03.26.2026 Regular Town Council Meeting Packet - compressed

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Page 1 of 6 OFFICIAL MINUTES REGULAR TOWN COUNCIL MEETING TUESDAY, FEBRUARY 17, 2026 – 9:00 AM TOWN OF INDIAN RIVER SHORES 6001 HIGHWAY A1A INDIAN RIVER SHORES, FL 32963 The regular meeting of the Indian River Town Council was held on Tuesday, February 17, 2026, in Council Chambers, 6001 Highway A1A, Indian River Shores. Those present were Brian Foley, Mayor; Bob Auwaerter, Vice Mayor; Sam Carroll, Councilmember; James Altieri, Councilmember and Peter Tedesko, Councilmember. Also present were James Harpring, Town Manager; Heather Christmas, Finance Director; Peter Sweeney, Town Attorney and Janice C. Rutan, Town Clerk. 1. Call to Order a. Invocation b. Pledge of Allegiance c. Roll Call Councilmember Carroll offered the Invocation. Mayor Foley led the Pledge of Allegiance. The Town Clerk called the roll. All members were present. 2. Agenda Reordering, Deletions, or Emergency Additions There being no reordering, deletions or emergency additions, a motion was made by Councilmember Carroll and seconded by Councilmember Altieri to approve the agenda as presented. The motion passed unanimously 5-0. 3. Presentations/Proclamations a. Florida City Gas - Tim Knutson Tim Knutson, Senior Account Manager for Florida Gas, gave the Town Council a status update on the natural gas line project in Indian River Shores. He reported that work in John’s Island had been delayed due to existing construction and infrastructure, though more than fifteen miles of pipeline have now been installed. Florida Gas expects to begin work in the Estuary in mid- March, followed by smaller projects in Village Shores and Pebble Lane. Marbrisa and Indian Trails are nearing construction. In response to Vice Mayor Auwaerter, Mr. Knutson stated that Ocean Colony was on track for completion within two years. He noted that Florida City Gas anticipates a significant amount of work ahead in Indian River Shores and continues to project a ten-year timeline for full completion. Mr. Knutson explained that permitting through FDOT can take up to a month. 4. Comments From the Public Regarding Agenda Items(s) None.3 5a.

Page 2 of 6 5. Consent Agenda a. Approval of Minutes of Special Call Meeting dated January 21, 2026 b. Approval of Minutes of Town Council Meeting dated January 22, 2026 c. Approval of ILA with Indian River County Property Appraiser re: Septic to Sewer Conversions d. Approval of ILA with Indian River County Tax Collector re: Septic to Sewer Conversions e. Approval of Signature Card Update f. Approval of Authorization for Health Insurance Renewal g. Approval of Vehicle Purchase h. Approval of Disposal of Asset - Public Safety Equipment – Polaris i. Approval of FDEP Grant for Adaptation Plan j. Approval of FDEP Adaptation Plan Contractor k. Review of Construction East of CCCL – 908 Holoma Drive, Dune Crossing l. Review of Construction East of CCCL – 610 Ocean Road, Retaining Walls m. Review of Construction East of CCCL – 610 Ocean Road, Single Family Residence & Pool n. Approve Local Gas Option Tax Agreement o. Review of Recommendation of PZV - Tree Removal Request 341 Sabal Palm Lane A motion was made by Councilmember Carroll, seconded by Councilmember Altieri, and unanimously passed (5-0) to approve the Consent Agenda as presented. 6. Mayor’s Report Mayor Foley reported on Friday’s temporary one-hour closure of Highway A1A, as well as a fallen tree that damaged a water main and disrupted services over the weekend. He referred to Town Manger Harpring for a detailed update. He then addressed pending legislation related to property tax reform and utility fees. He noted that no action on property tax changes is expected during the current session, and no dates for a special session had been announced. He expressed concern about utility franchise fees, specifically the additional charges imposed on residents of the Town because they reside outside the City of Vero Beach’s jurisdictional boundaries. He also expressed concern about the City transferring their enterprise funds into the general fund. Mayor Foley reported on the beach replenishment project underway in St. Lucie and their consideration of an offshore barrier to mitigate erosion. He reminded the Council that both Indian River Shores and the Town of Orchid had previously proposed similar concept but were told that because of geological conditions of the barrier island, it would not work. He suggested the Town revisit the idea. He reported that Vero Beach Vice Mayor Dingle had requested a voluntary DOGE audit of the City. Mayor Foley supported his request and hoped that the audit would include the City’s enterprise funds. Doing so would protect the residents of the Town of Indian River Shores since they do not have voting authority over the officials that set the rates.4

