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2019

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City of Williston, Florida

Financial Statements

and Independent Auditor’s Report

For Fiscal Year Ended September 30, 2019



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FINANCIAL STATEMENTS AND

INDEPENDENT AUDITOR’S REPORT


CITY OF WILLISTON, FLORIDA WILLISTON, FLORIDA


SEPTEMBER 30, 2019 TABLE OF CONTENTS

Independent Auditor’s Report 1-2

Management’s Discussion and Analysis 3-17

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Position 18

Statement of Activities 19

Fund Financial Statements:

Balance Sheet - Governmental Funds 20

Reconciliation of the Balance Sheet of Governmental

Funds to the Statement of Net Position 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

Statement of Revenues, Expenditures, and Changes in

Fund Balances - General Fund - Budget and Actual 24

Statement of Revenues, Expenditures, and Changes in Fund Balances - Special Revenue Fund -

Airport Development - Budget and Actual 25

Statement of Revenues, Expenditures, and Changes in Fund Balances - Special Revenue Fund -

Community Redevelopment - Budget and Actual 26

Statement of Net Position - Proprietary Fund 27

Statement of Revenues, Expenses, and Changes in Net Position -

Proprietary Fund 28

Statement of Cash Flows - Proprietary Fund 29

Statement of Fiduciary Net Pension -

Pension Trust Funds 30

Statement of Changes in Fiduciary Net Pension -

Pension Trust Funds 31

Notes to Basic Financial Statements 32-65

Required Supplementary Information

Retirement Plan and Trust for Police Officers: Schedule of Changes in the Employer’s Net Pension -

Liability (Asset) and Related Ratios 66

Schedule of Contributions 67

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITOR’S REPORT


CITY OF WILLISTON, FLORIDA WILLISTON, FLORIDA


SEPTEMBER 30, 2019 TABLE OF CONTENTS

Retirement Plan and Trust for General Employees: Schedule of Changes in the Employer’s Net Pension -

Liability (Asset) and Related Ratios 68

Schedule of Contributions 69

Notes to Required Supplementary Information 69

Florida Retirement System Pension Plan (1)

Schedule of the City’s Proportionate Share of the Net Pension

Liability and Schedule of City Contributions 70

Florida Health Insurance Subsidy Pension Plan (1)

Schedule of the City’s Proportionate Share of the Net Pension

Liability and Schedule of City Contributions 71

Other Postemployment Benefits (OPEB) Plan

Schedule of Changes in Total OPEB Liability 72

Other Reports

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 73-74

Management Letter 75-76

Independent Accountant’s Report on Compliance with

Section 218.415, Florida Statutes 77

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INDEPENDENT AUDITOR’S REPORT


Honorable Mayor and City Council City of Williston

Williston, Florida


Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Williston (the City) as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.


Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.


Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.


An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.


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Honorable Mayor and City Council City of Williston

Williston, Florida


INDEPENDENT AUDITOR’S REPORT


Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2019, and the respective changes in financial position, and the respective budgetary comparison for the General Fund, the Airport Development and Community Redevelopment Special Revenue Funds and, where applicable, cash flows, thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.


Emphasis of a Matter - COVID-19

As more fully described in Note 12 to the financial statements as a subsequent event, the City may be operationally and financially impacted by the outbreak of the novel coronavirus (COVID-19) pandemic.


Other Matters


Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Pension Plans’ Schedules, and Other Postemployment Benefits Schedules, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, 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 Reporting Required by Government Auditing Standards

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In accordance with Government Auditing Standards, we have also issued our report dated June 23, 2020, on our consideration of the City’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’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’s internal control over financial reporting and compliance.


June 23, 2020

Ocala, Florida



The Management Discussion and Analysis (MD&A) serves as an introduction to the City of Williston, Florida’s (the City) basic financial statements. It also provides assistance to the readers by focusing on significant financial issues, providing an overview of the City’s financial activities, and identifying the City’s ability to meet future challenges; it assists in identifying significant deviations from the financial plan and addresses any individual fund issues or concerns. Since the MD&A is designed to focus on the current year’s activities, resulting changes and currently known facts, it should be read in conjunction with the City’s financial statements (beginning on page 18). Please note the City provides prior year comparative financial information as required by Governmental Accounting Standards Board (GASB) Statement No. 34.


As management of the City, we offer readers of the City’s annual financial statements this narrative overview and analysis of financial activities of the City for fiscal year ended September 30, 2019. All amounts, unless otherwise indicated, are expressed in thousands of dollars.


FINANCIAL HIGHLIGHTS







The City Council is the highest level of decision-making authority of the City, and approves the establishment, increase, and reduction in Committed fund balances by budget resolutions and amendments. Restricted and Committed fund balances are always used first for the purposes for which they were designated. Changes to this practice require prior City Council approval. A minimum fund balance amount has not been formally adopted.


Revenues and Expenditures/Expenses


Program Revenues—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, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.


Property Tax Revenue Recognition—Under Florida law, the assessment of all properties and the collection of all county, municipal, and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector. The laws of the state regulating tax assessments are also designed to assure a consistent property valuation method state-wide. Florida Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The City levied a rate of 6.25 mills in the 2018 tax roll.


The tax levy of the City is established by the City Council prior to October 1 of each year and the Levy County Property Appraiser incorporates the City’s millage into the total tax levy, which includes the County and the County School Board tax requirements.


All property is reassessed according to its fair market value January 1 of each year. Each assessment roll is submitted to the Executive Director of the Florida Department of Revenue for review to determine if the rolls meet all of the appropriate requirements of Florida Statutes.


All taxes are levied on November 1 of each year, or as soon thereafter, as the assessment roll is certified and delivered to the County Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early payment at the rate of 4% in the month of November, 3% in the month of December, 2% in the month of January, and 1% in the month of February. Taxes paid in March are without discount.


On, or prior to, June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After sale, tax certificates bear interest of 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County.


Delinquent taxes on personal property bear interest of 18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute of limitations.


The City does not accrue its portion of the County-held tax sale certificates or personal property tax warrants because such amounts are not measurable and available as of the balance sheet date.


Compensated Absences—It is the government’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for three quarters of the unpaid accumulated sick leave since the government has a policy to pay only one quarter of such pay benefits when employees separate from service with the government. All vacation pay and one quarter of sick pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund 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.


Operating and Non-Operating Revenues and Expenses—Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the government’s utility system enterprise fund are charges to customers for sales and services. The government also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.


On-Behalf Payments for Fringe Benefits

The City receives on-behalf payments from the State of Florida to be used for Police Officers’ Retirement Plan Contributions. On-behalf payments to the City totaled $26,515 for the year ended September 30, 2019. Such payments are recorded as intergovernmental revenue and public safety expenditures in the generally accepted accounting principles basis government-wide and general fund financial statements.


Effects of New Accounting Pronouncements

In fiscal year 2019, the City implemented GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placement. The primary objective of this Statement is to improve the information that is disclosed in the notes to government financial statements related to debt, including direct borrowings and direct placement.


Note 2 - Stewardship, Compliance, and Accountability


Budgetary Information

Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the general, special revenue, enterprise, and pension trust funds. All annual appropriations lapse at fiscal year-end. Project-length financial budgets are adopted for all capital projects funds.


Prior to August 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted in August and September to obtain taxpayer comments. Prior to October 1, the budget is legally adopted and approved. Revisions that alter the total expenditures of any fund must be approved by the City Council.


The appropriated budget is prepared by fund, function, and department. The government’s City Manager may make transfers of appropriations within a department. Transfers of appropriations between departments require approval by the City Council by resolution under the government’s charter. The legal level of budgetary control is the fund level. Further, Florida Statutes, Section 166.241, requires the government to expend or contract for expenditures only in pursuance of budgeted appropriations. There were no material violations of budgetary or other legal and contractual provisions requiring disclosure.


