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The Village of
North Palm Beach, Florida
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2003
REVISED
The Village of
North Palm Beach Florida
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2003
Prepared by:
Finance Department
Shaukat Khan
Director of Finance
THE VH.LAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal i
List of Principal Village Officials '
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Organization Chart "
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GFOA Certificate of Achievement for Excellence in Financial Re ortin
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FINANCIAL SECTION
Report of Independent Certified Public Accountants ..............................................................................................1
Management's Discussion and Analysis .................................................................................................................3
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Assets ..................................................................................................................................10
Statement of Activities ...................................................................................................................................11
Fund Financial Statements:
Balance Sheet -Governmental Funds ............................................................................................................13
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets ...................................................................................................................14
Statement of Revenues, Expenditures and Changes in
Fund Balances -Governmental Funds ......................................................................................................15
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of the Governmental Funds to the
Statement of Activities ...............................................................................................................................16
Statement of Net Assets -Proprietary Fund ...................................................................................................17
Statement of Revenues, Expenses, and Changes in Net
Assets -Proprietary Fund ..........................................................................................................................18
Statement. of Cash Flows -Proprietary Fund .................................................................................................19
Statement of Fiduciary Net Assets -Fiduciary Funds ....................................................................................20
Statement of Changes in Fiduciary Net Assets -Fiduciary Funds .................................................................21
Notes to Basic Financial Statements ...................................................................................................................22
REQUIlZED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule -General Fund ..........................................................................................47
Schedule of Funding Progress -General Employees Retirement Fund .........................................................68
Schedule of Employer and State Contributions ..............................................................................................69
Notes to Required Supplementary Information ..............................................................................................70
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
TABLE OF CONTENTS
(Continued)
COMBINING FUND STATEMENTS
Combining Statements:
Combining Statement of Net Assets -Fiduciary Funds .................................................................................72
Combining Statement of Changes in Net Assets -Employee Retirement Funds ...........................................74
Combining Statement of Changes in Assets and Liabilities -Agency Funds ................................................75
STATISTICAL SECTION
Government-wide Information:
Table I Government-wide Expenses by Function .......................................................................................76
Table II Government-wide Revenues ...........................................................................................................78
Fund Information:
Table III General Governmental Expenditures by Function ..........................................................................80
Table IV General Governmental Revenues by Source ..................................................................................82
Table V Property Tax Levies and Collections ........................................................................................•-....84
Table VI Assessed Value of Taxable Property ..............................................................................................85
Table VII Property Tax Rates -Direct and Overlapping Governments .........................................................86
Table VIII Computation of Direct and Overlapping Bonded Debt -General
Obligation Bonds .........................................................................................................................87
Table IX Computation of Legal Debt Margin ...............................................................................................88
Table X Debt Related Statistics -Schedule of Revenue Bond Coverage -
General and Enterprise Funds .......................................................................................................89
Table XI Property Value, Construction, and Bank Deposits ........................................................................91
Table XII Principal Taxpayers ........................................................................................................................92
Table XIII Miscellaneous Statistics ..................................................................................................................93
REQUIRED REPORTS
Report of Independent Certified Public Accountants on Compliance and on
Internal Control Over Financial Reporting Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .....................................................94
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ...................................................................................................................................................95
~olsa~s ~xosanQOxs~I
TI-~ VILLAGE OF
North Palm Beach
~~~~4 Department of Finance
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Village Hall • 501 U.S. Highway 1 • NorthPalmBeach, FL 33408 • (561) 841-3360 • Fax (561) 881-7469
March 5, 2004
The Honorable Mayor and Members of the Village Council
Village of North Palm Beach
North Palm Beach, Florida
The Finance Department and Village Manager's Office are pleased to submit the Comprehensive Annual
Financial Report for the Village of North Palm Beach, Florida for the fiscal year ended September 30,
2003.
This report is published to provide the Village Council,. Village staff, our citizens, our bondholders, and
other interested parties with detailed information concerning the fmancial condition and activities of the
Village government. Responsibility for both the accuracy of the presented data and the completeness and
fairness of the presentation, including all disclosures, rests with the Village.
To the best of our knowledge and belief the enclosed data is accurate in all material respects, and is
organized in a manner designed to fairly present the financial position and results of operations of the
Village as measured by the fmancial activity of its various funds. We also believe that all disclosures
necessary to enable the reader to gain the maximum understanding of the Village's fmancial affairs have
been included.
THE REPORT
This report is presented in three sections: Introductory, Financial and Statistical. The introductory section
includes this transmittal letter, a listing of the Village Officials, and an organizational chart of the Village.
The fmancial section includes Management's Discussion and Analysis (MD&A), basic fmancial
statements, required supplementary information, and combining and individual fund statements and
schedules, as well as the independent auditor's report on the basic fmancial statements. The MD&A is a
narrative introduction, overview, and analysis to accompany the basic fmancial statements. This letter of
transmittal. is designed to complement the MD&A and should be read in conjunction with it. The Village.
of North Palm Beach's MD&A can be found immediately following the report of the independent auditors.
The statistical section includes financial and demographic information, usually presented on a multi-year
basis; that is relevant to a financial statement reader.
The financial section described above is prepared in accordance with generally accepted accounting
principles for governments as prescribed by the Governmental Accounting Standards Board (GASB) and
other professional associations, as applicable.
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VILLAGE PROFILE
The Village
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
waterfront 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-year overlapping terms. Day to day affairs of the Village are under the leadership of a Village
Manager who is appointed by the Council.
FINANCIAL DATA
Financial Reporting System and Budgetary Controls
The Village's fmancial 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 fmancial 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 fmancial and accounting system, consideration is given to the
adequacy 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 with the above framework. We believe that the Village's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of
fmancial 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, 2003.
ECONOMIC OUTLOOK
Property Values
The gross assessed property values have increased by 144 million dollars in the year 2003. We now
anticipate a substantial reduction in planned new growth in that the developable areas within the municipal
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corporate limits have been reduced with existing development, or there are no substantiated plans on
remaining land. We, therefore, can anticipate with the sale and transfer of existing properties a twenty to
thirty million dollar increase in valuations. The prior mentioned comments are intended to verbalize a
warning to the community in that a slow or stagnate local economic. development is a negative that must be
addressed.
Annexation
Last year the Village Administrative and Financial Management advised as to the completion of a study
titled "Annexation Area Study, Lost Tree, Hidden Key, and Portage Landing". Also, noted was the
statutory authority wherein the community met the 70/30% ration required in residential annexation. At the
writing of this report we must note the following: (a) an agreement exists now with the Village of North
Palm Beach and our neighbors in Palm Beach Gardens, wherein the Comprehensive Plans for both
communities are to be altered to exchange annexed properties, i.e. Pelican Car Wash located on U.S.
Highway One, and an office complex located on Prosperity Farms Road and Monet Road. The agreement
also authorizes Palm Beach Gardens to begin the annexation of Pirates Cove; and further, removes from
Palm Beach Gardens any plans to annex Lost Tree, Hidden Key, and Portage Landing. We must also note
while the entire staff aggressively recommends the annexation of the three areas prior noted, the technical
difficulties associated with this annexation will be very difficult. The annexation of any unincorporated
area must include an understanding; the annexation benefits both the incorporated. municipal government
and the landowners and residents of an unincorporated area. We must seek a methodology to inform and
gain approval from -the landowners and residents of all three neighborhoods, Lost Tree, Hidden Key and
Portage Landing. Finally without a successful annexation venture the prospects for new growth and
development are diminished.
INITIATIVE AND FUTURE PROJECTS
Country Club
The last major redevelopment and or maintenance project at the municipal golf course was accomplished in
1989. The North Palm Beach Country Club Advisory Board recognizing the reduction in play (95,000
rounds played in 1998. to 70,000 rounds played in 2003) have recommended to the Mayor and Council a
revitalization project including irrigation- upgrades, increase in tee square footage and replacement of
greens considered to having exceeded the life expectancy of usefulness. Based upon the full amortization
of the debt incurred in 1989 there will be funds available ($85,000 per year) to provide the Village with an
opportunity to secure new capital debt in an amount not to exceed 1.5 million dollars.
Northlake Boulevard Corridor Task Force
The Mayor and Village Council have recently approved the construction of Phase I for the Streetscape
authorizing the construction work of nearly $650,000. It is interesting to note the commitment of the
Village in this project and it is particularly interesting because our neighboring community Lake Park has
withdrawn from the Task Force. This event has not deterred the Mayor and Council but renewed the
aggressive commitment to the street upgrade.
Public Safety North Substation Annex
This project has received the highest priority from the Mayor and Council for fiscal year 2004-2005. The
North Substation Committee has formalized and recommended to the Mayor and Council property
adjoining a public way and the Benjamin School. The Village will make an attempt to amicably close the
public way and begin the process of consultant and architect retention. The committee will also
recommend to the Mayor and Council; if in fact a amicable agreement can not be reached with private
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landowners the process of eminent domain should be undertaken. The Committee believes this project and
the area noted will facilitate the Village's much needed annexation of Lost Tree, Hidden Key, and Portage
Landing.
Promenade Shoppe's of Northlake
The Promenade Shoppe's of Northlake continue to progress in a very positive fashion. The latest addition
is a Wendy's Hamburger restaurant located on one of the Northlake Boulevard out parcels. Carl Sabatello
of Sabatello Construction Company is redeveloping the old Builders Square and Hyde Park grocery store.
The Sabatello redevelopment project will be a major improvement to the Old Twin City Mall property. As
of this writing, there has been no revealing as to what tenants will be using the new property for.
Prosperity Farms Road Task Force
The Prosperity Farms Road Task Force was comprised of citizens that reside on or near Prosperity Farms
Road. The citizens were appointed by the Village Council for the purpose of developing a plan in an
attempt to resolve some of the. traffic problems affecting. the residents that live along Prosperity Farms
Road. An engineering firm was hired to develop a concept plan. From that concept plan the Council has
started the process of selecting an engineering firm to do the construction and design phase to implement
the concept plan. Palm Beach County is providing the funding for the construction and design phase. The
anticipated cost is approximately $1,000,000 with the actual contract anticipated to come in below that
number. Once the construction and design phase is completed the Village Council will then make a
decision as to whether to continue with the project or not. Should the Council opt to continue with the
project, they will have numerous options in which to decide what level of implementation they want to
carry out. The construction and design product should carry with it various. options along with the cost
appropriate to each option in which the Council can make a decision.
Canal Dredging
One of the noted development signatures of the Village is its intricate network of canals and waterways.
The canals and waterways enhance the property values of the Village and give it character as a boating
community. The canals were built in the 1950's as part of the original development of North Palm Beach.
However, the canals have not been maintained by the Village in that length of time. And as a result, have
silted up and created navigational problems for boaters. In order to alleviate this problem, the Village has
been going through an extensive dredging program to upgrade the quality of the canals and the North Palm
Beach waterways. The dredging program has been described as a three-phase program with the first phase
being completed; the contractor will be initiating the phase II during Fiscal Year 2002-2003. Phase I was
primarily the portions of the North Palm Beach Waterway and canals feeding off of the waterways. Phase
II is targeted toward the canals that feed off of the north end of Lake Worth, east of U.S. Highway 1. Phase
III is anticipated as being a mitigation project for an area that has been identified as environmentally
sensitive and will require an offsetting mitigation program that involves underwater sea grasses.
OTHER INFORMATION
Independent Audit
Article 11, Section 2.18 of the Village Charter requires an annual audit of the books of account, financial
records, and transactions of all administrative departments of the Village by independent certified public
accountants selected by the Village Council. This requirement has been complied with, and the
independent auditor's report has been included in this report.
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Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement of Excellence in Financial Reporting to the Village of North Palm Beach for its
Comprehensive Annual Financial Report for the fiscal year ended September 30, 2002. The Certificate of
Achievement is a prestigious national award, recognizing conformance with the highest standards for
preparation of state and local government financial reports.
Dennis R. Redmond
Village Manager
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Shaukat Khan
Finance Director
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THE VILLAGE OF NORTH PALM BEACH, FLORIDA
PRINCIl'AL VILLAGE OFFICIALS
SEPTEMBER 30, 2003
TITLE NAME
Mayor David B. Morris
Vice Mayor Charles R. O'Meilia
President Pro Tem Joseph A. Tringali
Council Member Edward M. Eissey
Council Member Donald G. Noel
Village Manager Dennis D. Redmond
Director of Finance Shaukat Khan, CPA
Village Clerk Kathleen F. Kelly
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THE VILLAGE OF NORTH PALM BEACH, FLORI®A
Organization Chart
September 30, 2003
The Residents
.VILLAGE BOARDS
•COUNTRY CLUB ADVISORY
•CODE ENFORCEMENT
Village , •LIBRARY ADVISORY
Council •RECREATION ADVISORY
•PLANNING COMMISSION
•BOARD OF ADJUSTMENT
•CONTRACTORS
•PENSION
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Village Village Village
Attorney Manager Clerk
Finance Public Public Recreation Library Count Club
Services Safety ry
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of North Palm Beach,
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2002
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.
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Executive Director
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• ~ Rachlin Cohen & Holtz uP
~ • Phillips Point East Tower ¦ 777 South Flagler Drive ¦ Suite 150 ¦ West Palm Beach, Florida 33401
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Phone 561.833.0002 ¦ Fax 561.833.3235 ¦ www.rchcpa.com
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Village of North Palm Beach,
Florida, (the Village) as of and for the year ended September 30, 2003, which collectively comprise the
Village's basic fmancial statements as listed in the table of contents. These financial statements are the
responsibility of the Village of North Palrri Beach's management. Our responsibility is to express. opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States 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 financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement. presentation. We believe that our audit provides a reasonable
basis for our opinions.
In our opinion, the fmancial statements referred to above present fairly, in all material respects, the respective
fmancial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the Village of North Palm Beach, Florida, as of September 30, 2003, and the
respective changes in financial position and cash flows, where applicable, thereof for the year then ended in
conformity with accounting principles generally accepted in the United States.
In accordance with Government Auditing Standards, we have also issued a report dated January 13, 2004, on our
consideration of the Village of North Palm Beach's internal control over fmancial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and agreements. 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.
Management's Discussion and Analysis, pages 3 through 9, and the budgetary comparison schedules and
schedules of funding progress and employer contributions, pages 47 through 69, are not required parts of the
basic financial statements but are supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the fmancial statements that collectively
comprise the Village of North Palm Beach's basic financial statements. The introductory section, other
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MIAMI ¦ FORT LAUDERDALE ¦ WEST PALM BEACH ¦ STUART
A~~ Lzdepe~ule~at Member of Balzer Tilly L2tei izatao~aal
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The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Page Two
supplementary information, and the statistical tables are presented for purposes of additional analysis and are not
required parts of the basic financial statements. The information included in the introductory and statistical
sections has not been subjected to auditing procedures applied in the audit of the basic fmancial statements and,
accordingly, we express no opinion on them. The other supplementary information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is presented fairly,
in all material respects, in relation to the basic fmancial statements taken as a whole.
West Palm Beach, Florida
January 13, 2004
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Village of North Palm Beach, Florida (Village), we offer readers of the Village's
financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal
year ended September 30, 2003. Please read it in conjunction with the accompanying transmittal letter
beginning on page i, and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
• The Village's total net assets at September 30, 2003 were $8.6 million. Of this amount, $1.9 million
(unrestricted net assets) may be used to meet the Village's ongoing obligations to citizens and creditors.
• Governmental net assets were $6.5 million.
• The total revenues from all sources were $14.8 million.
• The total cost of all Village programs was $15.8 million.
• During the year, the Village's governmental activity expenses exceeded general revenues by $.88 million.
• Total expenditures in the General Fund exceeded total revenue by $1.4 million, including other financing
sources and uses.
• At the end of the current fiscal year, unreserved fund balance for the general fund was $1.7 million, or
11.8% of total general fund expenditures.
• The Country Club's net assets decreased by $53,000.
• The Village's total debt decreased by $615 thousand during the current fiscal year.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the fmancial statements
are: (1) Government-wide financial statements which include the Statement of Net Assets and the Statement of
Activities. These statements provide information about the activities of the Village as a whole. (2) Fund
financial statements tell how these services were financed in the short term, as well as what remains for future
spending. Fund financial statements also report the Village's operations in more detail than the government-
wide statements by providing information about the Village's most significant funds. (3) Notes to the financial
statements.
REPORTING THE VILLAGE AS A WHOLE
Statement of Net Assets and the Statement of Activities (Government-wide)
A frequently asked question regarding the Village's fmancial health is whether the year's activities contributed
positively to the overall financial well being. The Statement of Net Assets and the Statement of Activities report
information about the Village as a whole and about its activities in a way that helps answer this question. These
statements include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting used by most private-sector companies. All of the current year's revenues and expenses are taken
into account, regardless of when cash is received or paid.
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These two statements report the Village's net assets and changes therein. Net assets, the difference between
assets and liabilities, are one way to measure the Village's financial health, or financial position. Over time, f
increases or decreases in net assets are an indicator of whether the financial health is improving or deteriorating.
The Statement of Net Assets and the Statement of Activities present information about the following:
Governmental activities -All of the Village's basic services are considered to be overnmental
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activities, including general government, community development, public safety, public services, library,
and recreation. Property taxes, sales taxes, utility taxes, and franchise fees finance most of these
activities.
• Proprietary activities/Business type activities -The Village charges a fee to customers to cover all or
most of the cost of the services provided. 'The Village's Country Club is reported in this category.
REPORTING THE VILLAGE'S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds -not the Village as
a whole. Some funds are required to be established by State law. However, management establishes other
funds, which aid in the management of money for particular purposes or meet legal responsibilities associated
with the usage of certain taxes, grants, and other money. The Village's three kinds of funds, governmental,
proprietary, and fiduciary use different accounting approaches as explained below.
• Governmental funds -Most of the Village's basic services are reported in governmental funds.
Governmental funds focus on how resources flow in and out, with the balances remaining at year-end
that are available for spending. These funds are reported using an accounting method called the modified
accrual accounting method, which measures cash and all other financial assets that can readily be `
converted to cash. The governmental fund statements provide a detailed short-term view of the Village's
general government operations and the basic services it provides. Governmental fund information shows
whether there are more or fewer financial resources that can be spent in the near future to finance the
Village's programs. The basic governmental fund financial statements can be found on pages 13-16 of
this report. ~
• Proprietary funds -The Village's only proprietary fund is the Country Club fund, which charges 4
customers for the services it provides. These services are generally reported in proprietary funds.
