ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA  FINANCIAL REPORT 
FOR THE FISCAL YEAR ENDED  
SEPTEMBER 30, 2024 

 

 

 

 

 

 

 

 

 
 
ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA  
  
 	TABLE OF CONTENTS  
  
  	Page 
 
INDEPENDENT AUDITOR’S REPORT 	1-2 
 	 
MANAGEMENT’S DISCUSSION AND ANALYSIS 	3-7 
 	 
BASIC FINANCIAL STATEMENTS 	 
    Government-wide Financial Statements: 	 
	 	Statement of Net Position 	8 
	 	Statement of Activities 	9 
 	Fund Financial Statements: 	 
 	 	Balance Sheet – Governmental Fund 	10 
 	 	Reconciliation of the Balance Sheet – Governmental Funds  
 	 	 	to the Statement of Net Position 	11 
 	 	Statement of Revenues, Expenditures and Changes in Fund Balances – 
 	 	 	Governmental Fund 	12 
 	 	Reconciliation of the Statement of Revenues, Expenditures and Changes in 
 	 	 	Fund Balances of Governmental Funds to the Statement of Activities 	13 
 	 	Statement of Net Position – Proprietary Funds 	14 
 	 	Statement of Revenues, Expenses and Changes in Net Position – 
 	 	 	Proprietary Funds 	15 
	Statement of Cash Flows – Proprietary Funds 	16-17 
 	Notes to the Financial Statements 	18-30 
 	 
REQUIRED SUPPLEMENTARY INFORMATION 	 
     Schedule of Revenues, Expenditures and Changes in Fund Balance – 
  Budget and Actual – General Fund 	31      Notes to Required Supplementary Information 32 
OTHER INFORMATION 	 
	 Data Elements required by FL Statute 218.39 (3) (c) 	    33 
 	 
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 	34-35 
 
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS            
    OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) 
    OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA    	                                     	36 
 	 
MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL  
     OF THE STATE OF FLORIDA 	      	37-38 
 	     
   1001 Yamato Road ▪ Suite 301 
   Boca Raton, Florida 33431 
   (561) 994-9299 ▪ (800) 299-4728 
   Fax (561) 994-5823 
   www.graucpa.com 

INDEPENDENT AUDITOR’S REPORT 
 
To the Board of Supervisors  
St. Lucie West Services District 
St. Lucie County, Florida 
 
Report on the Audit of the Financial Statements 
Opinions 
 
We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of St. Lucie West Services District, St. Lucie County, Florida (the “District”) as of and for the fiscal year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. 
 
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2024, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. 
Basis for Opinions 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 
Responsibilities of Management for the Financial Statements 
The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 
Auditor’s Responsibilities for the Audit of the Financial Statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.  

 
In performing an audit in accordance with GAAS, we:  
•	Exercise professional judgment and maintain professional skepticism throughout the audit.  
•	Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. 
•	Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. 
•	Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. 
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.  
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 
Other Information Included in the Financial Report 
Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.  
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2025, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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 District’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 District’s internal control over financial reporting and compliance. 
 
June 6, 2025 
 
MANAGEMENT’S DISCUSSION AND ANALYSIS 
 
Our discussion and analysis of St. Lucie West Services District, St. Lucie County, Florida’s (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2024.  Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements themselves.  
 
FINANCIAL HIGHLIGHTS 
 
•	The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $71,087,152.  
 
•	The change in the District’s total net position in comparison with the prior fiscal year was $3,697,208, an increase.  The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section. 
 
•	At September 30, 2024, the District’s governmental funds reported combined ending fund balances of $4,466,358, an increase of $125,175 in comparison with the prior year. The total fund balance is restricted for debt service and capital projects, assigned for renewal and replacement and subsequent year’s expenditures, and the remainder is unassigned fund balance which is available for spending at the District’s discretion. 
 
OVERVIEW OF FINANCIAL STATEMENTS 
 
This discussion and analysis are intended to serve as the introduction to the District’s basic financial statements.  The District’s basic financial statements are comprised of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements.  This report also contains other supplementary information in addition to the basic financial statements themselves. 
 
Government-Wide Financial Statements 
 
The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances in a manner similar to a private-sector business. 
 
The statement of net position presents information on all the District’s assets, deferred outflows of resources and liabilities, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. 
 
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. 
 
Both of the government-wide financial statements distinguish functions of the District that are principally supported by assessments and stormwater fees (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the District include general (management), and maintenance and operations. The business-type activities of the District include the Utility (water and sewer) operation.   
 
Fund Financial Statements 
 
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.  The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has two fund categories: governmental and proprietary funds. 
 
OVERVIEW OF FINANCIAL STATEMENTS (Continued) 
 
Governmental Funds 
 
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements. 
 
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions.  Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 
 
The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general, water management debt service, and water management capital projects funds, all of which are considered to be major funds.  
 
The District adopts an annual appropriated budget for its general fund.  A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. 
 
The District also adopts an annual operating budget for the utility fund. 
 
Proprietary Fund 
 
The District maintains one type of proprietary fund, an enterprise fund.  An enterprise fund is used to report the same function presented as business-type activities in the government-wide financial statements. The District uses an enterprise fund to account for the operations of the water and sewer utility services within the District.   
 
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.   
 
Notes to the Financial Statements 
 
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.   
 	 
GOVERNMENT-WIDE FINANCIAL ANALYSIS  
 
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.  In the case of the District, assets plus deferred outflows of resources exceeded liabilities at the close of the most recent fiscal year.  
 
Key components of the District’s net position are reflected in the following table: 
 
NET POSITION
SEPTEMBER 30,

Current and other assets	$       3,657,053	$      2,309,430	$      6,639,134	$       2,498,636	$    10,296,187	$      4,808,066	
Restricted assets	         1,191,239	        2,531,624	      12,319,193	       15,379,058	      13,510,432	      17,910,682	
Capital assets, net of depreciation	       37,424,810	      39,022,970	      40,893,467	       40,481,456	      78,318,277	      79,504,426	
Total assets	       42,273,102	      43,864,024	      59,851,794	       58,359,150	    102,124,896	    102,223,174	
Deferred outflows of resources	             40,018	             80,036	           216,345	           245,612	           256,363	           325,648	
Current liabilities	           420,687	           559,070	        1,099,124	           908,967	        1,519,811	        1,468,037	
Long-term liabilities	         5,442,010	        7,642,051	      24,332,286	       26,048,790	      29,774,296	      33,690,841	
Total liabilities
Net position	         5,862,697	        8,201,121	      25,431,410	       26,957,757	      31,294,107	      35,158,878	
Net investment in capital assets	       32,282,958	      31,699,904	      16,819,812	       14,722,068	      49,102,770	      46,421,972	
Restricted 	           912,049	           796,086	      11,751,671	       14,764,194	      12,663,720	      15,560,280	
Unrestricted	         3,255,416	        3,246,949	        6,065,246	         2,160,743	        9,320,662	        5,407,692	
         Total net position	$     36,450,423	$     35,742,939	$    34,636,729	$     31,647,005	$    71,087,152	$    67,389,944	

2024

2023

2024

2023

2024

2023

	Governmental activities	Business-type activities	Total

The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding.  These assets are used to provide services to residents; consequently, these assets are not available for future spending.  Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 
 
The restricted portion represents funds set aside for bond covenants related to debt service, capital projects and other, renewal and replacement and surplus and rate stabilization.  
 
