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FY End 09/30/2021 Basic Financial Statements & Reports NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT BASIC FINANCIAL STATEMENTS TOGETHER WITH ADDITIONAL REPORTS YEAR ENDED SEPTEMBER 30,2021 TABLE OF CONTENTS Page(s) INDEPENDENT AUDITOR'S REPORT 1-4 MANAGEMENT'S DISCUSSION AND ANALYSIS(MD&A) i-xi BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS: Statement of Net Position 5 Statement of Activities 6 FUND FINANCIAL STATEMENTS: Governmental Funds: Balance Sheet 7 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 8 Statement of Revenues,Expenditures and Changes in Fund Balance 9 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 10 Fiduciary Fund-Firefighters'Pension Plan: Statement of Fiduciary Net Position 11 Statement of Changes in Fiduciary Net Position 12 NOTES TO THE FINANCIAL STATEMENTS 13-81 OTHER INFORMATION COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA Governmental Funds Combining Balance Sheet-General Fund-by Service Delivery Area 82 Combining Statement of Revenues,Expenditures,and Changes in Fund Balance- General Fund-by Service Delivery Area 83 REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A NORTH NAPLES SERVICE DELIVERY AREA BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds) Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Summary Statement 84 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Detailed Statement 85-87 BIG CORKSCREW ISLAND SERVICE DELIVERY AREA BUDGET TO ACTUAL COMPARISON-MAJOR FUNDS(General and Special Revenue Funds) Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Summary Statement 88 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- General Fund-Detailed Statement 89-91 TABLE OF CONTENTS(CONTINUED) Page(s) COMBINED SERVICE DELIVERY AREAS Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Impact Fee Fund-Combined Service Delivery Areas Summary Statement 92 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Impact Fee Fund-Combined Service Delivery Areas Detailed Statement 93 BUDGET TO ACTUAL COMPARISON-OTHER NON-MAJOR GOVERNMENTAL FUND Special Revenue Fund: Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Inspection Fee Fund-Summary Statement 94 Statement of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual- Inspection Fee Fund-Detailed Statement 95-96 OTHER REQUIRED SUPPLEMENTARY INFORMATION Schedule of District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS) 97 Schedule of District Contributions-Florida Retirement System Pension Plan(FRS) 97 Schedule of District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS) 98 Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS) 98 Notes to the Required Supplementary Information-FRS/HIS 99-100 Schedule of Changes in the Net OPEB Liability and Related Ratios,GASB No. 75 and Related Notes to the Schedule 101 Schedule of Changes in the District's Net Pension Liability and Related Ratios(unaudited)- Firefighters'Pension Trust Fund 102 Schedule of District Contributions-Firefighters'Pension Trust Fund 103 Schedule of Investment Returns-(Unaudited)Firefighters'Pension Trust Fund 104 Notes to the Required Supplementary Information-Firefighters' Pension Trust Fund 105 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 106-107 Independent Accountant's Report on Compliance with Section 218.415,Florida Statutes 108 Independent Auditor's Report to Management 109-111 Management's Response to Independent Auditor's Report to Management Exhibit 1 Florida Rules of the Auditor General-Rule 10.554(1)(i)6-8 Compliance-Unaudited Exhibit 2 fr v TuscAN Affiliations Florida Institute of Certified Public Accountants & O�alp,ur3y, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division INDEPENDENT AUDITOR'S REPORT Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples,Florida 34109-0492 Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities,each major fund,the non-major fund and the fiduciary fund type of North Collier Fire Control and Rescue District(the"District")as of and for the year ended September 30,2021,and the related notes to the financial statements,which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America;this includes the design,implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit.We did not audit the financial statements of North Collier Fire Control and Rescue District Firefighters'Pension Trust Fund("Fiduciary Fund-Pension Fund")as of and for the year ended September 30,2021,which represent 100%of the assets,liabilities and net position as well as 100%of the revenue and expenses of the District's Fiduciary Fund.Those financial statements were audited by other auditors whose report thereon has been furnished to us,and our opinion,insofar as it relates to the amounts included for North Collier Fire Control and Rescue District Firefighters'Pension Trust Fund,is based on the report of the other auditors. We also did not audit the financial statements of the Florida Retirement System Pension Plan(FRS)or Health Insurance Subsidy Pension Plan(HIS)as of and for the year ended June 30,2021. 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 30,2021 and for the year then ended. The Florida Retirement System financial statements were audited by other auditors whose reports have been furnished to us,and our opinion,insofar as it relates to the amounts included for the District's government-wide financial statements,are based on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States of America. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the District's preparation and fair presentation of the financial statements in order to INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane,Building 55 •Fort Myers, FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097 Board of Commissioners North Collier Fire Control and Rescue District Page 2 design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Summary of Opinions Opinion Unit Type of Opinion Governmental Activities Unmodified General Fund Unmodified Impact Fee Fund Unmodified Inspection Fee Fund Unmodified Firefighters'Pension Trust Fund Unmodified Opinions Unmodified Opinions In our opinion,based on our audit and the report of other auditors,the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities,each major fund,the non-major fund and the fiduciary fund type of North Collier Fire Control and Rescue District as of September 30,2021,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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages i-xi,Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule, Schedule of Changes in the District's Net Pension Liability and Related Ratios(unaudited)-Firefighters'Pension Trust Fund, Schedule of District Contributions-Firefighters'Pension Trust Fund,Schedule of Investment Returns-(Unaudited) Firefighters'Pension Trust Fund and Notes to the Required Supplementary Information-Firefighters'Pension Trust Fund as listed in the table of contents,be presented to supplement the basic financial statements. Such information,although not a part of the basic financial statements,is required by the Governmental Accounting Standards Board which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic,or historical context. We have applied certain limited procedures to the required supplementary information-management's discussion and analysis(MD&A),Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS), Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS), Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS),Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule,Schedule of Changes in the District's Net Pension Liability and Related Ratios(unaudited)-Firefighters'Pension Trust Fund,Schedule of District Contributions-Firefighters'Pension Trust Fund,Schedule of Investment Returns- (Unaudited)Firefighters'Pension Trust Fund and Notes to the Required Supplementary Information-Firefighters'Pension Trust Fund 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 Board of Commissioners North Collier Fire Control and Rescue District Page 3 knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the required supplementary information-management's discussion and analysis(MD&A), Schedule of the District's Proportionate Share of the Net Pension Liability-Florida Retirement System Pension Plan(FRS),Schedule of District Contributions-Florida Retirement System Pension Plan(FRS),Schedule of the District's Proportionate Share of the Net Pension Liability-Health Insurance Subsidy Pension Plan(HIS),Schedule of District Contributions-Health Insurance Subsidy Pension Plan(HIS), Notes to the Required Supplementary Information and Schedule of Changes in the Net OPEB Liability and Related Ratios GASB No.75 and Related Notes to the Schedule,Schedule of Changes in the District's Net Pension Liability and Related Ratios(unaudited)-Firefighters'Pension Trust Fund,Schedule of District Contributions- Firefighters'Pension Trust Fund,Schedule of Investment Returns-(Unaudited)Firefighters'Pension Trust Fund and Notes to the Required Supplementary Information-Firefighters'Pension Trust Fund as listed in the table of contents,because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Required Supplementary Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise North Collier Fire Control and Rescue District's basic financial statements.The required supplementary information other than MD&A-budgetary comparison information is presented for purposes of additional analysis and is not a required part of the basic financial statements.The required supplementary information other than MD&A budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the required supplementary information other than MD&A-budgetary comparison information is fairly stated,in all material respects,in relation to the basic financial statements as a whole. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements. The combining financial statements as listed in the table of contents,are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the combining financial statements are fairly stated,in all material respects,in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District's basic financial statements. The Exhibit 1 -Management's Response to Independent Auditor's Report to Management and Exhibit 2-Florida Rules of the Auditor General-Rule 10.554(1)(i)6-8 Compliance are not a required part of the basic financial statements but are required by Government Auditing Standards and Rules of the Auditor General, Section 10.554(i),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 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 May 13,2022,on our consideration of North Collier Fire Control and Rescue District's compliance with provisions of Section 218.415,Florida Statutes. The purpose of that report is to describe the scope of our testing of compliance and the results of that testing,and to provide an opinion on compliance with the aforementioned Statute. That report is an integral part of an audit performed in accordance with Sections 218.39 and 218.415,Florida Statutes in considering North Collier Fire Control and Rescue District's compliance with Section 218.415,Florida Statutes. Board of Commissioners North Collier Fire Control and Rescue District Page 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated May 13,2022,on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations,contract and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering North Collier Fire Control and Rescue District's internal control over financial reporting and compliance. 'id/4"i") ill leM41/1 TUSCAN&COMPANY,P.A. Fort Myers,Florida May 13,2022 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) Management's Discussion and Analysis of Financial Statements FYE September 30, 2021 This Discussion and Analysis of the North Collier Fire Control & Rescue District's ("The District") basic financial statements is provided to assist the reader in understanding the District's financial activities and significant changes in ending financial position for the fiscal year ended September 30, 2021. These statements include the requirements of GASB Statements #34, #68 and#75 and incorporate those annual reporting requirements, as well as the financial statement format and presentation. Contained within are the basic financial statements, consisting of the government-wide financial statements, governmental fund and fiduciary fund financial statements and related notes to the financial statements. This Discussion and Analysis will also provide an analytical overview of these statements, including comparisons of the District's financial position at September 30,2021 versus September 30, 2020. District Highlights 1. At the conclusion of fiscal year 2021, the District's assets exceeded its liabilities, resulting in net assets of$36,918,153 as compared to net assets at September 30, 2020 of$25,511,294. 2. The District had$6,358,076 in unrestricted net assets at September 30, 2021 as compared to ($6,627,736) deficit of unrestricted net assets at September 30, 2020. The amount of unrestricted net assets increased by $12,985,812. 3. Total revenues on the government-wide basis increased$278,958 or 1%percent, in comparison to the prior year. 4. Total expenses on the government-wide basis decreased($8,732,293) or(21%) percent, in comparison to the prior year. Government-wide Financial Statements Government-wide financial statements (Statement of Net Position and Statement of Activities found on pages 5 and 6) are intended to allow a reader to assess a government's operational accountability. Operational accountability is defined as the extent to which the government has met its operating objectives efficiently and effectively, using all resources available for that purpose, and whether it can continue to meet its objectives for the foreseeable future. Government-wide financial statements concentrate on the District as a whole and do not emphasize fund types. The Statement of Net Position(page 5)presents information on all of the District's assets and liabilities,with the difference between the two reported as net assets. The District's capital assets are included in this statement and reported net of their accumulated depreciation. The Statement of Activities (page 6)presents revenue and expense information showing how the District's net assets changed during the fiscal year. Both statements are measured and reported using the economic resource measurement focus (revenues and expenses) and the accrual basis of accounting(revenue recognized when earned and expense recognized when incurred). BRV 5/18/2022 Governmental Fund Financial Statements The accounts of the District are organized on the basis of governmental funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Governmental fund financial statements (found on pages 7 and 9) are prepared on the modified accrual basis using the current financial resources measurement focus. Under the modified accrual basis of accounting,revenues are recognized when they become measurable and available as net current assets. Fiduciary Fund The fiduciary fund is used to account for resources held for the benefit of retired employees that participated in the District's Firefighters' Pension Plan(Plan 2). The fiduciary funds are not reflected in the government-wide financial statements because the resources of this fund are not available to support the District's programs. The accounting used for the fiduciary fund is much like that used for governmental proprietary funds. The fiduciary fund financial statements can be found on pages 11 and 12. Notes to the Financial Statements The notes to the financial statements explain in detail some of the data contained in the preceding statements and begin on page 13. These notes are essential to a full understanding of the data provided in the government-wide and fund financial statements. Government-Wide Financial Analysis The government-wide financial statements are designed so that the user can determine if the District's financial condition is better or worse than the prior year. BRV 5/18/2022 ll The following is a Condensed Summary Statement of Net Position for the District (Primary Government) at September 30, 2021 and 2020: Summary Statement of Net Position September 30 Assets: 2021 2020 Current and Other Assets $29,449,689 $23,073,068 Capital Assets 32,860,379 34,692,567 Total Assets 62,310,068 57,765,635 Deferred Outflows - Pensions 15,168,042 16,231,538 Liabilities: Current Liabilities 8,864,135 3,656,402 Non-Current Liabilities 16,425,423 33,800,721 Total Liabilities 25,289,558 37,457,123 Net Position: Deferred Inflows - Pensions 15,270,399 11,028,756 Net Investment in Capital Assets 29,780,446 31,974,210 Restricted 779,631 164,820 Unrestricted(deficit) 6,358,076 (6,627,736) Total Net Position $36,918,153 $25,511,294 Current and other assets represent 47 percent of total assets at September 30, 2021, as compared to 40 percent of total assets at September 30,2020. Current assets at September 30, 2021 are comprised of unrestricted cash balances of$12,947,420, restricted cash of $5,178,575,investments of$10,175,383,due from other governments of$1,057,647,other receivables of $71,317 and other assets of $19,347. The balances of unrestricted cash represent amounts that are available for spending at the discretion of the Board of Fire Commissioners of the District. Restricted cash balances are comprised of the impact fee funds restricted for the purchase of capital assets, and unspent inspections fee revenue restricted to support the inspection of new construction. The net investment in capital assets represent 81 percent of net assets at September 30, 2021, as compared to 125 percent at September 30, 2020. These assets are comprised of land, buildings, improvements, equipment, furniture, and vehicles, net of accumulated depreciation, and the outstanding related debt used to purchase the assets. The assigned fund balance of$20,605,388 represents resources available for spending at September 30, 2021. The District currently has $0 fund balance unassigned by the Board. BRV 5/18/2022 iii Summary of Revenues, Expenses and Changes in Net Assets For the Years Ended September 30, 2021 and September 30, 2020 Revenues: 2021 2020 General Revenues Ad Valorem Taxes $42,755,907 $39,774,303 Program Revenues Grants 670,881 514,324 Charges for Services 3,394,527 2,307,075 Miscellaneous Impact Fees 69,729 83,973 Investment Earnings 65,364 372,372 Gain(Loss) on Disposition of Capital Assets 300,103 35,514 Other financial assistance—CARES Act --- 1,000,000 Reinstatement of deferred revenue (Sale of Yarberry Lane property) (2,889,872) --- Other 233,396 233,516 Total Revenues 44,600,035 44,321,077 Expenses: Public Safety—Fire/Rescue Service 33,193,176 41,925,469 Increase(Decrease) in Net Position 11,406,859 2,395,608 Net Position-Beginning of Year 25,511,294 23,115,686 Net Position-End of Year $36,918,153 $25,511,294 BRV 5/18/2022 1V The assessed value of the property within the North Naples Service Delivery Area increased 5.8 percent for the 2020-2021 fiscal year as compared to the prior year's assessed value while maintaining the millage rate of 1.000 mils, resulting in an increase in Ad Valorem tax revenues of$2,216,952. The property values in the North Naples Service Delivery Area decreased by 25 percent during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue. However,property values have since increased between 2012 and 2021 and have now exceeded the previous high point in value during FYE 9-30-07. The Board adopted a millage rate of 1.000 mils in the North Naples Service Delivery Area taxing unit, or$1.00 for every$1,000 of taxable property value. This millage rate was 3.15 percent more than the rolled back rate (the taxing rate necessary to generate the same Ad Valorem revenue as was generated during the 2019-2020 fiscal year) of.9695. The assessed value of the property within the Big Corkscrew Island Service Delivery Area increased 11.0 percent for the 2020-2021 fiscal year as compared to the prior year's assessed value, resulting in an increase in Ad Valorem tax revenues of$764,652. The property values in the Big Corkscrew Island Service Delivery Area decreased by 66 percent during the fiscal years 2007-2012, resulting in a decrease in Ad Valorem revenue. Although property values have increased between 2012 and 2021,property value in the Big Corkscrew Island Service Delivery Area is still 20 percent lower in FYE 9-30-21 than it was in FYE 9-30-07. The Board adopted a millage rate of 3.75 mils in the Big Corkscrew Island Service Delivery Area taxing unit, or$3.75 for every $1,000 of taxable property value. This millage rate was 11.20 percent more than the rolled back rate (the taxing rate necessary to generate the same Ad Valorem revenue as was generated during the 2019-2020 fiscal year) of 3.6193. Prior to the 2007-2008 fiscal year, the increase in Ad Valorem revenue resulting from the increase in property value was sufficient to provide adequate funds to support operational, capital and reserve financial requirements in the District without increasing the millage rate. While property values have been on the increase over the last few years, the increases have not been sufficient to prevent the use of reserves to fund capital purchases. The following chart identifies the change in appraised property values in the District by service delivery area and the millage rate maintained by the District. BRV 5/18/2022 V North Naples SDA Property Value 2005 - 2021 $40,000,000,000 $35,000,000,000 $30,000,000,000 1 $25,000,000,000 $20,000,000,000 $15,000,000,000 $10,000,000,000 $5,000,000,000 $- 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Big Corkscrew SDA Property Value 2005 - 2021 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $- 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 BRV 5/18/2022 Vi Fund Balance—Governmental Fund Financial Statements The Board of Fire Commissioners' directive is to utilize the fund balance and cash reserves of the General Fund to fund capital purchases and improvements, declared emergency situations, and to maintain the District's financial position. During the 2018- 2019 fiscal year, the District received reimbursement of$843,685 from FEMA for many of the Hurricane Irma expenses incurred. During the 2019-2020 fiscal year, the District received$1,085,818 in reimbursements associated with the COVID-19 pandemic response. Receipt of these reimbursement funds have been used to replenish the District's General Fund reserves. At September 30, 2021, the District had General Fund reserves totaling $20,624,735. This includes the non-spendable amount of$19,347 restricted for prepaid expenses, and$20,605,388 for assigned reserves. Assigned reserves have been established and maintained in accordance with anticipated future needs of the District, including operating expenses for the first quarter of the fiscal year prior to the receipt of Ad Valorem revenue, expenditures associated with declared emergencies, and the replacement of capital assets. Additionally, increases in health insurance, and other personnel and operating expenses that require funds to be set aside, or assigned,to prepare for the funding of future expenditures. The following General Fund Assigned Reserves were approved for the fiscal year ended September 30, 2021: Non Spendable Fund Balance Amount General Fund Prepaid Expenses $ 19,347 Assigned Fund Balance Amount Operating Reserve— 1st Quarter(Oct-Dec) $ 10,450,482 Emergency Reserve 8,662,235 Health Insurance Claim Reserve 457,671 Roof Replacement 785,000 Fire Apparatus 250,000 Total Assigned Reserves $ 20,605,388 Unassigned Fund Balance Amount General Fund—Unassigned S 0 Total General Fund Reserves S20,624,735 Impact Fees With the creation of the North Collier Fire Control and Rescue District in January 2015, an impact fee study was performed to establish impact fee rates for the new District. However, that study was not completed and new rates were not adopted until October 1, 2016. Prior year impact fee assessments were based on a structure's square footage. The new rate structure bases fees on structure usage classifications and the methodology utilizes population rather than emergency call volume. These rates using the population- based methodology were updated annually prior to October 1st of each year. However, the impact of the change in methodology overall resulted in a decrease in impact fee receipts. Total annual impact fee receipts decreased 66 percent from fiscal year 2015- 2016 to 2019-2020 (from $2,674,309 to $911,074). At the September 24, 2020 Board of Fire Commissioners meeting,the District approved a new impact fee rate structure BRV 5/18/2022 Vil methodology based on an incident-based approach for the demand component rather than a population-based approach per the impact fee study produced on August 24, 2020. These new rates per the new rate structure became effective January 1, 2021 via Resolution 20-022. Total annual impact fee receipts for the current fiscal year totaled $820,350, which was actually(9.96%) less than the prior year. This is primarily attributable to the timing of impact-fee eligible projects being paid to the District versus the change in fee structure. The District still anticipates overall impact fee receipts to increase over the next few years. Total Impact Fee Fund expenses for the 20-21 fiscal year were $73,611, consisting of Collier County collection fees and the annual debt service payment for land purchased in the Big Corkscrew Service Delivery Area. On March 24, 