Proprietary funds are reported in the same way that all activities are reported in the Statement of Net
Assets and the Statement of Activities. The basic proprietary fund. financial statements can be found on
pages 17-19 of this report.
• Fiduciary funds -Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because
the resources of those funds are not available to support the Village's own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial
statements can be found on pages 20-21 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the
case of the Village, assets exceeded liabilities by $$.6 million at the close of the most recent fiscal year. v~
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By far, the largest portion of the Village's net assets (66%) reflects its investment in capital assets (e.g., land,
buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding.
The Village uses these capital assets to provide services to citizens; consequently, these assets are not available
for future spending. Although the Village's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the
capital assets themselves cannot be used to liquidate these liabilities.
Village of North Palm Beach
Net Assets
(In Thousands)
Governmental Business Total
Activities Activities Activities
2003 2002 2003 2002 2003 2002
Assets:
Current and other assets $ 4,076 $ 6,554 $ 202 $ 250 $ 4,278 $ 6,804
Capital assets 11,800 10,352 2,679 2,802 14,479 13,154
Total assets $ 15,876 $ 16,906 $ 2,881 $ 3,052 $ 18,757 $ 19,958
Liabilities:
Long-term debt outstanding $ 6,905 $ 7,826 $ 457 $ 510 $ 2,768 $ 8,336
Other liabilities 2,444 1,678 324 390 7,362 2,068
Total liabilities $ 9,349 $ 9,504 $ 781 $ 900 $ 10,130 $ 10,404
Net Assets:
Invested in capital assets, net of debt $ 3,563 $ 2,247 $ 2,166 $ 2,151 $ 5,729 $ 4,398
Restricted 614 2,058 - - 614 2,058
Unrestricted 2,350 3,097 (66) 1 2,284 3,098
Total net assets $ 6,527 $ 7,402 $ 2,100 $ 2,152 $ 8,627 $ 9,554
An additional portion of the Village's net assets (7%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets ($1.9 million) may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the fiscal year, the Village is able to report positive balances in all three categories of net assets,
both for the government as a whole, as well as for its separate governmental and business-type activities.
There was a decrease of $.93 million in the government's net assets during the current fiscal year.
Governmental activities accounted for 94% of the total decrease.
Governmental Activities
Governmental activities decreased the Village's net assets by $.88 million, thereby accounting for 94% of the
total decrease in the net assets of the Village. Key elements of this decrease are as follows:
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Village of North Palm Beach r
Changes in Net Assets 1
(In Thousands) r
Governmental Business Total
Activities Activities Activities
2003 2002 2003 2002 2003 2002
Revenues:
Program revenues:
Charges for services $ 1,503 $ 1,128 $ 2,510 $ 2,447 $ 4,013 $ 3,575
.Operating grants and contributions 82 94 - - 82 94
Capital grants and contributions 103 93 10 - 113 93
General revenues:
Property taxes 6,365 5,369 - - 6,365 5,369
Utility service taxes 1,755 1,716 - - 1,755 1,716 r
Sales and use taxes 1,148 1,123 - - 1,148 1,123
Franchise fees 890 846 - - 890 846
Occupational licenses - 245 - - - 245
Grants and contributions not restricted
to specific programs 277 - - - 277 -
Investment earnings 75 140 5 5 80 145
Miscellaneous 55 396 100 124 155 520
Loss on disposal of assets - (151) - (27) - (178)
Total revenues 12,253 10,999 2,625 2,549 14,878 13,548
Expenses:
Program expenses:
General government 2,781 1,171 - - 2,781 1,171
Public safety 5,195 5,179 - - 5,195 5,179
Public services 3,483 4,241 - - 3,483 4,241
Leisure services 1,540 1,464 - - 1,540 1,464 ` l
Interest on long-term debt 129 173 - - 129 173 l
Country Club - - 2,677 2,602 2,677 2,602 i~
Total expenses 13,128 12,228 2,677 2,602 15,805 14,830
Decrease in net assets (875) (1,229) (52) (53) (927) (1,282) ° ~ -~
Net assets -October 1, 2002 7,402 8,631 2,152 2,205 9,554 10,836
Net assets -September 30, 2003 $ 6,527 $ 7,402 $ 2,100 $ 2,152 $ 8,627 $ 9,554
-~
The Village's programs include General Government, Public Safety, Public Services, and Leisure Services. ,
Each program's net cost (total cost, less revenues generated by the activities) is presented below. The net cost l
shows the extent to which the Village's general taxes support each of the Village's programs.
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Village of North Palm Beach
Governmental Activities
(In Thousands)
2003 2002
Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $ 2,781 $ (2,438) $ 1,171 $ (1,166)
Public safety 5,195 (4,854) 5,179 (4,787)
Public services 3,483 (2,721) 4,241 (3,498)
Leisure services 1,540 (1,298) 1,464 (1,289)
Interest on long-term debt 129 (129) 173 (173)
$ 13,128 $ (11,440) $ 12,228 $ (10,913)
The cost of all governmental activities this year was $13.1 million. As shown on the Statement of Activities,
$1.7 million of this cost was paid for by those who directly benefited from the programs, and $10.6 million was
financed through general revenues. The Village used $875,000 of the budgeted $2.3 million appropriated fund
balance to finance the remainder of the expenses.
Business Type Activities
. _ Net assets of the Proprietary Fund (Country Club) at September 30, 2003, were $2.1 million. The cost of
providing all Proprietary (Business Type) activities this year was $2.7 million. As shown in the Statement of
Activities, amounts paid by members and non-members of the Country Club were $2.51 million, leaving a
deficit of $157,000. Investment and miscellaneous income of $105,000 was used to fund the deficit. Net assets
decreased by $52,000.
FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds -The focus of the Village's governmental funds is to provide information on near-term
inflows, outflows,. and balances of spendable resources. Such information is useful in assessing the Village's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Village's general fund reported an ending fund balance of $2.0
million, a decrease of $1.4 million in comparison with the prior year. This was a planned event, since the
Village had budgeted to utilize $2.3 million of general fund balance in the current year to support budgeted
expenditures.
Approximately 63% of the combined ending fund balances ($1.7 million) constitutes unreserved fund balance,
which is available for spending at the government's discretion. The remainder of fund balance is reserved to
indicate that it is not available for new spending because it has already been committed 1) to liquidate contracts
and purchase orders of the prior period ($103,000), and 2) for a variety of other restricted purposes ($865,000).
The general fund is the chief operating fund of the Village. At the end of the current fiscal year, unreserved
fund balance of the general fund was $1.7 million, while total fund balance was $2 million. As a measure of the
general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to
total fund expenditures. Unreserved fund balance 12% of total general fund expenditures, while total fund
7
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balance represents 14% of that same amount.
The capital projects fund has a total fund balance of. $.61 million, all of which is reserved for capital outlay l
projects. The net decrease in fund balance during the current year in the capital projects fund was $1.5 million, r I ~
and is the result of expenditures for capital outlay ($1.5 million) that were greater than revenues and transfers in
from the general fund ($23,100). ~ ~ ~
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were relatively minor ($320,189) and can
be briefly summarized as follows: ~
• Increases in salaries and related expenditures. ~
• Increases in health care costs.
~II
CAPITAL ASSET AND DEBT ADIVIINISTRATION -
Capital Assets -
The capital assets of the Village are those assets that are used in the performance of Village functions. Capital J
assets include equipment, buildings, land, and park facilities etc. The Village has elected to retroactively apply
the capitalization requirements of GASB Statement No 34 to major general infrastructure assets acquired in ` l
fiscal years ending after June 30, 1980, or that were significantly reconstructed or improved during that multi- 1
year period.
The Village's investment in capital assets for its governmental and business-type activities as of September 30,
2003 and 2002, amounts to $14.5 million and $13.2 million (net of accumulated depreciation). The total
increase in the Village's investment in capital assets for the current fiscal year was $1.3 million. Major capital
asset events during the current fiscal year included the following:
• Construction was completed on the renovation of Village Hall
Village of North Palm Beach
Capital Assets
(ln Thousands) `
Governmental Business
.Activities Activities Total
2003 2002 2003 2002 2003 2002
Land $ 2,056 $ 2,056 $ 1,051 $ 1,051 $ 3,107 $ 3,107
Construction in progress - 591 - - - 591
Buildings and improvements 10,472 8,595 1,475 1,462 11,947 10,057
Improvements other than buildings - - 574 574 574 574
Improvements -golf course - - 1,604 1,604 1,604 1,604
Furniture, fixtures and equipment 5,893 4,799 703 670 6,596 5,469
Total assets 18,421 16,041 5,407 5,361 23,828 21,402
Less accumulated depreciation 6,621 5,689 2,729 2,558 9,350 8,247
Total $ 11,800 $ 10,352 $ 2,678 $ 2,803 $ 14,478 $ 13,155 ~-~
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Additional information on the Village's. capital assets can be found in Note 4 on page 34 of this report.
Debt
Currently the Village uses debt financing on an as needed basis each year. At the end of the current fiscal year,
the Village had total debt of $1.5 million. None of this amount comprises debt backed by the full faith and
credit of the government. Of the $7.1 million of loans payable, $55;000 is unsecured. The remaining loans
payable are secured by franchise fees and public services taxes. The capital leases are secured by equipment.
Village of North Palm Beach
Outstanding Debt
(In Thousands)
Governmental Business
Activities Activities Total
2003 2002 2003 2002 2003 2002
Loans payable $ 6,950 $ 7,335 $ 513 $ 651 $ 7,463 $ 7,986
Capital leases 588 737 - - 588 737
Total $ 7,538 $ 8,072 $ 513 $ 651 $ 8,051 $ 8,723
Additional information on the Village's debt can be found in Note 5 on page 35 of this report.
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
During the current fiscal year, unreserved fund balance in the general fund decreased to $1.7 million. The
Village has not appropriated any unreserved fund balance for spending in the 2003 fiscal year budget to
maintain the comfortable and healthy financial position.
In considering the Village's budget for fiscal year 2002-2003, the Village Council- and management were
cautious as to the growth of revenues and expenditures. Investment income decreased by 30% and court fine
revenues decreased by 45% from last fiscal year; however, the building permit fees have increased by 6% this
year but will take a down turn due to the near completion of new development.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a
general overview of the Village's finances and to show the Village's accountability for the money it receives.
If you have questions about this report or need additional financial information, contact the Village's Finance
Department, at the Village of North Palm Beach, 501 U.S. Highway 1, North Palm Beach, Florida 33408.
9
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THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Assets
September 30, 2003
Governmental Business-type
Activities Activities Total
Assets:
Cash and cash equivalents $ 2,996,210 $ 128,924 $ 3,125,134
Receivables (net) 506,432 40,482 546,914
Inventories 20,233 32,606 52,839
Other assets 2,584 - 2,584
Restricted assets:
Cash and cash equivalents 184,994 - 184,994
Net pension asset 365,557 - 365,557
Capital assets:
Nondepreciable 2,055,889 1,051,311 3,107,200
Depreciable:
Buildings and improvements 10,472,157 1,475,421 11,947,578
Improvements other than buildings - 574,318 574,318
Improvements -golf course - 1,603,940 1,603,940
Furniture, fixtures and equipment 5,892,563 702,658 6,595,221
Less: accumulated depreciation (6,620,930) (2,728,647) (9,349,577)
Total assets $ 15,875,689 $ 2,881,013 $ 18,756,702
Liabilities:
Accounts payable and other current liabilities $ 1,079,000 $ 180,017 $ 1,259,017
Accrued interest payable 24,204 - 24,204
Other liabilities 9,005 7,000 16,005
Noncurrent liabilities:
Due within one year 1,331,226 137,482 1,468,708
Due in more than one year 6,905,311 456,922 7,362,233
Total liabilities $ 9,348,746 $ 781,421 $ 10,130,167
Net Assets:
Invested in capital assets (net of related debt) $ 3,563,142 $ 2,165,529 $ 5,728,671
Net pension asset 365,557 - 365,557
Restricted for:
Capital projects 613,459 - 613,459
Unrestricted 1,984,785 (65,937) 1,918,848
Total net assets $ 6,526,943 $ 2,099,592 $ 8,626,535
See accompanying notes to basic financial statements.
10
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Tl~ PILLAGE of IiToRTH IyAL1o~ BEACH. FL®RIDA 'f
Statement of
Activities
Year Ended September 30, 2003
Program Revenues '-
Operating Capital
.Charges for Grants and Grants and ~
Functions/Programs Expenses Services Contributions Contributions
Governmental activities
General government $ 2,781,333 $ 342;936 $ - $ -
Public safety 5,195,338 258,723 82,134 r
Public services 3,482,975 727,016 - 34,937
Leisure services 1,539,771 174,589 - 67,623
Interest on long term debt 128,507 - - - ~ j
Total governmental activities 13,127,924 .1,503,264 82,134 102,560 J
Business-type activities `
Country Club 2,676,883 2,510,258 - 10,000
Total business-type activities 2,676,883 2,510,258 - 10,000
Total government $ 15,804,807 $ 4,013,522 $ 82,134 $ 112,560 ` 1
General revenues: 1
Taxes:
Property taxes
Utility service taxes
Sales and use taxes
Franchise fees
Grants and contributions not restricted to specific programs
Investment earnings
Miscellaneous. 1
Total general revenues 1
Change in net assets `
Net assets, beginning of year
Net assets, end of year
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See accompanying notes to basic financial statements.
11
Governmental Business-type
Activities Activities Total
$ (2,438,397) $ - $ (2,438,397)
(4,854,481). - (4,854,481)
(2,721,022) - (2,721,022)
(1,297,559) - (1,297,559)
(128,so7) - (12sso7)
(11,439,966) - (11,439,966)
- (156,625) (156,625)
- (156,625) (156,625)
(11,439,966) (156,625) (11,596,591)
6,365,000 - 6,365,000
1,755,153 - 1,755,153
1,148,210 - 1,148,210
890,285 - 890,285
276,302 - 276,302
75,023 4,586 79,609
54,875 99,553 154,428
10,564,848 104,139 10,668,987
(875,118) _ (52,486) (927,604)
7,402,061 2,152,078 9,554,139
$ 6,526,943 $ 2,099,592 $ 8,626,535
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'I'>~ Vu,LAGE of l~o1tTH PALIV>< BEACH, ~LO1tIDA
Balance Sheet
Governmental Funds
September 30, 2003
I
Total
Capital Governmental ~ i
General Projects Funds J
Assets
Cash and cash equivalents $ 2,117,448 $ 878,762 $ 2,996,210 r,
Receivables:
State shared revenues 167,625 - 167,625
Franchise fees and utility taxes 230,143 - 230,143
Accounts 106,639 - 106,639
Special assessments 2,025 - 2,025
Inventories 20,233 - 20,233 ( 1
Restricted cash 184,994 - 184,994 1
Other assets 2,584 - 2,584
Total assets $ 2,831,691 $ 878,762 $ 3,710,453 ` 1
Liabilities and Fund Balances 1
Liabilities: `
Accounts payable and other liabilities $ 813,697 $ 265,303 $ 1,079,000
Other liabilities 9,005 - 9,005
Total liabilities 822,702 265,303 1,088,005
Fund balances:
Reserved:
Reserved for inventories 20,233 - 20,233
Reserved for prepaid items and deposits 2,584 - 2,584
Reserved for restricted assets 184,994 - 184,994
Reserved for encumbrances 102,659 - 102,659
Reserved for capital outlay 43,926 613,459 657,385
Unreserved 1,654,593 - 1,654,593
Total fund balances 2,008,989 613,459 2,622,448 ~ J
Total liabilities and fund balances $ 2,831,691 $ 878,762 $ 3,710,453 I
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See accompanying notes to basic financial statements.
13
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets
September 30, 2003
Total governmental fund balances (page 13) $ 2,622,448
Amounts reported for governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental
funds:
Cost of assets $ 18,420,609
Accumulated depreciation (6,620,930)
11,799,679
Net pension assets related to defined benefit pension plans are
recorded in the statement of net assets. Because they do not
represent available, spendable resources, they are not reported
in governmental funds. 365,557
Long-term liabilities, including notes and bonds payable, are
not due and payable in the current period and therefore are not
reported in the funds. Long term liabilities at year-end consist
of:
Capital leases (587,792)
Notes payable (6,949,932)
Accrued interest on long-term debt (24,204)
Compensated absences (698,813)
(8,260,741)
Total net assets (page 10) $ 6,526,943
See accompanying notes to basic financial statements.
14
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Tl~ Va.LaGE of l~oRT~ P~L1vi BEACH. FLOR~~ r
Statement of
Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Year Ended September 30, 2003
Total
Capital Governmental r
General Projects Funds _ a
Revenues:
Taxes $ 9,292,822 $ - $ 9,292,822
Licenses and permits 686,548 - 686,548
Intergovernmental 1,280,228 - 1,280,228
Charges for services 665,496 - 665,496 r
Fines and forfeitures 113,391 - 113,391
Interest 54,554 20,469 75,023
Miscellaneous 138,945 409 139,354 r
Total revenues 12,231,984 20,878 12,252,862
Expenditures:
Current:
General government 1,360,072 - 1,360,072 ~
Public safety 4,758,982 - 4,758,982
Public services 3,285,603 - 3,285,603
Leisure services 1,216,156 - 1,216,156
Other 1,298,492 - 1,298,492
Capital outlay 1,054,207 1,488,612 2,542,819
Debt service:
Principal .939,396 - 939,396
Interest and fiscal charges 136,676 - 136,676 l
Total expenditures 14,049,584 1,488,612 15,538,196 ~ J
Deficiency of revenues under expenditures (1,817,600) (1,467,734) (3,285,334)
Other financing sources (uses): `-
Proceeds from debt issuance 403,000 - 403,000
Miscellaneous (56) - (56) `
Transfers in (out) (23,100) 23,100 -
Total other financing sources (uses) 379,844 23,100 402,944
Net change in fund balances (1,437,756) (1,444,634) (2,882,390)
Fund balances, beginning of year 3,446,745 2,058,093 5,504,838
Fund balances, end of year $ 2,008,989 $ 613,459 $ 2,622,448 1
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See accompanying notes to basic financial statements.
