HomeMy WebLinkAboutDocumentation_Regular_Tab 02_04/10/2014 `✓ILLAGE CLERK'S OFFICE
AGEMDA ITEM TRANSMITTAL FORM �;��� �d;;.,. '� r� i j�' "--
Meeting Date: Meeting Type: Regular Ordinance #:
April 10, 2014
Consent Agen��a: �;:��•: ��:��.�<-.: �i�, ;�v���.�n. Resolution #:
Originating Department: �� ^�;os� �:,� i�: ;�� ��.�..
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Presentation of the Village of �equesta's Comprehensive Annual Financial Report
(CAFR) for Fiscal Year Ending Septem��er 30, 2013
, . .
Account #: N/A Amount of this item: N/A
Current Budgeted Amount Available: Amount Remaining after item:
N/A N/A
Budget Transfer Required: ��:;�us��� ����� Appropriate Fund Balance: ��:�4� ��! i�arr.
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Presentation of the Village of Tequesta's Comprehensive Annual Financial Report (CAFR) for Fiscal Year
Ending September 30, 2013.
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Department Head
Finance Director or Representative ' _
Reviewed for Financial Sufficienry �� ; ` f 1�r'
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Attorney: (for legal sufficiency)
Village Manager:
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Submit for Council Dis,c,t�ssion: : :---�-" `"- - �
Approve Item: 0'��'
Deny Item: �
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Form Amended: 3/14/14
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From left to right: Council Member Thomas Paterno, Vice-Mayor Vince Arena,
Mayor Abby Brennan, Council Member Frank D'Ambra, Council Member Steve Okun
VILLAGE OF TEQUESTA, FLORIDA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Prepared By
Finance Department
The Village of Tequesta, Florida
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Letterof Transmittal .............................................................................................................. i-v
Certificate of Achievement for Excellence in Financial Reporting ....................................... vi
OrganizationChart ................................................................................................................ vii
List of Principal Officials "'
..................................................................................................... viii
II. FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT ........................................................................... 1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS ..................................................... 4-16
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statementof Net Position .................................................................................................17
Statementof Activities .....................................................................................................18
Fund Financial Statements
Balance Sheet — Governmental Funds ..............................................................................19
Statement of Revenues, Expenditures and Changes in Fund Balances —
GovernmentalFunds .....................................................................................................20
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ..................................21
Statement of Net Position — Proprietary Funds ................................................................22
Statement of Revenues, Expenses and Changes in Net Position — Proprietary Funds.....23
Statement of Cash Flows — Proprietary Funds .................................................................24
Statement of Fiduciary Net Position — Fiduciary Funds ..................................................25
Statement of Changes in Fiduciary Net Position — Fiduciary Funds ...............................26
Notes to Basic Financial Statements ............................................................................. 27-69
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General Fund ..............................................................70
Note to the Budgetary Comparison Schedule .....................................................................71
Schedule of Employer Contributions - Pensions .................................................................72
Schedule of Funding Progress - Pensions ...........................................................................73
Schedule of Funding Progress - Other Post Employment Benefits .....................................74
VILLAGE OF TEQUE5TA, FLORIDA
TABLE OF CONTENTS
SUPPLEMENTARY INFORMATION
Combining and Individual Fund Statements and Schedules
Combining Balance Sheet — Nonmajor Governmental Funds .........................................75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances —
Nonmaj or Governmental Funds ....................................................................................76
Budgetary Comparison Schedule — Special Law Enforcement Trust Fund .....................77
Budgetary Comparison Schedule — Capital Improvement Fund ......................................78
Budgetary Comparison Schedule — Capital Projects Fund ..............................................79
Combining Statement of Net Position — Nonmajor Enterprise Funds .............................80
Combining Statement of Revenues, Expenses and Changes in Net Position —
Nonmajor Enterprise Funds ...........................................................................................81
Combining Statement of Cash Flows — Nonmajor Enterprise Funds ..............................82
Combining Statement of Fiduciary Net Position .............................................................83
Combining Statement of Changes in Fiduciary Net Position ...........................................84
III. STATISTICAL SECTION
Net Position by Component ...................................................................................................85
Changes in Net Position ................................................................................................... 86-87
Fund Balances, Governmental Funds .....................................................................................88
Changes in Fund Balances, Governmental Funds ..................................................................89
Assessed and Estimated Actual Value of Taxable Property ..................................................90
Property Tax Rates — All Direct and Overlapping Governments ...........................................91
PrincipalProperty Taxpayers .................................................................................................92
Property Tax Levies and Collections .....................................................................................93
Ratios of Outstanding Debt by Type ......................................................................................94
Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt
PerCapita ............................................................................................................................95
Computation of Legal Debt Margin .......................................................................................96
Direct and Overlapping Governmental Activities Debt .........................................................97
Pledged-Revenue Coverage — Revenue Bonds - 1994 ...........................................................98
Demographic and Economic Statistics ...................................................................................99
Principal Employers — Palm Beach County .........................................................................100
Full-time-Equivalent Village Government Employees by Function/Program .....................101
Operating Indicators by Function/Program ..........................................................................102
Capital Asset Statistics by Function/Program ......................................................................103
VILLAGE OF TEQUESTA, FLORIDA
TABLE OF CONTENTS
IV. REPORTING SECTION
Independent Auditors' Report on Compliance and on Internal Control over Financial
Reporting and on Compliance and Other Matters based on an Audit of Financial
Statements Performed in Accordance with GoveYnment Auditing Standards .......... 104-105
Management Letter in Accordance with the Rules of the Auditor General of the
Stateof Florida .......................................................................................................... 106-107
Page Intentionally Left Blank
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March 24. 2014
To the Honorable Mavor.
Members of the VillaQe Council
And Citizens of the VillaQe of Tequesta, Florida
Florida law requires that every �eneral purpose local Qovernment publish, within nine
months of the close of each fiscal year, a comp[ete set of audited financia) statements. This
report is published to fulfill that requirement for the fiscal year ended Septe»lber 30, 2013.
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal
control that it has established for this purpose. Because the cost of internal control should
not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute,
assurance that the financial statements are free of any material misstatements.
Marcum LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion
on the Villa�e of Tequesta's financial statements for the fiscal year ended September 30,
2013. The independent auditors' report is located at the front of the financial section of this
report.
ManaQement"s discussion and analysis (MD&A) immediatelv follows the independent
auditor's report and provides a narrative introduction, overview, and analysis of the basic
financial statements. MD&A complements this letter of transmittal and should be read in
conjunction with it.
PROFILE OF THE VILLAGE OF TEQUESTA
The Villaae of Tequesta, Florida is a municipal coi•poration or�anized June 4. 19�7 pursuant
to Special Act 57-1915 Laws of Florida. It is approximately 2 square miles and is located in
northern Palm Beach Counh_ Florida. It is almost completely built-out/developed.
i
Tequesta's growth potential is restricted by the natural boundaries of the Atlantic Ocean to
the east, the Loxahatchee River to the west, the Town of Jupiter to the south and Martin
County to the north. [t is empowered by state stature to extend its corporate limits by
annexation, which it has done from time to time.
The Village has a Council-Manager form of government. Policy-making and legislative
authority are vested in an elected governing body of the Village consisting of a five member
Village Council. Council members are elected at large and select a Mayor at their first
organizational meeting each year. Council members serve two-year terms, with three
members elected every other year. The Village Council appoints the Village of Tequesta's
manager, who is responsible for hiring all Village employees.
The Village of Tequesta provides a full range of services, including police and fire
protection; building inspections; licenses and permits; the construction and maintenance of
streets and other infrastructure, recreational and cultural activities, water services,
stormwater operations and contracts for residential refuse and recycling services.
The Council is required to adopt an initial budget prior to beginning of the fiscal year on
Octoher 1. This annua] budget serves as the foundation for the Village of Tequesta's
financial planning and control. The budget is prepared by fund, function (e.g., public
safety), and department (e.g., police) and is adopted by fund total. Departments may
transfer resources within a department with the approval of the budget officer and the
Village Manager. Transfers between departments require the budget amendments be
approved by the Village Council, while changes to the total fund budget requires approval
of the Village Council by resolution.
Local Economy
The Village of Tequesta, located in Palm Beach County, Florida, is home to middle to
upper-income suburban families. Tequesta has a small commercial area and no major
industries located within its boundaries. The Village of Tequesta is home to a number of
assisted living facilities, private schools and a high-end treatment center.
Prior to 2008, Tequesta's unemployment had been relatively stable. We saw an initial spike
in rates during fiscal year 2008 and during the following few years, the unemployment rate
rose from an initial low of 3. ]%(2005) to a peak high of 11.4% (2010). Rates began to
decline in 2011 (11.0%) and have continued this trend. The uneinployment rate for Palm
Beach County at the fiscal year end was 7.1 %. This rate is lower than the national average
of 7.2% during the same period according to the U.S. Bureau of Labor Statistics. [ncreases
may occur in the future, however, early economic forecasts suggest a leveling off in
calendar year (2014).
According to the last census estimates, median household income for Tequesta was $58,843
which is significantly higher than the nation as a whole ($44,512). Tequesta is beginning to
see a positive change in the housing market as property values are beginning to increase.
ii
Per the Palm Beach County Property Appraiser's Office, gross taxable value for calculating
ad valorem proceeds increased from $780 million during fiscal year 2013 to $817 million
used to calculate 2014 revenues — approximately 4.7% higher than the prior year. The
Village of Tequesta is expecting a slow but steady increase in properly values over the next
few years.
During the past ten years, the Village's expenditures related to public safety have increased
in amount and as a percentage of total expenditures in governmental funds (currently $6.2
million or 50% of total general funds expenditures, an increase of $2.06 million from 2004).
Much of this increase reflects a trend that has seen the salaries and benefits of police and
firefighters growing at a much faster rate than those of other categories of public-sector
employees.
During this same ten-year period, charges for services related to public safety have also
increased in amount and as a percentage of total revenues reflecting a ten-year increase of
$604 thousand from 2004. In the most recent three-year period (2011 through 2013) this
revenue source has followed a downward trend with revenues decreasing $141,135 during
that three year period. However, the Village of Tequesta renegotiated a contract for fire
rescue service that begins in fiscal year 2014 and we expect to see this revenue source
increase by $177 thousand.
Long-Term Financial Planning and Major Initiatives
Unrestricted fund balance in the general fund at year end was 21.8% of total general fund
revenues. This amount was above policy guidelines set by the Council for budgetary and
planning purposes (i.e., two months of general fund revenues, approximately 16J%). The
Village of Tequesta has always spent conservatively while providing the highest quality
services to its residents. We continue to cautiously watch the "gap" between revenues and
expenditures. To protect the investments our residents have made in tlleir community, the
Village increased the millage rate to 6.0500 from 5.7671 which was an 8.69% percent
change of the rolled-back rate (the rate required to bring in the same amount of revenue as
the prior period). It has not been easy to maintain a consistently high quality of services to
the residents, while protecting the assets, the level of service and the quality of life that the
residents of the Village of Tequesta have come to expect. It is the result of hard work, long
hours, pay and benefit concessions and the making of fiscally sound, responsible decisions
by the administration, working staff and Village Council that allowed the Village to meet
service demands while minimizing the financial burden on its residents. The Village is very
fortunate to have a citizenry that is active on many boards and committees, a working staff
that has shown its willingness to take on additional responsibilities, an expanded workload
and very importantly, a Village Council that is very responsive to the needs of the residents
and staff and who donate so much of their time to this community. If the future of a
community is dependent on its people, then the future of Tequesta is bright and we expect to
successfully meet challenges that come before us.
The Village of Tequesta's primary focus is providing exceptional municipal services
to its residents in the most efficient and cost effected manner possible.
iii
Continued economic challenges require innovative approaches on both sides of the
balance sheet. Efforts to expand contractual services to generate additional revenue
should continue to be considered.
The Village should continue to modify its traditional public safety plans, if an effort
to reduce costs and future liabilities.
The Village continues researching ways to control the growing cost of health care
and post-retirement benefits and has implemented changes and negotiated
concessions with the current bargaining units. Tequesta continues to discuss options
with the three collective bargaining units to control the cost of post-retirement
benefits.
MAJOR INITIATIVES
• Continue to explore alternative revenue sources, at both the state and federal level,
with the assistance of a professional lobbyist.
• Seek out new ways to reduce the cost of health care and post-retirement benefits.
• Negotiate a new franchise agreement with Florida Power and Light.
• Develop a viable capital improvement /capital replacement plan.
Relevant Financial Policies
The Village of Tequesta has adopted a comprehensive set of financial policies.
During the next fiscal year, the Village will be reviewing and updating its Water
Utility policies.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to Tequesta for its comprehensive
annual financial report for the fiscal year ended September 30, 2012. This was the twenty-
ninth consecutive year that Tequesta has received this prestigious award. In order to be
awarded a Certificate of Achievement, Tequesta had to publish an easily readable and
efficiently organized comprehensive annual 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
comprehensive annual financial report will continue to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility
for another certificate.
The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff of the Tequesta's finance department. We would like to
express our appreciation to all members of the department who assisted and contributed to
the preparation of this report.
iv
In closin�, we must also acknowledtre the Mayor and Council for their unfailin� support for
maintainin� the hiQhest standards of professionalism in the mana�ement of the Villa�e of
Tequesta's finances. �
Respectfully submitted,
=�__._-
_ _ ��'
C�T� � �
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Michael R. Couzzo, Jr. JoAnn Forsythe. CPA
Villa�e Mana�er Finance Director
v
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reportin
g
Presented to
Village of Tequesta
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2012
�
Executive Director/CEO
vi "
VILLAGE OF TEQUESTA, FLORIDA
ORGANIZATION CHART
SEPTEMBER 30, 2013
� Residents of Tequesta
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Village Council
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Village Manager I Village Attomey
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Executive Assistant Departments
Human Resources Village Clerk � Finance ' General Government I Community
I I , Development
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Refuse & Recycling I IT Building & Zoning �' Planning I
- --- - - -� - --- -- -- I - - - - --- -- - - - II
Police Department Fire Rescue / EMS I Public Works I Leisure Services Utilities
I
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- --- - --- - -- -- - --- -' - --
- - - - -- - - -- -- --
- ���
Code Enforcement � Stormwater Utility ,�
Water Utility System I, System I
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Vll
VILLAGE OF TEQUESTA, FLORIDA
LIST OF PRINCIPAL OFFICIALS
SEPTEMBER 30, 2013
VILLAGE COUNCIL
Abby Brennan Mayor
Vince Arena Vice-Mayor
Frank D'Ambra Councilmember
Steve Okun Councilmember
Thomas Paterno Councilmember
VILLAGE OFFICIALS
Michael R. Couzzo, Jr. Village Manager
Corbett & White, PA Village Attorney
Lori McWilliams, MMC Village Clerk
JoAnn Forsythe, CPA Finance Director
James M. Weinand Fire Chief
Christopher L. Elg Police Chief
NZ Consultants, Inc. Planning and Zoning Director
M.T. Causley, Inc. Building Official
Michael R. Couzzo, Jr. Utilities Director
Greg Corbitt Parks and Recreation Director
Merlene Reid, MS, SPHR Human Resources Director
VILLAGE INDEPENDENT AUDITORS
Marcum LLP
viii
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INDEPENDENT AUDITORS' REPORT
CUM
ACCOUNTANTS ADVISORS
INDEPENDENT AUDITORS' REPORT
To The Honorable Mayor, Vif�aae CoL��cil a��c� ViIlage Mana�er
Village of Tequesta, Floric�� �
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Village of Tequesta, Florida (the Village) as of and for the fiscal year ended September 30, 2013
and the related notes to the financial statements, which collectively comprise the Village's basic
financial statements as listed in the table of contents.
Management's Responsibility foN the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
i
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with audi�ing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in GoveYnment
Auditing Standai�ds, issued by the Comptroller General of the United States. Those standards
- require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditar considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
_ � 1
M�RCUM
M E M B E R
Marcum ur 525 Okeechobee Boulevard Suite 750 West Palm Beach, Florida 33401 Phone 561.653.7300 Fax 561.653.7301 marcumllp.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida as
of September 30, 2013 and the respective changes in financial position and, where applicable,
cash flows thereof for the fiscal year then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1 to the financial statements, the Village implemented Governmental
Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Defer�ed
Outflows of Resources, Deferred Inflows of Resources, and Net Position and GASB Statement
No. 65, Items Previously Reported as Assets and Liabilities as of October 1, 2012. Our opinion is
not modified with respect to this matter.
OtheY Matters
Required Supplementa�y InfoYmation
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis and budgetary comparison information and the schedules
of funding progress and employer contributions on pages 4-16 and 70-74 be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Info�mation
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village's basic financial statements. The combining and individual
fund financial statements and schedules, the introductory and statistical sections are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
2
The combining and individual fund financial statements and schedules are the responsibiliry of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual fund financial statements and schedules are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing StandaYds
In accordance with Government Auditing Standards, we have also issued our report dated March
21, 2014] 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 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 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 Village's internal control over financial reporting and compliance.
°�a�,c��. � �P
West Palm Beach, Florida
March 21, 2014
3
MANAGEMENT'S DISCUSSI�N AND ANALYSIS
(MD&A)
Management's Discussion and Analysis 2013
Village of Tequesta, Florida
Management's Discussion and Analysis
As management of the Village of Tequesta, we offer readers of the Village's financial statement this
narrative overview and analysis of the financial activities of the Village for the fiscal year ended
September 30, 2013. We encourage readers to consider the information presented here in conjunction
with the additional information that we have furnished in the letter of transmittal found on pages i to v of
this report.
Financial Hi�hli�hts
• The assets and deferred outflows of resources of the Village of Tequesta exceeded its liabilities
and deferred inflows of resources at the close of the most recent fiscal year by $33,428,198 (net
position). Of this amount, $8,420,335 (unrestNicted net position) may be used to meet the
ongoing obligations to the citizens and creditors.
• The Village of Tequesta's total net position decreased $857 thousand during the current period.
The decrease is mainly due to a decrease in revenues from charges for services ($578 thousand)
and an increase in expenses ($150 thousand) in transportation due to the hiring of a new position
and an increase in landscape maintenance costs.
• At the close of the current fiscal year, the Village of Tequesta's governmental funds reported
combined fund balances of $3,804,922, a decrease of $530,731 in comparison with the prior year.
Approximately 50%% of this amount ($1.9 million) is available for spending at the government's
discretion (unassigned fund balance).
� At the end of the current fiscal year, unrestricted fund balance (the total of the committed,
assigned, and unassigned components of fund balance) for the general fund was $3,641,163, or
approximately 33% of total general fund expenditures.
• The Village of Tequesta's total outstanding long-term debt decreased by $238 thousand or
approximately (2.5%) during the current fiscal year due to the paying down existing debt and not
incurring any new debt. Please see details in the Notes to Basic Financial Statements, Note 3. K.
starting on page 65.
• The Village did not expend $500,000 or more in Federal andlor State financial assistance in the
fiscal year ended September 30, 2013 and for that reason did not meet the threshold for a single
audit according to the Florida Single Audit Act (section 215.97 F.S.) and OMB Circular A-133.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Village of Tequesta's basic
financial statements. The Village's basic financial statements consist of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also includes supplementary information intended to furnish additional detail to
support the basic financial statements themselves.
4
Management's Discussion and Analysis 2013
Government-wide Financial Statements: The government-wide financial statements are designed to
provide readers with a broad overview of the Village of Tequesta's finances, in a manner similar to a
private-sector business.
The statement of net position presents financial information on all of the Village of Tequesta's assets,
liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Village of Tequesta is improving or deteriorating.
The statement of activities presents information showing how the Village of Tequesta's net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the Village of Tequesta that are
principally supported by taxes and intergovernmental revenues (goveNnrraental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business-type actzvities). The governmental activities of the Village included general
government, public safety, transportation and leisure services. The business-type activities of the Village
included water, stormwater and refuse and recycling.
