HomeMy WebLinkAboutAgreement_Water Service_11/14/2024_FDEPSTATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
STATE REVOLVING LOAN PROGRAM
FOR
DRINKING WATER FACILITIES
LOAN APPLICATION
Florida Department of Environmental Protection
State Revolving Fund Program
Marjory Stoneman Douglas Building
3900 Commonwealth Boulevard
Tallahassee, FL 32399-3000
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Effective Date March 9, 2022
TABLE OF CONTENTS
Page
Number
LOAN APPLICATION
(1)SUBMITTAL.......................................................................................................................................... 1
(2)COMPLETING THE APPLICATION ................................................................................................... 1
(3)ASSISTANCE ........................................................................................................................................ 1
PART I - ADMINISTRATIVE INFORMATION
(1)PROJECT SPONSOR ............................................................................................................................. 1
(2)AUTHORIZED REPRESENTATIVE.................................................................................................... 1
(3)PRIMARY CONTACT .......................................................................................................................... 1
(4)ADDITIONAL CONTACTS .................................................................................................................. 1
(5)PROJECT NUMBER.............................................................................................................................. 1
(6)INTERIM FINANCING ......................................................................................................................... 1
PART II - PROJECT INFORMATION
A. PRECONSTRUCTION PROJECT
(1)ACTIVITIES .......................................................................................................................................... 2
(2)SCHEDULE............................................................................................................................................ 2
(3)COST...................................................................................................................................................... 2
B. CONSTRUCTION PROJECT
(1)ACTIVITIES .......................................................................................................................................... 2
(2)SCHEDULE............................................................................................................................................ 3
(3)COST...................................................................................................................................................... 3
PART III - FINANCIAL INFORMATION
(1)PRINCIPAL ........................................................................................................................................... 3
(2)TERMS AND REPAYMENT ................................................................................................................ 3
(3)ANNUAL FUNDING LIMIT ................................................................................................................. 3
(4) INFORMATION ON LIENS ................................................................................................................. 3
(5) ACTUAL AND PROJECTED REVENUES .......................................................................................... 4
(6)AVAILABILITY OF PLEDGED REVENUES ..................................................................................... 4
(7)LOAN SERVICE FEE ............................................................................................................................ 4
PART IV - AUTHORIZATION AND ASSURANCES
(1)AUTHORIZATION ................................................................................................................................ 4
(2)ASSURANCES ...................................................................................................................................... 4
PART V - SUPPLEMENTARY INFORMATION
SCHEDULE OF PRIOR AND PARITY LIENS............................................................................................ 7
SCHEDULE OF ACTUAL REVENUES AND DEBT COVERAGE ............................................................ 8
SCHEDULE OF PROJECTED REVENUES AND DEBT COVERAGE...................................................... 9
LIST OF ATTACHMENTS ............................................................................................................................ 10
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Effective Date March 9, 2022
LOAN APPLICATION
(1) SUBMITTAL. Submit the application and attachments to the Department of Environmental Protection, MS 3505, State
Revolving Fund Program, Marjorie Stoneman Douglas Building, 3900 Commonwealth Boulevard, Tallahassee, Florida
32399-3000. The application (and supporting documentation) may be submitted electronically to the Department’s
Project Manager.
(2) COMPLETING THE APPLICATION.
(a) This application consists of five parts: (I) ADMINISTRATIVE INFORMATION; (II) PROJECT INFORMATION; (III)
FINANCIAL INFORMATION; (IV) AUTHORIZATION AND ASSURANCES; and (V) SUPPLEMENTARY
INFORMATION.
(b) All information provided on this application must be printed. Monetary amounts may be rounded.
(c) Forms and attachments to be submitted are denoted with italic print.
(3) ASSISTANCE. Completing this application may require information that can be obtained from the Drinking Water
State Revolving Fund Program staff. Please email SRF_Reporting@dep.state.fl.us for assistance in completing this
application.
PART I - ADMINISTRATIVE INFORMATION
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(1)PROJECT SPONSOR
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Federal Employer Identification Number
174951:15
DUNS Number
(2)AUTHORIZED REPRESENTATIVE (person authorized to sign or attest loan documents).
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Name Title
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Telephone Email
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Mailing Address
(3)PRIMARY CONTACT (person to answer questions regarding this application).
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Name Title
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Telephone Email
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Employer
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Mailing Address
(4) ADDITIONAL CONTACTS. If more than one additional person is to receive copies of Department correspondence, attach
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the information (Attachment # ).
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Name Title
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Telephone Email
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Employer
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Mailing Address
EX61381.2
(5)PROJECT NUMBER (listed on the Department's priority list).
(6) INTERIM FINANCING. A local government project sponsor that has interim financing may be subject to certain
conditions regarding such financing.
Y
Is the project currently being funded with interim financing? Yes No
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 1 of 9 Effective Date March 9, 2022
PART II – PROJECT INFORMATION
If you are applying for a planning or design loan for a project that will involve construction, complete only Subpart A below.
If you are applying for a loan to construct a project that is already planned and designed, complete only Subpart B below.
A. PLANNING OR DESIGN PROJECT
Information should be provided for each separate facility to be planned and designed as appropriate. For design/build projects
(not eligible for design loans) or those where multiple facilities, segments, or phases are involved, please attach information
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for activities, schedule, and cost for each. (Attachment # )
(1) ACTIVITIES. Attach a brief description of the scope of planning and design activities to be financed by this loan.
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Include a list of any engineering services to be performed. (Attachment # ) Are these activities the same as those
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scheduled on the Request for Inclusion Form? Yes No. If “No”, please explain. (Attachment # )
(2)
SCHEDULE.
(a) Provide proposed completion dates for the items. (Please call Department staff to discuss time frames needed to complete
required tasks.)
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Planning documentation
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Engineering design
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Certification of site availability
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Permitting
(b) Do you anticipate that an interlocal agreement with another party will be necessary to implement Yes No
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the project? If “Yes”, please explain. (Attachment # )
(c) Is this a design/build project? Yes No
(3) COST. Is the cost information submitted for the planning or design loan priority list current? If Yes No
“No”, please explain and submit revised cost information using the appropriate page of the Request
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for Inclusion Form. (Attachment # ) Note that the disbursable amount will be limited to the
priority list amount.
PLANNING OR DESIGN APPLICANTS PROCEED TO PART III.
B. CONSTRUCTION PROJECT
(1)ACTIVITIES.
(a) Attach a brief description of construction activities to be financed by this loan. Include a list of the contracts (by title)
2
corresponding to the plans and specifications accepted by the Department (Attachment# ).
Y
Are these contracts the same as those scheduled on the Request for Inclusion Form? Yes No
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If “No”, please explain. (Attachment # )
Y
(b)Have any of the contracts been bid? Yes No
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If “Yes”, indicate which contracts have been bid. (Attachment # )
Y
(c) Was planning or design for this project financed in another SRF loan? Yes No
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If “Yes”, give the SRF loan number.
Y
(d)Does this project involve an interlocal agreement with other local governments or other entities? Yes No
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If “Yes”, attach a copy of the interlocal agreement. (Attachment # )
Is the interlocal agreement fully executed and enforceable? Yes No
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 2 of 9 Effective Date March 9, 2022
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If “No”, please explain (Attachment # ).
(2)SCHEDULE.(month and year)
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(a)Anticipated notice to proceed for first construction contract.
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(b)Anticipated completion of all construction contracts.
Y
(3)COST. Is the cost information submitted for the priority list current? Yes No
If “No”, please explain and submit revised cost information using the appropriate page of the Request for Inclusion Form.
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(Attachment # ) Note that the disbursable amount will be limited to the priority list amount.
PART III - FINANCIAL INFORMATION
Estimates of the capitalized interest, interest rate, pledged revenue coverage, limitations on annual loan amounts for large
projects, applicability and amount of repayment reserves, amount of the loan service fee and any other information may be
obtained by contacting staff in the State Revolving Fund Management Section.
6-856-611
(1)PRINCIPAL. The requested amount of the loanwhich does not include capitalized interest is $
Note that the disbursable amount will be limited to the priority list amount and must be consistent with the project
information provided under PART II of this application. Also note that the capitalized interest is an inexact estimate, and
it is subject to adjustment by the Department to reflect actual disbursement timing. The principal amount of the loan does
not include the loan service fee.
(2)TERMS AND REPAYMENT.
Loans for planning and design shall be amortized over 10 years. Construction loans to local government project
sponsorsare amortized over the lesser of useful life of the project or 20 years unless the project is to serve a small
communityqualifying as financially disadvantaged. Construction loans to financially disadvantaged small
communities may beamortized over the lesser of useful life of the project or 30 years. Construction loans to non-
governmental project sponsorsare amortized over the lesser of the useful life of the project or 20 years. Interest
charges and principal are paidsemiannually.
31
What is the useful life of the project? (years)
31
Over how many years would you like to amortize the loan? (years)
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List all revenues that are to be pledged for repayment of this loan.
Pledged revenue receipts or collections by the project sponsor must exceed the amount of the repayments due to
theDepartment unless there are other collateral provisions. The excess revenue, or coverage, generally is 15% of
eachrepayment.
26
What coverage is proposed for the loan? % (coverage percentage)
y
(d)Is any other financial assistance being applied to this project?Yes No
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If “Yes”, please list. (Attachment# )
(3)ANNUAL FUNDING LIMIT. Large project funding (generally, loans in excess of $10 million) may be provided in
increments pursuant to the initial loan agreement and subsequent amendments.
(4)INFORMATION ON LIENS.
(a)Describe, if applicable, all debt obligations having a prior or parity lien on the revenues pledged to repay this loan.
3'4
(Attachment # ) For example: City Name, Florida, Water and Sewer System Revenue Bonds, Series 1996, issued
in the amount of $10,000,000, pursuant to Ordinance No. 93-104, as amended and supplemented by Ordinance No. 96-
156.
(b)Using the Part V, Schedule of Prior and Parity Liens, provide debt service information, if applicable, on each prior and
parity obligation.
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 3 of 9 Effective Date March 9, 2022
(c) For the listed obligations, provide a copy of the ordinance(s), resolution(s), official statement(s), or pages thereof, setting
forth the definitions, use of proceeds, debt service schedule, pledged revenues, rate covenants, provisions for issuing
5
additional debt, provisions for bond insurance, and debt rating. (Attachment # ).
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(d) Describe any other notes and loans payable from the revenues pledged to repay this loan. (Attachment # ).
(5) ACTUAL AND PROJECTED REVENUES.
(a) Complete the Part V, Schedule of Actual Revenues and Debt Coverage for the past two fiscal years.
(b) Complete the Part V, Schedule of Projected Revenues and Debt Coverage, demonstrating the availability of pledged
revenues for loan repayment.
(6) AVAILABILITY OF PLEDGED REVENUES. All sources must be supported by a written legal opinion. (Attachment
6
# ) The opinion must address the following:
(a) Availability of the revenues to repay the loan.
(b) Right to increase rates at which revenues shall be collected to repay the loan.
(c) Subordination of the pledge if pledged revenues are subject to a prior or parity lien.
(7) LOAN SERVICE FEE. A loan service fee is assessed on each loan. The fee is not part of the loan. The fee along with
interest thereon will be deducted from the first available repayments after the final amendment to the loan agreement.
PART IV – AUTHORIZATION AND ASSURANCES
(1) AUTHORIZATION. Provide an authorizing resolution of the Applicant's governing body or other evidence of
7
authorization (Attachment # ) for the following:
(a) Pledging revenues to repay the loan.
(b) Designation of the Authorized Representative(s) to file this application, provide assurances, execute the loan agreement,
and represent the Applicant in carrying out responsibilities (including that of requesting loan disbursements) under the
loan agreement.
(2) ASSURANCES. The Applicant agrees to comply with the laws, rules, regulations, policies and conditions relating to
the loan for this project. Applicants should seek further information from the Drinking Water State Revolving Fund
Program staff as to the applicability of the requirements if the necessity for the assurances is of concern. Specifically,
the Applicant certifies that it has complied, as appropriate, and will comply with the following requirements, as
appropriate, in undertaking the Project:
(a) Assurances for capitalization grant projects.
1. Complete all facilities for which funding has been provided.
2. The Applicant is advised, pursuant to 40 CFR 35 Section 35.3575, that a number of Federal law, executive orders, and
government-wide policies can apply to your project or activity that is receiving Federal financial assistance. The
Applicant agrees to read those provisions regarding the application of Federal cross-cutting authorities (cross-cutters)
to determine their applicability to your specific project or activity.
(b) Assurances for other projects. Please note that Florida Statutes are available at http://www.leg.state.fl.us. They are also
available at the following physical address: Florida Department of State Division of Library and Information Services
R.A. Gray Building 500 South Bronough Street Tallahassee, Florida 32399-0250.
1. Chapter 161, Part I, F.S., "Beach and Shore Preservation Act" and Part III, “Coastal Zone Protection Act of 1985”
which regulate coastal zone construction and all activities likely to affect the condition of the beaches or shore.
2. Chapter 163, Part II, F.S., the “Local Government Comprehensive Planning and Land Development Regulation Act”
which requires units of local government to establish and implement comprehensive planning programs to control
future development.
3. Chapter 186, F.S., State and Regional Planning, which requires conformance of projects with Regional Plans and the
State Comprehensive Plan.
4. Chapter 253, F.S., "Emergency Archaeological Property Acquisition Act of 1988" which requires protection of
archaeological properties of major statewide significance discovered during construction activities.
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 4 of 9 Effective Date March 9, 2022
5. Chapter 258, Part III, F.S., which requires protection of components or potential components of the national wild and
scenic rivers system.
6. Chapter 267, F.S., the “Florida Historical Resources Act” which requires identification, protection, and preservation of
historic properties, archaeological and anthropological sites.
7. Chapter 287, Part I, F.S., which prohibits parties convicted of public entity crimes or discrimination from participating
in State-assisted projects and which requires consideration of the utilization of Minority Business Enterprises in State-
assisted projects.
8. Chapter 372, F.S., the Florida Endangered and Threatened Species Act which prohibits the killing or wounding of an
endangered, threatened, or special concern species or intentionally destroying their eggs or nest.
9. Chapter 373, Part IV, F.S., Florida Water Resources Act of 1972, which requires that activities on surface waters or
wetlands avoid adversely affecting: public health, safety, welfare, or property; conservation of fish and wildlife,
including endangered or threatened species or their habitats; navigation or the flow of water; the fishing or recreational
values or marine productivity; and significant historical and archaeological resources.
10. Chapter 380, Part I, F.S., Florida Environmental Land and Water Management Act of 1972 as it pertains to regulation
of developments and implementation of land and water management policies.
11. Chapter 381, F.S., Public Health, as it pertains to regulation of onsite wastewater systems.
12. Chapter 403, Part I, F.S., Florida Air and Water Pollution Control which requires protection of all waters of the state.
13. Chapter 582, F.S., Soil and Water Conservation Act which requires conformance with Water Management District’s
regulations governing the use of land and water resources.
14. Governor’s Executive Order 95-359, which requires State Clearinghouse review of project planning documentation
and intergovernmental coordination.
(c) Assurances for all projects. The loan recipient certifies that it is not listed on the governmentwide exclusions in the
System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement
Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment
and Suspension.”
I, the undersigned Authorized Representative of the Applicant, hereby certify that all information contained herein and in the
attached is true, correct, and complete to the best of my knowledge and belief. I further certify that I have been duly authorized
to file the application and to provide these assurances.
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Signed this Day of ,20
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Authorized Representative
(signature) (name typed or printed)
Attachments
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 5 of 9 Effective Date March 9, 2022
PART V – SUPPLEMENTARY INFORMATION
SCHEDULE OF PRIOR AND PARITY LIENS
(EXCLUDING SRF LOANS)
List annual debt service beginning two years before the anticipated loan agreement date and continue at least three
additional fiscal years. Use additional pages as necessary.
#1 #2 #3
Identify Each Obligation
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31
Coverage % % %
Y
Insured? Yes No Yes No Yes No
Total Debt
Fiscal Annual Debt Service (Principal Plus Interest) Total Service Incl.
Year #1 #2 #3 Debt Service Coverage
581-335
36675-37:
581-335
20 $ $ $$ $
20 $ 581-622$ $$581-622$675-724
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20 $ $ $$$
583-238583-238677-663
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20 $ 345-221$ $$$391-:43
O0B345-221
20 $ $ $$$
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20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
35
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
20 $ $ $$$
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 6 of 9 Effective Date March 9, 2022
PART V – SUPPLEMENTARY INFORMATION
SCHEDULE OF ACTUAL REVENUES AND DEBT COVERAGE
(Provide information for the two fiscal years preceding the anticipated date of the SRF loan agreement.)
Year 20 Year 20
(a)Operating Revenues (Source)
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)7-353*418-868
(b)Interest Income
(c)Other Income or Revenue (Identify)
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DbqjubmDpousjcvujpot219-57525:-357
7-837-1158-656-297
(d)Total Revenues
(e)Operating Expenses (excluding
interest on debt, depreciation,
5-865-2585-721-:28
and other non-cash items)
2-:82-9683-:45-98:
(f)Net Revenues \[(f) = (d) – (e)\]
(g)Debt Service (including any
676-125676-977
required coverage)
(h)Attach audited annual financial report(s), or pages thereof, or other documentation necessary to
support the above information. Include any notes or comments from the audit reports regarding
compliance with covenants of debt obligations having a prior or parity lien on the revenues pledged for
8'9
repayment of the SRF Loan. (Attachment # )
(i)Attach worksheets reconciling this page with the appropriate financial statements (for example,
:
backing out depreciation and interest payments from operating expenses). (Attachment #)
(j)If the net revenues were not sufficient to satisfy the debt service and coverage requirement, please
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explain what corrective action was taken. (Attachment # )
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 7 of 9 Effective Date March 9, 2022
PART V – SUPPLEMENTARY INFORMATION
SCHEDULE OF PROJECTED REVENUES AND DEBT COVERAGE
Begin with the fiscal year preceding first anticipated semiannual loan payment and continue for at least three
additional years. Attach a separate page for previous State Revolving Fund loans.
Year Year Year Year Year
20 20 20 20 20
:-491-967 21-15:-11921-511-83421-875-859
:-81:-297
(a)Operating Revenue
361-111
213-497
:6-126:8-583::-:3:
(b)Interest Income
(c)Other Income or Revenue
(identify)
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48-383
53-47353-:6954-66655-263
DbqjubmDpoofdujpoDibshft
26-111
71-11171-11171-11171-111
:-794-239 21-35:-54921-715-31821-:82-397
:-:17-674
(d)Total Revenues
(e)Operating Expenses (excluding
interest on debt, depreciation, and
7-435-288
7-38:-6647-968-468
7-519-7467-537-:27
other non-cash items)
4-469-:62
4-:7:-9965-224-:3:
4-5:8-:395-288-3:2
(f)Net Revenues (f = d - e)
(g)Revenue (including coverage)
pledged to debt service, excluding
675-37:
677-663
675-724391-:43
1
SRF loans
(h)Revenue (including coverage)
11111
pledged to outstanding SRF loans
(i)Revenue Available for this SRF
3-8:5-793
3-:44-4264-514-4444-9:7-46:5-224-:3:
Loan \[(i) = (f) – (g) –(h)\]
21
(j)Identify the source of the above information and explain methods used to develop the projections (Attachment # ).
Include an explanation of any revenue and expense growth or other adjustments; for example, any rate increases,
service growth, inflation adjustments, expense adjustments reflecting the cost of operating additional facilities, or other
considerations.
(k)For construction loans, are the above projections consistent with the accepted financial
Yes No
feasibility information in the planning documents?
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If “No”, please explain. (Attachment # )
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 8 of 9 Effective Date March 9, 2022
PART V – SUPPLEMENTARY INFORMATION
LIST OF ATTACHMENTS
LIST OF ATTACHMENTS. This application requires the submittal of Attachments to provide supplemental
information. The application is not complete without the completed List of Attachments. Please list all
attachments that you are including with this application form.
Attachment Number
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FyjtujohEfcuBhsffnfou)3119Mpbo*$4
$5
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MfhbmPqjojpo$6
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BDGSGZ3132.33)foejohTfqufncfs41-3133*$8
BDGSGZ3133.34)foejohTfqufncfs31-3134$9
SfdpodjmjbujpopgBduvbmBnpvoutupTSGBqqmjdbujpo$:
FyqmbobujpopgqspkfdujpotGZ3136.3:$21
Form Application DW-1
Incorporated in 62-552.430(1)(a), F.A.C. Page 9 of 9 Effective Date March 9, 2022
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #1
PROJECT DESCRIPTION
Water Treatment Plant Improvements
ATTACHMENT #1
PROJECT DESCRIPTION – Water Treatment Plant Improvements
BACKGROUND
The Village of Tequesta (VOT) is the northernmost municipality in Palm Beach County. VOT’s
utilities department serves a total population of about 15,000: the municipal boundary is two
square miles, serving about 5,000 people, and the water utility service area is four square miles
and serves about 10,000 people.