The results of this year’s operations for the District as a whole are reported in the statement of activities.  The net position of the District’s governmental activities increased $707,484 and the net position of the businesstype activities increased $2,989,724 in comparison with the prior year. 
 
The District’s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which ongoing program revenues exceeded the cost of operations and depreciation expense.  
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) 
 
Key elements of the change in the District’s net position are reflected in the following table: 
CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
	Governmental activities	Business-type activities	Total
2024	2023	2024	2023	2024	2023	
$       5,988,200	$      5,676,089	$    11,040,857	$     10,549,480	$    17,029,057	$    16,225,569	
           132,601	           112,581	           706,998	           438,082	           839,599	           550,663	
             79,580	           154,787	           817,133	           169,929	           896,713	           324,716	
            (14,982)	            (78,723)	             (7,620)	             30,742	           (22,602)	           (47,981)	
         6,185,399	        5,864,734	      12,557,368	       11,188,233	      18,742,767	      17,052,967	
           736,971	           666,507	                  -	                  -	           736,971	           666,507	
         4,517,820	        4,141,582	                  -	                  -	        4,517,820	        4,141,582	
           223,124	           286,018	                  -	                  -	           223,124	           286,018	
                  -	                  -	        8,772,479	         8,213,899	        8,772,479	        8,213,899	
                  -	                  -	           795,165	           851,347	           795,165	           851,347	
         5,477,915	        5,094,107	        9,567,644	         9,065,246	      15,045,559	      14,159,353	
           707,484	           770,627	        2,989,724	         2,122,987	        3,697,208	        2,893,614	
       35,742,939	      34,972,312	      31,647,005	       29,524,018	      67,389,944	      64,496,330	
$     36,450,423	$     35,742,939	$    34,636,729	$     31,647,005	$    71,087,152	$    67,389,944	
 
Revenues:
Program revenues:
Charges for services General revenues:
Investment earnings
Other
    Gain/(loss) on disposal of capital assets
Total revenues Expenses:
Governmental activities:
    General government
Physical environment
    Interest
Business - type activities:
Water and sewer utilities
Interest 
Total expenses
Change in net position
Net position - beginning
Net position - ending
Governmental activities 
 
As noted above, and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2024 was $5,477,915. As in the prior year, the majority of the costs of the Districts governmental activities were paid by program revenues. Program revenues consisted primarily of assessments and stormwater fees for the current and prior year.  
 
Business-type activities 
 
Business-type activities reflect the operations of the water and sewer facilities within the District. The cost of operations is covered primarily by charges to customers.  Expenses increased primarily due to an increase in water and sewer operating and contracting costs.  
 
GENERAL FUND BUDGETING HIGHLIGHTS 
 
An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors.  The general fund budget for the fiscal year ended September 30, 2024 was amended to decrease revenues by ($36,240) and decrease appropriations by ($400,082). Actual general fund expenditures did not exceed appropriations during the current fiscal year. 

CAPITAL ASSETS AND DEBT ADMINISTRATION 
 
Capital Assets  
 
At September 30, 2024, the District had $76,000,317 invested in capital assets for its governmental activities.  In the government-wide financial statements depreciation of $38,575,507 has been taken, which resulted in a net book value of $37,424,810. The District’s business-type activities reported net capital assets of $40,893,467. More detailed information about the District’s capital assets is presented in the notes of the financial statements. 
 
Capital Debt 
 
At September 30, 2024, the District had $5,370,000 in Bonds outstanding for its governmental activities. For business-type activities, the District had Bonds outstanding of $24,290,000. More detailed information about the District’s capital debt is presented in the notes of the financial statements. 
 
ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND OTHER EVENTS 
 
The District anticipates positive account activity trends, and the recent reissuance of Bonds has placed the District in a better financial position. The budget for fiscal year 2025 continues with the five-year forecasting of the District’s financial needs. The District anticipates that the general operations will remain fairly constant, but that cost may increase due to the current high inflation environment. For the utility operations, the number of ERCs is expected to increase in the fiscal year 2025. Even though District staff have practiced efficient budgeting and innovative cost saving measures, the District is increasing utility rates by 9.0% in 2025 and 2026, along with an increase in the Maintenance Non-Ad Valorem Assessment. The increase in revenues will help to offset expenses expected to rise with the current inflationary environment. For the utility operations, it is anticipated that any future growth would come primarily from commercial development with some multifamily growth. The District is continuing to work with the engineer to consider future anticipated capacity requirements for available commercial property and to serve the Reserve CDD. In connection with the District’s future infrastructure maintenance and replacement plan, the District Board has included in the budget an estimate of those anticipated future costs and has assigned a portion of current and future available resources for that purpose. At this time there is an additional utility debt funding of up to $36,000,000 anticipated in the next few years. 
 
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT 
  
This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains.  If you have questions about this report or need additional financial information, contact the St. Lucie West Services District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410. 

 
ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA 
STATEMENT OF NET POSITION 
SEPTEMBER 30, 2024 
 
	Governmental 	Business-type 
Activities	Activities	Total	
$     2,363,414
              7,354
          397,805
          793,434
                 -
       1,286,285
                 -
                 -
       4,594,571      32,830,239
     42,273,102
            40,018
            40,018
          285,655             38,753
            96,279
       2,255,000        3,187,010
       5,862,697
     32,282,958
          912,049
                 -
                 -
                 -
       3,255,416 $    36,450,423	$     6,570,517
                 -
          169,400      12,149,793        1,337,848
      (1,286,285)
           12,319              4,735
       7,580,350      33,313,117
     59,851,794
          216,345
          216,345
          531,602
          398,122
          169,400
       1,765,000      22,567,286
     25,431,410
     16,819,812
       4,799,915
       1,566,330
       1,412,104
       3,973,322
       6,065,246 $   34,636,729	$     8,933,931
              7,354
          567,205      12,943,227        1,337,848
                 -
            12,319
              4,735
     12,174,921
     66,143,356     102,124,896
          256,363
          256,363
          817,257
          436,875
          265,679
       4,020,000      25,754,296      31,294,107
     49,102,770
       5,711,964
       1,566,330
       1,412,104
       3,973,322        9,320,662
$    71,087,152	
ASSETS
Cash and cash equivalents
Investments Restricted assets:
Cash and cash equivalents
Investments
Accounts receivable, net Internal balances
Prepaid items
Other current assets Capital assets:
Nondepreciable
Depreciable, net Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding (debit)
Total deferred outflows of resources
LIABILITIES  
Accounts payable and accrued expenses
Accrued interest payable
Customer deposits
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
NET POSITION
Net investment in capital assets Restricted for:
Debt service
Capital projects and other
Renewal and replacement
Surplus and rate stabilization
Unrestricted
         Total net position

 

 

 
 