Note 3 - Deposits and Investments


Interest Rate

Risk Credit

Type Fair Value WAM Level Ratings

Cash and Cash Equivalents (Non-Pension Investments):

Cash Deposits

$ 3,528,580

N/A

N/A

N/A

Petty Cash

2,000

N/A

N/A

N/A

Investments:

Certificates of Deposit 359,233 N/A N/A N/A

Total 3,889,813


Pension Cash and Investments: Police Officer Pension:

FMiVT Cash and Money Market

26,214

N/A

N/A

FMiVT Broad Market High Quality Bond

419,423

6.43 Years

2

AAf/S4

FMiVT Core Plus

416,510

5.16 Years

3

Not Rated

FMiVT Diversified Large Cap Equity

1,010,693

Not Rated

2

Not Rated

FMiVT Small to Mid-Cap Equity Fund

334,956

Not Rated

2

Not Rated

FMiVT International Equity Portfolio

422,336

Not Rated

2

Not Rated

FMiVT Core Real Estate Portfolio

282,528

Not Rated

3

Not Rated


Regular Employee Pension:

FMiVT Cash and Money Market

42,444

N/A

N/A

FMiVT Broad Market High Quality Bond

679,108

6.43 Years

2

AAf/S4

FMiVT Core Plus

674,392

5.16 Years

3

Not Rated

FMiVT Diversified Large Cap Equity

1,636,462

Not Rated

2

Not Rated

FMiVT Small to Mid-Cap Equity Fund

542,343

Not Rated

2

Not Rated

FMiVT International Equity Portfolio

683,824

Not Rated

2

Not Rated

FMiVT Core Real Estate Portfolio

457,456

Not Rated

3

Not Rated

Total Pension Cash and Investments

7,628,689

Total

$ 11,518,502



Type

Fair Value

As shown in the Statement of Net Position:

Entity-Wide Cash and Cash Equivalents

$ 3,237,277

Entity-Wide Non-Pension Investments

359,233

Entity-Wide Restricted Cash and

Cash Equivalents

293,303

Pension Cash and Money Market

68,658

Pension Investments

7,560,031

Total

$ 11,518,502


Fair Value Hierarchy

The City holds assets that are defined as short-term investments. The City’s investments are recorded at fair value unless the investment qualifies as an external investment pool under the guidance in GASB Statement No. 79. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels:


Level 1—Inputs - are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date.


Level 2—Inputs - are inputs, other than quoted prices included within Level 1, that are observable for an asset or liability, either directly or indirectly.


Level 3—Inputs - are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs.


Custodial Credit Risk—Cash Deposits

The City’s cash deposits are covered by Federal depository insurance or by collateral held by the City’s custodial bank, which is pledged to a state trust fund that provides security for amounts held in excess of Federal Deposit Insurance Corporation (FDIC) coverage in accordance with the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes.


The Florida Security for Public Deposits Act (the Act) established guidelines for qualification and participation by banks and savings associations, procedures for the administration of the collateral requirements and characteristics of eligible collateral. Under the Act, the qualified public depository must pledge at least 50% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance. Additional collateral up to a maximum of 125% may be required if deemed necessary under conditions set forth in the Act.


The government’s investment policies are governed by state statutes and local ordinance. The basic allowable investment instruments include Local Government Surplus Funds, or any governmental investments pool authorized pursuant to the Florida Interlocal Act, as provided by Section 163, Florida Statutes, SEC registered money market funds with the highest credit quality rating, interest bearing time deposits or savings accounts in qualified public depositories, and direct obligations of the U.S. Treasury.


The government’s pension trust funds are held in the Florida Municipal Pension Trust Fund (FMPTF), which is a local government investment pool and, therefore, considered an external investment pool.


At September 30, 2019, the government’s investment balances consisted of certificates of deposit with local banks and the pension trust funds held in the FMPTF. Asset allocation in the FMPTF external investment pool at September 30, 2019, is as follows:


Asset

Allocation

Asset Allocation

Percentage

Cash and Money Market

0.9%

Broad Market High Quality Bond

14.4%

Core Plus

14.3%

Diversified Large Cap Equity

34.7%

Diversified Small to Mid-Cap Equity

11.5%

International Equity

14.5%

Core Real Estate Portfolio

9.7%

Total

100.0%


Interest Rate Risk—Interest rate risk exists when there is a possibility the change in interest rates could adversely affect an investment’s fair value. The City does not have a policy for interest rate risk. The weighted average maturity (WAM) of the underlying debt investments in the FMPTF pool is used to determine interest rate risk when applicable.


Credit Risk—Credit risk exists when there is a probability that the issuer or other counterparty to an investment may be unable to fulfill its obligations. The government’s investment policy limits exposure to credit risk.


Custodial Credit Risk—Under GASB Statement No. 40, disclosure is only required if investments are uninsured, unregistered, and held by either the counterpart of the counterparty’s trust department or agent but not in the City’s name. The City’s investments are through the FMPTF in the FMiVT, which are evidenced by shares in the pool. Investments in the pools should be disclosed but not categorized because they are not evidenced by securities that exist in a physical or book entry form. The City’s investments are with the pool, not the securities that make up the pool and, therefore, no disclosure is required.


Foreign Current Risk—The City’s investments are part of FMiVT and those investments are not subject to foreign current risk.

CITY OF WILLISTON, FLORIDA

NOTES TO FINANCIAL STATEMENTS


Note 4 - Capital Assets

Capital asset activity for the year ended September 30, 2019, was as follows:

Transfers/

Beginning Balance

Increases

Decreases

Adjustments

Ending Balance

Governmental Activities

Capital Assets, Not Being

Depreciated:

Land

$ 1,413,225

$ -

$ -

$ -

$ 1,413,225

Construction in Progress

868,773

11,870

(835,076)

9,787

55,354

Total Capital Assets, Not Being

Depreciated

2,281,998

11,870

(835,076)

9,787

1,468,579

Capital Assets, Being

Depreciated:

Buildings and Improvements

18,850,866

1,927,317

-

(9,787)

20,768,396

Equipment

4,474,260

160,597

(82,258)

-

4,552,599

Total Capital Assets, Being

Depreciated

23,325,126

2,087,914

(82,258)

(9,787)

25,320,995

Less Accumulated

Depreciation for:

Buildings and Improvements

(7,044,421)

(1,009,958)

-

-

(8,054,379)

Equipment

(3,008,875)

(123,876)

65,151

-

(3,067,600)

Total Accumulated Depreciation

(10,053,296)

(1,133,834)

65,151

-

(11,121,979)

Total Capital Assets, Being

Depreciated, Net

13,271,830

954,080

(17,107)

(9,787)

14,199,016

Total Governmental Activities

Capital Assets, Net

$ 15,553,828

$ 965,950

$ (852,183)

$ -

$ 15,667,595

Business-Type Activities

Capital Assets, Not Being

Depreciated:

Land and Land Improvements

$ 133,966

$ -

$ -

$ -

$ 133,966

Construction in Progress - CDBG

-

-

-

-

-

Construction in Progress - Non-CDBG

2,557,840

400,172

-

(2,958,012)

-

Total Capital Assets, Not

Being Depreciated

2,691,806

400,172

-

(2,958,012)

133,966

Capital Assets, Being

Depreciated:

Plant and Distribution

Systems

14,301,276

9,026

-

2,915,747

17,226,049

Machinery and Equipment

2,465,485

318,377

-

42,265

2,826,127

Total Capital Assets, Being

Depreciated

16,766,761

327,403

-

2,958,012

20,052,176

Less Accumulated

Depreciation for:

Plant and Distribution

Systems

(9,416,661)

(515,918)

-

-

(9,932,579)

Machinery and Equipment

(1,580,578)

(171,973)

-

-

(1,752,551)

Total Accumulated Depreciation

(10,997,239)

(687,891)

-

-

(11,685,130)

Total Capital Assets, Being

Depreciated, Net

5,769,522

(360,488)

-

2,958,012

8,367,046

Business-Type Activities Capital

Assets, Net

$ 8,461,328

$ 39,684

$ -

$ -

$ 8,501,012


Depreciation expense was charged to functions/programs as follows:


Governmental Activities

General Government

$ 5,163

Law Enforcement

89,561

Communications

875

Planning and Zoning

839

Streets and Sidewalks

59,501

Building and Permitting

367

Fire Control

81,759

Legal and Legislative

185

Parks and Playgrounds

42,177

Library

13,168

Community Redevelopment

34,908

Airport Operations

805,331

Total Depreciation Expense - Governmental Activities

$ 1,133,834

Business-Type Activities

Electric

$ 94,853

Water

190,779

Natural Gas

103,499

Sewer

153,460

Sanitation

97,440

Administrative Services - Utility

47,860

Total Depreciation Expense - Business-Type Activities

$ 687,891

Note 5 - Interfund Receivable, Payables, Transfers, and Advances


The outstanding balances between funds result mainly from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur. All amounts are expected to be paid within one year. Noted no amounts receivable and/or payable as of fiscal year-end.


