2024-04-16 VI. A. Exhibit 4, 2023 Audit Financials0
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City Of Okeechobee, Florida
FINANCIAL STATEMENTS
September 30, 2023
City of Okeechobee, Florida ■
Table of Contents ■
For the year ended September 30, 2023
Introductory Section
TitlePage...........................................................................................................................
1
Tableof Contents..............................................................................................................
2
CityOfficials......................................................................................................................
3
Financial Section
Independent Auditor's Report .........................................................................................
5
Management's Discussion and Analysis..........................................................................
9
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position — Governmental Activities .................................................
19
Statement of Activities — Governmental Activities.......................................................
20
Fund Financial Statements
Governmental Funds
Balance Sheet — Governmental Funds.....................................................................
21
Statement of Revenues, Expenditures and Changes in Fund
Balances—Governmental Funds.........................................................................
22
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ......................
23
Fiduciary Funds (Component Units that are Fiduciary in Nature)
Statement of Fiduciary Net Position - Pension Trust Funds ....................................
24
Statement of Changes in Fiduciary Net Position - Pension Trust Funds .................
25
Notes to Financial Statements......................................................................................... 27
Required Supplementary Information Other Than Management's Discussion and Analysis
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual - General Fund.......................................................................... 63
Required Pension Supplementary Information............................................................ 66
Schedule of Changes in Total OPEB Liability and Related Ratios ................................. 78
Notes to Required Supplementary Information........................................................... 80
Reports on Internal Control and Compliance Matters
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .......................... 83
Independent Auditor's Management Letter................................................................. 85
Independent Accountant's Report on Compliance with Local Government
InvestmentPolicies.................................................................................................. 87
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City of Okeechobee, Florida
City Officials
For the year ended September 30, 2023
Dowling R. Watford, Jr.
Mayor, Chairman
Monica Clark
Vice Mayor
Noel Candler
Bob Jarriel
David McAuley
Council Members
Gary Ritter
City Administrator
Lane Gamiotea
City Clerk
India Riedel
Finance Director
Donald Hagan
Chief of Police
David Allen
Director of Public Works
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CRI A R R
NGRAM
CPAs and Advisors
INDEPENDENT AUDITOR'S REPORT
To the City Council
City of Okeechobee, Florida
Report on the Audit of the Financial Statements
Opinions
Carr, Riggs & Ingram, LLC
215 Baytree Drive
Melbourne. Florida 32940
321.255.0088
386.336.4189 (fax)
CRlcpa.com
We have audited the accompanying financial statements of the governmental activities, each major
fund and the aggregate remaining fund information of the City of Okeechobee, Florida, (the "City")
as of and for the year ended September 30, 2023, and the related notes to the financial statements,
which collectively comprise the City of Okeechobee, Florida's basic financial statements as listed in
the table of contents.
In our opinion, based on our report and the report of the other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, each major fund, and the aggregate remaining fund information of the City
of Okeechobee, Florida, as of September 30, 2023 and the respective changes in financial position,
and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
We did not audit the financial statements of the pension trust funds of the City of Okeechobee,
Florida. Those statements were audited by other auditors whose report has been furnished to us,
hence our opinion relates to the pension trust funds' amounts included for the governmental
activities of the City of Okeechobee, Florida, is based solely on the report of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the City of
Okeechobee, Florida and to meet our other ethical responsibilities, in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for
the design, implementation, and maintenance of internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether due to
fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the City of
Okeechobee, Florida's ability to continue as a going concern for twelve months beyond the financial
statement date, including any currently known information that may raise substantial doubt shortly
thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's
report that includes our opinions. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
generally accepted auditing standards and Government Auditing Standards will always detect a
material misstatement when it exists. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they
would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City of Okeechobee, Florida's internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City of Okeechobee, Florida's ability to
continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control -related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary information and the pension and other
I M.
postemployment benefits information, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information is the responsibility of management
and, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory section but does not include the basic financial statements
and our auditor's report thereon. Our opinions on the basic financial statements do not cover the
other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information
and the basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 8,
2024, on our consideration of the City of Okeechobee, Florida's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements and other matters. The purpose of that report is solely to describe the scope
of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the City of Okeechobee, Florida's
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City of
Okeechobee, Florida's internal control over financial reporting and compliance.
�A'M,Winy
Melbourne, Florida
April 8, 2024
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City of Okeechobee, Florida
Management's Discussion and Analysis
Our discussion and analysis of the City of Okeechobee, Florida's ("the City's") financial performance
provides an overview• of the City's financial activities for the year ended September 30, 2023.
Please read it in conjunction with the City's basic financial statements, which immediately follow
this discussion.
FINANCIAL HIGHLIGHTS
The following are highlights of financial activity for the year ended September 30, 2023:
• The City's total assets exceeded its liabilities at September 30, 2023 by $23,505,616.
• The City's total revenues were $9,254,856 for the year ended September 30, 2023,
compared to total expenses of $6,428,567, which resulted in a $2,826,289 increase
in net position.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The basic financial statements are comprised of three components: 1) government -
wide financial statements, 2) fund financial statements and 3) notes to basic financial statements.
A. Government -Wide Financial Statements
The government -wide financial statements, which consist of the following two statements, are
designed to provide readers with a broad overview of the City's finances, in a manner similar to a
private sector business.
The statement of net position presents information on all of the City's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The statement of activities presents information showing how the City's net position changed
during the year. All changes in net position are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal
periods.
The government -wide financial statements can be found on pages 19 and 20 of this report.
B. Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City's funds can be divided into two fund
types: governmental funds and fiduciary funds.
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B. Fund Financial Statements (Continued)
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City of Okeechobee, Florida
Management's Discussion and Analysis
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike
the government -wide financial statements, governmental fund financial statements focus on near-
term inflows and outflows of spendable resources, as well as balances of spendable resources
available at the end of the year. Such information may be useful in evaluating a government's near-
term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long-term impact of the City's near-term financing
decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures
and changes in fund balances provide reconciliations to facilitate this comparison between
governmental funds and governmental activities.
The basic governmental fund financial statements can be found on pages 21 through 23 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the City's own
programs.
The basic fiduciary fund financial statements can be found on pages 24 and 25 of this report.
C. Notes to Basic Financial Statements
The notes provide additional information that is essential for a full understanding of the data
provided in the government -wide and fund financial statements. The notes to basic financial
statements can be found on pages 27 through 59 of this report.
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City of Okeechobee, Florida
Management's Discussion and Analysis
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of financial position. The
following table reflects the condensed government -wide statement of net position.
City of Okeechobee
Statement of Net Position
Governmental Activities
Total net position increased by $2,826,289 primarily as a result of a $5,584,021 decrease in
noncurrent assets. In addition, an increase in capital of assets of $1,542,384 and a $1,313,585
decrease unearned revenue also contributed to the increase in net position. The decrease in total
assets of $4,334,606 was primarily due to a $5,584,021 decrease in net pension assets due to prior
year investment losses that are recognized over the following five years through deferred inflows
and outflows due to the difference between projected and actual earnings on pension investments
in the actuarial valuation, offset by an increase of $1,542,384 in capital assets due to $2,251,940 in
capital asset additions offset by $709,556 in depreciation expense. The net decrease in current and
noncurrent liabilities was $100,965 as current liabilities decreased by $66,535 related to timing of
payables and non-current liabilities decreased by $34,430 resulting from a decrease in the OPEB
liability obligation of $41,547 and an increase in compensated absences of $7,117. Unearned
revenue decreased $1,313,585 due to the City's current year expenditures of American Rescue Plan
Act funds that were received in prior years and partially recognized as revenue in the current year.
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2023
2022
Current assets
$ 14,409,008 $
14,701,977
Capital assets
9,179,395
7,637,011
Noncurrent assets
57,770
5,641,791
Total assets
23,646,173
27,980,779
Deferred outflows
3,448,485
334,124
Unearned revenue
1,599,380
2,912,965
Current liabilities
519,949
586,484
Long-term liabilities
574,852
609,282
Total liabilities
2,694,181
4,108,731
Deferred inflows
894,861
3,526,845
Net position:
Net investment in capital assets
9,179,395
7,637,011
Restricted
4,012,012
3,795,194
Unrestricted
10,314,209
9,247,122
Total net position
$ 23,505,616 $
20,679,327
Governmental Activities
Total net position increased by $2,826,289 primarily as a result of a $5,584,021 decrease in
noncurrent assets. In addition, an increase in capital of assets of $1,542,384 and a $1,313,585
decrease unearned revenue also contributed to the increase in net position. The decrease in total
assets of $4,334,606 was primarily due to a $5,584,021 decrease in net pension assets due to prior
year investment losses that are recognized over the following five years through deferred inflows
and outflows due to the difference between projected and actual earnings on pension investments
in the actuarial valuation, offset by an increase of $1,542,384 in capital assets due to $2,251,940 in
capital asset additions offset by $709,556 in depreciation expense. The net decrease in current and
noncurrent liabilities was $100,965 as current liabilities decreased by $66,535 related to timing of
payables and non-current liabilities decreased by $34,430 resulting from a decrease in the OPEB
liability obligation of $41,547 and an increase in compensated absences of $7,117. Unearned
revenue decreased $1,313,585 due to the City's current year expenditures of American Rescue Plan
Act funds that were received in prior years and partially recognized as revenue in the current year.
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City of Okeechobee, Florida
Management's Discussion and Analysis
The following table shows condensed revenue and expense data:
City of Okeechobee, Florida
Statement of Activities
2023 2022
REVENUES:
Program revenues:
Charges for services
$ 1,063,540
$ 870,044
Operating grants and contributions
796,505
731,401
Capital grants and contributions
1,313,585
167,379
General revenues:
Property taxes
2,640,256
2,598,998
Public utility taxes
1,037,208
892,962
Franchise fees
798,672
650,583
Shared revenues
992,122
885,732
Investment income
528,394
72,356
Other income
84,574
30,944
Total revenues
9,254,856
6,900,399
EXPENSES:
General government
652,830
587,220
Public safety
3,542,202
3,040,360
Transportation
1,552,655
1,174,516
Physical environment
672,780
629,594
Economic environment
8,100
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Total expenses
6,428,567
5,431,690
Change in net position
2,826,289
1,468,709
Net position, beginning of year
20,679,327
19,210,618
Net position, end of year
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$ 23,505,616 $ 20,679,327
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City of Okeechobee, Florida
Management's Discussion and Analysis
The City experienced an increase of 34% in total revenues, a $2,354,457 increase to $9.25 million. The
increase is primarily due to a $1,146,206 increase in capital grants and contributions. Increase in
investment income of $456,038 as interest income increased due to the City investing in certificates
of deposit with a higher rate of return. Increases in charges for service of $193,496 due to an
increase in building permits and fees and special detail revenues. The franchise fee revenue
increase of $148,089 and public utility tax revenue of $144,246 are due to an increase in usage of
utilities within the City. Shared revenues increase of $106,390 and $65,104 in operating grant
revenues plus other income of $53,630 and property tax increase of $41,258 all contributed to the
increase in revenues for the year. The City experienced an 18.4% increase in total expenses — a
$996,877 increase to $6.4 million. The increase is primarily due to a $65,610 increase in expenses
for general government, $501,842 increase in public safety, $378,139 increase in transportation
expense, $43,186 increase in physical environment, and $8,100 in economic environment. The
combined increase of revenues with the offset of increased expenses resulted in an increase in net
position of $2,826,289.
FUND FINANCIAL ANALYSIS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on
near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the City's financing requirements. In particular, unassigned fund balance may serve as
a useful measure of a government's net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of 12,241,827, an increase of $1,087,194 in comparison with the prior year. Approximately
79% of this total amount $9,638,487, constitutes unassigned fund balance, which is available for
spending at the government's discretion. Assigned fund balances include $1,153,575 for subsequent
year's expenditures and $54,873 for community development expenditures. Public facilities fund
balance of $1,330,817 and non -major fund balance of $21,949 for law enforcement are restricted
funds based on their specific stipulated purpose. The remainder of the fund balance is non -spendable
inventory of $42,126.
The general fund is the chief operating fund of the City. At the end of the current fiscal year, assigned
and unassigned fund balance of the general fund was $10,802,007 while total fund balance was
$12,174,950. As a measure of the general fund's liquidity, it may be useful to compare both assigned
and unassigned fund balance, and total fund balance to total fund expenditures. The total assigned
and unassigned fund balance and total fund balance represent approximately 133% and 150%
respectively of total general fund expenditures.
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General Fund Budgetary Highlights
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City of Okeechobee, Florida
Management's Discussion and Analysis
Intergovernmental revenues was budgeted at $3,097,000 but actual was $4,530,344 due to the
timing of when American Rescue Plan Act funds were spent and therefore recognized as revenue.
The amount appropriated for expenditures in the original 22/23 budget decreased from $9,466,117
to $8,622,271 in the final 22/23 budget. Actual (on a budgetary basis) expenditures of $8,193,824
were less than the budgeted expenditures by $428,447. The decrease in budgeted police public
safety expenses, transportation expenses, physical environment, general government and capital
outlay expenses contributed to the overall decrease in expenditures.
CAPITAL ASSETS AND LONG-TERM LIABILITIES
Capital assets. The City's investment in capital assets as of September 30, 2023, amounted to
$9,179,395, (net of accumulated depreciation). This investment in capital assets includes land,
buildings, improvements, equipment, and construction in progress. During the year, the City's
capital asset balance increased by $1,542,384, net of depreciation expense of $709,556.
The City's major additions of $2,251,940 to capital assets during the current fiscal year included the
following:
• Infrastructure projects, including:
o Completion of Cattleman's Square
o Completion of SE 4th Street Drainage Project
• Resurfacing and extension of life for portions of NW P Avenue, SE 10th
Street, and SW 21St Street
• Replacement computers (1) Clerk office and (2) -Police Department; Added
TRACS Accident and Citation Software
• Replacement Dispatch consoles for communications
• Replacement mobile and portable radios (64) for Police and Public Works
• Impact Stormwater Cleaner Truck
• Ford F250 Super Duty Truck
• Diesel Fuel Pump/Dispenser
• Construction in Progress including:
o City hall hardening project
o Kayak Launch located at Centennial Park
o Primitive Baptist Church Restoration
o SE 8th Drainage Project
o SE 4th Street Stormwater Drainage
• Veterans Monument
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City of Okeechobee, Florida
Management's Discussion and Analysis
• Endcaps with landscaping for South Park Street
• Tractor with arm attachment.
• Tasers (1) including harnesses, etc.
• Picnic tables, trash receptacles purchased for city parks
• Completion of Stormwater System GIS Mapping
• Chamber of Commerce Building carpeting
City's Capital Assets
(net of depreciation)
2023 2022
Land
$ 1,435,648 $
1,435,648
Construction in progress
66,937
151,898
Buildings
1,011,217
1,089,269
Improvements other than buildings
4,691,016
3,750,547
Equipment
1,974,577
1,209,649
Total
$ 9,179,395 $
7,637,011
Additional information on the City's capital assets can be found in Note 3.C. on page 40 and 41 of
this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The City Council adopted a millage rate of 6.3556 for budget year 2024. The adopted millage rate is
the 2.84% more than the roll -back rate of 6.1801. A $139,248 increase in budgeted ad valorem
revenue is largely due to the increase in new construction added to this year's assessed tax rolls
and increase in taxable values from the prior year.
Revenues for the fiscal year 2024 adopted budget for all funds of the City total approximately
$12,490,021, an increase from the prior year final budget of approximately $3,543,631. These
revenues include the General, Public Facility, Capital Projects, Grant and Special Law Enforcement
fund revenues.
The change in revenue is based on the expected increase in grant revenue of $3,509,246. Other
expected increases in revenues, ad valorem Tax revenue, intergovernmental revenue, and charges
for services revenue. However, an expected decrease in fines, forfeitures revenues offsets the
budgeted increase.
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City of Okeechobee, Florida
Management's Discussion and Analysis
Expenditures for the fiscal year 2024 adopted budgets for all funds of the City total approximately
$13,760,270, an increase of 60% or $5,137,999 from the prior year final budget. The increase in
expenditure is based mostly on the increase in budgeted expenditures in capital grant projects,
public safety, and transportation. With a minimal increase in budgeted general governmental
services.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Okeechobee's finances
for all those with an interest. Questions concerning any of the information provided in this report
or requests for additional information should be addressed to the City of Okeechobee, 55 S.E. Third
Avenue, Okeechobee, Florida 34974.
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BASIC FINANCIAL STATEMENTS
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City of Okeechobee, Florida
Statement of Net Position - Governmental Activities
September 30, 2023
ASSETS
Cash and cash equivalents $ 6,379,992
1 nvestments 7,521,184
Accounts receivable 163,468
Due from other governments 302,238
Inventory
42,126
Capital assets:
3,448,485
Nondepreciable
3,448,485
Land
1,435,648
Construction in progress
66,937
Depreciable, net of accumulated depreciation
170,587
Buildings
1,011,217
Improvements other than buildings 4,691,016
Equipment 1,974,577
J
Net pension asset 57,770 C;
Total assets 23,646,173
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows - pensions
3,448,485
Total deferred outflows of resources
3,448,485
LIABILITIES
Accounts payable
349,362
Accrued expenses
170,587
Compensated absences - due within one year
42,518
Unearned revenue -American Rescue Plan Act
1,599,380—
Noncurrent liabilities:
Due in more than one year
Compensated absences
315,341
OPEB liability
216,993
Total liabilities
2,694,181
DEFERRED INFLOWS OF RESOURCES
Deferred inflows - business tax receipts
47,852
Deferred inflows - pensions
847,009
Total deferred inflows of resources
894,861
NET POSITION
Net investment in capital assets
9,179,395
Restricted for:
Law enforcement
21,949
Public facilities
1,330,817
Pension benefits
2,659,246
Unrestricted
10,314,209
Total net position
$ 23,505,616
The accompanying notes are an integral part of these financial statements.
