Accept auditor's Annual Comprehensive Financial Report for 2022-2023

415 Florida Statutes 101 Impact Fee Affidavit 102 INTRODUCTORY SECTION i 11 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, 2022 Executive Director/CEO iv Organizational Chart Village of Pinecrest, Florida v 2022-2023 Citizens Village Council Village Attorney Village Manager Police Public Safety Communications Administrative Operations Finance Building & Planning Building Planning Public Works Stormwater Utility Transportation Parks & Recreation Park Maintenance Leisure Services Community Center Pinecrest Gardens Information Technologies Administrative Services Human Resources Communications Village Clerk Advisory Committees vi INDEPENDENT AUDITORS’ REPORT 1 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM INDEPENDENT AUDITORS’ REPORT Honorable Mayor, Members of the Village Council and Village Manager Village of Pinecrest, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Pinecrest, Florida (the “Village”) as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village, as of September 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 2 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information on pages 4-14 and 60-69 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements 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. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 8950 SW 74th Court I Suite 1210 I Miami, FL 33156 T: 305.662.7272 I F: 305.662.4266 I CFLGCPA.COM Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 11, 2024, on our consideration of the Village’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Village’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Village’s internal control over financial reporting and compliance. Caballero Fierman Llerena & Garcia, LLP Caballero Fierman Llerena & Garcia, LLP Miami, Florida March 11, 2024 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary Information) VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 4 As management of the Village of Pinecrest, Florida, we offer the Village of Pinecrest’s financial statements in this narrative overview and analysis of the financial activities of the Village of Pinecrest for the fiscal year ending September 30, 2023. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. The positive economic outlook for 2023 was marred by persistent inflation, ongoing supply chain disruptions, the war in Ukraine, COVID-19 variants and ever-rising oil and gasoline prices. Many of these issues were carryovers from prior years and fortunately, 2023 did see some improvements in some of these indicators. The Federal government addressed the troubling inflationary trend by initiating interest rate hikes. The confluence of so many economic issues was worrisome, and the threat of a possible recession affecting the US economy could not be ignored. As the nation continues to maneuver through these unprecedented crises, the Village maintained a conservative and proactive stance with respect to its finances. Understanding that the national economic recovery may be stalled, and how that may affect the Village’s future finances, is essential to Pinecrest’s future economic wellbeing. The Village was able to maintain an excellent financial standing amidst so many concerns in fiscal year 2023. Financial Highlights  The assets and deferred outflow of resources for the Village of Pinecrest exceeded its liabilities at the close of the most recent fiscal year by $99,182,727 (net position).  The Village’s total net position increased by $4,021,440. The total assets grew by about $6 million (M) due to the many capital project completions. The cash and cash equivalents grew by almost $.774M, capital assets $6.3M growth was offset by a reduction in accounts receivable of almost $1M. The Village took a concentrated effort to collect on past due accounts and resulted in this reduction. The deferred outflows grew by $4M of which $2M was from pension growth and $2M in the category of Special Masters. The Special Masters growth represents the zoning department’s efforts to ensure compliance with local regulations and the resulting violations occurred when not corrected within the allotted time frame.  The liabilities increased by $5M, ($3.7M reduction in prior year unearned revenues from ARP funding for projects completed offset by a $8.8M growth in noncurrent liability debt, most of which was a $6M loan issued for capital improvements) and the deferred inflows of resources increased by about $1.2M, mostly in the growth of Special Masters.  At the close of the current fiscal year, the Village of Pinecrest’s government funds reported combined ending fund balances of $23,561,211 an increase of $3,950,105 in comparison with the prior year. Approximately 24.5% of this total amount, $5,792,901 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 revenue reported for the prior year’s $3.7M ARP (American Recovery Plan) funding that was unearned at the time. The receivables collection of $1M was another factor.  At the end of the current fiscal year, the Unassigned Fund balance for the General Fund was $5,792,901 or 16.8% of the total General Fund expenditures and transfers. It is important to note that previously, the financial reports did not delineate the Emergency Event Designation that is now included in the assigned section of the fund balance. In this fiscal year, the Village increased the Emergency Event Designation from $3 million to $5 million. This decision secures funding in the event of an emergency, such as a hurricane.  The Village of Pinecrest total bank debt increased by $4,286,410 or 19.4% during the current fiscal year. The Village issued a loan in the amount of $5.9 million to be used for $4.9 million in capital improvements at the parks and $1 million for a shared use construction document.  The Village received federal funding from the American Recovery Plan of $9,593,852. The funding was allocated as follows: $7,491,407 to the potable water project, $1,300,700 for stormwater projects, $528,852 for a capital project in Pinecrest Gardens, and $272,893 for an employee vaccine incentive to protect against the Covid-19 virus. The funds have been received and $684K is deferred revenue until the stormwater projects are completed. All other project funds have been earned and completed. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 5 Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Village of Pinecrest’s basic financial statements. The Village of Pinecrest’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statement. The government-wide financial statements are designed to provide readers with a broad overview of the Village of Pinecrest’s finances in a manner similar to a private- sector business. The statement of net position presents information on all of the Village of Pinecrest’s assets, liabilities, and deferred inflow/outflow of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village of Pinecrest is improving or deteriorating. The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus, revenues and expenses are reported in this statement for some that will only result in cash flow in the future fiscal periods (i.e. uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Village of Pinecrest that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include general government, police and public works (including highways, parks, and planning and building). The business-type activities of the Village include stormwater activities. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Village of Pinecrest, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the Village of Pinecrest are governmental and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village of Pinecrest maintains fourteen (14) individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The Village has the following governmental funds: General, Capital Projects, eight (8) Special Revenue funds and a Debt Service Fund. Only the General, Debt Service and Capital Projects funds are considered to be major funds. Data from the other funds are combined into a single, aggregated presentation. Individual data for these non-major governmental funds are provided in the form of combining statements elsewhere in this report. The Village of Pinecrest adopts an annual appropriated budget for its General Fund as well as for its other governmental funds. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 6 Proprietary Fund. The Village of Pinecrest maintains one type of proprietary fund - an Enterprise Fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village of Pinecrest uses an Enterprise Fund to account for its stormwater activities. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The Proprietary Fund financial statements provide separate information for the Stormwater Fund, which is considered a major fund of the Village of Pinecrest. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the footnotes. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Village of Pinecrest, assets and deferred outflow of resources exceeded liabilities by $99,182,727 at the close of the most recent fiscal year. By far the largest portion of the Village of Pinecrest’s net position $89,814,373 or 90.5% reflects its investment in capital assets (i.e. land, buildings, machinery, and equipment), less any related debt used to acquire those assets that are still outstanding. The Village of Pinecrest uses these capital assets to provide services to citizens. Consequently, these assets are not available for future spending. Although the Village of Pinecrest’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources because the capital assets themselves cannot be used to liquidate these liabilities. The investment in capital assets grew again this year, which is in line with the Village’s commitment to the betterment of its community through parks and infrastructure investment. 2022 2023 2022 2023 2022 2023 Current and other assets 32,151,530 $ 32,595,803 $ 4,489,863 $ 3,803,203 $ 36,641,393 $ 36,399,006 $ Capital assets 92,176,447 97,270,353 7,800,146 9,260,356 99,976,593 106,530,709 Total assets 124,327,977 129,866,156 12,290,009 13,063,559 136,617,986 142,929,715 Deferred outflows of resources 9,704,821 13,787,393 - - 9,704,821 13,787,393 Current and other liabilities 9,753,432 3,536,859 1,713,554 1,411,978 11,466,986 4,948,837 Long term bond or bank debt 30,835,338 42,488,054 - - 30,835,338 42,488,054 Total liabilities 40,588,770 46,024,913 1,713,554 1,411,978 42,302,324 47,436,891 Deferred inflows of resources 8,859,196 10,097,480 - - 8,859,196 10,097,480 Net investment in capital assets 73,240,883 80,554,017 7,800,146 9,260,356 81,041,029 89,814,373 Restricted 6,573,078 1,709,194 - - 6,573,078 1,709,194 Unrestricted 4,770,871 5,267,935 2,776,309 2,391,225 7,547,180 7,659,160 Total net position 84,584,832 $ 87,531,146 $ 10,576,455 $ 11,651,581 $ 95,161,287 $ 99,182,727 $ Governmental Activities Business-type Activities Total VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 7 Governmental activities. Governmental activities increased the Village of Pinecrest’s net assets by $2,946,314. Key elements in the changes in net position activity are as follows: 2022 2023 2022 2023 2022 2023 Revenues: Program revenues: Charges for services 11,950,546 $ 10,574,099 $ 1,255,083 $ 1,266,709 $ 13,205,629 $ 11,840,808 $ Operating grants and contributions 1,074,461 208,586 - 616,489 1,074,461 825,075 Capital grants and contributions 12,274,428 5,890,841 - - 12,274,428 5,890,841 General revenues: Taxes 18,465,108 20,656,924 - - 18,465,108 20,656,924 Other 3,077,190 4,201,591 29,253 201,659 3,106,443 4,403,250 Total Revenues 46,841,733 41,532,041 1,284,336 2,084,857 48,126,069 43,616,898 Operating expenses: General government 5,144,680 5,745,272 - - 5,144,680 5,745,272 Public safety 11,241,531 13,058,494 - - 11,241,531 13,058,494 Building, planning and zoning 3,137,115 3,330,626 - - 3,137,115 3,330,626 Parks and recreation 7,693,625 8,628,580 - - 7,693,625 8,628,580 Public works 6,770,414 7,146,539 - - 6,770,414 7,146,539 Interest 517,094 676,216 - - 517,094 676,216 Stormwater - - 771,524 1,009,731 771,524 1,009,731 Total Expenses 34,504,459 38,585,727 771,524 1,009,731 35,275,983 39,595,458 Change in net position 12,337,274 2,946,314 512,812 1,075,126 12,850,086 4,021,440 Net position - beginning as previously reported 72,066,237 84,584,832 10,063,643 10,576,455 82,129,880 95,161,287 Prior period adjustment (See Note 12) 181,321 - - - 181,321 - Net Position - beginning, as restated 72,247,558 84,584,832 10,063,643 10,576,455 82,311,201 95,161,287 Net position - ending 84,584,832 $ 87,531,146 $ 10,576,455 $ 11,651,581 $ 95,161,287 $ 99,182,727 $ Governmental Activities Business-Type Activities Totals  Revenues decreased by $4,509,171 or 9.4%, while expenses increased by $4,319,475 or 12.2% over the prior fiscal year. The reason for this variance is the $9.5M ARP funding that occurred in the prior year. Also, in 2022 the Village also received FEMA funding of about $1.5M from a hurricane claim in 2017, which was a one-time occurrence. The expenses for this grant were in 2017 and 2018. The expenses in this fiscal year increased in the police category due to increased costs from the union contract negotiation of about $2M and $1M in parks for increased programming and services, the public works expenses also increased due to increased infrastructure work.  