15
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities
Year Ended September 30, 2003
Net change in fund balances -total governmental funds (page 15) $ (2,882,390)
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, the cost of capital assets is allocated over
their estimated useful lives and reported as depreciation expense:
Expenditures for capital assets $ 2,487,467
Less: current year depreciation (1,029,662)
1,457,805
The loss on disposal of capital assets is reported in the statement of
activities, whereas governmental funds report proceeds from the
disposal:
Capital assets disposed, net of accumulated depreciation (11,827)
Repayment of debt principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the statement
of net assets:
Decrease in accrued interest payable 8,.169
Principal payments on debt 939,396
947,565
Proceeds from debt issuance are reported as other financing sources and
uses in governmental funds. However, these transactions are not
reported in the statement of activities. Instead, they are recognized in
the statement of net assets as changes to liabilities:
Proceeds from debt issuance (403,000)
Some expenses reported in the statement of activities do not require the
use of current financial resources and therefore are not reported as
expenditures in governmental funds:
Change in net pension assets of defined benefit pension plans 61,691
Change in long-term. compensated absences (44,962)
16,729
Change in net assets (page 12) $ (875,118)
See accompanying notes to basic financial statements.
16
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T~ iTa,LAG>~ of l~ToRTg PALL ~EAC~I. ~LOItIDA r
Statement of Net Assets
Proprietary Fund
September 30, 2003
Country Club
Assets
Current assets:
Cash and cash equivalents $ 128 924
Accounts receivable 40,482
Inventories 32,606
Total current assets 202,012
Capital assets: r,
Land, buildings and equipment -net 2,679,001
Total assets $ 2,881,013
Liabilities
Current liabilities:
Accounts payable and other liabilities $ 180 017
Compensated absences payable 38000
Deposits- 7 000
Loans payable -current portion 99482 `
Total current liabilities 324,499
Noncurrent liabilities: ` j
Compensated absences payable 42 932 J
Loans payable 413 990
Total liabilities
$ 781,421 ~ l 'i,
Net Assets ` J
Invested in capital assets, net of related debt $ 2,165,529
Unrestricted (65,937)
Total net assets $ 2,099,592
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See accompanying notes to basic financial statements.
17
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Fund
Year Ended September 30, 2003
Country Club
Operating revenues:
Charges for services $ 2,510,258
Miscellaneous 111,251
Total operating revenues 2,621,509
Operating expenses:
Sports activities 1,719,828
Clubhouse 222,844
Administrative and general 483,541
Depreciation 227,442
Total operating expenses 2,653,655
Loss from operations (32,146)
Nonoperating revenues (expenses):
Intergovernmental 10,000
Interest income 4,586
Interest expense (23,228)
Loss on disposal of capital assets (11,698)
Total nonoperating revenues (expenses) (20,340)
Change in net assets (52,486)
Net assets, beginning of year 2,152,078
Net assets, end of year $ 2,099,592
See accompanying notes to basic financial statements.
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T>~ VILLAGE of 1\ToRT~ Pai„lvl ~EACHa FL®R~~ r
Statement of Cash Flows
Proprietary Fund
Year Ended September 30, 2003
Country Club
Cash flows from operating activities: r
Cash received from customers $2,507,433
Cash payments to suppliers for goods and services (1,091,594)
Cash payments to employees for services (1,292,385) r
Other operating cash receipts 111,251
Net cash provided by operating activities 234,705
Cash flows from noncapital financing activities: r 1
Intergovernmental grant 10,000
Cash flows from capital and related financing activities:
Principal repayments (137,586)
Interest paid on debt (23,228)
Acquisition of capital assets (115,573) r
Net cash used in capital and related financing activities (276,387)
Cash flows from investing activities: ` j
Interest on investments 4,586 l
Net decrease in cash and cash equivalents (27,096)
Cash and cash equivalents, beginning of year 156,020
Cash and cash equivalents, end of year $ 128,924
Reconciliation of loss from operations to net cash provided
by operating activities:
Operating loss $ (32,146)
Adjustments to reconcile loss from operations to net
cash provided by operating activities: `
Depreciation expense 227,442
Increase in accounts receivable 21,861
Decrease in inventories (816)
Increase in accounts payable 29,227
Decrease in deferred revenue (24,686) `-
Increase in compensated absences 13,823
Total adjustments 266,851
Net cash provided by operating activities $ 234,705
Noncash capital and financing activities: l
Book value of assets disposed $ 68,900 ~J
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See accompanying notes to basic financial statements.
19
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THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Statement of Fiduciary Net Assets
Fiduciary Funds
September 30, 2003
Employee
Retirement Agency
Funds Funds
Assets
Cash and cash equivalents $ 1,156,116 $ 246,153
Investments:
Common stock 7,178,428 -
U.S. Government securities 2,163,264 -
Corporatebonds 2,972,823 -
Interest receivable 28,232 -
Total assets $ 13,498,863 $ 246,153
Liabilities
Accounts payable and other liabilities $ 8,802 $ 246,153
Total liabilities $ 8,802 $ 246,153
Net Assets
Held in trust for pension benefits $ 13,490,061 $ -
Total net assets $ 13,490,061 $ -
See accompanying notes to basic financial statements.
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T>~ V~.~AGE of loto>aT~ PA~,lv>~ ~EACge FLOIZ~A r
Statement of Changes in Fiduciary Net Assets
Employee Retirement Funds
Year Ended September 30, 2003
Employee
letirement
li unds
Additions:
Contributions:
Employer $ 738,559 r
State of Florida - 159,943
Plan members 148,688
Total contributions 1,047,190
Investment income:
Interest 175,593 r
Dividends 51,800
Net appreciation in fair value of investments 1,330,521
Investment expense (72,220)
Total investment income 1,485,694
Total additions 2,532,884
Deductions: r
Administration 66,164
Benefits 224,041 I'
Total deductions 290,205
Net increase 2,242,679
Net assets held in trust for pension benefits,
beginning of year 11,247,382
Net assets held in trust for pension
benefits, end of year $ 13,490,061
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See accompanying note to basic financial statements.
21
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Financial Reporting Entity
The Village of North Palm Beach, Florida ("the Village") was incorporated in 1956 pursuant to
Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the
northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately
1,900 acres of land and 1,200 acres of lakes, canals and lagoons. The Village's nonseasonal
population consists of approximately 12,000 residents which increases during the winter months
to approximately 18,000 people. The Village operates under the Council-Manager form of
government and provides the following services to its residents: public safety, planning and
zoning, sanitation, library, parks, marinas, and a country club. The Village Council (the
"Council") is responsible for legislative and fiscal control of the Village.
As required by generally accepted accounting principles, the basic financial statements present
the government and its component units. Component units are legally separate entities for
which the primary government is considered to be financially accountable and for which the
nature and significance of their relationship with the primary government are such that
exclusion would cause the Village's combined financial statements to be misleading or
incomplete. The primary government is considered financially accountable if it appoints a
voting 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. Blended component units, although legally separate entities, are, in substance,
part of the primary government's operations and are included as part of the primary
government.
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. Further, the Village is not aware of any entity that would
consider the Village to be a component unit.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of the non-fiduciary activities of the Village. For the most
part, the effect of interfiznd activities has been removed from these statements. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges
for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment, and 2) grants and contributions that are
22
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THE VILLAGE OF NORTH PALM BEACH, FL®RIDA
NOTES TO BASIC FINANCIAL STATEMENTS r
(Continued) {
NOTE to SiTNIlYIA_RY OF SIGNIFT_CANT ACCOUNTITTG POI,ICT~S (Continued)
Government-Wide and Fund Financial Statements (Continued)
restricted to meeting the operational or capital requirements of a particular function o_r segment.
Taxes and other items not properly included among program revenues are reported instead as
general revenues.
Separate fmancial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and the major individual enterprise fund are
reported as separate columns in the fund fmancial statements.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements and proprietary fund fmancial statements are
reported using the accrual basis of accounting and the economic resources measurement focus.
Fiduciary funds use the accrual basis of accounting and, except for agency funds, the economic
resources measurement focus. Agency funds do not have a measurement focus. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which - )
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility 1
requirements imposed by the provider have been met.
Governmental fund fmancial statements are reported using the current financial resources ` 1 ~
measurement focus and the modified accrual basis of accounting. Revenues are recognized as 1
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Village considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period
are all considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period. All other revenue items are considered to be measurable and available
only when cash is received by the Village.
The Village reports the following major governmental funds:
General Fund `-~
The general fund is the primary operating fund and is used to account for all financial
resources applicable to the general operations of the Village except those required to be
accounted for in another fund.
23
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Measurement Focus, Basis of Accounting and Financial Statement Presentation
(Continued)
Capital Projects Fund
The capital projects fund is used to account for the cost of acquiring, constructing, and
placing into service those capital improvements which are associated with activities in the
General Fund and are financed by long-term debt issues which are repaid by the recurring
operating revenues in the General Fund.
The Village reports the following major (and only) proprietary fund:
Country Club Enterprise Fund
This fund accounts for the activities related to the Country Club.
Additionally, the Village reports the following fiduciary funds:
Pension Trust Funds
The pension trust funds account for the activities of the General Employees Retirement
Fund and the Fire and Police Retirement Fund, which accumulate resources for pension
benefits to qualified employees.
Agency Funds
The agency funds account for assets that are held for other parties and cannot be used to
finance the Village's own programs.
Private sector standards of accounting and fmancial reporting issued prior to December 1, 1989,
are followed in both the government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of GASB. Governments
also have the option of following subsequent private sector guidance for their business-type
activities and enterprise funds, subject to this same limitation. The Village has elected not to
follow subsequent private sector guidance..
As a general rule, the effect of interfimd activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the government's
country club and various other functions of the Village. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's country club enterprise fund are charges to
customers for sales and services. Operating expenses for the enterprise. fiznd include the cost of
sales and services, administrative expenses and depreciation on capital assets. All revenues and
expenses not meeting this defmition are reported as non-operating revenues and expenses.
24
i
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THE VILLAGE OF NORTH PALM EACH, FLORIDA ~
NOTES TO BASIC FINANCIAL STATEMENTS r
(Continued)
r~
NOTE 1. SiININIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Liabilities, and Net Assets or Equity r
Cash and Cash Rquvvalents
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 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 is a " 2a-71ike"pool and, thus,
these investments are valued using the pooled share price. `
Restricted Assets
Cash and cash equivalents are restricted for the following purposes: `
2003 2002
Law enforcement education $ 17,127 $ 14,077
Public safety 15,239 16,054
Library 143,628. 101,181 `
Recreation facilities 9,000 4,000
Total restricted assets $ 184,994 $ 135,312
When both restricted and unrestricted resources are available for use, it is the Village's ` 1
policy to use restricted resources first, then unrestricted resources as they are needed. 1
Interfund Transactions j
L
Activity between funds that is representative of lending borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds" `
(i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the
noncurrent portion of interfund loans). All other outstanding balances between funds are
reported as "due to/from other funds." .Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as internal balances.
Transfers and interfund balances totally within governmental activities and those that are
totally within business-type activities are eliminated and not presented in the government- `
wide financial statements. Transfers and balances between governmental and business-type
activities are presented in the government-wide financial statements.
~ll
I
va ;
-~ ' i
z5
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SLfMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Assets, Liabilities, and Net Assets or Equity (Continued)
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 inventory items are purchased and are
charged against operations in the period when used.
Capital Assets and Depreciation
Capital assets, which include property, plant, and equipment, are reported in the applicable
governmental or business-type activities column in the government-wide financial
statements. Capital assets are defined by the Village as assets with an initial individual cost
of $1,000 or more and an estimated life in excess of one year. The Village has elected to
retroactively apply the capitalization requirements of GASB Statement No. 34 to major
general infrastructure assets acquired in fiscal years ending after June 30, 1980, or that were
significantly reconstructed or improved during that multi-year period.
The accounting and reporting treatment applied to the capital assets associated with a fund
are determined by its measurement focus. General capital assets are assets of the Village as
a whole. When purchased, such assets are recorded as expenditures in the governmental
funds and capitalized as assets in the government-wide statement of net assets. General
capital assets are carried at historical cost. Where cost cannot be determined from the
available records, estimated historical cost has been used to record the estimated value of
the assets. Assets acquired by gift or bequest are recorded at their fair value at the date of
acquisition.
Capital assets of the enterprise fund are capitalized in the fund. The valuation basis for
enterprise fund capital assets are the same as those used for general capital assets.
Additionally, net interest cost is capitalized on enterprise fund projects during the
construction period.
Additions, improvements, and other capital outlay that significantly extend the useful life of
an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as
incurred.
Depreciation has been provided over the estimated useful lives using the straight-line
method of depreciation. The estimated lives for each major class of depreciable fixed assets
are as follows:
Buildings and improvements 30 years
Improvements other than buildings 10 years
Golf course improvements 15 years
Equipment 3-10 years
26
1
1
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THE VILLAGE OF ~ORTH PALM BEACH, FLORIDA 111 {
r
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
r~
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Compensated Absences
The Village's employees are granted compensated absence. pay for vacation and sick leave in
varying amounts based on length of service. Unused compensated absences are payable upon
separation from service. Vacation is accrued as a liability when the employee earns benefits.
This means that the employee has rendered services that give rise to a vacation liability and it is
probable that the Village will compensate the employee in some manner, e.g., in cash or paid
time-off, now or upon termination or retirement. The Village uses the vesting method in
accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for
employees who are eligible to receive termination payments upon separation.
Compensated absences are accrued when incurred in the government-wide and proprietary
financial statements. A liability for these amounts is reported in the governmental funds only if ` j
they have matured, for example, as a result of employee resignations or retirements. For the J
governmental funds, compensated absences are liquidated by the general fund.
Long-Term Obligations `
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement
of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are ` 1
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the term of the related debt. ~
I
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other fmancing sources. Premiums received on debt issuances are reported ` ~
as -other financing sources, while discounts on debt issuances are reported as other fmancing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Net Assets
Equity in the government-wide statement of net assets and the proprietary fund is displayed in
three categories: 1) invested in capital assets net of related debt, 2) restricted, 3) unrestricted.
Net assets invested in capital assets net of related debt consist of capital assets reduced by
accumulated depreciation and by any outstanding debt incurred to acquire, construct, or
improve those assets. Net assets are reported as restricted when there are legal limitations ~--~
imposed on their use by Village legislation or external restrictions by other governments,.
creditors, or grantors. Unrestricted net assets consist of all net assets that do not meet the
defmition of either of the other two components. Net assets at the begimvng of the year have
been restated to correct an error in the reporting of net pension benefits. The effect of the
restatement was to increase net assets in governmental activities by $303,866.
2'~
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for
use for a specific purpose. Unreserved fund balance amounts that are reported as designations
of fund balances represent tentative plans for fmancial resource utilization in a future period.
The following is a description of the reserves and designations used by the Village.
Reserved for inventories and deposits -Indicates that a portion of fund balance is
segregated since these items do not represent "available spendable resources."
Reserved for restricted assets -Restricted for expenditures related solely to law
enforcement, library, recreation facilities, and a memorial fund.
Reserved for encumbrances -Represents outstanding purchase orders and open contracts at
year end which will be re-appropriated in the next fiscal year.
Reserved for employees' pension benefits -Restricted for payment of retirement benefits.
Budgetary Accounting
State of Florida statutes require that all municipal governments establish budgetary systems and
approve balanced 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 1st. 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 fmal 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, 2003, allows budget transfers based on the following regulations:
Appropriations within a department shall not be transferred in amounts. greater than $5,000
without the approval of the Council.
Appropriations for amounts more than $1,000 and up to $5,000 shall not be transferred
without the approval of the Village Manager.
Changes to total appropriations or addition of a new line item to the budget must be
approved by Council.
28
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THE VILLAGE ®F N®RTgI PALlO~IEACH, FL®RII)A
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SU1bIMAR~' OF SIGNII+ICAI~IT ACCOUNTING POLICIES (Continued)
Budgetary Accounting (Continued)
Unencumbered appropriations lapse at fiscal year end. Encumbrances at year end are
carried forward to the next year.
During the year, several supplementary appropriations were necessary. For the year ended
September 30, 2003, expenditures that exceeded appropriations in the general fund are as
follows:
Expenditures for health insurance exceeded appropriations in all departments due to r
increased health care costs.
Certain expenditures for capital outlay were not budgeted because the expenditures were
incurred as a result of issuing new debt.
Property Taxes , 1
Under Florida law, the assessment of all properties and the collection of all county, municipal J
and school board property taxes are consolidated in the offices of the County Property
Appraiser and County Tax Collector, respectively. All property is reassessed according to its
fair market value on January 1 of each year and each assessment roll is submitted to the State ~ 1
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, 2002, upon which the 2002-03 levy was based, was
approximately $1.138 billion. 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 process. The Palm Beach County Property Appraiser incorporates the Village's
millage into the total tax levy, which includes the County, County School Board, and special L
district tax requirements. The millage rate assessed by the Village for the year ended September
30, 2003, was 5.8000 ($5.80 for each $1,000 of assessed valuation).
Taxes may be paid less a 4% discount in November or at declining discounts each month
through the month of February. All unpaid taxes become delinquent on April 1 following the
year in which they are assessed. Delinquent taxes on real property bear interest at 18% per
year. On or prior to June 1 following the tax year, certificates are offered for sale for all
delinquent taxes on real property.
After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer.
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 j
sale of the property or by the five-year statute of limitation. At September 30, 2003, unpaid ~ ~
delinquent taxes are not material and have not been recorded by the Village.
29
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 1. SUNIlVIARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Concentration of Credit Risk
The Village performs ongoing credit evaluations of its customers and does not require
collateral. The Village maintains an allowance for uncollectible accounts at a level which
management believes is sufficient to cover potential credit losses.
Use of Estimates
The financial statements and related disclosures are prepared in conformity with accounting
principles generally accepted in the United States. Management is required to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and revenue and expenses
during the period reported. These estimates include the collectibility of accounts receivable, the
use and recoverability of inventory, the useful lives and impairment of tangible assets, and the
realization of net pension assets, among others. Estimates and assumptions are reviewed
periodically and the effects of revisions are reflected in the financial statements in the period
they are determined to be necessary. Actual results could differ from those estimates.
NOTE 2. DEPOSITS AND INVESTMENTS
Deposits
In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are
held in banking institutions approved by the State Treasurer of the State of Florida to hold
public funds. Under Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the
State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or
another banking institution eligible collateral. In the event of a failure of a qualified public
depository, the remaining public depositories would be responsible for covering any resulting
losses. The Village's deposits at year end are insured or collateralized with securities held by
the entity or by its agent in the entity's name.
