Accept auditor's comprehensive financial report for 2023-2024

415 Florida Statutes 94 Impact Fee Affidavit 95 INTRODUCTORY SECTION J PINECREST Finance Department Profile of the Government The Village of Pinecrest was incorporated on March 12 1996 pur uant to Ordinance 95-207 adopted by the Miami-Dade Board of ounty ommis ioners on November 12 1995. The Village of Pinecrest occupies a land area of approximately 8 square miles and serves a population of 18 304. The Village of Pinecrest receives tax levies on real and personal properties located within its boundaries. The Village of Pinecrest has operated under the Council-Manager form of government since it inception. Policymaking and legislative authority are vested in a governing council consisting of the Mayor and four Council Members. The ouncil is responsible for adopting ordinances, adopting the budget, and appointing the Vi1lage Manager Vil.lage Clerk and Village Attorney. The Village Manager is responsible for carrying out the policies and directives of the C uncil, for overseeing the day-to-day operations of the government and for appointing department heads. The Village of Pinecrest offers a wide range of services including police protection maintenance ofroadways parks and recreation, building planning and zoning and stonnwater services. Certain services are provided through other govermnental entities such a the Miami-Dade Fire and Rescue Deprutment, Miami-Dade Public School Board and Miami-Dade County. The Village of Pinecrest has six major departments: Police Building and Planning Public Works, Parks & Recreation, Pinecrest Gardens ru1d General Government. General Government consists of the following sub-divisions: Village Council, Village Manager, Village Clerk, Finance, Information Technology, and Village Attorney. The annual budget serves as a foundation for the Village of Pinecrest" financial planning and control. All deprutments of the Village are required to submit requests for appropriation to the Village Manager and these requests are the starting point for developing a proposed budget. The Village Manager then presents this proposed budget to the Village Council for review. The Village Council is required to hold public hearings on the proposed budget and to adopt a final budget no later than September 30th the close of the Village' fiscal year. The appropriated budget is prepared by type of fund and department. No department may expend in excess of the amount appropriated for that department within an individual fund without the approval of the Village Manager. The Village Mrurnger may make transfers of approp1iati0ns within a department. Transfer of appropriations between departments require the approval of the Village Council through a budget amendment process. The Village Council approves supplemental appropriations. Budget to actual comparisons are provided in this report for the General Fund for which an approp1iated annual budget has been adopted. The General Fund budget to actual report is presented in the required supplemental infom1ation section of this report. Factors Affecting Financial Condition The infonnation pre ented in the fman ial statements is best understood when it is considered from the broader perspective of the specific en ironment with which the Village of Pinecrest operates. 12645 Pinecrest Parkway Pinecrest, Florida 33156 Marie Arteaga-Nariiio, MBA, Finance Director marteaga@pinecrest-fl.gov www.pinecrest-fl.gov 305.234.2121 ii PINECREST Finance Department Local economy. Despite the challenges the Corona Virus pandemic has presented and the inflation rate growth the Vjllage managed to maintain excellent stability. This medium sized municipality is an active community of involved citizens who take a genuine interest in the social business cultural and governing aspects of their Village. The Village is comprised of an affluent residential housing stock and several retail shopping malls. There is no industrial area in the community. Long-term fmancial planning. The Village bas undertaken several capital improvement projects as part of its five-year capital improvement plan. The Village of Pinecre t ha provided funding for improvements at Pinecrest Gardens: Lakeview ramps and terraces, Lower Garden electrical upgrades Cypress Hall deck Administrative office furniture, video equipment, digital signage, master plan improvements Banyan Bowl lighting upgrades and a golf cart· Community Center: room dividers landscape beautification, fitness center equipment and patio furnitW'e· Suni1and Park: bleachers and canopy, pickle ball court resurfacing landscape beautification athletic field LED lighting and a golf cage; Evelyn Greer Park: landscape beautification; Coral Pine Park :multipurpose room renovation phase 2 park improvements and court equipment; Flagler Grove Park: fencing, a golf cart and a storage facility· Gary Matzner Park: master plan ite development; Veteran's Wayside Park: master plan update· Aleyda Mas Park: purchase of land and improvements to structure Village Wide: sidewalk improvements, Ficus rep.lacement program, street resurfacing, traffic signal mas wrapping the Kendall Shared Use construction document, roundabout lighting and monument construction; IT: Office 365, computer replacements and Clear Gov implementation; Police: license plate reader tasers and vehicles; Stormwater drainage improvements: and combined with assistance from the American Reco ery Plan, a potable water project. Financial policies. The Village of Pinecrest ha the following financial policies: Operating Budget Policy, Capital hnprovement Policy, Debt Management Policy Revenue Policy Investment Policy, Fund Balance Policy Account, Auditing & Financial Repo1ting Policy, Audit Committee & Auditor Selection Policy Capital Asset Policy Travel Policy Purchasing Policy Retiree Health Care Policy, Fraud Policy, Construction Guarantee Policy and Credit Card Policy. The Revenue Policy establishes that all one-time revenues will be matched with expendjtures to decrease the reliance on the fund balance. Pension. The Village of Pinecrest sponsors a defined contribution pension plan 40 I (a) with VOYA Financial. With the exception of sworn police personnel full time employees contribute seven percent (7%) of his or her pay to the plan, which is matched by a contribution by the Village of Pinecrest of thirteen percent (13%) for general employees, eighteen-point one percent (18.1%) for department heads and thirty-two-point sixty-seven percent (32.67%) for the Village Clerk and Village Manager. A defined benefit plan sponsored by the Florida Retirement System (FRS) was e tablished for sworn police personnel. Sworn police personnel who were employed at th tim the defined benefit plan by FRS was established had the option of remaining in the 40 I (a) plan sponsored by the ICMA RC (International City/County Management Association Retirement Corporation) at the 12645 Pinecrest Parkway Pinecrest, Florida 33156 Marie Arteaga-Norina, MBA, Finance Director marteaga@pinecrest-Fl.gov www.pinecrest-Fl.gov 305.234.2121 iii PINECREST Finance Department time. The 401 (a) is now managed by VOYA Financial. All newly hired sworn police personnel participate in the FRS. Additional information on the Village of Pinecrest pension benefits can be found in Note 9 of the financial statements. Awards and acknowledgements The Government Finance Officers Association of the United State and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of Pinecrest for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30 2023. This was the 28th year that the Village received th.is prestigious award. In order to be awarded a Certificate of Achievement, the government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. The report submitted for the Fiscal Year 2023 atisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program's requirements and it will be submitted 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 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. Credit must also be given to the Mayor and the Village Council for their unfailing support for maintaining the highest tandards of professionalism in the management of the Village of Pinecrest's finances. - , DGA Village Manager 12645 Pinecrest Parkway Pinecrest, Florida 33156 Marie Arteaga-Narifio Finance Director Marie Arteaga-Nariiio, MBA, Finance Director • marteaga@pinecrest-fl.gov www.pinecrest-fl.gov 305.234.2121 iv Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of Pinecrest Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 Executive Director/CEO v Organizational Chart Village of Pinecrest, Florida 2023-2024 Citizens Village Council Village Attorney Village Manager Police Public Safety Communications Administrative Operations Finance Building & Planning Building Planning Public Works Stormwater Utility Transportation Parks & Recreation Park Maintenance Leisure Services Community Center Pinecrest Gardens Information Technologies Administrative Services Human Resources Communications Village Clerk Advisory Committees vi Joseph M. Corradino Mayor jcorradino@pinecrest-fl.gov Term Ends 11/2026 Katie Abbott Councilmember - Seat 2 kabbott@pinecrest-fl.gov Term Ends 11/2024 Yocelyn Galiano, ICMA-CM Village Manager manager@pinecrest-fl.gov Serves at the Pleasure of the Village Council Priscilla Torres, MMC Village Clerk clerk@pinecrest-fl.gov Serves at the Pleasure of the Village Council Mitchell Bierman Village Attorney attorney@pinecrest-fl.gov Serves at the Pleasure of the Village Council Ken Fairman Councilmember - Seat At-Large kfairman@pinecrest-fl.gov Term Ends 11/2026 Anna Hochkammer Councilmember - Seat 1 ahochkammer@pinecrest-fl.gov Term Ends 11/2024 2023-2024 Village Council and Charter Officers Shannon del Prado Vice Mayor - Seat 3 sdelprado@pinecrest-fl.gov Term Ends 11/2024 vii INDEPENDENT AUDITORS’ REPORT 1        8950 SW 74th Court I Suite 1210 I Miami, FL  33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM  INDEPENDENT AUDITORS’ REPORT Honorable Mayor, Members of the Village Council and Village Manager Village of Pinecrest, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Pinecrest, Florida (the “Village”) as of and for the fiscal year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village, as of September 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 8950 SW 74th Court I Suite 1210 I Miami, FL  33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM  In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 4-14 and 51-57 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 2  3  8950 SW 74th Court I Suite 1210 I Miami, FL  33156  T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM  Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 3, 2025, on our consideration of the Village’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Village’s internal control over financial reporting and compliance. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida March 3, 2025 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  4 As management of the Village of Pinecrest, Florida, we offer the Village of Pinecrest’s financial  statements in this narrative overview and analysis of the financial activities of the Village of Pinecrest  for the fiscal year ending September 30, 2024.  We encourage readers to consider the information  presented here in conjunction with additional information that we have furnished in our letter of  transmittal.  While the threat of a possible recession affecting the US economy has diminished significantly, the  sluggish return to optimal inflation levels translates into decreased purchasing power and higher  interest rates when borrowing. Inflation results in higher costs across the board — from goods and  utilities to personnel expenses. Successfully navigating a time of inflation can be challenging, but with  a strategic mindset the Village can endure and even come out stronger on the other end. Continuing  to understand that the national economic recovery may be slow and how that may affect the Village’s  future finances is essential to Pinecrest’s future economic well‐being.  Appreciation rates are so  strong in Pinecrest that despite a nationwide downturn in the housing market, Pinecrest real estate  has continued to appreciate in value faster than most communities. As the nation continues to  maneuver through these unprecedented crises, the Village maintained a conservative and proactive  stance with respect to its finances.  Understanding that the national economic recovery may be  stalled,  and  how  that  may  affect  the  Village’s  future  finances,  is  essential  to  Pinecrest’s  future  economic wellbeing.  The Village was able to maintain an excellent financial standing amidst so many  concerns in fiscal year 2024.   Financial Highlights   The  assets  and  deferred  outflow  of  resources  for  the  Village  of  Pinecrest  exceeded  its liabilities at the close of the most recent fiscal year by $86,504,531 (net position).  The government total net position decreased by $12,678,196. The decrease was due to the increase in liabilities discussed in the next section. The total assets remained to some degree the same, with a slight decrease of about $.14M. The cash and cash equivalents grew by $4.9M, offset by a decrease in capital assets of $5.0M. The cash line increased by the bond that was issued in January 2024 for $13.375M plus a premium of $1.8M. As of the close of the fiscal year, $4M of those funds remain unspent, thereby increasing the cash balance.  The capital assets decreased by $5M. Asset additions were $15.4M. The largest acquisition paid for with the bond, to purchase land that is now the Aleyda Mas Park, for a total cost of $10.1M.  However,  the  Village  also  completed  the  Potable  Water  projects,  that  cost $12,333,055. This project was presented in construction in progress in prior years. The assets were transferred to the Miami Dade Water and Sewer Department for management. The conveyance of the asset shows as a loss on disposal of asset on the Statement of Activities as there was no sales price attached to the transfer (there is another minor amount of $1,000 for  another  asset  disposal).  The  accounts  receivable  decreased  by  $.04M.  The  Village continued  its  concentrated  effort  to  collect  on  past  due  accounts  and  resulted  in  this reduction.  The deferred outflows grew by $1.1M, of which $1.3M is in the category of Special Masters, offset by a dip of $.2M in pension liability. The Special Masters growth represents the zoning department’s efforts to ensure compliance with local regulations and the resulting violations occurred when not corrected within the allotted time frame.  The liabilities increased by $11.7M, which is the main factor in the decrease of the total net position of $12.7M. The accounts payable and accrued liabilities decreased a modest $.247M, part of the timing of everyday management of payments.  There was a $.2M reduction in the prior  year  in  unearned  revenues  from  America  Recovery  Plan  (ARP)  funding  for  projects completed offset by the $12.1M growth in noncurrent liability debt for the FY23 bond. The deferred inflows of resources increased by about $1.9M, mostly in the growth of Special Masters. As mentioned previously, the Special Master represents the zoning department’s efforts to ensure compliance. These Special Masters in the liability section offset the amount in the asset section. The recognition of revenue will occur once the violation is paid and thereby decrease these amounts. The pension line increased by $.84 due to the rising cost of the program.   VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  5  At the close of the current fiscal year, the Village of Pinecrest government funds reported  combining ending fund balances of $29,061,482 an increase of $5,500,271 in comparison  with the prior year.  Approximately 9.2% of this total amount, $7,196,994 is available for  spending at the government’s discretion (Unassigned Fund balance). The financial position of  the Village governmental funds increased, and the overall financial position continues to be  excellent. The increase is attributable to the revenue reported for the prior year’s $362K ARP  funding  that  was  unearned  at  the  time.  The  cash  on  hand  grew  $5.5M,  which  is  mostly  accountable to the bond issuance and capital projects that are pending.      