4. A resolution of the village of pinecrest, florida, accepting the auditor’s comprehensive annual…

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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 departments 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 standards of professionalism in the management of the Village of Pinecrest’s finances. Marie Arteaga-Nariño Finance Director 1- 56 D D D D -11 + D 5 + :D 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, 2020 Executive Director/CEO v YL Joseph M. Corradino Mayor jcorradino@pinecrest-fl.gov Term Ends 11/2026 Katie Abbott Councilmember - At-Large kabbott@pinecrest-fl.gov Term Ends 11/2022 Yocelyn Galiano, ICMA-CM Village Manager manager@pinecrest-fl.gov Serves at the Pleasure of the Village Council Guido H. Inguanzo, Jr., CMC 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 Doug Kraft Vice Mayor - Seat 2 dkraft@pinecrest-fl.gov Term Ends 11/2022 Anna Hochkammer Councilmember - Seat 1 ahochkammer@pinecrest-fl.gov Term Ends 11/2024 2020-2021 Village Council and Charter Officers Shannon del Prado Councilmember - Seat 3 sdelprado@pinecrest-fl.gov Term Ends 11/2024 vii FINANCIAL SECTION 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 Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Pinecrest, Florida (the “Village”) as of and for the fiscal year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village, as of September 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. 2 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedules of the Village’s Proportionate Share of Net Pension Liabilities and Contributions, and the Schedule of Changes in the Village’s Total OPEB Liability and Related Ratios on pages 3–11 and 45–53 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 2, 2022, 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 the Village’s internal control over financial reporting and compliance. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida March 2, 2022 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 3 As management of the Village of Pinecrest, Florida (the “Village”), we offer the Village’s financial statements in this narrative overview and analysis of the financial activities of the Village for the fiscal year ended September 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. This was our second year operating under the Coronavirus (COVID-19) pandemic. Business as usual ceased to exist as we adapted to the new reality. Programs and funding sources were reduced and while spending was cut in areas such as travel and office supplies, many vendor contracts could not be paused or cancelled. The Village also had to undertake many steps to protect lives from the threat of the virus, which resulted in unbudgeted expenditures. This was coupled with increased demand for materials and price pressures. Despite the challenges the pandemic presented, the Village managed to maintain excellent stability. Financial Highlights x The assets and deferred outflows of resources of the Village exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $82,129,880 (net position). x The Village’s total net position increased by $1,109,261. While liabilities remained relatively consistent, the cash and cash equivalents grew by almost $7 million. This was due to two debt issuances used for debt repayment and capital asset purchases. As well as revenues exceeding expenses by about $1 Million. x At the close of the current fiscal year, the Village’s government funds reported combined ending fund balances of $13,818,512, an increase of $5,677,294 in comparison with the prior year. Approximately 52.2% of this total amount, $7,216,677 is available for spending at the government’s discretion (Unassigned Fund balance). The financial position of the Village has increased, and the overall financial position continues to be excellent. The increase is attributable to the cash and equivalent balances growth mainly due to the debt issuance and COVID-19 funds received as well as a catch up of the prior year of COVID-19 related expenses. x At the end of the current fiscal year, the Unassigned Fund balance for the General Fund was $7,216,677 or 28.4% of the total General Fund expenditures and transfers. x The Village total bonded and bank debt increased by $10,602,372 or 116.7% during the current fiscal year. The Village had two debt issuances. One in the amount of $7,921,446 which included the purchase of a land for a passive park, Gary Matzner Park, and capital purchases and improvements, and a second for $5,750,526 which included a loan payoff to take advantage of lower interest rates and further capital purchases and improvements. x The Village received federal funding from the Cares Act of $827,130 and has a receivable of $213,396 for expended COVID-19 related expenditures. The Village also has a receivable of $99,325 for COVID- 19 Related expenditures from the Federal Emergency Management Agency (FEMA). The FEMA Hurricane Irma receivable is now at $65,911 due to receipt of $120,556 in the current year. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Village’s basic financial statements. The Village’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’s finances in a manner similar to a private-sector business. The statement of net position presents information on all of the Village’s assets, liabilities, and deferred inflows/outflows 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 is improving or deteriorating. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 4 Overview of the Financial Statements (Continued) 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 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. 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, 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 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 maintains eleven (11) 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 Public Transit, Capital Projects, six (6) non-major Special Revenue funds and a Debt Service Fund. Only the General Fund, Transportation Fund, CITT Public Transit Fund and Capital Projects Fund 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 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 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 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. 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, 2021 5 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, assets and deferred outflow of resources exceeded liabilities by $82,129,880 at the close of the most recent fiscal year. By far the largest portion of the Village’s net position $81,977,478 or 99.8% 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 uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the Village’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources because the capital assets themselves cannot be used to liquidate these liabilities. 2020 2021 2020 2021 2020 2021 Current and other assets 10,001,851 $ 16,809,506 $ 2,191,680 $ 2,549,542 $ 12,193,531 $ 19,359,048 $ Capital assets 83,151,654 87,493,825 7,794,676 7,825,445 90,946,330 95,319,270 Total assets 93,153,505 104,303,331 9,986,356 10,374,987 103,139,861 114,678,318 Deferred outflows of resources 4,146,560 8,556,144 - - 4,146,560 8,556,144 Current and other liabilities 1,638,364 4,596,240 328,076 311,344 1,966,440 4,907,584 Long term bond or bank debt 23,431,317 21,917,840 - - 23,431,317 21,917,840 Total liabilities 25,069,681 26,514,080 328,076 311,344 25,397,757 26,825,424 Deferred inflows of resources 875,941 14,279,158 - - 875,941 14,279,158 Net investment in capital assets 74,069,654 74,152,033 7,794,676 7,825,445 81,864,330 81,977,478 Restricted 1,055,112 5,535,866 - - 1,055,112 5,535,866 Unrestricted (3,770,323) (7,621,662) 1,863,604 2,238,198 (1,906,719) (5,383,464) Total net position 71,354,443 $ 72,066,237 $ 9,658,280 $ 10,063,643 $ 81,012,723 $ 82,129,880 $ Governmental Activities Business-type Activities Total (This section was intentionally left blank) VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 6 Government-wide Financial Analysis (Continued) Governmental activities. Governmental activities increased the Village’s net position by $1,117,157, including $7,896 for a prior period adjustment discussed in Note 12. Key elements in the changes in net position activity are as follows: 2020 2021 2020 2021 2020 2021 Revenues: Program revenues: Charges for services 5,698,783 $ 7,793,829 $ 1,202,069 $ 1,241,362 $ 6,900,852 $ 9,035,191 $ Operating grants and contributions 633,533 2,202,645 - - 633,533 2,202,645 Capital grants and contributions 542,584 673,895 - - 542,584 673,895 General revenues: Taxes 16,268,368 17,419,962 - - 16,268,368 17,419,962 Other 2,063,841 2,391,729 13,600 2,807 2,077,441 2,394,536 Total Revenues 25,207,109 30,482,060 1,215,669 1,244,169 26,422,778 31,726,229 Operating expenses: General government 4,370,432 4,423,341 - - 4,370,432 4,423,341 Public safety 11,310,631 9,635,511 - - 11,310,631 9,635,511 Building, planning and zoning 2,430,228 2,636,675 - - 2,430,228 2,636,675 Parks and recreation 6,920,148 6,257,656 - - 6,920,148 6,257,656 Public works 6,102,130 6,339,233 - - 6,102,130 6,339,233 Interest 250,182 485,746 - - 250,182 485,746 Stormwater - - 456,377 838,806 456,377 838,806 Total Expenses 31,383,751 