Financial Reports Year End Audit as of 9/30/2017NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSIONERS
M. James Burke . Christopher L. Crossan . Norman E. Feder . J. Christopher Lombardo ■ John 0. McGowan
May 16, 2018
Mr. Derek Johnson, General Accounting Manager
Clerk of the Circuit Court, Finance Department
3299 Tamiami Trail East, #403
Naples, FL 34112
Sent via Federal Express
Dear Mr. Johnson:
Enclosed please a copy of the District's audit for the fiscal year ended 9-30-17.
Please contact me if you have any questions or would like to receive an electronic copy of the
audit.
Very truly yours,
BECKY /BRONSDON
Chief Financial Officer
1885 Veterans Park Drive Naples, FL 34109 ■ (239) 597-3222 ■ Fax (239) 597-7082 ■ www.northcollierfire.com
NORTH COLLIER FIRE CONTROL
AND RESCUE DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
YEAR ENDED
SEPTEMBER 30, 2017
TABLE OF CONTENTS
Page(s)
INDEPENDENT AUDITOR'S REPORT............................................................... 1-4
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)................................... i -xi
BASIC FINANCIAL STATEMENTS
GOVERNMENT -WIDE FINANCIAL STATEMENTS:
Statement of Net Position................................................................................. 5
Statement of Activities.................................................................................... 6
FUND FINANCIAL STATEMENTS:
Governmental Funds:
BalanceSheet............................................................................................. 7
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position...................................................................... 8
Statement of Revenues, Expenditures and Changes
inFund Balance......................................................................................... 9
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balance of Governmental Funds to the Statement of Activities ........................ 10
Fiduciary Fund - Firefighters' Pension Plan:
Statement of Fiduciary Net Position................................................................... 1 1
Statement of Changes in Fiduciary Net Position ..................................................... 12
NOTES TO THE FINANCIAL STATEMENTS......................................................... 13-75
OTHER INFORMATION
COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA
Governmental Funds
Combining Balance Sheet - General Fund - by Service Delivery Area ........................... 76
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance -
General Fund - by Service Delivery Area............................................................ 77
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
NORTH NAPLES SERVICE DELIVERY AREA
BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Summary Statement................................................................... 78
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Detailed Statement..................................................................... 79-81
BIG CORKSCREW ISLAND SERVICE DELIVERY AREA
BUDGET TO ACTUAL COMPARISON - MAJOR FUNDS (General and Special Revenue Funds)
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Summary Statement................................................................... 82
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund - Detailed Statement..................................................................... 83-85
TABLE OF CONTENTS (CONTINUED)
Page(s)
COMBINED SERVICE DELIVERY AREAS
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Impact Fee Fund - Combined Service Delivery Areas Summary Statement ...................... 86
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Impact Fee Fund - Combined Service Delivery Areas Detailed Statement 87
BUDGET TO ACTUAL COMPARISON - OTHER NON -MAJOR GOVERNMENTAL FUND
Special Revenue Fund:
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Inspection Fee Fund - Summary Statement........................................................ 88
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Inspection Fee Fund - Detailed Statement.......................................................... 89-90
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ...................................... 91
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ................ 92
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District's Proportionate Share of the Net Pension Liability - Florida Retirement
System Pension Plan (FRS)........................................................................... 93
Schedule of District Contributions - Florida Retirement System Pension Plan (FRS)............ 93
Schedule of District's Proportionate Share of the Net Pension Liability - Health Insurance
Subsidy Pension Plan (HIS)........................................................................... 94
Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS) ............. 94
Notes to the Required Supplementary Information.................................................... 95-96
ADDITIONAL REPORTS
Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Basic Financial Statements
Performed in Accordance with Government Auditing Standards ..................................... 97-98
Independent Auditor's Report on Compliance for Each Major Program and on Internal
Control Over Compliance Required by the Uniform Guidance ................................... 99-101
Schedule of Findings and Questioned Costs - Federal Awards ......................................... 102-103
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes........................................................................ 104
Independent Auditor's Report to Management............................................................ 105-107
Management's Response to Independent Auditor's Report to Management ........................... Exhibit
TUSCANAffiliations
Florida Institute of Certified Public Accountants
& Company, PA
American Institute of Certified Public Accountants
Private Companies Practice Section
Certified Public Accountants Si: Consultants
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major, the non -major
fund and the fiduciary fund type of North Collier Fire Control and Rescue District (the "District") as of and for the
year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the
District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the
financial statements of North Collier Fire Control and Rescue District Firefighters' Pension Trust Fund ("Pension
Fund") as of and for the year ended September 30, 2017, which represent 100% of the assets, liabilities and net
position as well as 100% of the revenue and expenses of the District's Fiduciary Fund. Those financial
statements were audited by other auditors whose report thereon has been furnished to us, and our opinion,
insofar as it relates to the amounts included for North Collier Fire Control and Rescue District Firefighters'
Pension Trust Fund, is based on the report of the other auditors. We also did not audit the financial statements
of the Florida Retirement System Pension Plan (FRS) or Health Insurance Subsidy Pension Plan (HIS) as of and
for the year ended June 30, 2017. The District is required to record its proportionate share of the FRS and HIS
liability in the District's government -wide financial statements as of September 30, 2017 and for the year then
ended. The Florida Retirement System financial statements were audited by other auditors whose reports have
been furnished to us, and our opinion, insofar as it relates to the amounts included for the District's
government -wide financial statements, are based on the reports of the other auditors. 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 of America. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the District's preparation and fair
INTEGRITY ......... SERVICE ......... EXPERIENCE
Tax Division
12621 World Plaza Lane, Building 55 - Fort Myers, FL 33907 - Phone: (239) 333-2090 - Fax: (239) 333-2097
Board of Commissioners
North Collier Fire Control and Rescue District
Page 2
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management, as
well as evaluating overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Summary of Opinions
Opinion Unit
Governmental Activities
General Fund
Impact Fee Fund
Inspection Fee Fund
Firefighters' Pension Trust Fund
Opinions
Unmodified Opinions
Type of Opinion
Unmodified
Unmodified
Unmodified
Unmodified
Unmodified
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, each major
fund, the non -major fund and the fiduciary fund type of North Collier Fire Control and Rescue District as of
September 30, 2017, and the respective changes in financial position, for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Matter of Emphasis
During the year ended September 30, 2017, the District's unrestricted net asset balance remained a deficit of
$3,046,464, due substantially to recording the current year actuarially determined OPEB increase in the liability of
$743,237 and the District's increase in its proportionate share of its pension liability of $686,291. The total OPEB
and net pension liability at September 30, 2017 were $3,755,838 and $16,738,173, respectively. This is a non-cash
actuarially determined liability related to the future cost of allowing retirees to remain on the District's health care
policy and for paying a portion of retiree coverage. The pension liability is a non cash actuarially determined
liability for the District's participation in the State's FRS defined benefit retirement system. The District's fund
balance remains approximately equal to three (3) months budgeted expenditures. Our opinion was not modified
for this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis on pages i -xi, Schedule of the District's Proportionate Share of the Net Pension
Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement
System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability - Health
Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy Pension
Plan (HIS) and Notes to the Required Supplementary Information, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board which considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
Board of Commissioners
North Collier Fire Control and Rescue District
Page 3
historical context. We have applied certain limited procedures to the required supplementary information -
management's discussion and analysis (MD&A), Schedule of the District's Proportionate Share of the Net
Pension Liability - Florida Retirement System Pension Plan (FRS), Schedule of District Contributions - Florida
Retirement System Pension Plan (FRS), Schedule of the District's Proportionate Share of the Net Pension Liability
- Health Insurance Subsidy Pension Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy
Pension Plan (HIS), and Notes to the Required Supplementary Information, as listed in the table of contents, 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 required supplementary information - management's discussion and analysis
(MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability - Florida Retirement
System Pension Plan (FRS), Schedule of District Contributions - Florida Retirement System Pension Plan (FRS),
Schedule of the District's Proportionate Share of the Net Pension Liability - Health Insurance Subsidy Pension
Plan (HIS), Schedule of District Contributions - Health Insurance Subsidy Pension Plan (HIS), and Notes to the
Required Supplementary Information, as listed in the table of contents, because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Other Required Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise North Collier Fire Control and Rescue District's basic financial statements. The required
supplementary information other than MD&A - budgetary comparison information is presented for purposes
of additional analysis and is not a required part of the basic financial statements. The required supplementary
information other than MD&A budgetary comparison 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. Such information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the required
supplementary information other than MD&A - budgetary comparison information is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the North Collier Fire Control and Rescue District's basic financial statements. The accompanying
Schedule of Expenditures of Federal Awards - year ended September 30, 2017 as required by the U.S. Office of
Management and Budget Uniform Guidance, "U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" is presented for
purposes of additional analysis and is 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. Such information has been subjected to the auditing
procedures applied in the audit of the 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
accompanying Schedule of Expenditures of Federal Awards for the year ended September 30, 2017 is fairly stated,
in all material respects, in relation to the basic financial statements as a whole.
Board of Commissioners
North Collier Fire Control and Rescue District
Page 4
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The combining financial statements as listed in the table of
contents, are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining financial statements are the responsibility of management and were derived from and relate directly
to the underlying accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the combining financial statements are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the District's basic financial statements. The Exhibit - Management's Response to Independent
Auditor's Report to Management is not a required part of the basic financial statements but is required by
Government Auditing Standards. Such information has not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on it.
Otter Reporting Required by Section 218.415, Florida Statutes
In accordance with Section 218.415, Florida Statutes, we have also issued a report dated February 23, 2018, on
our consideration of North Collier Fire Control and Rescue District's compliance with provisions of Section
218.415, Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and
the results of that testing, and to provide an opinion on compliance with the aforementioned Statute. That
report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415, Florida Statutes
in considering North Collier Fire Control and Rescue District's compliance with Section 218.4I5, Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 23, 2018, on
our consideration of the District's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contract and grant agreements and other matters. The purpose of
that report is 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 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 North Collier Fire Control and Rescue District's internal control over financial
reporting and compliance.
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
February 23, 2018
MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
Management's Discussion and Analysis
of Financial Statements FYE September 30, 2017
This Discussion and Analysis of the North Collier Fire Control & Rescue District's ("The
District") basic financial statements is provided to assist the reader in understanding the
District's financial activities and significant changes in ending financial position for the
fiscal year ended September 30, 2017. These statements include the requirements of
GASB Statements #34 and #68 and incorporate those annual reporting requirements, as
well as the financial statement format and presentation.
Contained within are the basic financial statements, consisting of the government -wide
financial statements, governmental fund and fiduciary fund financial statements and
related notes to the financial statements. This Discussion and Analysis will also provide
an analytical overview of these statements, including comparisons of the District's
financial position at September 30, 2017 versus September 30, 2016.
District Highlights
1. At the conclusion of fiscal year 2017, the District's assets exceeded its liabilities,
resulting in net assets of $28,256,992 as compared to net assets at September 30,
2016 of $27,105,254.
2. The District had ($3,046,464) deficit of unrestricted net assets at September 30, 2017
as compared to ($4,523,592) of unrestricted net assets at September 30, 2016. The
amount of unrestricted net assets decreased by $1,477,128.
3. Total revenues on the government -wide funds basis decreased $81,705 or .01 %
percent, in comparison to the prior year.
4. Total expenses on the government -wide basis decreased by $5,934,867 or 15%
percent, in comparison to the prior year.
Government -wide Financial Statements
Government -wide financial statements (Statement of Net Position and Statement of
Activities found on pages 5 and 6) are intended to allow a reader to assess a
government's operational accountability. Operational accountability is defined as the
extent to which the government has met its operating objectives efficiently and
effectively, using all resources available for that purpose, and whether it can continue to
meet its objectives for the foreseeable future. Government -wide financial statements
concentrate on the District as a whole and do not emphasize fund types.
The Statement of Net Position (page 5) presents information on all of the District's assets
and liabilities, with the difference between the two reported as net assets. The District's
capital assets are included in this statement and reported net of their accumulated
depreciation.
The Statement of Activities (page 6) presents revenue and expense information showing
how the District's net assets changed during the fiscal year. Both statements are
measured and reported using the economic resource measurement focus (revenues and
expenses) and the accrual basis of accounting (revenue recognized when earned and
expense recognized when incurred).
BJB/bb 3-22-18
Governmental Fund Financial Statements
The accounts of the District are organized on the basis of governmental funds, each of
which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self -balancing accounts that comprise its assets,
liabilities, fund equity or retained earnings, revenues and expenditures. Government
resources are allocated to and accounted for in individual funds based upon the purpose
for which they are to be spent and the means by which spending activities are controlled.
Governmental fund financial statements (found on pages 7 and 9) are prepared on the
modified accrual basis using the current financial resources measurement focus. Under
the modified accrual basis of accounting, revenues are recognized when they become
measurable and available as net current assets.
Fiduciary Fund
The fiduciary fund is used to account for resources held for the benefit of retired
employees that participated in the District's Firefighters' Pension Plan (Plan2). The
fiduciary funds are not reflected in the government -wide financial statements because the
resources of this fund are not available to support the District's programs. The
accounting used for the fiduciary fund is much like that used for governmental
proprietary funds. The fiduciary fund financial statements can be found on pages 11 and
12.
Notes to the Financial Statements
The notes to the financial statements explain in detail some of the data contained in the
preceding statements and begin on page 13. These notes are essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Government -Wide Financial Analysis
The government -wide financial statements are designed so that the user can determine if
the District's financial condition is better or worse than the prior year.
B7B/bb 3-22-18 11
The following is a Condensed Summary Statement of Net Position for the District
(Primary Government) at September 30, 2017 and 2016:
Summary Statement of Net Position
September 30
Assets:
2017
2016
Current and Other Assets
$12,632,056
$16,150,216
Capital Assets
33,961,755
32,071,231
Total Assets
46,593,811
48,221,447
Deferred Outflows - Pensions
16,996,941
10,196,042
Liabilities:
Current Liabilities
3,994,787
2,949,560
Non -Current Liabilities
24,897,875
21,503,983
Total Liabilities
28,892,662
24,453,543
Net Position:
Deferred Inflows - Pensions
6,441,098
6,858,692
Net Investment in Capital Assets
31,283,401
31,623,903
Restricted
20,055
4,943
Unrestricted (deficit)
(3,046,464)
(4,523,592)
Total Net Position
$28,256,992
$ 27,105,254
Current and other assets represent 27 percent of total assets at September 30, 2017, as
compared to 33 percent at September 30, 2016. Current assets at September 30, 2017 are
comprised of unrestricted cash balances of $8,599,078, restricted cash of $2,105,566, due
from other governments of $355,117, other receivables of $396,317 and other assets of
$1,175,978. The balances of unrestricted cash represent amounts that are available for
spending at the discretion of the Board of Fire Commissioners of the District. Restricted
cash balances are comprised of the impact fee funds restricted for the purchase of capital
assets, and unspent inspections fee revenue restricted to support the inspection of new
construction.
The net investment in capital assets represent 111 percent of net assets at September 30,
2017, as compared to 117 percent at September 30, 2016. These assets are comprised of
land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated
depreciation, and the outstanding related debt used to purchase the assets. The assigned
fund balance of $7,744,006 represents resources available for spending at September 30,
2017. However, the District's Board has specifically assigned those resources to
particular uses.
BJB/bb 3-22-18 iii
Summary of Revenues, Expenses and Changes in Net Assets
For the Years Ended September 30, 2017 and September 30, 2016
Revenues:
General Revenues
Ad Valorem Taxes
Charges for Services
Program Revenues
Grants
Miscellaneous
Impact Fees
Investment Earnings
Gain (Loss) on Disposition of
Capital Assets
Other
Total Revenues
Expenses:
Public Safety—Fire/ Rescue Service
Increase (Decrease) in Net Position
Net Position -Beginning of Year
Net Position -End of Year
BJB/bb 3-22-18 iv
2017 2016
$30,739,575 $28,115,468
2,154,236 2,249,466
1,148,036 671,753
196,157
2,493,945
61,853
54,184
(67,538)
(71,583)
519,171
1,319,962
34,751,490
34,833,195
33,599,752
39,534,619
1,151,738
(4,701,424)
27,105,254
31, 806,678
$28,256,992
$27,105,254
The assessed value of the property within the North Naples Service Delivery Area
increased 9.5 percent for the 2016-2017 fiscal year as compared to the prior year's
assessed value, resulting in an increase in Ad Valorem tax revenues of $2,156,846. The
property values in the North Naples Service Delivery Area decreased by 25 percent
during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue. While
property values have increased between 2012 and 2017, property value in the North
Naples Service Delivery Area is still 1 percent lower FYE 9-30-17 than it was in FYE 9-
30-07.
The Board adopted a millage rate of 0.95 mils in the North Naples Service Delivery Area
taxing unit, or $0.95 for every $1,000 of taxable property value. This millage rate was
6.51 percent more than the rolled back rate (the taxing rate necessary to generate the
same Ad Valorem revenue as was generated during the 2015-2016 fiscal year) of .8919.
The assessed value of the property within the Big Corkscrew Island Service Delivery
Area increased just under 12 percent for the 2016-2017 fiscal year as compared to the
prior year's assessed value, resulting in an increase in Ad Valorem tax revenues of
$467,261. The property values in the Big Corkscrew Island Service Delivery Area
decreased by 66 percent during the fiscal years 2007-2012, resulting in a decrease in Ad
Valorem revenue. While property values have increased between 2012 and 2017,
property value in the Big Corkscrew Island Service Delivery Area is still 49 percent
lower FYE 9-30-17 than it was in FYE 9-30-07.
The Board adopted a millage rate of 3.45 mils in the Big Corkscrew Island Service
Delivery Area taxing unit, or $3.45 for every $1,000 of taxable property value. This
millage rate was 6.20 percent more than the rolled back rate (the taxing rate necessary to
generate the same Ad Valorem revenue as was generated during the 2015-2016 fiscal
year) of 3.2485.
Prior to the 2007-2008 fiscal year, the increase in Ad Valorem revenue resulting from the
increase in property value was sufficient to provide adequate funds to support
operational, capital and reserve financial requirements in the District without increasing
the millage rate. While property values have been on the increase over the last few years,
the increases have not been sufficient to prevent the use of reserves to fund capital
purchases.
The following chart identifies the change in appraised property values in the District by
service delivery area and the millage rate maintained by the District.
BIB/bb 3-22-18 v
Big Corkscrew SDA Property Value
S.000,000,000
S2,SOO.000,000
$2,000,000 000
sz oo.00G,oOc
S1,OOU,(I;lU.000
SSOU,000AOG
5
�I11
2017 201t 2[: 2012 . 2010 «U9 2002 '',UU7 2006 2J:`, 2,154 29,' 2002 2001 2000 1999 1G93 197 :99b
North Naples SDA Property Value
35,000,00g00G
S31,000 000SIC
>27.000.00C 1,100
,20,000,000 .000
<_15,000,000,000
$10,0U(i,000.000
S5;000,000,00o
5-
201 2016 ._ 201- A,1 11 2010 A
BJB/bb 3-22-18
U.9 2006 2007 2000 2005 X
V1
1111111
04 2003 2002 2001_ 2000 1999 1998 1997.
Fund Balance — Governmental Fund Financial Statements
Historically, the Board of Fire Commissioners' directive was to utilize the fund balance
and cash reserves of the General Fund to fund only capital purchases and improvements,
and to maintain the District's financial position. However, specific circumstances during
the 2016-2017 fiscal year required the use of reserves to fund operating expenses. The
District was challenged with two significant hurricanes (Matthew and Irma) and the worst
brush fire season in more than 20 years, resulting in significant expenses to the General
Fund. Second, the District's Chapter 175 Firefighters' Pension Fund revised plan
assumptions, including mortality rates and investment return rates, which resulted in a
significant increase in the District's required pension contribution. These factors resulted
in the District utilizing $2.7 million of reserves to fund these operating expenses. The
remaining $1.6 million of reserves used were for capital purchases. The total fund
balance of the General Fund was $8,919,984 at September 30, 2017, including the
nonspendable amount of $1,175,978 restricted for prepaid expenses, and $7,744,006 of
assigned reserves. This fund balance reflects a decrease of $4,362,606 (used as identified
above) as compared to the fund balance at the year ended September 30, 2016. It should
be noted that the District anticipates reimbursement of approximately $1 million from
FEMA for many of the Hurricane Irma expenses incurred. Receipt of these
reimbursement funds is expected sometime during the 2018-2019 fiscal year, and will be
used to replenish the District's General Fund reserves.
While assigned reserves have been established and maintained in accordance with
anticipated future needs of the District, it must be noted that the need may arise for the
Board to unassign a portion of these reserves to fund the District's operations should
property values fall or other unforeseen circumstances arise. The following General Fund
Assigned Reserves were approved for the fiscal year ended September 30, 2017:
NonSpendable Fund Balance Amount
General Fund Prepaid Expenses 1,175.978
Assigned Fund Balance Amount
Operating Reserve — First Quarter $ 6,588,668
Minimum Operating Reserve per Policy 1,155,338
Total Assigned Reserves 7.744.006
Total General Fund Reserves 8.919.984
The assigned reserves have been established by the Board of Fire Commissioners to meet
the future needs of the District, specifically operating expenses for the first quarter of the
fiscal year prior to receipt of Ad Valorem revenue.
Impact Fees
With the creation of the North Collier Fire Control and Rescue District in January 2015,
an impact fee study was performed to establish impact fee rates for the new District.
However, that study was not completed and new rates were not adopted until October 1,
2016. Therefore, each service delivery area retained their original impact fee rates and
structure until the 2016-2017 fiscal year when one impact fee rate was established
District -wide and one impact fee fund was in effect for the entire District. Total impact
BJB/bb 3-22-18 vii
fee receipts were $1,218,227, a decrease of $1,456,082 or 54 percent as compared to the
prior year. This decrease is due to a change in the structure of impact fee rates which
resulted from the 2015 Impact Fee Study. Prior year impact fee assessments were based
on a structure's square footage. The new rate structure bases fees on structure usage
classifications and the methodology utilizes population rather than emergency call
volume. Total Impact Fee Fund expenses for the 16-17 fiscal year were $215,599,
consisting of Collier County collection fees, permitting and engineering fees for vacant
land, emergency traffic signal engineering fees, and debt service payment for land
purchased in the Big Corkscrew service delivery area.