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City of Okeechobee, Florida
Statement of Activities - Governmental Activities
Year ended September 30, 2023 Program Revenues Net (Expense)
Operating Capital Revenue and
Chargesfor Grants and Grants and Changes in
Functions/Programs Expenses Services Contributions Contributions Net Position
General government
$ 652,830
$ 226,451 $ - $ $
(426,379)
Public safety
3,542,202
196,751 34,792
(3,310,659)
Transportation
1,552,655
640,338 761,713
(150,604)
Physical environment
672,780
- - 1,313,585
640,805
Economic environment
8,100
- -
(8,100)
Total governmental
$ 23,505,616
activities
$ 6,428,567
$ 1,063,540 $ 796,505 $ 1,313,585
(3,254,937)
General revenues:
Property taxes
2,640,256
Public utility taxes
1,037,208
Franchise fees
798,672
Shared revenues not restricted to specific programs
992,122
Unrestricted investment earnings
528,394
Miscellaneous
84,574
Total general revenues
6,081,226
Change in net position
2,826,289
Net position, beginning of year
20,679,327
Net position, end of year
$ 23,505,616
The accompanying notes are an integral part of these financial statements.
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City of Okeechobee, Florida
Balance Sheet - Governmental Funds
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities
Accounts payable $ 309,530 $ $ 6,884 $ 32,948 $ 349,362
Accrued expenses 170,587 - - 170,587
Due to other funds - 40,000 8,303 48,303
Unearned revenue 1,471,221 128,159 - 1,599,380
Total liabilities
1,951,338
Industrial
Community
41,251
Total
Deferred inflows of resources:
Development
Development
Nonmajor
Governmental
September 30, 2023
General
Fund
Capital Project
Funds
Funds
ASSETS
Cash and cash equivalents
$ 6,126,896
$ 139,726
$ 31,757
$ 81,613
$ 6,379,992
Investments
7,521,184
-
-
-
7,521,184
Accounts receivable
163,393
-
75
163,468
Due from other funds
18,303
30,000
-
48,303
Due from other governments
302,238
-
21,949
302,238
Inventory
42,126
-
-
-
42,126
Total assets
$ 14,174,140
$ 139,726
$ 61,757
$ 81,688
$ 14,457,311
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities
Accounts payable $ 309,530 $ $ 6,884 $ 32,948 $ 349,362
Accrued expenses 170,587 - - 170,587
Due to other funds - 40,000 8,303 48,303
Unearned revenue 1,471,221 128,159 - 1,599,380
Total liabilities
1,951,338
168,159
6,884
41,251
2,167,632
Deferred inflows of resources:
Deferred revenue - business tax receipts
47,852
-
-
-
47,852
Fund balances:
Nonspendable for:
Inventory
42,126
42,126
Restricted for:
Public facilities
1,330,817
-
1,330,817
Law enforcement
-
-
21,949
21,949
Assigned for:
Community development
-
54,873
-
54,873
Subsequent year's expenditures
1,153,575
-
-
1,153,575
Unassigned
9,648,432
(28,433)
-
18,488
9,638,487
Total fund balances
12,174,950
(28,433)
54,873
40,437
12,241,827
Total liabilities, deferred inflows of
resources and fund balances
$ 14,174,140 $
139,726 $
61,757
$ 81,688
Amounts reported for governmental activities in the statement of net
position are different because:
Deferred outflows of resources related to pensions are not
recognized in the governmental funds; however, they are recorded
in the statement of net position under full accrual accounting. 3,448,485
Deferred inflows of resources related to pensions are not recognized in
governmental funds; however, they are recorded in the statement
of net position under full accrual accounting. (847,009)
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds. 9,179,395
Net pension assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds. 57,770
Long-term liabilities, including the net OPEB obligation of $216,993
and compensated absences of $357,859 are not due and payable
in the current period and, therefore, are not reported in the funds. (574,852)
Net position of governmental activities $ 23,505,616
The accompanying notes are an integral part of these financial statements.
-21-
E
City of Okeechobee, Florida
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Industrial Community Total
Development Development Nonmajor Governmental
Year ended September 30, 2023 General Fund Capital Project Funds Funds
Revenues
1,313,585
Taxes
$ 3,665,950 $ - $
- $ $ 3,665,950
Intergovernmental
4,530,244 -
- 4,530,244
Charges for services
805,484 -
- 805,484
Permits and fees
938,499 -
- - 938,499
Fines and forfeitures
60,883 -
- 3,612 64,495
Investment earnings
528,394 -
- - 528,394
Miscellaneous
51,684 -
- - 51,684
Total revenues
10,581,138 -
- 3,612 10,584,750
Expenditures
1,313,585
- 63,640
1,377,225
Current:
(1,377,225)
-
- -
(1,377,225)
General government
1,601,455
1,313,585
- 63,640
1,601,455
Public safety
3,777,001
-
(6,884) 22,100
3,777,001
Transportation
1,539,866
-
-
1,539,866
Physical environment
283,406
35,788
- 8,100
327,294
Capital outlay
930,207
1,277,797
6,884 37,052
2,251,940
Total expenditures
8,131,935
1,313,585
6,884 45,152
9,497,556
Excess (deficiency) of revenues
over (under) expenditures
2,449,203
(1,313,585)
(6,884) (41,540)
1,087,194
Other financing sources (uses)
Transfers in
1,313,585
- 63,640
1,377,225
Transfers out
(1,377,225)
-
- -
(1,377,225)
Total other financing sources (uses)
(1,377,225)
1,313,585
- 63,640
-
Net change in fund balances
1,071,978
-
(6,884) 22,100
1,087,194
Fund balances, beginning of year
11,102,972
(28,433)
61,757 18,337
11,154,633
Fund balances, end of year
$ 12,174,950 $
(28,433) $
54,873 $ 40,437
$ 12,241,827
The accompanying notes are an integral part of these financial statements.
-22-
City of Okeechobee, Florida
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities
Year ended September 30, 2023
Net change in fund balances - total governmental funds $ 1,087,194
Amounts reported for governmental activities in the statement of activities
are different because:
Capital assets used in government activities are not financial
resources and, therefore, are not reported in the funds.
Capital outlay $ 2,251,940
Depreciation expense (709,556) 1,542,384
Pension contributions are reported as expenditures in the fund financial
statements and the change in net position asset and related outflows (inflows)
are reported on the statement of activities. 162,281
Other post employment benefits are reported as expenditures in the fund
financial statements and the change in net position asset and related outflows
(inflows) are reported on the statement of activities. 41,547
Compensated absences are reported in the statement of activities when earned.
Only compensated absences that require the use of current financial resources
are reported as expenditures in the governmental funds. This is the
difference between the two. (7,117
Change in net position of governmental activities $ 2,826,289
The accompanying notes are an integral part of these financial statements.
-23-
City of Okeechobee, Florida
Statement of Fiduciary Net Position - Pension Trust Funds
Pension
September 30, 2023 Trust Funds
ASSETS
Cash equivalents
$ 236,572
Investments:
Mutual funds
19,490,952
Receivables
200,683
Prepaid expenses
1,478
Total assets
19,929,685
LIABILITIES
Accounts payable 34,110
Total liabilities 34,110
NET POSITION
Restricted for pension benefits $ 19,895,575
The accompanying notes are an integral part of these financial statements.
-24-
E
City of Okeechobee, Florida
Statement of Changes in Fiduciary Net Position - Pension Trust Funds
Pension
Year ended September 30, 2023 Trust Funds
ADDITIONS
Contributions:
State
$ 181,506
City
73,557
Employees
144,991
Total contributions
400,054
Investment earnings:
Net appreciation in the
fair value of investments
1,726,235
Interest and dividends
622,002
Total investment earnings
2,348,237
Less investment expenses
(67,150)
Net investment gain
2,281,087
Total additions 2,681,141
DEDUCTIONS
Benefits paid to participants 866,441
Refunds on termination 20,907
DROP payments 268,238
Administrative expenses 185,375
Total deductions 1,340,961
Change in net position 1,340,180
Net position, beginning of year 18,555,395
Net position, end of year $ 19,895,575
The accompanying notes are an integral part of these financial statements.
-25-
THIS PAGE IS INTENTIONALLY LEFT BLANK.
-26-
f�
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
E
City of Okeechobee, Florida
Notes to Financial Statements
The City of Okeechobee (the "City") was originally incorporated in 1915 and its present charter was
adopted in 1919 under Chapter 8318 of Special Acts of 1919. The City operates under the council form
of government and provides the following services: general government, public safety, transportation
and physical environment.
These financial statements present the primary government and its component units. Blended
component units, although legally separate entities, are, in substance, part of the government's
operations and so data from these units are combined with data of the primary government.
Discretely presented component units are entities that are legally separate from the City, but whose
relationship with the City are such that the exclusion would cause the City's financial statements to be
misleading or incomplete. The City has no discretely presented component units.
The City reports the following component units:
Municipal Firefighters' Pension Trust Fund — The fund is under the supervision of a five member local
independent Board of Trustees who are selected for office under the provisions of Florida Statutes,
Chapter 175. The Board of Trustees cannot amend the provisions of the plan without the approval of
the City Council. This plan covers all full-time firefighters of the City. The City funds the plan, according
to any contribution deficit as determined by an actuarial valuation for the plan, beyond the
contributions by employees and the State Insurance Premium Tax Contribution. It is accounted for in
the Pension Trust funds.
Municipal Police Officers' Pension Trust Fund — The fund is under the supervision of a five member
local independent Board of Trustees who are selected for office under the provisions of Florida
Statutes, Chapter 185. The Board of Trustees cannot amend the provisions of the plan without the
approval of the City Council. This plan covers all full-time sworn officers of the City. The City funds the
plan, according to any contribution deficit as determined by an actuarial valuation for the plan,
beyond the contributions by employees and the State Insurance Premium Tax Contribution. It is
accounted for in the Pension Trust funds.
The Employees' Retirement System of the City of Okeechobee, Florida — The fund is under the
supervision of a five member local independent Board of Trustees. The Board of Trustees cannot
amend the provisions of the plan without the approval of the City Council. This plan benefits the City
general employees. The City funds the plan. It is accounted for in the Pension Trust funds in 2023 as
the City does have fiduciary responsibility.
-27-
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. GOVERNMENT -WIDE AND FUND 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 nonfiduciary activities of the primary government.
Governmental activities normally are supported by taxes and intergovernmental revenues.
Likewise the primary government is reported separately from certain legally separate component
units for which the primary government is financially accountable.
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. Program revenues include 1) charges to customers or applicants who purchase,
use or directly benefit from goods, services or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the fiduciary fund financial
statements. Revenues are recorded when earned and expenditures are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon as
all eligibility requirements imposed by the provider have been met.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, charges for services and interest associated with the
current fiscal period are all considered to be susceptible to accrual and so have been recognized
as revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the government.
-28-
City of Okeechobee.. Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
(Continued)
The City reports the following major governmental funds:
The general fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The community development capital project fund accounts for the assets, liabilities, revenues
and expenditures related to the construction of infrastructure and other improvements in the
City not including grant funds that are instead included in the appropriations grant capital
project fund.
The Industrial Development fund accounts for all financial resources used for infrastructure
construction, improvement and equipment purchases.
The City reports the following nonmajor governmental funds:
The law enforcement special revenue fund accounts for the assets that are restricted to fund
certain expenditures of the City's police department.
The appropriations grant capital projects fund accounts for the financial resources related to
the construction of infrastructure and other improvements in the City provided by specific
grants and matching funds.
Additionally, the City reports the following fund types:
The pension trust fund account is used to account for assets held by the City in a fiduciary
capacity for the general employees', police officers' and firefighters' pension plans. The funds
are operated by carrying out specific terms of statutes, ordinances and other governing
regulations.
The effect of interfund activity has been eliminated from the government -wide financial
statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services or privileges provided, 2) operating grants and contributions and 3) capital grants and
contributions. Internally dedicated resources are reported as general revenues rather than pro-
gram revenues. Therefore, general revenue includes all taxes.
Expenditures for compensated absences are allocated based on the assigned function of the related
employee.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
-29-
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY
1. Cash, Cash Equivalents and Investments
The investment of municipal funds is authorized by local ordinance and Florida Statutes. This allows
the City to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental
investment pool authorized pursuant to the Florida Interlocal Cooperation Act, SEC registered money
market funds with the highest credit quality rating, interest-bearing time deposits or savings accounts
in qualified public depositories, direct obligations of the U.S. Treasury, commercial paper with certain
ratings, pre -refunded municipal obligations, banker's acceptances maturing within one year,
investment agreements, direct and general long-term and short-term obligations of any state with
proper credit rating and full faith and credit pledge, municipal obligations with proper credit rating
and repurchase agreements with maturities of 30 days or less with organizations with certain
stipulations and requirements.
The City invests certain surplus funds in an external investment pool, the Local Government Surplus
Funds Trust Fund (the "State Pool"). The State Pool is administered by the Florida State Board of
Administration ("SBA"), who provides regulatory oversight.
The Florida PRIME has adopted operating procedures consistent with the requirements for an
investment pool under GASB 150: Investments to be reported at amortized cost. The fair value of the
City's position in the pool is equal to the value of pooled shares. The funds can be withdrawn at any
time, and there are no unfunded commitments.
The City pools the investments of its governmental funds. Investment earnings of the pool are
allocated to the participating funds at the end of each month based on the ratio of each participant
funds' investment to the total pooled investment.
Cash and cash equivalents include cash deposits, cash funds held in broker accounts and investments
held in the Local Government Surplus Funds Trust Fund (Florida PRIME).
Within the firefighters', police officers' and general employees' pension trust funds, plan assets are
managed by Bowen, Hanes, and Company. The plans follow the investment guidelines as established
within the ordinance. The pension trust funds are allowed to invest in the State Pool; obligations of
the U.S. Government or agencies thereof, banking institutions within the state and other such
institutions within the guidelines of the state statutes, which are insured by the Federal Deposit
Insurance Corporation; investments agreements; direct and general long-term obligations of any state
with proper credit rating and full faith and credit pledge; municipal obligations with proper credit
rating; annuity and life insurance contracts; bonds issued by the State of Israel; and stocks, bonds, and
commingled funds administered by National or State banks or evidences of indebtedness issued or
guaranteed by a corporation organized under the laws of the United States, provided that the
corporation is listed on a nationally recognized exchange and holds proper credit ratings as set forth
by a major credit rating service. These equity investments are not to exceed 60% of the assets of the
pension trust funds on a cost basis. Temporary investment funds held by the custodian in a money
market fund are classified as cash equivalents within the investment account.
-30-
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued)
1. Cash, Cash Equivalents and Investments (Continued)
Pension trust fund investments are reported at fair value. Securities traded on a national or
international exchange are valued at the last reported sales price. Shares of mutual funds, including
proprietary funds and common and collective funds, are valued at quoted market prices, which
represent the net asset value of shares held by the pension trust fund at year-end. Interest is
recognized when earned. Gains and losses from the sale or exchange of investments are recognized
on the transaction date. The difference between the excess of fair value over cost represents
unrealized gains.
2. Receivables and Payables
All trade and property tax receivables are considered to be fully collectible.
The City's property tax is levied annually on the real and personal property located in the City on
January 1st of the prior year. Tax collections by the Okeechobee County tax collector begin in
November of each year with a due date of March 31 of the following year. All property taxes
remaining unpaid at May 30 are subject to a tax certificate sale.
The City is permitted by State law to levy taxes up to 10 mills on assessed valuation. During a
Special Session in June 2007, the Florida Legislature adopted 1-11316, which limits municipal property
tax rates beginning in the 2008 fiscal year. This legislation established reductions in the millage rate
based on a calculated growth in per capita taxes between the 2002 and 2007 fiscal years. The
Legislature did authorize local governments to use the rolled back millage rate if approved by a
super majority vote of the governing body. The Okeechobee City Council levy for the fiscal year
ended September 30, 2023 was 6.8987 mills, which is 11.63% more than the rolled back rate.
The City Council determines the millage rates and adopts a tax levy by resolution prior to September
30 to fund the next ensuing fiscal year's budget. The assessment of all properties and collection of
municipal taxes are provided by the County's Property Appraiser and Tax Collector. The ad valorem
tax calendar is as follows:
Lien date
- January 1
Levy date
- Prior to September 30
Due date
- November 1
Delinquent date
- April 1
3. Inventory
Inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method.
The costs of inventories are recorded as expenditures when used (consumption method).
-31-
• 0
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued)
4. Capital Assets
Capital assets, which include: property, plant, equipment and infrastructure assets (e.g., roads,
bridges, sidewalks and similar items), are reported in the government -wide financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more than
$500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Donated capital assets are recorded at
acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets' lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed.
Property, plant and equipment are depreciated using the straight-line method over the following esti-
mated useful lives:
Assets Years
Buildings
25-60
Building improvements
12-20
Vehicles
10
Equipment
5-15
S. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All sick and vacation pay is accrued when incurred in the government -wide financial
statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements.
6. Deferred Inflows and Outflows of Resources
The deferred outflows and inflows related to pensions are an aggregate of items related to
pensions as calculated in accordance with GASB Statement No. 68, Accounting and Financial
Reporting for Pensions. Total deferred inflows of resources related to pensions were $847,009, and
total deferred outflows were $3,448,485 for the year ended September 30, 2023. Note 4-B includes
a complete discussion of retirement commitments.
