2025 Final Audit Town of Orange Park.pdf

Town of Orange Park, Florida

Financial Statements and

Independent Auditor’s Report

September 30, 2025

TOWN OF ORANGE PARK, FLORIDA

LIST OF TOWN OFFICIALS

AS OF SEPTEMBER 30, 2025

TOWN COUNCIL

Randy Anderson, Mayor

Winnette Sandlin, Vice-Mayor Doug Benefield

Glenn Taylor Kenneth Vogel

TOWN MANAGER

John Villanueva, C.P.A (Acting)

TOWN CLERK

Courtney Russo

FINANCE DIRECTOR

John Villanueva, C.P.A.

TOWN ATTORNEY

Lawsikia Hodges

FINANCIAL STATEMENTS

AND

INDEPENDENT AUDITOR’S REPORT

SEPTEMBER 30, 2025

TABLE OF CONTENTS

Independent Auditor’s Report .................................................................................................................. 1-3

Management’s Discussion and Analysis ................................................................................................. 4-10

Basic Financial Statements Government-Wide Financial Statements:

Statement of Net Position Statement of Activities Fund Financial Statements:

Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Net Position - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds ................................................................................. 19-20 Statement of Fiduciary Net Position - Fiduciary Funds Statement of Changes in Fiduciary Net Position - Fiduciary Funds Notes to Financial Statements ............................................................................................................ 23-55

Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Note to Required Supplementary Information Schedule of Changes in Net Pension Liability and Related Ratios - General Employees’ Pension Plan ...................................................................................... 58-59 Schedule of Contributions - General Employees’ Pension Plan Notes to Schedule - General Employees’ Pension Plan Schedule of Investment Returns - General Employees’ Pension Plan Schedule of Changes in Net Pension Liability and Related Ratios - Firefighters’ Pension Plan ................................................................................................... 62-63 Schedule of Contributions - Firefighters’ Pension Plan Notes to Schedule - Firefighters’ Pension Plan ................................................................................... 64-65 Schedule of Investment Returns - Firefighters’ Pension Plan

FINANCIAL STATEMENTS

AND

TABLE OF CONTENTS

Schedule of Changes in Net Pension Liability and Related Ratios - Police Officers’ Pension Plan .............................................................................................. 66-67 Schedule of Contributions - Police Officers’ Pension Plan Notes to Schedule - Police Officers’ Pension Plan .............................................................................. 68-69 Schedule of Investment Returns - Police Officers’ Pension Plan Schedule of Changes in Total OPEB Liability and Related Ratios

Other Supplementary Information Combining Balance Sheet - Non-Major Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Non-Major Governmental Funds

Other Reports

Schedule of Expenditures of Federal Awards Notes to the Schedule of Expenditures of Federal Awards Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance ................................................................................................................ 75-77 Schedule of Findings and Questioned Costs - Federal Awards ........................................................... 78-79 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 ......................................................................... 80-81 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes - Investment of Public Funds Management Letter ............................................................................................................................ 83-85 Management Response ...................................................................................................................... 86-88

Town Council and Town Manager

Report on the Audit of Financial Statements

Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Orange Park, Florida (the Town) as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the Town’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, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of September 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and 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 Financial Statements section of our report. We are required to be independent of the Town and 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’s for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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 Town’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 Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than 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 judgement made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:

■ Exercise professional judgement 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 Town’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 judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’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 required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The other supplementary information, as listed in the table of contents, and schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2026, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is 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 Town’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 Town’s internal control over financial reporting and compliance.

June 30, 2026 Gainesville, Florida

MANAGEMENT’S DISCUSSION AND ANALYSIS

The management of the Town of Orange Park, Florida (the Town), offers readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2025. All amounts, unless otherwise indicated, are expressed in thousands of dollars.

Financial Highlights

• The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows at the close of fiscal year 2025 by $74.7 million (net position). Of this amount, $13.2 million (unrestricted net position) may be used to meet the Town’s ongoing obligations to citizens and creditors.

• At September 30, 2025, the Town’s governmental funds reported a combined ending fund balance of $17.7 million, an increase of $1.6 million in comparison with the prior year.

• At September 30, 2025, unassigned fund balance for the General Fund was $11.74 million or 78.8% of total General Fund expenditures.

• The governmental activities and the business-type activities have no outstanding debt. The Town paid off the balances of the notes payable and bonded debt in the business-type activities in October 2015.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements are made up of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the financial statements. This report also contains required and 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 Town’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference 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 Town is improving or deteriorating.

