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Backup Documents 05/25/2021 Item #16I BOARD OF COUNTY COMMISSIONERS 1 6 MISCELLANEOUS CORRESPONDENCE May 25, 2021 1. MISCELLANEOUS ITEMS TO FILE FOR RECORD WITH ACTION AS DIRECTED: A. DISTRICTS: 1) Verona Walk Community Development District: Proposed FY2021/2022 Budget (Oct. 1, 2021 — Sept. 30, 2022) 2) Winding Cypress Community Development District: Proposed FY2021/2022 Budget(Oct. 1, 2021 — Sept. 30, 2022) B. OTHER: 1) Collier County Sheriff's Office: FY2022 Budget Certification 2) Immokalee Fire Control District District Audit FY Ended 09/30/2020 VERONA WALK COMMUNITY DEVELOPMENT DISTRICT 16 I 1 A 1 c/o Special District Services, Inc. 2501 Burns Road, Suite A Palm Beach Gardens,Florida 33410 (561)630-4922 Fax: (561)630-4923 April 16,2021 VIA CERTIFIED MAIL— RETURN RECEIPT REQUESTED Clerk of the Circuit Court Collier County Courthouse 3315 Tamiami Trail East,#102 Naples,Florida 34112-5324 Re: ikaaaga Walk Citratmtinity Development District To Whom It May Concern: Pursuant to Florida law, enclosed please find a copy of the following document relative to the above referenced Community Development District: 1.) Proposed Fiscal Year 2021/2022 Budget(Oct. 1,2021—Sept. 30,2022) If you have any questions or comments,please contact our office. Sincerely, SPECIAL DISTRICT SERVICES, INC. Laura J. Ar er Enclosure - a� Verona Walk Community Development District Proposed Budget For Fiscal Year 2021/2022 October 1, 2021 - September 30, 2022 CONTENTS 1 6 h A 1 I PROPOSED BUDGET II DETAILED PROPOSED BUDGET III DETAILED PROPOSED DEBT SERVICE FUND BUDGET(SERIES 2013) IV DETAILED PROPOSED DEBT SERVICE FUND BUDGET(SERIES 2018) V ASSESSMENT COMPARISON PROPOSED BUDGET 1 6 1 1 A 1 VERONA WALK COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1,2021 -SEPTEMBER 30,2022 FISCAL YEAR 2021/2022 REVENUES BUDGET 0&M ASSESSMENTS 311,297 DEBT ASSESSMENTS-SERIES 2013 518,740 DEBT ASSESSMENTS-SERIES 2018 582,655 ZTHER REVENUES 0 INTEREST INCOME 480 TOTAL REVENUES $ 1,411,172 EXPENDITURES MAINTENANCE EXPENDITURES FIELD INSPECTOR 40,500 VEHICLE-INSURANCE 1,000 VEHICLE-EQUIPMENT(SMALL TOOLS) 1,545 VEHICLE-GAS&MAINTNANCE 2,750 GOLF CART STORAGE 1,200 LAKE SPRAYING(CLARK) 72,500 LAKE WATER QUALITY TESTING(BENCHMARK) 6,000 LAKE LITTORAL SIGNAGE 17,000 LAKE BANK MOWING 10,000 OUTFALL PIPE&STRUCTURE INSPECTION&CLEANING 5 000 STORM PIPE&EROSION REPAIRS 50,000 DREDGING 1 000 MISCELLANEOUS MAINTENANCE 1,25a TOTAL MAINTENANCE EXPENDITURES $ 209 745 ADMINISTRATIVE EXPENDITURES SUPERVISOR FEES 0 PAYROLL TAXES(EMPLOYER) 0 ENGINEERING 14 500 MANAGEMENT 46, 44 SECRETARIAL 4,200 LEGAL 16,500 ASSESSMENT ROLL 10,000 AUDIT FEES 3,800 ARBITRAGE REBATE FEE-SERIES 2013 650 ARBITRAGE REBATE FEE-SERIES 2018 650 INSURANCE 6,500 LEGAL ADVERTISING 2,100 MISCELLANEOUS/CONTINGENCY 2,400 POSTAGE 700 OFFICE SUPPLIES 1,125 DUES&SUBSCRIPTIONS 175 WEBSITE MANAGEMENT 2 000, TRUSTEE FEES-SERIES 2013 4,730 TRUSTEE FEES-SERIES 2018 4,100 "CONTINUING DISCLOSURE FEE-SERIES 2013 1,000 CONTINUING DISCLOSURE FEE-SERIES 2018 0 TOTAL ADMINISTRATIVE EXPENDITURES $ 122,074 TOTAL EXPENDITURES 3 331,819 REVENUES LESS EXPENDITURES $ 1,079,353 BOND PAYMENTS(SERIES 2013) (477,985 BOND PAYMENTS(SERIES 2018) (538,956 BALANCE $ 82,412 COUNTY APPRAISER&TAX COLLECTOR ADMINISTRATIVE COSTS (48,668) DISCOUNTS FOR EARLY PAYMENTS (57,133) EXCESS!(SHORTFALL) $ (43,389) CARRYOVER FROM PRIOR YEAR 43,389 NET EXCESS!(SHORTFALL) S Note:Projected Available Funds Balance As Of 9-30-21 is$550,000 4/ea021 1015 W I DETAILED PROPOSED BUDGET 16I1A 1 r VERONA WALK COMMUNITY DEVELOPMENT DISTRICT • FISCAL YEAR 2021/2022 OCTOBER 1,2021 -SEPTEMBER 30,2022 FISCAL YEAR FISCAL YEAR FISCAL YEAR 2019/2020 2020/2021 2021/2022 REVENUES ACTUAL BUDGET BUDGET COMMENTS 0 8 M ASSESSMENTS 312,162 311,297 311,297 Expenditures Less Interest&Carryover/.925 DEBT ASSESSMENTS-SERIES 2013 518,236 516,740 518,740 Bond Payments/.925 DEBT ASSESSMENTS-SERIES 2018 583,404 582,655 582,655 Bond Payments/.925 OTHER REVENUES 0 a, 0 INTEREST INCOME 746 480 480 Interest Projected At$40 Per Month TOTAL REVENUES $ 1,414,548 $ 1,411,172 16 1,411,172 -- EXPENDITURES MAINTENANCE EXPENDITURES FIELD INSPECTOR 39,909 39,000 40,500t$1,500 Increase From 2020/2021 Budget VEHICLE-INSURANCE 578 1,000 1,0004No Change From 2020/2021 Budget VEHICLE-EQUIPMENT(SMALL TOOLS) • 0 1,545' 1,545 No Change From 2020/2021 Budget VEHICLE-GAS&MAINTENANCE 813 2,750 2,750 No Change From 2020/2021 Budget GOLF CART STORAGE 1,200 1,200 1,200 No Change From 2020/2021 Budget LAKE SPRAYING(CLARK) I 69,275 72,500 72,500 No Change From 2020/2021 Budget LAKE WATER QUALITY TESTING(BENCHMARK) 5,280 6,000 6,000 No Change From 2020/2021 Budget LAKE LITTORAL SIGNAGE 0 17,000 17,000 No Change From 2020/2021 Budget LAKE BANK MOWING 0 10,000 10,000 No Change From 2020/2021 Budget OUTFALL PIPE&STRUCTURE INSPECTION 6 CLEANING 0 5,000 5,000 No Change From 2020/2021 Budget STORM PIPE&EROSION REPAIRS 0 50,000 50,000 No Change From 2020/2021 Budget DREDGING 0 1,000 1,000 No Change From 2020/2021 Budget MISCELLANEOUS MAINTENANCE 0 1,250 1,250 No Change From 2020/2021 Budget TOTAL MAINTENANCE EXPENDITURES $ 117,066 $ 208,245 $ 209,745 ADMINISTRATIVE EXPENDITURES SUPERVISOR FEES 800 3,000 0 Line Item Eliminated PAYROLL TAXES(EMPLOYER) 81 240 0 Line Item Eliminated ENGINEERING 3,015 14,500 14,500 No Change From 2020/2021 Budget MANAGEMENT 45,264 46,296 46,944 CPI Adjustment SECRETARIAL 4,200 4,200 4,200 No Change From 2020/2021 Budget LEGAL 9,339 16,500 16,500 2020/2021 Expenditures Through Feb 2021 Were$3,646 ASSESSMENT ROLL 10,000 10,000 10000 As Per Contract _ AUDIT FEES 3,600 3,700 3,800 Accepted Amount For 2020/2021 Audit ARBITRAGE REBATE FEE-SERIES 2013 650 650 650 No Change From 2020/2021 Budget ARBITRAGE REBATE FEE-SERIES 2018 650 650 650 No Change From 2020/2021 Budget INSURANCE 5,541 6,300 6,500 Insurance Estimate LEGAL ADVERTISING 2,327 1,700 2,100$400 Increase From 2020/2021 B get MISCELLANEOUS/CONTINGENCY 591 2,400 2,400_No Change From 2020/2021 Budget POSTAGE 240 750 700$50 Decrease From 2020/2021 Budget OFFICE SUPPLIES 402 1,150 1,125$50 Decrease From 2020/2021 Budget DUES&SUBSCRIPTIONS 175 175 175 No Change From 2020/2021 Budget WEBSITE MANAGEMENT 2,000 2,000 2,000 No Change From 2020/2021 Budget TRUSTEE FEES-SERIES 2013 4,730 4,730 4,730 No Change From 2020/2021 Budget TRUSTEE FEES-SERIES 2018 3,709 _4,100 4,100 No Change From 2020/2021 Budget CONTINUING DISCLOSURE FEE-SERIES 2013 1,000 1,000 1,000 No Change From 2020/2021 Budget CONTINUING DISCLOSURE FEE-SERIES 2018 0 0 0 Prager Is No Longer Charging For 2018 Bond TOTAL ADMINISTRATIVE EXPENDITURES $ 98,294 $ 124,041 $ 122,074 TOTAL EXPENDITURES $ 215,349 $ 332,286 $ 331,819 REVENUES LESS EXPENDITURES $ 1,199,199 $ 1,078,886 $ 1,079,363 BOND PAYMENTS(SERIES 2013) (489,013) (477,985) (477,985)2022 P&I Payments BOND PAYMENTS(SERIES 2018) (550,506) (538,956) (538,956)2022 P&I Payments BALANCE $ 159,680 $ 61,946 $ 62,412 COUNTY APPRAISER&TAX COLLECTOR ADMINISTRATIVE COSTS (20,834) (48,668) (48,668)Three And One Hell Percent Of Total Assessment Rot DISCOUNTS FOR EARLY PAYMENTS I (52,471) (57,133) (57,133)Four Percent Of Total Assessment Roll EXCESS/(SHORTFALL) _.$ 86,375 $ (43,856) $ (43,359) CARRYOVER FROM PRIOR YEAR 0 43,856 43,389 Carryover From Prior Year NET EXCESS/(SHORTFALL) $ 86,375 S - 5 - Note:Projected Available Funds Balance As Of 9-30-21 is$550,000 4022021 1016 AM II 1b11A1 DETAILED PROPOSED DEBT SERVICE (SERIES 2013) FUND BUDGET , VERONA WALK COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1,2021 -SEPTEMBER 30,2022 FISCAL YEAR FISCAL YEAR FISCAL YEAR 2019/2020 2020/2021 2021/2022 REVENUES ACTUAL BUDGET BUDGET COMMENTS Interest Income 3,191 150 25 Projected Interest For 2021/2022 NAV Collection _ 489,013 477,985 477,985 Maximum Debt Service Collection Prepaid Bond Collection 13,197 0 0 Prepaid Bond Collection Total Revenues $ 505,401 $ 478,135 $ 478,010 EXPENDITURES Principal Payments(2013A-1) 235,000 240,000 250,000 Principal Payment Due In 2022 Principal Payments(2013A-2) 25,000 25,000 25,000 Principal Payment Due In 2022 Interest Payments(2013A-1) 209,331 197,494 188,606 Interest Payments Due In 2022 Interest Payments(2013A-2) 15,500 13,813 12,688 Interest Payments Due In 2022 Bond Redemption 0 1,828 1,716 Estimated Excess Debt Collections Total Expenditures $ 484,831 $ 478,135 $ 478,010 Excess/(Shortfall) $ 20,570 $ - $ - Series 2013A-1 Bond Refunding Information Original Par Amount= $6,455,000 Annual Principal Payments Due= May 1st Interest Rate= 1.1%-4.375% Annual Interest Payments Due= May 1st&November 1st Issue Date= June 2013 Maturity Date= May 2035 Par Amount As Of 1/1/21 = $4,825,000 16I1A 1 Series 2013A-2 Bond Refunding Information Original Par Amount= $650,000 Annual Principal Payments Due= May 1st Interest Rate= 4.5%-5.0% Annual Interest Payments Due= May 1st&November 1st Issue Date= June 2013 Maturity Date= May 2035 Par Amount As Of 1/1/21 = $255,000 I II U62021 10:16 AM DETAILED PROPOSED DEBT SERVICE (SERIES 2018) FUND BUDGET 1 6 I 1 A 1 VERONA WALK COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1,2021 -SEPTEMBER 30,2022 FISCAL YEAR FISCAL YEAR FISCAL YEAR 2019/2020 2020/2021 2021/2022 REVENUES ACTUAL BUDGET BUDGET COMMENTS Interest Income 259 150 25 Projected Interest For 2021/2022 NAV Collection 550,506 538,956 538,956 Maximum Debt Service Collection Prepaid Bond Collection 7,088 0 0 Prepaid Bond Collection Total Revenues $ 557,853 $ 539,106 $ 538,981 EXPENDITURES Principal Payments 307,000 317,000 328,000 Principal Payment Due In 2022 Interest Payments 236,275 221,146 210,665 Interest Payments Due In 2022 Bond Redemption 0 960 316 Estimated Excess Debt Collections Total Expenditures $ 543,275 $ 539,106 $ 538,981 'Excess/(Shortfall) $ 14,578 $ - $ - Series 2018 Bond Refunding Information Original Par Amount= $7,677,000 Annual Principal Payments Due= May 1st Interest Rate= 3.25%-5.375% Annual Interest Payments Due= May 1st&November 1st Issue Date= March 2018 Maturity Date= May 2037 Par Amount As Of 1/1/21 = $6,963,000 IV 4/612021 10 16 AM Verona Walk Community Development District 1 6 1 1 A 1 a • Assessment Comparison Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Lot 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 Size Assessment* Assessment* Assessment* Assessment* Projected Assessment* Phase One Townhome 26' O&M 5 162.13 3 162.13 3 162.13 S 182.13 $ 162.13 Cayman Debt S 540.00 $ 540.00 S 540.00 $ 540.00 S 540.00 Total 3 702.13 $ 702.13 $ 702.13 3 702.13 $ 702.13 Duplex 36' 0&M S 162.13 $ 162.13 S 162.13 $ 16213 S 162.13 Capri/Carrington DES S 540.00 $ 540.00 $ 540.00 S 540.00 $ 540.00 Total 3 702.13 $ 702.13 S 702.13 $ 702.13 $ 702.13 Single Family 50 0&M $ 162.13 $ 162.13 $ 162.13 S 162.13 $ 1112.13 Oakmont Debt S 635.00 S 635.00 $ 635.00 $ 635.00 $ 635.00 Total -S 797.13 3 797.13 S 797.13 3 797.13 $ 797.13 Single Family 60' 0&M $ 162.13 $ 162.13 $ 162.13 $ 182.13 $ 162.13 Carlyle Deft tt $ 730.00 1 730.00 $ 730.00 $ 730.00 $ 730.00 Total S 892.13 S 892.13 3 892.13 3 892.13 $ 692.13 Phase Two Duplex 36'/SF 40' 0&M $ 162.13 $ 162.13 8 162.13 $ 162.13 $ 1112.13 Capri/Canirgton Dela S 600.00 $ 511.00 $ 511.00 $ 511.00 $ 611.00 Total $ 762.13 $ 673.13 $ 673.13 $ 673.13 $ 673.13 Single Family 40 0&M $ 182.13 S 162.13 S 162.13 $ 162.13 $ 16213 Garden Q2¢1 S 678.00 S 577.00 S 577.00 $ 577.0o $ 577.00 Total , S 840.13 $ 739.13 S 739.13 3 739.13 $ 739.13 Single Family 50 0&M $ 162.13 S 182.13 $ 182.13 $ 162.13 S 162.13 Oakmont ;bpi S 706.00 $ 601.00 8 601.00 S 601.00 $ 601.00 Total $ 868.13 S 763.13 $ 763.13 3 763.13 $ 763.13 Single Family 60 0&M S 162.13 $ 162.13 S 162.13 $ 162.13 $ 162.13 Carlyle jjg}Lt S 812.00 S 691.00 $ 691.00 $ 691.00 S 591.00 Total S 974.13 S 853.13 $ 853.13 $ 853.13 $ 853.13 Single Family 65' 0 8 M $ 182.13 $ 162.13 $ 182.13 $ 182.13 $ 162.13 Estate i7.9bt $ 892.00 S 759.00 $ 759.00 $ 759.00 $ 759.00 Total S 1,054.13 3 921.13 $ 921.13 $ 921.13 S 921.13 •Assessments Include the Following 4%Discount for Early Payments 2%County Property Appraiser Costs 1.5%County Tax Collector Costs Community Information: Phase I Maximum Annual Lot No.of Units Type Front Footage Name Debt Assessment Bond Prepayments Differential Prepaymenr 246 Townhome 26' Cayman $ 540 6 68 350 Duplex 36' Capri/Carrington $ 540 11 0 242 Single Family 50' Oakmont $ 635 7 -35 2Z Single Family 60' Carlyle $ 730 1 1 935 25 34 Phase II Maximum Annual Lot Disclosure No.of Units Type Front Footage Name Debt Assessment Bond Prepayments Differential Prepayment** 443 Duplex/SF 36140' Capri/Carrington $ 511 7 -4 58 Duplex 40' Garden $ 577 0 4 325 SF 50' Oakmont $ 601 7 0 161 SF 60165' Carlyle $ 691 0 0 1? SF 65' Estate $ 759 Q Q 1019 14 0 0 New Bond Prepayers For 2021/2022 •Developer made Bond Prepayment in August 2014 for 34 lot differential(68 Phase 1 Caymans replaced with 34 Oakmonts) •Developer made Bond Prepayment In November 2014 for 1 lot differential(1 Phase 1 Carlyle replaced wlth 1 Oakmont) ••Developer built Carrington Homes on Garden Lots(Karina Street)-Debt Assessments for those lots was$678-now$677. ••Developer made Bond Prepayment in November 2014 for 4 lot disclosure differential(4 40'disclosed at 36'/40'rate) Total Lots Assessed For O&M>:1920 4/S/2021 10:16 AM V WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT c/o Special District Services, Inc. 1 V t 11 A FI 2 2501 Burns Road, Suite A Palm Beach Gardens,Florida 33410 (561)630-4922 Fax: (561) 630-4923 May 6,2021 VIA CERTIFIED MAIL— RETURN RECEIPT REQUESTED Clerk of the Circuit Court Collier County Courthouse 3315 Tamiami Trail East,#102 Naples, Florida 34112-5324 Re: W}yding Cypress C oznm u*uty Development District To Whom It May Concern: Pursuant to Florida law, enclosed please find a copy of the following document relative to the above referenced Community Development District: 1.) Proposed Fiscal Year 2021/2022 Budget(Oct. 1,2021—Sept.30,2022) If you have any questions or comments,please contact our office. Sincerely, SPECIAL DISTRICT SERVICES, INC. c Laura J. Archer Enclosure ibllAC Windin Cypress Community Development District Proposed Budget For Fiscal Year 2021/2022 October 1, 2021 - September 30, 2022 CONTENTS 16 I 1 A 2 I PROPOSED BUDGET II DETAILED PROPOSED BUDGET III DETAILED PROPOSED DEBT SERVICE FUND BUDGET (SERIES 2015) IV DETAILED PROPOSED DEBT SERVICE FUND BUDGET (SERIES 2019) V ASSESSMENT COMPARISON PROPOSED BUDGET 1 6 1 1. A e WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1, 2021 -SEPTEMBER 30,2022 FISCAL YEAR 2021/2022 REVENUES BUDGET O&M Assessments 177,761 Debt Assessments-Series 2015 526,216 Debt Assessments-Series 2019 311,687 Interest Income 180 TOTAL REVENUES $ 1,015,844 EXPENDITURES Supervisor Fees 1,200 Payroll Taxes-Employer 96 Engineering/Inspections 7,500 Preserve Maintenance 79,700 Management 36,588 Legal 15,500 Assessment Roll 5,000 Audit Fees 4,000 Arbitrage Rebate Fee 650 Insurance 5,900 Legal Advertisements 2,000 Miscellaneous 750 Postage 275 Office Supplies 575 Dues&Subscriptions 175 Trustee Fee 7,800 Continuing Disclosure Fee 2,000 TOTAL EXPENDITURES $ 169,709 REVENUES LESS EXPENDITURES $ 846,135 Bond Payments-Series 2015 (486,750) Bond Payments-Series 2019 (288,311) BALANCE 71,074 County Appraiser&Tax Collector Fee (35,040) Discounts For Early Payments (41,134) EXCESS/(SHORTFALL) $ (5,100) Carryover Funds From Prior Year 5,100 NET EXCESS/(SHORTFALL) $ - 4/25/2021 12:06 PM DETAILED PROPOSED BUDGET 1 b 11 A 2 WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1, 2021 -SEPTEMBER 30, 2022 FISCAL YEAR FISCAL YEAR FISCAL YEAR 2019/2020 2020/2021 2021/2022 REVENUES ACTUAL BUDGET BUDGET COMMENTS 0&M Assessments 178,278 177,811, 177,761 Expenditures Less Interest&Carryover/.925 Debt Assessments-Series 2015 526,536 526,216 526,216 Bond Payments/.925 Debt Assessments-Series 2019 311,895 311,687 311,687 Bond Payments/.925 Interest Income 193 180 180 Interest Projected At$15 Per Month TOTAL REVENUES 1,016,902 $ 1,015,894 $ 1,015,844 EXPENDITURES Supervisor Fees 0 1,200 1,200 Supervisor Fees Payroll Taxes-Employer 0 96 96 Projected At 8%Of Supervisor Fees Engineering/Inspections 4,928 8,000 7,500$500 Decrease From 2020/2021 Budget Preserve Maintenance 78,705 79,700 79,700 Fiscal Year 2020/2021 Expenditure Was$75,100 Management 35,280 36,084 36,588 CPI Adjustment Legal 8,736 15,500, 15,500 FY 2020/2021 Expenditure Through Feb 2021 Was$5,818 Assessment Roll 5,000 5,000 5,000 As Per Contract Audit Fees 3,800 3,900 4,000 Accepted Amount Of 2020/2021 Audit Arbitrage Rebate Fee 650 650 650 No Change From 2020/2021 Budget Insurance 5,251 5,900 5,900 Insurance Estimate Legal Advertisements 2,286 1,800 2,000$200 Increase From 2020/2021 Budget Miscellaneous 100 750 750 No Change From 2020/2021 Budget Postage 138 300 275$25 Decrease From 2020/2021 Budget Office Supplies 231 600 575$25 Decrease From 2020/2021 Budget Dues&Subscriptions 175 175 175 No Change From 2020/2021 Budget Trustee Fee 7,740 7,800 7,800 No Change From 2020/2021 Budget Continuing Disclosure Fee 2,000 2,000 2,000 No Change From 2020/2021 Budget TOTAL EXPENDITURES 165,018 $ 169,456 $ 169,709 REVENUES LESS EXPENDITURES 861,884 $ 846,439 $ 846,135 Bond Payments-Series 2015 (495,930) (486,750) (486,750)2022 Principal&Interest Payments Bond Payments-Series 2019 (293,772) (288,311) (288,311)2022 Principal&Interest Payments BALANCE 72,182 71,378 71,074 County Appraiser&Tax Collector Fee (21,521) (35,042) (35,040)Three And One Half Percent Of Total Assessment Roll Discounts For Early Payments (39,531) (41,136) (41,134)Four Percent Of Total Assessment Roll EXCESS/(SHORTFALL) $ 11,130 S (4,800) $ (5,100) Carryover Funds From Prior Year 0 4,800 5,100 Carryover Funds From Prior Year NET EXCESS/(SHORTFALL) $ 11,130 $ - $ - 4,25/2021 12.08 PM I I DETAILED PROPOSED DEBT SERVICE FUND (SERIES 2015) BUDGET 1 b I 1 A e WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1,2021 -SEPTEMBER 30,2022 FISCAL YEAR FISCAL YEAR FISCAL YEAR 2019/2020 2020/2021 2021/2022 REVENUES ACTUAL BUDGET BUDGET COMMENTS Interest Income 447 225 25 Projected Interest For 2021/2022 NAV Tax Collection 495,930 486,750 486,750 Maximum Debt Service Collection 1 Total Revenues $ 496,377 $ 486,975 $ 486,775 EXPENDITURES Principal Payments 135,000 145,000 155,000 Principal Payment Due In 2022 Interest Payments 345,050 336,750 330,406 Interest Payments Due In 2022 Bond Redemption 0 5,225 1,369 Estimated Excess Debt Collections Total Expenditures - $ 480,050 $ 488,975 $ 488,775 Excess/(Shortfall) j$ 16,327 $ - $ - Series 2015 Bond Information Original Par Amount= $7,535,000 Annual Principal Payments Due= November 1st Interest Rate= 4.00%-5.00% Annual Interest Payments Due= May 1st&November 1st Issue Date= December 2015 Maturity Date= November 2045 Par Amount As Of 1/1/21= $6,835,000 III 4/25/2021 12.05 PM DETAILED PROPOSED DEBT SERVICE (SERIES 2019) FUND BUDGET 1 6 I I A 2 WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT FISCAL YEAR 2021/2022 OCTOBER 1,2021 -SEPTEMBER 30,2022 FISCAL YEAR FISCAL YEAR FISCAL YEAR 2019/2020 2020/2021 2021/2022 REVENUES ACTUAL BUDGET BUDGET COMMENTS Interest Income 240 50 25 Projected Interest For 2021/2022 Debt Service Bond Proceeds 293,772 0 0 NAV Tax Collection 0 288,311 288,311 Maximum Debt Service Collection Total Revenues $ 294,012 $ 288,361 $ 288,336 EXPENDITURES Principal Payments 0 75,000 80,000 Principal Payment Due In 2022 _ Interest Payments 251,643 210,344 207,527 Interest Payments Due In 2022 Bond Redemption 0 3,017 809 Estimated Excess Debt Collections Total Expenditures $ 26f,643 S 288,361 $ 288,336 t Excess!