At the end of the current fiscal year, the Unassigned Fund balance for the General Fund was  $7,196,994 or 19.6% of the total General Fund expenditures and transfers. It is important to  note that previously, the financial reports did not delineate the Emergency Event Designation  that is now included in the assigned section of the fund balance. In the prior fiscal year, the  Village increased the Emergency Event Designation from $3 million to $5 million. This decision  secures funding in the event of an emergency, such as a hurricane.      The Village of Pinecrest total bank debt increased by $8,037,754 or 23.3% during the current  fiscal year. The Village issued a bond in the amount of $13.375 million with a premium of  $1.8M  to  be  used  for  $2.1  million  in  capital  improvements  at  the  parks  and  $1.8M  for  transportation projects, and $11M for park acquisition and improvement.      The Village received federal funding from the American Recovery Plan of $9,593,852. The  funding was allocated as follows: $7,491,407 to the potable water project, $1,300,700 for  stormwater projects, $528,852 for a capital project in Pinecrest Gardens, and $272,893 for  an employee vaccine incentive to protect against the Covid‐19 virus. The funds have been  received and $322K is deferred revenue until the stormwater projects are completed. All  other project funds have been earned and completed. With the completion of the portable  water project, all residents in the Village of Pinecrest have access to hook up to the county  for potable water.       Overview of the Financial Statements      This  discussion  and  analysis  are  intended  to  serve  as  an  introduction  to  the  Village  of  Pinecrest’s basic financial statements.  The Village of Pinecrest’s basic financial statements comprise  three components: 1) government‐wide financial statements, 2) fund financial statements and 3)  notes to the financial statements.  This report also contains other supplementary information in  addition to the basic financial statements themselves.      Government‐wide  financial  statement.    The  government‐wide  financial  statements  are  designed to provide readers with a broad overview of the Village of Pinecrest’s finances in a manner  similar to a private‐sector business.      The statement of net position presents information on all of the Village of Pinecrest’s assets,  liabilities, and deferred inflow/outflow of resources with the difference between the two 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 Pinecrest is improving or deteriorating.      The statement of activities presents information showing how the government’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 flow. Thus,  revenues and expenses are reported in this statement for some that will only result in cash flow in  the future fiscal periods (i.e. uncollected taxes and earned but unused vacation leave).      Both  of  the  government‐wide  financial  statements  distinguish  functions  of  the  Village  of  Pinecrest that are principally supported by taxes and intergovernmental revenues (governmental  activities) from other functions that are intended to recover all or a significant portion of their costs  through user fees and charges (business‐type activities).  The governmental activities of the Village  include general government, police and public works (including highways, parks, and planning and  building).  The business‐type activities of the Village include stormwater activities.  VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  6 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  Pinecrest, 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 Pinecrest are  governmental and proprietary funds.  Governmental funds.  Governmental funds are used to account for essentially the same  functions  reported  as  governmental  activities  in  the  government‐wide  financial  statements.   However, unlike the government‐wide financial statements, governmental fund financial statements  focus on near‐term inflow and outflow of spendable resources, as well as on balances of spendable  resources available at the end of the fiscal year.  Such information may be useful in evaluating a  government’s near‐term financing requirements.  Because the focus of governmental funds is narrower than that of the government‐wide  financial statements, it is useful to compare the information presented for governmental funds with  similar  information  presented  for  governmental  activities  in  the  government‐wide  financial  statements.   By doing so, readers may better understand the long‐term impact of the government’s  near term financing decisions.  Both the governmental fund balance sheet and the governmental  fund statement of revenues, expenditures, and changes in fund balances provide reconciliation to  facilitate this comparison between governmental funds and governmental activities.  The Village of Pinecrest maintains fourteen (14) individual governmental funds. Information  is  presented  separately  in  the  governmental  fund  balance  sheet  and  in  the  governmental  fund  statement of revenues, expenditures, and changes in fund balances. The Village has the following  governmental funds:  General, Transportation, CITT, Capital Projects, nine (9) Special Revenue funds  and a Debt Service Fund.  Only the General, Debt Service and Capital Projects funds are considered  to be major funds.  Data from the other funds are combined into a single, aggregated presentation.   Individual data for these non‐major governmental funds are provided in the form of combining  statements elsewhere in this report.  The Village of Pinecrest adopts an annual appropriated budget for its General Fund as well as  for its other governmental funds.  A budgetary comparison statement has been provided for the  General Fund to demonstrate compliance with this budget.  Proprietary  Fund.    The  Village  of  Pinecrest  maintains  one  type  of  proprietary  fund  ‐  an  Enterprise Fund.  Enterprise funds are used to report the same functions presented as business‐type  activities in the government‐wide financial statements.  The Village of Pinecrest uses an Enterprise  Fund to account for its stormwater activities.  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 Stormwater Fund, which is considered a major fund of the Village of Pinecrest.  Notes to the financial statements.  The notes provide additional information that is essential to a  full understanding of the data provided in the government‐wide and fund financial statements.  The combining statements referred to earlier in connection with non‐major governmental  funds are presented immediately following the footnotes.    VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  7 Government‐wide Financial Analysis  As noted earlier, net position may serve over time as a useful indicator of a government’s  financial position.  In the case of the Village of Pinecrest, assets and deferred outflow of resources  exceeded liabilities by $86,504,531 at the close of the most recent fiscal year.  By far the largest portion of the Village of Pinecrest’s net position, $74,340,219 or 85.9%  reflects its investment in capital assets (i.e. land, buildings, machinery, and equipment), less any  related debt used to acquire those assets that are still outstanding. The Village of Pinecrest uses  these capital assets to provide services to citizens. Consequently, these assets are not available for  future spending.  Although the Village of Pinecrest’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  because  the  capital  assets  themselves  cannot  be  used  to  liquidate  these  liabilities. The investment in capital assets grew again this year, which   is in line with the Village’s  commitment to the betterment of its community through parks and infrastructure investment.  2023 2024 2023 2024 2023 2024 Current and other assets 32,595,803 $ 38,087,290 $ 3,803,203 $ 3,195,206 $ 36,399,006 $ 41,282,496 $ Capital assets 97,270,353 91,523,218 9,260,356 9,986,197 106,530,709 101,509,415 Total assets 129,866,156 129,610,508 13,065,582 13,181,403 142,931,738 142,793,935 Deferred outflows of resources 13,787,393 14,898,410 - - 13,787,393 14,898,410 Current and other liabilities 3,536,859 3,750,619 1,411,978 746,969 4,948,837 4,497,588 Long term bond or bank debt 42,488,054 54,645,980 - - 42,488,054 54,645,980 Total liabilities 46,024,913 58,396,599 1,411,978 746,969 47,436,891 59,143,568 Deferred inflows of resources 10,097,480 12,042,222 - - 10,097,480 12,042,222 Net investment in capital assets 80,554,017 64,354,022 9,260,356 9,986,197 89,814,373 74,340,219 Restricted 1,709,194 2,310,702 - - 1,709,194 2,310,702 Unrestricted 5,267,935 7,405,373 2,391,225 2,448,237 7,659,160 9,853,610 Total net position 87,531,146 $ 74,070,097 $ 11,651,581 $ 12,434,434 $ 99,182,727 $ 86,504,531 $ Governmental Activities Business-type Activities Total VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  8 Governmental activities.  Governmental and Business Type (stormwater) activities decreased the Village of  Pinecrest’s net position by $12,678,196. Key elements in the changes in net position activity are as follows:    • Revenues decreased by $13,614,522 or 31.2%, while expenses increased by $3,085,114 or 7.8% over the prior fiscal year. The reason for the drop in revenues is the $12.3M loss on disposal of asset when the potable water project was conveyed to the county water  department for $0 dollars. Without this transaction, the total sales would have been  $42.3M, which is more in line with $43.6M in FY23.  It is important to keep this one‐time  transaction in mind when reviewing the totals and percentages below, as this $12.3 M  transaction skews the FY24 figures.  The $3M decrease in the current year’s capital grants  line was due to the $3M of ARP funding for the potable water project that occurred in the  prior year. In this fiscal year expenses increased in parks by about $.8M due to the addition  of a new park and the additional programming and services, the public works expenses also  increased due to increased infrastructure work of about $.5M and the increase in interest  expense of $.698K for the new bond that was issued. • Taxes, $22,394,766, comprised 81.3% of the total governmental revenues, $27,551,450 during the fiscal year.  Most of this category is property taxes, $ 15,488,266. The millage rate  remained at 2.35, however the tax base of property values increased at an exponential rate.   The taxable value grew about $801M or about 11.8% over the prior year. The net increase in  ad valorem revenues was $1,565,979. Franchise and utility taxes accounted for another  $5,117,884 of this total and experienced an increase of about $230K due to rate increases in  electricity rates. 2023 2024 2023 2024 2023 2024 Revenues: Program revenues: Charges for services 10,574,099 $ 10,883,612 $ 1,266,709 $ 1,179,416 $ 11,840,808 $ 12,063,028 $ Operating grants and contributions 208,586 102,207 616,489 - 825,075 102,207 Capital grants and contributions 5,890,841 2,045,168 - - 5,890,841 2,045,168 General revenues: Taxes 20,656,924 22,394,766 - - 20,656,924 22,394,766 Other 4,201,591 (7,874,303) 201,660 1,271,510 4,403,251 (6,602,793) Total Revenues 41,532,041 27,551,450 2,084,858 2,450,926 43,616,899 30,002,376 Operating expenses: General government 5,745,271 5,657,984 - - 5,745,271 5,657,984 Public safety 13,058,494 13,284,653 - - 13,058,494 13,284,653 Building, planning and zoning 3,330,626 3,651,311 - - 3,330,626 3,651,311 Parks and recreation 8,628,580 9,406,581 - - 8,628,580 9,406,581 Public works 7,146,539 7,637,690 - - 7,146,539 7,637,690 Interest 676,216 1,374,280 - - 676,216 1,374,280 Stormwater - - 1,009,732 1,668,073 1,009,732 1,668,073 Total Expenses 38,585,726 41,012,499 1,009,732 1,668,073 39,595,458 42,680,572 Change in net position 2,946,315 (13,461,049) 1,075,126 782,853 4,021,441 (12,678,196) Net position - beginning 84,584,831 87,531,146 10,576,455 11,651,581 95,161,286 99,182,727 Net position - ending 87,531,146 $ 74,070,097 $ 11,651,581 $ 12,434,434 $ 99,182,727 $ 86,504,531 $ Governmental Activities Business-Type Activities Totals VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  9  Charges for services accounted for $10,883,612 or 39.5% of total governmental revenues. The  parks  and  recreation  line  experienced  an  increase  of  about  $247K  as  programming demands continue to grow while the expenses in this line increased by $778K. The parks department  now  has  a  new  park  to  maintain  and  develop.  At  this  point,  no  revenue generation is occurring in the new park acquisition.  Operating and capital grants and contributions accounted for $2,147,375 or 7.8% of total governmental revenues.  This line decreased by close to $3.9M. The drop is because in the prior year, the Village received a one‐time $3M grant from the American Recovery Plan for the potable water project.  This federal grant was a one‐time event to aid the community in times of an emergency. Another $500,000 was earned from the county in a matching grant for this same water project.  Another $450K was received for Pinecrest Garden all for capital improvements at the site. These grants were for the upper garden for sensory and inclusion facilities and a lower garden pathway improvement. Revenues by Source – Governmental Activities  (15,000,000) (10,000,000) (5,000,000) - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Charges Oper. Grants Cap. Grants Taxes Intergov. Other - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Gen Gov Pub Safety B&P Parks & Rec. Public Works Int -Debt Expenses Revenue VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  10 Financial Analysis of the Government’s Funds  The Village of Pinecrest used fund accounting to ensure and demonstrate compliance with  finance related requirements.  Governmental funds.  The focus of the Village of Pinecrest’s governmental funds is to provide  information on near term inflow, outflow and balances of spendable resources.  Such information is  useful in assessing the Village of Pinecrest’s financing requirements.  In particular, the Unassigned  Fund balance may serve as a useful measure of a government’s net resources available for spending  at the end of the fiscal year.  At the end of the current fiscal year, the Village of Pinecrest’s governmental funds (GAAP  basis) reported combined ending fund balances of $29,061,482 an increase of $5,500,271 or 23.3%  in  comparison  with  the  prior  year,  $23,561,211.  Approximately  9.2%  of  this  total  amount,  $7,196,994,  constitutes  an  unassigned  fund  balance,  which  is  available  for  spending  at  the  government’s discretion.  The remainder of fund balance is not available for new spending or is  assigned. The major reason for the increase is the increase in cash on hand of $5.5M for pending  capital projects from the bond offering of $4M.   The General Fund experienced an increase of $1,157,362. This was accomplished through the  excess of revenues over the expenses. An increase in community interest in park recreation, $664K  were coupled with the challenges of unfilled personnel positions, especially in the police and parks  departments.  Wage  increase  pressures  continue  in  the  effort  to  attract  personnel.  Investment  earnings were also high, about $627K, due to capital projects pending completion. The Capital Fund  increased $3,183,090 as capital improvements are planned with the remaining proceeds from the  bond used towards various park improvements and road projects.  The Debt Fund traditionally had  a  zero‐fund  balance  because  the  general  fund  transferred  the  exact  amount  needed  for  both  principal and interest payments each year.  However, a special assessment district was created to  cover the costs of the potable water not funded by the ARP grant.  This assessment is for a 25‐year  period. The tax bill of 2024 was year 3 of 25 of the assessment. The Debt Fund increased by $270,690  reflecting the payments received by residents that have not yet been paid out on the debt. The  special revenue assessments will be used to pay the $4.3M loan taken in fiscal year 2022 ($3,496,768  potable water/$803,232 capital project). The Non‐major governmental funds increased by $889,129  The changes in fund balance are as follows: Transportation fund increased $39,414 as funds are being  accumulated to fund future planned infrastructure projects, the Police Education Fund increased  $8,436 as the revenues received were less than the projects incurred this year,  the three 911 funds  combined decreased $30,663 due to less funding from the county for the dispatch operation, and   the Impact Fees Fund increased by $287,621 due to capital projects at the police department, parks  and municipal center pending completion.  