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Home My WebLink AboutDocumentation_Regular_Tab 02_04/12/2018 TlILL�4GE OF T�QUEST�1, FLOR�D14 2017 COMPREHENSIVE �4NNUfIL FIN�4NCIAL REPOR�' � .� _ . :�, �t_ . + ti•..,� .� � � ` ' '� -�-� �„ ,� � f . � � r , �"`'_ • � " ... �� 4� ,c ♦ � - ' ..y� .. .� `+ . � '-• �. ,�. �^t '�'V �.L � 'r ``� ��. �� ~� Y1 1'�'�� " - :1-1, ��'• w'"�. �,.. . „� ' t'�-1/� � f'� �' _ . �� .:. 4 �� r "'�- *' �-�,,,1,. ,•�„. . � .".+�/+. _. . "� ' � ,..t A`" ' �/�l, o � -.` � �M*� '�'r►� r�_ . � ,�. �r'.�� Ge� , „�. .. . . . '� '� ��`y ��. '•G' `�fr �� .. '." \"�. . .. ._ ~� M.�" �, �++C�� v,.�,-. ��w� �.1 z...�. - •1 __ ` �- _ � Y � •' .\�ii�� 1 . � ' �;`! " � ._� '� .�� ' 1�."�, � ` � ' ♦ `� '-�. ... : �,-�'�r: `i�- � ��ry •� ' `��'��';�b �"`::,.s'�' �'�' — � �" lrj 't ' � r ,.i ` �Y -�� —�� - o - �' - . _ '` -�� Yj1�'' ,K,..�,, , �r`''- ' "'� '- `� �� .. �!" r ��=- 1. � - ,,,, �. ,�..,'i�"tt. �rC��, a r �.- "i'o� j �.,.�t }.t'- � -. /• ' �• F� �� it�H3�t.��;��'� ' ♦f I' � � � 1��'��f �� y '�t,+�� ' ��r��."��; - ~� �S � �� i��.,.0 . �,I,ys- � +i� 81� �. ��. ' �� •A t'� � � � - •+,� � ��i •� . �� ' � � '� � �� a ._ �,.. � .+rr 1� 1iW� ,`i�•�� FISC�IL 2''E�IR ENDED SEPTEMBER 30, 201 ; VILLAGE OF TEQUESTA COUNCIL MEMBERS 2017 � . , , , , ( "'.�(\ , �°�'� 'r +. '�'� . �� r �� i '� i.~ ,1'�., .� . '{��., . - ' � 3� _ t ; . . . � .._-. � >� ��',� �� r #' � ,s ; - .. r.�' '�'F ,'r ;�+ . ;_.•� �• ,� `' 1. �� i a i i .s � r .. � J"',^t i, �!'' '` t''�►, �`��i� �► � � . �°' a tr .,r �'`� --' � �t � � � :�� -� � � �.4 � � �i� +R7�.� .�r" ,� �� - N� ' ' ' 'a� � � .'' � i �•'• r`� � .. \a� u. � �� .,t. F' "�`. d� `r� '. .��- ',�:-� . . � . 4 • r.. �,.: '.n :�' � -:�� ^�' � v "..�- -� vL..�, =�.1:� '° .s� �' � a�;'!a�� .'r'"�� '�:��: _ _ �J I t � , � , G �."> From left to right:Council Member Thomas Paterno, Council Member Vince Arena, Mayor Abby Brennan, Vice-Mayor Frank D'Ambra,Council Member Steve Okun VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Prepared By Finance Department The Village of Tequesta,Florida VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS I. INTRODUCTORY SECTION Letter of Transmittal i-iii Certificate of Achievement for Excellence in Financial Reporting iv Organizarion Chart v List of Principal Officials vi II. FINANCIAL SECTION INDEPENDENT AUDITORS'REPORT 1-3 MANAGEMENT'S DISCUSSION AND ANALYSIS(Required Supplementary Information) 4-18 BASIC FINANCIAL STATEMENTS Govemment-Wide Financial Statements Statement of Net Position 19 Statement of Activities 20 Fund Financial Statements Balance Sheet—Governmental Funds 21 Reconciliation of the Balance Sheet of Govemmental Funds to the Statement of Net Position 22 Statement of Revenues,Expenditures and Changes in Fund Balances— Governmental Funds 23 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 Statement of Net Position—Proprietary Funds 25 Statement of Revenues,Expenses and Changes in Net Position—Proprietary Funds 26 Statement of Cash Flows—Proprietary Funds 27 Statement of Fiduciary Net Position—Fiduciary Funds 28 Statement of Changes in Fiduciary Net Position—Fiduciary Funds 29 Notes to Basic Financial Statements 30-96 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule—General Fund 97 Note to the Budgetary Comparison Schedule 98 Firefighters' Pension Trust Fund Schedule of Changes in the Village's Net Pension Liability and Related Ratios 99 Schedule of Village Contributions 100 Schedule of Investment Retums 101 Police O�cers' Pension Trust Fund Schedule of Changes in the Village's Net Pension Liability and Related Ratios 102 Schedule of Village Contributions 103 Schedule of Investment Retums 104 General Employees' Pension Tnzst Fund Schedule of Changes in the Village's Net Pension Liability and Related Ratios 105 Schedule of Village Contributions 106 Schedule of Investment Retums 107 Schedule of Funding Progress-Other Post Employment Benefits 108 Schedule of Village's Proportionate Share of the Net Pension Liability— Florida Retirement System Pension 109 Schedule of the Village's Proportionate Share of the Net Pension Liability— Retiree Health Insurance Subsidiary Program 110 Schedule of the Village's Contributions—Florida Retirement System Pension Plan 111 Schedule of the Village's Contributions—Retiree Health Insurance Subsidy Program 112 VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS II. FINANCIAL SECTION(CONTINUED) SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Combining Balance Sheet—Nonmajor Govemmental Funds 113 Combining Statement of Revenues,Expenditures and Changes in Fund Balances— Nonmajor Govemmental Funds 114 Budgetary Comparison Schedule—Special Law Enforcement Trust Fund 115 Budgetary Comparison Schedule—Capital Improvement Fund 116 Budgetary Comparison Schedule—Capital Projects Fund 117 Combining Statement of Fiduciary Net Position 118 Combining Statement of Changes in Fiduciary Net Position 119 III. STATISTICAL SECTION Net Position by Component 120 Changes in Net Position 121-122 Fund Balances,Govemmental Funds 123 Changes in Fund Balances,Governmental Funds 124 Assessed and Estimated Actual Value of Taxable Property 125 Property Tax Rates—All Direct and Overlapping Governments 126 Principal Property Taxpayers 127 Property Tax Levies and Collections 128 Ratios of Outstanding Debt by Type 139 Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita 130 Computation of Legal Debt Margin 131 Direct and Overlapping Govemmental Activities Debt 132 Pledged-Revenue Coverage—Revenue Bonds- 1994 133 Demographic and Economic Statistics 134 Principal Employers—Palm Beach County 135 Full-dme-Equivalent Village Government Employees by Function/Program 136 Operating Indicators by Function/Program 137 Capital Asset Statistics by Function/Program 138 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 139-140 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 141-142 Independent Accountants'Report On Compliance Pursuant To Section 218.415 Florida Statutes 143 � �'�i��i��</:`��«��f<r ,,� .3=�5 Teque.rta Drive Teyuesta, FL 33469-0273 (561) 768-0424 �r��•�r.Teguestn.org March 29,2018 To the Honorable Mayor, Members of the Village Council And Citizens of the Village of Tequesta, Florida Florida law requires that every general purpose local government publish,within nine months of the close of each fiscal year, a complete set of audited financial statements. This report is published to fu(fill that requirement for the fiscal year ended September 30, 2017. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Marcum LLP, Certified Public Accountants, have issued an unmodified ("clean") opinion on the Village of Tequesta's financial statemen[s for the fiscal year ended September 3Q 2017.The independent auditors' report is located at the front of the financial section of this repo�t. Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and provides a narrative introduction, overview, and analysis of the basic financial st�tements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE VILLAGE OF TEQUESTA The Village of Tequesta, Florida (the Village) is a municipaf corporation organized June 4, 1957 pursuant to Special Act 57-1915, Laws of Florida. It is approximately 2 square miles and is located in noi�them Palm Beach County, Florida. It is almost completely built-ouVdeveloped. The Village's growth potential is restricted by the natural boundaries of the Atlantic Ocean to the east, the Loxahatchee River to the west,the Town of Jupiter to the south and Martin County to the no►th. It is e►npowered by state statute to extend i[s corporate limits by annexation, which it has done from time to time. The Village has a Council-Manager form of government. Policy-making and legislative authority are vested in an elected governing body of tlle Village consisting of a five-member Village CounciL Council members are elected at large and select a Mayor at their first organizational meeting each year. Council members serve two- year terms,with three rnembers elected every other year. The Village Council appoints[he Village of Tequesta's manager, who is responsible for hiring a(I Village employees. i The Village provides a full range of services, including police and fire protection; building inspections; licenses and permits; the construction and maintenance of streets and other infrastructure, recreational and culturll activities, water services, storm water operations and contracts for residential refuse and recycling services. The Council is required to adopt an initial budget prior to the beginning of the fiscal year October l. This annual budget serves as the foundation for the Village of Tequesta's financial planning and control. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police) and is adopted by fund total. Departments may transfer resources within a department with the approval of the budget officer and the Village Manager.Transfers between departments require budget amendments be approved by the Village Council,while changes to the total fund budget requires approval of the Village Council by resolution. Local Economy The Village, located in Palm Beach County, is the third most populous county in the State of Florida (approximately 1.44 million). The latest population estimate prepared by the Bureau of Economic and Business Research, University of F(orida indicates that current population of the Village of Tequesta is 5,731.Tequesta is home to middle to upper-income suburban families; has a small commercial area and no major industries located within its boundaries. It is home to a number of assisted living facilities, private schools and a high-end treatment center. According to the Bureau of Labor Statistics, U.S. Department of Labor, over the past year,43 states, including Florida,had job growth from a year earlier. The national unemployment rate for September 2017 was 4.7�10 with the unemployment rate in Florida at 4.6%.The unemployment rate for Palm Beach County at the fiscal year end was 3.7%. According to analysis by Florida TaxWatch and CareerSource Palm Beach County,"...candidates are leaving existing jobs for better positions 1nd those who have been out of the labor force are returning to employment"which indicates economic growth. According to the U.S. Census Bureau, the median household income for Tequesta was$54,730 which continues to be significantly higher than Florida as a whole ($48,900).Tequesta continues to see a positive change in the housing market as property values continue to increase, another indicator of a growing economy. Per the Palm Beach County Property Appraiser's Office, gross taxable value for calculating ad valorem proceeds increased from $930 million during fiscal year 2016 to $1.020 billion used to calculate 2017 revenues. Based upon these indicators, the Village is developing its operating budget with the expectation that the economy will continue to improve and that there will be a steady increase in property values over the next few years. Long-Term Financial Planning and Major Initiatives The continued goal of the Village is to maintain a consistently high quality of services to the residents, while protecting the assets, the level of service and the quality of life that the residents have come to expect. It is the result of hard work by the Village staff, and fiscally sound, responsible decisions by the Village Council that al(ows the Village to meet service demands while minimizing the financial burden on its residents.The Village is very fortunate to have a citizenry that is active on many boards and committees, a working staff that has shown its willingness to take on additional responsibilities, an expanded workload and very importantly, a Village Council that is very responsive to the needs of the residents and staff and who donate so much of their time to this community. The Village's primary focus is providing exceptional municipal services to its residents in the most efficient and cost effected manner possible.Continued economic challenges require innovative approaches on both sides of the balance sheet. Efforts to expand contractual services to generate additional revenue should continue to be considered. ii The Village continues researching ways to control the growing cost of health care and post-retirement benefits and has implemented changes 1nd negotilted concessions with the current bargaining units.The Village continues to discuss options with the three collective bargaining units to control the cost of post-retirement benefits. MAJOR INITIATIVES • Continue to explore alternative revenue sources, at both the state and federal level, with the assistance of a professional lobbyist. • Continue to find ways to reduce the cost of health care and retirement costs. • Implement 16-year capital improvement/capital replacement plan. • To keep on track with maintenance and improvements outlined in a utility revenue sufficiency and rlte adequacy study to meet the Village's objectives for a sustained high quality utility service by providing a stable funding plan. • Develop plans and specifications for the constn►ction of the new Community Center. • Implement 5-ye�r automatic read meters and technology for the Villlge Water Uti(ity. Relevant Fina�tcial Policies The Village has adopted a comprehensive set of financial policies.The Village implemented new ERP software in August of 2017.This implementation has allowed Department Heads to have more information in real time to control their budgets. It has streamlined the financial process and moved the Village closer to a paperless organization. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Associltion (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village for its comprehensive annual financial report for the fiscal year ended September 30, 2016. This was the thirty-fourth consecutive year that the Village has received this prestigious award. The Village must publish an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year.We believe that our current comprehensive annual financial report will continue to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Village's finance department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. In closing, we must also acknowledge the Mayor and Council for their unfailing support for maintaining the highest standards of professionalism in the management of the Village's finances. Respectfully submitted, � � Michael R.Couzzo,Jr. Chr�s pher . uirk,CPA Village Manager Finance Director ii i . Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to � Village of Tequesta Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2016 P� ��t Executive Directar/CEO iv VILLAGE OF TEQUESTA, FLORIDA ORGAIVIZATION CHART SEPTEMBER 30, 2017 �- { � Residen[s of Tequesb � V�IIapeGoimcil I Villagc Managcr Yillagc Attomcy � Executive nssiscan[ Departrnents f s Human Resaurces Vlllage tlerk Fnance General Gosremment ppvel pment � 8uilding Refuse&Rr.cydmg R Code Enforcement Police Oepartment fire Rescue J EMS Ixubiic Warks Leisure Serv¢es Utdities �Wacer Uohty�System 5[ormwater Utlltty System V VILLAGE OF TEQUESTA, FLORIDA LIST OF PRINCIPAL OFFICIALS SEP1'EMBER 30,2017 VILLAGE COUNCIL Abby Brennan Mayor Frank D'Ambra Vice-Mayor Steve Okun Councilmember Thomas Paterno Councilmember Vince Arena Councilmember VII.LAGE OFFICIALS Michael R. Couzzo,Jr. Village Manager Corbett,White,Davis&Ashton, PA Village Attomey Lori McWilliams,MMC Village Clerk Christopher Quirk,CPA Finance Director Joel Medina Fire Chief Christopher L.Elg Police Chief NZ Consultants,Inc. Planning and Zoning Director Jose Rodriques Acting Building Official Michael R. Couzzo,Jr. Utilities/Public Works Director Greg Corbitt Parks and Recreation Director Merlene Reid,MS, SPHR Human Resources Director VILLAGE INDEPENDENT AUDITORS Mazcum LLP vi . � �-' � '3 1 FINANCIAL SECTION � . , � _ � ;} , � INDEPENDENT AUDITORS' REPORT - CUM ACCOUNTANTS , ADVISORS INDEPENDENT AUDITORS' REPORT To The Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida RepoK 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, 2017 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 and 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 assessinent 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. � 1 MARCUM�=:�?OUF M E M 8 E R Marcum ur - 525 Okeechobee Boulevard � Suite 750 West Palm Beach,Floritla 33401 � Phone 561.653J300 � Fax 561.653.7301 mal'qlmllp.Com We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion,the fmancial statements referred to above present fairly, in all material respects,the respecrive fmancial position of the governmental acriviries,the business-type activities, each major fund, and the aggregate remaining fund informarion of the Village of Tequesta, Florida as of September 30, 2017 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and the budgetary comparison schedule, schedules of changes in net pension liability (assets) and related ratios, contributions, investment returns, funding progress, proportionate share of the net pension liability — Florida Retirement System Pension and Retiree Health Insurance Subsidy Program on pages 4-18 and 97-112 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 operarional, 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 informarion 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 pmvide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village's basic fmancial statements. The combining and individual fund statements and schedules, the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. 2 The combining and individual fund 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 fmancial statements themselves, and other addirional procedures in accordance with audiring standazds generally accepted in the United States of America. In our opinion, the combining and individual fund 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 29, 2018 on our consideration of the Village's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on the effecriveness of the Village's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Village's internal control over fmancial reporting and compliance. °�Q�,�!cl�,(, L G� West Palm Beach, Florida March 29, 2018 3 . �- ; � � �} , MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) Management's Discussion and Analysis 2017 Village of Tequesta, Florida Management's Discussion and Analysis As management of the Village of Tequesta, we offer readers of the Village's financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended September 30, 2017. 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 iii of this report. Financial Hi¢61i¢hts • The assets and deferred outflows of resources of the Village of Tequesta exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by$31,919,629. Of total net position, 22.1% ($7,040,985) is unrestricted and may be used to meet the ongoing obligations to the citizens and creditors. • The Village of Tequesta's total net position increased during the current period. Governmental activities changed net position by $53,722. The business-type activities net position increased by $523,260 due mainly to the increase in water usage. • At the close of the current fiscal year, the Village of Tequesta's governmental funds reported a change in combined fund balances of$(26,622). • At the end of the current fiscal year, unrestricted fund balance(the total of the committed, assigned, and unassigned components of fund balance)reported in the general fund was$2,692,943. • The Village of Tequesta's total outstanding noncurrent liabilities decreased$(858,647)due mainly to current year principal payments. • The Village did not expend $750,000 or more in federal awards or state financial assistance in the fiscal year ended September 30, 2017 and therefore did not meet the threshold for a single audit according to the Florida Single Audit Act(section 215.97 F.S.)or OMB Uniform Guidance. 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) govemment-wide financial statements,2) fund financial statements, and 3)notes to the financial statements. This report also includes supplementary information intended to fumish additional detail to support the basic financial statements themselves. Government-wide Financial Statements: The government-wide financial statements are designed to provide readers with a broad overview of the Village of Tequesta's fmances, 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. 4 Management's Discussion and Analysis 2017 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 fuhue fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the govemment-wide financial statements distinguish funcrions 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 includes general government, public safety, transportation and leisure services. The business-type activities of the Village includes water, stormwater and refuse and recycling. The government-wide financial statements can be found on pages 19-20 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village of Tequesta, like other state and local governments,uses fund accounting to ensure and demonstrate compliance with 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 govemment-wide financial statements, govemmental 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 yeaz. 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 govemment-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 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 govemmental 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 21-24 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. 