2001 CAFR M1aS
v~
~ ~
.-"
. ~ ti -
, r
.
J ire `11 i~'~a,~ce a~
.Na~t.~i J a~~n J3
1
A ~ ~t - ~ ~
~,.^..-_
1 ~`F' t ;~~.7r~ gpy-"! .IIM P•~ ,~,~(}IS~j}! ry S i •.r"`~' ~ ~ l
i 2 .g ~ r `r ~
y f. ~*if ~~Z~i.~~ f~~( {3't ~K T ~ r~1i4.~~i. Qc
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 2001
J Pie `v ` c~
.II~~C~~ ~yC~L J ~C~r~~~ ~ ~ r
' ~
_ ~ ` ~ ~ ~
COMPREHENSIVE ANNUAL FINANCIAL REPORT
September 30, 2001
Prepared by:
Finance Department
Shaukat Khan
Director of Finance
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal vii
List of Principal Village Officials .........................:............................................................................................xvii
vi ~ ~
Organization Chart
GFOA Certificate of Achievement for Excellence in Financial Reporting xix
FINANCIAL SECTION
Independent Auditors' Report 3
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet -All Fund Types and Account Groups 6
Combined Statement of Revenues, Expenditures and Changes in
Fund Balances -All Governmental Fund Types .............................................................................................10
Combined Statement of Revenues and Expenditures -Budget
and Actual (Budgetary Basis) -General Fund ................................................................................................11
Statement of Revenues, Expenses and Changes in
Retained Earnings -All Proprietary Fund Types ...........................................................................................12
Combined Statement of Changes in Net Assets -All Pension Trust Funds ......................................................13
Statement of Cash Flows -All Proprietary Fund Types ....................................................................................14
Notes to Financial Statements ............................................................................................................................15
COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS:
Required Supplementary Information:
Schedule of Funding Progress -General Employees Retirement Fund 36
Schedule of Employer and State Contributions 37
Notes to Required Supplementary Information 38
General Fund:
Comparative Balance Sheets 40
Schedule of Revenues and Other Financing Sources -Budget and Actual 41
Schedule of Expenditures and Other Financing Uses -
Budget and Actual (Budgetary Basis) 45
Capital Projects Fund:
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual 64
Enterprise Fund:
Schedule of Revenues -Budget and Actual -Country Club Fund 66
Schedule of Expenses -Budget and Actual -Country Club Fund 68
Trust Funds:
Combining Balance Sheet -Trust and Agency Funds 70
Combining Statement of Plan Net Assets -All Pension Trust Funds 72
Combining Statement of Changes in Net Plan Assets -All Pension Trust Funds 73
Combining Statement of Changes in Assets and Liabilities -All Agency Funds 74
General Fixed Assets Account Group:
Schedule of General Fixed Assets - By Source 77
Schedule of General Fixed Assets - By Function and Activity 78
Schedule of Changes in General Fixed Assets - By Function and Activity 80
Contents iii
,1
' TALE O~ CONTENTS (Continued) ~ ,
I',
STATISTICAL SECTION ~
I
Table I General Governmental Expenditures by Function 85
Table II General Governmental Revenues by Source 86
Table III Property Tax Levies and Collections 88
Table IV Assessed Value of Taxable Property 89
Table V .Property Tax Rates -Direct .and Overlapping Governments ....................90 ~
Table VI Computation of Direct and Overlapping Bonded Debt -General
Obligation Bonds ........................................................................................................................91
Table VII Computation of Legal Debt Margin 93 ~
Table VIII Debt Related Statistics -Schedule of Revenue Bond Coverage -
General and Enterprise Funds 94 f ~ ~
Table IX Property Value, Construction, and Bank Deposits 96
Table X Principal Taxpayers 97
Table XI Miscellaneous Statistics 98 l
REQUIRED REPORTS
Report on Compliance and on Internal Control Over Financial Reporting
Based on an Audit of General Purpose Financial Statements Performed in
Accordance with Government Auditing Standards ..........................................................................................101
Management Letter .............................................................................................................................................103
J
I
~1
J
d~
Iv C®~,t~~t~
r~az.~~a~ .~.a~ca~:~n~~~~~Y
r
i
i
i
i
i
i
i
'i
i
i
i
i
i
i
i
i.
THE VII,LAGE OF
North Palm Beach
~~yPALr~~~4 Department of Finance
Village Hall • 501 U.S. Highway 1 • North Palm Beach, FL 33408 • (561) 841-3360 • Fax (561) 881-7469
January 29, 2002
Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Presented for your consideration and review is the Village's Cornprehensive Annual Financial Report for the
year ended September 30, 2001. This report was prepared by the Village's Finance Department. Responsibility
for both the accuracy of the presented data and the completeness and fairness of the presentation, including all
disclosures, rests with the Village. We believe the data, as presented, is accurate in all material respects, that it
is presented in a manner designed to fairly set forth the financial position and results of operations of the Village
as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader
to gain the maximum understanding of the Village's financial affairs have been included.
ORGANIZATION AND CONTENT
The organization and content of this report is based primarily on the financial reporting standards set by the
Governmental Accounting Standards Board (GASB) and recommendations of the Government Finance Officers
Association of the United States and Canada. It includes all of the funds and account groups of the Village and,
in accordance with GASB Codification of Governmental Accounting and Financial Reporting Standards, Sec-
tion 2100, "Defining the Reporting Entity", includes only those activities over wl-iich tare Village is financially
accountable.
The accompanying financial statements report the financial results of all services provided by the Village in-
cluding public safety (police, fire and emergency medical services), sanitation, cultural and recreational services
(parks, marina, library and community center), a Village operated country club,. public improvements, planning,
zoning and general administrative services.
The report is designed to meet the needs of a wide variety of readers and is divided into four principal sections.
These sections consist of:
Introductory Section -This section includes the names of both elected and appointed officials who are re-
sponsible for policy matters and the management of the Village's affairs, an organizational chart of key
management positions, the Certificate of Achievement for Excellence in Financial Reporting awarded to the
Village by the GFOA, and this transmittal letter which discusses the major factors that affected the operating
results for the year.
Financial Section -The financial section includes the general purpose financial statements and the com-
bining and individual fund and account group financial statements and schedules, as well as the independent
auditors' report on these financial statements and schedules.
Mtroductory Section vii
Statistical Section -This section highlights multiple year comparative trend data, and physical, economic,
social and political characteristics of the Village. ~
Other Reports -This section includes the independent auditors' report on compliance and on internal con-
trol over financial reporting and comments to management. l
THE !TILLAGE
The Village of North Palm Beach is primarily a residential community having been incorporated as a political
subdivision of the State of Florida in 1956. The registered population of the Village is approximately 12,000,
which increases to approximately 18,000 during the winter months by residents who list their northern homes as
their official place of residence. Residents are generally in the middle to upper income brackets.
Located in the northeastern quadrant of Palm Beach County, Florida, the Village has an unusual amount of wa-
terfront property created by a number of lakes, canals and the Atlantic Ocean.
The governing body of the Village consists of a five member Village Council, each of whom is elected for two- I
year overlapping terms. Day to day affairs of the Village are under the leadership of a Village Manager who is
appointed by the Council. ~
SIGNIFICANT CURRENT YEAR ACCOMPLISHMENTS
Community Planning l
I
• Waterway dredging program is in progress.
ll
• Renovation of the Village Hall is in progress.
I
Public Safety
The following acquisitions were made by the Public Safety Department during the year:
• Two new patrol cars and two motorcycle units for the Police Division.
• Purchased various new equipment and upgraded the existing equipment for the Public Safety Department. ~
Public Services
l
• Expended $95,000 on street resurfacing and paving. I
• Replaced a packer truck, two 3-wheel dumpsters, two utility trucks, and purchased various machinery and
equipment to replace old and obsolete equipment.
Culture & Recreation
• Added new books and ublications in the amount of approximately $58,000 and an audio & video collection
P
of $4,000 to the Library.
• Spent $41,000 on playground equipment and ball field improvements.
• Spent $36,000 on various public events.
viii Introductory Section
Country Club
• Spent over $27,000 to add, replace and upgrade machinery and equipment for Golf Course Maintenance.
• Expended $13,000 to rebuild driving range tees.
Finance
The Finance Department was the recipient of the Government Finance Officers Association's coveted (GFOA)
Certificate of Achievement for Excellence in Financial Reporting for its fiscal year 2000 Comprehensive Annual
Financial Report (CAFR). This is the thirteenth consecutive year the Village has received this award. The Vil-
lage's CAFR must meet a number of stringent financial reporting requirements in order to qualify for the award.
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.
The financial records for its Enterprise Fund (i.e., the Country Club operation) are maintained on the full accrual
basis of accounting similar to that followed by commercial enterprises.
In developing and evaluating the Village's financial and accounting system, consideration is given to the ade-
quacy of internal accounting controls. Internal accounting controls 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 ac-
counting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial
transactions.
Budgetary control is maintained at the subfunction level by the encumbrance of estimated purchase amounts
prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of subfunction
balances are not released until additional appropriations are made available. Open encumbrances are reported as
reservations of fund balance at September 30, 2001.
General Government Operations
Revenues
Revenues and expenditures for general government functions are accounted for in the general fund. Revenues
from general governmental operations totaled $11,034,102 in fiscal year 2001, a increase of 12.1% from the
previous fiscal year. Ad valorem taxes represent the single most important source of revenue (45.5% of general
revenue sources) to the Village. The ad valorem tax millage rate was 5.75 mills for the 2001 fiscal year. This is
an increase of 2.7%, when compared with the prior year. Property valuations of approximately $901,000,000
for 2001 increased approximately $97 million, or 12% more than the prior year.
Introductory Section ix
l
The Village's collection rate of ad valorem taxes remains strong at 96.6% of current assessments. This is un- 1
changed when compared- with the prior year. We also collected a small portion of the previous year's delinquent
taxes.
The increase in revenues is mainly attributable to ad valorem and telecommunication taxes and an increase in ~ j
building permit revenues.
The amount of revenues from various sources and the variances from last year are shown in the following table:
Increase Percent
Percent (Decrease) increase ~ '
Revenue Sources Amount of Total from 2000 (Decrease)
Taxes $ 7,686,039 70% $ 891,790 9.0 %
Licenses and permits 917,166 8% 160,747 1.6 % ~ ,
Intergovernmental revenue 1,336,664 13% 63,554 .6 %
Charges for services 492,830 4% 55,019 .6 %
Fines and forfeitures 244,921 2% 95,231 1.0
Interest income 247,931 2% (42,482) (.4)%
Miscellaneous 108,551 1% (30,868)(3)%
$ 11,034 ] 02 100% $ 1,192,991 12.1 %
Expenditures
Expenditures for general governmental purposes totaled $10,399,389, an increase of approximately 2.6% from
2000.
Increases and decreases in levels of expenditures for major functions of the Village when compared with the
preceding year are shown in the following tabulatian:
Increase Percent
Percent (Decrease) Increase
Function Amount of Total from 2000 (Decrease)
General government $ 1,220,944 12% $ 9,541 .1 % 1
Public safety 3,701,807 36% 509,831 5.0 % 1
Public services 2,918,996 28% 112,855 1.1 %
Leisure services 1,038,304 10% 46,701 .5 %
Other 303,178 3% (139,316) (1.4)%
Capital outlay 433,970 4% (293,288) (2.9)%
Debt service 782,190 7% 16,893 .2 %
$ 10,399,389 100% $ 263,217 2.6 %
Fund Balance
Unreserved fund balance continues to be the focus of financial planning for the future. At September 30, 2001,
the Village had a total General Fund balance of $4,605,678. Of that amount, $2,292,742 was unreserved, unap-
propriated, and available for future appropriation or use, which is approximately 10.6% more than last year.
Last year's unreserved balance carried forward to 2001 was $2,072,911. The following schedule highlights the
major components of the 2001 general fund balance:
~ i
x IntroductAry Section
Total fund balance $ 4,605,678
Less non-expendable assets and encumbrances:
Inventories 30,722
Prepaid items and deposits applicable to next year 3,083
Restricted assets 96,905
Encumbrances (current year appropriations) 42,616
Amount designated for subsequent year 2,139,610
Total net available spendable resources $ 2,292,742
The unreserved, unappropriated portion of fund balance represents approximately 18°Io of next year's budgeted
expenditures and is adequate to maintain general fund operations through December 2001, when the property
tax revenues are received.
Proprietary Fund (Country Club Activities)
The Village's sole proprietary fund is represented by the operation of the North Palm Beach Country Club.
Revenues (both operating and nonoperating) totaled $2,497,532. for 2001, which represented an increase of ap-
proximately $144,000 (6.1°Io) from last year. Total expenses were $2,732,736 for 2001, an increase of approxi-
mately $25,000 (.09%) from the prior year. The net loss decreased by approximately $120,000.
At September 30, 2001, the Club's net current assets were $(205,884), representing an increase of $132,782
from last year. Current assets and related current obligations at September 30, 2001 and 2000, consist of the
following:
2001 2000
Current assets:
Cash and cash equivalents $ 114,861 $ 266,731
Accounts receivable, members 61,303 53,899
176,164 320,630
Current liabilities:
Accounts payable and other liabilities 62,144 110,11.1
Compensated absences payable 78,807 94,176
Current portion on long-term debt 134,724 304,076
Miscellaneous deposits 7,000 7,000
Deferred revenue 99,373 143,933
382,048 659,296
Net current assets (working capital) $ (205.884) $ (338,666)
Pension Fund
The Village sponsors two pension funds for its employees: the general employees' fund, and the police officers'
and firefighters' fund. The Village contributed $447,128 to the general employees' retirement fund and.$25,607
to the police officers' and firefighters' retirement fund during the year. The State of Florida also contributed
$108,201 to the police officers' and firefighters' fund. The State does not contribute to the general employees'
fund. Losses from invested assets (including net depreciation in fair values) of both funds amounted to
$(720,898). Expenses totaled $807,924 which included $751,572 paid to retired employees or their beneficiar-
ies. At September 30, 2001, the fair market value of the funds' assets was approximately $12,150,000.
Cash Management
The Village uses pooled cash procedures, which allow better control over funds and greater investment flexibil-
Introductory Section xi
ity and return. Except for the pension trust funds, all other governmental and proprietary funds are deposited in
one central account with a financial institution registered with the State Treasurer as a qualified public deposi- j
tory. Cash balances in excess of current needs are invested in repurchase agreements through the Village's pri-
mary depository or the State Board of Administration's Investment Account. Interest earned on invested bal-
ances resulted in a yield of approximately 4.9°Io this year which is allocated to each fund based on their average ~ ~
monthly balance. '
Excess cash of the pension plans is controlled by the pension boards who have hired professional money man-
agers responsible for managing the assets of those funds.
®ebt Administration l
~I
The Village entered into lease agreements to finance the purchase of ambulances and a fire truck. All current
maturing obligations of $68,268 in the general fund were timely met and are in compliance with all lease cove- '
nants and resolutions in connection with these obligations.
i
The Village issued a $6,560,000 promissory note to First Union National Bank to finance the acquisition, con-
struction, equipping, and improving of a public safety building, a community center, and a recreation building.
A portion of the proceeds were also used to refinance an existing loan in the enterprise fund. The promissory
note is secured by franchise fees and public service taxes of the Village. The Village made interest and principal
payments of $602,630, consisting of $511,144 in the general fund and $91,486 in the enterprise fund, on the
note in a timely manner. The Village is iri compliance with all loan covenants and resolutions in connection
with this obligation.
The Village issued a $860,000 promissory note to First Union National Bank to refinance a note incurred for the
renovation of the Village's Country Club restaurant and clubhouse. A portion of the proceeds were also used to
finance various capital expenditures in the general fund. The promissory note is secured by franchise fees and
public service taxes. The Village made principal and interest payments of $105,103, consisting of $44,954 in
the general fund and $60,149 in the enterprise fund, on the note in a timely manner. The Village is in compli-
ance with all loan covenants and resolutions in connection with this obligation.
The Village issued a $2,800,000 promissory note to Bank of America to finance the renovation of Village Hall,
construction of the Anchorage Park parking lot, acquisition and construction of the North Sub Station, and the
canal dredging capital project. The promissory note is secured by franchise fees and public service taxes. There l li
were no principal and interest payments due during the fiscal year.
The Village issued a $600,000 promissory note to Fidelity Federal Savings to finance capital expenditures for 1
the completion of the Public Safety facility. The promissory note is secured by franchise fees and public service 1
taxes of the Village. The Village made interest and principal payments of $132,774 on the note in a timely
manner. The Village is in compliance with all loan covenants and resolutions in connection with this obligation.
The Village issued a promissory note to Wachovia Bank to finance the purchases of automobiles. A portion of
the proceeds was also used to finance the purchase of equipment in the enterprise fund. The promissory note is
unsecured. The Village made principal and interest payments of $31,709, consisting of $26,759 in the general
fund and $4,950 in the enterprise fund, on the note in a timely manner. The Village is in compliance with all
loan covenants and resolutions in connection with this obligation.
Risk Management
The Village is a participating member in two self insured risk management pools to provide property and casu-
alty coverage for the Village and group medical coverage for the Village employees. The Village is responsible
for its own claims and losses and group medical coverage, unlike the property casualty coverage, where all of
the participating pool members share the cost.
xii Introductory Section `
The Village provides and pays for group medical insurance coverage to all Village employees. The Village also
provides family coverage at a reduced cost.
Due to the increasing high cost of group health coverage, every effort is made by the Village to reduce their
costs while still providing adequate coverage to the Village employees and their families. Total claims for 2001
were approximately $485,000.
In fiscal year 2000-01, the Village contributed approximately $531,000 into the risk management pool for prop-
erty casualty coverage and workers compensation and approximately $580,000 for group health.
INITIATIVES AND FUTURE PROJECTS
Promenade Shoppes of Northlake
The Promenade Shoppes of Northlake continues to progress in its development. The latest application for one
of the out parcels to be developed is a Wendy's hamburger restaurant. The final developed plan has been ap-
proved and building permits are in the process of being issued for the construction of that facility. It should be
located on one of the out parcels along Northlake Boulevard.
Northlake Boulevard Corridor Task Force
The Village of North Palm Beach participates with the Town of Lake Park, the City of Palm Beach Gardens,
and Palm Beach County as part of the Northlake Boulevard Corridor Task Force (Task Force). The Task Force
meets once a month and has steadily been progressing toward awarding a contract to a landscape architect for
the purpose of installing various improvements on Northlake Boulevard from U.S. Highway #1 to Military Trail.
In addition, the Task Force is steadily progressing toward an overlay zoning code where each municipality and
the County will adopt appropriate zoning changes to the Northlake Boulevard Corridor for the purpose of im-
proving property values on the Boulevard.
Village Hall Renovation
As of this writing, the Council has completed the concept and design phase of the Village Hall Renovation. The
bids for the construction should be awarded in early 2002. The latest estimated construction cost including the
architectural work is around $1,400,000. The bid for temporary office trailers is going out before the start of the
new calendar year and should be awarded in January or February 2002. The trailers will be used by the staff as
temporary offices during the Village Hall Renovation project.
Master Recreation Plan -Anchorage Park
The Master Recreation Plan has been reviewed by the Recreation Advisory Board, and progress continues on
implementing that plan. Most development issues in the park have been placed on hold while the old sewage
plant continues to be used as a filtering device for the canal and waterway-dredging project. Due to the magni-
tude of the dredging project and the use of the old sewage plant property, the Village is unable to use that prop-
erty until that project is completed.
U.S. Highway #1 Corridor Study
The Florida Department of Transportation has completed its major redevelopment study of the U.S. Highway #1
corridor running through North Palm Beach. It is our understanding that the Florida Department of Transporta-
tion is currently completing construction drawings and designs in preparation of issuing bids for the actual con-
struction. The intent of the program is to make improvements in the area of landscaping, brickpavers, signaliza-
tion, signage, etc.
Introductory Section xiii
I
Prosperity Farms Road Task Force I
The Prosperity Farms Road Task Force was organized for the purpose of developing a redesign of Prosperity
Farms Road to create a traffic calming effect through the Village. The end result is to calm traffic and turn the
road into more of a neighborhood street than its current use as a thoroughfare. The Task Force completed an
interlocal agreement between the Village of North Palm Beach and Palm Beach County. The County has infor-
mally committed $1,000,000 to the project. A consultant was retained by the Task Force to conduct feasibility
analysis and provide recommendations on how to best go about achieving the traffic calming. That report was
completed and presented to the Task Force. The Task Force in turn called for a Public Hearing/Publc Informa-
tion Meeting to go over the options recommended by the consultant. This too has been completed. The Task j
Force is now in the stage of deciding whether to keep the road a county road or recommend taking over the road
from the county and making it a municipal street. The impact is such that if it remains a county road certain
standards will be accomplished in the redesign and the county will continue to maintain the road; however, if the
Village takes over the road it would meet different standards and the Village would be required to maintain the
road. Currently, cost estimates are being developed to determine the maintenance cost over the next ten to
twenty years.