The Village of Tequesta has two parallel sets of unit processes at its main facility located at 901
North Old Dixie Highway in Tequesta. The original water treatment plant (WTP) is a 2.7 million
gallon per day (MGD) conventional sand filtration treatment process that treats water from the
surficial aquifer.
In 2000, the Village constructed the first phase of a reverse osmosis (RO) water treatment
system to treat brackish water from the upper Floridan aquifer, producing 1.2 MGD of finished
water. The RO treatment was expanded in 2007 and again in 2011 and the RO WTP is now
rated at 3.6 MGD maximum-day.
The treated water from the two parallel systems is blended before it enters the water distribution
system.
PROJECT DESCRIPTION AND NEED
The various expansions of the WTP have resulted in treatment components and communication
systems that are currently not working at their optimum efficiency, are nearing the end of their
lifecycle and/ or need safety upgrades.
The upgrade project funded by this state revolving fund loan consists of the construction of
improvements to process efficiency, process safety, and control of the water treatment plant(s)
including:
Conversion of the gaseous (anhydrous) ammonia system to a safer liquid ammonia
system
Instrumentation and control upgrades – the control system hardware has been modified
and compounded as each upgrade or expansion has occurred and is not well integrated;
the planned instrumentation and automation upgrades will address this and allow better
control over the WTP
Installation of water quality monitoring equipment/ automation
Improvements to the WTP’s reverse osmosis system
Additional upgrades as shown on the project design drawings and as specified herein
PWS ID: 4501438
PROJECT LOCATION (LAT/LONG DEGREES):
901 N. Old Dixie Hwy, Tequesta, FL 33469 (physical address of WTP)
(on permit address is: 357 Tequesta Dr, Tequesta, FL 33469)
Latitude: 26 degrees 58’ 5.22” W/ Longitude: 80 degrees 5’ 31.68” N
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #2
EXISTING DEBT OBLIGATIONS/ LIENS
Information on Obligations (2008)
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #3
EXISTING DEBT OBLIGATIONS & LIENS
2008 Agreement
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #4
AUTHORIZATION OF DEBT RESOLUTION
Authorization Resolution for 2008 Debt
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #5
LEGAL OPINION
Village of Tequesta’s Village Attorney
Letter/ Legal Opinion
Keith W. Davis, Esq.
Village Attorney
Email: keith@davislawteam.com
th
October 24, 2024
TO:Program Administrator
State Revolving Fund Management
3900 Commonwealth Blvd., Mail Station 3505
Tallahassee, Florida 32399-3000
RE: Project #: DW50270-1
Tequesta Water Treatment Plant Improvements
______________________________________________________________________
Attention Program Administrator:
I am the duly appointed Village Attorney for the Village of Tequesta. The Village proposes to
borrow $5,745,500.00 from the State Revolving Fund for construction of Village of Tequesta
water treatment plant improvements. The loan will be secured by the net revenues of the
Village’s water system and the pledged revenues are legally available to pledge. The Village of
Tequesta has the legal authority to increase rates to ensure repayment of the loan.
The pledge on revenues is subject to a prior lien with the following issues:
Village of Tequesta, Promissory Note, Bank of America, Series 2008.
2022 SRF Loan Project DW50270 Water Main Replacement Project No. 1 and No. 4.
Sincerely,
______________________________
Keith W. Davis
______________________________________________________________________________
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www.davislawteam.com
ATTORNEYS
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #6
AUTHORIZING RESOLUTION OF
APPLICANTS GOVERNING BODY FOR
PLEDGING REVENUES & OTHER
ABILITIES
Resolution 20-24 Allowing Mayor Young
to Pledge Funds
RESOLUTION 20-24
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, RELATING TO THE STATE REVOLVING FUND
LOAN PROGRAM; MAKING FINDINGS; AUTHORIZING THE LOAN
APPLICATION; AUTHORIZING THE LOAN AGREEMENT;
ESTABLISHING PLEDGED REVENUES; DESIGNATING AUTHORIZED
REPRESENTATIVES; PROVIDING ASSURANCES; PROVIDING FOR
CONFLICTS, SEVERABILITY, AN EFFECTIVE DATE, AND FOR OTHER
PURPOSES
WHEREAS, Florida Statutes provide for loans to local government agencies to
finance the construction of water facilities; and
WHEREAS, Florida Administrative Code rules require authorization to apply for
loans, to establish pledged revenues, to designate an authorized representative; to
provide assurances of compliance with loan program requirements; and to enter into a
loan agreement; and
WHEREAS, the State Revolving Fund loan priority list currently designates Project
No. DW50270 as eligible for available funding; and
WHEREAS; the Village of Tequesta, Florida, intends to enter into a loan
agreement with the Department of Environmental Protection under the State Revolving
Fund for Project No. DW502701 financing.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE OF TEQUESTA, FLORIDA, AS FOLLOWS:
SECTION I. The foregoing findings are incorporated herein by reference and
made a part hereof.
SECTION II. The Village of Tequesta, Florida, is authorized to apply for a loan to
finance Project No. DW502701.
SECTION III. The revenues pledged for the repayment of the loan are net water
system revenuesafter payment of debt service on the Village’s Promissory Note, Bank
of America, Series 2008.
SECTION IV. The VillageManager is hereby designated as the authorized
representative to provide the assurances and commitments required by the loan
application.
SECTION V. The Mayor of Tequesta is hereby designated as the authorized
representative to execute the loan agreement which will become a binding obligation in
accordance with its terms when signed by both parties. The Mayor is authorized to
represent the Village in carrying out the Village’s responsibilities under the loan
agreement. The Mayor is authorized to delegate responsibility to appropriate Village staff
to carry out technical, financial, and administrative activities associated with the loan
agreement.
SECTION VI. The legal authority for borrowing moneys to construct this Project is
section 166.111 Florida Statutes.
SECTION VII. All resolutions or part of Resolutions in conflict with any of the
provisions of this Resolution are hereby repealed.
SECTION VIII. If any section or portion of a section of this Resolution proves to
be invalid, unlawful, or unconstitutional, it shall not be held to invalidate or impair the
validity, force, or effect of any other section or part of this Resolution.
SECTION IX. This Resolution shall become effective immediately upon its
passage and adoption.
PASSED and ADOPTED this ______ Day of October, 2024
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #7
ACFR FY2021-2022
Statement of Revenues, Expenses and
Changes in Net Position
(FY21/22 ending September 30, 2022)
Wjmmbhf!pg!Ufrvftub-!Gmpsjeb!
Annual Comprehensive Financial Report
For Fiscal Year Ended
September 30, 2022
2022 Village of Tequesta Council
L to R: Vice-Mayor Kyle Stone, Council Member Aaron Johnson,
Council Member Laurie Brandon, Mayor Molly Young
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
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letter of Transmittal i
Certificate of Achievement for Excellence in Financial Reporting vi
Organization Chart vii
List of Principal Officials viii
II. FINANCIAL SECTION
1
(Required Supplementary Information) 4
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 19
Statement of Activities 20
Fund Financial Statements
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
25
Statement of Revenues, Expenses and Change26
27
28
29
Notes to Basic Financial Statements 30
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Com98
Note to the Budgetary Comparison Schedule 99
Schedule of ChNet Pension Liability and Related Ratios 100
Schedule of Village Contributions 101
Schedule of Investment Returns 102
Schedule o103
Schedule of Village Contributions 104
Schedule of Investment Returns 105
Schedule of ChPension 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
Florida Retirement System Pension 110
Share of the Net Pension Liability
Retiree Health Insurance Subsidiary Program 111
orida Retirement System Pension Plan 112
ree Health Insurance Subsidy Program 113
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
II. FINANCIAL SECTION (CONTINUED)
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules
114
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds 115
Budgetary Comparison Schedu116
ial Law Enforcement Trust Fund 117
118
119
Combining Statement of Fiduciary Net Position 120
Combining Statement of Changes in Fiduciary Net Position 121
III. 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
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
136
Full-time-Equivalent Village Government Employees by Function/Program 137
Operating Indicators by Function/Program 138
Capital Asset Statistics by Function/Program 139
IV. REPORTING SECTION
Reporting and on Compliance and Other Matters based on an Audit of Financial
Statements Performed in Accordance with 140
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
port On Compliance Pursuant To Section 218.415
Florida Statutes 152
INTRODUCTORY SECTION
March 15, 2023
To the Honorable Mayor,
Members of the Village Council
And Citizens of the Village of Tequesta, Florida
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.
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, Certifie
ements for the fiscal year ended September 30, 2022. The independent
mmediately follows the independent audi
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.
i
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.
stricted 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
ii
concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits
likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by
management.
Single Audit
As a recipient of federal, state and county financial assistance, the Village is also responsible for
ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws
and regulations related to those programs. The Village was subject to an audit in accordance with the
Uniform Guidance or the Florida Single Audit Act for the fiscal year ended September 30, 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
adoption. This annual budget serves
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 % as of September 2022 and 3.9%
ment 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 (-4.5% 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
iii
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 Villag adopted 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.
Excellence.
Ethics & Transparency.
Quality of Life.
Employees.
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.
l 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.
iv
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.
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 wi
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 Jeff Snyder, CPA, CGMA
Village Manager Finance Director
v
vi
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2022
vii
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2022
VILLAGE COUNCIL
Molly Young Mayor
Kyle Stone Vice-Mayor
Laurie Brandon Councilmember
Frank D'Ambra, III Councilmember
Aaron Johnson Councilmember
VILLAGE OFFICIALS
Jeremy Allen, ICMA-CM Village Manager
Davis & Associates, PA Village Attorney
Lori McWilliams, MMC Village Clerk
Jeffery Snyder, CPA, CGMA Finance Director
Jim Trube Fire Chief
Gus Medina Police Chief
Merlene Reid, Ed.D., SPHR Human Resources Director
NZ Consultants, Inc. Planning and Zoning Director
Jose Rodriguez Building Director
Greg Corbitt Parks and Recreation Director
Marjorie Craig, PE Utilities Director
VILLAGE INDEPENDENT AUDITORS
Mauldin & Jenkins, LLC
viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' 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,
of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively
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.
Basis for 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 Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
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 1J to the financial statements, as of October 1, 2021, the Village adopted new accounting
guidance, GASB Statement No. 87, Leases. Our opinions are not modified with respect to this matter.
Responsibilities of Management for 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,
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 941-747-6035www.mjcpa.com
Members of The American Institute of Certified Public Accountants
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
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
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
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
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
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.
2
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
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 information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual 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
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 performed, 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
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
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards
Bradenton, Florida
March 8, 2023
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
(MD&A)
2022
Village of Tequesta, Florida
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 Highlights
The assets and deferred outflows of resources of the Village of Tequesta exceeded its liabilities and
deferred inflows of resources at the close of the most recent fiscal year by $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.
sition 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 fisc
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 $500,000 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 introductio
consist of three components: 1) government-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 governmentwide financial statements are designed to provide
, in a manner similar to a private-sector business.
The statement of net position presents financial information on all of
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.
4
2022
The statement of activities presents information showing how the Vi
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes
and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Village 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 (businesstpe
activities). The governmental activities of the Village includes general government, public safety,
transportation and leisure services. The business-type activities of the Village includes water, stormwater and
refuse and recycling.
The government-wide financial statements can be found on pages 19-20 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The Village of Tequesta, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with 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. G overnmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements utilize the modified accrual basis of accounting
which focuses on nearterm inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information is useful in assessing a
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
near-term financing decisions. Both the governmental
fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds and governmental
activities
The Village maintains five individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund and Capital Projects Fund which are considered major funds.
Data from the other three governmental funds is combined into a single aggregated presentation. Individual
fund data for each of these non-major governmental funds is provided in the form of combining statements in
the combining and individual fund statements and schedules section of this report.
The Village 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.
21-24 of this report.
Proprietary Funds. nterprise funds
utilize the full accrual basis of accounting which is the same basis used to report the same functions
presented as businesstpe activities in the government-wide financial statements. The Village uses
enterprise funds to account for its water, stormwater, and refuse and recycling funds.
5
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 suppor
funds is much like that used for proprietary funds.
The Village maintains one ty Pension trust fund which is used to report resources
held in trust for retirees and beneficiaries covered by the Public Safet Pension Plan (which includes the
General mploees
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 supplementar information
obligation to provide pension benefits and OPEB benefi
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
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.
tflows 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
corded 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.
6
2022
Village of Tequesta's Net Position
Governmental Business-type
Activities Activites Total
2022 2021 2022 2021 2022 2021
Current and other assets $ 15,818,554 $ 12,907,656 $ 9,130,155 $ 7,637,085 $ 24,948,709 $ 20,544,741
Capital assets, net 17,364,642 15,854,015 17,980,929 18,133,873 35,345,571 33,987,888
Total assets 33,183,196 28,761,671 27,111,084 25,770,958 60,294,280 54,532,629
Total deferred outflows of
resources 1,990,091 2,078,861 553,740 573,963 2,543,831 2,652,824
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 5,839,980 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
Law Enforcement 80,795 143,689 -- 80,795 143,689
Unrestricted 8,831,563 9,028,159 7,382,153 6,444,980 16,213,716 15,473,139
Total net position $ 20,936,548 $ 17,760,694 $ 23,416,766 $ 22,292,324 $ 44,353,314 $ 40,053,018
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 Vi
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 $16,213,716 is unrestricted and may be used
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.
7
2022
8
2022
Village of Tequesta
Changes in Net Position
Governmental Business-typeTotal
Activities Activities
2022 2021 2022 2021 2022 2021
Revenues:
Program Revenues:
Charges for Services $ 3,603,521 $ 4,358,422 $ 7,577,143 $ 7,578,612 $ 11,180,664 $ 11,937,034
Operating Grants & Contributions 1,581,739 1,676,429 - 19,157 1,581,739 1,695,586
Capital Grants & Contributions 61,667 63,568 108,464 - 170,131 63,568
General Revenues:
Ad valorem Taxes 8,260,937 7,848,744 -- 8,260,937 7,848,744
Other Taxes 2,170,196 1,966,890 -- 2,170,196 1,966,890
Franchise fees on gross receipts 530,165 509,963 -- 530,165 509,963
Unrestricted intergovernmental 1,062,117 901,243 -- 1,062,117 901,243
Unrestricted investment earnings 58,188 13,296 (6,014) 7,917 52,174 21,213
Gain (loss) on sale of capital assets 972 26,524 6,803 29,834 7,775 56,358
Other Miscellaneous 23,999 54,949 45,162 64,074 69,161 119,023
Total Revenues 17,353,501 17,420,028 7,731,558 7,699,594 25,085,059 25,119,622
Expenses:
General government 2,961,670 3,121,260 -- 2,961,670 3,121,260
Public safety 7,926,208 7,507,748 -- 7,926,208 7,507,748
Transportation 1,986,016 1,944,570 -- 1,986,016 1,944,570
Leisure Services 1,055,418 701,364 -- 1,055,418 701,364
Interest expense/other fiscal charges 239,652 59,662 116,584 131,391 356,236 191,053
Water utility services -- 5,434,986 5,679,124 5,434,986 5,679,124
Stormwater services -- 715,004 524,732 715,004 524,732
Refuse & recycling services -- 529,107 511,299 529,107 511,299
Total Expenses 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 $ 20,936,548 $ 17,760,694 $ 23,416,766 $ 22,292,324 $ 44,353,314 $ 40,053,018
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.
es 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. Thlowed for an overall increase in net
position of $2,995,972.
9
2022
rnment, Public Safety, Transportation and Leisure
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.
10
2022
The following is a comparison of revenues by source for governmental activities for fiscal year 2022 and
2021.
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.
11
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 ARPA funds to the
Stormwater Utility fund for a much needed system repairs.
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements
Governmental funds:governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a
y 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
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
. 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.
12
2022
The General Fund is the chief operating fund of the Village. At the end of the current fiscal year total fund
balance was $8,011,879, 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 me
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.
13
2022
14
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
Change
Revenue Sources 2022 % of Total $ % 2021
Ad valorem taxes $ 8,260,937 50.1% $ 412,193 5.3% $ 7,848,744
Other taxes 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 $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 Fund
Expenditures by Function/Classification
Change
Function 2022 % of Total $ % 2021
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 complete
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.
15
2022
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 -$912,611. 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:
government-wide financial statements, but in more detail. The table below summarizes the operating income
(loss) and the change in net position 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
16
2022
shown below. Other factors concerning the finances of this major fund have already been addressed in the
business-type activities.
PROPRIETARY FUNDS
Change in Operating Income (Loss) and Net Position
Operating Income (Loss) Change in Net Position
2022 2021 2022 2021
Water $1,144,584 $ 418,690 $ 1,174,434 $ 913,413
Stormwater (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:rnmental 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.
s capital assets can be found in Note 3D, Capital Assets, starting on
page 51 of this report.
VILLAGE OF TEQUESTA
Capital Assests
Governmental
Activities Business-type Activities Total
2022 2021 2022 2021 2022 2021
Land $ 634,017 $ 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
Improvements 2,509,454 2,509,454 58,720 58,720 2,568,174 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 28,139,770 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 $ 15,854,015 $ 17,964,641 $ 18,133,873 $ 35,329,283 $ 33,987,888
17
2022
Noncurrent liabilities: At the end of the current fiscal year, the Village had a total of $11,388,940 of
noncurrent liabilities. The largest portion are debt instruments in the form of promissory notes with Bank of
America that are secured by general revenue sources. The table be
position.
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
post-employment benefit obligations. A more detailed
explanation can be found in Note
Village of Tequesta -Noncurrent Liabilities
Governmental Activities Business-type Activities Total
2022 2021 2021 2021
2022 2022
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
Compensated 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 $ 10,754,387 $ 2,870,519 $ 3,166,641 $ 10,687,525 $ 13,921,028
The following economic factors currently affect the Village of Tequesta and were considered in developing
the 2022-2023 fiscal year budget:
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
those with an interest in the govern 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.
18
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Business-
Governmental type
Activities Activities Total
Assets
Cash $ 6,703,821 $ 4,937,354 $ 11,641,175
Investments 2,451,086 2,451,085 4,902,171
Receivables, net 2,157,247 925,712 3,082,959
Inventories 65,637 223,061 288,698
Prepaid items 765,515 88,997 854,512
Net pension asset 3,675,248 503,946 4,179,194
Capital assets not being depreciated 652,767 917,450 1,570,217
Capital assets being depreciated, net 16,711,875 17,063,479 33,775,354
33,183,196 27,111,084 60,294,280
Total Assets
Deferred Outflows of Resources
Deferred outflows - pensions 1,666,803 341,154 2,007,957
Deferred outflows - OPEB 323,288 89,954 413,242
Deferred charge on refunding -122,632 122,632
1,990,091 553,740 2,543,831
Total Deferred Outflows of Resources
Liabilities
Accounts payable 376,584 362,468 739,052
Accrued liabilities 351,951 36,270 388,221
Accrued interest payable 72,954 -72,954
Customer deposits -42,430 42,430
Unearned revenue 4,300 -4,300
Due to other governments 6,718 2,202 8,920
Noncurrent liabilities:
Due within one year 552,805 406,822 959,627
Due in more than one year 7,251,042 2,081,466 9,332,508
Total OPEB liability due in more than one year 714,574 198,826 913,400
Net pension liability due in more than one year -183,405 183,405
9,330,928 3,313,889 12,644,817
Total Liabilities
Deferred Inflows of Resources
Deferred inflows -pensions 3,568,978 934,169 4,503,147
Deferred inflows -leases 1,336,833 -1,336,833
4,905,811 934,169 5,839,980
Total Deferred Inflows of Resources
Net Position
Net investment in capital assets 10,335,163 15,642,791 25,977,954
Restricted:
Infrastructure 568,199 -568,199
Debt Service 288,000 391,822 679,822
Building 832,828 -832,828
80,795
Law Enforcement 80,795 -
Unrestricted 8,831,563 7,382,153 16,213,716
$ 20,936,548 $ 23,416,766 $ 44,353,314
Total Net Position
The accompanying notes are an integral part of these financial statements.