Resources received before time requirements have been met, for example business tax revenues,
are classified as deferred inflows of resources.
7. Unearned Revenue
Unearned revenue recorded on the governmental fund balance sheet represents amounts
received before eligibility requirements are met.
-32-
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued)
8. Long-term Obligations
In the government -wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the statement of net position. In the governmental fund financial
statements, the face amount of debt issued is reported as other financing sources.
9. Fund Equity
The governmental fund financial statements present fund balances based on classifications that
comprise a hierarchy that is based primarily on the extent to which the City is bound to honor
constraints on the specific purposes for which amounts in the respective governmental funds can be
spent. The classifications used in the governmental fund financial statements are as follows:
Nonspendable Fund Balance — Amounts that are (a) not in spendable form or (b) legally or
contractually required to be maintained intact. "Not in spendable form" includes items that are not
expected to be converted to cash (such as inventories and prepaid amounts) and items such as long-
term amounts of loans and notes receivables, as well as property acquired for resale. The corpus (or
principal) of a permanent fund is an example of an amount that is legally or contractually required to
be maintained intact.
Restricted Fund Balance — Amounts that can be spent only for specific purposes stipulated by (a)
external resource providers such as creditors (by debt covenants), grantors, contributors or laws or
regulations of other governments; or (b) imposed by law through constitutional provisions or
enabling legislation.
Committed Fund Balance — Amounts that can be used only for the specific purposes determined by a
formal action (resolution) of the Council, the Council's highest level of decision making authority.
Commitments may be changed or lifted only by the council taking the same formal action (resolution)
that imposed the constraint originally. The City had no committed fund balance at year end.
Assigned Fund Balance — Includes spendable fund balance amounts established by the City
Administrator or the Council that are intended to be used for specific purposes that are neither
considered restricted or committed.
Unassigned Fund Balance — Unassigned fund balance is the residual classification for the general
fund. This classification represents fund balance that has not been assigned to other funds and that
has not been restricted, committed or assigned to specific purposes within the general fund.
Unassigned fund balance may also include negative balances for any governmental fund if
expenditures exceed amounts restricted, committed or assigned for those specific purposes.
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• 0
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued)
9. Fund Equity (Continued)
The City would typically use restricted fund balances first, followed by committed resources and
then assigned resources, as appropriate opportunities arise, but reserves the right to selectively
spend unassigned resources first to defer the use of these other classified funds.
10. Pensions
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 City's Police Officers' and Firefighters' pension trust funds and the Florida Retirement
System Pension Plan and Health Insurance Subsidy Program and additions to/deductions from the
plans' 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 employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported at
fair value.
11. Other Post -Employment Benefits
The City participates in a single employer, defined benefit, other post -employment plan. The City does
not have a trust for the plan, and there is no actuarially determined contribution. The OPEB liability is
determined in accordance with GASBC P52: Other Post -employment Benefits.
12. Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions. This will affect the reported amounts of assets, liabilities, deferred inflows and
deferred outflows, the disclosure of contingent assets, liabilities, deferred inflows and deferred
outflows at the date of the financial statements, and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from these
estimates.
13. Subsequent Events
Management has evaluated subsequent events through the date that the financial statements
were available to be issued, April 8, 2024, see Note 5. No subsequent events occurring after this
date have been evaluated for inclusion in these financial statements.
-34-
0 •
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued)
14. Recently Issued and Implemented Accounting Pronouncements
In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of
this statement are to provide a single method of reporting conduit debt obligations by issuers and
eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements
associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves
those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a
conduit debt obligation is not a liability of the issuer; establishing standards for accounting and
financial reporting of additional commitments and voluntary commitments extended by issuers and
arrangements associated with conduit debt obligations; and improving required note disclosures.
There were no significant impacts of implementing this Statement.
In May 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates. The
objectives of this Statement are to address financial reporting issues that result from the replacement
of an Interbank Offered Rate (IBOR) by providing exceptions for certain hedging derivative instruments
to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the
hedging derivative instrument's variable payment and clarification of the hedge accounting
termination provisions when a hedged item is amended to replace the reference rate; replacing LIBOR
as an appropriate benchmark interest rate for the evaluation of the effectiveness of an interest rate
swap with a Secured Overnight Financing Rate or the Effective Federal Funds Rate; and providing
exceptions to the lease modifications guidance in Statement 87 for lease contracts that are amended
solely to replace an IBOR used to determine variable payments. As of July 1, 2023, derivate
instruments that hedge the interest rate risk of taxable debt and use an IBOR as a reference rate are
no longer eligible for hedge accounting. There were no significant impacts of implementing this
Statement.
In May 2020, the GASB issued GASB Statement No. 96, Subscription -Based Information Technology
Arrangements. This Statement provides guidance on the accounting and financial reporting for
subscription -based information technology arrangements (SBITAs) for government end users
(governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right -to -use
subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the
capitalization criteria for outlays other than subscription payments, including implementation costs of
a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for
SBITAs are based on the standards established in Statement No. 87, Leases, as amended. The
requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all
reporting periods thereafter. Assets and liabilities resulting from SBITAs should be recognized and
measured using the facts and circumstances that existed at the beginning of the fiscal year in which
this Statement is implemented. Governments are permitted, but are not required, to include in the
measurement of the subscription asset capitalizable outlays associated with the initial
implementation stage and the operation and additional implementation stage incurred prior to the
implementation of this Statement. There were no significant impacts of implementing this Statement.
-35-
0 •
City of Okeechobee, Florida
Notes to Financial Statements
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. ASSETS, LIABILITIES, DEFERRED INFLOWS AND NET POSITION OR EQUITY (Continued)
14. Recently Issued and Implemented Accounting Pronouncements (Continued)
The Governmental Accounting Standards Board has issued statements that will become effective in
future years. These statements are as follows:
GASB Statement No. 100, Accounting Changes and Error Corrections, this Statement establishes
accounting and financial reporting requirements for (a) accounting changes and (b) the
correction of an error in previously issued financial statements (error correction). This Statement
defines accounting changes as changes in accounting principles, changes in accounting estimates,
and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. This Statement prescribes the accounting and financial
reporting for (1) each type of accounting change and (2) error corrections. This Statement
requires that (a) changes in accounting principles and error corrections be reported retroactively
by restating prior periods, (b) changes to or within the financial reporting entity be reported by
adjusting beginning balances of the current period, and (c) changes in accounting estimates be
reported prospectively by recognizing the change in the current period. This Statement requires
disclosure in notes to financial statements of descriptive information about accounting changes
and error corrections, such as their nature. In addition, information about the quantitative
effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously
reported to beginning balances as restated. Furthermore, this Statement addresses how
information that is affected by a change in accounting principle or error correction should be
presented in required supplementary information (RSI) and supplementary information (SI). The
requirements of this Statement are effective for accounting changes and error corrections made
in fiscal years beginning after lune 15, 2023, and all reporting periods thereafter.
GASB Statement No. 101, Compensated Absences, The objective of this Statement is to better meet
the information needs of financial statement users by updating the recognition and measurement
guidance for compensated absences. That objective is achieved by aligning the recognition and
measurement guidance under a unified model and by amending certain previously required
disclosures. The requirements of this Statement are effective for fiscal years beginning after
December 15, 2023, and all reporting periods thereafter.
The City is evaluating the requirements of the above statements and the impact on reporting.
-36-
C1
Note 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. BUDGETARY INFORMATION
•
City of Okeechobee, Florida
Notes to Financial Statements
As permitted by GASB Statement No. 34, Basic Financial Statements and Management Discussion
and Analysis for State and Local Governments, the City has elected to disclose all budgetary
information in the notes to the required supplementary information.
Note 3: DETAILED NOTES ON ALL FUNDS
A. DEPOSITS AND INVESTMENTS
As of September 30, 2023, $250,000 of the City's bank balances is covered by federal depository
insurance (FDIC). Monies invested in amounts greater than the insurance coverage are secured by
the qualified public depositories pledging securities with the State Treasurer in such amounts
required by the Florida Security for Public Depositories Act. In the event of a default or insolvency
of a qualified public depositor, the State Treasurer will implement procedures for payment of losses
according to the validated claims of the City pursuant to Section 280.08, Florida Statutes.
At the close of the fiscal year, the City held investments in the Local Government Surplus Funds
Trust Fund ("Florida PRIME") external investment pool. The Florida PRIME is administered by the
Florida State Board of Administration ("SBA"), who provides regulatory oversight. Florida PRIME
currently meets all of the necessary criteria set forth in Section 150: Investment Pools (External) of
the GASB Codification to measure its investments at amortized cost; therefore, the City's account
balance in the SBA is also reported at amortized cost.
Fair Value
GASBC 150: Investments, establishes a framework for measuring fair value. That framework provides a
fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3
measurements).
-37-
0
City of Okeechobee, Florida
Notes to Financial Statements
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
A. DEPOSITS AND INVESTMENTS (Continued)
The three levels of the fair value hierarchy under GASBC 150 are described as follows:
Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets
or liabilities in active markets that the plan has the ability to access.
Level 2: Inputs to the valuation methodology include:
• quoted prices for similar assets or liabilities in active markets;
• quoted prices for identical or similar assets or liabilities in inactive markets;
• inputs other than quoted prices that are observable for the asset or liability;
• inputs that are derived principally from or corroborated by observable market
data by correlation or other means.
If the asset or liability has a specified (contractual) term, the level 2 input must be
observable for substantially the full term of the asset or liability.
Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
The asset or liability's fair value measurement level within the fair value hierarchy is based on the
lowest level of any input that is significant to the fair value measurement. Valuation techniques used
need to maximize the use of observable inputs and minimize the use of unobservable inputs.
The following is a description of the valuation methodologies used for assets measured at fair value.
There have been no changes in the methodologies used at September 30, 2023.
Level 1 investments noted in the following table are valued at quoted market prices
Level 2 investments noted in the following table are valued at quoted prices for similar liabilities in
active markets.
The money market fund is valued at amortized cost. They can be redeemed daily, and have no
unfunded commitments.
Mutual funds — equities are valued at quoted market prices.
Mutual funds —fixed income are valued using price models maximizing the use of observable inputs
for similar securities. This includes basing value on yield currently available on comparable securities
of issues with similar credit ratings.
-38-
E
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
A. DEPOSITS AND INVESTMENTS (Continued)
0
City of Okeechobee, Florida
Notes to Financial Statements
At September 30, 2023, the City had the following investments and effective duration presented in
terms of years and levels:
Investment type Fair Value Less than 1 1 - 5 6-10 More than 10 Rating Agency Level
Primary government:
SBA (Florida Prime) $ 7,521,184 $ 7,521,184 $ - $ - $ - AAAm S&P
Primary government total $ 7,521,184 $ 7,521,184 $ - $ - $ -
Pension trust funds:
Mutual funds -equities $ 11,793,052 $ - $ - $ 11,793,052 $ - Not rated - Ll
MutuaIfunds- fixedincome 7,697,900 7,697,900 BBB - AA S&P L2
19,490,952 $ $ $ 19,490,952 $
Cash Equivalents, at amortized cost
Money Market Fund 236,572
Total Cash Equivalents, at cost 236,572
Pension trust fund total $ 19,727,524
Credit risk
Credit risk for fixed income securities is the risk that the issuer will not fulfill its obligations. The City's
investment policy does not address credit risk; however, investments are limited to state sponsored
investment pools, which are diversified in their underlying portfolios so that potential losses will be
minimized. The investment policies for the firefighters', police officers' and general employees'
pension trust funds limit investments to securities with specific ranking criteria.
Interest rate risk
Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect
an investment's fair value. In accordance with Florida Statute 218.415(6), the City's policy is to
match investment maturities with known cash needs and anticipated cash flow requirements. The
City's pension trust funds do not address interest rate risk.
Concentration of credit risk
Concentration of credit risk is an increased risk of loss that occurs as more investments are
acquired from one issuer (i.e. lack of diversification). The City's investment policy and the
investment policies for the firefighters', police officers' and general employees' pension trust funds
do not specifically address concentration of credit risk.
Foreign currency risk
The City's firefighters', police officers', and general employees' pension trust funds contain
investments in foreign corporate bonds; however, all of the investments are denominated in U.S.
dollars and are not exposed to foreign currency risk.
-39-
0
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
B. RECEIVABLES
Receivables as of September 30, 2023 are as follows:
IBJ
City of Okeechobee, Florida
Notes to Financial Statements
Law Municipal
Enforcement Police Officers'
General Special Pension
Fund Revenue Fund Trust
Municipal
Firefighters'
Pension
Trust
General
Employees
Pension Trust
Franchise/Utility taxes $ 152,476 $ - $ - $ - $ -
Contributions - - 113,849 77,569 9,265
Other 11,009 75 - - -
Receivables, net $ 163,393 $ 75 $ 113,849 $ 77,569 $ 9,265
C. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2023 was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $ 1,435,648 $ - $ $ - $ 1,435,648
Construction in progress 151,898 66,937 (151,898) 66,937
Total capital assets, not being depreciated 1,587,546 66,937 (151,898) 1,502,585
Capital assets, being depreciated
Buildings
2,481,722 -
- - 2,481,722
Improvements other than buildings
8,693,438 1,166,903
- 148,603 10,008,944
Equipment
3,162,890 1,018,100
- 3,295 4,184,285
Total capital assets, being depreciated
14,338,050 2,185,003
- 151,898 16,674,951
Less accumulated depreciation for
Buildings
(1,392,453)
(78,052)
(1,470,505)
Improvements other than buildings
(4,942,891)
(375,037)
- (5,317,928)
Equipment
(1,953,241)
(256,467)
(2,209,708)
Total accumulated depreciation
(8,288,585)
(709,556)
(8,998,141)
Total capital assets, being depreciated, net 6,049,465 1,475,447 - 151,898 7,676,810
Governmental activities capital assets, net $ 7,637,011 $ 1,542,384 $ - $ - $ 9,179,395
-40-
City of Okeechobee, Florida
Notes to Financial Statements
Note 3: DETAILED NOTES ON ALL FUNDS (Continued)
C. CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the government as follows:
Governmental activities:
General government $ 140,566
Public safety 184,235
Physical environment 384,755
Total depreciation expense -governmental activities $ 709,556
D. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund loans for short-term operating purposes resulted in a due to the General fund from the
Law Enforcement Special Revenue fund of $8,303 and of $10,000 from the Industrial Development
fund, and a due to the Community Development Capital Projects fund from the Industrial
Development fund of $30,000.
Due from:
Industrial
Development
Nonmajor Funds Fund Total
Due to:
General Fund $ 8,303 $ 10,000 $ 18,303
Community Development Capital Project - 30,000 30,000
Total $ 8,303 $ 40,000 $ 48,303
E. CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended September 30, 2023, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Compensated absences $ 350,742 $ 217,699 $ (210,582) $ 357,859 $ 42,518
Net OPEB liability 258,540 27,730 (69,277) 216,993 -
Long-term liabilities $ 609,282 $ 245,429 $ (279,859) $ 574,852 $ 42,518
For the governmental activities, compensated absences are generally liquidated by the general fund.
-41-
0
Note 4: OTHER INFORMATION
A. RISK MANAGEMENT
u
City of Okeechobee, Florida
Notes to Financial Statements
The City is exposed to various risks of loss, including, but not limited to theft, damage or destruction of
its buildings, equipment, records and monetary assets, and liability for personal injury, property
damage and consequences of employee and public official actions. The City participates in a non -
assessable public risk pool to cover significant loss exposure and purchases commercial insurance for
third party pollution liability coverage. The pool maintains a loss reserve and purchases specific
excess insurance, aggregate excess insurance and multiple loss coverage from commercial carriers
and underwriters.
B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS
Plan Descriptions — The City contributes to two single -employer defined benefit pension plans: City of
Okeechobee Municipal Police Officers' Pension Trust Fund and City of Okeechobee Municipal
Firefighters' Pension Trust Fund (the "Plans"). The Plans provide retirement, disability and death
benefits to plan members and their beneficiaries. Chapters 185 and 175 of the Florida Statutes
establish the minimum benefits and the minimum standards for the operation and funding of the
Police Officers' and the Firefighters' Municipal Pension Trust Funds, respectively. Per City Ordinances
Nos. 750 and 749, sole responsibility for administering the Plans is vested in the Board of Trustees of
each plan. The Boards cannot amend the provisions of the plans without the approval of the City. The
Plans issue publicly available financial reports that include financial statements and required
supplementary information. The reports are available from the City of Okeechobee, Florida, 55 S.E.
Third Avenue, Okeechobee, Florida 34974.
At September 30, 2023, the Police Officers' plan included 12 retirees or beneficiaries either receiving
or entitled to receive benefits, plus 3 survivor beneficiaries. The Police Officers' plan also includes 2
terminated members with vested benefits, and has 2 DROP participants. There are 21 active current
employees of which 6 are vested and 15 are non -vested.
At September 30, 2023, the Firefighters' plan included 8 retirees receiving or entitled to receive
benefits, plus 1 beneficiary receiving benefits. The Plan has no DROP participants. There are no active
current employees who are vested. The Plan has 4 terminated members with vested benefits.
Funding Policies — The contribution requirements of plan members and the City are established and
may be amended by City ordinance. Plan members are required to contribute 5% of their annual
covered salary for the Police Officers' and Firefighters' Municipal Trust Funds. The City is required to
contribute an amount equal to the difference in each year between the total aggregate member
contributions for the year, plus state contributions for such year, and the normal cost for the year, as
shown by the most recent actuarial valuation of the plan; the current contribution rate as a
percentage of covered payroll is 3.0% for the Police Officers' plan and 79.4% for the Firefighters' plan.