Canal Dredging
At the time of this writing the canal dredging is underway. The bid was awarded to the contractor for the pur- ~ ,
pose of dredging certain residential canals and the North Palm Beach Waterway. The project is divided into two
phases, phase one is primarily the North Palm Beach Waterway with the adjoining canals and the second phase
are those canals that feed into the north end of Lake Worth. The old Seacoast Utility Authority sewage plant 1
was sold to the Village a number of years ago for $10.00. That sewage plant property was converted into asilt- )
ing filter for the dredging project. This was to satisfy various environmental permitting requirements for the
dredging project and has proven to be very successful. Once completed, the dredging is anticipated to enhance )
the navigability of the waterways throughout the Village and indirectly enhance the values of the properties ad- J
jacent to the waterways and the canals.
Public Safety North Substation
There has been created a North Substation Committee comprised of the Mayor, the Village Manager, the Public
Services Director and the Public Safety Director for the purpose of examining acquisition of property to locate a
new building. The committee commissioned an appraisal of three options, which included the Taurus property, J
which is currently the Enterprise Rent-A-Car property; also to appraise the Monastery property with two con-
figurations fronting on U.S. Highway #1. The committee has focused on the Monastery property and the two 1
configurations. The committee is currently in negotiations with the legal representatives of the Monastery re- J
garding the purchase of that property. Presently, the Monastery is obtaining its own appraisal and once received
will report back to the committee for continued negotiations. There is located in the middle of the property a l
sewage lift station owned and operated by Seacoast Utility Authority (SUA), and that lift station needs to be re- J
located in order to make the property usable for a substation. Once the property is acquired, then the committee
will move into architectural design and construction. It is anticipated that the property will be acquired in fiscal
year 2001-2002, and architectural work can begin at the end of the same fiscal year with the prospect of con- ,
struction starting in fiscal year 2002-2003.
ECONOMIC ®IJTL®®K
Property Values
Staff conducted an analysis of the property values over the last ten years and came to the following conclusions:
with the exception of the most recent two years, the property values in the Village have increased generally
twenty to thirty million dollars per year; over the past two years, they have increased almost one hundred mil-
xiv Introductory Section
lion dollars each year. This increase in property values is a result of completion of new construction at Prosper-
ity Harbor development north of Sanctuary Cove on Prosperity Farms Road and numerous rebuilt units through-
out the community. The large jump in property values over the last two years included the Winn Dixie Shop-
ping Center on U.S. Highway #1 north of Parker Bridge. What is interesting regarding property values is for all
practical purposes none of the Watermark Communities, Inc. (WC>) development has come on the property tax
rolls as of this writing. A couple of the models that were completed were placed on the tax rolls, but as far as
the basic construction of the 110 residential units in that development, none of them have been placed on the tax
rolls yet. That means the Village will probably experience another two or three good years of healthy property
value increases.
Annexation.
The Village currently has an annexation committee conducting the analysis and capability of the Village to an-
nex in certain neighbors around the Village. The primary areas are Lost Tree, Hidden Key and Portage Landing.
A preliminary analysis indicates that it is becoming very advantageous financially for those communities to an-
nex into the Village. The committee has retained a consultant to answer the statutory questions regarding the
ratio of residential to commercial properties within these developments. Once the financial analysis and the
consultant's report are completed, then the committee will be prepared to submit its recommendation to the Vil-
lage Council with the expectation that the Village go forward with an annexation referendum within the next
few months.
OTHER INFORMATION
Independent Audit
As required by Florida Statutes, an audit of the books of account, financial records, and transactions of all de-
partments of the Village has been conducted by a firm of independent Certified Public Accountants. The report
of Haas, Diaz & Co., Certified Public Accountants, on page three of this report contains their opinion as to the
fair representation of the Village's financial statements. The Village continues to receive an unqualified opinion
on its financial statements.
Awards
The Government Finance Officers Association of the United States and Canada awarded a Certificate of
Achievement for Excellence in Financial Reporting to The Village of North Palm Beach, Florida for its compre-
hensive annual financial report for the fiscal year ended September 30, 2000. 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, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report whose contents conform to program standards. The
report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The Village of North Palm Beach has re-
ceived aCertificate of Achievement for the last thirteen consecutive years. We believe our current report con-
forms to Certificate of Achievement Program. requirements, and we are submitting it to GFOA to determine its
eligibility for another certificate.
Acknowledgments
The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated
services of the Village Manager's and Finance Department's staffs. We would like to express our appreciation
Introductory Section xv
to all members of both departments who assisted and contributed to its preparation. We thank the Mayor and
Village Louncil for their interest and support in planning and conducting the financial operations of the Village
in a responsible and progressive manner.
lZespectfully submitted,
~ eI
Dennis W. Kelly
Village Manager
Khan
Finance Director
1'
I
1
1
1 I
1
~ i
~l
xvi Intr®duct®ry Secti®n
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
PRINCIPAL VILLAGE OFFICIALS
SEPTEMBER 30, 2001
TITLE NAME
Mayor David B. Norris
Vice Mayor Edward M. Eissey, Ph.D.
President Pro Tem Donald G. Noel
Council Member Charles R. O'Meilia
Council Member Joseph A. Tringali
Village Manager Dennis W. Kelly
Director of Finance Shaukat Khan, CPA
Village Clerk Kathleen F. Kelly
Introductory Section xvii
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Organization Chart
0
~ September 30, 2001
es
-~
rc
e~
The Residents
VILLAGE BOARDS
• COUNTRY CLUB ADVISORY
• CODE ENFORCEMENT
Village • LIBRARY ADVISORY
Council • RECREATION ADVISORY
• PLANNING COMMISSION
µ • BOARD OF ADJUSTMENT
• CONTRACTORS
• PENSION
Village Village Village
Attorney Manager ~ Clerk
Finance Public Public ~ Recreation Library Country Club
Services Safety
~ _ .
Certificate of
Achievement
for Excellence
in Financial
Ae ortin
~ ~
Presented to
Village of North Palm
Beach, Florida
For its Comprehensive Annual
Financial 13eport
for the Fiscal Year Ended
September 30, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~gE DfFj~ ~
UNRE03TATES y
u`+i tiND yp
~ c~N~ ~ Pr sident
CARPORkTlON
txic~ss ~Ci
Executive Director
Introductory Section xix
`l
1
l
This page intentionally left blank.
1
`l
l
. i
i l
:1
J
xx Introductory section 1
1tQI.]L~~S `IF~I~hdt114I~
r
i
i
i
i
i
i
i
i
i
i
i
i
i
i
i.
i
i
aas9i~z~~~o.
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited the accompanying general purpose financial statements of The Village of North Palm
Beach, Florida, as of and for the year ended September 30, 2001, as listed in the table of contents. These
general purpose financial statements are the responsibility of The Village of North Palm Beach, Florida's
management. Our responsibility is to express an opinion on these general purpose financial statements
based on our audit.
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. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the general purpose financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the general purpose financial statements. An audit also includes assessing the account-
ing principles used and significant estimates made by management, as well as evaluating the overall gen-
eral purpose financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material
respects, the financial position of The Village of North Palm Beach, Florida, at September 30, 2001, and
the results of its operations and the cash flows of its proprietary fund for the year then ended in confor-
mity with accounting principles generally accepted in the United States of America.
As described in Note 12 to the financial statements, the Village of North Palm Beach, Florida adopted the
provisions of Governmental Accounting Standards Board Statement No. 33, Accounting and Reporting
for Nonexchange Transactions, as of October 1, 2000.
In accordance with Government Auditing Standards, we have also issued a report dated January 9, 2002,
on our consideration of The Village of North Palm Beach, Florida's internal control over financial report-
ing and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be read in conjunction with this report in considering the results of our audit.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements
taken as a whole. The information identified as Combining, Individual Fund, and Account Group State-
ments and Supplementary Schedules in the table of contents is presented for purposes of additional analy-
sis and is not a required part of the general purpose financial statements of The Village of North Palm
1601 Belvedere Road
Suite 200, East
West Pahn Beach, FL 33406-1595
(561) 686-1551 Fax: (561) 471-1210
Financial Section 3
I
i
r
j
1
Beach, Florida. Such additional information has been subjected to the auditing procedures applied in the au-
dit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects
in relation to the general purpose financial statements taken as a whole.
The information shown in the statistical section listed in the table of contents has not been subjected to audit-
ing procedures sufficient to enable us to express an opinion as to the fairness of all information included
therein and, accordingly, we do not express an opinion thereon. -
~ /
Haas, Diaz & Co.
Certified Public Accountants f
January 21, 2002 j
'1
:J
I
I
~J
~1
4 Financial Section
This page intentionally left blank.
Financial Section 5
r
THE VILLAGE OF NORTH FALM REACH, FLORIDA ~ I
combined Balance Sheet -,411 fund 1
ypes and Account vroups
September 30, 2001
(With comparative totals for September 30, 2000)
Governmental Proprietary
Fund Types Fund Type
Capital
General Projects Enterprise
Assets and Other Debits
Assets:
Cash and cash equivalents $ 4,263,875 $ 2,855,814 $ 114,861
Investments - - - r 1
Restricted cash 96,905 - - J
Receivables:
State shared revenues 21,037 - -
Utility taxes 351,978 - -
Accounts 132,015 - 61,303
Special assessments 7,341 - - ` i
Interest - - - J
Inventories 30,722 - 37,596
Prepaid items 1,083 - -
Deposits 2,000 - -
Land, buildings and equipment - - 3,024,093
Other Debits: 1
Amount to be provided for retirement of l
general long-term debt - - -
Total assets and other debits $ 4,906,956 $ 2,855,814 $ 3,237,853
~1'
~l
~1
-
6 Financial Section
~1
Fiduciary Totals
Fund Types Account Groups (Memorandum Only)
Trust General General
& Fixed Long-Term
Agency Assets Debt 2001. 2000
$ 594,229 $ - $ - $ 7,828,779 $ 4,994,462
11,733,142 - - 11,733,142 12,078,005
_ - - 96,905 55,108
_ _ - 21,037 84,057
_ - - 351,978 121,637
21,322 - - 214,640 194,653
_ _ - 7,341 12,867
42,955 - - 42,955 35,951
_ - - 68,318 58,660
_ - - 1,083 899
_ _ _ 2,000 2,000
- 15,332,103 - 18,356,196 18,452,422
_ - 8,903,401 8,903,401 6,355,269
$ 12,391,648 $ 15,332,103 $ 8,903,401 $ 47,627,775 $ 42,445,990
Continued on the following page...
Financial Section 7
r
THE VILLAGE OF NORTH PALM BEACH, FLORIDA r ~
Combined Balance Sheet -All Fund Types and Account Groups (Continued) J
September 30, 2001
(With comparative totals for September 30, 2000) ~ ~ I
Governmental Proprietary
Fund Types Fund Type
Capital f
General Projects Enterprise
Liabilities, Equity and Other Credits
Liabilities:
Accounts payable and other liabilities $ 204,969 $ 39,838 $ 62,144 ,
Compensated absences payable - - 78,807
Deferred revenue 90,718 - 99,373
Miscellaneous deposits 5,591 - 7,000
Loans payable - - 785,781
Due to other agencies - - -
Capital leases payable - - -
Total liabilities 301,278 39,838 1,033,105 ` I
Equity and Other Credits: 1
Investment in general fixed assets - - -
Contributed capital - - 152,438
Retained earnings:
Reserved - - 44,538
Unreserved - - 2,007,772
Fund balances:
Reserved for inventories 30,722 - -
Reserved for prepaid items and deposits 3,083 - -
Reserved for restricted assets 96,905 - -
Reserved for encumbrances 42,616 271,340 -
Reserved for employees' pension benefits - - -
Unreserved:
Designated for subsequent year 2,139,610 - -
Undesignated 2,292,742 2,544,636 -
Total equity and other credits 4,605,678 2,815,976 2,204,748
Total liabilities, equity and other credits $ 4,906,956 ~ 2,855,814 $ 3,237,853 4
See accompanying notes to ftnancial statements. I
~1
l
a
1
8 Financial section
Fiduciary Totals
Fund Types Account Groups (Memorandum Only)
Trust General General
g~ Fixed Long-Term
Agency Assets Debt 2001 2000
$ 13,637 $ - $ - $ 320,588 $ 447,850
_ - 590,606 669,413 669,743
_ _ - 190,091 168,665
_ _ _ 12,591 12,361
_ - 8,067,736 8,853,517 6,450,736
241,291 - - 241,291 298,174
_ - 245,059 245,059 _298,552
254,928 - 8,903,401 10,532,550 8,346,081
- 15,332,103 - 15,332,103 15,03 8,422
_ _ - 1.52,438 152,438
_ _ _ 44,538 67,580
_ _ - 2,007,772 2,219,934
_ _ _ 30,722 28,532
_ _ - 3,083 2,899
_ _ _ 96,905 55,108
_ _ _ 313,956 324,594
12,13 6,720 - - 12,136,720 12,959,071
_ _ - 2,139,610 1,005,415
_ _ - 4,837,378 2,245,916
12,136,720 15,332,103 - 37,095,225 34,099,909
$ 12,391,648 $ 15,332,103 $ 8,903,401 $ 47,627,775 $ 42,445,990
Financial Section 9
I
THE VILLAGE OF NORTH PALM EEACH, FLORIDA
Combined Statement of Revenues, Expenditures and Changes in Fund ~alances I
All Governmental Fund Types
Year Ended September 30, 2009
(With comparative totals for the year ended September 30, 2000) r
' Governmental Totals
Fund Types (Memorandum Only)
Capital
General Projects 2001 _ _ 2000
Revenues: r)
Taxes $ 7,686,039 $ - $ 7,686,039 $ 6,794,249 J
Licenses and permits 917,166 - 917,166 756,419
Intergovernmental 1,336,664 - 1,336,664 1,273,110
Charges for services 492,830 - 492,830 437,811
Fines and forfeitures 244,921 - 244,921 149,690
Interest 247,931 50,400 298,331 301,071 1
Miscellaneous 108,551 - 108,551 139,419 J
Total revenues 11,034,102 50,400 11,084,502 9,851,769
Expenditures: `
Current:
General government 1,220,944 - 1,220,944 1,211,403
Public safety 3,701,807 - 3,701,807 3,191,976 l
Public services 2,918,996 - 2,918,996 2,806,141 1
Leisure services 1,038,304 - 1,038,304 991,603
Other 303,178 - 303,178 442,494
Capital outlay 433,970 207,429 641,399 808,841
Debt service:
Principal 526,907 - 526,907 488,276 1
Interest and fiscal charges 255,283 - 255,283 277,021 J
Total expenditures 10,399,389 207,429 10,606,818 10,217,755
Excess (deficiency) of revenues
over (under) expenditures 634,713 (157,029) 477,684 (365,986)
Other financing sources (uses): `
Loan proceeds 260,000 2,800,000 3,060,000 112,000
Sale of surplus equipment 8,300 - 8,300 4,160
Transfers in - - - 48,290
Transfers out - - - (48,290)
Total other financing
sources (uses) 268,300 2,800,000 3,068,300 116,160 ` ~ ~
Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing uses 903,013 2,642,971_ 3,545,984 (249,826)
Fund balances, beginning of year, as restated 3,702,665 173,005 3,875,670 3,912,290
Fund balances, end of year $ 4,605,678 $ 2,815,976 $ 7,421,654 $ 3,662,464 ` l
See accompanying notes to financial statements. J
~ i
1
10 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combined Statement of Revenues and Expenditures -Budget
and Actual (Budgetary Basis) -General Fund
Year Ended September 30, 2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues:
Taxes $ 7,476,155 $ 7,686,039 $ 209,884
Licenses and permits 539,260 917,.166 377,906
Intergovernmental 1,264,000 1,336,664 72,664
Charges for services 462,790 492,830 30,040
Fines and forfeitures 118,800 244,921 126,121
Interest 230,000 247,931 17,931
Miscellaneous 82,850 108,551 25,701
Total revenues 10,173,855 11,034,102 860,247
Expenditures:
Current:
General government 1,342,037 1,223,114 118,923
Public safety 4,001,018 3,633,884 367,134
Public services 3,060,628 2,874,732 1.85,896
Leisure services 1,097,331 1,021,783 75,548
Other 363,019 303,178 59,841
Capital outlay 469,237 278,530 190,707
Debt service:
Principal 527,000 526,907 93
Interest and fiscal charges 334,000 255,283 78,717
Total expenditures 11,194,270 10,117,411 1,076,859
Excess (deficiency) of revenues over
(under) expenditures (1,020,415) 916,691 1,937,106
Other financing sources:
Loan proceeds - 260,000 260,000
Sale of surplus equipment 1,000 8,300 7,300
Total other financing
sources 1,000 268,300 267,300
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
and other financing uses $ (1,019,415) $ 1,184,991 $ 2,204,406
See accompanying notes to fznancial stateme~its.
Financial Section 11
THL VILLA(9E OF NORTH PALM ~€ACH, FLORIDA ~
Statement of Revenues, Expenses and changes in Retained Earnings
All Proprietary Fund Types
Year Ended September 30, 2001
Enterprise
Fund
Revenues: l
Charges for services ~ 2,335,795 1
Miscellaneous 124,549
Total operating revenues 2,480,344
Expenses:
Sports activities 1,665,676
Clubhouse 219,927
Administrative and general 383,015
Depreciation 290,159
Total operating expenses 2,558,777
Operating loss (78,433) ~ l
Nonoperating revenues (expenses): 11
Interest income 17,188
Interest expense (45,810) ' 1
Loss on disposal of fixed assets (128,149) J
Total nonoperating
revenues (expenses) (156,771) `
Net loss (235,204) J
Retained earnings, beginning of year 2,287,514
Retained earnings, end of year $ 2,052,310
Retained earnings end of year:
Reserved $ 44,538 J
Unreserved 2,007,772
$ 2,052,310 1
See accompanying notes to financial statements. J
12 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combined Statement of Changes in Net Assets
All Pension Trust Funds
Year Ended September 30, 2001
Pension
Trust
Funds
Additions:
Contributions:
Employer $ 472,735
State of Florida 108,201
Plan member 125,535
Total contributions 706,471
Investment income:
Interest 175,890
Dividends 232,354
Net depreciation in fair value of investments (1,049,693)
Investment expense (79,449)
Net investment loss (720,898)
Total additions (14,427)
Deductions:
Administration 56,352
Benefits 751,572
Total deductions 807,924
Net decrease (822,351)
Net assets held in trust for pension benefits, beginning of year 12,959,071
Net assets held intrust for pension benefits, end of year $ 12,136,720
See accompanying notes to~nancial statements.
Financial Section 13
,-
i
THE VILLAGE OF NORTH PALM EEACH, FLORIDA
Statement of Cash F/ows
All Proprietary Fund Types
Year Ended September 30, 2009
Enterprise
Fund
Cash flows from operating activities:
Cash received from customers $ 2,303,831
Cash payments to suppliers for goods and services (1,114,886)
Cash payments to employees for services (1.,224,535) r
Other operating cash receipts 124,549
Net cash provided by operating activities 88,959 i
-~
Cash flows from capital and related financing activities: j
Loan proceeds 600,000
Principal repayments (783,805)
Interest paid on debt (45,810)
Acquisition of capital assets (28,402)
Net cash used in capital and related financing activities (258,017)
Cash flows from investing activities:
Interest on investments 17,188
Net decrease in cash and cash equivalents (151,870)
Cash and cash equivalents, beginning of year 266,731
Cash and cash equivalents, end of year $ 114,861
Reconciliation of operating loss to net cash provided by
operating activities: ` J
Operating loss $ (78,433)
Adjustments to reconcile operating loss to net
cash provided by operating activities:
Depreciation expense 290,159
Increase in accounts receivable (7,404) ;
Increase in inventories (7,468)
Decrease in accounts payable (47,966)
Decrease in deferred revenue (44,560)
Decrease in compensated absences (15,369) `
Total adjustments 167,392 ~
Net cash provided by operating activities $ 88,99
Noncash capital and financing activities:
Book value of assets disposed $ 310,374
See accompanying notes to financial statements.
~1
I
14 Financial Sectioro I
LJ
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
(1) THE 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, ca-
nals and lagoons. The Village's nonseasonal population consists of approximately 12,000 residents which in-
creases 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 responsi-
ble for legislative and fiscal control of the Village.