Inspection Fees
Inspection fee revenue for the year ended September 30, 2017 was $1,625,976
representing a decrease of $118,160 or 7 percent as compared to inspection fee revenue
in the prior fiscal year (2016). In June of 2014, the District terminated its Interlocal
Agreement with the Fire Code Official's office to provide fire plan review services and
assumed the responsibility for those plan reviews. As a result $794,093 of the fund's
revenue was attributable to plan review fees. The Inspection Fee Fund did not have
sufficient revenue in the 2016-2017 fiscal year to fully support the functions associated
with new construction inspections and plan reviews. Based on receipts for the first half
of the 2017-2018 fiscal year for both inspection fees and plan review fees, it is
anticipated this fund will continue to face challenges in terms of being self-supporting.
This is largely because the new construction inspection fee rates have not been increased
since 2003. The Board conducted a workshop in the Spring of 2018 and has determined
rate increases are needed. The Board further directed staff to closely monitor this fund.
Budgetary Highlights
Budget versus actual comparisons are reported in the required supplementary information
other than management's discussion and analysis on pages 78 through 90 and are
reflected by taxing subunit (service delivery area).
The amendments to General Fund revenue were necessary to reflect an increase in Ad
Valorem tax revenue received resulting in collection above the 95 percent subject to
budget requirements, to reflect a reduction in certain service fees based on actual receipts,
and to reduce cell tower rental revenue which erroneously included a one-time bonus
payment in the prior year and was incorrectly incorporated into the 16-17 budget. By
these amendments, General Fund revenue was increased by $1,964,350.
The amendments to the General Fund expenditures were a result of several factors.
Budgeted personnel expenses were increased by $2,966,027 to reflect the increase in
contribution rate for the Chapter 175 Firefighters' Pension Plan resulting from the change
in actuarial assumptions, the increase in overtime related to the hurricanes and brush
fires, and an increase in worker's compensation insurance costs. Amendments were also
made to operational expenses (an increase of $110,509 mostly attributable to additional
vehicle and building maintenance costs, and expenses relating to Hurricane Irma), debt
service (a reduction of $39,999 to reclass Enterprise vehicle leases) and capital expenses
(a decrease of $393,037) to offset some of the other category increases.
BJB/bb 3-22-18 viii
Capital Assets
Non -depreciable capital assets include land and construction in progress. Depreciable
assets include buildings, improvements other than buildings, equipment, furniture and
vehicles.
The following is a schedule of the District's capital assets as of September 30, 2017 and
2016.
Capital Assets
September 30
Capital Assets
2017
2016
Land
$12,823,117
$12,823,117
Construction in Progress
1,296,888
1,182,089
Total Capital Assets not Depreciated
14,120,005
14,005,206
Assets Held Under Capital Lease
2,720,300
160,240
Buildings
20,475,332
20,170,551
Vehicles
9,000,165
10,699,510
Office Equipment
1,337,546
1,189,683
Equipment & Machinery
4,008,407
4,265,229
Total Capital Assets Being Depreciated
37,541,750
36,485,213
Accumulated Depreciation
Assets Held Under Capital Lease
(288,626)
(91,249)
Buildings
(7,293,433)
(6,840,205)
Vehicles
(6,597,072)
(7,775,210)
Office Equipment
(686,173)
(669,984)
Equipment & Machinery
(2,834,696)
(3,042,540)
Total Accumulated Depreciation
(17,700,000)
(18,419,188)
Total Capital Assets being Depreciated,
Net
19,841,750
18,066,025
Capital Assets — Net of Depreciation
33,961,755
32,071,231
Less: Capital Lease/Note Payables
(2,678,354)
(447,328)
Net Assets Invested in Capital Assets
Net of Related Debt
$31,283,401
$31,623,903
Significant capital asset purchases made during the fiscal year ended September 30, 2017
include:
1. Three replacement fire engines and one replacement ladder truck totaling
$2,560,060.
2. Three replacement sets of hydraulic tools totaling $87,572.
3. Three performance load stretchers and power packs for squad units purchased in
previous year totaling $53,595.
4. Other replacement fire equipment $44,685.
BJB/bb 3-22-18 A
5. Two replacement thermal imaging cameras totaling $12,050.
6. Fifty-one sets of replacement Bunker Gear totaling $104,542.
7. Replacement bay doors and training tower renovations totaling $197,385.
8. Eight replacement mobile data terminals (computers in fire engines) totaling
$35,272.
9. Video conferencing hardware totaling $131,972.
10. Apparatus mobile lift totaling $52,833.
For additional information on the District's capital assets, see Note E on pages 36 and 37.
Debt Administration
As of September 30, 2017, the District had long term obligations of $25,200,645, as
compared to $21,590,860 at September 30, 2016 an increase of $3,609,785 or 17 percent.
The significant increase is largely due to the increase in FRS liability totaling $1,129,118
and the initiation of a capital lease to purchase three pumper trucks and one ladder truck
of $2,546,268. That debt consists of:
1. Compensated absences (accrued vacation liability) in the amount of $2,028,280,
as compared to $2,079,049 at September 30, 2016. The decrease in this liability
is due to an increase in the number of District employees who entered the DROP
retirement program and were paid in full for accumulated vacation absences.
2. OPEB obligation of $3,775,838 as compared to $3,012,601 at September 30,
2016, representing post employment health insurance obligations pursuant to
GASB No. 45. The increase in this obligation is due to the increase in the number
of employees and the unification of the Collective Bargaining Agreement.
3. Capital leases for medical equipment and fire apparatus identified above in the
total amount of $2,333,354. The lease to purchase agreement for 12 Lucas Chest
Compressors was entered into in 2013 as and is a principal only lease, with no
associated interest cost. The lease purchase agreement for the three fire engines
(pumpers) and one ladder truck was entered into on January 15, 2016.
4. Note payable for the purchase of land in the amount of $345,000.
5. Pension liability (FRS) in the amount of $11,477,584 (see Note F).
6. Pension liability (HIS) in the amount of $2,270,390 (see Note F).
7. Pension liability (Ch. 175) in the amount of $2,990,199 (see Note F).
Economic Facts and Next Year's Budget Millage Rates
The following factors were taken into consideration when the budget for the fiscal year
ending September 30, 2018 was prepared:
1. Appraised taxable property values increased by $2,308,504,636, or 8 percent for
tax year 2017 (FY 2018) in the North Naples service delivery area as compared to
an increase of 9 percent in 2016. In the Big Corkscrew service delivery area,
taxable property values increased by $202,204,923 or 15 percent for tax year
2017 (FY 2018) as compared to an increase of 12 percent in 2016.
2. The Board adopted a slightly increased millage rate of 1.00 mils in the North
Naples service delivery area and 3.50 mils in the Big Corkscrew service delivery
area for the fiscal year ending September 30, 2018. The Board believes this
modest increase was necessary to replace some of the reserves used in the 16-17
BJB/bb 3-22-18 x
year, especially with the anticipated decrease to revenue in the future which will
result in the initiation of an additional homestead exemption. The Board has
expressed the desire to continue to move towards one unified taxing rate District
wide, and is considering the alternative of the addition of a non -ad valorem fire
fee assessment.
3. No use of General Fund reserves has been budgeted; addition to reserves or debt
reduction in the amount of $1.3 million is budgeted. Capital purchases are
limited to replacement air conditioning units and bay doors totaling $64,000,
replacement fire equipment in the amount of $50,000, replacement protective gear
in the amount of $100,000, medical equipment in the amount of $85,000 and
computer equipment totaling $65,000.
Request for Information
This financial report is designed to provide the reader an overview of the District.
Questions regarding any information provided in this report should be directed to: Becky
Bronsdon, Chief Financial Officer, North Collier Fire Control & Rescue District, 1885
Veteran's Park Drive, Naples, FL 34109, 239-597-3222, e-mail:
bbronsdon@northcollierfire.com.
BJB/bb 3-22-18 xi
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 107
STATEMENT OF NET POSITION
September 30, 2017 Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents $ 8,599,078
Restricted cash and cash equivalents 2,105,566
Investments -
Due from other governments 355,117
Other receivables 396,317
Other assets 1,175,978
Total current assets 12,632,056
Noncurrent assets:
Capital assets:
Land 12,823,117
Construction in progress 1,296,888
Depreciable buildings, equipment, and vehicles
(net of $17,700,000 accumulated depreciation) 19,841,750
Total noncurrent assets 33.961.755
TOTAL ASSETS 46,593,811
DEFERRED OUTFLOWS OF RESOURCES - PENSIONS 16,996,941
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses
1,419,774
Retainage payable
-
Contract deposits
7,500
Unearned revenue
2,264,743
Current portion of long-term obligations
302,770
Total current liabilities
3,994,787
Noncurrent liabilities:
Noncurrent portion of long-term obligations
24,897,875
TOTAL LIABILITIES
28,892,662
DEFERRED INFLOWS OF RESOURCES - PENSIONS
6,441,098
NET POSITION
Net investment in capital assets 31,283,401
Restricted 20,055
Unrestricted (deficit) (3,046,464)
TOTAL NET POSITION $ 28,256,992
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 6 of 107
STATEMENT OF ACTIVITIES
Year Ended September 30, 2017
INCREASE IN NET POSITION 1,151,738
NET POSITION - Beginning of the year 27,105,254
NET POSITION - End of the year $ 28,256,992
The accompanying notes are an integral part of this statement.
Governmental
Activities
EXPENSES
Governmental Activities
Public Safety - Fire Protection
Personnel services
$ 26,832,489
Operating expenses
5,080,145
Depreciation
1,605,109
Interest and fiscal charges
82,009
TOTAL EXPENSES - GOVERNMENTAL ACTIVITIES
33,599,752
PROGRAM REVENUES
Charges for services
2,154,236
Operating grants and contributions
1,148,036
NET PROGRAM EXPENSES
30,297,480
GENERAL REVENUES
Ad Valorem taxes
30,739,575
Impact fees
196,157
Interest
61,853
Loss on disposition of capital assets
(67,538)
Other
519,171
TOTAL GENERAL REVENUES
31,449,218
INCREASE IN NET POSITION 1,151,738
NET POSITION - Beginning of the year 27,105,254
NET POSITION - End of the year $ 28,256,992
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2017
Total
General Impact Fee Inspection Fee Governmental
Fund Fund Fund Funds
ASSETS
Cash and cash equivalents $ 8,599,078 $ - $ - $ 8,599,078
Restricted cash and cash equivalents - 2,091,286 14,280 2,105,566
Investments - - - -
Due from other governments 279,208 55,854 20,055 355,117
Due from other funds 419,713 119,556 405,433 944,702
Other receivables 396,317 - - 396,317
Prepaid expenses 1,175,978 1,175,978
TOTAL ASSETS $ 10,870,294 $ 2,266,696 $ 439,768 $ 13,576,758
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $ 1,417,821 $ 1,953 $ $ 1,419,774
Retainage payable - - -
Due to other funds 524,989 419,713 944,702
Contract deposits 7,500 - - 7,500
Unearned revenue - 2,264,743 2,264,743
TOTAL LIABILITIES 1,950,310 2,266,696 419,713 4,636,719
FUND BALANCE
Nonspendable 1,175,978 - - 1,175,978
Restricted - 20,055 20,055
Assigned 7,744,006 - 7,744,006
Unassigned - - -
TOTAL FUND BALANCE 8,919,984 20,055 8,940,039
TOTAL LIABILITIES AND
FUND BALANCE $ 10,870,294 $ 2,266,696 $ 439,768 $ 13,576,758
The accompanying notes are an integral part of this statement.
Page 7 of 107
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 8 of 107
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30, 2017
Amount
Total fund balance of governmental funds $ 8,940,039
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds.
Capital assets not being depreciated:
Land
12,823,117
Construction in progress
1,296,888
14,120,005
Governmental capital assets being depreciated:
Building, equipment and vehicles
37,541,750
Less accumulated depreciation
(17,700,000)
19,841,750
Deferred outflows and deferred inflows related to pensions are applied to
future periods and, therefore, are not reported in the governmental funds.
Deferred outflows - FRS/HIS
7,359,845
Deferred inflows - FRS/HIS
(3,304,686)
Deferred outflows - FPT
9,637,096
Deferred inflows - FPT
(3,136,412)
10,555,843
Long-term obligations are not due and payable in the current period
and, therefore, are not reported in the governmental funds.
Net OPEB obligation
(3,755,838)
Net pension liability - FRS
(11,477,584)
Net pension liability - HIS
(2,270,390)
Net pension liability - FPT
(2,990,199)
Capital leases
(2,333,354)
Note payable
(345,000)
Compensated absences
(2,028,280)
(25,200,645)
Elimination of interfund amounts:
Due to other funds
(944,702)
Due from other funds
944,702
Total net position of governmental activities
$
28,256,992
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended September 30, 2017
Total
General Impact Fee Inspection Fee Governmental
Fund Fund Fund Funds
REVENUES
Current
Ad Valorem taxes $
30,739,575 $
$
- $
30,739,575
Intergovernmental revenue:
Personnel services
31,192,566
-
State firefighter supplement
136,156
-
17,460
136,156
Federal grants
1,011,880
125,498
- 3,595,956
1,011,880
Charges for services:
Principal reduction
257,742
Inspection fees and other
529,173
Interest and fiscal charges
830,970
1,360,143
Plan review fees
-
39,919,112
794,093
794,093
Impact fees
-
196,157
-
196,157
Miscellaneous:
Interest
56,064
4,876
913
61,853
Other
504,605
14,566
-
519,171
TOTALREVENUES
32,977,453
215,599
1,625,976
34,819,028
EXPENDITURES
Current
Public safety
Personnel services
31,192,566
-
1,479,657 32,672,223
Operating expenditures
4,931,478
17,460
131,207 5,080,145
Capital outlay
3,470,458
125,498
- 3,595,956
Debt service:
Principal reduction
257,742
57,500
315,242
Interest and fiscal charges
66,868
15,141
- 82,009
TOTAL EXPENDITURES
39,919,112
215,599
1,610,864 41,745,575
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES (6,941,659)
OTHER FINANCING SOURCES AND USES
Proceeds from capital lease 2,546,268
Proceeds from disposition of capital assets 32,785
Transfers in -
Transfers out -
TOTAL OTHER FINANCING SOURCES
AND USES 2,579,053
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES
FUND BALANCE - Beginning of the year
FUND BALANCE - End of the year
(4,362,606)
15,112 (6,926,547)
- 2,546,268
32,785
2,579,053
15,112 (4,347,494)
13,282,590 4,943 13,287,533
$ 8,919,984 $ $ 20,055 $ 8,940,039
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE
OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30, 2017
Net change (revenues and other financing sources over (under) expenditures
and other financing uses) in fund balance - total governmental funds
The increase (change) in net position reported for governmental activities
in the Statement of Activities is different because:
Governmental funds report capital outlays as expenditures.
In the Statement of Activities, however, the cost of those assets
is allocated over their estimated useful lives and reported as
depreciation expense. The loss on disposition of capital assets
decreases the net position.
Plus: expenditures for capital assets 3,595,956
Less: proceeds on disposition of capital assets (32,785)
Less: loss on disposition of capital assets (67,538)
Less: current year depreciation (1,605,109)
The issuance of debt is reported as a financing source in governmental
funds and thus contributes to the change in fund balance. In the
Statement of Net Position, however, issuing debt increases long-term
liabilities and does not affect the Statement of Activities.
Similarly, repayment of principal is an expenditure in the
governmental funds but reduces the liability in the Statement of
Net Position.
Borrowings (proceeds from issuance):
Less: capital lease (2,546,268)
Repayments (principal retirement):
Plus: capital leases 257,742
Plus: note payable 57,500
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 the governmental funds.
Less: transfers in
Plus: transfers out
(Increase) decrease in net pension liability - FRS
(1,129,118)
(Increase) decrease in net pension liability - HIS
238,919
(Increase) decrease in net pension liability - FPT
203,908
Increase (decrease) in deferred outflows
6,800,899
(Increase) decrease in deferred inflows
417,594
(Increase) decrease in Net OPEB obligation
(743,237)
(Increase) decrease in compensated absences
50,769
Increase in net position of governmental activities
The accompanying notes are an integral part of this statement.
Page 10 of 107
Amount
$ (4,347,494)
1,890,524
(2,546,268)
315,242
5,839,734
$ 1,151,738
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF FIDUCIARY NET
POSITION - FIDUCIARY FUND
September 30, 2017
ASSETS
Investments, at fair value:
Cash and cash equivalents
Fixed income mutual funds
Equity securities
U.S. Government securities
Corporate bonds
Real estate
Prepaid expenses
Due from other governments - State
Due from District
Due from employees
Due from securities sold
Accrued investment income
TOTAL ASSETS
LIABILITIES
Accounts payable
Due for securities purchased
TOTAL LIABILITIES
NET POSITION
Restricted for DROP benefits
Restricted for defined pension benefits
TOTAL NET POSITION
The accompanying notes are an integral part of this statement.
Page 11 of 107
Firefighters'
Pension
Fund
$ 2,061,811
3,235,117
40,945,186
7,517,632
9,551,757
5,972,811
69,284,314
800
1,369,167
48,161
151,455
70,853,897
88,892
17,192
106,084
746,668
70,001,145
$ 70,747,813
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION - FIDUCIARY FUND
Year Ended September 30, 2017
ADDITIONS
Contributions:
Employer
Plan members
Buybacks
State of Florida, insurance premiums
Total contributions
Investment income:
Net appreciation (depreciation) including realized gains/losses
Interest and dividends
Less: investment expenses
Net investment income (loss)
Other income
DEDUCTIONS
Benefits paid
Administrative expenses
TOTAL ADDITIONS
TOTAL DEDUCTIONS
NET INCREASE IN NET POSITION
NET POSITION - BEGINNING
NET POSITION - ENDING
The accompanying notes are an integral part of this statement.
Page 12 of 107
Firefighters'
Pension
Fund
$ 2,927,841
416,608
29,067
1,369,167
4,742,683
6,462,103
1,822,433
8,284,536
(327,935)
7,956,601
1,880
12,701,164
386,546
96,323
482,869
12,218,295
58,529,518
$ 70,747,813
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
North Collier Fire Control and Rescue District (the 'District") is an independent
special taxing district located in Collier County, Florida. On January 1, 2015, the
North Collier Fire Control and Rescue District was officially formed by merging the
North Naples Fire Control and Rescue District and the Big Corkscrew Island Fire
Control and Rescue District. On February 6, 2014, the two Districts entered into an
Interlocal Agreement to merge. Each Board adopted a resolution identifying their
intent to initiate the voluntary merger process pursuant to Florida Statute Chapter
189.074. The two Districts created a proposed Joint Merger Plan which was
adopted by both Boards and ultimately put before the voters of each District by
referendum. On November 4, 2014, voters from both districts approved the
referendum to merge the two districts into one. On June 10, 2015, the Governor
signed into legislation the official enabling act of the new District via Laws of Florida
(LOF) Chapter 2015-191. The merger is intended to ensure the best possible
emergency response times, operational efficiencies and ensure long term sustainability
of the combined District. There was no impairment of capital assets as the result of
the merger, which was effective as of January 1, 2015 and no significant accounting
adjustment other than to combine the assets, liabilities and net position/fund balance
at January 1, 2015 of both Districts. The District has the general and special powers
prescribed by Florida Statute Chapters 189, 191 and 633.15. The District is
governed by a five (5) member elected Board of Commissioners. Commissioners
serve on a staggered four (4) year term basis.
The North Collier Fire Control and Rescue District provides fire control and
protection services, fire safety, inspections, code enforcement, fire hydrant
maintenance, firefighter training, and crash and fire rescue services as well as basic
and advanced life support services. In providing these services, the District operates
and maintains ten (10) stations and the related equipment and employs approximately
230 full-time professional firefighters and administrative staff.
During the year ended September 30, 2009, the North Naples Fire Control and
Rescue District entered into a joint venture agreement with Florida SouthWestern
State College (FSW) for the operation of the North Collier Fire Training Center
(NCFTC) to educate and train students as State Certified Firefighters. The North
Collier Fire Control and Rescue District is now licensed to operate the NCFTC and
FSW is the program coordinator. The District provides the training room and training
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 14 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization, continued
facilities for the NCFTC. FSW, as program coordinator, is responsible for the
operations of the NCFTC including but not limited to the screening and enrolling of
students and for screening and engaging instructors. Therefore, the activities of the
NCFTC are not included in the District's basic financial statements.
Reporting Entity
The District adheres to Governmental Accounting Standards Board (GASB)
Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by
GASB Statement Number 39, "Determining Whether Certain Organizations Are
Component Units" (GASB 39) and GASB Statement Number 61, "The Financial
Reporting Omnibus - An Amendment of GASB Statements No. 14 and No. 34"
(GASB 61).
This Statement requires the basic financial statements of the District (the primary
government) to include its component units, if any. A component unit is a legally
separate organization for which the elected officials of the primary government are
financially accountable. Based on the criteria established in GASB 14, as amended,
there are no component units required to be included or included in the District's
basic financial statements.
Government -wide Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the
Statement of Activities) report information on all of the activities of the District and do
not emphasize fund types. These governmental activities comprise the primary
government. Fiduciary funds are properly not included in the government -wide
financial statements. General governmental and intergovernmental revenues support
the governmental activities. The purpose of the government -wide financial statements
is to allow the user to be able to determine if the District is in a better or worse
financial position than the prior year. The effect of all interfund activity between
governmental funds has been removed from the government -wide financial
statements.
Government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the pension fund
financial statements. Under the accrual basis of accounting, revenues, expenses,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 15 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Government -wide Financial Statements, continued
gains, losses, assets, and liabilities resulting from exchange and exchange -like
transactions are recognized when the exchange takes place. Revenues, expenses,
gains, losses, assets, and liabilities resulting from nonexchange transactions are
recognized in accordance with the requirements of GASB Statement Number 33,
"Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33).
Amounts paid to acquire capital assets are capitalized as assets in the
government -wide financial statements rather than reported as expenditures.
Proceeds of long-term debt are recorded as liabilities in the government -wide
financial statements rather than as other financing sources. Amounts paid to reduce
long-term indebtedness of the reporting government are reported as a reduction of
the related liability in the government -wide financial statements rather than as
expenditures.
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function are 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, and 2) grants and
contributions that are restricted to meeting the operational or capital improvements of
a particular function. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
Program revenues are considered to be revenues generated by services performed
and/or by fees charged such as inspection fees, burn permits, and hydrant tests.
Fund Financial Statements
The District adheres to GASB Number 54, "Fund Balance Reporting and
Governmental Fund Type Definitions" (GASB 54). Essentially, the implementation
resulted in adoption of a fund balance policy and reclassification of the components
within fund balance.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 16 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fund Financial Statements, continued
The accounts of the District are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted
for with a separate set of self -balancing accounts that comprise its assets, liabilities,
fund equity or net position, revenues, and expenditures or expenses, as appropriate.
Government resources are allocated to and accounted for in individual funds based
upon the purpose for which they are to be spent and the means by which spending
activities are controlled.