The composition of interfund advances as September 30, 2019, is as follows:


Advanced To

Advanced From

Amount

General Fund

Utility Fund

$ 198,075


The advance was to fund the purchase of a fire truck and a prorata share is paid back annually.


The City makes transfers among its funds in the course of the fiscal year. The principal purpose of the transfers is to allocate resources from the enterprise funds to the general fund to assist with various governmental activities. Also, transfers are used to move unrestricted general fund revenues to finance various activities that the government must account for in the other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs. A summary of interfund transfers follows:



Major Funds

Interfund

Transfers In Transfers (Out)


General Fund

$ 690,000

$ 144,498

Utility Fund

53,430

690,000

Community Redevelopment Fund

91,068

-

Total Interfund Transfers

$ 834,498

$ 834,498

Note 6 - Long-Term Debt


Bank Notes Related to Governmental Activities—The government had one bank promissory note, which was for the purpose of financing a fire truck. Interest rate on the note is 2.50%. The original loan amount was $148,900 and is secured by a pledge of revenues received from Levy County for fire protection services. At September 30, 2019, total interest paid on this note was $2,196 and the final payment will be made during the 2022-2023 fiscal year.

Utility Water Well Bank Note—In July 2008, the government obtained a note with a local bank allowing borrowings up to $751,000 to finance construction of a utility water well. Interest is stated at 4.0% and will be adjustable annually, beginning on the date the final principal advance is made on the note. The adjusted rate on the note is the New York prime rate multiplied by a factor of .65 but shall never be less than 4.0%. Upon final principal advance, the government shall make 42 monthly payments of principal and interest until July 2019, at which time all outstanding principal and interest is due. At September 30, 2019, the adjusted interest rate was 4.0% and total interest paid on this note was $2,527. The final payment was made in the 2018-2019 fiscal year.

New City Hall Bank Note—In May 2018, the City obtained a bank note with a local bank for up to $3,000,000 to finance the demolition of the old City Hall building and construction of the new City Hall building. The interest rate will be 3.5% from May 8, 2018 through May 8, 2039. The City will have to pay, at closing, an origination cost of $3,000. The City will make 12 monthly payments of interest only, beginning May 8, 2018, followed by 240 payments in the amount required to amortize the unpaid principal balance. All outstanding principal and interest are due on May 8, 2039. At September 30, 2019, the interest rate was 3.5% and total interest paid on this note was $39,067.

General Long-Term Debt Schedules:


Note Payable Direct Borrowings

Year Ended Governmental Activities

September 30, 2019

Principal

Interest

2020

$ 21,761

$ 1,619

2021

22,311

1,069

2022

22,876

505

2023

7,923

40

2024

-

-

Total

$ 74,871

$ 3,233


Business-Type Long-Term Debt Schedules:

Direct Borrowings

Year Ended Business-Type Activities - Utility System

September 30, 2019 Principal Interest

2020

$ 45,165

$ 42,961

2021

46,771

41,255

2022

48,435

39,591

2023

50,158

37,869

2024

51,942

36,085

2025-2029

288,769

151,362

2030-2034

343,907

96,224

2035-2039

370,392

30,810

Total

$ 1,245,539

$ 476,157


Changes in Long-Term Liabilities—Long-term liability activity for the year ended September 30, 2019, was as follows:


Beginning

Balance


Increases


Decreases

Ending

Balance

Due Within

One Year

Governmental Activities

Direct Borrowing:

Note Payable - Fire Truck

$ 96,055

$ -

$ (21,184)

$ 74,871

$ 21,761

Compensated Absences

152,604

127,834

(141,734)

138,704

34,676

Special Termination Benefits

Payable ***

20,593

1,500

(1,500)

20,593

1,500

Total Governmental Activities

Long-Term Activities Business-Type Activities Direct Borrowings:

Note Payable:


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$ 269,252 $ 129,334 $ (164,418)


$ 234,168 $ 57,937


Utility Water System

$ 75,792

$ - $ (75,792)

$ - $ -

City Hall

440,618

822,912 (17,991)

1,245,539 45,165

516,410

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822,912 (93,783)

image

1,245,539 45,165

Compensated Absences

55,801

68,865 (49,540)

75,126 18,781

Total Business-Type Activities

$ 572,211

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$ 891,777 $ (143,323)

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$ 1,320,665 $ 63,946


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*** Special termination benefits consist of monthly retirement benefits payable to the former Mayor of the City.

This benefit was based on services rendered to the City for greater than 20 years and is payable over the former Mayor's remaining life. The estimated balance of the benefits payable as of September 30, 2019, was $20,593.


Pledged Revenues The City has pledged certain revenues, to repay loans outstanding as of September 30, 2019. The following table reports the revenues, pledged for each note issued, the amounts of such revenues received in the current year, the current year principal and interest paid on the debt, the approximate percentage of each revenue, which is pledged to meet the note obligation, the date through which the revenue is pledged under the note agreement, and the total pledged future revenues for each note, which is the amount of the remaining principal and interest on the notes at September 30, 2019:


Principal

and Estimated Outstanding

Description of Pledge Revenue Interest Percentage Principal and Pledged

Notes Revenue Received Paid Pledged Interest Through Governmental

Activity

Note Payable:

Fire Truck Levy County Board of County Commissioners for Revenues Fire

Protection Services $ 248,522 $ 23,380 8% $ 78,104 2023


Business-Type Activity

Note Payable:

CDBG Well Loan Net System

Revenues (1)(2) $ 352,606 $ 78,318 22% $ - -


City Hall Loan Net System

Revenues (1)(2) $ 274,288 $ 57,058 21% $ 1,721,697 2039

  1. Net System Revenues - all excess revenues received by the City for the operation of utility system (after payment of associated operation and maintenance expense).

  2. Per the loan agreement, pledged revenues for the City Hall Note will be “all utility system revenues”. Additionally, the City agrees to pledge such additional non-ad valorem tax revenues as is necessary. Information for pledged revenue amounts will be included when loan balance outstanding is finalized.


Note 7 - Other Postemployment Benefits (OPEB)


Plan Description – OPEB Plan is a single employer benefit plan administered by the City. The City implemented the requirements of this statement prospectively as of October 1, 2018.


Pursuant to the provision of Section 112.0801, Florida Statutes, former employees who retire from the City and their dependents are eligible to participate in the City’s Health Plan for health and life insurance, as long as they pay a full premium applicable to the coverage elected.


Benefits Provided – The OPEB Plan is a single employer benefit plan administered by the City. The retirees are charged the same premium amount the insurance company charges for the type of coverage elected. However, the premiums set by the insurance company are based on average experiences among younger active employees and older retired employees. The older retirees would have a higher cost for health insurance coverage without the City’s subsidizing the cost of the retiree coverage because it pays all or a significant portion of the premium on behalf of the active employees. Per GASB Statement No. 75, this is called the “implicit rate subsidy”.


Employees Covered by Benefit Terms – At October 1, 2018, the date of the most recent actuarial valuation, plan participation consisted of the following covered by the benefit terms:

Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 2

Active Plan Members 43

Total Participants 45


Contributions – For the OPEB Plan, contribution requirements of the City are established and may be amended through action from the City Council. Currently the City’s OPEB benefits are unfunded. The actual contributions are based on pay-as-you-go financing requirements. There is not a separate trust fund or equivalent arranged in which the City would make contributions to advance-fund the obligation, as it does for its pension funds.


Net OPEB Liability – The City’s net OPEB liability was measured as of September 30, 2019, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.