The largest increase is in the CITT Public Transit Fund of  $584,321.  The CITT increase was due to a due to project delays from scarcity of materials. However,  those projects are planned and will move forward.   The General Fund is the chief operating fund of the Village of Pinecrest.  At the end of the  current fiscal year, the Unassigned Fund balance of the General Fund was $7,196,994.  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.  The unassigned Fund balance is 19.6% of total General Fund  expenditure including transfers and represents 55.4% of the total fund balance.   The  unassigned  fund  balance  of  the  Village  of  Pinecrest’s  General  Fund  increased  by $1,157,362 over the prior year. Starting in fiscal year 2023, the Village is showing the emergency event amount as an assigned part of the general fund. Also in fiscal year 2023, the emergency event amount increased from $3M to $5M.  The Police expenditures were under budget by $356,629 due to unfilled open positions and various capital projects that were not completed and will be carried over into the new year, such as the Cloud based CAD system upgrade, vehicle patrol vehicles, a new electronic citation program and speed data platforms. VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  11  General  Government  departments  combined  were  under  budget  of  $462,347.  The savings were mostly attributable to the attorney budget under $108,310 for less activity than planned, the general government line by $283,879 for unfinished projects such as the municipal center exterior painting of $79,675 and new workstations of $65,975, both of which were carried over into the new fiscal year.  Building and Planning was under budget by $189,581. The department has experienced a high workload and has been trying to fill open positions to meet the growth in demand.  Parks and Recreation were under $176,680. While budget amendments were made to provide for the increased demand in summer camps and programming, many planned repairs and purchases were delayed due to supply chain issues. $45,000 will be carried over into 2025 for the completion of a Suniland Park boundary survey. Proprietary Fund.  The Stormwater Fund accounts for revenues collected for the maintenance of the  stormwater collection function in the Village.  The Village maintains the canals and underground  pipes and there are operational costs associated with treating the water.  This year the unrestricted  net  position  went  from  $2,391,225  to  $2,448,237,  an  increase  of  $57,012.    This  minor  increase  reflects the fact that some of the planned projects have not been completed. Less funds were spent  on capital improvements than received this year.  Any excess funds will be used for future capital  improvements, which are depreciated over many years. A portion of the ARP funding, $1,300,700,  was allocated to the stormwater funds. Of this amount $978,211 of the projected was completed  and $322,489 was recorded as an unearned revenue until the projects are expended.  In Fiscal year  2024, a reduction of revenues occurred of about $100,646 for a refund to religious institutions that  were due a 50% reduction in their stormwater payments going back for four years. Revenues in total  did not decrease this year due to the many grants received for drainage projects and vulnerability  studies.   General Fund Budget Highlights  The budget to actual variances in the General Fund were:  Total Taxes, $ 372,599. $231,706 of the over budgeted revenues is due to rate increases that resulted in higher utility fees, $108,914 is from a higher property value applied to the same milage rate. The communication services tax is under due to a remapping of addresses that no longer pertain to the Village of $4,723 as well as a decrease in business tax of $18,491 due to some temporary changes in the business zone that are expected to fill and  increase in future years. Licenses and Permits, $873,533.  Much of the shortfall is in the building permit fees which were under budget by $843K. The revenues in this line came in at $3,007K against a budget of $3,850K and under last year’s figures of $3,519K. The exponential growth of previous years may be slowing down. Charges for Services, $664,061.  The amount over budget is due to a larger than expected demand for recreational programs and activities at the parks. The demand for programming in the parks, Community Center and Pinecrest Gardens grew more than planned and offset the costs of increased contract services for the new offerings. VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  12 Intergovernmental  revenue,  $87,581.  The  overage  was  a  result  of  increased  spending coupled  with  higher  prices  due  to  inflation.  The  Sales  tax  receipts  were  $97K  and  state revenue sharing was over by $21K for these reasons.  They were offset by a decrease in the county tax, which is distributed based on population. This line was under budget by $71K. We also received Covid of $27K that was not budgeted, due from 2021. During the year, actual revenues were more than actual expenditure, increasing the fund balance $6,325,771 or $1,157,362 when including the transfers in and out. This increased the general  fund balance from $11,429,609 to $12,586,971.   The amended budget had planned for a fund appropriation of ($182,500). However, due to  the excess revenues over expenditures, the fund increase was $1,157,362.  The following highlights the reason for the budget amendments in the General Fund:   $62,920 for retirement contributions that were due to an employee from prior years  $30,540 in bond issuance costs of $180,543 compared to the budget figure of $150,000  Increase in health insurance rates absorbed by the Village of $24,295, in order to keep the employee whole compared to prior year benefit costs  $126,000 for a Cyber professional employee that was hired in January 2024 to improve IT security at the Village  The promotion of the IT manager to a director, $12,600  The Happiness Project, $52,630  Police Department CAD Cloud and vehicle printers used in the capital fund from unused departmental budget, $300,000  $115,760 of sidewalk funds moved from the general fund to the capital fund  $154,450 in community center increase in contract programs and services, offset by increase in departmental revenues  $1,600 for the 911 wireless funds due to a delay in the receipt of funds from the county. Capital Asset and Debt Administration  Capital assets.  The Village of Pinecrest’s investment in capital assets for its governmental  activities as of September 30th amounts to $101,509,415 (net of accumulated depreciation).  This  investment in capital assets includes land, buildings, equipment, roads, sidewalks, infrastructure,  stormwater system, and construction in progress.  The total decrease in the Village of Pinecrest’s  investment in capital assets for the current fiscal year was 4.7%.  Major capital asset events during the current fiscal year included the following:   Stormwater improvements  Transportation projects such as shared use documents, monument signs, round‐about sculptures, and traffic signal mast wraps  Renovations and improvements at Pinecrest Gardens, the Community Center and various parks.  Village‐wide Road and sidewalk improvement  Police vehicles and equipment  Computer replacements and software VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  13  Construction in Progress. This year the Village transferred $733,775 from construction in progress into the appropriate asset class as well as the conveyance of the potable water project to the county, of $12,333,055. This line shows as the deletion in Note 4 of the fixed assets of $13,066,830.  The following list details the items currently in construction in progress.  Master Plan Update, Veteran Wayside  Park Improvement Phase 2 And Multipurpose Room, Coral Pine  Ramps and Terrace Upgrade, Pinecrest Gardens  Master Plan Site Update, Gary Matzner Additional information on the Village of Pinecrest’s capital assets can be found in Note 4.  Long‐term loan at the end of the fiscal year, the Village of Pinecrest had total bank debt  outstanding of $37,758,059.  Village of Pinecrest’s Outstanding Debt  Governmental Activities       2023       2024  Revenue Bonds  $26,403,254    $37,758,057    The Village of Pinecrest increased its total debt by $11,354,803 or 43.3% during the current  fiscal  year.    There  are  seven  loan  issues  outstanding:  Community  Center/Coral  Pine  Park  for  $2,218,200 which matures in FY 2029, a Capital Improvements loan with an outstanding balance of  $1,163,600  which  matures  in  FY  2028,  another  Capital  Improvements  loan  with  an  outstanding  balance  of  $7,014,895  that  matures  in  FY  2041,  and  a  Refund,  land  purchase  and  Capital  Improvements loan of $4,630,737 that matures in FY 2036, A Potable Water and Capital Note was  issued in 2022 in the amount of $4,078,999 in FY47 and is funded in large portion by an special  assessment to those homes benefitting from the potable water project (3,371,050 balance at the  end of FY24). The Village issued a 2023 capital improvement loan with a current outstanding balance  of $5,561,628 which matures in 2042. This year a bond was issued for $13,375,000 and $1,808,545  premium  for  the  purchase  of  land  and  other  capital  improvements.  The  principal  remaining  is  $13,090,000.  Six of the seven loans are bank loans. In January of 2024 a Series 2024 bond was issued that earned  a AAA rating from S&P Global, a testament to the Village’s financial strength.   Additional information on the Village of Pinecrest’s long‐term debt can be found in Note 6  2023 2024 2023 2024 2023 2024 General government 5,053,229 $ 4,989,218 $ - $ - $ 5,053,229 $ 4,989,218 $ Public safety 2,157,147 2,772,142 - - 2,157,147 2,772,142 Building and planning 331,228 286,584 - - 331,228 286,584 Parks 51,721,908 62,378,366 - - 51,721,908 62,378,366 Public works 38,006,841 21,596,908 - - 38,006,841 21,596,908 Stormwater - - 9,260,356 9,986,197 9,260,356 9,986,197 Totals 97,270,353 $ 91,523,218 $ 9,260,356 $ 9,986,197 $ 106,530,709 $ 101,509,415 $ Governmental Activities Business-type Activities Total VILLAGE OF PINECREST, FLORIDA  MANAGEMENT’S DISCUSSION AND ANALYSIS  September 30, 2024  14 Economic Factors and Next Year’s Budgets and Rates   Property values in the Village continue to grow and have allowed the Village to keep one of the lowest millage rates in the county, at 2.35, the same as the prior fiscal year.  The  job  market  is  tight  and  the  ability  to  fill  positions,  especially  in  the  parks  and recreation, is country wide. The Village is researching ways to ensure competitive fringes and offerings to attract prospective employees.  The increased inflationary trend is of concern, but the Village is aggressive in securing pricing that is within our budget plans.  Interest rate increases will affect the project costs and future loan issues. The Village will work to ensure the financial effects are considered and managed as much as possible.  There is some uncertainty about the future of the property tax collection as the governor of Florida is proposing to make changes to the process. The discussion of tariffs increases may  also  impact  future  operations.  The  Village  remains  vigilant  over  the  possible implication to the sources of income and expenditures. During the current fiscal year, the unassigned fund balance for general governmental funds was $7,196,994,  which allows the Village financial flexibility. The Village has $5 million assigned for an Emergency Event,  providing for an extra measure of safety and conservatism. The Village also has $12,658,544 of fund balance  in the Capital Projects Fund that is either restricted or assigned for various capital improvement projects. Requests for Information    This financial report is designed to provide a general overview of the Village of Pinecrest’s finances.   Questions concerning any of the information provided in this report or requests for additional financial  information should be addressed to the Department of Finance, 12645 Pinecrest Parkway, Pinecrest,  Florida 33156‐5931 or emailed to finance@pinecrest‐fl.gov.  BASIC FINANCIAL STATEMENTS VILLAGE OF PINECREST, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2024 Governmental Activities Business-Type Activities Total ASSETS Cash and cash equivalents 30,584,378 $ 3,170,222 $ 33,754,600 $ Accounts receivable - net 7,492,497 24,984 7,517,481 Prepaid Items 10,415 - 10,415 Capital assets not being depreciated 32,334,067 - 32,334,067 Capital assets being depreciated, net 59,189,151 9,986,197 69,175,348 Total assets 129,610,508 13,181,403 142,791,911 DEFERRED OUTFLOWS OF RESOURCES Other post employment benefits 93,330 - 93,330 Pension 4,568,957 - 4,568,957 Special Master 10,236,123 - 10,236,123 Total deferred outflows of resources 14,898,410 - 14,898,410 LIABILITIES Accounts payable and accrued liabilities 3,540,736 103,556 3,644,292 Accrued interest 12,978 - 12,978 Unearned revenues 196,905 643,413 840,318 Noncurrent liabilities: Due within one year 3,719,502 - 3,719,502 Due in more than one year 50,926,478 - 50,926,478 Total liabilities 58,396,599 746,969 59,143,568 DEFERRED INFLOWS OF RESOURCES Other post employment benefits 150,745 - 150,745 Pension 2,082,211 - 2,082,211 Special Master 9,809,266 - 9,809,266 Total deferred inflows of resources 12,042,222 - 12,042,222 NET POSITION Net investment in capital assets 64,354,022 9,986,197 74,340,219 Restricted for: Public safety 53,708 - 53,708 Parks and recreation - - - Transportation 2,234,845 - 2,234,845 Unrestricted 7,427,522 2,448,237 9,875,759 Total net position 74,070,097 $ 12,434,434 $ 86,504,531 $ The notes to the basic financial statements are an integral part of these financial statements. 15 VILLAGE OF PINECREST, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Net Revenue (Expense) and Changes in Net Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-Type Activities Total Governmental activities General government 5,657,984 $ 960,439 $ 27,779 $ 124,999 $ (4,544,767) $ - $ (4,544,767) $ Police 13,284,653 5,196,410 74,428 134,366 (7,879,449) - (7,879,449) Building, planning and zoning 3,651,311 - - - (3,651,311) - (3,651,311) Public works 7,637,690 7,876 - 1,413,584 (6,216,230) - (6,216,230) Parks and recreation 9,406,581 4,718,887 - 372,219 (4,315,475) - (4,315,475) Interest on long-term debt 1,374,280 - - - (1,374,280) - (1,374,280) Total governmental activities 41,012,499 $ 10,883,612 $ 102,207 $ 2,045,168 $ (27,981,512) - (27,981,512) Business-type activities Stormwater 1,668,073 1,179,416 - - - (488,657) (488,657) Total business-type activities 1,668,073 1,179,416 - - - (488,657) (488,657) General revenues: Taxes: Property taxes 15,488,266 - 15,488,266 Franchise fees, based on gross receipts 2,175,848 - 2,175,848 Utility taxes 3,172,231 - 3,172,231 Communication service tax 984,872 - 984,872 Transportation tax 457,490 - 457,490 Business tax 116,059 - 116,059 Intergovernmental (unrestricted) 2,644,168 1,103,680 3,747,848 Investment income (unrestricted) 1,683,378 167,830 1,851,208 Miscellaneous 132,206 - 132,206 Loss on disposal of asset (12,334,055) - (12,334,055) Total general revenues 14,520,463 1,271,510 15,791,973 Change in net position (13,461,049) 782,853 (12,678,196) Net position - beginning 87,531,146 11,651,581 99,182,727 Net position - ending 74,070,097 $ 12,434,434 $ 86,504,531 $ Program Revenue The notes to the basic financial statements are an integral part of these financial statements. 16 VILLAGE OF PINECREST, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 Major funds Nonmajor Total General Debt Service Capital Projects Governmental Governmental Fund Fund Fund Funds Funds ASSETS Cash and cash equivalents 14,803,636 $ 732,064 $ 12,072,411 $ 2,976,267 $ 30,584,378 $ Receivables 1,054,339 5,288,167 825,711 324,280 7,492,497 Prepaid items 6,397 - 4,018 - 10,415 Total assets 15,864,372 6,020,231 12,902,140 3,300,547 38,087,290 DEFERRED OUTFLOWS Special masters violations 10,236,123 - - - 10,236,123 Total deferred outflows of resources 10,236,123 - - - 10,236,123 Total assets and deferred outflows of resources 26,100,495 $ 6,020,231 $ 12,902,140 $ 3,300,547 $ 48,323,413 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 564,835 $ - $ 243,596 $ 216,644 $ 1,025,075 $ Accrued liabilities 2,515,661 - - - 2,515,661 Unearned revenue 196,905 - - - 196,905 Total liabilities 3,277,401 - 243,596 216,644 3,737,641 Deferred inflows of resources: Special masters violations 10,236,123 - - - 10,236,123 Potable water special assessment - 5,288,167 - - 5,288,167 Total deferred inflows of resources 10,236,123 5,288,167 - - 15,524,290 Fund balances: Nonspendable: Prepaid items 6,397 - 4,018 - 10,415 Restricted: Transportation - - - 2,234,845 2,234,845 Public safety - - - 53,708 53,708 General government - - - 795,350 795,350 Special assessment debt service - 732,064 - - 732,064 Capital improvements - - 3,941,055 - 3,941,055 Committed: Capital improvements - - 7,610,761 - 7,610,761 Assigned: Emergency event 5,000,000 - - - 5,000,000 Health care 7,475 - - - 7,475 Capital improvements 376,105 - 1,102,710 - 1,478,815 Unassigned 7,196,994 - - - 7,196,994 Total fund balances 12,586,971 732,064 12,658,544 3,083,903 29,061,482 Total liabilities and fund balances 26,100,495 $ 6,020,231 $ 12,902,140 $ 3,300,547 $ 48,323,413 $ The notes to the basic financial statements are an integral part of these financial statements. 