North Collier FCRD Audit FY End 09/30/2018 {
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NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSIONERS
M.James Burke .James Calamari•Christopher L.Crossan•Norman E.Feder•J.Christopher Lombardo
June 21, 2019
Mr. Derek Johnson, General Accounting Manager
Clerk of the Circuit Court,Finance Department
3299 Tamiami Trail East,#403
Naples, FL 34112-4961
Sent via Federal Express
Dear Mr. Johnson,
Enclosed please find a copy of the District's annual audit for the period ended September 30,2018.
Please contact me if you have any questions or would like to receive an electronic copy.
Sincerely,
— -1‘- ';<-7;"--------
BEN VAN KLINGEREN, CPA
Chief Financial Officer
bvanklingeren cinorthcollierfire.com
239-552-1322
1885 Veterans Park Drive Naples,FL 34109■(239)597 3222.Fax(239)597 7082■ www.northcollierflre.com
NORTH COLLIER FIRE CONTROL
AND RESCUE DISTRICT
BASIC FINANCIAL STATEMENTS
TOGETHER WITH ADDITIONAL REPORTS
fl
YEAR ENDED
SEPTEMBER 30,2018
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:
171 Governmental Funds:
Balance Sheet 7
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position 8
Statement of Revenues,Expenditures and Changes
in Fund 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 I I
Statement of Changes in Fiduciary Net Position 12
NOTES TO THE FINANCIAL STATEMENTS 13-76
,I OTHER INFORMATION
COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA
Governmental Funds
Combining Balance Sheet-General Fund-by Service Delivery Area 77
Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-
General Fund-by Service Delivery Area 78
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 79
Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual -
General Fund- Detailed Statement 80-82
BIG CORKSCREW ISLAND SERVICE DELIVI RYARIA
BUDGET I 0 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 83
Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual -
General Fund Detailed Statement 84-86
TABLE OF CONTENTS(CONTINUED)
Page(s1
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 87
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
Impact Fee Fund-Combined Service Delivery Areas Detailed Statement 88
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 89
Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual-
L 1 Inspection Fee Fund-Detailed Statement 90-91
OTHER REQUIRED SUPPLEMENTARY INFORMATION
Schedule of District's Proportionate Share of the Net Pension Liability-Florida Retirement
System Pension Plan(FRS) 92
Schedule of District Contributions-Florida Retirement System Pension Plan(FRS) 92
Schedule of District's Proportionate Share of the Net Pension Liability-Health Insurance
Subsidy Pension Plan(HIS) 93
Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS) 93
Notes to the Required Supplementary Information-FRS/HIS 94-95
Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and
Related Notes to the Schedule 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 Accountant's Report on Compliance with
Section 218.415,Florida Statutes 99
--I Independent Auditor's Report to Management 100-102
Management's Response to Independent Auditor's Report to Management Fxhibit
uAffiliations
Ar T scAN Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
& Company, PA
Pr-.‘at:-Companies Practice Section
l a,,D vtston
Certified Public Accountants&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
l:.
I 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
r year ended September 30,2018,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 30,2018,which represent 100°0 of the assets,liabilities and net
position as well as 100°0 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(PRS)or Health Insurance Subsidy Pension Plan(I IIS)as of and
for the year ended June 30,2018. 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 30,2018 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,arc 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
1 isk assessments,the auditor considers internal control relevant to the District's preparation and fair
INTEGRITY SERVICE EXPERIENCE®
r-1
"1 12621 World Placa Lane, Building 55 • Fort Myers, FL 33907 • Phoni. (239) 333 2090 • Fax: (239) 333 209,
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.
r
Summary of Opinions
f Opinion Unit Type of Opinion
Governmental Activities Unmodified
General Fund Unmodified
1 ' Impact Fee Fund Unmodified
Inspection Fee Fund Unmodified
Firefighters'Pension Trust Fund Unmodified
Opinions
Unmodified Opinions
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 30,2018,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.
Emphasis of Mailers
During the year ended September 30,2018,the District's unrestricted net asset balance remained a deficit of
$7,858,148,due substantially to recording the current year actuarially determined OPEB increase in the liability of
$56,124 and the District's decrease in its proportionate share of its pension liability of$2,089,921. The total OPEB
and net pension liability at September 30,2018 were$10,173,608 and$14,648,252,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.
As described in Note P,the District adopted the provisions on Governmental Accounting Standards Board
Statement(GASBS)No.75,Accounting and Financial Reporting for Postemployment Benefits Other than
Pensions. As a result of the implementation of GASBS No. 75, the District reported a restatement of its
beginning net position for the change in accounting principle and recorded the District's respective net OPEB
liability. The auditor's opinion was not modified with respect to this restatement.
011ier Mailers
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
I lability - Florida Retirement System Pension Plan(IRS),Schedule of District Contributions I lorida Retiiement
Board of Commissioners
North Collier Fire Control and Rescue District
Page 3
System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health
1 Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension
Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability
and Related Ratios GASB No.75 and Related Notes to the Schedule,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 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), Notes to the Required Supplementary Information and Schedule of Changes in the
Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule,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
11 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
(FRS), r - mPension ,Schedule
of thePension DistriPlanct's ProportionateSchedule ShofareDistrict of the Net
ContPensionibutions LiabilityFlorida-RetireHealth Insurance
entSystem Subsidy PensionPlan(FRS)Plan(HIS),
Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS), Notes to the Required
Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75
and Related Notes to the Schedule,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
L 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
l derived from and relates directly to the underlying accounting and other records used to prepare the basic
LJ 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
3 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.
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,arc presented for purposes of additional analysis and are not a required part oldie basic financial
,,tatements.
Board of Commissioners
North Collier Fire Control and Rescue District
Page 4
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 fmancial 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.
C1
Other Reporting Required by Section 218.415,Florida Statutes
In accordance with Section 218.415,Florida Statutes,we have also issued a report dated May 20,2019,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 218.415,Florida Statutes.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated May 20,2019,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.
`-tiAMP1
.MAJLost)
TUSCAN&COMPANY, P.A.
Port Myers, Florida
May 20,2019
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MANAGEMENT'S DISCUSSION
AND ANALYSIS
(MD&A)
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Management's Discussion and Analysis
of Financial Statements FYE September 30,2018
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 30,2018. These statements include the recently adopted
requirements of GASB Statements#34,#68 and#74/75 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 30,2018 versus September 30,2017.
District Highlights
1 '' 1. At the conclusion of fiscal year 2018, the District's assets exceeded its liabilities,
resulting in net assets of$25,778,323 as compared to net assets at September 30,
L .1 2017 of$28,256,992.
2. The District had($7,858,148)deficit of unrestricted net assets at September 30, 2018
as compared to($3,046,464) deficit of unrestricted net assets at September 30,2017.
The amount of unrestricted net assets(deficit)increased by$4,811,684.
3. Total revenues on the government-wide funds basis increased$7,420,341 or 21%
[ percent, in comparison to the prior year.
4. Total expenses on the government-wide basis increased by $4,689,102 or 14%
percent, in comparison to the prior year.
Government-wide Financial Statements
Government-wide financial statements(Statement of Net Position and Statement of
j 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 arc 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 arc
measured and reported using the economic resource measurement focus (revenues and
Jexpenses) and the accrual basis of accounting(revenue recognised when earned and
expense recognized when incurred).
ItRV 6/3/2019
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(Plan 2). 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
1 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.
[1
[]
IiItV 6/3/2019 11
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e The following is a Condensed Summary Statement of Net Position for the District
(Primary Government)at September 30,2018 and 2017:
LISummary Statement of Net Position
September 30
[.
Assets: 2018 2017
[1 Current and Other Assets $12,412,353 $12,632,056
Capital Assets 36,618,338 33,961,755
Total Assets 49,030,691 46,593,811
Deferred Outflows -Pensions 16,656,160 16,996,941
1 Liabilities:
Current Liabilities 1,905,117 3,994,787
Non-Current Liabilities 29,525,357 24,897,875
13 Total Liabilities 31,430,474 28,892,662
Net Position:
I i Deferred Inflows-Pensions 8,478,054 6,441,098
Net Investment in Capital Assets 33,522,765 31,283,401
Restricted 113,706 20,055
Unrestricted (deficit) (7,858,148) (3,046,464)
Total Net Position $25,778,323 $28,256,992
Current and other assets represent 25 percent of total assets at September 30, 2018, as
compared to 27 percent of total assets at September 30,2017. Current assets at September
30, 2018 are comprised of unrestricted cash balances of$8,024,105, restricted cash of
L-J $2,688,952, due from other governments of$560,001, other receivables of$98,769 and
other assets of$1,040,526. 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
LIof new construction.
The net investment in capital assets represent 130 percent of net assets at September 30,
2018, as compared to 111 percent at September 30, 2017. 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 $9,819,575 and unassigned fund balance of $0 represents resources
available for spending at September 30, 2018. However, the District's Board has
specifically assigned those resources to particular uses.
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LiSummary of Revenues,Expenses and Changes in Net Assets
For the Years Ended September 30,2018 and September 30,2017
:.j Revenues: 2018 2017
General Revenues
Ad Valorem Taxes $35,131,208 $30,739,575
Program Revenues
Grants 627,271 1,148,036
Charges for Services 2,625,917 2,154,236
Miscellaneous
F 1 Impact Fees 3,228,814 196,157
Investment Earnings 123,270 61,853
Gain(Loss)on Disposition of
Li Capital Assets (48,415) (67,538)
Other 483.766 519,171
Total Revenues 42,171,831 34,751,490
flExpenses:
Public Safety-Fire/Rescue Service 38.288.854 33,599,752
III Increase(Decrease) in Net Position 3,882,977 1,151,738
Net Position-Beginning of Year,
As Originally Stated 28,256,992 27,105,254
El Prior Period Adjustment -GASB No. 75 (6,361,646) -
Net Position, Beginning of Year,As
El Restated 21,895,346 27,105,254
Net Position-End of Year $25,_7$,323 $28,256,992
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The assessed value of the property within the North Naples Service Delivery Area
increased 8.1 percent for the 2017-2018 fiscal year as compared to the prior year's
assessed value and an adjustment to the millage rate from 0.95 mills to 1.000 mills,
resulting in an increase in Ad Valorem tax revenues of$3,676,473. 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. However,property
values have since increased between 2012 and 2018 and have now exceeded the previous
high point in value during FYE 9-30-07.
The Board adopted a millage rate of 1.000 mills in the North Naples Service Delivery
Area taxing unit,or$1.00 for every$1,000 of taxable property value. This millage rate
was 2.41 percent more than the rolled back rate(the taxing rate necessary to generate the
same Ad Valorem revenue as was generated during the 2016-2017 fiscal year) of.9765.
The assessed value of the property within the Big Corkscrew Island Service Delivery
Area increased 15.5 percent for the 2017-2018 fiscal year as compared to the prior year's
assessed value, resulting in an increase in Ad Valorem tax revenues of$715,160. The
property values in the Big Corkscrew Island Service Delivery Area decreased by 66
r j percent during the fiscal years 2007-2012,resulting in a decrease in Ad Valorem revenue.
I Although property values have increased between 2012 and 2018,property value in the
Big Corkscrew Island Service Delivery Area is still 42 percent lower FYE 9-30-17 than it
was in FYE 9-30-07.
The Board adopted an increased millage rate of 3.50 mills from 3.45 mills in the Big
Corkscrew Island Service Delivery Area taxing unit, or$3.50 for every$1,000 of taxable
property value. This millage rate was 13.81 percent more than the rolled back rate(the
taxing rate necessary to generate the same Ad Valorem revenue as was generated during
the 2016-2017 fiscal year) of 3.2950.
L 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 miliage 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.
Che following chart identifies the change in appraised property values in the District by
service delivery area and the millage rate maintained by the District.
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$35,000,000,000 North Naples SDA Property Value 2002 - 2018
tt_ $30,000,000,000
$25,000,000,000
r_i
j $20,000,000,000
$15,000,000,000
j $10,000,000,000
$5,000,000.000
$ k,
2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 1008 1007 2006 2005 2004 2003 2002
1
Big Corkscrew SDA Property Value 2002 - 2018
L, $3,000,000,000
Li
$1,500,000,000
E1
$2,000,000,000
51,500,000,000
$1,000,000,000
$500,000,000
1018 1017 2016?015 1014 /013 2012 2011 2010 1009 1008 /00/2006 1005 2004 1003 1001
■ URV 6/1/2019
Fund Balance—Governmental Fund Financial Statements
The Board of Fire Commissioners' directive is 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. During the 2016-2017 fiscal year,the District
utilized approximately$2.7 million of reserves to fund operating expenses due to two
significant hurricanes(Matthew and Irma)in addition to an extreme brush fire season,
among other factors. However, the District was able to increase the General Fund
balance by over$1.9 million from$8,919,984 at September 30,2017 to $10,860,101 at
September 30,2018. This includes the non-spendable amount of$1,040,526 restricted
1 for prepaid expenses, $9,819,575 of assigned reserves, and$0 in unassigned reserves.
Subsequent to the 2017-2018 fiscal year,the District received reimbursement of less than
$1 million from FEMA for many of the Hurricane Irma expenses incurred. Receipt of
these reimbursement funds will be used to replenish the District's General Fund reserves.
Assigned reserves have been established and maintained in accordance with anticipated
Lifuture needs of the District, including operating expenses for the first quarter of the fiscal
year prior to the receipt of Ad Valorem revenue, and the replacement of capital assets.
Additionally, increases in health insurance, and other personnel and operating expenses
that require funds to be set aside,or assigned,to prepare for the funding of future
expenditures. The following General Fund Assigned Reserves were approved for the
fiscal year ended September 30, 2018:
NonSpendable Fund Balance Amount
11 General Fund Prepaid Expenses $ 1,040,526
Assigned Fund Balance Amount
Operating Reserve First Quarter $ 8,555,976
Minimum Operating Reserve per Policy 1,263,599
Total Assigned Reserves $9,819,575
Unassigned Fund Balance Amount
` ' General Fund—Unassigned $ 0
L]
Total General Fund Reserves $10,860,101
0
Impact Fees
r 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. Prior year impact fee assessments were based on a structure's square footage. 1 he
new rate structure bases fees on structure usage classifications and the methodology
utiliies population rather than emergency call volume. the impact of the change in
methodology has resulted in a decrease in impact fee receipts. Total impact fee receipts
decreased 54 percent from fiscal year 2015-2016 to 2016-2017 (by $1,456,082 to
$1,218,227). Impact Fee receipts decreased by another 14 percent(by $168,427 to
$1,049,800) in 2017-2018. Total Impact Fee Fund expenses for the 17-18 fiscal year
r were$3,240,515, consisting of Collier County collection fees, permitting and engineerinp
L-j fees for vacant land, emergency traffic signal installation,annual debt service payment
I1ItV 6/3/2019 vii
for land purchased in the Big Corkscrew Service Delivery Area, and land purchased in
the North Naples service delivery area("Yarberry Lane").
