2014 CAFR■
THE VILLAGE
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NORTH PALM BEA4
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The Village of
North Palm Beach, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2014
Prepared by:
Finance Department
Samia Janina
Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letterof Transmittal ...................................................................................................... ............................... i
PrincipalVillage Officials ......................................................................................... ............................... vii
OrganizationalStructure ............................................................................................ ............................... viii
GFOA Certificate of Achievement for Excellence in Financial Reporting .................... .............................ix
FINANCIAL SECTION
IndependentAuditors' Report ........................................................................................ ............................... I
Management's Discussion and Analysis ......................................................................... ..............................4
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statementof Net Position ........................................................................................ .............................14
Statementof Activities ............................................................................................ .............................15
Fund Financial Statements:
Balance Sheet - Governmental Funds ..................................................................... .............................17
Reconciliation of the Balance Sheet — Governmental Funds
to the Statement of Net Position ............................................ ...............................
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds .................................. ...............................
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities
..........................18
..........................19
.............................
Statement of Net Position - Proprietary Fund ................................................ ...............................
.....20
.....21
Statement of Revenues, Expenses, and Changes in Net
Position- Proprietary Fund ............................................................................... .............................22
Statement of Cash Flows - Proprietary Fund .......................................................... .............................23
Statement of Fiduciary Net Position - Fiduciary Funds .......................................... .............................24
Statement of Changes in Fiduciary Net Position — Fiduciary Funds ....................... .............................25
Notes to the Basic Financial Statements ........................................................................ .............................26
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress- Other Postemployment Benefits ............................ .............................67
Schedule of Changes in Net Pension Liability — General Employees Retirement Fund .......................68
Schedule of Changes in Net Pension Liability — Fire and Police Retirement Fund . .............................69
Schedules Contributions and Investment Returns — Retirement Funds .................. .............................70
Notes to the Schedule of Contributions ................................................................... .............................71
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund .................................................................... .............................72
Notes to the Budgetary Required Supplementary Information ............................... .............................73
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
TABLE OF CONTENTS
(Continued)
OTHER SUPPLEMENTARY INFORMATION:
Schedule of Departmental Expenditures— Budget and Actual — General Fund ....... .............................74
Combining Balance Sheet — Nonmajor Governmental Funds ................................. .............................77
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
NonmajorGovernmental Funds ........................................................................... .............................78
Combining Statement of Net Position - Fiduciary Funds ....................................... .............................79
Combining Statement of Changes in Fiduciary Net Position - Employee Retirement Funds ..............80
Combining Statement of Agency Net Position ....................................................... .............................81
Combining Schedule of Changes in Agency Net Position ....................................... .............................82
Schedule of Revenues and Departmental Expenses —
Budget and Actual — Country Club Fund — Budgetary Basis ............................... .............................83
STATISTICAL SECTION
NetPosition by Component .................................................................................... .............................84
Changesin Net Position .......................................................................................... .............................85
Fund Balances, Governmental Funds ...................................................................... .............................87
Changes in Fund Balances, Governmental Funds ................................................... .............................88
Net Assessed Value and Estimated Actual Value of Taxable Property .................. .............................90
Property Tax Rates - Direct and Overlapping Governments .................................... .............................91
Principal Property Taxpayers .................................................................................. .............................92
Property Tax Levies and Collections ...................................................................... .............................93
Ratios of Outstanding Debt by Type ........................................................................ .............................94
Direct and Overlapping Governmental Activities Debt ........................................... .............................95
Pledged- Revenue Coverage ..................................................................................... .............................96
Demographic and Economic Statistics ..................................................................... .............................97
PrincipalEmployers ................................................................................................ .............................98
Full -Time Equivalent Village Government Employees by Function ....................... .............................99
Operating Indicators by Function/Program ............................. ............................... ............................100
Capital Asset Statistics by Function/Program .......................... ............................... ............................101
REQUIRED REPORTS
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .... ............................102
Management Letter in Accordance with the Rules of the Auditor General of the
Stateof Florida .................................................................... ............................... ............................104
Independent Accountant's Report on compliance with
Section 218.415, Florida Statutes ......................................... ............................... ............................107
INTRODUCTORY SECTION
March 26, 2015
THE VILLAGE OF
NORTH PALM BEACH
"THE BEST PLACE TO LIVE UNDER THE SUN"
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, 2014.
This report is published to provide the Village Council, Village staff, our citizens, our lenders, and other
interested parties with detailed information concerning the financial condition and activities of the
Village government. 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 are accurate in all material respects, and
are organized in a manner designed to fairly present the financial position and results of operations of
the Village as measured by the financial 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 financial affairs
have been included.
THE REPORT
Nowlen, Holt & Miner, P.A., Certified Public Accountants, have issued an unmodified ( "clean ") opinion
on the Village of North Palm Beach's financial statements for the year ended September 30, 2014. The
independent auditor's report is located at the front of the financial section of this report.
Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report
and provides a narrative, overview, and analysis of the basic financial statements. The MD &A
complements this letter of transmittal and should be read in conjunction with it.
The CAFR's role is to assist in making economic, social, and political decisions and to assist in
assessing accountability to the citizenry by:
• comparing actual financial results with the legally adopted budget, where appropriate;
• assessing financial condition and results of operations;
• assisting in determining compliance with finance related laws, rules and regulations;
• assisting in evaluating the efficiency and effectiveness of Village operations.
501 U.S. Highway 1, North Palm Beach, FL 33408 -4902 * (561) 841 -3380 * Fax (561) 848 -3344
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 12,177, 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 abundant
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
to two -year overlapping terms. The Mayor is selected by majority vote of the Council and serves for a
term of one year. Day to day affairs of the Village are under the leadership of the Village Manager who
is appointed by the Council.
FINANCIAL DATA
Financial Reporting System and Budgetary Controls
The Village's financial records for its general governmental operations are maintained on the modified
accrual basis, which means that revenues are recorded when available and measurable, and
expenditures are reported when goods and services are received and the related liabilities are incurred.
Financial reporting for its Enterprise Fund (i.e., the Country Club operation) is presented using the full
accrual basis of accounting required by GAAP for its annual financial report. The Country Club annual
budget is adopted using a modified accrual basis of accounting (identical to the general government
operations mentioned above) which is consistent with how general ledger financial records are
maintained throughout the year by the Village administration.
In developing and evaluating the Village's financial and accounting system, consideration is given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding: (a) the safeguarding of assets against loss from
unauthorized use or disposition; and (b) the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that: (a) the cost of a control should not exceed the benefits likely to be derived; and (b) the evaluation
of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the Village's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
The Village of North Palm Beach maintains budgetary controls through the annual budget public
hearing and approval process for GAAP -based budgets. The formal budget approval for each fiscal
year is accomplished in a manner compliant with Florida State Statute 200.065, commonly referred to
as Truth -in- Millage (TRIM).
Budget amendments require Village Council approval at public meetings. Budgetary control is
maintained at the department level within the fund (changed to fund level in 2013) by the encumbrance
of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders,
which result in an overrun of approved departmental appropriations within the fund, are not released
until additional appropriations are made available. Encumbered amounts lapse at year -end; however,
they are re- appropriated as part of the following year's budget.
ECONOMIC OUTLOOK
Property Values
The Village obtains a major portion of its annual General Fund financial resources (52 %) from ad
valorem property taxes. Gross assessed property values increased substantially between the years
2002 through 2006, but slowed significantly in 2007. In years 2008 through 2012, area property values
declined in value, in many instances significantly, as a result of the economic downturn. This
unprecedented decline in property values was exacerbated by the number of properties in various
stages of foreclosure. Both of these real- estate issues have had an adverse impact upon the financial
resources of the Village. However, based on market trends in 2013 as well as in early 2014, it appears
that there is new growth in our community. Both the State and South Florida, in particular, are enjoying
resurgence in real estate activity, which has translated into annual gains in market prices for area
homes. We have processed a large number of building permits throughout the Village for both new
homes and for remodels of existing homes. The Water Club development was approved in 2013,
began construction in 2014, with completion scheduled for late 2015. In addition, improvements are
being made to our commercial properties on the US Highway 1 and Northlake Boulevard corridors.
The increased activity in our commercial properties has had a positive effect on Village revenues.
The Village continues to pursue annexation of surrounding unincorporated areas that complement and
enhance the services and values of our existing community. The focus of Village annexation efforts will
be providing exemplary municipal services that are revenue "neutral" to both the annexed areas and to
the Village.
Investment Revenues
The economic downturn and softening of the money market has had a significant impact on Village
investment revenues over the past few years. In the short -term, the Village made a conscious decision
to modify its investment strategies towards the Treasury market to better protect and ensure the
availability of the Village's investment balances. This move proved successful in safeguarding Village
investments during this market free fall but impacted the interest/dividend revenues to the Village. The
Village, with the assistance of the Village's Audit Committee, adopted a "revised" Investment Policy
designed to provide safety and liquidity while maximizing investment return(s). The newly adopted
policy provided numerous investment strategies, parameters, and safeguards. The policy additionally
provided for 1/12 of the annual operating budget to be deposited in a liquid interest bearing account so
as not to impede operations should other funds be temporarily unavailable. The Audit Committee and
staff, along with the Village's Investment Advisor, continue to explore other investment opportunities
that we believe will improve yields in future years while still ensuring the safety of our investments.
Personnel Costs
The Village will continue to face increased financial challenges in the areas of personnel costs for both
salaries and benefits. In past years, several retirement plan amendments were implemented by the
Village and then followed by significant salary adjustments that magnified the impact and cost of the
retirement changes. The impact of these changes as well as the continuous improvement in the
financial markets have had a very positive financial impact on both plans. Due to legislative changes
and catastrophic claims losses, the Village has encountered significant increases in annual health
insurance costs during the past few years. In an attempt to fight the continual rising cost of healthcare,
the Village transitioned to a semi self- insured health program in 2012, which offers the potential for
possible savings if claims are minimized. For 2015, the Village will continue its focus on Employee
Wellness as a measure to help control health care costs and improve our opportunity for additional
savings from our health care provider.
The impacts of personnel salaries and benefits in the coming years will have a large and continuing
effect on future Village financing and service priorities in the areas of staffing, public services, and
public projects. Approximately 3 /4ths of the annual budget is for wages and fringe benefits. For budget
year 2013/2014, the Village conducted a compensation study to determine if salary ranges and
employee pay were both comparable and competitive. That study concluded that our pay ranges
needed to move 8.3 %, and that the range spreads needed to increase to 60 %. In addition, the study
recommended one time increases for employees equaling 8.3 %. The Village adopted the new salary
ranges but opted to provide increases based on the employee's percent penetration in the new range.
The average pay increase for employees using this approach was approximately 4.25% and was
funded through the establishment of a reserve for tax relief.
INITIATIVES AND FUTURE PROJECTS
The FY2014/2015 budget reflects a renewed commitment and predictable funding for community
infrastructure in areas such as roadways, neighborhood sidewalks, and lighting, public buildings, and
park facilities.
The Community Development Department continues to meet the demands of our Village's business
and neighborhood redevelopment. Community Development will concentrate staff resources in areas of
construction, permitting, licensing, and community planning while furthering improvements in customer
service. The continuing analysis and pursuit of annexation opportunities, zoning and redevelopment
enhancements, and improvement of our business and development regulations are also functions of
the Community Development Department. This Department will better align our Village with statutory
development guidelines and help to meet steadily growing expectations of homeowners and
developers. In addition, Community Development will work closely with our Business Advisory Board to
assist in the growth of our current businesses and to encourage new businesses to come to our
community. This year, Community Development has also begun the task of updating our land use
code. Community Development relocated to a larger facility that is more customer - friendly and will be
launching a Citizen Self Service website to allow the public and contractors online access to their
Business Tax Receipts and Permit status.
The Parks and Recreation Department continues to enhance programs for all age groups at each of its
six facilities. The newly redeveloped Anchorage Park will host a variety of events in the upcoming year,
to include: movies in the park; organized volleyball leagues; the Village's annual fishing tournament;
and Heritage Day. The parks continue to be maintained by an outside service which has been funded
under the "contractual services" line.
LTA
The Public Works Department is tasked with oversight and maintenance of Village sanitation,
infrastructure, streets, facilities, equipment, and roadways. This Department will play a major role in
maintaining and expanding our focus on community appearance during the coming year. Public Works
will continue to emphasize identification and remediation of safety concerns throughout our facilities.
We are also conducting extensive analyses of critical infrastructure in our facilities to determine future
project priorities and best maintenance practices. Public Works will address currently identified
infrastructure projects such as drainage improvements, swale maintenance, and automation of
irrigation systems. Finally, Public Works has been involved in a year -long evaluation of all work
processes and systems. The completion of the projects emanating from this assessment will be a
prime focus of the organization.
The Police Department has focused on improvements in neighborhood outreach, crime suppression,
and crime clearances. In 2008, 2011, and again in 2014, the Village's Police Department was awarded
the coveted CALEA National Accreditation for law enforcement agencies. The Police budget includes
funding for the purchase /replacement of needed marked patrol vehicles and unmarked detective vehicles.
In 2014, the Police Department achieved a significant decrease in all areas of crime as well as an
increase in clearance rates. We expect to build on that success in 2015. North Palm Beach was named
the 4t" safest city in Florida by Movado in 2014. The Dispatch function and communications were
transferred to the North County Dispatch Center in Palm Beach Gardens in October 2014, which has
increased inter - agency communications.
This year, the Human Resources Department is focused on implementing a new web -based appraisal
system that will include supervisory peer reviews to eliminate the prospect of supervisory bias or a
skewed result. Human Resources successfully completed union negotiations with all three of the
Village's collective bargaining units (police, fire, and public service workers). All Policies and
Procedures are being reviewed and updated as necessary in the coming year.
The Information Technology Department has numerous projects for the upcoming year: implementing
and transitioning the dispatch functions with the North County Dispatch Center (located in Palm Beach
Gardens), preparing the Village for LPR (License Plate Recognition) systems, going from numerous
servers to a virtual software system, and improving the Village website.
The Administration continues its ongoing implementation of an optical records storage system
(Laserfiche) for use by all Village operating departments. Optical record storage systems are now
widely used by governments and meet all State record storage requirements. This allows the Village to
transition — over time — from "paper" records to optically stored records. Optical storage permits digital
"look up" of any optical record "at will" through the convenience of a simple computer search. Optical
storage systems have become commonly used by many local governments, and the cost is relatively
modest when considering the time savings and customer service improvements they offer.
The Village created a Facebook page that has been an outlet to release traffic issues, upcoming events
and information to residents. The Village Newsletter expanded its advertising options and has
increased revenue to offset the costs of printing and postage.
The Enterprise Fund is on solid financial footing; however, there are serious infrastructure issues
related to the clubhouse that need to be addressed. During the fiscal year, community meetings were
held to discuss the future of the Country Club facility and a "wish list" of amenities was created for
future consideration. A modest remodel of the lobby was done to create a more welcoming
environment for patrons. Restaurant hours were expanded to seven days a week, 7 am to 7 pm, to
ensure consistency.
M
At the request of the Village Council, the leadership team developed a strategic plan for the Village.
The plan developed focuses on identification of critical objectives and the accomplishment of key
improvement projects which help the Village attain those objectives.
Staff developed a total of 19 strategic initiatives which are broken into high, medium, and lower priority
projects. These projects range from infrastructure improvements to the development of new programs.
Some of the near term initiatives we are focusing on include:
• Continued development of our safety program and accomplishment of both facility and
process improvements.
• Implementation of a comprehensive web -based employee appraisal system.
• Refinement of our employee wellness program in concert with our insurance carrier.
• Refinement of our strategy to improve business opportunities in the Village.
• Update of our ordinances dealing with land use.
• Evaluation of the results of the market analysis conducted in 2013 with an overall
objective of refining the strategic plan by reprioritizing existing projects and developing
new improvement projects.
As a part of our strategic focus, we recognize that our planning must be fluid and that we must be able
to adapt to changes as they occur in our community. Because of this, we will regularly calibrate our
strategic initiatives with input from both Council and our residents. The ultimate goal is to sustain the
Village as the "Best Place to Live Under the Sun" by providing superior services, embracing and
supporting timeless traditions of the community, and by ensuring that we continue to integrate modern
amenities throughout the Village to make it a safe, comfortable, and very pleasant place to live.
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.
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, 2013. The
Certificate of Achievement is a prestigious national award, recognizing conformance with the highest
standards for preparation of state and local government financial reports.
Respeeffully submitted,
lij .
Samia J2njua J e elly
Director of Finance II ge mannger
W
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Title
Mayor
Vice Mayor
President Pro Tem
Council Member
Council Member
Village Manager
Director of Finance
Village Clerk
PRINCIPAL VILLAGE OFFICIALS
SEPTEMBER 30, 2014
vii
Name
Darryl C. Aubrey
Robert A. Gebbia
David B. Norris
William L. Manuel
Doug Bush
James P. Kelly
Samia Janjua
Melissa Teal
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(3overnment Finance Officers Association
Certificate of
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for Excellence
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Reporting
Presented to
Village of North Palm Beach
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2013
*Ifr- weA�
Executive DirectovCEO
ix
FINANCIAL SECTION
NH NQWLEN, HALT & MINER, P.A.
MCERTIFIED PUBLIC ACCOUNTANTS EVERETT S. NOWLEN {1930.1864}, CPA
EDWAflDT. HOLT, CPA
WILLIAM B. MINER, CPA
WEST PALM BEACH OFFICE ROBERT W. HENDRIX, JR,. CPA
JANET R. SARICEVICH, CPA
NORTNBRIDGE CENTRE TERRY L MORTON, JR.. CPA
515 N. FLAGLER OR V E. SLTM 1700 N. RONALD BENN M. CVA, ABV. CFF, CPA
POST OFFICE BOX 347 ALEXIA G. VARGA, CFE, CPA
WEST PALM BEACH, FLORIDA 334020347 EDWARD T. HOLT, LM_ PFS, CPA
TELEPHONE (561) 659 -3060 BRIAN J. BRESCIA, CFFA, CPA
FAX [561 ] 635.0628
W W W.NH MCPA.COM KATHLEEN A. MINER, CPA
J. MICHAEL STEVENS. CPA
JARRETT A. PERRY, CPA
KARA D. PETERSON, CFE, CPA
MARK J. SYMASTER. CFE, CPA
RIJDINATORO, CPA
RYAN M. SHORE, CFP CPA
TIMOTHY H, SCHMEDES. CFP`, CPA
INDEPENDENT AUDITOR'S REPORT WE I PAR, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430 -0338
TELEPHONE (561) 996 -5612
The Honorable Mayor and Members of the Village Council FAX (561) 996.6248
The Village of North Palm Beach, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
Village of North Palm Beach, Florida as of and for the year ended September 30, 2014, and the
related notes to the financial statements, which collectively comprise the Village of North Palm
Beach, Florida's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
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 of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
1
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the Village of North Palm Beach,
Florida as of September 30, 2014, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Change in Accounting Principle
As described in Note 17 to the financial statements, the Village of North Palm Beach, Florida
adopted the recognition and disclosure requirements of Governmental Accounting Standards
Board Statement No. 65, Items Previously Reported as Assets and Liabilities and Governmental
Accounting Standards Board Statement No. 67, Financial Reporting for Pension Plans an
amendment of GASB Statement 25 during the fiscal year ended September 30, 2014. Our opinion
is not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis on pages 4 through 13, Pension and Other
Postemployment Benefit trend information on pages 67 through 71, and budgetary comparison
information on pages 72 through 73 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of
the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village of North Palm Beach, Florida's basic financial statements. The
introductory section, other supplementary information, and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The other supplementary information is the responsibility of management and was derived from
and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the other supplemental information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 18, 2015, on our consideration of the Village of North Palm Beach, Florida's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Village of North Palm Beach, Florida's
internal control over financial reporting and compliance.
West Palm Beach, Florida
March 18, 2015
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Village of North Palm Beach, Florida's (Village) Administration offers 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, 2014. Please read it in conjunction with the accompanying transmittal
letter beginning on page i, and the accompanying basic financial statements.
