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CAFR_FY Ending_09-30-2013 VILLAGE OF TEQUESTA, FLORIDA Naturally Beautiful Comprehensive Annual Financial Report Fiscal Year Ending September 30, 2013 VILLAGE OF TEQUESTA COUNCIL MEMBERS 2013 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 Letter of Transmittal .............................................................................................................. i-v Certificate of Achievement for Excellence in Financial Reporting ....................................... vi Organization Chart ................................................................................................................ vii List of Principal Officials ..................................................................................................... viii II. FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT ........................................................................... 1-3 MANAGEMENT’S DISCUSSION AND ANALYSIS ..................................................... 4-16 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position .................................................................................................17 Statement of Activities .....................................................................................................18 Fund Financial Statements Balance Sheet – Governmental Funds ..............................................................................19 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .....................................................................................................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 TEQUESTA, 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 – Nonmajor 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 Principal Property 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 Per Capita ............................................................................................................................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 Government Auditing Standards .......... 104-105 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida .......................................................................................................... 106-107 Page Intentionally Left Blank INTRODUCTORY SECTION No Text No Text No Text No Text No Text vi vii VILLAGE OF TEQUESTA, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2013 viii 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 FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT Marcum LLP n 525 Okeechobee Boulevard n Suite 750 n West Palm Beach, Florida 33401 n Phone 561.653.7300 n Fax 561.653.7301 n marcumllp.com 1 INDEPENDENT AUDITORS' REPORT To The Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida (the Village) as of and for the 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 for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 2 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 Deferred 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. Other Matters Required Supplementary Information 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 Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The combining and individual fund 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. 3 The combining and individual fund financial statements and schedules are the responsibility 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 Standards 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. West Palm Beach, Florida March 21, 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) Management’s Discussion and Analysis 2013 4 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 Highlights  The assets and deferred outflows of resources of the Village of Tequesta exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $33,428,198 (net position). Of this amount, $8,420,335 (unrestricted 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 and/or 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. Management’s Discussion and Analysis 2013 5 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 (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village 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. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-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 Management’s Discussion and Analysis 2013 6 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-type 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 information 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. Management’s Discussion and Analysis 2013 7 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 $13,852,533 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 approximately $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. 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. Village of Tequesta Net Position Governmental Activities Business-type Activities Total 2013 2012 2013 2012 2013 2012 Current and other assets $ 4,878,984 $ 5,472,092 $ 5,728,854 $ 5,295,709 $10,607,838 $10,767,801 Capital assets, net $13,039,737 $13,617,847 $19,395,803 $20,221,328 $32,435,540 $33,839,175 Total assets $17,918,721 $19,089,939 $25,124,657 $25,517,037 $43,043,378 $44,606,976 Total deferred outflows of resources - - $ 324,834 $347,300* $ 324,834 $347,300* Long-term liabilities outstanding $ 3,455,442 $ 3,694,691 $5,711,390 $6,010,761 $9,166,832 $ 9,705,452 Other liabilities $ 447,629 $ 483,752 $ 162,436 $ 249,942 $ 610,065 $ 733,694 Total liabilities $ 3,903,071 $ 4,178,443 $5,873,826 $6,260,703 $9,776,897 $10,439,146 Total deferred inflows of resources $ 163,117 $ 229,672* - - $163,117 $ 229,672* Net position Net investment in capital assets $10,261,476 $10,591,778 $14,167,067 $14,718,841 $24,428,543 $25,310,619 Restricted $ 579,320 $ 579,809 $ 579,320 $ 579,809 Unrestricted $ 3,011,737 $ 3,510,237 $ 5,408,598 $ 4,884,793 $ 8,420,335 $ 8,395,030 Total net position $13,852,533 $14,681,824 $19,575,665 $19,603,634 $33,428,198 $34,285,458 * Restated to include the effects of deferred inflows and outflows per GASB Statement 65. Management’s Discussion and Analysis 2013 8 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. 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 ‐ 10,000,000 20,000,000 30,000,000 capital assets Restricted Unrestricted 2012 2013 VILLAGE OF TEQUESTA Net Position, September 30, 2012 and 2013 Village of Tequesta Changes in Net Position Governmental Business-type Activities Total Activities Activities 2013 2012 2013 2012 2013 2012 Revenues: Program Revenues: Charges for Services $ 1,929,223 $2,084,685 $4,824,690 $5,247,543 $ 6,753,913 $ 7,332,228 Operating Grants & Contributions 95,145 60,260 - - 95,145 60,260 Capital Grants & Contributions - 119,200 - - - 119,200 General Revenues: - - Ad valorem Taxes 4,339,215 4,268,732 - - 4,339,215 4,268,732 Other Taxes 1,266,929 1,235,941 - - 1,266,929 1,235,941 Franchise fees on gross receipts 380,160 393,734 - - 380,160 393,734 Unrestricted intergovernmental 735,924 718,277 - - 735,924 718,277 Unrestricted investment earnings 22,316 49,173 20,727 30,448 43,043 79,621 Other Miscellaneous 77,390 99,072 37,017 30,801 114,407 129,873 Total Revenue $ 8,846,302 $9,029,074 $4,882,434 $5,308,792 $13,728,736 $14,337,866 Management’s Discussion and Analysis 2013 9 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 funds 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 Government, Public Safety, Transportation and Leisure Services. The net cost shows the extent to which the Village’s general revenues support each of the Village’s programs. 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 million towards this cost and the remainder was financed through general revenues ($6.8 million) and the use of excess funds. Village of Tequesta Changes in Net Position Governmental Business-type Activities Total Activities Activities 2013 2012 2013 2012 2013 2012 Expenses: General government 1,642,948 1,629,115 - - 1,642,948 1,629,115 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 640,513 635,110 - - 640,513 635,110 Interest on long-term debt 135,204 146,868 - - 135,204 146,868 Water utility services 4,204,955 4,017,097 4,204,955 4,017,097 Stormwater services 221,283 207,526 221,283 207,526 Refuse & recycling 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) (27,969) 615,532 (857,260) 124,690 Net position - beginning 10/01 $4,681,824 $15,172,666 $19,603,634 $18,988,102 $34,285,458 $34,160,768 Net position - ending 9/30 $13,852,533 $14,681,824 $19,575,665 $19,603,634 $33,428,198 $34,285,458 Management’s Discussion and Analysis 2013 10 The following is a comparative chart of revenues by source for governmental activities for fiscal year 2013 and 2012. Management’s Discussion and Analysis 2013 11 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 prior year. $‐ $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Water Utility Refuse & Recycling Stormwater Utility Total Expenses/Revenues ‐Business Type Activities Revenue Expenses In Thousands $‐ $1,000 $2,000 $3,000 $4,000 $5,000 Charges for Services Non‐operating Revenues by Source ‐Business Type Activities in Thousands FY 2013 &FY 2012 Management’s Discussion and Analysis 2013 12 Financial Analysis of the Village’s Funds As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds: The focus of the Village’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to 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, restricted or assigned to indicate that it is 1) not in spendable form ($332,442), 2) restricted for a particular purpose ($575,287) or assigned for a particular purpose ($1,000,000). ‐ 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Unassigned Assigned Restricted Nonspendable. 2012 2013 General Fund Components of Fund Balance September 30, 2012 and 2013 Management’s Discussion and Analysis 2013 13 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 Fund 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 fund 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 from 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 amount of General Fund revenue by type, their percent of the total and the amount of change compared to last fiscal year are shown in the following schedule: General Fund Revenues –by Source 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. GENERAL FUND REVENUES Change Revenue Sources 2013 % of Total $ % 2012 Taxes $4,339,215 49.2% $70,483 1.7% $4,268,732 Other taxes 1,266,929 14.4% 30,988 2.5% 1,235,941 Intergovernmental 752,728 8.5% (3,064) (0.4%) 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 0.2% (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 Management’s Discussion and Analysis 2013 14 Expenditures in the General Fund are shown in the following schedule: 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 streetlights (22%) and an increase in landscape maintenance (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. GENERAL FUND Expenditures by Function Change Function 2013 % of Total $ % 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% 75,126 10.4% 725,833 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 Total expenditures $9,297,822 100% (116,290) (1.2%) $9,414,112 PROPRIETARY FUNDS Change in Operating Income and Net Position Operating Income (Loss) Change 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 Management’s Discussion and Analysis 2013 15 General Fund Budgetary Highlights The difference between the original and final amended General fund budget in total 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 machinery and equipment. During fiscal year ending September 30, 2013, the Village disposed of $2,169,020 of fully depreciated capital assets. These items were mostly obsolete items that were sold at public auction. Additional information on the Village’s capital assets can be found in Note 3 D., Capital Assets, starting on page 46 of this report. Long-term 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. Governmental Business 2013 Capital 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 $13,039,737 $19,395,803 $32,435,540 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 $9,705,452 Management’s Discussion and Analysis 2013 16 Economic Factor and Next Year’s Budgets and Rates The following economic factors currently affect the Village of Tequesta and were considered in developing the 2013-2014 fiscal year budget.  