John’ s Island Club, Inc. Notes to Financial Statements
Note 10. Employee Benefit Plans( Continued)
Deferred compensation liabilities of approximately $ 2,931,000 and $ 3,195,000 have been accrued as of December 31, 2025 and 2024, respectively. The funded deferred compensation totaled approximately $ 2,934,000 and $ 3,186,000 for the years ended December 31, 2025 and 2024, respectively, and are presented on the statements of financial position as investments of funded deferred compensation. Investments are presented on the statements of financial position at fair value. Participant contributions are held in individual investment accounts. As directed by the participant, the investment options include target date funds, mutual funds, index funds and money market accounts. The deferred compensation plans call for the distribution of cash over various time-periods. In accordance with the plan document, distributions have commenced.
Note 11. Commitment and Contingency
Irrigation water supply agreement: In December 2025, construction of the pipeline was completed in accordance with the terms of the executed agreement with John’ s Island Water Management, Inc.( JIWM) for the delivery of irrigation water sourced from the City of Vero Beach. Under the agreement, the Club is entitled to receive an average of 200,000 gallons per day and pays a take-or-pay charge based on the rate per thousand gallons charged to JIWM by the City. The Club is responsible for all infrastructure and distribution on its side of the delivery point. The agreement includes provisions limiting JIWM’ s liability for interruptions in supply and remains in effect through February 1, 2052. The Club’ s portion of the related pipeline construction cost was approximately $ 1,115,000 for the year ended December 31, 2025, is included in other assets on the statement of financial position, and will be amortized monthly beginning December 2025 through the end of the contract term.
Geographical risk: The Club’ s location on the southeastern coast of Florida exposes it to hurricanes. The Club’ s insurance policies were renewed through May 10, 2026. The Club’ s policy is to mitigate the risk of damages through appropriate insurance coverage for windstorm damage. Losses from future catastrophic events could require funding from existing reserves and / or special member assessments.
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