2021, the District approved the sale of the "Yarberry Lane"property as surplus land for$3,505,000. Of the $3,152,700 net proceeds received, $2,889,872 was classified as impact fee deferred revenue while $262,828 was classified as general fund proceeds from disposition of capital assets revenue. Inspection Fees Inspection fee revenue for the year ended September 30, 2021 was $2,640,180 representing an increase of$830,794 or 45.9 percent as compared to inspection fee revenue in the prior fiscal year(2020). In June of 2014, the District terminated its Interlocal Agreement with the Fire Code Official's office to provide fire plan review services and assumed the responsibility for those plan reviews. As a result, $1,124,203 of the fund's revenue was attributable to plan review fees. The Inspection Fee Fund had sufficient revenue in the 2020-2021 fiscal year to support all functions associated with new construction inspections and plan reviews and had excess revenues over expenditures by $614,811 during the fiscal year. This increase is primarily attributable to growth momentum in commercial, multi-family construction and similar developments coming into our District. The timing and driver of this growth is also namely attributable to the COVID pandemic. Many companies and families relocated to southwest Florida, and especially Collier County. There were various construction delays, material and supply-chain constraints during the 2019-2020 fiscal year, which resulted in many of the projects being implemented in the 2020-2021 fiscal year. Overall, the Board continues to monitor the volume of new construction projects and the fees necessary to support the associated costs of this growth. Budgetary Highlights Budget versus actual comparisons are reported in the required supplementary information other than management's discussion and analysis on pages 84 through 96 and are reflected by taxing subunit(service delivery area). The amendments to General Fund revenue were necessary to reflect an increase due to a higher amount of receipts during the fiscal year for capital asset proceeds ($277,000) and training fees ($10,800), which was included in the original combined budget but not included in the individual NNSDA and BCSDA budgets. By these amendments, General Fund revenue was increased by $287,800. The amendments to the General Fund expenditures were a result of several factors. Budgeted capital outlay increased overall by$539,174 which included reclassifications from capital to operating expenses in communication equipment($152,433), HazMat equipment($14,393) and computer equipment ($144,000) and increasing fire apparatus by $850,000. Budgeted operating expenses increased overall by$310,826 due to the BRV 5/18/2022 viii aforementioned reclassifications from capital to operating expenses. Budgeted personal expenditures were increased by $277,000 due to the annual PEHP contribution made in November, 2021 and accrued into FYE 9-30-21. Capital Assets Non-depreciable capital assets include land and construction in progress. Depreciable assets include buildings, improvements other than buildings, equipment, furniture and vehicles. The following is a schedule of the District's capital assets as of September 30, 2021 and 2020. Capital Assets September 30 Capital Assets 2021 2020 Land $12,823,117 $15,712,989 Construction in Progress 2,513,755 1,319,431 Total Capital Assets not Depreciated 15,336,872 17,032,420 Assets Held Under Capital Lease 5,328,917 4,266,045 Buildings 21,508,194 21,283,328 Office Equipment 1,542,088 1,546,311 Vehicles 8,669,169 8,476,780 Equipment& Machinery 3,725,104 3,941,483 Total Capital Assets Being Depreciated 40,773,472 39,513,947 Accumulated Depreciation Assets Held Under Capital Lease (1,918,542) (1,412,562) Buildings (10,000,434) (9,186,739) Office Equipment (1,090,095) (967,237) Vehicles (7,435,628) (7,197,089) Equipment&Machinery (2,805,266) (3,090,173) Total Accumulated Depreciation (23,249,965) (21,853,800) Total Capital Assets being Depreciated, Net 17,523,507 17,660,147 Capital Assets—Net of Depreciation 32,860,379 34,692,567 Less: Capital Lease/Note Payables (3,079,933) (2,718,357) Net Assets Invested in Capital Assets Net of Related Debt $29,780,446 $31,974,210 Significant capital asset purchases made during the fiscal year ended September 30, 2021 include: BRV 5/18/2022 lx 1. Building improvements (General Fund)totaling $240,616 including the Taylor Rd. site (including the NCFR shop), Station 40, Station 42, Station 43, Station 44, Station 45, Station 46, Station 42, Station 10 and"Sun Century" site. 2. Vehicles (non-capital lease)totaling $1,323,755 including one (1) Polaris Ranger ATV, Pumper(46) refurbishment, Pierce Heavy Rescue unit and a progress payment on the new District Fire Boat(considered Construction in Progress). 3. Fire and Rescue Equipment totaling$1,555,314 including extrication equipment, an air purification system, fire training programs, (37)new Philips Tempus monitors (33 being a capital lease purchase), HazMat equipment, etc. 4. Other equipment totaling$50,991 (computer servers,backup server and a hydraulic drop trailer). 5. No capital impact fee eligible expenditures were made during the fiscal year ended September 30, 2021. For additional information on the District's capital assets, see Note E on pages 39 and 40. Debt Administration As of September 30, 2021, the District had long term obligations of$17,244,237, as compared to $34,386,353 at September 30, 2020, a decrease of$17,142,116 or(49.9) percent. The decrease is largely due to the slight increase in the net OPEB obligation ($750,645) offset with major decreases in the net Pension Liability of the FPT (Firefighter Pension Trust) and FRS (Florida Retirement System). Additionally,the District added a capital lease for the purchase of(33) heart monitor during the fiscal year ended September 30, 2021. That debt consists of: 1. Compensated absences (accrued vacation liability) in the amount of$2,417,328, as compared to $2,335,073 at September 30, 2020. 2. Net OPEB obligation of$10,730,786 as compared to $9,980,141 at September 30, 2020, representing post-employment health insurance obligations pursuant to GASB No. 75. 3. Capital lease for fire apparatus, radio equipment, staff vehicles and heart monitor equipment identified above in the total amount of$2,964,933. This includes the lease to purchase agreement for the three fire engines and one ladder truck was entered into on January 15, 2016,the lease to purchase agreement for one velocity ladder truck was entered into on May 1, 2017,the lease to purchase agreement for radio equipment which was entered into on May 20, 2019, the lease to purchase agreement for six(6) Chevrolet staff vehicles which was entered into on December 12, 2019 and the least to purchase agreement for(33)tempus pro heart monitors which was entered into on December 28, 2020. 4. Note payable for the purchase of station in the amount of$115,000. 5. Pension liability(FRS) in the amount of$1,486,928 (see Note F). 6. Pension liability(HIS) in the amount of$1,749,993 (see Note F). 7. Pension "asset" (Ch. 175) in the amount of($2,220,733) (see Note F). BRV 5/18/2022 X Economic Facts and Next Year's Budget Millage Rates The following factors were being taken into consideration when the fiscal year ending September 30, 2022 budget was prepared: 1. Appraised taxable property values increased by$1,392,028,612, or 3.8 percent for tax year 2021 (FY 2022) in the North Naples service delivery area as compared to an increase of 5.8 percent in 2020. In the Big Corkscrew service delivery area, taxable property values increased by$259,539,484, or 12.4 percent for tax year 2021 (FY 2022), similar to the increase of 11 percent in 2020. 2. The Board adopted a millage rate of 1.000 mils in the North Naples service delivery area and 3.75 mils in the Big Corkscrew service delivery area for the fiscal year ending September 30, 2022. The Board believes the increase in valuation(at the same millage rate) is necessary to compensate for future capital funding,personnel growth, and unknown, disaster-related expenditures. The Board has expressed the desire to continue to move towards one unified taxing rate District wide. However, the alternative addition of a non-ad valorem fire fee assessment was not approved by local voters as of the November 2017 elections. Funding mechanisms and millage caps will be analyzed and reviewed by the District on a regular basis to ensure adequate funding. 3. The Board approved and has budgeted the usage of General Fund reserves totaling $1,131,833 to balance the budget. This is attributed to various projects and purchases that the District was not able to make during the past few fiscal years and is anticipating to complete some of these projects in this budget year. 4. Although appearing to be through the majority of affects due to the COVID-19 pandemic, the District will continue to monitor the overall cost to respond and will continue to research all avenues for Federal, State, and local funding to reimburse expenditures. Request for Information This financial report is designed to provide the reader an overview of the District. Questions regarding any information provided in this report should be directed to: Ben Van Klingeren, Chief Financial Officer, North Collier Fire Control& Rescue District, 1885 Veterans Park Drive,Naples, FL 34109, 239-597-1322, e-mail: bvanklingeren@northcollierfire.com. BRV 5/18/2022 Xi NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 of 111 STATEMENT OF NET POSITION September 30,2021 Governmental Activities ASSETS Current assets: Cash and cash equivalents $ 12,947,420 Restricted cash and cash equivalents 5,178,575 Investments 10,175,383 Due from other governments 1,057,647 Other receivables,net 71,317 Other assets 19,347 Total current assets 29,449,689 Noncurrent assets: Capital assets: Land 12,823,117 Construction in progress 1,300,898 Equipment in transit 1,212,857 Depreciable buildings, equipment, and vehicles (net of$23,249,965 accumulated depreciation) 17,523,507 Total noncurrent assets 32,860,379 TOTAL ASSETS 62,310,068 DEFERRED OUTFLOWS OF RESOURCES 15,168,042 LIABILITIES Current liabilities: Accounts payable and accrued expenses 2,631,130 Contract deposits 7,500 Unearned revenue 5,406,693 Current portion of long-term obligations 818,812 Total current liabilities 8,864,135 Noncurrent liabilities: Noncurrent portion of long-term obligations 16,425,423 TOTAL LIABILITIES 25,289,558 DEFERRED INFLOWS OF RESOURCES 15,270,399 NET POSITION Net investment in capital assets 29,780,446 Restricted 779,631 Unrestricted(deficit) 6,358,076 TOTAL NET POSITION $ 36,918,153 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 6 of 111 STATEMENT OF ACTIVITIES Year Ended September 30, 2021 Governmental Activities EXPENSES Governmental Activities Public Safety-Fire Protection Personnel services $ 23,808,668 Operating expenses 7,198,009 Depreciation 2,085,276 Interest and fiscal charges 101,223 TOTAL EXPENSES -GOVERNMENTAL ACTIVITIES 33,193,176 PROGRAM REVENUES Charges for services 3,394,527 Operating grants and contributions 670,881 NET PROGRAM EXPENSES 29,127,768 GENERAL REVENUES Ad Valorem taxes 42,755,907 Impact fees 69,729 Interest 65,364 Gain on disposition of capital assets 300,103 Reinstatement of unearned revenue-impact fees (2,889,872) Other 233,396 TOTAL GENERAL REVENUES 40,534,627 INCREASE IN NET POSITION 11,406,859 NET POSITION-Beginning of the year 25,511,294 NET POSITION-End of the year $ 36,918,153 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 7 of 111 BALANCE SHEET-GOVERNMENTAL FUNDS September 30,2021 Total General Impact Fee Inspection Fee Governmental Fund Fund Fund Funds ASSETS Cash and cash equivalents $ 12,947,420 $ - $ - $ 12,947,420 Restricted cash and cash equivalents - 4,542,046 636,529 5,178,575 Investments 9,466,103 709,280 - 10,175,383 Due from other governments 736,180 123,936 197,531 1,057,647 Due from other funds 40 16,733 - 16,773 Other receivables,net 71,317 - - 71,317 Prepaid expenses 19,347 - - 19,347 TOTAL ASSETS $ 23,240,407 $ 5,391,995 $ 834,060 $ 29,466,462 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable and accrued expenses $ 2,574,882 $ 1,859 $ 54,389 $ 2,631,130 Retainage payable - - - - Due to other funds 16,733 - 40 16,773 Contract deposits 7,500 - - 7,500 Unearned revenue 16,557 5,390,136 - 5,406,693 TOTAL LIABILITIES 2,615,672 5,391,995 54,429 8,062,096 FUND BALANCE Nonspendablc 19,347 - - 19,347 Restricted - - 779,631 779,631 Assigned 20,605,388 - - 20,605,388 Unassigned - - - - TOTAL FUND BALANCE 20,624,735 - 779,631 21,404,366 TOTAL LIABILITIES AND FUND BALANCE $ 23,240,407 $ 5,391,995 $ 834,060 $ 29,466,462 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 8 of 111 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2021 Amount Total fund balance of governmental funds $ 21,404,366 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and,therefore,are not reported in the governmental funds. Capital assets not being depreciated: Land 12,823,117 Construction in progress 1,300,898 Equipment in transit 1,212,857 15,336,872 Governmental capital assets being depreciated: Building,equipment and vehicles 40,773,472 Less accumulated depreciation (23,249,965) 17,523,507 Deferred outflows and deferred inflows related to pensions are applied to future periods and,therefore,are not reported in the governmental funds. Deferred outflows-Net OPEB Liability 1,401,552 Deferred outflows-FRS/HIS 1,872,126 Deferred outflows-FPT 11,894,364 15,168,042 Deferred inflows-Net OPEB Liability (1,885,947) Deferred inflows-FRS/HIS (8,298,746) Deferred inflows-FPT (5,085,706) (15,270,399) Long-term obligations are not due and payable in the current period and,therefore,are not reported in the governmental funds. Net OPEB liability (10,730,786) Net pension liability-FRS (1,486,928) Net pension liability-HIS (1,749,993) Net pension liability-FPT 2,220,733 Capital leases (2,964,933) Note payable (115,000) Compensated absences (2,417,328) (17,244,235) Elimination of interfund amounts: Due to other funds (16,773) Due from other funds 16,773 Total net position of governmental activities $ 36,918,153 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 9 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -GOVERNMENTAL FUNDS Year Ended September 30, 2021 Total General Impact Fee Inspection Fee Governmental Fund Fund Fund Funds REVENUES Ad Valorem taxes $ 42,755,907 $ - $ - $ 42,755,907 Intergovernmental revenue: State firefighter supplement 56,643 - - 56,643 Federal grants 595,438 - - 595,438 Other intergovernmental 18,800 - - 18,800 Charges for services: Inspection fees and other 755,435 - 1,514,889 2,270,324 Plan review fees - - 1,124,203 1,124,203 Impact fees - 69,729 - 69,729 Miscellaneous: Interest 60,394 3,882 1,088 65,364 Other 233,396 - - 233,396 TOTAL REVENUES 44,476,013 73,611 2,640,180 47,189,804 EXPENDITURES Current Public safety Personnel services 34,093,661 - 1,913,563 36,007,224 Operating expenditures 7,072,040 14,163 111,806 7,198,009 Capital outlay 3,170,677 - - 3,170,677 Debt service: Principal reduction 687,498 57,500 - 744,998 Interest and fiscal charges 99,275 1,948 - 101,223 TOTAL EXPENDITURES 45,123,151 73,611 2,025,369 47,222,131 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (647,138) - 614,811 (32,327) OTHER FINANCING SOURCES AND USES Proceeds from capital lease 1,106,574 - - 1,106,574 Proceeds from disposition of capital assets 327,820 - - 327,820 Transfers in - - - - Transfers out - - - - TOTAL OTHER FINANCING SOURCES AND USES 1,434,394 - - 1,434,394 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES 787,256 - 614,811 1,402,067 FUND BALANCE-Beginning of the year 19,837,479 - 164,820 20,002,299 FUND BALANCE-End of the year $ 20,624,735 $ - $ 779,631 $ 21,404,366 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 10 of 111 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30,2021 Amount Net change(revenues and other financing sources over(under)expenditures and other financing uses)in fund balance-total governmental funds $ 1,402,067 The increase(change)in net position reported for governmental activities in the Statement of Activities is different because: Governmental funds report capital outlays as expenditures. In the Statement of Activities,however,the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The loss on disposition of capital assets decreases the net position. Plus:expenditures for capital assets 3,170,677 Less:proceeds on disposition of capital assets (327,820) Plus:gain on disposition of capital assets 300,103 Less:current year depreciation (2,085,276) Less:reinstate(replenish)impact fee fund-sale of Yarberry land (2,889,872) (1,832,188) The issuance of debt is reported as a financing source in governmental funds and thus contributes to the change in fund balance. In the Statement of Net Position,however,issuing debt increases long-term liabilities and does not affect the Statement of Activities. Similarly,repayment of principal is an expenditure in the governmental funds but reduces the liability in the Statement of Net Position. Borrowings(proceeds from issuance): Less:capital lease-heart monitors (1,106,574) (1,106,574) Repayments(principal retirement): Plus:capital leases 687,498 Plus:note payable 57,500 744,998 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 Net OPEB liability (750,645) (Increase)decrease in net pension liability-FRS 7,916,491 (Increase)decrease in net pension liability-HIS (13,565) (Increase)decrease in net pension liability-FPT 10,433,669 (Increase)decrease in compensated absences (82,255) Increase(decrease)in deferred outflows-OPEB 62,597 (Increase)decrease in deferred inflows-OPEB 340,163 Increase(decrease)in deferred outflows-FRS/HIS (1,746,542) (Increase)decrease in deferred inflows-FRS/HIS (4,622,575) Increase(decrease)in deferred outflows-FPT 620,449 (Increase)decrease in deferred inflows-FPT 40,769 12,198,556 Increase in net position of governmental activities $ 11,406,859 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 11 of 111 STATEMENT OF FIDUCIARY NET POSITION-FIDUCIARY FUND September 30, 2021 Firefighters' Pension Trust Fund ASSETS Investments,at fair value: Cash and cash equivalents -money market $ 1,470,008 Equity securities 93,494,715 Fixed income mutual funds-international 6,474,522 U.S. Government bonds 9,716,593 Corporate bonds 9,271 786 Real estate 7,393,361 127,820,985 Prepaid expenses 1,346 Due from other governments- State - Due from District 888,111 Due from employees - Due from securities sold 142,026 Accrued investment income 131,399 TOTAL ASSETS 128,983,867 LIABILITIES Accounts payable 99,472 Due for securities purchased 386,713 TOTAL LIABILITIES 486,185 NET POSITION Restricted for DROP benefits 1,670,783 Restricted for defined pension benefits 126,826,899 TOTAL NET POSITION $ 128,497,682 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 12 of 111 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION- FIDUCIARY FUND Year Ended September 30, 2021 Firefighters' Pension Trust Fund ADDITIONS Contributions: Employer $ 3,606,617 Plan members-employees 1,342,040 Buybacks 26,421 State of Florida, insurance premiums excise tax 1,891,478 Total contributions 6,866,556 Investment income: Net appreciation(depreciation)including realized gains/losses 18,588,552 Interest and dividends 2,985,821 21,574,373 Less: investment expenses (368,892) Net investment income(loss) 21,205,481 Other income 17,354 TOTAL ADDITIONS 28,089,391 DEDUCTIONS Benefits paid 1,157,454 DROP distributions 131,723 Refund of contributions 23,468 Administrative expenses 105,739 TOTAL DEDUCTIONS 1,418,384 NET INCREASE IN NET POSITION 26,671,007 NET POSITION-BEGINNING 101,826,675 NET POSITION-ENDING $ 128,497,682 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 13 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization North Collier Fire Control and Rescue District(the "District") is an independent special taxing district located in Collier County, Florida. On January 1, 2015, the North Collier Fire Control and Rescue District was officially formed by merging the North Naples Fire Control and Rescue District and the Big Corkscrew Island Fire Control and Rescue District. On February 6, 2014, the two Districts entered into an Interlocal Agreement to merge. Each Board adopted a resolution identifying their intent to initiate the voluntary merger process pursuant to Florida Statute Chapter 189.074. The two Districts created a proposed Joint Merger Plan which was adopted by both Boards and ultimately put before the voters of each District by referendum. On November 4, 2014, voters from both districts approved the referendum to merge the two districts into one. On June 10, 2015, the Governor signed into legislation the official enabling act of the new District via Laws of Florida (LOF) Chapter 2015-191. The merger is intended to ensure the best possible emergency response times, operational efficiencies and ensure long term sustainability of the combined District. There was no impairment of capital assets as the result of the merger,which was effective as of January 1, 2015 and no significant accounting adjustment other than to combine the assets, liabilities and net position/fund balance at January 1, 2015 of both Districts. The District has the general and special powers prescribed by Florida Statute Chapters 189, 191 and 633.15. The District is governed by a five (5) member elected Board of Commissioners. Commissioners serve on a staggered four(4)year term basis. The North Collier Fire Control and Rescue District provides fire control and protection services, fire safety, inspections, code enforcement, fire hydrant maintenance, firefighter training, and crash and fire rescue services as well as basic and advanced life support services. The District serves a portion of Collier County, Florida. In providing these services, the District operates and maintains ten(10) stations and the related equipment and employs approximately 266 full-time professional firefighters and administrative staff. During the year ended September 30, 2009, the North Naples Fire Control and Rescue District entered into a joint venture agreement with Florida SouthWestern State College(FSW) for the operation of the North Collier Fire Training Center (NCFTC)to educate and train students as State Certified Firefighters. The North Collier Fire Control and Rescue District is now licensed to operate the NCFTC and FSW is the program coordinator. The District provides the training room and training NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 14 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Organization, continued facilities for the NCFTC. FSW, as program coordinator, is responsible for the operations of the NCFTC including but not limited to the screening and enrolling of students and for screening and engaging instructors. Therefore, the activities of the NCFTC are not included in the District's basic financial statements. Reporting Entity The District adheres to Governmental Accounting Standards Board(GASB) Statement Number 14, "Financial Reporting Entity" (GASB 14), as amended by GASB Statement Number 39, "Determining Whether Certain Organizations Are Component Units" (GASB 39) and GASB Statement Number 61, "The Financial Reporting Omnibus -An Amendment of GASB Statements No. 14 and No. 34" (GASB 61). This Statement requires the basic financial statements of the District(the primary government)to include its component units, if any. A component unit is a legally separate organization for which the elected officials of the primary government are financially accountable. Based on the criteria established in GASB 14, as amended, there are no component units required to be included or included in the District's basic financial statements. Government-wide Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)report information on all of the activities of the District and do not emphasize fund types. These governmental activities comprise the primary government. Fiduciary funds are properly not included in the government-wide financial statements. General governmental and intergovernmental revenues support the governmental activities. The purpose of the government-wide financial statements is to allow the user to be able to determine if the District is in a better or worse financial position than the prior year. The effect of all interfund activity between governmental funds has been removed from the government-wide financial statements. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the pension fund financial statements. Under the accrual basis of accounting, revenues, expenses, NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 15 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Government-wide Financial Statements, continued gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement Number 33, "Accounting and Financial Reporting for Nonexchange Transactions" (GASB 33). Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements rather than reported as expenditures. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements rather than as other financing sources. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability in the government-wide financial statements rather than as expenditures. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase,use, or directly benefit from goods, services, or privileges provided by a given function, and 2) grants and contributions that are restricted to meeting the operational or capital improvements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Program revenues are considered to be revenues generated by services performed and/or by fees charged such as inspection fees,burn permits, and hydrant tests. Fund Financial Statements The District adheres to GASB Number 54, "Fund Balance Reporting and Governmental Fund Type Definitions" (GASB 54). Essentially,the implementation resulted in adoption of a fund balance policy and reclassification of the components within fund balance. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 16 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Financial Statements, continued The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity or net position,revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the District's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in aggregate for governmental funds. The fiduciary fund financial statement includes financial information for the Firefighters' Pension Trust Fund. The fiduciary fund represents assets held by the District in a custodial capacity for the benefit of other individuals. Governmental Funds When both restricted and unrestricted resources are combined in a fund, expenditures are considered to be paid first from restricted resources, as appropriate, and then from unrestricted resources. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. The District's major funds are presented in separate columns on the governmental fund financial statements. The definition of a major fund is one that meets certain criteria set forth in GASB Statement Number 34, "Basic Financial Statements -and Management's Discussion and Analysis - for State and Local Governments" (GASB 34). The funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a single column on the governmental fund financial statements. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported in separate columns on the fund financial statements. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 17 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Governmental Funds, continued In accordance with the District's enabling documents, separate budgets within the General Fund are maintained for the North Naples (NN) Service Delivery Area and the Big Corkscrew Island(BCI) Service Delivery Area. Separate budgets are required for each service delivery area until such time as when one consistent millage rate is adopted for both service delivery areas. As such, separate service delivery area budget vs. actual comparison statements are included in the required supplementary information and a combining schedule is included in the other information section as the District must ultimately maintain and report a single General Fund. Fiduciary Fund The Pension Trust Fund accounts for the activities of the Firefighters' Pension Trust (FPT) Fund, which accumulates resources for the pension benefit payments to qualified firefighters. The net position of this fund is not considered to be part of the net position of the District and is not available to the District's creditors. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the basic financial statements. Basis of accounting relates to the timing of the measurements made,regardless of the measurement focus applied. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 18 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Measurement Focus and Basis of Accounting, continued Revenues are considered to be available when they are collectible within the current period and soon enough thereafter to pay liabilities of the current period. For this purpose,the District considers tax revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues susceptible to accrual are interest on investments, and intergovernmental revenues. Interest on invested funds is recognized when earned. Intergovernmental revenues that are reimbursements for specific purposes or projects are recognized when all eligibility requirements are met. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include: (1) principal and interest on long-term debt, if any, is recognized when due; and (2) expenditures are generally not divided between years by the recording of prepaid expenditures. Separate financial statements are provided for governmental funds and the fiduciary fund, even though the latter are excluded from the government-wide financial statements. Non-current Government Assets/Liabilities GASB 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as notes payable and capital leases, to be reported in the governmental activities column in the government-wide Statement of Net Position. Major Funds The District reports the following major governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District(including both service delivery areas), except those required to be accounted for in another fund. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 19 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Major Funds, continued The Impact Fee Fund(the District has one combined Impact Fee Fund) consists of fees imposed and collected by Collier County based on new construction within each service delivery area of the District. The fees are restricted and can only be used for certain capital expenditures associated with growth within the District. Non-Major Fund The District reports the following non-major fund: The Inspection Fee Fund is used by the District to account for the receipt and expenditures of its Inspection and Plan Review Fee Programs. Fees are charged for the inspection of new building construction and for fire code plan review. The fees are collected by Collier County and are remitted to the District. This fund also includes fee per interlocal agreement whereby the District performs inspections for another independent fire district. Fiduciary Fund The Fiduciary Fund is excluded from the government-wide financial statements because the resources of those funds are not available to support the District's programs. The only type of fiduciary fund the District maintains is a Firefighters' Pension Trust Fund,under Florida Statute Chapter 175,which accounts for retirement assets held by the Plan that are payable to qualified firefighters upon retirement. Budgetary Information The District has elected to report budgetary comparisons of its major funds and its non-major fund as required supplementary information(RSI). Investments The District adheres to the requirements of GASB Statement Number 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools," (GASB 31) in which all investments are reported at fair value. Investments, including restricted investments, consist of certificates of deposit, U.S. Government securities, corporate debt and equity securities, and securities of government agencies unconditionally guaranteed by the U.S. Government. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 20 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Capital Assets Capital assets,which include land, construction in progress,buildings, equipment and vehicles, are reported in the government-wide Statement of Net Position. The District follows a capitalization policy which calls for capitalization of all capital assets that have a cost or donated value of$5,000 or more and have a useful life in excess of one year. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Public domain(infrastructure) capital assets consisting of certain improvements other than building, including curbs, gutters and drainage systems, are not capitalized, as the District generally does not acquire such assets. No debt-related interest expense is capitalized as part of capital assets in accordance with GASB 34. Maintenance, repairs and minor renovations are not capitalized. The acquisition of land and construction projects utilizing resources received from Federal and State agencies are capitalized when the related expenditure is incurred. Expenditures that materially increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement,the cost is eliminated from the respective accounts. Expenditures for capital assets are recorded in the fund statements as current expenditures. However, such expenditures are not reflected as expenditures in the government-wide statements, but rather are capitalized and depreciated. Depreciable capital assets are depreciated using the straight-line method over the following estimated useful lives: Capital_Asset Years Buildings 15-30 Capital Assets acquired under Capital Lease 6-10 Office Equipment 3-30 Vehicles 3-10 Equipment and Machinery 3-15 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 21 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting The District adopted separate annual General Fund budgets for each of the two (2) service delivery areas within the District's General Fund. The District adopted annual budgets for the Special Revenue Funds, including the Impact Fee Fund and the Inspection Fee Fund. No budget was adopted or required to be adopted for the Firefighters' Pension Trust Fund. The District follows these procedures in establishing budgetary data for the General Fund, the Impact Fee Fund, and the Inspection Fee Fund: 1. During the summer of each year,the District Fire Chief submits to the Board of Commissioners a proposed operating budget for the fiscal year commencing on the upcoming October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain citizen comments. 3. The budget is adopted by approval of the Board of Commissioners. 4. Budget amounts, as shown in these basic financial statements, are as originally adopted or as amended by the Board of Commissioners. 5. The budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America. 6. The level of control for appropriations is exercised at the fund level. 7. Appropriations lapse at year-end. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 22 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Budgets and Budgetary Accounting, continued Several budget amendments were approved by the Board of Commissioners during the year ended September 30, 2021. Budgeted revenues and expenditures were increased(decreased) as follows: Amount General fund-NN SDA $ 973,767 General fund-BCI SDA 684,728 Total General Fund $ 1,658,495 Impact fee fund $ 853,218 Inspection fee fund $ 763,514 Impact Fees/Deferred Revenue The District levies an impact fee on new construction within the District. The intent of the fee is for growth within the District to pay for capital improvements needed due to the growth. The fee is imposed and collected by Collier County and remitted to the District which accounts for impact fees collected by service delivery area. The fee is refundable if not expended by the District within six (6)years from the date of collection. The District, therefore,records this fee as restricted cash and as unearned revenue until the date of expenditure, at which time it is recognized as revenue and charged to capital outlay in the fund financial statements and capital assets in the government-wide financial statements. Net Position In the government-wide financial statements, net position is identified as restricted when there are externally imposed constraints as to its use, such as through debt covenants, by grantors, or by law. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 23 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Fund Balances The governmental fund financial statements the District maintains include nonspendable,restricted, assigned, and unassigned fund balances. Nonspendable fund balances are those that cannot be spent because they are either(a) not in spendable form or(b) legally or contractually required to be maintained intact. Criteria include items that are not expected to be converted into cash, for example prepaid expenses. Restricted fund balances are those that are restricted by a third party such as inspection fees. Restricted fund balances can only be spent for the stipulated purposes. The District's assigned fund balances are a result of official action of the District's Board. The District's intent is to maintain a minimum assigned fund balance level of three (3) months of budgeted total expenditures. The assigned fund balance includes the District's operational and capital reserves as well as its disaster reserve. At September 30, 2021, fund balance is also assigned for a variety of specific items by District Board action. Any use of the assigned fund balance requires the District's Board approval. Due To/From Other Funds Interfund receivables and payables arise from interfund transactions and are recorded by funds affected in the period in which the transactions are executed. Due From Other Governments No allowance for losses on uncollectible accounts has been recorded since the District considers all amounts to be fully collectible. Indirect Costs Expenses are allocated between service delivery areas on the same line item based upon a Board approved cost allocation plan. For the year ended September 30, 2021, the costs were allocated on a percentage basis of 87.04%to NN SDA and 12.96%to BCI SDA. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 24 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Compensated Absences The District's employees accumulate annual leave based on the number of years of continuous service. Upon termination of employment, employees can receive payment of accumulated annual leave if certain criteria are met. The costs of accumulated annual leave benefits (compensated absences) are expended in the respective operating funds when payments are made to employees. However, the liability for all accrued vacation and personal leave benefits is recorded in the government-wide Statement of Net Position. Encumbrances Encumbrance accounting,under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the District because, at present, it is not necessary in order to assure effective budgetary control or to facilitate effective cash planning and control. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Interfund Transactions The District considers interfund receivables (due from other funds) and interfund payables (due to other funds)to be loan transactions to and from other funds to cover temporary(three months or less) cash needs. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing funds and as reduction of expenditures/expenses in the fund that is reimbursed. Such amounts are eliminated in the government-wide financial statements. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 25 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Pensions In the government-wide Statement of Net Position, liabilities are recognized for the District's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Firefighters'Pension Fund(FPF), the Florida Retirement System(FRS) and the Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments, (including refunds of employees' contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value for the FPF. The District's retirement plans and related amounts are described in a subsequent note. Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources,represents a consumption of net position that applies to future periods and so will not be recognized an as outflow of resources (expense/expenditure)until then. The deferred amount on pensions is reported only in the government-wide Statement of Net Position. The deferred outflows of resources related to pensions 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 is reported only in the government-wide Statement of Net Position. A deferred amount on pension results from the difference in the expected and actual amounts of experience, earnings, and contributions. This amount is deferred and amortized over the service life of all employees that are provided with pensions and OPEB through these plans except earnings which are amortized over five to seven years. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 26 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED Reclassifications Certain amounts in the financial statements have been reclassed to conform with the current presentation. These reclassifications had no effect on the results of operations or fund equity. Subsequent Events Subsequent events have been evaluated through May 13, 2022, which is the date the basic financial statements were available to be issued. NOTE B - CASH AND CASH EQUIVALENTS Cash and cash equivalents of the primary government(exclusive of the Firefighters' Pension Trust Fund)were $18,125,995 of which$5,178,575 was restricted at September 30,2021. Total cash and cash equivalents included cash on hand of $1,300 at September 30, 2021. Deposits The District's deposit policy (exclusive of the Firefighters' Pension Fund) allows deposits to be held in demand deposit and money market accounts and is consistent with Florida Statutes, Chapter 218.415(17). All District depositories are institutions designated as qualified depositories by the State Treasurer at September 30, 2021. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 27 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE B - CASH AND CASH EQUIVALENTS, CONTINUED Deposits, continued Deposits consist of the following at September 30, 2021: District Carrying Bank Amount Balance Unrestricted General Fund Depository Accounts $ 12,858,641 $ 13,246,546 Money Market 88,779 88,779 Total General Fund $ 12,947,420 $ 13,335,325 Restricted General Fund Depository Accounts $ - $ - Special Revenue Funds Impact Fee Depository Accounts $ 4,542,046 $ 4,542,555 Inspection Fee Depository Accounts 636,529 636,529 Total Special Revenue Funds 5,178,575 5,179,084 Total Restricted Funds $ 5,178,575 $ 5,179,084 The District's deposits were entirely covered by federal depository insurance or by collateral pursuant to the Public Depository Security Act(Florida Statute 280) of the State of Florida. Bank balances approximate market value. The District held no other types of deposits during the year ended September 30, 2021. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 28 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE B- CASH AND CASH EQUIVALENTS, CONTINUED Restricted Cash and Equivalents The following is a brief description of the restrictions on cash and cash equivalents: The Impact Fee account is used to account for the deposit of impact fees received by both service delivery areas and are restricted for certain capital asset acquisition associated with growth within the District. Impact fees are collected by Collier County for the District pursuant to County ordinance and District resolution. The Inspection Fee account is used to account for inspection fees collected for performing new construction fire inspections within the District. Such revenue is restricted for inspection service related costs. NOTE C - INVESTMENTS District 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, 2021, the District's investments in the FL FIT-Cash Pool (CP) consist of the following: Fair Value(NAV)/ Cost Carrying Basis Amount General Fund-NN Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 7,457,701 $ 7,457,701 General Fund-BCI Florida Fixed Income Trust FL FIT-Cash Pool(CP) 2,008,402 2,008,402 $ 9,466,103 $ 9,466,103 Impact Fee Fund Florida Fixed Income Trust FL FIT-Cash Pool(CP) $ 709,280 $ 709,280 Total investments $ 10,175,383 $ 10,175,383 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. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 29 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED District, 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, 2021,the Cash Pool's investments consisted of the following: 62% with commercial paper; 17%with institutional money market deposits and mutual funds; and 21%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 which requires the following disclosures 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. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 30 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED District, 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, 2021, 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 was not exposed to foreign currency risk. Securities Lending: Florida Fixed Income Trust(FL FIT) Cash Pool did not participate in securities lending program during the period October 1, 2020 through September 30, 2021. Florida Fixed Income Trust(FL FIT) Cash Pool does provide separate audited financial statements for the year ended June 30, 2021. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 31 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED District, continued At September 30, 2021, the District reported Florida Fixed Income Trust(FL FIT) Cash Pool investments of$10,175,383. 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 79 days at September 30, 2021. The Cash Pool 's current dollar weighted average days to maturity to final(WAL)was 104 days at September 30, 2021. The Cash Pool's duration is as follows: expected target duration 0-5 years, effective duration of 22 years. Rule 2a7 allows funds to use a constant of$1.00 per share. The fund is not currently rated. Firefighters' Pension Plan-Investments Investments held in the Firefighters' Pension Trust Fund(the "Plan")totaled $127,820,985 (including $1,470,008 in cash and cash equivalents, $6,474,522 in mutual funds, $93,494,715 in equity securities, $18,988,379 in fixed income securities, and$7,393,361 in real estate) at September 30, 2021. Such investments are administered in accordance with Firefighters'Pension Board policy. This policy provides for investments in cash and cash equivalents,money markets,mutual funds, equities, treasury notes, federal agency guaranteed securities, corporate bonds, notes and/or equities and real estate. The Firefighters' Pension Trust Fund accounts for resources held to fund the respective firefighter employee pension benefits. The Firefighters' Pension Trust Fund investments were held by a financial and investment institution and are subject to certain insurances up to limits specific to the trustee/custodian institution and retirement trust funds. These assets are subject to loss of principal. Investment Authorization: The Plan's investment policy is determined by the Plan's Board of Trustees. The policy has been designed by the Board to conduct the operations of the Plan in a manner so that the assets will provide the pension and other benefits provided under applicable laws. As such, the policy is designed by the Board to maximize the Plan's asset value,while assuming risk that is consistent with the Board's risk tolerance. The Trustees are authorized to acquire and retain every kind of property (real,personal or mixed) and every kind of investment specifically including,but not by way of limitation, money markets,mutual funds,bonds, debentures, stocks (preferred or NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 32 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Investment Authorization, continued: common) and other corporate obligations. Investments are carried at fair value and/or NAV at September 30, 2021. Interest and dividend revenues are recorded as earned. Purchases and sales of investments are recorded on the trade-date basis. Unrealized gains and losses are presented as net appreciation(depreciation) in fair value of investments on the statement of changes in fiduciary net position along with gains and losses realized on sales of investments. Given the inherent nature of investments, it is reasonably possible that changes in the value of those investments will occur in the near term and that such changes could materially affect the amounts reported(loss of principal). Investment in all equity securities shall be limited to those listed on a major U.S. stock exchange and limited to no more than 80% (at market) of the Plan's total asset value. The equity position in any one company shall not exceed 5% of the Plan's total assets at market. Investments in stock of foreign companies shall be limited to 35% of the value of the Plan's total assets at market. The fixed income portfolio shall be compromised of securities with a quality rating of investment grade or higher by a major rating service. Except for Treasury and Agency obligations, the debt portion of the Plan shall contain no more than 10% of a given issuer irrespective of the number of differing issues. The current target allocation at September 30, 2021, of these investments at market is as follows: Investment Long Term Authorized Policy-Target Expected Real Investments Allocation% Rate Return% Domestic Equities 35-55% 7.5% Fixed Income 15-40% 2.5% TIPS 0-10% Not Available Real Estate 0-15% 4.5% International Equities 10-25% 8.5% International Fixed Income 0-10% 3.5% Global Tactical Asset Allocation 0-15% 3.5% Cash and Cash Equivalents Minimal Minimal NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 33 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally,the longer the maturity of an investment,the greater the sensitivity of its fair value to change in market interest rates. As a means of limiting its exposure to interest rate risk,the Plan diversifies its investments by security type and institution, and limits holdings in any one type of investment with any one issuer with various durations of maturities. Information about the sensitivity of the fair values of the Plan's fixed income investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Plan's investment by maturity at September 30, 2021: Investment Maturities(in years) Investment Type Fair Value Less than 1 1 to 5 6 to 10 More than 10 Corporate bonds $ 9,271,786 $ 848,000 $ 2,797,104 $ 3,778,892 $ 1,847,790 Mutual funds-Int'l 6,474,522 332,144 969,883 679,177 4,493,318 U.S.Agencies 6,535,466 - 2,966 86,040 6,446,460 U.S.Treasuries 3,181,127 - 149,492 899,509 2,132,126 $ 25,462,901 $ 1,180,144 $ 3,919,445 $ 5,443,618 $ 14,919,694 Credit Risk: Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The Plan's investment policy utilizes portfolio diversification in an effort to mitigate this risk. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 34 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Credit Risk, continued: The following table discloses credit rating by fixed income investment type at September 30, 2021, if applicable: Fair Percentage of Value Portfolio Quality rating of credit risk debt securities A $ 1,556,475 1.22% Al 260,843 0.20% A2 1,361,582 1.07% A3 2,189,478 1.71% AA 988,660 0.77% Aal 58,438 0.05% Aa2 166,499 0.13% Aa3 136,681 0.11% AAA 6,071,751 4.75% B 163,805 0.13% Bal 29,787 0.02% Baal 2,462,988 1.93% Baa2 1,533,765 1.20% Baa3 896,784 0.70% BB 396,888 0.31% BBB 1,733,877 1.36% Unrated government securities* 5,454,600 4.27% Total credit risk debt securities $ 25,462,901 19.92% * Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not have purchase limitations. Concentration of Credit Risk: The investment policy of the Plan contains limitations on the amount that can be invested in any one equity issuer as well as maximum portfolio allocation percentages. There were no individual equity investments that represented 5% or more of Plan net position at September 30, 2021. In addition,the Plan contains limitations on the amount that can be invested in any one debt issuer, except for the debt securities issued by the U.S. Government. There were no investments in non-U.S. Government debt securities that represented 10% or more of Plan net position at September 30, 2021. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 35 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan - Investments, continued Custodial Credit Risk: This is the risk that in the event of the failure of the counterparty,the plan will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. This risk is generally measured by the assignment of a rating by a nationally recognized statistical rating organization. Consistent with the Plan's investment policy, the investments are held by the Plan's custodial bank and registered in the Plan's name. Foreign Currency Risk: This is the risk that fluctuations in currency exchange rate may affect transactions conducted in currencies other than U.S. Dollars and the carrying value of foreign investments. The Plan's primary exposure to foreign currency risk is derived from its direct investments in international equity and fixed income mutual funds. The Plan owns shares in international equity and international bond funds. In accordance with the Plan's investment policy statement, the US equity and fixed income separate account managers may invest in individual securities designated as foreign as part of the normal course of the investment process. The individual foreign securities may be American Depository Receipts, or NYSE common stock, both transacted in US dollars, or foreign ordinary securities transacted in foreign currency. The investment policy limits the foreign investments to no more than 35% of the Plan's investment balance in equities and no more than 10% in fixed income. As of September 30, 2021, the Plan's exposure to foreign currency risk related to foreign equity funds and bonds is approximately 23% of the portfolio. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 36 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Fair Value Measurements: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan categorizes its fair value measurements within the fair value hierarchy as established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market as follows: Level 1 -Inputs to the valuation methodology are based upon quoted prices for identical assets in active markets. Level 2 - Inputs to the valuation methodology are based upon observable inputs for the assets either directly or indirectly, other than those considered Level 1 inputs. which may include quoted prices for identical assets in markets that are not considered to be active, and quoted prices of similar assets in active or inactive markets. Level 3 - Inputs to the valuation methodology are based upon unobservable inputs. Following is a description of the valuation methodologies used for asset measured at fair value. Common stock: Valued at the closing price reported on the New York Stock Exchange. Government securities: Valued using pricing models maximizing the use of observable inputs for similar securities. Mutual funds: Valued at the daily closing price as reported by the Plan. Mutual funds held by the Plan are open-ended mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded. Corporate bonds: Valued using pricing models maximizing the use of observable inputs for similar securities. This includes basing the value on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued under a discounted cash flows approach that maximizes observable inputs, such NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 37 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments, continued Fair Value Measurements, continued: as current yield of similar instruments,but included adjustments for certain risks that may not be observable, such as credit and liquidity risks or a broker quote, if available. Real estate: Valued at the net asset value of shares held by the Plan at year end. The Plan has investments in private market real estate investments for which no liquid public market exists. Money market funds: Valued at the floating net asset value (NAV) of shares held by the Plan at year end. The following table presents the Plan's fair value hierarchy for investments at fair value as of September 30, 2021: Fair Value Measurements Using Quoted Prices in Significant Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level I) (Level 2) (Level 3) Investments by fair value level Equity securities: Common stocks $ 28,213,370 $ 28,213,370 $ - $ - Foreign stocks 2,791,218 2,791,218 - - Domestic equity mutual funds 43,552,745 - 43,552,745 - International equity mutual funds 18,937,382 - 18,937,382 - REIT - - - - Total equity securities 93,494,715 31,004,588 62,490,127 - Debt securities U.S.treasury securities 3,181,127 3,181,127 - - U.S.agency securities 6,535,466 - 6,535,466 - Corporate bonds 9,271,786 - 9,271,786 - Fixed income mutual funds-int'l 6,474,522 - 6,474,522 - Total debt securities 25,462,901 3,181,127 22,281,774 - Total investments by fair value 118,957,616 $ 34,185,715 $ 84,771,901 $ - Investments measured at the net asset value(NAV Real estate fund 7,393,361 Money market funds(exempt) 1,470,008 Total investments $ 127,820,985 * As required by GAAP,certain investments have not been classified in the fair value hierarchy. The fair value amounts presented in the previous table are intended to permit reconciliation for the fair value hierarchy to the total investment line item in the Statement of Fiduciary Net Position. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 38 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE C - INVESTMENTS, CONTINUED Firefighters' Pension Plan-Investments,continued Fair Value Measurements, continued: The following table summarizes investment for which fair value is measured using the net asset value per share practical expedient, including their relate unfunded commitments and redemption restrictions: Investments measured at the NAV Redemption Unfunded Frequency(if Redemption Fair Value Commitments Currently Eligible Notice Period Real estate fund $ 7,393,361 $ - Quarterly 90 Days Real estate fund: The fund is an open-ended real estate investment fund investing primarily in core institutional office,retail, industrial, and multi-family properties located throughout the United States. The investment is valued at NAV and its redemption must be received by the fund 90 days prior to quarter end. NOTE D - DUE TO/FROM OTHER FUNDS Interfund receivables and payables at September 30, 2021, are as follows: Due from Due to Fund Other Funds Other Funds General Fund: Impact Fee Fund $ - $ 16,733 Inspection Fee Fund 40 - Total General Fund 40 16,733 Special Revenue Funds: Impact Fee Fund General Fund 16,733 - Inspection Fee fund - - Inspection Fee Fund General Fund - 40 Impact Fee Fund - - Total Special Revenue Funds 16,733 40 Total $ 16,773 $ 16,773 Interfund receivables and payables were eliminated for presentation purposes in the Statement of Net Position at September 30, 2021. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 39 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE E - CAPITAL ASSETS ACTIVITY The following is a summary of changes in capital assets activity for the year ended September 30, 2021: Balance Balance October 1 Increases/ Decreases/ Adjustments/ September 30 2020 Additions Retirements Reclassifications 2021 Capital Assets Not Being Depreciated: Land $ 15,712,989 $ - $(2,889,872) $ - $ 12,823,117 Construction in progress 1,319,431 - (18,533) - 1,300,898 Equipment in Transit - 1,212,857 - - 1,212,857 Total Capital Assets Not Being Depreciated 17,032,420 1,212,857 (2,908,405) - 15,336,872 Capital Assets Being Depreciated: Assets held under capital lease 4,266,045 1,106,574 (43,702) - 5,328,917 Buildings 21,283,328 224,866 - - 21,508,194 Office equipment 1,546,311 50,991 (55,214) - 1,542,088 Vehicles 8,476,780 294,685 (102,296) - 8,669,169 Equipment&machinery 3,941,483 280,704 (497,083) - 3,725,104 Total Capital Assets Being Depreciated 39,513,947 1,957,820 (698,295) - 40,773,472 Less Accumulated Depreciation: Assets held under capital lease (1,412,562) (549,682) 43,702 - (1,918,542) Buildings (9,186,739) (813,695) - - (10,000,434) Office equipment (967,237) (178,072) 55,214 - (1,090,095) Vehicles (7,197,089) (334,457) 95,918 - (7,435,628) Equipment&machinery (3,090,173) (209,370) 494,277 - (2,805,266) Total Accumulated Depreciation (21,853,800) (2,085,276) 689,111 - (23,249,965) Total Capital Assets being Depreciated,Net 17,660,147 (127,456) (9,184) - 17,523,507 Capital Assets,Net $ 34,692,567 $ 1,085,401 $ (2,917,589) $ - 32,860,379 Related Debt (3,079,933) Net investment in capital assets $29,780,446 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 40 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE E - CAPITAL ASSETS ACTIVITY, CONTINUED Depreciation expense was charged to the following functions during the year ended September 30,2021: Amount General Government Total Depreciation Expense $2,085,276 The District has capital assets held under capital leases with a total cost of $5,328,917 at September 30,2021. The capital assets held under capital lease has accumulated depreciation of$1,918,542 and depreciation expense of$549,682 (included in total depreciation expense)for the year ended September 30,2021. NOTE F- LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30,2021: Balance Retirements Balance Amounts October 1 And September 30 Due Within 2020 Additions Adjustments 2021 One Year Net OPEB Liability $ 9,980,141 $ 750,645 $ - $10,730,786 $Net Pension Liability-FRS 9,403,419 - (7,916,491) 1,486,928 Net Pension Liability-HIS 1,736,428 13,565 - 1,749,993 Net Pension Liability-FPT 8,212,936 - (10,433,669) (2,220,733) - Capital Leases 2,545,857 1,106,574 (687,498) 2,964,933 761,312 Note Payable-Station 172,500 - (57,500) 115,000 57,500 Compensated Absences 2,335,073 82,255 - 2,417,328 - $34,386,354 $ 1,953,039 $(19,095,158) $17,244,235 $ 818,812 The following is a summary of long-term obligations at September 30, 2021: Amount Net OPEB liability-actuarially determined-GASB No.75 $ 10,730,786 Net pension liability-FRS pension plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida FRS Plan. 1,486,928 Net pension liability-HIS plan. This amount is actuarially determined through calculation based upon the audited financial statements of the Florida FRS Plan. 1,749,993 Net pension liability-Firefighters'Pension Trust(FPT)plan. This amount is actuarially determined through calculation based upon the audited financial statements of the FPT Plan. (2,220,733) NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 41 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE F- LONG-TERM OBLIGATIONS, CONTINUED Amount $1,106,574 capital lease payable dated December 28,2020,for heart monitor equipment to a financial institution over a 60 month period beginning December 28,2020 and ending December 28,2025 in equal monthly payments of$19,347 at 1.9% 947,210 $445,486 capital lease payable dated May 20,2019,for radio equipment to a financial institution over a 7 year period ending June 1,2026 in equal annual payments of$77,900 at a 5.2%fixed interest rate. 334,252 $207,812 capital lease payable dated December 12,2019,for six staff vehicles to a financial institution over a 5 year period ending December 31,2024 in equal monthly payments of$3,918 at a 5.14%fixed interest rate. 137,136 $2,546,268 capital lease payable dated January 15,2016 for one(1)ladder truck and three(3)pumper trucks payable to a financial institution in ten (10)annual payments of$295,233 ending December 14,2025 including interest at 2.822%. 1,358,975 $888,147 capital lease payable beginning May 1,2018 for a ladder truck payable to a financial institution in five(5)annual payments of$192,494 ending May 1,2022 including interest at 2.74%. 187,360 $1,150,000 note payable dated January 15,2003 for BC!Station to a financial institution over a 20 year period ending November 1,2022 in equal annual principal payments on November 1 of$57,500 plus accrued interest at a variable rate of 120%of the 5 year treasury rate.The note is collateralized by Impact Fees. Interest rate at September 30,2021 was.42732%. 115,000 Non-current portion of compensated absences. Employees of the District are entitled to paid vacation based on length of service and job classification.(Combined SDA) 2,417,328 17,244,235 Less Current Portion (818,812) Long-Term Portion $ 16,425,423 The annual debt service requirements at September 30,2021,were as follows: Capital Capital Capital Capital Capital Note Years Ending Leases Payable Leases Payable Leases Payable Leases Payable Leases Payable Payable Total September 30 Principal(1) Principal(1) Principal(1) Principal(1) Principal(1) Principal(2) Principal 2022 $ 216,047 $ 60,099 $ 40,925 $ 256,881 $ 187,360 $ 57,500 $ 818,812 2023 220,188 63,299 43,079 264,131 - 57,500 648,197 2024 224,408 66,671 45,346 271,585 - - 608,010 2025 228,709 70,221 7,786 279,249 - - 585,965 2026 57,858 73,962 - 287,129 - - 418,949 $ 947,210 $ 334,252 $ 137,136 $ 1,358,975 $ 187,360 $ 115,000 3,079,933 Net OPEB Liability 10,730,786 Net Pension Liability-FRS 1,486,928 Net Pension Liability-HIS 1,749,993 Net Pension Liability-FPT (2,220,733) Compensated absences 2,417,328 Total long-term debt $ 17,244,235 (1)Debt service paid through General Fund (2)Debt service paid through Impact Fee Fund Interest expense for the year ended September 30,2021,was$101,223 including interest expense on capital leases of$99,275. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 42 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS The following three retirement plans have been established by the District: Plan 1 - Florida Retirement System(FRS) including HIS Plan 2 -Firefighters' Pension Trust Fund (Florida Statute 175) Plan 3 -401(a) Plan Employee participation in a specific plan is based on the respective employee's original hire date. General Information about the Florida Retirement System The Florida Retirement System("FRS") was created in Chapter 121, Florida Statutes. The FRS was created to provide a defined benefit pension plan("Pension Plan") for participating public employees. All District employees are participants in the Statewide Florida Retirement System(FRS)under authority of Article X, Section 14 of the State Constitution and Florida Statutes, Chapters 112 and 121. The FRS was amended in 1998 to add the Deferred Retirement Option Program("DROP") under the defined benefit plan and amended in 2000 to provide an integrated defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a separate cost-sharing,multiple-employer defined benefit pension plan to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the District are eligible to enroll as members of the State-administered FRS except those already participating in Plan 2. 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, 2021, is available from the Florida Department of Management Services'Website (www.dms.myflorida.com). NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 43 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED General Information about the Florida Retirement System, continued The District's total FRS and HIS pension expense (credit) was ($634,472) for the year ended September 30, 2021 and is recorded in the government-wide financial statements. Total District actual FRS and HIS retirement contribution expenditures were $899,337, $833,435 and$954,512 for the years ended September 30, 2021, 2020 and 2019, respectively. The District contributed 100% of the required contributions. FRS Pension Plan Plan Description. The FRS Pension Plan("Plan") is a cost-sharing, multiple- employer defined benefit pension plan,with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class-Members of the FRS who do not qualify for membership in the other classes. Senior Management Service Class(SMSC)-Members in senior management level positions. Special Risk Class-Members who are employed as certified firefighters and meet the criteria to qualify for this class. Elected Officials-Members who are elected by the voters within the District boundaries. Employees enrolled in the Plan prior to July 1, 2011, vest at six years of creditable service and employees enrolled in the Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for those members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Members of both Plans (Pension and HIS) may include up to 4 years of credit for military service toward creditable service. The Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The Plan provides retirement, disability, death benefits, and annual cost of living adjustments to eligible participants. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 44 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued DROP, subject to provisions of Section 121.091, Florida Statutes,permits employees eligible for normal retirement under the Plan to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided. Benefits under the Plan are computed on the basis of age, and/or years of service, average final compensation, and credit service. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011,the average final compensation is the average of the five highest fiscal years' earnings; for the members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on retirement plan and/or the class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors' benefits. The following chart shows the percentage value of each year of service credit earned: Class,Initial Enrollment,and Retirement Age/Years of Service %Value Regular Class and elected members initially enrolled before July 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 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 45 of 11 1 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1,2011,there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3 percent. Plan members initially enrolled on or after July 1, 2011,will not have a cost-of-living adjustment after retirement. Contributions. The Florida Legislature establishes contribution rates for participating employers and employees. Contribution rates during the year ended September 30, 2021 were as follows: Percent of Gross Salary* Class Employee Employer(1) Employer(3) Florida Retirement System,Regular 3.00 10.00 10.82 Florida Retirement System,Senior Management Service 3.00 27.29 29.01 Florida Retirement System,Special Risk 3.00 24.45 25.89 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 16.98 18.34 Florida Retirement System,Reemployed Retiree (2) N/A N/A Florida Retirement System,Elected Official 3.00 49.18 51.42 Notes: (1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/20-6/30/21. (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 7/1/21-6/30/22. * As defined by the Plan. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 46 of 11l NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued Pension Liabilities, Pension Expense,Deferred Outflows of Resources and Deferred Inflows of Resources Related to the Pension Plan. At September 30, 2021, the District reported an FRS pension liability of$1,486,928 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The District's proportionate share of the net pension liability was based on the District's 2020-21 fiscal year contributions relative to the total 2020-21 fiscal year contributions of all participating members. At September 30, 2021,the District's proportionate share was .019684338 percent, which was a decrease of.002011784 percent from its proportionate share measure as of September 30, 2020. For the year ended September 30, 2021, the District recognized FRS pension expense (credit) of($596,404). 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 $ 254,862 $ - Change of assumptions 1,017,431 Net difference between projected and actual earnings on pension plan investments - 5,187,520 Changes in proportion and differences between District contributions and proportionate share of contributions 93,723 2,535,745 District contributions subsequent to the measurement date 211,807 - Total $ 1,577,823 $ 7,723,265 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 47 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued The deferred outflows of resources related to the FRS pension, totaling $211,807 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, 2022. 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 5.7 years as follows: Fiscal Years Ending September 30 Amount 2022 $ (1,545,758) 2023 (1,545,758) 2024 (1,545,758) 2025 (1,545,758) 2026 (248,878) Thereafter 74,661 Total $ (6,357,249) 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, 2021 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. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 48 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Compound Annual Annual Target Arithmetic (Geometric) Standard Asset Class Allocation(1) Return Return Deviation Cash 1.0% 2.1% 2.1% 1.1% Fixed income 20.0% 3.8% 3.7% 3.3% Global equity 54.2% 8.2% 6.7% 17.8% Real estate(property) 10.3% 7.1% 6.2% 13.8% Private equity 10.8% 11.7% 8.5% 26.4% Strategic investments 3.7% 5.7% 5.4% 8.4% Total 100.0% Assumed inflation-Mean 2.4% 1.2% (1)As outlined in the Plan's investment policy Money-weighted Rate of Return. The annual money-weighted rate of return on FRS Pension Plan investments for the year ended June 30, 2021 was 30.41%. 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. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 49 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS Pension Plan, continued Sensitivity of the District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the District's proportionate share of the net pension liability calculated using the discount rate of 6.80 percent which was reduced from 6.90%, 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 pension liability $ 6,649,642 $ 1,486,928 $ (2,828,522) Pension Plan Fiduciary Net Position. Detailed information about the pension plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Systems Comprehensive Annual Financial Report(FRS "CAFR") dated June 30, 2021. 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, 2021,the District reported a payable of$0 for the outstanding amount of contributions in the Pension Plan. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 50 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan Plan Description.The Health Insurance Subsidy Plan("HIS Plan")is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Division of Retirement within the Florida Department of Management Services. Benefits Provided. For the year ended September 30, 2021, 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 30,2021, the contribution rate ranged between 1.66 percent and 1.66 percent of payroll pursuant to Section 112.363, Florida Statutes. The District contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants,benefits may be reduced or cancelled. Pension Liabilities, Pension Expense,Deferred Outflows of Resources and Deferred Inflows of Resources Related to the HIS Plan. At September 30, 2021,the District reported a HIS liability of$1,749,993 for its proportionate share of the net HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2021, and the total pension liability was used to calculate the net pension liability 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 2020-21 fiscal NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 51 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan, continued year contributions relative to the total 2020-21 fiscal year contributions of all participating members. At September 30, 2021,the District's proportionate share was .014266437 percent, which was an increase of.000044888 percent from its proportionate share measured as of September 30, 2020. For the fiscal year ended September 30, 2021, the District recognized HIS expense (credit) of($38,068). 