(Shortfall) $ 42,369 $ - $ - _ Series 2019 Bond Information Original Par Amount= $4,470,000 Annual Principal Payments Due= November 1st Interest Rate= 3.75%-5.00% Annual Interest Payments Due= May 1st&November 1st Issue Date= February 2019 Maturity Date= November 2049 Par Amount As Of 1/1/21= $4,395,000 IV 4126R021 t2:0e PM WINDING CYPRESS COMMUNITY DEVELOPMENT DISTRICT 1 6 11 A 2 a 1 1 4 ASSESSMENT COMPARISON Fiscal Year Fiscal Year Fiscal Yea/ Fiscal Year 2018/2019 20192020 2020/2021 2021/2022 Assessment- Assessment' Assessment' Projected Aauuarsnr 0&M For Phases 1 8 2 SF Villas 3 164.53 $ 232.18 $ 232.13 3 23207 Debt For Phases 1 8 2 SF Vass 3 835.00 $ 849.00 $ 849.00 3 049.00 Total For Phases 1 8 2 SF Villas $ 909.53 $ 1,061.18 $ 1,061.13 3 1,081.07 O 8 M For Phases 1 8 2 SF 50 Units 3 164.53 3 232.18 $ 232.13 3 232.07 Debt For Phases 1 8 2 SF 50'Unitt $ 939.00 3 954.00 $ 964.00 $ 964.00 Total For Phases 1 8 2 SF 50'Units $ 1,103.53 3 1,126.111 3 1,186.13 3 1,180.07 0 8 Its For Phases 1 8 2 SF 85'Units $ 164.53 3 232.18 $ 232.13 $ 232.07 poet For Phases 1 8 2 SF 65'Units 3 1.043.00 8 1,060.00 $ 1,060.00 1 1,060.00 Total For Phases 1 8 2 SF 66'Units 3 1,207.53 3 1,292.18 $ 1,29213 $ 1,292.07 0 8 M For Phase 3 SF 50'Units 3 3 232.18 $ 232.13 3 232.07 Debt For Phase 3 SF 50'Vn8t $ $ 1,429.00 $ 1,429.00 $ 1,429.00 Total For Phase 3 SF 50'Untts 3 - $ 1,661.16 $ 1,601.13 3 1,661.07 D 8 M For Phase 3 SF 65'Units $ 3 232.18 $ 232.13 3 232.07 Debt For Phase 3 SF 65'Unisit 3 $ 1,544.00 $ 1,644.00 3 1,544.00 Total For Phase 3 SF 65'Undo $ - $ 1,770.18 3 1,776.13 3 1,776.07 •Assessments Include the Followlna: Note: 4%Discount for Early Payments Changes Si Debt Assessment 2%County Tan Collector Fee Rates From 15/19 to 1920 Doe To 1.5%County Property Appraiser Fee Fee.Rate Adjustment In Updated Methodologies.Debt Rasa Did Not Incase.Property Appnlsor Fee.Were In:Fidad In 04M. Community IMormstlon: ?hues 1 8 Z. EMU:. Not. Phases 1 8 2: 554 Unite Vies: 152 Units Visa: 0 Unita Developer made Phase 3 Bond Prepayment Phase 3' 212 UM* 50'Lots: 270 Lints 50'Lots: 136 Units Si Jenury 2020 for 1 lot dttsraneel Total: 769 Units 65'Lots 132 Units 65'Lots: 76 Unns (1 56 Lot Replaced Otter I 50'Lot) Total: 554 Units Total: 212 UrW 5/5/2021 10:34 AM v Collier County Sheriffs Office 3319 Tamiami Trail East Bldg.J.Naples,FL 34112 u SHERIFF KEVIN J. RAMBOSK 239.774.4434 o �, , , www.colliersheriforg 44 j C 161181 May 1, 2021 RECEIVED Honorable Members of the Board of County Commissioners 3299 Tamiami Trail East APR 2 8 2021 Naples, Florida 34112 OFFICES OF CuLUER COUNTY Enr_c+n r r^•�i?N YCOMM.AMISSIONER3c Dear Commissioners: I am submitting the budget certification for fiscal year 2022 in the amount of$215,522,800 to fund the services provided by the Collier County Sheriff's Office including Law Enforcement and Community Services, the County Jail, Court Security and Public Safety Communications, as required by F.S. Chapter 30.49(2)(a). Our budget for fiscal year 2022 represents a 2.87% increment over our fiscal year 2021 budget. In addition, our fiscal year 2022 budget includes funding for the fourth year of our continuing school safety mandate. We have been able to maintain a high level of service to our community despite rising costs to our operation. Our fiscal year 2022 budget request reflects our preparation and planning for what may be unprecedented growth in Collier County. We must do this while facing cost of living challenges, particularly housing, when attracting and retaining personnel. The COVID-19 pandemic has impacted our operations over the last year. With uncertainties still remaining, COVID-19 may continue to impact our budget. We are making progress on replenishing capital equipment however, keeping at the forefront of technological change continues to impact our resource allocation. We have plans in place to handle the ever changing challenges that are presented to our Agency. The dedication and commitment of the professional men and women of the Collier County Sheriff's Office with the support of our community enables us to do so. We provide excellence in service and programs for our youth, citizens and visitors who enjoy this beautiful County. We continue to maintain one of the lowest crimes rates in the entire state, the lowest it has been since 1971. This creates significant value for our community and contributes to Collier County being on the most desirable places to live work and play. The quality of life and levels of safety in our schools and our community is unique, revered and expected by our residents and visitors. On behalf of the Collier County Sheriff's Office, I would like to thank you for your support of public safety. Together we will continue this mission as we prepare for the future. Respectfully submitted, • 0 sod Kevin J Rambosk Sheriff, Collier County .0" E 'a•+ Collier County Sheriffs Office 3319 Tamiami Trail Fast Bldg.1.Naples, FL 34112 .JN,TY ,.1' ' SHERIFF KEVIN J. RAMBOSK 239.774.4434 0 a' , m ,. www.colliersheriforg y s r. 4 yF [C *j F �'1 Ylll J• RECEIVED 16 I 1 B 1 Honorable Members of the Board of Collier County Commissioners APR 2 8 2021 3299 Tamiami Trail East Naples,FL 34112-4902 OFFICES OF COLLIER COUNTY Re: Certification of Proposed Budget for Fiscal Year 2022 SOAR!)OF CO�r "Y COMMISSIONERS Dear Commissioners: Pursuant to the requirements of Florida Statute Chapter 30.49(2)(a),I do herby submit and certify the following proposed budget for the operations of the Collier County Sheriff's Office for the fiscal year beginning October 1,2021 and ending September 30,2022. TYPE OF EXPENDITURE COURTS LAW CORRECTIONS TOTAL BUDGET ENFORCEMENT Salary of Sheriff $ - $ 166,000 $ - $ 166,000 Salary of Deputies& $ 4,634,500 $ 127,102,300 $ 39,822,900 $ 171,559,700 Assistants Expenses—Other than $ 192,100 $ 25,280,800 $ 10,095,300 $ 35,568,200 Salaries Equipment $ - $ 4,758,600 $ 425,000 $ 5,183,600 Investigations $ - $ 75,300 $ - $ 75,300 Total Before Reserves $ 4,826,600 $ 157,383,000 $ 50,343,200 $ 212,552,800 Add: School Safety Mandate $ 3,000,000 $ 3,000,000 $ 215,552,800 Reserves to be budgeted in the County's General Fund Reserve for Contingency based on 2.5%of the Sheriff's Operating Budget($215,552,800),which equates to$5,388,800. Respectfully submitted, ' 0414 Kevin J Rambosk Sheriff,Collier County Before me,on this 28th day of April,2021,appeared Kevin J.Rambosk,Sheriff of Collier County,Florida,who states that to the best of his knowledge and belief the above established amounts are both reasonable and nec ssary for the operation of the Collier County Sheriff's Office for the 2022 Fiscal Year. i Notary Pu is at large State of Florida , ► anti; ,: WENDY S.CHAFFEE , • :,3 MY COMMISSION 8 GG 178055 :2,-%.r,/ EXPIRES:March 22,2022 "��or r;;,," Bonded Thru Notary Public Underwriters VI - 1 6 I 1 6 2 • Immokalee Fire Control District 502 New Market Road East, Immokalee, FL. 34142 41110 Michael J. Choate, Fire Chief April 21, 2021 Mr. Derek Johnson, General Accounting Manager Clerk of the Circuit Court, Finance Department 3299 Tamiami Trail East, #403 Naples, FL 34112 Dear Mr. Johnson: Enclosed please a copy of the District's audit for the fiscal year ended 9-30-20. Please contact me if you have any questions or would like to receive an electronic copy of the audit. Very truly yours, BECKY BRONSDON Chief Financial Officer Enclosures Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227 Fax(239)657-9489 1611B2 IMMOKALEE FIRE CONTROL DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH ADDITIONAL REPORTS YEAR ENDED SEPTEMBER 30,2020 1 { 1 6 I 1 B 2 TABLE OF CONTENTS Page(s) INDEPENDENT AUDITOR'S REPORT 1-3 MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-vii BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of Net Position 4 Statement of Activities 5 FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet-Governmental Funds 6 Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Position 7 Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds 8 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance-Governmental Funds to the Statement of Activities 9 NOTES TO THE FINANCIAL STATEMENTS 10-52 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A 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 53 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Detailed Statement 54-56 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Impact Fee Fund-Summary Statement 57 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 58 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 59 OTHER REQUIRED SUPPLEMENTARY INFORMATION Schedule of District Proportionate Share of the Net Pension Liability-Florida Retirement System(FRS)Pension Plan 60 Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan 60 Schedule of District Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan 61 Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan 61 Notes to the Required Supplementary Information 62-63 Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No.75 and Related Notes to the Schedule 64 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 65-66 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance 67-69 Schedule of Findings and Questioned Costs-Federal Awards 70-71 Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 72 Independent Auditor's Report to Management 73-75 Management's Response to Independent Auditor's Report to Management Exhibit 1 Impact Fee Affidavit Exhibit 2 1 6 I 1 B 2 Affiliations TUSCAN Florida Institute of Certified Public Accountants } American Institute of Certified Public Accountants & Company, PA Pnvate Companies Practice Section Tax Division Certified Public Accountants&Consultants INDEPENDENT AUDITOR'S REPORT Board of Commissioners Immokalee Fire Control District 502 East New Market Road Immokalee,Florida 34142 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and each major fund of Immokalee Fire Control District(the"District")as of and for the year ended September 30,2020,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 jor 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 Florida Retirement System Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(HIS)as of and for the year ended June 30,2020. 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 30,2020,and for the year then ended.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 Immokalee Fire Control District's government-wide financial statements,is based on the report 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 I Inited States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the District's preparation and fair 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 the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion,based on our audit and the report of the other auditors,the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities and each major fund of Immokalee Fire Control District as of September 30,2020,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. INTEGRITY SERVICE EXPERIENCE® 12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090• Fax: (239)333-2097 16I1B2 Board of Commissioners Immokalee Fire Control District Page 2 Emphasis of Matter On March 27,2019,the District acquired land adjacent to Station 30 to be used for the construction of a new fire station.The land was purchased with grant funds,which were disbursed directly by Collier County on behalf of the District. As a result,the District failed to record the transaction in the prior year.For the year ended September 30,2020, the District reported a restatement of net position of$263,340 as a result of this correction of an error(see Note L). The auditor's opinion was not modified with respect to this restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages i-vii,Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System(FRS)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan,Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan,Notes to 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(FRS)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan, Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan, Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan,Notes to 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 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)Pension Plan,Schedule of District Contributions-Florida Retirement System(FRS)Pension Plan,Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy(HIS)Pension Plan,Schedule of District Contributions-Health Insurance Subsidy(HIS)Pension Plan,Notes to 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 lmmokalee Fire Control District's basic financial statements. The required supplementary information other than MD&A -budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic financial statements.The required supplementary information other than MD&A-budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the required supplementary information other than MD&A- budgetary comparison information is fairly stated,in all material respects,in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming an opinion on the financial statements of lmmokalee Fire Control District that collectively comprise Immokalee Fire Control District's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards for the year ended September 30,2020 as required by the Title 2 U.S.Code 161 ! B2 Board of Commissioners Immokalee Fire Control District Page 3 of Federal Regulations(CFR)Part 200,"Uniform Administrative Requirements,Cost Principles,and Audit Requirements for Federal Awards"is presented for purposes of additional analysis and is not a required part of the basic financial statements.Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the accompanying Schedule of Expenditures of Federal Awards for the year ended September 30,2020 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 an opinion on the financial statements that collectively comprise the District's basic financial statements. The Exhibit 1-Management's Response to Independent Auditor's Report to Management and Exhibit 2 Impact Fee Affidavit are not a required part of the basic financial statements but are required by Government Auditing Standards and Rules of the Auditor General,Section 10.557(3Xm),respectively. 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. Other Reporting Required by Section 218.415,Florida Statutes In accordance with Section 218.415,Florida Statutes,we have also issued a report dated February 16,2021 on our consideration of Immokalee Fire Control 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 Immokalee Fire Control 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 February 16,2021 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 Immokalee Fire Control District's internal control over financial reporting and compliance. 7‘).4,Aiiesit) 41 11044fio•444 , A. ( TUSCAN&COMPANY,P.A. GI Fort Myers,Florida February 16,2021 I611B2 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) 161113 2 immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 General Information The Immokalee Fire Control District's (the "District") discussion and analysis is designed to assist the reader in focusing on significant financial issues, provide an overview of the District's financial activity, identify changes in the District's financial ability to address the next and subsequent fiscal years challenges, identify any material deviations from the approved budget, and identify individual fund issues and concerns. Management's Discussion and Analysis (MD&A) is intended to serve as an introduction to the District's basic financial statements which are composed of 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. It is designed to focus on the current fiscal year's activities, resulting changes and currently known facts, and should be read in conjunction with the District's financial statements. Fiscal Year Highlights As expected, the District's financial position decreased during the fiscal year ended September 30, 2019 by$762,509 substantially due to recording the increase in pension costs of$418,374 and the cost of OPEB of$23,194 and the recording of the sale and lease back of three (3) staff vehicles of$87,493. As expected, the District's financial position increased during the fiscal year ended September 30, 2020 by$3,264,160 substantially due to the use of$3,424,885 of impact fees for construction of Station #32 and CARES Act money of$1,000,000. Effective September 30, 2015, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions (Statement No. 68). The implementation of this standard required the District to annually report its actuarially determined net pension liability in the government-wide financial statements. It also requires additional disclosure in the notes related to the } financial statements. Effective September 30, 2018, the District adopted the provisions of Governmental Accounting Standards Board Statement No. 75 "Accounting and Financial Reporting for Post Employment Benefits Other Than Pensions (OPEB)"(Statement No. 75). This accounting standard requires the District to annually report its actuarially determined net OPEB liability. 