The Village Council’s decision to raise the millage rate from 5.7671 mills to 6.0500 and an increase in property values will result in an increase in tax revenues. The Village is anticipating that property values will continue to rise.  Interest rates remain low as the federal funds rate is expected to be unchanged until unemployment rate hits 6.5%, which will continue to affect investment earnings.  Revenues from sales taxes continue to be flat and current trends are not predicting any immediate change unless consumer confidence increases.  There is some indication that the housing market and new home construction is beginning to improve.  Four year recovery from the “Great Recession” has created economic uncertainty.  The Village continues to work on the annexation of surrounding properties, however, the Village was not successful with annexation attempts in fiscal year 2013.  Headline CPI is expected to be around 2%.  Economic and job growth isn’t expected to gain significant altitude until 2014/2015.  The Village of Tequesta’s water rates increased 1.33% on October 1, 2013. Requests for Information This financial report is designed to provide a general overview of the Village of Tequesta’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Village of Tequesta, Finance Department, 345 Tequesta Drive, Tequesta, Florida 33469. Page Intentionally Left Blank BASIC FINANCIAL STATEMENTS Business- Governmental type Activities Activities Total ASSETS Cash and cash equivalents 3,807,641$ 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 237,368 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$ VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2013 The accompanying notes are an integral part of these financial statements. 17 Ch a r g e s O p e r a t i n g fo r G r a n t s a n d G o v e r n m e n t a l B u s i n e s s - t y p e T o t a l Fu n c t i o n s / P r o g r a m s E x p e n s e s S e r v i c e s C o n t r i b u t i o n s A c t i v i t i e s A c t i v i t i e s Pr i m a r y g o v e r n m e n t : G o v e r n m e n t a l a c t i v i t i e s : G e n e r a l g o v e r n m e n t 1 , 6 4 2 , 9 4 8 $ 6 9 5 , 8 0 1 $ - - $ ( 9 4 7 , 1 4 7 ) $ - - $ ( 9 4 7 , 1 4 7 ) $ P u b l i c s a f e t y 6 , 2 0 7 , 8 6 6 1 , 1 4 2 , 5 9 3 8 4 , 1 9 5 ( 4 , 9 8 1 , 0 7 8 ) - - ( 4 , 9 8 1 , 0 7 8 ) T r a n s p o r t a t i o n 1 , 0 4 9 , 0 6 2 4 , 4 8 0 - - ( 1 , 0 4 4 , 5 8 2 ) - - ( 1 , 0 4 4 , 5 8 2 ) L e i s u r e s e r v i c e s 6 4 0 , 5 1 3 8 6 , 3 4 9 1 0 , 9 5 0 ( 5 4 3 , 2 1 4 ) - - ( 5 4 3 , 2 1 4 ) I n t e r e s t o n l o n g - t e r m d e b t 1 3 5 , 2 0 4 - - - - ( 1 3 5 , 2 0 4 ) - - ( 1 3 5 , 2 0 4 ) T o t a l g o v e r n m e n t a l a c t i v i t i e s 9 , 6 7 5 , 5 9 3 1 , 9 2 9 , 2 2 3 9 5 , 1 4 5 ( 7 , 6 5 1 , 2 2 5 ) - - ( 7 , 6 5 1 , 2 2 5 ) B u s i n e s s - t y p e a c t i v i t i e s W a t e r 4 , 2 0 4 , 9 5 5 4 , 0 1 8 , 7 5 5 - - - - ( 1 8 6 , 2 0 0 ) ( 1 8 6 , 2 0 0 ) S t o r m w a t e r u t i l i t y 2 2 1 , 2 8 3 3 2 3 , 5 1 3 - - - - 1 0 2 , 2 3 0 1 0 2 , 2 3 0 R e f u s e a n d r e c y c l i n g 4 8 4 , 1 6 5 4 8 2 , 4 2 2 - - - - ( 1 , 7 4 3 ) (1,743) T o t a l b u s i n e s s - t y p e a c t i v i t i e s 4 , 9 1 0 , 4 0 3 4 , 8 2 4 , 6 9 0 - - - - ( 8 5 , 7 1 3 ) (85,713) T o t a l p r i m a r y g o v e r n m e n t 1 4 , 5 8 5 , 9 9 6 $ 6 , 7 5 3 , 9 1 3 $ 9 5 , 1 4 5 $ ( 7 , 6 5 1 , 2 2 5 ) ( 8 5 , 7 1 3 ) ( 7 , 7 3 6 , 9 3 8 ) Ge n e r a l r e v e n u e s : Ad v a l o r e m t a x e s 4 , 3 3 9 , 2 1 5 - - 4 , 3 3 9 , 2 1 5 Ut i l i t y t a x e s 6 4 4 , 4 7 7 - - 6 4 4 , 4 7 7 Co m m u n i c a t i o n s e r v i c e t a x 3 4 4 , 2 0 4 - - 3 4 4 , 2 0 4 In s u r a n c e p r e m i u m t a x e s 1 9 4 , 1 7 3 - - 1 9 4 , 1 7 3 Bu s i n e s s t a x e s 8 4 , 0 7 5 - - 8 4 , 0 7 5 Fr a n c h i s e f e e s b a s e d o n g r o s s r e c e i p t s 3 8 0 , 1 6 0 - - 3 8 0 , 1 6 0 Un r e s t r i c t e d i n t e r g o v e r n m e n t a l r e v e n u e s 7 3 5 , 9 2 4 - - 7 3 5 , 9 2 4 Un r e s t r i c t e d i n v e s t m e n t e a r n i n g s 2 2 , 3 1 6 2 0 , 7 2 7 4 3 , 0 4 3 Mi s c e l l a n e o u s r e v e n u e s 7 7 , 3 9 0 3 7 , 0 1 7 114,407 To t a l g e n e r a l r e v e n u e s 6 , 8 2 1 , 9 3 4 5 7 , 7 4 4 6 , 8 7 9 , 6 7 8 C h a n g e i n n e t p o s i t i o n ( 8 2 9 , 2 9 1 ) ( 2 7 , 9 6 9 ) ( 8 5 7 , 2 6 0 ) Ne t p o s i t i o n - b e g i n n i n g 14 , 6 8 1 , 8 2 4 1 9 , 6 0 3 , 6 3 4 3 4 , 2 8 5 , 4 5 8 Ne t p o s i t i o n - e n d i n g 13 , 8 5 2 , 5 3 3 $ 1 9 , 5 7 5 , 6 6 5 $ 3 3 , 4 2 8 , 1 9 8 $ Pr o g r a m R e v e n u e s Pr i m a r y G o v e r n m e n t Ne t ( E x p e n s e ) R e v e n u e a n d Ch a n g e s i n N e t A s s e t s VI L L A G E O F T E Q U E S T A , F L O R I D A ST A T E M E N T O F A C T I V I T I E S FO R T H E F I S C A L Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 1 3 Th e a c c o m p a n y i n g n o t e s a r e a n i n t e g r a l p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s . 18 Other Total General Governmental Governmental Fund Funds Funds ASSETS Cash and cash equivalents 3,643,882$ 163,759$ 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 Total liabilities 447,629 -- 447,629 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 163,117 -- 163,117 Total deferred inflows of resources 163,117 -- 163,117 FUND BALANCES Nonspendable: Inventories 38,397 -- 38,397 Prepaid Items 106,184 -- 106,184 Restricted: Debt Service 310,300 -- 310,300 Building 214,987 -- 214,987 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 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$ VILLAGE OF TEQUESTA, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2013 Total liabilities, deferred inflows of resources and fund balances The accompanying notes are an integral part of these financial statements. 19 Total Total General Nonmajor 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$ VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 The accompanying notes are an integral part of these financial statements. 20 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 useful 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)$ VILLAGE OF TEQUESTA, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 The accompanying notes are an integral part of these financial statements. 21 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$ Business-type Activities VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2013 The accompanying notes are an integral part of these financial statements. 22 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$ Business-type Activities VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 The accompanying notes are an integral part of these financial statements. 23 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$ VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Business-type Activities The accompanying notes are an integral part of these financial statements. 24 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$ VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2013 The accompanying notes are an integral part of these financial statements. 25 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$ VILLAGE OF TEQUESTA, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 The accompanying notes are an integral 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 27 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. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other non-exchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. B. REPORTING ENTITY The Village of Tequesta, Florida is a municipal corporation organized in 1957 pursuant to Special Act 57-1915, Laws of Florida. The Village has a Council-Manager form of government governed by a five (5) member Council elected at large. Each year, the Council appoints one of its members Mayor, to serve at the pleasure of Council for one year. The Village’s major operations include public safety (police, fire rescue/EMS, building and code enforcement), transportation (streets and roads), leisure services (culture and recreation), water, stormwater, 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 OF PRESENTATION – GOVERNMENT-WIDE FINANCIAL STATEMENTS While separate government-wide and fund financial statements are presented, they are interrelated. Both sets of statements distinguish between the governmental and business- type activities of the Village. The governmental activities column incorporates data from governmental funds while business-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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. BASIS OF PRESENTATION – GOVERNMENT-WIDE FINANCIAL STATEMENTS (CONTINUED) 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 OF PRESENTATION – FUND FINANCIAL STATEMENTS The fund financial statements provide information about the Village’s funds, including its fiduciary funds. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. BASIS OF PRESENTATION - FUND FINANCIAL STATEMENTS (CONTINUED) The Village reports the following major enterprise fund: The Water 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 financial statements. Balances between the funds included in governmental activities are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in the business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as 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. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED) 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 governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. BUDGETARY INFORMATION 1. Budgetary Basis of Accounting Annual budgets are adopted on a basis consistent with generally accepted accounting principles. The appropriated budget is prepared by fund, function and department. Per established procedures approved by the Village Council, the designated budget officer may approve a department head‘s request to transfer appropriations between accounts, within a department. Although the Village Council requires all inter-department budget amendments to go before the Village Council 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) G. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION/FUND BALANCE (CONTINUED) 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 33 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 useful lives: Buildings 20 – 40 years Improvements 20 – 50 years Infrastructure 20 – 50 years Machinery and equipment 5 – 15 years Intangibles 5 – 20 years VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 34 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 qualifies 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 35 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. REVENUES AND EXPENDITURES/EXPENSES 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. 2. Property Taxes Property tax collections are governed by Chapter 197, Florida Statutes. Property taxes are based on assessed property value at January 1st as determined by the Palm Beach County Property Appraiser. The Village 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 1st 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 subject 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 37 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 OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets and 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 38 NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “capital assets used in governmental activities are not financial resources and, therefore are not reported in the funds.” The amount of this reconciling element is $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 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 39 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS A. CASH DEPOSITS WITH FINANCIAL INSTITUTION Custodial credit risk-deposits. In the case of deposits, this is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. All of the Village’s deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The pledging level may range from 25% to 200% of the average monthly balance of public deposits depending upon the depository’s financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any potential losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. At September 30, 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 $1 per share. As a participant, the Village invests in a pool of investments owning a share of the pool, not the underlying securities. The fair value of the position in the Florida PRIME is equal to the value of the pool shares. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 40 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) B. INVESTMENTS (CONTINUED) The Fund B does not meet the requirements of an SEC 2a-7 like fund and is accounted for as a fluctuating NAV pool. That is, accounting valuations reflect estimates of the market value of securities rather than their amortized cost. Due to the lack of an actively traded market for Fund B securities, the “market value” is an estimate of current liquidation value that has been determined through a collaborative process among various pricing experts and sources in the marketplace. As of September 30, 2013, the fair value factor for Fund B was 1.13262284. Fund B is not subject to participant withdrawal requests. Distributions from Fund B, as determined by the SBA, are effected by transferring eligible cash or securities to the Florida PRIME, consistent with the pro rata allocation of pool shareholders of record at the creation of Fund B. One hundred percent of such distributions from Fund B are available as a liquid balance within the Florida PRIME. The investments in the Florida PRIME and Fund B are not insured by FDIC or any other governmental agency. As of September 30, 2013, the Village of Tequesta had the following demand deposits and investments: Weighted Average Credit Percent Deposits and Investments Fair Value Maturity Rating Distribution Demand deposits 8,915,928$ 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 41 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) B. INVESTMENTS (CONTINUED) 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 Safety Pension Trust Fund had the following demand deposits and investments: Percent Fair Value Distribution Cash 32,934$ 0.34% Short-Term Investments 288,507 3.01% Mutual Funds - Equities 3,553,911 37.03% Mutual Funds - Fixed income 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 42 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 P1. 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 market 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 party. The Plan’s investment policy limits exposure to this risk by:  Requiring all securities to be held with a third party custodian.  Requiring security transactions between a broker/dealer and the custodian involving the purchase or sale of securities by transfer of money or securities are made on a “delivery vs. payment” basis to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the Transaction. At September 30, 2013, the investments of the Police and Firefighters’ Pension Trust Fund were in compliance with the investment policy. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 43 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 Employees’ Pension Trust Fund had the following demand deposits and investments: Weighted Average Credit Percent Fair Value Maturity Rating Distribution Cash 53$ 0.00% Short Term Investments 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 Ba1 1.42% Bonds 79,519 Baa1 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 44 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 fund.  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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 45 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) B. INVESTMENTS (CONTINUED) 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. RECEIVABLES 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 uncollectibles (17,280) (2,879) -- (20,159) Net Total Receivables 281,369$ 405,897$ 7,400$ 694,666$ VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 46 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: Beginning Ending Balance Additions Deductions Balance Governmental Activities Capital assets not being 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 being depreciated: Buildings 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 equipment 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 buildings (915,645) (113,712) 123,322 (906,035) Infrastructure (292,224) (107,595) -- (399,819) Machinery and equipment (4,049,783) (242,467) 1,722,761 (1)(2,569,489) Intangibles (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 Activities Capital Assets, Net 13,617,847$ (578,110)$ --$ 13,039,737$ (1) $33,144 was reclassified for fully depreciated network software from machinery and equipment to intangibles. Depreciation expense was charged to the functions/programs of the governmental activities of the primary Village as follows: Governmental Activities: General government 155,987$ Public safety 328,200 Transportation 168,892 Leisure services 78,575 Total Depreciation Expense - Governmental Activities 731,654$ VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 47 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) D. CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Additions Deductions Balance Business-Type Activities Capital assets not being 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: Buildings 979,512 -- -- 979,512 Improvements other than buildings 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 buildings (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$ VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 48 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 49 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 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 50 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) 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: Police General Employees' Firefighters' Officers' Pension Fund Valuation 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 Remaining amortization period 20 20 N/A Asset valuation method Five year smoothing Five year smoothing Five year smoothing Actuarial assumptions: Investment rate of return* 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 of living adjustments N/A N/A N/A Public Safety Officers' Pension Fund 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 contribution (ARC) 378,155$ 145,147$ 182,294$ Interest on net pension asset (NPA) (10,700) (9,935) (11,091) Adjustment to ARC (15,550) (14,931) (17,384) Annual pension cost 383,005 150,143 188,587 Contributions made 410,144 169,599 182,294 (Increase) decrease in NPA (27,139) (19,456) 6,293 Net Pension Asset - Beginning (142,665) (132,471) (147,878) Net Pension Asset - Ending (169,804)$ (151,927)$ (141,585)$ VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 51 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) 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: Annual Percentage Net Pension Pension of APC Obligation Fiscal Year Ending Cost (APC) Contributed (Asset) Firefighters' Retirement System September 30, 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) September 30, 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) Three-Year Trend Information Funded Status and Funding Progress The funded status of the Plans as of October 1, 2012, the most recent actuarial valuation date, is as follows: Actuarial Accrued UAAL as Actuarial Liability Unfunded a % of Value (AAL) - AAL Funded Covered Covered Assets Entry Age (UAAL) Ratio Payroll Payroll (a) (b) (b) - (a) (a) / (b) ( c) ((b - a) / c) Public Safety Pension Fund: Fire 5,291,259$ 6,708,023$ 1,416,764$ 78.9% 1,427,247$ 99.3% 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% *For 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 52 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 53 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) 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 firefighter 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 beneficiaries 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. The current employer contribution rate for fiscal year ending September 30, 2013 is 19.97% for police officers and 25.91% for firefighters. 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 $184,580 for fiscal year ending September 30, 2013. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 54 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) Village of Tequesta Public Safety Employees’ Pension Plan (PSEPP) (continued) The Firefighters’ Pension Trust Fund (part of the PSEPP) does not issue separate stand- alone financial statements. Included below are the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position as of and for the year ended September 30, 2013. Assets Cash and cash equivalents 227,897$ Investments 6,577,414 Contributions 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$ STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2013 FIREFIGHTERS' PENSION TRUST FUND VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 55 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) Village of Tequesta Public Safety Employees’ Pension Plan (PSEPP) (continued) ADDITIONS Contributions 518,133$ Investment income 627,648 Total Additions 1,145,781 DEDUCTIONS Refunds of contributions 53,637 Operating expenses 19,035 Total Deductions 72,672 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$ FIREFIGHTERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 56 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. Assets Cash and cash equivalents 93,544$ Investments 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$ POLICE OFFICERS' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2013 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 57 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) Village of Tequesta Public Safety Employees’ Pension Plan (PSEPP) (continued) ADDITIONS Contributions 243,100$ Investment income 243,887 Total Additions 486,987 DEDUCTIONS Refunds of contributions 15,737 Operating expenses 19,008 Total Deductions 34,745 Net Increase 452,242 Net Position Held in Trust for Pension Benefits Net Position - Beginning 2,330,512 Net Position - Ending 2,782,754$ POLICE OFFICERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Village of Tequesta General Employees’ Pension Plan (GEPP) Plan Description 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 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 58 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) or (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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 59 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. Assets Cash and cash equivalents 60,434$ Investments 2,727,481 Contributions 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$ GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2013 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 60 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) F. PENSION OBLIGATIONS (CONTINUED) Village of Tequesta General Employees’ Pension Plan (GEPP) (continued) ADDITIONS Contributions 279,465$ Investment income 264,073 Total Additions 543,538 DEDUCTIONS Refunds of contributions 43,209 Operating expenses -- Total Deductions 43,209 Net Increase 500,329 Net Position Held in Trust for Pension Benefits Net Position - Beginning 2,316,593 Net Position - Ending 2,816,922$ GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 61 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 eligibility to make the election to participate in the Mandatory contribution portion of the Plan which will begin the first of the month following the end of the election window. This election is irrevocable and remains in force until the Employee terminates employment 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 (OPEB) 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 