TABLE 1
FINANCIAL HIGHLIGHTS
(in millions)
September
30,
Increase/
Statement
2014
2013
(Decrease)
Page 9
Total net position
$28.88
$30.39
($1.51)
14
Unrestricted net position available for future use
$11.83
$12.64
($0.81)
14
Governmental net position
$26.46
$27.72
($1.26)
14
Total revenues from all sources
$23.00
$21.96
$1.04
15
Governmental revenues
$19.34
$18.30
$1.04
15
Total cost of all Village programs
$24.50
$22.82
$1.68
15
Governmental revenues over (under) expenses
($1.26)
($0.89)
($0.37)
16
General fund revenues over (under) expenses
$0.61
$0.77
($0.16)
19
General fund unassigned fund balance
$12.39
$11.34
$1.05
17
As a percent of general fund expenditures
66.07%
65.10%
$0.01
Country Club revenues over (under) expenses
($0.25)
$0.03
($0.28)
22
Change in total long -term debt for the Village
($0.38)
$0.04
($0.42)
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the financial
statements are: (1) Government -wide financial statements that include the Statement of Net Position 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 basic financial statements expand upon information reported in the government -
wide and governmental fund statements.
REPORTING ON THE VILLAGE AS A WHOLE
Statement of Net Position and the Statement of Activities (Government -wide)
A frequently asked question regarding the Village's financial health is whether the year's activities
contributed positively to the overall financial well being. The Statement of Net Position 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, deferred outflows of resources, liabilities and
deferred inflows of resources 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.
4
These two statements report the Village's net position and changes therein. Net position, the difference
between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is
one way to measure the Village's financial health, or financial position. Over time, increases or decreases
in net position are an indicator of whether the financial health is improving or deteriorating.
The Statement of Net Position and the Statement of Activities present information about the following:
Governmental activities - All of the Village's basic services are considered to be governmental
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
types of funds - governmental, proprietary, and fiduciary - use different accounting approaches as
explained below.
Governmental Funds
Most of the Village's basic services are reported in governmental funds. Governmental funds
focus on how resources flow in and out, with balances available for spending remaining at year-
end. These funds are reported using an accounting method called the modified accrual accounting
method, which measures cash and all other financial assets that can be converted to cash readily.
The governmental fund statements provide a detailed short-term view of the Village's general
government operations and the basic services it provides. Governmental fund information shows
whether there are more or fewer financial resources that can be spent in the near future to finance
the Village's programs.
The Village maintains six individual governmental funds: the General Fund, one Capital Projects
Fund, and four Special Revenue Funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balance for the General Fund and the Capital Projects Fund, both of which are
considered maior funds (generally accepted accounting principles define a fund as major based on
that fund's size relative to the other funds of the government; a fund may also be reported as
major if the government's officials believe that fund is particularly important to financial
statement users). The remaining funds are considered non-my or funds, and data from these
governmental funds is combined into a single column for an aggregated presentation. The basic
governmental fund financial statements can be found on pages 17 -20 of this report.
Proprietary Funds
The Village's only proprietary fund is the Country Club Fund, which charges 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 Position and
the Statement of Activities. The basic proprietary fund financial statements can be found on pages
21 -23 of this report.
• Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The funds in this category are the Village's Pension Trust Funds and Agency Funds.
Fiduciary funds are not reflected in the government -wide financial statement because the
resources of those funds are not available to support the Village's own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund
financial statements can be found on pages 24 -25 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net positon may serve over time as a useful indicator of a government's financial
position. In the case of the Village, the net position was $28.88 million at the close of the most recent
fiscal year.
A significant portion of the Village's net position (58.42 %) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment), less any related debt still outstanding, which was used to
acquire those assets. The Village uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending.
Assets:
Current and other assets
Capital assets
Total assets
Liabilities:
Current liabilities
Long -term liabilities
Total liabilities
Deferred inflows of resources:
Net positon:
Table 2
Village of North Palm Beach
Net Position
(In Thousands)
Governmental Business -type
Activities Activities Total
2014 2013 2014 2013 2014 2013
$ 17,359
$ 16,333
$ 988
$ 1,068
$ 18,347
$ 17,401
14,967
15,432
5,255
5,724
20,222
21,156
32,326
31,765
6,243
6,792
38,569
38,557
$ 2,422 $ 2,667 $ 28,884
$ 30,390
2,474
1,154
339
281
2,813
1,435
3,215
2,793
3,482
3,844
6,697
6,637
5,689
3,947
3,821
4,125
9,510
8,072
175
95
175
95
Net investement in capital assets
14,967
15,432
1,908 1,999 16,875
17,431
Restricted
181
317
181
317
Unrestricted
11,314
11,974
514 668 11,828
12,642
Total net position
$ 26,462
$ 27,723
$ 2,422 $ 2,667 $ 28,884
$ 30,390
C
Governmental Activities
The cost of all governmental activities this year was $20.60 million. As shown on Table 3, Changes in
Net Position, those who directly benefited from the programs paid for $3.82 million of this cost and
$15.52 million was financed through general revenues. Governmental activities decreased the Village's
net position by $1.26 million, thereby accounting for 84% of the total decrease in the net position of the
Village. Key elements of this decrease are due to increased personnel related costs for salaries, health
insurance and pensions.
Additional detail is shown in Table 3, which follows on the subsequent page.
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Local option gas taxes
Utility service taxes
Sales and use taxes
Franchise taxes
Investment earnings
Miscellaneous
Gain on asset disposals
Total revenues
Expenses:
Program expenses:
General Government
Public Safety
Public Works
Community Development & Planning
Leisure Services
Country Club
Total expenses
Increase (decrease) in net position
Net position - beginning of year
Net position - end of year
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Governmental Business -type
Activities Activities
2014 2013 2014 2013
Total
2014 2013
$ 3,823
$ 3,114
$ 3,646 $
3,577
$ 7,469
$ 6,691
90
92
90
92
16
234
16
234
10,155
9,981
10,155
9,981
266
262
266
262
2,277
2,198
2,277
2,198
1,261
1,187
1,261
1,187
1,233
1,161
1,233
1,161
17
37
11
9
28
46
146
38
146
38
56
70
56
70
19,340
18,304
3,657
3,656
22,997
21,960
2,696
2,490
2,696
2,490
9,260
8,282
9,260
8,282
4,485
4,483
4,485
4,483
1,046
966
1,046
966
3,114
2,974
3,114
2,974
3,902
3,629
3,902
3,629
20,601
19,195
3,902
3,629
24,503
22,824
(1,261)
(891)
(245)
27
(1,506)
(864)
27,723
28,614
2,667
2,640
30,390
31,254
$ 26,462
$ 27,723
$ 2,422 $
2,667
$ 28,884
$ 30,390
E
The Village's programs include General Government, Public Safety, Public Works, Community
Development & Planning, and Leisure Services. Each program's net cost (total cost, less revenues
generated by the activities) is presented below. The net cost shows the extent to which the Village's
general taxes support each of the Village's programs.
General government
Public safety
Public works
Community development
and planning
Leisure services
Interest on long -term debt
Table 4
Village of North Palm Beach
Cost of services
(In Thousands)
2014
2013
Total Cost
Net Cost
Total Cost
Net Cost
of Services
of Services
of Services
of Services
$ 2,696
$ (2,577)
$ 2,490
$ (2,380)
9,260
(8,635)
8,282
(7,726)
4,485
(4,052)
4,483
(4,046)
1,046
575
966
26
3,114
(1,983)
2,974
(1,629)
$ 20,601 $ (16,672) $ 19,195 $ (15,755)
At the end of the current year, as compared to the prior year, many of the departments realized an increase
in their overall costs (for example Public Safety increased by $0.91 million and Leisure Services
increased by $0.35 million). The increase is a result of the increases in personnel - related costs.
Business -Type Activities
Charges for Services (revenues) in the Business -type activities experienced an overall decrease ($0.07
million) from that of the previous year. Also, during this same time period, expenses increased by $0.27
million. Net positon of the Proprietary Fund (Country Club) at September 30, 2014, were $2.42 million.
Net position decreased by $245,495.
The negative impact in the Village's Business -type activities was a result of a decline in revenues and
several unbudgeted projects: Adverse weather conditions resulted in the closure of the Golf Course,
which had a negative impact on revenues; several unbudgeted projects were necessary during the fiscal
year (repairs to the clubhouse's HVAC system, golf projects, sewer lateral installation). The Enterprise
Fund is on solid financial footing; however, there are serious infrastructure issues related to the clubhouse
that need to be addressed.
I
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, unrestricted (unassigned /assigned) fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the combined fund balance for all Governmental Funds was $14.20
million, a $0.35 decrease over the 2013 fund balance of $14.55 million. Approximately 97% of the
combined ending fund balance ($13.77 million) constitutes unrestricted (unassigned /assigned) fund
balance, which is available for spending at the government's discretion. The remainder of fund balance
($0.43 million) is restricted (non - spendable /restricted) to indicate that it is not available for new spending
because it has already been committed for a variety of other restricted purposes.
General Fund
The General Fund is the chief operating fund of the Village. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $12.39 million while the General Fund total fund
balance was $12.99 million. As a measure of the General Fund's liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance
is 66% of total general fund expenditures, while total fund balance represents 69% of that same amount.
The general fund unassigned fund balance ($12.39 million) represents an increase of $1.05 million over
the 2013 unassigned general fund balance of $11.34 million. Key elements of this increase are listed
below:
• Revenues for Franchise Fees and Utility Service Taxes were budgeted based on prior year trends
($3.20 million). For the current year, the Village received $3.51 million.
• Revenues for Building Permits were budgeted based on prior year trends ($0.86 million). For the
current year, the Village received $1.09 million.
• Due to discounts for prompt payments, State law requires that only 95% of the gross ad- valorem
taxes be budgeted as revenue ($9.97 million). For the current year, the Village received $10.15
million.
The increase in the above - mentioned revenues, while holding the line on operating costs, resulted in a
positive impact in the Village's General Fund.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were $679,573 and can be briefly
summarized as follows:
• Small Business Grant Carryover ($73,935)
• Prior Year Open Purchase Order Carryover ($266,463)
• Veteran's Memorial Project Carryover ($15,925)
• Kiddie Pool Project Carryover ($45,750)
• Use of Reserve — Anchorage Park Grant Match ($277,500)
10
General Fund Budget Analysis
As shown on pages 69 -71 of this report, in the Schedule of Departmental Expenditures — Budget and
Actual, there was a favorable budget to actual cost variance of $221,146 in General Fund Departmental
Expenditures. The areas of significant budget to actual variances for the General Fund expenditures are
summarized below:
• To counter the decrease in revenue brought about by property tax reform, the economic
downturn and the increase in employee compensation costs, the Village Manager directed
Department Directors to reduce spending in a manner that would minimize the impact on our
residents. This required seeking new ways to serve our customers. The Directors did an
admirable job identifying areas to cut costs resulting in favorable budget variances. The areas of
significant budget to actual variances for the General Fund operating costs are summarized
below:
o The Village saw overall budgetary savings in its repair and maintenance costs ($105,480):
during the budgeting process, various assumptions, along with previous year costs, are used
in the development of the current year budget. The actual costs came in well under the
projected budgeted amount.
o The Village's "Small Business Grant Program" is administered through the Community
Development Department and is structured to provide matching grants of up to $7,500 for
improvements to small business properties. Businesses would be required to match each
dollar of grant funds with one dollar from their own funds. Businesses must complete an
application and will have to meet certain criteria to qualify. In 2014, there was only one (1)
application approved for the Grant which resulted in a budgetary savings ($66,435) in the
Community Development Department.
Capital Projects Fund
The Village's Capital Projects Fund is project specific and involves multi -year projects. Appropriations in
this fund remain open and carry over to succeeding years until planned expenditures are made, or until
they are amended or cancelled. At the end of the current fiscal year, the total fund balance was $0.89
million, a $0.91 million decrease over the 2013 fund balance of $1.80 million. This is primarily due to
the completion of several capital projects.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the Village are those assets that are used in the performance of Village functions.
Capital 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 fiscal years ending after June 30, 1980, or that were significantly
reconstructed or improved during that multiyear period.
The Village's investment in capital assets for its governmental and business -type activities as of
September 30, 2014 and 2013 amounts to $20.22 million and $21.16 million, respectively (net of
accumulated depreciation).
11
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business -type
Activities Activities
2014
2013
2014
2013
Total
2014 2013
Land
$ 2,056
$ 2,056
$ 1,051
$ 1,051
$ 3,107
$ 3,107
Construction in progress
88
740
88
740
Buildings and improvements
23,095
22,246
1,405
1,405
24,500
23,651
Improvements other than buildings
272
272
272
272
Improvements - golf course
5,824
5,824
5,824
5,824
Furniture, fixtures and equipment
6,904
6,542
776
773
7,680
7,315
Total assets
32,143
31,584
9,328
9,325
41,471
40,909
Less accumulated depreciation
(17,176)
(16,152)
(4,073)
(3,601)
(21,249)
(19,753)
Net assets
$ 14,967
$ 15,432
$ 5,255
$ 5,724
$ 20,222
$ 21,156
Additional information on the Village's capital assets can be found in Note 5 on pages 44 through 46 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 long -term debt of $3.37 million, all of which is in business -type activities.
The last outstanding debt instrument in the General Fund was satisfied in 2010; therefore, there is no
long -term debt outstanding in the Village's governmental activities. None of the Village's long -term debt
comprises debt backed by the full faith and credit of the government.
Table 6
Village of North Palm Beach
Outstanding Debt
(In Thousands)
Governmental Business -type
Activities Activities Total
2014 2013 2014 2013 2014 2013
Loans payable $ 3,097 $ 3,358 $ 3,097 $ 3,358
Capital leases 274 396 274 396
Total $ $ $ 3,371 $ 3,754 $ 3,371 $ 3,754
Additional information on the Village's debt can be found in Note 6 on pages 46 through 48 of this report.
12
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
The Village's Unassigned Fund Balance is viewed by the Administration as a measurement of Village
financial stability. Unassigned general fund balance increased to $12.39 million during the current 2014
fiscal year. The Village is now ready to address the economic challenges anticipated in the next few
years.
The economic outlook for the primary revenue source for Florida municipalities will be challenging, as
cities are facing state mandated reductions of property taxes. In an effort to provide tax relief and spur the
slumping housing market, the State legislature focused on property tax reform in the 2007 session. House
Bill 1B was enacted to limit the authority of local governments to levy ad valorem taxes for the FY 2008
budget year and beyond.
The economic downturn and decline in property values have significantly impacted Village revenues. To
address the impact of the legislation, continuing increases in the cost of employee compensation and
benefits, and the reduction of revenues, the Village will need to continue to prioritize essential services
and desired levels of service to allocate sufficient funding in future budget years.
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.
13
BASIC FINANCIAL STATEMENTS
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
September 30, 2014
Governmental Business -type
Activities Activities Total
Assets
14,966,927
1,907,746 16,874,673
Restricted for:
Cash and cash equivalents
$ 7,375,792 $
832,217 $
8,208,009
Investments
8,387,482
21,104
8,387,482
Accounts receivable
452,625
19,687
472,312
Inventories
162,959
93,225
256,184
Prepaids
84,476
18,907
103,383
Due from other governments
205,428
2,421,913 $ 28,883,691
205,428
Restricted assets:
903,298
416,197
1,319,495
Cash and cash equivalents
180,755
3,065,637
180,755
Net pension assets
509,729
3,821,265
509,729
Intangible assets, net of amortization
23,929
23,929
Capital assets:
Nondepreciable
2,144,071
1,051,311
3,195,382
Depreciable (net of depreciation)
12,822,856
4,203,902
17,026,758
Total assets
32,326,173
6,243,178
38,569,351
Liabilities
14,966,927
1,907,746 16,874,673
Restricted for:
Accounts payable
535,023
84,199
619,222
Accrued liabilities
810,502
21,104
810,502
Due to other governments
1,034,903
20,687
1,034,903
Deposits
44,599
6,700
6,700
Unearned revenue
93,703
248,532
342,235
Noncurrent liabilities:
$ 26,461,778 $
2,421,913 $ 28,883,691
Due within one year
903,298
416,197
1,319,495
Due in more than one year
2,311,945
3,065,637
5,377,582
Total liabilities
5,689,374
3,821,265
9,510,639
Deferred inflows of resources
Unearned revenue 175,021 175,021
Total deferred inflows of resources 175,021 175,021
Net position
Net investment in capital assets
14,966,927
1,907,746 16,874,673
Restricted for:
Recreation
91,695
91,695
Streets and roads
21,104
21,104
Public safety
20,687
20,687
Library
44,599
44,599
Other purposes
2,670
2,670
Unrestricted
11,314,096
514,167 11,828,263
Total net position
$ 26,461,778 $
2,421,913 $ 28,883,691
See notes to the financial statements.
14
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2014
Charges for
Functions /Programs Expenses Activities
Government:
Governmental activities
General government
Public safety
Public works
Community development and planning
Leisure services
Total governmental activities
Business -type activities - country club
Total business -type activities
Total government
15
$ 2,696,298 $
110,694
9,259,442
592,644
4,485,246
402,814
1,046,299
1,621,471
3,114,213
1,096,021
20,601,498
3,823,644
3,902,131 3,645,706
3,902,131 3,645,706
$ 24,503,629 $ 7,469,350
Program Revenues Net Expense (Revenue) and
Operating Capital Changes in Net Position
Grants and Grants and Governmental Business -type
Contributions Contributions Activities Activities Total
$ 9,032 $
32,096
30,283
19,109 16,098
90,520 16,098
$ 90,520 $ 16,098
General Revenues:
Taxes:
Property taxes
Local option gas taxes
Utility service taxes
Franchise taxes
Sales and use taxes
Investment income
Miscellaneous
Gain on disposal of equipment
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year
$ (2,576,572) $
$ (2,576,572)
(8,634,702)
(8,634,702)
(4,052,149)
(4,052,149)
575,172
575,172
(1,982,985)
(1,982,985)
(16,671,236)
(16,671,236)
(256,425) (256,425)
(256,425) (256,425)
(16,671,236) (256,425) (16,927,661)
10,154,695
10,154,695
266,147
266,147
2,277,366
2,277,366
1,232,669
1,232,669
1,260,617
1,260,617
16,653
10,930 27,583
146,360
146,360
55,636
55,636
15,410,143 10,930 15,421,073
(1,261,093) (245,495) (1,506,588)
27,722,871 2,667,408 30,390,279
$ 26,461,778 $ 2,421,913 $ 28,883,691
See notes to the financial statements.
16
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2014
Assets
Cash and cash equivalents
Investments
Accounts receivable
Inventories
Prepaids
Due from other funds
Due from other governments
Restricted cash and cash equivalents
Total assets
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred inflows of resources
Unearned revenue
Total deferred inflows of resources
Fund balances
Nonspendable:
Inventories and prepaids
Restricted for:
Recreation
Streets and roads
Police
Library
Other purposes
Assigned for:
Small business grants
Subsquent year's expenditures
Special revenue funds
Capital project funds
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
$ 328,572 $ 153,066 $ 53,385 $ 535,023
810,502 810,502
1,034,903 1,034,903
44,028 44,028
93,703 93,703
2,267,680 153,066 97,413 2,518,159
175,021 175,021
175,021 175,021
247,435 247,435
46,195
Capital
Nonmajor
Total
Projects
Governmental
Governmental
General
Fund
Funds
Funds
2,670
2,670
66,435
$ 6,055,724
$ 950,888
$ 369,180
$ 7,375,792
8,387,482
8,387,482
452,625
841,850
841,850
452,625
162,959
12,388,365
12,987,863
162,959
84,476
$ 15,430,564
$ 1,040,416 $
84,476
44,028
44,028
152,043
53,385
205,428
135,255
45,500
180,755
$ 15,430,564
$ 1,040,416
$ 422,565
$ 16,893,545
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable
Accrued liabilities
Due to other governments
Due to other funds
Unearned revenue
Total liabilities
Deferred inflows of resources
Unearned revenue
Total deferred inflows of resources
Fund balances
Nonspendable:
Inventories and prepaids
Restricted for:
Recreation
Streets and roads
Police
Library
Other purposes
Assigned for:
Small business grants
Subsquent year's expenditures
Special revenue funds
Capital project funds
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
$ 328,572 $ 153,066 $ 53,385 $ 535,023
810,502 810,502
1,034,903 1,034,903
44,028 44,028
93,703 93,703
2,267,680 153,066 97,413 2,518,159
175,021 175,021
175,021 175,021
247,435 247,435
46,195
45,500
91,695
21,104
21,104
20,687
20,687
44,599
44,599
2,670
2,670
66,435
66,435
150,373
150,373
325,152 325,152
841,850
841,850
12,388,365
12,388,365
12,987,863
887,350
325,152 14,200,365
$ 15,430,564
$ 1,040,416 $
422,565 $ 16,893,545
See notes to the financial statements.