Page 3 of 6 Mayor Foley asked each Councilmember to reach out to Vice Mayor Dingle on an individual basis to express support. 7. Councilmember Items a. Vice Mayor Auwaerter – PFAS Strategies Vice Mayor Auwaerter gave a brief overview of the City of Vero Beach Utilities Commissions advisory role to the City Council. He reported that at a recent meeting of the Vero Beach Utilities Commission, Director Bolton presented findings from a study on PFAS detected in the Vero Beach water supply. He then reviewed a power point presentation outlining the results and the associated remediation strategies and costs which would be in addition to the constructions costs for the reclamation facility. A discussion followed. 8. Discussion with Possible or Probable Action a. Ordinance No. 587 – Short Term Vacation Rental Enforcement The title was read by Attorney Sweeney. Town Manager Harpring gave Staff’s report. A motion made by Councilmember Carroll was seconded by Councilmember Altieri to approve Ordinance No. 587 on first reading. The Town Clerk called the roll. All members present voted in the affirmative. The motion passed 5-0. b. Ordinance No. 588 – Establishment of Departments The title was read by Attorney Sweeney. Town Manager Harpring gave Staff’s report. A motion was made by Vice Mayor Auwaerter, was seconded by Councilmember Altieri to approve Ordinance No. 588 on first reading. The Town Clerk called the roll. All members present voted in the affirmative. The motion passed 5-0. c. Ordinance No. 589 – Repeal of Section 31.05 Contracts required for services. The title was read by Attorney Sweeney. Town Manager Harpring gave Staff’s report. A motion was made by Councilmember Carroll, was seconded by Councilmember Tedesko to approve Ordinance No. 589 on first reading. The Town Clerk called the roll. All members present voted in the affirmative. The motion passed 5-0. d. Appointment to Finance Committee for term expiring November 2026 There was a vacancy on the Finance Committee due to the appointment of Finance Committee member Peter Tedesko to the Town Council. The Town Clerk received applications from Robert “Rob” Stevenson and Theresa Morgan. Vice Mayor Auwaerter suggested the Town Council consider appointing Rob Stevenson as a full member to the Committee and Theresea Morgan as an alternate member to serve when a quorum was not available Further, he added that come November, long serving Finance Committee members Michael Ochsner and Robert Moore would be term limited, leaving three vacancies on the Committee.5

Page 4 of 6 Councilmember Tedesko noted he met with both candidates and was quite impressed with their qualifications. He supported Vice Mayor Auwaerter’s suggestion. Councilmember Carroll reiterated his prior support for Rob Stevenson and recommended his appointment to the Finance Committee. He noted that the Council had moved away from appointing alternates to committees. He stated that he had also met with Ms. Morgan. A brief discussion followed regarding the use and role of alternate members serving on the Town’s Committees. Vice Mayor Auwaerter moved to appoint Rob Stevenson as the full member of the Committee and Theresa Morgan as the alternate for a term expiring November 2026. Councilmember Altieri seconded the motion. Councilmember Carroll then moved, seconded by Mayor Foley, to appoint Mr. Stevenson as the full member of the Committee for the term expiring November 2026. Mayor Foley called for the vote. The first motion failed with two votes in favor (Vice Mayor Auwaerter and Councilmember Tedesko) and three votes opposed (Mayor Foley, Councilmember Carroll, and Councilmember Altieri). The vote was called on the second motion. The motion passed unanimously (5-0). e. Appointments to County and Regional Committees A motion was made by Vice Mayor Auwaerter, seconded by Councilmember Altieri, and unanimously passed (5-0) to appoint Councilmember Tedesko to complete the unexpired terms on the following Regional Committees: • Treasure Coast League of Cities: Full Member • City of Vero Beach Utilities Commission: Alternate Member • Affordable Housing Committee: Alternate Member • Elected Officials Oversight Committee: Alternate Member 9. Staff Updates a. Building Official Report & Statistics Town Manager Harpring was available to answer questions. b. Code Enforcement Report Town Manager Harpring was available to answer questions. c. Public Works Department Report Town Manager Harpring was available to answer questions. d. Town Treasurer Report Finance Director Heather Christmas was available to answer questions. e. Public Safety Department Report & Statistics Assistant Chief Ryer reported that the new ambulance was scheduled for delivery later that day and invited Council and Public to a “push in ceremony” the following morning. He noted6

Page 5 of 6 that several AEDs had been donated to the department and confirmed that the Town discontinued the use of fire suppressing contaminants in 2023. He also provided updates on recent water main leaks. Assistant Chief Ryer reminded all that a burn ban remained in effect due to extreme drought conditions. 10. Town Attorney Report Attorney Sweeney reported that the legislative session had reached its midpoint with1,859 bills filed and twenty-six having passed both houses. The Governor has released his proposed budget. Property tax reform legislation had not gained momentum. He will continue to monitor developments update Council. 11. Town Manager Report a. Sea Turtle Nesting Season Update Town Manager Harpring offered a Power Point presentation on information for the upcoming Sea Turtle nesting season beginning March 1, noting residents’ positive compliance with lighting requirements. He also reported dune plantings had begun at Beachcomber Lane and reminded everyone of the Public Safety’s push in ceremony scheduled for the next day. 12. Council/Committee Reports or Non-Action Items a. Call for Committee Reports, Informational Updates or Comments Mayor Foley reported on his attendance at the Treasure Coast Council of Local Governments which included a presentation on the St. Lucie Airport expansion. The airport currently contributes an estimated 550 million in economic impact annually. The School Board announced a potential increase of up to 200% in health insurance costs. Vice Mayor Auwaerter presented data showing that the Town of Indian River Shores contributes 18.1% of the County’s tax revenue, while only having 2.6 percent of the County’s population. He also reported on the Metropolitan Planning Organization’s Long-Term Transportation Plan and provided updates on public transportation ridership. Vice Mayor Auwaerter reported that he continued to work with FDOT on the crosswalk project south of Town and on A1A in front of the 7-11. He noted that serving on the MPO committee has helped move these projects along. 12. Call to Audience Cindy Diamond, 4865 Coventry Court, Vero Beach. Ms. Diamond addressed the Town Council on her nonprofit organization TNVR (Trap, Neuter, Vaccinate, Release) an animal welfare supported method for managing feral cats. Mayor Foley agreed to send a letter of support. 13. Adjournment7