Actuarial Assumptions – The total OPEB liability in the September 30, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:


Discount Rate: 3.58% per annum; this rate was used to discount all future benefit

payments and based on the return on the S & P Municipal Bond 20-year High Grade Index as of the measurement date.

Inflation: 3.50%

Salary Increases: 3.00% per annum Investment Rate of Return: 3.58%

Healthcare Cost Trend Rates: Increases in healthcare costs are assumed to be 7.50% for the 2018/2019

fiscal year graded down by 0.50% per year to 5.00% for the 2023/24 and later fiscal years.

Mortality Basis: Sex-distinct rates set forth in the PUB-2010 Mortality Table for general

and public safety employees, with full generational improvements in mortality using Scale MP-2017.

Changes: Since the prior measurement date, the discount rate was decreased from 3.64% per annum to 3.58% per annum, the monthly implied subsidy at age 55 for the 2018/19 fiscal year for the retiree and his spouse was decreased from $216.00 to $200.00, and the mortality basis was changed from the RP-2000 Mortality Table with generational improvements in mortality using Scale BB to the PUB-2010 Mortality Table with generational improvements in mortality using Scale MP-2017 Employees Covered: Regular, full-time employees for the City.

Types of Benefits Offered: Post-retirement medical, dental, vision, and life insurance benefits.

Premium: Retirees must pay the full monthly premium as determined by the insurance carrier for coverage other than medical and life insurance coverage for the retiree himself and must pay the full cost of health insurance coverage for himself above any explicit subsidies provided by the City. The City pays any applicable premiums for single coverage under the medical insurance program until age 65 for those employees who retire on or after age 62 with at least 25 years of service and who were covered under the City’s health insurance program for at least five years immediately prior to their retirement. In addition, the City pays the entire premium for a $15,000 life insurance policy to each retiree. Life insurance coverage decreases by 35% upon the attainment of age 65 and decreases by another 15% upon the attainment of age 70.


Changes in the OPEB Liability – for the fiscal year ended September 30, 2019, were as follows:


Total OPEB

Liability

Balance at September 30, 2018 $ 356,250

Changes for a Year:

Service Cost

48,542

Demographic Gain/Loss

(1,654)

Assumption Changes

(25,491)

Expected Interest Growth

12,783

Benefit Payments and Refunds

(37,793)

Net Changes

(3,613)

Balance at September 30, 2019

$ 352,637


Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost Trend Rates – The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.0 percent) or 1- percentage-point higher (8.0 percent) than the current discount rate:


Comparison of Net OPEB Liability Using Alternative Discount Rates


1% Decrease

3.58% Discount Rate

1% Increase

Net OPEB Liability

$ 385,235

$ 352,637

$ 323,339


Comparison of Net OPEB Liability Using Alternative Healthcare Cost Trend Rates


7.5% Graded Down

1% Decrease

to 5%

1% Increase

Net OPEB Liability

$ 310,512

$ 352,637

$ 403,945


OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources – For the year ended September 30, 2019, the City recognized OPEB expense of $22,030. At September 30, 2019, the City reported no deferred outflows of resources related to OPEB. There were deferred inflows of resources related to OPEB of $24,641.


Fiscal Year

Deferred Inflows

2020

$ 2,504

2021

2,504

2022

2,504

2023

2,504

2024

2,504

Thereafter

12,121

Total

$ 24,641


Note 8 - Employee Retirement Plans


Defined Contribution Plan

The City provides a 457 Deferred Compensation Plan for the City Manager. Contributions to the Plan for the year ended September 30, 2019, were $13,270.


Defined Benefits Plans

The City maintains two single employer, defined benefit plans that separately cover full-time police officer employees and all other general employees. Prior to October 1, 2004, the City’s police officers were covered under the same defined benefit plan along with the City’s general employees. Effective October 1, 2004, the City established a separate plan and trust for police officers and transferred all liabilities for any accrued benefits, and the cash equivalents equal to the present value to pay the accrued benefits, to the new plan and trust.


Police Officers Plan


Retirement Plan and Trust for Police Officers—The City sponsors and administers the Retirement Plan for the Police Officers of the City of Williston (the Plan). The Plan is considered a defined benefit single-employer plan and is accounted for as a separate pension trust fund. The Plan covers all full-time police officers. A City employee shall become a participant of the Plan at the time of employment. Participants contribute 5% of compensation to the Plan, whereas the City is required to contribute an amount actuarially determined using the aggregate actuarial cost method, currently 22.16% (October 1, 2019) of covered payroll. The cost of administering the Plan is financed by investment earnings.


Name of the Pension Plan: Retirement Plan and Trust for Police Officers of the City of Williston. Legal Plan Administrator: Board of Trustees of the Retirement Plan for the Police Officers of the

City of Williston Single-Employer Defined Benefit Pension Plan.

Pension Plan Reporting: The Plan issues a stand-alone financial report each year, which contains

information about the Plan’s fiduciary net position. The Plan’s fiduciary net position has been determined on the same basis used by the pension plan and is equal to the market value of the assets as calculated under the accrual basis of accounting. This report is available to the public at the Plan’s administrative office: Retirement Department, Florida League of Cities, Inc. P.O. Box 1757, Tallahassee, Florida 32302,

(800) 342-8112.


Description of Benefit Terms:

Employees Covered: Full-time police officers employed by the City of Williston. Types of Benefits Offered: Retirement, disability, and pre-retirement death benefits. Basic Pension Formula: 3.00% of average earnings times service.

Early Retirement Adjustment: Early retirement pension is reduced by 3% for each year by which the

early retirement date precedes the normal retirement date.

Disability Pension: Larger of basic pension formula or 42% of average earnings (for service-

connected disabilities).

Larger of basic pension formula or 25% of average earnings (for non- service-connected disabilities).

Disability benefits are offset as necessary to preclude the total of the disability compensation from exceeding average earnings.

Pre-Retirement Death Benefit: Basic pension formula payable for 10 years at early or normal retirement

age (payable to the beneficiary of vested participant).

Return of accumulated employee contributions (payable to the beneficiary of a non-vested participant).

Normal Retirement Age: Age 55 with at least five years of service (only for participants who were

fully vested at the time of the their transfer into the Plan from the general employees’ plan prior to June 1, 2008), or Age 55 with at least 10 years of service, or Age 52 with at least 25 years of service, or any age with at least 30 years of service.

Early Retirement Age: Age 50 with at least 10 years of service.

Vesting Requirement: 100% vesting after five years of service (only for participants who were

fully vested at the time of their transfer into the Plan from the general employees’ plan prior to June 1, 2008), or 100% vesting after 10 years of service.

Form of Payment: Actuarially increased single life annuity 10-year certain and life annuity.

Actuarially equivalent 50%, 662/3%, 75%, or 100% joint and contingent annuity. Any other actuarially equivalent form of payment approved by the Board of Trustees.

Average Earnings: Average of the highest five-years of pensionable earnings out of the last

10 years.

Cost-of-Living Adjustment: No automatic cost-of-living adjustment is provided. Deferred Retirement Option

Plan (DROP): A participant who has attained their normal retirement age is eligible to

participate in the DROP for a period of up to 60 months. The DROP accounts are credited with interest at the rate of 6.50% per annum.

Legal Authority: The Plan was established effective October 1, 2004, pursuant to City

ordinance and has been amended several times since that date.

Plan Amendments: Since the completion of the previous valuation, Ordinances 638 and 641

were adopted. These Ordinances added a DROP provision. This addition of the DROP had no actuarial impact.


Information used to determine the Net Pension Liability:


Employer’s Reporting Date: September 30, 2019

Measurement Date: September 30, 2019

Actuarial Valuation Date: October 1, 2018


Additional information as of the latest actuarial valuation is as follows:


Actuarial Cost Method Aggregate

Amortization Method Level Percentage, Open

Remaining Amortization Period 30 Years

Asset Valuation Method Market Value

Non-Investment Expenses Liabilities have been loaded by 2.75% to account for non-investment expenses.

Mortality Basis Sex-distinct rates set forth in the RP-2000 Blue Collar Mortality Table, with full generational improvements in mortality using Scale BB.

