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03-13-2025 VC REG-A with attachments VILLAGE OF NORTH PALM BEACH REGULAR SESSION AGENDA VILLAGE HALL COUNCIL CHAMBERS THURSDAY, MARCH 13, 2025 501 U.S. HIGHWAY 1 6:00 PM Susan Bickel Deborah Searcy Lisa Interlandi Kristin Garrison Orlando Puyol Mayor Vice Mayor President Pro Tem Councilmember Councilmember Chuck Huff Leonard G. Rubin Jessica Green Village Manager Village Attorney Village Clerk INSTRUCTIONS FOR “WATCH LIVE” MEETING To watch the meeting live please go to our website page (link provided below) and click the “Watch Live” link provided on the webpage: https://www.village-npb.org/CivicAlerts.aspx?AID=496 ROLL CALL PLEDGE OF ALLEGIANCE ADDITIONS, DELETIONS, AND MODIFICATIONS TO THE AGENDA APPROVAL OF MINUTES 1. Minutes of the Regular Session held February 13, 2025 COUNCIL BUSINESS MATTERS 2. ADMINISTRATION OF COUNCILMEMBER OATHS 3. NOMINATION OF OFFICERS - MAYOR, VICE MAYOR, PRESIDENT PRO TEM 4. RESOLUTION APPOINTING COUNCIL OFFICERS 5. ADMINISTRATION OF OFFICER OATHS - MAYOR, VICE MAYOR, PRESIDENT PRO TEM STATEMENTS FROM THE PUBLIC, PETITIONS AND COMMUNICATIONS Members of the public may address the Council concerning items on the Consent Agenda or any non agenda item under Statements from the Public. Time Limit: 3 minutes Members of the public who wish to speak on any item listed on the Regular Session or Workshop Session Agenda will be called on when the issue comes up for discussion. Time Limit: 3 minutes Anyone wishing to speak should complete a Public Comment Card (on the table at back of Council Chambers) and submit it to the Village Clerk prior to the beginning of the meeting. Regular Session Agenda, March 13, 2025 Page 2 of 2 REPORTS (SPECIAL COMMITTEES AND ADVISORY BOARDS) CONSENT AGENDA The Consent Agenda is for the purpose of expediting issues of a routine or pro -forma nature. Councilmembers may remove any item from the Consent Agenda, which would automatically convey that item to the Regular Agenda for separate discussion and vote. 6. RESOLUTION – Amending the Comprehensive Pay Plan adopted as part of the Fiscal Year 2025 Budget to reclassify the Full-Time Parks Supervisor position to the Full-Time Recreation Supervisor position, add One Full-Time Communications Specialist position and remove one Full-Time Fire Inspector position; Reclassify the Pay Grade of the Full-Time Facilities Manager position, reclassify the Full-Time Building Official position to a Full-Time Building Director position, and eliminate the Community Development Director position. 7. Receive for file Minutes of the Golf Advisory Board meeting held 1/13/25. 8. Receive for file Minutes of the Waterways Board meeting held 1/28/25. 9. Receive for file Minutes of the Environmental Committee meeting held 2/10/25. DECLARATION OF EX PARTE COMMUNICATIONS PUBLIC HEARINGS AND QUASI-JUDICIAL MATTERS 10. 1ST READING OF ORDINANCE 2025-06 – CODE AMENDMENT – COUNTRY CLUB Consider a motion to adopt on first reading Ordinance 2025-06 amending Chapter 9, "Country Club" of the Village Code of Ordinances by amending Sections 9-1 and 9-2 of Article I "In General" to update the General Rules and Regulations Applicable to the North Palm Beach Country Club and the Enforcement thereof. OTHER VILLAGE BUSINESS MATTERS 11. RESOLUTION – ACCEPTANCE OF FY 2024 AUDIT REPORT Consider a motion to adopt a resolution accepting the Annual Comprehensive Financial Report prepared by the Village Auditor for Fiscal Year ending September 30, 2024; and authorizing its filing with the State. COUNCIL AND ADMINISTRATION MATTERS MAYOR AND COUNCIL MATTERS/REPORTS VILLAGE MANAGER MATTERS/REPORTS ADJOURNMENT If a person decides to appeal any decision by the Village Council with respect to any matter considered at the Village Counci l meeting, he will need a record of the proceedings, and for such purpose he may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based (F.S. 286.0105). In accordance with the Americans with Disabilities Act, any person who may require special accommodation to participate in this meeting should contact the Village Clerk’s office at 841-3355 at least 72 hours prior to the meeting date. This agenda represents the tentative agenda for the scheduled meeting of the Village Council. Due to the nature of governmental duties and responsibilities, the Village Council reserves the right to make additions to, or deletions from, the items contained in this agenda. DRAFT MINUTES OF THE REGULAR SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA FEBRUARY 13, 2025 Present: Susan Bickel, Mayor Deborah Searcy, Vice Mayor Lisa Interlandi, President Pro Tem Kristin Garrison, Councilmember Orlando Puyol, Councilmember Chuck Huff, Village Manager Len Rubin, Village Attorney Jessica Green, Village Clerk ROLL CALL Mayor Bickel called the meeting to order at 6:00 p.m. All members of Council were present except for Vice Mayor Searcy who was arriving later. All members of staff were present. PLEDGE OF ALLEGIANCE Mayor Bickel led the public in the Pledge. AWARDS AND RECOGNITION Mayor Bickel presented an Appreciation for Years of Service Award to Retired Police Chief Richard Jenkins for serving the Village of North Palm Beach for 12 years. Mr. Jenkins accepted his award and thanked Council. Vice Mayor Searcy arrived to the meeting at approximately 6:07 p.m. Resident Patricia Friedman Solodar and Village of North Palm Beach Police Sergeants Lou Pearson and Keith Koenig expressed their gratitude to Retired Police Chief Jenkins. Mayor Bickel read a Proclamation for 211 Awareness Month. Ms. Patrice Schroeder, 211 Community Relations Specialist accepted the proclamation and thanked Council. STATEMENTS FROM THE PUBLIC Russell Beverstein, 415 U.S.1 #210, expressed his concerns regarding the Country Club restaurant’s hours of operation. Mary Phillips, Kendra Zellner and George Alger, on behalf of the Environmental Committee and Waterways Board gave an update and discussed the upcoming Oyster Garden Event on Saturday, February 15th at Anchorage Park and the free Speaker Series event on February 22nd at the Country Club regarding water conservation, oyster gardens and marine eco -systems. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 2 of 10 STATEMENTS FROM THE PUBLIC continued Rita Budnyk, on behalf of the Recreation Advisory Board, discussed the upcoming Heritage Day Festival on April 4th and 5th and encouraged residents to volunteer and participate. CONSENT AGENDA APPROVED Item 3 was removed from the Consent Agenda and placed on the Regular Agenda. Thereafter, Councilmember Puyol moved to approve the Consent Agenda as amended and President Pro Tem Interlandi seconded the motion, which passed unanimously. The following items were approved: Resolution approving an Interlocal Agreement with Palm Beach County to Re-determine, Re- Adopt, and Ratify the Existing Distribution Formula for the Six (6) Cent Local Option Fuel Tax; and authorizing execution of the Agreement. Receive for file Minutes of the Golf Advisory Board meeting held 10/14/24. Receive for file Minutes of the Library Advisory Board meetings held 10/22/24 and 11/26/24. Receive for file Minutes of the Waterways Board meetings held 10/22/24 and 1/29/25. Receive for file Minutes of the Business Advisory Board meeting held 11/19/24. Receive for file Minutes of the Planning, Zoning, and Adjustment Board meeting held 1/7/25. RESOLUTION 2025-04 AMENDMENTS TO EXISTING CONTRACTS FOR TREE TRIMMING MANAGEMENT AND MAINTENANCE SERVICES A motion was made by Vice Mayor Searcy and seconded by President Pro Tem Interlandi to adopt Resolution 2025-04 entitled: A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, APPROVING AMENDMENTS TO EXISTING CONTRACTS WITH PRECISION LANDSCAPE COMPANY OF PALM BEACH COUNTY, INC. AND SALGADO TREE TRIMMING, LLC FOR TREE TRIMMING, MANAGEMENT, AND MAINTENANCE SERVICES AND AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE THE AMENDMENTS; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. John Samadi, 512 Marlin Road, expressed his concerns with the tree trimming services throughout the Village. Deborah Cross, 2560 Pepperwood Circle S., asked for clarification on the amendments to the contracts with Precision Landscape Company and Salgado Tree Trimming, LLC. Marc Holloway, Field Operations Manager clarified that the two (2) contracts were not to exceed $50,000 each and would be increased not to exceed $100,000 each. Mr. Holloway also clarified that residents were responsible for trimming trees within their swales. Thereafter, the motion to adopt Resolution 2025-04 passed unanimously. PUBLIC HEARINGS AND QUASI-JUDICAL MATTERS PUBLIC HEARING AND SECOND READING OF ORDINANCE 2025-02- DISSOLVING OF THE GOLF ADVISORY BOARD AND FORM A NEW COUNTRY CLUB ADVISORY BOARD Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 3 of 10 PUBLIC HEARING AND SECOND READING OF ORDINANCE 2025-02- DISSOLVING OF THE GOLF ADVISORY BOARD AND FORM A NEW COUNTRY CLUB ADVISORY BOARD continued A motion was made by Councilmember Puyol and seconded by President Pro Tem Interlandi to adopt and enact on second reading Ordinance 2025-02 entitled: AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING CHAPTER 9, “COUNTRY CLUB,” OF THE VILLAGE CODE OF ORDINANCES BY REPEALING ARTICLE II, “GOLF ADVISORY BOARD,” IN ITS ENTIRETY AND ADOPTING A NEW ARTICLE II, “COUNTRY CLUB ADVISORY BOARD;” PROVIDING FOR BOARD CREATION, TERMS, COMPOSITION AND DUTIES; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Mr. Rubin stated that the ordinance passed on first reading at the last Council meeting. A modification was made to the composition of the Country Club Advisory Board between first and second reading. Mr. Rubin stated that the composition of the Board was revised to eliminate the requirement that that Board include one person with a social dining membership in favor of two (2) persons representing the community at large. Mayor Bickel opened the Public Hearing. There being no comments from the public, Mayor Bickel closed the Public Hearing. Councilmember Puyol discussed the percentage of revenue generated by golf at the Country Club and expressed disapproval of the composition of the Country Club Advisory Board stating that the majority of members should have a golf membership. President Pro Tem Interlandi stated that all of the Village’s Advisory Boards were advisory in nature only and could not make decisions on policy. Advisory Boards should not direct staff but bring recommendations to Council in order for Council to address issues and make decisions. Based on comments made by Councilmember Puyol regarding the Village’s budget, Mayor Bickel clarified that the Village’s budget was balanced. Thereafter, the motion to adopt and enact Ordinance 2025-02 on second reading passed 4 to 1 with Mayor Bickel, Vice Mayor Searcy, President Pro Tem Interlandi, and Councilmember Garrison voting aye and Councilmember Puyol voting nay. ORDINANCE 2025-03- CODE AMENDMENT- PERMISSIBLE TIME FOR CONSTRUCTION ACTIVITY A motion was made by President Pro Tem Interlandi and seconded by Vice Mayor Searcy to adopt on first reading Ordinance 2025-03 entitled: AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING ARTICLE VI, “NOISE CONTROL,” OF CHAPTER 19, Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 4 of 10 ORDINANCE 2025-03- CODE AMENDMENT- PERMISSIBLE TIME FOR CONSTRUCTION ACTIVITY continued “OFFENSES AND MISCELLANEOUS PROVISIONS,” OF THE VILLAGE CODE OF ORDINANCES BY AMENDING SECTION 19-104, “PERMISSIBLE TIME FOR CONSTRUCTION ACTIVITY,” TO MODIFY THE PERMISSIBLE HOURS FOR CONSTRUCTION ACTIVITY AND THE USE OF POWER-DRIVEN MACHINERY; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Mr. Rubin explained that during the first and second readings of the recent ordinance adopted regarding construction site standards, Council expressed that they wished to modify the permissible times for construction activity which was located within a different section of the Village’s Code of Ordinances. Mr. Rubin stated that the Code currently provides that “it shall be unlawful for any person to do, perform or engage in any construction work, building, excavating, hoisting, grading, pile driving, pneumatic hammering, demolition, dredging, building alteration or repair work between the hours of 8 p.m. of one day and 8 a.m. the next day if any such activity shall cause unreasonable noise as defined in section 19-99 above.” No construction activity shall be permitted on Sundays or legal holidays. Mr. Rubin further explained that the Code currently limits the use of any power-driven machinery, tools, or equipment in any residential zoning district to between the hours of 8 a.m. and 8 p.m. on weekdays and Saturdays and between the hours of 10:00 a.m. and 8:00 p.m. on Sunday. The proposed ordinance amends the permissible times for construction activity (Monday through Saturday) from 8:00 a.m. to 8:00 p.m. to 7:30 a.m. to 6:00 p.m. The permissible times for use of power-driven machinery and equipment has been changed from 8:00 a.m. to 8:00 p.m. on weekdays and Saturdays and 10:00 a.m. to 8:00 p.m. on Sundays to 7:30 a.m. to 6:00 p.m. on weekdays and Saturdays and 10:00 a.m. to 6:00 p.m. on Sundays. Chris Ryder, 118 Dory Road S., expressed his concerns regarding the proposed revisions to the permissible hours for construction activity. Rita Budnyk, 804 Shore Drive, expressed her concerns regarding the proposed revisions to the permissible hours for construction activity. Rita Budnyk on behalf of Tom Gallagher, 704 Teal Way, expressed his concerns regarding the proposed revisions to the permissible hours for construction activity. Lisa Jensen, 606 Shore Road, expressed her concerns regarding the proposed revisions to the permissible hours for construction activity. John Samadi, 512 Marlin Road, expressed his concerns regarding the proposed revisions to the permissible hours for construction activity. Discussion ensued between Mr. Rubin and Councilmembers regarding whether or not construction activity without noise could begin at a certain time. A motion was made by Vice Mayor Searcy and seconded by President Pro Tem Interlandi to amend the permissible hours for construction activity to 8 a.m. to 6 p.m. on weekdays and 9 a.m. to 6 p.m. on Saturdays. Thereafter the motion passed 4 to 1 with Mayor Bickel, Vice Mayor Searcy, President Pro Tem Interlandi and Councilmember Garrison voting aye and Councilmember Puyol voting nay. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 5 of 10 ORDINANCE 2025-03- CODE AMENDMENT- PERMISSIBLE TIME FOR CONSTRUCTION ACTIVITY continued Councilmember Puyol explained that he did not support the motion to amend because he liked the idea of ending the permissible hours for construction activity at 5:30 p.m. rather than 6 p.m. Discussion ensued between President Pro Tem Interlandi and Councilmember Puyol regarding ending the permissible hours for construction activity at 5:30 p.m. rather than 6 p.m. Discussion ensued between Councilmembers, Mr. Huff and Public Works Director Girard regarding ending the permissible hours for construction activity at 5:30 p.m. rather than 6 p.m. A motion was made by Vice Mayor Searcy and seconded by President Pro Tem Interlandi to amend the end time of permissible hours for construction activity for Monday through Saturday at 5:30 p.m. instead of 6 p.m. Thereafter, the motion passed unanimously. Thereafter, the motion to adopt on first reading Ordinance 2025-03 as amended passed unanimously. ORDINANCE 2025-04 - CODE AMENDMENT - PENSION AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE EMPLOYEES A motion was made by Councilmember Puyol and seconded by Councilmember Garrison to adopt on first reading Ordinance 2025-04 entitled: AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA AMENDING DIVISION 4, “PENSION AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE EMPLOYEES,” OF ARTICLE V, “PENSIONS AND RETIREMENTS SYSTEMS,” OF CHAPTER 2, “ADMINISTRATION,” OF THE VILLAGE CODE OF ORDINANCES TO IMPLEMENT CHANGES TO RETIREMENT BENEFITS RESULTING FROM COLLECTIVE BARGAINING WITH THE UNION REPRES ENTING THE VILLAGE’S FIREFIGHTER EMPLOYEES (IAFF); PROVIDING FOR AMENDMENTS AFFECTING THE CALCULATION OF FIREFIGHTER EMPLOYEES’ RETIREMENT BENEFITS WHEN THEY BECOME ELIGIBLE FOR SAME; INCREASING EMPLOYEE CONTRIBUTION RATES; CLARIFYING THE ENTRY WINDOW FOR PARTICIPATION IN THE DEFERRED RETIREMENT OPTION PLAN (DROP); APPLYING THE USE OF INSURANCE PREMIUM TAX REVENUE TO THE VILLAGE ANNUAL RETIREMENT CONTRIBUTION; PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Mr. Rubin discussed and explained the purpose of the proposed ordinance. Mr. Rubin stated that the following amendments would be made to the Pension and Certain Other Benefits for Fire Police Employees of the Village Code of Ordinances:  Changed the normal retirement age to 52 years of age or 25 years of credited service (in lieu of 55 years and 25 years of credited service).  Increased the benefit accrual rate to 3 percent for all years of credited service on or after October 1, 2021.  A new Section 2-161.1 was included to add a firefighter health insurance supplement equal to $15.00 per year of credited service. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 6 of 10 ORDINANCE 2025-04 - CODE AMENDMENT - PENSION AND CERTAIN OTHER BENEFITS FOR FIRE AND POLICE EMPLOYEES continued  Increase the employee contribution from 8.5% to 11% effective the first payroll after March 31m 2025.  Amended to provide that effective April 1, 2025, an employee may elect to participate in the Deferred Retirement Option Plan (DROP) by the late of: (1) 30 days after reaching their latest normal retirement date; or (2) 90 days after April 1, 2025. Thereafter, the motion to adopt on first reading Ordinance 2025-04 passed unanimously. MOTION – Approving the Contract with Old Dixie Highway Realty LLC for the purchase of property located at 9555 Old Dixie Highway and the adjacent eastern parcel at a total cost of $1,065,000; and authorizing the Village Manager to effectuate the purchase in accordance with Village policies and procedures. Mr. Rubin explained and discussed the proposed purchase of the property located at 9555 Old Dixie Highway stating that the Village pursued the purchase of two parcels of property owned by Old Dixie Highway Realty and currently occupied by Precision Landscape Company. The property is located within the Village on both sides of Old Dixie Highway west of the FEC railroad tracks. The property is 1.72 acres in size, has a Future Land Use Designation of Industrial/Business and is currently located within the Village’s I-1 Light Industrial Zoning District. The Village was able to negotiate a purchase price of $1,065,000 which was below appraisal value. The Village further agreed to lease the property back to the property owner for a period of three months, with a possible extension for an additional three months, for the sum of $6,000 per month. This will provide the Village time to develop plans for the construction of a new Public Works Facility. Discussion ensued between Mr. Huff and Councilmembers regarding the proposed purchase of the property. Bryan Craig, 9525 Old Dixie Hwy, stated that he was a resident in the neighboring property and expressed his concerns with traffic and crime surrounding the neighborhood. Russell Beverstein, 415 U.S.1 #210, asked what would be done with the building that the existing Public Works Department resides in. Laura Burrow, 3022 95th Ct., expressed her concerns with the proposed construction of a new Public Works Facility and how it would affect her property. Councilmember Garrison expressed her support and approval for the purchase of the property. Vice Mayor Searcy expressed her support and approval for the purchase of the property. President Pro Tem Interlandi expressed her support and approval for the purchase of the property. Councilmember Puyol expressed concerns regarding the funds that would be utilized to purchase the property. Deputy Manager Samia Janjua explained and discussed where in the budget the funds where coming from for the property purchase and concluding that the monies were coming from the Village’s reserves. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 7 of 10 MOTION – PROPERTY PURCHASE continued Mayor Bickel expressed her support and approval for the purchase of the property. Mayor Bickel stated that she did not know what would happen with the current Public Works Facility but hoped that it would be utilized to house the Community Development Department. A motion was made by Councilmember Garrison and seconded by Vice Mayor Searcy to approve the Contract with Old Dixie Highway Realty LLC for the purchase of property located at 9555 Old Dixie Highway and the adjacent eastern parcel. Therefore the motion passed unanimously. ORDINANCE 2025-05 - CODE AMENDMENT- GENERAL FUND BUDGET AMENDMENT A motion was made by Vice Mayor Searcy and seconded by President Pro Tem Interlandi to adopt on first reading Ordinance 2025-05 entitled: AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, AMENDING THE ADOPTED GENERAL FUND BUDGET TO PROVIDE FUNDING FOR THE PURCHASE OF REAL PROPERTY FOR A NEW PUBLIC WORKS DEPARTMENT FACILITY; TRANSFERRING $1,065,000 FROM THE UNASSIGNED FUND BALANCE TO THE CAPITAL PROJECTS FUND PUBLIC WORKS LAND ACQUISITION CAPITAL ACCOUNT; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. Mr. Rubin discussed and explained that the ordinance was necessary to amend the Fiscal Year 2025 Budget by transferring the funds from the Unassigned Fund Balance to the Capital Projects Fund to fund the purchase of the property located at 9555 Old Dixie Highway. Councilmember Puyol stated that it was fiscally responsible of an organization to have reserves and reiterated that the funds for the property purchase was coming from the Village’s reserves. Thereafter, the motion to adopt on first reading Ordinance 2025-05 passed unanimously. OTHER VILLAGE BUSINESS MATTERS RESOLUTION 2025-06 FISCAL YEAR 2025 BLANKET PURCHASE ORDER FOR SIDEWALK REMOVAL A motion was made by Vice Mayor Searcy and second by Councilmember Garrison to adopt Resolution 2025-06 entitled: A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA APPROVING A BLANKET PURCHASE ORDER WITH FLYING SCOT INC. FOR SIDEWALK REMOVAL AND REPLACEMENT UTILIZING PRICING ESTABLISHED IN AN EXISTING CITY OF PALM BEACH GARDENS CONTRACT IN THE AMOUNT OF $200,000; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 8 of 10 RESOLUTION 2025-06 FISCAL YEAR 2025 BLANKET PURCHASE ORDER FOR SIDEWALK REMOVAL continued Mr. Holloway explained the reasons for the blanket purchase order and the areas of sidewalk that would be replaced in the Village. John Samadi, 512 Marlin Road, expressed his concerns with the quality of construction of the sidewalk repairs done throughout the Village. Councilmember Puyol asked if staff could address Mr. Samadi’s concerns. Mr. Holloway discussed and explained the processes and types of concrete that are utilized when repairing sidewalks throughout the Village. Thereafter, the motion to adopt Resolution 2025-06 passed unanimously. DISCUSSION - Tree Preservation Process Chris Ryder, 118 Dory Road South, expressed his concerns regarding a proposed tree preservation process. Mary Phillips, and Kendra Zellner, on behalf of the Environmental Committee expressed and discussed their support for a tree preservation process. Karen Marcus, 920 Evergreen Drive, expressed her support for a tree preservation process. Deborah Cross, 2560 Pepperwood Circle S, expressed her support for a tree preservation process. Mayor Bickel expressed her support for a tree preservation process. President Pro Tem Interlandi discussed and expressed her support for a tree preservation process and recommending bringing back a draft of an ordinance to be considered by Council. Councilmember Puyol expressed his support for a tree preservation process and stated that an ordinance should be drafted as soon as possible. Mayor Bickel recommended that President Pro Tem Interlandi work with Mr. Rubin to draft an ordinance since it was President Pro Tem Interlandi’s area of expertise as an Environmental Attorney. Discussion ensued between Councilmembers regarding the drafting of an ordinance creating a tree preservation process. Karen Marcus on behalf of the Environmental Committee stated that she would be happy to review past recommendations of the Environmental Committee and the Town of Lake Park’s code related to tree preservation and pass the information on for drafting. MAYOR AND COUNCIL MATTERS/REPORTS Vice Mayor Searcy requested a workshop regarding the Advisory Boards and Committees appointment process and proposed code revisions to Advisory Boards and Committees. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 9 of 10 MAYOR AND COUNCIL MATTERS/REPORTS continued Council came to consensus to have a workshop on the Advisory Boards and Committees appointment process and proposed code revisions. Vice Mayor Searcy proposed implementing additional events and activities for children such as pickleball week or a fishing club. Mayor Bickel stated that she was getting several complaints from residents regarding sprinklers in medians going off, breaking or going off during rush hour, and sprinklers running at the parks on non-watering days. Mayor Bickel asked Public Works if they could address the sprinkler issues. President Pro Tem Interlandi clarified that the Environmental Committee did not direct staff to draft a tree preservation ordinance but they came to Council and Council asked staff to move forward with the draft ordinance. Councilmember Puyol stated that he liked that Council meetings were recorded so that residents can be updated on all that is going on. Councilmember Puyol asked Mr. Huff for an update on the proposal of Prosperity Farms Road being extended to five (5) lanes instead of three (3) lanes. Mr. Huff stated that the Village in conjunction with the City of Palm Beach Gardens sent a letter of opposition. Mr. Huff gave a brief history of the proposal and discussed the traffic concerns. President Pro Tem Interlandi explained and discussed what the County was proposing or considering for Prosperity Farms Road and stated that it was not in the near future but approximately 30 years out. Councilmember Puyol asked for an update on the 200 Yacht Club Drive property. Mr. Huff stated that he believed that the property was in the process of being sold but had no further information to share. Mayor Bickel asked if an expiration could be placed on site plans when a property transfers ownership. Mr. Rubin stated that he did not believe a sale could be restricted if the site plan met the conditions of the Village code. Mr. Rubin stated that those types of restrictions may be imposed on Planned Unit Developments. Councilmember Puyol asked for an update on the proposed Village Place Project at the former Twin Cities Mall site. Mr. Huff stated that he did not have any new information regarding the proposed Village Place Project at the former Twin Cities Mall site. Councilmember Puyol expressed his concerns with the proposed building cost of a new pavilion at the Country Club and stated that the Lessing’s Florida Ventures LLC should move forward with the project at their cost. Draft Minutes of the Village Council Regular Session held February 13, 2025 Page 10 of 10 MAYOR AND COUNCIL MATTERS/REPORTS continued Discussion ensued between Mr. Huff and Councilmembers regarding the proposed pavilion at the Country Club. Mr. Huff stated that Mr. Lessing was considering the cost and was holding off on the building of the pavilion. Vice Mayor Searcy suggested that the Library consider doing an event for the 250th anniversary of Jane Austen’s birthday. Vice Mayor Searcy requested an update on the Lighthouse Drive bridge upgrades provided by 2GHO at the next Council meeting. VILLAGE MANAGER MATTERS/REPORTS Mr. Huff introduced the Village’s new Building Official Valentino Perez. Mr. Perez introduced himself and thanked Council and Mr. Huff. DISCUSSION - March Meeting Calendar Mr. Huff stated that the two (2) Council meetings scheduled for March were on the 13th and the 27th. Mr. Huff asked Council that since the 27th falls within spring break week if Council would like to combine the two (2) meetings to March 20th or have one meeting on March 13th and another meeting on March 20th. Discussion ensued between Councilmembers regarding which dates to have Council meetings in March. Council came to consensus to tentatively have Council meetings on March 13th and March 20th and a meeting will not take place on March 27th. ADJOURNMENT There being no further business to come before the Council, the meeting was adjourned at 8:28 p.m. Jessica Green, MMC, Village Clerk RESOLUTION 2025-___ A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, APPOINTING THE MAYOR, VICE MAYOR AND PRESIDENT PRO TEM FOR THE UPCOMING YEAR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Article III, Section 3 of the Village Charter provides that the Council shall elect from among its members a Mayor, a Vice Mayor, and a President Pro Tem to serve at the pleasure of the Council; and WHEREAS, the election of the Mayor, Vice Mayor and President Pro Tem shall be conducted annually at the first regular Council meeting after the Village election. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, as follows: Section 1. The Village Council hereby elects from among its membership the following persons to serve as Mayor, Vice Mayor, and President Pro Tem of the Village Council of the Village of North Palm Beach: _____________________ Mayor ____________________ Vice Mayor _____________________ President Pro Tem Section 2. The above-named Mayor, Vice Mayor, and President Pro Tem shall hold office until their respective successors shall be elected in accordance with the provisions of the Village Charter. Section 3. This Resolution shall take effect immediately upon adoption. PASSED AND ADOPTED THIS _____ DAY OF ________, 2025. (Village Seal) MAYOR ATTEST: VILLAGE CLERK VILLAGE OF NORTH PALM BEACH HUMAN RESOURCES DEPARTMENT TO: THRU: Honorable Mayor and Members of the Village Council Chuck Huff, Village Manager FROM: Jennifer Cain, Human Resources Director DATE: March 13th, 2025 SUBJECT: RESOLUTION – Amendment to the FY2024-2025 Comprehensive Pay Plan Village Staff is recommending the Village Council’s adoption of a Resolution amending the FY2024-2025 Comprehensive Pay Plan with the following revisions to be effective on 4/1/2025: Reclassify one Full- Time Parks Supervisor position to one Full-Time Recreation Supervisor position; add one Full-Time Communications Specialist position and remove one Full Time Fire Inspector position; reclassify the pay grade of the Full-Time Facilities Manager position; reclassify the Full-Time Building Official position to a Full-Time Building Director position, eliminate the Full-Time Community Development Director position, and update the department to Building & Zoning. Background: The following Comprehensive Pay Plan changes will result in a decrease of one full-time position in the budget and pay plan. 1) Reclassify one Full-Time Parks Supervisor to one Full-Time Recreation Supervisor. The Parks and Recreation Department was restructured at the beginning of the fiscal year. After evaluation of the new structure, with a new Department Director in place, it has been determined that the intent for the remaining vacant Parks Supervisor position will be better suited as a Recreation Supervisor position. Both positions fall into the same pay grade so this will be a title/structure change only with no financial impacts. Excerpt from the Pay Plan: Position Title Grade Annual (Min) Annual (Max) Recreation Supervisor 113 $56,047.53 $89,676.04 Parks Supervisor 113 $56,047.53 $89,676.04 2) Add one Full-Time Communications Specialist, remove one Full-Time Fire Inspector. The Village Manager has identified a need for an additional communications position to enhance community outreach, support departmental programming, and boost social media engagement. We are able to offset the additional position by eliminating a vacant Full-Time Fire Inspector position that has not been utilized and is no longer needed. Human Resources completed a compensation and title study and recommends the title of Communications Specialist at pay grade 117. Position Title Grade Annual (Min) Annual (Max) Communications Specialist 117 $68,126.12 $109,001.79 Fire Inspector 113 $56,047.53 $89,6776.04 Survey Data: Entity Position Title Annual (Min) Annual (Max) Town of Palm Beach Communications Specialist $66,344.56 $106,203.06 City of Palm Beach Gardens Communications Specialist $66,203.16 $105,925.06 City of West Palm Beach Digital Marketing Strategist $61,703.00 $92,567.00 City of Delray Beach Digital/Social Media Coordinator $44,366.40 $70,969.60 City of Boca Raton Communications & Digital Media Coordinator $65,915.00 $110,614.00 Town of Jupiter Communications Project Coordinator $68,883.25 $113,657.37 Following the compensation study methodology, at the 60th percentile, the range would be $66,231.44 - $107,085.25. Slotting into our current pay plan, we would put it at pay grade 117, with a range of $68,126.12 – 109,001.79. 3) Reclassify the pay grade of the Full-Time Facilities Manager position. During the compensation study that was conducted last year, the pay grade for the Full-Time Facilities Manager was slotted two pay grades lower than the Full-Time Fleet Manager position based on the data collected from comparator agencies. After internal review of the positions and responsibilities, we recommend classifying the Full-Time Facilities Manager in the same pay grade as the Full-Time Fleet Manager position, Pay Grade 118, with a range of $71,532.42 - $114,451.88 annually. This pay grade change would create a salary adjustment for current staff to the minimum of the new pay grade. Excerpt from the Pay Plan: Position Title Grade Annual (Min) Annual (Max) Facilities Manager 116 $64,882.02 $103,811.23 Fleet Manager 118 $71,532.42 $114,451.88 4) Reclassify the Full-Time Building Official position to a Full-Time Building Director positon, eliminate the Full-Time Community Development Director position, and update Department to Building & Zoning. The Village Manager has identified the need to restructure the Community Development Department, retitling the department to Building & Zoning, reclassifying the Building Official position to Building Director, and eliminating the Community Development Director position. The department consists of 12 full-time and 5 part-time staff members, in the areas of Building (Building Inspectors and Permit & License Technicians), Code Compliance, and Planning. The Community Development Director currently oversees one Planner and the Code Compliance Officers. Reclassifying the Building Official to Building Director would allow the Building Director to oversee all staff in the Department, while contracting Planning services and providing support to the in-house Planner. With this additional oversight, we would reclassify the position title to Building Director and adjust the pay grade, from Pay Grade 126 ($105,685.97 - $169,097.55 annually) to Pay Grade 128 ($116,518.78 – 186,430.05 annually). We would also provide a 10% increase in pay, per the Village’s promotion policy, for the additional duties. The current pay range for the Building Official position is provided below: Position Title Grade Annual (Min) Annual (Max) Building Official 126 $105,685.97 $169,097.55 The recommended pay range for the Building Director is provided below: Position Title Grade Annual (Min) Annual (Max) Building Director 128 $116,518.78 $186,430.05 Survey Data: Entity Position Title Annual (Min) Annual (Max) Village of Tequesta Building Director $103,508.00 $155,263.00 City of Stuart Development Director $103,313.60 $165,235.20 Town of Palm Beach Director of Planning, Zoning, Building $133,102.72 $213,068.21 City of Riviera Beach Development Services Director $107,326.00 $160,987.00 City of Palm Beach Gardens Building Official $102,702.84 $164,324.54 City of West Palm Beach Development Services Director $136,315.00 $204,472.00 City of Greenacres Building Official $107,961.00 $181,419.00 City of Delray Beach Development Services Director $112,112.00 $179,337.60 City of Boca Raton Development Services Director $131,705.00 $220,916.00 Town of Jupiter Building Official $119,541.17 $197,242.25 Following the compensation study methodology, at the 60th percentile, the range would be $116,569.50 - $190,912.95. Slotting into our current pay plan, we would put it at pay grade 128, with a range of $116,518.78 – $186,430.05 annually. Additionally, Village Staff will be bringing forth an Ordinance amending to the Village Code to reflect the new Building and Zoning Department, with the Building Director serving as the department head. The Comprehensive Pay Plan is included within the overall Village Budget for Fiscal Year 2025, as approved by the Village Council through the adoption of Ordinance No. 2023-15. Section 5 of Ordinance No. 2023-15 specifically authorizes the Village Council to revise the Comprehensive Pay Plan by Resolution during the Fiscal Year without need to amend the Ordinance. The attached Resolution has been prepared and/or reviewed by the Village Attorney for legal sufficiency. Recommendation: Village Staff Requests Council consideration and approval of the attached Resolution amending the Fiscal Year 2025 Comprehensive Pay Plan by reclassifying one Full-Time Parks Supervisor position to one Full-Time Recreation Supervisor position; adding one Full-Time Communications Specialist position and removing one Full Time Fire Inspector position; reclassifying the pay grade of the Full-Time Facilities Manager position; reclassifying the Full-Time Building Official position to a Full-Time Building Director positon, eliminating the Full-Time Community Development Director position, and updating the department to Building & Zoning effective April 1st, 2025 in accordance with Village policies and procedures. RESOLUTION 2025- A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA AMENDING THE COMPREHENSIVE PAY PLAN ADOPTED AS PART OF THE FISCAL YEAR 2025 BUDGET TO RECLASSIFY THE FULL-TIME PARKS SUPERVISOR POSITION TO THE FULL-TIME RECREATION SUPERVISOR POSITION, ADD ONE FULL-TIME COMMUNICATIONS SPECIALIST POSITION AND REMOVE ONE FULL-TIME FIRE INSPECTOR POSITION; RECLASSIFY THE PAY GRADE OF THE FULL-TIME FACILITIES MANAGER POSITION, RECLASSIFY THE FULL-TIME BUILDING OFFICIAL POSITION TO A FULL-TIME BUILDING DIRECTOR POSITION, AND ELIMINATE THE COMMUNITY DEVELOPMENT DIRECTOR POSITION; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, through the adoption of Ordinance No. 2024-15 (“Budget Ordinance”) on September 26, 2024, the Village Council adopted a Comprehensive Pay Plan as part of the annual budget for Fiscal Year 2025; and WHEREAS, Section 5 of the Budget Ordinance authorizes the Village Council to revise the Comprehensive Pay Plan by Resolution during the course of the Fiscal Year; and WHEREAS, at the recommendation of Village Staff, the Village Council wishes to reclassify the Parks Supervisor position, add a Communications Specialist position, remove a Fire Inspector position, reclassify the pay grade of the Facilities Manager position; reclassify the Building Official position, eliminate the Community Development Director position, and update the Community Development Department to the Building and Zoning Department; and WHEREAS, the Village Council determines that the adoption of this Resolution is in the best interests of the Village and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA as follows: Section 1. The foregoing recitals are ratified as true and incorporated herein. Section 2. The Village Council hereby amends the Comprehensive Pay Plan for Fiscal Year 2025 as follows: A. Reclassify the full-time Parks Supervisor position to a full-time Recreation Supervisor position at the existing Pay Grade 113 ($56,047.53 to $89,676.04 annually); B. Add one full-time Communications Specialist position at Pay Grade 117 ($68,126.12 to $109,001.79 annually); C. Eliminate one-full time Fire Inspector position at Pay Grade 113 ($56,047.53 to $89,676.04 annually); D. Reclassify the pay grade for the full-time Facilities Manager position from Pay Grade 116 ($64,882.02 to $103,811.23 annually) to Pay Grade 118 ($71,532.42 to $114,451.88 annually); and E. Reclassify the full-time Building Official position at Pay Grade 126 ($105,685.97 to $169,097.55 annually) to a full-time Building Director Position at Pay Grade 128 ($116,518.78 to $186,430.05 annually). In addition to the foregoing, all references to the Community Development Department shal l be changed to the Building and Zoning Department. Section 3. All other provisions of the Comprehensive Pay Plan, to the extent not specifically modified herein, shall remain in full force and effect. Section 4. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED THIS ____ DAY OF ____________, 2025. (Village Seal) MAYOR ATTEST: VILLAGE CLERK VILLAGE OF NORTH PALM BEACH GOLF ADVISORY BOARD Minutes of January 13, 2025 I. CALL TO ORDER A. The meeting was called to order by Chairman Rich Pizzolato at 6:00 p.m. II. ROLL CALL A. Board: Present Absent Rich Pizzolato – Chairman X David Norris – Vice Chairman X Curtis Witters – Secretary X Landon Wells – Member X Sandra Felis – Member X Karen O’Connell – Member X Steve Mathison – Member X B. Staff Members: Allan Bowman, Director of Golf X Beth Davis, General Manager X Lenore Dingle, Membership Coordinator C. Council Members: Orlando Puyol D. Public Present: A question was put forth from a member of the public regarding group play. Allan Bowman responded that the Club is not doing away with group play but that no NPB Golf Advisory Board Minutes of January 13, 2025 2 tee times would be set aside for group play during February. The goal is to provide equal access to tee times for all members during that very busy month. III. APPROVAL OF MEETING MINUTES Minutes of the October 14, 2024 GAB Meeting were approved 6-0. IV. ADMINISTRATIVE REPORTS Golf Report. Allan Bowman, Director of Golf, delivered his report. Golf revenue is up; we are off to a good year. We are ahead of budget projections. Golf rounds are way up. November and December set records. We are using 9-minute tee time intervals in the morning, 10-minute intervals at noon, and 11-minute intervals in the afternoon. We now have 185 members and no new members will be added until April. Our member play most recently was 1,676 per month. With 185 members, this equates to 9.06 rounds per month, per member. Rich Pizzolato asked Allan if the tee time interval should be longer in the morning to lessen congestion and speed play. Current plan is to add 10 members in April; 8 will be Village residents and 2 will be nonresidents. Maintenance. The wash plant is going out for bid. The cart path on Hole 6 is to be completed, connecting the existing sections, so that the path is continuous on that hole. This will assist with the cart traffic we are experiencing for the boat parade. We will have more lights on the course for the boat parade in future years. We had a cart flip on Hole 3 at the boat parade in December. NPB Golf Advisory Board Minutes of January 13, 2025 3 Our greens are currently too wet; too much organic material has accumulated. To alleviate the wetness, we will be taking cores from the greens using ¾” and ¼” holes. We will also use the wet jet procedure once or twice. The fairway on Hole 2 is contaminated with common Bermuda grass. Beginning in April, we plan to re-grass the first one-half of the fairway to remove this grass. We will reconfigure the bunker on the right side of the fairway, reducing its size by one- half. We will also widen the fairway along the right-hand side of the hole, to give us more playing area. While this work is done, we will play the hole as a par three, placing a temporary tee just beyond the current right-hand bunker. We continue to work reinforcing bunker faces. We will add more yellow stacks and rakes to encourage proper care of the bunkers. The golf course has experienced vandalism by electric bikes being operated on the property at night. A private cart was driven across the 1st green one night. Chuck Huff is meeting with the Village attorney to discuss a new ordinance closing the golf course property at night. Beth Davis addressed the Board. The 2024 year-end financial report is not yet ready. The Village Council has considered at first reading an ordinance to create a Country Club Advisory Board. It is expected to pass on its second reading on February 13th. This is the final meeting of the Golf Advisory Board. Applications for the new Country Club Advisory Board will go out soon. The Board will be composed of seven members; 2 gold members, one WGA member, one pool member, one tennis member, and two community members at large. NPB Golf Advisory Board Minutes of January 13, 2025 4 The new restaurant operation is going well. We have five hundred dining members. IV. DISCUSSION TOPICS V. ADJOURNMENT The meeting was adjourned at 7:05 p.m. Minutes by Curtis L. Witters, Secretary. MINUTES Village of North Palm Beach Waterways Advisory Board Meeting Village Council Hall Chambers January 28, 2025 I. Attendees: ☒ Mark Michels, MD, Chair ☒ Diane Wimbrow, Vice Chair ☒ Marty Domenech, Secretary ☒ George Alger, Board Member ☒ Paul Bartlett, Board Member � Bruce Crawford, Board Member ☒ Jerry Sullivan, Board Member ☒ Caryn Gardner-Young, Village Liaison ☒ Lisa Interlandi, Council Member ☒Ashley Shipman, Recreation Director II Minutes from previous meeting. Approved without changes. III Public Comments a. Mary Phillips made comment about collaboration with the Environmental committee on the Oyster project. Also, discussed need for volunteers for many activities that are happening at the village in the coming months. IV. New Business a. New Village Liaison Caryn Gardner-Young was introduced. Community development director. b. New Marine Code Enforcement officer Sam Dorval introduced. No boat dedicated to code enforcement yet, using NPB police vessel for now. c. Discussed becoming more familiar with code enforcement provisions. Chapter 5 of Village code would be good to review. Caryn Gardner-Young to send copies. V. Old Business a. Dredging plan. Motion was put to a vote: Recommend the Village Council to map the waterways to ensure dredging, if required is identified, planned, and conducted proactively. The Waterways board can provide further specific guidance and suggestions if requested. Motion passed 6-0. MINUTES Village of North Palm Beach Waterways Advisory Board Meeting Village Council Hall Chambers January 28, 2025 b. Derelict Vessels – Update by Diane Wimbrow. Less volume of vessels has been observed in the Old Port Cove/Little Lake Worth area. c. Clean Vessel Act / Pump out services – Update by Dr. Michels. After discussions with industry, water advocacy groups, and consultants on this issue, there appears to be little appetite to setup a state sponsored pump out service. A private pump out program may become available in the coming months. d. Oyster project- Update by George Alger. Coastal conservation will host activity to drill and string oysters on February 15 at 10AM, followed by an Oyster hanging ceremony on April 12th. Volunteers needed for both events as there are many activities across the village in the coming months. FishFlorida provided funding for fishing supplies for kids under 15 that take a 30 minute fishing lesson. Discussed need for signage or advertising the event in Village paper to drive awareness and volunteers to both events. e. Funding status for NPB Marina, south docks - Update by Ashley Shipman, Recreation Director. South dock restorations are not in the 2025 budget plan. Only the design plan is included for this year. Next in line for the marina renovation is the boat ramp restoration scheduled to begin 2/10 and take approximately 90 days. Board members expressed concern and need for more timely decisions on the south dock restoration, since the issue has been known for several years with no real progress on a plan. With current funding constraints and applications for other ways to fund via grants, estimated timeline and cost are possibly 18-24 month and approx.. $2MM. The current condition of the docks was also discussed, as containing possible hazards and/or conditions that may not be safe. A Motion was put to vote: Recommend the Village have an expert evaluate the conditions of the south dock, and provide for any temporary repair or fix needed to ensure safe operation of the docks as a priority. Motion passed 6-0. VI Staff comments. None. Meeting adjourned 1 THE VILLAGE OF NORTH PALM BEACH Village Manager’s Office “THE BEST PLACE TO LIVE UNDER THE SUN” Environmental Committee Meeting MINUTES Anchorage Park Monday, Feb 10, 2025 6:00pm 1. Call to Order: Karen Marcus called the meeting to order at 6:01pm. 2. Roll Call: Present: Karen Marcus, Kendra Zellner, Mary Phillips, Juliette Desfeux, Ellen Allen, Brian Bartels Absent: Shawn Woods Also Present: Marc Holloway, Field Operations Manager 3. The Minutes of the Jan , 2024, regular meeting was approved. 4. Public Comments – a. 5. Community Garden Update- no update. Movie in the garden is their next event. 6. Volunteer board request- Shawn has no update as she was not present. 7. Oyster Project- Mary and Kendra said they are prepared for the event. They will schedule a meeting with Ashley and Julie to discuss details about the event. 8. Lakeside Park erosion proposal- Marc has no update. 9. Wind and Heat Vulnerability Assessment- Marc said the study is almost complete. Public Works is looking into check valves at the pipe located at the golf course to prepare for sea level rise. Kendra requested that the company performing the study presents their findings to our committee. 2 10. Parks Master Planning update- Ashley has no update. Removing from the next agenda. 11. Tree removal permit- This is on the agenda for Thursday for the council to discuss. This was removed from first reading and will now be up for discussion. Some committee members will attend the meeting to explain the need for this permit. 12. Arbor Day Application- Ashley submitted the application and the Village received the certificate. Removing from the next agenda. 13. Earth Day- Kendra and Mary are coordinating the event. Earth Day/Arbor Day is scheduled for April 26th. Karen will coordinate with firefighters and source food. Kendra will reach out to Ashley and Julie to follow up on the details of the event. 14. Residential landscape code- no update. Marc will email Caryn to see if this is being prioritized for this year. 15. Speaker Series- Kendra advised that there is little interest in the event on Facebook. She will create a flyer and go door-to-door. Ellen is going to write the email and send a photo to Ed for advertisement for the next speaker series on April 19th. 16. Previous newsletter about Oyster water cleaning information. The next newsletter about Arbor Day and Earth Day. 17. Member Comment- a. Ellen was inquiring about a curb being removed at Osborne Park. Karen advised that this was a safety repair. The Committee is requesting that Stephen Poh come to the next meeting so we can discuss any maintenance being done to parks. 18. Staff Comment- a. 19. Next meeting- The next meeting will be on March 3, 2025 at 6:00 pm at Anchorage Park. 20. Adjournment- the meeting adjourned at 6:56pm 3 VILLAGE OF NORTH PALM BEACH NORTH PALM BEACH COUNTRY CLUB TO: Honorable Mayor and Council FROM: Beth Davis, CCM, General Manager Country Club DATE: March 13, 2025 SUBJECT: ORDINANCE 1ST READING- Amend Chapter 9, “Country Club,” of the Village Code of Ordinances by amending Article 1, “In General”, sections 9-1 and 9-2. Due to an overwhelming and costly amount of vandalism to the North Palm Beach Country Club golf course, staff requests that the Village Council approve an amendment to Chapter 9, “Country Club,” of the Village Code of Ordinances by amending Sections 9-1 and 9-2 of Article I, “In General”, to update and clarify the general rules and regulations, including operating hours and prohibitions, applicable to the North Palm Beach Country Club facilities and provide enforcement thereof. The staff has reported several evening incidents where the course has been damaged by kids riding motorized vehicles, electric bikes, and bicycles across the greens and through the bunkers, while also running and sliding down the bunker faces. To date, the Club has spent well over $20,000 to repair damages, which includes materials and labor. After discussion with the Village Manager and Village Police Department, Staff determined that the adoption of an Ordinance amending Sections 9-1 and 9- 2 of the Village Code to update and clarify the general rules and regulations, including operating hours, and prohibitions, applicable to the North Palm Beach Country Club facilities and provide for enforcement is in the best interests of the Village and its residents. The attached Ordinance has been prepared and/or reviewed by the Village Attorney for legal sufficiency. There is no fiscal impact. Recommendation: Village Staff requests Council consideration and approval on the first reading of the attached Ordinance amending Chapter 9, “Country Club,” of the Village Code of Ordinances by amending Article 1, “In General”, sections 9-1 and 9-2, to update and clarify the general rules and regulations, including operating hours, and prohibitions applicable to the North Palm Beach Country Club in accordance with Village policies and procedures. Page 1 of 4 ORDINANCE NO. _____ 1 2 AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3 NORTH PALM BEACH, FLORIDA, AMENDING CHAPTER 9, “COUNTRY 4 CLUB,” OF THE VILLAGE CODE OF ORDINANCES BY AMENDING 5 SECTIONS 9-1 AND 9-2 OF ARTICLE I, “IN GENERAL,” TO UPDATE THE 6 GENERAL RULES AND REGULATIONS APPLICABLE TO THE NORTH 7 PALM BEACH COUNTRY CLUB AND THE ENFORCEMENT THEREOF; 8 PROVIDING FOR CODIFICATION; PROVIDING FOR SEVERABILITY; 9 PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIV E 10 DATE. 11 12 WHEREAS, at the request of Village Staff, the Village Council wishes to update and 13 clarify the general rules and regulations, including operating hours and prohibitions, applicable to 14 the North Palm Beach Country Club facilities and provide for enforcement thereof; and 15 16 WHEREAS, the Village Council has determined that the adoption of this Ordinance is in 17 the best interests of the Village and its residents. 18 19 NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 20 OF NORTH PALM BEACH, FLORIDA as follows: 21 22 Section 1. The foregoing “whereas” clauses are hereby ratified as true and are incorporated 23 herein. 24 25 Section 2. The Village Council hereby amends Chapter 9, “Country Club,” of the Village 26 Code of Ordinances by amending Article I, “In General,” to read as follows (additional language 27 underlined and deleted language stricken through): 28 29 ARTICLE I. IN GENERAL 30 31 Sec. 9-1. Premises – General regulations. 32 33 No person, (other than village employees or persons authorized by the 34 village), on the premises of the North Palm Beach Country Club, including the 35 North Palm Beach Country Club Ggolf Ccourse, cart paths, tennis club courts and 36 tennis facilities, driving range and driving range facilities, swimming pool area, and 37 swimming pool facilities, dining room, bar, winter club clubhouse facilities and all 38 other premises included within the property acquired owned by the village as part 39 of the North Palm Beach Country Club, both under the original purchase and under 40 the option by which it acquired the tennis club area, shall: 41 42 (1) Disfiguration and/or removal of building and other property. 43 44 a. Willfully mark Mark, deface, disfigure, injure, tamper with, 45 or displace or remove any building, paving or paving 46 Page 2 of 4 materials, lawn, sod, water line, charging stations, or other 1 public utilities, and parts of or appurtenances thereof, signs, 2 notices, or placards, whether temporary or permanent, or any 3 other structures, equipment, facilities or country club 4 property or appurtenances thereto, either real or personal. 5 6 b. Dig or remove or disfigure any of the tee areas, fairways, 7 greens, bunkers, or rough, driving ranges, cart paths, 8 buildings, or equipment on the North Palm Beach Country 9 Club Ggolf Ccourse. 10 11 c. Dig or remove or disfigure any of common areas, walkways, 12 lawns, tennis courts, lights, fences, buildings, or equipment 13 at the North Palm Beach Country Club tennis center. 14 15 d. Dig or remove or disfigure any of the common areas, 16 walkways, pool deck, diving boards, ladders, splash pad 17 flooring, splash pad water features, buildings, or equipment 18 at the North Palm Beach Country Club swimming pool. 19 20 e. Dig or remove or disfigure any of the common areas, 21 walkways, lawns, lights, fences, parking areas, buildings, or 22 equipment at the North Palm Beach Country Club 23 clubhouse. 24 25 c f. Damage, cut, carve, transplant, or remove any tree or plant 26 or injure the bark or pick the flowers or seeds of any tree or 27 plant. Nor shall any person attach any rope, wire or any 28 contrivance to any tree or plant. A person shall not dig in or 29 otherwise disturb grassy areas or in any other way injure or 30 impair the natural beauty or usefulness of any area. 31 32 (2) Operation of motorized vehicles and other equipment. 33 34 a. Operate any form of motorized or electric vehicles, 35 including, but not limited to, motorized scooters, electric 36 bicycles, motorcycles, dirt bikes, all-terrain vehicles 37 (ATV’s), or personal golf carts at the North Palm Beach 38 Country Club, other than within designated parking areas or 39 vehicular travel lanes. 40 41 b. Operate any form of bicycle, skateboard, roller skates or 42 roller blades, stroller, carriage, or wagon on the North Palm 43 Beach Country Club golf course. 44 45 46 47 Page 3 of 4 (2 3) Hours. Be physically present on: 1 2 a. The golf course at the Village of North Palm Beach Country 3 Club, including all tees, fairways, greens, bunkers, cart 4 paths, ponds, and rough areas during the period from one (1) 5 hour after after sunset to one (1) hour or before sunrise each 6 day. 7 8 b. Other areas at the North Palm Beach Country Club, 9 including the clubhouse, tennis facilities, swimming pool 10 area and winter club except during daylight hours and during 11 the hours of one (1) hour after sunset and one (1) hour before 12 sunrise as the premises are lighted and use thereof has been 13 expressly approved by the village for the country club 14 restaurant, bar facilities, swimming pool area, tennis courts, 15 golf course, driving range and the winter club. The opening 16 and closing hours for such latter areas shall be posted at the 17 main entrance to the facilities for public information. One 18 (1) hour after sunset and one (1) hour before sunrise, all 19 portions of the North Palm Beach Country Club which are 20 not lighted and permitted for use as described above shall be 21 closed to the public, and no person or persons shall walk or 22 be upon any portion of the country club premises which is 23 closed to the public during those hours. Any other areas of 24 the North Palm Beach Country Club, including the 25 clubhouse facility, tennis center facilities, swimming pool 26 facilities, and the driving range facilities outside of posted 27 operating hours. 28 29 Sec. 9-2. Same – Signs; enforcement; penalties. 30 31 (a) The village manager or the manager’s designee shall may place appropriate 32 signs advising the public of the of the operating hours of various facilities 33 and the prohibitions set forth above at appropriate locations throughout 34 closing of country club facilities at each entrance to the North Palm Beach 35 Country Club and at each of the North Palm Beach Country Club facilities 36 main entrances. 37 38 (b) All employees at the North Palm Beach Country Club and the village's 39 police department shall, in connection with their duties imposed by law, 40 diligently enforce the provisions of section 9-1 and 9-2. The All persons 41 employed at the North Palm Beach Country Club village manager or the 42 manager’s designee shall have the authority to eject reject from the country 43 club premises any person acting in violation of sections 9-1 and 9-2. The 44 North Palm Beach Police Department and any North Palm Beach law 45 enforcement officer shall have the authority to enforce sections 9-1 and 9-46 Page 4 of 4 2 and to arrest any person trespassing upon the country club property or 1 otherwise in violation of the hours of use and other provisions prohibitions 2 of sections 9-1 and 9-2. 3 4 (c) Penalties. Violation of any provision of this Code section article shall be 5 punished as provided in section 1-8 of this Code or as otherwise authorized 6 by law. 7 8 Section 3. The provisions of this Ordinance shall become and be made a part of the Code of 9 the Village of North Palm Beach, Florida. 10 11 Section 4. If any section, paragraph, sentence, clause, phrase, or word of this Ordinance is for 12 any reason held by a court of competent jurisdiction to be unconstitutional, inoperative, or void, 13 such holding shall not affect the remainder of this Ordinance. 14 15 Section 5. All ordinances or parts of ordinances and resolutions or parts of resolutions in 16 conflict herewith are hereby repealed to the extent of such conflict. 17 18 Section 6. This Ordinance shall take effect immediately upon adoption. 19 20 PLACED ON FIRST READING THIS _____ DAY OF ________________, 2025. 21 22 PLACED ON SECOND, FINAL READING AND PASSED THIS ______ DAY OF 23 ___________, 2025. 24 25 26 (Village Seal) 27 MAYOR 28 29 ATTEST: 30 31 32 VILLAGE CLERK 33 34 APPROVED AS TO FORM AND 35 LEGAL SUFFICIENCY: 36 37 38 VILLAGE ATTORNEY 39 ORDINANCE N0. 5- 80 AN ORDINANCE OF THE VILiAGE OF NORTH PALM BEACH, FLORIDA, REGULATING CONDUCT AT THE NORTH PALM BEACH COUNTRY CLUB, PROVIDING FOR ENFORCEMENT',REGUTATIIVG HOURS OF USE OF VARIOUS COUNTRY CLUB FACILITIES, AND PRESCRIBING PENALTIES FOR THE VIOLATION OF TTS PROVISIONS.BE TI' ORDAINID BY THE VTTTAf:F' COUNCIL OF NORTH PALM BEACH, FLORIDA:Section 1. That the Village of North Palm Beach Code is hereby amended by adding anew section to be numbered Section 9-21 which said section shall read as follows:Section 9-21. Count Club Premises. No person (other than Vi ag'T~ oyees or persons out r zed by the Village) on the premises of the North Palm Beach Country Club, including the North Palm Beach Country Club Golf Course, Tennis Club and tennis facilities, driving range, swimming pool area, dining roan, bar, Winter Club facilities and all other premises,included within the property acquired by the Village of North Palm Beach as part of the North Palm Beach Country Club, both under. the original purchase and under the option by which it acquired the tennis club area, shall:1, Buildir~ and Other Property.a) Disfi ation and Removal. Willfully mark, deface,disfigure, ni~jure, tamper t or rsplace or remove any building,paving or paving materials, lawn, sod, water line or other public utilities, parts of appurtenances thereof, signs, notices or placards,whether temporary or permanent, or any other structures, equipment,facilities or Country Club property or appurtenances thereto,either real or personal.b) Dig or remove or disfig~e any of the tee areas,fairways, greens or rough on the North Palm Beach Country Club Golf Course.c) Damage, cut, carve, transplant or remove any tree or plant or injure the bark or pick the flowers or seeds of any tree or plant. Nor shall any person attach any rope,wire or any contrivance to any tree or plant. A person shall not dig in or otherwise disturb grassy areas or ixi any other way injure or impair the natural beauty or usefulness of any area.2. Hours.a) Be physically present on:1) The golf course at the Village of North Palm Beach Country Club, including all tees, fairways, greens and rough areas during the period from one (1) hour after sunset to one (1)hour before sunrise each day.2) Other areas at the North Palm Beach Country Club, including the clubhouse, tennis facilities, swimming pool area and Winter Club except during daylight hours, and during the hours of one (1) hour after sunset and one (1) hour before sunrise as the premises are light and use thereof has been expressly approved by the Village for the Country facilities, swimming pool area, tennis courts, golf course, driving range and the Winter Club. The opening and closing hours for such latter areas shall be posted at the main entrance to the facilities for. public information. One (1) hour after sunset and one (1) hour before sunrise, all portions of the North Palm Beach Country Club which are not lighted and permitted for use as described above, shall be closed to the public, and no person or persons shall walk or be upon any portion of the Country Club premises which is closed to the public during those hours. Section 2. That the Village of North Palm Beach Code is hereby amended by adding a new section to be numbered Section 9-22 which said section shall read as follows;Village Manager shall place appropriate signs advising the public of the closing of Country Club facilities at each entrance to the North Palm Beach Country Club and at each of the North Palm Beach Country Club facilities main entrances.1. Enforcement. All employees at the North Palm Beach Country e Public Safety Department and Public Safety Office at the Village of North Palm Beach shall, in cormection with their duties imposed by law, diligently enforce the provisions of this Ordinance.The North Palm Beach Country Club Manager and all persons employed at the North Palm Beach Country Club shall have the authority to reject from the Country Club premises any person acting in violation of this Ordinance. The North Palm Beach Public Safety Department and any North Palm Beach Public Safety Officer shall have the authority to enforce this Ordinance and to arrest any persons trespassing upon the Country Club property in violation of the hours of use and other provisions of this Ordinance.2. Penalties. Violation of any provision of this Code Section s~ITpunished by a fine not exceeding $500.00 or imprisonment for a term not exceeding six months or by both such fine and imprisonment."Section 3. This Ordinance shall take effect immediately upon passage.PLACID ON FIRST READING THIS 28TH DAY OF FEBRUARY, 1480.PLACID ON SECOND, FINAi. READING AND PASSID THIS 13TH AAX OF MARCH, 1980,s/ W. H: BR04dV ATTEST:s/ DOIARES R. 41ALI~ t II TA(;F: PART II - CODE OF ORDINANCES Chapter 9 - COUNTRY CLUB ARTICLE I. IN GENERAL North Palm Beach, Florida, Code of Ordinances Created: 2025-01-09 14:54:00 [EST] (Supp. No. 89) Page 1 of 2 ARTICLE I. IN GENERAL Sec. 9-1. Premises—General regulations. No person, other than village employees or persons authorized by the village, on the premises of the North Palm Beach Country Club, including the North Palm Beach Country Club Golf Course, tennis club and tennis facilities, driving range, swimming pool area, dining room, bar, winter club facilities and all other premises included within the property acquired by the village as part of the North Palm Beach Country Club, both under the original purchase and under the option by which it acquired the tennis club area, shall: (1) Disfiguration and/or removal of building and other property. a. Willfully mark, deface, disfigure, injure, tamper with or displace or remove any building, paving or paving materials, lawn, sod, water line or other public utilities, parts of appurtenances thereof, signs, notices or placards, whether temporary or permanent, or any other structures, equipment, facilities or country club property or appurtenances thereto, either real or personal. b. Dig or remove or disfigure any of the tee areas, fairways, greens or rough on the North Palm Beach Country Club Golf Course. c. Damage, cut, carve, transplant or remove any tree or plant or injure the bark or pick the flowers or seeds of any tree or plant. Nor shall any person attach any rope, wire or any contrivance to any tree or plant. A person shall not dig in or otherwise disturb grassy areas or in any other way injure or impair the natural beauty or usefulness of any area. (2) Hours. Be physically present on: a. The golf course at the Village of North Palm Beach Country Club, including all tees, fairways, greens and rough areas during the period from one (1) hour after sunset to one (1) hour before sunrise each day. b. Other areas at the North Palm Beach Country Club, including the clubhouse, tennis facilities, swimming pool area and winter club except during daylight hours and during the hours of one (1) hour after sunset and one (1) hour before sunrise as the premises are lighted and use thereof has been expressly approved by the village for the country club restaurant, bar facilities, swimming pool area, tennis courts, golf course, driving range and the winter club. The opening and closing hours for such latter areas shall be posted at the main entrance to the facilities for public information. One (1) hour after sunset and one (1) hour before sunrise, all portions of the North Palm Beach Country Club which are not lighted and permitted for use as described above shall be closed to the public, and no person or persons shall walk or be upon any portion of the country club premises which is closed to the public during those hours. (Ord. No. 5-80, § 1, 3-13-80) Editor's note(s)—Ordinance No. 5-80, § 1, adopted Mar. 13, 1980, amended the Code with the addition of a new § 9-21. However, in order to maintain Code format, the editor has redesignated the provisions as § 9 -1. Created: 2025-01-09 14:54:00 [EST] (Supp. No. 89) Page 2 of 2 Sec. 9-2. Same—Signs; enforcement; penalties. (a) The village manager shall place appropriate signs advising the public of the closing of country club facilities at each entrance to the North Palm Beach Country Club and at each of the North P alm Beach Country Club facilities main entrances. (b) All employees at the North Palm Beach Country Club and the village's police department shall, in connection with their duties imposed by law, diligently enforce the provisions of section 9 -1 and 9-2. The All persons employed at the North Palm Beach Country Club shall have the authority to reject from the country club premises any person acting in violation of sections 9 -1 and 9-2. The North Palm Beach Police Department and any North Palm Beach law enforcement officer shall have the authority to enforce sections 9-1 and 9-2 and to arrest any person trespassing upon the country club property in violation of the hours of use and other provisions of sections 9-1 and 9-2. (c) Penalties. Violation of any provision of this Code section shall be punished as provided in section 1-8 of this Code. (Ord. No. 5-80, § 2, 3-13-80; Ord. No. 2011-21, § 9, 11-10-11) Editor's note(s)—Ordinance No. 5-80, § 2, adopted Mar. 13, 1980, amended the Code with the addition of a n ew § 9-22. At the editor's discretion, in order to maintain Code format, the provisions have been redesignated as § 9-2. Secs. 9-3—9-15. Reserved. VILLAGE OF NORTH PALM BEACH FINANCE DEPARTMENT TO: Honorable Mayor and Council THRU: Charles Huff, Village Manager FROM: Samia Janjua, Deputy Village Manager Erica Ramirez, Director of Finance DATE: March 13, 2025 SUBJECT: RESOLUTION – Acceptance of Fiscal Year 2024 Audit Report The September 30, 2024 year-end annual comprehensive financial report will be distributed by our auditors at this coming week’s Council meeting. This report is published to provide the Village Council, Village staff, our citizens, our lenders, and other interested parties with detailed information concerning the financial condition and activities of the Village government. This annual financial report reflects continuing improvement in our Village’s financial operations and overall financial condition. The attached Resolution has been prepared and/or reviewed by the Village Attorney for legal sufficiency. Recommendation: Village Staff requests Council consideration and approval of the attached Resolution authorizing the Mayor and Village Clerk to accept the annual comprehensive financial report prepared by the Auditor for the fiscal year ending September 30, 2024 and to file the report with the state as required by law . RESOLUTION 2025- A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, ACCEPTING THE ANNUAL COMPREHENSIVE FINANCIAL REPORT PREPARED BY THE VILLAGE AUDITOR FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2024 AND AUTHORIZING ITS FILING WITH THE STATE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, as required by Chapter 218, Florida Statutes, the Village Council selected the firm of Nowlen, Holt & Miner, P.A. (“Auditor”) to prepare an Annual Comprehensive Financial Report, including an audit report, for the fiscal year ending September 30, 2024; and WHEREAS, the Village Council wishes to accept the annual financial report and authorize its filing with the State as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA as follows: Section 1. The foregoing recitals are ratified as true and correct and are incorporated herein. Section 2. The Village Council hereby authorizes the Mayor and Village Clerk to accept the Annual Comprehensive Financial Report prepared by the Auditor for the fiscal year ending September 30, 2024 and to file said report with the state as required by law. Section 3. This Resolution shall be effective immediately upon adoption. PASSED AND ADOPTED THIS ______ DAY OF , 2025. (Village Seal) MAYOR ATTEST: VILLAGE CLERK Village of North Palm Beach, FL Annual Comprehensive Financial Report Fiscal year ended September 30, 2024 3/8/25 Final Draft The Village of North Palm Beach, Florida ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year Ended September 30, 2024 Prepared by: Finance Department Erica Ramirez Director of Finance 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA FINANCIAL STATEMENTS SEPTEMBER 30, 2024 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal ..................................................................................................................................... i Principal Village Officials ........................................................................................................................ vii Organizational Structure ........................................................................................................................... viii GFOA Certificate of Achievement for Excellence in Financial Reporting ................................................. ix FINANCIAL SECTION Independent Auditor’s Report ...................................................................................................................... 1 Management's Discussion and Analysis ....................................................................................................... 5 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements: Statement of Net Position ..................................................................................................................... 15 Statement of Activities ......................................................................................................................... 16 Fund Financial Statements: Balance Sheet - Governmental Funds .................................................................................................. 18 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position ..................................................................................................... 19 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................... 20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities .................................... 21 Statement of Net Position - Proprietary Fund ...................................................................................... 22 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund ............................................................................................................ 23 Statement of Cash Flows - Proprietary Fund ....................................................................................... 24 Statement of Fiduciary Net Position - Fiduciary Funds ....................................................................... 25 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................................... 26 Notes to the Basic Financial Statements ..................................................................................................... 27 REQUIRED SUPPLEMENTARY INFORMATION: Schedule of Changes in Total OPEB liability ....................................................................................... 84 Schedule of Changes in Net Pension Liability – General Employees Retirement Fund ....................... 85 Schedule of Changes in Net Pension Liability – Fire and Police Retirement Fund .............................. 87 Schedules Contributions and Investment Returns – Retirement Funds ............................................... 89 Notes to the Schedule of Contributions ................................................................................................ 90 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund ................................................................................................. 91 Notes to the Budgetary Required Supplementary Information ............................................................ 