5 Management's Discussion and Analysis 2017 Proprietary funds provide the same type of information as the government-wide financial statements,only in more detail. The proprietary fund financial statements provide separate information for the Water fund and the Stormwater Fund,major funds,as well as the Refuse and Recycling fund,a nonmajor fund. The basic proprietary fund financial statements can be found on pages 25-27 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the Village. Fiduciary funds are not reported in the government-wide financial statement because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Village of Tequesta maintains one type of fiduciary fund—a Pension trust fund which is used to report resources held in trust for retirees and beneficiaries covered by the Public Safety Pension Plan (which includes the Firefighters' Pension Trust Fund and the Police Officers' Pension Trust Fund) and the General Employees'Pension Plan. The fiduciary fund financial statements can be found on pages 28-29 of this report. Notes to basic financial statements: The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund fmancial statements. The notes to the basic fmancial statements can be found on pages 30-96 of this report. Other information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information conceming the Village of Tequesta's progress in funding its obligation to provide pension benefits and OPEB benefits to its employees, as well as the Village's net pension liability (assets) and related ratios, contributions and pension investment returns. Required supplementary information can be found on pages 97-112 of this report. The combining statements referred to earlier in connection with non-major governmental funds and fiduciary funds are presented immediately following the required supplementary information on pensions and OPEB. Combining and individual fund statements and schedules can be found on pages 113-119 of this report. Government-wide Overall Financial Analysis Net position over time, may serve as a useful indicator of a government's financial position. In the case of the Village of Tequesta,assets and defened outflows of resources exceeded liabilities and deferred inflows at the close of the most recent fiscal year. This change is discussed below. Village of Tequesta's Total Net Position The Village of Tequesta's total assets and defened outflows exceeded total liabilities and deferred inflows by $31,919,629 at the close of the 2017 fiscal year. Net Position in governmental activities recorded a change of 0.42%. The Village's business-type activities recorded a 2.84% change in total net position. The majority of this change was due to a change of current and other assets by $(40,839) and investment in capital assets of $832,043. 6 Management's Discussion and Analysis 2017 • � � � � � � �• �• � , � � , Current and other asscts S 6_'S7J00 S 5,9G9.G62 $ 6,551_9R3 $ 6,627.007 $ I?,809.681 S I?.596.669 Capital assets,net 12,098,060 13,463,825 17A65,712 17,014,504 29,I63.773 39.478.329 ----—— - ---- _ -_ Totalassets 18355,760 IR,433,487 23,617.695 23,641,511 41,973.455 42.074,998 Total deferred outflows of �, resources 1,801.913 1,419,601 536,853 487,159 2.338.766 I•906•7601i Noncurrentliabilities 5,176,601 5,673,775 4,666,268 5,027,741 9.842,869 10,701,516'i Otherliabilities 8�6,333 572,304 375,852 532,365 1,202,185 1,104,669 ----- -__— -- __---- -- — Totalliabilities 600�,934 6,246,079 5,042,120 5,560,106 I1,045,054 II,806,185 Total deferred intlows of resources I,197,025 703,017 150,513 129,909 1.347,538 832,926 I� Net position Net investment in capitalassets 10,023,291 9,94R,379 13,078,584 12,321,453 23,101,875 22,269,832'; Restncted 1,776,769 I,343,543 - - 1.776,769 1343,543'! Unrestricted 1,157,654 1,6I2,070 S.R83,331 6,117.202 7,040,985 7,729,2721 ------- ___— _.______. � Total net position $ l2 957,714 $ I',903,992 $ I R,961 9I5 $ 18,438,655 $ 31,919,629 $ 31,342,647 The largest portion of the Village's total net position (72.4%) represents investments in capital assets (e.g., land, buildings, machinery and equipment), less any related outstanding debt and deferred inflows/outflows used to acquire those assets. The Village uses these capital assets to provide services to citizens; consequently, they are not available for future spending. Although the Village's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Village of Tequesta's net position(4.9%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of$7,040,985 is unrestricted and may be used to meet the government's ongoing obligations to its citizens and creditors. At the end of the current fiscal year, the Village 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. 7 Management's Discussion and Analysis 2017 r----- — --------- - _- -- -- _ _ _ _ _ _ _ i � Village of Tequesta Net Position i � � � � � ' � Resn�icted ■''016 Uuresri�icted � �'_017 � i Net Iuvestmeuts iu i capital assets � ; , , I , � _ _ __- ' - -- — � --- _. � $- $10.000,000 $?0.000.000 $30.000,000 8 Management's Discussion and Analysis 2017 Village of Tequesta's Changes in Net Position � � � � � � � �� • � . i i � i i , i i � Revenues: Program Revenues: ', Charges for Services � 2,725,162 $ 2,618,282 $ 6,321,176 $ 5,(42,301 $ 9,046,338 $ 8,260,583�, Operating Grants&Contributions 33,892 83,333 - - 33,892 83,333 iGenerat Revenues: �, Ad valorem Taxes 6,098,723 5,683,707 - - 6,098,723 5,683,707 I Other Taxes 1,512,354 1,271,278 - - 1,512,354 1,271,278� Franchise fees on gross receipts 452,496 449,l26 - - 452,496 449,l26'i Unrestricted intergovernmental 830,570 822,390 - - 830,570 822,390'', Unrestricted investment earnings 15,605 8,465 28,064 14,601 43,669 23,066 I Gain on sale of capital assets 9,336 9,336 OtherMiscellaneous 32,676 50,164 30,796 25,408 63,472 75,572I __ __ _ _ __-- - _ _-- - -- Total Revenue 11,710,814 10 986,745 6,380,036 5,682,310 18,090,850 16,669,055 i � Expenses: I General govemment 2,201,162 1,918,843 - - 2,201,162 1,918,843'I Public safety 7,004,196 7,270,731 - - 7,004,196 7,27Q731 � Transpor[ation 1,650,162 1,381,760 - - 1,650,162 1,381,760',, Leisure Services 690,068 663,524 - - 690A6A 663,524''', [nterest expenseiother fiscal charges 111,504 I 17,709 194,583 225,335 306,087 343,044', Water utility services - - 4,844,157 4,501,514 4,844,157 4,501,514 Stormwater services - - 338,758 490,405 338,758 490,405, Refuse&recycling services - - 479,278 489,874 479,278 489,874''', Total Expenses 11,657,092 I 1,352,567 5,856,776 _ 5,707,128 17,513,868 17,059,695'', [ncrease(decrease)in net position 53,722 (365,822) 523,260 (24,818) 576,982 (390,640)I et position-beginning $ 12,903,992 $ 13,269,812 $ I8,438,655 $ 18463475 $ 31,342,647 $ 31,733,287 I et posrtion-ending $ __12,957,714 $ 12,903,990 $_l8 961,915 $ 18 438,657 $ 31,919,629 $ 31,342 647', � -- . _ - : - -- For fiscal year ending September 30, 2017, the Village of Tequesta's overall net position increased from the prior fiscal year. While revenues increased in both governmental activities and business-type activities revenues exceeded expenses for FYE 9-30-2017 by $576,982. Revenues increased in business-type activities due mainly to an increase in water rates. As mentioned above, the largest changes were due to an increase in pension expense (NPL) and consumption of capital assets. Governmental Activities-Expenses and Program Revenues Governmental activities. Overall program revenues increased from the prior year due to increases in property values and permit fees allowing for an overall increase in net position of$53,722. 9 Management's Discussion and Analysis 2017 Ezpenses and Program Revenues- Governmental Activities in ?housands $s.000 $�.000 $6.000 ' $5.000 $4.000 $3.000 : $�'.000 ' . $1.000 � ---- . _ � �- ....� $o _ a,�`'`� c°�� `°,, �"`�, �� `, `�� 5` 1% ', 4 J,o� C�1'�e, `^`'��'Q .�ta ��JO � �� ;J' �:,- �� ■Revenues ■Expenses The Village's programs/functions include General Government, Public Safety, Transportation and Leisure Services. The net cost shows the extent to which the Village's general revenues support each of the Village's programs/functions. The net cost of all governmental activities this year was $8,898,038, a 3% increase from the prior period. The largest increase in net cost was from the function of transportation which increased $268,402 (19%). As shown on the Statement of Activities, the functions directly benefiting from the programs generated revenue of approximately $2.8 million with $8.9 million financed through general revenues. 10 Management's Discussion and Analysis 2017 The following is a comparison of revenues by source for governmental activities for fiscal year 2017 and 2016. Revenues bv Source - Governmental�ctivities in Thousands $7.000 � 2016 �6.000 2017 $5_000 $4.000 $3.000 $'_'.000 $1.000 . —� ~ � ~� $0 "' — "4� y� ;`v� O�� Z. _J`� `pC�y `�� ,�y. `�. , � c C� L� -�\ ,�L� �`y� �T.1 ,��T ,;,}.� �J� �`� �J� E�b �`r °� �`�� ,;,' ,a z� ``�� tr �.s �o `1 P��v a�r0 �,�� , J�y L•� O� ,��7 O J �i`D� Business-type Activities. The Village of Tequesta's business-type activities reported operating revenues exceeding expenses by$-. Non-operating revenues were $58,860. This resulted in a change in net position of $523,260 from the prior year. 11 Management's Discussion and Analysis 2017 T'otal Re�enues/Espenses-Business-T'ype Acti�ities i,' in Thousands �� ; $6.000 .� � $5.000 $4.000 ' $3.000 $2.000 $1.000 .__��-�- � , $o -- V�'ater Ltiliry Refiise&Recycling StoiYn��-ater Utility ■Re��enue ■Expeuses As shown in the chart below, revenues from charges for services reported in business-type activities increased$678,875 from the prior year. Increased rates in the Water Utility resulted in increased revenues of 9% ($660,810) from the prior year. Refuse and Recycling and Stormwater Utility reported smaller increases in revenues (1% and 4%). Non-operating income includes investment earnings which doubled, as well as miscellaneous revenue from payments for the construction portion of the Tropic Vista water extension. � Revenues Uy Source-Business-I'ype Acti�-ities in Thousands � $i.000 , tl�;�- i, $6.000 � - i I $5.000 � � � � �1.000 ` ,-. 2017 ` 2016 ; $3.000 � � �� a 3 �1.00� � �'. �'� 1�1� 1�16 � �1,�� t. , . ___ . . . .. __...'� � �� ,� _... � . .. .. ._._. ...___. ...-_____ _- � Charges for Sen�ices �Ion-opzratu�Q � � � 12 Management's Discussion and Analysis 2017 Financial Analvsis of the Villa�e's Funds As noted earlier, the Village of Tequesta uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds: The focus of the Village's governmental f'unds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Village's financing requirements. In particular, unassigned 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, 2017 the Village of Tequesta's governmental funds reported total combined fund balances of$4,741,903. $1,478,525 (31%)of the combined governmental fund balances is unassigned and is available for spending at the Village's discretion. Approximately 27% is assigned with the largest portion ($1 million) assigned for hurricane/disaster emergency. Approximately $1.8 million is restricted for a particular purpose (i.e. debt service, Law Enforcement Trust funds, etc.). $212,042 is in nonspendable form (i.e. inventories, prepaid items, etc.). Total combined fund balances have increased 0.56% from the prior year. Governmentat Funds � Components of Fund Balance September 30, 2017 and 2016 � I 2016 -��.� ___..�_.._____.�__� i ; , �Ionspeudable Resn�icted � ■Assianed _..,.^�. Uua ssi��ed 'O 1' _ . _ I i i , � $0 $500.000 $1.000.000$1.500.000$''.000,000$''.500.000 13 Management's Discussion and Analysis 2017 The General Fund is the chief operating fund of the Village of Tequesta. At the end of the current fiscal year total fund balance was $4,345,896, an increase of$35,634 from the prior year. Unassigned fund balance of $1,478,525, decreased 29% from the prior year. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents approximately 13% of fiscal year 2016 General Fund expenditures and total fund balance represents approximately 38% of total expenditures. The Village of Tequesta adopted a policy to keep unassigned fund balance at a minimum of two months(17%) of expenditures. - ------ -- - ------ ---------_. . __-- _ _---------_ __ __ ------- - ' Genei•al Fund Components of Fund Balance SeptemUei•30,2017 and 2016 � I � i 2016 vonspendable. ; � Resu•icted i ! ' ■AssiQued � ■Unassiened 2017 � ' ; � $0 $500.000 $1.000.000 $1.500.000 $"'.000.000 $?.500.000 14 Management's Discussion and Analysis 2017 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 � � � . , . • ' • i I i i I � Advaioreintaxes $ 6,098,723 52.1% $ 415,016 7.3°%0 $ 5,683,707 Other taxes 1,512,354 12.9% 241,076 19.0% 1,271,278 Charges for services 1,272,994 10.9% 26,693 2.1°/o 1,246,301 Intergovernmental 836,780 7.2% 10,790 1.3% 825,990 Intragovernmental 561,350 4.8% 11,000 2.0% 550,350 Franchise fees 452,496 3.9% 3,370 0.8% 449,126 Licenses and permits 646,126 5.5% 91,535 16.5% 554,591 Rents and Royalties 203,965 1.7% 5,283 2.7% 198,682 Fines and forfeitures 32,743 0.3% (23,201) -41.5% 55,944 Misc.,grants and contributions 68,342 0.6% (39,780) -36.8% 108,122 Investment earnings 15,605 0.1% 7,140 84.3% 8,465 Total Revenue $ 11,701,478 100% $ 748,922 6.8% $ 10,952,556 As noted in the table above, total General Fund revenues increased $748,922 (6.8%). The two largest increases were due to: 1) increased property values resulting in increased revenue from ad valorem taxes and 2) increased permit fees which is indicative of the cyclical nature of this revenue. Expenditures in the General Fund are shown in the following schedule: � � • � � � � � . _ � � i � � i , Public Safety $ 6,630,�34 57.3% S 476,225 7.7`% $ 6,154,309 General government 2,104,039 18.2% 292,262 16.1% 1,811,777 Transportation 1,306,439 11.3% 277,727 27.0% 1,028,712 Leisure services 629,764 5.4% 20,755 3.4% 609,009 Debt service 552,180 4.8% (1,359) -0.2% 553,539 �Capital outlay 346,224 3.0% 85,033 32.6% 261,191 Total expenditures $ l 1,569,180 100% $ 1,150,643 I1.0% $ 10,418,537 Total General fund expenditures increased from the prior year 11.0%. Only expenditures in public safety and for capital outlay reported decreases. The increase in capital outlay $85,033 was mainly due to capital projects funded and reported in the capital projects fund rather than the general fund. The decreases were offset by increases in expenditures in the functions o£ general government, transportation and leisure services. The cost of debt decreased .1% from the prior year due to principle payments offset by capital 15 Management's Discussion and Analysis 2017 leases entered into during the year. Below is a graphic presentation of how the Village expends funds and how they compare to the prior period. ; General Fund-Espenditures by Source � in Thousands $7.000 $6.000 $�,000 $4.000 $3,000 $2.000 ��- $1,000 $o - � � �� 2 017 ;��'s ,�Eo` ,��o� ��`' •;� �,� 2016 S`� �c,�� ,�,r _�� 7�C' J , � ��,, � ,�o ` .�� F Q�.1� �\`�� ti�}�� .-�.�y O� .l�` � .� �L � ,�` � j j�C1 F, " v-__'_-__'_._ _ _-_ _" . .. -.._' . '_".f.� Ending fund balances for the Capital Projects Fund is $4,313 and the Capital Improvement fund is $55,836 at September 30, 2017. 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. General Fund Budgetary Highlights The General Fund original budget was increased by $612,163. Major areas that increased were in General government,Public safety and Capital Outlay. Proprietary funds: The Village's proprietary funds provide the same type of information found in the government-wide financial statements,but in more detail. 16 Management's Discussion and Analysis 2017 The table below summarizes the operating income (loss) and the change in net position for each of the Village's proprietary funds. At the end of the year, total net position of the proprietary funds was $18,961,915 a decrease of $523,260 from the prior period as shown below. Other factors concerning the finances of this major fund have already been addressed in the discussion of the Village's business-type activities. � . � � . . � � • � � • � � � ' � � Operating Income(Loss) Change in Net Position 2017 2016 2017 2016 Water $ 643,148 $ 324,981 $ 505,358 $ 138,433 � Stormwater 1,360 (165,400) 3,243 (164,333)�� Refuse and Recycling 14,475 927 14,659 1,082 ' ', $ 658,983 $ 160,508 $ 523,260 $ (24,818)i Capital Assets and Debt Administration Capital assets: The Village's capital assets for its governmental and business-type activities total $29,163,772 (net accumulated depreciation) as of September 30, 2017. The Village acquired $1,330 thousand in assets during the year and disposed of$325 thousand during the year. Additional information on the Village's capital assets can be found in Note 3 D., Capital Assets, starting on page 52 of this report. � � � � �• � i i � i i , i i � Land S 634,017 $ 634,017 � 83,335 � 83,335 $ 717,352 $ 717,352 Construction in progress 7,915 31,505 - 837,117 7,915 868,622 Buildings 8,043,526 8,043,526 979,512 979,512 9,023,038 9,023,038 Improvements 2,394,434 2,385,930 58,720 58,720 2,453,154 2,444,650 In&astructure 4,614,815 4,614,815 34,108,994 32,596,845 38,723,809 37,211,660 Machinery&Equipment 4,486,247 4,374,107 1,833,281 1.778,302 6,319,528 6,152,409 [ntangibles 307,599 201,377 129,096 48,649 436,695 250,026 Other-K-9 25,763 25,763 - - 25,763 25,763 Total capital assets 20,514,316 20,311,040 37,192,938 36,382.480 57,707,254 56,693,520 Lessaccumulateddepreciation (8,416,256) (7,847,215) (20,127,226) _(19,367,976) (28,543,482) _ (27,215,191) Total capital assets,net $ 12,098,060 $ 12,463,825 $ 17,065,712 $ 17,OI4,504 $ 29,163,772 $ 29,478,329 17 Management's Discussion and Analysis 2017 Noncurrent liabilities: At the end of the current fiscal year, the Village had a total of $9,842,869 of noncurrent liabilities. The largest portion are debt instruments in the form of promissory notes with Bank of America that are secured by general revenue sources. The table below summarizes the Village's debt position. In implementing GASB No. 68 in 2015, the Village recognized a net pension liability (NPL) of$2,483,968. The Village is presenting the NPL as a separate component of the noncurrent liabilities on the face of the financial statements to present more clearly the Village's long-term pension obligations. A more detailed explanation can be found in Note 3.K—Noncurrent Liabilities starting on page 92. � •� � , � � � •� �� i , i i , i � , Notes payable $ 1,674,029 $ 1,968,023 $ 4,244,561 $ 4,59?,420 $ 5,918,590 $ 6,560,443 Capitaf leases 400,739 547,423 - - 400,739 547,423 Compensa[ed absences 534,608 517,571 155,433 163,10A 690,041 680,679 Net OPEB Obligation __262,234_ _ 230,126 83,657 73,415 345,891 303,541 Noncurrent Liabilities 2,871,610 3,263,143 4,483,651 4,828,943 7,355,261 8,092,086 Net Pension Liability 2,304,991 2,410,632 182,617 198,79A 2,487,608 2,609,430 ___ _ _ _ Total Noncurrent Liabilities $ 5,176,601 $ 5,673,775 $ 4,666,268 $ 5,027,741 $ 9,842,869 $ 10,701,S16 Economic Factors and Next Year's Budgets and Rates The following economic factors currently affect the Village of Tequesta and were considered in developing the 2016-2017 fiscal year budgets. • The Village Council's decision to hold the millage rate at 6.292 as the Village expects property values to rise. • There has been a positive move in the housing market, new home construction is increasing and inventory of homes has decreased significantly from the prior period. The Village is experiencing increased revenues from permits as remaining inventory in commercial areas develop. • Interest rates remained low as the Federal Reserve continues to remain slow in taking any action to raise rates significantly. • Revenues from sales taxes increased from the prior year and the State of Florida continues to work to capture online sales taxes. • The CPI remains lower than 2%, (the number the federal government is looking for). • The U.S. Gross Domestic Product has been growing at a 1.9%. • The Village of Tequesta's water rates increased 10% during the year to fund capital needs. 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. 