Retirement Retirement is assumed to occur at normal retirement age.

Future Contributions Contributions from the employer and employees are assumed to be made as legally required.

Changes No assumptions were changed since the prior measurement date.

Actuarial Assumptions:

Investment Rate of Return 7.00%

Projected Salary Increases 4.50% per annum

Non-Investment Expenses Liabilities have been loaded by 2.75%

Includes Inflation at * 2.92%

Discount Rate 7.00% (2.92% per annum is due to inflation)

Cost of Living Adjustments 0.0%

Changes No assumptions were changed since the prior measurement date.


*Same assumptions as used for the actuarial valuation of system.


Determination of Long-Term Expected Rate of Return on Plan Assets:



Investment Category

Target Allocation

Expected Long-Term Real Return

Core Bonds Core Plus

15.00%

15.00%

1.60% per annum

2.10% per annum

U.S. Large Cap Equity

34.00%

4.60% per annum

U.S. Small Cap Equity

11.00%

5.50% per annum

Non-U.S. Equity

15.00%

6.70% per annum

Core Real Estate

10.00%

5.00% per annum

Total or Weighted Arithmetic Average

100.00%

4.23% per annum



Current membership in the Plan is comprised of the following:


October 1,

Group

2019

Retirees and Beneficiaries Currently Receiving Benefits

4

Terminated Plan Participants Entitled to but not yet

Receiving Benefits

4

Active Plan Participants

11

Total

19


The components of the net pension liability (asset) of the sponsor on September 30, 2019, were as follows:


Total Pension Liability

$ 2,585,525

Plan Fiduciary Net Position

(2,692,252)

Sponsor’s Net Pension Liability (Asset)

$ (106,727)

Plan Fiduciary Net Position as a Percentage of

Total Pension Liability (Asset)

104.12%


The differences between the actuarial financial statements and the pension financial statement were due to timing differences.


The investments in the Police Officers separate Share Plan are not included in the calculation of the Plan Fiduciary Net Position, however, are included in the Statement of Fiduciary Net Position. These investments totaled $231,298 as of September 30, 2019.


Pension Expense

Service Cost $ 113,336

Other Recognized Changes in Net Pension Liability:

Expected Interest Growth (7,566)

Investment Gain/Loss 9,154

Demographic Gain/Loss 539

Employee Contributions (24,421)

Administrative Expenses 10,954

Assumption Changes 20,920

Total Pension Expense $ 122,916


Deferred Inflows and Deferred Outflows of Resources:


Deferred Outflows

of Resources


Deferred Inflows

of Resources

Balance as of September 30, 2018

$ 345,759

$ 239,717

Amortization Payments

(95,315)

(64,703)

Investment Gain/Loss

40,066

-

Demographic Gain/Loss

5,253

-

Balance as of September 30, 2019

$ 295,763

$ 175,014


Amortization schedule for deferred outflows and inflows of resources:


Year Ending

September 30,

Deferred Outflows

of Resources

Deferred Inflows

of Resources

2020

$ 62,304

$ 64,703

2021

62,304

60,432

2022

62,304

34,974

2023

59,859

5,709

2024

44,391

3,806

Thereafter

4,601

5,390

Total

$ 295,763

$ 175,014


Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate:


Discount

1% Decrease Rate – 7.00% 1% Increase

Total Pension Liability $ 2,865,748 $ 2,585,525 $ 2,350,472

Less Fiduciary Net Position (2,692,252) (2,692,252) (2,692,252)

Net Pension Liability (Asset) $ 173,496 $ (106,727) $ (341,780)


Changes in Net Pension Liability (Asset):


Total Pension Plan Fiduciary Net Pension

Liability (a) Net Position (b) Asset (a+b) Reporting Period Ended September 30, 2018 $ 2,366,854 $ (2,514,158) $ (147,304)

Change for a Year:

Service Cost

113,336

-

113,336

Interest

169,828

(177,394)

(7,566)

Unexpected Investment Income

-

40,066

40,066

Demographic Experience

5,253

-

5,253

Employer Contributions

-

(97,045)

(97,045)

Employee Contributions

-

(24,421)

(24,421)

Benefit Payments and Refunds

(69,746)

69,746

-

Administrative Expenses

-

10,954

10,954

Assumption Changes

-

-

-

Reporting Period Ended September 30, 2019


General Employees Plan

$ 2,585,525

$ (2,692,252)

$ (106,727)


Retirement Plan and Trust for General Employees—The government sponsors and administers the Retirement Plan and Trust for the General Employees of the government (the Plan). The Plan is considered a defined benefit single-employer plan and is accounted for as a separate pension trust fund. The Plan covers all full-time general employees. A government employee shall become a participant of the Plan at the time of employment.


Name of Pension Plan: Retirement Plan for the General Employees of the City of Williston.

Legal Plan Administrator: Board of Trustees of the Retirement Plan for the General Employees of

the City of Williston Single-Employer Defined Benefit Pension Plan.

Type of Plan: Single-Employer Defined Benefit Pension Plan. Current Contribution

Requirements: Employer contributions are actuarially determined, employees

contribute 5.00% of pensionable earnings; employee contribution requirement may be amended by City ordinance but employer contribution requirement is subject to State minimums.

Pension Plan Reporting: The Plan issues a stand-alone financial report each year, which contains

information about the Plans fiduciary net position. The Plan’s fiduciary net position has been determined on the same basis used by the pension plan and is equal to the market value of the assets as calculated under the accrual basis of accounting. This report is available to the public at the Plan’s administrative office: Retirement Department, Florida League of Cities, Inc. P.O. Box 1757, Tallahassee, Florida 32302, (800) 342-8112.


Description of Benefit Terms:

Employees Covered: Full-time employees of the City of Williston, other than Police Officers

and the City Manager.

Types of Benefits Offered: Retirement, disability, and pre-retirement death benefits. Basic Pension Formula: 2.25% of average earnings times service.

Early Retirement Adjustment: The early retirement pension is actuarially equivalent to the normal

retirement pension.

Disability Pension: The disability pension is actuarially equivalent to the normal retirement

pension.

Pre-Retirement Death Benefit: The pre-retirement death benefit is actuarially equivalent to the normal

retirement pension and is payable as a single life annuity or as a single lump sum payment to the beneficiary of a vested participant. Return of accumulated employee contributions (payable to the beneficiary of a non-vested participant).

Normal Retirement Age: Age 62 with at least five years of service. Early Retirement Age: Age 55 with at least five years of service. Vesting Requirement: 100% vesting after five years of service.

Form of Payment: Single life annuity. Actuarially equivalent 10-year certain and life

annuity. Actuarially equivalent 50%, 662/3%, 75%, or 100% joint and contingent annuity. Actuarially equivalent single lump sum payment. Any other actuarially equivalent form of payment approved by the Board of Trustees.

Average Earnings: Average of the highest five years of pensionable earnings out of the last

10 years; pensionable earnings include total compensation other than bonuses, lump sum payments, overtime pay, and extraordinary compensation.


Cost-of-Living Adjustment: None

DROP: A deferred retirement option plan (DROP) is available to those participants who have attained their early or normal retirement age and individuals may participate in the DROP for up to 60 months; DROP accounts are credited with interest at the rate of 6.50% per annum.

Legal Authority: The Plan was established effective October 1, 1983, pursuant to City

ordinance and has been amended several times since that date.

Changes: The benefit terms did not change from the prior measurement date. Additional information as of the latest actuarial valuation is as follows:

Valuation Date October 1, 2018

Actuarial Cost Method Aggregate

Amortization Method Level Percentage, Open

Remaining Amortization Period 30 Years

Asset Valuation Method Market Value

Mortality Basis Sex-distinct rates set forth in the RP-2000 Mortality Table, with full generational improvements in mortality using Scale BB.

Retirement Retirement is assumed to occur at normal retirement age.

Non-Investment Expenses Liabilities have been loaded by 2.75% to account for non-investment expenses.

Future Contributions Contributions from the employer and employees are assumed to be made as legally required.

Changes Since the prior measurement date, the discount rate was decreased from 9.08% per annum to 7.00% per annum.

