Village of Tequesta receives clean audit; net position rises to $63.2 million

The Village of Tequesta received an unmodified (clean) audit opinion for the fiscal year ending Sept. 30, 2025, the auditor told the council at its April 9 meeting. The firm’s managing partner said the village’s net position increased by about $7.8 million from the prior year, bringing the village-wide total net position to approximately $63.2 million, and that the compliance ("yellow book") report contained no current-year findings.

That clean opinion, the managing partner said, reflects the finance team's preparation and cooperation during the audit process. "We have expressed an unmodified or clean opinion," the presenter said, and added that required communications and disclosures were included in the auditors' discussion and analysis in the report.

Why it matters: council members probed how the village’s fund balance and pension funding compared with recommendations and other municipalities. The auditor said the village’s general fund balance—about $10.1 million, representing roughly 214 days (about seven months) of general-fund expenditures—is a strong position for a municipality in Florida, where larger reserves are often prudent given storm risk. The auditor also reported the village’s pension trust funds combined for an increase in position of $5.6 million and said the plans were more than 100% funded at year-end.

Council questions: elected officials asked whether the reserve level was higher than recommended and whether the village should move money into a capital projects fund or keep it in the general fund. The auditor said governments sometimes move budgeted funds into a capital-projects fund in advance of construction, but that holding funds for future capital needs is a prudent alternative to borrowing frequently.

On pensions, the auditor noted actuarial assumptions drive required contributions and that recent actuarial changes (lower discount or assumption rate and updated mortality assumptions) have altered the plan trajectories. "Being in an overfunded position should reduce required contributions in the future, but that is up to state law and the actuary to determine," the auditor said.

Next steps: the village manager and finance staff will continue routine disclosures and will make the annual comprehensive financial report available with the agenda materials as usual. Council thanked the finance and audit teams for transparency and work on the report; no formal action beyond acceptance and discussion was required at this meeting.

Sources: presentation of the annual comprehensive financial report and council Q&A during the April 9, 2026 Village of Tequesta council meeting.