The Statement of Activities presents information showing how the Town’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 Town that are principally supported by taxes, licenses and permits, and intergovernmental revenues (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 Town include general government, public safety, public works, and culture and recreation. The business-type activities of the Town include water and sewer services, and stormwater services.

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 Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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 Town’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 Town’s near-term financing decisions. Reconciliations are provided between the governmental fund balance sheet and the statement of net position and the governmental fund statement of revenues, expenditures, and changes in fund balances and statement of activities to facilitate this comparison between governmental funds and governmental activities.

The Town maintains nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and Sales Tax Fund, which are major funds. Financial information for the other seven governmental funds is combined into a single, aggregated presentation.

Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.

Proprietary funds. The Town maintains two proprietary or “enterprise funds.” Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its Water and Sewer Fund and Stormwater Fund.

The proprietary fund financial statements provide separate information for the Water and Sewer Fund and the Stormwater Fund.

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of those individuals that have retired from the Town and those that will retire in the future (e.g., pension beneficiaries).

Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

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.

Required Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s progress in funding its obligation to provide pension benefits and other post-employment benefits.

Other Supplementary Information. The combining fund statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information.

Government-wide Financial Analysis

Below is a summary Statement of Net Position for the Town as of September 30, 2025 and 2024.

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Town, assets exceeded liabilities by $74.7 million at the close of the fiscal year ended September 30, 2025.

By far, the largest portion of the Town’s net position (75.8%) reflects its net investment in capital assets (e.g., land, buildings, infrastructure, and equipment). The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s net 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.

A portion of the Town’s net position, $4,893 thousand (6.5%), represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $13.2 million (17.7%), may be used to meet the government’s ongoing obligations to citizens and creditors.

At the end of the current fiscal year, the Town is able to report positive balances in total net position, both for the government as a whole, as well as for its separate governmental and business-type activities.

Below is a summary of the changes in net position for the Town during the fiscal years ended September 30, 2025 and 2024:

Governmental Business-Type Total Primary

Activities Activities Government

2025 2024 2025 2024 2025 2024

Current and other assets 22,701$ 20,001$ 2,177$ 4,359$ 24,878$ 24,360$

Capital assets 25,273 23,014 31,350 29,537 56,623 52,551

Total assets 47,974 43,015 33,527 33,896 81,501 76,911

Deferred outflows of resources 1,603 5,125 412 449 2,015 5,574

Long-term liabilities outstanding 2,454 6,293 171 119 2,625 6,412

Other liabilities 2,644 3,619 669 1,183 3,313 4,802

Total liabilities 5,098 9,912 840 1,302 5,938 11,214

Deferred inflows of resources 2,710 515 147 131 2,857 646

Net Position:

Net investment in capital assets 25,273 23,014 31,350 29,187 56,623 52,201

Restricted 4,893 4,717 - - 4,893 4,717

Unrestricted 11,603 9,982 1,602 3,725 13,205 13,707

Total net position 41,769$ 37,713$ 32,952$ 32,912$ 74,721$ 70,625$

Statement of Net Position

(In thousands)

Governmental activities. Governmental activities net position increased by $4.05 million. This is primarily due to increased property taxes, increased sales taxes, increased utility service taxes, increased charges for services, increased judgements and fines, and increase in capital grants and contributions. The Town of Orange Park now reports the garbage pickup revenue in the General Fund. The Sanitation Fund was dissolved in 2020. The Town now also collects service charges for ambulance fees, which are also reported in the General Fund.

Business-type activities. Business-type activities net position increased $40,000 accounting for 0.12% increase in the business-type activities net position. This increase is due to normal business operations of the enterprise funds.

Overall financial position. The overall financial position of the Town has been stable. Net position increased by $4,095,764 thereby accounting for a total increase of 5.8%. This was attributable to the explanations given above for governmental activities and business-type activities.