As required by generally accepted accounting principles, these general purpose financial statements present the
government and its component units. Component units are legally separate entities for which the primary gov-
ernment is considered to be financially accountable and for which the nature and significance of their relation-
ship with the primary government are such that exclusion would cause the Village's combined financial state-
ments to be misleading or incomplete. The primary government is considered financially accountable if it ap-
points avoting majority of an organization's governing body and imposes its will on that organization. The
primary government may also be financially accountable if an organization is fiscally dependent on the primary
government, regardless of the authority of the organization's governing board.
Based on the application of the criteria set forth by the Governmental Accounting Standards Board ("GASB"),
management has determined that no component units exist which would require inclusion in this report. Fur-
ther, the Village is not aware of any entity that would consider the Village to be a component unit.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounts of the Village are organized on the basis of funds and account groups, each of which is considered
a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets and other debits, liabilities, fund equity and other credits, revenues, and expen-
ditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds
based upon the purposes for which they are to be spent and the means by which spending activities are con-
trolled. The various funds and account groups are reported by generic classification within the financial state-
ments as follows:
Governmental Fund Types
General Fund -used to account for all financial resources applicable to the general operations of the Village
government except those required to be accounted for in another fund.
Capital Projects Fund -used to account for resources principally provided by general long-term debt and used
for the acquisition or construction of major capital facilities other than those financed by proprietary funds.
Proprietary Fund Type
Enterprise Fund -used to account for operations that provide services on a user charge basis to the public and
for activities where the periodic measurement of net income is deemed appropriate for capital maintenance, pub-
lic policy, management control, accountability or other purposes. Proprietary fund activities and basis of ac-
Financial Section 15
i
~l ~
~I
`THE VILLAGE ®F N®I~TH BALM BEACH FL®RI®A ~ 1
Notes to Financial Statements 9 ~ {
September 30, 2001
counting are similar to those often found in the private sector. The Village's sole proprietary activity is the op- `
eration of a golf and country club.
Fiduciary Fund Types
Trust Funds -used to account for assets held by the Village in a trustee capacity. The pension trust funds are i ~
accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. lI
Agency Funds -used to account for assets held by the Village pursuant to an agreement with WCI Communi-
ties, Inc. and the Northlake Boulevard Task Force. The Village retains no equity interest in these funds.
Account Groups I
Account groups are not funds since they do not reflect available financial resources and related liabilities. In- J
stead, they are used to establish accounting control and accountability for the Village's general fixed assets and
general long-term debt. The following is a description of the account groups of the Village. `
General Fixed Assets Account Group -used to maintain control and cost information for all fixed assets other
than those accounted for in the proprietary fund.
General Long-Term Debt Account Group -used to record outstanding long-term debt other than debt recorded
in the proprietary fund.
Totals (Memorandum Only)
Amounts in the "Totals (Memorandum Only)" columns in the combined financial statements represent a sum-
mation of the combined financial statement line items of the fund types and account groups and are presented J
only to facilitate financial analysis. Data in these columns do not present financial position, results of opera- 1
tions, or cash flows in conformity with generally accepted accounting principles. Neither is such data compara-
ble to a consolidation. Interfund eliminations have not been made in the aggregation of this data. L }
Basis of Accounting and Measurement Focus J
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and
relates to the timing of the measurements made, regardless of the measurement focus applied. 4 ~
i
All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are
recognized in the period in which they become susceptible to accrual, i.e., when they become measurable and
available to pay liabilities of the current period. Ad valorem taxes and charges for services are susceptible to
accrual when collected in the current year or within 60 days subsequent to year-end, provided that amounts re-
ceived pertain to billings through the fiscal year just ended. _Tntergovernmental revenues, which include state ,
revenue sharing allotments, local government one-half cent sales tax, and county shared revenue, among other
sources, are recorded in accordance with their legal or contractual requirements if collected in the current period
or within 60 days after year-end. Interest is recorded when earned. Licenses and permits, fines and forfeitures,
and miscellaneous revenues are recorded as revenues when received in cash because they are generally not
measurable until actually received. Occupational license revenues collected in advance of periods to which they
relate are recorded as deferred revenues.
16 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund li-
ability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which
is recognized when due.
The proprietary fund and pension trust funds are accounted for using the accrual basis of accounting. Their
revenues are recognized when earned, and their expenses are recognized when they are incurred. Membership
fees of the proprietary fund that are collected in advance of the period to which they apply are recorded as de-
ferred revenue.
Measurement Focus
All government funds are accounted for on a flow of current financial resources measurement focus. This
means that only current assets and current liabilities are generally included on their balance sheets. Their re-
ported fund balance (net current assets) is considered a measure of "available spendable resources". Govern-
mental fund operating statements present increases (revenues and other financing sources) and decreases (ex-
penditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of
sources and uses of "available spendable resources" during a period.
The enterprise fund and the pension trust funds are accounted for on a flow of economic resources measurement
focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity
are included on their balance sheets. The enterprise fund and the pension trust funds' operating statements pre-
sent increases (revenues) and decreases (expenses) in net total assets.
The Village has elected not to apply Financial Accounting Standards Board (FASB) Statements and Interpreta-
tions issued after November 30, 1.989, as permitted by Statement No. 20 of GASB, Accounting and Financial
Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting.
Budgetary Accounting
State of Florida statutes require that all municipal governments establish budgetary systems and approve bal-
anced annual operating budgets. The Council annually adopts an operating budget and appropriates funds for
the general fund. 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 lst. The proposed budget includes expenditures and the
means of financing them.
During the third week of July, the Council holds public meetings to obtain taxpayer comments.
Upon completion of the public hearings and prior to October 1, a final operating budget is legally enacted
through the passage of an ordinance. Estimated beginning fund balances are considered in the budgetary
process.
The ordinance approved by the Council which adopted the budget for the fiscal year ended September 30, 2001,
allows budget transfers based on the following regulations:
Appropriations within a department shall not be transferred in amounts of $2,500 or more without the ap-
proval of the Council.
Financial Section y7
THE VILLAGE OP NORTH PALM D€ACH, FLORIDA -
Notes to Financial Statements
i
September 30, 2001
Appropriations within a department less than $2,500 shall not be transferred without the approval of the Vil-
lage Manager.
Unencumbered appropriations lapse at fiscal year end. Encumbrances at year end are carried forward to the next r
year. During the year, several supplementary appropriations were necessary. For the year ended September 30,
2001, several expenditures exceeded appropriations in the general fund. They are as follows:
Expenditures for health insurance -Law Enforcement, Emergency Medical Services, and Solid Waste ex-
ceeded appropriations due to the accounting treatment of potential claims liability. i
Expenditures for capital outlay -Automotive in Facilities Maintenance and Park Maintenance exceeded 1
appropriations due to the accounting treatment for capital purchases financed through debt in the initial year.
Expenditures for capital outlay -Machinery and Equipment in Fire Prevention and Emergency Medical Ser-
vices exceeded appropriations due to the accounting treatment for capital purchases financed through debt in I
the initial year.
Expenditures for Outside Services Pay in Law Enforcement is not a budgeted item. These costs are incurred
as a result of contracts with businesses in the Village for additional police protection. This amount is offset
by fees charged for those services.
The budget for the general fund is adopted on an accounting basis that differs from generally accepted account-
ing principles (GAAP) because they include open encumbrances as expenditures (See Note 8). The Village also
adopts anon-appropriated operating budget for the enterprise fund substantially on a basis consistent with gen-
erally accepted accounting principles, except that depreciation is not budgeted.
Cash and Cash Equivalents
All short-term investments that are highly liquid are considered to be cash equivalents. Cash equivalents are
readily convertible to a known amount of cash, and at the day of purchase, have a maturity date no longer than L
three months.
Investments
Investments are reported at fair value, which is determined by using various third party pricing sources. The
Local Government Surplus Funds Trust, administered by the Florida State Board of Administration, is a " 2A-7
like" pool and, thus, these investments are valued using the pooled share price.
Restricted Assets ~-
Cash and cash equivalents are restricted for the following purposes:
2001 2000
Law enforcement education $ 10,290 $ 9,825
Public safety 15,304 15,244
Library 61,321 26,039
Recreation facilities 4,000 4,000
Atwater Memorial 5,990 - `
Total restricted assets $ 96,905 $ 55,108
Special Assessments Receivable/Deferred Revenue
Special assessments receivable recorded in the general fund represent the aggregate balance of assessments lev-
1
18 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Nofes to Financial Statements
September 30, 2001
ied by the Village to repay the costs of improvements. These assessments are collected in annual installments
together with interest and collection costs.
The Village reports deferred revenue in an amount equal to the special assessments receivable since this revenue
will be collected in future years.
Inventories
Inventories are valued at cost determined on a first-in, first-out basis. Inventories in the general fund consist of
expendable supplies held for consumption. The initial cost is recorded as an asset at the time the individual in-
ventory items are purchased and are charged against operations in the period when used.
Fixed Assets
Land, buildings and equipment acquired or constructed for general governmental purposes are recorded as ex-
penditures (i.e., Capital Outlay) in the fund making the acquisition and capitalized at cost in the general fixed
assets account group. Certain general fixed assets acquired prior to 1986 have been capitalized at their esti-
mated historical cost. Donated assets are capitalized in the general fixed assets account group at their fair mar-
ket value at the time received. Assets in the general fixed assets account group are not depreciated.
_ Public domain ("infrastructure") general fixed assets consisting of streets, sidewalks, drainage systems, curbs,
and lighting systems are not capitalized by the Village since they are immovable and of value only to the Vil-
lage.
Fixed assets, including infrastructure type items, of the enterprise fund are capitalized and depreciated in that
fund. Additionally, net interest cost is capitalized on projects during the construction period in accordance with
Statements of Financial Accounting Standards No. 34. Depreciation is computed on the straight-line method
over their estimated useful lives. The estimated useful lives are as follows:
Buildings and improvements 30 years
Improvements other than buildings 10 years
Golf course improvements 15 years
Equipment 3-10 years
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 em-
ployees who are eligible to receive termination payments upon separation. Along-term liability of $590,606 is
recorded in the general long-term debt account group for general fund employees and $78,807 in the enterprise
fund for country club employees.
Fund Balance Reserves
Reserves are used to indicate that a portion of the fund balance is not appropriable for expenditure or is legally
segregated for a specific future use. Usage of reserves has been limited to the following:
Reserved for inventories, prepaid items, and deposits -Indicates that a portion of fund balance is segregated
since these items do not represent "available spendable resources."
Financial Section 19
r~
THE VILLAGE ®F NORTH PALM BEACH, FLORIDA r ~
Notes to f=inancial Statements J
September 30, 2001-
. Reserved for restricted assets -Restricted for expenditures related solely to law enforcement, library, rec- r
reation facilities, and a memorial fund.
Reserved for encumbrances -Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of monies are recorded in order to reserve that portion of the .applicable
appropriation., is employed as an extension of formal budgetary integration in the general fund. Open en-
cumbrances at year end are reported as reservations of fund balance. Encumbrances do not constitute ex-
penditures or liabilities.
Reserved for employees' pension benefits -Restricted for payment of retirement benefits.
Designation of a portion of the fund balance was established to indicate tentative plans for financial resource
utilization related to future expenses. ` i
Contributed Capital J
Contributed capital is recorded in proprietary funds that have received capital grants or contributions from de- ~ j
velopers, customers or other funds. JI
Retained Earnings Reserves `
Retained.earnings of the enterprise fund reflects amounts that are reserved for expenses related to the assessment
and rehabilitation of the contamination site resulting from a leak in the underground gas facilities ($32,866) and
the acquisition of capital assets ($11,672). Unreserved retained earnings represents the remainder of the Vil-
lage's equity in the cumulative earnings of the enterprise fund.
Interfund Transactions
During the course of normal operations, it is necessary for the Village to enter into transactions among its vari-
ous funds. These transactions consist of one or more of the following types:
Reimbursements to a fund, which are generally reflected through the allocation of pooled cash accounts, for
expenditures or expenses initially made from it that are properly applicable to another fund.
Transfers of residual equity balances from one fund to another fund.
Operating transfers in and out, as appropriate, for all other interfund transactions, which are shown as other
financing sources or uses.
All other outstanding balances between funds are reported as "due to/from other funds."
Property Taxes ` ( '
Under Florida law, the assessment of all properties and the collection of all county, municipal and school board J
property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector, re-
spectively. All property is reassessed according to its fair market value on January 1 of each year and each as-
sessment 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 assessed value of property within the corporate limits
of the Village at January 1, 2000, upon which the 2000-01 levy was based, was approximately $901 million.
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 1 of each year during the budget pro-
cess. The Palm Beach County Property Appraiser incorporates the Village's millage into the total tax levy, , I
20 Financial ~ecti®n
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
which includes the County, County School Board, and Special District tax requirements. The millage rate as-
sessed by the Village for the year ended September 30, 2001, was 5.7500 ($5.75 for each $1,000 of assessed
valuation).
Taxes may be paid less a 4°Io 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. Delin-
quent taxes on real property bear interest at 18°Io per year. On or prior to June 1 following the tax year, certifi-
cates are offered for sale for all delinquent taxes on real property.
After sale, tax certificates bear interest at 18°Io per year or at any lower rate bid by the buyer. Application for a
tax deed on any unredeemed tax certificate may be made by the certificate holder after a period of two years.
Unsold certificates are held by the County. 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, 2001, unpaid delinquent taxes are not material and have not been recorded by the Village.
Pension Plans
The Village sponsors and administers two pension plans covering substantially all full-time employees. Annual
costs of the pension plans are actuarially computed, and the Village funds annual pension costs as incurred.
(3) DEPOSITS AND INVESTMENTS
Deposits
All of the Village's deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chap-
ter 280, "Florida Security for Public Deposits Act." Under the Act, every qualified public depository shall de-
posit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The Treasurer,
by rule, shall establish minimum required pledging levels. The pledging level may range from 25°Io to 125°Io of
the average monthly balance of public deposits, depending upon the depository's financial condition and estab-
lishment period. All collateral must be deposited with an approved financial institution. Any losses to public
depositors are covered by applicable deposit insurance, sale of securities pledged as collateral, and, if necessary,
assessments against other qualified public depositories of the same type as the depository in default. At year
end, the Village's deposits were covered by federal depository insurance.
Investments
The Village is authorized to invest its funds as follows:
1. Interest-bearing checking or savings accounts in state-certified qualified public depositories, as defined
in Florida State Statute 280.02;
2. Interest-bearing time deposits in qualified public depositories, as defined in Florida State Statute 280.02;
3. The Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized
pursuant to the Florida Interlocal Cooperation Act, as provided in Florida State Statute 163.01;
4. Securities and Exchange Commission registered money market funds with the highest credit quality rat-
ing from a nationally recognized rating agency;
5. Direct obligations of the United States Treasury;
6. Federal agencies and instrumentalities;
Financial Section 21
THE VILLAG€ OI° NORTi~ PALM REAC~I, FLORIDA
Notes to Financial Statements
September 30, 2001
7. Securities of, or interest in, any open-end or closed-end management-type investment company or in-
vestment trust registered under the Investment Company Act of 1940, 15 U.S.C. sections 80a-1 et seq., ,
as amended from time to time, provided that the portfolio of such investment company or investment
trust is limited to obligations of the United States Government or any agency or instrumentality thereof ~
and to repurchase .agreements fully collateralized by .such United States Government obligations, and
provided that such investment company or investment trust takes delivery of such collateral either di-
rectly or through an authorized custodian;
8. Other investments authorized by law or by ordinance by the Village;
Investments of the pension trust funds can consist of every kind of property, real, personal, or mixed, and every
kind of investment, specifically including bonds, debentures and other corporate obligations, and stocks, pre- ' l
ferred or common. J
The Village's investments are categorized to give an indication of the level of risk assumed by the entity at year
end. Category 1 includes investments that are insured or registered or for which the securities are held by the
Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for
which the securities are held by the counter-party's trust department or agent in the Village's name. Category 3
includes uninsured and unregistered investments for which the securities are held by the counter-party, or by its
trust department or agent but not in the entity's name.
Investments in the State Treasurer's Investment Pool and mutual funds are not required to be categorized, since `
the investments are not evidenced by securities that exist in physical or book entry form.
The following matrix presents the components of the Village's cash and cash equivalents and investments at
September 30, 2001. The investment risk categories are indicated in the last column. Deposit risks are not in-
cluded in the table.
Reported Fair `
Unrestricted Restricted Amount Value Category
Cash and cash equivalents:
Deposits $ 1,655 $ - $ 1,655 $ 1,655 - ` l
Overnight repurchase agreement 1,099,666 - 1,099,666 1,099,666 3 1
Money market mutual funds 275,084 - 275,084 275,084 2
Investment in State Treasurer's
Investment Pool 6,452,374 96,905 6,549,279 6,549,279 -
Total cash and cash j
equivalents 7,828,779 96,905 7,925,684 7,925,684 ` ~ ~I
Investments:
U.S. government securities 1,789,2.18 - 1,789,218 1,789,218 2
Corporate bonds 734,121 - 734,121 734,121 2
Common stock 2,769,398 - 2,769,398 2,769,398 2
Retirement plan mutual funds 6,440,405 - 6,440,405 6,440,405 -
Total investments 11,733,142 - 11,733,142 11,733,142
Total cash and cash equiva-
lents and investments $ 19,561,921 $ 96,905 $ 19,658,826 $ 19,658,826
The pension trust funds own all of the investments in Category 2.
22 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
(4) LAND, BUILDINGS, AND EQUIPMENT
General Fixed Assets
The following is a summary of changes in the general fixed assets account group during the fiscal year.
Balance Balance
October 1, September 30,
2000 Additions Deletions 2001
Land $ 2,055,889 $ - $ - $ 2,055,889
Buildings and improvements 8,599,783 2,750 - 8,602,533
Equipment 3,543,753 493,613 231,809 3,805,557
Library books and equipment 838,997 83,514 54,387 868,124
Total $ 15,038,422 $ 579,377 $ 236,196 $ 15,332,103
Proprietary Fund Fixed Assets
A summary of the proprietary fund land, buildings and equipment at September 30, 2001, is as follows:
Land $ 1,051,311
Building and improvements 1,462,356
Improvements other than building 574,949
Furniture, fixtures and equipment 738,623
Golf course improvements 1,603,940
5,431,179
Less accumulated depreciation (2,407,086)
$ 3,024,093
(5) LONG-TERM DEBT
Loans Payable
Promissory Note
The Village Council adopted Resolution No. 71-2000 authorizing the execution of a loan agreement with First
Union National Bank for the purpose of refinancing an existing loan incurred for the renovation of the Village's
Country Club restaurant in the amount of $860,000. A portion of the proceeds was also used to finance the
various capital expenditures of the Village.
The loan is secured by franchise fees and public service taxes of the Village. Principal and interest payments are
due quarterly, commencing on February 15, 2001, with a final maturity date of November 15, 2010. The inter-
est rate on the loan is 5.22%.
A portion of the loan ($260,000) is reported in the general long-term debt account group in an amount equal to
the proceeds used for various capital expenditures in the general fund. The remainder of the loan ($600,000) is
recorded in the proprietary fund. Annual debt service requirements to maturity are as follows:
Financial Section 23
i
THE VILLAGE OF NORTH PALM REACH, FLORIDA r
Notes to Financial Statements
September 30, 2001
General
Year Ending Proprietary Long-Term
Septert~ber 30, Fund Debt ~ 1
2002 $ 77,398 $ 60,388 '
2003 77,398 60,388
2004 77,398 60,388 ~ 1
2005 77,398 60,388 1
2006 77,398 15,097
Thereafter 328,942 -
Total debt service requirements 715,932 256,649
Less:
Amount representing interest (150,944) (31,484)
$ 564,988 $ 225,165
Promissorv Note ` J
The Village Council adopted Resolution No. 46-2001 authorizing the execution of a note with Bank of America
in the principal amount of $2,800,000 to finance the construction of various capital projects. The promissory `
note is secured by franchise fees and public service taxes. Principal and interest payments are due semi-
annually, commencing on November 30, 2001, with a final maturity date of May 31, 2011. The interest rate on
the note is 3.29%. Annual debt service requirements to maturity, which are payable by the general fund, are as _
follows: J
Year Ending J
September 30, Amount i ,
2002 $ 331,449 1
2003 331,498
2004 331,748 `
2005 331,600
2006 331,654
Thereafter 1,659,243 `- 1
Total debt service requirements 3,317,192 J
Less: ~
Amount representing interest (517,192) `
$ 2,800,000
Promissorv Note
The Village Council adopted Resolution No. 18-99 authorizing the execution of a loan agreement with Fidelity
Federal Savings for the purpose of financing various capital expenditures in the amount of $600,000. The loan
is secured by franchise fees and public service taxes of the Village. Principal and interest payments are due
monthly, commencing on April 16, 2000, with a final maturity date of March 16, 2004. The interest rate on the
loan is 3.99%. Annual debt service requirements to maturity, which are payable by the general fund, are as fol-
lows:
i
24 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
Year Ending
September 30, Amount
2002 $ 132,774
2003 132,774
2004 66,387
Total debt service requirements 331,935
Less:
Amount representing interest (16,726)
$ 315,209
Promissorv Note
The Village Council adopted Resolution No. 8-97 authorizing the issuance of a note with First Union National
Bank in the principal amount of $6,560,000 to finance the acquisition, construction, equipping, and improving
of a public safety building, a community center, and a recreation building. A portion of the proceeds was also
used to refinance an existing loan incurred to make improvements to the country club.