62 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 1, 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/$6,000 deductible for family for exempt employees and employees represented by the IAFF and PBA collective bargaining units. Subsequently, the two retirees that were currently purchasing health insurance from the Village elected not to purchase the HDHP. In the current year, one retiree elected to participate in the HDHP while investigating other options. The Village considers this indicative that this retiree, as well as future retirees, will choose not to participate in the HDHP in the future. Under that assumption, the annual required contribution (ARC) for fiscal year 2013 is zero reflecting no current cost of benefits. The Village of Tequesta has less than 100 employees and has experienced low participation in prior periods (i.e., no participation in FY 2012 and one participant in FY 2013). The Village considered amortizing the current unfunded liability in one year, effectively allowing the Village to write the existing liability off in the current year. However, the Village decided to take a conservative approach by monitoring participation over the next two years before determining whether to permanently write off the liability. Based upon these assumptions, the end of the year net OPEB obligation is determined to be as follows: Annual Required Contributions (ARC) --$ Contributions made -- Increase in the Net OPEB Obligation -- Net OPEB Obligation - October 1, 2012 176,000 Net OPEB Obligation - September 30, 2013 176,000$ VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 63 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 1, 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% Fiscal Annual Percentage of Annual Net OPEB Year End OPEB Cost OPEB Cost Contributed Obligation 2011 107,000$ 19% 176,000$ 2012 -- 0% 176,000 2013 -- 0% 176,000 Three-Year Trend Information H. CONSTRUCTION AND 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 64 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) H. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS (CONTINUED) 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 01, 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. RISK MANAGEMENT The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. While the Village cannot anticipate the areas in which potential claims may arise, 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. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 65 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) I. RISK MANAGEMENT (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 $635. There were no significant changes in insurance coverage from coverage in prior years. Settled claims have not exceeded the commercial coverage in any of the past three fiscal years. J. LEASE OBLIGATIONS Capital Leases The Village of Tequesta had no capital lease debt at September 30, 2013. However, the Village solicited bids to finance the purchase of a new fire pumper truck and entered into a capital lease agreement October 29, 2013. K. LONG-TERM LIABILITIES Promissory Notes The Village of Tequesta issues long-term debt to provide funds for the acquisition and construction of major capital facilities. Promissory notes have been signed for both governmental and business-type activities. These notes mature in 7 to 14 years and have interest rates from 3.685% to 4.96% per year. Notes outstanding at September 30, 2013 are as follows: VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 66 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) K. LONG-TERM LIABILITIES (CONTINUED) Promissory Notes (continued) Outstanding Signed Original Interest Final September 30, Promissory Notes Payable Date Borrowing Rate Maturity 2013 Government Activities Public Improvements/P.S. Building 9/13/2002 5,000,000$ 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 Total 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 $3,455,442 of which no portion of the outstanding debt was applicable to the limit. Changes in Long-Term Liabilities Changes in the Village of Tequesta’s long-term liabilities for the year ended September 30, 2013 are as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities: Note payable - 2002 3,026,070$ --$ 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$ VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 67 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) K. LONG-TERM LIABILITIES (CONTINUED) Changes in Long-Term Liabilities (continued) For governmental activities, the liability for compensated absences and any other postemployment benefit obligations is liquidated by the general fund. Beginning 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 For The Year Ending 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$ Governmental Activities Promissory Notes - VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 68 NOTE 3 – DETAILED NOTES ON ALL ACTIVITIES AND FUNDS (CONTINUED) K. LONG-TERM LIABILITIES (CONTINUED) Business-Type Activities For The Year Ending 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$ Business-Type Activities Promissory Notes - Total Primary Government Debt For The Year Ending 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$ Total Primary Government Debt 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 falls below the minimum target level because it has been used, essentially as a “revenue” source, as dictated by current circumstances, the policy provides for actions to replenish the amount to the minimum target level. Generally, replenishment is to occur within a three-year period. VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 69 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 Transfers 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$ Transfers In N. JOINT VENTURES The Village, in conjunction with six other municipalities, organized a consortium to provide mutual fire and emergency aid. The consortium is known as the Northern Area Mutual Aid Consortium (NAMAC). During 1999, the consortium purchased equipment and supplies as well as collected contributions. The consortium does not issue separate financial statements. The Village has not been obligated to contribute any funds to the consortium since its inception in 1999. Page Intentionally Left Blank REQUIRED SUPPLEMENTARY INFORMATION Variance with Final Budget 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 -- Fund balances-ending 3,225,511$ 3,222,188$ 3,641,163$ 418,975$ REQUIRED SUPPLEMENTARY INFORMATION - SCHEDULE OF BUDGET AND ACTUAL Budgeted Amounts VILLAGE OF TEQUESTA, FLORIDA GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 See note to budgetary comparison schedule. 70 71 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 budget is the budget in place at the start of the fiscal year, which includes all of the following The budget passed by the Village Council +Subsequent amendments made prior to the start of the fiscal year +Carryovers from the previous year (encumbrances) =Original budget The final 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 $71,955 were approved and adopted for the General Fund. Appropriations are legally controlled at the fund level and expenditures may not legally exceed budgeted appropriations at that level. Appropriations lapse at year end. Annual Village Contribution Fiscal Required Village Premium Tax Percentage Year Contribution Contribution Contribution Contributed Firefighters' Pension Fund 2008 201,074$ 127,844$ 70,455$ 98.6% 2009 211,458 143,079 70,455 101.0% 2010 342,571 279,911 70,455 102.3% 2011 322,793 252,561 70,455 100.1% 2012 334,518 335,449 70,455 121.3% 2013 378,155 339,690 70,455 108.5% Police Officers' Pension Fund 2008 85,371 87,240 33,130 141.0% 2009 88,769 81,539 33,130 129.2% 2010 130,820 102,069 33,130 103.3% 2011 135,996 102,971 33,130 100.1% 2012 170,367 170,534 33,130 119.5% 2013 145,147 136,469 33,130 116.8% General Employees' Pension Fund 2008 88,790 130,665 N/A 147.2% 2009 92,364 141,407 N/A 153.1% 2010 146,458 148,167 N/A 101.2% 2011 164,487 164,487 N/A 100.0% 2012 169,131 174,899 N/A 103.4% 2013 182,294 182,294 N/A 100.0% VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS - PENSIONS 72 Actuarial Accrued Actuarial Liability Unfunded UAAL as a % Actuarial Value of (AAL) - AAL Funded Covered of Covered Valuation Assets Entry Age* (UAAL)Ratio Payroll Payroll Date (a) (b) (b) - (a) (a) / (b) (c) ((b - a) / c) Public Safety Pension Fund (1): 10/01/03 1,966,148$ 1,610,963$ (355,185)$ 122.00% 1,339,667$ 26.5% 10/01/05 2,782,953 2,598,331 (184,622) 107.10% 1,650,403 11.2% 10/01/07 4,080,609 3,730,247 (350,362) 109.40% 1,931,871 18.1% 10/01/09 Fire 3,965,053 4,471,106 506,053 88.7% 1,434,855 35.3% Police 1,333,909 987,399 (346,507) 135.1% 749,835 -46.2% 10/1/2011 6,526,370 7,720,559 1,194,189 84.5% 2,171,363 55.0% Fire 4,754,263 6,034,582 1,280,319 78.8% 1,313,021 97.5% Police 1,772,107 1,685,977 (86,130) 105.1% 858,342 -10.0% 10/1/2012 Fire 5,291,259 6,708,023 1,416,764 78.9% 1,427,247 99.3% Police 2,079,888 1,887,237 (192,651) 110.2% 744,314 -25.9% Note: Separate information for fire and police was not available prior to the 10/01/09 valuation. (1) Through 10/1/07 the annual required contribution (ARC) was calculated using the aggregate actuarial cost method. Information in this schedule for those ears was calculated using the entry age actuarial cost method as a surrogate for the funding progress of the Plan. General Employees Pension Fund (2) 10/1/2007 1,026,897$ 764,571$ (262,326)$ 134.3 1,500,201$ -17.5% 10/1/2008 1,235,850 1,034,855 (200,995) 119.4 1,790,280 -11.2% 10/1/2009 1,465,279 1,341,518 (123,761) 109.2 1,890,529 -6.5% 10/1/2010 1,716,448 1,625,288 (91,220) 105.6% 1,858,451 -4.9% 10/1/2011 1,965,445 1,921,731 (43,714) 102.3% 1,902,093 -2.3% 10/2/2012 2,287,726 2,306,175 18,449 99.2% 1,994,337 0.9% (2) The annual required contribution (ARC) was calculated using the aggregate actuarial cost method. Information in this schedule is calculated using the entry age actuarial cost method as a surrogate for the funding progress of the Plan. VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS - PENSIONS 73 Unfunded (a) Actuarial Actuarial Actuarial Unfunded Accrued Actuarial Value of Accrued Actuarial Funded Covered Liability as of Valuation Date Assets Liability (AAL) Liability Ratio Payroll % of Covered October 1, 2009 --$ 484,000$ 484,000$ 0.00% 4,111,000$ 11.80% Note: See Note 3 G., Other Post Employment Benefit (OPEB) Obligations VILLAGE OF TEQUESTA, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS - OTHER POST EMPLOYMENT BENEFITS 74 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. Special Revenue 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 --$ --$ --$ --$ 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$ VILLAGE OF TEQUESTA, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2013 Capital Projects 75 Special Revenue 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 (Under) Expenditures 23,258 -- (78,210) (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$ Capital Projects 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 76 Variance with Final Budget 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)$ VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE SPECIAL LAW ENFORCEMENT TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 Budgeted Amounts 77 Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES --$ --$ --$ --$ 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$ --$ Excess (deficiency) of revenues over (under) expenditures Budgeted Amounts VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 78 Variance with Final Budget 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$ Budgeted Amounts VILLAGE OF TEQUESTA, FLORIDA BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 79 Page Intentionally Left Blank 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. 