19
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Primary Government
Operating Capital Grants
Charges for Grants and and Governmental Business-type
Functions/Programs Expenses Services ContributionsContributions 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)
Leisure services 1,055,418 38,063 500 -(1,016,855) -(1,016,855)
Interest on long-term debt 239,652 ---(239,652) -(239,652)
14,168,964 3,603,521 1,581,739 61,667 (8,922,037) -(8,922,037)
Total governmental activities
Business-type Activities
Water 5,551,570 6,579,570 -108,464 -1,136,464 1,136,464
Stormwater utility 715,004 490,267 ---(224,737) (224,737)
Refuse and Recycling 529,107 507,306 ---(21,801) (21,801)
6,795,681 7,577,143 -108,464 -889,926 889,926
Total business-type activities
$ 20,964,645 $ 11,180,664 $ 1,581,739 $ 170,131 (8,922,037) 889,926 (8,032,111)
Total primary government
General Revenues and transfers
General revenues:
Ad valorem taxes 8,260,937 -8,260,937
Utility taxes 888,384 -888,384
Communication service tax 327,900 -327,900
Insurance premium taxes 293,595 -293,595
Infrustructure surtax 568,037 -568,037
Business taxes 92,280 -92,280
Franchise fees based on gross receipts 530,165 -530,165
Unrestricted intergovernmental revenues 1,062,117 -1,062,117
Unrestricted investment earnings 58,188 (6,014) 52,174
Gain on sale of capital assets 972 6,803 7,775
Miscellaneous revenues 23,999 45,162 69,161
Transfers (188,565) 188,565 -
11,918,009 234,516 12,152,525
Total general revenues and transfers
Change in net position 2,995,972 1,124,442 4,120,414
17,940,576 22,292,324 40,232,900
Net Position - Beginning (restated)
$ 20,936,548 $ 23,416,766 $ 44,353,314
Net Position - Ending
The accompanying notes are an integral part of these financial statements.
20
VILLAGE OF TEQUESTA, FLORIDA
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2022
Nonmajor
Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Assets
Cash $ 4,632,774 $ 136,361 $ 1,934,686 $ 6,703,821
Investments 2,451,086 --2,451,086
Receivables, net 2,157,188
17 42 2,157,247
Inventories 65,355 -
282 65,637
Prepaid items 746,953 -18,562
765,515
$ 10,053,356 $ 136,378 $ 1,953,572 $ 12,143,306
Total Assets
Liabilities
Accounts payable $ 354,995 $ -$ 21,589 $ 376,584
Accrued liabilities 343,952 -7,999
351,951
Unearned revenue 4,300 --4,300
Due to other governments 1,397 -5,321 6,718
704,644 -34,909 739,553
Total Liabilities
Deferred Inflows of Resources
Deferred inflows - leases 1,336,833 --1,336,833
1,336,833 --1,336,833
Total Deferred Inflows of Resources
Fund Balances
Nonspendable:
Inventories 65,355 -282 65,637
Prepaid items 746,953 -18,562 765,515
Restricted:
Infrastructure --568,199 568,199
Debt Service
288,000 --288,000
Building --832,828 832,828
Law Enforcement --80,795 80,795
Committed to:
Disaster Reserve 500,000 --500,000
Capital Projects --312,722 312,722
Assigned to:
Capital Projects -128,378 31,690 160,068
Subsequent years budget 2,036,098 8,000 73,585 2,117,683
Unassigned:
General Fund 4,375,473 --4,375,473
8,011,879 136,378 1,918,663 10,066,920
Total Fund Balances
$ 10,053,356 $ 136,378 $ 1,953,572 $ 12,143,306
Total Liabilities and Fund Balances
The accompanying notes are an integral part of these financial statements.
21
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022
Amounts reported for governmental activities in the statement of net position are
different because:
$ 10,066,920
Total Fund Balances - Governmental Funds
Net pension asset is not considered to represent a financial asset in
the governmental funds. 3,675,248
Net capital assets used in the governmental activities are not financial resources
and, therefore are not reported in the governmental funds. 17,364,642
Deferred outflows of resources related to pensions and OPEB transactions not reported
in the governmental funds. 1,990,091
Deferred inflows of resources related to pension transactions not recognized
in the governmental funds. (3,568,978)
Long-term liabilities, including notes payable, are not due and payable in the
current period and, therefore, are not reported in the governmental funds. (7,876,801)
Total OPEB liability is not due and payable in the current period and, therefore,
not reported in the governmental funds.
(714,574)
$ 20,936,548
Net Position of Governmental Activities
The accompanying notes are an integral part of these financial statements.
22
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Revenues
Ad valorem taxes $ 8,260,937 $ -$ -$ 8,260,937
Other taxes 2,170,196 --2,170,196
Charges for services 1,648,315 -5,546 1,653,861
Intergovernmental 1,062,117 --1,062,117
Intragovernmental 856,342 --856,342
Licenses and permits 8,350 -751,857 760,207
Franchise fees 530,165 --530,165
Rents and royalties 231,443 --231,443
Miscellaneous 16,534 -55 16,589
Fines and forfeitures 15,023 -94,055 109,078
Grants, contributions and donations 1,643,406 --1,643,406
Investment earnings 51,163 1,087 5,938 58,188
16,493,991 1,087 857,451 17,352,529
Total Revenues
Expenditures
Current:
Leisure services 820,522 7,132 -827,654
Public safety 7,602,757 -812,080 8,414,837
Transportation 1,391,122 255,000 186,149 1,832,271
General government 2,905,106 --2,905,106
Capital outlay 270,273 2,152,671 133,509 2,556,453
Debt service:
Principal 718,072 --718,072
Interest 166,698 --166,698
13,874,550 2,414,803 1,131,738 17,421,091
Total Expenditures
Excess (Deficiency) of Revenues
2,619,441 (2,413,716) (274,287) (68,562)
Over Expenditures
Other Financing Sources (Uses)
Transfers in --806,231 806,231
Transfers out (994,796) --(994,796)
Proceeds on sale of capital assets 972 --972
(993,824) -806,231 (187,593)
Total other financing sources (uses)
Net change in fund balances 1,625,617 (2,413,716) 531,944 (256,155)
Fund Balances - Beginning (restated) 6,386,262 2,550,094 1,386,719 10,323,075
$ 8,011,879 $ 136,378 $ 1,918,663 $ 10,066,920
Fund Balances - Ending
The accompanying notes are an integral part of these financial statements.
23
VILLAGE OF TEQUESTA, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 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/amortization in the current period.
The details of the difference are as follows:
Capital outlay2,556,453
Depreciation/amortization expense (1,045,826) 1,510,627
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt
consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net position.
Payment on notes payable 561,007
Payment on financed purchases157,065 718,072
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 integral part of these financial statements.
24
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 $ 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
8,443,468 66,747 115,994 8,626,209
Total Current Assets
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
16,507,474 1,977,401 -18,484,875
Total Non-Current Assets
24,950,942 2,044,148 115,994 27,111,084
Total Assets
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
525,670 28,070 -553,740
Total Deferred Outflows of Resources
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
741,397 65,444 43,351 850,192
Total Current Liabilities
Noncurrent Liabilities:
Compensated absences 128,261 641 -128,902
Notes payable 1,952,564 --1,952,564
Net pension liability 183,405 --183,405
Total OPEB liability 183,141 15,685 -198,826
2,447,371 16,326 -2,463,697
Total Noncurrent Liabilities
3,188,768 81,770 43,351 3,313,889
Total Liabilities
Deferred Inflows of Resources
Deferred inflows -pensions 891,769 42,400 -934,169
891,769 42,400 -934,169
Total Deferred Inflows of Resources
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 these financial statements.
25
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Business-type Activities
Nonmajor
Water Refuse &
Fund Stormwater Recycling Total
Operating Revenues
Charges for services:
Metered water sale $ 6,579,570 $ -$ -$ 6,579,570
Stormwater fees -490,267 -490,267
Refuse and recycling fees --507,306 507,306
6,579,570 490,267 507,306 7,577,143
Total Operating Revenues
Operating Expenses
Cost of sales and services:
Plant production 2,446,029 --2,446,029
Distribution 971,027 --971,027
Stormwater -481,131 -481,131
Purchased services --520,400 520,400
Management services 655,209 86,413 8,707 750,329
Administration 681,882 --681,882
Depreciation/amortization 680,839 147,460 -828,299
5,434,986 715,004 529,107 6,679,097
Total Operating Expenses
1,144,584 (224,737) (21,801) 898,046
Operating Income (Loss)
Non-Operating Revenues (Expenses)
Investment earnings (loss) (6,242) 68 160 (6,014)
Interest expense (116,584) --(116,584)
Gain on disposal of capital assets 6,803 --6,803
Transfers in -188,565 -188,565
Miscellaneous revenue 37,409 7,753 -45,162
Capital contributions 108,464 --108,464
29,850 196,386 160 226,396
Total Non-Operating Revenues, Net
1,174,434 (28,351) (21,641) 1,124,442
Change in Net Position
20,221,641 1,976,399 94,284 22,292,324
Net Position - Beginning
$ 21,396,075 $ 1,948,048 $ 72,643 $ 23,416,766
Net Position - Ending
The accompanying notes are an integral part of these financial statements.
26
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)
1,812,639 (55,771) (19,496) 1,737,372
Net Cash Provided by (Used in) Operating Activities
Cash Flows from Non Capital Financing Activities
Short-term interfund borrowings 45,000 (45,000) --
Transfers from other funds -188,565 -188,565
45,000 143,565 -188,565
Net Cash Provided by Non Capital Financing Activities
Cash Flows from Capital and Related Financing Activities
Acquisition and construction of capital assets (611,167) (64,188) -(675,355)
Cash received from sale of capital assets 6,803 --6,803
Capital contributions - grants 108,464 --108,464
Principal payments on long-term debt (376,729) --(376,729)
Interest paid (95,274) --(95,274)
(967,903) (64,188) -(1,032,091)
Net Cash Used in Capital and Related Financing Activities
Cash Flows from Investing Activities
Purchase of investments (2,459,341) --(2,459,341)
Interest and micsellaneous income 80,082 7,821 160 88,063
(2,379,259) 7,821 160 (2,371,278)
Net Cash Provided by (Used in) Investing Activities
(1,489,523) 31,427 (19,336) (1,477,432)
Net Change in Cash and Cash Equivalents
6,258,898 23,476 132,412 6,414,786
Cash and Cash Equivalents - Beginning
$ 4,769,375 $ 54,903 $ 113,076 $ 4,937,354
Cash and Cash Equivalents - Ending
Adjustments to Reconcile Operating Income (Loss) to Net
Cash Provided by (Used in) Operating Activities
Operating income (loss) $ 1,144,584 $ (224,737) $ (21,801) $ 898,046
Adjustments to reconcile operating Income (Loss) to net
cash provided by (used in) operating activities:
Depreciation/Amortization 680,839 147,460 -828,299
Changes in operating assets, liabilities and deferred inflows/
outflows of resources:
(Increase) decrease in:
Accounts receivable (72,011) 8,092 835 (63,084)
Inventories 421 291 -712
Prepaid items 5,837 405 -6,242
Increase (decrease) in:
Accounts payable 23,135 21,569 1,470 46,174
Accrued liabilities 6,763 335 -7,098
Customer deposits (7,242) --(7,242)
Long-term assets/liabilities 28,363 (9,186) -19,177
Due to other governments 1,950 --1,950
Net Cash Provided by (Used in) Operating Activities $ 1,812,639 $ (55,771) $ (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 integral part of these financial statements.
27
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
27,153,313
Total investments
Contributions receivable 224,133
Accrued interest receivable 38,392
Prepaid items 55,199
Due from broker 240,690
28,267,396
Total Assets
Liabilities
Accounts payable 32,009
Due to broker 11,288
Deferred inflows 92,655
135,952
Total Liabilities
Net Position Restricted for Pension Benefits $ 28,131,444
The accompanying notes are an integral part of these statement.
28
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Pension
Trust
Funds
Additions
Contributions:
State of Florida $ 293,595
Employer 783,931
Employee 366,672
1,444,198
Total Contributions
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)
(115,901)
Less investment expenses
Net Investment Earnings (4,915,953)
(3,471,755)
Total Additions
Deductions
Benefits paid 584,937
Refund of contributions 423,148
Administrative expenses 110,489
1,118,574
Total Deductions
(4,590,329)
Change in Net Position
Net Position Restricted for Pension Benefits
32,721,773
Beginning of year
End of year $ 28,131,444
The accompanying notes are an integral part of these statement.
29
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
icant 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 businesstpe activities, which rely to a significant extent on fees and
charges to external customers for support.
B. Reporting Entity
The Village of Tequesta, Florida (the Village) is a municipal corporation organized in 1957
pursuant to Special Act 57-1915, Laws of Florida. The Village has a Council-Manager form of
government governed by a five (5) member Council elected at large. Each year, the Council
appoints one of its members Mayor, to serve at th
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
statements to be misleading or incomplete. The Village is financially accountable for a component
unit if it appoints a voting majority of the organid 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.
While separate government-wide and fund financial statements are presented, they are interrelated.
Both sets of statements distinguish between the g overnmental and businesstpe activities of the
Village. The governmental activities column incorporates data from governmental funds while
business-type activities incorporate data from the
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
tions of the government. Elimination of these
30
VILLAGE OF TEQUESTA, 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 capi
governmental and business-type activities. Governmental activities are those supported by taxes
and intergovernmental revenues. usinesstpe 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. irect epenses are those
that are clearly identifiable with a specific function or segment. Program revenues include 1)
charges for goods or services that are recovered directly from customers for services rendered and
2)grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
The fund financial statements provs funds, including its fiduciary
funds. Separate statements for
presented. The emphasis of fund financial statements is on major governmental and enterprise
funds, each displayed in a separate column. All remaining governmental and enterprise funds are
aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds
are reported as separate columns in the fund financial statements. Fiduciary funds are presented
apart from major and nonmajor funds.
The Village reports the following major governmental fund:
The G eneral Fund It accounts for all financial resources
of the general government, except those accounted for in another fund.
The Capital Proects 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 ater Fund, which accounts for the activities of the water utility, which includes the
processing and distribution of potable water to Village residents and some surrounding
communities, and the Stormwater Utilit Fund, which accounts for the construction and
Additionally, the Village reports the following fund type:
The pension trust funds account for the activities of the Public Safety
nds, 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
31
VILLAGE OF TEQUESTA, 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
business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In
fund financial statements these amounts are reported at gross amounts as transfers in/out. While
reported in fund financial statements, certain eliminations are made in the preparation of the
government-wide financial statements. Transfers between the funds included in governmental
activities are eliminated so that only the net amount is included as transfers in the governmental
activities column. Similarly, balances between the funds included in business-type activities are
eliminated so that only the net amount is included as transfers in the business-type activities
column.
E. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement
focus and basis of accounting. Measurement focus indicates the type of resources being measured
such as or . 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
and the . Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
The governmental fund financial statements are reported using the
and the . 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.
32
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
The proprietary funds are reported using the and the
for reporting its assets and liabilities and deferred inflows and outflows
of resources (as described previously).
The pension trust funds are reported on the accrual basis of accounting. Plan member and state
contributions are recognized as revenues in the period that the contributions are due. Employer
contributions to each Plan are recognized when due and the employer has made a formal
commitment to provide the contributions. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan. All plan investments are reported at fair value,
except for a money market fund which is reported at amortized cost; securities traded in the
over-the-counter market and listed securities for which no sales were reported on that date are
valued at the last reported bid price. Securities without an established fair value are reported at
estimated fair value. Purchases and sales of securities are recorded on a trade-date basis.
F. Budgetary Information
1. Budgetary Basis of Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles.
The appropriated budget is prepared by fund, function and department. Per established procedures
approved by the Village Council, the designated budget officer may appr
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 th budget requires the Village Council to approve
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-app
budget pursuant to state regulations.
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash
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.
33
VILLAGE OF TEQUESTA, 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
Improvements
Infrastructure
Machinery and equipment
Intangibles
Other
34
VILLAGE OF TEQUESTA, 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
. This separate financial statement element represents a consumption of net assets that
applies to a future period(s) and will 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
. 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 belicy 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
35
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
which the resources are considered to be applied. It is the Villag
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 GASB
. This statement enhances the usefulness of
fund balance information by providing clearer fund balance classifications that can be more
consistently applied and by clarifying the existing governmental fund type definitions. In the fund
financial statements, governmental funds report classifications that comprise a hierarchy based
primarily on the extent to which the Village is bound to honor constraint of the specific purposes
for which amounts in those funds can be spent.
The Village reports the following fund classifications:
Nonspendable fund balance. Nonspendable fund balances are amounts that cannot be spent
because they are either not in spendable form such as inventory or legally or contractually required
to be maintained intact such as a perpetual trust.
Restricted fund balance. Restricted fund balances are amounts that are constrained by the
imposition externally by creditors, grantors, or laws or regulations of other governmental agencies
or imposed by law through constitutional provisions or enabling legislation.
Committed fund balance. Those amounts can only be used for specific purposes determined by a
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
riated 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
36
VILLAGE OF TEQUESTA, 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 Expenditures/Expenses
1. Program Revenues
Amounts reported as 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
st
on assessed property value at January 1 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 1st and discounts are available for payments made in the following months; November
st
4%, December 3%, January 2% and February 1%. Taxes become delinquent on April 1. 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
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
te 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.
37
VILLAGE OF TEQUESTA, 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 revenues and expenses from items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprie
principal operating revenues of the water fund, refuse and recycling fund and stormwater fund are
charges to customers for sales and services. The water fund also recognizes as operating revenue,
the portion of tap fees intended to recover the cost of connecting new customers to the system.
Operating expenses for the enterprise funds include the cost of sales and services, administrative
expenses and depreciation on capital assets. All revenues and expenses not meeting this definition
are reported as non-operating revenues and expenses.
I. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions
that affect certain reported amounts of assets and deferred outflows of resources and liabilities and
deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenditures/expenses during the
reporting period. Actual results could differ from those estimates.
J. Implementation of new GASB Pronouncements
In June 2017, GASB issued Statement No. 87, , 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 balanc
and similarly increased the governmental activities net position of the Statement of Activities.
In May 2019, GASB issued Statement No. 91, , 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, , 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, , and
Implementation Guide No. 2019-3, , for interim financial reports; (2) Reporting of
38
VILLAGE OF TEQUESTA, 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,
, and Amendments to Certain
Provisions of GASB Statements 67 and 68, as amended, and No. 74,
, as amended, to reporting assets
accumulated for post-employment benefits; (4) The applicability of certain requirements of
Statement No. 84, , 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, , 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 deri
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,
, 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
ance for accounting and financial reporting for
requirements of this Statement will improve
financial reporting by establishing the definis 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,
, 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
39
VILLAGE OF TEQUESTA, 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.
40
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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
andas reported in the
government-wide statement of net position. One element of that reconciliation explains that
ntal activities are not financial resources and, therefore are not
nt 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 progress18,750
Capital assets being depreciated:
Buildings, net10,812,921
Improvements other than buildings, net813,751
Infrastructure, net3,838,690
Machinery and equipment, net1,239,175
Other K-9, net7,338
Net Adjustment to Increase Fund Balance-
Total Governmental Funds to Arrive at
$ 17,364,642
Net Position - Governmental Activities
Another element of that reconciliation explains es, including bonds/notes
payable, are not due and payable in the current pe
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
$ 7,876,801
41
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
All Activities and Funds
A. Cash Deposits with Financial Institution
In the case of deposits, this is the risk that in the event of a bank
qualified public depositories (QPD) pursuant to State of Florida Statutes, Chapter 280,
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
on 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,
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 Interlocal
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
unt balance (amortized cost) in the pool. These
pools are not insured by FDIC or any other governmental agency.
42
VILLAGE OF TEQUESTA, 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 3,824,020 AAAm 23.12%
Florida Safe 4,360,339 AAAm 26.36%
Total Deposits 11,641,175
Certificates of deposit 2,000,000 2.4 years 12.09%
US Government Agencies 2,902,171 2.4 years AA 17.54%
Total Investments 4,902,171
Total Deposits and Investments $ 16,543,346 100%
Interest Rate Risk - Interest rate risk exists when there is a possibility that changes in interest rates
vestment 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 obl
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 ar
highest rating for 2a7 investment pools.
Concentration of Credit Risk
municipal bonds to 100% for US Treasuries. At
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, I50:
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 I50 are described below:
43
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Level 1es in active markets for identical assets.
