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Documentation_Regular_Tab 03_6/12/2025
Agenda Item #3. Regular Council STAFF MEMO x Meeting: Regular Council - Jun 12 2025 Staff Contact: Jeffery Snyder, Finance Director Department: Finance Accept the Annual Comprehensive Financial Report (ACFR) for the Year Ended September 30, 2024. The Finance Department has successfully completed the Village's Annual Comprehensive Financial Report (ACFR). This report has been submitted to the Government Finance Officers Association (GFOA) for consideration for the Certificate of Achievement for Excellence in Financial Reporting—an honor the Village has proudly received for 42 consecutive years. As required by state law, the ACFR undergoes an annual audit by an independent Certified Public Accounting firm. This year marks the fourth consecutive audit conducted by our current auditors, Mauldin & Jenkins. They have prepared a brief presentation summarizing the results of the audit and are available to answer any questions you may have. This document and any attachments may be reproduced upon request in an alternative format by completing our Accessibility Feedback Form, sending an e-mail to the Village Clerk or calling 561- 768-0443. BUDGET AMOUNT N/A AMOUNT AVAILABLE N/A EXPENDITURE AMOUNT: N/A FUNDING SOURCES: N/A IS THIS A PIGGYBACK: ❑ Yes ❑x N/A DID YOU OBTAIN 3 QUOTES? ❑ Yes ❑x N/A COMMENTS/EXPLANATION ON SELECTIONN/A Accept the Annual Comprehensive Financial Report for the Year Ended September 30, 2024. TequestaPPT 2024 Village of Tequesta ACFR Page 22 of 426 Agenda LL .tom • • • • • }'1 UJ -..- 23 of 426 Agenda Item #3. L- O Q N re ca 'U O C6 O � a > a� .L4n _ Q > E v o to v O o N = E cc � O i OQj c Q L 4- a Q coLn 'u 'O O75 _ .N O � � U- N c6 '— � U f�6 .E O p 5 E U ro <t E -� c %— O O c6 O U Ln cn M O c6 N iJ bn .� .� � N O > � .qA p oC 2 Cf Page 24 of 426 Agenda Item #3. � O s v •_ E O > }' N Q to O .N N c U L _0 cn L (3)CU - > U O a o D J O LLrn L �C o wo o .� O O o O > fV V) c ,�� v Q a cc W _N N v O v U •u ' Lq O > +J c N L a Q � 4-' N i � O N E O •� O Q +-+ � a) _ L _O > — L S O 'cn O L, G a_+ cn bD U O ca N 00 — L IL LU O -0 O .N O O L*l v L .— .N -o LL v GJ J O f0 U X L `� LL J L LL O Page 25 of 426 Agenda Item #3. M Ln i w Z N W U. Lu + O O � UJ O � O J W Q � M Q Q 1• ) O Z Q v a LL u W LL _ _ W LU OC W O Z 0 Q H H W lid© N1 > U. 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J U LU �' a m LU o LU C z Z u.i M M a LULL N a GJ y O i 00 LL N Page 34 of 426 Agenda Item #3. c O �o c O -o v u O o Y (D D Y c NN ,n N a � E a; o O w c c c O N a M o o > > I; o m v 0 c t ro a� c In O M 0 O C7 c c ii M E E L � O CL (n00 o N oc H mO LL � i 00 L r rH ro L / O C O �p nl to Ln Q1 O N00 n Q1 O O O Ln loom Page 35 of 426 Agenda Item #3. 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R* O O t +O+ O c 4 c Q1 • V m m 0 r-I 1 � 1 1, i 1 i / 1 1 1 Agenda vPG� OF T�QG�'rA 9 / et cq coue� VILLAGE OF TEQUESTA, FLORIDA ANNUAL COMPREHENSIVE REPORT may- - FISCAL �i • ENDED SEPTEMBER 30,, 2024 Page 43426 Agenda Item #3. 4,.` . . � r 2024 Village of Tequesta Council L to R: Vice-Mayor Rick Sartory, Mayor Molly Young, Council Member Patrick Painter, Council Member Laurie Brandon, Council Member Jayson E.French Page 44 of 426 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Prepared By Finance Department The Village of Tequesta,Florida Page 45 of 426 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS 1. INTRODUCTORY SECTION Letter of Transmittal i Certificate of Achievement for Excellence in Financial Reporting vi Organization Chart vii List of Principal Officials viii 11. FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS (Required Supplementary Information) 4-17 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 18 Statement of Activities 19 Fund Financial Statements Balance Sheet—Governmental Funds 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances— Governmental Funds 22 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 23 Statement of Net Position—Proprietary Funds 24 Statement of Revenues, Expenses and Changes in Net Position—Proprietary Funds 25 Statement of Cash Flows—Proprietary Funds 26 Statement of Fiduciary Net Position—Fiduciary Funds 27 Statement of Changes in Fiduciary Net Position—Fiduciary Funds 28 Notes to Basic Financial Statements 29-87 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule—General Fund 88 Note to the Budgetary Comparison Schedule 89 Firefighters' Pension Trust Fund Schedule of Changes in the Village's Net Pension Liability and Related Ratios 90 Schedule of Village Contributions 91 Schedule of Investment Returns 92 Police Officers' Pension Trust Fund Schedule of Changes in the Village's Net Pension Asset and Related Ratios 93 Schedule of Village Contributions 94 Schedule of Investment Returns 95 General Employees' Pension Trust Fund Schedule of Changes in the Village's Net Pension Liability(Asset)and Related Ratios 96 Schedule of Village Contributions 97 Schedule of Investment Returns 98 Schedule of Changes in Total OPEB Liability and Related Ratios 99 Schedule of Village's Proportionate Share of the Net Pension Liability— Florida Retirement System Pension 100 Schedule of the Village's Proportionate Share of the Net Pension Liability— Retiree Health Insurance Subsidiary Program 101 Schedule of the Village's Contributions—Florida Retirement System Pension Plan 102 Schedule of the Village's Contributions—Retiree Health Insurance Subsidy Program 103 Page 46 of 426 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS 11. FINANCIAL SECTION (CONTINUED) SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Combining Balance Sheet—Nonmajor Governmental Funds 104 Combining Statement of Revenues,Expenditures and Changes in Fund Balances— Nonmajor Governmental Funds 105 Budgetary Comparison Schedule—Building Fund 106 Budgetary Comparison Schedule—Special Law Enforcement Trust Fund 107 Budgetary Comparison Schedule—Capital hnprovement Fund 108 Budgetary Comparison Schedule—Capital Projects Fund 109 Combining Statement of Fiduciary Net Position 110 Combining Statement of Changes in Fiduciary Net Position 111 111. STATISTICAL SECTION Net Position by Component 112 Changes in Net Position 113 Fund Balances, Governmental Funds 115 Changes in Fund Balances, Governmental Funds 116 Assessed and Estimated Actual Value of Taxable Property 117 Property Tax Rates—All Direct and Overlapping Governments 118 Principal Property Taxpayers 119 Property Tax Levies and Collections 120 Ratios of Outstanding Debt by Type 121 Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita 122 Computation of Legal Debt Margin 123 Direct and Overlapping Governmental Activities Debt 124 Demographic and Economic Statistics 125 Principal Employers—Palm Beach County 126 Full-time-Equivalent Village Government Employees by Function/Program 127 Operating Indicators by Function/Program 128 Capital Asset Statistics by Function/Program 129 IV. 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 Perfonned in Accordance with Government Auditing Standards 130 Schedule of Findings and Responses 132 Independent Auditor's Management Letter 134 Independent Accountant's Report 136 Page 47 of 426 Agenda Item #3. r.� INTRODUCTORY SECTION Page 48 of 426 Agenda Item #3. Village of Tequesta 345 Tequesta Drive 561-768-0700 Tequesta, FL 33469 www.tequesta.org March 10, 2025 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, 2024. This report provides the Village's Council, staff, our citizens, and other interested parties with detailed information concerning the financial condition and activities of the Village government. State law requires that all general-purpose local governments annually publish a complete set of financial statements within nine months of the fiscal year close. These financial statements are presented in conformity with generally accepted accounting principles (GAAP) and audited by an independent audit firm in accordance with generally accepted auditing standards and government auditing standards. We believe that this report complies with these requirements and upholds the the Village's strong tradition of full financial transparency. This committmetn is demonstrated through the financial analysis, exhibits, and statistical tables included in the report. Purpose of the Annual Comprehensive Financial Report This report serves as a critical tool for decision-making and accountability,helping to: • Compare actual financial results with the legally adopted budget. • Assess the Village's financial condition and operational performance. • Ensure compliance with finance-related laws, rules, and regulations. • Evaluate the efficiency and effectiveness of Village operations. Responsibility for the accuracy, completeness, and fairness of this report rests with the management of the Village. We affirm that the presented data is accurate in all material respects, fairly represents the Village's financial position and operations, and includes all necessary disclosures to provide a clear understanding of the Village's financial activities. Mauldin & Jenkins, Certified Public Accountants, have issued an unmodified ("clean") opinion on the Village of Tequesta's financial statements for the fiscal year ended September 30, 2024. The independent auditors' report is located at the front of the financial section of this report. Following the auditors' report, Management's Discussion and Analysis (MD&A) provides a narrative introduction, overview, and analysis of the financial statements. The MD&A complements this letter and should be read in conjunction with it. Page 49 of 426 i Agenda Item #3. The Village of Tequesta's Profile The Village of Tequesta, established on June 4, 1957, is a municipal corporation under Special Act 57-1915, Laws of Florida. Covering approximately two square miles in northern Palm Beach County, the Village is nearly fully developed. Bordered by 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, Tequesta's growth potential is limited by its natural and municipal boundaries. However, the Village retains the authority to expand through annexation, as permitted by state law. Governmental Structure The Village operates under a Council-Manager form of government. Legislative and policy-making authority is vested in a five-member Village Council, elected at large,with members selecting a Mayor at their first annual organizational meeting. Council members serve two-year terms, with three seats up for election every other year. The Council appoints a Village Manager, who oversees daily operations and staff management. Services Provided The Village provides a comprehensive range of municipal services, including: • Public Safety—Police and fire protection • Community Development—Building inspections,planning, and zoning • Public Works—Road and infrastructure maintenance, streetlights, sidewalks • Utilities—Water utility services and stormwater operations • Environmental Services—Residential refuse and recycling(via contracted services) • Recreation&Cultural Activities—Parks, community programs, and special events Page 50 of 426 ii Agenda Item #3. Financial Overview Accounting and Internal Controls Village management maintains an internal control system to safeguard assets and ensure compliance with financial reporting requirements. While no system can provide absolute assurance, our internal controls aim to achieve: • Protection of Village assets against loss,theft, or misuse. • Accurate financial reporting in compliance with GAAP. • Efficient use of resources,balancing cost with effectiveness. Single Audit Compliance As a recipient of federal, state, and county financial assistance, the Village is required to maintain internal controls that ensure compliance with program regulations. For the fiscal year ended September 30, 2024, the Village was not subject to an audit under the Uniform Guidance or the Florida Single Audit Act 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. Budgetary Controls The Village Council is required to adopt an annual budget before October 1 of each fiscal year. In compliance with state law, the approved budget is posted on the Village's website within 30 days of adoption to ensure transparency. This annual budget serves as the foundation for the Village of Tequesta's financial planning and control. The objective of budgetary controls is to ensure expenditures remain within appropriated limits while maintaining financial integrity and accountability. To achieve this, the Village implements the following safeguards: • Legally Appropriated Budget: Activities for the General Fund, Special Revenue Funds, and Capital Project Funds are included in the annual appropriated budget to maintain financial oversight and regulatory compliance. • Fund-Based Budgeting: The budget is prepared by fund, function (e.g., public safety), and department(e.g.,police) and is formally adopted by fund total. • Expenditure Oversight: Department Directors are authorized to transfer funds within their department with the approval of the Village Manager. However, transfers between funds or changes exceeding the appropriated amounts require a formal budget amendment approved by the Village Council. • Legal Level of Control: The legal level of budgetary control is at the fund level, ensuring that appropriations are not exceeded without formal approval from the governing body. • Monthly Budget Reviews: The Finance Department conducts monthly financial reviews to compare actual expenditures to budgeted amounts, providing updates to the Village Council and ensuring fiscal responsibility. Page 51 of 426 iii Agenda Item #3. • Capital Improvement Planning (CIP): The budget incorporates a multi-year Capital Improvement Plan (CIP) to guide long-term infrastructure investments and ensure sustainable financial planning for large-scale projects. • Performance-Based Budgeting: The Village is working towards integrating performance-based budgeting to align financial resources with service outcomes, ensuring taxpayer dollars are used effectively. • Grant and Special Revenue Oversight: All grant funds and restricted revenues are tracked separately to ensure compliance with grantor requirements, state statutes, and federal regulations. • Reserves and Emergency Preparedness: The budget maintains a healthy reserve policy, ensuring the Village is prepared for emergencies, economic downturns, and unforeseen capital expenditures. These budgetary controls ensure that financial resources are allocated effectively, legal requirements are met, and operational needs are balanced with long-term financial stability. Economic Overview As of April 1,2024,the Village of Tequesta had a population of 6,093. The Village primarily consists of middle-to-upper income suburban families and has a small commercial section with no major industries. Economic Indicatiors • Palm Beach County Unemployment Rate(Sept. 2024):3.6% (up from 3.3%in 2023). • Florida Unemployment Rate (Sept. 2024) 33% (up from 2.8% in 2023). • U.S. Unemployment Rate (Sept. 2024)4.1% (up from 3.8% in 2023). The housing market is slowing as the fed works to keep the economy our of recession. In September the fed fund rates decreased by 50 basis points to 4.75% to 5.00% and pushed mortgage rates a little lower to an average of 6.24%. Housing starts have decreased (-12.8% in Florida between September 2023 and September 2024, according to the Florida Realtors). Per the Palm Beach County Property Appraiser's Office, gross taxable value increased roughly 10% due to construction and existing home sales which adjusted the save our homes protections. Strategic Plan and Major Initiatives The Village Council continues to focus on: • Maintaining operational excellence accross all services. • Upgrading critical infrastructure, including roads and utilities • Preserving Tequesta's unique character and community spirit. • Ensuring long-term financial stability through responsible fiscal management. Major Initiatives for 2025 and Beyond: • Upgrading the Water Treatment Plant for energy efficiency and reliability. • Expanding water infrastructure, including well rehabilitiation and pipline improvements. • Establishing a Vehicle Replacement Fund to smooth out the payments for Village rolling stock. • Enhancing local business partnerships to support economic growth. • Continuing street and sidewalk maintenance programs. Page 52 of 426 iv Agenda Item #3. 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, 2023. The Village has received this prestigious award for 42 consecutive years. The Village must publish an easily readable and efficiently organized annual comprehensive financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe that our current annual comprehensive financial report will continue to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. We extend our gratitude to the staff of the Finance Department and all Village departments for their cooperation and contributions. A special thank you to Ms. Tatiana Racanati, Assistant Finance Director, for her dedication to this report's completion. Lastly, we appreciate the Mayor and Village Council for their leadership, commitment to financial excellence, and community service. Respectfully submitted, Jeremy Allen, ICMA-CM Jeff Snyder, CPA, CGMA Village Manager Finance Director Page 53 of 426 v Agenda Item #3. Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Tequesta Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 �. P. ;Ofe� Executive Director/CEO Page 54 of 426 vi Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2024 Residents of Tecluesta Y IlaRc Council Village Manager VillaltcAttOmcy ExecutiveAssletant Departments Human Resources Village Clerk Finance GeneraIGovernment Community Building 6evelopment I?rl:rr iti.F.r;:v� :�1 IT Code Enforcement Police Department Fire Rescue f EMS Pa1ic Warts Leisure Services Utilities Water Utility System Starmwater trtllity System Page 55 of 426 vii Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30,2024 VILLAGE COUNCIL Molly Young Mayor Rick Sat tory Vice-Mayor Laurie Brandon Council member Jason E.French Council member Patrick Painter Council member 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 Jeremy Hubsch Community Development Director Wayne Cameron Building Director Greg Corbitt Parks and Recreation Director Marjorie Craig,PE Utilities Director VILLAGE INDEPENDENT AUDITORS Mauldin&Jenkins,LLC Page 56 of 426 viii Agenda Item #3. r t� FINANCIAL SECTION Page 57 of 426 Agenda Item #3. INDEPENDENT AUDITORS' REPORT Page 58 of 426 Agenda Item #�T TV MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor,Village Council and Village Manager Village of Tequesta,Florida Report on the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida (the"Village") as of and for the year ended September 30, 2024, 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, 2024, 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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1401 MANATEE AVENUE WEST,SUTTE 1200•BRADENTON,FLORIDA 34205•941-747-4483•FAX 941-747-6035•www.mjc a.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC A CCOUNTANTS age 59 of 426 Agenda Item #3. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis (on pages 4 through 17), 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 88 through 103) be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Page 60 of 426 2 Agenda Item #3. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village's basic financial statements. The accompanying combining and individual nonmajor fund financial statements 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 are fairly stated, in all material respects,in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work 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 10, 2025, on our consideration of the Village's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Village's internal control over financial reporting and compliance. Bradenton, Florida March 10, 2025 Page 61 of 426 3 Agenda Item #3. r' MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) Page 62 of 426 Agenda Item #3. Management's Discussion and Analysis 2024 Village of Tequesta, Florida Management's Discussion and Analysis As management of the Village of Tequesta, we offer the following narrative overview and analysis of the financial activities of the Village of Tequesta (Village) for the fiscal (FY) year ended September 30, 2024. 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 $55,375,424. Of total net position, $20,980,290 (37.9%) is unrestricted and may be used to meet the ongoing obligations to the citizens and creditors. • The Village's total net position increased during the current period. Net position for governmental activities increased by $2,501,749, due mainly to robust sales of existing residential homes which reset the homestead exemptions and increases in property values. The business-type activities net position increased by $3,988,506, due mainly to increases in user fees to fund improvements in infrastructure, and better than projected interest revenues. • At the close of the current fiscal year, the Village's governmental funds reported a change in combined fund balances of $1,059,406 due to the building permit fees for the construction of a high-end condominium situated on the Atlantic Ocean, increases in ad valorem taxes due to sales of existing residential property significantly contributed to this increase, and strong investment earnings due to active investing and the rate increases. • At the end of the current fiscal year, the total fund balance for the General Fund was $8,803,055. Of this balance, $761,073 was non-spendable for inventories and prepaid expenditures; $301,000 was restricted for debt service and $500,000 was committed to hurricane/disaster relief; and $7,240,982, or 42.2% 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 $7,740,982. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Village's basic financial statements. The Village's basic financial statements consist of three components: 1) 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 details to support the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the Village's finances,in a manner similar to a private-sector business. The statement of net position presents financial information on all of the Village's assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village of Tequesta is improving or deteriorating. Page 63 of 426 4 Agenda Item #3. Management's Discussion and Analysis 2024 The statement of activities presents information showing how the Village's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cashflows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include general government, public safety, transportation and leisure services. The business-type activities of the Village include water, stormwater and refuse and recycling. The government-wide financial statements can be found on pages 18-19 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 states 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. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements utilize the modified accrual basis of accounting which focuses on near-term inflows and ou flows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information is useful in assessing a government's near-term financing requirements. Because the focus of governmental funds is different than that of government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village maintains five individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund which is always considered a major fund. Data from the other four governmental funds is combined into a single aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report. The Village adopts an annual appropriated budget for its governmental funds. A budgetary comparison schedule has been provided for the General Fund to demonstrate compliance with this budget. The Village's governmental fund financial statements can be found on pages 20-23 of this report. Proprietary Funds. The Village maintains one type of proprietary fund— enterprise funds. Enterprise funds utilize the full accrual basis of accounting which is the same basis used to report the same functions presented as business-type activities in the government-wide financial statements. The Village uses enterprise funds to account for its water, stormwater, and refuse&recycling funds. Page 64 of 426 5 Agenda Item #3. Management's Discussion and Analysis 2024 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 Storinwater Fund,major funds, as well as the Refuse and Recycling Fund, a non-major fund. The basic proprietary fund financial statements can be found on pages 24-26 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the Village. Fiduciary funds are not reported in the government-wide financial statement because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village maintains one type of fiduciary fund — a Pension trust fund which is used to report resources held in trust for retirees and beneficiaries covered by the Public Safety Pension Plan (which includes the Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund) and the General Employees' Pension Plan. The fiduciary fund financial statements can be found on pages 27-28 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 29-87 of this report. Other information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village's progress in funding its obligation to provide pension benefits and OPEB benefits to its employees, as well as the Village's net pension liability (asset) and related ratios, contributions and pension investment returns. Required supplementary information can be found on pages 88-103 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 104-111 of this report. Government-wide Overall Financial Analysis Net position over time may serve as a useful indicator of a government's financial position. In the case of the Village of Tequesta, assets and deferred outflows of resources exceeded liabilities and deferred inflows at the close of the most recent fiscal year. This change is discussed below. Village of Tequesta's Total Net Position The Village of Tequesta's total assets and deferred outflows exceeded total liabilities and deferred inflows by $55,375,424 at the close of the 2024 fiscal year. Net Position in governmental activities recorded an increase of 11.0%. The Village's business-type activities recorded a 15.3% increase in total net position. This overall increase of 10.2% is the result of the overall results of operations. The majority of this change was due to an increase in real estate transactions which increased (reset) the taxable value of residential property for ad valorem taxes, increase in interest earnings, and the ramping up for water infrastructure improvements. Page 65 of 426 6 Agenda Item #3. Management's Discussion and Analysis 2024 Village of Tequesta's Net Position Governmental Activities Activities Total 2024 2023I I Current and other assets $ 15,108,661 $ 12,574,143 $ 13,187,064 $ 10,893,905 $ 29,295,725 $ 23,468,048 Capital assets,net 19,789,087 18,058,974 19,531,179 18,174,184 39,320,266 36,233,158 Total assets 34,897,748 30,633,117 32,718,243 29,068,089 67,615,991 59,701,206 Total deferred outflows of resources 4,161,075 5,219,671 625,226 838,539 4,786,301 6,058,210 Noncurrent liabilities 10,567,206 10,921,930 1,623,023 2,203,279 12,190,229 13,125,209 Other liabilities 1,208,072 1,209,725 1,406,428 1,039,627 2,614,500 2,249,352 Total liabilities 11,775,278 12,131,655 3,029,451 3,242,906 14,804,729 15,374,561 Total deferred inflows of resources 2,008,708 1,961,214 213,431 525,291 2,222,139 2,486,505 Net position Net investment in capital assets 13,516,727 11,470,215 17,495,935 16,026,834 31,012,662 27,497,049 Restricted Pension Asset 1,272,557 1,013,169 - - 1,272,557 1,013,169 Infrastructure 401,490 361,199 - - 401,490 361,199 Debt Service 301,000 294,000 420,915 406,556 721,915 700,556 Building 728,931 1,052,159 - - 728,931 1,052,159 Law Enforcement 257,579 298,778 - - 257,579 298,778 Unrestricted 8,796,553 8,283,568 12,183,737 9,678,691 20,980,290 17,962,259 Total net position $ 25,274,837 $ 22,773,088 $ 30,100,587 $ 26,112,081 $ 55,375,424 $ 48,885,169 The largest portion of the Village's total net position (56.0%) represents investments in capital assets (e.g., land, buildings, machinery and equipment), less depreciation and any related outstanding debt and deferred inflows/outflows used to acquire those assets. The Village uses these capital assets to provide services to citizens; consequently, they are not available for future spending. Although the Village's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Village's net position (6.1%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of$20,980,290 is unrestricted and may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of the current fiscal year, the Village is able to report positive balances in all categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. Page 66 of 426 7 Agenda Item #3. Management's Discussion and Analysis 2024 Village of Tequesta Components of Net Position I Restricted ■2023 ■2024 Unrestricted Net Investment in capital assets $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 Page 67 of 426 s Agenda Item #3. Management's Discussion and Analysis 2024 Village of Tequesta's Changes in Net Position PositionVillage of Tequesta Changes in Net Governmental Business-type Total Activities Activities 2024 2023I I20242023 Revenues: Program Revenues: Charges for Services $ 3,548,253 $ 4,049,386 $ 9,766,656 $ 8,132,497 $ 13,314,909 $ 12,181,883 Operating Grants&Contributions 71,533 151,370 2,456 - 73,989 151,370 Capital Grants&Contributions 129,253 171,857 289,512 163,631 418,765 335,488 General Revenues: Ad valorem Taxes 11,703,838 9,530,215 - - 11,703,838 9,530,215 Other Taxes 2,419,262 2,365,480 2,419,262 2,365,480 Franchise fees on gross receipts 592,096 607,485 592,096 607,485 Unrestricted intergovernmental 1,079,260 1,110,601 1,079,260 1,110,601 Unrestricted investment earnings 811,938 551,106 602,373 312,564 1,414,311 863,670 Gain(loss)on sale of capital assets 61,597 53,480 21,731 18,500 83,328 71,980 Other Miscellaneous 54,169 37,336 47,901 39.131 102,070 76,467 Total Revenues 20,471,199 18,628,316 10,730,629 8,666,323 31,201,828 27,294,639 Expenses: General government 3,740,337 3,423,592 - - 3,740,337 3,423,592 Public safety 10,789,074 9,511,503 10,789,074 9,511,503 Transportation 1,815,814 1,847,580 1,815,814 1,847,580 Leisure Services 1,485,463 1,345,068 1,485,463 1,345,068 Interest on long-term debt 138,762 147,503 138,762 147,503 Water utility services - - 5,518,894 5,389,292 5,518,894 5,389,292 Stortnwater services - 605,901 497,582 605,901 497,582 Refuse&recycling services - - 617,328 600,664 617,328 600,664 Total Expenses 17,969,450 16,275,246 6,742,123 6,487,538 24,711,573 22,762,784 Increase in net position before transfers 2,501,749 2,353,070 3,988,506 2,178,795 6,490,255 4,531,855 Transfers - (516,530) - 516,530 - - Increase in net position 2,501,749 1,836,540 3,988,506 2,695,315 6,490,255 4,531,855 Net position-beginning 22,773,088 20,936,548 26,112,081 23,416,766 48,885,169 44,353,314 etposition-ending $ 25,274,837 $ 22,773,088 $ 30,100,587 $ 26,112,081 $ 55,375,424 $ 48,885,169 For the fiscal year ended September 30, 2024, the Village's overall net position increased from the prior fiscal year. Revenues increased in the governmental activities as well as in business-type activities. Combined entity-wide revenues exceeded expenses for the fiscal year ended September 30, 2024 by $6,490,255. Combined revenues entity-wide increased between FY 2023-24 and FY 2022-23 due to increases in ad valorem taxes (property values appreciating including reconstruction and property sales that reset the homestead exemptions) and strong investment returns due to active investing offset reductions in charges for services (plan review fees for a large construction project completed during the prior fiscal year) plus a reduction in intergovernmental revenues (sales taxes) and franchise fees. Revenues increased in business-type activities due to an increase in water utility fees which are earmarked for significant infrastructure improvement projects on the horizon. Also impacting the business-type activities were increases in interest income as well as modest increases in expenses as the Water Fund pivots to capital improvements (an asset) instead of repair and maintenance (an expense). Governmental Activities-Expenses and Program/General Revenues Governmental activities. As previously stated, overall revenue from governmental activities increased from the prior year due largely from property sales, new construction and interest income due to favorable rates and active investing. The results of the Village's operations allowed for an overall increase in net position of $2,501,749. Page 68 of 426 9 Agenda Item #3. Management's Discussion and Analysis 2024 Expenses and Program/General Revenues- Governmental Activities in Thousands $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Q4�`a� ■Revenues ■Expenses The Village's programs/functions include General Government, Public Safety, Transportation and Leisure Services. The net cost shows the extent to which the Village's general revenues support each of the Village's programs/functions. The net cost of all governmental activities this year was $14,220,411, a 19.5% increase from the prior period. This is mainly a result of adding additional Firefighter/Paramedic, information technology improvements, and the effects of inflation on prices. As shown on the Statement of Activities, functions directly benefiting from the programs generated revenue of$3,749,039 and the remaining net cost of all governmental activities were financed by ad valorem taxes as well as other taxes and fees (general revenues). Page 69 of 426 10 Agenda Item #3. Management's Discussion and Analysis 2024 The following is a comparison of revenues by source for governmental activities for fiscal year 2024 and 2023. Revenues by Source- Governmental Activities in Thousands $12,000 2023 $10,000 2024 $8.000 $6,000 $4,000 $2.000 $0 CP 10* J Business-type Activities. The Village's business-type activities reported program revenues exceeding expenses by $3,316,501. General revenues were $672,005. This resulted in an increase in net position of $3,988,506 over the prior year. Total Rev enues/Expenses-Business-Type Activities in Thousands $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Water Utility Refuse&Recycling Stortnwater Utility ■Revenue ■Expenses i Page 70 of 426 11 Agenda Item #3. Management's Discussion and Analysis 2024 As shown in the chart below, revenues from charges for services reported in business-type activities increased by $1,634,159 from the prior year. An increase in water rates and sales in the Water Utility Fund resulted in a significant portion of the total increase. As stated earlier, this increase was necessary to replace the aging infrastructure used for water distribution. Stormwater Utility reported increases in revenues of 7.7% and Refuse and Recycling revenues increased by 3.5% as contractually required. General Revenues and transfers (non-operating) decreased by (24.2)% over the previous fiscal year due to a transfer from the General Fund to the Stormwater Utility fund for a much-needed system repairs in FY 2023. Revenues by Source-Business-Type Activities in Thousands $10,000 $9,000 $8,000 $7,000 $6,000 2023 $5,000 $4,000 $3,000 2024 2023 $2,000 $1,000 $0 - Charges for Seiiices Non-operating Financial Analysis of the Village's Funds As noted earlier,the Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds: The focus of the Village's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to be used for a particular purpose by either an external party, the Village itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the Village of Tequesta's Council. At September 30, 2024 the Village's governmental funds reported total combined fund balances of $12,026,211. Of this balance $7,240,982 (60.2%) of the combined governmental fund balances is unassigned and is available for spending at the Village's discretion. Approximately 19.3% or $2,318,562 is assigned or committed, with the largest portion assigned to the subsequent year's budget. Approximately 14.0% or $1,689,000 is restricted for a particular purpose (i.e. debt service, Building Fund, Law Enforcement Trust funds, etc.). $777,667 is in nonspendable form (i.e. inventories, prepaid items, etc.). Total combined fund balances have increased(9.7)% over the prior year. Page 71 of 426 12 Agenda Item #3. Management's Discussion and Analysis 2024 General Fund Components of Fund Balance September 30,2024 and 2023 2023 ■Committed Nonspendable. ■Restricted ■Assigned ■Unassigned 2024 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 Governmental Funds Components of Fund Balance September 30, 2024 and 2023 2023 ■Committed ■Nonspendable ■Restricted ■Assigned ■Unassigned 2024 $0 $2,000,000 $4,000.000 $6,000,000 $&000,000 Page 72 of 426 13 Agenda Item #3. Management's Discussion and Analysis 2024 The General Fund is the chief operating fund of the Village. At the end of the current fiscal year the total fund balance was $8,803,055, an increase of $774,319 over the prior year. Unassigned fund balance of $7,240,982, increased by $1,471,948 (25.5%) over the prior year. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents approximately 44.6% of fiscal year 2024 General Fund expenditures. The Village's policy is to keep unassigned fund balance at a minimum of three months (25.0%) or of expenditures (approximately $4.9 million) due to our proximity to the Atlantic Ocean and the very real threat of hurricanes. This leaves nearly$2.4 million available for one-time use for necessary projects. The amount of General Fund revenue by type, their percentage of the total and the amount of change compared to last fiscal year are shown in the following schedule: General Fund Revenues-by Source General Fund Revenues Change Revenue SourcesI2023 d valorem taxes $ 11,703,838 62.7% $ 2,173,623 22.8% $ 9,530,215 Other taxes 1,531,174 8.2% (834,306) (35.3)% 2,365,480 Charges for services 1,669,063 8.9% 48,815 3.0% 1,620,248 Intergovernmental 1,079,260 5.8% (31,341) (2.8)% 1,110,601 Intragovemmental 902,991 4.8% 39,917 4.6% 863,074 Franchise fees 592,096 3.2% (15,389) (2.5)% 607,485 Licenses and permits 8,390 % (320) (3.7)% 8,710 Rents and Royalties 211,153 1.1% (9,797) (4.4)% 220,950 Fines and forfeitures 14,354 0.1% 1,304 10.0% 13,050 Misc. grants and contributions 250,642 1.3% (88,530) (26.1)% 339,172 Investment earnings 689,048 3.7% 204,223 42.1% 484,825 Total Revenue $ 18,652,009 100% $ 1,488,199 8.7% $ 17,163,810 As noted in the table above, total General Fund revenues increased by $1,488,199 (8.7%). The largest changes were due to increased ad valorem tax revenue resulting from increased property values, new construction; and property sales which resets the homestead exemption ceilings plus investment earnings which offset losses in other taxes, sales taxes (intergovernmental) and grants and contributions. Expenditures in the General Fund are shown in the following schedule: Function/ClassificationGeneral Fund Expenditures by FunctionChange 2024 ' of I General government $ 3,532,433 21.8% $ 305,427 9.5% $ 3,227,006 Public Safety 8,594,718 52.9% 592,645 7.4% 8,002,073 Transportation 1,564,417 9.6% 51,231 3.4% 1,513,186 Leisure services 1,219,536 7.5% 119,429 10.9% 1,100,107 Debt service 558,323 3.4% (33,039) (5.6)% 591,362 Capital outlay 769,852 4.7% (422,869) (35.5)% 1,192,721 Total expenditures $ 16,239,279 100% $ 612,824 3.9% $ 15,626,455 Page 73 of 426 14 Agenda Item #3. Management's Discussion and Analysis 2024 Total General fund expenditures increased from the prior year by $612,824 or 3.9%. Information Technology accounted for a significant portion of the general government increase dedicated to enhancing cyber security. The increase in public safety included two new firefighters and union negotiated raises. The large change in Leisure services is related to the operation of the new community center including classes (paying for instructors) which are very well attended. The Village paid off a loan for the purchase a pumper truck during the prior year which accounted for the$(293,408)reduction in debt service payments. The Village's purchase of a new pumper truck during the current fiscal year was offset by the purchase of a ladder truck for the Fire Department during the year resulted in the decrease of$422,869 or 35.5% of capital expenditures. Below is a graphical presentation of how the Village expends funds and how they compare to the prior period. General Fund-Expenditures by Source in Thousands $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2024 2023 ,ak, !N At September 30, 2024, ending fund balances for the Non-major Special Revenue funds are as follows: Building Fund - $745,525; Special Law Enforcement Fund - $257,579. The ending fund balances in the Non-major Capital Projects Funds are as follows: Capital Projects Fund - $1,388,527, Capital Improvement Fund - $831,525. Fund balances in these funds are restricted or assigned for capital projects/improvements; public safety/enforcement of the building code. The Building Fund derives its revenue primarily from building permit fees, while the Special Law Enforcement Fund receive its revenue from the U.S. Department of Justice from asset forfeitures/seizures. The Capital Projects Fund receives its funding from the infrastructure sales tax and the water utility tax while the Capital Improvement Fund receives revenue primarily from capital grants and transfers-in from the General Fund plus other funds. General Fund Budgetary Highlights The General Fund original budgeted expenditures were increased by $992,110, the majority of which was for the purchase of a pumper fire truck. Unfortunately, this fire truck was casualty of the supply chain issues and was not completed and delivered until this year. The General Fund expenditures were less than appropriations by $447,025 or 2.7% the vast majority of this is the first year's operations of the Comprehensive Planning Department and the change in the Tequesta Festival. Page 74 of 426 15 Agenda Item #3. Management's Discussion and Analysis 2024 Proprietary funds: The Village's proprietary funds provide the same type of information found in the government-wide financial statements, the main difference is the basis of accounting utilized. Proprietary funds use the full accrual basis of accounting while the governmental funds utilize the modified accrual basis of accounting. The table below summarizes the operating income (loss) and the change in net position for each of the Village's proprietary funds. At the end of the year, the total net position of the proprietary funds was $30,100,587 and an increase of $3,988,506 from the prior period as shown below. Other factors concerning the finances of this major fund have already been addressed in the discussion of the Village's business-type activities. Proprietary Change in Operating Income i Position Operating Income i Position 2024 20232024 2023 Water $ 3,178,716 $ 1,750,834 $ 4,019,777 $ 2,155,894 Stormwater (43,564) 24,615 (20,796) 564,491 Refuse and Recycling (23,175) (28,291) (10,475) (25,070) $ 3,111,977 $ 1,747,158 $ 3,988,506 $ 2,695,315 Capital Assets and Debt Administration Capital assets: The Village's capital assets for its governmental and business-type activities total $39,320,266 (net accumulated depreciation) as of September 30, 2024. The Village acquired $5,321,269 in assets during the year and disposed of$737,993 during the year. Additional information on the Village's capital assets can be found in Note 3D, Capital Assets, starting on page 51 of this report. 2024Capital Assests Governmental Activities Business-type Activities Total 2023 2024 2023 2024 2023 Land $ 634,017 $ 634,017 $ 83,335 $ 83,335 $ 717,352 $ 717,352 Construction in progress 956,203 25,524 2,922,314 1,559,852 3,878,517 1,585,376 Buildings 14,752,547 14,693,652 972,980 972,980 15,725,527 15,666,632 Improvements 2,691,348 2,509,454 58,720 58,720 2,750,068 2,568,174 Infrastructure 6,045,568 5,444,760 38,554,439 37,920,088 44,600,007 43,364,848 Machinery&Equipment 6,387,219 5,987,473 2,291,766 2,094,975 8,678,985 8,082,448 Intangibles - - 48,649 48,649 48,649 48,649 Other-K-9 20,549 20,549 - - 20,549 20,549 Total capital assets 31,487,451 29,315,429 44,932,203 42,738,599 76,419,654 72,054,028 Less accumulated depreciation (11,698,364) (11,256,455) (25,401,024) (24,564,415) (37,099,388) (35,820,870) Total capital assets,net $ 19,789,087 $ 18,058,974 $ 19,531,179 $ 18,174,184 $ 39,320,266 $ 36,233,158 Page 75 of 426 16 Agenda Item #3. Management's Discussion and Analysis 2024 Noncurrent liabilities: At the end of the current fiscal year, the Village had a total of $13,145,104 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, not the full faith and credit of the Village. The table below summarizes the Village's debt position. In accordance with GASB Statements No's. 68 and 75,the Village recognized a net pension liability(NPL) of $3,375,496 and a total OPEB liability of $898,571, respectively. The Village is presenting the NPL and OPEB liability as separate components of the noncurrent liabilities on the face of the financial statements to present more clearly the Village's long-term pension and other post-employment benefit obligations. A more detailed explanation can be found in Note 3.K—Noncurrent Liabilities. GovernmentalL Noncurrent Liabilities 110 Business-type 2023 Notes payable $ 6,111,000 $ 6,405,000 $ 1,546,008 $ 1,952,564 $ 7,657,008 $ 8,357,564 Financed purchases 141,998 183,758 - - 141,898 183,758 Compensated absences 928,014 836,773 144,117 127,693 1,072,131 964,466 Total OPEB Liability 711,295 651,857 187,276 168,904 898,571 820,761 Net Pension Liability 3,183,959 3,183,959 191,537 385,674 3,375,496 3,569,633 Total Noncurrent Liabilities $ 11,076,166 $ 11,261,347 $ 2,068,938 $ 2,634,835 $ 13,145,104 $ 13,896,182 Economic Factors and Next Year's Budgets and Rates The following economic factors currently affect the Village of Tequesta and were considered in developing the 2024-2025 fiscal year budget: • The Village Council's decision to hold the millage rate at 6.4595. • Significant new construction, reconstruction, and home sales caused the gross taxable value of properties to increase 26.3%. Approximately 61% of residential housing has homestead exemption. • Interest rates were expected to be reduced significantly by the end of 2024-25 fiscal year affecting interest earnings as a result budgeted revenues were significantly decreased. • The Village Council approved a water rate increase of 3.5% to fund capital needs. • The Village Council approved a new Firefighters/Paramedics contract for three years. • Village Council approved increase of 21.6% in refuse and recycling rates to facilitate automated collections and lock in favorable rates for the next five years. • Village Council approved increase of 3.5%in stormwater rates. Requests for Information This financial report is designed to provide a general overview of the Village of Tequesta's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Village of Tequesta, Finance Department, 345 Tequesta Drive, Tequesta,Florida 33469. Page 76 of 426 17 Agenda Item #3. BASIC FINANCIAL STATEMENTS Page 77 of 426 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2024 Business- Governmental type Activities Activities Total Assets Cash $ 861,874 $ 774,538 $ 1,636,412 Investments 10,452,312 10,877,909 21,330,121 Receivables,net 1,744,251 990,515 2,734,766 Inventories 58,009 409,895 467,904 Prepaid items 719,658 134,307 853,965 Net pension asset 1,272,557 - 1,272,557 Capital assets not being depreciated 1,590,220 3,005,649 4,595,869 Capital assets being depreciated,net 18,198,867 16,525,530 34,724,397 Total Assets 34,897,748 32,718,243 67,615,991 Deferred Outflows of Resources Deferred outflows-pensions 3,875,001 472,209 4,347,210 Deferred outflows-OPEB 286,074 75,319 361,393 Deferred charge on refunding - 77,698 77,698 Total Deferred Outflows of Resources 4,161,075 625,226 4,786,301 Liabilities Accounts payable 304,043 806,564 1,110,607 Accrued liabilities 235,806 41,761 277,567 Accrued interest payable 66,610 - 66,610 Retainage payable 17,408 65,409 82,817 Customer deposits - 46,475 46,475 Unearned revenue 68,562 - 68,562 Due to other governments 6,683 304 6,987 Noncurrent liabilities: Due within one year 508,960 445,915 954,875 Due in more than one year 6,671,952 1,244,210 7,916,162 Total OPEB liability due in more than one year 711,295 187,276 898,571 Net pension liability due in more than one year 3,183,959 191,537 3,375,496 Total Liabilities 11,775,278 3,029,451 14,804,729 Deferred Inflows of Resources Deferred inflows-pensions 740,786 189,595 930,391 Deferred inflows-leases 1,177,391 - 1,177,391 Deferred inflows-OPEB 90,531 23,836 114,367 Total Deferred Inflows of Resources 2,008,708 213,431 2,222,139 Net Position Net investment in capital assets 13,516,727 17,495,935 31,012,662 Restricted: Pension Asset 1,272,557 - 1,272,557 Infrastructure 401,490 - 401,490 Debt Service 301,000 420,915 721,915 Building 728,931 - 728,931 Law Enforcement 257,579 - 257,579 Unrestricted 8,796,553 12,183,737 20,980,290 Total Net Position $ 25,274,837 $ 30,100,587 $ 55,375,424 The accompanying notes are an integral part of these fznaneial stateT9cge 78 Of 426 18 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Net(Expense)Revenue and Program Revenues Changes in Net Position Primary Government Operating Capital Grants Charges for Grants and and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Primary Government Governmental Activities General government $ 3,740,337 $ 1,273,767 $ 2,150 $ 102,486 $ (2,361,934) $ $ (2,361,934) Public safety 10,789,074 2,060,300 67,933 26,767 (8,634,074) (8,634,074) Transportation 1,815,814 - - - (1,815,814) (1,815,814) Leisure services 1,485,463 214,186 1,450 (1,269,827) (1,269,827) Interest on long-term debt 138,762 - - (138,762) (138,762) Total governmental activities 17,969,450 3,548,253 71,533 129,253 (14,220,411) - (14,220,411) Business-type Activities Water 5,518,894 9,610,166 2,456 289,512 3,383,240 3,383,240 Stormwater utility 605,901 562,337 - - (43,564) (43,564) Refuse and Recycling 617.328 594,153 - - (23,175) (23,175) Total business-type activities 6,742,123 9,766,656 2,456 289,512 3,316,501 3,316,501 Total primary government $ 24,711,573 $ 13,314,909 $ 73,989 $ 418,765 (14,220,411) 3,316,501 (10,903,910) General Revenues General revenues: Ad valorem taxes 11,703,838 - 11,703,838 Utility taxes 1,028,627 1,028,627 Communication service tax 314,511 314,511 Insurance premium taxes 362,969 362,969 Infrustructure surtax 615,413 615,413 Business taxes 97,742 97,742 Franchise fees based on gross receipts 592,096 592,096 Unrestricted intergovernmental revenues 1,079,260 1,079,260 Unrestricted investment earnings 811,938 602,373 1,414,311 Gain on sale of capital assets 61,597 21,731 83,328 Miscellaneous revenues 54,169 47,901 102,070 Total general revenues 16,722,160 672,005 17,394,165 Change in net position 2,501,749 3,988,506 6,490,255 Net Position-Beginning 22,773,088 26,112,081 48,885,169 Net Position-Ending $ 25,274,837 $ 30,100,587 $ 55,375,424 The accompanying notes are an integral part of these financial statements. Page 79 of 426 19 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA BALANCESHEET GOVERNMENTAL FUNDS SEPTEMBER 30,2024 Nonmajor Total General Governmental Governmental Fund Funds Funds Assets Cash $ 388,330 $ 473,544 $ 861,874 Investments 7,800,875 2,651,437 10,452,312 Receivables, net 1,602,692 141,559 1,744,251 Inventories 57,615 394 58,009 Prepaid items 703,458 16,200 719,658 Total Assets $ 10,552,970 $ 3,283,134 $ 13,836,104 Liabilities Accounts payable $ 278,194 $ 25,849 $ 304,043 Accrued liabilities 224,302 11,504 235,806 Retainage payable - 17,408 17,408 Unearned revenue 68,562 - 68,562 Due to other governments 1,466 5,217 6,683 Total Liabilities 572,524 59,978 632,502 Deferred Inflows of Resources Deferred inflows-leases 1,177,391 - 1,177,391 Total Deferred Inflows of Resources 1,177,391 - 1,177,391 Fund Balances Nonspendable: Inventories 57,615 394 58,009 Prepaid items 703,458 16,200 719,658 Restricted: Infrastructure - 401,490 401,490 Debt Service 301,000 - 301,000 Building - 728,931 728,931 Law Enforcement - 257,579 257,579 Committed to: Disaster Reserve 500,000 - 500,000 Capital Projects - 368,345 368,345 Assigned to: Capital Projects - 282,500 282,500 Subsequent years budget - 1,167,717 1,167,717 Unassigned: General Fund 7,240,982 - 7,240,982 Total Fund Balances 8,803,055 3,223,156 12,026,211 Total Liabilities and Fund Balances $ 10,552,970 $ 3,283,134 $ 13,836,104 The accompanying notes are an integral part of these financial statements. Page 80 of 426 20 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2024 Amounts reported for governmental activities in the statement of net position are different because: Total Fund Balances-Governmental Funds $ 12,026,211 Net pension asset is not considered to represent a financial asset in the governmental funds. 