See notes to the financial statements

ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA 
STATEMENT OF ACTIVITIES 

Functions/Programs
Primary government:
   Governmental activities:
General government
Maintenance and operations
Interest on long-term debt   Total governmental activities
   Business-type activities:
Water and sewer utilities
Interest on long-term debt   Total business-type activities
  Total 

$           736,971	$               736,971	$                -	$                -	$                - 	
          4,517,820	              2,758,945	       (1,758,875)	                  -	       (1,758,875)	
             223,124	              2,492,284	        2,269,160	                  -	         2,269,160	
          5,477,915	              5,988,200	           510,285	                  -	           510,285	
          8,772,479	            10,216,425	                  -	        1,443,946	         1,443,946	
             795,165	                 824,432	                  -	             29,267	             29,267	
          9,567,644	            11,040,857	                  -	        1,473,213	         1,473,213	
        15,045,559 General revenues:	            17,029,057	           510,285	        1,473,213	         1,983,498	
Investment earnings	           132,601	           706,998	           839,599	
Miscellaneous	             79,580	           817,133	           896,713	
Gain/loss on disposal of capital assets	            (14,982)	              (7,620)	            (22,602)	
      Total general revenues 	           197,199	        1,516,511	        1,713,710 	
Change in net position	           707,484	        2,989,724	         3,697,208	
Net position - beginning	       35,742,939	       31,647,005	       67,389,944	
Net position - ending	$     36,450,423	$     34,636,729	$     71,087,152	

 

 

See notes to the financial statements 
 	 	            	 	 	 	9 

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 
 
Net (Expense) Revenue and Program Revenue	Changes in Net Position

	Charges for 	Governmental 	Business-type 
	Expenses	Services	Activities	Activities	Total

ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA 
BALANCE SHEET 
GOVERNMENTAL FUNDS 
SEPTEMBER 30, 2024 
 
Major Funds

General	Water 
Management 
Debt Service	Water 
Management 
Capital Projects	Total 
Governmental 
Funds	
$    2,363,414             7,354       1,338,592 $    3,709,360	$     397,805
605,604
              -
$  1,003,409	$               -
187,830
                300 $        188,130	$    2,761,219         800,788      1,338,892
$    4,900,899	
$       285,655
               -
          96,279         381,934
               -
               -
        552,619
287,795
      2,487,012
      3,327,426
$    3,709,360	$            -
        52,607
              -
        52,607
       950,802
              -
              -
              -
              -
       950,802
$  1,003,409	$                                -
                 -
                 -
                 -
          188,130
                 -
                 -
          188,130
$        188,130	$      285,655           52,607
          96,279         434,541
        950,802
        188,130
        552,619
        287,795      2,487,012      4,466,358
$    4,900,899	
ASSETS
Cash and cash equivalents
Investments
Due from other funds
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued expenses
Due to other funds
Customer deposits
Total liabilities
Fund balances: Restricted for:
Debt service
Capital projects Assigned:
Renewal and replacement
Subsequent years expenditures
Unassigned
Total fund balances
Total liabilities and fund balances

 

 

 

 

 

 
See notes to the financial statements
 	                             	10 
RECONCILIATION OF BALANCE SHEET - GOVERNMENTAL FUNDS 
TO STATEMENT OF NET POSITION 
SEPTEMBER 30, 2024 
 
Fund balance - governmental funds
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.		$       4,466,358	
Cost of capital assets	   76,000,317		
Accumulated depreciation
Deferred charges on refunding of long-term debt are shown as deferred outflows/inflows of resources in the government-wide financial statements; however, this amount is expensed in the	 (38,575,507)	       37,424,810	
governmental fund financial statements.
Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements.		             40,018	
Accrued interest payable	        (38,753)		
Bonds payable	   (5,370,000)		
Compensated absences	        (72,010)	       (5,480,763)	
Net position of governmental activities		$     36,450,423	

 

 

 

 

 

 

 
See notes to the financial statements 

ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA 
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES  
GOVERNMENTAL FUNDS 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 

Major Funds

General	Water 
Management 
Debt Service	Water 
Management 
Capital Projects	Total 
Governmental 
Funds	
$     1,472,810        2,023,106
           51,977
79,580	$     2,104,114           388,170
           64,392
                 -	$                                -
            16,232
                 -	$   3,576,924      2,411,276         132,601
         79,580	
       3,627,473
501,965
2,989,676
                -
                -
         122,406        3,614,047
           13,426
       3,314,000
$     3,327,426	       2,556,676
           52,607
                 -
          203,552        2,205,000
                 -
       2,461,159
           95,517
          855,285
$        950,802	            16,232
                 -
                 -
                 -
                 -
                 -
            16,232
          171,898
$        188,130	     6,200,381
        554,572      2,989,676
        203,552      2,205,000         122,406      6,075,206
        125,175
     4,341,183
$   4,466,358	
REVENUES
   Special assessments
   Stormwater fees
   Investment earnings
   Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Maintenance and operations Debt service:
Interest expense
Principal expense
Capital outlay
Total expenditures
Excess (deficiency) of revenues             over (under) expenditures
Fund balances - beginning 
Fund balances - ending

 

 

 

 

 

 
 
See notes to the financial statements 
 	                             	         12 
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 
TO THE STATEMENT OF ACTIVITIES 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 
 
Net change in fund balances - total governmental funds 
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures, however, the cost of capital assets is eliminated in the statement of activities and	$        125,175	
capitalized in the statement of net position.
Depreciation of capital assets is not recognized in the governmental fund	         122,406	
statements but is reported as an expense in the statement of activities.
Amortization of deferred outflows/inflows of resources is not recognized in the governmental fund financial statements, but is reported as an expense	     (1,705,584)	
in the statement of activities.
Repayment of long-term liabilities are reported as expenditures in the governmental fund statement but such repayments reduce liabilities in the	          (40,018)	
statement of net position and are eliminated in the statement of activities.
 
Some expenses reported in the statement of activities do not require the use of current financial resources, and, therefore, are not reported as expenditures in governmental funds.	       2,205,000	
Loss on disposal of capital assets	          (14,982)	
Change in compensated absences	            (4,959)	
Change in accrued interest	           20,446	
   Change in net position of governmental activities 	$        707,484	

 

 

 

 

 

 

 

 
See notes to the financial statements 

ST. LUCIE WEST SERVICES DISTRICT 
ST. LUCIE COUNTY, FLORIDA 
STATEMENT OF NET POSITION - PROPRIETARY FUND 
SEPTEMBER 30, 2024 
 Water and 
Sewer Utility 