Level 2at 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
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 $ 2,902,172 $ -$ 2,902,172 $ -
Total fixed income 2,902,172 -2,902,172 -
2,902,172 $- $ 2,902,172 $-
Total investments at fair value
Investment at net asset value (NAV)
FL Class 3,824,020
FL Safe4,360,339
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 Deposits3,456,815
Total cash equivalent and
$16,543,346
investments
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 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
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:
44
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Level 1 - investments reflect unadjusted quoted prices in active markets for identical assets;
Level 2 - investments reflect prices that are based on inputs that are either directly or indirectly
observable for an asset (including quoted prices for similar assets), which may include
inputs in markets that are not considered to be active;
Level 3 - investments reflect prices based upon unobservable inputs for an asset.
The investment pricing transparency determines the category within the hierarchy and should not
be observed at the investment risk. The custodian bank's (primary external pricing vendors) quoted
prices were used to determine level classification based on the fair value hierarchy.
Debt and equity securities classified as Level 1 of the fair value hierarchy are valued using quoted
prices at September 30, 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 usinThe 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 890,391 890,391
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
16,897,730 $13,209,694 $3,688,036 $-
Total investments at fair value
Redemption Redemption
Frequency Notice Period
Investment at net asset value (NAV)
Real Estate Fund 2,814,046 Quarterly 30 days
$19,711,776
Total investments
45
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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
276,164
Equivalents
Equities
Mutual Funds 12,570,550 62.89% 61.65%
12,570,550
Total Equities
Fixed Income
Corporate Bonds: 7.10 years
Bonds 419,679 A1 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%
4,327,180
Total Fixed Income
Real Estate Fund 2,814,046 14.08% 13.80%
19,711,776
Total investments
$ 19,987,940 100.00% 98.03%
Total cash and investments
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.
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.
46
VILLAGE OF TEQUESTA, 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 common stock and convertible bonds (not to exceed 70%
of the fund assets at fair value). Mortgage-backed securities issued by non-government
entities are limited to 15% of the fixed income portfolio.
Limiting investments in foreign securities (not to exceed 25% of the value at cost of the
fund).
Custodial Credit Risk - the risk that, in the event of the failure of the counterparty, the plan will not
be able to recover the value of its investments or collateral securities that are in the possession of an
licy 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
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 ), 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 2021, the overall annual money-weighted rate of
return (long-term expected real rate of return) on the Public Safety Pension Plan investments (both
)% 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.
47
VILLAGE OF TEQUESTA, 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%
65% 60%-70%
Total Equities
Domestic Core Fixed Income 20% 15%-25% 2.5% 2.5%
Diversified Fixed Income 5% 0%-10% 3.5% 3.5%
25% 20%-30%
Total Fixed Income
Core Real Estate 10% 5%-15% 4.5% 4.5%
oyees' Pension Trust Fund
Investment Policy Statement
Statement and directs that it applies to all assets under their control. It is
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
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
ion Trust Fund were in compliance with the
investment policy.
Fair Value Hierarchy
The Plan categorizes its fair value measurement within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on valuation input used to
measure the fair value of an asset:
Level 1 - investments reflect unadjusted quoted prices in active markets for identical assets;
Level 2 - investments reflect prices that are based on inputs that are either directly or indirectly
observable for an asset (including quoted prices for similar assets), which may include
inputs in markets that are not considered to be active;
Level 3 - investments reflect prices based upon unobservable inputs for an asset.
The investment pricing transparency determines the category within the hierarchy and should not
be observed as the investment risk. The custodian bank's (primary external pricing vendors) quoted
prices were used to determine level classification based on the fair value hierarchy.
Debt and equity securities classified as Level 1 of the fair value hierarchy are valued using quoted
prices at September 30, 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.
48
VILLAGE OF TEQUESTA, 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 th
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
6,373,441 $ 5,277,427 $ 1,096,014 $ -
Total investments at fair value
Redemption Redemption
Frequency Notice Period
Investment at net asset value (NAV)
Real Estate Fund 1,068,096 Quarterly 30 days
$7,441,537
Total investments
49
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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 Term Money Market Fund 255,500 3.31% 3.30%
279,506
Total Cash and Cash equivalents
Equities
Common stocks 1,802,307 23.34% 23.28%
Mutual funds 2,736,506 35.44% 35.34%
4,538,813
Total Equities
Fixed Income
Corporate Bonds: 1.29 years
Bonds 44,249 A1 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%
1,834,628
Total Fixed Income
Real Estate Fund 1,068,096 13.83% 13.80%
7,441,537
Total Investments
$ 7,721,043 100.00% 99.72%
Total Cash and Investments
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.
50
VILLAGE OF TEQUESTA, 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
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.
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
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
vestment 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 securi
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 ), mutual funds (registered
in the U.S.), or Yankee bonds (traded in U.S. dollars).
The investment policy permits a maximum of 25% of the fair value of the fund securities
(including equities and fixed income securities) to be invested in foreign securities.
At September 30, 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 th
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.
51
VILLAGE OF TEQUESTA, 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%
65% 60%-70%
Total Equities
Domestic Core Fixed Income 20% 15%-25% 2.5% 2.5%
Diversified Fixed Income 5% 0%-10% 3.5% 3.5%
25% 20%-30%
Total Fixed Income
Core Real Estate 10% 5%-15% 4.5% 4.5%
C. Receivables
Below is the detail of receivables for the general, water, and nonmajor governmental and enterprise
funds including the applicable allowances for uncollectible accounts:
Capital Storm-Nonmajor
General Projects Water water Funds Total
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 fees58,752 ----58,752
Other taxes 65,894 ----65,894
Interest 25,827 -23,660 --49,487
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
$ 2,157,188 $ 17 $ 911,791 $ 11,003 $ 2,960 $ 3,082,959
Receivables
52
VILLAGE OF TEQUESTA, 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 $ -$ -$ 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 8,004,908 6,688,744 - 14,693,652
Improvements other than buildings 2,509,454 -- 2,509,454
Infrastructure 5,223,601 42,114 - 5,265,715
Machinery and equipment 4,654,716 342,917 - 4,997,633
Intangibles 274,455 -(274,455) -
Other K-9 20,549 -- 20,549
Total Capital Assets Being Depreciated/Amortized 20,687,683 7,073,775 (274,455) 27,487,003
Less accumulated depreciation/amortization for:
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) $ 17,364,642
Depreciation/amortization expense was charged to the functions/programs of the governmental
activities of the Village as follows:
Governmental Activities
General government $ 125,024
Public safety 502,805
Transportation 185,486
Leisure services 232,511
$ 1,045,826
Total Depreciation/Amortization Expense - Governmental Activities
53
VILLAGE OF TEQUESTA, 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 $ 83,335 $ -$ -$ 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 972,980 --972,980
Improvements other than buildings 58,720 --58,720
Infrastructure 37,644,930 57,970 -37,702,900
Machinery and equipment 2,094,567 -(23,273) 2,071,294
Intangibles 129,096 -(80,447) 48,649
Leased machinery and equipment 16,288 --16,288
Total capital assets being depreciated/amortized 40,916,581 57,970 (103,720) 40,870,831
Less accumulated depreciation/amortization for:
Buildings (748,724) (15,211) -(763,935)
Improvements other than buildings (34,058) (2,349) -(36,407)
Infrastructure (20,391,542) (712,183) -(21,103,725)
Machinery and equipment (1,785,762) (87,261) 23,273 (1,849,750)
Intangibles (121,058) (8,038) 80,447 (48,649)
Leased machinery and equipment (1,629) (3,257) -(4,886)
(23,082,773) (828,299) 103,720 (23,807,352)
Total Accumulated Depreciation/Amortization
17,833,808 (770,329) -17,063,479
Total Capital Assets Being Depreciated/Amortized, Net
$ 18,133,873 $ (152,944) $-$ 17,980,929
Business-type Activity Capital Assets, Net
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 $ 680,839
Stormwater 147,460
Total depreciation/amortization expence $ 828,299
54
VILLAGE OF TEQUESTA, 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:
Other Total
General Governmental Governmental
Fund Funds Funds
Salary and employee benefits $ 332,304 $ 7,999 $ 340,303
Other 11,648 -11,648
$ 343,952 $ 7,999 $ 351,951
Total Accrued Liabilities
F. Pension Obligations
Florida Retirement System (FRS) - a Statewide Local Government Em
System (SLGERS)
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
ty benefits, annual cost of living adjustments
and death benefits to plan members and beneficiaries. A post-employment health insurance subsidy
is also provided to eligible employees. Benefits are established by Chapter 121, Florida Statutes
and Chapter 22B, Florida Administrative Code. Amendments to the law can only be made by an
act of the Florida Legislature.
The State of Florida issues a publicly available financial report that includes financial statements
and required supplementary information for the FRS. The latest available report may be obtained
by writing to the State of Florida Division of Retirement, Department of Management Services,
P.O. Box 9000, Tallahassee, Florida 32315-9000 or visiting the website at
ww.dms.myflorida.com/workforce_operations/retirement/publications.
The FRS is a cost-sharing multiple-employer qualified defined benefit pension
plan, with a Deferred Retirement Option
uted 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
55
VILLAGE OF TEQUESTA, 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
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 Servi
members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk
Administrative Support class members. Also, the final average compensation for all these members
will be based on the eight highest years of salary.
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension
Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual
cost-of-living adjustment is three percent per year. If the member is initially enrolled before July 1,
2011, and has service credit on or after July 1, 2011, there is an individually calculated
cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent
determined by dividing the sum of the pre-July 2011 service credit by the total service credit at
retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011,
will not have a cost-of-living adjustment after retirement.
In addition to the above benefits, the DROP program allows eligible members to defer receipt of
monthly retirement benefit payments while continuing employment with a FRS employer for a
period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in
the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants.
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 uniform 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:
56
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Employer (1) Total
Class Employee
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.Governor, 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%
(2) (2) (2)
Reemployed Retiree
Notes: (1) 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.
Tto 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 determined 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
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
oportionate share was 0.000410833, which was a
decrease of 0.0009352% from its proportionate share measured as of June 30, 2021.
57
VILLAGE OF TEQUESTA, 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 -
$ 49,367 $ (291,789)
Total
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 r
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
58
VILLAGE OF TEQUESTA, 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 Ju
Valuation Date July 1, 2022
Measurement date June 30, 2022
Inflation 2.40%
Salary increases including inflation 3.25%
Mortality PUB-2010 base table varies by member category and sex,
projected generationally with Scale MP-2018 details in
valuation report
Actuarial cost method Individual Entry Age
Sensitivity Analysis
The following presents the Vnet pension liability of the FRS, calculated using
the discount rate of 6.70%, as we
calculated using a discount rate that is one percentage point lower (5.70%) or one percentage point
higher (7.70%) than the current rate.
1% Current 1%
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.
59
VILLAGE OF TEQUESTA, 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%
net position is available in the separately issued FRS Pension Plan and Other State-Administered
Systems Comprehensive Annual Financial Report.
age 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) Program
Plan Description
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 Provided022, eligible retirees and beneficiaries
received a monthly HIS payment equal to the number of years of creditable service credited at
retirement multiplied by $5. The minimum payment is $30 and maximum payment is $150 per month,
pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under
one of the state-administered retirement system must provide proof of eligible health insurance
coverage, which may include Medicare.
Contributions, 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.
totaled $1,355 for the fiscal year ended September
30, 2022.
60
VILLAGE OF TEQUESTA, 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 GASB
Measurement Date using standard actuarial roll forward procedures. The discount rates used at the
two liability measurement dates differ due to changes in the applicable municipal bond index between
dates.
At September 30, 2022, the Village reported a liability of $30,542 for its proportionate share of the
Pension Plproportionate share of the net pension liability was
e 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) $ 927 $ (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 44 -
Village Pension Plan contributions subsequent to
the measurement date 347 -
Total $ 3,069 $ (83,401)
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:
61
VILLAGE OF TEQUESTA, 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-2010 with Projection Scale MP-2018;
details in valuation report
Actuarial cost method Individual Entry Age
Sensitivity Analysis
The following presents the net pension liability of the HIS, calculated using the discount rate of
3.54%, as well as whay 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.
1% 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 regardin
position is available in the separately issued FRS Pension Plan and Other State-Administered Systems
Comprehensive Annual Financial Report.
62
VILLAGE OF TEQUESTA, 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
and the . 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 empl
Fund receives contributions that may not be used to pay benefits of all employee classes, therefore,
two separate trust funds, the Fi
Pension Trust Fund (PPTF) are reflected separately in the financial statements, as well as the General
nefit 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
27 23 70
Total
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.
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.
63
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
FPTF PPTF GPTF
Actuarial Valuation Date Oct. 1, 2020 Oct. 1, 2020 Oct. 1, 2020
Measurement Date of the net pension liability Sep. 30, 2021 Sep. 30, 2021 Sep. 30, 2021
Village's Fiscal Year Ended Date for
Reporting Purposes Sep. 30, 2022 Sep. 30, 2022 Sep. 30, 2022
Pension Expense
Fiscal Year Ended September 30, 2022
(Based on Measurement Period Ended September 30, 2021)
FPTF PPTF GPTF
Service Cost $ 470,978 $ 327,856 $ 470,535
Interest on the Total Pension Liability 1,059,130 364,708 497,428
Employee Contributions (made negative for
additions here) (104,656) (75,796) (171,792)
Projected Earnings on Plan Investments (made
negative for additions here) (930,408) (438,639) (473,599)
Administrative Expense 26,570 28,748 40,526
Other Changes in Plan Fiduciary Net Position
(Contributions Transferred from 401(a) Plan) -101,437 -
Other Changes in Total Pension Liability
(Increase in State Contribution Reserve) -(101,437) -
Recognition of Outflow (Inflow) of Recourses
due to Liabilities 32,049 (92,810) (47,335)
Recognition of Outflow (Inflow) of Recourses
due to Assets (412,726) (178,658) (253,230)
$ 140,937 $ (64,591) $ 62,533
Total Pension Expense
64
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
The deferred 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:
Deferred Outflows Deferred Inflows of
of Resources Resources
Difference between expected and actual experience $ 292,819 $ 148,661
Changes in assumptions 263,460 315,877
Net difference between projected and actual
earnings on pension plan investments-1,397,365
Contribution subsequent to measurement date 523,573 -
Total $ 1,079,852 $ 1,861,903
Police:
Deferred Outflows Deferred Inflows of
of Resources Resources
Difference between expected and actual experience $ 4,465 $ 238,027
Changes in assumptions 36,574 77,617
Net difference between projected and actual
earnings on pension plan investments -643,755
Contribution subsequent to measurement date 203,707
Total $ 244,746 $ 959,399
General:
Deferred Outflows Deferred Inflows of
of Resources Resources
Difference between expected and actual experience $ 96,834 $ 402,470
Changes in assumptions 183,842 90,070
Net difference between projected and actual
earnings on pension plan investments -814,115
Contribution subsequent to measurement date 350,247 -
Total $ 630,923 $ 1,306,655
65
VILLAGE OF TEQUESTA, 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 PPTF GPTF
2023 $ (322,878) $ (183,894) $ (240,406)
2024 (278,034) (180,778) (220,336)
2025 (338,333) (220,590) (286,934)
2026 (328,938) (204,585) (245,272)
2027 (7,162) (40,347) (33,031)
Thereafter (30,279) (88,166)-
$ (1,305,624)$ (918,360)$ (1,025,979)
Total
Net Pension Liability (Asset)
Below is a summary of components of the net pension liability (asset), by Plan, which was
measured as of September 30, 2021 (measurement date in accordance with GASB Statement No.
68).
Fire Police General
Measurement Date September 30, 2021 2021 2021
Total Pension Liability $ 15,707,456 $ 5,225,838 $ 7,609,284
Plan Net Position 16,221,717 7,621,215 8,878,840
Net Pension Liability (Asset) $ (514,261) $ (2,395,377) $ (1,269,556)
Plan Net Position as a % of Total
103.27% 145.84% 116.68%
Pension Liability
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 $ 16,613,857 $ 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
82.74% 118.00% 91.08%
Pension Liability
66
VILLAGE OF TEQUESTA, 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
$ 14,767,838 $ 13,058,965 $ 1,708,873
Balances at September 30, 2020
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)
$ 15,707,456 $ 16,221,717 $ (514,261)
Balances at September 30, 2021
67
VILLAGE OF TEQUESTA, 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
$ 4,906,802 $ 6,171,161 $ (1,264,359)
Balances at September 30, 2020
Changes for the year:
Service cost 327,856 -327,856
Interest 364,708 -364,708
Changes of benefit terms ---
Differences between expected
and actual experience (135,030) -(135,030)
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)
$ 5,225,838 $ 7,621,215 $ (2,395,377)
Balances at September 30, 2021
68
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
GENERAL EMPLOYEES' PENSION TRUST
CHANGES IN NET PENSION LIABILITY
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
$ 7,280,856 $ 7,129,156 $ 151,700
Balances at September 30, 2020
Changes for the year:
Service cost 470,535 -470,535
Interest 497,428 -497,428
Differences between expected
and actual experience (332,590) -(332,590)
Changes of Assumptions (109,651) -(109,651)
Contributions - employer and State -380,003 (380,003)
Contributions - member -171,792 (171,792)
Net investment income - 1,435,710 (1,435,710)
Benefit payments, including refunds
of employee contributions (197,294) (197,294) -
Administrative expense -(40,527) 40,527
Net changes 328,428 1,749,684 (1,421,256)
$ 7,609,284 $ 8,878,840 $ (1,269,556)
Balances at September 30, 2021
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 pensioary 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.
69
VILLAGE OF TEQUESTA, 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
ity, 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 welln liability would be if it were
calculated using a single discount rate that is 1-percentage-point lower or 1-percentage-point higher
(amounts in parenthesis represent a net pension asset).
Current Single
1% Discount Rate 1%
Decrease Assumption Increase
Fiscal Year Ended September 30, 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 1%
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' $ 4,774,365 $ 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
Summary of Plan Provisions
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article III, Division 1, Section 2-61 (b), and was most recently amended under
Ordinance No. 02-19 , passed and adopted on March 14, 2019. The Plan is also governed by
certain provisions of Chapters 175 and 185, Florida Statutes, Part VII, Chapter 112, Florida
70
VILLAGE OF TEQUESTA, 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 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time police officers and all full-time firefighters are eligible for membership on the date of
employment.
F. Credited Service
Service is measured as the total number of years and completed months of a year as a police officer
or firefighter with the Village. No service is credited for any periods of employment for which the
member received a refund of their contributions.
G. Compensation
Total cash remuneration for services rendered as a police officer or firefighter. For firefighters and
police officers hired before October 1, 2010, overtime hours are limited to 300 hours per year,
effective October 1, 2013 for firefighters and October 1, 2014 for police officers. For firefighters
and police officers hired before October 1, 2010, payments for unused leave earned after October
1, 2013 for firefighters and October 1, 2014 for police officers are excluded from pensionable
salary. For firefighters hired on or after October 1, 2010, fixed monthly remuneration including
regular earnings, vacation pay and sick pay but excluding lump sum payments, overtime, bonuses,
incentives and longevity.
H. Average Final Compensation (AFC)
The average of Compensation over the highest 5 years during the last 10 years of Credited Service.
I. Normal Retirement
-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.
- For police officers hired before February 1, 2013 and firefighters hired before August 14,
71
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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
:
3.0% of AFC multiplied by years of Credited Service
:
2.75% of AFC multiplied by all years of Credited Service
10 Years Certain and Life thereafter; other options are also available.
COLA: None
All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
J. Early Retirement
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).
The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early
Retirement date precedes the Normal Retirement date.
- 10 Years Certain and Life thereafter; other options are also available.
COLA: None
All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
72
VILLAGE OF TEQUESTA, 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
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.
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.
- 10 Years Certain and Life thereafter.
COLA: None
- All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
M. Non-Service Connected Disability
-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.
- 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.
- 10 Years Certain and Life thereafter.
COLA: None
- All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
N. Death in the Line of Duty
- Members are eligible for survivor benefits regardless of Credited Service.
the date of death.
- Payable for the life of the beneficiary.
73
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
COLA: None
- All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year
maximum of $600. The supplemental benefit ceases upon the later of the death of the retired
member or beneficiary.
O. Other Pre-Retirement Death
- 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).
- The beneficiary will receive the actuaria
Retirement Benefit taking into account compensation earned and service credited as of the date of
death.
- Payable for the life of the beneficiary.
COLA: None
- All retirees and beneficiaries receiving pension benefits will be paid a
supplemental benefit equal to $20 for each year
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
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
-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).
al Retirement Benefit as of the date of
al Retirement date. Alternatively, members can
elect a reduced Early Retirement benefit any time after age 50.