Taxes, $20,656,924, comprised 49.7% of the total governmental revenues, $43,616,898 during the fiscal year. Most of this category is property taxes, $ 13,922,287. The millage rate remained at 2.35, however the tax base of property values increased at exponential rate. The taxable value grew about $800M or about 13% over the prior year. The net increase in ad valorem revenues was $1,750,728. Franchise and utility taxes accounted for another $5,117,884 of this total and experienced an increase of about $362K due to rate increases in the electricity.  Charges for services accounted for $10,574,099 or 25.5% of total governmental revenues. The building permitting fees decreased by $700K over the prior year. Although it is a drop from prior year, it is still over the budget figure by the same $700K. While Pinecrest does not have open space for many new housing developments, the Village experienced a boom in renovation type permitting. The parks and recreation line also experienced an increase of about $665K as programming demands continue to grow. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 8  Operating and capital grants and contributions accounted for $6,099,427 or 14.7% of total governmental revenues. This line decreased by close to $7.3M. The drop is because in the prior year, the Village received a one-time $9.5M grant from the American Recovery Plan, of which $3.7M was incurred in the current fiscal year almost entirely for capital projects, such as the potable water project. This federal grant was a one-time event to aid the community in times of an emergency. Another $500,000 was earned but not received from the county in a matching grant for this same water project. Another $678K was received for Pinecrest Gardens, $213 for operating expenses and $465K for capital improvements at the site. This latter grant helped to build an ADA and sensory inclusive recreational park. Revenues by Source – Governmental Activities - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Charges Oper. Grants Cap. Grants Taxes Intergov. Other VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 9 Expenses and Program Revenues – Governmental Activities Financial Analysis of the Government’s Funds The Village of Pinecrest used fund accounting to ensure and demonstrate compliance with finance related requirements. Governmental funds. The focus of the Village of Pinecrest’s governmental funds is to provide information on near term inflow, outflow and balances of spendable resources. Such information is useful in assessing the Village of Pinecrest’s financing requirements. In particular, the Unassigned Fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Village of Pinecrest’s governmental funds (GAAP basis) reported combined ending fund balances of $23,561,211 an increase of $3,950,106 or 20.1% in comparison with the prior year, $19,611,105. Approximately 24.5% of this total amount, $5,792,901, 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 grants received as well as the unparalleled growth in the residential renovation and market value and park attendance coupled with a managed growth in expenses to continue the investment in infrastructure and the community. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Gen Gov Pub Safety B&P Parks & Rec. Public Works Int -Debt Expenses Revenue VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 10 The General Fund had a minor increase of $201,729. This was accomplished through the excess of revenues over the expenses. Pandemic revenues of about $146,505 from prior year expenditures, the increased permitting fees due to the renovation boom of our area and an increase in community interest in park recreation were coupled with the challenges of unfilled personnel positions, especially in the police and parks departments. Wage increase pressures continue in the effort to attract personnel. The Capital Projects Fund increased $3,473,104 as capital improvements are planned with the $5.9M note proceeds to be used towards various park improvements and a shared use project. The Debt Service Fund traditionally had a zero- fund balance because the general fund transferred the exact amount needed for both principal and interest payments each year. However, a special assessment district was created to cover the costs of the potable water not funded by the ARP grant. This assessment is for a 25-year period. The tax bill of 2023 was year 2 of 25 of the assessment. The Debt Service Fund increased by $27,143 reflecting the payments received by residents that have not yet been paid out on the debt. The special revenue assessments will be used to pay the $4.3M loan taken in fiscal year 2022 ($3,496,768 potable water/$803,232 capital project). The Non-major governmental funds increased by $248,129. The changes in fund balance are as follows: Transportation fund increased $93,298 as funds are being accumulated to fund future planned infrastructure projects, the Police Education Fund decreased $7,976 as the revenues received were less than the projects incurred this year, and the Police Forfeiture Fund has zero balance as the Village is no longer participating in the programs that contribute to this fund, the three 911 funds combined decreased $33,141 due to less funding from the county for the dispatch operation, and the Impact Fees Fund decreased by $92,519 due to capital projects at the police department, parks and municipal center. The largest increase is in the CITT Public Transit Fund of $288,469. The CITT increase was due to a due to project delays from scarcity of materials. However, those projects are planned and will move forward. The General Fund is the chief operating fund of the Village of Pinecrest. At the end of the current fiscal year, the Unassigned Fund balance of the General Fund was $5,792,901. 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 16.8% of total General Fund expenditures including transfers and represents 50.6% of the total fund balance.  The unassigned fund balance of the Village of Pinecrest’s General Fund decreased by $1,244,118 when the prior year is adjusted for the emergency event assignment. Starting in fiscal year 2023, the Village is showing the emergency event amount as an assigned part of the general fund. Therefore, the fiscal year 2022 unassigned amount of $4,548,783 would be $3M less. In order to make a comparison of equal parts, the emergency fund of fiscal year 2023 is $5M versus the 2022 amount of $3M. This increase in the emergency event designation of $2M is just about the amount of the aforementioned drop of $1,244,118.  The Police expenditures were under budget by $278,181 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, vehicle patrol vehicles, and training simulators.  General Government departments combined were under budget by $74,908. The savings were mostly attributable to the attorney budget under by $38,430 for less activity than planned, the transfer of a Village Clerk ADA position mid-year of $14,380 and another $9,878 of sick pay out at separation that did not occur.  Building and Planning was under budget by $194,280. The department was undergoing a has experienced a high workload and has been trying to fill open positions to meet the growth in demand.  Parks and Recreation was under $114,351. While budget amendments were made to provide for the increased demand in summer camps and programming, many planned repairs and purchases were delayed due to supply chain issues. $20,455 will be carried over into 2024 for the completion of a storage facility and $73,831 for exhibits that will begin in the next year. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 11 Proprietary Fund. The Stormwater Fund accounts for revenues collected for the maintenance of the stormwater collection function in the Village. The Village maintains the canals and underground pipes and there are operational costs associated with treating the water. This year the unrestricted net position went from $2,776,309 to $2,391,225, a decrease of $385,084. This decrease reflects the fact that more funds were spent on capital improvements than received this year. Any excess funds will be used for future year capital improvements, which are depreciated over many years. A portion of the ARP funding, $1,300,700, was allocated to the stormwater funds. Of this amount $616,489 of the projected was completed and $684,211 was recorded an unearned revenue until the projects are expended. General Fund Budget Highlights The budget to actual variances in the General Fund were:  Total Taxes, $ 835,821. $484,042 of the over budgeted revenues is due to rate increases that resulted in higher utility fees, $178,357 is from a higher collection rate for the property. The communication services tax is also over due to an update in the addresses that pertain to the Village of $36,425.  Licenses and Permits, $724,181. $769,728 of the over budgeted revenues is due to an increase in building permitting fees. While those revenues decreased by $711,446 compared to the prior fiscal year, it was still more than expected. 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.  Charges for Services, $741,749. The amount over the budget is due to a larger than expected demand for recreational programs and activities at the parks. The demand for programming in the parks, Community Center and Pinecrest Gardens grew more than planned and offset the costs of increased contract services for the new offerings.  Intergovernmental revenue, $387,336. The overage was a result of increased spending coupled with higher prices due to inflation. The Sales tax receipts were $287K and state revenue sharing was over by $95K for these reasons. During the year, actual revenues in were more than actual expenditures, increasing the fund balance $5,216,710 or $ 201,729 when including the transfers in and out. This increased the general fund balance from $11,227,880 to $11,429,609. The amended budget had planned for a fund appropriation of $6,200. However, due to the excess of revenues over expenditures, the fund increase was $201,729. The following highlights the reason for the budget amendments in the General Fund:  Union contract negotiations that resulted in the introduction of take-home vehicles, $744,085, and wage increases of $466,820  Village Hall Monument Sign, funded by third party insurance, $93,000  Fire Department feasibility study, $44,995  Police Department capital improvements, funded by a donation, $65,000  Pinecrest Gardens upper garden work and terrace renovation, funded by state grants, $585,520  Potable Water administration fees for the potable water project, $194,000 and pipe price increase $471,000  Impact fee capital projects, funded through the revenues brought in, $220,705  Sidewalk fund transferred to capital funds, $129,450  Fiscal year 2024 budget decision to allocate excess fiscal year 2023 funds to those planned budgetary items such as police vehicles, $474,600, IT equipment, $127,523 and $221,730 to purchase equipment necessary to bring the landscaping service inhouse.  Contract service increases supported by excess revenues: Parks $20,000, Community Center $155,560, and Pinecrest Gardens, $33,000.  Pinecrest Gardens sick pay out for retirement and change in director personnel with a pay increase, $ 101,000  911 maintenance plan due to delay in County takeover of the service, $8,615 VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 12  Coral Pine Construction Drawings, bids came in higher than anticipated, $190,715  Pinecrest Gardens staff used to document the Plant Inventory, funded through a grant, $7,008  General Government repairs to elevator, $53,055, $21,655 for printing of increase distribution of Village newsletter, and increased cleaning activity, $16,565  Electricity rate increases, $20,845  General and Liability insurance increases due to increase in coverage, $54,400  Flagler Grove fence project required enhanced safety measures due to the growth of the lacrosse program, $46,000  Coral Pine resurfacing of tennis courts to align with the demand for pickle ball, $17,855  Kendall Drive Crossing upgrade for safety measures, $25,000  General Government professional services, $74,400 to enhance the communications divisions community outreach and information campaign  Lighting upgrades at a roundabout for safety measures, $300,000  Maintenance map of $10,000 for a new pocket park  Plumbing and roof repairs at Pinecrest Gardens, $16,905 Capital Asset and Debt Administration Capital assets. The Village of Pinecrest’s investment in capital assets for its governmental activities as of September 30, 2023 amounts to $97,270,353 (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 of Pinecrest’s investment in capital assets for the current fiscal year was 6.5%. Major capital asset events during the current fiscal year included the following:  Stormwater improvements  Renovations and improvements at Pinecrest Gardens, the Community Center and various parks.  