Village of Tequesta, Florida
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VILLAGE OF TEQUESTA, FLORIDA ꢀ 2016 Comprehensive Annual Financial Report ꢀ ꢀ ꢀ Fiscal Year Ended September 30, 2016ꢀ VILLAGEꢀOFꢀTEQUESTAꢀCOUNCILꢀMEMBERSꢀ2016ꢀ ꢀ Fromꢀleftꢀtoꢀright:ꢀCouncilꢀMemberꢀThomasꢀPaterno,ꢀViceǦMayorꢀVinceꢀArena,ꢀꢀ MayorꢀAbbyꢀBrennan,ꢀCouncilꢀMemberꢀFrankꢀD’Ambra,ꢀCouncilꢀMemberꢀSteveꢀOkunꢀ VILLAGE OF TEQUESTA, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 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 Organization 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 Government-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 Governmental Funds to the Statement of Net Position 22 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 24 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 30-97 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule – General Fund 98 Note to the Budgetary Comparison Schedule 99 Firefighters’ Pension Trust Fund Schedule of Changes in the Village’s Net Pension Liability and Related Ratios 100 Schedule of Village Contributions 101 Schedule of Investment Returns 102 Police Officers’ Pension Trust Fund Schedule of Changes in the Village’s Net Pension Liability and Related Ratios 103 Schedule of Village Contributions 104 Schedule of Investment Returns 105 General Employees’ Pension Trust Fund Schedule of Changes in the Village’s Net Pension Liability (Asset) and Related Ratios 106 Schedule of Village Contributions 107 Schedule of Investment Returns 108 Schedule of Funding Progress - Other Post Employment Benefits 109 Schedule of Village’s Proportionate Share of the Net Pension Liability – Florida Retirement System Pension 110 Schedule of the Village’s Proportionate Share of the Net Pension Liability – Retiree Health Insurance Subsidiary Program 111 Schedule of the Village’s Contributions – Florida Retirement System Pension Plan 112 Schedule of the Village’s Contributions – Retiree Health Insurance Subsidy Program 113 VILLAGE OF TEQUESTA, FLORIDA TABLE OF CONTENTS II. FINANCIAL SECTION (CONTINUED) SUPPLEMENTARY INFORMATION Combining and Individual Fund Statements and Schedules Combining Balance Sheet – Nonmajor Governmental Funds 114 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 115 Budgetary Comparison Schedule – Special Law Enforcement Trust Fund 116 Budgetary Comparison Schedule – Capital Improvement Fund 117 Budgetary Comparison Schedule – Capital Projects Fund 118 Combining Statement of Fiduciary Net Position 119 Combining Statement of Changes in Fiduciary Net Position 120 III. STATISTICAL SECTION Net Position by Component 121 Changes in Net Position 122-123 Fund Balances, Governmental Funds 124 Changes in Fund Balances, Governmental Funds 125 Assessed and Estimated Actual Value of Taxable Property 126 Property Tax Rates – All Direct and Overlapping Governments 127 Principal Property Taxpayers 128 Property Tax Levies and Collections 129 Ratios of Outstanding Debt by Type 130 Ratio of Net Outstanding Debt to Assessed Value and Net Bonded Debt Per Capita 131 Computation of Legal Debt Margin 132 Direct and Overlapping Governmental Activities Debt 133 Pledged-Revenue Coverage – Revenue Bonds - 1994 134 Demographic and Economic Statistics 135 Principal Employers – Palm Beach County 136 Full-time-Equivalent Village Government Employees by Function/Program 137 Operating Indicators by Function/Program 138 Capital Asset Statistics by Function/Program 139 IV. REPORTING SECTION 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 140-141 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 142-143 Independent Accountants’ Report On Compliance Pursuant To Section 218.415 Florida Statutes 144 INTRODUCTORY SECTION Village of Tequesta 345 Tequesta Drive Tequesta, FL 33469-0273 (561) 768-0424 www.Tequesta.org June 28, 2017 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 fulfill that requirement for the fiscal year ended September 30, 2016. 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 statements for the fiscal year ended September 30, 2016. The independent auditors’ report is located at the front of the financial section of this report. 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 statements. 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 municipal corporation organized June 4, 1957 pursuant to Special Act 57-1915, Laws of Florida. It is approximately 2 square miles and is located in northern Palm Beach County, Florida. It is almost completely built-out/developed. 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 north. It is empowered by state statute to extend its corporate limits by annexation, which it has done from time to time. The Village has a Council-Manager form of government. Policy-making and legislative authority are vested in an elected governing body of the Village consisting of a five-member Village Council. Council members are elected at large and select a Mayor at their first organizational meeting each year. Council members serve two- year terms, with three members elected every other year. The Village Council appoints the Village of Tequesta’s manager, who is responsible for hiring all Village employees. i ii iii iv VILLAGE OF TEQUESTA, FLORIDA ORGANIZATION CHART SEPTEMBER 30, 2016 v VILLAGE OF TEQUESTA, FLORIDA LIST OF PRINCIPAL OFFICIALS SEPTEMBER 30, 2016 VILLAGE COUNCIL Abby Brennan Mayor Vince Arena Vice-Mayor Frank D’Ambra Councilmember Steve Okun Councilmember Thomas Paterno Councilmember VILLAGE OFFICIALS Michael R. Couzzo, Jr. Village Manager Corbett, White, Davis & Ashton, PA Village Attorney Lori McWilliams, MMC Village Clerk JoAnn Forsythe, 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 Marcum LLP vi FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT ꢀꢀ INDEPENDENT AUDITORS' REPORT To The Honorable Mayor, Village Council and Village Manager Village of Tequesta, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Tequesta, Florida (the Village) as of and for the fiscal year ended September 30, 2016 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