18 ,�- 1 ,`� � ',., BASIC FINANCIAL STATEMENTS VILLAGE OF TEQUESTA,FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30,2017 Business- Govemmental type Activities Activities Total Assets Cash $ 2,346,689 $ 1,760,321 $ 4,107,010 Investments 2,576,601 3,973,588 6,550,189 Receivables,net 432,904 637,103 1,070,007 Inventories 34,204 129,015 163,219 Prepaid items 177,838 51,956 229,794 Net pension asset 689,464 - 689,464 Capital assets not being depreciated 641,932 83,335 725,267 Capital assets being depreciated,net 11,456,128 ___ _16,982,377 ____28,438,505 Total Assets 18,355,760 23,617,695 41,973,455 Deferred Outtlows of Resources Deferred outflows-pensions 1,801,913 279,420 2,081,333 Deferred charge on refunding - 257,433 257,433 Total Deferred Outflows ot Resources 1,801,913 536,853 2,338,'l66 Liabilities Accounts payable 306,691 273,850 580,541 Accrued liabilities 225,694 67,890 293,584 Customer deposits - 33,933 33,933 Unearned revenue 287,959 - 287,959 Due to other govemments 5,989 179 6,168 Noncurrent liabilities: Due within one year 470,414 376,778 847,192 Due in more than one year 2,138,962 4,023,216 6,162,178 Net OPEB obligation 262,234 83,657 345,891 Net pension liability due within one year 2,738 902 3,640 Net pension liability due in more than one year 2,302,253 181,715 2,483,968 Total Liabilities 6,002,934 5,042,120 11,045,054 Deferred Intlows of Resources Deferred inflows-pensions 1,197,025 I 50,513 1,347,538 Total Deferred Inflows of Resources i,197,025 150,513 1,347,538 Net PosiNon Net investment in capital assets 10,023,291 13,078,584 23,101,875 Restricted: Infrastructure 219,565 - 219,565 Debt Service 429,616 - 429,616 Building 791,730 - 791,730 Law Enforcement 335,858 - 335,858 Unrestricted 1,157,654 5,883,331 7,040,985 Total Net PosiNon $ 12,957,714 $ 18,961,915 $ 31,919,629 The acconrpanying notes are an integral part of these financial staten�ents. 19 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 • Bonds, stocks, or commingled funds administered by national or state banks, or other evidences or indebtedness,issued or guaranteed by a corporation organized under the laws of the United States, any state or organized territory of the United States, or District of Columbia provided that the securities meet the following ranking criteria: o Fixed income investments holding a rating in one of the four highest classifications by a major rating service. o Equities that are traded on a National Exchange. Concentration of Credit Risk-the risk of loss attributed to the magnitude of an investment in a single issuer.The Plan's investment policy limits exposure by: • Limiting investments in common stock or capital stock of any one issuing company or aggregate of any one issuing company to 5%of the outstanding capital stock of the company. • Limiting the value of bonds issued by any single corporation not to exceed 10% of the total fund. • Limiting investments in corporate common stock and convertible bonds not to exceed 70% of the fund assets at fair value. • Limiting investments in foreign securities not to exceed 25%of the fair value of the fund. Custodial Credit Risk— the risk that,in the event of the failure of the counterparty,the 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 investrnent 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, 2017,the Plan's investment portfolio was held with a third-party custodian. • Requiring securities transactions between a broker-dealer and the custodian involving purchase or sale of securities by the transfer of money or securities to be made on a"delivery vs.payment"basis to ensure that the custodian will have the security or money in hand at the conclusion of the transaction. Foreign Currency Risk- is the risk of an investment's value changing due to changes in currency exchange rates.Exposure to foreign currency risk is low as: • Foreign investments are through ADR's (shares listed in the U.S.), mutual funds (registered in the U.S.),or Yankee bonds(traded in U.S.dollars). • The investment policy permits a maximum of 25% of the fair value of the fund securities (including equities and fixed income securities)to be invested in foreign securities. • At September 30, 2017, 15.5% of the fair value of the fund was invested in international equity mutual fund. • All the international securities are denominated in U.S. dollars. There is no foreign currency risk. Money Weighted Rate oJReturn and TargetAllocation For the fiscal years ended September 30,2017 and 2016,the overall annual money-weighted rate of retum(long-term expected real rate of return)on the General Employees' Pension Plan investments was 12.52% and 3.97% respectively. The money-weighted rate of return expresses investment performance, net of investment manager and consultant expenses adjusted for the changing amounts actually invested. 50 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 The long-term expected rate of return on pension plan investments, shown below by asset class, is developed using best-estimate ranges of expected future real rates of return (expected retums, net of pension plan investment expenses and inflation). These ranges are combined to produce the long term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of retum for each major asset class included in the tazget asset allocation as well as the long-term expected real rate of return as of September 30, 2017 and 2016 are as follows: Long-Term Expected Real Target Rate of Return Asset Class Allocation Range 2017 2016 Domestic Equity 50% 45%-55% 7.5% 7.5% International Equity 15% 10%-20% 8.5% 8.5% Total Equities 65% 60%-70% Domestic Core Fixed Income 20% 15%-25% 2.5% 2.5% Diversified Fixed Income 5% 0%-10% 3.5% 3.5% Total Fized Income 25% 20%-30% Core Real Estate 10% 5%-15% 4.5% 4.5% C. Receivables Below is the detail of receivables for the general,water,and nonmajor enterprise fund including the applicable allowances for uncollectible accounts: Storm- Nonmajor General Water water Funds Total Accounts $ 223,188 $ 632,503 $ - $ 2,068 $ 857,759 Intergovernmental 178,492 265 2,239 2,907 183,903 Other taxes 48,504 - - - 48,504 Gross receivables 450,184 632,768 2,239 4,975 1,090,166 Less: allowance for uncollectibles (17,280) (2,879) - - (20,159) Net Total Receivables $ 432,904 $ 629,889 $ 2,239 $ 4,975 $ 1,070,007 51 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 D, Capital Assets Capital assets activity for the fiscal year ended September 30, 2017,was as follows: Beginning Ending Balance Additions Deductions Balance Goveromenhl Activities Capital assets not being depreciated: Land $ 634,017 $ - $ - $ 634,O17 Construction-in-progress 31,505 7,915 (31,505) 7,915 Total Capital Assets Not Being Deprecisted 665,522 7,915 (31,505) 641,932 Capital assets being depreciated: Buildings 8,043,526 - - 8,043,526 Improvements other than buildings 2,385,930 8,504 - 2,394,434 Infrastructure 4,614,815 - - 4,614,815 Machinery and equipment 4,374,107 265,088 (152,948) 4,486,247 Intangibles 201,377 106,222 - 307,599 Other K-9 25,763 - - 25,763 Total Capital Assets Being Depreclated 19,645,518 379,814 (152,948) 19,872,384 1819 Less accumulated depreciation for: Buildings (2,525,182) (201,091) - (2,726,273) Improvementsotherthanbuildings (1,197,522) (89,858) - (1,287,380) Infrastructure (724,019) (110,425) - (834,444) Machinery and equipment (3,206,737) (289,490) 152,948 (3,343,279) Intangibles (184,553) (27,445) - (211,998) Other K-9 (9,202) (3,680) - (12,882) Total Accumulated Depreciatlon (7,847,215) (721,989) 152,948 (8,416,256) ToWI Capital Assets Being Deprecisted,Net I 1,798,303 (342,175) - I 1,456,128 Governmenml AcNvities Capitsl Assets,Net $ 12,463,825 $ (334,260) $ (31,505) $ 12,098,060 Depreciation expense was charged to the functions/programs of the governmental activities of the Village as follows: Governmental Activiries General government $ 95,503 Public safety 388,222 Transportation 183,961 Leisure services 54,303 Total Depreciation Ezpense-Governmental Activities $ 721,989 52 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Beginning Ending Balance Additions Deductions Balance Business-type Activities: Capital assets not being depreciated: Land $ 83,335 $ - $ - $ 83,335 Constructioninprogress 837,117 - (837,117) - Total Capital Assets Not Being Depreciated 920,452 - (837,117) 83,335 Capital assets being depreciated: Buildings 979,512 - - 979,512 Improvements other than buildings 58,720 - - 58,720 Infrastructure 32,596,845 1,682,549 (170,400) 34,108,994 Machinery&Equipment 1,778,302 56,448 (1,469) 1,833,281 Intangible 48,649 80,447 - 129,096 Total capital assets being depreciated 35,462,028 1,819,444 (171,869) 37,109,603 Less accumulated depreciation for: Buildings (671,582) (20,440) (692,022) Improvements other than buildings (22,314) (2,349) - (24,663) Infrastructure (17,331,211) (713,477) 170,400 (17,874,288) Machinery&Equipment (1,338,004) (177,078) 1,469 (1,513,613) Intangible (4,865) (17,775) - (22,640) Total Accumulated Depreciation (19,367,976) (931,119) 171,869 (20,127,226) Total Capital Assets Being Depreciated,Net 16,094,052 888,325 - 16,982,377 Business-type Activity Capital Assets, Net $ 17,014,504 $ 888,325 $ (837,117) $ 17,065,712 Depreciation expense charged to the water and stormwater funds of the business-type activities was $931,119. 53 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR TIiE FISCAL YEAR ENDED SEPTEMBER 30,2017 E. Accrued Liabilities Accrued liabilities reported by governmental funds at September 30,2017,were as follows: Total General Govemmental Fund Funds Salary and employee benefits $ 220,704 $ 220,704 Other 4,990 4,990 Total Accrued LiabiliNes $ 225,694 $ 225,694 F. Pension Ob[igations Florida Retirement System (FRS) - a Statewide Local Government Emp[oyees' Retirement System (SLGERS) General lnformation. Full time employees hired before January l, 1996 are eligible to participate in the Florida Retirement System (FRS), as provided by Chapters 121 and 112, Florida Statutes, a cost-sharing, multiple-employer defined benefit plan administered by the State Board of Administration("SBA"). The FRS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. A post-employment health insurance subsidy is also provided to eligib(e employees. Benefits are established by Chapter 121, Florida Statutes and Chapter 22B, Florida Administrative Code. Amendments to the law can only be made by an act of the Florida Legislature. The State of Florida issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000 or visiting the website at www.dms.mvflorida.com/workforce_onerations/retirement/publications. Plan Description:The FRS is a cost-sharing multiple-employer defined benefit pension plan,with a Defened Retirement Option Program("DROP")for eligible employees. Benefits Provided—Benefits under the Pension Ptan are computed on the basis of age,average final compensation, and service credit. For Pension Plan members enrolled before July 1,2011: Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with a least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service 54 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 regardless of age,are entitled to a retirement benefit payable monthly for life,equal to 3.0%of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regazdless of age aze entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3.33% for judges and justices) of their final average compensation based on the five highest years of salary for each year of credited service. For Plan members enrolled on or after July,2011,the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Officers' class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also,the final average compensation for all these members will be based on the eight highest years of salary. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July l, 2011, the annual cost-of-living adjustment is three percent per year. If the member is initially enrolled before July l, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest.There are no required contributions by DROP participants. Contributions — Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contriburion rates established by the Florida Legislature. These rates are updated as of July 1 of each year. Contribution rates during the 2016-2017 fiscal year were as follows: Class Employee Employer�>> Regular 3% 5.80% Special Risk 3% 20.85°/a Special Risk Administrative Support 3% 26.34% Elected County,City Officers' 3% 40.75% Senior Management Service 3% 20.05% DROP participants - 11.33% Reemployed Retiree �2� �Z� 55 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Notes: �i> This rates include the normal cost and unfunded actuarial liability contributions but do not include the 1.66 percent contribution for the Retiree Health Insurance Subsidy and the fee of 0.06 percent for administration of the FRS Investrnent Plan and provision of educational tools for both plans. �2�Contribution rates are dependent upon retirement class in which reemployed. The Village's total contributions to the Pension Plan totaled $49,477 for the fiscal yeaz ended September 30,2017. This excludes the HIS defined benefit pension plan contributions. Pension LiabiGties, Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources The total pension liability for the FRS was determined by an actuarial valuation as of the valuation date of July 1, 2017, calculated based on the discount rate and actuarial assumptions below. The total pension liability is calculated using the Individual Entry Age Normal cost allocation method, which differs from the Ultimate Enhy Age Normal cost allocation method used in the actuarial valuation for funding purposes for the System. The net pension liability was measured as of June 30,2017. At September 30, 2017, the Village reported a liability of$561,097 for its proportionate shaze of the Pension Plan's net pension liability. The Village's proportionate share of the net pension liability was based on the Village's 2016-2017 fiscal year contributions relative to the 2015-2016 fiscal year contributions of all participating members. At June 30, 2017 Measurement Date, the Village's proportionate share was 0.001896924%, which was a decrease of 0.00037°/a from its proportionate share measure as of June 30,2016. For the fiscal year ended September 30, 2017, the Village recognized pension expense of$93,454 as follows: Service Cost $ 39,338 Interest Cost 236,815 Effect of Plan Changes 1,749 Effect of economic/demographic gains or losses (difference between expected and actuarial experience) 10,620 Effect of assumptions changes or inputs 37,657 Member contributions (14,129) Projected investment earnings (199,780) Changes in proportion and differences between contributions and proportionate share of contributions - Net difference between projected and actual investment eamings (19,164) Administrative expenses 348 Total $ 93,454 56 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Defened Defened Inflows/Outflows of Resources Inflows Outflows Effect of economic/demographic gains or losses (differences between expected and actual experience) $ (3,108) $ 51,495 Effect of assumptions changes or inputs - 188,568 Changes in proportion and differences between contributions and proportionate share of contributions (170,912) 3,769 Net differences between projected and actual investment earnings (13,905) - Village Pension Plan contributions subsequent to the measurement date - 10,250 Total $ (187,925) $ 254,082 The defened outflows of resources related to the Pension Plan contributions subsequent to the measurement date, totaling$10,250 will be recognized as a reduction of the net pension liability in the fiscal year ended September 30,2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows: Fiscal Year Ending Amount 2018 $ (24,911) 2019 23,357 2020 20,416 2021 (2,122) 2022 28,756 Thereafter 10,411 $ 55,907 Discount Rate The discount rate used to measure the total pension liability was 7.10%. The Pension Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Discount rate 7.10% Long-term expected rate of retum,net of investment expense 7.10% Municipal bond rate N/A 57 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Actuarial Assumptions The actuarial assumptions that determined the total pension liability as of June 30, 2017, were based on the results of an actuarial experience study for the period July 1,2008—June 30,2013. Valuation Date July 1, 2017 Measurement date June 30,2017 Inflation 2.60% Salary increases including inflation 3.25% Mortality Generational RP-2000 with Projection Scale BB Actuarial cost method Individual Entry Age Sensitivity Analysis The following presents the Village's portion of the net pension liability of the FRS, calculated using the discount rate of 7.10%, as well as what the FRS's net pension liability would be if it were calculated using a discount rate that is one percentage point lower(6.10%)or one percentage point higher(8.10%)than the current rate. 1% Current 1% Decrease Discount Rate Increase 6.10% 7.10% 8.10% Village's proportionate share of net pension liability $ 1,015,552 $ 561,097 $ 183,796 Long-Term Ezpected Rate of Return The long-term expected rate of retum assumpion of 7.10% on Pension Plan investments was not based on historical returns, but instead is based on a forward-look capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation assumption. The target allocation and best estimated of arithmetic and geometric real rates of return for each major asset class aze summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation Return Return Deviation Cash 1% 3.0% 3.0% 1.8% Fixed income 18% 4.5% 4.4% 4.2% Global equity 53% 7.8% 6.6% 17.0% Real estate 10% 6.6% 5.9% 12.8% Private equity 6% 11.5% 7.8% 30.0% Strategic investments 12% 6.1% 5.6% 9.7% Assumed Inflation-Mean 2.6% 1.9% 58 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Pension Plan Fiduciary Net Position—Detailed information regarding the Pension Plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. Pavables to the Pension Plan — At September 30, 2017 the Village reported a payable in the amount of$1,051 employee and$6,022 employer for outstanding contributions to the Pension Plan, both FRS and Retiree Health Insurance Subsidy(HIS). The Retiree Health Insurance Subsidy(HIS)Program Plan Description —HIS Program is a cost-sharing multiple-employer defined benefit pension plan established under Section 112363, Florida Statutes. The Florida Legislature establishes and amends the contribution requirements and benefit terms of the HIS Program. The benefit is a monthly payment to assist retirees of state-administered retirement systems in paying their health insurance costs and is administered by the Department of Management Services, Division of Retuement. Benefits Provided — For the fiscal year ended June 30, 2017, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5. The payments are at least $30 but not more than $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under a state-administered retirement system must provide proof of eligible health insurance coverage,which can include Medicare. Contributions—For the fiscal yeaz ended June 30, 2017, the contribution rate was 1.66%of payroll pursuant to section 112.363, Florida Statutes. HIS contributions are deposited in a separate trust fund from wich HIS payments are authorized. The Village's total contributions to the HIS Plan totaled$6,501 for the fiscal year ended September 30,2017. Pension Liabilities, Pension Ezpense, Deferred Outflows of Resources, and Deferred Intiows of Resources Actuarial valuations for the HIS Program are conducted biennially.The July 1,2016,HIS valuation is the most recent valuation and was used to develop the liabilities for June 30,2017. At September 30, 2017, the Village reported a liability of$129,440 for its proporrionate share of the Pension Plan's net pension liability, of which $3,640 represents Village's net pension liability due withi one year. The Village's proportionate share of the net pension liability was based on the Village's 2016-17 fiscal year contributions relative to the 2015-16 fiscal year contributions of all participating members. At June 30, 2017, the Village's proportionate share was 0.001210575%, which was a decrease of 0.00039%from its proportionate share measured as of June 30,2016. The total pension liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected to the measurement date. Any significant changes during this period have been reflected as prescribed by GASB No. 67. 59 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 For the fiscal year ended September 30,2017,the Village recognized pension expense of$9,845 as follows: Service Cost $ 3,687 Interest Cost 4,085 Effect of Plan Changes - Effect of economic/demographic gains or losses (difference between expected and actuarial experience) (52) Effect of assumptions changes or inputs 2,140 Member contributions - Projected investment earnings (50) Changes in proportion and differences between contributions and proportionate share of contributions - Net difference between projected and actual investment eamings 33 Administrative expenses 2 Total $ 9,845 In addition,the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Inflows/Outflows of Resources Inflows Outflows Effect of economic/demographic gains or losses (differences between expected and actual experience) $ (270) $ - Effect of assumptions changes or inputs (11,193) 18,195 Changes in proportion and differences between contributions and proportionate shaze of contributions (75,165) - Net differences between projected and actual investment earnings - 72 Village Pension Plan contributions subsequent to the measurement date - 1,395 Total $ (86,628) $ 19,662 The deferred outflows of resources related to the HIS Plan, totaling$1,395 resulting from Village contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIS 60 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Plan will be recognized in pension expense as follows: Fiscal Year Ending Amount 2018 $ (13,955) 2019 (13,968) 2020 (13,974) 2021 (11,334) 2022 (6,865) Thereafter (8,265) $ (68,361) Discount Rate The discount rate used to measure the total pension liability was 3.58%. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate.The single equivalent discount rate is equal to the municipal bond rate selected by the FRS Actuarial Assumption Conference. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Discount rate 3.58% Long-term expected rate of return,net of investment expense N/A Bond Buyer General Obligation 20-Bond Municipal Bond Index 3.58% Actuarial Assumptions The actuarial assumptions that determined the total pension liability as of June 30, 2017, were based on certain results of an actuarial experience study of the FRS for the period July 1, 2008 - June 30,2013. Valuation Date July l, 2016 Measurement date June 30,2017 Inflation 2.60% Salary increases including inflation 3.25% Mortality Generational RP-2000 with Projection Scale BB; details in valuation report Actuarial cost method Individual Entry Age 61 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Sensitivity Analysis The following presents the net pension liability of the HIS, calculated using the discount rate of 3.58%, as well as what the HIS's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (2.58%) or one percentage point higher (4.58%) than the current rate. 1% Current 1% Decrease Discount Rate Increase 2.58% 3.58% 4.58% Village's proportionate share of net pension liability $ 147,708 $ 129,440 $ 114,224 Pension Plan Fiduciary Net Position - Detailed information regarding the HIS Plan's fiduciary net position is available in the sepazately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. The �llage of Tequesta Single-Ernployer Defined Benefit Pension Plans Overview: The Village maintains two single-employer defined benefit pension plans, the Public Safety O�cers' Pension Trust Fund and the General Employees' Pension Trust Fund. The sole administration of and responsibility for the proper operation of the retirement system is vested in The Board of Trustees. The defined benefit pension plans do not issue stand alone fmancial statements. General Employees' Pension Board consists of five Trustees. Two are legal residents of the municipality, appointed by the Village Council, and two are the full time General Employee members. The fifth Trustee is selected by a majority vote of the other Trustees. Public Safety Board consists of five Trustees. Two are legal residents of the municipality, appointed by the Village Council, one is a fuli time police officer member, and one is full time firefighter member.The fifth Trustee is selected by a majority vote of the other Trustees. The Public Safety Officers' Pension Trust Fund receives contributions that may not be used to pay benefits of all employee classes, therefore, two separate trust funds, the Firefighters' Pension Trust Fund (FPTF) and the Police Officers' Pension Trust Fund (PPTF) are reflected separately in the financial statements,as well as the General Employee's Trust Fund(GPTF). Effective February 1, 2013, the PPTF was not available to new employees, however, Police officers,who began work with the Village after February 1,2013 are able to participate in a defined contribution plan(described in note 3F below). Membership in the Village of Tequesta's defined benefit pension plans as of the actuarial valuation date of October 1,2016: FPTF PPTF GPTF Number of: Rerirees and beneficiaries 4 2 3 Inactive,nonretired members 1 3 2 Active members 17 4 47 Total 22 9 52 62 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Funding Policies are presented below under each of the plans. Actuarial Assumptions and Net Pension Liability(NPL) The actuarial valuation of the liabilities for the FPTF, PPTF and GPTF as of the September 30, 2016 measurement date were deternuned as of the beginning of the year,October 1,2015 (based on actuarial valuation results as reported in the October 1, 2015 actuarial valuation). Using a measurement date of September 30, 2016 allows for timelier reporting at the end of the year. The GPTF report was dated January 12, 2016 and the FPTF and PPTF reports were dated August l, 2016. These Liabilities are used for GASB Statement No. 68 reporting for the reporting period ending September 30,2017. The total pension liability for the Village's defined benefit pension plans was determined using the following actuarial methods and assumptions, applied to all prior periods included in the measurement period. Actuarially detemuned contribution rates are calculated as of October l, two years prior to the end of the fiscal year in which contributions are reported. If significant changes occur during the year, such as benefit changes or changes in assumptions or methods, these would be noted in the footnotes. FPTF PPTF GPTF Actuarial Valuation Date Oct. 1,2015 Oct. 1,2015 Oct. 1,2015 Measurement Date of the net pension liability Sep. 30,2016 Sep. 30, 2016 Sep. 30,2016 Village's Fiscal Year Ended Date for Reporting Purposes Sep. 30,2017 Sep. 30, 2017 Sep. 30,2017 Date of the Actuarial Report Jan. 12,2016 Aug.l, 2016 Aug.l,2016 Pension Ezpense Fiscal Year Ended September 30,2017 Based on Measurement Period Ended September 30,2016 FPTF PPTF GPTF Service Cost $ 348,504 $ 110,495 $ 359,231 Interest on the Total Pension Liability 778,642 201,452 285,954 Current-Period benefit Changes - - - Employee Contributions(made negative for additions here) (68,982) (17,067) (134,829) Projected Earnings on Plan Investments(made negative for additions here) (623,228) (232,888) (277,063) Administrative Expense 27,450 27,026 44,359 Other Changes in Total Pension Liability - - - Recognition of Outflow(Inflow)of Recourses due to Liabilities 731 (84,927) (26,652) Recognition of Outflow(Inflow)of Recourses due to Assets 100,403 25,845 58,445 Total Pension Ezpense $ 563,520 $ 29,936 $ 309,445 63 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 The defened outflow of resources, resulting from the Village's contributions to the Plans subsequent to the measurement date of September 30, 2016 will be recognized as a reduction of the Village's net pension liability in the fiscal year ended September 30, 2018. The Village reported deferred outflows of resources and defened inflows of resources related to pensions from the following sources: Fire: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual experience $ 79,487 $ (347,533) Changes in assumptions - - Net difference between projected and actual earnings on pension plan investments 587,825 (16,105) Contribution subsequent to measurement date 358,578 Total $ 1,025,890 $ (363,638) Police: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual experience $ - $ (461,381) Changes in assumptions - - Net difference between projected and actual earnings on pension plan investments 188,775 (62,124) Contribution subsequent to measurement date 41,223 Total $ 229,998 $ (523,505) General: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected and actual experience $ - $ (149,976) Changes in assumptions - - Net difference between projected and actual earnings on pension plan investments 246,174 (35,866) Contribution subsequent to measurement date 305,529 Total $ 551,703 $ (185,842) 64 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Net Deferred Inflows and Deferred Outflows of Resources by Year to be Recognized in Future Pension Ezpenses Net Defened Inflows and Outflows of Resources Year Ending September 30, FPTF PPTF GPTF 2018 $ 101,134 $ (59,082) $ 31,793 2019 101,133 (59,083) 31,791 2020 109,184 (57,465) 49,725 2021 3,513 (99,651) (9,609) 2022 725 (59,449) (26,652) Thereafter 12( ,015) - (16,716) Total $ 303,674 $ (334,730) $ 60,332 Net Pension Liability(Asset) Below is a summary of components of the net pension liability (asset), by Plan, which was measured as of September 30, 2016 (measurement date in accordance with GASB Statement No. 68). Fire Police General Measurement Year Ended September 30, 2016 2016 2016 Total Pension Liability $ 10,597,615 $ 2,696,683 $ 4,042,171 Plan Net Position 8,827,021 3,386,147 4,015,694 Net Pension Liability(Asset) $ 1,770,594 $ (689,464) $ 26,477 Plan Net Position as a% of Total Pension Liability 83.29% 125.57% 9934% 65 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 In accordance with GASB Statement No. 67,information as of September 30,2017 has been disclosed: Fire Police General Measurement Year Ended September 30, 2017 2017 2017 Total Pension Liability $ 11,276,7�7 $ 2,590,022 $ 4,947,123 Plan Net Position 10,055,100 3,754,955 4,935,148 Net Pension Liability(Asset) $ 1,221,647 $ (1,164,933) $ 11,975 Plan Net Position as a%of Total Pension Liability 89.17% 144.98% 99.76% Below is a detail of the net changes in pension liability(asset): FIREFIGHTERS' PENSION TRUST CHANGES IN NET PENSION LIABILITY Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) Balances at September 30,2015 $ 10,252,464 $ 8,401,715 $ 1,850,749 Changes for the year: Service cost 348,504 - 348,504 Interest 778,642 - 778,642 Benefit changes 300,255 - 300,255 Differences between expected and actual experience (401,835) - (401,835) Contributions-employer - 60,162 (60,162) Contributions-state 394,709 (394,709) Contributions-employee - 68,982 (68,982) Net investment Income - 609,318 (609,318) Benefit payments, including refunds of employee contributions (438,149) (438,149) - Administrative expense (27,450) 27,450 Other(increase in State reserves) (242,266) (242,266) - Net Changes 345,151 $ 425,306 (80,155) Balances at September 30,2016 $ 10,597,615 8,827,021 $ 1,770,594 66 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 POLICE OFFICERS' PENSION TRUST CHANGES IN NET PENSION LIABILITY(ASSET) Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) Balances at September 30,2015 $ 2,615,403 $ 3,130,710 $ (515,307) Changes for the year: Service cost 110,495 - 110,495 Interest 201,452 - 201,452 Changes of Assumptions 75,463 - 75,463 Differences between expected and actual experience (226,384) - (226,384) Contributions-employer - 38,638 (38,638) Contributions-state - - - Contributions-members - 17,067 (17,067) Net investment income - 306,504 (306,504) Benefit payments,including refunds of employee contributions (79,746) (79,746) - Administrative expense - (27,026) 27,026 Net changes 81,280 255,437 (174,157) Balances at September 30,2016 $ 2,696,683 $ 3,386,147 $ (689,464) 67 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 GENERAL EMPLOYEES' PENSION TRUST CHANGES IN NET PENSION LIABILITY Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Balances at September 30,2015 $ 3,469,898 $ 3,564,490 $ (94,592) Changes for the year: Service cost 359,231 - 359,231 Interest 285,954 - 285,954 Differences between expected and actual experience (40,094) - (40,094) Contributions-employer - 201,704 (201,704) Contributions-member - 134,829 (134,829) Net investment income - 191,848 (191,848) Benefit payments, including refunds of employee contributions (32,818) (32,818) - Administrative expense - (44,359) 44,359 Net changes 572,273 451,204 121,069 Balances at September 30,2016 $ 4,042,171 $ 4,015,694 $ 26,477 Sensitivity of the Net Pension Liability(Asset)to Changes in the Discount Rate A single discount rate of 7% as of September 30,2017 and 7.5% for 2016 was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7%. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the total actuarially determined contribution rates and the member rate. Based on these assumptions,the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 68 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Regarding the sensitivity of the net pension liability to changes in the single discount rate, the table below presents the plan's net pension liability,calculated using a single discount rate of 7.50%and 7% as well as what the plan's net pension liability would be if it were calculated using a single discount rate that is 1-percentage-point lower or 1-percentage-point higher(amounts in parenthesis represent a net pension asset). Current Single 1% Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30,2016 6.50% 7.50% 8.50% Firefighters' $ 3,114,908 $ 1,770,594 $ 644,432 Police Officers' (347,386) (689,464) (970,907) General Employees' S65,614 26,477 (424,457) In accordance with GASB Statement No. 67, information as of September 30,2016 has been disclosed: Current Single 1% Discount Rate 1% Decrease Assumption Increase Fiscal Year Ended September 30,2017 6.00% 7.00% 8.00% Firefighters' $ 2,650,334 $ 1,221,647 $ 26,342 Police Officers' (856,458) (1,164,933) (1,417,779) General Employees' 689,209 11,975 (554,219) Village of Tequesta Public Safety Employees'Pension Plan(PSEPP) Summary of Plan Provisions A. Ordinances The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida, Chapter 2, Article III, Division 1, Section 2-61 (b), and was most recently amended under Ordinance No. 15-15, passed and adopted on August 13, 2015. The Plan is also governed by certain provisions of Chapter 175, Florida Statutes, Part VII, Chapter 112, Florida Statutes and the Intemal Revenue Code B. Effective Date Adopted August 13,2015 C. Plan Year October 1 through September 30 69 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 D. Type of Plan Qualified,govemmental defined benefit retirement plan;for GASB purposes it is a single employer plan. E. Eligibility Requirements All full-time police officers hired before February 1, 2013 and all full-time firefighters are eligible for membership on the date of employment. F. Credited Service Service is measured as the total number of yeazs and completed months of a year as a police officer or firefighter with the Village. No service is credited for any periods of employment for which the member received a refund of their contributions. G. Compensallon Total cash remuneration for services rendered as a police officer or firefighter. For firefighters and police officers hired before October 1, 2010, overtime hours are limited to 300 hours per year, effective October 1, 2013 for firefighters and October 1, 2014 for police officers. For firefighters and police officers hired before October 1, 2010, payments for unused leave earned after October l, 2013 for firefighters and October 1, 2014 for police officers aze excluded from pensionable salary. For firefighters hired on or after October 1, 2010, fixed monthly remuneration including regular earnings, vacation pay and sick pay but excluding lump sum payments, overtime, bonuses, incentives and longevity. H. Average Final Compensation(AFC) The average of Compensation over the highest 5 years during the last 10 years of Credited Service. I. Normal Retirement Eligibility - A member may retire on the first day of the month coincident with or next following the earlier of: (1) age 55 and 6 yeazs of Credited Service (10 years of Credited Service for firefighters hired on or after August 14,2015),or (2) age 52 and 25 years of Credited Service. Benefit-For police officers and firefighters hired before August 14,2015 �refighters: 70 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Credited Service onlv prior to September 1, 2015) (this section is being clarified to state, "for police officers hired before February 2013 and firefighters hired before August 14,2015. 3.0%of AFC multiplied by the first 6 years of Credited Service,plus 3.5%of AFC multiplied by the next 4 years of Credited Service,plus 4.0%of AFC multiplied by the next 5 yeazs of Credited Service,plus 3.0%of AFC multiplied by the next 6 years of Credited Service,plus 2.0%of AFC multiplied by the next 4 years of Credited Service,plus 3.0%of AFC multiplied by all years of Credited Service over 25 years I. Normal Retirement For firefighters hired before August 14, 201 S, Credited Service on or after September 1, 201 S: 3.0%of AFC multiplied by years of Credited Service For firefighters hired on or after August 14, 201 S: 2.0%of AFC multiplied by the first 10 yeazs of Credited Service 2.5%of AFC mulriplied by all years of Credited Service over 10 years Normal Form of Benefit- 10 Yeazs Certain and Life thereafter;other options are also available. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maacimum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. J. Early Retirement Eligibility - A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 and 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14,2015). Benefit - The Normal Rerirement Benefit is reduced by 3.0% for each year by which the Early Retirement date precedes the Normal Retirement date. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None Supplementa! Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. 71 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 K. Delayed ReNrement Same as Normal Retirement taking into account compensation eamed and service credited until the date of actual retirement. L. Service Connected Disability Eligibility - Any member who becomes totally and permanently disabled and unable to render useful and efficient service to the Village as a result from an act occurring in the performance of service for the Village is immediately eligible for a disability benefit. Benefit - The accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 42%of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. M. Non-Service Connected Disability Eligibility - Any member who becomes totally and permanently disabled and unable to render useful and efficient service to the Village is immediately eligible for a disability benefit. Benefit - The accrued Normal Retirement Benefit taking into account compensation eamed and service credited as of the date of disability with a minimum benefit equal to 25%of AFC. Normal Form of Benefit- 10 Yeazs Certain and Life thereafter. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. N. Death in the Line of Duty Eligibility-Members are eligible for survivor benefits regardless of Credited Service. Benefit-The member's spouse or dependent child will receive the 50%of the member's AFC as of the date of death. Normal Form of Benefct-Payable for the life of the beneficiary. 72 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. O. Ot6er Pre-Retirement Death Eligibility - Members are eligible for survivor benefits after the completion of 6 or more yeazs of Credited Service(10 years of Credited Service for firefighters hired on or after August 14,2015). Benefit - The beneficiary will receive the actuarial equivalent of the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. Normal Form of Benefit-Payable for the life of the beneficiary. COLA: None Supplemental Benefit - All retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to $20 for each year of the member's Credited Service up to a maximum of $600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. The beneficiary of a plan member with less than 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015) at the time of death will receive a refund of the member's accumulated contributions. P. Post Retirement Death Benefit determined by the form of benefit elected upon retirement. Q. Optional Forms In lieu of electing the Normal Form of benefit, the optional forms of benefits available to all retirees are the Life Annuity option or the 50%, 66 2/3%, 75% and 100% Joint and Survivor options. R. Vested Terminallon Eligibility-A member has earned a non-forfeitable right to Plan benefits after the completion of 6 years of Credited Service(10 years of Credited Service for firefighters hired on or after August 14, 2015). Benefit - The benefit is the member's accrued Normal Rerirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date. Alternatively, members can elect a reduced Early Retirement benefit any time after age 50. 73 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Normal Form of Benefit- 10 Yeazs Certain and Life thereafter; other options are also available. COLA: None Supplemental Benefit-Once in pay status, all retirees and beneficiaries receiving pension benefits will be paid a supplemental benefit equal to$20 for each year of the member's Credited Service up to a maximum of$600. The supplemental benefit ceases upon the later of the death of the retired member or beneficiary. Members terminating employment with less than 6 years of Credited Service (10 years of Credited Service for firefighters hired on or after August 14, 2015) will receive a refund of their own accumulated contributions. S. Refunds Eligibiliry - All members terminating employment with less than 6 years of Credited Service (10 years of Credited Service for firefighters on or after August 14, 2015) are eligible. Optionally, vested members(those with 6 or more years of Credited Service— 10 years of Credited Service for firefighters hired on or after August 14, 2015) may elect a refund in lieu of the vested benefits otherwise due. Benefit-Refund of the member's contributions. T. Member Contributions 5% of Compensation for police officers and for firefighters through the fiscal year ending September 30, 2016; 5.5% of Compensation for firefighters beginning in the fiscal year ending September 30, 2017; thereafter, 6% of Compensation for firefighters. Employee contriburions for firefighters would revert back to 5% of Compensation if the Village opts out of participation in Chapter 175. U. State Contributions Chapter 185 Premium Tax Revenue: None. Chapter 175 Premium Tax Revenue: The Village is permitted to use all annual Chapter 175 revenue as a credit toward the Required Employer Contribution and to apply the Chapter 175 reserve of $545,142 to reduce the Required Employer Contributions for the fiscal years ending September 30,2016 through September 30,2018,as deternrined by the Village. V. Employer Contributions Any additional amount determined by the actuary needed to fund the plan properly according to State laws. 74 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 W. Cost of Living Increases Not Applicable X. 13th Check Not Applicable Y. Deferred Retirement OpNon Plan Eligibility-Plan members who have met one of the following criteria are eligible for the DROP: (1) age 55 and 6 yeazs of Credited Service(10 years of Credited Service for firefighters hired on or after August 14,2015),or (2) age 52 and 25 years of Credited Service. Members must make a written election to participate in the DROP before the 27th year of employment. Benefit - The member's Credited Service and AFC are frozen upon entry into the DROP. The monthly rerirement benefit as described under Normal Rerirement is calculated based upon the frozen Credited Service and AFC. Firefighters have the optional sell back of vacation and sick leave when entering the DROP. Maximum DROP Period - The earlier of 5 years of participation in the DROP or 30 years of employment. There is one DROP plan participant with the assets balance rollforward of$292,172 at fiscal year ending September 30,2017. Y. Deferred Retirement Option Plan Interest Credited - The member's DROP account is credited on September 30 of each year with investment earnings or losses at the same rate earned by the pension fund less any administrative expenses. The interest rate will not be less than 0%nor greater than 7.5%. Normal Form of Benefit-Lump Sum; other options are also available. COLA: None Z. Other Ancillary Benefits There are no ancillary retirement type benefits not required by statutes but which might be deemed a Village of Tequesta Public Safety Officers' Pension Trust Fund liability if continued beyond the availability of funding by the current funding source. 