1611B2 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances in a manner similar to a private-sector business. The statements combine and consolidate governmental fund short-term spendable resources with capital assets and long-term obligations. The statements include a Statement of Net Position and a Statement of Activities that are designed to provide consolidated financial information about governmental activities of the District presented on the accrual basis of accounting. The Statement of Net Position presents information on all of the District's assets and liabilities, with the difference between the two reported as net position. Over time, the increases or decreases to net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The government-wide financial statements can be found on pages 4 and 5 of this report at September 30: 2020 2019 Assets: Current Assets $ 6,742,352 $ 7,784,493 Capital Assets, Net of Depreciation 5,965,845 2,298,452 Total Assets 12,708,197 10,082,945 Deferred Outflows of Resources 2,021,872 2,021,392 Liabilities: Accounts Payable and Other Current Liabilities 455,930 39,486 Unearned Revenue-impact fees 3,510,340 5,743,342 Long Term Liabilities 7,665,735 6.516.317 Total Liabilities 11.632,005 12,299.145 Deferred Inflows of Resources 125.285 359,913 Net Position: Net Investment in Capital Assets 5,012,607 1,464,364 Unrestricted Net Assets (Deficit) (2,039,828) (2,019,085) Total Net Position $ 2,972.779 $ (554,721 The Statement of Activities presents information showing how the District's net position changed during the fiscal years. The focus is on both gross and net costs of various activities that are supported by the District's ad valorem tax and other revenues. Thus, ii 1611B2 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 Government-wide Financial Statements (Continued) revenues and expenses are reported in this Statement for some items that will only result in cash flows in a future fiscal period (e.g. uncollected taxes earned). This Statement is intended to summarize and simplify the user's analysis of the cost of various governmental services. An increase or decrease in net position may be an indication of whether the District's financial health is improving or deteriorating. The following reflects the revenues, expenses and changes in financial position for the years ended September 30: 2020 2019 Revenues: Ad Valorem Taxes $4,193,763 $ 3,920,526 Interest Income 82,066 149,070 Grant Revenue 1,000,000 6,012 Impact Fees 3,424,885 252,619 Other Revenue 74,703 74,301 Total Revenue 8,775,417 4,402,528 Expenses Public Safety Expenses 5,511,257 5,165,037 Change in Net Position 3,264,160 (762,509) Net Position (Deficit) —Beginning, As Originally Stated (554,721) 207,788 Prior Period Adjustment—Land* 263.340 - Net Position (Deficit)— Beginning, As Restated (291,381) 207,788 Net Position (Deficit)- Ending of the fiscal year $ 2,972,7 9 $ (554.721) Both of the financial statements distinguish the functions of the District that are principally supported by ad valorem taxes and intergovernmental revenues. The governmental activities of the District are for public safety. *Land intended to be used for Station #30 rebuild was acquired via grant and paid directly to the seller by Collier County. Therefore, resulting in the District not recording the land acquisition in FY 19. General Revenues During fiscal year 2019, the District received $497,440 more in ad valorem tax dollars over the prior fiscal year due to an increase in assessable value of property within the 116 16I1B2 . Immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 Government-wide Financial Statements (Continued) District. This represents a 15% increase. Other revenues, however, decreased over the prior fiscal year due principally to the SAFER Grant ending. During fiscal year 2020, the District received $273,237 more in ad valorem tax dollars over the prior fiscal year due to an increase in assessable value of property within the District. This represents a 7% increase. Other revenues also increased $4,090,537 net over the prior fiscal year due principally to a $1,000,000 CARES Act grant and use of impact fees of$3,424,885. Expenses During the fiscal year of 2019 expenses only slightly increased by $53,832 vs. the prior fiscal year due to increases in operating costs. Personnel related and operating costs were up in 2019 due to pension and OPEB costs. During the fiscal year of 2020 expenses increased by$346,220 vs. the prior fiscal year due to increases in costs. These costs included an increase in pension liability and OPEB costs and interest expense related to debt service. Net Position During fiscal year 2019, net position decreased by ($762,509). During fiscal year 2020, net position increased by $3,264,160. Liabilities During the year ended September 30, 2019, the District entered a capital lease of $764,074 for a Pierce Velocity pumper truck. During the year ended September 30, 2020, the District entered a capital lease of $231,713 for communication equipment. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds Governmental funds are used to account for essentially the same functions reported as iv 1 6 I 1 B 2 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 Governmental Funds (Continued) governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the short-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The District maintains two governmental funds, the General Fund and the Special Revenue Fund for impact fees. Each fund's activity is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. These statements can be found on pages 6 and 8 of this report. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements and can be found beginning on page 10 of this report. General Fund Budgetary Highlights The District adopts an annual appropriated budget for each of its governmental funds. The most significant budget variance for the year ended September 30, 2019 was due to health insurance actual cost being less than budgeted by approximately$47,000. The actual expenditures in the General Fund were $2,054,295 less than the final amended budget. The actual expenditures were less than budget in general due to not having to use any reserves to cover expenditures. The District adopts an annual appropriated budget for each of its governmental funds. The most significant budget variance for the year ended September 30, 2020 was due to entering the capital lease for communication equipment. The actual expenditures in the General Fund were $1,929,473 less than the final amended budget. The actual expenditures were less than budget in general due to not having to use any reserves to cover expenditures. The significant difference between the original and final budget was the adjustment of the carry forward to the prior year audited balance. v 1 6 I 1 B 2 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 Capital Assets The following is a schedule of the District's capital assets at September 30: Capital Assets September 30 _..........2020 __. ._._.. 2019____._. Capital Assets not being depreciated Land 3 378.256 S 114,916 Construction in progress 4,230,658 713,064 Total Capital Assets not being depreciated v4,808,914 827,980 Capital Assets being depreciated Buildings and building improvements 455,967 455,987 Machinery equipment 1,444,096 1,203,816 Vehicles 2 845,411 2,845,411 Total Capital Assets being depreciated 4 745,474 4,505,194 Less: Accumulated Depreciation (3,388,543) (3,034,722) Capital Assets,being deprec*eted.net 1,358,931 1,470,472 Capital Assets.Net 5 5.965.845 S 2,298.452 The District purchased capital assets during the year ended September 30, 2019 in the amount of$772,901 which consisted substantially of a new pumper truck. The District also sold and leased back three (3) staff vehicles. The District also incurred costs related to construction planning of the new Ave Maria station in the amount of $353,020, fi During the year ended September 30, 2020, the District purchased capital assets of $3,766,970 which consisted of construction in progress of$3,517,594 related to new stations, $231,713 in communication equipment and $17,663 in various other equipment. Long Term Liabilities The following is a summary of changes in long-term liabilities for the year ended September 30: 2020 2019 Not pension liability- FRS 5,124,266 4,053,007 Net pension liability- HIS 724,859 689,001 Compensated absences 448,471 409,969 Capital leases 953,238 834,088 Net OPEB liability 541,364 530,252 $ 7,792,198 $ 6,516,317 VI 1 6 I 1 B 2 Immokalee Fire Control District Management's Discussion and Analysis September 30, 2020 Economic Factors and Next Year's Budget Rates The following were factors considered when next year's budget (2020-2021) was prepared: • The estimated property taxes increased by approximately $443,000 or 10.79% for budgeting purposes for 2021 as compared to 2020. The millage rate stayed consistent at 3.75 mills for the fiscal year ending September 30, 2021. The District continues with the construction of the Ave Maria Fire Station #32 during FY 2021. The District is also moving forward with design and construction of Station #30 in downtown Immokalee. 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: Immokalee Fire Control District, 502 East New Market Road, Immokalee, Florida 34142, attention Michael Choate, Fire Chief, telephone (239) 657-2111. vii 16 11B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 4 of 75 STATEMENT OF NET POSITION September 30,2020 Governmental Activities ASSETS Current assets: Cash and cash equivalents S 798,608 Restricted cash and cash equivalents 2,500,470 Investments 1,022,756 Investments-restricted 1,147,913 Due from other governments,including restricted amount of$166,655 1,198,685 Prepaid expenses 73,920 Total current assets 6,742,352 Noncurrent assets: Capital assets: Land 378,256 Construction in progress 4,230,658 Depreciable buildings,equipment and vehicles (net of$3,388,543 accumulated depreciation) _ 1,356,931 Total noncurrent assets 5,965,845 TOTAL ASSETS 12,708,197 DEFERRED OUTFLOWS OF RESOURCES 2,021,872 LIABILITIES Current liabilities: Accounts payable 16,712 Accrued liabilities 8,865 Due to other governments 5,517 Unearned revenue-impact fees 3,510,340 Retainage payable 298,373 Current portion of long-term obligations 126,463 Total current liabilities 3,966,270 Noncurrent liabilities: Noncurrent portion of long-term obligations 7,665,735 TOTAL LIABILITIES 11,632,005 DEFERRED INFLOWS OF RESOURCES 125,285 NET POSITION Net investment in capital assets 5,012,607 Restricted - Unrestricted(deficit) (2,039,828) TOTAL NET POSITION(DEFICIT) $ 2,972,779 The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 5 of 75 STATEMENT OF ACTIVITIES Year Ended September 30,2020 • Governmental Activities EXPENSES Governmental Activities Public Safety-Fire Protection Personnel services $ 4,486,795 Operating expenses 628,128 Depreciation 361,152 Interest and fiscal charges 35,182 TOTAL EXPENSES-GOVERNMENTAL ACTIVITIES 5,511,257 PROGRAM REVENUES Charges for services - Operating/capital grants and contributions 9,115 TOTAL PROGRAM REVENUES 9,115 NET PROGRAM EXPENSES 5,502,142 GENERAL REVENUES Ad Valorem taxes 4,193,763 Impact fees 3,424,885 Interest 82,066 Gain on disposition of capital assets 35,420 Other financial assistance-CARES Act 1,000,000 Other 30,168 TOTAL GENERAL REVENUES 11,766,302 INCREASE(DECREASE)IN NET POSITION 3,264,160 NET POSITION(DEFICIT)-Beginning of year,as restated (291,381) NET POSITION(DEFICIT)-End of the year $ 2,972,779 The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 6 of 75 BALANCE SHEET-GOVERNMENTAL FUNDS September 30,2020 Total General Impact Fee Governmental Fund Fund Funds ASSETS Cash and cash equivalents $ 798,608 $ - $ 798,608 Restricted cash and cash equivalents - 2,500,470 2,500,470 Investments 1,022,756 1,147,913 2,170,669 Due from other governments 1,032,030 166,655 1,198,685 Due from other funds - - - Prepaid expenditures 73,920 - 73,920 TOTAL ASSETS $ 2,927,314 $ 3,815,038 $ 6,742,352 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable $ 14,434 $ 2,278 $ 16,712 Accrued liabilities 8,865 - 8,865 Due to other governments 1,470 4,047 5,517 Due to other funds - -Retainage payable - 298,373 298,373 Unearned revenue-impact fees - 3,510,340 3,510,340 TOTAL LIABILITIES 24,769 3,815,038 3,839,807 FUND BALANCE Nonspendable 73,920 - 73,920 Assigned 1,894,905 - 1,894,905 Unassigned 933,720 - 933,720 TOTAL FUND BALANCE 2,902,545 - 2,902,545 TOTAL LIABILITIES AND FUND BALANCE $ 2,927,314 $ 3,815,038 $ 6,742,352 } The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 7 of 75 RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30,2020 Amount Total fund balance for governmental funds $ 2,902,545 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and,therefore,are not reported in the governmental funds. Capital assets not being depreciated: Land 378,256 Construction in progress 4,230,658 4,608,914 Governmental capital assets being depreciated: Building,Equipment and Vehicles 4,745,474 Less accumulated depreciation (3,388,543) 1,356,931 Deferred outflows and deferred inflows related to pensions are applied to future periods and,therefore,are not reported in the governmental funds. Deferred outflows related to pensions 2,021,872 Deferred inflows related to pensions (125,285) Deferred inflows related to OPEB - 1,896,587 Long-term liabilities are not due and payable in the current period and,therefore,are not reported in the governmental funds. Net pension liability-FRS (5,124,266) Net pension liability-HIS (724,859) Capital leases (953,238) Compensated absences (448,471) Net OPEB liability (541,364) (7,792,198) Elimination of interfund amounts: Due from other funds - Due to other funds Total net position(deficit)of governmental activities $ 2,972,779 The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 8 of 75 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-GOVERNMENTAL FUNDS Year Ended September 30,2020 Impact Total General Fee Governmental Fund Fund Funds REVENUES Ad Valorem taxes $ 4,193,763 $ - $ 4,193,763 Intergovernmental revenues: Federal public safety grants-CDBG 7,500 - 7,500 State firefighter supplemental 1,615 - 1,615 Local government grant - - - Fees: Inspection fees - - - Impact fees - 3,424,885 3,424,885 Miscellaneous: Interest 17,398 64,668 82,066 Other 30,168 - 30,168 TOTAL REVENUES 4,250,444 3,489,553 7,739,997 EXPENDITURES Current Public safety Personnel services 3,565,172 - 3,565,172 Operating expenditures 610,936 17,192 628,128 Capital outlay 294,609 3,472,361 3,766,970 Debt service Principal reduction 112,563 - 112,563 Interest and fiscal charges 35,182 - 35,182 TOTAL EXPENDITURES 4,618,462 3,489,553 8,108,015 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (368,018) - (368,018) OTHER FINANCING SOURCES(USES) Proceeds from issuance of capital lease 231,713 - 231,713 Proceeds from disposition of capital assets 37,185 - 37,185 Other financial assistance-CARES Act 1,000,000 - 1,000,000 TOTAL OTHER FINANCING SOURCES(USES) 1,268,898 - 1,268,898 NET CHANGE IN FUND BALANCE 900,880 - 900,880 FUND BALANCE-Beginning of the year 2,001,665 - 2,001,665 FUND BALANCE-End of the year $ 2,902,545 $ - $ 2,902,545 The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 9 of 75 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30,2020 Amount Net change(excess of revenues over(under)expenditures) in fund balance-total governmental funds $ 900,880 The decrease(change)in net position reported for governmental activities in the statement of activities is different because: Governmental funds report capital outlays as expenditures. However,in the Statement of Activities,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Plus:Expenditures for capital assets 3,766,970 Less:proceeds from disposition of capital assets (37,185) Plus:gain on disposition of capital assets 35,420 Less:current year depreciation (361,152) 3,404,053 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. 1 Proceeds from capital leases (231,713) Repayments(principal retirement)for capital leases 112,563 (119,150) 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. Increase(decrease)in deferred outflows-Pensions 480 (Increase)decrease in deferred inflows-Pensions 234,628 (Increase)decrease in net pension liability-FRS (1,071,259) (Increase)decrease in net pension liability-HIS (35,858) (Increase)decrease in compensated absences,net (38,502) (Increase)decrease in net OPEB liability (11,112) (Increase)decrease in deferred inflows-OPEB - (921,623) Increase(decrease)in net position of governmental activities $ 3,264,160 The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 10 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Immokalee Fire Control District(the "District"), is an independent special district established on May 3, 1955 by Laws of Florida, Chapter 55-30666,as amended. The District has the general and specific powers prescribed by Florida Statutes Chapters 189,633 and Chapter 191. Laws of Florida, Chapter 2000-393 codified, reenacted,amended and repealed its prior enabling acts. Also,as a result of Laws of Florida, Chapter 2000-393,the District's name was changed from Immokalee Fire Control and Rescue District to Immokalee Fire Control District. Laws of Florida, Chapter 2001-330 amended Laws of Florida, Chapter 2000-393 and authorized the District to levy impact fees on new construction within the District. During January 2012,the voters within the District passed a referendum increasing the District's millage cap from 3 mills to 3.75 mills effective for the year ended September 30, 2013 and thereafter. The District was created for the purpose of providing fire control and protection services as well as crash and rescue services for a designated area in eastern Collier County. The District operates three(3)station houses and has approximately 37 employees including part-time employees. The District is governed by an elected five(5)member Board of Commissioners serving staggered four(4) year terms. Summary of Significant Accounting Policies The following is a summary of the significant accounting policies used in the preparation of these basic financial statements. Reporting Entity The District adheres to Governmental Accounting Standards Board(GASB) Statement Number 14, "Financial Reporting Entity" (GASB 14),as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are Component Units" (GASB 39)and GASB Statement Number 61, "The Financial Reporting Entity: Omnibus-An Amendment of GASB Statements No. 14 and No. 34" (GASB 61). These statements require 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 Statement No. 14, as amended,there are no component units required to be included or included in the District's basic financial statements. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 11 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED The basic financial statements of the District are comprised of the following: - Government-wide financial statements -Fund financial statements -Notes to the financial statements Government-wide Financial Statements The government-wide financial statements(i.e.,the Statement of Net Position and the Statement of Activities) report information on all of the activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. General governmental and intergovernmental revenues support the governmental activities. The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government-wide financial statements. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting,revenues,expenses, gains, losses,assets,and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues,expenses, gains,losses,assets,and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33, "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements,rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government-wide financial statements,rather than as expenditures. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 12 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A• ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Government-wide Financial Statements,continued The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase,use or directly benefit from goods, services,or privileges provided by a given function and 2)grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Program revenues are considered to be revenues generated by services performed and/or by fees charged such as inspection fees. During the year ended September 30, 2020,the District contracted another fire district to perform all fire inspections within the Immokalee Fire Control District. As such,the contracted District was entitled to all fire inspection fee revenues. Capital grant revenues are grants from other governmental entities restricted for the purchase of specific capital assets. Fund Financial Statements The District adheres to GASB Statement Number 54, "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54). 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 retained earnings,revenues,and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the District's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds, in aggregate,for governmental funds. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 13 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED 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 enough thereafter to pay liabilities of the current period. The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34, "Basic Financial Statements-and Management's Discussion and Analysis- for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns on the fund financial statements. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures,or expenses,are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made,regardless of the measurement focus applied. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 14 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Measurement Focus and Basis of Accounting,continued Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. For this purpose,the District considers tax revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues susceptible to accrual are property taxes, interest on investments, and intergovernmental revenues. Property taxes are recorded as revenues in the fiscal year in which they are levied,provided they are collected in the current period or within sixty days thereafter. Interest on invested funds is recognized when earned. Intergovernmental revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on the long-term debt, if any,which is recognized when due; and(2)expenditures are generally not divided between years by the recording of prepaid expenditures. When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first,then unrestricted resources as they are needed. Separate financial statements are provided for governmental funds. 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. 1611E12 IMMOKALEE FIRE CONTROL DISTRICT Page 15 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Major Funds The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District,except those required to be accounted for in the Impact Fee Fund. The Impact Fee Fund consists of fees imposed and collected by Collier County based on new construction within the District. The fees are restricted and can only be used for certain capital expenditures and/or the related debt associated with growth within the District. Budgetary Information The District has elected to report budgetary comparison of major funds as required supplementary information(RSI). Investments The District adheres to the requirements of Governmental Accounting Standards Board(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. Capital Assets Capital assets,which include land,construction in progress,buildings, equipment and machinery and vehicles are reported in the government-wide financial statements in the Statement of Net Position. The District follows a capitalization policy which calls for capitalization of all fixed assets that have a cost or donated value of$1,000 or more and have a useful life in excess of one year. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 16 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Capital Assets,continued All capital assets are valued at historical cost, or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Public domain(infrastructure)capital assets consisting of certain improvements other than building, including curbs, gutters and drainage systems,are not capitalized, as the District generally does not acquire such assets. No debt-related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance,repairs and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. Expenditures that materially increase values, change capacities,or extend useful lives are capitalized. Upon sale or retirement, the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenses in the government-wide statements,but rather are capitalized and depreciated. Depreciable capital assets are depreciated using the straight-line method over the following estimated useful lives: Asset Years Buildings 30 Equipment and Machinery 3-20 Vehicles 4-10 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 17 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED • Budgets and Budgetary Accounting The District has adopted an annual budget for the General Fund. The District has also adopted an annual budget for its Special Revenue Fund,the Impact Fee Fund. The District follows these procedures in establishing budgetary data for the General Fund and the Impact Fee Fund: 1. During the summer of each year,the District Fire Chief submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is adopted by approval of the Board of Commissioners. 4. Budget amounts, as shown in these financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. The District did amend the General Fund budget during the year ended September 30,2020 in the amount of$207,263. The District did amend the Impact Fee Fund budget during the year ended September 30, 2020 in the amount of$179,791. 16103 2 IMMOKALEE FIRE CONTROL DISTRICT Page 18 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Impact Fees/Deferred Revenue Through an inter-local agreement,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 collected by Collier County and is remitted to the District. The fee is refundable if not expended by the District within a reasonable period from the date of collection. The District, therefore,records this fee as restricted cash and as deferred 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. Due To/From Other Funds Interfund receivables and payables arise from interfund transactions and are recorded in the fund statements by funds affected in the period in which 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. 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 sick, vacation and personal leave benefits(compensated absences)are expended in the respective operating funds when payments are made to employees. However,the liability for all accrued sick,vacation and personal leave benefits is recorded in the government-wide Statement of Net Position. Encumbrances Encumbrance accounting,under which purchase orders,contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because,at present, it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. 1bi1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 19 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets,liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Net Position de In the government-wi fiial , t hfi restricted. Restricted net positionnanc reflectsstatements thoseno netne assetsposition that as havebeen constraints ed asas to their use externally imposed by creditors,through debt covenants,by grantors, or by law. Fund Balances The governmental fund financial statements the District maintains may include nonspendable, restricted, committed,assigned and unassigned fund balances. Nonspendable fund balances are those that cannot be spent because they are either (a)not in spendable form or(b)legally or contractually required to be maintained intact. Criteria include items that are not expected to be converted into cash,for example prepaid expenses. Restricted fund balance consists of amounts that can be spent only on specific purposes stipulated by constitutional provisions or enabling legislation or externally imposed by creditors, grantors, contributors,or laws or regulations of other governments. The District maintained no restricted fund balances at September 30, 2020. Committed fund balance consists of amounts that represent resources whose use is constrained by limitations the Board (highest decision making)imposes upon itself. These constraints made by the Board remain binding unless removed in the same manner.The District maintained no committed fund balance at September 30, 2020. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 20 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED Fund Balances,continued Assigned fund balance represents the portion of fund balance that reflects the District's intended use of resources. Such intent can only be established by the Board. The District maintained assigned fund balance for various uses at September 30, 2020. The Board's minimum fund balance policy is to maintain not less than three(3)months budgeted expenditures in assigned fund balance as well as other specifically assigned amounts. Unassigned fund balance is the portion of fund balance representing resources in excess of what can properly be classified in one of the other categories. Interfund Transactions The District considers interfund receivables(due from other funds)and interfund liabilities(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 initially made from it that are properly applicable to another fund are recorded as expenditures in the reimbursing funds and as reduction of expenditures in the fund that is reimbursed. 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 Florida Retirement System (FRS)and the Health Insurance Subsidy(HIS) defined benefit plans and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose,benefit payments,(including refunds of employees contributions)are recognized when due and payable in accordance with the benefit terms. The District's retirement plans and related amounts are described in a subsequent note. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 21 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,CONTINUED 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 as an outflow of resources (expense/expenditure)until then. The deferred amount on pensions is reported 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. This separate financial statement element,deferred inflows of resources,represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources(revenue)until that time. The deferred amount on pensions and OPEB is reported only in the government-wide Statement of Net Position. A deferred amount on pensions and OPEB results from the difference in the expected and actual amounts of experience, earnings,and contributions. This amount is deferred and amortized over the service life of all employees that are provided with benefits through the plans except earnings which are amortized over five to seven years. Subsequent Events Subsequent events have been evaluated through February 16,2021,which is the date the financial statements were available to be issued. NOTE B- CASH AND CASH EQUIVALENTS At September 30,2020,cash and cash equivalents were$3,299,078,which included unrestricted cash of$798,608 in the General Fund and restricted cash of $2,500,470,which was held in the Impact Fee Fund. Restricted cash is comprised of impact fees which are restricted for capital asset acquisition and/or improvement due to growth within the District. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 22 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE B- CASH AND CASH EQUIVALENTS,CONTINUED Deposits The District's deposit policy allows deposits to be held in demand deposit or money market accounts and other investments per Florida Statutes, Chapter 218.415(17). All District deposits were held in a financial institution designated as a qualified depository by the State Treasurer. At September 30,2020,the carrying amounts of the District's deposits were $798,608 and$2,500,470 in the General Fund and the Impact Fee Fund, respectively. At September 30, 2020,bank balances were$854,619 and $3,173,127 in the General Fund and Impact Fee Fund,respectively. These deposits were entirely insured by federal depository insurance or by collateral pursuant to the Public Depository Security Act(Florida Statute 280)of the State of Florida. NOTE C- INVESTMENTS Florida Statutes and the District's investment policy authorize investments in the Florida Fixed Income Trust(FL FIT). Specifically,the District's investment policy is consistent with Florida Statutes,Chapter 218.415(17). At September 30,2020,the District's investments in the FL FIT-Cash Pool (CP)consist of the following: Fair Value(NAV)i Cost Carrying Basis Amount General Fund Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 1,022,756 $ 1,022,756 Total investments-General Fund $ 1,022,756 $ 1,022,756 Impact Fee Fund Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 1,147,913 S 1,147,913 Total investments-Impact Fee Fund S 1,147,913 $ 1,147,913 The Florida Fixed Income Trust(FL FIT) Cash Pool (CP)was established in accordance with Florida Statute 163.01 to provide local and state government entities access to diversified,high credit quality strategies for their cash reserves. The Florida Fixed Income Trust(FL FIT)Cash Pool is a floating net asset value(NAV)pool, managed to dollar-in/dollar-out and provides same day liquidity for participants. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 23 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE C- INVESTMENTS,CONTINUED The Florida Fixed Income Trust(FL FIT) Cash Pool (CP) is an external 2a7-like investment pool,which is self administered. The Florida Fixed Income Trust(FL FIT)Cash Pool (CP)is not categorized as it is not evidenced by securities that exist in physical or book entry form. The Florida Fixed Income Trust(FL FIT)Cash Pool are stated at a net asset value(NAV)which approximates fair value,NAV —$1.00. These investments are subject to the risk that the market value of an investment, collateral protecting a deposit or securities underlying an investment will decline and lose value. FL FIT is not required to register(and has not registered)with the SEC;however, the fund is an external investment pool that has historically adopted operating procedures consistent with those required by Florida Statutes. The District's investment in the Florida Fixed Income Trust(FL FIT)Cash Pool(CP) represented approximately less than 1% of the Fund's total investments. At September 30, 2020,the Cash Pool's investments consisted of the following: 40% with commercial paper; 6%with institutional money market deposits and mutual funds;and 54%with certificates of deposit. These short-term investments are stated at fair value. Investment income is recognized as earned and is allocated to participants of the Fund based on their equity participation. The District adheres to GASB Statement No. 79 and where the Fund meets the criteria to make GASB Statement No. 31 disclosures which are required related to its FL FIT Cash Pool investment: Limitation on Participant Contributions and Withdrawals: FL FIT-Cash Pool has no limitations or restrictions on participant withdrawals,does not charge liquidity fees, and has not put in place a redemption gate. Each participant has the ability to withdraw 100 percent of its account balance any business day that the Investment Advisor is open for trading.The Investment Advisor is open for trading,and the funds will settle on the trading date for trades placed prior to 2:00 PM Eastern Time,and trade date plus one business day(T+1)for trades placed after 2:00 PM Eastern Time. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 24 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE C- INVESTMENTS,CONTINUED Investment Income,Unrealized Gains/Losses,and Realized Gains/Losses: FL FIT-Cash Pool follows industry practice and records security transactions on a trade date basis. Dividend and interest income is recognized on an accrual basis. Net investment income is distributed to participants at least monthly. Unrealized and realized gains and losses,if any,are distributed to participants on a daily and monthly basis. Distributions to participants are recorded on the ex-dividend date. Valuation: Fair value of the investments in the FL FIT-Cash Pool is determined on a daily basis. Fair value increases and decreases are included in the change in unrealized gains and losses during the period. Net realized gains and losses on sales of securities are computed based on specific identification. Mutual fund securities are recorded at fair value as determined by using net position value as furnished by a pricing service and the number of shares owned. Redemption Gates: Per the Administrator there are no redemption gates. Liquidity Fees: Per the Administrator there are no liquidity fees. Redemption Fees:As of September 30,2020,there were no redemption fees or maximum transaction amounts,or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Fair Value:The carrying value of the investments held by the District approximate fair value. However,it is the opinion of the management of Florida Fixed Income Trust(FL FIT)it is exempt from GASB Statement No.72 financial hierarchy disclosures. Foreign Currency Risk: Florida Fixed Income Trust(FL FIT)Cash Pool is not exposed to foreign currency risk during the year ended September 30,2020. Securities Lending: Florida Fixed Income Trust(FL FIT)Cash Pool did not participate in securities lending program during the period October 1,2019 through September 30, 2020. Florida Fixed Income Trust(FL FIT)Cash Pool does provide separate audited financial statements for the year ended June 30,2020. At September 30,2020, the District reported Florida Fixed Income Trust(FL FIT) Cash Pool investments of$2,170,669. The Florida Fixed Income Trust(FL FIT) Cash Pool carried a credit rating of AAAf/S 1+ by Fitch Rating and had a dollar weighted average days to maturity(WAM)of 127 days at September 30,2020. The Cash Pool's duration is as follows: expected target duration 0-.5 years;effective duration of.25 years. Rule 2a7 allows funds to use a constant of$1.00 per share. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 25 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE D- DUE TO/FROM OTHER GOVERNMENTS Due from other governments at September 30,2020,are as follows: Description General Fund Collier County Tax Collector $ 32,030 Collier County BOCC-CARES Act 1,000,000 1,032,030 Impact Fee Fund Collier County 166,655 $ 1,198,685 Management of the District believes the due from other governments amounts to be fully collectible. NOTE E- DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30,2020,are as follows: Due From Due To Other Funds Other Funds General Fund: Impact Fee $ - $ - Total General Fund - - Special Revenue Fund: Impact Fee: General - - Total Special Revenue Fund - - ' Total $ - $ - 1 Interfund receivables and payables were eliminated for presentation purposes in the Statement of Net Position at September 30,2020. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 26 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE F- CAPITAL ASSETS ACTIVITY The following is a summary of changes in capital assets activity for the year ended September 30,2020: Balance Balance October 1 increases/ Decreases! Adjustments/ September 30 2019 Additions Deletions Reclassifications 2020 Capital Assets Not Being Depreciated: Land $ 378,256 $ - $ • $ - $ 378,256 Construction in Progress 713,064 3,517,594 • 4,230,658 Total Capital Assets Not Being Depreciated 1,091,320 3,517,594 4,608,914 Capital Assets Being Depreciated: Buildings 455,967 - - 455,967 Equipment&Machinery 1,203,816 249,376 (9,096) - 1,444,096 Vehicles 2,845,411 - - - 2,845,411 Total Capital Assets Being Depreciated 4,505,194 249,376 (9,096) - 4,745,474 Less Accumulated Depreciation: Buildings (349,592) (11,500) - - (361,092) Equipment&Machinery (775,596) (157,441) 7,331 - (92S,706) Vehicles (1,909,534) (192,211) - - (2,101,745) Total Accumulated Depreciation (3,034,722) (361,152) 7,331 - (3,388,543) Total Capital Assets Being Depreciated,Net 1,470,472 (111,776) (1,765) - 1,356,931 Capital Assets,Net $ 2,561,792 $3,405,818 $ (1,765) $ - 5,965,845 Related debt (953,238) Net investment in capital assets $ 5,012,607 Depreciation expense was charged to the following functions during the year ended September 30, 2020: Amount General Government $ 361,152 Total Depreciation Expense $ _ 361,152 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 27 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE F- CAPITAL ASSETS ACTIVITY,CONTINUED The District has capital assets held under capital leases with a total cost of$1,118,934 at September 30,2020.The capital assets held under capital lease had accumulated depreciation of$271,488 and depreciation expense of$166,480 as of and for the year ended September 30,2020. NOTE G • LONG-TERM LIABILITIES The following is a summary of changes in long-term liabilities for the year ended September 30,2020: Balance Balance Amounts October 1 Retirements/ September 30 Due Within 2019 Additions Adjustments 2020 One Year Net pension liability-FRS $ 4,053,007 $ 1,071,259 $ - $ 5,124,266 $ Net pension liability-HIS 689,001 35,858 - 724,859 - Capital leases-3 vehicles 70,014 - (19,843) 50,171 19,843 Capital leases-pumper 764,074 - (72,699) 691,375 75,747 Capital leases-radios - 231,713 (20,021) 211,692 30,873 Construction loan(Sta 32) - - - - - Compensated Absences 409,969 38,502 - 448,471 Net OPEB Liability 530252 11,112 - 541,364 - $ 6,516,317 $ 1,388,444 $ (112,563) $ 7,792,198 $ 126,463 The following is a summary of the long-term obligations at September 30, 2020: pk Amount Net pension obligation-FRS pension plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida Retirement Plan. $ 5,124,266 Net pension obligation-HIS plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida Retirement Plan. 724,859 The District entered into a five year$89,857 capital lease agreement.Monthly payments are$1,654 and are interest free.Payments began on March 20,2018 with a final payment due February 20,2023.The lease agreement is collateralized by the respective three vehicles. 50,171 The District entered into a eight year$764,074 capital lease agreement.Annual payments are$104,731 including fixed interest of 4.19%.Payments began on January 7,2020 with a final payment due January 7,2027.The lease agreement is collateralized by the respective pumper truck 691,375 The District entered into a seventy-five(75)month$231,713 capital lease agreement. Initial payment of$23,171,then six(6)annual payments of$42,135 including fixed interest of 5.32%.Payments began on October 1,2019 with a final payment due October 1,2025.The lease agreement is collateralized by the respective equipment. 211,692 1611B2 IMMOKALEE FIRE CONTROL DISTRICT Page 28 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE G• LONG-TERM LIABILITIES,CONTINUED The District received a$5,500,000 loan commitment on March 2,2020 to fund the construction of Station 32.The loan is payable in twelve(12)monthly payments of interest only,followed by one hundred eighty(180)payments of principal and interest calculated at the closing date of the loan.No draws on the loan have been taken as of September 30,2020. - Non-current portion of compensated absences. Employees of the District are entitled to paid leave(sick,vacation and comp time)based on length of service and job classification. 448,471 Net OPEB liability-actuarially determined-GASB No.75. 541,364 Total long-term liabilities 7,792,198 Current portion (126,463) Noncurrent portion $ 7,665,735 The annual debt service requirements at September 30,2020,were as follows: Years Ending Total Total September 30 Principal Interest Total 2021 $ 126,463 $ 40,246 $ 166,709 2022 131,281 35,429 166,710 2023 126,959 30,390 157,349 2024 121,746 25,121 146,867 2025 127,257 19,610 146,867 Thereafter 319,532 21,665 341,197 Total capital lease 953,238 172,461 1,125,699 Net pension liability-FRS 5,124,266 - 5,124,266 Net pension liability-HIS 724,859 - 724,859 Accrued compensated absences-vacation 448,471 - 448,471 Net OPEB obligation 541,364 - 541364 Total long-term debt $ 7,792,198 $ 172,461 $ 7,964,659 Interest expense related to the capital leases payable was $35,182 for the year ended 1 September 30, 2020. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 29 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN 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 are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services,Division of Retirement, and consists of two cost-sharing, multiple-employer defined benefit plans(Pension and HIS Plans)and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements,required supplementary information,actuarial report,and other relevant information dated June 30,2020,is available from the Florida Department of Management Services'Website (www.dms.myflorida.com). The District's total pension expense, $1,388,978 for the year ended September 30, 2020,is recorded in the government-wide financial statements. Total District actual retirement contribution expenditures were$516,969, $499,843 and$489,104 for the years ended September 30,2020,2019 and 2018,respectively. The District contributed 100%of the required contributions. 16 I ! B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 30 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED FRS Pension Plan Plan Description. The FRS Pension Plan("Plan") is a cost-sharing,multiple- employer defined benefit pension plan,with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class-Members of the FRS who do not qualify for membership in the other classes. Senior Management Service Class(SMSC)- Members in senior management level positions. Special Risk Class-Members who are employed as certified firefighters and meet the criteria to qualify for this class. Elected Officials- Members who are elected by the voters within the District boundaries. Employees enrolled in the Plan prior to July 1,2011,vest at six years of creditable service and employees enrolled in the Plan on or after July 1,2011,vest at eight years of creditable service. All vested members,enrolled prior to July 1,2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service,except for those members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the Plan on or after July 1,2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Members of both Plans (Pension and HIS)may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement,disability,death benefits, and annual cost of living adjustments to eligible participants. 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 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 31 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED FRS Pension Plan,continued may participate in DROP for a period not to exceed 60 months after electing to participate. During the period of DROP participation,deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided. Benefits under the Plan are computed on the basis of age, and/or years of service, average final compensation,and credit service. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011,the average final compensation is the average of the five highest fiscal years'earnings; for the members initially enrolled on or after July 1,2011,the average final compensation is the average of the eight highest fiscal years'earnings. The total percentage value of the benefit received is determined by calculating the total value of all service,which is based on retirement plan and/or the class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. The following chart shows the percentage value of each year of service credit earned: Class,Initial Enrollment,and Retirement Age/Years of Service %Value Regular Class and elected members initially enrolled before July 1,2011 Retirement up to age 62,or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class and elected members initially enrolled on or after July 1,2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Special Risk Regular Service from December 1, 1970 through September 30, 1974 2.00 Service on or after October 1, 1974 3.00 Senior Management Service Class 2.00 Elected Officers'Class 3.00 16 11B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 32 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED FRS Pension Plan,continued As provided in Section 121.101,Florida Statutes, if the member is initially enrolled in the FRS before July 1,2011,and all service credit was accrued before July 1,2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011,and has service credit on or after July 1, 2011,there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after July 1,2011,will not have a cost-of-living adjustment after retirement. Contributions. The Florida Legislature establishes contribution rates for participating employers and employees. Contribution rates during the year ended September 30, 2020 were as follows: Percent of Gross Salary* Class(2) Employee Employer(I) Employer(3) Florida Retirement System,Regular 3.00 10.00 8.47 • Florida Retirement System,Senior Management Service 3.00 27.29 25.41 Florida Retirement System,Special Risk 3.00 24.45 25.48 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 16 98 14.60 Florida Retirement System,Reemployed Retiree (2) N/A Nqt Florida Retirement System,Elected Official 3.00 49 18 48.82 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 the Investment Plan. Rates for 7/1/20-6/30/21 (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 7/1/19-6/30/20 • As defined by the Plan 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 33 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED FRS Pension Plan,continued Pension Liabilities, Pension Expense,and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Pension Plan. At September 30,2020,the District reported a pension liability of$5,124,266 for its proportionate share of the net pension liability.The net pension liability was measured as of June 30,2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1,2020. The District's proportionate share of the net pension liability was based on the District's 2019-20 fiscal year contributions relative to the total 2019-20 fiscal year contributions of all participating members. At September 30, 2020,the District's proportionate share was .011823008 percent, which was an increase of.000054218 percent from its proportionate share measure as of September 30,2019. For the year ended September 30, 2020,the District recognized a pension expense of$1,291,742. 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 $ 196,116 $Change of assumptions 927,653 Net difference between projected and actual earnings on pension plan investments 305,104 - Changes in proportion and differences between District contributions and proportionate share of contributions 291,956 51,363 District contributions subsequent to the measurement date 97,533 Total $ 1,818,362 $ 51,363 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 34 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN -DEFINED BENEFIT PENSION PLAN,CONTINUED FRS Pension Plan,continued The deferred outflows of resources related to the FRS pension,totaling$97,533, 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 30,2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense over the remaining service period of 5.9 years as follows: Fiscal Years Ending September 30 Amount 2021 $ 354,718 2022 354,718 2023 354,718 2024 354,718 2025 278,442 Thereafter (27,84_8) Total $ 1,669,466 Actuarial Assumptions. The total pension liability in the July 1,2020,actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Valuation date July 1,2020 Measurement date June 30,2020 Inflation 2.40 percent Real payroll growth 0.85 percent Salary increases 3.25 percent,average,including inflation Investment rate of return 6.80 percent,net of pension plan investment expense,including inflation Actuarial cost method Individual entry age Mortality rates were based on the Generational PUB-2010 with Projection Scale MP-2018. The actuarial assumptions used in the July 1, 2020,valuation were based on the results of an actuarial experience study for the period July 1, 2013 through June 30, 2018. 1 6 I i B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 35 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED FRS Pension Plan,continued The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions,and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation(1) Return _ Return Deviation Cash 1,00% 2.2% 2.2% 1.2% Fixed income 19.00% 3.0% 2.9% 3.5% Global equity 54.20% 8.0% 6.7% 17.1% Real estate(property) 10.30% 6.4% 5.8% 11.7% Private equity 11.10% 10.8% 8.1% 25.7% Strategic investments 4.40% 5.5% 5.3% 6.9% Total 100.00% Assumed inflation-Mean 2.40% 1.70% (1)As outlined in the Plan's investment policy Money-weighted Rate of Return. The annual money-weighted rate of return on the FRS Pension Plan investments for the year ended September 30, 2020 was 3.35%. Discount Rate. The discount rate used to measure the total pension liability was 6.80 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. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 36 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,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 6.80 percent,as well as what the District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower(5.80 percent)or 1-percentage-point higher(7.80 percent)than the current rate: 1% Current 1% Decrease Discount Rate Increase (5.80%) (6.80%) (7.80%) District's proportionate share of the net FRS pension liability $ 8,182,591 $ 5,124,266 $ 2,569,939 Pension Plan Fiduciary Net Position. Detailed information about 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 30,2020. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee,FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www.dms.mvflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30,2020,the District reported a payable of$0 for the outstanding amount of contributions in the pension plan required for the year ended September 30, 2020. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 37 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED Health Insurance Subsidy(HIS)Plan Plan Description.The Health Insurance Subsidy Plan("HIS Plan")is a cost-sharing, multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Division of Retirement within the Florida Department of Management Services. Benefits Provided. For the year ended September 30,2020,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 30,2020,the contribution rate ranged between 1.66 percent and 1.66 percent of payroll pursuant to Section 112.363, Florida Statutes. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled. Pension Liabilities,Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to the HIS Plan. At September 30, 2020,the District reported a HIS liability of$724,859 for its proportionate share of the net HIS Plan's net pension liability. The net pension liability was measured as of June 30,2020,and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1,2020. The District's proportionate share of the net HIS liability was based on the District's 16 11B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 38 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED Health Insurance Subsidy (HIS)Plan,continued 2019-20 fiscal year contributions relative to the total 2019-20 fiscal year contributions of all participating members. At September 30,2020,the District's proportionate share was .005936679 percent, which was a decrease of.000221166 percent from its proportionate share measured as of September 30,2019. For the fiscal year ended September 30,2020,the District recognized HIS expense of$97,236. 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 Description of Resources of Resources Differences between expected and actual experience $ 29,651 $ 559 Change of assumptions 77,944 42,148 Net difference between projected and actual earnings on HIS pension plan investments 579 - Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 86,397 31,215 District contributions subsequent to the measurement date 8,939 - Total $ 203,510 $ 73,922 The deferred outflows of resources related to HIS,totaling$8,939, 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, 2021. 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 2021 $ 19,511 2022 19,511 2023 19,511 2024 19,510 2025 19,366 Thereafter 23,240 Total $ 120,649 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 39 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED Health Insurance Subsidy(HIS)Plan,continued Actuarial Assumptions. The total pension liability in the July 1,2020,actuarial valuation was determined using the following actuarial assumptions,applied to all periods included in the measurement: Inflation 2.40 percent Real Payroll Growth 0.85 percent Salary Increases 3.25 percent,average,including inflation Municipal Bond Rate 2.21 percent Annual Cost Method Individual entry age Mortality rates were based on the Generational PUB-2010 with Projected Scale MP-2018. 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 2.21 percent. 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 2.21 percent, as well as what the District's proportionate share of the net HIS liability would be if it were calculated using a discount rate that is 1-percentage-point lower(1.21 percent)or 1-percentage-point higher(3.21 percent)than the current rate: 1% Current 1% Decrease Discount Rate Increase (1.21%) (2.21%) (3.21%) District's proportionate share of the net HIS liability $ 837,904 $ 724,859 $ 632,331 16IiB2 IMMOKALEE FIRE CONTROL DISTRICT Page 40 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED Health Insurance Subsidy(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, 2020. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http:l.!www.dms.mvflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30, 2020,the District reported a payable of$0 for the outstanding amount of contributions to the HIS plan required for the fiscal year ended September 30, 2020. FRS -Defined Contribution Pension Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan(Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes,eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. District employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts,are defined by law,but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements,for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class(Regular Class,Elected County Officers,etc.),as the FRS defined benefit plan. Contributions 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 41 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,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 2019-20 fiscal year were as follows: Percent of Gross Salary* Class(2) Employee Employer(1) Employer(3) Florida Retirement System,Regular 3.00 10.00 8.47 Florida Retirement System,Senior Management Service 3.00 27.29 25.41 Florida Retirement System,Special Risk 3.00 24.45 25.48 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 16.98 14.60 Florida Retirement System,Reemployed Retiree (2) N/A N/A Florida Retirement System,Elected Official 3.00 49.18 48.82 Notes: (I) Employer rates include 166 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 711/20-6+30/21 (2) Contribution rates are dependent upon retirement class in which reemployed. (3) Employer rates include 166 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 7t1/19-6/30/20. 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, 2020,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. 16IlB2 IMMOKALEE FIRE CONTROL DISTRICT Page 42 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE H- RETIREMENT PLAN-DEFINED BENEFIT PENSION PLAN,CONTINUED FRS-Defined Contribution Pension Plan,continued After termination and applying to receive benefits,the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided;the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan,or remain in the Investment Plan and rely upon that account balance for retirement income. The District's Investment Plan pension expense totaled$198,066 for the fiscal year ended September 30, 2020. Payables to the Investment Plan. At September 30, 2020, the District reported a payable of$0 for the outstanding amount of contributions to the Plan required for the fiscal year ended September 30, 2020. Effective January 2019, the District began offering a 457(b)Deferred Compensation Plan to all employees which allows for salary deferrals with no employer contributions. Other Retirement Plan During the year ended September 30,2020,the District initiated a 401(a)plan for the District's Fire Chief. NOTE I - PROPERTY TAXES Property taxes are levied after formal adoption of the District's budget and become due and payable on November 1 of each year and are delinquent on April 1 of the following year. Discounts on property taxes are allowed for payments made prior to the April 1 delinquent date. Tax certificates are sold to the public for the full amount of any unpaid taxes and must be sold not later than June 1 of each year. The billing, collection,and related recordkeeping 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 2020 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. 16I1B ? IMMOKALEE FIRE CONTROL DISTRICT Page 43 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE I- PROPERTY TAXES,CONTINUED Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years after taxes become delinquent and occurs only upon request of a holder of a delinquent tax certificate. As of September 30, 2020,$32,030 was due from the Collier County Tax Collector for ad valorem taxes and excess fees. 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 Beginning of fiscal year for which taxes have been levied October 1 Taxes due and payable(levy date) November 1 with various discount provisions through March 31 Property taxes payable- maximum discount(4 percent) 30 days after levy date Due date March 31 Taxes become delinquent(lien date) April 1 Tax certificates sold by the Collier County Tax Collector Prior to June 1 For the year ended September 30,2020,the Board of Commissioners of the District levied ad valorem taxes at a millage rate of$3.75 per$1,000(3.75 mills)of the 2019 net taxable value of real property located within the District. NOTE J - IMPACT FEE FUND ACTIVITY During the year ended September 30,2020,the Impact Fee Fund had the following activity: Amount Unearned revenue,October 1,2019 $ 5,743,342 Impact fee receipts* 1,191,883 Interest income 64,668 Legal fees (5,277) Commissions(admin fee)-paid to Collier County** (11,915) • Capital outlay (3,472,361) Unearned revenue,September 30,2020 $ 3,510,340 * Includes$166,655 due from Collier County. ** Includes$4,047 due to Collier County 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 44 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE K- RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of,damage to, and destruction of assets; errors and omissions; injuries to employees;and natural disasters. Insurance programs for general/professional liability,automobile and property are covered by commercial insurance. The District retains the risk of loss up to a deductible amount(ranging from$0 to$2,500)with the risk of loss in excess of this amount transferred to the insurance carrier with limits of liability of$1,000,000 per occurrence and$10,000,000 in the aggregate. The District is third party insured for employee health, dental and vision as well as workers'compensation. NOTE L- PRIOR PERIOD ADJUSTMENT Restatement of Net Position The beginning net position of the District was adjusted as follows: Amount Net Position,September 30,2019 as originally stated $ (554,721) Adjustment to include land acquired in the prior year 263,340 Net Position,September 30,2019,as restated $ (291,381) The land was acquired via a grant and paid directly to the seller by Collier County, Florida. Therefore,resulting in the District not recording the land acquisition in the prior year. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 45 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE M-FUND BALANCE ALLOCATIONS Fund balance was allocated for the following purposes at September 30,2020: Nonspendable Fund Balance Amount General Fund Prepaid expenditures $ 73,920 Total Nonspendable Fund Balance-General Fund 73,920 Assigned Fund Balance General Fund Assigned for fiscal year startup(90 day operations) 1,050,000 Capital purchases 138,500 Disaster/Emergency 1,440,125 Fleet reserves 200,000 Total Assigned Fund Balance-General Fund 2,828,625 Total Fund Balance-General Fund $ 2,902,545 NOTE N- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS(OPEB) Plan Description The District's defined contribution OPEB Plan provides the opportunity to obtain health insurance,pharmacy,dental and vision benefits to its retired employees and their dependents. 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 Postemployment Benefits Other Than Pensions". GASB No. 75 requires the District record its actuarially determined total OPEB liability. All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As of September 30,2020,there were no retirees eligible to receive benefits. At September 30,2020 there were thirty four (34)active full time District employees and zero(0)inactive. The benefits are provided both with 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 minimum retirement age is 62 for administrative and 55 years old for special risk. The minimum years of service requirement is 10 years. The retiree's premiums for these benefits totaled$0 during the year ended September 30,2020. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 46 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE N- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB),CONTINUED Funding Policy The District's OPEB benefits are unfunded. The retiree is eligible for benefits under the District's health and pharmacy plan,but is obligated to reimburse the District for 100%of the cost of the retiree's health coverage. As such,the District has no ultimate obligation(explicit subsidy)for the retiree's health insurance premium. The District acts as agent for the retiree on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due.The District does, however, incur the cost of premium rate being increased on its active employees(implicit subsidy)due to providing coverage to its retirees. The District has not determined if a separate trust fund or equivalent arrangement will be established into which the District would make contributions to advance-fund the obligation. Therefore,no separate financial statement is issued. All required disclosures are presented herein. The Plan's measurement date was September 30, 2020. The retiree pays 100%of the retiree health coverage therefore there is no explicit subsidy. The retiree may purchase dependent coverage through the District. At age 65 the retiree then must move to Medicare but may continue to purchase dental and vision coverage through the District. The District finances the benefits on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due. The District subsidizes the premium rates paid by retirees by allowing them to participate at blended premium rates for both active and retired employees. These rates provide an implicit subsidy for retirees because,on an actuarial basis,retiree claims are expected to result in higher costs to the plan on average than those of active employees. The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality,and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 16IiB2 IMMOKALEE FIRE CONTROL DISTRICT Page 47 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE N- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB),CONTINUED Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive 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 of 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. At September 30,2020,the District's Net OPEB Liability of$541,364 was measured as of September 30,2020,and was determined by an actuarial valuation as of that date using the alternate measurement method. The following actuarial assumptions and other inputs were applied to all periods included in the measurement: The following simplifying assumptions were made: Mortality-Life expectancies were based on PUB-2010 Mortality Tables for Males and Females projected 10 years. Actuarial Cost Method-Entry age normal cost method. Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost Trend Model baseline assumptions with an initial rate of 4.9%per year trending to 4.30%by 2028. Turnover-Derived from data maintained by the US Office of Personnel Management regarding the most recent experience of the employee group covered by the Federal Employees Retirement System. Amortization Period: Rolling 20 year amortization Amortization Method: level percentage of payroll The discount rate was 2.41%(for 2020)(2.21%for 2019)(4.23%(or 2018)(2.8%for 2017)and was based on the 20 Year Municipal Bond Rate with AA/Aa or higher. Salary Increases 2.50% Discount Rate 2.41% The FRS salary scale was used Participation percentage: 50% 16 11B IMMOKALEE FIRE CONTROL DISTRICT Page 48 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE N - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB),CONTINUED Actuarial Methods and Assumptions,continued The actuarial assumptions used in the September 30,2020 valuation were calculated using alternative measurement method in accordance with GASB methodology. The rationales for selecting each of the assumptions used in the financial accounting valuation and for the assumptions changes summarized above are to best reflect the current market conditions and recent plan experience. Changes in the Net OPEB Liability Amount Balance at September 30,2019 $ 530,252 Changes for the Year: Service Cost 29,274 Interest Cost on Total OPEB Liability 12,282 Change in Benefit Terms - Difference Between Expected and Actual Experience (8,694) Changes in Assumptions (14,191) Benefit Payments (7,559) Net Changes 11,112 Balance at September 30,2020 $ 541,364 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 a discount rate that is 1 percent higher or 1 percent lower than the current discount rate. I%%o Decrease Current Rate 1%Increase 1.41% 2.41% 3.41% Net OPEB Liability $ 616,642 $ 541,364 $ 476,271 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%Decrease Trend Rate 1%Increase 3.9-3.3% 4.9-4.3% 5.9-5.3% Net OPEB Liability $ 452,956 $ 541,364 $ 649,761 1611B ? IMMOKALEE FIRE CONTROL DISTRICT Page 49 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE N - POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB),CONTINUED Changes in the Net OPEB Liability,continued For the year ended September 30, 2020,the District recognized OPEB expense of $18,671. At September 30, 2020 the District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources* Resources* Differences Between Expected and Actual Experience $ - $ - Changes in Assumptions -Net difference between projected and actual earnings - - Employer contribution subsequent to measurement date - Total $ - $ - 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* 2021 $ - 2022 - 2023 - 2024 - 2025 - Total Thereafter - $ - *Per GASB No. 75 paragraph 43(a) since the District used the alternative measurement method the effects of assumptions are recognized immediately. As such, since the Plan holds no assets their deferred inflows/outflows are zero. 