Financial Analysis of the Town’s Funds As noted earlier the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

2025 2024 2025 2024 2025 2024

Revenues:

Program revenues:

Charges for services 3,639$ 3,262$ 5,647$ 5,400$ 9,286$ 8,662$ Operating grants and contributions 284 585 216 155 500 740 Capital grants and contributions 2,247 374 - 176 2,247 550

General revenues:

Property taxes 4,700 4,406 - - 4,700 4,406 Other taxes 4,686 4,545 - - 4,686 4,545 Franchise fees 1,134 994 - - 1,134 994 Other State shared revenues 1,228 1,223 - - 1,228 1,223 Investment earnings 645 756 89 152 734 908 Miscellaneous 141 64 37 3 178 67

Total revenues 18,704 16,209 5,989 5,886 24,693 22,095

Expenses:

General government 3,636 4,022 - - 3,636 4,022 Public safety 7,715 8,402 - - 7,715 8,402 Public works 3,265 3,504 - - 3,265 3,504 Culture/recreation 497 533 - - 497 533

Water and sewer - - 4,966 4,083 4,966 4,083

Stormwater - - 518 406 518 406 Total expenses 15,113 16,461 5,484 4,489 20,597 20,950

Increase (decrease) in net assets before transfers 3,591 (252) 505 1,397 4,096 1,145

Transfers 465 460 (465) (460) - - Change in net position 4,056 208 40 937 4,096 1,145

Net position - beginning 37,713 37,505 32,912 31,975 70,625 69,480

Net position - ending 41,769$ 37,713$ 32,952$ 32,912$ 74,721$ 70,625$

Governmental Activities Business-Type Activities Total Primary Government

Changes in Net Position

Governmental funds. The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of fiscal year 2025, the Town’s governmental funds reported combined ending fund balances of $17.7 million, an increase of $1,605,334 in comparison with the prior year.

The General Fund is the primary operating fund of the Town. At the end of fiscal year 2025, unassigned fund balance of the General Fund was $11.75 million. Unassigned fund balance represents 78.8% of the total General Fund expenditures. The fund balance of the Town’s General Fund increased by $1,238,920 during the fiscal year ended September 30, 2025 (compared to a 2024 increase of $1,223,416). This is due in part to net increase in revenues of $1,944,462, a net increase in expenditures of $2,174,038, an increase of transfers in of $95,080 and an decrease in transfers out of ($150,000).

Changes in revenue consisted of the following:

• Increase in ad valorem tax revenue of $295,000;

• Increase in utility service tax – electricity of $47,000;

• Increase in communications services tax revenue of $12,600;

• Increase in red light camera revenue of $117,000;

• Increase in franchise fee – electricity of $69,000;

• Increase in franchise fee – solid waste of $71,000;

• Decrease in investment earnings revenue of ($95,000);

• Increase in service charges – garbage/solid waste of $261,000;

• Decrease in cardroom tax of ($12,000);

• Increase in ambulance revenue of $119,000;

• Decrease in school resource officer reimbursement of ($3,000);

• Increase in fines-local ordinance violations of $14,000;

• Increase in interfund charges of $43,476.

The Sales Tax Fund is a major governmental fund. This fund includes capital projects requested by and approved by the Town Council funded by sales taxes. Fund balance for the Sales Tax Fund increased $186,929 due to increased sales tax revenue, decreased investment income revenue, and increased expenditures in capital outlay. Major capital projects expenditures during the year were for the Johnson Slough Improvements, the Bradley Park Improvements, the Milwaukee Sidewalk Improvements, and the Clover Avenue and Freckles Ct Improvements. There was also $373,000 expended on equipment purchases which included $231,000 for vehicles and heavy equipment.

Non-major governmental funds consisting of special revenue funds have a combined fund balance of $2,500,006. The net increase in fund balance during the current year for non-major governmental funds was $179,485.

Proprietary funds. The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Unrestricted net position of the Water and Sewer Fund at the end of the year amounted to $359,461 or 1.2% of total net position. Net position is accumulated in the Water and Sewer Fund to fund future water and sewer capital projects that are of long-term duration.

Unrestricted net position of the Stormwater Fund at the end of the year amounted to $1.2 million or 35.3% of total net position. Net position is accumulated in the Stormwater Fund to fund future stormwater capital projects that are of long-term duration.

The Water and Sewer fund reported an decrease in net position of ($505,234) or 1.7%. The Stormwater Fund reported an increase in net position of $544,853 or 18.3%.

General Fund Budgetary Highlights

• All of the Town’s departments combined spent $588,123 less than budgeted. The amount saved was between 2.0% and 56.2% per function.

• The Town fund balance increased $1,238,920 in fiscal year 2024-2025.

• The Town received 113.4% of budgeted revenue.

Capital Asset and Debt Administration

Capital assets. The Town’s investment in capital assets for its governmental and business-type activities as of September 30, 2025, amounts to $56.6 million (net of accumulated depreciation). This investment in capital assets includes land, buildings, and infrastructure, improvements which are other than buildings, equipment, and construction in progress.