75 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 AA. Changes from Previous Valuation The results as of October 1, 2014 reflect Ordinance No. 1-15 (adopted March 12, 2015) and Ordinance No. 15-15 (adopted August 13,2015)as summarized on the next page. Changes under Ordinance No. 1-15 • Payments for unused leave earned after October 1, 2013 for fighters and October l, 2014 for police officers aze excluded from pensionable salary. • Effective October 1, 2013 for firefighters and October l, 2014 for police officers, overtime hours are lunited to 300 hours per year. The Actuarial Impact Statement dated February 12, 201 S measured the financial effect of this Ordinance. Changes under Ordinance No. 15-15 For Firefighters: • The benefit multiplier for current active members is changed to a flat 3%prospectively. • The benefit multiplier for future new members is changed to 2% for the first ten years of service and 2.5%thereafter. • The vesting period is changed to ten years for future new members. • The employee contribution rate is increased from 5% to 5.5% for the fiscal yeaz ending September 30, 2017 and to 6% thereafter. The employee contribution rate would revert back to 5%if the Village opts out of participation in Chapter 175. • The optional sell back of vacation and sick leave is allowed upon entering the DROP. For sick leave, 25% of the available balance could be sold back for members with less than ten years of service and 50% of the available balance could be sold back for members with at least ten years of service. The maximum accrual of sick leave is 1,600 hours. For vacation leave, 100% of the available balance could be sold back,with a maximum accrual of 320 hours. • The Village is pemutted to use all annual Chapter 175 reserve of $545,142 to reduce the Required Employer contributions for the fiscal years ending September 30, 2016 through September 30, 2018,as determined by the Village. • The interest rate credited to DROP accounts continues to be the same as the net Pension Plan rate of return; however,the rate credited cannot be less than 0%nor greater than 7.5%. The Actuarial Impact Statement dated June 28, 2015 measured the financial effect of this Ordinance. Funding Policy. The contribution requirements of plan members and the Village aze established and may be amended by the Village Council. As explained above, plan members, with the exception of DROP participants, are required to contribute a percentage of their annual covered salary,the Village is permitted to use Chapter 175 revenue and the Village is required to contribute at an actuarially determined rate. The emptoyer contribution rate for the measurement vear ending September 30, 2015 is 19.66% for police officers and 3138% for firefighters. The amount of insurance premium taxes collected and remitted to the Plan totaled $152,443 for fiscal year ended September 30,2016. 76 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 The Firefighters' Pension Trust Fund (pazt 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 tbe fiscal year ended September 30,2017. FIREFIGHTERS'PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2017 Assets Cash and cash equivalents $ 186,715 Investments Equities 6,587,464 Fixed income 2,354,909 Real Estate Funds 904,606 Total investments 9,846,979 Prepaid items 15,442 Contributions receivable 11,114 Accrued interest receivable 6,983 Total Assets 10,067,233 LiabiliHes Accounts payable 12,133 Total Liabilities 12,133 Net Position Restricted for Pension Benefits $ 10,055,100 77 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 FIREFIGHTERS' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Additions Contributions: Employer(including State) $ 358,577 Employee 79,564 Total Contributions 438,141 Investment earnings Net(decrease)in fair of investments (25,589) Gain on sale of investments 657,131 Interest eamings 377,947 Total investment earnings 1,009,489 Less investment expenses (35,237) Net investment earnings 974,252 Miscellaneous 131 Total Additions 1,412,524 DeducNons Benefits paid 163,805 Refund of contributions 1,851 Administrative expenses 18,789 Total Deductions 184,445 Change in Net Position 1,228,079 Net Position Restricted for Pension Bene�ts Beginning 8,827,021 Ending $ 10,055,100 78 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 The Police Officers'Pension Trust Fund(part of the PSEPP) does not issue separate stand-alone financial statements. Included below are the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30,2017. POLICE OFFICERS'PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2017 Assets Cash and cash equivalents $ 73,537 Investments Equities 2,461,803 Fixed income 880,126 Real Estate Funds 338,013 Total investments 3,679,942 Prepaid items 4,100 Contributions receivable 4,224 Accrued interest receivable 2,609 Total Assets 3,764,412 Liabilities Accounts payable 9,457 Total Liabilities 9,457 Net Position Restricted for Pension Benefits $ 3,754,955 79 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 POLICE OFFICERS'PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 AddiNons Contributions: Employer $ 40,829 Employee 16,998 Total Contributions 57,827 Investment eamings Net(decrease)in fair value of investments (11,767) Gain on sale of investments 250,801 Interest eamings 144,068 Total investment eamings 383,102 Less investment expenses (25,756) Net investrnent earnings 357,346 Miscellaneous 131 Total AddiNons 415,304 DeducNons Benefits paid 27,708 Administrative expenses 18,788 Total Deductions 46,496 Change in Net Position 368,808 Net PosiNon Restricted for Pension Benefits Beginning 3,386,147 Ending $ 3,754,955 80 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 General Eneployees'Pension Plan S. Ordinances The Plan was established under the Code of Ordinances for the Village of Tequesta, Florida, Chapter 2,Article III,Division 1, Section 2-61 (a),and was most recently amended under Ordinance No. 11-11 passed and adopted on June 9, 2011. The Ptan is also govemed by certain provisions of Part VII,Chapter 112,Florida Statutes and the Internal Revenue Code. T. EffecNve Date December 11,2003 U.Plan Year October 1 through September 30 V.Type of Plan Qua(ified,governmental defined benefit retirement plan; for GASB purposes it is a single employer plan. W.Eligibility Requirements All full-time general employees who are not classified as police officers or firefighters are eligible for membership on the date of employment. X.Credited Service Service is measured as the total number of yeazs and completed months of a year as a general employee with the Village. No service is credited for any periods of employment for which the member received a refund of their contributions. Y.Compensation Base compensation including regular earnings, vacation pay, sick pay,plus all tax-deferred items of income,but excluding any lump sum payments,overtime,bonuses and longevity bonus. Z. Average Final Compensation(AFC) � The average of Compensation over the highest 5 years during the last 10 years of Credited Service; does not include lump sum payments of unused leave. 81 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 AA. Normal Retirement Eligibiliry-A member may rerire on the first day of the month coincident with or next following the earlier of: (1)age 62,or (2)30 years of Credited Service regardless of age. Benefit - 2.0% of AFC multiplied by Credited Service with a maximum benefit equal to 100% of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None BB. Early Retirement E[igibility - A member may elect to retire earlier than the Normal Retirement Eligibility upon attainment of age 50 and 6 years of Credited Service. Benefit - The Normal Retirement Benefit is reduced by 5.0% for each year by which the Early Retirement date precedes the Normal Retirement date. Normal Form ofBenefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None CC. Delayed ReNrement Same as Normal Retirement taking into account compensation earned and service credited until the date of actual retirement. DD. Service Connected Disability Eligibiliry-Any member who becomes totally and permanently disabled and unable to render useful and efficient service to the Village as a result from an act occurring in the performance of service for the Village is immediately eligible for a disability benefit. Benefit -The accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 42%of AFC. Normal Form of Benefit- 10 Years Certain and Life thereafter. COLA: None 82 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 EE. Non-Service Connected Disability Eligibility-Any member who has 6 years of Credited Service and becomes totally and permanently disabled and unable to render useful and efficient service to the Village is immediately eligible for a disability benefit. Benefit -The accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of disability with a minimum benefit equal to 25%of AFC. Normal Form ofBenefit- 10 Years Certain and Life thereafter. COLA: None FF. Death in t6e Line of Duty Eligibility - Members are eligible for survivor benefits after the completion of 6 or more years of Credited Service. Benefit-The beneficiary will receive the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. The benefit is payable at the member's Normal Retirement date. Normal Form of Benefit- 10 Years Certain COLA: None The beneficiary of a plan member with less than 6 years of Credited Service at the time of death will receive a refund of the member's accumulated contributions with interest. GG.Other Pre-Retirement Death Eligibility - Members aze eligible for survivor benefits after the completion of 6 or more years of Credited Service. Benefit-The beneficiary will receive the member's accrued Normal Retirement Benefit taking into account compensation earned and service credited as of the date of death. The benefit is payable at the member's Normal Retirement date. Normal Form of Benefit- 10 Years Certain COLA: None The beneficiary of a plan member with less than 6 years of Credited Service at the time of death will receive a refund of the member's accumulated contributions with interest. HH. Post ReNrement Deat6 Benefit determined by the form of benefit elected upon retirement. 83 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 II. Optional Forms In lieu of electing the Normal Form of benefit,the optional forms of benefits available to all retirees are the Life Annuity option or the 50%,66 2/3%,75%and 100%Joint and Survivor options. JJ. Vested Terminallon Eligibility -A member has earned a non-forfeitable right to Plan benefits after the completion of 6 years of Credited Service. Benefit - The benefit is the member's accrued Normal Retirement Benefit as of the date of termination. Benefit begins on the member's Normal Retirement date. Altematively, members can elect a reduced Early Retirement benefit any time after age 50. Normal Form of Benefit- 10 Years Certain and Life thereafter; other options are also available. COLA: None Members terminating employment with less than 6 years of Credited Service will receive a refund of their own accumulated contributions with interest. KK. Refunds Eligibility - All members terminating employment with less than 6 years of Credited Service are eligible. Optionally, vested members (those with 6 or more years of Credited Service) may elect a refund in lieu of the vested benefits otherwise due. Benefit- Refund of the member's contributions with interest. Interest is currently credited at a rate of 3%. LL. Member Contributions 5%of Compensation MM. Employer Contributions Any additional amount determined by the actuary needed to fund the plan properly according to State laws. NN. Cost of Living Increases Not Applicable 00.13t6 Check Not Applicable 84 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 PP. Deferred Retirement Option Plan Not Applicable QQ.Other Ancillary Benefits There aze no ancillary retirement type benefits not required by statutes but which might be deemed a Village of Tequesta General Employees' Pension Trust Fund liabi(ity if continued beyond the availability of funding by the current funding source. RR. Changes from Previous Valuallon There have been no changes since the last valuation. The General Employees' Pension Trust Fund does not issue separate stand-alone financial statements. Included below are the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position as of and for the fiscal year ended September 30,2017. GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2017 Assets Cash and cash equivalents $ 156,871 Investments Equities 3,238,493 Fixed income 1,147,264 Real Estate Funds 374,670 Total investments 4,760,427 Prepaid items 6,674 Contributions receivable 17,456 Accrued interest receivable 6,685 Total Assets 4,948,113 Liabilities Accounts payable 12,965 Total Liabilities 12,965 Net Position Restricted for Pension Benefits $ 4,935,148 85 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 GENERAL EMPLOYEES' PENSION TRUST FUND STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Additions Contributions: Employer $ 305,931 Employee ____ 143,361 Total ContribuNons 449,292 Investment eamings Net increase in fair value of investments 291,746 Gain on sale of investments 194,277 Interest earnings 109,073 Total investment eamings 595,096 Less investment expenses (32,267) Net investment earnings 562,829 Total Additions 1,012,121 Deductions Benefits paid 41,859 Refunds of contributions 13,511 Administrative expenses 37,296 Total DeducNons 92,666 C6ange in Net Position 919,455 Net PosiNon Restricted for Pension Benefits Beginning ' 4,015,693 Ending $ 4,935,148 86 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 The following summarizes the pension related amounts for the pension plans as of the indicated measurement date: Measurement Net Pension Net Pension Deferred Deferred Pension Date Asset Liability Outflow of Inflow of E�cpense Resources Resources General Employees' 9/30/16 $ $ 26,477 $ $551,703 $ 185,842 $ 309,445 Pension Trust Fund Firefighters Pension 9/30/16 1,770,594 1,025,889 363,638 563,520 Trust Fund Police Pension Trust 9/30/16 689,464 229,997 523,505 29,936 Fund FRS 6/30/17 561,097 254,082 187,925 93,454 HIS 6/30/17 129,440 19,662 86,628 9,845 Total $ 689,464 $ 2,487,608 $ $2,081,333 $ 1,347,538 $ 1,006,200 Vil[age oj Tequesta Defined Contribution Plan The Village Single-Employer Defined Contribution Plan (the Plan) was established on February 1, 2013 with and effective date of March l, 2013. The Plan is a 401(a) money purchase plan in the form of the Empower Retirement Governmental Money Purchase Plan and Trust (The Plan) with assets of the Plan held in trust for the exclusive benefit of the Plan participants and their beneficiaries.The assets shall be invested in the Plan and shall not be diverted to any other purpose. The employer's beneficial ownership of Plan assets held in the Empower Retirement Trust shall be held for the further exclusive benefit of the Plan participants. The Village Manager is the coordinator for the Plan and is authorized to execute all necessary agreements with the Empower Retirement Trust incidental to the administration of the Plan. The Village serves as Trustee under the Plan. In a defined contribution plan, benefits depend solely on amounts contributed to the Plan plus investment earnings. The Plan covers Police officers hired after February l, 2013. Employees must designate a mandatory participation contribution between the range of 1 to 12% for the Plan year as a condition of parricipation in the Plan. The participant shall not have the right to discontinue or vary the rate after becoming a Plan participant. Newly eligible employees have an election window of 30 days from the date of eligibility to make the election to participate in the mandatory contribution portion of the Plan which will begin the first of the month following the end of the election window. This election is irrevocable and remains in force until the employee terminates employment or ceases to be eligible to participate in the Plan. The Village 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. 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, 2017 was $312,570. Employee contributions to the Plan for fiscal year ended September 30, 2017 were $39,183; the Village's contribution was$70,530. 87 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 C. Other Posteinployment Benefit(OPEB)Obligations V'rllage of Tequesta's Other Posteniployment 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 fmancial report. 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 sazne 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. The annual OPEB cost for the Village for the current year and the related information for the fiscal year ended September 30,2017 is as follows: Required Contribution Rates Employer Pay-as-you-go Plan members N/A Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far in the future. Examples include assumptions about future employment and termination, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as such actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan provisions,as understood by the employer and participating members, and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and participating members. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short term volatility in actuarial accrued liabilities and actuarial value of assets,consistent with the long-term perspective of the calculations. 88 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Annual OPEB Cost and Net OPEB Obligation Annual OPEB Cost Annual Required Contribution(ARC) $ 81,087 Interest on Net OPEB obligation 9,106 Adjustment to ARC (10,118) Total Annual OPEB Cost $ 80,075 Net OPEB Obligation Annual OPEB Cost $ 80,075 Employer Contributions (37,725) Increase in Net OPEB Obligation 42,350 Net OPEB obligation(beginning of year) 303,541 Net OPEB Obligation(End of Year) $ 345,891 The funded status of the Plan as of October 1, 2015, the most recent actuarial valuation date is as follows: Schedule of Funding Progress Actuarial Unfunded UAAL As% Actuarial Accrued AAL Funded Covered of Covered Value of Liability (UAAL)(2)- Ratio Payroll Payroll Assets (AAL) (1) (1)/(2) (4) (3)/(4) $ - $ 599,693 $ 599,693 0% $ 5,695,712 10.50% Schedule of Employer Contributions Fiscal Year Percentage of Ended Annual Amount Annual OPEB Net OPEB 9/30 OPEB Cost Contributed Cost Contributed Obligation 2015 $ 56,000 $ 14,000 25% $ 259,000 2016 77,303 32,762 42% 303,541 2017 80,075 37,725 47% 345,891 89 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Actuarial Assumptions Fiscal year end September 30,2017 Valuation date October 1,2015 Mortality table PR2000 Combined Healthy Actuarial cost method Entry Age Normal General Price Inflation Rate 2.80% Discount Rate 3.00% Amortization method 30 years Select health coast trends 5.8%for f/y/e 2017, 5.80%for 2018 unti12024 Ultimate health cost trend 4.25% Payroll Growth Rate 3.00% H. Construction Commitments � The Village had no significant construction commitments as of September 30,2017. 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 dollaz. 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. I. Contracted Services—Refuse and Recycling Co[lection 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 1, 2007 and expiring September 30, 2013. With this agreement the Village granted Waste Management the exclusive franchise for solid waste collection of residential,conunercial, 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 deternuned 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. The Village entered into new agreement with Waste Management, Inc of Florida with the initial term for a period of eight years beginning October 1, 2017 and optional renewal for one additional five year period. J. Risk Management The Village is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. While the Village 90 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 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 (FMTT) applies a named storm deductible of 5% of the 100% value of real and personal property, personal property of others in our care, custody and control values at the time of loss or damage at the locations where the damage occurred, subject to the policy deductible, whichever is greater. The Village continues to self-insure all properties valued under $100,000. FMIT issued members in good standing a return of premium credit. The Village received a total credit of$7,487 related to policy year2015/2016. 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 yeaz, 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 2014/2015 resulted in the Village being refunded a total of$7,279 in fiscal year 2017. Additionally, $9,396 was refunded in fiscal year 2017 related to 2015/2016 policy. 