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 50 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE O- DEFICIT UNRESTRICTED NET POSITION(NET ASSETS) During the year ended September 30,2020,the District's unrestricted net position (net assets)balance was again a deficit and totaled$(2,039,828), due substantially to recording the current year actuarially determined net pension liability of$5,849,125 and the net OPEB liability of$541,364. The District's total available fund balance at September 30, 2020 remains approximately equal to seven (7)months of actual expenditures. However,the Board has previously assigned$1,894,905 of the $2,902,545 available fund balance. NOTE P- COMMITMENTS AND CONTINGENCIES In September 2018,the District entered into an agreement with Collier County(the "County")with the intention of constructing a multi-purpose Public Safety Complex (PSC)in the Town of Ave Maria. The County is in possession of four acres of land, three of which are known as demised premises. The demised premises are intended to be developed into the PSC. This PSC will be utilized for fire, sheriff,and emergency medical services. In connection to the cost of constructing the PSC, Immokalee Fire Control District paid$121,000 to the County for the land as the District intends to own the PSC. In doing so,the County agreed to pay the District annual rent in the amount of$4,033 over the course of 30 years. The District is responsible for all costs associated with the construction of the building,including surveying,permitting, architect fees, consultant fees,and other professional services relating to the construction of the PSC. In January 2020,the District entered into a contract in the amount of$10,044,830 for the construction of the multi-purpose Public Safety Complex (Station 32). The District is funding the project through use of impact fees and a$5,500,000 loan. Payments made under this contract for the fiscal year ended September 30,2020 were$2,930,501 and are included in Construction in Progress. At September 30, 2020,the balance remaining on the contract was$7,114,329, including retainage of $298,373. In April 2020,the District entered into a$295,000 contract for the planning and design of a 10,000 square foot facility of apparatus bays and living quarters to replace Station 30. The facility will be located on land adjacent to the existing Station and is anticipated to be funded through a state grant and District funds(general revenue and impact fees). 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 51 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE P- COMMITMENTS AND CONTINGENCIES,CONTINUED On April 20,2020,the District entered into a ten(10)year$1,315,897 capital lease agreement for a ladder truck. Annual payments are$152,682 including fixed interest of 2.78%and commence upon delivery of the vehicle which is anticipated to occur in FY 21. NOTE Q- SUBSEQUENT EVENTS • At the November 2020,District Board meeting,the Board approved reinstating the monthly compensation of the Board members. The approved compensation of$250 per month began in December 2020. Additionally,the Board approved providing health insurance for the Board members but not FRS/HIS participation. • On October 19,2020,the District entered into a fifteen(15)year$319,193 capital lease agreement for a tanker fire truck. Annual payments are$27,675 including fixed interest of 3.92%and commence upon delivery of the vehicle. Subsequent to year end,the District was notified by the Internal Revenue Service that they were going to conduct a review of employee benefits for compliance with income tax regulations. NOTE R- COVID 19 In early March 2020,the World Health Organization classified the coronavirus outbreak"COVID-19" as a global pandemic,and it,unfortunately,continues to spread. Business continuity, including supply chains and consumer demand across a broad range of industries and countries,have been severely impacted,as governments and their citizens take significant and unprecedented measures to mitigate the consequences of the pandemic. On April 1, 2020,Florida Governor, Ron DeSantis ordered all Floridians to stay home,to lock down the State against the Coronavirus. Most governmental activity was cancelled and/or severely limited. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 52 of 75 NOTES TO THE FINANCIAL STATEMENTS September 30,2020 NOTE R- COVID 19,CONTINUED The District has adapted its operations to accommodate the current environment. However,the full impact of the COVID-19 outbreak continues to evolve as of the date of this report. This pandemic has adversely affected global economic activity and greatly contributed to instability in financial markets. Management is actively monitoring the local situation on its financial condition,liquidity, operations, donors, industry,and workforce. Given the daily evolution of COVID-19 and the global and local responses to curb its spread,the District is not able to estimate the future effects of COVID-19 on its results of operation,financial condition, or liquidity for fiscal year 2020-21. NOTE S- 457(b)DEFERRED COMPENSATION PLAN The District offers the employees the opportunity to participate in a 457(b) deferred compensation plan. This Plan has a third party trustee/custodian. It is 100% third party administered. The Plan only accepts employee contributions. NOTE T- 401(a)RETIREMENT PLAN The Board of Fire Commissioners established the 401(a)Plan(the "Plan")within the District's 457 Deferred Compensation Plan for the Fire Chief. This retirement Plan is in addition to the benefits the Chief is entitled to from FRS/HIS. The Plan was effective on June 18, 2020. At September 30,2020,the Plan has one(1) active participant and allows only the Chief to participate. The Plan permits employer contributions only. Amounts contributed by the employer are equal to$5,000 per fiscal year as required by the Chiefs employment contract. Employee contributions are prohibited. Employer contributions are 100%vested upon deposit into the Plan. Total District contributions to the Plan for the year ended September 30, 2020 were $5,000. 16 11B 2 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A 5 1 6 I 1 B 2 C IMMOKALEE FIRE CONTROL DISTRICT Page 53 of 75 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL -GENERAL FUND- SUMMARY STATEMENT Year Ended September 30,2020 General Fund Variance Original Final Favorable ' Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 4,106,122 $ 4,193,760 $ 4,193,763 $ 3 Intergovernmental revenues: Federal public safety grant-CDBG 337,000 266,500 7,500 (259,000) State firefighter supplemental 2,520 2,520 1,615 (905) Local government grant 50,000 - - - Inspection fees - - - Public safety services - - - - Miscellaneous: Interest 25,000 24,345 17,398 (6,947) Other 52,100 32,501 30,168 (2,333) Reserves brought forward 1,767,930 2,001,309 (2,001,309) TOTAL REVENUES 6,340,672 6,520,935 4,250444 12,270. j) EXPENDITURES Current Public safety Personnel services 3,777,075 3,560,201 3,565,172 (4,971) Operating expenditures 608,309 577,577 610,936 (33,359) Capital outlay 375,000 355,428 294,609 60,819 Debt service Principal reduction 127,792 127,792 112,563 15,229 Interest and fiscal charges 32,032 32,032 35,182 (3,150) F Assigned-90 day reserve 1,050,000 1,050,000 - 1,050,000 Assigned-Fleet Reserves - 200,000 - 200,000 i Assigned-18/19&19/20 Projected Deficit - 106,404 106,404 Assigned-Disaster Reserves 22,998 400,000 - 400,000 Assigned-Capital purchases 347,466 138,501 - 138,501 Assigned-GASB reserve - - - - Reserves-unassigned - - - - TOTAL EXPENDITURES 6,340,672 6,547,935 4,618,462 1,929,473 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - (27,000) (368,018) 1341,018) OTHER FINANCING SOURCES(USES) Proceeds from capital leases - - 231,713 231,713 Proceeds from disposition of capital assets - 27,000 37,185 10,185 Other financial assistance-CARES Act - - 1,000,000 1,000,000 TOTAL OTHER FINANCING SOURCES(USES) - 27,000 - 1,268,898 1,241,898 NET CHANGE IN FUND BALANCE $ - $ - 900,880 $ 900,880 FUND BALANCE-Beginning 2,00K665 FUND BALANCE-Ending S 2,902,545 The accompanying notes are an integral part of this statement. 1611132 IMMOKALEE FIRE CONTROL DISTRICT Page 54 of 75 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND DETAILED STATEMENT Year Ended September 30,2020 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable" REVENUES Ad Valorem taxes $ 4,106,122 $ 4,193,760 $ 4,193,763 $ 3 Intergovernmental revenues: - , Federal public safety grants-CDBG 337,000 266,500 7,500 (259,000) State firefighter supplemental 2.520 2,520 1,615 (905) Local government grants 50,000 - - - Inspection fees - - - - Public safety services - - • - Miscellaneous: Interest income 25,000 24,345 17,398 (6,947) Seminole contract - - - - PILT farm workers village 12,000 6,150 6,150 - • Donations 100 100 400 300 User fees-rent 5,000 5,000 6,180 1,180 Other income 35,000 21,251 17,438 (3,813) Subtotal 4,572,742 4,519,626 4,250,444 (269,182) Reserves brought forward 1,767,930 2,001,309 - (2,001,309) TOTAL REVENUES 6,340,672 6,520.935 4,250,444 (2,270,491) EXPENDITURES s PERSONNEL SERVICES Salaries Firefighters&administrative 1,855,947 1,855,947 1,854,163 1,784 Overtime pay 297,494 213,538 212,900 638 Holiday pay 53,560 53,560 52,734 826 Vacation&sick sell back pay 24,000 10,038 10,038 - Payroll taxes Social Security 170,672 160,556 160,556 - Benefits Retirement 565,402 516,968 521,969 (5,001) Group insurance 715,000 654,594 654,594 - Workers compensation 95,000 95,000 98,218 (3,218) Unemployment - - - - SUBTOTAL-PERSONNEL SERVICES 3,777,075 3,560,201 3,565,172 (4,971) OPERATING Contracted Services Physicals 1,000 1,000 5,710 (4,710) Legal fees 25,000 44,000 54,216 (10,216) Property appraiser fees 26,000 26,000 32,166 (6,166) Tax collection fees 84,879 84,879 85,875 (996) Contracted services 35,000 27,000 28,824 _(1 824) Subtotal-Contracted services 171,879 182,879 206,791 (23,912) r The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 1 IMMOKALEE FIRE CONTROL DISTRICT Page 55 of 75 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND DETAILED STATEMENT-CONTINUED Year Ended September 30,2020 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) OPERATING,CONTINUED Operating Education and training - - 7,913 (7,913) travel 12,500 22,000 21,938 62 Communications-telephone 20,000 20,000 20,829 (829) Postage 500 500 630 (130) Utilities 19,630 19,630 22,004 (2,374) i Explorer program - - - - Liability insurance 65.000 55,280 55 2$0 - Subtotal•Operating 117,630 117,410 128,594 (11,184) Maintenance Vehicle 70,000 55,701 59,261 (3,560) Equipment-firefighter and rescue 13,000 13,000 9,542 3,458 Generators 2,000 2,000 994 1,006 Equipment lease - - 19,278 (19,278) ' HVAC 2,000 2,000 2,750 (750) Building 37,800 23,945 22,731 1,214 Bunker gear 4,500 4,500 2,640 1,860 Cascade system - - 3,649 (1,649) Subtotal-Maintenance 129,300 101,146 120,845 (19,699) Legal advertising 3,000 3,000 3 95555} Supplies Office 2,500 2,500 1,668 832 Shipping 500 500 608 (10S) 1 Firefighter rescue 16,000 16,000 12,789 3,211 Station-janitorial - - 5,555 (5,555) Education&training 20,000 12,000 - 12,000 Fuel and oil 45,000 35,329 31,609 3,720 Uniforms 16,000 16,000 17,367 (1,367) Employee - - • Physical fitness equipment - - - - Inter-departmental - - - - Computer software and training 30,000 30,000 28,707 1,293 Miscellaneous 5,000 5,000 2,724 2,276 Bunker gear 10,000 10,000 2,659 7,341 Fire prevention - - 152 (152) Communication(radio) 2,500 2,500 1,062 1,438 Communication(phone) - - 381 (381) Station-non janitorial 7,000 7,000 1,753 5,247 i Public education 1,000 1,000 16 984 Furniture 1,000 1,000 - 1,000 Computer equipment 2,000 15,000 12,911 2,089 Fire Inspection - - - - Operating - • - - Minor equipment 25,000 16,313 27.348 (11,035) Tires&batteries • - - - The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 1 IMMOKALEE FIRE CONTROL DISTRICT Page 56 of 75 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND DETAILED STATEMENT-CONTINUED ' Year Ended September 30,2020 General Fund Variance t Original Final Favorable Budget Budget Actual (Unfavorable) 1 Books and dues 3,000 3,000 3,442 (442) Subtotal-Supplies 186.500 173,142 150,751 22,391 x SUBTOTAL-OPERATING EXPENDITURES 608,309 577,577 610,936 _ (33,359) Capital Outlay Land - 259,000 - 259,000 Firefighter rescue equipment 10,000 12,094 12,094 - Communication equipment 26,000 23,171 221,351 (198,180) Building and CIP 312,000 58,704 58,705 (I) Vehicles - - - - Bunker gear 15,000 - • - Furniture-Office - - • - Station equipment - - - - Computer equipment 12,000 2,459 2,459 - SUBTOTAL-CAPITAL OUTLAY 375,000 355,428 294,609 60,819 Debt service Principal retirement 127,792 127,792 112,563 15,229 Interest charges and fiscal 32,032 32,032 35,182 (3,150) SUBTOTAL-DEBT SERVICE 159,824 159,824 147,745 12,079 Assigned-90 day OPS 1,050,000 1,050,000 - 1,050,000 Assigned-Fleet Reserves - 200,000 - 200,000 Assigned-18/19&19/20 Projected Deficit - 106,404 - 106,404 Assigned-Disaster Reserves 22,998 400,000 - 400,000 Assigned-Capital purchases 347,466 138,501 - 138,501 Assigned-GASB Reserves - - - - Reserves-Unassigned - - - TOTAL EXPENDITURES 6,340,672 6,547,935 4,618 462 1,929,473 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - (27,000) (368,018) (341,018) OTHER FINANCING SOURCES(USES) Proceeds from capital leases • - 231,713 231,713 Proceeds from disposition of capital assets - 27,000 37,185 10,185 Other financial assistance-CARES Act • - 1,000,000 1,000,000 TOTAL OTHER FINANCING SOURCES(USES) _ - _ 27,000 1,268,898 1,241,898 NET CHANGE IN FUND BALANCE S - S - 900,880 S 900,880 FUND BALANCE-BEGINNING 2,001,665 FUND BALANCE-ENDING S 2,902,545 The aecomnanvine notes are an inteeral nart of this statement. 16I1R2 IMMOKALEE FIRE CONTROL DISTRICT Page 57 of 75 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL-IMPACT FEE FUND SUMMARY STATEMENT Year Ended September 30,2020 Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ - $ - $ - $ _ Impact fees 900,000 1,191,884 3,424,885 2,233,001 Intergovernmental revenue-grants - - - - Miscellaneous: Interest 95,000 64,668 64,668 - Other - - - - Cash brought forward 5,825,102 5,743,341 - (5,743,341) TOTAL REVENUES 6,820,102 6,999,893 3,489,553 (3,510,340) EXPENDITURES Current Public safety Personnel services - - - Operating expenditures 13,500 13,500 17,192 (3,692) Capital outlay 5,000,000 3,500,000 3,472,361 27,639 Debt service Principal reduction - - - - Interest and fiscal charges - - - _ Cash carried forward 1,806,602 3,486,393 - 3,486,393 TOTAL EXPENDITURES 6,820,102 6,999,893 3,489,553 3,510,340 EXCESS OF REVENUES OVER EXPENDITURES - - - - OTHER FINANCING SOURCES(USES) Operating transfers in - _ - - Operating transfers out - - - _ TOTAL OTHER FINANCING SOURCES(USES) - - - - NET CHANGE IN FUND BALANCE $ - $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. 1 6 I 1 B 2 Page 58 of 75 Receipts/ Disbursements/ Pass through Revenue Expenditures to Subrecipients $ 1,000,000 (1) $ 1,000,000 $ - 7,500 7,500 $ 1,007,500 $ 1,007,500 $ - 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 59 of 75 NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year ended September 30,2020 NOTE A- BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards has been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America and is in accordance with the provisions of the OMB Uniform Guidance. Expenditures reported on the Schedule of Expenditures of Federal Awards include cash disbursements, whether capitalized or expensed,during the fiscal year as well as grant related amounts recorded as payable at year end. Revenues reported on the Schedule of Expenditures of Federal Awards include cash receipts, whether recognized or deferred,as well as grant receivables recorded at year end. NOTE B- INDIRECT COSTS The District did not routinely allocate indirect costs to Federal Awards. Costs charged to such programs were direct costs. The District has elected not to use the 10%de minimus indirect cost rate allowed under the Uniform Guidance. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT SCHEDULE OF DISTRICT PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM (FRS)PENSION PLAN(1) 2020 2019 2018 2017 District's proportion of the net pension liability 0.011823008% 0.017687900% 0.012139622% 0.011523968% District's proportionate share of the net pension liability $ 5,124,266 $ 4,053,007 $ 3,656,517 $ 3,408,712 District's covered-employee payroll $ 2,129,835 $ 2,092,719 $ 2,199,804 S 2,117,620 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 240.59% 193.67% 166 22% 160.97% Plan fiduciary net position as a percentage of the total pension liability 78 85% 82 61% 84 26% 83.89% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS- FLORIDA RETIREMENT SYSTEM(FRS) PENSION PLAN (1) 2020 2019 2018 2017 Contractually required contribution $ 480,781 $ 464,854 $ 454,867 $ 381,858 Contributions in relation to the contractually required contribution 480,781 464,854 454,867 381,858 Contribution deficiency(excess) $ - $ - $ - $ District's covered-employee payroll $ 2,129,835 $ 2,092,719 $ 2,199,804 $ 2,117,620 Contributions as a percentage of covered-employee payroll 22 57% 22 21°% 20.68% 18 03% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. GASB 68 requires information for 10 years. However,until a full 10-year trend is compiled, governments should present information for only those years for which information is available. 1 6 I 1 B 2 Page 60 of 75 2016 2015 2014 0.009463726% 0.006183105% 0.006001750% $ 2,389,598 $ 798,631 $ 366,195 $ 1,735,883 $ 1,298,578 S 1,199,275 137 0% 61 50% 30 53% 84 38% 92 00% 96.09% 2016 2015 2014 $ 365,318 S 236,175 $ 209,820 } 365,318 236,175 209,820 $ - S - S - S 1,735,883 $ 1,298,578 $ 1,199,275 2105% 18199, 17.50% 1 6 I 1 B 2 Page 61 of 75 2016. 2015 2014 0.005168356% 0.004192421% 0.004035317% $ 602,350 $ 427,561 $ 377,312 $ 1,735,883 $ 1,298,578 $ 1,199,275 34 70% 32.93% 31 46% 0 97% 0 50% 0 99% 2016 2015 2014 29,194 $ 19,237 $ 14,244 29,194 19,237 14,244 $ - $ - $ - $ 1,735,883 $ 1,298,578 $ 1,199,275 1 68% 1 48% 119% 1 6 I 1 B 2 IMMOKALEE FIRE CONTROL DISTRICT Page 62 of 75 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION September 30,2020 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 2019 for the period July 1, 2013,through June 30,2018. Because the HIS Program is funded on a pay-as-you-go basis,no experience study has been completed for that program. The actuarial assumptions that determined the total pension liability for the HIS Program were based on certain results of the most recent experience study for the FRS Pension Plan. The total pension liability for each cost-sharing defined benefit plan was determined } using the individual entry age actuarial cost method. Inflation increases for both plans is assumed at 2.40%. 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 6.90%to 6.80%. The Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore,the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Because the HIS Program uses a pay-as-you-go funding structure,a municipal bond rate was decreased from 3.50%to 2.21%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 PUB-2010 with Projection Scale MP-2018. Florida Retirement System Pension Plan There were changes in actuarial assumptions. As of June 30,2020,the inflation rate assumption decreased to 2.4 percent,the real payroll growth assumption was increased to 0.85 percent,and the overall payroll growth rate assumption remained at 3.25 percent. The long-term expected rate of return was reduced from 6.90 percent to 6.80 percent. Health Insurance Subsidy Pension Plan The municipal rate used to determine total pension liability decreased from 3.50 percent to 2.21 percent. 