17
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Balance Sheet — Governmental Funds
to the Statement of Net Position
Governmental Funds
September 30, 2014
Fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds:
Governmental capital assets
Less: accumulated depreciation
Net pension assets related to defined benefit pension plans are not
available to pay for current -period expenditures and, therefore, are not
reported as assets in the governmental funds:
Long -term liabilities, including notes and bonds payable, are not due and
payable in the current period and therefore are not reported in the
governmental funds. Long term liabilities at year -end consist of:
Claims and settlements
Other postemployement benefits
Accrued compensated absences
Net position of governmental activities
See notes to the financial statements.
IN
$ 32,142,692
(17,175,765)
(50,000)
(1,955,877)
(1,209,366)
$ 14,200,365
14,966,927
509,729
(3,215,243)
$ 26,461,778
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2014
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Public works
Community development and planning
Leisure services - recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances
Beginning of year
End of year
605,482 (957,767)
(352,285)
45,500 277,500 323,000
(323,000) (323,000)
(323,000) 45,500 277,500
282,482 (912,267) 277,500 (352,285)
12,705,381 1,799,617 47,652 14,552,650
$ 12,987,863 $ 887,350 $ 325,152 $ 14,200,365
See notes to the financial statements.
19
Capital
Nonmajor
Total
Projects
Governmental
Governmental
General
Fund
Funds
Funds
$ 13,930,877
$
$
$ 13,930,877
1,344,653
1,344,653
1,367,378
321,230
1,688,608
2,320,305
2,320,305
117,869
117,869
16,653
16,653
258,086
258,086
19,355,821
321,230
19,677,051
2,541,546
2,541,546
8,626,397
321,230
8,947,627
3,773,689
3,773,689
1,004,642
1,004,642
2,644,598
2,644,598
159,467
957,767
1,117,234
18,750,339
957,767
321,230
20,029,336
605,482 (957,767)
(352,285)
45,500 277,500 323,000
(323,000) (323,000)
(323,000) 45,500 277,500
282,482 (912,267) 277,500 (352,285)
12,705,381 1,799,617 47,652 14,552,650
$ 12,987,863 $ 887,350 $ 325,152 $ 14,200,365
See notes to the financial statements.
19
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2014
Net change in fund balances - total governmental funds $ (352,285)
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 $ 1,097,286
Less: current year depreciation (1,546,909)
(449,623)
Gains and losses on disposal of capital assets are reported in the statement
of activities, whereas in the governmental funds the proceeds from the sale
increases financial resources. The difference is the net book value of the
assets retired:
Net book value for retired assets (15,416)
Expenses that do not use current financial resources are not
reported on the governmental funds but are included in the
statement of activities:
Change in long -term compensated absences (18,905)
Change in net pension asset of defined benefit pension plans (21,817)
Change in other postemployement benefits (403,047)
(443,769)
Change in net position $ (1,261,093)
See notes to the financial statements.
U11
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
Proprietary Fund
September 30, 2014
Assets
Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Prepaids
Total current assets
Non - current assets
Intangible asset, net
Capital assets, net
Total non - current assets
Total assets
Liabilities
Current liabilities
Accounts payable
Deposits
Unearned revenue
Compensated absences - current portion
Capital leases - current portion
Loans payable - current portion
Total current liabilities
Non - current liabilities
Other postemployement benefits
Compensated absences
Capital leases
Loans payable
Total non - current liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted
Total net position
See notes to the financial statements.
21
Enterprise
$ 832,217
19,687
93,225
18,907
964,036
23,929
5,255,213
5,279,142
6,243,178
84,199
6,700
248,532
17,572
126,705
271,920
755,628
85,000
7,866
147,766
2,825,005
3,065,637
3,821,265
1,907,746
514,167
$ 2,421,913
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended September 30, 2014
Operating expenses
Golf course maintenance expenses
Enterprise
Operating revenue
131,194
Greens fee /cart rentals /membership fees
$ 2,328,539
Golf shop revenues
405,986
Driving range revenues
283,320
Restaurant revenues
620,926
Miscellaneous
6,935
Total operating revenues
3,645,706
Operating expenses
Golf course maintenance expenses
1,209,689
Clubhouse grounds expenses
131,194
Golf shop expenses
988,077
Food and beverage expenses
798,215
Administrative and general
93,562
Insurance
48,169
Other
56
Depreciation and amortization
481,882
Total operating expenses
3,750,844
Operating income
(105,139)
Nonoperating revenues (expenses)
Interest revenue
10,930
Interest expense
(151,287)
Total nonoperating revenues (expenses)
(140,357)
Change in net position (245,495)
Net position - beginning 2,667,408
Net position - ending $ 2,421,913
See notes to the financial statements.
22
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Cash Flows
Proprietary Fund
For the Year Ended September 30, 2014
Cash flows from operating activities:
Receipts from customers
Payments to suppliers for goods or services
Payments to employees for services
Net cash provided by operating activities
Cash flows from capital and related financing activities:
Principal paid on long term debt
Interest paid on debt
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
Cash flows from investing activities:
Interest and dividends on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income
to net cash provided by operating activities:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and amortization
Change in assets and liabilities
(Increase) in accounts receivable
Decrease in inventory
Decrease in prepaids
Increase in accounts payable
Increase in deposits
(Decrease) in compensated absences payable
Increase in deferred revenue
Increase in other postemployment benefits
Total adjustments
Net cash provided by operating activities
See notes to the financial statements.
23
Enterprise
$ 3,671,548
(2,206,188)
(977,999)
487,361
(382,534)
(151,287)
(8,120)
(541,941)
10,930
(43,650)
875,867
$ 832,217
$ (105,138)
481,882
(7,908)
3,697
36,110
24,930
2,900
(640)
30,850
20,678
592,499
$ 487,361
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2014
Assets
Cash and cash equivalents
Investments:
Common equity securities
International common equity securities
U.S. Government agencies
Municipal bonds
Corporate bonds
Equity mutual funds
Fixed income mutual funds
Real estate investment fund
Accrued interest and dividends
Accounts receivable
Prepaids
Total assets
Liabilities
Accounts payable
Accounts payable, broker - dealers
Due to others
Total liabilities
Net Position
Held in trust for pension benefits
and other purposes
Employee
Retirement
Funds
$ 2,081,371
8,808,720
1,005,284
1,064,305
220,970
2,496,523
9,041,300
2,748,417
1,254,827
48,509
148,550
1,489
28,920,265
29,657
158,783
Agency
Funds
$ 356,060
356,060
356,060
188,440 356,060
$ 28,731,825 $
See notes to the financial statements.
24
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended September 30, 2014
Investment earnings
Dividends and interest 674,616
Net increase in fair value
of investments 2,019,232
Total investment earnings 2,693,848
Less: investment expenses 153,366
Total net investment earnings 2,540,482
Total additions 4,597,918
Deductions
Administrative expense 83,919
Benefits 673,111
Refund of contributions 42,137
Total deductions 799,167
Change in net position 3,798,751
Net position - beginning 24,933,074
Net position - ending $ 28,731,825
See notes to the financial statements.
25
Employee
Retirement
Funds
Additions
Contributions
Employer
$ 1,506,587
Plan members
229,619
State on- behalf payments
321,230
Total contributions
2,057,436
Investment earnings
Dividends and interest 674,616
Net increase in fair value
of investments 2,019,232
Total investment earnings 2,693,848
Less: investment expenses 153,366
Total net investment earnings 2,540,482
Total additions 4,597,918
Deductions
Administrative expense 83,919
Benefits 673,111
Refund of contributions 42,137
Total deductions 799,167
Change in net position 3,798,751
Net position - beginning 24,933,074
Net position - ending $ 28,731,825
See notes to the financial statements.
25
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Village of North Palm Beach, Florida ( "the Village ") was incorporated in 1956 pursuant to
Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the
northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately
1,900 acres of land and 1,200 acres of lakes, canals and lagoons. The Village's nonseasonal
population consists of approximately 13,000 residents, which increases during the winter months
to approximately 18,000 people. The Village operates under the Council - Manager form of
government and provides the following services to its residents: public safety, planning and
zoning, sanitation, library, parks, marinas, and a country club. The Village Council (the
"Council ") is responsible for legislative and fiscal control of the Village.
As required by generally accepted accounting principles, these financial statements include the
Village (the primary government) and its component units. Component units are legally separate
entities for which the Village is financially accountable. The Village is financially accountable if:
• it appoints a voting majority of the organization's governing board and (1) it is able to
impose its will on the organization, or (2) there is a potential for the organization to
provide specific financial benefits to or impose specific financial burdens on the Village,
or
• the organization is fiscally dependent on the Village and (1) there is a potential for the
organization to provide specific financial benefits to the Village or (2) impose specific
financial burdens on the Village.
Organizations for which the Village is not financially accountable are also included when doing
so is necessary in order to prevent the Town's financial statements from being misleading.
Based upon application of the above criteria, the Village of North Palm Beach has determined
that there are two legally separate entities to consider as potential component units. The Village
of North Palm Beach General Employees' Retirement Fund and the Village of North Palm Beach
Fire and Police Retirement Fund are component units as they are fiscally dependent on and
impose a specific financial burden on the Village. They are reported in the Village's financial
statements as fiduciary funds.
B. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all non - fiduciary activities of the Village. For the most part,
the effect of interfund activities has been removed from these statements. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely, to a significant extent, on fees and charges
for support.
26
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government -wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment, and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and the major individual enterprise fund are
reported as separate columns in the fund financial statements.
C. Measurement Focus. Basis ofAccounting and Financial Statement Presentation
The government -wide financial statements and proprietary fund financial statements are reported
using the accrual basis of accounting and the economic resources measurement focus. Fiduciary
funds use the accrual basis of accounting and, 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 requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Village considers revenues to be available if they are
collected within 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, sales taxes, franchise taxes, licenses, intergovernmental revenue, investment
income, and charges for services are all considered to be susceptible to accrual and so have been
recognized as revenue of the current fiscal period. All other revenues are considered to be
measurable and available only when received in cash by the Village.
27
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus. Basis of Accounting and Financial Statement Presentation (Continued)
The Village reports the following major governmental funds:
General Fund
The general fund is the primary operating fund and is used to account for all financial resources
applicable to the general operations of the Village except those required to be accounted for in
another fund.
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.
The Village reports the following major (and only) proprietary fund:
Country Club Enterprise Fund
The fund accounts for the activities related to the Country Club.
Additionally, the Village reports the following fund types:
Special Revenue Funds
The Village has four special revenue funds to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specific sources. The funds are the Public
Safety Fund, Northlake Boulevard Fund, Recreation, and On- Behalf Pension Contributions.
Employee Retirement Funds
The pension trust funds account for the activities of the General Employees Retirement Fund and
the Fire and Police Officers Retirement Fund, which accumulate resources for pension benefits
to qualified employees.
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. The two agency funds are the Northlake Boulevard Task Force,
which is for the streetscape improvement of Northlake Boulevard, and the Manatee Protection
Fund, in which the assets are held in trust for the protection of manatees through the enforcement
of boat speed zones on the intracoastal and inland waterways.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus. Basis of Accounting and Financial Statement Presentation (Continued)
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the government's
country club and various other functions of the Village. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non - operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's Country Club Enterprise Fund are charges to
customers for sales and services. Operating expenses for the Enterprise Fund include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non - operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Village's policy to
use restricted resources first, then unrestricted resources as needed.
D. Assets. Liabilities, and Net Position or Equity
Cash and Cash Equivalents
All short -term investments that are highly liquid are considered to be cash equivalents. Cash
equivalents are readily convertible to a known amount of cash, and, at the day of purchase, have
a maturity date no longer than three months.
Accounts Receivable
Accounts receivable of the General Fund consists of billed and unbilled receivables.
Concentration of Credit Risk
The Village performs ongoing credit evaluations of its customers and does not require collateral.
The Village maintains an allowance for uncollectible accounts at a level which management
believes is sufficient to cover potential credit losses.
Investments
Investments are reported at fair value, which is determined by using various third -party pricing
sources. The Local Government Surplus Funds Trust Fund, administered by the Florida State
Board of Administration, is a "2a -7 like" pool and these investments are valued using the pooled
share price.
29
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
Interfund Transactions
Activity between funds that is representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either "due to" or "due from other funds ". Any
residual balance outstanding between the governmental activities and business -type activities are
reported in the government -wide financial statements as internal balances.
Transfers and Interfund balances totally within governmental activities and those that are totally
within business -type activities are eliminated and not presented in the government -wide financial
statements. Transfers and balances between governmental and business -type activities are
presented in the government -wide financial statements.
Inventories and Prepaid Items
Inventories are valued at cost determined on a last -in, first -out basis (LIFO). The costs of
governmental fund type inventory are recorded as expenditures when consumed rather than when
purchased. Inventories in the Enterprise Fund consist of goods for sale to the public. The initial
cost is recorded as an asset at the time the individual inventory items are purchased and are
charged against operations in the period when used.
Payments made to vendors for services that will benefit future periods are reported as prepaid
items using the consumption method by recording an asset for the prepaid amount and reflecting
an expenditure in the year in which the services are consumed.
Capital Assets and Depreciation
Capital assets, which include property, plant, infrastructure, and equipment, are reported in the
applicable governmental or business -type activities column in the government -wide financial
statements. The Village capitalizes all land purchases. The capitalization policy for other assets
are items with an estimated life in excess of one year and an initial individual cost of $250,000
for infrastructure, $25,000 for land improvements, $50,000 for buildings and building
improvements, and $5,000 for equipment and vehicles. The Village has elected to retroactively
apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure
assets acquired in fiscal years ending after June 30, 1980, or that were significantly reconstructed
or improved during that multi -year period. Infrastructure is reported in buildings and
improvements.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
Capital Assets and Depreciation (Continued)
The accounting and reporting treatment applied to the capital assets associated with a fund is
determined by the fund's measurement focus. General capital assets are assets of the Village as
a whole. When purchased, such assets are recorded as expenditures in the governmental funds
and capitalized as assets in the government -wide statement of net position. General capital
assets are carried at historical cost. 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 gifts or bequests 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 is 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 capital assets are as
follows:
Buildings, improvements and infrastructure 5 -30 years
Golf course improvements 5 -30 years
Machinery and Equipment 3 -15 years
Vehicles 3 -20 years
Deferred Outflows and Inflows of Resources
The statement of net position includes a separate section for deferred outflows of resources. This
represents the usage of net position applicable to future periods and will not be recognized as
expenditures until the future period to which it applies. Currently, the Village does not have any
deferred outflows.
The statement of net position also includes a separate section, listed below total liabilities, for
deferred inflows of resources. This represents the acquisition of net position applicable to future
periods and will not be recognized as revenue until the future period to which it applies. The
source of the unavailable revenue is local business tax revenues collected prior to the date on the
statement of net position which are unearned and will be recognized as an inflow of resources in
the period that the amounts become available.
31
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
Unearned Revenue
The Village reports unearned revenue on its statements of net position and governmental funds
balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition.
In subsequent periods, when revenue recognition criteria are met the unearned revenue is
removed and revenue is recognized.
Compensated Absences
The Village's employees are granted compensated absence pay for vacation and sick leave in
varying amounts based on length of service. Unused compensated absences are payable upon
separation from service. Vacation is accrued as a liability when the employee earns benefits.
This means that the employee has rendered services that give rise to a vacation liability and it is
probable that the Village will compensate the employee in some manner, e.g., in cash or paid
time -off, now or upon termination or retirement. The Village uses the vesting method in
accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for
employees who are eligible to receive termination payments upon separation.
Compensated absences are accrued when incurred in the government -wide and proprietary
financial statements. A liability for these amounts is reported in the governmental funds only if
the amounts have matured, for example, as a result of employee resignations or retirements. For
the governmental funds, compensated absences are liquidated by the General Fund.
Loy&Term Obli ate
In the government -wide financial statements, and proprietary fund types in the fund financial
statements, long -term debt and other long -term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
32
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
Net Position
Equity in the government -wide statement of net position and the proprietary fund is displayed in
three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Invested in
capital assets, net of related debt consists of capital assets reduced by accumulated depreciation
and by any outstanding debt incurred to acquire, construct, or improve those assets. Restricted
net position is reported when there are legal limitations imposed on their use by Village
legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net
position consists of all net position that does not meet the definition of either of the other three
components.
Fund Equity
In the fund financial statements, governmental funds report fund balance classifications that
comprise a hierarchy based primarily on the extent to which the Village is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is
reported under the following categories:
• Nonspendable fund balance represents amounts that are not in spendable form or are
legally or contractually required to be maintained intact.
• Restricted fund balance represents amounts that can be spent only for specific purposes
stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations
of other governments) or imposed by law through constitutional provisions or enabling
legislation.
• Committed fund balance represents amounts that can be used only for the specific purposes
pursuant to constraints imposed by Village Commission by the adoption of an ordinance,
the Village's highest level of decision making authority. Those committed amounts cannot
be used for any other purpose unless the Village removes or changes the specified use by
the adoption of an ordinance.
• Assigned fund balance includes spendable fund balance amounts that are intended to be
used for specific purposes, as expressed by the Village Commission or Village Manager, in
accordance with the Villages fund balance policy, that are neither considered restricted nor
committed. The Small Business Grants is a program the Village Council approved in the
prior fiscal year to provide matching grants of up to $7,500 for improvements to small
business properties.
• Unassigned fund balance is the residual fund balance classification for the general fund.
33
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
Fund Equity (Continued)
When both restricted and unrestricted resources are available for use, it is the Village's policy to
use restricted resources first, then unrestricted resources as they are needed. The Village will first
use committed fund balance, then assigned fund balance, and then unassigned fund balance when
expenditures are incurred for purposes for which any of the unrestricted fund balance
classifications could be used.
Use o Estimates
The financial statements and related disclosures are prepared in conformity with accounting
principles generally accepted in the United States. Management is required to make estimates
and assumptions that affect the reported amounts of assets, deferred inflows and outflows, and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements,
and revenue and expenses during the period reported. These estimates include the collectability
of accounts receivable, the use and recoverability of inventory, the useful lives and impairment
of tangible assets, and the realization of net pension assets, among others. Estimates and
assumptions are reviewed periodically and the effects of revisions are reflected in the financial
statements in the period they are determined to be necessary. Actual results could differ from
those estimates.
Statement of Cash Flows
For purposes of the statement of cash flows, the Village considers all short -term investments that
are highly liquid 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.
NOTE 2 -STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Bud
getar y Data
Formal budgetary integration is employed as a management control device during the year for
the General Fund and the Enterprise Fund. The only governmental fund with a legally adopted
annual budget is the General Fund. This budget is adopted on a basis consistent with generally
accepted accounting principles. Except for budgeting capital expenditures and not budgeting for
depreciation, the annual appropriated budgets for the Enterprise Funds are adopted on a basis
consistent with generally accepted accounting principles. For budgeting purposes, current year
encumbrances are not treated as expenditures.
34
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 2 — STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
A. Budgetary Data (Continued)
The procedures for establishing budgetary data are as follows:
• In July of each year, the Village Manager submits a proposed operating budget to the
Council for the next fiscal year commencing the following October 1St. The proposed
budget includes expenditures and the means of financing them.
• During the months of July, August and September, the Council holds public meetings to
obtain taxpayer comments.
• Upon completion of the public hearings and prior to October Is', a final operating budget
is legally enacted through the passage of an ordinance. Estimated beginning fund
balances are considered in the budgetary process.
• The Village Manager is authorized to transfer budgeted amounts up to $10,000. Any
change to the total fund expenses must be approved by the Village Council.
• Appropriations along with encumbrances lapse on September 30th.
Budgeted amounts are as originally adopted, or as amended by appropriate action. During the
year, several supplementary appropriations were necessary.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g. purchase
orders or contracts) outstanding at year end are reported as reservations of fund balances and do
not constitute expenditures or liabilities because the commitments will be reappropriated and
honored during the subsequent year. The General Fund had $150,373 and the Capital Projects
Fund had $123,096 in outstanding encumbrances at year -end.
B. Property Taxes
Under Florida law, the assessment of all properties and the collection of all county, municipal,
and school board property taxes are consolidated in the offices of the County Property Appraiser
and the County Tax Collector. All property is reassessed according to its fair market value on
January 1 of each year and each assessment roll is submitted to the State Department of Revenue
for review to determine if the assessment rolls meet all of the appropriate requirements of State
law. The laws of the State regulating tax assessment are also designed to assure a consistent
property valuation method statewide. State Statutes permit municipalities to levy property taxes
at a rate of up to 10 mills.