Major capital projects during the 2024-25 fiscal year included:

• Johnson Slough Improvements

• Bradley Park Improvements

• Clover Avenue and Freckles Ct Improvements

• Milwaukee Sidewalk

• Kingsley Avenue Improvements

• Magnolia Cemetery Culvert

• Sceptic to Sewer Conversion Project

• T.C. Miller Community Center Building

• Hickory Lane Roadway Improvements

• Surge Tank Rehabilitation

• Wyngate Drive Lift Station Improvements

2025 2024 2025 2024 2025 2024 Land 2,697$ 2,697$ 986$ 122$ 3,683$ 2,819$ Construction in progress 4,319 1,317 3,004 3,228 7,323 4,545 Buildings and improvements 6,712 6,712 247 247 6,959 6,959 Improvements other than buildings 5,091 4,986 50,020 47,092 55,111 52,078 Equipment 8,463 8,187 2,187 2,064 10,650 10,251 Infrastructure 32,633 31,666 - - 32,633 31,666 Less accumulated depreciation (34,643) (32,552) (25,094) (23,217) (59,737) (55,769)

Totals 25,272$ 23,013$ 31,350$ 29,536$ 56,622$ 52,549$

Capital Assets at Year-End

Business-Type ActivitiesGovernmental Activities Total

Additional information on the Town’s capital assets can be found in Note 5 of the notes to the financial statements.

Long-term debt. At the end of fiscal year 2025, the Town had no outstanding debt. The Town’s long-term debt of bonds and the Florida Department of Environmental Protection loans were paid in full in October 2015.

Under Florida Statutes, no debt limit margin is placed on local governments.

Additional information on the Town’s long-term debt can be found in Note 6 of the notes to the financial statements of this report.

Economic Factors and Future Budgets and Rates

The State of Florida, by Constitution, does not have a state personal income tax and therefore the State operates primarily using sales tax revenue, gasoline tax revenue, and corporate income taxes. Local governments (cities and counties) primarily rely on property assessments combined with a limited array of authorized other taxes (sales, gasoline, utilities services, etc.) and fees (franchise, occupational license, etc.) to support their governmental activities. There are a limited number of state shared revenues and recurring and non-recurring (one time) grants from both state and Federal government agencies.

• The unemployment rate as of September 30, 2025, for the municipal service area was 4.4%. This compared unfavorably with the state’s average unemployment rate of 4.2% and was the same as the national average unemployment rate of 4.4%.

• Since the Town is effectively built out, new construction is not expected to produce significant annual increases in property assessments. Currently, about thirty-one percent (35.3%) of the General Fund’s annual revenues are from property taxes. The Town implemented a utility service tax on electricity which went into effect on April 1, 2015, and generated $914,000 in revenue in fiscal year 2025. Other current revenues are not expected to increase significantly, and many of these are beyond the Town’s control. Continued diversification of revenues where possible could help to alleviate pressure on property tax rates.

• Although the Town is constantly being challenged by increasing costs for employee benefits, it does not face demand to add personnel in order to extend current levels of services to new areas.

• Public Safety-related activities, such as Police and Fire Services, make up 48.0% of the General Fund Expenditures, down from the prior year at 51.9%.

Requests for Information

This financial report is designed to provide a general overview for those with an interest in the Town’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Town of Orange Park, Finance Director, 2042 Park Avenue, Orange Park, Florida 32073.

BASIC FINANCIAL STATEMENTS

Governmental Business-Type Activities Activities Total

Assets Equity in Pooled Cash and Investments 18,124,823$ 995,394$ 19,120,217$ Receivables, Net 195,843 410,529 606,372 Internal Balances 92,538 (92,538) - Due from Other Governments 1,917,352 397,317 2,314,669 Other Current Assets 182,723 162,832 345,555 Restricted Equity in Pooled Cash and Investments 80,827 205,567 286,394 Net Pension Asset 2,108,063 96,478 2,204,541 Capital Assets:

Land 2,697,041 986,230 3,683,271 Construction in Progress 4,319,371 3,003,729 7,323,100 Buildings and Improvements 6,712,366 247,255 6,959,621 Improvements Other Than Buildings 5,091,048 50,019,712 55,110,760 Equipment 8,462,830 2,187,320 10,650,150 Infrastructure 32,633,307 - 32,633,307 Accumulated Depreciation (34,643,298) (25,093,918) (59,737,216)