Page 6 of 6 With no further business to come before the Town Council, the meeting adjourned at 10:51 a.m. Approved: March 26, 2026 Janice C. Rutan, Town Clerk8

AGENDA ITEM TO: Town Council FROM: James Harpring, Town Manager DATE: March 9, 2026 SUBJECT: Approval of Audited Financial Statements for the Fiscal Year Ended September 30, 2025 BACKGROUND: Pursuant to Florida Statute Section 218.39 and the Town Charter, the Town is required to conduct an annual independent financial audit. The firm of Carr, Riggs & Ingram, LLC was competitively selected to perform this audit. The Audited Financial Statements for the Fiscal year ended September 30, 2025, were presented to the Finance Committee on March 3, 2026. No changes were recommended following the Committee's review. RECOMMENDATION: Staff recommend the Town Council approve the Fiscal Year 2025Audited Financial Statements and the accompanying Auditor’s Report as presented. ATTACHMENTS: 1. Fiscal Year 2025 Annual Financial Statements 2. Auditor’s Required Communications Letter9 5b.

TOWN OF INDIAN RIVER SHORES, FLORIDA Basic Financial Statements and Supplemental Information Year ended September 30, 202510

TOWN OF INDIAN RIVER SHORES, FLORIDA Official Directory September 30, 2025 Town Council Brian T. Foley Mayor Robert F. Auwaerter Vice Mayor Jesse L. "Sam" Carroll, Jr Councilmember William Dane Councilmember James M. Altieri Councilmember Administration James Harpring, JD Town Manager Heather A. Christmas, CPA Town Treasurer Peter J. Sweeney, Jr. Town Attorney Janice Rutan, MMC Town Clerk Fred Held Building Official Tad Stone Public Safety Director11

TABLE OF CONTENTS Page INDEPENDENT AUDITOR’S REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS 5 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Position 17 Statement of Activities 19 Fund Financial Statements: Balance Sheet - Governmental Funds 20 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position 21 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 23 Statement of Fiduciary Net Position 24 Statement of Changes in Fiduciary Net Position 25 Notes to Financial Statements 26 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual - General Fund 80 Schedule of Changes in Net Pension Liability - General Employees Defined Benefit Plan 81 Schedule of Contributions - General Employees Defined Benefit Plan 82 Schedule of Changes in Net Pension Liability - Public Safety Officers and Firefighters Defined Benefit Plan 8312

TABLE OF CONTENTS (continued) Page Schedule of Contributions - Public Safety Officers and Firefighters Defined Benefit Plan 84 Schedule of Changes in Net Other Post-Employment Benefits Liability - Other Post-Employment Benefits Defined Benefit Plan 85 Schedule of Contributions - Other Post-Employment Benefits Defined Benefit Plan 86 Schedule of Investment Returns - Defined Benefit Pension Plans 87 Notes to Required Supplementary Information 88 SUPPLEMENTAL COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS General Fund Balance Sheets with Comparative Totals 92 Statements of Revenues, Expenditures and Changes in Fund Balances with Comparative Totals 93 Nonmajor Governmental Funds Combining Balance Sheets with Comparative Totals 95 Combining Statements of Revenues, Expenditures and Changes in Fund Balances with Comparative Totals 96 Fiduciary Funds Pension Trust Funds - Statements of Fiduciary Net Position with Comparative Totals 98 Pension Trust Funds - Statements of Changes in Fiduciary Net Position with Comparative Totals 99 Combining Statement of Plan Net Position & Changes in Net Position - Year Ended September 30, 2025 100 Combining Statement of Plan Net Position & Changes in Net Position - Year Ended September 30, 2024 10113

TABLE OF CONTENTS (continued) Page OTHER INFORMATION AND REPORTS Schedule of Property Tax Valuations, Levies and Collections 103 IMPACT FEE AFFIDAVIT 104 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 105 INDEPENDENT AUDITOR’S MANAGEMENT LETTER 107 INDEPENDENT ACCOUNTANT’S REPORT ON INVESTMENT COMPLIANCE 10814

1 INDEPENDENT AUDITOR’S REPORT To the Honorable Members of the Town Council Town of Indian River Shores, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Indian River Shores, 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, each major fund, and the aggregate remaining fund information of the Town of Indian River Shores, Florida, 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 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 Town of Indian River Shores, Florida 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 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 Town of Indian River Shores, Florida’s ability to continue as a going concern for twelve months beyond the15

2 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 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 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 generally accepted auditing standards and Government Auditing Standards, 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 Town of Indian River Shores, Florida’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 Town of Indian River Shores, Florida’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, changes in net other16

3 post-employment benefits liability, other post-employment benefits contributions, changes in net pension liability, pension contributions and investment returns as listed in the table of contents 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Indian River Shores, Florida’s basic financial statements. The accompanying combining and individual fund financial statements 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 combining and individual fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Schedule of Property Tax Valuations, Levies and Collection and the Impact Fee Affidavit, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic 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 basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic 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.17

4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 3, 2026, on our consideration of the Town of Indian River Shores, Florida’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town of Indian River Shores, Florida’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 of Indian River Shores, Florida’s internal control over financial reporting and compliance. Carr, Riggs & Ingram, LLC Melbourne, Florida March 3, 202618