17 Fund balances - total governmental funds (see page 17) 29,061,482 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: Governmental capital assets 262,413,515 Less accumulated depreciation (170,890,297) 91,523,218 Deferred outflows related to OPEB 93,330 Deferred inflows related to OPEB (150,745) Deferred outflows related to pension 4,568,957 Deferred inflows related to pension (2,082,211) 2,429,331 Bonds payable (37,758,057) Premiums on debt (1,805,545) OPEB liability (250,670) Net pension liability (13,098,966) Accrued interest payable (12,978) Compensated absences (1,732,742) (54,658,958) Revenue collected outside of the period of availability is not available to pay for current period expenditures and therefore, is a deferred inflow in the funds. 5,715,024 Net position of governmental activities (see page 15) 74,070,097 $ RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS VILLAGE OF PINECREST, FLORIDA Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the governmental funds. Amounts reported for governmental activities in the statement of net position are different as a result of: Deferred inflows/outflows of resources in the statement of net position will be recognized in future periods. SEPTEMBER 30, 2024 TO THE STATEMENT OF NET POSITION The notes to the basic financial statements are an integral part of these financial statements. 18 VILLAGE OF PINECREST, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Major Funds Nonmajor Total General Debt Service Capital Projects Governmental Governmental Fund Fund Fund Funds Funds REVENUES Taxes 21,937,276 $ - $ - $ 457,490 $ 22,394,766 $ Licenses and permts 3,294,467 - - 326,399 3,620,866 Intergovernmental 2,912,026 - 124,999 1,220,755 4,257,780 Charges for services 5,878,896 - - - 5,878,896 Fines and forfeitures 1,677,393 - - 6,490 1,683,883 Special assessments revenues - 223,163 - - 223,163 Investment earnings 952,032 26,935 565,399 139,012 1,683,378 Miscellaneous 142,773 - - - 142,773 Total revenues 36,794,863 250,098 690,398 2,150,146 39,885,505 EXPENDITURES Current: General government 5,814,457 - - - 5,814,457 Public safety 12,344,033 - - 171,136 12,515,169 Public works 1,043,347 - - 1,149,917 2,193,264 Parks and recreation 7,530,250 - - - 7,530,250 Buildings, planning and zoning 3,210,405 - - - 3,210,405 Debt Service: Principal - 2,020,196 - - 2,020,196 Interest and other charges - 1,194,356 180,543 - 1,374,899 Capital outlay 526,600 - 13,551,973 828,564 14,907,137 Total expenditures 30,469,092 3,214,552 13,732,516 2,149,617 49,565,777 Excess (deficiency) of revenues over expenditures 6,325,771 (2,964,454) (13,042,118) 529 (9,680,272) OTHER FINANCING SOURCES (USES) Issuance of debt, net - - 15,180,543 - 15,180,543 Transfers in - 3,235,144 1,044,665 888,600 5,168,409 Transfers out (5,168,409) - - - (5,168,409) Total other financing sources and uses (5,168,409) 3,235,144 16,225,208 888,600 15,180,543 Net change in fund balances 1,157,362 270,690 3,183,090 889,129 5,500,271 Fund balances - beginning 11,429,609 461,374 9,475,454 2,194,774 23,561,211 Fund balances - ending 12,586,971 $ 732,064 $ 12,658,544 $ 3,083,903 $ 29,061,482 $ The notes to the basic financial statements are an integral part of these financial statements. 19 VILLAGE OF PINECREST, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Net change in fund balances - total government funds (see page 19) 5,500,271 $ Amounts reported for governmental activities in the statement of activities are different because: Expenditures for capital outlay 14,907,137 Less current year depreciation (7,808,003) Net adjustment 7,099,134 (512,214) Capital outlays not meeting threshold for capitalization Disposal of capital assets (12,334,055) Net adjustments (12,846,269) Bond principal payments 2,020,196 Bond proceeds (15,180,543) (13,160,347) Certain changes related to pension and other post employment benefits (OPEB) assets and liabilities are not reported in the net change in the governmental funds: Change in deferred outflows of resources relating to pension (235,930) Change in deferred outflows of resources relating to other post employment benefits (OPEB) 11,308 Change in deferred inflows of resources relating to pensions (839,117) Change in deferred inflows of resources relating to other post employment benefits (OPEB) 6,861 (1,056,878) Change in net pension liability 1,116,756 Change in compensated absences (83,568) Change in OPEB liability (30,767) Change in accrued interest payable 619 1,003,040 Change in net position of governmental activities (see page 16) (13,461,049) $ Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. The net effect of various transactions involving capital assets (i.e., sales, trade-ins and donations) is to increase (decrease) net position. Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives. The issuance of long term debt (e.g., bonds, leases) provides current financial debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position resources to governmental funds, while the repayment of the principal of long term. The notes to the basic financial statements are an integral part of these financial statements. 20 VILLAGE OF PINECREST, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUND - STORMWATER SEPTEMBER 30, 2024 ASSETS Current assets: Cash and cash equivalents 3,170,222 $ Accounts receivable 24,984 Total current assets 3,195,206 Non-current assets: Capital assets: Capital assets being depreciated, net 9,986,197 Total non-current assets 9,986,197 Total assets 13,181,403 $ LIABILITIES Current liabilities: Accounts payable and accrued liabilities 103,556 Unearned revenue 643,413 Total current liabilities 746,969 Total liabilities 746,969 NET POSITION Net investment in capital assets 9,986,197 Unrestricted 2,448,237 Total net position 12,434,434 $ See notes to basic financial statements. 21 VILLAGE OF PINECREST, FLORIDA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUND - STORMWATER FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 OPERATING REVENUES Stormwater fees 1,179,416 $ Intergovernmental 1,103,680 Total operating revenues 2,283,096 OPERATING EXPENSES Operating, administrative and maintenance 1,430,034 Depreciation 238,039 Total operating expenses 1,668,073 Operating income 615,023 NON-OPERATING REVENUES (EXPENSES) Investment earnings 167,830 Total non-operating revenues (expenses) 167,830 Income before contributions and transfers 782,853 Change in net position 782,853 Total net position - beginning 11,651,581 Total net position - ending 12,434,434 $ See notes to basic financial statements. 22 Cash flows from operating activities: Cash received from customers, governments and other funds 1,938,203 $ Cash paid to suppliers (1,736,962) Net cash provided by operating activities 201,241 Cash flows from capital related financing activities: Acquisition and construction of capital assets (963,880) Net cash used in capital and related financing activities (963,880) Cash flows from investing activities: Interest and other income 167,830 Net cash provided by investing activities 167,830 Net decrease in cash and cash equivalents (594,809) Cash and cash equivalents, October 1 3,765,031 Cash and cash equivalents, September 30 3,170,222 $ Reconciliation of operating income to net cash provided by operating activities: Operating income 615,023 $ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 238,039 Change in assets and liabilities: (Increase) in: Accounts receivable 13,188 Increase (decrease) in: Accounts payable and accrued liabilities (306,928) Unearned revenue (358,081) Total adjustments (413,782) Net cash provided by operating activities 201,241 $ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 VILLAGE OF PINECREST, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUND - STORMWATER See notes to basic financial statements. 23 NOTES TO %$6,& FINANCIAL STATEMENTS VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 24 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Pinecrest (the Village) was incorporated March 12, 1996, pursuant to Ordinance 95-207 adopted by the Miami-Dade Board of County Commissioners November 12, 1995. The Village occupies a land area of eight square miles and serves a population of 18,419. The Village operates under a Council-Manager form of government and provides the following services: public safety (police), public works, building, planning and zoning, code enforcement, stormwater management, and parks and recreation. The basic financial statements of the Village have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to governmental units, which are generally accepted in the United States. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental and financial reporting principles. Significant accounting and reporting policies and practices of the Village are described below. A. Financial Reporting Entity The financial statements were prepared in accordance with the GASB, the reporting entity, which establishes standards for defining and reporting on the financial reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the Village, organizations for which the Village is financially accountable and other organizations for which the nature and significance of their relationship with the Village are such that exclusion would cause the reporting entity’s financials statements to be misleading or incomplete. The Village is financially accountable for a component unit if it appoints a voting majority of the organization’s governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the Village. Based upon the application of these criteria, there were no organizations that met the criteria described above. B. Government-Wide and Fund Financial Statements The basic financial statements include both government-wide (based on the Village as a whole) and fund financial statements. The government-wide financial statements (i.e. the statements of net position and the statement of activities) report information on all activities of the Village. The effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and the proprietary fund. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting is used for the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 25 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Village. The Village reports the following major governmental funds: General Fund – This fund is the Village’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Debt Service Fund – The debt service fund is used to accumulate resources and distribute principal, interest and bond related issuance costs on long-term debt. Capital Projects Fund – This fund receives transfers from the general fund as well as grants and accounts for purchases of land and improvements to the parks and buildings in the community. The Village reports one major proprietary fund: Stormwater Fund – This fund (an enterprise fund) accounts for the stormwater control activities of the community. Funds are received from business and residential users and used to maintain the stormwater collection system. Additionally, the Village reports other special revenue funds and a debt service fund. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the governments various functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. General revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the stormwater fund are charges to business and residential customers for stormwater system maintenance. Operating expenses report on the costs to maintain the stormwater system, the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses. D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance 1. Deposits and Investments – Cash and cash equivalents, which are cash and short-term investments with maturities of three months or less, include cash on hand, a repurchase agreement and investments with the State Board of Administration Investment Pool. Investments are reported at fair value. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 26 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 2. Interfund transactions – As the Village does not have any lending/borrowing arrangements between funds, all outstanding balances between funds are reported as "due to/from other funds". All amounts receivable from or payable to other funds are to be settled with expendable, available financial resources. Transactions which are recurring annual transfers between two or more funds are recorded as transfers in and out. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 3. Receivables – Receivables include amounts due from other governments and others for services provided by the Village. Receivables, including special assessments, are recorded when the related service is provided. 4. Restricted assets – Proceeds from impact fees, CITT surtax and 2nd local option gas taxes are classified as restricted in various special revenue funds since these resources are specifically earmarked for restricted purposes including law enforcement, transportation and recreational eligible items. 5. Prepaid items – Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. These costs are accounted for under the consumption method. 6. Capital assets – The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The threshold for capitalization is of $10,000. Capital assets of the Village are depreciated using the straight-line method over the following estimated useful lives: Buildings 40 years Improvements 15 years Equipment: Cars 5 years Trucks 10 years Equipment 5 years Computer equipment 3 years Computer software 7 years Infrastructure: Roads 25 years Stormwater system 50 years Sidewalks 20 years 7. Deferred outflows/deferred inflows of resources – In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Village only has three items that qualify for reporting in this category. One is the deferred charge on refunding resulting from the difference in the carrying value of a refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other two items are the deferred outflows relating to the pension plan (discussed in Note 9) and the deferred outflows relating to the OPEB plan (discussed in Note 10). VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 27 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 7. Deferred outflows/deferred inflows of resources (Continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Village has three items that qualify for reporting in this category. One is a deferred gain on refunding that results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second item is the deferred inflows relating to the pension plans and the OPEB plan. These are discussed in further detail in Note 9 and Note 10. The Village also has one other type of these items, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from certain charges for services and fines and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. The Village maintains balances for outstanding permit violations and code enforcement violations imposed through the Village’s Special Masters process. The balance represented as corresponding deferred outflows of resources and deferred inflows of resources are considered by the Village to be collectable as liens are placed on properties subject to enforcement measures. The balance for total violations under the Special Masters process on September 30, 2024 is approximately $10,236,123. 