Actuarial Assumptions:

Investment Rate of Return 7.00%

Projected Salary Increases 4.00%

Non-Investment Expenses Liabilities have been loaded by 2.25%

Includes Inflation at * 3.25%

Discount Rate 7.00% (2.92% per annum is due to inflation)

Cost of Living Adjustments 0.0%

Changes No assumptions were changed since the prior measurement date.


*Same assumptions as used for the actuarial valuation of system.


Current membership in the Plan is comprised of the following:


October 1,

Group 2019

Retirees and Beneficiaries Currently Receiving Benefits 18

Terminated Plan Participants Entitled to but not yet

Receiving Benefits 32

Plan Participants:

Active 35

Total 85


Net Pension Liability (Asset)

The components of the net pension liability of the sponsor on September 30, 2019, were as follows:


Total Pension Liability

$ 3,920,647

Plan Fiduciary Net Position

(4,722,611)

Sponsor’s Net Pension Liability (Asset)

$ (801,964)

Plan Fiduciary Net Position as a Percentage of

Total Pension Liability


120.45%


The differences between the actuarial financial statements and the pension financial statement were due to timing differences related to investments.


Pension Expense

Service Cost $ 170,840

Other Recognized Changes in Net Pension Liability:

Expected Interest Growth

(40,334)

Investment Gain/Loss

24,113

Demographic Gain/Loss

(60,942)

Employee Contributions

(60,484)

Administrative Expenses

20,221

Assumption Changes

81,651

Pension Expense (Negative)

$ 135,065

Determination of Long-Term Expected Rate of Return on Plan Assets:



Investment Category

Target Allocation

Expected Long-Term Real Return

Core Bonds

15.00%

1.60% per annum

Core Plus

15.00%

2.10% per annum

U.S. Large Cap Equity

34.00%

4.60% per annum

U.S. Small Cap Equity

11.00%

5.50% per annum

Non-U.S. Equity

15.00%

6.70% per annum

Core Real Estate

10.00%

5.00% per annum

Total or Weighted Arithmetic Average

100.00%

4.23% per annum


Deferred Inflows and Deferred Outflows of Resources:



Total of Components:

Deferred Deferred

Outflows of Inflows of

Resources Resources

Balance as of September 30, 2018 $ 847,763 $ 639,935

Amortization Payments (221,007) (176,185)

Investment Gain/Loss 78,364 -

Demographic Gain/Loss - 223,681

Balance as of September 30, 2019 $ 705,120 $ 687,431


Other amounts reported as Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions will be recognized in Pension Expense as follows:


Year Ending

September 30,

Deferred Outflows

of Resources

Deferred Inflows

of Resources

2020

$ 142,221

$ 176,187

2021

142,221

166,060

2022

137,173

110,587

2023

91,763

105,839

2024

76,091

92,217

Thereafter

115,651

36,541

Total

$ 705,120

$ 687,431


Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate:


Discount

1% Decrease Rate – 7.00% 1% Increase

Total Pension Liability $ 4,419,268 $ 3,920,647 $ 3,507,284

Less Fiduciary Net Position (4,722,544) (4,722,611) (4,722,544)

Net Pension Liability (Asset) $ (303,276) $ (801,964) $ (1,215,260)


Changes in Net Pension Liability (Asset):


Total Pension Plan Fiduciary Net Pension

Liability (a) Net Position (b) Asset (a+b) Reporting Period Ended September 30, 2018 $ 3,969,492 $ (4,686,232) $ (716,740)

Change for a Year:

Service Cost

170,840

-

170,840

Interest

280,605

(320,939)

(40,334)

Unexpected Investment Income

-

78,364

78,364

Demographic Experience

(223,621)

-

(223,621)

Employer Contributions

-

(30,143)

(30,143)

Employee Contributions

-

(60,484)

(60,484)

Benefit Payments and Refunds

(276,669)

276,669

-

Administrative Expenses

-

20,154

20,154

Assumption Changes

-

-

-

Reporting Period Ended September 30, 2019

$ 3,920,647

$ (4,722,611)

$ (801,964)



Combining Schedule of Fiduciary Net Position

Pension Trust Funds September 30, 2019


Retirement

Retirement

Plan and Trust

Plan and Trust

for the Police

Officers

for the General

Employees


Total

Assets

Cash and Money Market

$ 26,214

$ 42,444

$ 68,658

Investment in External Investment

Pool at Fair Value


2,886,446


4,673,585


7,560,031

Contributions Receivable

10,891

6,514

17,405

Total Assets

2,923,551

4,722,543

7,646,094

Liabilities

Accrued Expenses

2,456

3,358

5,814

Total Liabilities

2,456

3,358

5,814

Net Positions - Held in Trust

for Pension Benefits

$ 2,921,095

$ 4,719,185

$ 7,640,280

Combining Schedule of Changes in Fiduciary Net Position Pension Trust Funds

For The Fiscal Year Ended September 30, 2019


Retirement

Retirement

Plan and Trust

for the Police

Plan and Trust

for the General

Officers

Employees

Total

Additions

Contribution:

Employer


$ 95,072


$ 24,315


$ 119,387

State

26,515

-

26,515

Employees

24,118

60,798

84,916

Total Contributions

145,705

85,113

230,818

Investment Earnings

150,217

242,574

392,791

Total Additions

295,922

327,687

623,609

Deductions

Benefits Paid

69,746

219,405

289,151

Lump Sum Distributions

-

57,264

57,264

Administrative Expenses

11,443

20,238

31,681

Transfers out

(2,275)

2,275

-

Total Deductions

78,914

299,182

378,096

Change in Net Position

217,008

28,505

245,513

Net Position Held in Trust for

Pension Benefits, Beginning of Year


2,704,087


4,690,680


7,394,767

Net Position Held in Trust for

Pension Benefits, End of Year

$ 2,921,095

$ 4,719,185

$ 7,640,280


Florida State Retirement System – Pension Plan Beginning in 2017, all Fire Fighters of the City are eligible to participate in the Florida State Retirement System (the System). This System was created by the Florida Legislature and is a cost-sharing, multiple-employer defined benefit, and public retirement plan available to governmental units within the State of Florida. The System issued a publicly available financial report that includes financial statements and required supplementary information for the System. That report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315, or by calling (850) 488-5706.


All fire employees of the City are eligible to participate in the System. Special risk employees who retire at or after age 55, with six years of creditable service are entitled to a retirement benefit, payable monthly for life, equal to the product of: 1) average monthly compensation in the highest five years of creditable service; 2) creditable service during the appropriate period; and 3) the appropriate benefit percentage. Benefits fully vest on reaching six years of service. Vested employees may retire after six years of creditable service and receive reduced retirement benefits. The System also provides death benefits, disability benefits, and annual cost-of-living adjustments. Benefits are established by Florida Statute. Beginning in 2011, the state mandated a 3% contribution to the plan by the employees. The City currently only has fire employees that participate in Florida Retirement System.


The funding methods and the determination of benefits payable are provided in various acts of the Florida Legislature. These acts provide that employers, such as the City, are required to contribute 24.48% of the compensation for Regular Special Risk and 38.59% for Administrative (with 1.66% for HIS) as of September 30, 2019. In addition, employees that are not participating in the DROP program are required to contribute 3% of their gross salary.


The City contributed 100% of the required contributions to the System for the year ended September 30, 2019, as follows:


Year Amount

2019 $ 78,798


Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions—At September 30, 2019, the City reported a net pension liability of $756,697 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. The City’s proportionate share of the net pension liability was based on projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2019, the City’s proportionate share of the FRS liability was .002197326458% and increase of .00026870868% from the prior year. The City opted to pay retirement on the fire employees in the 2018/2019 budget process.


Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources—For the year ended September 30, 2019, the Sponsor will recognize a Pension Expense of $169,987. On September 30, 2019, the Sponsor reported Deferred Outflows of Resources and Deferred Inflows of Resources related to pensions from the following sources:


Deferred Inflow

Deferred Outflow

Funds

Funds

Differences Between Expected and Actual Experience

$ 470

$ 44,882

Change in Assumptions

-

194,352

Net Difference Between Projected and Actual Earnings

on Pension Plan Investments

41,864

-

Changes in Proportion and Differences Between the

City Contributions and Proportionate Share of

Contributions

- 233,758

City Contributions Subsequent to Measurement Date

- 21,207

Total

$ 42,334 $ 494,199


The Deferred Outflows of Resources related to pensions totaling $21,207 resulting from City contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending September 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:



Year

Total

Inflows/Outflows

2020

$ 129,220

2021

79,354

2022

109,858

2023

79,630

2024

26,696

Thereafter

5,900

Total

$ 430,658


Actuarial Assumptions

The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:


Inflation 2.60%

Salary Increases 3.25% Including Inflation

Investment Rate of Return 7.10%, Net Pension Plan Investment Expense, Including

Inflation


Mortality rates were based on the Generational RP-2000 with Projection Scale BB.


The actuarial assumptions used in the July 1, 2019 valuation, were based on the results of an actuarial experience study for the period June 30, 2013 through June 30, 2018.


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 expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:



Asset Class


Target

Allocation


Annual Arithmetic

Return

Compound

Annual (Geometric)

Return


Standard

Deviation

Cash

1.0%

3.3%

3.3%

1.2%

Fixed Income

18.0%

4.1%

4.1%

3.5%

Global Equity

54.0%

8.0%

6.8%

16.5%

Real Estate

11.0%

6.7%

6.1%

11.7%

Private Equity

10.0%

11.2%

8.4%

25.8%

Strategic Investments

6.0%

5.9%

5.7%

6.7%

Total

100%


Discount Rate—The discount rate used to measure the total pension liability was 7.00 percent. In general, the discount rate for calculating the total pension liability under GASB Statement No. 67 is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. The discount rate used in the 2019 valuation was updated from 7.10 percent to 7.00 percent. The rate of return assumption is a prescribed assumption as defined by ASOP 27. The 7.00 percent assumption was adopted by the 2018 FRS Actuarial Assumption Conference.


Sensitivity of the City’s Proportionate Share of the Net Position Liability to Changes in the Discount Rate— The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.00 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00 percent) or 1- percentage-point higher (8.00 percent) than the current rate:


1% Decrease

Current Discount 1% Increase

5.90%

Rate – 6.90% 7.90%

City’s Proportionate Share of the

Net Pension Liability


$ 1,308,077


$ 756,697 $ 296,201


FRS Pension Plan Fiduciary Net Position—Detailed information about pension plan’s fiduciary net position is available in the separately issued FRS Comprehensive Annual Financial Report.


Health Insurance Subsidy (HIS) Defined Benefit Pension Plan

Plan Description—The HIS Pension Plan (HIS Plan) is a cost-sharing, multiple-employer defined benefit pension plan established to provide a monthly subsidy payment to retired members of any state- administered retirement system in order to assist such retired members in paying the costs of health insurance. Persons are eligible for HIS payments who are retired under a state-administered retirement system, or a beneficiary who is a spouse or financial dependent entitled to receive benefits under a state- administered retirement system, except those individuals who are pension recipients under Sections 121.40, 237.08(18)(a), and 250.22, Florida Statutes, or recipients of health insurance coverage under Section 110.1232, Florida Statutes, or any other special pension or relief act are not eligible for such pension payments. A person is deemed retired from a state-administered retirement system when he or she terminates employment with all employers participating in the FRS and:



Any person retiring on or after July 1, 2001, as a member of the FRS, including a member of the investment plan, must satisfy the vesting requirements for his or her membership class under the pension plan as administered under Chapter 121, Florida Statutes. Any person retiring due to disability must qualify for a regular or in-line-of-duty disability benefit per provisions under Chapter 112, Florida Statutes. Additionally, participants in the Senior Management Service Optional Annuity Program and the State City System Optional Retirement Program are not eligible to receive benefits from the HIS Plan.


Benefits Provided—The benefit is a monthly payment to assist retirees of state-administered retirement systems in paying their health insurance costs and is administered by the Department of Management Services, Division of Retirement.


For the fiscal year ended June 30, 2019, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5. The payments are at least $30 but not more than $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under a state-administered retirement system must provide proof of health insurance coverage, which can include Medicare.


Contributions—The HIS Program is funded by required contributions from FRS participating employers as set by the Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended June 30, 2019, the contribution rate was 1.66 percent of payroll. The state contributed 100 percent of its statutorily required contributions for the current and preceding three years. HIS contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled.


The City’s contributions to the HIS defined benefit pension plan are reported as a total with the pension plan contributions listed above.


Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to HIS—At September 30, 2019, the City reported a net pension liability of $100,045 for its proportionate share of the net pension liability for HIS. The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2019. The City’s proportionate share of the net pension liability was based on projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members, actuarially determined. At June 30, 2019, the City’s proportionate share was 0.0089413716%, which was an increase of 0.00011339147% from its proportionate share measured as of June 30, 2018.


For the year ended September 30, 2019, the City recognized pension expense is listed above. In addition, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:


Deferred

Deferred

Inflow

Funds

Outflow

Funds

Differences Between Expected and Actual Experience

$ 123

$ 1,215

Change in Assumptions

Net Difference Between Projected and Actual Earnings on

8,177

11,584

Pension Plan Investments

-

65

Changes in Proportion and Differences Between the City

Contributions and Proportionate Share of Contributions

- 59,858

City Contributions Subsequent to Measurement Date

- 1,482

Total

$ 8,300 $ 74,204


The deferred outflows of resources related to pensions totaling $1,482 resulting from City contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending September 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:


September 30,

Inflows/Outflows

2020

$ 14,379

2021

13,991

2022

13,286

2023

11,815

2024

7,401

Thereafter

3,550

Total

$ 64,422


Actuarial Assumptions—The total pension liability in the July 1, 2019, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:



Inflation 2.60%

Salary Increase 3.25% Average, Including Inflation Bond Buyer General Obligation 20-Bond

Municipal Bond 3.50%


Mortality rates were based on the Generational RP-2000 with Projection Scale BB.


The actuarial assumptions used in the July 1, 2019, valuation were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, 2013.


Discount Rate—The discount rate used to measure the total pension liability was 3.87 percent. In general, the discount rate for calculating the total pension liability under GASB Statement No. 67 is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The discount rate used in the 2019 valuation was updated from 3.87 percent to 3.50 percent, reflecting the change in the Bond Buyer General Obligation 20-Bond Municipal Bond Index as of June 30, 2019.


Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate— The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 3.50 percent, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.50 percent) or 1- percentage-point higher (4.50 percent) than the current rate:


1% Decrease

Current Discount

1% Increase

2.50%

Rate 3.50%

4.50%

City’s Proportionate Share of the

Net Pension Liability $ 114,206 $ 100,045 $ 88,250


Pension Plan Fiduciary Net Position—Detailed information about the pension plan’s fiduciary net position is available in the separately issued FRS Comprehensive Annual Financial Report.


Note 9 - Other Disclosures


Allowances for Doubtful Accounts

Allowances for doubtful accounts at September 30, 2019, are as follows:


Utility Fund

$ 58,314

General Fund

16,339

Airport Fund

38,195

Total Allowances for Doubtful Accounts

$ 112,848


Note 10 - Other Information


Risk Management

The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; workers’ compensation; and natural disasters for which the government carries commercial insurance. There were no settlements in excess of the insurance coverage in any of the three prior fiscal years.


Contingent Liabilities

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the government expects such amounts, if any, to be immaterial.


Note 11 - Federal Awards and State Financial Assistance


During the fiscal year, the City did not expend greater than $750,000 in federal awards or state financial assistance, therefore an audit in accordance with Title 2 (Uniform Guidance) U.S. Code of Federal Regulation (CFR) Part 200 and the Florida Single Audit Act was not required.


Note 12 - Subsequent Events


The COVID-19 pandemic has created economic disruptions throughout the country as of the date of our report, which could cause significant declines in user fees, state shared revenues, financial markets, and economic activity overall. The ultimate effect of these items to the City and all local governments is expected to be significant but is not quantifiable at this time.