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 $ 58,559 $ 733 Change of assumptions 137,509 72,104 Net difference between projected and actual earnings on HIS pension plan investments 1,824 - Changes in proportion and differences between District HIS contributions and proportionate share of HIS contributions 73,997 502,644 District contributions subsequent to the measurement date 22,414 - Total $ 294,303 $ 575,481 The deferred outflows of resources related to HIS, totaling $22,414 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, 2022. 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 6.4 years as follows: Fiscal Years Ending September 30 Amount 2022 $ (56,103) 2023 (56,103) 2024 (56,103) 2025 (56,103) 2026 (56,559) Thereafter (22,621) Total $ (303,592) NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 52 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED 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 2.16 percent Actuarial 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 hay been completed for the Plan. Discount Rate. The discount rate used to measure the total HIS liability was decreased from 2.21 %to 2.16%. 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 2.16 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(1.16 percent) or 1-percentage-point higher(3.16 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (1.16%) (2.16%) (3.16%) District's proportionate share of the net HIS liability $ 2,023,161 $ 1,749,993 $ 1,526,193 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 53 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED HIS Plan, continued Pension Plan Fiduciary Net Position. Detailed information about the HIS plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State Administered Comprehensive Annual Financial Report(FRS "CAFR") dated June 30, 2021. The FRS CAFR and actuarial reports may also be obtained by contacting the Division of Retirement at: Department of Management Services Division of Retirement Bureau of Research and Member Communications P.O. Box 9000 Tallahassee, FL 32315-9000 850-488-5706 or toll free at 877-377-1737 http://www.dms.myflorida.com/workforce operations/retirement/publications Payables to the Pension Plan. At September 30,2021, the District reported a payable of$0 for the outstanding amount of contributions to the HIS plan. FRS-Defined Contribution Pension Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan(Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. District employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.) as the FRS defined benefit plan. Contributions NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 54 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS - Defined Contribution Pension Plan, continued are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2020-21 fiscal year were as follows: Percent of Gross Salary* Class Employee Employer(1) Employer(3) Florida Retirement System,Regular 3.00 10.00 10.82 Florida Retirement System,Senior Management Service 3.00 27.29 29.01 Florida Retirement System,Special Risk 3.00 24.45 25.89 Deferred Retirement Option Program-Applicable to Members from All of the Above Classes 0.00 16.98 18.34 Florida Retirement System,Reemployed Retiree (2) N/A N/A Florida Retirement System,Elected Official 3.00 49.18 51.42 Notes: (1) Employer rates include 1.66 percent for the post employment health insurance subsidy. Also, employer rates,other than for DROP participants,include.06 percent for administrative costs for the Investment Plan. Rates for 7/1/20-6/30/21. (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 7/1/21-6/30/22. * 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, 2021, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the District. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 55 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED FRS-Defined Contribution Pension Plan, continued After termination and applying to receive benefits,the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The District's Investment Plan pension expense included within the FRS expense totaled $113,943 for the year ended September 30, 2021. Payables to the Investment Plan. At September 30, 2021, the District reported a payable of$0 for the outstanding amount of contributions to the Plan. Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund The following brief description of the North Collier Fire Control and Rescue District Firefighters' Pension Plan(originally known as the North Naples Firefighters' Pension Plan) (the "Plan") is provided for general information purposes only. The Plan's name changed effective January 1, 2015 with the District's merger. Participants should refer to the Plan agreement for a more complete description of the Plan. On July 11, 1996, under the authority of Florida Statute 175 and Laws of Florida, Chapter 95-338, the District's Board of Commissioners passed Resolutions 96-004 and 96-005,providing for the establishment and funding of a single employer defined benefit retirement plan and trust for newly hired fire suppression personnel effective January 1, 1996. The resolutions establish that certified firefighters hired on or after January 1, 1996 are to become participants in the District's Firefighters' Pension Trust( FPT) Fund. The Plan is totally administered, including all investment management, by a third party administrator and the Plan's appointed 5 member Pension Board of Trustees. Effective October 1, 2011, employee participants were required to contribute 3% (similar to FRS) of compensation(an increase from .5% of compensation)per Resolution 11-031. Effective January 1, 2019, employee participants are required to contribute 8.48% of their compensation to the Plan. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 56 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Effective January 1, 2015, employees of the Big Corkscrew Island(BCI) Fire District merged with those of North Naples Fire District. As such, five employees of BCI joined Plan 2, the Firefighters' Pension Trust Fund. During the year ended September 30, 2015,the District adopted Governmental Accounting Standards Board Statement No. 68 "Accounting and Financial Reporting for Pensions" (GASB 68). As such,the Plan's beginning net position was restated and the net pension liability was recorded in the government-wide financial statements. During the years ended September 30, 2021, 2020, and 2019 there were employee contributions in the amount of$1,342,040, $1,257,090, and$1,027,420, respectively, to the Plan. The employer contributed 100% of its required contributions, as well as those required contributions of the participating firefighters (0.5%pick-up). The Plan provides for full-time firefighting personnel to become eligible to participate in the Plan immediately upon hire. Under District resolution 96-005,the District elected to pay the 0.5% (1%prior to December 9, 2004) employee required contribution on behalf of the employee. Effective December 9, 2004, the employee contribution was reduced to 0.5% (employee pick up). Effective July 1, 2001 (per resolution 01-01),benefits under the Plan vest after six years of creditable service. Employees who elect normal retirement at or after age 55 with 6 years of creditable service, or 25 years of service regardless of age, are entitled to a retirement benefit. Effective October 1, 2011, required employee contributions increased to 3% of compensation. Employees may elect early retirement after 6 years of creditable service with a reduction in benefit not to exceed 3% for each year before normal retirement. The Plan also includes certain disability and death benefits. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 57 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions - Firefighters' Pension Trust Fund, continued Contributions -Contributions to the Plan are derived from three sources: the Plan's participants are required to contribute to the Plan in the amount of 3%of their covered wages and pursuant to resolution 11-031 the District has elected to increase the affected employees' salary by 0.5% (employer pick-up), State funds (fire [hazard] insurance premium excise tax per Florida Statute Chapter 175) and employer(remaining amount necessary to meet actuarial requirement). For the period from January 1, 1996 through September 30, 1996,no employer contributions were required. Employer contributions were required beginning October 1, 1996. The State contributions under Chapter 175 began in June 1997. This revenue is based on property hazard insurance premium excise tax paid within the District and is applied up to an approved"frozen" limit of$1,746,716. The District (employer) is required to fund the difference each year between the total contributions from all other sources for the year and the total cost for the year pursuant to the most recent actuarial valuation of the Plan. The total cost for any year equals total normal cost plus the additional amounts sufficient to amortize the unfunded past service liability over a 30 year period commencing the first year of the Plan's inception. Effective January 1, 2019, Resolution 18-031 was adopted, which implemented and increase in the benefit multiplier to 3.53% for all years of service for all active members and an increase in the member contribution rate to 8.48% (3.0%prior to January 1, 2019). The District shall pay 0.5% of the member contributions. Pursuant to Florida law, the District is ultimately responsible for making sure the Plan remains actuarially sound. Therefore, each year, the District must contribute an amount determined by the Board in conjunction with their actuary to be sufficient, along with the participant's contribution and the State contribution, to fund the benefits under the Plan. The employer's contribution will vary from year to year. Pursuant to Chapter 175, Florida Statutes,the District imposed a 1.85% excise tax on property hazard insurance premiums paid to insure real or personal property within the District. The proceeds of this tax are contributed to this Plan as are of the District's contribution. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 58 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions-Firefighters' Pension Trust Fund, continued Pursuant to the actuarial study dated October 1,2020 for the year ended September 30, 2021, the District's contribution(District only)requirement was 33.02%of the actuarially determined covered payroll. Actual District contributions to the Plan for the years ended September 30, 2021, 2020 and 2019, were $3,606,617, (including District contributions of$3,334,201 and application of unearned revenue of $272,416) $2,306,381 (includes cash of$2,041,502 and application of unearned revenue of$264,879), and$2,769,139,respectively. The State contributions (excise tax) for the years ended September 30, 2021, 2020 and 2019 were $1,891,478, $1,805,743, and$1,874,326,respectively. Employees contributed(3%prior to January 1, 2019 and 8.48% after December 31, 2018) $1,342,040, $1,257,090 and$1,027,420 to the Plan for the years ended September 30, 2021, 2020 and 2019, respectively. At September 30, 2021, the Plan's total net position was restricted for retiree benefits. Payables to the Pension Plan. At September 30, 2021, the District reported a payable of$0 for the outstanding amount of contributions payable to the pension plan. Pension Benefits - Effective July 1, 2001, employees with 6 or more years of service are entitled to monthly pension benefits,beginning at the earlier of age 55 with 6 years of credited service or 25 years credited service regardless of age. Benefit is equal to 3.53% of their average final compensation(AFC) times credited service prior to October 1, 2013 plus 3% of average final compensation times credited service on and after October 1, 2013. AFC means the average of the highest five (5) years within the last ten(10)years of service. Maximum benefit is 100% of AFC. The Plan permits early retirement with 6 years (10 years prior to July 2, 2001) of credited service. Members hired after December 31, 2014 must have 10 years of credited service to qualify for early retirement. Employees may elect to receive their pension benefits in the form of a 10 year certain and life annuity. If employees terminate before rendering 10 years of credited service, they forfeit the right to receive the portion of their accumulated Plan benefits. All retirement benefits are annually increased for cost of living at 3%. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 59 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Death and Disability Benefits -Upon the death of any vested member, whether or not still in active employment, a survivor benefit is payable to the beneficiary starting when the member would have reached retirement age. The benefit is equal to the vested pension benefit and is payable for 10 years. The Minimum line of duty death benefit is 50% of the participant's salary,which is payable either to the participant's spouse or minor children. This line of duty death benefit is payable to the spouse for life, or to age 18 for the children. Effective July 1, 2019 and in accordance with Chapter 2019-21, Laws of Florida, the Plan must consider a firefighter to have died in the line of duty if he or she dies as a result of cancer or circumstances that arise out of the treatment of cancer. Employees who become totally disabled receive the greater of the accrued pension benefit or 25% of AFC, if non-service incurred, or 42% of AFC, if active service incurred. Effective December 9, 2004,the active service related benefit was increased to 65%. Effective July 1, 2019 and in accordance with Chapter 2019-21, Laws of Florida, the Plan must consider a firefighter totally and permanently disabled in the line of duty if he or she meets the Plan's definition of totally and permanently disabled due to the diagnosis of cancer or circumstances that arise out of the treatment of cancer. Supplemental Benefits-Effective December 31, 2004, each service and disability retiree and their joint pensioners or beneficiaries and vested terminated members shall receive a supplemental payment to be used as a health insurance subsidy payment. The amount shall be five dollars ($5) for each full year of credited service for life. The maximum monthly supplement is one hundred fifty dollars ($150) and the minimum thirty dollars ($30). DROP -Effective December 12, 2013, Resolution 13-034 was adopted, which established a Deferred Retirement Option Plan("DROP"). An"eligible participant" of the pension plan, which is defined as an individual currently on full-time work status, may elect to participate in the DROP on the first day of the month coincident with or NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 60 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued next following either, attainment of age fifty-five (55) and the completion of ten(10) years of credited service, or the completion of twenty-five (25) years of credited service, which date shall constitute the "initial date of eligibility". An eligible participant electing to participate in DROP must complete and execute such forms as may be required by the District and supplied by the Board of Trustees not less than thirty(30) days prior to entering the DROP. The forms shall include, but not limited to, an irrevocable letter of resignation effective no later than the conclusion of the maximum period of DROP participation. Election into the DROP is irrevocable provided there shall be no minimum period of participation; however in the event of a voluntary termination prior to the maximum period, any DROP participant termination prior to such maximum DROP period shall submit a written notice at least thirty(30) days prior to such early termination of DROP participation. An eligible participant may elect to participate in the DROP only once. After commencement of participation in DROP, a participant shall no longer earn, accrue or purchase additional service credits towards retirement benefits or later enhancements to the firefighters'pension plan. Upon the effective date of an eligible participant's participation in DROP, all contributions by and on behalf of the participant to the plan shall be discontinued. For all plan purposes, service and vesting credits of an eligible participant electing DROP shall be fixed as of the effective date of commencement of DROP participation. Any services as a firefighter after entry into DROP shall not be used for calculation or determination of benefits payable by the pension plan. The average final compensation of a participant, as defined in this plan shall be determined as of the effective date of commencement of DROP participation and other subsequent earnings shall not be used for calculation or determination of benefits payable by the pension plan. Income Recognition-Interest income is recorded on the accrual basis. Investments are reported at market value. Short-term investments are reported at cost, which approximates market value. Actuarial Present Value of Accumulated Plan Benefits-Accumulated plan benefits are those future periodic payments, including lump-sum distributions,that NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 61 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued are attributable under the Plan's provisions to the service employees have rendered. Accumulated plan benefits include benefits expected to be paid to (a)retired or terminated employees or their beneficiaries, (b)beneficiaries of employees who have died, and(c)present employees or their beneficiaries. Benefits under the Plan are based on employees' age at entry to the Plan and are based upon the current starting salary for firefighters at entry level. Benefits payable under all circumstances, retirement, death, disability and termination of employment, are included, to the extent they are deemed attributable to employee service rendered to the valuation date. The actuarial present value of accumulated plan benefits is determined by an actuary and is the amount that results from applying actuarial assumptions to adjust the accumulated plan benefits to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability,withdrawal, or retirement)between the valuation date and the expected date of payment. The significant actuarial assumptions used in the valuations as of October 1, 2020 were (a) life expectancy of participants -MP 2018 (combined healthy, sex distinct)Mortality Table was used, (b)retirement age assumptions (the assumed average retirement age was 55), (c) annual investment return of 7.0% (net of fees) and (d) the rate of inflation at 2.5%. The actuarial valuation reflected assumed average rates of return of 7.0% (net of fees). The foregoing actuarial assumptions are based on the presumption that the Plan will continue. If the Plan terminated, different actuarial assumptions and other factors might be applicable in determining the actuarial present value of accumulated plan benefits. The actual money-weighted rate of return on Plan assets was 20.28%. Payment of Benefits -Benefit payments to participants are recorded upon distribution. The District contributed 100% of the required contributions. A summary of certain Plan details and trend information is included below. A copy of the Plan and Plan audit as of and for September 30, 2021 can be obtained by writing to the District at 1885 Veterans Park Drive, Naples, Florida 34109-0492, or by calling(239) 597-3222. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 62 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued The following is a summary of the Single-Employer Defined Benefit Pension Plan (Florida Statutes Chapter#175), including funding policies, contribution methods, benefit provisions and trend information: Firefighters'Pension Trust Fund-Plan 2 Year established and governing authority District Resolution 96-004(July 11, 1996) Governing body Board of Trustees of Plan Determination of contribution requirements: Actuarially determined Employer(District) Amount required in excess of Member and applicable State contributions needed in order to pay current costs and amortize any unfunded past service cost over 30 years Plan members 3.0%of covered payroll-prior to 1/1/19 8.48%of covered payroll-after 12/31/18 Funding of administrative costs: Employer Period required to vest 10 years Annual salary increase Graduated Scale based on Credited Service(see below) Post retirement benefit increase Cost of living increase of 3%each year Eligibility for distribution Earlier of 55 with 6 years of credited service or (Normal retirement) 25 years credited service regardless of age Provisions for: Disability benefits Yes Death benefits Yes Early retirement Yes Assumed inflation 2.5% Actuarial assumption/method changes since prior valuation: Actuarial Cost Method Entry Age Normal actuarial cost method.Prior valuations utilized Frozen Amortization Method Level Dollar Amount,Closed Remaining Amortization Period 27 years(as of 10/1/17) Net-of-Fees Investment Return 7.00% Annual Salary Increase Flat 6%per year to graduated scale(9%per year for first 10 years&3%per year for 10+years) Actuarial valuation date October 1,2020 Measurement date September 30,2021 Actuarial Experience Study August 6,2019 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 63 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Net Pension Liability of the Fund-The components of the actuarially determined net pension liability of the District at September 30, 2021 were as follows: Amount Total pension liability $ 126,276,949 Plan fiduciary net position (128,497,682) District's net pension liability $ (2,220,733) Plan fiduciary net position as a percentage of the total pension liability 101.76% The total pension liability was determined by an actuarial valuation as of October 1, 2020 and updated to the measurement date of September 30, 2021 using certain actuarial assumptions, the most significant of which were 7.0 percent for the investment rate of return(net of fees), 3.0-9.0 percent for projected salary increases and 2.5 percent for inflation. Mortality rates were based on the MP-2018 Combined Healthy Mortality Table. Disabled lives are set forward two years for females and set back four years for males. The Plan's policy with regards to the allocation of invested assets is established and may be amended by the Pension Board. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the Plan. The investment policy was last amended in February 2014. The following table summarizes the Board's adopted allocation policy and the long-term expected real rates of return for each major asset class: Long-Term Target Actual Expected Real Asset Class Allocation Allocation Rate of Return* Domestic equities 45% 56.15% 7.5% International equities 15% 17.00% 8.5% Global broad market fixed income 15% 13.59% 2.5% International fixed income 5% 6.33% 3.5% Global Tactical Asset Allocation 10% 0.00% 3.5% Real estate 10% 5.78% 4.5% Cash and cash equivalents minimal 1.15% not available *annual arithmetic return 100% 100% NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 64 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions - Firefighters' Pension Trust Fund, continued The long-term expected rate of return on Plan assets was determined using a building-block method in which best-estimate ranges of expected future real rates of return(expected returns,net of Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Discount Rate. The discount rate used to measure the total pension liability was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that plan participant contributions will be made at the current contribution rate and that District contributions will be made at rates equal to the difference between actuarially determined contribution rates and the participant rate. Based on those assumptions,the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan participants. Therefore,the long-term expected rate of return on Plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Rate of Return Sensitivity. The sensitivity of the net pension liability to changes in the discount rate was measured as follows. The net pension liability of the District was calculated using the discount rate of 7.0 percent. It was also calculated using a discount rate that was 1-percentage-point lower(6.0 percent) and 1-percentage-point higher(8.0 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase 6.0% 7.0% 8.0% Net pension liability(asset) $ 17,536,811 $ (2,220,733) $ (18,239,020) Deferred Inflows/Outflows of Resources Related to Pensions On September 30, 2021, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 65 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Deferred Outflows Deferred Inflows of Resources of Resources _ Differences between expected and actual experience $ 3,794,273 $ 3,378,425 Change of assumptions 2,729,650 929,520 Net difference between projected and actual earnings on plan investments - 777,761 Contributions subsequent to the measurement date 5,370,441 - $ 11,894,364 $ 5,085,706 For the year ended September 30, 2021,the District recognized pension expense of $4,563,061 related to this Plan. The deferred outflows of resources related to the pension,resulting from District contributions subsequent to the measurement date,will be recognized as a reduction on the net pension liability in the fiscal year ended September 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the pension will be recognized in pension expense as follows: Years Ending September 30 Amount 2022 $ (358,893) 2023 324,575 2024 531,679 2025 360,413 2026 395,495 Thereafter 184,948 Total $ 1,438,217 Memberships of the Plan consisted of the following at October 1, 2020: Firefighters'Pension Trust Fund-Plan 2 Active plan members 168 Inactive plan members or beneficiaries currently receiving benefits 25 Inactive plan members entitled to but not yet receiving benefits 13 Total 206 Number of participating employers 1 Number of participating state agencies 1 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 66 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued The following is a schedule of changes in net pension liability for the fiscal year ended September 30,2021: Increase(Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) Balances at September 30,2020 $ 110,312,027 $ 102,099,091 $ 8,212,936 Changes for the fiscal year: Service cost 5,665,633 - 5,665,633 Interest 8,303,136 - 8,303,136 Differences between expected and actual experience (213,161) - (213,161) Changes of assumptions 3,495,537 - 3,495,537 Changes in benefit terms - - - Adjustment* - Contributions-Employer - 3,334,200 (3,334,200) Contributions-State - 1,891,478 (1,891,478) Contributions-Employee - 1,342,041 (1,342,041) Contributions-Buy Back 26,420 26,420 Net investment income - 21,221,034 (21,221,034) Benefit payments,including refunds of employee contributions (1,312,643) (1,312,643) - Administrative expense - (103,939) 103,939 Net changes 15,964,922 26,398,591 (10,433,669) Balances at September 30,2021 $ 126,276,949 $ 128,497,682 $ (2,220,733) Annual Pension Cost, Net Pension Obligation and Reserves Current year annual pension costs for the Firefighters' Pension Trust Fund are shown in the trend information provided. The Firefighters' Pension Trust Fund had a net unfunded actuarial accrued liability(asset) at October 1, 2021 of($719,422). The Plan assets are legally reserved for the payment of the respective plan member benefits within the Plan. There are no assets legally restricted for plan benefits other than these assets within the Plan. The Firefighters' Pension Trust Fund held certain investments at year end. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 67 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2 -Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Trend Information Firefighters'Pension Trust Fund Total(1) Required Contributions Net Annual District State State Pension Fiscal Pension Required(2) Required Frozen Actual Percentage Obligation Year Contribution Contribution Contribution Contribution Contribution Contributed (NPO) 2021 $ 5,225,679 $ 3,606,617 $ 1,891,478 $ 1,746,716 $ 5,225,679 100% - 2020 $ 4,112,124 $ 2,306,381 $ 1,805,743 $ 1,746,716 $ 4,112,124 100% - 2019 $ 4,643,465 $ 2,769,139 $ 1,874,326 $ 1,746,716 $ 5,180,761 112% - 2018 $ 4,732,018 $ 2,990,030 $ 1,741,988 $ 1,746,716 $ 4,732,018 100% - 2017 $ 4,302,560 $ 2,933,393 $ 1,369,167 $ 1,746,716 $ 4,302,560 100% - 2016 $ 3,146,984 $ 1,735,437 $ 1,411,547 $ 1,746,716 $ 3,146,984 100% - 2015 $ 2,594,733 $ 1,107,133 $ 1,487,600 $ 1,746,716 $ 2,594,733 100% - 2014 $ 2,896,024 $ 1,518,926 $ 1,377,098 $ 1,746,716 $ 2,896,024 100% - 2013 $ 3,386,733 $ 2,127,828 $ 1,314,064 $ 1,746,716 $ 3,441,892 102% - 2012 $ 3,283,811 $ 2,166,246 $ 1,214,214 $ 1,746,716 $ 3,380,454 103% - 2011 $ 3,473,598 $ 2,333,799 $ 1,139,799 $ 1,746,716 $ 3,626,125 104% - 2010 $ 3,190,997 $ 2,170,443 $ 1,020,554 $ 1,746,716 $ 3,200,901 100% - 2009 $ 2,796,158 $ 1,756,228 $ 1,039,931 $ 1,746,716 $ 3,079,738 110% - 2008 $ 2,211,933 $ 1,009,715 $ 1,485,798 $ 1,485,798 $ 2,495,513 113% - (1) The District considers its annual pension cost to be its actuarially determined required annual pension contribution including the employer and state contribution. Fy 2018 required contribution reduced by$0 excess State money reserve. (2) For 2021 the District contributions include application of$0 of prepaid contributions. Pension Trust Required Supplementary Information Schedule of Funding Progress Firefighters'Pension Trust Fund: Unfunded Actuarial Actuarial Actuarial UAAL as Value of Accrued Accrued Annual a%of Actuarial Assets** Liability(AAL) Liability Funded Covered Covered Valuation (AVA) -Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c) (b-a)/c 10/01/21 $ 128,642,432 $ 127,923,010 $ (719,422) 100.6% $ 15,825,800 -4.5% 10/01/20 $ 102,099,091 $ 111,187,786 $ 9,088,695 91.8% $ 14,829,151 61.3% 10/01/19 $ 88,893,030 $ 98,664,952 $ 9,771,922 90.1% $ 14,434,146 67.7% 10/01/18 $ 80,928,687 $ 84,102,348 $ 3,173,661 96.2% $ 13,739,853 23.1% 10/01/17 $ 70,747,813 $ 73,738,012 $ 2,990,199 95.9% $ 13,771,976 21.7% 10/01/16 $ 58,512,948 $ 61,707,055 $ 3,194,107 94.8% $ 11,890,295 26.9% 10/01/15 $ 51,534,195 $ 51,541,750 $ 7,555 100.0% $ 9,671,942 0.1% 10/01/14 $ 49,189,571 $ 47,467,581 $ (1,721,990) 103.6% $ 8,770,495 -19.6% 10/01/13 $ 42,143,137 $ 41,366,768 $ (776,369) 101.9% $ 9,092,235 -8.5% 10/01/12 $ 33,983,491 $ 33,924,855 $ (58,636) 100.2% $ 8,254,150 -0.7% 10/01/11 $ 26,196,164 $ 26,153,965 $ (42,199) 100.2% $ 8,291,830 -0.5% 10/01/10 $ 22,990,534 $ 23,284,830 $ 294,296 98.7% $ 7,737,940 3.8% 10/01/09 $ 17,833,111 $ 18,108,267 $ 275,156 98.5% $ 7,522,834 3.7% 10/01/08 $ 16,719,426 $ 16,890,153 $ 170,727 99.0% $ 7,082,194 2.4% ** reflected by actuary as Plan Fiduciary Net Position NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 68 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 2-Plan Description and Provisions -Firefighters' Pension Trust Fund, continued Firefighters' Pension Trust Fund Valuation date 10/01/20 Actuarial cost method Entry Age Normal Amortization method Level dollar, closed Mortality table MP-2018 Combined Healthy Remaining amortization period 27 years (as of 10/1/17) Actuarial asset valuation method 5 Year Smoothed Market Actuarial assumptions: Investment rate 7.0% (net of fees) Projected salary increase Graduated based on Service (9%per year for first 10 years & (3%per year for 10 or more years) Inflation 2.5% Post retirement cost of living adjustment 3% Measurement date September 30, 2021 Changes of Assumptions Member contribution rate changed effective January 1, 2019 from 3% to 8.48%. District still pays .5% of member contribution. Benefit changes effective January 1, 2019: Increased benefit multiplier to 3.53% for all years of service. Effective July 1, 2019, the Plan must consider a firefighter permanently and totally disabled if diagnosed with cancer per Laws of Florida, Chapter 2019-21. For the year ended September 30, 2021,the following changes to assumptions occurred: 1) investment rate changed from 7.2%to 7.0%. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 69 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE G- RETIREMENT PLANS, CONTINUED Plan 3-Plan Description and Provisions -401(a) The Board of Fire Commissioners established the 401(a) Plan for the general employees and elected officials who are ineligible to participate in the Florida Retirement System. The Plan was effective on January 1, 2013. At September 30, 2021, the Plan had two (2) active participants. The Plan allows for employer contributions. Amounts contributed by the employer correspond to the percentage of contributions by class, established for participants of the Florida Retirement System. Employee contributions are prohibited. Employer contributions are 100%vested after completion of one year of service. A year of service is based on an employee completing at least 1,000 hours of service during a plan year. Total District contributions to the Plan for the years ended September 30, 2021, 2020 and 2019 were $2,556, $7,956 and $1,098,respectively. NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB) The District formally established two (2) OPEB Plans to provide its retirees the opportunity to obtain insurance (medical, dental and life) benefits. All retired full-time employees are eligible for OPEB benefits if actively employed by the District immediately before retirement. As such, active employees with at least twenty five (25) years of service as of September 30, 2010 were allowed to elect to remain in the Defined Benefit Plan or to enter the Post Employment Health Plan(PEHP), a defined contribution Plan. The defined benefit Plan provides a$5,000 life insurance benefit fully paid by the District. All retirees and Early Retirement Incentive Program (ERIP)participants,who were eligible, remained in the Defined Benefit Plan. All other active employees at that time, September 30, 2010, as well as future employees entered the PEHP. Retirees under the PEHP Plan are responsible for the full cost of coverage. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 70 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED The benefits are provided both with and without contractual or labor agreements. The benefits may require contribution from the retirees, depending on certain specified criteria and, in particular, length of creditable employment. The District finances the benefits on a pay-as-you-go basis and recognizes expenditures at the time the premiums are due for both Plans. Effective January 1, 2015, all active employees of the merged District are covered with the same post retirement health benefits. Effective May 1, 2017 the District offered a post-employment health insurance supplementation for eligible retirees who have completed fifteen(15)years of service including three (3) years as a Chief Officer. Under this plan, the District shall contribute 100%toward the cost of the retiree's participation in the District's health insurance program for the retiree and qualifying spouse/dependent until the employee reaches the age of 65 or is eligible for Medicare, whichever occurs first. This benefit is provided in lieu of contributions to the PEHP. Defined Benefit Plan Specifically,the Defined Benefit Plan provides that the District will pay a portion of medical and dental premiums for retirees depending on their years of credited service starting with the completion of fifteen(15)years of credited service. As such,the District pays 50% of the employee's premium and 25% of the spouse's premium at completion of 15 years of service progressing to 100%of the employee's premium and 100% of the spouse's premium upon completion of 25 years of service for certain employees based on final rank at date of retirement. The retiree can buy dependent coverage as part of the Plan. The District also pays the premium associated with a$5,000 life insurance benefit. During fiscal years 2009 and 2010, the District offered two (2) separate Early Retirement Incentive Programs (ERIP)to a number of active employees. A portion of the programs includes full payment of premiums associated with medical, dental, vision and life insurance coverage, including dependent coverage for a period of 3 years. After the 3 year period ends,the ERIP participants receive the Defined Benefit Plan benefits they had been eligible for at termination. During the year ended September 30, 2014, the District paid the final amounts due on the ERIP Plans. Note that the projected premiums for the dental and life benefits were assumed to cover the entire cost of the program. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 71 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Post Employment Health Plan (PEHP) The PEHP is a defined contribution plan administered by the District. All employees who did not elect to remain in the Defined Benefit Plan, and all future active employees are participants in the PEHP. Originally participants in the PEHP had$7,000 deposited on their behalf into an account on the 20th anniversary of their date of hire and on each subsequent anniversary. Additionally, those participants having over 20 years of credited service at their date of retirement also received a$30,000 deposit on their behalf at date of separation. Effective October 1, 2012, the Plan was changed to limit District total contributions to $50,000 per employee. Effective October 1, 2015,participants in the PEHP will have funds ($1,500 for collective bargaining members and $2,500 for non-bargaining members) deposited into a trust account following the 5th anniversary of their date of hire and on each subsequent year. Additionally, those participants having over 20 years of credited service at their date of retirement will receive a maximum contribution ranging from $37,000 to $50,000 depending on length of service. The PEHP is designed to offer similar benefits to those offered under the Defined Benefit Plan. The District, as part of the PEHP, entered a group variable annuity contract. As such, the PEHP Plan's asset custodian and third party administrator is the insurance company through which the annuity is contracted. General -Funding Policy The District paid$271,583 for retiree's and ERIP participants' health care premiums as part of the Defined Benefit Plan on a pay-as-you-go basis for the year ended September 30, 2021. The District also contributed $380,500 to the PEHP Plan for the year ended September 30, 2021. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 72 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Post Employment Health Plan (PEHP), continued General - Funding Policy, Continued No separate trust has been established for either Plan. No separate financial statement is issued for either OPEB Plan. All required disclosures are presented herein. The District obtained an actuarial valuation for its defined benefit OPEB Plan to measure the current year's subsidies and project these subsidies into the future, making an allocation of that cost to different years. The following schedule of funding progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Plan Description-Defined Benefit The year ended September 30, 2018 was the District's transition year and now adheres to 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, 2021, there were forty(40)retirees eligible to receive benefits. At September 30, 2021 there were two hundred sixty six (266) active District employees. The benefits are provided both with contractual or labor agreements. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by the employer and plan members) and include types of benefits provided at the time of each valuation and the historical pattern of sharing 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. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 73 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Actuarial Methods and Assumptions, continued At September 30, 2021, the District's Net OPEB Liability of$10,730,786 was measured as of September 30, 2020, and was determined by an actuarial valuation as of September 30, 2020 using the alternate measurement method. OPEB expense for the year ended September 30, 2021 was $833,121. 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 MP2018 Mortality Tables for Males and Females projected 10 years. Annual healthcare cost trend using the Society of Actuaries Long-Run Medical Cost Trend Model baseline assumptions with an initial rate of 8.00%per year trending to 4.00%by 2073. Turnover-Non-group-specific age-based turnover data from GASB Statement 45 were used as the basis for assigning active members a probability of remaining employed until the assumed retirement age and for developing an expected future working lifetime assumption for purposes of allocating to periods the present value of total benefits paid. Amortization Period: Rolling 20 year amortization Amortization Method: level percentage of payroll The discount rate was 2.14(for 2021)3.58%(for 2020)(4.18%for 2019)(3.64%for 2018)and was based on the 20 Year Municipal Bond Rate with AA/Aa2 or higher. Measurement Date September 30,2020 Valuation Date September 30,2020 Entry age normal cost method was used. Inflation Rate 2.50% Salary Increases 6.00% Discount Rate 2.14% Initial Trend Rate 7.00% Ultimate Trend Rate 4.00% Years to Ultimate 56 The FRS salary scale was used Participation percentage:50% The actuarial assumptions used in the valuation reported for September 30,2020 were based on results of an actuarial experience study performed for the FRS Retirement Plan for July 1,2018. 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. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 74 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability Amount Balance at September 30,2020 $ 9,980,141 Changes for the Year: Service Cost 663,293 Interest Cost on Total OPEB Liability 372,430 Change in Benefit Terms - Difference Between Expected and Actual Experience 165,655 Changes in Assumptions 34,233 Benefit Payments (484,966) Net Changes 750,645 Balance at September 30,2021 $ 10,730,786 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. 1%Decrease Current Rate 1%Increase 1.14% 2.14% 3.14% Net OPEB Liability $ 12,096,120 $ 10,730,786 $ 9,588,329 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 3.00-6.50% 4.00-7.50% 5.00-8.50% Net OPEB Liability $ 9,401,208 $ 10,730,786 $ 12,342,791 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 75 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE H- POST-EMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS (OPEB), CONTINUED Changes in the Net OPEB Liability, continued For the year ended September 30, 2021, the District recognized OPEB expense credit of$833,121. At September 30, 2021, 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 $ 425,774 $ - Changes in Assumptions 490,542 1,885,947 Employer contribution subsequent to measurement date 485,236 - Total $ 1,401,552 $ 1,885,947 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 2022 $ (205,802) 2023 (205,802) 2024 (205,802) 2025 (205,799) 2026 (128,286) Thereafter (18,140) Total $ (969,631) Changes in Assumptions: • Decreased discount rate from 3.58%to 2.14% • Healthcare costs and premiums, healthcare cost trends and salary increases, retirement, termination and disability rates NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 76 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE I- RISK MANAGEMENT During the year ended September 30, 2021, the District provided health benefits as follows: The District continued the use of a high deductible health plan offered to employees and retirees of the District. The District does not offer vision coverage to the employees of the District. The District offers a HSA plan for its employees or FSA plan for employees older than 65. The District contributes $5,000 for those eligible participants who have met the family deductible and $3,000 for those eligible participants who have to meet the individual deductible to the HSA plan annually. Participants may also elect to contribute to the respective plan on a pre-tax basis. HSA amounts that are not utilized by the year end are carried over and are the property of the participant per IRS regulation. The District's HSA contributions for the year ended September 30, 2021 were $1,169,956. The District incurred $6,131,407 in health related claims, third party administration costs, disability,premiums and reinsurance premiums including HSA contributions (noted above) and workers compensation insurance during the year ended September 30, 2021, for the self-insurance and fully-funded insurance programs. It is the policy of the District to purchase third party commercial insurance for other remaining forms of potential risks to which it is exposed. The District's risk management activities are reported in the General Fund. No accrual has been recorded for claims and incidents not reported to the insurer. The District paid $502,752 for building, auto and other liability insurances for the year ended September 30, 2021. The District had no significant reductions in insurance coverage from the prior year. Reported claims have not exceeded the insurance coverage for the years ended September 30, 2011 through September 30, 2021. NOTE J- PROPERTY TAXES Property taxes are levied after formal adoption of the District's budget and become due and payable on November 1 of each year and are delinquent on April 1 of the following year. Discounts on property taxes are allowed for payments made prior to the April 1 delinquent date. Tax certificates are sold to the public for the full amount NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 77 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE J- PROPERTY TAXES, CONTINUED of any unpaid taxes and must be sold not later than June 1 of each year. The billing, collection, and related record keeping of all property taxes is performed for the District by the Collier County Tax Collector. No accrual for the property tax levy becoming due in November 2021 is included in the accompanying basic financial statements, since such taxes are collected to finance expenditures of the subsequent period. Procedures for collecting delinquent taxes, including applicable tax certificate sales and tax deed sales, are provided for by Florida Statutes. The enforceable lien date is approximately two years after taxes become delinquent and occurs only upon request of a holder of a delinquent tax certificate. As of September 30, 2021, $286,886 was recorded in the General Fund and was due from the Collier County Tax Collector to the District for ad valorem taxes and excess fees, and interest. Important dates in the property tax cycle are as follows: Assessment roll certified July 1 Millage resolution approved No later than 93 days following certification of assessment roll. Taxes due and payable(Levy date) November/with various discount provisions through March 31. Property taxes payable-maximum discount(4 percent) 30 days after levy date Beginning of fiscal year for which taxes have been levied October 1 Due date March 31 Taxes become delinquent(lien date) April 1 Tax certificates sold by the Collier County Tax Collector Prior to June 1 For the year ended September 30, 2021,the Board of Commissioners of the District levied ad valorem taxes at a millage rate of$1.00 per$1,000 (1.0 mills) of the 2020 net taxable value of real property located within the North Naples Service Delivery Area. For the year ended September 30, 2021,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 2020 net taxable value of real property located within the Big Corkscrew Island Service Delivery Area. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 78 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE K- IMPACT FEE FUND ACTIVITY During the year ended September 30, 2021, the Impact Fee Fund had the following activity: Amount Unearned revenue,October 1,2020 $ 1,608,974 Impact fee receipts 820,350 Impact fee refund(sale of property-Yarberry) 2,889,872 Due from other Governments 123,936 Due from the General Fund 16,733 Interest and other income 3,882 Operating expenses (14,163) Principal reduction (57,500) Loan interest (1,948) Capital outlay - Transfers in(out) - Unearned revenue,September 30,2021 $ 5,390,136 On March 24, 2021, the District approved the sale of the Yarberry Lane property as surplus land for$3,505,000. Since this property was originally purchased with impact fees, the original purchase price of$2,889,872 was reinstated(refunded) to the Impact Fee Fund upon the sale's closing. NOTE L - FUND BALANCE/NET POSITION ALLOCATIONS Fund Balance/Net Position were allocated for the following purposes at September 30,2021: NN BCI Total Nonspendable-General Fund Amount Amount Amount Nonspendable fund balance-General Fund prepaid expenses $ 19,347 $ - $ 19,347 NN BCI Total Assigned fund balance-General Fund Amount Amount Amount General Fund-Expenses-Oct-Dec $ 9,082,622 $ 1,367,860 $ 10,450,482 General Fund-Emergency reserve 5,578,977 3,083,258 8,662,235 General Fund-Health insurance claim reserve 398,357 59,314 457,671 General Fund-Roof replacement 683,264 101,736 785,000 General Fund-Fire apparatus 217,600 32,400 250,000 Total General Fund S 15,960,820 S 4,644,568 $20,605,388 NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 79 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE L- FUND BALANCE/NET POSITION ALLOCATIONS, CONTINUED NN BCI Total Unassigned-General Fund Amount Amount Amount General Fund $ - $ - $ Total Restricted Fund Balance/Net Position-Inspection Fee Fund Amount Inspection Fee Fund $ 779,631 NOTE M-LEASED VEHICLES On October 13, 2016,the District leased thirty one (31) vehicles under a sixty(60) month operating lease agreement beginning March 2017. The terms and payment varies for each vehicle. The minimum annual lease payments are as follows: Year Ending September 30 Amount 2022 $ 127,918 2023 86,445 2024 86,445 2025 86,445 2026 46,142 $ 433,395 Lease expense for the year ended September 30, 2021 was $122,555. NOTE N- COMMITMENTS AND CONTINGENCIES The District is involved from time to time in certain routine litigation, the substance of which either as liabilities or recoveries, would not materially affect the financial position of the District. Although the final outcome of the lawsuits, assertions, and claims or the exact amount of costs and/or potential recovery is not presently determinable, in the opinion of the District's legal counsel,the resolution of these matters will not have a materially adverse affect on the financial condition of the District. As a general policy, the District plans to vigorously contest any such matters. NOTE 0 - DEFICIT UNRESTRICTED NET POSITION (NET ASSETS) During the year ended September 30,2021, the District's unrestricted net position (net assets)balance was a balance of$4,510,934, due substantially to recording the reduced current year actuarially determined net pension liability of$3,236,921. The NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 80 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30,2021 NOTE O- DEFICIT UNRESTRICTED NET POSITION (NET ASSETS), CONTINUED District's total available fund balance at September 30, 2021 remains approximately equal to five (5) months of actual expenditures. However, the Board assigned available fund balance of$20,605,388 to fund operations for the first quarter of the subsequent fiscal year. During the year ended September 30, 2020, the District's unrestricted net position (net assets) balance was a deficit of$(6,627,736), due substantially to recording the current year actuarially determined net pension liability of$19,352,783. The District's total available fund balance at September 30, 2020 remains approximately equal to four(4)months of actual expenditures. However, the Board assigned available fund balance of$18,673,395 to fund operations for the first quarter of the subsequent fiscal year. NOTE P- 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. Certain governmental activity was cancelled and/or severely limited. 