Fire commissioners approve annual audit
The Captiva Island Fire Control District’s commission signed off on the prior fiscal year’s audit at its recent meeting, as well as updated the district’s reserves and their allocation of unassigned funds.
At the June 15 meeting, the commissioners voted unanimously 3-0 to approve a resolution accepting the financial statements for the district’s fiscal year 2019-20 as audited and prepared by the firm CliftonLarsonAllen. Prior to the vote, principal Chris Kessler with the firm presented the final report.
“Our audit had no issues. There were no findings,” he told the commission.
“It had no significant findings,” Kessler added. “There were no material adjustments.”
He began by covering the financial statements and analysis and a summary of activity for the year. Kessler explained that the figures take into consideration the full accrual, including debt like long-term capital assets, pension liability and other post-employment benefits, so it reflects negative liability.
Because of that, he directed the commissioners to the general fund analysis.
“This is how you all maintain your books and records throughout the year,” Kessler said. “What are the resources we have? That’s really what you want to look at when judging the health of the district.”
In comparing the budget versus actual numbers, the district’s revenues increased slightly over the previous year and the district was under budget. It saw a $322,740 increase in its general fund.
“Pretty spot on from a budget standpoint,” he said.
“Overall, you look at the results, it’s positive here for you all,” Kessler added. “There are five districts in the area that did not have the same positive results.”
Commissioner Jeffrey Brown questioned the liabilities and impact.
Kessler explained that the pension plan — which shifted from the state’s financials to districts’ financials about seven years ago — shows a negative impact of $468,860. In addition, the district’s net pension liability was about $2.9 million last year and has now increased to about $3.3 million.
He noted that no financial institution or such, though, views that negatively.
Commissioner Sherrill Sims thanked Kessler for the breakdown.
“Thank you for clarifying the numbers,” she said. “That scared me a little.”
Kessler pointed out the firm’s discussions with the commission last year for the audit, just as the pandemic was hitting, and the concerns that there would be a sharp change in terms of taxes.
“There really wasn’t a change in taxes coming in,” he said, referring to the district. “(But) we’re still advising to still kind of have in the back of your heads that conservativeness moving forward.”
“The likelihood is everything’s going to be fine,” Kessler added.
Also as part of the audit, CliftonLarsonAllen provided some disclosures or recommendations for consideration, one of which covered the possible refinancing of the lease for the fire station building. The firm also touched on the district’s unassigned fund balance, advising it to allocate the monies.
“You don’t want to just accrue funds and have it sitting around,” he said.
Fire Chief Jeff Pawul reported that the commission would be addressing that in the meeting.
FUND BALANCE POLICY, RESERVES
On the subject of the district’s unassigned fund balance pointed out by the firm, Pawul presented commissioners with a proposal to adopt an amendment to the existing fund balance policy that would provide for additional fund balance reserves. It would allocate 20 percent of the unassigned fund.
“We budgeted it this year at 21 percent,” Pawul said. “I’ve moved it to 20 percent.”
He noted that the commission had decided 17 percent was not enough the prior year and raised it.
Funding would be assigned as: $300,000 for a Contingency/Disaster Reserve; $80,000 for a Post Employment Health Reserve; $50,000 for a Cancer Reserve; $40,000 for an Equipment Replacement Reserve; and $50,000 for a Future Retirement Liabilities Reserve — all established as of Sept. 30.
Pawul pointed out that three of the reserve funds have been budgeted for in the current year, with set dollar amounts; however, they have not been put into the district’s policies under the fund balance.
A motion to approve the resolution to adopt the amendment to the fund balance policy passed 3-0. Commissioners next approved a resolution 3-0 to adopt the dollar amounts per the new policy.
IN OTHER NEWS
– The commission voted 3-0 to approve an updated Memorandum of Understanding with the Lee County Commission that outlines the requirements to participate in the employer-sponsored plans. It implements an administration fee equal to 1 percent of the total insurance costs, effective in 2022.
Prior to the vote, Pawul explained that the county is creating a monthly administrative fee per employee of 1 percent. At about $19 each for 14 employees, the annual increase is about $3,192.
– The commission voted 3-0 for a resolution to approve of the disposal of capital assets no longer in service, which includes the Verizon signal booster, Motorola radios and 2015 Chevrolet Tahoe.
On a similar note, Pawul reported that the new Ford Expedition that the district ordered as a replacement for the Tahoe has arrived. It was on hold for computer chips until October, but just came in. Getting outfitted with lighting and radios next, he expected the district to get it this week.
– The district responded to 53 calls in May.
“So we’re still trending in one of the busier years,” Pawul said.
To reach TIFFANY REPECKI / trepecki@breezenewspapers.com, please email