REQUIRED SUPPLEMENTARY INFORMATION


The following supplementary schedules present trend information regarding the retirement plans for the City’s General Employees and Police Officers retirement plans; retirement plans for the City’s Firefighters and Other Postemployment Benefits. This information is necessary for a fair presentation in conformity with generally accepted accounting principles.

CITY OF WILLISTON, FLORIDA RETIREMENT PLAN AND TRUST FOR POLICE OFFICERS

FOR YEAR ENDED SEPTEMBER 30, 2019 SCHEDULE OF CHANGES IN THE EMPLOYER'S NET PENSION

LIABILITY (ASSET) AND RELATED RATIOS


2019

2018

2017

2016

2015

2014

Total Pension Liability

Service Cost

$ 113,336

$ 101,591

$ 91,379

$ 81,601

$ 59,909

$ 62,994

Interest on the Total Pension Liability

169,828

157,781

141,704

103,951

136,436

114,442

Demographic Experience

5,253

(28,525)

(17,330)

26,226

19,567

-

Assumption Changes

-

-

65,439

354,990

(216,983)

-

Benefit Payments, Including Refunds of Employee Contributions


(69,746)


(71,101)


(54,371)


(37,231)


(37,236)


(85,337)

Net Change in Total Pension Liability

218,671

159,746

226,821

529,537

(38,307)

92,099

Total Pension Liability,

Beginning of Year

2,366,854

2,207,108

1,980,287

1,450,750

1,489,057

1,396,958

Total Pension Liability,

End of Year (a)

$ 2,585,525

$ 2,366,854

$ 2,207,108

$ 1,980,287

$ 1,450,750

$ 1,489,057

Plan Fiduciary Net Position

Contributions - Employer

$ (97,045)

$ (90,446)

$ (74,311)

$ (79,553)

$ (75,005)

$ (119,278)

Contributions - Employee

(24,421)

(21,005)

(18,698)

(18,330)

(18,053)

(21,100)

Net Investment Income

(137,328)

(173,485)

(269,174)

(149,871)

2,555

(134,338)

Benefit Payments

69,746

71,101

54,371

37,231

37,236

44,390

Administrative Expense

10,954

10,325

9,711

8,354

10,065

7,685

Net Change in Plan Fiduciary

Net Position

(178,094)

(203,510)

(298,101)

(202,169)

(43,202)

(222,641)

Plan Fiduciary Net Position,

Beginning of Year (2,514,158) (2,310,648) (2,012,547) (1,810,378) (1,767,176) (1,544,535)

image

image

Plan Fiduciary Net Position,

End of Year (b)

Net Pension Liability (Asset) -

$ (2,692,252) $

(2,514,158) $

(2,310,648) $

(2,012,547) $

(1,810,378) $

(1,767,176)


Ending (a) - (b)

$ (106,727)

$ (147,304)

$ (103,540)

$ (32,260)

$ (359,628)

$ (278,119)

Plan Fiduciary Net Position as a

Percentage of Total Pension Liability

104.13%

106.22%

104.69%

101.63%

124.79%

118.68%

Covered Payroll**

$ 44,302

$ 402,249

$ 363,641

$ 331,296

$ 337,006

$ 306,244

Net Pension Liability as a Percentage of Covered Payroll


0.00%


0.00%


0.00%


0.00%


0.00%


0.00%

* GASB Statement No. 67 was adopted for the 2014 Fiscal Year and the 10-year trend information will be developed from that date forward.

**For the 2017 fiscal year, the covered payroll was based on pensionable salary.

CITY OF WILLISTON, FLORIDA

RETIREMENT PLAN AND TRUST FOR POLICE OFFICERS

FOR YEAR ENDED SEPTEMBER 30, 2019

SCHEDULE OF CONTRIBUTIONS


2019


2018


2017


2016


2015


2014

Actuarially Determined Contribution

$ 100,309

$ 94,683

$ 82,868

$ 80,725

$ 75,174

$ 117,485

Contributions in Relation to the

Actuarially Determined Contribution

97,045

90,446

74,311

79,553

75,005

119,278

Contribution Deficiency (Excess)

$ 3,264

$ 4,237

$ 8,557

$ 1,172

$ 169

$ (1,793)

Covered Payroll

$ 444,302

$ 402,249

$ 363,641

$ 331,296

$ 337,066

$ 306,244

Contributions as a Percentage

of Covered Payroll

21.84%

22.49%

20.44%

24.01%

22.25%

38.95%


LIABILITY (ASSET) AND RELATED RATIOS


2019

2018

2017

2016

2015

2014


Total Pension Liability

Service Cost

$ 170,840

$ 141,746

$ 121,584

$ 128,374

$ 95,658

$ 101,093

Interest on the Total Pension Liability

280,605

286,840

268,562

212,271

297,696

260,459

Demographic Experience

(223,621)

(115,227)

32,335

104,482

(250,574)

-

Assumption Changes

-

-

265,359

695,988

(302,502)

-

Benefit Payments, Including

Refunds of Employee Contributions


(276,669)


(423,229)


(446,417)


(322,256)


(201,578)


(211,313)

Net Change in Total Pension Liability

(48,845)

(109,870)

241,423

818,859

(361,300)

150,239

Total Pension Liability,

Beginning of Year

3,969,492

4,079,362

3,837,939

3,019,080

3,380,380

3,230,141

Total Pension Liability,

End of Year (a)

$ 3,920,647

$ 3,969,492

$ 4,079,362

$ 3,837,939

$ 3,019,080

$ 3,380,380

Plan Fiduciary Net Position

Contributions - Employer

$ (30,143)

$ (107,990)

$ (76,582)

$ (32,832)

$ (50,643)

$ (112,114)

Contributions - Employee

(60,484)

(53,296)

(53,684)

(41,937)

(48,533)

(48,537)

Net Investment Income

(242,575)

(338,157)

(573,325)

(343,551)

(3,205)

(368,167)

Benefit Payments

276,669

423,229

446,417

322,256

201,578

384,331

Administrative Expense

20,221

20,487

19,911

17,752

18,972

18,141

Net Change in Plan Fiduciary

Net Position

(36,312)

(55,727)

(237,263)

(78,312)

118,169

(126,346)

Plan Fiduciary Net Position,

Beginning of Year (4,686,232) (4,630,505) (4,393,242) (4,314,930) (4,433,099) (4,306,753)

image

Plan Fiduciary Net Position,

End of Year (b)

$ (4,722,544)

$ (4,686,232)

$ (4,630,505)

$ (4,393,242)

$ (4,314,930)

$ (4,433,099)

Net Pension Liability (Asset) - Ending (a) + (b)


$ (801,897)


$ (716,740)


$ (551,143)


$ (555,303)


$ (1,295,850)


$ (1,052,719)

Plan Fiduciary Net Position as a

Percentage of Total Pension Liability

120.45%

118.06%

113.51%

114.47%

142.92%

131.14%

Covered Payroll**

$ 1,053,876

$ 895,351

$ 787,576

$ 880,740

$ 941,185

$ 824,054

Net Pension Liability as a Percentage of Covered Payroll


0.00%


0.00%


0.00%


0.00%


0.00%


0.00%


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Honorable Mayor and City Council City of Williston

Williston, Florida


MANAGEMENT LETTER


Financial Condition and Management

Sections 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 has 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 the 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 non-compliance 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 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, State, and other granting agencies, the Mayor and Council Members, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.


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We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extended to us during the course of our audit. Please let us know if you have any questions or comments concerning this letter, our accompanying reports, or other matters.


June 23, 2020

Ocala, Florida

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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES‌


Honorable Mayor and City Council City of Williston

Williston, Florida


We have examined the City of Williston’s (the City) compliance with the requirements of Section 218.415, Florida Statutes, with regards to the City’s investments during the year ended September 30, 2019. Management is responsible for the City’s compliance with those requirements. Our responsibility is to express an opinion on the City’s compliance 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 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 an assessment of the risks of material non-compliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.


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 aforementioned requirements during the fiscal year ended September 30, 2019.


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This report is intended solely for the information and use of the Florida Auditor General, the Mayor and Council Members, and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties.


June 23, 2020

Ocala, Florida



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