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$ VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2013 80 Total Nonmajor 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 (1,078) 102,670 Net Position - Beginning 2,350,273 122,345 2,472,618 Net Position - Ending 2,454,021$ 121,267$ 2,575,288$ 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 81 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 ACTIVITIES 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 (119,693) 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$ VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 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. 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: Corporate stocks 1,641,282 661,752 1,646,655 3,949,689 Corporate bonds -- -- 475,506 475,506 Government backed securities -- -- 290,113 290,113 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 35,129 Total Liabilities 29,519 15,044 11,599 56,162 NET POSITION Net position held in trust for pension benefits 6,810,903$ 2,782,754$ 2,792,102$ 12,385,759$ VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2013 83 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$ VILLAGE OF TEQUESTA, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 84 STATISTICAL SECTION This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends 85-89 Revenue Capacity 90-93 Debt Capacity 94-98 Demographic and Economic Information 99-100 Operating Information 101-103 These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place. Sources:Unless other wise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 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. STATISTICAL SECTION These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 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. 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Go v e r n m e n t a l A c t i v i t i e s N e t i n v e s t m e n t i n c a p i t a l a s s e t s 9 2 1 , 8 8 9 $ 1 , 7 8 8 , 7 4 9 $ 4 , 5 1 5 , 0 9 6 $ 6 , 6 7 9 , 8 5 5 $ 6 , 9 5 9 , 3 3 2 $ 7 , 3 3 0 , 8 9 7 $ 7 , 5 2 5 , 5 7 0 $ 1 0 , 7 3 0 , 2 5 6 $ 10,591,778 $ 10,261,476 $ R e s t r i c t e d - - - - 1 4 3 , 3 7 0 1 4 0 , 9 9 0 - - - - - - - - 579,809 579,320 U n r e s t r i c t e d 4 , 9 4 7 , 8 3 8 6 , 9 2 6 , 2 0 8 5 , 5 7 0 , 4 4 7 5 , 4 0 2 , 7 7 4 6 , 4 5 9 , 5 2 2 6 , 2 1 8 , 4 6 2 5 , 3 0 6 , 6 6 1 4,442,410 3,510,237 3,011,737 To t a l G o v e r n m e n t a l A c t i v i t i e s N e t P o s i t i o n 5, 8 6 9 , 7 2 7 $ 8 , 7 1 4 , 9 5 7 $ 1 0 , 2 2 8 , 9 1 3 $ 1 2 , 2 2 3 , 6 1 9 $ 1 3 , 4 1 8 , 8 5 4 $ 1 3 , 5 4 9 , 3 5 9 $ 1 2 , 8 3 2 , 2 3 1 $ 15,172,666 $ 14,681,824 $ 13,852,533 $ Bu s i n e s s - T y p e A c t i v i t i e s : N e t i n v e s t m e n t i n c a p i t a l a s s e t s 9 , 6 0 2 , 9 1 1 $ 1 0 , 8 1 5 , 1 5 1 $ 1 1 , 7 2 2 , 1 8 8 $ 1 4 , 5 1 3 , 5 0 0 $ 1 4 , 0 8 2 , 9 8 9 $ 1 3 , 7 1 3 , 5 2 5 $ 1 3 , 0 3 7 , 0 1 2 $ 1 4 , 6 7 3 , 0 4 6 $ 14,718,841 $ 14,167,067 $ R e s t r i c t e d 3 2 2 , 8 1 8 3 1 7 , 1 0 2 3 9 6 , 3 6 9 3 2 8 , 5 4 4 - - - - - - - - -- -- U n r e s t r i c t e d 5 , 9 0 1 , 6 2 4 4 , 6 0 4 , 4 6 3 4 , 8 6 7 , 9 0 5 3 , 0 4 6 , 2 2 9 3 , 5 8 1 , 5 1 2 3 , 9 9 7 , 2 7 1 4 , 9 7 5 , 3 1 8 4,315,056 4,884,793 5,408,598 To t a l B u s i n e s s - T y p e A c t i v i t i e s N e t P o s i t i o n 15 , 8 2 7 , 3 5 3 $ 1 5 , 7 3 6 , 7 1 6 $ 1 6 , 9 8 6 , 4 6 2 $ 1 7 , 8 8 8 , 2 7 3 $ 1 7 , 6 6 4 , 5 0 1 $ 1 7 , 7 1 0 , 7 9 6 $ 1 8 , 0 1 2 , 3 3 0 $ 18,988,102 $ 19,603,634 $ 19,575,665 $ Pr i m a r y g o v e r n m e n t : N e t i n v e s t m e n t i n c a p i t a l a s s e t s 1 0 , 5 2 4 , 8 0 0 $ 1 2 , 6 0 3 , 9 0 0 $ 1 6 , 2 3 7 , 2 8 4 $ 2 1 , 1 9 3 , 3 5 5 $ 2 1 , 0 4 2 , 3 2 1 $ 2 1 , 0 4 4 , 4 2 2 $ 2 0 , 5 6 2 , 5 8 2 $ 2 5 , 4 0 3 , 3 0 2 $ 25,310,619 $ 24,428,543 $ R e s t r i c t e d 3 2 2 , 8 1 8 3 1 7 , 1 0 2 5 3 9 , 7 3 9 4 6 9 , 5 3 4 - - - - - - - - 579,809 579,300 U n r e s t r i c t e d 1 0 , 8 4 9 , 4 6 2 1 1 , 5 3 0 , 6 7 1 1 0 , 4 3 8 , 3 5 2 8 , 4 4 9 , 0 0 3 1 0 , 0 4 1 , 0 3 4 1 0 , 2 1 5 , 7 3 3 1 0 , 2 8 1 , 9 7 9 8,757,466 8,395,030 8,420,335 To t a l G o v e r n m e n t a l A c t i v i t i e s N e t P o s i t i o n 21 , 6 9 7 , 0 8 0 $ 2 4 , 4 5 1 , 6 7 3 $ 2 7 , 2 1 5 , 3 7 5 $ 3 0 , 1 1 1 , 8 9 2 $ 3 1 , 0 8 3 , 3 5 5 $ 3 1 , 2 6 0 , 1 5 5 $ 3 0 , 8 4 4 , 5 6 1 $ 34,160,768 $ 34,285,458 $ 33,428,178 $ No t e : T h e V i l l a g e i m p l e m e n t e d G A S B S t a t e m e n t N o . 6 3 d u r i n g t h e f i s c a l y e a r e n d e d S e p t e m b e r 3 0 , 2 0 1 3 a n d u t i l i z e d t h e n e w t e r m i no l o g y f o r a l l y e a r s p r e s e n t e d . VI L L A G E O F T E Q U E S T A , F L O R I D A NE T P O S I T I O N B Y C O M P O N E N T LA S T T E N F I S C A L Y E A R S (A C C R U A L B A S I S O F A C C O U N T I N G ) 85 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Ex p e n s e s Go v e r n m e n t a l a c t i v i t i e s : Ge n e r a l g o v e r n m e n t 1 , 1 0 5 , 7 4 1 $ 1 , 3 6 1 , 0 1 3 $ 1 , 4 0 2 , 5 3 5 $ 1 , 3 9 1 , 6 5 4 $ 1 , 3 4 4 , 0 3 8 $ 1 , 5 0 1 , 3 4 4 $ 1 , 5 0 3 , 7 5 0 $ 1 , 5 9 1 , 5 7 5 $ 1 , 6 2 9 , 1 1 5 $ 1 , 6 4 2 , 9 4 8 $ Pu b l i c s a f e t y 4 , 1 3 8 , 3 7 4 4 , 6 9 1 , 0 6 3 5 , 5 7 7 , 2 4 3 5 , 6 3 4 , 8 3 4 5 , 7 8 4 , 2 4 5 5 , 8 0 7 , 4 7 7 6 , 3 1 3 , 8 3 5 5 , 9 8 9 , 3 5 7 6 , 2 1 0 , 3 6 5 6 , 2 0 7 , 8 6 6 Tr a n s p o r t a t i o n 8 0 4 , 5 2 3 6 5 6 , 1 5 8 8 3 7 , 4 4 1 7 6 6 , 2 2 6 7 3 6 , 8 4 4 7 7 4 , 9 6 6 8 4 3 , 9 6 0 8 5 7 , 4 5 6 8 9 8 , 4 5 8 1 , 0 4 9 , 0 6 2 Le i s u r e s e r v i c e s 4 5 8 , 6 5 9 6 0 5 , 7 4 5 7 5 6 , 2 2 4 5 5 9 , 5 8 3 5 3 9 , 4 5 0 6 3 9 , 5 9 0 7 1 0 , 6 8 5 6 3 5 , 6 7 1 6 3 5 , 1 1 0 6 4 0 , 5 1 3 In t e r e s t o n l o n g - t e r m d e b t 2 6 2 , 4 7 9 2 4 8 , 7 2 8 2 4 3 , 8 7 1 2 2 9 , 0 7 4 2 0 6 , 1 2 6 1 8 0 , 7 7 0 1 6 9 , 7 9 2 1 5 8 , 6 8 5 1 4 6 , 8 6 8 135,204 To t a l G o v e r n m e n t a l A c t i v i t i e s E x p e n s e s 6,7 6 9 , 7 7 6 7 , 5 6 2 , 7 0 7 8 , 8 1 7 , 3 1 4 8 , 5 8 1 , 3 7 1 8 , 6 1 0 , 7 0 3 8 , 9 0 4 , 1 4 7 9 , 5 4 2 , 0 2 2 9 , 2 3 2 , 7 4 4 9 , 5 1 9 , 9 1 6 9,675,593 Bu s i n e s s - t y p e a c t i v i t i e s : Wa t e r 3 , 9 7 5 , 7 6 6 4 , 0 2 6 , 0 2 7 4 , 1 8 7 , 2 5 7 4 , 1 3 9 , 7 8 4 3 , 7 6 0 , 4 2 6 3 , 9 0 7 , 9 5 0 3 , 9 8 9 , 5 1 7 3 , 8 2 9 , 3 3 0 4 , 0 1 7 , 0 9 7 4 , 2 0 4 , 9 5 5 St o r m w a t e r 1 5 5 , 5 3 7 1 4 2 , 7 8 8 1 9 8 , 9 9 3 1 8 8 , 7 0 9 2 1 5 , 1 6 3 2 2 6 , 4 9 8 2 2 3 , 4 2 1 1 9 4 , 3 3 1 2 0 7 , 5 2 6 2 2 1 , 2 8 3 Re f u s e a n d r e c y c l i n g 2 5 2 , 9 3 3 2 6 0 , 7 1 5 2 7 0 , 8 8 7 3 0 6 , 3 4 7 4 2 0 , 0 8 1 4 4 4 , 4 4 9 4 3 1 , 1 5 6 4 4 4 , 3 0 2 4 6 8 , 6 3 7 4 8 4 , 1 6 5 Co m m u n i t y d e v e l o p m e n t 5 1 3 , 1 0 1 - - - - - - - - - - - - - - -- -- To t a l B u s i n e s s - T y p e A c t i v i t i e s E x p e n s e s 4,8 9 7 , 3 3 7 4 , 4 2 9 , 5 3 0 4 , 6 5 7 , 1 3 7 4 , 6 3 4 , 8 4 0 4 , 3 9 5 , 6 7 0 4 , 5 7 8 , 8 9 7 4 , 6 4 4 , 0 9 4 4 , 4 6 7 , 9 6 3 4 , 6 9 3 , 2 6 0 4,910,403 To t a l P r i m a r y G o v e r n m e n t P r o g r a m E x p e n s e s 11 , 6 6 7 , 1 1 3 $ 1 1 , 9 9 2 , 2 3 7 $ 1 3 , 4 7 4 , 4 5 1 $ 1 3 , 2 1 6 , 2 1 1 $ 1 3 , 0 0 6 , 3 7 3 $ 1 3 , 4 8 3 , 0 4 4 $ 1 4 , 1 8 6 , 1 1 6 $ 1 3 , 7 0 0 , 7 0 7 $ 1 4 , 2 1 3 , 1 7 6 $ 14,585,996 $ Pr o g r a m R e v e n u e s Go v e r n m e n t a l a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s : Ge n e r a l g o v e r n m e n t 4 3 9 , 6 4 6 $ 2 6 0 , 6 4 7 $ 2 7 0 , 1 3 7 $ 2 7 8 , 2 1 5 $ 4 7 5 , 2 4 4 $ 3 0 2 , 1 8 2 $ 3 1 6 , 8 1 6 $ 5 6 8 , 4 5 2 $ 7 4 2 , 4 3 8 $ 6 9 5 , 8 0 1 $ Pu b l i c s a f e t y 5 3 8 , 0 5 6 1 , 0 4 0 , 4 2 7 1 , 1 2 1 , 6 4 2 1 , 0 0 6 , 9 4 7 8 6 3 , 3 9 1 7 8 3 , 7 7 4 8 9 9 , 6 3 9 1 , 2 8 3 , 7 2 8 1 , 2 7 0 , 3 0 8 1 , 1 4 2 , 5 9 3 Tr a n s p o r t a t i o n - - - - - - - - 1 2 - - - - - - - - 4 , 4 8 0 Le i s u r e s e r v i c e s 4 2 , 4 3 0 4 , 4 1 0 5 7 , 2 6 1 5 4 , 3 6 4 5 0 , 2 1 9 7 2 , 4 8 7 9 2 , 0 0 3 7 7 , 9 5 5 7 1 , 9 3 9 8 6 , 3 4 9 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 4 3 , 9 4 5 5 1 5 , 4 3 8 3 6 5 , 1 8 3 2 0 , 3 5 0 1 8 , 7 1 1 6 7 , 8 4 2 2 4 , 3 5 4 5 8 , 7 4 6 6 0 , 2 6 0 9 5 , 1 4 5 Ca p i t a l g r a n t s a n d c o n t r i b u t i o n s - - - - 5 3 5 , 0 0 0 5 4 , 7 6 4 5 7 , 7 3 6 - - 1 0 0 , 0 0 0 2 , 6 8 9 , 6 2 6 1 1 9 , 2 0 0 -- To t a l G o v e r n m e n t a l A c t i v i t i e s P r o g r a m R e v e n u e s 1,0 6 4 , 0 7 7 1 , 8 2 0 , 9 2 2 2 , 3 4 9 , 2 2 3 1 , 4 1 4 , 6 4 0 1 , 4 6 5 , 3 1 3 1 , 2 2 6 , 2 8 5 1 , 4 3 2 , 8 1 2 4 , 6 7 8 , 5 0 7 2 , 2 6 4 , 1 4 5 2,024,368 Bu s i n e s s - T y p e A c t i v i t i e s Ch a r g e s f o r s e r v i c e s : Wa t e r 3 , 9 3 1 , 5 6 2 4 , 0 3 7 , 6 7 4 4 , 0 9 0 , 2 6 8 3 , 8 5 0 , 5 0 8 3 , 4 6 3 , 5 6 4 3 , 8 6 3 , 4 3 9 4 , 0 7 6 , 1 3 2 4 , 5 8 5 , 2 8 7 4 , 4 3 6 , 9 5 8 4 , 0 1 8 , 7 5 5 St o r m w a t e r 3 0 3 , 4 5 0 2 9 8 , 1 8 8 3 0 1 , 9 9 3 3 0 3 , 2 7 3 2 9 9 , 7 2 9 3 1 4 , 5 6 9 3 1 3 , 1 2 6 3 1 4 , 2 6 4 3 2 3 , 1 9 3 3 2 3 , 5 1 3 Re f u s e a n d r e c y c l i n g 2 4 8 , 2 5 2 2 7 7 , 5 8 9 2 8 3 , 8 2 1 2 8 5 , 9 1 7 4 0 2 , 4 3 9 4 1 4 , 3 1 2 4 1 4 , 6 5 7 4 3 6 , 1 4 2 4 8 7 , 3 9 2 4 8 2 , 4 2 2 Co m m u n i t y d e v e l o p m e n t 3 4 8 , 5 1 1 - - - - - - - - - - - - - - - - - - Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s - - - - 4 2 , 4 7 1 7 , 8 2 7 - - - - 5 1 , 5 1 1 - - - - - - Ca p i t a l g r a n t s a n d c o n t r i b u t i o n s - - 1 1 9 , 9 4 4 4 8 4 , 0 0 0 4 3 0 , 0 0 0 - - - - - - - - -- -- To t a l B u s i n e s s - T y p e A c t i v i t i e s P r o g r a m R e v e n u e s 4,8 3 1 , 7 7 5 4 , 7 3 3 , 3 9 5 5 , 2 0 2 , 5 5 3 4 , 8 7 7 , 5 2 5 4 , 1 6 5 , 7 3 2 4 , 5 9 2 , 3 2 0 4 , 8 5 5 , 4 2 6 5 , 3 3 5 , 6 9 3 5 , 2 4 7 , 5 4 3 4,824,690 To t a l P r i m a r y G o v e r n m e n t P r o g r a m R e v e n u e s 5,8 9 5 , 8 5 2 $ 6 , 5 5 4 , 3 1 7 $ 7 , 5 5 1 , 7 7 6 $ 6 , 2 9 2 , 1 6 5 $ 5 , 6 3 1 , 0 4 5 $ 5 , 8 1 8 , 6 0 5 $ 6 , 2 8 8 , 2 3 8 $ 1 0 , 0 1 4 , 2 0 0 $ 7 , 5 1 1 , 6 8 8 $ 6,849,058 $ Ne t ( E x p e n s e ) R e v e n u e Go v e r n m e n t a l a c t i v i t i e s ( 5 , 7 0 5 , 6 9 9 ) $ ( 5 , 7 4 1 , 7 8 5 ) $ ( 6 , 4 6 8 , 0 9 1 ) $ ( 7 , 1 6 6 , 7 3 1 ) $ ( 7 , 1 4 5 , 3 9 0 ) $ ( 7 , 6 7 7 , 8 6 2 ) $ ( 8 , 1 0 9 , 2 1 0 ) $ ( 4 , 5 5 4 , 2 3 7 ) $ ( 7 , 2 5 5 , 7 7 1 ) $ ( 7 , 6 5 1 , 2 2 5 ) $ Bu s i n e s s - t y p e a c t i v i t i e s ( 6 5 , 5 6 2 ) 3 0 3 , 8 6 5 5 4 5 , 4 1 6 2 4 2 , 6 8 5 ( 2 2 9 , 9 3 8 ) 1 3 , 4 2 3 2 1 1 , 3 3 2 8 6 7 , 7 3 0 5 5 4 , 2 8 3 (85,713) To t a l P r i m a r y G o v e r n m e n t N e t E x p e n s e (5 , 7 7 1 , 2 6 1 ) $ ( 5 , 4 3 7 , 9 2 0 ) $ ( 5 , 9 2 2 , 6 7 5 ) $ ( 6 , 9 2 4 , 0 4 6 ) $ ( 7 , 3 7 5 , 3 2 8 ) $ ( 7 , 6 6 4 , 4 3 9 ) $ ( 7 , 8 9 7 , 8 7 8 ) $ ( 3 , 6 8 6 , 5 0 7 ) $ ( 6 , 7 0 1 , 4 8 8 ) $ (7,736,938)$ No t e : T h e V i l l a g e i m p l e m e n t e d G A S B S t a t e m e n t N o . 