8. Compensated absences – Village employees are granted vacation and sick leave in varying amounts based on length of service and the department that the employee services. The Village’s sick leave policy is to permit employees to accumulate earned but unused sick pay benefits. Such leave is accrued and reported as a fund liability when it is probable that the Village will compensate the employee in the following fiscal year. Unused sick pay is not paid at termination. The Village’s vacation policy is that earned vacation must be taken within one year of the employee’s anniversary. Carryover is limited to two hundred and forty (240) hours. Unused vacation pay, if any, is paid with the employee’s termination or retirement. Those amounts estimated to be liquidated with expendable available financial resources from the General Fund are reported as expenditures and a fund liability of the General Fund. 9. Long-term obligations – In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or business-type activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as another financing source. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 10. Property taxes – Property taxes for the current year were assessed and collected by Miami-Dade County and subsequently remitted to the Village. Property taxes are assessed as of January 1 each year and are first billed (levied) and due the following November 1. Under Florida law, the assessment of all properties and the collection of all county, municipal, school board and special district property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws for the state regulating tax assessments are also designed to assure a consistent property valuation method statewide. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10 per $1,000 of assessed taxable valuation). The millage rate assessed by the Village for the year ended September 30, 2024, was 2.350 mills. The tax levy of the Village is established by the Village Council prior to October 1 of each year, and the County Property Appraiser incorporates the millage into the tax levy, which includes Miami-Dade County, Miami-Dade County School Board and special taxing districts. All property is reassessed according to its fair market value as of January 1 of each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of State Statutes. All real and tangible personal property taxes are due and payable on November 1, each year or as soon as practicable thereafter as the assessment roll is certified by the County Property Appraiser. Miami- Dade County mails to each property owner on the assessment roll a notice of the taxes due and Miami- Dade County also collects the taxes for the Village. Taxes may be paid upon receipt of such notice from Miami-Dade County, with discounts at the rate of 4% if paid in the month of November, 3% if paid in the month of December, 2% if paid in the month of January and 1% if paid in the month of February. Taxes paid during the month of March are without discount, and all unpaid taxes on real and tangible personal property become delinquent and liens are placed on April 1 of the year following the year in which taxes were assessed. Procedures for the collection of delinquent taxes by Miami-Dade County are provided for in the laws of Florida. There were no material delinquent property taxes at September 30, 2024. 11. Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. 12. Encumbrances  –  Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances lapse at year-end, valid outstanding encumbrances may be re- appropriated and become part of the subsequent year’s budget pursuant to state regulations. There were no outstanding encumbrances at year-end. 13. Net position – Net position is the result of assets and deferred outflows of resources less liabilities and deferred inflows of resources. The net position of the government-wide and proprietary funds are categorized into three components: Net investment in capital assets – this category consists of capital assets, reduced by accumulated depreciation and any outstanding debt incurred to acquire, construct or improve those assets excluding unexpended bond proceeds. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 13. Net position (Continued) Restricted net position – this category consists of all net position that has been restricted for general use by external parties (creditors, grantors, contributors, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. Unrestricted net position – consists of the net position not meeting the definition of either of the other two components. Restricted consists of net position with constraints placed on their use by external parties (creditors, grantors, contributors, or laws and regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. Unrestricted indicates that portion of net position that is available to fund future operations. Net position flow assumption – Sometimes the Village will fund outlays for a particular purpose from both restricted (i.e. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. It is the Village's policy to consider restricted net position to have been depleted before unrestricted net position is applied. 14. Fund Balance – As of September 30, 2024, fund balances of the governmental fund financial statements are classified as follows: Fund balances of the governmental funds are classified as follows: Non-spendable – amounts that cannot be spent either because they are in non-spendable form or because they are legally or contractually required to be maintained intact. Restricted – amounts that can be spent only for specific purposes because of constitutional provisions, charter requirements or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed – amounts that can be used only for specific purposes determined by a formal action of Village Council. Village Council is the highest level of decision making authority for the Village. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by Village Council. Ordinances and resolutions are equally changing to binding formal actions of the Village Council. Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the Village’s adopted policy, only Village Council may assign amounts for specific purposes. Unassigned – all other spendable amounts. The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in government funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 14. Fund Balance (Continued) Fund balance flow assumptions – Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund balance policy – The Village of Pinecrest will maintain a minimum unassigned fund balance in the General Fund of 10% of budgeted expenditures and transfers out. The Village shall strive to keep an additional unassigned fund balance for extraordinary expenditures and mitigation due to the Village being located in a hurricane zone. That amount is to be determined each year by Council during the budget process. 15. Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Although these estimates are based on management's knowledge of current events and actions, actual results may ultimately differ from those estimates. NOTE 2 – DEPOSITS AND INVESTMENTS Deposits In addition to insurance provided by the Federal Depository Insurance Corporation, all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or banking institution eligible collateral. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments The Village invests surplus funds in an external investment pool, the Local Government Surplus Funds Trust Fund (Florida PRIME). The State Pool is administered by the Florida State Board of Administration (SBA), who provides regulatory oversight. The Florida Prime has adopted operating procedures consistent with the requirement for 2a-7 like fund. The Village’s investment in the Florida PRIME is reported at amortized cost. The fair value of the position in the pool is equal to the value of the pool shares. These investments are exempt from fair value hierarchy level disclosure. The Village had the following investments as of September 30, 2024: Investment Fair Value Florida Prime 11,244,369 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 31 NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) Credit risk The Village has an investment policy that emphasizes the safety of principal while maintaining adequate liquidity to meet its needs. Investments are limited to the highest ratings by two of the nationally recognized statistical rating organizations - Nationally Recognized Statistical Rating Organization (NRSRO) and Standard and Poor’s and Moody’s Investment Services. The Florida PRIME is rated AAAm by Standard and Poor’s. The weighted average maturity (WAM) of the securities held in Florida PRIME is 35 days. The weighted average life (WAL) of Florida PRIME is 75 days. Redemption gates With regard to redemption gates for Florida PRIME, Chapter 218.409(8)(a), Florida Statutes, states, “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, and the Investment Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” Liquidity fees With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2024, there were no redemption fees, maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Concentration of credit risk GASB Statement 40 requires disclosure when the percent is 5% or more in any one issuer. External investment pools, such as Florida PRIME, are exempt from Concentration and Interest Rate Risk disclosures. The Village does not maintain any further investments for disclosure. Interest rate risk In accordance with our investment policy, the Village manages its exposure to declines in fair values by investing in conservative investments with the emphasis on safety of principal. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 32 NOTE 3 – RECEIVABLES As of September 30, 2024, receivables for the Village's individual major and nonmajor funds, in the aggregate including applicable allowances for uncollectible accounts, are as follows: Nonmajor General Debt Service Capital Projects Governmental Stormwater Fund Fund Fund Funds Fund Total Receivables Potable water special assessment $ - $ 5,288,167 $ - $ - $ - 5,288,167 $ Intergovernmental 226,125 825,711 324,280 - 1,376,116 Franchise and utility 744,172 - - - - 744,172 Ad-valorem taxes 42,207 - - - - 42,207 Fines 12,907 - - - - 12,907 Accounts - - - - 24,984 24,984 Other 36,842 - - - - 36,842 Allowance for uncollectible accounts (7,914) - - - - (7,914) 1,054,339 $ 5,288,167 $ 825,711 $ 324,280 $ 24,984 $ 7,517,481 $ Total unearned revenues as of September 30, 2024, are as follows: Occupational taxes collected in advance 72,800 $ Sponsorships collected in advance 124,105 Stormwater utility charges collected in advance 643,413 840,318 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 33 NOTE 4 – CAPITAL ASSETS Capital asset activity for the year ended September 30, 2024, was as follows: Additions Deletions Governmental activities: Capital assets, not being depreciated: Land 20,782,165 $ 10,054,611 $ - $ 30,836,776 $ Construction in progress 14,098,419 465,702 (13,066,830) 1,497,291 Total capital assets, not being depreciated 34,880,584 10,520,313 (13,066,830) 32,334,067 Capital assets, being depreciated: Buildings 28,270,683 - - 28,270,683 Improvements other than buildings 22,807,221 2,208,619 - 25,015,840 Machinery and equipment 8,621,707 1,332,119 (1,000) 9,952,826 Computer software 757,340 108,501 - 865,841 Infrastructure 165,015,112 959,146 - 165,974,258 Total capital assets, being depreciated 225,472,063 4,608,385 (1,000) 230,079,448 Less accumulated depreciation for: Buildings (8,863,157) (665,983) - (9,529,140) Improvements other than buildings (7,769,803) (1,164,732) - (8,934,535) Machinery and equipment (5,765,512) (904,861) - (6,670,373) Computer software (316,679) (70,548) - (387,227) Infrastructure (140,367,143) (5,001,879) - (145,369,022) Total accumulated depreciation (163,082,294) (7,808,003) - (170,890,297) Total capital assets, being depreciated, net 62,389,769 (3,199,618) (1,000) 59,189,151 Governmental activities capital assets, net 97,270,353 $ 7,320,695 $ (13,067,830) $ 91,523,218 $ Beginning Balance Ending Balance Additions Deletions Business-type activities: Capital assets, being depreciated: Infrastructure 12,670,542 $ 963,880 $ - $ 13,634,422 $ Total capital assets being depreciated 12,670,542 963,880 - 13,634,422 Less accumulated depreciation for: Infrastructure (3,410,186) (238,039) - (3,648,225) Total accumulated depreciation (3,410,186) (238,039) - (3,648,225) Total capital assets, being depreciated, net 9,260,356 725,841 - 9,986,197 Business-type activities capital assets, net 9,260,356 $ 725,841 $ - $ 9,986,197 $ Beginning Balance Ending Balance VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 34 NOTE 4 – CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 240,903 $ Public safety 692,600 Public works 5,033,335 Building and planning 56,567 Parks & recreation 1,784,598 Total depreciation expense - governmental activities 7,808,003 $ Business-type activities: Stormwater utility 238,039 $ Total depreciation expense - business-type activities 238,039 $ NOTE 5 – INTERFUND TRANSFERS The composition of interfund transfers as of September 30, , is as follows: NOTE 6 – LONG-TERM DEBT The Village has five debt issues outstanding at September 30, , all of which are considered direct borrowings. Principal and interest on these bonds are payable from a covenant to budget and appropriate legally available non- ad valorem revenues. Series 2015 is for the expansion of the Community Center and improvements at Coral Pines Park. The note bears interest at 2.40%. In the event of a default, the note contains a provision to bear interest at the default rate until the default is cured. Additionally, the Council or Lender shall have all remedies provided by law to collect amounts then due. Series 2019 was issued in the amount of approximately $2,617,100 to provide funding for various capital projects including improvement of the Community Center, the Municipal Center/Library, Pinecrest Gardens, and other parks within the Village. The note bears interest at 2.53%. In the event of a default, the note contains a provision to bear interest at the default rate until the default is cured. Additionally, the Council or Lender shall have all remedies provided by law to collect amounts then due. Series 2021A was issued in the amount of approximately $7,880,000 to provide funding for various park improvement projects including Pinecrest Gardens. The note bears interest at 2.22%. In the event of a default, the note contains a provision to bear interest at the default rate until the default is cured. Additionally, the Council or Lender shall have all remedies provided by law to collect amounts then due. Transfers Out Transfers In Amount Purpose General Fund Debt Service Fund 3,235,144 $ To provide debt service funds General Fund Capital Projects Fund 1,044,665 To provide capital funds General Fund Transportation Fund 590,000 To provide operational funds General Fund CITT Public Transit Fund 190,000 To provide operational funds General Fund Hardwire Fund 24,000 To provide operational funds General Fund Wireless Fund 61,600 To provide operational funds General Fund Prepaid Fund 23,000 To provide operational funds Total General Fund 5,168,409 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 35 NOTE 6 – LONG-TERM DEBT (CONTINUED) On July 1, 2021 the Village issued Series 2021B in the amount of approximately $5,750,526 to purchase a parcel of land for parks and recreational purposes, improvements to Pinecrest Gardens, and the refunding of Series 2011. The note bears interest at 1.92%. In the event of a default, the loan agreement has a provision that the Council or Lender shall have all remedies provided by law to collect amounts then due. The Village utilized $948,125 of the proceeds from the Series 2021B note to advance refund approximately $862,465 outstanding from the 2011 Series note. The net proceeds were deposited with an escrow agent to provide for future debt service payments on the 2011 Series bonds. As a result, the 2011 Series Note is considered to be defeased and the corresponding liability has been removed from the Village’s long-term liabilities. The advance refunding transaction resulted in an economic gain of approximately $124,763 derived from the difference between the present value of the prior debt net cash flow and the present value of the refunding debt service of approximately $1,088,507 and $951,210 respectively. On July 1, 2021 the Village issued the Capital Improvement Revenue Note, Series 2022 in the amount of $4,300,000 for the purpose of financing construction costs and capital projects related to the Village’s Potable Water Project. The note bears interest ranging from 3.215% to 3.510%. In the event of a default, the loan agreement has a provision that the Council or Lender shall have all remedies provided by law to collect amounts then due. On May 1, 2023 the Village issued the Capital Improvement Revenue Note, Series 2023A in the amount