TOWN OF INDIAN RIVER SHORES MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 This discussion and analysis is designed as an overview of the financial condition and activities of the Town of Indian River Shores, Florida (the “Town”). The analysis provides summary financial information for the Town and should be read in conjunction with the accompanying financial statements and notes to the financial statements. Both current and prior year information is provided where appropriate to facilitate comparative analysis. FINANCIAL HIGHLIGHTS  Total net position at September 30, 2025 was $21,333,875. Of this amount, $9,588,551 (unrestricted net position) may be used to meet the Town’s ongoing obligations to citizens and creditors.  The combined ending fund balance of the governmental funds totaled $8,449,414.  The total revenues from all governmental fund sources were $10,897,935, an increase of $702,050 or 6.9% from the previous year.  The total expenditures for Town operations were $10,666,965, an increase of $1,736,928 or 19.5% from the previous year.  By year end, the Town’s total governmental funds net increase in fund balance was $334,766. The net increase in fund balance in the General Fund was $164,908.  In the General Fund, actual revenues were $8,856 below the final budget, and actual expenditures were $320,163 below final appropriations.  The Town implemented GASB Statement No. 101, Compensated Absences, during fiscal year 2025. Amounts from the prior year have been restated to reflect this change, resulting in a prior period adjustment to beginning balances. See Notes A-18 and M to the Basic Financial Statements for additional information.  During fiscal year 2025, the Town recognized an impairment loss of $355,563 related to an electrical fire involving a newly acquired ambulance and related equipment. Based on information available at year end, the Town recorded an estimated insurance recovery receivable of $355,584. See Note C to the Basic Financial Statements for additional information. OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of a series of financial statements. The Town’s basic financial statements are comprised of three components: 1) government-wide 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.519

1) Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances.  The statement of net position presents information on all of the Town’s assets and deferred outflows alongside liabilities and deferred inflows, with the difference reported as the net position. Over time, increases or decreases in net position can serve as a useful indicator of the Town’s financial position.  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 result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused sick leave).  The government-wide financial statements distinguish governmental activities (generally supported by taxes, certain fees, and intergovernmental revenues) from business-type activities (generally supported by user fees). The Town does not have business-type activities; therefore, all Town activities are reported as governmental activities for the fiscal year ended September 30, 2025. 2) 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 two categories: 1) governmental funds and 2) fiduciary 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 expendable resources, as well as on balances of expendable resources available at the end of the fiscal year. Such information can be useful in evaluating a government’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, the long-term impact of the government’s near-term financing decisions is better understood. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains six governmental funds. The General Fund is the only major fund because it is the Town’s primary operating fund and meets major-fund reporting criteria. The remaining funds—Planning, Zoning and Building; ARPA; Road and Offsite Drainage; Bike Path and Pedestrian Way; and Law Enforcement Forfeiture—are aggregated and presented as nonmajor governmental funds. The ARPA Fund and the Planning, Zoning and Building Fund were major funds in fiscal year 2024 but are presented as nonmajor governmental funds in fiscal year 2025 because they no longer meet the quantitative thresholds for major-fund reporting. This change reflects higher overall governmental fund totals in fiscal year 2025 and reduced grant-related activity in the ARPA Fund.620

The Town adopted an annual appropriated budget for each major fund for the fiscal year ended September 30, 2025. Budgetary comparison schedules have been provided for this fund to demonstrate the level of compliance with the budget. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. 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. These funds include several employee benefit trust funds. Town Council members sit as the appointed Pension Board Trustees, or fiduciaries, for the Town’s General Employee Defined Benefit Plan and Other Post-Employment Benefit Plan. The Public Safety Employees Defined Benefit Plan has a separate pension board and the Town’s Defined Contribution Plan has no requirement for a pension board. The Town uses a third party as administrator of its pension plans. The plan administrator is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Individual fund data for each of the fiduciary funds is combined in the accompanying fiduciary fund financial statements. 3) Notes to the financial statements. The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Reference to the appropriate corresponding note is made next to certain line items on the face of the financial statements.721

GOVERNMENT-WIDE FINANCIAL ANALYSIS Comparative data for fiscal years ending September 30, 2025 and 2024 are shown below. 2025 2024 Current assets 9,623,281$ 9,078,298$ Capital assets, net of depreciation 10,782,281 9,834,355 Non-current assets 4,379,197 3,449,084 Total assets 24,784,759 22,361,737 Deferred outflows 941,344 635,339 Current liabilities 483,162 558,815 Non-current liabilities 474,001 285,006 Total liabilities 957,163 843,821 Deferred inflows 3,435,065 2,696,277 Net position: 10,592,622 9,700,131 Restricted 1,152,702 1,813,476 Unrestricted 9,588,551 7,943,371 Total net position 21,333,875$ 19,456,978$ TOWN OF INDIAN RIVER SHORES' NET POSITION September 30 Governmental Activities Investment in capital assets, net of related debt The Statement of Net Position is a useful indicator of a governmental entity’s financial health and stability over time. The Town experienced a net increase in the net position for fiscal year 2025 of $2,111,423. The Town, for both fiscal years, reports positive balances in all categories of net position in its governmental activities. The Town’s unrestricted net position at September 30, 2025 increased by $1,645,180 (21%) over fiscal year 2024. Restricted net position decreased during fiscal year 2025 by $660,774 (36%). The Town’s net investment in capital assets increased in fiscal year 2025 by $892,491 (9%) over fiscal year 2024. The investment in capital assets comprised 50% of the net position for fiscal year ending September 30, 2025. Capital and leased assets, including subscription‐based technology arrangements (SBITAs) as defined in Note A-9, are used to provide services to citizens and are not available for future spending. Although the investment in capital assets is reported net of any related debt, it should be noted that the resources needed to repay any related debt must be provided from other sources, since the assets themselves cannot be used to liquidate those liabilities, should they ever exist. For fiscal year 2025, there were $62,532 in obligations associated with capital assets and SBITAs.822