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0
City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (Continued)
The City recognized as revenues and expenditures on -behalf payments relating to pension
contributions for its public safety employees that the State of Florida paid to the Police Officers' and
Firefighters' Plans in the amounts of $103,937 and $77,569, respectively. These contributions are
funded by an excise tax upon certain casualty insurance companies on their gross receipts of
premiums from policy holders.
The City and employees contributions for the year ended September 30, 2023, are as follows:
City Employees
Police Officers' $ 38,602 $ 63,770
Firefighters' $ - $ 13,566
Plan Investment Policies and Allocation of Plan Investments - Florida statutes and the plan investment
policy authorize the Trustees to invest funds in various investments. The general investment objective
of the fund is to preserve the purchasing power of the fund's assets and earn a reasonable rate of
return (after inflation) over the long term while minimizing, to the extent reasonable, the short-term
volatility of returns. Best estimates of arithmetic real rates of return for each major asset class
included in the pension plan's target asset allocation as of September 30, 2023, and the current target
and actual allocation of these investments at market, per the performance analysis report, is as
follows as of September 30, 2023:
Police Officers'
Actual Target
Investments Percent Percent
Domestic Equity 49.1% 50.0%
International Equity 10.2% 10.0%
Fixed Income 39.9% 40.0%
Cash Equivalents 0.8% 0.0%
Total 100.0% 100.0%
Firefighters'
Investments
Actual
Percent
Target
Percent
Domestic Equity
44.3%
50.0%
International Equity
15.1%
10.0%
Fixed Income
39.2%
40.0%
Cash Equivalents
1.4%
0.0%
Total
100.0%
100.0%
-43-
•
Note 4: OTHER INFORMATION (Continued)
P
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (Continued)
Money -Weighted Rate of Return - For the year ended September 30, 2023, the annual money -
weighted rate of return on the Police Officers' pension plan investments was 12.69% and on the
Firefighters' pension plan investments was 13.22%. The money -weighted rate of return expresses
investment performance, net of plan investment expenses, as adjusted for the changing amounts
actually invested on a monthly basis.
Net Pension Liability (Asset) — The City's net pension liability (asset) was measured as of September 30,
2022, and the total pension liability (asset) used to calculate net pension liability (asset) was
determined by an actuarial valuation as of September 30, 2023 for the Police Officers' and
Firefighters' pension plan.
Total Pension Liability
Police Officers'
Firefighters'
Service cost
$ 300,327 $
18,570
Interest
642,970
225,789
Difference between actual & expected experience
(69,960)
(254,300)
Benefit payments, including refunds
(377,386)
(548,385)
Net change in total pension liability
495,951
(558,326)
Total pension liability- beginning
9,333,222
4,278,589
Total pension liability - ending (a)
$ 9,829,173 $
3,720,263
Plan Fiduciary Net Position
Police Officers'
Firefighters'
Contributions - employer (from City)
$ 70,877 $
569
Contributions - employer (from State)
89,462
39,083
Contributions - members
54,837
249
Net investment income
(2,340,675)
(1,079,229)
Benefit payments, including refunds
(377,386)
(548,385)
Administrative expense
(55,854)
(44,389)
Net change in plan fiduciary net position
(2,558,739)
(1,632,102)
Plan fiduciary net position - beginning
12,045,012
5,639,241
Plan fiduciary net position - ending (b)
9,486,273
4,007,139
Net pension liability (asset) - Ending (a) - (b) $ 342,900 $ (286,876)
Plan fiduciary net position as a percentage
or Total Pension Liability (Asset)
-44-
96.51% 107.71%
0
Note 4: OTHER INFORMATION (Continued)
•
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (Continued)
For the year ending September 30, 2023, the City recognized a pension expense (income) of $292,254
for the Police Officers' Plan and $(285,573) for the Firefighters' Plan. On September 30, 2023, the
Sponsor reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Police Officers'
Deferred Deferred
Outflow of Inflow of
Resources Resources
Difference between expected and actual experience $ - $ 184,973
Change in assumptions - 118,110
Net difference between projected and actual earnings on
pension plan investments 1,648,432 -
Contributions subsequent to the measurement date 142,539 -
Total $ 1,790,971 $ 303,083
Firefighters'
Deferred outflows relating to subsequent contributions of $142,539 and $77,569 for the Police
Officers' and Firefighters' Pension Plans, respectively will be recognized as a reduction in net pension
liability in the fiscal year ending September 30, 2023.
-45-
Deferred
Outflow of
Resources
Deferred
Inflow of
Resources
Difference between expected and actual experience
$ 5,125 $
284,678
Change in assumptions
613
62,269
Net difference between projected and actual earnings on
pension plan investments
700,601
-
Contributions subsequent to the measurement date
77,569
-
Tota I
$ 783,908 $
346,947
Deferred outflows relating to subsequent contributions of $142,539 and $77,569 for the Police
Officers' and Firefighters' Pension Plans, respectively will be recognized as a reduction in net pension
liability in the fiscal year ending September 30, 2023.
-45-
CJ
City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pension will be recognized in pension expense as follows:
Police Officers'
Year ended September 30:
2024
$ 246,765
2025
204,844
2026
320,082
2027
583,308
2028
(9,650)
Total
$ 1,345,349
Firefighters'
Year ended September 30:
2024
$ 2,718
2025
36,353
2026
104,649
2027
241,182
2028
(25,510)
Total $ 359,392
Net Pension Liability of the City of Okeechobee — The components of the net pension liability of the
City at September 30, 2023, as follows, is presented in accordance with GASB Statement No. 67, while
the net pensions recognized by the City in the current financial statements represents the net pension
liability measured as of September 30, 2022 which is allowed by GASB Statement No. 68.
Police Fire
Total pension liability $ 9,528,258 $ 3,414,437
Plan fiduciary net position (10,176,710) (4,307,710)
City's net pension liability (asset) $ (648,452) $ (893,273)
Plan fiduciary net position as a
percentage of total pension liability (asset) 106.81% 126.16%
Expected Long -Term Rate of Return - The long-term expected rate of return on pension investments
was determined using a building-block method in which best estimate ranges of future real rates of
return (expected returns, net of pension plan investment expenses 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 (2.5%) to arrive at a 5.6% projected long-term real rate of return net of
investment expenses.
-46-
u
Note 4: OTHER INFORMATION (Continued)
•
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Best estimates of arithmetic real rates of return for each major asset class included in the pension
plan's target asset allocation as of September 30, 2023 are summarized as follows:
Police Officers'
Tota 1 100.0%
*Net of long-term inflation assumption of 2.5%
Firefighters'
Percent
Long -Term
Investments
Target
Rate of Return*
Domestic Equity
50.0%
7.5%
International Equity
10.0%
8.5%
Fixed Income
40.0%
2.5%
Real Estate
0.0%
4.5%
Cash Equivalents
0.0%
0.0%
Tota 1 100.0%
*Net of long-term inflation assumption of 2.5%
Firefighters'
Total 100.0%
*Net of long-term inflation assumption of 2.5%
Discount Rate - The projection of cash flows used to determine the discount rate assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates and
the member rate. Based on those assumptions, the pension plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in Discount Rate - The following presents the pension
liability of the City, calculated using the discount rate of 7%, as well as what the City's net pension
liability would be if it were calculated using a discount rate that is 1% lower (6%) or 1% higher (8%)
than the current rate for Police Officers' Pension:
-47-
Percent
Long -Term
Investments
Target
Rate of Return*
Domestic Equity
50.0%
7.5%
International Equity
10.0%
8.5%
Domestic Fixed Income
40.0%
2.5%
Global Fixed Income
0.0%
3.5%
Cash Equivalents
0.0%
0.0%
Total 100.0%
*Net of long-term inflation assumption of 2.5%
Discount Rate - The projection of cash flows used to determine the discount rate assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates and
the member rate. Based on those assumptions, the pension plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in Discount Rate - The following presents the pension
liability of the City, calculated using the discount rate of 7%, as well as what the City's net pension
liability would be if it were calculated using a discount rate that is 1% lower (6%) or 1% higher (8%)
than the current rate for Police Officers' Pension:
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0
Note 4: OTHER INFORMATION (Continued)
•
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Police Officers'
1% Decrease Current Discount 1% Increase
6.00% 7.00% 8.00%
Sponsor's net pension liability (asset) $ (459,326) $ (648,452) $ (1,573,792)
The following presents the pension liability of the City, calculated using the discount rate of 6%, as
well as what the City's net pension liability would be if it were calculated using a discount rate that is
1% lower (5%) or 1% higher (7%) than the current rate for Firefighters' Pension:
Firefighters'
1% Decrease Current Discount 1% Increase
5.00% 6.00% 7.00%
Sponsor's net pension liability (asset) $ (455,287) $ (893,273) $ (1,250,725)
The Employees' Retirement System (Fund) of the City of Okeechobee, Florida
Plan Description - Prior to October 1, 2016, both the Okeechobee Utility Authority (OUA) and the
general employees of the City of Okeechobee, Florida were covered by the City of Okeechobee and
Okeechobee Utility Authority Employee Retirement System. The plan was previously treated as a cost
sharing multiple -employer plan when combined with the Okeechobee Utility Authority. Effective
October 1, 2016, the City contributes to the Employees' Retirement System (Fund) of the City of
Okeechobee, Florida (the "System"), a single employer, defined benefit contributory pension trust
administered by the System's Board of Trustees. Substantially all of the City's regular employees
participate in this public employee retirement system. The System was established by City
Ordinance No. 655, as amended and restated by City Ordinance No. 686. The System provides
retirement, disability and death benefits to plan members and their beneficiaries. The Board of
Trustees is authorized by City Ordinance No. 686 to establish and amend all plan provisions. The
System issues a publicly available financial report that includes financial statements and required
supplementary information. That report is available from the City of Okeechobee, Florida, 55 S.E.
Third Avenue, Okeechobee, Florida 34974.
At September 30, 2023, the Plan included 20 retirees and/or beneficiaries currently receiving benefits
plus 5 terminated employees entitled to benefits but not yet receiving them, and 3 DROP participant.
There are 30 active current employees in the Plan, of which 10 are vested and 20 are non -vested.
Funding Policy - The contribution requirements of the plan members and the City are established and
may be amended by City ordinance. Plan members are required to contribute 6% of their covered
annual salary. The City is required to contribute at an actuarially determined rate; the current rate is
3.1% of covered payroll. The City's contributions for the year ended September 30, 2023, was
$34,955, which agreed to the actuarially required contribution for the year of $34,955.
-48-
•
Note 4: OTHER INFORMATION (Continued)
•
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Net Pension Liability (Asset) - For the year ending September 30, 2023, the City reported an asset of
$(113,794) for the Pension Plan's net pension (asset). The net pension liability (asset) was measured
as of September 30, 2022, and the total pension liability (asset) used to calculate the net pension
liability (asset) was determined by an actuarial valuation as of October 1, 2023.
General
Total Pension Liability
Service cost
Interest
$ 185,154
333,968
Difference between actual & expected experience
(170,274)
Benefit payments, including refunds
(313,369)
Net change in total pension liability
35,479
Total pension liability - beginning
4,912,707
Total pension liability -ending (a)
4,948,186
Plan Fiduciary Net Position
Contributions - employer (from City)
Contributions - members
85,670
69,461
Net investment income
(1,219,252)
Benefit payments, including refunds
(313,369)
Administrative expense
(42,586)
Net change in plan fiduciary net position
(1,420,076)
Plan fiduciary net position - beginning
6,482,056
Plan fiduciary net position - ending (b)
5,061,980
Net pension liability (asset) - Ending (a) - (b) $ (113,794)
Plan fiduciary net position as a percentage
of Total Pension Liability (Asset) 102.30%
The City and employees contributions for the year ended September 30, 2023, are as follows.
City Employees
General $ 34,955 $ 67,655
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•
Note 4: OTHER INFORMATION (Continued)
•
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Money -Weighted Rate of Return - The annual money -weighted rate of return on plan investments
(calculated as the internal rate of return on plan investments, net of plan investment expense) was
12.37% for the year ended September 30, 2023. The money -weighted rate of return expresses
investment performance, net of plan investment expenses, as adjusted for the changing amounts
actually invested on a monthly basis.
For the year ending September 30, 2023 the City recognized a pension expense of $86,101 for the
General Employees' Retirement Plan. On September 30, 2023, the Sponsor reported deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
General
Deferred Deferred
Outflow of I nflow of
Resources Resources
Difference between expected and actual experience $ 4,578 $ 177,308
Change in assumptions - 19,671
Net difference between projected and actual earnings on
pension plan investments 834,073 -
Contributions subsequent to the measurement date 34,955 -
Total $ 873,606 $ 196,979
Deferred outflows relating to subsequent contributions of $34,955 for the General Pension Plan will
be recognized as a reduction in net pension liability in the fiscal year ending September 30, 2023.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pension will be recognized in pension expense as follows:
General
Year ended September 30:
2024
$ 108,491
2025
71,929
2026
150,260
2027
310,992
Total $ 641,672
Net Pension Liability of the City of Okeechobee — The components of the net pension liability of the
City at September 30, 2023, as follows, is presented in accordance with GASB Statement No. 67, while
the net pensions recognized by the City in the current financial statements represents the net pension
liability measured as of September 30, 2022 which is allowed by GASB Statement No. 68.
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•
City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (Continued)
General
Total pension liability $ 4,893,392
Plan fiduciary net position (5,406,391)
City's net pension liability (asset) $ (512,999)
Plan fiduciary net position as a
percentage of total pension liability (asset) 110.48%
Plan Investment Policies and Allocation of Plan Investments - Florida statutes and the plan
investment policy authorize the Trustees to invest funds in various investments. The general
investment objective of the fund is to preserve the purchasing power of the fund's assets and earn
reasonable rate of return (after inflation) over the long term while minimizing, to the extent
reasonable, the short-term volatility of returns.
General
Percent Percent
Investments
Actual
Target
Domestic Equity
49.1%
50.0%
International Equity
10.2%
10.0%
Fixed Income
39.9%
40.0%
Cash Equivalents
0.8%
0.0%
Total
100.0%
100.0%
Expected Long -Term Rate of Return - The long term expected rate of return on pension plan
investments was determined using a building-block method in which best estimate ranges of
expected future real rates of return (expected returns, net of pension plan investment expenses
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. Best estimates of arithmetic
real rates of return for each major asset class included in the pension plan's target asset allocation
and actual allocation as of September 30, 2023 are summarized in the following table:
General
Percent Long -Term
Investments Target Rate of Return*
Domestic Equity
50.0%
7.5%
International Equity
10.0%
8.5%
Fixed Income
40.0%
2.5%
Cash Equivalents
0.0%
0.0%
Tota 1 100.0%
*Net of long-term inflation assumption of 2.5%
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U
Note 4: OTHER INFORMATION (Continued)
u
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Discount Rate - The discount rate used to measure the total pension liability was 6.75%. The
Pension Plan's fiduciary net position was projected to be available to make all projected future
benefit payments of the current plan members. Therefore, the long-term expected rate of return
on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in Discount Rate
— The following represents the City's proportionate share of the net pension liability calculated
using the discount rate of 6.75% as well as what the City's proportionate share of the net pension
liability would be if it was calculated using a discount rate that is one percentage point lower
(5.75%) or one percentage point higher (7.75%) than the current rate:
General
1% Decrease Current Discount 1% Increase
5.75% 6.75% 7.75%
Sponsor's net pension liability (asset) $ 16,001 $ (512,999) $ (959,220)
Actuarial Assumptions — The total pension liability was determined by an actuarial valuation as of
October 1, 2023 using the following actuarial assumptions applied to all measurement periods.
Actuarial Cost Method
Inflation
Salary Increases
Investment Rate of
Return
Retirement Age
Cost of Living
Fire Police General
Aggregate
2.50%
7.00%
6.00%
100% when first eligible for
Normal Retirement or
DROP entry
.05% every odd year
Aggregate
2.50%
6.00%
7.00%
100% when first eligible for
Normal Retirement or
DROP entry
.05% every odd year
-52-
Aggregate
2.50%
6.00%
6.75%
100% when first eligible for
Normal Retirement or DROP
entry
None
•
Note 4: OTHER INFORMATION (Continued)
0
City of Okeechobee, Florida
Notes to Financial Statements
B. RETIREMENT COMMITMENTS — DEFINED BENEFIT PLANS (Continued)
Fire Police General
For healthy participants
For healthy participants
For healthy participants
during employment, PUB-
during employment, PUB-
during employment, PUB -
2010 Headcount Weighted
2010 Headcount Weighted
2010 Headcount Weighted
Safety Employee Female
Safety Employee Female
General Below Median
Mortality Table and Safety
Mortality Table and Safety
Employee Mortality Table,
Below Median Employee
Below Median Employee
separate rates for males and
Male Mortality Table, both
Male Mortality Table, both
females, set back 1 year for
set forward 1 year, with
set forward 1 year, with
males, with fully generational
fully generational mortality
fully generational mortality
mortality improvements
improvements projected to
improvements projected to
projected to each future
each future decrement date
each future decrement date
decrement date with Scale
with Scale MP -2018. For
with Scale MP -2018. For
MP -2018. For healthy
healthy participants
healthy participants
participants post
postemployment, PUB -2010
postemployment, PUB -2010
employment, PUB -2010
Headcount Weighted Safety
Headcount Weighted Safety
Headcount Weighted
Healthy Retiree Female
Healthy Retiree Female
General Below Median
Mortality Mortality Table and Safety
Mortality Table and Safety
Healthy Retiree Mortality
Below Median Healthy
Below Median Healthy
Table, separate rates for
Retiree Male Mortality
Retiree Male Mortality
males and females, set back
Table, both set forward 1
Table, both set forward 1
1 year for males, with fully
year, with fully generational
year, with fully generational
generational mortality
mortality improvements
mortality improvements
improvements projected to
projected to each future
projected to each future
each future decrement date
decrement date with Scale
decrement date with Scale
with Scale MP -2018. For
MP -2018. For disabled
MP -2018. For disabled
disabled participants, PUB -
participants, 80% PUB -2010
participants, 80% PUB -2010
2010 Headcount Weighted
Headcount Weighted
Headcount Weighted
General Disabled Retiree
General Disabled Retiree
General Disabled Retiree
Mortality Table, separate
Mortality Table/20% PUB-
Mortality Table/20% PUB-
rates for males and females,
2010 Headcount Weighted
2010 Headcount Weighted
both set forward 3 years,
Safety Disabled Retiree
Safety Disabled Retiree
without projected mortality
Mortality Table, separate
Mortality Table, separate
improvements.
rates for males and females,
rates for males and females,
without projected mortality
without projected mortality
improvements.
improvements.