6 3 d u r i n g t h e f i s c a l y e a r e n d e d S e p t e m b e r 3 0 , 2 0 1 3 a n d u t i l i z e d t h e n e w t e r m i no l o g y f o r a l l y e a r s p r e s e n t e d . VI L L A G E O F T E Q U E S T A , F L O R I D A CH A N G E S I N N E T P O S I T I O N LA S T T E N F I S C A L Y E A R S (A C C R U A L B A S I S O F A C C O U N T I N G ) 86 Ge n e r a l R e v e n u e s 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Go v e r n m e n t a l a c t i v i t i e s : Ta x e s : Pr o p e r t y t a x e s 3 , 7 8 1 , 0 9 5 $ 4 , 4 9 4 , 7 1 3 $ 5 , 1 6 6 , 7 5 4 $ 6 , 1 3 9 , 0 0 7 $ 5 , 6 6 1 , 2 0 0 $ 5 , 1 7 3 , 8 0 8 $ 4 , 6 4 3 , 8 1 6 $ 4 , 3 4 1 , 6 6 8 $ 4,268,732 $ 4,339,215 $ Ot h e r t a x e s 1 , 0 8 9 , 7 8 1 1 , 0 8 4 , 8 2 7 1 , 0 8 7 , 7 5 9 1 , 1 5 7 , 1 2 8 1 , 1 2 3 , 2 7 2 1 , 2 8 5 , 0 6 3 1 , 3 1 5 , 0 0 6 1 , 2 6 6 , 6 8 1 1,235,941 1,266,929 Fr a n c h i s e f e e s b a s e d o n g r o s s r e c e i p t s 3 7 2 , 2 1 2 3 6 7 , 7 7 8 4 1 9 , 9 2 9 4 7 7 , 7 1 1 4 6 2 , 2 9 6 4 6 6 , 5 4 1 4 3 5 , 7 6 6 4 1 2 , 4 4 1 393,734 380,160 Un r e s t r i c t e d i n t e r g o v e r n m e n t a l 5 5 8 , 0 6 9 6 2 2 , 4 5 7 6 7 9 , 0 0 1 8 1 5 , 8 2 8 7 8 3 , 0 3 4 7 0 2 , 6 1 6 7 1 7 , 6 7 3 7 2 4 , 4 0 0 718,277 735,924 Un r e s t r i c t e d i n v e s t m e n t e a r n i n g s 7 9 , 4 8 3 2 1 4 , 5 8 8 3 9 2 , 9 6 1 4 0 4 , 8 1 6 1 5 2 , 6 0 2 8 , 7 2 5 7 1 , 0 6 7 3 2 , 7 7 5 49,173 22,316 Mi s c e l l a n e o u s r e v e n u e s 8 3 , 1 2 6 6 4 1 , 9 0 1 1 7 3 , 3 6 2 1 0 6 , 6 4 7 3 7 , 6 2 1 1 7 1 , 6 1 4 2 0 8 , 7 5 4 1 1 6 , 7 0 7 99,072 77,390 Ga i n ( l o s s ) o n s a l e o f c a p i t a l a s s e t s ( 1 , 0 1 2 , 5 8 4 ) - - 1 , 9 8 1 - - - - - - - - - - -- -- Tr a n s f e r s ( 8 , 4 6 0 ) 7 1 0 , 1 5 1 6 0 , 3 0 0 6 0 , 3 0 0 1 2 0 , 6 0 0 - - - - -- -- -- To t a l G o v e r n m e n t a l R e v e n u e s a n d t r a n s f e r s 4, 9 4 2 , 7 2 2 8 , 1 3 6 , 4 1 5 7 , 9 8 2 , 0 4 7 9 , 1 6 1 , 4 3 7 8 , 3 4 0 , 6 2 5 7 , 8 0 8 , 3 6 7 7 , 3 9 2 , 0 8 2 6,894,672 6,764,929 6,821,934 Bu s i n e s s - T y p e A c t i v i t i e s Un r e s t r i c t e d I n v e s t m e n t e a r n i n g s 7 5 , 8 4 6 1 6 4 , 1 6 3 2 8 0 , 6 6 5 3 2 1 , 7 1 8 8 6 , 8 1 1 ( 9 , 2 0 8 ) 4 9 , 9 7 3 2 8 , 0 7 4 30,448 20,727 Mi s c e l l a n e o u s r e v e n u e s 8 2 , 5 7 6 1 5 1 , 4 8 7 4 7 9 , 1 4 5 3 9 7 , 7 0 8 3 9 , 9 5 5 4 2 , 0 8 0 4 0 , 2 2 9 7 9 , 9 6 8 30,801 37,017 Ga i n ( l o s s ) o n s a l e o f c a p i t a l a s s e t s 3 , 8 5 0 ( 7 1 0 , 1 5 1 ) 4 , 8 2 0 - - - - - - - - - - -- -- Tr a n s f e r s 8 , 4 6 0 - - ( 6 0 , 3 0 0 ) ( 6 0 , 3 0 0 ) ( 1 2 0 , 6 0 0 ) - - - - -- -- -- To t a l B u s i n e s s - T y p e A c t i v i t i e s 17 0 , 7 3 2 ( 3 9 4 , 5 0 1 ) 7 0 4 , 3 3 0 6 5 9 , 1 2 6 6 , 1 6 6 3 2 , 8 7 2 9 0 , 2 0 2 108,042 61,249 57,744 To t a l P r i m a r y G o v e r n m e n t 5, 1 1 3 , 4 5 4 7 , 7 4 1 , 9 1 4 8 , 6 8 6 , 3 7 7 9 , 8 2 0 , 5 6 3 8 , 3 4 6 , 7 9 1 7 , 8 4 1 , 2 3 9 7 , 4 8 2 , 2 8 4 7,002,714 6,826,178 6,879,678 Ch a n g e i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s ( 7 6 2 , 9 7 7 ) 2 , 3 9 4 , 6 3 0 1 , 5 1 3 , 9 5 6 1 , 9 9 4 , 7 0 6 1 , 1 9 5 , 2 3 5 1 3 0 , 5 0 5 ( 7 1 7 , 1 2 8 ) 2 , 3 4 0 , 4 3 5 (490,842) (829,291) Bu s i n e s s - t y p e a c t i v i t i e s 1 0 5 , 1 7 0 ( 9 0 , 6 3 6 ) 1 , 2 4 9 , 7 4 6 9 0 1 , 8 1 1 ( 2 2 3 , 7 7 2 ) 4 6 , 2 9 5 3 0 1 , 5 3 4 975,772 615,532 (27,969) To t a l P r i m a r y G o v e r n m e n t (6 5 7 , 8 0 7 ) $ 2 , 3 0 3 , 9 9 4 $ 2 , 7 6 3 , 7 0 2 $ 2 , 8 9 6 , 5 1 7 $ 97 1 , 4 6 3 $ 17 6 , 8 0 0 $ ( 4 1 5 , 5 9 4 ) $ 3,316,207 $ 124,690 $ (857,260)$ No t e : T h e V i l l a g e i m p l e m e n t e d G A S B S t a t e m e n t N o . 6 3 d u r i n g t h e f i s c a l y e a r e n d e d S e p t e m b e r 3 0 , 2 0 1 3 a n d u t i l i z e d t h e n e w t e r m i no l o g y f o r a l l y e a r s p r e s e n t e d . VI L L A G E O F T E Q U E S T A , F L O R I D A CH A N G E S I N N E T P O S I T I O N ( C O N T I N U E D ) LA S T T E N F I S C A L Y E A R S (A C C R U A L B A S I S O F A C C O U N T I N G ) 87 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Ge n e r a l F u n d Re s e r v e d 5 0 , 5 0 9 $ 5 6 , 7 5 9 $ 1 7 6 , 4 1 0 $ 4 7 , 4 9 3 $ 8 2 , 1 9 7 $ 3 8 3 , 7 6 6 $ 1 2 9 , 3 9 4 $ - - $ - - $ --$ Un r e s e r v e d 3 , 7 1 8 , 3 8 0 3 , 4 2 4 , 4 0 8 3 , 2 2 1 , 3 9 0 4 , 4 5 6 , 2 4 7 5 , 1 8 0 , 6 1 1 4 , 2 9 6 , 4 1 8 3 , 8 4 6 , 4 1 8 - - - - -- N o n s p e n d a b l e - - - - - - - - - - - - - - 2 2 8 , 0 4 9 1 7 8 , 4 7 8 144,581 R e s t r i c t e d - - - - - - - - - - - - - - 4 1 9 , 5 9 1 5 4 9 , 0 3 4 575,287 A s s i g n e d - - - - - - - - - - - - - - 1 , 3 7 2 , 1 2 5 1 , 4 8 1 , 7 9 2 1,000,000 U n a s s i g n e d _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ 2, 0 0 9 , 1 8 0 1,487,198 1,921,295 To t a l G e n e r a l F u n d 3, 7 6 8 , 8 8 9 $ 3 , 4 8 1 , 1 6 7 $ 3 , 3 9 7 , 8 0 0 $ 4 , 5 0 3 , 7 4 0 $ 5 , 2 6 2 , 8 0 8 $ 4 , 6 8 0 , 1 8 4 $ 3 , 9 7 5 , 8 1 2 $ 4 , 0 2 8 , 9 4 5 $ 3,696,502 $ 3,641,163 $ Al l O t h e r G o v e r n m e n t a l F u n d s Re s e r v e d 3 4 1 , 7 2 2 8 2 3 , 6 7 5 1 4 3 , 3 7 0 1 9 6 , 4 2 6 1 2 , 7 5 2 2 9 , 5 0 8 1 1 7 , 8 3 8 - - - - -- Un r e s e r v e d , r e p o r t e d i n : Sp e c i a l r e v e n u e f u n d 1 5 , 6 9 2 1 7 , 9 0 1 2 5 5 , 1 7 9 3 6 2 , 5 8 2 3 9 1 , 5 2 7 2 2 , 0 3 7 2 1 , 0 7 2 - - - - -- Ca p i t a l P r o j e c t s f u n d s 8 8 9 , 3 9 5 2 , 5 1 9 , 0 3 3 1 , 5 9 9 , 4 1 6 4 5 7 , 8 8 5 8 0 3 , 5 1 1 1 , 5 0 2 , 9 3 9 1 , 3 6 6 , 1 1 9 - - - - -- R e s t r i c t e d - - - - - - - - - - - - - - 4 5 , 7 7 1 3 0 , 7 7 5 4,033 A s s i g n e d _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ 64 6 , 9 7 7 608,377 159,726 To t a l O t h e r G o v e r n m e n t a l F u n d s 1, 2 4 6 , 8 0 9 $ 3 , 3 6 0 , 6 0 9 $ 1 , 9 9 7 , 9 6 5 $ 1 , 0 1 6 , 8 9 3 $ 1 , 2 0 7 , 7 9 0 $ 1 , 5 5 4 , 4 8 4 $ 1 , 5 0 5 , 0 2 9 $ 6 9 2 , 7 4 8 $ 639,152 $ 163,759 $ No t e : T h e V i l l a g e i m p l e m e n t e d G A S B S t a t e m e n t N o . 5 4 f o r t h e f i s c a l y e a r e n d e d S e p t e m b e r 3 0 , 2 0 1 1 VI L L A G E O F T E Q U E S T A , F L O R I D A FU N D B A L A N C E S O F G O V E R N M E N T A L F U N D S LA S T T E N F I S C A L Y E A R S (M O D I F I E D A C C R U A L B A S I S O F A C C O U N T I N G ) 88 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Re v e n u e s Ta x e s 5 , 2 4 3 , 0 8 8 $ 5 , 5 7 9 , 5 4 0 $ 6 , 2 5 4 , 5 1 3 $ 7 , 2 9 6 , 1 3 5 $ 6 , 8 7 1 , 6 3 9 $ 6 , 4 5 8 , 8 7 1 $ 5 , 9 5 8 , 8 2 2 $ $ 5 , 6 0 8 , 3 4 9 $ 5 , 5 0 4 , 6 7 3 $ 5 , 6 0 6 , 1 4 4 In t e r g o v e r n m e n t a l 5 9 6 , 9 4 7 6 2 2 , 4 5 7 6 7 9 , 0 0 1 8 1 5 , 8 2 8 7 8 3 , 0 3 4 7 2 4 , 3 7 5 8 3 9 , 1 1 0 7 7 6 , 5 0 0 7 5 5 , 7 9 2 7 5 2 , 7 2 8 Fr a n c h i s e f e e s - 3 6 7 , 7 7 8 4 1 9 , 9 2 9 4 7 7 , 7 1 1 4 6 2 , 2 9 6 4 6 6 , 5 4 1 4 3 5 , 7 6 6 4 1 2 , 4 4 1 3 9 3 , 7 3 4 3 8 0 , 1 6 0 Ch a r g e s f o r s e r v i c e s 4 7 7 , 5 1 3 4 9 0 , 9 9 5 5 0 7 , 7 0 2 5 2 6 , 9 2 2 5 7 4 , 9 3 7 5 9 7 , 2 6 9 6 8 7 , 3 3 2 8 8 8 , 6 3 9 9 4 8 , 3 9 5 9 0 1 , 6 5 9 In t r a g o v e r n m e n t a l 3 4 1 , 7 0 0 2 5 4 , 8 9 8 2 6 2 , 7 0 0 2 7 3 , 1 5 0 2 8 0 , 1 0 0 2 9 2 , 9 9 0 3 0 7 , 7 4 0 3 2 3 , 1 1 0 5 0 3 , 1 6 3 5 0 3 , 7 0 9 Gr a n t s , c o n t r i b u t i o n s a n d d o n a t i o n s 4 3 , 9 4 5 5 1 5 , 4 3 8 9 0 0 , 1 8 3 9 0 , 3 9 8 7 6 , 4 4 8 3 7 , 5 8 3 - - - - 1 2 6 , 9 4 4 6 1 , 1 8 5 Li c e n s e s a n d p e r m i t s 9 3 , 6 0 1 5 4 9 , 8 8 4 6 3 1 , 5 2 1 4 0 1 , 7 0 4 2 9 9 , 0 5 9 2 1 1 , 3 7 1 2 7 9 , 8 3 5 3 3 2 , 9 1 3 4 1 7 , 7 0 2 3 3 0 , 5 6 9 In t e r e s t 7 9 , 4 8 3 2 1 4 , 5 8 8 3 9 2 , 9 6 1 4 0 4 , 8 1 6 1 5 2 , 6 0 2 8 , 7 2 5 7 1 , 0 6 7 3 2 , 7 7 5 4 9 , 1 7 3 2 2 , 3 1 6 Fi n e s a n d f o r f e i t u r e s 5 7 , 4 1 3 3 5 2 , 2 5 4 3 4 , 8 2 5 1 1 1 , 0 8 0 4 0 , 7 7 9 3 4 , 8 7 7 2 1 , 7 2 1 2 0 4 , 2 7 3 5 7 , 5 3 9 4 2 , 1 8 7 Mi s c e l l a n e o u s 8 3 , 1 2 6 2 8 9 , 6 4 7 1 7 5 , 3 4 3 5 2 , 8 9 9 3 8 , 2 4 2 8 0 , 6 0 3 6 2 , 0 0 9 1 4 1 , 9 0 2 8 6 , 0 6 4 9 8 , 3 4 1 Re n t s a n d r o y a l t i e s - - - 1 0 8 , 6 2 8 1 0 3 , 6 2 7 1 2 0 , 5 9 6 1 6 1 , 4 9 2 1 6 2 , 6 5 1 1 6 7 , 6 3 6 1 4 7 , 3 0 3 Im p a c t f e e s 1 1 , 0 2 8 9 , 7 0 7 1 2 , 2 9 2 3 , 8 5 8 2 , 5 7 5 8 5 1 - - - - 18,257 -- To t a l R e v e n u e s 7, 0 2 7 , 8 4 4 9 , 2 4 7 , 1 8 6 1 0 , 2 7 0 , 9 7 0 1 0 , 5 6 3 , 1 2 9 9 , 6 8 5 , 3 3 8 9 , 0 3 4 , 6 5 2 8 , 8 2 4 , 8 9 4 8 , 8 8 3 , 5 5 3 9,029,072 8,846,301 Ex p e n d i t u r e s Cu r r e n t : Ge n e r a l g o v e r n m e n t 1 , 2 2 5 , 5 5 0 1 , 3 1 4 , 2 7 0 1 , 3 9 1 , 6 1 2 1 , 3 7 1 , 1 4 8 1 , 2 2 0 , 2 3 8 1 , 3 7 3 , 1 5 8 1 , 3 4 1 , 4 7 5 1 , 4 1 0 , 4 1 7 1 , 4 6 9 , 6 1 5 1 , 5 2 8 , 3 1 4 Pu b l i c s a f e t y 3 , 9 1 8 , 7 9 8 4 , 3 5 1 , 9 3 6 5 , 2 3 3 , 8 0 7 5 , 2 9 1 , 3 9 8 5 , 4 3 9 , 2 0 2 5 , 4 1 1 , 7 4 5 5 , 8 3 0 , 7 3 4 5 , 5 6 5 , 0 9 1 5 , 9 0 2 , 5 6 8 5 , 9 0 2 , 4 7 9 Tr a n s p o r t a t i o n 7 7 6 , 2 7 3 6 2 5 , 0 1 4 8 0 7 , 6 5 1 7 3 6 , 4 3 6 6 9 2 , 5 5 2 7 1 0 , 3 8 4 7 3 8 , 3 2 3 7 1 4 , 9 3 4 7 2 5 , 8 3 3 8 7 9 , 1 6 9 Le i s u r e s e r v i c e s 3 8 4 , 9 8 0 5 2 3 , 4 3 9 6 9 2 , 4 0 8 4 9 5 , 7 6 7 4 6 7 , 7 4 0 5 6 2 , 7 1 4 6 1 9 , 3 4 0 5 4 8 , 7 2 9 5 5 2 , 0 0 2 5 6 1 , 9 3 8 Ca p i t a l o u t l a y 3 6 8 , 3 0 3 8 7 0 , 4 5 3 3 , 1 6 2 , 0 3 4 1 , 8 9 2 , 0 7 5 2 5 7 , 3 7 3 7 5 2 , 9 8 0 5 9 4 , 2 2 4 9 7 3 , 8 1 0 3 3 5 , 6 8 9 1 2 0 , 3 9 9 De b t s e r v i c e : Pr i n c i p a l 3 1 9 , 2 8 0 3 3 6 , 1 0 1 3 8 2 , 6 8 7 4 8 2 , 6 6 5 5 7 2 , 7 4 2 2 7 8 , 8 3 1 2 8 4 , 8 3 3 2 7 1 , 0 3 5 2 8 2 , 5 3 7 2 4 7 , 8 0 9 In t e r e s t 2 6 2 , 4 7 9 2 5 5 , 6 7 2 2 4 3 , 8 7 1 2 2 2 , 9 3 8 2 0 0 , 2 3 6 1 7 1 , 2 9 7 1 5 9 , 5 0 6 1 4 8 , 1 8 6 1 3 7 , 0 2 7 1 2 5 , 0 5 4 Fi s c a l c h a r g e s -- - - - - 6 , 1 3 6 5 , 8 9 0 9 , 4 7 3 1 0 , 2 8 6 1 0 , 4 9 9 9,841 11,870 To t a l E x p e n d i t u r e s 7, 2 5 5 , 6 6 3 8 , 2 7 6 , 8 8 5 1 1 , 9 1 4 , 0 7 0 1 0 , 4 9 8 , 5 6 3 8 , 8 5 5 , 9 7 3 9 , 2 7 0 , 5 8 2 9 , 5 7 8 , 7 2 1 9 , 6 4 2 , 7 0 1 9,415,112 9,377,032 Ex c e s s ( D e f i c i e n c y ) o f R e v e n u e s Ov e r E x p e n d i t u r e s (2 2 7 , 8 1 9 ) 9 7 0 , 3 0 1 ( 1 , 6 4 3 , 1 0 0 ) 6 4 , 5 6 8 8 2 9 , 3 6 4 ( 2 3 5 , 9 3 0 ) ( 7 5 3 , 8 2 7 ) ( 7 5 9 , 1 4 8 ) (386,040) (530,731) Ot h e r F i n a n c i n g S o u r c e s ( U s e s ) Tr a n s f e r s i n 3 2 6 , 0 1 0 3 , 7 7 1 , 6 1 7 2 , 0 2 3 , 3 6 8 6 8 5 , 6 4 4 9 2 4 , 3 0 0 1 , 6 4 2 , 8 1 3 2 7 3 , 5 4 9 2 5 0 , 0 0 0 2 5 1 , 3 0 0 4 2 0 , 4 4 0 Tr a n s f e r s - o u t ( 3 3 4 , 4 7 0 ) ( 3 , 0 6 8 , 8 4 0 ) ( 1 , 9 6 3 , 0 6 8 ) ( 6 2 5 , 3 4 4 ) ( 8 0 3 , 7 0 0 ) ( 1 , 6 4 2 , 8 1 3 ) ( 2 7 3 , 5 4 9 ) ( 2 5 0 , 0 0 0 ) ( 2 5 1 , 3 0 0 ) ( 4 2 0 , 4 4 0 ) Ot h e r p r o c e e d s 5 7 4 , 6 2 4 1 5 2 , 9 9 9 1 3 6 , 7 8 9 - - - - - - - - - - - - -- To t a l O t h e r F i n a n c i n g S o u r c e s ( U s e s ) 56 6 , 1 6 4 8 5 5 , 7 7 6 1 9 7 , 0 8 9 6 0 , 3 0 0 1 2 0 , 6 0 0 - - - - - - -- -- Ne t C h a n g e i n F u n d B a l a n c e s 33 8 , 3 4 5 $ 1 , 8 2 6 , 0 7 7 $ ( 1 , 4 4 6 , 0 1 1 ) $ 1 2 4 , 8 6 8 $ 9 4 9 , 9 6 4 $ ( 2 3 5 , 9 3 0 ) $ ( 7 5 3 , 8 2 7 ) $ ( 7 5 9 , 1 4 8 ) $ (386,040) $ (530,731)$ De b t S e r v i c e a s a P e r c e n t a g e o f No n c a p i t a l E x p e n d i t u r e s 8. 4 5 % 7 . 9 9 % 7 . 1 6 % 8 . 2 0 % 8 . 9 9 % 5 . 2 8 % 4 . 9 5 % 4 . 8 4 % 4 . 6 2 % 4 . 0 3 % VI L L A G E O F T E Q U E S T A , F L O R I D A CH A N G E S I N F U N D B A L A N C E S O F G O V E R N M E N T A L F U N D S LA S T T E N F I S C A L Y E A R S (M O D I F I E D A C C R U A L B A S I S O F A C C O U N T I N G ) 89 Es t i m a t e d E s t i m a t e d E s t i m a t e d E s t i m a t e d A s s e s s e d Ac t u a l " J u s t " A c t u a l " J u s t " A c t u a l " J u s t " A c t u a l " J u s t " V a l u e a s a Ta x a b l e V a l u e o f T a x a b l e V a l u e o f T a x a b l e V a l u e o f T a x a b l e D i r e c t V a l u e o f P e r c e n t a g e o f Fi s c a l Y e a r E n d e d A s s e s s e d T a x a b l e A s s e s s e d T a x a b l e A s s e s s e d T a x a b l e A s s e s s e d T a x T a x a b l e A c t u a l Se p t e m b e r 3 0 V a l u e P r o p e r t y V a l u e P r o p e r t y V a l u e P r o p e r t y V a l u e R a t e P r o p e r t y V a l u e 20 0 4 5 8 3 , 4 7 0 , 3 0 8 $ 7 8 9 , 4 2 8 , 3 6 9 $ 1 9 , 4 8 8 , 5 2 8 $ 2 2 , 4 0 9 , 0 8 7 $ 3 2 6 , 4 7 4 $ 3 2 6 , 4 7 4 $ 6 0 3 , 2 8 5 , 3 1 0 $ 6 $ 8 1 2 , 1 6 3 , 9 3 0 $ 74% 20 0 5 6 9 5 , 9 0 0 , 5 9 6 9 5 0 , 9 6 9 , 7 9 8 1 9 , 7 5 2 , 6 3 1 2 2 , 6 6 9 , 0 6 1 3 4 0 , 4 8 5 3 4 0 , 4 8 5 7 1 5 , 9 9 3 , 7 1 2 6 . 4 9 8 0 9 7 3 , 9 7 9 , 3 4 4 74% 20 0 6 8 0 4 , 6 9 2 , 5 8 6 1 , 1 5 9 , 6 8 6 , 5 7 9 2 0 , 3 7 2 , 7 6 2 2 3 , 2 8 6 , 1 0 6 3 4 0 , 8 3 9 3 4 0 , 8 3 9 8 2 5 , 4 0 6 , 1 8 7 6 . 4 9 8 0 1 , 1 8 3 , 3 1 3 , 5 2 4 70% 20 0 7 9 5 9 , 6 5 0 , 1 2 5 1 , 3 6 9 , 0 2 8 , 2 7 5 2 1 , 9 2 5 , 0 9 0 2 1 , 9 2 5 , 0 9 0 3 8 5 , 2 8 4 3 8 5 , 2 8 4 9 8 1 , 9 6 0 , 4 9 9 6 . 4 9 8 0 1 , 3 9 1 , 3 3 8 , 6 4 9 71% 20 0 8 9 9 2 , 3 0 9 , 6 6 2 1 , 4 1 0 , 4 6 6 , 3 3 0 2 4 , 5 8 9 , 7 5 2 2 7 , 7 3 3 , 6 9 8 4 8 9 , 2 1 4 4 8 9 , 2 1 4 1 , 0 1 7 , 3 8 8 , 6 2 8 5 . 7 6 7 1 1 , 4 3 8 , 6 8 9 , 2 4 2 71% 20 0 9 9 0 5 , 2 4 3 , 7 6 5 1 , 2 6 3 , 3 8 0 , 9 2 4 2 0 , 2 3 8 , 4 1 2 2 6 , 8 0 0 , 8 7 5 7 2 4 , 8 5 9 7 3 0 , 8 8 3 9 2 6 , 2 0 7 , 0 3 6 5 . 7 6 7 1 1 , 2 9 0 , 9 1 2 , 6 8 2 72% 20 1 0 8 1 3 , 2 5 3 , 1 5 1 1 , 0 8 7 , 7 8 2 , 5 9 2 1 9 , 8 6 7 , 7 7 0 2 5 , 8 7 2 , 7 0 7 7 1 3 , 5 4 1 7 1 8 , 7 9 1 8 3 3 , 9 0 6 , 4 2 6 5 . 