Inspection Fees
Inspection fee revenue for the year ended September 30,2018 was$1,951,515
representing an increase of$325,539 or 20 percent as compared to inspection fee revenue
in the prior fiscal year(2017). 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$1,001,237 of the fund's
revenue was attributable to plan review fees. The Inspection Fee Fund had sufficient
revenue in the 2017-2018 fiscal year to support the majority of functions associated with
new construction inspections and plan reviews. However,based on receipts for the first
half of the 2018-2019 fiscal year for both inspection fees and plan review fees,there may
be less collected than the previous year. The Board held a special meeting in early 2018
discussing inspection and other prevention bureau fees. It was determined rate increases
I. were necessary(as previous rates were unchanged since 2003)and the Board adopted the
new fee structure on May 10,2018. The anticipated increase in revenue may not be seen
immediately and is contingent on the volume of new construction projects.
Budgetary Highlights
Budget versus actual comparisons are reported in the required supplementary information
other than management's discussion and analysis on pages 77 through 91 and are
reflected by taxing subunit(service delivery area).
The amendments to General Fund revenue were necessary to reflect an increase of
$122,511 in grant revenue(SAFER Grant),an increase of$90,000 (proceeds for the sale
of a 2006 Sutphen Engine),and adding$888,147 in debt proceeds associated with lease-
to-purchase agreement for one tower truck. By these amendments, General Fund revenue
was increased by$1,100,658.
The amendments to the General Fund expenditures were a result of several factors.
L Budgeted personnel expenses were increased by$21,000 to reflect the increase in
reimbursable overtime related to the hurricanes and brush fires. Amendments were also
made to operational expenses(an increase of$53,511 mostly attributable protective gear
and associated equipment)and capital expenses(an increase of$949,147)to pertaining to
protective gear, dive team,and $888,147 for the capital lease purchase of a tower truck.
Finally,the District budgeted a transfer of funds from the General Fund to the Impact Fee
Fund in the amount of$1,255,000 representing the total amount to be paid back resulting
from the purchase of the Yarberry I ane property (with GF funds).
Capital Assets
Non-depreciable capital assets include land and construction in progress. Depreciable
assets include buildings, improvements other than buildings, equipment, furniture and
vehicles.
I he following is a schedule of the District's capital assets as of September 30, 2018 and
20 17.
..° Capital Assets
1 1 RRV 6/3/2019 viii
September 30
Capital Assets 2018 2017
Land $15,712,989 $12,823,117
Construction in Progress 1,317,631 1,296,888
Total Capital Assets not Depreciated 17,030,620 14,120,005
Assets Held Under Capital Lease 3,612,747 2,720,300
Buildings 20,674,645 20,475,332
Vehicles 8,926,075 9,000,165
Office Equipment 1,222,924 1,337,546
Equipment&Machinery 3,821,928 4,008,407
Total Capital Assets Being Depreciated 38,258,319 37,541,750
Accumulated Depreciation
Assets Held Under Capital Lease (586,213) (288,626)
Buildings (7,635,683) (7,293,433)
r > Vehicles (6,933,206) (6,597,072)
Office Equipment (678,883) (686,173)
r Equipment&Machinery (2,836,616) (2,834,696)
Total Accumulated Depreciation (18,670,601) (17,700,000)
Total Capital Assets Being Depreciated,
Net 19,587,718 19,841,750
Capital Assets Net of Depreciation 36,618,338 33,961,755
Less: Capital Lease/Note Payables (3,095,573) (2,678,354)
Net Assets Invested in Capital Assets
Net of Related Debt $33,522,765 $31,283,401
Significant capital asset purchases made during the fiscal year ended September 30, 2018
include:
1. Building improvements totaling$127,520 at the Sun Century site($73,634),
Station 44 ($21,630), and Station 45 ($32,256).
2. Kawasaki Mule(side by side) totaling$12,299.
3. Ladder truck(46) totaling$892,447, which is the unit associated with the capital
lease.
4. lire and Rescue Equipment totaling$62,797 including K-12 saws, thermal
imaging cameras, llurst spreaders,and air bottles.
5. Station equipment totaling$5,308 including an ice machine and refrigerator.
6. Twenty-seven sets of replacement Bunker Gear totaling$56,412.
7. Dive equipment totaling $12,011 (1'1.S dry suits).
8. Training equipment totaling $33,885 (cargo container and Built x training prop).
9. Other equipment totaling $59,113 (server rack,Board room Ws, and MDT
computers).
10. Impact Fee Capital purchases totaling$3,140,068, consisting of:
a. Station 42 Fmergcncy Traffic Signal - $229,454
r - b. St. 14 CIP (permit extension, etc.) - $4,010
c. Yarberry I zinc property(planning and land acquisition) $2,906,604
13RV 6 3 '019 IX
For additional information on the District's capital assets, see Note E on pages 36 and 37.
Debt Administration
As of September 30, 2018,the District had long term obligations of$29,991,928, as
compared to$25,200,645 at September 30, 2017 an increase of$4,791,283 or 19 percent.
(The restated balance at September 30,2017 was $31,562,291 due to the GASB 75
conversion of the Net OPEB Obligation). The significant increase is largely due to the
increase in the restated Net OPEB obligation balance at September 20,2017(as noted
below). Additionally,the District added a capital lease for one ladder truck during the
fiscal year ended September 30,2018. That debt consists of:
1. Compensated absences(accrued vacation liability)in the amount of$2,074,495,
l-i as compared to$2,028,280 at September 30,2017.
2. Net OPEB liability of$10,173,608 as compared to $3,755,838 at September 30,
2017,representing post employment health insurance obligations pursuant to
GASB No. 75. Per the District's GASB 75 report, "the difference between the
r Net OPEB Obligation/(Asset)as of September 30, 2017 and the GASB 75
Unfunded Actuarial Accrued Liability as of the reporting period ending
September 30, 2017(based on a measurement date of September 30, 2016),
should be reported as a restatement of the beginning net position." The amended
September 30,2017 balance was restated to be$10,117,484(an increase of
$6,361,646). Therefore,the increase in Net OPEB liability during the fiscal year
ended September 30,2018 was only$56,124.
3. Capital lease for medical equipment and fire apparatus identified above in the
total amount of$2,808,073. This includes the lease to purchase agreement for 12
Lucas Chest Compressors, which was entered into in 2013 as and is a principal
only lease,with no associated interest cost. The lease to purchase agreement for
the three fire engines and one ladder truck was entered into on January 15, 2016
{ and the lease to purchase agreement for one velocity ladder truck was entered into
on May 1, 2017.
4. Note payable for the purchase of land in the amount of$287,500.
5. Pension liability(FRS) in the amount of$9,462,215 (see Note F).
6. Pension liability(IIIS)in the amount of$2,012,375 (see Note F).
7. Pension liability(Ch. 175) in the amount of$3,173,662 (see Note F).
Economic Facts and Next Year's Budget Millage Rates
1 he following factors were being taken into consideration when the fiscal year ending
September 30,2019 budget was prepared:
1. Appraised taxable property values increased by$1,583,764,364, or 5.1 percent
for tax year 2018 (FY 2019) in the North Naples service delivery arca as
compared to an increase of 8 percent in 2017. In the Big Corkscrew service
delivery arca, taxable properly values increased by $181,795,790 or 12 percent
for tax year 2018 (FY 2019) as compared to an increase of 15 percent in 2017.
?. 1 he Board adopted a millage rate of 1.000 mils in the North Naples service
LL delivery area and 3.50 mils in the Big Corkscrew service delivery area for the
BRV 6/3/2019 x
fiscal year ending September 30, 2019. The Board believes the increase in
valuation(at the same millage rate)is necessary to replace some of the reserves
used in the 16-17 year in addition to compensate for future capital funding. The
Board has expressed the desire to continue to move towards one unified taxing
rate District wide. However,the alternative addition of a non-ad valorem fire fee
assessment was not approved by local voters as of the November 2017 elections.
3. No use of General Fund reserves has been budgeted;rather,the Board has
provided direction to add over$1 million to reserves. Limited capital purchases
include various computer hardware and equipment,radios,and dive team
equipment.
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: Ben
Van Klingeren, Chief Financial Officer,North Collier Fire Control &Rescue District,
1885 Veterans Park Drive,Naples, FL 34109, 239-597-1322, e-mail:
bvanklingeren,q,northcollierfire.com.
C '
1
[1
IIRV 6/3/2019 Ci
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 102
STATEMENT OF NET POSITION
September 30,2018 Governmental
Activities
ASSETS
Current assets:
Cash and cash equivalents $ 8,024,105
Restricted cash and cash equivalents 2,688,952
Due from other governments 560,001
Other receivables 98,769
Other assets 1,040,526
Total current assets 12,412,353
Noncurrent assets:
Capital assets:
j Land 15,712,989
Construction in progress 1,317,631
r Depreciable buildings,equipment,and vehicles
(net of$18,670,601 accumulated depreciation) 19,587,718
Total noncurrent assets 36,618,338
TOTAL ASSETS
49,030,691
DEFERRED OUTFLOWS OF RESOURCES-PENSIONS 16,656,160
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 1,345,317
Retainage payable -
Contract deposits 7,500
Unearned revenue 85,729
Current portion of long-term obligations 466,571
Total current liabilities 1,905,117
Noncurrent liabilities:
Noncurrent portion of long-term obligations 29,525,357
TOTAL LIABILITIES 31,430,474
DEFERRED INFLOWS OF RESOURCES-PENSIONS 8,478,054
NET POSITION
Net investment in capital assets 33,522,765
Restricted 113,706
Unrestricted (deficit) 7,858 148
TOTAL NFT POST PION it, 25,778,323
I lie accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 6 of 102
STATEMENT OF ACTIVITIES
Year Ended September 30,2018
Governmental
Activities
EXPENSES
Governmental Activities
Public Safety-Fire Protection
Personnel services $ 31,534,077
Operating expenses 4,967,855
J Depreciation 1,683,662
Interest and fiscal charges 103,260
L TOTAL EXPENSES-GOVERNMENTAL ACTIVITIES 38,288,854
PROGRAM REVENUES
Charges for services 2,625,917
Operating grants and contributions 627,271
NET PROGRAM EXPENSES 35,035,666
GENERAL REVENUES
Ad Valorem taxes 35,131,208
Impact fees 3,228,814
Interest 123,270
Loss on disposition of capital assets (48,415)
Other 483,766
TOTAL GENERAL REVENUES 38,918,643
INCREASE IN NET POSITION 3,882,977
NET POSITION-Beginning of the year,as restated 21,895,346
NET POSITION-End of the year $ 25,778,323
I
he accompanying notes arc an integral part of this statement.
i
L_
` NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 7 of 102
BALANCE SHEET-GOVERNMENTAL FUNDS
(.,J September 30,2018
1 1Total
General Impact Fee Inspection Fee Governmental
Fund Fund Fund Funds
I i ASSETS
Cash and cash equivalents $ 8,024,105 $ - $ - $ 8,024,105
Restricted cash and cash equivalents - 1,350,731 1,338,221 2,688,952
r Due from other governments 474,400 85,601 560,001
Due from other funds 2 763,791 7,065 284,276 3,055,132
Other receivables 98,769 - - 98,769
Prepaid expenses _ 1,040,526 - - 1,040,526
C1 TOTAL ASSETS $ 12,401,591 $ 1443,397 $ 1.622497 $ 15 467485
1 LIABILITIES AND FUND BALANCE
F(� LIABILITIES
l Accounts payable and accrued expenses $ 1,345,317 $ - $ - $ 1,345,317
Retainage payable - - - -
Due to other funds 188,673 1,357,668 1,508,791 3,055,132
Contract deposits 7,500 - - 7,500
Unearned revenue - 85 729 - 85,729
TOTAL LIABILITIES 1 54 I,490 1443,397 1508,791 4,493,678
I 1
FUND BALANCE
Nonspendable I,040,526 1 040 526
Restricted 113,706 113,706
Assigned 9,819 575 • 9.819 575
Unassigned - -
i TOTAL FUND BALANCE 10 860 101 113,706 10 973 807
101A1 1 IA1311 I I ILS AND
[] IUND BAI ANCE $ 12401,591 i 1,443,397 $ 1 622 497 $ 15,467,485
[1
r
,
iiii
I he accompanying notes arc an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 8 of 102
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
September 30,2018
Amount
Total fund balance of governmental funds $ 10,973,807
Amounts reported for governmental activities in the
Statement of Net Position are different because..
Capital assets used in governmental activities are not financial resources
i and,therefore,are not reported in the governmental funds.
Capital assets not being depreciated:
Li i Land 15,712,989
Construction in progress 1,317,631
17,030,620
5
Governmental capital assets being depreciated:
Building,equipment and vehicles 38,258,319
Less accumulated depreciation (18,670,601)
19,587,718
Deferred outflows and deferred inflows related to pensions are applied to
future periods and,therefore,are not reported in the governmental funds.