Investments
The Village is authorized to invest its funds as follows:
1. Interest-bearing checking or savings accounts in qualified public depositories, as defined in
Chapter 280, Florida Statutes;
2. Interest-bearing time deposits in qualified public depositories, as defined in Chapter 280,
Florida Statutes;
3. The Local Government Surplus Funds Trust Fund or any intergovernmental investment
pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in Chapter
163, Florida. Statutes;
30
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I
THE VILLAGE OF NORTH PALM EACH, FLORIDA
NOTES TO BASIC FINANCL~L STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
4. Securities and Exchange Commission registered money market funds with the highest credit
quality rating from a nationally recognized rating agency;
5. Direct obligations of the United States Treasury;
6. Federal agencies and instrumentalities;
7. Securities of, or interest in, any open-end or closed-end management-type investment
company or investment 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 directly or
through an authorized custodian;
8. Other investments authorized by law or by ordinance by the Village.
Investments of the General Employees' Retirement Fund can consist of every kind of '-
investment except: options, futures, municipal bonds, non-investment grade bonds, foreign
securities, precious metals, private placements, short sales, purchases on margin, real estate, and
partnerships.
Investments of the Fire and Police Retirement Fund can consist of the following: }
1) Time, savings, and money market deposit accounts of a national bank, a state bank insured
by the Federal Deposit Insurance Corporation or its successor, or a Savings and Loan
institution insured by the Federal Savings and Loan Insurance Corporation or its successor, ,
provided the amount deposited does not exceed the insured amount.
2) Obligations of the United States Government or obligations guaranteed as to principal and
interest by the United States Government or any agency thereof.
3) Stocks, bonds or other evidence of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States or any state of the United States or the
District of Columbia and domiciled therein, provided:
a. Equities will be traded on one or more of the recognized national exchanges.
b. The security meets any one of the following rating criteria:
L~
i.) Fined income: Standard & Poor's AAA, AA, or Moody's Aaa, Aa, A.
ii.) Equities: Value Line Investment Survey Rank for Safety, 1, 2, 3, or Standard &
~1
~t
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
iii.) Money Market Instruments: Standard & Poor's Al or Moody's P1.
c. Not more than ten (10) percent of the Fund's assets shall be invested in the common
stock or capital stock of any one issuing company.
d. Not more than five (5) percent of the Fund's assets shall be invested in preferred stock.
4) Commingled stock, bond, money market or mutual funds are permitted, provided their
investments are restricted to securities meeting the above criteria.
The State Board of Administration is part of the Local Government Surplus Funds Trust Fund
and is governed by Chapter 19-7 of the Florida Administrative Code. These rules provide
guidance and establish the general operating procedures for the administration of the Local
Government Surplus Funds Trust Fund. Additionally, the Office of the Auditor General.
performs the operational audit of the activities and investments of the State Board of
Administration. The Local Government Surplus Funds Trust Fund is not a registrant with the
Securities and Exchange Commission (SEC); however, the board has adopted operating
procedures consistent with the requirements fora 2a=7 fund.
Investments are categorized to give an indication of the level of risk assumed by an 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.
A reconciliation of deposits and investments as shown on the statement of net assets and
statement of fiduciary net assets for the Village is as follows:
By category:
Cash and cash equivalents $ 4,712,397
Investments 12.314,515
Total deposits and investments 17.026.912
Presented in the statement of net assets:
Governmental activities
Cash and cash equivalents $ 3,181,204
Business-type activities
Cash and cash equivalents 128,924
Total statement of net assets 3,310,128
32
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THE VILLAGE OF NORTH PALM EACH, FLORIDA
NOTES TO BASIC FINANCIAL, STATEMENTS
(Continued)
r
NOTE 2. DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued) r
Presented in the statement of fiduciary net assets:
Pension trust funds )
Cash and cash equivalents 1,156,116 l
Investments 12,314,515
Agency funds
Cash and cash equivalents 246,153
Total fiduciary funds 13,716,784
Total deposits and investments 17.026.912 r
The following matrix presents the components of the Village's deposits and investments at September 30, 2003.
Investment risk categories are indicated in the last column.
Reported Fair
Unrestricted Restricted Amount Value Category
Cash and cash equivalents:
Deposits $ 1,655 $ - $ 1,655 $ 1,655 -
Repurchase agreement 984,531 - 984,531 984,531 3
Money market mutual funds - 445,326 445,326 445,326 - `
State Board ofAdministration ~
Investment Pool 2,056,756 1,224,129 3,280,885 3,280,885 -
Total 3,042,942 1,669,455 4,712,397 4,712,397 ` ~
Investments:
U.S. government securities $ - $ 2,163,264 $ 2,163,264 $ 2,163,264 2
Corporate bonds - 2,972,823 2,972,823 2,972,823 2 `
Common stock - 7,178,428 7,178,428 7,178,428 2
Total investments - 12,314,515 12,314,515 12,314,515
Total $ 3,042,942 $ 13,983,970 $ 17,026,912 $ 17,026,912
NOTE 3. RECEIVABLES 1
L
Receivables at September 30, 2003, were as follows:
General Country Club Total
Receivables:
State-shared revenues $ 167,625 $ - $ 167,625
Franchise fees 210,248 - 210,248 ~ j
Utility taxes 19,895 - 19,895
Accounts 106,639 40,482 147,121
Special assessments 2,025 2,025
Gross receivables 506,432 40,482 546,914
Less allowance for uncollectibles _ _ _
Net total receivables $ 506,432 $ 40,482 $ 546,914 ~ ' j
33
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 4. CAPITAL ASSETS
Capital assets activity for the year ended September 30, 2003, was as follows:
Balance Balance
October 1, September 30,
2002 Additions Deletions 2003
Governmental Activities:
Capital assets not. being depreciated:
Land $ 2,055;889 $ - $ - $ 2,055,889
Construction in progress 590,636 - (590,636) -
Capital assets not being depreciated 2,646,525 - (590,636) 2,055,889
Capital assets being depreciated:
Buildings and improvements 8,594,971 1,907,943 (30,757) 10,472,157
Furniture, fixtures, and equipment 4,798,843 1,173,962 (80,242) 5,892,563
Capital assets being depreciated 13,393,814 3,081,905 (110,999) 16,364,720
Less accumulated depreciation for:
Buildings and improvements (2,685,296) (377,779) 21,251 (3,041,824)
Furniture, fixtures, and equipment (3,003,644) (653,383) 77,921 (3,579,106)
Total accumulated depreciation (5,688,940) (1,031,162) 99,172 (6,620,930)
Governmental activities
capital assets, net $ 10,351,399 $ 2,050,743 $ (602,463) $ 11,799,679
Business-Type Activities:
Capital assets not being depreciated:
Land $ 1,051,311 $ - $ - $ 1,051,311
Capital assets not being depreciated 1,051,311 - - 1,051,311
Capital assets being depreciated:
Buildings and improvements 1,461,852 13,569 - 1,475,421
Improvements other than buildings 574,318 - - 574,318
Improvements -golf course 1,603,940 - - 1,603,940
Furniture, fixtures and equipment 669,554 102,004 (68,900) 702,658
Capital assets being depreciated 4,309,664 115,573 (68,900) 4,356,337
Less accumulated depreciation for:
Buildings and improvements (593,270) (58,789) - (652,059)
Improvements other than buildings (344,740) (34,060) - (378,800)
Improvements-golf course (1,130,299) (65,893) - (1,196,192)
Furniture, fixtures and equipment (490,098) (68,700) 57,202 (501,596)
Total accumulated depreciation (2,558,407) (227,442) 57;202 (2,728,647)
Business-type activities
capital assets, net $ 2,802,568 $ (111,869) $ (11,698) $ 2,679,001
34
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THE VILLAGE OF l~TORTH PALM BEACH, FLORIDA
~ 1
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
r~ ~
NOTE 4. CAPITAZ ASSETS (Continued)
Depreciation expense was charged to functions as follows: r
Governmental Activities:
General government $ 53,120 ' j
Public safety 470,791 J
Public services 186,934
Leisure services 318,817
Total depreciation expense $ 1,029,662
Business-type activities:
Country Club $ 227,442
NOTE 5. LONG-TERM DEBT
Changes in Long-Term Liabilities `
Long-term liability activity for the year ended September 30, 2003, was as follows:
Balance Balance Amount Due
October 1, September 30, Within
2002 Additions Reductions 2003 One Year ~ 'il
Governmental activities:
Loans payable $ 7,334,853 $ 403,000 $ 790,220 $ 6,947,633 $ 778,455
Capital leases 736,967 - 149,175 587,792 152,771
Compensated absences payable 653,852 446,263 401,303 698,812 400,000
Total $ 8,725,672 $ 849,263 $ 1,340,698 $ 8,234,237 $ 1,331,226
Business-type activities:
Loans payable $ 651,058 $ - $ 137,586 $ 513,472 $ T00,600 `-
Compensated absences payable 67,109 51,826 38,003 80,932 38,000
Total $ 718,167 $ 51,826 $ 175,589 $ 594,404 $ 138,600
L_
Loans Payable
$860,000 Promissory Note ~-~
The Village Council adopted Resolution No. 71-2000 authorizing the execution of a loan agreement in the
amount of $860,000 for the purpose of refinancing an existing loan incurred for the renovation of the Village's
Country Club restaurant and for capital expenditures in the general fund. The loan is secured by franchise fees
and public service taxes of the Village. Principal and interest payments are due quarterly, with a final maturity
date of November 15, 2010. The interest rate on the loan is 5.22%.
Amounts currently outstanding on the. note are as follows:
Purpose Amount
Governmental activities $ 125,368
Business-type activities 464,684
$ 590,052
'I
35
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONGTERM DEBT (Continued)
Loans Payable (Continued)
Annual debt service requirements to maturity are as follows:
Governmental Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 53,917 $ 6,544 $ 60,461
2005 56,788 3,730 60,518
2006 14,663 191 14,854
Total $ 125,368 $ 10,465 $ 135,833
Business-Type Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 54,191 $ 24,257 $ 78,448
2005 57,076 21,428 78,504
2006 60,114 18,448 78,562
2007 63,314 15,310 78,624
2008 69,684 12,005 81,689
2009-2011 160,305 13,280 173,585
Total $ 464,684 $ 104,728 $ 569,412
$2,800,000 Promissory Note
The Village Council adopted Resolution No. 46-2001 authorizing the execution of a note 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, 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:
Governmental Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 256,444 $ 75,304 $ 331,748
2005 265,133 66,467 331,600
2006 274,117 57,537 331,654
2007 283,404 48,306 331,710
2008 293,007 38,860 331,867
2009-2011 939,943 55,721 995,664
Total $2,312,048 $ 342,195 $2,654,243
36
i
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TT I
THE VILLAGE OF NORTH PALM BEACH, FLORIDA ~
NOTES TO BASIC FT.NANCTAT STATEMENTS r
(Continued)
NOTE 5. LONGTERM DEBT (Continued)
Governmental Activities: (Continued)
$600,000 Promissory Note
The Village Council adopted Resolution No. 18-99 authorizing the execution of a loan
agreement for the purpose of fmancing 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, with a fmal 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 r 1
follows: 1
Year Ending ` 1
September 30, Principal Interest Total J
2004 $ 65,610 $ 758 $ 66,368 l
$6,560,000 Promisso ~ j
The Village Couneil adopted Resolution No. 8-97 authorizing -the issuance of a note in the
principal amount of $6,560,000 to fmance the acquisition, construction, equipping, and
improving of a public safety building, a community center, and a recreation building. A portion l
of the proceeds was also used to refmance an existing loan incurred to make improvements to
the Country Club. ` 1
The promissory note is secured by franchise fees and public service taxes of the Village. l
Principal payments of $190,000 are due semi-annually on January 1 and August 1; with afinal -
maturity date of February 1, 2017. 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 interest rate will be adjusted by either of the following events:
a change in the maximum corporate tax rate, or the event of taxability of the interest on this
note. The effective rate at September 30, 2003, was 1.12% and this approximates the rate that `
was used to calculate the debt service requirements to maturity.
Amounts currently outstanding on the note are as follows:
Purpose Amount l
Governmental activities $ 4,050,000 ~ J
Business-type activities 40,000
$ 4,090,000 l
1
,
i
37
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONGTERM DEBT (Continued) -
Annual debt service requirements to maturity are as follows:
Governmental Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 300,000 $ 44,576 $ 344,576
2005 300,000 41,211 341,211
2006 300,000 37,847 337,847
2007 300,000 34,483 334,483
2008 300,000 31,119 331,119
2009-2103 1,500,000 105,131 1,605,131 .
2014-2017 1,050,000 23,549 1,073,549
Total $4,050,000 $ 317,916 $ 4,367,916
- Business-Type Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 40,000 $ 224 $ 40,224
$142,000 Promissory Note
The Village Council adopted Resolution No. 3-00 authorizing the execution of a loan
agreement for the purpose of fmancing 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. The loan is unsecured. Principal and interest payments are due monthly, with a
final maturity date of February 1, 2005. The interest rate on the loan is 4.33%.
Amounts currently outstanding on the note are as follows:
Purpose Amount
Governmental activities $ 29,901
Business-type activities 8,787
$ 38,688
Annual debt service requirements to maturity are as follows:
Governmental Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 24,106 $ 944 $ 25,050
2005 5,795 76 5,871
Total $ 29,901 $ 1,020 $ 30,921
38
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I
THE VILLAGE OF NORTH PALM EACH, FLORIDA
NOTES TO BASIC FINASICIAT STATEMENTS
(Continued)
NOTE 5. LONGTERM DEBT (Continued)
Business-Type Activities:
r~
Year Ending
.September 30, Principal Interest Total
2004 $ 6,409 $ 250 $ 6,659
2005 2,379 21 2,400 ~ ~ ~
Total $ 8,788 $ 271 $ 9,059
$271,000 and $132,000 Promissory Notes r 1
In January 2003, the Village Council adopted Resolution No. 8-2003 authorizing the issuance of )
promissory notes to fmance various capital expenditures. The notes are payable from the
Village's non-ad valorem tax revenues. r
The $132,000 note bears interest at 2.93% and is payable in six semiannual payments of
$23,158, beginning July 2003 and with final maturity in January 2006. Annual debt service
requirements to maturity for this note, which are payable by the general fund,. are as follows:
Governmental Activities: `
Year Ending
September 30, Principal Interest Total
2004 $ 43,333 $ 2,982 $ 46,315
2005 44,638 1,677 46,315
2006 22,816 342 23;158
Total $ 110,787 $ 5,001 $ 115,788
The $271,000 note bears interest at 3.82% and is payable in fourteen semiannual payments of 4 i
$22,286, beginning July 2003 and with fmal maturity in January 2010. Annual debt service f
requirements to maturity for this note, which are payable by the general fund, are as follows:
Governmental Activities:
Year Ending
September 30, Principal Interest Total
2004 $ 35,045 $ 9,527 $ 44,572
2005 36,441 8,131 44,572
2006 37,866 6,706 44,572
2007 39,347 5,225 44,572
2008 40,876 3,696 44,572
2009-2010 64,344 2,515 66,859
Total $ 253,919 $ 35,800 $ 289,719
m, ,i
i
39 c~
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 5. LONGTERM DEBT (Continued)
Capital Leases
The Village entered into lease agreements as lessee for financing the acquisition of various
equipment. The lease agreements qualify as capital leases for accounting purposes and
therefore have 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 assets acquired through capital leases are as follows:
Governmental
Activities
Asset:
Vehicles $ 1,061,391
Less: Accumulated depreciation (421,950)
Total $ 639,441
The future minimum lease obligations and the net present value of these minimum lease
payments as of September 30, 2003, were as follows:
Year Ending
September 30, Principal Interest Total
2004 $ 152,771 $ 15,918 $ 168,689
2005 155,326 11,171 166,497
2006 159,182 5,123 164,305
2007 69,086 1,995 71,081
2008 34,286 904 35,190
2009 17,141 183 17,324
Total $ 587,792 $ 35,294 $ 623,086
NOTE 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 coverage 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 insurance coverage
for the last three years.
40
r~
THE ~ILLAGE OF NORTH PALM EACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
r]
I
NOTE 6. RISK MANAGEMENT (Continued)
Employee Benefits Group (Continued) r,
The liability for unpaid claims is estimated using an industry average that is based on actual
claims paid. As of September 30, 2003, the Village recorded a liability for its employee benefit
plan in the amount of $192,564, because Village claims exceeded contributions for the year.
Changes in the claims liability since September 30, 2001, are as follows:
Claims and
Year Ended Claims Liability Change in Claim Claims Liability
September 30, Beginning of Year Estimates Payments End of Year
2001 $ 128,296 $ 484;762 $ (579,958) $ 33,100
2002 33,100 1,210,299 (1,097,504) 145,895 r
2003 145,895 1,632,265 (1,585,596) 192,564 1
Property and Casualty Group 1
The Village also participates in Southeast Risk Management Association (SERMA), a quasi- ~ 1
governmental agency created by an interlocal agreement, as authorized by Chapter 163, Florida
Statutes. SERMA administers the property 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
assessments 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 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, 2003, there were no liabilities recorded for property and casualty based on a ` C
recent actuarial valuation, which indicated that the reserve for incurred but not yet reported J
losses was adequately funded, and no additional contributions are required. l
~1 I
NOTE 7. PENSION PLANS
The Village maintains the following two separate single employer defined benefit plans: Village of v
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 plans are reported as pension trust funds and included as part of
the Village's reporting entity. Neither plan issues astand-alone fmancial report. Additional
information on these plans can be found beginning on page 68.
41
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. PENSION PLANS (Continued)
Each plan's financial statements are prepared using the accrual basis of accounting. Plan member
contributions are recognized in the period in which the contributions are due. Employer
contributions to each plan are recognized when due and the employer has made a formal
commitment to provide the contributions. Benefits and refunds are recognized when due and
payable in accordance with the terms of each plan.
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 Florida Division of Retirement reviews and approves each local government's
actuarial. report prior to its being appropriated for use for funding purposes. Additionally, the State
collects two locally authorized insurance premium 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 distributed after the State has
ascertained that the local government has met its actuarial funding requirement for the then most
recently completed fiscal year.
Investments are reported at fair value and are managed by third party money managers. The
Village's independent 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
Mutual Funds:
STI High Grade Bond Fund $ 2,420,906
SunTrust High-Grade Growth Equity Fund 1,871,361
SunTrust High Grade Relative Value Equity Fund 1,327,090
SunTrust U.S. Limited Capitalization Equity Fund 659,404
Fire and Police Retirement Fund
No nongovernmental investments exceed 5% of net plan assets.