Village-wide road improvement  Police vehicles and equipment  Building and Planning Trak-it Migration for online permitting  Construction in Progress  Potable Water Project  Police License Plate Reader  Kendall Drive Shared Use Construction Documents  Pinecrest Gardens: Lower Garden Path Lighting and Terrace and Ramp renovations, and Inspiration Center AV equipment  Suniland LED light poles  Coral Pine Phase 2 Park Improvement  Flagler Grove Storage Facility 2022 2023 2022 2023 2022 2023 General government 5,205,309 $ 5,053,229 $ - $ - $ 5,205,307 $ 5,053,229 $ Public safety 1,213,188 2,157,146 - - 1,213,188 2,157,146 Building and planning 177,339 331,228 - - 177,339 331,228 Parks 51,334,041 51,721,909 - - 51,334,041 51,721,909 Public works 34,246,572 38,006,841 - - 34,246,572 38,006,841 Stormwater - - 7,800,146 9,260,356 7,800,146 9,260,356 Totals 92,176,449 $ 97,270,353 $ 7,800,146 $ 9,260,356 $ 99,976,595 $ 106,530,709 $ Governmental Activities Business-type Activities Total Additional information on the Village of Pinecrest’s capital assets can be found in Note 4. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 13 Long-term debt at the end of the fiscal year, the Village of Pinecrest had total bank debt outstanding of $26,403,255. Village of Pinecrest’s Outstanding Debt Governmental Activities 2022 2023 Revenue Bonds $22,116,845 $26,403,255 The Village of Pinecrest increased its total debt by $4,286,410 or 19.4% during the current fiscal year. There are five loan issues outstanding: Community Center/Coral Pine Park for $2,631,200 which matures in FY 2029, a Capital Improvements loan with an outstanding balance of $1,436,800 which matures in FY 2028, another Capital Improvements loan with an outstanding balance of $7,350,811 that matures in FY 2041, and a Refund, land purchase and Capital Improvements loan of $5,019,377 that matures in FY 2036, A Potable Water and Capital Note was issued in the current year in the amount of $4,193,215 matures in FY36 and is funded in large portion by an special assessment to those homes benefitting from the potable water project. The Village issued a 2023 capital improvement loan with an outstanding balance of $5,771,852 which matures in fiscal year 2042. All of the loans are currently bank loans, however, in January of 2024, the Village issued a Series 2024 bond that earned a AAA rating from S&P Global, a testament to the Village’s financial strength. Additional information on the Village of Pinecrest’s long-term debt can be found in Note 6. Economic Factors and Next Year’s Budgets and Rates  The concerns over The Covid-19 pandemic have ceased to that of an endemic status. The fiscal year 2023 budget was made with an expectation of that the Village will return to normal operation.  Property values in the Village continue to grow and have allowed the Village to keep one of the lowest millage rates in the county, at 2.35, the same as the prior fiscal year.  The job market is tight and the ability to fill positions, especially in the parks and recreation, is country wide. The Village is researching ways to ensure competitive fringes and offerings to attract prospective employees.  The increased inflationary trend is of concern, but the Village is aggressive in securing pricing that is within our budget plans.  Interest rate increases will affect the project costs and future loan issues. The Village will work to ensure the financial effects are considered and managed as much as possible. During the current fiscal year, the unassigned fund balance for general governmental funds was $5,792,901, which allows the Village financial flexibility. The Village also has $5 million assigned for an Emergency Event, providing for an extra measure of safety and conservatism. The Village also has $9,475,454 of fund balance in the Capital Projects Fund that is either restricted or assigned for various capital improvement projects. VILLAGE OF PINECREST, FLORIDA MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2023 14 Requests for Information This financial report is designed to provide a general overview of the Village of Pinecrest’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Department of Finance, 12645 Pinecrest Parkway, Pinecrest, Florida 33156-5931 or emailed to finance@pinecrest-fl.gov. BASIC FINANCIAL STATEMENTS VILLAGE OF PINECREST, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2023 Governmental Activities Business-Type Activities Total ASSETS Cash and cash equivalents 25,045,582 $ 3,765,031 $ 28,810,613 $ Accounts receivable - net 7,521,050 38,172 7,559,222 Prepaid Items 29,171 - 29,171 Capital assets not being depreciated 34,880,584 - 34,880,584 Capital assets being depreciated, net 62,389,769 9,260,356 71,650,125 Total assets 129,866,156 13,063,559 142,929,715 DEFERRED OUTFLOWS OF RESOURCES Other post employment benefits 82,022 - 82,022 Pension 4,804,887 - 4,804,887 Special Master 8,900,474 - 8,900,474 Total deferred outflows of resources 13,787,383 - 13,787,383 LIABILITIES Accounts payable and accrued liabilities 3,480,891 410,484 3,891,375 Accrued interest 13,597 - 13,597 Unearned revenues 42,371 1,001,494 1,043,865 Noncurrent liabilities: Due within one year 3,155,098 - 3,155,098 Due in more than one year 39,332,956 - 39,332,956 Total liabilities 46,024,913 1,411,978 47,436,891 DEFERRED INFLOWS OF RESOURCES Other post employment benefits 157,606 - 157,606 Pension 1,243,094 - 1,243,094 Special Master 8,696,780 - 8,696,780 Total deferred inflows of resources 10,097,480 - 10,097,480 NET POSITION Net investment in capital assets 80,554,017 9,260,356 89,814,373 Restricted for: Public safety 75,255 - 75,255 Parks and recreation 22,829 - 22,829 Transportation 1,611,110 - 1,611,110 Unrestricted 5,267,935 2,391,225 7,659,160 Total net position 87,531,146 $ 11,651,581 $ 99,182,727 $ The notes to the basic financial statements are an integral part of these financial statements. 15 VILLAGE OF PINECREST, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Net Revenue (Expense) and Changes in Net Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-Type Activities Total Governmental activities General government 5,745,271 $ 649,613 $ 83,345 $ 465,543 $ (4,546,770) $ - $ (4,546,770) $ Police 13,058,494 5,321,091 80,571 121,258 (7,535,574) - (7,535,574) Building, planning and zoning 3,330,626 - - - (3,330,626) - (3,330,626) Public works 7,146,539 7,876 44,670 5,055,462 (2,038,531) - (2,038,531) Parks and recreation 8,628,580 4,595,519 - 248,578 (3,784,483) - (3,784,483) Interest on long-term debt 676,216 - - - (676,216) - (676,216) Total governmental activities 38,585,726 $ 10,574,099 $ 208,586 $ 5,890,841 $ (21,912,200) - (21,912,200) Business-type activities Stormwater 1,009,732 1,266,709 616,489 - - 873,466 873,466 Total business-type activities 1,009,732 1,266,709 616,489 - - 873,466 873,466 General revenues: Taxes: Property taxes 13,922,287 - 13,922,287 Franchise fees, based on gross receipts 2,033,842 - 2,033,842 Utility taxes 3,084,042 - 3,084,042 Communication service tax 962,960 - 962,960 Transportation tax 510,638 - 510,638 Business tax 143,155 - 143,155 Intergovernmental (unrestricted) 2,732,904 - 2,732,904 Investment income (unrestricted) 1,186,004 201,631 1,387,635 Miscellaneous 282,683 29 282,712 Total general revenues 24,858,515 201,660 25,060,175 Change in net position 2,946,315 1,075,126 4,021,441 Net position - beginning 84,584,831 10,576,455 95,161,286 Net position - ending 87,531,146 $ 11,651,581 $ 99,182,727 $ Program Revenue The notes to the basic financial statements are an integral part of these financial statements. 16 VILLAGE OF PINECREST, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 Major funds Nonmajor Total General Debt Service Capital Projects Governmental Governmental Fund Fund Fund Funds Funds ASSETS Cash and cash equivalents 12,441,738 $ 534,965 $ 10,189,099 $ 1,879,780 $ 25,045,582 $ Receivables 1,134,554 5,511,330 500,000 375,166 7,521,050 Prepaid items 29,171 - - - 29,171 Total assets 13,605,463 6,046,295 10,689,099 2,254,946 32,595,803 DEFERRED OUTFLOWS Special masters violations 8,900,474 - - - 8,900,474 Total deferred outflows of resources 8,900,474 - - - 8,900,474 Total assets and deferred outflows of resources 22,505,937 $ 6,046,295 $ 10,689,099 $ 2,254,946 $ 41,496,277 $ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 499,406 $ 73,591 $ 1,213,645 $ 60,172 $ 1,846,814 $ Accrued liabilities 1,634,077 - - - 1,634,077 Unearned revenue 42,371 - - - 42,371 Total liabilities 2,175,854 73,591 1,213,645 60,172 3,523,262 Deferred inflows of resources: Special masters violations 8,900,474 - - - 8,900,474 Potable water special assessment - 5,511,330 - - 5,511,330 Total deferred inflows of resources 8,900,474 5,511,330 - - 14,411,804 Fund balances: Nonspendable: Prepaid items 29,171 - - - 29,171 Restricted: Transportation - - - 1,611,110 1,611,110 Public safety - - - 75,255 75,255 General government - - - 102,264 102,264 Stormwater - - - 383,316 383,316 Parks - - - 22,829 22,829 Special assessment debt service - 461,374 - - 461,374 Capital improvements - - 4,626,433 - 4,626,433 Committed: Capital improvements - - 4,431,689 - 4,431,689 Assigned: Emergency event 5,000,000 - - 5,000,000 Health care 317,805 317,805 Capital improvements 289,732 417,332 707,064 Unassigned 5,792,901 - - - 5,792,901 Total fund balances 11,429,609 461,374 9,475,454 2,194,774 23,561,211 Total liabilities and fund balances 22,505,937 $ 6,046,295 $ 10,689,099 $ 2,254,946 $ 41,496,277 $ The notes to the basic financial statements are an integral part of these financial statements. 17 Fund balances - total governmental funds (see page 17) 23,561,211 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds: Governmental capital assets 260,352,647 Less accumulated depreciation (163,082,294) 97,270,353 Deferred outflows related to OPEB 82,022 Deferred inflows related to OPEB (157,606) Deferred outflows related to pension 4,804,887 Deferred inflows related to pension (1,243,094) 3,486,209 Bonds payable (26,403,255) OPEB liability (219,903) Net pension liability (14,215,722) Accrued interest payable (13,597) Compensated absences (1,649,174) (42,501,651) Revenue collected outside of the period of availability is not available to pay for current period expenditures and therefore, is a deferred inflow in the funds. 5,715,024 Net position of governmental activities (see page 15) 87,531,146 $ RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS VILLAGE OF PINECREST, FLORIDA Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the governmental funds. Amounts reported for governmental activities in the statement of net position are different as a result of: Deferred inflows/outflows of resources in the statement of net position will be recognized in future periods. SEPTEMBER 30, 2023 TO THE STATEMENT OF NET POSITION The notes to the basic financial statements are an integral part of these financial statements. 18 VILLAGE OF PINECREST, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Major Funds Nonmajor Total General Debt Service Capital Projects Governmental Governmental Fund Fund Fund Funds Funds REVENUES Taxes 20,146,286 $ - $ - $ 510,638 $ 20,656,924 $ Licenses and permts 3,800,681 - - 175,537 3,976,218 Intergovernmental 3,095,056 - 4,022,571 1,314,130 8,431,757 Charges for services 5,392,924 - - - 5,392,924 Fines and forfeitures 1,372,828 - - 2,452 1,375,280 Special assessments revenues - 211,663 - - 211,663 Investment earnings 716,521 20,963 368,237 80,283 1,186,004 Miscellaneous 200,271 - 93,000 8,000 301,271 Total revenues 34,724,567 232,626 4,483,808 2,091,040 41,532,041 EXPENDITURES Current: General government 5,225,743 - - - 5,225,743 Public safety 11,483,453 - - 193,780 11,677,233 Public works 984,771 - - 802,583 1,787,354 Parks and recreation 6,978,659 - - - 6,978,659 Buildings, planning and zoning 3,067,144 - - - 3,067,144 Debt Service: Principal - 1,565,968 - - 1,565,968 Interest and other charges - 695,741 41,877 - 737,618 Capital outlay 1,768,087 - 9,636,343 990,163 12,394,593 Total expenditures 29,507,857 2,261,709 9,678,220 1,986,526 43,434,312 Excess (deficiency) of revenues over expenditures 5,216,710 (2,029,083) (5,194,412) 104,514 (1,902,271) OTHER FINANCING SOURCES (USES) Proceeds from long-term debt, net - - 5,852,377 - 5,852,377 Transfers in - 2,056,226 2,815,140 143,615 5,014,981 Transfers out (5,014,981) - - - (5,014,981) Total other financing sources and uses (5,014,981) 2,056,226 8,667,517 143,615 5,852,377 Net change in fund balances 201,729 27,143 3,473,105 248,129 3,950,106 Fund balances - beginning 11,227,880 434,231 6,002,349 1,946,645 19,611,105 Fund balances - ending 11,429,609 $ 461,374 $ 9,475,454 $ 2,194,774 $ 23,561,211 $ The notes to the basic financial statements are an integral part of these financial statements. 19 VILLAGE OF PINECREST, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Net change in fund balances - total government funds (see page 19) 3,950,106 $ Amounts reported for governmental activities in the statement of activities are different because: Expenditures for capital outlay 12,394,593 Less current year depreciation (6,992,820) Net adjustment 5,401,773 Capital outlays not meeting threshold for capitalization (307,867) Net adjustments (307,867) Bond principal payments 1,565,968 Bond proceeds (5,852,377) (4,286,409) Certain changes related to pension and other post employment benefits (OPEB) assets and liabilities are not reported in the net change in the governmental funds: Change in deferred outflows of resources relating to pension 2,258,111 Change in deferred outflows of resources relating to other post employment benefits (OPEB) (9,950) Change in deferred inflows of resources relating to pensions 414,753 Change in deferred inflows of resources relating to other post employment benefits (OPEB) (22,330) 2,640,584 Change in net pension liability (4,492,223) Change in compensated absences (41,697) Change in OPEB liability 20,646 Change in accrued interest payable 61,402 (4,451,872) Change in net position of governmental activities (see page 16) 2,946,315 $ Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. The net effect of various transactions involving capital assets (i.e., sales, trade-ins and donations) is to increase (decrease) net position. Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives. The issuance of long term debt (e.g., bonds, leases) provides current financial debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position resources to governmental funds, while the repayment of the principal of long term. The notes to the basic financial statements are an integral part of these financial statements. 20 VILLAGE OF PINECREST, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUND - STORMWATER SEPTEMBER 30, 2023 ASSETS Current assets: Cash and cash equivalents 3,765,031 $ Accounts receivable 38,172 Total current assets 3,803,203 Non-current assets: Capital assets: Capital assets being depreciated, net 9,260,356 Total non-current assets 9,260,356 Total assets 13,063,559 $ LIABILITIES Current liabilities: Accounts payable and accrued liabilities 410,484 Unearned revenue 1,001,494 Total current liabilities 1,411,978 Total liabilities 1,411,978 NET POSITION Net investment in capital assets 9,260,356 Unrestricted 2,391,225 Total net position 11,651,581 $ See notes to basic financial statements. 21 VILLAGE OF PINECREST, FLORIDA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUND - STORMWATER FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 OPERATING REVENUES Stormwater fees 1,266,709 $ Intergovernmental 616,489 Total operating revenues 1,883,198 OPERATING EXPENSES Operating, administrative and maintenance 804,992 Depreciation 204,740 Total operating expenses 1,009,732 Operating income 873,466 NON-OPERATING REVENUES (EXPENSES) Investment earnings 201,631 Miscellaneous 29 Total non-operating revenues (expenses) 201,660 Income before contributions and transfers 1,075,126 Change in net position 1,075,126 Total net position - beginning 10,576,455 Total net position - ending 11,651,581 $ See notes to basic financial statements. 22 Cash flows from operating activities: Cash received from customers, governments and other funds 1,224,906 $ Cash paid to suppliers (451,760) Net cash provided by operating activities 773,146 Cash flows from capital related financing activities: Acquisition and construction of capital assets (1,664,950) Net cash used in capital and related financing activities (1,664,950) Cash flows from investing activities: Interest and other income 201,660 Net cash provided by investing activities 201,660 Net decrease in cash and cash equivalents (690,144) Cash and cash equivalents, October 1 4,455,175 Cash and cash equivalents, September 30 3,765,031 $ Reconciliation of operating income to net cash provided by operating activities: Operating income 873,466 $ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 204,740 Change in assets and liabilities: (Increase) in: Accounts receivable (3,484) Increase (decrease) in: Accounts payable and accrued liabilities 353,232 Unearned revenue (654,808) Total adjustments (100,320) Net cash provided by operating activities 773,146 $ FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 VILLAGE OF PINECREST, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUND - STORMWATER See notes to basic financial statements. 23 NOTES TO %$6,& FINANCIAL STATEMENTS VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 24 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Village of Pinecrest (the Village) was incorporated March 12, 1996, pursuant to Ordinance 95-207 adopted by the Miami-Dade Board of County Commissioners November 12, 1995. The Village occupies a land area of eight square miles and serves a population of 18,419. The Village operates under a Council-Manager form of government and provides the following services: public safety (police), public works, building, planning and zoning, code enforcement, stormwater management, and parks and recreation. The basic financial statements of the Village have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to governmental units, which are generally accepted in the United States. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental and financial reporting principles. Significant accounting and reporting policies and practices of the Village are described below. A. Financial Reporting Entity The financial statements were prepared in accordance with the GASB, the reporting entity, which establishes standards for defining and reporting on the financial reporting entity. The definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the Village, organizations for which the Village is financially accountable and other organizations for which the nature and significance of their relationship with the Village are such that exclusion would cause the reporting entity’s financials statements to be misleading or incomplete. The Village is financially accountable for a component unit if it appoints a voting majority of the organization’s governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the Village. Based upon the application of these criteria, there were no organizations that met the criteria described above. B. Government-Wide and Fund Financial Statements The basic financial statements include both government-wide (based on the Village as a whole) and fund financial statements. The government-wide financial statements (i.e. the statements of net position and the statement of activities) report information on all activities of the Village. The effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and the proprietary fund. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting is used for the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 25 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the Village. The Village reports the following major governmental funds: General Fund – This fund is the Village’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Debt Service Fund – The debt service fund is used to accumulate resources and distribute principal, interest and bond related issuance costs on long-term debt. Capital Projects Fund – This fund receives transfers from the general fund as well as grants and accounts for purchases of land and improvements to the parks and buildings in the community. The Village reports one major proprietary fund: Stormwater Fund – This fund (an enterprise fund) accounts for the stormwater control activities of the community. Funds are received from business and residential users and used to maintain the stormwater collection system. Additionally, the Village reports other special revenue funds and a debt service fund. As a general rule, the effect of inter-fund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the governments various functions. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. General revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the stormwater fund are charges to business and residential customers for stormwater system maintenance. Operating expenses report on the costs to maintain the stormwater system, the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses. D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance 1. Deposits and Investments – Cash and cash equivalents, which are cash and short-term investments with maturities of three months or less, include cash on hand, a repurchase agreement and investments with the State Board of Administration Investment Pool. Investments are reported at fair value. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 26 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 2. Interfund transactions – As the Village does not have any lending/borrowing arrangements between funds, all outstanding balances between funds are reported as "due to/from other funds". All amounts receivable from or payable to other funds are to be settled with expendable, available financial resources. Transactions which are recurring annual transfers between two or more funds are recorded as transfers in and out. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 3. Receivables – Receivables include amounts due from other governments and others for services provided by the Village. Receivables, including special assessments, are recorded when the related service is provided. 4. Restricted assets – Proceeds from impact fees, CITT surtax and 2nd local option gas taxes are classified as restricted in various special revenue funds since these resources are specifically earmarked for restricted purposes including law enforcement, transportation and recreational eligible items. 5. Prepaid items – Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. These costs are accounted for under the consumption method. 6. Capital assets – The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets of the Village are depreciated using the straight-line method over the following estimated useful lives: Buildings 40 years Improvements 15 years Equipment: Cars 5 years Trucks 10 years Equipment 5 years Computer equipment 3 years Computer software 7 years Infrastructure: Roads 25 years Stormwater system 50 years Sidewalks 20 years 7. Deferred outflows/deferred inflows of resources – In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net 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). VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 27 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 7. Deferred outflows/deferred inflows of resources (Continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net 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, 2023 is approximately $8,900,474. 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, 2023 28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 10. Property taxes – Property taxes for the current year were assessed and collected by Miami-Dade County and subsequently remitted to the Village. Property taxes are assessed as of January 1 each year and are first billed (levied) and due the following November 1. Under Florida law, the assessment of all properties and the collection of all county, municipal, school board and special district property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws for the state regulating tax assessments are also designed to assure a consistent property valuation method statewide. State statutes permit municipalities to levy property taxes at a rate of up to 10 mills ($10 per $1,000 of assessed taxable valuation). The millage rate assessed by the Village for the year ended September 30, 2023, was 2.350 mills. The tax levy of the Village is established by the Village Council prior to October 1 of each year, and the County Property Appraiser incorporates the millage into the tax levy, which includes Miami-Dade County, Miami-Dade County School Board and special taxing districts. All property is reassessed according to its fair market value as of January 1 of each year. Each assessment roll is submitted to the Executive Director of the State Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of State Statutes. All real and tangible personal property taxes are due and payable on November 1, each year or as soon as practicable thereafter as the assessment roll is certified by the County Property Appraiser. Miami- Dade County mails to each property owner on the assessment roll a notice of the taxes due and Miami- Dade County also collects the taxes for the Village. Taxes may be paid upon receipt of such notice from Miami-Dade County, with discounts at the rate of 4% if paid in the month of November, 3% if paid in the month of December, 2% if paid in the month of January and 1% if paid in the month of February. Taxes paid during the month of March are without discount, and all unpaid taxes on real and tangible personal property become delinquent and liens are placed on April 1 of the year following the year in which taxes were assessed. Procedures for the collection of delinquent taxes by Miami-Dade County are provided for in the laws of Florida. There were no material delinquent property taxes at September 30, 2023. 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, 2023 29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 13. Net position (Continued) Restricted net position – this category consists of all net position that has been restricted for general use by external parties (creditors, grantors, contributors, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. Unrestricted net position – consists of the net position not meeting the definition of either of the other two components. Restricted consists of net position with constraints placed on their use by external parties (creditors, grantors, contributors, or laws and regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. Unrestricted indicates that portion of net position that is available to fund future operations. Net position flow assumption – Sometimes the Village will fund outlays for a particular purpose from both restricted (i.e. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. It is the Village's policy to consider restricted net position to have been depleted before unrestricted net position is applied. 