FY 2024 CAFRVillage of North Palm Beach, FL
Annual Comprehensive
Financial Report
Fiscal year ended September 30, 2024
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
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
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
INTRODUCTORY SECTION
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”
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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.
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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.
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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.
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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.
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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
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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
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
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
FINANCIAL SECTION
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.
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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
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
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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
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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.
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.
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 $55.57 million at the end of the latest fiscal
year.
A considerable portion of the Village's net position (55.81%) represents its investment in capital assets,
such as land, buildings, machinery, and equipment. This figure deducts any associated debt still outstanding,
which was utilized to procure these assets. The Village utilizes these capital assets to deliver services to its
citizens. Consequently, these assets are not liquid and cannot be utilized for future expenditure.
8
Table 2
Village of North Palm Beach
Net Position
(In Thousands)
Governmental Business-type
Activities Activities Total
2024 2023 2024 2023 2024 2023
Assets:
Current and other assets 36,550$ 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 $4.76 million, accounting for 82% of the total increase in the Village's net position.
Additional detail is shown in Table 3, which follows on the subsequent page.
9
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Activities Total
2024 2023 2024 2023 2024 2023
Revenues:
Program revenues:
Charges for services 4,894$ 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.
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.
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
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 $41.94 million, respectively (net of accumulated
depreciation).
13
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business-type
Activities Activities Total
2024 2023 2024 2023 2024 2023
Land 2,056$ 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.
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 $7.40 mils.
The Village's financial plan embodies an assertive approach to adequately sustain infrastructure and address
organizational gaps to deliver services to the community. While the budget allocates resources to enhance
the Village's ability to handle service and maintenance demands annually, there are also notable capital
investments planned for the upcoming fiscal year. Enhancing the dry storage area in Anchorage Park and
providing funding to Palm Beach County to incorporate aesthetic features and pedestrian amenities into
their design of the Prosperity Farms Road Bridge Replacement Project are distinctive investments for the
upcoming year.
These forthcoming investments will result in increased expenditures; however, rising property valuations
and sustained state and national economic growth will mitigate the impact of these projects on the annual
financial plan.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is intended to offer our citizens, taxpayers, customers, investors, and creditors a
comprehensive overview of the Village's finances, demonstrating the Village's accountability for the funds
it receives. If you have inquiries regarding this report or require further financial details, please reach out
to the Finance Department of the Village of North Palm Beach, located at 501 U.S. Highway 1, North Palm
Beach, Florida 33408.
BASIC FINANCIAL STATEMENTS
Statement of Net Position
September 30, 2024
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents 20,346,049$ 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
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
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
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
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
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
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
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
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
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
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
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
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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
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.
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
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
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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.
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%
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%
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.
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%
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
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 $
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
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%
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
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.
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
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.
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.
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
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).
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
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
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.
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.
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.
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.
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
PENSION AND OTHER POSTEMPLOYMENT BENEFIT TREND INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
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
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
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
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
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
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
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
GENERAL FUND
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
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
OTHER SUPPLEMENTARY INFORMATION
GENERAL FUND
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
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
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
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Public Safety Fund
Northlake Boulevard Fund
Recreation Fund
On-Behalf Pension Contributions
Capital Projects Fund
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
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
FIDUCIARY FUNDS
Pension Trust Funds
General Employees Pension Trust Fund
Fire and Police Officers Pension Trust Fund
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
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
PROPRIETARY FUND
(ENTERPRISE FUND)
Country Club Fund
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
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
THIS PAGE INTENTIONALLY LEFT BLANK
STATISTICAL SECTION
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
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
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
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
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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
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
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
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
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 $1,000 of assessed value.
Source:North Palm Beach: Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments
(1)Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
Overlapping Rates (1)
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
109
Percentage Percentage
of Total of Total
Village Net Village Net
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayers Value Rank Value Value Rank Value
Olen Residential Realty 46,088,968$ 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
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
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
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
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
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
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
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
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
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
OTHER REPORTS
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.
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
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.
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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.
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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
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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