The promissory note is secured by franchise fees and public service taxes of the Village. Principal payments of
$190,000 are due semi-annually on January 1 and August 1, commencing on August 1, 1997. The interest rate
is at the London InterBank Offered Rate ("LIBOR") which is defined as 75% of the rate of interest published as
one-month LIBOR on the first day of each month. The effective rate at September 30, 2001, was 2.64% and this
approximates the rate that was used to calculate the debt service requirements to maturity.
A portion of the promissory note ($560,000) is reported in the proprietary fund in an amount equal to the pro-
ceeds used to refinance an existing country club obligation. The remainder of the promissory note ($6,000,000)
is recorded in the general long-term debt account group. Annual debt service requirements to maturity are as
follows:
General
Year Ending Proprietary Long-Term
September 30, Fund Debt
2002 $ 84,747 $ 420,643
2003 82,637 412,732
2004 40,527 404,821
2005 - 396,910
2006 - 388,999
Thereafter - 3,606,860
Total debt service requirements 207,911 5,630,965
Less:
Amount representing interest (7,911) (980,965)
$ 200,000 $ 4,650,000
Promissorv Note
The Village Council adopted Resolution No. 3-00 authorizing the execution of a loan agreement with Wachovia
Bank for the purpose of financing the lease-purchase of eight automobiles. A portion of the proceeds was also
used to finance the purchase of equipment for the country club restaurant.
Financial Section 25
-j
1
THE VILLAGE ®F NORTH PALM EEACH, 1=LORI®A ~ ~
Notes to Financial Statements ~
September 30, 2001
The loan is unsecured. Principal and interest payments are due monthly, commencing on March 1, 2000, with a r
final maturity date of February 1, 2005. The interest rate on the loan is 4.33%.
A portion of the promissory note ($30,000) is reported in the proprietary fund in an amount equal to the pro-
ceeds used to finance the purchase of equipment. The remainder of the promissory note ($112,000) is recorded
in the general long-term debt account group. Annual debt service requirements to maturity are as follows:
General
Year Ending Proprietary Long-Term
September 30, Fund Debt `
2002 $ 6,659 $ 25,050
2003 6,659 25,050
2004 6,659 25,050
2005 2,219 8,349 ~ ~
2006 - _
Total debt service requirements 22,196 83,499 `
Less:
Amount representing interest (1,403) (6,137)
$ 20,793 $ 77,362
Capital Leases i
The Village entered into a lease agreement with Bank of America as lessee for financing the acquisition of a fire
truck. The lease agreement qualifies as a capital lease for accounting purposes and therefore has been recorded
at the present value of the future minimum lease payments as of the date of inception. Lease payments will be
made from the general fund.
The following is a schedule of the future minimum lease payments under this capital lease:
Year Ending ~ ~I
September 30, Amount
2002 $ 56,232
2003 56,232
2004 56,232
2005 56,232 ~
2006 56,232
Total debt service requirements 281,160
Less:
Amount representing interest (36,101)
Present value of future
minimum lease payments $ 245,059
.i
26 Financial Section
L
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
Changes in Long-Term Liabilities
During the year ended September 30, 2001, the following changes occurred in liabilities reported in the general
long-term debt account:
Balance Balance
October 1, September 30,
2000 Additions Deletions 200'1
Promissory notes $ 5,481,150 $ 3,060,000 $ 473,414 $ 8,067,736
Compensated absences 575,567 15,039 - 590,606
Capital leases 298,552 - 53,493 - 245,059
Total $ 6,355,269 $ 3,075,039 $ 526,907 $ 8,903,401
(6) RISK MANAGEMENT
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.
Employee Benefits Group
The Village is self insured to provide group medical coverage. A third party administers the group medical cov-
erage for the Village. The Village funds its own losses based on actual claims. A stop loss insurance contract
executed with an insurance carrier covers individual claims in excess of $35,000 per plan year. There were no
significant changes in insurance coverage from the prior year and the amount of settlements did not exceed in-
surance coverage for the last three years.
The liability for unpaid claims is estimated using an industry average that is based on actual claims paid. As of
September 30, 2001, the Village recorded a liability for its employee benefit plan in the amount of $33,100, be-
cause Village claims exceeded contributions for the year. Changes in the claims liability since September 30,
1999, are as follows:
Claims and
Year Ended Claims Liability Change in Claim Claims Liability
September 30, Beginning of Year Estimates Payments End of Year
199.9 $ 79,026 $ 1,009,668 $ (925,957) $ 162,737
2000 162,737 817,517 (851,958) 128,296
2001 128,296 484,762 (579,958) 33,100
Property and Casualty Group
The Village also participates in Southeast Risk Management Association (SERMA), aquasi-governmental
agency created by an interlocal agreement, as authorized by Florida Statute 163. SERMA administers the prop-
erty and casualty coverage for the Village. The Village and other participating members pool their resources so
as to provide a comprehensive risk management program, including insurance coverage, whose cost is less than
the cost of each municipality obtaining insurance separately. The members are subject to supplemental assess-
ments in the event of deficiencies, except that to the extent that deficiencies result from a specific claim against
a member in excess of the reinsurance available, such deficiency is solely the responsibility of that member.
SERMA reinsures for workers compensation and property claims in excess of $250,000. The Village is also
covered by Florida Statutes under the Doctrine of Sovereign Immunity which effectively limits the amount of
Financial Section 27
THE VILLAGE ®F-NORTH PALM SEACIi, FL®RI®A " ~
Notes to Financial Statements j
September 30, 2001
liability of municipalities to individual claims of $100,000/$200,000 for all claims relating to the same incident.
There were no changes in insurance coverage from the prior year and the amount of settlements did not exceed
insurance coverage for the last three years.
At September 30, 2001, there were no liabilities recorded for property and casualty based on a recent actuarial
valuation which indicated that the reserve for incurred but not yet reported losses was adequately funded, and no
additional contributions are required.
(7) PENSION PLANS
The Village maintains the following two separate single employer defined benefit plans: Village of North Palm
Beach Fire and Police Retirement Fund, covering fire fighters and police officers, and Village of North Palm
Beach General Employees Retirement Fund, covering substantially all other full-time Village employees. Both ~ i
plans are reported as pension trust funds and included as part of the Village's reporting entity. Neither plan is- l
sues astand-alone financial report. Additional information on these plans can be found beginning on page 36.
Each plan has its own board which acts as plan administrator and trustee: Board of Trustees (for the Fire and
Police Retirement Fund) and General Employees Retirement 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.
The Florida Constitution requires local governments to make the actuarially determined contribution. The Flor- ` y
ida Division of Retirement reviews and approves each local government's actuarial report prior to its being ap- J
propriated for use for funding purposes. Additionally, the State collects two locally authorized insurance pre-
mium surcharges (one for the Police Pension Plan on casualty insurance policies and one for the Fire Pension
Plan on certain real and personal property insurance policies within the corporate limits) which can only be dis- 1
tributed after the State has ascertained that the local government has met its actuarial funding requirement for J
the then most recently completed fiscal year.
Investments are reported at fair value and are managed by third party money managers. The Village's rode-
pendent custodians and individual money managers price each instrument using various third party pricing
sources. The following investments represent concentrations of 5% or more of net plan assets in investments
that are not issued or guaranteed by the U.S. government.
General Employees Retirement Fund L ~ 'il
Mutual Funds:
STI Classic Investment Grade Bond Fund $ 2,774,345
STI Classic Growth ~ Income Fund 613,595
STI Classic Value Income Stock Fund 680,207 l
SunTrust U.S. Limited Capitalization Equity Fund 662,509 ~ 1
SunTrust High-Grade Equity Income Fund 1,709,749
Fire and Police Retirement Fund
No nongovernmental investments exceed 5% of net plan assets.
The following schedule is derived from the res ective actuarial re orts and Villa e information for the two en-
P P g p
sion plans as of October 1, 2000:
i
28 Financial Section
~-
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
General Employees Fire and Police
Accounting Policies and Plan Assets:
Authority Village Ordinance Village Ordinance/State
Basis of Accounting Accrual Statute
Accrual
Asset Valuation:
Reporting Fair Value Fair Value
Actuarial Valuation 5-year smoothed market 5-year smoothed market
Legal Reserves None None
Long-Term Receivable None None
Internal/Participant Loans None None
Membership and Plan Provisions:
Members:
Active Participants 84 30
Retirees and Beneficiaries 13 4
Terminated Vested 32 g
Normal Retirement Benefits: Option 1 Option 2
Retirement Age 65 60 55
Years of Service (minimum) 5 5 9
Accrual - (years 1-20) 2.00% 2.25% 2.50%
(over 20) ~ 1% 1% -
Maximum None None 60%
Years to Vest 9 9 10
Contributions:
Actuarial Rate:
Village 15.03% 0.51%
State n/a 5.24%
Participants: (Option 1) 0.00% 2.00%
(Option 2) 2.00% n/a
Annual Pension Cost $ 419,555 $ 88,639
Contributions Made $ 447,128 $ 133,808
Actuarial Valuation:
Frequency Annual Annual
Latest Valuation 10/1/00 10/1/00
Basis for Contribution 10/1/00 10/1/00
Cost Method Frozen Entry Age Aggregate
Amortization:
Method Level percent n/a
Period 30 years n/a
Open/Closed Closed n/a
Note: The aggregate actuarial cost method does not identify or separately amortize unfunded ac-
tuarial liabilities.
Assumptions:
Investment Earnings (including
inflation) 8.5% / year up to retirement,
5.25% thereafter 8.0% /year
Financial Section 29
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
General Employees Fire and Police
Salary Increases (including inflation) 5.5% /year 6.0% /year
Inflation 4.0% /year 4.0% /year
Mortality Rates 1983 Group Annuity 1983 Group Annuity
Mortality Table Mortality Table
Retirement Age: r
Eligible for early retirement 5% 5%
Normal retirement date attained 60% 60%
Four years after normal
retirement date 40% 40%
Fifth year after normal
retirement date 100% 100%
Turnover: J
Age 25 18.8% 5.7%
Age 30 11.2% 5.0% ~ l
Age 35 6.3% 3.8% J
Age 40 4.8% 2.6%
Age 45 3.4% 1.6%
Age 50 2.4% 0.8%
Age 55 0.5% -
Post Retirement Benefits 3% for those who retired 3% /year ,
before 2/1/82 or who
contribute an extra 2%
There have been no changes in actuarial assumptions and methods for either plan since the last actuarial valua- 1
tion (October 1, 1999). There were revisions in benefits for the General Employees Retirement Fund for the J
actuarial valuation dated October 1, 2000. The following change was made:
Employees hired before October 1, 2000, may choose to contribute an extra 2% of pay in order to receive
a COLA (up to 3%) upon retirement. This clause is mandatory for employees hired after September 30,
2000. The net effect of these changes is an increase in the required employer contribution of $114,324 or
4.14% of covered payroll.
Annual Pension Cost and Net Pension Obligation (Benefit):
The Village's annual pension cost and net pension obligation (benefit) for both plans for the current year were as
follows:
General Employees Fire and Police
Annual required contribution $ 415,152 $ 85,866 `
Interest on net pension benefit (11,392) (8,879) 1
Adjustment to annual required contribution 15,795 11,652
.Annual pension cost 419,555 88,639
Contributions made (447,128) (133,808)
Increase in net pension benefit (27,573) (45,169)
Net pension benefit, beginning of year (134,023) (110,988)
Net pension benefit, end of year $ (161,596) $ (156,157)
30 Financial Section
,J
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
Three-Year Trend Information
Annual Percentage Net Pension
Year Pension of APC Obligation
Ended Cost (APC) Contributed (Benefit)
General 9/30/99 $ 215,51.9 105.4% $ (56,181)
Employees 9/30/00 294,902 126.4% (134,023)
9/30/01 419,555 106.6% (161,596)
Fire and Police 9/30/99 $ 184,196 104.2% $ (78,923)
9/30/00 99,248 132.3% (110,988)
9/30/01 88,639 151.0% (156,157)
(8) B U DG ETARI( DATA
Budgeted amounts presented in the accompanying financial statements are as originally adopted, or as amended,
in accordance with a Village ordinance. The Council may amend the current year's budget appropriation by
passage of a budget amendment ordinance after conducting two public hearings on the matter. The following is
a summary of budget revisions for the year ended September 30, 2001:
Original Net Final
Budget Revisions Budget
General Fund:
Total expenditures $ 13,947,270 $ (2,753,000) $ 11,194,270
The Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund
Types on page 10 is presented in accordance with generally accepted accounting principles (GAAP). The Com-
bined Statement of Revenues and Expenditures -Budget and Actual on page 11 is presented on a budgetary ba-
sis. Data presented in these two statements differ because encumbrances (i.e., contracts, unfilled purchase or-
ders, and other commitments for future expenditures) are recorded as expenditures for budgetary purposes but
are recorded as a reservation of fund balance for GAAP purposes. Adjustments necessary to compare the excess
of revenues and other financing sources over expenditures and other financing uses of the general fund at year-
end are as follows:
Excess of revenues and other financing sources
over expenditures and other financing uses
(GAAP Basis) $ 903,013
Adjustments:
Prior year budget encumbrances expended
in current year 324,594
Current year budget encumbrances
outstanding at year-end (42,616)
Excess of revenues and other financing sources
over expenditures and other financing uses
(budgetary basis) $ 1,184,991
Financial Section 31
THE VILLAG€ OP NORTH PALM REACH, PLORI®A ~ r ~
Notes to Financial Statements ~
September 30, 2001
(9) CONTRACTS AND COMMITMENTS
Contracts - ~ .
The Village entered into a contract with Kimley-Horn and Associates, Inc. for the purpose of preliminary plan-
ning, design .and. engineering services for Prosperity Farms. Road, which expires April 12, 2002. The services {
will be provided for a lump sum amount of $82,500. The amount paid under this contract for 2001 was $60,000.. ,-
The Village also entered into a contract with B.E.A. International Corporation in the amount of $175,750 for the
purpose of providing architectural services for interior renovations of the Village Hall. The amount paid under
this contract for 2001 was $96,959. 1
Operating Leases J
The Village is committed under a lease agreement for golf carts in the enterprise fund. The lease is considered l
for accounting purposes to be an operating lease. Lease payments for the year ended September 30, 2001, were J
$47,760. Future minimum lease payments are $47,760 for the year ending September 30, 2002.
The Village is also committed under a lease agreement for two police motorcycles in the general fund. The
lease is considered for accounting purposes to be an operating lease. Lease payments for the year ended Sep-
tember 30, 2001, were $5,000. Future minimum lease payments are $6,000 for the year ending September 30,
2002.
(10) 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 is comprised 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
$66,068 to Seacoast during the fiscal year for water and sewer service.
(11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
In addition to the pension benefits described in Note 7, the Village provides postretirement health care and life `
insurance benefits, in accordance with State statutes, to all employees who retire from the Village. The normal ~
retirement age for police and firefighters is age 55; the normal retirement age for all other Village employees is -
either age 60 or age 65, depending on the option selected by the employee. The employee's contribution is the ` J
full amount of the annual premium. Expenditures for post-retirement health care and life insurance benefits are
recognized as expenditures as claims are paid. Currently, six retirees who met the eligibility requirements
elected to participate in the health care plan. During the year, expenditures of $27,776 were recognized for post- ` J
retirement healthcare. This was an increase of $15,964 from the previous year. ]
(12) CHANGE IN ACCOUNTING PRINCIPLE
The accounting methods and procedures adopted by the Village conform to accounting principles generally ac-
cepted in the United States of America as applied to governmental entities. Effective October 1, 2000, the Vil-
lage adopted Governmental Accounting Standards Board (GASB) Statement No. 33, Accounting and Reporting
for Nonexchange Transactions. This statement establishes accounting and financial reporting standards to guide
state and local governments' decisions about in which fiscal year they should report the results of nonexchange
transactions involving cash and other financial and capital resources. In a nonexchange transaction, agovern-
32 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Financial Statements
September 30, 2001
ment gives or receives value without directly receiving or giving equal value on return. Nonexchange transac-
tions include most taxes, franchise fees, fines, certain grants, and contributions.
As required by GASB Statement No. 33, accounting changes made to comply with the statement have been
treated as an adjustment of prior periods. The effect of implementation on the Village's financial statements
was to increase fund balances of the general fund at October 1, 2000, by $213,206.
Financial Section 33
r~
r~
~
This page intentionally left blank. -
_J
1
~1
`1
34 Financial Section
Required
Supplementary
Information
Financial Section 35
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplementary Information
Schedule of Funding Progress - General Employees Retirement Fund
See notes to required supplementary information.
36 Financial Section
Actuarial
UAAL as
Actuarial
Accrued
% of
Actuarial
Value of
Liability(AAL)
Unfunded AAL
Funded
Covered
Covered
Valuation
Assets
- Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b- a)
(a/b)
(c)
(b-a)/c
10/1/1995
$ 3,471,658
$ 4,132,092
$ 660,434
84.0%
$ 2,451,309
26.9%
10/1/1996
3,805,073
4,295,018
489,945
88.6%
2,251,610
21.8%
10/1/1997
4,301,968
4,585,587
283,619
93.8%
2,380,024
11.9%
10/1/1998
4,574,342
4,733,864
159,522
96.6%
2,435,518
6.5%
10/1/1999
5,179,781
5,943,849
764,068
87.1%
2,543,984
30.0%
10/1/2000
5,732,329
7,508,961
1,776,632
76.3%
2,761,773
64.3%
See notes to required supplementary information.
36 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplementary Information
Schedule of Employer and State Contributions
Annual
Year Ended Required Percentage
September 30, Contribution Contributed
General Employees Retirement Fund
1996
1997
1998
1999
2000
2001
Fire and Police Retirement Fund *
$ 259,751
100.1%
240,637
101.9%
224,810
111.5%
214,323
106.0%
292,866
127.3%
415,152
107.7%
1996
$ 131,611
101.4%
1997
167,763
101.0%
1998
118,643
145.0%
1999
182,286
105.3%
2000
97,135
135.2%
2001
85,866
155.8%
M Annual required contributions for the Fire and Police Retirement Fund include contributions from the
State of Florida.
See notes to required supplementary information.
Financial Section 37
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to Required Supplementary Information
September 30, 2001
The aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities.