The following schedule is derived from the respective actuarial reports and Village information for
the two pension plans as of October 1, 2002:
42
i
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~{1
THE VILLAGE OF NORTH I~ALM EACH, FLORIDA 1
NOTES TO BASIC FINANCIAL STATEMENTS T~
(Continued)
rj
NOTE 7. PENSION PLANS (Continued) ,
General Employees Fire and Police r
Plan Description:
Authority Village Ordinance Village Ordinance/State
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
InternaUParticipant Loans None None `
Membership and Plan Provisions:
Members:
Active Participants 88 31
Retirees and Beneficiaries 14 4 r
Terminated Vested 35 13
Normal Retirement Benefits: Option 1 Option 2
Retirement Age 65 60 55 r
Years of Service (minimum) 5 5 9
Accrual- (years 1-20) 2.00% 2.25% 2.50%
(over 20) 1 % 1 % - ` 1
Maximum None None 60% j
Years to Vest 10
Under 5 years 0% 0% -
5 or 6 years 50% 50%
7 or 8 years 75% 75%
9 or more years 100% 100%
Contributions:
Actuarial Rate:
Village 16.35% 3.50%
State n/a 5.09%
Participants 4.00%* 2:00%
Annual Pension Cost $ 509,583 $ 327,228 `
Contributions Made $ 503,220 $ 395,282
* Except for certain members who have elected not to contribute and for other members who have elected to
contribute only 2.00%.
i
43
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 7. PENSION PLANS (Continued)
General Employees Fire and Police
Actuarial Valuation:
Frequency Annual Annual
Latest Valuation 10/1/02 10/1/02
Basis for Contribution 10/1/02 10/1/02
Cost Method Frozen Entry Age Aggregate
Amortization: .
Method Level percent n/a
Period 28 years n/a
Open/Closed Closed n/a
Note: The aggregate actuarial cost method does not identify or separately amortize unfunded
actuarial liabilities.
Assumptions:
Investment Earnings (including
inflation) 8.5% /year up to retirement,
5.25% thereafter 8.0% /year
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:
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:
Age 25 18.8% 8.6%
Age 30 11.2% 7.5%
Age 35 6.3% 5.7%
Age 40 4.8% 3.9%
Age 45 3.4% 2.4%
Age 50 2.4% 1.2%
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
valuation (October 1, 2000).
44
i
r~
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
r~
NOTES TO BASIC FINANCIAT STATEMENTS
(Continued)
r~
NOTE 7. PENSION PLANS (Continued)
Annual Pension Cost and Net Pension Obligation (Asset): f
The Village's annual pension cost and net pension obligation (asset) for both plans for the
current year were as follows:
General Employees Fire and Police
Annual required contribution $ 502,855 $ 323,352
Interest on net pension asset (16,479) (8,799)
Adjustment to annual required contribution 23,207 12,675
Annual pension cost 509,583 327,228 ,
Contributions made (503,220) (395,282)
Decrease (increase) in net pension asset 6,363 (68,054)
Net pension asset, beginning of year (193,873) (109,993)
Net pension asset, end of year $ (187,510) $ (178,047)
Three-Year Trend Information
Annual Percentage Net Pension ` J
Year Pension of APC Obligation
Ended Cost (APC) Contributed (Asset)
General 9/30/01 $ 419,555 106.6% $(161,596)
Employees 9/30/02 435,473 107.4% (193,873)
9/30/03 509,583 98.75% (187,510) -
Fire and Police 9/30/01 $ 87,928 117.0% $ (97,438)
9/30/02 133,722 144.2% (109,993)
9/30/03 327,228 120.8% (178,047)
NOTE 8. CONTRACTS AND COMIVIITMENTS ` 1
Contracts J
The Village has a contract with Subaqueous Services, Inc. in the amount of $183,000 for a second
phase of canal dredging. As of September 30, 2003, no costs had been incurred on this contract.
Operating Leases
The Village is committed under a lease agreement for golf carts in the enterprise fund. The lease is 4~
considered for accounting purposes to be an operating lease. Lease payments for the year ended
September 30, 2003, were $47,760. Future minimum lease payments are $47,760 for the year
ending September 30, 2004.
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 September 30, 2003, were $6,000. Future minimum lease payments are $6,000 for
the year ending September 30, 2004. ~ ' j
45
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO BASIC FINANCIAL STATEMENTS
(Continued)
NOTE 8. CONTRACTS AND COMIVIITMENTS (Continued)
Operating Leases (Continued)
The Village is committed under a lease agreement as lessor of the food and beverage operations at
the North Palm Beach Country Club. The lease is considered for accounting purposes to be an
operating lease. As part of the lease agreement, the Village receives a percentage of sales of the
lessee and reimbursements for utilities and financed assets. The Village received $110,409 for the
year ended September 30, 2003, under the terms of this lease agreement. Future minimum lease
payments for the year ending September 30, 2004, are contingent upon sales and expenses of the
operations by the lessee.
NOTE 9. 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 $69,870 to Seacoast during the fiscal
year for water and sewer service.
NOTE 10. 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 full amount of the annual premium.
Expenditures for post-retirement health care and life insurance benefits are recognized as
expenditures as claims are paid.
46
i
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I
r
T'HE VILLAGE OF IlTORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive r
Original Final (See Note 1) (Negative)
Budgetary fund balance, October 1 $ 2,031,067 $ 2,306,067 $ 2,306,067 $ -
Resources (inflows):
Taxes:
Ad valorem taxes 6,268,014 6,268,014 6,365,000 96,986
Sales and use taxes:
Local option gas tax trust 170,000 170,000 191,922 21,922
Motor fuel gas tax 80,000 80,000 90,462 10,462
Total sales and use taxes 250,000 250,000 282,384 32,384
Franchise taxes:
Electricity 670,000 670,000 701,567 31,567
Telephone 32,000 32,000 - (32,000)
Gas 3,000 3,000 10,509 7,509
Water 185,000 185,000 178,209 (6,791)
Total franchise taxes 890,000 890,000 890,285 285
Utility service taxes: ` 1
Electricity 860,000 860,000 903,946 43,946 J
Telecommunication 600,000. 600,000 797,366 197,366
Gas 38,000 38,000 53,841 15,841
Total utility service taxes 1,498,000 1,498,000 1,755,153 257,153
Total taxes 8,906,014 8,906,014 9,292,822 386,808
Licenses and permits: )
Village occupational licenses 203,000 203,000 211,852 8,852
Building permits 200,000 200,000 474,695 274,695
Other licenses and permits:
Bicycle registrations 15 15 1 (14)
Total licenses and permits 403,015 403,015 686,548 283,533
Intergovernmental revenue: t
State shared revenue:
General government:
State shared revenue 260,000 260,000 261,326 1,326 `-
Alcoholic beverages licenses 9,000 9,000 7,1.86 (1,814)
Local government 1/2 cent sales tax 875,000 875,000 865,826 (9,174)
Total state shared revenue 1,144,000 1,144,000 1,134,338 (9,662)
Transportation:
Motor fuel tax rebate 6,000 6,000 7,790 1,790 ;
: i
`I
Continued on the following page.
47
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
County shared revenues:.
County occupational licenses $ 30,000 $ 30,000 $ 31,861 $ 1.,861
911-system enhancement program 128,123 128,123 55,160 (72,963)
County grant - 35,189 34,937 (252)
DCA grant - 10,000 16,143 6,143
Total county shared revenues 158,123 203,312 138,101 (65,211)
Total intergovernmental revenue 1,308,123 1,353,312 1,280,229 (73,083)
Charges for services:
General government:
Sale of maps and publications 600 600 461 (139)
Certify, copy & research 1,100 1,100 1,668 568
Election ding fees 40 40 56 16
Total general government 1,740 1,740 2,185 445
Public safety:
Accident reports and identifications 2,000 2,000 2,430 430
Ambulance fees 180,000 180,000 169,761 (10,239)
Total public safety 182,000 182,000 172,191 (9,809)
Physical environment:
Refuse collection fees 140,000 140,000 137,662 (2,338)
Rental of cellular tower 72,000 72,000 102,573 30,573
Protective inspections fees 1,000 1,000 360 (640)
Total physical environment 213,000- 213,000 240,595 27,595
Culture and recreation:
Library:
Memberships 4,500 4,500 4,243 (257)
Copying 1,000 1,000 819 (181)
Postage 600 600 620 20
Recreation:
Program activity fees 3,000 3,000 4,700 1,700
Arts and crafts 3,200 3,200 2,224 (976)
Summer programs 7,000 7,000 10,400 3,400
Other:
Lost books -library 700 700 1,175 475
Recreation facility usage fees 35,000 35,000 59,708 24,708
Heritage Day - - 5,675 5,675
Special recreation facilities:
Marina 75,000 75,000 74,127 (873)
Marina decals 7,500 7,500 7,707 207
Total culture and recreation 137,500 137,500 171,398 .33,898
Continued on the following page.
48
1
r-
1
Tl~ VILLAGE OF NORTH PALM BEACH. FLORIDA r
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive 1
Original Final {See Note 1) (Negative) l
Zoning and annexation fees $ - $ - $ 17,170 $ 17,170
Total charges for services 534,240 534,240 603,539 69,299
Fines and forfeitures:
Court cases: r
Court fines 145,000 145,000 52,891 (92,109)
Police education $2.00 6,000 6,000 1,548 (4,452)
Total court cases 151,000 151,000 54,439 (96,561)
Library fines ~ 7,500 7,500 8,866 1,366
Other:
Parking fines 2,000 2,000 4,858 2,858
False alarm fines 12,000 12,000 7,650 (4,350)
Alarm users permit fee 20,000 20,000 19,335 (665)
Occupational license penalty 7,000 7,000 6,267_ (733).
Outside services 4,000 4,000 8,911 4,911
Code enforcement 7,000 7,000 2,815 (4,185)
Seized tag payment 200 200 250 50 `
Total other 52,200 52,200 50,086 (2,114)
Total fines and forfeitures 210,700 210,700 113,391 (97,309)
Revenue from use of money:
Interest:
Interest earned 12,000 12,000 2,395 (9,605)
Interest earned -SBA 80,000 80,000 52,159 (27,841)
Total revenue from use
of money 92,000 92,000 54,554 (37,446)
4
Miscellaneous Revenue:
Other miscellaneous revenue:
Reimbursements from the Country Club: ~
Administration 70,000 70,000 70,000 -
Maintenance - - 3,592 3,592
Total reimbursements from the
L1
Country Club 70,000 70,000 73,592 -3,592
Other: _ I
Insurance refunds - - 3,652 3,652
Worker's compensation refunds 400 400 11,208 10,808
Wabash assessment 2,500 2,500 2,531 31
Special pay reimbursements 2,640 2,640 - (2,640) ~-
Other:
Discounts -earned 5,000 5,000 7,313 2,313
Commissions -telephone 50 50 - (50)
Continued on the followingpage.
49
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Commissions -vending machine $ - $ - $ 157 $ 157
Miscellaneous revenues - - 8,626 8,626
Total miscellaneous revenue 80,590 80,590 107,079 26,489
Other financing sources:
Sale of surplus equipment - - (56) (56)
Amounts available for
appropriation 13,565,749 13,885,938 14,444,173 558,235
Charges to appropriations (outflows):
General government:
Village Council:
Personal services:
Executive salaries 31,200 31,200 31,200 -
FICA 2,387 2,387 2,387 -
Worker's compensation 2,340 2,340 2,340 -
Operating expenses:
Donations 3,000 - - -
Professional services 4,000 4,932 4,682 250 -
Accounting and auditing 25,000 25,000 24,051 949
Internal auditing 20,000 20,000 20,000 -
Travel 4,698 6,698 4,196 2,502
R&M furniture & equipment 584 584 469 115
Employee relations 3,000 2,736 2,736 -
Advertising 7,000 11,297 11,296 1
Advisory Board dinner 6,000 5,400 5,383 17
Office supplies 200 200 145 55
Publications & subscriptions 60 60 40 20
Membership & dues 8,979 8,380 8,380 -
Conference & seminars 7,450 - - -
Training and education 500 100 78 22
Total Village Council 126,398- 121,314 117,383 3,931
Village Manager:
Personal services:
Executive salaries 198,317 194,317 194,317 -
Regularpay 33,586 33,586 33,586 -
Certificationpay 2,000 2,000 - 2,000
Holiday gifts 200 200 200 -
FICA 17,741 17,741 17,336 405
Pension-general employees 27,829 27,829 20,038 7,791
Health insurance 9,820 9,820 13,856 (4,036)
Life insurance 1,623 1,623 1,623 -
LTD insurance 3,084 3,084 2,281 803
Worker's compensation 17,393 17,393 17,393 -
Continued on the following page.
50
i
f~
THE VILLAGE OF NORTH BAL1~'I BEACH. F+'LOItIDA r
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original- Final (See Note 1) (Negative)
Operating expenses:
Contract labor $ - $ 5,870 $ 4,893 $ 977
Employee assistance program 300 420 445 (25)
Administration fee 500 500 500 -
Professional services - 2,130 2,129 1 r
Travel 10,335 2,225 2,029 196
Auto allowance 7,200 2,600 2,540 60
Telephone 8,100 9,400 9,425 (25) T
Insurance-surety bond 750 750 - 750
Computer supplies 4,000 5,500 5,588 (88)
R&M furniture & equipment 200 200 - 200
Printing and binding 500 500 252 248
Employee relations 4,000 1,500 1,197 303
Advertising 500 810 802 8
Office supplies 1,000 1,350 1,354 (4)
Furniture supplies 250 250 - 250
Publications & subscriptions 4,425 3,425 2,863 562
Membership & dues 4,850 4,850 4,245 605 ~ l
Conference and seminars 2,545 1,075 850 225 J
Training and education 1,500 500 50 450
Capital outlay:
Computer hardware & software - - 6,416 {6,416)
Office equipment 500 500 400 100
Total Village Manager 363,048 351,948 346,608 5,340
Finance:
Personal services:
Executive salaries 89,316 89,316 89,316 -
Regularpay 152,790 152,790 152,660 130 ~-
Part-time pay 1,000 1,000 - 1,000
Overtime pay 9,660 9,660 7,069 2,591
Holiday gifts 250 250 250 -
FICA 19,261 19,261 19,045 216
Pension-general employees 30,212 30,212 30,212 -
Health insurance 12,912 12,912 18,219 (5,307)
-~
Life insurance 1,700 2,200 2,200 -
LTD insurance 3,220 3,220 3,220 -
Worker's compensation 18,882 18,882 18,882 -
Operating expenses:
Professional services 3,500 2,000 500 1,500
Contractual services 11,000 11,000 9,690 1,310
Travel 5,760 4,210 2,733 1,477
Telephone 5,000 5,000 4,805 195
Insurance-surety bond 1,500 1,200 1,200 -
6J I 1
Continued on the following page.
51
THE VILLAGE OF NORTH PALM. BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Finai Budget
Basis Positive
Original Final (See Note 1) (Negative)
R&M furniture & equipment $ 2,000 $ 2,000 $ 1,560 $ 440
Printing and binding 3,500 3,700 3,656 44
Employee relations 1,200 1,200 1,009 191
Office supplies 2,500 3,000 2,322 678
Computer supplies 3,200 3,300 3,263 37
Publications & subscriptions 300 400 405 (5)
Membership and dues 650 800 775 2S
Conference and seminars 1,300 1,600 1,565 35
Training and education 600 600 418 182
Capital outlay:
Computer hardware
& software 1,000 - 6,616 (6,616)
Total Finance 382,213 379,713 381,590 (1,877)
Village Clerk:
Personal services:
Executive salaries 57,311 57,311 57,311 -
Regularpay 65,309 65,309 61,594 3,715
Part-time pay 13,783 5,283 5,254 29
Holiday gifts 150 150 100 50
FICA 10,437 9,937 8,949 988
Pension-general employees 14,714 14,714 14,714 -
Health insurance 7,704 7,704 10,870 (3,166)
Life insurance 861 861 861 -
LTD insurance 1,631 1,631 1,399 232
Worker's compensation 10,230 9,770 9,770 -
Operating expenses:
Contractual services 1,500 1,500 135 1,365
Travel 292 99 99 -
Telephone 2,500 2,500 1.,859 641
Rental-facility 1,250 1,250 1,000 250
Insurance-surety bond 110 110 100 10
R&M building & grounds 120 120 25 95
R&M furniture & equipment 1,950 1,950 1,641 309
Printing and binding 1,890 1,890 1,726 164
Employee relations 500 S00 69 431
Recording fees/court cost 1S0 150 156 (6)
Trophies, awards & prizes 910 460 455 5
Office supplies 2,500 2,850 2,764 86
Recording tapes 170 270 252 18
Records retention supplies 100 100 11 89
Flower expense 800 41 S 415 -
Publications & subscriptions 376 376 378 (2)
Membership & dues 330 330 280 50
Continued on the following page.
52
i
i
THE vII,LAGE ®F l~TORTH PALIez BEACH. FLORIDA r
Budgetary Comparison Schedule
General Fund (Continued) ~
Year Ended September 30, 2003
Budgeted Amounts .Actual on Variance with ~ ~
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Conference and seminars $ 620 $ 620 $ 330 $ 290
Training and education 600 262 262 -
Capital outlay:
Computer hardware & software - - 3,720 (3,720)
Furniture & fixtures 1,000 1,000 718 282
Total Village Clerk 199,798 189,422 187,217 2,205
Village Attorney:
Operating expenses:
Monthly retainer 85,000 88,900 88,839 61
Special legal services 20,000 15,000 14,951 49 -
Labor services 20,000 15,000 13,484 1,516
Total Village Attorney 125,000 118,900 117,274 1,626
Planning and Community ` 1
Development: 1
Contractual services:
Engineering/planning 10,000 10,500 10,513 (13) ` )
Archivist/historian 200 - - - J
NLB/CRA conceptual planning 10,500 - - -
Comprehensive plan `
amendments 10,000 -
Northlake Boulevard Redevelopment 10,000 10,000 10,000 -
Total Planning and i
Community Development 40,700 20,500 20,513 (13) ~ J
General Services:
Operating expenses: `
Contract Labor 9,000 8,500 8,210 290
Telephone 2,600 3,600 3,552 48
Postage 40,000 37,000 34,100 2,900 1
Electricity 20,000 19,030 12,178 6,852 ~ 1
Water and sewer 2,300 2,300 2,253 47
Gas 100 100 - 100
Solid waste disposal 400 400 315 85
Rental-postage equipment 2,000 2,200 2,179 21
Rental-copier equipment 8,000 7,800 7,768 32
Insurance -package 150,000 145,000 143,909 1,091
R&M building & grounds 1,000 1,000 487 513
R&M furniture & equipment 3,000 2,900 2,507 393
Printing and binding 7,500 7,100 6,857 243
Newsletter supplies 13,000 11,000 11,052 (52)
Office supplies 1,000 1,400 1,254 146
Building maintenance supplies 3,000 2,200 1,649 551 4
d .i
Continued on the following page.