Fund financial statements for the District's governmental funds are presented after the
government -wide financial statements. These statements display information about
major funds individually and nonmajor funds in aggregate for governmental funds. The
fiduciary fund financial statement includes financial information for the Firefighters'
Pension Trust Fund. The fiduciary fund represents assets held by the District in a
custodial capacity for the benefit of other individuals.
Governmental Funds
When both restricted and unrestricted resources are combined in a fund,
expenditures are considered to be paid first from restricted resources, as appropriate,
and then from unrestricted resources. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are considered to be available when they are
collected within the current period or soon thereafter to pay liabilities of the current
period.
The District's major funds are presented in separate columns on the governmental
fund financial statements. The definition of a major fund is one that meets certain
criteria set forth in GASB Statement Number 34, "Basic Financial Statements - and
Management's Discussion and Analysis - for State and Local Governments" (GASB
34). The funds that do not meet the criteria of a major fund are considered
non -major funds and are combined into a single column on the governmental fund
financial statements.
Separate financial statements are provided for governmental funds. Major individual
governmental funds are reported in separate columns on the fund financial statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Governmental Funds, continued
In accordance with the District's enabling documents, separate budgets within the
General Fund are maintained for the North Naples (NN) Service Delivery Area and
the Big Corkscrew Island (BCI) Service Delivery Area. Separate budgets are
required for each service delivery area until such time as when one consistent millage
rate is adopted for both service delivery areas. As such, separate service delivery
area budget vs. actual comparison statements are included in the required
supplementary information and a combining schedule is included in the other
information section as the District must maintain and report a single General Fund.
Fiduciary Fund
The Pension Trust Fund accounts for the activities of the Firefighters' Pension Trust
(FPT) Fund, which accumulates resources for the pension benefit payments to
qualified firefighters.
The net position of this fund is not considered to be part of the net position of the
District and is not available to the District's creditors.
Measurement Focus and Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the basic financial statements. Basis of
accounting relates to the timing of the measurements made, regardless of the
measurement focus applied.
The government -wide and fiduciary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting.
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 have been met.
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.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 18 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Measurement Focus and Basis of Accounting, continued
Revenues are considered to be available when they are collectible within the current
period and soon enough thereafter to pay liabilities of the current period. For this
purpose, the District considers tax revenues to be available if they are collected
within sixty days of the end of the current fiscal period.
Revenues susceptible to accrual are interest on investments, and intergovernmental
revenues. Interest on invested funds is recognized when earned. Intergovernmental
revenues that are reimbursements for specific purposes or projects are recognized
when all eligibility requirements are met.
Expenditures are generally recognized under the modified accrual basis of accounting
when the related fund liability is incurred. Exceptions to this general rule include: (1)
principal and interest on long-term debt, if any, is recognized when due; and (2)
expenditures are generally not divided between years by the recording of prepaid
expenditures.
Separate financial statements are provided for governmental funds and the fiduciary
fund, even though the latter are excluded from the government -wide financial
statements.
Non-current Government Assets/Liabilities
GASB 34 requires non-current governmental assets, such as land and buildings, and
non-current governmental liabilities, such as notes payable and capital leases, to be
reported in the governmental activities column in the government -wide Statement of
Net Position.
Major Funds
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund. It accounts for all financial
resources of the District (including both service delivery areas), except those
required to be accounted for in another fund.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 19 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Major Funds, continued
The Impact Fee Fund (the District has one combined Impact Fee Fund) consists of
fees imposed and collected by Collier County based on new construction within each
service delivery area of the District. The fees are restricted and can only be used for
certain capital expenditures associated with growth within the District.
Non-Maior Fund
The District reports the following non -major fund:
The Inspection Fee Fund is used by the District to account for the receipt and
expenditures of its Inspection and Plan Review Fee Programs. Fees are charged for
the inspection of new building construction and for fire code plan review. The fees
are collected by Collier County and are remitted to the District.
Fiduciary Fund
The Fiduciary Fund is excluded from the government -wide financial statements
because the resources of those funds are not available to support the District's
programs. The only type of fiduciary fund the District maintains is a Firefighters'
Pension Trust Fund, under Florida Statute Chapter 175, which accounts for
retirement assets held by the Plan that are payable to qualified firefighters upon
retirement.
Budgetary Information
The District has elected to report budgetary comparisons of its major funds and its
non -major fund as required supplementary information (RSI).
Investments
The District adheres to the requirements of GASB Statement Number 31,
"Accounting and Financial Reporting for Certain Investments and for External
Investment Pools," (GASB 31) in which all investments are reported at fair value.
Investments, including restricted investments, consist of certificates of deposit, U.S.
Government securities, corporate debt and equity securities, and securities of
government agencies unconditionally guaranteed by the U.S. Government.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 20 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Capital Assets
Capital assets, which include land, construction in progress, buildings, equipment and
vehicles, are reported in the government -wide Statement of Net Position.
The District follows a capitalization policy which calls for capitalization of all capital
assets that have a cost or donated value of $1,000 or more and have a useful life in
excess of one year.
All capital assets are valued at historical cost or estimated historical cost if actual
historical cost is not available. Donated capital assets are valued at their estimated
fair market value on the date donated. Public domain (infrastructure) capital assets
consisting of certain improvements other than building, including curbs, gutters and
drainage systems, are not capitalized, as the District generally does not acquire such
assets. No debt -related interest expense is capitalized as part of capital assets in
accordance with GASB 34.
Maintenance, repairs and minor renovations are not capitalized. The acquisition of
land and construction projects utilizing resources received from Federal and State
agencies are capitalized when the related expenditure is incurred.
Expenditures that materially increase values, change capacities or extend useful lives
are capitalized. Upon sale or retirement, the cost is eliminated from the respective
accounts.
Expenditures for capital assets are recorded in the fund statements as current
expenditures. However, such expenditures are not reflected as expenditures in the
government -wide statements, but rather are capitalized and depreciated.
Depreciable capital assets are depreciated using the straight-line method over the
following estimated useful lives:
Capital Asset Years
Buildings 15-30
Capital Assets acquired under Capital Lease 6
Office Equipment 3-30
Vehicles 3-10
Equipment and Machinery 3-15
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 21 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Budgets and Budgetary Accounting
The District adopted separate annual General Fund budgets for each of the two (2)
service delivery areas within the District's General Fund.
The District adopted annual budgets for the Special Revenue Funds, including the
Impact Fee Fund and the Inspection Fee Fund.
No budget was adopted or required to be adopted for the Firefighters' Pension Trust
Fund.
The District follows these procedures in establishing budgetary data for the General
Fund, the Impact Fee Fund, and the Inspection Fee Fund:
1. During the summer of each year, the District Fire Chief submits to the Board of
Commissioners a proposed operating budget for the fiscal year commencing on
the upcoming October 1. The operating budget includes proposed
expenditures and the means of financing them.
2. Public hearings are conducted to obtain citizen comments.
3. The budget is adopted by approval of the Board of Commissioners.
4. Budget amounts, as shown in these basic financial statements, are as originally
adopted or as amended by the Board of Commissioners.
5. The budget is adopted on a basis consistent with accounting principles generally
accepted in the United States of America.
6. The level of control for appropriations is exercised at the fund level.
7. Appropriations lapse at year-end.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Budgets and Budgetary Accounting, continued
Several budget amendments were approved by the Board of Commissioners during
the year ended September 30, 2017. Budgeted revenues and expenditures were
decreased as follows:
Amount
General fund - NN SDA $(1,614,635)
General fund - BCI SDA (349,715)
Total General Fund $(1,964,350)
Impact fee fund $ -
Inspection fee fund $ (393,041)
Impact Fees/Deferred Revenue
The District levies an impact fee on new construction within the District. The intent of
the fee is for growth within the District to pay for capital improvements needed due to
the growth. The fee is imposed and collected by Collier County and remitted to the
District which accounts for impact fees collected by service delivery area. The fee is
refundable if not expended by the District within six (6) years from the date of
collection. The District, therefore, records this fee as restricted cash and as unearned
revenue until the date of expenditure, at which time it is recognized as revenue and
charged to capital outlay in the fund financial statements and capital assets in the
government -wide financial statements.
Net Position
In the government -wide financial statements, net position is identified as restricted
when there are externally imposed constraints as to its use, such as through debt
covenants, by grantors, or by law.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 23 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fund Balances
The governmental fund financial statements the District maintains include
nonspendable, restricted, assigned, and unassigned fund balances. Nonspendable
fund balances are those that cannot be spent because they are either (a) not in
spendable form or (b) legally or contractually required to be maintained intact.
Criteria include items that are not expected to be converted into cash, for example
prepaid expenses.
Restricted fund balances are those that are restricted by a third party such as
inspection fees. Restricted fund balances can only be spent for the stipulated
purposes.
The District's assigned fund balances are a result of official action of the District's
Board. The District's intent is to maintain a minimum assigned fund balance level of
three (3) months of budgeted total expenditures. The assigned fund balance includes
the District's operational and capital reserves as well as its disaster reserve. At
September 30, 2017, fund balance is also assigned for a variety of specific items by
District Board action. Any use of the assigned fund balance requires the District's
Board approval.
Due To/From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded
by funds affected in the period in which the transactions are executed.
Due From Other Governments
No allowance for losses on uncollectible accounts has been recorded since the
District considers all amounts to be fully collectible.
Indirect Costs
Expenses are allocated between service and delivery areas on the same line item
based upon a Board approved cost allocation plan. For the year ended September
30, 2017, the costs were allocated on a percentage basis of 85.96% to NN SDA and
14.04% to BCI SDA.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Compensated Absences
The District's employees accumulate annual leave based on the number of years of
continuous service. Upon termination of employment, employees can receive
payment of accumulated annual leave if certain criteria are met. The costs of
accumulated annual leave benefits (compensated absences) are expended in the
respective operating funds when payments are made to employees. However, the
liability for all accrued vacation and personal leave benefits is recorded in the
government -wide Statement of Net Position.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the District because, at
present, it is not necessary in order to assure effective budgetary control or to
facilitate effective cash planning and control.
Management Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements,
and the reported amounts of revenues and expenditures during the reporting period.
Actual results could differ from those estimates.
Interfund Transactions
The District considers interfund receivables (due from other funds) and interfund
payables (due to other funds) to be loan transactions to and from other funds to cover
temporary (three months or less) cash needs. Transactions that constitute
reimbursements to a fund for expenditures/expenses initially made from it that are
properly applicable to another fund are recorded as expenditures/expenses in the
reimbursing funds and as reduction of expenditures/expenses in the fund that is
reimbursed. Such amounts are eliminated in the government -wide financial
statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 25 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Pensions
In the government -wide statement of net position, liabilities are recognized for the
District's proportionate share of each pension plan's net pension liability. For
purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Firefighters' Pension Fund (FPF), the Florida
Retirement System (FRS) and the Health Insurance Subsidy (HIS) defined benefit
plan and additions to/deductions from fiduciary net position have been determined on
the same basis as they are reported by the Plans. For this purpose, benefit payments,
(including refunds of employees' contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value for the
FPF.
The District's retirement plans and related amounts are described in a subsequent
note.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports 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 future
periods and so will not be recognized an as outflow of resources
(expense/expenditure) until then. The deferred amount on pensions is reported only
in the government -wide Statement of Net Position. The deferred outflows of
resources related to pensions are discussed in a subsequent note.
In addition to liabilities, the statement of net position reports 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 and so will not be recognized as an inflow of resources (revenue) until that
time. The deferred amount on pensions is reported only in the government -wide
Statement of Net Position. A deferred amount on pension results from the difference
in the expected and actual amounts of experience, earnings, and contributions. This
amount is deferred and amortized over the service life of all employees that are
provided with pensions through the pension plan except earnings which are amortized
over five to seven years.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Reclassifications
Certain amounts in the financial statements have been reclassed to conform with the
current presentation. These reclassifications had no effect on the results of operations
or fund equity.
Subsequent Events
Subsequent events have been evaluated through February 23, 2018, which is the date
the basic financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
Cash and cash equivalents of the primary government (exclusive of the Firefighters'
Pension Fund) were $10,704,644, of which $2,105,566 was restricted at September
30, 2017. Total cash and cash equivalents included cash on hand of $1,300 at
September 30, 2017.
Deposits
The District's deposit policy allows deposits to be held in demand deposit and money
market accounts and is consistent with Florida Statutes, Chapter 218.415(17). All
District depositories are institutions designated as qualified depositories by the State
Treasurer at September 30, 2017.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 27 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Deposits, continued
Deposits consist of the following at September 30, 2017:
District Carrying Bank
Amount Balance
Unrestricted
General Fund
Depository Accounts $ 7,666,636 $ 8,307,221
Money Market 931,142 931,142
Total General Fund $ 8,597,778 $ 9,238,363
Restricted
General Fund
Depository Accounts $ - $ -
Special Revenue Funds
Impact Fee
Depository Accounts 2,091,286 2,091,286
Inspection Fee
Depository Accounts 14,280 14,280
Total Special Revenue Funds 2,105,566 2,105,566
Total Restricted Funds $ 2,105,566 $ 2,105,566
The District's deposits were entirely covered by federal depository insurance or by
collateral pursuant to the Public Depository Security Act (Florida Statute 280) of
the State of Florida. Bank balances approximate market value.
The District held no other types of deposits during the year ended September 30,
2017.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED
Restricted Cash and Equivalents
The following is a brief description of the restrictions on cash and cash equivalents:
The Impact Fee account is used to account for the deposit of impact fees received
by both service delivery areas and are restricted for certain capital asset acquisition
associated with growth within the District. Impact fees are collected by Collier
County for the District pursuant to County ordinance and District resolution.
The Inspection Fee account is used to account for inspection fees collected for
performing new construction fire inspections within the District. Such revenue is
restricted for inspection service related costs.
NOTE C - INVESTMENTS
Firefighters' Pension Plan - Investments
Investments held in the Firefighters' Pension Trust Fund (the "Plan") totaled
$69,284,314 (including $2,061,811 in cash and cash equivalents, $3,235,117 in
mutual funds, $40,945,186 in equity securities, $17,069,389 in fixed income
securities, and $5,972,811 in real estate) at September 30, 2017. Such investments
are administered in accordance with Firefighters' Pension Board policy. This policy
provides for investments in cash and cash equivalents, money markets, mutual funds,
equities, treasury notes, federal agency guaranteed securities, corporate bonds, notes
and/or equities and real estate.
The Firefighters' Pension Trust Fund accounts for resources held to fund the
respective firefighter employee pension benefits.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 29 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
The Firefighters' Pension Trust Fund investments were held by a financial and
investment institution and are subject to certain insurances up to limits specific to the
trustee/custodian institution and retirement trust funds. These assets are subject to
loss of principal.
Investment Authorization:
The Plan's investment policy is determined by the Plan's Board of Trustees. The
policy has been designed by the Board to conduct the operations of the Plan in a
manner so that the assets will provide the pension and other benefits provided under
applicable laws. As such, the policy is designed by the Board to maximize the Plan's
asset value, while assuming risk that is consistent with the Board's risk tolerance. The
Trustees are authorized to acquire and retain every kind of property (real, personal or
mixed) and every kind of investment specifically including, but not by way of
limitation, money markets, mutual funds, bonds, debentures, stocks (preferred or
common) and other corporate obligations. Investments are carried at fair value at
September 30, 2017. Interest and dividend revenues are recorded as earned.
Purchases and sales of investments are recorded on the trade -date basis.
Unrealized gains and losses are presented as net appreciation (depreciation) in fair
value of investments on the statement of changes in fiduciary net position along with
gains and losses realized on sales of investments.
Given the inherent nature of investments, it is reasonably possible that changes in the
value of those investments will occur in the near term and that such changes could
materially affect the amounts reported (loss of principal).
Investment in all equity securities shall be limited to those listed on a major U.S. stock
exchange and limited to no more than 80% (at market) of the Plan's total asset
value. The equity position in any one company shall not exceed 5% of the Plan's total
assets at market. Investments in stock of foreign companies shall be limited to 25%
of the value of the Plan's total assets at market.
The fixed income portfolio shall be compromised of securities with a quality rating of
investment grade or higher by a major rating service. Except for Treasury and
Agency obligations, the debt portion of the Plan shall contain no more than 10% of a
given issuer irrespective of the number of differing issues.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Investment Authorization, continued:
The current target allocation at September 30, 2017, of these investments at market is as
follows:
Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to change in market interest rates. As a means of
limiting its exposure to interest rate risk, the Plan diversifies its investments by security
type and institution, and limits holdings in any one type of investment with any one
issuer with various durations of maturities.
Information about the sensitivity of the fair values of the Plan's fixed income
investments to market interest rate fluctuations is provided by the following table that
shows the distribution of the Plan's investment by maturity at September 30, 2017:
Investment Type
Investment
Long Term
Authorized
Policy -Target
Expected Real
Investments
Allocation %
Rate Return %
Domestic Equities
35-55%
7.5%
Fixed Income
15-40%
2.5%
TIPS
0-10%
Not Available
Real Estate
0-15%
4.5%
International Equities
10-25%
8.5%
International Fixed Income
0-10%
3.5%
Global Tactical Asset Allocation
0-15%
3.5%
Cash and Cash Equivalents
Minimal
Minimal
Interest Rate Risk:
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to change in market interest rates. As a means of
limiting its exposure to interest rate risk, the Plan diversifies its investments by security
type and institution, and limits holdings in any one type of investment with any one
issuer with various durations of maturities.
Information about the sensitivity of the fair values of the Plan's fixed income
investments to market interest rate fluctuations is provided by the following table that
shows the distribution of the Plan's investment by maturity at September 30, 2017:
Investment Type
Fair Value
Corporate bonds
$ 9,551,757
Mutual funds
3,235,117
U.S. Agencies
5,349,766
U.S. Treasuries
2,167,866
$ 20,304,506
Investment Maturities (in
years)
Less than 1 I to 5
6 to 10
$ 376,697 $ 4,687,201
$ 2,728,601
- 2,232,231
744,077
- -
234,119
- 855,542
-
$ 376,697 $ 7,774,974
$ 3,706,797
More than 10
$ 1,759,258
258,809
5,115,647
1,312,324
$ 8,446,038
Credit Risk:
Credit risk is the risk that a security or a portfolio will lose some or all of its value due
to a real or perceived change in the ability of the issuer to repay its debt. The Plan's
investment policy utilizes portfolio diversification in an effort to mitigate this risk.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Credit Risk, continued:
The following table discloses credit rating by fixed income investment type at
September 30, 2017, if applicable:
* Obligations of the U.S. government or obligations explicitly guaranteed by the U.S.
government are not considered to have credit risk and do not have purchase limitations.
Concentration of Credit Risk:
The investment policy of the Plan contains limitations on the amount that can be
invested in any one equity issuer as well as maximum portfolio allocation percentages.
There were no individual equity investments that represented 5% or more of Plan net
position at September 30, 2017. In addition, the Plan contains limitations on the
amount that can be invested in any one debt issuer, except for the debt securities
issued by the U.S. Government. There were no investments in non -U.S. Government
debt securities that represented 10% or more of Plan net position at September 30,
2017.
Custodial Credit Risk:
This is the risk that in the event of the failure of the counterparty, the plan will not be
able to recover the value of its investments or collateral securities that are in the
Fair
Percentage of
Value
Portfolio
Quality rating of credit risk debt securities
A
$ 674,198
1.00 %
Al
481,984
0.72
A2
653,334
0.97
A3
2,097,000
3.12
AA
212,224
0.32
Aa2
498,222
0.74
Aa3
287,585
0.43
AAA
3,034,071
4.51
B
318,982
0.47
Bal
47,190
0.07
Baal
3,278,358
4.88
Baal
1,250,585
1.86
Baa3
870,808
1.30
BB
652,199
0.97
BBB
1,145,555
1.70
Unrated government securities
4,802,211
7.14
Total credit risk debt securities
$ 20,304,506
30.20 %
* Obligations of the U.S. government or obligations explicitly guaranteed by the U.S.
government are not considered to have credit risk and do not have purchase limitations.
Concentration of Credit Risk:
The investment policy of the Plan contains limitations on the amount that can be
invested in any one equity issuer as well as maximum portfolio allocation percentages.
There were no individual equity investments that represented 5% or more of Plan net
position at September 30, 2017. In addition, the Plan contains limitations on the
amount that can be invested in any one debt issuer, except for the debt securities
issued by the U.S. Government. There were no investments in non -U.S. Government
debt securities that represented 10% or more of Plan net position at September 30,
2017.
Custodial Credit Risk:
This is the risk that in the event of the failure of the counterparty, the plan will not be
able to recover the value of its investments or collateral securities that are in the
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Fireflehters' Pension Plan - Investments, continued
Custodial Credit Risk, continued:
possession of an outside party. This risk is generally measured by the assignment of a
rating by a nationally recognized statistical rating organization. Consistent with the
Plan's investment policy, the investments are held by the Plan's custodial bank and
registered in the Plan's name.
Foreign Currency Risk:
This is the risk that fluctuations in currency exchange rate may affect transactions
conducted in currencies other than U.S. Dollars and the carrying value of foreign
investments. The Plan's exposure to foreign currency risk is derived mainly from its
investments in international equity funds. The Plan owns shares in international
equity funds and does not own the individual securities. The investment policy limits
the foreign investments to no more than 35% of the Plan's investment balance in
equities and no more than 10% in fixed income. As of September 30, 2017, the
Plan's exposure to foreign currency risk related to foreign equity funds and bonds is
as follows:
Fair Percentage of
Value Portfolio
International equity funds and fixed income (bonds) $ 16,628,235 24E
Fair Value Measurements:
Fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the
measurement date. The Plan categorizes its fair value measurements within the fair
value hierarchy as established by generally accepted accounting principles. The fair
value hierarchy categorizes the inputs to valuation techniques used to measure fair
value into three levels based on the extent to which inputs used in measuring fair value
are observable in the market as follows:
Level 1 - Inputs to the valuation methodology are based upon quoted prices for
identical assets in active markets.
Level 2 - Inputs to the valuation methodology are based upon observable inputs for
the assets either directly or indirectly, other than those considered Level 1 inputs,
which may include quoted prices for identical assets in markets that are not
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Firefisahters' Pension Plan - Investments, continued
Fair Value Measurements, continued:
considered to be active, and quoted prices of similar assets in active or inactive
markets.
Level 3 - Inputs to the valuation methodology are based upon unobservable inputs.
Following is a description of the valuation methodologies used for asset measured at
fair value.
Common stock: Valued at the closing price reported on the New York Stock
Exchange.
Government securities: Valued using pricing models maximizing the use of
observable inputs for similar securities.
Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual
funds held by the Plan are open-ended mutual funds that are registered with the
Securities and Exchange Commission. These funds are required to publish their
daily net asset value (NAV) and to transact at that price. The mutual funds held
by the Plan are deemed to be actively traded.
Corporate bonds: Valued using pricing models maximizing the use of observable
inputs for similar securities. This includes basing the value on yields currently
available on comparable securities of issuers with similar credit ratings. When
quoted prices are not available for identical or similar bonds, the bond is valued
under a discounted cash flows approach that maximizes observable inputs, such
as current yield of similar instruments, but included adjustments for certain risks
that may not be observable, such as credit and liquidity risks or a broker quote, if
available.
Real estate: Valued at the net asset value of shares held by the Plan at year end.
The Plan has investments in private market real estate investments for which no
liquid public market exists.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Firef ghters' Pension Plan - Investments, continued
Fair Value Measurements, continued:
The following table presents the Plan's fair value hierarchy for investments at fair
value as of September 30, 2017:
Investments by fair value level
Equity securities:
Common stocks $ 19,660,566
Mutual funds 21,179,791
REIT 104,829
Total equity securities 40,945,186
Debt securities
U.S. treasury securities 2,167,866
U.S. agency securities 5,349,766
Corporate bonds 9,551,757
Fixed income mutual funds 3,235,117
Total debt securities 20,304,506
Total investments by fair value 61,249,692
Investments measured at the net asset value (NAV)
Real estate fund 5,972,811
Money market funds (exempt) 2,061,811
Total investments
$ 69,284,314
Fair Value Measurements Usin
Quoted
Prices in
Significant
Active
Other
Significant
Markets for
Observable
Unobservable
Identical Assets
Inputs
Inputs
(Level l)
(Level 2)
(Level 3)
$ 19,660,566 $ - $ -
- 21,179,791
- 104,829
19,660,566 21,284,620
2,167,866 -
- 5,349,766
9,551,757 -
3,235,117
2,167,866 18,136,640
$ 21,828,432 $ 39,421,260 $
* As required by GAAP, certain investments have not been classified in the fair value hierarchy. The fair
value amounts presented in the previous table are intended to permit reconciliation for the fair value
hierarchy to the total investment line item in the Statement of Fiduciary Net Position.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE C - INVESTMENTS, CONTINUED
Firefighters' Pension Plan - Investments, continued
Fair Value Measurements, continued:
The following table summarizes investment for which fair value is measured using the
net asset value per share practical expedient, including their relate unfunded
commitments and redemption restrictions:
Investments measured at the NAV
Redemption
Unfunded Frequency (if Redemption
Fair Value Commitments Currently Eligible Notice Period
Real estate fund $ 5,972,811 $ Quarterly 90 Days
Real estate fund: The fund is an open-ended real estate investment fund investing
primarily in core institutional office, retail, industrial, and multi -family properties
located throughout the United States. The investment is valued at NAV and its
redemption must be received by the fund 90 days prior to quarter end.
NOTE D - DUE TO/FROM OTHER FUNDS
Interfund receivables and payables at September 30, 2017, are as follows:
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2017.
Due from
Due to
Fund
Other Funds
Other Funds
General Fund:
Impact Fee Fund
$ -
$ 119,556
Inspection Fee Fund
419,713
405,433
Total General Fund
419,713
524,989
Special Revenue Funds:
Impact Fee Fund
General Fund
119,556
-
Inspection Fee Fund
General Fund
405,433
419,713
Total Special Revenue Funds
524,989
419,713
Total
$ 944,702
$ 944,702
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2017.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30, 2017:
Capital Assets Not
Being Depreciated:
Land
Construction in progress
Total Capital Assets Not
Being Depreciated
Capital Assets
Being Depreciated:
Balance
160,240
Balance
October 1
Increases/ Decreases/
Adjustments/ September 30
2016
Additions Retirements
Reclassifications 2017
1,189,683
265,499
(117,636)
$ 12,823,117
$ - $ -
$ - $ 12,823,117
1,182,089
114,799 -
- 1,296,888
331,418
14,005,206
114,799 -
- 14,120,005
Assets held under capital lease
160,240
2,560,060
-
Buildings
20,170,551
304,781
Office equipment
1,189,683
265,499
(117,636)
Vehicles
10,699,510
19,399
(1,718,744)
Equipment & machinery
4,265,229
331,418
(588,240)
Total Capital Assets
Being Depreciated
36,485,213
3,481,157
(2,424,620)
Less Accumulated
Depreciation:
Assets held under capital lease
(91,249)
(197,377)
-
Buildings
(6,840,205)
(453,228)
-
Office equipment
(669,984)
(128,657)
112,468
Vehicles
(7,775,210)
(454,511)
1,632,649
Equipment & machinery
(3,042,540)
(371,336)
579,180
Total Accumulated Depreciation
(18,419,188)
(1,605,109)
2,324,297
- 2,720,300
- 20,475,332
- 1,337,546
- 9,000,165
- 4,008,407
- 37,541,750
- (288,626)
- (7,293,433)
- (686,173)
- (6,597,072)
- (2,834,696)
(17,700,000)
Total Capital Assets being
Depreciated, Net 18,066,025 1,876,048 (100,323) - 19,841,750
Capital Assets, Net $ 32,071,231 $ 1,990,847 $ (100,323) $ - 33,961,755
Related Debt (2,678,354)
Net investment in capital assets $ 31,283,401
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED
Depreciation expense was charged to the following functions during the year ended
September 30, 2017:
Amount
General Government
Total Depreciation Expense $1,605,109
The District has capital assets held under capital leases with a total cost of
$2,720,300 at September 30, 2017. the capital assets held under capital lease has
accumulated depreciation of $288,626 and depreciation expense of $197,377
for the year ended September 30, 2017.
NOTE F - LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended
September 30, 2017:
$21,590,860 $ 4,418,623 $ (808,838) $25,200,645 $ 302,770
The following is a summary of long-term obligations at September 30, 2017:
Amount
Net OPEB obligation. Cumulative difference between annual
OPEB cost and District payments toward the cost of post
employment benefits other than pensions since GASB No. 45
transition date of October 1, 2009. (Combined SDA) $ 3,755,838
Net pension obligation - FRS pension plan. This amount is
actuarially determined through calculation based upon the
audited financial statements of the Florida FRS Plan. 11,477,584
Net pension obligation - HIS plan. This amount is
actuarially determined through calculation based upon the
audited financial statements of the Florida FRS Plan. 2,270,390
Balance
Retirements
Balance
Amounts
October 1
And
September 30
Due Within
2016
Additions
Adjustments
2017
One Year
Net OPEB obligation
$ 3,012,601
$ 743,237
$ -
$ 3,755,838
$ -
Net Pension Liability - FRS
10,348,466
1,129,1 18
-
11,477,584
-
Net Pension Liability - HIS
2,509,309
-
(238,919)
2,270,390
-
Net Pension Liability - FPT
3,194,107
-
(203,908)
2,990,199
-
Capital Leases
44,828
2,546,268
(257,742)
2,333,354
245,270
Note Payable
402,500
-
(57,500)
345,000
57,500
Compensated Absences
2,079,049
-
(50,769)
2,028,280
-
$21,590,860 $ 4,418,623 $ (808,838) $25,200,645 $ 302,770
The following is a summary of long-term obligations at September 30, 2017:
Amount
Net OPEB obligation. Cumulative difference between annual
OPEB cost and District payments toward the cost of post
employment benefits other than pensions since GASB No. 45
transition date of October 1, 2009. (Combined SDA) $ 3,755,838
Net pension obligation - FRS pension plan. This amount is
actuarially determined through calculation based upon the
audited financial statements of the Florida FRS Plan. 11,477,584
Net pension obligation - HIS plan. This amount is
actuarially determined through calculation based upon the
audited financial statements of the Florida FRS Plan. 2,270,390
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE F - LONG-TERM OBLIGATIONS, CONTINUED
Net pension obligation - Firefighters' Pension Trust (FPT) plan.
This amount is actuarially determined through calculation based
upon the audited financial statements of the FPT Plan.
$160,240 capital lease payable dated April 19, 2013, for eleven (11)
chest compression systems to financial institution over a 60 month
period ending March 2018 in equal payments of $2,671 at a zero stated
interest rate. (NN)
$2,546,268 capital lease payable dated January 15, 2016 for one (1)
ladder truck and three (3) pumper trucks payable to a financial
institution in ten (10) annual payments of $295,233 ending December
14, 2025 including interest at 2.822%.
$1,150,000 note payable dated January 1, 2003 to SunTrust Bank over
a 20 year period ending November 1, 2022 in equal annual principal
payments on November 1 of $57,500 plus accrued interest at a rate of
3.75%. The note is collateralized by Impact Fees.
Page 38 of 107
Amount
2,990,199
15,451
2,317,903
345,000
Non-current portion of compensated absences. Employees of the
Capital
District are entitled to paid vacation based on length of service and
job classification. (Combined SDA)
2,028,280
Payable
25,200,645
Less Current Portion
(302,770)
Long -Term Portion
$ 24,897,875
The annual debt service requirements at September 30, 2017, were as follows:
Total long-term debt $ 25,200,645
(1) Debt service paid through General Fund
(2) Debt service paid through Impact Fee Fund
Interest expense for the year ended September 30, 2017, was $82,009 including interest expense
on capital lease of $66,868.
Capital
Note
Years Ending
Leases Payable
Payable
Total
September 30
Principal (1)
Principal (2)
Principal
2018
$ 245,270
$ 57,500
$ 302,770
2019
236,305
57,500
293,805
2020
242,974
57,500
300,474
2021
249,831
57,500
307,331
2022
256,881
57,500
314,381
2023-2026
1,102,093
57,500
1,159,593
$ 2,333,354
$ 345,000
2,678,354
Net OPEB obligation
3,755,838
Net Pension Liability - FRS
11,477,584
Net Pension Liability - HIS
2,270,390
Net Pension Liability - FPT
2,990,199
Compensated absences
2,028,280
Total long-term debt $ 25,200,645
(1) Debt service paid through General Fund
(2) Debt service paid through Impact Fee Fund
Interest expense for the year ended September 30, 2017, was $82,009 including interest expense
on capital lease of $66,868.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 39 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS
The following three retirement plans have been established by the District:
Plan 1 - Florida Retirement System (FRS)
Plan 2 - Firefighters' Pension Trust Fund (Florida Statute 175)
Plan 3 - 401(a) Plan
Employee participation in a specific plan is based on the respective employee's
original hire date.
General Information about the Florida Retirement System
The Florida Retirement System ("FRS") was created in Chapter 121, Florida
Statutes. The FRS was created to provide a defined benefit pension plan ("Pension
Plan") for participating public employees. All District employees are participants in
the Statewide Florida Retirement System (FRS) under authority of Article X, Section
14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS
was amended in 1998 to add the Deferred Retirement Option Program ("DROP")
under the defined benefit plan and amended in 2000 to provide an integrated defined
contribution plan alternative to the defined benefit plan for FRS members effective
July 1, 2002. This integrated defined contribution pension plan is the FRS Investment
Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance
Subsidy (HIS) Program, a separate cost-sharing, multiple -employer defined benefit
pension plan to assist retired members of any State -administered retirement system in
paying the costs of health insurance.
Essentially all regular employees of the District are eligible to enroll as members of the
State -administered FRS. Provisions relating to the FRS are established by Chapters
121 and 122, Florida Statutes; Chapter 112, Part N, Florida Statutes; Chapter 238,
Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Florida
Administrative Code; wherein eligibility, contributions, and benefits are defined and
described in detail. Such provisions may be amended at any time by further action
from the Florida Legislature. The FRS is a single retirement system administered by
the Florida Department of Management Services, Division of Retirement, and
consists of two cost-sharing, multiple -employer defined benefit plans (Pension and
HIS Plans) and other nonintegrated programs. A comprehensive annual financial
report of the FRS, which includes its financial statements, required supplementary
information, actuarial report, and other relevant information dated June 30, 2017, is
available from the Florida Department of Management Services' Website
(www.dms.myflorida.com).
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 40 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
General Information about the Florida Retirement System, continued
The District's total FRS and HIS pension expense was $1,811,516 for the year
ended September 30, 2017 and is recorded in the government -wide financial
statements. Total District actual FRS and HIS retirement contribution expenditures
were $1,203,482, $1,186,368 and $761,542 for the years ended September 30,
2017, 2016 and 2015, respectively. The District contributed 100% of the required
contributions.
FRS Pension Plan
Plan Description. The FRS Pension Plan ("Plan") is a cost-sharing, multiple -
employer defined benefit pension plan, with a Deferred Retirement Option Program
(DROP) for eligible employees. The general classes of membership are as follows:
Regular Class - Members of the FRS who do not qualify for membership in the
other classes.
Senior Management Service Class (SMSC) - Members in senior management
level positions.
Special Risk Class - Members who are employed as certified firefighters and
meet the criteria to qualify for this class.
Elected Officials - Members who are elected by the voters within the District
boundaries.
Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable
service and employees enrolled in the Plan on or after July 1, 2011, vest at eight
years of creditable service. All vested members, enrolled prior to July 1, 2011, are
eligible for normal retirement benefits at age 62 or at any age after 30 years of
service, except for those members classified as special risk who are eligible for
normal retirement benefits at age 55 or at any age after 25 years of service. All
members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for
normal retirement benefits at age 65 or any time after 33 years of creditable service,
except for members classified as special risk who are eligible for normal retirement
benefits at age 60 or at any age after 30 years of service. Members of both Plans
(Pension and HIS) may include up to 4 years of credit for military service toward
creditable service. The Plan also includes an early retirement provision; however,
there is a benefit reduction for each year a member retires before his or her normal
retirement date. The Plan provides retirement, disability, death benefits, and annual
cost of living adjustments to eligible participants.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 41 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
DROP, subject to provisions of Section 121.091, Florida Statutes, permits
employees eligible for normal retirement under the Plan to defer receipt of monthly
benefit payments while continuing employment with an FRS employer. An employee
may participate in DROP for a period not to exceed 60 months after electing to
participate. During the period of DROP participation, deferred monthly benefits are
held in the FRS Trust Fund and accrue interest. The net pension liability does not
include amounts for DROP participants, as these members are considered retired and
are not accruing additional pension benefits.
Benefits Provided. Benefits under the Plan are computed on the basis of age,
and/or years of service, average final compensation, and credit service. Credit for
each year of service is expressed as a percentage of the average final compensation.
For members initially enrolled before July 1, 2011, the average final compensation is
the average of the five highest fiscal years' earnings; for the members initially enrolled
on or after July 1, 2011, the average final compensation is the average of the eight
highest fiscal years' earnings. The total percentage value of the benefit received is
determined by calculating the total value of all service, which is based on retirement
plan and/or the class to which the member belonged when the service credit was
earned. Members are eligible for in -line -of -duty or regular disability and survivors'
benefits. The following chart shows the percentage value of each year of service
credit earned:
Class, Initial Enrollment, and Retirement Age/Years of Service
%Value
Regular Class and elected members initially enrolled before July 11 2011
Retirement up to age 62, or up to 30 years of service
1.60
Retirement at age 63 or with 31 years of service
1.63
Retirement at age 64 or with 32 years of service
1.65
Retirement at age 65 or with 33 or more years of service
1.68
Regular Class and elected members initially enrolled on or after July 1, 2011
Retirement up to age 65 or up to 33 years of service
1.60
Retirement at age 66 or with 34 years of service
1.63
Retirement at age 67 or with 35 years of service
1.65
Retirement at age 68 or with 36 or more years of service
1.68
Special Risk Regular
Service from December 1, 1970 through September 30, 1974
2.00
Service on or after October I, 1974
3.00
Senior Management Service Class
2.00
Elected Officers' Class
3.00
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in
the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011,
the annual cost -of -living adjustment is 3 percent 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 percent determined by dividing the sum of the
pre -July 2011 service credit by the total service credit at retirement multiplied by 3
percent. Plan members initially enrolled on or after July 1, 2011, will not have a
cost -of -living adjustment after retirement.
Contributions. The Florida Legislature establishes contribution rates for
participating employers and employees. Contribution rates during the year ended
September 30, 2017 were as follows:
Percent of Gross Salary*
Class Employee Employer (1) Employer (3)
Florida Retirement System, Regular 3.00 7.52 7.92
Florida Retirement System, Senior Management Service 3.00 21.77 22.71
Florida Retirement System, Special Risk 3.00 22.57 23.27
Deferred Retirement Option Program - Applicable
to Members from All of the Above Classes 0.00 12.99 13.26
Florida Retirement System, Reemployed Retiree (2) N/A N/A
Florida Retirement System, Elected Official 3.00 42.47 45.50
Notes:
(1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/16 - 6/30/17.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/17 - 6/30/18.
As defined by the Plan.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
Pension Liabilities, Pension Expense, Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the Pension Plan. At
September 30, 2017, the District reported an FRS pension liability of $11,477,584
for its proportionate share of the net pension liability. The net pension liability was
measured as of September 30, 2017, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2017.
The District's proportionate share of the net pension liability was based on the
District's 2016-17 fiscal year contributions relative to the total 2016-17 fiscal year
contributions of all participating members. At September 30, 2017, the District's
proportionate share was .038802719 percent, which was a decrease of .002181177
percent from its proportionate share measure as of September 30, 2016.
For the year ended September 30, 2017, the District recognized FRS pension
expense of $1,685,984. In addition, the District reported deferred outflows of
resources and deferred inflows of resources related to the pension from the following
sources:
Description
Differences between expected
and actual experience
Change of assumptions
Net difference between projected and
actual earnings on pension plan investments
Changes in proportion and differences between
District contributions and proportionate share
of contributions
District contributions subsequent to the
measurement date
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,053,366 $ 63,580
3,857,277 -
- 284,443
1,373,996 2,284,052
274,764 -
Total $ 6,559,403 $ 2,632,075
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
The deferred outflows of resources related to the FRS pension, totaling $274,764
resulting from District contributions subsequent to the measurement date, will be
recognized as a reduction on the net pension liability in the fiscal year ended
September 30, 2017. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to the pension will be recognized in pension
expense over the remaining service period of 6.4 years as follows:
Fiscal Years Ending
September 30
Amount
2018
$ 657,965
2019
657,965
2020
657,965
2021
657,966
2022
729,076
Thereafter
291,627
Total
$ 3,652,564
Actuarial Assumptions. The total pension liability in the July 1, 2017, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Real payroll growth 0.65 percent
Salary increases 3.25 percent, average, including inflation
Investment rate of return 7.10 percent, net of pension plan
investment expense, including inflation
Mortality rates were based on the Generational RP -2000 with Projection Scale BB.
The actuarial assumptions used in the July 1, 2017, valuation were based on the
results of an actuarial experience study for the period July 1, 2008 through June 30,
2013.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 45 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
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:
Total 100%
Assumed inflation - Mean
(1) As outlined in the Plan's investment policy
2.6% 1.9%
Discount Rate. The discount rate used to measure the total pension liability
was 7.10 percent. The Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
Compound
Annual
Annual
Target
Arithmetic
(Geometric)
Standard
Asset Class
Allocation (1)
Return
Return
Deviation
Cash
1 %
3.4%
3.0%
1.8%
Fixed income
18%
4.5%
4.4%
4.2%
Global equity
53%
7.8%
6.6%
17.0%
Real estate (property)
10%
6.6%
5.9%
12.8%
Private equity
6%
11.5%
7.8%
30.0%
Strategic investments
12%
6.1%
5.6%
9.7%
Total 100%
Assumed inflation - Mean
(1) As outlined in the Plan's investment policy
2.6% 1.9%
Discount Rate. The discount rate used to measure the total pension liability
was 7.10 percent. The Plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current active and inactive employees.
Therefore, the discount rate for calculating the total pension liability is equal to the
long-term expected rate of return.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 46 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan, continued
Sensitivity of the District's Proportionate Share of the Net Pension Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net pension liability calculated using the discount rate of
7.10 percent which was reduced from 7.60%, as well as what the District's
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1 -percentage -point lower (6.10 percent) or 1 -percentage -point
higher (8.10 percent) than the current rate:
1 % Current 1 %
Decrease Discount Rate Increase
(6.10%) (7.10%) (8.10%)
District's proportionate share of
the net pension liability $ 20,773,734 $ 11,477,584 $ 3,759,650
Pension Plan Fiduciary Net Position. Detailed information about the pension plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Systems Comprehensive Annual Financial Report (FRS "CAFR")
dated June 30, 2017.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.m_yflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2017, the District reported a
payable of $0 for the outstanding amount of contributions in the pension plan.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 47 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan
Plan Description. The Health Insurance Subsidy Plan ("HIS Plan") is a
cost-sharing multiple -employer defined benefit pension plan established under Section
112.363, Florida Statutes. 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 Division of Retirement within the Florida Department of
Management Services.
Benefits Provided. For the year ended September 30, 2017, eligible
retirees and beneficiaries received a monthly HIS payment equal to the number of
years of creditable service completed at the time of retirement multiplied by $5. The
payments are at least $30 but not more than $150 per month, pursuant to Section
112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree
under a State -administered retirement system must provide proof of health insurance
coverage, which can 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 year ended
September 30, 2017, the contribution rate ranged between 1.66 percent and 1.66
percent of payroll pursuant to Section 112.363, Florida Statutes. The District
contributed 100 percent of its statutorily required contributions for the current and
preceding three years. HIS Plan contributions are deposited in a separate trust fund
from which HIS payments are authorized. HIS Plan benefits are not guaranteed and
are subject to annual legislative appropriation. In the event the legislative appropriation
or available funds fail to provide full subsidy benefits to all participants, benefits may be
reduced or cancelled.
Pension Liabilities, Pension Expense, Deferred Outflows of Resources
and Deferred Inflows of Resources Related to the HIS Plan. At September
30, 2017, the District reported a HIS liability of $2,270,390 for its proportionate
share of the net HIS Plan's net pension liability. The net pension liability was
measured as of September 30, 2017, and the total pension liability was used to
calculate the net pension liability determined by an actuarial valuation as of July
1, 2017. The District's proportionate share of the net HIS liability was based on the
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan, continued
District's 2016-17 fiscal year contributions relative to the total 2016-17 fiscal year
contributions of all participating members. At September 30, 2017, the District's
proportionate share was .021233558 percent, which was a decrease of .000297100
percent from its proportionate share measured as of September 30, 2016.