The information presented in the required supplementary schedules was determined as part of the actuarial
valuations at the dates indicated. Additional information as of the latest actuarial valuation follows:
Valuation date
Actuarial cost method
Asset valuation method
Actuarial assumptions:
Investment rate of return (including inflation)
Salary increases (including inflation)
Inflation
Post retirement benefit increases
38 Financial Section
General Fire
Employees and Police
10/1/00
10/1/00
Frozen Entry Age
Aggregate
5-year
5-year
smoothed
smoothed
market
market
8.5%/year up to retirement,
5.25%thereafter
8%/year
5.5%/year
6%/year
4%/year
4%/year
3%/year for
3%/year
those who retired
before 2/1/82
i
General
Fund
Financial Section 39
I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Comparative Balance Sheets
General Fund
September 30, 2001 and 2000
Liabilities and Equity
Liabilities:
Accounts payable and other liabilities $ 204,969 $ 331,302
Deferred revenue 90,718 24,732
Miscellaneous deposits 5,591 5,361
Total liabilities 301,278 361,395
Equity:
2001
2000 J
Assets
Assets:
30,722
28,532
Cash and cash equivalents
$ 4,263,875
$ 3,417,704
Restricted cash
96,905
55,108
Receivables:
42,616
j
State shared revenues
21,037
84,057
Utility taxes
351,978
121,637
Accounts
132,015
128,050 f 1
Special assessments
7,341
12,867 )
Inventories
30,722
28,532
Prepaid items
1,083
899
Deposits
2,000
2,000
Total assets
$ 4,906,956
$ 3,850,854
Liabilities and Equity
Liabilities:
Accounts payable and other liabilities $ 204,969 $ 331,302
Deferred revenue 90,718 24,732
Miscellaneous deposits 5,591 5,361
Total liabilities 301,278 361,395
Equity:
Fund balance:
Reserved for inventories
30,722
28,532
Reserved for prepaid items and deposits
3,083
2,899
Reserved for restricted assets
96,905
55,108
Reserved for encumbrances
42,616
324,594
Unreserved:
Designated for subsequent years
2,139,610
1,005,415
Undesignated
2,292,742
2,072,911
Total equity
4,605,678
3,489,459
Total liabilities and equity
$ 4,9069956
$ 3,850,854
40 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Other Financing Sources - Budget and Actual
General Fund
Year Ended September 30, 2001
Variance
Favorable
Franchise taxes:
Budget
Actual
(Unfavorable)
Taxes:
660,000
691,489
31,489
Ad valorem taxes
$ 4,926,155
$ 5,017,956
$ 91,801
Sales and use taxes:
4,000
5,788
1,788
Local option gas tax trust
170,000
172,994
2,994
Motor fuel gas tax
75,000
83,417
8,417
Total sales and use taxes
245,000
256,411
11,411
Franchise taxes:
Electricity
660,000
691,489
31,489
Telephone
32,000
35,102
3,102
Gas
4,000
5,788
1,788
Cable TV
85,000
149,346
64,346
Water
175,000
158,769
(16,231)
Total franchise taxes
956,000
1,040,494
84,494
Utility service taxes:
Electricity
840,000
823,515
(16,485)
Telecommunication
465,000
494,560
29,560
Gas
22,000
38,353
16,353
Propane
22,000
14,750
(7,250)
Total utility service taxes
1,349,000
1,371,178
22,178
Total taxes
7,476,155
7,686,039
209,884
Licenses and permits:
Village occupational licenses
194,250
211,886
17,636
Building permits
345,000
705,278
360,278
Other licenses and permits:
Bicycle registrations
10
2
(8)
Total licenses and permits
539,260
917,166
377,906
Intergovernmental revenue:
State shared revenue:
General government:
Cigarette tax
30,000
-
(30,000)
State shared revenue
230,000
256,937
26,937
Alcoholic beverages licenses
9,000
8,799
(201)
Local government 1/2 cent sales tax
850,000
918,079
68,079
Total state shared revenue
1,119,000
1,183,815
64,815
Continued on the following page...
Financial Section 41
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Other Financing Sources - Budget and Actual-
General Fund(Continued)
Year Ended September 30, 2001
Variance
Favorable
Public safety:
Accident reports and identifications 2,000 1,994 (6)
Ambulance fees 155,000 181,297 26,297
Total public safety 157,000 183,291 26,291
Physical environment:
Budget
Actual
(Unfavorable)
88,000 79,337
(8,663)
Rental of cellular tower
72,000 78,779
Transportation:
Ground maintenance
- 100
100
Motor fuel tax rebate
$ 7,000
$ 5,626
$ (1,374)
160,000 164,257
4,257
655
(345)
County shared revenues:
County occupational licenses
30,000
29,927
(73)
911-system enhancement program
83,000
50,537
(32,463)
Beautification grant
-
25,244
25,244
County grant
15,000
-
(15,000)
Recycling grant
-
1,758
1,758
DCA grant
10,000
10,000
-
FIND grant
-
29,757
29,757
Total county shared revenues
138,000
147,223
9,223
Total intergovernmental revenue
1,264,000
1,336,664
72,664
Charges for services:
General government:
Sale of maps and publications
400
1,251
851
Certify,copy&research
600
1,191
591
Election filing fees
40
40
-
Total general government
1,040
2,482
1,442
Public safety:
Accident reports and identifications 2,000 1,994 (6)
Ambulance fees 155,000 181,297 26,297
Total public safety 157,000 183,291 26,291
Physical environment:
Refuse collection fees
88,000 79,337
(8,663)
Rental of cellular tower
72,000 78,779
6,779
Ground maintenance
- 100
100
Protective inspections fees
- 6,041
6,041
Total physical environment
160,000 164,257
4,257
Culture and recreation:
Library:
Memberships
5,500
4,690
(810)
Copying
1,500
883
(617)
Postage
1,000
655
(345)
Recreation:
Program activity fees
2,500
3,416
916
Arts and crafts
3,200
-
(3,200)
Summer programs
12,000
12,000
-
Continued on the following page...
I
J
42 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Other Financing Sources - Budget and Actual-
General Fund(Continued)
Year Ended September 30, 2001
Variance
Favorable
Budget Actual (Unfavorable)
Other:
Lost books - library
$ 500
$ 842
$ 342
Recreation facility usage fees
35,000
36,711
1,711
Special recreation facilities:
462,790
492,830
30,040
Marina
74,800
75,981
1,181
Marina decals
8,750
7,422
(1,328)
Total culture and recreation
144,750
1.42,600
(2,150)
Zoning and annexation fees
-
200
200
Total charges for services
462,790
492,830
30,040
Fines and forfeitures:
Court cases:
Court fines
65,000
167,550
102,550
Law enforcement trust
-
656
656
Police education$2.00
2,500
9,971
7,471
Total court cases
67,500
178,177
110,677
Library fines
7,000
7,656
656
Other:
Parking fines
1,100
2,125
1,025
False alarm fines
12,000
12,955
955
Alarm users permit fee
20,000
16,800
(3,200)
Mooring fee
500
90
(410)
Occupational license penalty
4,500
7,699
3,199
Outside services
5,000
4,936
(64)
Code enforcement
1,000
13,325
12,325
Seized tag payment
200
733
533
Water restriction fines
-
425
425
Total other
44,300
59,088
14,788
Total fines and forfeitures
118,800
244,921
126,121
Revenue from use of money:
Interest:
Interest earned
50,000
54,712
4,712
Interest earned- S B A
180,000
193,219
13,219
Total revenue from use of money
230,000
247,931
17,931
Miscellaneous Revenue:
Other miscellaneous revenue:
Reimbursements from the Country Club:
Administration 70,000 70,000 -
Maintenance 1,000 - (1,000)
Total reimbursements from the Country Club 71,000 70,000 (1,000)
Continued on the following page...
Financial Section 43
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Other Financing Sources - Budget and Actual-
General Fund(Continued)
Year Ended September 30, 2001
Variance
Favorable
Budget Actual (Unfavorable)
Other:
Insurance refunds:
Worker's compensation
$ -
$ 837
$ 837
Receipt property damage
-
150
150
Wabash assessment
2,500
-
(2,500)
Other:
Discounts- earned
8,000
8,693
693
Commissions - telephone
50
3
(47)
Commissions- vending machine
300
184
(116)
Donations
1,000
2,354
1,354
Miscellaneous revenues
-
26,330
26,330
Total miscellaneous revenue
82,850
108,551
25,701
Total revenues
10,173,855
11,034,102
860,247
Other financing sources:
Loan proceeds - 260,000 260,000
Sale of surplus equipment 1,000 8,300 7,300
Total revenues and other financing sources $ 10,174,855 $ 11,302,402 $ 1,127,547
44 Financial Section I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses-
Budget and Actual(Budgetary Basis) - General Fund
Year Ended September 30, 2001
Total Village Council
87,087 18,630
105,717
Actual
906
Village Manager:
Encumbrances
on
Personal services:
Variance
(Prior Year)
Budgetary
Revised
Favorable
182,464
Actual
Current Year
Basis
Budget
(Unfavorable)
General government:
Certification pay
- -
-
500
500
Village Council:
200 -
200
200
-
FICA
Personal services:
15,068
16,066
998
Pension-general employees
25,200 -
Executive salaries
$ 31,200
$ -
$ 31,200
$ 31,200
$ -
FICA
2,387
-
2,387
2,387
-
Worker's compensation
1,755
-
1,755
1,840
85
Operating expenses:
11,477 -
11,477
15,751
4,274
Operating expenses:
Professional services
3,674
-
3,674
3,745
71
Accounting and auditing
20,101
18,630
38,731
39,000
269
Travel
2,388
-
2,388
2,411
23
R&M furniture&equipment
585
-
585
625
40
Employee relations
2,862
-
2,862
3,000
138
Advertising
7,254
-
7,254
7,255
1
Advisory Board dinner
5,040
-
5,040
5,070
30
Office supplies
20
-
20
200
180
Publications&subscriptions
40
-
40
60
20
Membership&dues
9,181
-
9,181
9,180
(1)
Conference&seminars
600
-
600
650
50
Total Village Council
87,087 18,630
105,717
106,623
906
Village Manager:
Personal services:
Executive salaries
182,463 -
182,463
182,464
1
Regular pay
29,800 -
29,800
29,823
23
Certification pay
- -
-
500
500
Holiday gifts
200 -
200
200
-
FICA
15,068 -
15,068
16,066
998
Pension-general employees
25,200 -
25,200
25,200
-
Health insurance
10,516 -
10,516
9,820
(696)
Life insurance
1,433 -
1,433
1,956
523
LTD insurance
822 -
822
887
65
Worker's compensation
11,477 -
11,477
15,751
4,274
Operating expenses:
Contractual services
75 -
75
-
(75)
Employee assistance program
590 -
590
565
(25)
Administration fee
500 -
500
500
-
Travel
5,818 -
5,818
6,357
539
Auto allowance
6,000 -
6,000
6,000
-
Telephone
7,539 -
7,539
7,800
261
Insurance-surety bond
700 -
700
750
50
Computer supplies
2,584 -
2,584
2,650
66
R&M furniture&equipment
67 -
67
68
1
Continued on the following page...
Financial Section 45
THE VILLAGE OF (NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
Printing and binding
$ 633 $ -
$ 633
$ 700
$ 67
Employee relations
6,501 -
6,501
6,900
399
Advertising
1,900 -
1,900
1,900
-
Office supplies
1,165 -
1,165
1,165
-
Furniture supplies
281 -
281
282
1
Publications&subscriptions
2,892 -
2,892
2,825
(67)
Membership&dues
4,124 -
4,124
4,230
106
Conference and seminars
4,992 -
4,992
5,224
232
Training and education
1,233 (649)
584
584
-
Total Village Manager
324,573 (649)
323,924
331,167
7,243
Finance:
11,509
(1,000) 10,509
10,600
91
Personal services:
4,840
- 4,840
4,945
105
Executive salaries
81,929 -
81,929
81,929
-
Regular pay
112,199 -
112,199
115,146
2,947
Part-time pay
16,369 -
16,369
17,057
688
Overtime pay
5,125 -
5,125
6,500
1,375
Holiday gifts
225 -
225
225
-
FICA
15,191 -
15,191
15,573
382
Pension-general employees
23,429 -
23,429
23,429
-
Health insurance
9,784 -
9,784
9,146
(638)
Life insurance
1,350 -
1,350
1,830
480
LTD insurance
335 -
335
464
129
Worker's compensation
10,769 -
10,769
14,782
4,013
Operating expenses:
310,513
- 310,513
324,376
13,863
Professional services
1,940 2,500
2,940
3,300
360
(1,500)
Contractual services
11,509
(1,000) 10,509
10,600
91
Travel
4,840
- 4,840
4,945
105
Telephone
4,400
- 4,400
4,500
100
Insurance-surety bond
1,200
- 1,200
1,200
-
R&M furniture&equipment
330
- 330
1,400
1,070
Printing and binding
2,054
- 2,054
3,000
946
Employee relations
735
- 735
800
65
Office supplies
2,187
- 2,187
2,500
313
Computer supplies
1,843
- 1,843
3,200
1,357
Publications&subscriptions
348
- 348
300
(48)
Membership and dues
592
- 592
650
58
Conference and seminars
1,175
- 1,175
1,300
125
Training and education
655
- 655
600
(55)
Total Finance
310,513
- 310,513
324,376
13,863
Continued on the following page...
46 Financial Section
i
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Village Attorney:
Actual
Operating expenses:
Encumbrances
on
Monthly retainer
Variance
- 80,584
81,700
(Prior Year)
Budgetary
Revised
Favorable
38,000
Actual
Current Year
Basis
Budget
(Unfavorable)
36
Total Village Attorney
136,908
- 136,908
138,500
1,592
Village Clerk:
Continued on the following page...
Personal services:
Executive salaries
$ 52,276
$ -
$ 52,276
$ 52,278
$ 2
Regular pay
34,880
-
34,880
34,880
-
Part-time pay
2,660
-
2,660
3,285
625
Holiday gifts
100
-
100
100
-
FICA
6,290
-
6,290
6,669
379
Pension-general employees
10,459
-
10,459
10,459
-
Health insurance
5,098
-
5,098
4,761
(337)
Life insurance
605
-
605
811
206
LTD insurance
202
-
202
219
17
Worker's compensation
5,015
-
5,015
6,932
1,917
Operating expenses:
Travel
-
-
-
537
537
Telephone
1,923
-
1,923
2,050
127
Rental-facility
750
-
750
1,000
250
Insurance-surety bond
100
-
100
110
10
R&M building&grounds
-
-
-
80
80
R&M furniture&equipment
1,491
-
1,491
2,290
799
Printing and binding
1,048
-
1,048
1,650
602
Employee relations
137
-
137
500
363
Recording fees/court cost
86
-
86
300
214
Trophies,awards&prizes
373
-
373
900
527
Office supplies
2,075
-
2,075
2,320
245
Recording tapes
153
-
153
140
(13)
Records retention supplies
-
-
-
100
100
Flower expense
841
-
841
900
59
Publications &subscriptions
162
-
162
285
123
Membership&dues
191
-
191
240
49
Conference and seminars
372
-
372
925
553
Training and education
93
-
93
500
407
Capital outlay:
Furniture&fixtures
784
-
784
1,000
216
Total Village Clerk
128,164
-
128,164
136,221
8,057
Village Attorney:
Operating expenses:
Monthly retainer
80,584
- 80,584
81,700
1,116
Special legal services
37,560
- 37,560
38,000
440
Labor services
18,764
- 18,764
18,800
36
Total Village Attorney
136,908
- 136,908
138,500
1,592
Continued on the following page...
Financial Section 47
I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) -General Fund(Continued)
Year Ended September 30, 2001
Actual ,
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable r j
Actual Current Year Basis Budget (Unfavorable) J
Planning and Community
Development:
Operating expenses:
Contractual services:
Contract Labor
7,473 -
Engineering/planning
$ 13,595
$ (17,027) $ (3,432) $ 6,800
$ 10,232
Archivist/historian
34
- 34 200
166
Advertising
543
- 543 -
(543)
Total Planning and
Electricity
8,733 -
8,733
Community Development
14,172
(17,027) (2,855) 7,000
9,855
General Services:
Operating expenses:
Contract Labor
7,473 -
7,473
7,600
127
Telephone
2,635 -
2,635
2,800
165 `
Postage
30,579 -
30,579
30,580
1
Electricity
8,733 -
8,733
14,000
5,267
Water and sewer
2,267 -
2,267
2,400
133
Gas
- -
-
100
100
Solid waste disposal
286 -
286
400
114 `
Rental-postage equipment
1,861 -
1,861
2,000
139
Rental-copier equipment
6,762 -
6,762
7,800
1,038
Insurance-package
125,366 -
125,366
172,500
47,134
R&M building&grounds
48 -
48
900
852
R&M furniture&equipment
2,930 -
2,930
3,000
70
Printing and binding
6,046 -
6,046
6,500
454
Newsletter supplies
11,562 -
11,562
12,500
938
Office supplies
1,591
1,591
1,500
(91)
Building maintenance supplies
727 -
727
1,704
977
Furniture/fixtures supplies
- -
-
150
150 l
Irrigation supplies
96 -
96
300
204 J
Machinery&equipment supplies
674 -
674
1,000
326
Fertilizers
- -
-
500
500
Custodial supplies
1,715 -
1,715
1,716
1
Refreshments and supplies
806 -
806
2,000
1,194
Capital outlay:
Audio,visual&communications
2,164 (1,767)
397
500
103
Total General Services
214,321 (1,767)
212,554
272,450
59,896
Special Projects:
Contractual services:
Professional services 1,870 - 1,870 11,200 9,330
Continued on the following page...
48 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
Comprehensive plan
amendments
$ 5,500 $ 2,000
$ 7,500
$ 10,000
$ 2,500
Northlake Boulevard
redevelopment
- -
-
5,000
5,000
Capital outlay:
1,205,697
- 1,205,697
1,249,435
43,738
Construction&major
60,200
- 60,200
66,860
6,660
renovations
- (271,883)
(271,883)
-
271,883
Total Special Projects
7,370 (269,883)
(262,513)
26,200
288,713
Total general
30,461
- 30,461
32,499
2,038
government
1,223,108 (270,696)
952,412
1,342,537
390,125
Public Safety:
Law enforcement:
Personal services:
Executive salaries
224,805
- 224,805
245,799
20,994
Regular pay
1,205,697
- 1,205,697
1,249,435
43,738
Part-time pay
60,200
- 60,200
66,860
6,660
Overtime pay
109,158
- 109,158
113,163
4,005
Holiday overtime
35,463
- 35,463
45,000
9,537
Training overtime
30,461
- 30,461
32,499
2,038
Outside services pay
2,851
- 2,851
-
(2,851)
Special pay
21,211
- 21,211
21,202
(9)
Holiday gifts
2,700
- 2,700
2,700
-
FICA
125,546
- 125,546
137,061
11,515
Pension-general employees
36,447
- 36,447
36,447
-
Pension-police and fire
17,068
- • 17,068
68,273
51,205
Health insurance
112,562
- 112,562
105,114
(7,448)
Life insurance
9,571
- 9,571
14,416
4,845
LTD insurance
12,106
- 12,106
13,070
964
Worker's compensation
92,132
- 92,132
123,768
31,636
Operating expenses:
Physical exams
5,259
- 5,259
6,165
906
Laundry&dry cleaning
19,597
- 19,597
22,500
2,903
Travel
10,507
- 10,507
14,100
3,593
Rental-equipment
7,604
1,000 8,604
11,100
2,496
Insurance-law enforcement
liability
800
- 800
800
-
R&M automotive
8,826
- 8,826
8,800
(26)
Continued
on the following page...
Financial Section 49
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses-
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable r
Actual Current Year Basis Budget (Unfavorable)
R&M machinery
&equipment $ 15,296 $ (50) $ 15,246 $ 15,722 $ 476
R&M PA &communication 8,808 (2,493) 10,313 12,000 1,687
3,998
R&M computer
4,632
- 4,632
6,646
2,014
Printing and binding
3,242
- 3,242
6,450
3,208
Photographic
4,405
- 4,405
4,440
35
Employee relations
899
- 899
1,000
101
Advertising
2,642
- 2,642
3,000
358
Licenses&fees
2,966
- 2,966
3,050
84
Prisoner and jail expenses
411
- 411
500
89
Special investigation
2,000
- 2,000
2,100
100
Victim examination fee
-
- -
250
250
Appreciation Banquet
5,470
- 5,470
5,400
(70)
Office supplies
5,562
- 5,562
5,900
338
Machinery&equipment
supplies
18
- 18
500
482
Auto parts supplies
13,609
- 13,609
14,000
391
Safety supplies
5,508
- 5,508
5,660
152
Chemicals
545
- 545
700
155
Gas, oil &lubricants
35,953
- 35,953
35,953
-
Refreshments&supplies
1,360
- 1,360
1,746
386
Uniforms&shoes
23,966
- 23,966
25,200
1,234
Ammunition and gun parts
8,075
- 8,075
10,175
2,100
Fingerprinting supplies
1,815
- 1,815
2,000
185
Publications&
subscriptions
952
(490) 462
1,102
640
Membership&dues
1,196
- 1,196
1,675
479
Conference&seminars
305
- 305
800
495
Training&education
6,440
1,779 8,219
19,451
11,232
2nd dollar education
951
- 951
2,500
1,549
Capital outlay:
Capital
12,683
- 12,683
12,893
210
Automotive
60,428
- 60,428
60,879
451
Computer hardware
&software
950
- 950
1,450
500
Office equipment
1,910
- 1,910
1,900
(10)
Audio, visual&
communication
13,370
- 13,370
21,659
8,289
Total Law Enforcement
2,396,938
3,744 2,400,682
2,624,973
224,291
Continued on the following page
50 Financial Section
J
1
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other
Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances
on
Variance
(Prior Year)
Budgetary
Revised
Favorable
Actual Current Year
Basis
Budget
(Unfavorable)
Fire Prevention:
Personal services:
Executive salaries
$ 61,409 $ -
$ 61,409
$ 61,392
$ (17)
Regular pay
169,213 -
169,213
217,385
48,172
Overtime pay
31,596 -
31,596
31,608
12
Holiday overtime
7,221 -
7,221
7,265
44
Training overtime
11,830 -
11,830
11,775
(55)
Special pay
4,470 -
4,470
8,355
3,885
Holiday gifts
1,150 -
1,150
1,150
-
FICA
20,900 -
20,900
27,545
6,645
Pension-police&fire
4,469 -
4,469
18,003
13,534
Volunteer length of service award
9,208 -
9,208
11,000
1,792
Health insurance
23,601 -
23,601
22,039
(1,562)
Life insurance
1,458 -
1,458
2,739
1,281
LTD insurance
1,666 -
1,666
2,546
880
Worker's compensation
17,304 -
17,304
23,264
5,960
Operating expenses:
Physical exams
300 -
300
3,260
2,960
Laundry and dry cleaning
2,880 -
2,880
2,900
20
Travel
1,793 -
1,793
3,200
1,407
R&M automotive
6,900 -
6,900
7,000
100
R&M machinery&equipment
2,981 -
2,981
2,919
(62)
R&M PA&communication
2,093 -
2,093
2,200
107
R&M computer
690 -
690
690
-
Licenses&fees
261 -
261
345
84
Volunteer appreciation
3,032 -
3,032
3,100
68
Office supplies
1,370 -
1,370
1,725
355
Audio,visual&communication
6,845 -
6,845
7,304
459
Machinery&equipment supplies
4,125 -
4,125
4,660
535
Auto parts supplies
3,062 -
3,062
3,000
(62)
Chemicals
521 -
521
900
379
Gas,oil and lubricants
4,610 -
4,610
4,900
290
Refreshments and supplies
367 -
367
400
33
Uniforms and shoes
8,021 -
8,021
8,020
(1)
Flashlights&batteries
769 -
769
800
31
Uniforms-volunteers
8,335 -
8,335
21,250
12,915
Publications &subscriptions
1,446 -
1,446
1,651
205
Membership&dues
295 -
295
295
-
Conference&seminars
250 -
250
300
50
Training&education
2,589 -
2,589
5,750
3,161
Capital outlay:
Automotive
- -
-
56,500
56,500
Computer hardware&software
1,800 -
1,800
1,800
-
Continued on the following page...