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 63 of 75 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION September 30,2020 Pension Expense and Deferred Outflows/Inflows of Resources In accordance with GASB 68,paragraphs 54 and 71,changes in the net pension liability are recognized in pension expense in the current measurement period,except as indicated below. For each of the following, a portion is recognized in pension expense in the current reporting period,and the balance is amortized as deferred outflows or deferred inflows of resources using a systematic and rational method over a closed period,as defined below: • Differences between expected and actual experience with regard to economic and demographic factors -amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Changes of assumptions or other inputs -amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Changes in proportion and differences between contributions and proportionate share of contributions-amortized over the average expected remaining service life of all employees that are provided with pensions through the pension plan(active and inactive employees) • Differences between expected and actual earnings on pension plan investments - amortized over five years Employer contributions to the pension plans from employers are not included in collective pension expense. However, employee contributions are used to reduce pension expense. The average expected remaining service life of all employees provided with pensions through the pension plans at June 30,2020,decreased from 6.4 years to 5.9 years for FRS and remained at 7.2 years for HIS. 1 6 I 1 B 2 • IMMOKALEE FIRE CONTROL DISTRICT Page 64 of 75 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 2020 2019 2018 Service Cost $ 29,274 $ 29,274 $ 31,359 Interest Cost on Total OPEB Liability 12,282 16,639 13,731 Changes in Benefit Terms - - - Differences Between Expected and Actual Experience (8,694) 85,904 116,389 Changes in Assumptions (14,191) (75,615) (100,573) Benefit Payments (7,559) (33,008) (25,607) Net Change in net OPEB Liability 11,112 23,194 35,299 Net OPEB Liability-Beginning of Year 530,252 507,058 471,759 Net OPEB Liability-End of Year $ 541,364 $ 530,252 $ 507,058 NOTE: Information for FY 2017 and earlier is not available. Plan Fiduciary Net Position as of September 30: 2020 2019 2018 Contributions-Employer $ 7,559 $ 33,008 $ 25,607 Net Investment Income - - - Benefit Payments (7,559) (33,008) (25,607) Administrative Expense - -Net Change in Fiduciary Net Position - - - Fiduciary Net Position-Beginning of Year - - - Fiduciary Net Position-End of Year $ - $ - $ - Net OPEB Liability $ 541,364 $ 530,252 $ 507,058 Fiduciary Net Position as a%of Net OPEB Liability 0.00% 0.00% 0.00% Covered-Employee Payroll* Net OPEB Liability as a%of Payroll* *Because this OPEB plan does not depend on 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 follows: 9130/17 2.80% 9/30/18 4.23% 9/30/19 2.21% 9/30/20 2.41% Population covered by Plan: 31 active 0 retired Plan has no specific trust established.$0 assigned for OPEB. 1 6 I 1 B 2 ADDITIONAL REPORTS yt 16 1Lft2 ]'IJ S CAN Florida institute of Certified Public Accountants American Institute of Certified Public Accountants & Company, PA Pnsate Companies Practice Section Tax Division Certified Public Accountants&Consultants Page 65 of 75 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Immokalee Fire Control District 502 East New Market Road Immokalee,Florida 34142 We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, the basic financial statements of the governmental activities and each major fund of Immokalee Fire Control District (the "District") as of and for the year ended September 30, 2020 and the related notes to the financial statements which collectively comprise the District's basic financial statements as listed in the table of contents and have issued our report thereon dated February 16, 2021. 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. INTEGRITY SERVICE EXPERIENCE® 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907• Phone: (239)333-2090•Fax: (239) 333-2097 16 I 1 B 2 Page 66 of 75 A material weakness is a deficiency,or a combination of deficiencies, in internal control,such that there is a reasonable possibility that a material misstatement of the Immokalee Fire Control District's 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 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 were not identified. We noted a certain other item that we have reported in our Independent Auditor's Report to Management dated February 16, 2021. Compliance and Other Matters As part of obtaining reasonable assurance about whether Immokalee Fire Control District's basic financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements,noncompliance with which could have a direct and material effect on the determination of basic 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 or other matters 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. - -161JAA/414) dat44/1 / ?‘ TUSCAN&COMPANY, P.A. Fort Myers, Florida February 16,2021 1 6 I 1 B 2 Affiliations ,f TUSCAN Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants & Company, PA Private Companies Practice Section Tax Division Certified Public Accountants&Consultants Page 67 of 75 Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance in Accordance with the Uniform Guidance Board of Commissioners Immokalee Fire Control District 502 East New Market Road Immokalee, Florida 34142 Report on Compliance for Each Major Federal Program We have audited Immokalee Fire Control District's compliance with the types of compliance requirements described in the OMB Compliance Supplement, as applicable,that could have a direct and material effect on each of Immokalee Fire Control District's major federal programs for the year ended September 30,2020. Immokalee Fire Control District's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws,regulations, and the terms and conditions of its federal awards. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of Immokalee Fire Control District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America;and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" ("Uniform Guidance"). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis,evidence about Immokalee Fire Control District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. INTEGRITY SERVICE EXPERIENCE® 12621 World Plaza Lane, Building 55 • Fort Myers, FL 33907 • Phone: (239)333-2090• Fax: (239)333-2097 1 6 I 1 B 2 Page 68 of 75 We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However,our audit does not provide a legal determination of Immokalee Fire Control District's compliance with those requirements. Opinion on Each Major Federal Program In our opinion,Immokalee Fire Control District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2020. Report on Internal Control Over Compliance Management of Immokalee Fire Control District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Immokalee Fire Control District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance,but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Immokalee Fire Control District's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees,in the normal course of performing their assigned functions,to prevent,or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected,on a timely basis. A significant deficiency in internal control over compliance is a deficiency,or a combination of deficiencies,in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance,yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies,material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. 16 11B 2 Page 69 of 75 Purpose of the Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly,this report is not suitable for any other purpose. /Ati,1140 (1. , TUSCAN&COMPANY, P.A. Fort Myers, Florida February 16,2021 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 70 of 75 SCHEDULE OF FINDINGS AND QUESTIONED COSTS-FEDERAL AWARDS Year ended September 30,2020 Section I—Summary of Auditor's Results Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting: Control deficiency(ies)identified? Yes X No Significant deficiency(ies)identified? Yes X No Material weaknesses)identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Control deficiency(ies)identified? Yes X No Significant deficiency(ies)identified? Yes X No Material weakness(es) identified? Yes X None reported Type of auditors report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR, Section 200.516(a)? Yes X No Identification of major programs (Type A): CFDA Number(s) Name of Federal Program or Cluster 21.019 U.S. Department Treasury Coronavirus Relief Fund Dollar threshold used to distinguish between Type A and Type B programs Threshold used was$750,000. Auditee qualified as low-risk auditee? Yes X No 16I1B2 IMMOKALEE FIRE CONTROL DISTRICT Page 71 of 75 SCHEDULE OF FINDINGS AND QUESTIONED COSTS-FEDERAL AWARDS,CONTINUED Year ended September 30,2020 Listing of Subrecipients and matching amounts passed-through: None-not applicable Section II-Financial Statement Findings There were no deficiencies,material weaknesses, or instances of noncompliance related to the financial statements. Section III-Federal Award Findings and Questioned Costs There were no audit findings related to Federal Awards required to be reported by 2 CFR, Section 200.516(a). Section IV-Status of Federal Prior Year Findings There were no prior year findings. 1611B2 Affiliations III TUSCAN Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants & Company, PA Private t 'mimics Practice Section Ta Domino Certified Public Accountants&Consultants Page 72 of 75 INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE WITH SECTION 218.415,FLORIDA STATUTES Board of Commissioners Immokalee Fire Control District 502 East New Market Road Immokalee, Florida 34142 We have examined Immokalee Fire Control District's compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. Management is responsible for Immokalee Fire Control District's compliance with those requirements. Our responsibility is to express an opinion on Immokalee Fire Control 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 Immokalee Fire Control District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Immokalee Fire Control District's compliance with specified requirements. In our opinion,Immokalee Fire Control District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2020. This report is intended solely for the information and use of Immokalee Fire Control 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. , ...,44.0.4.41) 444,10,1 , 4 . TUSCAN& COMPANY, P.A. Fort Myers, Florida February 16, 2021 INTEGRITY SERVICE EXPERIENCE® 12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 • Phone: (239)333-2090• Fax: (239)333 209' 16I1B2 Affiliations 1EI' Florida Institute of Certified Public Accountants American Institute of Certified Public Accountants & Company, PA Prnate Companies Practice Section Tax Division Certified Public Accountants&Consultants Page 73 of 75 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners Immokalee Fire Control District 502 East New Market Road Imrnokalee, Florida 34142 We have audited the accompanying basic financial statements of Imrnokalee Fire Control District (the "District") as of and for the year ended September 30, 2020 and have issued our report thereon dated February 16, 2021. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards and Chapter 10.550, Rules of the Auditor General. Disclosures in those reports,which are dated February 16, 2021, should be considered in conjunction with this report to management. Additionally,our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditor's reports: • 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. There were no financially significant prior year comments noted. • 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. Such recommendations were noted to improve financial management. INTEGRITY SERVICE EXPERIENCE® 12621 World Plaza Lane,Building 55 • Fort Myers, FL 33907 •Phone: (239)333-2090• Fax: (239)333-2097 1 6 I 1 B 2 Page 74 of 75 • Section 10.554(1)(i)3., Rules of the Auditor General,requires that we address 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., Rules 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 have 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 same. In connection with our audit,we determined that the District did not meet any of the criteria of a deteriorating financial condition described in Auditor General Rule Section 10.554(1)(i)(6).c. • Pursuant to Section 10.554(1)(i)5b.2,Rules of the Auditor General,if a deteriorating financial condition(s) is noted then a statement is so required along with the conditions causing the auditor to make such a conclusion. No such conditions were noted. • 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 District(F.S. Section 218.39(3)(b)). There are no known 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 District's compliance with the provisions of Section 218.415, Florida Statutes,regarding the investment of public funds. In connection with our audit, we determined that the District complied with Section 218.415, Florida Statutes as reported in our Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes dated February 16, 2021,included herein. 16I1B2 Page 75 of 75 Section 10.557(3)(m), Rules of the Auditor General,requires a notarized affidavit related to impact fees signed and sworn to be the Chief Financial officer be included in the audit report. Such affidavit is included as Exhibit 2. PRIOR YEAR COMMENTS: There were no financially significant prior year comments noted. CURRENT YEAR COMMENTS: 2020-01 On March 27, 2019,the District acquired land adjacent to Station 30 to be used for the construction of a new fire station. The land was purchased with grant funds, which were disbursed directly by Collier County on behalf of the District. The funds did not pass through the District and therefore, the transaction was inadvertently overlooked until the following fiscal year. This resulted in the understatement of net position for the fiscal year ended September 30, 2019 and, consequently,a restatement of the beginning net position for the fiscal year ended September 30, 2020 in the amount of $263,340. 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. et.a.vig41�cc,l�,�w � TUSCAN&COMPANY, P.A. Fort Myers, Florida February 16, 2021 1 6 I 1 B 2 EXHIBIT 1 1 6 I 1 B 2 \OOKAt4F 'ANP R Immokalee Fire Control District A l E 502 New Market Road East, Immokalee, FL. 34142 Ave Maria- Michael J. Choate, Fire Chief March 2, 2021 Auditor General's Office Local Government Audits/342 Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450 In connection with the audit for the fiscal year ended 9-30-20, we are pleased to report there were no prior year comments. Current Year Comment: 2020-01 On March 27, 2019 the District acquired land adjacent to Station 30 to be used for the construction of a new fire station. The land was purchased with grant funds, which were disbursed directly by Collier County on behalf of the District. The funds did not pass through the District and therefore, the transaction was inadvertently overlooked until the following fiscal year. This resulted in the understatement of net position for the fiscal year ended September 30, 2019 and, consequently, a restatement of the beginning net positon for the fiscal year ended September 30, 2020 in the amount of $263,340. Response: In May of 2019, the District created the position of Deputy Chief of Administrative Services. Included within the responsibilities of this position's are the application for and administration of District grants. The District filled the position with Deputy Chief Rita Greenberg, who has extensive experience in the application and administration of grant funds. She now oversees the administration of all District grants, and ensures proper communication with the Chief Financial Officer regarding the funding and reimbursement process for all District grants. This comment relates to a one-time occurrence, and the District has directly addressed the issue with the creation of the new position. This comment is resolved. The District continues to refine and enhance financial reporting and compliance functions, and internal controls, policies and procedures. Close communication with our auditing firm, Tuscan & Co., PA is maintained to ensure we continue to operate in a manner that assures financial compliance. The Board of Fire Commissioners and management staff are committed to avoiding future possible comments and we maintain our assurance that future audits will reflect the actions we have taken. Sincerely, IMMOKALEE FIRE CONTROL DISTRICT Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227 r .,i^11m cc-, 11.4011 1 6 I 1 B 2 EXHIBIT 2 16I1B2 Immokalee Fire Control District e E 502 New Market Road East, Immokalee, FL. 34142 Ave nfaria Michael J. Choate, Fire Chief BEFORE ME,the undersigned authority,personally appeared,Rebecah Bronsdon,who being duly sworn, deposes and says on oath that: 1. I am the Chief Financial Officer of the Immokalee Fire Control District which is a local governmental entity of the State of Florida; 2. The Immokalee Fire Control District adopted Resolution 20I9 Resolution No. 2019-17 implementing an impact fee; and 3. The Immokalee Fire Control District has complied and, as of the date of this Affidavit, remains in compliance with Section 163.31801, Florida Statutes. FURTHER AFFIANT SAYETH NAUGHT. Rebecah Bronsdon, Chief Financial Officer STATE OF FLORIDA COUNTY OF COLLIER SWORN TO AND SUBSCRIBED before me this 21 st day of January, 2021. • 4I's (-).s NOTARY PUBLIC tt Print Name esti vRk_kr,c`cir'rts- Personally known or produced identification Type of identification produced: My Commission Expires: -- re�k,t ALMAROSAVALlADAPES .,I MYCOMMISSIONt00341414 {U' I ';-Pt• EXPIRES:October 1,2023 i e; Bonded 1hru Rb1C lhndnMdlws , Administration(239)657-2111 Operations(239)657-8587 Fire Prevention(239)597-9227 Fax(239)657-9489