1,272,557 Net capital assets used in the governmental activities are not financial resources and,therefore are not reported in the governmental funds. 19,789,087 Deferred outflows of resources related to pensions and OPEB transactions are not reported in the governmental funds. 4,161,075 Deferred inflows of resources related to pensions and OPEB transactions are not recognized in the governmental funds. (831,317) Long-term liabilities, including notes payable,are not due and payable in the current period and,therefore, are not reported in the governmental funds: Loans payable (7,247,522) Total OPEB liability is not due and payable in the current period and,therefore, not reported in the governmental funds. (711,295) Net pension liability is not due and payable in the current period and,therefore, not reported in the governmental funds. (3,183,959) Net Position of Governmental Activities $ 25,274,837 The accompanying notes are an integral part of these financial statements. Page 81 of 426 21 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Nonmajor Total General Governmental Governmental Fund Funds Funds Revenues Ad valorem taxes $ 11,703,838 $ - $ 11,703,838 Other taxes 1,531,174 888,090 2,419,264 Charges for services 1,669,063 2,216 1,671,279 Intergovernmental 1,079,260 - 1,079,260 Tntragovernmental 902,991 - 902,991 Licenses and permits 8,390 681,333 689,723 Franchise fees 592,096 - 592,096 Rents and royalties 211,153 - 211,153 Miscellaneous 49,856 1,094 50,950 Fines and forfeitures 14,354 61,972 76,326 Grants,contributions and donations 200,786 - 200,786 Investment earnings 689,048 122,890 811,938 Total Revenues 18,652,009 1,757,595 20,409,604 Expenditures General government 3,532,433 - 3,532,433 Public safety 8,594,718 1,127,400 9,722,118 Transportation 1,564,417 21,841 1,586,258 Leisure services 1,219,536 - 1,219,536 Capital outlay 769,852 2,103,771 2,873,623 Debt service: Principal 416,356 - 416,356 Interest 141,967 - 141,967 Total Expenditures 16,239,279 3,253,012 19,492,291 Excess(Deficiency)of Revenues Over Expenditures 2,412,730 (1,495,417) 917,313 Other Financing Sources(Uses) Transfers in - 1,899,895 1,899,895 Transfers out (1,700,008) (199,887) (1,899,895) Sale of capital assets 61,597 - 61,597 Issuance of debt - 80,496 80,496 Total Other Financing Sources(Uses) (1,638,411) 1,780,504 142,093 Net change in fund balances 774,319 285,087 1,059,406 Fund Balances-Beginning 8,028,736 2,938,069 10,966,805 Fund Balances-Ending $ 8,803,055 $ 3,223,156 $ 12,026,211 The accompanying notes are an integral part of these financial statements. Page 82 of 426 22 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances-total governmental funds $ 1,059,406 Governmental funds report capital outlay as expenditures. However,in the statement of activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation/amortization in the current period. The details of the difference are as follows: Capital outlay 2,873,623 Capital asset class reclasified 12,266 Depreciation/amortization expense (1,155,777) 1,730,112 The issuance of long-term debt provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.Neither transaction,however,has any effect on net position. Proceeds from financed purchase (80,496) Payment on notes payable 294,000 Payment on financed purchases 122,356 335,860 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 3,205 Compensated absences (91,241) Total OPEB liability (62,286) Net pension related (473,307) (623,629) Change in net position of governmental activities $ 2,501,749 The accompanying notes are an integral part of these financial statements. Page 83 of 426 23 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30,2024 Business-type Activities Nonmajor Water Refuse& Fund Stormwater Recycling Total Assets Current Assets: Cash $ 681,887 $ 81,170 S 11,481 $ 774,538 Investments 10,778,369 26,718 72,722 10,877,809 Receivables,net 979,809 6,691 4,015 990,515 Inventories 409,770 125 - 409,895 Prepaid items 133,205 1,102 - 134,307 Total Current Assets 12,983,040 115,806 88,218 13,187,064 Non-current Assets: Capital assets not being depreciated 3,005,649 - - 3,005,649 Capital assets being depreciated,net 14,056,218 2,469,312 - 16,525,530 Total Non-Current Assets 17,061,867 2,469,312 - 19,531,179 Total Assets 30,044,907 2,585,118 88,218 32,718,243 Deferred Outflows of Resources Deferred outflows-pensions 433,928 38,281 - 472,209 Deferred outflows-OPEB 69,236 6,083 - 75,319 Deferred charge on refunding 77,698 - - 77,698 Total Deferred Outflows of Resources 580,862 44,364 - 625,226 Liabilities Current Liabilities: Accounts payable $ 672,217 $ 83,227 $ 51,120 $ 806,564 Accrued liabilities 39,528 2,233 - 41,761 Retainage payable 65,409 - - 65,409 Customer deposits 46,475 - - 46,475 Compensated absences 25,000 - - 25,000 Due to other governments 304 - - 304 Notes payable 420,915 - - 420,915 Total Current Liabilities 1,269,848 85,460 51,120 1,406,428 Noncurrent Liabilities: Compensated absences 114,974 4,143 - 119,117 Notes payable 1,125,093 - - 1,125,093 Net pension liability 170,805 20,732 - 191,537 Total OPEB liability 172,152 15,124 - 187,276 Total Noncurrent Liabilities 1,583,024 39,999 - 1,623,023 Total Liabilities 2,852,872 125,459 51,120 3,029,451 Deferred Inflows of Resources Deferred inflows-pensions 179,240 10,355 - 189,595 Deferred inflows-OPEB 21,911 1,925 - 23,836 Total Deferred Inflows of Resources 201,151 12,280 - 213,431 Net Position Net investment in capital assets 15,058,174 2,437,761 - 17,495,935 Restricted: Debt Service 420,915 - - 420,915 Unrestricted 12,092,657 53,982 37,098 12,183,737 Total Net Position $ 27,571,746 S 2,491,743 S 37,098 $ 30,100,587 The accompanying notes are an integral part of these financial statemt ji v,ue 84 Of 426 24 d Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Business-type Activities Nonmajor Water Refuse& Fund Stornwater Recycling Total Operating Revenues Charges for services: Metered water sale $ 8,610,166 $ - $ - $ 8,610,166 Stormwater fees - 562,337 - 562,337 Refuse and recycling fees - - 594,153 594,153 Total Operating Revenues 8,610,166 562,337 594,153 9,766,656 Operating Expenses Cost of sales and services: Plant production 1,904,647 - - 1,904,647 Distribution 1,190,131 - - 1,190,131 Stormwater - 372,051 - 372,051 Purchased services - - 617,328 617,328 Management services 694,954 70,645 - 765,599 Administration 944,189 - - 944,189 Depreciation/amortization 697,529 163,205 - 860,734 Total Operating Expenses 5,431,450 605,901 617,328 6,654,679 Operating Income(Loss) 3,178,716 (43,564) (23,175) 3,111,977 Non-Operating Revenues(Expenses) Investment earnings 576,703 12,970 12,700 602,373 Interest expense (87,444) - - (87,444) Gain on disposal of capital assets 21,731 - - 21,731 Miscellaneous revenue 38,103 9,798 - 47,901 Total Non-Operating Revenues 549,093 22,768 12,700 594,561 Income(loss)Before Transfers and Contributions 3,727,809 (20,796) (10,475) 3,696,538 Capital contributions 289,512 - - 289,512 Contributions-grants 2,456 - - 2,456 Change in Net Position 4,019,777 (20,796) (10,475) 3,988,506 Net Position-Beginning 23,551,969 2,512,539 47,573 26,112,081 Net Position-Ending $ 27,571,746 $ 2,491,743 $ 37,098 $ 30,100,587 The accompanying notes are an integral part of these financial statements. Page 85 of 426 25 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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 $ 8,498,236 $ 565,217 $ 593,123 $ 9,656,576 Cash paid to suppliers for goods and services (2,743,087) (432,577) (615,442) (3,791,106) Cash paid to employees for services and benefits (2,071,018) (134,288) - (2,205,306) Net Cash Provided by(Used in)Operating Activities 3,684,131 (1,648) (22,319) 3,660,164 Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets (1,901,027) (416,702) - (2,217,729) Cash received from sale of capital assets 21,731 - - 21,731 Capital contributions-grants 2,456 - - 2,456 Capital contributions-tap fees 289,512 - - 289,512 Principal payments on long-term debt (406,556) - - (406,556) Interest paid (66,225) - - (66,225) Net Cash Used in Capital and Related Financing Activities (1,960,109) (416,702) - (2,376,811) Cash Flows from Investing Activities Purchase of investments (6,681,809) (26,718) (72,722) (6,781,249) Interest and micsellaneous income 560,212 22,768 12,700 595,680 Net Cash Used in Investing Activities (6,121,597) (3,950) (60,022) (6,185,569) Net Change in Cash and Cash Equivalents (4,397,575) (422,300) (82,341) (4,902,216) Cash and Cash Equivalents-Beginning 5,079,462 503,470 93,822 5,676,754 Cash and Cash Equivalents-Ending $ 681,887 $ 81,170 $ 11,481 $ 774,538 Adjustments to Reconcile Operating Income(Loss)to Net Cash Provided by(Used in)Operating Activities Operating income(loss) $ 3,178,716 $ (43,564) $ (23,175) $ 3,111,977 Adjustments to reconcile operating income(loss)to net cash provided by(used in)operating activities: Depreciation/Amortization 697,529 163,205 - 860,734 Changes in operating assets,liabilities and deferred inflows/ outflows of resources: (Increase)decrease in: Accounts receivable (120,975) 21880 (1,030) (119,125) Inventories (156,120) 287 - (155,833) Prepaid items (83,472) (1,102) - (84,574) Increase(decrease)in: Accounts payable 401,612 (134,211) 1,886 269,287 Accrued liabilities 9,424 498 - 9,922 Retainage payable 65,409 - - 65,409 Customer deposits 9,045 - - 9,045 Long-term assets/liabilities (317,064) 10,359 - (306,705) Due to other governments 27 - - 27 Net Cash Provided by(Used in)Operating Activities $ 3,684,131 $ (1,648) $ (22,319) $ 3,660,164 Schedule of non-cash capital and related financing activities: Unrealized loss on investments $ (54,594) $ - $ - $ (54,594) The accompanying notes are an integral part of these financial statements. Page 86 of 426 26 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2024 Pension Trust Funds Assets Cash and cash equivalents $ 805,549 Investments Equities 25,837,292 Fixed Income 8,975,940 Real Estate Fund 2,418,502 Total investments 37,231,734 Contributions receivable 56,406 Accrued interest receivable 41,800 Total Assets 38,135,489 Liabilities Accounts payable 44,696 Total Liabilities 44,696 Net Position Restricted for Pension Benefits $ 38,090,793 The accompanying notes are an integral part of these statement. Page 87 of 426 27 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Pension Trust Funds Additions Contributions: State of Florida $ 362,969 Employer 957,843 Employee 450,604 Total Contributions 1,771,416 Investment Earnings Net appreciation in fair value of investments 5,654,089 Gain on sale of investments 275,717 Interest and dividends 713,020 6,642,826 Less investment expenses (117,155) Net Investment Earnings 6,525,671 Miscellaneous 10 Total Additions 8,297,097 Deductions Benefits paid 847,668 Refund of contributions 42,056 Administrative expenses 154,046 Total Deductions 1,043,770 Change in Net Position 7,253,327 Net Position Restricted for Pension Benefits Beginning of year 30,837,466 End of year $ 38,090,793 The accompanying notes are an integral part of these statement. Page 88 of 426 28 Agenda Item #3. NOTES TO BASIC FINANCIAL STATEMENTS Page 89 of 426 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Note 1—Summary of Significant Accounting Policies A. Description of Government-Wide Financial Statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all non-fiduciary activities of the primary government and any component units. All fiduciary funds are presented separately. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other non-exchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. B. Reporting Entity The Village of Tequesta, Florida (the Village) is a municipal corporation organized in 1957 pursuant to Special Act 57-1915, Laws of Florida. The Village has a Council-Manager form of government governed by a five (5) member Council elected at large. Each year, the Council appoints one of its members Mayor, to serve at the pleasure of Council for one year. The Village's major operations include public safety (police, fire rescue/EMS, building and code enforcement), transportation (streets and roads), leisure services (culture and recreation), water, stormwater, refuse&recycling services and general and administrative. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the Village, organizations for which the Village is financially accountable and other organizations for which the nature and significance of their relationship with the Village are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The Village is financially accountable for a component unit if it appoints a voting majority of the organization's governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the Village, or has operational responsibility. The Village has no component units to report. The financial statements of the Village have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. C. Basis of Presentation— Government-Wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. Both sets of statements distinguish between the governmental and business-type activities of the Village. The governmental activities column incorporates data from governmental funds while business-type activities incorporate data from the Village's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the Village's water and various other functions of the government. Elimination of these Page 90 of 426 29 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 charges would distort the direct costs and program revenues reported for the various functions concerned. The Statement of Net Position reports all financial and capital resources of the Village's governmental and business-type activities. Governmental activities are those supported by taxes and intergovernmental revenues. Business-type activities rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges for goods or services that are recovered directly from customers for services rendered and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. D. Basis of Presentation—Fund Financial Statements The fund financial statements provide information about the Village's funds, including its fiduciary funds. Separate statements for each fund category—governmental, proprietary and fiduciary— are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Fiduciary funds are presented apart from major and nonmajor funds. The Village reports the following major governmental fund: The General Fund is the Village's primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund. The Village reports the following major enterprise funds: The Water Fund, which accounts for the activities of the water utility, which includes the processing and distribution of potable water to Village residents and some surrounding communities, and the Stormwater Utility Fund, which accounts for the construction and maintenance of the Village's stormwater system. Additionally,the Village reports the following fund type: The pension trust funds account for the activities of the Public Safety Employees' (Police and Fire) and the General Employees' Pension Trust Funds, which accumulate resources for pension benefit payments to qualified employees. During the course of operations, the Village has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds (short-teen) and advances to/from other funds (long-term). While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly,balances between the funds included in the business-type activities (i.e.,the enterprise Page 91 of 426 30 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. Capital asset acquisitions, including entering into contracts giving the Village the right to use leased assets, are reported as expenditures in governmental funds. Issuance of long-term debt and financing through leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source(within 60 days of year-end). All other revenue items are considered to be measurable and available only when cash is received by the Village. Page 92 of 426 31 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 The proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting for reporting its assets and liabilities and deferred inflows and outflows of resources (as described previously). The pension trust funds are reported on the accrual basis of accounting using the economic resources measurement focus. Plan member and state contributions are recognized as revenues in the period that the contributions are due. Employer contributions to each Plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. All plan investments are reported at fair value, except for a money market fund which is reported at amortized cost; securities traded in the over-the-counter market and listed securities for which no sales were reported on that date are valued at the last reported bid price. Securities without an established fair value are reported at estimated fair value. Purchases and sales of securities are recorded on a trade-date basis. F. Budgetary Information 1. Budgetary Basis of Accounting Annual budgets are adopted on a basis consistent with generally accepted accounting principles. The appropriated budget is prepared by fund, function and department. Per established procedures approved by the Village Council, the designated budget officer may approve a department head's request to transfer appropriations between accounts, within a department. Although the Village Council requires all inter-department budget amendments to go before the Village Council, the budget was adopted on a fund basis and the legal level of budgetary control is therefore at the fund level. Any amendments that change the total fund's budget requires the Village Council to approve it in the same manner that the original budget was approved—by resolution. Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year's budget pursuant to state regulations. G.Assets,Liabilities,Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1. Cash The Village's cash is considered to be cash on hand and demand deposits. 2. Investments The Village has adopted an investment policy in accordance with Section 218.415,Florida Statutes that allows the Village to invest in relatively low risk securities, such as certificates of deposit, money market accounts, and U.S. Government Securities and Agencies. Investments are stated at fair value or amortized cost which approximates fair value. Page 93 of 426 32 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 3.Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories consist of expendable supplies and water distribution repair parts. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 4. Capital Assets Capital assets, which include property, plant, equipment, infrastructure and intangible assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets, except for infrastructure and intangible assets, are defined by the Village as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. For infrastructure and intangible assets the same estimated minimum useful life is used (in excess of one year), but only those projects that cost more than $25,000 are reported as capital assets. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the Village chose not to capitalize infrastructure acquired in fiscal years ending prior to September 30, 2004. As the Village constructs or acquires additional capital assets each period they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets are recorded at their acquisition value at the date of donation. Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the primary government are depreciated using the straight line method over the following estimated useful lives: Buildings 20—40 years Improvements 20—40 years Infrastructure 20—50 years Machinery and equipment 5— 15 years Intangibles 5—20 years Other 5— 15 years 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. Page 94 of 426 33 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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 deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and will not be recognized as an outflow of resources (expense/expenditure) until then. The Village has three items that qualify for reporting in this category. They are; 1) Deferred outflows related to pensions; 2) Deferred outflows related to OPEB; and 3) Deferred charge on refunding resulting from the difference in the carrying value of refunded debt and its reacquisition price, and is amortized over the shorter of the life of the refunded or refunding debt. These items are reported in the government-wide statement of net position and the statement of net position of the proprietary funds. In addition to liabilities,the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and will not be recognized as an inflow of resources (revenue) until that time. The Village has two items that qualify for reporting in this category- 1)Deferred inflows related to pensions and 2) Deferred inflows related to leases. This items reported in the balance sheet governmental funds and/or government-wide statement of net position and the statement of net position of the proprietary funds. 7. Net Position Flow Assumption Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources (e.g. restricted bond or grant proceeds). In order to calculate the amounts to report as restricted net position and unrestricted net position, in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village's policy to consider restricted net position to have been depleted before unrestricted net position is applied. 8. Fund Balance Flow Assumptions Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 9. Fund Balance Policies The Village classifies fund balance in accordance with GASB Statement No.54 Fund Balance Reporting and Governmental Fund Type Definitions. This statement enhances the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. In the fund Page 95 of 426 34 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 financial statements, governmental funds report classifications that comprise a hierarchy based primarily on the extent to which the Village is bound to honor constraint of the specific purposes for which amounts in those funds can be spent. The Village reports the following fund classifications: Nonspendable fund balance. Nonspendable fund balances are amounts that cannot be spent because they are either not in spendable form such as inventory or legally or contractually required to be maintained intact such as a perpetual trust. Restricted fund balance. Restricted fund balances are amounts that are constrained by the imposition externally by creditors, grantors, or laws or regulations of other governmental agencies or imposed by law through constitutional provisions or enabling legislation. Committed fund balance. Those amounts can only be used for specific purposes determined by a formal action of the government's highest level of decision-making authority. The Village Council is the highest level of decision-making authority for the Village that can, by adoption of an ordinance or resolution equally binding and of equal decision-malting authority,prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken (the adoption of another ordinance or resolution)to remove or revise the limitation. Assigned fund balance. Amounts in the assigned fund balance classification are intended to be used by the Village for specific purposes but do not meet the criteria to be classified as committed. The Village Council (Council) has, by adopting a fund balance policy, authorized the Village Manager and/or the Finance Director to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike cominitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Unassigned fund balance. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The General Fund is the only fund that reports a positive unassigned fund balance amount. The other governmental funds may report negative unassigned fund balance if that fund's expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes. H.Revenues and Expenditures/Expenses 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. Page 96 of 426 35 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 2. Property Taxes Property tax collections are governed by Chapter 197, Florida Statutes. Property taxes are based on assessed property value at January 1st as determined by the Palm Beach County Property Appraiser. The Village sets the property tax millage rate in September. The Palm Beach County Tax Collector bills and collects all property taxes levied within the County. Florida Statutes limit 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 2024 was 6.4595 mills. Tax bills are mailed out November 1st and discounts are available for payments made in the following months; November 4%, December 3%, January 2% and February 1%. Taxes become delinquent on April 1't. The owner of a tax certificate may at any time after taxes have been delinquent(April 1), for two years, file an application for a tax deed sale. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Tax Collector remits current taxes collected through four distributions to the Village in the first two months of the tax year and one distribution each month thereafter. The Village recognizes property tax revenue in the period in which they are levied. The Tax Collector pays the Village interest on monies held from day of collection to day of distribution. 