For the fiscal year ended September 30, 2017, the District recognized HIS expense
of $126,902. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Description
Differences between expected
and actual experience
Change of assumptions
Net difference between projected and actual
earnings on HIS pension plan investments
Changes in proportion and differences between
District HIS contributions and proportionate
share of HIS contributions
District contributions subsequent to the
measurement date
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $ 4,727
319,139 196,323
1,259
448,559 471,561
31,485
Total $ 800,442 $ 672,611
The deferred outflows of resources related to HIS, totaling $31,485, resulting from
District contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the year ended September 30, 2017. Other
amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense over the
remaining service period of 7.2 years as follows:
Fiscal Years Ending
September 30
Amount
2018
$ 15,652
2019
15,652
2020
15,652
2021
15,651
2022
15,337
Thereafter
18,402
Total
$ 96,346
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan, continued
Actuarial Assumptions. The total pension liability in the July 1, 2017, actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 2.60 percent
Real Payroll Growth 0.65 percent
Salary Increases 3.25 percent, average, including inflation
Municipal Bond Rate 3.58 percent
Mortality rates were based on the Generational RP -2000 with Projected Scale BB.
Because the HIS Plan is funded on a pay-as-you-go basis, no experience study has
been completed for the Plan.
Discount Rate. The discount rate used to measure the total HIS liability was
increased from 2.85 % to 3.58%. In general, the discount rate for calculating the total
HIS 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 plan sponsor. The Bond Buyer General
Obligation 20 -Bond Municipal Bond Index was adopted as the applicable municipal
bond index.
Sensitivity of the District's Proportionate Share of the Net HIS Liability
to Changes in the Discount Rate. The following presents the District's
proportionate share of the net HIS liability calculated using the discount rate of
3.58 percent, as well as what the District's proportionate share of the net HIS
liability would be if it were calculated using a discount rate that is 1 -percentage -point
lower (2.58 percent) or 1 -percentage -point higher (4.58 percent) than the current
rate:
1 % Current 1 %
Decrease Discount Rate Increase
(2.58%) (3.58%) (4.58%)
District's proportionate share of
the net HIS liability $ 2,590,816 $ 2,270,390 $ 2,003,493
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan, continued
Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's
fiduciary net position is available in the separately issued FRS Pension Plan and Other
State Administered Comprehensive Annual Financial Report (FRS "CAFR") dated
June 30, 2017.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
Division of Retirement
Bureau of Research and Member Communications
P.O. Box 9000
Tallahassee, FL 32315-9000
850-488-5706 or toll free at 877-377-1737
http://www.dms.myflorida.com/workforce operations/retirement/publications
Payables to the Pension Plan. At September 30, 2017, the District reported a
payable of $0 for the outstanding amount of contributions to the HIS plan.
FRS - Defined Contribution Pension Plan
The SBA administers the defined contribution plan officially titled the FRS Investment
Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial
statements and in the State of Florida Comprehensive Annual Financial Report.
As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect
to participate in the Investment Plan in lieu of the FRS defined benefit plan. District
employees participating in DROP are not eligible to participate in the Investment
Plan. Employer and employee contributions, including amounts contributed to
individual member's accounts, are defined by law, but the ultimate benefit depends in
part on the performance of investment funds. Benefit terms, including contribution
requirements, for the Investment Plan are established and may be amended by the
Florida Legislature. The Investment Plan is funded with the same employer and
employee contribution rates that are based on salary and membership class (Regular
Class, Elected County Officers, etc.) as the FRS defined benefit plan. Contributions
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 51 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS - Defined Contribution Pension Plan, continued
are directed to individual member accounts, and the individual members allocate
contributions and account balances among various approved investment choices.
Costs of administering the plan, including FRS Financial Guidance Program, are
funded through an employer contribution of 0.06 percent of payroll and by forfeited
benefits of plan members. Allocations to the investment member's accounts during
the 2016-17 fiscal year were as follows:
Class
Percent of Gross Salary*
Employee Employer (1) Employer (3)
Florida Retirement System, Regular
3.00
7.52
7.92
Florida Retirement System, Senior Management Service
3.00
21.77
22.71
Florida Retirement System, Special Risk
3.00
22.57
23.27
Deferred Retirement Option Program - Applicable
to Members from All of the Above Classes
0.00
12.99
13.26
Florida Retirement System, Reemployed Retiree
(2)
N/A
N/A
Florida Retirement System, Elected Official
3.00
42.47
45.50
Notes:
(1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/16 - 6/30/17.
(2) Contribution rates are dependent upon retirement class in which reemployed.
(3) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also,
employer rates, other than for DROP participants, include .06 percent for administrative costs for
the Investment Plan. Rates for 7/1/17 - 6/30/18.
As defined by the Plan.
For all membership classes, employees are immediately vested in their own
contributions and are vested after 1 year of service for employer contributions and
investment earnings. If an accumulated benefit obligation for service credit originally
earned under the FRS Pension Plan is transferred to the Investment Plan, the member
must have the years of service required for FRS Pension Plan vesting (including the
service credit represented by the transferred funds) to be vested for these funds and
the earnings on the funds. Nonvested employer contributions are placed in a suspense
account for up to 5 years. If the employee returns to FRS -covered employment
within the 5 -year period, the employee will regain control over their account. If the
employee does not return within the 5 year period, the employee will forfeit the
accumulated account balance. For the fiscal year ended September 30, 2017, the
information for the amount of forfeitures was unavailable from the SBA; however,
management believes that these amounts, if any, would be immaterial to the District.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 52 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
FRS - Defined Contribution Pension Plan, continued
After termination and applying to receive benefits, the member may rollover vested
funds to another qualified plan, structure a periodic payment under the Investment
Plan, receive a lump -sum distribution, leave the funds invested for future distribution,
or any combination of these options. Disability coverage is provided; the member
may either transfer the account balance to the FRS Pension Plan when approved for
disability retirement to receive guaranteed lifetime monthly benefits under the FRS
Pension Plan, or remain in the Investment Plan and rely upon that account balance for
retirement income.
The District's Investment Plan pension expense included within the FRS expense
totaled $128,712 for the year ended September 30, 2017.
Payables to the Investment Plan. At September 30, 2017, the District reported a
payable of $0 for the outstanding amount of contributions to the Plan.
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund
The following brief description of the North Collier Fire Control and Rescue District
Firefighters' Pension Plan (originally known as the North Naples Firefighters' Pension
Plan) (the "Plan") is provided for general information purposes only. The Plan's name
changed effective January 1, 2015 with the District's merger. Participants should
refer to the plan agreement for a more complete description of the Plan. On
July 11, 1996, under the authority of Florida Statute 175 and Laws of Florida,
Chapter 95-338, the District's Board of Commissioners passed Resolutions 96-004
and 96-005, providing for the establishment and funding of a single employer defined
benefit retirement plan and trust for newly hired fire suppression personnel. The
resolutions establish that certified firefighters hired on or after January 1, 1996 are to
become participants in the District's Firefighters' Pension Trust ( FPT) Fund. The
Plan is totally administered, including all investment management, by a third party
administrator and the Plan's appointed Pension Board.
Effective October 1, 2011, employee participants were required to contribute 3%
(similar to FRS) of compensation (an increase from .5% of compensation) per
Resolution 11-031.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Effective January 1, 2015, employees of the Big Corkscrew Island (BCI) Fire
District merged with those of North Naples Fire District. As such, five employees of
BCI joined Plan 2.
During the year ended September 30, 2015, the District adopted Governmental
Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting
for Pensions" (GASB 68). As such, the Plan's beginning net position was restated
and the net pension liability was recorded in the government -wide financial
statements.
During the years ended September 30, 2017, 2016, and 2015 there were employee
contributions in the amount of $416,608, $353,357, and $283,205, respectively, to
the Plan. The employer contributed 100% of its required contributions, as well as
those required contributions of the participating firefighters (0.5% pick-up).
The Plan provides for full-time firefighting personnel to become eligible to participate
in the Plan immediately upon hire. Under District resolution 96-005, the District
elected to pay the 0.5% (1% prior to December 9, 2004) employee required
contribution on behalf of the employee. Effective December 9, 2004, the employee
contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per
resolution 01-01), benefits under the Plan vest after six years of creditable service.
Employees who elect normal retirement at or after age 55 with 6 years of creditable
service, or 25 years of service regardless of age, are entitled to a retirement benefit.
Effective October 1, 2011, required employee contributions increased to 3% of
compensation. Employees may elect early retirement after 6 years of creditable
service with a reduction in benefit not to exceed 3% for each year before normal
retirement. The Plan also includes certain disability and death benefits.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 54 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Contributions - Contributions to the Plan are derived from three sources:
the plan's participants are required to contribute to the plan in the amount of 3% of
their covered wages and pursuant to resolution 11-031 the District has elected to
increase the affected employees' salary by 0.5% (employer pick-up), State funds
(fire [hazard] insurance premium tax per Florida Statute Chapter 175) and employer
(remaining amount necessary to meet actuarial requirement). For the period from
January 1, 1996 through September 30, 1996, no employer contributions were
required. Employer contributions were required beginning October 1, 1996. The
State contributions under Chapter 175 began in June 1997. This revenue is based on
property fire insurance premiums paid within the District and is applied up to an
approved "frozen" limit of $1,746,716. The District (employer) is required to fund
the difference each year between the total contributions from all other sources for the
year and the total cost for the year pursuant to the most recent actuarial valuation of
the Plan. The total cost for any year equals total normal cost plus the additional
amounts sufficient to amortize the unfunded past service liability over a 30 year period
commencing the first year of the Plan's inception.
Pursuant to the actuarial study dated October 1, 2017 for the year ended September
30, 2017, the District's contribution (District only) requirement was 24% of the
actuarially determined covered payroll. Actual District contributions to the Plan for
the years ended September 30, 2017, 2016 and 2015, were $2,927,841,
$1,750,382, and $1,105,545 respectively. The State contributions for the years
ended September 30, 2017 and 2016 were $1,369,167 and $1,411,547,
respectively. Employees contributed (3%) $416,608 to the Plan for the year ended
September 30, 2017. At September 30, 2017, $70,747,813 the Plan's total net
position was restricted for retiree benefits.
Payables to the Pension Plan. At September 30, 2017, the District reported a
payable of $0 for the outstanding amount of contributions payable to the
pension plan.
Pension Benefits - Effective July 1, 2001, employees with 6 or more years of
service are entitled to monthly pension benefits, beginning at the earlier of age 55 with
6 years of credited service or 25 years credited service regardless of age. Benefit is
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 55 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
equal to 3.53% of their average final compensation (AFC) times credited service
prior to October 1, 2013 plus 3% of average final compensation times credited
service on and after October 1, 2013. AFC means the average of the highest five (5)
years within the last ten (10) years of service. Maximum benefit is 100% of AFC.
The plan permits early retirement with 6 years (10 years prior to July 2, 2001) of
credited service. Members hired after December 31, 2014 must have 10 years of
credited service to qualify for early retirement. Employees may elect to receive their
pension benefits in the form of a 10 year certain and life annuity. If employees
terminate before rendering 6 years of credited service, they forfeit the right to receive
the portion of their accumulated plan benefits.
All retirement benefits are annually increased for cost of living at 3%.
Death and Disability Benefits - Upon the death of any vested member,
whether or not still in active employment, a survivor benefit is payable to the
beneficiary starting when the member would have reached retirement age. The
benefit is equal to the vested pension benefit and is payable for 10 years. A spousal
and/or minor benefit is provided for line of duty death equal to a minimum of one
half of the members salary for life (spouse) or age 18 (child).
Employees who become totally disabled with at least 8 years of credited service
receive the greater of the accrued pension benefit or 25% of AFC, if non -service
incurred, or 42% of AFC, if active service incurred. Effective December 9, 2004,
the active service related benefit was increased to 65%.
Supplemental Benefits - Effective December 31, 2004, each service and
disability retiree and their joint pensioners or beneficiaries and vested terminated
members shall receive a supplemental payment to be used as a health insurance
subsidy payment. The amount shall be five dollars ($5) for each full year of credited
service for life. The maximum monthly supplement is one hundred fifty dollars ($150)
and the minimum thirty dollars ($30).
DROP - Effective December 12, 2013, Resolution 13-034 was adopted, which
established a Deferred Retirement Option Plan ("DROP"). An "eligible participant" of
the pension plan, which is defined as an individual currently on full-time work status,
may elect to participate in the DROP on the first day of the month coincident with or
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 56 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
next following either, attainment of age fifty-five (55) and the completion of ten (10)
years of credited service, or the completion of twenty-five (25) years of credited
service, which date shall constitute the "initial date of eligibility". An eligible
participant electing to participate in DROP must complete and execute such forms as
may be required by the District and supplied by the Board of Trustees not less than
thirty (30) days prior to entering the DROP. The forms shall include, but not limited
to, an irrevocable letter of resignation effective no later than the conclusion of the
maximum period of DROP participation. Election into the DROP is irrevocable
provided there shall be no minimum period of participation; however in the event of a
voluntary termination prior to the maximum period, any DROP participant termination
prior to such maximum DROP period shall submit a written notice at least thirty (30)
days prior to such early termination of DROP participation.
An eligible participant may elect to participate in the DROP only once. After
commencement of participation in DROP, a participant shall no longer earn, accrue or
purchase additional service credits towards retirement benefits or later enhancements
to the firefighters' pension plan.
Upon the effective date of an eligible participant's participation in DROP, all
contributions by and on behalf of the participant to the plan shall be discontinued. For
all plan purposes, service and vesting credits of an eligible participant electing DROP
shall be fixed as of the effective date of commencement of DROP participation. Any
services as a firefighter after entry into DROP shall not be used for calculation or
determination of benefits payable by the pension plan. The average final
compensation of a participant, as defined in this plan shall be determined as of the
effective date of commencement of DROP participation and other subsequent
earnings shall not be used for calculation or determination of benefits payable by the
pension plan.
Income Recognition - Interest income is recorded on the accrual basis. Investments
are reported at market value. Short-term investments are reported at cost, which
approximates market value.
Actuarial Present Value of Accumulated Plan Benefits - Accumulated plan
benefits are those future periodic payments, including lump -sum distributions, that
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
are attributable under the Plan's provisions to the service employees have rendered.
Accumulated plan benefits include benefits expected to be paid to (a) retired or
terminated employees or their beneficiaries, (b) beneficiaries of employees who have
died, and (c) present employees or their beneficiaries. Benefits under the Plan are
based on employees' age at entry to the Plan and are based upon the current starting
salary for firefighters at entry level. Benefits payable under all circumstances,
retirement, death, disability and termination of employment, are included, to the
extent they are deemed attributable to employee service rendered to the valuation
date.
The actuarial present value of accumulated plan benefits is determined by an actuary
and is the amount that results from applying actuarial assumptions to adjust the
accumulated plan benefits to reflect the time value of money (through discounts for
interest) and the probability of payment (by means of decrements such as for death,
disability, withdrawal, or retirement) between the valuation date and the expected
date of payment. The significant actuarial assumptions used in the valuations as of
October 1, 2016 were (a) life expectancy of participants - RP 2000 (combined
healthy, sex distinct) Mortality Table was used, (b) retirement age assumptions (the
assumed average retirement age was 55), and (c) annual investment return of 7.5%
(net of fees). The actuarial valuation reflected assumed average rates of return of
7.5% (net of fees). The foregoing actuarial assumptions are based on the presumption
that the Plan will continue. If the Plan terminated, different actuarial assumptions and
other factors might be applicable in determining the actuarial present value of
accumulated plan benefits.
Payment of Benefits - Benefit payments to participants are recorded upon
distribution. The District contributed 100% of the required contributions. A summary
of certain Plan details and trend information is included below.
A copy of the Plan and Plan audit as of and for September 30, 2017 can be
obtained by writing to the District at 1885 Veterans Park Drive, Naples, Florida
34109-0492, or by calling (239) 597-3222.
The following is a summary of the Single -Employer Defined Benefit Pension Plan
(Florida Statutes Chapter #175), including funding policies, contribution methods,
benefit provisions and trend information:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 58 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Year established and governing authority
Governing body
Determination of contribution requirements:
Firefighters' Pension
Trust Fund - Plan 2
District Resolution 96- 004 (July 11, 1996)
Board of Trustees of Plan
Actuarially determined
Employer (District) Amount required in excess of Member and
applicable State contributions needed in
order to pay current costs and amortize any
unfunded past service cost over 30 years
Plan members 3.0% of covered payroll
Funding of administrative costs:
Period required to vest
Annual salary increase
Post retirement benefit increase
Eligibility for distribution
(Normal retirement)
Provisions for:
Disability benefits
Death benefits
Early retirement
Assumed inflation
Actuarial assumption/method changes since
prior valuation:
Actuarial Cost Method
Net -of -Fees Investment Return
Annual Salary Increase
Employer
6 years
Graduated Scale based on Credited Service (see below)
Cost of living increase of 3% each year
Earlier of 55 with 6 years of credited service or
25 years credited service regardless of age
Yes
Yes
Yes
2.5%
Entry Age Normal. Prior valuations utilized Frozen
Entry Age method
Reduced from 8.00% to 7.50%
flat 6% per year to graduated scale (9% per year
for first 10 years & 3% per year for 10+ years)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Net Pension Liability of the Fund - The components of the net pension liability of
the District at September 30, 2017 were as follows:
The total pension liability was determined by an actuarial valuation as of September 30,
2017 using certain actuarial assumptions, the most significant of which were 7.5 percent
for the investment rate of return (net of fees), 3.0-9.0 percent for projected salary increases
and 2.5 percent for inflation.
Mortality rates were based on the RP -2000 Combined Healthy Mortality Table, Sex
Distinct. Disabled lives are set forward five (5) years.
The Plan's policy with regards to the allocation of invested assets is established and may be
amended by the Pension Board. Plan assets are managed on a total return basis with a
long-term objective of achieving and maintaining a fully funded status for the benefits
provided through the Plan. The investment policy was last amended in February 2014.
The following table summarizes the Board's adopted allocation policy and the long-term
expected real rates of return for each major asset class:
Amount
Total pension liability
$ 73,738,012
Plan fiduciary net position
(70,747,813)
District's net pension liability
$ 2,990,199
Plan fiduciary net position as a percentage of the
Allocation
total pension liability
95.94%
The total pension liability was determined by an actuarial valuation as of September 30,
2017 using certain actuarial assumptions, the most significant of which were 7.5 percent
for the investment rate of return (net of fees), 3.0-9.0 percent for projected salary increases
and 2.5 percent for inflation.
Mortality rates were based on the RP -2000 Combined Healthy Mortality Table, Sex
Distinct. Disabled lives are set forward five (5) years.
The Plan's policy with regards to the allocation of invested assets is established and may be
amended by the Pension Board. Plan assets are managed on a total return basis with a
long-term objective of achieving and maintaining a fully funded status for the benefits
provided through the Plan. The investment policy was last amended in February 2014.
The following table summarizes the Board's adopted allocation policy and the long-term
expected real rates of return for each major asset class:
Long -Term
Target
Actual
Expected Real
Asset Class
Allocation
Allocation
Rate of Return*
Domestic equities
35-55%
42%
7.5%
International equities
10-25%
17%
8.5%
Fixed income
15-40%
22%
2.5%
TIPS
0-10%
0%
not available
International fixed income
0-10%
7%
3.5%
Global Tactical Asset Allocation
0-15%
0%
not available
Real estate
0-15%
9%
4.5%
Cash and cash equivalents
minimal
3%
not available
* annual arithmetic return
100%
100%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 60 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
The long-term expected rate of return on Plan assets was determined using a building-block
method in which best -estimate ranges of expected future real rates of return (expected
returns, net of Plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation.
Discount Rate. The discount rate used to measure the total pension liability was 7.5
percent. The projection of cash flows used to determine the discount rate assumed that
plan participant contributions will be made at the current contribution rate and that District
contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the participant rate. Based on those assumptions, the Plan's fiduciary
net position was projected to be available to make all projected future benefit payments of
current plan participants. Therefore, the long-term expected rate of return on Plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
Rate of Return Sensitivity. The sensitivity of the net pension liability to changes in the
discount rate was measured as follows. The net pension liability of the District was
calculated using the discount rate of 7.5 percent. It was also calculated using a discount
rate that was 1 -percentage -point lower (6.5 percent) and 1 -percentage -point higher
(8.5 percent) than the current rate:
1 % Current 1 %
Decrease Discount Rate Increase
6.5% 7.5% 8.5%
Net pension liability (asset) $ 15,082,882 $ 2,990,199 $ (6,774,496)
Deferred Inflows/Outflows of Resources Related to Pensions
On September 30, 2017, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 61 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Differences between expected and
actual experience
Change of assumptions
Net difference between projected and actual
earnings on plan investments
Contributions subsequent to the measurement date
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,105,070 $ 967,534
1,690,390 2,168,878
2,539,076 -
4,302,560 -
$ 9,637,096 $ 3,136,412
The deferred outflows of resources related to the pension, resulting from District
contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the fiscal year ended September 30, 2017.
Other amounts reported as deferred outflows of resources and deferred inflows
of resources related to the pension will be recognized in pension expense as follows:
Years Ending
September 30
2018
2019
2020
2021
2022
Thereafter
Total
Amount
$ 700,290
700,291
804,506
(60,518)
(98,626)
152,181
$ 2,198,124
Memberships of the Plan consisted of the following at October 1, 2017:
Firefighters' Pension
Trust Fund - Plan 2
Active plan members 161
Inactive plan members or beneficiaries currently receiving benefits 12
Inactive plan members entitled to but not yet receiving benefits 12
Total 185
Number of participating employers 1
Number of participating state agencies 1
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firelighters' Pension Trust Fund,
continued
The following is a schedule of changes in net pension liability for the fiscal year ended
September 30, 2017:
Balances at September 30, 2016
Changes for the fiscal year:
Service cost
Interest
Differences between expected and
actual experience
Changes of assumptions
Changein excess state money
Contributions - Employer
Contributions - State
Contributions - Employee
Contributions - Buy Back
Net investment income
Benefit payments, including refunds
of employee contributions
Administrative expense
Net changes
Balances at September 30, 2017
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability (Asset)
$ 61,707,055 $ 58,512,948 $ 3,194,107
3,829,067 - 3,829,067
4,900,966 - 4,900,966
3,651,680 - 3,651,680
- 2,933,393
(2,933,393)
- 1,369,167
(1,369,167)
- 413,159
(413,159)
29,067 29,067
-
- 7,965,899
(7,965,899)
(379,823) (379,823) -
- (95,997) 95,997
12,030,957 12,234,865 (203,908)
$ 73,738,012 $ 70,747,813 $ 2,990,199
Annual Pension Cost, Net Pension Obligation and Reserves
Current year annual pension costs for the Firefighters' Pension Trust Fund are shown
in the trend information provided. The Firefighters' Pension Trust Fund had a net
unfunded actuarial accrued liability at October 1, 2017 of $2,990,199.