The government-wide financial statements can be found on pages 17-18 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Village of Tequesta,
like other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the Village of Tequesta can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
GoveYnmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental actzvities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in assessing a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The Village of Tequesta maintains four 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 balance for the General Fund which is considered a major fund. Data
from the other three governmental funds is combined into a single aggregated presentation. Individual
5
Management's Discussion and Analysis 2013
fund data for each of these non-major governmental funds is provided in the form of combining
statements in the combining and individual fund statements and schedules section of this report.
The Village of Tequesta adopts an annual appropriated budget for its governmental funds. A budgetary
comparison statement has been provided for the general fund to demonstrate compliance with this budget.
The Village of Tequesta's governmental fund financial statements can be found on pages 19-21 of this
report.
Proprietary Funds. The Village of Tequesta maintains one type of proprietary fund — enterprise funds.
Enterprise funds are used to report the same functions presented as business-tvpe activities in the
government-wide financial statements. The Village of Tequesta uses enterprise funds to account for its
water, stormwater, and refuse and recycling funds.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for the Water
fund, which is considered to be a major fund. The stormwater and refuse and recycling funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual
fund data for the stormwater and refuse and recycling funds can be found in the form of combining
statements in the combining and individual fund statements and schedules section of this report.
The basic proprietary fund financial statements can be found on pages 22-24 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the Village. Fiduciary funds are not reported in the government-wide financial statement because the
resources of those funds are not available to support the Village's own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
The Village of Tequesta maintains one type of fiduciary fund — the 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 25-26 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 27-69 of this report.
Other information: In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary znformation concerning the Village of Tequesta's progress in
funding its obligation to provide pension benefits and OPEB benefits to its employees. Required
supplementary information can be found on pages 70-74 of this report.
The combining statements referred to earlier in connection with non-major governmental funds, as well
as, non-major enterprise 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 75-84 of this report.
6
Management's Discussion and Analysis 2013
Government-wide Overall Financial Analysis �
As noted earlier, 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 by $ I 3,852,533 at the close of the most recent fiscal year.
Village of Tequesta's Net Position
As seen below, the Village of Tequesta's total assets and deferred outflows exceeded total liabilities and �
deferred inflows by approxiinately $33.4 million at the close of the 2013 fiscal year. Governmental
activities resulted in a 5.6% reduction in total net position while the Village's business-type activities �
resulted in a minor change (-0.14%) in total net position.
��� Current and other assets S 4.87R984 � 5.472,092 S 5_728.854 S�,29�,709 S7Q607.K3R S10.767.R01
Capital assets, net S 13.039J37 S 13.6] 7_847 S 19395.803 S20?21328 532.435.540 S33,839.175 -
.
ota assets �17,918,721 �19.0&9.939 $25,124,657 525,517,037 $43,043,37R �44,606.976
Total deferred outtlows of
resources - - $ 324,834 $347,300" ,� 324,R34 $347,300*
Lon�-term liabilities
outstanding �;,4>i,442 S 3,694,691 $5,71 1,390 $6,010.761 �,9.166.832 S 9.70�,452
Other liabilities $ 447.629 5 483J52 S 162.436 5 249,942 S 610,065 S 733.694
Total liabilities $ 3,903,071 $ 4.178,443 $5,873.826 �6,260,703 59.776,897 $]0,439,146
Total deferred inflows of
resources $ 163,117 $ 229,672* - - $163,117 $ 229,672*
Net position
Net investment in
capital assets 510,261,476 S]O.i91.77R 514,167,067 514.718,841 �24,428,543 S25.310,619 �
Restricted � 579,320 � 579,809 � 579,320 � 579,809
Unrestricted � 3,011,737 $ 3,510,237 $ 5,408,598 � 4,884,793 � 8,420335 $ 8,395,030
Total net position y_I_., fr52,53; � 14 681 82_4 �l_y 575 665 � I 9 6Qi b�i4 �„ 428 198 �4 2$�,458
* Restated to include the effects of deferred inflows and outflows per GASB Statement 65.
The largest portion of the Village's total net position (72.1 %) represents investments in capital assets
(e.g., land, buildings, machinery and equipment), less any related outstanding debt used to acquire those -
assets. The Village uses these capital assets to provide services to citizens; consequently, they are not
available for future spending. Although the Village's investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities
An additional portion of the Village of Tequesta's net position (1.7%) represents resources that are '
subject to external restrictions on how they may be used. The remaining balance of $8,420,335 is
unrestricted and may be used to meet the government's ongoing obligations to its citizens and creditors.
7 �
Management's Discussion and Analysis 2013
At the end of the current fiscal year, the Village of Tequesta is able to report positive balances in all
categories of net position, both for the government as a whole, as well as for its separate governmental
and business-type activities. The same situation held true for the prior fiscal year.
VILLAGE OF TEQUESTA Net Position,
September 30, 2012 and 2013
Unrestricted � R 2012
2013
Restricted
capital assets ,� �
,� - 10,000,000 20,000,000 30,000,000
The Village of Tequesta's overall net position decreased $857,260 from the prior fiscal year. The reasons
for this overall decrease are discussed in the following sections for governmental activities and business-
type activities.
Village of Tequesta's Changes in Net Position
I
�
Revenues:
Program Revenues:
Cl�lrges for Services $ 1,929,223 $2,084,685 $4,824,690 $5,247,543 S 6,753,913 $ 7,332,228 �
Operating Grants &
Contributions 95.]45 60,260 - - 95,145 60,260
Capital Grants &
Contributions - 119,200 - - - 119.200
General Revenues: _ _
Ad valorem 1'axes 4,339.21 i 4,268.732 - - 4,339,21 � 4,268.732
Other Taxes 1,266,929 1,235.941 - - 1,266.929 1,235,941
Franchise fees on gross
receipts 380,160 393J34 - - 380.160 393,734
Unrestricted
intervovernmental 73�.924 718,277 - - 735,924 718,277
Unrestricted investment
earnings 22.3 ] 6 49,173 20,727 30.448 43_043 79,621
Other Miscellaneous 77.390 99,072 37,017 30,S01 1 14,407 129,873
Total Revenue �8 R46 302 9 029 074 $4 8�2 434 � 308 ,792 �1 728 736 �14 337 866
g
Management's Discussion and Analysis 2013
Fxpenses: j
Genaral _*overnment 1,642,94R 1.629,1IS - - 1.64? 94h I,629,1IS
Public safety 6,207,866 6,210,365 - - 6,207,866 6,210,365
Transportation 1,049,062 898,458 - - 1,049,062 898,458
Leisure Services 640,513 G35,110 - - 640,513 635,110
Interest on long-term debt 135,204 146,868 - - 135,204 146,868
Water utility services 4,20�F,955 4,017,097 4,204,955 4,017,097
Stormwaterservices 221,283 207,526 221,283 207,526
Refuse R recyclin� services - - 484,165 468,637 484,165 468.637
Total Expenses 9,675,593 9.519,916 4,910,403 4,693,260 14,585,996 14,213,176
Increase (decrease)in net
position (829,291) (490,842) (27,9G9) 615,532 (857,260) 124,690
Net position - beginning 10/01 $4,681,824 $ I 5.172,666 $19,(iO3,634 $ I 8,988, I 02 `n34,2R5,458 $34,160.768
Net position - ending 9/30 _'`�,852 533 � I 4,(i81,R24 y� I 9 575 665 � 19.603.634 ;'3b 3.428.198 $34,285.458
Governmental Activities — Expenses and Program Revenues
Governmental activities. During the current fiscal year, net position for governmental activities
decreased $829,291 from the prior fiscal year and ended with a balance of $13,852,533. A significant
portion of this decrease is due to the Village's decision to use available fimds to support governmental
activities. The slow recovery from the recent recession has had an impact on the Village and, although
management was able to take various actions (e.g., delaying certain nonrecurring expenses) to mitigate
this impact, the decision was made to use available funds to help neutralize the effect on governmental
activities. The decrease in net position is due to that decision as well as a decrease in revenues (2%) and
an increase in expenses (1.6%) from the prior period. The largest increase in expenses, were in the
transportation function due to charges paid to the FEC (Florida East Coast Railway) to maintain the
crossing on Tequesta Drive.
The Village's programs/functions include General Governinent, 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. The net cost of all governmental activities this year was $7.6 million — an increase of
5.6% from the prior period. As shown on the Statement of Activities, the functions directly benefiting
from the programs generated revenue of $2 inillion towards this cost and the remainder was financed
through general revenues ($6.8 million) and the use of excess funds.
9
Management's Discussion and Analysis 2013
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Ex�e�ses a�c ��ogram Re��enues - Governmenta! ,�ct'�:� tiec
I
The following is a comparative chart of revenues by source for governmental activities for fiscal year
2013 and 2012.
Revenues by Source - Governmental Activities
TnOl:Sd'iG5
4�00
qppp 2013
3��� 2012
3GOu
25pC�
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J
1�
Management's Discussion and Analysis 2013
Business-type Activities. The Village of Tequesta's business-type activities resulted in a decrease of
$27,969 in net position. Charges for services were down $423 thousand from the prior year attributable
to extremely high rainfall during the summer resulting in lower demand for water used in irrigation. The
increase in water rates of 1.45% had little impact on revenues due to the lower demand. The Village of
Tequesta budgeted to appropriate $235 thousand of excess funds to pay for a large maintenance project in
the water plant, which was ongoing at year end. This project significantly contributed to the water utility
expenses increasing 4.7% from the }�rior year.
Total Expenses/Revenues - Business Type Activities
In Thousands
.,.. _�
$4,500 , _ _ ,.
$4,000
$3,500
$3,000
$2,500
$2,000
$1, 500
$1, 000
$500 ��
$-
Water Utility Refuse & Recycling Stormwater Utility
C Revenue -='Expenses
Revenues by Source - Business Type Activities
in Thousands Fv zoi3 & :-: �c_�
S 5, 000 '
54,000 •"
�
53,000
52,000
S 1,000
S .�
Charges for Services
Non-operU�ting
11
Management's Discussion and Analysis 2013
Financial Analvsis of the Villa�e's Funds
As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Covernmental funds: The focus of the Village's governinentul, f'unds 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,f'und 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 use for a particular purpose by either an external party, the
Village of Tequesta itself, or a group or individual that has been delegated authority to assign resources
for use for particular purposes by the Village of Tequesta's Council.
At September 30, 2013 the Village of Tequesta's governmental funds reported combined fund balances of
$3,804,922 a decrease of $530,731 in comparison with the prior year. Approximately 50.5% of this
amount ($1,921,295) constitutes unassigned fund balance, which is available for spending at the Village's
discretion. The remainder of the fund balance is either nonspendable, restf�icted or assigned to indicate
that it is 1) not in spendable form ($332,442), 2) restricted for a particular purpose ($575,287) or assianed
for a particular purpose ($1,000,000). �
Generai Fund
Components of Fund Balance
September 30, 2012 and 2013
Nonspendable. � ,
Restricted � 2012
2013
Assigned ,
I
� I �
� ' '
;
Unassigned ' '
- 500,000 1,000,000 1,500,000 2,000,000 2,500,000
12
Management's Discussion and Analysis 2013
The General Fund is the chief operating fund of the Village of Tequesta. At the end of the current fiscal
year, unassigned fund balance of the General Flind was $1,921,295 while total fund balance was
$3,641,163 (a decrease of 1.5% from the prior period). 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 fimd expenditures.
Unassigned fund balance represents 21 % of fiscal year 2013 General Fund expenditures and total fund
balance represents 47% of the total expenditures. The ratio of total fund balance to expenditures has
decreased fro�n the prior year when total fund balance represented 48% of total expenditures. This is the
fifth year that these ratios have decreased representing a growing gap between revenues and expenditures
as the Village uses excess funds to bridge this gap. The fund balance of the Village of Tequesta's general
fund decreased by $55,339 during the current fiscal year which was significantly less than in prior years,
as the Village shifts away from using existing funds to support activities.
The alnount of General Fund revenue by type, their percent of the total and the amount of change
compared to (ast fiscal year are shown in the following schedule:
General Fund Revenues —bv Source
GENERALFUND
REVENUI�S
Change
� Revenue Sources 2013 % of Tatal � % 2012
Taxes $4,339,215 49.2°io $70,483 1.7% $4,268,732
Othertaxes 1,266,929 14.4% 30,988 2.5% 1,235,941
Intergovernmental 752,728 8.5% (3,064) (0.4°/o) 755,792
Franchise fees 380,160 4.3% (13,574) (3.4%) 393,734
Charges for services 901,659 10.2% (46,736) (4.9%) 948,395
Intragovernmental 503,709 5.7% 546 0.1% 503,163
Licenses and permits 330,569 3.7% (87,133) (20.9%) 417,702
Investment earnings 22,316 0.3% (17,630) (44.1%) 39,946
Fines and forfeitures 17,929 02% (3,605) (16.7%) 21,534
Miscellaneous 159,526 1.8% 81,732 105.1% 77,794
Rents and Royalties 147,303 1.7% 20,333 2.1% 167,636
Total Revenue $8,822,043 100% $ 8,326 0.1% $8,830,369
Total General Fund revenue has declined slightly, however we are beginning to see some improvement in
revenues from taxes. Ad valorem taxes increase 1.7% from the prior period due to an increase in property
values. Income from other taxes has increased 2.5% which may indicate that the economy is improving
as more money is being spent. The decrease in revenue from licenses and permits is indicative of the
cyclical nature of this revenue in a community that is almost completely built out.
13
Management's Discussion and Analysis 2013
EXpenditures in the General Fund'. are shown in the following schedule:
I GENERALFUND
Expenditures by Function
Change
Function 2013 % of Totai � % 2012
Public Safety $5,901,479 63.5% (89) 0.0% $5,901,568
General government 1,528,314 16.4% 58,699 4.0% 1,469,615
Transportation 800,959 8.6°/o 75,126 10.4% 725,833
I Leisure services 561,938 6.0% 9,936 1.8% 552,002
� Debt service 384,733 4.1 % (44,672) (10.4%) 429,405
� Capital outlay 120,399 1.3% 215 290 64.1% 335,689
i
' Total expenditures $9.297.822 1QQ1o. (116•2961 (1.2%1 $9 414 112
General fund expenditures show a small reduction (0.50%) due mainly to a reduction in the purchase of
capital items. Additionally, the Village has not taken on any additional debt which has resulted in the cost
of debt service decreasing. The increase in general government was mainly due to legal fees related to
annexation and personnel. Expenditures in Transportation (Public Works) increased $75,126. This
increase was due to an additional position (increasing expenditures 51 %), an increase in streetli�hts
(22%) and an increase in landscape tnaintenance (27%) from the prior year. �
Ending fund balances for the Capital Projects Fund is $54,313 and the Capital Improvement fund is
$105,413. Fund balances in both funds are assigned for capital projects/improvements. The Capital
Projects Fund and the Capital Improvement Fund receive revenue from capital grants and transfers-in
from other funds.
Proprietary funds: The Village's proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
The table below summarizes the operating income (loss) and the change in net position for each of the
Village's proprietary funds. At the end of the year, total net positions of the proprietary funds were
$19,575,665, decreasing $27,969 (0.14% from the prior period). As noted earlier, the major decrease in
net position in the Water utility resulted from lower than normal water sales due to an unusually high
rainfall during summer months. Other factors concerning the finances of this major fund have already
been addressed in the discussion of the Village's business-type activities.
PROPRIETARY FUNDS
Chan e in Operating Income and Net Position
Operatin Income Loss Chan e in Net Position
2013 2012 2013 2012
Water $ 91,051 $ 650,351 $ (130,639) $ 477,593
Stormwater 102,230 115,667 103,748 117,879
Refuse and Recycling (1,742) 18,755 (1,078) 20,060
Total changes $ 191 539 $ 784.773 27 969) $ 615 532
14
Management's Discussion and Analysis 2013
Ceneral Fund Budgetary Highlights
The difference between the original and final amended General fund budget in totaf for 2013 was an
increase of $71 thousand. This increase was due to additional capital purchases in the function of public
safety (vehicles, machinery & equipment, and computer equipment) and receipt of grant funds.
Capital Assets and Debt Administration
Capital assets: The Village's capital assets for its governmental and business-type activities total
$32,435,540 (net accumulated depreciation) as of September 30, 2013. These assets include land,
construction in progress, buildings, improvements-other-than-buildings, infrastructure and �nachinery and
equipment. During fiscal year ending September 30, 2013, the Village disposed of $2, l 69,020 of fully
depreciated capital assets. These items were mostly obsolete items that were sold at public auction.
Additionaf information on the Village's capital assets can be found in Note 3 D., Capital Assets, starting
on page 46 of this report.
Governmental Business 2013
Capit Assets Activities Activities Total
Land $ 634,017 $ 83,335 $ 717,352
Construction in progress 10,710 10,710
Buildings 8,043,526 979,512 9,023,038
Improvements 2,385,930 58,720 2,444,650
Infrastructure 4,544,085 32,596,833 37,140,918
Machinery and Equipment 3,100,967 1,593,273 4,694,240
Intangibles 201,377 - 201,377
Total capital assets $18,920,612 $35,311,673 $54,232,285
Less accumulated depreciation (5,880,875) (15,915,870) (21,796,745)
Total capital assets, net $13 4�9 737 19.395 803 $�435 544
Long-tern� Debt: At the end of the current fiscal year, the Village had no general obligation bonded debt.
All of the Village's outstanding debt is secured by general revenue sources. The table below summarizes
the Village's debt position. A more detailed explanation can be found in Note 3.K — Long-Term
Liabilities starting on page 65.
Village of Tequesta - Long Term Debt
Governmental Activities Business-type Activities Total
2013 2012 2013 2012 2013 2012
Notes payable $ 2,778,261 $3,026,070 $5,553,570 $ 5,849,787 $8,331,831 $8,875,857
Compensated absences 519,181 510,621 139,820 142,974 659,001 653,595
Net OPEB Obligation 158,000 158,000 18,000 18,000 176,000 176,000
Total Long Term Debt $3,455,442 $3,694,691 $6,011,390 $6,010,761 $9,466,832 $9,705,452
IS
Management's Discussion and Analysis 2013
Economic Factor and Next Year's Budgets and Rates
The following economic factors currently affect the Village of Tequesta and were considered in
developing the 2013-2014 fiscal year budget.
• The Village Council's decision to raise the millage rate from 5.7671 mills to 6.0500 and an
increase in property values will result in an increase in tax revenues. The Village is anticipating
that property values will continue to rise.
� Interest rates remain low as the federal funds rate is expected to be unchanged until
unemployment rate hits 6.5%, which will continue to affect investment earnings.
• Revenues from sales taxes continue to be flat and current trends are not predicting any immediate
change unless consumer confidence increases.
� There is some indication that the housing market and new home construction is beginning to
improve.
• Four year recovery from the "Great Recession" has created economic uncertainty.
• The Village continues to work on the annexation of surrounding properties, however, the Village
was not successful with annexation attempts in fiscal year 2013.
� Headline CPI is expected to be around 2%.
• Economic and job growth isn't expected to gain significant altitude unti12014/2015.
• The Village of Tequesta's water rates increased 133% on October 1, 2013.
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.
16
Page Intentionally Left Blank
BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
SEPTEMBER 30, 2013
Business-
Governmental type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 3,807,641 $ 5,110,037 $ 8,917,678
Investments 182,077 127,130 309,207
Receivables, net 281,369 413,297 694,666
Inventories 38,397 34,951 73,348
Prepaid items 106,184 43,439 149,623
Net pension asset 463,316 463,316
Capital assets not being depreciated 644,727 83,335 728,062
Capital being depreciated, net 12,395,010 19,312,468 31,707,478
Total Assets 17,918,721 25,124,657 43,043,378
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding -- 324,834 324,834
Total deferred outflows of resources -- 324,834 324,834
LIABILITIES
Accounts payable 143,952 109,833 253,785
Accrued liabilities 237,36$ 22,020 259,388
Customer deposits 54,660 30,503 85,163
Due to other governments 11,649 80 11,729
Noncurrent liabilities:
Due within one year 296,226 322,867 619,093
Due in more than one year 3,159,216 5,388,523 8,547,739
Total Liabilities 3,903,071 5,873,826 9,776,897
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 163,117 -- 163,117
Total deferred inflows of resources 163,117 -- 163,117
NET POSITION
Net investment in capital assets 10,261,476 14,167,067 24,428,543
Restricted:
Debt Service 310,300 -- 310,300
Building 214,987 -- 214,987
Law Enforcement 54,033 -- 54,033
Unrestricted 3,011,737 5,408,598 8,420,335
Total Net Position $ 13,852,533 $ 19,575,665 $ 33,428,198
The accompanying notes are an integral part of these financial statements.