Capital Assets, Net 25,272,665 31,350,328 56,622,993 Total Assets 47,974,834 33,525,907 81,500,741

Deferred Outflows of Resources Pension Related 1,533,990 397,626 1,931,616 OPEB Related 68,682 14,614 83,296

Total Deferred Outflows of Resources 1,602,672 412,240 2,014,912

Liabilities Accounts Payable and Accrued Liabilities 1,712,756 463,086 2,175,842 Due to Other Governments 97,537 - 97,537 Unearned Revenue 753,687 - 753,687 Payable from Restricted Assets:

Deposits 80,827 205,567 286,394 Non-Current Liabilities:

Due Within One Year 434,975 33,331 468,306 Due in More Than One Year 1,212,203 137,689 1,349,892 Net Pension Liability 806,327 - 806,327

Total Liabilities 5,098,312 839,673 5,937,985

Deferred Inflows of Resources Pension Related 2,467,080 109,170 2,576,250 OPEB Related 242,978 37,422 280,400

Total Deferred Inflows of Resources 2,710,058 146,592 2,856,650 3 Net Position

Net Investment in Capital Assets 25,272,665 31,350,328 56,622,993 Restricted for:

Infrastructure 2,787,914 - 2,787,914 Transportation 1,707,979 - 1,707,979 Law Enforcement 104,082 - 104,082 Memorial Day Services 24,069 - 24,069 Building Department 269,114 - 269,114

Unrestricted 11,603,313 1,601,554 13,204,867 Total Net Position 41,769,136$ 32,951,882$ 74,721,018$

TOWN OF ORANGE PARK, FLORIDA

STATEMENT OF NET POSITION

SEPTEMBER 30, 2025

See accompanying notes.

Charges for Operating Grants Capital Grants Governmental Business-Type Function/Program Expenses Services and Contributions and Contributions Activities Activities Total Governmental Activities

General Government 3,635,606$ 67,103$ -$ 270,631$ (3,297,872)$ -$ (3,297,872)$ Public Safety 7,714,731 2,555,296 - - (5,159,435) - (5,159,435) Public Works 3,265,951 970,162 218,789 1,963,270 (113,730) - (113,730) Culture/Recreation 496,487 46,849 64,878 12,510 (372,250) - (372,250)

Total Governmental Activities 15,112,775 3,639,410 283,667 2,246,411 (8,943,287) - (8,943,287)

Business-Type Activities Water and Sewer 4,966,149 4,760,399 65,938 - - (139,812) (139,812) Stormwater 518,536 886,907 149,745 - - 518,116 518,116

Total Business-Type Activities 5,484,685 5,647,306 215,683 - - 378,304 378,304

Total Primary Government 20,597,460$ 9,286,716$ 499,350$ 2,246,411$ (8,943,287) 378,304 (8,564,983)

General Revenues Property Taxes 4,700,770 - 4,700,770 Insurance Premium Tax 326,924 - 326,924 Sales Tax 1,539,105 - 1,539,105 Utility Service Tax 913,504 - 913,504 Communication Services Tax 682,871 - 682,871 Motor Fuel Tax 1,154,925 - 1,154,925 Local Business Tax 68,627 - 68,627

Franchise Fees 1,133,855 - 1,133,855 Other State Shared Revenues 1,228,098 - 1,228,098 Investment Earnings 644,551 89,265 733,816 Miscellaneous 141,202 37,050 178,252

Transfers 465,000 (465,000) - Total General Revenues and Transfers 12,999,432 (338,685) 12,660,747 Change in Net Position 4,056,145 39,619 4,095,764 Net Position, Beginning of Year 37,712,991 32,912,263 70,625,254 Net Position, End of Year 41,769,136$ 32,951,882$ 74,721,018$

Program Revenues Primary Government

TOWN OF ORANGE PARK, FLORIDA

STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Net (Expense) Revenue and Changes in Net Position

Capital Non-Major Total Project Governmental Governmental

General Sales Tax Funds Funds Assets

Equity in Pooled Cash and Investments 12,718,666$ 2,866,914$ 2,539,243$ 18,124,823$ Restricted Equity in Pooled Cash and

Investments 80,827 - - 80,827 Receivables (Net of Allowance) 195,843 - - 195,843 Due from Other Funds 92,538 - - 92,538 Due from Other Governments 1,089,516 576,115 251,721 1,917,352 Inventories 44,255 - - 44,255 Prepaid Items 138,468 - - 138,468