167%2
City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
B. RETIREMENT COMMITMENTS— DEFINED BENEFIT PLANS (Continued)
Pension trust funds fiduciary net position activity as of September 30, 2023 was as follows:
General
Firefighters' Police Officers' Employees' Total Pension
Pension Pension Pension Trust Funds
ASSETS
Cash equivalents $ 60,252 $ 133,189 $ 43,131 $ 236,572
Investments:
Mutual funds 4,186,793 9,941,412 5,362,747 19,490,952
Receivables 77,569 113,849 9,265 200,683
Prepaid expenses - - 1,478 1,478
Total assets 4,324,614 10,188,450 5,416,621 19,929,685
LIABILITIES
Accounts payable 16,903 8,970 8,237 34,110
Total liabilities 16,903 8,970 8,237 34,110
NET POSITION
Restricted for pension benefits $ 4,307,711 $ 10,179,480 $ 5,408,384 $ 19,895,575
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City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
B. RETIREMENT COMMITMENTS- DEFINED BENEFIT PLANS (Continued)
Pension trust funds increase in fiduciary net position activity as of September 30, 2023 was as
follows:
-55-
General
Firefighters'
Police Officers'
Employees'
Total Pension
Pension
Pension
Pension
Trust Funds
ADDITIONS
Contributions
State
$ 77,569
$ 103,937 $
- $
181,506
City
-
38,602
34,955
73,557
Employees
13,566
63,770
67,655
144,991
Total contributions
91,135
206,309
102,610
400,054
Investment earnings:
Net depreciation in the fair value
of investments
387,784
877,786
460,665
1,726,235
Interest and dividends
138,594
321,488
161,920
622,002
Total investment earnings
526,378
1,199,274
622,585
2,348,237
Less investment expenses
(22,750)
(23,150)
(21,250)
(67,150)
Net investment gain
503,628
1,176,124
601,335
2,281,087
Total additions
594,763
1,382,433
703,945
2,681,141
DEDUCTIONS
Benefits paid to participants
231,868
397,518
237,055
866,441
Refunds on termination
-
-
20,907
20,907
DROP payments
-
233,034
35,204
268,238
Administrative expenses
62,325
58,674
64,376
185,375
Total deductions
294,193
689,226
357,542
1,340,961
Change in net position
300,570
693,207
346,403
1,340,180
Net position, beginning of year
4,007,141
9,486,273
5,061,981
18,555,395
Net position, end of year
$ 4,307,711
$ 10,179,480 $
5,408,384 $
19,895,575
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0
Note 4: OTHER INFORMATION (Continued)
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION
•
City of Okeechobee, Florida
Notes to Financial Statements
Plan description. The City of Okeechobee, Florida administers a single -employer defined benefit
healthcare plan (the "Plan") that provides medical insurance to its employees and their eligible
dependents. Pursuant to Section 112.0801 Florida Statutes, the City is required to provide eligible
retirees (as defined in the City's pension plans) the opportunity to participate in this Plan at the same
cost that is applicable to active employees. Benefit provisions for the Plan were established by City
Council on January 7, 1991 and may only be amended by City Council. The City has not established a
trust or agency fund for the Plan. The City does not issue stand-alone financial statements for this
Plan. All financial information related to the Plan is accounted for in the City's basic financial
statements.
Employees and their dependents may elect to remain in the Plan upon retirement up to age 65. After
age 65 the City's insurance coverage becomes secondary to the retiree's Medicare insurance. The Plan
has 2 retirees receiving benefits and has a total of 53 active participants and dependents.
Funding policy. The City is funding the plan on a pay-as-you-go basis. Employees and their dependents
are required to pay 100% of the insurance premiums charged by the carrier. There is an implied
subsidy in the insurance premiums for these employees because the premium charged for retirees is
the same as the premium charged for active employees, who are younger than retirees on average.
Contributions of plan members for the year ended September 30, 2023 totaled $1,780.
Plan membership. Plan membership as of September 30, 2021 (the latest valuation date) was:
Number of covered
individuals
Inactive members currently receiving benefits 2
Inactive members entitled to but not yet receiving benefits -
Active members 53
Total 55
The OPEB liability was determined based on the following assumptions and information:
Employer's reporting date: September 30, 2023
Measurement date: September 30, 2022
Valuation date: September 30, 2021
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n
City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (Continued)
Actuarial assumptions and other inputs. On the September 30, 2022 measurement date, the
actuarial assumptions and other inputs applied include the following:
Inflation
2.25 percent
Salary increases
6.00 percent
Discount rate
4.40 percent
Healthcare cost trend rates
6.00 percent for FY beginning 2022, 5.75 percent for
Balance as of September 30, 2022
FY beginning 2023 and then gradually decreasing to
Changes for the year:
an ultimate trend of 3.75 percent
Mortality
Mortality tables used in the July 1, 2021 actuarial
1 nterest
valuation of the Florida Retirement System for
Changes in assumptions and other inputs
non -K-12 Instructional Regular Class members.
Benefit payments
These rates were taken from adjusted PUB -2010
Net changes
mortality tables published by the Society of Actuaries
Balance as of September 30, 2023
with generational mortality improvements using Scale
MP -2018. Adjustments to referenced tables are based
on the results of a statewide experience study
covering the period 2013 through 2018.
Changes
Changes in assumptions and other inputs include the
change in the discount rate from 2.19% as of the
beginning of the measurement period to 4.40% as of
September 30, 2022. This change is reflected in the
Schedule of Changes in Total OPEB Liability.
There were no benefit changes during the year.
Change in Total OPEB Liability
-57-
Increase (Decrease)
Tota I OPEB
Liability
(a)
Balance as of September 30, 2022
$ 258,540
Changes for the year:
Service cost
22,010
1 nterest
5,720
Changes in assumptions and other inputs
(30,595)
Benefit payments
(38,682)
Net changes
(41,547)
Balance as of September 30, 2023
$ 216,993
-57-
•
City of Okeechobee, Florida
Notes to Financial Statements
Note 4: OTHER INFORMATION (Continued)
C. POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (Continued)
Sensitivity of the Total OPEB Liability — The following table represents the City's total OPEB liability
calculated using the discount rate of 4.40%, as well as what the City's net OPEB liability would be if it
were calculated using a discount rate that is one percentage point lower (3.40%) or one percentage
point higher (5.40%) than the current rate:
Total OPEB Liability
Current
1% Decrease Discount Rate 1% Increase
(3.40%) (4.40%) (5.40%)
231,708 $ 216,993 $ 202,335
The following table represents the City's total OPEB liability calculated using the ultimate health care
cost trend rate of 3.75%, as well as what the City's total OPEB liability would be if it were calculated
using a health care cost trend that is one percentage point lower (2.75%) or one percentage point
higher (4.75%) than the current rate:
1% Decrease Ultimate Trend 1% Increase
(2.75%) (3.75%) (4.75%)
Total OPEB Liability $ 194,161 $ 216,993 $ 244,453
D. ASSET RETIREMENT OBLIGATIONS
Asset retirement obligations generally apply to legal obligations associated with the retirement of a
tangible long-lived asset that result from the acquisition, construction, or development and the
normal operation of a long-lived asset. The City assesses asset retirement obligations on a periodic
basis. If a reasonable estimate of fair value can be made, the fair value of a liability for an asset
retirement obligation is recognized in the period in which it is incurred or a change in estimate occurs.
The City has an above ground fuel storage tank which is regulated by Florida Administrative Code
(FAC) 62-762, and requires certain activities if use of the fuel storage tank is discontinued. The City has
determined it cannot reasonably estimate the fair value of the liability for disposal of this item and,
accordingly, has not recorded an asset retirement obligation for this matter.
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C'
City of Okeechobee, Florida
Notes to Financial Statements
Note 5: SUBSEQUENT EVENTS
Management evaluated all events or transactions that occurred after September 30, 2023 through
April 8, 2024, the date the current year's financial statements were available to be issued. The
following events occurred:
• Approval to sell two parcels of land for $420,000 and $140,000
• Approval of police/fire pension plan merger
• Grant award of $1,200,000 from State of Florida Department of Commerce
• Grant award of $334,951 is extended from FDOT Small County Outreach Program Grant
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60-
•
•
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN
MANAGEMENT'S DISCUSSION AND ANALYSIS
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10-M
City of Okeechobee, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund
Actual Variance with
Original Final (on Budgetary Final Budget
Year ended September 30, 2023 Budget Budget Basis) Positive (Negative)
Revenues
(over) expenditures
Taxes
$ 3,311,716 $
3,624,900 $
3,665,950 $
41,050
Intergovernmental
2,907,051
3,097,000
4,530,244
1,433,244
Charges for services
706,700
794,500
805,484
10,984
Permits and fees
681,600
866,800
938,499
71,699
Fines and forfeitures
40,200
53,290
60,883
7,593
Investment earnings
11,200
434,300
528,394
94,094
Miscellaneous
4,600
75,600
51,684
(23,916)
Total revenues
7,663,067
8,946,390
10,581,138
1,634,748
Expenditures
to GAAP basis
Current:
Current year encumbrances
357,631
General government:
Prior year encumbrances
(295,742)
Legislative
182,766
154,266
150,914
3,352
Executive
265,142
247,760
228,738
19,022
City clerk
323,086
302,500
295,716
6,784
Financial services
343,600
321,270
305,373
15,897
Legal council
188,900
114,100
113,280
820
General services
585,637
537,400
501,641
35,759
Total general government
1,889,131
1,677,296
1,595,662
81,634
Public safety:
Fire
706,214
735,600
729,347
6,253
Police
3,220,258
3,165,800
3,064,417
101,383
Total public safety
3,926,472
3,901,400
3,793,764
107,636
Transportation
1,637,263
1,573,175
1,540,208
32,967
Physical environment
1,156,251
770,800
576,785
194,015
Capital outlay
857,000
699,600
687,405
12,195
Total expenditures
9,466,117
8,622,271
8,193,824
428,447
Excess (deficiency) of revenues under
(over) expenditures
(1,803,050)
324,119 2,387,314
2,063,195
Other financing sources (uses)
Operating transfers out
- (1,377,225)
(1,377,225)
Net other financing sources (uses)
-
- (1,377,225)
(1,377,225)
Excess (deficiency) of revenues and other
financing sources over (under)
expenditures and other financing
sources (uses)
(1,803,050)
324,119 1,010,089
685,970
Fund balances, beginning of year
11,102,972
11,102,972 11,102,972
-
Fund balances, end of year
$ 9,299,922 $
11,427,091 12,113,061 $
685,970
Reconciliation of budgetary
to GAAP basis
Current year encumbrances
357,631
Prior year encumbrances
(295,742)
Fund balance on GAAP basis
$ 12,174,950
The accompanying notes to required supplementary information are an integral part of this schedule.
-63-
City of Okeechobee, Florida
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual — General Fund
A. BUDGETARY INFORMATION
Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles
for all governmental fund. The Community Development Capital Projects fund is budgeted but the
budget to actual is not required to be presented for the capital projects fund. All annual
appropriations lapse at fiscal year-end.
The City administrator may make transfers of appropriations within a department as long as the total
budget of the department is not increased. Transfers of appropriations between departments
required the approval of the council. The legal level of budgetary control (i.e., the level at which
expenditures may not legally exceed appropriations) is the department level. The council made
certain supplemental appropriations during the year.
Encumbrances accounting is employed in governmental funds. Encumbrances (e.g., purchase orders,
contracts) outstanding at year-end are reported as restricted or assigned fund balances and do not
constitute expenditures or liabilities because the commitments will be re -appropriated and honored
during the subsequent year.
The accompanying notes to required supplementary information are an integral part of this schedule.
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City of Okeechobee, Florida
Required Pension Supplementary Information
Plan Fiduciary Net Position
Contributions - employer(from City)
Police Officers'
70,877
100,195
126,811
Contributions - employer (from State)
2023*
2022*
2021*
2020*
Total Pension Liability
62,446
54,837
56,261
53,051
Service cost
$ 274,718 $
300,327 $
277,048 $
279,173
Interest
645,176
642,970
635,386
615,045
Difference between actual and
-
(5,368)
(6,376)
(15,462)
expected experience
(589,604)
(69,960)
(48,536)
(76,855)
Assumption changes
-
-
(3,248)
(211,356)
Benefit payments
(631,205)
(377,386)
(630,299)
(557,786)
Refunds
9,486,273
-
-
-
Net change in total pension liability
(300,915)
495,951
233,599
48,221
Total pension liability -beginning
9,829,173
9,333,222
9,099,623
9,051,402
Total pension liability -ending (a)
9,528,258
9,829,173
9,333,222
9,099,623
Plan Fiduciary Net Position
Contributions - employer(from City)
37,808
70,877
100,195
126,811
Contributions - employer (from State)
103,937
89,462
86,979
90,650
Contributions -members
62,446
54,837
56,261
53,051
Net investment income (loss)
1,176,125:_...-
(2,340,675)
1,980,592
1,170,587
Benefit payments
(631,205)
(372,018)
(623,923)
(542,324)
Refunds
-
(5,368)
(6,376)
(15,462)
Administrative expense
(58,674)
(55,854)
(41,277)
(41,667)
Other
-
-
(3,248)
(2,155)
Net change in plan fiduciary net position
690,437
(2,558,739)
1,549,203
839,491
Plan fiduciary net position - beginning
9,486,273
12,045,012
10,495,809
9,656,318
Plan fiduciary net position - ending (b)
10,176,710
9,486,273
12,045,012
10,495,809
Net pension liability (asset) - Ending (a) - (b)
$ (648,452) $
342,900
$ (2,711,790) $
(1,396,186) F
Plan fiduciary net position as a percentage
of Total Pension Liability
106.81%
96.51%
129.06%
115.34%
Covered payroll**
$ 1,248,920 $
1,097,275
$ 1,125,784 $
1,061,193
Net pension liability (asset) as a percentage
of covered payroll
-51.92%
31.25%
-240.88%
-131.57%
Note:This schedule is presented to illustratethe requirementto show information for 10 years
* -The net pension liability (asset) recognized by the City in the currentyear financial statements represents the net position
liability as of the immediately preceding year-end, which is allowed and became effective upon implementation of GASB 68.
** Covered payroll was calculated by dividingthe total member contributions for the fiscal year, net of any known buyback
contributions, by the member contribution rate of 5%.
Assumption changes:
Effective 10/1/2021, the valuation will use the mortality tables from the most recent FRS valuation as of 7/1/2021.
Effective 10/1/2016,the mortality rates werechanged fromthe RP -2000 Combined Healthy Participant Mortality Tables, using
projection scale AAto the mortality rates used by the Florida Retirement System (FRS) for Special Risk Class members. This
change was made in compliance with Florida House Bill 1309, which requires all public pension plans in Florida to usethe
same mortality rates used in either of the lasttwo actuarial valuation reports of FRS effective no later than 10/1/2016.
- Use of Insurance Tax Premium Revenue (IPTR) received by the State is subjectto the default rules of Senate Bill 172 (codified in
Chapter 2015-39) beginning with the IPTR received for the 2015 calendar year.