ASSETS
Current assets:
Unrestricted:		
Cash  and cash equivalents	$      6,570,517	
Accounts receivable, net of allowance for uncollectibles	        1,337,848	
Prepaid expenses	            12,319	
Other Restricted:	              4,735	
Cash and cash equivalents	          169,400	
Investments	      12,149,793	
Total current assets
Noncurrent assets:
Capital assets:	      20,244,612	
Land	        1,200,000	
Building	        1,730,905	
Construction in progress	        6,380,350	
Infrastructure	      63,987,943	
 Equipment and furniture	        3,516,129	
     Less accumulated depreciation	     (35,921,860)	
Total capital assets, net of accumulated depreciation	      40,893,467	
Total noncurrent assets	      40,893,467	
Total assets
DEFERRED OUTFLOWS OF RESOURCES	      61,138,079	
Deferred charges on refunding	          216,345	
Total deferred outflows of resources
LIABILITIES
Current liabilities:	          216,345	
Accounts payable and accrued expenses	          531,602	
Due to other funds
Liabilities payable from restricted assets:	        1,286,285	
Customer deposits 	          169,400	
Current portion of long-term debt	        1,765,000	
Interest payable	          398,122	
Total current liabilities	        4,150,409	
Noncurrent liabilities:	 	
Long-term debt	      22,567,286	
Total noncurrent liabilities Total liabilities
NET POSITION 
Net investment in capital assets Restricted for:
Debt service
Capital projects and other
Renewal and replacement
Surplus and rate stabilization Unrestricted
Total net position 
Total net position and liabilities	      22,567,286       26,717,695
      16,819,812
        4,799,915
        1,566,330         1,412,104
        3,973,322         6,065,246       34,636,729 $    61,354,424	
 
See notes to the financial statements 
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN 
 NET POSITION - PROPRIETARY FUNDS 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 
 
Water and Sewer 
	 	Utility

OPERATING REVENUES
Charges for sales and services:		
Charges for water and sewer services	$         10,158,761	
Late fees	                 78,400	
Bulk water sales	               717,428	
Other	86,268	

Total operating revenues
 
OPERATING EXPENSES	          11,040,857	
Personnel  services	            3,259,766	
Contractual services	               812,058	
Water and sewer operations	2,494,378	
Repairs and maintenance	296,598	
Depreciation 	1,880,412	
Amortization	                 29,267	
Total operating expense	            8,772,479	
Operating income (loss)
 
NON OPERATING REVENUES (EXPENSES)	            2,268,378	
Gain (loss) on disposal of capital asets	                 (7,620)	
Impact fees	               817,133	
Interest revenue	               706,998	
Interest expense	              (795,165)	
Total non operating revenue (expenses)	               721,346	
Change in net position
 		            2,989,724	
Total net position - beginning		31,647,005	
Total net position - ending 

 

 

 

 
 	$         34,636,729

STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 

Water and Sewer Utility

CASH FLOWS FROM OPERATING ACTIVITIES:
	Receipts from customers and users	$   10,934,449
Payments to suppliers of goods and services	     (6,614,484) Net cash provided (used) by operating activities	      4,319,965
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
	Due to/from other funds	            (2,474)
	Net cash provided (used) by noncapital financing activities	            (2,474)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
	Impact fees	         817,133
Purchases of capital assets     (2,300,044) Principal paid on debt	     (1,715,000)
	Interest paid on debt	        (823,257)
Net cash provided (used) by capital and related 
	  financing activities	     (4,021,168)
CASH FLOWS FROM INVESTING ACTIVITIES: 
	Purchase of investments	      3,040,615
	Interest earnings	         706,998
	Net cash provided (used) by investing activities	      3,747,613
	   Net increase (decrease) in cash and cash equivalents	      4,043,936
	Cash and cash equivalents - October 1	2,695,981
	Cash and cash equivalents - September 30	$     6,739,917
Reported as:
	Cash	$     6,570,517
	Restricted cash	         169,400
$     6,739,917

 
 
(Continued) 

 

 

STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS  FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 
(Continued) 
 
Water and 
Sewer Utility

Reconciliation of operating income (loss) to net cash   provided (used) by operating activities		
Operating income (loss)
Adjustments to reconcile operating income (loss) to net cash provided (used) by Operating Activities:	$     2,268,378	
Depreciation and amortization (Increase)/Decrease in:	1,909,680	
Accounts receivables	(87,158)	
Prepaids and deposits Increase/(Decrease) in:	12,320	
Accounts payable and accrued expenses	         237,499	
Customer deposits	(19,250)	
Compensated absences	(1,504)	
	Total adjustments 	2,051,587
	Net cash provided (used) by operating activities	$     4,319,965

 

 

 

 

 

 

 

 

 

 

ST. LUCIE COUNTY, FLORIDA  
NOTES TO FINANCIAL STATEMENTS  
 
NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY 
 
St. Lucie West Services District (the “District”) was created on November 21, 1989, pursuant to Chapter 190.005, Florida Statutes by which Florida Land and Water Adjudicatory Commission granted the petition of the original development corporation and adopted Rules 42-I.001, I.002, and I.003, establishing the St. Lucie West Services District. The District was established for the purpose of, among other things, construction of and/or acquiring water management and control, water supply, sewer, wastewater management, bridges or culverts, District roads, parks and recreational facilities, security facilities, control and elimination of mosquitoes and other arthropods and landscaping related to recreational amenities, roads, and surface water management, and related improvements located within and/or without the boundaries of St. Lucie West Services District.  
 
The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by the landowners and qualified electors residing within the District, and are elected on a rotating basis for terms of four years. The District was created under Chapter 190 of the Florida Statutes and operates within the criteria established by Chapter 190.The Board of Supervisors of the District exercise all powers granted to the District pursuant to Florida Statutes. 
 
The Board has the final responsibility for: 
1.	Assessing and levying assessments. 
2.	Approving budgets. 
3.	Exercising control over facilities and properties. 
4.	Controlling the use of funds generated by the District. 
5.	Approving the employment of the general manger. 
6.	Financing improvements. 
 
The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements.  Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.  
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
Government-Wide and Fund Financial Statements 
The basic financial statements include both government-wide and fund financial statements. 
 
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the District.  For the most part, the effect of interfund activity has been removed from these statements.   Governmental activities, which normally are supported by assessments and general revenues, are reported separately from businesstype activities, which rely to a significant extent on fees and charges for support.   
 
Government-Wide and Fund Financial Statements (Continued) 
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues.  Direct expenses are those that are clearly identifiable with a specific function or segment.  Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment (Operatingtype special assessments for maintenance and debt service are treated as charges for services.); and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. 
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 
 
Measurement Focus, Basis of Accounting and Financial Statement Presentation 
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting.  Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.  Assessments are recognized as revenues in the year for which they are levied.  Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Unbilled service revenue is accrued in the enterprise funds. 
 
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting.  Revenues are recognized as soon as they are both measurable and available.  Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.  For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.  Expenditures are recorded when a liability is incurred, as under accrual accounting.  However, debt service expenditures are recorded only when payment is due. 
 
Assessments 
Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1.  For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding.  Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.  
 
Assessments, stormwater fees, licenses and permits, grant revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized in revenues for the current period.  
 
The District reports the following major governmental funds: 
 
General Fund 
The general fund is the general operating fund of the District.  It is used to account for all financial resources except those required to be accounted for in another fund. 
 
Water Management Debt Service Fund 
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt. 
 
Water Management Capital Projects Fund 
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District. 
 
The District reports the following major proprietary fund: 
 
Water and Sewer Fund 
The water and sewer fund accounts for the water and sewer operations of the District that are financed and supported primarily by user charges. 
 