7 6 7 1 1 , 1 1 4 , 3 7 4 , 2 7 0 75% 20 1 1 7 5 9 , 6 6 3 , 1 5 2 9 9 0 , 7 4 1 , 6 9 0 2 0 , 0 8 7 , 4 2 5 2 6 , 2 0 5 , 8 4 2 4 7 1 , 6 8 0 4 7 6 , 5 4 6 7 8 0 , 2 2 2 , 2 5 7 5 . 7 6 7 1 1 , 0 1 7 , 4 2 4 , 0 7 8 77% 20 1 2 7 4 6 , 5 3 2 , 5 2 5 9 7 2 , 7 3 5 , 3 4 0 1 7 , 9 9 7 , 6 5 3 2 3 , 6 4 6 , 7 5 4 4 8 7 , 4 0 7 4 9 1 , 8 7 3 7 6 5 , 0 1 7 , 5 8 5 5 . 7 6 7 1 9 9 6 , 8 7 3 , 9 6 7 77% 20 1 3 7 6 0 , 8 8 6 , 2 7 9 9 8 5 , 0 9 8 , 7 1 9 1 7 , 4 6 4 , 9 5 5 2 3 , 0 1 0 , 3 8 9 1 , 5 5 9 , 8 0 8 1 , 5 6 4 , 8 1 1 7 7 9 , 9 1 1 , 0 4 2 5 . 7 6 7 1 1 , 0 0 9 , 6 7 3 , 9 1 9 77% So u r c e : P a l m B e a c h C o u n t y P r o p e r t y A p p r a i s e r ' s o f f i c e : . F o r m D R - 4 0 3 V R e v i s e d R e c a p i t u l a t i o n o f t h e A d V a l o r e m R o l l s o f T e q u e s t a , P a l m B e a c h C o u n t y F l o r i d a VI L L A G E O F T E Q U E S T A , F L O R I D A AS S E S S E D A N D E S T I M A T E D A C T U A L V A L U E O F T A X A B L E P R O P E R T Y LA S T T E N F I S C A L Y E A R S T o t a l Re a l P r o p e r t y P e r s o n a l P r o p e r t y A s s e s s e d P r o p e r t y Ce n t r a l l y 90 Di r e c t R a t e s S. F l o r i d a J u p i t e r F l . I s l a n d C h i l d r e n ' s C o u n t y Fi s c a l Y e a r E n d i n g V i l l a g e C o u n t y E v e r g l a d e s S c h o o l C o u n t y W a t e r M g m t . I n l e t N a v . D i s t r i c t S e r v i c e s H e a l t h C a r e Se p t e m b e r 3 0 R a t e C o u n t y D e b t C o n s t r u c t i o n D i s t r i c t L i b r a r y D i s t r i c t D i s t r i c t ( F I N D ) C o u n c i l D i s t r i c t 20 0 4 6 . 4 9 8 0 4 . 5 0 0 0 0 . 2 9 1 0 0 . 1 0 0 0 8 . 5 7 1 0 0 . 5 8 3 3 0 . 5 9 7 0 0 . 0 9 1 6 0 . 0 3 8 5 0 . 6 9 0 2 1 . 1 3 0 0 20 0 5 6 . 4 9 8 0 4 . 5 0 0 0 0 . 2 6 7 7 0 . 1 0 0 0 8 . 4 3 2 0 0 . 5 8 0 7 0 . 5 9 7 0 0 . 0 9 1 6 0 . 0 3 8 5 0 . 6 9 0 2 1 . 1 0 0 0 20 0 6 6 . 4 9 8 0 4 . 4 5 0 0 0 . 2 6 9 2 0 . 1 0 0 0 8 . 1 0 6 0 0 . 6 2 5 0 0 . 5 9 7 0 0 . 0 9 1 6 0 . 1 0 0 0 0 . 6 8 8 7 1 . 0 8 0 0 20 0 7 6 . 4 9 8 0 4 . 2 8 0 0 0 . 1 9 7 5 0 . 1 0 0 0 7 . 8 7 2 0 0 . 5 9 8 9 0 . 5 9 7 0 0 . 0 9 1 6 0 . 0 3 8 5 0 . 6 1 9 9 0 . 9 7 0 0 20 0 8 5 . 7 6 7 1 3 . 7 8 1 1 0 . 2 0 0 2 0 . 0 8 9 4 7 . 3 5 6 0 0 . 5 4 4 1 0 . 5 3 4 6 0 . 0 9 0 9 0 . 0 3 4 5 0 . 5 8 2 3 0 . 8 9 0 0 20 0 9 5 . 7 6 7 1 3 . 7 8 1 1 0 . 1 8 4 5 0 . 0 8 9 4 7 . 2 5 1 0 0 . 5 4 2 7 0 . 5 3 4 6 0 . 1 0 0 0 0 . 0 3 4 5 0 . 6 0 0 9 0 . 9 9 7 5 20 1 0 5 . 7 6 7 1 4 . 3 4 4 0 0 . 2 1 7 4 0 . 0 8 9 4 7 . 9 8 3 0 0 . 5 5 1 8 0 . 5 3 4 6 0 . 1 2 5 3 0 . 0 3 4 5 0 . 6 8 9 8 1 . 1 4 5 1 20 1 1 5 . 7 6 7 1 4 . 7 5 0 0 0 . 2 4 6 0 0 . 0 8 9 4 8 . 1 5 4 0 0 . 6 0 6 9 0 . 5 3 4 6 0 . 1 3 6 4 0 . 0 3 4 5 0 . 7 5 1 3 1 . 1 4 5 1 20 1 2 5 . 7 6 7 1 4 . 7 8 1 5 0 . 2 1 1 0 0 . 0 6 2 4 8 . 1 8 0 0 0 . 6 0 8 1 0 . 1 7 8 5 0 . 1 3 6 4 0 . 0 3 4 5 0 . 7 4 7 5 1 . 1 2 5 0 20 1 3 5 . 7 6 7 1 4 . 7 8 1 5 0 . 2 0 8 7 0 . 0 6 1 3 7 . 7 7 8 0 0 . 6 0 6 6 0 . 1 7 5 7 0 . 1 3 6 4 0 . 0 3 4 5 0 . 7 3 0 0 1 . 1 2 2 0 (1 ) O v e r l a p p i n g r a t e s a r e t h o s e o f l o c a l a n d c o u n t y g o v e r n m e n t s t h a t a p p l y t o p r o p e r t y o w n e r s w i t h i n t h e V i l l a g e o f T e q u e s t a . So u r c e s : P a l m B e a c h C o u n t y P r o p e r t y A p p r a i s e r ' s o f f i c e Ov e r l a p p i n g R a t e s ( 1 ) VI L L A G E O F T E Q U E S T A , F L O R I D A PR O P E R T Y T A X R A T E S - A L L D I R E C T A N D O V E R L A P P I N G G O V E R N M E N T S LA S T T E N F I S C A L Y E A R S (P e r $ 1 , 0 0 0 o f A s s e s s e d V a l u e ) 91 Pe r c e n t a g e o f P e r c e n t a g e o f Ta x a b l e T o t a l V i l l a g e T a x a b l e T o t a l V i l l a g e As s e s s e d T a x a b l e A s s e s s e d T a x a b l e Ta x p a y e r V a l u e R a n k V a l u e V a l u e R a n k V a l u e Ta m w e s t R e a l t y , I n c ( C o u n t y L i n e P l a z a ) 1 6 , 1 3 2 , 0 4 0 $ 1 2 . 0 7 % 1 0 , 6 0 4 , 3 1 8 $ 1 1 . 7 6 % GH M T e q u e s t a H o l d i n g s , L L C 1 1 , 1 2 6 , 1 9 7 2 1 . 4 3 % DD R S . E . T e q u e s t a , L L C ( T e q . S h o p p e s ) 7 , 9 9 7 , 0 9 6 3 1 . 0 3 % 8 , 3 6 1 , 6 9 1 2 1 . 3 9 % Fl o r i d a P o w e r & L i g h t C o . 7 , 5 5 0 , 6 5 6 4 0 . 9 7 % Te q u e s t a I n v e s t o r s , L P 6 , 9 6 4 , 2 9 8 5 0 . 8 9 % Te r r a c e C o m m u n i t i e s T e q u e s t a , L L C 6 , 8 9 0 , 9 2 7 6 0 . 8 8 % 7 , 7 3 0 , 9 8 4 3 1 . 2 8 % AL S N o r t h A m e r i c a , I n c . 4 , 0 0 0 , 0 0 0 7 0 . 5 1 % SL O M L L L C 3 , 8 7 5 , 8 5 5 8 0 . 5 0 % JM Z T e q u e s t a P r o p e r t i e s , I N C 3 , 5 0 4 , 3 0 4 9 0 . 4 5 % 3 , 0 3 7 , 6 2 8 8 0 . 5 0 % Te q u e s t a C o u n t r y C l u b 2 , 8 5 8 , 2 2 3 1 0 0 . 3 7 % 3 , 6 9 8 , 3 9 0 6 0 . 6 1 % Co h e n S q u a r e , L L C 5, 4 5 0 , 0 0 0 4 0 . 9 0 % AH C P u r c h a s e r I n c 4, 6 4 8 , 0 4 1 5 0 . 7 7 % He r s e y H a r r y 3, 6 7 5 , 1 6 0 7 0 . 6 1 % HC P P r o p e r t y o f F l o r i d a , I N C 3 , 0 0 9 , 5 8 0 9 0 . 5 0 % Ma n t w i l l , D a v i d A . 2, 8 7 0 , 4 6 4 1 0 0 . 4 8 % T o t a l 7 0 , 8 9 9 , 5 9 6 $ 9 . 0 9 % 5 3 , 0 8 6 , 2 5 6 $ 8.80% So u r c e : P a l m B e a c h C o u n t y T a x C o l l e c t o r ' s S y s t e m , t a x y e a r 2 0 1 3 V IL L A G E O F T EQ U E S T A , F LO R I D A PR I N C I P A L P R O P E R T Y T A X P A Y E R S CU R R E N T Y E A R A N D N I N E Y E A R S A G O 20 1 3 2 0 0 4 92 Fi s c a l Y e a r T a x e s L e v i e d C o l l e c t i o n s E n d e d f o r t h e P e r c e n t a g e i n S u b s e q u e n t P e r c e n t a g e Se p t e m b e r 3 0 , F i s c a l Y e a r ( 1 ) A m o u n t o f L e v y Y e a r s A m o u n t o f L e v y 20 0 4 3 , 9 1 2 , 0 0 3 $ 3 , 7 7 6 , 7 8 2 $ 9 6 . 5 % 4 , 1 2 5 $ 3 , 7 8 0 , 9 0 7 $ 9 6 . 6 % 20 0 5 4 , 6 5 0 , 5 7 8 4 , 4 8 6 , 2 2 4 9 6 . 5 % 5 , 8 5 7 4 , 4 9 2 , 0 8 1 9 6 . 6 % 20 0 6 5 , 3 6 3 , 4 8 9 5 , 1 6 4 , 2 9 2 9 6 . 3 % 5 , 5 4 3 5 , 1 6 9 , 8 3 5 9 6 . 4 % 20 0 7 6 , 3 5 5 , 1 4 9 6 , 1 3 4 , 0 3 8 9 6 . 5 % 9 , 0 0 4 6 , 1 4 3 , 0 4 2 9 6 . 7 % 20 0 8 5 , 8 6 3 , 7 9 6 5 , 6 6 3 , 4 3 9 9 6 . 6 % 7 , 0 3 2 5 , 6 7 0 , 4 7 1 9 6 . 7 % 20 0 9 5 , 3 4 1 , 5 2 9 5 , 1 6 2 , 0 4 4 9 6 . 6 % 1 3 , 2 1 9 5 , 1 7 5 , 2 6 3 9 6 . 9 % 20 1 0 4 , 8 0 9 , 2 2 2 4 , 6 2 7 , 7 3 2 9 6 . 2 % 1 1 , 2 7 0 4 , 6 3 9 , 0 0 2 9 6 . 5 % 20 1 1 4 , 5 1 3 , 4 4 7 4 , 3 3 8 , 3 9 5 9 6 . 1 % 4 , 5 6 2 * 4 , 3 4 2 , 9 5 7 9 6 . 2 % 20 1 2 4 , 4 2 5 , 7 9 3 4 , 2 5 4 , 0 3 7 9 6 . 1 % ( 5 2 6 ) 4 , 2 5 3 , 5 1 2 9 6 . 1 % 20 1 3 4 , 5 0 2 , 7 2 7 4 , 3 3 7 , 5 7 0 9 6 . 3 % - - 4 , 3 3 7 , 5 7 0 9 6 . 3 % (1 ) T h e t a x l e v i e d i n a f i s c a l y e a r i s b a s e d o n t h e t a x a b l e v a l u e o f t h e p r i o r y e a r (2 ) I n c l u d e s d i s c o u n t s t a k e n b y p r o p e r t y t a x p a y e r s . *B r e a k d o w n b y t h e y e a r s f o r t h i s a m o u n t i s n o t a v a i l a b l e a t t h i s t i m e . S o m e d e l i n q u e n t c o l l e c t i o n s i n F Y 1 2 a r e a p p l i e d t o F Y 11. So u r c e : P a l m B e a c h C o u n t y T a x C o l l e c t o r ' s o f f i c e . Fi s c a l Y e a r o f t h e L e v y Co l l e c t e d w i t h i n t h e To t a l C o l l e c t i o n s t o D a t e ( 2 ) VI L L A G E O F T E Q U E S T A , F L O R I D A PR O P E R T Y T A X L E V I E S A N D C O L L E C T I O N S LA S T T E N F I S C A L Y E A R S 93 To t a l P e r c e n t a g e Fi s c a l Y e a r E n d i n g R e v e n u e N o t e s C a p i t a l R e v e n u e N o t e s P r i m a r y o f P e r s o n a l P e r Se p t e m b e r 3 0 B o n d s P a y a b l e L e a s e s B o n d s P a y a b l e G o v e r n m e n t I n c o m e C a p i t a 20 0 4 5 9 5 , 0 0 0 $ 4 , 6 6 9 , 6 4 8 $ 3 6 3 , 0 6 5 $ 7 , 1 8 5 , 0 0 0 $ 6 4 5 , 1 7 0 $ 1 3 , 4 5 7 , 8 8 3 $ 6 . 8 1 % 2,383 20 0 5 4 9 0 , 0 0 0 4 , 4 9 3 , 5 7 9 4 6 1 , 0 3 2 7 , 0 2 0 , 0 0 0 5 2 4 , 8 5 2 1 2 , 9 8 9 , 4 6 3 6 . 5 3 % 2,284 20 0 6 3 8 0 , 0 0 0 4 , 3 0 9 , 8 2 7 5 0 8 , 8 8 6 6 , 8 5 0 , 0 0 0 5 0 4 , 8 5 2 1 2 , 5 5 3 , 5 6 5 6 . 2 9 % 2,202 20 0 7 2 5 9 , 8 4 6 4 , 1 1 8 , 0 5 3 3 3 8 , 1 5 0 6 , 6 7 0 , 0 0 0 4 3 7 , 9 5 2 1 1 , 8 2 4 , 0 0 1 4 . 6 1 % 1,990 20 0 8 -- 3, 9 1 7 , 9 0 8 2 2 5 , 3 9 8 -- 6, 9 2 9 , 6 4 0 1 1 , 0 7 2 , 9 4 6 3 . 3 9 % 1,877 20 0 9 -- 3, 7 0 9 , 0 2 7 1 5 5 , 4 4 8 -- 6, 6 6 8 , 4 6 2 1 0 , 5 3 2 , 9 3 7 3 . 0 3 % 1,794 20 1 0 - - 3 , 4 9 1 , 0 2 8 8 8 , 6 1 3 -- 6, 4 0 5 , 5 2 8 9 , 9 8 5 , 1 7 1 3 . 0 4 % 1,774 20 1 1 - - 3 , 2 6 3 , 5 1 5 4 5 , 0 9 2 -- 6, 1 3 2 , 6 1 8 9 , 4 4 1 , 2 2 5 2 . 9 2 % 1,677 20 1 2 - - 3 , 0 2 6 , 0 7 0 - -- 5, 8 4 9 , 7 8 8 8 , 8 7 5 , 8 5 8 2 . 9 4 % 1,572 20 1 3 - - 2 , 7 7 8 , 2 6 1 - -- 5, 5 5 3 , 5 7 0 8 , 3 3 1 , 8 3 1 2 . 6 5 % 1,476 No t e : D e t a i l s r e g a r d i n g t h e V i l l a g e ' s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e n o t e s t o t h e f i n a n c i a l s t a t e m e n t s . VI L L A G E O F T E Q U E S T A , F L O R I D A RA T I O S O F O U T S T A N D I N G D E B T B Y T Y P E LA S T T E N F I S C A L Y E A R S Go v e r n m e n t a l A c t i v i t i e s B u s i n e s s - t y p e A c t i v i t i e s 94 (2 ) As s e s s e d ( A ) ( B ) ( A - B ) R a t i o o f N e t N e t Va l u e o f G r o s s D e b t S e r v i c e N e t O / S D e b t t o O u t s t a n d i n g Fi s c a l Y e a r E n d i n g ( 1 ) T a x a b l e O u t s t a n d i n g F u n d s O u t s t a n d i n g V a l u e o f D e b t Se p t e m b e r 3 0 , P o p u l a t i o n P r o p e r t y D e b t A v a i l a b l e ( O / S ) D e b t T a x a b l e P r o p e r t y P e r C a p i t a 20 0 4 5 , 6 4 8 6 0 3 , 2 8 5 , 3 1 0 $ 1 3 , 4 5 7 , 8 8 3 $ 2 7 2 , 8 0 1 $ 1 3 , 1 8 5 , 0 8 2 $ 2 . 1 9 % 2 , 3 3 4 $ 20 0 5 5 , 6 8 6 7 1 5 , 9 9 3 , 7 1 2 1 2 , 9 8 9 , 4 6 3 2 9 4 , 4 4 4 1 2 , 6 9 5 , 0 1 9 1 . 7 7 % 2 , 2 3 3 20 0 6 5 , 7 0 2 8 2 5 , 4 0 6 , 1 8 7 1 2 , 5 5 3 , 5 6 5 3 7 8 , 6 8 0 1 2 , 1 7 4 , 8 8 5 1 . 4 8 % 2 , 1 3 5 20 0 7 5 , 9 4 2 9 8 1 , 9 6 0 , 4 9 9 1 1 , 8 2 4 , 0 0 1 4 8 2 , 7 2 6 1 1 , 3 4 1 , 2 7 5 1 . 1 5 % 1 , 9 0 9 20 0 8 5 , 8 9 8 1 , 0 1 7 , 3 8 8 , 6 2 8 1 1 , 0 7 2 , 9 4 6 3 6 9 , 4 9 0 1 0 , 7 0 3 , 4 5 6 1 . 0 5 % 1 , 8 1 5 20 0 9 5 , 8 7 2 9 2 6 , 2 0 7 , 0 3 6 1 0 , 5 3 2 , 9 3 7 - - 1 0 , 5 3 2 , 9 3 7 1 . 1 4 % 1 , 7 9 4 20 1 0 5 , 6 2 9 8 3 3 , 9 0 6 , 4 2 6 9 , 9 8 5 , 1 7 1 - - 9 , 9 8 5 , 1 7 1 1 . 2 0 % 1 , 7 7 4 20 1 1 5 , 6 2 9 7 8 0 , 2 2 2 , 2 5 7 9 , 4 4 1 , 2 2 5 - - 9 , 4 4 1 , 2 2 5 1 . 2 1 % 1 , 6 7 7 20 1 2 5 , 6 4 6 7 6 5 , 0 1 7 , 5 8 5 8 , 8 7 5 , 8 5 8 - - 8 , 8 7 5 , 8 5 8 1 . 1 6 % 1 , 5 7 2 20 1 3 5 , 6 5 2 7 7 9 , 9 1 1 , 0 4 2 8 , 3 3 1 , 8 3 1 - - 8 , 3 3 1 , 8 3 1 1 . 0 7 % 1 , 4 7 4 (1 ) F l o r i d a E s t i m a t e s o f P o p u l a t i o n - B u r e a u o f E c o n o m i c a n d B u s i n e s s r e s e a r c h , U n i v e r s i t y o f F l o r i d a (2 ) F o r m D R - 4 2 2 " C e r t i f i c a t e o f F i n a l T a x a b l e V a l u e " LA S T T E N F I S C A L Y E A R S VI L L A G E O F T E Q U E S T A , F L O R I D A RA T I O O F N E T O U T S T A N D I N G D E B T T O A S S E S S E D V A L U E A N D N E T B O N D E D D E B T P E R C A P I T A 95 (1 ) 7 7 9 , 9 1 1 , 0 4 2 $ D e b t l i m i t a t i o n - 1 0 % o f t o t a l a s s e s s e d v a l u e ( 2 ) 7 7 , 9 9 1 , 1 0 4 -- - - -- -- 77,991,104 $ 20 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 De b t L i m i t 71 , 4 6 3 , 9 7 3 $ 8 2 , 5 6 5 , 4 4 8 $ 9 8 , 1 6 2 , 7 3 8 $ 1 0 1 , 6 9 5 , 6 5 3 $ 9 3 , 1 3 0 , 7 7 2 $ 8 3 , 4 4 2 , 5 2 0 $ 8 3 , 3 9 0 , 6 4 3 $ 7 8 , 0 2 2 , 2 2 6 $ 7 6 , 5 0 1 , 7 5 9 $ 77,991,104 $ To t a l N e t D e b t A p p l i c a b l e t o L i m i t 32 2 , 1 9 9 1 9 5 , 5 5 6 1 , 0 2 3 - - - - - - - - - - - - -- Le g a l d e b t m a r g i n 71 , 1 4 1 , 7 7 4 $ 8 2 , 3 6 9 , 8 9 2 $ 9 8 , 1 6 1 , 7 1 5 $ 1 0 1 , 6 9 5 , 6 5 3 $ 9 3 , 1 3 0 , 7 7 2 $ 8 3 , 4 4 2 , 5 2 0 $ 8 3 , 3 9 0 , 6 4 3 $ 7 8 , 0 2 2 , 2 2 6 $ 7 6 , 5 0 1 , 7 5 9 $ 77,991,104 $ To t a l N e t d e b t A p p l i c a b l e t o L i m i t a s a P e r c e n t a g e o f D e b t L i m i t 0. 4 5 % 0 . 2 4 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % (1 ) F o r m D R - 4 2 2 " C e r t i f i c a t e o f F i n a l T a x a b l e V a l u e " (2 ) V i l l a g e o f T e q u e s t a C h a r t e r S e c t i o n 5 . 