29,778,162 456,377 838,806 31,840,128 30,616,968 Change in net position (6,176,642) 703,898 759,292 405,363 (5,417,350) 1,109,261 Net position - beginning as previously reported 77,531,085 71,354,443 8,898,988 9,658,280 86,430,073 81,012,723 Prior period adjustment (See Note 12) - 7,896 - - - 7,896 Net Position - beginning, as restated 77,531,085 71,362,339 8,898,988 9,658,280 86,430,073 81,020,619 Net position - ending 71,354,443 $ 72,066,237 $ 9,658,280 $ 10,063,643 $ 81,012,723 $ 82,129,880 $ Governmental Activities Business-Type Activities Totals x Revenues increased by $5,303,451 or 20.1%, while expenses decreased by $1,223,160 or 3.8% over the prior fiscal year. x Taxes, $17,419,962, comprised 57.1% of the total governmental revenues, $30,482,060 during the fiscal year. Most of this category is property taxes, $ 11,630,934. The millage rate decreased from 2.399 to 2.351, however the tax base or property values increased. The net increase in ad valorem revenues was only $15,045. x Charges for services accounted for $7,793,829 or 25.6% of total governmental revenues. This category increased by almost $2.1 million. The building permitting fees increased by almost $1 million over the prior year. While the Village does not have room for many new housing developments, it experienced a boom in renovation type permitting. This line item was also over budget by almost $900,000. The parks and recreation line also experienced an increase of about $860,000 as programs were gradually reopening as COVID-19 rates dropped. x Operating and capital grants and contributions accounted for $2,876,540 or 9.0% of total governmental revenues. This line increased by close to $1.7 million. Almost $1 million of this figure is for the COVID- 19 funding from the federal government. These funds were not included in the revenue budget as their source was unknown at the time. The receivables for the COVID-19 and Hurricane Irma of $378,634 are also included. These federal grants are one-time events to aid the community in times of an emergency. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 7 Expenses and Program Revenues – Governmental Activities Revenues by Source – Governmental Activities Financial Analysis of the Government’s Funds The Village used fund accounting to ensure and demonstrate compliance with finance related requirements. Governmental funds. The focus of the Village’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’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. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Gen Gov Pub Safety B&P Parks & Rec. Public Works Int -Debt Expenses Revenue - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Charges Oper. Grants Cap. Grants Taxes Intergov. Other VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 8 Financial Analysis of the Government’s Funds (Continued) As of the end of the current fiscal year, the Village’s governmental funds (GAAP basis) reported combined ending fund balances of $13,818,512 an increase of $5,677,294 or 69.7% in comparison with the prior year, $8,141,218. Approximately 54.5% of this total amount, $7,216,677, constitutes 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 revenues related to the COVID-19 pandemic coupled with a managed growth in expenses to continue the investment in infrastructure and the community. The General Fund had an increase of $2,135,199. This was accomplished through the excess of revenues over the expenses. The pandemic revenues of about $1 million, the increased permitting fees due to the renovation boom of our area and an increase in community interest in park recreation were coupled with unfilled personnel positions, especially in the police and parks departments. The Transportation Fund decreased by $268,342, as the Village continued road projects as planned above and beyond planned revenues and used reserve funds. The CITT Public Transit Fund increased by $313,102 due to project delays from scarcity of materials. However, those projects are planned and will move forward. The Capital Projects Fund increased $3,687,774 as capital improvements are planned with the two note proceeds funded in the current fiscal year. The Village added another park with the purchase of land for $3.8 million and is undergoing a major improvement to an existing park, Pinecrest Gardens. This project in in process and will result in a park that is inviting to special needs and meets and exceeds ADA requirements. The nonmajor governmental funds decreased by $190,439. The decrease was comprised of $278,336 for the debt payment from FY20 made in FY21 offset by the impact fee funds increase pending projects in development. The General Fund is the chief operating fund of the Village. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $7,216,677. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance is 27.2% of total General Fund expenditures including transfers, while total fund balance represents 29.7% of that same amount. x The unassigned fund balance of the Village’s General Fund increased by $2,147,214 during the current fiscal year due to the excess of revenues over expenditures previously mentioned. x The Police expenditures were under budget by $259,933 due to unfilled open positions and various capital projects that were not completed and will be carried over to complete those projects such as the license plate reader, computer and radio equipment and a wellness application. x General Government departments combined were under budget by $18,860 due to a decrease of lobbyist expenses and not traveling to scheduled conferences. x Public Works was under by $61,915, caused by a drop in contractual services due to the scarcity of material and by a change in the Director position which brought about savings in the eligible vacation payout. x Parks and Recreation was under $136,929 due to a slow restart of the operations offered due to the Covid-19 pandemic. $54,804 will be carried over in FY 21 for improvements to Pinecrest Gardens, a parks master plan and to cover a shortfall in the 401a funding for an employee. The Debt Service Fund traditionally has no fund balance. The government transfers the exact amount needed for both principal and interest payments each year. This year, due to the timing of a lost and reissued check in FY20, the fund had a beginning balance for the amount of the reissued check. In the current fiscal year, the transfers in were less than the payments made in the year. This year $3,069,600 was paid in principal and $266,006 was paid in interest. One of the debt issuances provided for $855,000 for the pay off a note to take advantage of lower interest rates. The fund ended with a zero balance. 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 $1,863,604 to $2,238,198, an increase of $374,594. This increase reflects the fact that more funds were received than were spent on capital improvements this year. Those excess funds will be used for future year capital improvements, which are depreciated over many years. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 9 General Fund Budget Highlights The budget to actual variances in the General Fund were: x Total Taxes, $474,619. $474,619 over budgeted revenues due to a new agreement made with the electric franchise fee. The communication services tax is also over due to an update in the addresses that pertain to the Village. x Licenses and Permits, $999,252. $999,252 over the budgeted revenues due to an increase in permitting fees for $855,334. The Village experienced an exponential growth in renovation permitting. Much construction had been halted or delayed temporarily due to local orders in the previous year due to the Pandemic. x Charges for Services, $578,779. $578,779 over the budgeted amount due to a larger than expected demand stemming from the removal of the stay at home orders and easing up of distancing for social interactions. The reinstatement of programming in the parks, Community Center and Pinecrest Gardens was highly successful. x Intergovernmental revenue, $1,342,550. $1,350,204 was earned in excess of the budgeted revenues. The receipt of the FEMA Hurricane Irma funds incurred in FY 18 was $120,556 and Cares was $827,130. This income, was not budgeted and provided for the overage in this category. During the year, actual revenues in were more than actual expenditures, increasing the fund balance by $5,266,928 or $2,072,611 when including the transfers in and out. This increased the General Fund balance from $5,792,703 to $7,865,314. The amended budget had planned for expenditures over revenues of $3,873,333. The following highlights the reason for the budget amendments in the General Fund: x Covid-19 Emergency Protective Measures, $416,392, reimbursable by the Cares Act x Transfers to 911 funds for delays in funding, $45,969 x Transfer from General Fund to Capital funds for Pinecrest Gardens Project, $522,914 x Community Center repairs funded by 3rd party insurance, $47,750 x Gary Matzner Park Land purchase and improvements funded by debt issuance, $3,850,000 x Pinecrest Gardens Upper Garden Improvements, funded by debit issuance, $1,000,000 x Potable Water Project, funded by the American Recovery Plan, $32,126 x Attorney Fees and professional fees, $197,225 x Clerk Sick Pay out, $9,566 x Pinecrest Gardens