17
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Net (Expense) Revenue and
Program Revenues Changes in Net Assets
Charges Operating Primary Government
for Grants and Governmental Business-type Total
Functions/Programs Expenses Services Contributions Activities Activities
Primary government:
Governmental activities:
General government $ 1,642,948 $ 695,801 $ -- $ (947,147) $ -- $ (947,147)
Public safety 6,207,866 1,142,593 84,195 (4,981,078) -- (4,981,078)
Transportation 1,049,062 4,480 -- (1,044,582) -- (1,044,582)
Leisure services 640,513 86,349 10,950 (543,214) -- (543,214)
Interest on long-term debt 135,204 -- -- (135,204 -- (135,204
Total governmental activities 9,675,593 1,929,223 95,145 (7,651,225 -- (7,651,225
Business-type activities
Water 4,204,955 4,018,755 -- -- (186,200) (186,200)
Stormwater utility 221,283 323,513 -- -- 102,230 102,230
Refuse and recycling 484,165 482,422 -- -- (1,743 (1,743
Total business-type activities 4,910,403 4,824,690 -- -- (85,713 (85,713
Total primary government $ 14,585,996 $ 6,753,913 $ 95,145 (7,651,225 (85,713 (7,736,938
General revenues:
Ad valorem taxes 4,339,215 -- 4,339,215
Utility taxes 644,477 -- 644,477
Communication service tax 344,204 -- 344,204
Insurance premium taxes 194,173 -- 194,173
Business taxes 84,075 -- 84,075
Franchise fees based on gross receipts 380,160 -- 380,160
Unrestricted intergovernmental revenues 735,924 -- 735,924
Unrestricted investment earnings 22,316 20,727 43,043
Miscellaneous revenues 77,390 37,017 114,407
Total general revenues 6,821,934 57,744 6,879,678
Change in net posirion (829,291) (27,969) (857,260}
Net position - beginning 14,681,824 19,603,634 34,285,458
Net position - ending $ 13,852,533 $ 19,575,665 $ 33,428,198
The accompanying notes are an i�:tegral part of these financial statements.
1R
,
VILLAGE OF TEQUESTA, FLORIDA
BALANCESAEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
Other Total
General Governmental Governmental
Fund Funds Funds
ASSETS
Cash and cash equivalents $ 3,643,882 $ 1b3,759 $ 3,807,641
Investments 182,077 -- 182,077
Receivables, net 281,369 -- 281,369
Inventories 38,397 -- 38,397
Prepaid items 106,184 -- 106,184
Total assets 4,251,909 163,759 4,415,668
LIABILITIES
Accounts payable 143,952 -- 143,952
Accrued liabilities 237,368 -- 237,368
Due to other governments 11,649 -- 11,649
Other current liabilities 54,660 -- 54,660
Totalliabilities 447,629 -- 447,629
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 163,117 -- 163,117
Total deferred inflows of resources 163,117 -- 163,ll7
FUND BALANCES
Nonspendable:
Inventories 38,397 -- 38,397
Prepaid Items 106,184 -- 106,184
Restricted:
Debt Service 310,300 -- 310,300
Building 214,987 -- 214,487
Law Enforcement 50,000 4,033 54,033
Assigned:
Subsequent year's budget -- 150,000 150,000
Hurricane/disaster emergency 1,000,000 -- 1,000,000
Capital Projects -- 9,726 9,726
Unassigned:
General Fund 1,921,295 -- 1,921,295
Total fund balances 3,641,163 163,759 3,804,922
Total liabilities, deferred inflows of resources and fund balances $ 4,251,909 $ 163,759 4,415,668
Amounts reported for governmental activities in the
statement of net position are different because:
Capital assets used in the governmental activities are not financial resources and,
. therefore, are not reported in the funds. 13,039,737
Net pension assets are not considered to represent a financial asset in the governmental funds 463,316
Long-term liabilities, including notes payable, are no due and payable in the current
period and, therefore, are not reported in the governmental funds (3,455,442)
Net position of governmental activities $ 13,852,533
The accompanying notes are an integral part of these financia! statements.
19
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Total Total
General Nonmaj or Governmental
Fund Funds Funds
REVENUES
Ad valorem taxes $ 4,339,215 $ -- $ 4,339,215
Other taxes 1,266,929 -- 1,266,929
Intergovernmental 752,728 -- 752,728
Franchise fees 380,160 -- 380,160
Charges for services 901,659 -- 901,659
Intragovernmental 503,709 -- 503,709
Grants, contributions and donations 61,185 -- 61,185
Licenses and permits 330,569 -- 330,569
Investment earnings 22,316 -- 22,316
Fines and forfeitures 17,929 24,258 42,187
Miscellaneous 98,341 -- 98,341
Rents and royalties 147,303 -- 147,303
Total revenues 8,822,043 24,258 8,846,301
EXPENDITURES
Current:
General government 1,528,314 -- 1,528,314
Public safety 5,901,479 1,000 5,902,479
Transportation 800,959 78,210 879,169
Leisure services 561,938 -- 561,938
Capital outlay 120,399 -- 120,399
Debt service:
Principal 247,809 -- 247,809
Interest 125,054 -- 125,054
Fiscal Charges 11,870 -- 11,870
Total expenditures 9,297,822 79,210 9,377,032
Excess (deficiency) of revenues
over (under) expenditures (475,779 (54,952 (530,731
OTHER FINANCING SOURCES (USES)
Transfers in 420,440 -- 420,440
Transfers out -- (420,440 (420,440
Total other financing sources (uses) 420,440 (420,440 --
Net change in fund balances (55,339) (475,392) (530,731)
Fund balances- beginning 3,696,502 639,151 4,335,653
Fund balances - ending $ 3,641,163 $ 163,759 $ 3,804,922
The accompanying notes are an integral part of these financial statements.
20
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 T HE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Amounts reported for governmental activities in the statement of activities
(Page 18) are different because:
Net change in fund balances - total governmental funds (Page 20) $(530,731)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets is allocated over their
estimated useftil lives and reported as depreciation expense. This is the
amount by which depreciation exceeds capital outlay in the current period.
' The details of the difference are as follows:
Capital outlay $ 120 399
,
Depreciation expense (731,654
Net Adjustment (611,255)
The net effect of various miscellaneous transactions involving capital assets
(i.e., sale, trade-ins, and donations) is to increase(decrease) net position 33,144
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.
The detail of the difference is as follows:
Principal payments:
Notes payable 247,809
Some expenses reported in the statement of activities do not require the
use of current financial resources and, therefore, are not reported as
expenditures in governmental funds:
The details of the difference are as follows:
Compensated absences (8,560)
Net pension expense 40,302
31,742
Change in net position of governmental activities (Page 18) $(829,291
The accompanying notes are an integral part of these financial statements.
21
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2013
Business-type Activities
Water Nonmajor
Fund Funds Total
ASSETS
Current Assets:
Cash and cash equivalents $ 4,151,180 $ 958,857 $ 5,110,037
Investments 113,987 13,143 127,130
Receivables, net 405,897 7,400 413,297
Inventories 34,404 547 34,951
Prepaid items 42,646 793 43,439
Total current assets 4,748,114 980,740 5,728,854
Non-current Assets:
Capital assets not being depreciated 83,335 -- 83,335
Capital being depreciated, net 17,672,479 1,639,989 19,312,468
Total non-current assets 17,755,814 1,639,989 19,395,803
Total Assets 22,503,928 2,620,729 25,124,657
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 324,834 -- 324,834
Total deferred outflows of resources 324,834 -- 324,834
LIABILITIES
Current Liabilities:
Accounts payable 66,087 43,746 109,833
Accrued liabilities 22,020 -- 22,020
Customer deposits 30,503 -- 30,503
Compensated absences 15,000 -- 15,000
Due to other governments 80 -- 80
Notes payable - current 307,867 -- 307,867
Total current liabilities 441,557 43,746 485,303
Noncurrent liabilities
Compensated absences 123,125 1,695 124,820
Notes payable 5,245,703 -- 5,245,703
Net OPEB obligation 18,000 -- 18,000
Total noncurrent liabilities 5,386,828 1,695 5,388,523
Total Liabilities 5,828,385 45,441 5,873,826
NET POSITION
Net investment in capital assets 12,527,078 1,639,989 14,167,067
Unrestricted 4,473,299 935,299 5,408,598
Total Net Position $ 17,000,377 $ 2,575,288 $ 19,575,665
The accompanying notes are an integral part of these financial state�rcents.
22
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
F OR T HE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Business-type Activities
Water Nonmajor
Fund Funds Total
Operating Revenues
Charges for services:
Metered water sale $ 3,966,832 $ -- $ 3,966,832
Tap fees 51,922 -- 51,922
Stormwater fees -- 323,513 323,513
Refuse & recycling fees -- 482,422 482,422
Total Operating Revenues 4,018,754 805,935 4,824,689
Operating Expenses
Cost of sales and services:
Plant production 1,394,986 -- 1,394,986
Distribution 723,944 -- 723,944
Stormwater -- 109,868 109,868
Purchased services -- 477,314 477,314
Management services 485,229 18,480 503,709
Administration 323,461 -- 323,461
Depreciation 1,000,083 99,785 1,099,868
Total Operating Expenses 3,927,703 705,447 4,633,150
Operating Income 91,051 100,488 191,539
Non-Operating Revenues (Expenses)
Miscellaneous revenue 37,017 -- 37,017
Investment earnings 18,545 2,182 20,727
Interest expense (263,096) -- (263,096)
Other fiscal charges (14,156) -- (14,156)
Total Non-Operating Revenues (Expenses) (221,690) 2,182 (219,508)
Change in Net Position (130,639) 102,670 (27,969)
Net Position - Beginning 17,131,016 2,472,618 19,603,634
Net Position - Ending $ 17,000,377 $ 2,575,288 $ 19,575,665
The accompanying notes are an integral part of these financial statements.
23
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Business-type Activities
Water Nonmajor
Fund Funds Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers, governments and other funds $ 3,966,832 $ 806,881 $ 4,773,713
Cash paid to suppliers (1,561,406) (671,418) (2,232,824)
Cash paid to employees (1,324,123) (52,505) (1,376,628)
Net Cash Provided by Operating Activities 1,081,303 82,958 1,164,261
CASH FLOWS FROM CAPITAL AND RELATED
FINANCIAL ACTIVITIES
Acquisition and construction of capital assets (125,655) (148,687) (274,342)
Principal payments on long-term debt (273,390) -- (273,390)
Interest and fiscal charges paid (229,315) -- (229,315)
Net Cash Used in Capital and Related Financing Activities (628,360) (148,687) (777,047)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 7,487 1,298 8,785
Miscellaneous 37,017 -- 37,017
Net Cash Provided by Investing Activities 44,504 1,298 45,802
Net Increase (Decrease) in Cash and Cash Equivalents 497,447 (64,431) 433,016
Cash and Cash Equivalents - Beginning 3,653,733 1,023,288 4,677,021
Cash and Cash Equivalents - Ending $ 4,151,180 $ 958,857 $ 5,110,037
Adjustments to Reconcile Operating Income to Net
Cash Provided by Operating Activities
Operating income $ 91,051 $ 100,488 $ 191,539
Depreciation 1,000,083 99,785 1,099,868
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 22,480 946 23,426
Inventories 6,458 25 6,483
Prepaid items and other assets (11,856) (420) (12,276)
Increase (decrease)in:
Accounts payable (27,059) (118,426) (145,485)
Accrued liabilities (1,760) -- (1,760)
Customer deposits 5,620 -- 5,620
Compensated absences (3,714) 560 (3,154)
Net Cash Provided by Operating Activities $ 1,081,303 $ 82,958 $ 1,164,261
NONCASH INVESTING ACTIVITIES
Change in fair value of investments $ 7,356 $ 868 $ 8,224
The accompanying notes are an integral part of these financial statements.
24
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2013
Pension
Trust
Funds
ASSETS
Cash and cash equivalents $ 381,875
Investments, at fair value:
Corporate stocks 3,949,689
Corporate bonds 475,506
Government backed securities 290,113
Mutual funds 7,287,800
Total Investments 12,003,108
Prepaid items 300
Contributions receivable 36,583
Accrued interest receivable 20,055
Total Assets 12,441,921
LIABILITIES
Accounts Payable 21,033
Due to Broker 35,129
Total Liabilities 56,162
NET POSITION
Net position held in trust for pension benefits $ 12,385,759
The accompanying notes are an integral paNt of these financial statements.
25
VILLAGE OF TEQUESTA, FLORIDA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Pension
Trust
Funds
ADDITIONS
Contributions:
Employer (including State) $ 852,626
Employee 188,072
Total contributions 1,040,698
Investment earnings:
Net increase in fair value of investments 809,726
Interest earnings 230,602
Gain on sale of investments 169,993
Investment earnings 1,210,321
Less investment expenses (74,713
Net investment earnings 1,135,608
Total additions 2,176,306
DEDUCTIONS
Benefits paid 62,171
Refunds of contributions 50,412
Operating expenses 62,864
Total deductions 175,447
Change in net position 2,000,859
Net position- beginning 10,384,900
Net position - ending $ 12,385,759
The accompanying notes are an integt-al part of these financial statements.
26
NOTES TO BASIC FINANCIAL STATEMENTS
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 (the Village has no component units). All fiduciary
funds are presented separately. Gove�nmental 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 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 rescueBMS, building and
code enforcement), transportation (streets and roads), leisure services (culture and
recreation), water, stormwater, 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. The Village has no
component units to report for the fiscal year ending September 30, 2013.
C. BASIS OFPItESENTATION - 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-
rype activities of the Village. The governmental activities column incorporates data from
governmental funds while business-types 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.
27
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
C. BASIS OFPRESENTATION- GOVERNMENT-WIDEFINANCIAL STATEMENTS �CONTINUEDJ
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 of Tequesta's water, and various other functions of the
government. Elimination of these 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 is 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 OFPRESENTATION-FUND FINANCIAL STATEMENTS
The fund financial statements provide information about the Village's funds, including its
fiduciary funds. Separate statements for each fund category — governmental, proprietary
and fiduciary — are presented. The emphasis of fund financial statements is on major
governmental and enterprise funds, each displayed in a separate column. All remaining
governmental and enterprise funds are aggregated and reported as nonmajor funds. Major
individual governmental and enterprise funds are reported as separate columns in the fund
financial statements.
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.
28
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
D. BASIS OFPRESENTATION- FUND FINANCIAL STATEMENTS (CONTINUED�
The Village reports the following major enterprise fund:
The WateY Fund accounts for the activities of the water utility, which includes the
processing and distribution of potable water to Village residents and some surrounding
communities.
Additionally, the Village reports the following fund type:
The pension trust fund accounts for the activities of the Public Safety Employees'
Pension Trust 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 and
advances to/from other funds. While these balances are reported in fund financial
statements, certain eliminations are made in the preparation of the government-wide
�nancial 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 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 fmancial 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
transfer 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. NfEASUREMENTFOCUSANDBASISOFACCOUNTING
� 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.
29
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
E. MEASUREMENT FOCUS AND BASIS OFACCOUNTING (CONTINUEDJ
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 45 days of the end of the current fiscal period.
Expenditure generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences, and claims and judgments, are recorded only when payment is due.
General capital asset acquisitions are reported as expenditures in governrnental funds.
Issuance of long-term debt and acquisitions under capital leases are reported as other
financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current
fiscal period are all considered to be susceptible to accrual and so have been recognized as
revenues of the current fiscal period. Entitlements are recorded as revenues when all
eligibility requirements are met, including any time requirements, and the amount is
received during the period or within the availability period for this revenue source (within
45 days of year-end). Expenditure-driving 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 45 days of year-end). All other revenue items are considered to be
measurable and available only when cash is received by the Village.
The proprietary and pension trust funds are reported using the economic resources
measurement focus and the accrual basis of accounting for reporting its assets and
liabilities. �
30
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR TAE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
F. BUDGETARYINFORMATION
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 for approval, the budget was adopted on a
fund basis and the legal level of budgetary control is at that level. What this means is
that 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 executor 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 and Cash Equivalents
The Village's cash and cash equivalents are considered to be cash on hand, demand
deposits, and short-term investments with original maturities of three months or less
from the date of acquisition.
2. Investments
Investments for the Village of Tequesta are reported at fair value, except for the position
in the State Board of Administration Investment Pool (SBA). The SBA administers
Florida PRIME and Fund B Surplus Funds Trust Fund (Fund B), both of which are
governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215
of the Florida Statutes.
31
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
G. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION/FUND BALANCE (CONTINUEDJ
2. Investments (continued)
Florida PRIME is not a registrant with the Securities and Exchange Commission (SEC);
however, the Board has adopted operating procedures consistent with the requirements
for a 2a-7-like fund, which permits money market funds to use amortized cost to
maintain a constant net asset value (NAV) of $1 per share. The fair value of the position
in Florida PRIME is equal to the value of the pool shares.
Fund B is accounted for as a fluctuating NAV pool, that is, accounting valuations reflect
estimates of the market value of securities rather than their amortized cost. Due to the
lack of an actively traded market for Fund B securities, the "market value" is an estimate
of current liquidation value that has been determined through a collaborative process
among various pricing experts and sources in the marketplace. As of September 30,
2013 the fair value factor for Fund B was 1.13262284. Fund B is not subject of
participant withdrawal requests. Distributions from Fund B, as determined by the SBA,
are effected by transferring eligible cash or securities to Florida PRIME, consistent with
the pro rata allocation of pool shareholders of record at the creation of Fund B. One
hundred percent of such distributions from Fund B are available as a liquid balance
within Florida PRIME. The investments in Florida PRIME and Fund B are not insured
by FDIC or any other governmental agency.
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.
32
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
G. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION/FUND BALANCE (CONTINUED�
4. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure 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 assets, are defined by the Village as
assets with an initial, individual cost of more than $1,000 and an estimated useful life in
excess of two years. For infrastructure assets the same estimated minimum useful life is
used (in excess of two years), but only those infrastructure 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 of
Tequesta 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, including infrastructure assets, 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 estimated fair value at the date or donation.
Interest incurred during the construction phase of capital assets of enterprise funds is
included as part of the capitalized value of the assets constructed. The amount of interest
capitalized depends on the specific circumstances. There was no new debt issued in
fiscal year ending 9/30/2013 and no interest capitalized.
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 usefizl lives:
Buildings 20 — 40 years
Improvements 20 — 50 years
Infrastructure 20 — 50 years
Machinery and equipment 5-15 years
Intangibles 5 — 20 years
33
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
G. ASSETS, LIABILITIES� DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION/FUND BALANCE �CONTINUED�
5. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred
outflows of resources. This separate financial statement element represents a
consumption of net position that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The Village only
has one item that quali�es for reporting in this category. It is the deferred charge on
refunding reported in the government-wide statement of net position. A deferred charge
on refunding results from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of
the refunded or refunding debt.
In addition to liabilities, the statement of net position reports a separate section for
deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The Village has only one type of item, that qualifies for reporting in this category.
The item, unavailable revenue, includes revenue from two sources: local business taxes
($44,157) and lease revenues ($118,960). These amounts are deferred and recognized as
an inflow of resources in the period that the amounts become available.
6. Net Position Flow Assumption
Sometimes the Village will fund outlays for a particular purpose from both restricted and
unrestricted (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.
34
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
G. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION/FUND BALANCE (CONTINUED�
7. Fund Balance Flow Assumptions
Sometimes the Village will fund outlays for a particular purpose from both restricted and
unrestricted resources (the total of committed, assigned, and unassigned fund balance).