74
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
- 10 Years Certain and Life thereafter; other options are also available.
COLA: None
- Once in pay status, all retirees and beneficiaries receiving pension benefits
will be paid a supplemental benefit equal to $20 for each year of the me
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
- 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 Cr
firefighters hired on or after August 14, 2015) may elect a refund in lieu of the vested benefits
otherwise due.
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.
75
VILLAGE OF TEQUESTA, 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
- 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.
C 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.
- Police officers: The earlier of 5 years of participation in the DROP or 30
years of employment. Firefighters: 5 years.
- 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%.
- 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 Safeust Fund liability if continued beyond the
availability of funding by the current funding source.
AA. Changes from Previous Valuation
None
The (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.
76
VILLAGE OF TEQUESTA, 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 $ 185,583
Investments
Equities 8,449,900
Fixed income2,908,722
Real Estate Funds1,891,597
Total investments13,250,219
Contributions receivable 208,464
Accrued interest receivable17,753
Prepaid items26,634
Due from broker161,791
13,850,444
Total Assets
Liabilities
Accounts payable 12,141
12,141
Total Liabilities
Deferred Inflows of Resourses
Deferred inflows 92,655
92,655
Total Deferred Inflows of Resourses
Net Position Restricted for
$ 13,745,648
Pension Benefits
77
VILLAGE OF TEQUESTA, 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 $ 200,648
Employer322,925
Employee
100,398
623,971
Total Contributions
Investment earnings
Net appreciation in fair value of investment (2,804,721)
Gain on sale of investments 229,809
Interest and dividends240,754
Total investment earnings (2,334,158)
Less investment expenses (41,678)
(2,375,836)
Net investment earnings
(1,751,865)
Total Additions
Deductions
Benefits paid 293,908
Refund of contributions399,237
Administrative expenses31,059
724,204
Total Deductions
(2,476,069)
Change in Net Position
Net Position Restricted for
Pension Benefits
Beginning of year 16,221,717
End of year $13,745,648
78
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
The (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 $ 90,581
Investments
Equities 4,120,650
Fixed income1,418,458
Real Estate Funds922,449
Total investments6,461,557
Contributions receivable 4,373
Accrued interest receivable8,664
Prepaid items8,018
Due from broker78,899
6,652,092
Total Assets
Liabilities
Accounts payable 8,750
8,750
Total Liabilities
Net Position Restricted for
$ 6,643,342
Pension Benefits
79
VILLAGE OF TEQUESTA, 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 $ 92,947
Employer110,759
Employee84,799
288,505
Total Contributions
Investment earnings
Net appreciation in fair value of investments (1,344,403)
Gain on sale of investments 107,785
Interest and dividends114,618
Total investment earnings (1,122,000)
Less investment expenses (27,235)
(1,149,235)
Net investment earnings
(860,730)
Total Additions
Deductions
Benefits paid 64,802
Refund of contributions15,915
Administrative expenses36,426
117,143
Total Deductions
Change in Net Position (977,873)
Net Position Restricted for
Pension Benefits
Beginning of year 7,621,215
End of year $6,643,342
80
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
A. Ordinances
The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida,
Chapter 2, Article III, Division 1, Section 2-61 (a), and was most recently amended under Ordinance
No. 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 1 through September 30
D. Type of Plan
Qualified, governmental defined benefit retirement plan; for GASB purposes it is a single employer
plan.
E. Eligibility Requirements
All full-time general employees who are not classified as police officers or firefighters are eligible
for membership on the date of employment.
F. Credited Service
Service is measured as the 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.
81
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
I. Normal Retirement
ligibilit 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.
enefit 2.0% of AFC multiplied by Credited Service with a maximum benefit equal to 100% of
AFC.
ormal Form of enefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
J. Early Retirement
ligibilit-A member may elect to retire earlier than the Normal Retirement Eligibility upon
attainment of age 50 and 6 years of Credited Service.
enefit - The Normal Retirement Benefit is reduced by 5.0% for each year by which the Early
Retirement date precedes the Normal Retirement date.
ormal Form of enefit - 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
ligibilit- 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.
enefit 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.
ormal Form of enefit - 10 Years Certain and Life thereafter.
COLA: None
82
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
M. Non-Service Connected Disability
ligibilit- 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.
enefit -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.
ormal Form of enefit - 10 Years Certain and Life thereafter.
COLA: None
N. Death in the Line of Duty
ligibilit- Members are eligible for survivor benefits after the completion of 6 or more years of
Credited Service.
enefit ccrued Normal Retirement Benefit taking into
account compensation earned and service credited as of the date of death. The benefit is payable at
ormal Form of enefit - 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 ributions with interest.
O. Other Pre-Retirement Death
ligibilit- Members are eligible for survivor benefits after the completion of 6 or more years of
Credited Service.
enefit accrued Normal Retirement Benefit taking
into account compensation earned and service credited as of the date of death.
ormal Form of enefit - 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 ributions with interest.
P. Post Retirement Death
Benefit determined by the form of benefit elected upon retirement.
83
VILLAGE OF TEQUESTA, 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
ligibilit- A member has earned a non-forfeitable right to Plan benefits after the completion of 6
years of Credited Service.
enefit
Retirement date. Alternatively, members can
elect a reduced Early Retirement benefit any time after age 50.
ormal Form of enefit - 10 Years Certain and Life thereafter; other options are also available.
COLA: None
Members terminating employment with less than 6 years of Credited Service will receive a refund
of their own accumulated contributions with interest.
S. Refunds
ligibilit 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.
enefit ons 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
th
W. 13 Check
Not Applicable
84
VILLAGE OF TEQUESTA, 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
availability of funding by the current funding source.
Z. Changes from Previous Valuation
There have been no changes since the last valuation.
The 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 $ 279,505
Investments
Equities 4,538,813
Fixed income 1,834,628
Real Estate Funds 1,068,096
Total investments 7,441,537
Contributions receivable 11,296
Accrued interest receivable 11,975
Prepaid items 20,547
7,764,860
Total Assets
Liabilities
Accounts payable 11,118
Due to broker 11,288
22,406
Total Liabilities
Net Position Restricted for
$ 7,742,454
Pension Benefits
85
VILLAGE OF TEQUESTA, 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 $ 350,247
Employee 181,475
531,722
Total Contributions
Investment earnings
Net appreciaton in fair value of investments (1,552,500)
Gain on sale of investments 61,730
Interest and dividends 146,876
Total investment earnings (1,343,894)
Less investment expenses (46,988)
(1,390,882)
Net investment earnings
Miscellaneous -
(859,160)
Total Additions
Deductions
Benefits paid 226,227
Refund of contributions 7,996
Administrative expenses 43,004
277,227
Total Deductions
(1,136,387)
Change in Net Position
Net Position Restricted for
Pension Benefits
Beginning of year 8,878,841
End of year $ 7,742,454
86
VILLAGE OF TEQUESTA, 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
$ 4,179,194 $ 183,405 $ 2,007,957 $ 4,503,147 $ 161,925
Total
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
beneficial ownership of Plan assets held in the Empower Retirement Trust shall be held for the further
exclusive benefit of the Plan participants. The Village Manager is the coordinator for the Plan and is
authorized to execute all necessary agreements with the Empower Retirement Trust incidental to the
administration of the Plan. The Village serves as Trustee under the Plan.
In a defined contribution plan, benefits depend solely on amounts contributed to the Plan plus
investment earnings.
The Plan covered the Police Chief and Assistant Police Chief. Employees must designate a mandatory
participation contribution between the range of 1% to 12% for the Plan year as a condition of
participation in the Plan. The participant shall not have the right to discontinue or vary the rate after
becoming a Plan participant. Newly eligible employees have an election window of 30 days from the
date of eligibility to make the election to participate in the mandatory contribution portion of the Plan
which will begin the first of the month following the end of the election window. This election is
irrevocable and remains in force until the employee terminates employment or ceases to be eligible to
participate in the Plan.
The Village contributes 10% of compensation. Employees are immediately vested in the Plan. Plan
provisions are established and may be amended by the Village.
The Village does not hold or administer resources of the Plan and consequently, the Plan does not
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,
s contributions were $27,720.
87
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
G. Other Postemployment Benefits (OPEB)
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 Villafit 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
attainment of age 65 (or until such time at which retiree discontinues coverage under the Village
sponsored plans, if earlier).
Funding Polic
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
Summar of Membership Information. The following table provides a summary of the number of
participants in the plan at the measurement date of September 30, 2021:
Inactive members or beneficiaries currently receiving benefits 6
Inactive members entitled to but not yet receiving benefits 0
Active members 92
Total 98
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 tion. 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 30, 2021.
88
VILLAGE OF TEQUESTA, 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).
$ 447,273
Total OPEB Liability - Beginning (September 30, 2020)
Service cost 63,270
Interest on the Total OPEB Liability 12,060
Changes in assumptions and other inputs 411,041
Benefit payments (20,244)
466,127
Net change in Total OPEB Liability
$ 913,400
Total OPEB Liability - Ending (September 30, 2021)
In addition, the Village reported an deferred outflow of resources related to OPEB from the following
sourses:
Deferred Outflows Deferred Inflows of
of Resources Resources
Changes in assumptions and other inputs $364,332 -
$
Benefit payments after the measurement date48,910 -
Total $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 Ending Amount
2023 $ 46,709
2024 46,709
2025 46,709
2026 46,709
2027 46,709
Thereafter 130,787
$ 364,332
Actuarial methods, assumptions and other inputs. The total OPEB liability was determined using
actuarial assumptions outlined below.
Valuation Date September 30, 2021
Measurement Date 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.
89
VILLAGE OF TEQUESTA, 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 30, 2021:
- 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
using a discount rate of 2.19%, as well as what the
ated using a discount rate that is one percent lower
or one percent higher.
90
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Sensitivity of Total OPEB Liability to the Discount Rate Assumption
Current Discount Rate
1% Decrease Assumption 1% Increase
1.19% 2.19% 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
calculated using the assumed trend rates as well as
re calculated using a trend rate that is one percent
lower or one percent higher.
Sensitivity of Total OPEB Liability to the Healthcare Cost Trend Rate Assumption
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
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 $ 1,907,912
Total Major Funds 1,907,912
Non-Major Funds -
Total Governmental Activities $ 1,907,912
Business-type Activities
Major funds
Water Utility (variety of projects) $ 427,967
Total Major Funds 427,967
Non-Major Funds - Stormwater (variety of projects) 127,347
Total Business-type Activities $ 555,314
All commitments are financed from existing Village resources.
Village uses encumbrance accounting and, therefore, construction and commitments noted above
represent outstanding encumbrances at September 30, 2022.
91
VILLAGE OF TEQUESTA, 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 leased to Palm Beach County for 50 years for an annual rent of one dollar. In the event the
Village terminates the lease before the end of 50 years, the Village must reimburse Palm Beach
County a depreciated value using a useful life of 25 years based on an initial value of $405,000
calculated on a straight-line basis.
se and Recycling Collection
The Village's agreement with Waste Management, Inc. of Florida is for initial term for a period of
eight years beginning October 1, 2017 and ending September 30, 2025 with optional renewal for
one additional five year period. With this agreement the Village granted Waste Management the
exclusive franchise for solid waste collection of residential, commercial, industrial and roll-off
refuse, recycling and vegetative waste. The annual change in the collection component is
determined using the Water, Sewer, and Trash Collection CPI published monthly by The Bureau of
Labor Statistics during the most recent previous twelve consecutive months period beginning on
April 1 and ending March 31.
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
n, 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 Vi
retention in each area.
rection, 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 FM
statutory limits. Premiums are based upon risk class and remuneration of covered employees
adjusted by an experience modification factor which includes three prior years of claims history. At
the end of each fiscal year, the plan is audited and the Village can either receive a return of
premium or be required to pay additional premium base upon actual versus estimated payroll.
2021/2022 resulted in a total refund to the Village of $8,062, due
to payroll alterations that impacted the workers' compensation premium.
92
VILLAGE OF TEQUESTA, 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 18th. 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
202458,015
Total minimum payments116,030
Less amount representing interest (2,843)
$113,187
Present Value of Future Minimum Payments
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)
$ 175,891
Present Value of Future Minimum Payments
Financed Purcha
The Village entered into a 60-month agreement with Axon Enterprise, Inc. in the amount of
$31,100 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 11th. 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.
93
VILLAGE OF TEQUESTA, 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)
$ 47,400
Present Value of Future Minimum Payments
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 noteholder 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 2.18% 10/01/2040 $ 6,693,000
$ 6,693,000
Total Government Activities
Business-type Activities
Public Improvement (Refunding) 7/14/2008 6,554,935 3.69% 3/1/2028 $ 2,344,386
$ 2,344,386
Total Business-type Activities
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.
94
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Changes in Long-Term Liabilities
m liabilities for the fiscal year ended September 30, 2022 are as
follows:
Governmental Activities
Beginning Ending Due Within
BalanceAdditions Deletions Balance One Year
Governmental Activities
Note Payable -2021 $ 6,890,000 $ -$ 197,000 $ 6,693,000 $ 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
$ 8,538,948 $ 143,534 $ 878,634 $ 7,803,847 $ 552,805
Total Governmental Activities
* For governmental activities, the liability for compensated absences and pension liabilities are liquidated
by the general fund.
Business-type Activities
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Business-type Activities
Note Payable (2008) $ 2,721,115 $ -$ 376,729 $ 2,344,386 $ 391,822
Compensated absences144,219 18,406 18,723 143,902 15,000
$ 2,865,334 $ 18,406 $ 395,452 $ 2,488,288 $ 406,822
Total Business-type Activities
The debt service requirements for
Governmental Activities
Fiscal Year Ending Promissory Notes
September 30: Principal Interest Total
2023 $
288,000 $ 142,768 $ 430,768
2024 294,000 136,424 430,424
2025 301,000 129,939 430,939
2026 307,000 123,312
430,312
2027 314,000 116,543 430,543
2028-20415,189,000 831,485 6,020,485
$6,693,000
Total$ 1,480,471 $8,173,471
Business-type Activities
Fiscal Year Ending Promissory Notes
September 30: Principal Interest Total
2023 $391,822 $ 79,732 $
471,554
2024 406,556 64,977 471,533
2025420,915 49,309 $470,224
2026 437,238 33,273 $470,511
2027 455,564 16,563 $472,127
2028 232,291 1,819234,110
$2,344,386 $ 245,673 $2,590,059
Total
95
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Total Primary Government Debt
Fiscal Year Ending Total Primary Government Debt
September 30: Principal Interest Total
2023 $ 679,822 $ 222,501 $ 902,323
2024 700,556 201,401 901,957
2025 721,915 179,248 901,163
2026 744,238 156,585 900,823
2027 769,564 133,106 902,670
2028-2041 5,421,291 833,304 6,254,595
$ 9,037,386 $ 1,726,145 $ 10,763,531
Total
M. Fund Balance
Minimum Fund Balance Policy
The Village Council has adopted a financial policy to maintain a minimum level of unassigned fund
balance in the general fund. The target level is set at two months of general fund operating
expenditures (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, essentiall
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 Transfers
The composition of interfund transfers for the fiscal year ended September 30, 2022 is as follows:
Interfund Transfers
Capital Stormwater
ImprovementFund Fund Total
Transfers Out
(1) (2)
General Fund $ 806,231 $ 188,565 $ 994,796
$ 806,231 $ 188,565 $ 994,796
Total Interfund Transfers
(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.
96
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
O. Joint Ventures
The Village, in conjunction with six other municipalities, organized a consortium to provide mutual
fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium
(NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected
contributions. The consortium does not issue separate financial statements. The Village has not
been obligated to contribute any funds to the consortium since its inception in 1999.
nt to Beginning Fund Balance and Net Position
The Village implemented GASB 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$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) $6,386,262 $ 17,940,576
Business-type activities
The implementation of GASB Statement No.87 did not impact business-type activities net position
or results of operations.
97
REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Variance
with Final
Budget
Budgeted Amounts
Actual
Positive
Original Final Amounts (Negative)
Revenues
Ad valorem taxes $ 8,158,070 $ 8,211,040 $ 8,260,937 $ 49,897
168,536
Other taxes 1,910,660 2,001,660 2,170,196
Charges for services 1,507,260 1,535,350 1,648,315 112,965
Intergovernmental 907,320 907,320 1,062,117 154,797
Intragovernmental 856,310 856,310 856,342 32
1,000 8,350 7,350
Licenses and permits 1,000
Franchise fees 462,000 462,000 530,165 68,165
(23,747)
Rents and royalties 255,190 255,190 231,443
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 1,223,772 1,643,406 419,634
8,300 51,163 42,863
Investment earnings 8,300
14,132,740 15,494,172 16,493,991 999,819
Total Revenues
Expenditures
Council 77,350 77,350 68,481 8,869
Manager 306,720 306,720 310,343 (3,623)
385,040 385,040 375,353 9,687
Human resources
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
14,351,190 16,488,690 13,874,550 2,614,140
Total Expenditures
Excess (Deficiency) of Revenues
(218,450) (994,518) 2,619,441 3,613,959
Over Expenditures
Other Financing Sources (Uses)
Transfers out (827,260) (865,825) (994,796) (128,971)
Proceeds on sale of capital assets --972 972
Issuance of debt -1,865,588 -(1,865,588)
(827,260) 999,763 (993,824) (1,993,587)
Total Other Financing Sources (Uses)
(1,045,710) 5,245 1,625,617 1,620,372
Net Change in Fund Balance
Fund Balance - Beginning (restated) 6,386,262 6,386,262 6,386,262 -
$ 5,340,552 $ 6,391,507 $ 8,011,879 $ 1,620,372
Fund Balance - Ending
See note to budgetary comparison schedule.
98
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
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
Council to approve it in the same manner that
The original budget is the budget in place at the start of the fiscal year, which includes all of
the following:
The budget passed by the Village Council
+Subsequent amendments madeprior to the start of the fiscal year
+Carryovers from the previous year (encumbrances)
=Original budget
The final budget includes all adjustments to the budget applicable to the fiscal year, even if
they take place after the close of the fiscal year.
During the year, total supplemental appropriations of $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.
99
-
---
450
51,652 16,060
89.37% 70.73%
65,803
30,162
(53,637) (18,921)
(53,637)
582,897 3 100,617 567,786
871,902
2014
7,883,164 1,013,300 6,810,903 1,3
$ 8,755,066 $ 7,824,203
$ 930,863
$ 312,030 $ $
-
-
- -
94,416
35,771
81.95%
64,721 77,213
(61,913) (27,290)
(61,913)
142.98%
679,400 318,787 108,010 118,555 3 189,010 577,512
2015
7,824,203 1,2
1,497,398 8,755,066
$ 8,401,715
$ 10,252,464
$
$ 334,559$ $ 1,850,749
-
- -
79,650
83.29%
68,982
(27,450)
128.34%
778,642 300,255 345,151 394,709 609,318 425,306
(401,835)(438,149) (242,266)(438,149) (242,266)
2016
8,401,715 1,3
10,252,464
$ 8,827,021
$ 10,597,615
$ 1,770,594
$ 60,162 $
$ 348,504
-
tion for those years for which information is
(1,852)(1,852)
89.17%84.45%
79,564
(22,327) (18,789)
788,885 300,401 974,383
679,132
(163,805) (151,438)
(136,724)(163,805) (151,438)
2017
1,228,079 8,827,021
10,597,615
$ 11,276,747 $ 10,055,100
$ 366,393 $ 209,615 $ 1,221,647 $ 1,446,616
--
-
-
91.42% 67.77%
71,910 90,424
(31,858)
827,256 307,956 943,640 822,427
622,166
(518,495) (151,438)
(518,495) (151,438)
2018
11,276,747 10,055,100
$ 11,898,913 $ 10,877,527
ly presenting informa
$ 392,933 $ 182,198 $1,021,386 $ 1,507,072
--
87.31%
22,243 94,343
(41,742)(30,043)
106.94%
878,984 378,870 156,424 358,277 694,761
(216,799) (216,799)
2019
1,354,951
11,898,913 10,877,527
$ 13,253,864 $ 11,572,288
$ 333,395 $ 332,559 $ 1,681,576 $1,572,385
-
-
100
(6,147)(8,648)(8,648)ed, the Village is on
88.43%
(25,874)
100.54%
951,218 346,662 171,939 101,983
(216,799) (216,799)
2020
1,021,058 1,486,677
1,513,974
11,572,288
13,253,864
$ 14,767,838 $ 13,058,965
$ 1,708,873
$ 443,018 $ 1,699,718
$ 447,688
RELATED RATIOS
----
(26,570)
(50,743)
103.27%
(29.48)%
193,278
939,618 104,656
(216,799)
(322,948)(216,799)
2021
1,059,130 2,697,602 3,162,752
VILLAGE OF TEQUESTA
14,767,838 13,058,965
$ 15,707,456 $ 16,221,717
$ 470,978 $ 410,585 $(514,261) $ 1,744,261
---
-
-
FIREFIGHTERS' PENSION TRUST FUND
82.74%
48,796
(31,060)
171.41%
200,648 100,398
906,401
(693,145) (693,145)
2022
1,106,369
REQUIRED SUPPLEMENTARY INFORMATION
(2,375,836)
(2,476,069)
15,707,456 16,221,717
$ 16,613,857 $ 13,745,648
$2,868,209
$ 444,381 $ 322,926 $ 1,673,296
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND
however, until a full 10-year trend is compil
*
on as a Percentage
Positi
Net
ered Payroll
xperience
Service costInterestChanges of benefit termsDifference between expected and actual eChanges of assumptionsBenefit payments RefundsOther Contributions - employerContributions - employer
(from State)Contributions - memberNet Investment income Benefit payments RefundsAdministrative expense Other (Use of State Contribution Reserve)of Total Pension Liability Cov
Measurement Date, September 30, Total Pension Lability Total Pension Liability -Ending (a)Plan Fiduciary Net Position Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position
-BeginningPlan Fiduciary Net Position -Ending (b)Net Pension Liability - Ending (a) - (b)Plan Fiduciary Covered PayrollNet Pension Liability as a Percentage of
Net Change in Total Pension LiabilityTotal Pension Liability -Beginning
State Contribution Reserve was used to offset the Village's contribution requirements for the fiscal year ending 2016, 2017 and 2018.