Deferred outflows-OPEB Obligation 409,664
Deferred inflows-OPEB Obligation (542,609)
Deferred outflows-FRS/HIS 5,781,937
Deferred inflows-FRS/HIS (4,253,378)
Deferred outflows-FPT 10,464,559
Deferred inflows-FPT (3,682,067)
8,178,106
Long-term obligations are not due and payable in the current period
and,therefore,are not reported in the governmental funds.
fl Net OPEB liability (10,173,608)
Net pension liability-FRS (9,462,215)
Net pension liability-HIS (2,012,375)
Net pension liability-FPT (3,173,662)
Capital leases (2,808,073)
Note payable (287,500)
Compensated absences (2,074,495)
(29,991,928)
Flimination of interfund amounts:
Due to other funds (3,055,132)
Due from other funds 3,055,_132
1 otal net position of governmental activities $ 25,778,323
{ I he accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 102
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-GOVERNMENTAL FUNDS
Year Ended September 30,2018
Total
General Impact Fee Inspection Fee Governmental
Fund Fund Fund Funds
REVENUES
Ad Valorem taxes $ 35,131,208 $ - $ - $ 35,131,208
Intergovernmental revenue:
State firefighter supplement 73,760 - 73,760
Federal grants 498,648 - - 498,648
Other intergovernmental 54,863 • - 54,863
Charges for services:
_I Inspection fees and other 678,234 - 946,446 1,624,680
Plan review fees - - 1,001,237 1,001,237
j Impact fees - 3,228,814 - 3,228,814
t{ Al M scellaneous:
Interest 107,737 11,701 3,832 123,270
Other 483,766 - - 483,766
f ' TOTAL REVENUES 37,028,216 3,240,515 1,951,515 42,220,246
EXPENDITURES
:4 Current
--- Public safety
Personnel services 29,390,961 - 1,752,961 31,143,922
Operating expenditures 4,832,943 30,009 104,903 4,967,855
Capital outlay 1,263,191 3,140,069 - 4,403,260
Debt service:
Principal reduction 413,428 57,500 - 470.928
Interest and fiscal charges 90,323 12,937 - 103,260
TOTAL EXPENDITURES 35.990 846 3,240,515 1,857,864 41,089,225
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 1 037 37093,651 1,131,021
0 OTHER FINANCING SOURCES AND USES
Proceeds from capital lease 888,147 888,147
Proceeds from disposition of capital assets 14 600 •
14,600
rransfcrs in
I ransfcrs out
TOTAL OTI•IER FINANCING SOURCES
AND USES 902 747 902,747
EXCESS OF REVENUES AND OTI.IER
r FINANCING SOURCES OVER(UNDER)
EXPENDITURES AND OTHER
FINANCING USES I.940.117 93,651 2 033 768
I UND 13AI ANCL 13cgonng of the year 8 919,984 20 055 8 940 039
I UND 13A1 ANCE-End of the year $ 10 860 101 $ $ 113706 $ 10 973 807
t. '' I he accompanying notes arc an integral part of this statement.
1
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 10 of 102
r E RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE
OF GOVERNMENTAL FUNDS TO THE STATEMENT
OF ACTIVITIES
Year Ended September 30,2018
f. 1 Amount
Net change(revenues and other financing sources over(under)expenditures
and other financing uses)in fund balance-total governmental funds $ 2,033,768
The increase(change)in net position reported for governmental activities
in the Statement of Activities is different because:
L 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 4,403,260
Less: proceeds on disposition of capital assets (14,600)
Less: loss on disposition of capital assets (48,415)
Less:current year depreciation (1,683,662)
111 2,656,583
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 (888,147)
(888,147)
Repayments(principal retirement):
Plus:capital leases 413,428
Plus: note payable 57,500
470,928
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 ?,015,369
(Increase)decrease in net pension liability HIS 258,015
(Increase)decrease in net pension liability-IPI (183,463)
Increase(decrease)in deferred outflows (340,781)
(Increase)decrease in deferred inflows ( ,036,956)
(Increase)decrease in Net OPEB liability (56,124)
(Increase)decrease in compensated absences (46,215)
(390,155)
Increase in net position of governmental activities $ 3,882,977
1 he accompanying notes arc an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 12 of 102
STATEMENT OF CHANGES IN FIDUCIARY
NET POSITION-FIDUCIARY FUND
Year Ended September 30,2018
Firefighters'
Pension
Fund
ADDITIONS
Contributions:
Employer $ 2,990,030
Plan members 412,640
L Buybacks 40,172
State of Florida, insurance premiums 1,741,988
Total contributions 5..184,830
E1 Investment income:
Net appreciation(depreciation) including realized gains/losses 4,247,295
Interest and dividends 2,537,440
6,784,735
Less: investment expenses (298,403)
Net investment income(loss) 6,486,332
Other income -
TOTAL ADDITIONS 11,671,162
DEDUCTIONS
Benefits paid 628,263
DROP distributions 746,668
Administrative expenses 115,357
TOTAL DEDUCTIONS 1,490,288
NET 1NCREASF IN NET POSITION 10,180,874
NET POSITION-BEGINNING 70,747,813
NET POSITION-ENDING $ 80,928,687
I he accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
l ) 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
L
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
r 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 South Western
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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
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.
ii Reporting Entity
1 The District adheres to Governmental Accounting Standards Board(GASB)
Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by
t I 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.c., 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
. f 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 locus 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2018
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,
L "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.
r-1 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
j goods, services, or privileges provided by a given function,and 2) grants and
L
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). Fsscntially, 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
L1 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
�l 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 arc combined into a single column on the governmental fund
financial statements.
Separate financial statements arc provided for governmental funds. Major individual
governmental funds arc reported in separate columns on the fund financial statements.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
I 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.
Fl
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 arc
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.
Li
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 arc recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes arc 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 arc 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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.
L
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
r 1 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:
fhe 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED
Major Funds, continued
L
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.
rij
Non-Major Fund
[.] The District reports the following non-major fund:
r 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
C� 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 21 of 102
NOTES TO THE FINANCIAL STATEMENTS
t September 30,2018
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)
El 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:
I
1. During the summer of each year,the District Fire Chief submits to the Board of
r 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.
L J 4. Budget amounts, as shown in these basic financial statements, are as originally
adopted or as amended by the Board of Commissioners.
0
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.
v. d
7. Appropriations lapse at year-end.
[: 7
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 30,2018. Budgeted revenues and expenditures were
increased(decreased)as follows:
i1 Amount
General fund-NN SDA $ (30,547)
L General fund- BCI SDA (486,161)
L Total General Fund $ (516,708)
( 1
Impact fee fund $ 2,642,078
Inspection fee fund $ -
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 arc 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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.
L] 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, 2018,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.
I
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 delivery areas on the same line item based
upon a Board approved cost allocation plan. For the year ended September 30,
2018,the costs were allocated on a percentage basis of 84.82°o to NN SDA and
15.18°'o to BCI SDA.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
L 1 government-wide Statement of Net Position.
r , 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
J 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 arc
properly applicable to another fund are recorded as expenditures/expenses in the
reimbursing finds 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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,
Ej (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 and OPEB are discussed in a subsequent note.
In addition to liabilities, the statement of net position reports a separate section for
deferred inflows of resources. fills 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 arc
provided with pensions and OPI?13 through these plans except earnings which arc
amortiiecl over five to seven years.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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.
L Subsequent Events
- Subsequent events have been evaluated through May 20, 2019, which is the date
I -i the basic financial statements were available to be issued.
NOTE B - CASH AND CASH EQUIVALENTS
4 Cash and cash equivalents of the primary government(exclusive of the Firefighters'
Pension Trust Fund)were$10,713,057,of which $2,688,952 was restricted at
September 30,2018. Total cash and cash equivalents included cash on hand of
$1,300 at September 30, 2018.
Deposits
The District's deposit policy (exclusive of the Firefighters' Pension Fund) 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 30,2018.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 27 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE B - CASH AND CASH EQUIVALENTS,CONTINUED
Deposits, continued
Deposits consist of the following at September 30,2018:
District Carrying Bank
Amount Balance
Unrestricted
General Fund
Depository Accounts $ 5,937,060 $ 6,159,628
Money Market 2,085,745 2,085,745
Total General Fund $ 8,022,805 $ 8,245,373
Restricted
General Fund
Depository Accounts $ - $
Special Revenue Funds
Impact Fee
Depository Accounts 1,350,731 1,370,303
Inspection Fee
Depository Accounts 1,338,221 1,338,221
Total Special Revenue Funds 2,688,952 2,708,524
Total Restricted Funds $ 2,688,952 $ 2,708,524
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.
Li 1 he District held no other types of deposits during the year ended September 30,
2018.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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.
I.
The Inspection Fee account is used to account for inspection fees collected for
1 1 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
Li
$81,053,782(including$1,492,018 in cash and cash equivalents, $3,712,946 in
mutual funds, $56,278,449 in equity securities, $13,184,659 in fixed income
securities, and $6,385,710 in real estate) at September 30, 2018. Such investments
Li 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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, 2018. 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°0 (at market)of the Plan's total asset value.
The equity position in any one company shall not exceed .5°0 of the Plan's total assets
at market. Investments in stock of foreign companies shall be limited to 35°0 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 frcasuiy and
Agency obligations, the debt portion of the Plan shall contain no more than 10°0 of a
given issuer irrespective of the number of differing issues.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2018
NOTE C- INVESTMENTS, CONTINUED
Firefighters' Pension Plan -Investments, continued
Investment Authorization, continued:
The current target allocation at September 30, 2018,of these investments at market is as
follows:
Investment Long Term
Authorized Policy-Target Expected Real
Investments Allocation 4a Rate Return%
Li Domestic Equities 35-55°0 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%
al 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
J type and institution, and limits holdings in any one type of investment with any one
issuer with various durations of maturities.
Eli 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, 2018:
Investment Maturities tin years)
ElInvestment Type Fair Value Less than I I to 5 6 to 10 More than 10
Corporate bonds $ 7,379,442 $ - $ 3,020,354 $ 2 883,504 $ 1,475,584
Mutual funds 3,712,946 - 2,640,276 786,773 285,897
U.S. Agencies 4,790,403 180,579 170,508 4,439,316
U.S.1 rcasuries 1014 814 - 34,298 154,718 825,798
$ 16,897 605 $ 180,579 $ 5,694,928 $ 3,995,503 $ 7,026,595
Credit Risk:
Credit risk is the risk that a security or a portfolio will lose some or all of its value clue
to a real or perceived change in the ability of the issuer to repay its debt. The Plan's
investment policy utiliics portfolio diversification in an effort to mitigate this risk.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 30,2018,if applicable:
Fair Percentage of
kil Value Portfolio
Quality rating of credit risk debt securities
A $ 621,176 0.78 °o
El Al 281,260 0.35
A2 846,041 1.06
A3 1,631,707 2.05
Ei AA 235,030 0.30
Aa2 249,411 0.31
Aa3 140,817 0.18
dui
I. AAA 2,138,995 2.69
B 383,919 0.48
Bal 131,724 0.17
Baal 1,920,365 2.41
4 gam 1,510,475 1.90
Baa3 602,361 0.76
BB 626,745 0.79
BBB 1,254,976 1.58
Unrated government securities 4,322,603 5.43
ElTotal credit risk debt securities $ 16,897,605 21.24 °.
* Obligations of the U.S. government or obligations explicitly guaranteed by the U.S.
lI government are not considered to have credit risk and do not have purchase limitations.
Concentration of Credit Risk:
1 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.
LiThere were no individual equity investments that represented 5°0 or more of Plan net
position at September 30, 2018. 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°0 or more of Plan net position at September 30,
. 2018.
LI 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 arc in the
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE C- INVESTMENTS, CONTINUED
Firefighters' 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.
r ? Foreign Currency Risk:
I
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 primary exposure to foreign currency risk is derived from its
direct investments in international equity and fixed income mutual funds. The Plan
owns shares in international equity and international bond funds. In accordance with
the Plan's investment policy statement,the US equity and fixed income separate
account managers may invest in individual securities designated as foreign as part of
the normal course of the investment process. The individual foreign securities may be
American Depository Receipts,or NYSE common stock, both transacted in US
dollars,or foreign ordinary securities transacted in foreign currency. 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,
2018, the Plan's exposure to foreign currency risk related to foreign equity funds and
bonds is as follows:
L1
J Fair Percentage of
Value Portfolio
L ) international equity funds and fixed income(bonds) $ 17,831,832 °
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 fail 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:
ElLevel 1 - Inputs to the valuation methodology are based upon quoted prices for
identical assets in active markets.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE C- INVESTMENTS, CONTINUED
Firefighters' Pension Plan -Investments,continued
Fair Value Measurements, continued:
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
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 maximi/ing 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 maximises 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.