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 District’s enterprise fund are charges to customers for sales and services.  Operating expenses of the enterprise fund 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. 
 	 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 
 
Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are internal receivable and payable balances between governmental and business-type activities. 
 
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. 
 
Assets, Liabilities and Net Position or Equity 
 
Restricted Assets  
Restricted assets in the enterprise funds consists primarily of amounts restricted for debt service, capital projects, surplus and rate stabilization, renewal and replacement which have been restricted by the bond covenants or other contractual restrictions. Restricted assets in the governmental funds consist of funds set aside to comply with bond covenants or other contractual restrictions.  
 
Deposits and Investments 
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing). 
 
The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes.  The District may invest any surplus public funds in the following: 
 
a)	The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; 
b)	Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; 
c)	Interest bearing time deposits or savings accounts in qualified public depositories; 
d)	Direct obligations of the U.S. Treasury. 
 
Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due.    
 
The District records all interest revenue related to investment activities in the respective funds.  Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.     
 
Inventories and Prepaid Items 
Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. 
 
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 
 
Interfund Receivables and Payables 
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of fiscal year are referred to as either “interfund receivables/payables” or “advances to/from other funds”. All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between governmental activities and business-type activities for internal borrowing are reported in the government-wide statements as “internal balances”.   

 
 
Receivables 
Accounts receivable and assessments receivable are shown net of an allowance for uncollectible amounts.  These receivables will be recognized as revenue as they are collected. The Water and Sewer Utility Fund receivables are due from commercial and residential customers within the District. The District’s policy for collections is limited to collecting security deposits, the right to discontinue service and to place liens on property.  For the Water and Sewer Fund, accounts receivable outstanding in excess of 120 days comprise the allowance.   
 
Capital Assets 
Capital assets, which include property, water and sewer improvements, machinery and equipment and infrastructure (roads, sidewalks, etc.) are reported in the applicable governmental or business-type activities. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years.  Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.  Donated capital assets are recorded at acquisition value at the date of donation. 
 
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.  Major outlays for capital assets and improvements are capitalized as projects are constructed. 
 
Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: 
Assets 	Years 	
Infrastructure and buildings  	10 – 50 	
Equipment 	5 – 30 	
 
In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.  
 
Refundings of Debt    
For current refundings and advance refundings resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources/deferred inflow of resources and recognized ratably as a component of interest expense over the remaining life of the old debt or the life of the new debt, whichever is shorter. In connection with the refunding, $40,018 and $28,807 was recognized as a component of interest expense in the current fiscal year for the governmental and business-type activities, respectively.   
 
Unearned Revenue 
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.    
 
Compensated Absences 
It is the District’s policy to permit employees to accumulate earned but unused sick leave and vacation leave benefits. All sick and vacation leave is accrued when earned in the government-wide and proprietary 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. Liability for accrued compensated absences of the governmental activities is not reported in the balance sheet of the governmental funds and, accordingly, represents a reconciling item between the fund and governmentwide presentations. Payments are generally paid out of the general fund.  

 
Long-Term Obligations 
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position.  Bond premiums and discounts are deferred and amortized over the life of the Bonds using the straight-line method.  Bonds payable are reported net of applicable premiums or discounts.  Bond issuance costs are expensed when incurred.   
 
In the fund financial statements, governmental fund types recognize Bond premiums and discounts, as well as issuance costs, during the current period.  The face amount of debt issued is reported as other financing sources.  Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.  Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 
 
Deferred Outflows/Inflows of Resources   
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 
 
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 
 
Fund Equity/Net Position 
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.  Assignments of fund balance represent tentative management plans that are subject to change. 
 
The District can establish limitations on the use of fund balance as follows:  
 
Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally.  Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.   
 
Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget.  Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.   
 
The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.   

 
Fund Equity/Net Position (Continued) 
Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted.  Net investment in capital assets represents net position related to infrastructure and property, plant and equipment.  Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.   
 
Other Disclosures 
 
Use of Estimates 
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period.  Actual results could differ from those estimates.  
 
NOTE 3 – BUDGETARY INFORMATION 
 
The District is required to establish a budgetary system and an approved Annual Budget.  Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund.  All annual appropriations lapse at fiscal year-end. 
 
The District follows these procedures in establishing the budgetary data reflected in the financial statements. 
 
a)	Each year the General Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.  
b)	Public hearings are conducted to obtain public comments. 
c)	Prior to October 1, the budget is legally adopted by the District Board. 
d)	All budget changes must be approved by the District Board. 
e)	The budgets are adopted on a basis consistent with generally accepted accounting principles. 
f)	Unused appropriation for annually budgeted funds lapse at the end of the year. 
 
The District also prepares annual operating budgets for the water and sewer utility fund. 
 
NOTE 4 – DEPOSITS AND INVESTMENTS 
 
Deposits 
The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer.  Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held.  The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280.  In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. 

NOTE 4 – DEPOSITS AND INVESTMENTS (Continued) 
 
Investments 
The District’s investments were held as follows at September 30, 2024: 
 
	Investment	Amortized cost	Credit Risk	Maturities

	US Bank Commercial Paper Manual Sweep	$          605,604	A-1	N/A
	US Bank Mmkt 5 - Ct	        12,344,977	Not Available	Not Available
	         Total Investments	$      12,950,581

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.  This is measured by the assignment of a rating by a nationally recognized statistical rating organization.  Investment ratings by investment type are included in the preceding summary of investments.   
 
Concentration risk – The District places no limit on the amount the District may invest in any one issuer.   
 
Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.   
 
However, the Bond Indenture limits the type of investments held using unspent proceeds. 
 
Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements.  The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.  
 
These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows: 
 
•	Level 1:  Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access; 
•	Level 2:  Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and, 
•	Level 3:  Investments whose inputs are unobservable. 
 
The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs. 
 
Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District’s investments have been reported at amortized cost above.    
 
NOTE 5 – RESTRICTED CASH 
 
Restricted cash in the water and sewer fund at September 30, 2024 were held as follows: 
 
Restricted investments:		
Debt service reserve	$       2,524,602	
Debt service	         2,673,435	
Renewal and replacement	         1,412,104	
Rate stabalization	            636,492	
Water and sewer connection	         1,566,330	
Surplus 	         3,336,830
$     12,149,793	

 	 
NOTE 6 – INTERFUND RECEIVABLES AND PAYABLES  
 
Interfund receivables and payables at September 30, 2024 were as follows:  
 
	Governmental Funds	Receivable	 	Payable

   General 	$     1,338,592	$               -	
   Debt service	                 -	           52,607	
   Capital projects 
Proprietary Funds	300	                -	
   Water and sewer	                 -	       1,286,285	
          Total 	$     1,338,892	$     1,338,892	

The outstanding balances between funds result primarily from the time lag between the dates that transactions are recorded in the accounting system and payments between funds are made.  
 