Total Assets 14,360,113 3,443,029 2,790,964 20,594,106

Liabilities, Deferred Inflows of Resources, and Fund Balances

Liabilities Accounts Payable and

Accrued Liabilities 1,245,208 176,590 290,958 1,712,756 Due to Other Governments 97,537 - - 97,537 Deposits 80,827 - - 80,827 Unearned Revenue 753,687 - - 753,687

Total Liabilities 2,177,259 176,590 290,958 2,644,807

Deferred Inflows of Resources Unavailable Revenues 229,730 - - 229,730

Fund Balances

Non-Spendable:

Inventories 44,255 - - 44,255

Prepaid Items 138,468 - - 138,468

Restricted for:

Infrastructure - 2,787,914 - 2,787,914

Transportation - - 1,707,979 1,707,979

Law Enforcement - - 104,082 104,082

Memorial Day Services 24,069 - - 24,069

Building Department - - 269,114 269,114

Committed:

Transportation - - 25,183 25,183

Cemetery Care and Maintenance - - 393,648 393,648

Assigned:

Infrastructure - 478,525 - 478,525

Unassigned 11,746,332 - - 11,746,332 Total Fund Balances 11,953,124 3,266,439 2,500,006 17,719,569

Total Liabilities and Fund Balances 14,360,113$ 3,443,029$ 2,790,964$ 20,594,106$

TOWN OF ORANGE PARK, FLORIDA

BALANCE SHEET

GOVERNMENTAL FUNDS

SEPTEMBER 30, 2025

Fund Balance - Total Governmental Funds 17,719,569$

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 in the funds:

Governmental Capital Assets 59,915,963$ (Accumulated Depreciation) (34,643,298) 25,272,665

Deferred outflows and inflows of resources in governmental activities are not current financial resources and, therefore, are not reported in governmental funds:

Deferred Outflows Related to Pensions 1,533,990 Deferred Outflows Related to Other Postemployment Benefits (OPEB) 68,682 Deferred Inflows Related to Pensions (2,467,080) Deferred Inflows Related to OPEB (242,978) (1,107,386)

Some revenues have been deferred on the balance sheet because they were not measurable and available at year-end. 229,730

Non-current liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Non-current assets are not receivable in the current period and, therefore, are not reported in the funds:

Net Pension Asset 2,108,063 Net Pension Liability (806,327) Compensated Absences (1,027,465) Net OPEB Obligation (619,713) (345,442)

Net Position of Governmental Activities 41,769,136$

TOWN OF ORANGE PARK, FLORIDA

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION

SEPTEMBER 30, 2025

Capital Non-Major Total Project Governmental Governmental

General Sales Tax Funds Funds Revenues

Taxes 6,692,696$ 1,539,105$ 1,154,925$ 9,386,726$ Permits, Fees, and Assessments 1,147,586 - 266,254 1,413,840 Intergovernmental 3,075,417 500,000 - 3,575,417 Charges for Services 1,979,007 - 34,811 2,013,818 Fines and Forfeitures 1,445,376 - 10,405 1,455,781 Investment Income (Loss) 475,551 156,097 12,902 644,550 Miscellaneous 159,432 - - 159,432 Interfund Charges 511,666 - - 511,666

Total Revenues 15,486,731 2,195,202 1,479,297 19,161,230

Expenditures Current:

General Government 3,271,216 - 101,192 3,372,408 Public Safety 7,163,753 - 14,280 7,178,033 Public Works 2,347,727 - - 2,347,727 Culture and Recreation 245,739 - - 245,739

Capital Outlay 1,866,776 1,938,273 1,071,940 4,876,989 (Total Expenditures) (14,895,211) (1,938,273) (1,187,412) (18,020,896)

Excess of Revenues Over Expenditures 591,520 256,929 291,885 1,140,334

Other Financing Sources (Uses) Transfers in 647,400 - - 647,400 Transfers (out) - (70,000) (112,400) (182,400)

Total Other Financing Sources (Uses) 647,400 (70,000) (112,400) 465,000

Net Changes in Fund Balance 1,238,920 186,929 179,485 1,605,334

Fund Balances, Beginning of Year 10,714,204 3,079,510 2,320,521 16,114,235

Fund Balances, End of Year 11,953,124$ 3,266,439$ 2,500,006$ 17,719,569$

TOWN OF ORANGE PARK, FLORIDA

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Net Change in Fund Balance - Total Governmental Funds 1,605,334$