The Plan assets are legally reserved for the payment of the respective plan member
benefits within the Plan. There are no assets legally restricted for plan benefits other
than these assets within the Plan. The Firefighters' Pension Trust Fund held certain
investments at year end.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Trend Information
Firefighters' Pension Trust Fund
Total (1)
Required Actual Contributions Net
Fiscal
Year
Annual
Pension
Contribution
District
Required
Contribution
State
Required
Contribution
State (2)
Frozen
Contribution
2017
$ 4,302,560
$ 2,933,393
$
1,369,167
$1,746,716
2016
$ 3,146,984
$ 1,735,437
$
1,411,547
$1,746,716
2015
$ 2,594,733
$ 1,107,133
$
1,487,600
$1,746,716
2014
$ 2,896,024
$ 1,518,926
$
1,377,098
$1,746,716
2013
$ 3,386,733
$ 2,127,828
$
1,314,064
$1,746,716
2012
$ 3,283,811
$ 2,166,246
$
1,214,214
$1,746,716
2011
$ 3,473,598
$ 2,333,799
$
1,139,799
$1,746,716
2010
$ 3,190,997
$ 2,170,443
$
1,020,554
$1,746,716
2009
$ 2,796,158
$ 1,756,228
$
1,039,931
$1,746,716
2008
$ 2,211,933
$ 1,009,715
$
1,485,798
$1,485,798
(1) The District considers its annual pension cost to be its actuarially determined required
annual pension contribution including the employer and state contribution. Fy 2017
required contribution reduced by $0 excess State money reserve.
Pension Trust Required Supplementary Information
Schedule of Funding
Progress Firefighters' Pension Plan:
Pension
Actual
Percentage Obligation
Contribution
Contributed (NPO)
$
4,302,560
100% -
$
3,146,984
100% -
$
2,594,733
100% -
$
2,896,024
100% -
$
3,441,892
102% -
$
3,380,454
103% -
$
3,626,125
104% -
$
3,200,901
100% -
$
3,079,738
110% -
$
2,495,513
113% -
(1) The District considers its annual pension cost to be its actuarially determined required
annual pension contribution including the employer and state contribution. Fy 2017
required contribution reduced by $0 excess State money reserve.
Pension Trust Required Supplementary Information
Schedule of Funding
Progress Firefighters' Pension Plan:
Unfunded
Actuarial
Actuarial
Actuarial
UAAL as
Value of
Accrued
Accrued
Annual
a % of
Actuarial
Assets **
Liability (AAL)
Liability
Funded
Covered
Covered
Valuation
(AVA)
-Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
(b-a)/c
10/01/17
$70,747,813
$73,738,012
$ 2,990,199
95.9%
$13,771,976
21.7%
10/01/16
$58,512,948
$61,707,055
$ 3,194, 107
94.8%
$11,890,295
26.9%
10/01/15
$51,534,195
$51,541,750
$ 7,555
100.0%
$
9,671,942
0.1%
10/01/14
$49,189,571
$47,467,581
$(1,721,990)
103.6%
$
8,770,495
-19.6%
10/01/13
$42,143,137
$41,366,768
$ (776,369)
101.9%
$
9,092,235
-8.5%
10/01/12
$33,983,491
$33,924,855
$ (58,636)
100.2%
$
8,254,150
-0.7%
10/01/11
$26,196,164
$26,153,965
$ (42,199)
100.2%
$
8,291,830
-0.5%
10/01/10
$22,990,534
$23,284,830
$ 294,296
98.7%
$
7,737,940
3.8%
10/01/09
$17,833,111
$18,108,267
$ 275,156
98.5%
$
7,522,834
3.7%
10/01/08
$16,719,426
$16,890,153
$ 170,727
99.0%
$
7,082,194
2.4%
** reflected by actuary as Plan Fiduciary Net Position
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 64 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 - Plan Description and Provisions - Firefighters' Pension Trust Fund,
continued
Valuation date
Actuarial cost method
Amortization method
Mortality table
Remaining amortization period
Actuarial asset valuation method
Actuarial assumptions:
Investment rate
Projected salary increase
Inflation
Post retirement cost of living
adjustment
Changes of Assumptions
No changes in assumptions.
Firefighters' Pension
Trust Fund
10/01/15
Entry Age Normal
Level dollar, closed
RP2000 Combined Healthy
20 years (as of 1011115)
5 Year Smoothed Market
7.5% (net of fees)
Graduated based on Service
(9% per year for first 10 years &
(3% per year for 10 or more years)
2.5%
3%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 3 - Plan Description and Provisions - 401(a)
The Board of Fire Commissioners established the 401(a) Plan for the general
employees and elected officials who are ineligible to participate in the Florida
Retirement System. The Plan was effective on January 1, 2013. At September 30,
2017, the Plan had two (2) active participants.
The Plan allows for employer contributions. Amounts contributed by the employer
correspond to the percentage of contributions by class, established for participants
of the Florida Retirement System. Employee contributions are prohibited.
Employer contributions are 100% vested after completion of one year of service. A
year of service is based on an employee completing at least 1,000 hours of service
during a plan year.
Total District contributions to the Plan for the year ended September 30, 2017, 2016
and 2015 were $4,076, $1,103 and $3,639, respectively.
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB)
The District formally established two (2) OPEB Plans to provide its retirees the
opportunity to obtain insurance (health and life) benefits. The year ended September
30, 2010, was the District's transition year. As such, the District implemented GASB
No. 45 on a prospective basis. All retired full-time employees are eligible for OPEB
benefits if actively employed by the District immediately before retirement. As such,
active employees with at least twenty five (25) years of service as of September 30,
2010 were allowed to elect to remain in the Defined Benefit Plan or to enter the Post
Employment Health Plan (PEHP), a defined contribution plan. The defined benefit
plan also provides a $5,000 life insurance benefit. All retirees and Early Retirement
Incentive Program (ERIP) participants, who were eligible, remained in the Defined
Benefit Plan. All other active employees at that time, September 30, 2010, as well as
future employees entered the PERP.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
The benefits are provided both with and without contractual or labor agreements.
The benefits may require contribution from the retirees, depending on certain
specified criteria and, in particular, length of creditable employment. The District
finances the benefits on a pay-as-you-go basis and recognizes expenditures at the
time the premiums are due for both Plans.
Effective January 1, 2015, all active employees of the merged District are covered
with the same post retirement health.
Effective May 1, 2017 the District offered a post -employment health insurance
supplementation for eligible retirees who have completed fifteen (15) years of service
including three (3) years as a Chief Officer. Under this plan, the District shall
contribute 100% toward the cost of the retiree's participation in the District's health
insurance program for the retiree and qualifying spouse/dependent until the employee
reaches the age of 65 or is eligible for Medicare, whichever occurs first. This benefit
is provided in lieu of contributions to the PEHP.
Defined Benefit Plan
Specifically, the Defined Benefit Plan provides that the District will pay a portion of
medical and dental premiums for retirees depending on their years of credited service
starting with the completion of fifteen (15) years of credited service. As such, the
District pays 50% of the employee's premium and 25% of the spouse's premium at
completion of 15 years of service progressing to 100% of the employee's premium
and 100% of the spouse's premium upon completion of 25 years of service for
certain employees based on final rank at date of retirement.. The District also pays
the premium associated with a $5,000 life insurance benefit.
During fiscal years 2009 and 2010, the District offered two (2) separate Early
Retirement Incentive Programs (ERIP) to a number of active employees. A portion
of the programs includes full payment of premiums associated with medical, dental,
vision and life insurance coverage, including dependent coverage for a period of 3
years. After the 3 year period ends, the ERIP participants receive the Defined
Benefit Plan benefits they had been eligible for at termination. During the year ended
September 30, 2014, the District paid the final amounts due on the ERIP Plans.
Note that the projected premiums for the dental and life benefits are assumed to
cover the entire cost of the program.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Post Employment Health Plan (PERP)
The PEHP is a defined contribution plan administered by the District.
All employees who did not elect to remain in the Defined Benefit Plan, and all
future active employees are participants in the PEHP.
Originally participants in the PEHP had $7,000 deposited on their behalf into a trust
account on the 20th anniversary of their date of hire and on each subsequent
anniversary. Additionally, those participants having over 20 years of credited service
at their date of retirement also received a $30,000 deposit on their behalf at date of
separation. Effective October 1, 2012, the Plan was changed to limit District total
contributions to $50,000 per employee.
Effective October 1, 2015, participants in the PEHP will have $2,500 deposited into
a trust account following the 5th anniversary of their date of hire and on each
subsequent year. Additionally, those participants having over 20 years of credited
service at their date of retirement will receive a maximum contribution ranging from
$37,000 to $50,000 depending on length of service.
The PEHP is designed to offer similar benefits to those offered under the Defined
Benefit Plan.
The District, as part of the PEHP, entered a group variable annuity contract. As
such, the PEHP Plan's asset custodian and third party administrator is the insurance
company through which the annuity is contracted.
General - Funding Policy
The District paid $226,803 for retiree's and ERIP participants' health care premiums
as part of the Defined Benefit Plan on a pay-as-you-go basis for the year ended
September 30, 2017.
The District also contributed $493,000 to the PEHP Plan for the year ended
September 30, 2017.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 68 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Post Employment Health Plan (PEHP), continued
General - Funding Policy, Continued
No separate trust has been established for either Plan. No separate financial
statement is issued for either OPEB Plan. All required disclosures are presented
herein. The District obtained an actuarial valuation for its OPEB Plans to measure the
current year's subsidies and project these subsidies into the future, making an
allocation of that cost to different years. The following schedule of funding progress
presents multi-year trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
Schedule of Funding Progress - Defined Benefit Plan
Expected
Percentage of
Year
Unfunded
Cash
Annual OPEB
Net OPEB
Actuarial
(2)
Actuarial
Payment
Cost
UAAL as a
(1)
Value of
Actuarial
Accrued
34.4%
Annual
Percentage of
Actuarial
Assets
Accrued
Liability
Funded
Covered
Covered
Valuation
(AVA)
Liability (AAL)
(UAAL)
Ratio
Payroll
Payroll
Date *
(a)
(b)
(b -a)
(a/b)
(c)
(b-a)/c
10/01/16
$ -
$ 9,200,152
$ 9,200,152
0.0%
$ 17,388,402
52.9%
01/01/15
$ -
$ 10,342,305
$10,342,305
0.0%
$ 13,652,782
75.8%
10/01/13
$ -
$ 3,477,741
$ 3,477,741
0.0%
$ 328,225
1059.6%
10/01/12
$ -
$ 3,343,982
$ 3,343,982
0.0%
$ 1,057,211
316.3%
10/01/11
$ -
$ 6,882,021
$ 6,882,021
0.0%
$ 1,057,211
651.0%
(1) - Initial actuarial valuation dated 10/1/09 (transition year)
(2) - The AAL reduction in 2012 was in part due to a change in certain actuarial assumptions but
substantially due to consideration given to the fact the District is funding the PEHP.
Schedule of Contributions from Employer - Three Year Trend - Defined Benefit Plan
Note: Actuarial projection for the PEHP is N/A
Expected
Percentage of
Year
Annual
Cash
Annual OPEB
Net OPEB
Ended
OPEB Cost
Payment
Cost
Obligation
09/30/17
$1,132,251
$
389,014
34.4%
$ 3,755,838
09/30/16
$1,237,351
$
441,734
35.7%
$ 3,012,601
09/30/15
$1,020,150
$
358,162
35.1%
$ 2,217,063
09/30/14
$ 508,598
$
78,065
15.3%
$ 1,555,292
09/30/13
$ 503,266
$
78,335
15.6%
$ 1,208,932
Note: Actuarial projection for the PEHP is N/A
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Annual OPEB Cost and Net OPEB Obligation
The annual OPEB cost is the amount that was expensed in the current year. Since
the District's Defined Benefit Plan is unfunded, the offset to that expense comes from
subsidies paid on behalf of the current retirees and their dependents for the current
year. This offset is called the expected cash payment. The cumulative difference
between the annual OPEB cost for the year and the expected cash payment is called
the net OPEB obligation (NOO). The net OPEB obligation for the North Naples
Service Delivery Area and Big Corkscrew Island Service Delivery Area as of
September 30, 2017 is as follows:
Amount
Net OPEB obligation - NN $ 3,755,838
Net OPEB obligation - BCI -
$ 3,755,838
The Net OPEB obligation is reflected as a liability in the Statement of Net Position.
The following table shows the components of the District's annual OPEB cost for the
year and the net OPEB obligation.
Year ended September 30, 2017
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and
healthcare cost trend. Amounts determined regarding the funding status of a plan and
the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made
about the future.
Defined Benefit
Plan
PEHP
Annual required contribution (ARC)
$ 1,185,965
$ 493,000
Adjustment to ARC
(174,218)
-
Plus interest on NOO
120,504
-
Annual OPEB cost
1,132,251
493,000
Annual Net contribution made
(389,014)
(493,000)
Expected cash payment
389,014
(493,000)
Yearly change in OPEB obligation
743,237
Net OPEB obligation - beginning of year
3,012,601
Net OPEB obligation - end of year
$ 3,755,838
$ -
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and
healthcare cost trend. Amounts determined regarding the funding status of a plan and
the annual required contributions of the employer are subject to continual revision as
actual results are compared with past expectations and new estimates are made
about the future.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE H - POST -EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive
plans (the plans as understood by the employer and plan members) and include the
types of benefits provided at the time of the valuation and the historical pattern of
sharing of benefit costs between the employer and plan members. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial valuation
of assets, consistent with the long-term perspective of the calculations.
In the October 1, 2016 actuarial valuation, the Projected Unit Credit Unit cost
method with linear pro -ration to assumed benefit commencement was used. The
actuarial assumptions included a 4.0 percent investment rate of return and an inflation
assumption of 3.0 percent with an annual salary scale of 6.0 percent. Since there are
no invested plan assets held in trust to finance the Defined Benefit Plan - OPEB
obligations, the investment return discount rate is the long-term expectation of
investment return on assets held in District funds pursuant to its investment policy. The
assumptions also included an annual healthcare cost trend based on a graded
schedule beginning with 8.75 percent annually down to an ultimate rate of 4.0 percent
in fiscal 2073. The unfunded actuarial accrued liability is being amortized over a
closed period of 30 years as a level dollar amount. The funding method is the
projected unit credit method as noted above.
NOTE I - RISK MANAGEMENT
During the year ended September 30, 2017, the District provided health benefits as
follows:
The District continued the use of a high deductible health plan offered to employees
and retirees of the District. The District does not offer vision coverage to the
employees of the District. The District offers a HSA plan for its employees. The
District contributes $5,000 for those eligible participants who have met the family
deductible and $3,000 for those eligible participants who have to meet the individual
deductible to the HSA plan annually.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE I - RISK MANAGEMENT, CONTINUED
Participants may also elect to contribute to the respective plan on a pre-tax basis.
HSA amounts that are not utilized by the year end are carried over and are the
property of the participant per IRS regulation.
The District's HSA contributions for the year ended September 30, 2017 were
$1,218,515.
The District incurred $4,313,302 in health related claims, third party administration
costs, premiums and reinsurance premiums including HSA contributions (noted
above) and workers compensation insurance during the year ended September 30,
2017, for the self-insurance and fully -funded insurance programs.
It is the policy of the District to purchase third party commercial insurance for other
remaining forms of potential risks to which it is exposed. The District's risk
management activities are reported in the General Fund. No accrual has been
recorded for claims and incidents not reported to the insurer. The District paid
$446,282 for building, auto and other liability insurances for the year ended
September 30, 2017. The District had no significant reductions in insurance
coverage from the prior year. Reported claims have not exceeded the insurance
coverage for the years ended September 30, 2011 through September 30, 2017.
NOTE J - PROPERTY TAXES
Property taxes are levied after formal adoption of the District's budget and become
due and payable on November 1 of each year and are delinquent on April 1 of the
following year. Discounts on property taxes are allowed for payments made prior to
the April 1 delinquent date. Tax certificates are sold to the public for the full amount
of any unpaid taxes and must be sold not later than June 1 of each year. The billing,
collection, and related record keeping of all property taxes is performed for the
District by the Collier County Tax Collector. No accrual for the property tax levy
becoming due in November 2017 is included in the accompanying basic financial
statements, since such taxes are collected to finance expenditures of the subsequent
period.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE J - PROPERTY TAXES, CONTINUED
Procedures for collecting delinquent taxes, including applicable tax certificate sales
and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is
approximately two years after taxes become delinquent and occurs only upon request
of a holder of a delinquent tax certificate. As of September 30, 2017, $201,154 was
recorded in the General Fund and was due from the Collier County Tax Collector to
the District for ad valorem taxes and excess fees, and interest.
Important dates in the property tax cycle are as follows:
Assessment roll certified
Millage resolution approved
Taxes due and payable (Levy date)
Property taxes payable - maximum
discount (4 percent)
Beginning of fiscal year for which
taxes have been levied
Due date
Taxes become delinquent (lien date)
Tax certificates sold by the Collier
County Tax Collector
July 1
No later than 93 days following
certification of assessment roll.
November/with various discount
provisions through March 31.
30 days after levy date
October 1
March 31
April 1
Prior to June 1
For the year ended September 30, 2017, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of $.95 per $1,000 (.95 mills) of the 2016
net taxable value of real property located within the North Naples Service Delivery
Area.
For the year ended September 30, 2017, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of $3.45 per $1,000 (3.45 mills) of the 2016
net taxable value of real property located within the Big Corkscrew Island Service
Delivery Area.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE K - IMPACT FEE FUND ACTIVITY
During the year ended September 30, 2017, the Impact Fee Fund had the following
activity:
Unearned revenue, October 1, 2016
Impact fee receipts
Due from other Governments
Interest and other income
Operating fees - collection fees
Loan interest
Principal reduction
Capital outlay
Transfers in (out)
Unearned revenue, September 30, 2017
NOTE L - FUND BALANCE/NET POSITION ALLOCATIONS
1,162,373
55,854
19,442
(17,460)
(15,141)
(57,500)
(125,498)
$ 2,264,743
Fund Balance/Net Position were allocated for the following purposes at September
30, 2017:
NN BCI Total
Nonspendable - General Fund Amount Amount Amount
Nonspendable fund balance - General Fund prepaid expenses $ 1,175,978 $ - $ 1,175,978
NN BCT Total
Assigned fund balance - General Fund Amount Amount Amount
General Fund - Expenses - Oct - Dec $ 5,827,316 $ 761,352 $ 6,588,668
General Fund - Minimum operating reserve per policy 1,065,378 89,960 1,155,338
Total General Fund $ 6,892,694 $ 851,312 $ 7,744,006
NN BCI Total
Unassigned - General Fund Amount Amount Amount
General Fund $ - $ - $ -
Total
Restricted Fund Balance/Net Position - Inspection Fee Fund Amount
Inspection Fee Fund $ 20,055
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE M - LEASED VEHICLES
On October 13, 2016, the District leased seventeen (17) vehicles under a forty eight
(48) month operating lease agreement with a monthly payment of $8,514. The
minimum annual lease payments are as follows:
Years Ending
September 30
Amount
2018 $
102,216
2019
102,216
2020
102,216
2021
42,590
$ 349,238
Lease expense for the year ended September 30, 2017 was $54,515.
NOTE N - COMMITMENTS AND CONTINGENCIES
The District is involved from time to time in certain routine litigation, the substance
of which either as liabilities or recoveries, would not materially affect the financial
position of the District. Although the final outcome of the lawsuits, assertions, and
claims or the exact amount of costs and/or potential recovery is not presently
determinable, in the opinion of the District's legal counsel, the resolution of these
matters will not have a materially adverse affect on the financial condition of the
District. As a general policy, the District plans to vigorously contest any such
matters.
In April 2017, the Board approved a capital lease in the amount of $888,147 for the
purchase of a vehicle not yet received at September 30, 2017. The vehicle nor the
lease payable is recorded at September 20, 2017 as the vehicle is subject to final
inspection and acceptance upon delivery. The lease requires five (5) annual
payments of approximately $193,000 including interest at 2.74% beginning on May
1, 2018.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 107
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2017
NOTE O - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS)
During the year ended September 30, 2016, the District's unrestricted net position
(net assets) balance was a deficit of $(4,523,592), due substantially to recording
the current year actuarially determined net pension liability of $16,051,882. The
District's total available fund balance at September 30, 2016 remains approximately
equal to four (4) months of actual expenditures. However, the Board had assigned
100% of the available fund balance of $12,963,754 for specific purposes.
During the year ended September 30, 2017, the District's unrestricted net position
(net assets) balance was a deficit of $(3,046,464), due substantially to recording the
current year actuarially determined net pension liability of $16,738,173. The
District's total available fund balance at September 30, 2017 remains approximately
equal to four (4) months of actual expenditures. However, the Board assigned
100% of the available fund balance of $7,744,006 to fund operations for the first
quarter of the subsequent fiscal year.
COMBINING FINANCIAL STATEMENTS
BY SERVICE DELIVERY AREA
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 107
COMBINING BALANCE SHEET - GENERAL FUND - BY SERVICE
DELIVERY AREA
September 30, 2017
North Naples Big Corkscrew Total
Service Island Service General
Delivery Area Delivery Area Eliminations Fund
ASSETS
Cash and cash equivalents $ 6,682,965 $ 1,916,113 $ - $ 8,599,078
Restricted cash and cash equivalents - - - -
Investments - - -
Due from other governments 171,744 107,464 279,208
Due from other funds 1,591,978 - (1,172,265) 419,713
Other receivables 396,317 396,317
Prepaid expenses 1,175,978 1,175,978
TOTAL ASSETS $ 10,018,982 $ 2,023,577 $ (1,172,265) $ 10,870,294
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and accrued expenses $ 1,417,821 $ - $ - $ 1,417,821
Retainage payable - -
Due to other funds 524,989 1,172,265 (1,172,265) 524,989
Contract deposits 7,500 - - 7,500
Unearned revenue - - -
TOTAL LIABILITIES
1,950,310
1,172,265 (1,172,265)
1,950,310
FUND BALANCE
Nonspendable
1,175,978
- -
1,175,978
Restricted
-
- -
-
Assigned
6,892,694
851,312 -
7,744,006
Unassigned
1,567
(1,567)
-
TOTAL FUND BALANCE
8,070,239
849,745 -
8,919,984
TOTAL LIABILITIES AND
FUND BALANCE $ 10,020,549 $ 2,022,010 $ (1,172,265) $ 10,870,294
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - GENERAL FUND -
BY SERVICE DELIVERY AREA
Year Ended September 30, 2017
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES (3,380,686) (981,920) (4,362,606)
FUND BALANCE - Beginning 11,450,925 1,831,665 13,282,590
FUND BALANCE - Ending $ 8,070,239 $ 849,745 $ 8,919,984
The accompanying notes are an integral part of this statement.