53
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Furniture/fixtures supplies $ 150 $ 150 $ - $ 150
Irrigation supplies 300 300 28 272
Machinery & equipment supplies 1,000 1,100 1,074 26
Fertilizers 500 500 - 500
Custodial supplies 2,500 2,000 1,634 366
Refreshments and supplies 1,500 1,000 615 385
Total General Services 268,850 256,580 241,621 14,959
T®tal general
government 1,506,007 1,438,377 1,412,206 26,171
Public Safety:
Law enforcement:
Personal services:
Executive salaries 297,648 297,648 297,648 -
Regular pay 1,520,528 1,425,528 1,425,528 -
Part-time pay 64,764 64,764 64,764 -
Overtime pay 85,000 140,000 140,000 -
Holiday overtime 40,000 38,800 37,483 1,317
Training overtime 30,000 27,000 22,303 4,697
Outside services pay - - 5,956 (5,956)
Special pay 24,500 16,500 14,802 1,698
Holiday gifts 2,776 2,776 2,775 1
FICA 157,775 154,275 154,275 -
Pension-general employees 46,745 46,745 46,745 -
Pension-police and fire 80,409 168,409 168,409 -
Health insurance 102,715 102,715 144,932 (42,217)
Life insurance 12,720 12,720 12,720 -
LTD insurance 23,687 20,687 19,437 1,250
Worker's compensation 141,222 141,222 141,222 -
Operating expenses:
Physical exams 7,565 4,565 3,118 1,447
Donations - - 8,297 (8,297)
Laundry & dry cleaning 30,000 27,355 27,360 (5)
Travel 25,000 15,500 13,447 2,053
Continued on the following page.
54
1
r l
r l
THE VILLAGE OF NORTH PALII~I BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on i~ariance with
Budgetary Final Budget
Basis Positive r
Original Final (See Note 1) (Negative)
Telephone $ 4,869 $ 4,869 $ 4;637 $ 232 ,.3
Rental-equipment 10,158 8,758 7,963 795
R&M automotive 9,000 16,300 14,735 1,565
R&M machinery & equipment 19,716 11,641 11,143 498
R&M PA & communication 14,626 33,576 29,217 4,359 'r
R&M computer 7,000 1,200 360 840
Printing & binding 7,000 6,750 6,519 231
Photographic 4,000 4,000 2,490. 1,510 " ~ j
Employee relations 1,500 1,500 420 1,080
Advertising 4,000 4,000 3,870 130
Licenses & fees 11,855 14,955 14,713 242 j
Prisoner & jail expenses 400 400 206 194
Special investigation 2,000 775 352 423 ~I
Victim examination fee 250 - - -
Appreciation Banquet 4,500 - - -
Office supplies 6,500 7,250 6,889 361
Computer supplies 10,000 10,000 9,629 371
K-9 supplies 2,000 2,750 2,566 184 ~ l
Machinery & equipment supplies 200 200 278 (78) J
Auto parts supplies 14,000 17,750 17,316 434
Tires and tubes 2,900 4,150 4,173 (23)
Safety supplies 20,000 16,500 14,505 1,995
Chemicals 500 500 281- 219
Gas, oil & lubricants 34,822 35,522 35,518 4
Refreshments & supplies 1,100 1,100 665 435
Uniforms & shoes 25,000 22,180 22,047 133
Ammunition & gun parts 6,000 5,500 4,754 746 -
Fingerprinting supplies 2,000 2,000 1,968 32
Publications & subscriptions 1,670 3,170 2,750 420
Membership & dues 2,035 2,035 1,840 195
Conference & seminars 4,200 2,700 1,285 1,415
Training & education 26,000 11,360 9,573 1,787 ~ J
2nd dollar education 6,000 1,990 50 1,940
SRT startup cost 70,000 65,120 65,114 6
Capital outlay:
Capital 10,280 21,425 19,598 1,827
Automotive 140,400 140,400 139,833 567
Computer hardware & software 78,364 75,264 49,240 26,024
Continued on the following page.
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Office equipment $ 1,700 $ 1,700 $ 1,646 $ 54
Audio, visual & communication 7,950 - (325) 325
Total Law Enforcement 3,267,549 3,266,499 3,259,039 7,460
Fire Prevention:
Personal services:
Executive salaries 64,496 64,496 64,496 -
Regularpay 277,299 267,299 267,299 -
Overtime pay 46,000 41,000 40,470 530
Holiday overtime 10,000 10,999 10,996 3
Training overtime 30,000 15,000 14,880 120
Special pay 18,000 13,000 10,690 2,310
Holiday gifts 1,150 1,150 1,150 -
FICA 34,102 34,102 32,205 1,897
Pension-police & fire 22,289 33,789 33,789 -
Volunteer length of service award 11,000 11,000 9,826 1,174
Health insurance 22,039 22,039 31,097 (9,058)
Life insurance 2,387 2,387 2,387 -
LTD insurance 4,545 4,545 4,238 307
Worker's compensation 25,636 25,636 25,636 -
Operating expenses:
Physical exams 1,000 1,000 644 356
Laundry and dry cleaning 5,760 5,760 5,820 (60)
Travel 2,811 1,352 80 1,272
R&M automotive 7,000 7,000 4,777 2,223
R&M machinery & equipment 2,500 2,500 2,385 115
R&M PA & communication 2,000 2,000 580 1,420
R&M computer 760 1,110 1,110 -
Licenses & fees 626 626 521 105
Volunteer appreciation 3,700 3,700 2,823 877
Office supplies 1,200 1,610 1,676 (66)
Audio, visual & communication 700 249_ - 249
Machinery & equipment supplies 4,000 5,750 5,604 146
Auto parts supplies 4,500 4,500 4,018 482
Chemicals 800 800 596 204
Gas, oil and lubricants 4,500 5,000 4,944 56
Refreshments and supplies 400 400 387 13
Uniforms and shoes 21,000 18,552 12,323 6,229
Flashlights & batteries 500 1,580 1.,378 202
Uniforms-volunteers 9,800 9,800 6,582 3,218
Publications & subscriptions 3,800 3,800 3,797 3
Membership & dues 435 485 481 4
Continued on the following page.
56
i
r~
'I'mo PILLAGE ol~' I~To>~T1~ Pal<,1~ BEACH. FLOx>mA ~ 1
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary 1:+'inal Budget
Basis Positive r l
Original Final (See Note 1) (Negative) J
Conference & seminars $ 665 $ 455 $ 275 $ 1.80
Training & education 10,000 8,150 7,810 340
Capital outlay:
Automotive 56,500 56,500 260,125 (203,625)
Computer hardware & software 1,600 1,351 1,350 1
Audio, visual & communication 12,500 12,000 12,000 -
Machinery & equipment 37,990 3,580 3,580 -
Total Fire Prevention 765,990 706,052 894,825 (188,773)
Emergency Medical Service:
Personal services: r
Executive salaries 59,400 59,400 59,400 -
Regularpay 506,540 506,540 506,540 -
Overtimepay 70,000 54,050 54,050 -
Holiday overtime 17,500 18,450 18,450 -
Training overtime 10,726 3,526 3,526 -
Special pay 3,480 6,180 5,361 819
Holiday gifts 650 650 650 -
FICA 51,075 50,875 50,875 -
Pension-general employees 28,179 28,179 28,179 -
Pension-police and fire 21,641 33,141 33,141 - ~ l
Health insurance 37,648 37,648 .53,122 (15,474) J i
Life insurance 3,960 3,960 3,960 -
LTD insurance 7,527 7,527 7,276 251 ` T
Worker's compensation 42,446 42,246 42,246 - J
Operating expenses:
Preventative medical service 1,912 1,912 1,307 605
Physical exams 500 500 400 100
Other professional services 14,400 15,500 15,500 -
Laundry & dry cleaning 9,360 9,360 9,300 60
Contractual services 3,575 5,802 5,705 97
Travel 3,025 2,125 1,878 247
Telephone 7,314 7,714 7,746 (32)
Electricity 2,000 2,200 2,180 20
Water & sewer 200 200 152 48 ,
Rental-equipment 8,460 8,610 8,610 -
R&M automotive 3,500 3,500 3,335 165
R&M machinery & equipment 5,500 1,100 937 163
R&M PA ~ communication 2,000 2,400 2,313 87
Licenses & fees 7,680 6,580 6,502 78
Office supplies 1,450 2,000 1,962 38
Computer supplies 250 550 160 390
E
Continued on the following page.
57
TAE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Building maintenance supplies $ 200 $ 200 $ 183 $ 17
Furniture/fixtures supplies 300 300 13 287
Machinery & equipment supplies 500 500 186 314
Auto parts supplies 3,500 3,500 3,017 483
Medical & safety supplies 24,000- 21,065 20,575 490
Disaster supplies 1,000 1,000 990 10
Chemicals 1,000 1,800 1,823 (23)
Custodial supplies 200 200 - 200
Gas, oil & lubricants 6,420 6,670 6,677 (7)
Refreshments & supplies 250 350 49 301
Uniforms & shoes 6,000 8,148 7,941 207
Flashlights & batteries 720 620 66 554
Publications & subscriptions 591 591 452 139
Membership & dues 100 100 - 100
Conference & seminars 1,610 1,610 905 705
Training & education .7,591 10,091 9,926 165
Capital outlay:
Capital 3,200 14,842 14,212 630
Automotive - - - -
Computer hardware & software 2,000 16,055 16,027 28
Machinery & equipment 8,970 6,620 5,753 867
Total Emergency
Medical Service 1,000,050 1,016,687 1,023,558 (6,871)
General Services:
Operating expenses:
Telephone 31,085 30,308 30,274 34
Postage 1,800 1,650 1,741 (91)
Electricity 43,000 47,170 47,170 -
Water and sewer 2,580 2,580 2,591 (11)
Gas 2,500 2,000 1,974 26
Solid waste disposal 1,600 1,600 1,400 200
Rental -copier equipment 7,000 8,100 7,995 105
R&M building & grounds 14,000 12,761 12,760 1
R&M furniture & equipment 1,000 - - -
Building maintenance supplies 1,500 1,500 1,525 (25)
Furniture & fixtures 5,000 2,550 2,510 40
Irrigation supplies 500 100 75 25
Machinery & equipment supplies 1,000 71 (468) 539
Fertilizers 400 400 282 118
Custodial supplies 4,150 3,345 3,342 3
Continued on the following page.
58
r~
T13E VILLAGE of l~oRTH BALM ~l;ACH. FLORiI)A r ~
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003 r
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive r
Original Final (See Note. l) (Negative)
Refreshment and supplies $ 4,100 $ 5,050 $ 5,008 $ 42 ~ ,
Capital outlay: i
Construction and major renovation 1,000 - - - j
Computer hardware & software 3,300 - - -
Total General Services 125,515 119,185 118,179 1,006 r
Total public safety 5,159,104 5,108,423 5,295,601 (187,178)
Public Services: ~ 1
Code Enforcement: 1
Personal services:
Executive salaries 125,801 125,801 125,801 -
Regular pay 148,701 148,701 148,701 -
Part-time pay 48,520 39,520 39,520 -
Overtime pay 1,500 1,500 1,138 362
Holiday gifts 425 425 425 -
FICA 24,711 24,711 23,644 1,067
Pension-general employees 32,940 32,940 32,940 -
Health insurance 19,096 19,096 26,945 (7,849) `
Life insurance 1,929 1,929 1,929 -
LTD insurance 2,597 2,597 2,597 -
Worker's compensation 24,227 24,227 24,227 -
Operating expenses:
Physical exams 200 200 88 112
Uniform rental 1,500 1,500 1,093 407
Contractual service 8,100 7,580 6,385 1,195
Travel 2,100 500 330 170
Telephone 13,100 13,410 13,408 2 ~
Electricity 4,500 4,500 3,632 868 ` ~ j
Water & sewer 500 500 465 35
R&M building & grounds 2,500 3,710 3,794 (84)
R&M furniture & equipment 5,000 5,800 4,637 1,163
R&M PA & communication 3,000 3,000 -2,400 600
Printing & binding 1,500 1,500 920 580
Reproduction 400 400 41 359
Employee relations 1,000 1,000 659 341 ~-
Advertising 4,000 2,610 2,312 298
County PW activities 300 300 300 -
Office supplies 5,000 5,000 4,882 118 )
Building maintenance supplies 500 500 314 186
Auto parts supplies 2,500 2,500 1,620 880
Tires and tubes 500 500 243 257
Custodial supplies 600 350 98 252
Gas, oil & lubricants 3,000 3,500 3,499 1
Continued on the following page.
59
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Refreshments & supplies $ 600 $ 850 $ 731 $ 119
Publications & subscriptions 460 710 698 12
Membership & dues 1,255 1,255 1,055 200
Conference & seminars 900 600 411 189
Training & education 3,500 1,950 1,470 480
Capital outlay:
Computer hardware & software - - 3,720 (3,720)
Total Code Enforcement 496,962 485,672 487,072 (1,400)
Facilities Maintenance:
Personal services:
Regular pay 257,803 252,803 243,808 8,995
Overtime pay 4,000 4,000 4,000 -
Holiday gifts 450 450 450 -
FICA 20,027 20,027 18,227 1,800
Pension-general employees 31,416 31,416 31,416 -
Health insurance 23,857 23,857 33,663 (9,806)
Life insurance 1,814 1,814 1,814 -
LTD insurance 3,429 3,429 3,305 124
Worker's compensation 19,335 19,335 19,335 -
Operating expenses:
Physical exams 200 200 264 (64)
Uniform rental 2,000 2,500 2,285 215
R&M machinery & equipment 350 250 230 20
R&M PA & communication 2,000 1,900 1,864 36
Shop tools & supplies 1,000 900 900 -
Machinery & equipment supplies 1,000 422 422 -
Auto parts supplies 3,000 2,778 2,635 143
Tires & tubes 600 300 175 125
Gas, oil & lubricants 4,500 5,400 5,390 10
Uniforms & shoes 750 750 844 (94)
Capital outlay:
Machinery & equipment 3,200 2,600 2,624 (24)
Total Facilities Maintenance 380,731 375,131 373,651 1,480
Solid Waste Collection:
Personal services:
Regular pay 594,628 581,821 581,821 -
Overtimepay 1,500 2,165 1,705 460
Holiday overtime 7,000 7,000 6,179 821
Holiday gifts 1,100 1,100 1,100 -
FICA 46,139 46,139 43,768 2,371
Continued on the followingpage.
60
1
i
i-
r I
Tl~ ~ILI~AGE of IOTORTH PALlvlt ~EAC1`I. FLOxIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Pension-general employees $ 72,378 $ 72;378 $ 72;378 $ -
Health insurance 51,462 51,462 72,614 (21,152) 1
Life insurance 4,184 4,184 4,184 - 1
LTD insurance 7,475 7,475 7,475 -
Worker's compensation 44,597 44,597 44,597 -
Operating expenses:
Preventative medical supplies 450 450 - 450
Physical exams 600 600 377 223 ~ l
Uniform rental 5,500 5,500 5,189 311 J
Solid waste disposal 140,000 130,950 109,226 21,724
R&M PA & communication 2,400 2,240 1,075 1,165
Advertising 800 1,132 1,132
Shop tools & supplies 700 700 652 48
Auto parts supplies 25,000 40,400 40,264 136
Tires & tubes 7,000 11,500 11,430 70
Chemicals 600 350 411 (61)
Gas, oil, & lubricants 40,000 46,550 46,420 130
Oil-grease 2,750 2,750 2,182 568
Uniforms & shoes 2,500 2,910 2,908 2
Recycling program 800 800 783 17
Capital outlay: ,
Automotive 135,500 137,975 137,975 -
Total Solid Waste Collection 1,195,063 1,203,128 1,195,845 7,283
Street Maintenance:
Personal services:
Executive salaries 56,469 56,469 56,469 - ~
Regular pay 256,591 256,591 252,08°0 4,503 `
Overtime pay 1,000 1,876 1,876 -
Holiday gifts 550 550 550 -
FICA 24,027 24,027 22,828 1,199
Pension-general employees 37,687 37,687 37,687 -
Health insurance 30,190 30,190 42,599 (12,409)
Life insurance 2,202 2,202 2,202 -
LTD insurance 4,164 4,164 4,164 - ,
Worker's compensation 23,480 23,480 23,480 -
Operating expenses:
Physical .exams 400 400 9 391
Other professional services 16,000 11,300 (6,725) 18,025
Uniform rental 2,500 2,500 2,591 (91)
Tree trimming 5,000 3,000 (485) 3,485
Electricity 50,000 53,600 53,586 14
1
Continued on the following page.
61
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Water & sewer $ 22,000 $ 23,100 $ 23,050 $ 50
Rental-equipment 750 750 452 298
R&M communication system 2,500 2,200 1,304 896
R&M street resurfacing 5,000 100 - 100
R&M street paving 200,000 199,600 195,873 3,727
R&M storm drainage system 10,000 7,750 4,282 3,468
Street striping 6,500 6,500 6,452 48
Shop tools & supplies 1,000 2,000 1,601 399
Irrigation supplies 5,000 4,750 4,837 (87)
Machinery & equipment supplies 4,000 4,000 3,818 182
Auto parts supplies 2,000 2,000 1,062 938
Street light supplies 1,000 1,400 1,169 231
Tires & tubes 1,000 1,000 968 32
Trees & sod 12,500 8,250 6,582 1,668
Fertilizers 4,000 3,500 2,015 1,485
Traffic control signs .13,500 13,500 13,195 305
Fences-alleys 6,600 7,100 7,080 20
Catch basin grates 3,000 3,000 2,560 440
Gas, oil and lubricants 7,800 8,850 8,824 26
Uniforms and shoes 800 800 766 34
Asphalt, shell and concrete 7,000 .7,000 7,014 (14)
Capital outlay:
Construction & major renovation - - (25,384) 25,384
Machinery and equipment 4,500 4,000 3,981 19
Total Street Maintenance .830,710 819,186 764,420 54,766
Mechanical Maintenance:
Personal services:
Regular pay 109,492 98,492 92,616 5,876
Overtime pay 1,000 1,000 1,000 -
Holiday gifts 200 200 200 -
FICA 8,453 6,853 6,828 25
Pension-general employees 13,259 13,259 13,259 -
Health insurance 9,820 9,820 13,856 (4,036)
Life insurance 767 767 767 -
LTD insurance 1,456 1,456 852 604
Worker's compensation 8,212 8,212 8,212 -
Operating expenses:
Uniform rental 1,000 1,000 923 77
Other contractual services 800 800 462 338
Telephone 600 290 - 290
Electricity 4,000 5,600 5,611 (11)
Water & sewer 1,600 1,600 1,555 45
Solid waste disposal 1,800 1,800 1,525 275
R&M building & grounds 6,800 6,800 6,781 19
Continued on the following page.