of $5,852,377 for the construction, acquisition, renovation, and equipping of certain capital improvements, including, but not limited to: (i) the construction, acquisition, renovation, and equipping of various park, athletic, and recreational facilities at the Suniland Park, Flagler Grove Park, Veterans Park, Coral Pine Park, and Gary Matzner Park; and (ii) construction, acquisition, renovation, and equipping of Kendall Drive Shared Use Path. The note bears interest at 3.92%. In the event of default, the loan agreement has a provision that the Council or Lender shall have all remedies provided by law to collect amounts then due. On January 2024, the Village issued the Florida Municipal Loan Council Revenue Bonds, Series 2024 in the amount of $13,375,000 for the purchase of a park and the construction, installation, renovation, or equipping costs incurred during the construction period. The bonds bear interest at 5% payable on an annual basis commencing April 1, 2024. The Series 2024 bonds mature on October 1, 2043. Maturities of these direct borrowings are as follows: Year ending September 30, Principal Interest Total 2025 2,209,913 667,691 2,877,604 2026 2,275,564 634,259 2,909,823 2027 2,342,170 599,711 2,941,881 2028 2,414,849 564,032 2,978,881 2029 2,179,023 527,079 2,706,102 2030-2034 9,047,157 2,159,474 11,206,631 2035-2039 9,476,065 1,323,326 10,799,391 2040-2044 7,081,115 420,653 7,501,768 2045-2048 732,201 25,996 758,197 37,758,057 $ 6,922,221 $ 44,680,278 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 36 NOTE 6 – LONG-TERM DEBT (CONTINUED) Changes in long-term liabilities of governmental activities during the year are summarized as follows: Compensated absences are paid from the General Fund in the form of vacation pay. The total OPEB liability and the net pension liability are generally liquidated by the General Fund. NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable as of fiscal year end for the Village’s individual major and nonmajor funds, in the aggregate are as follows: General Fund Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Stormwater Fund Total Payables: Payroll 1,386,068 $ - $ - $ - $ - $ 1,386,068 $ Vendors 564,835 - 243,596 216,644 103,556 1,128,631 Security deposits 664,509 - - - - 664,509 Other 465,084 - - - - 465,084 Total payables 3,080,496 $ - $ 243,596 $ 216,644 $ 103,556 $ 3,644,292 $ NOTE 8 – DEFINED CONTRIBUTION PLAN The Village of Pinecrest 401(a) Money Purchase Plan is a defined contribution plan established by the Village to provide benefits at retirement for its employees. All full-time employees must be a member of the Plan. Plan members are required to contribute 7% of base earnings for the Plan year. The Village is required to contribute 10% of base earnings for each participant for the Plan year. Plan provisions and contribution requirements are established and may be amended by the Village Council. The Plan’s assets are administered by Voya Financial. The Village does not exercise any control over the Plan assets. Village contributions to the Plan were $1,042,628. Employee contributions were $419,784 for the fiscal year ended September 30, 2024. The Village also offers its employees a deferred compensation plan. The Plan, available to all Village employees, permits them to defer a portion of their salary until future years. Participation in the Plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. Benefit provisions and contributions are established and may be amended by the Village Council. During the fiscal year ended September 30, 2024, the Village made no contributions and employees contributed $315,048. Pursuant to the Statement No. 32 of the GASB, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, the Village does not have a fiduciary relationship with the Plan. Accordingly, the balances and transactions of the Village's Plan are not reported in the Village's financial statements. Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities Direct borrowings: Bonds payable 26,403,254 $ 13,375,000 $ (2,020,196) $ 37,758,057 $ 1,924,913 $ Plus: premium on bonds issued - 1,805,545 $ - 1,805,545 285,000 Total OPEB liability 219,903 30,767 - 250,670 11,918 Net pension liability 14,215,724 - (1,116,758) 13,098,966 24,839 Compensated absences 1,649,173 120,356 (36,787) 1,732,742 1,472,832 Total governmental activities 42,488,054 $ 15,331,668 $ (3,173,741) $ 54,645,980 $ 3,719,502 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 37 NOTE 9 – RETIREMENT PLAN Florida Retirement System The Village participates in the Florida Retirement System (FRS), a statewide cost-sharing multiple- employer public employee retirement system (PERS), available to governmental units within the state and administered by the State of Florida Department of Management Services, Division of Retirement. The sworn police personnel are eligible to participate in the FRS. General information As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (“Pension Plan”) and the Retiree Health Insurance Subsidy (“HIS Plan”). The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature. The state of Florida annually 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, by calling (877) 377-1737, or by visiting: www.dms.myflorida.com/workforce_operations/retirement/publications VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 38 NOTE 9 – RETIREMENT PLAN (CONTINUED) Plan description The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (“DROP”) for eligible employees. Benefits provided Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. Special Risk Administrative Support class members who retire at or after age 55 with at 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 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. For Special Risk and Special Risk Administrative Support class members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 60 or 30 years of service regardless of age. Also, the final average compensation for these members will be based on the eight highest years of salary. As provided in

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 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 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 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. 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 3% 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 contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2023 through June 30, 2024, and from July 1, 2024 through September 30, 2024, respectively, were as follows: Regular Class – 10.19% and 11.51%; Senior Management – 26.11% and 30.61%; and DROP participants – 16.94% and 19.13%. These employer contribution rates do not include the 1.66% HIS Plan subsidy for the periods October 1, 2023 through June 30, 2024, and from July 1, 2024 through September 30, 2024, respectively. The Village’s contributions, including employee contributions, to the Pension Plan totaled $1,628,485 for the fiscal year ended September 30, 2024. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions At September 30, 2024, the Village reported a liability of $11,125,116 for its proportionate share of the Pension Plan’s net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023. The Village’s proportion of the net pension liability was based on a projection of the Village’s 2023-2024 fiscal year contributions relative to the 2023-2024 fiscal year contributions of all participating members. At June 30, 2024, the Village’s proportion was 0.0287%, which was a decrease from its proportion measured as of June 30, 2023, of 0.0298%. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 39 NOTE 9 – RETIREMENT PLAN (CONTINUED) Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions (Continued) For the fiscal year ended September 30, 2024, the Village recognized pension expense of $992,053. In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The deferred outflows of resources related to the Pension Plan, totaling $347,529 resulting from Village contributions to FRS subsequent to the measurement date. Contributions made after the measurement date of the net pension liability but before the end of the employer’s or governmental nonemployer contributing entity’s reporting period will be recognized as a reduction of the net pension liability or collecting net pension liability in the subsequent fiscal period rather than in the current fiscal period. 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: Actuarial assumptions The total pension liability in the June 30, 2024, actuarial valuation was determined using the following actuarial assumption, applied to all period included in the measurement: Inflation: 2.40% Salary increases: 3.50%, average, including inflation Investment rate of return: 6.70%, net of pension plan investment expense, including inflation Mortality rates were based on PUB-2010 base tables and varies by member category and sex, projected generationally with Scale MP-2018. Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 1,123,935 $ - $ Change of assumptions 1,524,799 - Net difference between projected and actual earnings on FRS pension plan investments - 739,433 Changes in proportion and differences between Authority FRS contributions and proportionate share of contributions 1,234,046 825,299 Authority FRS contributions subsequent to measurement date 347,529 - Total 4,230,309 $ 1,564,732 $ Fiscal Year End Deferred Outflows/(Inflows), net 2025 (170,609) $ 2026 1,944,143 2027 406,541 2028 55,901 2029 82,072 Total 2,318,048 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 40 NOTE 9 – RETIREMENT PLAN (CONTINUED) Actuarial assumptions (Continued) The actuarial assumptions used in the July 1, 2024, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. The long-term expected rate of return on Pension Plan investments was not based on historical returns, but instead is based on a forward-looking 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 estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Discount rate The discount rate used to measure the total pension liability was 6.70%. 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 calculation the total pension liability is equal to the long-term expected rate of return. Sensitivity of the Village’s proportionate share of the net position liability to changes in the discount rate The following represents the Village’s proportionate share of the net pension liability calculated using the discount rate of 6.70%, as well as what the Village’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate. 1% Current 1% Decrease Discount Rate Increase 5.70% 6.70% 7.70% Authority's proportionate share of the net pension liability 19,568,690 $ 11,125,116 $ 4,051,832 $ Detailed information regarding the Pension Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive Financial Report. Payables to the pension plan At September 30, 2024, the Village reported a payable in the amount of $0 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30, 2024. Asset Class Target Allocation 1 Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 3.3% 3.3% 1.1% Fixed income 29.0% 5.7% 5.6% 3.9% Global equity 45.0% 8.6% 7.0% 18.2% Real estate 12.0% 8.1% 6.8% 16.6% Private equity 11.0% 12.4% 8.8% 28.4% Strategic investments 2.0% 6.6% 6.2% 8.7% 100% Assumed inflation-Mean 2.4% 1.5% Note: (1) As outlined in the Plan's investment policy VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 41 NOTE 9 – RETIREMENT PLAN (CONTINUED) HIS Plan Plan description The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under

363, Florida Statutes, and may be amended by the Florida legislature at any time. 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 Florida Department of Management Services, Division of Retirement. Benefits provided For the fiscal year ended September 30, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a state- administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2023, the HIS contribution for the period October 1, 2023 through September 30, 2024, was 1.66%. The Village contributed 100% of its statutorily required contributions for the current and preceding three years. HIS Plan contribution are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled. The Village’s contributions to the HIS Plan totaled $111,401 for the current year. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions At September 30, 2024, the Village reported a liability of $1,973,849 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2023. The Village’s proportionate share of the net pension liability was based on the Village’s 2021-2024 fiscal year contributions relative to the 2023-2024 fiscal year contributions of all participating members. At June 30, 2024, the Village's proportionate share was 0.0131%, which was a decrease from its proportionate share measured as of June 30, 2023, of 0.0147%. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 42 NOTE 9 – RETIREMENT PLAN (CONTINUED) Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions (Continued) For the fiscal year ended September 30, 2024, the Village recognized pension expense of $80,378. In addition the Village reported deferred outflows of resources and deferred in flows of resources related to pensions from the following sources: The deferred outflows of resources related to the HIS Plan, totaling $23,595 resulting from Village contributions to the HIS Plan subsequent to the measurement date. Contributions made after the measurement date of the net pension liability but before the end of the employer’s or governmental nonemployer contributing entity’s reporting period will be recognized as a reduction of the net pension liability or collecting net pension liability in the subsequent fiscal period rather than in the current fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as follows: The total pension liability in the July 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation: 2.40% Salary increases: 3.50%, average, including inflation Muncipal bond index 3.93% Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2018 tables. The actuarial assumptions used in the July 1, 2024, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 19,059 $ 3,790 $ Change of assumptions 34,932 233,678 Net difference between projected and actual earnings on FRS pension plan investments - 714 Changes in proportion and differences between Authority FRS contributions and proportionate share of contributions 261,062 279,297 Authority FRS contributions subsequent to measurement date 23,595 - 338,648 $ 517,479 $ Fiscal Year End Deferred Outflows/(Inflows), net 2025 (36,402) $ 2026 (31,040) 2027 (44,893) 2028 (26,361) 2029 (45,473) Thereafter (18,257) Total (202,426) $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 43 NOTE 9 – RETIREMENT PLAN (CONTINUED) Discount rate The discount rate used to measure the total pension liability was 3.93%. 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, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the Village’s proportionate share of the net position liability to changes in the discount rate The following represents the Village’s proportionate share of the net pension liability calculated using the discount rate of 3.65%, as well as what the Village’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: 1% Current 1% Decrease Discount Rate Increase 2.93% 3.93% 4.93% Authority's proportionate share of the net pension liability 2,246,973 $ 1,973,849 $ 1,747,111 $ Pension plan fiduciary net position Detailed information regarding the HIS Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive Financial Report. Payables to the pension plan At September 30, 2024, the Village reported a payable in the amount of $0 for outstanding contributions to the HIS Plan required for the fiscal year ended September 30, 2024. Applicable totals for all of the Village’s defined benefit pension plans are reflected below: FRS HIS Total Village's proportionate share of net pension liability 11,125,117 $ 1,973,846 $ 13,098,963 $ Deferred outflows of resources 4,230,309 338,648 4,568,957 Deferred inflows of resources 1,564,732 517,479 2,082,211 Pension expense/expenditure 1,606,751 80,378 1,687,129 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS Description The Village administers a single-employer defined benefit OPEB plan. The purpose of this plan is to account for the implicit rate subsidy the Village provides to its retirees Florida Statutes require that municipalities provide their retirees access to the same health insurance programs as their current employees at the same rates. Since the inclusion of the retirees results in higher overall health insurance costs to the municipality which cannot be passed on to the retirees, it in effect results in what is called the implicit rate subsidy. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. This is the only post-employment benefit the Village provides to its retirees other than its pension plan. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 44 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Description (Continued) Membership in the plan consisted of the following at September 30, 2024: Retirees and beneficiaries currently receiving benefits 1 Active employees 128 Total 129 Separate financial statements for the Village’s OPEB plan are not available. Funds from the General Fund are used to liquidate the total OPEB liability. This actuarial valuation involves estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to constant revision as actual experience is compared with past expectations and new estimates are made about the future. Calculations are based upon the types of benefits provided under the terms of the substantive plan at the time of the valuation and on the pattern of sharing of costs between the employer and plan members to that point. Calculations reflect a long-term prospective, so methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Benefits Provided Retirees and their dependents can continue participating in the group insurance plans offered by the Village, but they are required to contribute 100% of the active premiums. Total OPEB liability of the Village The Village’s total OPEB liability was measured as of September 30, 2023 and was determined by an actuarial valuation as of October 1, 2022, with the actuary using standard techniques to roll forward the liability to the measurement date. Actuarial assumptions The total OPEB liability in the October 1, 2022, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 45 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Discount rate: 4.91% per annum, this rate was used to discount all future benefit payments and is based on the return on the S&P Municipal Bond 20-year High Grade Index as of the measurement date. Salary increases: 3.00% per annum Cost-of-living increases: Retiree contributions, health insurance premiums, and the implied subsidy have been assumed to increase in accordance with the healthcare cost trend rates. Healthcare cost trend rates: Increases in healthcare costs are assumed to be 7.00% for the 2022/23 fiscal year graded down by 0.50% per year to 5.00% for the 2026/27 and later fiscal years. Age-related morbidity: Healthcare costs are assumed to increase at the rate of 3.50% for each year of age. Implied subsidy: Because the insurance carrier charges the same monthly rate for health insurance regardless of age, an implied monthly subsidy of $700.00 has been assumed at age 65 for the 2022/23 fiscal year; at other ages, the implied subsidy was developed based on the age-related morbidity assumption and, for other fiscal years, the implied subsidy was increased in accordance with the healthcare cost trend rates. Mortality basis: Sex-distinct rates set forth in the PUB-2010 Mortality Table (without income adjustments) for general and public safety employees, with full generational improvements in mortality using Scale MP-2020 Retirement: Retirement is assumed to occur at age 55 for police officers and at age 60 for general employees. Other decrements: Assumed employment termination is based on the Scale 155 table; assumed disability is based on the Wyatt 1985 Disability Study (Class 1 rates are used for general employees and Class 4 rates are used for police officers). Coverage election: 10% of eligible employees are assumed to elect single coverage at retirement under the high-deductible plan; health coverage is assumed to end upon the attainment of age 65. COBRA: Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation, because the COBRA premium is determined periodically based on plan experience, the COBRA premium to be paid by the participant is assumed to fully cover the cost of providing healthcare coverage during the relevant period. Changes: Since the prior measurement date, the discount rate was increased from 4.77% per annum to 4.91% per annum and the implied monthly subsidy at age 65 for the 2022/23 fiscal year was increased from $645.00 to $700.00. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 46 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Discount rate Given the Village’s decision not to fund the program, all future benefit payments were discounted using a municipal bond rate of 4.91%. Changes in the total OPEB liability for the Village for the year ended September 30, 2024, were as follows: Total OPEB Liability Balance at September 30, 2023 219,903 $ Changes for the year: Service cost 15,115 Expected interest growth - Demographic experience 8,791 Benefit payments and refunds 6,861 Assumption changes - Net changes 30,767 Balance at September 30, 2024 250,670 $ There were no significant changes in assumptions since the prior measurement date. The required schedule of changes in the Village’s total OPEB liability and related ratios immediately following the notes to the financial statements presents multi-year trend information about the total OPEB liability. Sensitivity of the total OPEB liability to changes in the discount rate The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.77%) or 1-percentage-point higher (5.77%) than the current discount rate: 1% Decrease Rate Assumption 1% Increase (3.77%) (4.77%) (5.77%) Total OPEB liability 242,400 $ 219,903 $ 200,113 $ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates: 1% Trend Decrease Healthcare Cost Trend Rate Assumption (7.50% graded down to 5.00%) 1% Trend Increase Total OPEB liability 220,847 $ 250,670 $ 287,189 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 47 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates (Continued) Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revisions as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long- term perspective. Calculations are based on the substantive plan in effect as of September 30, 2024, and the current sharing pattern of costs between employer and inactive employees. OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB For the year ended September 30, 2024, the Village recognized OPEB expense of $30,767. At September 30, 2024, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 25,528 $ 86,365 $ Change of assumptions 34,503 64,380 Village contributions subsequent to the measurement date 11,918 - Totals 71,949 $ 150,745 $ The deferred outflows of resources related to the OPEB Plan, totaling $8,493 resulting from Village contributions to the plan subsequent to the measurement date. Contributions made after the measurement date of the OPEB liability but before the end of the employer’s or governmental nonemployer contributing entity’s reporting period will be recognized as a reduction of the OPEB or collecting OPEB in the subsequent fiscal period rather than in the current fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the OPEB Plan will be recognized in OPEB expense as follows: Fiscal Year Ending September 30: Amount 2025 $ 8,493 2026 8,493 2027 8,493 2028 8,493 2029 8,493 Thereafter 14,950 VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 48 NOTE 11 – COMMITMENTS AND CONTINGENCIES Risk management The Village is exposed to various risks of loss related to torts, theft of or damage to and destruction of assets, errors and omissions, injuries to employees, and natural disasters for which the Village carries insurance through the Florida League of Cities. There were no significant reductions in insurance coverage from the coverage in the prior year. There were no settled claims that have exceeded insurance coverage for each of the past three years. Litigation The Village is a defendant in various lawsuits incidental to its operations. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the Village’s management and legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the Village. Contingent liabilities Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. In the opinion of management, future disallowances of grant expenditures, if any, would not have a material adverse effect on the Village’s financial condition. Interlocal agreements On June 17, 1997, the Village entered into an interlocal agreement with Miami-Dade County to pass through the Village’s share of the franchise fee on electricity collected by Florida Power and Light. Under this agreement, the County remitted $2,009,104 to the Village for the fiscal year ending September 30, 2024. This agreement will be in effect as long as the ordinance establishing the collection of these fees is in place. On July 17, 2003, the Village entered into another interlocal agreement with Miami-Dade County. Under this agreement, the County remitted $1,149,928 to the Village for the fiscal year ending September 30, 2024, for the purpose of providing transportation services within the Village. This agreement shall remain in effect as long as the County receives net proceeds from the ½ cent County Transit System Surtax as authorized by Miami-Dade County Ordinance No. 02-116 pursuant to the authority of

055(1), Florida Statutes 2002. Construction commitments and budget carryovers There are several ongoing projects and equipment purchases in the various funds of the Village at fiscal year- end. The outstanding commitments and budget carryovers are as follows: General Fund: Municipal Center Exterior Painting 79,675 $ Workstations 65,975 Covid tests 7,475 Therapy K9 Vehicle Transport System 7,700 eCitation Program 31,500 UrbanSDK Speed Data Platform 12,500 Traffic Safety Cones 2,400 Cloud-Based CAD System Upgrade 217,000 Community Service Aide Academy 2,525 Vehilce printers 28,000 Patrol Vehicle 55,000 Workstations for Admin Area & File Cabinets 15,500 FPL Lease Agreement 10,410 PW Fleet Vehicles 47,920 SP Boundary Survey 45,000 Total General Fund Carryovers 628,580 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 49 NOTE 11 – COMMITMENTS AND CONTINGENCIES (CONTINUED) Stormwater Fund: Stormwater Improvements for SubBasin U35-S 91,770 $ Drainage SubBasin U29-East 104,600 Drainage Improvements U29-West 53,410 Residential Drainage Improvements 3 locations 48,825 Drainage Improvements C100A W3N Phase 3 83,315 Drainage Improvements Phase 2 34,710 Drainage Improvements Phase 1 22,250 Drainage Improvments C100 W3N Phase 2 68,570 Resurfacing Works at SW 135th Terr & 58th Ct 45,540 QA/QC Services for Misc Drainage Plans 15,750 Drainage Improvements C100A W3N Phase 1 139,560 Basin C100 A-E-2 Drainage Improvements 90,640 Categorical Exclusion New Lateral Lines for WS 3,000 Total Stormwater Fund Carryovers 801,940 $ Transporation Fund: SW 104th St & Sw 77th Ave 5,560 $ Cultural Resources Assesment (Kendall Drive) 21,810 Wayside Fruit & Veg. Market Engineering Opinion 2,210 Traffic Study SW 72nd Ave SW 96th St 1,135 Linear Park for Pedestrians/Bicyclists & Safety 25,575 Design Plans SW 88th St and SW 67th Ave 22,705 SW 112th St and US1 Intersection Imprv. 27,390 Traffic Study SW 65th St at SW 123rd St Sw 123rd Ter Sw 126 7,830 RRFB Pedestrian Signal SW 60th Ave and 120th ST 41,040 Sidewalk Installation 94th St to 88th St on 57th Ave 58,575 Pavement Condition Survey 11,140 Fire Access Road Connection PW and CC 11,830 Wayside Market Pedestrian Crossing Evaluation 9,900 Resurfacing Works at SW 115th Ter and SW 72nd Ave 17,290 Lighting Upgrade 136th Roundabout 66,840 Total Transportation Fund Carryovers 330,830 $ Impact Fee Fund: Omega Plate 6,780 $ Total Impact Fee Fund Carryovers 6,780 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2024 50 NOTE 12 – SUBSEQUENT EVENTS March 2025, the Village will issue the Florida Municipal Loan Council Revenue Bonds, Series 2025 in the amount of $16,000,000 for the purchase of construction, acquisition, renovation, and equipping of certain capital improvements. REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Taxes: Ad valorem taxes 15,379,352 $ 15,379,352 $ 15,488,266 $ 108,914 $ Franchise taxes 2,120,205 2,120,205 2,175,848 55,643 Utility taxes 2,940,525 2,940,525 3,172,231 231,706 Communication service tax 989,595 989,595 984,872 (4,723) Business tax 135,000 135,000 116,059 (18,941) Licenses and permits 4,168,000 4,168,000 3,294,467 (873,533) Intergovernmental 2,824,445 2,824,445 2,912,026 87,581 Charges for services 5,214,835 5,214,835 5,878,896 664,061 Fines and forfeitures 1,465,000 1,465,000 1,677,393 212,393 Investment earnings 325,000 325,000 952,032 627,032 Miscellaneous 142,500 142,500 142,773 273 Total revenues 35,704,457 35,704,457 36,794,863 1,090,406 EXPENDITURES Current: General government: Village council 189,760 $ 242,390 $ 227,879 $ 14,511 $ Village manager 1,039,050 1,055,907 1,050,873 5,034 Village clerk 358,050 371,881 371,784 97 Finance department 473,205 483,825 480,044 3,781 Village attorney 695,000 695,000 586,690 108,310 General government 2,624,915 2,624,915 2,341,036 283,879 Information technology 655,965 802,950 756,215 46,735 Total general government 6,035,945 6,276,868 5,814,521 462,347 Public safety - police 12,645,720 12,813,737 12,457,108 356,629 Building, planning and zoning 3,756,610 3,779,096 3,589,515 189,581 Public works 1,101,695 1,101,695 1,043,347 58,348 Parks and recreation 7,450,080 7,741,281 7,564,601 176,680 Total expenditures 30,990,050 31,712,677 30,469,092 1,243,585 Excess (deficiency) of revenues over expenditures before other financing sources (uses) 4,714,407 3,991,780 6,325,771 (153,179) OTHER FINANCING SOURCES (USES) Transfers out (4,873,620) (5,169,220) (4,768,409) (400,811) Appropriation of fund balance (23,287) 994,940 - 994,940 Total other financing sources (uses) (4,896,907) (4,174,280) (5,168,409) 994,129 Net change in fund balances (182,500) (182,500) 1,157,362 840,950 Fund balances - beginning 11,429,609 Fund balances - ending 12,586,971 $ Budgeted Amounts VILLAGE OF PINECREST, FLORIDA Variance with Final Budget - Positive (Negative) Actual Amounts 51 VILLAGE OF PINECREST, FLORIDA NOTE TO BUDGETARY COMPARISON SCHEDULES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 52 NOTE 1 – BUDGETS AND BUDGETARY ACCOUNTING An annual appropriated budget is adopted for all of the governmental funds on a basis consistent with accounting principles generally accepted in the United States. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: a. The Village Manager submits to the Council a proposed operating and capital budget for the ensuing year. The budget includes proposed expenditures and means of financing them. b. Public hearings are conducted to obtain taxpayer comments. c. Prior to October 1, the budget is legally enacted through the passage of a budget ordinance. d. The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. There were supplemental appropriations in the General Fund for an additional $2,116,822 during the fiscal year ended September 30, 2024. e. Formal budgetary integration is employed as a management control devise during the year for all of the funds. f. The Village Manager is authorized to transfer part of, all or an unencumbered appropriation within a department within a fund; however, any revisions that alter the total appropriations of any department or fund must be approved by the Village Council. The Departments are General Government, Police, BPZ (Building, Planning and Zoning), Public Works, and Parks and Recreation. The classification detail at which expenditures may not legally exceed appropriations is at the department level. g. Unencumbered appropriations lapse at fiscal year-end. Unencumbered amounts are reappropriated in the following year’s budget. Budgeted amounts are as originally adopted or as amended. Individual type amendments are not material in relation to the original appropriations. 