Net investment in capital assets increased in 2025 primarily due to the public safety building remodel; this increase was partially offset by current-year depreciation and amortization. The restricted net position represents resources that are subject to external restrictions on how they may be used. The road construction and maintenance restricted net position is generated by the Road and Offsite Drainage Fund while amounts restricted for administration and enforcement of the building code are generated in the Planning, Zoning and Building Fund. For 2025, building permit collections were more than the department expenses by $150,167. In order to ensure the fund balance is below approximately one year’s worth of operating costs as required under Florida Statutes, the Town continuously monitors the fund balance and will adjust fees as needed. Finally, the Town received revenue, which may only be used for specified capital expenditures. During fiscal year 2025, restricted net position related to this revenue decreased by $830,032, primarily as the Town funded the Public Safety Building remodel and the purchase of new public safety vehicles; combined eligible expenditures for these projects totaled $1,674,149, compared to $864,685 in revenues received during the year. The increase in unrestricted net position of $1,645,180 is intended to support infrastructure reinvestment, completion of ongoing projects, and emergency/disaster response needs. Fiscal year 2025 saw an increase of $306,005 in the deferred outflows of resources and $738,788 in the deferred inflows of resources compared to 2024. These amounts primarily relate to the amortization of prior-year gains and losses and deferral of current-year gains in excess of expectations for the Town’s three defined benefit plans under GASB 68 and GASB 75. See Notes H and I to the financial statements for additional information regarding deferred inflows and outflows of resources. Additionally, under GASB 68, the Town is required to report the net pension liability (or net pension asset) on the face of its financial statements. At September 30, 2025, the Town reported net pension assets of $392,383 for the General Employee Defined Benefit Plan and $2,524,270 for the Public Safety Officers and Firefighters Defined Benefit Plan. This represents an improvement of $497,749 from the combined net pension asset of $2,418,904 reported at September 30, 2024, primarily due to investment gains. See Note H in the financial statements for further information regarding the Town’s two defined benefit pension plans. Finally, under GASB 75, the Town is required to report the net other post-employment benefits (“OPEB”) liability (or net OPEB asset) on the face of its financial statements. At September 30, 2025, the Town reported a net OPEB asset of $1,462,544. This reflects an increase of $432,364 from the prior year, due primarily to investment gains, retiree buyouts, and demographic changes. See Note I in the financial statements for further information regarding OPEB.923

ANALYSIS OF TOWN’S OPERATIONS The following table provides a summary of the Town’s operations for the year ended September 30, 2025 and 2024. 2025 2024 Revenues: Program revenues: Charges for services 1,458,469$ 1,549,720$ Operating grants and contributions 159,924 207,892 Capital grants and contributions 253,978 315,193 General revenues: Property taxes 6,789,130 5,991,083 Discretionary sales surtax 864,685 838,733 Half-cent sales tax 410,901 409,492 Communications services tax 357,495 325,949 Other taxes 7,331 7,381 State shared revenues 104,515 102,772 Interest income 417,697 487,563 Miscellaneous revenue 10,865 16,936 Loss on disposal of assets (70,928) (8,611) Total revenues 10,764,062 10,244,103 Expenses: General government 3,139,685 2,664,322 Public safety 5,336,357 5,555,528 Physical environment 78,136 21,855 Transportation 45,432 56,443 Culture and recreation 49,168 53,599 Interest on long-term debt 3,861 5,917 Total expenses 8,652,639 8,357,664 Change in net position 2,111,423 1,886,439 Net position beginning of fiscal year 19,456,978 17,570,539 Prior period adjustment (234,526) - Net assets beginning of fiscal year (restated) 19,222,452 17,570,539 Net position end of fiscal year 21,333,875$ 19,456,978$ TOWN OF INDIAN RIVER SHORES' CHANGES IN NET POSITION All Governmental Activities In 2025, revenues increased by $519,959 (5%) compared to 2024. This growth was mainly attributed to higher property values. However, this was partially offset by a reduction in permit fees and grant revenues, particularly the ARPA grant. Expenses during fiscal year 2025 exceeded those in 2024 by $294,975 (3%), driven primarily by payroll increases, the full-year impact of staffing additions, and costs related to the comprehensive plan update. Fiscal year 2025 results also reflect the GASB 101 implementation and the estimated impairment loss as described in Notes A-18 and C-2, respectively.1024