14. Fund Balance – As of September 30, 2023, fund balances of the governmental fund financial statements are classified as follows: Fund balances of the governmental funds are classified as follows: Non-spendable – amounts that cannot be spent either because they are in non-spendable form or because they are legally or contractually required to be maintained intact. Restricted – amounts that can be spent only for specific purposes because of constitutional provisions, charter requirements or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed – amounts that can be used only for specific purposes determined by a formal action of Village Council. Village Council is the highest level of decision making authority for the Village. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by Village Council. Ordinances and resolutions are equally changing to binding formal actions of the Village Council. Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the Village’s adopted policy, only Village Council may assign amounts for specific purposes. Unassigned – all other spendable amounts. The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in government funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balance (Continued) 14. Fund Balance (Continued) Fund balance flow assumptions – Sometimes the Village will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Village’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund balance policy – The Village of Pinecrest will maintain a minimum unassigned fund balance in the General Fund of 10% of budgeted expenditures and transfers out. The Village shall strive to keep an additional unassigned fund balance for extraordinary expenditures and mitigation due to the Village being located in a hurricane zone. That amount is to be determined each year by Council during the budget process. 15. Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Although these estimates are based on management's knowledge of current events and actions, actual results may ultimately differ from those estimates. NOTE 2 – DEPOSITS AND INVESTMENTS Deposits In addition to insurance provided by the Federal Depository Insurance Corporation, all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or banking institution eligible collateral. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Investments The Village invests surplus funds in an external investment pool, the Local Government Surplus Funds Trust Fund (Florida PRIME). The State Pool is administered by the Florida State Board of Administration (SBA), who provides regulatory oversight. The Florida Prime has adopted operating procedures consistent with the requirement for 2a-7 like fund. The Village’s investment in the Florida PRIME is reported at amortized cost. The fair value of the position in the pool is equal to the value of the pool shares. These investments are exempt from fair value hierarchy level disclosure. The Village had the following investments as of September 30, 2023: Investment Fair Value Florida Prime 12,004,356 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 31 NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) Credit risk The Village has an investment policy that emphasizes the safety of principal while maintaining adequate liquidity to meet its needs. Investments are limited to the highest ratings by two of the nationally recognized statistical rating organizations - Nationally Recognized Statistical Rating Organization (NRSRO) and Standard and Poor’s and Moody’s Investment Services. The Florida PRIME is rated AAAm by Standard and Poor’s. The weighted average maturity (WAM) of the securities held in Florida PRIME is 35 days. The weighted average life (WAL) of Florida PRIME is 75 days. Redemption gates With regard to redemption gates for Florida PRIME, Chapter 218.409(8)(a), Florida Statutes, states, “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, and the Investment Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.” Liquidity fees With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2023, there were no redemption fees, maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. Concentration of credit risk GASB Statement 40 requires disclosure when the percent is 5% or more in any one issuer. External investment pools, such as Florida PRIME, are exempt from Concentration and Interest Rate Risk disclosures. The Village does not maintain any further investments for disclosure. Interest rate risk In accordance with our investment policy, the Village manages its exposure to declines in fair values by investing in conservative investments with the emphasis on safety of principal. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 32 NOTE 3 – RECEIVABLES As of September 30, 2023, receivables for the Village's individual major and nonmajor funds, in the aggregate including applicable allowances for uncollectible accounts, are as follows: Nonmajor General Debt Service Capital Projects Governmental Stormwater Fund Fund Fund Funds Fund Total Receivables Potable water special assessment $ - $ 5,511,330 $ - $ - $ - 5,511,330 $ Intergovernmental 229,358 500,000 375,166 - 1,104,524 Franchise and utility 828,275 - - - - 828,275 Ad-valorem taxes 32,771 - - - - 32,771 Fines 16,918 - - - - 16,918 Accounts - - - - 38,172 38,172 Other 34,871 - - - - 34,871 Allowance for uncollectible accounts (7,639) - - - - (7,639) 1,134,554 $ 5,511,330 $ 500,000 $ 375,166 $ 38,172 $ 7,559,222 $ Total unearned revenues as of September 30, 2023, are as follows: Occupational taxes collected in advance 38,166 $ Sponsorships collected in advance 4,205 Stormwater utility charges collected in advance 1,001,494 1,043,865 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 33 NOTE 4 – CAPITAL ASSETS Capital asset activity for the year ended September 30, 2023, was as follows: Additions Deletions Governmental activities: Capital assets, not being depreciated: Land 20,782,165 $ - $ - $ 20,782,165 $ Construction in progress 13,001,622 8,934,015 (7,837,218) 14,098,419 Total capital assets, not being depreciated 33,783,787 8,934,015 (7,837,218) 34,880,584 Capital assets, being depreciated: Buildings 28,270,683 - - 28,270,683 Improvements other than buildings 14,157,249 8,649,972 - 22,807,221 Machinery and equipment 7,216,613 1,405,094 - 8,621,707 Computer software 536,084 221,256 - 757,340 Infrastructure 164,301,505 713,607 - 165,015,112 Total capital assets, being depreciated 214,482,134 10,989,929 - 225,472,063 Less accumulated depreciation for: Buildings (8,197,177) (665,980) - (8,863,157) Improvements other than buildings (7,039,457) (730,346) - (7,769,803) Machinery and equipment (5,183,363) (582,149) - (5,765,512) Computer software (275,341) (41,338) - (316,679) Infrastructure (135,394,136) (4,973,007) - (140,367,143) Total accumulated depreciation (156,089,474) (6,992,820) - (163,082,294) Total capital assets, being depreciated, net 58,392,660 3,997,109 - 62,389,769 Governmental activities capital assets, net 92,176,447 $ 12,931,124 $ (7,837,218) $ 97,270,353 $ Beginning Balance Ending Balance Additions Deletions Business-type activities: Capital assets, being depreciated: Infrastructure 11,005,592 $ 1,664,950 $ - $ 12,670,542 $ Total capital assets being depreciated 11,005,592 1,664,950 - 12,670,542 Less accumulated depreciation for: Infrastructure (3,205,446) (204,740) - (3,410,186) Total accumulated depreciation (3,205,446) (204,740) - (3,410,186) Total capital assets, being depreciated, net 7,800,146 1,460,210 - 9,260,356 Business-type activities capital assets, net 7,800,146 $ 1,460,210 $ - $ 9,260,356 $ Beginning Balance Ending Balance VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 34 NOTE 4 – CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 247,166 $ Public safety 381,083 Public works 5,011,766 Building and planning 33,906 Parks & recreation 1,318,899 Total depreciation expense - governmental activities 6,992,820 $ Business-type activities: Stormwater utility 204,740 $ Total depreciation expense - business-type activities 204,740 $ NOTE 5 – INTERFUND TRANSFERS The composition of interfund transfers as of September 30, 2023, is as follows: Transfers Out Transfers In Amount Purpose General Fund Debt Service Fund 2,056,226 $ To provide debt service funds General Fund Capital Projects Fund 2,815,140 To provide capital funds General Fund Transportation Fund 25,000 To provide operational funds General Fund Hardwire Fund 15,375 To provide operational funds General Fund Wireless Fund 85,500 To provide operational funds General Fund Prepaid Fund 17,740 To provide operational funds Total General Fund 5,014,981 $ NOTE 6 – LONG-TERM DEBT The Village has five debt issues outstanding at September 30, 2023, all of which are considered direct borrowings. Principal and interest on these bonds are payable from a covenant to budget and appropriate legally available non- ad valorem revenues. Series 2015 is for the expansion of the Community Center and improvements at Coral Pines Park. The note bears interest at 2.40%. In the event of a default, the note contains a provision to bear interest at the default rate until the default is cured. Additionally, the Council or Lender shall have all remedies provided by law to collect amounts then due. Series 2019 was issued in the amount of approximately $2,617,100 to provide funding for various capital projects including improvement of the Community Center, the Municipal Center/Library, Pinecrest Gardens, and other parks within the Village. The note bears interest at 2.53%. In the event of a default, the note contains a provision to bear interest at the default rate until the default is cured. Additionally, the Council or Lender shall have all remedies provided by law to collect amounts then due. Series 2021A was issued in the amount of approximately $7,880,000 to provide funding for various park improvement projects including Pinecrest Gardens. The note bears interest at 2.22%. In the event of a default, the note contains a provision to bear interest at the default rate until the default is cured. Additionally, the Council or Lender shall have all remedies provided by law to collect amounts then due. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 35 NOTE 6 – LONG-TERM DEBT (CONTINUED) On July 1, 2021 the Village issued Series 2021B in the amount of approximately $5,750,526 to purchase a parcel of land for parks and recreational purposes, improvements to Pinecrest Gardens, and the refunding of Series 2011. The note bears interest at 1.92%. In the event of a default, the loan agreement has a provision that the Council or Lender shall have all remedies provided by law to collect amounts then due. The Village utilized $948,125 of the proceeds from the Series 2021B note to advance refund approximately $862,465 outstanding from the 2011 Series note. The net proceeds were deposited with an escrow agent to provide for future debt service payments on the 2011 Series bonds. As a result, the 2011 Series Note is considered to be defeased and the corresponding liability has been removed from the Village’s long-term liabilities. The advance refunding transaction resulted in an economic gain of approximately $124,763 derived from the difference between the present value of the prior debt net cash flow and the present value of the refunding debt service of approximately $1,088,507 and $951,210 respectively. On July 1, 2021 the Village issued the Capital Improvement Revenue Note, Series 2022 in the amount of $4,300,000 for the purpose of financing construction costs and capital projects related to the Village’s Potable Water Project. The note bears interest ranging from 3.215% to 3.510%. In the event of a default, the loan agreement has a provision that the Council or Lender shall have all remedies provided by law to collect amounts then due. On May 1, 2023 the Village issued the Capital Improvement Revenue Note, Series 2023A in the amount of $5,852,377 for the construction, acquisition, renovation, and equipping of certain capital improvements, including, but not limited to: (i) the construction, acquisition, renovation, and equipping of various park, athletic, and recreational facilities at the Suniland Park, Flagler Grove Park, Veterans Park, Coral Pine Park, and Gary Matzner Park; and (ii) construction, acquisition, renovation, and equipping of Kendall Drive Shared Use Path. The note bears interest at 3.92%. In the event of default, the loan agreement has a provision that the Council or Lender shall have all remedies provided by law to collect amounts then due. Maturities of these direct borrowings are as follows: Year ending September 30, Principal Interest Total 2024 1,735,196 $ 362,521 $ 2,097,717 $ 2025 1,779,913 340,441 2,120,354 2026 1,825,564 317,759 2,143,323 2027 1,872,170 294,461 2,166,631 2028 1,919,849 270,532 2,190,381 2029-2033 6,433,198 1,048,472 7,481,670 2034-2038 5,824,505 628,028 6,452,533 2039-2043 4,052,953 235,061 4,288,014 2044-2047 959,906 42,842 1,002,748 26,403,254 $ 3,540,117 $ 29,943,371 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 36 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 22,116,846 $ 5,852,377 $ (1,565,968) $ 26,403,254 $ 1,735,196 $ Total OPEB liability 240,549 11,634 (32,280) 219,903 - Net pension liability 9,723,499 4,492,225 - 14,215,724 18,104 Compensated absences 1,607,477 221,154 (179,457) 1,649,173 1,401,798 Total governmental activities 33,688,371 $ 10,577,390 $ (1,777,705) $ 42,488,054 $ 3,155,098 $ Compensated absences are paid from the General Fund in the form of vacation pay. The total OPEB liability and the net pension liability are generally liquidated by the General Fund. NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable as of fiscal year end for the Village’s individual major and nonmajor funds, in the aggregate are as follows: General Fund Debt Service Fund Capital Projects Fund Nonmajor Governmental Funds Stormwater Fund Total Payables: Payroll 780,885 $ - $ - $ - $ - $ 780,885 $ Vendors 499,406 73,591 1,213,645 60,172 410,484 2,257,298 Security deposits 629,609 - - - - 629,609 Other 223,583 - - - - 223,583 Total payables 2,133,483 $ 73,591 $ 1,213,645 $ 60,172 $ 410,484 $ 3,891,375 $ 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 $926,878. Employee contributions were $419,784 for the fiscal year ended September 30, 2023. 