Page 77 of 107
General Fund
North Naples
Big Corkscrew
Total
Service
Island Service
General
Delivery Area
Delivery Area
Fund
REVENUES
Ad Valorem taxes $
26,309,816 $
4,429,759 $
30,739,575
Intergovernmental revenue:
State firefighter supplement
136,156
-
136,156
Federal grants
537,118
474,762
1,011,880
Charges for services
529,173
-
529,173
Miscellaneous:
Interest
56,083
(19)
56,064
Other
483,869
20,736
504,605
TOTAL REVENUES
28,052,215
4,925,238
32,977,453
EXPENDITURES
Current
Public safety
Personnel services
26,510,620
4,681,946
31,192,566
Operating expenditures
4,240,098
691,380
4,931,478
Capital outlay
2,982,201
488,257
3,470,458
Debt service:
Principal reduction
221,555
36,187
257,742
Interest and fiscal charges
57,480
9,388
66,868
Reserves
-
-
-
TOTAL EXPENDITURES
34,011,954
5,907,158
39,919,112
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
(5,959,739)
(981,920)
(6,941,659)
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease
2,546,268
-
2,546,268
Proceeds from disposition of capital assets
32,785
-
32,785
Transfer in
-
-
-
Transfer out
-
-
-
TOTAL OTHER FINANCING SOURCES
AND (USES)
2,579,053
-
2,579,053
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES (3,380,686) (981,920) (4,362,606)
FUND BALANCE - Beginning 11,450,925 1,831,665 13,282,590
FUND BALANCE - Ending $ 8,070,239 $ 849,745 $ 8,919,984
The accompanying notes are an integral part of this statement.
Page 77 of 107
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT - NN
Year Ended September 30, 2017
REVENUES
Ad Valorem taxes
Intergovernmental revenue:
State firefighter supplement
Federal grants
Charges for services
Miscellaneous:
General Fund
Page 78 of 107
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
$ 25,751,679 $ 26,305,591 $ 26,309,816 $ 4,225
48,834 48,834 136,156 87,322
537,500 474,762 537,118 62,356
800,100 611,220 529,173 (82,047)
Interest 69,500
69,500
56,083
(13,417)
Other 479,310
498,743
483,869
(14,874)
Subtotal - revenues 27,686,923
28,008,650
28,052,215
43,565
Cash brought forward 13,387,285
11,450,923
-
(11,450,923)
TOTALREVENUES 41,074,208
39,459,573
28,052,215
(11,407,358)
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
23,740,443 26,706,470 26,510,620 195,850
4,083,143 4,193,652 4,240,098 (46,446)
1,355,232 962,195 2,982,201 (2,020,006)
Principal reduction 269,839 235,456 221,555 13,901
Interest and fiscal charges 64,322 64,322 57,480 6,842
Reserves 11,561,229 7,297,478 - 7,297,478
TOTAL EXPENDITURES 41,074,208 39,459,573 34,011,954 5,447,619
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease
Proceeds from disposition of capital assets
Transfer in
Transfer out
TOTAL OTHER FINANCING SOURCES
AND (USES)
(5,959,739) (5,959,739)
- 2,546,268 2,546,268
- - 32,785 32,785
- - 2,579,053 2,579,053
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $ - $ - (3,380,686) $ (3,380,686)
FUND BALANCE - Beginning 11,450,925
FUND BALANCE - Ending $ 8,070,239
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT - NN
Year Ended September 30, 2017
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $
25,751,679 $
26,305,591 $
26,309,816 $
4,225
Intergovernmental revenue:
State firefighter supplement
48,834
48,834
136,156
87,322
Federal grants
537,500
474,762
537,118
62,356
Charges for services
800,100
611,220
529,173
(82,047)
Miscellaneous:
Interest
69,500
69,500
56,083
(13,417)
Other
479,310
498,743
483,869
(14,874)
Subtotal - revenues
27,686,923
28,008,650
28,052,215
43,565
Cash brought forward
13,387,285
11,450,923
-
(11,450,923)
TOTALREVENUES
41,074,208
39.459,573
28,052,215
(11,407,358)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters & Admin.
14,706,133
14,706.133
14,540,484
165,649
Commissioners
29,012
29,012
28,699
313
Overtime
907,776
1,528,494
1,438,286
90,208
Vacation pay
136,419
136,419
232,949
(96,530)
Sick leave
502,081
502,081
648,667
(146,586)
Professional/Incentives and holiday pay
636,361
636,361
676,471
(40,110)
Payroll taxes
Social Security
1,179,526
1,179,526
1,300,472
(120,946)
Benefits
Retirement
1,698,624
3,545,098
3,454,149
90,949
Health insurance (including HSA)
3,098,311
2,926,391
2,676,548
249,843
Disability insurance
69,920
69,920
69,419
501
Unemployment
1,719
1,719
-
1,719
Workers compensation
598,343
830,272
833,909
(3,637)
Medical clinic/employee physicals
173,639
173,639
186,686
(13,047)
Post employment health plan
-
438,826
423,783
15,043
Retirement recognition
2,579
2,579
98
2,481
Subtotal - Personnel services
23,740.443
26,706,470
26,510,620
195,850
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT - NN (CONTINUED)
Year Ended September 30, 2017
General Fund
Maintenance
Original
Final
Operating expenditures:
Budget
Budget
Insurance
336,057
336,057
Uniforms
107,398
107,398
Communications
23,514
23,514
Telephone
249,062
249,062
Utilities
237,542
237,542
Maintenance
Variance
Vehicle
351,147
Equipment
65,330
Computer
302,489
Hydrant
34,384
Building
361,764
Supplies
(71,278)
Office
64,470
Protective gear
82,951
Station
48,739
Emergency medical
139,565
Enterprise Lease/Rental
-
Hurricane/emergency
-
Equipment
24,127
Office
40,402
Fire
101,347
Shop
19,341
Warehouse/logistics
5,158
Professional and other fees
Legal and professional
202,006
Property appraiser fees
217,044
Tax collector fees
522,617
Accounting
68,768
Miscellaneous
Travel
32,683
Water/sewer fee St. 44
5,587
Public information officer
2,837
Fuel and oil
150,430
Legal advertisements
8,596
Dues and subscriptions
7,444
CERT team
11,605
Dive team
6,266
Fire prevention
47,278
Training
193,273
Hazardous materials
13,754
Technical rescue
8,725
Boat team
4,977
K-9 search and rescue
-
Honor guard
-
OPS
-
Peer fitness
-
Miscellaneous
8,593
Operational Reserves
Contingency
-
Subtotal - Operating expenditures
4,083,143
The accompanying notes are an integral part of this statement.
Page 80 of 107
351,147
Variance
65,330
Favorable
Actual
(Unfavorable)
383,624
(47,567)
136,041
(28,643)
16,968
6,546
320,340
(71,278)
246,080
(8,538)
351,147
359,703
65,330
38,136
333,435
224,359
34,384
15,717
361,764
368,185
64,470
63,348
82,951
86,527
48,739
57,609
139,565
133,161
44,699
46,861
-
33,262
40,402
40,412
101,347
113,986
19,341
24,127
5,158
5,410
202,006
217,044
522,617
68,768
32,683
5,587
2,837
150,430
8,596
7,444
11,605
6,266
47,278
193,273
13,754
8,725
4,977
8,593
218,024
185,046
530,262
62,587
34,648
5,677
200,634
7,556
6,684
7,877
6,918
29,636
199,658
5,919
5,132
5,145
14,839
(8,556)
27,194
109,076
18,667
(6,421)
1,122
(3,576)
(8,870)
6,404
(2,162)
(33,262)
(10)
(12,639)
(4,786)
(252)
(16,018)
31,998
(7,645)
6,181
(1,965)
5,587
(2,840)
(50,204)
1,040
760
3,728
(652)
17,642
(6,385)
7,835
3,593
(168)
(6,246)
34,864 - 34,864
4,193,652 4,240,098 (46,446)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 81 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - DETAILED STATEMENT - NN (CONTINUED)
Year Ended September 30, 2017
General Fund
Debt service:
Principal reduction 269,839 235,456 221,555 13,901
Interest and fiscal charges 64,322 64,322 57,480 6,842
Subtotal - Debt service 334,161 299,778 279,035 20,743
Reserves:
Reserves 11,561,229 7,297,478 - 7,297,478
TOTAL EXPENDITURES 41,074,208 39,459,573 34,011,954 5,447,619
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES - - (5,959,739) (5,959,739)
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease
Proceeds from disposition of capital assets
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES AND (USES)
2,546,268 2,546,268
32,785 32,785
2,579,053 2,579,053
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $ - $ - (3,380,686) $ (3,380,686)
FUND BALANCE - Beginning 11,450,925
FUND BALANCE - Ending $ 8,070,239
The accompanying notes are an integral part of this statement.
Variance
Original
Final
Favorable
Capital outlay:
Budget
Budget
Actual
(Unfavorable)
Land
-
-
-
-
Station improvements
443,339
326,433
251,876
74,557
Fire & rescue equipment
180,688
180,689
130,953
49,736
Protective gear
138,396
99,714
89,864
9,850
Communication equipment
8,596
8,596
-
8,596
Office equipment
-
-
1,908
(1,908)
Medical equipment
73,066
55,874
53,046
2,828
Computers
146,132
165,703
165,702
1
TRT
9,713
9,713
6,726
2,987
Boat team
35,673
18,481
915
17,566
Vehicle purchase
248,919
34,879
15,760
19,119
Shop equipment
53,790
53,790
50,864
2,926
Training equipment
-
-
1,466
(1,466)
Station equipment & computers
8,597
6,518
(6,518)
Logistics/warehouse
-
-
4,149
(4,149)
Hazardous materials equip.
5,673
5,673
-
5,673
Fire apparatus
-
-
2,200,628
(2,200,628)
Dive equipment
2,650
2,650
1,826
824
Fire prevention
-
-
-
Subtotal -Capital outlay
1,355,232
962,195
2,982,201
(2,020,006)
Debt service:
Principal reduction 269,839 235,456 221,555 13,901
Interest and fiscal charges 64,322 64,322 57,480 6,842
Subtotal - Debt service 334,161 299,778 279,035 20,743
Reserves:
Reserves 11,561,229 7,297,478 - 7,297,478
TOTAL EXPENDITURES 41,074,208 39,459,573 34,011,954 5,447,619
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES - - (5,959,739) (5,959,739)
OTHER FINANCING SOURCES AND (USES)
Proceeds from capital lease
Proceeds from disposition of capital assets
Transfers in
Transfers out
TOTAL OTHER FINANCING SOURCES AND (USES)
2,546,268 2,546,268
32,785 32,785
2,579,053 2,579,053
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $ - $ - (3,380,686) $ (3,380,686)
FUND BALANCE - Beginning 11,450,925
FUND BALANCE - Ending $ 8,070,239
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 107
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND -
SUMMARY STATEMENT - BCI
Year Ended September 30, 2017
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
4,226,386 4,759,801 4,681,946 77,855
666,862 727,965 691,380 36,585
221,352 157,157 488,257 (331,100)
Principal reduction 44,073 38,457 36,187 2,270
Interest and fiscal charges 10,506 10,506 9,388 1,118
Reserves 1,982,282 1,107,860 - 1,107,860
TOTAL EXPENDITURES 7,151,461 6,801,746 5,907,158 894,588
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES - - (981,920) (981,920)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - - -
Transfer out - - - -
TOTAL OTHER FINANCING SOURCES
AND USES - - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $
FUND BALANCE - Beginning
FUND BALANCE - Ending
$ - (981,920) $ (981,920)
1,831,665
$ 849,745
General Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Ad Valorem taxes $
4,325,186 $
4,429,759 $
4,429,759
$ -
Intergovemmental revenue:
State firefighter supplement
7,976
7,976
-
(7,976)
Federal grants
537,500
480,500
474,762
(5,738)
Charges for services
20,450
150
-
(150)
Miscellaneous:
Interest
500
500
(19)
(519)
Other
87,500
51,196
20,736
(30,460)
Subtotal - revenues
4,979,112
4,970,081
4,925,238
(44,843)
Cash brought forward
2,172,349
1,831,665
-
(1,831,665)
TOTAL REVENUES
7,151,461
6,801,746
4,925,238
(1,876,508)
EXPENDITURES
Current
Public safety
Personnel services
Operating expenditures
Capital outlay
Debt service:
4,226,386 4,759,801 4,681,946 77,855
666,862 727,965 691,380 36,585
221,352 157,157 488,257 (331,100)
Principal reduction 44,073 38,457 36,187 2,270
Interest and fiscal charges 10,506 10,506 9,388 1,118
Reserves 1,982,282 1,107,860 - 1,107,860
TOTAL EXPENDITURES 7,151,461 6,801,746 5,907,158 894,588
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES - - (981,920) (981,920)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets - - - -
Transfer out - - - -
TOTAL OTHER FINANCING SOURCES
AND USES - - - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $
FUND BALANCE - Beginning
FUND BALANCE - Ending
$ - (981,920) $ (981,920)
1,831,665
$ 849,745
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 83 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND - DETAILED STATEMENT - BCI
Year Ended September 30, 2017
General Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Ad Valorem taxes $
4,325,186 $
4,429,759 $
4,429,759 $
Intergovernmental revenue:
State firefighter supplement
7,976
7,976
-
(7,976)
Federal grants
537,500
480,500
474,762
(5,738)
Charges for services
20,450
150
-
(150)
Miscellaneous:
Interest
500
500
(19)
(519)
Other
87,500
51,196
20,736
(30,460)
Subtotal - revenues
4,979,112
4,970,081
4,925,238
(44,843)
Cash brought forward
2,172,349
1,831,665
-
(1,831,665)
TOTALREVENUES
7,151,461
6,801,746
4,925,238
(1,876,508)
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters & Admin.
2,401,979
2,401,979
2,374,923
27,056
Salaries - harmonization
312,460
358,162
312,460
45,702
Commissioners
4,739
4,739
4,688
51
Overtime
148,268
252,918
234,919
17,999
Vacation pay
22,281
22,281
38,048
(15,767)
Sick leave
82,006
82,006
105,948
(23,942)
Incentives and holiday pay
103,937
103,937
110,489
(6,552)
Payroll taxes
Social Security
192,654
192,654
212,408
(19,754)
Benefits
Retirement
287,374
588,959
564,172
24,787
Health insurance
506,052
477,972
437,165
40,807
Disability insurance
11,420
11,420
11,338
82
Benefits harmonization
22,702
22,702
39,459
(16,757)
Unemployment
281
281
-
281
Workers compensation
101,451
139,335
136,204
3,131
Medical clinic/employee physicals
28,361
28,361
30,492
(2,131)
Post employment health plan
-
71,674
69,217
2,457
Retirement recognition
421
421
16
405
Subtotal - Personnel services
4,226,386
4,759,801
4,681,946
77,855
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
Page 84 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET
AND ACTUAL -
GENERAL FUND - DETAILED STATEMENT -
BCI (CONTINUED)
Year Ended September 30, 2017
General Fund
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget Actual
(Unfavorable)
Insurance
54,889
54,889
62,658
(7,769)
Uniforms
17,542
17,542
22,220
(4,678)
Communications
3,841
3,841
2,771
1,070
Telephone
40,680
40,680
52,322
(11,642)
Utilities
38,798
38,798
39,161
(363)
Maintenance
Vehicle
57,353
57,353
58,751
(1,398)
Equipment
10,670
10,670
6,229
4,441
Computer
49,406
54,460
36,645
17,815
Hydrant
5,616
5,616
2,567
3,049
Building
59,086
59,086
60,134
(1,048)
Supplies
Office
10,530
10,530
16,552
(6,022)
Protective gear
13,549
13,549
14,133
(584)
Station
7,961
7,961
9,410
(1,449)
Emergency medical
22,795
22,795
25,690
(2,895)
Enterprise Lease/Rental
-
7,301
7,654
(353)
Hurricane/emergency
-
-
5,433
(5,433)
Equipment
Office
6,598
6,598
396
6,202
Fire
16,553
16,553
18,617
(2,064)
Shop
3,159
3,159
-
3,159
Warehouse/logistics
842
842
883
(41)
Professional and other fees
Legal and professional
32,994
32,994
35,610
(2,616)
Property appraiser fees
35,450
35,450
30,224
5,226
Tax collector fees
85,360
85,360
86,609
(1,249)
Accounting
11,232
11,232
10,223
1,009
Miscellaneous
Travel
5,317
5,317
5,659
(342)
Water/sewer fee St. 44
913
913
1,032
(119)
Public information officer
463
463
927
(464)
Public education officer
-
-
-
-
Fuel and oil
24,570
24,570
32,770
(8,200)
Legal advertisements
1,404
1,404
1,237
167
Dues and subscriptions
1,216
1,216
1,092
124
CERT team
1,895
1,895
1,286
609
Dive team
1,023
1,023
1,130
(107)
Fire prevention
7,722
7,722
4,840
2,882
Training
31,543
31,543
32,610
(1,067)
Hazardous materials
2,246
2,246
967
1,279
Technical rescue
1,425
1,425
838
587
Boat team
813
816
840
(24)
K-9 search and rescue
-
-
-
-
Honor guard
-
OPS
-
Peer fitness
-
-
-
-
Miscellaneous
1,408
1,404
1,260
144
Operational Reserves
Contingency
-
48,749
-
48,749
Subtotal - Operating expenditures
666,862
727,965
691,380
36,585
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND - DETAILED STATEMENT - BCI (CONTINUED)
Year Ended September 30, 2017
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets
Transfer out - -
TOTAL OTHER FINANCING SOURCES AND USES -
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $ - $ (981,920) $ (981,920)
FUND BALANCE - Beginning 1,831,665
FUND BALANCE - Ending $ 849,745
General Fund
Variance
Original
Final
Favorable
Capital outlay:
Budget
Budget
Actual
(Unfavorable)
Land
-
-
-
Station improvements
72,410
53,317
42,204
11,113
Fire & rescue equipment
29,512
29,511
22,558
6,953
Protective gear
22,604
16,286
14,678
1,608
Communication equipment
1,404
1,404
-
1,404
Office equipment
-
-
312
(312)
Medical equipment
11,934
9,126
8,664
462
Computers
23,868
27,065
27,065
-
TRT
1,587
1,587
1,098
489
Boat team
5,827
3,019
150
2,869
Vehicle purchase
40,656
5,696
2,574
3,122
Shop equipment
8,786
8,786
8,307
479
Training equipment
-
-
239
(239)
Station equipment
-
-
-
Logistics/warehouse
1,404
-
678
(678)
Hazardous materials equipment
927
927
-
927
Fire apparatus
-
-
359,432
(359,432)
Dive equipment
433
433
298
135
Subtotal -Capital outlay
221,352
157,157
488,257
(331,100)
Debt service:
Principal reduction
44,073
38,457
36,187
2,270
Interest and fiscal charges
10,506
10,506
9,388
1,118
Subtotal - Debt service
54,579
48,963
45,575
3,388
Reserves:
Reserves
1,982,282
1,107,860
-
1,107,860
TOTAL EXPENDITURES
7,151,461
6,801,746
5,907,158
894,588
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
-
(981,920)
(981,920)
OTHER FINANCING SOURCES AND USES
Proceeds from disposition of capital assets
Transfer out - -
TOTAL OTHER FINANCING SOURCES AND USES -
EXCESS OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES $ - $ (981,920) $ (981,920)
FUND BALANCE - Beginning 1,831,665
FUND BALANCE - Ending $ 849,745
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 107
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - COMBINED SERVICE DELIVERY AREAS -
BUDGET AND ACTUAL - IMPACT FEE FUND - SUMMARY STATEMENT
Year Ended September 30, 2017
OTHER FINANCING SOURCES AND (USES)
Transfers in - -
TOTAL OTHER FINANCING SOURCES
AND (USES) - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $
FUND BALANCE - Beginning
FUND BALANCE - Ending
Impact Fee Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Fees:
Impact fees $
2,000,000 $
2,000,000 $
196,157
$ (1,803,843)
Miscellaneous:
Interest
1,000
1,000
4,876
3,876
Other
-
-
14,566
14,566
Subtotal - revenues
2,001,000
2,001,000
215,599
(1,785,401)
Cash brought forward
1,253,252
1,253,252
-
(1,253,252)
TOTAL REVENUES
3,254,252
3,254,252
215,599
(3,038,653)
EXPENDITURES
Current
Public safety
Operating expenditures
71,000
71,000
17,460
53,540
Capital outlay
1,650,000
1,650,000
125,498
1,524,502
Debt service:
Principal
57,500
57,500
57,500
-
Interest and fiscal charges
17,250
17,250
15,141
2,109
Reserves
1,458,502
1,458,502
-
1,458,502
TOTAL EXPENDITURES
3,254,252
3,254,252
215,599
3,038,653
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES
-
-
-
-
OTHER FINANCING SOURCES AND (USES)
Transfers in - -
TOTAL OTHER FINANCING SOURCES
AND (USES) - -
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING USES $
FUND BALANCE - Beginning
FUND BALANCE - Ending
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 87 of 107
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - COMBINED SERVICE DELIVERY AREAS -
BUDGET AND ACTUAL - IMPACT FEE FUND - DETAILED STATEMENT
Year Ended September 30, 2017
EXPENDITURES
Operating expenditures:
Impact fee collection 71,000 71,000 17,460 53,540
Subtotal - Operating expenditures 71,000 71.000 17,460 53,540
Capital outlay
Preplanning
-
Impact Fee Fund
2,500
(2,500)
Construction in progress
1,050,000
1,050,000
Variance
937,702
Original
Final
400,000
Favorable
REVENUES
Budget
Budget
Actual
(Unfavorable)
Fees:
Equipment
150,000
150,000
-
Impact fees $
2,000,000 $
2,000,000 $
196,157
$ (1,803,843)
Miscellaneous:
Interest
1,000
1,000
4,876
3,876
Other
-
-
14,566
14,566
Subtotal -revenues
2,001,000
2,001,000
215,599
(1,785,401)
Cash brought forward
1,253,252
1,253,252
-
(1,253,252)
TOTAL REVENUES
3,254,252
3,254,252
215,599
(3,038,653)
EXPENDITURES
Operating expenditures:
Impact fee collection 71,000 71,000 17,460 53,540
Subtotal - Operating expenditures 71,000 71.000 17,460 53,540
Capital outlay
Preplanning
-
-
2,500
(2,500)
Construction in progress
1,050,000
1,050,000
112,298
937,702
Emergency signal -station #42
400,000
400,000
10,700
389,300
Protective gear
50,000
50,000
-
50,000
Equipment
150,000
150,000
-
150,000
Subtotal - Capital outlay
1,650,000
1,650,000
125,498
1,524,502
Debt service:
Principal
57,500
57,500
57,500
-
Interest and fiscal charges
17,250
17,250
15,141
2,109
Subtotal - Debt service
74,750
74,750
72,641
2,109
Reserves:
1,458,502
1,458,502
-
1,458,502
TOTAL EXPENDITURES
3,254,252
3,254,252
215,599
3,038,653
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES
-
-
-
OTHER FINANCING SOURCES AND (USES)
Transfers in (out)
TOTAL OTHER FINANCING SOURCES
AND (USES)
-
EXCESS OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER)
EXPENDITURES AND OTHER FINANCING USES $
$
$
FUND BALANCE - Beginning
FUND BALANCE - Ending
$
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 107
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL -COMBINED SERVICE DELIVERY AREA -
INSPECTION FEE FUND - SUMMARY STATEMENT
Year Ended September 30, 2017
The accompanying notes are an integral part of this statement.