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. K. Lease Ob[igations Capital Lease-Fire Equipment The Village entered into a Master Equipment Lease Purchase agreement with Community First National Bank in the amount of$132,774 with funding on January 5, 2016 for the fmancing of fire equipment. The applicable interest rate is 2.889% and interest and principal payments are due annually on January Sth.This is a four(4)year lease with five(5)payments. The following is the schedule of the of the future minimum lease payments under this capital lease arrangement at September 30,2017: Fiscal Year Ending September 30: Amount 2018 $ 28,089 2019 28,089 2020 28,089 Total minimum lease payments 84,267 Less amount representing interest (4,646) Present value of Future Minimum Lease Payments $ 79,621 91 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Capital Lease-Fire Puniper The Village entered into a capital lease with SunTrust in the amount of$432,844 with funding on October 29, 2013 for the financing of a fire pumper. The applicable interest rate is 2.423% and interest and principal payments are due annually on November l lth. This is a nine (9) year lease with ten(10)payments. The following is a schedule of the future minimum lease payments under this capital lease arrangement at September 30,2017: Fiscal Year Ending September 30: Amount 2018 $ 48,135 2019 48,135 2020 48,135 2021 48,135 2022 48,135 2023 48,132 Total minimum lease payments 288,807 Less amount representing interest (22,998) Present Value of Future Minunum Lease Payments $ 265,809 Capital Lease—Police Vehicles The Village entered into a 36-month capital lease with First Capital Leasing in the amount of $240,658 with funding on May 15, 2015 for the financing of seven (7) Ford Police Interceptors with up-fitting. The applicable interest rate is 3.007% (effective rate 3.049%) and interest and principal payments are due on the first of each month. The lease was subsequently assigned to KS StateBank. The following is a schedule of the future minimum lease payments under the capital lease arrangement at September 30,2017: Fiscal Year Ending September 30: Amount 2018 $ 55,934 Total minimum lease payments 55,934 Less amount representing interest (625) Present Value of Future Minimum Lease Payments $ 55,309 92 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 L. Long-Term Liabilities Promissory Notes The Village issues long-term debt to provide funds for the acquisition and construction of major capital facilities. Promissory notes have been signed for both governmental and business-type activities. These notes mature in 5 to 11 years and have interest rates from 3.685% to 4.96% per year. Notes outstanding at September 30,2017 are as follows: Outstanding Signed Original Interest Final September 30, Promissory Notes Payable Date Borrowing Rate Maturity 2017 Government Activities Public Improvements/P.S. Building 9/13/2002 $ 5,000,000 4.28% 9/13/2022 $ 1,674,030 Business-type Activities Water Plant Expansion 6/30/2004 $ 645,170 4.96% 4/1/2021 $ 153,895 Public Improvement(Refunding) 7/14/2008 6,554,935 3.69% 3/1/2028 4,090,666 Total Business-type Activities $ 4,244,561 Legal Debt Margin The Village is subject to a bonded debt limitation of 10% of total assessed value. The final gross taxable value at September 30, 2017 was $1,002,224,986. As of September 30, 2017 the Village did not exceed the debt limit of$100,222,499. Changes in Long-Term Liabilities Changes in the Village's long-term liabilities for the fisca( year ended September 30, 2017 are as follows: Governmental AcNvities Beginning Ending Due Within Balance Additions Deletions Balance One Yeaz Governmental Activities Note Payable-2002 $ 1,968,023 $ - $ 293,993 $ 1,674,030 $ 306,825 Capitalleases 547,423 - 146,684 400,739 122,789 Compensatedabsences 517,571 116,159 99,123 534,607 40,800 Total Governmentat Activities $ 3,033,017 $ 116,159 $ 539,800 $ 2,609,376 $ 470,414 *For governmental activities,the liability for compensated absences is liquidated by the general fund. 93 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Business-tvne AcNviNes Beginning Ending Due Within Balance Additions Delerions Balance One Year Business-type Activities Note Payable(2004) $ 188,895 $ - $ 35,000 $ 153,895 $ 37,000 Note Payable(2008) 4,403,525 - 312,859 4,090,666 324,778 Compensated absences 163,108 17,234 _ 24,909 155,433 I5,000 Total Business-type Activitles $ 4,755,528 $ 17,234 $ 372,768 $ 4,399,994 $ 376,778 The debt service requirements for the Village's notes are as follows: Governmental Activities Fiscal Year Ending Promissory Notes September 30: Principal Interest Total 2018 $ 306,825 $ 65,676 $ 372,501 2019 320,218 52,283 372,501 2020 334,196 38,306 372,502 2021 348,783 23,718 372,501 2022 364,008 8,494 372,502 Total $ 1,674,030 $ 188,477 $ 1,862,507 Business-type Activities Promissory Notes Fiscal Year Ending Business-type Activities September 30: Principal Interest Total 2018 $ 361,778 $ 153,956 $ 515,734 2019 375,203 152,121 527,324 2020 388,466 125,366 513,832 2021 397,999 109,757 507,756 2022 376,729 94,117 470,846 2023-2027 2,112,095 16,563 2,128,658 2028 232,291 1,819 234,110 Total $ 4,244,561 $ 653,699 $ 4,898,260 94 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Total Primary Government Debt Fiscal Year Ending Total Primary Government Debt September 30: Principal Interest Total 2018 $ 668,603 $ 219,632 $ 888,235 2019 695,421 204,404 899,825 2020 722,662 163,672 886,334 2021 746,782 133,475 880,257 2022 740,736 102,611 843,347 2022-2026 2,112,095 16,563 2,128,658 2027-2028 232,291 1,819 234,110 Total $ 5,918,590 $ 842,176 $ 6,760,766 M. Fund Balance Minimum Fund Balance Policy The Village Council has adopted a financial policy to maintain a minimum level of unassigned fund balance in the general fund. The target level is set at two months of general fund 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-yeaz period. At September 30, 2017 the unassigned fund balance was below the minimum target level (approximately 12.6%). N. Interfund Transfers The composition of interCund transfers for the fiscal year ended September 30,2017 is as follows: Interfund Transfers Transfers In Capital Improvement Transfers Out Fund Total General Fund(1) $ 106,000 $ 106,000 Total Interfund Transfers $ 106,000 $ 106,000 (1)Transfer is to fund road improvements. 95 VILLAGE OF TEQUESTA, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 O. Joint Ventures The Village,in conjuncrion 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. 96 . .� �� ^' � '3 .� r REQUIRED SUPPLEMENTARY INFORMATION VILLAGE OF TEQUESTA,FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Ad valorem taxes $ 6,104,400 $ 6,104,400 $ 6,098,723 $ (5,677) Othertaxes 1,180,100 1,180,100 1,512,354 332,254 Charges for services 1,136,150 1,219,654 1,272,994 53,340 Intergovernmental 874,100 874,100 836,780 (37,320) Intragovernmental 561,350 561,350 561,350 - Licenses and permits 502,000 502,000 646,126 144,126 Franchise fees 462,000 462,000 452,496 (9,504) Rents and royalties 203,000 203,000 203,965 965 Miscellaneous 17,050 17,050 40,660 23,610 Fines and fodeitures 65,000 65,000 32,743 (32,257) Grants,contributions and donations 4,750 82,250 27,682 (54,568) Investment eamings 5,000 5,000 15,605 10,605 Total Revenues 11,114,900 11,275,904 11,701,478 425,574 Expenditures Current: General govemment 1,988,650 2,143,307 2,104,039 39,268 Public safety 6,504,350 6,648,252 6,630,534 17,718 Transportarion 1,192,700 1,247,679 1,306,439 (58,760) Leisure services 613,900 640,174 629,764 10,410 Capital outlay 415,250 557,955 346,224 211,731 Debt service: Principal 443,300 443,300 440,676 2,624 Interest 91,600 91,600 92,164 (564) Fiscal Chazges 19,800 19,800 19,340 460 TotalExpenditures 11,269,550 11,792,067 11,569,180 222,887 Ezcess(Deficiency)of Revenues Over(Under)Expenditures (154,650) (516,163) 132,298 648,461 Other Financing Sources(Uses) Transfers out (106,000) (106,000) (106,000) - Pmceeds on sale of capital assets 10,000 10,000 9,336 (664) Total Other Financing Sources(Uses) (96,000) (96,000) (96,664) (664) Net C6ange in Fund Balances (250,650) (612,163) 35,634 647,797 Fund Balances-Beginning 3,987,146 3,987,146 4,310,262 323,116 Fund Balances-Ending $ 3,736,496 $ 3,374,983 $ 4,345,896 $ 970,913 See note to budgetary comparison scbedule 97 VILLAGE OF TEQUESTA, FLORIDA NOTE TO THE BUDGETARY COMPARISON SCHEDULE FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Note 1—Budgets and Budgetary AccounNng 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 yeaz, the Village presents this schedule for the general fund only. Budgets are adopted on a basis consistent with accounring principles generally accepted in the United States of America. For budgeting purposes, current year encumbrances aze 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 ori�inal 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 +Carrvovers from the previous vear(encumbrancesl =0riginal 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 $522,517 were adopted for the General Fund. Appropriations are legally controlled at the fund level and expenditures may not legally exceed budgeted appropriations at that level. 98 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS FIREFIGHTERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2017 2016 2015 2014 Total Pension Lability Service cost $ 366,393 $ 348,504 $ 334,559 $ 312,030 Interest 788,885 778,642 679,400 582,897 Changes of benefit terms - 318,787 - Difference between expected and actual experience (22,327) (401,835) 108,010 450 Changes of assumptions (136,724) 300,255 - Benefit payments,including refunds of membercontributions (163,805) (438,149) (61,913) (53,637) Refunds (1,852) - - - Other (151,438) (242,266) 118,555 30,162 Net Chnnge in Total Pension Lisbility 679,132 345,151 1,497,398 871,902 Total Pension Lisbility-Beginning 10,597,615 10,252,464 8,755,066 7,883,164 Total Pensioo LiablGty-Ending(a) $ 11,276,747 $ 10,597,615 $ 10,252,464 $ 8,755,066 Plan Fiduciary Net Position Contributions-employer $ 209,615 $ 60,162 $ 335,771 $ 351,652 Contributions-employer(from State)* 300,401 394,709 189,010 100,617 Contriburions-member 79,564 68,982 64,721 65,803 Net Investment income 974,383 609,318 77,213 567,786 Benefitpayments (163,805) (438,149) (61,913) (53,637) Refunds (1,852) - - - Administrative expense (18,789) (27,450) (27,290) (18,921) Other(LJse of State Contribution Reserve) (151,438) (242,266) - - Net Change in Plan Fiduciary Net Position 1,228,079 425,306 577,512 1,013,300 Plan Fiduciary Net Position-Beginning _ 8,827,021 8,401,715 _ _ 7,824,203 __ 6,810,903_ Plan Fiduciary Net Position-Ending(b) $ 10,055,100 $ 8,827,021 $ 8,401,715 $ 7,824,203 Net Pension Liability-Ending(a)-(b) $ 1,221,647 $ 1,770,594 $ 1,850,749 $ 930,863 Plan Fiduciary Net Position as a Percentage of 89.17% 83.29% 81.95% 89.37% Total Pension Liability Covered Employee Payroll* $ 1,446,616 $ 1,379,650 $ 1,294,416 $ 1,316,060 Net Pension Liability as a Percentage of Employee Payroll 84.45% 12834% 142.98% 70.73% *$242,266 in State Contribution Reserve was used to offset the Village's contribution requirement for fiscal year ending 2016 as per the collective bazgaining agreement. This schedule is presented as requued,however,until a full 10-year trend is compiled,the V illage is only presenting information for those years for which information is available. 99 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF VILLAGE CONTRIBUTIONS FIREFIGI3TERS' PENSION TRUST FUND Eiscal Year Actuarially Contribution Covered Actual Ended Determined Actual Deficiency Employee Contribution as a% September 30, Contribution Contribution (Excess) Payroll of Covered Payroll 2014 $ 416,665 $ 422,107 $ (5,442) $ 1,316,060 32.07% 2015 403,211 406,226 (3,015) 1,294,416 31.38% 2016 454,871 454,871 - 1,379,650 32.97% 2017 498,504 510,016 (11,512) 1,446,616 35.26% Notes to Schedule Valuation Date 10/1/2015 Actuarially deternuned contribution rates are calculated as of October 1,which is two years prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to deternuned contribution rates: Actuarial cost method Entry age nonnal Amortization method Level dollar, closed Remaining amortization period 20 years Asset valuation method 5-year smoothed market Inflation 3.00% Salary increases 6.0°/a including inflation Investment rate of retum 7.25% Retirement age 100%upon reaching normal retirement age. Probability of early retirement is 5%or each year eligible. Mortality RP-2000 Combined Healthy Participant Mortality Table for males and females with mortality improvement projected to all future yeazs using Scale AA Other information See discussion of valuation results in the October 1,2015 Actuarial Valuation report,dated August 1,2016 This schedule is presented as required,however,until a full 10-year trend is compiled, information is presented for those yeazs available. 100 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS FIREFIGHTERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2017 2016 2015 2014 Annual money-weighted rate of retum,net of investment expenses 10.58% 7.69% 0.38% 7.46% This schedule is presented as required,however,until a full 10-year trend is compiled, the Village is only presenting information for those years for which information is available. 101 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS POLICE OFFICERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2017 2016 2015 2014 Total Pension Lability Service cost $ $80,711 $ 110,495 $ 126,703 $ 161,156 Interest 200,356 201,452 213,603 169,526 Changes of benefit terms - (39,467) - Difference between expected and actual experience (329,387) (226,384) (391,613) - Changes of assumptions (30,633) 75,463 - - Benefit payments (27,708) (27,708) (30,312) (10,073) Refunds - (52,038) - (43,331) Net Change in Total Pension Liability (106,661) 81,280 (121,086) 277,278 Total Pension Liability-Beginning 2,696,683 2,615,403 2,736,489 2,459,211 Total Pension Liability-Ending(a) $ 2,590,022 $ 2,696,683 $ 2,615,403 $ 2,736,489 Plan Fiduciary Net Position Contributions-employer $ $40,829 $ 38,638 $ 80,782 $ 111,164 Contributions-non-employer contributing entity - - - 25,888 Contributions-member 16,998 17,067 20,545 Net Investment income 357,477 306,504 20,718 219,219 Benefit payments (27,708) (27,708) (30,312) (10,073) Refunds - (52,038) - (43,331) Administrative expense (18,788) (27,026) (27,967) (18,677) Net C6ange in Plan Fiduciary Net Position 368,808 255,437 63,766 284,190 Plan Fiduciary Net Position-Beginning 3,386,147 3,130,710 3,066,944 2,782,754 Plan Fiduciary Net Position-Ending(b) 3,754,955 3,386,147 3,130,710 3,066,944 Net Pension Asset-Ending(a)-(b) $ (1,164,933)$ (689,464)$ (515,307)$ (330,455) Plan Fiduciary Net Position as a Percentage of Total 144.98% 125.57% 119.70% 112.08% Pension Liability(Asset) Covered Employee Payroll $ 339,957 $ 341,342 $ 410,897 $ 517,760 Net Pension Liability(Asset)as a Percentage of Covered-Employee Payroll -342.67% -201.99% -125.41% -63.82% This schedule is presented as required, however, until a full 10-year trend is compiled, the Village is only presenting information for those years for which information is available. 102 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF VILLAGE CONTRIBUTIONS POLICE OFFICERS'PENSION TRUST FUND Fiscal Year Actuarially Contribution Covered Actual Ended Determined Actual Deficiency Employee Contribution as a% September 30, Contribution Contribution (Excess) Payroll of Covered Payroll 2014 $ 111,164 $ 111,164 $ - $ 517,760 21.47% 2015 80,782 80,782 - 410,897 19.66% 2016 37,377 38,638 (1,261) 341,342 1132% 2017 40,659 40,829 (170) 339,957 12.01% Notes to Schedule Valuation Date 10/1/2015 Actuarially determined contribution rates are calculated as of October 1,which is two years prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determined contribution rates: Actuarial cost method Entry age normal Amortization method Level dollar,closed Remaining amortization period 20 years Asset valuation method 5-year smoothed market Inflation 3.00% Salary increases 6.0% including inflation Investment rate of return 7.25% Retirement age 100%upon reaching nonnal retirement age. Probability of early retirement is 5%or each year eligible. Mortality RP-2000 Combined Healthy Participant Mortality Table for males and females with mortality improvement projected to all future years using Scale AA Other Information: See discussion of valuation results in the October 1,2015 Actuarial Valuarion report,dated August 1,2016 This schedule is presented as required, however,until a full 10-yeaz trend is compiled, information is presented for those years available. 103 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS POLICE OFFICERS' PENSION TRUST FUND Fiscal Year Ended September 30, 2017 2016 2015 2014 Annual money-weighted rate of return,net of investment expenses 10.58% 7.69% 0.38% 7.46% This schedule is presented as required, however, until a full 10-year trend is compiled, the Village is only presenting information for those years for which information is available. 104 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN THE VILLAGE'S NET PENSION LIABILITY AND RELATED RATIOS GENERAL EMPLOYEE'S PENSION TRUST FUND Fiscal Year Ended September 30, 2017 2016 2015 2014 Total Pension Lability Service cost $ $380,051 $ 359,231 $ 300,325 $ 278,029 Interest 329,590 285,954 253,701 216,124 Benefit changes - - - - Difference between actual&expected experience (112,103) (40,094) (157,539) - Assumption changes 362,784 - - - Benefit payments (41,859) (16,657) (11,918) (8,534) Refunds (13,511) (16,161) (5,959) (4,454) Net Change in Total Pension Liability 904,952 572,273 378,610 481,165 Total Pension Lisbility-Beginning 4,042,171 3,469,898 3,091,288 2,610,123 Total Pension Liability-Ending(a) $ 4,947,123 $ 4,042,171 $ 3,469,898 $ 3,091,288 Plan Fiduciary Net Position Contributions-employer and state $ $305,931 $ 201,704 $ 194,376 $ 184,627 Contributions-non-employer contributing entity - - - Contributio�s-member 143,361 134,829 115,288 100,560 Net investment income 562,828 191,848 (36,136) 308,314 Benefitpayments (41,859) (16,657) (11,918) (8,534) Refunds (13,511) (16,161) (5,959) (4,454) Administrative expense ____(37,296) (44,359) (38,098) (25,678) Net C6ange in Plan Fiduciary Net Position 919,454 451,204 217,553 554,835 Plan Fiduciary Net Position-Beginning 4,015,694 3,564,490 3,346,937 2,792,102 Plan Fiduciary Net Position-Ending(b) $ 4,935,148 $ 4,015,694 $ 3,564,490 $ 3,346,937 Net Pension Asset-Ending(a)-(b) $ 11,975 $ 26,477 $ (94,592)$ (255,649) Plan Fiduciary Net Position as a Percentage 99.76% 9934% 102.73% 108.27% of Total Pension Liability Covered Employee Payroll $ 2,867,220 $ 2,696,572 $ 2,305,760 $ 2,011,191 Net Pension Liability as s Percentage of covered Employee Payroll 0.42% 0.98% -4.10% -12.71% This schedule is presented as required, however, until a full 10-year trend is compiled, the Village is only presenting information for those years for which information is available. 105 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF VILLAGE CONTRIBUTIONS GENERAL EMPLOYEES' PENSION TRUST FUND Fiscal Year Actuarially Contribution Covered Actual Ended Determined Actual Deficiency Employee Contribution as a% September 30, Contribution Contribution (Excess) Payroll od Covered Payroll 2014 $ 184,627 $ 184,627 $ - $ 2,011,191 9.18% 2015 194,376 194,376 - 2,305,760 8.43% 2016 201,704 201,704 - 2,696,572 7.48% 2017 235,972 305,931 (69,959) 2,867,220 10.67% Notes to Schedule Valuation Date 10/1/2015 Actuarially determined contribution rates are calculated as of October 1,which is two yeazs prior to the end of the fiscal year in which contributions are reported. Methods and assumptions used to determined contribution rates: Actuarial cost method Aggregate method Amortization method N/A Remaining amortization period N/A Asset valuation method 5-year smoothed mazket Inflation 3.00% Salary increases 6.0%including inflation Investment rate of return 7.50% Rate of retirement 100%when first eligible for normal retirement; 5%for each year eligible for early retirement. Mortality RP-2000 Combined Healthy Participant Mortality Table for males and females with mortality improvement projected to all future years using Scale AA Other information See discussion of valuation results from the October 1,2015 Actuarial Valuation report. This schedule is presented as required,however,until a full 10-year trend is compiled,the Village is only presenting informarion for those years for which information is available. 106 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS GENERAL EMPLOYEES' PENSION TRUST FUND Fiscal Year Ended September 30, 2017 2016 2015 2014 Annual money-weighted rate of return,net of investment expenses 12.52% 3.97°/a -2.11% 9.73% This schedule is presented as required,however,until a full 10-year trend is compiled, information is presented for those years available,the Village is only representing information for those years for wich informarion is available. 