NOTE 7 – RECEIVABLES 
 
Accounts receivable in the water and sewer fund are reported net of uncollectible amounts. Total accounts receivable and uncollectible amounts at September 30, 2024 are as follows: 
 
Water and Sewer
Utility Fund

Gross billed accounts receivable	$             591,955	
Gross unbilled accounts receivable	800,893	
Uncollectibles 	               (55,000)	
Net receivable	$          1,337,848	

NOTE 8 – CAPITAL ASSETS 
 
Capital asset activity for governmental activities for the fiscal year ended September 30, 2024 was as follows:  
 
	Beginning 	Ending        
Balance	Additions	Reductions	Balance	
$       4,594,569
         4,594,571
           934,631        68,267,529          2,195,898        71,398,058	$               -
                -
                -
                -
                -
         122,406
         122,406	$                                  -
                  -
                 - 
                  -
         (114,718) 
         (114,718) 	$       4,594,569
         4,594,571
            934,631        68,267,529          2,203,586        71,405,746	
             97,117        35,395,254          1,477,288        36,969,659
       34,428,399
 
$     39,022,970	           31,154        1,528,144          146,286        1,705,584
      (1,583,178)
$    (1,583,178)	                  -
                  -
           (99,736)
           (99,736)
           (14,982)
$          (14,982)	            128,271        36,923,398          1,523,838        38,575,507
       32,830,239
 
$      37,424,810	
Governmental activities
Capital assets, not being depreciated Land 
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated
    Buildings
Infrastructure 
Equipment and furniture
Total capital assets, being depreciated
Less accumulated depreciation for:
    Buildings
Infrastructure 
Equipment and furniture
Total accumulated depreciation
Total capital assets, being depreciated, net
 
Governmental activities capital assets, net

 
NOTE 8 – CAPITAL ASSETS (Continued) 
 
Depreciation expense was charged to function/programs as follows: 
General government	$         177,440	
Maintenance and operations	        1,528,144	
 	$      1,705,584	

Capital asset activity for business-type activities for the fiscal year ended September 30, 2024 was as follows:  
	Beginning 	Ending        
Balance	Additions	Reductions	Balance	
$       1,200,000          4,889,636
         6,089,636
         1,719,817        63,875,476          2,830,354        68,425,647
            145,077        31,916,059          1,972,691        34,033,827	$                -
        1,603,180
        1,603,180
            11,088           112,467
          729,313
          852,868
            56,903         1,695,915           171,133         1,923,951	$                 -
           (112,466)
           (112,466)
                   -
                   -
            (43,538)
            (43,538)
                   -
                   -
            (35,918)
            (35,918)	$       1,200,000
         6,380,350
         7,580,350
         1,730,905        63,987,943          3,516,129        69,234,977
           201,980        33,611,974          2,107,906        35,921,860	
       34,391,820
 
$     40,481,456	       (1,071,083)
$         532,097	              (7,620) $         (120,086)	       33,313,117
 
$     40,893,467	
Business-type Activities
Capital assets, not being depreciated
Land 
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated
Buildings
Infrastructure/Improvements
Equipment and furniture
Total capital assets, being depreciated
Less accumulated depreciation for:
    Buildings
Infrastructure/Improvements
Equipment and furniture
Total accumulated depreciation
Total capital assets, being depreciated, net
 
Business-type activities capital assets, net
 
NOTE 9 – LONG-TERM LIABILITIES  
 
Utility Revenue Refunding, Series 2011 
On October 25, 2011, the District issued $24,000,000 of Utility Revenue Refunding Bonds, Series 2011 due on October 1, 2031 with a fixed interest rate of 2.85%. Interest is to be paid semiannually on each April 1 and October 1.  Principal on the Bonds is to be paid serially commencing October 1, 2012 through October 1, 2031.  The source of repayment or security for the Series 2011 Bonds is a pledge of certain utility revenues collected by the District. 
 
The Series 2011 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established a debt service reserve requirement as well as other restrictions. The District was in compliance with the requirements at September 30, 2024. See bond rate adjustment below. 

 
Special Assessment Refunding, Series 2013 
On April 24, 2013, the District issued $19,025,000 of Water Management Benefit Special Assessment Refunding Bonds, Series 2013 due on May 1, 2025 with a fixed interest rate of 2.44%. Interest is to be paid semiannually on each May 1 and November 1.  Principal on the Bonds is to be paid serially commencing May 1, 2014 through May 1, 2025.   
 
The Series 2013 Bonds are subject to redemption at the option of the District prior to their maturity. The Bonds are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.  
 
The Bond Indenture established a debt service reserve requirement as well as other restrictions. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2024.  
 
Utility Revenue Refunding, Series 2013 
On April 24, 2013, the District issued $5,470,000 of Utility Revenue Refunding Bonds, Series 2013, due on October 1, 2032 with a fixed interest rate of 2.43%. Interest is to be paid semiannually on each April 1 and October 1. Principal on the Bonds is to be paid serially commencing October 1, 2013 through October 1, 2032.  The source of repayment or security for the Series 2013 Bonds is a pledge of certain utility revenues collected by the District. 
 
The Series 2013 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established a debt service reserve requirement as well as other restrictions. The District was in compliance with the requirements at September 30, 2024. See bond rate adjustment below. 
 
Utility Revenue Refunding, Series 2014 
In August 2014, the District issued $12,025,000 of Utility Revenue Refunding Bonds, Series 2014, due on October 1, 2035 with a fixed interest rate of 3.6%. Interest is to be paid semiannually on each April 1 and October 1. Principal on the Bonds is to be paid serially commencing October 1, 2014 through October 1, 2035.  The source of repayment or security for the Series 2014 Bonds is a pledge of certain utility revenues collected by the District. 
 
The Series 2014 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established a debt service reserve requirement as well as other restrictions. The District was in compliance with the requirements at September 30, 2024. See bond rate adjustment below. 
 
Stormwater Utility Revenue Bonds, Series 2014 
On December 22, 2014, the District issued $4,810,000 of Stormwater Utility Revenue Bonds, Series 2014 due on February 1, 2030 with a fixed interest rate of 3.05%. The Bonds were issued to for the purpose of acquiring land from Martin Memorial. The land was purchased with the intent to put a retainage pond on the land for excess storm water storage. Interest is to be paid semiannually on each February 1 and August 1.  Principal on the Bonds is to be paid serially commencing February 1, 2015 through February 1, 2030.   
 
The Series 2014 Bonds are subject to redemption at the option of the District prior to their maturity. The Bond Indenture established a debt service reserve requirement as well as other restrictions. The District and the City of Port St. Lucie have entered into an agreement whereby the City will transfer approximately $400,000 of Stormwater utility fees to the District to cover the debt service on the Bonds. The District was in compliance with the requirements at September 30, 2024. 
 
Capital Improvement Bonds, Series 2021 
In October 2021, the District issued $1,685,000 of Capital Improvement Bonds, Series 2021, due on May 1, 2026 with a fixed interest rate of 1.56%. Interest is to be paid semiannually on each November 1 and May 1. Principal on the Bonds is to be paid serially commencing May 1, 2023 through May 1, 2026.   

 
 
Capital Improvement Bonds, Series 2021 (Continued) 
The Series 2021 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established restrictions. The District was in compliance with the requirements at September 30, 2024. 
 