'a;
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE C - INVESTMENTS, CONTINUED
Firefighters' 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 30,2018:
Fair Value Measurements Win
Quoted
Prices in Significant
Active Other Significant
Markets for Observable Unobservable
Identical Assets Inputs Inputs
Total Level I Level 2) Level 3
LIInvestments by fair value level
Equity securities:
Common stocks $ 24,123,954 $ 24,123,954 $ - $ -
Foreign stocks 1,447,274 1,447,274 - -
Domestic equity mutual funds 19,148,387 - 19,148.387 -
International equity mutual funds 11,413,448 - 11,413,448
REIT 145,386 - 145 386 -
Total equity securities 56 278,449 25,571,228 30,707 221
ti Debt securities
U.S.treasury securities 1014,814 1,014,814 -
U.S.agency securities 4,790,403 - 4,790,403
II Corporate bonds 7 379,442 - 7,379,442
Fixed income mutual funds 3,712,946 - 3,712 946
Total debt securities 16,897,605 1,014,814 15,882,791
1 Total investments by fair value 73,176,054 $ 26,586,042 $ 46 590 012 $
Investments measured al the net asset value AV
F 1Real estate fund 6 385 710
Money market funds(exempt) 1,492 018
total mve,lmenls $ 81 053,782
* A,required by GAAP,certain investments have not been classified in the fair value hierarchy I he lair
io
value amounts presented in the previous table are intended to penult reconciliation for the lair value
bierar..by to the total investment line item in the Statement of fiduciary Net Position
ti
'''
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
1 Redemption
Unfunded Frequency(tf Redempt,on
Fair Value Commitments Current! El ible Notice Period
Real estate fund $ 6,385 710 $ - 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 30,2018, are as follows:
Due from Due to
Fund Other Funds Other Funds
f General Fund
i 1 Impact Fcc Fund $ 1,255,000 $ 7,065
Inspection Fee 1 and 1 508,791 181 608
lotal General I•und 2 763 791 188,673
I_ l Special Revenue I.unds
Impact lee 1 and
General 1 and 7,065 1 255,000
Inspection Ice fund 102,668
In,pection lee I and
General I and 181,608 1508 791
Impact 1 ee Fund 102 668
I otal Special Revenue I unds 291 341 2 866 459
I Dail $ 3 055 132 $ 3 055 132
Interfund receivables and payables were eliminated for presentation purposes in the
Statement of Net Position at September 30, 2018.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE E - CAPITAL ASSETS ACTIVITY
The following is a summary of changes in capital assets activity for the year ended
September 30, 2018:
Balance Balance
October 1 Increases/ Decreases/ Adjustments/ September 30
2017 Additions Retirements Reclassifications 2018
Capital Assets Not
Being Depreciated:
t
Land $ 12,823,117 $2,889,872 $ - $ - $ 15,712,989
Construction in progress 1,296,888 20,743 - - 1,317,631
Total Capital Assets Not
Being Depreciated 14,120,005 2,910,615 - 17,030,620
Capital Assets
Being Depreciated:
Assets held under capital lease 2,720,300 892,447 - - 3,612,747
Buildings 20,475,332 356,974 (157,661) - 20,674,645
Office equipment 1,337,546 65,820 (180,442) - 1,222,924
Vehicles 9,000,165 12,299 (86,389) - 8,926,075
Equipment&machinery 4,008,407 165,105 351,584 - 3,821,928
Total Capital Assets
Being Depreciated 37,541,750 1,492,645 776,076 - 38,258,319
Less Accumulated
El Depreciation:
Assets held under capital lease (288,626) (297,587) - (586,213)
Buildings (7,293,433) (451,882) 112,632 - (7,635,683)
Office equipment (686,173) (160,499) 167,789 - (678,883)
Vehicles (6,597,072) (422,523) 86,389 - (6,933,206)
l quipmcnt&machinery 2,834,696 348,171 346,251 - 2,836,616
fotal Accumulated Depreciation 17,700,000 1,683,662 713,061 18 670,601
rota)Capital Assets being
Depreciated,Net 19,841,750 191,017 63,015 - 19,587 718
Capital Assets,Net $ 33,961,755 $2,719,598 $ 63,015 $ - 36,618,338
Related Debt 3.095 573
Net rove dmcnt in capital astiet' $33 522,765
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE E- CAPITAL ASSETS ACTIVITY, CONTINUED
Depreciation expense was charged to the following functions during the year ended
September 30,2018:
Amount
General Government
Total Depreciation Expense $1,683 662
t.
(,
The District has capital assets held under capital leases with a total cost of
4
$3,612,747 at September 30, 2018. The capital assets held under capital lease has
L i accumulated depreciation of$586,213 and depreciation expense of$297,587
for the year ended September 30,2018.
NOTE F- LONG-TERM OBLIGATIONS
The following is a summary of changes in long-term obligations for the year ended
September 30,2018:
Balance Retirements Balance Amounts
October 1 And September 30 Due Within
2017 Additions Adjustments 2018 One Year
Net OPEB Liability $10,117,484 $ 56,124 $ - $10,173,608 $
Net Pension Liability-FRS 11,477,584 - (2,015,369) 9,462,215
Net Pension Liability-HIS 2,270,390 - (258,015) 2,012,375
Net Pension Liability-PPT 2,990,199 183,463 - 3,173,662LI -
Capital Leases 2,333,354 888,147 (413,428) 2,808,073 409,071
Note Payable- Land 345,000 - (57,500) 287,500 57,500
Compensated Absences 2,028,280 46,215 - 2,074,495 -
$31,562,291 $ 1,173,949 $ 2,744,312 $29,991,928 $ 466,571
The following is a summary of long-term obligations at September 30, 2018:
Amount
Net OPI B liability actuarially determined GASB No 75 $ 10,173 608
Net pension liability I RS pension plan 1 lu amount as actuarially determined
throe,It ailetilation based upon the audited financed statements of the Florida IRS
Plan 9 162 215
Net pen roil liability I IIS plan I his amount is notarially determined throu•,'h
calculation b.tscd upon the audited!manual statements of the I loriha I ItS Plan 2 012 375
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 38 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE F - LONG-TERM OBLIGATIONS,CONTINUED
Amount
Net pension liability-Firefi liters'Pension Trust(FPT)plan. This
amount is actuarially determined through calculation based upon the audited
financial statements of the FPT Plan. 3,173,662
$160,240 capital lease payable dated April 19,2013,for eleven(I 1)chest
compression systems to financial institution over a 60 month period
i ending March 2018 in equal payments of$2,671 at a zero stated interest
rate.Paid in full during fiscal year ended September 30,2018. -
$2,546,268 capital lease payable dated January 15,2016 for one(I)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
r"' interest at 2.822%. 2,088,084
$888,147 capital lease payable beginning May I,2018 for a ladder truck
payable to a financial institution in five(5)annual payments of$193,000
ending May 1,2022 including interest at 2.74°c. 719,989
$1,150,000 note payable dated January 1 2003 to SunTrust Bank over a
20 year period ending November I,2022 in equal annual principal
payments on November I of$57,500 plus accrued interest at a rate of
3.75°0.The note is collateralized by Impact fees 287,500
Non current portion of compensated absences. Employees of the District
r are entitled to paid vacation based on length of service and job
classification.(Combined SDA) 2,074,495
s,w 29,991,928
Less Current Portion 466,571
Long-Terni Portion $ 29 525,357
Li
The annual debt service requirements at September 30, 2018, were as follows:
Capital Capital Note
Years Coding Leases Payable 1 eases Payable Payable Total
September 30 Princi al I Principal(I) Princi:al 2. Princi,.al
2019 $ 236,305 $ 172,766 $ 57,500 $ 466,571
2020 242,974 177,500 57,500 477,974
2021 249,831 182,363 57,500 489,694
2022
256,881 187,360 57,500 501,741
2023 264,131 57,50() 321,631
2024-2026 837,962 - 837,962
El $ 2,088,081 $ 719 989 $ 287 500 3,095,573
Net OPP13 I lability 10,173,608
Net Pension 1 lability-IRS 9,462,215
Net Pension I iability-Ills 2,012,375
Net Pension 1 lability 11''1' 3,173,662
Compensated absences 2,074 495
I ural lone term debt $ 29 991,928
(1)Debt service paid through General 1 and
(2)Debt service paid through Impact I cc I and
Interest expense for the year ended September 30,2018,was$103,260 including interest espciise
on capital lease of$89,749.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 39 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
t. 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 IV, Florida Statutes; Chapter 238,
Florida Statutes; and Florida Retirement System Rules, Chapter 60S, Florida
Administrative Code; wherein eligibility, contributions, and benefits arc 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
1IUS 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 30,2018, is
available from the Florida Department of Management Services' Website
(www.dms.myllorida.com).
NOTENORTHG COLLIERRETIREMENT FIRE CONTROLPLANSCONTINUAND RESCUE ED DISTRICT Page 40 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
- ,
General Information about the Florida Retirement System,continued
The District's total FRS and HIS pension expense was $1,230,330 for the year
ended September 30, 2018 and is recorded in the government-wide financial
statements. Total District actual FRS and HIS retirement contribution expenditures
were$981,054, $1,203,482 and$1,186,368 for the years ended September 30,
' 2018,2017 and 2016,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
Limeet 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, arc
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 I IIS) may include up to 4 years of credit for military service toward
creditable service. 1 he 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. 1 he 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 A'e'Years of Service °oValue
Regular Class and elected members initially enrolled before July I,2011
EIRetirement 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 I, 1970 through September 30, 1974 2.00
Service on or after October I, 1974 3.00
Senior Management Service Class '.00
Elected Officers'Class 3.00
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
j 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, 2018 were as follows:
Percent of Gross Sala
Class Employee Employer(1) Em,lo.er 3
Florida Retirement System,Regular 3.00 7.92 8 26
Florida Retirement System,Senior Management Service 3 00 22.71 24 06
Florida Retirement System,Special Risk 3 00 23.27 24 50
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0 00 13.26 14 03
Florida Retirement System,Reemployed Retiree (2) N/A N A
Florida Retirement System,Elected Official 3 00 45.50 48 70
Notes:
(I) 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
1 the Investment Plan. Rates for 7/1/17-6/30/18.
(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 7/1/18 6/30/19.
As defined by the Plan.
El
{3,
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 30,2018, the District reported an FRS pension liability of$9,462,215
for its proportionate share of the net pension liability. The net pension liability was
measured as of September 30,2018, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of July 1, 2018.
The District's proportionate share of the net pension liability was based on the
District's 2017-18 fiscal year contributions relative to the total 2017-18 fiscal year
contributions of all participating members. At September 30,2018,the District's
proportionate share was .031414516 percent, which was a decrease of.007388205
percent from its proportionate share measure as of September 30, 2017.
For the year ended September 30, 2018,the District recognized FRS pension
expense of$1,148,147. In addition,the District reported deferred outflows of
resources and deferred inflows of resources related to the pension from the following
sources:
Deferred Outflows Deferred Inflows
Description of Resources of Resources
Differences between expected
and actual experience $ 801,592 $ 29,094
Change of assumptions 3,091,789
Net difference between projected and
actual earnings on pension plan investments - 731,071
Changes in proportion and differences between
ElDistrict contributions and proportionate share
of contributions 1,035,736 2,713,521
District contributions subsequent to the
1111 measurement date 219,914
Total $ 5,149,031 $ 3,473,686
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLANS, CONTINUED
FRS Pension Plan,continued
The deferred outflows of resources related to the FRS pension, totaling$219,914
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 30,2019. Other amounts reported as deferred outflows of resources
I M 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
t September 30 Amount
2019 $ 222,140
2020 222,140
2021 222,140
2022 222,141
2023 404,908
Thereafter 161,962
Total $ 1,455,431
Actuarial Assumptions. The total pension liability in the July 1,2018, 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 7.00 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, 2018, 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
t ' 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
I j geometric real rates of return for each major asset class are summarized in the
following table:
t'`
Compound
Annual Annual
i
Target Arithmetic (Geometric) Standard
Asset Class Allocation(1 r Return Return Deviation
Cash i°o 2.9°o 2.9°o 1.8°0
Fixed income 18°o 4.4°0 4.3°0 4.0°0
Global equity 54°o 7.6°o 6.3°0 17.0°0
Real estate(property) 11°0 6.6°0 6.0°0 11.3°0
Private equity 10°0 10.7°0 7.8°o 26.5°0
Strategic investments 6°'0 6.0°0 5.70. 8.6°0
Total 100°0
Assumed inflation-Mean 2.6°0 1.9°0
(I)As outlined in the Plan's investment policy
Discount Rate. The discount rate used to measure the total pension liability
was 7.00 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
7.00 percent which was reduced from 7.10%, as well as what the District's
L # proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (6.00 percent) or 1-percentage-point
1 higher(8.00 percent)than the current rate:
1°0 Current 1%
; Decrease Discount Rate Increase
(6.00%) (7.00% (8.00%)
District's proportionate share of
the net pension liability $ 17 268,939 $ 9,462215 $ 2,978,269
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, 2018.
The FRS CAFR and actuarial reports may also be obtained by contacting the
Division of Retirement at:
Department of Management Services
ri 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)florida.com/workforce_operationsketirement/publications
Payables to the Pension Plan. At September 30, 2018, 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
1 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.
I
Benefits Provided. For the year ended September 30, 2018, 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, 2018,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. IIIS Plan benefits are not guaranteed and
Elare 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, 2018,the District reported a IIIS liability of$2,012,375 for its proportionate
share of the net IIIS Plan's net pension liability. The net pension liability was
measured as of September 30, 2018, and the total pension liability was used to
calculate the net pension liability determined by an actuarial valuation as of July
1, 2018. The District's proportionate share of the net IIIS liability was based on the
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2018
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan,continued
District's 2017-18 fiscal year contributions relative to the total 2017-18 fiscal year
contributions of all participating members. At September 30,2018,the District's
proportionate share was .019013168 percent, which was a decrease of.002220391
percent from its proportionate share measured as of September 30,2017.
For the fiscal year ended September 30, 2018,the District recognized HIS expense
of$86,123. In addition, the District reported deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
Descry:tion of Resources of Resources
Differences between expected
and actual experience $ 30,809 $ 3,419
Change of assumptions 223,800 212,765
Net difference between projected and actual
earnings on HIS pension plan investments 1,215 -
Changes in proportion and differences between
District 1-IIS contributions and proportionate
share of HIS contributions 353,362 563,508
District contributions subsequent to the
Elmeasurement date 23,720 -
Total $ 632,906 $ 779 692
The deferred outflows of resources related to HIS, totaling$23,720, 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, 2019. 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
2019 $ (27,392)
2020 (27,392)
2021 (27,392)
H 2022 (27,393)
2023 (27,696)
ThereaRei 33.241
Total $ (170,506)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLANS, CONTINUED
HIS Plan,continued
Actuarial Assumptions. The total pension liability in the July 1, 2018, 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 3.87 percent
I 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 3.58 %to 3.87%. 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
3.87 percent, as well as what the District's proportionate share of the net I IIS
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (2.87 percent) or 1-percentage-point higher(4.87 percent) than the current
rate:
In0 Current 100
Decrease Discount Rate increase
.87°0 3.87"0 4.87°0
District's proportionate share of
the net 1115 liability $ 2 291,977 $ 2,012,375 i 1,779,310
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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, 2018.
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
httt>//www dms.mflorida.com/workforceoperations/retirement/publications
Payables to the Pension Plan. At September 30, 2018, the District reported a
payable of$0 for the outstanding amount of contributions to the I IIS plan.
1 ]
FRS -Defined Contribution Pension Plan
L
i ] 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 arc established and may be amended by the
Florida Legislature. The Investment Plan is funded with the same employer and
El 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 2017-18 fiscal year were as follows:
Percent of Gross Salary 4
Class Em to ee Em:to er t l Em tlok er(3
Florida Retirement System,Regular 3.00 7.92 8.26
Florida Retirement System Senior Management Service 3.00 22.71 24 06
Florida Retirement System,Special Risk 3.00 23 27 24.50
Deferred Retirement Option Program-Applicable
to Members from All of the Above Classes 0.00 13.26 14.03
Florida Retirement System,Reemployed Retiree (2) N/A N/A
Florida Retirement System,Elected Official 3.00 45.50 48.70
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 7/1/17-6/30/18.
(2) Contribution rates arc 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 7/1/18-6/30/19.