The following table depicts the program revenues collected for the current fiscal year, compared to the related program expenses. Revenues Expenses Net (Expenses) Revenues General government: Town council -$ 92,094$ (92,094)$ Town manager - 321,017 (321,017) Finance department - 396,070 (396,070) Town clerk - 183,871 (183,871) Postal center 191,766 257,704 (65,938) Public works 600 455,982 (455,382) Town attorney - 330,454 (330,454) Planning board 2,600 100,978 (98,378) Engineering and planning services 33,200 241,045 (207,845) General administration 8,450 533,178 (524,728) Information technology - 227,292 (227,292) Public safety: Public safety department 402,866 4,502,426 (4,099,560) Building department 1,084,813 833,931 250,882 Physical environment Cemetery 3,975 78,136 (74,161) Transportation Road and offsite drainage 115,411 45,432 69,979 Culture and recreation Community center 28,690 49,168 (20,478) Interest on long-term debt - 3,861 (3,861) 1,872,371$ 8,652,639$ (6,780,268)$ TOWN OF INDIAN RIVER SHORES Expenses and Program Revenues-Governmental Activities Fiscal year ended September 30, 2025 The Town’s revenues are derived from multiple sources and are influenced by a range of economic and statutory factors. For fiscal year 2025, the primary revenue source was property taxes, which represented 63% of total revenues, as authorized under the Florida Constitution. Sales tax-related revenues represented 15% of total revenues for fiscal year 2025. These revenues include the half-cent sales tax (state shared revenue), which represents the Town’s formula-based share of a statewide sales tax distribution from the State of Florida and is generally available for municipal purposes; the discretionary sales surtax, which represents the Town’s share of the County voter-approved local option infrastructure surtax and is legally restricted to eligible capital and infrastructure purposes (this surtax is sometimes referred to as the “infrastructure sales tax”); and the communications services tax, which is a local tax on communications services, such as telephone and cable, that is collected and remitted by service providers and is generally available for municipal purposes.1125

Charges for services consist of user fees paid by individuals and businesses for specific services provided by the Town. For fiscal year 2025, the Town’s charges for services primarily included building related fees, ambulance transport fees, and postal fees and represented about 14% of total revenues. For fiscal year 2025, the Town also used federal and state grant revenues, which represented 4% of total revenues, to complete several projects. This mix of revenue sources for the fiscal year ended September 30, 2025 is illustrated in the following chart. FINANCIAL ANALYSIS OF THE TOWN OF INDIAN RIVER SHORES’ FUNDS As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of expendable resources. Such information is useful in assessing financing requirements. Unassigned fund balances may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of September 30, 2025, the Town of Indian River Shores’ governmental funds reported combined fund balances of $8,449,414.1226

The General Fund is the chief operating fund of the Town. At September 30, 2025, the total fund balance in the General Fund was $7,562,374 (90% of the total governmental fund balance), of which 73% was unassigned, which is a measurement of the General Fund’s liquidity. The General Fund’s net increase in fund balance was $164,908. The Town’s primary revenue source, property taxes, increased by $798,047 however, this increase was offset by increased capital expenditures which included the public safety building remodel. Special revenue funds are used to account for specific revenues and expenditures. For fiscal year 2025, the ARPA Fund and the Planning, Zoning and Building Fund are reported within nonmajor governmental funds rather than as major funds. Both funds were presented as major funds in fiscal year 2024; however, in fiscal year 2025 they no longer met the GASB major-fund criteria due to reduced activity levels. In 2025, the Town’s special revenue funds are aggregated and comprise 10% of total governmental fund balance. BUDGETARY HIGHLIGHTS Budget-to-actual schedules are provided in the required supplementary information for each of the major funds. A budget column for both the original budget adopted for fiscal year ended 2025, as well as the final budget, is presented. A column for actual results follows those columns, with the variance then following as well. Both original and final budgets are estimates based on information available to management prior to and just after year end. Changes between the original and final General Fund budget increased revenues of $188,950 and an increase in appropriations by $306,235. Revenue changes were a result of an increase in revenues that exceeded initial estimates. This included property taxes, state revenues, ambulance fee collections and interest revenues. The changes in expenditures from the original budget are primarily due to the increase capital outlay expenditure due work carried out on the remodel of the public safety building. The Town’s budgeted revenues exceeded actual revenues by $8,856 (0.1% of the final budget). This was primarily a result of state revenues and ambulance service fees being less than projected. Projected expenditures exceeded actual expenditures by $320,163 (3.3% of the final budget). This was due to a built-in contingency for the unknown nature of the litigation costs and other departmental expenditures that may be incurred or submitted after fiscal year end.1327

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets: The Town of Indian River Shores’ investment in capital assets includes land, construction in progress, buildings, improvements other than buildings (which include infrastructure), furniture, fixtures and equipment, assets under capital leases and SBITA assets. The Town’s capital assets as of September 30, 2025 reflect an investment of $10,782,281 net of accumulated depreciation and amortization. A comparative summary of net capital assets by category follows: Capital Assets at Year End (net of depreciation and amortization) 2025 2024 Difference Land 1,303,482$ 1,303,482$ -$ Construction in progress 1,691,454 593,073 1,098,381 Buildings 2,803,558 2,892,699 (89,141) Improvements other than buildings 3,306,598 3,488,137 (181,539) Furniture, fixtures and equipment 1,565,070 1,434,841 130,229 Furniture, fixtures and equipment under capital leases 65,634 82,568 (16,934) Software (SBITA) 46,485 39,555 6,930 Total capital assets 10,782,281$ 9,834,355$ 947,926$ Major capital asset events during the current fiscal year include the following:  Public Safety building remodel: $1,138,000  Public Safety vehicles acquisition: $536,000  Council chamber AV upgrade: $158,000  Public Safety equipment purchases: $54,000  Roadway engineering: $38,000  Depreciation/amortization expense: $678,000  Loss on disposal of assets: $71,000 Additional information on the Town’s capital assets can be found in Note C. Long-term Debt: At the end of the fiscal year 2025, the Town had outstanding debt of $62,532. The comparative summary of the outstanding debt by category is as follows: Outstanding Debt at Year End 2025 2024 Difference Leases payable 40,521$ 68,713$ (28,192)$ SBITAs 22,011 22,366 (355) Total outstanding debt 62,532$ 91,079$ (28,547)$ During fiscal year 2025, the Town entered into a 2-year capital lease for additional in-car cameras for $18,855. Additionally, the Town added $35,708 in new SBITA arrangements in 2025. The1428