In order to calculate the amounts to report as restricted, committed, assigned and
unassigned fund balance in the governmental fund financial statements a flow
assumption must be made about the order in which the resources are considered to be
applied. It is the Village's policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance, Further, when
the components of unrestricted fund balance can be used for the same purpose,
committed fund balance is depleted first, followed by assigned fund balance. Unassigned
fund balance is applied last.
8. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the
nature of any limitations requiring the use of resources for specific purposes. The
Village itself can establish limitations on the use of resources through either a
commitment (committed fund balance) or an assignment (assigned fund balance).
The committed fund balance classification includes amounts that can be used only for
the 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 of Tequesta that can, by adoption of an ordinance or resolution,
which are of equal decision-making authority, prior to the end of the fiscal year, commit
fund balance. Once adopted, the limitation imposed by the ordinance or resolution
remains in place until a similar action is taken (the adoption of another ordinance or
resolution) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the
Village for specific purposes but do not meet the criteria to be classified as committed.
The Village Council (Council) has, by adopting a fund balance policy, authorized the
Village Manager and/or the finance director to assign fund balance. The Council may
also assign fund balance as it does when appropriating fund balance to cover a gap
between estimated revenue and appropriations in the subsequent year's appropriated
budget. Unlike commitments, assignments generally only exist temporarily. In other
words, an additional action does not normally have to be taken for the removal of an
assignment. Conversely, as discussed above, an additional action is essential to either
remove or revise a commitment.
35
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
H. REVENUES AND EXPENDITURES/EXPENSES
1. Program Revenues
Amounts reported as prog�am revenues include 1) charges to customers or applicants
who purchase, use, or directly benefit from goods, services, or privileges provided by a
given function or segment and 2) grants and contributions (including special
assessments) that are restricted to meeting the operational or capital requirements of a
particular function or segment. All taxes, including those dedicated for specific
purposes, and other internally dedicated resources are reported as general revenues
rather than as program revenues.
2. Property Taxes
Property tax collections are governed by Chapter 197, Florida Statutes. Property taxes
are based on assessed property value at January l as determined by the Palm Beach
County Property Appraiser. The Village of Tequesta sets the property tax millage rate in
September. The Palm Beach County Tax Collector bills and collects all property taxes
levied within the County. Florida Statutes limit the countywide millage rate to a
maximum of 10 mills, excluding voter-approved debt service millage rates. The millage
rate for the Village in FY 2013 was 5.7671 mills. Tax bills are mailed out November 1 st
and discounts are available for payment made in the following months; November 4%,
December 3%, January 2% and February 1%. Taxes become delinquent on April 1, and
are then subj ect of fines. The Tax collector advertises and sells tax certificates on all
real property for delinquent taxes. 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.
36
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED�
H. REVENUES AND EXPENDITURES/EXPENSES
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
enterprise funds and internal service funds include the cost of sales and services,
administrative expenses and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as non-operating revenues and expenses.
I. USE OFESTIMATES
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 liabilities
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.
37
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 OFNET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance —
total gove�nmental 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
$13,039,737 and details are as follows:
Land $ 634,017
Construction in progress 10,710
Buildings 8,043,526
Less: accumulated depreciation — buildings (1,921,917)
Improvement other than buildings 2,385,929
Less: accumulated depreciation (906,035)
Machinery, equipment and vehicles 3,100,967
Less: accumulated depreciation — machinery
equipment and vehicles (2,569,489)
Infrastructure 4,544,085
Less: accumulated depreciation — infrastructure (399,819)
Intangibles 201,377
Less: accumulated depreciation — intangibles (83,614)
Net Adjustment to Increase Fund Balance -
Total Governmental Funds to Arrive at
Net Position — Governmental Activities 13.039.737
The final 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 $3,455,442 difference are as follows:
Note payable $2,778,261
Compensated absences 519,181
Other post-employment related liability 158,000
Net Adjustment to Reduce Fund Balance -
Total Governmental Funds to Arrive at
Net Position — Governmental Activities 3 455 442
38
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS
A. CASHDEPOSITS WITHFINANCIAL INSTITUTION
Custodial c�edit risk-deposits. In the case of deposits, this is the risk that in the event of a
bank failure, the government's deposits may not be returned to it. All of the Village's
deposits are held in qualified public depositories pursuant to State of Florida Statutes,
Chapter 280, Florida Secu�ity foN 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, 2013, none of the Village's primary bank balances were exposed to custodial
credit risk.
B. INVESTMENTS
The Village has adopted an investment policy in accordance with Florida Statutes and is
authorized to invest in obligations of the U. S. Treasury, its agencies and instrumentalities,
certificates of deposit, the State Board of Administration Investment Pool, any
intergovernmental investment pools authorized pursuant to Chapter 163 of the Florida
Statutes, SEC registered money market funds with the highest credit quality rating from a
nationally recognized rating agency, and securities of any interest in any open-end or closed-
end management type investment company or investment trust registered under the
Investment Company Act of 1940, provided that the portfolio is limited to obligations of U.S.
government, its agencies and instrumentalities and to repurchase agreements fully
collateralized by such U.S. government obligations and provided that such investment
company or investment trust takes delivery of such collateral either directly or through an
authorized custodian.
The State Board of Administration (SBA) administers the Florida PRIME and the Fund B
Surplus Funds Trust Fund (Fund B), which are governed by Chapter 19-7 of the Florida
Administrative Code and Chapters 218 and 215 of the Florida Statutes. The Florida PRIME is
not a registrant with the Securities and Exchange Commission (SEC); however, the Board has
adopted operating procedures consistent with the requirements for a 2a-7-like fund, which
permits money market funds to use amortized cost to maintain a constant net asset value
(NAV) of $1 per share. As a participant, the Village invests in a pool of investments owning a
share of the pool, not the underlying securities. The fair value of the position in the Florida
PRIME is equal to the value of the pool shares.
39
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
B. INVESTMENTS (CONTINUED�
The Fund B does not meet the requirements of an SEC 2a-71ike fund and is accounted for as
a fluctuating NAV pool. That is, accounting valuations reflect estimates of the market value
of securities rather than their amortized cost. Due to the lack of an actively traded market for
Fund B securities, the "market value" is an estimate of current liquidation value that has been
determined through a collaborative process among various pricing experts and sources in the
marketplace. As of September 30, 2013, the fair value factor for Fund B was 1.13262284.
Fund B is not subject to participant withdrawal requests. Distributions from Fund B, as
determined by the SBA, are effected by transferring eligible cash or securities to the Florida
PRIME, consistent with the pro rata allocation of pool shareholders of record at the creation
of Fund B. One hundred percent of such distributions from Fund B are available as a liquid
balance within the Florida PRIME. The investments in the Florida PRIME and Fund B are
not insured by FDIC or any other governmental agency.
As of September 30, 2013, the Village of Tequesta had the following demand deposits and
investments:
Weighted
Average Credit Percent
Deposits and Investrnents Fair Value Maturity Rating Dismbution
Demand deposits $ 8,915,928 96.7%
SBA-Florida PRIME 216,534 44 days AAAm 2.3%
SBA - Fund B 92,673 4.04 years N/A 1.0%
Total Investments 309,207
Total Deposits and Investments $ 9,225,135 100%
Interest Rate Risk
The Village manages its exposure to declines in fair values by limiting the weighted
average maturity of its investments portfolio to less than five years. As shown above, the
weighted average life of Fund B is 4.04 years, however, because Fund B consists of
restructured or defaulted securities there is considerable uncertainty regarding the weighted
average life.
Credit Risk
This is the risk that a debt issuer will not fulfill its obligations. The Village limits credit risk
by requiring investments be limited to specific securities and short-term obligations of U.S.
corporation that are rated at one of the three highest classifications as established by a
nationally recognized statistical rating organization. However Fund B is not rated by any
nationally recognized statistical rating agency.
40
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
B. INVESTMENTS (CONTINUEDJ
Concentration of Credit Risk
At this time the Village is invested in the SBA investment pool which represents 3% of
total deposits and investments.
Custodial Credit Risk-Investments
Is the risk that, in the event of the failure of the counterparty, the government will not be
able to recover the value of its investments or collateral securities that are in the possession
of an outside party. At this time, the Village is only invested in the State Board of
Administration of Florida (SBA) investment pool.
Investments — Public Safety Pension Trust Fund
As of September 30, 2013, the Village of Tequesta's Public Sa�tv Pension Trust Fund had
the following demand deposits and investments:
Percent
Fair Value Distnbution
Cash $ 32,934 0.34%
Short-Terminvestments 288,507 3.01%
Mutttal Funds - Equities 3,553,911 37.03%
MutualFunds - F�ed 'mcome 3,407,140 35.50%
Corporate Stocks 2,274,900 23.70%
ETF - Exchange Traded Fund 39,675 0.41 %
Total $ 9,597,067 100.00
Interest Rate Risk
Is 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, 2013, there were no direct investments in debt instruments.
However, there were investments in mutual funds that included debt instruments in
their portfolio.
41
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
B. INVESTMENTS (CONTINUED�
Investments — Public Safety Pension Trust Fund (continued)
Credit Risk
Is 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 A1 or
Moody's P 1.
Concentration of Credit Risk
Is 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 exceed
70% of the fund assets at maxket value). Mortgage-backed securities issued by non-
government entities are limited to 15% of the fixed income portfolio.
• Limiting investments in foreign securities (not exceed 15% of the value at cost of the
fund).
Custodial Credit Risk-Investments
Is the risk that, in the event of the failure of the counterparty, the government will not be able �
to recover the value of its investments or collateral securities that are in the possession of an
outside pariy. 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.
At September 30, 2013, the investments of the Police and Firefighters' Pension Trust Fund
were in compliance with the investment policy.
42
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
B, INVESTMENTS �CONTINUED�
Investments — General Employees' Pension Trust Fund
At September 30, 2013, the Village of Tequesta's General Emplovees' Pension Trust Fund
had the following demand deposits and investments:
Weighted
Average Credit Percent
Fair Value Mat��rity Rating Distnbution
Cash $ 53 0.00%
Short Term Investrnents 60,382 2.17%
Corporate Bonds: 1.73 years
Bonds 30,340 A1 1.09%
Bonds 77,711 A2 2.79%
Bonds 51,252 A3 1.84%
Bonds 28,454 Aa3 1.02%
Bonds 39,675 Bal 1.42%
Bonds 79,519 Baal 2.85%
Bonds 58,445 Baa2 2.10%
Bonds 110,109 Baa3 3.95%
ETF - Exchange Traded Fund 307,168 0.93 year Aaa 11.02%
U. S. Agencies/Treasuries 290,113 Aaa 10.41 %
Corporate Stocks 1,654,694 59.35
Total $ 2,787,915 100.00
Interest Rate Risk
Is 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, 2013, the weighted average maturity in years for each investment
type is included in the preceding table and ranges from 0.93 to 1.73.
43
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
B. INVESTMENTS (CONTINUED�
Investments — General Employees' Pension Trust Fund (continued)
Credit Risk
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:
• Fixed income investments holding a rating in one of the four highest classifications by
a major rating service.
• Equities that are traded on a National Exchange.
Concentration of Credit Risk
The Plan's investment policy limits exposure to this risk 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 exceed 10% of the
total fiund.
• Limiting investments in corporate common stock and convertible bonds not exceed
70% of the fund assets at market value.
• Limiting investments in foreign securities not exceed 25% of the market value of the
fund.
Custodial Credit Risk
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, 2013, 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.
44
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
B. INVESTMENTS �CONTINUEDJ
Investments — General Employees' Pension Trust Fund (continued)
Foreign Currency Risk
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 market value of the fund
securities to be invested in foreign securities.
• At September 30, 2013, 4.2% of the market value of the fund was invested in foreign
securities.
At September 30, 2013, the investments of the General Employees' Pension Trust Fund were
in compliance with the investment policy.
* See Note F. Pension obligations, for additional information on the Village's pension
plans.
C. RECEI i�ABLES
Below is the detail of receivables for the general, water, and nonmajor funds including the
applicable allowances for uncollectible accounts:
Nonmajor
General Water Funds Total
Accounts $150,504 $ 408,241 $ 2,112 $ 560,857
Intergovernmental 99,431 535 5,288 105,254
Other taxes 48,714 -- -- 48,714
Gross receivables 298,649 408,776 7,400 714,825
Less: allowance for
uncollect�bles (17,280) (2,879) -- (20,159)
Net Total Receivables $281,369 $ 405,897 $ 7,400 $ 694,666
45
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
D. CAPITAL ASSETS
Capital assets activity for the year ended September 30, 2013, was as follows:
Beguuinig Endmg
Balance Additions Deductions Balance
Governmental Activities
Capital assets not bemg depreciated:
Land $ 634,017 $ -- $ -- $ 634,017
Construction-in-progress -- 10,710 -- 10,710
Total Capital Assets Not Being Depreciated 634,017 10,710 -- 644,727
Capital assets bemg depreciated:
Build'uigs 8,043,522 4 -- 8,043,526
Improvements other than buildings 2,509,255 (3) (123,322) 2,385,930
Infrastructure 4,544,085 -- -- 4,544,085
Machinery and equi�ment 4,714,039 109,689 (1,722,761) (1) 3,100,967
Intangibles 168,233 33,144 (1) -- 201,377
Total Capital Assets Being Depreciated 19,979,134 142,834 (1,846,083 18,275,885
Less accumulated depreciation for:
Buildings (1,720,829) (201,089) -- (1,921,918)
Improvements other than build'nigs (915,645) (113,712) 123,322 (906,035)
Infrastructure (292,224) (107,595) -- (399,819)
Machmery and equ�ment (4,049,783) (242,467) 1,722,761 (1) (2,569,489)
Intangbles (16,823 (66,791 -- (83,614
Total Accumulated Depreciation (6,995,304 (731,654 1,846,083 (5,880,875
Total Capital Assets Being Depreciated, Net 12,983,830 (588,820) -- 12,395,010
Governmental AcHvities Capital Assets, Net $ 13,617,847 $(578,110 $ -- $ 13,039,737
(1) $33,144 was reclassified for fully depreciated network software from machinery and
equipment to intangibles.
Depreciation expense was charged to the functions/programs of the governmental activities
of the primary Village as follows:
Governmental Activities:
General goverr�rr�ent $ 155,987
Public safety 328,200
Transportation 168,892
Leisure services 78,575
Total Depreciation Expense - Governmental Activities $ 731,654
46
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
D. CAPITAL ASSETS (CONTINUED�
Beginnnig Ending
Balance Additions Deductions Balance
Business-Type Activities
Capital assets not bemg depreciated:
Land $ 83,335 $ -- $ -- $ 83,335
Construction-in-progress 531,008 -- (531,008 --
Total Capital Assets Not Being Depreciated 614,343 -- (531,008 83,335
Capital assets being depreciated:
B��gs 979,512 -- -- 979,512
Improvements other than buildmgs 58,720 -- -- 58,720
Infrastructure 32,249,590 347,243 -- 32,596,833
Machinery and equipment 1,458,100 458,110 (322,937 1,593,273
Total capital assets being depreciated 34,745,922 805,353 (322,937 35,228,338
Less accumulated depreciation for:
Buildings (589,867) (20,428) -- (610,295)
Improvements other than build'mgs (12,919) (2,348) -- (15,267)
Infrastructure (13,416,574) (969,491) -- (14,386,065)
Machinery and equipment (1,119,577) (107,601) 322,935 (904,243)
Total Accumulated Depreciation (15,138,937) (1,099,868 322,935
) (15,915,870
Total Capital Assets Being Depreciated, Net 19,606,985 (294,515 (2 ) 19,312,468
Business-Type Activities Capital Assets, Net $ 20,221,328 $(294,515 $ (531,010 $ 19,395,803
E. ACCRUED LIABILITIES
Accrued liabilities reported by governmental funds at September 30, 2013, were as follows:
Total
General Governmental
Fund Funds
Salary and employee benefits $ 174,842 $ 174,842
Other 62,526 62,526
Total Accrued Liabilities $ 237,368 $ 237,368
47
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS
Florida Retirement System - a Statewide Local Government Employees' Retirement
System (SLGERS)
Plan Description. Full time employees hired before January 1, 1996 are eligible to
participate in the Florida Retirement System (FRS), a cost sharing, multiple-employer,
public retirement system controlled by the State Legislature and administered by the State
of Florida Department of Administration, Division of Retirement. The FRS provides
retirement and disability benefits, annual cost of living adjustments and death benefits to
plan members and beneficiaries. A post-employment health insurance subsidy is also
provided to eligible employees. Benefits are established by Chapter 121, Florida Statutes
and Chapter 22B, Florida Administrative Code. Amendments to the law can only be made
by an act of the Florida Legislature.
The State of Florida issues a publicly available financial report that includes financial
statements and required supplementary information for the FRS. The latest available report
was for the fiscal year ended June 30, 2013. That report may be obtained by writing to the
State of Florida Division of Retirement, Department of Management Services, P.O. Box
9000, Tallahassee, Florida 32315-9000 or visiting the website at http://dms.myflorida.com.
Funding Policy. Contribution requirements of employers and employees and the
amendment of those requirements are governed by Florida statutes. Plan members, with the
exception of DROP participants, contribute 3% of their annual covered salary. Employer
contribution rates are actuarially determined based upon membership tier and plan
provisions. Contribution rates are established by State law and are expressed as a
percentage of covered payroll. The employer contribution rates by job class for the
Village's employees at September 30, 2013 were as follows: regular employees — 5.44%,
special risk employees — 14.9% and employees participating in the Deferred Retirement
Option Program (DROP) — 1.11 %. The regular and special risk employees' rates include
1.11% for the employer Health Insurance Subsidy contribution and 0.03% for an
administrative fee. The DROP rate includes the 1.11% Health Insurance Subsidy
contribution but the 0.03% administrative fee does not apply to DROP participants.
The Village's contributions to the FRS for the fiscal years ended September 30, 2011, 2012
and 2013 were $131,421, $ 67,295 and $69,032, respectively, which were equal to 100
percent of the required contributions for each fiscal year.
48
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS �CONTINUED�
The Village of Tequesta Single Employer Defined Benefit Pension Plans
Plan Description. The Village maintains two single employer defined benefit pension
plans, the Public Safety Officers' Pension Trust Fund and the General Employees' Pension
Trust Fund (GPTF). The Public Safety Officers' Plan receives contributions that may not
be used to pay benefits of all employee classes, therefore, two separate pension trust funds,
the Firefighters' Pension Trust Fund (FPTF) and the Police Officers' Pension Trust Fund
(PPTF) are reflected in the financial statements. The General Employee's Plan is also
reflected as a separate pension trust fund in the financial statements.
Effective February 1, 2013, the PPTF is not available to new employees. Police officers,
who begin work with the Village after February 1, 2013 will be able to participate in a
defined contribution plan (see note below).
Summary of Significant Accounting Policies — Basis of Accounting and Valuation of
Investments. The pension trust funds are reported on the accrual basis of accounting. Plan
member and state contributions are recognized as revenues in the period that the
contributions are due. Employer contributions to each Plan are recognized when due and
the employer has made a formal commitment to provide the contributions. Benefits and
refunds are recognized when due and payable in accordance with the terms of the plan. All
plan investments are reported at fair value at the last reported sales price on the last
business day of the fiscal year; securities traded in the over-the-counter market and listed
securities for which no sales was reported on that date are valued at the last reported bid
price. Securities without an established market value are reported at estimated fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Funding Policies are presented below under each of the plans.