3. Compensated Absences Vacation The Village's policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment upon separation from the Village's service up to the maximum allowable limit. The liability for such leave is reported as incurred in the government-wide and proprietary fund financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences includes salary-related benefits,where applicable. Sick Leave The Village's policy permits employees to accumulate unused sick leave up to a maximum amount approved by Council. Upon termination, this leave is eligible for payment at percentages determined by years of service. The liability for such leave is reported as incurred in the government-wide and proprietary fund financial statements when the liability has matured. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. 4. Proprietary Funds Operating and Non-Operating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water fund, refuse and recycling fund and stormwater fund are charges to customers for sales and services. The water fund also recognizes as operating revenue, the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Page 97 of 426 36 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 L Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and deferred outflows of resources and liabilities and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. J. Implementation of new GASB Pronouncements In June 2022, GASB issued Statement No. 101, Compensated Absences, which is effective for the Village beginning with its fiscal year ending September 30, 2025. The objective of this standard is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The object is achieved by aligning the recognition and measurement guidance under a unified model. In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures, which is effective for the Village beginning with its year ending year end September 30, 2026. The objective of this standard is to improve financial reporting by providing users of financial statements with essential information that is not currently provided. This includes information about risks related to a government's vulnerabilities due to certain concentration or constraints. The Village continues to review this standard to assess the impact on its financial reporting. In April 2024, the Governmental Accounting Standards Board (GASB) issued Statement No. 103, Financial Reporting Model Improvements, which is effective for the Village beginning with its fiscal year ending September 30, 2026. The objective of this standard is to enhance the effectiveness of the financial reporting model in providing information essential for decision-making and assessing governmental accountability. Key provisions include updates to management's discussion and analysis (MD&A), the presentation of unusual or infrequent items, the proprietary fund statement of revenues, expenses, and changes in fund net position, information about major component units in basic financial statements, and budgetary comparison information. The Village is currently reviewing this standard to assess its impact on financial reporting. In September 2024, the Governmental Accounting Standards Board(GASB) issued Statement No. 104, "Disclosure of Certain Capital Assets," which is effective for the Village beginning with its fiscal year ending September 30, 2026. The objective of this standard is to enhance financial reporting by providing users with essential information about specific types of capital assets. Key provisions include the separate disclosure of lease assets, intangible right-to-use assets recognized by operators in public-private and public-public partnerships, subscription-based information technology arrangements (SBITAs), and other intangible assets by major class. Additionally, the standard requires governments to evaluate and disclose capital assets held for sale, including historical cost, accumulated depreciation, and any related debt pledged as collateral. The Village is currently reviewing this standard to assess its impact on financial reporting. Page 98 of 426 37 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Note 2—Reconciliation of Government-Wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "capital assets used in governmental activities are not financial resources and, therefore are not reported in the funds." The amount of this reconciling element is $19,789,087 as explained in the following detail (additional details shown in Note 3.D.): Capital assets not being depreciated: Land $ 634,017 Construction in progress 956,203 Capital assets being depreciated: Buildings,net 10,135,584 Improvements other than buildings,net 851,094 Infrastructure, net 4,337,780 Machinery and equipment,net 2,872,941 Other K-9, net 1,468 Net Adjustment to Increase Fund Balance- Total Governmental Funds to Arrive at Net Position- Governmental Activities $ 19,789,087 Another element of that reconciliation explains that "long-term liabilities, including bonds/notes payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this $7,247,522 difference are as follows: Note payable $ 6,111,000 Financed purchases 141,898 Compensated absences 928,014 Accrued interest pyable 66,610 Net Adjustment to Increase Fund Balance- Total Governmental Funds to Arrive at Net Position—Governmental Activities $ 7,247,522 Page 99 of 426 38 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Note 3—Detailed Notes on All Activities and Funds A. Cash Deposits with Financial Institution Custodial credit risk-deposits. In the case of deposits, this is the risk that in the event of a bank failure,the government's deposits may not be returned to it. All of the Village's deposits are held in qualified public depositories (QPD) pursuant to State of Florida Statutes, Chapter 280, Florida Security,for Public Deposits Act. Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The pledging level may range from 25% to 200% of the average monthly balance of public deposits depending upon the depository's financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any potential losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. At September 30, 2024, none of the Village's primary bank balances or certificates of deposit were exposed to custodial credit risk. B. Investments The Village has adopted an investment policy in accordance with Florida Statutes and is authorized to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, certificates of deposit, the State Board of Administration Investment Pool, any intergovernmental investment pools authorized pursuant to Chapter 163 of the Florida Statutes, SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency, and securities of any interest in any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio is limited to obligations of U.S. government, its agencies and instrumentalities and to repurchase agreements fully collateralized by such U.S. government obligations and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian. The Florida local government investment pool balance 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 considered to be the same as the Village's account balance (amortized cost) in the pool. These pools are not insured by FDIC or any other governmental agency. Page 100 of 426 39 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 As of September 30, 2024, 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 $ 152,753 0.67% Money Market 1,483,659 6.46% Florida Class 7,009,802 AAAm 30.52% Florida Safe 4,335,620 AAAm 18.88% Total Deposits 12,981,834 Corporate Note 1,000,000 4.35% US Government Agencies 8,984,699 2.0 years AA 39.12% Total Investments 9,984,699 Total Deposits and Investments $ 22,966,533 100% Interest Rate Risk-interest rate risk exists when there is a possibility that changes in interest rates could adversely affect an investment's fair value. The Village's investment policy limits investments to the following: (1) current operating funds should have maturities of no longer than 24 months and (2) core funds shall have a final maturity of five and one-half(5.5) years or less from the date of purchase. The overall weighted average duration of principal return for the core funds shall be less than 3 years. Credit Risk- Credit risk exists when there is a possibility that the issuer or other counterparty to an investment transaction may be unable to fulfill its obligations. The Village's investment policy allows investments in U.S. Government-sponsored agencies and enterprises, commercial paper, the Florida PRIME investment pool, interlocal investment pools. The Village invests surplus funds in FLCLASS and FLSAFE Investment Pools. Both are rated by Standard & Poor's as AAAm, the highest rating for 2a7 investment pools. Although the corporate note does not carry a credit rating, the risk of loss is mitigated with a funding agreement with Pacific Life. Funding Agreements are obligations of corporations with assets exceeding $500,000,000 rated at the time of purchase in one of the 3 highest classifications established by at least 2 standard rating services rated. Additionally, the US Government Agencies are rated by Standards and Poor as investment grade AA. Concentration of Credit Risk — Maximum investment concentration ranges from 25% for other municipal bonds to 100% for US Treasuries. At September 30, 2024, the Village's investments were within the established policy levels for all investments to mitigate this risk. Custodial Credit Risk - The risk that, in the event of the failure of the counter party, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At this time, the Village is invested in US Government Agencies held by a third party custodian in the Village's name and the highest rating by S&P for both local government investment pools; FLCLASS and FLSAFE. Fair value of Investments - The Village follows the provision of GASB Codification, 150: Investments, which establishes a framework for measuring the fair value of investments in a fair Page 101 of 426 40 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy under GASBC 150 are described below: 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. As of September 30, 2024 the Village has the following recurring fair value investments: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs 9/30/24 (Level1) (Level2) (Level3) Fixed income U.S.Agencies $ 8,984,699 $ - $ 8,984,699 $ - Corporate Note 1,000,000 - - 1,000,000 Total fixed income 9,984,699 - 8,984,699 1,000,000 Total investments at fair value 9,984,699 $ - $ 8,984,699 $ 1,000,000 Investment at net asset value (NAV) FL Class 7,009,802 FL Safe 4,335,620 Investment at net asset value(NAV) 11,345,422 Total investments 21,330,121 Demand Deposits 1,636,412 Total cash equivalent and investments $ 22,966,533 Investments—Public Safety Pension Trust Fund Investment Policy Statement The Public Safety Pension Board of Trustees, as fiduciaries, adopts an Investment Policy Statement and directs that it applies to all assets under their control. It is the Board's intention to review the policy at least annually subsequent to the actuarial report and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. When the Investment Manager feels that the specific objectives defined in the statement cannot be met, or the guidelines constrict performance, the Investment Manager will present a formal modified investment policy statement to the Board of Trustees at a meeting for the Board's review. Once the Board has adopted, the new investment policy goes into effect 31 days after it has been filed with the State of Florida. The investments of the Public Safety Pension Trust Fund were in compliance with the investment policy. Fair Value Hierarchy The Plan categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation input used to measure the fair value of an asset: Page 102 of 426 41 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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, 2024 (or the most recent market close date if the markets are closed on September 30) in active markets. This includes common stock, equity mutual funds and bond mutual funds. Debt securities are valued using pricing inputs that reflect the assumptions market participants would use to price an asset or liability and are developed based on market data obtained from sources independent of the reporting equity(Level 2). It is valued using a matrix pricing technique. Matrix pricing values securities based on the securities relationship to benchmark quoted prices. This includes U.S. Treasury bonds and notes, U.S. agencies,mortgage backed securities, municipal bonds and corporate obligations, including asset backed securities. The Real Estate Fund - this fund enters into real estate partnerships with various joint venture partners. The portfolio is valued quarterly at net asset value (NAV). Investments valued at NAV are excluded from the fair value hierarchy because the valuation is not based on actual market inputs but rather is quantified using the fund's reported NAV. The fund had no outstanding commitments. As of September 30, 2024 the Public Safety Pension Trust Fund has the following recurring fair value investments: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs 9/30/24 (Level1) (Level 2) (Level3) Equities Mutual funds equities $ 18,598,178 $ 18,598,178 $ - Total equities 18,598,178 18,598,178 Fixed income Corporate bonds 485,518 $ 485,518 U.S. Government bonds 2,164,023 2,164,023 U.S.Agences 2,389,914 2,389,914 Bond mutual fund 1,303,629 1,303,629 Total fixed income 6,343,084 1,303,629 5,039,455 Total investments at fair value 24,941,262 $ 19,901,807 $ 5,039,455 $ - Redemption Redemption Investment at net asset value(NAV) Frequency Notice Period Real Estate Fund 1,750,637 Quarterly 30 days Total investments $ 26,691,899 Page 103 of 426 42 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 As of September 30, 2024, the Village of Tequesta's Public Safety Pension Trust Fund had the following demand deposits and investments: Weighted Credit Reported Average Rating Percent Percent of Value Maturity (Moody) Distribution Net Position Cash $ 1,283 -% -% Short-Teim Money Market Fund 556,023 2.04% 2.04% Total Cash and Cash Equivalents 557,306 Equities Mutual Funds 18,598,178 68.25% 68.15% Total Equities 18,598,178 Fixed Income Corporate Bonds: 5.96 years Bonds 228,799 Al 0.84% 0.84% Bonds 54,079 A2 0.20% 0.20% Bonds 88,135 A3 0.32% 0.32% Bonds 114,505 Aa2 0.42% 0.42% U.S. Government Bonds 2,164,023 7.94% 7.93% U.S.Agencies 2,389,914 11.30 years Aaa 8.77% 8.76% Bond Mutual Fund 1,303,629 4.78% 4.78% Total Fixed Income 6,343,084 Real Estate Fund 1,750,637 6.42% 6.42% Total investments 26,691,899 Total cash and investments $ 27,249,205 100.00% 99.86% 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, 2024, there were investments in mutual funds that included debt instruments in their portfolio. Credit Risk-the risk that a debt issuer will not fulfill its obligations. The investment policy limits credit risk by requiring that: • Fixed income investments must hold a rating in one of the four highest classifications by a major rating service. • Equities must be traded on a national exchange. • Money market investments must hold a minimum rating of Standard & Poor's Al or Moody's P1. • At September 30, 2024, the weighted average maturity in years for each investment type is included in the preceding table and ranges from 5.96 to 11.30 years. Page 104 of 426 43 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Concentration of Credit Risk - the risk of loss attributed to the magnitude of an investment in a single issuer. The investment policy limits exposure to this risk by: • Limiting investments in common stock, capital stock or convertible stock of any one issuing company or aggregate of any one issuing company to 5% of the outstanding capital stock of the company. • Limiting the value of corporate bonds issued by any single corporation to not more than 5% of the total fund. • Limiting investments in corporate common stock and convertible bonds (not to exceed 70% of the fund assets at fair value). Mortgage-backed securities issued by non-government entities are limited to 15% of the fixed income portfolio. • Limiting investments in foreign securities (not to exceed 25% of the value at cost of the fund). Custodial Credit Risk-the risk that,in the event of the failure of the counterparty, the plan will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Plan's investment policy limits exposure to this risk by: • Requiring all securities to be held with a third party custodian. • Requiring security transactions between a broker/dealer and the custodian involving the purchase or sale of securities by transfer of money or securities are made on a "delivery vs. payment"basis to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. Foreign Currency Risk - is the risk of an investment's value changing due to changes in currency exchange rates. Exposure to foreign currency risk is low as: • Foreign investments are through ADR's (shares listed in the U.S.), mutual funds (registered in the U.S.), or Yankee bonds (denominated in U.S. dollars should not to exceed 5% of total fund). • The investment policy permits a maximum of 25% of the fair value of the fund securities to be invested in foreign securities. • At September 30, 2024, 19.62% 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, 2024 and 2023,the overall annual money-weighted rate of return (long-term expected real rate of return) on the Public Safety Pension Plan investments (both Police Officers' and Firefighters') was 20.27% and 8.69% respectively. The money-weighted rate of return expresses investment performance, net of investment manager and consultant expenses adjusted for the changing amounts actually invested. The long-term expected rate of return on pension plan investments, shown below by asset class, is developed using best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation). These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Page 105 of 426 44 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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, 2024 and 2023 are as follows: Long-Term Expected Real Target Rate of Return Asset Class Allocation Range 2024 2023 Domestic Equity 50% 45%-55% 7.5% 7.5% International Equity 15% 10%-20% 8.5% 8.5% Total Equities 65% 60%-70% Domestic Core Fixed Income 20% 15%-25% 2.5% 2.5% Diversified Fixed Income 5% 0%-10% 3.5% 3.5% Total Fixed Income 25% 20%-30% Core Real Estate 10% 5%-15% 4.5% 4.5% Investments—General Employees' Pension Trust Fund Investment Policy Statement The General Employees' Pension Board of Trustees, as fiduciaries, adopts an Investment Policy Statement and directs that it applies to all assets under their control. It is the Board's intention to review the policy at least annually subsequent to the actuarial report and to amend this statement to reflect any changes in philosophy, objectives, or guidelines. When the Investment Manager feels that the specific objectives defined in the statement cannot be met, or the guidelines constrict performance, the Investment Manager will present a formal modified investment policy statement to the Board of Trustees at a meeting for the Board's review. Once the Board has adopted, the new investment policy goes into effect 31 days after it has been filed with the State of Florida. Investments of the General Employees' Pension Trust Fund were in compliance with the investment policy. Fair Value Hierarchy The Plan categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation input used to measure the fair value of an asset: Level 1 -investments reflect unadjusted quoted prices in active markets for identical assets; Level 2 - investments reflect prices that are based on inputs that are either directly or indirectly observable for an asset (including quoted prices for similar assets), which may include inputs in markets that are not considered to be active; Level 3 -investments reflect prices based upon unobservable inputs for an asset. The investment pricing transparency determines the category within the hierarchy and should not be observed as the investment risk. The custodian bank's (primary external pricing vendors) quoted prices were used to determine level classification based on the fair value hierarchy. Page 106 of 426 45 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Debt and equity securities classified as Level 1 of the fair value hierarchy are valued using quoted prices at September 30, 2024 (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. Debt securities are valued using pricing inputs that reflect the assumptions market participants would use to price an asset or liability and are developed based on market data obtained from sources independent of the reporting equity(Level 2). It is valued using a matrix pricing technique. Matrix pricing values securities based on the securities relationship to benchmark quoted prices. This includes U.S. Treasury bonds and notes, U.S. agencies, mortgage backed securities, municipal bonds and corporate obligations,including asset backed securities. The Real Estate Fund - this fund enters into real estate partnerships with various joint venture partners. The portfolio is valued quarterly at net asset value. Investments valued at NAV are excluded from the fair value hierarchy because the valuation is not based on actual market inputs but rather is quantified using the fund's reported NAV. The fund had no outstanding commitments. As of September 30, 2024 the General Employees' Pension Trust Fund has the following recurring fair value investments: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs 9/30/24 (Level1) (Level2) (Level3) Equities Common stocks $ 2,844,248 $ 2,844,248 $ - Mutual funds equities 4,394,866 4,394,866 Total equities 7,239,114 7,239,114 Fixed income Corporate bonds 669,703 $ 669,703 U.S. Government bonds 759,601 759,601 U.S.Agences 27,070 27,070 Bond mutual fund 443,056 443,056 Exchange traded funds 733,426 733,426 Total fixed income 2,632,856 1,176,482 1,456,374 Total investments at fair value 9,871,970 $ 8,415,596 $ 1,456,374 $ - Redemption Redemption Investment at net asset value(NAV) Frequency Notice Period Real Estate Fund 667,865 Quarterly 30 days Total investments $ 10,539,835 Page 107 of 426 46 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 At September 30, 2024, the Village of Tequesta's General Employees'Pension Trust Fund had the following demand deposits and investments: Weighted Credit Percent Reported Average Rating Percent of Net Value Maturity (Moody) Distribution Position Cash $ 643 0.01% 0.01% Short Term Money Market Fund 247,600 2.30% 2.29% Total Cash and Cash equivalents 248,243 Equities Common stocks 2,844,248 26.36% 26.33% Mutual funds 4,394,866 40.74% 40.68% Total Equities 7,239,114 Fixed Income Corporate Bonds: 1.00 year Bonds 149,113 Al 1.38% 1.38% Bonds 97,950 A2 0.91% 0.91% Bonds 152,789 A3 1.42% 1.41% Bonds 123,222 Baal 1.14% 1.14% Bonds 121,670 Baal 1.13% 1.13°% Bonds 24,959 Baa3 0.23% 0.23°% ETF-Exchange Traded Fund 733,426 6.80% 6.79% U.S. Government Bonds 759,601 7.04% 7.03% U.S.Agencies 27,070 1.66 years AAA 0.25% 0.25°% Mutual Fund 443,056 4.11% 4.10°% Total Fixed Income 2,632,856 Real Estate Fund 667,865 6.19% 6.18% Total Investments 10,539,835 Total Cash and Investments $ 10,788,078 100.00% 99.86% 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, 2024, the weighted average maturity in years for each investment type is included in the preceding table and ranges from 1.00 to 1.66 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: Page 108 of 426 47 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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. Concentration of Credit Risk-the risk of loss attributed to the magnitude of an investment in a single issuer. The Plan's investment policy limits exposure by: • Limiting investments in common stock or capital stock of any one issuing company or aggregate of any one issuing company to 5% of the outstanding capital stock of the company. • Limiting the value of bonds issued by any single corporation not to exceed 10% of the total fund. • Limiting investments in corporate common stock and convertible bonds not to exceed 70% of the fund assets at fair value. • Limiting investments in foreign securities not to exceed 25% of the fair value of the fund. Custodial Credit Risk— the risk that, in the event of the failure of the counteiparty, the plan will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Plan's investment policy limits exposure to this risk by: • Requiring all securities to be held by a third party custodian in the name of the Plan. As of September 30, 2024, the Plan's investment portfolio was held with a third-party custodian. • Requiring securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by the transfer of money or securities to be made on a"delivery vs. payment"basis to ensure that the custodian will have the security or money in hand at the conclusion of the transaction. Foreign Currency Risk - is the risk of an investment's value changing due to changes in currency exchange rates. Exposure to foreign currency risk is low as: • Foreign investments are through ADR's (shares listed in the U.S.), mutual funds (registered in the U.S.), or Yankee bonds (traded in U.S. dollars). • The investment policy permits a maximum of 25% of the fair value of the fund securities (including equities and fixed income securities)to be invested in foreign securities. • At September 30, 2024, 17.60% 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, 2024 and 2023, the overall annual money-weighted rate of return(long-term expected real rate of return) on the General Employees' Pension Plan investments was 20.91% and 8.58% 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 Page 109 of 426 48 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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. 