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Village's proportion of the net pension liability (asset) 0.028758438% 0.029800662% 0.022822% 0.024375% 0.027684% 0.027808% 0.031705% 0.032074% 0.031173% 0.027937% Village's proportionate share of the net pension liability (asset) 11,125,117 $ 11,874,621 $ 8,491,757 $ 1,841,231 $ 11,998,695 $ 9,576,699 $ 9,549,770 $ 9,487,370 $ 7,871,188 $ 3,608,378 $ Village's covered payroll 4,340,297 $ 4,400,711 $ 4,306,648 $ 4,310,385 $ 12,131,118 $ 11,017,488 $ 10,414,656 $ 10,026,993 $ 9,129,495 $ 7,828,489 $ Village's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 256.32% 269.83% 197.18% 42.72% 276.64% 217.12% 193.99% 190.46% 176.53% 80.99% FRS plan fiduciary net position as a percentage of the total pension liability 83.70% 82.38% 82.89% 96.40% 78.85% 82.61% 84.26% 83.69% 84.88% 92.00% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM PENSION PLAN (FRS) SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 53 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution 1,628,485 $ 1,433,604 $ 973,872 $ 928,571 $ 919,820 $ 862,250 $ 903,573 $ 834,974 $ 834,553 $ 703,668 $ Contributions in relation to the contractually required contribution (1,628,485) (1,433,604) (973,872) (928,571) (2,653,326) (2,389,761) (2,204,195) (2,082,376) (1,817,153) (1,454,377) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Village's covered payroll 5,519,723 $ 5,629,100 $ 4,306,648 $ 4,310,385 $ 3,963,213 $ 4,011,802 $ 3,977,497 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ Contributions as a percentage of covered payroll 29.50% 25.47% 22.61% 21.54% 23.21% 21.49% 22.72% 20.21% 18.88% 18.88% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM PENSION PLAN SCHEDULE OF THE VILLAGE'S CONTRIBUTIONS 54 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Village's proportion of the net pension liability (asset) 0.0131581% 0.0147412% 0.0116294% 0.0120480% 0.01158900% 0.01195700% 0.01313600% 0.01269700% 0.01221600% 0.01216400% Village's proportionate share of the net pension liability (asset) 1,973,846 $ 2,341,101 $ 1,231,742 $ 1,477,873 $ 1,414,972 $ 1,337,908 $ 1,390,295 $ 1,357,598 $ 1,423,708 $ 1,240,524 $ Village's covered payroll 4,006,278 $ 4,066,761 $ 3,959,471 $ 4,049,302 $ 3,963,213 $ 4,011,802 $ 3,977,497 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ Village's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 49.27% 57.57% 31.11% 36.50% 35.91% 33.46% 32.41% 32.28% 37.76% 33.74% Plan fiduciary net position as a percentage of the total pension liability 4.80% 4.12% 4.81% 3.56% 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY SYSTEM PENSION PLAN (HIS) SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 55 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution 111,401 $ 96,970 $ 70,368 $ 70,818 $ 66,781 $ 66,398 $ 71,235 $ 67,195 $ 48,773 $ 43,532 $ Contributions in relation to the contractually required contribution (111,401) (96,970) (70,368) (375,790) (201,377) (193,764) (172,883) (172,063) (143,366) (125,885) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Village's covered payroll 5,094,681 $ 5,198,620 $ 3,959,471 $ 4,049,302 $ 3,920,088 $ 3,888,592 $ 3,863,023 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ Contributions as a percentage of covered payroll 2.19% 1.87% 1.78% 1.75% 1.70% 1.71% 1.84% 1.63% 1.10% 1.17% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY PENSION PLAN (HIS) SCHEDULE OF THE VILLAGE'S CONTRIBUTIONS 56 Total OPEB Liability: 2024 2023 2022 2021 2020 2019 2018 Service cost 15,115 $ 18,392 $ 24,195 $ 25,501 $ 25,752 $ 17,496 $ 24,009 $ Interest - 12,138 7,205 6,926 8,898 8,400 6,051 Changes of benefit terms - - - - - 55,678 - Differences between expected and actual experience of the Total OPEB Liability - (37,499) (52,115) (24,308) (8,545) - - Changes in assumptions 8,791 (4,603) (6,758) (21,825) 64,444 (59,606) - Benefit payments 6,861 (9,074) (8,535) (15,695) (14,644) (10,268) (7,548) Net Change in total OPEB liability 30,767 (20,646) (36,008) (29,401) 75,905 11,700 22,512 Total OPEB liability- beginning 219,903 240,549 276,557 305,958 230,053 218,353 195,841 Total OPEB liability- ending 250,670 $ 219,903 $ 240,549 $ 276,557 $ 305,958 $ 230,053 $ 218,353 $ Covered-employee payroll 10,091,675 $ 9,276,195 $ 8,836,086 $ 8,605,208 $ 9,205,450 $ 7,885,136 $ 6,991,252 $ Total OPEB liability as a percentage of covered-employee payroll 2.48% 2.37% 2.72% 3.21% 3.32% 2.92% 3.12% Note: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS - SEPTEMBER 30, 2024 OTHER POST EMPLOYMENT BENEFITS (OPEB) 57 SUPPLEMENTARY INFORMATION VILLAGE OF PINECREST, FLORIDA COMBINING BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 Transportation Police Education Hardwire Wireless CITT Public Prepaid 911 Impact Fees Fund Fund Fund Fund Trust Fund Fund Fund Subtotal ASSETS Cash and cash equivalents 460,708 $ 28,356 $ 8,183 $ 1 $ 1,673,626 $ 2,750 $ 802,643 $ 2,976,267 $ Accounts receivable, net 41,004 203 2,470 2,199 275,630 2,774 - 324,280 Total assets 501,712 $ 28,559 $ 10,653 $ 2,200 $ 1,949,256 $ 5,524 $ 802,643 $ 3,300,547 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 169,995 $ - $ 2 $ 4 $ 46,128 $ 2 $ 513 $ 216,644 Total liabilities 169,995 - 2 4 46,128 2 513 216,644 Fund balances: Restricted for: Transportation 331,717 - - - 1,903,128 - - 2,234,845 Public safety - 28,559 10,651 2,196 - 5,522 6,780 53,708 General government - - - - - - 795,350 795,350 Total fund balances 331,717 28,559 10,651 2,196 1,903,128 5,522 802,130 3,083,903 Total liabilities and fund balances 501,712 $ 28,559 $ 10,653 $ 2,200 $ 1,949,256 $ 5,524 $ 802,643 $ 3,300,547 $ Special Revenue Funds 58 VILLAGE OF PINECREST, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Special Revenue Funds Transportation Police Education Hardwire Wireless CITT Public Prepaid 911 Impact Fees Fund Fund Fund Fund Transit Fund Fund Fund Subtotal REVENUES Taxes 457,490 $ - $ - $ - $ - $ - $ - $ 457,490 $ Licenses and permits - - - - - - 326,399 326,399 Intergovernmental - - 7,866 13,854 1,190,421 8,614 - 1,220,755 Fines and forfeitures - 6,490 - - - - - 6,490 Investment earnings 29,632 1,225 718 1,084 73,600 458 32,295 139,012 Miscellaneous - - - - - - - - Total revenues 487,122 7,715 8,584 14,938 1,264,021 9,072 358,694 2,150,146 EXPENDITURES Current: Public safety - (721) 35,994 99,696 - 36,167 - 171,136 Public works 530,754 - - - 619,163 - - 1,149,917 Capital outlay 506,954 - - - 250,537 - 71,073 828,564 Total expenditures 1,037,708 (721) 35,994 99,696 869,700 36,167 71,073 2,149,617 Excess (deficiency) of revenues over expenditures (550,586) 8,436 (27,410) (84,758) 394,321 (27,095) 287,621 529 OTHER FINANCING SOURCES Transfers in 590,000 - 24,000 61,600 190,000 23,000 - 888,600 Total other financing sources 590,000 - 24,000 61,600 190,000 23,000 - 888,600 Net change in fund balances 39,414 8,436 (3,410) (23,158) 584,321 (4,095) 287,621 889,129 Fund balances - beginning 292,303 20,123 14,061 25,354 1,318,807 9,617 514,509 2,194,774 Fund balances - ending 331,717 $ 28,559 $ 10,651 $ 2,196 $ 1,903,128 $ 5,522 $ 802,130 $ 3,083,903 $ 59 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Transportation taxes 488,055 $ 488,055 $ 457,490 $ (30,565) $ Intergovernmental revenues 60,000 60,000 - (60,000) Investment earnings 500 500 29,632 29,132 Total revenues 548,555 548,555 487,122 (61,433) EXPENDITURES Current: Public works 691,730 728,477 530,754 197,723 Capital outlay 569,000 824,555 506,954 317,601 Total expenditures 1,260,730 1,553,032 1,037,708 515,324 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (712,175) (1,004,477) (550,586) 453,891 OTHER FINANCING SOURCES (USES) Transfers in 590,000 590,000 590,000 - Total other financing sources and uses 590,000 590,000 590,000 - Net change in fund balance 39,414 Fund balances - beginning 292,303 Fund balances - ending 331,717 $ Budgeted Amounts Variance with Final Budget - Positive (Negative) Actual Amounts SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRANSPORTATION FUND 60 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Fines and forfeitures 2,000 $ 2,000 $ 6,490 $ 4,490 $ Interest income 50 50 1,225 1,175 Total revenues 2,050 2,050 7,715 5,665 EXPENDITURES Current: Public safety 14,175 14,175 (721) 14,896 Total expenditures 14,175 14,175 (721) 14,896 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (12,125) (12,125) 8,436 20,561 Net change in fund balance 8,436 Fund balances - beginning 20,123 Fund balances - ending 28,559 $ Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL POLICE EDUCATION FUND 61 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Intergovernmental 6,104 6,104 7,866 1,762 Investment earnings 200 200 718 518 Total revenues 6,304 6,304 8,584 4,042 EXPENDITURES Current: Public safety 37,340 37,340 35,994 1,346 Total expenditures 37,340 37,340 35,994 1,346 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (31,036) (31,036) (27,410) 5,388 OTHER FINANCING SOURCES (USES) Transfers in 24,000 24,000 24,000 - Total other financing sources and uses 24,000 24,000 24,000 - Net change in fund balance (3,410) Fund balances - beginning 14,061 Fund balances - ending 10,651 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HARDWIRE FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 62 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Intergovernmental 19,875 19,875 13,854 (6,021) Investment earnings 500 500 1,084 584 Total revenues 20,375 20,375 14,938 (11,458) EXPENDITURES Current: Public safety 103,445 103,445 99,696 3,749 Total expenditures 103,445 103,445 99,696 3,749 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (83,070) (83,070) (84,758) (7,709) OTHER FINANCING SOURCES (USES) Transfers in 60,000 60,000 61,600 (1,600) Total other financing sources and uses 60,000 60,000 61,600 (1,600) Net change in fund balance (23,158) Fund balances - beginning 25,354 Fund balances - ending 2,196 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WIRELESS FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 63 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Intergovernmental 1,230,328 1,230,328 1,190,421 (39,907) Interest income 1,000 1,000 73,600 72,600 Total revenues 1,231,328 1,231,328 1,264,021 (7,214) EXPENDITURES Current: Public works 814,745 814,745 619,163 195,582 Capital outlay 620,000 620,000 250,537 369,463 Total expenditures 1,434,745 1,434,745 869,700 565,045 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (203,417) (203,417) 394,321 557,831 OTHER FINANCING SOURCES (USES) Transfers in 190,000 190,000 190,000 - Total other financing sources and uses 190,000 190,000 190,000 - Net change in fund balance 584,321 Fund balances - beginning 1,318,807 Fund balances - ending 1,903,128 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CITT PUBLIC TRANSIT FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 64 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Intergovernmental 7,050 $ 7,050 $ 8,614 $ 1,564 $ Interest income 200 200 458 258 Total revenues 7,250 7,250 9,072 1,822 EXPENDITURES Current: Public safety 37,585 37,585 36,167 1,418 Total expenditures 37,585 37,585 36,167 1,418 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (30,335) (30,335) (27,095) 3,240 OTHER FINANCING SOURCES (USES) Transfers in 23,000 23,000 23,000 - Total other financing sources and uses 23,000 23,000 23,000 - Net change in fund balance (4,095) Fund balances - beginning 9,617 Fund balances - ending 5,522 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PREPAID 911 FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 65 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Licenses and permits 227,500 $ 227,500 $ 326,399 $ 98,899 $ Investment earnings 10,000 10,000 32,295 22,295 Total revenues 237,500 237,500 358,694 121,194 EXPENDITURES Capital outlay 227,500 247,955 71,073 176,882 Total expenditures 227,500 247,955 71,073 176,882 Excess (deficiency) of revenues over expenditures before other financing sources (uses) 10,000 (10,455) 287,621 298,076 Net change in fund balance 287,621 Fund balances - beginning 514,509 Fund balances - ending 802,130 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL IMPACT FEES FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 66 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Special assessments revenue - $ - $ 223,163 $ 223,163 $ Investment earnings 1,000 1,000 26,935 25,935 Total revenues 1,000 1,000 250,098 22,493 EXPENDITURES Debt Service: Principal 2,855,935 2,855,935 2,020,196 835,739 Interest and other charges 741,860 741,860 1,194,356 (452,496) Total expenditures 3,597,795 3,597,795 3,214,552 383,243 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (3,596,795) (3,596,795) (2,964,454) 405,736 OTHER FINANCING SOURCES (USES) Transfers in 3,388,265 3,388,265 3,235,144 153,121 Total other financing sources and uses 3,388,265 3,388,265 3,235,144 153,121 Net change in fund balance 270,690 Fund balances - beginning 461,374 Fund balances - ending 732,064 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL BOND DEBT SERVICE FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 67 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 Original Final REVENUES Intergovernmental 640,000 $ 640,000 $ 124,999 $ (515,001) $ Grants, contributions and donations - - - - Interest income 200,000 200,000 565,399 365,399 Total revenues 840,000 840,000 690,398 (149,602) EXPENDITURES Debt Service: Interest and other charges 150,000 180,540 180,543 (3) Capital outlay 16,088,355 27,805,315 13,551,973 14,253,342 Total expenditures 16,238,355 27,985,855 13,732,516 14,253,339 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (15,398,355) (27,145,855) (13,042,118) 14,103,737 OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net 15,000,000 15,000,000 15,180,543 (180,543) Transfers in 598,355 598,355 1,044,665 (446,310) Total other financing sources and uses 15,598,355 15,598,355 16,225,208 (626,853) Net change in fund balance 3,183,090 Fund balances - beginning 9,475,454 Fund balances - ending 12,658,544 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL IMPROVEMENTS PROJECTS FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 68 67$7,67,&$/ SECTION Table 1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Governmental activities: Net investment in capital assets 82,757 80,888 78,157 77,087 77,663 74,033 74,152 74,152 80,554 64,354 Restricted 5,597 5,787 4,892 3,767 4,014 1,054 909 6,573 1,709 2,288 Unrestricted 1,933 244 (293) (2,867) (4,146) (4,007) (2,995) 3,860 5,268 7,428 Total governmental activities net position 90,287 86,919 82,756 77,987 77,531 71,080 72,066 84,585 87,531 74,070 Business-type activities: Net investment in capital assets 5,842 6,335 6,782 7,266 7,734 7,795 7,826 7,800 9,261 9,986 Restricted Unrestricted 543 355 603 868 1,165 1,864 2,238 2,776 2,391 2,448 Total business-type activities net position 6,385 6,690 7,385 8,134 8,899 9,659 10,064 10,576 11,652 12,434 Primary government: Net investment in capital assets 88,599 87,223 84,939 84,353 85,397 81,828 81,978 81,952 89,815 74,340 Restricted 5,597 5,787 4,892 3,767 4,014 1,054 909 6,573 1,709 2,288 Unrestricted 2,476 599 310 (1,999) (2,981) (2,143) (757) 6,636 7,659 9,876 Total primary government net position 96,672 93,609 90,141 86,121 86,430 80,739 82,130 95,161 99,183 86,504 VILLAGE OF PINECREST, FLORIDA NET POSITION BY COMPONENT (ACCRUAL BASIS OF ACCOUNTING) AMOUNTS EXPRESSED IN THOUSANDS 69 Table 2 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenses: Governmental activities: General government 3,593 3,659 3,755 3,779 3,983 4,370 4,423 5,144 5,745 5,658 Public Safety 7,310 9,090 10,306 12,381 10,597 11,311 9,635 11,242 13,058 13,285 Building and Planning 1,918 2,019 2,040 2,026 2,240 2,430 2,637 3,137 3,331 3,651 Parks and recreation 4,950 5,015 5,300 5,445 5,656 6,102 6,258 7,694 8,629 7,638 Public Works 5,919 6,099 6,147 6,355 6,620 6,957 6,339 6,770 7,146 9,406 Interest on long-term debt 419 396 397 277 341 250 486 517 677 1,374 Total governmental activities 24,109 26,278 27,945 30,263 29,437 31,420 29,778 34,504 38,586 41,012 Business-type activities Stormwater 841 666 566 729 603 456 839 771 1,010 1,668 Total business-type activities 841 666 566 729 603 456 839 771 1,010 1,668 Total primary government 24,950 26,944 28,511 30,992 30,040 31,876 30,617 35,275 39,596 42,680 Program Revenues: Governmental activities: Charges for services: General government 122 142 186 287 359 209 448 345 650 960 Public Safety 444 662 3,946 3,822 4,974 3,840 4,835 7,666 5,321 5,196 Building and Planning 2,854 2,960 - - - - - - - - Parks and recreation 1,707 1,886 1,700 1,895 2,420 1,642 2,502 3,931 4,595 4,719 Public Works 261 286 8 8 8 8 8 8 8 8 Operating grants and contributions 279 274 620 636 2,487 397 2,203 1,074 209 102 Capital grants and contributions 690 774 934 306 465 543 674 12,274 5,891 2,045 Total governmental activities program revenues 6,357 6,984 7,394 6,954 10,713 6,639 10,670 25,298 16,674 13,030 Business type activities: Charges for services: Stormwater system 676 969 1,257 1,320 1,333 1,202 1,241 1,255 1,267 1,179 Operating grants and contributions - - - - - - - - 616 - Capital grants and contributions - - - 150 - - - - - - Total business-type activities program revenues 676 969 1,257 1,470 1,333 1,202 1,241 1,255 1,883 1,179 Total primary government program revenues 7,033 7,953 8,651 8,424 12,046 7,841 11,911 26,553 18,557 14,209 Net (expense)/revenue Governmental activities (17,752) (19,294) (20,551) (23,309) (18,724) (24,781) (19,108) (9,206) (21,912)