I M-19
City of Okeechobee, Florida
Required Pension Supplementary Information
Police Officers'
2019* 2018* 2017 2016 2015 2014
$ 254,066 $
258,622 $
235,345 $
264,445
$ 247,353
$ 251,499
607,391
580,995
573,285
543,946
506,147
479,146
(153,927)
(276,621)
(270,100)
126,875
(219,850)
(784)
-
22,143
-
94,065
-
(502,852)
(281,028)
(255,731)
(468,694)
(203,855)
(201,397)
(12,836)
72,669
-
(25,003)
(321)
(26,953)
191,842
354,637
304,942
441,569
423,539
501,511
8,859,560
8,504,923
8,199,981
7,758,412
7,334,873
6,833,362
9,051,402
8,859,560
8,504,923
8,199,981
7,758,412
7,334,873
130,886
151,492
169,789
147,312
192,581
200,210
90,153
81,690
78,659
73,960
70,807
67,639
50,359
46,212
45,863
45,554
47,740
43,135
330,227
727,699
903,712
607,763
(95,964)
694,790
(502,852)
(281,028)
(255,731)
(468,694)
(203,855)
(201,397)
(12,836)
-
-
(25,003)
(321)
(26,953)
(47,116)
(45,827)
(41,855)
(32,120)
(30,198)
(18,097)
-
-
(3,284)
(6)
3,886
-
38,821
680,238
897,153
348,766
(15,324)
759,327
9,617,497
8,937,259
8,040,106
7,691,340
7,706,664
6,947,337
9,656,318
9,617,497
8,937,259
8,040,106
7,691,340
7,706,664
$ (604,916) $
(757,937) $
(432,336) $
159,875
$ 67,072
$ (371,791)
106.68%
108.56%
105.08%
98.05%
99.14%
105.07%
$ 1,007,180 $
924,250 $
917,260 $
970,646 $
911,189 $
862,700
-60.06%
-82.01%
-47.13%
16.47%
7.36%
-43.10%
-67-
City of Okeechobee, Florida
Required Pension Supplementary Information
Firefighters'
2023* 2022* 2021* 2020*
Total Pension Liability
(305,826)
(558,326)
146,932
Service cost $
- $ 18,570 $
64,244 $
117,980
Interest
199,748 225,789
247,616
275,148
Benefit changes
- -
268,575
(945)
Difference between actual & expected experience
(273,706) (254,300)
(242,201)
(85,233)
Assumption changes
- -
569
(96,526)
Benefit payments
(231,868) (548,385)
(191,302)
(152,193)
Refund
-
Contributions -members
-
Other
-
-
Net investment income (loss)
Net change in total pension liability
(305,826)
(558,326)
146,932
58,231
Total pension liability - beginning
3,720,263
4,278,589
4,131,657
4,073,426
Total pension liability -ending (a)
3,414,437
3,720,263
4,278,589
4,131,657
Plan Fiduciary Net Position
Contributions - employer (from City)
11,909
569
43,576
86,196
Contributions - employer(from State)
77,569
39,083
45,578
52,670
Contributions -members
-
249
18,140
20,552
Net investment income (loss)
503,627
(1,079,229)
906,378
507,378
Benefit payments
(231,868)
(548,385)
(150,688)
(150,688)
Refunds
-
-
(40,614)
(1,505)
Administrative expense
(62,323)
(44,389)
(44,943)
(40,275)
Other
1,657
-
-
652
Net change in plan fiduciary net position 300,571 (1,632,102) 777,427 474,980
Plan fiduciary net position - beginning 4,007,139 5,639,241 4,861,814 4,386,834
Plan fiduciary net position - ending (b) 4,307,710 4,007,139 5,639,241 4,861,814
Net pension liability (asset) - Ending (a) - (b) $ (893,273) $ (286,876) $ (1,360,652) $ (730,157)
Plan fiduciary net position as a percentage
of Total Pension Liability 126.16% 107.71% 131.80% 117.67%
Covered payroll** - 4,990 367,446 411,033
Net pension liability (asset) as a percentage
of covered payroll N/A -5749.02% -370.30% -177.64%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
* -The net pension liability (asset) recognized by the City in the current year financial statements represents the net position
liability as of the immediately preceding year-end, which is allowed and became effective upon implementation of GASB 68.
** Covered payroll was calculated by dividing the total member contributions for the fiscal year, net of any known buyback
contributions, by the member contribution rate of 5%.
Assumption changes:
Effective 10/1/2021, the va I uati on will use the mortality tables from the most recent FRS valuation as of 7/1/2021.
Effective 10/1/2016, the mortality rates were changed from the RP -2000 Combined Healthy Participant Mortality Tables, using
projection scale AAto the mortality rates used by the Florida Retirement System (FRS) for Special Risk Class members. This
change was made in compliance with Florida House Bill 1309, which requires all public pension plans in Florida to use the
same mortality rates used in either of the lasttwo actuarial valuation reports of FRS effective no later than 10/1/2016.
- Use of Insurance Tax Premium Revenue (IPTR) received by the State is subject to the default rules of Senate Bill 172 (codified in
Chapter 2015-39) beginning with the I PTR received for the 2015 calendar year.
City of Okeechobee, Florida
Required Pension Supplementary Information
Firefighters'
2019*
2018*
2017
2016
2015
2014
$ 145,856 $
136,825 $
156,989 $
156,107
$ 144,773 $
130,539
271,341
257,407
255,218
235,684
213,154
196,106
(132,896)
(162,443)
(91,659)
56,393
(19,771)
(741)
-
-
(13,449)
-
49,797
-
(141,381)
(107,105)
(106,572)
(102,590)
(96,939)
(142,060)
(9,052)
(16,027)
(20,437)
-
-
-
-
19,828
-
3,256
-
-
133,868
128,485
180,090
348,850
291,014
183,844
3,939,558
3,811,073
3,630,983
3,282,133
2,991,119
2,807,275
4,073,426
3,939,558
3,811,073
3,630,983
3,282,133
2,991,119
83,988
115,253
107,123
97,709
92,863
82,058
52,810
52,793
50,589
49,889
52,662
53,235
23,945
23,446
25,409
27,433
26,324
23,854
140,894
308,920
404,267
246,381
(44,021)
318,708
(141,381)
(107,105)
(106,572)
(102,590)
(96,939)
(142,060)
(9,052)
(16,027)
(20,437)
-
-
(43,675)
(59,878)
(34,933)
(31,639)
(27,132)
(16,233)
-
-
(6,375)
(1,766)
-
-
107,529
317,402
419,071
285,417
3,757
319,562
4,279,305
3,961,903
3,542,832
3,257,415
3,253,658
2,934,096
4,386,834
4,279,305
3,961,903
3,542,832
3,257,415
3,253,658
$ (313,408) $
(339,747) $
(150,830) $
88,151
$ 24,718
$ (262,539)
107.69%
108.62%
103.96%
97.57%
99.25%
108.78%
478,900 $
468,920 $
508,180 $
563,285
$ 523,119
$ 477,080
-65.44%
-72.45%
-29.68%
15.65%
4.73%
-55.03%
City of Okeechobee, Florida
Required Pension Supplementary Information
General Employees'
2023* 2022* 2021*
Total Pension Liability
34,276
85,670
114,175
Service cost $
162,179 $
185,154 $
207,835
Interest
318,751
333,968
333,141
Benefit changes
-
-
-
Difference between actual & expected experience
(291,560)
(170,274)
242
Assumption changes
49,002
-
-
Benefit payments
(293,166)
(218,611)
(354,969)
Refunds
-
(94,758)
-
Other***
-
-
-
Net change in total pension liability (54,794) 35,479 186,249
Total pension liability- beginning 4,948,186 4,912,707 4,726,458
Transfer of pension liability for Okeechobee
Utility Authority ***** - - -
Total pension liability - ending (a) 4,893,392 4,948,186 4,912,707
Plan Fiduciary Net Position
Contributions -employer
34,276
85,670
114,175
Contributions - members
66,341
69,461
73,581
Net investment income (loss)
601,336
(1,219,252)
1,108,894
Benefit payments
(293,166)
(218,611)
(354,969)
Refunds
-
(94,758)
-
Administrative expense
(64,376)
(42,586)
(44,184)
Other****
-
-
-
Net change in plan fiduciary net position
344,411
(1,420,076)
897,497
Plan fiduciary net position - beginning
5,061,980
6,482,056
5,584,559
Transfer plan fiduciary net position to Okeechobee
Utility Authority*****
-
-
-
Plan fiduciary net position -ending (b)
5,406,391
5,061,980
6,482,056
Net pension liability (asset) - Ending (a) - (b) $ (512,999) $ (113,794) $ (1,569,349)
Plan fiduciary net position as a percentage
of Total Pension Liability
Covered payroll** $
Net pension liability (asset) as a percentage
of covered payroll
-70-
110.48% 102.30% 131.94%
1,105, 677 $ 1,157, 694 $ 1,229,302
-46.40% -9.83% -127.66%
• s
City of Okeechobee, Florida
Required Pension Supplementary Information
General Employees'
2020* 2019* 2018* 2017 2016
$ 184,223 $
152,255 $
154,529 $
136,373 $
421,387
315,828
295,453
284,633
91,058
763,785
90,157
155,830
394,042
-
-
2,277
(141,938)
20,956
-
(524,849)
(47, 772)
-
-
133,790
-
(201,373)
(259,463)
(164,189)
(336,740)
(331,215)
-
(346)
(16,592)
(17,378)
(18,267)
-
-
-
2,641,019
-
343,340
45,961
279,337
2,648,122
310,841
4,383,118
4,337,157
4,057,820
1,409,698
11,400,112
- - - - (10,301,255)
4,726,458 4,383,118 4,337,157 4,057,820 1,409,698
118,781
115,324
75,793
94,009
446,184
76,693
66,020
60,312
56,405
183,145
603,919
155,830
394,042
477,649
825,935
(178,547)
(259,463)
(164,189)
(336,740)
(331,215)
(22,826)
(346)
(16,592)
(17,378)
(18,267)
(40,906)
(53,249)
(46,328)
(48,490)
(57,186)
(652)
-
-
3,117,018
(2,208)
556,462
24,116
303,038
3,342,473
1,046,388
5,028,097
5,003,981
4,700,943
1,358,470
10,238,992
- - - - (9,926,910)
5,584,559 5,028,097 5,003,981 4,700,943 1,358,470
$ (858,101) $ (644,979) $ (666,824) $ (643,123) $ 51,228
118.16%
114.72%
115.37%
115.85%
96.37%
$ 1,278,231 $
1,100, 333 $
1,005, 204 $
940,083 $
911,233
-67.13%
-58.62%
-66.34%
-68.41%
5.62%
-71-
City of Okeechobee, Florida
Required Pension Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
*The net pension liability (asset) recognized by the City in the current year financial statements represents the net position liability as ofthe
immediately preceding year-end, which is allowed and became effective upon implementation of GASB 68.
"Covered Payroll was calculated by dividing the total member contributions for the fiscal year by theme rn be rcontribution rate of 6%.
***The Total Pension Liability, the Plan Fiduciary Net Position, and the Net Pension Liability as of September 30, 2015 were allocated based on the
portion ofthe Employer's Total Required Contribution (from October 1, 2015 Actuarial Valuation dated April 25, 2016). The October 1, 2015 Valuation
determined the required employer contribution forthe plan yearend September30, 2017.
**** Due to the change in nature ofthe Plan, from a cost sharingto a single employer plan (effective October 1, 2016). Also reflects $59, 910 post -
valuation adjustment to match audited financial statements.
***** Due to the change in nature ofthe Plan, from a cost sharing to a single employer plan (effective October 1, 2016)
Assumption changes:
-Effective 10/1/2021, the valuation will use the mortaIitytables from the most recent FRSvaIuation as of 7/1/2021.
-Effective 10/1/2016, the mortality rates were changed from the RP -2000 Combined Healthy Participant Morta I ityTables, using projection scale AA to
the mortality rates used by the Florida Retirement System (FRS) for Special Risk Class members. This change was made in compliance with Florida
House Bill 1309, which requires all public pension plans in Florida to use the same mortality rates used in either ofthe last two actuarial valuation
reports of FRS effective no Iate rthan 10/1/2016.
-Effective 10/1/2016, OUA employees are covered under a separately established Plan, the Okeechobee Utility Authority Employees' Retirement
System, and are no longer covered underthe City of Okeechobee General Employees' Retirement System.
-72-
s
E
THIS PAGE IS INTENTIONALLY LEFT BLANK.
-73-
Schedule of Contributions
Last Ten Fiscal Years
0
City of Okeechobee, Florida
Required Pension Supplementary Information
Police Officers'
9/30/2023 9/30/2022 9/30/2021 9/30/2020
Actuarially determined contributions $ 121,936 $ 158,267 $ 185,025 $ 192,448
Contributions in relation to the actuarially
determined contributions 141,745 160,339 187,174 217,461
Contribution deficiency (excess) $ (19,809) $ (2,072) $ (2,149) $ (25,013)
Covered payroll* $ 1,248,920 $ 1,097,275 $ 1,125,784 $ 1,061,193
Contributions as a percentage of covered
payroll 11.35% 14.61% 16.63% 20.49%
Firefighters'
Covered payroll*
9/30/2023
9/30/2022
9/30/2021
9/30/2020
Actuarially determined contributions
$ 45,922 $
46,153 $
104,102 $
157,372
Contributions in relation to the actuarially
N/A
794.63%
24.26%
33.78%
determined contributions
89,478
39,652
89,154
138,866
Contribution deficiency (excess)
$ (43,556) $
6,501 $
14,948 $
18,506
Covered payroll*
$ - $
4,990 $
367,446 $
411,033
Contributions as a percentage of covered
payroll
N/A
794.63%
24.26%
33.78%
General Employees'
9/30/2023
9/30/2022
9/30/2021
9/30/2020
Actuarially determined contributions
$ 34,276 $
85,670 $
114,325 $
118,875
Contributions in relation to the actuarially
determined contributions
34,276
85,670
114,175
118,781
Contribution deficiency (excess)
$ - $
- $
150.00 $
94
Covered payroll $ 1,105,677 $ 1,157,694 $ 1,229,302 $ 1,278,231
Contributions as a percentage of covered
payroll 3.10% 7.40% 9.29% 9.29%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
* Based on payroll provided for actuarial valuations; Covered payroll was calculated by dividing the
total member contributions for the fiscal year, net of any known buyback contributions, by the
member contribution rate of 5%.
-74-
0 •
City of Okeechobee, Florida
Required Pension Supplementary Information
Police Officers'
9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
$ 204,611 $ 212,571 $ 251,591 $ 219,093 $ 263,240 $ 267,849
221,039 233,182 248,448 221,272 263,388 267,849
$
(16,428)
$
(20,611)
$
3,143
$
(2,179)
$ (148)
$ -
$
1,007,180
$
924,250
$
917,260
$
970,646
$ 911,189
$ 862,700
21.95% 25.23% 27.09% 22.80% 28.91% 31.05%
Firefighters'
9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 9/30/2014
$ 139,143 $ 167,871 $ 170,269 $ 143,632 $ 138,914 $ 122,212
-75-
136,798
168,046
157,712
147,598
145,525
135,293
$
2,345
$
(175)
$
12,557
$ (3,966)
$
(6,611)
$ (13,081)
$
478,900
28.57%
$
468,920
35.84%
$
508,180 $ 563,285
31.03% 26.20%
General Employees'
$
523,119
27.82%
$ 477,080
28.36%
9/30/2019
9/30/2018
9/30/2017
9/30/2016
9/30/2015
9/30/2014
$
114,875
115,324
$
75,793
75,793
$
42,774
94,009
$ 49,115
110,448
$
379,111
379,111
$ 379,099
379,099
$
(449)
$
-
$
(51,235)
$ (61,333)
$
-
$ -
$
1,100, 333
10.48%
$
1,005,204
7.54%
$
940,083
10.00%
$ 911,233
12.12%
$
3,135, 961
12.09%
$ 2,945,717
12.87%
-75-
City of Okeechobee, Florida
Required Pension Supplementary Information
Police Officers'
9/30/2023 9/30/2022 9/30/2021 9/30/2020
Annual money -weighted rate of return
net of investment expense
12.69% -20.10% 18.76% 11.78%
Fire Fighters'
9/30/2023 9/30/2022 9/30/2021 9/30/2020
Annual money -weighted rate of return
net of investment expense
13.22% -20.53% 19.30% 10.61%
General Employees'
9/30/2023 9/30/2022 9/30/2021 9/30/2020
Annual money -weighted rate of return
net of investment expense
12.37% -19.81% 19.17% 11.37%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
However, until a full 10 -year trend is complied, the City presents information for those years for
which information is available.
-76-
-77-
City of Okeechobee, Florida
Required
Pension
Supplementary Information
Police Officers'
9/30/2019
9/30/2018
9/30/2017 9/30/2016
9/30/2015
9/30/2014
3.10%
8.73%
10.68% 7.59%
-1.65%
9.96%
Fire Fighters'
9/30/2019
9/30/2018
9/30/2017 9/30/2016
9/30/2015
9/30/2014
2.39%
6.11%
10.76% 6.83%
-2.19%
10.43%
General Employees'
9/30/2019
9/30/2018
9/30/2017 9/30/2016
9/30/2015
9/30/2014
2.23%
7.55%
9.78% 7.78%
-1.38%
10.60%
-77-
•
City of Okeechobee, Florida
Schedule of Changes in Total OPEB Liability and Related Ratios
Year Ending September 30,
2023
2022
2021
Total OPEB liability
3.83%
9/30/2020 -
2.75%
Service cost
$ 22,010 $
23,718 $
20,845
Interest
5,720
5,415
5,582
Difference between expected
and actual experience
-
58,331
-
Changes of assumptions or other inputs
(30,595)
(23,809)
4,218
Benefit payments
(38,682)
(12,183)
(11,458)
Net change in total OPEB liability
(41,547)
51,472
19,187
Total OPEB liability - beginning
258,540
207,068
187,881
Total OPEB liability - ending
$ 216,993 $
258,540 $
207,068
Covered employee payroll $ 2,428,727 $ 2,472,843 $ 3,359,887
Total OPEB liability as a percentage of
covered employee payroll 8.93% 10.46% 6.16%
* GASB 75 requires an employer to disclose a 10 -year history. However, until a
full 10 -year trend is compiled, information will be presented only for those
years which information is available.
* The following
discount rate was used in each period:
9/30/2018 -
3.50%
9/30/2019 -
3.83%
9/30/2020 -
2.75%
9/30/2021-
2.41%
9/30/2022 -
2.19%
9/30/2023 -
4.40%
W-11
0
0
City of Okeechobee, Florida
Schedule of Changes in Total OPEB Liability and Related Ratios
2020 2019 2018
$ 12,015 $ 12,580 $ 13,441
6,320 5,640 4,977
6,792
-
-
14,710
(4,290)
(3,808)
(9,915)
(9,081)
(17,198)
29,922
4,849
(2,588)
157,959
153,110
155,698
$ 187,881 $ 157,959 $ 153,110
$ 3,041,518 $ 2,984,722 $ 2,809,503
6.18% 5.29% 5.45%
-79-
0 •
City of Okeechobee, Florida
Notes to Required Supplementary Information
A. ADDITIONAL ACTUARIAL INFORMATION
Valuation Date: 10/01/2022
Notes: Actuarially determined contribution rates are calculated as of October 1, which is two years
prior to the end of the fiscal year in which contributions are reported.