Financial Section 51
i
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses-
Personal services:
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Executive salaries
-
Year Ended September 30, 2001
30
30
Regular pay
524,674
Actual
524,640
(34)
Encumbrances
on
- 75,612
Variance
(Prior Year) Budgetary
Holiday overtime
Revised
Favorable
Actual Current Year
Basis
Budget
(Unfavorable)
Audio,visual&
15,600
(40)
Special pay
communication $ 2,642 $ - $
2,642
$ 2,687
$ 45
Machinery&equipment 69,025 -
69,025
26,300
(42,725)
Total Fire Prevention 502,497 -
502,497
619,922
117,425
Emergency Medical Service:
Personal services:
Executive salaries
-
- -
30
30
Regular pay
524,674
- 524,674
524,640
(34)
Overtime pay
75,612
- 75,612
75,600
(12)
Holiday overtime
20,499
- 20,499
20,500
1
Training overtime
15,640
- 15,640
15,600
(40)
Special pay
3,600
- 3,600
3,540
(60)
Holiday gifts
650
- 650
650
-
FICA
47,416
- 47,416
47,449
33
Pension-general employees
26,715
- 26,715
26,715
-
Pension-police and fire
4,070
- 4,070
5,869
1,799
Health insurance
40,316
- 40,316
37,648
(2,668)
Life insurance
3,526
- 3,526
3,628
102
LTD insurance
3,443
- 3,443
4,128
685
Worker's compensation
28,445
- 28,445
33,059
4,614
Operating expenses:
Preventative medical service
902
- 902
1,700
798
Physical exams
40
- 40
2,250
2,210
Other professional services
11,000
- 11,000
13,200
2,200
Laundry &dry cleaning
6,975
- 6,975
7,000
25
Contractual services
2,723
- 2,723
2,759
36
Travel
1,447
- 1,447
1,448
1
Telephone
1,783
- 1,783
2,232
449
Electricity
1,803
- 1,803
2,200
397
Water&sewer
134
- 134
200
66
Rental-equipment
5,260
- 5,260
5,270
10
Insurance-EMT
-
- -
2,800
2,800
R&M automotive
3,480
- 3,480
4,900
1,420
R&M machinery&equipment
5,442
- 5,442
6,524
1,082
R&M PA&communication
2,015
- 2,015
2,000
(15)
Licenses&fees
7,436
- 7,436
7,875
439
Office supplies
1,720
- 1,720
1,800
80
Building maintenance supplies
43
- 43
300
257 l
Furniture/fixtures supplies
1,430
- 1,430
1,902
472
Machinery&equipment supplies
421
- 421
1,100
679
Auto parts supplies
3,502
- 3,502
3,600
98
Medical&safety supplies
17,948
- 17,948
17,886
(62)
Disaster supplies
684
- 684
1,000
316
Continued on the following page... i
52 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
Chemicals $
1,100 -
1,1vu
1,uuu
�Iuu)
Gas,oil &lubricants
6,394 -
6,394
6,445
51
Refreshments &supplies
- -
-
250
250
Uniforms& shoes
5,249 -
5,249
5,170
(79)
Flashlights &batteries
365 -
365
400
35
Publications &subscriptions
140 -
140
232
92
Membership &dues
- -
-
100
100
Conference&seminars
1,110 -
1,110
2,075
965
Training &education
8,361 -
8,361
8,530
169
Capital outlay:
21,391 -
21,391
25,902
4,511
Automotive
- -
-
12,400
12,400
Computer hardware&software
3,435 -
3,435
3,500
65
Audio,visual&
2,214 -
2,214
2,907
693
communication
6,327 -
6,327
6,340
13
Machinery&equipment
87,488 -
87,488
24,825
(62,663)
Total Emergency
Medical Service
990,763 -
990,763
960,269
(30,494)
Total public safety
3,890,198 3,744
3,893,942
4,205,164
311,222
Public Services:
Code Enforcement:
Personal services:
Executive salaries
137,160 -
137,160
137,157
(3)
Regular pay
135,690 -
135,690
156,784
21,094
Part-time pay
25,820 -
25,820
37,790
11,970
Overtime pay
281 -
281
650
369
Holiday gifts
425 -
425
425
-
FICA
21,391 -
21,391
25,902
4,511
Pension-general employees
38,856 -
38,856
38,856
-
Health insurance
23,594 -
23,594
21,963
(1,631)
Lifeinsurance
2,214 -
2,214
2,907
693
LTD insurance
888 -
888
849
(39)
Worker's compensation
18,773 -
18,773
25,345
6,572
Operating expenses:
Uniform rental
1,629 -
1,629
1,900
271
Contractual service
- -
-
1,550
1,550
Other contractual services
645 -
645
-
(645)
Travel
2,819 -
2,819
3,290
471
Telephone
10,683 -
10,683
10,700
17
Electricity
3,107 -
3,107
4,100
993
Water&sewer
387 -
387
500
113
R&M building&grounds
1,751 -
1,751
2,000
249
Continued on the following page...
Financial Section 53
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
R&M furniture&equipment
$ 3,479 $ -
$ 3,479
$ 4,000
$ 521
R&M PA &communication
3,025 (2,303)
722
750
28
Printing &binding
1,845 -
1,845
1,800
(45)
Reproduction
299 -
299
400
101
Employee relations
753 -
753
1,000
247
Advertising
7,444 -
7,444
7,400
(44)
County PW activities
300 -
300
300
-
Office supplies
4,531 -
4,531
5,000
469
Physical exams
- -
-
200
200
Building maintenance supplies
220 -
220
800
580
Auto parts supplies
1,791 -
1,791
3,500
1,709
Custodial supplies
710 -
710
800
90
Gas, oil &lubricants
3,248 -
3,248
4,000
752
Refreshments&supplies
578 -
578
500
(78)
Publications&subscriptions
588 -
588
790
202
Membership&dues
730 -
730
1,290
560
Conference&seminars
615 -
615
1,350
735
Training&education
2,463 -
2,463
3,500
1,037
Capital outlay:
181
- 181
300
119
Automotive
106 -
106
12,600
12,494
Computer hardware&software
1,505 -
1,505
1,500
(5)
Total Code Enforcement
460,343 (2,303)
458,040
524,148
66,108
Facilities Maintenance:
Personal services:
Regular pay
217,152
- 217,152
222,145
4,993
Overtime pay
2,466
- 2,466
3,130
664
Holiday gifts
400
- 400
400
-
FICA
16,074
- 16,074
17,430
1,356
Pension-general employees
27,343
- 27,343
27,343
-
Health insurance
22,236
- 22,236
20,765
(1,471) l
Life insurance
1,526
- 1,526
2,078
552 J
L
LTD insurance
351
- 351
656
305
Worker's compensation
12,432
- 12,432
16,713
4,281
Operating expenses:
Physical exams
88
- 88
200
112
Uniform rental
2,178
- 2,178
2,100
(78)
R&M machinery &equipment
706
- 706
850
144
R&M PA&communication
9
- 9
-
(9)
Shop tools&supplies
770
- 770
750
(20)
Auto parts supplies
1,129
- 1,129
2,000
871
Tires&tubes
181
- 181
300
119
Gas,oil&lubricants
4,738
- 4,738
4,700
(38)
Continued on the following page... �
J
54 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
General Services:
Actual
Operating expenses:
Encumbrances
on
Telephone
Variance
- 27,577
27,610
(Prior Year)
Budgetary
Revised
Favorable
1,395
Actual
Current Year
Basis
Budget
(Unfavorable)
Uniforms&shoes
$ 305
$ -
$ 305
$ 400
$ 95
Capital outlay:
2,396
- 2,396
2,396
-
Solid waste disposal
Automotive
11,916
-
11,916
5,400
(6,516)
Total Facilities Maintenance
322,000
-
322,000
327,360
5,360
General Services:
Operating expenses:
Telephone
27,577
- 27,577
27,610
33
Postage
1,394
- 1,394
1,395
1
Electricity
42,862
- 42,862
42,500
(362)
Water and sewer
2,476
- 2,476
2,475
(1)
Gas
2,396
- 2,396
2,396
-
Solid waste disposal
1,526
- 1,526
1,600
74
Rental-copier equipment
6,574
- 6,574
7,016
442
R&M building&grounds
5,286
7,902 13,188
13,250
62
R&M furniture&equipment
806
- 806
850
44
Building maintenance supplies
1,576
- 1,576
1,600
24
Furniture&fixtures
1,571
- 1,571
1,630
59
Irrigation supplies
253
- 253
300
47
Machinery&equipment
Continued on the following page...
supplies
867
- 867
1,250
383
Fertilizers
1,245
- 1,245
1,350
105
Custodial supplies
3,463
- 3,463
3,400
(63)
Refreshment and supplies
3,474
- 3,474
3,500
26
Capital outlay:
Computer hardware&software
1,366
- 1,366
1,449
83
Total General Services
104,712
7,902 112,614
113,571
957
Solid Waste Collection:
Personal services:
Regular pay
523,809
- 523,809
530,134
6,325
Overtime pay
1,318
- 1,318
1,500
182 -
Holiday overtime
5,122
- 5,122
5,200
78
Holiday gifts
1,100
- 1,100
1,100
-
FICA
39,046
- 39,046
43,652
4,606
Pension-general employees
68,470
- 68,470
68,470
-
Health insurance
60,084
- 60,084
56,062
(4,022)
Life insurance
4,316
- 4,316
5,263
947
LTD insurance
1,908
- 1,908
1,885
(23)
Worker's compensation
31,446
- 31,446
40,306
8,860
Operating expenses:
Preventative medical supplies
-
- -
450
450
Continued on the following page...
Financial Section 55
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses-
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Street Maintenance:
Personal services:
Executive salaries
Regular pay
Overtime pay
Holiday gifts
FICA
Pension-general employees
Health insurance
Life insurance
LTD insurance
Worker's compensation
Operating expenses:
Physical exams
Other professional services
51,750
- 51,750
51,751
Actual
- 207,891
224,294
I
- 551
600
Encumbrances
on
550
Variance
- 19,072
23,305
(Prior Year)
Budgetary
Revised
Favorable
- 30,965
Actual
Current Year
Basis
Budget
(Unfavorable)
- 787
Physical exams
$ 401
$ -
$ 401
$ 600
$ 199
Uniform rental
6,463
-
6,463
6,400
(63)
1,000
Solid waste disposal
87,681
-
87,681
88,400
719
Irrigation supplies
R&M PA&communication
358
-
358
400
42
Advertising
1,069
-
1,069
1,100
31
Shop tools&supplies
648
-
648
1,000
352
Auto parts supplies
41,922
-
41,922
42,000
78
Tires&tubes
11,458
-
11,458
11,500
42
Chemicals
40
-
40
600
560
Gas, oil, &lubricants
39,029
39,029
39,000
(29)
Oil-grease
1,275
-
1,275
2,000
725
Uniforms&shoes
2,461
-
2,461
3,000
539
Recycling program
692
-
692
693
1
Capital outlay:
Automotive
105,553
-
105,553
108,200
2,647
Total Solid Waste Collection
1,035,669
-
-
1,035,669
1,058,915
23,246
Street Maintenance:
Personal services:
Executive salaries
Regular pay
Overtime pay
Holiday gifts
FICA
Pension-general employees
Health insurance
Life insurance
LTD insurance
Worker's compensation
Operating expenses:
Physical exams
Other professional services
51,750
- 51,750
51,751
207,891
- 207,891
224,294
551
- 551
600
550
- 550
550
19,072
- 19,072
23,305
36,558
- 36,558
36,558
30,965
- 30,965
28,916
1,945
- 1,945
2,827
787
- 787
1,137
16,910
- 16,910
22,804
1
16,403
49
4,233
(2,049)
882
350
5,894
88 - 88 400 312
7,200 (1,821) 7,194 12,237 5,043
1,815
Uniform rental
2,640 -
2,640
2,600
(40)
Electricity
48,846 -
48,846
50,000
1,154
Water&sewer
19,773 -
19,773
20,000
227
Rental-equipment
610 -
610
650
40
R&M street resurfacing
30,448 -
30,448
30,400
(48)
R&M street paving
64,228 -
64,228
66,000
1,772
R&M storm drainage system
10,472 (15,050)
(4,578)
1,000
5,578
Street striping
285 -
285
1,000
715
Shop tools&supplies
1,454 -
1,454
1,600
146
Irrigation supplies
5,852 -
5,852
6,000
148
Continued on the following page...
56 Financial Section
9
1
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Personal services:
Budget and Actual(Budgetary Basis)
- General Fund(Continued)
Regular pay
51,033
Year Ended September 30, 2001
50,997
(36)
Overtime pay
622
- 622
800
Actual
Holiday gifts
200
- 200
Encumbrances
on
FICA
Variance
- 3,876
(Prior Year)
Budgetary
Revised
Favorable
- 11,406
Actual Current Year
Basis
Budget
(Unfavorable)
Machinery &equipment supplies
$ 2,692 $ -
$ 2,692
$ 2,700
$ 8
Auto parts supplies
3,830 -
3,830
4,000
170
Street light supplies
1,570 -
1,570
1,600
30
Tires&tubes
12 -
12
1,500
1,488
Trees &sod
2,976 -
2,976
8,400
5,424
Fertilizers
5,199 -
5,199
6,000
801
Traffic control signs
3,547 -
3,547
4,000
453
Fences-alleys
844 -
844
900
56
Catch basin grates
1,876 -
1,876
2,500
624
Gas,oil and lubricants
9,832 -
9,832
9,800
(32)
Uniforms and shoes
1,282 -
1,282
1,450
168
Asphalt, shell and concrete
6,926 -
6,926
9,200
2,274
Capital outlay:
1,525
131
Licenses &fees
50
Automotive
2,199 -
2,199
9,700
7,501
Machinery and equipment
1,700 -
1,700
1,750
50
Total Street Maintenance
603,360 (15,056)
588,304
648,129
59,825
Mechanical Maintenance:
Personal services:
Regular pay
51,033
- 51,033
50,997
(36)
Overtime pay
622
- 622
800
178
Holiday gifts
200
- 200
200
-
FICA
3,876
- 3,876
4,971
1,095
Pension-general employees
11,406
- 11,406
11,406
-
Health insurance
7,203
- 7,203
8,546
1,343
Life insurance
577
- 577
878
301
LTD insurance
313
- 313
314
1
Worker's compensation
5,261
- 5,261
5,869
608
Operating expenses:
Uniform rental
1,150
- 1,150
1,100
(50)
Other contractual services
4
- 4
300
296
Telephone
99
- 99
400
301
Electricity
3,774
- 3,774
3,700
(74)
Water&sewer
1,246
- 1,246
1,400
154
Solid waste disposal
1,526
- 1,526
1,526
-
R&M building&grounds
2,672
- 2,672
2,799
127
R&M machinery&equipment
1,394
- 1,394
1,525
131
Licenses &fees
50
- 50
150
100
Shop tools &supplies
5,714
- 5,714
5,700
(14)
Building maintenance supplies
699
- 699
1,000
301
Machinery &equipment supplies
553
- 553
600
47
Auto parts supplies
368
- 368
7D0
332
Continued on the following page...
Financial Section 57
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Park Maintenance:
Actual
Personal services:
Encumbrances
on
Regular pay
Variance
- 187,497
195,120
(Prior Year)
Budgetary
Revised
Favorable
46,020
Actual
Current Year
Basis
Budget
(Unfavorable)
(95)
Holiday gifts
475
- 475
475
-
Tires&tubes
$ 319
$ -
$ 319
$ 300
$ (19)
Chemicals
769
-
769
800
31
Custodial supplies
1,774
-
1,774
1,700
(74)
Gas,oil &lubricants
1,110
-
1,110
1,260
150
Uniforms and shoes
141
-
141
250
109
Capital outlay:
Physical exams
Construction &major renovation
10,482
-
10,482
10,400
(82)
Total Mechanical
2,000
301
Uniform rental
2,182
- 2,182
Maintenance
114,335
-
114,335
119,591
5,256
Park Maintenance:
Personal services:
Regular pay
187,497
- 187,497
195,120
7,623
Part-time pay
36,846
- 36,846
46,020
9,174
Overtime pay
7,795
- 7,795
7,700
(95)
Holiday gifts
475
- 475
475
-
FICA
14,591
- 14,591
16,267
1,676
Pension-general employees
24,135
- 24,135
24,135
-
Health insurance
21,032
- 21,032
19,640
(1,392)
Life insurance
1,295
- 1,295
1,817
522
LTD insurance
571
- 571
541
(30)
Worker's compensation
11,494
- 11,494
15,499
4,005
Operating expenses:
Physical exams
264
- 264
200
(64)
Other professional services
1,699
- 1,699
2,000
301
Uniform rental
2,182
- 2,182
2,100
(82)
Tree trimming
3,000
- 3,000
3,000
-
Electricity
2,836
- 2,836
3,700
864
Solid waste disposal
4,070
- 4,070
4,070
-
Rental-equipment
120
- 120
500
380
R&M marina
2,081
- 2,081
2,500
419
R&M streets,roads&paths
132
- 132
300
168
Printing&binding
315
- 315
350
35
Shop tools &supplies
1,222
- 1,222
1,800
578
Building maintenance supplies
15,267
- 15,267
15,300
33
Irrigation supplies
4,553
- 4,553
5,315
7,62
Machinery&equipment supplies
4,296
- 4,296
4,300
4
Auto parts supplies
2,211
- 2,211
2,500
289
Tires&tubes
790
- 790
900
110
Trees&sod
3,241
- 3,241
4,000
759
Fertilizers
14,950
- 14,950
14,900
(50)
Sand/clay/shell/topsoil
4,109
- 4,109
5,000
891
Lime for ballfields
626
- 626
900
274
Continued on the following
page...