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 2021-22. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 81 of 111 NOTES TO THE FINANCIAL STATEMENTS September 30, 2021 NOTE Q - SUBSEQUENT EVENT On May 12, 2022,the District received an insurance award determination for roof repairs at Fire Stations 12,44,45 and 46 due to damage caused by Hurricane Irma on September 10, 2017. The total award(replacement cost) was $1,587,911. The net amount to be paid to the District(net of award depreciation,prior insurance payments and professional fees) is $911,157. COMBINING FINANCIAL STATEMENTS BY SERVICE DELIVERY AREA NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 82 of 111 COMBINING BALANCE SHEET -GENERAL FUND-BY SERVICE DELIVERY AREA September 30, 2021 North Naples Big Corkscrew Total Service Island Service General Delivery Area Delivery Area Eliminations Fund ASSETS Cash and cash equivalents $ 9,904,606 $ 3,042,814 $ - $ 12,947,420 Restricted cash and cash equivalents - - - - Investments 7,457,701 2,008,402 - 9,466,103 Due from other governments 684,282 51,898 - 736,180 Due from other funds 458,586 - (458,546) 40 Other receivables,net 71,317 - - 71,317 Prepaid expenses 19,347 - - 19,347 TOTAL ASSETS $ 18,595,839 $ 5,103,114 $ (458,546) $ 23,240,407 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable and accrued expenses $ 2,574,882 $ - $ - $ 2,574,882 Retainage payable - - -Due to other funds 16,733 458,546 (458,546) 16,733 Contract deposits 7,500 - - 7,500 Uneamed revenue 16,557 - - 16,557 TOTAL LIABILITIES 2,615,672 458,546 (458,546) 2,615,672 FUND BALANCE Nonspendable 19,347 - - 19,347 Restricted - - - - Assigned 15,960,820 4,644,568 - 20,605,388 Unassigned - - - - TOTAL FUND BALANCE 15,980,167 4,644,568 - 20,624,735 TOTAL LIABILITIES AND FUND BALANCE $ 18,595,839 $ 5,103,114 $ (458,546) $ 23,240,407 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 83 of 111 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -GENERAL FUND - BY SERVICE DELIVERY AREA Year Ended September 30,2021 General Fund North Naples Big Corkscrew Total Service Island Service General Delivery Area Delivery Area Fund REVENUES Ad Valorem taxes $ 35,149,802 $ 7,606,105 $ 42,755,907 Intergovernmental revenue: State firefighter supplement 56,643 - 56,643 Federal grants 595,438 - 595,438 Other Intergovernmental 18,800 - 18,800 Charges for services 755,435 - 755,435 Miscellaneous: Interest 44,632 15,762 60,394 Other 211,222 22,174 233,396 TOTAL REVENUES 36,831,972 7,644,041 44,476,013 EXPENDITURES Current Public safety Personnel services 29,675,123 4,418,538 34,093,661 Operating expenditures 6,099,920 972,120 7,072,040 Capital outlay 2,759,756 410,921 3,170,677 Debt service: Principal reduction 598,398 89,100 687,498 Interest and fiscal charges 86,409 12,866 99,275 Reserves - - - TOTAL EXPENDITURES 39,219,606 5,903,545 45,123,151 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (2,387,634) 1,740,496 (647,138) OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 1,106,574 - 1,106,574 Proceeds from disposition of capital assets 327,820 - 327,820 Transfer in - - - Transfer out - - - TOTAL OTHER FINANCING SOURCES AND(USES) 1,434,394 - 1,434,394 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES (953,240) 1,740,496 787,256 FUND BALANCE-Beginning 16,933,407 2,904,072 19,837,479 FUND BALANCE-Ending $ 15,980,167 $ 4,644,568 $ 20,624,735 The accompanying notes are an integral part of this statement. REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 84 of 111 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND- SUMMARY STATEMENT-NN Year Ended September 30,2021 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 34,187,222 $ 34,187,222 $ 35,149,802 $ 962,580 Intergovernmental revenue: State firefighter supplement 62,669 62,669 56,643 (6,026) Federal grants 212,741 212,741 595,438 382,697 Other Intergovernmental 24,000 24,000 18,800 (5,200) Charges for services 454,696 464,096 755,435 291,339 Miscellaneous: Interest 258,000 258,000 44,632 (213,368) Other 190,915 190,915 211,222 20,307 Subtotal-revenues 35,390,243 35,399,643 36,831,972 1,432,329 Cash brought forward 16,210,141 16,933,407 - (16,933,407) TOTAL REVENUES 51,600,384 52,333,050 36,831,972 (15,501,078) EXPENDITURES Current Public safety Personnel services 29,984,513 30,225,614 29,675,123 550,491 Operating expenditures 6,220,636 6,491,180 6,099,920 391,260 Capital outlay 2,292,196 2,761,492 2,759,756 1,736 Debt service: Principal reduction 459,687 598,398 598,398 - Interest and fiscal charges 73,560 86,409 86,409 - Reserves 13,538,176 13,379,442 - 13,379,442 TOTAL EXPENDITURES 52,568,768 53,542,535 39,219,606 14,322,929 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (968,384) (1,209,485) (2,387,634) (1,178,149) OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 963,162 963,162 1,106,574 143,412 Proceeds from disposition of capital assets 5,222 246,323 327,820 81,497 Transfer in - - - - Transfer out - - - TOTAL OTHER FINANCING SOURCES AND(USES) 968,384 1,209,485 1,434,394 224,909 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - (953,240) $ (953,240) FUND BALANCE-Beginning 16,933,407 FUND BALANCE-Ending $ 15,980,167 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 85 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND -DETAILED STATEMENT-NN Year Ended September 30, 2021 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 34,187,222 $ 34,187,222 $ 35,149,802 $ 962,580 Intergovernmental revenue: State firefighter supplement 62,669 62,669 56,643 (6,026) Federal grants 212,741 212,741 595,438 382,697 Other Intergovernmental 24,000 24,000 18,800 (5,200) Charges for services 454,696 464,096 755,435 291,339 Miscellaneous: Interest 258,000 258,000 44,632 (213,368) Other 190,915 190,915 211,222 20,307 Subtotal-revenues 35,390,243 35,399,643 36,831,972 1,432,329 Cash brought forward 16,210,141 16,933,407 - (16,933,407) TOTAL REVENUES 51,600,384 52,333,050 36,831,972 (15,501,078) EXPENDITURES Current Public safety Personnel services: Salaries Firefighters&Admin. 16,947,744 16,947,744 16,390,728 557,016 Commissioners 26,112 26,112 26,112 - Overtime 704,728 704,728 1,010,129 (305,401) Vacation pay 156,672 156,672 122,120 34,552 Sick leave 719,071 719,071 701,610 17,461 Professional/Incentives and holiday pay 750,399 750,399 818,442 (68,043) Payroll taxes Social Security 1,457,218 1,457,218 1,420,735 36,483 Benefits Retirement 3,476,550 3,476,550 3,545,144 (68,594) Health insurance(including HSA) 4,733,710 4,733,710 4,323,887 409,823 Disability insurance 89,275 89,275 68,108 21,167 Unemployment - - 3,718 (3,718) Workers compensation 695,670 695,670 692,716 2,954 Medical clinic/employee physicals 213,438 213,438 213,616 (178) Post employment health plan(PEHP) 8,704 249,805 331,187 (81,382) Retirement recognition 5,222 5,222 6,871 (1,649) Subtotal-Personnel services 29,984,513 30,225,614 29,675,123 550,491 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 86 of 111 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND -DETAILED STATEMENT-NN (CONTINUED) Year Ended September 30, 2021 General Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Insurance 441,992 441,992 437,595 4,397 Uniforms 132,105 132,105 125,231 6,874 Communications 33,615 166,293 158,472 7,821 Telephone 355,558 355,558 328,600 26,958 Utilities 229,786 229,786 231,429 (1,643) Maintenance Vehicle 439,204 439,204 424,987 14,217 Equipment 70,555 70,555 9,664 60,891 Computer 608,170 733,508 817,083 (83,575) Hydrant 65,280 65,280 64,385 895 Building 457,455 457,455 498,450 (40,995) Supplies Office 52,224 52,224 51,732 492 Protective gear 391,010 391,010 363,521 27,489 Station 62,669 62,669 61,289 1,380 Emergency medical 156,454 156,454 221,042 (64,588) Enterprise Lease/Rental 135,956 135,956 122,555 13,401 Equipment Office 26,982 26,982 47,538 (20,556) Fire 258,302 258,302 193,233 65,069 Shop 27,679 27,679 42,599 (14,920) Warehouse/logistics 4,352 4,352 4,357 (5) Professional and other fees Legal and professional 577,075 577,075 325,286 251,789 Property appraiser fees 263,529 263,529 260,004 3,525 Tax collector fees 689,744 689,744 700,188 (10,444) Accounting 56,576 56,576 50,744 5,832 Miscellaneous Travel 77,683 77,683 24,342 53,341 Public information officer 23,675 23,675 18,837 4,838 Fuel and oil 245,888 245,888 210,653 35,235 Legal advertisements 8,356 8,356 12,295 (3,939) Dues and subscriptions 9,731 9,731 11,612 (1,881) CERT team 8,704 8,704 6,039 2,665 Dive team 10,817 10,817 10,484 333 Fire prevention 18,583 18,583 22,720 (4,137) Training 178,819 178,819 118,580 60,239 Hazardous materials 17,643 17,643 31,321 (13,678) Technical rescue 63,662 76,190 67,428 8,762 Boat team 12,186 12,186 3,963 8,223 K-9 search and rescue - - - - Honor guard - - - - OPS - - - - Peer fitness - - - - Bad Debt Expense - - - - Miscellaneous 8,617 8,617 21,662 (13,045) Operational Reserves Contingency - - - - Subtotal-Operating expenditures 6,220,636 6,491,180 6,099,920 391,260 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 87 of 111 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND-DETAILED STATEMENT-NN (CONTINUED) Year Ended September 30, 2021 General Fund Variance Original Final Favorable Capital outlay: Budget Budget Actual (Unfavorable) Land - - - - Station improvements 279,564 279,564 209,432 70,132 Fire&rescue equipment 138,394 138,394 107,440 30,954 Protective gear - - - - Medical equipment 1,199,823 1,199,823 1,157,624 42,199 Station equipment - - - - Communication equipment 132,678 - - - Office equipment - - - - Computers 199,322 73,984 31,361 42,623 TRT 11,315 11,315 9,144 2,171 Vehicle purchase 30,464 17,936 1,152,196 (1,134,260) Shop equipment 11,315 11,315 13,021 (1,706) Hazardous materials equipment 6,441 6,441 7,295 (854) DRT-HazMat Equipment - - 72,243 (72,243) Fire apparatus 282,880 1,022,720 - 1,022,720 Dive equipment - - - - Subtotal-Capital outlay 2,292,196 2,761,492 2,759,756 1,736 Debt service: Principal reduction 459,687 598,398 598,398 - Interest and fiscal charges 73,560 86,409 86,409 - Subtotal-Debt service 533,247 684,807 684,807 - Reserves: Reserves 13,538,176 13,379,442 - 13,379,442 TOTAL EXPENDITURES 52,568,768 53,542,535 39,219,606 14,322,929 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (968,384) (1,209,485) (2,387,634) (1,178,149) OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 963,162 963,162 1,106,574 143,412 Proceeds from disposition of capital assets 5,222 246,323 327,820 81,497 Transfers in - - - - Transfers out - - _ - TOTAL OTHER FINANCING SOURCES AND(USES) 968,384 1,209,485 1,434,394 224,909 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES $ - $ - (953,240) $ (953,240) FUND BALANCE-Beginning 16,933,407 FUND BALANCE-Ending $ 15,980,167 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 88 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND - SUMMARY STATEMENT-BCI Year Ended September 30, 2021 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 7,445,069 $ 7,445,069 $ 7,606,105 $ 161,036 Intergovernmental revenue: State firefighter supplement 9,331 9,331 - (9,331) Federal grants 31,677 31,677 - (31,677) Other intergovernmental - - - - Charges for services 67,704 69,104 - (69,104) Miscellaneous: Interest 51,600 51,600 15,762 (35,838) Other 38,693 38,693 22,174 (16,519) Subtotal-revenues 7,644,074 7,645,474 7,644,041 (1,433) Cash brought forward 2,256,643 2,904,072 - (2,904,072) TOTAL REVENUES 9,900,717 10,549,546 7,644,041 (2,905,505) EXPENDITURES Current Public safety Personnel services 4,464,607 4,500,506 4,418,538 81,968 Operating expenditures 988,170 1,028,452 972,120 56,332 Capital outlay 341,300 411,178 410,921 257 Debt service: Principal reduction 68,446 89,100 89,100 - Interest and fiscal charges 10,953 12,866 12,866 - Reserves 4,171,431 4,687,533 - 4,687,533 TOTAL EXPENDITURES 10,044,907 10,729,635 5,903,545 4,826,090 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (144,190) (180,089) 1,740,496 1,920,585 OTHER FINANCING SOURCES AND USES Proceeds from capital lease 143,412 143,412 - (143,412) Proceeds from disposition of capital assets 778 36,677 - (36,677) Transfer in/(out) - - - - TOTAL OTHER FINANCING SOURCES AND USES 144,190 180,089 - _ (180,089) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - 1,740,496 $ 1,740,496 FUND BALANCE-Beginning 2,904,072 FUND BALANCE-Ending $ 4,644,568 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 89 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND -DETAILED STATEMENT-BCI Year Ended September 30,2021 General Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 7,445,069 $ 7,445,069 $ 7,606,105 $ 161,036 Intergovernmental revenue: State firefighter supplement 9,331 9,331 - (9,331) Federal grants 31,677 31,677 - (31,677) Other intergovernmental - - - - Charges for services 67,704 69,104 - (69,104) Miscellaneous: Interest 51,600 51,600 15,762 (35,838) Other 38,693 38,693 22,174 (16,519) Subtotal-revenues 7,644,074 7,645,474 7,644,041 (1,433) Cash brought forward _ 2,256,643 2,904,072 - (2,904,072) TOTAL REVENUES 9,900,717 10,549,546 7,644,041 (2,905,505) EXPENDITURES Current Public safety Personnel services: Salaries Firefighters&Admin. 2,523,469 2,523,469 2,440,531 82,938 Salaries-harmonization - - - - Commissioners 3,888 3,888 3,888 - Overtime 104,933 104,933 150,405 (45,472) Vacation pay 23,328 23,328 18,183 5,145 Sick leave 107,068 107,068 104,468 2,600 Incentives and holiday pay 111,733 111,733 121,864 (10,131) Payroll taxes Social Security 216,975 216,975 211,543 5,432 Benefits Retirement 517,647 517,647 527,861 (10,214) Health insurance 704,836 704,836 643,814 61,022 Disability insurance 13,293 13,293 10,141 3,152 Benefits harmonization - - - - Unemployment - - 554 (554) Workers compensation 103,583 103,583 103,143 440 Medical clinic/employee physicals 31,780 31,780 31,807 (27) Post employment health plan(PEHP) 1,296 37,195 49,313 (12,118) Retirement recognition 778 778 1,023 (245) Subtotal-Personnel services 4,464,607 4,500,506 4,418,538 81,968 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 90 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND-DETAILED STATEMENT-BCI (CONTINUED) Year Ended September 30, 2021 General Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Insurance 65,811 65,811 65,157 654 Uniforms 19,670 19,670 18,647 1,023 Communications 5,005 24,760 23,596 1,164 Telephone 52,942 52,942 48,928 4,014 Utilities 34,214 34,214 34,459 (245) Maintenance Vehicle 65,396 65,396 63,279 2,117 Equipment 10,505 10,505 1,439 9,066 Computer 90,555 109,217 121,661 (12,444) Hydrant 9,720 9,720 9,587 133 Building 68,113 68,113 74,218 (6,105) Supplies Office 7,776 7,776 7,703 73 Protective gear 58,220 58,220 54,127 4,093 Station 9,331 9,331 9,062 269 Emergency medical 23,296 23,296 33,759 (10,463) Enterprise Lease/Rental 20,244 20,244 18,248 1,996 Equipment Office 4,018 4,018 7,078 (3,060) Fire 38,460 38,460 27,926 10,534 Shop 4,121 4,121 6,407 (2,286) Warehouse/logistics 648 648 649 (1) Professional and other fees Legal and professional 85,925 85,925 48,434 37,491 Property appraiser fees 48,975 48,975 54,582 (5,607) Tax collector fees 154,901 154,901 152,249 2,652 Accounting 8,424 8,424 7,556 868 Miscellaneous Travel 11,567 11,567 3,624 7,943 Public information officer 3,525 3,525 2,805 720 Public education officer - - - - Fuel and oil 36,612 36,612 31,366 5,246 Legal advertisements 1,244 1,244 1,831 (587) Dues and subscriptions 1,449 1,449 1,729 (280) CERT team 1,296 1,296 899 397 Dive team 1,611 1,611 1,561 50 Fire prevention 2,767 2,767 3,383 (616) Training 26,626 26,626 17,656 8,970 Hazardous materials 2,627 2,627 4,664 (2,037) Technical rescue 9,479 11,344 10,040 1,304 Boat team 1,814 1,814 590 1,224 K-9 search and rescue - - - - Miscellaneous 1,283 1,283 3,221 (1,938) Operational Reserves Contingency - - - - Subtotal-Operating expenditures 988,170 1,028,452 972,120 56,332 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 91 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND -DETAILED STATEMENT-BCI (CONTINUED) Year Ended September 30, 2021 General Fund Variance Original Final Favorable Capital outlay: Budget Budget Actual (Unfavorable) Land - - - - Station improvements 41,626 41,626 31,184 10,442 Fire&rescue equipment 20,606 20,606 15,998 4,608 Protective gear - - - - Medical equipment 178,650 178,650 172,367 6,283 Station equipment - - - - Communication equipment 19,755 - - - Computers 29,678 11,016 4,670 6,346 TRT 1,685 1,685 1,362 323 Hazardous material equipment 959 959 1,086 (127) DRT-HazMat Equipment - - 10,757 (10,757) Vehicle purchase 4,536 2,671 2,974 (303) Fire apparatus 42,120 152,280 168,584 (16,304) Shop equipment 1,685 1,685 1,939 (254) Dive equipment - - - - Subtotal-Capital outlay 341,300 411,178 410,921 257 Debt service: Principal reduction 68,446 89,100 89,100 - Interest and fiscal charges 10,953 12,866 12,866 - Subtotal-Debt service 79,399 101,966 101,966 - Reserves: Reserves 4,171,431 4,687,533 - 4,687,533 TOTAL EXPENDITURES 10,044,907 10,729,635 5,903,545 4,826,090 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (144,190) (180,089) 1,740,496 1,920,585 OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 143,412 143,412 - (143,412) Proceeds from disposition of capital assets 778 36,677 - (36,677) Transfer in/(out) - - - - TOTAL OTHER FINANCING SOURCES AND(USES) 144,190 180,089 - (180,089) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER)EXPENDITURES AND OTHER FINANCING USES $ - $ - 1,740,496 $ 1,740,496 FUND BALANCE-Beginning 2,904,072 FUND BALANCE-Ending $ 4,644,568 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 92 of 111 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -COMBINED SERVICE DELIVERY AREAS- BUDGET AND ACTUAL- IMPACT FEE FUND - SUMMARY STATEMENT Year Ended September 30, 2021 Impact Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Fees: Impact fees $ 1,000,000 $ 70,337 $ 69,729 $ (608) Impact Fees-Collected/Deferred - 929,663 - (929,663) Miscellaneous: Interest 15,000 15,000 3,882 (11,118) Transfer from General Fund - - - - Other - - - - Subtotal-revenues 1,015,000 1,015,000 73,611 (941,389) Cash brought forward 755,756 1,608,974 - (1,608,974) TOTAL REVENUES 1,770,756 2,623,974 73,611 (2,550,363) EXPENDITURES Current Public safety Operating expenditures 19,212 19,212 14,163 5,049 Capital outlay - - - - Debt service: Principal 57,500 57,500 57,500 - Interest and fiscal charges 8,625 8,625 1,948 6,677 Reserves 1,685,419 2,538,637 - 2,538,637 TOTAL EXPENDITURES 1,770,756 2,623,974 73,611 2,550,363 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - - - - OTHER FINANCING SOURCES AND(USES) Transfers in(out) - - - - TOTAL OTHER FINANCING SOURCES AND(USES) - - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 93 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -COMBINED SERVICE DELIVERY AREAS- BUDGET AND ACTUAL-IMPACT FEE FUND -DETAILED STATEMENT Year Ended September 30,2021 Impact Fee Fund Variance Original Final Favorable REVENUES Budget Budget Actual (Unfavorable) Fees: Impact fees $ 1,000,000 $ 70,337 $ 69,729 $ (608) Impact Fees-Collected/Deferred - 929,663 - (929,663) Miscellaneous: Interest 15,000 15,000 3,882 (11,118) Transfer from General Fund - - - - Other - - - - Subtotal-revenues 1,015,000 1,015,000 73,611 (941,389) Cash brought forward 755,756 1,608,974 - (1,608,974) TOTAL REVENUES 1,770,756 2,623,974 73,611 (2,550,363) EXPENDITURES Operating expenditures: Impact fee collection 14,212 14,212 14,163 49 Professional fees 5,000 5,000 - 5,000 Subtotal-Operating expenditures 19,212 19,212 14,163 5,049 Capital outlay: Preplanning - - - - Construction in progress - - - - Emergency signal-station#42 - - - - Temporary station lease - - - - Subtotal-Capital outlay - - - - Debt service: Principal 57,500 57,500 57,500 - Interest and fiscal charges 8,625 8,625 1,948 6,677 Subtotal-Debt service 66,125 66,125 59,448 6,677 Reserves: 1,685,419 2,538,637 - 2,538,637 TOTAL EXPENDITURES 1,770,756 2,623,974 73,611 2,550,363 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - - - - OTHER FINANCING SOURCES AND(USES) Transfers in(out) - - - - TOTAL OTHER FINANCING SOURCES AND(USES) - - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 94 of 111 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE DELIVERY AREA- INSPECTION FEE FUND - SUMMARY STATEMENT Year Ended September 30, 2021 Inspection Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Charges for services Inspection fees $ 880,000 $ 1,485,000 $ 1,514,889 $ 29,889 Plan review fees 1,150,000 1,150,000 1,124,203 (25,797) Miscellaneous: Interest 5,000 1,000 1,088 88 Other 1,000 - - - Subtotal-revenues 2,036,000 2,636,000 2,640,180 4,180 Cash brought forward 1,306 164,820 - (164,820) TOTAL REVENUES 2,037,306 2,800,820 2,640,180 (160,640) EXPENDITURES Current Public safety Personnel services 1,844,435 2,044,435 1,913,563 130,872 Operating expenditures 118,000 118,000 111,806 6,194 Capital outlay - - - - Reserves 74,871 638,385 - 638,385 TOTAL EXPENDITURES 2,037,306 2,800,820 2,025,369 775,451 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES $ - $ - 614,811 $ 614,811 FUND BALANCE-Beginning 164,820 FUND BALANCE-Ending $ 779,631 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 95 of 111 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE DELVERY AREA-INSPECTION FEE FUND-DETAILED STATEMENT Year Ended September 30, 2021 Inspection Fee Fund Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUES Charges for services: Inspection fees $ 880,000 $ 1,485,000 $ 1,514,889 $ 29,889 Plan review fees 1,150,000 1,150,000 1,124,203 (25,797) Miscellaneous: Interest 5,000 1,000 1,088 88 Other 1,000 - - - Subtotal-revenues 2,036,000 2,636,000 2,640,180 4,180 Cash brought forward 1,306 164,820 - (164,820) TOTAL REVENUES 2,037,306 2,800,820 2,640,180 (160,640) EXPENDITURES Current Public safety Personnel services: Salaries Regular 1,137,271 1,337,271 1,223,783 113,488 Overtime 45,000 35,000 34,900 100 Sick leave 40,000 50,000 50,523 (523) Vacation pay - - - - Professional/Incentives and holiday pay 3,600 3,600 8,400 (4,800) Payroll taxes Social Security 91,906 101,906 100,797 1,109 Benefits Retirement 144,998 164,998 163,089 1,909 Post employment health plan(PEHP) - - - - Health insurance 313,448 283,448 281,220 2,228 Disability insurance 6,329 6,329 - 6,329 Medical clinic/employee physicals 15,202 15,202 - 15,202 Unemployment compensation - - - - Workers compensation 46,681 46,681 50,851 (4,170) Subtotal-Personnel services 1,844,435 2,044,435 1,913,563 130,872 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 96 of 111 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE DELVERY AREA-INSPECTION FEE FUND-DETAILED STATEMENT (CONTINUED) Year Ended September 30, 2021 Inspection Fee Fund Variance Original Final Favorable Operating expenditures: Budget Budget Actual (Unfavorable) Uniforms $ - $ - $ 1,415 $ (1,415) Telephone - - - - Utilities - - - - Rent 50,000 50,000 50,000 - Maintenance Computer software&supplies 50,000 50,000 39,938 10,062 Hydrant - - - - Supplies Office - - 135 (135) Miscellaneous Dues&subscriptions - - 1,460 (1,460) Fire prevention - - 6,967 (6,967) Training 10,000 10,000 6,312 3,688 Travel 8,000 8,000 5,579 2,421 Subtotal-Operating expenditures 118,000 118,000 111,806 6,194 Capital outlay: Office facility - - - - Vehicles - - - - Subtotal-Capital outlay - - - - Debt service: Principal reduction - Interest and fiscal charges - - - - Subtotal-Debt service - - - - Reserves: 74,871 638,385 - 638,385 TOTAL EXPENDITURES 2,037,306 2,800,820 2,025,369 775,451 EXCESS OF REVENUES OVER(UNDER) EXPENDITURES $ - $ - 614,811 $ 614,811 FUND BALANCE-Beginning 164,820 FUND BALANCE-Ending $ 779,631 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -FLORIDA RETIREMENT SYSTEM(FRS) PENSION PLAN (1) Fiscal year ending September 30: 2021 2020 2019 2018 District's proportion of the net pension liability 0.019684338% 0.021696122% 0.027233351% 0.031414516% District's proportionate share of the net pension liability $ 1,486,928 $ 9,403,419 $ 9,378,787 $ 9,462,215 District's covered-employee payroll $ 5,145,270 $ 4,887,399 $ 5,436,629 $ 5,753,921 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 28.90% 192.40% 172.51% 164.45% Plan fiduciary net position as a percentage of the total pension liability 96.40% 78.85% 82.61% 84.26% 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) 2021 2020 2019 2018 Contractually required contribution $ 845,377 $ 775,095 $ 887,696 $ 912,380 Contributions in relation to the contractually required contribution 845,377 775,095 887,696 912,380 Contribution deficiency(excess) $ - $ - $ - $ - District's covered-employee payroll $ 5,145,270 $ 4,887,399 $ 5,436,629 $ 5,753,921 Contributions as a percentage of covered-employee payroll 16.43% 15.86% 16.33% 15.86% Notes: (I)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. Note: Measurement date was June 30 within the respective fiscal year. Page 97 of 111 2017 2016 2015 2014 0.038802719% 0.040983896% 0.038209683% 0.041592399% $ 11,477,584 $ 10,348,466 $ 4,935,293 $ 2,537,748 $ 6,933,311 $ 6,745,995 $ 6,326,722 $ 6,293,887 165.54% 153.40% 78.01% 40.32% 83.89% 84.88% 92.00% 96.09% 2017 2016 2015 2014 $ 1,119,238 $ 1,099,170 $ 967,270 $ 971,792 1,119,238 1,099,170 967,270 971,792 $ - $ - $ - $ $ 6,933,311 $ 6,745,995 $ 6,326,722 $ 6,293,887 16.14% 16.29% 15.29% 15.44% NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF DISTRICT'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -HEALTH INSURANCE SUBSIDY(HIS)PENSION PLAN (1) Fiscal year ending September 30: 2021 2020 2019 2018 District's proportion of the net pension liability 0.014266437% 0.014221549% 0.016634678% 0.019013168% District's proportionate share of the net pension liability $ 1,749,993 $ 1,736,428 $ 1,861,254 $ 2,012,375 District's covered-employee payroll $ 5,145,270 $ 4,887,399 $ 5,436,629 $ 5,753,921 District's proportionate share of the net pension liability as a percentage of its covered-employee payroll 34.01% 35.53% 34.24% 34.97% Plan fiduciary net position as a percentage of the total pension liability 3.56% 3.00% 2.63% 2.15% Notes: (1)The amounts presented for each fiscal year were determined as of September 30. SCHEDULE OF DISTRICT CONTRIBUTIONS- HEALTH INSURANCE SUBSIDY (HIS) PENSION PLAN (1) 2021 2020 2019 2018 Contractually required contribution $ 53,960 $ 58,340 $ 66,816 $ 68,674 Contributions in relation to the contractually required contribution 53,960 58,340 66,816 68,674 Contribution deficiency(excess) $ - $ - $ - $ - District's covered-employee payroll $ 5,145,270 $ 4,887,399 $ 5,436,629 $ 5,753,921 Contributions as a percentage of covered-employee payroll 1.05% 1.19% 1.23% 1.19% 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. Note: Measurement date was June 30 within the respective fiscal year. Page 98 of 111 2017 2016 2015 2014 0.021233558% 0.021530658% 0.021138780% 0.02 1 145 042% $ 2,270,390 $ 2,509,309 $ 2,155,823 $ 1,977,113 $ 6,933,311 $ 6,745,995 $ 6,326,722 $ 6,293,887 32.75% 37.20% 34.07% 31.41% 1.64% 0.97% 0.50% 0.99% 2017 2016 2015 2014 $ 84,244 $ 87,198 $ 78,787 $ 65,973 84,244 87,198 78,787 65,973 $ - $ - $ - $ - $ 6,933,311 $ 6,745,995 $ 6,326,722 $ 6,293,887 1.22% 1.29% 1.25% 1.05% NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 99 of 111 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-FRS/HIS September 30, 2021 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 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 remained unchanged at 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 2.21% to 2.16% 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, 2021, the inflation rate assumption decreased to 2.40 percent from 2.60, the real payroll growth assumption was increased to .85 percent from .65, and the overall payroll growth rate assumption remained at 3.25 percent. The long-term expected rate of return remained unchanged at 6.80 percent. Health Insurance Subsidy Pension Plan The municipal rate used to determine total pension liability decreased from 2.21 percent to 2.16 percent. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 100 of 111 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION-FRS/HIS September 30, 2021 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, 2021 was reduced from 5.9 to 5.7 years for FRS and was reduced from 7.2 years to 6.4 years for HIS. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT 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 2021 2020 2019 Service Cost $ 663,293 $ 557,861 $ 684,930 Interest Cost on Total OPEB Liability 372,430 385,797 387,918 Changes in Benefit Terms - - - Differences Between Expected and Actual Experience 165,655 - 417,788 Changes in Assumptions 34,233 591,573 (2,363,827) Benefit Payments (484,966) (449,043) (406,464) Net Change in net OPEB Liability 750,645 1,086,188 (1,279,655) Net OPEB Liability-Beginning of Year 9,980,141 8,893,953 10,173,608 Net OPEB Liability-End of Year $ 10,730,786 $ 9,980,141 $ 8,893,953 Measurement Date 9/30/2020 9/30/2019 9/30/2018 NOTE: Information for FY 2017 and earlier is not available. Plan Fiduciary Net Position as of September 30: 2021 2020 2019 Contributions-Employer(including PEHP) $ 484,966 $ 449,043 $ 406,464 Net Investment Income - - - Benefit Payments (484,966) (449,043) (406,464) Administrative Expense - -Net Change in Fiduciary Net Position - - - Fiduciary Net Position-Beginning of Year - - - Fiduciary Net Position-End of Year $ - $ - $ - Net OPEB Liability 10,730,786 9,980,141 8,893,953 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 of salary,no information is provided. NOTE: Information for FY 2017 and earlier is not available. Notes to the Schedule: Benefit Changes None Changes of Assumptions The discount rate was changed as follows: 9/30/18 3.64% 9/30/19 4.18% 9/30/20 3.58% 9/30/21 2.14% Population covered by Plan: 291 Also the assumptions changed for healthcare costs and premiums,healthcare cost trends and salary increases, retirment,termination and disability rates. Plan has no specific trust established.$0 assigned for OPEB. Page 101 of 111 2018 $ 723,937 326,072 (620,125) (373,760) 56,124 10,117,484 $ 10,173,608 9/30/2017 2018 $ 373,760 (373,760) 10,173,608 0.00% NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF CHANGES IN THE DISTRICT'S NET PENSION LIABILITY AND RELATED RATIOS (UNAUDITED)-FIREFIGHTERS' PENSION TRUST FUND 2021 2020 2019 TOTAL PENSION LIABILITY: Net Change in Total Penson Liability $ 15,964,922 $ 13,059,479 $ 13,150,199 Total Pension Liability-Beginning of Year 110,312,027 97,252,548 84,102,349 Total Pension Liability-End of Year $ 126,276,949 $ 110,312,027 $ 97,252,548 2021 2020 2019 PLAN FIDUCIARY NET POSITION: Net Change in Fiduciary Net Position $ 26,671,007 $ 12,933,225 $ 7,964,763 Fiduciary Net Position-Beginning of Year 101,826,675 88,893,450 80,928,687 Fiduciary Net Position-End of Year $ 128,497,682 $ 101,826,675 $ 88,893,450 NET PENSION LIABIITY-ENDING $ (2,220,733) $ 8,485,352 $ 8,359,098 PLAN FIDUCIARY ENDING NET POSITION AS A PERCENTAGE OF TOTAL PENSION LIABILITY 101.76% 92.31% 91.40% COVERED EMPLOYEE PAYROLL $ 15,825,800 $ 14,829,151 $ 14,434,146 NET PENSION LIABILITY AS A PERCENTAGE OF COVERED EMPLOYEE PAYROLL -14.03% 57.22% 57.91% This schedule is presented as required by accounting principles generally accepted in the United States of America,however,until a full 10-year trend is completed,information is presented for those years available. The accompanying independent auditor's report should be read with these supplemental schedules. Page 102 of 111 2018 2017 2016 2015 $ 10,364,336 $ 12,030,957 $ 10,165,305 $ 4,074,169 73,738,012 61,707,055 51,541,750 47,467,581 $ 84,102,348 $ 73,738,012 S 61,707,055 $ 51,541,750 2018 2017 2016 2015 $ 10,180,873 $ 12,234,865 $ 6,978,753 $ 2,344,624 70,747,813 58,512,948 51,534,195 49,189,571 $ 80,928,686 $ 70,747,813 $ 58,512,948 $ 51,534,195 $ 3,173,662 $ 2,990,199 $ 3,194,107 $ 7,555 96.23% 95.94% 94.82% 99.99% $ 13,739,853 $ 13,771,976 $ 11,890,295 $ 9,674,942 23.10% 21.71% 26.86% 0.08% The accompanying independent auditor's report should be read with these supplemental schedules. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT SCHEDULE OF DISTRICT CONTRIBUTIONS (UNAUDITED) - FIREFIGHTERS' PENSION TRUST FUND 2021 2020 2019 2018 Contractually required contribution $ 3,606,617 $ 2,306,381 $ 2,769,139 $ 2,990,030 Contributions in relation to the contractually required contribution 3,606,617 2,306,381 2,769,139 2,990,030 Contribution deficiency(excess) $ - $ - $ - $ _ District's covered-employee payroll $ 15,825,800 $ 14,829,151 $ 14,434,146 $ 13,739,853 Contributions as a percentage of covered-employee payroll 22.79% 15.55% 19.18% 21.76% 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. Note: Measurement date was September 30 within the respective fiscal year. Page 103 of 111 2017 2016 2015 2014 $ 2,933,393 $ 1,735,437 $ 1,107,133 $ 1,518,926 2,933,393 1,735,437 1,107,133 1,518,926 $ - $ - $ - $ $ 13,771,976 $ 11,890,295 $ 9,671,942 $ 8,770,495 21.30% 14.60% 11.45% 17.32% NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 104 of 111 SCHEDULE OF INVESTMENT RETURNS-(UNAUDITED) FIREFIGHTERS' PENSION TRUST FUND Annual Money- Weighted Rate of return net of Year Ended investment September 30: expense 2021 20.28% 2020 9.40% 2019 3.58% 2018 8.82% 2018 13.28% 2016 7.21% 2015 (0.68%) 2014 9.31% 2013 12.79% 2012 15.23% 2011 (2.12%) NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 105 of 111 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION - FIREFIGHTERS' PENSION TRUST FUND September 30, 2021 Firefighters' Pension Trust Fund Valuation date 10/01/20 Actuarial cost method Entry Age Normal Amortization method Level dollar, closed Mortality table MP-2018 Combined Healthy Remaining amortization period 27 years(as of 10/1/17) Actuarial asset valuation method 5 Year Smoothed Market Actuarial assumptions: Investment rate 7.0%(net of fees) Projected salary increase Graduated based on Service (9%per year for first 10 years & (3%per year for 10 or more years) Inflation 2.5% Post retirement cost of living adjustment 3% Measurement date September 30, 2021 Changes of Assumptions Member contribution rate changed effective January 1, 2019 from 3%to 8.48%. District still pays .5%of member contribution. Benefit changes effective January 1, 2019: Increased benefit multiplier to 3.53% for all years of service. Effective July 1, 2019, the Plan must consider a firefighter permanently and totally disabled if diagnosed with cancer per Laws of Florida, Chapter 2019-21. For the year ended September 30, 2021, the following changes to assumptions occurred: 1) investment rate changed from 7.2% to 7.0%. ADDITIONAL REPORTS AAccounta tTTuscAN s Florida Institute of Certified Public Accountants & Con p1r1`rt P� American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 106 of 111 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, the basic financial statements of the governmental activities and each major and non-major fund of North Collier Fire Control and Rescue District(the "District") as of and for the year ended September 30, 2021, and the related notes to the financial statements which collectively comprise the District's basic financial statements as listed in the table of contents and have issued our report thereon dated May 13, 2022. Other auditors audited the financial statements of the District's Firefighters' Pension Trust Fund, as described in our report on the District's financial statements. This report does not include the results on the other auditors'testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. 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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly,we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907 • Phone: (239)333-2090•Fax: (239) 333-2097 Page 107 of 111 combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the basic financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined previously. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether North Collier Fire Control and Rescue District's financial statements are free from material misstatement,we performed tests of its compliance with certain provisions of laws,regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However,providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. 7A,1A)-04) 444p/ , TUSCAN&COMPANY, P.A. Fort Myers, Florida May 13, 2022 (/ 3 TUSCAN Affiliations Florida Institute of Certified Public Accountants & Company, PA American Institute of Certified Public Accountants Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 108 of 111 INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH SECTION 218.415,FLORIDA STATUTES Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 We have examined North Collier Fire Control and Rescue District's compliance with Section 218.415,Florida Statutes, regarding the investment of public funds during the year ended September 30, 2021. Management is responsible for North Collier Fire Control and Rescue District's compliance with those requirements. Our responsibility is to express an opinion on North Collier Fire Control and Rescue District's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about North Collier Fire Control and Rescue District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on North Collier Fire Control and Rescue District's compliance with specified requirements. In our opinion,North Collier Fire Control and Rescue District complied, in all material respects, with the aforementioned requirements for the year ended September 30,2021. This report is intended solely for the information and use of the North Collier Fire Control and Rescue District and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. L-/,,,Ak„,,o TUSCAN& COMPANY, P.A. Fort Myers, Florida May 13, 2022 INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane, Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097 T TuscAN Affiliations Florida Institute of Certified Public Accountants OtB11aSlt PA American Institute of Certified Public Accountants Cy Private Companies Practice Section Certified Public Accountants&Consultants Tax Division Page 109 of 111 INDEPENDENT AUDITOR'S REPORT TO MANAGEMENT Board of Commissioners North Collier Fire Control and Rescue District 1885 Veterans Park Drive Naples, Florida 34109-0492 We have audited the accompanying basic financial statements of North Collier Fire Control and Rescue District(the "District") as of and for the year ended September 30, 2021 and have issued our report thereon dated May 13, 2022. We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America and Chapter 10.550, Rules of the Florida Auditor General. We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards and Chapter 10.550, Rules of the Florida Auditor General. Disclosures in those reports, which are dated May 13, 2022, should be considered in conjunction with this report to management. Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of Florida. This letter included the following information, which is not included in the aforementioned auditor's report: • Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The prior year report contained no financially significant comments. • Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. No such recommendations were noted to improve financial management. INTEGRITY SERVICE EXPERIENCE 12621 World Plaza Lane,Building 55 •Fort Myers,FL 33907 •Phone: (239)333-2090•Fax: (239)333-2097 Page 110 of 111 • 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)(5).a. • 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. • Pursuant to Section 10.554(1)(i)6, Rules of the Auditor General,requires disclosure of certain unaudited data. See Exhibit 2. Page 111 of 111 • Pursuant to Section 10.554(1)(i)7,Rules of the Auditor General,requires an independent special district that imposes ad valorem taxes to disclose certain related unaudited data. See Exhibit 2. • Pursuant to Section 10.554(1)8, Rules of the Auditor General,requires an independent special district that imposes a non-ad valorem special assessment to disclose certain unaudited data. See Exhibit 2. • 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 May 13, 2022,included herein. PRIOR YEAR COMMENTS: There were no financially significant prior year comments. CURRENT YEAR COMMENTS: There were no financially significant comments noted. Pursuant to Chapter 119,Florida Statutes,this management letter is a public record and its distribution is not limited. Auditing standards generally accepted in the United States of America require us to indicate that this letter is intended solely for the information and use of the Board of Commissioners,management,the Auditor General of the State of Florida and other federal and state agencies. This report is not intended to be and should not be used by anyone other than these specified parties. /dAAjelki 1114iipl TUSCAN&COMPANY, P.A. Fort Myers, Florida May 13,2022 EXHIBIT 1 *. AArso1 June 9, 2022 Auditor General's Office Local Government Audits/342 Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450 We are pleased to note that the audit report for the fiscal year 2020/2021 for the North Collier Fire Control and Rescue District reflected no current or prior year comments which require management's response. The Board of Fire Commissioners and management staff of the North Collier Fire Control & Rescue District maintain their commitment to create and maintain internal controls, and policy and procedures to insure accurate reporting, accountability and provide for the financial stability of the District. Sincerely, NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT 1885 Veterans Park Drive Naples, FL 34109•(239)597-3222•northcollierfire.com FIRE CHIEF ELOY RICARDO BOARD OF FIRE COMMISSIONERS M.James Burke•Reginald Buxton•James A. Calamari•Norman E. Feder•J. Christopher Lombardo EXHIBIT 2 EXHIBIT 2 Page 1 UNAUDITED COMPLIANCE WITH REPORTING REQUIRED BY: Auditor General Rule 10.554(1)(i)6 For a dependent special district or an independent special district, or a local government entity that includes the information of a dependent special district as provided in Section 218.39(3)(a), Florida Statutes, the following specific information provided by management(with explanatory verbiage that the auditor provides no assurance on the information: a. The total number of district employees compensated in the last pay period of the district's fiscal year being reported (see information required in Section 218.32(1)(e)2.a., Florida Statutes). 270 including 4 commissioners b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district's fiscal year being reported(see information required in Section 218.32(1)(e)2.b., Florida Statutes). 19 c. All compensation earned by or awarded to employees,whether paid or accrued, regardless of contingency(see information required in Section 218.32(1)(e)2.c., Florida Statutes). (Total wage compensation for the fiscal year being audited) $23,226,086 d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued,regardless of contingency(see information required in Section 218.32(1)(e)2.d., Florida Statutes). (Amounts paid that would be reported on a Form 1099 for FYE) $ 864,784 e. Each construction project with a total cost of at least $65,000 approved by the district that was scheduled to begin on or after October 1 of the fiscal year being reported,together with the total expenditures for such project(see information required in Section 218.32(1)(e)2.e., Florida Statutes). N/A f. A budget variance report based on the budget adopted under section 189.016(4), Florida Statutes, before the beginning of the fiscal year reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes (see information required in Section 218.32(1)(e)3.,Florida Statutes). If there were amendments then include budget variance (original budget vs. actual at FYE). See attached page 3 -6. Page 2 Auditor General Rule 10.554(1)(i)7 For an independent special district that imposes ad valorem taxes, the following specific information provided by management(with explanatory verbiage that the auditor provides no assurance on the information): (see information required in Section 218.32(1)(e)4., Florida Statutes). a. The millage rate or rates imposed by the district. North Naples Service Delivery Area: 1.000 Big Corkscrew Service Delivery Area: 3.750 b. The current year gross amount of ad valorem taxes collected by or on behalf of the district. $42,755,907 c. The total amount of outstanding bonds issued by the district and terms of such bonds. N/A Auditor General Rule 10.554(1)(i)8 For an independent special district that imposes non-ad valorem special assessments, the following specific information provided by management (with explanatory verbiage that the auditor provides no assurance on the information): (see information required in Section 218.32(1)(e)5., Florida Statutes). a. The rate or rated of such assessment imposed by the district. N/A b. The total amount of special assessments collected by or on behalf of the district. N/A c. The total amount of outstanding bonds issued by the district and the terms of such bonds. N/A NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 3 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL-GENERAL FUND- SUMMARY STATEMENT-NN Year Ended September 30, 2021 General Fund Variance Original Favorable Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 34,187,222 $ 35,149,802 $ 962,580 Intergovernmental revenue: State firefighter supplement 62,669 56,643 (6,026) Federal grants 212,741 595,438 382,697 Other Intergovernmental 24,000 18,800 (5,200) Charges for services 454,696 755,435 300,739 Miscellaneous: Interest 258,000 44,632 (213,368) Other 190,915 211,222 20,307 Subtotal-revenues 35,390,243 36,831,972 1,441,729 Cash brought forward 16,210,141 - (16,210,141) TOTAL REVENUES 51,600,384 36,831,972 (14,768,412) EXPENDITURES Current Public safety Personnel services 29,984,513 29,675,123 309,390 Operating expenditures 6,220,636 6,099,920 120,716 Capital outlay 2,292,196 2,759,756 (467,560) Debt service: - Principal reduction 459,687 598,398 (138,711) Interest and fiscal charges 73,560 86,409 (12,849) Reserves 13,538,176 - 13,538,176 TOTAL EXPENDITURES 52,568,768 39,219,606 13,349,162 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (968,384) (2,387,634) (1,419,250) OTHER FINANCING SOURCES AND(USES) Proceeds from capital lease 963,162 1,106,574 143,412 Proceeds from disposition of capital assets 5,222 327,820 322,598 Transfer in - - - Transfer out - - - TOTAL OTHER FINANCING SOURCES AND(USES) 968,384 1,434,394 466,010 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - (953,240) $ (953,240) FUND BALANCE-Beginning 16,933,407 FUND BALANCE-Ending S 15,980,167 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 4 STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL - GENERAL FUND- SUMMARY STATEMENT-BCI Year Ended September 30, 2021 General Fund Variance Original Favorable Budget Actual (Unfavorable) REVENUES Ad Valorem taxes $ 7,445,069 $ 7,606,105 $ 161,036 Intergovernmental revenue: State firefighter supplement 9,331 - (9,331) Federal grants 31,677 - (31,677) Other intergovernmental - - - Charges for services 67,704 - (67,704) Miscellaneous: Interest 51,600 15,762 (35,838) Other 38,693 22,174 (16,519) Subtotal-revenues 7,644,074 7,644,041 (33) Cash brought forward 2,256,643 - (2,256,643) TOTAL REVENUES 9,900,717 7,644,041 (2,256,676) EXPENDITURES Current Public safety Personnel services 4,464,607 4,418,538 46,069 Operating expenditures 988,170 972,120 16,050 Capital outlay 341,300 410,921 (69,621) Debt service: - Principal reduction 68,446 89,100 (20,654) Interest and fiscal charges 10,953 12,866 (1,913) Reserves 4,171,431 - 4,171,431 TOTAL EXPENDITURES 10,044,907 5,903,545 4,141,362 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES (144,190) 1,740,496 1,884,686 OTHER FINANCING SOURCES AND USES Proceeds from capital lease 143,412 - (143,412) Proceeds from disposition of capital assets 778 - (778) Transfer in/(out) - - - TOTAL OTHER FINANCING SOURCES AND USES 144,190 - (144,190) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - 1,740,496 $ 1,740,496 FUND BALANCE-Beginning 2,904,072 FUND BALANCE-Ending S 4,644,568 The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 5 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -COMBINED SERVICE DELIVERY AREAS - BUDGET AND ACTUAL-IMPACT FEE FUND - SUMMARY STATEMENT Year Ended September 30, 2021 Impact Fee Fund Variance Original Favorable Budget Actual (Unfavorable) REVENUES Fees: Impact fees $ 1,000,000 $ 69,729 $ (930,271) Impact Fees-Collected/Deferred - - - Miscellaneous: Interest 15,000 3,882 (11,118) Transfer from General Fund - - - Other - - - Subtotal-revenues 1,015,000 73,611 (941,389) Cash brought forward 755,756 - (755,756) TOTAL REVENUES 1,770,756 73,611 (1,697,145) EXPENDITURES Current Public safety Operating expenditures 19,212 14,163 5,049 Capital outlay - - - Debt service: Principal 57,500 57,500 - Interest and fiscal charges 8,625 1,948 6,677 Reserves 1,685,419 - 1,685,419 TOTAL EXPENDITURES 1,770,756 73,611 1,697,145 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES - - - OTHER FINANCING SOURCES AND(USES) Transfers in(out) - - - TOTAL OTHER FINANCING SOURCES AND(USES) - - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER FINANCING USES $ - - $ - FUND BALANCE-Beginning - FUND BALANCE-Ending $ - The accompanying notes are an integral part of this statement. NORTH COLLIER FIRE CONTROL AND RESCUE DISTRICT Page 6 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL -COMBINED SERVICE DELIVERY AREA- INSPECTION FEE FUND-SUMMARY STATEMENT Year Ended September 30,2021 Inspection Fee Fund Variance Original Favorable Budget Actual (Unfavorable) REVENUES Charges for services Inspection fees $ 880,000 $ 1,514,889 $ 634,889 Plan review fees 1,150,000 1,124,203 (25,797) Miscellaneous: Interest 5,000 1,088 (3,912) Other 1,000 - (1,000) Subtotal-revenues 2,036,000 2,640,180 604,180 Cash brought forward 1,306 - (1,306) TOTAL REVENUES 2,037,306 2,640,180 602,874 EXPENDITURES Current Public safety Personnel services 1,844,435 1,913,563 (69,128) Operating expenditures 118,000 111,806 6,194 Capital outlay - - Reserves 74,871 - 74,871 TOTAL EXPENDITURES 2,037,306 2,025,369 11,937 EXCESS OF REVENUES OVER(UNDER)EXPENDITURES $ - 614,811 $ 614,811 FUND BALANCE-Beginning 164,820 FUND BALANCE-Ending $ 779,631 The accompanying notes are an integral part of this statement.