0
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, 2018, 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
L 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 $85,015 for the year ended September 30, 2018.
Payables to the Investment Plan. At September 30, 2018, the District reported a
payable of$0 for the outstanding amount of contributions to the Plan.
El
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 requited to contribute 3°0
(similar to FRS) of compensation (an increase from .5°o of compensation) per
LI Resolution 11-031.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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, 2018,2017, and 2016 there were employee
contributions in the amount of$412,640, $416,608, and $353,357,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).
Li 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%(I%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°0 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2018
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
El (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
El 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, 2018 for the year ended September
30, 2018, the District's contribution (District only) requirement was 19%of the
J actuarially determined covered payroll. Actual District contributions to the Plan for
the years ended September 30, 2018, 2017 and 2016, were$2,990,030,
$2,927,841,and $1,750,382 respectively. The State contributions for the years
1
L ended September 30, 2018 and 2017 were$1,741,988 and $1,369,167,
respectively. Employees contributed (3°o)$412,640 to the Plan for the year ended
September 30, 2018. At September 30, 2018, $80,928,687 the Plan's total net
position was restricted for retiree benefits.
El Payables to the Pension Plan. At September 30, 2018, the District reported a
payable of$0 for the outstanding amount of contributions payable to the
pension plan.
Pension Benefits lactive 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
L. 1 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).
[ J 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°0 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. [he 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2018
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
I 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
f 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
L J 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 arc reported at cost, which
Liapproximates market value.
Actuarial Present Value of Accumulated Plan Benefits - Accumulated plan
benefits arc those future periodic payments, including lump-sum distributions, that
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
J 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
ra
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
f J 7.5°0(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°0 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, 2018 can be
obtained by writing to the District at 1885 Veterans Park Drive,Naples, Florida
34109-0492, or by calling(239) 597-3222.
El
I he 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLANS,CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
Firefighters'Pension
Trust Fund-Plan 2
Year established and governing authority District Resolution 96-004(July 11, 1996)
I Governing body Board of Trustees of Plan
Determination of contribution requirements: Actuarially determined
Li
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: Employer
Period required to vest 6 years
i Annual salary increase Graduated Scale based on Credited Service(see below)
lw
Post retirement benefit increase Cost of living increase of 3°0 each year
Eligibility for distribution Earlier of 55 with 6 years of credited service or
(Normal retirement) 25 years credited service regardless of age
[ Provisions for:
Disability benefits Yes
f Death benefits Yes
Early retirement Yes
Assumed inflation 2.5
Actuarial assumption method clianres since
prior valuation:
Actuarial Cost Method I ntry Age Normal. Prior valuations utilized Frozen
Entry Age method
Net of-fees Investment Return 7.50°0
Annual Salary Increase flat 6" per year to graduated scale(9°0 per year
for first 10 years&3"0 per year for 10 I years)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 30,2018 were as follows:
Amount
Total pension liability $ 84,102,348
Plan fiduciary net position (80,928,686)
1
L District's net pension liability $ 3,173,662
Plan fiduciary net position as a percentage of the
total pension liability 96.23%
The total pension liability was determined by an actuarial valuation as of September 30,
2018 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.
t Mortality rates were based on the RP-2000 Combined Healthy Mortality Table.
Disabled lives are set forward two years for females and set back four years for males.
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
1 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.
C 1 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-fern
Target Actual Expected Real
Asset Class Allocation Allocation Rate of Return*
Domestic equities 45°0 53.39°0 7.5°0
International equities 1500 15.87°0 8.5°0
Fixed income 150. 14.62°0 2.5°0
International fixed income 5°0 6.23°0 3.50o
Global Tactical Asset Allocation 10°0 0.00°0 3.5°°
Real estate 10°0 8.06°0 4.50
Cash and cash equivalents mininal 1.83°0 not available
annual arithmetic return 100°o 10000
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 60 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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
f 1-percentage-point higher(8.5 percent) than the current rate:
1% Current too
Decrease Discount Rate Increase
6.5% 7.5%
Net pension liability(asset) $ 16,847,931 $ 3,173,662 $ 7,880,021
Deferred inflows/Outflows of Resources Related to Pensions
On September 30, 2018, 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 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 4,253,449 $ 829,314
Change of assumptions 1,479,092 1,859,039
Net difference between projected and actual
earnings on plan investments - 993,714
Contributions subsequent to the measurement date 4,732,018
# 10,464,559 $ 3,682,067
The deferred outflows of resources related to the pension,resulting from District
Ti
contributions subsequent to the measurement date, will be recognized as a
reduction on the net pension liability in the fiscal year ended September 30, 2018.
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:
Li Years Ending
September 30 Amount
2019 $ 381,991
2020 486,206
2021 (378,818)
2022 (416,926)
2023 266,542
Thereafter 1,71 1,479
Total $ 2,050,474
Memberships of the Plan consisted of the following at October 1, 2018:
Firefighters'Pension
I Fund-Plan 2
Active plan members 159
Inactive plan members or beneficiaries currently receiving benefits 16
Inactive plan members entitled to but not yet recciviu, benefits 11
Total 186
Number of participating employers 1
Number of participating state agencies 1
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G - RETIREMENT PLANS,CONTINUED
Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
The following is a schedule of changes in net pension liability for the fiscal year ended
September 30,2018:
Increase(Decrease)
Total Pension Plan Fiduciary Net Pension
ii Liability Net Position Liability(Asset)
Balances at September 30,2017 $ 73,738,012 $ 70,747,813 $ 2,990,199
Changes for the fiscal year:
Service cost 4,341,382 - 4,341,382
Interest 5,804,395 - 5,804,395
Differences between expected and
actual experience 1,553,317 - 1,553,317
Changes of assumptions - - -
OChange in excess state money - - -
Contributions-Employer - 2,990,030 (2,990,030)
Contributions-State - 1,741,988 (1,741,988)
Contributions-Employee - 412,571 (412,571)
Contributions-Buy Back 40,172 40,172 Net investment income 6,480,375 (6,480,375)
Benefit payments, including refunds
of employee contributions (1,374,930) (1,374,930) -
Administrative expense - 109,333 109,333
Net changes 10,364,336 10,180,873 183,463
Balances at September 30,2018 $ 84,102,348 $ 80,928,686 $ 3,173,662
Annual Pension Cost,Net Pension Obligation and Reserves
LI
Current year annual pension costs for the Firefighters' Pension Trust Fund arc shown
in the trend information provided. The Firefighters' Pension Trust Fund had a net
ii unfunded actuarial accrued liability at October 1, 2018 of$3,l 73,662.
EiThe 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
,g;
investments at year end.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
LI,, NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund,
continued
Trend Information
Firefi<.>,hters'Pension Trust Fund
Total(1)
Required Actual Contributions Net
Annual District State State(2) Pension
Fiscal Pension Required Required Frozen Actual Percentage Obligation
Year Contribution Contribution Contribution Contribution Contribution Contributed T)
2018 $ 4,732,018 $ 2,990,030 $ 1,741,988 $1,746,716 $ 4,732,018 100°o
2017 $ 4,302,560 $ 2,933,393 $ 1,369,167 $1,746,716 $ 4,302,560 100°o
2016 $ 3,146,984 $ 1,735,437 $ 1,411,547 $1,746,716 $ 3,146,984 100°0 -
2015 $ 2,594,733 $ 1,107,133 $ 1,487,600 $1,746,716 $ 2,594,733 100% -
2014 $ 2,896,024 $ 1,518,926 $ 1,377,098 $1,746,716 $ 2,896,024 100% -
2013 $ 3,386,733 $ 2,127,828 $ 1,314,064 $1,746,716 $ 3,441,892 102% -
2012 $ 3,283,811 $ 2,166,246 $ 1,214,214 $1,746,716 $ 3,380,454 103% -
2011 $ 3,473,598 $ 2,333,799 $ 1,139,799 $1,746,716 $ 3,626,125 104% -
2010 $ 3,190,997 $ 2,170,443 $ 1,020,554 $1,746,716 $ 3,200,901 100% -
2009 $ 2,796,158 $ 1,756,228 $ 1,039,931 $1,746,716 $ 3,079,738 110% -
2008 $ 2,211,933 $ 1,009,715 $ 1,485,798 $1,485,798 $ 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 2018
required contribution reduced by$0 excess State money reserve.
Pension Trust Required Supplementary Information
Schedule of Funding Progress Firefighters' Pension Trust Fund:
Unfunded
Actuarial Actuarial Actuarial UAAL as
Value of Accrued Accrued Annual a°o of
Actuarial Assets "* Liability(AAI) Liability Funded Covered Covered
Valuation (AVA) -Futry A c (UAAL) Ratio Payroll Payroll
Date a' b' (b-a) (alb) c b-a c
10 01 18 $80,928,687 $84,102,348 $ 3,173,661 96.2% $13,739,853 23.1°.
10 01 17 $70,747,813 $73,738,012 $ 2,990,199 95.9% $13,771,976 21.7°o
10 01 16 $58,512,948 $61,707,055 $ 3,194,1 07 94.8% $11,890,295 26.9°°
10 01 15 $51,534,195 $51,541,750 $ 7,555 100.0% $ 9,671,942 0.10o
10 01 14 $49,189,571 $47,467,581 $(1,721,990) 103.6% $ 8,770,495 t 9.6°
10`01 13 $4:',143,137 $41,366,768 $ (776,369) 101.9% $ 9,092,235 8.500
1001 1 $33,983,491 $33,924,8 5 $ (58,636) 100.2% $ 8,254,150 0 7°,,
10 01 11 $'6,196,164 $26,153,965 $ (42,199) 100.2% $ 8,291,830 0.5°0
10 01 10 $22,990,534 $23,284,830 $ 294,296 98 7"o $ 7,737,940 3.8°o
10'01 09 $17,833,1 1 1 $18,108,267 $ 275,156 98.500 $ 7,522,834 3.7°0
10 01 08 $16,719,426 $16,890,153 $ 170,727 99.0°o $ 7,082,194 2.4°o
'* reflected by actuary as Plan Fiduciary Net Position
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 64 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE G- RETIREMENT PLANS, CONTINUED
Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund,
continued
Firefighters'Pension
Trust Fund
Valuation date 10/01/15
Actuarial cost method Entry Age Normal
Amortization method Level dollar, closed
Mortality table RP2000 Combined Healthy
Remaining amortization period 20 years (as of 10/1/15)
Actuarial asset valuation method 5 Year Smoothed Market
Actuarial assumptions:
Investment rate 7.5% (net of fees)
Projected salary increase Graduated based on Service
LI (9%per year for first 10 years &
(3%per year for 10 or more years)
Inflation 2.5%
i Post retirement cost of living
adjustment 30o
Changes of Assumptions
No changes in assumptions.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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,
2018,the Plan had two (2) active participants.
L
The Plan allows for employer contributions. Amounts contributed by the employer
I. 9 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 30,2018, 2017
and 2016 were $1,174, $4,076 and $1,103, 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 (medical,dental and life)benefits. 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 live
(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 (PEIIP), a
defined contribution plan. The defined benefit plan also provides a$5,000 life
insurance benefit fully paid by the District. 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 PEIIP. Retirees under the PEIIP Plan are responsible for the
' full cost of coverage.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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 benefits.
Effective May 1, 2017 the District offered a post-employment health insurance
supplementation for eligible retirees who have completed fifteen (15)years of service
includingthree (3)years as a Chief Officer. Under thisplan, 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 PEI IP.
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°0 of the spouse's premium at
completion of 15 years of service progressing to 100%of the employee's premium
and 100°0 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 (FRIP) 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 FRIP 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 PR1P Plans.
Note that the projected premiums for the dental and life benefits arc assumed to
cover the entire cost of the program.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Post Employment Health Plan (PEHP)
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
i � 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.
LI 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 PERP Plan's asset custodian and third party administrator is the insurance
company through which the annuity is contracted.
LI
General - Funding Policy
The District paid $172,713 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 30,2018.
The District also contributed $402,500 to the PFI IP Plan for the year ended
September 30, 2018.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 68 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB),CONTINUED
Post Employment Health Plan (PERP),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 two OPEB Plans,on a
combined basis,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.
Plan Description
The year ended September 30,2018 was the District's transition year and as such,
the District implemented GASB No. 75 "Accounting and Financial Reporting for
El Postemployment Benefits Other Than Pensions". GASB No. 75 requires the District
record its actuarially determined total OPEB liability as well as the restatement of the
District's beginning net position balance for the year ended September 30, 2018.
All retired full-time employees are eligible for OPEB benefits if actively employed by
the District immediately before retirement. As of September 30,2018, there were
thirty-six (36) retirees eligible to receive benefits. At September 30, 2018 there
were two hundred twenty-seven (227) active District employees. The benefits are
provided both with contractual or labor agreements.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive
plan (the plan as understood by the employer and plan members) and include types
of benefits provided at the time of each valuation and the historical pattern of sharing
Elof benefit costs between the employer and plan members to that point. The methods
and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Actuarial Methods and Assumptions,continued
At September 30,2018,the District's Net OPEB Liability of$10,173,608 was
measured as of September 30,2017,and was determined by an actuarial valuation
as of that date using the alternate measurement method. OPEB expense for the year
ended September 30,2018 was $975,693. The following actuarial assumptions and
other inputs were applied to all periods included in the measurement:
L9
The following simplifying assumptions were made:
t Mortality-Life expectancies were based on RP2000 Mortality Tables for Males and Females
projected 10 years.
Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost Trend
Model baseline assumptions with an initial rate of 8.75°0 per year trending to 4.00%by 2073.
Turnover-Non-group-specific age-based turnover data from GASB Statement 45 were used as
the basis for assigning active members a probability of remaining employed until the assumed
retirement age and for developing an expected future working lifetime assumption for purposes
of allocating to periods the present value of total benefits paid.
Amortization Period: Rolling 20 year amortization
Amortization Method: level percentage of payroll
The discount rate was 3.64°o(for 2018)(3.06°o for 2017)and was based on the 20 Year Municipal
Bond Rate with AA Aa or higher.
Entry age normal cost method was used.