58 Financial Section
i
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
Chemicals
$ 918 $ -
$ 918
$ 1,000
$ 82
Gas, oil and lubricants
3,271 -
3,271
4,000
729
Uniforms and shoes
713 -
713
630
(83)
Capital outlay:
52,678
- 52,678
52,641
(37)
Automotive
26,561 -
26,561
4,985
(21,576)
Machinery&equipment
6,880 -
6,880
7,000
120
Total Park Maintenance
412,038 -
412,038
418,464
6,426
Total public services
3,052,457 (9,457)
3,043,000
3,210,175
167,175
Leisure services:
Library:
Personal services:
Executive salaries
52,678
- 52,678
52,641
(37)
Regular pay
224,432
- 224,432
239,831
15,399
Part-time pay
52,393
- 52,393
67,325
14,932
Holiday gifts
650
- 650
650
-
FICA
24,411
- 24,411
27,717
3,306
Pension-general employees
35,061
- 35,061
35,061
-
Health insurance
20,569
- 20,569
19,208
(1,361)
Life insurance
1,773
- 1,773
2,481
708
LTD insurance
243
- 243
350
107
Worker's compensation
20,093
- 20,093
27,172
7,079
Operating expenses:
Physical exams
-
- -
165
165
Professional services
3,000
(3,000) -
-
-
Other contractual services
775
- 775
900
125
Travel
1,073
- 1,073
1,175
102
Telephone
7,607
- 7,607
7,600
(7)
Electricity
16,381
- 16,381
17,200
819
Water&sewer
1,765
- 1,765
2,000
235
Solid waste disposal
286
- 286
400
114
Rental-equipment
2,071
- 2,071
2,460
389
Rental-film/exhibit
232
- 232
300
68
R&M building&grounds
644
- 644
640
(4)
R&M windows
400
- 400
400
-
R&M carpet
1,425
- 1,425
1,425
-
R&M furniture&office
equipment
5,493
- 5,493
6,270
777
R&M machinery &
equipment
1,027
- 1,027
1,100
73
R&M elevator
1,514
- 1,514
1,518
4
R&M PA&communication
-
- -
200
200
Continued on the following
page...
Financial Section 59
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
R&M computer
$ 1,937 $ -
$ 1,937
$ 3,000
$ 1,063
Printing &binding
3,655 -
3,655
4,305
650
Employee relations
565 -
565
800
235
Licenses&fees
104 -
104
260
156
Office supplies
4,522 -
4,522
4,500
(22)
Computer supplies
487 -
487
600
113
Building maintenance
481
542
- 542
744
supplies
852 -
852
825
(27)
Furniture maintenance
supplies
299 -
299
300
1
Irrigation supplies
96 -
96
500
404
Machinery&equipment
supplies
803 -
803
1,000
197
Fertilizers
6 -
6
165
159
Chemicals
175 -
175
175
-
Custodial supplies
1,805 -
1,805
1,800
(5)
Photocopies&reproducing
845 -
845
1,000
155
Refreshments&supplies
646 -
646
600
(46)
Membership&dues
495 -
495
595
100
Conference&seminars
160 -
160
280
120
Training&education
172 -
172
450
278
Capital outlay:
Computer hardware&software
2,606 -
2,606
2,797
191
Furniture&fixtures
591 -
591
560
(31)
Audio, visual &
communication
- -
-
624
624
Machinery&equipment
600 -
600
760
160
Books&publications
55,107 -
55,107
55,100
(7)
Audio book collection
2,853 -
2,853
3,000
147
Video cassette
4,046 -
4,046
4,000
(46)
Total Library
559,423 (3,000)
556,423
604,185
47,762
Recreation:
Personal services:
Executive salaries
Regular pay
Part-time pay
Holiday gifts
FICA
Pension-general employees
Health insurance
Life insurance
LTD insurance
55,702
- 55,702
55,703
1
118,958
- 118,958
119,417
459
98,321
- 98,321
103,073
4,752
450
- 450
500
50
20,521
- 20,521
20,505
(16)
21,014
- 21,014
21,014
-
12,622
- 12,622
11,787
(835)
1,148
- 1,148
1,629
481
542
- 542
744
202
Continued on the following page... i
60 Financial Section I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses -
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Actual
Worker's compensation
Operating expenses:
Physical exams
Travel
Encumbrances on Variance
(Prior Year) Budgetary Revised Favorable
Actual Current Year Basis Budget (Unfavorable)
$ 13,449 $
3,103
13,449 $ 14,240 $ 791
- 165 165
3,103 3,350 247
Telephone
11,643
-
11,643
11,600
(43)
Electricity
75,930
-
75,930
77,800
1,870
Water and sewer
11,846
-
11,846
12,000
154
Solid waste disposal
1,839
-
1,839
1,900
61
R&M building &grounds
7,253
-
7,253
7,200
(53)
R&M furniture&equipment
6
-
6
250
244
R&M PA&communication
1,129
(2,303)
(1,174)
1,200
2,374
Printing&binding
235
-
235
350
115
Employee relations
448
-
448
800
352
Advertising
245
-
245
350
105
Trophies, awards &prizes
-
-
-
300
300
Office supplies
2,101
-
2,101
2,100
(1)
Photo supplies
167
-
167
200
33
Building maintenance supplies
7,041
-
7,041
7,050
9
Furniture maintenance supplies
(401)
-
(401)
220
621
Machinery &equipment supplies
942
-
942
1,000
58
Auto parts supplies
80
-
80
100
20
Nets&tapes
768
-
768
1,000
232
Playground supplies
2,848
-
2,848
3,000
152
Arts&crafts supplies
2,486
-
2,486
2,500
14
Medical &safety supplies
350
-
350
350
-
Custodial supplies
9,845
-
9,845
10,200
355
Gas,oil &lubricants
1,052
-
1,052
1,000
(52)
Refreshments&supplies
-
-
-
250
250
Uniforms&shoes
1,167
-
1,167
1,200
33
Membership &dues
645
-
645
690
45
Conference&seminars
936
-
936
1,000
64
Training&education
-
-
-
650
650
Capital outlay:
Playground&outside equipment
28,390
2,992
31,382
32,300
918
Ball field improvements
10,153
-
10,153
13,400
3,247
Furniture&fixtures
5,608
(3,258)
2,350
2,500
150
Total Recreation
530,582
(2,569)
528,013
546,587
18,574
Special Events:
Operating expenses:
Music&talent 2,365
- 2,365 2,300 (65)
Rental-equipment 1,313
- 1,313 1,544 231
Public events 36,635
- 36,635 37,000 365
Continued on the following page...
Financial Section 61
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenditures and Other Financing Uses-
Budget and Actual(Budgetary Basis) - General Fund(Continued)
Year Ended September 30, 2001
Total leisure services 1,148,258 (5,569) 1,142,689 1,212,372 69,683
Other:
Council contingency:
Village Manager contingency 91 - 91 100 9
Council contingency - - - 59,337 59,337
Insurance:
526,907
- 526,907
Actual
93
Reserve-group health
200,000
- 200,000
Encumbrances
on
Benefits and awards:
Variance
- 782,190
861,000
(Prior Year)
Budgetary
Revised
Favorable
4,082
Actual
Current Year
Basis
Budget
(Unfavorable)
40
Safety and attendance
Employees' summer outing
$ 3,195
$ - •
$ 3,195
$ 6,000
$ 2,805
Furniture&fixture supplies
2,501
-
2,501
2,502
1
Refreshments&supplies
1,026
-
1,026
1,036
10
Capital outlay:
Machinery and equipment
11,218
-
11,218
11,218
-
Total Special Events
58,253
-
58,253
61,600
3,347
Total leisure services 1,148,258 (5,569) 1,142,689 1,212,372 69,683
Other:
Council contingency:
Village Manager contingency 91 - 91 100 9
Council contingency - - - 59,337 59,337
Insurance:
526,907
- 526,907
527,000
93
Reserve-group health
200,000
- 200,000
200,000
-
Benefits and awards:
782,190
- 782,190
861,000
78,810
Reserve-miscellaneous
3,608
- 3,608
4,082
474
Reserve-accrued benefits
89,760
- 89,760
89,800
40
Safety and attendance
awards
9,719
- 9,719
9,700
(19)
Total other
303,178
- 303,178
363,019
59,841
Debt service:
Debt service principal
526,907
- 526,907
527,000
93
Debt service interest
255,283
- 255,283
334,000
78,717
Total debt service
782,190
- 782,190
861,000
78,810
Total expenditures
$ 10,399,389
$ (281,978) $ 10,117,411
$ 11,194,270
$ 1,076,859
d
62 Financial Section 1
�I
Capital
Projects
Fund
Financial Section 63
I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual- Capital Projects Fund
From Inception and for the Year Ended September 30, 2001
Expenditures:
Project
Authorization
Current
Year
Total
to Date
Revenues:
Grants
$ 1,000,000
$ -
$ -
Interest
-
50,400
50,400
Total revenues
1,000,000
50,400
50,400
Expenditures:
Capital outlay:
Canal dredging project
1,400,000
40,196
40,196
Village Hall renovations:
Buildings
1,200,000
104,433
104,433
North sub station:
Buildings
93,500
2,800
2,800 i
Prosperity Farms Road improvement:
Construction and major renovation
1,000,000
60,000
11
60,000
Conroy Drive water main:
Construction and major renovation
76,000
Anchorage Park parking lot:
Construction and major renovation
93,500
-
-
Reserves:
l
Council contingency
13,000
-
- J
i
Total capital outlay
3,876,000
207,429
207,429
Total expenditures
3,876,000
207,429
207,429
Deficiency of revenues
under expenditures (2,876,000) (157,029) (157,029)
Other financing sources:
Loan proceeds 2,800,000 2,800,000 2,800,000
Total other financing sources 2,800,000 2,800,000 2,800,000
Excess(deficiency) of revenue and other
financing sources over(under)expenditures
and other financing uses
(76,000) 2,642,971 2,642,971
Fund balances,beginning of year 76,000 173,005
Fund balances, end of year $ - $ 2,815,976
Continued on the following page...
64 Financial Section
I
Enterprise
Fund
Financial Section 65
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues - Budget and Actual- Country Club Fund
Year Ended September 30, 2001
Tennis:
Budget
Actual
Variance
Favorable
(Unfavorable)
Operating revenue:
27,700
28,088
388
Membership dues:
42,500
49,851
7,351
Golf:
885,282
807,736
(77,546)
Resident
$ 315,000
$ 294,630
$ (20,370)
Nonresident
420,000
416,041
(3,959)
Social:
852,370
851,698
(672)
Resident
397
717
320
Nonresident
273
1,500
1,227
Tennis:
j
Daily fees
Resident
27,700
28,088
388
Nonresident
42,500
49,851
7,351
Pool:
885,282
807,736
(77,546)
Resident
17,500
24,222
6,722
Nonresident
29,000
36,649
7,649
Total membership dues
852,370
851,698
(672)
Sports activities:
j
Daily fees
Golf:
41,329 1,329 j
Pool rental
21,000
Greens fees
302,565
286,061
(16,504)
Golf cart rental
885,282
807,736
(77,546)
Locker rentals
4,000
3,441
(559)
Driving range
150,000
156,206
6,206
Golf shop
75,000
95,461
20,461
Bag room
11,000
11,673
673
Lessons
7,000
3,798
(3,202)
Other
45,250
41,216
(4,034)
Tennis:
Guest fees
25,000
23,087
(1,913)
Court rental
4,500
4,758
258
Lease
3,874
2,260
(1,614)
Other
500
189
(311)
Pool:
j
Daily fees
40,000
41,329 1,329 j
Pool rental
21,000
23,167 2,167
Locker rentals
150
- (150)
Lease
3,874
- (3,874)
Other
4,000
3,715 (285)
Total sports activities
1,582,995
1,504,097 (78,898)
Continued on the following page...
66 Financial Section
s
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues - Budget and Actual- Country Club Fund(Continued)
Year Ended September 30, 2001
Financial Section 67
Variance
Favorable
Budget
Actual
(Unfavorable)
Miscellaneous:
Lease income-food and beverage
$ 87,000
$ 70,959
$ (16,041)
Discounts earned
300
360
60
Utilities refund -food and beverage
11,000
29,813
18,813
Principal and interest reimbursement
-
6,659
6,659
Other
6,000
16,758
10,758
Total miscellaneous
104,300
124,549
20,249
Total operating revenue
2,539,665
21480,344
(59,321)
Nonoperating revenue:
Interest income
70,000
17,188
(52,812)
Total nonoperating revenue
70,000
17,188
(52,812)
Total revenues
$ 2,609,665
$ 2,497,532
$ (112,133)
Financial Section 67
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Expenses - Budget and Actual- Country Club Fund
Year Ended September 30, 2001
Variance
Favorable
Administrative and general 403,167 383,015 20,152
Depreciation - 290,159 (290,159)
Total operating expenses 2,379,665 2,558,777 (179,112)
Nonoperating expenses:
Interest expense 230,000 45,810 184,190
Loss on disposal of fixed assets - 128,149 (128,149)
Total nonoperating expenses 230,000 173,959 56,041
Total expenses $ 2,609,665 $ 2,732,736 $ (123,071)
68 Financial Section
t
,l
i
Budget
Actual
(Unfavorable)
Operating expenses:
Sports activities:
Golf:
Golf course maintenance
$ 844,232
$ 804,624
$ 39,608
Golf shop
547,068
534,847
12,221
Tennis
111,262
104,766
6,496
Pool
242,989
221,439
21,550
Total sports activities
1,745,551
1,665,676
79,875
Clubhouse:
Food and beverage
41,080
39,991
1,089
Clubhouse grounds and maintenance
189,867
179,936
9,931
Total clubhouse
230,947
219,927
11,020
Administrative and general 403,167 383,015 20,152
Depreciation - 290,159 (290,159)
Total operating expenses 2,379,665 2,558,777 (179,112)
Nonoperating expenses:
Interest expense 230,000 45,810 184,190
Loss on disposal of fixed assets - 128,149 (128,149)
Total nonoperating expenses 230,000 173,959 56,041
Total expenses $ 2,609,665 $ 2,732,736 $ (123,071)
68 Financial Section
t
,l
i
Trust
Funds
Financial Section 69
THE VILLAGE OF NORTH PALM REACH, FLORIDA
Combining Balance Sheet- Trust and Agency Funds
September 30, 2001
Pension Trust
Fire and
General Police
Employees Officers
Assets -
Cash and cash equivalents $ 67,329 $ 285,609
Investments 6,440,405 5,292,737
Accounts receivable 130 21,192
Interest receivable - 42,955
Total assets $ 6,507,864 $ 5,642,493
Liabilities and Equity
Liabilities:
Accounts payable $ 12,095 $ 1,542
Due to others - -
Total liabilities 12,095 1,542
Equity:
Fund balances:
Reserved for employees'
pension benefits 6,495,769 5,640,951
Total equity 6,495,769 5,640,951
Total liabilities & equity $ 6,507,864 $ 5,642,493
70 Financial Section
i
Agency Funds
Manatee Northlake
Protection Boulevard
Agency Task Force Total
$ 220,909 $ 20,382 $ 594,229
- - 11,733,142
- 21,322
- 42,955
$ 220,909 $ 20,382 $ 12,391,648
$ - $ - $ 13,637
220,909 20,382 241,291
220,909 20,382 254,928
12,136,720
12,136,720
$ 220,909 $ 20,382 $ 12,391,648
Financial Section 71
i
THE !TILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Plan Net Assets -All Pension Trust Funds
September 30, 2001
Pension Trust 1
Liabilities
Accounts payable 12,095 1,542 13,637
Net assets held in trust for
pension benefits $ 6,495,769 $ 5,640,951 $ 12,136,720
72 Financial Section
I
Fire and
General
Police
Employees
Officers
Total
Assets
Cash and cash equivalents
$ 67,329
$ 285,609
$ 352,938
Investments, at fair value
6,440,405
5,292,737
11,733,142
Accounts receivable
130
21,192
21,322
Interest receivable
-
42,955
42,955
Total assets
6,507,864
5,642,493
12,150,357
Liabilities
Accounts payable 12,095 1,542 13,637
Net assets held in trust for
pension benefits $ 6,495,769 $ 5,640,951 $ 12,136,720
72 Financial Section
I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Changes in Net Plan Assets
All Pension Trust Funds
Year Ended September 30, 2001
Investment income:
General
Employees
Fire and
Police
Officers
Total
Additions:
996
174,894
175,890
Contributions:
190,330
42,024
232,354
Employer
$ 447,128
$ 25,607
$ 472,735
State of Florida
-
108,201
108,201
Plan member
92,198
33,337
125,535
Total contributions
539,326
167,145
706,471
Investment income:
Interest
996
174,894
175,890
Dividends
190,330
42,024
232,354
Net depreciation in fair value of investments
(501,443)
(548,250)
(1,049,693)
Investment expense
(50,417)
(29,032)
(79,449)
Total investment loss
(360,534)
(360,364)
(720,898)
Total additions
178,792
(193,219)
(14,427)
Deductions:
Administration 25,094 31,258 56,352
Benefits 450,044 301,528 751,572
Total deductions 475,138 332,786 807,924
Net decrease (296,346) (526,005) (822,351)
Net assets held in trust for pension benefits,
beginning of year 6,792,115 6,166,956 12,959,071
Net assets held in trust for pension
benefits, end of year
$ 6,495,769 $ 5,640,951 $ 12,136,720
Financial Section 73
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Changes in Assets and Liabilities -All Agency Funds
Year Ended September 30, 2001
Balance Balance
October 1, September 30,
2000 Additions Deletions 2001
Manatee Protection Agency
Assets:
Cash and cash equivalents $ 209,652 $ 11,257 $ - $ 220,909
Liabilities:
Due to others
$
209,652
$
11,257
$
-
$
220,909
Northlake Boulevard Task Force
Assets:
Cash and cash equivalents
$
88,522
$
2,610
$
70,750
$
20,382
Liabilities:
Due to others
$
88,522
$
2,610
$
70,750
$
20,382
Totals - All Agency Funds
1
Assets:
J
Cash and cash equivalents
$
298,174
$
13,867
$
70,750
$
241,291
Liabilities
Due to others
$
298,174
$
13,867
$
70,750
$
241,291 `
74 Financial Section
J �
i
General
Fixed
Assets
Account
Group
Financial Section 75
This page intentionally left blank.
76 Financial Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of General Fixed Assets - By Source
September 30, 2001
General fixed assets:
Land and improvements $ 2,055,889
Buildings and improvements 8,602,533
Equipment 3,805,557
Library books and equipment 868,124
Total general fixed assets $ 15,332,103
Investment in general fixed assets by source:
General fund $ 7,058,344
Capital projects fund 8,273,759
Total investment in general fixed assets $ 15,332,103
Financial Section 77
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of General Fixed Assets - By Function and Activity
September 30, 2001
Land and Buildings and
Improvements Improvements
General government:
Village Manager $ - $ -
Finance - -
Village Clerk - -
General services 89,775 353,759
Total general government 89,775 353,759
Public safety:
Police department 1,228,766 4,255,790
Fire department - -
Emergency medical department - -
Total public safety 1,228,766 4,2559790
Public works:
Code enforcement
12,500 174,818
Facilities maintenance
- -
Sanitation- solid waste
- -
Street maintenance
- 23,227
Vehicle maintenance
- 564
Park maintenance
- -
Total public works
12,500 198,609
Culture/recreation:
Library - 370,468
Recreation 724,848 3,423,907
Total culture/recreation 724,848 3,794,375
$ 2,055,889 $ 8,602,533
78 Financial Section
, I
i
Library Books
Equipment and Equipment Total
$ 11,587 $ - $ 11,587
47,618 - 47,618
17,692 - 17,692
182,383 - 625,917
259,280 - 702,814
882,661
- 6,367,217
934,458
- 934,458
398,154
- 398,154
2,215,273
- 7,699,829
75,242
- 262,560
93,158
- 93,158
603,291
- 603,291
180,069
- 203,296
30,855
- 31,419
122,229
- 122,229
1,104,844
- 1,315,953
- 868,124 1,238,592
226,160 - 4,374,915
226,160 868,124 5,613,507
$ 3,805,557 $ 868,124 $ 15,332,103
Financial Section 79
i
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Changes in General Fixed Assets - By Function and Activity
Year Ended September 30, 2001
Balance
October 1,
2000 Additions
General_government:
Village Manager $ 12,856 $ -
Finance 53,687 17,745
Village Clerk 16,332 -
General services 182,383 -
General government land 89,775 -
General government buildings and improvements 353,759 -
Total general government 708,792 17,745
Public safety:
838,997
J
Police department
812,537
104,704
Fire department
888,597
93,822 i
Emergency medical department
323,663
85,444
Public safety land
1,228,766
JI
-
Public safety buildings and improvements
4,255,790
-
Total public safety
7,509,353
283,970
Public service land
12,500
Public works:
838,997
83,513
Code enforcement
75,292
1,000
Facilities maintenance
85,890
11,916
Sanitation - solid waste
573,236
105,554
Street maintenance
186,742
30,361
Vehicle maintenance
32,361
-
Park maintenance
133,196
6,880
Public service land
12,500
-
Public service buildings and improvements
172,068
2,750
Total public works
1,271,285
158,461
Culture/recreation:
Library books and equipment
838,997
83,513
Library building and improvements
370,468
-
Recreation
190,772
36,188
Recreation land
724,848
-
Recreation buildings and improvements
3,423,907
-
Totai culture/recreation
5,548,992
119,701
Total general fixed assets
$ 15,038,422
$ 579,877
J
80 Financial Section
Balance
September 30,
Deletions Transfers 2001
$ 2,292 $1,023 $ 11,587
21,431 (2,383) 47,618
- 1,360 17,692
- 182,383
- 89,775
- - 353,759
23,723 - 702,814
33,899 (681)
882,661
48,642 681
934,458
10,953 -
398,154
- -
1,228,766
- -
4,255,790
93,494 -
7,699,829
1,050 -
75,242
4,648 -
93,158
75,499 -
603,291
13,807 -
203,296
942 -
31,419
17,847 -
122,229
- -
12,500
- -
174,818
113,793 -
1,315,953
54,386 -
868,124
- -
370,468
800 -
226,160
- -
724,848
- -
3,423,907
55,186 -
5,613,507
$ 286,196 $ -
$ 15,332,103
Financial Section 81
This page intentionally left blank.