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, 2024 and 2023 are as follows: Long-Term Expected Real Target Rate of Return Asset Class Allocation Range 2024 2023 Domestic Equity 50% 45%-55% 7.5% 7.5% International Equity 15% 10%-20% 8.5% 8.5% Total Equities 65% 60%-70% Domestic Core Fixed Income 20% 15%-25% 2.5% 2.5% Diversified Fixed Income 5% 0%-10% 3.5% 3.5% Total Fixed Income 25% 20%-30% Core Real Estate 10% 5%-15% 4.5% 4.5% C. Receivables Below is the detail of receivables for the general, water, and nonmajor governmental and enterprise funds including the applicable allowances for uncollectible accounts: Storm- Nonmajor General Water water Funds Total Leases $ 1,277,044 $ - $ - $ - $ 1,277,044 Accounts 18,430 919,384 - 39,129 976,943 Intergovernmental 120,490 302 6,691 106,445 233,928 Francise fees 55,106 - - - 55,106 Other taxes 67,088 - - - 67,088 Interest 64,534 63,002 - - 127,536 Gross receivables 1,602,692 982,688 6,691 145,574 2,737,645 Less: allowance for uncollectibles - (2,879) - - (2,879) Net Total Receivables $ 1,602,692 $ 979,809 $ 6,691 $ 145,574 $ 2,734,766 Page 110 of 426 49 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 D. Capital Assets Capital assets activity for the fiscal year ended September 30, 2024, 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 25,524 937,453 (6,774) 956,203 Total Capital Assets Not Being Depreciated/Amortized 659,541 937,453 (6,774) 1,590,220 Capital assets being depreciated/amortized: Buildings 14,693,652 58,895 14,752,547 improvements other than buildings 2,509,454 247,305 (65,411) 2,691,348 Infrastructure 5,444,760 600,808 6,045,568 Machinery and equipment 5,987,473 1,048,203 (648,457) 6,387,219 Other K-9 20,549 - 20,549 Total Capital Assets Being Depreciated/Amortized 28,655,888 1,955,211 (713,868) 29,897,231 Less accumulated depreciation/amortization for: Buildings (4,248,072) (368,891) - (4,616,963) improvements other than buildings (1,786,019) (119,646) 65,411 (1,840,254) Infrastructure (1,560,908) (146,880) - (1,707,788) Machinery and equipment (3,645,310) (517,425) 648,457 (3,514,278) OtherK-9 (16,146) (2,935) - (19,081) Total Accumulated Depreciation/Amortization (11,256,455) (1,155,777) 713,868 (11,698,364) Total Capital Assets Being Depreciated/Amortized,Net 17,399,433 799,434 - 18,198,867 Governmental Activities Capital Assets,Net $ 18,058,974 $ 1,736,887 $ (6,774) $ 19,789,087 Depreciation/amortization expense was charged to the functions/programs of the governmental activities of the Village as follows: Governmental Activities General government $ 141,023 Public safety 563,074 Transportation 200,473 Leisure services 251,207 Total Depreciation/Amortization Expense-Governmental Activities $ 1,155,777 Page 111 of 426 50 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Beginning Ending Balance Additions Deductions Balance Business-type Activities: Capital assets not being depreciated/amortized: Land $ 83,335 $ - $ - $ 83,335 Construction in progress 1,559,852 1,580,112 (217,650) 2,922,314 Total Capital Assets Not Being Depreciated/Amortized 1,643,187 1,580,112 (217,650) 3,005,649 Capital assets being depreciated/amortized: Buildings 972,980 - - 972,980 Improvements other than buildings 58,720 - - 58,720 Infrastructure 37,920,088 634,351 - 38,554,439 Machinery and equipment 2,094,975 220,916 (24,125) 2,291,766 Intangibles 48,649 - - 48,649 Total capital assets being depreciated/amortized 41,095,412 855,267 (24,125) 41,926,554 Less accumulated depreciation/amortization for: Buildings (779,146) (15,211) - (794,357) Improvements other than buildings (38,756) (2,349) - (41,105) Infrastructure (21,819,528) (729,995) - (22,549,523) Machinery and equipment (1,878,336) (113,179) 24,125 (1,967,390) Intangibles (48,649) - - (48,649) Total Accumulated Depreciation/Amortization (24,564,415) (860,734) 24,125 (25,401,024) Total Capital Assets Being Depreciated/Amortized,Net 16,530,997 (5,467) - 16,525,530 Business-type Activity Capital Assets,Net $ 18,174,184 $ 1,574,645 $ (217,650) $ 19,531,179 Depreciation/amortization expense charged to the water and stormwater funds of the business-type activities was $860,734. The depreciation/amortization expense breakdown by activity is as follows: Water utility $ 697,529 Stormwater 163,205 Total depreciation/amortization expence $ 860,734 Page 112 of 426 51 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 E. Accrued Liabilities Accrued liabilities reported by governmental funds at September 30, 2024,were as follows: Other Total General Governmental Governmental Fund Funds Funds Salary and employee benefits $ 209,716 $ 11,504 $ 221,220 Other 14,586 - 14,586 Total Accrued Liabilities $ 224,302 $ 11,504 $ 235,806 F. Pension Obligations Florida Retirement System (FRS/HIS) - a Statewide Local Government Employees' Retirement System (SLGERS) For the fiscal year ended September 30,2024 the Village did not have any active FRS/H1S participants and therefore no contributions were made to the FRS/HIS Pension Plan. The Village of Tequesta Single-Employer Defined Benefit Pension Plans Overview: The Village maintains two single-employer defined benefit pension plans, the Public Safety Officers' Pension Trust Fund and the General Employees' Pension Trust Fund. The sole administration of and responsibility for the proper operation of the retirement system is vested in The Board of Trustees. The defined benefit pension plans do not issue stand alone financial statements. All full-time general employees who are not classified as police officers or firefighters are eligible for membership in the General Employees' Pension Plan on the date of employment. The General Employees' Pension Board consists of five Trustees. Two are legal residents of the municipality, appointed by the Village Council, and two are full time General Employee members. The fifth Trustee is selected by a majority vote of the other Trustees. The Public Safety Board consists of five Trustees. Two are legal residents of the municipality, appointed by the Village Council, one is a full time police officer member, and one is full time firefighter member. The fifth Trustee is selected by a majority vote of the other Trustees. All full-time police officers and all full-time firefighters are eligible for membership in the Public Safety Officers' Pension Plan on the date of employment. The Public Safety Officers' Pension Trust Fund receives contributions that may not be used to pay benefits of all employee classes, therefore, two separate trust funds, the Firefighters' Pension Trust Fund (FPTF) and the Police Officers' Pension Trust Fund(FPTF) are reflected separately in the financial statements, as well as the General Employee's Trust Fund(GPTF). Page 113 of 426 52 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Membership in the Village of Tequesta's defined benefit pension plans as of the actuarial valuation date of October 1, 2023: FPTF PPTF GPTF Number of: Inactive members or beneficiaries currently receiving benefits 8 6 14 Inactive members entitled to but not yet receiving benefits 1 1 11 Active members 21 18 52 Total 30 25 77 Funding Policies are presented below under each of the plans. Actuarial Assumptions and Net Pension Liability(NPL) The actuarial valuation of the liabilities for the FPTF, PPTF and GPTF as of the September 30, 2023 measurement date were determined as of the beginning of the year, October 1, 2022 (based on actuarial valuation results as reported in the October 1, 2022 actuarial valuation). Using a measurement date of September 30, 2023 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, 2024. The total pension liability for the Village's defined benefit pension plans was determined using the following actuarial methods and assumptions, applied to all prior periods included in the measurement period. Actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported. If significant changes occur during the year, such as benefit changes or changes in assumptions or methods, these would be noted in the footnotes. FPTF PPTF GPTF Actuarial Valuation Date Oct. 1, 2022 Oct. 1, 2022 Oct. 1, 2022 Measurement Date of the net pension liability Sep. 30, 2023 Sep. 30, 2023 Sep. 30, 2023 Village's Fiscal Year Ended Date for Reporting Purposes Sep. 30, 2024 Sep. 30, 2024 Sep. 30, 2024 Page 114 of 426 53 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Pension Expense Fiscal Year Ended September 30, 2024 (Based on Measurement Period Ended September 30, 2023) FPTF PPTF GPTF Service Cost $ 459,269 $ 387,331 $ 539,870 Interest on the Total Pension Liability 1,162,950 415,171 578,739 Employee Contributions (made negative for additions here) (109,715) (92,612) (196,672) Projected Earnings on Plan Investments (made negative for additions here) (956,655) (469,285) (509,735) Administrative Expense 33,186 33,186 56,335 Other Changes in Plan Fiduciary Net Position (Use of State Contribution Reserve) - 113,845 - Other Changes in Total Pension Liability(Use of State Contribution Reserve) - (113,845) - Recognition of Outflow (Inflow) of Recourses due to Liabilities 78,772 (64,285) (30,275) Recognition of Outflow(Inflow) of Recourses due to Assets 341,120 171,758 161,588 Total Pension Expense $ 1,008,927 $ 381,264 $ 599,850 Page 115 of 426 54 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 The deferred outflow of resources, resulting from the Village's contributions to the Plans subsequent to the measurement date of September 30, 2023 are recognized as a reduction of the Village's net pension liability in the fiscal year ended September 30, 2024. The Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Fire: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 466,522 $ 39,113 Changes in assumptions 91,845 184,543 Net difference between projected and actual earnings on pension plan investments 1,132,573 - Contribution subsequent to measurement date 691,762 - Total $ 2,382,702 $ 223,656 Police: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ - $ 325,662 Changes in assumptions - 56,919 Net difference between projected and actual earnings on pension plan investments 576,527 - Contribution subsequent to measurement date 247,485 - Total $ 824,012 $ 382,581 General: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 111,909 $ 273,236 Changes in assumptions 47,897 50,908 Net difference between projected and actual earnings on pension plan investments 599,126 - Contribution subsequent to measurement date 381,564 - Total $ 1,140,496 $ 324,144 The deferred outflows of resources related to the Pension Plans contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2025. Page 116 of 426 55 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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 2025 359,593 67,661 64,715 2026 368,988 83,666 106,377 2027 690,762 247,902 318,620 2028 (33,921) (89,838) (49,017) 2029 49,981 (61,140) (5,907) Thereafter 31,881 (54,305) - Total $ 1,467,284 $ 193,946 $ 434,788 Net Pension Liability(Asset) Below is a suminary of components of the net pension liability (asset), by Plan, which was measured as of September 30, 2023 (measurement date in accordance with GASB Statement No. 68). Fire Police General Measurement Date September 30, 2023 2023 2023 Total Pension Liability $ 17,622,113 $ 6,076,800 $ 9,241,492 Plan Net Position 14,826,903 7,349,357 8,661,206 Net Pension Liability(Asset) $ 2,795,210 $ (1,272,557) $ 580,286 Plan Net Position as a % of Total Pension Liability 84.14% 120.94% 93.72% In accordance with GASB Statement No. 67, information as of September 30, 2024 has been disclosed: Fire Police General Measurement Date September 30, 2024 2024 2024 Total Pension Liability $ 19,097,281 $ 6,745,092 $ 10,249,576 Plan Net Position 18,249,247 9,038,866 10,802,680 Net Pension Liability(Asset) $ 848,034 $ (2,293,774) $ (553,104) Plan Net Position as a % of Total Pension Liability 95.56% 134.01% 105.40% Page 117 of 426 56 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Below is a detail of the net changes in pension liability(asset): FIREFIGHTERS' PENSION TRUST CHANGES IN NET PENSION LIABILITY Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Balances at September 30, 2022 $ 16,613,857 $ 13,745,648 $ 2,868,209 Changes for the year: Service cost 459,269 - 459,269 Interest 1,162,950 - 1,162,950 Changes of benefit terms - - - Differences between expected and actual experience 305,139 - 305,139 Changes in assumptions - - - Contributions -employer - 439,538 (439,538) Contributions -state - 244,737 (244,737) Contributions -employee - 109,715 (109,715) Net investment Income - 1,239,553 (1,239,553) Benefit payments, including refunds of employee contributions (919,102) (919,102) - Administrative expense - (33,186) 33,186 Net Changes 1,008,256 1,081,255 (72,999) Balances at September 30, 2023 $ 17,622,113 $ 14,826,903 $ 2,795,210 Page 118 of 426 57 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 POLICE OFFICERS' PENSION TRUST CHANGES IN NET PENSION ASSET Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Asset Balances at September 30, 2022 $ 5,630,173 $ 6,643,342 $ (1,013,169) Changes for the year: Service cost 387,331 - 387,331 Interest 415,171 - 415,171 Changes of benefit terms - - - Differences between expected and actual experience (69,051) - (69,051) Changes of assumptions - - - Contributions -employer - 126,138 (126,138) Contributions -employer(from state) - 222,712 (222,712) Contributions -employee - 92,612 (92,612) Net investment income - 584,563 (584,563) Benefit payments, including refunds of employee contributions (172,979) (172,979) - Administrative expense - (33,186) 33,186 Other (113,845) (113,845) - Net changes 446,627 706,015 (259,388) Balances at September 30, 2023 $ 6,076,800 $ 7,349,357 $ (1,272,557) Page 119 of 426 58 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 GENERAL EMPLOYEES' PENSION TRUST CHANGES IN NET PENSION LIABILITY Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Balances at September 30,2022 $ 8,500,338 $ 7,742,454 $ 757,884 Changes for the year: Service cost 539,870 - 539,870 Interest 578,739 - 578,739 Differences between expected and actual experience (104,387) - (104,387) Changes of Assumptions - - - Contributions -employer(from City) - 331,983 (331,983) Contributions -employee - 196,672 (196,672) Net investment income - 719,500 (719,500) Benefit payments, including refunds of employee contributions (273,068) (273,068) - Administrative expense - (56,335) 56,335 Net changes 741,154 918,752 (177,598) Balances at September 30, 2023 $ 9,241,492 $ 8,661,206 $ 580,286 Sensitivity of the Net Pension Liability(Asset) to Changes in the Discount Rate A single discount rate of 7.00% as of September 30, 2024, same as of September 30, 2023, 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, 2024 same as of September 30, 2023. This single discount rate was based on the expected rate of return on pension plan investments of 6.5% for both years. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the total actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments (7% for the Police Officers' and Firefighters' and 6.5% for the General Employees'Pension Trusts) was applied to all periods of projected benefit payments to determine the total pension liability. Regarding the sensitivity of the net pension liability to changes in the single discount rate, the tables below present the plan's net pension liability, calculated using a single discount rate of 7.00% (for the Police Officers' and Firefighters' Pension Trusts) and 6.50% (for the General Employees' Pension Trust) as well as what the plan's net pension liability would be if it were calculated using a single discount rate that is 1-percentage-point lower or 1-percentage-point higher (amounts in parenthesis represent a net pension asset). Page 120 of 426 59 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Current Single 1% Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30, 2023 6.00% 7.00% 8.00% Firefighters' $ 4,902,497 $ 2,795,210 $ 1,017,425 Police Officers' (452,872) (1,272,557) (1,950,542) Current Single Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30,2023 5.50% 6.50% 7.50% General Employees' $ 1,805,799 $ 580,286 $ (443,731) In accordance with GASB Statement No. 67,information as of September 30, 2024 has been disclosed: Current Single 1% Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30,2024 6.00% 7.00% 8.00% Firefighters' $ 3,044,604 $ 848,034 $ 1,005,966 Police Officers' (1,355,727) (2,293,774) (3,070,565) Current Single Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30,2024 5.50% 6.50% 7.50% General Employees' $ 786,149 $ (553,104) $ (1,674,151) Village of Tequesta Public Safety Employees'Pension Plan (PSEPP) Summary of Plan Provisions A. Ordinances The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida, Chapter 2, Article 1I1, Division 1, Section 2-61 (b), and was most recently amended under Ordinance No. 02-19 , passed and adopted on March 14, 2019. The Plan is also governed by certain provisions of Chapters 175 and 185, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code. B. Effective Date Not currently available Page 121 of 426 60 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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 Eligibility - A member may retire on the first day of the month coincident with or next following the earlier of: (1) age 55 and 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015), or (2) age 52 and 25 years of Credited Service. Benefit-For police officers hired before February 1, 2013 and firefighters hired before August 14, 2015 firefighters: Credited Service onlyprior to September 1, 2015): 3.0% of AFC multiplied by the first 6 years of Credited Service,plus 3.5% of AFC multiplied by the next 4 years of Credited Service,plus 4.0% of AFC multiplied by the next 5 years of Credited Service,plus 3.0% of AFC multiplied by the next 6 years of Credited Service,plus Page 122 of 426 61 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 2.0% of AFC multiplied by the next 4 years of Credited Service,plus 3.0% of AFC multiplied by all years of Credited Service over 25 years For firefighters hired before August 14, 2015, Credited Service on or after September 1, 2015: 3.0% of AFC multiplied by years of Credited Service For police officers hired on or after February 1, 2013 and firefighters hired on or after August 14, 2015: 2.75% of AFC multiplied by all years of Credited Service Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. J. Early Retirement Eligibility - A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 and 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015). Benefit - The Normal Retirement Benefit is reduced by 3.0% for each year by which the Early Retirement date precedes the Normal Retirement date. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. K. Delayed Retirement Same as Normal Retirement taking into account compensation earned and service credited until the date of actual retirement. L. Service Connected Disability Eligibility - Any member who becomes totally and permanently disabled and unable to render useful and efficient service to the Village as a result from an act occurring in the performance of service for the Village is immediately eligible for a disability benefit. Page 123 of 426 62 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Benefit - The accrued Normal Retirement Benefit taping into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 42% of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. M. Non-Service Connected Disability Eligibility - Any member who becomes totally and permanently disabled and unable to render useful and efficient service to the Village is immediately eligible for a disability benefit. Benefit - The accrued Normal Retirement Benefit taping into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 25% of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. N. Death in the Line of Duty Eligibility-Members are eligible for survivor benefits regardless of Credited Service. Benefit-The member's spouse or dependent child will receive the 50% of the member's AFC as of the date of death. Normal Form of Benef t-Payable for the life of the beneficiary. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. Page 124 of 426 63 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 O. Other Pre-Retirement Death Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015). Benefit - The beneficiary will receive the actuarial equivalent of the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. Normal Form of Benefit-Payable for the life of the beneficiary. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. The beneficiary of a plan member with less than 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015) at the time of death will receive a refund of the member's accumulated contributions. P. Post Retirement Death Benefit determined by the form of benefit elected upon retirement. Q. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are the Life Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options. R. Vested Termination Eligibility -A member has earned a non-forfeitable right to Plan benefits after the completion of 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015). Benefit - The benefit is the member's accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date. Alternatively, members can elect a reduced Early Retirement benefit any time after age 50. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None Page 125 of 426 64 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Supplemental Benefit- Once in pay status, all retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of$600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. Members terminating employment with less than 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015) will receive a refund of their own accumulated contributions. S. Refunds Eligibilitv - All members terminating employment with less than 6 years of Credited Service (10 years of Credited Service for firefighters on or after August 14, 2015) are eligible. Optionally, vested members (those with 6 or more years of Credited Service— 10 years of Credited Service for firefighters hired on or after August 14, 2015) may elect a refund in lieu of the vested benefits otherwise due. Benefit-Refund of the member's contributions. T. Member Contributions 5% of Compensation for police officers hired before February 1, 2013 and 6% of compensation for police officers hired on or after February 1, 2013. 5%t of compensation for firefighters through the fiscal year ending September 30, 2016; 5.5% of Compensation for firefighters beginning in the fiscal year ending September 30, 2017; thereafter, 6% of Compensation for firefighters. Employee contributions for firefighters would revert back to 5% of Compensation if the Village opts out of participation in Chapter 175. U. State Contributions Chapter 185 Premium Tax Revenue: The Village is permitted to use all annual Chapter 185 revenue as a credit toward the Required Employer Contribution and to apply half of the Chapter 185 reserve of $333,315 to reduce Required Employer Contribution. The remaining half of the Chapter 185 reserve of$333,315 is alocated to a Share Paln for police officers. Chapter 175 Premium Tax Revenue: The Village is permitted to use all annual Chapter 175 revenue as a credit toward the Required Employer Contribution and to apply the Chapter 175 reserve of $545,142 to reduce the Required Employer Contribution for the fiscal year ending September 30, 2016 through September 30,2018, as determined by Village. V. Employer Contributions Any additional amount determined by the actuary needed to fund the plan properly according to State laws. Page 126 of 426 65 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 W. Cost of Living Increases Not Applicable X. 13th Check Not Applicable Y. Deferred Retirement Option Plan Eligibility-Plan members who have met one of the following criteria are eligible for the DROP: (1) age 55 and 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015), or (2) age 52 and 25 years of Credited Service. Police officers must make a written election to participate in the DROP before the 27th year of employment. Firefighters must make a written election to participate in the DROP within two years of normal retirement eligibility. Benefit - The member's Credited Service and AFC are frozen upon entry into the DROP. The monthly retirement benefit as described under Normal Retirement is calculated based upon the frozen Credited Service and AFC. Firefighters have the optional sell back of vacation and sick leave when entering the DROP. Maximum DROP Period-Police officers: The earlier of 5 years of participation in the DROP or 30 years of employment. Firefighters: 5 years. Interest Credited - The member's DROP account is credited on September 30 of each year with investment earnings or losses at the same rate earned by the pension fund less any administrative expenses. The interest rate will not be less than 0%nor greater than 7.5%. Normal Form of Benefit-Lump Sum; other options are also available. COLA: None Z. Other Ancillary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed a Village of Tequesta Public Safety Officers' Pension Trust Fund liability if continued beyond the availability of funding by the current funding source. AA. Changes from Previous Valuation None The Firefighters' Pension Trust Fund (part of the PSEPP) does not issue separate stand-alone financial statements. Included below are the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30, 2024. Page 127 of 426 66 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 FIREFIGHTERS' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2024 Assets Cash and cash equivalents $ 372,337 Investments Equities 12,430,388 Fixed income 4,239,501 Real Estate Funds 1,170,066 Total investments 17,839,955 Contributions receivable 35,604 Accrued interest receivable 17,577 Total Assets 18,265,473 Liabilities Accounts payable 16,226 Total Liabilities 16,226 Net Position Restricted for Pension Benefits $ 18,249,247 Page 128 of 426 67 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 FIREFIGHTERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Additions Contributions: State of Florida $ 249,399 Employer 442,363 Employee 136,161 Total Contributions 827,923 Investment earnings Net appreciation in fair value of investment 2,651,308 Gain on sale of investments 148,222 Interest and dividends 337,501 Total investment earnings 3,137,031 Less investment expenses (38,839) Net investment earnings 3,098,192 Total Additions 3,926,115 Deductions Benefits paid 448,011 Refund of contributions 2,749 Administrative expenses 53,011 Total Deductions 503,771 Change in Net Position 3,422,344 Net Position Restricted for Pension Benefits Beginning of year 14,826,903 End of year $ 18,249,247 Page 129 of 426 68 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 The Police Officers' Pension Trust Fund (part of the PSEPP) does not issue separate stand-alone financial statements. Included below are the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30, 2024. POLICE OFFICERS' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2024 Assets Cash and cash equivalents $ 184,969 Investments Equities 6,167,790 Fixed income 2,103,583 Real Estate Funds 580,571 Total investments 8,851,944 Contributions receivable 6,722 Accrued interest receivable 8,727 Total Assets 9,052,362 Liabilities Accounts payable 13,496 Total Liabilities 13,496 Net Position Restricted for Pension Benefits $ 9,038,866 Page 130 of 426 69 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 POLICE OFFICERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Additions Contributions: State of Forida $ 113,570 Employer 133,915 Employee 96,406 Total Contributions 343,891 Investment earnings Net appreciation in fair value of investments 1,314,900 Gain on sale of investments 73,495 Interest and dividends 167,398 Total investment earnings 1,555,793 Less investment expenses (27,447) Net investment earnings 1,528,346 Total Additions 1,872,237 Deductions Benefits paid 126,812 Refund of contributions 10,405 Administrative expenses 45,511 Total Deductions 182,728 Change in Net Position 1,689,509 Net Position Restricted for Pension Benefits Beginning of year 7,349,357 End of year $ 9,038,866 Page 131 of 426 70 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 General Employees'Pension Plan A. Ordinances The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida, Chapter 2,Article 111, Division 1, Section 2-61 (a), and was most recently amended under Ordinance No. 12-19. The Plan is also governed by certain provisions of Part VII, Chapter 112,Florida Statutes and the Internal Revenue Code. B. Effective Date December 11, 2003 C. Plan Year October 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 of Tequesta. No service is credited for any periods of employment for which the member received a refund of their contributions. G.Compensation Base compensation including regular earnings, vacation pay, sick pay, plus all tax-deferred items of income,but excluding any lump sum payments, overtime,bonuses and longevity bonus. H.Average Final Compensation (AFC) The average of Compensation over the highest 5 years during the last 10 years of Credited Service; does not include lump sum payments of unused leave. Page 132 of 426 71 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 L Normal Retirement Eligibility,-A member may retire on the first day of the month coincident with or next following the earlier of: (1) age 62, or (2) 30 years of Credited Service regardless of age. Benefit - 2.0% of AFC multiplied by Credited Service with a maximum benefit equal to 100% of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None J. Early Retirement Eligibility, - A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 and 6 years of Credited Service. Benefit - The Normal Retirement Benefit is reduced by 5.0% for each year by which the Early Retirement date precedes the Normal Retirement date. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None K.Delayed Retirement Same as Normal Retirement taking into account compensation earned and service credited until the date of actual retirement. L. Service Connected Disability Eligibility-Any member who becomes totally and permanently disabled and unable to render useful and efficient service to the Village as a result from an act occurring in the perfonnance of service for the Village is immediately eligible for a disability benefit. Benefit -The accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 42% of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter. COLA: None Page 133 of 426 72 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 M. Non-Service Connected Disability Eligibility -Any member who has 6 years of Credited Service and becomes totally and permanently disabled and unable to render useful and efficient service to the Village is immediately eligible for a disability benefit. Benefit -The accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 25% of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter. COLA: None N. Death in the Line of Duty Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of Credited Service. Benefit- The beneficiary will receive the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. The benefit is payable at the member's Normal Retirement date. Normal Form of Benefit- 10 Years Certain COLA: None The beneficiary of a plan member with less than 6 years of Credited Service at the time of death will receive a refund of the member's accumulated contributions with interest. 0.Other Pre-Retirement Death Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of Credited Service. Benefit- The beneficiary will receive the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. The benefit is payable at the member's Normal Retirement date. Normal Form of Benefit- 10 Years Certain COLA: None The beneficiary of a plan member with less than 6 years of Credited Service at the time of death will receive a refund of the member's accumulated contributions with interest. P. Post Retirement Death Benefit determined by the form of benefit elected upon retirement. Page 134 of 426 73 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Q. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are the Life Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options. R.Vested Termination Eligibility - A member has earned a non-forfeitable right to Plan benefits after the completion of 6 years of Credited Service. Benefit - The benefit is the member's accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date. Alternatively, members can elect a reduced Early Retirement benefit any time after age 50. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None Members terminating employment with less than 6 years of Credited Service will receive a refund of their own accumulated contributions with interest. S. Refunds Eligibility - All members terminating employment with less than 6 years of Credited Service are eligible. Optionally, vested members (those with 6 or more years of Credited Service) may elect a refund in lieu of the vested benefits otherwise due. Benefit- Refund of the member's contributions with interest. Interest is currently credited at a rate of 3%. T. Member Contributions 5% of Compensation U. Employer Contributions Any additional amount determined by the actuary needed to fund the plan properly according to State laws. V. Cost of Living Increases Not Applicable W. 13th Check Not Applicable Page 135 of 426 74 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 X.Deferred Retirement Option Plan Not Applicable Y. Other Ancillary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed a Village of Tequesta General Employees' Pension Trust Fund liability if continued beyond the availability of funding by the current funding source. Z. Changes from Previous Valuation There have been no changes since the last valuation. The General Employees' Pension Trust Fund does not issue separate stand-alone financial statements. Included below are the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30, 2024. GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2024 Assets Cash and cash equivalents $ 248,243 Investments Equities 7,23 9,114 Fixed income 2,632,856 Real Estate Funds 667,865 Total investments 10,539,835 Contributions receivable 14,080 Accrued interest receivable 15,496 Total Assets 10,817,654 Liabilities Accounts payable 14,974 Total Liabilities 14,974 Net Position Restricted for Pension Benefits $ 10,802,680 Page 136 of 426 75 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Additions Contributions: Employer $ 381,565 Employee 218,037 Total Contributions 599,602 Investment earnings Net appreciaton in fair value of investments 1,687,881 Gain on sale of investments 54,000 Interest and dividends 208,121 Total investment earnings 1,950,002 Less investment expenses (50,869) Net investment earnings 1,899,133 Miscellaneous 10 Total Additions 2,498,745 Deductions Benefits paid 272,845 Refund of contributions 28,902 Administrative expenses 55,524 Total Deductions 357,271 Change in Net Position 2,141,474 Net Position Restricted for Pension Benefits Beginning of year 8,661,206 End of year $ 10,802,680 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 9/30/23 $ - $ 580,286 $ 1,140,496 $ 324,144 $ 599,850 Firefighters Pension Trust Fund 9/30/23 - 2,795,210 2,382,702 223,656 1,008,927 Police Pension Trust Fund 9/30/23 1,272,557 - 824,012 382,581 381,264 Total $ 1,272,557 $ 3,375,496 $ 4,347,210 $ 930,381 $ 1,990,041 Page 137 of 426 76 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Village of Tequesta Defined Contribution Plan The Village Single-Employer Defined Contribution Plan (the Plan) was established on February 1, 2013 with an effective date of March 1, 2013. The Plan is a 401(a) money purchase plan in the form of the Empower Retirement Governmental Money Purchase Plan and Trust (The Plan) with assets of the Plan held in trust for the exclusive benefit of the Plan participants and their beneficiaries. The assets shall be invested in the Plan and shall not be diverted to any other purpose. The employer's beneficial ownership of Plan assets held in the Empower Retirement Trust shall be held for the further exclusive benefit of the Plan participants. The Village Manager is the coordinator for the Plan and is authorized to execute all necessary agreements with the Empower Retirement Trust incidental to the administration of the Plan. The Village serves as Trustee under the Plan. In a defined contribution plan, benefits depend solely on the amounts contributed to the Plan plus investment earnings. The Plan covered the Police Chief and Assistant Police Chief. Employees must designate a mandatory participation contribution between the range of 1% to 12% for the Plan year as a condition of participation in the Plan. The participant shall not have the right to discontinue or vary the rate after becoming a Plan participant. Newly eligible employees have an election window of 30 days from the date of eligibility to make the election to participate in the mandatory contribution portion of the Plan which will begin the first of the month following the end of the election window. This election is irrevocable and remains in force until the employee terminates employment or ceases to be eligible to participate in the Plan. The Village contributes 10% of compensation. Employees are immediately vested in the Plan. Plan provisions are established and may be amended by the Village. The Village does not hold or administer resources of the Plan and consequently, the Plan does not meet the requirements for inclusion in the Village's financial statements. The Plan does not issue a stand-alone financial report. The fair value of the Plan assets at September 30, 2024 was $352,526. Employee contributions to the Plan for fiscal year ended September 30, 2024 were $14,095; the Village's contributions were $30,356. On November 11, 2024 the Village Council amended Chapter 2 of the Village Code of Ordinances section 2-61 Public Safety Officers' Trust Fund to permit the purchase of prior Village of Tequesta Police Officer Service. Both the Chief of Police and the Assistant Chief have been provided an opportunity to transfer into the defined benefit plan, and permitted to purchase their service into, and join the Tequesta Public Safety Officers'Pension Trust Fund. G. Other Postemployment Benefits (OPEB) Village of Tequesta's Other Postemployment Benefits Plan Plan description. The Village of Tequesta provides health insurance benefits to its retired employees through a single-employer plan administered by the Village. Pursuant to the provisions of Section 112.0801, Florida Statutes, former employees who retire from the Village and eligible dependents may continue to participate in the Village's fully-insured benefit plan for medical insurance coverage. The Village subsidizes the premium rates paid by retirees by allowing them to participate in the plan at reduced or blended group (implicitly subsidized) premium rates for both active and retired employees. Page 138 of 426 77 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the plan on average than those of active employees. The benefits provided under this defined benefit plan are provided until the retiree's attainment of age 65 (or until such time at which retiree discontinues coverage under the Village sponsored plans,if earlier). Funding Policy. The Village's Other Post-Employment Benefits are unfunded (pay-as-you-go basis). That is, the Village does not have a separate Trust Fund to make contributions to advance-fund the obligation. Current and future retirees are required to pay 100% of the blended premium to continue coverage under the Village's group health insurance program. Summary of Membership Information. The following table provides a summary of the number of participants in the plan at the measurement date of September 30, 2023: Inactive members or beneficiaries currently receiving benefits 6 Inactive members entitled to but not yet receiving benefits 0 Active members 95 Total 101 OPEB Liability,Expense,Deferred Outflows of Resources, and Deferred Inflows of Resources The Village recognizes the OPEB liability and the OPEB expense in the financial statements, along with the related deferred outflows and inflows of resources. The OPEB liability is the difference between the total OPEB liability and the plan's fiduciary net position. Since the plan is currently unfunded,the net OPEB liability is equal to and reported as total OPEB liability. The OPEB expense recognize each fiscal year is equal to the change in the total OPEB liability from the beginning of the year,not including the impact of the employer contributions, adjusted for deferred recognition of the liability. At September 30, 2024, the Village reported an OPEB liability of $898,571 that is based on an actuarial valuation performed as of September 30, 2023 and a measurment date of September 30, 2023. Page 139 of 426 78 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 For the fiscal year ended September 30, 2024, the Village recognized OPEB expense of$132,121. Total OPEB Liability-Beginning (September 30, 2022) $ 820,761 Service cost 59,465 Interest on the Total OPEB Liability 37,405 Difference between expected and actuarial experience of the Total OPEB Liability 44,273 Changes in assumptions and other inputs (3,117) Benefit payments (60,216) Net change in Total OPEB Liability 77,810 Total OPEB Liability-Ending (September 30,2023) $ 898,571 In addition, the Village reported an deferred outflows and deferred inflows of resources related to OPEB from the following sourses: Deferred Outflows of Deferred Inflows of Resources Resources Difference between expected and actual experience $ 38,939 $ - Changes in assumptions and other inputs 270,914 114,367 Benefit payments after the measurement date 51,540 - Total $ 361,393 $ 114,367 The deferred outflows of resources related to the contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the fiscal year ended September 30, 2025. 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 2025 $ 35,251 2026 35,251 2027 35,251 2028 35,251 2029 35,251 Thereafter 19,231 $ 195,486 Page 140 of 426 79 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Actuarial methods, assumptions and other inputs. The total OPEB liability was determined using actuarial assumptions outlined below. Valuation Date September 30, 2023 Measurement Date September 30, 2023 Actuarial Cost Method Entry age normal Inflation 2.50 % Discount Rate 4.63% 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, 2023 pension actuarial valuations of the General and Public Safety employees. Mortality Mortality rates are the same as used in the July 1,2023 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 16.00% for 2024, 6.00% Rates for 2025, and then gradually decreasing to an ultimate trend rate of 4.00%. 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, 2023: - The discount rate was changed from 4.40% to 4.63% as of September 30, 2023. - The expected claims costs and premiums were updated to reflect recent information provided for this valuation. -Healthcare cost trend assumption was updated to reflect new healthcare trend rates. 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. Page 141 of 426 80 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Discount Rate For plans that do not have formal assets, the discount rate should 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 4.63% (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 4.40% as of the beginning of the measurement year. Plan Assets There are no plan assets accumulated in the trust that meets the criteria in paragraph 4 of GASB Statement No. 75. Sensitivity of Total OPEB Liability Regarding the sensitivity of the total OPEB liability to changes in the discount rate, the following presents the plan's total OPEB liability, calculated using a discount rate of 4.63%, as well as what the plan's total OPEB liability would be if it were calculated using a discount rate that is one percent lower or one percent higher: Sensitivity of Total OPEB Liability to the Discount Rate Assumption Current Discount Rate 1% Decrease Assumption 1% Increase 3.63% 4.63% 5.63% Village's OPEB liability $ 967,422 $ 898,571 $ 835,641 Regarding the sensitivity of the total OPEB liability to changes in the healthcare cost trend rates, the following presents the plan's total OPEB liability, calculated using the assumed trend rates as well as what the plan's total OPEB liability would be if it were calculated using a trend rate that is one percent lower or one percent higher: 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 $ 817,894 $ 898,571 $ 992,222 Page 142 of 426 81 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 H. Construction and Other Commitments The Village has active construction projects as of September 30, 2024, including roads, sidewalks, recreationl area improvements, and various water projects. At year end, The Village had the following significant related to uncompleted contacts for construction and equipment: Description Remaining Commitment Governmental Activities Major funds General Fund $ - Total Major Funds - Non-Major Funds 1,167,717 Total Governmental Activities $ 1,167,717 Business-type Activities Major funds Water Utility(variety of projects) $ 1,601,432 Total Major Funds 1,601,432 Non-Major Funds - Total Business-type Activities $ 1,601,432 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, 2024. Inter-Local Agreement On December 20, 1994, the Village entered into an Inter-local agreement with Palm Beach County. Per the agreement, Palm Beach County provided for partial funding, land acquisition and design and construction of a branch library within Tequesta. Upon completion of the project, the library was leased to Palm Beach County for 50 years for an annual rent of one dollar. In the event the Village terminates the lease before the end of 50 years, the Village must reimburse Palm Beach County a depreciated value using a useful life of 25 years based on an initial value of $405,000 calculated on a straight-line basis. L Contracted Services—Refuse and Recycling Collection The Village's agreement with Waste Management, Inc. of Florida is for initial term for a period of eight years beginning October 1, 2017 and ending September 30, 2025 with optional renewal for one additional five year period. With this agreement the Village granted Waste Management the exclusive franchise for solid waste collection of residential, commercial, industrial and roll-off refuse, recycling and vegetative waste. The annual change in the collection component is determined using the Water, Sewer, and Trash Collection CPI published monthly by The Bureau of Labor Statistics during the most recent previous twelve consecutive months period beginning on April 1 and ending March 31. Page 143 of 426 82 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 J. Risk Management The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. While the Village cannot always anticipate the areas in which potential claims may arise, it purchases commercial insurance to protect against areas of possible exposure connected to municipal entities such as property, liability, automobile, workers' compensation, crime, storage tank, inland marine, statutory accidental death and dismemberment, firefighter cancer program coverage, and railroad coverage. Deductibles and limits vary by coverage and are secured based upon the Village's tolerance of risk retention in each area. At the Village Council's direction, the property deductible of$100,000 is applicable for all perils excluding hurricane/windstorm damage. The Florida Municipal Insurance Trust (FMIT) applies a named storm deductible of 5% of the 100% value of real and personal property, personal property of others in our care, custody and control values at the time of loss or damage at the locations where the damage occurred, subject to the policy deductible, whichever is greater. The Village continues to self-insure all property claims up to $100,000 via a policy deductible. The Village remains fully insured with the FMIT for workers' compensation coverage with statutory limits. Premiums are based upon risk class and remuneration of covered employees adjusted by an experience modification factor which includes three prior years of claims history. At the end of each fiscal year, the plan is audited and the Village can either receive a return of premium or be required to pay additional premium base upon actual versus estimated payroll. FMIT's final audit for fiscal year 2023/2024 resulted in a total refund to the Village of$10,926 due to payroll alterations that impacted the workers' compensation premium. 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. It is paid off at fiscal year ending 9/30/2024. Financed Purchase-Police Fleet The Village entered into an 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, 2024: Fiscal Year Ending September 30: Principal Interest Total 2025 $ 51,661 $ 4,590 $ 56,251 2026 25,840 1,975 27,815 Total $ 77,501 $ 6,565 $ 84,066 Page 144 of 426 83 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Financed Purchase-Police Tasers The Village entered into a 60 month capital lease with Axon Enterprise, Inc. in the amount of $80,496 on December 11, 2023 for the financing of twenty (20) tasers. Interest and principal payments are due annually. This is a five (5)year contract with five (5)payments. The following is the schedule of the of the future minimum payments at September 30, 2024: Fiscal Year Ending September 30: Principal Interest Total 2025 $ 16,099 $ - $ 16,099 2026 16,099 - 16,099 2027 16,099 - 16,099 2028 16,100 - 16,100 Total $ 64,397 $ - $ 64,397 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 5 to 16 years and have interest rates from 2.18% to 3.69%per year. The outstanding notes from direct borrowings and direct placements related to governmental activities of $6,111,000 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 $1,546,008 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, 2024 are as follows: Signed Original Interest Final Outstanding Promissory Notes Payable Date Borrowing Rate Maturity 9/30/2024 Government Activities Capital Improvements/Rec. Building 1/21/2021 $ 6,890,000 2.18% 10/01/2040 $ 6,111,000 Total Government Activities $ 6,111,000 Business-type Activities Public Improvement(Refunding) 7/14/2008 6,554,935 3.69% 3/l/2028 $ 1,546,008 Total Business-type Activities $ 1,546,008 Page 145 of 426 84 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 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, 2024 was $1,850,804,632. As of September 30, 2024 the Village did not exceed the debt limit of$185,080,463. Changes in Long-Term Liabilities Changes in the Village's long-term liabilities for the fiscal year ended September 30, 2024 are as follows: Governmental Activities Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities Note Payable-2021 $ 6,405,000 $ - $ 294,000 $ 6,111,000 $ 301,000 Financed purchases 183,758 80,496 122,356 141,898 67,760 Compensated absences 836,773 91,241 - 928,014 140,200 Total Governmental Activities $ 7,425,531 $ 171,737 $ 416,356 $ 7,180,912 $ 508,960 Business-type Activities Beginning Ending Due Within Balance Additions Deletions Balance One Year Business-type Activities Note Payable(2008) $ 1,952,564 $ - $ 406,556 $ 1,546,008 $ 420,915 Compensated absences 127,693 16,424 - 144,117 25,000 Total Business-type Activities $ 2,080,257 $ 16,424 $ 406,556 $ 1,690,125 $ 445,915 The debt service requirements for the Village's notes are as follows: Governmental Activities Fiscal Year Ending Promissory Notes September 30: Principal Interest Total 2025 $ 301,000 $ 129,939 $ 430,939 2026 307,000 123,312 430,312 2027 314,000 116,543 430,543 2028 321,000 109,621 430,621 2029 328,000 102,547 430,547 2030-2041 4,540,000 619,316 5,159,316 Total $ 6,111,000 $ 1,201,278 $ 7,312,278 Page 146 of 426 85 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Business-type Activities Fiscal Year Ending Promissory Notes September 30: Principal Interest Total 2025 $ 420,915 $ 49,309 $ 470,224 2026 437,238 33,273 470,511 2027 455,564 16,563 472,127 2028 232,291 1,819 234,110 Total $ 1,546,008 $ 100,964 $ 1,646,972 Total Primary Government Debt Fiscal Year Ending Total Primary Government Debt September 30: Principal Interest Total 2025 $ 721,915 $ 179,248 $ 901,163 2026 744,238 156,585 900,823 2027 769,564 133,106 902,670 2028 553,291 111,440 664,731 2029 328,000 102,547 430,547 2030-2041 4,540,000 619,316 5,159,316 Total $ 7,657,008 $ 1,302,242 $ 8,959,250 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 three months of general fund operating expenditures (25%). This amount is intended to provide fiscal stability when economic downturns and other unexpected events occur. If fund balance falls below the minimum target level because it has been used, essentially