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of these assets is depreciated over their estimated useful lives:

Capital Outlay 4,448,182$ (Less Current Year Depreciation) (2,188,765) 2,259,417

The changes in net pension liability or asset and pension related deferred outflows and inflows of resources result in an adjustment to pension expense in the Statement of Activities, but not in the governmental fund statements. 253,272

The net change in net other postemployment benefit obligation liability and related deferred outflows and inflows of resources is reported in the Statement of Activities, but not in the governmental fund statements. 9,863

Certain revenues reported in the Statement of Activities are not considered current financial resources and, therefore, are not reported as revenue in the governmental funds. Prior unavailable revenues subsequently collected and recognized as revenue in the governmental funds in the current period are not reported in the Statement of Activities. 54,355

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:

Change in Compensated Absences (126,096)

Change in Net Position of Governmental Activities 4,056,145$

TOWN OF ORANGE PARK, FLORIDA

RECONCILIATION OF THE STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Water and Sewer Stormwater Total

Assets

Current Assets:

Equity in Pooled Cash and Investments -$ 995,394$ 995,394$

Restricted Equity in Pooled Cash and Investments 205,567 - 205,567

Receivables, Net 388,679 21,850 410,529

Due from Other Governments 191,982 205,335 397,317 Inventories 127,377 - 127,377

Prepaid Items 30,663 4,792 35,455

Total Current Assets 944,268 1,227,371 2,171,639

Non-Current Assets:

Net Pension Asset 74,332 22,146 96,478

Capital Assets, Net:

Land 986,230 - 986,230

Construction in Progress 1,439,052 1,564,677 3,003,729

Building and Improvements 247,255 - 247,255

Improvements Other Than Buildings 49,229,514 790,198 50,019,712

Equipment 2,049,931 137,389 2,187,320

(Accumulated Depreciation) (24,875,701) (218,217) (25,093,918)

Total Capital Assets, Net 29,076,281 2,274,047 31,350,328

Total Assets 30,094,881 3,523,564 33,618,445

Deferred Outflow of Resources

Pension Related 329,084 68,542 397,626

OPEB Related 12,575 2,039 14,614

Total Deferred Outflow of Resources 341,659 70,581 412,240

Liabilities

Current Liabilities:

Accounts Payable and Accrued Liabilities 433,531 29,555 463,086

Due to Other Funds 92,538 - 92,538

Current Liabilities Payable from Restricted Assets:

Customer Deposits 205,567 - 205,567

Current Portion of Compensated Absences 32,527 804 33,331

Total Current Liabilities 764,163 30,359 794,522

Non-Current Liabilities:

Compensated Absences 44,306 1,095 45,401

Other Postemployment Benefits 75,202 17,086 92,288

Total Non-Current Liabilities 119,508 18,181 137,689

Total Liabilities 883,671 48,540 932,211

Deferred Inflows of Resources

Pension Related 88,537 20,633 109,170

OPEB Related 28,590 8,832 37,422

Total Deferred Inflows of Resources 117,127 29,465 146,592

Net Position

Net Investment in Capital Assets 29,076,281 2,274,047 31,350,328

Unrestricted 359,461 1,242,093 1,601,554

Total Net Position 29,435,742$ 3,516,140$ 32,951,882$

Major Fund

TOWN OF ORANGE PARK, FLORIDA

STATEMENT OF NET POSITION

PROPRIETARY FUNDS

SEPTEMBER 30, 2025

Business-Type Activities - Enterprise Funds

Operating Revenues

Charges for Services 4,760,399$ 886,907$ 5,647,306$

Other Income 37,050 - 37,050

Total Operating Revenues 4,797,449 886,907 5,684,356

Operating Expenses

Personnel Services 1,196,779 276,293 1,473,072

Utilities 300,209 - 300,209

Supplies, Materials, and Other 214,604 44,417 259,021

Professional and Contractual Services 109,505 41,032 150,537

General and Administrative 618,176 - 618,176

Depreciation and Amortization 1,841,087 64,744 1,905,831

Repairs and Maintenance 591,535 92,050 683,585

Insurance 94,254 - 94,254

(Total Operating Expenses) (4,966,149) (518,536) (5,484,685)

Operating Income (Loss) (168,700) 368,371 199,671

Non-Operating Revenues (Expenses)