Cypress Kitchen, funded by Shuttered Venue Grant, $319,614 x Transfer to Debt Fund for FY20 payment that was voided and reissued, $278,366 x Village Council Audiovisual system, $39,505 x Transfer from CITT to General Fund. Repayment from FY20 CITT fund shortage due to the loss of the FDOT grant for on demand transport. Eligibility was lost due to Covid-19 when the service was halted but the vendor agreement was still in effect, $27,000 VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 10 General Fund Budget Highlights (Continued) x Transfer from Transportation to CITT for invoice paid, $51,038 x ADA Sidewalk Capital Project funded by grant, $200,000 Capital Asset and Debt Administration Capital assets. The Village’s investment in capital assets for its governmental activities as of September 30th amounts to $95,319,270 (net of accumulated depreciation). This investment in capital assets includes land, buildings, equipment, roads, sidewalks, infrastructure, stormwater system, and construction in progress. The total increase in the Village’s investment in capital assets for the current fiscal year was 4.8%. x Major capital asset events during the current fiscal year included the following: x Stormwater improvements x Gary Matzner Park: Land purchase and improvements x Village Council Audio Visual System x Renovations and improvements at Pinecrest Gardens, the Community Center and various parks x Village-wide road improvement x Police and building and planning vehicles x Construction in Progress x Flagler Grove: Artificial Turf x Pinecrest Gardens: Upper Garden Construction and Lower Garden Path Lighting 2020 2021 2020 2021 2020 2021 General government 5,357,717 $ 5,325,416 $ - $ - $ 5,357,717 $ 5,325,416 $ Public safety 1,049,587 1,031,167 - - 1,049,587 1,031,167 Building and planning 85,174 83,540 - - 85,174 83,540 Parks 37,699,941 47,357,295 - - 37,699,941 47,357,295 Public works 38,959,235 33,696,407 - - 38,959,235 33,696,407 Stormwater - - 7,794,676 7,825,445 7,794,676 7,825,445 Totals 83,151,654 $ 87,493,825 $ 7,794,676 $ 7,825,445 $ 90,946,330 $ 95,319,270 $ Governmental Activities Business-type Activities Total Additional information on the Village’s capital assets can be found in Note 4. Long-term debt. At the end of the fiscal year, the Village had total bank debt outstanding of $19,684,372. Village of Pinecrest’s Outstanding Debt 2020 2021 Revenue bonds 9,082,000 $ 19,684,372 $ Governmental Activities The Village increased its total debt by $10,602,372 or 116.7% during the current fiscal year. There are five loan issues outstanding: the Library/Community Center, $621,000, which matures in FY 2024, Community Center/Coral Pine Park $3,428,300, which matures in FY 2029 and a Capital Improvements loan with an outstanding balance of $1,963,100 which matures in FY 2028. Two new loans were issued in the current fiscal year: Capital Improvements $7,921,446 that matures in FY 2041 and Refund and Capital Improvements $5,750,526 that matures in FY 2036. The funds from the second loan issued in FY21 were used to refund Pinecrest Gardens Improvements, $855,000 (Series 2011B) that matured in FY 2030. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS SEPTEMBER 30, 2021 11 Capital Asset and Debt Administration (Continued) The Series 2011B bonds carried the following bond rating: x Standard & Poor’s – AAA x Fitch – AA+. The Issuer default rating is a AAA This bond was refunded to take advantage of lower interest rates. Additional information on the Village’s long-term debt can be found in Note 6. Economic Factors and Next Year’s Budgets and Rates x The COVID-19 pandemic continues to be of concern, although the fiscal year 2022 budget was made with an expectation of that the Village will return to somewhat “normal” operation; yet some uncertainty still lingers. x Property values in the Village continue to grow and have allowed the Village to keep the reduction in the millage rate from 2.399 to 2.35 from the prior fiscal year. x 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. x The increased inflationary trend is of concern, but the Village is aggressive in securing pricing that is within our budget plans. During the current fiscal year, the unassigned fund balance for governmental funds increased to $7,534,482, which allows the Village Financial flexibility. The Village also has $5,043,765 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’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, 2021 Business- Governmental Type Activities Activities Total ASSETS Cash and equivalents 15,099,838 $ 2,503,940 $ 17,603,778 $ Receivables, net 1,576,491 45,602 1,622,093 Prepaid items 133,177 - 133,177 Capital assets: Non-depreciable 25,342,614 - 25,342,614 Depreciable, net 62,151,211 7,825,445 69,976,656 Total assets 104,303,331 10,374,987 114,678,318 DEFERRED OUTFLOWS OF RESOURCES OPEB 113,235 - 113,235 Pensions 2,162,985 - 2,162,985 Deferred Outflows Special Master 6,279,924 - 6,279,924 Total deferred outflows of resources 8,556,144 - 8,556,144 LIABILITIES Accounts payable 1,080,689 - 1,080,689 Accrued liabilities 1,221,174 - 1,221,174 Accrued interest payable 140,994 - 140,994 Unearned revenue 155,784 311,344 467,128 Noncurrent liabilities: Due within one year 1,997,599 - 1,997,599 Due in more than one year 21,917,840 - 21,917,840 Total liabilities 26,514,080 311,344 26,825,424 DEFERRED INFLOWS OF RESOURCES OPEB 92,266 - 92,266 Pensions 7,900,424 - 7,900,424 Deferred Inflows Special Master 6,279,924 - 6,279,924 Deferred gain on refunding 6,544 - 6,544 Total deferred inflows of resources 14,279,158 - 14,279,158 NET POSITION Net investment in capital assets 74,152,033 7,825,445 81,977,478 Restricted for: Transportation 622,280 - 622,280 Public safety 74,763 - 74,763 General government 42,924 - 42,924 Stormwater 102,414 - 102,414 Parks 67,052 - 67,052 Capital improvements 4,626,433 - 4,626,433 Unrestricted (7,621,662) 2,238,198 (5,383,464) Total net position 72,066,237 $ 10,063,643 $ 82,129,880 $ The accompanying notes to financial statements are an integral part of this statement. 12 STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Operating Capital Business- Charges for Grants and Grants and Governmental Type Expenses Services Contributions Contributions Activities Activities Total Functions/Programs Governmental activities: General government 4,423,341 $ 448,461 $ 1,087,763 $ 93,660 $ (2,793,457) $ - $ (2,793,457) $ Public safety 9,635,511 4,835,475 158,413 130,672 (4,510,951) - (4,510,951) Building, planning and zoning 2,636,675 - - - (2,636,675) - (2,636,675) Public works 6,339,233 7,876 956,469 18,910 (5,355,978) - (5,355,978) Parks and recreation 6,257,656 2,502,017 - 430,653 (3,324,986) - (3,324,986) Interest on long-term debt 485,746 - - - (485,746) - (485,746) Total governmental activities 29,778,162 7,793,829 2,202,645 673,895 (19,107,793) - (19,107,793) Business-type activities: Stormwater 838,806 1,241,362 - - - 402,556 402,556 Total business-type activities 838,806 1,241,362 - - - 402,556 402,556 Total primary government 30,616,968 9,035,191 2,202,645 673,895 (19,107,793) 402,556 (18,705,237) General revenues: Property taxes, levied for general purposes 11,630,934 - 11,630,934 Franchise fees on gross receipts 1,780,987 - 1,780,987 Utilities taxes 2,586,346 - 2,586,346 Communications services tab 845,303 - 845,303 Transportation tax 435,123 - 435,123 Business tax 141,269 - 141,269 Intergovernmental, not restricted to specific programs 2,090,872 - 2,090,872 Impact fees 86,953 - 86,953 Investment earnings 15,859 2,772 18,631 Miscellaneous 198,045 35 198,080 Total general revenues, special items, and transfers 19,811,691 2,807 19,814,498 Change in net position 703,898 405,363 1,109,261 Net position - beginning, as previously reported 71,354,443 9,658,280 81,012,723 Prior period adjustment (See Note 12) 7,896 - 7,896 Net position - as restated 71,362,339 9,658,280 81,020,619 Net position - end of year 72,066,237 $ 10,063,643 $ 82,129,880 $ Changes in Net Position Net (Expense) Revenue and Program Revenues VILLAGE OF PINECREST, FLORIDA The accompanying notes to financial statements are an integral part of this statement. 13 CITT Nonmajor Total Transportation Public Transit Capital Projects Governmental Governmental General Fund Fund Fund Fund Funds Funds ASSETS Cash and cash equivalents 8,622,629 $ 159,984 $ 405,596 $ 5,660,646 $ 250,983 $ 15,099,838 $ Receivables, net 1,279,091 39,163 221,737 - 36,500 1,576,491 Prepaid items 133,177 - - - - 133,177 Total assets 10,034,897 199,147 627,333 5,660,646 287,483 16,809,506 DEFERRED OUTFLOWS OF RESOURCES Special masters violations 6,279,924 - - - - 6,279,924 Total deferred outflows of resources 6,279,924 - - - - 6,279,924 Total assets and deferred outflows of resources 16,314,821 $ 199,147 $ 627,333 $ 5,660,646 $ 287,483 $ 23,089,430 $ LIABILITIES Accounts payable 413,991 $ 22,800 $ 26,687 $ 616,881 $ 330 $ 1,080,689 $ Accrued liabilities 1,221,174 - - - - 1,221,174 Unearned revenue 155,784 - - - - 155,784 Total liabilities 1,790,949 22,800 26,687 616,881 330 2,457,647 DEFERRED INFLOWS OF RESOURCES Special masters violations 6,279,924 - - - - 6,279,924 Unavailable revenue 378,634 - 154,713 - - 533,347 Total deferred inflows of resources 6,658,558 - 154,713 - - 6,813,271 FUND BALANCES Nonspendable: Prepaid expenses 133,177 - - - - 133,177 Restricted for: Transportation - 176,347 445,933 - - 622,280 Public safety - - - - 74,763 74,763 General government - - - - 42,924 42,924 Stormwater - - - - 102,414 102,414 Parks - - - - 67,052 67,052 Capital improvements - - - 4,626,433 - 4,626,433 Assigned for: - Health care 317,805 - - - - 317,805 Capital improvements 197,655 - - 417,332 - 614,987 Unassigned: Unassigned 7,216,677 - - - - 7,216,677 Total fund balances 7,865,314 176,347 445,933 5,043,765 287,153 13,818,512 Total liabilities, deferred inflows of resources and fund balances 16,314,821 $ 199,147 $ 627,333 $ 5,660,646 $ 287,483 $ 23,089,430 $ VILLAGE OF PINECREST, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Major Funds The accompanying notes to financial statements are an integral part of this statement. 