107 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS OTHER POST-EMPLOYMENT BENEFITS Unfunded Actuarial (a) Accrued Actuarial Actuarial Unfunded Liability as a% Actuarial Value of Accrued Actuarial Funded Covered Covered Valuation Date Assets Liability(AAL) Liability Ratio Payroll Payroll October l,2009 $ - $ 484,000 $ 484,000 0% $ 4,111,000 11.8% October I,2014 - 380,000 380,000 0% 5,218,000 7.3% October 1,2015 - 599,693 599,693 0% 5,695,712 10.5% Note: See Note 3.G Other Post-Employment Benefit(OPEB) Obligations 108 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM(FRS) SCHEDULE OF PROPORTIONATE CHANGES IN THE NET PENSION LIABILITY 2017 2016 2015 2014 2013 Proportion of the net pension liability(asset) 0.00189% 0.00227% 0.00223% 0.00291% 0.00397% Proportionate share of the net pension liabiliry(asset) $ 561,097 $ 572,594 $ 287,876 $ 177,517 $ 683,841 Covered-employee payroll 391,643 451,085 484,772 569,299 651,093 Proportionate shaze of the net pension liability(asset) as a percentage of its covered-employee payroll 143.27% 126.94% 5938% 31.18% 105.03% Plan fiduciary net position as a percentage of the total pension liability 83.89% 84.88% 92.00% 96.09% 88.54% *The amounts presented for each fiscal year were determined as of 6/30. (1)This schedule is presented as required,however,until a full 10-year trend is compiled, information is presented for only those years for which information is available. (2)Refer to GASB No.68,§81b-the information in this schedule deternuned as of the Village's most recent fiscal year. 109 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY PROGRAM(HIS) SCIiEDULE OF PROPORTIONATE CHANGES IN THE NET PENSION LIABILITY 2017 2016 2015 2014 2013 Proportion of the net pension liability(asset) 0.00121% 0.00160% 0.00168% 0.00214% 0.00247% Proportionate shaze of the net pension liability(asset) $ 129,440 $ 186,087 $ 171,031 $ 200,044 $ 214,766 Covered-employee payroll 391,643 451,085 484,772 569,299 651,093 Proportionate shace of the net pension liability(asset) as a percentage of its covered-employee payroll 33.05% 41.25% 3528% 35.14% 32.99% Plan fiduciary net position as a percentage of the total pension liability 1.64% 0.97% 0.50% 0.99% 178.00% *The amounts presented for each fiscal year were deternuned as of 6/30. (1)This schedule is presented as required,however,until a full 10-year trend is compiled, information is presented for only those years for which information is available. (2)Refer to GASB No.68,§ 81b-the information in this schedule determined as of the Village's most recent fiscal year. 110 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM(FRS) SCHEDULE OF VILLAGE CONTRIBUTIONS 2017 2016 2015 2014 2013 -- --- - Contractually required contribution $ 47,988 $ 62,966 $ 43,642 $ 58,404 $ 72,698 Contributions in relation to the contractually required contribution (47,988) (62,966) (43,642) (58,404) (72,698) Contribution deficiency(excess) $ - $ - $ - $ - $ - Covered-employee payroll $ 382,869 $ 451,085 $ 484,772 $ 569,299 $ 651,093 Contributions as a percentage of covered- employee payroll 12.53% 13.96% 9.00% 10.26% 11.17% (1)This schedule is presented as required,however,until a full 10-year trend is compiled, information is presented for only those years for which information is available. (2)Refer to GASB No. 68, 81b- the information in this schedule deternuned as of the Village's most recent fiscal year. 111 VILLAGE OF TEQUESTA REQUIRED SUPPLEMENTARY INFORMATION HEALTI3 INSURANCE SUBSIDY PROGRAM(HIS) SCHEDULE OF VILLAGE CONTRIBUTION5 2017 2016 2015 2014 2013 Contractually required contribution $ 6,356 $ 7,488 $ 5,381 $ 6,832 $ 8,204 Contributions in relation to the contractually required contribution (6,356) (7,488) (5,381) (6,832) (8,204) Contribution deficiency(excess) $ -$ - $ - $ - $ - Covered-employee payroll $ 382,869$ 451,085 $ 484,772 $ 569,299 $ 651,093 Contributions as a percentage of covered- employee payroll 1.66% 1.66% 1.11% 1.20% 1.26% (1)This schedule is presented as required,however,until a full 10-year trend is compiled,information is presented for only those years for which information is available. (2)Refer to GASB No. 68, 81b- the information in this schedule deternuned as of the Village's most recent fiscal year. 112 r,� � � '3 rZ .�r� COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES : =.. � �} NONMAJOR GOVERNMENTAL FUNDS NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenue sources that are restricted, committed,o�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. VILLAGE OF TEQUESTA,FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30,2017 Special __ Revenue _ _____Capital Projects Total Special Law Capital Capital Nonmajor Enforcement Improvement Projects Governmental Fund Fund Fund Funds Assets Cash $ 335,858 $ 103,836 $ 4,313 $ 444,007 Total Assets $ 335,858 $ 103,836 $ 4,313 $ 444,007 Liabilities and Fund Balances Lisbilities Accounts payable - 48,000 - 48,000 Total Liabilities - 48,000 - 48,000 Fund Balances Restricted for: Law Enforcement 335,858 - - 335,858 Assigned to: Capital Projects __ -_ _ 55,836 __ 4,313 _ 60,149 Total Fund Balances 335,858 55,836 4,313 396,007 Total Liabilities and Fund Balances $ 335,858 $ 103,836 $ 4,313 $ 444,007 113 VILLAGE OF TEQUESTA,FLORIDA COMBINING STATEMENT OF REVENUES,EXPEND[TURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Special Revenue Capital Projects Total Special Law Capital Capital Nonmajor Enforcement Improvement Projects Governmental Fund Fund Fund Funds Revenues $ - $ - $ - $ - Expenditures Current: Public safety 2,173 - - 2,173 Transportarion - 156,083 - 156,083 Capital outlay 10,000 - - 10,000 Total Expenditures 12,173 156,083 - 168,256 Eacess(Deficiency)of Revenues OverEapenditures (12,173) (156,083) - (168,256) Other Financing Sources(Uses) Transfers in - 106,000 - 106,000 Net Chaage in Fund Balances (12,173) (50,083) - (62,256) Fund Balances-Beginning of Year 348,031 105,919 4,313 458,263 Fund Balances-End of Year $ 335,858 $ 55,836 $ 4,313 $ 396,007 114 VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SCI�DULE SPECIAL LAW ENFORCEMENT TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues $ - $ - $ - $ - Expenditures Public safety $ - $ 2,326 $ 2,173 $ 153 Capital outlay - 181,400 10,000 171,400 TotalExpenditures - 183,726 12,173 171,553 Net Change in Fund Balance - (183,726) (12,173) 171,553 Fund Balance-Beginning 348,031 348,031 348,031 - Fund Balance-Ending $ 348,031 $ 164,305 $ 335,858 $ 17 t,553 115 VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SC�DULE CAPITAL IMPROVEMENT FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Variance with Final Budget Budgeted Amounts Actual Positive Original__ Final Amounts (Negarive)_ Revenues $ - S - $ - $ - Expenditures Transportation $ 106,000 $ 156,147 $ 156,083 $ 64 Total Ezpenditures 106,000 156,147 156,083 64 Ezcess(Deficiency)of Revenues OverEzpenditures (106,000) (156,147) (156,083) 64 Other Financing Sources Transfers in 106,000 106,000 106,000 - Net Change in Fund Balance - (50,147) (50,083) 64 Fund Balance-Beginning 105,919 105,919 105,919 - Fund Balance-Ending $ 105,919 $ 55,772 $ 55,836 $ 64 116 VILLAGE OF TEQUESTA,FLORIDA BUDGETARY COMPARISON SCI�DULE CAPITAL PROdECTS FUND FOR THE FLSCAL YEAR ENDED SEPTEMBER 30,2017 Variance with Final Budget Budgeted Amounts Actual Posirive Original Final Amounts (Negative) Revenues Fines and forfeitures $ - $ - $ - $ - Total Revenues - - - - Eapenditures Public safety - - - - Total Ezpenditures - - - - Net Chsnge in Fund Balance - - - - Fund Balance-Beginning 4,314 4,314 4,313 (1) Fund Balance-Ending $ 4,314 $ 4,314 $ 4,313 $ (1) 117 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 aze used to report resources required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post-employment benefit plans, or other employee benefit plans. The Village accounts for two defined benefit plans (Public Safety reports separate trust funds for Police Officers and Firefighters) and a separate fund is reported for each individual trust fund. The three trust funds are as follows: Firefighters' Pension Trust Fund — This fund accounts for the accumulation of resources and for contributions and benefits of the firefighter employees. Police Officers' Pension Trust Fund — T'his fund accounts for the accumulation of resources and for contributions and benefits of the police employees hired prior to February l, 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. VILLAGE OF TEQUESTA,FLORIDA COMBI1vING STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30,2017 Police General Firefighters' Officers' Employees' Pension Pension Pension Trust Fund Trust Fund Trust Fund Total Assets Cash and cash equivalents $ 186,715 $ 73,537 $ 156,871 $ 417,123 Investments Equiries 6,587,464 2,461,803 3,238,493 12,287,760 Fixed Income 2,354,909 880,126 1,147,264 4,382,299 Real Estate Fund 904,606 338,013 374,670 1,617,289 Total investments 9,846,979 3,679,942 4,760,427 18,287,348 Prepaid items 15,442 4,100 6,674 26,216 Contributions receivable 11,114 4,224 17,456 32,794 Accrued interest 6,983 2,609 6,685 16,277 Total Assets 10,067,233 3,764,412 4,948,113 18,779,758 Liabilities Accounts payable 12,133 9,457 12,965 34,555 Total Liabilities 12,133 9,457 12,965 34,555 Net PosiNon Restricted for Pension Benefits $ 10,055,100 $ 3,754,955 $ 4,935,148 $ 18,745,203 118 VILLAGE OF TEQUESTA,FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2017 Police General Firefighters' Officers' Employees' Pension Pension Pension Trust Fund Trust Fund Trust Fund Total Additions Contributions: Employer(including State) $ 358,577 $ 40,829 $ 305,931 $ 705,337 Employee 79,564 16,998 143,361 239,923 Total Contributions 438,141 57,827 449,292 945,260 Investment Earnings Net increase(decrease)in fair value of investments (25,589) (11,767) 291,746 254,390 Gain on sale of investments 657,131 250,801 194,277 1,102,209 Interest earnings 377,947 144,068 109,073 631,088 Total investment earnings 1,009,489 383,102 595,096 1,987,687 Less investment expenses (35,237) (25,756) (32,267) (93,260) Net Investment earnings 974,252 357,346 562,829 1,894,427 Miscellaneous 131 131 - 262 Total Additions 1,412,524 415,304 1,012,121 2,839,949 Deductions Benefits paid 163,805 27,705 41,859 233,372 Refund of contributions 1,851 - 13,511 15,362 Administrative expenses 18,789 18,788 37,296 74,873 Total DeducNons 1,596,969 461,800 1,104,787 3,163,556 Change in Net Position 1,228,079 368,808 919,455 2,516,342 Net Position Restricted for Pension Benefits Beginning 8,827,021 3,386,147 4,015,693 16,228,861 Ending $ 10,055,100 $ 3,754,955 $ 4,935,148 $ 18,745,203 119 . r.� ^' � '3 f STATISTICAL SECTION STATISTICAL SECTION This part of the Village of Tequesta's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the informarion in the fmancial statements, note disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. 120-124 Revenue Capacitv These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. 125-128 Debt Canacity 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. 129-133 Demo�raphic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place. 134-135 Operatin�Information These schedules contain service and infrastructure data to help the reader understand how the information in the Village's financial report relates to the services the Village provides and the activities it performs. 136-138 Sources: Unless other wise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. VILLAGE OF TEQUESTA,FLORIDA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS ------------ ------- -- ------ - -(ACCRUAL BASIS OF ACCOUNTINGL----.---.-----.- __ Z008 __ 2009 2010 2011 2012 2013 2014 2013 2016 201� GovvnmenfalActivkks —'_—'_._—__ "'_'_ _' _ —_'— Net'vrvcsmve m ppiul weu S 6,939,332 S 7,330,897 S 7,525�70 f 10,770,256 f 10,591,178 S 10,261,476 f 10.284,849 f 10,058,936 f 9.948,379 f 10.023,291 Ratricted - - - - 579,809 579,320 990,739 1,572,6I4 1,343y13 1,776,769 Umestrcmd 6,459,522 6,218.462 5,306,661 I,142,410 3,510,237 3,011,737 2,739,726 1,638,243 1,612,070 1,157,654 TWaI Gmer�oe�ul ActivlUa NN PaYtlo� S 13,418,854 f 13,549.359 f 12,832,231 f 15,172.666 f 14,661,824 S 13.852,333 f 13,%5,3I4 f I3,269,813 f 12,903.992 S 12,937,714 _-_____ _ _ _ _ ___ __ _ _ _ __ _ ____ __ . . _.... _ .______ Babes+-lype ActivfNet: Netiov�mapiWweb S 14,0H2,989 f 13,713,325 S 13,037,012 f U,673,046 S 14,�18,&LI S 14,161,067 f 13,402,4I2 f I2.681.300 S 12,321,433 S 13,078,584 RatricOed ' ' ' ' ' • ' ' ' ' U�ontricrcd 7,581,512 3,997,271 4,975,316 4,315,056 4,884,793 5,108,598 3,632,617 3,781,969 6,117,202 5,883,331 Tohl 8miaewype Aclivitks NH Paitieo S 17,664,501 S 17,710,796 f I8,012,330 f 18.988,102 f 19,603,634 S 19,575.663 f 19,035,029 f 18,�63,473 f 18,438,635 f 18,96I,915 Prlmry govemm�r Ndinvesumitinc�piWaueb S 21,042}21 S 21,041,4Y! S 20,562,562 f 25,403,302 S 23,3I0,619 f 24,428,543 f 23.68'i,261 f 22,740,460 S 22,269,832 f 23,101,875 Ratricoed - - - - 579,809 579,320 940,739 1,572,614 1,343,.543 1,776,769 Uuartic0ed 10.041,034 10,213,737 10,281,979 8,757,466 8,395.030 8,420,335 8,372,343 7,420,212 7,729,272 7,000,985 TonlCwemmeotdAetHiNesNetPwllion f 31,083,335 S 31,260,155 f 3QB�4,561 S 34,160,768 f 34,265,438 S 33,428,198 S _33000,343 f 3_�_773,286 f J1,312.647 S 31,919,629 Nde:7Le Vi16ge mpk�od GASB Sutemm�No.63 dumg Me fvcal ypr aded Sepeober 30,2013 aod�1'vnd the rcw mmimobgy 6or dl yean peecnted. �20 VILLAGE OF TEQUESTA,FLORIDA CHANCES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) 2008 2(q9 2010 ]011 2012 2017 2014 2015 2016 201I 6apedbre� —_---_ _— _ — — __—._._ — —__ __ _ GowomeoW�ctivitiu: Gmmdgovenuoem f 1.J14.038 f 1�01.344 S 1,503.750 f 1.391,575 S 1,629.113 f 1.6/2,918 f 1.770,326 S 1,714.571 f 1.918.84J f 2.201.162 Publicnfery 5.784,7d3 5.807.477 6,3U.8I5 5.989J57 6,310J65 6,207.866 6,222.i08 5,812,11/ 7,270.771 7,001.196 Tm�pwuuon 7)6,844 771.966 8q.%0 BS7.436 898.438 1.019.062 1.009.697 1,161.61) 1,381,760 1,650.Ifi2 lanae�avice 539,430 6)9390 71Q661 675,671 635,110 610,513 587,H5 566,585 663,524 690,066 Imnetoobo�-eemde6t 206,126 180.770 169.792 158.685 146.868 135,21M 110,I98 124,731 IIl.l09 III�PI TmlGwemm�ulAalrNksf�peWitare� 8.610.703 ___ 8901.107 ______9,542,022 9 2,7M ___9.319.916 ___ 9.675.59I 9.700170 ____9.J79,214 _ 11,352,367 11.657.092 Bwiiou�-type Ktivitim: Ws� 7.760.426 3.907.950 I.989,517 7.829a70 0.017.097 1,2M.955 1.78],022 4.911.BI6 0.726.849 5.038,7C0 Seamwav 215.IQ7 226.498 223.l21 19/,771 201,526 221,283 219.051 262,<13 /90.105 338.758 Re6re�od rteycliog 420.061 M�.M9 171.156 44t,J02 466.637 �81.165 �89.9T1 099.670 489.874 179,278 _ - _ _ _.. ____ ... TwlBd�e�rrypeActlHllnEapem 4,795.670 1.578.897 4.6H.09� 4.�67.%3 1.693.260 1.910.403 5.531.050 5,67).899 5.707,128 5,656,T16 7�nIPrlrryGwe'reM�n`nuE:penn f 13,006J73 f 17,/83,0/4 S 1�,186,116 f 13,700,7f17 S 11213,176 S I1,365.9% S 15.251,720 S 15,053,113 f 17,059,695 S 17,SII,868 ►e�Rnm Rere�es Govaoomml ativiuo: Clr�yra fa�avices: ��/o�� f 075,7M S 102,182 f 316,BI6 S 568./52 f 742,4)8 f 695,801 S 69�,220 S 786,792 f 814,596 S 865389 PubUcribry 867,39I 787,774 899.639 1,18J.T28 1.270,3UB I.I12.593 1.755.652 1.563.375 1.7N.116 1.775.ffi4 T� 12 ' ' ' ' I.qgp ' _ ' ' Isiw�c�mvica 50,219 72,tH7 92,003 77955 71,939 86,349 769�8 67,T77 69,570 87,7l9 OpeNiog pann�od�mtribimau 18.711 67.842 21,350 58.716 G0,260 95.145 63.UB 18,100 9,505 10,235 Capibl paon ud cantriwmoir _ _57.7J6 _ _ - 100.000 2.689.626 119,200 - . - 73.828 23.657 Taal Gevmme�td AcNrltln hq{nm Rcve�ua I./63JI7 1.226,265 1.432.812 4.678.507 2,]64,145 2.024.366 _ 2,589.9J8 2.i66,214 2.)01.615 2.759.05/ ��YR��+ mop far eawca: N�ra I.463,564 3,86J,439 0,076,132 C,385267 4,036,958 �,OI8.755 1,153,865 1,432,0711 1,826,495 5,487J05 Senmwua 299.729 )14.569 1U.126 314,264 727.197 327.513 123,363 319.993 325.OD5 .1�0.118 RefusWiecycGng �02,139 Ii�,112 111,657 C36,162 167,792 �82,422 080,795 176,616 /90,801 493,753 Co�miry derelapmm� - ' ' ' ' ' ' ' ' ' Opa�up p�nb�od 000nihnrioo� - - 51.511 - - - . . _ . Cyiu��ob�od mnu�'hnriao� Tsnl Bwi�ew�rype Activitle Pro{nm Revnua 4.I65,A3 __4,192.320 /,833,426 _ 5,375,693 5,247,543 __ <,82�,690 4,960,027 5,220,639 5,642,I01 _ 6,121,176 Tanl hisry Covenoe�l�nRr�m Reveeuea S S.Q71,0�5 S 5,818,605 S 6,288,238 S 10,011,200 S 7,311,688 f 6,819,058 S 7,549,961 S 7,686,883 f 8,343,916 f 9,080,7J0 Net(E:peae)Revere Gwvomr.vulKlivitia S (7.I�SJ90) f p.677.962) f 18.109,310) 1 (1,33�,23'n f (7,255.Aq f (7.631,225) f p.110}32) S (6.913,970) f (8.650.952) f (8.898.038) �activiou _____(229938) __U.127 _.__ _.711.772 ___ 867.730 ____554.Z87 .._ __(83.7I3) _ (591.027) ___.SI53.260) ____(b�.82'n __ JN,IOD TwlPrirryGwer�we�tNnEapere f (7,773,3281 S (7.66{.1]9) S (7.897.878) f (3.686.50'� f__i6.70�.188) S (7,7J6.9381 f _ 7.( 70�,759) f_____�,7f6,270) f (8.715.779) S _(8./]3,6;8) Nde:The VAlye i�l�md GASB SUDement No.63 8ving 16e firal ynr aded SryunBc 30.3013 md Witittd 16e new laminology for dl y�s�s p`oemed. I21 VILLAGE OF TEQUESTA,FLORIDA CHANGES IN NET POSITION(CONTINUED) LAST TEN EISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Geoerd Reve�sa 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Govemmrntal xtivities: ---- ---- Taxes: Propenytaxes E 5,661,200 S 5,173,808 E 4.643.816 S 4.34�,668 S 4,268,732 S 4,339,215 S 4.767.948 S 5,275,411 S 5,683,707 S 6,098,723 Othctaxes 1.123.272 1.285.063 1.315.006 1.266.681 1.235.941 1,266,929 Ir16.100 1.304.312 Ir71.27R 1.512.354 Flanchise fea based an grosx receipts 462,296 466,541 435,766 412,441 393,734 380J 60 401,859 462,3I2 449,126 452A96 Uorcstricted intergovemmental 783,034 702,616 717,673 724,400 7I8,277 735,924 �70,616 81 1,044 822,390 830,570 Unrestricted investmrnt camings 152.602 8.725 71.067 32,775 49.173 22.316 13.184 7.139 8.465 15.605 Misccllaneous revenues 37,621 171,614 208,754 I 16,707 99,072 77390 53,406 17,739 27,041 32,676 Gain on sale ofcapital usets - - - - _ - - I3,p7; 23,123 9,336 Tfansfers 120,600 Tot�l Governmeehl Revrnre�aad tnmfen 8,340,625 7,808,367 7,392,08? 6,R94,672 6,764,929 6,821,934 7�23,1 l3 7,891,030 8,285.130 6,951.760 Busloa�-type Activitld Unrestrictcd Investmrnt mmings 86.81 I (9.208) 49.973 2R.074 3Q448 20,727 14.976 9.986 14.60I 28.064 Mixcllaneous revrnuts 39,955 42,080 40,229 79,968 30,801 37,017 35.415 20,432 ?5.408 30,796 Transfcrs (120,600) Total Buaineu-type AeNvtHa 6,166 32.872 90,202 108,042 61,249 57,744 50,391 30,4t8 40,009 SR,860 TotalPrlmaryCoveroment R,346,791 _ 7,841,139 7,4R2,284 7,002,714 __ 6,826,17R _ 6,R79,67A __7,273,504 7,92I,448 __ 8,325,139 9,010,620 Change in net position: Govanmrnmlactiviues 1.195.235 130.505 (717,128) 2.340,435 (490.R42) (829.291) 112.781 97R.059 (365.8?2) 53,722 Business-type activities ,__„__(223.772) --_46.295 _ 301.534 ____975.772 _615,532 ___-(27.9691 -___(540.636) __(422.8421 (24.818) 523,260 Tohl Prlmary Coveromeet 5 971,463 S 176,800 S (4I5,594) S 3,316,207 S 124,690 S (857,260) S (427,855) S 555,?17 S (390.640) S 576,982 Note:The Village implemrnted GASB Slatemrnt No.63 during the fiscal year ended September 30,2013 and uulizcd the new cem�inology for all years presented. �22 VILLAGE OF TEQUESTA,FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ---------- - Geaenl Fued -------- --- --�--..._.. ------- Reserved T 82.197 S 3R3,766 S 129,394 S - S - S - f - S - S - S - Umescrved 5.180.611 4196.418 3.846,418 - - - - • - ' Nonsprndable - - - 228,049 178,478 144,SR1 207,869 161,036 174,985 212,042 Resuictod - - - 419,591 549,034 575,287 668,050 790,582 995,S12 1,440,911 Assign�d - - - 1.3�2.125 1.481.792 I.000.000 1.013.600 1.010.978 1.060,578 1.214.418 Unassigned 2.009.180 1.487.198 1.921.295 1.714.008 2.024,550 2.079.187 1.478.525 TofalCeaenlFuod S 5,262,SON S 4,680,184 S 3,975,812 S 4,028,945 S 3,696,502 S 3,641,163 S 3,603,527 f 3,987,146 S 4.310,262 S 4,345,896 All Other Goveromeohl Funda Reserved 12.752 29.508 I17.838 - - - - - - - Unrcserv�d,rcported in: Special revenue Pond 391.527 22.037 2I.072 - - - - - - - Capital Pmjxis funds 803,511 1,502.939 1.366.119 - - - - - - - Restricted - - - 45,771 30,775 4,033 291,654 286,965 348,031 335,858 Assigncd 646.977 608.377 159,726 9,726 16.441 110.232 60,149 TohlOtAerCoversmeenlFrnd� S 1,207,790 S 1,554,484 S 1,505,029 S 692,748 S 639,152 E 163,759 S 301,380 S 303,406 S 458,263 S 396,007 Note:The Village implanented GASB Statement No.54 for the fiscal year rnded September 30,201 I 123 VILLAGE OF TEQUESTA,FLORIDA CHANGES IN FUND BALANCES OF COVERNMENTAL FUNDS LAST TEN FI3CAL YEARS _______ (MODIFIED ACCRUAL BAS4S OF ACCOUNTING) ___ 21pB 2009 _ 2010 2011 2013 20U 30U 2015 M16 71117 Revnw Tnd f 6,871,639 S 6,�38,871 f 5,958,822 S 5,6083W S S,SOq6I7 f 3,606,IM S 5,981,0/8 S 6,379,721 f 6,95�,985 f 1,611,077 �ypyp�uomm�d 787.036 77A.373 fl39.110 T/6,300 755.792 '75I.728 816,327 811.950 825.990 836.780 F�c6'seEu �67,2% �66,311 133.766 111,HI 793.731 780.160 AOI,B59 �62,71i /69.126 153,{96 C3ugn br cvip 57/.937 597,369 687,7J2 688.679 948.J95 901.659 1.102,I% 1.192,142 1,246301 1,273,991 Imyowu�mlY 280.100 292,990 N17.7i0 123.110 303.16J 503.7W 519.188 531,016 550.730 361,J50 Gmb,ewYrLWbmmddwrlou 76.Id8 77.SB1 - - 126.90/ 61.185 21.166 17,79{ 79.733 2).662 Ii�medpm�b 299.059 111J71 279.875 33i,917 417.702 I30�69 477.478 3/6,529 530.591 606,126 Ipee! 152,602 &773 71.067 33.775 19,173 23,316 13,1&t 7,139 B,dQS I5,605 FmmdforEime C0.7M 31.877 21.RI 204,273 37.5]9 12,187 319.598 ISOa23 67.010 33,713 Mioe�emw J8,24I 80.607 63,OD9 1/1,902 86,OW 98,H1 60,853 20,017 28,J89 /0,660 ReaadroysYin 103,627 120,5% 161,192 162,631 167,636 IC7,703 I36,906 192,256 198.683 207,%5 1�kn 2,575 851 18,257 - TeW Revea� 9,685,738 9,ON,6R &��.89I 8,887353 9,029,072 8,816,701 9,813,031 IO,Ji4,201 10,963,622 11,701178 EapeMitYrta Oerts: Gae�lgo�v�m I,i20,23B 1,I7],158 1,3/1,075 1.010,�17 1,969,613 1,528,71� 1.611,291 1,615,339 1,811,777 2,I00,039 Publieafe�y S.U9,202 S.III.JIS 5.830.739 5.565.091 5.902.568 5.902,{79 5.900.978 6,201.180 6,154,7119 6.6I;707 T�bloo 691.552 710,3M 738,J23 111,93� 713,673 879,169 838,787 I,010,126 1,203,513 1,167,532 [.emue�mice �67.7�0 567,711 619,N0 56&7!9 SSI,002 561,9]8 507.069 327,22J 6D9.009 679.Y61 Capi�luqYy 257.373 75i,980 59t,22/ 97J,810 733,689 IN1,399 831,240 799.457 309,J99 356,224 DeN�wiee: Pmcip�l 572,712 27&871 28/,873 271.035 282.577 2I7.81Y9 J06.611 J31.630 428.018 N0.676 Iveert 200,2M 171,397 159,506 118.186 137.027 125.054 II<,798 113.986 106.848 92,166 FiW chngec 5,890 _ 9,<77 10,286 10.099 9,&I 11,870 12,776 103{5 _ 18,693 19,I40 10,103,910 TablE�pndin'a 8,855.97J _ 9,370,582 9,578,721 9.662,701 9.415,III 9,377.032 _ 10.212,286 10.641.SK 11.777.