Methods and Assumptions Used to Determine Contributions Rates:
Police Officers' Firefighters' General Employees'
Pension Plan Pension Plan Pension Plan
Actuarial Cost
Method: Aggre
Amortization N/A
Method:
Remaining
Amortization N/A
Period:
Asset Valuation
Method:
Salary Increases: 6.00%
1 nflation: 2.50%
Investment Rate of
7.00%
Return:
Retirement Aee:
gate Aggregate Aggregate
N/A N/A
N/A N/A
4 -year smoothed market 4 -year smoothed market 4 -year smoothed market
100% when first eligible
for Normal Retirement or
DROP entry
Mortality: For healthy participants
during employment, PUB -
2010 Headcount
Weighted Safety
Employee Female
Mortality Table and
Safety Below Median
Employee Male Mortality
Table, both set forward 1
year, with fully
generational mortality
improvements projected
to each future decrement
date with Scale MP -2018.
7.00%
2.50%
6.00%
100% when first eligible
for Normal Retirement or
DROP entry.
For healthy participants
during employment, PUB -
2010 Headcount
Weighted Safety
Employee Female
Mortality Table and
Safety Below Median
Employee Male Mortality
Table, both set forward 1
year, with fully
generational mortality
improvements projected
to each future decrement
date with Scale MP -2018.
9Y111
6.00%
2.50%
6.75%
100% when first eligible
for Normal Retirement or
DROP entry
For healthy participants
during employment, PUB -
2010 Headcount
Weighted General Below
Median Employee
Mortality Table, separate
rates for males and
females, set back 1 year
for males, with fully
generational mortality
improvements projected
to each future decrement
date with Scale MP -2018.
Mortality
(Continued)
0 •
City of Okeechobee, Florida
Notes to Required Supplementary Information
Police Officers' Firefighters'
Pension Plan Pension Plan
For healthy participants
postemployment, PUB -
2010 Headcount
Weighted Safety Healthy
Retiree Female Mortality
Table and Safety Below
Median Healthy Retiree
Male Mortality Table,
both set forward 1 year,
with fully generational
mortality improvements
projected to each future
decrement date with
Scale MP -2018. For
disabled participants,
80% PUB -2010
Headcount Weighted
General Disabled Retiree
Mortality Table/20% PUB -
2010 Headcount
Weighted Safety Disabled
Retiree Mortality Table,
separate rates for males
and females, without
projected mortality
improvements.
For healthy participants
postemployment, PUB -
2010 Headcount
Weighted Safety Healthy
Retiree Female Mortality
Table and Safety Below
Median Healthy Retiree
Male Mortality Table,
both set forward 1 year,
with fully generational
mortality improvements
projected to each future
decrement date with
Scale MP -2018. For
disabled participants,
80% PUB -2010
Headcount Weighted
General Disabled Retiree
Mortality Table/20% PUB -
2010 Headcount
Weighted Safety Disabled
Retiree Mortality Table,
separate rates for males
and females, without
projected mortality
improvements.
IF -1111111111
General Employees'
Pension Plan
For healthy participants
post employment, PUB -
2010 Headcount
Weighted General Below
Median Healthy Retiree
Mortality Table, separate
rates for males and
females, set back 1 year
for males, with fully
generational mortality
improvements projected
to each future decrement
date with Scale MP -2018.
For disabled participants,
PUB -2010 Headcount
Weighted General
Disabled Retiree
Mortality Table, separate
rates for males and
females, both set forward
3 years, without
projected mortality
improvements.
THIS PAGE IS INTENTIONALLY LEFT BLANK.
-82-
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Members of the City Council
City of Okeechobee, Florida
We have audited, in accordance with the 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, the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of City of Okeechobee,
Florida, (the "City"), as of and for the year ended September 30, 2023, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated April 8, 2024.
Other auditors audited the financial statements of the City of Okeechobee, Florida Municipal Police
Officers' Pension Trust Fund, the City of Okeechobee, Florida Municipal Firefighters' Pension Trust
Fund and the City of Okeechobee Employees' Retirement System, as described in our report on the
City of Okeechobee, Florida's financial statements. This report does not include the results of the
other auditors' testing of internal control over financial reporting or compliance and other matters
that are reported on separately by those auditors.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City'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 opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, we do not express an opinion on the effectiveness of the City'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 a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's 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.
-83-
Carr, Riggs & Ingram, LLC
C A R R
215 Baytree Drive
R I G G S&
CRIINGRAM
Melbourne, Florida 32940
CPAs and Advisors
321.255.0088
386.336.4189 (fax)
CRlcpa.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Members of the City Council
City of Okeechobee, Florida
We have audited, in accordance with the 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, the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of City of Okeechobee,
Florida, (the "City"), as of and for the year ended September 30, 2023, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements, and have issued
our report thereon dated April 8, 2024.
Other auditors audited the financial statements of the City of Okeechobee, Florida Municipal Police
Officers' Pension Trust Fund, the City of Okeechobee, Florida Municipal Firefighters' Pension Trust
Fund and the City of Okeechobee Employees' Retirement System, as described in our report on the
City of Okeechobee, Florida's financial statements. This report does not include the results of the
other auditors' testing of internal control over financial reporting or compliance and other matters
that are reported on separately by those auditors.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City'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 opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal
control. Accordingly, we do not express an opinion on the effectiveness of the City'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 a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's 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.
-83-
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. However, material
weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City'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 or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity'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 entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
CA'",Any If
Melbourne, Florida
April 8, 2024
-84-
CRICARR
RIGGS &
INGRAM
CPAs and Advisors
INDEPENDENT AUDITOR'S MANAGEMENT LETTER
The Honorable Mayor and Members of the City Council
City of Okeechobee, Florida
Report on the Financial Statements
Carr, Riggs & Ingram, LLC
215 Baytree Drive
Melbourne, Florida 32940
321.255.0088
386.336.4189 (fax)
CRlcpa.com
We have audited the financial statements of the City of Okeechobee, Florida, (the "City") as of and
for the fiscal year ended September 30, 2023, and have issued our report thereon dated April 8,
2024.
Auditor's Responsibility
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; and Chapter 10.550, Rules of the
Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and
on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in
Accordance with Government Auditing Standards; and Independent Accountant's Report on an
examination conducted in accordance with AICPA Professional Standards, AT -C Section 315,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor
General. Disclosures in those reports and schedule, which are dated April 8, 2024, should be
considered in conjunction with this management letter.
Prior Audit Findings
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 financial audit report. No findings and recommendations were made in the preceding
annual financial audit report.
Official Title and Legal Authority
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 this management letter, unless disclosed in the notes to the financial statements. The legal
authority of the City and its component units are disclosed in the footnotes.
-85-
Financial Condition and Management
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate
procedures and communicate the results of our determination as to whether or not the City met
one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the
specific condition(s) met. In connection with our audit, we determined that the City 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(8), Rules of the Auditor General, we applied
financial condition assessment procedures for the City. It is management's responsibility to monitor
the City's financial condition, and our financial condition assessment was based in part on
representations made by management and review of financial information provided by same.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance
with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which
warrants the attention of those charged with governance. In connection with our audit, we did not
note any such findings.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, Federal and other granting agencies, the City Council members, and applicable
management, and is not intended to be and should not be used by anyone other than these specified
parties.
Com,V�Pr , C.Pr", t -L -C-.
Melbourne, Florida
April 8, 2024
111IM1111
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH LOCAL GOVERNMENT
INVESTMENT POLICIES
The Honorable Mayor and Members of the City Council
Of the City of Okeechobee, Florida
We have examined the City of Okeechobee, Florida's (the "City") compliance with the requirements of
Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended
September 30, 2023. Management is responsible for the City's compliance with the specified
requirements. Our responsibility is to express an opinion on the City's compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the City complied, in all
material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the City complied with the specified
requirements. The nature, timing, and extent of the procedures selected depend on our judgment,
including as assessment of the risks of material noncompliance, whether due to fraud or error. We
believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance
with relevant ethical requirements relating to the examination engagement.
Our examination does not provide a legal determination on the City's compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with the requirements of Section
218.415, Florida Statutes, Local Government Investment Policies, for the year ended September 30,
2023.
This report is intended solely for the information and use of management, City Council, and the
State of Florida Auditor General and is not intended to be and should not be used by anyone other
than these specified parties.
F
Melbourne, Florida
April 8, 2024
E10
Carr, Riggs & Ingram, LLC
G A R R
215 Baytree Drive
R I G G S&
CRIINGRAM
Melbourne, Florida 32940
CPAs and Advisors
321.255.0088
386.336.4189 (tax)
CRlcpa.com
INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE WITH LOCAL GOVERNMENT
INVESTMENT POLICIES
The Honorable Mayor and Members of the City Council
Of the City of Okeechobee, Florida
We have examined the City of Okeechobee, Florida's (the "City") compliance with the requirements of
Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended
September 30, 2023. Management is responsible for the City's compliance with the specified
requirements. Our responsibility is to express an opinion on the City's compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether the City complied, in all
material respects, with the specified requirements referenced above. An examination involves
performing procedures to obtain evidence about whether the City complied with the specified
requirements. The nature, timing, and extent of the procedures selected depend on our judgment,
including as assessment of the risks of material noncompliance, whether due to fraud or error. We
believe that the evidence obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance
with relevant ethical requirements relating to the examination engagement.
Our examination does not provide a legal determination on the City's compliance with specified
requirements.
In our opinion, the City complied, in all material respects, with the requirements of Section
218.415, Florida Statutes, Local Government Investment Policies, for the year ended September 30,
2023.
This report is intended solely for the information and use of management, City Council, and the
State of Florida Auditor General and is not intended to be and should not be used by anyone other
than these specified parties.
F
Melbourne, Florida
April 8, 2024
E10
City of Okeechobee, Florida
REQUIRED COMMUNICATIONS
September 30, 2023
C A R R
RIRIGGS &
CINGRAM
CPAs and Advisors
April 8, 2024
Honorable Mayor and City Council
City of Okeechobee, Florida
55 S.E. Third Avenue
Okeechobee, FL 34974
Carr, Riggs & Ingram, LLC
215 Baytree Drive
Melbourne, FL 32940
321255.0088
386.336.4189 (fax)
Ulcpa.com
We are pleased to present the results of our audit of the financial statements of the City of
Okeechobee, Florida (the "City") for the year ended September 30, 2023.
This report to the Honorable Mayor and City Council summarizes our audit, the report issued and
various analyses and observations related to the City's accounting and reporting. The document
also contains the communications required by our professional standards.
Our audit was designed, primarily, to express an opinion on the City's basic financial statements for
the year ended September 30, 2023. We considered the City's current and emerging needs, along
with an assessment of risks that could materially affect the financial statements, and aligned our
audit procedures accordingly. We conducted the audit with the objectivity and independence that
the City expects. We received the full support and assistance of City personnel.
At Carr, Riggs & Ingram, LLC (CRI), we are continually evaluating the quality of our professionals'
work in order to deliver audit services of the highest quality that will meet or exceed your
expectations. We encourage you to provide any feedback you believe is appropriate to ensure that
we do not overlook a single detail as it relates to the quality of our services.
This report is intended solely for the information and use of the Honorable Mayor, City Council and
management of the City and should not be used by anyone other than these specified parties.
We appreciate this opportunity to work with you. If you have any questions or comments, please
contact me at 321.255.0088 or laviles@cricpa.com.
Very truly yours,
Lindsay J. Aviles, CPA
Partner
Carr, Riggs & Ingram, LLC
- 1 -
0 •
Required Communications ■
As discussed with management during our planning process, our audit plan represented an
approach responsive to the assessment of risk for the City. Specifically, we planned and performed
our audit to:
• Perform audit services, as requested by the Honorable Mayor and City Council, 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, in order to express an opinion on
the City's financial statements for the year ending September 30, 2023;
• Report on internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with Government
Auditing Standards;
• Communicate directly with the Honorable Mayor and City Council and management
regarding the results of our procedures;
• Address with the Honorable Mayor, City Council and management any accounting and
financial reporting issues;
• Anticipate and respond to concerns of the Honorable Mayor, City Council and management;
and
• Other audit -related projects as they arise and upon request.
-2-
0 •
Required Communications ■
We have audited the financial statements of the City of Okeechobee, Florida for the year ended
September 30, 2023, and have issued our report thereon dated April 8, 2024. Professional
standards require that we provide you with the following information related to our audit:
MATTER TO BE COMMUNICATED••RESPONSE
Auditor's responsibility under Generally Accepted
As stated in our engagement letter dated September
Auditing Standards, Government Auditing
5, 2023, our responsibility, as described by
Standards and Chapter 10.550, Rules of the Florida
professional standards, is to express an opinion
Auditor General
about whether the financial statements prepared by
management with your oversight are fairly
presented, in all material respects, in conformity with
accounting principles generally accepted in the
United States of America (GAAP) and Chapter 10.550
Rules of the Florida Auditor General. Our audit of the
financial statements does not relieve you or
management of your responsibilities.
As part of our audit, we considered the internal
control of the City and compliance with laws,
regulations, and grants. Such considerations were
solely for the purpose of determining our audit
procedures and not to provide any assurance
concerning such internal control and compliance
with laws and regulations.
Client's responsibility
Management, with oversight from those charged
with governance, is responsible for establishing and
maintaining internal controls, including monitoring
ongoing activities; for the selection and application
of accounting principles; and for the fair presentation
in the financial statements of financial position,
results of operations, and cash flows in conformity
with the applicable framework. Management is
responsible for the design and implementation of
programs and controls to prevent and detect fraud.
Management is responsible for overseeing nonaudit
services by designating an individual, preferably from
senior management, with suitable skill, knowledge,
or experience; evaluate the adequacy and results of
those services; and accept responsibility for them.
Planned scope and timing of the audit
Our initial audit plan was not significantly altered
during our fieldwork.
-3-
Required Communications ■
MATTER TO BE COMMUNICATED.•RESPONSE
Management judgments and accounting
Please see the following section titled "Accounting
estimates
Policies, Judgments and Sensitive Estimates and CRI
The process used by management in forming particularly
Comments on Quality."
sensitive accounting estimates and the basis for the
auditor's conclusion regarding the reasonableness of
those estimates.
Potential effect on the financial statements of
No such risks or exposures were noted.
any significant risks and exposures
Major risks and exposures facing the City and how they
are disclosed.
Significant accounting policies, including critical
Significant accounting policies are described in Note
accounting policies and alternative treatments
2 to the financial statements.
within generally accepted accounting principles
New accounting policies were adopted during the
and the auditor's judgment about the quality of
fiscal year as a result of the following recently issued
accounting principles
accounting pronouncement:
• The initial selection of and changes in significant
accounting policies or their application; methods used
• Statement No. 91, Conduit Debt Obligations
to account for significant unusual transactions, and
(GASB 91)
effect of significant policies in controversial or
emerging areas for which there is a lack of
• Statement No. 93, Replacement of Interbank
authoritative guidance or consensus.
Offered Rates (GASB 93)
• The auditor should also discuss the auditor's
judgment about the quality, not just the acceptability,
• Statement No. 96, Subscription -Based
of the City's accounting policies as applied in its
Information Technology Arrangements (GASB 96)
financial reporting. The discussion should include
The adoption of the above statements had no impact
such matters as consistency of accounting policies
on the financial statements.
and their application, and clarity and completeness of
the financial statements, including disclosures. Critical
We noted no transactions entered into by the City
accounting policies and practices applied by the City
during the year for which there is a lack of
in its financial statements and our assessment of
authoritative guidance or consensus. All significant
management's disclosures regarding such policies and
m
practices (including any significant modifications to
transactions have been recognized in the financial
such disclosures proposed by us but rejected by
statements in the proper period.
management), the reasons why certain policies and
Certain financial statement disclosures are
practices are or are not considered critical, and how
particularly sensitive because of their significance to
current and anticipated future events impact those
determinations;
financial statement users. The most sensitive
• Alternative treatments within GAAP for accounting
disclosures affecting the financial statements were:
policies and practices related to material items,
The disclosure of pension trust funds in Note 4-B to
including recognition, measurement presentation
the financial statements due to the reported
and disclosure alternatives, that have been discussed
with client management during the current audit
performance of plan assets.
period, the ramifications of the use of such alternative
The disclosure of Post -Employment Benefit
disclosures and treatments, and the treatment
Obligations in Note 4-C to the financial statements
preferred by the auditor, Furthermore, if the
accounting policy selected by management is not the
since this represents a future liability to the City.
policy preferred by us, discuss the reasons why
The financial statement disclosures are neutral,
management selected that policy, the policy preferred
consistent, and clear.
by us, and the reason we preferred the other policy.
-4-
Required Communications ■
MATTER TO BE COMMUNICATED
AUDITOR'S RESPONSE
Significant difficulties encountered in the audit
We encountered no significant difficulties in dealing
Any significant difficulties, for example, unreasonable
with management in performing and completing our
logistical constraints or lack of cooperation by
audit.
management.
Disagreements with management
We are pleased to report that no such disagreements
Disagreements, whether or not subsequently resolved,
arose during the course of our audit.
about matters significant to the financial accounting,
reporting, or auditing matter, that could be significant to
the financial statements or the auditor's report. This does
not include those that came about based on incomplete
facts or preliminary information.
Other findings or issues
None noted.
Matters significant to oversight of the financial reporting
practices by those charged with governance. For
example, an entity's failure to obtain the necessary type
of audit, such as one under Government Auditing
Standards, in addition to GRAS.