14 Fund balances - total government funds (Page 14) 13,818,512 $ Amounts reported for governmental activities in the statement of net position are different as a result of: Capital assets used in governmental activities are not financial resources and therefore are not reported in the govrernmental funds. Governmental capital assets 236,798,217 Less accumulated depreciation (149,304,392) 87,493,825 Deferred outflows of resources, deferred inflows of resources, and the net pension liability and total OPEB liability related to the Village's pension and OPEB plans and bonds are not expected to be liquidated with expendable available financial resources and therefore are not reported in the funds. Bonds payable (19,684,372) Net pension liability (3,319,104) Total OPEB liability (276,557) Deferred gain on refunding (6,544) Deferred outflows of resources - pension 2,162,985 Deferred inflows of resources - pension (7,900,424) Deferred outflows of resources - OPEB 113,235 Deferred inflows of resources - OPEB (92,266) Revenue collected outside of period of availability 533,347 (28,469,700) Certain liabilities are not due and payable in the current period and therefore are not reported in the funds. Accrued interest payable (140,994) Compensated absences (635,406) (776,400) Net position of governmental activities (Page 12) 72,066,237 $ VILLAGE OF PINECREST, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2021 The accompanying notes to financial statements are an integral part of this statement. 15 VILLAGE OF PINECREST, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 CITT Nonmajor Total Transportation Public Transit Capital Projects Governmental Governmental General Fund Fund Fund Fund Funds Funds REVENUES: Taxes 16,984,839 $ 435,123 $ - $ - $ - $ 17,419,962 $ Licenses and permits 3,234,252 - - - 163,424 3,397,676 Intergovernmental revenues 3,649,170 18,910 801,756 50,000 61,054 4,580,890 Charges for services 3,116,839 - - - - 3,116,839 Fines and forfeitures 1,425,717 - - - 19,220 1,444,937 Investment earnings 11,952 400 156 3,328 23 15,859 Miscellaneous 161,592 - - 47,749 - 209,341 Total revenues 28,584,361 454,433 801,912 101,077 243,721 30,185,504 EXPENDITURES: Current: General government 4,308,327 - - - - 4,308,327 Public safety 9,435,625 - - - 158,164 9,593,789 Emergency and disaster relief 416,391 - - - - 416,391 Building, planning and zoning 2,595,413 - - - - 2,595,413 Public works 703,518 342,200 278,581 - - 1,324,299 Parks and recreation 5,323,211 - - - - 5,323,211 Debt service: Principal - - - - 3,069,600 3,069,600 Interest and other charges - - - 86,972 266,006 352,978 Capital outlay 534,948 339,107 144,015 10,107,184 78,816 11,204,070 Total expenditures 23,317,433 681,307 422,596 10,194,156 3,572,586 38,188,078 Excess (deficiency) of revenues over expenditures 5,266,928 (226,874) 379,316 (10,093,079) (3,328,865) (8,002,574) OTHER FINANCING SOURCES (USES): Proceeds from long-term debt - - - 12,816,972 855,000 13,671,972 Transfers in 27,000 - 48,880 963,881 2,283,426 3,323,187 Transfers out (3,221,317) (74,870) (27,000) - - (3,323,187) Total other financing sources and uses (3,194,317) (74,870) 21,880 13,780,853 3,138,426 13,671,972 Net change in fund balances 2,072,611 (301,744) 401,196 3,687,774 (190,439) 5,669,398 Fund balances - beginning, as previously reported 5,730,115 444,689 132,831 1,355,991 477,592 8,141,218 Prior period adjustment (See Note 12) 62,588 33,402 (88,094) - - 7,896 Fund balances - beginning, as restated 5,792,703 478,091 44,737 1,355,991 477,592 8,149,114 Fund balances - ending 7,865,314 $ 176,347 $ 445,933 $ 5,043,765 $ 287,153 $ 13,818,512 $ Major Funds The accompanying notes to financial statements are an integral part of this statement. 16 Amounts reported for governmental activities in the statement of activities are different as a result of: Net change in fund balances - total government funds (Page 16) 5,669,398 $ 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. Capital outlay 11,204,070 Less: Items not meeting the threshold for capitalization (40,994) Less: Loss on disposal of capital assets (2,003) Less current year depreciation (6,818,902) 4,342,171 The issuance of long-term debt (e.g. bonds, leases) provided current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Proceeds from issuance of debt (13,671,972) Principal payments 3,069,600 (10,602,372) Some expenses reported in the statement of activities do not require current financial resources and, therefore, are not reported as expenditures in the governmental funds. Change in compensated absences (5,714) Change in accrued interest (126,471) Amortization of deferred charge and gain on refunding (6,297) OPEB expense (12,159) Pension expense 1,148,787 296,555 Change in net position of governmental activities (Page 13) 703,898 $ VILLAGE OF PINECREST, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Revenue collected outside of the period of availability is not available to pay for current period expenditures however it is available to pay long term obligations of the Village. The accompanying notes to financial statements are an integral part of this statement. 17 VILLAGE OF PINECREST, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUND SEPTEMBER 30, 2021 Stormwater Fund ASSETS Current assets: Cash and cash equivalents 2,503,940 $ Accounts receivable 45,602 Total current assets 2,549,542 Non-current assets: Capital assets: Capital assets, depreciable, net 7,825,445 Total non-current assets 7,825,445 Total assets 10,374,987 $ LIABILITIES Current liabilities: Unearned revenue 311,344 $ Total liabilities 311,344 NET POSITION Investment in capital assets 7,825,445 Unrestricted 2,238,198 Total net position 10,063,643 $ The accompanying notes to financial statements are an integral part of this statement. 18 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Stormwater Fund Operating revenues: Charges for services 1,241,362 $ Total operating revenues 1,241,362 Operating expenses: Cost of sales 637,803 Depreciation 201,003 Total Operating Expenses 838,806 Operating income 402,556 Non-operating revenues: Investment earnings 2,772 Miscellaneous revenue 35 Total non-operating revenue 2,807 Income before contributions and transfers 405,363 Change in net position 405,363 Total net position - beginning of year 9,658,280 Total net position - ending of year 10,063,643 $ VILLAGE OF PINECREST, FLORIDA The accompanying notes to financial statements are an integral part of this statement. 19 Stormwater Cash flows from operating activities: Cash received from customers 1,267,898 $ Cash paid to suppliers for goods and services (660,621) Net cash provided by operating activities 607,277 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (231,772) Net cash used in capital and related financing activities (231,772) Cash flows from investing activities Interest received 2,807 Net cash provided by investing activities 2,807 Net change in Cash 378,312 Cash and cash equivalents, beginning of year 2,125,628 Cash and cash equivalents, end of year 2,503,940 $ Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) 402,556 $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 201,003 Change in operating assets and liabilities: Accounts receivable 20,450 Accounts payable (22,818) Unearned revenue 6,086 Net cash provided by operating activities 607,277 $ VILLAGE OF PINECREST, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 The accompanying notes to financial statements are an integral part of this statement. 20 NOTES TO %$6,& FINANCIAL STATEMENTS VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 21 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, 2021 22 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 30 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. Transportation Fund – This fund receives grants from the state of Florida and from Miami-Dade County to be used to account for and report resources restricted or committed to the improvement of the Village’s roadway system. The primary sources of revenue are intergovernmental grants from a portion of the gasoline sales tax and a Miami-Dade County share of a half cent sales tax to be used for non-public transportation. CITT Public Transit Fund – This fund reports on the public transit funds received from a portion of the transportation sales tax. 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. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 23 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. 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. 