35
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 2 — STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
B. Property Taxes (Continued)
The tax levy of the Village is established by the Council prior to October 1St 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
district tax requirements. The millage rate assessed by the Village for the year ended September
30, 2014, was 6.8731 ($6.8731 for each $1,000 of assessed valuation).
Taxes may be paid less a 4% discount in November or at declining discounts each month through
the month of February. All unpaid taxes become delinquent on April 1 following the year in
which they are assessed. Delinquent taxes on real property bear interest at 18% per year. On or
prior to June 1St following the tax year, certificates are offered for sale for all delinquent taxes on
real property.
After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer.
The certificate holder may make application for a tax deed on any unredeemed tax certificate
after a period of two years. The County holds unsold certificates. Delinquent taxes on personal
property bear interest at 18% per year until the tax is satisfied either by seizure and sale of the
property or by the five -year statute of limitations. At September 30, 2014, unpaid delinquent
taxes are not material and have not been recorded by the Village.
NOTE 3 — DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2014, the carrying amount of the Village's deposits (including fiduciary
funds) was $5,742,044, and the bank balances totaled $5,665,546. In addition to insurance
provided by the Federal Depository Insurance Corporation, deposits are held in banking
institutions approved by the State Treasurer of the State of Florida to hold public funds. Under
Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer
requires all Florida qualified public depositories to deposit with the Treasurer or other banking
institution eligible collateral. In the event of failure of a qualified public depository, the
remaining public depositories would be responsible for covering any resulting losses. The
Village's deposits at year end are considered insured for custodial credit risk purposes.
The Village pools idle cash from all funds for the purpose of increasing income through
investment activities. Investment income from the pool is allocated back to the respective funds
based on each fund's equity in the pool with the exception of the Capital Projects Fund and the
special revenue funds.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments
The State Board of Administration is part of the Local Governments 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
Governments 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 for a 2a -7 fund.
The State Board of Administration is divided between two separate pools. Florida PRIME,
(Local Government Surplus Funds Trust Fund Investment Pool) consists of all money market
appropriate assets and Pool B, (Surplus Funds Trust Fund) consists of assets that either defaulted
on a payment, paid more slowly than expected, and /or had any significant credit and liquidity
risk. At September 30, 2014, all the assets from Pool B were liquidated.
At September 30, 2014, Florida PRIME was assigned a "AAA(m)" principal stability fund rating
by the Standard and Poor's Ratings. Florida PRIME is considered a SEC 2a7 -like fund, thus, the
account balance should also be considered its fair value.
The weighted average days to maturity (WAM) of Florida PRIME at September 30, 2014, was
39 days. A portfolio's WAM reflects the average maturity in days based on final maturity or
reset date, in the case of floating rate instruments. WAM measures the sensitivity of Florida
PRIME to interest rate changes.
As of September 30, 2014, the Village had $490,454 invested in Florida PRIME. Additional
information regarding the Local Government Surplus Funds Trust Fund may be obtained from
the State Board of Administration.
The American Core Realty Fund, LLC is an alternative investment vehicle valued using the net
asset value (NAV) provided by the investment manager of this fund. The NAV is based on the
value of the underlying assets owned by the fund minus its liabilities and then divided by the
number of shares or percentage of ownership outstanding. The NAV's unit price is quoted on a
private market that is not active; however, the unit price is based on underlying investments
which are traded on an active market.
The values of this alternative investment is not necessarily indicative of the amount that could be
realized in a current transaction. The fair value may differ significantly from the value that would
have been used had a ready market for the underlying fund existed, and the differences could be
material. Future confirming events will also affect the estimates of fair value and the effect of
such events on the estimated fair value could be material.
37
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
As of September 30, 2014, the Village
held the following investments:
Moody's
Weighted
Credit
Fair
Average
Rating
Value
Maturity
Governmental Funds:
Wells Fargo municipal money
market fund
N/R $
150,923
N/A
State Board of Administration
Florida PRIME
AAA(m)
490,454
39 days
Money Market Funds
N/R
2,564,129
N/A
Commercial Paper
P -1
399,565
33 days
U.S. Government and Agency
Obligations
Aaa
1,485,040
2.07 yrs.
U.S. Treasury Notes
Aaa
4,764,526
1.95 yrs.
Municipal Bonds
Aa3
120,492
2.09 yrs.
Corporate Bonds
Aa2 to A2
1,568,745
1.76 yrs.
Fiduciary Funds:
Money Market Funds
N/R
1,921,609
N/A
GNMA, FNMA, FHLMC
Pools
N/R
350,735
19.16 yrs.
U.S. Government Agencies
Aaa
615,400
3.03 yrs.
Collateralized Mortgages
Aaa
98,170
33.46 yrs.
Corporate Bonds
Aaa to Baal
2,496,523
6.38 yrs.
Municipal Bonds
Aa3 to Aa2
220,970
17.53 yrs.
Domestic Common Equity
Securities
N/R
8,431,878
N/A
International Common Equity
Securities
N/R
1,382,126
N/A
Equity Mutual Funds
N/R
4,683,566
N/A
Fixed Income Mutual Funds
N/R
7,106,151
N/A
Real Estate Investment Fund
N/R
1,254,827
N/A
Total investments
$40,105,829
(1) Credit rating by Standard & Poor's
Investments are held in the governmental and fiduciary funds.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Interest rate risk — Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. Generally, the longer the time to maturity, the greater the
exposure to interest rate risks.
The Village limits its exposure to fair value losses resulting from rising interest rates by
structuring the investment portfolio so that the securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to
maturity; and investing operating funds primarily in short -term securities, money market mutual
funds, or similar investment pools unless it is anticipated that long -term securities can be held to
maturity without jeopardizing the liquidity requirements. The Retirement Funds do not have a
formal investment policy that limits investment maturities as a means of managing exposure to
fair value losses arising from increasing interest rates.
The Village's investment in asset backed securities consist of mortgage pass - through securities
based on pools of residential home mortgage loans which are subject to prepayments and
therefore highly sensitive to changes in interest rates.
Custodial credit risk — For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Village will not be able to recover the value of its investments
that are in the possession of an outside party. At September 30, 2014, all investments were
insured or collateralized, except the Village's two pension funds, in which the underlying
securities are held by counterparty, or by its trust department or agent but not in the Village's
name and is uninsured and unregistered. However, all securities are registered in the funds'
names. The investment in mutual funds and investment partnerships are considered unclassified
pursuant to the custodial credit risk categories of GASB Statement No. 3, because they are not
evidenced by securities that exist in physical or book -entry form.
Concentrations of credit risk — Concentration of credit risk is defined as the risk of loss attributed
to the magnitude of an investment in a single user. The Village places no limit on the amount it
may invest in any one issuer, except those in the Fire and Police Retirement Fund. Not more
than five (5) percent of the Fund's assets shall be invested in the common stock or capital stock
of any one issuing company.
Investing in Foreign Markets — Investing in foreign markets may involve special risks and
considerations not typically associated with investing in companies in the United States of
America. These risks include revaluation of currencies, high rates of inflation, repatriation
restrictions on income and capital, and future adverse political, social, and economic
developments. Moreover, securities of foreign governments may be less liquid, subject to
delayed settlements, taxation on realized or unrealized gains, and their prices are more volatile
than those of comparable securities in U.S. companies.
39
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Investing in Real Estate. — The Village is subject to the risks inherent in the ownership and
operation of real estate. These risks include, among others, those normally associated with
changes in the general economic climate, trends in the industry including creditworthiness of
tenants, competition for tenants, changes in tax laws, interest rate levels, the availability of
financing and potential liability under environmental and other laws.
Authorized Investments —The Village has adopted an investment policy that applies to all the
investment activity except the Employees' Pension Funds, which are organized and administered
separately, as listed below, or for funds related to the issuance of debt where there are other
existing policies or indentures in effect for such funds.
The Village is authorized to invest its funds as follows:
1. Interest - bearing checking, savings, and time deposits in banks from the most current top
ten listed "qualified public depositories ", as defined in Chapter 280, Florida Statutes;
with a collateral pledge level of 25% or 50% as established by the State Chief Financial
Officer;
2. Securities and Exchange Commission registered money /market mutual funds with a
minimum credit quality rating of AAAm from S &P or of Aaa -mf from Moody's;
3. Insurance companies with a A.M. Best minimum rating of aaa;
4. Corporate interest notes with a minimum credit quality rating of A- from S &P or of A3
from Moody';
5. Commercial paper with a minimum credit quality rating of A -I from S &P or of P -I from
Moody's;
6. State and /or Local Government Taxable and /or Tax - Exempt Debt with a minimum credit
quality rating of A- from S &P or of A3 from Moody's for long term debt and a minimum
credit quality rating of A -2 from S &P or of VMIG2 from Moody's for short term debt;
7. 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; provided all components in each pool must satisfy the
appropriate pre - qualification parameters noted for that institution;
8. Direct obligations of the United States Treasury;
9. Federal agencies and instrumentalities.
.X
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
The Village General Employees' Retirement Fund is authorized to invest its funds as follows:
1. Interest - bearing time deposits in qualified public depositories, as defined in Chapter 280,
Florida Statutes;
2. 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;
3. Securities and Exchange Commission registered money market funds with the highest
credit quality rating from a nationally recognized rating agency minimum credit quality
rating of A -1 from S &P or P -1 from Moody's;
4. Obligations issued by the U.S. Government or obligations guaranteed by agencies or
instrumentalities of the U.S. Government;
5. Foreign Securities, including convertible bonds, convertible preferred issues and
preferred stock;
6. Equities, including publically traded REITS, commodities, convertible bonds, convertible
preferred issues and preferred stock. Foreign security convertibles are limited to those
that settle in U.S. dollars and are traded on one or more of the nationally recognized
national exchanges.
7. Bonds or any other evidence of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States, any state or organized territory of the
United States, or the District of Columbia, provided the issues are traded on any one (1)
or more of the recognized national stock exchanges or over the counter and holds a
minimum credit rating of BBB from S &P or Baa from Moody's, except that up to 20% of
the fixed income portfolio may be held in securities that do not meet this criteria. The
weighted average quality rating of the portfolio will be A or better and the effective
duration of the portfolio shall be kept within 20% of Barclays Aggregate Index;
8. Comingled stock, bond or money market funds.
9. 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;
10. Other investments authorized by law or by ordinance by the Village.
41
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
Investments of the Fire and Police Retirement Fund can consist of the following:
1. Time or savings accounts of a national bank, a state bank insured by the Federal Deposit
Insurance Corporation, or a savings, building and loan association insured by the Federal
Deposit Insurance Corporation;
2. Obligations issued by the U.S. Government, or an agency or instrumentality of the U.S.
Government, as well as obligations guaranteed by agencies or instrumentalities of the
U.S. Government, including mortgage- related or asset - backed securities;
3. Bonds, stocks, or any other evidence of indebtedness issued or guaranteed by a
corporation organized under the laws of the United States, any state or organized territory
of the United States, or the District of Columbia, provided:
a. The corporation is listed on any one (1) or more of the recognized national stock
exchanges and holds a rating in one of the three (3) highest classifications by a
major rating service; and
b. The Board shall not invest more than five (5) percent of its assets in the common
stock, capital stock, bonds or indebtedness of any one (1) issuing company, nor
shall the aggregate investment of in any one (1) issuing company exceed five (5)
percent of the outstanding capital stock of that company, nor shall the aggregate
of its investments in equities at cost exceed sixty (60) percent of the pension
funds' assets;
4. Notwithstanding any provision of this section to the contrary, the Board is specifically
authorized to invest in foreign securities to the extent authorized by Sections 175.071(1)
and 185.06(1)(b), Florida Statutes;
5. Fixed income investments defined as preferred issues and fixed income securities
provided all issues shall meet or exceed S &P's A or Moody's A credit rating;
6. Money market funds, defined as fixed income securities having a maturity of less than
one year provided all issues shall meet or exceed S &P's Al or Moody's P1 credit rating;
7. Bonds issued by the State of Israel;
8. Purchase in commingled real estate funds.
42
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
A reconciliation of deposit and investments as shown on the statement of net position and
statement of fiduciary net position for the Village is as follows:
By Category
Deposits $ 5,742,044
Petty cash 6,150
Investments 40,105,829
Total deposits and investments $45,854,023
Presented in the statement of net position
Governmental activities
Cash and cash equivalents
$7,375,792
Restricted cash and cash equivalents
180,755
Investments
8,387,482
Business -type activities
Cash and cash equivalents
832,217
Total statements of net position
16,776,246
Presented in the statement of fiduciary net
position
Pension trust funds
Cash and cash equivalents
2,081,371
Investments
26,640,346
Agency funds
Cash and cash equivalents
356,060
Total fiduciary funds
29,077,778
Total deposits and investments $45,854,023
43
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 4 — RECEIVABLES
Receivables at September 30, 2014, were as follows:
General
Ending
Fund
Utility franchise fees & taxes
$ 367,041
Conroy Drive assessment
20,046
Other accounts receivable
65,538
Total accounts receivable
$ 452,625
NOTE 5 — CAPITAL ASSETS
Country
Club Total
$ $ 367,041
20,046
19,687 85,225
$ 19,687 $ 472,312
Capital Assets activity for the year ended September 30, 2014, was as follows:
Primary Government
Governmental Activities:
Capital assets not being depreciated:
Land
Construction in progress
Capital assets being depreciated:
Buildings
Improvements
Machinery and equipment
Vehicles
Total at historical cost:
Less accumulated depreciation for:
Buildings
Improvements
Machinery and equipment
Vehicles
Total accumulated depreciation
Governmental activities capital
assets, net
Beginning
Ending
Balance
Additions
Deletions
Transfers
Balance
$ 2,055,889
$
$
$
$ 2,055,889
739,889
182,507
(834,214)
88,182
9,303,120
(36,000)
9,267,120
12,943,517
908,957
(24,493)
13,827,981
2,652,020
527,439
(144,167)
3,035,292
3,889,907
312,597
(337,332)
3,056
3,868,228
31,584,342
1,931,500
(1,376,206)
3,056
32,142,692
(5,001,285)
(265,679)
34,959
(5,232,005)
(6,108,933)
(884,072)
24,493
(6,968,512)
(1,913,964)
(180,701)
129,793
(1,964,872)
(3,128,194)
(216,457)
337,331
(3,056)
(3,010,376)
(16,152,376)
(1,546,909)
526,576
(3,056)
(17,175,765)
$ 15,431,966
$ 384,591
$ (849,630)
$
$ 14,966,927
Im
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 5 — CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government
Public safety
Public works
Community development
Leisure services
Total depreciation expense, governmental activities
Business -type activities:
Capital assets not being depreciated:
Land
Construction in progress
Capital assets being depreciated:
Buildings
Improvements
Machinery and equipment
Vehicles
Total at historical cost:
Less accumulated depreciation for:
Buildings
Improvements
Machinery and equipment
Vehicles
Total accumulated depreciation
Business -type activities capital
assets, net
Intangible Assets
Beginning
$ 1,051,311
$ 103,649
363,697
641,671
15,013
422,879
$1,546,909
Ending
Additions Deletions Transfers Balance
$ $ $ $ 1,051,311
1,405,035
1,405,035
6,095,930
6,095,930
372,932
(2,386)
370,546
400,402
8,120
(3,056)
405,466
9,325,610
8,120
(2,386)
(3,056)
9,328,288
(1,010,803)
(26,655)
(1,037,458)
(2,252,321)
(307,684)
(2,560,005)
(227,828)
(48,183)
2,386
(273,625)
(110,721)
(94,322)
3,056
(201,987)
(3,601,673)
(476,844)
2,386
3,056
(4,073,075)
$ 5,723,937
$ (468,724)
$
$
$ 5,255,213
The intangible asset consists of the right to the availability and use of reclaimed water resulting
from an agreement with Seacoast Utility Authority. The asset had an original value of $50,377
and is being amortized on a straight line basis over the period of the expected benefit of ten
years.
45
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 6 — LONG TERM LIABILITIES
Change in Long -Term Liabilities
Long -term liability activity for the year ended September 30, 2014, was as follows:
Governmental activities
Claims and settlements
OPEB (see Note 13)
Compensated absences
payable
Total
Business -type activities:
Loans payable
Capital leases
OPEB (see Note 13)
Compensated absences
payable
Total
Beginning Ending
Balance Additions Reductions Balance
Amount
Due
Within
$ 50,000 $ $
$ 50,000 $
1,552,830 403,047
1,955,877
1,190,461 1,191,022 (1,172,117)
1,209,366 903,298
$ 2,793,291 $ 1,594,069 $ (1,172,117)
$ 3,215,243 $ 903,298
$ 3,357,875 $
$ (260,950)
$ 3,096,925
$ 271,920
396,055
(121,584)
274,471
126,705
64,322 20,678
85,000
26,078 8,589
(9,229)
25,438
17,572
$ 3,844,330 $ 29,267
$ (391,763)
$ 3,481,834
$ 416,197
Governmental activities other post employment benefit obligations and compensated absences
are expected to be paid out of the general fund.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 6 — LONG TERM LIABILITIES (Continued)
Loans Payable
$4,893,673 Promissory Notes
The Village Council adopted Resolution No. 23 -2006 authorizing the issuance of a note in the
amount of $4,893,673 to finance certain capital expenditures relating to the municipal golf
course and country club. The revenues of the Country Club are pledged to secure the loan.
Principal and interest payments are due semi - annually in the amount of $199,079, with a final
maturity date of April 1, 2024. The interest rate on the loan is 4.11% and is subject to
adjustment in the event of taxability of the interest on this note. As of September 30, 2014, the
principal amount outstanding was $3,096,925 and was for the purpose of business -type activities.
Annual debt service requirements to maturity are as follows:
Business -type activities:
Year Ending Principal
2015 $ 271,920
2016 283,040
2017 295,287
2018 307,719
2019 320,677
2020-2024 1,618,282
$ 3,096,925
$485,847 Capital Lease
Interest
$ 126,239
115,119
102,872
90,440
77.482
Total
$ 398,159
398,159
398,159
398,159
398,159
173.390 1,791,672
$ 685,542 $ 3,782,467
The Village entered into a three year capital lease agreement for the purpose of financing the
lease - purchase of $485,847 of equipment for the Country Club in November 2012. Principal and
interest payments are due monthly, with a final maturity date in January 2016. The final
payment includes a balloon payment of $115,900. As of September 30, 2014, the principal
amount outstanding was $274,471 and the net book value of the equipment was $261,345. The
rate used to impute interest was 4 %.
Annual debt service requirements to maturity are as follows:
Year Ending
2015
2016
Principal
$ 126,705
147,766
$ 274,471
Interest Total
$ 8,957 $ 135,662
1,799 149,565
$ 10,756 $ 285,227
47
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 6 — LONG TERM LIABILITIES (Continued)
Claims and Settlements
Effective October 1, 2006, the Village discontinued its participation in the Southeast Risk
Management Association ( SERMA) and joined the Florida Municipal Insurance Trust (FMIT).
However, as a former participant in SERMA, the Village is liable for claims incurred through
September 30, 2006. In the fiscal year ending September 30, 2014, SERMA was dissolved and
the outstanding claims were transferred to the Village's current workman's compensation
administrator. As part of the dissolution, the Village received $33,846 from SERMA as its
portion of the claims reserve balance, this was recorded as an accrued liability in the General
Fund. At this time, the Village believes that the $33,846 recorded in the General Fund along
with the $50,000 recorded as a long -term liability is adequate to cover the outstanding claims.
NOTE 7 — RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts: theft of, damage to, and
destruction of assets; errors and omissions; and natural disasters.
The Village currently reports all of its risk management activities in the General Fund. Claims
expenditures and liabilities are reported when it is probable that a loss has occurred and the
amount of the loss can be reasonably estimated. These losses include an estimate of claims that
have been incurred but not reported.
The Village is covered by Florida Statutes under the Doctrine of Sovereign Immunity which
effectively limits the amount of liability of municipalities to individual claims of
$200,000/$300,000 for all claims relating to the same incident. There have been no significant
reductions in insurance coverage in the prior year. No settlements exceeded insurance coverage
for the past three years.