Current Membership in each of the three Plans consisted of the following at September 30,
2013:
FPTF PPTF GPTF
Covered Group
Active members 16 9 33
Vested terminated members 1 2 2
Service & Disability Retirees and Beneficiaries 2 -- 1
Total 19 11 36
49
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUEDJ
Annual Pension Cost (APC) and Net Pension Asset (NPA)
The Village's current contributions were determined through actuarial valuations performed
as of October 1, 2012. Significant actuarial assumptions as of the latest actuarial valuations
are as follows:
Public Safety Officers' Pension Fund
Pofice General Employees'
Firefighters' Officers' Pension Fund
Vahaation date 10/1/2012 10/1/2012 10/1/2012
Actuarial cost method Individual Entry-Age Individual Entry Age Aggregate
Amortized method Closed, level dollar Closed, level dollar Closed, level dollar
Remainmg amorti�ation period 20 20 N/A
Asset valuation method Five year smoothing Five year smoothing Five year smoothing
Act�iarial assumptions:
Investrnent rate ofreturr�* 7.5% 7.5% 7.5%
Projected salary increase* 6.0% 6.0% 6.0%
*Includes inflation at 3.0% 3.0% 3.5%
Cost ofliving adjustments N/A N/A N/A
The aggregate actuarial cost method was used to determine the annual required contribution
of the employer for the General Employees' Pension Fund for the 2013 fiscal year. This
allocation is performed for the group as a whole, not as a sum of individual allocations. The
portion of this Actuarial Present Value allocated to a specific year is called the employer
Normal Cost. Under this method, actuarial gains and losses, plan amendments, and changes
in actuarial assumptions and methods reduce or increase future Normal Costs.
The Village's 2013 annual pension cost and net pension asset for each Plan are shown below.
Police General
Firefighters' Officers' Employees'
Annual required contr�bution (ARC) $ 378,155 $ 145,147 $ 182,294
Interest on net pension asset (NPA) (10,700) (9,935) (11,091)
Adjusm�ent to ARC (15,550 (14,931 (17,384
Annual pension cost 383,005 150,143 188,587
Contnbutions made 410,144 169,599 182,294
(Increase) decrease m NPA (27,139) (19,456) 6,293
Net Pension Asset - Begnuling (142,665 (132,471 (147,878
Net Pension Asset - End'mg $ (169,804 $ (151,927 $ (141,585
50
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSIONOBLIGATIONS(CONTINUEDJ
Annual Pension Cost (APC) and Net Pension Asset (NPA) (continued)
The Village of Tequesta's APC, percentage of APC contributed and NPA for the pension
plans, for the current year and each of the two preceding years were as follows:
Three-Year Trend Information
Annual Percentage Net Pension
Pension ofAPC Obligation
Fiscal Year Ending Cost (APC) Contnbuted (Asset)
Firefighters' Retirement System
September30,2011 $ 327,608 98.6% $(146,722)
September 30, 2012 409,961 99.0% (142,665)
September 30, 2013 383,005 107.1% (169,804)
Police Officers' Retirement System
September 30, 2011 140,718 96.7% (137,488)
September 30, 2012 208,681 97.6% (132,471)
September30,2013 150,143 113.0% (151,927)
General Employees' Retirement System
September 30, 2011 170,346 96.6% (148,426)
September 30, 2012 175,447 97.6% (147,878)
September 30, 2013 188,587 96.7% (141,585)
Funded Status and Funding Progress
The funded status of the Plans as of October l, 2012, the most recent actuarial valuation
date, is as follows:
a���i
Accrued UAAL as
Actuarial Liability Unfunded a% of
Value (AAL) - AAL Funded Covered Covered
Assets Entry Age (UAAL) Ratio Pa oll Payroll
(a) (b) (b) - (a) (a) / (b) ( c) ((b - a) / c)
Pubfic Safety Pension Fund:
Fire $ 5,291,259 $ 6,708,023 $ 1,416,764 78.9% $ 1,427,247 993%
Police 2,079,888 1,887,237 (192,651) 110.2% 744,314 -25.9%
General Employees' Pension Fund* 2,287,726 2,306,175 18,449 99.2% 1,994,337 0.9%
*Far purposes of this schedule, the AAL for the General Employees' Plan was determined
using the entry age actuarial cost method. Note that the ARC for the Plan was calculated
using the aggregate actuarial cost method.
51
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUEDJ
Annual Pension Cost (APC) and Net Pension Asset (NPA) (continued)
The schedule of funding progress, presented as required supplementary information (RSI)
following the notes to the financial statements, presents multiyear trend information about
whether the actuarial values of the plan assets are increasing or decreasing over time
relative to the AALs for benefits
Village of Tequesta Public Safety Employees' Pension Plan (PSEPP)
PSEPP Plan Description: The PSEPP is administered by a five-member Board of Trustees
and covers all Village police officers and firefighters hired after 1996 (prior to 1996, the
Village participated in the Florida Retirement system). The Plan is also governed by
Chapters 112, 175 and 185 Florida Statutes. As of February 1, 2013 the PPTF portion of
the Public Safety Officers' Trust Fund was closed to new hires. As a result, no state
contributions from Florida Statutes Chapter 185 will be received as a contribution to the
PPTF portion of the Public Safety Officers' Trust Fund after calendar year 2013.
Any firefighter or police officer who completes six or more years of credited service and
attains age 55, or completes 25 years of credited service and attains age 52, is eligible for
normal retirement benefits. The monthly retirement benefit shall be equal to 3% for the
first six (6) years of service, 3.5% for the next four (4) years of service, 4% for the next five
(5) years of service, 3% for the next six (6) years of service, 2% for the next four (4) years
of service and 3% for all years after twenty-five years of service. Early retirement may be
taken after a firefighter or police office attained the age of 50 and has six (6) years of
credited service. In the event of early retirement, benefits are actuarially reduced to take
into account the firefighter or police officer's younger age and earlier commencement of
retirement benefits.
Such reduction shall not exceed 3% per year. Disability benefits can be received for total
and permanent disabilities as determined by the Board of Trustees. If the pension is
granted, the benefit amount shall be as follows
If the injury or disease is service connected, the firefighter or police officer shall be entitled
to the greater of (a) or (b):
(a) A monthly pension equal to 42% of his/her average monthly compensation as of
his/her disability retirement date, or
(b) The accrued normal retirement benefit.
52
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUEDJ
Village of Tequesta Public Safety Employees' Pension Plan (PSEPP) (continued)
If the injury or disease is not service connected, the firefighter or police officer shall be
entitled to the greater of (a) or (b):
(a) A monthly pension equal to 25% of his/her average monthly compensation as of
his/her disability retirement date, or
(b) The accrued normal retirement benefit.
If the firefghter or police officer dies prior to retirement from the Village, his beneficiary
shall receive the following benefit:
(a) Line-of-Duty-Death-Benefit — a pension to the spouse (or children) of 50% of Average
Final Compensation for life.
(b) Non-Line-of- Duty-Death — the spouse of a member with six years of credited service
will receive the actuarial equivalent of the accrued early or normal retirement benefit.
If the firefighter or police officer dies or terminates employment with less than six years of
credited service, he/she is entitled to a refund of the money he contributed.
All retirees and benefic�aries receiving pension benefits will be paid a monthly
supplemental benefit equal to $20 per month 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.
Funding Policy. The contribution requirements of plan members and the Village are
established and may be amended by the Village Council. Plan members are required to
contribute 5% of their annual covered salary. The Village is required to contribute at an
actuarially determined rate.
r The current employer contribution rate for fiscal year ending September 30, 2013 is 19.97%
for police officers and 25.91 % for firef ghters. Additionally, pursuant to Chapters 175 and
185 of the Florida Statutes, premium taxes on certain property and casualty insurance
contracts written on Village properties is collected by the State and remitted to the Plan.
The amount of insurance premium taxes collected and remitted to the plan totaled $184,580
for fiscal year ending September 30, 2013.
53
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
Village of Tequesta Public Safety Employees' Pension Plan (PSEPP) (continued)
The FiYefighters' 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 year ended September
30, 2013.
FIREFIG�ITERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2013
Assets
Cash and cash equivalents $ 227,897
Investments 6,577,414
Contnbutions receivable 26,889
Interest receivable 8,222
Total Assets 6,840,422
Liabilities
Accounts payable 6,377
Due to Broker 23,142
Total Liabilities 29,519
Net Position Held in Trust for Pension Benefits $ 6,810,903
54
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
Village of Tequesta Public Safety Employees' Pension Plan (PSEPP) (continued)
FIREFIGHTERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
ADDITIONS
Contnbutions $ 518,133
Investment mcome 627,648
Total Additions 1,145,781
DEDUCTIONS
Refunds of contnbutions 53,637
Operating e�enses 19,035
Total Deductions �2�(,�2
Net Increase 1,073,109
Net Position Held in Trust for Pension Benefits
Net Position - Beginning 5 737 794
� ,
Net Position - Ending $ 6,810,903
55
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
Village of Tequesta Public Safety Employees' Pension Plan (PSEPP) (continued)
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 year
ended September 30, 2013.
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPTEMBER 30, 2013
Assets
Cash and cash equivalents $ 93,544
Investrnents 2,698,213
Contributions receivable 3,019
Interest receivable 3,022
Total Assets 2,797,798
Liabilities
Accounts payable 5,551
Due to Broker 9,493
Total Liabilities 15,044
Net Position Held in Trust for Pension Benefits $ 2,782,754
56
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTNITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
TTillage of Tequesta Public Safety Employees' Pension Plan (PSEPP) (continued)
POLICE OFFICERS' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
ADDITIONS
Contnbutions $ 243,100
Investment income 243,887
Total Additions 486,987
DEDUCTIONS
Refunds of contnbutions 15,737
Operatmg e�enses 19,008
Total Deductions 34,745
Net Increase 452,242
Net Position Held in Trust for Pension Benefits
Net Position - Begulning 2,330,512
Net Position - Ending $ 2,782,754
Village of Tequesta General Employees' Pension Plan (GEPP)
Plan DescYiption
The General Employees' Pension Trust Fund is a single employer defined benefit plan
administered by a five member Board of Trustees that covers all Village general employees
hired after 1996 (prior to 1996, the Village participated in the Florida Retirement System).
Any general employee who attains age 62, or completes 30 years of credited service
regardless of age, is eligible for normal retirement benefits. The monthly amount of normal
retirement income for a general employee is equal to the number of years of credited
service multiplied by 2% of his average highest compensation. Early retirement may be
taken after a general employee has attained the age of 50 and has six (6) years of credited
service. In the event of early retirement, benefits are actuarially reduced to take into
account the general employee younger age and earlier commencement of retirement
57
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
Village of Tequesta General Employees' Pension Plan (GEPP) (continued)
Plan Description (continued)
benefits. Such reduction shall not exceed 5% per year. Disability benefits can be received
for total and permanent disabilities as determined by the Board of Trustees. If the pension
is granted, the benefit amount shall be as follows:
If the injury or disease is service connected, the general employee shall be entitled to the
greater of (a) ar (b):
(a) A monthly pension equal to 42% of his/her average monthly compensation as of his
disability retirement date, or
(b) An amount equal to the number of years of his/her credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the injury or disease is not service connected, the general employee shall be entitled to
the greater of (a) or (b):
(a) A monthly pension equal to 25% of his/her average monthly compensation based on his
final five (5) years of service, or
(b) An amount equal to the number of years of his/her credited service multiplied by 2% of
his average monthly salary based upon his final five years of service.
If the general employee dies prior to retirement from the Village, the beneficiary shall
receive an amount equal to the vested pension benefit. A survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age.
If the general employee dies or terminates employment with less than six years of credited
service, he is entitled to a refund of the money contributed.
Funding Policy
Contribution requirements of Plan members and the Village are established, and may be
amended only by the Village Council. General employees are required to contribute 5% of
their compensation to the Plan. Employer contributions for the fiscal year ending
September 30, 2013 determined using the actuarial valuation dated October 1, 2012 were
9.09% of covered payroll. The Village is required to contribute the remaining amount
necessary to finance the benefits based on an actuarially determined amount.
58
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED)
Village of Tequesta General Employees' Pension Plan (GEPP) (continued)
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 year ended September 30, 2013.
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF FIDUCIARY NET POSITION
SEPT'EMBER 30, 2013
Assets
Cash and cash equivalents $ 60,434
Investments 2,727,481
Contnbutions receivable 6,675
Interest receivable 8,810
Prepaid items 300
Total Assets 2,803,700
Liabilities
Accounts payable 9,105
Due to broker 2,494
Total Liabilities 11,599
Net Position Held in Trust for Pension Benefits $ 2,792,101
59
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
Village of Tequesta General Employees' Pension Plan (GEPP) (continued)
GENERAL EMPLOYEES' PENSION TRUST FUND
STATEMENT OF CHANGES IN FIDUCIARYNET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
ADDITIONS
Contributions $ 279,465
Investment income 264,073
Total Additions 543,538
DEDUCTIONS
Refunds of contnbutions 43,209
Operating e�enses --
Total Deductions 43,209
Net Increase 500,329
Net Position Held in Trust for Pension Benefits
Net Position - Begmning 2,316,593
Net Position - End'mg $ 2 816 922
> >
Village of Tequesta Defined Contribution Pension Plan
The Village of Tequesta' Single Employer Defined Contribution Pension Plan (the Plan)
was established on February 1, 2013 with and effective date of March 1, 2013. The Plan is a
401(a) money purchase plan in the form of The ICMA Retirement Corporation
Governmental Money Purchase Plan and Trust 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 VantageTrust, and shall not be diverted to any other purpose. The
employer's beneficial ownership of Plan assets held in the VantageTrust 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
ICMA Retirement Corporation incidental to the administration of the Plan. The Village
serves as Trustee under the Plan.
60
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
F. PENSION OBLIGATIONS (CONTINUED�
Village of Tequesta Defined Contribution Pension Plan
In a defined contribution plan, benefits depend solely on amounts contributed to the Plan
plus investment earnings.
The Plan covers Police officers hired after February 1, 2013. Employees must designate a
mandatory participation contribution between the range of 0 to 5% 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 eligibiliry 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 of ceases to be eligible to participate in the
Plan. Village is required to match employee contributions up to a maximum contribution of
5%. Employees are immediately vested in the Plan. Plan provisions are established and
may be amended by the Village of Tequesta.
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, 2013 was $16,747, the first year of the plan. Employee contributions to the Plan for
fiscal year ended September 30, 2013 were $8,621; the City's contribution was $7,502.
G. OTHER POSTEMPLOYMENT BENEFIT (OPEBJ OBLIGATIONS
Village of Tequesta's Other Postemployment Benefits Plan
Plan Description. The Village provides an optional single employer defined benefit post-
employment healthcare plan to eligible individuals. The plan allows its employees and
their beneficiaries, at their own cost, to continue to obtain health, dental and other insurance
benefits upon retirement. The benefits of the plan conform to Florida Statutes, which are
the legal authority for the plan. The plan has no assets and does not issue a separate
financial report.
61
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
G. OTHER POSTEMPLOYMENT BENEFIT (OPEB� OBLIGATIONS (CONTINUED�
Village of Tequesta's Other Postemployment Benefits Plan (continued)
Funding Policy. The Village does not directly make a contribution to a health plan on
behalf of retirees. However, retirees and their beneficiaries can purchase from the Village's
healthcare provider the same health plan, at the same group rates as are charged to the
Village for active employees. Under GASB Statement No. 45, the Village is required to
calculate an offset to the cost of these benefits as an employer contribution, based upon an
implicit rate subsidy prepared by the Village's actuary. This offset equals the total age-
adjusted costs paid by the Village for its active employees for coverage of the retirees and
their dependents for the year net of the retiree's own payments for the year. The annual
other post employment benefit cost is calculated based on the annual required contribution
(ARC) of the employer, an amount actuarially determined in accordance with GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis,
is projected to cover the current cost of the benefit. Any unfunded actuarial liabilities are
amortized over a period not to exceed thirty years.
Annual OPEB cost and Net OPEB obligation. October l, 2012 the Village changed from a
traditional health plan to a high deductible health plan (HDHP) with a$1,500/$3,000
deductible for single coverage and $3,000/$6,000 deductible for family for exempt
employees and employees represented by the IAFF and PBA collective bargaining units.
Subsequently, the two retirees that were currently purchasing health insurance from the
Village elected not to purchase the HDHP. In the current year, one retiree elected to
participate in the HDHP while investigating other options. The Village considers this
indicative that this retiree, as well as future retirees, will choose not to participate in the
HDHP in the future. Under that assumption, the annual required contribution (ARC) for
fiscal year 2013 is zero reflecting no current cost of benefits. The Village of Tequesta has
less than 100 employees and has experienced low participation in prior periods (i.e., no
participation in FY 2012 and one participant in FY 2013). The Village considered
amortizing the current unfunded liability in one year, effectively allowing the Village to
write the existing liability off in the current year. However, the Village decided to take a
conservative approach by monitoring participation over the next two years before
determining whether to permanently write off the liability. Based upon these assumptions,
the end of the year net OPEB obligation is determined to be as follows:
Annual Required Contnbutions (ARC) $ --
Contnbutions made --
Increase in the Net OPEB Obligation --
Net OPEB Obligation - October 1, 2012 176,000
Net OPEB Obligation - September 30, 2013 $ 176,000
62
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
G. OTHER POSTEMPLOYMENT BENEFIT (OPEB) OBLIGATIONS (CONTINUED�
Village of Tequesta's Other Postemployment Benefits Plan (continued)
The funded status of the Plan as of October l, 2009, the most recent actuarial valuation date
is as follows:
Funded Covered Payroll
Unfunded Ratio (Annual Payroll UAAL
Actuarial Actuarial Actuarial (Actuarial of Active as a
Accrued Value of Accrued Value of Employees Percentage
Liability Plan Liability Plan Assets) Covered by of Covered
(AAL) Assets (UAAL) (AAL) the Plan) Payroll
$ 176,000 $ -- $ 176,000 0.0% $ 6,000,000 2.93%
Three-Year Trend Information
Fiscal Annual Percentage ofAnnual Net OPEB
Year End OPEB Cost OPEB Cost Conmbuted Obligation
2011 $ 107,000 19% $ 176,000
2012 -- 0% 176,000
2013 -- 0% 176,000
H. CONSTRUCTIONAND OTHER SIGNIFICANT COMMITMENTS
Construction Commitments
The Village had no significant construction commitments as of September 30, 2013.
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.
63
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
H. CONSTRUCTIONAND OTHER SIGNIFICANT COMMITMENTS (CONTINUEDJ
Contracted Services — Refuse and Recycling Collection
The Village entered into a solid waste and recyclable collection agreement with Waste
Management Inc. of Florida on September 13, 2007 for a period of five years beginning
October O1, 2007 and expiring September 30, 2013. 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 Village, on
August 5, 2010, entered into the first amendment to the agreement separating the diesel fuel
and collection components of the rate allowing for separate calculation of an annual
increase. The annual change in the collection component is determined using the CPI (June
to June) while the annual change in the fuel component is determined using the change in
the cost of diesel fuel determined by reference to EIA/DOE website that reports average
prices. Effective September 30, 2010 the Village entered into a second amendment to the
agreement extending the term of the current agreement and additional five (5) years from
October 1, 2013 and expiring September 30, 2017.
I. RISKMANAGEMENT
The Village is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets, errors and omissions, injuries to employees and natural disasters.
While the Village cannot anticipate the areas in which potential claims may arise, the
Village purchases commercial insurance to protect against areas of possible exposure
germane to municipal entities such as property, liability, automobile, workers'
compensation, crime, storage tank, inland marine 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 and business income 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 properties valued under
$100,000. FMIT issued members in good standing a return of premium credit; the Village
of Tequesta received a total credit of $16,280 in fiscal year 2013 related to policy year
2009/2010 and $5,493 related to policy year 2010/2011.
64
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
I. RISKMANAGEMENT �CONTINUED�
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 2012/2013 resulted in the
Village being refunded a total of $23,537, of which $13,280 was workers' compensation
related. This was due to the temporary reduction in staffing in the police department, which
also impacted our general liability which experienced a refund of $9,622. Property and
auto accounted for the additional $635.
There were no significant changes in insurance coverage from coverage in prior years.
Settled claims have not exceeded the commercial coverage in any of the past three fiscal
years.
.T. LEASE OBLIGATIONS
Capital Leases
The Village of Tequesta had no capital lease debt at September 30, 2013. However, the
Village solicited bids to finance the purchase of a new fire pumper truck and entered into a
capital lease agreement October 29, 2013.