�36 Eacen(Oelleiewy�of Reveew OverEipntllhro 629.363 (2J5,930) (753,83'� (759,IC8) p8b,0/0) (330,771) (372,839) 171.915 322,076 (35,958) OIYm Flued�g 9evrtn N�n) T�fm'v 97,�,300 1.611,811 277,5�9 ZSO,OW 251.300 O]O,MO I30.000 65.000 366,600 106.000 Tmh�wm (803.7110) (1.642R13) (277.5�9) QS0.000) (251J00) (420.M0) (IS0.000) (83�0001 (]66.800) (�Ub,UDb) Cyftl 4ae u oroqion ' ' ' ' " " 432.841 753.J30 132,77a qye p� - 23.123 9.376 Tafalq6arFW�dngSourta�Urs� IH,iB! - - - • - 432.810 257,730 t55,89Y 9,376 Vn CY�qe 1�F�ed Bal�sen f 9/9,%5 f ¢I5,930) S (733,83'n f (739,118) f _(J86.0/0) f (370,731) I 99,985 f 785.665 f 477,973 S (26,622) _ -_- __ ____ _ _ ____ ____ ____ ___ ______.... ._.. . Debt Servke u�Paemlage of NwnpinlEyeedllYrts 8.97,G 518% <95X 4.81X I.637G O.tr3% 0.52X <.57X S.IB% 4.68X 124 VILLAGE OF TEQUESTA,FLORIDA ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY _ LAST TEN FISCAL YEARS Centcally Real Propc[ty Personal Property Assessed Pmperty Total Estimated Estimated Estimated Estimated Assessed Actual"Just" Actual"lust" Actual"JusY' AcNxl'7ust" Value as a Taxable Value of Ta�cable Value of Taxable Value of Taxable Direct Value of Pe�crntage of Fiscal Year Ended Assessed Taxable Assessed Taxable Assessed Taxable Assessed Tax Taxable Actual September30 _ Value Property Value Property _ Value Property Value Rate Property __ Value __ 2008 S 992.309,662 S 1,410p66,330 5 24,589,752 $ 27,733,698 $ 489,214 S 489,214 S 1,017,388,628 5.7671 S 1,438,689,242 71% 2009 905,243,765 1,263,380,924 20,238,412 26,800,875 724,859 730,883 926,207,036 5.767I 1,290,912,682 72% 2010 813,253,151 1,087,782,592 19,867,770 25,872,707 713,541 718,791 833.834,462 5.7671 I,II4,374,090 75% 2011 759,663,I52 990,74I,690 20,087,425 26,205,842 471,680 476,546 780,222,257 5.7671 IA17,424,078 �7% 2012 746,532,525 972,735,340 17,997,653 23,646,754 487,407 49I,873 765,017,585 5.7671 996,873,967 77% 2013 760,886.279 985.098,719 17,464.955 23,010.389 1,559,808 1,564.811 779,911.042 5.767I 1.009,673,919 77% 2014 797,213.933 1,036,624,755 17,442,002 22,943.347 1,675,609 1,680,227 8I6,331,544 6.0500 1,061,248,329 77% 2015 844,999,610 1,154,086,000 17,344,269 22,968,598 1,593,192 1,832,732 863,937,071 62920 I,I78,887,330 73% 2016 909,292.932 1,269,361.269 19.880.161 25.574.708 t.810.329 1.837.722 93Q983,422 62920 1,296,773.699 72% 2017 978,487.013 1.404.754,183 21.837.763 27.617,131 1.900,210 1,907,953 1.002.224,986 6.2920 1.434,279,267 70% Souree: Palm Beach County Pmpeny Apprai�s ofTice: Form DR�(13V Revised RecapiNlation of the Ad Valorem Rolls of Tequesta,Palm Beac6 County Florida 125 VILLAGE OF TEQUESTA,FLORIDA PROPERTY TAX RATES-ALL DtRECT AND OVERLAPPING GOVERNMENTS (Per S1.000 of Assessed Value) LAST TEN FISCAL YEARS Direct Rates Overlapping Rates(I) S.Florida Jupiter FI.Island Children's Counry Fiscal Year Ended Village County Everglades School County Water Mgmt. Inlet Nay.District Services Health Care September 30 Ra[e Counry Debt Conswction District Library District District (F[ND) Council District 2008 5.7671 3.7811 0.2002 0.0894 73560 0.5441 0.5346 0.0909 0.0345 0.5823 0.8900 2009 5.7671 3.781I 0.1845 0.0894 7.2510 0.5427 0.5346 0.I000 0.0345 0.6009 0.9975 2010 5.7671 4.3440 0.2174 0.0894 7.9830 0.5518 0.5346 0.1253 0.0345 0.6898 I.145I 2011 5.7671 4.7500 0.2460 0.0894 A.1540 0.6069 0.5346 O.1364 0.0345 0.7513 1.1451 2012 5.7671 4.7815 0.2110 0.0624 8.1800 0.608t 0.1785 O.1364 0.0345 0.7475 1.1250 2013 5.7671 4.7815 0.2087 0.0613 �.7780 0.6066 0.1757 0.1364 0.0345 0.7300 1.1220 20I4 6.0500 4.7815 0.2037 0.0587 7.5860 0.6065 0.1685 0.1364 0.0345 0.7025 I.OS00 2015 6.2920 4.7815 0.1914 0.0548 7.5940 0.6024 0.1577 0.1285 0.0345 0.6745 I.O800 2016 6.2920 4.7815 O.1462 0.0506 7.S120 0.5985 0.1459 0.1216 0.0320 0.6677 1.0426 2017 6Z920 4.78(5 0.1327 0.0471 7.0700 0.5933 0.1359 O.II45 0.0320 0.6833 0.8993 (t)Overlapping rates are those of local and county governments that apply to property owners within the Village of Tequesta. Sources: Palm Beach Caunty Property Appraiser's office 126 VILLAGE OF TEQUESTA,FLORIDA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2017 2008 Percentage of Percentage of Taxable Total Village Taxable Total Village Assessed Taxable Assessed Taxable Taxpayer Value Rank Value Value Rank Value Tamwest Realry,Inc(County Line Plaza) $ 22,616,882 1 2.26% $ 19,415,557 I 1.91% GHM Tequesta Holdings,LLC 15,658,517 2 1.56% DDR S.E.Tequesta,LLC(Teq.Shoppes) 13,500,612 3 135% 9,000,000 2 0.88% RCMR JV,LLC 10,852,162 4 1.08% 7,400,000 4 0.73% Terrace Communities Tequesta,LLC 8,126,541 5 0.81% 7,693,231 3 OJ6% Florida Power&Light Co. 8,110,296 6 0.81% ALS North America,Inc. 5,876,367 7 0.59% SLO ML LLC 5,2I5,741 8 0.52% 5,260,477 6 0.52% Taylor WilliamB. 4,146,061 9 0.41% Elliot Edward W JR 4,092,121 l0 0.41% Royal Tequesta LLC 5,278,909 5 0.52% Casa Del Sol of Tequesta,LLC 5,257,610 7 0.52% JMZ Tequesta Properties,INC 5,157,852 8 O.S l% AHC Purchaser Inc 4,822,561 9 0.47% Tequesta Country Club 4,430,714 10 0.44% Totel $ 98,195,300 9.80% $ 73,716,911 7.26% Source: Palm Beach Counry Tax Collector's System,tax year 2017 127 VILLAGE OF TEQUESTA,FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Ta�ces Collected within the Collections Fiscal Year Levied for Fiscal Year of the Levy in "Cotal Collecdons to Date(2) Ended forthe Fiscal Percentage Subsequent Pereentage September 30, Year(1) Amount of Levy Years Amount of Levy 2008 S 5,863,796 $ 5,663,439 96.6% $ 11,089 $ 5,674,528 96.8% 2009 5,341,529 S,I62,044 96.6% 24,896 5,186,940 97.1% 2010 4,809,222 4,627,732 96.2% 13,079 4,640,811 96.5% 2011 4,S 13,447 4,338,395 96.1% 22,498 • 4,360,893 96.6% 2012 4,425,793 4,254,037 96.1°/a 17,343 4,271,380 96.5% 2013 4,502,727 4,337,570 963% 21,690 4,359,260 96.8% 2014 4,946,692 4,755,463 96.1% 14,121 4,769,584 96.4% 20I5 5,437,423 5,237,859 96.3% 5,t85 5,243,044 96.4% 2016 5,866,490 5,651,698 963% 4 5,651,702 96.3% 2017 6,314,407 6,083,598 963% -- 6,083,598 963% (()The tax levied in a fiscal yeaz is based on the taxable value of the prior year (2) Includes discountstaken by property taxpayers. •Break down by the years for this amount was not available. Source: Palm Beach County Tax Collector's office. I28 VILLAGE OF TEQUESTA,FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS _ Govemmental AcUvities __ _ Business-type Activities Total Percentage Fiscal Year Ended Revenue Notes Capital Revenue Notes Primary of Personal Per September 30 Bonds Payable Leases Bonds Payable Government [ncome Capita 2008 - $ 3,917,908 $ 225,398 - $ 6,929,640 $ II,072,946 339% 1,877 2009 - 3,709,027 155,448 - 6,668,462 10,532,937 3.03% 1,794 2010 - 3,491,028 88,613 - 6,405,528 9,985,169 3.04% 1,774 201( - 3,263,515 45,092 - 6,132,618 9,441,225 2.92% 1,677 2012 - 3,026,070 - - 5,849,788 8,875,858 2.94% 1,572 2013 - 2,778,261 - - 5,553,570 8,331,831 2.65% 1,474 2014 - 2,519,635 385,059 - 5,245,703 8,150,397 2.50% 1,448 2015 - 2,249,720 561,001 - 4,925,818 7,736,539 237% 1,366 2016 - 1,968,023 547,423 - 4,592,420 7,107,866 1.81% 1,247 2017 - 1,674,030 400,739 - 4,244,561 6,319,330 1.53% 1,103 Note:Details regarding the Village's outstanding debt can be found in the notes[o the financial statements. 129 VILLAGE OF TEQUESTA,FLORIDA RATIO OF NET OUTSTANDING DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA _____ LAST TEN FISCAL YEARS (Z) Assessed (A) (B) (A-B) Ratio of Net Net Value of Gross Debt Service Net O/S Debt to Outstanding Fiscal Year Eoded (I) Taxable Outstanding Funds Outstanding Value of Debt September 30, Population Property Debt Available (O/S)Debt Taxable Property Per Capita 2008 5,898 S 1,017,388,628 S I1,072,946 $ 369,490 $ 10,703,456 1.05% 1,815 2009 5,872 926,207,036 10,532,937 - 10,532,93� L14% 1,794 2010 5,629 833,906,426 9,985,171 - 9,985,171 1.20% 1,774 2011 5,629 780,222,257 9,441,225 - 9,441,225 1.21% 1,677 2012 5,646 765,OI7,585 8,875,858 - 8,875,858 1.16% 1,572 2013 5,652 779,911,042 8,331,831 - 8,331,831 1.07% 1,474 2014 5,629 816,331,544 8,150,397 - 8,150,397 1.00% 1,448 2015 5,665 863,937,071 7,736,539 - 7,736,539 0.90% I,366 2016 5,699 930,983,422 7,107,866 - 7,107,866 0.76% 1,247 2017 5,731 1,002,224,986 6,319,330 - 6,319,330 0.63% 1,103 (1)Florida Estimates of Population-Bureau of Economic and Business research,University of Florida. (2)Form DR�22"Certificate of Final Taxable Value" 130 VILLAGE OF TEQUESTA,FLORIDA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS TohlAsusud Value (1) I 1,002.224,986 Legd Debt M�rgin Debt limitation•10°/a of lotal assessed value (2) 100,222,499 Taal boaded dcbt outstandin6 - - Less amount in debt smice fund - Total DeDt ApplicaAle to LlmitaHoa Legd Deb[Margin S 100,222,499 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 DebtLimit S 93,130.772 S 83,442,520 S 83,390.643 S 78.022,226 S 76,501,759 f 77,991,104 S 81.633,154 S 86,393,707 S 93,098,342 S 100.222,499 Tobl Net Debt Applleable to Limit L.egaldebtmargle S 93,130,772 S 83,442,520 S R3,390,643 S 78.022,226 S 76,501,759 S 77,991.104 S 81.633,IS4 S 86.393,707 S 93,098,342 S 100,222.499 Total IVet Debt Apptlubk to Limit u�Percentage ot Debt Limit 0.00% 0.00% 0.00% 0.00% 0.00°/. 0.00% 0.00% O.00X O.00Ye 0.00°/. (1�Form DR�22"Certificate of Final Taxable Valuc" (2)Villege of Tcquesta Charter Section 5.02 Limitations 131 VILLAGE OF TEQUESTA,FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVTTIES DEBT AS OF SEPTEMBER 30,2017 Estimate Estimate Share of Net Percentage Direct and Debt Applicable to Overlapping Govemmental Unit Outstanding Tequesta Debt (a) (b) OVERLAPPING Palm Beach Counry $ 103,305,000 0.61% $ 630,161 P.B.C.School Boazd t 1,396,000 0.61% 69,516 Subtotal,overlapping debt 699,676 DIRECT DEBT Village ofTequesta 2,074,769 100.00% ___ 2,074,769 Total direct and overlapping debt $ 2,774,445 (a)Sources:Palm Beach County and PBC School Board Note:For debt repaid with property ta�ces,the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the Village taxable assessed value and dividing it by the PBC taxable assessed value. (Data pmvided by the PBC Property Appraiser's Office) Overlapping governments are those[hat coincide,at least in part,with the geographic boundaries of the Village of Tequesta.This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by lhe residents and businesses of the Village of Tequesta. This process recognizes that,when considering the Village's ability to issue and repay long-term debt,the entire debt burden bome by the residents and businesses should be taken into account. However,this does not imply that every taxpayer is a resident and therefore responsible for repaying the debt of each overlapping govemment. 132 VILLAGE OF TEQUESTA,FLORIDA PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS Net Fiscal Piedged Less: Available Debt Service(2) Year Revenues(1) Expenditures Revenue Priucipal Interest Coverage 2008 515,700 275,836 239,864 259,846 15,990 0.87% 2009 - - - - - - • 2010 - - - - - - 2011 - - - - - - 2012 - - - - - - 2013 - - - - - - 2014 - - - - - - 2015 - - - - - - 2016 - - - - - - 2017 - - - - - - Note: Details regarding the Village's outstanding debt can be found in the notes to the fmancial statements. (1) Pledged revenues include franchise fees,licenses and permits from Fund 101. Fund 101 closed in fiscal year 2009. (2)Debt paid in fuil in fiscal year 2008. 133 VILLAGE OF TEQUESTA,FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Per Palm Beach Capita County Fiscal Population Personal Personal Median Unemp(oyment Year (1) Income(2) Income(2) Age(3) Rate(4) 2008 5,898 $ 326,224,278 $ 55,311 47.5 7.3% 2009 5,872 347,311,184 59,147 47.5 9.7% 2010 5,629 328,497,182 58,358 47.5 1 L4% 2011 5,629 323,447,969 57,461 49.9 i l.0% 2012 5,646 302,061,000 53,500 49.9 9.2% 2013 5,652 314,409,456 55,628 49.9 7.1°/a 2014 5,629 326,397,565 57,985 49.9 6.0% 2015 5,665 379,067,810 66,914 49.9 5.3% 2016 5,699 391,766,357 68,743 49.9 5.2% 2017 5,731 412,322,526 71,946 49.9 3.7% Sources: (1)Florida Estimates of Population-Bureau of Economic and Business research,University of Florida. (2) US Department of Commerce,Bureau of Economic Aaalysis,Regional Economic Information System. (3) U.S.Census Bureau,2010 Census (4) U.S.Department of Labor,Bureau of Labor Statistics,Labor Market Statistics Center, Local Area Unemployment Staristics Program 134 VILLAGE OF TEQUESTA,FLORIDA PRINCIPAL EMPLOYERS-PALM BEACH COUNTY CURRENT YEAR AND 1VINE YEARS AGO 2017 2008 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment Palm Beach County School Board 21,200 1 N/A 21,718 1 N/A Tenet Healthcaze Corporation 6,136 2 N/A 4,500 3 N/A Palm Beach County Government 5,928 3 N/A 11,319 2 N/A NextEra Energy/Florida Power&Light 4,021 4 N/A 3,632 4 N/A Hospital Corporation of America(HCA) 3,550 5 N/A 3,395 5 N/A Boca Raton Regional Hospital 2,800 6 N/A 2,100 10 N/A Florida Atlantic University 2,761 7 N/A 2,838 7 N/A Veterans Health Administration 2,468 8 N/A 2,207 8 N/A Bethesda Health,[nc 2,200 9 N/A Office Depot(Headquarters) 2,034 10 N/A 2,100 9 N/A Jupiter Medical Center Wackenhut Corporation 3,000 6 N/A 53,098 N/A 56,809 N/A Source: Business Development Board of Palm Beach County Employment information for the Town is not available Informarion for yeaz 2008 is not available,information for We year 2009 is used 135 VQ.LAGE OF TEQUESTA,FLORIDA FULL-TIME EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2008 2009 2010 201t 2012 2013 2014 2015 2016 2017 Govemmeotal AcNviHes General govemment I5.0 I5.0 10.0 10.5 10.5 I l.5 I0.5 103 10.3 10.8 Public safety 50.0 49.0 50.0 49.0 50.0 53.0 S l.0 51.0 52.0 53.0 Transportation 4.0 4.0 4.0 4.0 4.0 5.0 5.0 5.9 6.9 8.1 Leisure services 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Total Governmeohl Acdvities 72.0 7 LO 67.0 66.5 67.5 72.5 69.5 70Z 722 74.9 Business-type ActiviHes Water ISA I6.0 I5.0 14.5 14.5 16.5 16.5 18.6 18.6 20.4 Stortnwater I.0 I.0 I.0 IA l.0 I.0 I.0 I.2 2.2 L7 Total Business-type Acdvitles 16A _ I7.0 _ 16.0 __15.5 15.5 17.5 U.5 19.8 20.8 22.1 Total Primary Government 88.0 88.0 83.0 82.0 83.0 90.0 87.0 90.0 93.0 97.0 Source: Village of'Cequesta Human Resource Departrnent Notes: A full-time employce is scheduled to work 2,088 hours per year(including vacation aod sick leave). Full-time-equivalent employment is calculated by dividing total labor hours by 2,088. 136 VILLAGE OF TEQUESTA,FLORIDA OPERAT[NG INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2008 2009 2010 2011 2012 20t3 2014 2015 2016 20U Goverommtal Activitia General govemment Re�stered votecs 4,439 4,612 4,505 4,543 4,676 4,854 4,702 4,634 4,813 4,017 Public safrty: No.of full-time certiSed police otficers 17 l S 17 l9 I 1 ' 18 20 19 l8 19 No.of calls received 3,535 3,533 3,I78 3,266 3,272 3,571 3,548 3,853 3,109 3,442 No.of arrests 224 25l 296 204 129 136 168 174 94 108 No.of parking viola6ons 171 13l l24 82 149 328 120 207 61 39 No.of incident numbers issued 965 887 881 595 622 691 725 552 345 3l2 Fire department: No.of full-time certified 6re6ghters 20 2l 21 22 21 21 18 22 22 22 No.ofemergencyresponses I,143 1,189 1,043 1,096 1,155 t,372 1,197 1,29t 1,409 1,286 No.ofhansports 62l 651 562 622 695 675 693 1,006 8l7 722 No.of fires extinguished/alartns 522 538 481 474 460 697 504 285 254 309 No.of inspections 435 476 480 462 495 539 7l3 499 654 742 Building,zoning: No.ofbuildingpermits issued 906 784 812 800 883 9l4 929 1,034 1,583 I,755 No.ofbuilding inspectioas conducted 2,039 1,771 1,579 1,728 1,931 2,176 2,201 1,705 2,472 3,O17 Leisure srnices: No.of Spring Classes 8 8 t0 10 10 10 8 8 l2 10 No.of Sumrt�er Classes 4 5 4 4 4 4 4 4 4 4 No.of Movies 4 4 3 3 3 3 4 3 3 3 Businartype AcHvides W ater: No.of customers 4,968 4,983 4,982 5,019 4,996 5,037 5,039 5,038 5,055 5,042 Average daily consumption 2.35I mg 2.175 mg 2.175 mg 2.698 mg Z.550 mg 2.454 mg 2.422 mg 2.500 mg 2.600 mg 2.700 mg Saurces:Various Village deparm�ents 'The number is much lower than the year before due to increased number of reserve officers ro cover for the full-nme o@'icers that leR the department during the FY 2012. 137 VILLAGE OF TEQUESTA,FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Function/Program 2008 2009 2010 2011 2012 2013 2014 3015 2016 2017 Goveromental ActiviAes General govemment: Municipal center 1 I I I 1 I l t 1 I Public safety Police: No.of stations 1 I I I 1 1 l I I 1 No.of patrol units 7 9 IS 15 I l 10 l l IO 12 10 Fire: No.of stations 1 I 1 I l t l I l 1 No.of ambulances 2 2 3 3 3 3 3 2 2 2 No.of pwnpers 2 2 3 3 3 3 3 3 3 2 Trensportation: Mites of street lane miles 43 "24 24 24 24 24 24 24 24 24 No.of bridges t l l t I I I l I I Leisure services No.of parks 3 4 4 5 5 5 6 '• 6 6 6 No.of park acreage 48 50 53 54 54 54 62 " 62 62 62 No.of playgrounds 2 2 2 2 2 2 2 2 2 2 No.of basebalUsoftball diamonds 3 3 3 3 3 3 3 3 3 3 No.of skate-parks I I l l l I I I t l Business-type acdvitles: Water: Miles of water mains 72 72 73 72 72 73 73 '73 77 77 No.offire hydrants 430 430 430 430 430 433 409 430 456 435 Storage capaciry(thousands ofgallons) 3,250 3,250 3,250 3,250 3,250 2,750 2,750 2,750 2,750 2,750 Sources:Various Village departrrents •This report is presenting tl�e revised method in calculating the miles of street lane •'The green area tias been identified as a park(Linear/Green Mile park) 138 a • . . REPORTING SECTION CUM ACCOUNTANTS • ADVISORS INDEPENDENT AUDITORS'REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor,Village Council and Village Manager Village of Tequesta,Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fmancial 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, 2017 and the related notes to the financial statements, which collectively comprise the Village's basic fmancial statements, and have issued our report thereon dated March 29, 2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village's intemal control over financial reporting (intemal 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 intemal 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 perfornung their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combinarion of deficiencies, in intemal 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 intemal 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 intemal 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. � 139 MFIRCUMGROUP MEMBER Marcum ur ■ 525 Okeechobee Boulevard ■ Sufte 750 ■ West Palm Beach,Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 � mel'plmllp.com Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village's fmancial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regularions, 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 intemal control and compliance. Accordingly, this communication is not suitable for any other purpose. °�Gt��,c, �cP West Palm Beach, FL March 29, 2018 140 CUM ACCOUNTANTS • ADVISORS 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 RepoK on the Financial Statements We have audited the financial statements of the Village of Tequesta, Florida (the Village), as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated March 29, 2018. Auditors'Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Intemal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 29, 2018, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we deternune whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no recommendations made in the preceding annual financial audit report. O�cial Title and Legal Authority Section 10.554(1)(i�., 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. � 141 MARCUMGROUP MEMBER Marcum uP ■ 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach,Florida 33401 ■ PMone 561.653.7300 ■ Faz 561.653.7301 • maralmllp.com Financial Condition and Management Section 10.554(1)(i)S.a. and 10.556 (7), Rules of the Auditor General, require that we apply appropriate procedures and communicate the results of our determination as to whether or not the Village has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and idenrification of the specific condition(s) met. In connection with our audit, we determined that the Village did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Secrions 10.554(1)(i)S.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Village. It is management's responsibility to monitor the Village's financial condition, and our financial condition assessment was based in part on representations made by management and the review of fmancial information provided by same. T'his assessment was done as of the fiscal year end. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendarions. Annual Financial Report Sections 10.554(1)(i)S.b. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether the annual financial report for the Village for the fiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual fmancial audit report for the fiscal year ended September 30, 2017. In connection with our audit, we determined that these two reports were in agreement. Additional Matters Section 10.554(1)(i)3., 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 note any such fmdings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, Village Council, and management, and is not intended to be and should not be used by anyone other than these specified parties. °�(��,c, �cP West Palm Beach, FL March 29,2018 142 CUM ACCOUNTANTS • ADVISORS INDEPENDENT ACCOUNTANTS' REPORT ON COMPLIANCE PURSUANT TO SECTION 218.415 FLORIDA STATUTES To The Honorable Mayor, Village Council and Village Manager Village of Tequesta,Florida We have examined the Village of Tequesta's (the Village) compliance with Section 218.415 Florida Statutes for the fiscal year ended September 30, 2017. Management is responsible for the Village's compliance with the specified requirements. Our responsibility is to express an opinion on the Village's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Village complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Village complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Village's compliance with specified requirements. In our opinion, the Village complied, in all material respects, with Section 218.415 Florida Statutes for the fiscal year ended September 30, 2017. This report is intended to describe our testing of compliance with Section 218.415 Florida Statutes and it is not suitable for any other purpose. °�j Q��!�it,(, L�� West Palm Beach,FL Mazch 29,2018 0 nna�cunac�ouP MEMBER 143 Marenm ur ■ 525 Okeechobee Boulevard ■ Suite 750 ■ West Palm Beach,Florida 33401 ■ Phone 561.653.7300 ■ Fax 561.653.7301 ■ mara1m11p.Com