Inspection Fee Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Charges for services
Inspection fees $
1,000,000 $
810,915 $
830,970
$ 20,055
Plan review fees
1,000,000
794,093
794,093
-
Miscellaneous:
Interest
2,000
914
913
(1)
Subtotal - revenues
2,002,000
1,605,922
1,625,976
20,054
Cash brought forward
1,905
4,942
-
(4,942)
TOTALREVENUES
2,003,905
1,610,864
1,625,976
15,112
EXPENDITURES
Current
Public safety
Personnel services
1,754,321
1,479,659
1,479,657
2
Operating expenditures
175,577
131,204
131,207
(3)
Capital outlay
72,500
-
-
-
Reserves
1,507
1
-
1
TOTAL EXPENDITURES
2,003,905
1,610,864
1,610,864
-
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $
- $
-
15,112
$ 15,112
FUND BALANCE - Beginning
4,943
FUND BALANCE - Ending
$
20,055
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 107
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - COMBINED SERVICE
DELVERY AREA - INSPECTION FEE FUND - DETAILED STATEMENT
Year Ended September 30, 2017
The accompanying notes are an integral part of this statement.
Inspection Fee Fund
Variance
Original
Final
Favorable
Budget
Budget
Actual
(Unfavorable)
REVENUES
Charges for services:
Inspection fees $
1,000,000 $
810,915 $
830,970
$ 20,055
Plan review fees
1,000,000
794,093
794,093
-
Miscellaneous:
Interest
2,000
914
913
(1)
Subtotal - revenues
2,002,000
1,605,922
1,625,976
20,054
Cash brought forward
1,905
4,942
-
(4,942)
TOTAL REVENUES
2,003,905
1,610,864
1,625,976
15,112
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Regular
1,209,508
1,055,458
1,055,458
Overtime
30,000
99,196
99,196
Sick leave
25,000
-
-
Vacation pay
-
-
-
Professional/Incentives and holiday pay
6,000
6,000
9,600
(3,600)
Payroll taxes
Social Security
95,891
95,891
89,065
6,826
Benefits
Retirement
139,900
114,247
117,078
(2,831)
Health insurance
198,210
62,690
62,690
-
Disability insurance
10,000
6,365
-
6,365
Medical clinic/employee physicals
1,000
1,000
1,000
Unemployment compensation
-
-
-
-
Workers compensation
38,812
38,812
46,570
(7,758)
Subtotal - Personnel services
1,754,321
1,479,659
1,479,657
2
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 107
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - COMBINED SERVICE
DELVERY AREA - INSPECTION FEE FUND - DETAILED STATEMENT (CONTINUED)
Year Ended September 30, 2017
Fee Fund
Capital outlay:
Office facility - -
Vehicles 72,500 -
Subtotal - Capital outlay 72,500
Debt service:
Principal reduction -
Interest and fiscal charges -
Subtotal - Debt service
Reserves: 1,507 1 - I
TOTAL EXPENDITURES 2,003,905 1,610,864 1,610,864
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $ - $ - 15,112 $ 15,112
FUND BALANCE - Beginning 4,943
FUND BALANCE - Ending $ 20,055
The accompanying notes are an integral part of this statement.
Variance
Original
Final
Favorable
Operating expenditures:
Budget
Budget
Actual
(Unfavorable)
Uniforms
1,000
-
-
Telephone
1,000
-
Utilities
2,500
-
-
-
Rent
50,000
50,000
50,000
Maintenance
Computer software & supplies
76,177
67,304
68,370
(1,066)
Hydrant
-
_
-
Supplies
Office
2,000
-
Miscellaneous
Employee physicals
-
-
-
-
Dues & subscriptions
6,900
1,900
1,634
266
Fire prevention
5,000
1,000
939
61
Training
25,000
6,000
4,282
1,718
Travel
6,000
5,000
5,982
(982)
Subtotal - Operating expenditures
175,577
131,204
131,207
(3)
Capital outlay:
Office facility - -
Vehicles 72,500 -
Subtotal - Capital outlay 72,500
Debt service:
Principal reduction -
Interest and fiscal charges -
Subtotal - Debt service
Reserves: 1,507 1 - I
TOTAL EXPENDITURES 2,003,905 1,610,864 1,610,864
EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES $ - $ - 15,112 $ 15,112
FUND BALANCE - Beginning 4,943
FUND BALANCE - Ending $ 20,055
The accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2017
Federal
CFDA/
Grantor Agency/Program Title Number
FEDERAL AGENCY
U.S. Department of Homeland Security
TYPE A - MAJOR
Staffing of Adequate Fire and Emergency Response
SAFER - Hiring Grant 97.083
Staffing of Adequate Fire and Emergency Response
SAFER - Recruitment & Retention Grant 97.083
Grantor's
Number
Program or
Award
Amount
Receipts/
Revenue
EMW-2014-FH-00651 $ 1,666,596 $ 845,636
EMW-2015-FF-00426 527,473 103,888
2,194,069 949,524
TYPE B - NON MAJOR
Passed through the Florida Department of
Financial Services - Florida State Fire Marshal Office
Disaster Grant - Public Assistance 97.036 DR4283 62,356 62,356
TOTAL FEDERAL FINANCIAL AWARDS $ 2,256,425 $ 1,011,880
(1) Includes receivable of $78,054
Page 91 of 107
Disbursements/ Pass through
Expenditures to Subrecipients
(1) $ 845,636
103,888
949,524
62,356
$ 1,011,880 $ -
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 92 of 107
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended September 30, 2017
NOTE A - BASIS OF PRESENTATION
The Schedule of Expenditures of Federal Awards has been prepared on the accrual
basis of accounting in conformity with accounting principles generally accepted in the
United States of America and is in accordance with the provisions of the OMB
Uniform Guidance.
Expenditures reported on the Schedule of Expenditures of Federal Awards include
cash disbursements, whether capitalized or expensed, during the fiscal year as well
as grant related amounts recorded as payable at year end. Revenues reported on
the Schedule of Expenditures of Federal Awards include cash receipts, whether
recognized or deferred, as well as grant receivables recorded at year end.
NOTE B - INDIRECT COSTS
The District did not routinely allocate indirect costs to Federal Awards. Costs
charged to such programs were direct costs.
The District has elected not to use the 10% de minimus indirect cost rate allowed
under the Uniform Guidance.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 93 of 107
SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - FLORIDA RETIREMENT SYSTEM (FRS) PENSION
PLAN (1)
District's proportion of the net pension liability
District's proportionate share of the net pension liability
District's covered -employee payroll
District's proportionate share of the net pension liability
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
2017 2016 2015 2014
0.038802719% 0.040983896% 0.038209683% 0.041592399%
$ 11,477,584 $ 10,348,466 $ 4,935,293 $ 2,537,748
$ 6,933,311 $ 6,745,995 $ 6,326,722 $ 6,293,887
165.54% 153.40% 79.01% 40.32%
83.89% 84.88% 92.00% 96.09%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
FLORIDA RETIREMENT SYSTEM (FRS) PENSION PLAN (1)
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
District's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
2017 2016 2015
$ 1,119,238 $ 1,099,170 $ 967,270 $
1,119,238 1,099,170
$ 6,933,311 ' $ 6,745,995 $
16.14% 16.29%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
967,270
6,326,722 $
15.29%
GASB 68 requires information for 10 years. However, until a full ]0 -year trend is compiled,
governments should present information for only those years for which information is available.
2014
971,792
971,792
6,293,887
15.44%
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 107
SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET
PENSION LIABILITY - HEALTH INSURANCE SUBSIDY (HIS) PENSION
PLAN (1)
District's proportion of the net pension liability
District's proportionate share of the net pension liability
District's covered -employee payroll
District's proportionate share of the net pension liability
as a percentage of its covered -employee payroll
Plan fiduciary net position as a percentage of the
total pension liability
2017
2016
2015
2014
0.021233558%
0.021530658%
0.021138780%
0.021145042%
$ 2,270,390
$ 2,509,309
$ 2,155,823
$ 1,977,113
$ 6,933,311
$ 6,745,995
$ 6,326,722
$ 6,293,887
32.75%
37.20%
34.07%
31.41%
1.64%
0.97%
0.50%
0.99%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
SCHEDULE OF DISTRICT CONTRIBUTIONS -
HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1)
Contractually required contribution
Contributions in relation to the contractually
required contribution
Contribution deficiency (excess)
District's covered -employee payroll
Contributions as a percentage of covered -employee
payroll
2017 2016 2015 2014
$ 84,244 $ 87,198 $ 78,787 $ 65,973
84,244 87,198 78,787 65,973
$ 6,933,311 $ 6,745,995 $ 6,326,722 $ 6,293,887
1.22% 1.29% 1.25% 1.05%
Notes: (1) The amounts presented for each fiscal year were determined as of September 30.
GASB 68 requires information for 10 years. However, until a full 10 -year trend is compiled,
governments should present information for only those years for which information is available.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 95 of 107
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2017
Changes of Assumptions
Actuarial assumptions for both cost-sharing defined benefit plans are reviewed
annually by the Florida Retirement System Actuarial Assumptions Conference. The
FRS Pension Plan has a valuation performed annually. The HIS Program has a
valuation performed biennially that is updated for GASB reporting in the year a
valuation is not performed. The most recent experience study for the FRS Pension
Plan was completed in 2014 for the period July 1, 2008 through June 30, 2013.
Because the HIS Program is funded on a pay-as-you-go basis, no experience study
has been completed for that program. The actuarial assumptions that determined the
total pension liability for the HIS Program were based on certain results of the most
recent experience study for the FRS Pension Plan.
The total pension liability for each cost-sharing defined benefit plan was determined
using the individual entry age actuarial cost method. Inflation increases for both plans
is assumed at 2.60%. Payroll growth, including inflation, for both plans is assumed at
3.25%. Both the discount rate and the long-term expected rate of return used for
FRS Pension Plan investments was reduced from 7.60% to 7.10%. The plan's
fiduciary net position was projected to be available to make all projected future
benefit payments of current active and inactive employees. Therefore, the discount
rate for calculating the total pension liability is equal to the long-term expected rate of
return.
Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond
rate was increased from 2.85% to 3.58% and was used to determine the total pension
liability for the program (Bond Buyer General Obligation 20 -Bond Municipal Bond
Index). Mortality assumptions for both plans were based on the Generational
RP -2000 with Projection Scale BB tables.
Florida Retirement System Pension Plan
There were no changes in actuarial assumptions. As of June 30, 2017, the inflation
rate assumption remained at 2.6 percent, the real payroll growth assumption was
0.65 percent, and the overall payroll growth rate assumption remained at 3.25
percent. The long-term expected rate of return was reduced from 7.60 percent to
7.10 percent.
Health Insurance Subsidy Pension Plan
The municipal rate used to determine total pension liability increased from 2.85
percent to 3.58 percent.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 96 of 107
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
September 30, 2017
Pension Expense and Deferred Outflows/Inflows of Resources
In accordance with GASB 68, paragraphs 54 and 71, changes in the net pension
liability are recognized in pension expense in the current measurement period, except
as indicated below. For each of the following, a portion is recognized in pension
expense in the current reporting period, and the balance is amortized as deferred
outflows or deferred inflows of resources using a systematic and rational method over
a closed period, as defined below:
• Differences between expected and actual experience with regard to economic
and demographic factors - amortized over the average expected remaining
service life of all employees that are provided with pensions through the
pension plan (active and inactive employees)
• Changes of assumptions or other inputs - amortized over the average
expected remaining service life of all employees that are provided with
pensions through the pension plan (active and inactive employees)
• Changes in proportion and differences between contributions and
proportionate share of contributions - amortized over the average expected
remaining service life of all employees that are provided with pensions through
the pension plan (active and inactive employees)
• Differences between expected and actual earnings on pension plan investments
- amortized over five years
Employer contributions to the pension plans from employers are not included in
collective pension expense. However, employee contributions are used to reduce
pension expense.
The average expected remaining service life of all employees provided with pensions
through the pension plans at June 30, 2017, was 6.4 for FRS and 7.2 years for HIS
at June 30, 2016 and 2017.
ADDITIONAL REPORTS
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF BASIC
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
Tax Division
Page 97 of 107
We have audited, 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 of America, the basic financial
statements of the governmental activities and each major and non -major fund of North Collier
Fire Control and Rescue District (the "District") as of and for the year ended September 30,
2017, and the related notes to the financial statements which collectively comprise the District's
basic financial statements as listed in the table of contents and have issued our report thereon
dated February 23, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control. Accordingly, we do not express an opinion on the effectiveness of the District's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the basic financial statements will not be prevented or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
INTEGRITY ......... SERVICE ......... I XPERTENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 98 of 107
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses, as
defined previously. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue
District's financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not
an objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance that are required to be reported under Government
Auditiniz Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
4&0 1 1 , 41
TUSCAN & COMPANY, P. .
Fort Myers, Florida
February 23, 2018
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Independent Auditor's Report on Compliance for Each Major
Proeram/Pro_ject and on Internal Control Over Compliance Required by
the Uniform Guidance
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
Private Companies Practice Section
Page 99 of 109, Division
Report on Compliance for Each Major Federal Program
We have audited North Collier Fire Control and Rescue District's compliance with the types of
compliance requirements described in the OMB Compliance Supplement Supplement, as
applicable, that could have a direct and material effect on each of North Collier Fire Control
and Rescue District's major federal programs for the year ended September 30, 2017. North
Collier Fire Control and Rescue District's major federal programs are identified in the summary
of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts, and grants applicable to its major federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of North Collier Fire
Control and Rescue District's major federal programs based on our audit of the types of
compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States of America; and audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards" ("Uniform Guidance"). Those
standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about North Collier Fire
Control and Rescue District's compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
INT'EIGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 100 of 107
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of
North Collier Fire Control and Rescue District's compliance with those requirements.
Opinion on Each Major Federal Program
In our opinion, North Collier Fire Control and Rescue District complied, in all material
respects, with the types of compliance requirements referred to above that could have a direct
and material effect on each of its major federal programs for the year ended September 30,
2017.
Report on Internal Control Over Compliance
Management of North Collier Fire Control and Rescue District is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance requirements
referred to above. In planning and performing our audit of compliance, we considered North
Collier Fire Control and Rescue District's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of North Collier Fire Control and
Rescue District's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Page 101 of 107
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be deficiencies, material weaknesses or significant
deficiencies. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
Purpose of the Report
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
�dvW
0
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
February 23, 2018
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS
Year ended September 30, 2017
Section I — Summary of Auditor's Results
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
Control deficiency(ies) identified?
Significant deficiency(ies) identified?
Material weakness(es) identified?
Noncompliance material to financial statements
noted?
Federal Awards
Internal control over major programs:
Unmodified
Page 102 of 107
Yes X No
Yes X No
Yes X None reported
Yes X No
Control deficiency(ies) identified?
Yes X No
Significant deficiency(ies) identified?
Yes X No
Material weakness(es) identified?
Yes X None reported
Type of auditors report issued on
compliance for major programs
Unmodified
Any audit findings disclosed that are required to be
reported in accordance with 2 CFR,
Section 200.516(a)?
Yes X No
Identification of major programs (Type A):
CFDA
Number(s) Name of Federal Program or Cluster
U.S. Department of Homeland Security
97.083 Staffing of Adequate Fire and Emergency Response
SAFER - Hiring Grant
97.083 Staffing of Adequate Fire and Emergency Response
SAFER - Recruitment and Retention Grant
Dollar threshold used to distinguish between
Type A and Type B programs Threshold used was $750,000.
Auditee qualified as low-risk auditee? Yes X No
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 103 of 107
SCHEDULE OF FINDINGS AND QUESTIONED
COSTS - FEDERAL AWARDS
Year ended September 30, 2017
Listing of Subrecipients and matching amounts passed -through:
None - not applicable
Section II- Financial Statement Findings
There were no deficiencies, material weaknesses, or instances of noncompliance related to
the financial statements.
Section III- Federal Award Findings and Questioned Costs
There were no audit findings related to Federal Awards required to be reported by 2 CFR,
Section 200.516(a).
Section IV Status of Federal Prior Year Findings
There were no prior year findings.
TUSCAN
& Company, PA
Certified Public Accountants & Consultants
Affiliations
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
Private Companies Practice Section
Tax Division
Page 104 of 107
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415, FLORIDA STATUTES
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
We have examined North Collier Fire Control and Rescue District's compliance with Section
218.415, Florida Statutes, regarding the investment of public funds during the year
ended September 30, 2017. Management is responsible for North Collier Fire Control and
Rescue District's compliance with those requirements. Our responsibility is to express an opinion
on North Collier Fire Control and Rescue District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a test
basis, evidence about North Collier Fire Control and Rescue District's compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on North Collier Fire Control and Rescue
District's compliance with specified requirements.
In our opinion, North Collier Fire Control and Rescue District complied, in all material respects,
with the aforementioned requirements for the year ended September 30, 2017.
This report is intended solely for the information and use of the North Collier Fire Control and
Rescue District and the Auditor General, State of Florida, and is not intended to be and should not
be used by anyone other than these specified parties.
/101 / �- 41
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
February 23, 2018
INTEGRITY ......... SERVICE ..........EXPERIENCE
12621 World Plaza Lane, Building 55 - Fort Myers, FL 33907 - Phone: (239) 333-2090 - Fax: (239) 333-2097
TUSCAN
Affiliations
Florida Institute of Certified Public Accountants
& Company, PA American Institute of Certified Public Accountants
Private Companies Practice Section
C=ffitd Public Accountants 8i; Consultants Tax Division
Page 105 of 107
INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT
Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
We have audited the accompanying basic financial statements of North Collier Fire Control and
Rescue District (the "District") as of and for the year ended September 30, 2017 and have issued
our report thereon dated February 23, 2018.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States of America and Chapter
10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report
on Internal Control over Financial Reporting and Compliance and Other Matters based on an
audit of the financial statements performed in accordance with Government Auditing Standards
and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which
were dated February 23, 2018, should be considered in conjunction with this report to
management.
Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor
General, which governs the conduct of local governmental entity audits performed in the State of
Florida. This letter included the following information, which is not included in the aforementioned
auditor's report:
Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine
whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. The prior year
report contained no financially significant comments.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the
management letter any recommendations to improve financial management. No such
recommendations were noted to improve financial management.
INTEGRITY ......... SERVICE ......... EXPERIENCE
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239) 333-2090 • Fax: (239) 333-2097
Page 106 of 107
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address
violations or noncompliance with provisions of contracts or grant agreements, or
abuse, that have an effect on the financial statements that is less than material but more
than inconsequential. In connection with our audit, we did not have any such findings.
Section 10.554(1)(i)4., Rule of the Auditor General, requires that the name or official
title and legal authority for the primary government and each component unit of the
reporting entity be disclosed in the management letter, unless disclosed in the notes to
the financial statements. The District discloses this information in the notes to the
financial statements.
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires a statement be
included as to whether or not the local government entity has met one or more of the
conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the District
did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we determine
whether the annual financial report for the District for the year ended September 30,
2017, filed with the Florida Department of Financial Services pursuant to Section
218.32(1)(a) Florida Statutes, is in agreement with the annual financial audit report for
the year ended September 30, 2017. In connection with our audit, we determined that
these two reports were in agreement.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(7), Rules of the Auditor General,
we applied financial condition assessment procedures. It is management's
responsibility to monitor the District's financial condition, and our financial condition
assessment was based in part on representations made by management and the review
of financial information provided by management.
Pursuant to Section 10.554(1)(i)5.d., Rules of the Auditor General, requires a
statement indicating a failure, if any, of a component unit Special District to provide
financial information necessary to a proper reporting of the component unit within the
audited financial statements of this entity (F.S. Section 218.39(3)(b)). There are no
known component special districts required to report within these financial statements.
Page 107 of 107
Section 10.556(10)(a), Rules of the Auditor General, requires that the scope of our
audit to determine the entity's compliance with the provisions of Section 218.415,
Florida Statutes, regarding the investment of public funds. In connection with our
audit, we determined that the District complied with Section 218.415, Florida Statutes
as reported in our Independent Accountant's Report on Compliance with Section
218.415, Florida Statutes dated February 23, 2018, included herein.
PRIOR YEAR COMMENTS:
There were no financially significant prior year comments.
CURRENT PERIOD COMMENT:
There were no financially significant comments noted.
Pursuant to Chapter 119, Florida Statutes, this management letter is a public record and its
distribution is not limited. Auditing standards generally accepted in the United States of America
require us to indicate that this letter is intended solely for the information and use of the Board of
Commissioners, management, the Auditor General of the State of Florida and other federal and
state agencies. This report is not intended to be and should not be used by anyone other than
these specified parties.
, , 1,�, I " �, W,
TUSCAN & COMPANY, P.A.
Fort Myers, Florida
February 23, 2018
EXHIBIT
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSIONERS
M. James Burke ■ Christopher L. Crossan ■ Norman E. Feder ■ J. Christopher Lombardo ■ John 0. McGowan
May 10, 2018
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, FL 32399-1450
We are pleased to note that the audit report for the fiscal year 2016/2017 for the North Collier Fire
Control and Rescue District reflected no current or prior year comments which require
management's response.
The Board of Fire Commissioners and management staff of the North Collier Fire Control &
Rescue District maintain their commitment to create and maintain internal controls, and policy and
procedures to insure accurate reporting, accountability and provide for the financial stability of the
District.
Sincerely,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
1885 Veterans Park Drive Naples, FL 34109 ■ (239) 597-3222 ■ Fax (239) 597-7082 ■ www.northcollierfire.com