62
`T~ V>Q.LA~lE OF l~®~T>~ ~4~T M BEACH. I~'r~ORIDA '-~
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003 ,-
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
R&M machi_n_e_ry ~ equipment $ 2,000 $ 1,342 $ 1,113 $ 229
R&M communication system 600 600 538 62
Licenses & fees 200 130 - 130
Shop tools & supplies 5,000 5,600 5,484 116
Building maintenance supplies 1,000 1,000 967 33 r
Machinery & equipment supplies 500 800 690 110
Auto parts supplies 750 750 679 71
Tires & tubes 200 200 189 11
Chemicals 1,000 750 544 206
Custodial supplies 1,200 1,200 1,145 SS
Gas, oil & lubricants 1,300 1,820 1,816 4
Uniforms and shoes 250 250 142 108 `
Capital outlay:
Construction & major renovation - 2,700 1,893 807 ~
Automotive 56,700 - _ ~
Machinery and equipment 8,000 8,158 8,157 1 -
Total Mechanical Maintenance 247,959 1.83,249 177,804 5,445
Park Maintenance:
Personal services:
Regular pay 205,121- 205,121 205,121
Part-time pay 12,090 12,090 9,997 2,093
Overtime pay 6,000 6,000 4,716 1,284
Holiday gifts 475 475 47S -
FICA 17,077 17,077 16,740 337 ` ]
Pension-general employees 25,335 25,335 25,335 -
Health insurance 19,640 19,640 27,712 (8,072) ~
Life insurance 1,439 1,439 1,439 -
LTD insurance 2,728 2,728 2,728 -
Worker's compensation 16,291 .16,291 16,291 -
Operating expenses:
Physical exams 250 250 - 250
Other professional services 1,500 1,500 - 1 500
Uniform rental 1,800 1,800 1,677 ~ 123
Tree trimming 3,000 5,000 2,770 2,230
Electricity 3,500 4,070 4,062 8
Solid waste disposal 5,000 5,000 4,435 S65
Rental-equipment 500 S00 403 97
R&M marina 3,000 3,000 1,810 1,190
R&M PA & communication 900 900 939 (39) - ,
R&M streets, roads & paths 500 500 500
Printing & binding 375 37S - 37S
Licenses and fees 200 200 - .200
Shop tools ~i supplies 1,200 1,200 1,123 77 i
Building maintenance supplies 10,400 8,020 7,207 813 ~ ' j
Continued on the following page.
63
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Irrigation supplies $ 10,500 $ 9,530 $ 6,212 $ 3,318
Machinery & equipment supplies 5,000 5,360 5,353 7
Auto parts supplies 1,500 1,500 1,416 84
Tires & tubes 800 800 302 498
Trees & sod 10,000 13,500 13,287 213
Fertilizers 15,000 13,000 12,173 827
Sand/clay/shell/topsoil 6,000 8,000 5,766 2,234
Lime for ballfields 500 500 291 209
Chemicals 1,200 1,200 984 216
Gas, oil and lubricants 3,500 4,720 4,718 2
Uniforms and shoes 650 650 648 2
Capital outlay:
Construction & major renovation 50,000 12,000 - 12,000
Automotive - - 11,966 (11,966)
Machinery & equipment 20,400 2,900 2,625 275
Total Park Maintenance 463,371 412,171 401,221 10,950
Total public services 3,614,796 3,478,537 3,400,013 78,524
Leisure services:
Library:
Personal services:
Executive salaries 56,636 56,636 56,636 -
Regular pay 226,963 226,963 224,808 2,155
Part-time pay 70,184 52,224 52,224 -
Holiday gifts 650 650 575 75
FICA 27,062 27,062 25,888 1,174
Pension-general employees 34,032 34,032 34,032 -
Health insurance 16,116 16,116 22,740 (6,624)
Life insurance 1,993 1,993 1,993 -
LTD insurance 3,772 3,772 3,772 -
Worker's compensation 26,534 26,534 26,534 -
Operating expenses:
Physical exams 165 165 - 165
Other contractual services 900 900 775 125
Travel 1,367 667 632 35
Telephone 8,000 8,000 8,076 (76)
Electricity 15,000 19,360 19,380 (20)
Water & sewer 2,000 2,000 1,793 207
Solid waste disposal 600 600 - 600
Rental-equipment 2,650 2,150 2,036 114
Rental-film/exhibit 300 300 148 152
R&M building & grounds 1.,700 5,887 5,887 -
R&M windows 400 - - -
Continued on the following page.
64
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T>~ VrL,LAGE of 1®ToRTx PALIV>< ~EACI~.I~LO1~A r
Budgetary Comparison Schedule
General Fund .(Continued)
Year Ended September 30, 2003
Budgeted Aanounts Actual on Variance with
Bndgeta_ry Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
R&M carpet $ 1,400 $ - $ - $ -
R&M lights 250 - (5,048) 5,048 ~ J
R&M furniture & office equipment 1,250 150 80 70
R&M elevator 1,640 1,640 1,511 129
R&M PA & communication 200 200 - 200 r
R&M computer 2,000 1,500 1,295 205
Printing & binding 3,700 3,160 2,668 492
Employee relations 800 800 490 310
Licenses & fees 260 260 2,217. (1,957)
Office supplies 4,500 4,500 4,489 11
Computer supplies 1,400 1,400 1,367 33
Building maintenance supplies 1,000 988 980 8
Furniture maintenance supplies 500 500 376 124
Irrigation supplies 100 100 76 24
Machinery & equipment supplies 1,500 398 300 98
Fertilizers 165 165 - 165
Chemicals 175 175 51 124
Custodial supplies 1,500 1,500 1,443 57
Photocopies & reproducing 1,000 1,000 539 461
Refreshments & supplies 700 700 469 231
Membership & dues 545 545 480 65 `
Conference & seminars 300 300 80 220
Training & education 600 600 550 50
Library contribution usage - - 28,085 (28,085)
Capital outlay:
Computer hardware & software - - 3,720 (3,720)
Construction & major renovation 8,000 4,500 4,450 50 ~ ~
OfiicE equiprnert 800 - -
Furniture & fixtures 8,100 2,217 2,180 37
Books & publications 55,000 55,100 55,107 (7)
Audio book collection 3,000 3,000 2,870 130
Video cassette 5,000 5,000 4,978 22
Total Library 602,409 576,409 603,732 (27,323)
Recreation:
.
Personal services:
Executive salaries 60,045 60,045 60,045 -
Regularpay 127,110 127,110 125,589 1,521
Part-time pay 89,479 102,379 102,379 -
Overtime pay 10,000 11,000 10,588 412
Holiday gifts 525 525 525 -
FICA 21,927 21,927 21,927 -
Pension-general employees 23,658 23,658 23,658 -
Health insurance 11,787 11,787 16,632 (4,845)
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Continued on the following page.
65
~-
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Bud eted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Life insurance $ 1,315 $ 1,315 $ 1,315 $ -
LTD insurance 2,489 2,489 2,489 -
Worker's compensation 20,748 20,748 20,748 -
Operating expenses:
Physical exams 165 165 - 165
Travel 2,100 1,899 1,804 95
Telephone 12,500 16,701 16,757 (56)
.Electricity 80,000 72,800 72,745 55
Water and sewer 12,000 11,000 11,016 (16)
Solid waste disposal 2,000 2,000 1,688 312
R&M building & grounds 10,000 10,050 10,035 15
R&1VI furniture & equipment 500 500 405 95
R&M PA & communication 1,000 250 150 100
Printing & binding 450 50 - 50
Employee relations 900 550 519 31
Advertising 350 350 268 82
Trophies, awards & prizes 500 500 209 291
Office supplies 2,500 3,500 3,448 52
Photo supplies 300 800 389 411
Building maintenance supplies 11,800 11,920 11,917 3
Furniture maintenance supplies 270 100 - 100
Machinery & equipment supplies 2,400 .150 60 90
Auto parts supplies 500 500 330 170
Nets & tapes 500 500 321 179
Playground supplies 3,000 2,900 2,864 36
Arts & crafts supplies 2,500 2,900 2,796 104
Medical & safety supplies 500 100 165 (65)
Custodial supplies 7,500 5,250 5,247 3
Gas, oil & lubricants 1,200 1,950 1,551 399
Refreshments & supplies 350 350 99 251
Uniforms & shoes 1,000 600 569 31
Membership & dues 945 945 783 162
Conference & seminars 1,600 340 184 156
Training & education 1,000 210 209 I
Capital outlay:
Computer hardware & software 13,000 9,425 11,284 (1,859)
Playground & outside equipment 37,180 12,540 12,536 4
Furniture & fixtures 1,500 1,215 1,215 -
Machinery & equipment 50,000 35,600 35,587 13
Total Recreation 631,093 591,593 593,045 (1,452)
Special Events:
Operating expenses:
Music & talent 8,350 9,350 9,325 25
Continued on the following page.
66
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a
T~ VILLAGE of l~oRTg PALM ~EACld. FLORIDA r
Budgetary Comparison Schedule
General Fund (Continued)
Year Ended September 30, 2003
Budgeted Amounts Actual on Variance with
Budgetary Final Budget
Basis Positive
Original Final (See Note 1) (Negative)
Rental-equipment $ 4,000 $ 3,000 $ 2,130 $ 870
Public events 50,000 43,459 42,032 1,427
Employees' summer outing 6,000 6,000 5,267 733
Furniture & fixture supplies 1,390 1,390 495 895
Refreshments & supplies 1,500 1,500 1,302 198 r
Capital outlay:
Playground & outside
equipment 3,000 3,000 2,998 2 ` j
Furniture & fixtures 7,500 5,500 4,557 943 `
Machinery and equipment 5,600 4,400 4,364 36
Total Special Events 87,340 77,599 72,470 5,129
Total leisure services 1,320,842 1,245,601 1,269,247 (23,646)
Other:
Council contingency:
Village Manager contingency 10,000 - - -
Council contingency 100,000 39,400 11,500 27,900
Other debt expense reserve - - 2,500 (2,500) `
Insurance:
Reserve-group health 300,000 658,000 658,000 -
Benefits and awards:
Reserve-miscellaneous 20,000 20,000 6,012 13,988
Reserve-raises and benefits - 521,500 381,310 140,190
Reserve-accrued benefits 60,000 60,000 46,170 13,830 ~ 1
.Safety and attendance J
awards 10,000 - - -
Perforn-~ance raises 195,000 195,000 195,000 - i I
Total other 695,000 1,493,900 1,300,492 193,408.
Debt service:
Debt service -principal and interest 1,270,000 1,098,000 1,076,072 21,928
L
Total expenditures 13,565,749 13,862,838 13,753,631 109,207
Other financing uses:
Transfer to capital projects fund - 23,100 23,100 -
Total charges to
appropriations 13,565,749 13,885,938 13,776,731 109,207
Budgetary fund balance,
September 30 $ - $ - $ 667,442 $ 667,442
See notes to required supplementary information.
67
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Schedule of Funding Progress -General Employees Retirement Fund
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
10/1/1997 $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%
10/1/2001 6,312,447 8,150,125 1,837,678 77.5% 3,127,313 58.8%
10/1/2002 6,193,676 8,594;442 2,400,766 72.1% 3,076,493 78.0%
See notes to required supplementary information.
68
i
T~ VILLAGE of I®ToRTR Par.,lo~ BEACH. FLOR~~
Schedule of
Employer and State Contributions
Annual
Fear Ended Required Employer State Percentage r
September 30, Contribution Contribution Contribution Contributed
General Employees Retirement Fund
1998 $ 224,810 $ 250,721 n/a 111.5%
1999 214,323 227,112 n/a 106.0%
2000 292,°066 372,744 n/a 127.3%
2001 .415,152 447,128 n/a 107.7%
2002 430,411 467,750 n/a 108.7%
2003 502,855 503,220 n/a 100.1%
Fire and Police Retirement Fund
1998 $ 118,643 $ 56,672 $ 92,463 125.7%
1999 182,286 110,966 79,215 104.3%
2000 97,135 53,067 73,123 129.9%
2001 85,866 25,607 77,227 119.8% r
2002 130,305 57,825 88,452 112.3%
2003 323,352 235,339 159,943 122.2%
* Annual required contributions for the Fire and Police Retirement Fund include contributions from the State
of Florida.
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See notes to required supplementary information.
69
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2003
NOTE 1. BUDGETARY DATA
As required by GASB Statement No. 34, a budgetary comparison schedule is presented for the
general fund. Budgetary comparison schedules are not required, and have not been presented for
capital projects funds or enterprise funds.
The budget for the general fund is adopted on an accounting basis that differs from generally
accepted accounting principles (GAAP) because it includes open encumbrances as expenditures.
Differences between budgetary inflows and outflows and GAAP revenues and expenditures are as
follows:
General Fund
Sources/Inflows of resources:
Actual amounts (budgetary basis) "available for appropriations" from the
budgetary comparison schedule $ 14,444,173
Differences -budget to GAAP:
The fund balance at the beginning of the year is a budgetary resource but is
not acurrent-year revenue for financial reporting purposes (2,30.6,067)
Certain miscellaneous revenues are not considered to be budgetary
resources but are regarded as revenue for financial reporting purposes 93,878
Total revenues as reported on the statement of revenues, expenditures and
changes in fund balances -governmental funds $ 12,231,984
Uses/Outflows of resources:
Actual amounts (budgetary basis) "total charges to appropriations" from the
budgetary comparison schedule $ 13,776,731
Differences -budget to GAAP:
Encumbrances for supplies and equipment ordered but not received are
reported in the year the order is placed for budgetary purposes, but in the
year the supplies and equipment are received for financial reporting
purposes. 295,953
Transfers to other funds are outflows of budgetary resources but are not
expenditures for financial reporting purposes (23,100)
Total expenditures, as reported on the statement of revenues, expenditures,
and changes in fund balances -governmental funds $ 14,049,584
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~IIE ~ILLAGE ®F ~®RTH IDALM EACH, FL®RIIDA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2003
NOTE 2. STEWARDSFIIP, COMPLIANCE AND ACCOUNTABILITY
Unencumbered appropriations lapse at fiscal year end. Encumbrances at year end are carried
forward to the next year. During the year, several supplementary appropriations were necessary,
For the year ended September 30, 2003, several expenditures exceeded appropriations in the general
fund. They are as follows:
Expenditures for Capital Outlay -Computer Hardware and Software in Village Manager and in
Finance; and Automotive in Fire Prevention and in Park Maintenance were not budgeted
because they were funded through issuance of bank loans.
Expenditures for Outside Services Pay and Donations in Law Enforcement exceeded r
appropriations because these are not budgeted items.
r~ ~
Expenditures for Library Contribution Usage exceeded appropriations because this is not a
budgeted item.
Expenditures for Health Insurance in all departments exceeded appropriations due to increases
in health care costs.
NOTE 3. PENSION PLANS `
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: l
General Fire
Employees and Police
Valuation date 10/1/02 10/1/02
Actuarial cost method Frozen Entry Age .Aggregate l
Asset valuation method 5-year 5-year
smoothed smoothed
market market
Actuarial assumptions:
Investment rate of return (including inflation) 8.5% /year up to retirement,
5.25% thereafter 8% /year '-
Salary increases (including inflation) 5.5% /year 6% /year
Inflation 4% /year 4% /year
Post retirement benefit increases 3% /year for 3% /year
those who retired
before 2/1/82
L I 1
71
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T>~ V>~,LAGE of ~ToRT~ ~ALrr~ ~iEACH, F'L®RIDA
Combining Statement of
Net Assets -Fiduciary Funds
September 30, 2003
Employee Retirement Funds
Fire and Total
General Police Employee
Employees Officers Retirement
Pension Pension Funds
Assets
Cash and cash equivalents $ 483,221 $ 672,895 $ 1,156,116 r j
Investments: 1
Common stock 3,857,855 3,320,573 7,178,428
U.S. Government securities 1,008 2,162,256 2,163,264
Corporate bonds 2,420,906 551,917 2,972,823
Interest receivable - 28,232 28,232
Total assets $ 6,762,990 $ 6,735,873 $ 13,498,863
Liabilities
Accounts payable $ 3,978 $ 4,824 $ 8,802 -
Due to others _ _ _
Total liabilities $ 3,978 $ 4,824 $ 8,802
Net Assets ` 1
Held in trust for pension benefits $ 6,759,012 $ 6;731,049 $ 13,490,061 )
Total net assets $ 6,759,012 $ 6,731,049 $ 13,490,061
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Agency Funds
Manatee Northlake Total
Protection Boulevard Agency
Agency Task Force Funds
$ 228,894 $ 17,259 $ 246,153
$ 22~,~94 $ 17,259 $ 246,153
$ - $ - $ -
228,894 17,259 246,153
$ 228,894 $ 17,259 $ 246,153
$ - $ - $ -
$ - $ - ' $ -
73
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'I'1~ V~LAGE OF 1~TORT>~ PaLly~ ~EACIi. FLORIDA
Combining Statement of Changes in Net Assets
Employee Retirement Funds
Year Ended September 30, 2003
Fire and Total
General Police Employee
Employees Officers Retirement r
Pension Pension Funds
Additions:
Contributions:
Employer $ 503,220 $ 235,339 $ 738,559
State of Florida - 159,943 159,943
Plan member 105,077 43,611 148,688 r
Total contributions 608,297 438,893 1,047,190
Investment income: `
Interest 3,846 171,747 175,593
Dividends 6,127 45,673 51,800
Net appreciation in fair value of investments 639,323 691,198 1,330,521
Investment expense (43,868) (28,352) (72,220) JJ
Total investment income 605,428 880,266 1,485,694
Total additions 1,213,725 1,319,159 2,532,884 r l
Deductions: J
Administration 17,663 48,501 66,164
Benefits 206,361 17,680 224,041
Total deductions 224,024 66,181 290,205
Net increase 989,701 1,252,978 2,242,679 _ ~ ~
Net assets held in trust for pension benefits,
beginning of year 5,769,311 5,478,071 11,247,382
1~Tet assets held in trust for pension
benefits, end of year $ 6,759,012 $ 6,731,049 $ 13,490,061 l
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74
THE VILLAGE OF NORTH PALM BEACH. FLORIDA
Combining Statement of Changes in Assets and Liabilities
Agency Funds
Year Ended September 30, 2003
Balance Balance
October 1, September 30,
2002 Additions Deletions 2003
Manatee Protection Agency
Assets:
Cash and cash equivalents $ 225,516 $ 3,378 $ - $ 228,894
Liabilities:
Due to others $ 225,516 $ 3,378 $ - $ 228,894
Northlake Boulevard Task Force
Assets:
Cash and cash equivalents $ 7,825 $ 20,184 $10,750 $ 17,259
Liabilities;
Due to others $ 7,825 $ 20,184 $10,750 $ 17,259
Totals -All Agency Funds
Assets:
Cash and cash equivalents $ 233,341 $ 23,562 $10,750 $ 246,153
Liabilities
Due to others $ 233,341 $ 23,562 $10,750 $ 246,153
75
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SHE VILLAGE of 10ToI~Tx PALM BEACH. FLOxIDA
Government-wide Expenses by Function
Last Ten Fiscal Years ~1~
Fiscal Year
Ended Total General Public Public Leisure
September 30, Expenses Government safety services services
1994 $ - $ - $ - $ - $ -
1995 - - - - -
1996 - - - - - r
1997 - - - - -
1998 - - - - -
1999 - - - - -
2000 - - - - -
2001 - - - - -
2002 15,134,186 1,474,645 5,179,278 4,240,543 1,464,072
2003 15,804,807 2,781,333 5,195,338 3,482,975 1,539,771 -
(I) Information not available.