Inflation Rate 3.00°0
Salary Increases 6.00°0
Discount Rate 3.64°0
Initial Trend Rate 8.75°°
LIUltimate Trend Rate 4.00°0
Years to Ultimate 56
The FRS salary scale was used
Participation percentage: 50°0
The actuarial assumptions used in the September 30,20I 8 valuation were based on results of an
actuarial experience study performed for the I RS Retirement Plan.
The rationales for selecting each of the assumptions used in the financial accounting valuation
and for the assumptions changes summarized above are to best relied the current market
conditions and recent plan e\perience.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability
11 Amount
Balance at September 30,2017 $ 10,117,484
Changes for the Year:
Service Cost 723,937
Interest Cost on Total OPEB Liability 326,072
Change in Benefit Terms -
Difference Between Expected and Actual Experience -
Changes in Assumptions (620,125)
Benefit Payments 373,760
Net Changes 56,124
Balance at El September 30,2018 $ 10 173,608
The following presents the net OPEB liability of the District as well as what the
El District's net OPEB liability would be if it were calculated using a discount rate that is
1 percent higher or 1 percent lower than the current discount rate.
1%Decrease Current Rate 1°0 Increase
2.64°0 3.64°0 4.64°0
Net OPEB Liability $ 11,275,143 $ 10,173,608 $ 9,213,946
The following presents the net OPEB liability of the District as well as what the
District's net OPEB liability would be if it were calculated using healthcare trend rates
that are 1 percent higher or 1 percent lower than the current healthcare trend rate.
1°0 Decrease Trend Rate 1°0 Increase
3.00-7.75°0 4.00-8.7500 5.00-9.7500
Net OPER Liability $ 8,974,801 $ 10,173,608 $ 11,600,859
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30, 2018
NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
(OPEB), CONTINUED
Changes in the Net OPEB Liability,continued
For the year ended September 30,2018,the District recognized OPEB expense
credit of$975,693. At September 30, 2018,the District reported deferred outflows
of resources and deferred inflows of resources related to OPEB from the following
I sources:
Deferred Deferred
L_ Outflows of Inflows of
Resources* Resources*
Differences Between Expected and
Actual Experience -
Changes in Assumptions - 542,609
Net difference between projected
and actual earnings - -
Employer contribution subsequent
to measurement date 409,664 -
Total $ 409,664 $ 542,609
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended September 30: Amount
2019 $ (77,516)
2020 (77,516)
1 2021 (77,516)
2022 (77,516)
2023 (77,516)
Thereafter (155,029)
Total $ (542,609)
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE I- RISK MANAGEMENT
During the year ended September 30,2018,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
_j 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
r°1 deductible to the HSA plan annually.
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 30,2018 were
$1,030,907.
The District incurred$4,465,785 in health related claims, third party administration
LIcosts, disability,premiums and reinsurance premiums including IISA contributions
(noted above) and workers compensation insurance during the year ended
September 30, 2018, 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
$450,512 for building,auto and other liability insurances for the year ended
ElSeptember 30, 2018. 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, 2018.
NOTE J - PROPERTY TAXES
Property taxes arc 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 properly taxes are allowed for payments made prior to
the April I delinquent date. Tax certificates arc sold to the public for the full amount
4f.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE J- PROPERTY TAXES,CONTINUED
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 2018 is included in the accompanying basic financial
statements, since such taxes are collected to finance expenditures of the subsequent
period.
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, 2018, $284,278 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 July 1
Millage resolution approved No later than 93 days following
certification of assessment roll.
Taxes due and payable(Levy date) November/with various discount
idprovisions through March 31.
Property taxes payable-maximum
discount(4 percent) 30 days atter levy date
Beginning of fiscal year for which
• taxes have been levied October 1
Due date March 31
Taxes become delinquent(lien date) April 1
Tax certificates sold by the Collier
County Tax Collector Prior to June 1
Li
For the year ended September 30, 2018, the Board of Commissioners of the District
levied ad valorem taxes at a millage rate of$1.00 per$1,000(1.0 mills) of the 2017
net taxable value of real property located within the North Naples Scrvicc Delivery
Area.
For the year ended September 30, 2018, the Board of Commissioners of the District
El levied ad valorem taxes at a millage rate of$3.50 per$1,000 (3.5 mills)ofthc 2017
net taxable value of real property located within the Big Corkscrew Island Service
Delivery Area.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE K- IMPACT FEE FUND ACTIVITY
During the year ended September 30, 2018, the Impact Fee Fund had the following
activity:
Amount
Unearned revenue,October 1,2017 $ 2,264,743
Impact fee receipts 964,199
Due from other Governments 85,601
Interest and other income 11,701
Operating expenses (30,009)
Loan interest (12,937)
1 Principal reduction (57,500)
Capital outlay (3,140,069)
Transfers in(out) -
Unearned revenue,September 30,2018 $ 85 729
NOTE L- FUND BALANCE/NET POSITION ALLOCATIONS
Fund Balance/Net Position were allocated for the following purposes at September
30,2018:
NN BCI lotal
Nons endable-General Fund Amount Amount Amount
Nonspendablc fund balance-General Fund prepaid expenses $ 1,040 526 $ - $ 1,040,526
NN 13C1 Total
Assi ned fund balance-General Fund Amount Amount Amount
General 1 and-I xpenses-Oct-Dec $ 8,022,640 $ 533,336 $ 8,555,976
General Fund-Minimum operating reserve per policy 1,263,599 - 1,263,599
I
1 oral General Fund $ 9,286 239 $ 533,336 $ 9,819,575
NN 13C1 1 otal
l nassi'ned General land Amount Amount Amount
General Fund 4 S - $
I otal
Restricted Fund Balance/Net Position In )eeUun I ce I and Amount
Inspection Fee Fund $ 113,706
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
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$8,191. The
minimum annual lease payments are as follows:
Years Ending
September 30 Amount
2019 $ 90,996
2020 90,996
2021 37,915
1 $ 219,907
1 Lease expense for the year ended September 30,2018 was $90,999.
NOTE N- COMMITMENTS AND CONTINGENCIES
The District is involved from time to time in certain routine litigation, the substance of
which either as liabilities or recoveries, would not materially affect the financial
position of the District. Although the final outcome of the lawsuits,assertions,and
claims or the exact amount of costs and/or potential recovery is not presently
determinable, in the opinion of the District's legal counsel, the resolution of these
matters will not have a materially adverse affect on the financial condition of the
District. As a general policy, the District plans to vigorously contest any such
matters.
El
NOTE O- DEFICIT UNRESTRICTED NET POSITION (NET ASSETS)
During the year ended September 30, 2017, the District's unrestricted net position
(net assets)balance was a deficit of$(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
Liequal to four(4) months of actual expenditures. However, the Board assigned
100°0 of the available fund balance of$7,744,006 to fund operations for the first
quarter of the subsequent fiscal year.
l
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 102
NOTES TO THE FINANCIAL STATEMENTS
September 30,2018
NOTE O - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS), CONTINUED
During the year ended September 30,2018, the District's unrestricted net position
(net assets)balance was a deficit of$(7,858,148), due substantially to recording the
current year actuarially determined net pension liability of$14,648,252 and the net
OPEB liability of$10,173,608. The District's total available fund balance at
September 30,2018 remains approximately equal to three (3)months of actual
expenditures. However,the Board assigned fund balance of$9,014,782 to fund
operations for the first quarter of the subsequent fiscal year.
NOTE P - CHANGES IN ACCOUNTING PRINCIPLE
During the year ended September 30,2018, the District implemented GASB
Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions". The implementation of the pronouncement required the
restatement of the District's September 30, 2017 governmental activities-net
position as follows:
Governmental Activities Amount
Net Position,as Previously Reported $ 28,256,992
Cumulative Effect of GASB No. 75
Other Post Employment Liability(OPEB) (6,361,646)
Net Position, As Restated $ 21,895,346
LI
II
j
Li
L. COMBINING FINANCIAL STATEMENTS
BY SERVICE DELIVERY AREA
1
4>
t, I
4
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 78 of 102
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - GENERAL FUND -
BY SERVICE DELIVERY AREA
Year Ended September 30,2018
General Fund
North Naples Big Corkscrew Total
Service Island Service General
Delivery Area Delivery Area Fund
REVENUES
Ad Valorem taxes $ 29,986,289 $ 5,144,919 $ 35,131,208
Intergovernmental revenue
L State firefighter supplement 73,760 - 73,760
Federal grants 249,324 249,324 498,648
u Other Intergovernmental 54,863 54,863
, ) Charges for services 675,378 2,856 678,234
Miscellaneous:
Interest 107,347 390 107,737
Other 463,030 20,736 483,766
TOTAL REVENUES 31,609,991 5,418,225 37,028,216
't EXPENDITURES
Current
Public safety
Personnel services 24,647,879 4,743,082 29,390,961
Operating expenditures 4,109,400 723,543 4,832,943
Capital outlay 1,071,652 191,539 1,263,191
Debt service:
Principal reduction 350,669 62,759 413,428
Interest and fiscal charges 76,612 13,711 90,323
Reserves - - _
in,.;,i TOTAL EXPENDITURES 30,256,212 5,734,634 35,990,846
EXCESS OF REVENUES
El OVER(UNDER)EXPENDITURES 1,353,779 316,409 1,037,370
OTHER FINANCING SOURCES AND(USES)
Proceeds from capital lease 888,147 888,147
Proceeds from disposition of capital assets 14,600 - 14,600
Transfer in - -
transfer out - -
,. I TO(AI 01111 R I INANCING SOURCI S
AND(USI'S) 902,747 - 902,747
I rx, i.SS OF RFVFNUI S AND 01III It
I INANEENG SOURCI S OVFR(UNDI R)
ElLXPI NI)!I URI S AND 01111 It
I INANCING USES 2256.526 (316,409) 1,940,117
FUND BALANCF Beginning 8,070,239 849,745 8,919,984
El FUND RAI ANCF Ending $ 10 326 765 $ 533,336 $ 10,860,101
El
11 I he accompanying notes arc an integral part of this statement.
ii
REQUIRED SUPPLEMENTARY
INFORMATION
OTHER THAN MD&A
r-
r
11
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 102
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE -BUDGET AND ACTUAL-GENERAL FUND -
SUMMARY STATEMENT -NN
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Ad Valorem taxes $ 29,300,110 $ 29,300,110 $ 29,986,289 $ 686,179
Intergovernmental revenue:
State firefighter supplement 41,205 41,205 73,760 32,555
Federal grants 205,500 266,756 249,324 (17,432)
Other Intergovernmental 25,446 25,446 54,863 29,417
Charges for services 565,423 565,423 675,378 109,955
Miscellaneous:
Interest 53,500 53,500 107,347 53,847
Other 423,160 423,160 463,030 39,870
:I
Subtotal-revenues 30,614,344 30,675,600 31,609,991 934,391
Cash brought forward 9,005,368 8,070,239 - 8,070,239
TOTAL REVENUES 39,619,712 38,745,839 31,609,991 7,135,848
EXPENDITURES
Current
i ' Public safety
Personnel services 24,145,752 24,189,010 24,647,879 (458,869)
Operating expenditures 4,212,574 4,257,962 4,109,400 148,562
:. Capital outlay 247,250 1,092,181 1,071,652 20,529
Debt service:
Principal reduction 364,748 364,748 350,669 14,079
Interest and fiscal charges 76,125 76,125 76,612 (487)
Reserves 10,573,263 8,544,648 8,544,648
1 OTAL EXPENDITURES 39,619,712 38,524,674 30,256,212 8,268,462
[ 1
` EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - 221,165 1,353,779 1,132,614
`1 OTIIER FINANCING SOURCES AND(USES)
' } 753,326 888,147 131,821
Proceeds from capital lease
Proceeds from disposition of capital assets - 90,000 14,600 (75,400)
I I ransfer in - - -
1 ianster out - 1,064,491 1,061,491
TOTAL 01111 R FINANCING SOURCES
34
AND(USES) - 221,165 902,747 1,123,912
I XCLSS OI•RI.VENUES AND OTHER
LI I INANCING SOURCES OVER(UNDER)
LXPI•NDII-URES AND OTHER
FINANCING USES $ S - 2,256,526 $ 2 256 526
II FUND BALANCE-Beginning 8,070 239
FUND BALANCE Ending S 10,326,765
11
13 I he accompanying notes arc an integral part or this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 80 of 102
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL FUND-DETAILED STATEMENT-NN
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
k Bud,et Bud et Actual Unfavorable
REVENUES
LIAd Valorem taxes $ 29,300,110 $ 29,300,110 $ 29,986,289 $ 686,179
Intergovernmental revenue:
State firefighter supplement 41,205 41,205 73,760 32,555
EdFederal grants 205,500 266,756 249,324 (17.432)
Other Intergovernmental 25,446 25,446 54,863 29,417
Charges for services 565,423 565,423 675,378 109,955
- Miscellaneous:
Interest 53,500 53,500 107,347 53,847
'it ; Other 423,160 423 160 463,030 39,870
Subtotal-revenues 30,614,344 30,675,600 31 609,991 934,391
Cash brought forward 9,005,368 8 070,239 - 8,070,239
a,
TOTAL REVENUES 39,619,712 38,745 839 31,609,991 7,135,848
t ' EXPENDITURES
Current
Public safety
Li Personnel services:
Salaries
H Firefighters&Admin,
11,112,005 14 112,005 14,024,784 87,221
Commissioners 25 446 25 446 24,725 721
Overtime 703 006 720 818 620,015 100,803
EVacation pay 1 14.507 114,507 145 290 (30,783)
Sick leave 495 661 495,661 611,257 (115,596)
,,,,i Professional/Incentives and holiday pay 648503 648 503 681,677 (33,174)
4.al Payroll taxes
Social Security 1238 646 1 238 646 1,207,405 31,241
il 13cnclils
Retirement :`.,674,844 '674 844 3 248.728 (573,884)
l leallh insurance(including(ISA) 3,088,876 1 088 856 2825 862 262,994
ElDisability insurance 61-'552 62 552 89,676 (27,124)
Unemployment 8,482 8.482 8,482
Workers compensation 716,461 776 461 639,470 136,991
nMedical clinic/employee physicals 171,336 196 782 185,197 11,585
Post emplosmart health plan(1'1 111') 22,901 22 901 341,400 (318,199)
13 Relaretmait reco(enuon 2 546 2 546 2 393 153
'subtotal I'cr„.onncl.ervacc. 24 145 752 21 189 01(1 24 647,879 458 869
11 I he accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 81 of 102
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL FUND -DETAILED STATEMENT -NN(CONTINUED)
Year Ended September 30,2018
General Fund
Var ance
Or final Final Favorable
Operating expenditures: Bud;et Bud et Actual Unfavorable i
Insurance 360,485 360,485 382,124 (21,639)
Uniforms 85,615 91,298 45,022 46,276
Communications 5,089 5,089 5,362 (273)
Telephone 319,275 319,275 243,449 75,826
Utilities 234,392 234,392 233,392 1,000
L I Maintenance
Vehicle 240,041 240 041 251,723 (11,682)
i Equipment 69,977 69,977 51,639 18,338
I J Computer 342,444 342 444 281,671 60,773
Hydrant 33,928 33,928 22,698 11,230
Building 287,116 287,116 287,148 (32)
a. ' Supplies
Office 63,615 63,615 39,910 23,705
Protective gear 72,097 87,619 95,492 (7,873)
7 Station 48,093 48,093 48,627 (534)
4) Emergency medical 143,431 143,431 129,083 14 348
Enterprise Lease/Rental 78,034 78,034 77,185 849
Hurricane/emergency - - 71,723 (71,723)
Equipment
Office 39,865 39,865 19,983 19,882
Fire 84,141 94,320 62,029 32,291
Shop 16,540 16 540 17,708 (1,168)
Warehouse/logistics 10,603 10,603 4,222 6,381
Professional and other fees
Legal and professional 371.512 383,820 429,204 (45,384)
, Property appraiser fees 214,165 214,165 199347 14,818
Tax collector fees 589,794 589,794 611,577 (21.783)
Accounting 67,856 67,856 68,531 (675)
Miscellaneous
Travel 8.482 8 482 13,324 (4.842)
Water/sewer fee St.44 6,420 6,420 - 6,420
Public information officer 4,835 4,835 5,143 (308)
II Fuel and oil 160,086 160,086 220,447 (60 361)
Legal advertisements 6,786 6,786 8,234 (1,448)
Dues and subscriptions 13,754 13,754 7,146 6,608
CERT team 9,330 9,330 10,953 (1,623)
Dive team 1,527 3,223 3,468 (245)
Fire prevention 25,446 25,446 16,307 9,139
ti Training 182,278 182,278 116,256 66 022
Hazardous materials 848 848 3,227 (2,379)
Technical rescue 2,545 2,545 3,303 (758)
Bout team 3,647 3,647 3,527 120
11 K-9 search and rescue - - 9,711 (9 711)
Ilonor guard - - -
OI'S - -
11 Peer fitness - - - -
Miscellaneous 8,482 8,482 9,505 (1.1)23)
Operational Reserves
Contingency -
HSubtotal-Operating expenditures 4,212 574 4 257 962 1 109 400 118 562
ElI he accompanying notes arc an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 102
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
GENERAL FUND -DETAILED STATEMENT-NN (CONTINUED)
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
Capital outlay: Bud:et Bud et Actual Unfavorable.