K. LONG-TERMLIABILITIES
Promissory Notes
The Village of Tequesta 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 7 to 14 years and have
interest rates from 3.685% to 4.96% per year. Notes outstanding at September 30, 2013 are
as follows:
65
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
K. LONG-TERMLIABILITIES (CONTINUED�
Promissory Notes (continued)
Outstanding
Signed Original Interest Final September 30,
Promissory Notes Payable Date Borrowing Rate Maturity 2013
Government AcHvities
Public Improvements/P.S. Building 9/13/2002 $ 5,000,000 4.28% 9/13/2022 $ 2,778,261
Business-Type Activities
Water Plant Expansion 6/30/2004 $ 645,170 4.96% 4/1/2021 $ 283,895
Public Improvement (Refunding) 7/14/2008 6,554,935 3.69% 3/1/2028 5,269,675
Tota1 Business-Type Activities $ 5,553,570
Legal Debt Margin
The Village of Tequesta is subject to a bonded debt limitation of 10% of total assessed
value. At September 30, 2013, that amount was $81,763,503. As of September 30, 2013
the Village had total outstanding debt in governmental activities of $3,455,442 of which no
portion of the outstanding debt was applicable to the limit.
Changes in Long-Term Liabilities
Changes in the Village of Tequesta's long-term liabilities for the year ended September 30,
2013 are as follows:
Be�ning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:
Note payable - 2002 $ 3,026,070 $ -- $ 247,809 $ 2,778,261 $ 258,626
Compensated absences 510,621 135,697 127,137 519,181 37,600
Net OPEB obligation 158,000 -- -- 158,000 --
Governmental Activities
Long-Term Liabilities $ 3,694,691 $ 135,697 $ 374,946 $ 3,455,442 $ 296,226
66
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
K. LONG-TERMLIABILITIES (CONTINUED�
Changes in Long-TeYm Liabilities (continued)
For governmental activities, the liability for compensated absences and any other
postemployment benefit obligations is liquidated by the general fund.
Begimiuig Ending Due Within
Balance Additions Deletions Balance One Year
Business-Type Activities:
Note payable - 2004 $ 312,895 $ -- $ 29,000 $ 283,895 $ 30,000
Note payable - 2008 5,536,892 -- 267,217 5,269,675 277,867
Compensated absences 142,974 26,442 29,596 139,820 15,000
Net OPEB obligation 18,000 -- -- 18,000 --
Business-Type Activities
Long-Term Liabilities $ 6,010,761 $ 26,442 $ 325,813 $ 5,711,390 $ 322,867
In the prior year, the Village classified a deferred loss on refunding as a component of long-
term debt. During the fiscal year ended September 30, 2013, the Village implemented
GASB Statement No. 65, and in compliance with that statement, reclassified the deferred
charge as a deferred outflow of resources.
The debt service requirements for the Village's bonds, loans and notes are as follows:
Governmental Activities
Promissory Notes -
For The Year End'mg Governmental Activities
September 30, Principal Interest
2014 $ 258,626 $ 113,875
2015 269,915 102,586
2016 281,697 90,805
2017 293,993 78,509
2018 306,825 65,676
2019-2022 1,367,205 122,801
Total $ 2,778,261 $ 574,252
67
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3— DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
K. LONG-TERMLIABILITIES (CONTINUED�
Business-Type Activities
Promissory Notes -
For The Year Ending BUSiness-Type Activities
September 30, Principal Interest
2014 $ 307,867 $ 291,948
2015 319,885 194,219
2016 333,398 182,133
2017 347,859 168,586
2018 361,778 154,954
2019-2023 1,930,219 562,020
2024-2028 1,952,564 171,938
Total $ 5,553,570 $1,725,798
Total Primary GoveYnment Debt
For The Year Endmg Total Primary Government Debt
September 30, Principal Interest
2014 $ 566,493 $ 405,823
2015 589,800 296,805
2016 615,095 272,938
2017 641,852 247,095
2018 668,603 220,630
2019-2023 3,297,424 684,821
2024-2028 1,952,564 171,938
Total $ 8,331,831 $ 2,300,050
L. FUND BALANCE
Minimum Fund Balance Policy
The Village Council has adopted a financial policy to maintain a minimum level of
unrestricted fund balance (the total of the committed, assigned, and unassigned components
of fund balance) in the general fund. The target level is set at two months of general fund
annual revenues (approximately 16.7%). This amount is intended to provide fiscal stability
when economic downturns and other unexpected events occur. If fund balance fa11s 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.
68
VILLAGE OF TEQUESTA, FLORIDA
NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
NOTE 3- DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED�
M. INTERFUND TRANSFERS
The composition of interfund transfers for the fiscal year ended September 30, 2013 is as
follows:
Interfund Transfe�s
Transfers In
General
Transfers Out Fund Total
Capital Improvement fund $ 290,440 $ 290,440
Capital Projects fund 80,000 80,000
Special Law Enforcement Trust fund 50,000 50,000
Total $ 420,440 $ 420,440
N. .IOINT 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.
69
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REQUIRED SUPPLEMENTARY INFORMATION
VILLAGE OF TEQUESTA, FLORIDA
GENERAL FUND
REQUIRED SUPPLEMENTARY INFORMATION - SCHEDULE OF BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Ad valorem taxes $ 4,377,000 $ 4,377,000 $ 4,339,215 $ (37,785)
Other taxes 1,243,870 1,243,870 1,266,929 23,059
Intergovernmental 747,690 747,690 752,728 5,038
Franchise fees 401,400 401,400 380,160 (21,240)
Charges for services 904,590 904,590 901,659 (2,931)
Intragovernmental 503,709 503,709 503,709 --
Grants, contributions and donations 8,000 58,100 61,185 3,085
Licenses and permits 322,050 322,050 330,569 8,519
Investment earnings 25,500 25,500 22,316 (3,184)
Fines and forfeitures 20,800 20,800 17,929 (2,871)
Miscellaneous 21,900 40,432 98,341 57,909
Rents and royalties 143,050 143,050 147,303 4,253
Total revenues 8,719,559 8,788,191 8,822,043 33,852
EXPENDITURES
Current:
General government 1,546,545 1,583,016 1,528,314 54,702
Public safety 6,224,075 6,072,467 5,901,479 170,988
Transportation 787,400 800,289 800,959 (670)
Leisure services 590,410 586,712 561,938 24,774
Capital outlay 47,500 225,401 120,399 105,002
Debt service:
Principal 305,995 305,995 247,809 58,186
Interest 125,065 125,065 125,054 11
Fiscal charges 16,000 16,000 11,870 4,130
Total expenditures 9,642,990 9,714,945 9,297,822 (417,123
Excess (deficiency) of revenues over
(under) expenditures (923,431) (926,754) (475,779) 450,975
OTHER FINANCING SOURCES
Transfers in 452,440 452,440 420,440 (32,000
Total other financing sources 452,440 452,440 420,440 (32,000
Net change in fund balance (470,991) (474,314) (55,339) 418,975
Fund balances-beginning 3,696,502 3,696,502 3,696,502 --
Fundbalances-ending $ 3,225,511 $ 3,222,188 $ 3,641,163 $ 418,975
See note to budgetary comparison schedule.
70
VILLAGE OF TEQUESTA, FLORIDA
NOTE TO THE BUDGETARY COMPARISON SCHEDULE
FISCAL YEAR ENDED SEPTEMBER 30, 2013
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 and the legal level of budgetary
control is at that level. What this means is that any amendment that changes the fund's total
budget requires the Village Council to approve it in the same manner that the original
budget was approved — by resolution.
The original bud� 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 ��encumbrances)
=0riginal budget
The, anal budget includes all adjustments to the budget applicable to the fiscal year, even if
they take place after the close of the fiscal year.
During the year, total supplemental appropriations of $71,955 were approved and adopted
for the General Fund. Appropriations are legally controlled at the fund level and
expenditures may not legally exceed budgeted appropriations at that level. Appropriations
lapse at year end.
71
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Page Intentionally Left Blank
NONMAJOR GOVERNMENTAL FUNDS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for specific revenue sources that are restricted,
committed, or assigned to expenditures for particular purposes.
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 Fund 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 Projects Fund — This fund accounts for the acquisition or construction of major
capital projects, other than those financed by proprietary fund types.
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VILLAGE OF TEQUESTA, FLORIDA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
Special Revenue Capital Projects Total
Special Law Capital Capital Nonmajor
Enforcement Improvement Projects Governmental
Fund Fund Fund Funds
ASSETS
Cash and cash equivalents $ 4,033 $ 105,412 $ 54,314 $ 163,759
Total Assets $ 4,033 $ 105,412 $ 54,314 $ 163,759
LIABILITIES AND
FUND BALANCES
LIABILITIES $ __ $ __ g __ g __
FUND BALANCES
Restricted:
Law Enforcement 4,033 -- -- 4,033
Assigned:
Subsequent year's budget -- 100,000 50,000 150,000
Capital Projects -- 5,412 4,314 9,726
Total Fund Balances 4,033 105,412 54,314 163,759
Total Liabilities and Fund Balances $ 4,033 $ 105,412 $ 54,314 $ 163,759
75
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Special Revenue Capital Projects Total
Special Law Capital Capital Nonmajor
Enforcement Improvement Projects Governmental
Fund Fund Fund Funds
REVENUES
Grants, contributions and donations $ -- $ -- $ -- $ --
Forfeitures/confiscations 24,258 -- -- 24,258
Miscellaneous -- -- -- --
Investment earnings -- -- -- --
Total revenues 24,258 -- -- 24,258
EXPENDITURES
Current:
Public Safety 1,000 -- -- 1,000
Transportation -- -- 78,210 78,210
Total expenditures 1,000 -- 78,210 79,210
Excess (Deficiency) of Revenues
Over (LTnder) Expenditures 23,258 -- 7( 8,21�) (54,952)
OTHER FINANCING USES
Transfers out (50,000) (290,440) 80,000 (420,440)
Total Other Financing Uses (50,000) (290,440) 80,000 (420,440)
Net Change in Fund Balances (26,742) (290,440) (158,210) (475,392)
Fund Balances - Beginning of Year 30,775 395,852 212,524 639,151
Fund Balances - End of Year $ 4,033 $ 105,412 $ 54,314 $ 163,759
76
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
SPECIAL LAW ENFORCEMENT TRUST FUND
FOR T HE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Forfeitures/Confiscations $ 50,000 $ 50,000 $ 24,258 $ (25,742)
EXPENDITURES
Current:
Public Safety 1,000 1,000 1,000 --
Excess of Revenues Over
Expenditures 49,000 49,000 23,258 25,742
OTHER FINANCING USES
Transfers out (50,000) (50,000) 50,000 --
Net Change in Fund Balances (1,000) (1,000) (26,742) (25,742)
Fund Balances - Beginning 30,775 30,775 30,775 --
Fund Balances - Ending $ 29,775 $ 29,775 $ 4,033 $ 25,742
77
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL IMPROVEMENT FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Vaxiance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES $ -- $ -- $ -- $ --
EXPENDITURES -- -- -- --
Excess (deficiency) of revenues over
(under) expenditures -- -- -- --
OTHER FINANCING SOURCES
USES
Transfers out (290,440 (290,440 (290,440 --
Net Change in Fund Balances (290,440) (290,440) (290,440) --
Fund Balances - Beginning 395,853 395,853 395,853 --
Fund Balances - Ending $ 105,413 $ 105,413 $ 105,413 $ --
78
VILLAGE OF TEQUESTA, FLORIDA
BUDGETARY COMPARISON SCHEDULE
CAPITAL PROJECTS FUND
F OR T HE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Variance
with Final
Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES $ __ $ __ $ __ � __
EXPENDITURES
Transportation -- 130,000 78,210 51,790
Total expenditures -- 130,000 78,210 51,790
Excess (deficiency) of revenues over
(under) expenditures -- (130,000) (78,210) (51,790)
OTHER FINANCING USES
Transfers out (112,000 112,000 (80,000 32,000
Net Change in Fund Balance (112,000) (242,000) (158,210) (83,790)
Fund Balances - Beginning 212,524 212,524 212,524 --
Fund Balances - Ending $ 100,524 $ 29,476 $ 54,314 $ 83,790
79
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NONMAJOR ENTERPRISE FUNDS
NONMAJOR ENTERPRISE FUNDS
Stormwater Fund — This fund is used to account for the construction and maintenance
of the Village's stormwater system.
Refuse and Recycling Fund — This fund is used to account for revenues received from
non-ad valorem assessments fees charged to residents for residential curbside pick-up of
solid waste and recyclable material.
Page Intentionally Left Blank
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
SEPTEMBER 30, 2013
Total
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
ASSETS
Current Assets:
Cash and cash equivalents $ 809,393 $ 149,464 $ 958,857
Investments 6,593 6,550 13,143
Receivables, net 2,396 5,004 7,400
Inventories 547 -- 547
Prepaid items 793 -- 793
Total current assets 819,722 161,018 980,740
Non-Current Assets
Capital assets not being depreciated -- -- __
Capital being depreciated, net 1,639,989 -- 1,639,989
Total Non-Current Assets 1,639,989 -- 1,639,989
Total Assets 2,459,711 161,018 2,620,729
LIABILITIES
Current Liabilities:
Accounts payable 3,995 39,751 43,746
Non-Current Liabilities:
Compensated absences 1,695 -- 1,695
Total Liabilities 5,690 39,751 45,441
NET POSITION
Net investment in capital assets 1,639,989 -- 1,639,989
Unrestricted 814,032 121,267 935,299
Total Net Position $ 2,454,021 $ 121,267 $ 2,575,288
80
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Total
Nonmaj or
Stormwater Refuse & Enterprise
Utility Recycling Funds
Operating Revenues
Charges for services $ 323,513 $ 482,422 $ 805,935
Operating Expenses
Stormwater 109,868 109,868
Purchased services 477,314 477,314
Management services 11,630 6,850 18,480 �
Depreciation 99,785 -- 99,785
Total Operating Expenses 221,283 484,164 705,447
Operating Income 102,230 1,742 100,488
Non-Operating Revenues
Investment earnings 1,518 664 2,182
Total Non-Operating Revenues 1,518 664 2,182
Change in Net Position 103,748 (1,0'78) 102,670
Net Position - Beginning 2,350,273 122,345 2,472,618
Net Position - Ending $ 2,454,021 $ 121,267 $ 2,575,288
81
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Nonmajor
Stormwater Refuse & Enterprise
Utility Recycling Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers, governments and other funds $ 323,636 $ 483,245 $ 806,881
Cash paid to suppliers (188,521) (482,897) (671,418)
Cash paid to employees (52,505 -- (52,505
Net Cash Provided by Operating Activities 82,610 348 82,958
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTNITIES
Acquisition and construction of capital assets (148,687) -- (148,687)
Net Cash Used in Capital and Related Financing Activities (148,687) -- (148,687)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received on investments 1,066 232 1,298
Net Cash Provided by Investing Activities 1,066 232 1,298
Net Increase (Decrease) in Cash and Cash Equivalents (65,011) 580 (64,431)
Cash and Cash Equivalents - Beginning 874,404 148,884 1,023,288
Cash and Cash Equivalents - Ending $ 809,393 $ 149,464 $ 958,857
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Operating income $ 102,230 $ (1,742) $ 100,488
Depreciation 99,785 -- 99,785
Changes in operating assets and liabilities:
(Increase) decrease in:
Accounts receivable 123 823 946
Inventories 25 -- 25
Prepaid items and other assets (420) -- (420)
Increase (decrease)in:
Accounts payable (ll9,693) 1,267 (118,426)
Compensated absences 560 -- 560
Net Cash Provided by Operating Activities $ 82,610 $ 348 $ 82,958
Noncash Investing Activities
Change in fair value of investments $ 444 $ 424 $ 868
82
Page Intentionally Left Blank
FIDUCIARY FUNDS
FIDUCIARY FUNDS
Fiduciary funds are used to report assets held in a trustee or agency capacity for others
and therefore cannot be used to support the 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 postemployment benefit plans, or other employee benefit plans. The Village
accounts for three defined benefit plans and a separate fund is reported for each
individual pension plan. The three plans 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 hired prior to
February 1, 2013.
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 Intentionally Left Blank
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2013
Police General
Firefighters' Officers' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund Total
ASSETS
Cash and cash equivalents $ 227,897 $ 93,544 $ 60,434 $ 381,875
Investments, at fair value:
Carporate stocks 1,641,282 661,752 1,646,655 3,949,689
Corporate bonds -- -- 475,506 475,506
Government backed securities -- -- 294,113 290,113
Mutual Funds 4,936,132 2,036,461 315,207 7,287,800
Prepaid items -- -- 300 300
Contributions receivable 26,889 3,019 6,675 36,583
Accrued interest receivable 8,222 3,022 8,811 20,055
Total Assets 6,840,422 2,797,798 2,803,701 12,441,921
LIABILITIES
Accounts payable 6,377 5,551 9,105 21,033
Due to broker 23,142 9,493 2,494 3 5,129
"1'otal Liabilities 2y,51y 15,U44 11,Syy 56,162
NET POSITION
Net position held in trust for pension
benefits $ 6,810,903 $ 2,782,754 $ 2,792,102 $ 12,385,759
83
VILLAGE OF TEQUESTA, FLORIDA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013
Police General
Firefighters' Officers' Employees'
Pension Pension Pension
Trust Fund Trust Fund Trust Fund Total
ADDITIONS
Contributions:
Employer (including State) $ 457,686 $ 212,646 $ 182,294 $ 852,626
Employee 60,447 30,454 97,171 188,072
Total contributions 518,133 243,100 279,465 1,040,698
Investment earnings
Net increase in fair value of
investments 404,229 164,211 241,286 809,726
Gain/(loss) on sale of investments 130,010 53,333 (13,350) 169,993
Interest 118,730 48,412 63,460 230,602
Total investment earnings 652,969 265,956 291,396 1,210,321
Less investment expenses (25,321) (22,069) (27,323) (74,713)
Net investment earnings 627,648 243,887 264,073 1,135,608
Total Additions 1,145,781 486,987 543,538 2,176,306
DEDUCTIONS
Benefits paid 53,637 -- 8,534 62,171
Refunds of contributions -- 15,737 34,675 50,412
Operating expenses 19,035 19,008 24,821 62,864
Total Deductions 72,672 34,745 68,030 175,447
Net Increase 1,073,109 452,242 475,508 2,000,859
Net Position Held in Trust for
Pension Benefits
Net position - beginning 5,737,794 2,330,512 2,316,594 10,384,900
Net position - ending $ 6,810,903 $ 2,782,754 $ 2,792,102 $ 12,385,759
84
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STATISTICAL SECTION
This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
discloszues, 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 tixne. 85-89
Revenue Cabacitv
These schedules contain information to help the reader assess the Village's most
significant local revenue source, the property tax. 90-93
Debt Cauacitv
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. 94-98
Demo�raphic 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. 99-100
Ouerating 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. 101-103
Sources: Unless other wise noted, the information in these schedules is derived from
the Comprehensive Annual Financial Reports for the relevant year.