92 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA FINANCIAL STATEMENTS SEPTEMBER 30, 2024 TABLE OF CONTENTS (Continued) OTHER SUPPLEMENTARY INFORMATION: Schedule of Departmental Expenditures– Budget and Actual – General Fund .................................... 93 Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 96 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds ........................................................................................................ 97 Combining Statement of Net Position – Pension Trust Funds .............................................................. 98 Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds ........................... 99 Schedule of Revenues and Departmental Expenses – Budget and Actual – Country Club Fund – Budgetary Basis .......................................................... 100 STATISTICAL SECTION Net Position by Component ............................................................................................................... 102 Changes in Net Position ..................................................................................................................... 103 Fund Balances, Governmental Funds ................................................................................................. 105 Changes in Fund Balances, Governmental Funds .............................................................................. 106 Net Assessed Value and Estimated Actual Value of Taxable Property ............................................. 108 Property Tax Rates - Direct and Overlapping Governments............................................................... 109 Principal Property Taxpayers ............................................................................................................. 110 Property Tax Levies and Collections ................................................................................................. 111 Ratios of Outstanding Debt by Type ................................................................................................... 112 Direct and Overlapping Governmental Activities Debt ...................................................................... 113 Pledged-Revenue Coverage ................................................................................................................ 114 Demographic and Economic Statistics ................................................................................................ 115 Principal Employers ........................................................................................................................... 116 Full-Time Equivalent Village Government Employees by Function .................................................. 117 Operating Indicators by Function/Program ........................................................................................ 118 Capital Asset Statistics by Function/Program ..................................................................................... 119 OTHER REPORTS 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 ................................ 120 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida ............................................................................................................................... 122 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes .................................................................................................... 125 3/8/25 Final Draft INTRODUCTORY SECTION 3/8/25 Final Draft 501 U.S. HIGHWAY 1, NORTH PALM BEACH, FL 33408 ▪ (561) 904-2122 ▪ FAX (561) 431-0311 March 13, 2025 To the Honorable Mayor, Esteemed Members of the Village Council, and Valued Residents Village of North Palm Beach, Florida With pleasure, the Finance Department and Village Manager's Office present the Annual Comprehensive Financial Report (Annual Report) for the Village of North Palm Beach, Florida, covering the fiscal year ended on September 30, 2024. This report aims to furnish the Village Council, Village staff, our citizens, lenders, and other stakeholders with comprehensive insights into the financial status and undertakings of the Village government. The Village shoulders the responsibility for the accuracy of the data presented herein and for ensuring the completeness and fairness of the presentation, inclusive of all disclosures. Enclosed within are data that, to the best of our knowledge and belief, are materially accurate and presented in a manner that reflects the financial position and operational outcomes of the Village across its various funds. We are confident that all necessary disclosures have been provided to enable readers to gain a thorough understanding of the Village's financial matters. THE REPORT We are pleased to share that Nowlen, Holt & Miner, P.A., Certified Public Accountants, have issued an unmodified ("clean") opinion on the Village of North Palm Beach's financial statements for the fiscal year concluding on September 30, 2024. The independent auditor's report precedes the Management’s Discussion and Analysis (MD&A), which offers a narrative, overview, and analysis of the fundamental financial statements. The MD&A complements this transmittal letter and should be reviewed in conjunction with it. The Annual Report serves as a tool for economic, social, and political decision-making, as well as for assessing accountability to our citizenry by: •Comparing actual financial outcomes with the approved budget, as applicable; •Evaluating financial condition and operational results; •Ensuring compliance with finance-related laws, rules, and regulations; •Assessing the efficiency and effectiveness of Village operations. THE VILLAGE OF NORTH PALM BEACH “THE BEST PLACE TO LIVE UNDER THE SUN” 3/8/25 Final Draft ii VILLAGE PROFILE The Village The Village of North Palm Beach, incorporated in 1956, primarily serves as a residential community. The registered population stands at approximately 13,162 surging to around 18,000 during winter months as residents designate their northern homes as their official residences. The populace generally falls within middle to upper-income brackets. Located in northeastern Palm Beach County, Florida, the Village is known for its abundance of waterfront property (lakes, canals, and the Atlantic Ocean) as well as other assets: Country Club with a golf course, driving range, pool, tennis courts and restaurant; four parks; marina; library; police and fire rescue stations; and a public elementary school. The governing body of the Village consists of a five-member Village Council, each of whom is elected to two-year overlapping terms. The Mayor is selected by majority vote of the Council and serves for a term of one year. Day-to-day affairs of the Village are under the leadership of the Village Manager who is appointed by the Council. FINANCIAL DATA Financial Reporting System and Budgetary Controls The Village's financial records for its general governmental operations are maintained on the modified accrual basis, which means that revenues are recorded when available and measurable and expenditures are reported when goods and services are received and the related liabilities are incurred. Financial reporting for its Enterprise Funds (i.e., the Country Club & Stormwater Utility) is presented using the full accrual basis of accounting required by Generally Accepted Accounting Principles (GAAP) for its annual financial report. The Country Club & Stormwater Utility Fund annual budgets are adopted using a modified accrual basis of accounting (identical to the general government operations mentioned above) which is consistent with how general ledger financial records are maintained throughout the year by the Village administration. In developing and evaluating the Village's financial and accounting system, consideration is given to the adequacy of internal accounting controls which are designed to provide reasonable, but not absolute, assurance regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition and (b) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the Village's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The General Fund is the only budgeted Governmental Fund. The Village of North Palm Beach maintains budgetary controls through the annual budget public hearing and approval process for the GAAP-based budget. The formal budget approval for each fiscal year is accomplished in a manner compliant with Florida State Statute 200.065, commonly referred to as Truth-in-Millage (TRIM). The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. 3/8/25 Final Draft iii ECONOMIC OUTLOOK Property Values The Village relies significantly on ad valorem property taxes, constituting 67% of its annual General Fund financial resources. While the area experienced substantial growth in gross assessed property values in recent years, economic downturns and real estate fluctuations have impacted the Village's financial resources. However, the community has witnessed significant residential property investments in recent years, with notable increases in gross taxable property values in 2024. The Village’s gross taxable property values increased in 2024 to $3,375,264,084 or nearly 14.30%, over 2023’s valuation. In 2016, following the completion of a design charrette process in which North Palm Beach residents described their vision for the community’s future, the Village adopted the Citizens’ Master Plan. It is anticipated that a viable Master Plan that identifies the highest and best use of properties on U.S. 1 and Northlake Boulevard and Alternate A1A will encourage investment in the community that will create an enhanced sense of place, active uses and an increase in Village revenues. Significant initiatives included the creation of a form-based code to encourage redevelopment in the Village’s commercial corridors, which was completed in 2020 and has resulted in the submittal of applications and concept plans for the redevelopment of a number of underutilized commercial properties; the study of the US1 Corridor to determine if two of the roadway’s six lanes should be repurposed for landscaping and bicycle/pedestrian traffic; and the redesign of the US1 and Prosperity Farms Road Bridges to serve as architectural features signaling the entry into the community. Investment Revenues The Great Recession had a significant impact on Village investment revenues. In the short-term, the Village reacted by modifying its investment strategies by directing investments towards the Treasury market to better protect and ensure the availability of the Village’s investment balances. This move proved successful in safeguarding Village investments during this market free fall but impacted the interest/dividend revenues to the Village. The Village, with the assistance of the Village’s Audit Committee, adopted a “revised” Investment Policy designed to provide safety and liquidity while maximizing investment return(s). The newly adopted policy provided numerous investment strategies, parameters, and safeguards. The policy additionally provided for 1/12 of the annual operating budget to be deposited in a liquid interest-bearing account so as not to impede operations should other funds be temporarily unavailable. The Audit Committee and staff, along with the Village’s Investment Advisor, continue to explore other investment opportunities that will improve yields in future years while still ensuring the safety of our investments. Personnel Costs In recent years, the Village has implemented several retirement plan amendments followed by significant salary adjustments, which have magnified the impact and cost of retirement changes. However, these adjustments, alongside improvements in the financial markets, have positively influenced retirement plans. Due to legislative changes and catastrophic claims losses, the Village has experienced substantial increases in annual health insurance costs over the past few years. In response, in 2018, the Village introduced a high deductible insurance plan and funded health savings accounts to manage escalating expenses. Additionally, the Village continues to prioritize Employee Wellness initiatives to mitigate healthcare costs and improve savings opportunities with providers. 3/8/25 Final Draft iv The financial considerations related to personnel salaries and benefits will persistently influence the future financial planning and service direction of our Village. Around 58% of the yearly budget is designated for wages and fringe benefits, signifying their critical role in determining staffing levels, public services, and community projects. These expenditures will continue to play a central role in defining our Village's financial framework and operational approaches in the upcoming fiscal period. As we anticipate the challenges ahead in Fiscal Year 24/25, it is evident that personnel costs, including salaries and benefits, will remain a focal point of our financial deliberations. INITIATIVES AND FUTURE PROJECTS For Fiscal Year 2024-25, the Village Council reiterated its vision to sustain the Village as the “Best Place to Live Under the Sun.” As part of that vision, the Council developed the following strategic themes and objectives to guide the Village’s financial plan in 2024 that is carried into 2025: Community Culture and Character Maintaining and respecting the quaint village ambiance, cultural heritage, and charm of North Palm Beach stands as a paramount concern for the Village Council across its policy deliberations. Examples of this commitment include safeguarding the traditional boat and RV storage at Anchorage Park, carefully regulating the size and scale of new housing developments to harmonize with the village's character, and fostering small-scale events to foster community cohesion. These initiatives underscore the Council's dedication to nurturing the distinct cultural identity and character of the community Community Engagement The Village Council endeavors to foster trust and strong relationships that encourage community engagement through transparent and effective communication channels. In pursuit of this objective, the Village is dedicated to enhancing communication with both residents and businesses. A notable initiative, which is growing in popularity, includes the weekly e-newsletter, which provides timely updates on upcoming meetings, Village Council discussions, construction projects, and events. Additionally, the Village prioritizes attentive listening to residents' perspectives by organizing "Public" meetings aimed at gathering individual feedback on redevelopment matters affecting the community. Quality of Life Quality of Life remains a paramount focus for the Village, aiming to deliver exceptional amenities, robust programming, and dependable infrastructure while prioritizing safety and well-being within the community. To achieve this goal, the Village is committed to maintaining safe, clean, and reliable infrastructure, offering high-quality and market-driven amenities and programming, and leveraging the community's distinctive natural assets, particularly our waterways. A greater focus on recreation programming, an increase in maintenance and capital investment in existing infrastructure, pedestrian improvements to the US1 and Earman River bridges and plans to improve Lighthouse Drive are all examples of initiatives taking place this year to address Quality of Life issues. 3/8/25 Final Draft v All Neighborhoods as Safe and Desirable Places to Live The Village Council is committed to fostering a living environment where every corner of the Village reflects a place where we would proudly have our families reside. To achieve this, the Council prioritizes excellent public safety measures, promotes and maintains aesthetic standards, and upholds codes that align with community values and needs. Emphasizing code compliance is pivotal in attaining this objective. The Citizens' Master Plan Report underscored the significance of this approach, citing "stressed" neighborhoods characterized by neglected landscapes, faded exteriors, and overgrown lawns. To address these concerns, the Village has adjusted staff schedules to ensure weekend coverage and deployed a Marine Unit Code Officer to patrol the village waterways. Furthermore, collaboration between Code and the Neighborhood Enhancement Team will engage residents in resolving quality of life issues. People and Organizational Performance Through this goal, the Village seeks to ensure that Village services are responsive to the community’s needs and are equitably and efficiently delivered. This will be done, in part, by recruiting and retaining qualified staff. This goal is also intended to emphasize financial sustainability and fiscal responsibility through a diversified revenue stream and efficient management of resources. Annexation of adjacent unincorporated areas and implementation of the Citizens’ Master Plan Report (adopted in October, 2016), which will encourage mixed use development along the Village’s commercial corridors, will assist the Village in achieving this strategic goal as well. Economic Vitality The Village Council is actively promoting commercial services and retail options that align with the needs and expectations of our community. Building upon insights from the Citizens’ Master Plan Report, the Council has initiated the development and adoption of new regulations aimed at revitalizing our commercial districts, securing a sustainable financial future, and enriching the small-town ambiance that defines North Palm Beach. In alignment with the Master Plan, the Village has meticulously reviewed and revised the Comprehensive Plan and Land Development regulations to streamline the development process. The introduction of the new commercial code has sparked substantial interest from developers, with the Village anticipating the review of at least one significant development application along US1 in the forthcoming year. All proposed projects will undergo thorough evaluation to ensure alignment with the objectives outlined in the Master Plan, Comprehensive Plan, and Land Development regulations. Concurrently, the Village’s Business Advisory Board will collaborate with existing businesses to assess their needs and contribute to the rejuvenation of our commercial corridors. This collaborative effort underscores our commitment to fostering a vibrant and thriving commercial landscape reflective of our community’s values and aspirations. 3/8/25 Final Draft vi OTHER INFORMATION Independent Audit Article 11, Section 2.18 of the Village Charter requires an annual audit of the books of account, financial records and transactions of all administrative departments of the Village by independent, certified public accountants selected by the Village Council. To substantiate that this requirement has been met, the independent auditor's report is included in this report. Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Financial Reporting to the Village of North Palm Beach for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2023. The Village has received this award since 1988. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, the governmental unit must publish an easily readable and efficiently organized Annual Report. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We expect our current Annual Report will meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The GFOA also presented a Distinguished Budget Presentation Award to the Village for its annual budget for the fiscal year beginning October 1, 2024. The Village has received this award since 2010. The Distinguished Budget Presentation Award is a prestigious national award that recognizes conformance with the highest principles of governmental budgeting. In order to qualify for the Distinguished Budget Presentation Award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. Acknowledgements The preparation of this report would not have been possible without the efficient and dedicated services from the entire staff of the Finance Department. We would like to thank the Mayor and Council for their unfailing support for maintaining the highest standards of professionalism in the management of the Village of North Palm Beach’s finances. Respectfully submitted, Charles Huff Samia Janjua Charles Huff Samia Janjua Village Manager Deputy Village Manager 3/8/25 Final Draft vii THE VILLAGE OF NORTH PALM BEACH, FLORIDA PRINCIPAL VILLAGE OFFICIALS SEPTEMBER 30, 2024 Title Name Mayor Susan Bickel Vice Mayor Deborah Searcy President Pro Tem Lisa Interlandi Council Member Kristin Garrison Council Member Orlando Puyol Village Manager Charles Huff Deputy Village Manager Samia Janjua Director of Finance Erica Ramirez Village Clerk Jessica Green 3/8/25 Final Draft Village Attorney Village Boards Audit Committee Business Advisory Golf Advisory Infrastructure Surtax Environmental Committee Library Advisory Pension Boards Planning Commission Recreation Advisory Waterways Board The Residents Village Council Village Clerk Operating Departments Community Development Finance Human Resources Information Technology Library Police Fire Rescue Public Works Parks & Recreation Country Club Village Manager Village of North Palm Beach OrganizationalStructure viii 3/8/25 Final Draft ix Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Village of North Palm Beach Florida For its Annual Comprehensive Financial Report for the Fiscal Year Ended September 30, 2023 Executive Director/CEO 3/8/25 Final Draft FINANCIAL SECTION 3/8/25 Final Draft 1 INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of North Palm Beach, Florida as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Village of North Palm Beach, Florida’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 Village of North Palm Beach, Florida, as of September 30, 2024, 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 Village of North Palm Beach, 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. 3/8/25 Final Draft 2 Emphasis of Matter As discussed in Note 18 to the financial statements, the beginning net position of the Governmental Activities, the General Fund, and the Country Club Fund were restated for unrecorded accrued liabilities. 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 Village of North Palm Beach, Florida’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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 3/8/25 Final Draft 3 expressing an opinion on the effectiveness of the Village of North Palm Beach, 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 Village of North Palm Beach, 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 on pages 5 through 14, Pension and Other Postemployment Benefit trend information on pages 84 through 90, and budgetary comparison information on pages 91 through 92 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 Village of North Palm Beach, Florida’s basic financial statements. The accompanying other supplementary information 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 3/8/25 Final Draft 4 supplementary information 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 introductory section and the statistical section 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 7, 2025, on our consideration of the Village of North Palm Beach, 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 Village of North Palm Beach, 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 Village of North Palm Beach, Florida’s internal control over financial reporting and compliance. West Palm Beach, Florida March 7, 2025 3/8/25 Final Draft 5 MANAGEMENT'S DISCUSSION AND ANALYSIS The Village of North Palm Beach, Florida's (the Village) Administration provides readers with this narrative overview and analysis of the financial activities of the Village for the fiscal year ended September 30, 2024. Please review it in conjunction with the accompanying transmittal letter starting on page i, as well as the accompanying basic financial statements. TABLE 1 FINANCIAL HIGHLIGHTS (in millions) September 30,Increase/Statement 2024 2023 (Decrease)Page # Total net position $55.57 $49.79 $5.78 15 Unrestricted net position available for future use $22.48 $19.27 $3.21 15 Governmental net position $47.76 $43.00 $4.76 15 Total revenues from all sources $46.94 $43.62 $3.32 16 - 17 Governmental revenues $38.57 $35.66 $2.91 16 - 17 Total cost of all Village programs $41.15 $38.91 $2.24 16 Governmental transfers to Business-type $0.45 $1.28 ($0.83)17 Governmental change in net position $4.76 $2.58 $2.18 17 Proprietary change in net position $1.03 $1.28 ($0.25)23 General fund revenues over (under) expenditures $5.40 $3.37 $2.03 20 General fund unassigned fund balance $19.55 $15.27 $4.28 18 As a percent of general fund expenditures 63.35%52.47%10.88% Change in total long-term debt for the Village ($1.73)($1.96)$0.23 USING THIS ANNUAL REPORT This annual report comprises a series of financial statements, delineated into three components: 1. Government-wide financial statements, encompassing the Statement of Net Position and the Statement of Activities, which offer insights into the comprehensive activities of the Village. 2. Fund financial statements, elucidating the financing of services in the short term and outlining remaining resources for future expenditure. These statements also provide a detailed account of the Village's operations, focusing on its most significant funds. 3. Notes to the basic financial statements, which extend upon the information presented in the government-wide and governmental fund statements. REPORTING ON THE VILLAGE AS A WHOLE Statement of Net Position and the Statement of Activities (Government-wide) A commonly asked question concerning the Village's financial health revolves around whether the year's activities positively impacted overall financial well-being. The Statement of Net Position and the Statement of Activities provide insight into the Village as a whole and its activities, aiding in addressing this question. These statements encompass all assets, deferred outflows of resources, liabilities, and deferred inflows of resources, utilizing the accrual basis of accounting, akin to practices employed by most private-sector companies. They consider all revenues and expenses for the current year, irrespective of cash receipt or payment timing. 3/8/25 Final Draft 6 These two statements present the Village's net position and changes therein. Net position, defined as the variance between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, serves as a metric for assessing the Village's financial health or position. Changes in net position over time indicate whether the financial health is improving or deteriorating. The Statement of Net Position and the Statement of Activities provide information on the following: • Governmental activities: All basic services offered by the Village fall under governmental activities, encompassing general government, community development, public safety, public services, library, and recreation. These activities are primarily funded through property taxes, sales taxes, utility taxes, and franchise fees. • Proprietary activities/Business-type activities: The Village charges customers a fee to cover some or most of the costs associated with the services provided. The Village's Country Club Fund and the Stormwater Utility Fund fall under this category. REPORTING THE VILLAGE'S MOST SIGNIFICANT FUNDS Fund Financial Statements The fund financial statements provide detailed information about the most significant funds—not the Village as a whole. Some funds are required to be established by State law. However, management establishes other funds that aid in the management of money for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The Village's three types of funds—governmental, proprietary, and fiduciary—use different accounting approaches as explained below. • Governmental Funds Most of the Village's basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out, with balances available for spending remaining at year-end. These funds are reported using an accounting method called the modified accrual accounting method, which measures cash and all other financial assets that can be converted to cash readily. The governmental fund statements provide a detailed short-term view of the Village's general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the Village's programs. The Village maintains nine individual governmental funds: the General Fund, two Capital Projects Funds, and six Special Revenue Funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the General Fund, the Infrastructure Surtax Fund, and the Special Projects Fund, all of which are considered major funds (generally accepted accounting principles define a fund as major based on that fund’s size relative to the other funds of the government; a fund may also be reported as major if the government's officials believe that fund is particularly important to financial statement users). The remaining funds are considered non-major funds, and data from these governmental funds are combined into a single column for an aggregated presentation. The basic governmental fund financial statements can be found on pages 18-21 of this report. 3/8/25 Final Draft 7 • Proprietary Funds Proprietary funds report any activity for which the costs of providing goods and services to the general public on a continuing basis are primarily financed or recovered through user charges. These funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. This is similar to that found in the private sector and provides a periodic measurement of net income. Proprietary activities are accounted for in enterprise funds for the Country Club and Stormwater operations. The Country Club fund was the only major enterprise fund for the year ended September 30, 2024. The basic proprietary fund financial statements can be found on pages 22-24 of this report. • Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. The funds in this category are the Village’s Pension Trust Funds and Custodial Funds. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Village's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 25-26 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS As previously mentioned, the net position can serve as a valuable indicator of a government's financial standing over time. In the Village's case, its net position stood at $55.57 million at the end of the latest fiscal year. A considerable portion of the Village's net position (55.81%) represents its investment in capital assets, such as land, buildings, machinery, and equipment. This figure deducts any associated debt still outstanding, which was utilized to procure these assets. The Village utilizes these capital assets to deliver services to its citizens. Consequently, these assets are not liquid and cannot be utilized for future expenditure. 3/8/25 Final Draft 8 Table 2 Village of North Palm Beach Net Position (In Thousands) Governmental Business-type Activities Activities Total 2024 2023 2024 2023 2024 2023 Assets: Current and other assets 36,550$ 32,853$ 3,151$ 2,401$ 39,701$ 35,254$ Capital assets 35,556 35,307 7,074 6,638 42,630 41,945 Total assets 72,106 68,160 10,225 9,039 82,331 77,199 Deferred outflows of resources:5,895 9,910 2 2 5,897 9,912 Liabilities: Current liabilities 2,051 1,870 2,074 1,489 4,125 3,359 Long-term liabilities 23,732 26,553 307 575 24,039 27,128 Total liabilities 25,783 28,423 2,381 2,064 28,164 30,487 Deferred inflows of resources:4,456 6,643 37 193 4,493 6,836 Net positon: Net investement in capital assets 24,107 22,361 6,908 6,236 31,015 28,597 Restricted 2,075 1,923 2,075 1,923 Unrestricted 21,580 18,720 901 548 22,481 19,268 Total net position 47,762$ 43,004$ 7,809$ 6,784$ 55,571$ 49,788$ The fiscal year 2023 long-liabilities and unrestricted net position have been restated to reflect the prior period adjustment to increase the accrued payroll liability, see Note 18 for additional information. Governmental Activities The cost of all governmental activities this year was $33.36 million. As shown in Table 3, Changes in Net Position, grants and those who directly benefited from the programs covered $5.59 million of this cost, while $27.77 million was financed through general revenues. Governmental activities increased the Village's net position by $4.76 million, accounting for 82% of the total increase in the Village's net position. Additional detail is shown in Table 3, which follows on the subsequent page. 3/8/25 Final Draft 9 Table 3 Village of North Palm Beach Changes in Net Position (In Thousands) Activities Total 2024 2023 2024 2023 2024 2023 Revenues: Program revenues: Charges for services 4,894$ 4,077$ 7,953$ 7,861$ 12,847$ 11,938$ Operating grants and contributions 675 601 675 601 Capital grants and contributions 26 1,152 200 226 1,152 General revenues: Property taxes 22,472 20,000 22,472 20,000 Local option gas taxes 292 306 292 306 Local option infrastructure surtax 1,316 1,288 1,316 1,288 Utility service taxes 3,052 3,001 3,052 3,001 Sales and use taxes 1,883 1,942 1,883 1,942 Franchise taxes 1,601 1,654 1,601 1,654 Investment earnings 2,070 1,394 211 96 2,281 1,490 Miscellaneous 288 73 288 73 Gain on asset disposals - 169 169 Total revenues 38,569 35,657 8,364 7,957 46,933 43,614 Expenses: Program expenses: General Government 4,356 3,781 4,356 3,781 Public Safety 15,916 14,963 15,916 14,963 Public Works 6,280 6,173 6,280 6,173 Community Development 2,061 1,497 2,061 1,497 Leisure Services 4,379 4,942 4,379 4,942 Interest on long-term debt 369 435 369 435 Country Club 7,333 6,941 7,333 6,941 Stormwater 456 182 456 182 Total expenses 33,361 31,791 7,789 7,123 41,150 38,914 Transfers (450) (1,282) 450 1,282 Increase (decrease) in net position 4,758 2,584 1,025 2,116 5,783 4,700 Net position - beginning of year 43,004 40,420 6,784 4,668 49,788 45,088 Net position - end of year 47,762$ 43,004$ 7,809$ 6,784$ 55,571$ 49,788$ Governmental Business-type Activities The fiscal year 2023 program expenses and beginning net position have been restated to reflect the prior period adjustment to increase the accrued payroll liability, see Note 18 for additional information. 3/8/25 Final Draft 10 The Village's programs include General Government, Public Safety, Public Works, Community Development, and Leisure Services. The net cost of each program (total cost minus revenues generated by the activities) is presented below. This net cost demonstrates the degree to which the Village's general taxes support each program. Table 4 Village of North Palm Beach Cost of services (In Thousands) Total Cost Net Cost Total Cost Net Cost of Services of Services of Services of Services General government 4,356$ (4,139)$ 3,781$ (3,514)$ Public safety 15,916 (14,688) 14,963 (13,746) Public works 6,280 (5,657) 6,173 (5,687) Community development 2,061 759 1,497 680 Leisure services 4,379 (3,672) 4,942 (3,227) Interest on long-term debt 369 (369) 435 (435) 33,361$ (27,766)$ 31,791$ (25,929)$ 2024 2023 At the end of the current year, as compared to the prior year, the total cost of services increased by $1.60 million. This increase is primarily attributed to the rise in personnel costs for Public Safety and General Government. Business-Type Activities At the end of the current year, as compared to the prior year, Charges for Services (revenues) for the Business-type activities increased by $0.09 million, while expenses increased by $0.67 million. The net position of the Proprietary Funds at September 30, 2024, was $7.80 million, reflecting an increase of $1.02 million. This growth is mainly due to increased golf activity at the Country Club. 3/8/25 Final Draft 11 FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds The primary focus of the Village's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information aids in assessing the Village's financing requirements. Specifically, the unrestricted (unassigned/assigned) 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 close of the current fiscal year, the combined fund balance for all Governmental Funds was $31.77 million, reflecting a $5.30 million increase from the 2023 fund balance of $26.47 million. Approximately 88% of the combined ending fund balance ($27.85 million) constitutes unrestricted (unassigned/assigned) fund balance, available for discretionary government spending. The remaining fund balance ($3.92 million) is restricted (non-spendable/restricted) to indicate commitments for various restricted purposes, thus not available for new spending. General Fund The General Fund serves as the primary operating fund for the Village. At the close of the current fiscal year, the unassigned fund balance of the General Fund stood at $19.55 million, with the total fund balance reaching $22.28 million. To gauge the General Fund's liquidity, it is pertinent to compare both the unassigned fund balance and total fund balance to total fund expenditures. The unassigned fund balance constitutes 63% of total general fund expenditures, while the total fund balance represents 72% of the same amount. The increase in the unassigned fund balance ($19.55 million) from the 2023 figure of $15.26 million amounts to $4.29 million. The principal contributors to this increase are outlined below: • Ad-Valorem taxes increased $2.47 million due to the increase in property taxable value from $3.38 billion to $3.64 billion (this includes $36.70 million in new construction). • Investment Revenues increased $0.69 million due to higher interest rates. • The Village received an unbudgeted insurance reimbursement of $0.89 million for a claim filed in the prior year related to EF-2 tornado damage from April 2023. • Revenues for Licenses and Permits increased by $0.46 million from last year. This is primarily a result of an increase in Building Permits. The boost in the aforementioned revenues, coupled with effective containment of operating costs, were pivotal factors contributing to the positive impact on the Village's General Fund. General Fund Budgetary Highlights Differences between the original budget and the final amended budget amounted to $439,959 and can be summarized as follows: • Prior Year Open Purchase Order Carryover: $439,959 3/8/25 Final Draft 12 General Fund Budget Analysis As indicated on pages 93-95 of this report, in the Schedule of Departmental Expenditures – Budget and Actual, there was an overall favorable budget-to-actual cost variance of $0.72 million in General Fund Departmental Expenditures. Special Projects Fund The Village's Special Projects Fund is utilized to account for specific capital projects sanctioned by the Village Council. Appropriations within this fund remain active and carry over to subsequent years until intended expenditures are fulfilled or until they are revised or nullified. At the conclusion of the present fiscal year, the total fund balance amounted to $4.61 million. Infrastructure Surtax Fund The Village's Infrastructure Surtax Fund is utilized to track surtax proceeds. On November 8, 2016, PBC voters approved a one-cent sales surtax, increasing the sales tax from 6% to 7%, effective January 1, 2017. The surtax is set to expire on December 31, 2026. The utilization of surtax proceeds is specifically earmarked for financing, planning, and constructing infrastructure, among other purposes. Appropriations within this fund remain active and carry over to subsequent years until planned expenditures are fulfilled, amended, or revoked. As of the conclusion of the current fiscal year, the total fund balance stands at $1.70 million. Proprietary Funds Proprietary funds offer a more detailed breakdown of the information presented in the government-wide financial statements. As previously stated, the primary proprietary fund for the Village is the Country Club Fund. At the conclusion of the current fiscal year, the unrestricted net position for the Country Club amounted to $0.18 million, whereas the total net position for the Country Club stood at $6.57 million. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The capital assets of the Village are those assets used in the performance of Village functions, including equipment, buildings, land, park facilities, etc. The Village has elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets acquired in fiscal years ending after June 30, 1980, or significantly reconstructed or improved during that multiyear period. As of September 30, 2024, and 2023, the Village's investment in capital assets for its governmental and business-type activities amounts to $42.63 million and $41.94 million, respectively (net of accumulated depreciation). 3/8/25 Final Draft 13 Table 5 Village of North Palm Beach Capital Assets (In Thousands) Governmental Business-type Activities Activities Total 2024 2023 2024 2023 2024 2023 Land 2,056$ 2,056$ 1,051$ 1,051$ 3,107$ 3,107$ Construction in progress 2,620 2,667 191 109 2,811 2,776 Buildings and improvements 41,192 39,070 13,998 12,867 55,190 51,937 Furniture, fixtures and equipment 12,826 11,844 1,226 1,059 14,052 12,903 Total assets 58,694 55,637 16,466 15,086 75,160 70,723 Less accumulated depreciation (23,139) (20,331) (9,392)(8,448)(32,531) (28,779) Net position 35,555$ 35,306$ 7,074$ 6,638$ 42,629$ 41,944$ Additional information on the Village's capital assets can be found in Note 5 on pages 48 to 50 of this report. Debt Currently, the Village utilizes debt financing on an as-needed basis each year. At the end of the current fiscal year, the Village had a total long-term debt of $11.62 million, with $11.45 million in governmental activities and $0.17 million in business-type activities. None of the Village’s long-term debt consists of debt backed by the full faith and credit of the government. Table 6 Village of North Palm Beach Outstanding Debt (In Thousands) Governmental Business-type Activities Activities Total 2024 2023 2024 2023 2024 2023 Loans payable 9,010$ 9,980$ $ 195$ 9,010$ 10,175$ Lease liability 166 207 166 207 Financing contracts 2,439 2,965 2,439 2,965 Total 11,449$ 12,945$ 166$ 402$ 11,615$ 13,347$ Additional information on the Village's debt can be found in Note 6 on pages 50 through 54 of this report. 3/8/25 Final Draft 14 NEXT YEAR'S BUDGET AND ECONOMIC FACTORS The Village's Unassigned Fund Balance is considered by the Administration as a gauge of Village financial stability. The unassigned general fund balance increased to $19.55 million during the 2024 fiscal year primarily due to increases in several revenue categories. The FY 2024/25 Budget reflects ongoing enhancements to citizen services, public safety, and public facility maintenance while placing emphasis on improving community appearance and financial stability. Most importantly, the budget provides essential resources for the Village of North Palm Beach to maintain and further enhance services for residents without dipping into the General Fund Unassigned Fund Balance. The Village's operating millage rate was increased to $7.40 mils. The Village's financial plan embodies an assertive approach to adequately sustain infrastructure and address organizational gaps to deliver services to the community. While the budget allocates resources to enhance the Village's ability to handle service and maintenance demands annually, there are also notable capital investments planned for the upcoming fiscal year. Enhancing the dry storage area in Anchorage Park and providing funding to Palm Beach County to incorporate aesthetic features and pedestrian amenities into their design of the Prosperity Farms Road Bridge Replacement Project are distinctive investments for the upcoming year. These forthcoming investments will result in increased expenditures; however, rising property valuations and sustained state and national economic growth will mitigate the impact of these projects on the annual financial plan. CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT This financial report is intended to offer our citizens, taxpayers, customers, investors, and creditors a comprehensive overview of the Village's finances, demonstrating the Village's accountability for the funds it receives. If you have inquiries regarding this report or require further financial details, please reach out to the Finance Department of the Village of North Palm Beach, located at 501 U.S. Highway 1, North Palm Beach, Florida 33408. 3/8/25 Final Draft BASIC FINANCIAL STATEMENTS 3/8/25 Final Draft Statement of Net Position September 30, 2024 Governmental Business-type Activities Activities Total Assets Cash and cash equivalents 20,346,049$ 4,388,254$ 24,734,303$ Investments 10,473,428 10,473,428 Accounts receivable 561,784 118,038 679,822 Lease - receivable current portion 81,420 81,420 Accrued interest 82,336 82,336 Inventories 94,324 124,962 219,286 Prepaids 48,888 19,557 68,445 Due from other governments 394,207 199,999 594,206 Internal balances 1,700,000 (1,700,000) Non-current assets Lease - receivable 2,767,936 2,767,936 Capital assets: Nondepreciable 4,676,276 1,242,576 5,918,852 Depreciable (net of depreciation)30,879,670 5,831,659 36,711,329 Total assets 72,106,318 10,225,045 82,331,363 Deferred outflows of resources Other postemployment benefits related items 26,384 1,595 27,979 Pension related items 5,868,179 5,868,179 Total deferred outflows of resources 5,894,563 1,595 5,896,158 Liabilities Accounts payable 970,631 577,951 1,548,582 Deposits 76,469 76,469 Accrued liabilities 738,930 64,594 803,524 Unearned revenue 234,374 1,355,426 1,589,800 Accrued interest payable 107,691 107,691 Noncurrent liabilities: Due within one year 2,954,821 224,915 3,179,736 Due in more than one year 20,776,676 81,667 20,858,343 Total liabilities 25,783,123 2,381,022 28,164,145 Deferred inflows of resources Deferred revenue 218,610 218,610 Leases 2,614,006 2,614,006 Other postemployment benefits related items 905,971 36,405 942,376 Pension related items 717,157 717,157 Total deferred inflows of resources 4,455,744 36,405 4,492,149 Net position Net investment in capital assets 24,106,574 6,907,891 31,014,465 Restricted for: Infrastructure 1,697,294 1,697,294 Public safety 144,472 144,472 Enforcement of the Florida Building Code 131,966 131,966 Other purposes 101,912 101,912 Unrestricted 21,579,796 901,322 22,481,118 Total net position 47,762,014$ 7,809,213$ 55,571,227$ THE VILLAGE OF NORTH PALM BEACH, FLORIDA See notes to the financial statements. 15 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Activities For the Year Ended September 30, 2024 Charges for Functions/Programs Expenses Services Government: Governmental activities General government 4,355,400$ 189,169$ Public safety 15,916,330 630,561 Public works 6,280,133 566,205 Community development and planning 2,060,806 2,819,348 Leisure services 4,379,178 688,903 Interest expense 369,135 Total governmental activities 33,360,982 4,894,186 Business-type activities - country club 7,332,550 7,486,328 Business-type activities - stormwater 455,998 466,472 Total business-type activities 7,788,548 7,952,800 Total government 41,149,530$ 12,846,986$ 16 3/8/25 Final Draft Program Revenues Net (Expense) Revenue and Operating Capital Changes in Net Position Grants and Grants and Governmental Business-type Contributions Contributions Activities Activities Total 27,450$ $ (4,138,781)$ $ (4,138,781)$ 576,346 21,203 (14,688,220) (14,688,220) 56,667 (5,657,261) (5,657,261) 758,542 758,542 14,170 4,330 (3,671,775) (3,671,775) (369,135) (369,135) 674,633 25,533 (27,766,630) (27,766,630) 49,999 203,777 203,777 150,000 160,474 160,474 199,999 364,251 364,251 674,633$ 225,532$ (27,766,630) 364,251 (27,402,379) General Revenues: Taxes: Property taxes 22,472,458 22,472,458 Local option gas taxes 291,717 291,717 Local option infrastructure surtax 1,316,252 1,316,252 Utility service taxes 3,052,329 3,052,329 Franchise taxes 1,600,774 1,600,774 Sales and use taxes 1,883,159 1,883,159 Investment income - unrestricted 2,070,430 210,779 2,281,209 Miscellaneous 287,572 287,572 Transfers (450,000) 450,000 Total general revenues and transfers 32,524,691 660,779 33,185,470 Change in net position 4,758,061 1,025,030 5,783,091 Net position - beginning, as previously presented 43,526,574 6,848,777 50,375,351 Prior period adjustment (522,621) (64,594) (587,215) Net position - beginning, as restated 43,003,953 6,784,183 49,788,136 Net position, end of year 47,762,014$ 7,809,213$ 55,571,227$ See notes to the financial statements. 17 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Balance Sheet Governmental Funds September 30, 2024 Infrastructure Special Nonmajor Total Surtax Projects Governmental Governmental General Fund Fund Funds Funds Assets Cash and cash equivalents 10,570,529$ 1,563,551$ 4,925,958$ 3,286,011$ 20,346,049$ Investments 10,473,428 10,473,428 Accounts receivable 561,784 561,784 Lease receivable 2,849,356 2,849,356 Accrued interest 82,336 82,336 Inventories 94,324 94,324 Prepaids 48,888 48,888 Advances to other funds 1,700,000 1,700,000 Due from other governments 260,464 133,743 394,207 Total assets 26,641,109$ 1,697,294$ 4,925,958$ 3,286,011$ 36,550,372$ Liabilities, deferred inflows of resources, and fund balances Liabilities Accounts payable 550,997$ $ 319,329$ 100,305$ 970,631$ Accrued liabilities 738,930 738,930 Unearned revenue 234,374 234,374 Total liabilities 1,524,301 319,329 100,305 1,943,935 Deferred inflows of resources Deferred revenue 218,610 218,610 Leases 2,614,006 2,614,006 Total deferred inflows of resources 2,832,616 2,832,616 Fund balances Nonspendable: Inventories and prepaids 143,212 143,212 Advances to other funds 1,700,000 1,700,000 Restricted for: Recreation 3,592 3,592 Infrastructure 1,697,294 1,697,294 Streets and roads 92,219 92,219 Public safety 144,472 144,472 Enforcement of the Florida Building Code 131,966 131,966 Library 3,328 3,328 Other purposes 2,773 2,773 Assigned for: Small business grants 16,435 16,435 Neighborhood enhancement team 111,200 111,200 Subsequent year's expenditures 385,081 1,254,049 1,639,130 Special revenue funds 196,202 196,202 Capital project funds 3,352,580 2,989,504 6,342,084 Unassigned 19,549,914 19,549,914 Total fund balances 22,284,192 1,697,294 4,606,629 3,185,706 31,773,821 Total liabilities, deferred inflows of resources, and fund balances 26,641,109$ 1,697,294$ 4,925,958$ 3,286,011$ 36,550,372$ See notes to the financial statements. 18 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position September 30, 2024 Fund balances - total governmental funds 31,773,821$ 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 governmental funds: Governmental capital assets 58,694,702$ Less: accumulated depreciation (23,138,756) 35,555,946 Accrued interest payable (107,691) Revenue notes (9,010,000) Contracts that transfer ownership (2,439,372) Net pension liability (10,003,131) Other postemployment benefits (588,479) Accrued compensated absences (1,690,515) (23,839,188) Other postemployment benefits deferred outflows 26,384 Other postemployment benefits deferred inflows (905,971) Pension related deferred outflows 5,868,179 Pension related deferred inflows (717,157) 4,271,435 Net position of governmental activities 47,762,014$ Long-term liabilities, including notes and bonds payable, are not due and payable in the current period and therefore are not reported in the governmental funds. Long term liabilities at year-end consist of: Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the governmental funds: See notes to the financial statements. 19 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2024 Infrastructure Special Nonmajor Total Surtax Projects Governmental Governmental General Fund Fund Funds Funds Revenues Taxes 27,417,278$ $ $ $ 27,417,278$ Licenses and permits 2,171,127 2,171,127 Intergovernmental 1,983,694 1,316,252 872,449 4,172,395 Charges for services 2,423,911 2,423,911 Fines and forfeitures 241,367 241,367 Investment 1,730,635 88,917 250,878 2,070,430 Miscellaneous 289,355 289,355 Total revenues 36,257,367 1,405,169 250,878 872,449 38,785,863 Expenditures Current General government 4,203,715 4,203,715 Public safety 13,491,811 572,449 14,064,260 Public works 5,395,273 5,395,273 Community development and planning 1,993,644 1,993,644 Leisure services 3,462,501 3,462,501 Capital outlay 419,400 1,457,294 910,927 201,233 2,988,854 Debt service Principal 1,496,211 1,496,211 Interest 398,106 398,106 Total expenditures 30,860,661 1,457,294 910,927 773,682 34,002,564 Excess (deficiency) of revenues over (under) expenditures 5,396,706 (52,125) (660,049) 98,767 4,783,299 Other financing sources (uses) Insurance proceeds 972,932 972,932 Transfers in 725,000 700,194 1,425,194 Transfers out (1,875,194) (1,875,194) Total other financing sources (uses)(902,262) 725,000 700,194 522,932 Net change in fund balances 4,494,444 (52,125) 64,951 798,961 5,306,231 Fund balances Beginning of year, as previously presented 18,312,369 1,749,419 4,541,678 2,386,745 26,990,211 Prior period adjustment (522,621) (522,621) Beginning of year, as restated 17,789,748 1,749,419 4,541,678 2,386,745 26,467,590 End of year 22,284,192$ 1,697,294$ 4,606,629$ 3,185,706$ 31,773,821$ See notes to the financial statements. 20 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Year Ended September 30, 2024 Net change in fund balances - total governmental funds 5,306,231$ 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 capital assets is allocated over their estimated useful lives and reported as depreciation expense: Expenditures for capital assets 3,286,095$ Less: current year depreciation (2,990,002) Net book value for retired assets (46,623) 249,470 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any affect on net assets of governmental activities: Principal payments on debt 1,496,211 Governmental funds report revenues when earned and available. However, in the Statement of Activities, revenues are recognized when earned, regardless of availability: Prior year unavailable grant revenue (1,174,035) Expenses that do not use current financial resources are not reported on the governmental funds but are included in the statement of activities: Change in accrued interest payable 28,971 Change in long-term compensated absences (83,467) Change in net pension liability and related deferred amounts (1,427,440) Change in other postemployment benefits and deferred amounts 362,120 (1,119,816) Change in net position 4,758,061$ See notes to the financial statements. 21 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Net Position Proprietary Funds September 30, 2024 Country Club Nonmajor Total Enterprise Enterprise Enterprise Fund Fund Funds Assets Current assets Cash and cash equivalents 3,794,118$ 594,136$ 4,388,254$ Accounts receivable 115,174 2,864 118,038 Due from other governments 49,999 150,000 199,999 Inventories 124,962 124,962 Prepaids 19,557 19,557 Total current assets 4,103,810 747,000 4,850,810 Non-current assets Capital assets, net 6,556,399 517,836 7,074,235 Total non-current assets 6,556,399 517,836 7,074,235 Total assets 10,660,209 1,264,836 11,925,045 Deferred outflows of resources Other postemployment benefits related items 1,595 1,595 Total deferred outflows of resources 1,595 1,595 Liabilities Current liabilities Accounts payable 552,934 25,017 577,951 Accrued liabilities 64,594 64,594 Deposits 76,469 76,469 Unearned revenue 1,355,426 1,355,426 Lease liability - current portion 166,344 166,344 Compensated absences - current portion 58,571 58,571 Loans payable - current portion Total current liabilities 2,274,338 25,017 2,299,355 Non-current liabilities Other postemployment benefits 35,571 35,571 Compensated absences 46,096 46,096 Advances from other funds 1,700,000 1,700,000 Total non-current liabilities 1,781,667 1,781,667 Total liabilities 4,056,005 25,017 4,081,022 Deferred inflows of resources Other postemployment benefits related items 36,405 36,405 Total deferred inflows of resources 36,405 36,405 Net position Net investment in capital assets 6,390,055 517,836 6,907,891 Unrestricted 179,339 721,983 901,322 Total net position 6,569,394$ 1,239,819$ 7,809,213$ See notes to the financial statements. 22 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Revenues, Expenses, and Changes in Net Position Proprietary Fund For the Year Ended September 30, 2024 Country Club Nonmajor Total Enterprise Enterprise Enterprise Fund Fund Funds Operating revenue Greens fee/cart rentals/golf membership fees 4,869,635$ $ 4,869,635$ Golf shop revenues 762,474 762,474 Driving range revenues 600,505 600,505 Restaurant revenues 271,374 271,374 Tennis revenues 692,721 692,721 Pool revenues 212,843 212,843 Stormwater assessments 466,472 466,472 Miscellaneous 76,776 76,776 Total operating revenues 7,486,328 466,472 7,952,800 Operating expenses Golf course maintenance expenses 1,871,122 1,871,122 Clubhouse grounds expenses 574,076 574,076 Golf shop expenses 1,893,310 1,893,310 Food and beverage expenses 350,990 350,990 Tennis expenses 709,858 709,858 Pool expenses 354,457 354,457 Administrative and general 460,674 1,329 462,003 Repairs and maintenance 419,685 419,685 Amortization 162,279 162,279 Depreciation 910,768 34,984 945,752 Total operating expenses 7,287,534 455,998 7,743,532 Operating income 198,794 10,474 209,268 Nonoperating revenues (expenses) Interest revenue 177,013 33,766 210,779 Interest expense (45,016) (45,016) Total nonoperating revenues (expenses)131,997 33,766 165,763 Income (loss) before capital contributions and transfers 330,791 44,240 375,031 Capital contributions 49,999 150,000 199,999 Transfers in 450,000 450,000 Change in net position 830,790 194,240 1,025,030 Net position - beginning, as previously presented 5,803,198 1,045,579 6,848,777 Prior period adjustment (64,594) (64,594) Net position - beginning, as restated 5,738,604 1,045,579 6,784,183 Net position - ending 6,569,394$ 1,239,819$ 7,809,213$ See notes to the financial statements. 23 3/8/25 Final Draft Country Club Nonmajor Total Enterprise Enterprise Enterprise Fund Fund Funds Cash flows from operating activities: Receipts from customers 7,629,687$ 466,109$ 8,095,796$ Payments to suppliers for goods or services (3,848,088)(443,560)(4,291,648) Payments to employees for services (1,988,641)(1,988,641) Net cash Provided by operating activities 1,792,958 22,549 1,815,507 Cash flows from non-capital financing activities: Transfers in 450,000 450,000 Net cash provided by non-capital financing activities:450,000 450,000 Cash flows from capital and related financing activities: Principal paid on long term debt (356,546)(356,546) Interest paid on debt (45,016)(45,016) Acquisition of capital assets (1,357,108)(66,183)(1,423,291) Net cash provided (used) by capital and related financing activities (1,758,670)(66,183)(1,824,853) Cash flows from investing activities: Interest and dividends on investments 181,139 33,766 214,905 Net increase (decrease) in cash and cash equivalents 665,427 (9,868) 655,559 Cash and cash equivalents at beginning of year 3,128,691 604,004 3,732,695 Cash and cash equivalents at end of year 3,794,118$ 594,136$ 4,388,254$ Reconciliation of operating income to net cash provided by operating activities: Operating income (loss)198,794$ 10,474$ 209,268$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 1,073,047 34,984 1,108,031 Change in OPEB liability and related deferred amounts 278 278 Change in assets and liabilities Increase in accounts receivable (29,815) (363) (30,178) (Increase) decrease in inventory (20,184) (20,184) (Increase) decrease in prepaids 1,327 1,327 Increase (decrease) in accounts payable 370,465 (22,546) 347,919 Increase (decrease) in compensated absences payable 25,872 25,872 Increase (decrease) in deposits 17,809 17,809 Increase (decrease) in deferred revenue 155,365 155,365 Total adjustments 1,594,164 12,075 1,606,239 Net cash provided by operating activities 1,792,958$ 22,549$ 1,815,507$ Noncash investing, capital and financing activities Assets acquired through a right to use lease 122,748$ $ 122,748$ For the Year Ended September 30, 2024 Proprietary Fund Statement of Cash Flows THE VILLAGE OF NORTH PALM BEACH, FLORIDA See notes to the financial statements. 24 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Fiduciary Net Position Fiduciary Funds September 30, 2024 Employee Retirement Custodial Funds Fund Assets Cash and cash equivalents 1,708,535$ 356,112$ Investments: Domestic common equity securities 11,767,503 International common equity securities 3,888,630 U.S. Government and agencies 8,941,202 Municipal bonds 933,741 Domestic corporate bonds 4,532,000 International corporate bonds 432,581 Domestic equity exchange traded funds 3,305,326 International equity exchange traded funds 842,249 Fixed income mutual funds 2,225,802 Domestic equity mutual funds 15,417,737 International equity mutual funds 3,271,978 Real estate investment fund 2,988,698 Money market mutual funds 678,711 Accrued interest and dividends 118,540 Accounts receivable 111,200 Accounts receivable, broker-dealers 2,212,276 Prepaids 8,578 Total assets 63,385,287 356,112 Liabilities Accounts payable 71,219 Total liabilities 71,219 Net position Restricted for pensions 63,314,068 Restricted for individuals, organizations, and other governments 356,112 63,314,068$ 356,112$ See notes to the financial statements. 25 3/8/25 Final Draft Employee Retirement Custodial Funds Fund Additions Contributions Employer 1,191,511$ $ Plan members 661,305 DROP contributions 25,263 State on-behalf payments 551,246 Total contributions 2,429,325 Investment earnings Dividends and interest 1,372,441 16,821 Change in fair value of investments 10,451,005 Total investment earnings 11,823,446 16,821 Less: investment expenses 245,817 Total net investment earnings 11,577,629 16,821 Total additions 14,006,954 16,821 Deductions Administrative expense 181,206 Lump sum DROP distributions 4,801 Benefits 2,052,197 Total deductions 2,238,204 Change in net position 11,768,750 16,821 Net position - beginning 51,545,318 339,291 Net position - ending 63,314,068$ 356,112$ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended September 30, 2024 See notes to the financial statements. 26 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 27 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Village of North Palm Beach, Florida (“the Village”) was incorporated in 1956 pursuant to Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately 1,900 acres of land and 1,200 acres of lakes, canals and lagoons. The Village’s nonseasonal population consists of approximately 13,000 residents, which increases during the winter months to approximately 18,000 people. The Village operates under the Council-Manager form of government and provides the following services to its residents: public safety, planning and zoning, sanitation, library, parks, marinas, and a country club. The Village Council (the “Council”) is responsible for legislative and fiscal control of the Village. As required by generally accepted accounting principles, these financial statements include the Village (the primary government) and its component units. Component units are legally separate entities for which the Village is financially accountable. The Village is financially accountable if: • it appoints a voting majority of the organization’s governing board and (1) it is able to impose its will on the organization, or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the Village, or • the organization is fiscally dependent on the Village and (1) there is a potential for the organization to provide specific financial benefits to the Village or (2) impose specific financial burdens on the Village. Organizations for which the Village is not financially accountable are also included when doing so is necessary in order to prevent the Village’s financial statements from being misleading. Based upon application of the above criteria, the Village of North Palm Beach has determined that there are two legally separate entities to consider as potential component units. The Village of North Palm Beach General Employees’ Retirement Fund and the Village of North Palm Beach Fire and Police Retirement Fund are component units as they are fiscally dependent on and impose a specific financial burden on the Village. They are reported in the Village’s financial statements as pension trust funds in the fiduciary fund’s financial statements. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all non-fiduciary activities of the Village. For the most part, the effect of interfund activities has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 28 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Government-wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements and proprietary fund financial statements are reported using the accrual basis of accounting and the economic resources measurement focus. Fiduciary funds use the accrual basis of accounting and the economic resources measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Village considers revenues to be available if they are collected within 90 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Sales taxes, franchise taxes, licenses, intergovernmental revenue, investment income, and charges for services are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. All other revenues are considered to be measurable and available only when received in cash by the Village. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 29 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) The Village reports the following major governmental funds: General Fund The general fund is the primary operating fund and is used to account for all financial resources applicable to the general operations of the Village except those required to be accounted for in another fund. Infrastructure Surtax Fund The Infrastructure Surtax Fund is a special revenue fund used to account for the surtax proceeds which are restricted to, among other things, the financing, planning and construction of infrastructure. Special Projects Fund The Special Projects Fund is a capital projects fund. The Village reports the following major proprietary fund: Country Club Enterprise Fund The fund accounts for the activities related to the Country Club. The Village reports the following nonmajor proprietary fund. Stormwater Utility Fund The Stormwater Utility Fund is used to account for the charges and related expenses for the Village’s stormwater drainage system. Additionally, the Village reports the following fund types: Special Revenue Funds The Village has four special revenue funds to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific sources. The funds are the Public Safety Fund, Northlake Boulevard Fund, Recreation, and On-Behalf Pension Contributions. Capital Projects Fund The capital projects fund is used to account for the cost of acquiring, constructing, and placing into service those capital improvements, which are associated with activities in the General Fund. Employee Retirement Funds The pension trust funds are fiduciary funds that account for the activities of the General Employees Retirement Fund and the Fire and Police Officers Retirement Fund, which accumulate resources for pension benefits to qualified employees. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 30 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Custodial Funds The Custodial Funds account for assets that are held for individuals, organizations and other governments, that cannot be used to finance the Village’s own programs, and are not required to be reported in another fiduciary fund type. The custodial fund is the Manatee Protection Fund, in which the assets are held for the protection of manatees through the enforcement of boat speed zones on the intracoastal and inland waterways. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government’s country club and various other functions of the Village. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Enterprise Funds are charges to customers for sales and services. Operating expenses for the Enterprise Funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Village’s policy to use restricted resources first, then unrestricted resources as needed. D. Assets, Liabilities, and Net Position or Fund Balance Cash and Cash Equivalents Cash and cash equivalents consist of petty cash, deposits in checking accounts, money market mutual funds, investments with Florida Prime managed by the State of Florida, State Board of Administration and Florida Public Assets for Liquidly Management (FL Palm) sponsored by Florida School Boards Association and the Florida Association of District School Superintendents For purposes of determining cash equivalents, the Village has defined its policy concerning the treatment of short-term investments to include investments with a maturity of three months or less when purchased, as cash equivalents if management does not plan to reinvest the proceeds. Short- term investments that management intends to rollover into similar investments are considered part of the investment portfolio and are classified as investments. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 31 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Net Position or Fund Balance (Continued) Accounts Receivable Accounts receivable of the General Fund consists of billed and unbilled receivables. Concentration of Credit Risk The Village performs ongoing credit evaluations of its customers and does not require collateral. The Village maintains an allowance for uncollectible accounts at a level which management believes is sufficient to cover potential credit losses. Investments Investments are reported at fair value as required by generally accepted accounting principles. The fair value of an investment is the amount that the Village could reasonably expect to receive for it in a current sale between a willing buyer and a willing seller, other than in a forced or liquidation sale. Purchases and sales of investments are recorded on a trade date basis. Interfund Transactions Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to” or “due from other funds”. Any residual balance outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. Transfers and interfund balances totally within governmental activities and those that are totally within business-type activities are eliminated and not presented in the government-wide financial statements. Transfers and balances between governmental and business-type activities are presented in the government-wide financial statements. Inventories and Prepaid Items Inventories are valued at cost determined on a first-in, first-out basis (FIFO). The costs of governmental fund type inventory are recorded as expenditures when consumed rather than when purchased. Inventories in the Enterprise Fund consist of goods for sale to the public. The initial cost is recorded as an asset at the time the individual inventory items are purchased and are charged against operations in the period when used. Payments made to vendors for services that will benefit future periods are reported as prepaid items using the consumption method by recording an asset for the prepaid amount and reflecting an expenditure in the year in which the services are consumed. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 32 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Net Position or Fund Balance (Continued) Capital Assets and Depreciation Capital assets, which include property, plant, infrastructure, and equipment, are reported in the applicable governmental or business-type activities column in the government-wide financial statements. The Village capitalizes all land purchases. The capitalization policy for other assets are items with an estimated life in excess of one year and an initial individual cost of $250,000 for infrastructure, $25,000 for land improvements, $50,000 for buildings and building improvements, and $5,000 for equipment and vehicles. The Village has elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets acquired in fiscal years ending after June 30, 1980, or that were significantly reconstructed or improved during that multi-year period. Infrastructure is reported in buildings and improvements. The accounting and reporting treatment applied to the capital assets associated with a fund is determined by the fund’s measurement focus. General capital assets are assets of the Village as a whole. When purchased, such assets are recorded as expenditures in the governmental funds and capitalized as assets in the government-wide statement of net position. General capital assets are carried at historical cost, except for intangible right‐to‐use lease assets, the measurement of which is discussed in note 7. Where cost cannot be determined from the available records, estimated historical cost has been used to record the estimated value of the assets. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. Capital assets of the Enterprise Fund are capitalized in the fund. The valuation basis for Enterprise Fund capital assets is the same as those used for General capital assets. Additions, improvements, and other capital outlay that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Land and construction in progress are not depreciated. The other tangible and intangible property, plant, equipment, lease assets, and infrastructure are depreciated/amortized using the straight‐line method over the following estimated useful lives: Buildings, improvements and infrastructure 5-30 years Golf course improvements 5-30 years Machinery and Equipment 3-15 years Vehicles 3-20 years 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Net Position or Fund Balance (Continued) Leases Lease contracts that provide the Village with control of a non-financial asset, such as land, buildings, or equipment, for a period of time in excess of twelve months are reported as an intangible right to use lease asset with a related lease liability. The lease liability is recorded at the present value of future lease payments, including fixed payments, variable payments based on an index or fixed rate and reasonably certain residual guarantees. The intangible right to use d asset is recorded for the same amount as the related lease liability plus any prepayments and initial direct costs to place the asset in service. Lease assets are amortized over the shorter of the useful life of the asset or the lease term. The lease liability is reduced for lease payments made, less the interest portion of the lease payment. Lease contracts that provide an external entity with control of the Village’s non-financial asset, such as land, buildings, or equipment, for a period of time in excess of twelve months are reported as a lease receivable with a related lease deferred inflow of resources. The lease receivable is recorded at the present value of future lease payments expected to be received during the lease term, reduced by any provision for estimated uncollectible amounts. The lease deferred inflow of resources is recorded for the same amount as the related lease receivable less any lease incentives. Lease deferred inflow of resources are amortized over the lease term. The lease receivable is reduced for lease payments made, less the interest portion of the lease payment. Deferred Outflows and Inflows of Resources The statement of net position includes a separate section for deferred outflows of resources. This represents the usage of net assets applicable to future periods and will not be recognized as expenditures until the future period to which it applies. The Village reports deferred pension items in connection with its two Retirement Systems. These deferred pension charges are either (a) recognized in the subsequent period as a reduction of the net pension liability (which includes pension contributions made after the measurement date) or (b) amortized in a systematic and rational method as pension expense in future periods. The Village also reports deferred OPEB items in connection to Other Post-Employment Benefits, which are amortized in a systemic and rational method and recognized as an expense in future periods. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Net Position or Fund Balance (Continued) Deferred Outflows and Inflows of Resources (Continued) The statement of net position also includes a separate section, listed below total liabilities, for deferred inflows of resources. This represents the acquisition of net assets applicable to future periods and will not be recognized as revenue until the future period to which it applies. The Village currently has four types of deferred inflows. The first is local business tax revenues received prior to the period for which the taxes are levied, these are recognized as income in the period for which they are levied. The second is deferred pension items in connection with its two Retirement Systems. The third is deferred OPEB items in connection to Other Post-Employment Benefits. The fourth are the deferred lease revenues receivable. These items are amortized in a systemic and rational method and recognized as a reduction of expense in future periods. Unearned Revenue The Village reports unearned revenue on its statements of net position and governmental funds balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition. In subsequent periods, when revenue recognition criteria are met the unearned revenue is removed and revenue is recognized. Compensated Absences The Village’s employees are granted compensated absence pay for vacation and sick leave in varying amounts based on length of service. Unused compensated absences are payable upon separation from service. Vacation is accrued as a liability when the employee earns benefits. This means that the employee has rendered services that give rise to a vacation liability, and it is probable that the Village will compensate the employee in some manner, e.g., in cash or paid time- off, now or upon termination or retirement. The Village uses the vesting method in accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for employees who are eligible to receive termination payments upon separation. Compensated absences are accrued when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in the governmental funds only if the amounts have matured, for example, as a result of employee resignations or retirements. For the governmental funds, compensated absences are liquidated by the General Fund. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Net Position or Fund Balance (Continued) Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Net Position Fund Net Position in the government-wide statement of net position and the proprietary fund is displayed in three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Invested in capital assets, net of related debt consists of capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire, construct, or improve those assets. Restricted net position is reported when there are legal limitations imposed on their use by Village legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net position consists of all net position that does not meet the definition of either of the other two components. Fund Balance In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the Village is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is reported under the following categories: • Nonspendable fund balance represents amounts that are not in spendable form or are legally or contractually required to be maintained intact. • Restricted fund balance represents amounts that can be spent only for specific purposes stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Assets, Liabilities, and Net Position or Fund Balance (Continued) Fund Balance (Continued) • Committed fund balance represents amounts that can be used only for the specific purposes pursuant to constraints imposed by Village Commission by the adoption of an ordinance, the Village’s highest level of decision making authority. Those committed amounts cannot be used for any other purpose unless the Village removes or changes the specified use by the adoption of an ordinance. • Assigned fund balance includes spendable fund balance amounts that are intended to be used for specific purposes, as expressed by the Village Commission or Village Manager, in accordance with the Villages fund balance policy, that are neither considered restricted nor committed. The Small Business Grants is a program the Village Council approved to provide matching grants of up to $7,500 for improvements to small business properties. The Neighborhood Enhancement Team was established to address properties in the Village needing support. • Unassigned fund balance is the residual fund balance classification for the general fund. It is also used to report negative fund balances in other governmental funds. When both restricted and unrestricted resources are available for use, it is the Village’s policy to use restricted resources first, then unrestricted resources as they are needed. The Village will first use committed fund balance, then assigned fund balance, and then unassigned fund balance when expenditures are incurred for purposes for which any of the unrestricted fund balance classifications could be used. Use of Estimates The financial statements and related disclosures are prepared in conformity with accounting principles generally accepted in the United States. Management is required to make estimates and assumptions that affect the reported amounts of assets, deferred inflows and outflows, and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and revenue and expenses during the period reported. These estimates include the collectability of accounts receivable, the use and recoverability of inventory, the useful lives and impairment of tangible assets, and the realization of net pension assets, among others. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Actual results could differ from those estimates. NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Data Formal budgetary integration is employed as a management control device during the year for the General Fund and the Enterprise Fund. The only governmental fund with a legally adopted annual budget is the General Fund. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 37 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) A. Budgetary Data (Continued) This budget is adopted on a basis consistent with generally accepted accounting principles. Except for budgeting capital expenditures and not budgeting for depreciation, the annual appropriated budgets for the Enterprise Funds are adopted on a basis consistent with generally accepted accounting principles. For budgeting purposes, current year encumbrances are not treated as expenditures. The procedures for establishing budgetary data are as follows: • In July of each year, the Village Manager submits a proposed operating budget to the Council for the next fiscal year commencing the following October 1st. The proposed budget includes expenditures and the means of financing them. • During the months of July, August and September, the Council holds public meetings to obtain taxpayer comments. • Upon completion of the public hearings and prior to October 1st, a final operating budget is legally enacted through the passage of an ordinance. Estimated beginning fund balances are considered in the budgetary process. • Any change to the total fund expenses must be approved by the Village Council. • Appropriations along with encumbrances lapse on September 30th. Budgeted amounts are as originally adopted, or as amended by appropriate action. During the year, several supplementary appropriations were necessary. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g. purchase orders or contracts) outstanding at year end are reported assigned fund balance and do not constitute expenditures or liabilities because the commitments will be reappropriated and honored during the subsequent year. The General Fund had $385,081 the Infrastructure Surtax Fund had $102,407, and the Special Projects Fund had $1,105,493 in outstanding encumbrances at year- end. B. Property Taxes Under Florida law, the assessment of all properties and the collection of all county, municipal, and school board property taxes are consolidated in the offices of the County Property Appraiser and the County Tax Collector. All property is reassessed according to its fair market value on January 1 of each year and each assessment roll is submitted to the State Department of Revenue for review to determine if the assessment rolls meet all of the appropriate requirements of State law. The laws of the State regulating tax assessment are also designed to assure a consistent property valuation method statewide. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. The tax levy of the Village is established by the Council prior to October 1st of each year during the budget process. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 38 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) B. Property Taxes (Continued) The Palm Beach County Property Appraiser incorporates the Village’s millage into the total tax levy, which includes the County, County School Board, and special district tax requirements. The millage rate assessed by the Village for the year ended September 30, 2024, was 6.9000 ($6.9000 for each $1,000 of assessed valuation). Taxes may be paid less a 4% discount in November or at declining discounts each month through the month of February. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Delinquent taxes on real property bear interest at 18% per year. On or prior to June 1st following the tax year, certificates are offered for sale for all delinquent taxes on real property. After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer. The certificate holder may make application for a tax deed on any unredeemed tax certificate after a period of two years. The County holds unsold certificates. Delinquent taxes on personal property bear interest at 18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute of limitations. At September 30, 2024, unpaid delinquent taxes are not material and have not been recorded by the Village. NOTE 3 – DEPOSITS AND INVESTMENTS Deposits As of September 30, 2024, the carrying amount of the Village’s deposits (including fiduciary funds) was $5,199,358 and the bank balances totaled $5,359,094. In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or other banking institution eligible collateral. In the event of failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. The Village’s deposits at year end are considered insured for custodial credit risk purposes. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 39 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) A reconciliation of deposit and investments as shown on the statement of net position and statement of fiduciary net position for the Village is as follows: By Category: Deposits $ 5,199,358 Petty cash 4,056 Investments 91,295,122 Total deposits and investments $96,498,536 Presented in the statement of net position Governmental activities Cash and cash equivalents $20,346,049 Investments 10,473,428 Business-type activities Cash and cash equivalents 4,388,254 Total statements of net position 35,207,731 Presented in the statement of fiduciary net position Pension trust funds Cash and cash equivalents 1,708,535 Investments 59,226,158 Custodial funds Cash and cash equivalents 356,112 Total fiduciary funds 61,290,805 Total deposits and investments $96,498,536 Investments The Village categorizes its investments according to the fair value hierarchy established GASB Statement No. 72, Fair Value Measurement and Application. The hierarchy is based on valuation inputs used to measure the fair value of the asset as follows: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs to include quoted prices for similar assets in active and non-active markets; Level 3 inputs are significant unobservable inputs. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 40 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) The money market mutual funds consist of investments with financial institutions in open end, institutional, money market funds complying with Securities and Exchange Commission (SEC) Rule 2a7. Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair value to report net assets used to compute share prices if certain conditions are met. Those conditions include restrictions on the types of investments held, restrictions on the term-to- maturity of individual investments and the dollar-weighted average of the portfolio, requirements for portfolio diversification, and requirements for divestiture considerations in the event of security downgrades and defaults, and required actions if the fair value of the portfolio deviates from amortized cost by a specified amount. The Florida Public Assets for Liquidity Management (FL Palm) and Florida PRIME are external investment pools which meet the requirements with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, which allows reporting the investments at amortized cost. For both funds as of September 30, 2024, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100 percent of their account value. However, the Trustees of the funds can suspend the right of withdrawal or postpone the date of payment if the Trustees determine that there is an emergency that makes the sale of a Portfolio’s securities or determination of its net asset value not reasonably practical. Money market mutual funds, FL Palm and Florida Prime are exempt from the GASB 72 fair value hierarchy disclosures. Equity securities, exchange traded funds, and mutual funds classified in Level 1 of the fair value hierarchy are valued based on prices quoted in active markets for those securities. Debt securities classified in level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing values securities based on the securities relationship to benchmark quoted prices. The American Core Realty Fund, LLC is a diversified open-end commingled fund that invests primarily in high quality core income-producing office, industrial, retail, and multi-family properties. This fund is an alternative investment vehicle valued using the net asset value (NAV) provided by the investment manager of this fund. The NAV is based on the value of the underlying assets owned by the fund minus its liabilities and then divided by the number of shares or percentage of ownership outstanding. The NAV’s unit price is quoted on a private market that is not active. Investments valued at NAV are excluded from the fair value hierarchy because the valuation is not based on actual market inputs but rather is quantified using the fund’s reported NAV. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 41 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Redemptions from the fund may be made quarterly upon ten days’ notice. The units that are subject to a redemption notice may be redeemed in full or in installments on a pro-rata basis as funds become available for such redemptions and are subject to the availability of cash flow arising from investment transactions, sales and other fund operations occurring in the normal course of business. The fund is not required to liquidate or encumber assets or defer investments in order to satisfy redemption requests. The value of this alternative investment is not necessarily indicative of the amount that could be realized in a current transaction. The fair value may differ significantly from the value that would have been used had a ready market for the underlying fund existed, and the differences could be material. Future confirming events will also affect the estimates of fair value and the effect of such events on the estimated fair value could be material. The Florida Public Assets for Liquidity Management FL Palm-Term Series invests in highly rated securities including U.S. Treasury securities, U.S. government agency securities, deposits including certificates of deposit and commercial paper Securities are rated at least ‘A/F1’ by Fitch Ratings or equivalent. The term portfolio is a fixed-rate, fixed-term portfolio with a maximum term of one year. The maturity profile of the term portfolio is managed to meet preset redemptions of the portfolio’s participants. Upon investing in the program, a participant selects a planned maturity date on which the portfolio seeks to produce a share price of at least $1.00 for the participant that redeems on said date. Participants may request premature redemption, but the portfolio may charge significant penalties for any redemption prior to the agreed-upon redemption date and net asset value may be more or less than $1.00 per share. Redemptions will be made seven days after the request is received. The Village did not have any investments in this fund as of September 30, 2024, however during the fiscal year the Village had a $2,000,000 investment that matured on April 4th, 2024. This fund is an alternative investment vehicle valued using the net asset value (NAV) provided by the investment manager of this fund. The NAV is based on the value of the underlying assets owned by the fund minus its liabilities and then divided by the number of shares or percentage of ownership outstanding. The NAV’s unit price is quoted on a private market that is not active. Investments valued at NAV are excluded from the fair value hierarchy because the valuation is not based on actual market inputs but rather is quantified using the fund’s reported NAV. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 42 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) As of September 30, 2024, the Village held the following investments: Weighted Fair Value Measurement Average Maturity Fair Value Level 1 Level 2 Governmental Funds U.S. Government and Agency 2.21 Years $ 4,839,367 $ $ 4,839,367 MBS & ABS 2.80 Years 3,238,045 3,238,045 Municipal Bonds Domestic Corporate Bonds 2.20 Years 1,845,449 1,845,449 International Corporate Bonds 1.66 Years 531,584 531,584 Fiduciary Funds U.S. Government and Agency 8.67 Years 3,801,661 3,801,661 MBS & ABS 15.90 Years 5,139,541 5,139,541 Municipal Bonds 9.07 Years 933,741 933,741 Domestic Corporate Bonds 11.87 Years 4,532,000 4,532,000 International Corporate Bonds 7.83 Years 432,581 432,581 Domestic Common Equity Securities N/A 11,767,503 11,767,503 International Common Equity Securities N/A 3,888,630 3,888,630 Domestic Equity ETF N/A 3,305,326 3,305,326 International Equity ETF N/A 842,249 842,249 Fixed Income Mutual Funds N/A 2,225,802 2,225,802 Domestic Equity Mutual Funds N/A 15,417,737 15,417,737 International Equity Mutual Funds N/A 3,271,978 3,271,978 66,013,194 $ 40,719,225 $ 25,293,969 Investments Reported at NAV Fiduciary Funds American Core Realty Fund N/A 2,988,698 Investments Reported at Amortized Cost: Governmental Funds Money Market Mutual Funds N/A 18,983 Florida Prime 39 Days 8,410,262 FL Palm 35 Days 12,796,296 Fiduciary Funds Money Market Mutual Funds N/A 1,067,689 Total Investments $ 91,295,122 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 43 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not fulfill its obligations. The Village’s investment policies limit its investments to high quality investments to control credit risk. The table below outlines the Village’s credit ratings for investments that have credit ratings by S&P or Moody’s. S&P Moody’s Fair Investments: Rating Rating Value Governmental Funds U.S. Government and Agency AA+ AAA $ 4,839,367 MBS &ABS AAA to NR AAA to NR 3,238,045 Municipal Bonds Domestic Corporate Bonds AA+ to BB+ AA2 to A3 1,845,449 International Corporate Bonds AA to BBB+ AAA to A3 531,584 Florida Prime AAAm NR 8,410,262 FL Palm Portfolio AAAm NR 12,796,296 FL Palm Term NR* NR Fiduciary Funds U.S. Government and Agency AA+ to NR AAA to Aaa 3,801,661 MBS &ABS AAA to NR Aaa to NR 5,139,541 Municipal Bonds AAA to NR Aaa to A1 933,741 Domestic Corporate Bonds AAA to BBB- Aaa to Baa3 4,532,000 International Corporate Bonds A+ to BBB- Aaa to Baa3 432,581 * Rated AAAf by Fitch. Interest rate risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the time to maturity, the greater the exposure to interest rate risks. The Village limits its exposure to fair value losses resulting from rising interest rates by structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity; and investing operating funds primarily in short-term securities, money market mutual funds, or similar investment pools unless it is anticipated that long-term securities can be held to maturity without jeopardizing the liquidity requirements. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 44 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) The Retirement Funds do not have a formal investment policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. Custodial credit risk – Custodial credit risk is the risk that, in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Village’s investments are held by a third-party custodian, not in the name of the Village. Investments are held in book entry form at the Federal Reserve by Depository Trust Company (DTC) via the custodian. The custodian further segregates the Village’s investments in their trust accounting system. The investments in mutual funds and investment partnerships are considered unclassified pursuant to the custodial credit risk categories of GASB Statement No. 3, because they are not evidenced by securities that exist in physical or book-entry form. Concentrations of credit risk – Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an investment in a single user. The Village places no limit on the amount it may invest in any one issuer, except those in the Fire and Police Retirement Fund. Not more than five (5) percent of the Fund’s assets shall be invested in the common stock or capital stock of any one issuing company. Investing in Foreign Markets – Investing in foreign markets may involve special risks and considerations not typically associated with investing in companies in the United States of America. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and capital, and future adverse political, social, and economic developments. Moreover, securities of foreign governments may be less liquid, subject to delayed settlements, taxation on realized or unrealized gains, and their prices are more volatile than those of comparable securities in U.S. companies. Investing in Real Estate. – The Village is subject to the risks inherent in the ownership and operation of real estate. These risks include, among others, those normally associated with changes in the general economic climate, trends in the industry including creditworthiness of tenants, competition for tenants, changes in tax laws, interest rate levels, the availability of financing and potential liability under environmental and other laws. Authorized Investments –The Village has adopted an investment policy that applies to all the investment activity except the Employees’ Pension Funds, which are organized and administered separately, as listed below, or for funds related to the issuance of debt where there are other existing policies or indentures in effect for such funds. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 45 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Authorized Investments (Continued) The Village is authorized to invest its funds as follows: 1. Banks, Qualified Public Depositories with a collateral pledge level of twenty-five percent or fifty percent; 2. U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U. S. Government; 3. Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise, 4. Supra-Nationals, U.S. dollar denominated debt obligations of a multilateral organization of governments where the U.S. is a shareholder and voting member with a minimum credit quality rating of A-1/P-1, AA-/Aa3 or equivalent, 5. U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic or foreign corporation, financial institution, non-profit or other entity with a minimum credit quality rating of A-1/P-1, A-/A3 or equivalent, 6. Obligations, including both taxable and tax-exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory with a minimum credit quality rating of SP-1/MIG 1, A-/A3 or equivalent, 7. Mortgage-backed securities (MBS), backed by residential, multi-family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage obligations (CMOs) and REMICs, 8. Asset-backed securities (ABS) whose underlying collateral consists of loans, leases or receivables, including but not limited to auto loans /leases, credit card receivables, student loans, equipment loans /leases, or home-equity loans with a minimum credit quality rating of A-1/P-1, AAA/Aaa or equivalent, 9. U.S. dollar denominated commercial paper issued or guaranteed by a domestic or foreign corporation, company, financial institution, trust or other entity, including both unsecured debt and asset-backed programs with a minimum credit quality rating of A-1/P-1 or equivalent, 10. Shares in open-end and no-load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Rule 2a-7 with a minimum credit quality rating of AAAm/Aaa-mf or equivalent, 11. State, local government or privately-sponsored investment pools that are authorized pursuant to state law with a minimum credit quality rating of AAAm/Aaa-mf or equivalent. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 46 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Authorized Investments (Continued) The Village General Employees’ Retirement Fund is authorized to invest its funds as follows: 1. Fixed Income Securities • Treasury Bills and Money Market Funds • Commercial Paper and Banker's Acceptances • Certificates of Deposit • Obligations of Non-U.S. governments and their subdivisions, agencies and government-sponsored enterprises • Yankee Bonds • Obligations of international agencies or supranational entities • Obligations issued by the U.S. Government, its agencies and instrumentalities • Collateralized Mortgage-Backed Securities • Asset-Backed Securities • Corporate Debt Securities, including convertible securities and corporate commercial paper • Inflation-index bonds issued by corporations • Structured notes, including hybrid or "indexed" securities, event-linked bonds and loan participations • Delayed funding loans and revolving credit facilities • Bank certificates of deposit, fixed time deposits and bankers acceptances • Debt securities, issued by states or local governments and their agencies, authorities and other instrumentalities 2. Equity Securities • Common Stocks • Convertible Notes and Bonds • Convertible Preferred Stocks • American Depository Receipts (ADRs) of Non-U.S. Companies • Stocks of Non-U.S. Companies (Ordinary Shares) • Real Estate Investment Trusts (REITs) 3. Investment Types • • Open-Ended Mutual Funds • • Closed-end Mutual Funds • • Exchange Traded Funds • • Managed Separate Accounts • • Investment Partnerships • • Commingled Funds 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 47 NOTE 3 – DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Authorized Investments (Continued) Investments of the Fire and Police Retirement Fund can consist of the following: 1. Time or savings accounts of a national bank, a state bank insured by the Federal Deposit Insurance Corporation, or a savings, building and loan association insured by the Federal Deposit Insurance Corporation; 2. Obligations issued by the U.S. Government, or an agency or instrumentality of the U.S. Government, as well as obligations guaranteed by agencies or instrumentalities of the U.S. Government, including mortgage-related or asset-backed securities; 3. Equities: equities defined as common stocks, foreign stocks and issues convertible to equities, provided: a. Each holding shall be listed on a major U.S. exchange. b. Not more than 5% of the Fund's assets shall be invested in the common stock or capital stock of any one issuing company nor shall the aggregate investment in any one issuing company exceed 5% of the outstanding stock of the company. c. In accordance with the provisions of Chapter 2009-97, Laws of Florida, no more than twenty-five percent (25%) of any investment manager's Total Fund portfolio, at market value, shall be invested in foreign stocks or bonds. 4. Fixed income investments defined as preferred issues and fixed income securities provided: a. All issues ranked investment grade or higher by a nationally recognized rating agency. (Non-investment grade ratings are limited to no more than 10% of the Fixed Income portfolio.); 5. Money market funds, defined as fixed income securities having a maturity of less than one year provided all issues shall meet or exceed S&P’s A1 or Moody’s P1 credit rating; 6. Bonds issued by the State of Israel; 7. Purchases in commingled real estate funds. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 48 NOTE 4 – RECEIVABLES Receivables at September 30, 2024, were as follows: General Fund Country Club Nonmajor Enterprise Fund Utility franchise fees & taxes $ 413,085 $ $ Other accounts receivable 148,699 115,174 2,864 Total accounts receivable $ 561,784 $115,174 $ 2,864 NOTE 5 – CAPITAL ASSETS Capital Assets activity for the year ended September 30, 2024, was as follows: Primary Government Governmental Activities: Beginning Balance Additions Deletions Ending Balance Capital assets not being depreciated: Land $ 2,055,889 $ $ $ 2,055,889 Construction in progress 2,666,911 151,120 (197,644) 2,620,387 Capital assets being depreciated: Buildings 25,458,602 238,830 (22,216) 25,675,216 Improvements 13,611,612 1,980,560 (74,745) 15,517,427 Machinery and equipment 4,248,206 355,215 (132,083) 4,471,338 Vehicles 7,596,431 758,014 8,354,445 Total: 55,637,651 3,483,739 (426,688) 58,694,702 Less accumulated depreciation: Buildings (8,669,164) (715,126) 22,216 (9,362,074) Improvements (5,533,948) (888,025) 74,745 (6,347,228) Machinery and equipment (2,449,529) (464,908) 85,460 (2,828,977) Vehicles (3,678,534) (921,943) (4,600,477) Total accumulated depreciation (20,331,175) (2,990,002) 182,421 (23,138,756) Governmental activities capital assets, net $ 35,306,476 $ 493,737 $ (244,267) $ 35,555,946 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 49 NOTE 5 – CAPITAL ASSETS (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 106,591 Public safety 849,238 Public works 843,552 Community development 18,011 Leisure services 1,172,610 Total depreciation expense, governmental activities $ 2,990,002 Business-type activities: Beginning Balance Additions Deletions Ending Balance Capital assets not being depreciated: Land $ 1,051,311 $ $ $ 1,051,311 Construction in progress 108,734 91,313 (8,782) 191,265 Capital assets being depreciated: Buildings 1,142,411 7,916 1,150,327 Improvements 11,725,687 1,273,926 (151,378) 12,848,235 Machinery and equipment 550,117 56,789 (12,572) 594,334 Vehicles 22,607 22,607 Intangible Right to Use Asset - Vehicles 485,659 122,748 608,407 Total: 15,086,526 1,552,692 (172,732) 16,466,486 Less accumulated depreciation/amortization: Buildings (265,132) (40,424) (305,556) Improvements (7,628,262) (812,752) 151,378 (8,289,636) Machinery and equipment (260,836) (87,257) 12,572 (335,521) Vehicles (10,639) (5,319) (15,958) Intangible Right to Use Asset - Vehicles (283,301) (162,279) (445,580) Total accumulated depreciation/amortization (8,448,170) (1,108,031) 163,950 (9,392,251) Business-type activities capital assets, net $ 6,638,356 $ 444,661 $ (8,782) $ 7,074,235 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 50 NOTE 5 – CAPITAL ASSETS (Continued) Depreciation expense of $910,768 and $34,984 was charged to the Country Club and Stormwater Utility Funds respectively. Amortization expense of $162,279 was charged to the Country Club Fund. The General Fund is currently maintaining the Country Club building which is also capitalized in the Governmental Activities. The Village believes this building serves the community as a whole in addition to supporting the golf course activities. Once the 2006 promissory note of the country club enterprise fund is paid, rental payments for the use of the building will be started. NOTE 6 – LONG TERM LIABILITIES Change in Long-Term Liabilities Long-term liability activity for the year ended September 30, 2024, was as follows: Beginning Balance Additions Reductions Ending Balance Amount Due Within One Year Governmental activities: Direct borrowings and direct placements Loans payable $ 9,980,000 $ $ (970,000) $ 9,010,000 $ 1,005,000 Contracts that transfer ownership 2,965,583 (526,211) 2,439,372 539,239 Total 12,945,583 (1,496,211) 11,449,372 1,544,239 OPEB (see Note 14) 603,623 (15,144) 588,479 Net pension liability (see Note 9) 10,875,309 (872,178) 10,003,131 Compensated absences payable 1,607,048 1,382,694 (1,299,227) 1,690,515 1,410,582 Total $ 26,031,563 $ 1,382,694 $(3,682,760) $ 23,731,497 $ 2,954,821 Governmental activities other postemployment benefit obligations, compensated absences and net pension liabilities are expected to be paid out of the general fund. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 51 NOTE 6 – LONG TERM LIABILITIES (Continued) Beginning Balance Additions Reductions Ending Balance Amount Due Within One Year Business-type activities: Direct borrowings and direct placements Loans payable $ 195,122 $ $ (195,122) $ $ Lease liability(see Note 7) 207,158 120,620 (161,434) 166,344 166,344 OPEB(see Note 14) 29,106 6,465 35,571 Compensated absences payable 78,795 66,133 (40,261) 104,667 58,571 Total $ 510,181 $ 193,218 $ (396,817) $ 306,582 $ 224,915 For fiscal year ended September 30, 2024 the Government Activities incurred interest expense of $369,135 and paid interest of $398,106 and the Country Club fund paid and incurred interest of $45,016. Loans Payable from Direct Borrowings and Direct Placements $4,893,673 Promissory Note The Village Council adopted Resolution No. 23-2006 authorizing the issuance of a note in the amount of $4,893,673 to finance certain capital expenditures relating to the municipal golf course and country club. The revenues of the Country Club are pledged to secure the loan. Principal and interest payments are due semi-annually in the amount of $199,079, with a final maturity date of April 1, 2024. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 52 NOTE 6 – LONG TERM LIABILITIES (Continued) $4,893,673 Promissory Notes (Continued) The interest rate on the loan is 4.11% and is subject to adjustment in the event of taxability of the interest on this note. As of September 30, 2024, the note was paid in full.. Non-Ad Valorem Revenue Notes, Series 2017 The Village Council adopted Resolution No. 2017-22 authorizing the issuance of Non-Ad Valorem Revenue Notes, Series 2017, in one or more Series in the aggregate Principal amount not to exceed $15,000,000 to finance the cost of constructing and equipping a new country club clubhouse. The Notes are secured by a covenant to budget and appropriate legally available non-ad valorem revenues of the Village. Series 2017A The Series 2017A is a tax-exempt issuance for $8,900,000 with an interest rate of 3.19%, which is subject to adjustment in the event of taxability of the interest on this note. Interest is payable on June 1 and December 1 of each year beginning December 1, 2017. Principal payments start June 1, 2025 with the final payment on June 1, 2032. This note may be prepaid in whole but not in part at any time after June 1, 2025, at a redemption price equal to 100% of the principal amount outstanding plus accrued interest through the redemption date. As of September 30, 2024, the principal amount outstanding was $8,900,000 and was for the purpose of governmental-type activities. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 53 NOTE 6 – LONG TERM LIABILITIES (Continued) Series 2017B The Series 2017B is a taxable issuance for $6,100,000 with an interest rate of 3.78%. Interest is payable on June 1 and December 1 of each year beginning December 1, 2017. Principal payments start June 1, 2018 with the final payment on June 1, 2025. This note may not be prepaid. As of September 30, 2024, the principal amount outstanding was $110,000 and was for the purpose of governmental-type activities. Annual debt service requirements to maturity for the Series 2017A and 2017B are as follows: Year Ending Principal Interest Total 2025 $ 1,005,000 $ 288,068 $ 1,293,068 2026 1,040,000 255,360 1,295,360 2027 1,070,000 222,184 1,292,184 2028 1,105,000 188,051 1,293,051 2029 1,140,000 152,801 1,292,801 2030 - 2032 3,650,000 235,263 3,885,263 $ 9,010,000 $ 1,341,727 $ 10,351,727 The loan agreements include a provision that upon the occurrence of any event of default, the notes shall bear interest at the Default Rate so long as the event of default shall be continuing. The Default rate for the Series 2017A is 6% and the rate for the Series 2017B is 7%. Governmental Activities - Contracts That Transfer Ownership The Village entered into contract agreements for the purpose of financing the purchase of vehicles. Principal and interest payments are due either quarterly or annually. As of September 30, 2024, the principal amounts outstanding were $2,439,372 and the net book value of the equipment was $2,612,244. Amortization is included with depreciation expense. The interest rates on the leases range from 1.74% to 7.25%. The lease agreements include a provision that upon the occurrence of any event of default, the lessor may retake possession of the equipment under lease. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 54 NOTE 6 – LONG TERM LIABILITIES (Continued) Governmental Activities - Contracts That Transfer Ownership (Continued) Annual debt service requirements to maturity are as follows: Year Ending Principal Interest Total 2025 $ 539,239 $ 60,344 $ 599,583 2026 477,540 47,015 524,555 2027 626,792 35,267 662,059 2028 253,097 17,907 271,004 2029 214,186 12,566 226,752 2030 - 2031 328,518 10,031 338,549 $ 2,439,372 $ 183,130 $ 2,622,502 NOTE 7 – LEASES Effective October 1, 2021, the Village implemented Governmental Accounting Standards Board Statement 87 (GASB 87), Leases. Right to Use Lease Huntington National Bank The Village has entered into a lease agreement with Huntington National Bank to lease eighty golf carts and three other vehicles for the Country Club Fund. The lease has a term of 36 months and is paid monthly from January 2023 to December 2024. The discount rate was 3% using the Village’s estimated incremental borrowing rate. In April 2024 the Village extended the lease for an additional 9 months to run thru September 30, 2025. Annual requirements to amortize long-term obligations and related interest as of September 30, 2024 are as follows: Year Ending Principal Interest Total 2025 $ 166,344 $ 2,716 $ 169,060 $ 166,344 $ 2,716 $ 169,060 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 55 NOTE 7 – LEASES (Continued) Lessor Leases – General Fund AT&T, Inc. The Village has entered into a lease agreement with AT&T which allows the use of the Village’s land for a transmission tower site. The initial term of the lease was for monthly payments over a 5-year period commencing on July 11, 2015, the agreement was subsequently amended for an additional 5-year period with the option to extend for 4 successive terms in 5 year increments with a 15% increase in monthly lease payments at every renewal. This extended the total term with renewals to June 11, 2045. The Village expects AT&T to exercise the renewal options. The discount rate was 3% using the Village’s estimated incremental borrowing rate. Sprint Corporation The Village has entered into a lease agreement with Sprint which allows the use of the Village’s land for a transmission tower site. The initial term of the lease was for monthly payments over a 5-year period commencing on December 1, 1999, with three 5-year renewals. The agreement was subsequently amended for an additional four 5-year renewals. The discount rate was 3% using the Village’s estimated incremental borrowing rate. This extended the total term with renewals to November 1, 2039. The Village expects Sprint to exercise the renewal options. The original agreement and subsequent amendment provided for annual increases in rent of 3% and a onetime increase of 10% in 2019. The discount rate was 3% using the Village’s estimated incremental borrowing rate. Verizon Communications, Inc. The Village has entered into a lease agreement with Verizon which allows the use of the Village’s land for a transmission tower site. The initial term of the lease was for monthly payments over a 5-year period commencing on December 20, 2001, with three 5-year renewals. In July 2020 the agreement was amended for and additional 5-year period with three 5 year renewals. This extended the total term with renewals to November 20, 2041. The Village expects Verizon to exercise the renewal options. The original agreement and subsequent amendment provided for annual increases in rent of 3%. The discount rate was 3% using the Village’s estimated incremental borrowing rate. The General Fund is reporting a lease receivable of $2,849,356 at September 30, 2024. For the fiscal year ended September 30, 2024, the General Fund reported lease revenue of $149,510 and interest revenue of $86,695 related to lease payments received. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 56 NOTE 7 – LEASES (Continued) Lessor Leases – General Fund (Continued) The General Fund’s amortization of lease payments receivable as of September 30, 2024, are as follows: Year Ending Principal Interest Total 2025 $ 81,420 $ 84,393 $ 165,813 2026 92,534 81,781 174,315 2027 99,135 78,914 178,049 2028 106,049 75,846 181,895 2029 113,291 72,565 185,856 2030 - 2034 721,352 303,414 1,024,766 2035 - 2039 1,010,692 174,687 1,185,379 2040 - 2044 568,730 42,759 611,489 2045 56,153 707 56,860 $ 2,849,356 $ 915,066 $ 3,764,422 Lessor Leases –Country Club Fund The Village was committed under a lease agreement as lessor of the food and beverage operations at the North Palm Beach Country Club. The Village is leasing the restaurant including indoor/outdoor bar, kitchen, snack bar, beverage and server station and designated storage areas as exclusive use premises together with non-exclusive rights to the use of the covered pavilion, covered front entry, pool deck, banquet room, event lawn, restrooms and other public areas in and around the Country Club to Farmer’s Table LLC (Lessee). The initial term of the lease is five years and the lease shall automatically renew for additional five year terms unless either party gives the other party written notice of its intent not to renew at least one hundred and eighty days prior to the end of the term. Since the lease is cancelable by either party, the renewal terms are not taken into account when calculating the lease receivable. During the initial term the base rent shall be $8,333 per month. Beginning on the first date of any renewal term, the rent shall increase by 3% over the base rent payable for the immediately preceding twelve-month period. In addition to the base rent, the Lessee shall pay to the Village an amount equal to five percent of lessee’s annual gross sales for Restaurant and Catering Services over Two Million Dollars. The lessee shall also pay 50% of the electric, water/ sewer, burglar alarm and natural gas of the premises and $12,000 toward the ad valorem property taxes assessed by the Palm Beach County Property Appraiser and Tax Collector as a result of its operations. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 57 NOTE 7 – LEASES (Continued) Lessor Leases –Country Club Fund (Continued) In April of 2024, Farmer’s Table LLC informed the Village they would not be renewing the lease for the optional 5 year extension. The Village and Farmer’s Table LLC agreed to terminate the lease as of September 15, 2024. For the fiscal year ended September 30, 2024, the Country Club reported lease revenue of $93,774 and interest revenue of $6,226. The Country Club Fund also received $90,71 in supplemental rent and $80,836 in utility and property tax reimbursements for the year ended September 30, 2024 under the terms of this lease agreement. Except for the interest revenue, the lease income is recorded in operating revenues as the Village believes restaurant operations are an integral part of running a Country Club. NOTE 8 – RISK MANAGEMENT The Village is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The Village currently reports all of its risk management activities in the General Fund. Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The Village is covered by Florida Statutes under the Doctrine of Sovereign Immunity which effectively limits the amount of liability of municipalities to individual claims of $200,000/$300,000 for all claims relating to the same incident. However, under certain circumstances, a plaintiff can seek to recover damages in excess of statutory limits by introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do not apply to claims filed in federal courts. There have been no significant reductions in insurance coverage in the prior year. No settlements exceeded insurance coverage for the past three years. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 58 NOTE 9 – EMPLOYEE RETIREMENT PLANS The Village maintains the following two separate single employer defined benefit plans: Village of North Palm Beach Fire and Police Retirement Fund (F&P), covering firefighters and police officers, and Village of North Palm Beach General Employees Retirement Fund (GERF), covering substantially all other full-time Village employees. Both plans are reported as pension trust funds and included as part of the Village’s reporting entity. The Police and Fire Fund issued separate stand-alone financial statements for the year ended September 30, 2024, the report may be obtained from the Village Clerk, at the Village of North Palm Beach, 501 U.S. Highway 1, North Palm Beach, Florida 33408. The General Employees Plan does not issue separate financial statements. Each plan has its own board that acts as plan administrator and trustee: The Fire and Police Retirement Fund Board of Trustees consists of five members (5); four (4) of whom were elected by a majority of the members of the plan. Two (2) of the elected members are certified firefighters of the Village and two (2) are certified police officers of the Village. The fifth member of the board is a legal resident of the Village and is appointed by the Village council. The General Employees Retirement Board consists of five members (5); two (2) of whom were employees elected by a majority of the members of the plan, two (2) of the members are a legal resident of the Village and appointed by the Village council, the two (2) council appointed members of the Board shall appoint a member of the general public who has never been employed by the Village to serve as the fifth member of the Board. Each plan’s assets may only be used for the payment of benefits to the members and beneficiaries of the plan in accordance with the terms of each plan document. The costs of administering each plan are financed in the appropriate pension trust fund. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All Retirement Plans Basis of Accounting. The retirement plans are reported on the accrual basis of accounting. The plans’ fiduciary net position have been determined on the same basis used by the pension plans. Plan member and state contributions are recognized as revenues in the period that the contributions are due. Employer contributions to each plan are recognized when due and the employer has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Method Used to Value Investments. Investments are reported at fair value and are managed by third party money managers. Investments Concentrations. There were no investments representing concentrations of 5% or more of net plan assets in investments that are not issued or guaranteed by the U.S. government. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 59 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) PLAN DESCRIPTION, INVESTMENT AND CONTRIBUTION INFORMATION The following schedule is provided for general information purposes only and is derived from the respective actuarial reports and Village information for the two retirement plans. Plan participants should refer to the appropriate source documents for more complete information on the plans. General Employees’ Fire and Police Plan Description: Authority Village Ordinance Village Ordinance/State Asset Valuation: Reporting Fair Value Fair Value Legal Reserves None None Long-Term Receivable None None Internal/Participant Loans None None Membership of each plan consisted of the following at October 1, 2023: GERF F&P Inactive Plan Members or Beneficiaries currently receiving benefits 48 34 Inactive Plan Members entitled to but not yet receiving benefits 31 23 Active Plan Members 19 52 Total 98 109 General Employees' Retirement System Plan Description. The plan is established under Code of Ordinances for the Village of North Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No. 2010-07. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code. The Plan provides retirement benefits as well as death benefits. All full time general employees who are not sworn police officers or firefighters shall become members of the system on October 1st following completion of 12 months of employment as a condition of employment. For those employees retired before February 1, 1982, those employees hired after September 30, 2000, or those employees hired before October 1, 2000, who elect to contribute an extra 2%, a 3% Cost of Living increase is paid annually from the Plan. Authority to establish and amend the benefit provisions of the plan rests with the Village Council. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 60 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) General Employees' Retirement System (Continued) All benefits vest based on the following years of credited service: Years of Credited Service Vested % Under 5 0% 5 or 6 50% 7 or 8 75% 9 or more 100% Employees become eligible for normal retirement benefits after attaining the age of 60 and completing nine years of credited service, or attaining the age of 65 (depending on employee contribution rate). The normal retirement benefit consists of a life annuity, options available, (subject to cost of living increases not to exceed 3% a year), of either 2%, 2.25%, or 2.5% (depending on employee contribution rate) of Average Monthly Earnings (AME) times credited service up to 20 years plus 1% of AME times credited service over 20 years. Early retirement benefits can be received at age 55. The benefit is determined as for normal retirement and payable at normal retirement date or payable immediately after reduction by 5% for each year by which the benefit commencement date precedes the normal retirement date. If an active member dies, his beneficiary receives a refund of member contributions without interest. For a member who is age 55 and has at least five years of service but who dies before commencement of retirement benefits, a monthly benefit is payable to the designated beneficiary; the benefit is calculated as though the member had retired on his date of death and payable according to the option elected by the employee. For an active member who has at least five years of credited service and dies prior to reaching normal retirement date, a benefit equal to his vested accrued benefit will be paid to his beneficiary for ten years. If an employee terminates his employment, he is entitled to the following: - With less than five years of credited service, a refund of member contributions without interest and no other benefit. - With five or more years of credited service, a refund of member contributions, the vested accrued benefit payable at normal retirement date or at any time after age 55 is attained, with the benefit being subject to the same reduction as for early retirement benefits. The vesting schedule is listed above. "Average Monthly Earnings" is the average during the 5 years within the last 10 years of employment which produces the highest average. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 61 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) General Employees' Retirement System (Continued) "Credited Service" consists of the total number of years and fractional parts of years of actual service with the Village and shall apply to an employee whose employment is terminated with the Village and who recommences fulltime employment within two years from the date of termination. Asset Allocation. The plan’s adopted asset allocation policy as of September 30, 2024, is as follows: Asset Class Target Allocation Domestic equity 42% International equity 18 Domestic bonds 40 Total 100% Rate of Return. For the year ended September 30, 2024, the annual money-weighted rate of return on Pension Plan investments, net of pension plan investment expense, was 21.61 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Contributions. General employees may contribute 6%, 4%, 2% or 0% of earnings as elected by the employee, with the retirement benefit received being based on the amount contributed. The Village is required to contribute the amount necessary to fund the Plan properly according to the Plan’s actuary. Contribution requirements of plan members and the Village are established and may be amended by the Village Council. Fire and Police Retirement System Plan Description. The plan is established under Code of Ordinances for the Village of North Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No. 2019-11. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida Statutes and the Internal Revenue Code. The plan provides retirement benefits as well as death and disability benefits. All benefits vest after ten years of credited service. All fulltime police officers or firefighters are eligible for membership immediately upon hire. Previously, members were not eligible until October 1st following completion of 12 months of employment. Cost of living adjustments (COLA) are provided annually each October 1, to reflect changes in CPI (subject to maximum increases or decreases of 3% per year). Authority to establish and amend the benefit provisions of the plan rests with the Village Council. Employees become eligible for normal retirement benefits after attaining the age of 55, or the date on which the member attains age 52 and 25 credited years of service. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 62 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) Fire and Police Retirement System (Continued) The normal retirement benefit consists of ten years certain and life thereafter, with other options available, (subject to cost of living adjustments not to exceed 3% a year), of 2.75% of AME times the years of credited services starting 10/1/18; for years prior to 10/1/18 the percentage is 2.5%; with a maximum benefit of 75% of AME. For police officers the benefit accrual rate will increase to 3.0% effective 10/1/22. The maximum benefit will increase to 80% effective 10/1/22. Members are eligible for non-service connected disability, after ten years of credited service and a total and permanent disability. For service connected disability, a total and permanent disability with no service requirement, the disability benefit consists of a ten-year certain and life annuity that can be provided by the single-sum value of the member’s accrued pension benefit, but is at least 42% of AME for service connected disability and at least 25% of AME for non-service connected disability. See the description of the General Employees’ Retirement System for the remainder of the benefits, except that early retirement and termination benefits for vested members can be received at age 50 and the Deferred Retirement Option Plan (DROP) as describe below. The Plan contains a DROP whereupon the member could retire from the pension plan but continue employment with the Village for an additional maximum period of up to five years. The retirement benefit is immediately calculated and the monthly benefit is allocated to the DROP account. The actual rate of investment return is credited to the account, but no less than 0.00% or more than 6.4%. Once a participant elects this option, he is no longer eligible for disability or pre-retirement benefits. The Plan’s guidelines for the DROP are designed to adhere to IRS regulations. At September 30, 2024, there was $1,455,588 in the DROP, this amount is included in both the Total Pension Liability and the Plan Fiduciary Net Position. Additional information about the DROP can be obtained from the ordinance. Asset Allocation. The plan’s adopted asset allocation policy as of September 30, 2024, is as follows: Asset Class Target Allocation Domestic equity 55% International equity 10 Domestic bonds 25 Real estate 10 Total 100% Rate of Return. For the year ended September 30, 2024, the annual money-weighted rate of return on Pension Plan investments, net of pension plan investment expense, was 22.98 percent. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 63 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) Fire and Police Retirement System (Continued) Contributions. Firefighter members are required to contribute 7.00% of their basic compensation to the plan. This will be increased to 7.5% effective 10/1/22, 8% effective 10/1/23 and 8.5% effective 10/1/24. Police Officer members are required to contribute 7.00% of their basic compensation to the plan. This will be increased to 8.5% effective 10/1/22 and 10% effective 10/1/23. Members enrolled in the DROP shall contribute 4% of earnings (3% allocated to the DROP account and 1% remaining in Plan assets). The Village is required to contribute the remaining amount to fund the plan using the Entry Age Actuarial Cost Method. Contribution requirements of plan members and the Village are established and may be amended by the Village Council. The Florida Constitution requires local governments to make the actuarially determined contribution. The Florida Division of Retirement reviews and approves each local government’s actuarial report prior to its being approved for use for funding purposes. Additionally, the State collects locally authorized insurance premium surcharges which can only be distributed after the State has ascertained that the local government has met its actuarial funding requirement for the then most recently completed fiscal year. Contributions to the Plan from the State of Florida totaled $472,893 during the fiscal year ended September 30, 2024. All Retirement Plans Net Pension Liability. The components of net pension liability of the Village on September 30, 2024, were as follows: General Employees Fire and Police Total pension liability $ 20,360,144 $ 47,390,686 Plan fiduciary net position (20,471,048) (42,843,020) Village's net pension liability(asset) $ (110,904) $ 4,547,666 Plan fiduciary net position as a percentage of total pension liability 100.54% 90.40% 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 64 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) All Retirement Plans (Continued) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2023 updated to September 30, 2024 using the following actuarial assumptions applied to the September 30, 2024 measurement period. General Employees Fire and Police Inflation 2.40% 2.50% Salary increases Service based Service based Investment rate of return 6.25% 7.35% Mortality The same version of Pub-2010 Headcount weighted tables as used the FRS in their 7/1/22 Actuarial Valuation PubS.H-2010 for Employees, set forward one year The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included the pension plan’s target asset allocation as of September 30, 2024, are summarized in the following table: Asset Class Long-Term Expected Real Rate of Return General Employees Fire and Police Domestic equity 8.67% 7.50% International equity 9.13% 8.50% Domestic bonds 4.24% 2.50% Real estate N/A 4.50% 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 65 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) All Retirement Plans (Continued) Discount Rate. The discount rate used to measure the total pension liability was 6.25 percent for the General Employees Retirement Fund and 7.35 percent for the Fire and Police Retirement Fund. The projection of cash flows used to determine the discount rates assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liabilities of the Village, calculated using the discount rates above, as well as what the Village’s net pension liabilities would be if it were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current rate. General Employees' Retirement System Current Discount 1% Decrease Rate 1% Increase 5.25% 6.25% 7.25% Village's net pension liability $ 2,343,049 $ (110,904) $ (2,164,528) Fire and Police Retirement System Current Discount 1% Decrease Rate 1% Increase 6.35% 7.35% 8.35% Village's net pension liability $ 11,173,603 $ 4,547,666 $ (912,348) All Retirement Plans The Village’s total pension liability, plan fiduciary net position, net pension liability, pension related deferred outflows and inflows, and pension expense for the fiscal year ended September 30, 2024, are reported using a measurement date of September 30, 2023. The above information on the plan required by GASB 67 are reported using a measurement date of September 30, 2024. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 66 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) All Retirement Plans (Continued) Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as of October 1, 2022 updated to September 30, 2023 using the following actuarial assumptions applied to the September 30, 2023, measurement period. General Employees Fire and Police Inflation 2.40% 2.50% Salary increases Service based Service based Investment rate of return 6.25% 7.45% Mortality The same version of Pub-2010 Headcount weighted tables as used the FRS in their 7/1/21 Actuarial Valuation PubS.H-2010 for Employees, set forward one year The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included the pension plan’s target asset allocation as of September 30, 2023, are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return General Employees Fire and Police General Employees Fire and Police Domestic equity 42% 55% 9.75% 7.50% International equity 18 10 10.24% 8.50% Domestic bonds 40 25 5.12% 2.50% Real estate N/A 10 N/A 4.50% Total 100% 100% 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 67 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) All Retirement Plans (Continued) Discount Rate. The discount rate used to measure the total pension liability was 6.25 percent for the General Employees Retirement Fund and 7.45 percent for the Fire and Police Retirement Fund. The projection of cash flows used to determine the discount rates assumed that plan member contributions will be made at the current contribution rate and that sponsor contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the pension plans’ fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. General Employees' Retirement System Changes in Net Pension Liability Using a measurement date of September 30, 2023, the components of the net pension liability reported by the Village at September 30, 2024, were as follows: Total Fiduciary Net Pension Net Pension Description Liability (a) Position (b) Liability(asset) (a)-(b) Balances at September 30, 2022 $ 19,191,970 $ 16,267,288 $ 2,924,682 Changes due to: Service cost 176,461 176,461 Interest 1,180,659 1,180,659 Difference between expected and actual experience 195,149 195,149 Changes of Assumptions Employer contributions 179,038 (179,038) Employee contributions 72,032 (72,032) Benefit payments and refunds (947,568) (947,568) Net investment income 2,051,214 (2,051,214) Refunds (8,212) (8,212) Administrative expenses (61,276) 61,276 Total changes 596,489 1,285,228 (688,739) Balances at September 30, 2023 $ 19,788,459 $ 17,552,516 $ 2,235,943 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 68 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) General Employees' Retirement System (Continued) Plan fiduciary net position as a percentage of total pension liability 88.70% Sensitivity of the Net Pension Liability to Changes in the Discount Rate Current Discount 1% Decrease Rate 1% Increase 5.25% 6.25% 7.25% Village's net pension liability $ 4,658,569 $ 2,235,943 $ 211,808 Pension expense and deferred outflows and inflows of resources For the fiscal year ended September 30, 2024, the Village recognized pension expense of $861,467. In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources: Deferred Deferred Outflows Inflows Description of Resources of Resources Net difference between projected and actual earnings on plan investments $ 1,212,444 $ Differences between expected and actual experience 45,034 Assumption changes Village plan contributions subsequent to the measurement date 238,581 Total $ 1,496,059 $ 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 69 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) General Employees' Retirement System (Continued) Pension expense and deferred outflows and inflows of resources (Continued) The deferred outflows of resources totaling $238,581 resulting from Village contributions to the plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the plan will be recognized in pension expense as follows: Year ended September 30: Amount 2025 $ 341,295 2026 369,829 2027 758,044 2028 (211,690) 2029 Thereafter $ 1,257,478 Fire and Police Retirement System Sensitivity of the Net Pension Liability to Changes in the Discount Rate Current Discount 1% Decrease Rate 1% Increase 6.45% 7.45% 8.45% Village's net pension liability $ 13,677,591 $ 7,767,188 $ 2,901,520 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 70 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) Fire and Police Retirement System (Continued) Changes in Net Pension Liability Using a measurement date of September 30, 2023, the components of the net pension liability reported by the Village at September 30, 2024, were as follows: Total Fiduciary Net Pension Net Pension Description Liability (a) Position (b) Liability(asset) (a)-(b) Balances at September 30, 2022 $ 38,026,356 $ 30,075,729 $ 7,950,627 Changes due to: Service cost 1,329,402 1,329,402 Interest 2,887,764 2,887,764 Differences between expected and actual experience Change of benefit terms 701,705 701,705 Change of assumptions Employer contributions 910,146 (910,146) Employer contributions-state 472,893 (472,893) Employee contributions 533,218 (533,218) Employee contributions buy back 2,422 2,422 Benefit payments and refunds (1,187,659) (1,187,659) Net investment income 3,289,833 (3,289,833) Administrative expenses (103,780) 103,780 Total changes 3,733,634 3,917,073 (183,439) Balances at September 30, 2023 $ 41,759,990 $ 33,992,802 $ 7,767,188 Plan fiduciary net position as a percentage of total pension liability 81.40% 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 71 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) Fire and Police Retirement System (Continued) Pension expense and deferred outflows and inflows of resources For the fiscal year ended September 30, 2024, the Village recognized pension expense of $2,308,730. In addition, the Village reported deferred outflows of resources and deferred inflows of resources related to the Plan from the following sources: Deferred Deferred Outflows Inflows Description of Resources of Resources Net difference between projected and actual earnings on plan investments $ 2,457,092 $ Differences between expected and actual experience 90,453 Change of assumptions 410,852 626,704 Village plan contributions subsequent to the measurement date 1,504,176 Total $ 4,372,120 $ 717,157 The deferred outflows of resources totaling $1,504,176 resulting from Village contributions to the plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the plan will be recognized in pension expense as follows: Year ended September 30: Amount 2025 $ 549,762 2026 522,755 2027 1,158,750 2028 (340,927) 2029 160,203 Thereafter 100,244 $ 2,150,787 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 72 NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued) All Retirement Plans Summarized information The Village’s total pension liability, plan fiduciary net position, net pension liability, pension related deferred outflows and inflows, and pension expense for the fiscal year ended September 30, 2024, using a measurement date of September 30, 2023, are as follows: General Employees Fire and Police Total Total pension liability $ 19,788,459 $ 41,759,990 $ 61,548,449 Plan fiduciary net position 17,552,516 33,992,802 51,545,318 Net pension liability(asset) 2,235,943 7,767,188 10,003,131 Deferred outflows of resources 1,496,059 4,372,120 5,868,179 Deferred inflows of resources 717,157 717,157 Pension expense 861,467 2,308,730 3,170,197 Accounts Payable - - - NOTE 10 – ON-BEHALF PAYMENTS The state makes a contribution to the Fire and Police Officers’ Retirement System from the firefighters’ and police officers’ Insurance Premium Tax. For the fiscal year ended September 30, 2024, $551,246 was recorded as revenues and expenditures in the On-Behalf Pension Contribution Special Revenue Fund relating to on-behalf payments received from the state. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 73 NOTE 11 – PENSION PLAN FINANCIAL INFORMATION Generally accepted accounting principles (GAAP) requires that financial statements for individual pension plans be presented in the notes to the financial statements of the primary government if separate GAAP financial reports have not been issued. The General Employees’ pension fund does not have a separate GAAP report issued, and the financial information as of September 30, 2024, is presented below. STATEMENT OF FIDUCIARY NET POSITION General Employees’ Pension Assets Cash and cash equivalents $ 388,978 Investments: Domestic equity securities 2,931,696 International equity securities 1,822,405 U.S. Government and agencies 2,329,932 Municipal bonds 669,470 Domestic corporate bonds 2,358,673 International corporate bonds 284,934 Domestic equity income ETF 3,305,326 International equity ETF 804,185 Fixed income mutual funds 2,225,802 Domestic equity mutual funds 2,149,217 International equity mutual funds 1,153,211 Accrued dividends and interest 66,978 Accounts receivable 10,895 Prepaids 3,568 Total assets 20,505,270 Liabilities Accounts payable 34,222 Total liabilities 34,222 Net position Held in trust for pension benefits and other purposes $ 20,471,048 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 74 NOTE 11 – PENSION PLAN FINANCIAL INFORMATION (Continued) STATEMENT OF CHANGES IN FIDUCIARY NET POSITION General Employees’ Pension Additions Contributions Employer $ 238,581 Plan members 67,323 Total contributions 305,904 Investment earnings Dividends and interest 472,978 Change in the fair value of investments 3,314,444 Less investment expense 77,292 Total investment earnings 3,710,130 Total additions 4,016,034 Deductions Administration 78,078 Benefits 1,019,424 Total deductions 1,097,502 Change in net position 2,918,532 Net position - beginning 17,552,516 Net position - ending $ 20,471,048 NOTE 12 – DEFINED CONTRIBUTION PLAN Effective October 1, 2006, all employees of the Village may participate in one of four Money Purchase Plans that are qualified Defined Contribution Plans adopted under the provisions of Internal Revenue Code Section 401(a). The four pension plans include Village Manger, Directors, General Employees, and Municipal Employees. The defined contribution plans are administered by International City/County Management Association and Retirement Corporation (ICMA-RC). The ICMA-RC is a nonprofit corporation organized and existing under the laws of the State of Delaware. Contribution requirements of employees’ and the Village are established and may be amended by the Village Council. The vesting period for each defined contribution plan is five years, with a vesting of zero percent in the first year, and a vesting of twenty-five percent for each year thereafter. While the plans will not provide for retroactive funding, the vesting period shall run from each employee’s original date of hire. If an employee terminates before becoming fully vested, forfeited amounts will be used to reduce future Village contributions. No loans are permitted by the plan. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 75 NOTE 12 – DEFINED CONTRIBUTION PLAN (Continued) The normal retirement age for the plan shall be age sixty. There is no waiting period for participation in the plan. The minimum age for participation is eighteen. The Village contributes 15% of participant earnings for the plan year. Earnings include regular and bonus compensation, but do not include overtime or commissions. Employee contributions are voluntary, pre-tax contributions that are not matched by the Village. Employees may contribute 3%, 5%, 10%, or 15% of earnings to the plan. Contributions are remitted to the trusts every payroll period. The Village’s activities do not meet the criteria for inclusion in the fiduciary funds of a government. Plan detail for participating employees at September 30, 2024, is listed below: Village Manager Directors General Employees Municipal Employees Employee contributions $ 9,728 $ 76,849 $ 114,209 $ 70,532 Village pension expense 29,184 161,294 314,115 230,038 Forfeitures - 74,757 15,252 62,446 Payable as of fiscal year end - - - - NOTE 13 – DEFERRED COMPENSATION PLAN ASSETS Employees of the Village may participate in a deferred compensation plan adopted under the provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with Respect to Service for State and Local Governments). The deferred compensation plan is available to all employees of the Village. Under the plan, employees may elect to defer a portion of their salaries and avoid paying taxes on the deferred portion until the withdrawal date. The deferred compensation amount is not available for withdrawal by employees until termination, retirement, death, or unforeseeable emergency. A third party administers the deferred compensation plan. The Village’s activities do not meet the criteria for inclusion in the fiduciary funds of a government. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 76 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS General Information about the OPEB Plan Effective October 1, 2016, the Village implemented Governmental Accounting Standards Board Statement 75 (GASB 75), Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Retirees of the Village pay an amount equal to the actual premium for health insurance charged by the carrier. The premium charged includes an implied subsidy, as the amount charged for all participants (active employee or retiree) is the same, regardless of age. Under GASB 75, an implied subsidy is considered other post-employment benefits (OPEB). The following describes the Village’s OPEB Provisions: Plan Description The Village provides a single employer defined benefit health care plan to all of its employees and the plan is administered by the Village. The plan has no assets and does not issue a separate financial report. Benefits Provided The plan allows its employees and their beneficiaries, to continue to obtain health and dental benefits upon retirement. The normal retirement age for police and firefighters is 55 or 52, depending on the option selected by the employee and the normal retirement age for all other Village employees is either age 60 or 65, depending on the option selected by the employee. The benefits of the plan are in accordance with Florida Statutes, which are the legal authority for the plan. The plan has no assets and does not issue a separate financial report. Employees Covered by Benefit Terms At September 30, 2024, the date of the last actuarial valuation, the following employees were covered by benefit terms: Participants Active employees 134 Inactive employees currently receiving benefits 3 Inactive employees entitled to but not receiving benefits - Total 137 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 77 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS (Continued) Contribution Requirements: The Village does not make direct contributions to the plan on behalf of retirees. Retirees and their beneficiaries pay the same group health rates as active employees. However, the Village’s actuaries, in their actuarial valuation, calculate an offset to the cost of these benefits as an employer contribution, based upon an implicit rate subsidy. This offset equals the total annual age-adjusted costs paid by the Village, or its active employees, for coverage of the retirees and their dependents net of the retiree’s own payments for the year. Total OPEB Liability The Village’s total OPEB liability of $624,050 was measured as of September 30, 2024 and was determined by the actuarial valuation as September 30, 2024. Actuarial Assumptions and Methods The total OPEB liability was determined using the following actuarial assumptions and other methods: Valuation Date: September 30, 2024 Measurement Date: September 30, 2024 Discount Rate: 3.81% per annum Source Fidelity 20-Year Municipal GO AA Index Salary Increase Rate: Service based between 2.4% to 8% per annum Health Care Trend Rate: An initial rate of 6.00% decreasing to an ultimate rate of 4.00%. Inflation Rate: 2.50% Marriage Rate/Participation: The assumed number of eligible dependents is based on the current portions of single and family contracts in the census provided. The spousal participation assumed at retirement is 75%. Actuarial Cost Method: Entry Age Normal based on level percentage of projected salary. Amortization Method: Experience/Assumptions gains and losses are amortized over the closed period of 9 years starting on October 1, 2017, equal to the average remaining service of active and inactive plan members (who have no future service). 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 78 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS (Continued) Actuarial Assumptions and Methods (Continued) Plan Participation Percentage: The participation percentage is the assumed rate of future eligible retirees who elect to continue health coverage at retirement. It is assumed that 20% of employees elect coverage. This assumes that a one-time irrevocable election to participate is made at retirement. Mortality Rates: The PUB‐2010 Generational tables used are projected by Scale MP‐2018. Adjustments to the referenced table are based on the results of a statewide experience study from 2013-2018. Discount Rate The Village does not have a dedicated Trust to pay retiree healthcare benefits. Per GASB 75, the discount rate is a yield or index rate for 20-year, tax-exempt municipal bonds. As a result, the calculation used a rate of 3.61%. Changes in the Total OPEB Liability Total OPEB Liability Balance at September 30, 2023 $ 632,729 Changes for the Year: Service Cost 44,641 Interest Cost 30,430 Difference between expected and actual experience 621 Changes of Assumptions and Other Inputs (44,103) Benefit Payments (40,268) Net Change in Total OPEB Liability (8,679) Balance at September 30, 2024 $ 624,050 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 79 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS (Continued) Changes in Assumptions The discount rate was 4.63% at 10/1/23 and 3.81% at 9/30/24. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher then the current discount rate: 1.0% Decrease Discount Rate 1.0% Increase (2.81%) (3.81%) (4.81%) Total OPEB Liability $ 675,039 $ 624,050 $ 577,222 Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rates The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using healthcare cost trends that are 1-percentage- point lower or 1-percentage-point higher (then the current healthcare cost trend rates: Healthcare cost 1.0% Decrease Trend Rates 1.0% Increase Total OPEB Liability $ 559,043 $ 624,050 $ 700,291 OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2024, the Village recognized OPEB revenue of $321,574. At September 30, 2024, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes of Assumptions/Inputs $ 27,979 $ 705,384 Differences Between Expected and Actual Experience 236,992 Total $ 27,979 $ 942,376 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 80 NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS (Continued) OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB (Continued) Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in OPEB expense as follows: Fiscal Year Ending: September 30, 2025 $ (396,640) September 30, 2026 (142,659) September 30, 2027 (152,409) September 30, 2028 (130,577) September 30, 2029 (43,575) Thereafter (48,537) $ (914,397) NOTE 15 – JOINTLY GOVERNED ORGANIZATION The Village, through an interlocal agreement with certain other municipalities and Palm Beach County, created the Seacoast Utility Authority (“Seacoast”) which provides water and sewer service to the citizens of each of the participating municipalities and a portion of Palm Beach County. Seacoast’s governing board consists of one member from each participating entity. Seacoast is an Independent Authority organized under the laws of the State of Florida, and the Village has no participating equity ownership in Seacoast. The Village paid $301,168 to Seacoast during the fiscal year for water and sewer service. NOTE 16 –INTERFUND ACTIVITY Advances to/from other funds The advance from the General Fund to the Country Club Fund was to provide $1,700,000 for the renovation of the Golf Course. The Country Club Fund will start paying back the advance $1,700,000 in the fiscal year ending September 30, 2025, which is after the Bank of America loan is paid off. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 81 NOTE 16 –INTERFUND ACTIVITY (Continued) Transfers Interfund transfers during the year ended September 30, 2024, are as follows: The $700,194 from the General Fund to the Capital Projects Fund were to fund capital projects according to the original budget and subsequent budget amendments. The $450,000 from the General Fund to the Country Club Enterprise Fund were to help fund the operations of the Tennis and Pool activities. The $725,000 from the General Fund was to the Special Capital Projects Fund was to fund capital projects. NOTE 17 – CONTRACTS, COMMITMENTS AND CONTINGENCIES Contract Commitments On September 17, 2014, the Village entered into an agreement with the City of Palm Beach Gardens whereby the City of Palm Beach Gardens will provide the Village public safety dispatch services. The term of the agreement was for two years beginning on October 1, 2014, and extending through September 30, 2016. In 2016 the agreement was renewed for an additional five years extending through September 30, 2021. On August 11, 2021 a new five year agreement was approved expiring September 30, 2026. The fee for each year under the contract will be based upon the budget of the North County Dispatch (NCDC) center prorated to each contracting municipality based on that municipalities cost share. If at the end any contract year a budget shortfall exists, each contracting municipality shall pay its share of the shortfall. Conversely, if at the end of any contract year a budget surplus exists, such surplus shall represent a committed fund balance to be utilized specifically for NCDC budgetary purposes. The Village’s estimated cost for fiscal year ending September 30, 2024 is $529,904. On August 11, 2021, a second interlocal agreement was signed for five years expiring on September 30, 2026. Subsequent to September 30, 2024, the Villages entered into contracts for $446,975 for the replacement of the Anchorage Park boat ramp, $499,091 for the renovation of the Dry Storage Facility and two dog parks located at Anchorage Park, and $1,065,000 for the purchase of property for the construction of a new Public Works facility. Contingencies The Village is involved in various litigations and claims arising in the course of operations. It is the opinion of legal counsel that the likelihood of unfavorable outcome and the amounts of potential losses cannot be reasonably determined for all claims at this time. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 82 NOTE 18 – PRIOR PERIOD ADJUSTMENT In prior years the Village has not recorded accrued payroll as neither the liability nor the related change in expense/expenditure was considered material. In the current year the Village considers the liability material, and a prior period adjustment was recorded to decrease the beginning net position/fund balance for the prior unrecorded accrued liabilities. In the Governmental Activities and General Fund the beginning net position/fund balance were decreased by $522,621 and the Country Club Fund net position was decreased by $64,594. The adjustment had no affect on the current year change in net position/fund balance and the prior year change in net position/fund balance decreased by $33,767 in the Governmental Activities and General Fund and by $11,019 in the Country Club Fund. NOTE 19 – NEW ACCOUNTING STANDARDS Implementation of Governmental Accounting Standards Board Statements The Village implemented the following Governmental Accounting Standards Board (GASB) Statements during the fiscal year ended September 30, 2024: GASB Statement No. 100, Accounting Changes and Error Corrections. The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. Recently Issued Accounting Pronouncements Below is a brief description and effective date of new accounting standards that could have a significant impact on the Village. In June 2022, the GASB issued Statement No. 101, Compensated Absences. The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave. The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences. The requirements of this Statement are effective for fiscal years ending September 30, 2025, and all reporting periods thereafter. 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Basic Financial Statements September 30, 2024 83 NOTE 19 – NEW ACCOUNTING STANDARDS (Continued) Recently Issued Accounting Pronouncements (Continued) In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The requirements of this Statement are effective for fiscal years ending September 30, 2025, and all reporting periods thereafter. In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This statement will improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. This Statement is effective for the fiscal year ending September 30, 2026. In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will improve consistency and comparability between governments, Management is currently evaluating the impact of the adoption of these statements on the Village’s financial statements. 3/8/25 Final Draft REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A 3/8/25 Final Draft PENSION AND OTHER POSTEMPLOYMENT BENEFIT TREND INFORMATION 3/8/25 Final Draft THIS PAGE INTENTIONALLY LEFT BLANK 3/8/25 Final Draft 2018 2019 2020 2021 2022 Total OPEB liability Service cost 274,702$ 113,906$ 119,601$ 72,316$ 77,845$ Interest cost 124,097 63,447 61,990 20,766 20,623 Change in benefit terms 655 Difference between expected and actual experience (1,354,390) (102,114) Changes of assumptions and other inputs (677,494)78,007 (960,663)14,544 (239,114) Benefit payments (134,593)(56,645)(59,477)(28,872)(37,440) Net change in total OPEB liability (1,767,678) 198,715 (837,894) 78,754 (280,200) Total OPEB liability, beginning of year 3,210,652 1,442,974 1,641,689 803,795 882,549 Total OPEB liability, end of year 1,442,974$ 1,641,689$ 803,795$ 882,549$ 602,349$ Covered employee payroll 10,148,392$ 10,566,520$ 9,347,911$ 11,834,425$ 8,871,817$ Net OPEB liability as a percentage of covered employee payroll 14.22%15.54%8.60%7.46%6.79% Changes of Assumptions Discount rate (3.36% at 10/1/17)4.15%3.58%2.41%2.19%4.40% Coverage acceptance rate 40.00%40.00%25.00%25.00%20.00% 2023 2024 Total OPEB liability Service cost 44,764$ 44,641$ Interest cost 27,792 30,430 Change in benefit terms Difference between expected and actual experience 621 Changes of assumptions and other inputs (11,200)(44,103) Benefit payments (30,976)(40,268) Net change in total OPEB liability 30,380 (8,679) Total OPEB liability, beginning of year 602,349 632,729 Total OPEB liability, end of year 632,729$ 624,050$ Covered employee payroll 13,609,837$ 10,778,149$ Net OPEB liability as a percentage of covered employee payroll 4.65%5.79% Changes of Assumptions Discount rate 4.63%3.81% Coverage acceptance rate 20.00%20.00% There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan. NOTE: The Village implemented GASB Statement 75 in 2018; information is presented for those years in which information is available. THE VILLAGE OF NORTH PALM BEACH, FLORIDA Required Supplemental Information September 30, 2024 Schedule of Changes in Total OPEB Liability Last Ten Fiscal Years 84 3/8/25 Final Draft Reporting Year 2016 2017 2018 2019 2020 Measurement Year 2015 2016 2017 2018 2019 Total pension liability: Service cost 317,676$ 357,344$ 275,504$ 250,072$ 251,678$ Interest 1,048,746 1,106,085 1,116,142 1,162,025 1,201,578 Differences between Expected and Actual Experience (329,040) (129,381) (246,222) (307,977) (625,948) Assumption changes 928,295 23,053 Benefit payments, including refunds of employee contributions (293,890) (331,174) (454,571) (472,027) (567,472) Net change in total pension liability 743,492 1,931,169 713,906 632,093 259,836 Total pension liability - beginning 13,812,555 14,556,047 16,487,216 17,201,122 17,833,215 Total pension liability - ending (a)14,556,047$ 16,487,216$ 17,201,122$ 17,833,215$ 18,093,051$ Plan fiduciary net position Contributions - employer 464,189$ 458,615$ 527,617$ 451,560$ 358,152$ Contributions - Employees 125,738 126,947 110,417 101,858 97,522 Net investment income (96,116) 1,161,530 1,487,313 1,190,603 721,786 Benefit payments, including refunds of employee contributions (293,890) (331,174) (454,571) (472,027) (567,472) Administrative expenses (20,655) (24,794) (22,361) (21,489) (38,690) Net change in plan fiduciary net position 179,266 1,391,124 1,648,415 1,250,505 571,298 Plan fiduciary net position - beginning 11,929,879 12,109,145 13,500,269 15,148,684 16,399,189 Plan fiduciary net position - ending (b)12,109,145$ 13,500,269$ 15,148,684$ 16,399,189$ 16,970,487$ Net pension liability(asset) (a) - (b)2,446,902$ 2,986,947$ 2,052,438$ 1,434,026$ 1,122,564$ Plan fiduciary net position as a percentage of the total pension liability 83.19%81.88%88.07%91.96%93.80% Covered payroll 2,375,585$ 2,376,069$ 2,072,121$ 1,966,566$ 1,834,767$ Net pension liability as a percentage of covered payroll 103.00%125.71%99.05%72.92%61.18% Changes of Assumptions (By Measurement Year) For the 2016 fiscal year the discount rate, investment rate of return, inflation rate, salary scale, and the withdrawal and mortality rates changed. For the 2017 fiscal year the mortality rate changed. Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Fiscal Years THE VILLAGE OF NORTH PALM BEACH, FLORIDA Required Supplemental Information September 30, 2024 General Employees Retirement Fund 85 3/8/25 Final Draft 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 216,125$ 211,929$ 164,218$ 176,461$ 195,518$ 1,211,026 1,232,553 1,157,772 1,180,659 1,217,142 (343,736) (29,429) (62,808) 195,149 178,449 (283,447) (736,101) (784,490) (854,693) (955,780) (1,019,424) 347,314 347,116 404,489 596,489 571,685 18,093,051 18,440,365 18,787,481 19,191,970 19,788,459 18,440,365$ 18,787,481$ 19,191,970$ 19,788,459$ 20,360,144$ 232,738$ 197,770$ 165,928$ 179,038$ 238,581$ 85,829 76,595 68,012 72,032 67,323 1,497,222 3,135,663 (3,586,330) 2,051,214 3,710,130 (736,101) (784,490) (854,693) (955,780) (1,019,424) (60,096) (74,760) (66,486) (61,276) (78,078) 1,019,592 2,550,778 (4,273,569) 1,285,228 2,918,532 16,970,487 17,990,079 20,540,857 16,267,288 17,552,516 17,990,079$ 20,540,857$ 16,267,288$ 17,552,516$ 20,471,048$ 450,286$ (1,753,376)$ 2,924,682$ 2,235,943$ (110,904)$ 97.56%109.33%84.76%88.70%100.54% 1,612,777$ 1,472,661$ 1,316,077$ 1,407,674$ 1,289,484$ 27.92%-119.06%222.23%158.84%-8.60% For the 2021 fiscal year the morality tables, assumed rates of retirement, withdrawal rate, salary increases, and cost of living adjustments were all updated and the investment return assumption was reduce from 6.75% to 6.25%. For the 2022 fiscal year the investment rate of return changed from 6.75% to 6.25% and inflation changed from 2.5% to 2.4%. 86 3/8/25 Final Draft Reporting Year 2016 2017 2017 2019 2020 Measurement Year 2015 2016 2017 2018 2019 Total pension liability: Service cost 810,654$ 833,909$ 851,932$ 897,280$ 1,031,048$ Interest 1,555,518 1,738,069 1,779,947 1,922,314 2,236,125 Changes in excess state money 67,645 79,505 83,231 77,905 (600,965) Changes of benefit terms 1,682 1,660,762 Differences between Expected and Actual Experience 483,189 (31,422) (197,249) 187,041 (138,741) Changes of assumptions (1,223,780) 198,680 174,565 205,896 Contributions - Buy Back 65,446 7,609 7,902 4,746 6,698 Benefit payments, including refunds of employee contributions (611,678) (653,993) (680,673) (751,317) (793,277) Net change in total pension liability 2,372,456 749,897 2,043,770 2,512,534 3,607,546 Total pension liability - beginning 19,480,362 21,852,818 22,602,715 24,646,485 27,159,019 Total pension liability - ending (a)21,852,818$ 22,602,715$ 24,646,485$ 27,159,019$ 30,766,565$ Plan fiduciary net position Contributions - employer 975,733$ 969,836$ 945,880$ 822,951$ 918,263$ Contributions - State 298,340 310,200 309,138 308,600 328,826 Contributions - DROP Contributions Contributions - Employees 151,450 190,989 211,474 224,469 239,271 Contributions - Buy Back 65,446 7,609 7,902 4,746 6,698 Net investment income 111,884 1,475,735 2,198,298 1,637,891 787,045 Benefit payments, including refunds of employee contributions (600,579) (653,993) (680,673) (751,317) (793,277) Administrative expenses (76,457) (76,967) (76,293) (78,399) (83,413) Net change in plan fiduciary net position 925,817 2,223,409 2,915,726 2,168,941 1,403,413 Plan fiduciary net position - beginning 16,790,847 17,716,664 19,940,073 22,855,799 25,024,740 Plan fiduciary net position - ending (b)17,716,664$ 19,940,073$ 22,855,799$ 25,024,740$ 26,428,153$ Net pension liability(asset) (a) - (b)4,136,154$ 2,662,642$ 1,790,686$ 2,134,279$ 4,338,412$ Plan fiduciary net position as a percentage of the total pension liability 81.07%88.22%92.73%92.14%85.90% Covered payroll 4,518,020$ 4,601,075$ 4,772,092$ 5,088,564$ 5,451,987$ Net pension liability as a percentage of covered payroll 91.55%57.87%37.52%41.94%79.57% Changes of Assumptions (By Measurement Year) For the 2014 fiscal year the investment rate of return changed. For the 2016 fiscal year the salary scale, normal retirement rates, the investment rate of return, discount rate, withdrawal and mortality rates, and the actuarial cost method all changed. For the 2017 fiscal year the mortality rates and the investment rate of return changed. For the 2018 fiscal year the investment rate of return changed. For the 2019 fiscal year the benefit accrual rated changed prospectively from 2.5% to 2.75%. For the 2019 fiscal year the investment rate of return changed from 7.75% to 7.70%. Schedule of Changes in Net Pension Liability and Related Ratios Last Ten Fiscal Years THE VILLAGE OF NORTH PALM BEACH, FLORIDA Required Supplemental Information September 30, 2024 Fire and Police Retirement Fund 87 3/8/25 Final Draft 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 1,102,333$ 1,026,423$ 1,186,982$ 1,329,402$ 1,420,700$ 2,423,113 2,574,829 2,639,997 2,887,764 3,178,311 617,530 319,251 (1,956,361) 419,712 701,705 1,475,388 (981,457) 464,035 593,871 3,498 3,498 3,498 2,422 (799,809) (841,165) (946,116) (1,187,659) (1,037,574) 2,066,929 1,271,259 3,921,603 3,733,634 5,630,696 30,766,565 32,833,494 34,104,753 38,026,356 41,759,990 32,833,494$ 34,104,753$ 38,026,356$ 41,759,990$ 47,390,686$ 863,762$ 754,690$ 662,686$ 910,146$ 952,930$ 339,482 350,777 414,511 472,893 551,246 25,263 329,454 383,069 416,272 533,218 593,982 3,498 3,498 3,498 2,422 1,228,865 5,607,649 (4,870,319) 3,289,833 7,867,499 (799,808) (841,221) (946,116) (1,187,659) (1,037,574) (78,868) (93,646) (84,157) (103,780) (103,128) 1,886,385 6,164,816 (4,403,625) 3,917,073 8,850,218 26,428,153 28,314,538 34,479,354 30,075,729 33,992,802 28,314,538$ 34,479,354$ 30,075,729$ 33,992,802$ 42,843,020$ 4,518,956$ (374,601)$ 7,950,627$ 7,767,188$ 4,547,666$ 86.24%101.10%79.09%81.40%90.40% 5,134,942$ 5,169,073$ 5,627,173$ 6,344,818$ 6,465,485$ 88.00%-7.25%141.29%122.42%70.34% For the 2020 fiscal year the mortality rates changed. For the 2021 fiscal year the investment return assumption was reduced from 7.7% to 7.45% along with changes to the salary increase rates, normal retirement rates and the assumed rates of withdrawal. For the 2022 fiscal year the maximum benefit changed from 75% to 80% of average monthly earnings, member contribution rates increased, and the benefit accrual rate changed from 2.75% to 3.00% for police officers. For the 2025 fiscal year the investment rate of return changed from 7.45% to 7.35%. 88 3/8/25 Final Draft Schedule of Contributions Fiscal Year Actuarially Contribution Actual Contribution Ending Determined Actual Deficiency Covered as a Percentage of September 30 Contribution Contribution (Excess)Payroll Covered Payroll General Employees Retirement Fund 2015 464,189$ 464,189$ $ 2,375,585$ 19.54% 2016 449,552 458,615 (9,063) 2,376,069 19.30% 2017 519,821 527,617 (7,796) 2,072,121 25.46% 2018 449,477 451,560 (2,083) 1,966,566 22.96% 2019 355,507 358,152 (2,645) 1,834,767 19.52% 2020 231,604 232,738 (1,134) 1,612,777 14.43% 2021 194,733 197,770 (3,037) 1,472,661 13.43% 2022 162,168 165,928 (3,760) 1,316,077 12.61% 2023 173,176 178,999 (5,823) 1,407,674 12.72% 2024 234,590 238,581 (3,991) 1,289,484 18.50% Fire and Police Retirement Fund 2015 1,205,408$ 1,206,428$ (1,020)$ 4,518,020$ 26.70% 2016 1,193,059 1,200,531 (7,472) 4,601,075 26.09% 2017 1,175,844 1,171,787 4,057 4,772,092 24.55% 2018 1,038,576 1,053,646 (15,070) 5,088,564 20.71% 2019 1,135,649 1,247,089 (111,440) 5,451,987 22.87% 2020 1,190,793 1,203,271 (12,478) 5,134,942 23.43% 2021 1,233,858 1,105,440 128,418 5,169,073 21.39% 2022 1,074,227 1,077,197 (2,970) *5,627,173 19.14% 2023 1,317,009 1,383,039 (66,030) 6,334,818 21.83% 2024 1,460,553 1,504,176 (43,623) 6,465,485 23.26% *Prior year excess contributions were used. Schedule of Investment Returns Fiscal Year Ending General Fire and Police September 30 Employees Employees 2015 -0.39%0.66% 2016 9.72%8.25% 2017 11.32%10.92% 2018 8.26%7.14% 2019 4.63%3.13% 2020 9.28%4.62% 2021 17.85%19.69% 2022 -17.51%-14.09% 2023 13.04%10.92% 2024 21.61%22.98% Annual money weighted rate of return net of investment expense THE VILLAGE OF NORTH PALM BEACH, FLORIDA Required Supplemental Information September 30, 2024 Last Ten Fiscal Years 89 3/8/25 Final Draft Methods and assumptions used in calculations of determined contributions. The actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year in which contributions are reported. General Employees Police and Fire Retirement Fund Retirement Fund Valuation Date October 1, 2022 October 1, 2022 Actuarial Cost Method Entry Age Normal Entry Age Normal Amortization Method Level Dollar, closed Level Percentage of Compensation Remaining Amortization Period 29 28 Asset Valuation Method Five year smoothed market Five year smoothed market Inflation 2.40%2.50% Salary increases Service based Service based Between 2.4% and 5.9%Between 4% and 8% Cost of living adjustments 2.15% for those retired before 2.50% 2/1/82 or who contribute an extra 2%. Investment Rate of Return 6.25%7.45% Mortality The same version of Pub- 2010 Headcount wighted tables as used by the FRS in their 7/1/21 Actuarial Valuation PubS.H-2010 for Employees, set forward one year THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Schedule of Contributions September 30, 2024 90 3/8/25 Final Draft GENERAL FUND 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual General Fund For the Year Ended September 30, 2024 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues Taxes 26,785,506$ 26,785,506$ 27,417,278$ 631,772$ Licenses and permits 1,790,500 1,790,500 2,171,127 380,627 Intergovernmental 1,869,505 1,869,505 1,983,694 114,189 Charges for services 1,903,848 1,903,848 2,423,911 520,063 Fines and forfeitures 121,850 121,850 241,367 119,517 Investment 548,724 548,724 1,730,635 1,181,911 Miscellaneous 289,355 289,355 Total revenues 33,019,933 33,019,933 36,257,367 3,237,434 Expenditures Current General government 4,168,355 4,176,355 4,203,715 (27,360) Public safety 13,469,559 13,484,059 13,491,811 (7,752) Public works 6,153,832 6,184,953 5,395,273 789,680 Community development and planning 2,022,854 2,119,986 1,993,644 126,342 Leisure services 3,435,405 3,724,611 3,462,501 262,110 Capital outlay 419,400 (419,400) Debt service Principal payments 1,496,211 1,496,211 1,496,211 Interest paid on debt 398,523 398,523 398,106 417 Total expenditures 31,144,739 31,584,698 30,860,661 724,037 Excess of revenues over expenditures 1,875,194 1,435,235 5,396,706 3,961,471 Other financing sources (uses) Appropriated fund balance 439,959 (439,959) Insurance recoveries 972,932 972,932 Transfer out (1,875,194) (1,875,194) (1,875,194) Total other financing uses (1,875,194) (1,435,235) (902,262) 532,973 Net change in fund balances $ $ 4,494,444 4,494,444$ Fund Balances Beginning of year, as restated 17,789,748 End of year 22,284,192$ 91 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to the Budgetary Required Supplementary Information (RSI) General Fund Note 1 - Basis of Accounting Generally accepted accounting principles (GAAP) serve as the budgetary basis of accounting. Note 2 - Legal Level of Control The legal level of budgetary control is at the fund level. September 30, 2024 92 3/8/25 Final Draft OTHER SUPPLEMENTARY INFORMATION 3/8/25 Final Draft GENERAL FUND 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Departmental Expenditures - Budget and Actual General Fund For the Year Ended September 30, 2024 Variance with Final Budget Original Final Positive Percent Budget Budget Actual (Negative)Variance Village Council Personnel services 75,692$ 75,692$ 46,408$ 29,284$ 38.69 Operating expenses 142,650 143,750 166,614 (22,864) -15.91 Total Village Council 218,342 219,442 213,022 6,420 2.93 Village Manager Personnel services 655,740 655,740 664,878 (9,138) -1.39 Operating expenses 119,300 119,300 146,315 (27,015) -22.64 Total Village Manager 775,040 775,040 811,193 (36,153) -4.66 Village Finance Personnel services 524,655 524,655 555,434 (30,779) -5.87 Operating expenses 74,600 74,600 80,185 (5,585) -7.49 Total Village Finance 599,255 599,255 635,619 (36,364) -6.07 Village Attorney Operating expenses 215,000 215,000 259,526 (44,526) -20.71 Village Clerk Personnel services 256,198 256,198 199,574 56,624 22.10 Operating expenses 79,785 79,785 63,115 16,670 20.89 Total Village Clerk 335,983 335,983 262,689 73,294 21.81 Information Technology Personnel services 657,917 657,917 598,764 59,153 8.99 Operating expenses 162,700 162,700 184,115 (21,415) -13.16 Total Information Technology 820,617 820,617 782,879 37,738 4.60 Human Resources Personnel services 351,587 351,587 317,253 34,334 9.77 Operating expenses 163,050 169,950 223,961 (54,011) -31.78 Total Human Resources 514,637 521,537 541,214 (19,677) -3.77 Police Personnel services 7,166,579 7,166,579 7,300,118 (133,539) -1.86 Operating expenses 1,492,650 1,507,150 1,338,062 169,088 11.22 Total Police 8,659,229 8,673,729 8,638,180 35,549 0.41 Fire Rescue Personnel services 4,152,010 4,152,010 4,302,813 (150,803) -3.63 Operating expenses 497,420 497,420 412,012 85,408 17.17 Total Fire Rescue 4,649,430 4,649,430 4,714,825 (65,395) -1.41 (Continued) 93 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Departmental Expenditures - Budget and Actual General Fund For the Year Ended September 30, 2024 Variance with Final Budget Original Final Positive Percent Budget Budget Actual (Negative)Variance (Continued) Public Works Administration Personnel services 552,980$ 552,980$ 577,955$ (24,975)$ -4.52 Operating expenses 99,800 111,050 141,980 (30,930) -27.85 Total Public Works 652,780 664,030 719,935 (55,905) -8.42 Sanitation Personnel services 1,593,893 1,593,893 1,484,967 108,926 6.83 Operating expenses 425,000 425,000 338,756 86,244 20.29 Total Sanitation 2,018,893 2,018,893 1,823,723 195,170 9.67 Facility Services Personnel services 378,978 378,978 362,219 16,759 4.42 Operating expenses 652,200 656,571 451,821 204,750 31.18 Total Facility Services 1,031,178 1,035,549 814,040 221,509 21.39 Street Maintenance Personnel services 284,268 284,268 247,533 36,735 12.92 Operating expenses 1,429,500 1,445,000 1,139,284 305,716 21.16 Total Street Maintenance 1,713,768 1,729,268 1,386,817 342,451 19.80 Vehicle Maintenance Personnel services 330,513 330,513 323,788 6,725 2.03 Operating expenses 406,700 406,700 326,970 79,730 19.60 Total Vehicle Maintenance 737,213 737,213 650,758 86,455 11.73 Planning and Engineering Personnel services 337,316 337,316 235,098 102,218 30.30 Operating expenses 318,350 398,947 390,894 8,053 2.02 Total Planning and Engineering 655,666 736,263 625,992 110,271 14.98 Building Personnel services 800,070 800,070 656,117 143,953 17.99 Operating expenses 299,890 316,425 491,227 (174,802) -55.24 Total Building 1,099,960 1,116,495 1,147,344 (30,849) -2.76 Code Enforcement Personnel services 236,703 236,703 174,939 61,764 26.09 Operating expenses 33,525 33,525 47,369 (13,844) -41.29 Total Code Enforcement 270,228 270,228 222,308 47,920 17.73 Recreation Personnel services 867,584 867,584 755,406 112,178 12.93 Operating expenses 1,213,742 1,494,837 1,500,126 (5,289) -0.35 Total Leisure Services-Recreation 2,081,326 2,362,421 2,255,532 106,889 4.52 (Continued) 94 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Departmental Expenditures - Budget and Actual General Fund For the Year Ended September 30, 2024 Variance with Final Budget Original Final Positive Percent Budget Budget Actual (Negative)Variance (Continued) Library Personnel services 855,253$ 855,253$ 809,712$ 45,541$ 5.32 Operating expenses 355,838 363,949 252,791 111,158 30.54 Total Library 1,211,091 1,219,202 1,062,503 156,699 12.85 Special Events Operating expenses 142,988 142,988 144,466 (1,478) -1.03 Total Special Events 142,988 142,988 144,466 (1,478) -1.03 Debt Service 1,894,734 1,894,734 1,894,317 417 0.02 Non-Departmental Operating expenses 847,381 847,381 834,379 13,002 1.53 847,381 847,381 834,379 13,002 1.53 Capital Outlay Police 207,389 (207,389) Facility Services 21,323 (21,323) Building 100,548 (100,548) Leisure Services-Recreation 90,140 (90,140) Total Capital Outlay 419,400 (419,400) Total expenditures 31,144,739$ 31,584,698$ 30,860,661$ 724,037$ 2.29% 95 3/8/25 Final Draft COMBINING FINANCIAL STATEMENTS 3/8/25 Final Draft NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Public Safety Fund Northlake Boulevard Fund Recreation Fund On-Behalf Pension Contributions Capital Projects Fund 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Combining Balance Sheet Nonmajor Governmental Funds Special Revenue Funds Public Northlake On-Behalf Capital Total Nonmajor Safety Boulevard Pension Projects Governmental Fund Fund Recreation Contributions Fund Funds Assets Cash and cash equivalents 757$ 1,987$ 193,458$ 100,305$ 2,989,504$ 3,286,011$ Total assets 757$ 1,987$ 193,458$ 100,305$ 2,989,504$ 3,286,011$ Liabilities Accounts payable $ $ $ 100,305$ $ 100,305$ Total liabilities 100,305 100,305 Fund balances Assigned 757 1,987 193,458 2,989,504 3,185,706 Total fund balances 757 1,987 193,458 2,989,504 3,185,706 Total liabilities, deferred inflows of resources, and fund balances 757$ 1,987$ 193,458$ 100,305$ 2,989,504$ 3,286,011$ September 30, 2024 96 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2024 Special Revenue Funds Public Northlake On-Behalf Capital Total Nonmajor Safety Boulevard Pension Projects Governmental Fund Fund Recreation Contributions Fund Funds Revenues Intergovernmental 21,203$ $ 300,000$ 551,246$ $ 872,449$ Total revenues 21,203 300,000 551,246 872,449 Expenditures Current Public safety 21,203 551,246 572,449 Capital outlay 22,185 179,048 201,233 Total expenditures 21,203 22,185 551,246 179,048 773,682 Excess (deficiency) of revenues over (under) expenditures 277,815 (179,048) 98,767 Other financing sources (uses) Transfers in 700,194 700,194 Net changes in fund balances 277,815 521,146 798,961 Fund balances - Beginning of year 757 1,987 (84,357) 2,468,358 2,386,745 Fund balances - End of year 757$ 1,987$ 193,458$ $ 2,989,504$ 3,185,706$ 97 3/8/25 Final Draft FIDUCIARY FUNDS Pension Trust Funds General Employees Pension Trust Fund Fire and Police Officers Pension Trust Fund 3/8/25 Final Draft THE VILLAGE OF NORTH PALM BEACH, FLORIDA Combining Statement of Net Position - Pension Trust Funds Fire and Total General Police Employee Employees Officers Retirement Pension Pension Funds Assets Cash and cash equivalents 388,978$ 1,319,557$ 1,708,535$ Investments: Domestic common equity securities 2,931,696 8,835,807 11,767,503 International common equity securities 1,822,405 2,066,225 3,888,630 U.S. Government and agencies 2,329,932 6,611,270 8,941,202 Municipal bonds 669,470 264,271 933,741 Domestic corporate bonds 2,358,673 2,173,327 4,532,000 International corporate bonds 284,934 147,647 432,581 Domestic equity exchange traded funds 3,305,326 3,305,326 International equity exchange traded funds 804,185 38,064 842,249 Fixed income mutual funds 2,225,802 2,225,802 Domestic equity mutual funds 2,149,217 13,268,520 15,417,737 International equity mutual funds 1,153,211 2,118,767 3,271,978 Real estate investment fund 2,988,698 2,988,698 Money market mutual funds 678,711 678,711 Accrued interest and dividends 66,978 51,562 118,540 Accounts receivable 10,895 100,305 111,200 Accounts receivable, broker-dealers 2,212,276 2,212,276 Prepaids 3,568 5,010 8,578 Total assets 20,505,270 42,880,017 63,385,287 Liabilities Accounts payable 34,222 36,997 71,219 Total liabilities 34,222 36,997 71,219 Net Position restricted for pensions 20,471,048$ 42,843,020$ 63,314,068$ September 30, 2024 98 3/8/25 Final Draft Fire and Total General Police Employee Employees Officers Retirement Pension Pension Funds Additions Contributions Employer 238,581$ 952,930$ 1,191,511$ Plan members 67,323 593,982 661,305 DROP contributions 25,263 25,263 State on-behalf payments 551,246 551,246 Total contributions 305,904 2,123,421 2,429,325 Investment earnings Dividends and interest 472,978 899,463 1,372,441 Change in fair value of investments 3,314,444 7,136,561 10,451,005 Total investment earnings 3,787,422 8,036,024 11,823,446 Less: investment expenses 77,292 168,525 245,817 Total investment earnings 3,710,130 7,867,499 11,577,629 Total additions 4,016,034 9,990,920 14,006,954 Deductions Administration 78,078 103,128 181,206 Lump sum DROP distributions 4,801 4,801 Benefits 1,019,424 1,032,773 2,052,197 Total deductions 1,097,502 1,140,702 2,238,204 Change in net position 2,918,532 8,850,218 11,768,750 Net position - beginning 17,552,516 33,992,802 51,545,318 Net position - ending 20,471,048$ 42,843,020$ 63,314,068$ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Pension Trust Funds Combining Statement of Changes in Fiduciary Net Position For the Year Ended September 30, 2024 99 3/8/25 Final Draft PROPRIETARY FUND (ENTERPRISE FUND) Country Club Fund 3/8/25 Final Draft Variance with Final Budget Original Final Positive Percent Budget Budget Actual (Negative)Variance Revenue Greens fee/cart rentals/membership fees 4,817,425$ 4,817,425$ 4,869,635$ 52,210$ 1.08 Golf shop revenues 739,500 739,500 762,474 22,974 3.11 Driving range revenues 525,000 525,000 600,505 75,505 14.38 Restaurant revenues 343,000 343,000 277,600 (65,400) -19.07 Tennis revenues 841,500 841,500 742,720 (98,780) -11.74 Pool revenues 265,000 265,000 212,843 (52,157) -19.68 Interest revenues 25,000 25,000 174,913 149,913 Miscellaneous 20,400 20,400 76,776 56,376 276.35 Operating transfers 450,000 450,000 450,000 Appropriated net position 1,402,432 (1,402,432) -100.00 Total revenues 8,026,825 9,429,257 8,167,466 (1,261,791) -13.38 Golf Maintenance Operating expenses 2,032,000 2,064,755 1,920,271 144,484 7.00 Capital outlay 875,000 1,060,768 583,990 476,778 Total Golf Maintenance 2,907,000 3,125,523 2,504,261 621,262 19.88 Clubhouse and Grounds Personnel services 87,791 87,791 104,892 (17,101) (19.48) Operating expenses 542,161 554,587 477,045 77,542 13.98 Total Clubhouse and Grounds 629,952 642,378 581,937 60,441 9.41 Golf Pro Shop and Range Personnel services 1,128,144 1,128,144 1,095,124 33,020 2.93 Operating expenses 884,500 884,500 967,100 (82,600) -9.34 Capital outlay 19,740 (19,740) Total Golf Pro Shop and Range 2,012,644 2,012,644 2,081,964 (69,320) -3.44 Food and Beverage Personnel services Operating expenses 22,000 350,001 350,990 (989) -0.28 Capital outlay Total Food and Beverage 22,000 350,001 350,990 (989) (0.28) Tennis Personnel services 722,890 722,890 526,254 196,636 Operating expenses 186,502 186,502 167,422 19,080 10.23 Capital outlay 8,000 849,082 703,372 145,710 Total Tennis 917,392 1,758,474 1,397,048 361,426 20.55 Pool Personnel services 224,951 224,951 156,422 68,529 Operating expenses 216,399 218,799 198,035 20,764 9.49 Capital outlay 90,000 90,000 6,995 83,005 Total Pool 531,350 533,750 361,452 172,298 32.28 (Continued) THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues and Departmental Expenses - Budget and Actual Country Club Fund - Budgetary Basis For the Year Ended September 30, 2024 100 3/8/25 Final Draft Variance with Final Budget Original Final Positive Percent Budget Budget Actual (Negative)Variance THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues and Departmental Expenses - Budget and Actual Country Club Fund - Budgetary Basis For the Year Ended September 30, 2024 (Continued) Administration Personnel services 359,163$ 359,163$ 302,739$ 56,424$ 15.71 Operating expenses 50,824 50,824 105,172 (54,348) -106.93 Capital outlay 75,000 75,000 75,000 100.00 Total Administration 484,987 484,987 407,911 77,076 15.89 Insurance and General Liability Operating expenses 28,900 28,900 34,496 (5,596) (19.36) Reserves Operating 7,775 7,775 18,189 (10,414) (133.94) Capital 250,000 250,000 250,000 0.00 Total Reserves 257,775 257,775 268,189 (10,414) (4.04) Debt service Debt service 234,825 234,825 234,641 184 Total expenses on the budgetary basis 8,026,825 9,429,257 8,222,889 1,206,368 12.79 Revenues over expenses $ $ (55,423)$ (55,423)$ Adjustments to reconcile to the GAAP Basis Total expenses on the budgetary basis 8,222,889$ OPEB adjustments 278 Less: capital reserve (250,000) Less: capital outlay costs capitalized (1,354,980) Less: debt service (234,641) Less: lease adjustment (6,780) Add: depreciation expense 910,768 Total operating expenses 7,287,534$ 101 3/8/25 Final Draft THIS PAGE INTENTIONALLY LEFT BLANK 3/8/25 Final Draft STATISTICAL SECTION 3/8/25 Final Draft This part of the Village of North Palm Beach's comprehensive annual financial report presents detailed unaudited information as a context for understanding what the information in the financial statement, note disclosures, and required supplementary information says about the Village's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the Village's financial performance and well-being have changed over time. These schedules include: Net Position by Component 102 Changes in Net Position 103 Fund Balances, Governmental Funds 105 Changes in Fund Balances, Governmental Fund 106 Revenue Capacity These schedules contain information to help the reader assess the Village's most significant local revenue source, the property tax. Net Assessed Value and Estimated Actual Value of Taxable Property 108 Property Tax Rates - Direct and Overlapping Governments 109 Principal Property Taxpayers 110 Property Tax Levies and Collections 111 Debt Capacity These schedules present information to help the reader assess the affordability of the Village's current levels of outstanding debt and the Village's ability to issue additional debt in the future. Ratios of Outstanding Debt by Type 112 Direct and Overlapping Governmental Activities Debt 113 Pledged-Revenue Coverage 114 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the Village's financial activities take place. Demographic and Economic Statistics 115 Principal Employers 116 Operating Information These schedules contain service and infrastructure data to help understand how the information in the Village's financial report relates to the services the Village provides and the activities it performs. Full-Time Equivalent Village Government Employees by Function 117 Operating Indicators by Function/Program 118 Capital Asset Statistics by Function/Program 119 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. STATISTICAL SECTION 3/8/25 Final Draft 2015 (1)2016 2017 2018 2019 Governmental Activities: Net investment in capital assets 14,711,016$ 14,102,547$ 13,484,731$ 15,429,484$ 18,814,116$ Restricted 177,431 398,519 992,538 484,568 525,536 Unrestricted 6,168,366 6,677,850 6,536,225 6,658,744 7,504,062 Total governmental activities net position 21,056,813 21,178,916 21,013,494 22,572,796 26,843,714 Business-Type Activities: Net investment in capital assets 1,833,975 1,880,421 1,991,168 3,056,715 3,422,142 Unrestricted 544,523 418,726 361,461 (1,324,978) (3,162,414) Total business-type activities net position 2,378,498 2,299,147 2,352,629 1,731,737 259,728 Primary government: Net investment in capital assets 16,544,991 15,982,968 15,475,899 18,486,199 22,236,258 Restricted 177,431 398,519 992,538 484,568 525,536 Unrestricted 6,712,889 7,096,576 6,897,686 5,333,766 4,341,648 Total primary government net position 23,435,311$ 23,478,063$ 23,366,123$ 24,304,533$ 27,103,442$ 2020 2021 2022 2023 2024 Governmental Activities: Net investment in capital assets 22,423,120$ 18,910,112$ 20,231,457$ 22,360,893$ 24,106,574$ Restricted 986,489 1,418,916 3,331,270 1,923,630 2,075,644 Unrestricted 6,689,693 10,078,079 17,346,639 19,242,051 21,579,796 Total governmental activities net position 30,099,302 30,407,107 40,909,366 43,526,574 47,762,014 Business-Type Activities: Net investment in capital assets 2,947,241 5,874,752 5,976,057 6,236,086 6,907,891 Unrestricted (3,161,738) (2,599,491) (1,248,264) 612,692 901,322 Total business-type activities net position (214,497) 3,275,261 4,727,793 6,848,778 7,809,213 Primary government: Net investment in capital assets 25,370,361 24,784,864 26,207,514 28,596,979 31,014,465 Restricted 986,489 1,418,916 3,331,270 1,923,630 2,075,644 Unrestricted 3,527,955 7,478,588 16,098,375 19,854,743 22,481,118 Total primary government net position 29,884,805$ 33,682,368$ 45,637,159$ 50,375,352$ 55,571,227$ (1)The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position. Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. Fiscal Year VILLAGE OF NORTH PALM BEACH NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Unaudited 102 3/8/25 Final Draft VILLAGE OF NORTH PALM BEACH CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Unaudited Fiscal Year 2015 2016 2017 2018 2019 Expenses Governmental activities: General government 3,028,716$ 2,985,185$ 3,205,903$ 3,213,886$ 3,312,770$ Public safety 9,311,441 9,308,778 9,905,815 10,045,757 10,505,278 Public works 4,963,704 5,106,651 5,707,570 5,911,225 5,603,991 Community development and planning 1,308,924 1,382,121 1,255,115 1,458,523 1,685,525 Leisure services 2,973,687 2,904,715 3,114,720 3,058,410 3,037,981 Interest on long-term debt 266,892 499,929 489,988 Total governmental activities expenses 21,586,472 21,687,450 23,456,015 24,187,730 24,635,533 Business-type activities: Country club 3,842,660 3,845,547 2,903,224 2,912,523 2,879,376 Stormwater Total business-type activities 3,842,660 3,845,547 2,903,224 2,912,523 2,879,376 Total primary government expenses 25,429,132$ 25,532,997$ 26,359,239$ 27,100,253$ 27,514,909$ Program Revenues Governmental activities: Charges for services: General government 131,445$ 128,459$ 134,249$ 140,998$ 147,104$ Public safety 537,064 628,529 557,265 548,019 687,905 Public works 514,354 565,011 547,596 510,732 538,459 Community development and planning 1,163,875 1,213,032 1,222,464 1,495,298 1,799,878 Leisure services 1,006,382 994,918 1,022,175 876,174 899,164 Other government Operating grants and contributions 380,567 365,823 377,339 422,255 395,376 Capital grants and contributions 26,548 229,161 102,187 9,591 808,193 Total governmental activities program revenues 3,760,235 4,124,933 3,963,275 4,003,067 5,276,079 Business-type activities: Charges for services: Country club 3,788,852 3,720,573 2,946,432 2,946,432 1,406,563 Stormwater Operating grants and contributions Capital grants and contributions Total business-type activities program revenues 3,788,852 3,720,573 2,946,432 2,254,638 1,406,563 Total primary government program revenues 7,549,087$ 7,845,506$ 6,909,707$ 6,257,705$ 6,682,642$ Net (Expense)/Revenue Governmental activities (17,826,237)$ (17,562,517)$ (19,492,740)$ (20,184,663)$ (19,359,454)$ Business-type activities (53,808) (124,974) 43,208 (657,885) (1,472,813) Total primary government net expense (17,880,045)$ (17,687,491)$ (19,449,532)$ (20,842,548)$ (20,832,267)$ General revenues and other changes in net position: Governmental activities: Taxes: Property taxes 11,364,888$ 12,253,917$ 13,091,985$ 15,003,141$ 16,185,283$ Local option gas taxes 282,549 288,150 305,700 302,208 307,130 Local option infrastruture surtax 552,600 879,565 922,937 Utility service taxes 2,267,118 2,303,294 2,413,679 2,511,877 2,521,954 Franchise taxes 1,253,139 1,263,812 1,306,997 1,294,280 1,352,464 Sales and use taxes 1,332,209 1,363,954 1,371,890 1,413,335 1,448,423 Investment earnings 108,794 103,353 126,926 376,227 811,915 Miscellaneous 57,137 60,026 150,698 268,471 80,266 Gain on disposl of equipment 30,457 48,114 6,843 74,449 Transfers Total governmental activities 16,696,291 17,684,620 19,327,318 22,123,553 23,630,372 Business-type activities: Investment income 10,393 9,230 10,274 13,874 804 Miscellaneous 36,393 Transfers Total business-type activities 10,393 45,623 10,274 13,874 804 Total primary government 16,706,684$ 17,730,243$ 19,337,592$ 22,137,427$ 23,631,176$ Change in net position Governmental activities (1,129,946)$ 122,103$ (165,422)$ 1,938,890$ 4,270,918$ Business-type activities (43,415) (79,351) 53,482 (644,011) (1,472,009) Total primary government (1,173,361)$ 42,752$ (111,940)$ 1,294,879$ 2,798,909$ Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. 103 3/8/25 Final Draft 2020 2021 2022 2023 2024 3,541,302$ 3,819,733$ 3,565,793$ 3,781,088$ 4,355,400$ 12,103,224 11,260,437 10,899,752 14,930,313 15,916,330 5,633,427 5,416,934 5,359,535 6,172,611 6,280,133 1,398,876 1,261,701 1,406,266 1,497,167 2,060,806 2,795,698 2,706,225 3,441,248 4,941,996 4,379,178 520,755 477,717 470,896 435,245 369,135 25,993,282 24,942,747 25,143,490 31,758,420 33,360,982 4,242,674 5,942,293 6,566,206 6,936,277 7,332,550 123,196 182,297 455,998 4,242,674 5,942,293 6,689,402 7,118,574 7,788,548 30,235,956$ 30,885,040$ 31,832,892$ 38,876,994$ 41,149,530$ 152,779$ 217,227$ 200,020$ 188,225$ 189,169$ 488,393 496,492 597,258 609,761 630,561 511,916 461,166 464,084 485,449 566,205 1,723,949 1,955,663 2,139,067 2,177,673 2,819,348 853,581 375,196 544,283 615,554 688,903 717,982 602,032 7,109,940 600,847 674,633 850,187 21,775 30,817 1,152,105 25,533 5,298,787 4,129,551 11,085,469 5,829,614 5,594,352 3,768,449 5,903,220 6,833,669 7,375,933 7,486,328 479,459 484,614 466,472 50,000 199,999 3,768,449 5,903,220 7,363,128 7,860,547 8,152,799 9,067,236$ 10,032,771$ 18,448,597$ 13,690,161$ 13,747,151$ (20,694,495)$ (20,813,196)$ (14,058,021)$ (25,928,806)$ (27,766,630)$ (474,225) (39,073) 673,726 741,973 364,251 (21,168,720)$ (20,852,269)$ (13,384,295)$ (25,186,833)$ (27,402,379)$ 16,991,314$ 17,629,392$ 17,833,603$ 20,000,861$ 22,472,458$ 273,428 283,233 297,106 305,894 291,717 869,852 1,011,627 1,228,691 1,287,744 1,316,252 2,558,092 2,539,175 2,726,954 3,000,981 3,052,329 1,304,936 1,354,110 1,492,336 1,654,533 1,600,774 1,345,508 1,548,330 1,868,788 1,942,316 1,883,159 502,335 81,338 (248,726) 1,394,072 2,070,430 104,618 181,109 92,879 72,707 287,572 21,384 29,460 169,456 (3,528,697) (760,811) (1,282,550) (450,000) 23,950,083 21,121,001 24,560,280 28,546,014 32,524,691 134 17,995 96,462 210,779 3,528,697 760,811 1,282,550 450,000 3,528,831 778,806 1,379,012 660,779 23,950,083$ 24,649,832$ 25,339,086$ 29,925,026$ 33,185,470$ 3,255,588$ 307,805$ 10,502,259$ 2,617,208$ 4,758,061$ (474,225) 3,489,758 1,452,532 2,120,985 1,025,030 2,781,363$ 3,797,563$ 11,954,791$ 4,738,193$ 5,783,091$ 104 3/8/25 Final Draft THIS PAGE INTENTIONALLY LEFT BLANK 3/8/25 Final Draft 2015 2016 2017 2018 2019 General Fund Nonspendable 155,594$ 358,606$ 183,220$ 2,789,824$ 2,789,824$ Restricted 131,931 353,019 781,756 61,227 61,227 Committed Assigned 319,888 208,204 316,266 582,008 582,008 Unassigned 10,802,623 10,724,049 11,811,468 8,177,758 8,177,758 Total general fund 11,410,036$ 11,643,878$ 13,092,710$ 11,610,817$ 11,610,817$ All other Governmental Funds Restricted 45,500$ 45,500$ 13,988,744$ 11,826,016$ 464,309$ Assigned Special revenue funds 318,526 508,481 388,981 3,506 3,507 Capital projects funds 1,448,620 1,604,073 1,670,196 5,398,245 3,727,482 Unassigned (114,279) (421,599) Total all other governmental funds 1,812,646$ 2,158,054$ 16,047,921$ 17,113,488$ 3,773,699$ 2020 2021 2022 2023 2024 General Fund Nonspendable 2,325,778$ 2,102,739$ 1,839,603$ 1,895,720$ 1,843,212$ Restricted 79,730 87,342 180,748 174,211 378,350 Committed Assigned 176,865 494,163 369,653 456,392 512,716 Unassigned 11,622,285 13,892,476 13,653,372 15,786,046 19,549,914 Total general fund 14,204,658$ 16,576,720$ 16,043,376$ 18,312,369$ 22,284,192$ All other Governmental Funds Restricted 906,759$ 1,331,574$ 1,022,545$ 1,749,419$ 1,697,294$ Assigned Special revenue funds 263,798 252,000 6,915,128 4,544,422 4,802,831 Capital projects funds 1,151,011 1,010,681 2,581,131 2,468,358 2,989,504 Unassigned (2,946) (84,357) Total all other governmental funds 2,321,568$ 2,594,255$ 10,515,858$ 8,677,842$ 9,489,629$ VILLAGE OF NORTH PALM BEACH FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited 105 3/8/25 Final Draft VILLAGE OF NORTH PALM BEACH CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited Fiscal Year 2015 2016 2017 2018 2019 Revenues: Taxes 15,167,694$ 16,109,173$ 17,118,361$ 19,111,506$ 20,366,831$ Licenses and Permits 947,158 1,235,782 997,656 1,222,594 1,522,913 Intergovernmental 1,758,246 1,765,836 2,417,809 2,679,389 2,910,395 Charges for services 2,231,673 2,364,013 2,321,298 2,200,860 2,399,174 Fines and forfeitures 128,235 91,534 124,395 100,140 100,188 Investment earnings 108,794 103,353 126,926 376,227 811,915 Miscellaneous 122,107 191,250 157,063 412,513 510,688 Total revenues 20,463,907 21,860,941 23,263,508 26,103,229 28,622,104 Expenditures: General government 2,904,553 2,876,521 2,970,223 3,059,623 3,275,570 Public safety 8,966,077 9,129,947 9,166,060 9,669,361 10,350,598 Public works 4,255,636 4,266,749 4,882,159 5,313,834 5,255,606 Community development 1,270,399 1,351,061 1,190,759 1,429,764 1,532,428 Leisure services 2,514,495 2,448,164 2,591,866 2,613,664 2,664,689 Capital outlay 1,530,430 1,209,249 2,123,742 5,507,617 15,487,329 Debt service Principal payments 680,000 882,777 Interest paid on debt 613,101 488,786 Total expenditures 21,441,590 21,281,691 22,924,809 28,886,964 39,937,783 Excess of revenues over (under) expenditures (977,683) 579,250 338,699 (2,783,735) (11,315,679) Other financing sources (uses) Transfers in 2,091,246 1,503,750 1,503,750 4,963,307 407,000 Transfers out (2,091,246) (1,503,750) (1,503,750) (4,963,307) (407,000) Financing contracts 343,299 Proceeds from debt issuance 15,000,000 Insurance proceeds Total other financing sources (uses) 15,000,000 343,299 Net change in fund balances (977,683)$ 579,250$ 15,338,699$ (2,783,735)$ (10,972,380)$ Debt service as a percentage of noncapital expenditures ----5.53% 106 3/8/25 Final Draft 2020 2021 2022 2023 2024 21,127,770$ 21,805,910$ 22,349,999$ 24,962,269$ 27,417,278$ 1,320,361 1,574,639 1,764,430 1,707,690 2,171,127 3,857,230 3,189,191 10,155,774 3,839,043 4,172,395 2,169,814 1,726,853 1,968,268 2,090,941 2,423,911 197,343 154,410 169,045 244,487 241,367 502,335 81,338 (248,726) 1,394,071 2,070,430 160,147 296,245 364,911 354,359 289,355 29,335,000 28,828,586 36,523,701 34,592,860 38,785,863 3,265,210 3,507,052 3,612,174 3,674,104 4,203,715 10,418,956 10,853,605 11,602,110 13,065,414 14,064,260 5,300,077 5,117,986 4,988,651 5,453,097 5,395,273 1,382,443 1,292,216 1,437,597 1,462,865 1,993,644 2,305,309 1,695,054 2,431,335 3,852,206 3,462,501 5,094,135 3,528,772 4,145,090 3,555,836 2,988,854 934,496 1,106,148 1,278,543 1,422,411 1,496,211 502,193 491,022 476,504 453,154 398,106 29,202,819 27,591,855 29,972,004 32,939,087 34,002,564 132,181 1,236,731 6,551,697 1,653,773 4,783,299 844,475 625,280 2,913,315 7,271,384 1,425,194 (844,475) (899,280) (3,291,865) (8,553,934) (1,875,194) 1,009,529 1,682,018 1,215,112 59,754 972,932 1,009,529 1,408,018 836,562 (1,222,796) 522,932 1,141,710$ 2,644,749$ 7,388,259$ 430,977$ 5,306,231$ 5.70%5.90%6.79%6.39%6.17% 107 3/8/25 Final Draft Fiscal Year Ended Sept 30, Tax Roll Year Residential Property Commercial Property Personal Property Total Net Market - Assessed Value Total Direct Tax Rate 2015 2014 1,355,969,888$ 214,484,701$ 34,077,944$ 1,604,532,533$ 7.3300 2016 2015 1,453,735,176 232,020,936 36,939,006 1,722,695,118 7.3300 2017 2016 1,545,192,840 259,097,141 40,181,846 1,844,471,827 7.3300 2018 2017 1,804,338,668 279,488,569 35,855,827 2,119,683,064 7.3300 2019 2018 1,897,471,175 297,293,001 38,440,924 2,233,205,100 7.5000 2020 2019 1,991,785,138 315,226,821 37,569,787 2,344,581,746 7.5000 2021 2020 2,063,558,234 330,847,141 38,837,770 2,433,243,145 7.5000 2022 2021 2,244,316,264 336,972,923 42,155,674 2,623,444,861 7.0500 2023 2022 2,532,118,244 373,406,169 47,484,879 2,953,009,292 7.0000 2024 2023 2,885,512,258 429,541,064 53,327,253 3,368,380,575 6.9000 Note: Assessed values are established by the Palm Beach Property Appraiser's office as of January 1, each year. Assessments were increased to 100% of market value as of 1980. Property in the Village is reassessed each year. Property is assessed at actual value, therefore the assessed values are equal to actual value. Tax rates are per $1,000 of assessed value. Source:Palm Beach County Property Appraiser Real Property VILLAGE OF NORTH PALM BEACH NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS 108 3/8/25 Final Draft Palm Beach Total County Palm Direct and Fiscal Tax Roll Village of School Beach Special Overlapping Year Year N. Palm Beach District County Districts Rates 2015 2014 7.3300 7.5940 4.9729 2.1732 22.0701 2016 2015 7.3300 7.5120 4.9277 2.0974 21.8671 2017 2016 7.3300 7.0700 4.9142 1.9453 21.2595 2018 2017 7.3300 6.7690 4.9023 1.7818 20.7831 2019 2018 7.5000 4.8980 6.5720 1.6920 20.6620 2020 2019 7.5000 7.1640 4.8580 1.6873 21.2093 2021 2020 7.5000 7.0100 4.8124 1.6753 20.9977 2022 2021 7.0500 6.8750 4.8149 1.6386 20.3785 2023 2022 7.0000 6.5190 4.7439 1.5390 19.8019 2024 2023 6.9000 6.4570 4.5188 1.4258 19.3016 Note:All millage rates are based on $1 for every $1,000 of assessed value. Source:North Palm Beach: Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments (1)Overlapping rates are those of local and county governments that apply to property owners within the Village of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners (i.e. The rates for special districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district.) Overlapping Rates (1) VILLAGE OF NORTH PALM BEACH PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 109 3/8/25 Final Draft Percentage Percentage of Total of Total Village Net Village Net Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayers Value Rank Value Value Rank Value Olen Residential Realty 46,088,968$ 1 1.37%23,629,696$ 2 1.47% Sanctuary Bay Trust Corporation 36,685,137 2 1.09%18,581,936 4 1.16% SHM Old Port Cove LLC 35,961,108 3 1.07% Crystal Cove Commons LLC 30,279,096 4 0.90% Florida Power & Light 32,472,096 5 0.96%18,677,604 3 Shoppes at City CentreLLC 28,326,131 6 0.84% New Country Motor Cars of PB LLC 19,121,754 7 0.57%13,020,939 5 0.81% Chouest Gary 12,793,422 8 0.38%8,217,716 10 NP Devland Holdings LLC 14,268,310 9 0.42% SHM North Palm Beach LLC 13,167,976 10 0.39% Old Port Cove Equities, INC 29,886,172 1 1.86% Crystal Tree Property Owners 9,500,000 9 0.59% CF02 Palm Beach III LP 12,501,222 6 0.78% Old Port Cove Holdings, INC 9,987,421 8 0.62% Domani Development LLC 11,690,020 7 0.73% Total 269,163,998$ 7.99%155,692,726$ 8.02% Source: Palm Beach Country Appraiser VILLAGE OF NORTH PALM BEACH PRINCIPAL PROPERTY TAXPAYERS 2024 & 2015 Presented 2024 2015 Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year. 110 3/8/25 Final Draft Fiscal Year Total Taxes Collections in Ending Tax Roll Levied for Percent Subsequent Percent Sept 30,Year Fiscal Year Amount of Levy Years Amount of Levy 2015 2014 10,503,598$ 11,350,738$ 96.51%14,777$ 11,365,515$ 96.64% 2016 2015 11,761,226 12,197,736 103.71%57,133 12,254,869 104.20% 2017 2016 12,627,355 13,051,272 103.36%41,267 13,092,539 103.68% 2018 2017 13,519,978 14,999,572 110.94%3,390 15,002,962 110.97% 2019 2018 15,537,277 16,176,654 104.12%6,223 16,182,877 104.16% 2020 2019 16,749,038 16,980,948 101.38%7,965 16,988,913 101.43% 2021 2020 17,584,371 17,608,184 100.14%21,233 17,629,417 100.26% 2022 2021 18,249,331 17,832,252 97.71%1,406 17,833,658 97.72% 2023 2022 18,495,286 19,955,906 107.90%31,899 19,987,805 108.07% 2024 2023 20,671,065 22,472,458 108.71%3,150 22,475,608 108.73% Source:Palm Beach Country Property Appraiser of the Levy to Date Total Collections Collected within VILLAGE OF NORTH PALM BEACH PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN CALENDAR YEARS the Fiscal Year 111 3/8/25 Final Draft VILLAGE OF NORTH PALM BEACH RATIOS OF OUTSTANDING DEBT BY TYPE Fiscal Year Leases/Percent of Ended Loans Financing Loans Financing Median Personal Per Sept 30,Payable Contracts Payable Contracts Total Income (1)Capita 2015 -$ -$ 2,824,987$ 147,767$ 2,972,754$ 0.37%234.94$ 2016 - - 2,684,913 - 2,684,913 0.35%212.20 2017 15,000,000 - 2,247,088 - 17,247,088 1.85%1,292.69 2018 14,320,000 - 1,939,366 - 16,259,366 1.79%1,229.26 2019 13,515,000 265,522 1,618,633 - 15,399,155 1.74%1,161.32 2020 12,680,000 1,175,555 1,284,668 - 15,140,223 1.70%1,135.63 2021 11,815,000 2,616,425 936,310 - 15,367,735 1.55%1,173.47 2022 10,915,000 3,452,994 573,333 367,387 15,308,714 1.55%1,160.54 2023 9,980,000 2,965,583 195,112 207,158 13,347,853 1.10%1,064.42 2024 9,010,000 2,439,372 - 166,344 11,615,716 0.89%856.11 Note:Details regarding the Village's outstanding debt may be found in the notes to the financial statements. (1)See the Schedule of Demographic and Economic Statistics on page 103 for personal income and population data. Governmental Activities LAST TEN FISCAL YEARS Business-type Activities 112 3/8/25 Final Draft Percentage Amount Net Applicable to Applicable to Debt the Village of the Village of Outstanding North Palm Beach (1) North Palm Beach Debt repaid with property taxes: Palm Beach County 106,164$ 1.17%1,242$ Palm Beach County School Board 2,910 1.03%30 Other debt: Palm Beach County 757,171 1.17%8,859 Palm Beach County School Board 1.02% Subtotal, overlapping debt 10,131 Village of North Palm Beach Direct Debt 11,449,372 Total direct and overlapping debt 11,459,503$ Sources:Palm Beach County Tax Appraiser's Office Palm Beach County School Board Palm Beach County Clerk & Comptroller Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Village. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Village of North Palm Beach. This process recognizes that, when considering the Village's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (1)For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Value that is within the Village's boundaries and dividing it by the County's and School Board's total taxable assessed value. This approach was also used for the other debt. VILLAGE OF NORTH PALM BEACH DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT SEPTEMBER 30, 2024 Unaudited Government Unit 113 3/8/25 Final Draft VILLAGE OF NORTH PALM BEACH Pledged - Revenue Coverage Country Club Bonds Last Ten Fiscal Years Unaudited Required Fiscal Gross Operating Debt Year Revenues (1) Expenses (2)Net Revenue Service Coverage (3) 2015 3,799,245$ 3,226,907$ 572,338$ 394,900$ 1.45 2016 3,766,196 3,333,395 432,801 394,900 1.10 2017 2,956,706 2,472,812 483,894 394,900 1.23 2018 2,268,512 2,227,913 40,599 394,900 0.10 2019 1,407,367 2,443,701 (1,036,334) 394,900 -2.62 2020 3,769,907 3,504,881 265,026 394,900 0.67 2021 5,903,220 4,964,502 938,718 394,900 2.38 2022 6,848,425 5,476,786 1,371,639 394,900 3.47 2023 7,448,289 5,809,672 1,638,617 394,900 4.15 2024 7,663,341 6,214,487 1,448,854 199,111 7.28 Note:The Non-Ad Valorem Revenue Notes, Series 2017 do not have any pledged revenues. (1)Gross revenue includes all revenues derived by the Village from the ownership and operation of the Country Club. (2)Operating expenses excludes non-cash expenses (3)Coverage should be not less than 1.00. 114 3/8/25 Final Draft Per Palm Beach Median Capita County Calendar Personal Personal Unemployment Year Population (1) Income (1) Income (1)Rate 2015 (estimate)12,653 61,057$ 43,120$ 3.15 2016 (estimate)12,817 61,653 45,110 2.10 2017 (estimate)13,342 69,718 46,160 2.70 2018 (estimate)13,227 68,833 46,160 1.79 2019 (estimate)13,260 66,898 48,240 1.24 2020 (estimate)13,332 66,898 48,240 1.15 2021 (estimate)13,096 75,510 52,970 4.38 2022 (estimate)13,191 74,666 52,970 0.77 2023 (estimate)12,540 96,464 52,970 0.63 2024 (estimate)13,568 98,806 52,970 1.09 Sources:Business Development Board US Census Bureau Note: (1)All information available at the current time is presented. VILLAGE OF NORTH PALM BEACH DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Unaudited 115 3/8/25 Final Draft 780177 Percentage Percentage of Total of Total Employer Employees Employment Employees Employment Palm Beach Country School District 22,218 2.85%21,656 3.12% State Government 10,460 1.34%7,470 1.08% Federal Government 7,139 0.92%6,658 0.96% Florida Alantic University 6,335 0.81%2,529 0.36% Palm Beach County Government 5,873 0.75%5,930 0.85% Tenet Coastal Division PBC 5,734 0.73%4,595 0.66% NextEra Energy (Florida Power & Light) 5,598 0.72%4,005 0.58% Baptist Health South Florida Hospital (3)3,135 0.40%2,150 0.31% Veterans Health Administration 2,948 0.38%2,700 0.39% Hospital Corporation of America (HCA) (1)2,612 0.33%3,476 0.50% Jupiter Medical Center 2,540 0.33%2,195 0.32% The Breakers Hotel 2,300 0.29%2,000 0.29% Office Depot 2,000 0.26%2,000 0.29% Florida Crystal Corp.2,000 0.26%1,900 0.27% Pratt & Whitney 2,000 0.26%0.00% City of Boca Raton 1,810 0.23%0.00% City of West Palm Beach 1,725 0.22%0.00% 86,427 11.08%69,264 9.98% * Employer: Palm Beach County Information is not available for the Village of North Palm Beach. ** Percentage of total employment is calculated using Palm Beach County's available labor force in each of the respective years presented. Notes: (1) Formerly Columbia Palm Beach Health Care Systems, Inc (2) Formerly Boca Raton Community Hospital *** Most current data available in BDP.org. (3) Formerly Bethesda Memorial Hospital Source: Business Development Board of Palm Beach County, floridajobs.org VILLAGE OF NORTH PALM BEACH PRINCIPAL EMPLOYERS 2024 & 2015 Presented 2024 2015 116 3/8/25 Final Draft 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Number of Employees: General Government Village Manager Full-Time 2 2 4 4 4 4 4 3 3 3 Part-Time 0 0 1 1 1 1 0 0 1 0 Information Technology Full-Time 3 3 3 3 3 3 3 4 4 5 Part-Time 0 0 0 0 0 1 1 0 0 0 Human Resources Full-Time 2 2 2 2 2 2 2 2 3 3 Part-Time 1 2 2 2 2 2 2 2 1 0 Village Clerk - Full-Time 3 3 3 3 3 3 3 3 2 2 Finance Full-time 7 7 5 6 6 6 6 6 6 5 Part-Time 0 0 1 0 0 0 0 0 0 0 Public Works Full-time 35 34 36 37 37 37 36 32 32 32 Part-Time 0 0 0 0 2 2 2 2 3 3 Public Safety Police Full-time 36 36 36 38 38 38 38 40 42 42 Part-Time 13 13 13 15 15 15 15 15 15 15 Fire Rescue Full-time 24 24 24 24 24 24 24 24 25 26 Part-Time 0 0 0 0 0 0 1 1 0 0 Community Development and Planning Full-time 11 12 13 14 15 15 14 14 15 12 Part-Time 0 0 1 1 1 0 2 2 2 7 Leisure Services Library Full-time 7 7 7 7 7 7 7 7 7 7 Part-Time 9 9 9 7 7 9 9 9 9 9 Recreation Full-time 6 6 6 6 6 5 5 5 5 5 Part-Time 43 43 43 42 42 16 17 16 18 27 Other Government - Country Club ** Full-time 8 8 5 5 6 7 9 10 12 12 Part-Time 65 65 27 27 27 28 26 62 59 62 275 276 241 244 248 225 226 259 264 277 * Variance exists due to the employment of seasonal and part-time employees. ** Includes Golf/Pool/Tennis Source:Village of North Palm Beach Budget Report Total Number of Employees Budgeted FY Ending VILLAGE OF NORTH PALM BEACH LAST TEN FISCAL YEARS (*) Full-Time Equivalent Village Government Employees by Function 117 3/8/25 Final Draft 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 FUNCTION/PROGRAM PUBLIC WORKS Sanitation (Tons of Refuse Collected)11,167 12,556 12,980 12,624 12,330 12,059 12,398 10,683 11,274 11,948 No. of collection units for solid waste (residential) 7,618 7,614 7,614 7,632 7,632 7,627 7,627 7,715 7,715 7,715 Number of vehicles maintained 98 92 85 89 88 89 90 97 103 109 Number of repair overlays completed (miles)- - - - - - - 6.86 2.80 9.00 POLICE Number of arrests by police officers 293 247 233 192 134 150 150 161 171 163 Number of traffic citations issued 3,407 2,494 1,974 2,014 1,184 853 2,038 2,617 2,454 2,150 FIRE RESCUE EMS average response times (minutes)5.05 5.26 5.21 5.37 4.50 5.42 5.44 5.40 5.55 5.20 Number of EMS calls 1,499 1,601 1,746 1,550 1,577 1,452 1,620 1,724 1,705 1,728 COMMUNITY DEVELOPMENT & PLANNING Bldg Dept - Number of Permits,Subpermits and certificates 3,920 4,242 4,665 2,173 2,737 4,832 5,103 2,989 4,781 2,696 Number of code enforcement violations/cases 769 680 **516/357 **726/317 885 941 327 **217/20 423 470 Number of code violations brought to board/magistrate (Calendar Yr End)56 42 98 246 263 183***173 97 47 19 RECREATION Number of community events presented 57 48 40 38 24 8 19 23 24 23 Number of registrants in athletic programs 1,389 1,174 1,109 1,174 1,077 120***275 435 863 1014 LIBRARY Library - Number of Volumes 47,339 *57,935 41,161 43,992 45,446 39,886 33,315 30,357 31,015 27,618 OTHER GOVERNMENT Country Club Number of Golf Members 255 265 271 178 198 278 263 208 227 243 Number of Tennis/Pool Members 193 183 183 159 182 241 786 569 308 475 Source: Village of North Palm Beach *In FY 2016 Number of Volumes included not only printed items, but media items as well. **Includes only the number of violations/cases opened and not a reflection of the total number of open violations as was reported for years prior to 2017 ***Variances due to COVID-19 Number of code violations not provided by department at the time of data collection VILLAGE OF NORTH PALM BEACH OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 118 3/8/25 Final Draft 2015 2016*2017 2018 2019 2020 2021 2022 2023 2024 Function/Program: General Government No. of General Government Buildings 23 23 23 23 23 23 23 23 23 23 Public Works Square Miles 5.18 5.18 5.18 5.18 5.18 5.18 5.40 5.40 5.40 5.40 Miles of Streets 36.00 32.30**32.30 32.30 32.30 32.30 32.30 32.30 32.00 32.30 Number of Street Lights (within corp surroundings)513 513 628****628 628 628 628 628 628 628 Public Safety Fire: Number of Stations 1 1 1 1 1 1 1 1 1 1 Number of Firemen& Officers 0 0 0 0 0 0 0 0 0 0 Number of Firemen/Paramedics/EMTs 22 23 24 21 23 18 17 18 19 19 Number of Fire Captains 0 0 0 0 0 3 3 3 3 3 Police/EMS Protection: Number of Stations 1 1 1 1 1 1 1 1 1 1 Number of Policemen & Officers 28 28 28 30 28 30 24 31 31 33 Number of Police Captains 2.5 2.5 2.5 2.5 2.5 2.5 1 2 2 2 Leisure Services Recreation/Tennis/Pool Number of Parks 4 4 4 4 4 4 4 4 4 4 Public Tennis Courts 2 2 2 2 2 2 2 2 2 2 Swimming Pool 1 1 1 1 1 1 1 1 1 1 Number of Marinas 1 1 1 1 1 1 1 1 1 1 Library Number of Libraries 1 1 1 1 1 1 1 1 1 2 Number of Volumes (Printed items only)47,339 48,913 33,502 36,009 37,429 33,672 28,575 26,031 27,068 23,684 Other Government Country Club Golf Course 1 1 1 1 1 1 1 1 1 1 Driving Range 1 1 1 1 1 1 1 1 1 1 Tennis Courts 10 10 10 10 10 10 10 10 10 10 Restaurant 1 1 1***1***1 1 1 1 1 1 Snack Bar 1 1 1***1***1 1 1 1 1 1 Source: Village of North Palm Beach *Preliminary 2016 information is presented **A Centerline Miles Study was completed during FY 2016 and the number of NPB Village centerline miles from the report is presented going forward ***Restaurant services closed on 10/01/2016- Reopened in 2019 ****173 Village owned/455 FPL owned VILLAGE OF NORTH PALM BEACH CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 119 3/8/25 Final Draft OTHER REPORTS 3/8/25 Final Draft 120 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 The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of North Palm Beach, Florida, as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Village of North Palm Beach, Florida’s basic financial statements and have issued our report thereon dated March 7, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Village of North Palm Beach, Florida’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Village of North Palm Beach, Florida’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Village of North Palm Beach, Florida’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 3/8/25 Final Draft 121 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Village of North Palm Beach, Florida’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. West Palm Beach, Florida March 7, 2025 3/8/25 Final Draft 122 MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida Report on the Financial Statements We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated March 7, 2025. Auditor’s Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 7, 2025, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. There are no prior year findings that have not been corrected. 3/8/25 Final Draft 123 Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This information is disclosed in Note 1 to the financial statements. Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the Village of North Palm Beach, Florida met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the Village of North Palm Beach, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes, during the fiscal year ended September 30, 2024. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Village of North Palm Beach, Florida. It is management’s responsibility to monitor the Village of North Palm Beach, Florida’s financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Our assessment was done as of the fiscal year end. The results of our procedures did not disclose any matters that are required to be reported. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Property Assessed Clean Energy (PACE) Programs A PACE program authorized pursuant to Section 163.081 or Section 163.082, Florida Statutes, did not operate within the Village of North Palm Beach, Florida’s geographical boundaries during the fiscal year under audit. Special District Component Units Section 10.554(1)(i)5.c, Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor General, there are no special district component units of the Village of North Palm Beach, Florida. 3/8/25 Final Draft 124 Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or fraud, waste, or abuse, that has occurred or is likely to have occurred, that has an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Single Audits The Village expended less than $750,000 of federal awards, excluding Coronavirus State and Local Fiscal Recovery Funds, and less than $750,000 of state financial assistance for the fiscal year ended September 30, 2024, and was not required to have a federal single audit or a state single audit. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the audit committee, the Village Council, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. March 7, 2025 West Palm Beach, Florida 3/8/25 Final Draft 125 INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida We have examined the Village of North Palm Beach, Florida’s compliance with Section 218.415, Florida Statutes during the year ended September 30, 2024. Management of the Village of North Palm Beach, Florida is responsible for the Village of North Palm Beach, Florida’s compliance with the specified requirements. Our responsibility is to express an opinion on the Village of North Palm Beach, Florida’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Village of North Palm Beach, Florida complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Village of North Palm Beach, Florida complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. Our examination does not provide a legal determination on the Village of North Palm Beach, Florida’s compliance with the specified requirements. In our opinion, the Village of North Palm Beach, Florida complied, in all material respects, with Section 218.415, Florida Statutes for the year ended September 30, 2024. This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, applicable management, and the Village Council, and is not intended to be and should not be used by anyone other than these specified parties. West Palm Beach, Florida March 7, 2025 3/8/25 Final Draft Village of North Palm Beach Audit Presentation to North Palm Beach Village Council March 13, 2025 Nowlen, Holt & Miner, P.A. Terry L. Morton, Jr., CPA Village of North Palm Beach Reports Issued  Independent Auditor’s Report on the Financial Statements –  This is a new format that started two years ago. The report does a much better job of explaining what an audit is, Management’s responsibilities, the Auditor’s responsibilities, and how the Audit Opinion relates to the various sections of the report.  Our report expressed an Unmodified Opinion on the financial statements, what is commonly called a “clean opinion. There is an emphasis paragraph for the prior period adjustment. In prior years the Village has not recorded accrued payroll as neither the liability nor the related change in expense/expenditure was considered material. In the current year the Village considers the liability material, and a prior period adjustment was recorded to decrease the beginning net position/fund balance for the prior unrecorded accrued liabilities. This did not have an effect on the current year statements and is explained in more detail in Note 18.  Independent Auditor’s Report on Internal Control and on Compliance and Other Matters – No material weaknesses reported and no instances of noncompliance or other matters that are required to be reported.  Independent Auditor’s Management Letter Required by Chapter 10.550, Rules of the Auditor General: There were no exceptions reported in the current year.  Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes – Section 218.415, Florida Statutes governs the Village’s Investment Policies. Our report expressed an Unmodified Opinion on the Village’s compliance with the requirements. Village of North Palm Beach Awards Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village of North Palm Beach for its Annual Comprehensive Financial Report (ACFR)for the fiscal year ended September 30, 2023. This was the 36th consecutive year that the Village has achieved this prestigious award. The Introductory section orients and guides the reader through the report. The Financial section includes the independent auditors’ report, Management’s Discussion and Analysis and presents the entity’s basic financial statements as well as notes to the statements. Management’s Discussion and Analysis offers a narrative, overview, and analysis of the fundamental financial statements whereas the notes to the statements provide more detailed information about the financial statement amounts and the Villages accounting policies. The Statistical section provides additional financial and statistical data, including data about financial trends that may better inform the reader about the government’s activities. The Other Reports sections provides reports required by Government Auditing Standards or Florida Statures. Village of North Palm Beach Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Village of North Palm Beach, Florida are described in Note 1 to the financial statements. The application of existing policies was not changed during the year. We noted no transactions entered into by the Village during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. New Accounting Standards Implemented in the Current Year There were no new accounting standards that had a significant impact on this year’s financial statements. New Accounting Standards and Other Items Affecting Next Year’s Audit No significant impacts are expected next year. Village of North Palm Beach - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 2020 2021 2022 2023 2024 Taxes Intergovernmental Charges for Services Licenses & Permits Investment Income Other Governmental Revenues Increase 2023 2024 (Decrease) Ad Valorem Taxes $ 20,000,861 $ 22,472,458 $ 2,471,597 Other Local Taxes 3,535,954 3,491,128 (44,826) Franchise & Utility Taxes 4,655,514 4,653,103 (2,411) Intergovernmental 608,983 972,984 364,001 Charges for Services 2,090,941 2,423,911 332,970 Licenses & Permits 1,707,690 2,171,127 463,437 Investment Income 1,394,071 2,070,430 676,359 Other 598,846 530,722 (68,124) Total $ 34,592,860 $ 38,785,863 $ 4,193,003 Total revenues increased 12.1% over 2023. The Ad Valorem Taxes increased by $2,471,597 due to increases in the property values and the Investment Income increased by $676,359 due to higher interest rates. Village of North Palm Beach $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2020 2021 2022 2023 2024 Public Safety Public Works Leisure Services General Government Community Dev. & Planning Capital Outlay Debt Service Governmental Expenditures Increase 2023 2024 (Decrease) Public Safety $13,065,414 $14,064,260 $ 998,846 Public Works 5,453,097 5,395,273 (57,824) Leisure Services 3,852,206 3,462,501 (389,705) General Government 3,674,104 4,203,715 529,611 Community Dev. & Planning 1,462,865 1,993,644 530,779 Capital Outlay 3,555,836 2,988,854 (566,982) Debt Service 1,875,565 1,894,317 18,752 Total $32,939,087 $34,002,564 $ 1,063,477 Total expenditures increased by 3.2% from 2023 The largest increase was in Public Safety, which was due to increased payroll costs. Village of North Palm Beach General Fund Unreserved Fund Balance The following graph presents the general fund unassigned fund balance (available, spendable resources) for the past five years. General fund unassigned fund balance at September 30, 2024 was $19,549,914. This represents approximately 63% of non-capital expenditures for fiscal year 2024. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2020 2021 2022 2023 2024 Village of North Palm Beach 2023 Figures for Benchmark - Governmental/Proprietary Funds, Pop 5,000 - 14,999 & Taxable Property Values $2,000,000,000 + Amounts are from the Florida Auditor General General Fund Assigned Plus Unassigned Fund Balance Divided by Expenditures Entity Tax Prop Value Population 2023 - North Palm Beach, Village of 55.82% 3,373 13,145 2024 - North Palm Beach, Village of 64.68% Arcadia, City of 28.60% 2,790 7,638 Cocoa Beach, City of 23.64% 2,900 11,356 Daytona Beach Shores, City of 143.52% 2,045 5,262 Fernandina Beach, City of 33.42% 3,936 13,499 Islamorada, Village of 73.44% 5,842 7,307 Key Biscayne, Village of 68.48% 10,009 14,751 Lauderdale-By-The-Sea, Town of 46.52% 3,366 6,191 Longboat Key, Town of 99.60% 8,339 7,537 Marathon, City of 151.07% 4,234 10,056 Palm Beach, Town of 52.81% 28,953 9,207 Palmetto, City of 45.71% 2,595 13,927 Sanibel, City of 49.96% 4,614 5,946 Southwest Ranches, Town of 46.01% 2,210 7,747 St. Pete Beach, City of 74.60% 4,792 8,879 Surfside, Town of 74.14% 4,129 5,398 Treasure Island, City of 78.25% 2,830 6,583 Wilton Manors, City of 50.99% 2,115 11,532 Averages: 67.10% Note: Taxable Property Value is in millions Village of North Palm Beach $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 2020 2021 2022 2023 2024 Operating Revenue Operating Expenses Country Club Operations Increase 2023 2024 (Decrease) Operating Revenue $ 7,858,483 $ 7,936,328 $ 77,845 Operating Expenses 6,871,979 7,287,534 415,555 Operating income (loss) 986,504 648,794 (337,710) Nonoperating (expenses) 8,058 131,997 123,939 Capital contributions 800,000 49,999 (750,001) Income (loss) $ 1,794,562 $ 830,790 $ (963,772) Operating revenues includes transfers from the General Fund primarily to help cover the costs of the pool and tennis operations. The $800,000 capital contributions in 2023 was from the Special Projects Fund for new Tennis Court lights and fencing and the $49,999 in 2024 was from a grant for the tennis courts. The increase in operating costs was mainly due to $328,000 paid to the former restaurant operator for improvements made to the facilities.