Matters arising from the audit that were
None noted.
discussed with, or the subject of correspondence
with management
Business conditions that might affect risk or discussions
regarding accounting practices or application of auditing
standards.
Corrected and uncorrected misstatements
See "Summary of Audit Adjustments" section.
All significant audit adjustments arising from the audit
whether or not recorded by the City, that could
individually or in the aggregate have a significant effect
on the financial statements. We should also inform the
City Council about uncorrected misstatements aggregated
by us during the current engagement and pertaining to
the latest period presented, that were determined by
management to be immaterial, both individually and in
the aggregate, to the financial statements taken as a
whole. Any internal control deficiencies that could have
prevented the misstatements.
Major issues discussed with management prior
Discussions occurred in the normal course of our
to retention
professional relationship and our responses were not
Any major accounting, auditing or reporting issues
a condition to our retention.
discussed with management in connection with our initial
or recurring retention.
Consultations with other accountants
To our knowledge, there were no such consultations
When management has consulted with other accountants
with other accountants.
about significant accounting or auditing matters.
Written representations
See "Draft Management Representation Letter"
A description of the written representations the auditor
section.
requested (or a copy of the representation letter).
• 0
Required Communications ■
MATTER TO BE COMMUNICATED
••RESPONSE
Internal control deficiencies
See "Independent Auditor's Report on Internal
Any significant deficiencies or material weaknesses in the
Control Over Financial Reporting and on Compliance
design or operation of internal control that came to the
and Other Matters Based on an Audit of Financial
auditor's attention during the audit.
Statements Performed in Accordance with
Government Auditing Standards." See also the
"Independent Auditor's Management Letter."
Fraud and illegal acts
We are unaware of any fraud or illegal acts involving
Fraud involving senior management, the Plan
management or causing material misstatement of
Administrator or those responsible for internal controls, or
the financial statements.
causing a material misstatement of the financial
statements, where the auditor determines there is
evidence that such fraud may exist. Any illegal acts
coming to the auditor's attention involving senior
management and any other illegal acts, unless clearly
inconsequential.
Other information in documents containing
Our responsibility related to documents (including
audited financial statements
annual reports, websites, etc.) containing the
The external auditor's responsibility for information in a
financial statements is to read the other information
document containing audited financial statements, as well
to consider whether:
as any procedures performed and the results.
• Such information is materially inconsistent
with the financial statements; and
• We believe such information represents a
material misstatement of fact.
We have not been provided any such items to date and
are unaware of any other documents that contain the
audited financial statements.
Significant unusual accounting transactions
No significant unusual accounting transactions were
Auditor communication with governance to include
noted during the year.
auditor's views on policies and practices management
used, as well as the auditor's understanding of the
business purpose.
Required Supplementary Information
We applied certain limited procedures to
The auditors responsibility for required supplementary
management's discussion and analysis and the
information accompanying the financial statements, as
required supplementary information ("RSI") as listed
well as any procedures performed and the results.
in the table of contents of the financial statements
that supplements the basic financial statements. Our
procedures consisted of inquiries of management
regarding the methods of preparing the information
and comparing the information for consistency with
management's responses to our inquiries, the basic
financial statements and other knowledge we
obtained during our audit of the basic financial
statements. We did not audit the RSI and do not
express an opinion or provide any assurance on the
RSI.
W3
Accounting Policies, Judgments and Sensitive Estimates & CRI Comments on
Quality
We are required to communicate our judgments about the quality, not just the acceptability, of the
City's accounting principles as applied in its financial reporting. We are also required to
communicate critical accounting policies and sensitive accounting estimates. Accounting estimates
are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance
to the financial statements and because of the possibility that future events affecting them may
differ significantly from those expected. The City Council may wish to monitor throughout the year
the process used to compute and record these accounting estimates. The table below summarizes
our communications regarding these matters.
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AUDITOR'S
CONCLUSIONS ON
ACCOUNTINGAREA POLICY
CRITICAL
POLICY?
JUDGMENTS &
SENSITIVE ESTIMATE
QUALITY OF
ACCOUNTING•
APPLICATION
The City's policies are in
Investments
Except as noted below, the
X
The City relies on
City reports their
investment valuation
accordance with all
investments at fair value.
information from the
applicable accounting
Money market
City's investment
guidelines and GASB.
investments and certain
manager (investment
interest-earning
consultant) and from
investment contracts with
information from
a remaining maturity of
investment pool
one-year or less at the
sponsors based on
date of purchase may be
financial market
reported at amortized
information.
cost.
The City follows the
provisions of Section 150:
Investments, of the GASB
Codification when
reporting investments.
Depreciation
The City depreciates
X
The City depreciates
The City's recognition
of Capital
property and equipment
property and equipment
methods and
Assets
using the straight-line
over their estimated
disclosures appear
method.
useful lives which are
appropriate.
based on the experience
with similar assets and
guidance provided by
Section 1400: Reporting
on Capital Assets, of the
GASB Codification.
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Accounting
AREA
Policies, Judgments
ACCOUNTING POLICYCRITICAL
and Sensitive
Estimates & CRI
JUDGMENTS &
Comments on
Quality
CONCLUSIONS ON
POLICYACCOUNTING
APPLICATION
Other Post-
The City records a liability
X
The OPEB liability is
We evaluated the key
Employment
for its post -employment
projected using
factors and assumptions
Benefits
benefits obligation other
methods and
in determining they are
than pensions.
assumptions as
reasonable in relation
provided in the most
to the financial
recent actuarial
statements taken as a
valuation, in accordance
whole.
with the provisions of
GASB Statement No. 75.
Health care cost trend
rates were based on
market assessments.
Pension Trust
The City participates in
X
Key assumptions
We evaluated the
Funds
police officers'
utilized by the actuary
assumptions used by
firefighters' and general
in making the estimates
the actuary in
employees' pension
in accordance with
estimating the City's
plans. The plans utilize
GASB 68. The total
total pension liability,
an independent actuary
pension liability was
the fiduciary net
to provide an actuarial
determined by an
position, and the
valuation report specific
actuarial valuation.
related deferred
to each plan. This report
outflows/inflows and
provides each plan with
found them to be in
estimates of the total
accordance with the
pension liability, fiduciary
provisions of GASB 68
net position, related
and reasonable in
deferred
relation to the financial
outflows/inflows and
statements taken as a
actuarially required
whole.
contributions in
accordance with the
provisions of GASB 68.
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Accounting Policies, Judgments and Sensitive Estimates & CRI Comments on M
Quality
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• 0
Summary of Audit Adjustments ■
During the course of our audit, we accumulate differences between amounts recorded by the City
and amounts that we believe are required to be recorded under GAAP reporting guidelines. Those
adjustments are either recorded (corrected) by the City or passed (uncorrected). Uncorrected
misstatements or the matters underlying them could potentially cause future period financial
statements to be materially misstated, even if, in the auditor's judgment, such uncorrected
misstatements are immaterial to the financial statements under audit.
The following adjustments were passed (uncorrected) by the City.
It was noted during testing that the amounts for four copier leases were not recorded as right -of -
use assets and offset with a corresponding liability, which is both an understatement of assets and
understatement of liabilities in the amount of $14,907.
QUALITATIVE MATERIALITY CONSIDERATIONS
In evaluating the materiality of audit differences when they do arise, we consider both quantitative
and qualitative factors, for example:
• Whether the difference arises from an item capable of precise measurement or whether it
arises from an estimate, and, if so, the degree of imprecision inherent in the estimate.
• Whether the difference masks a change in earnings or other trends.
• Whether the difference changes a net decrease in assets to addition, or vice versa.
• Whether the difference concerns an area of the City's operating environment that has been
identified as playing a significant role in the City's operations or viability.
• Whether the difference affects compliance with regulatory requirements.
• Whether the difference has the effect of increasing management's compensation — for
example, by satisfying requirements for the award of bonuses or other forms of incentive
compensation.
• Whether the difference involves concealment of an unlawful transaction.
aElm
• 0
Draft Management Representation Letter ■
April 8, 2024
Carr, Riggs & Ingram, LLC
215 Baytree Drive
Melbourne, Florida 32940
This representation letter is provided in connection with your audit of the financial statements of
the City of Okeechobee, Florida, which comprise the respective financial position of the
governmental activities, each major fund, and the aggregate remaining fund information as of
September 30, 2023, and the respective changes in financial position for the year then ended and
the disclosures (collectively, the "financial statements"), for the purpose of expressing opinions as
to whether the financial statements are presented fairly, in all material respects, in accordance with
accounting principles generally accepted in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material.
Items are considered material, regardless of size, if they involve an omission or misstatement of
accounting information that, in light of surrounding circumstances, makes it probable that the
judgment of a reasonable person relying on the information would be changed or influenced by the
omission or misstatement. An omission or misstatement that is monetarily small in amount could
be considered material as a result of qualitative factors.
We confirm, to the best of our knowledge and belief, as of April 8, 2024, the following
representations made to you during your audit.
Financial Statements
1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter
dated September 5, 2023, including our responsibility for the preparation and fair presentation
of the financial statements in accordance with U.S. GAAP and for preparation of the
supplementary information in accordance with the applicable criteria.
2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP
and include all properly classified funds and other financial information of the primary
government and all component units required by generally accepted accounting principles to be
included in the financial reporting entity.
3) We acknowledge our responsibility for the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
4) We acknowledge our responsibility for the design, implementation, and maintenance of internal
control to prevent and detect fraud.
5) The methods, significant assumptions and data used in making accounting estimates and their
related disclosures are appropriate to achieve recognition, measurement, or disclosure that is
reasonable in accordance with U.S GAAP.
6) Related party relationships and transactions, including revenues, expenditures/expenses, loans,
transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to
related parties have been appropriately accounted for and disclosed in accordance with U.S.
GAAP.
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Draft Management Representation Letter ■
7) Adjustments or disclosures have been made for all events, including instances of
noncompliance, subsequent to the date of the financial statements that would require
adjustment to or disclosure in the financial statements.
8) The effects of all known actual or possible litigation, claims, and assessments have been
accounted for and disclosed in accordance with U.S. GAAP.
9) Guarantees, whether written or oral, under which the City is contingently liable, if any, have
been properly recorded or disclosed.
10) All workers compensation claims are being processed through the insurance company and all
applicable deductibles have been accrued.
11) Expenditures of state programs were below the $750,000 threshold in the fiscal year ended
September 30, 2023, and we were not required to have an audit in accordance with the Florida
Single Audit Act. Expenditures of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)
program exceeded $750,000; however, the City has met the criteria established by the U.S.
Department of the Treasury and has elected to obtain a compliance examination in lieu of a
single audit under the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principals and Audit Requirements for Federal Awards
(Uniform Guidance).
Information Provided
12) We have provided you with:
a) Access to all information, of which we are aware, that is relevant to the preparation and fair
presentation of the financial statements, such as records (including information obtained
from outside of the general and subsidiary ledgers), documentation, and other matters [and
all audit or relevant monitoring reports, if any, received from funding sources].
b) Additional information that you have requested from us for the purpose of the audit.
c) Unrestricted access to persons within the City from whom you determined it necessary to
obtain audit evidence.
d) Minutes of the meetings of City Council or summaries of actions of recent meetings for
which minutes have not yet been prepared.
13) All material transactions have been recorded in the accounting records and are reflected in the
financial statements.
14) We have disclosed to you the results of our assessment of the risk that the financial statements
may be materially misstated as a result of fraud.
15) We have no knowledge of any fraud or suspected fraud that affects the City and involves -
0 Management,
• Employees who have significant roles in internal control, or
• Others where the fraud could have a material effect on the financial statements.
16) We have no knowledge of any allegations of fraud or suspected fraud affecting the City's
financial statements communicated by employees, former employees, regulators, or others.
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Draft Management Representation Letter ■
17) We have no knowledge of instances of noncompliance or suspected noncompliance with
provisions of laws, regulations, contracts, or grant agreements, or waste or abuse, whose
effects should be considered when preparing financial statements.
18) We are not aware of any pending or threatened litigation, claims, or assessments or unasserted
claims or assessments that are required to be accrued or disclosed in the financial statements,
and we have not consulted a lawyer concerning litigation, claims, or assessments.
19) We have disclosed to you the names of the City's related parties and all the related party
relationships and transactions, including any side agreements. There are none.
Government -specific
20) There have been no communications from regulatory agencies concerning noncompliance with,
or deficiencies in, financial reporting practices.
21) We have identified to you any previous audits, attestation engagements, and other studies
related to the objectives of the audit and whether related recommendations have been
implemented.
22) We have identified to you any investigations or legal proceedings that have been initiated with
respect to the period under audit. There are no investigations we are aware of.
23) The City has no plans or intentions that may materially affect the carrying value or classification
of assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fund
balance or net position.
24) We are responsible for compliance with the laws, regulations, and provisions of contracts and
grant agreements applicable to us, including tax or debt limits and debt contracts, and legal and
contractual provisions for reporting specific activities in separate funds.
25) We have no conduit debt obligations that would need to be disclosed in accordance with
GASBS No. 91.
26) We are not aware of any identified or suspected fraud and noncompliance with provisions of
laws, regulations, contracts, and grant agreements that we believe have a material effect on the
financial statements.
27) There are no violations or possible violations of budget ordinances, laws and regulations
(including those pertaining to adopting, approving, and amending budgets), provisions of
contracts and grant agreements, tax or debt limits, and any related debt covenants whose
effects should be considered for disclosure in the financial statements, or as a basis for
recording a loss contingency, or for reporting on noncompliance.
28) As part of your audit, you assisted with preparation of the financial statements and disclosures.
We acknowledge our responsibility as it relates to those nonaudit services, including that we
assume all management responsibilities; oversee the services by designating an individual, India
Riedel (Finance Director), who possesses suitable skill, knowledge, or experience; evaluate the
adequacy and results of the services performed; and accept responsibility for the results of the
services. We have reviewed, approved, and accepted responsibility for those financial
statements and disclosures.
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Draft Management Representation Letter ■
29) The effect of the uncorrected misstatement is immaterial, both individually and in the
aggregate, to the financial statements as a whole. The uncorrected misstatement is attached to
the representation letter as Exhibit A.
30) The City has satisfactory title to all owned assets, and there are no liens or encumbrances on
such assets nor has any asset been pledged as collateral.
31) The City has complied with all aspects of contractual agreements that would have a material
effect on the financial statements in the event of noncompliance.
32) There are no majority equity interests in legally separate organizations or joint ventures with an
equity interest.
33) The financial statements include all fiduciary activities required by GASBS No. 84 , as amended.
34) The financial statements properly classify all funds and activities in accordance with
GASBS No. 34, as amended.
35) All funds that meet the quantitative criteria in GASBS Nos. 34 and 37 for presentation as major
are identified and presented as such and all other funds that are presented as major are
particularly important to financial statement users.
36) Components of net position (net investment in capital assets; restricted; and unrestricted) and
classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned)
are properly classified and, if applicable, approved.
37) Investments, derivative instrument transactions, and land and other real estate held by
endowments are properly valued.
38) Provisions for uncollectible receivables have been properly identified and recorded.
39) Expenses have been appropriately classified in or allocated to functions and programs in the
statement of activities, and allocations have been made on a reasonable basis.
40) Revenues are appropriately classified in the statement of activities within program revenues
and general revenues.
41) Interfund, internal, and intra -entity activity and balances have been appropriately classified and
reported.
42) Deposits and investment securities and derivative instruments are properly classified as to risk
and are properly disclosed.
43) Receivables recorded in the financial statements represent valid claims against debtors for
transactions arising on or before the balance sheet date and have been reduced to their
estimated net realizable value.
44) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported,
and, if applicable, depreciated or amortized.
45) We have appropriately disclosed the City's policy regarding whether to first apply restricted or
unrestricted resources when an expense is incurred for purposes for which both restricted and
unrestricted net position is available and have determined that net position is properly
recognized under the policy.
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Draft Management Representation Letter •
46) We are following our established accounting policy regarding which resources (that is,
restricted, committed, assigned, or unassigned) are considered to be spent first for
expenditures for which more than one resource classification is available. That policy
determines the fund balance classifications for financial reporting purposes.
47) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is
measured and presented within prescribed guidelines and the methods of measurement and
presentation have not changed from those used in the prior period. We have disclosed to you
any significant assumptions and interpretations underlying the measurement and presentation
of the RSI.
48) The City is in compliance with Florida Statute 218.415, local government investment policies, in
all respects.
a) We are responsible for establishing and maintaining effective internal control over
compliance.
b) We have performed an evaluation of the City's compliance with Florida Statute 218.415,
local government investment policies.
c) All relevant matters are reflected in the measurement or evaluation of City's compliance
with the specified requirements.
d) We are responsible for selecting the specified requirements and for determining that
the specified requirements are appropriate for our purposes.
e) We have provided you with all relevant information and access to information and
personnel in connection with your examination of compliance with Florida Statute
218.415, local government investment policies.
f) We have disclosed to you all known matters that may contradict the City's compliance
with the specified requirements and we have disclosed to you all communications from
regulatory agencies, internal auditors, other independent accountants or consultants,
and others regarding possible noncompliance with Florida Statute 218.415, local
government investment policies, including communications received between
September 30, 2023 and the date of the examination report.
g) We have responded fully to all inquiries made to us by you during the engagement.
Signature:
Title: City Administrator
-15-
Signature:
Title: Finance Director
0 •
Draft Management Representation Letter ■
Exhibit A
The following adjustments were passed (uncorrected) by the City, as they are deemed to be
immaterial to the financial statements:
Pursuant to GASB 87, it was noted during testing that the amounts for four copier leases were not
recorded as right -of -use assets and offset with a corresponding lease liability, which is both an
understatement of assets and understatement of liabilities in the amount of $14,907.
-16-