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 VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 24 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 – 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 position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Village only has 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). 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 position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Village has 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, 2021 is approximately $6,280,000. 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, 2021 25 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, 2021, was 2.399 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, 2021. 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, 2021 26 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, 2021, 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 founds 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, 2021 27 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, 2021: Investment Fair Value Florida Prime 6,371,038 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 28 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 49 days. The weighted average life (WAL) of Florida PRIME is 64 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, 2021, 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 are exempt from Concentration and Interest Rate Risk disclosures. 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, 2021 29 NOTE 3 – RECEIVABLES As of September 30, 2021, receivables for the Village's individual major and nonmajor funds, in the aggregate including applicable allowances for uncollectible accounts, are as follows: CITT Nonmajor Transportation Public Transit Governmental Stormwater General Fund Fund Fund Funds Fund Total Receivables Intergovernmental $ 585,685 $ 39,163 $ 221,737 $ 36,339 - 882,924 $ Franchise and utility 635,396 - - - - 635,396 Ad-valorem taxes 36,172 - - - - 36,172 Fines 6,421 - - 161 - 6,582 Accounts 1,600 - - - 45,602 47,202 Other 29,932 - - - - 29,932 Allowance for uncollectible accounts (16,115) - - - - (16,115) 1,279,091 $ 39,163 $ 221,737 $ 36,500 $ 45,602 $ 1,622,093 $ Total unearned revenues as of September 30, 2021, are as follows: Occupational taxes collected in advance 108,284 $ Sponsorships collected in advance 47,500 Stormwater utility charges collected in advance 311,344 467,128 $ NOTE 4 – CAPITAL ASSETS Capital asset activity for the year ended September 30, 2021, was as follows: Additions Deletions Governmental activities: Capital assets, not being depreciated: Land 16,959,440 $ 3,822,725 $ - $ 20,782,165 $ Construction in progress 60,514 4,560,449 (60,514) 4,560,449 Total capital assets, not being depreciated 17,019,954 8,383,174 (60,514) 25,342,614 Capital assets, being depreciated: Buildings 28,256,519 - - 28,256,519 Improvements other than buildings 11,559,300 1,162,314 (12,141) 12,709,473 Machinery and equipment 5,718,486 633,546 (42,673) 6,309,359 Computer software 274,711 58,607 - 333,318 Infrastructure 162,848,844 998,090 - 163,846,934 Total capital assets, being depreciated 208,657,860 2,852,557 (54,814) 211,455,603 Less accumulated depreciation for: Buildings (6,865,927) (665,624) - (7,531,551) Improvements other than buildings (5,798,943) (606,773) - (6,405,716) Machinery and equipment (4,199,648) (509,815) 40,670 (4,668,793) Computer software (251,010) (8,861) - (259,871) Infrastructure (125,410,632) (5,027,829) - (130,438,461) Total accumulated depreciation (142,526,160) (6,818,902) 40,670 (149,304,392) Total capital assets, being depreciated, net 66,131,700 (3,966,345) (14,144) 62,151,211 Governmental activities capital assets, net 83,151,654 $ 4,416,829 $ (74,658) $ 87,493,825 $ Beginning Balance Ending Balance VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 30 NOTE 4 – CAPITAL ASSETS (CONTINUED) Additions Deletions Business-type activities: Capital assets, being depreciated: Infrastructure 10,593,478 $ 231,772 $ - $ 10,825,250 $ Total capital assets being depreciated 10,593,478 231,772 - 10,825,250 Less accumulated depreciation for: Infrastructure (2,798,802) (201,003) - (2,999,805) Total accumulated depreciation (2,798,802) (201,003) - (2,999,805) Total capital assets, being depreciated, net 7,794,676 30,769 - 7,825,445 Business-type activities capital assets, net 7,794,676 $ 30,769 $ - $ 7,825,445 $ Beginning Balance Ending Balance Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government 224,311 $ Public Safety 366,089 Public Works 5,064,656 Building and Planning 20,897 Parks & Recreation 1,142,949 Total depreciation expense - governmental activities 6,818,902 $ Business-Type Activities: Stormwater utility 201,003 $ Total depreciation expense - business-type activities 201,003 $ NOTE 5 – INTERFUND TRANSFERS The composition of interfund transfers as of September 30, 2021, is as follows: Transfers Out Transfers In Amount Purpose General Fund Debt Service Fund 2,176,250 $ To provide debt service funds General Fund Capital Projects Fund 963,881 To provide capital funds General Fund Hardwire Fund 54,457 To provide operational funds General Fund Wireless Fund 22,981 To provide operational funds General Fund Prepaid Fund 3,748 To provide operational funds Total General Fund 3,221,317 $ CITT Public Transit Fund General Fund 27,000 $ To provide operational funds Transportation Fund CITT Public Transit Fund 48,880 $ To provide operational funds Transportation Fund Debt Service Fund 25,990 To provide debt service funds Total Transportation Fund 74,870 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 31 NOTE 6 – LONG-TERM DEBT The Village has five debt issues outstanding at September 30, 2021, 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 2014 is for refunding the construction costs of the Library/Community Center at Pinecrest Gardens, $3,075,000 and bears interest at 2.10%. 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 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. The 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. 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. Maturities of these direct borrowings are as follows: Year ending September 30, Principal Interest Total 2022 1,449,627 $ 541,691 $ 1,991,318 $ 2023 1,585,757 406,382 1,992,139 2024 1,621,557 370,864 1,992,421 2025 1,443,225 333,056 1,776,281 2026 1,476,163 300,491 1,776,654 2027-2031 5,872,321 1,007,437 6,879,758 2032-2036 3,891,273 501,092 4,392,365 2037-2041 2,344,449 145,927 2,490,376 19,684,372 $ 3,606,940 $ 23,291,312 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 32 NOTE 6 – LONG-TERM DEBT (CONTINUED) Changes in long-term liabilities of governmental activities during the year are summarized as follows: Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities Direct borrowings: Bonds payable 9,082,000 $ 13,671,972 $ (3,069,600) $ 19,684,372 $ 1,449,627 $ Total OPEB liability 305,958 16,835 (46,236) 276,557 - Net pension liability 13,413,667 - (10,094,563) 3,319,104 7,877 Compensated absences 629,692 777,189 (771,475) 635,406 540,095 Total governmental activities 23,431,317 $ 14,465,996 $ (13,981,874) $ 23,915,439 $ 1,997,599 $ 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 Transportation Fund CITT Public Transit Fund Capital Projects Fund Nonmajor Governmental Funds Total Payables: Payroll 620,055 $ - $ - $ - $ - $ 620,055 $ Vendors 413,991 22,800 26,687 616,881 330 1,080,689 Security deposits 274,937 - - - - 274,937 Other 326,182 - - - - 326,182 Total payables 1,635,165 $ 22,800 $ 26,687 $ 616,881 $ 330 $ 2,301,863 $ 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 $722,843. Employee contributions were $380,087 for the fiscal year ended September 30, 2021. 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, 2021, the Village made no contributions and employees contributed $463,298. 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. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 33 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 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. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 34 NOTE 9 – RETIREMENT PLAN (CONTINUED) 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, 2020 through June 30, 2021, and from July 1, 2021 through September 30, 2021, respectively, were as follows: Regular Class – 10.00% and 10.82%; Senior Management – 27.29% and 29.01%; and DROP participants – 16.98% and 18.34%. These employer contribution rates do not include the 1.66% HIS Plan subsidy for the periods October 1, 2020 through June 30, 2021, and from July 1, 2021 through September 30, 2021, respectively. The Village’s contributions, including employee contributions, to the Pension Plan totaled $928,571 for the fiscal year ended September 30, 2021. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions At September 30, 2021, the Village reported a liability of $1,841,231 for its proportionate share of the Pension Plan’s net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The Village’s proportion of the net pension liability was based on a projection of the Village’s 2020-2021 fiscal year contributions relative to the 2020-2021 fiscal year contributions of all participating members. At June 30, 2021, the Village’s proportion was 0.0244%, which was a decrease from its proportion measured as of June 30, 2020, of 0.0277%. For the fiscal year ended September 30, 2021, the Village recognized pension expense of $(230,260). In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 315,590 $ - $ Change of assumptions 1,259,862 - Net difference between projected and actual earnings on FRS pension plan investments - 6,423,594 Changes in proportion and differences between the Village FRS contributions and proportionate share of contributions 59,050 1,315,577 Village FRS pension plan contributions subsequent to the measurement date 264,164 - Total 1,898,666 $ 7,739,171 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 35 NOTE 9 – RETIREMENT PLAN (CONTINUED) The deferred outflows of resources related to the Pension Plan, totaling $264,164 resulting from Village contributions to FRS subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows: Fiscal Year Ending September 30 Deferred outflows/(inflows), net 2022 (1,123,347) $ 2023 (1,306,759) 2024 (1,632,539) 2025 (1,925,466) 2026 (116,558) Thereafter - Actuarial assumptions The total pension liability in the June 30, 2021, actuarial valuation was determined using the following actuarial assumption, applied to all period included in the measurement: Inflation: 2.40% Salary increases: 3.25%, average, including inflation Investment rate of return: 6.80%, 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. The actuarial assumptions used in the July 1, 2021, 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: Asset Class Target Allocation 1 Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 2.1% 2.1% 1.1% Fixed income 20.0% 3.8% 3.7% 3.3% Global equity 54.2% 8.2% 6.7% 17.8% Real estate 10.3% 7.1% 6.2% 13.8% Private equity 10.8% 11.7% 8.5% 26.4% Strategic investments 3.7% 5.7% 5.4% 8.4% 100% Assumed inflation-mean 2.4% 1.2% Note: (1) As outlined in the Plan's investment policy VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 36 NOTE 9 – RETIREMENT PLAN (CONTINUED) Discount rate The discount rate used to measure the total pension liability was 6.80%. 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 6.80%, 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 5.80% 6.80% 7.80% Village's proportionate share of the net pension liability 8,234,110 $ 1,841,231 $ (3,502,499) $ Detailed information regarding the Pension Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. Payables to the pension plan At September 30, 2021, 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, 2021. 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, 2021, 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, 2021, the HIS contribution for the period October 1, 2020 through September 30, 2021, 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 $70,818 for the current year. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 37 NOTE 9 – RETIREMENT PLAN (CONTINUED) Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions At September 30, 2021, the Village reported a liability of $1,477,873 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The Village’s proportionate share of the net pension liability was based on the Village’s 2020-2021 fiscal year contributions relative to the 2020-2021 fiscal year contributions of all participating members. At June 30, 2021, the Village's proportionate share was 0.0120%, which was an increase from its proportionate share measured as of June 30, 2020, of 0.0116%. For the fiscal year ended September 30, 2021, the Village recognized pension expense of $104,927. In addition the Village reported deferred outflows of resources and deferred in flows of resources related to pensions from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 49,453 $ 619 $ Change of assumptions 116,128 60,892 Net difference between projected and actual earnings on HIS investments 1,541 - Changes in proportion and differences between the Village HIS contributions and proportionate share of contributions 78,180 99,742 Village HIS contributions subsequent to the measurement date 19,017 - Total 264,319 $ 161,253 $ The deferred outflows of resources related to the HIS Plan, totaling $19,017 resulting from Village contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2021. 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: Fiscal Year Ending September 30 Deferred outflows/(inflows), net 2022 28,141 $ 2023 7,678 2024 12,134 2025 12,138 2026 18,089 Thereafter 5,869 VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 38 NOTE 9 – RETIREMENT PLAN (CONTINUED) The total pension liability in the July 1, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation: 2.40% Salary increases: 3.25%, average, including inflation Muncipal bond index 2.16% Mortality rates were based on the Generational PUB-2010 with Projection Scale BB tables. The actuarial assumptions used in the July 1, 2021, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. Discount rate The discount rate used to measure the total pension liability was 2.16%. 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 2.16%, 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 1.16% 2.16% 3.16% Village's proportionate share of the net pension liability 1,708,564 $ 1,477,873 $ 1,288,873 $ 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, 2021, 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, 2021. 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 1,841,231 $ 1,477,873 $ 3,319,104 $ Deferred outflows of resources 1,898,666 264,319 2,162,985 Deferred inflows of resources 7,739,171 161,253 7,900,424 Pension expense/expenditure (230,260) 104,927 (125,333) VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 39 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. Membership in the plan consisted of the following at September 30, 2021: Retirees and beneficiaries currently receiving benefits 2 Inactive plan members entitled to but not yet receiving benefits - Active employees 129 Total 131 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, 2020 and was determined by an actuarial valuation as of October 1, 2019, 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, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Rate: Same as Healthcare Cost Trend Rates Salary Increase: 3.00% Discount Rate: 2.14% Initial Trend Rate: 6.50% Ultimate Trend Rate: 5.00% by 2022/2023 Participation Rate: 10% VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 40 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) For general employees, mortality rates were based on the PUB-2010 mortality tables. For female lives, 100% of the white-collar table was used. For male lives, a 50% white collar table, 50% blue collar table blend was used. All tables include fully generational adjustments for mortality improvements using improvement scale BB. For disabled lives, mortality rates were based on the PUB-2010 sex-distinct disabled mortality tables with female lives set forward two years, male lives set back four years. Disabled mortality has not been adjusted for mortality improvements. Discount rate Given the Village’s decision not to fund the program, all future benefit payments were discounted using a municipal bond rate of 2.14%. Changes in the total OPEB liability for the Village for the year ended September 30, 2021, were as follows: Total OPEB Liability Balance at 9/30/2020 305,958 $ Changes for the year: Service cost 25,501 Expected interest growth 6,926 Demographic experience (24,308) Benefit payments and refunds (15,695) Assumption changes (21,825) Net changes (29,401) Balance at 9/30/2021 276,557 $ 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 (1.14%) or 1-percentage-point higher (3.14%) than the current discount rate: Current Discount 1% Decrease Rate Assumption 1% Increase (1.14%) (2.14%) (3.14%) Total OPEB liability 302,255 $ 276,557 $ 253,804 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 41 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) 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 (6.50% graded down to 5.00%) 1% Trend Increase Total OPEB liability 245,427 $ 276,557 $ 314,094 $ 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, 2021, 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, 2021, the Village recognized OPEB expense of $16,835. At September 30, 2021, 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 40,603 $ 29,054 $ Change of assumptions 53,256 63,212 Village contributions subsequent to the measurement date 19,376 - Net changes 113,235 $ 92,266 $ The deferred outflows of resources related to the OPEB Plan, totaling $19,376 resulting from Village contributions to the plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2021. 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 2022 $ 103 2023 103 2024 103 2025 103 2026 103 Thereafter 1,078 VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 42 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 $1,630,409 to the Village for the fiscal year ending September 30, 2021. 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 $801,756 to the Village for the fiscal year ending September 30, 2021, 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. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 43 NOTE 11 – COMMITMENTS AND CONTINGENCIES (CONTINUED) 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: CRS Project, Building & Planning 7,412 $ Ammunition, Police 3,039 Marketing Materials, Police 16,156 License Plate Reader, Police 2,617 Generator, Police 8,142 Radio Antenna Install, Police 1,415 Air Filters, Police 1,920 Patrol Bicycle, Police 1,125 Radio Equipment, Police 5,377 Computer Equipment, Police 8,531 CSA Dodge Ram Vehicle Wrap, Police 1,750 Ice Machine, Police 6,821 Wellness Application, Police 15,000 401a Employer Contribution, HR 28,350 Master Plan, Parks 90,000 Total General Fund Carryovers 197,655 $ Capital Fund: License Plate Reader 330,963 $ Monument Sign 205,000 Middle School Basketball Court 30,000 Gary Matzner Park Improvements 27,275 Community Center 7,854 Greer Park Improvements 407,456 Coral Pine Park Improvements 2,500,100 Flagler Grove Park Improvements 396,893 Pinecrest Gardens Improvements 3,009,178 Total Capital Fund Carryovers 6,914,719 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2021 44 NOTE 12 – PRIOR PERIOD ADJUSTMENTS During the fiscal year ended September 30, 2021, the net position of the Government-Wide Governmental Activities Business-Type Activities and Utility Fund have been adjusted to correct revenues State and County revenues, accounts receivable, and unavailable revenues. In addition, the opening fund balance of the General Fund, the Transportation Fund, and the CITT Public Transit Fund were restated at the fund level of the governmental funds. Government- Wide Financial Statements Governmental Activities Net position, beginning, as previously reported 71,354,443 $ Correction of corresponding State and County receivables, revenues, and unavailable revenues 7,896 Net position - beginning, as restated 71,362,339 $ General Fund Building Fees Fund CITT Public Transit Fund Fund balances - beginning, as previously reported 5,730,115 $ 444,689 $ 132,831 $ Correction of accrual for State related revenues and receivables 62,588 33,402 - Correction of accrual for County related revenues, receivables, and unavailable revenues - - (88,094) Fund balances - beginning, as restated 5,792,703 $ 478,091 $ 44,737 $ Fund Financial Statements NOTE 13 – SUBSEQUENT EVENTS On October 19, 2021, the Village amended and restated a final assessment resolution 2021-75 impacting the Potable Water Improvements Project. The special assessment imposed by the Village will share the cost of the project including but not limited to, the acquisition, design, construction and installation of potable water mains and water distribution facilities within the incorporated area of the Village, as described in

3 of the Village Charter. The remaining funding for the project will be provided from debt proceeds through the issuance of new debt during the fiscal year ending September 30, 2022. REQUIRED SUPPLEMENTARY INFORMATION Variance with Final Budget Original Final Actual Positive/(Negative) Revenues: Ad valorem taxes 11,757,635 $ 11,757,635 $ 11,630,934 $ (126,701) $ Franchise fees 1,377,780 1,377,780 1,780,987 403,207 Utility taxes 2,535,000 2,535,000 2,586,346 51,346 Communications services tax 729,305 729,305 845,303 115,998 Business tax 110,500 110,500 141,269 30,769 Total taxes 16,510,220 16,510,220 16,984,839 474,619 Licenses and permits 2,235,000 2,235,000 3,234,252 999,252 Intergovernmental revenue 2,306,620 2,306,620 3,649,170 1,342,550 Charges for services 2,538,060 2,538,060 3,116,839 578,779 Fines and forfeitures 1,487,100 1,487,100 1,425,717 (61,383) Investment earnings 130,000 130,000 11,952 (118,048) Miscellaneous revenues 162,500 162,500 161,592 (908) Total revenues 25,369,500 25,369,500 28,584,361 3,214,861 Expenditures: Current General government Village council 170,095 204,095 179,608 24,487 Village manager 779,345 779,345 792,470 (13,125) Village clerk 399,580 409,146 419,367 (10,221) Finance department 378,930 387,930 375,145 12,785 Village attorney 445,000 618,225 618,225 - General government 1,418,245 1,466,245 1,463,729 2,516 Information technology 513,295 513,295 510,877 2,418 Total general government 4,104,490 4,378,281 4,359,421 18,860 Public safety - police 9,954,530 10,144,630 9,884,697 259,933 Emergency and disaster relief - 416,392 416,391 1 Building, planning and zoning 2,620,485 2,620,485 2,615,778 4,707 Public works 765,470 765,470 703,555 61,915 Parks and recreation 5,440,825 5,474,520 5,337,591 136,929 Total expenditures 22,885,800 23,799,778 23,317,433 482,345 Excess (deficiency) of revenues over expenditures 2,483,700 1,569,722 5,266,928 3,697,206 Other financing sources (uses): Transfers in - - 27,000 27,000 Transfers out (2,483,690) (3,370,444) (3,221,317) 149,127 Total other financing sources (uses) (2,483,690) (3,370,444) (3,194,317) 176,127 10 (1,800,722) 2,072,611 3,873,333 Fund balance appropriated (10) 1,800,722 - (1,800,722) Net change in fund balance - $ - $ 2,072,611 2,072,611 $ Fund balance - beginning, as restated (See Note 12) 5,792,703 Fund balance - ending 7,865,314 $ Revenues over (under) expenditures and other financing sources (uses) VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Budgeted Amounts See notes to budgetary comparison schedule. 45 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Transportation taxes 423,385 $ 423,385 $ 435,123 $ 11,738 $ Investment earnings - - 18,910 18,910 Miscellaneous revenues 12,000 12,000 400 (11,600) Total revenues 435,385 435,385 454,433 11,738 Expenditures: Current: Public works 429,085 439,035 342,200 96,835 Capital outlay: Public works 476,000 476,000 339,107 136,893 Total expenditures 905,085 915,035 681,307 233,728 Excess (deficiency) of revenues over expenditures (469,700) (479,650) (226,874) 252,776 Other financing sources (uses) : Transfers out (25,990) (74,870) (74,870) - Total other financing sources (uses) (25,990) (74,870) (74,870) - Revenues over (under) expenditures and other financing sources (uses) (495,690) (554,520) (301,744) 252,776 Fund balance appropriated 495,690 554,520 - (554,520) Net change in fund balance - $ - $ (301,744) (301,744) $ Fund balance - beginning, as restated (See Note 12) 478,091 Fund balance - ending 176,347 $ VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Budgeted Amounts See notes to budgetary comparison schedule. 46 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenue 831,098 $ 831,098 $ 801,756 $ (29,342) $ Investment earnings 3,000 3,000 156 (2,844) Total revenues 834,098 834,098 801,912 (29,342) Expenditures: Current: Public works 360,980 360,980 278,581 82,399 Capital outlay: Public works 420,000 420,000 144,015 275,985 Total expenditures 780,980 780,980 422,596 358,384 Excess (deficiency) of revenues over expenditures 53,118 53,118 379,316 326,198 Other financing sources (uses) : Transfers in - - 48,880 48,880 Transfers out - - (27,000) (27,000) Total other financing sources (uses) - - 21,880 21,880 Revenues over (under) expenditures and other financing sources (uses) 53,118 53,118 401,196 348,078 Fund balance appropriated (53,118) (53,118) - 53,118 Net change in fund balance - $ - $ 401,196 401,196 $ Fund balance - beginning, as restated (See Note 12) 44,737 Fund balance - ending 445,933 $ VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - CITT PUBLIC TRANSIT FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Budgeted Amounts See notes to budgetary comparison schedule. 47 VILLAGE OF PINECREST, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 48 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 $321,290 during the fiscal year ended September 30, 2021. 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. NOTE 2 – RECONCILIATION OF BUDGETED AND ACTUAL RESULTS For the year ended September 30, 2021, expenditures exceeded appropriations in the following: General Fund - Village manager 13,125 $ General Fund - Village clerk 10,221 These unfavorable variances were caused by unbudgeted costs related to unforeseen circumstances and occurrences during the year and were covered by revenues in excess of budget and unassigned fund balance. Reporting period ending 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 Measurement date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Village's proportion of the FRS net pension liability 0.024375% 0.027684% 0.027808% 0.031705% 0.032074% 0.031173% 0.027937% 0.028332% Village's proportionate share of the FRS net pension liability 1,841,231 $ 11,998,695 $ 9,576,699 $ 9,549,770 $ 9,487,370 $ 7,871,188 $ 3,608,378 $ 1,728,668 $ Village's covered payroll 4,310,385 $ 3,963,213 $ 4,011,802 $ 3,977,497 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ Village's proportionate share of the FRS net pension liability as a percentage of its covered payroll 42.72% 302.75% 238.71% 240.09% 229.60% 178.11% 96.81% 47.38% FRS Plan fiduciary net position as a percentage of the total pension liability 96.40% 78.85% 82.61% 84.26% 83.69% 84.88% 92.00% 96.09% Note: The schedule is intended to show information for the last ten (10) fiscal years. Additional years will be displayed as they become available. VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN (FRS) SEPTEMBER 30, 2021 49 Reporting period ending 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 Measurement date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Contractually required FRS contribution 928,571 $ 919,820 $ 862,250 $ 903,573 $ 834,974 $ 834,553 $ 703,668 $ 656,121 $ FRS contribution in relation