.•
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS
The Village maintains the following two separate single employer defined benefit plans: Village
of North Palm Beach Fire and Police Retirement Fund (F &P), covering firefighters and police
officers, and Village of North Palm Beach General Employees Retirement Fund (GERF),
covering substantially all other full -time Village employees. Both plans are reported as pension
trust funds and included as part of the Village's reporting entity. The Police and Fire Fund issued
separate stand -alone financial statements for the year ended September 30, 2014, the report may
be obtained from the Village Clerk, at the Village of North Palm Beach, 501 U.S. Highway 1,
North Palm Beach, Florida 33408. The General Employees Plan does not issue separate
financial statements.
Each plan has its own board that acts as plan administrator and trustee: The Fire and Police
Retirement Fund Board of Trustees consists of five members (5); four (4) of whom were elected
by a majority of the members of the plan. Two (2) of the elected members are certified
firefighters of the Village and two (2) are certified police officers of the Village. The fifth
member of the board is a legal resident of the Village and is appointed by the Village council.
The General Employees Retirement Board consists of five members (5); two (2) of whom were
employees elected by a majority of the members of the plan, two (2) of the members is a legal
resident of the Village and appointed by the Village council, the two (2) council appointed
members of the Board shall appoint a member of the general public who has never been
employed by the Village to serve as the fifth member of the Board. Each plan's assets may only
be used for the payment of benefits to the members and beneficiaries of the plan in accordance
with the terms of each plan document. The costs of administering each plan are financed in the
appropriate pension trust fund.
SUMMARY OF SIGNIFICANTACCOUNTING POLICIES
All Retirement Plans
Basis of Accounting. The retirement plans are reported on the accrual basis of accounting. Plan
member and state contributions are recognized as revenues in the period that the contributions
are due. Employer contributions to each plan are recognized when due and the employer has
made a formal commitment to provide the contributions. Benefits and refunds are recognized
when due and payable in accordance with the terms of each plan.
Method Used to Value Investments. Investments are reported at fair value and are managed by
third party money managers. The Village's independent custodians and individual money
managers price each instrument using various third party pricing sources.
Investments Concentrations. There were no investments representing concentrations of 5% or
more of net plan assets in investments that are not issued or guaranteed by the U.S. government.
..
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
PLAN DESCRIPTION. INVESTMENT AND CONTRIBUTION INFORMATION
The following schedule is provided for general information purposes only and is derived from
the respective actuarial reports and Village information for the two retirement plans. Plan
participants should refer to the appropriate source documents for more complete information on
the plans.
Plan Description:
Authority
Asset Valuation:
Reporting
Legal Reserves
Long -Term Receivable
Internal /Participant Loans
General Employees' Fire and Police
Village Ordinance Village Ordinance /State
Fair Value Fair Value
None None
None None
None None
Membership of each plan consisted of the following at October 1, 2013 for the General
Employees' Retirement Fund and at October 1, 2014 for the Fire and Police Retirement Fund:
GERF F &P
Active Participants:
Vested 44 16
Non - vested 6 36
Retirees and Beneficiaries receiving benefits 18 25
Terminated vested members 45 7
Total 113 84
General Employees' Retirement System
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2010 -07. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code. The Plan provides retirement benefits as well as death
benefits. All full time general employees who are not sworn police officers or firefighters shall
become members of the system on October 1St following completion of 12 months of
employment as a condition of employment. For those employees retired before February 1,
1982, those employees hired after September 30, 2000, or those employees hired before October
1, 2000, who elect to contribute an extra 2 %, a 3% Cost of Living increase is paid annually from
the Plan. Authority to establish and amend the benefit provisions of the plan rests with the
Village Council.
50
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
All benefits vest based on the following years of credited service.
Years of
Credited Service Vested %
Under 5 0%
5 or 6 50%
7 or 8 75%
9 or more 100%
Employees become eligible for normal retirement benefits after attaining the age of 60 and
completing nine years of credited service, or attaining the age of 65 (depending on employee
contribution rate). The normal retirement benefit consists of a life annuity, options available,
(subject to cost of living increases not to exceed 3% a year), of either 2 %, 2.25 %, or 2.5%
(depending on employee contribution rate) of Average Monthly Earnings (AME) times credited
service up to 20 years plus 1% of AME times credited service over 20 years. Early retirement
benefits can be received at age 55. The benefit is determined as for normal retirement and
payable at normal retirement date or payable immediately after reduction by 5% for each year by
which the benefit commencement date precedes the normal retirement date. If an active member
dies, his beneficiary receives a refund of member contributions without interest. For a member
who is age 55 and has at least five years of service but who dies before commencement of
retirement benefits, a monthly benefit is payable to the designated beneficiary; the benefit is
calculated as though the member had retired on his date of death and payable according to the
option elected by the employee. For an active member who has at least five years of credited
service and dies prior to reaching normal retirement date, a benefit equal to his vested accrued
benefit will be paid to his beneficiary for ten years. If an employee terminates his employment,
he is entitled to the following:
- With less than five years of credited service, a refund of member contributions
without interest and no other benefit.
- With five or more years of credited service, a refund of member contributions, the
vested accrued benefit payable at normal retirement date or at any time after age 55
is attained, with the benefit being subject to the same reduction as for early
retirement benefits. The vesting schedule is listed above.
"Average Monthly Earnings" is the average during the 5 years within the last 10 years of
employment which produces the highest average.
51
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
"Credited Service" consists of the total number of years and fractional parts of years of actual
service with the Village and shall apply to an employee whose employment is terminated with
the Village and who recommences fulltime employment within two years from the date of
termination.
Asset Allocation. The plan's adopted asset allocation policy as of September 30, 2014, is as
follows:
Asset Class Target Allocation
Domestic equity 45%
International equity 15
Domestic bonds 40
Total 100%
Rate of Return. For the year ended September 30, 2014, the annual money- weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 10.50 percent
adjusted for the changing amounts actually invested.
Contributions. General employees may contribute 6 %, 4 %, 2% or 0% of earnings as elected by
the employee, with the retirement benefit received being based on the amount contributed. The
Village is required to contribute the amount necessary to fund the Plan properly according to the
Plan's actuary. Contribution requirements of plan members and the Village are established and
may be amended by the Village Council.
Fire and Police Retirement System
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2014 -11. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code. The plan provides retirement benefits as well as death
and disability benefits. All benefits vest after ten years of credited service. All fulltime police
officers or firefighters are eligible for membership immediately upon hire. Previously, members
were not eligible until October 1St following completion of 12 months of employment. Cost of
living adjustments (COLA) are provided annually each October 1, to reflect changes in CPI
(subject to maximum increases or decreases of 3% per year). Authority to establish and amend
the benefit provisions of the plan rests with the Village Council. Employees become eligible for
normal retirement benefits after attaining the age of 55, or the date on which the member attains
age 52 and 25 credited years of service. Previously, employees became eligible for normal
retirement benefits after attaining the age of 55, only. The normal retirement benefit consists of
52
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Plan Description. (Continued)
ten years certain and life thereafter, with other options available, (subject to cost of living
adjustments not to exceed 3% a year), of 2.5% of AME times the years of credited services, with
a maximum benefit of 60% of AME. Members are eligible for non - service connected disability,
after ten years of credited service and a total and permanent disability. For service connected
disability, a total and permanent disability with no service requirement, the disability benefit
consists of a ten year certain and life annuity that can be provided by the single -sum value of the
member's accrued pension benefit, but is at least 42% of AME for service connected disability
and at least 25% of AME for non - service connected disability. See the description of the
General Employees' Retirement System for the remainder of the benefits, except that early
retirement and termination benefits for vested members can be received at age 50.
Asset Allocation. The plan's adopted asset allocation policy as of September 30, 2014, is as
follows:
Asset Class
Target Allocation
Domestic equity 50%
International equity 10
Domestic bonds 30
Real estate 10
Total 100%
Rate of Return. For the year ended September 30, 2014, the annual money- weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 10.00 percent
adjusted for the changing amounts actually invested.
Contributions. Firefighter members are required to contribute 2% of their basic compensation to
the plan. Police Officer members are required to contribute 2.67% for the fiscal year ended
September 30, 2014; 3.33% for the fiscal year ended September 30, 2015, and 4.00% thereafter
of their basic compensation to the plan. The Village is required to contribute the remaining
amount to fund the plan using the Entry Age Actuarial Cost Method. Contribution requirements
of plan members and the Village are established and may be amended by the Village Council.
The Florida Constitution requires local governments to make the actuarially determined
contribution. The Florida Division of Retirement reviews and approves each local government's
actuarial report prior to its being approved for use for funding purposes. Additionally, the State
collects locally authorized insurance premium surcharges which can only be distributed after the
State has ascertained that the local government has met its actuarial funding requirement for the
then most recently completed fiscal year. Contributions to the Plan from the State of Florida
totaled $321,230 during the fiscal year ended September 30, 2014.
53
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Net Pension Liability. The components of net pension liability of the Village on September 30,
2014 were as follows:
Total pension liability
Plan fiduciary net position
Village's net pension liability
Plan fiduciary net position as a
percentage of total pension liability
General Fire and
Employees Police
$ 135812,555 $ 19,480,362
(11,929,879) (16,801,946)
$ 1,882,676 $ 2,678,416
86.37% 86.25%
Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as
of October 1, 2013 updated to September 30, 2014 using the following actuarial assumptions
applied to the 9/30/14 measurement period.
Inflation
Salary increases
Investment rate of return
Mortality
General Employees
4.00%
5.50%
7.50%
RP -2000 Combined
Healthy Participant
Mortality Table for
males and females with
mortality improvement
projected to all future
years after 2000 using
Scale AA
Fire and Police
4.00%
6.00%
7.90%
RP -2000 Table with no
projection - Based on a
study of over 650 public
safety funds, this table
reflects a 10% margin for
future mortality
improvements. (Disabled
lives set forward 5 years)
The long -term expected rate of return on pension plan investments was determined using a
building -block method in which best - estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These ranges are combined to produce the long -term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of arithmetic real rates of return for each major
asset class included the pension plan's target asset allocation as of September 30, 2014, are
summarized in the following table:
54
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Asset Class
Domestic equity
International equity
Domestic bonds
Real estate
Long -Term Expected Real Rate of
Return
General
Employees
7.00%
7.00%
2.50%
N/A
Fire and
Police
8.25%
8.25%
3.00%
6.25%
Discount Rate. The discount rate used to measure the total pension liability was 7.5 percent for
the General Employees Retirement Fund and 7.90 percent for the Fire and Police Retirement
Fund. The projection of cash flows used to determine the discount rates assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate. Based on those assumptions, the pension plans' fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long -term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following
presents the net pension liabilities of the Village, calculated using the discount rates above, as
well as what the Village's net pension liabilities would be if it were calculated using a discount
rate that is one percentage -point lower or one percentage -point higher than the current rate.
General Employees' Retirement System
Current
Discount
1% Decrease Rate 1% Increase
6.50% 7.50% 8.50%
Village's net pension liability 3.851.148 1.882.676 $ 241,095
Fire and Police Retirement Svstem
Current
Discount
1% Decrease Rate 1% Increase
6.90% 7.90% 8.90%
Village's net pension liability 5.425.053 2.678.416 $ 412,612
55
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Annual Pension Cost and Net Pension Obligation. The Village's 2014 annual pension cost and
actual contributions for each plan are below. The required contributions were determined as part
of the actuarial valuation for each plan. State law allows the Village to use a portion of the State
contribution to offset the Village's pension cost for the Fire and Police Retirement Fund.
Components ofAnnual Pension Cost and Net Pension Obligation
General Employees' Retirement Fund
Fire and Police Retirement Fund
Annual
Required
Eligible
Pension
Village
State
Cost
Contribution
Contribution
$ 577,627
$562,953
N/A
$1,181,316
$943,634
$230,695
The following schedule was determined as part of the October 1, 2013, actuarial valuation for the
General Employees' and the October 1, 2014, actuarial valuation for the Fire and Police
Retirement Plans.
Three -Year Trend Information
General
Annual
Employees'
Fire and Police
Annual required contribution (ARC)
$ 562,509
$ 1,173,930
Interest on net pension obligation (NPO)
(22,319)
(18,704)
Adjustment to ARC
37,437
26,090
Annual pension cost
577,627
1,181,316
Actual contributions
562,953
1,174,329
Decrease in NPO
14,674
6,987
NPO at beginning of year
(297,591)
233 799)
NPO at end of year
jaQ=91J7
(226,812)
Three -Year Trend Information
56
Annual
Percentage
Net Pension
Year
Pension
Annual
of APC
Obligation
Ended
Cost (APC)
Contribution
Contributed
(Asset)
General
Employees'
9/30/12
$ 639,460
$ 625,209
97.8%
$ (311,218)
9/30/13
5925589
579,118
97.7%
(297,591)
9/30/14
5775627
562,953
97.5%
(282,917)
Fire and
Police
9/30/12
9765471
969,204
99.3%
(241,936)
9/30/13
1,047,307
1,039,170
99.2%
(233,799)
9/30/14
1,181,316
1,174,329
99.4%
(226,812)
56
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
The following are the actuarial methods and significant actuarial assumptions for the net pension
obligation:
Valuation date
Actuarial Cost Method
Amortized Method
Remaining Amortization
Period
Asset Valuation Method
Actuarial assumptions:
Investment rate of return*
Projected salary increase*
*Includes inflation at
Cost of living adjustments
General Employees' Fire and Police
10/1/2013
Frozen Entry Age
Level percent closed
27 years
Five year smooth market.
7.5%
5.5%
4%
3% for those retired before
2/1/82 or who contribute
an extra 2 %.
10/1/2014
Aggregate
N/A (1)
N/A (1)
Five year smooth market.
7.9%
6%
4%
3%
(1) The aggregate actuarial cost method does not identify or separately amortize unfunded
actuarial liabilities.
57
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 9 — PENSION PLAN FINANCIAL INFORMATION
Generally accepted accounting principles (GAAP) requires that financial statements for
individual pension plans be presented in the notes to the financial statements of the primary
government if separate GAAP financial reports have not been issued. The General Employees'
pension fund does not have a separate GAAP report issued, and the financial information
September 30, 2014, is presented below.
STATEMENT OF FIDUCIARY NET POSITION
General
Employees'
PPncinn
Assets
Cash and cash equivalents
$ 153,656
Investments:
Equity mutual funds
9,007,221
Fixed income mutual funds
2,748,417
Accounts receivable /accrued interest
and dividends
30,294
Total assets
11,939,588
Liabilities
Accounts payable
9,709
Net position
Held in trust for pension benefits and
other purposes
$11,929,879
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 9 — PENSION PLAN FINANCIAL INFORMATION (Continued)
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
Additions
Contributions
Employer
Plan members
Total contributions
Investment earnings
Dividends and interest
Net increase in the fair value
of investments
Less investment expense
Total investment earnings
Total additions
Deductions
Administration
Benefits
Refund of contributions
Total deductions
Change in net position
Net position - beginning
Net position - ending
NOTE 10 — ON- BEHALF PAYMENTS
General
Employees'
Pension
$ 562,953
142,609
705,562
319,236
789,337
(36,564)
1,072,009
1,777,571
17,171
221,537
42,137
280,845
1,496,726
10.433.153
$ 11,929,879
The state makes a contribution to the Fire and Police Officers' Retirement System from the
firefighters' and police officers' Insurance Premium Tax. For the fiscal year ended September
30, 2014, $321,230 was recorded as revenues and expenditures in the On- Behalf Pension
Contribution Special Revenue Fund relating to on- behalf payments received from the state.
59
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 11 — DEFINED CONTRIBUTION PLAN
Effective October 1, 2006, all employees of the Village may participate in one of three Money
Purchase Plans that are qualified Defined Contribution Plans adopted under the provisions of
Internal Revenue Code Section 401(a). The three pension plans include Directors, General
Employees, and Municipal Employees. The defined contribution plans are administered by
International City /County Management Association and Retirement Corporation (ICMA -RC).
The ICMA -RC is a nonprofit corporation organized and existing under the laws of the State of
Delaware. Contribution requirements of employees' and the Village are established and may be
amended by the Village Council.
The vesting period for each defined contribution plan is five years, with a vesting of zero percent
in the first year, and a vesting of twenty -five percent for each year thereafter. While the plans
will not provide for retroactive funding, the vesting period shall run from each employee's
original date of hire. No loans are permitted by the plan. The normal retirement age for the plan
shall be age sixty. There is no waiting period for participation in the plan. The minimum age for
participation is eighteen.
The Village contributes 15% of participant earnings for the plan year. Earnings include regular
and bonus compensation, but do not include overtime or commissions. Employee contributions
are voluntary, after -tax contributions that are not matched by the Village. Employees may
contribute 3 %, 5 %, 10 %, or 15% of earnings to the plan. Contributions are remitted to the trusts
every payroll period.
Because the Village has little administrative involvement and does not perform the investing
function for funds in the plans, the Village's activities do not meet the criteria for inclusion in the
fiduciary funds of a government. Consequently, the plans are not included in the Village's financial
statements.
Plan detail for participating employees at September 30, 2014, is listed below:
Directors
Village contributions $100,622
General Municipal
Employees Employees
$113,466
$114,943
Employee contributions $41,266 $31,085 $43,996
•1
Total
$329,031
$116,347
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 12 — DEFERRED COMPENSATION PLAN ASSETS
Employees of the Village may participate in a deferred compensation plan adopted under the
provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with Respect to
Service for State and Local Governments).
The deferred compensation plan is available to all employees of the Village. Under the plan,
employees may elect to defer a portion of their salaries and avoid paying taxes on the deferred
portion until the withdrawal date. The deferred compensation amount is not available for
withdrawal by employees until termination, retirement, death, or unforeseeable emergency. A third
party administers the deferred compensation plan.
In 1998, the Village Adopted GASB -32, Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans. The Village modified its Deferred
Compensation Plan to conform with the changes in the Internal Revenue Code brought about by the
Small Business Job Protection Act of 1996 (the "Act"). The Act requires that eligible deferred
compensation plans established and maintained by governmental employers be amended to provide
that all assets of the plan be held in trust, or under one or more appropriate annuity contracts or
custodial accounts, for the exclusive benefit of plan participants and their beneficiaries. As a result
of this change, these plan assets are not property of the Village and are not subject to the claims of
the Village's general creditors.
Because the Village has little administrative involvement and does not perform the investing
function for funds in the Plan, the Village's activities do not meet the criteria for inclusion in the
fiduciary funds of a government.
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS
The Village implemented Governmental Accounting Standards Board Statement 45 (GASB 45),
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions, effective October 1, 2008. The Village elected to implement prospectively, and the
change in accounting principle had no effect on changes in net position /fund equity for prior
periods. Retirees of the Village pay an amount equal to the actual premium for health insurance
charged by the carrier, but there is an implied subsidy in the healthcare insurance premium for
retirees because the premium charged for these retirees is the same as the premium charged for
active employees, who are younger than retirees on average. This implied subsidy constitutes
other postemployment benefits (OPEB) under GASB 45.
Plan Description
The Village provides a single employer defined benefit health care plan to all of its employees.
The plan allows its employees and their beneficiaries, to continue to obtain health and dental
benefits upon retirement. The normal retirement age for police and firefighters is 55; the normal
retirement age for all other Village employees is either age 60 or 65, depending on the option
selected by the employee.
61
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
Plan Description (Continued)
The benefits of the plan are in accordance with Florida Statutes, which are the legal authority for
the plan. The plan has no assets and does not issue a separate financial report.
Funding Policy
The Village does not directly make a contribution to the plan on behalf of retirees. Retirees and
their beneficiaries pay the same group rates as are charged to the Village for active employees by
its healthcare provider. However, the Village's actuaries, in their actuarial valuation, calculate
an offset to the cost of these benefits as an Employer Contribution, based upon an implicit rate
subsidy. This offset equals the total age- adjusted costs paid by the Village or its active
employees for coverage of the retirees and their dependents for the year net of the retiree's own
payments for the year.
Annual OPEB Cost and Net OPEB Obligation
The annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution of the employer, an amount actuarially determined in accordance with
GASB Statement No. 45. The annual required contribution represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and to amortize any
unfunded actuarial liabilities over a period not to exceed 30 years.