variations shown above are due to new arrangements and the related principal repayments. Further details regarding the Town’s obligations are available in Note E. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The Town's elected and appointed officials considered many factors when setting the fiscal year 2026 budget, tax rates and fees to be charged for certain activities. One of those factors is the local economy. Assessed property values in the Town have experienced significant growth. As of January 1, 2025, the estimated taxable valuation was $5.76 billion, including adjustments for homestead properties, reflecting a 9.4% increase over the previous fiscal year. For fiscal year 2026, the ad valorem property tax rate decreased from 1.3349 mills to 1.2810 mills ($1.2810 per $1,000 of assessed valuation). Staffing levels for 2026 are budgeted to remain relatively stable. The Town completed its collective bargaining prior to September 30, 2025 and increased salaries approximately 18% for its first responders for the first year of its contract. Finally, a provision for a merit pool ranging from 5% to 7% has been included for Town administrative employees. As of September 30, 2025, the Town's unassigned fund balance for the General Fund amounts to $5,488,368. The General Fund is anticipated to be adequate to accommodate unforeseen expenses in the forthcoming budget year. This balance will cover more than eight months of the General Fund’s 2026 non-capital budgeted expenditures. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Town of Indian River Shores for those interested in the Town’s finances. Questions concerning the information provided in this report or requests for additional information should be addressed to the Town’s Finance Department, Town of Indian River Shores, 6001 A1A, Indian River Shores, Florida, 32963-1014, or hchristmas@irshores.com.1529

BASIC FINANCIAL STATEMENTS1630

Town of Indian River Shores, Florida STATEMENT OF NET POSITION September 30, 2025 Governmental Activities ASSETS Cash and cash equivalents (Notes A-4, B) 516,600$ Investments (Notes A-4, B) 8,126,616 Accounts receivable, net (Note A-5) 34,817 Due from other governments (Note A-5) 278,530 Insurance recoveries receivable (Notes A-5, C-2) 355,584 Inventory (Note A-6) 35,488 Prepaid expenses (Note A-6) 275,646 Total current assets 9,623,281 Capital assets, not being depreciated (Notes A-7, C): Land 1,303,482 Construction in progress 1,691,454 Capital assets, net of accumulated depreciation and amortization (Notes A-7, C): Buildings 2,803,558 Improvements other than buildings 3,306,598 Furniture, fixtures and equipment 1,565,070 Furniture, fixtures and equipment under capital leases 65,634 Software (SBITA) 46,485 Total capital assets, net 10,782,281 Noncurrent assets: Net pension assets (NPA) (Notes A-13, H) 2,916,653 Net other post employment benefit assets (Notes A-13, I) 1,462,544 Total noncurrent assets 4,379,197 Total assets 24,784,759 DEFERRED OUTFLOWS OF RESOURCES Deferred change in proportion (NPA/NPL), assumptions, contributions, and experience (Note A-11,H, I) 941,344 Total deferred outflow of resources 941,344 The accompanying notes are an integral part of this financial statement.1731

Town of Indian River Shores, Florida STATEMENT OF NET POSITION (continued) September 30, 2025 Governmental Activities LIABILITIES Accounts payable 163,306 Retainage payable 127,127 Accrued liabilities 166,461 Accrued interest payable 1,774 Due to other governments 15,289 Deposits 4,961 Other unearned revenues 4,244 Total current liabilities 483,162 Noncurrent liabilities: Due within one year Compensated absences (Notes A-10, E) 264,737 Capital lease obligation (Notes A-8, E) 40,521 Software liability (Notes A-9, E) 8,921 Due in more than one year Compensated absences (Notes A-10, E) 146,732 Software liability (Notes A-9, E) 13,090 Total noncurrent liabilities 474,001 Total liabilities 957,163 DEFERRED INFLOWS OF RESOURCES Deferred change in proportion (NPA/NPL), contributions, experience and investments (Notes A-11, H, I) 3,115,435 Prepaid celltower lease (Note G) 319,630 Total deferred inflow of resources 3,435,065 NET POSITION Investment in capital assets, net of related debt 10,592,622 Restricted for road construction and maintenance 56,486 Restricted for building code enforcement 801,072 Restricted for law enforcement 19 Restricted for capital outlay 295,125 Unrestricted 9,588,551 Total net position 21,333,875$ The accompanying notes are an integral part of this financial statement.1832