to the contractually required contribution (928,571) (919,820) (862,250) (903,573) (834,974) (834,553) (703,668) (656,121) FRS contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ Village's covered payroll 4,310,385 $ 3,920,088 $ 3,888,592 $ 3,863,023 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ FRS contribution as a percentage of covered payroll 21.54% 23.46% 22.17% 23.39% 20.21% 18.88% 18.88% 17.98% Note: The schedule is intended to show information for the last ten (10) fiscal years. Additional years will be displayed as they become available. NORTH BAY VILLAGE, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE VILLAGE'S CONTRIBUTIONS - FLORIDA RETIREMENT SYSTEM PENSION PLAN (FRS) SEPTEMBER 30, 2021 50 Reporting period ending 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 Measurement date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Village's proportion of the HIS net pension liability 0.012048% 0.011589% 0.011957% 0.013136% 0.012697% 0.012216% 0.012164% 0.012125% Village's proportionate share of the HIS net pension liability 1,477,873 $ 1,414,972 $ 1,337,908 $ 1,390,295 $ 1,357,598 $ 1,423,708 $ 1,240,524 $ 1,133,680 $ Village's covered payroll 4,049,302 $ 3,963,213 $ 4,011,802 $ 3,977,497 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ Village's proportionate share of the HIS net pension liability as a percentage of its covered payroll 36.50% 35.70% 33.35% 34.95% 32.85% 32.22% 33.28% 31.07% HIS Plan fiduciary net position as a percentage of the total pension liability 3.56% 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% Note: The schedule is intended to show information for the last ten (10) fiscal years. Additional years will be displayed as they become available. VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF NET PENSION LIABILITY HEALTH INSURANCE SUBSIDY PENSION PLAN (HIS) SEPTEMBER 30, 2021 51 Reporting period ending 9/30/2021 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014 Measurement date 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Contractually required HIS contribution 70,818 $ 66,781 $ 66,398 $ 71,235 $ 67,195 $ 48,773 $ 43,532 $ 37,882 $ HIS contribution in relation to the contractually required contribution (70,818) (66,781) (66,398) (71,235) (67,195) (48,773) (43,532) (37,882) HIS contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ Village's covered payroll 4,049,302 $ 3,920,088 $ 3,888,592 $ 3,863,023 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ HIS contribution as a percentage of covered payroll 1.75% 1.70% 1.71% 1.84% 1.63% 1.10% 1.17% 1.04% Note: The schedule is intended to show information for the last ten (10) fiscal years. Additional years will be displayed as they become available. VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE VILLAGE'S CONTRIBUTIONS - HEALTH INSURANCE SUBSIDY PENSION PLAN (HIS) SEPTEMBER 30, 2021 52 Reporting period ending 9/30/2021 9/30/2020 9/30/2019 9/30/2018 Measurement date 9/30/2020 9/30/2019 9/30/2018 9/30/2017 Total OPEB liability Service cost 25,501 $ 25,752 $ 17,496 $ 24,009 $ Interest 6,926 8,898 8,400 6,051 Changes of benefit terms - - 55,678 - Differences between expected and actual experience (24,308) (8,545) - - Changes of assumptions (21,825) 64,444 (59,606) - Benefit payments (15,695) (14,644) (10,268) (7,548) Net change in total OPEB liability (29,401) $ 75,905 $ 11,700 $ 22,512 $ Total OPEB liability-beginning 305,958 230,053 218,353 195,841 Total OPEB liability-ending 276,557 $ 305,958 $ 230,053 $ 218,353 $ Covered payroll 8,605,208 $ 9,205,450 $ 7,885,136 $ 6,991,252 $ Total OPEB liability as a percentage of covered payroll 3.21% 3.32% 2.92% 3.12% Notes to the Schedule: Covered payroll was projected one year forward from the valuation date for the reporting period ending September 30, 2019. The schedule will present 10 years of information once it is accumulated. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS OTHER POST-EMPLOYMENT BENEFITS (OPEB) SEPTEMBER 30, 2021 53 COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Police Education Fund – This fund receives funds from judgements, donations and grants to be used to provide training to police department personnel. Police Forfeiture Fund – This fund is used to account for revenues received from federal, state and local law enforcement forfeitures and seizures which are restricted for law enforcement purposes. Hardwire Fund – This fund receives funds from a tax on land-based phone lines and is used to fund 911 services. Wireless Fund – This fund receives funds derived from a tax on cell phones and is used to fund 911 services. Prepaid 911 Fund – This fund receives funds collected by the state for the emergency telephone number 911 which are restricted for the purchase of systems, training, communications and related capital asset purchases. Impact Fees Fund – This fund receives impact fees charged against new development to provide for capital related costs made necessary by the new growth. DEBT SERVICE 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. VILLAGE OF PINECREST, FLORIDA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Police Education Fund Police Forfeiture Fund Hardwire Fund Wireless Fund Prepaid 911 Fund Impact Fees Fund Debt Service Fund Total Nonmajor Governmental Funds ASSETS Cash and cash equivalents 17,164 $ 10,506 $ 1 $ - $ 1 $ 223,311 $ - $ 250,983 $ Accounts receivable, net 161 - 14,865 17,215 4,259 - - 36,500 Total assets 17,325 $ 10,506 $ 14,866 $ 17,215 $ 4,260 $ 223,311 $ - $ 287,483 $ LIABILITIES Accounts payable - $ - $ - $ - $ - $ 330 $ - $ 330 $ Total liabilities - - - - - 330 - 330 FUND BALANCES Restricted for: Public safety 17,325 10,506 14,866 17,215 4,260 10,591 - 74,763 General government - - - - - 42,924 - 42,924 Stormwater - - - - - 102,414 - 102,414 Parks - - - - - 67,052 - 67,052 Total fund balances 17,325 10,506 14,866 17,215 4,260 222,981 - 287,153 Total liabilities and fund balances 17,325 $ 10,506 $ 14,866 $ 17,215 $ 4,260 $ 223,311 $ - $ 287,483 $ Special Revenue Funds 54 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 Police Education Fund Police Forfeiture Fund Hardwire Fund Wireless Fund Prepaid 911 Fund Impact Fees Fund Debt Service Fund Total Nonmajor Governmental Funds REVENUES: Licenses and permits - $ - $ - $ - $ - $ 163,424 $ - $ 163,424 $ Intergovernmental revenues - - 25,618 28,242 7,194 - - 61,054 Fines and forfeitures 3,965 15,255 - - - - - 19,220 Investment earnings 14 16 (9) 2 - - - 23 Total revenues 3,979 15,271 25,609 28,244 7,194 163,424 - 243,721 EXPENDITURES: Current: Public safety 6,565 - 71,239 62,062 18,298 - - 158,164 Debt Service Principal retirement - - - - - - 3,069,600 3,069,600 Interest - - - - - - 266,006 266,006 Capital Outlay - 30,709 4,805 - - 43,302 - 78,816 Total expenditures 6,565 30,709 76,044 62,062 18,298 43,302 3,335,606 3,572,586 Excess (deficiency) of revenues over expenditures (2,586) (15,438) (50,435) (33,818) (11,104) 120,122 (3,335,606) (3,328,865) OTHER FINANCING SOURCES (USES): Proceeds from long-term debt, net - - - - - - 855,000 855,000 Transfers in - - 54,457 22,981 3,748 - 2,202,240 2,283,426 Total other financing sources and uses - - 54,457 22,981 3,748 - 3,057,240 3,138,426 Net change in fund balances (2,586) (15,438) 4,022 (10,837) (7,356) 120,122 (278,366) (190,439) Fund balances, beginning of year 19,911 25,944 10,844 28,052 11,616 102,859 278,366 477,592 Fund balances, end of year 17,325 $ 10,506 $ 14,866 $ 17,215 $ 4,260 $ 222,981 $ - $ 287,153 $ Special Revenue Funds VILLAGE OF PINECREST, FLORIDA 55 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 3,180 $ 3,180 $ 3,965 $ 785 $ Investment earnings 20 20 14 (6) Total revenues 3,200 3,200 3,979 785 Expenditures: Current: Public safety 6,690 6,690 6,565 125 Total expenditures 6,690 6,690 6,565 125 Excess (deficiency) of revenues over expenditures (3,490) (3,490) (2,586) 904 Fund balance appropriated 3,490 3,490 - (3,490) Net change in fund balance - $ - $ (2,586) (2,586) $ Fund balance - beginning 19,911 Fund balance - ending 17,325 $ VILLAGE OF PINECREST, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGETARY COMPARISON SCHEDULE - POLICE EDUCATION FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Budgeted Amounts 56 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Fines and forfeitures 3,500 $ 3,500 $ 15,255 $ 11,755 $ Investment earnings - - 16 16 Total revenues 3,500 3,500 15,271 11,755 Expenditures: Capital outlay: Public safety 20,000 20,000 30,709 (10,709) Total expenditures 20,000 20,000 30,709 (10,709) Excess (deficiency) of revenues over expenditures (16,500) (16,500) (15,438) 1,062 Fund balance appropriated 16,500 16,500 - (16,500) Net change in fund balance - $ - $ (15,438) (15,438) $ Fund balance - beginning 25,944 Fund balance - ending 10,506 $ VILLAGE OF PINECREST, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGETARY COMPARISON SCHEDULE - POLICE FORFEITURE FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Budgeted Amounts 57 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental revenue 42,000 $ 42,000 $ 25,618 $ (16,382) $ Investment earnings 100 100 (9) (109) Total revenues 42,100 42,100 25,609 (16,382) Expenditures: Current: Public safety 75,330 75,330 71,239 4,091 Capital outlay: Public safety - - 4,805 (4,805) Total expenditures 75,330 75,330 76,044 (714)