The annual OPEB cost and the net OPEB obligation for the Village for the current year and the
related information is as follows:
Required contribution rates:
Employer
Pay -as- you -go
Plan members
N/A
Normal cost
$ 322,421
Interest on normal cost
12,897
Amortization
231,486
Interest on amortization
9,259
Annual required contribution (ARC)
576,063
Interest on net unfunded OPEB obligation
64,686
Adjustment to ARC
(93,520)
Annual OPEB cost
547,229
Contributions made
(123,504)
Increase in net OPEB obligation
423,725
Net OPEB obligation October 1, 2013
1,617,152
Net OPEB obligation September 30, 2014
2.040.877
62
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
Trend Information
Funded Status
The funded status of the plan as of most recent actuarial valuation date was as follows:
Actuarial valuation date 10/01/2011
Actuarial accrued liability $3,432,815
Actuarial value of plan assets $
Unfunded actuarial accrued liability (UAAL) $3,432,815
Funded ratio 0.0%
Covered payroll $7,103,304
UAAL as a percentage of covered payroll 48.3%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are comparable with past expectations
and new estimates are made about the future. The schedule of funding progress presented as
required supplementary information following the notes to the financial statements, will present
multi -year trend information that shows whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits. The Village has not
contributed assets to the plan at this time.
Actuarial Methods and Assumptions
Projections of benefits are based on the substantive plan (the plan as understood by the employer
and plan members) and includes the types of benefits in force at the valuation date and the
pattern of sharing benefit costs between the Village and the plan members to that point.
Actuarial calculations reflect a long -term perspective and employ methods and assumptions that
63
Three -Year Trend Information
Percentage of
Fiscal
Annual
Annual
Net
Year
OPEB
OPEB Cost
OPEB
End
Cost
Contributed
Obligati on
09/30/12
$494,457
15.8%
$1,206,113
09/30/13
$520,693
21.1%
$1,617,152
09/30/14
$547,229
22.6%
$2,040,877
Funded Status
The funded status of the plan as of most recent actuarial valuation date was as follows:
Actuarial valuation date 10/01/2011
Actuarial accrued liability $3,432,815
Actuarial value of plan assets $
Unfunded actuarial accrued liability (UAAL) $3,432,815
Funded ratio 0.0%
Covered payroll $7,103,304
UAAL as a percentage of covered payroll 48.3%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are comparable with past expectations
and new estimates are made about the future. The schedule of funding progress presented as
required supplementary information following the notes to the financial statements, will present
multi -year trend information that shows whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits. The Village has not
contributed assets to the plan at this time.
Actuarial Methods and Assumptions
Projections of benefits are based on the substantive plan (the plan as understood by the employer
and plan members) and includes the types of benefits in force at the valuation date and the
pattern of sharing benefit costs between the Village and the plan members to that point.
Actuarial calculations reflect a long -term perspective and employ methods and assumptions that
63
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
Actuarial Methods and Assumptions (Continued)
are designed to reduce short -term volatility in actuarial accrued liabilities and the actuarial value
of assets. Significant methods and assumptions were as follows:
Actuarial valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actual assumptions:
Investment rate of return
Inflation rate
Healthcare cost trend
10/01/2011
Projected Unit Credit
Level dollar, 30 Years, open
30 years
Unfunded
4%
2.75%
6.5% for 2012 decreasing to 4.7% in 2082
NOTE 14 — JOINTLY GOVERNED ORGANIZATION
The Village, through an interlocal agreement with certain other municipalities and Palm Beach
County, created the Seacoast Utility Authority ( "Seacoast ") which provides water and sewer
service to the citizens of each of the participating municipalities and a portion of Palm Beach
County. Seacoast's governing board consists of one member from each participating entity.
Seacoast is an Independent Authority organized under the laws of the State of Florida, and the
Village has no participating equity ownership in Seacoast. The Village paid $155,000 to
Seacoast during the fiscal year for water and sewer service.
NOTE 15 — TRANSFERS
Interfund transfers during the year ended September 30, 2014, are as follows:
Transfer in:
Capital Projects Fund
Nonmajor Governmental funds
Transfer Out:
General Fund
$ 45,500
277,500
The transfers from the General Fund to the other governmental funds were to move restricted
and unrestricted General Fund revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations, including amounts
provided as subsidies or matching funds for various grant programs.
.�
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 16 — CONTRACTS, COMMITMENTS AND CONTINGENCIES
Commitments
On September 17, 2014, the Village entered into an agreement with the City of Palm Beach
Gardens whereby the City of Palm Beach Gardens will provide the Village public safety dispatch
services. The term of the agreement was for two years beginning on October 1, 2014, and
extending through September 30, 2016. The fee for each year under the contract will be based
upon the budget of the North County Dispatch (NCDC) center prorated to each contracting
municipality based on that municipalities cost share. If at the end any contract year a budget
shortfall exists, each contracting municipality shall pay its share of the shortfall. Conversely, if at
the end of any contract year a budget surplus exists, such surplus shall represent a committed
fund balance to be utilized specifically for NCDC budgetary purposes. The Village's estimated
cost for fiscal year ending September 30, 2015 is $332,444.
ContiLygencies
The Village is involved in various litigations and claims arising in the course of operations. It is
the opinion of legal counsel that the likelihood of unfavorable outcome and the amounts of
potential losses cannot be reasonably determined for all claims at this time.
NOTE 17 — ACCOUNTING CHANGE
The Village implemented the following Governmental Accounting Standards Board Statements
during the fiscal year ended September 30, 2014.
In March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets and
Liabilities. GASB 65 establishes accounting and financial reporting standards that reclassify, as
deferred outflows of resources or deferred inflows of resources, certain items that were
previously reported as assets and liabilities. The implementation of this statement resulted in
some of the unearned revenue being recorded as deferred inflows of resources instead of as a
liability.
In March 2012, the GASB issued Statement No. 66, Technical Corrections 2012 an
amendment of GASB Statements No. 10 and No. 62. GASB 66 improves accounting and
financial reporting for a governmental reporting entity by resolving conflicting guidance that
resulted from the issuance of two pronouncements, Statement No. 54, Fund Balance Reporting
and Governmental Fund Type Definitions and Statement No. 62, Codification of Accounting and
Financial Reporting Guidance Contained in Pre November 30, 1989 FASB and AICPA
Pronouncements. The implementation of this statement did not have a significant effect on the
Village's financial statements.
65
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2014
NOTE 17 — ACCOUNTING CHANGE (Continued)
In June 2012, the GASB issued Statement No. 67, Financial Reporting for Pension Plans an
amendment of GASB Statement 25. GASB 67 improves financial reporting by state and local
governmental pension plans through enhanced note disclosures and schedules of required
supplementary information.
NOTE 18 — NEW ACCOUNTING STANDARDS
Below is a brief description and effective date of new accounting standards that could have a
significant impact on the Village.
In June 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting for
Pensions — an amendment of GASB Statement 27. GASB 68 improves financial reporting by
state and local governments for pensions. It also improves information provided by state and
local governmental employers about financial support for pensions that is provided by other
entities. This Statement results from a comprehensive review of the effectiveness of existing
standards of accounting and financial reporting for pensions with regard to providing decision -
useful information, supporting assessments of accountability and inter - period equity, and
creating additional transparency. This statement is effective for the fiscal year ending September
30, 2015. Management is currently evaluating the impact of the adoption of this statement on the
Village's financial statements.
In November 2013, the GASB issued Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date an amendment of GASB Statement No. 68. This
Statement amends paragraph 137 of GASB 68 to require that, at transition, a government
recognize a beginning deferred outflow of resources for its pension contributions, if any, made
subsequent to the measurement date of the beginning net pension liability. The provisions of this
Statement are required to be applied simultaneously with the provisions of GASB 68.
Management is currently evaluating the impact of the adoption of this statement on the Village's
financial statements.
••
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD &A
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2014
Schedule of Fundina Proeress
Other Postemployment Benefits (OPEB)
10/01/08 $ $ 2,741,387 $ 2,741,387 0.0% $ 6,231,104 44.0%
10 /01 /11 $ $ 3,432,815 $ 3,432,815 0.0% $ 7,103,304 48.3%
(1) Projected unit credit
The schedule of funding progress presented above will present multi -year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liability for benefits. The Village has not contributed assets to the plan at this time.
Because the fiscal year ended Septemeber 30, 2009, was the year of implementation of GASB 45, and the
Village elected to apply the statement prospectively, only two years are presented in the schedule at this
time. In future years, required trend data will be presneted.
67
Actuarial
UAAL as a
Actuarial
Accrued
Unfunded
Percentage
Actuarial Value of
Liability
AAL Funded
Covered of Covered
Valuation Assets
(AAL) (1)
(UAAL) Ratio
Payroll Payroll
Date (a)
(b)
(b -a) (a/b)
(c) ((b -a) /c)
Other Postemployment Benefits (OPEB)
10/01/08 $ $ 2,741,387 $ 2,741,387 0.0% $ 6,231,104 44.0%
10 /01 /11 $ $ 3,432,815 $ 3,432,815 0.0% $ 7,103,304 48.3%
(1) Projected unit credit
The schedule of funding progress presented above will present multi -year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liability for benefits. The Village has not contributed assets to the plan at this time.
Because the fiscal year ended Septemeber 30, 2009, was the year of implementation of GASB 45, and the
Village elected to apply the statement prospectively, only two years are presented in the schedule at this
time. In future years, required trend data will be presneted.
67
FIDUCIARY FUNDS
Pension Trust Funds
General Employees Pension Trust Fund
Fire and Police Officers Pension Trust Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2014
General Employees Retirement Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Last Fiscal Year
2014
Total pension liability
Service cost
$ 374,926
Interest
972,865
Benefit payments, including
$ 1,882,676
refunds of employee contributions
(263,674)
Net change in total pension liability
1,084,117
Total pension liability - beginning
12,728,438
Total pension liability - ending (a)
$ 13,812,555
Plan fiduciary net position
$ 1,882,676
Contributions - employer
$ 562,953
Contributions - Eemployees
142,609
Net investment income
1,072,009
Benefit payments, including
refunds of employee contributions
(263,674)
Administrative expenses
(17,171)
Net change in plan fiduciary net position
1,496,726
Plan fiduciary net position - beginning
10,433,153
Plan fiduciary net position - ending (b)
$ 11,929,879
Net pension liability (a) - (b)
$ 1,882,676
Plan fiduciary net position as a percentage
of the total pension liability
86.37%
Covered employee payroll
$ 2,701,771
Net pension liability as a percentage of
covered payroll
69.68%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
68
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2014
Fire and Police Retirement Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Last Fiscal Year
2014
Total pension liability
Service cost
$ 699,244
Interest
1,419,425
Changes in excess state money
90,535
Changes of assumptions
246,146
Benefit payments, including
321,230
refunds of employee contributions
(451,574)
Net change in total pension liability
2,003,776
Total pension liability - beginning
17,476,586
Total pension liability - ending (a)
$ 19,480,362
Plan fiduciary net position
$ 2,678,416
Contributions - employer
$ 943,634
Contributions - State
321,230
Contributions - Eemployees
87,010
Net investment income
1,468,473
Benefit payments, including
62.10%
refunds of employee contributions
(451,574)
Administrative expenses
(66,748)
Net change in plan fiduciary net position
2,302,025
Plan fiduciary net position - beginning
14,499,921
Plan fiduciary net position - ending (b)
$ 16,801,946
Net pension liability (a) - (b)
$ 2,678,416
Plan fiduciary net position as a percentage
of the total pension liability
86.25%
Covered employee payroll
$ 4,312,746
Net pension liability as a percentage of
covered payroll
62.10%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
69
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2014
Last Fiscal Year
Schedule of Contributions
Fiscal Year Acturially
Ending Determined
September 30 Contribution
General Emmlovees Retirement Fund
2014 $ 562,509
Fire and Police Retirement Fund
2014 $ 1,173,930
Schedule of Investment Returns
Contribution Actual Contribution
Actual Deficiency Covered as a Percentage of
Conribution (Excess) Payroll Covered Paryoll
$ 562,953 $ (444) $ 2,701,771
$ 1,174,329 $ (399) $ 4,312,746
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
VIII
20.84%
27.23%
Annual money weighted rate of return
Fiscal Year
net of investment expenes
Ending
General Fire and Police
September 30
Employees Employees
2014
10.50% 10.00%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
VIII
20.84%
27.23%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Schedule of Contributions
September 30, 2014
Methods and assumptions used in calculations of determined contribtuions.
The acturialy determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year
in which contibutions are reported.
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary increases
Cost of living adjustments
Investment Rate of Return
General Employees
Retirement Fund
Frozen entry age
Level percent of closed
27 years
Five year smoothed market
4.00%
5.50%
3% for those retired before
2/1/82 or who contribute
an extra 2 %.
7.50%
Mortality RP -2000 Combined Healthy
Participant Mortality Table for
males and females with
mortality improvement
projected to all future years
after 2000 using Scale AA
71
Police and Fire
Retirement Fund
Aggregate
N/A
N/A
Five year smoothed market
4.00%
6.00%
3.00%
8.00 %, Reduced to 7.90% for the
fiscal year ended September 30, 2014
RP -2000 Table with no projection -
Based on a study of over 650 public
safety funds, this table reflects a 10%
margin for future mortality
improvements. (Disabled lives set
forward 5 years
GENERAL FUND
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual
General Fund
For the Year Ended September 30, 2014
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Public works
Community development and planning
Leisure services - recreation
Other government
Capital outlay
Total expenditures
Excess of revenues over
expenditures
Other financing sources (uses)
Appropriated fund balance
Transfer out
Total other financing uses
Net change in fund balances
Fund Balances
Beginning of year
End of year
2,592,451
2,604,487
2,540,404
Variance with
8,023,558
8,033,508
8,626,397
Final Budget
Budgeted Amounts
Actual
Positive
Original
Final
Amounts
(Negative)
$ 13,439,215
$ 13,439,215
$ 13,930,877
$ 491,662
1,092,525
1,092,525
1,344,653
252,128
1,327,964
1,327,964
1,367,378
39,414
2,149,185
2,149,185
2,320,305
171,120
75,875
75,875
117,869
41,994
77,915
77,915
16,653
(61,262)
9,400
9,400
258,086
248,686
18,172,079
18,172,079
19,355,821
1,183,742
2,592,451
2,604,487
2,540,404
64,083
8,023,558
8,033,508
8,626,397
(592,889)
4,234,100
4,320,745
3,773,689
547,056
1,135,534
1,213,549
1,004,642
208,907
2,629,269
2,635,119
2,644,598
(9,479)
1,142
1,142
162,935
159,467
3,468
18,614,912
18,971,485
18,750,339
221,146
(442,833)
(799,406)
605,482
1,404,888
442,833
1,122,406
(1,122,406)
(323,000)
(323,000)
442,833
799,406
(323,000)
(1,122,406)
$
$
282,482
$ 282,482
%L►a
12,705,381
$ 12,987,863
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Budgetary
Required Supplementary Information (RSI)
General Fund
September 30, 2014
Note 1 - Basis of Accounting
Generally accepted accounting principles (GAAP) serve as the budgetary basis of accounting.