Land - - - -
Station improvements 54,285 94,150 108,162 (14,012)
?'"', Fire&rescue equipment 42,410 42,410 53,266 (10,856)
1 I Protective gear 84,820 123,837 47,849 75,988 ;
Communication equipment - - 3,442 (3,442)
';' Office equipment - - - -
t . Medical equipment - - -
Computers 55,133 55.133 48,097 7,036
3 TRT - - - -
Boat team - - - -
Vehicle purchase 8,482 8,482 10,432 (1,950)
71 Shop equipment -
4,502 (4,502)
Training equipment 28,741 (28,741)
Station equipment&computers 2 120 2,120 - 2,120
Logistics/warehouse - - - -
Hazardous materials equip. - - - -
Fire apparatus - 753,326 756,974 (3,648)
Dive equipment - 12,723 10,187 2,536
Fire prevention - -
Subtotal-Capital outlay 247 250 1,092 181 1,071,652 20 529
Debt service:
I „i Principal reduction 364,748 364,748 350,669 14,079
Interest and fiscal charges 76,125 76 125 76 612 487
Subtotal-Debt service 440 873 440,873 427 281 13 592
Reserves:
Reserves 10 573,263 8 544 648 8 544 648
` TOTAL EXPENDITURES 39 619 712 38 524,674 30,256,2(2 8 268,462
EXCESS OF REVENUES
1 I OVER(UNDER)EXPENDITURES 221,165 1353 779 1,132 614
Oi 11ER FINANCING SOURCES AND(USES)
Proceeds from capital lease 753 326 888,147 134821
Proceeds from disposition of capital assets 90 000 14 600 (75400)
I ransfers in
transfers out 1064 491 - 1 064,491
,; 101'ALOTHER FINANCING SOURCES AND(USES) 221 165 902 747 1 123 912
I XCESS OF REVENUES AND OTHER FINANCING
L,r) SOURCES OVER(UNDER)EXPENDITURES
AND 01111 R I INANCING IJSES $ $ 2 256 526 $ 2 2)6 526
MUNI)RAI ANCI' Beginning 8 070 239
MINI)II 0 ANCI. Ending $ 10 326 765
the accompanying notes arc an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 83 of 102
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND -
SUMMARY STATEMENT-BCI
Year Ended September 30,2018
General Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable
REVENUES
Ad Valorem taxes $ 5,020,163 $ 5,020,163 $ 5,144,919 $ 124,756
Intergovernmental revenue:
State firefighter supplement 7,374 7,374 - (7,374)
Federal grants 205,500 266,755 249,324 (17,431)
I Other intergovernmental 4,554 4,554 - (4,554)
Charges for services 10,000 10,000 2,856 (7,144)
' Miscellaneous:
L I Interest 4,000 4,000 390 (3,610)
Other 60,000 60,000 20,736 39,264
f x Subtotal-revenues 5,311,591 5,372,846 5,418,225 45,379
Cash brought forward 1,531,982 849,745 - 849,745
TOTAL REVENUES 6,843,573 6,222,591 5,418,225 804,366
1 EXPENDITURES
Current
Public safety
Personnel services 4,652,631 4,660,373 4,743,082 (82,709)
Operating expenditures 753,904 762,027 723,543 38,484
Capital outlay 44,250 195,466 191,539 3,927
Debt service:
Principal reduction 65,278 65,278 62,759 2,519
Interest and fiscal charges 13,624 13,624 13,711 (87)
Reserves 1,313,886 470,135 - 470,135
TOTAL EXPENDITURES 6,843,573 6,166,903 5,734,634 432,269
{ 1 EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - 55,688 316,409 372,097
OTIIER FINANCING SOURCES AND USES
LProceeds from disposition of capital assets 134,821 - (134,821)
Transfer out - 190,509 190,509
I OTAI O fl IFR FINANCING SOURCES
AND USES - 55,688 55,688
1 XCI-SS OF REVENUES AND O f1IER
I'INANCING SOURCES OVER(UNDER)
EXPFNDI 1 URLS AND O n 1LR
FINANCING USES $ $ (316,409) $ 316,109
I(UND BALANCE-Beginning 819 715
I,UNDBALANCE-Ending $ 513,336
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 84 of 102
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL-
GENERAL FUND -DETAILED STATEMENT-BCI
Year Ended September 30,2018
General Fund
Variance
On mat Final Favorable
Bud et Bud .t Actual ,Unfavorable)
REVENUES
Ad Valorem taxes $ 5,020,163 $ 5,020,163 $ 5,144,919 $ 124,756 I
Intergovernmental revenue:
State firefighter supplement 7,374 7,374 - (7,374)
a
Federal grants 205,500 266,755 249,324 (17,431)
Other intergovernmental 4,554 4,554 - (4,554)
t .( Charges for services 10,000 10,000 2,856 (7,144)
tMiscellaneous:
Interest 4,000 4,000 390 (3,610)
Other 60,000 60,000 20,736 39,264
i s' Subtotal-revenues 5,31 1,591 5,372,846 5,418,225 45,379
Cash brought forward 1,531,982 849,745 - 849,745
71
,,,`1 TOTAL REVENUES 6,843,573 6 222,591 5,418,225 804 366
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Firefighters&Admin. 2,525,586 2,525,586 2,509,977 15,609
Salaries-harmonization 312,460 312,460 312,460 -
Commissioners 4,554 4,554 4,425 129
i -i Overtime 125,815 129,003 110,962 18,041
Vacation pay 20,493 20,493 26,002 (5,509)
Sick leave 88,426 88,426 109,395 (20.969)
Incentives and holiday pay 112,513 112,513 121,998 (9,485)
Payroll taxes
Social Security 221,677 221,677 216,086 5 591
El Benefits
Retirement 478,709 478,709 581,417 (102,708)
Ilealth insurance 552,804 552,804 498,494 54,310
Disability insurance 11,195 11,195 23,291 (12,096)
LiBenefits harmonization 22,702 22,702 19,459 3,243
Unemployment 1,518 1,518 1,518
Workers compensation 138,961 138,961 114,444 21 517
11 Medical clinic/employee physicals 30,664 35,218 33,144 2 071
Post employment health plan(PEI IP) 4,099 4,099 61,100 (57001)
Retirement recognition 455 455 428 27
ElSubtotal-Personnel services 4 652,631 4 660 373 4 743 0112 82 709
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 102
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE -BUDGET AND ACTUAL-
GENERAL FUND -DETAILED STATEMENT-BCI (CONTINUED)
Year Ended September 30, 2018
General Fund
Variance
Original Final Favorable
Operating expenditures: Bud Cl Bud et Actual Unfavorable
Insurance 64,515 64,515 68,388 (3,873)
Uniforms 15,323 16,340 8,058 8,282
Communications 911 911 960 (49)
Telephone 57,140 57,140 43,569 13,571
1 Utilities 41,948 41,948 41,769 179
Maintenance
Vehicle 42,959 42,959 45,050 (2,091)
Equipment 12,515 12,515 12,999 (484)
jComputer 61,286 61,286 50,660 10,626
Hydrant 6,072 6,072 305 5 767
Building 51,384 51,384 51,390 (6)
( 1 Supplies
Office 11,385 11,385 10,643 742
Protective gear 12 903 15,681 17,090 (1,409)
Station 8,607 8,607 8,703 (96)
Emergency medical 25,669 25,669 26,271 (602)
Enterprise Lease/Rental 13,966 13,966 13,814 152
Hurricane/emergency - 12 836 (12,836)
Equipment
Office 7,135 7,135 75 7,060
Fire 15,059 16,880 11,101 5,779
,x Shop 2,960 2,960 - 2,960
I. Warehouse/logistics 1,898 1,898 756 1,142
Professional and other fees
Legal and professional 66 488 68,691 76,904 (8,213)
LiProperty appraiser fees 38,329 38,329 35,677 2,652
Tax collector fees 105,554 105,554 90,946 14,608
Accounting 12,144 12,144 12,173 (29)
Miscellaneous
Travel 1,518 1,518 2,385 (867)
Water/sewer fee St.44 1,149 1.149 8,110 (6 961)
Public information officer 865 865 2,333 (1,468)
t= Public education officer - -
Fuel and oil :8 6A0 28 650 39,453 (10,803)
Legal advertisements 1;214 1 214 1,474 (260)
LI Dues and subscriptions ',461 2 161 1,279 1.182
CI'R I'team 1670 1 670 1,960 (290)
Dive team 273 577 621 (44)
Li I ire prevention 1,551 1 554 23 4 531
Training 1.551 i'622 22,288 IU 314
Hazardous materials 15' 152 578 (426)
Iechnicalrescue 45 455 591 (136)
SI,Li Boat team 65 t 653 631 22
K 9 search and rescue -
Ilanor guard
11 OPS
I'ecr fitness
Miscellaneous 1 518 1518 1 680 (162)
Opersiioaal Reserves
jCoat in;'eucy
Subtotal Operating cxpemlmue 753 901 7(,2 n27 72i 513 38 481
.`
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 102
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL-
GENERAL FUND-DETAILED STATEMENT-BCI(CONTINUED)
E
Year Ended September 30,2018
General Fund
Variance
Ori:inal Final Favorable
Capital outlay: Budet Bud-et Actual ,Unfavorable)
ElLand - - -
Station improvements 9,715 16,850 29,696 (12,846)
Fire&rescue equipment 7,590 7 590 616 6,974
Protective gear 15,180 22,163 8,563 13,600 1
Communication equipment
Office equipment - - -
Medical equipment - - - -
Computers 9,867 9,867 8,357 1,510
TRT - -
Boat team - - - -
i. Vehicle purchase 1,518 1,518 1,867 (349)
Station equipment - - _
Training equipment - - 5,144 (5,144)
Community outreach 380 380 - 380
Logistics/warehouse -
- -
Hazardous materials equipment - - - -
Fire apparatus -
134,821 135,473 (652)
Dive equipment 2,277 1 823 454
) Subtotal-Capital outlay 44,250 195,466 191,539 3,927
Debt service:
1 Principal reduction 65,278 65,278 62 759 2,519
i',. Interest and fiscal charges 13,624 13 624 13 711 87
Subtotal-Debt service 78 902 78,902 76 470 2 432
Reserves:
Reserves 1,313 886 470 135 470 135
TOTAL EXPENDITURES 6,843 573 6 166 903 5 734 634 132 269
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES 55,688 316 409: I37097;
O I IILR I'INANCING SOURCES AND USES
Proceeds from disposition of capital assets 134,821 (134 821)
I ramler out 190 509 190 509
I Ol AI OTl IER FINANCING SOURCES AND USES 55 688 55688
lXt ISS OF REVENUES AND OTHER FINANCING
SOURCES OVER(UNDER)EXPENDITURES
nAND OTHER FINANCING USES $ 9, 116 409
( ) 1, 316409
FUND BALANCE-Beginning 849 745
1,UNI)BALANCE-Ending % 513 336
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 87 of 102
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE - COMBINED SERVICE DELIVERY AREAS-
BUDGET AND ACTUAL-IMPACT FEE FUND-SUMMARY STATEMENT
Year Ended September 30,2018
Impact Fee Fund
Variance
Original Final Favorable
Budget Budget Actual (Unfavorable)
REVENUES
Fees:
f Impact fees $ 1,300,000 $ 1,300,000 $ 3,228,814 $ 1,928,814
Miscellaneous:
t.;,.I Interest 6,000 6,000 11,701 5,701
Transfer from General Fund - 1,255,000 - (1,255,000)
Other - - - -
Subtotal-revenues 1,306,000 2,561,000 3,240,515 679,515
Cash brought forward 877,666 2,264,744 - (2,264,744
TOTAL REVENUES 2,183,666 4,825,744 3,240,515 1,585,229
EXPENDITURES
Current
Public safety
Operating expenditures 71,000 71,000 30,009 40,991
Capital outlay 1,450,000 4.337,432 3,140,069 1,197,363
€ Debt service:
` 3 Principal 57,500 57,500 57,500 -
Interest and fiscal charges 17,250 17,250 12,937 4,313
r] Reserves 587,916 342,562 - 342,562
1OTAL EXPENDITURES 2,183,666 4,825,744 3,240,515 1,585,229
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES - - -
OTIIER FINANCING SOURCES AND(USES)
I ransfers in - - - -
Li 1 01 AL OI I IFR FINANCING SOURCES
AND(USES) - - - -
11 I.XCISS 01 RIVI NUES AND OTHER
I INANCING SOURCES OVER(UNDER)
LXPI NDI FURLS AND OTHER
FINANCING USES $ - $ - - $ -
FUND 13A1 ANCIBeginning
13 I UNI)13A1 ANCI 1nding $
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 102
STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-COMBINED SERVICE DELIVERY AREAS-
BUDGET AND ACTUAL-IMPACT FEE FUND -DETAILED STATEMENT
Year Ended September 30,2018
Im,act Fee Fund
Variance
Original Final Favorable
REVENUES Bud et Bud,,et Actual (Unfavorable
ii i Fee,
Impact fees $ 1,300,000 $ 1,300,000 $ 3,228,814 $ 1,928,814
1; . Miscellaneous:
"`3 Interest 6,000 6,000 11,701 5,701
Transfer from General Fund - 1,255,000 - (1,255,000)
Other - - - -
Subtotal-revenues 1,306,000 2 561,000 3,240,515 679,515
Cash brought forward 877,666 2,264,744 - 2,264,744
1 TOTAL REVENUES 2,183,666 4,825,744 3 240,515 1,585,229
EXPENDITURES
1 Operating expenditures:
Impact fee collection - - 14,735 (14,735)
Professional fees 71 000 71 000 15 274 55,726
Subtotal-Operating expenditures 71,000 71 000 30,009 40 991
Capital outlay.