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, 2023, the Village made no contributions and employees contributed $433,732. 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, 2023 37 NOTE 9 – RETIREMENT PLAN Florida Retirement System The Village participates in the Florida Retirement System (FRS), a statewide cost-sharing multiple- employer public employee retirement system (PERS), available to governmental units within the state and administered by the State of Florida Department of Management Services, Division of Retirement. The sworn police personnel are eligible to participate in the FRS. General information As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (“Pension Plan”) and the Retiree Health Insurance Subsidy (“HIS Plan”). The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature. The state of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315- 9000, by calling (877) 377-1737, or by visiting: www.dms.myflorida.com/workforce_operations/retirement/publications VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 38 NOTE 9 – RETIREMENT PLAN (CONTINUED) Plan description The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (“DROP”) for eligible employees. Benefits provided Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. For Special Risk and Special Risk Administrative Support class members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 60 or 30 years of service regardless of age. Also, the final average compensation for these members will be based on the eight highest years of salary. As provided in

101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of- living adjustment is a proportion of 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. Contributions Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute 3% of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2022 through June 30, 2023, and from July 1, 2023 through September 30, 2023, respectively, were as follows: Regular Class – 10.19% and 11.51%; Senior Management – 26.11% and 30.61%; and DROP participants – 16.94% and 19.13%. These employer contribution rates do not include the 1.66% HIS Plan subsidy for the periods October 1, 2022 through June 30, 2023, and from July 1, 2023 through September 30, 2023, respectively. The Village’s contributions, including employee contributions, to the Pension Plan totaled $1,433,604 for the fiscal year ended September 30, 2023. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions At September 30, 2023, the Village reported a liability of $11,874,621 for its proportionate share of the Pension Plan’s net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. The Village’s proportion of the net pension liability was based on a projection of the Village’s 2022-2023 fiscal year contributions relative to the 2022-2023 fiscal year contributions of all participating members. At June 30, 2023, the Village’s proportion was 0.0298%, which was a decrease from its proportion measured as of June 30, 2022, of 0.0228%. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 39 NOTE 9 – RETIREMENT PLAN (CONTINUED) Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions (Continued) For the fiscal year ended September 30, 2023, the Village recognized pension expense of $992,053. In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 1,114,924 $ - $ Change of assumptions 774,086 - Net difference between projected and actual earnings on FRS pension plan investments 495,916 - Changes in proportion and differences between Authority FRS contributions and proportionate share of contributions 1,607,999 947,107 Authority FRS contributions subsequent to measurement date 357,860 - Total 4,350,785 $ 947,107 $ The deferred outflows of resources related to the Pension Plan, totaling $357,860 resulting from Village contributions to FRS subsequent to the measurement date. Contributions made after the measurement date of the net pension liability but before the end of the employer’s or governmental nonemployer contributing entity’s reporting period will be recognized as a reduction of the net pension liability or collecting net pension liability in the subsequent fiscal period rather than in the current fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows: Fiscal Year End Deferred Outflows/(Inflows), net 2024 307,915 $ 2025 (67,641) 2026 2,119,825 2027 520,492 2028 165,227 Total 3,045,818 $ Actuarial assumptions The total pension liability in the June 30, 2023, 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: 6.70%, net of pension plan investment expense, including inflation Mortality rates were based on PUB-2010 base tables and varies by member category and sex, projected generationally with Scale MP-2018. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 40 NOTE 9 – RETIREMENT PLAN (CONTINUED) Actuarial assumptions (Continued) The actuarial assumptions used in the July 1, 2023, 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% 2.9% 2.9% 1.1% Fixed income 19.8% 4.5% 4.4% 3.4% Global equity 54.0% 8.7% 7.1% 18.1% Real estate 10.3% 7.6% 6.6% 14.8% Private equity 11.1% 11.9% 8.8% 26.3% Strategic investments 3.8% 6.3% 6.1% 7.7% 100% Assumed inflation-Mean 2.4% 1.4% Note: (1) As outlined in the Plan's investment policy Discount rate The discount rate used to measure the total pension liability was 6.70%. The Pension Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculation the total pension liability is equal to the long-term expected rate of return. Sensitivity of the Village’s proportionate share of the net position liability to changes in the discount rate The following represents the Village’s proportionate share of the net pension liability calculated using the discount rate of 6.70%, as well as what the Village’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate. 1% Current 1% Decrease Discount Rate Increase 5.70% 6.70% 7.70% Authority's proportionate share of the net pension liability 20,284,270 $ 11,874,621 $ 4,838,943 $ Detailed information regarding the Pension Plan’s fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive Financial Report. Payables to the pension plan At September 30, 2023, 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, 2023. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 41 NOTE 9 – RETIREMENT PLAN (CONTINUED) HIS Plan Plan description The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under

363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a monthly payment to assist retirees of state-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits provided For the fiscal year ended September 30, 2023, 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, 2022, the HIS contribution for the period October 1, 2022 through September 30, 2023, 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 $98,442 for the current year. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions At September 30, 2023, the Village reported a liability of $2,341,103 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2022. The Village’s proportionate share of the net pension liability was based on the Village’s 2021-2023 fiscal year contributions relative to the 2022-2023 fiscal year contributions of all participating members. At June 30, 2023, the Village's proportionate share was 0.0147%, which was a decrease from its proportionate share measured as of June 30, 2022, of 0.0116%. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 42 NOTE 9 – RETIREMENT PLAN (CONTINUED) Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions (Continued) For the fiscal year ended September 30, 2023, the Village recognized pension expense of $827,306. In addition the Village reported deferred outflows of resources and deferred in flows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 34,272 $ 5,495 $ Change of assumptions 61,547 202,864 Net difference between projected and actual earnings on FRS pension plan investments 1,209 - Changes in proportion and differences between Authority FRS contributions and proportionate share of contributions 332,500 87,628 Authority FRS contributions subsequent to measurement date 24,574 - 454,102 $ 295,987 $ The deferred outflows of resources related to the HIS Plan, totaling $24,574 resulting from Village contributions to the HIS Plan subsequent to the measurement date. Contributions made after the measurement date of the net pension liability but before the end of the employer’s or governmental nonemployer contributing entity’s reporting period will be recognized as a reduction of the net pension liability or collecting net pension liability in the subsequent fiscal period rather than in the current fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as follows: Fiscal Year End Deferred Outflows/(Inflows), net 2023 22,088 $ 2024 23,491 2025 28,012 2026 12,132 2027 32,609 Thereafter 15,209 Total 133,541 $ The total pension liability in the July 1, 2023, 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 MP-2018 tables. The actuarial assumptions used in the July 1, 2023, valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 43 NOTE 9 – RETIREMENT PLAN (CONTINUED) Discount rate The discount rate used to measure the total pension liability was 3.65%. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay- as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Sensitivity of the Village’s proportionate share of the net position liability to changes in the discount rate The following represents the Village’s proportionate share of the net pension liability calculated using the discount rate of 3.65%, as well as what the Village’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: 1% Current 1% Decrease Discount Rate Increase 2.65% 3.65% 4.65% Authority's proportionate share of the net pension liability 2,670,831 $ 2,341,101 $ 2,067,777 $ 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, 2023, 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, 2023. Applicable totals for all of the Village’s defined benefit pension plans are reflected below: FRS HIS Total Village's proportionate share of net pension liability 11,874,621 $ 2,341,103 $ 14,215,724 $ Deferred outflows of resources 4,350,785 454,102 4,804,887 Deferred inflows of resources 947,107 295,987 1,243,094 Pension expense/expenditure 2,444,842 925,751 3,370,593 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS Description The Village administers a single-employer defined benefit OPEB plan. The purpose of this plan is to account for the implicit rate subsidy the Village provides to its retirees Florida Statutes require that municipalities provide their retirees access to the same health insurance programs as their current employees at the same rates. Since the inclusion of the retirees results in higher overall health insurance costs to the municipality which cannot be passed on to the retirees, it in effect results in what is called the implicit rate subsidy. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. This is the only post-employment benefit the Village provides to its retirees other than its pension plan. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 44 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Description (Continued) Membership in the plan consisted of the following at September 30, 2023: Retirees and beneficiaries currently receiving benefits 1 Active employees 128 Total 129 Separate financial statements for the Village’s OPEB plan are not available. Funds from the General Fund are used to liquidate the total OPEB liability. This actuarial valuation involves estimates of the value of reported amounts and assumptions about the probability of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to constant revision as actual experience is compared with past expectations and new estimates are made about the future. Calculations are based upon the types of benefits provided under the terms of the substantive plan at the time of the valuation and on the pattern of sharing of costs between the employer and plan members to that point. Calculations reflect a long-term prospective, so methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Benefits Provided Retirees and their dependents can continue participating in the group insurance plans offered by the Village, but they are required to contribute 100% of the active premiums. Total OPEB liability of the Village The Village’s total OPEB liability was measured as of September 30, 2022 and was determined by an actuarial valuation as of October 1, 2021, 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, 2021, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 45 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Discount rate: 4.77% per annum, this rate was used to discount all future benefit payments and is based on the return on the S&P Municipal Bond 20-year High Grade Index as of the measurement date. Salary increases: 3.00% per annum Cost-of-living increases: Retiree contributions, health insurance premiums, and the implied subsidy have been assumed to increase in accordance with the healthcare cost trend rates. Healthcare cost trend rates: Increases in healthcare costs are assumed to be 7.50% for the 2021/22 fiscal year graded down by 0.50% per year to 5.00% for the 2026/27 and later fiscal years. Age-related morbidity: Healthcare costs are assumed to increase at the rate of 3.50% for each year of age. Implied subsidy: Because the insurance carrier charges the same monthly rate for health insurance regardless of age, an implied monthly subsidy of $600.00 has been assumed at age 65 for the 2021/22 fiscal year; at other ages, the implied subsidy was developed based on the age-related morbidity assumption and, for other fiscal years, the implied subsidy was increased in accordance with the healthcare cost trend rates. Mortality basis: Sex-distinct rates set forth in the PUB-2010 Mortality Table (without income adjustments) for general and public safety employees, with full generational improvements in mortality using Scale MP-2020 Retirement: Retirement is assumed to occur at age 55 for police officers and at age 60 for general employees. Other decrements: Assumed employment termination is based on the Scale 155 table; assumed disability is based on the Wyatt 1985 Disability Study (Class 1 rates are used for general employees and Class 4 rates are used for police officers). Coverage election: 10% of eligible employees are assumed to elect single coverage at retirement under the high-deductible plan; health coverage is assumed to end upon the attainment of age 65. COBRA: Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation, because the COBRA premium is determined periodically based on plan experience, the COBRA premium to be paid by the participant is assumed to fully cover the cost of providing healthcare coverage during the relevant period. Changes: Since the prior measurement date, the discount rate was increased from 2.43% per annum to 4.77% per annum and the implied monthly subsidy at age 65 for the 2021/22 fiscal year was increased from $540.00 to $600.00. VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 46 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Discount rate Given the Village’s decision not to fund the program, all future benefit payments were discounted using a municipal bond rate of 4.77%. Changes in the total OPEB liability for the Village for the year ended September 30, 2023, were as follows: Total OPEB Liability Balance at September 30, 2022 240,549 $ Changes for the year: Service cost 18,392 Expected interest growth 12,138 Demographic experience (37,499) Benefit payments and refunds (9,074) Assumption changes (4,603) Net changes (20,646) Balance at September 30, 2023 219,903 $ There were no significant changes in assumptions since the prior measurement date. The required schedule of changes in the Village’s total OPEB liability and related ratios immediately following the notes to the financial statements presents multi-year trend information about the total OPEB liability. Sensitivity of the total OPEB liability to changes in the discount rate The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.77%) or 1-percentage-point higher (5.77%) than the current discount rate: 1% Decrease Rate Assumption 1% Increase (3.77%) (4.77%) (5.77%) Total OPEB liability 242,400 $ 219,903 $ 200,113 $ Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- percentage-point higher than the current healthcare cost trend rates: 1% Trend Decrease Healthcare Cost Trend Rate Assumption (7.50% graded down to 5.00%) 1% Trend Increase Total OPEB liability 193,196 $ 219,903 $ 252,198 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 47 NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates (Continued) Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future, and actuarially determined amounts are subject to continual revisions as results are compared to past expectations and new estimates are made about the future. Actuarial calculations reflect a long- term perspective. Calculations are based on the substantive plan in effect as of September 30, 2023, 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, 2023, the Village recognized OPEB expense of $11,634. At September 30, 2023, 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 30,553 $ 83,029 $ Change of assumptions 42,068 74,577 Village contributions subsequent to the measurement date 9,401 - Totals 82,022 $ 157,606 $ The deferred outflows of resources related to the OPEB Plan, totaling $9,401 resulting from Village contributions to the plan subsequent to the measurement date. Contributions made after the measurement date of the OPEB liability but before the end of the employer’s or governmental nonemployer contributing entity’s reporting period will be recognized as a reduction of the OPEB or collecting OPEB in the subsequent fiscal period rather than in the current fiscal period. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the OPEB Plan will be recognized in OPEB expense as follows: Fiscal Year Ending September 30: Amount 2024 $ 9,153 2025 9,153 2026 9,153 2027 9,153 2028 9,153 Thereafter 29,819 VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 48 NOTE 11 – COMMITMENTS AND CONTINGENCIES Risk management The Village is exposed to various risks of loss related to torts, theft of or damage to and destruction of assets, errors and omissions, injuries to employees, and natural disasters for which the Village carries insurance through the Florida League of Cities. There were no significant reductions in insurance coverage from the coverage in the prior year. There were no settled claims that have exceeded insurance coverage for each of the past three years. Litigation The Village is a defendant in various lawsuits incidental to its operations. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the Village’s management and legal counsel that resolution of these matters will not have a material adverse effect on the financial condition of the Village. Contingent liabilities Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. In the opinion of management, future disallowances of grant expenditures, if any, would not have a material adverse effect on the Village’s financial condition. Interlocal agreements On June 17, 1997, the Village entered into an interlocal agreement with Miami-Dade County to pass through the Village’s share of the franchise fee on electricity collected by Florida Power and Light. Under this agreement, the County remitted $1,873,971 to the Village for the fiscal year ending September 30, 2023. This agreement will be in effect as long as the ordinance establishing the collection of these fees is in place. On July 17, 2003, the Village entered into another interlocal agreement with Miami-Dade County. Under this agreement, the County remitted $1,128,952 to the Village for the fiscal year ending September 30, 2023, for the purpose of providing transportation services within the Village. This agreement shall remain in effect as long as the County receives net proceeds from the ½ cent County Transit System Surtax as authorized by Miami-Dade County Ordinance No. 02-116 pursuant to the authority of

055(1), Florida Statutes 2002. Construction commitments and budget carryovers There are several ongoing projects and equipment purchases in the various funds of the Village at fiscal year- end. The outstanding commitments and budget carryovers are as follows: General Fund: Compost Container Program 3,182 $ Legal Advertising Security Guard Assessment 13,831 CAD Upgrade 5,655 Work Shirts 1,898 Ammunition 2,785 Patrol Vehicle 66,335 Vehicle Wrap 5,950 Dash Camera Installation 468 Vehicle Radar & Antennas 730 Training Simulator 49,500 Vehicle Hardware Installation 7,140 ALPR Phase 3 42,750 Laser Training Equipment 850 Computer Supplies for Cars 46,992 AED 3,300 52 Licenses 8,385 Imaging 4,412 GIS Mapping Services 5,859 Uniforms 2,500 Office Furniture 3,262 Training 6,453 Myth Makers Exhibit 65,000 Singing Tree Light Exhibit 8,831 Total General Fund Carryovers 356,068 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 49 NOTE 11 – COMMITMENTS AND CONTINGENCIES (CONTINUED) Stormwater Fund: Drainage: Palmetto Island Design 119,941 $ Drainage Improvement Inspection 6,904 Drainage Improv - C100A-W3N-Phase 1 151,783 FDEP Vulnerability Study 169,234 Drainage Improvement Phase 2 144,359 Drainage Improvement Phase 1 8,746 Drainage Sub Basins U29-W - 2,750 85,819 Drainage Sub Basins U29-E 221,164 STW Improvements Sub BasinU35-S 141,765 QA/QC Services for Misc Drainage Plans 15,747 Drainage Improv - SW 70th Ave 4,082 Resurfacing works at SW 135 Terr & 58 Ct 45,540 SW 82 Ave Complete Street Planning 65,150 Drainage Improv - C100A-W3N-Phase e 340,958 Residential Drainage Improv - 3 locations 116,255 Total Stormwater Fund Carryovers 1,637,446 $ Transporation Fund: 117 St/US1 11,418 $ Landscape Howard 15,000 Native Planting Improvments Right of Way 9,200 Traffic Study Intersection Analysis SW 88 St & 67 Ave 1,129 Flashing Red 72 Ave/128 St 35,000 Palmetto Middle 128St 35,950 PG 57 AV & N 112St 34,925 106 ST & 77 Ave 35,000 Shoulder 11850/67 Ave 5,445 SW 115th Ter & SW 72nd Ave 17,290 PG Bus Stop Structure Repair 53,025 SW 120 St and SW 60 Ave 7,974 SW 128 St at SW 60 Ave 8,029 Wayside Market Evaluation 10070 SW 57th Ave 9,897 Forklift for PW 13,020 Total Transportation Fund Carryovers 292,302 $ Impact Fee Fund: FG Storage Facility 20,455 $ Total Impact Fee Fund Carryovers 20,455 $ VILLAGE OF PINECREST, FLORIDA NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2023 50 NOTE 12 – SUBSEQUENT EVENTS January 2024, the Village issued the Florida Municipal Loan Council Revenue Bonds, Series 2024 in the amount of $15,000,000 for the purchase of a park and the construction, installation, renovation, or equipping costs incurred during the construction period. The bonds bear interest at 5% payable on an annual basis commencing April 1, 2024. The Series 2024 bonds mature on October 1, 2043. REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Taxes: Ad valorem taxes 13,743,930 $ 13,743,930 $ 13,922,287 $ 178,357 $ Franchise taxes 1,905,000 1,905,000 2,033,842 128,842 Utility taxes 2,600,000 2,600,000 3,084,042 484,042 Communication service tax 926,535 926,535 962,960 36,425 Business tax 135,000 135,000 143,155 8,155 Licenses and permits 3,076,500 3,076,500 3,800,681 724,181 Intergovernmental 2,707,720 2,707,720 3,095,056 387,336 Charges for services 4,651,175 4,651,175 5,392,924 741,749 Fines and forfeitures 1,425,000 1,425,000 1,372,828 (52,172) Investment earnings 25,000 25,000 716,521 691,521 Miscellaneous 137,000 137,000 200,271 63,271 Total revenues 31,332,860 31,332,860 34,724,567 3,391,707 EXPENDITURES Current: General government: Village council 137,845 $ 137,845 $ 137,730 $ 115 $ Village manager 986,925 1,031,920 1,024,427 7,493 Village clerk 411,950 411,950 397,570 14,380 Finance department 452,540 457,540 455,851 1,689 Village attorney 660,000 660,000 621,570 38,430 General government 1,754,465 1,995,385 1,985,507 9,878 Information technology 598,690 621,190 618,267 2,923 Total general government 5,002,415 5,315,830 5,240,922 74,908 Public safety - police 11,712,285 13,052,997 12,774,816 278,181 Building, planning and zoning 3,500,975 3,590,975 3,396,695 194,280 Public works 1,030,985 1,040,985 990,875 50,110 Parks and recreation 6,856,205 7,218,900 7,104,549 114,351 Total expenditures 28,102,865 30,219,687 29,507,857 711,830 Excess (deficiency) of revenues over expenditures before other financing sources (uses) 3,229,995 1,113,173 5,216,710 2,679,877 OTHER FINANCING SOURCES (USES) Transfers out 3,003,090 (5,191,955) (4,614,981) (576,974) Appropriation of fund balance (6,226,885) 4,084,982 - 4,084,982 Total other financing sources (uses) (3,223,795) (1,106,973) (5,014,981) 3,908,008 Net change in fund balances 6,200 6,200 201,729 6,587,885 Fund balances - beginning 11,227,880 Fund balances - ending 11,429,609 $ Budgeted Amounts VILLAGE OF PINECREST, FLORIDA Variance with Final Budget - Positive (Negative) Actual Amounts 51 VILLAGE OF PINECREST, FLORIDA NOTE TO BUDGETARY COMPARISON SCHEDULES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 52 NOTE 1 – BUDGETS AND BUDGETARY ACCOUNTING An annual appropriated budget is adopted for all of the governmental funds on a basis consistent with accounting principles generally accepted in the United States. The Village follows these procedures in establishing the budgetary data reflected in the financial statements: a. The Village Manager submits to the Council a proposed operating and capital budget for the ensuing year. The budget includes proposed expenditures and means of financing them. b. Public hearings are conducted to obtain taxpayer comments. c. Prior to October 1, the budget is legally enacted through the passage of a budget ordinance. d. The Village Council, by motion, may make supplemental appropriations for the year up to the amount of revenues in excess of those estimated. There were supplemental appropriations in the General Fund for an additional $2,116,822 during the fiscal year ended September 30, 2023. 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. 