*This schedule is presented as required, available.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
FIREFIGHTERS' 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 $ 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.
The same version of PUB-2010 Headcount-Weighted Mortality
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.
101
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
FIREFIGHTERS' PENSION TRUST FUND
2022 2021 2020 2019 2018 2017 2016 2015 2014
Fiscal Year Ended September 30,
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.
102
-
-----
11,164
25,888
(10,073) (43,331) (18,677)
(10,073) (43,331)
112.08%
169,526 219,219 284,190 (63.82)%
277,278 1
2014
2,459,211 2,782,754
$ (330,455)
$ 161,156 $ 2,736,489 $ $ 3,066,944 $ 517,760
--- --
0,782
8 20,545 20,718 63,766
(39,467)(30,312) (30,312) (27,967)
119.70%
213,603
(391,613)(121,086)
(125.41)%
2015
2,736,489 3,066,944
$ 126,703 $ 2,615,403$ $ 3,130,710 $ (515,307) $ 410,897
---
-
8,638
10,495
75,463 81,280 3 17,067
(27,708) (52,038) (27,708) (52,038)(27,026)
125.57%
1 201,452 306,504 255,437
(226,384)
(201.99)%
2016
3,130,710
2,615,403
$ $ 2,696,683$ $ 3,386,147 $ (689,464) $ 341,342
-----
tion for those years for which information is
0,711
8 16,998
(27,708)
(30,633)(27,708) (18,788)
144.98%
357,477
200,356 368,808
(329,387) (106,661)
(342.67)%
2017
2,696,683 3,386,147
$ 40,829 $ 3,754,955 $ (1,164,933)
$ $ 2,590,022 $ 339,957
-
--
-- -
31,338
34,217
(27,708) (31,858)
(27,708)
146.98%
193,922 344,620
299,052 491,508
2018(233.16)%
2,590,022 3,754,955
ng 2020 and 2021.
$ (1,357,389)
$ 98,621 $ 2,889,074 $ 175,116 $ 4,246,463 $ 582,166
ly presenting informa
* *
-
-
17,338
65,446
(40,184)
(85,146)(40,184) (30,034)
120.92%
143,441(84.70)%
215,318 821,833 120,973 649,262 3 649,262 297,733
2019
1,782,981 2,889,074 1,403,002 4,246,463
scal year endi
$ $ 5,649,465 $ (977,410)
$ 100,925 $ 4,672,055 $ 1,153,957
LLAGE'S NET PENSION ASSET AND
-
-
103
ed, the Village is on
70,327
(49,095) (42,075)(25,874)
(49,095) (42,075)
125.77%
345,149 293,462 477,038
234,747 521,696
(202,087)
(121,364) (202,087)
2020(102.80)%
4,672,055 5,649,465
$ 304,219 $ 4,906,802 $- $ 6,171,161 $ (1,264,359) $ 1,229,934
RELATED RATIOS
-
- -
75,796
(87,966)(49,095) (49,095) (28,748)
145.84%
364,708 319,036 193,086
(135,030) (101,437) (101,437)
(183.67)%
2021
VILLAGE OF TEQUESTA
1,259,833
4,906,802 1,450,054 6,171,161
$ 327,856 $ 5,225,838 $ 100,619 $ 7,621,215 $ (2,395,377) $ 1,304,196
-
-
contribution requirements for fi
POLICE OFFICERS' PENSION TRUST FUND
84,799
(64,802)
(64,802) (15,915)(15,915)(36,426)
118.00%
(68.88)%
388,327 404,335 209,603
(148,672) (116,656) (116,656) (977,873)
REQUIRED SUPPLEMENTARY INFORMATION
2022
7,621,215
5,225,838
(1,149,235)
$ 110,759
$ 362,053 $ 5,630,173 $ 6,643,342 $ (1,013,169) $ 1,470,899
SCHEDULE OF CHANGES IN THE VI
however, until a full 10-year trend is compil
*
al Pension Liability
overed Payroll
xperience
Benefit payments Administrative expense of Tot
Service costInterestBenefit changes Difference between expected and actual eChanges of assumptionsBenefit payments Refunds Other (increase in State contribution reserve) Contributions
- employerContributions - employer (from State)Contributions - memberNet Investment income Refunds Other - use of State contribution reserve C
Measurement Date, September 30,Total Pension Lability Net Change in Total Pension LiabilityTotal Pension Liability -BeginningTotal Pension Liability -Ending (a)Plan Fiduciary Net Position
Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position -BeginningPlan Fiduciary Net Position -Ending (b) 4 Net Pension Asset - Ending (a) - (b)Plan Fiduciary Net Position
as a Percentage Covered PayrollNet Pension Asset as a Percentage of
ailable.
State contribution reserve was used to offset the Village's
* ** Transers from 401(a) plan. This schedule is presented as required, av
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
10/01/2020
Valuation Date
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.
See discussion of valuation results in the October 1, 2019 Actuarial
Other information
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.
104
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
POLICE OFFICERS' PENSION TRUST FUND
2022 2021 2020 2019 2018 2017 2016 2015 2014
Fiscal Year Ended September 30,
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.
105
---
627 560 314 835
(8,534)(4,454)(8,534)(4,454)
78,02991,28884,46,937
(25,678)
2216,124481,165
108.27%
(12.71)%
1 100, 308, 554,
2014
2,792,102 3,3
2,610,123 3,0
$$
$ $ $ (255,649) $ 2,011,191
-
-
(5,959)(5,959)
00,32569,89894,37664,490
(4.10)%
(11,918)(36,136)(11,918)(38,098)
378,610
102.73%
3 253,701 1 115,288 217,553
(157,539)
2015
3,091,2883,43,346,9373,5
$
$$
$ 2,305,760
$ $ (94,592)
--
0.98%
42,17101,70415,694
59,231
99.34%
(40,094)(16,657)(16,161)(16,657)(16,161)(44,359)
3285,954572,273
2 134,829 191,848 451,204
2016
3,469,8984,0
3,564,490 4,0
$$$
$ 26,477 $ 2,696,572
$
tion for those years for which information is
-
0.42%
80,05147,12305,93135,148
99.76%
(41,859)(41,859)(13,511)(37,296)
(13,511)
329,590 3 143,361 919,454
3 362,784 904,952 562,828
(112,103)
2017 4,042,171
4,9
4,015,694 4,9
$
$ $ $ $ 11,975 $ 2,867,220
-
0.60%
47,30527,62750,41208,753
99.67%
66,509
(79,332)(27,837)(79,332) (27,837) (43,300)
373,859 780,504 3 156,434 417,228 773,605
4
20184,947,1235,74,935,1485,7
ly presenting informa
$$$
$ $ 18,874 $ 3,128,680
-
-
1.18%
62,848
61,16449,98711,730
99.39%
(48,114)(48,114)(48,241)
4 425,911 522,360 3 161,553 235,519 502,977
(156,013)(160,588)(160,588)
20195,727,6276,2
5,708,753
6,2
NET PENSION LIABILITY (ASSET) AND
$
$
$ $ $ 38,257 $ 3,231,060
-
ed, the Village is on
4.21%
106
80,85691,34129,156
47,702
97.92%
(53,330)(53,330) (54,652)
180,175
5 468,322 101,865 127,729 3 615,311 917,426
(161,419)(161,419)
2020
1,030,869 6,249,987 6,211,730 7,1
7,2
$$$
$ 151,700 $ 3,603,500
$
RELATED RATIOS
-
70,53509,28480,00378,840
(18,820)(40,527)
(18,820)
116.68%
(36.95)%
497,428 3 171,792
4 328,428
(178,474) (178,474)
(332,590)(109,651)
2021
7,280,856 7,6 1,435,710 1,749,684 7,129,156 8,8
VILLAGE OF TEQUESTA
$
$ $ $ $ (1,269,556) $ 3,435,840
--
(7,996) (7,996)
02,75900,33850,24742,454
91.08% 20.88%
(43,004)
519,671 102,847 891,054 3 181,475
GENERAL EMPLOYEES' PENSION TRUST FUND 5
(226,227)(226,227)
2022
7,609,284 8,5 8,878,840 7,7
REQUIRED SUPPLEMENTARY INFORMATION
(1,390,881)(1,136,386)
$
$ $ $ $ 757,884 $ 3,629,500
however, until a full 10-year trend is compil
SCHEDULE OF CHANGES IN THE VILLAGE'S
al Pension Liability
f Covered Payroll
xperience
o
Service costInterestBenefit changesDifference between actual and expected eAssumption changesBenefit payments Refunds Contributions - employer and StateContributions - memberNet investment
income Benefit payments Refunds Administrative expense of Tot
Measurement Date, September 30,Total Pension Lability Net Change in Total Pension LiabilityTotal Pension Liability -BeginningTotal Pension Liability -Ending (a)Plan Fiduciary Net Position
Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position -BeginningPlan Fiduciary Net Position -Ending (b)Net Pension Liability (Asset) - Ending (a) - (b)Plan Fiduciary
Net Position as a Percentage Covered PayrollNet Pension Liability (Asset) as a Percentage
This schedule is presented as required, available.
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF VILLAGE CONTRIBUTIONS
GENERAL EMPLOYEES' PENSION TRUST FUND
Fiscal Year Actuarially Contribution Actual
Ended Determined Actual Deficiency Covered Contribution as a %
September 30, Contribution Contribution (Excess) Payroll of Covered Payroll
2014 $ 184,627 $ 184,627 $ -$ 2,011,191 9.18%
2015 194,376 194,376 -2,305,760 8.43%
2016 201,704 201,704 -2,696,572 7.48%
2017 235,972 305,931 (69,959) 2,867,220 10.67%
2018 350,412 350,412 -3,128,680 11.20%
2019 362,848 362,848 -3,231,060 11.23%
2020 391,341 391,341 -3,603,500 10.86%
2021 380,003 380,003 -3,435,840 11.06%
2022 350,247 350,247 -3,629,500 9.65%
Notes to Schedule
10/01/2020
Valuation Date
Actuarially determined contribution rates are calculated as of October 1, which is two years
prior to the end of the fiscal year in which contributions are reported.
Methods and assumptions used to determined contribution rates:
Actuarial cost method Aggregate method
Amortization method N/A
Remaining amortization period N/A
Asset valuation method 5-year smoothed market
Inflation 2.25%
Salary increases 4.75% to 5.50%, including inflation, based on years of service.
Investment rate of return 6.50%
Retirement age 100% if eligible for normal retirement before age 62, else age based
from 30% at age 62 to 100% at age 70; 5% for each year eligible for
early retirement.
The same version of PUB-2010 Headcount-Weighted Mortality Table as
Mortality
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.
107
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF INVESTMENT RETURNS
GENERAL EMPLOYEES' PENSION TRUST FUND
2022 2021 2020 2019 2018 2017 2016 2015 2014
Fiscal Year Ended September 30,
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.
108
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND
RELATED RATIOUS
OTHER POST-EMPLOYMENT BENEFITS
2021 2020 2019 2018 2017
Measurement Date, September 30,
Total OPEB Lability
Service cost
$ 63,270 $ 57,961 $ 50,439 $ 51,371 $ 53,040
Interest
12,060 12,064 25,960 22,929 19,739
Difference between expected and actual experience
--(309,165) --
Changes of assumptions and other inputs
411,041 6,038 12,964 (13,500) (14,020)
Benefit payments
(20,244) (19,040) (34,636) (39,712) (37,725)
466,127 57,023 (254,438) 21,088 21,034
Net Change in Total OPEB Liability
447,273 390,250 644,688 623,600 602,566
Total OPEB Liability -Beginning
$ 913,400 $ 447,273 $ 390,250 $ 644,688 $ 623,600
Total OPEB Liability -Ending
$ 7,825,935 $ 7,597,995 $ 7,284,363 $ 6,694,984 $ 5,708,842
Covered - Employee Payroll
Total OPEB Liability as a percentage of
Covered-Employee Payroll
11.67% 5.89% 5.36% 9.63% 10.92%
Notes to Schedule
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 6.30%
2023 5.75%
2024 5.60%
2025 5.42%
2026 5.24%
2027 5.07%
2028 4.89%
2029 4.71%
2030 4.53%
2031 4.14%
Ultimate health cost trend 3.75%
Salary increases 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.
109
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Fiscal Year Ended June 30,
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.
110
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Fiscal Year Ended June 30,
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.
111
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
FLORIDA RETIREMENT SYSTEM (FRS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Fiscal Year Ended September 30,
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.
112
VILLAGE OF TEQUESTA
REQUIRED SUPPLEMENTARY INFORMATION
HEALTH INSURANCE SUBSIDY PROGRAM (HIS)
SCHEDULE OF VILLAGE CONTRIBUTIONS
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Fiscal Year Ended September 30,
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 determined as of the Village's most recent fiscal year.
113
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted 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
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
s, bridges, sidewalks and storm water drainage
systems) and streetscape beautification projects.
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
$ 900,716 $ 140,245 $ 912,611 $ 1,953,572
Total Assets
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
28,186 6,723 -34,909
Total Liabilities
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
872,530 133,522 912,611 1,918,663
Total Fund Balances
$ 900,716 $ 140,245 $ 912,611 $ 1,953,572
Total Liabilities and Fund Balances
114
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR 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
762,533 94,816 102 857,451
Total Revenues
Expenditures
Current:
Public safety 766,390 45,690 -812,080
Transportation --186,149 186,149
Capital outlay -72,645 60,864 133,509
766,390 118,335 247,013 1,131,738
Total Expenditures
Excess (Deficiency) of Revenues
(3,857) (23,519) (246,911) (274,287)
Over (Under) Expenditures
Other Financing Sources (Uses)
Transfers in --806,231 806,231
--806,231 806,231
Total Other Financing Sources (Uses)
(3,857) (23,519) 559,320 531,944
Net Change in Fund Balances
876,387 157,041 353,291 1,386,719
Fund Balances - Beginning of Year
Fund Balances - End of Year $ 872,530 $ 133,522 $ 912,611 $ 1,918,663
115
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
BUILDING FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Variance
with Final
Budget
Budgeted Amounts
Actual Positive
Original Final Amounts (Negative)
Revenues
Charges for services $ -$ -$ 5,546 $ 5,546
Licenses and permits 503,000 703,000 751,857 48,857
Miscellaneous --55 55
Investment earnings 1,400 1,400 5,075 3,675
504,400 704,400 762,533 58,133
Total Revenues
Expenditures
Public safety 676,260 746,260 766,390 (20,130)
Capital outlay -40,000 -40,000
676,260 786,260 766,390 19,870
Total Expenditures
Net Change in Fund Balance (171,860) (81,860) (3,857) 78,003
876,387 876,387 876,387 -
Fund Balance - Beginning
$ 704,527 $ 794,527 $ 872,530 $ 78,003
Fund Balance - Ending
116
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Variance
with Final
Budget
Budgeted Amounts
Actual Positive
Original Final Amounts (Negative)
Revenues
Fines and forfeitures $ -$ 44,202 $ 94,055 $ 49,853
Investment earnings --761 761
-44,202 94,816 50,614
Total Revenues
Expenditures
Public safety 32,920 62,170 45,690 16,480
Capital outlay 42,000 131,702 72,645 59,057
74,920 193,872 118,335 75,537
Total Expenditures
(74,920) (149,670) (23,519) 126,151
Net Change in Fund Balance
157,041 157,041 157,041 -
Fund Balance - Beginning
$ 82,121 $ 7,371 $ 133,522 $ 126,151
Fund Balance - Ending
117
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Variance
with Final
Budget
Budgeted Amounts
Actual Positive
Original Final Amounts (Negative)
Revenues
Investment earnings $ 1,000 $ 1,000 $ 102 $ (898)
1,000 1,000 102 (898)
Total Revenues
Expenditures
Transportation -340,840 186,149 154,691
Capital outlay 419,590 78,750 60,864 17,886
419,590 419,590 247,013 172,577
Total Expenditures
(Deficiency) of Revenues
(418,590) (418,590) (246,911) 171,679
Under Expenditures
Other Financing Sources
Transfers in 677,260 677,260 806,231 128,971
Transfers out (87,000) (117,585) -117,585
590,260 559,675 806,231 246,556
Total Other Financing Sources
171,670 141,085 559,320 418,235
Net Change in Fund Balance
353,291 353,291 353,291 -
Fund Balance - Beginning
$ 524,961 $ 494,376 $ 912,611 $ 418,235
Fund Balance - Ending
118
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
500 500 1,087 587
Total Revenues
Expenditures
Public works 255,000 255,000 255,000 -
Parks and recreation --7,132 (7,132)
2,152,671 323,552
Capital outlay 87,000 2,476,223
342,000 2,731,223 2,414,803 316,420
Total Expenditures
(Deficiency) of Revenues
(341,500) (2,730,723) (2,413,716) 317,007
Under Expenditures
Other Financing Sources
Transfers in 87,000 117,585 -(117,585)
87,000 117,585 -(117,585)
Total Other Financing Sources
(254,500) (2,613,138) (2,413,716) 199,422
Net Change in Fund Balance
2,550,094 2,550,094 2,550,094 -
Fund Balance - Beginning
$ 2,295,594
$ (63,044) $ 136,378 $ 199,422
Fund Balance - Ending
----
119
FIDUCIARY FUNDS
FIDUCIARY FUNDS
Fiduciary funds are used to report assets held in a trustee or agency capacity for others and
therefore cannot be used to support the govern
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:
for contributions and benefits of the firefighter employees.
and for contributions and benefits of the police employees.
resources and for contributions and benefits for the general employees of the Village.
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2022
Police General
Firefighters' Officers' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund Total
Assets
$ 185,583 $ 90,581 $ 279,505 $ 555,669
Cash and cash equivalents
Investments
Equities 8,449,900 4,120,650 4,538,813 17,109,363
Fixed Income 2,908,722 1,418,458 1,834,628 6,161,808
Real Estate Fund 1,891,597 922,449 1,068,096 3,882,142
13,250,219 6,461,557 7,441,537 27,153,313
Total investments
Contributions receivable 208,464 4,373 11,296 224,133
Accrued interest receivable 17,753 8,664 11,975 38,392
Prepaid items 26,634 8,018 20,547 55,199
Due from broker 161,791 78,899 -240,690
13,850,444 6,652,092 7,764,860 28,267,396
Total Assets
Liabilities
Accounts payable 12,141 8,750 11,118 32,009
Due to broker --11,288 11,288
12,141 8,750 22,406 43,297
Total Liabilities
Deferred Inflows of Resources
Deferred inflows 92,655 --92,655
Total Deferred Inflows
92,655 --92,655
of Resouces
Net Position Restricted for
$ 13,745,648 $ 6,643,342 $ 7,742,454 $ 28,131,444
Pension Benefits
120
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Police General
Firefighters' Officers' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund Total
Additions
Contributions:
State of Florida $ 200,648 $ 92,947 $ -$ 293,595
Employer 322,925 110,759 350,247 783,931
Employee 100,398 84,799 181,475 366,672
623,971 288,505 531,722 1,444,198
Total Contributions
Investment Earnings
Net appreciation in fair value of
investments (2,804,721) (1,344,403) (1,552,500) (5,701,624)
Gain on sale of investments 229,809 107,785 61,730 399,324
Interest and dividends 240,754 114,618 146,876 502,248
Total investment earnings (2,334,158) (1,122,000) (1,343,894) (4,800,052)
(46,988) (115,901)
Less investment expenses (41,678) (27,235)
Net Investment earnings (2,375,836) (1,149,235) (1,390,882) (4,915,953)
(1,751,865) (860,730) (859,160) (3,471,755)
Total Additions
Deductions
Benefits paid 293,908 64,802 226,227 584,937
Refund of contributions 399,237 15,915 7,996 423,148
Administrative expenses 31,059 36,426 43,004 110,489
724,204 117,143 277,227 1,118,574
Total Deductions
(2,476,069) (977,873) (1,136,387) (4,590,329)
Change in Net Position
Net Position Restricted for
Pension Benefits
16,221,717 7,621,215 8,878,841 32,721,773
Beginning of year
End of year $ 13,745,648 $ 6,643,342 $ 7,742,454 $ 28,131,444
121
STATISTICAL SECTION
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.