Preplanning - 16,733 (16,733)
Construction in progress 1050,000 1,050,000 4,010 1,045,990
Emergency signal-station 1442 400,000 400,000 229,454 170,546
Protective gear - - - -
Equipment - - - -
Land purchase - 2,887,432 2,889,872 (2,440)
Miscellaneous - -
Subtotal-Capital outlay 1,450 000 4 337 432 3 140 069 1 197 363
f ] Debt service
Principal 57,500 57,500 57 500
r ? Interest and fiscal charges 17 250 17 250 12 937 4 313
L I Subtotal-Debt service 74 750 74 750 70 437 4 313
Reserves 587 16 2 562 342 562
I OTAL EXPENDITURES 2 183 666 4 825 741 3 240 515 1 585 229
I ACESS OF REVENUES
OVER(UNDER)EXPENDITURES
01111.K I'INANCING SOI ItCES AND(USES)
I ranter,in(out)
"I OPAL 01111 R FINANCING SOURCES
AND(USES)
f XCESS 01 RI VENUES ANI)O•fl•IER
FINANCING SOURCES OVER(UNDER)
I XI'I NDI I URI S AND(MLR ILR I•INANCING I SI S $ $ $
I UND 13A1 ANCI Beginning
I UND 13A1 AN 1 1 tiding $
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 102
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL-COMBINED SERVICE DELIVERY AREA-
INSPECTION FEE FUND -SUMMARY STATEMENT
lns:ection Fee Fund
Var;ance
Ori sinal F'nal Favorable
Budget Bud get Actual (Unfavorable)
REVENUES
IJ Charges for services
Inspection fees $ 980,000 $ 980,000 $ 946,446 $ (33,554)
Plan review fees 980,000 980,000 1,001,237 21,237
Miscellaneous.
Interest 2,000 2,000 3,832 1,832
Subtotal-revenues 1,962,000 1,962,000 1,951,515 (10,485)
Cash brought forward 1,507 1,507 - 1,507
TOTAL REVENUES 1,963,507 1,963,507 1,951,515 11,992
EXPENDITURES
Current
Public safety
Personnel services 1,824,903 1,824,903 1,752,961 71,942
Operating expenditures 138,400 138,400 104,903 33,497
Capital outlay - - - -
Reserves 204 204 - 204
t. .3 TOTAL EXPENDITURES 1,963,507 1,963,507 1,857,864 105,643
EXCESS OF REVENUES
OVER(UNDER)EXPENDITURES $ - $ 93,651 $ 93,651
FUND BALANCE-Beginning 20,055
FUND BALANCE-Ending $ 113,706
n
El
`t
he accompanying notes are an integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 102
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE
DELVERY AREA-INSPECTION FEE FUND-DETAILED STATEMENT
Ins ection Fee Fund
Variance
Orig nal Final Favorable
Bud et Bud et Actual Unfavorable',
REVENUES
1
Charges for services:
Inspection fees $ 980,000 $ 980,000 $ 946,446 $ (33,554)
t
t '
t. :) Plan review fees 980,000 980,000 1,001,237 21,237
Miscellaneous:
I
f Interest 2,000 2,000 3,832 1,832
Subtotal-revenues 1,962,000 1,962,000 1,951,515 (10,485)
Cash brought forward 1,507 1,507 - 1,507
a TOTAL REVENUES 1963,507 1,963,507 1,951,515 11,992
EXPENDITURES
Current
Public safety
Personnel services:
Salaries
Regular 1,230,430 1,230,430 1,181,110 49,320
t, i Overtime 50,000 50,000 50,796 (796)
Sick leave 25 000 25000 - 25,000
0 Vacation pay - - - -
Professional/Incentives and holiday pay 2600 9,600 9,600
Payroll taxes
Social Security 103,891 103,891 94,797 9,094
Benefits
Retirement 154,577 154,577 142,113 12,464
ElIlcalth insurance 198,210 198,210 223,243 (25,033)
Disability insurance 10,000 10,000 10,000
yj
Medical clinic/employee physicals 1,000 1000 1,000
Unemployment compensation -
Workcrs compensation 42 195 42 195 51 302 9 107
ElSubtotal Personnel services 1 824 903 1824 903 1752 961 71 942
Eil
ElI he accompanying notes are all integral part of this statement.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 91 of 102
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN
FUND BALANCE-BUDGET AND ACTUAL - COMBINED SERVICE
DELVERY AREA-INSPECTION FEE FUND-DETAILED STATEMENT(CONTINUED)
Ins ection Fee Fund
Variance
i t Oris-mal Final Favorable
Operating expenditures: Bud,et Bud;et Actual Unfavorable
Uniforms 1,000 1,000 - 1,000
Telephone 1,000 1,000 - 1,000
t J Utilities 2,500 2,500 - 2500
Rent 50,000 50,000 50,000 -
Maintenance
I .3 Computer software&supplies 40,000 40,000 38,973 1,027
Hydrant - - -
Supplies
f 'i Office 2,000 2,000 149 1,851
`` ' Miscellaneous
Employee physicals - - - -
Dues&subscriptions 6,900 6,900 2,370 4,530
Fire prevention 5,000 5,000 4,909 91
Training 20,000 20,000 3,142 16,858
Travel 10,000 10,000 5 360 4,640
Subtotal-Operating expenditures 138,400 138,400 104 903 33 497
Capital outlay:
-0., i Office facility
Vehicles
Subtotal-Capital outlay
Debt service:
Principal reduction
Interest and fiscal charges
Subtotal Debi service
Reserves 204 204 204
'i IOIALLXPINDIIURI S 1 963 507 1963507 1,857 864 105 643
1-KL SS 01 RI VI NULS
OVER(UNDER) EXPENDI I URI S $ $ 93,651 $ 93.651
/ FUND BAI ANCI Beginning 20,055
II
FUND BAI ANCI Uniting 'i 111 706
I he accompanying notes arc an integral part of this statement.
r11 Page 92 of 102
2014
0.041592399%
Li $ 2,537,748
$ 6,293,887
40.32%
96 09%
f.
2014
S 971,792
El971 792
S 6,293,887
15 44%
n
El
Page 93 of 102
2014
0.021145042°.
$ 1,977,113
$ 6,293,887
31.41%
1
0 99%
r
2014
, 65 973
65 973
$
$ 6,293,887
I 05%
0
1
a
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 102
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-FRS/HIS
September 30,2018
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.
i. j 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
LI 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 7.10%to 7.00%. 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.
L
Because the HIS Program uses a pay-as-you-go funding structure, a municipal bond
rate was increased from 3.58°0 to 3.87°o 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, 2018, 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 7.10 percent to
7.00 percent.
Ilealth Insurance Subsid\ Pension Plan
The municipal rate used to determine total pension liability increased from 3.58
percent to 3.87 percent.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 95 of 102
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-FRS/HIS
September 30,2018
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
ri 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
k:
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, 2018 remained at 6.4 for FRS and 7.2 years
for IIIS.
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 96 of 102
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND
RELATED RATIOS GASB 75
Changes in Employer's Net OPEB Liability and Related Ratios as of September 30:
Net OPEB Liability 2018
Service Cost $ 723,937
Interest Cost on Total OPEB Liability 326,072
Changes in Benefit Terms
Differences Between Expected and Actual Experience -
Changes in Assumptions (620,125)
Benefit Payments (373,760)
1 Net Change in net OPEB Liability 56,124
Net OPEB Liability-Beginning of Year 10,117,484
Net OPEB Liability-End of Year ,10,173,608
NOTE: Information for FY 2017 and earlier is not available.
Plan Fiduciary Net Position as of September 30:
2018
Contributions-Employer $ 373,760
Net Investment Income -
Benefit Payments (373,760)
Administrative Expense -
Net Change in Fiduciary Net Position -
Fiduciary Net Position-Beginning of Year -
Fiduciary Net Position-End of Year $ -
Net OPEB Liability 10,173,608
Fiduciary Net Position as a°0 of Net OPEB Liability 0.0000
r 7 Covered-Employee Payroll
Net OPEB Liability as a 00 of Payroll*
* Because this OPEB plan does not depend of salary,no information is provided.
NOTE: Information for FY 2017 and earlier is not available.
Notes to the Schedule:
Benefit Changes None
Changes of Assumptions The discount rate was changed as Ibllows:
9 30 17 3.06°0
Li 9 30 18 3.64°0
Population covered by Plan: 227 active 36 inactive
Plan has no specific trust established.$0 assigned foi OP1.13.
ADDITIONAL REPORTS
LI
Li
Affiliations
; � Florida institute of Certified Public Accountants
tz American Institute of Certified Public Accountants
& Company, PA Private Companies Practice Section
Tax 0 vision
t..t Certified Public Accountants&Consultants
Page 97 of 102
_ = 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
1 WITH GOVERNMENT AUDITING STANDARDS
:. Board of Commissioners
North Collier Fire Control and Rescue District
1885 Veterans Park Drive
Naples, Florida 34109-0492
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 Auditin
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,
2018,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 May 20,2019.
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 EXPERIENCE®
El
12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333 2090• Fax (239) 333 2097
Page 98 of 102
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
i 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
Auditing 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..
7.6:4 kuvo 4w/on (
TUSCAN&COMPANY, P.A.
Fort Myers, Florida
May 20,2019
Affiliations
x
'1TUSCAN
Florida Institute of Certified Public Accountants
t American Institute of Certified Public Accountants
& Company, PA Private Companies Practice Section
Tax Division
Certified Public Accountants& Consultants
Page 99 of 102
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE
WITH SECTION 218.415,FLORIDA STATUTES
ri
Board of Commissioners
North Collier Fire Control and Rescue District
L ' 1885 Veterans Park Drive
Naples, Florida 34109-0492
L
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, 2018. 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
rrequirements and performing such other procedures as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion.
ElOur 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 30,2018.
I his report is intended solely for the information and use of the North ( oilier lire 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.
‘442,04.1i 44mfril
TUSCAN &COMPANY, P.A.
Fort Myers, Florida
May 20, 2019
INTEGRITY SERVICE EXPERIENCE®
12621 World Plaza I ane. Building 55 • Fort Myers, FL 33907 • Phone• (239) 333 2090 • lax. (239) 333 2097
Affiliations
P s cAN
t Florida Institute of(ertitied Public Accountants
I American Institute or Certified Public Accountants
Company, PA Pnvate Companies Practice Section
z j lax DIN sion
Certified Public Accountants&Consultants
Page 100 of 102
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, 2018 and have issued
our report thereon dated May 20,2019.
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 AuditingStandards
and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports. which
are dated May 20,2019, should be considered in conjunction with this report to management
F 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
r j 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 ......... EXPER1ENCE` '
12621 World tiara I ane, Building 55 . Fort Myer,. FL 33907 • Phone. (239)333 2090 • Fax. (239) 333 2097
Page 101 of 102
• 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.
• Pursuant to Sections 10.554(1)(i)5.b. 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.c., 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
Elknown component special districts required to report within these financial statements.
• 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 May 20, 2019, included herein.
Page 102 of 102
PRIOR YEAR COMMENTS:
There were no financially significant prior year comments.
CURRENT YEAR COMMENTS:
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 7.44,Lite(4) A .
TUSCAN&COMPANY, P.A.
Fort Myers, Florida
May 20,2019
r �
r
E.1
EXHIBIT
NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT
BOARD OF FIRE COMMISSIONERS
M.James Burke•Christopher L.Crossan•Norman L.Feder•J.Christopher Lombardo•James A.Calamari
June 20, 2019
Auditor General's Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
L Tallahassee, FL 32399 1450
We are pleased to note that the audit report for the fiscal year 2017/2018 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
fi
1
1885 Veterans Park Drive Naples,FL 34109■(239)597 3222•Fax(239)597 7082• www.northcollierlire.corn