VILLAGE OF TEQUESTA, FLORIDA
NET PO5ITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental Activities
Net investment in capital assets $ 921,889 $ 1,788,749 $ 4,515,096 $ 6,679,855 $ 6,959,332 $ 7,330,897 $ 7,525,570 $10,730,256 $10,591,778 $10,261,476
Restricted -- -- 143,370 140,990 -- -- -- -- 579,809 579,320
Unresh 4,947,838 6,926,208 5,570,447 5,402,774 6,459,522 6,218,462 5,306,661 4,442,410 3,510,237 3,011,737
Total Governmental Activities Net Position $ 5,869,727 $ 8,714,957 $10,228,913 $12,223,619 $13,418,854 $13,549,359 $12,832,231 $15,172,666 $14,681,824 $13,852,533
Business-Type Activities:
Net investment in capital assets $ 9,602,9ll $10,815,151 $11,722,188 $14,513,500 $14,082,989 $13,713,525 $13,037,012 $14,673,046 $14,718,841 $14,167,067
Restricted 322,818 317,102 396,369 328,544 -- -- -- -- -- --
Unrestricted 5,901,624 4,604,463 4,867,905 3,046,229 3,581,512 3,997,271 4,975,318 4,315,056 4,884,793 5,408,598
Total Business-Type Activities Net Position $15,827,353 $15,736,716 $16,986,462 $17,888,273 $17,664,501 $17,710,796 $18,012,330 $18,988,102 $19,603,634 $19,575,665
Primary government:
Net investment in capital assets $10,524,800 $12,603,900 $16,237,284 $21,193,355 $21,042,321 $21,044,422 $20,562,582 $25,403,302 $25,310,619 $24,428,543
Restricted 322,818 317,102 539,739 469,534 -- -- -- -- 579,809 579,300
Unrestricted 10,849,462 11,530,671 10,438,352 8,449,003 10,041,034 10,215,733 10,281,979 8,757,466 8,395,030 8,420,335
TotalGovernmentalActivitiesNetPosition $21,697,080 $24,451,673 $27,215,375 $30,111,892 $31,083,355 $31,260,155 $30,844,561 $34,160,768 $34,285,458 $33,428,178
Note: The Village implemented GASB Statement No. 63 during the fiscal year ended September 30, 2013 and utilized the new terminology for all years presented.
85
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Expenses
Govemmental ac[ivi[ies:
General government $ 1,105,741 $ 1,36I,013 $ 1,402,535 $ 1,391,654 $ 1,344,038 $ 1,501,344 $ 1,503,750 $ 1,591,575 $ 1,629,ll5 $ 1,642,948
Publicsafety 4,138,374 4,691,063 5,577,243 5,634,834 5,7A4,245 5,807,477 6,313,835 5,989,357 6,210,365 6,207,866
Transportation 804,523 656,158 837,441 766,226 736,844 774,966 843,960 857,456 898,458 1,049,062
Leisureservices 458,659 605,745 756,224 559,583 539,450 639,590 710,685 635,671 635,110 640,513
Interestonlong-term debt 262,479 248,728 243,871 229,074 206,126 180,770 169,792 I58,685 146,868 135,204
Total Governmental Acrivities Expenses 6,769,776 7,562,707 8,817,314 8,581,371 8,610,703 8,904,147 9,542,022 9,232,744 9,519,916 9,675,593
Business-type activities:
Water 3,975,766 4,026,027 4,I87,257 4,139,784 3,760,426 3,907,950 3,989,517 3,829,330 4,017,097 4,204,955
Stormwater 155,537 142,788 198,993 188,709 215,163 226,498 223,421 194,331 207,526 221,283
Refuseandrecycling 252,933 260,715 27Q887 306,347 42QOA1 444,449 431,156 444,302 46R,637 484,165
Community development 513,101 -- -- -- -- -- -- -- __ __
Total Business-Type Ac6vities Expenses 4,897,337 4,429,530 4,657,137 4,634,840 4,395,670 4,578,897 4,644,094 4,467,963 4,693,260 4,910,403
Total Primary Government Program Expenses $11,667,113 $11,992,237 $ 13,474,451 $13,216,21 I$13,006,373 $13,483,044 $14,186,116 $ 13,700,707 $ 14,213,176 $ 14,585,996
Program Revenues
Govemmental activities:
Charges for services:
Generalgovemment $ 439,646 $ 260,647 $ 270,137 $ 278,215 $ 475,244 $ 302,IA2 $ 316,816 $ 568,452 $ 742,438 $ 695,801
Publicsafety 538,056 1,04Q427 1,121,642 l,006,947 863,391 783,774 899,639 1,2A3,728 1,270,308 1,142,593
Transportation -- -- -- -- 12 -- -- -- -- 4,450
Lcisure services 42,430 4,4I0 57,261 54,364 SQ219 72,457 92,003 77,955 71,939 86,349
Opera4ng grantsand contributions 43,945 515,435 365,183 20,350 1A,711 67,842 24,354 58,746 60,260 95,145
Capital grants and contributions 535,000 54,764 57,736 100,000 2,689,626 ] 19,200
Total Governmental Activities Program Revenues 1,064,077 1,82Q922 2,349,223 1,414,640 1,465,313 1,226,285 1,432,812 4,678,507 2,264,145 2,024,368
Business-Type Activities
Charges for services:
Water 3,931,562 4,037,674 4,090,26A 3,SSO,SOA 3,463,564 3,863,439 4,076,132 4,585,ZA7 4,436,958 4,018,755
Stormwater 303,450 298,188 301,993 303,273 299,729 314,569 313,126 3I4,264 323,193 323,513
Refuseandrecycling 248,252 277,589 283,821 2A5,917 402,439 414,312 4I4,657 436,142 487,392 482,422
Community development 348,511 -- -- - -- -- -- -- -- __
Operafing grants and contributions -- -- 42,471 7,827 -- -- 51,51 l -- -- --
Capital grants and contributions -- 119,944 484,000 430,000 -- -- -- -- -- --
Total Business-Type Activities Program Revenues 4,831,775 4,733,395 5,202,553 4,877,525 4,165,732 4,592,320 4,855,426 5,335,693 5,247,543 4,824,690
Total Primary Government Program Revenues $ 5,895,852 $ 6,554,317 $ 7,551,776 $ 6,292,165 $ 5,631,045 $ 5,81A,605 $ 6,288,238 $10,014,200 $ 7,S11,688 $ 6,849,OSA
Net(Expense) Revenue
Governmental activities $ (5,705,699) $ (5,741,785) $ (6,468,09t) $ (7,166,731) $ (7,145,390) $ (7,677,862) $ (8,109,210) $ (4,554,237) $ (7,255,771) $ (7,651,225)
Business-type activi[ies (65,562) 303,865 545,416 242,685 (229,938) I3,423 211,332 867,730 554,283 (85,713)
Total Primary Government Net Expense $ (5,771,261 $ (5,437,920) $ (5,922,675) $ (6,924,046) $ (7,375,328) $ (7,664,439) $ (7,897,878) $ (3,686,507) $ (6,701,488) $ (7,736,938)
Note: The Village implemented GASB Statement No. 63 during the fiscal year ended Sep[ember 30, 2013 and utilized the new [erminology for all years presented.
86
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
General Revenues 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental activities:
Taxes:
Propertytaxes $ 3,781,095 $ 4,494,713 $ 5,166,754 $ 6,139,007 $ 5,661,200 $ 5,173,808 $ 4,643,816 $ 4,341,668 $ 4,268,732 $ 4,339,215
Other taxes 1,089,781 1,084,827 1,087,759 1,157,128 1,123,272 1,285,063 1,315,006 1,266,681 1,235,941 1,266,929
Franchise fees based on gross receipts 372,212 367,778 419,929 477,711 462,296 466,541 435,766 412,441 393,734 380,160
Unrestricted intergovernmental 558,069 622,457 679,001 815,828 783,034 702,616 717,673 724,400 718,277 735,924
Unrestricted investment earnings 79,483 214,588 392,961 404,816 152,602 8,725 71,067 32,775 49,173 22,316
Miscellaneous revenues 83,126 641,901 173,362 106,647 37,621 171,614 208,754 116,707 99,072 77,390
Gain (loss) on sale of capital assets (1,012,584) -- 1,981 -- -- -- -- -- -- --
Transfers (8,460 710,151 60,300 60,300 120,600 -- -- -- -- --
Total Governmental Revenues and transfers 4,942,722 8,136,415 7,982,047 9,161,437 8,340,625 7,808,367 7,392,082 6,894,672 6,764,929 6,821,934
Business-Type Activities
Unrestricted Investment earnings 75,846 164,163 280,665 321,718 86,811 (9,208) 49,973 28,074 30,448 20,727
Miscellaneous revenues 82,576 151,487 479,145 397,708 39,955 42,080 40,229 79,968 30,801 37,017
Gain (loss) on sale of capital assets 3,850 (710,151) 4,820 -- -- -- -- -- -- --
Transfers 8,460 -- (60,300 (60,300 (120,600 -- -- -- -- --
Total Business-Type Activities 170,732 (394,501 704,330 659,126 6,166 32,872 90,202 108,042 61,249 57,744
Total Primary Government 5,113,454 7,741,914 8,686,377 9,820,563 8,346,791 7,841,239 7,482,284 7,002,714 6,826,178 6,879,678
Change in net position:
Governmental activities (762,977) 2,394,630 1,513,956 1,994,706 1,195,235 130,505 (717,128) 2,340,435 (490,842) (829,291)
Business-type activities 105,170 (90,636 1,249,746 901,811 (223,772 46,295 301,534 975,772 615,532 (27,969)
Total Primary Government $ (657,807 $ 2,303,994 $ 2,763,702 2.896.517 $ 971.463 $ 176,800 $ (415,594 $ 3,316,207 $ 124,690 $ (857,260
Note: The Village implemented GASB Statement No. 63 during the fiscal year ended September 30, 2013 and utilized the new ternunology for all years presented.
87
VILLAGE OF TEQUESTA, FLORIDA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General Fund
Reserved $ 50,509 $ 56,759 $ 176,410 $ 47,493 $ 82,197 $ 383,766 $ 129,394 $ -- $ -- $ --
Unreserved 3,718,380 3,424,408 3,221,390 4,456,247 5,180,611 4,296,418 3,846,418 -- -- --
Nonspendable -- -- -- -- -- -- -- 22&,049 178,478 144,581
Restricted -- -- -- -- -- -- -- 419,591 549,034 575,287
Assigned -- -- -- -- -- -- -- 1,372,125 1,481,792 1,000,000
Unassigned 2,009,180 1,487,198 1,921,295
Total General Fund $ 3,768,889 $3,481,167 $3,397,800 $4,503,740 $5,262,808 $4,680,184 $3,975,812 $ 4,028,945 $ 3,696,502 $ 3,641,163
All Other Governmental Funds
Reserved 341,722 823,675 143,370 196,426 12,752 29,508 117,838 -- -- --
Unreserved, reported in:
Special revenue fund 15,692 17,901 255,179 362,582 391,527 22,037 21,072 -- -- --
Capital Projects funds 889,395 2,519,033 1,599,416 457,885 803,511 1,502,939 1,366,119 -- -- --
Restricted -- -- -- -- -- -- -- 45,771 30,775 4,033
Assigned 646,977 608,377 159,726
Total Other Governmental Funds $ 1,246,809 $3,360,609 $1,997,965 $1,016,893 $1,207,790 $1,554,484 $1,505,029 $ 692,748 $ 639,152 $ 163,759
Note: The Village implemented GASB Statement No. 54 for the fiscal year ended September 30, 2011
88
VILLAGE OF TEQUESTA, FLORIDA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenues
Taxes $5,243,088 $ 5,579,540 $ 6,254,513 $ 7,296,135 $ 6,871,639 $ 6,458,871 $ 5,958,822 $5,608,349 $5,504,673 $5,606,144
Intergovernmental 596,947 622,457 679,001 815,828 783,034 724,375 839,110 776,500 755,792 752,728
Franchise fees - 367,778 419,929 477,711 462,296 466,541 435,766 412,441 393,734 380,160
Charges for services 477,513 490,995 507,702 526,922 574,937 597,269 687,332 888,639 948,395 901,659
Intragovernmental 341,700 254,898 262,700 273,150 280,100 292,990 307,740 323,110 503,163 503,709
Grants, contributions and donations 43,945 515,438 900,183 90,398 76,448 37,583 -- -- 126,944 61,185
Licenses and permits 93,601 549,884 631,521 401,704 299,059 211,371 279,835 332,913 417,702 330,569
Interest 79,483 214,588 392,961 404,816 152,602 8,725 71,067 32,775 49,173 22,316
Fines and forfeitures 57,413 352,254 34,825 111,080 40,779 34,877 21,721 204,273 57,539 42,187
Miscellaneous 83,126 289,647 175,343 52,899 38,242 80,603 62,009 141,902 86,064 98,341
Rents and royalties - - - 108,628 103,627 120,596 161,492 162,651 167,636 147,303
Impact fees 11,028 9,707 12,292 3,858 2,575 851 -- -- 18,257 --
TotalRevenues 7,027,844 9,247,186 10,270,970 10,563,129 9,685,338 9,034,652 8,824,894 8,883,553 9,029,072 8,846,301
Expenditures
Current:
General government 1,225,550 1,314,270 1,391,612 1,371,148 1,220,238 1,373,158 1,341,475 1,410,417 1,469,615 1,528,314
Public safety 3,918,798 4,351,936 5,233,807 5,291,398 5,439,202 5,411,745 5,830,734 5,565,091 5,902,568 5,902,479
Transportation 776,273 625,014 807,651 736,436 692,552 710,384 738,323 714,934 725,833 879,169
Leisure services 384,980 523,439 692,408 495,767 467,740 562,714 619,340 548,729 552,002 561,938
Capital outlay 368,303 870,453 3,162,034 1,892,075 257,373 752,980 594,224 973,810 335,689 120,399
Debt service:
Principal 319,280 336,101 382,687 482,665 572,742 278,831 284,833 271,035 282,537 247,809
Interest 262,479 255,672 243,871 222,938 200,236 171,297 159,506 148,186 137,027 125,054
Fiscal charges -- -- -- 6,136 5,890 9,473 10,286 10,499 9,841 11,870
TotalExpenditures 7,255,663 8,276,885 11,914,070 10,498,563 8,855,973 9,270,582 9,578,721 9,642,701 9,415,112 9,377,032
Excess (Deficiency) of Revenues
OverExpenditures (227,819 970,301 (1,643,100 64,568 829,364 (235,930 (753,827) (759,148 (386,040) (530,731
Other �nancing Sources (Uses)
Transfers in 326,010 3,771,617 2,023,368 685,644 924,300 1,642,813 273,549 250,000 251,300 420,440
Transfers-out (334,470) (3,068,840) (1,963,068) (625,344) (803,700) (1,642,813) (273,549) (250,000) (251,300) (420,440)
Other proceeds 574,624 152,999 136,789 -- -- -- -- -- -- --
Total Other Financing Sources (Uses) 566,164 855,776 197,089 60,300 120,600 -- -- -- -- --
Net Change in Fund Balances $ 338,345 $ 1,826,077 $ (1,446,011) $ 124,868 $ 949,964 $ (235,930) $ (753,827) $ (759,148) $ (386,040) $ (530,731)
Debt Service as a Percentage of
Noncapital Expenditures 8.45% 7.99% 716% 8.20% 8.99% 5.28% 4.95% 4.84% 4.62% 4.03%
RQ
VILLAGE OF TEQUESTA, FLORIDA
ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Centrally
Real Property Personal Property Assessed Property Total
Estimated Estimated Estimated Estimated Assessed
Actual "JusY' Actual "Just" Actual "Just" Actual "Just" Value as a
Taxable Value of Taxable Value of Taxable Value of Taxable Direct Value of Percentage of
Fiscal Year Ended Assessed Taxable Assessed Taxable Assessed Taxable Assessed Tax Taxable Actual
September 30 Valae Property Value Property Value Property Value Rate Property Value
2004 $ 583,470,308 $ 789,428,369 $19,488,528 $ 22,409,087 $ 326,474 $ 326,474 $ 603,285,310 $ 6$ 812,163,930 74%
2005 695,900,596 950,969,798 19,752,631 22,669,061 340,485 340,485 715,993,712 6.4980 973,979,344 74%
2006 804,692,586 1,159,686,579 20,372,762 23,286,106 340,839 340,839 825,406,187 6.4980 1,183,313,524 70%
2007 959,65Q125 1,369,028,275 21,925,090 21,925,090 385,284 385,284 981,960,499 6.4980 1,391,338,649 71%
2008 992,309,662 1,410,466,330 24,589,752 27,733,698 489,214 489,214 1,017,388,628 5.7671 1,438,689,242 71%
2009 905,243,765 1,263,380,924 20,238,412 26,800,875 724,859 730,883 926,207,036 5.7671 1,290,912,682 72°/a
2010 813,253,151 1,087,782,592 19,867,770 25,872,707 713,541 718,791 833,906,426 5.7671 1,114,374,270 75%
2011 759,663,152 990,741,690 20,087,425 26,205,842 471,680 476,546 780,222,257 5.7671 1,017,424,078 77%
2012 746,532,525 972,735,340 17,997,653 23,646,754 487,407 491,873 765,017,585 5.7671 996,873,967 77°/a
2013 760,886,279 985,098,719 17,464,955 23,010,389 1,559,808 1,564,811 779,911,042 5.7671 1,009,673,919 77%
Source: Palm Beach County Property Appraiser's office: .
Form DR-403V Revised Recapitulation of the Ad Valorem Rolls of Tequesta, Palm Beach County Florida
90
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS
(Per $1,000 of Assessed Value)
LAST TEN FISCAL YEARS
Direct Rates Overlapping Rates (1)
S. Florida Jupiter Fl. Island Children's County
Fiscal Year Ending Village County Everglades School County Water Mgmt. Inlet Nav. District Services Health Care
September 30 Rate County Debt Construction District Library District District (FIND) Council District
2004 6.4980 4.5000 0.2910 0.1000 8.5710 0.5833 0.5970 0.0916 0.0385 0.6902 1.1300
2005 6.4980 4.5000 0.2677 0.1000 8.4320 0.5807 0.5970 0.0916 0.0385 0.6902 1.1000
2006 6.4980 4.4500 0.2692 0.1000 8.1060 0.6250 0.5970 0.0916 0.1000 0.6887 1.0800
2007 6.4980 4.2800 0.1975 0.1000 7.8720 0.5989 0.5970 0.0916 0.0385 0.6199 0.9700
2008 5.7671 3.7811 0.2002 0.0894 7.3560 0.5441 0.5346 0.0909 0.0345 0.5823 0.8900
2009 5.7671 3.7811 0.1845 0.0894 7.2510 0.5427 0.5346 0.1000 0.0345 0.6009 0.9975
2010 5.7671 4.3440 0.2174 0.0894 7.9830 0.5518 0.5346 0.1253 0.0345 0.6898 1.1451
2011 5.7671 4.7500 0.2460 0.0894 8.1540 0.6069 0.5346 0.1364 0.0345 0.7513 1.1451
2012 5.7671 4.7815 0.2110 0.0624 8.1800 0.6081 0.1785 0.1364 0.0345 0.7475 1.1250
2013 5.7671 4.7815 0.2087 0.0613 7.7780 0.6066 0.1757 0.1364 0.0345 0.7300 1.1220
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village of Tequesta.
Sources: Palm Beach County Property Appraiser's office
91
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
2013 2004
Percentage of Percentage of
Taxable Total Village Taxable Total Village
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Value Value Rank Value
Tamwest Realty, Inc (County Line Plaza) $ 16,132,040 1 2.07% $ 10,604,318 1 1.76%
GHM Tequesta Holdings, LLC 11,126,197 2 1.43°/o
DDR S.E. Tequesta, LLC (Teq. Shoppes) 7,997,096 3 1.03% 8,361,691 2 1.39%
Florida Power & Light Co. 7,550,656 4 0.97%
Tequesta Investors, LP 6,964,298 5 0.89%
Terrace Communities Tequesta, LLC 6,890,927 6 0.88% 7,730,984 3 1.28%
ALS North America, Inc. 4,000,000 7 0.51%
SLO ML LLC 3,875,855 8 0.50%
JMZ Tequesta Properties, INC 3,504,304 9 0.45% 3,037,628 8 0.50%
Tequesta Country Club 2,858,223 10 0.37°/o 3,698,390 6 0.61%
Cohen Square, LLC 5,450,000 4 0.90%
AHC Purchaser Inc 4,648,041 5 0.77%
Hersey Harry 3,675,160 7 0.61 %
HCP Property of Florida, INC 3,009,580 9 0.50%
Mantwill, David A. 2,870,464 10 0.48%
Total $ 70,899,596 9.09 $ 53,086,256 8.80%
Source: Palm Beach County Tax Collector's System, tax year 2013
92
VILLAGE OF TEQUESTA, FLORIDA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collected within the
Fiscal Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date (2)
Ended forthe Percentage in Subsequent Percentage
September 30, Fiscal Year (1) Amount of Levy Years Amount of Levy
2004 $ 3,912,003 $ 3,776,782 96.5% $ 4,125 $ 3,780,907 96.6%
2005 4,650,578 4,486,224 96.5% 5,857 4,492,081 96.6%
2006 5,363,489 5,164,292 96.3% 5,543 5,169,835 96.4%
2007 6,355,149 6,134,038 96.5% 9,004 6,143,042 96.7%
2008 5,863,796 5,663,439 96.6% 7,032 5,670,471 96.7%
2009 5,341,529 5,162,044 96.6% 13,219 5,175,263 96.9%
2010 4,809,222 4,627,732 96.2% 11,270 4,639,002 96.5%
2011 4,513,447 4,338,395 96.1°/a 4,562 * 4,342,957 96.2%
2012 4,425,793 4,254,037 96.1% (526) 4,253,512 96.1%
2013 4,502,727 4,337,570 963% -- 4,337,570 96.3%
(1) The tax levied in a fiscal year is based on the taxable value of the prior year
(2) Includes discounts taken by property taxpayers.