3
791 822
391,
2022
1,769,822 8,831,563 7,382,153 2,161,644
16,213,716
$ 20,936,548$ 23,416,766 $ 44,353,314
$ 10,335,16 $ 15,642, $ 25,977,954
694
376,728
2021
1,628,800 9,028,159 6,444,980
2,005,528
15,473,139
$ 7,103,735 $ 17,760, $ 15,470,616 $ 22,292,324 $ 22,574,351
$ 40,053,018
397,997
2020
1,781,225 8,678,044
1,398,916 6,896,819 1,796,913
$ 10,473,238
$ 13,653,379 $ 14,166,351 $ 21,461,167 $ 24,639,589 $ 35,114,546
-
,562
2,5843,146
2019
2,067,445 1,086,789 7,967,052 2,067,445 9,053,841
$ 10,470 $ 13,624,796 $ 13,01 $ 20,979,636 $ 23,48 $ 34,604,432
-
978,157
2018
1,615,279 6,972,014 1,615,279 7,950,171
$ 10,678,761 $ 13,272,197 $ 12,774,847 $ 19,746,861 $ 23,453,608 $ 33,019,058
-
logy for all years presented.
2017
1,157,654 5,883,331 7,040,985
1,776,769 1,776,769
$ 10,023,291 $ 12,957,714 $ 13,078,584 $ 18,961,915 $ 23,101,875 $ 31,919,629
122
-
2016
1,612,070
1,343,543 6,117,202 1,343,543 7,729,272
LAST TEN FISCAL YEARS
$ 12,321,453
$ 9,948,379 $ 12,903,992 $ 18,438,655 $ 22,269,832 $ 31,342,647
NET POSITION BY COMPONENT
-
(ACCRUAL BASIS OF ACCOUNTING)
VILLAGE OF TEQUESTA, FLORIDA
2015
1,572,614 1,638,243 5,781,969 1,572,614 7,420,212
$ 10,058,956 $ 13,269,813 $ 12,681,504 $ 18,463,473 $ 22,740,460 $ 31,733,286
-
940,739 940,739
2014
2,739,726 5,632,617 8,372,343
$ 10,284,849 $ 13,965,314 $ 13,402,412 $ 19,035,029 $ 23,687,261 $ 33,000,343
-
579,320 579,320
2013
3,011,737 5,408,598 8,420,335
$ 14,167,067 $ 24,428,543
$ 10,261,476 $ 13,852,533 $ 19,575,665 $ 33,428,198
tricted
icted
Net investment in capital assetsRestrictedUnrestrictedNet investment in capital assetsRestrictedUnrestrictedNet investment in capital assetsRestrUnres
Governmental Activities Total Governmental Activities Net PositionBusiness-type Activities: Total Business-type Activities Net PositionPrimary government: Total Governmental Activities
Net Position
Note: The Village implemented GASB Statement No.63 during the fiscal year ended September 30, 2013 and utilized the new termino
0
- -
926
107
111)
24,070
38,063
61,667
889,
239,652 715,004 529, 490,267 507,306
2022
2,961,670 7,926,208 1,986,016 1,055,418 5,551,570 6,795,681 2,017,30 1,581,739 5,246,927 6,579,570 7,577,143
14,168,964
$ 20,964,645
$ $ 1,548,158 $ 12,8 $ (8,922,037) $ (8,032,
-
59,662 11,253 63,568 19,157
524,732 511,299 450,271 486,643 751,223
701,364
2021
7,507,748 1,944,570 5,810,515 6,846,546 2,416,823 1,676,429 6,098,419 6,641,698 7,597,769
13,334,604
$ 3,121,260
$ 20,181,150 $ 1,930,346 $ 13,696,188 $ (7,236,185) $ (6,484,962)
-
-
522)
8,500
44,058 27,402
675,172 453,776 496,619 105,492 432,355 487,874 376,184
2020
2,964,202 3,914,597 2,843,622 7,290,781
2,353,750 8,806,935 1,496,229 1,552,009 6,370,552
13,376,144
$ (10,156,338)
$ $ 17,290,741 $ 1,150,219 $ 10,134,403 $ (10,532,
- -
71,803 83,794 16,045 17,692
771,783 485,566 480,268 430,814 486,893
2019
2,411,174 8,455,155 1,436,674 5,079,244 6,045,078 2,960,981 6,173,278 7,090,985 1,045,907
1,845,894
13,146,589
$ 10,051,966 $ (10,185,608) $ (9,139,701)
$ $ 19,191,667 $ 997,556
- -
96,109 83,209 82,000
479,478 488,121 719,094
704,448 687,878 253,986 375,534
2018
7,023,664 1,945,513 4,871,601 6,038,957 1,867,606 3,186,058 5,894,396 6,758,051
12,078,572
$ 2,308,838 $ 18,117,529 $ 899,257 $ 9,944,109 $ (8,892,514) $ (8,173,420)
- -
83,749 10,235
23,657
699,068 111,504 338,758 479,278 340,118 493,753 464,400
2017
7,004,196 1,650,162 5,038,740 5,856,776 1,775,824 2,759,054 5,487,305 6,321,176
11,666,092
$ 9,080,230 $ (8,898,038) $ (8,433,638)
$ 2,201,162 $ 17,522,868 $ 865,589
- -
9,505
69,570 73,828
(64,827)
489,874 490,801
663,524 117,709 490,405 814,596 325,005
2016 123
7,270,731 1,381,760 4,726,849 5,707,128 1,734,116 2,701,615 4,826,495 5,642,301
(8,650,952)
11,352,567
$ 1,918,843 $ 17,059,695$ $ 8,343,916$ $ (8,715,779)
- - -
792
LAST TEN FISCAL YEARS
67,777 48,300
CHANGES IN NET POSITION
566,585 124,331 262,413 499,670 319,993 478,616
786,
(453,260)
2015
VILLAGE OF TEQUESTA, FLORIDA
(ACCRUAL BASIS OF ACCOUNTING)
5,812,114 1,161,613 9,379,214 4,911,816 5,673,899 1,563,375 2,466,244 4,422,030 5,220,639
(6,912,970)
$ 1,714,571 $ 15,053,113$ $ 7,686,883$ $ (7,366,230)
-
- -
2013 and utilized the new terminology for all years presented.
76,918 63,148
583,445 114,398 279,051 489,977 694,220 323,363 480,795
(591,027)
2014
6,222,408 1,009,693 9,700,270 4,782,022 5,551,050 1,755,652 2,589,938 4,155,865 4,960,023
(7,110,332)
$ 1,770,326 $ 15,251,320$ $ 7,549,961$ $ (7,701,359)
- -
4,480
86,349 95,145
(85,713)
scal year ended September 30,
640,513 135,204 221,283 484,165 323,513 482,422
2013
6,207,866 1,049,062 9,675,593 4,204,955 4,910,403 1,142,593 2,024,368 4,018,755 4,824,690
(7,651,225)
$ 6,849,058 $ (7,736,938)
$ 1,642,948 $ 14,585,996 $ 695,801$
ges for services:
General government Public safety Transportation Leisure services Interest on long-term debt Water Stormwater Refuse and recycling Char General government Public safety Transportation
Leisure services Operating grants and contributions Capital grants and contributions Water Stormwater Refuse and recycling
Total Business-type Activities ExpensesTotal Primary Government Program ExpensesTotal Governmental Activities Program Total Business-type Activities Program RevenuesTotal Primary Government
Program RevenuesNet (Expense) Revenue Governmental activities Business-type activities Total Primary Government Net Expense
Expenditures Governmental activities:Total Governmental Activities Expenditures Business-type activities:Program Revenues Governmental activities:RevenuesBusiness-type Activities
Charges for services: Operating grants and contributions
Note: The Village implemented GASB Statement No.63 during the fi
,165 972
6,803
(6,014)
58,188 23,999 45,162
530 188,565 234,516
(188,565)
2022
2,170,196 1,062,117 2,995,972 1,124,442
4,120,414
11,918,009
12,152,525
$ 8,260,937$
7,917
13,296 54,949 26,524 21,891 64,074 29,834 79,934
(21,891)
2021
509,963 901,243 831,157,938,472
7,848,744
1,966,890 4,107,315
4
11,343,500
11,423,434
$
$
-
-
-
10,114
54,602 19,996 21,976 59,333 46,014 28,583
2020
447,682 807,939 105,347 481,531 5
1,711,817
10,561,105
10,666,452
$ 7,497,093$
--
2,222
27,131 24,597
37,290
2019
467,670 861,647 133,769 147,356 186,868 352,599
1,232,775
2,222,910
10,538,207 10,725,075
$ 6,800,483 $ 1,585,374
--
4,278
92,520 19,414 13,375 86,097
29,106
2018
459,076 848,666 517,529 838,575
119,481
1,556,934 9,410,043 9,529,524
$ 6,420,058 $ 1,356,104
---
logy for all years presented.
9,336
15,605 32,676 28,064 53,722
30,796 58,860
2017
452,496 830,570 523,260
1,512,354 8,951,760 9,010,620
$ 6,098,723 $ 576,982
---
8,465
23,123 14,601
27,041 25,408 40,009
(24,818)
2016
449,126 822,390
(365,822)
1,271,278 8,285,130 8,325,139
124
$ 5,683,707
$ (390,640)
--
-
7,139
9,986
13,073
17,739 20,432 30,418
2015
811,044 978,059
462,312
LAST TEN FISCAL YEARS
(422,842)
1,304,312 7,891,030 7,921,448
$ 5,275,411
$ 555,217
---
-
(ACCRUAL BASIS OF ACCOUNTING)
CHANGES IN NET POSITION (CONTINUED)
VILLAGE OF TEQUESTA, FLORIDA
13,184
53,406 14,976 35,415 50,391
2014
770,616
401,859 112,781
(540,636)
1,216,100 7,223,113 7,273,504
$ 4,767,948 $ (427,855)
--
- -
22,316
77,390 20,727 37,017 57,744
(27,969)
2013
380,160 735,924
(829,291)
1,266,929 6,821,934
6,879,678
$ 4,339,215 $ (857,260)
roperty taxes
Taxes: P Other taxes Franchise fees based on gross receipts Unrestricted intergovernmental Unrestricted investment earnings Miscellaneous revenues Gain on sale of capital assets
Transfers
Governmental activities:Total Governmental Revenues and transfersBusiness-type Activities Unrestricted Investment earnings Miscellaneous revenues Transfers Total Primary Government
Change in net position: Governmental activities Business-type activities Total Primary Government
General Revenues Gain on sale of capital assets Total Business-type Activities
Note: The Village implemented GASB Statement No.63 during the fiscal year ended September 30, 2013 and utilized the new termino
3
8
79
308 000 000
18,844
2022 812, 288, 500, 312,722 241,653
2,036,09 4,375,47 8,011,8 1,481,822 2,055,041
$ $ $ $
55,709 24,807
732,800 561,007 500,000 262,429
2021
4,356,864
6,206,380 1,067,793 2,581,784 3,936,813
$ $ $ $
3,056
46,485 87,956
420,583 500,000 298,661 978,333
2020
1,884,304 3,394,469 1,115,830
$
$ 290,921 $ $
- - -
391,214
2019 504,745 175,167 679,912
1,562,700 1,479,005 3,670,429
$ 237,510 $ $ $
-
- -
108,391 234,838 343,229
2018
1,506,888 1,150,229
1,000,000 3,882,111
$ 224,994 $ $ $
- - -
60,149
335,858
2017 396,007
1,440,911 1,214,418 1,478,525 4,345,896
$ 212,042 $ $ $
SIS OF ACCOUNTING)
- - -
125
2016 995,512 348,031 110,232 458,263
1,060,578 2,079,187
4,310,262
$ 174,985 $ $ $
-
- -
LAST TEN FISCAL YEARS
16,441
790,582 286,965 303,406
2015
2,024,550
1,010,978 3,987,146
$ 161,036 $ $ $
VILLAGE OF TEQUESTA, FLORIDA
- - -
FUND BALANCES OF GOVERNMENTAL FUNDS
(MODIFIED ACCRUAL BA
9,726
668,050 291,654
2014 301,380
1,013,600 1,714,008 3,603,527
$ 207,869 $ $ $
-
- -
4,033
144,581 575,287 159,726 163,759
2013
1,000,000 1,921,295
3,641,163
$ $ $ $
NonspendableRestrictedCommittedAssignedUnassignedNonspendableRestrictedCommittedAssigned
General Fund Total General FundAll Other Governmental Funds Total Other Governmental Funds
-
7
--
861
972
5.95%
05,106
58,188 16,589
(68,562)
2022 530,165 856,342 760,207 109,078 231,443 827,654 718,072 166,698 806,231
(994,796) (187,593) (256,155)
1,062,117 1,653, 2,9 8,414,83 2,556,453
1,643,406 1,832,271
17,352,529 17,421,091
10,431,133
$$
--
100
3.58%
26,524
13,296 54,949 59,662
2021
509,963 872,285 114,322 227,006 639,963 430,097 896,154
(874,263)
2,641,140 1,031,297 5,351,177 7,208,623 7,257,038
2,113,512 2,690,661 8,106,046 1,740,042
(1,624,144)
17,393,504
19,017,648
$ 9,815,634 $ 5,632,894
-
-
3.61%
44,058 21,976
54,602 11,708 19,996 32,677
2020
815,868 725,436 412,060 105,305 127,281
447,682 106,063 385,873 218,931 603,268 720,011
1,387,682 2,207,621 8,054,006 1,309,050 1,520,093
(1,520,093)
13,382,751 13,350,074
$ 9,208,910 $ 159,958
-
3.47%
25,792 87,490 27,131 59,573 12,230 73,924 26,480 24,597 51,077
2019
869,592 467,670 696,600 653,497 133,769 213,490 700,649 260,796 395,856 422,754
(422,754)
2,275,900
1,276,167 8,452,601 1,243,062
13,474,591
13,400,667
$ 9,023,393 $ 125,001
--
4.16%
8,241
74,486 21,623 13,375 13,375
92,520 20,547
2018
893,555 577,300 209,856 999,035 429,614
459,076 291,097 753,211 647,830 740,100
(529,938)(740,100)
1,300,331 2,210,205 6,968,142 1,761,729
12,582,726 13,112,664
$ 7,976,992 $ (516,563)
-
-
4.68%
9,336 9,336
27,682 15,605 32,743 40,660 92,164 19,340
(35,958)
2017
836,780 452,496 561,350 646,126 203,965 629,764 356,224 440,676 106,000
(106,000)
2,104,039
1,272,994 6,632,707 1,462,522
11,701,478
11,737,436
$ 7,611,077 $ (26,622)
-
5.18%
8,465
18,643 23,123
79,733 67,010 28,389
2016
825,990 550,350 198,682 309,399 428,048 106,848 132,774 155,897
449,126 554,591 609,009 322,076 366,800
(366,800)
126
1,246,301 1,811,777 6,154,309 1,203,513
10,963,622 10,641,546
$ 6,954,985 $ 477,973
--
LAST TEN FISCAL YEARS
4.57%
7,139
17,394 20,017 10,345 85,000
(85,000)
2015
841,950 462,312 534,416 346,529 150,323 192,256 527,223 399,457 334,630 113,986 131,915 253,730 253,730 385,645
1,615,339
1,192,142 6,201,180 1,010,126
10,344,201
10,212,286
$ 6,579,723$
VILLAGE OF TEQUESTA, FLORIDA
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)--
4.52%
21,166 12,736
13,184 64,855
2014
816,323 519,188 136,906 831,240 306,411 114,398 150,000 432,844
401,859 433,428 319,598 858,787 507,069 432,844
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
(332,859)(150,000)
1,102,496 9,813,051 1,614,291 5,900,978
10,145,910
$ 5,984,048 $ 99,985
--
- -
4.03%
61,185 22,316 42,187 98,341 11,870
2013
752,728 380,160 901,659 503,709 330,569 147,303 879,169 561,938 120,399 247,809 125,054 420,440
(530,731) (420,440)
8,846,301 1,528,314 9,377,032
5,902,479
$ 5,606,144 $ (530,731)
enues
ers in
TaxesIntergovernmentalFranchise feesCharges for servicesIntragovernmentalGrants, contributions and donationsLicenses and permitsInterestFines and forfeituresMiscellaneousRents and royaltiesImpact
feesCurrent: General government Public safety Transportation Leisure servicesCapital outlayDebt service: Principal Interest Fiscal charges Over Expenditures TransfTransfers-out
Issuance of debtOther proceeds Noncapital Expenditures
Revenues Expenditures Total Other Financing Sources (Uses)Net Change in Fund BalancesDebt Service as a Percentage of
Total RevTotal ExpendituresExcess (Deficiency) of Revenues Other Financing Sources (Uses)
e of
as a
77%73%72%70%71%71%71%71%69%
Value
Actual
Assessed
Value
Percentag
77%
Taxable
Property
Value of
Estimated
1,061,248,329 1,178,887,330 1,296,773,699 1,434,279,267 1,496,590,133 1,579,732,964 1,642,381,484 1,721,822,967 1,871,523,031
Actual "Just"
$ 1,009,673,919
Tax
Rate
Total
Direct
6.6290
5.7671 6.0500 6.2920 6.2920 6.2920 6.2920 6.2920 6.6290 6.6290
Value
Taxable
Assessed
816,331,544 863,937,071 930,983,422
1,002,224,986 1,060,772,539 1,123,534,054 1,173,392,973
1,221,100,288 1,295,434,699
$ 779,911,042
1,680,227 1,832,732 1,837,722 1,907,953 1,934,055 1,944,199 1,946,645 1,947,436 1,965,352
Taxable
Property
Value of
Estimated
Actual "Just"
$ 1,564,811
Centrally
VALUE OF TAXABLE PROPERTY
nty Florida
Assessed Property
Value
127
Taxable
Assessed
1,810,329 1,900,210 1,930,206 1,940,096 1,943,025
1,675,609 1,593,192 1,943,231 1,961,352
$ 1,559,808
LAST TEN FISCAL YEARS
Taxable
Value of Property
22,943,347 22,968,598 25,574,708 27,617,131 24,908,873 26,506,260 27,142,879 27,870,809 27,127,527
Estimated
Actual "Just"
$ 23,010,389
f Tequesta, Palm Beach Cou
VILLAGE OF TEQUESTA, FLORIDA
Personal Property
Value
Taxable
Assessed
19,372,909 21,121,271 21,858,849 21,962,096
17,442,002 17,344,269 19,880,161 21,837,763 21,629,866
$ 17,464,955
d Valorem Rolls o
ASSESSED AND ESTIMATED ACTUAL
Taxable
Property
Value of
Estimated
1,036,624,755 1,154,086,000 1,269,361,269 1,404,754,183 1,469,747,205 1,551,282,505 1,613,291,960 1,692,004,722 1,842,430,152
Actual "Just"
$ 985,098,719
Real Property
Value
Taxable
Assessed
797,213,933 844,999,610 909,292,932 978,487,013
1,039,469,424 1,100,472,687 1,149,591,099 1,197,194,961 1,271,843,481
$ 760,886,279
m DR-489V Revised Recapitulation of the A
ar Ended
For
201620172018201920202021
2013201420152022
September 30
Fiscal Ye
Source: Palm Beach County Property Appraiser's office:
h Care
County
District
1.1220 1.0800
1.0800 1.0426 0.8993 0.7808 0.7261 0.7261 0.7261 0.7261
Healt
ices
Council
0.7300 0.7025 0.6745 0.6677 0.6833 0.6590 0.6403 0.6497 0.6497 0.6233
Serv
Children's
320
. District
(FIND)
0.0345 0.0345 0.0345 0.0320 0.0320 0.0320 0.0320 0.0320 0.0 0.0320
Fl. Island
Nav
nlet
I
Jupiter
District
0.1364 0.1364 0.1285 0.1216 0.1145 0.1089 0.1042 0.0964 0.0921
0.0998
(1)
District
0.1757 0.1685 0.1577 0.1459 0.1359 0.2659 0.2519 0.2398 0.2295 0.2207
ater Mgmt.