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Village's proportion of the net pension liability (asset) 0.029800662% 0.022822% 0.024375% 0.027684% 0.027808% 0.031705% 0.032074% 0.031173% 0.027937% 0.028332% Village's proportionate share of the net pension liability (asset) 11,874,621 $ 8,491,757 $ 1,841,231 $ 11,998,695 $ 9,576,699 $ 9,549,770 $ 9,487,370 $ 7,871,188 $ 3,608,378 $ 1,728,668 $ Village's covered payroll 4,400,711 $ 4,306,648 $ 4,310,385 $ 12,131,118 $ 11,017,488 $ 10,414,656 $ 10,026,993 $ 9,129,495 $ 7,828,489 $ 6,564,017 $ Village's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 269.83% 197.18% 42.72% 276.64% 217.12% 193.99% 190.46% 176.53% 80.99% 39.05% FRS plan fiduciary net position as a percentage of the total pension liability 82.38% 82.89% 96.40% 78.85% 82.61% 84.26% 83.69% 84.88% 92.00% 96.09% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM PENSION PLAN (FRS) SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 53 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required contribution 1,433,604 $ 973,872 $ 928,571 $ 919,820 $ 862,250 $ 903,573 $ 834,974 $ 834,553 $ 703,668 $ 656,121 $ Contributions in relation to the contractually required contribution (1,433,604) (973,872) (928,571) (2,653,326) (2,389,761) (2,204,195) (2,082,376) (1,817,153) (1,454,377) (1,173,805) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Village's covered payroll 5,629,100 $ 4,306,648 $ 4,310,385 $ 3,963,213 $ 4,011,802 $ 3,977,497 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ Contributions as a percentage of covered payroll 25.47% 22.61% 21.54% 23.21% 21.49% 22.72% 20.21% 18.88% 18.88% 17.98% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION FLORIDA RETIREMENT SYSTEM PENSION PLAN SCHEDULE OF THE VILLAGE'S CONTRIBUTIONS 54 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Village's proportion of the net pension liability (asset) 0.0147412% 0.0116294% 0.0120480% 0.01158900% 0.01195700% 0.01313600% 0.01269700% 0.01221600% 0.01216400% 0.01212500% Village's proportionate share of the net pension liability (asset) 2,341,101 $ 1,231,742 $ 1,477,873 $ 1,414,972 $ 1,337,908 $ 1,390,295 $ 1,357,598 $ 1,423,708 $ 1,240,524 $ 1,133,680 $ Village's covered payroll 4,066,761 $ 3,959,471 $ 4,049,302 $ 3,963,213 $ 4,011,802 $ 3,977,497 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ Village's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 57.57% 31.11% 36.50% 35.91% 33.46% 32.41% 32.28% 37.76% 33.74% 31.26% Plan fiduciary net position as a percentage of the total pension liability 4.12% 4.81% 3.56% 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY SYSTEM PENSION PLAN (HIS) SCHEDULE OF THE VILLAGE'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 55 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required contribution 96,970 $ 70,368 $ 70,818 $ 66,781 $ 66,398 $ 71,235 $ 67,195 $ 48,773 $ 43,532 $ 37,882 $ Contributions in relation to the contractually required contribution (96,970) (70,368) (375,790) (201,377) (193,764) (172,883) (172,063) (143,366) (125,885) (80,649) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Village's covered payroll 5,198,620 $ 3,959,471 $ 4,049,302 $ 3,920,088 $ 3,888,592 $ 3,863,023 $ 4,132,168 $ 4,419,337 $ 3,727,429 $ 3,648,836 $ Contributions as a percentage of covered payroll 1.87% 1.78% 1.75% 1.70% 1.71% 1.84% 1.63% 1.10% 1.17% 1.04% * The amounts presented for each fiscal year were determined as of 6/30 (measurement date of the collective net pension liability). VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION HEALTH INSURANCE SUBSIDY PENSION PLAN (HIS) SCHEDULE OF THE VILLAGE'S CONTRIBUTIONS 56 Total OPEB Liability: 2023 2022 2021 2020 2019 2018 Service cost 18,392 $ 24,195 $ 25,501 $ 25,752 $ 17,496 $ 24,009 $ Interest 12,138 7,205 6,926 8,898 8,400 6,051 Changes of benefit terms - - - - 55,678 - Differences between expected and actual experience of the Total OPEB Liability (37,499) (52,115) (24,308) (8,545) - - Changes in assumptions (4,603) (6,758) (21,825) 64,444 (59,606) - Benefit payments (9,074) (8,535) (15,695) (14,644) (10,268) (7,548) Net Change in total OPEB liability (20,646) (36,008) (29,401) 75,905 11,700 22,512 Total OPEB liability- beginning 240,549 276,557 305,958 230,053 218,353 195,841 Total OPEB liability- ending 219,903 $ 240,549 $ 276,557 $ 305,958 $ 230,053 $ 218,353 $ Covered-employee payroll 9,276,195 $ 8,836,086 $ 8,605,208 $ 9,205,450 $ 7,885,136 $ 6,991,252 $ Total OPEB liability as a percentage of covered-employee payroll 2.37% 2.72% 3.21% 3.32% 2.92% 3.12% Note: This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, pension plans should present information for those years for which information is available. There are no plan assets accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. VILLAGE OF PINECREST, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS - SEPTEMBER 30, 2023 OTHER POST EMPLOYMENT BENEFITS (OPEB) 57 SUPPLEMENTARY INFORMATION VILLAGE OF PINECREST, FLORIDA COMBINING BALANCE SHEET - NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 Transportation Police Education Police Forfeiture Hardwire Wireless CITT Public Prepaid 911 Impact Fees Fund Fund Fund Fund Fund Trust Fund Fund Fund Subtotal ASSETS Cash and cash equivalents 239,722 $ 19,985 $ - $ 12,495 $ 22,819 $ 1,048,118 $ 7,852 $ 528,789 $ 1,879,780 $ Accounts receivable, net 68,844 138 - 1,566 2,535 300,318 1,765 - 375,166 Total assets 308,566 $ 20,123 $ - $ 14,061 $ 25,354 $ 1,348,436 $ 9,617 $ 528,789 $ 2,254,946 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 16,263 $ - $ - $ - $ - $ 29,629 $ - $ 14,280 $ 60,172 Total liabilities 16,263 - - - - 29,629 - 14,280 60,172 Fund balances: Restricted for: Transportation 292,303 - - - - 1,318,807 - - 1,611,110 Public safety - 20,123 - 14,061 25,354 - 9,617 6,100 75,255 General government - - - - - - - 102,264 102,264 Stormwater - - - - - - - 383,316 383,316 Parks - - - - - - - 22,829 22,829 Total fund balances 292,303 20,123 - 14,061 25,354 1,318,807 9,617 514,509 2,194,774 Total liabilities and fund balances 308,566 $ 20,123 $ - $ 14,061 $ 25,354 $ 1,348,436 $ 9,617 $ 528,789 $ 2,254,946 $ Special Revenue Funds 58 VILLAGE OF PINECREST, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Special Revenue Funds Transportation Police Education Police Forfeiture Hardwire Wireless CITT Public Prepaid 911 Impact Fees Fund Fund Fund Fund Fund Transit Fund Fund Fund Subtotal REVENUES Taxes 510,638 $ - $ - $ - $ - $ - $ - $ - $ 510,638 $ Licenses and permits - - - - - - - 175,537 175,537 Intergovernmental 13,488 - - 6,348 14,136 1,273,283 6,875 - 1,314,130 Fines and forfeitures - 2,452 - - - - - - 2,452 Investment earnings 11,938 921 13 761 2,036 41,825 504 22,285 80,283 Miscellaneous - - - - - 8,000 - - 8,000 Total revenues 536,064 3,373 13 7,109 16,172 1,323,108 7,379 197,822 2,091,040 EXPENDITURES Current: Public safety - 11,349 13 32,256 122,752 - 27,410 - 193,780 Public works 182,967 - - - - 619,616 - - 802,583 Capital outlay 284,799 - - - - 415,023 - 290,341 990,163 Total expenditures 467,766 11,349 13 32,256 122,752 1,034,639 27,410 290,341 1,986,526 Excess (deficiency) of revenues over expenditures 68,298 (7,976) - (25,147) (106,580) 288,469 (20,031) (92,519) 104,514 OTHER FINANCING SOURCES Transfers in 25,000 - - 15,375 85,500 - 17,740 - 143,615 Total other financing sources 25,000 - - 15,375 85,500 - 17,740 - 143,615 Net change in fund balances 93,298 (7,976) - (9,772) (21,080) 288,469 (2,291) (92,519) 248,129 Fund balances - beginning 199,005 28,099 - 23,833 46,434 1,030,338 11,908 607,028 1,946,645 Fund balances - ending 292,303 $ 20,123 $ - $ 14,061 $ 25,354 $ 1,318,807 $ 9,617 $ 514,509 $ 2,194,774 $ 59 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Transportation taxes 469,320 $ 469,320 $ 510,638 $ 41,318 $ Intergovernmental revenues - - 13,488 13,488 Investment earnings 300 300 11,938 11,638 Total revenues 469,620 469,620 536,064 66,444 EXPENDITURES Current: Public works 351,530 351,530 182,967 168,563 Capital outlay 292,200 512,200 284,799 227,401 Total expenditures 643,730 863,730 467,766 395,964 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (174,110) (394,110) 68,298 462,408 OTHER FINANCING SOURCES (USES) Transfers in - - 25,000 (25,000) Total other financing sources and uses - - 25,000 (25,000) Net change in fund balance 93,298 Fund balances - beginning 199,005 Fund balances - ending 292,303 $ Budgeted Amounts Variance with Final Budget - Positive (Negative) Actual Amounts SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRANSPORTATION FUND 60 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Fines and forfeitures 9,000 $ 9,000 $ 2,452 $ (6,548) $ Interest income - - 921 921 Total revenues 9,000 9,000 3,373 (5,627) EXPENDITURES Current: Public safety 14,175 14,175 11,349 2,826 Total expenditures 14,175 14,175 11,349 2,826 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (5,175) (5,175) (7,976) (2,801) Net change in fund balance (7,976) Fund balances - beginning 28,099 Fund balances - ending 20,123 $ Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL POLICE EDUCATION FUND 61 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Intergovernmental - $ - $ 13 $ 13 $ Total revenues - - 13 13 EXPENDITURES Current: Public safety - - 13 (13) Total expenditures - - 13 (13) Excess (deficiency) of revenues over expenditures before other financing sources (uses) - - - - Net change in fund balance - Fund balances - beginning - Fund balances - ending - $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL POLICE FORFEITURE FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 62 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Intergovernmental - - 6,348 6,348 Investment earnings - - 761 761 Total revenues - - 7,109 13,457 EXPENDITURES Current: Public safety 30,380 32,255 32,256 (1) Total expenditures 30,380 32,255 32,256 (1) Excess (deficiency) of revenues over expenditures before other financing sources (uses) (30,380) (32,255) (25,147) 13,456 OTHER FINANCING SOURCES (USES) Transfers in 13,500 13,500 15,375 (1,875) Total other financing sources and uses 13,500 13,500 15,375 (1,875) Net change in fund balance (9,772) Fund balances - beginning 23,833 Fund balances - ending 14,061 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HARDWIRE FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 63 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Intergovernmental - - 14,136 14,136 Investment earnings - - 2,036 2,036 Total revenues - - 16,172 30,308 EXPENDITURES Current: Public safety 117,255 122,755 122,752 3 Total expenditures 117,255 122,755 122,752 3 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (117,255) (122,755) (106,580) 30,311 OTHER FINANCING SOURCES (USES) Transfers in 80,000 80,000 85,500 (5,500) Total other financing sources and uses 80,000 80,000 85,500 (5,500) Net change in fund balance (21,080) Fund balances - beginning 46,434 Fund balances - ending 25,354 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL WIRELESS FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 64 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Intergovernmental 1,277,780 1,277,780 1,273,283 (4,497) Interest income 300 300 41,825 41,525 Miscellaneous - - 8,000 8,000 Total revenues 1,278,080 1,278,080 1,323,108 40,531 EXPENDITURES Current: Public works 789,870 789,870 619,616 170,254 Capital outlay 620,000 620,000 415,023 204,977 Total expenditures 1,409,870 1,409,870 1,034,639 375,231 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (131,790) (131,790) 288,469 415,762 Net change in fund balance 288,469 Fund balances - beginning 1,030,338 Fund balances - ending 1,318,807 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CITT PUBLIC TRANSIT FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 65 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Intergovernmental - $ - $ 6,875 $ 6,875 $ Interest income 10 10 504 494 Total revenues 10 10 7,379 7,369 EXPENDITURES Current: Public safety 26,175 27,415 27,410 5 Total expenditures 26,175 27,415 27,410 5 Excess (deficiency) of revenues over expenditures before other financing sources (uses) (26,165) (27,405) (20,031) 7,374 OTHER FINANCING SOURCES (USES) Transfers in 16,500 16,500 17,740 (1,240) Total other financing sources and uses 16,500 16,500 17,740 (1,240) Net change in fund balance (2,291) Fund balances - beginning 11,908 Fund balances - ending 9,617 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PREPAID 911 FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 66 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Licenses and permits 220,000 $ 220,000 $ 175,537 $ (44,463) $ Investment earnings 200 200 22,285 22,085 Total revenues 220,200 220,200 197,822 (22,378) EXPENDITURES Capital outlay 220,000 440,705 290,341 150,364 Total expenditures 220,000 440,705 290,341 150,364 Excess (deficiency) of revenues over expenditures before other financing sources (uses) 200 (220,505) (92,519) 127,986 Net change in fund balance (92,519) Fund balances - beginning 607,028 Fund balances - ending 514,509 $ SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL IMPACT FEES FUND Variance with Final Budget - Positive (Negative) Budgeted Amounts Actual Amounts 67 VILLAGE OF PINECREST, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Original Final REVENUES Special assessments revenue - $ - $ 211,663 $ 211,663 $ Investment earnings - - 20,963 20,963 Total revenues - - 232,626 232,626 EXPENDITURES Debt Service: Principal 1,910,045 1,910,045 1,565,968 344,077 Interest and other charges 552,555 552,555 695,741 (143,186) Total expenditures 2,462,600 2,462,600 2,261,709 200,89