82 Financial Section
STA"J[ ISTdCA]L SECTIC91'+1
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
General Governmental Expenditures by Function
Last Ten Fiscal Years
Table I
Fiscal
General
Public
Public
Leisure
Capital
Debt
Year
Government
Safety
Services
Services
Outlay
Service
Other
Total
1992
$ 751,836
$2,211,633
$1,983,478
$ 603,273
$184,104
$37,807
$137,286
$5,909,417
1993
789,759
2,262,389
1,968,009
622,590
277,451
37,806
141,092
6,099,096
1994
868,031
2,191,033
2,127,065
670,643
270,946
29,943
144,178
6,301,839
1995
866,103
2,378,817
2,223,340
669,058
422,679
35,688
188,614
6,784,299
1996
948,997
2,705,393
2,412,502
690,046
527,699
41,696
138,020
7,464,353
1997
928,801
2,759,664
2,439,231
712,690
856,302
109,778
253,000
8,059,466
1998
947,839
2,865,117
2,425,110
791,373
332,324
79,930
194,306
7,635,999
1999
1,172,478
2,944,489
2,491,317
856,945
739,316
146,317
569,038
8,919,900
2000
1,211,403
3,191,976
2,806,141
991,603
727,258
765,297
442,494
10,136,172
2001
1,220,944
3,701,807
2,918,996
1,038,304
433,970
782,190
303,178
10,399,389
Note: The above expenditures are for the general fund.
Statistical Section 85
THE !VILLAGE OF NORTH PALM BEACH, FLORIDA
General Governmental Revenues by Source
Last Ten Fiscal Years
Note: The above revenues are for the general fund.
86 Statistical Section
Licenses
Charges
Fiscal
and
Inter-
for
Year
Taxes
Permits
governmental
Services-
1992- -- -
4,1-80,x.2-3- -
- $- 266,916 -
- - $ -93 334
231;34-5
1993
4,617,122
257,046
964,903
218,826
1994
4,976,695
317,642
1,030,089
195,332
1995
5,417,516
748,676
1,071,940
246,016
1996
5,429,150
453,912
1,352,609
219,447
1997
5,627,038
366,031
1,172,716
275,100
1998
6,116,651
509,055
1,379,295
342,863
1999
6,528,207
543,650
1,144,583
357,336
2000
6,794,249
756,419
1,273,110
437,811
2001
7,686,039
917,166
1,336,664
492,830
Note: The above revenues are for the general fund.
86 Statistical Section
Table II
Fines
and
Forfeitures
Interest
Miscellaneous
Total
$ 115,911
$ 98,657
$ 82,284
$ 5,907,670
111,004
72,395
76,788
6,318,084
73,423
90,706
116,126
6,800,013
97,993
191,427
96,630
7,870,198
97,886
248,700
93,635
7,895,339
156,281
201,759
129,890
7,928,815
128,140
213,637
96,113
8,785,754
119,185
239,372
95,893
9,028,226
149,690
290,413
139,419
9,841,111
244,921
247,931
108,551
11,034,102
Statistical Section 87
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Property Tax Levies and Collections
Last Ten Fiscal Years
Table III I 1
Percent
Delinquent
Total
Percent
Fiscal Total Current Tax of Levy
Tax
Tax
Collected
Year Tax Levy Collections Collected Collections Collections To Tax Levy
1992__
__ $_2935,533 _
_$ 2,793,999 _
95.1.8% _
_11,355
_ _$2805,354_
1993
3,281,385
3,141,952
95.75%
7,090
3,149,042
1994
3,454,871
3,335,241
96.54%
984
3,336,225
1995
3,780,663
3,646,758
96.46%
78
3,646,836
1996
3,704,613
3,577,517
96.57%
6,187
3,583,704
1997
3,701,075
3,574,562
96.58%
4,379
3,578,941
1998
4,105,193
3,961,574
96.50%
5,861
3,967,435
1999
4,327,943
4,166,035
96.26%
6,721
4,172,756
2000
4,512,027
4,335,668
96.09%
23,074
4,358,742
2001
5,196,021
5,013,269
96.48%
4,687
5,017,956
Source: Palm Beach County Property Appraiser
88 Statistical Section
95.57%
95.97%
96.57%
96.46%
96.74%
96.70%
96.64% j
96.41%
96.60%
96.57%
i
i
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Assessed Value of Taxable Property
Last Ten Fiscal Years
Fiscal
Real
Assessed Values
Personal
Year Property Property Total
Table IV
1992
$ 657,663,518 $
30,248,609
$ 687,912,127
1993
677,090,383
29,584,585
706,674,968
1994
675,501,648
29,573,967
705,075,615
1995
690,876,303
29,249,922
720,126,225
1996
694,725,948
31,668,828
726,394,776
1997
700,039,002
31,398,755
731,437,757
1998
724,341,193
35,879,717
760,220,910
1999
736,890,024
35,742,548
772,632,572
2000
767,696,404
36,071,964
803,768,368
2001
861,214,093
40,169,760
901,383,853
Note:
The basis of assessed value is approximately
one hundred percent
(100%) of actual value. For each
fiscal year ending September 30,property is valued as of January 1
st of the preceding calendar year.
Source:
Palm Beach County Property Appraiser
Statistical Section 89
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
(Per$1,000 of the Assessed Value)
Table V r
Source: Palm Beach County Property Appraiser.
90 Statistical Section
i
Village
Palm Beach
of North
County
Fiscal
Palm
Special
School
Palm Beach
-- -- - -- --- Year -
Beach--- -
- Districts --
--- -- -District- --
-
-- y Count -
`Total-
1992
4.26
2.297
9.785
4.644
20.986
1993
4.65
2.378
9.603
4.622
21.253
1994
4.90
2.453
10.063
4.550
21.966
1995
5.25
2.448
10.185
4.519
22.402
1996
5.10
2.485
9.797
4.519
21.901
1997
5.06
2.286
9.788
4.519
21.653
1998
5.40
2.360
9.557
4.867
22.184
1999
5.60
2:234
9.682
4.858
22.374
2000
5.60
2.262
8.918
4.936
21.716
2001
5.75
2.263
8.918
4.936
21.867
Source: Palm Beach County Property Appraiser.
90 Statistical Section
i
THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table VI
Computation of Direct and Overlapping Bonded Debt
General Obligation Bonds
September 30, 2001
Percentage Amount
Net General Applicable to Applicable to
Name of Bonded Debt The Village of The Village of
Governmental Unit Outstanding North Palm Beach(') North Palm Beach
Direct:
Village of North Palm Beach $ - 100.00% $ -
Overlapping:
Palm Beach County 267,485,000 1.25% 3,343,563
Palm Beach County
School District 221,080,000 1.25% 2,763,500
Total $ 488,565,000 $ 6,107,063
Estimated based on 2000 Ratio of Assessed Taxable Values
Source: Palm Beach County Property Appraiser
School Board of Palm Beach County,Finance Department
Village of North Palm Beach
Statistical Section 91
This page intentionally left blank.
92 Statistical Section
i
i
i
i
J
THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table VII
Computation of Legal Debt Margin
September 30, 2001
The Village Charter and the Constitution of the State of Florida, Florida State Statute 200.181, does not
provide for a legal debt limit.
Statistical Section 93
' 3
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Debt Related Statistics
Schedule of Revenue Bond Coverage
General and Enterprise Funds j
Last Ten Fiscal Years j
94 Statistical Section
Net
Revenue
Available
- --- -F-iscal-
- - --- - -Gross - - -- - - Expenditures/- ---
- - -For-Debt - -
Year
Revenue Expenses (l)
Service
1992
$ 7,764,064 $ 7,289,253
$ 474,811
1993
8,352,291 7,713,144
639,147
j
1994
9,189,523 8,415,414
774,109
1995
10,167,560 8,829,772
1,337,788 -
1996
1997
1998
* *
*
J
1999
2000
2001
Source:
Village of North Palm Beach
(1) Represents total General Fund and Country Club expenditures/expenses,
exclusive of depre-
ciation, debt service, and loss on disposal of fixed assets.
Revenue bonds were paid in full in 1995.
l
�l
I
I
I
94 Statistical Section
Debt Service Requirements
Principal
Interest
Total
Coverage
$ 140,000
$ 34,750
$ 174,750
2.72
150,000
25,500
175,500
3.64
150,000
15,562
165,562
4.68
150,000
5,250
155,250
8.62
X
Table VIII
Statistical Section 95
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Property Value, Construction, and Bank Deposits
Last Ten Fiscal Years
Table IX
Commercial
Residential
Propertv Value
Construction
Construction
Bank
Fiscal
Deposits
Year
Commercial
Residential
Value
Value
(000) r
1992
$ 113,189,265
$ 544,474,253
$ 822,310
$ 2,212,962
$ 7,955,346
199 3
99 562 514
568 481 487
1 076 515
1 034 129
7 727 879
,
1994
98,698,619
570,810,390
747,820
1,101,790
8,196,595
1995
93,576,663
541,319,023
307,650
18,901,801
9,055,476
1996
91,959,700
595,990,486
4,434,050
4,032,198
9,545,424
1997
92,371,112
603,600,525
3,759,496
2,194,016
9,911,930
1998
97,758,105
620,048,032
3,769,950
10,893,857
10,715,610
1999
109,456,299
625,385,715
11,698,194
5,337,681
13,283,898
2000
113,851,156
653,605,011
*
28,219,296
12,711,003
2001
122,793,250
745,237,484
*
36,600,946
12,927,182
" 1
(')Estimated
Sources: Village of North Palm Beach
Palm Beach County Property Appraiser Office
Florida Bankers Association. Data as of September 30 of the preceding year.
* Information not available.
96 Statistical Section
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Table X
Principal Taxpayers
January 1, 2001
Percentage
2001
of Total
Assessed
Assessed
Taxpayer
Valuation
Valuation
Olen Residential Realty $
16,321,086
2.11%
WCI Communities, Inc.
11,981,541
1.55%
Sanctuary Bay Trust Corporation
11,247,093
1.46%
Intervest Crystal Tree
10,199,784
1.32%
North Palm Properties Limited
9,002,699
1.17%
Greater Florida Investment Co.
5,840,000
0.76%
Transcontinental Atrium, Inc.
4,590,000
0.59%
Roschman,M.Elaine TR
4,100,000
0.53%
Pavilion Office Center
3,240,000
0.42%
Old Port Cove Dev.
3,100,000
0.40%
Morse,Edward J.,Inc. 3,025,889 0.39%
$ 82,648,092 10.70%
Source: Palm Beach County Property Appraiser.
Statistical Section 97
THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table XI
Miscellaneous Statistics
September 30, 2001
Date of incorporation:
August 13, 1956 r
Form of Government
Council -Manager
Area(land and waterways)
5.18 square miles
Miles of streets
36.00
Number of street lights
425
Population
12198 -
Fire Protection
Number of stations
1
Number of firemen and officers
5
Police/EMS Protection
Number of stations
2
Number of policemen and officers
56
Number of EMS officers
12
Building Permits
Building permits - new
75
Building permits- additions
203 `
Recreation/Culture
Number of parks
4
Public tennis courts
4
Number of marinas
1
Number of libraries
1
Number of volumes
44,686
Country Club
1
Golf course
1 1
Driving range
1 J
Swimming pool
1
Tennis courts
10
Employees
229
Source: Village of North Palm Beach
1I
�l
J !i
98 Statistical Section
I IDAI Im As 0
I -
BI
DO
-
,
,
� ' �
�^
/
'y |
!
}
�J
AW AL
HaqsAgz&Co
Certified Public Accountants
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE 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 the general purpose financial statements of the Village of North Palm Beach,Florida, as
of and for the year ended September 30, 2001, and have issued our report thereon dated January 21,2002.
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.
Compliance
As part of obtaining reasonable assurance about whether the Village of North Palm Beach,Florida's gen-
eral purpose financial statements are free of material misstatement, we performed tests of its compliance
with certain provisions of laws,regulations,contracts and grants,noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. 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 that are
required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Village of North Palm Beach, Florida's internal
control over financial reporting in order to determine our auditing procedures for the purpose of express-
ing our opinion on the general purpose financial statements and not to provide assurance on the internal
control over financial reporting. Our consideration of the internal control over financial reporting would
not necessarily disclose all matters in the internal control over financial reporting that might be material
weaknesses. A material weakness is a condition in which the design or operation of one or more of the
internal control components does not reduce to a relatively low level the risk that misstatements in
amounts that would be material in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over financial reporting and its operation that we con-
sider to be material weaknesses. However, we noted other matters involving the internal control over fi-
nancial reporting that we have reported to management of the Village of North Palm Beach, Florida in a
separate letter dated January 21,2002.
1601 Belvedere Road
Suite 200,East
West Palm Beach,FL 33406-1595
(561) 686-1551 Fax: (561)471-1210
Required Reports 101
This report is intended for the information of management and members of the Village Council and is not
intended to be and should not be used by anyone other than these specified parties.
Haas,Diaz&Co.
Certified Public Accountants
-- — January 21002---
102 Required Reports
l
i
i
Haas,D/ z€Co.
Certified Public Accountants
MANAGEMENT LETTER
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach,Florida
We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for the
year ended September 30,2001, and have issued our report thereon dated January 21, 2002.
We have issued our Independent Auditor's Report On Compliance and on Internal Control Over Financial
Reporting dated January 21, 2002. Disclosures in that report, if any, should be considered in conjunction
with this management letter.
We conducted our audit in accordance with generally accepted auditing standards, and Government Audit-
ing Standards issued by the Comptroller General of the United States. Additionally, our audit was con-
ducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern
the conduct of local governmental entity audits performed in the State of Florida and require that certain
items be addressed in this letter.
The Rules of the Auditor General (Section 10.554 (1) (g) 1. a) require that we comment as to whether or
not inaccuracies, shortages, defalcations, fraud, and violations of laws, rules, regulations, and contractual
provisions reported in the preceding annual financial audit report have been corrected. There were no
such instances disclosed in the preceding annual financial audit report.
The Rules of the Auditor General (Section 10.554 (1) (g) 1. b) require that we comment as to whether or
not recommendations made in the preceding annual financial audit report have been followed. The rec-
ommendations made in the preceding annual financial audit report have been corrected.
As required by the Rules of the Auditor General (Section 10.554 (1) (g) 6. a), the scope of our audit in-
cluded a review of the provisions of Section 218.503 (1), Florida Statutes, "Determination of Financial
Emergency." In connection with our audit,we determined that the Village of North Palm Beach,Florida is
not in a state of financial emergency as a consequence of the conditions described by Section 218.503 (1),
Florida Statutes. The scope of our audit included the use of financial condition assessment procedures to
assist in the detection of deteriorating financial conditions pursuant to section 218.39 (5),Florida Statutes.
As required by the Rules of the Auditor General (Section 10.554 (1) (g) 6. b), we determined that the an-
nual financial report for the Village of North Palm Beach,Florida for the year ended September 30, 2001,
was filed with the Department of Banking Finance pursuant to Section 218.32, Florida Statutes, and is in
agreement with the annual financial audit report for the year ended September 30, 2001.
1601 Belvedere Road
Suite 200, East
West Palm Beach,FL 33406-1595
(561) 686-1551 Fax: (561)471-1210
Required Reports 103
The Rules of the Auditor General (Section 10.554 (1) (g) 2.) require that we comment as to whether or not the
Village of North Palm Beach,Florida complied with Section 218.415, Florida Statutes, regarding the investment
of public funds. The Village has adopted a written investment policy and was in compliance with the provisions
of that policy for the year ended September 30, 2001.
The Rules of Auditor General (Sections 10.554 (1) (g) 3., 4.) require disclosure in the management letter of the
following matters if not already addressed in the auditor's report on compliance and internal control over finan-
cial reporting: recommendations to improve financial management, accounting procedures, and internal controls;
recommendations addressing deteriorating financial conditions; violations of laws,rules,regulations and contrac-
tual provisions; illegal or improper expenditures which may or may not materially affect the financial statements;
improper or inadequate accounting procedures; failures to properly record financial transactions; and other inac-
curacies, shortages,defalcations and instances of fraud discovered by the auditor. Our audit disclosed the follow-
ing matter required to be disclosed by Rules of Auditor General (Sections 10.554 (1) (g) 3.,4.).
FINDING 01-01
COUNTRY CLUB OPERATIONS
Criteria
Proprietary funds are used to account for governmental activities that are similar to activities that may be per-
formed by a commercial enterprise. The basic objective of a proprietary fund is to provide a service or product
to the public at a reasonable cost.
Condition
During the course of our audit, we utilize a variety of methods to identify the financial condition of the organiza-
tion. Financial condition, for the purpose of this comment, refers to the Village's ability to provide services at
the level and quality that its citizens desire.
We computed the following financial indicators based on data collected for the five most recent years. Where
indicated, amounts were adjusted for inflation. The price index used was the municipal cost index published by
American City and County Magazine.
IFinancial Indicator# 1
Earnings (in constant dollars)
Increase/Decrease
Financial nluwawl # 2
Cash and Investments
Current Liabilities
104 Required Reports
2001
2000
1999
1998
1997
$1,882,364
$2,104,280
$ 2,518,940
$ 2,690,161
$ 2,755,506
-10.55% -16.46% -6.36% -2.37% 11.25
$ 114,861 $ 266,731 $ 1,480,113 $ 1,061,132 $ 1,342,654
247,324 -355,220 430,355 191,666 358,938
.46:1.00 .75:1.00 3.44:1.00 5.54:1.00 3.74:1.00
J
I
Financial Indicator#3
Operating Income(Loss)
Operating Revenues
Financial Indicator#4
2001 2000 1999 1998 1997
$ (65,883) $ (338,420) $ (164,050) $ 38,392 $ 132,458
2,492,894 2,290,350 2,290,261 2,113,566 2,076,394
-2.60% -14.80% -7.20% 1.80% 6.40%1
Retained Earnings(in constant dollars) $ 1,882,364 $ 2,104,280 $ 2,518,940 $ 2,690,161 $ 2,755,506
Total Operating Revenues 2,492,894 2,290,350 2,290,261 2,113,566 2,076,349
Financial Indicator#5
et Working Capital
Increase/Decrease
76% 92% 110% 127% 133%1
$ (205,884) $ (338,666) $ 755,976 $ 801,228 $ 900,174
39% -145% -6% -I1% -
The financial indicators demonstrate a deteriorating financial condition for the country club operation. Our ob-
servations on this condition are as follows:
1. There has been a continuous decline in retained earnings for the past four years. Retained earnings is
the cumulative amount by which revenues and operating transfers from other funds have exceeded ex-
penses.
2. There has been a continuous decline in the current ratio(as measured by cash and investments to current
liabilities). This may result in a difficulty in meeting current needs.
3. Current revenues are not supporting current expenditures. There have been operating losses for the last
three years. This is occurring despite an increase in revenues between September 30, 2000 and Septem-
ber 30,2001, of approximately$206,000. This may result in a reduction of the Village's ability to with-
stand financial emergencies and the ability to fund capital purchases without having to borrow.
4. There has been a negative working capital position for the last two years. At September 30, 2001, the
Country Club's liquid assets were $176,164. The average monthly cash requirement for operations is
$229,000.
Effect
Continuing deficits may require the general fund to subsidize operations.
Recommendation
We recommend the following actions:
1. Review the revenue structure to determine stability, equity, efficiency and capacity to finance opera-
tions.
2. Develop a long-term financial plan that includes revenue and expenditure trend studies,capital,and debt
management plans.
3. Consider a flexible budget approach that would allow the Village to prepare several budgets at different
activity levels to establish an acceptable comparative basis for planned activity and actual results.
Required Reports 105
Management Response
This comment will be forwarded to the Village Council for resolution.
This report is intended solely for the information of management and members of the Village Council and is not
intended to be and should not be used by anyone other than these specified parties.
AU-4 ` -
Haas,Diaz&Co.
Certified Public Accountants
January 21, 2002
106 Required Reports