as a "revenue" source, as dictated by current circumstances, the policy provides for actions to replenish the amount to the minimum target level. Generally, replenishment is to occur within a three-year period. At September 30, 2024 the unassigned fund balance of the general fund was 42.17% and is above the minimum target level. It is a 6.13%increase compared to the prior fiscal year. N. Interfund Transfers The composition of interfund transfers for the fiscal year ended September 30, 2024 is as follows: Transfers In Capital Capital Improvement Fund Projects Fund Total Transfers Out (1) (1),(2) General Fund $ 15,000 $ 1,685,008 $ 1,700,008 Capital Improvement Fund - 199,887 199,887 Total Interfund Transfers $ 15,000 $ 1,884,895 $ 1,899,895 Page 147 of 426 86 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 (1) Transfer is to restrict portion of increased General Fund revenues to fund capital projects and improvements (2) Transfer of funds to fund specific capital projects. O. Joint Ventures The Village, in conjunction with six other municipalities, organized a consortium to provide mutual fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium (NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected contributions. The consortium does not issue separate financial statements. The Village has not been obligated to contribute any funds to the consortium since its inception in 1999. Page 148 of 426 87 Agenda Item #3. c� REQUIRED SUPPLEMENTARY INFORMATION Page 149 of 426 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Ad valorem taxes $ 11,524,090 $ 11,524,090 $ 11,703,838 $ 179,748 Other taxes 1,350,252 1,350,252 1,531,174 180,922 Charges for services 1,498,500 1,578,500 1,669,063 90,563 Intergovernmental 984,222 984,222 1,079,260 95,038 Tntragovermmental 902,991 902,991 902,991 - Licenses and permits 9,000 9,000 8,390 (610) Francbise fees 530,938 530,938 592,096 61,158 Rents and royalties 188,839 188,839 211,153 22,314 Miscellaneous 21,374 21,374 49,856 28,482 Fines and forfeitures 18,275 18,275 14,354 (3,921) Grants,contributions and donations 126,821 207,549 200,786 (6,763) Investment earnings 280,500 280,500 689,048 408,548 Total Revenues 17,435,802 17,596,530 18,652,009 1,055,479 Expenditures Council 74,640 76,140 75,977 163 Manager 362,368 392,318 387,714 4,604 Human resources 456,599 433,599 421,553 12,046 Clerk 447,453 435,453 400,072 35,381 Finance 783,536 763,886 784,561 (20,675) Legal 195,000 219,500 215,275 4,225 Comprehensive planning 495,338 408,808 308,838 99,970 General government 328,215 314,212 282,281 31,931 Information technology 535,503 656,431 656,162 269 Police 3,748,841 3,829,569 3,784,924 44,645 Code enforcement 109,261 99,261 58,574 40,687 Fire 4,764,250 4,770,562 4,751,220 19,342 Public works 1,626,076 1,682,545 1,564,417 118,128 Parks and recreation 1,201,176 1,286,152 1,219,536 66,616 Capital outlay 23,688 759,518 769,852 (10,334) Debt service: Principal 400,200 416,300 416,356 (56) Interest 142,050 142,050 141,967 83 Total Expenditures 15,694,194 16,686,304 16,239,279 447,025 Excess of Revenues Over Expenditures 1,741,608 910,226 2,412,730 1,502,504 Other Financing Sources(Uses) Transfers out (1,700,008) (1,700,008) (1,700,008) - Sale of capital assets 8,398 8,398 61,597 53,199 Total Other Financing Uses,Net (1,691,610) (1,691,610) (1,638,411) 53,199 Net Change in Fund Balance 49,998 (781,384) 774,319 1,555,703 Fund Balance-Beginning 8,028,736 8,028,736 8,028,736 - Fund Balance-Ending $ 8,078,734 $ 7,247,352 $ 8,803,055 $ 1,555,703 See note to budgetary comparison sc/4e&p 150 of 426 88 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA NOTE TO THE BUDGETARY COMPARISON SCHEDULE FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Note 1 —Budgets and Budgetary Accounting The Village is required to present a budget to actual comparison for the general fund and any major special revenue fund with a legally adopted annual budget. The Village may not include nonmajor special revenue funds, or funds of other fund types. This fiscal year, the Village presents this schedule for the general fund only. Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. For budgeting purposes, current year encumbrances are not treated as expenditures. All budgets are legally enacted through passage of a resolution. Although the Village Council requires all inter-department budget amendments to go before the Village Council for approval, the budget was adopted on a fund basis. The legal level of budgetary control is therefore at the fund level. What this means is that any amendment that changes the funds's total budget requires the Village Council to approve it in the same manner that the original budget was approved—by resolution. 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 made prior to the start of the fiscal year +Carryovers from the previous year (encumbrances) =Original budget The final budge includes all adjustments to the budget applicable to the fiscal year, even if they take place after the close of the fiscal year. During the year, total supplemental appropriations of $881,380 were adopted for the General Fund. Appropriations are legally controlled at the fund level and expenditures may not legally exceed budgeted appropriations at that level. Page 151 of 426 89 Agenda Item #3. In o o_ _m vn oo 10 o M m o N M �_ a o �_ 0 U1 O DD �/7 G1 �O �O 1� .--i N — O, O 7 v� co �n 7 l� O 01 �� M O 7 l� O f� N 4` N �n N l� 1� V Ol 00 x .--� GO l\ 'n N Vl 4` 7 l- .--i l� h It O V N m o OC 1D L- 00 17, N � c0 r. 69 � 69 6�3 Ef3 6 r Ff3 � N ' Vl W) 01 ' �O 7 V1 N O, N �O� V1 7 o O o O 7 In h 'r, h ,-. O a, 00 00 O 00 N N l� O 7 X O1 00 r- N N O M G1 Go M ct 0, C Q, m o op l� N M l� InN InN �n In �O N �t DD M 64 Fi9 69 A M 1n ' N N GCi N V1 I� -. 7 M h N 01 W Ol O O` 00 N N O M cn O IC Do O Vl CD In N O It M 00 M l- 000 '0 r 7 V1 M 00 00 r� V O O lO lJ VO Cc N to M .�, 01 l0 O1 O O` 't In .--�Gc .-. 00 \O oc v M �O 'V1 r Q1 h O O l- M l� Vr Vl N N 6F3 Fig A 6R 00 ,O 7 O ' op op [� O l� 'D o N o 7t lO N h O M .-� 4, N l� v1 N l� Ql 0o O Ol V v M N �n l- N M 00 v c N M 01 69 69 ~ W FA 69 ' Efi 64 M N O 01 M 7 O1 M I� 00 �D o v1 0 00 t Ol m 4v N l oo t` Ov al fA V'1 kn N n M m cl M m N m oo M N �o oo In ll- N V r � Ol Vl In V� ID, N .�-+ � r .-. W x r- O '� r�� M Q M C� N O r. 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N O, t 41 Cl M_ v M In m N r►� � O V � M O� � O �O �O � N •--i N U O l� 00 [� oo .— ...-� N 'D cl o u m 'It In In I� Cl N GTy V N O• CD ry 'n N l-- N O`10 o0 W N ri N lO 01 Oc n Q, p O N O, Vl r- N Ol 7 T M 01 7 N N 7 V O\ 'O 7 CA O 7 N O O A � O W y o CG U ° w d) � O F0.1 0.1 d O C R y y � � o o � � p 0 .� o o R o 0 0 � � % � •y ca � C R 0.r c7e. C 0. F'; O aRi u y y v a> v aCi aCi ^� A P > ^d . _ .�. R .a .a .a y .0 O y :a 0 o y y ai Y C ❑ a C w > p" c Z zn oln ,� U �1 a� Up1a� 0 d o o RUUUZ0.1R' ¢ O i R R m R o o � U � Page 152 of 426 Agenda Item #3. 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 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% 2023 538,716 684,275 (145,559) 1,828,585 37.42% 2024 657,958 691,762 (33,804) 2,069,050 33.43% *Excludes prepaid Employer contribution. Notes to Schedule Valuation Date 10/01/2022 Actuarially determined contribution rates are calculated as of October 1,which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determined Contribution rates: Actuarial cost method Entry age normal Amortization method Level dollar, closed Remaining amortization period 20 years Asset valuation method 5-year smoothed market Inflation 2.50% Salary increases 6.0%, including inflation Investment rate of return 7.00% Retirement age 100% upon reaching normal retirement age. Probability of early retirement is 5% or each year eligible. Mortality The same version of PUB-2010 Headcount-Weighted Mortality Tables as used by the Florida Retirement System (FRS) for Special Risk Class members in their July 1, 2021 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, 2022 Actuarial Valuation report, dated January 20, 2023. Page 153 of 426 91 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Annual money-weighted rate of return, net of investment expenses 20.27% 8.69% (15.03)% 20.27% 8.30% 2.93% 8.92% 10.58% 7.69% 0.38% Page 154 of 426 92 Agenda Item #3. m N v� oo N Ic c 00 o o o O o V o0 00 o a IO V O o 01 �D c�i 01 •� O ,� ul o 0 0 0 l M �D O h O Cl N vj v� V3 69 ss ,n N m oo O M cm O ' n 00 00 n o t� "t o N o Oc M �O O O M N M ^ V l0 I- V O1 N N \D \O M OM N M W GO ^ M N N N M M 69 A b4 69 69 b9 r- 00 GO cc h V1 M o o 00 M Cl oo N N 01 l-- OCD CO O Vl M 00 Vl O oo O N N N N M M 69 V3 b4 69 EA b9 A N C'A CIA N l� 00 N N V �O 00 O 00 00 00 Vl M o o_ l� .--i M N O V1 O V1 lD 00 ryj m � W � Q` N � O O O •--i M �O � oo N dl V M � _� W M O Ol V1 T U M V C\ Cl CA M 00 WW N N N M V N 6A 65 6R V3 61 59 F-1 n 00 M Vp M ' N Vl M N M Vl o o o N /4 N .� M l� oo �D oo l� �n M o m m M o Ac Io N N a, o o cm " V -, o t- o C� cr V1 M o O l� cn �O M W O N N t o0 00 7 10� 7.-. OO V ' �O 1 00 V V; O ' IC N M Ol 1-- � 00 Cl V 'n W O C Z o � o M o M � N rq N � a, N v N In IC, -• N N OV3 tfi V3 cfi sFi Vi U �D o0 ' O�D l� vO N 00 O, \.O c m O M IC, M O M 00 01 M y F-1 01� O C O cf O W � \O O l- 00 O O N M oo 7 F O O 01 l� V1 V O 'n f1-101 NN •--� •-� rr M ^ Vl Q1 Gl� G ICI W �•/ �n N l� O �n M M l� V� IrC�I O M l0 0o D1 l0 M � •--i l� �O l� N Ca Ol 7 .O oD N M ,--i p DD ►y I� N W 00 V1 O O 01 Q, �t .-� M CO O 'Jy r" N D 00 00.. Ca N U bl� Gl� G r .^i Vl V) l� M O N N M Inlp V) V1 N l� o N o I� M •--i O M lD o0 l� V1 CS M Mr O lL+ \O N N M 11 Mr M O\ Cy p M p W ^ 'nGO v � M N N c1 00 v �O � O\ Q U O Vl l0 M CA 'G l� ^� bQ V3 69 £f3 69 Yr 69 '� Oc r- r- (V 'A N O N V1 0l WI � l� 7 N C, O Ol •--i 01 O 7 l� .� N v oo � n �� cat w oo vO rA W O va va Va s9 ss Va p A p W i ❑ � � ti••l � c � W b�C U a i ML C a> L o a cn ❑ a e a�i Ms,OW 7:; Ow72 �' w •o 0 0 o o o G o R O z .o o .o aCi aCi a to w F z H F a z a a z a U Z Page 155 of 426 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF VILLAGE CONTRIBUTIONS POLICE OFFICERS' PENSION TRUST FUND Fiscal Year Actuarially Contribution Actual Ended Determined Actual Deficiency Covered Contribution as a% September 30, Contribution Contribution (Excess) Payroll of Covered Payroll 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% 2023 348,850 348,850 - 1,593,652 21.89% 2024 361,810 361,810 - 1,660,442 21.79% Notes to Schedule Valuation Date 10/01/2022 Actuarially determined contribution rates are calculated as of October 1,which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determined Contribution Rates: Actuarial cost method Entry age normal Amortization method Level dollar, closed Remaining amortization period 20 years Asset valuation method 5-year smoothed market Inflation 2.50% Salary increases 6.0%,including inflation Investment rate of return 7.00% Retirement age 100% upon reaching normal retirement age. Probability of early retirement is 5% or each year eligible. Mortality The same version of PUB-2010 Headcount-Weighted Mortality Tables as used by the Florida Retirement System (FRS) for Special Risk Class members in their July 1, 2021 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, 2022 Actuarial Valuation report, dated January 31, 2023. Page 156 of 426 94 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS POLICE OFFICERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Annual money-weighted rate of return, net of investment expenses 20.27% 8.69% (15.03)% 20.27% 8.30% 2.93% 8.92% 10.58% 7.69% 0.38% Page 157 of 426 95 Agenda Item #3. ' GD O, O 00 00 �D x �p Op M r O N o O o M V) D1 G, �D N 00 M N .My 41 Q` O V) O` Vl r O O M r Vl OC O1 7 — ✓CD r `J V N In Eas ss � s5 ss ss n 00 .� aa` x ��a o r o N o N a r oN � � � � o rn r y r o0 0 0 oo rx � lc m N c M a " N M M N 69 ' EH f3 69 EH 4H 00 1p 7 Oc h o O o W Vl `/� r N_ M �C N V) �--i C, V) a` r 'p N N r o0 i!1 01 41 M CD Op h N ti r N W r O C, N N M V N r V M N M r 0 O Oc N N w 69 4H 69 65 EH EH C, O1 N r M r N 't Gc N 00 M 't o O o O Vl O M M O N N M N M M O O n V) r r O A M CC V) M Vl \O N M W M lc - CO �p ll:� Ol a M m 00 00 0, o N .r. N.�7 r M o C, � 0 V M r 01 r M --i V r C� I r /1 W69 64 64 Efi EH b9 yi Z M O N r Ol N vl O 00 N x N v 0 N N v .0 m 0 �� o o M M Vl r N M --i N � �-11 H � Ef3 ' 69 H3 Efi bR bR /r+yl N N N `D 'n -" m vl N M Orl rl r c� oo r M x O� 00 M M M 7 r l� � N O0 l� o C, 0 0 W Z O O 00 M N O p r 7 1O O p o O o col �n r N N 0 n 0 O�O r CA00 N in 00 00 N O r r V o0 v� v) �p 00 C, 00 00 CO O U O ,--i V) 00 0o O O1 C, 00 01 'O V r � M O V N DD O r M r 7 T r p M IW V W � HA H H3 � Efi ff3 4H W W Z r ' r �O 7 7 O0 r V) r J O o O o N O, 00 M r N O, O 00 00 00 O c0 N r W C O: N .o C, o o a N r o, o W Vl Vl v OO O 69 ' ' b9 b9 � Efi H3 EH O C, r N �D t N M N CDN \O ut N 7 � c O c I� r M Op r C, V) M 01 00 r C) r 4\ M V) M O CO r M M lD M 1: 41 V) M M r 7 N N r zt r O\ oC 10 l0 O .-. g a l0 U( �J o0 N ^. O M M M r O M M O V M --i M M V) "- � GO 01 M W No r N M r 0, r O, o r M; N N c r N N o 0 0 0 Q, D` oD p1 O 7 �/l V) O o0 d` Vl W ,� 0,N O V) Ic y N rFj.��.-�� 69 Y3 Yd 6S 6R Y3 r C iG' CSC C � cC Q •� 'O C � CC 0. C3 R, _ p >C C C � a C. W c ❑ c w � U W W 4 W F � 0. L� Page 158 of 426 Agenda Item #3. 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 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% 2023 331,983 331,983 - 3,933,440 8.44% 2024 381,565 381,565 - 4,360,740 8.75% Notes to Schedule Valuation Date 10/01/2022 Actuarially determined contribution rates are calculated as of October 1,which is two years prior to the end of the fiscal year in which contributions are reported. Methods and Assumptions Used to Determined Contribution Rates: Actuarial cost method Aggregate method Amortization method N/A Remaining amortization period N/A Asset valuation method 5-year smoothed market Inflation 2.25% Salary increases 4.75%to 5.50%, including inflation, based on years of service. Investment rate of return 6.50% Retirement age 100% if eligible for normal retirement before age 62, else age based from 30% at age 62 to 100% at age 70; 5% for each year eligible for early retirement. Mortality The same version of PUB-2010 Headcount-Weighted Mortality Table as used by the Florida Retirement System (FRS) in their July 1, 2022 actuarial valuation (with mortality improvements projected 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 two most recently published FRS actuarial valuation reports. Other information: Notes See discussion of valuation results from the October 1, 2022 Actuarial Valuation report. Page 159 of 426 97 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' PENSION TRUST FUND Fiscal Year Ended September 30, 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Annual money-weighted rate of return, net of investment expenses 20.91% 8.58% (15.89)% 19.38% 8.83% 3.36% 7.28°% 12.52°% 3.97% (2.11)% Page 160 of 426 98 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOUS OTHER POST-EMPLOYMENT BENEFITS Measurement Date,September 30, 2023 2022 2021 2020 2019 2018 2017 Total OPEB Lability Service cost $ 59,465 $ 79,520 $ 63,270 $ 57,961 $ 50,439 $ 51,371 $ 53,040 Interest 37,405 21,209 12,060 12,064 25,960 22,929 19,739 Difference between expected and actual experience 44,273 - - - (309,165) - - Changes of assumptions and other inputs (3,117) (144,458) 411,041 6,038 12,964 (13,500) (14,020) Benefit payments (60,216) (49,910) (20,244) (19,040) (34,636) (39,712) (37,725) Net Change in Total OPEB Liability 77,810 (92,639) 466,127 57,023 (254,438) 21,088 21,034 Total OPEB Liability-Beginning 820,761 913,400 447,273 390,250 644,688 623,600 602,566 Total OPEB Liability-Ending $ 898,571 $ 820,761 $ 913,400 $ 447,273 $ 390,250 $ 644,688 $ 623,600 Covered-Employee Payroll $7,673,931 $6,773,694 $7,825,935 $ 7,597,995 $7,284,363 $6,694,984 $ 5,708,842 Total OPEB Liability as a percentage of Covered-Employee Payroll 11.71% 12.12% 11.67% 5.89% 5.36% 9.63% 10.92% Notes to Schedule Changes of benefit terms. There have been no significant changes (other than premium rate increases)in any health benefits 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 4.63%from 4.40%. Inflation is 2.50%. 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 2024 16.00% 2025 6.00% 2026 5.84% 2027 5.68% 2028 5.52% 2029 5.36% 2030 5.20% 2031 5.04% 2032 5.04% Ultimate health cost trend 4.00% Salary increases General Employees plan participants 4.75%-5.50%,including inflation;Public Safety-6.00%per year, including inflation. The Village of Tequesta implemented GASB Statement No.75 in fiscal year ending 9/30/2018 with a measurement date of 9/30/2017.This schedule is presented as required,however,until a full 10-year trend is compiled,the Village is only presenting information for those years for which information is available. Page 161 of 426 99 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM(FRS) SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Fiscal Year Ended June 30, 2024* 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 0.00000% 0.00025% 0.00041% 0.00135% 0.00165% 0.00158% 0.00166% 0.00189% 0.00227% 0.00223% Proportionate share of the net pension liability $ - $99,080 $ 152,863 $ 101,680 $717,034 $543,212 $501,303 $561,097 $572,594 $ 287,876 Covered payroll $ - $70,598 $ 105,084 $297,735 $222,110 $285,622 $369,696 $391,643 $492,907 $ 508,785 Proportionate share of the net pension liability as a percentage of its covered payroll -% 140.34% 145.47% 34.15% 322.83% 190.19% 135.60% 143.27% 116.17% 56.58% Plan fiduciary net position as a percentage of the total pension liability -% 82.38% 82.89% 96.40% 78.85% 82.61% 84.26% 83.89% 84.88% 92.00% The amounts presented for each fiscal year were determined as of 6/30. *At fiscal year end Village did not have any FRS participants and no pension liability related. Page 162 of 426 100 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY PROGRAM (HIS) SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Fiscal Year Ended June 30, 2024* 2023 2022 2021 2020 2019 2018 2017 2016 2015 Proportion of the net pension liability 0.00000% 0.00018% 0.00029% 0.00087% 0.00090% 0.00094% 0.00113% 0.00121% 0.00160% 0.00168% Proportionate share of the net pension liability $ - $28,300 $30,542 $ 107,220 $ 109,870 $ 104,854 $ 119,802 $ 129,440 $ 186,087 $ 171,031 Covered payroll $ - $70,598 $ 105,084 $297,735 $222,110 $285,622 $369,696 $391,643 $492,907 $ 508,795 Proportionate share of the net pension liability as a percentage of its covered payroll -% 40.09% 29.06% 36.01% 49.47% 36.71% 32.41% 33.05% 37.75% 33.62% Plan fiduciary net position as a percentage of the total pension liability -% 4.12% 4.81% 3.56% 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% The amounts presented for each fiscal year were determined as of 6/30. *At fiscal year end Village did not have any HIS participants and no pension liability related. Page 163 of 426 101 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM (FRS) SCHEDULE OF VILLAGE CONTRIBUTIONS Fiscal Year Ended September 30, 2024* 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution $ - $ 8,422 $ 13,669 $ 44,150 $ 58,313 $ 52,059 $ 48,540 $ 47,988 $ 62,966 $ 43,642 Contributions in relation to the conractually required contribution - (8,422) (13,668) (44,150) (58,313) (52,059) (48,540) (47,988) (62,966) (43,642) Contribution deficiency(excess) $ - $ - $ - $ - S - $ - $ - $ - $ - $ - Covered payroll $ - $ 49,714 S 81,619 S 277,220 S 233,482 S 261,899 S 362,908 $382,869 $451,085 $484,772 Contributions as a percentage of covered payroll % 16.94% 16.75% 15.93% 24.98% 19.88% 13.38% 12.53% 13.96% 9.00% The information in this schedule determined as of the Village's most recent fiscal year. *At fiscal year end Village did not have any FRS participants and no pension liability related. Page 164 of 426 102 Agenda Item #3. VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY PROGRAM(HIS) SCHEDULE OF VILLAGE CONTRIBUTIONS Fiscal Year Ended September 30, 2024* 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution $ - $ 825 $ 1,355 $ 4,602 $ 3,876 $ 4,348 $ 6,024 $ 6,356 $ 7,488 $ 5,381 Contributions in relation to the conractually required contribution - (825) (1,355) (4,602) (3,876) (4,348) (6,024) (6,356) (7,488) (5,381) Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ - $ 49,714 $ 81,619 $277,220 $233,482 $261,899 $362,908 $382,869 $451,085 $484,772 Contributions as a percentage of covered payroll % 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.11% The information in this schedule determined as of the Village's most recent fiscal year. *At fiscal year end Village did not have any HIS participants and no pension liability related. Page 165 of 426 103 Agenda Item #3. n -s i COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Page 166 of 426 Agenda Item #3. NONMAJOR GOVERNMENTAL FUNDS Page 167 of 426 Agenda Item #3. NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenue sources that are restricted to expenditures for particular purposes. Building Fund - This fund accounts for permit fees required on all public or private buildings, structures, and facilities. The revenue obtained shall be used solely for carrying out responsibilities in enforcing Florida Building Code. Special Law Enforcement Trust Fund — This fund accounts for forfeitures received by the Police Department. Forfeitures obtained locally are expended as prescribed by Florida Statute Chapter 932.704. Forfeitures obtained through federal programs are expended according to the Department of Justice Asset Forfeiture Program. Capital Projects Funds Capital Projects Funds are used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays including the acquisition or construction of capital facilities and other capital assets. The use of the capital projects fund type is permitted rather than mandated for financial reporting purposes. Capital projects funds can be a valuable management tool for multi-year projects. Capital Improvement Fund — This fund is used to account for the maintenance and upkeep of the Village's general infrastructure (such as roads, bridges, sidewalks and storm water drainage systems) and streetscape beautification projects. Capital Project Fund— This fund accounts for the acquisition or construction of major capital projects, other than those financed by proprietary fund types. Page 168 of 426 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA COMBINING BALANCE SHEET NONAIAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2024 Special Revenue Capital Projects Total Special Law Capital Capital Nonmajor Building Enforcement Improvement Projects Governmental Fund Fund Fund Fund Funds Assets Cash $ 81,660 $ 30,393 $ 132,653 $ 228,838 $ 473,544 Investments 668,218 229,961 557,580 1,195,678 2,651,437 Receivables,net 49 218 141,292 - 141,559 Inventories 394 - - - 394 Prepaid items 16,200 - - - 16,200 Total Assets $ 766,521 $ 260,572 $ 831,525 $ 1,424,516 $ 3,283,134 Liabilities and Fund Balances Liabilities Accounts payable 5,123 2,145 - 18,581 25,849 Accrued liabilities 10,656 848 - - 11,504 Retainage payable - - - 17,408 17,408 Due to other governments 5,217 - - - 5,217 Total Liabilities 20,996 2,993 - 35,989 59,978 Fund Balances Nonspendable: Inventories 394 - - - 394 Prepaid Items 16,200 - - - 16,200 Restricted for: Infrastructure - - 401,490 - 401,490 Building 728,931 - - - 728,931 Law Enforcement - 257,579 - - 257,579 Capital Projects - - 368,345 - 368,345 Assigned to: Capital Projects - - 61,690 220,810 282,500 Subsequent years budget - - - 1,167,717 1,167,717 Total Fund Balances 745,525 257,579 831,525 1,388,527 3,223,156 Total Liabilities and Fund Balances $ 766,521 $ 260,572 $ 831,525 $ 1,424,516 $ 3,283,134 Page 169 of 426 104 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Special Revenue Capital Projects Total Special Law Capital Capital Nonmajor Building Enforcement Improvement Projects Governmental Fund Fund Fund Fund Funds Revenues Other taxes $ - $ - $ 888,090 $ - $ 888,090 Charges for services 2,216 - - - 2,216 Licenses and permits 681,333 - - - 681,333 Miscellaneous 1,094 - - - 1,094 Fines and forfeitures - 61,972 - - 61,972 Investment earnings 44,250 13,817 53,636 11,187 122,890 Total Revenues 728,893 75,789 941,726 11,187 1,757,595 Expenditures Public safety 1,001,704 125,696 - - 1,127,400 Transportation - - 21,841 - 21,841 Capital outlay 45,308 7,911 1,280,642 769,910 2,103,771 Total Expenditures 1,047,012 133,607 1,302,483 769,910 3,253,012 Excess(Deficiency)of Revenues Over(Under)Expenditures (318,119) (57,818) (360,757) (758,723) (1,495,417) Other Financing Sources(Uses) Transfers in - - 15,000 1,884,895 1,899,895 Transfers out - - (199,887) - (199,887) Issuance of debt - - 80,496 - 80,496 Total Other Financing Sources,Net - - (104,391) 1,884,895 1,780,504 Net Change in Fund Balances (318,119) (57,818) (465,148) 1,126,172 285,087 Fund Balances-Beginning of Year 1,063,644 315,397 1,296,673 262,355 2,938,069 Fund Balances-End of Year $ 745,525 $ 257,579 $ 831,525 $ 1,388,527 $ 3,223,156 Page 170 of 426 105 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SCHEDULE BUILDING FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Charges for services $ - $ - $ 2,216 $ 2,216 Licenses and permits 608,708 608,708 681,333 72,625 Miscellaneous - - 1,094 1,094 Investment earnings 15,000 15,000 44,250 29,250 Total Revenues 623,708 623,708 728,893 105,185 Expenditures Public safety 952,970 970,167 1,001,704 (31,537) Capital outlay 235,000 267,000 45,308 221,692 Total Expenditures 1,187,970 1,237,167 1,047,012 190,155 Net Change in Fund Balance (564,262) (613,459) (318,119) 295,340 Fund Balance-Beginning 1,063,644 1,063,644 1,063,644 - Fund Balance-Ending S 499,382 $ 450,185 S 745,525 S 295,340 Page 171 of 426 106 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SCHEDULE SPECIAL LAW ENFORCEMENT TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Fines and forfeitures $ 25,000 $ 25,000 $ 61,972 $ 36,972 Investment earnings 1,500 1,500 13,817 12,317 Total Revenues 26,500 26,500 75,789 49,289 Expenditures Public safety 164,661 177,695 125,696 51,999 Capital outlay - - 7,911 (7,911) Total Expenditures 164,661 177,695 133,607 44,088 Net Change in Fund Balance (138,161) (151,195) (57,818) 93,377 Fund Balance-Beginning 315,397 315,397 315,397 - Fund Balance-Ending $ 177,236 $ 164,202 $ 257,579 $ 93,377 Page 172 of 426 107 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Other