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76
Table I
Interest on
Long-term Country
Debt Club
$ - $ -
173,488 2,602,160
128,507 2,676,883
77
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T'l~ V>Q.~~GE of I~ToRTi~ Pa~,~ ~Eacl~e ~'l~,o~~
Government-wide Revenues
Last Ten Fiscal Years (ll ~
Program Revenues
Fiscal Year Charges ®perating Capital
Ended Total for Grants and Grants and
September 30, Revenue services Contributions Contributions
1994 $ - $ - $ - $ -
1995 - -
1996 - - - -
1997 - - - -
1998 - - - -
1999 - - - -
2000 - - - -
2001 - - - -
2002 13,548,953 3,820,786 94,252 92,461
2003 14,877,203 4,013,522 82,134 112,560
Information not available.
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78
Table II
General Revenues
Unrestricted Unrestricted
Grants and Investment
Taxes Contributions Earnings Miscellaneous
$ - $ - $ - $ -
9,054,515 - 145,313 341,626
10,158,648 276,302 79,609 154,428
79
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T1~ PILLAGE of l~®RTH Pa>=,1vI BEACH. FL®R~~ r
General Governmental Expenditures by Function
Last Ten Fiscal Years
r
Fiscal General Public Public Leisure Capital
Year Government Safety Services Services Outlay
1994 $ 868,031 $ 2,191,033 $ 2,127,065 $ 670,643 $ 270,946
1995 866,103 2,378,817 2,223,340 669,058 422,679
1996 948,997 2,705,393 2,412,502 690,046 527,699
1997 928,801 2,759,664 2,439,231 712,690 856,302
1998 947,839 2,865,117 2,425,110 791,373 332,324
1999 1,172,478 2,944,489 2,491,317 856,945 739,316
2000 1,211,403 3,191,976 2,806,141 991,603 727,258 {
2001 1,220,944 3,701,807 2,918,996 1,038,304 433,970 r
2002 1,344,492 4,263,883 3,265,242 1,081,833 1,085,684
2003 1,360,072 4,758,982 3,285,603 1,216,156 1,054,207
i
Note: The above expenditures are for the general fund.
rl III
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Table III
Debt
Service Other Total
$ 29,943 $ 144,178 $6,301,839
35,688 188;614 6,784,299
41,696 138,020 7,464,353
109,778 253,000 8,059,466
79,930 194,306 7,635,999
146,317 569,038 8,919,900
765,297 442,494 10,136,172
782,190 303,178 10,399,389
1,025,047 434,199 12,500,380
1,076,072 1,298,492 14,049,5 84
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'T~ V~,~~~~ ITT®~T1~ Pa>Jly~ BEACH. FL®x~a
General Governmental Revenues by Source
Last Ten Fiscal Years
d~icenses Charges r
Fiscal and Inter- for
Year Taxes Permits governmental Services
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
2002 8,197,886 648,873 1,267,331 521,660 f
2003 9,292,822 686,548 1,280,228 665,496
Note: The above revenues are for the general fund. r
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Table IV
Fines
and
Forfeitures Interest Miscellaneous Total
$ 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
168,995 85,239 123,574 11,013,558
113,391 54,554 138,945 12,231,984
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T~ PILLAGE l~®1tT~ ~ELI.li~ ~EAC~i. FL®>~a Table v
Property Tax Levies and Collections
Last Ten Fiscal Years
Percent Delinquent Total Percent
Fiscal Total Current Tax of Levy Tax Tax Co11_ectcd
Xear Tax Levy Collections Collected Collections Collections To Tax Levy
1994 $ 3,454,871 $ 3,335,241 95.75% $ 984 $ 3,336,225 95.97%
1995 3,780,663 3,646,758 96.54% 78 3,646,836 96.57% r~
1996 3,704,613 3,577,517 96.46% 6,187 3,583,704 96.46%
1997 3,701,075 3,574,562 96.57% 4,379 3,578,941 96.74%
1998 4,105,193 3,961,574 96.50% 5,861 3,967,435 96.64% ~ i
1999 4,327,943 4,166,035 96.26% 6,721 4,172,756 96.41% J!
2000 4,512,027 4,335,668 96.09% 23,074 4,358,742 96.60%
2001 5,196,021 5,013,269 96.48% 4,687 5,017,956 96.57%
2002 5,562,239 5,357,206 96.31% 12,175 5,369,381 96.53%
2003 6,597,909 6,359,478 96.39% 5,522 6,365,000 96.47%
Source: Palm Beach County Property Appraiser
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THE VILLAGE OF NORTH PALM BEACH. FLORIDA Table VI
Assessed Yalue of Tcxxable Property
Last Ten Fiscal Years
Assessed Values
Fiscal Real Personal
Year Property _ Property Total
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 40,169,760 901,3 83,853
2002 950,465,573 42,791,419 993,256,992
2003 1,093,294,027 44,276,499 1,137,570,526
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 1st of the preceding calendar year.
Source: Palm Beach County Property Appraiser
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T~ V~~~c~ ®F 10T®RT13 I'Al_,1vi BEACH. TL®RIDA Table VII ,
Property Tax Rates -Direct and Overlapping Governments
Last Ten Fiscal Years
(Per $1, 000 of the Assessed Value)
i
Village Palm Beach
of North County
Fiscal Palm Special School Palm Beach
Year Beach Districts District County Total
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 21.715
2001 5.75 2.263 8.918 4.936 21.867
2002 5.60 2.456 5.948 4.935 21.939
2003 5.80 2.488 8.779 4.808 21.875 r
Source: Palm Beach County Property Appraiser. ` j
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THE VILLAGE OF NORTH PALM BEACH. FLORIDA Table VIII
Computation of Direct and Overlapping Bonded Debt
General Obligation Bonds
September 30, 2003
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 292,745,000 1.99% S,82S,626
Palm Beach County
School District 174,635,000 1.99% 3,475,237
Total $ 467,380,000 $ 9,300,863
Estimated based on 2002 Ratio of Assessed Taxable Values
Source: Palm Beach County Property Appraiser
School Board of Palm Beach County, Finance Department
Village of North Palm Beach
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THE VILLAGE OF NORTH PALM BEACII. FLORIDA Table IX
Computation of
Legal Debt Margin
September 30, 2003
The Village Charter and the Constitution of the State of Florida, Florida State Statute 200.181, do not provide
fora legal debt limit.
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Tl~ ~II,LAGE ®F 10T®RTl3 PALM BEACH. Fl;®~DA
Debt Related Statistics 1
Schedule of Revenue Bond Coverage
General and Enterprise Funds F
Last Ten Fiscal Years
Net
Revenue
Available
Fiscal Gross Expenditures/ For Debt
Year Revenue Expenses cl) service
1994 $ 9,189,523 $8,415,414 $ 774,109
1995 10,167,560 8,829,772 1,337,788-
r.
1996 * * *
1997 *
1998 * * * r
1999 * *
2000 * * *
2001 * * *
2002 * * *
2003 * *
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. `-1
* Revenue bonds were paid in full in 1995.
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Table X
Debt Service Requirements
Principal Interest Total Coverage
$ 150,000 $ 15,562 $ 165,562 4.68
150,000 5,250 155,250 8.62
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Tl~ V~.L~G~ of l~ToRTg FALL ~EAC>B. FLORA Table ~
Property Yalue, Construction, and Bank Deposits i
Last Ten Fiscal Years
Commercial Residential
Property Value tl) Construction Construction Bank
Fiscal Deposits t2)
Year Commercial Residential Value Value (in thousands)
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 f
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 4,394,857 28,219,296 12,711,003
2001 122,793,250 745,237,484 8,942,094 36,600,946 12,927,182
2002 124,216,202 823,286,154 2,218,598 11,234,443 13,841,347
2003 128,216,552 963,091,506 225,000 9,355,204 14,484,675 ` ]
(i) Estimated
(Z) Data as of September 30 of the preceding year.
Sources: Village of North Palm Beach
Palm Beach County Property Appraiser Office
Florida Bankers Association (all of Palm Beach County)
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THE VILLAGE OF NORTH PALM BEACH. FLORIDA Table XII
Principal Taxpayers
January 1, 2003
Percentage
2003 of Total
Assessed Assessed
Taxpayer Valuation Valuation
Olen Residential Realty $ 17,399,486 1.53%
Sanctuary Bay Trust Corporation 13,120,685 1.15%
Intervest Crystal Tree 9,873,474 0.87%
North Palm Properties Limited 8,600,000 0.76%
Greater Florida Investment Co. 5,840,000 0.51%
Transcontinental Atrium, Inc. 4,590,000 0.40%
Roschman, M. Elaine TR 4,100,000 0.36%
WCI Communities, Inc. 4,009,300 0.35%
Pavilion Office Center 3,240,000 0.28%
Old Port Cove Dev. 3,118,107 0.27%
Morse, Edward J., Inc. 2,852,061 0.25%
$ 76,743,113 6.73%
Source: Palm Beach County Property Appraiser.
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THE ~TII.LAGE OF ~®RTH FALM ~I+ ACH. FLORIDA Table XIII
Miscellaneous Statistics
September 30, 2003
Date of incorporation: August 13, 1956
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 r
Number of firemen and ofEcers 8
Police/EMS Protection
Number of stations 2
Number of policemen and officers 35
Number of EMS officers 13
Building Permits
Building permits -new 48
Building pernuts -additions 176 `
Recreation/Culture
Number of parks 4 ~ )
Public tennis courts 4 l
Number of marinas 1
Number of libraries 1
Number of volumes 47,960
Country Club 1
Golf course 1
Driving range 1
Swimming pool 1
Tennis courts 10
Employees 264
Source: Village of North Palm Beach
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~ ~ Rachlin Cohen & Holtz ur
• ~ Phillips Point East ToR~er ¦ 777 South Flagler Drive ¦ Suite 150 ¦ West Palm Beach, Florida 33401
• . •
Phone 561.833.0002 ¦ Faz 561.833.3235 ¦ www.rehcpa.com
Report of Independent Certified Public Accountants on Compliance and
on Internal Control Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited the basic fmancial statements of the Village of North Palm Beach, Florida, as of and for
the year ended September 30, 2003, and have issued our report thereon dated January 13, 2004. We
conducted our audit in accordance with auditing standards generally accepted in the United States and the
standards applicable to fmancial 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
financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and agreements, noncompliance with which could have a direct
and material effect on the determination of fmancial 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 expressing
our opinions on the fmancial 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 consider to be material weaknesses.
However, we noted other matters involving the internal control over fmancial reporting that we have
reported to management of the Village of North Palm Beach, Florida in a separate letter dated January 13,
2004.
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.
West Palm Beach, Florida
January 13, 2004
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MIAMI ¦ FORT LAUDERDALE ¦ WEST PALM. BEACH ¦ STUART
An Independent Me~nGer of Bakei° Tlly I aterncrtional
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~ Rachlin Cohen & Holtz ur
• I Phillips Point East Tower ¦ 777 South Flagler Drive ¦ Suite 150 ¦ West Palm Beach, Florida 33401
• -. •
Phone 561.833.0002 ¦ Fax 561.833.3235 ¦ www.rchcpa.com
Management Letter in Accordance with the Rules
of the Auditor General of the State of Florida
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited the basic financial statements of the Village of North Palm Beach, Florida, (the Village)
as of and for the year ended September 30, 2003, and have issued our report thereon dated January 13,
2004. We conducted our audit in accordance with auditing standards generally accepted in the United
States and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. We have issued our Report of Independent Certified
Public Accountants on .Compliance and Internal Control over Financial Reporting. Disclosures in that
report, which is dated January 13, 2004, should be considered in conjunction with this management letter.
In connection with our audit of the basic financial statements of the Village for the year ended September
30, 2003, we report the following in accordance with Chapter 10.550, Rules of the Auditor General, Local
Governmental Entity Audits which requires that this report specifically address, but not be limited to, the
matters outlined in Rule 10.554(1)(g):
1. No inaccuracies, shortages, defalcations, fraud, and violations of laws, rules, regulations and
contractual provisions were reported in the preceding annual fmancial audit.
2. The Village, during fiscal year 2003, was not in a state of fmancial emergency as defined by
Florida Statute, Section 218.503(1). The Village had no deficit fund balances.
3. The Village has complied with Section 218.415, Florida Statutes regarding the investment of public
funds, except as noted below.
4. Recommendations to improve the Village's present financial management and accounting
procedures are presented below.
5. Recommendations made in the preceding financial audit have been implemented, except as noted
below.
6. During the course of our audit, nothing came to our attention that caused us to believe that the
Village:
a. Was in violation of any laws, rules, regulations or contractual provisions.
b. Made any illegal or improper expenditures that may or may not materially affect the fmancial
statements.
c. Had improper or inadequate accounting procedures, other than those recommendations noted
below to improve the Village's administrative and accounting controls.
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MIAMI ¦ FORT LAUDERDALE ¦ WEST PALM BEACH ¦ STUART
Aga I zdepe~2dent MemGer of Baker Till~~ Inter~zationctl
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The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Page Two
d. Failed to properly record financial transactions, which could have a material effect on the Village's
basic financial statements.
e. Had other inaccuracies, shortages, defalcations or instances of fraud and fraud related matters.
7. The annual financial report for the year ended September 30, 2003, has been filed with the State of
Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, and was in
agreement with the audited financial statements of the same period.
8. The Village of North Palm Beach, Florida, was incorporated by Chapter 165, Florida Statutes.
9. During the course of our audit, we applied financial condition assessment procedures pursuant to Rule
10.566(8). It is management's responsibility to monitor the Village's financial condition, and our
financial condition assessment, which was performed as of the Village's fiscal year end, was based on
representations made by management and the review of financial information provided by the Village.
There were no findings regarding deteriorating financial conditions.
CURRENT YEAR COMMENTS AND RECOMMENDATIONS
CONTROLS OVER APPROVAL OF BUILDING PERMITS
FINDING 03-1
Criteria
An effective system of internal controls includes procedures which require that transactions be approved by a
responsible official and that the approval be documented in writing.
Condition
In a test of six building permits, none of the six had been signed by the Building Official. Two of the permits had
been signed by another individual who admitted to signing the Building Official's name. The other four permits
had no signature or initials but were instead stamped "Lot File Copy".
Perspective
Adequate evidence of approval was not apparent on any of the building permits examined.
Effect
No accountability over the building permit process has been established
Recommendation
We recommend that the Village strengthen controls over building permits by:
• Requiring that approval of permits be in the form of signature by the Building Official, or a named alternate
official, in the Building Official's absence
• Prohibiting any person from signing another person's name on government documents
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The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Page Three
Management's response
The Public Services Department will review the procedures and will implement the controls as recommended.
STATUS OF PRIOR YEARS' COMMENTS
FINDING 01-02
Country Club Operations
Criteria
Proprietary funds are used to account for governmental activities that are similar to activities that may be
performed 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 -current year
During the course of our audit, we utilize a variety of methods to identify the financial condition of the
organization. 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. As part of our 2003 audit, we updated financial indicators
that had been calculated in the prior year.
At September 30, 2003, the financial indicators continue to demonstrate a deteriorating financial condition for
the country club operation. Our observations on this condition are as follows:
1. There has been a continuous decline in net assets for the past five years. Net assets is the cumulative
amount by which revenues and operating transfers from other funds have exceeded expenses.
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. There were operating losses for four of the past five years. This may result in a reduction of the
Village's ability to withstand financial emergencies and/or the ability to fund major expenses or capital
purchases without having to borrow.
4. There has been a negative working capital position for the last four years. At September 30, 20b3, the
Country Club's liquid assets were $169,406. The average monthly cash requirement for operations is
$203,000.
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The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Page Four
2003 2002 2001
Financial Indicator #1
Net Assets (in constant dollars) $ 1,912,197 $ 1,974,286 $ 2,044,028
Percentage Decrease -3.14% -3.41% -5.54%
Financial Indicator #2
Cash and Investments $ 128,924 $ 156,020 $ 114,861
Current Liabilities 324,499 390,171 247,324
.40:1.00 .40:1.00 .46:1.00
Financial Indicator #3
Operating Income (Loss) $ (22,146) $ 1,973 $ (65,883)
Operating Revenues 2,631,509 2,570,649 2,492,894
-0.84% 0.08% -2.60%
Financial Indicator #4
Net assets (in constant dollars) $ 1,912,197 $ 1,974,286 $ 2,044,028
Total Operating Revenues 2,631,509 2,570,649 2,492,894
73% 77% 82%
Financial Indicator #5
Net Working Capital (Deficiency) $ (122,487) $ (140,018) $ (205,884)
Percentage IncreaselDecrease 12% 32% 39%
Perspective
The financial condition of the enterprise fund may require the general fund to subsidize operations and may
prevent the ability to finance needed improvements.
Recommendation
We continue to recommend that management:
1. Continue to review the revenue structures to determine stability, equity, efficiency and capacity to
finance operations.
2. Utilize long-term financial plans that include revenue and expenditure trend studies, capital, and debt
management plans.
Management Response
Management will continued working on this recommendation.
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The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Page Five
This management letter is intended solely for the information and use of the Village of North Palm Beach,
Florida's management, and the State of Florida Office of the Auditor General, and is not intended to be and
should not be®®us~~ed by anyone other than these specified parties.
j~dL'cy~C%~Gt C~ ~/7a2~~ G ~ i°
West Palm Beach, Florida
January 13, 2004
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