VA]
OTHER SUPPLEMENTARY INFORMATION
GENERAL FUND
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
Village Council
Personnel services
Operating expenses
Total Village Council
Village Manager
Personnel services
Operating expenses
Total Village Manager
Village Finance
Personnel services
Operating expenses
Total Village Finance
Village Attorney
Operating expenses
Village Clerk
Personnel services
Operating expenses
Total Village Clerk
Information Technology
Personnel services
Operating expenses
Total Information Technology
Human Resources
Personnel services
Operating expenses
Total Human Resources
Police
Personnel services
Operating expenses
Total Police
Fire Rescue
Personnel services
Operating expenses
Total Fire Rescue
Public Works Administration
Personnel services
Operating expenses
Total Public Works
General Fund
For the Year Ended September 30, 2014
274,901 274,901 260,983 13,918 5.06
41,808 41,808 57,042 (15,234) -36.44
316,709 316,709 318,025 (1,316) -0.42
526,552 526,552 546,483 (19,931) -3.79
52,400 52,400 68,137 (15,737) -30.03
578,952 578,952 614,620 (35,668) -6.16
160,000 160,000 132,779 27,221
17.01
292,099 292,099 286,546 5,553 1.90
29,780 29,780 10,090 19,690 66.12
321,879 321,879 296,636 25,243 7.84
316,022 316,022 303,034 12,988 4.11
32,100 32,100 34,100 (2,000) -6.23
348,122 348,122 337,134 10,988 3.16
218,310 218,310 240,952 (22,642) -10.37
75,109 75,109 56,563 18,546 24.69
293,419 293,419 297,515 (4,096) -1.40
4,514,743 4,514,743 5,212,654 (697,911) -15.46
375,407 375,407 357,813 17,594 4.69
4,890,150 4,890,150 5,570,467 (680,317) -13.91
2,797,003 2,797,003 2,770,618 26,385 0.94
210,415 210,415 171,164 39,251 18.65
3,007,418 3,007,418 2,941,782 65,636 2.18
281,591 281,591 298,331 (16,740) -5.94
45,222 45,222 47,229 (2,007) -4.44
326,813 326,813 345,560 (18,747) -5.74
74
(Continued)
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 50,456
$ 50,456
$ 50,462
$ (6)
-0.01
91,424
103,460
66,705
36,755
35.53
141,880
153,916
117,167
36,749
23.88
274,901 274,901 260,983 13,918 5.06
41,808 41,808 57,042 (15,234) -36.44
316,709 316,709 318,025 (1,316) -0.42
526,552 526,552 546,483 (19,931) -3.79
52,400 52,400 68,137 (15,737) -30.03
578,952 578,952 614,620 (35,668) -6.16
160,000 160,000 132,779 27,221
17.01
292,099 292,099 286,546 5,553 1.90
29,780 29,780 10,090 19,690 66.12
321,879 321,879 296,636 25,243 7.84
316,022 316,022 303,034 12,988 4.11
32,100 32,100 34,100 (2,000) -6.23
348,122 348,122 337,134 10,988 3.16
218,310 218,310 240,952 (22,642) -10.37
75,109 75,109 56,563 18,546 24.69
293,419 293,419 297,515 (4,096) -1.40
4,514,743 4,514,743 5,212,654 (697,911) -15.46
375,407 375,407 357,813 17,594 4.69
4,890,150 4,890,150 5,570,467 (680,317) -13.91
2,797,003 2,797,003 2,770,618 26,385 0.94
210,415 210,415 171,164 39,251 18.65
3,007,418 3,007,418 2,941,782 65,636 2.18
281,591 281,591 298,331 (16,740) -5.94
45,222 45,222 47,229 (2,007) -4.44
326,813 326,813 345,560 (18,747) -5.74
74
(Continued)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2014
(Continued)
Sanitation
Personnel services
Operating expenses
Total Sanitation
Facility Services
Personnel services
Operating expenses
Total Facility Services
Street Maintenance
Personnel services
Operating expenses
Total Street Maintenance
Vehicle Maintenance
Personnel services
Operating expenses
Total Vehicle Maintenance
Planning and Engineering
Personnel services
Operating expenses
Total Planning and Engineering
Building
Personnel services
Operating expenses
Total Building
Code Enforcement
Personnel services
Operating expenses
Total Code Enforcement
Leisure Services - Recreation
Personnel services
Operating expenses
Total Leisure Services- Recreation
Library
Personnel services
Operating expenses
Total Library
286,429 286,429 251,450 34,979 12.21
316,450 316,450 200,674 115,776 36.59
602,879 602,879 452,124 150,755 25.01
476,300 476,300 443,947 32,353 6.79
834,957 918,402 714,493 203,909 22.20
1,311,257 1,394,702 1,158,440 236,262 16.94
231,031 231,031 146,242 84,789 36.70
240,880 240,880 148,051 92,829 38.54
471,911 471,911 294,293 177,618 37.64
238,954 238,954 252,369 (13,415) -5.61
96,085 174,100 36,490 137,610 79.04
335,039 413,054 288,859 124,195 30.07
543,477 543,477 503,095 40,382 7.43
82,615 82,615 70,543 12,072 14.61
626,092 626,092 573,638 52,454 8.38
164,733 164,733 125,891 38,842 23.58
9,670 9,670 16,254 (6,584) -68.09
174,403 174,403 142,145 32,258 18.50
617,992 617,992 641,104 (23,112) -3.74
347,684 352,534 376,319 (23,785) -6.75
965,676 970,526 1,017,423 (46,897) -4.83
555,470 555,470 576,906 (21,436) -3.86
160,821 160,821 169,592 (8,771) -5.45
716,291 716,291 746,498 (30,207) -4.22
(Continued)
75
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 1,345,990
$ 1,345,990
$ 1,350,556
$ (4,566)
-0.34
175,250
178,450
172,716
5,734
3.21
1,521,240
1,524,440
1,523,272
1,168
0.08
286,429 286,429 251,450 34,979 12.21
316,450 316,450 200,674 115,776 36.59
602,879 602,879 452,124 150,755 25.01
476,300 476,300 443,947 32,353 6.79
834,957 918,402 714,493 203,909 22.20
1,311,257 1,394,702 1,158,440 236,262 16.94
231,031 231,031 146,242 84,789 36.70
240,880 240,880 148,051 92,829 38.54
471,911 471,911 294,293 177,618 37.64
238,954 238,954 252,369 (13,415) -5.61
96,085 174,100 36,490 137,610 79.04
335,039 413,054 288,859 124,195 30.07
543,477 543,477 503,095 40,382 7.43
82,615 82,615 70,543 12,072 14.61
626,092 626,092 573,638 52,454 8.38
164,733 164,733 125,891 38,842 23.58
9,670 9,670 16,254 (6,584) -68.09
174,403 174,403 142,145 32,258 18.50
617,992 617,992 641,104 (23,112) -3.74
347,684 352,534 376,319 (23,785) -6.75
965,676 970,526 1,017,423 (46,897) -4.83
555,470 555,470 576,906 (21,436) -3.86
160,821 160,821 169,592 (8,771) -5.45
716,291 716,291 746,498 (30,207) -4.22
(Continued)
75
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2014
(Continued)
Tennis
Personnel services
Operating expenses
Total Tennis
Pool
Personnel services
Operating expenses
Total Pool
Special Events
Operating expenses
Total Special Events
Other
Operating expenses
Non - Departmental
Operating expenses
Capital Outlay
Planning and Engineering
Building
Leisure Services - Recreation
Pool
Total Capital Outlay
Total expenditures
94,176 94,176 96,871 (2,695) -2.86
244,339 244,339 247,724 (3,385) -1.39
338,515 338,515 344,595 (6,080) -1.80
90,500 91,500 85,192 6,308 6.89
90,500 91,500 85,192 6,308 6.89
1,142 1,142 0.00
1,142 1,142 0.00
557,480 567,430 540,676 26,754 4.71
557,480 567,430 540,676 26,754 4.71
6,128 588 5,540 90.40
13,399 (13,399)
156,557 145,230 11,327 7.24
250 250
162,935 159,467 3,468 2.13
$ 18,614,912 $ 18,971,485 $ 18,750,339 $ 221,146 1.17%
76
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 134,244
$ 134,244
$ 127,052
$ 7,192
5.36
384,043
384,043
323,838
60,205
15.68
518,287
518,287
450,890
67,397
13.00
94,176 94,176 96,871 (2,695) -2.86
244,339 244,339 247,724 (3,385) -1.39
338,515 338,515 344,595 (6,080) -1.80
90,500 91,500 85,192 6,308 6.89
90,500 91,500 85,192 6,308 6.89
1,142 1,142 0.00
1,142 1,142 0.00
557,480 567,430 540,676 26,754 4.71
557,480 567,430 540,676 26,754 4.71
6,128 588 5,540 90.40
13,399 (13,399)
156,557 145,230 11,327 7.24
250 250
162,935 159,467 3,468 2.13
$ 18,614,912 $ 18,971,485 $ 18,750,339 $ 221,146 1.17%
76
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Public Safety Fund
Northlake Boulevard Fund
Recreation Fund
On- Behalf Pension Contributions
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2014
77
Special Revenue Funds
Public
Northlake
On- Behalf
Total Nonmajor
Safety
Boulevard
Pension
Governmental
Fund
Fund
Recreation
Contributions
Funds
Assets
Cash and cash equivalents
$
1,520
$ 1,986
$ 365,674
$
$ 369,180
Due from other governments
53,385
53,385
Total assets
$
1,520
$ 1,986
$ 365,674
$ 53,385
$ 422,565
Liabilities
Accounts payable
$
$
$
$ 53,385
$ 53,385
Due to other funds
44,028
44,028
Total liabilities
44,028
53,385
97,413
Fund balances
Assigned
1,520
1,986
321,646
325,152
Total fund balances
1,520
1,986
321,646
325,152
Total liabilities and fund balances
$
1,520
$ 1,986
$ 365,674
$ 53,385
$ 422,565
77
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2014
78
Special Revenue Funds
Public
Northlake
On- Behalf
Total Nonmajor
Safety
Boulevard
Pension
Governmental
Fund
Fund
Recreation
Contributions
Funds
Revenues
Intergovernmental $
$
$
$ 321,230
$ 321,230
Total revenues
321,230
321,230
Expenditures
Current
Public safety
321,230
321,230
Total expenditures
321,230
321,230
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources (uses)
Transfers in
277,500
277,500
Total other financing sources (uses)
277,500
277,500
Net changes in fund balances
277,500
277,500
Fund balances - Beginning of year
1,520
1,986
44,146
47,652
Fund balances - End of year $
1,520
$ 1,986
$ 321,646
$
$ 325,152
78
FIDUCIARY FUNDS
Pension Trust Funds
General Employees Pension Trust Fund
Fire and Police Officers Pension Trust Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Net Position - Fiduciary Funds
September 30, 2014
ASSETS
Cash and cash equivalents
Investments:
Domestic common equity securities
International common equity securities
U.S. Government agencies
Municipal bonds
Corporate bonds
Equity mutual funds
Fixed income mutual funds
Real estate investment fund
Accrued interest and dividends
Accounts Receivable
Prepaids
Total assets
LIABILITIES
Accounts payable
Accounts payable, broker - dealers
Total liabilities
Net Position
Held in trust for pension benefits
and other purposes
Fire and
Total
General Police
Employee
Employees Officers
Retirement
Pension Pension
Funds
$ 153,656 $
1,927,715 $
2,081,371
188,440
8,808,720
8,808,720
1,005,284
1,005,284
1,064,305
1,064,305
220,970
220,970
2,496,523
2,496,523
9,007,221
34,079
9,041,300
2,748,417
2,748,417
1,254,827
1,254,827
2,705
45,804
48,509
27,589
120,961
148,550
1,489 1,489
11,939,588 16,980,677 28,920,265
29,657
9,709 149,074
29,657
158,783
9,709 178,731
188,440
$ 11,929,879 $ 16,801,946 $ 28,731,825
79
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Changes in Fiduciary Net Position
Employee Retirement Funds
For the Year Ended September 30, 2014
Additions
Contributions
Employer
Plan members
State on- behalf payments
Total contributions
Investment earnings
Dividends and interest
Net increase in fair value of investments
Total investment earnings
Less: investment expenses
Total investment earnings
Total additions
Deductions
Administration
Benefits
Refund of contributions
Total deductions
Change in net position
Net position - beginning
Net position - ending
Fire and Total
General Police Employee
Employees Officers Retirement
$ 562,953
$ 943,634
$ 1,506,587
142,609
87,010
229,619
321,230
321,230
705,562
1,351,874
2,057,436
319,236
355,380
674,616
789,337
1,229,895
2,019,232
1,108,573
1,585,275
2,693,848
36,564
116, 802
153,366
1,072,009
1,468,473
2,540,482
1,777,571
2,820,347
4,597,918
17,171
66,748
83,919
221,537
451,574
673,111
42,137
42,137
280,845
518,322
799,167
1,496,726
2,302,025
3,798,751
10,433,153
14,499,921
24,933,074
$ 11,929,879
$ 16,801,946
$ 28,731,825
:1
AGENCY FUNDS
Manatee Protection Agency
Northlake Boulevard Task Force
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Agency Net Position
September 30, 2014
Assets
Cash and cash equivalents
Liabilities
Due to others
Manatee
Northlake
Total
Protection
Boulevard
Agency
Agency
Task Force
Funds
$ 293,632 $ 62,428 $ 356,060
$ 293,632 $ 62,428 $ 356,060
RE
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Schedule of Changes in Agency Net Position
For the Year Ended September 30, 2014
Manatee Protection Agency
Assets
Cash and cash equivalents
Liabilities
Due to others
Northlake Boulevard Task Force
Assets
Cash and cash equivalents
Liabilities
Due to others
Total All Agency Funds
Assets
Cash and cash equivalents
Liabilities
Due to others
September 30, 2013 Additions Deductions September 30, 2014
$ 290,647 $ 2,985 $ $ 293,632
$ 290,647 $ 2,985 $ $ 293,632
$ 61,793 $ 635 $ $ 62,428
$ 61,793 $ 635 $ $ 62,428
$ 352,440 $ 3,620 $ $ 356,060
$ 352,440 $ 3,620 $ $ 356,060
82
PROPRIETARY FUND
(ENTERPRISE FUND)
Country Club Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Departmental Expenses - Budget and Actual
Country Club Fund - Budgetary Basis
For the Year Ended September 30, 2014
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 3,810,903
Less: capital outlay costs capitalized (1) (8,120)
Less: debt service (533,821)
Add: depreciation expense 481,882
Total operating expenses $ 3,750,844
(1) $33,600 of capital outlay in Clubhouse and Grounds was expensed as repairs and maintenance.
83
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
Revenue
Greens fee /cart rentals /membership fees
$ 2,359,455
$ 2,359,455
$ 2,328,539
$ (30,916)
-1.31
Golf shop revenues
337,900
337,900
405,986
68,086
20.15
Driving range revenues
281,000
281,000
283,320
2,320
0.83
Restaurant revenues
799,000
799,000
620,926
(178,074)
-22.29
Interest revenues
7,600
7,600
10,930
3,330
43.82
Miscellaneous
6,935
6,935
Appropriated net position
19,135
(19,135)
Total revenues
3,784,955
3,804,090
3,656,636
(147,454)
-3.88
Golf Maintenance
Operating expenses
1,149,240
1,158,040
1,209,689
(51,649)
-4.46
Total Golf Maintenance
1,149,240
1,158,040
1,209,689
(51,649)
-4.46
Golf Pro Shop and Range
Personnel services
580,055
580,055
643,248
(63,193)
-10.89
Operating expenses
308,124
314,459
344,885
(30,426)
-9.68
Total Golf Pro Shop and Range
888,179
894,514
988,133
(93,619)
-10.47
Food and Beverage
Personnel services
466,287
466,287
432,858
33,429
7.17
Operating expenses
446,038
446,038
365,357
80,681
18.09
Total Food and Beverage
912,325
912,325
798,215
114,110
12.51
Administration
Personnel services
67,782
67,782
39,648
28,134
41.51
Operating expenses
29,444
29,444
49,014
(19,570)
-66.47
Total Administration
97,226
97,226
88,662
8,564
8.81
Clubhouse and Grounds
Operating expenses
104,574
108,574
97,594
10,980
10.11
Capital outlay
12,000
12,000
41,720
(29,720)
Total Clubhouse and Grounds
116,574
120,574
139,314
(18,740)
(15.54)
Insurance and General Liability
Operating expenses
48,529
48,529
48,169
360
0.74
Reserves
Operating
10,000
10,000
4,900
5,100
51.00
Contingency
14,131
14,131
14,131
100.00
Total Reserves
24,131
24,131
4,900
19,231
79.69
Debt service
Debt service
548,751
548,751
533,821
14,930
2.72
Total expenses on the budgetary basis
3,784,955
3,804,090
3,810,903
(6,813)
(0.18)
Revenues over expenses
$
$
$ (154,267)
_L CL
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 3,810,903
Less: capital outlay costs capitalized (1) (8,120)
Less: debt service (533,821)
Add: depreciation expense 481,882
Total operating expenses $ 3,750,844
(1) $33,600 of capital outlay in Clubhouse and Grounds was expensed as repairs and maintenance.
83
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Village of North Palm Beach's comprehensive annual financial report presents detailed unaudited information as
a context for understanding what the information in the financial statement, note disclosures, and required supplementary
information says about the Village's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the Village's financial
performance and well -being have changed over time. These schedules include:
Net Position by Component 84
Changes in Net Position 85
Fund Balances, Governmental Funds 87
Changes in Fund Balances, Governmental Fund 88
Revenue Capacity
These schedules contain information to help the reader assess the Village's most significant local
revenue source, the property tax.
Net Assessed Value and Estimated Actual Value of Taxable Property 90
Property Tax Rates - Direct and Overlapping Governments 91
Principal Property Taxpayers 92
Property Tax Levies and Collections 93
Debt Capacity
These schedules present information to help the reader assess the affordability of the Village's
current levels of outstanding debt and the Village's ability to issue additional debt in the future.
Ratios of Outstanding Debt by Type 94
Direct and Overlapping Governmental Activities Debt 95
Pledged- Revenue Coverage 96
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place.
Demographic and Economic Statistics 97
Principal Employers 98
Operating Information
These schedules contain service and infrastructure data to help understand how the information
in the Village's financial report relates to the services the Village provides and the activities it performs.
Full -Time Equivalent Village Government Employees by Function 99
Operating Indicators by Function /Program 100
Capital Asset Statistics by Function /Program 101
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
VILLAGE OF NORTH PALM BEACH
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCR UAL BASIS OFACCOUNTING) Unaudited
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
84
2010
2011
Fiscal Year
2013
2014
Governmental Activities:
2005
2006
2007
2008
2009
Governmental Activities:
$ 18,184,508
$ 17,237,355
$ 16,109,707
$ 15,431,966
$ 14,966,927
Net investment in capital assets
$ 3,535,596
$ 8,118,773
$ 10,543,788
$ 12,845,093
$ 16,643,241
Restricted
19,828
154,073
113,269
979,182
251,088
Unrestricted
6,654,989
7,143,452
9,281,170
9,836,912
11,016,626
Total governmental activities net position
10,210,413
15,416,298
19,938,227
23,661,187
27,910,955
Business -Type Activities:
2,295,125
2,200,927
2,082,668
1,998,974
1,907,746
Net investment in capital assets
1,919,194
1,999,123
2,195,630
2,492,524
2,364,814
Unrestricted
270,374
415,865
151,005
202,802
434,212
Total business -type activities net position
2,189,568
2,414,988
2,346,635
2,695,326
2,799,026
Primary government:
20,479,633
19,438,282
18,192,375
17,430,940
16,874,673
Net investment in capital assets
5,454,790
10,117,896
12,739,418
15,337,617
19,008,055
Restricted
19,828
154,073
113,269
979,182
251,088
Unrestricted
6,925,363
7,559,317
9,432,175
10,039,714
11,450,838
Total primary government net position
$ 12,399,981
$ 17,831,286
$ 22,284,862
$ 26,356,513
$ 30,709,981
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
84
2010
2011
2012
2013
2014
Governmental Activities:
Net investment in capital assets
$ 18,184,508
$ 17,237,355
$ 16,109,707
$ 15,431,966
$ 14,966,927
Restricted
390,081
548,489
658,194
317,190
180,755
Unrestricted
10,568,594
11,775,621
11,846,141
11,973,715
11,314,096
Total governmental activities net position
29,143,183
29,561,465
28,614,042
27,722,871
26,461,778
Business -Type Activities:
Net investment in capital assets
2,295,125
2,200,927
2,082,668
1,998,974
1,907,746
Unrestricted
403,261
385,623
557,954
668,434
514,167
Total business -type activities net position
2,698,386
2,586,550
2,640,622
2,667,408
2,421,913
Primary government:
Net investment in capital assets
20,479,633
19,438,282
18,192,375
17,430,940
16,874,673
Restricted
390,081
548,489
658,194
317,190
180,755
Unrestricted
10,971,855
12,161,244
12,404,095
12,642,149
11,828,263
Total primary government net position
$ 31,841,569
$ 32,148,015
$ 31,254,664
$ 30,390,279
$ 28,883,691
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
84
VILLAGE OF NORTH PALM BEACH
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OFACCOUNTING) Unaudited
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
85
Fiscal Year
2005
2006
2007
2008
2009
Expenses
Governmental activities:
General government
$
2,127,009
$ 1,784,528
$
2,698,187
$
1,839,228
$ 2,239,511
Public safety
6,038,846
7,036,117
6,671,490
7,154,578
7,095,043
Public works
5,091,305
4,131,500
3,733,815
3,996,711
4,083,441
Community development and planning
657,112
737,165
860,448
826,149
Leisure services
1,635,784
2,562,627
2,781,658
3,244,045
3,174,623
Other government
842,561
2,049
Interest on long -term debt
151,233
241,995
204,666
120,549
26,702
Total governmental activities expenses
15,886,738
16,415,928
16,826,981
17,215,559
17,445,469
Business -type activities:
Country club
2,607,712
2,124,927
3,570,683
3,268,562
3,308,535
Total business -type activities
2,607,712
2,124,927
3,570,683
3,268,562
3,308,535
Total primary government expenses
$
18,494,450
$ 18,540,855
$ 20,397,664
$ 20,484,121
$ 20,754,004
Program Revenues
Governmental activities:
Charges for services:
General government
$
285,386
$ 158,160
$
122,455
$
123,334
$ 122,569
Public safety
329,081
388,671
345,731
383,325
378,591
Public works
1,326,820
140,923
217,975
288,994
394,082
Community development and planning
1,175,252
938,188
888,015
699,130
Leisure services
78,475
528,983
496,679