Bond Rate Adjustment 
During fiscal year 2018 the federal government reduced the corporate tax rate from 35% to 21%. This triggered a clause in the Series 2011 Utility Bond, the Series 2013 WMB Bond, and the Series 2014 Utility Bond whereas the interest rate became adjusted upwards. This resulted in the following rate increases: the Utility Bond Series 2011 went from 2.85% to 3.46%, the WMB Bond Series 2013 went from 2.44% to 2.97%, and the Utility Bond Series 2014 went from 3.61% to 4.17%. All of these Bonds are held as private placements with SunTrust (STING). Due to the Utility Series 2014 rate change being higher than current market rates, the District negotiated a rate modification that resulted in a reissuance of the Utility Bond Series 2014, now the Utility Bond Series 2014 R-1. The reissuance, dated October 12, 2018, lowered the rate from 4.17% to 3.30%. The other Bonds remained at their adjusted rates. 
 
Long-term debt activity 
Changes in long-term liability activity for the fiscal year ended September 30, 2024 were as follows: 
Beginning 
Balance	Additions	Reductions	Ending        
Balance	Due Within 
One Year	
$       3,570,000
         2,440,000
         1,565,000
         7,575,000              67,051	$               -
                -
                -
                -
             4,959	$       (1,765,000)            (315,000)
           (125,000)         (2,205,000)
                   -	$       1,805,000
         2,125,000
         1,440,000          5,370,000              72,010	$     1,805,000          325,000
         125,000        2,255,000
                -	
$       7,642,051	$           4,959	$       (2,205,000)	$       5,442,010	$     2,255,000	
Beginning 
Balance	 
Additions	Reductions	Ending        
Balance	Due Within 
One Year	
$     12,460,000          3,130,000        10,415,000
       26,005,000              43,790	$               -
                -
                -
                -	$       (1,235,000)            (280,000)
           (200,000)         (1,715,000)                (1,504)	$     11,225,000          2,850,000        10,215,000
       24,290,000              42,286	$     1,270,000          285,000
         210,000        1,765,000
                -	
$     26,048,790	$               -	$       (1,716,504)	$     24,332,286	$     1,765,000	
Governmental activities Bonds payable:
Series 2013
Series 2014
Series 2021
Total bonds payable
Compensated absences
Total
Business-type activities Bonds payable:
Series 2011
Series 2013
Series 2014
Total bonds payable
Compensated absences
Total
 
At September 30, 2024, the scheduled debt service requirements on the long-term debt were as follows: 
 
	Year ending 	Governmental Activities
September 30:	 Principal 	 Interest 	Total	
2025
2026
2027
2028
2029
2030
Total	$       2,255,000
         1,645,000             350,000
            360,000
            370,000
            390,000 $       5,370,000	$          139,251              73,646
             42,620
             31,799
             20,587
               6,000 $          313,903	$       2,394,251          1,718,646             392,620
            391,799
            390,587
            396,000 $       5,683,903	

 

 
Long-term debt activity (Continued) 
 
	Year ending 	Business-type Activities
September 30:	 Principal 	 Interest 	Total	
2025
2026
2027
2028
2029
2030-2034
2035-2036
Total	$       1,765,000
         1,815,000
         1,865,000
         1,920,000
         1,975,000
       10,780,000          4,170,000
$     24,290,000	$          766,242
            707,586
            647,283
            585,252
            521,409          1,585,792             128,205 $       4,941,769	$       2,531,242
         2,522,586
         2,512,283
         2,505,252
         2,496,409        12,365,792
         4,298,205 $      29,231,769	
 
NOTE 10 – INTERLOCAL AGREEMENTS 
 
The District entered an interconnect agreement with the Reserve Community Development District (“the Reserve”) for the bulk sale of water from the District to the Reserve in 1993. In the agreement, the Reserve shall pay a connection charge of $1,000 per water ERC, which equals 250 gallons per day, for each unit served through the interconnect. The District later amended the agreement, on November 12, 2003, to provide an additional 500,000 gallons per day, representing 2,000 ERC’s of potable water and 400,000 gallons per day, representing 2,000 ERC’s of sanitary sewer services to be phased in over a period not beyond October 1, 2015. During a prior fiscal year, on May 1, 2013, the District signed an amendment to the prior agreement, which revised the water and sewer service capacity to be purchased by the Reserve and also revised the monthly “take or pay” gallonage charges to be paid to the Utility for the potable water and sanitary sewer services received by the Reserve. Pursuant to the amended agreement, the Reserve purchased an additional 700 sewer ERC’s in May 2013, and shall now pay a connection charge of $900 per sewer ERC. During the current fiscal year the District collected $817,133 of connection fees which are shown as impact fees on the financial statements. The District also collected $711,428 in wholesale water and sewer fees from the Reserve during the current fiscal year. 
 
The District entered an interlocal agreement with the City of Port St. Lucie (the City) for maintenance of the stormwater management system in 1996. The City levies stormwater fees and then charges the District a 25% fee for administrative charges and maintaining main lines for storm runoff and remits the remaining 75% of stormwater fees collected from the District’s residents to the District for maintenance of the stormwater facilities owned by the District. For the year ended September 30, 2024, the City remitted approximately $2,023,106 in fees to the District.  
 
In 2014 the District entered in another interlocal agreement with the City of Port St. Lucie (the City) for the payment of the debt service on the Series 2014 Bonds used to purchase land for the purpose of stormwater drainage. The City will pay the District approximately $400,000 annually to cover the entire debt service payment for the life of the bond. 

NOTE 11 – EMPLOYEE PENSION PLAN 
 
The District has established a Simplified Employee Pension Plan (SEP), which is classified as a defined contribution plan. The District contributed 9% of eligible employees’ salaries during the fiscal year ended September 30, 2024. In order to be eligible, an employee must be at least 21 years of age and employed for at least one year. 
 
The District also has a 457 deferred compensation plan for which employees are eligible for upon hiring. This plan allows the employee to make tax deferred contribution direct to an investment account. Contributions are limited based on statutory limitations. There are no District contributions to this plan. 
 
Pension expense was approximately $123,872 in the general fund and $187,476 in the water and sewer fund for the fiscal year ended September 30, 2024. The District, at its sole discretion, has the authority to terminate these pension plans; however, the District does not have the intention to do so. 
 
NOTE 12 – MANAGEMENT COMPANY 
 
The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs. 
 
NOTE 13 – RISK MANAGEMENT 
 
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years. 
 
NOTE 14 - SUBSEQUENT EVENTS 
 
Subsequent to year end, on November 7, 2024, the St Lucie west Services District issued $56,530,000.00 in Series 2024 Utility Revenue and Refunding Bonds. The purpose of theses bonds were to refund the 3 existing utility bonds, and to get new money for an utility plant expansion project. The 3 refunded bonds were the Series 2011 Utility Bonds, the Series 2013 Utility Bonds, and the Series 2014 Utility Bonds. The amount of new money to fund the construction account for the utility plant expansion project is $34,746,777.44. The newly issued Series 2024 bonds have a single maturity of 10/1/2044, and a single coupon rate of 4.420% for the life of the bond. 
 