taxes $ 757,055 $ 757,055 $ 888,090 $ 131,035 Investment earnings - - 53,636 53,636 Total Revenues 757,055 757,055 941,726 184,671 Expenditures Transportation 44,000 639,782 21,841 617,941 Capital outlay 1,010,077 1,031,391 1,280,642 (249,251) Total Expenditures 1,054,077 1,671,173 1,302,483 368,690 (Deficiency)of Revenues Under Expenditures (297,022) (914,118) (360,757) 553,361 Other Financing Sources(Uses) Transfers in 15,000 15,000 15,000 - Transfers out (199,887) (199,887) (199,887) - Issuance of debt - - 80,496 80,496 Total Other Financing Sources(Uses) (184,887) (184,887) (104,391) 80,496 Net Change in Fund Balance (481,909) (1,099,005) (465,148) 633,857 Fund Balance-Beginning 1,296,673 1,296,673 1,296,673 - Fund Balance-Ending $ 814,764 $ 197,668 S 831,525 S 633,857 Page 173 of 426 108 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Grants,contributions and donations $ 200,000 $ 200,000 $ - $ (200,000) Investment earnings - - 11,187 11,187 Total Revenues 200,000 200,000 11,187 (188,813) Expenditures Transportation 710,000 710,000 - 710,000 Capital outlay 1,250,000 1,250,000 769,910 480,090 Total Expenditures 1,960,000 1,960,000 769,910 1,190,090 (Deficiency)of Revenues Under Expenditures (1,760,000) (1,760,000) (758,723) 1,001,277 Other Financing Sources(Uses) Transfers in 1,884,895 1,884,895 1,884,895 - Total Other Financing Sources(Uses) 1,884,895 1,884,895 1,884,895 - Net Change in Fund Balance 124,895 124,895 1,126,172 1,001,277 Fund Balance-Beginning 262,355 262,355 262,355 - Fund Balance-Ending $ 387,250 $ 387,250 $ 1,388,527 $ 1,001,277 Page 174 of 426 109 Agenda Item #3. FIDUCIARY FUNDS Page 175 of 426 Agenda Item #3. FIDUCIARY FUNDS Fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government's own programs. Pension trust funds are fiduciary funds that are used to report resources required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post-employment benefit plans, or other employee benefit plans. The Village accounts for two defined benefit plans (Public Safety reports separate trust funds for Police Officers and Firefighters) and a separate fund is reported for each individual trust fund. The three trust funds are as follows: Firefighters' Pension Trust Fund — This fund accounts for the accumulation of resources and for contributions and benefits of the firefighter employees. Police Officers' Pension Trust Fund — This fund accounts for the accumulation of resources and for contributions and benefits of the police employees. General Employees' Pension Trust Fund — This fund accounts for the accumulation of resources and for contributions and benefits for the general employees of the Village. Page 176 of 426 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2024 Police General Firefighters' Officers' Employees' Pension Pension Pension Trust Fund Trust Fund Trust Fund Total Assets Cash and cash equivalents $ 372,337 $ 184,969 $ 248,243 $ 805,549 Investments Equities 12,430,388 6,167,790 7,239,114 25,837,292 Fixed Income 4,239,501 2,103,583 2,632,856 8,975,940 Real Estate Fund 1,170,066 580,571 667,865 2,418,502 Total investments 17,839,955 8,851,944 10,539,835 37,231,734 Contributions receivable 35,604 6,722 14,080 56,406 Accrued interest receivable 17,577 8,727 15,496 41,800 Total Assets 18,265,473 9,052,362 10,817,654 38,135,489 Liabilities Accounts payable 16,226 13,496 14,974 44,696 Total Liabilities 16,226 13,496 14,974 44,696 Net Position Restricted for Pension Benefits $ 18,249,247 $ 9,038,866 $ 10,802,680 $ 38,090,793 Page 177 of 426 110 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Police General Firefighters' Officers' Employees' Pension Pension Pension Trust Fund Trust Fund Trust Fund Total Additions Contributions: State of Florida $ 249,399 $ 113,570 $ - $ 362,969 Employer 442,363 133,915 381,565 957,843 Employee 136,161 96,406 218,037 450,604 Total Contributions 827,923 343,891 599,602 1,771,416 Investment Earnings Net appreciation in fair value of investments 2,651,308 1,314,900 1,687,881 5,654,089 Gain on sale of investments 148,222 73,495 54,000 275,717 Interest and dividends 337,501 167,398 208,121 713,020 Total investment earnings 3,137,031 1,555,793 1,950,002 6,642,826 Less investment expenses (38,839) (27,447) (50,869) (117,155) Net Investment earnings 3,098,192 1,528,346 1,899,133 6,525,671 Miscellaneous - - 10 10 Total Additions 3,926,115 1,872,237 2,498,745 8,297,097 Deductions Benefits paid 448,011 126,812 272,845 847,668 Refund of contributions 2,749 10,405 28,902 42,056 Administrative expenses 53,011 45,511 55,524 154,046 Total Deductions 503,771 182,728 357,271 1,043,770 Change in Net Position 3,422,344 1,689,509 2,141,474 7,253,327 Net Position Restricted for Pension Benefits Beginning of year 14,826,903 7,349,357 8,661,206 30,837,466 End of year $ 18,249,247 $ 9,038,866 $ 10,802,680 $ 38,090,793 Page 178 of 426 111 Agenda Item #3. r.� -s STATISTICAL SECTION Page 179 of 426 Agenda Item #3. STATISTICAL SECTION This part of the Village of Tequesta's Annual Comprehensive 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. 112 Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 117 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. 121 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. 125 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. 127 Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 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OG CO 10 M IO l- 'n : � N EA 69 69 A S9 S9 z 4 > u 21 °° " y ' 'o C7 Fa ra" Fa � zxa Ha Page 181 of 426 r M N O ^i x M, M r 0 I �D M M 01 1p r M to N M ti p AgendAgenda }w ; 'T N N r O A M V M 0 M N O a `C+ oo �r 'n coo m � mIn � v O al m a m h r" N m 0 V —� 01 01 O N V N C x r O M N v x m o v r o lD a x 'n o �'n N o oc `� � O N M N M O lD 7 --i N M O M M O N N m O x M l0 N N -t r r r In ' x N m 0 m 01 O x 10 O 7 0` x Ic In 00 -i x al r- -1 N 01 r m N V In41 't M ", n O O cV nlD V1 fn x InC1 --i M lD V l0 �n O M In �r- In r- 1) �r-O r- N lD v1 AO ti r N N m � r^ N 00 N N vvv r xC, o x 1-0 � N �n �nr �n fmNr M � N M Q` ^ --i lD Vl lO N N ^ M r ^ 00 N f3 69 f3 EH b4 64 O oO lD x N x O ' In 0 r r O r r C - ,n l0 r 0 0 x ,n O \0 M l0 N r l0 O l0 O ("1 M N N .--�10 10 In of Co .--�Vi C\ M 7 m r x —i l0 01 O r x 'n N N O1 N N N 00 In M l0 Vl -� N D1 l0 V --� M x l0 V r 01 O O 00 M N x In O 01 17 01 O N �n r vl r 61 V1 O V1 N V1 V1 yr 01 a, x O N N r Vl l0 CA N va 6o En 69 64 6R O x O �t N �F �n N C'i1 \p O l0 M M G1 x C1 OO M r Q1 oc M N N In N l0 dl r 1Y 10 x Cl 1p Nr �nfn lD to �nrN ,n - to o� v m o0 o lc a N N O O V1 In --i N V x In --� r 10 01 V �n x 01 O1 00 O, r M x 'n x D\ V U( O l0 V N r M 10 lC r M r V( N 1... 69 EA 69 b9 6R fA N to O1 r a1 a, ' N N O N N 'n ct ' ^ M Vl m N r V1 7 o r O 01 O 11 4n 'n r x O CA fN r lD 'C r N O 7lzl: 41 l0 V'. M x r n ^ m O In to AD In 11 v!J - m lD V O O N r 'n m M O N r O N lD 10 N Vl O Cl r r lD kn C\ .--i Cl n 'nN O r M x ID, M Inr Vl O m x 'tlD m o1 -t 7 Gl N M --i x ff: V V N M .--i N N x m Cl M --i --i N l0 r O O O 7 l0 x 00 r l0 7 vI N x M Vl lD x r r V r x O x 7 l0 lD r 1.0 Vl 01 01 a 00 r O1 00 to O O O -� l0 r x vl N nN O -I 00 r O l0 01 N o0 00 01 01 l0 al r n a In o v-, r"vi n o M o m o nmrr a rxx v a a v z �o rM 01 v oc M �vvr — �� a o .-, 010o a LG O L~i N N 00 w 0-0W O H3 ^ 69 f3 EA EH 64 O V x 7 M x 01 N x x r O1 r l0 ' O1 l0 O 00 cn 10 7 0 r O r r v1 N ,n O O x 0 'n a, m N In O O CC)N Q d ov� �� � x �r o n N� Nolo o m 'nr o � o 00 x v v o x r oo r a r fn m N 16 v vi� oo v N o In O N V O o1 r r x r M 01 10 x 'n x x O1 r x ,n V moo r o x w a o x x N ^ x m v a a N N N 7 lC oo .� ri vi yr a1 oa. U Z Q N to N 00 't N O x oc to x 01 v 0, 'n r �n oo M to O oc O oa 00� o � N � -0 �N� o_ ll � r N o' .n 01 •--i l0 x x C1 l0 N !n 'n M O In41 r O M ^ O oc V In'n01 -� Vr M M r V1 N �0 r x •--i N V1 x Q` N x O1 10 fry > Q O N O l0 l0 •--i l0 O M 7 x V1 x r V M V M O x V N N r^ ^ �n v1 r N vi � D1 G✓ x 69 EA 69 69 b4 EH 01 r 0` 'n ct x 'n to to o 'n �Y m 10 N O lD 't O r fJ a1 01 -� r O N Q 0 0 O -� 'n N r x r r V'1 r lr x x l0 Vl x lD O x m 01 41 x r x 0 M r N `7 O C\ r G1 V V Q1 01 M l0 'n O N m --i r x ID ^i vl N Ol x O �n ^i M lD r O N N "I N 01 m N �/'l ' r 0 o Ol l0 ' 01 M o 0 0 r x M r 0 _ al r r 0 7 M 0 M x r D m D z x r m r^M N o a, �? oc rn N ll h N V N l0 V 01 N CA I, M 1p In r x l0 N Dv x O lC In 10 -� l0 N r - l0 t r �n x lr to V to N In r N x V', l0 � r x -- In Vl ^i M Q` N 7 l0 O r V1 V V M f3 69 f3 EA EH 64 y v S. a y bL R K OD w H � U F J T O 7 J sue'. G N R a i o c°n C a '°ti v en a R L � � O FaP418fof426 w F H Hw a, Fx w Hx Fa z F Agenda It m A 3. M NO xO O MNN00v�11 31 �D lM� OG1 m NOO l0 7 0O'n0 x clir- x 17 V 69 69 V1 ,-C-i M° 00 _ 00 00 00 of NO m •--� V7 Vl x 'n M x xoc V1 lC Vl O Vl N °1 N rr, N 'T EA 'f3 NN x lr V1 V1 01 7 7 N O O C N x M Co x �p Vl x � N 1n V C M l0 V'1 N x `--'V x M V1 1:11 N N 64 'A W O x O� V1 'S M � •--i x °1 64 'A M l� N T N lD lD Vl M ' l� N M Ol w moor` I — � coN x n , rn � 7 lC M c, 171 l� I� �O l- — v� N M N N x O �1 � ll O1 O N l- M l�7 00 l� l� N l0 'n N ca v� N Ic jc7 M N N m M x N 'n M x x I° l° O 'n °1 vi V Vl M l- l° N l- x N N r- O o °� o l° n n m o o N v lr kn n W H x O l0 O1 oo N 4 m O I° ' d; n GD lfl x N M FBI U O lY � N Vl 0000 M ,� N � w � w F" m � � oInlDIc o � � ' o o No N O N 7n N lO x by x N N O V1 N O, x 0 x O M M l0 I' c, N� C 6R y3 01 00 N U1 It 69 5f3 v S.i w C R y b � C a � Page 183of426 Agenda Item #3. 0 0 0 01 O V�O rl N � OcIc 'n p l� M Vl N x M M V N se ss ss va 000Nv �o N � � v a� 00 N M 01 O M IO p V' N 'n x ss vv va x N on N S.2 x O M p x N 'n O M O V M N O N N x N EA EA EH Ef3 p l-- O 01 'r O [� M O, M Cl x po, Nx x O O x M oc L- x N r. O 'n 'O .O � l N '.O N M �C O 'n 'n O N IO IC x M p r- 'n Vi M N 10 6R fA EA 69 O z o N x O O x rrIM� p o o o oo 7 7 r-i w O r v-, VCD In r W M IC C1 � lc 'n Ic bRIn 69 EA HM U x O N M N F+MAI rn fA EA 69 N ' l— N ' --i ' N M W l� 00 IO M M �D �p 7'n O 01 O x O o0 01 O O M fH bR 69 'A 10 M R 59 69 Y y a c � � w w � � c C ^L+ m C It O o a o Page 184 of 426 Agenda Item #3. Norma �c Mx � OM v In 10 In fir` M m �o o D Q Q x N M N V �n o ") M N 4 01 01 01 01 01 C C ANON rn � Ca cn � � v N � � Ma N xxv �n o M M 41 N N O C1,--i 10 O= D`, N N'O Z M �O N _n 01 c,o N O, N N l� 4` O C x ,--i 1n -�. O M CJ x CA r` C\ C,, x �D V Vl p - C V'; '�0 0` N x N r V� N x --i 01 x x --� O N � ClIn Ol V x V1 1p r- O 1� l0 \O O r- --i O N N x pp ' O O O x N r- N M O C1 7 V1 M O O l� O V1 N 7 O M n O x Vl x Cl � `0 7 M O �C M .� �Vl dl N O l� 01 --i � C\ � M x x M O_ r- M M M CA 'r, Cl Vl r- �O ' O N C) O N N x V1 M M ID, N O N 10 x M N Vi N x M p u. V Vl Q` C C x �O 0,. N a --i '0 � x M C Vl N N N x IO x oo ,--� 6R f h In f- N \c r� x x 01 M Ol "D r - 7 M N N M V1 0 M `C l0 7 C o x r- x N O M C` V) V) 01 I M C, C` Ol N N O M 1C M O x �_ Ic N \c M In Vt � Vn O --i M n O M N Vl -� to 1= 0Y p Q, x x V; x N N .--• ,--�, O 64 64 p M N C` C V1 �c N 0\ N M r- h N x M M x c M 7 U( 01 C x 01 N 7 C C Io r- Ol c N N M 01 x N M cr l- M of --i O 01 N a 01 O M In M M N C O N Vl M C x 1p V•, O M C, N 01 N N •-• r N "n 59 64 O x N N "0 M M N x M m'n c x x M Ic [� O O G1 " Vl N O V) 10 V1 c x �0 C- 171 G; r` l✓ O O N O 0 0 O 'c O C M Ol N d`• Vi�c Vl D1 x N l- 't � M O N_ O N O O Vl n G1 M CA O --i x N p x kn x O V� O O N � V1 M N N O N N v) N N x 7 M l� r1 ~ N M N O M �D I- Q �. Fi3 r- � N..x - •M• r. � .--� 69 M \O M O l- 0) r- O C1 C1 �c C1 M dl O, O O 10 7 Ol Vl r- In � N N in x C1 n Vl 10 V' r- t V 7 Vl al Ic O �c r- x M N 10 C1 r- 7 V) O O 17 h V' lr M M r� V Vl N ff C c Vt 01 N O M N N N ID 10 I- N Vl M x N --i C` V; c) Ic 4` Vl - O C` N N N N N_ w CY U o Ox10N l In N 69 ,- r. N W W U N V \C p r- - O r- 'c I0 V N C1 O V 7 M 7 x O O n 'n M c 01 Vl r- M O C1 - N 7 7 V1 N O 7 N M M I'C M p p C` 01 L' O M M c N n N n 00 C i N -� x 2 D1 M M V) rl 10 M 0, O l-- - M N x O Cl N O x h 0, 0,'t ^ N O> O O M M \p r- 41 In O l-- C1 Vl 01 N O x --� �0 1D 0, N C` N �--i W N U Z ax7M V Nl- N v No oo A d I-- CDoN .o11) moIn x ll v IX) 00 00 oz� N o C1 Qn x N 0 't I0 l0 r- M C N N r- M In N x Ic N CA r- N C M 7 N N N 4 r- M 01 O 1 1p Ol C, l �, O M V1 C- �O N Ir M It O O O M �O N V� V 01 ^ M F1 to x N Vl \) N 10 'o M It l- Q1 N N r- 01 M Q1 x x M U' 10 O O M M c x Ol N C V1 n C\ lo x x N r- O x 01 al ti M M [� n O M \0 lO Vl 0` p C1 -r x r- D, 0, N V ~O N 7T 't - - IO N N O V N N ul r N EL3 65 M O N N �D V C1 dl M Q\ O 10 M r- O Ic Vl b V) O O O O Vl N v, � V -� o1NMN � v� o MxNN �n Mx � x oom M r- I� 01Mm -� — Nv � o1M N rn oo � �o �n cr �CANi�r- Z) r- ooNi -4 r- 0, IC; Ico1M ,� -r �nNo1 -� o — No1 M — m x v`r'i L'n x M y O O 7j ai U � C3 a a0+ y r F- � wU � L7 := � u, � w � FO- W U UCH Fy W O OF- H O Ems- z Az Page 185 of 426 Agenda Item #3. w b b � a u :o M N O -• --� --� O o0 � h Q � � 0. M M �O lc N --� 01 7 d1 O V1 h M Cl O r1l y y co n Ol M N N �n o .� "' CC I, N n � M 00 Vl 'lO O c�E y Ca O 7 ID cl N ftl iC l� O, M O+ r- a+ cC t0 .� N 7 Vl lO l� CO N 69 y O O O O 0 0 O O O V1 01 N N N 'AV1 IC 10 1p 11:11 10 ID 10 'ID 10 I. N IO 01 7 M o0 Q, 01 U l� N CG M M W Q, 01 V' O1 n O cl N lO l M Nry 'b M M N N O N a, � y M Q` Q` W Cl C< N M V N N .-y PLO ;4 W a b y y M Mi O M B V N OC o0 01 O`, 01 01 O O ' CA d OlM N ON a p w U W F Z Co 0o M OOl 101 1-- Ol O IO U W n � N W 00 N U r b N CO l� 00 �O N Q O r- ICI r, _ C "C C 00 N N M 00 01 M Ol O, "O '"J O 7 O1 ,:) N M U m O c0 O Ol 'd y cf O l� N N 01 N a, W W 7 00 M I� N \O M N U dJ cl MN \'ell �CC W O G, M N N IO O <d ID N 1n ,--i V. ��I cAC y 7 c, 7 c- M N N N Oc .'�-• O G 7 7 O` 'O ' ii N lO G,� 7 --i O O C ED. � O p-i O N M 7 l- C, 7 Ol fl+ 'd 01 N h O1 rl 7 M oo y O Q\ O\ x r- O, G1 7 h N N C\ N 7 7 7 n 7 tl na O1 X 01 O d, n r- OC LO OC ni 10, G � O U � s °O 7 y FG m 0. N N N N N O c+ O O O O O O O O O O W N N N N N N N N N U � U w a Page 186 of 426 Agenda Item #3. U cl� OO r: N N N N l� x N 7.) In I-- O M l-- l-- cM OC OD .OV. OO N O O �O �C lO rV �O �O llO lr� I:� U O O O O O O O CD O O 'O U y Z O O Cl O O O O O Oc H z z ���Cjj v •y CO � 00 � 01 �D N N V r4 C) �V �I bq U�+, tv D1 D1 a1 a1 �oll Ol = V r- 1 Ln .M-i V1 M N N .�71-i .�7N-i F 0-0 Po Q O O O O O O O O O O y Fi p. CC v� > rWr Q N OO M G O l— M CA I/ W O O` 01 00 O1 00 00 00 l-- Ln Vl Vl V1 Vl Vl V. A a U O O O O O O O O O O y d U o 0 0 0 0 0 0 0 0 0 00 V1 d Oo "0 t` W � � M M M O O O O O O O O O O N 00 V1 V1 M 01 O O I-C, rA N M 00 07 rr L, Q O O O O O O O O O O L y y U J w +�+ ^� x OC Oc 00 0o c0 00 00 O U q -zi q -i 7i -i -i -zi V 7 n O b :J O O 04 M y O O O CD O O O O O Vl O Ol Ol 01 D` O` N CA CAN � O py N N N Cl! N '11; 11; llc� ll� SOr > 1C. lG `O 10 \O '10 10 \O 10 Q p co a o N0 M C o 0 0 0 0 0 0 0 0 0. N N N N N N N N N N � y w Page 187 of 426 Agenda Item #3. o � �n --� � O � O O O> "C in 4 4 V V'1 O N O oo N N v O O n M 0o N o0 00 �n oo D p l l� CO 09 r- M 00 00 00 CIA OC cn O •--� •--� •--� CD Cc H 64 b9 O Q N bA 0 Fni/I y 0 0 0 0 0 0 0 0 0 o p W O IC N 01 N 00 M 1n 00 � Oc V)\G � M ,� GO CO l� \O � V') c+M •--� •-- --� O O O O O O N W a W a H V1 � Z M M Ln "o t- oo 01 Fi Z N w' N a1 �•I c• r- Oca, � v �o o "a lr 00 M M in 01 Oc 00 � � N V) O C in v) O l Vl 41 M O Cn C,3 U C�3 CNN - — — — - — — N � ' N �, a a a cct 'In N � _ o a a U +° F�- 0 ct ° 46 c3 ct V _ 00 O Oct NHMC7zr� wF- Qa1HHQHHW E-� Con Page 188 of 426 Agenda Item #3. N � O O O O O O O O M � M M � O CIA 00 OC O 0. O d\ O 00 M M �D O M V1 O Wn 0 N 00 CO O l� M Ln l— 00 OO �n cc N O t O N O 00 07 rq o d H Cl c0 \O O1 M Ln Ln A OC OC M N M C1 O1 l— CJ I� �I Q N � � M � M � •-- 01 O � �Oq o W U o00000oa s U M CAC� � � M M 0 N O1 M OC � +- ,�, U CD CD CD CD CD 0D CD CD �O N W > y a O, Oc cc O O, 00 � �c O O �I 'C Vl C1 C1 OC OD Nt M O Oc � u h 9 Os �D kn �O M Q1 � 01 It V') M M �n OC N O\ Oc N N Ln O l� 00 N W) V1 o t� D cV � OC N o1 O OC l- fV l- M Cl00 D U 1. l— O1 00 O1 y O n 0, y U in Ln �c �D t� l co 0c 01 C14 ci O N O v U V) oo m 'T K U N N N O O O O O O O O O O N W y N N N N N N N N N N � U O Page 189 of 426 Agenda Item #3. �0 l� M � Oc IC N � N O M � O "t �--� a1 O N Oo Oo 01 00 lO l— 'n M N U 0 0 0 0 0 0 0 0 0 0 bA l� M �C M ti 41 M DD V) N O Oc 01 Vl N O y U U � C� O U M OC M M M 1.D OC N C V> GO M a1 M M 1.0 00 M 41 � A M O N 0c 00 01 kr� l- QW W o0 0 V� � Oc v y N o Oc oc Oc "0 0 i •� 0 Oc � V% l� V') .-� .-� M V) O oo --� M O 0\ �--� M M 0� Oc 00 O FI rn O CV M V) 01 M l� V) 01 W O r- 01 r- N ` r- OD U W U O h Oc � M M cc U kr) V) N N N Mcz y U N N rM 0 00 C, O O N O AC M O N — .-ti — — bR N ,s bA M v bA C 0 M 00 01 C .--i Cl M d' --i N N Q �r u O �T. 2 Page 190 of 426 Agenda Item #3. blo D r M � 00 1.0 cV N 0 i It o � — � o N o0 00 M N 61 00 AO l� Ln M N ZU o a 0000000000 00 r a � a o 00 M M \O \O N O V7 00 M OA n 00 M O� A (� u r 01 l- M 00 00 M .-ti 00 o H y Oc cz y O [�•I o, 0 00 D r- � Ic N Z M �G M M I'O M \p `O N O N V% 00 M 01 M I VO 00 M 0� ..�- A M � C1 N M 00 00 M �-T OO M O N Oo 00 a m u? l O � M r- � z V� -t -t O 01 00 l O N C o, � � — "0 Oo o U1 [-- N 00 M � M O 00 V1CN MONO O O O; O O OO N Cl I- 00 U z Ln z 01 l- O �t fV fJ 01 M W V'1 V'� l� V"1 V'1 l-- [� O 00 00 00 z •� a O o � o _ W M � � � N d "O w O w �o- .� N Page 191 of 426 m M a Agenda Item #3. o � a MJ IO N O O V O O N Oc O CO W � O O CD �n n s9 s9 ai 00 00 c � n O O O O M In In N Jn Q1 f3 f3 M M a GO 00 p V V O N OOo OOO O CM M rl � � N v R, � 64 69 9. sue. O kC O O, a W N T y 4 O O n v A to N cl w Q ° n ° s9 s9 c* 00 c Q N N O al d ;n N A A V F N N O W OD N C N O O � � O W l r N N O � N N EA 69 N N c � � O In Q p O S O O p M M N a, 0 0 o p O`01 M O O a h � M M O I.O O O O � O FFi 69 W N O cn Z Z Y � U N y c � � Page 192 of 426 ite � � C •r .n � O ✓ cf> �7 4'' 1U �y Y N y �9 oa O O �y G` n N y to 0 CIS a � � w M ti 4 tL w o � st, ct o ° ir- �o y rd A a` � � U on ✓ �, d U R Q owe a �g3o{ 4r pa9 Agenda Item #3. � � �� o00000000a O H � O U U M \O zJ- O o0 OO rq rq V) cq N W -- V ct N W A w ct OO O N �10 kn Wct00 M V7 O N M 00 01 U G N M O\ O V) (n t 00 01 M I- O l-- C' \O 00 M .--i � — cC M M I- 't 7t V'1 \O \O l� N H 5O N O O cn O C15 �n W � � N U • N � OO ON C�5 �O 01 M V7 V-) n kn V1 n 41 W U W O 00 00 +, U ct O V1 V) V) v') V) v') 11O 1�0 } 73 Q � Page 194 of 426 Agenda Item #3. VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL EMPLOYERS-PALM BEACH COUNTY CURRENT YEAR AND NINE YEARS AGO 2024 2015 Percentage of Percentage of Total County Total County Employer(service providing) Employees Rank Employment Employees Rank Employment Patin Beach County School District 22,218 1 3.0% 22,000 1 3.40% Palm Beach County 12,367 2 1.6% 5,507 3 0.80% Florida Atlantic University 6,335 3 0.7% 2,655 6 0A0% Tenet Coastal Division Palm Beach County 5,734 4 0.8% 6,100 2 0.90% NextEra Energy,Inc. (Hdgtrs)/FL Power&Light 5,598 5 0.7% 3,854 4 0.60% Baptist Health South Florida(prev.Bethesda Hospital) 3,135 6 0.3% 2,600 7 0.40% Veterans Health Administration 2,948 7 0.3% 2,500 8 0.40% Hospital Corporation of America(HCA) 2,612 8 0.3% 2,714 5 0.40% Jupiter Medical Center 2,540 9 0.3% 2,000 10 0.30% The Breakers 2,300 10 0.3% Boca Raton Regional Hospital 2,500 9 0.40% 65,787 8.500% 52,430 8.0% Source: Business Development Board of Palm Beach County,Florida(last updated January 2024) Employment information for the Town is not available Page 195 of 426 126 Agenda Item #3. � allo o v v .o T o o, ('V •--I In OG r~ N O 0 N Ocor- o o 0 N C-CoV- o �_ o N N •� vi � N G1 O N Oc O N O N O v) M N 't .-r N N a O N oo M 00 N •--i M N y A O r- N N O > x C F m OOo � rAr- cn No N a C Q� Z W N •� W �" > 000�+ U a o o o oono v'i W rW a ur O M rq oo N N CL W Q � M O N Oo O -O N 'G c3 Sy 7D U 44 34 �. y 4 CL y � y i oC7Q F� y1 0 � 3 � c c O o Page 196 of 426 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRANI LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental Activities General government Registered voters 4,634 4,813 4,017 4,951 5,056 5,204 4,971 4,960 4,454 4,611 Public safety: No.of full-time certified police officers 19 18 19 19 19 19 20 21 20 20 No.of calls received 3,853 3,109 3,442 3,443 3,614 3,571 2,375 2,735 2,766 2,650 No.of arrests 174 94 108 69 61 46 40 43 32 43 No.of parking violations 207 61 39 20 48 48 34 - - 86 No.of incident numbers issued 552 345 312 254 259 181 280 434 371 348 Fire department: No.of full-time certified firefighters 22 22 22 22 21 21 21 22 22 25 No.of emergency responses 1,291 1,409 1,286 1,227 1,168 1,226 1,186 1,174 1,374 1,390 No.oftransports 1,006 817 722 724 721 1,017 684 941 816 868 No.of fires extinguisbed/alarms 285 254 309 267 206 323 263 164 198 119 No.of inspections 499 654 742 608 767 405 558 648 720 682 Building,zoning: No.ofbuilding permits issued 1,034 1,583 1,755 1,356 1,226 1,198 1,412 1,522 1,592 1,371 No.ofbuilding inspections conducted 1,705 2,472 3,017 2,634 2,649 2,611 2,429 3,857 3,817 4,599 Leisure services: No.of Spring Classes 8 12 10 10 10 7 4 14 14 14 No.of Summer Classes 4 4 4 4 4 - 1 18 18 18 No.of Movies 3 3 3 3 2 - - 1 - - Business-type Activities Water: No.ofcustomers 5,038 5,055 5,042 5,087 5,084 5,070 5,070 5,087 5,101 5,118 Average daily consumption 2.500 mg 2.600 mg 2.700 mg 2.781 mg 2.642 mg 2.656 mg 2.573 mg 2.626 mg 2.683 mg 2.740 mg Sources:Various Village departments Page 197 of 426 128 Agenda Item #3. VILLAGE OF TEQUESTA,FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 12 10 12 11 11 12 13 13 13 Fire: No.of stations 1 1 1 1 1 2 1 1 1 1 No.of ambulances 2 2 2 2 2 2 2 2 2 2 No.of pumpers 3 3 2 2 2 2 2 2 2 3 Transportation: Miles of street lane miles 24 24 24 24 24 24 24 24 24 24 No.of bridges 1 1 1 1 1 1 1 1 1 1 Leisure services No.of parks 6 6 7 7 7 7 7 6 6 6 No.of park acreage 62 62 62 62 62 62 62 60 60 60 No.of playgrounds 2 2 2 2 2 2 2 2 2 2 No.of baseball/softball diamonds 3 3 3 3 3 3 3 3 3 3 No.of skate-parks 1 1 1 1 1 1 1 1 1 1 Business-type activities: Water: Miles of water mains 73 77 77 77 77 72 74 74 74 74 No.of fire hydrants 430 456 435 435 435 579 580 580 580 615 Storage capacity(thousands of gallons) 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 Sources:Various Village departments Page 198 of 426 129 Agenda Item #3. • a REPORTING SECTION Page 199 of 426 Agenda Item #3. 4 T T- MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor,Village Council and Village Manager Village of Tequesta,Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida (the "Village"), as of and for the year ended September 30, 2024, and the related notes to the financial statements,which collectively comprise the Village's basic financial statements and have issued our report thereon dated March 10,2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Village's internal control. Accordingly,we do not express an opinion on the effectiveness of the Village's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 1401 MANATEE AVENUE WEST,SUITE 1200•BRADENTON,FLORIDA 34205•941-747-4483•FAX 941-747-6035•www.mjcpa.com MELIBERSOF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 200 of 426 Agenda Item #3. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Bradenton,Florida March 10, 2025 Page 201 of 426 131 Agenda Item #3. VILLAGE OF TEQEUSTA, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 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 Prozrams and State Financial Assistance Proiects There was not an audit of major federal award programs or state financial assistance projects as of September 30, 2024 due to the total amount expended being less than $750,000. SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES None reported. SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Not applicable. SECTION IV STATE PROJECTS FINDINGS AND QUESTIONED COSTS Not applicable. Page 202 of 426 132 Agenda Item #3. VILLAGE OF TEQEUSTA, FLORIDA SCHEDULE OF FINDINGS AND RESPONSES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 STATUS OF PRIOR YEAR AUDIT FINDINGS None noted. Page 203 of 426 133 Agenda Ite I r TV MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S MANAGEMENT LETTER To the Honorable Mayor,Village Council and Village Manager Village of Tequesta,Florida Report on the Financial Statements We have audited the financial statements of the Village of Tequesta, Florida (the "Village"), as of and for the fiscal year ended September 30, 2024 and have issued our report thereon dated March 10, 2025. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Schedule of Findings and Responses; and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule,which are dated March 10, 2025 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(I)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations in the preceding annual financial report requiring correction. Official Title and Legal Authority Section 10.554(1)(1)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The Village was incorporated in 1957 by laws of Florida 57-1915. There are no component units related to the Village. 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. 1401 MANATEE AVENUE WEST,SUITE 1200•BRADENTON,FLORIDA 34205•941-747-4483•FAX 941-747-6035•www.mlcpa.com MEMBERS OF THE AMERICANINSTITUTEOF CERTIFIED PUBLIC ACCOUNTANTS I-'ag@ 204 of 426 Agenda Item #3. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Village. It is management's responsibility to monitor the Village's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Section 10.554(1)(1)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. q4Z4166i" Bradenton, Florida March 10, 2025 Page 205 of 426 135 Agenda Ite I T F MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT ACCOUNTANT'S REPORT To the Honorable Mayor, Village Council and Village Manager Village of Tequesta,Florida We have examined the Village of Tequesta, Florida's (the "Village") compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2024. Management is responsible for the Village's compliance with those requirements. Our responsibility is to express an opinion on the Village's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Village's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Village's compliance with specified requirements. We are required to be independent and to meet our ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. In our opinion, the Village complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2024. 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 10, 2025 1401 MANATEE AVENUE WEST,SUITE 1200•BRADENTON,FLORIDA 34205•941-747-4483•FAX 941-747-6035•WWW.m cpaxom MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS age 206 Of 426