0 2 L i m i t a t i o n s To t a l A s s e s s e d V a l u e T o t a l b o n d e d d e b t o u t s t a n d i n g L e s s a m o u n t i n d e b t s e r v i c e f u n d To t a l D e b t A p p l i c a b l e t o L i m i t a t i o n Le g a l D e b t M a r g i n Le g a l D e b t M a r g i n VI L L A G E O F T E Q U E S T A , F L O R I D A LE G A L D E B T M A R G I N I N F O R M A T I O N LA S T T E N F I S C A L Y E A R S 96 Estimate Es t i m a t e S h a r e o f Ne t P e r c e n t a g e D i r e c t a n d De b t A p p l i c a b l e t o O v e r l a p p i n g Go v e r n m e n t a l U n i t O u t s t a n d i n g T e q u e s t a D e b t (a ) ( b ) OV E R L A P P I N G Pa l m B e a c h C o u n t y 1 8 7 , 2 1 0 , 0 0 0 $ 0 . 6 2 % 1 , 1 6 0 , 7 0 2 $ P. B . C . S c h o o l B o a r d 2 6 , 3 7 0 , 0 0 0 0 . 6 2 % 1 6 3 , 4 9 4 Su b t o t a l , o v e r l a p p i n g d e b t 1 , 3 2 4 , 1 9 6 DI R E C T D E B T Vi l l a g e o f T e q u e s t a 2 , 7 7 8 , 2 6 1 2 , 7 7 8 , 2 6 1 To t a l d i r e c t a n d o v e r l a p p i n g d e b t 4 , 1 0 2 , 4 5 7 $ Ov e r l a p p i n g g o v e r n m e n t s a r e t h o s e t h a t c o i n c i d e , a t l e a s t i n p a r t , w i t h t h e g e o g r a p h i c b o u n d a r i e s o f t h e V i l l a g e o f T e q u e s t a . T h i s s c h e d u l e es t i m a t e s t h e p o r t i o n o f t h e o u t s t a n d i n g d e b t o f t h o s e o v e r l a p p i n g g o v e r n m e n t s t h a t i s b o r n e b y t h e r e s i d e n t s a n d b u s i n e s s e s o f t h e V i l l a g e of T e q u e s t a . T h i s p r o c e s s r e c o g n i z e s t h a t , w h e n c o n s i d e r i n g t h e V i l l a g e ' s a b i l i t y t o i s s u e a n d r e p a y l o n g - t e r m d e b t , t h e e n t i r e d e b t b u r d e n bo r n e b y t h e r e s i d e n t s a n d b u s i n e s s e s s h o u l d b e t a k e n i n t o a c c o u n t . H o w ev e r , t h i s d o e s n o t i m p l y t h a t e v e r y t a x p a y e r i s a r e s i d e n t a n d th e r e f o r e r e s p o n s i b l e f o r r e p a y i n g t h e de b t o f e a c h o v e r l a p p i n g g o v e r n m e n t . VI L L A G E O F T E Q U E S T A , F L O R I D A DI R E C T A N D O V E R L A P P I N G G O V E R N M E N T A L A C T I V I T I E S D E B T AS O F S E P T E M B E R 3 0 , 2 0 1 3 No t e : F o r d e b t r e p a i d w i t h p r o p e r t y t a x e s , t h e p e r c e n t a g e o f o v e r l a p p i n g d e b t a p p l i c a b l e i s e s t i m a t e d u s i n g t a x a b l e a s s e s s e d p r o p e r t y v a l u e s . Ap p l i c a b l e p e r c e n t a g e s w e r e e s t i m a t e d b y d e t e r m i n i n g t h e p o r t i o n o f t h e V i l l a g e t a x a b l e a s s e s s e d v a l u e a n d d i v i d i n g i t b y t h e P B C t a x a b l e as s e s s e d v a l u e . ( D a t a p r o v i d e d b y t h e P B C P r o p e r t y A p p r a i s e r ' s O f f i c e ) (a ) S o u r c e s : P a l m B e a c h C o u n t y a n d P B C S c h o o l B o a r d 97 Ne t Fi s c a l P l e d g e d L e s s : A v a i l a b l e Ye a r R e v e n u e s ( 1 ) E x p e n d i t u r e s R e v e n u e P r i n c i p a l I n t e r e s t C o v e r a g e 20 0 4 4 6 4 , 9 7 3 1 4 2 , 6 7 8 3 2 2 , 2 9 5 1 0 0 , 0 0 0 4 2 , 6 7 8 2 . 2 6 20 0 5 4 5 9 , 8 7 3 1 4 1 , 4 9 0 3 1 8 , 3 8 3 1 0 5 , 0 0 0 3 6 , 4 9 0 2 . 2 5 20 0 6 5 2 4 , 4 6 8 1 4 0 , 1 3 5 3 8 4 , 3 3 3 1 1 0 , 0 0 0 3 0 , 1 3 5 2 . 7 4 20 0 7 5 9 3 , 6 4 9 1 4 3 , 3 7 0 4 5 0 , 2 7 9 1 2 0 , 1 5 4 2 3 , 2 1 6 3 . 1 4 20 0 8 5 1 5 , 7 0 0 2 7 5 , 8 3 6 2 3 9 , 8 6 4 2 5 9 , 8 4 6 1 5 , 9 9 0 0 . 8 7 20 0 9 - - - - - - - - - - - 20 1 0 - - - - - - - - - - - 20 1 1 - - - - - - - - - - - 20 1 2 - - - - - - - - - - - 20 1 3 - - - - - - - - - - - (1 ) P l e d g e d r e v e n u e s i n c l u d e f r a n c h i s e f e e s , l i c e n s e s a n d p e r m i t s f r o m F u n d 1 0 1 . F u n d 1 0 1 c l o s e d i n f i s c a l y e a r 2 0 0 9 . (2 ) D e b t p a i d i n f u l l i n f i s c a l y e a r 2 0 0 8 . No t e : D e t a i l s r e g a r d i n g t h e V i l l a g e ' s o u t s t a n d i n g d e b t c a n b e f o u n d i n t h e n o t e s t o t h e f i n a n c i a l s t a t e m e n t s . De b t S e r v i c e ( 2 ) VI L L A G E O F T E Q U E S T A , F L O R I D A PL E D G E D - R E V E N U E C O V E R A G E LA S T T E N F I S C A L Y E A R S 98 Pe r Pa l m B e a c h Ca p i t a C o u n t y Fi s c a l P o p u l a t i o n P e r s o n a l P e r s o n a l M e d i a n U n e m p l o y m e n t Ye a r ( 1 ) I n c o m e ( 2 ) I n c o m e ( 2 ) A g e ( 3 ) R a t e ( 4 ) 20 0 4 5 , 6 4 8 1 9 7 , 5 3 3 , 1 5 2 $ 3 4 , 9 7 4 $ 4 7 . 5 5 . 7 % 20 0 5 5 , 6 8 6 1 9 8 , 8 6 2 , 1 6 4 3 4 , 9 7 4 4 7 . 5 3 . 1 % 20 0 6 5 , 7 0 2 1 9 9 , 4 2 1 , 7 4 8 3 4 , 9 7 4 4 7 . 5 3 . 7 % 20 0 7 5 , 9 4 2 2 5 6 , 3 9 7 , 3 0 0 4 3 , 1 5 0 4 7 . 5 3 . 3 % 20 0 8 5 , 8 9 8 3 2 6 , 2 2 4 , 2 7 8 5 5 , 3 1 1 4 7 . 5 7 . 3 % 20 0 9 5 , 8 7 2 3 4 7 , 3 1 1 , 1 8 4 5 9 , 1 4 7 4 7 . 5 9 . 7 % 20 1 0 5 , 6 2 9 3 2 8 , 4 9 7 , 1 8 2 5 8 , 3 5 8 4 7 . 5 1 1 . 4 % 20 1 1 5 , 6 2 9 3 2 3 , 4 4 7 , 9 6 9 5 7 , 4 6 1 4 9 . 9 1 1 . 0 % 20 1 2 5 , 6 4 6 3 0 2 , 0 6 1 , 0 0 0 5 3 , 5 0 0 4 9 . 9 9 . 2 % 20 1 3 5 , 6 5 2 3 1 4 , 4 0 9 , 4 5 6 5 5 , 6 2 8 4 9 . 9 7 . 1 % So u r c e s : (1 ) F l o r i d a E s t i m a t e s o f P o p u l a t i o n - B u r e a u o f E c on o m i c a n d B u s i n e s s r e s e a r c h , U n i v e r s i t y o f F l o r i d a . (2 ) U S D e p a r t m e n t o f C o m m e r c e , B u r e a u o f E c o n o m i c A n a l y s i s , R e g i o n a l E c o n o m i c I n f o r m a t i o n S y s t e m , A p r i l 2 0 1 1 (3 ) U . S . C e n s u s B u r e a u , 2 0 1 0 C e n s u s (4 ) U . S . D e p a r t m e n t o f L a b o r , B u r e a u o f L a b o r S t a t i s t i c s , L a b o r M a r k e t S t a t i s t i c s C e n t e r , L o c a l A r e a U n e m p l o y m e n t S t a t i s t i c s P r o g r a m VI L L A G E O F T E Q U E S T A , F L O R I D A DE M O G R A P H I C A N D E C O N O M I C S T A T I S T I C S LA S T T E N F I S C A L Y E A R S 99 Percentage of Percentage of Total County Total County Employees Rank Employment Employees Rank Employment School Board of Palm Beach County 20,810 1 3.56% 18,672 1 3.34% Palm Beach County 11,636 2 1.99% 10,734 2 1.92% Tenet Healthcare Corporation 6,100 3 1.04% 4,705 3 0.84% Florida Power & Light (Headquarters) 3,804 4 0.51% 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 0.39% 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 0.36% Delray Community Hospital 2,000 10 0.36% 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 Employer VILLAGE OF TEQUESTA, FLORIDA PRINCIPAL EMPLOYERS - PALM BEACH COUNTY (1) CURRENT YEAR AND EIGHT YEARS AGO 2012 2004 100 Fu n c t i o n / P r o g r a m 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 Go v e r n m e n t a l A c t i v i t i e s Ge n e r a l g o v e r n m e n t 1 2 . 0 1 1 . 5 1 0 . 5 9 . 5 1 5 . 0 1 5 . 0 1 0 . 0 1 0 . 5 1 0 . 5 1 1 . 5 Pu b l i c s a f e t y 4 5 . 0 4 5 . 0 4 6 . 0 5 1 . 0 5 0 . 0 4 9 . 0 5 0 . 0 4 9 . 0 5 0 . 0 5 3 . 0 Tr a n s p o r t a t i o n - - 3 . 0 4 . 0 4 . 0 4 . 0 4 . 0 4 . 0 4 . 0 5 . 0 Le i s u r e s e r v i c e s 2 . 0 2. 0 3. 0 3. 0 3. 0 3. 0 3. 0 3. 0 3.0 3.0 To t a l G o v e r n m e n t a l A c t i v i t i e s 59 . 0 58 . 5 62 . 5 67 . 5 72 . 0 71 . 0 67 . 0 66 . 5 67.5 72.5 Bu s i n e s s - T y p e A c t i v i t i e s Wa t e r 1 4 . 5 1 4 . 0 1 5 . 0 1 5 . 5 1 5 . 0 1 6 . 0 1 5 . 0 1 4 . 5 1 4 . 5 1 6 . 5 St o r m w a t e r - - 1 . 0 1 . 0 1 . 0 1 . 0 1 . 0 1 . 0 1 . 0 1 . 0 Co m m u n i t y d e v e l o p m e n t ( 1 ) 2 . 5 - - - - - - - - - To t a l B u s i n e s s - T y p e A c t i v i t i e s 17 . 0 1 4 . 0 1 6 . 0 1 6 . 5 1 6 . 0 1 7 . 0 1 6 . 0 1 5 . 5 15.5 17.5 To t a l P r i m a r y G o v e r n m e n t 76 . 0 7 2 . 5 7 8 . 5 8 4 . 0 8 8 . 0 8 8 . 0 8 3 . 0 8 2 . 0 83.0 90.0 No t e : T h e V i l l a g e w a s a b l e t o a c c e s s t h i s d a t a f r o m 2 0 0 2 . So u r c e : V i l l a g e o f T e q u e s t a H u m a n R e s o u r c e D e p a r t m e n t (1 ) C o m m u n i t y D e v e l o p m e n t a c t i v i t i e s ( p l a n n i n g , b u i l d i n g a n d c o d e e n f o r c e m e n t ) w e r e a c c ou n t e d f o r i n a n e n t e r p r i s e ( b u s i n e s s - ty p e a c t i v i t y ) f u n d u n t i l f i s c a l y e a r 2 0 0 5 w h e n t h e f u n d w a s c l o s ed . P l a n n i n g a n d b u i l d i n g a c t i v i t i e s a r e c u r r e n t l y a c c o u n t e d f or in th e G e n e r a l F u n d , a n d c o d e e n f o r c e m e n t a s pa r t o f t h e f u n c t i o n o f P u b l i c S a f e t y . No t e s : A f u l l - t i m e e m p l o y e e i s s c h e d u l e d t o w o r k 2 , 0 8 8 h o u r s p e r ye a r ( i n c l u d i n g v a c a t i o n a n d s i c k l e a v e ) . F u l l - t i m e - e q u i v a l e nt em p l o y m e n t i s c a l c u l a t e d b y d i v i d i n g t o t a l l a b o r h o u r s b y 2 , 0 8 8 . VI L L A G E O F T E Q U E S T A , F L O R I D A FU L L - T I M E E M P L O Y E E S B Y F U N C T I O N / P R O G R A M LA S T T E N F I S C A L Y E A R S 101 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 817 853 965 887 881 595 622 691 Fire department: No. of full-time certified firefighters 16 19 20 21 21 22 21 21 No. of emergency responses 1,254 1,122 1,143 1,189 1,043 1,096 1,155 1,372 No. of transports 622 521 621 651 562 622 695 675 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. of building 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 2.349 mg 2.351 mg2.175 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 department during the FY 2012. VILLAGE OF TEQUESTA, FLORIDA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST EIGHT FISCAL YEARS 102 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 VILLAGE OF TEQUESTA, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST EIGHT FISCAL YEARS 103 Page Intentionally Left Blank REPORTING SECTION Marcum LLP n 525 Okeechobee Boulevard n Suite 750 n West Palm Beach, Florida 33401 n Phone 561.653.7300 n Fax 561.653.7301 n marcumllp.com 104 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 Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta (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. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village’s internal control over financial reporting (internal control) 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 deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 105 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. West Palm Beach, FL March 21, 2014 Marcum LLP n 525 Okeechobee Boulevard n Suite 750 n West Palm Beach, Florida 33401 n Phone 561.653.7300 n Fax 561.653.7301 n marcumllp.com 106 MANAGEMENT LETTER 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 statements of the Village of Tequesta, Florida, as of and for the fiscal year ended September 30, 2013, and have issued our report thereon dated March 21, 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 Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in that report, which is dated March 21, 2014, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditors’ reports or schedule:  Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations reported in the preceding annual financial report.  Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Village of Tequesta complied with Section 218.415, Florida Statutes.  Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.  Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. 107  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 management letter, unless disclosed in the notes to the financial statements. The Village was incorporated in 1957 By laws of Florida 57-1915. There are no component units related to the Village.  Section 10.554(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 218.503(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(1), Florida Statutes.  Section 10.554(1)(i)6.b., Rules of the Auditor General, requires that we determine whether the annual financial 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(1)(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(1)(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. West Palm Beach, FL March 21, 2014