S. Florida
W
Overlapping Rates
ibrary
County
L
0.6066 0.6065 0.6024 0.5985 0.5933 0.5891 0.5901 0.5870 0.5833 0.5824
128
CT AND OVERLAPPING GOVERNMENTS
School
District
7.7780 7.5860 7.5940 7.5120 7.0700 6.7690 6.5720 7.1640 7.0100 6.8750
LAST TEN FISCAL YEARS
(Per $1,000 of Assessed Value)
nstruction
0.0613 0.0587 0.0548
0.0506 0.0471 0.0441 0.0417 0.0397 0.0380 0.0365
Everglades
Co
VILLAGE OF TEQUESTA, FLORIDA
bt
De
County
0.2087 0.2037 0.1914 0.1462 0.1327 0.1208 0.1165 0.0765 0.0334
0.0309
County
4.7815 4.7815 4.7815 4.7815 4.7815 4.7815 4.7815 4.7815 4.7815 4.7815
PROPERTY TAX RATES - ALL DIRE
te
Ra
Village
5.7671 6.0500 6.2920 6.2920 6.2920 6.2920 6.2920 6.6290 6.6290 6.6290
Direct Rates
2013
201420152016201720182019202020212022
ptember 30
Se
Overlapping rates are those of local and county governments that apply to property owners within the Village of Tequesta.
Fiscal Year Ended
1)
(Sources: Palm Beach County Property Appraiser's office
Value
2.07% 1.43% 1.03% 0.89% 0.88% 0.51% 0.50% 0.45% 0.37% 8.12%
Taxable
otal Village
T
Percentage of
1 2 3 4 5 6 7 8 9
10
Rank
2013
7,997,096 7,550,656 6,964,298 6,890,927 4,000,000 3,875,855 3,504,304 2,858,223
16,132,040 11,126,197
70,899,596
ssessed
Value
Taxable
A
$ $
Value
0.73%
1.77%2.01% 1.36%1.39% 1.05%0.99% 0.72% 0.91% 0.90%
11.84%
Taxable
otal Village
T
Percentage of
1 2 3 4 5 6 7 8 9
10
Rank
2022
129
9,365,611 9,480,400
22,974,387 25,993,000 17,589,220 18,016,562 13,609,897 12,885,530 11,739,748 11,721,342
ssessed
Value
153,375,697
Taxable
A
$ $
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
VILLAGE OF TEQUESTA, FLORIDA
Taxpayer
Total
Tamwest Realty, INC (County Line Plaza)300 Beach Road Developer, LLCGMH Tequesta Holdings, LLC250 Beach Road Developer, LLCNoble Centers I, LLC (Tequesta Shopps)Russell Properties of
Tequesta, LLCTurnbery Beach Road, LLCTequesta Propco LLCFlorida Power & Light Co.Duke Daniel IIITequesta Investors LPTerrace Communities Tequesta, LLCALS North America, Inc.Tequesta
Mall, LLC (SLO ML LLC)JMZ Tequesta Properties, LLCTequesta Country Club
Source: Palm Beach County Tax Collector's System, tax year 2022
(2)
96.8% 96.4% 96.4% 96.3% 96.3% 96.3% 96.2% 96.4% 96.9% 96.2%
of Levy
Percentage
Collections to Date
4,359,417 4,769,304 5,241,655 5,651,513 6,083,287 6,425,085 6,803,979 7,497,154 7,843,537 8,259,906
Amount
Total
$
--
- -
(185)(311)
3,796 2,405 4,590 2,206
13,841
in
sequent
Years
Collections
Sub
$ 21,847
130
3% 3% 9%2%
96.3%
96.1%96.3%96.96.96.2%96.2%96.4%96.96.
of Levy
Percentage
Year of the Levy
Collected within the
LAST TEN FISCAL YEARS
iscal
4,755,463
4,337,570 5,237,859 5,651,698 6,083,598 6,422,680 6,799,389 7,494,948 7,843,537 8,259,906
Amount
F
$
sed on the taxable value of the prior year
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
(1)
ty Tax Collector's office.
4,946,692 5,437,423 5,866,490 6,314,407 6,674,381 7,069,276 7,778,422 8,094,674 8,587,437
Taxes
Year
Levied for
for the Fiscal
$ 4,502,727
ded
2013201420152016201720182019202020212022
En
The tax levied in a fiscal year is ba
Fiscal Year
Includes discounts taken by property taxpayers.
September 30,
(1) (2)Source: Palm Beach Coun
944 818 696
apita
Per
1,474 1,448 1,366 1,247 1,103 1,702 1,524
C
2.65%2.50%2.37%1.81%1.53%1.26%1.03%0.84%1.95%1.51%
Income
f Personal
Percentage
o
rimary
Total
P
8,150,3977,736,5397,107,8666,319,3305,527,9394,783,3604,088,1379,373,866
10,468,665
Government
$ 8,331,831
able
19,113
ctivities
Notes
Pay
A
5,245,7034,925,8184,592,4204,244,5613,882,7843,507,5812,721,1152,344,387
5,553,570
3,1
Business-type
e notes to the financial statements.
$
131
-
eases
385,059 561,001 547,423 400,739 277,951 228,793 256,234 493,543 336,479
LAST TEN FISCAL YEARS
L
Capital
$
VILLAGE OF TEQUESTA, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
able outstanding debt can be found in th
712,790
Notes
Pay
2,519,635 2,249,720 1,968,023 1,674,030 1,367,204 1,046,986 7,254,007 6,693,000
Governmental Activities
$ 2,778,261
2013201420152016201720182019202020212022
September 30
Fiscal Year Ended
Note: Details regarding the Village's
944
818 696
1,474 1,4481,3661,2471,103
1,7021,524
Net
Debt
tstanding
Per Capita
Ou
1.07%1.00% 0.90% 0.76% 0.63% 0.52%0.43%0.35%0.85% 0.72%
t to
Value of
O/S Deb
Ratio of Net
Taxable Property
et
N
8,150,3977,736,5397,107,8666,319,3309,373,866
5,527,938 4,783,360 4,088,137
( A - B)
10,468,665
(O/S) Debt
Outstanding
$ 8,331,831
-
---------
(B)
Funds
ebt Service
Available
D
$
, University of Florida.
132
(A)
Debt
Gross
8,331,831 8,150,397 7,736,539 7,107,866 6,319,330 5,527,938 4,783,360 4,088,137 9,373,866
10,468,665
Outstanding
$
986 001 716
LAST TEN FISCAL YEARS
(2)
ssessed
Taxable
Property
Value of
A816,331,544863,937,071930,983,422
779,911,042
VILLAGE OF TEQUESTA, FLORIDA
omic and Business research
1,002,224, 1,060,772,539 1,121,712,544 1,172,469,036 1,227,113, 1,294,696,
$
5,652 5,629 5,665 5,699 5,731 5,857 5,850 5,874 6,152 6,152
lation
(1)
Popu
RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
2013201420152016201720182019202020212022
September 30,
Fiscal Year Ended
Florida Estimates of Population - Bureau of Econ Form DR-422 "Certificate of Final Taxable Value"
(1)(2)
-
-
--
0.00%
2022
7,380,4837,380,483
12 12
127,380,483
$$
$ 1,273,804,833
$127,380,483
-
(1)(2)0.00%
2021
$ 119,913,819 $ 119,913,819
-
0.00%
2020
$ 115,153,412 $ 115,153,412
-
0.00%
2019
0,241,2780,241,278
e of taxable real property
11 11
$$
-
0.00%
total assessed valu
2018
6,077,2546,077,254
f
10 10
$$
-
0.00%
2017
0,222,4990,222,499
$ 10$ 10
Debt limitation - 10% oTotal bonded debt outstanding
Less amount in debt service fund
Total Assessed Value Legal Debt MarginTotal Debt Applicable to LimitationLegal Debt Margin
133
-
0.00%
2016
3,098,3423,098,342
9 9
$$
LAST TEN FISCAL YEARS
-
0.00%
LEGAL DEBT MARGIN INFORMATION
2015
6,393,7076,393,707
VILLAGE OF TEQUESTA, FLORIDA
8 8
$$
-
0.00%
2014
$ 81,633,154 $ 81,633,154
-
0.00%
7,991,104
2013
7
$ $ 77,991,104
Debt Limit
a Percentage of
Form DR-420 "Certification of Taxable Value" Village of Tequesta Charter Section 5.02 Limitations
(1)(2)
Debt LimitTotal Net Debt Applicable to LimitLegal debt marginTotal Net Debt Applicable to Limit as
f
ent and
73,102
226,200
153,098
alm Beach
ebt burden
Debt
7,029,479
his schedule
Share o
Estimate
Direct and
operty values.
the Village of
Overlapping
$ $ 7,255,679
(b)
ing taxable assessed pr
that every taxpayer is a resid
0.58%0.58%
lue and dividing it by the P
ercentage
Estimate
Tequesta 100.00%
y
P
Applicable to
pay long-term debt, the entire d
able is estimated us
ebt
(a)
7,029,479
Net
D
12,534,000
Outstanding
134
$ 26,250,000
of the Village taxable assessed va
nt. However, this does not impl
governments that is borne by the residents and businesses of
, with the geographic boundaries of the Village of Tequesta. T
Village's ability to issue and re
AS OF SEPTEMBER 30, 2022
the Palm Beach County Property Appraiser's Office)
de, at least in part
ided by
the percentage of overlapping debt applic
VILLAGE OF TEQUESTA, FLORIDA
Palm Beach County School Board
zes that, when considering the
otal, overlapping debt
and overlapping debt
Board
Subt
Governmental Unit
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Total direct
timates the portion of the outstanding debt of those overlapping
pplicable percentages were estimated by determining the portion
OVERLAPPING Palm Beach County Palm Beach County SchoolDIRECT DEBT Village of Tequesta
(a) Sources: Palm Beach County and Note: For debt repaid with property taxes,ACounty taxable assessed value. (Data provOverlapping governments are those that coinciesTequesta. This
process recogniborne by the residents and businesses should be taken into accoutherefore responsible for repaying the debt of each overlapping government.
(4)
7.1% 6.0% 5.3% 5.2% 3.7% 3.1% 3.2% 6.6% 4.1% 2.6%
County
Rate
Palm Beach
Unemployment
(3)
49.9
49.9 49.9 49.9 49.9 49.9 49.9 49.9 49.9 49.9
Median Age
(2)
Per
Capita
55,628 57,985 66,914 68,743 71,946 74,754 79,760 83,268 87,478 100,627
Personal
135
Income
$
nomic and Business research, University of Florida.
6
Statistics, Labor Market Statistics Center,
(2)
LAST TEN FISCAL YEARS
of Economic Analysis, Regional Economic
Personal
19,057,304
Income
314,409,45 326,397,565 379,067,810 391,766,357 412,322,526 437,834,178 466,596,000 489,116,232 538,164,656 6
VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
$
(1)
5,652 5,629 5,665 5,699 5,731 5,857 5,850 5,874 6,152 6,152
Population
l Area Unemployment Statistics Program
nformation System.
US Department of Commerce, Bureau
U.S. Census Bureau, 2010 Census U.S. Department of Labor, Bureau of Labor
I
Florida Estimates of Population - Bureau of Eco
Loca
Year
2013201420152016201720182019202020212022
Fiscal
Sources: (1)(2)(3)(4)
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 (service 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. (Hdqtrs) / 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.
136
0
6.7 4. 1.7
12.8 54.0 77.5 19.9 21.6 99.0
2022
6.7 3.0 1.7
12.850.0 72.5 19.921.6 94.0
2021
5.3 3.0 1.7
12.950.0 71.2 21.2 22.9 94.0
2020
8.3 3.0 1.7
13.353.6 78.2 22.1 23.8
102.0
2019
7.1 3.0 1.7
11.8 52.0 73.9 20.9 22.6 97.0
2018
8.1 3.0 1.7
10.853.0 74.9 20.422.1 97.0
2017
6.9 3.0 2.2
18.6
10.352.0 72.2 20.8 93.0
acation and sick leave).
2016
137
5.9 3.0 1.2
10.351.0 70.2 18.6 19.8 90.0
2015
5.0 3.0 1.0
LAST TEN FISCAL YEARS
10.551.0 69.5 16.517.5 87.0
2014
VILLAGE OF TEQUESTA, FLORIDA
5.0 3.0 1.0
11.553.0 72.5 16.5 17.5 90.0
2013
FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM
Water Stormwater
Function/Program General government Public safety Transportation Leisure services
Total Governmental ActivitiesBusiness-type ActivitiesTotal Business-type ActivitiesTotal Primary Government
Governmental Activities
Source: Village of Tequesta Finance Department Notes: A full-time employee is scheduled to work 2,080 hours per year (including vFull-time-equivalent employment is calculated by dividing
total labor hours by 2,080.
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
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 1819 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 328 120 207 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 extinguished/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 SummerClasses 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.
138
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 miles24 24 24 24 24 24 24 24 24 24
No. of bridges 1 1 1 1 1 1 1 1 1 1
Leisure services
6 7 7 7 7 7 6
No. of parks 5 6 * 6
No. of park acreage54 62 *62 62 62 62 62 62 62 60
No. of playgrounds2 2 2 2 2 2 2 2 2 2
No. of baseball/softball diamonds3333333333
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)
139
REPORTING SECTION
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor, Village Council
and Village Manager
Village of Tequesta, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta,
thereon dated March 8, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statem
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 Villag
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
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.
941-747-4483 www.mjcpa.com
Members of The American Institute of Certified Public Accountants
Report on Compliance and Other Matters
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
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards his communication is not
suitable for any other purpose.
Bradenton, Florida
March 8, 2023
141
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
requirements described in the OMB Compliance Supplement that could have a direct and material effect on the
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
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
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,
programs.
m
Members of The American Institute of Certified Public Accountants
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
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
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,
performing such other procedures as we considered necessary in the circumstances.
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
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.
143
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
144
VILLAGE OF TEQUESTA, FLORIDA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
Pass
Federal Through
Pass Through CFDA Entity
Program Title Organization Number Number Expenditures
Federal Awards
U.S. Department of Justice
Coronavirus Emergency Supplemental Funding Florida Department of Law Enforcement 16.034 2021-CERF-PALM-7-5A-042 $ 43,509
Edward Byrne 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
1,655,455
Total U.S. Department of Treasury
1,705,020
TOTAL FEDERAL FINANCIAL ASSISTANCE
145
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.
146
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: Unmodified
Internal control over financial reporting:
Material weaknesses identified? ____ yes X no
Significant deficiencies identified not considered
to be material weaknesses? ____ yes X none reported
Noncompliance material to financial statements noted? ____ yes X no
Federal Programs
Internal control over major federal programs:
Material weaknesses identified? ____ yes X no
Significant deficiencies identified not considered
to be material weaknesses? ____ yes X none reported
major federal programs? Unmodified
Any audit findings disclosed that are required to
be reported in accordance with Uniform Guidance? ____ yes X no
AL Number Name of Federal Program or Cluster
21.027 U.S. Department of the Treasury -
Coronavirus Relief Fund
Dollar threshold used to distinguish between
type A and Type B federal programs: $750,000
Auditee qualified as low-risk auditee? ____ yes X no
State Financial Assistance Projects
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.
147
VILLAGE OF TEQEUSTA, FLORIDA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
SECTION II
FINANCIAL STATEMENT FINDINGS AND RESPONSES
None reported.
SECTION III
FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
None noted.
SECTION IV
STATE PROJECTS FINDINGS AND QUESTIONED COSTS
Not applicable.
148
VILLAGE OF TEQEUSTA, FLORIDA
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
STATUS OF PRIOR YEAR AUDIT FINDINGS
None noted.
149
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.
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
and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government
Auditing Standards
Internal Control over Compliance; Schedule of Findings and Questioned Costs;
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(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions
have been taken to address findings and recommendations made in the preceding annual financial audit report. There
were no findings or recommendations in the preceding annual financial report requiring correction.
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for
the primary government and each component unit of the reporting entity be disclosed in this management letter,
unless disclosed in the notes to the financial statements. The Village was incorporated in 1957 by laws of Florida
57-1915. There are no component units related to the Village.
m
Members of The American Institute of Certified Public Accountants
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures
and communicate the results of our determination as to whether or not the Village has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In
connection with our audit, we determined that the Village did not meet any of the conditions described in Section
218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition
condition, and our financial condition assessment was based in part on representations made by management and the
review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to
improve financial management. In connection with our audit, we did not have any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of
contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the
financial statements that is less than material but which warrants the attention of those charged with governance. In
connection with our audit, we did not have any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and
other granting agencies, the Mayor and Members of the Village Council, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
Bradenton, Florida
March 8, 2023
151
To the Honorable Mayor, Village Council
and Village Manager
Village of Tequesta, Florida
Statutes, regarding the investment of public funds during the year ended September 30, 2022. Management is
Our examination was conducted in accordance with attestation standards established by the American Institute of
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
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.
Bradenton, Florida
March 8, 2023
www.mjcpa.com
Members of The American Institute of Certified Public Accountants
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #8
ACFR FY2022-2023
Statement of Revenues, Expenses and
Changes in Net Position
(FY22/23 ending September 30, 2023)
Annual Comprehensive Financial Report
Fiscal Year Ended September 30, 2023
i
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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, 2023, 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, 2023, 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.
Basis for 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 Government 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 Statements 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.
Responsibilities of Management for 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
12 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 •FAX 941-747-6035•www.mjcpa.com
MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
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FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #9
RECONCILIATION OF ACTUAL AMOUNTS
TO SRF APPLICATION
Financial Statement Reconciliation
Village of Tequesta
Water Fund
Results of Operations
For the Fiscal Year Ended September 30
2625
Extracted from ACFR Page
20222023
Revenues:
Water Sales$ 6,579,570$ 7,037,927
Non-Operating Revenues
Investment Earnings(6,242) 307,757
Other Non-Operating Revenues
Gain on Disposal 6,803 11,125
Miscellaneous Revenue 37,409 39,131
44,212 50,256
Captial Contributions 108,464 149,246
Total Revenue$ 6,726,004$ 7,545,186
Expenses:
Operating 5,434,986 5,287,093
Less Depreciation (680,839) (676,786)
Net Operating Expenses less Depreciation 4,754,147 4,610,307
Net Income less Interest & Depreciation$ 1,971,857$ 2,934,879
FDEP SRF Loan Agreement
Project Number DW50270-1
Attachment #10
FINANCIAL PROJECTIONS FY25-29
Explanation of Projected Revenues &
Debt Coverage
-
386152000
44,60,
764,748102,971,286857,357113,929113,929
6,4,4,
2029
10,10,
$ $
929555000932
99,43,60,
400,723604,207426,916177,291280,896,359
6,4,3,
2028
10,10,
$ $
472958000552
97,42,60,
249,438279,553969,885566,403,333
6,3,3,
2027
10,049,00810,
$ $
0
3
95,01542,36260,000
564,613
9,709,1869,906,5636,408,6353,497,9282,933,315
eptember
S
2026
equesta
rojections
nded
P
T
E
r
$$
Yea
Water Fund
Operations
37,27215,000
e Fiscal
250,000564,269
Village of
th
9,380,8569,683,1286,324,1773,358,9512,794,682
2025
For
Attachment
$$
Revenues:Non-Operating Revenues Investment Earnings Other Non-Operating Revenues Miscellaneous RevenueCaptial ContributionsTotal Revenue Expenses:OperatingNet Income less Interest &
DepreciationDebt ServiceRemaining to payWater Sales is based upon the 3.5% increase committed to by the Village Council for all years presented. Personnel is increasing by 4% each
year. As Capital Charges collections are irregular so $60,000 is the amount selected. Interest rates are expected to continue their downward spiral. All other projections are completed
by utilizing a simple linear regression model. This takes into account past performance and brings it forward with a reasonable escalator.
Water Sales