Town of Indian River Shores, Florida STATEMENT OF ACTIVITIES Year ended September 30, 2025 Function/Program Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Net (Expense) Revenue and Changes in Net Position Governmental activities: General government: Town council 92,094$ -$ -$ -$ (92,094)$ Town manager 321,017 - - - (321,017) Finance department 396,070 - - - (396,070) Town clerk 183,871 - - - (183,871) Postal center 257,704 191,766 - - (65,938) Public works 455,982 600 - - (455,382) Town attorney 330,454 - - - (330,454) Planning board 100,978 2,600 - - (98,378) Engineering and planning services 241,045 - 33,200 - (207,845) General administration 533,178 8,450 - - (524,728) Information technology 227,292 - - - (227,292) Public safety: Public safety department 4,502,426 131,171 17,717 253,978 (4,099,560) Building department 833,931 1,084,813 - - 250,882 Physical environment 78,136 3,975 - - (74,161) Transportation 45,432 6,404 109,007 - 69,979 Culture and recreation 49,168 28,690 - - (20,478) Interest on long-term debt 3,861 - - - (3,861) Total 8,652,639$ 1,458,469$ 159,924$ 253,978$ (6,780,268) General revenues: Taxes: Property taxes (Note A-14) 6,789,130 Discretionary sales surtax 864,685 Half-cent sales tax 410,901 Communications services tax 357,495 Other taxes 7,331 State shared revenues 104,515 Interest income 417,697 Miscellaneous revenue 10,865 Loss on disposal of assets (Note C) (70,928) Total general revenues 8,891,691 Change in net position 2,111,423 Beginning net position 19,456,978 Prior period adjustment (Notes A-18, M) (234,526) Beginning net assets, restated 19,222,452 Ending net position 21,333,875$ Program Revenues The accompanying notes are an integral part of this financial statement.1933

Town of Indian River Shores, Florida BALANCE SHEET - GOVERNMENTAL FUNDS September 30, 2025 General Other Governmental Funds Total Governmental Funds ASSETS Cash and cash equivalents (Notes A-4, B) 516,600$ -$ 516,600$ Investments (Notes A-4, B) 7,236,833 889,783 8,126,616 Accounts receivable, net (Note A-5) 34,817 - 34,817 Due from other governments (Note A-5) 265,984 12,546 278,530 Insurance recoveries receivable (Notes A-5, C-2) 355,584 - 355,584 Inventory (Note A-6) 35,488 - 35,488 Prepaid expenses (Note A-6) 275,646 - 275,646 Total assets 8,720,952$ 902,329$ 9,623,281$ LIABILITIES Liabilities: Accounts payable 163,306$ -$ 163,306$ Retainage payable 127,127 - 127,127 Accrued liabilities 166,461 - 166,461 Due to other governments - 15,289 15,289 Deposits 4,961 - 4,961 Other unearned revenue 4,244 - 4,244 Total liabilities 466,099 15,289 481,388 DEFERRED INFLOWS OF RESOURCES Prepaid celltower lease (Note G) 319,630 - 319,630 Unavailable revenue 372,849 - 372,849 Total deferred inflows of resources 692,479 - 692,479 FUND BALANCES (Notes A-15, F): Nonspendable: Prepaids 275,646 - 275,646 Inventory 35,488 - 35,488 Restricted: Building code enforcement - 801,072 801,072 Capital outlay 295,125 - 295,125 Law enforcement - 19 19 Road construction and maintenance - 56,486 56,486 Committed: Bike path construction and maintenance - 29,463 29,463 Assigned: Celltower removal 117,973 - 117,973 Infrastructure replacement 1,349,774 - 1,349,774 Unassigned 5,488,368 - 5,488,368 Total fund balances 7,562,374 887,040 8,449,414 Total liabilities, deferred inflow of resources and fund balances 8,720,952$ 902,329$ 9,623,281$ The accompanying notes are an integral part of this financial statement.2034

Town of Indian River Shores, Florida RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2025 Fund balances - total governmental funds 8,449,414$ The net position reported for governmental activities in the statement of net position is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Those assets consist of: Land 1,303,482$ Construction in progress 1,691,454 Buildings, net 2,803,558 Improvements other than buildings, net 3,306,598 Furniture, fixtures and equipment, net 1,565,070 Furniture, fixtures and equipment under capital leases, net 65,634 Software asset, net 46,485 10,782,281 Long-term assets and liabilities are not available to pay for current period expenditures and, therefore, are not reported in the funds. Those assets consist of: Net other post-employment benefit assets 1,462,544 Net pension assets 2,916,653 Some items are recorded as revenues and expenditures in the fund statement when paid or when received. These items are recorded on the government-wide statements when incurred in the case of expenditures and when revenues are earned. Deferred inflows for ambulance receivable 14,545 Deferred inflows for insurance recoveries receivable 355,584 Deferred inflows for state revenues 2,720 372,849 Deferred amounts are reported in the Statement of Net Position as deferred outflows or deferred inflows of resources but are not reported in the funds. Those deferred amounts consist of: Deferred assumptions, contributions, change in proportion (NPL), and experience 941,344 Deferred change in proportion (NPL), contributions, experience, and investments (3,115,435) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Those liabilities consist of: Compensated absences (411,469) Capital lease obligation (40,521) Software liability obligation (22,011) Accrued interest payable (1,774) Total net position of governmental activities 21,333,875$ The accompanying notes are an integral part of this financial statement.2135

Town of Indian River Shores, Florida STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Year ended September 30, 2025 General Planning, Zoning, and Building (1) ARPA (1) Other Governmental Funds Total Governmental Funds REVENUES Property taxes (Note A-14) 6,789,130$ -$ -$ -$ 6,789,130$ State shared revenues 104,515 - - 34,839 139,354 Discretionary sales surtax 864,685 - - - 864,685 Communication services tax 357,495 - - - 357,495 Intergovernmental 425,227 - - 77,755 502,982 Federal grant revenue 13,822 - - 240,156 253,978 St