Intergovernmental 65,938 149,745 215,683

Investment Revenue 62,528 26,737 89,265

Total Non-Operating Revenues

(Expenses) 128,466 176,482 304,948

Income Before Capital Contributions and Transfers (40,234) 544,853 504,619

Transfers (out) (465,000) - (465,000)

Change in Net Position (505,234) 544,853 39,619

Net Position, Beginning of Year 29,940,976 2,971,287 32,912,263

Net Position, End of Year 29,435,742$ 3,516,140$ 32,951,882$

Major Fund

Business-Type Activities - Enterprise Funds

TOWN OF ORANGE PARK, FLORIDA

STATEMENT OF REVENUES, EXPENSES, AND

CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Cash Flows from Operating Activities

Cash Received from Customers 4,828,812$ 881,931$ 5,710,743$

Cash Paid to Suppliers (1,359,779) (692,260) (2,052,039)

Cash Paid to Employees (1,174,866) (278,699) (1,453,565)

Cash Payments for Interfund Services Used (618,176) - (618,176)

Net Cash Provided by (Used in)

Operating Activities 1,675,991 (89,028) 1,586,963

Cash Flows from Non-Capital Financing Activities

Intergovernmental Charges 65,938 149,745 215,683

Due to/from Other Funds 92,538 - 92,538

Transfers in (out) (465,000) - (465,000)

Net Cash Provided by (Used in) Non-Capital Financing

Activities (306,524) 149,745 (156,779)

Cash Flows from Capital and Related Financing Activities

Acquisition and Construction of Capital Assets (3,435,233) (283,839) (3,719,072)

Net Cash Provided by (Used in) Capital and Related

Financing Activities (3,435,233) (283,839) (3,719,072)

Cash Flows from Investing Activities

Interest Received 62,528 26,737 89,265

Net Cash Provided by Investing Activities 62,528 26,737 89,265

Net (Decrease) in Cash and Cash Equivalents (2,003,238) (196,385) (2,199,623)

Cash and Cash Equivalents, Beginning of Year 2,208,805 1,191,779 3,400,584

Cash and Cash Equivalents, End of Year 205,567$ 995,394$ 1,200,961$

Reconciliation of Cash and Cash Equivalents to

Statement of Net Position

Equity in Pooled Cash and Investments -$ 995,394$ 995,394$

Restricted Equity in Pooled Cash and Investments 205,567 - 205,567

Total Cash and Cash Equivalents 205,567$ 995,394$ 1,200,961$

TOWN OF ORANGE PARK, FLORIDA

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Business-Type Activities - Enterprise Funds

Reconciliation of Operating Income (Loss) to Net Cash

Provided by (Used in) Operating Activities

Operating Income (Loss) (168,700)$ 368,371$ 199,671$

Adjustments to Reconcile Operating Income (Loss) to

Net Cash Provided by (Used in) Operating Activities:

Depreciation and Amortization 1,841,087 64,744 1,905,831

Decrease (Increase) in Assets:

Accounts Receivable, Net 24,531 (5,992) 18,539

Due from Other Governments (65,938) - (65,938)

Prepaids 11,898 1,016 12,914

Inventory 10,959 - 10,959

Deferred Outflows of Resources 28,413 8,336 36,749

Increase (Decrease) in Liabilities:

Accounts Payable and Accrued Liabilities 5,307 (514,761) (509,454)

Customer Deposits (5,066) - (5,066)

Compensated Absences 35,373 1,899 37,272

Other Postemployment Benefits 10,121 4,600 14,721

Net Pension Asset/Liability (63,119) (19,437) (82,556)

Deferred Inflows of Resources 11,125 2,196 13,321

Net Cash Provided by (Used in)

Operating Activities 1,675,991$ (89,028)$ 1,586,963$

TOWN OF ORANGE PARK, FLORIDA

Business-Type Activities - Enterprise Funds

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2025

Pension Trust Funds

Assets Cash and Cash Equivalents 1,192,450$ Prepaid Benefits 2,729 Receivables:

Employer and State Contributions 171,247 Accrued Income 17,547

Total Receivables 188,794 Investments:

Florida Municipal Pension Trust Fund 14,843,468 U.S. Government and Agency Securities 603,509 Corporate Bonds 777,867 Domestic Stocks 8,907,079 International Stocks 337,394 Mutual Funds 25,307,803 Unit Investment Funds 2,573,369

Total Investments 53,350,489 Total Assets 54,734,462

Liabilities Accounts Payable 82,153

Total…