SLWSD has an existing Bulk Water & Sewer Agreement with the Reserve CDD that expires in 2028. Reserve CDD has agreed to cancel this agreement and incorporate their service area into SLWSD. SLWSD will control and own the Reserve CDD infrastructure tentatively by January 2027. SLWSD    has received UT Revenue Series 2024 Bonds to expand the capacity of the Water Treatment Plant and provide needed redundancy to prepare for this incorporation. These improvements are anticipated to be completed by fall of 2027. As part of this Agreement, SLWSD has deposited $1,000,000.00 in Escrow that will be held until the fulfillment of SLWSD’s obligation to complete the plant capacity expansion project, at which time it will be returned to SLWSD.   
 
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN 
FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 
 
REVENUES
Assessments
Stormwater fees
Miscellaneous and interest revenue
Total revenues
EXPENDITURES
Current:
General government
Maintenance and operations
Capital outlay
Total expenditures
Excess (deficiency) of revenues             over (under) expenditures	Budgeted Amounts	 
Actual 
Amounts
$   1,472,810      2,023,106         131,557      3,627,473
        501,965      2,989,676         122,406      3,614,047
          13,426	Variance with 
Final Budget - 
Positive 
(Negative)
$                           11,830
       (399,988)
       (388,158)
       (126,065)
        237,924         252,594         364,453
$       (23,705)	
	Original 
$   1,500,389      2,100,000         451,482      4,051,871
        393,465      3,668,368         316,749      4,378,582
$     (326,711)	Final
$    1,472,810
     2,011,276         531,545      4,015,631
 
        375,900      3,227,600         375,000      3,978,500
$        37,131			

Fund balance - beginning	     3,314,000	
Fund balance - ending	$   3,327,426	

 

 

 

 

 

 

 

See notes to required supplementary information 
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board.  The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). 
 
An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes.  The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate.  Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2024 was amended to decrease revenues by ($36,240) and decrease appropriations by ($400,082). Actual general fund expenditures did not exceed appropriations during the current fiscal year. 

 

 

 

 

 

 

 

OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C) 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 
UNAUDITED 
 
Element	Comments	
Number of district employees compensated at 9/30/2024	61	
Number of independent contractors compensated in September 2024	20	
Employee compensation for FYE 9/30/2023 (paid/accrued)	$5,538,545	
Independent contractor compensation for FYE 9/30/2024	$212,525 	
Construction projects to begin on or after October 1; (>$65K)	Ongoing Construction Budgeted for FY 25 of $36,895,500	
Budget variance report	See Variance Report in report for details	
Ad Valorem taxes;	Not applicable	
		
Non ad valorem special assessments;		
      Special assessment rate FYE 9/30/2024	Operation & Maintenance = $146 per ERU                  
Debt = $208.84 per ERU	
Special assessments collected FYE 9/30/2024	$3,576,924 	
Outstanding Bonds:		
Series 2013 (WMB), due May 1, 2025	$1,805,000 - See Long Term Liabilities Note in report for details	
Series 2014 (Land Aquisition), due February 1, 2030	$2,125,000 - See Long Term Liabilities Note in report for details	
Series 2011 (Utility Revenue), due October 1, 2031	$9,955,000- See Long Term Liabilities Note in report for details	
Series 2013 (Utility Revenue), due Ocotber 1, 2032	$2,565,000 - See Long Term Liabilities Note in report for details	
Series 2014 (Utility Revenue), due October 1, 2035	$10,005,000 - See Long Term Liabilities Note in report for details	
Series 2021 (Capital Improvement Revenue), due May 1, 2026	$1,440,000 - See Long Term Liabilities Note in report for details	

 	     
   1001 Yamato Road ▪ Suite 301 
   Boca Raton, Florida 33431 
   (561) 994-9299 ▪ (800) 299-4728 
   Fax (561) 994-5823 
   www.graucpa.com 

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL 
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT  
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH  
GOVERNMENT AUDITING STANDARDS 
 
To the Board of Supervisors  
St. Lucie West Services District 
St. Lucie County, Florida  
 
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities and each major fund of St. Lucie West Services District, St. Lucie County, Florida (“District”) as of and for the fiscal year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated June 6, 2025.  
Report on Internal Control Over Financial Reporting  
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. 
 
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.   
 
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.   
Report on Compliance and Other Matters  
 
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.  The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.  
Purpose of this Report 
 
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.  

June 6, 2025 

 

   1001 Yamato Road ▪ Suite 301 
   Boca Raton, Florida 33431 
   (561) 994-9299 ▪ (800) 299-4728 
   Fax (561) 994-5823 
   www.graucpa.com 

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE  
REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY  
RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 
 
To the Board of Supervisors  
St. Lucie West Services District 
St. Lucie County, Florida  
 
We have examined St. Lucie West Services District, St. Lucie County, Florida (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2024. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination. 
 
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on District’s compliance with specified requirements. 
 
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. 
 
In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2024. 
 
This report 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, management, and the Board of Supervisors of St. Lucie West Services District, St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.    

 
June 6, 2025 

 
 	     
   1001 Yamato Road ▪ Suite 301 
   Boca Raton, Florida 33431 
   (561) 994-9299 ▪ (800) 299-4728 
   Fax (561) 994-5823 
   www.graucpa.com 

MANAGEMENT LETTER PURSUANT TO THE RULES OF 
 	THE AUDITOR GENERAL FOR THE STATE OF FLORIDA    
 
To the Board of Supervisors 
St. Lucie West Services District 
St. Lucie County, Florida 
 
Report on the Financial Statements 
 
We have audited the accompanying basic financial statements of St. Lucie West Services District, St. Lucie County, Florida (the "District") as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated June 6, 2025. 
 
Auditor’s Responsibility 
 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General.   
 
Other Reports and Schedule 
 
We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 6, 2025, should be considered in conjunction with this management letter. 
 
Purpose of this Letter 
 
The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida.  Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following: 
 
I.	Current year findings and recommendations. 
II.	Status of prior year findings and recommendations. 
III.	Compliance with the Provisions of the Auditor General of the State of Florida. 
 
Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, as applicable, management, and the Board of Supervisors of St. Lucie West Services District, St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.  
 
We wish to thank St. Lucie West Services District, St. Lucie County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. 

June 6, 2025 
 
REPORT TO MANAGEMENT 

I.	CURRENT YEAR FINDINGS AND RECOMMENDATIONS  
 
 	None 
 
II.	PRIOR YEAR FINDINGS AND RECOMMENDATIONS AND CURRENT YEAR STATUS 
 
None 
 
III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 
 
Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following: 
 
1.	A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.   
There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2023. 
2.	Any recommendations to improve the local governmental entity's financial management. 
There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2024. 
3.	Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance.    
There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2024. 
4.	The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 
 
5.	The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.  
 
6.	We applied financial condition assessment procedures pursuant to Rule 10.556(7) and no deteriorating financial conditions were noted as of September 30, 2024. It is management’s responsibility to monitor 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.  
 
7.	Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 33.