*Break down by the years for this amount is not available at this time. Some delinquent collections in FY 12 are applied to FY 11.
Source: Palm Beach County Tax Collector's office.
93
VILLAGE OF TEQUESTA, FLORIDA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business-rype Activities Total Percentage
Fiscal Year Ending Revenue Notes Capital Revenue Notes Primary of Personal Per
September 30 Bonds Payable Leases Bonds Payable Government Income Capita
2004 $ 595,000 $ 4,669,648 $ 363,065 $ 7,185,000 $ 645,170 $ 13,457,883 6.81°/a 2,383
2005 490,000 4,493,579 461,032 7,020,000 524,852 12,989,463 6.53% 2,284
2006 380,000 4,309,827 508,886 6,850,000 504,852 12,553,565 6.29% 2,202
2007 259,846 4,118,053 338,150 6,670,000 437,952 11,824,001 4.61°/a 1,990
2008 -- 3,917,908 225,398 -- 6,929,640 11,072,946 3.39% 1,877
2009 -- 3,709,027 155,448 -- 6,668,462 10,532,937 3.03% 1,794
2010 -- 3,491,028 88,613 -- 6,405,528 9,985,171 3.04% 1,774
2011 -- 3,263,515 45,092 -- 6,132,618 9,441,225 2.92% 1,677
2012 -- 3,026,070 - -- 5,849,788 8,875,858 2.94% 1,572
2013 -- 2,778,261 - -- 5,553,570 8,331,831 2.65°/a 1,476
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
94
VILLAGE OF TEQUESTA, FLORIDA
RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(2)
Assessed (A) (B) ( A- B) Ratio of Net Net
Value of Gross Debt Service Net O/S Debt to Outstanding
Fiscal Year Ending (1) Taxable Outstanding Funds Outstanding Value of Debt
September 30, Population Property Debt Available (O/S) Debt Taxable Property Per Capita
2004 5,648 $ 603,285,310 $ 13,457,883 $ 272,801 $ 13,185,082 2.19% $ 2,334
2005 5,686 715,993,712 12,989,463 294,444 12,695,019 1.77% 2,233
2006 5,702 825,406,187 12,553,565 378,680 12,174,885 1.48% 2,135
2007 5,942 981,960,499 11,824,001 482,726 11,341,275 1.15% 1,909
2008 5,898 1,017,388,628 11,072,946 369,490 10,703,456 1.05% 1,815
2009 5,872 926,207,036 10,532,937 -- 10,532,937 1.14% 1,794
2010 5,629 833,906,426 9,985,171 -- 9,985,171 120% 1,774
2011 5,629 780,222,257 9,441,225 -- 9,441,225 1.21% 1,677
2012 5,646 765,017,585 8,875,858 -- 8,875,858 1.16% 1,572
2013 5,652 779,911,042 8,331,831 -- 8,331,831 1.07% 1,474
(1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida
(2) Form DR-422 "Certificate of Final Taxable Value"
95
VILLAGE OF TEQUESTA, FLORIDA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Total Assessed Value (1) $ 779,911,042
Legal Debt Margin
Debt limitation - 10% of total assessed value (2) 77,991,104
Total bonded debt outstanding -- --
Less amount in debt service fund --
Total Debt Applicable to Limitation --
Legal Debt Margin $ 77,991,104
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
DebtLimit $71,463,973 $82,565,448 $98,162,738 $ 101,695,653 $93,130,772 $83,442,520 $83,390,643 $78,022,226 $ 76,501,759 $ 77,991,104
Total Net Debt Applicable to Limit 322,199 I95,556 1,023 -- -- -- -- -- -- --
Legal debt margin $71,141,774 $82,369,892 $98,161,715 $ 101,695,653 $93,130,772 $83,442,520 $83,390,643 $78,022,226 $ 76,501,759 $ 77,991,104
Total Net debt Applicable to Limit
as a Percentage of Debt Limit 0.45% 0.24% 0.00% 0.00% 0.00% 0.00% 0.00°/a 0.00% 0.00% 0.00°/o
(1) Form DR-422 "Certificate of Final Taxable Value"
(2) Village of Tequesta Charter Section 5.02 Limitations
96
VILLAGE OF TEQUESTA, FLORIDA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2013
Estimate
Estimate Share of
Net Percentage Direct and
Debt Applicable to Overlapping
Governmental Unit Outstanding Tequesta Debt
(a) (b)
OVERLAPPING
Palm Beach County $ 187,210,000 0.62% $ 1,160,702
P.B.C. School Board 26,370,000 0.62% 163,494
Subtotal, overlapping debt 1,324,196
DIRECT DEBT
Village of Tequesta 2,778,261 2,778,261
Total direct and overlapping debt $ 4,102,457
(a) Sources: Palm Beach County and PBC School Board
Note: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.
Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable
assessed value. (Data provided by the PBC Property Appraiser's Office)
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village of Tequesta. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village
of Tequesta. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden
borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident and
therefore responsible for repaying the debt of each overlapping government.
97
VILLAGE OF TEQUESTA, FLORIDA
PLEDGED- REVENUE COVERAGE
LAST TEN FISCAL YEARS
Net
Fiscal Pledged Less: Available Debt Service (2)
Year Revenues (1) Expenditures Revenue Principal Interest Coverage
2004 464,973 142,678 322,295 100,000 42,678 2.26
2005 459,873 141,490 318,383 105,000 36,490 2.25
2006 524,468 140,135 384,333 ll0,000 30,135 2.74
2007 593,649 143,370 450,279 120,154 23,216 3.14
2008 515,700 275,836 239,864 259,846 15,990 0.87
2009 -- -- -- -- -- -
2010 -- -- -- -- -- -
2011 -- -- -- -- -- -
2012 -- -- -- -- -- -
2013 -- -- -- -- -- -
Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.
(1) Pledged revenues include franchise fees, licenses and permits from Fund 101.
Fund 101 closed in fiscal year 2009.
(2) Debt paid in full in fiscal year 2008.
98
� VILLAGE OF TEQUESTA, FLORIDA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per Palm Beach
Capita County
Fiscal Population Personal Personal Median Unemployment
Year (1) Income (2) Income (2) Age (3) Rate (4)
2004 5,648 $ 197,533,152 $ 34,974 47.5 5.7°/a
2005 5,686 198,862,164 34,974 47.5 3.1 °/a
2006 5,702 199,421,748 34,974 47.5 3.7%
2007 5,942 256,397,300 43,150 47.5 3.3°/a
2008 5,898 326,224,278 55,311 47.5 73%
2009 5,872 347,311,184 59,147 47.5 9.7%
2010 5,629 328,497,182 58,358 47.5 11.4%
2011 5,629 323,447,969 57,461 49.9 11.0%
2012 5,646 302,061,000 53,500 49.9 9.2%
2013 5,652 314,409,456 55,628 49.9 7.1%
Sources:
(1) Florida Estimates of Population - Bureau of Economic and Business research, University of Florida.
(2) US Department of Commerce, Bureau of Economic Analysis, Regional Economic
Information System, Apri12011
(3) U.S. Census Bureau, 2010 Census
(4) U.S. Department of Labor, Bureau of Labor Statistics, Labor Market Statistics Center,
Local Area Unemployment Statistics Program
99
VILLAGE OF TEQUESTA, FLORIDA
PRINCIPAL EMPLOYERS - PALM BEACH COUNTY (1)
CURRENT YEAR AND EIGHT YEARS AGO
2012 2004
Percentage of Percentage of
Total County Total County
Employer Employees Rank Employment Employees Rank Employment
School Board of Palm Beach County 20,810 1 3.56% 18,672 1 334%
Palm Beach County 11,636 2 1.99% 10,734 2 192%
Tenet Healthcare Corporation 6,100 3 1.04% 4,705 3 0.84%
Florida Power & Light (Headquarters) 3,804 4 0.51°/o 2,800 5 0.50%
G4S (Headquarters) 3,000 5 0.65%
Florida Atlantic University 2,980 6 0.51%
Hospital Corporation of America (HCA) 2,714 7 0.46%
Veterans Health Administration 2,700 8 0.46%
Bethesda Memorial Hospital 2,643 9 0.45%
Boca Raton Regional Hospital 2,250 10 039%
Columbia PB Healthcare System, Inc. 4,000 4 0.72%
Office Depot (Headquarters) 2,780 6 0.50%
Boca Raton Resort & Club 2,380 7 0.43%
U.S. Sugar Corporation 2,200 8 0.39%
Florida Crystals 2,000 9 036%
Delray Community Hospital 2,000 10 036%
58,637 10.02% 52,271 9.36%
Note: 2013 numbers were not available at time of publication
Source: Business Development Board of Palm Beach County
Employment information for the Town is not available
100
VILLAGE OF TEQUESTA, FLORIDA
FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program 2004 2005 2006 2007 2008 2009 2010 20ll 2012 2013
Governmental Activities
General government 12.0 11.5 10.5 9.5 15.0 15.0 10.0 10.5 10.5 11.5
Public safery 45.0 45.0 46.0 51.0 50.0 49.0 50.0 49.0 50.0 53.0
Transportation - - 3.0 4.0 4.0 4.0 4.0 4.0 4.0 5.0
Leisure services 2.0 2.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Total Governmental Activities 59.0 58.5 62.5 67.5 72.0 71.0 67.0 66.5 67.5 72.5
Business-Type Activities
Water 14.5 14.0 15.0 15.5 15.0 16.0 15.0 14.5 14.5 16.5
Stormwater - - 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Community development (1) 2.5 - - - - - - - - -
Total Business-Type Activities 17.0 14.0 16.0 16.5 16.0 17.0 16.0 15.5 15.5 17.5
Total Primary Government 76.0 72.5 78.5 84.0 88.0 88.0 83.0 82.0 83.0 90.0
Note: The Village was able to access this data from 2002.
Source: Village of Tequesta Human Resource Department
Notes: A full-time employee is scheduled to wark 2,088 hours per year (including vacation and sick leave). Full-time-equivalent
employment is calculated by dividing total labor hours by 2,088.
(1) Communiry Development activities (planning, building and code enforcement) were accounted for in an enterprise (business-
type activity) fund until fiscal year 2005 when the fund was closed. Planning and building activities are currently accounted for in
the General Fund, and code enforcement as part of the function of Public Safety.
101
VILLAGE OF TEQUESTA, FLORIDA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST EIGHT FISCAL YEARS
2006 2007 2008 2009 2010 2011 2012 2013
Governmental Activities
General government
Registered voters 4,007 4,007 4,439 4,612 4,505 4,543 4,676 4,854
Public safety:
No. of full-time certified police officers 16 19 17 18 17 19 11 * 18
No. of calls received 3,300 3,500 3,535 3,533 3,178 3,266 3,272 3,571
No. of arrests 199 238 224 251 296 204 129 136
No. of parking violations 162 148 171 131 124 82 149 328
No. of incident numbers issued 817 853 965 887 881 595 622 69l
Fire department:
No. of full-time certified firefighters 16 19 20 21 21 22 21 2]
No. of emergency responses 1,254 1,122 1,143 1,189 1,043 1,096 1,155 1,372
No.oftransports 622 521 621 651 562 622 645 675
No. of fires extinguished/alarms 632 601 522 538 481 474 460 697
No. of inspections 326 412 435 476 480 462 495 539
Building, zoning:
No. of building permits issued 1,049 998 906 784 812 800 883 914
No. ofbuilding inspections conducted 2,214 2,581 2,039 1,771 1,579 1,728 1,931 2,176
Leisure services:
No. of Spring Classes -- -- 8 8 10 10 10 10
No. of Summer Classes -- -- 4 5 4 4 4 4
No. of Movies -- -- 4 4 3 3 3 3
Business-Type Activities
Water:
No. of customers 4,612 4,722 4,968 4,983 4,982 5,019 4,996 5,037
Average daily consumption 2.782 mg 2349 mg 2351 mg 2.175 mg 2.175 mg 2.698 mg 2.550 mg 2.454 mg
Sources: Various Village departments
Note: The Village began to report this information in fiscal year 2006, as prior information is not available.
* The number is much lower than the year before due to increased number of reserve officers to cover for the full-time officers
that left the deparhnent during the FY 2012.
102
VILLAGE OF TEQUESTA, FLORIDA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST EIGHT FISCAL YEARS
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013
Governmental Activities
General government:
Municipal center 0 0 1 1 1 1 1 1
Public safety
Police:
No. of stations 1 1 1 1 1 1 1 1
No. of patrol units 12 12 7 9 15 15 11 10
Fire:
No. of stations 1 1 1 1 1 1 1 1
No. of ambulances 2 2 2 2 3 3 3 3
No. of pumpers 3 3 2 2 3 3 3 3
Transportation:
Miles of street lane miles 48 43 43 *24 24 24 24 24
No. of bridges 1 1 1 1 1 1 1 1
Leisure services
No. of parks 3 3 3 4 4 5 5 5
No. of park acreage 48 48 48 50 53 54 54 54
No. of playgrounds 3 3 2 2 2 2 2 2
No. of baseball/softball diamonds 3 3 3 3 3 3 3 3
No. of skate-parks 1 1 1 1 1 1 1 1
Business-type activities:
Water:
Miles of water mains 50 75 72 72 73 72 72 73
No. of fire hydrants 550 430 430 430 430 430 430 433
Storage capacity (thousands of gallons) 3,250 3,250 3,250 3,250 3,250 3,250 3,250 2,750
Sources: Various Village departments
Note: The Village began to report this information in fiscal year 2006, as prior information is not available.
* This report is presenting the revised method in calculating the miles of street lane
103
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� �. � � - .�►.� k � � � � � � i�'�..� � �'�,.�s � �.�
CUM
ACCOUNTANTS ADVISORS
INDEPENDENT AUDITORS' 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 Gove�ninent
Auditing Standa�ds issued by �rhe 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 (the Village), as of and for the
fiscal year ended September 30, 2013 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 21, 2014.
I�zter�zal Cont�°ol over Financial Repo��ting
In planning and performing our audit of the financial statements, we considered the Village's
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions 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 deficieizcy in inte�nal contr-ol 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 mate�ial 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 desig�ned to identify all deficiencies in internal control that might be
material weaknesses or significarnt deficiencies. Given these limitattons, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses m�ay exist that have not been identified.
� 104
M�RCUM
MEMBER
Marcum uP 525 Okeechobee Boulevard Suite 750 West Palm Beach, Florida 33401 Phone 561.653.7300 Fax 561.653.7301 ma1'CUmllp.com
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village's financial statements are
free from 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 determination of financial statement amounts. 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.
PuYpose 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 Village's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Gove�nment Auditing Standa�ds in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
`�iC���. «P
West Palm Beach, FL
March 21, 20 l 4
105
CUM
ACCOUNTANTS ADVISORS
MANAGEMENT LETTIER IN ACCORDANCE WITH THE RULES OF THE
AUDITOR GENERAL OF THE STATE OF FLORIDA
To The Honorable Mayor, Village Council and Village Manager
Village of Tequesta, Florida
We have audited the financial staternents of the Village of Tequesta, Florida, as of and for the
fiscal year ended September 30, �Ol 3, and have issued our report thereon dated March 2l . 2014.
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 Govef•n��ic�i�t Aafditirrg
Standai•ds, issued by the Compt�roller General of the linited States; and Chapter 10.5�0, Rules of
tl�e Florida Auditor General. We have issued our Independent Auditors' Report on Internal
Control over Financial Reporting and Conlpliance and Other iVlatters Based on an Audit of the
Financia] Statements Performed in Accordance with Go>>e�°ni�ient Azrditing Standards.
Disclosures in �hat report, wl�ich is dated March 21. 2Q14. should be considered in conjunction
�� :ti� ��":s ��?a��a��.?:�ez�� '.'c;tte:
�.:1uI�'C':a:i�, �rU?" 2ii.:�ii �1�^.S COI1C"t[I�':2G :;1 a�a;OI'CI&i1C� �ilt[1 L1 J.?��.�i', t�iI�ZS Gi t�lz :-"�il�i'ln�
General, which governs the condizct of local goverm�nental entity audits performed in the Sta�e of
Florida. This letter includes the following infonnation, which is not included in the
aforementioned auditors' reports �r schedule:
➢ Section 10.554(1)(i)l ., Rules of the Auditor General, requires t11at we determine whetl�er or
not corrective actions have be�en taken to address findings and recommendations made in the
preceding annual financial audit report. �l�ere were r,o �n�i1��s �?r recon�rnendatiol�s reported
in the preceding annual financial report. �
➢ Section 10.�54( l)(i)2., Rules of the Auditor General, requires our audi� tc� include a review of
the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds.
In com�ection with our audit, we determined that the Vi11a�e of Tequesta complied with
Sect�ion 218.415, Florida Statutes.
y Section 10.554(1)(i)3., Rules of the Auditor General, requires that ���e address in the
mana�ement letter any recommendations to improve financial manaQement. In connection
with our audit, we did not have any such recominendations. �
% Section l 0.554(1)(i)4._ Rules of the Auditor General, requires that we address noncompliance
with provisions of contracts or grant agreei�nents, or abuse, that have occurred, or are likely to
have occuired, that have an Effect on the financial statements that is less than material but
which wan the attention of those charaed «�ith governance. In connection ��°ith our audit.
we did not have any such �indin�s. �
� 106
MN�CUM
M E M B E R
Marcum uP 525 Okeechobee Boulevard Suite 750 West Palm Beach, Floritla 33401 Phone 561.653.7300 Fax 561.653.7301 me1'CUmlIp.COm
➢ Section 10.554(1)(i)5., 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 inanagement 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.
➢ Section l 0.554(1)(i}6.a., Rules of the Auditor General, requires a statement be included as to
whether or not the local governmental entity has met one or more of the conditions described
in Section 2l 8.503(1), Florida Statutes, and identification of the specific condition(s) met. In
connection with our audit, we determined that the Village of Tequesta did not meet any of
the conditions described in Section 218.503( l), Florida Statutes.
➢ Section 10.554(1)(i)6.b., Rules of the Auditor General, requires that we determine whether
the annual financia] report for the Village of Tequesta for the fiscal year ended September 30,
2013, filed with the Florida Department of Financial Services pursuant to Section
218.32( l)(a), Florida Statutes, is in agreement with the annual financial audit report for the
fiscal year ended September 30, 2013. In connection with our audit, we determined that
these two reports were in agreement.
➢ Pursuant to Sections 10.554(l )(i)6.c. and 10.556(7), Rules of the Auditor General, we
applied financial condition assessment procedures. It is management's responsibility to
monitor the Village of Tequesta 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. The assessment was done as of the fiscal year end.
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and Florida House of Representatives, the Florida
Auditor General, federal and other granting agencies, and applicable management, and is not
intended to be and should not be used by anyone other than these specified parties.
, `�a�,�,c. LGP
West Palm Beach, FL
March 21, 2014
107