595,558
912,862
Other government
Operating grants and contributions
1,392,729
998,573
170,389
88,224
105,080
Capital grants and contributions
462,394
1,454,526
1,602,465
2,017,158
Total governmental activities program revenues
3,412,491
3,852,956
3,745,943
3,969,915
4,629,472
Business -type activities:
Charges for services:
Country club
2,658,468
2,167,089
3,463,524
3,616,509
3,404,859
Operating grants and contributions
68,883
13,609
Capital grants and contributions
Total business -type activities program revenues
2,658,468
2,235,972
3,463,524
3,630,118
3,404,859
Total primary government program revenues
$
6,070,959
$ 6,088,928
$
7,209,467
$
7,600,033
$ 8,034,331
Net (Expense)/Revenue
Governmental activities
$
(12,474,247)
$ (12,562,972)
$ (13,081,041)
$ (13,245,644)
$ (12,815,997)
Business -type activities
50,756
111,045
(107,159)
3612556
96,324
Total primary government net expense
$ (12,423,491)
$ (12,451,927)
$
(13,188,200)
$ (12,884,088)
$ (12,719,673)
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes
$
10,070,977
$ 10,881,501
$
12,076,184
$
11,915,355
$ 11,917,359
Local option gas taxes
307,043
292,332
278,649
267,557
Utility service taxes
1,955,403
2,001,164
2,001,443
2,018,071
2,239,002
Franchise taxes
890,297
1,150,974
1,207,552
1,212,562
1,256,831
Sales and use taxes
1,277,124
1,415,917
1,339,893
1,227,341
1,116,107
Unrestricted grants and contributions
421,254
Investment earnings
196,699
477,420
650,022
194,652
(1,346)
Miscellaneous
111,927
53,264
8,836
55,719
263,459
Contributions for Support Our Troops
15,502
16,959
6,796
Gain on disposl of equipment
Transfers
36,445
5,111
49,296
Total governmental activities
14,923,681
16,323,728
17,596,875
16,968,604
17,065,765
Business -type activities:
Investment income
12,640
112,841
43,917
36,431
7,376
Miscellaneous
Transfers
(36,445)
(5,111)
(49,296)
Total business -type activities
12,640
76,396
38,806
(12,865)
7,376
Total primary government
$
14,936,321
$ 16,400,124
$
17,635,681
$
16,955,739
$ 17,073,141
Change in net position
Governmental activities
$
2,449,434
$ 3,760,756
$
4,515,834
$
3,722,960
$ 4,249,768
Business -type activities
63,396
187,441
(68,353)
348,691
103,700
Total primary government
$
2,512,830
$ 3,948,197
$
4,447,481
$
4,071,651
$ 4,353,468
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
85
2010 2011 2012 2013 2014
$ 2,679,192
$
2,403,681
$
2,520,815
$
2,489,488
$
2,696,298
7,304,233
7,232,748
7,892,561
8,282,062
9,259,442
4,594,738
4,733,913
4,652,620
4,482,973
4,485,246
806,536
811,177
884,773
966,245
1,046,299
2,830,292
2,749,065
2,873,496
2,974,290
3,114,213
4,384
18,219,375
17,930,584
18,824,265
19,195,058
20,601,498
3,398,206
3,691,528
3,536,139
3,629,120
3,902,131
3,398,206
3,691,528
3,536,139
3,629,120
3,902,131
$ 21,617,581
$
21,622,112
$
22,360,404
$
22,824,178
$
24,503,629
$ 126,968
$
130,886
$
135,372
$
107,976
$
110,694
465,263
420,653
440,568
522,121
592,644
411,722
400,662
386,974
403,447
402,814
734,718
861,394
816,673
993,059
1,621,471
1,063,748
1,043,459
1,018,883
1,087,182
1,096,021
96,670
126,568
149,573
91,901
90,520
75,845
5,169
5,686
233,949
16,098
2,974,934
2,988,791
2,953,729
3,439,635
3,930,262
3,227,580
3,571,199
3,582,760
3,577,446
3,645,706
3,227,580
3,582,760
3,571,199
3,577,446
3,645,706
$ 6,202,514
$
6,559,990
$
6,536,489
$
7,017,081
$
7,575,968
$ (15,244,441) $ (14,941,793) $ (15,870,536) $ (15,755,423) $ (16,671,236)
(170,626) (120,329) 46,621 (51,674) (256,425)
$ (15,415,067) $ (15,062,122) $ (15,823,915) $ (15,807,097) $ (16,927,661)
$ 11,053,128 $ 10,441,869 $ 10,011,748 $ 9,981,391 $ 10,154,695
266,077 259,794 263,369 261,852 266,147
2,261,375 2,198,148 2,164,920 2,197,760 2,277,366
1,204,328 1,191,155 1,178,5 98 1,160,780 1,232,669
1,114,945 1,140,744 1,138,097 1,187,221 1,260,617
280,217 97,743 90,968 37,029 16,653
213,425 30,622 75,413 38,219 146,360
55,636
16,393,495 15,360,075 14,923,113 14,864,252 15,410,143
14,686 8,493 7,451 8,555 10,930
55,300 69,905
69,986 8,493 7,451 78,460 10,930
$ 16,463,481 $ 15,368,568 $ 14,930,564 $ 14,942,712 $ 15,421,073
$ 1,149,054 $ 418,282 $ (947,423) $ (891,171) $ (1,261,093)
(100,640) (111,836) 54,072 26,786 (245,495)
$ 1,048,414 $ 306,446 $ (893,351) $ (864,385) $ (1,506,588)
86
VILLAGE OF NORTH PALM BEACH
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
The Village implemented GASB 54, Fund Balance Reporting and Government Fund Definitions, in 2011 and restated the 2010 amounts
87
2005
2006
2007
2008
2009
General Fund
Reserved
$
197,163
$
308,836
$
945,891
$
775,339
$
563,115
Unreserved
5,771,684
7,022,606
8,179,659
8,265,513
10,058,216
Total general fund
$
5,968,847
$
7,331,442
$
9,125,550
$
9,040,852
$
10,621,331
All other Governmental Funds
Reserved
$
19,828
$
$
$
239,979
$
Unreserved, reported in:
Special revenue funds
400,000
224,937
594,399
(152,861)
Capital projects funds
397,233
673,232
713,373
825,778
Total all other governmental funds
$
19,828
$
797,233
$
898,169
$
1,547,751
$
672,917
2010
2011
2012
2013
2014
General Fund
Nonspendable
$
167,108
$
276,924
$
166,839
$
293,674
$
244,438
Restricted
338,457
548,489
658,194
317,190
135,255
Committed
442,833
Assigned
104,245
186,594
127,574
200,016
216,808
Unassigned
10,443,099
10,688,660
11,244,977
11,451,668
12,391,362
Total general fund
$ 11,052,909
$ 11,700,667
$ 12,197,584
$ 12,705,381
$
12,987,863
All other Governmental Funds
Restricted
$
$
$
$
$
45,500
Assigned
Special revenue funds
47,379
47,107
47,652
47,652
325,152
Capital projects funds
844,742
1,491,574
2,129,831
1,799,617
841,850
Total all other governmental funds
$
892,121
$
1,538,681
$
2,177,483
$
1,847,269
$
1,212,502
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
The Village implemented GASB 54, Fund Balance Reporting and Government Fund Definitions, in 2011 and restated the 2010 amounts
87
VILLAGE OF NORTH PALM BEACH
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCR UAL BASIS OF ACCOUNTING) Unaudited
Revenues:
Taxes
Licenses and Permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
Total revenues
Expenditures:
General government
Public safety
Public works
Community development and planning
Leisure services - recreation
Other government
Capital outlay
Debt service
Principal payments
Interest paid on debt
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Capital lease
Proceeds from debt issuance
Miscellaneous
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
Fiscal Year
2005
2006
2007
2008
2009
$ 13,236,952
$ 14,340,682
$ 15,577,511
$ 15,424,638
$ 15,680,749
1,131,903
1,128,658
880,266
1,047,144
880,016
2,804,985
2,914,057
2,750,021
2,459,211
3,315,908
647,915
1,003,660
1,082,569
1,268,774
1,684,718
234,513
165,496
132,158
235,965
145,340
196,699
477,421
650,022
194,652
(1,345)
83,205
130,515
194,716
137,447
300,455
18,336,172
20,160,489
21,267,263
20,767,831
22,005,841
2,061,545
1,648,131
2,304,654
2,246,461
1,970,257
5,713,904
6,494,578
6,609,801
7,056,833
6,835,730
5,019,739
4,708,196
3,558,264
3,725,450
3,432,556
651,331
735,155
840,366
784,486
1,376,950
1,682,030
2,430,403
2,876,840
2,898,252
817,293
2,049
1,917,377
2,737,805
2,597,065
3,939,455
903,225
879,527
789,048
716,206
1,395,735
151,233
199,373
207,088
143,726
43,725
16,043,889
18,182,592
19,372,218
20,202,947
21,300,196
2,292,283
1,977,897
1,895,045
564,884
705,645
1,471,529
593,884
1,254,952
454,111
(1,471,529)
(593,884)
(1,254,952)
(454,111)
123,500
123,500
$ 2,415,783 $ 1,977,897 $ 1,895,045 $ 564,884 $ 705,645
7.03% 7.29% 6.41% 4.91% 8.07%
88
2010
2011
2012
2013
2014
$ 14,784,906
$ 14,090,966
$ 13,618,635
$ 13,601,783
$ 13,930,877
910,997
959,098
810,390
803,337
1,344,653
1,768,388
1,557,377
1,591,678
1,817,603
1,688,608
1,944,245
1,934,424
1,966,179
2,141,437
2,320,305
142,048
164,366
140,610
131,524
117,869
280,218
97,743
90,968
37,029
16,653
278,062
59,462
130,293
207,076
258,086
20,108,864
18,863,436
18,348,753
18,739,789
19,677,051
2,496,342
2,402,241
2,328,568
2,346,281
2,541,546
7,021,231
7,053,282
7,583,018
7,947,221
8,947,627
3,887,034
4,044,642
3,886,698
3,733,977
3,773,689
774,121
790,937
844,748
933,117
1,004,642
2,361,388
2,295,959
2,374,748
2,491,559
2,644,598
663,582
682,057
495,254
1,110,051
1,117,234
2,250,000
4,384
19,458,082
17,269,118
17,513,034
18,562,206
20,029,336
650,782
1,594,318
835,719
177,583
(352,285)
163,490
1,334,934
500,000
265,000
323,000
(163,490)
(1,334,934)
(500,000)
(265,000)
(323,000)
$ 650,782 $ 1,594,318 $ 835,719 $ 177,583 $ (352,285)
11.99%
89
VILLAGE OF NORTH PALM BEACH
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Unaudited
Total Net Market -
Assessed Value
Total Direct
Tax Rate
Real Property
7.2700
1,665,500,189
Fiscal Year
1,981,539,385
6.3000
2,017,239,341
6.1000
Ended
Tax Roll
1,656,950,264
Commercial
Personal
Sept 30,
Year
Residential Property
Property
Property
2005
2004
$ 1,180,028,585 $
208,240,338
$ 49,767,286
2006
2005
1,441,249,707
179,827,665
44,422,817
2007
2006
1,700,678,282
235,776,768
45,084,335
2008
2007
1,744,202,888
229,300,592
43,735,861
2009
2008
1,575,367,916
230,599,951
41,471,282
2010
2009
1,394,954,867
221,443,121
40,552,276
2011
2010
1,295,097,223
210,844,220
38,261,607
2012
2011
1,265,549,795
189,284,601
33,303,512
2013
2012
1,254,302,880
195,770,816
30,033,151
2014
2013
1,287,481,785
203,512,929
33,792,851
Total Net Market -
Assessed Value
Total Direct
Tax Rate
$ 1,438,036,209
7.2700
1,665,500,189
6.8000
1,981,539,385
6.3000
2,017,239,341
6.1000
1,847,439,149
6.6977
1,656,950,264
6.9000
1,544,203,050
6.9723
1,488,137,908
6.9723
1,480,106,847
6.9723
1,524,787,565
6.8731
Note: Assessed values are established by the Palm Beach Property Appraiser's office as of January 1, each year.
Assessments were increased to 100% of market value as of 1980.
Property in the Village is reassessed each year. Property is assessed at actual value, therefore the assessed
values are equal to actual value. Tax rates are per $1,000 of assessed value.
Source: Palm Beach County Property Appraiser
.e
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Unaudited
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Source: North Palm Beach: Notice of Ad Valorem Taxes and Non -Ad Valorem Assessments
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
91
Overlapping Rates (1)
Palm Beach
Total
County
Palm
Direct and
Fiscal
Tax Roll
Village of
School
Beach
Special
Overlapping
Year
Year
N. Palm Beach
District
County
Districts
Rates
2005
2004
7.2700
8.4300
4.7680
2.5260
22.9940
2006
2005
6.8000
8.1060
4.7192
2.5042
22.1294
2007
2006
6.3000
7.8700
4.4800
2.3250
20.9750
2008
2007
6.1000
7.3560
3.9813
2.1308
19.5681
2009
2008
6.6977
7.2500
3.9660
2.2570
20.1707
2010
2009
6.9000
7.9830
4.5614
2.4934
21.9378
2011
2010
6.9723
8.1540
4.9960
2.5549
22.6772
2012
2011
6.9723
8.1800
4.9925
2.3433
22.4881
2013
2012
6.9723
7.7780
4.9902
2.3154
22.0559
2014
2013
6.8731
7.5860
4.9852
2.2280
21.6723
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Source: North Palm Beach: Notice of Ad Valorem Taxes and Non -Ad Valorem Assessments
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
91
VILLAGE OF NORTH PALM BEACH
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND 2005
Unaudited
Source: Palm Beach Country Appraiser
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
92
2014
2005
Percentage
Percentage
of Total
of Total
Village Net
Village Net
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayers
Value
Rank
Value
Value
Rank
Value
Old Port Cove Equities, Inc
21,790,372
1
1.43%
Olen Residential Realty
20,310,994
2
1.33%
12,900,000
3
0.90%
Florida Power & Light
16,963,014
3
1.11%
Sanctuary Bay Trust Corporation
15,989,705
4
1.05%
11,000,300
5
0.76%
New Country Motor Cars
11,441,435
5
0.75%
Wolfchase Associates, LLC
10,500,000
4
0.73%
Domani Devolopment, LLC
10,020,009
6
0.66%
15,244,750
1
1.06%
Old Port Cove Holdings, Inc
7,705,060
7
0.51%
CF02 Palm Beach III LP
7,200,000
8
0.47%
Crystal Tree Property Owners
7,000,000
9
0.46%
13,571,976
2
0.94%
Bozzuto, Michael A
5,737,391
10
0.38%
Greater Fla Inv CO
5,840,000
7
0.41%
Village Shoppes at US 1, LLC
6,932,847
6
0.48%
Riverside National Bank of Florida
4,964,157
8
0.35%
McGould Sean
4,479,263
9
0.31%
Malone Debora B
4,455,001
10
0.31%
Total
$ 124,157,980
8.15%
$ 89,888,294
6.25%
Source: Palm Beach Country Appraiser
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
92
93
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX LEVIES AND COLLECTIONS
FAST TEN CALENDAR YEARS
Unaudited
Collected within
the Fiscal Year
Total Collections
Fiscal Year
Total Taxes
of the Levy
Collections in
to Date
Ending
Tax Roll
Levied for
Percent
Subsequent
Percent
Sept 30,
Year
Fiscal Year
Amount of Levy
Years
Amount
of Levy
2005
2004
$ 10,463,873
$ 10,059,478 96.14%
$ 9,476
$ 10,068,954
96.23%
2006
2005
11,329,648
10,690,869 94.36%
172,744
10,863,613
95.89%
2007
2006
12,624,307
11,802,457 93.49%
228,352
12,030,809
95.30%
2008
2007
12,360,135
11,546,732 93.42%
333,756
11,880,488
96.12%
2009
2008
12,401,519
11,530,384 92.98%
349,642
11,880,026
95.79%
2010
2009
11,564,281
10,683,829 92.39%
284,004
10,967,833
94.84%
2011
2010
10,793,319
10,097,289 93.55%
298,514
10,395,803
96.32%
2012
2011
10,424,715
9,992,145 95.85%
15,616
10,007,761
96.00%
2013
2012
10,358,172
9,948,550 96.05%
36,366
9,984,916
96.40%
2014
2013
10,503,598
10,097,763 96.14%
57,493
10,155,256
96.68%
Source:
Palm Beach Country Property Appraiser
93
VILLAGE OF NORTH PALM BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Unaudited
* 2010 Median Household Income was used for calculation - 2011 Income was not available due to agency software upgrades
** 2010 Population was used for calculation - 2011's Population was not available due to agency software upgrades
(1) See the Schedule of Demographic and Economic Statistics on page 97 for personal income and population data.
N/A Data not available.
94
Business -type
Governmental Activities
Activities
Fiscal Year
Percent of
Ended
Loans
Capital
Loans
Capital
Median Personal
Per
Sept 30,
Payable
Leases
Payable
Leases
Total
Income (1)
Capita 1
2005
$ 5,754,677 $
275,840
$ 454,131
$
$ 6,484,648
N/A
$ 513
2006
4,941,765
209,224
5,185,978
10,336,967
17.20%
786.20
2007
4,280,842
81,100
5,026,895
9,388,837
14.67%
715.61
2008
3,605,639
40,097
4,662,833
192,892
8,501,461
12.92%
692.64
2009
2,250,000
4,383,033
97,049
6,730,082
10.14%
583.15
2010
4,090,284
235,176
4,325,460
6.74%
371.64
2011
3,844,928
173,084
4,018,012
*6.26%
* *345.22
2012
3,608,294
106,933
3,715,227
5.98%
303.51
2013
3,357,875
396,055
3,753,930
6.28%
305.37
2014
3,096,925
274,471
3,371,396
5.32%
266.62
Note:
Details regarding the Village's outstanding debt may be found in the notes to the
financial statements.
* 2010 Median Household Income was used for calculation - 2011 Income was not available due to agency software upgrades
** 2010 Population was used for calculation - 2011's Population was not available due to agency software upgrades
(1) See the Schedule of Demographic and Economic Statistics on page 97 for personal income and population data.
N/A Data not available.
94
VILLAGE OF NORTH PALM BEACH
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2014
Unaudited
Village of North Palm Beach Direct Debt
Total direct and overlapping debt $ 11,648,794
Sources: Palm Beach County Tax Appraiser's Office
Palm Beach County School Board
Palm Beach County Clerk & Comptroller
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the Village. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and businesses of the Village of North Palm Beach. This
process recognizes that, when considering the Village's ability to issue and repay long -term debt, the
entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt,
of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Value that is within the Village's boundaries and dividing it by the
County's and School Board's total taxable assessed value. This approach was also used for the other
debt.
95
Percentage
Amount
Net
Applicable to
Applicable to
Debt
the Village of
the Village of
Government Unit
Outstanding
North Palm Beach (1)
North Palm Beach
Debt repaid with property taxes:
Palm Beach County
$ 163,630,000
1.17%
$ 1,914,471
Palm Beach County School Board
1.10%
Other debt:
Palm Beach County
811,414,000
1.17%
9,493,544
Palm Beach County School Board
21,889,000
1.10%
240,779
Subtotal, overlapping debt
11,648,794
Village of North Palm Beach Direct Debt
Total direct and overlapping debt $ 11,648,794
Sources: Palm Beach County Tax Appraiser's Office
Palm Beach County School Board
Palm Beach County Clerk & Comptroller
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the Village. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and businesses of the Village of North Palm Beach. This
process recognizes that, when considering the Village's ability to issue and repay long -term debt, the
entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt,
of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Value that is within the Village's boundaries and dividing it by the
County's and School Board's total taxable assessed value. This approach was also used for the other
debt.
95
Fiscal
Year
(4)
2006
2007
2008
2009
2010
2011
2012
2013
2014
VILLAGE OF NORTH PALM BEACH
Pledged - Revenue Coverage
Country Club Bonds
Last Ten Fiscal Years
Unaudited
Gross Operating
Revenues (1) Expenses (2) Net Revenue
Required
Debt
Service
Coverage (3)
$ 2,348,813
$ 1,910,640
$ 438,173
$ 106,936
4.10
3,507,441
2,991,621
515,820
392,505
1.31
3,652,940
2,558,591
1,094,349
394,900
2.77
3,412,235
2,587,171
825,064
394,900
2.09
3,242,266
2,728,470
513,796
394,900
1.30
3,579,692
3,049,301
530,391
394,900
1.34
3,590,211
2,932,743
657,468
394,900
1.66
3,586,001
2,986,080
599,921
394,900
1.52
3,656,636
3,248,284
408,352
394,900
1.03
(1) Gross revenue includes interest revenue.
(2) Operating expenses excludes non -cash expenses
(3) Coverage should be not less than 1.00.
(4) 2006 was the first year the debt was outstanding, and was not a complete year.
96
(4)
Calendar
Year
2005
2006 (estimate)
2007 (estimate)
2008 (estimate)
2009 (estimate)
2010 (estimate)
2011 (estimate)
2012 (estimate)
2013 (estimate)
2014 (estimate)
Sources:
VILLAGE OF NORTH PALM BEACH
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Unaudited
Population (1)
12,633
13,148
13,120
12,274
11,541
11,639
12,241
12,293
12,645
Median
Personal
Income (1)
60,101
63,984
65,815
66,401
64,156
62,121
59,778
63,349
Business Development Board
US Census Bureau
Per
Capita
Personal
Income (1)
46,726
42,224
45,563
49,350
49,130
49,117
42,830
43,120
Palm Beach
County
Unemployment
Rate (2)
4.0
3.3
4.1
6.3
10.8
12.0
10.7
* *5.29
**4.66
* *3.92
* 2011 Demographic data is not available due to Agency Software upgrade
that is not complete
** Village of North Palm Beach Unemployment Rate for 2012 -2014 presented
Note: (1) All information available at the current time is presented.
(2) North Palm Beach is not large enough to track unemployment rates.
Palm Beach County rates are presented.
97
VILLAGE OF NORTH PALM BEACH
PRINCIPAL EMPLOYERS...
Unaudited
Source: Business Development Board of Palm Beach County
Employer: Palm Beach County
Information is not available for the Village of North Palm Beach.
** Percentage of total employment is calculated using Palm Beach County's
available labor force in each of the respective years presented.
* ** FY 2014 data was not available - FY 2004 & 2013 data presented
Notes:
(1) Formerly Columbia Palm Beach Health Care Systems, Inc
(2) Intracoastal Health Systems, Inc - now part of Tenet Healthcare Corp
98
2013 **
2004
Percentage
Percentage
of Total
of Total
Employer
Employees
Employment
Employees
Employment
Palm Beach Country School Board
21,449
3.31%
18,672
3.14%
Tenet Health Care Corp
6,100
0.94%
4,705
0.79%
Palm Beach County Government
5,330
0.82%
9,000
1.52%
NextEra Energy (Florida Power & Light)
3,804
0.59%
2,800
0.47%
G4S (Wachenhut Corp)
3,000
0.46%
550
0.09%
Office Depot
2,000
0.31%
2,780
0.47%
Florida Alantic University
2,980
0.46%
1,400
0.24%
Hospital Corporation of America (HCA) (1)
2,714
0.42%
4,000
0.67%
Veterans Health Administration
2,700
0.42%
1,400
0.24%
Boca Raton Resort & Club
1,292
0.20%
2,380
0.40%
Bethesda Memorial Hospital
2,643
0.41%
1,280
0.22%
Boca Raton Regional Hospital (2)
2,250
0.35%
1,700
0.29%
The Breakers Hotel
1,800
0.28%
2,000
0.34%
Jupiter Medical Center
1,600
0.25%
1,400
0.24%
City of West Palm Beach
1,324
0.20%
1,500
0.25%
Total
60,986
9.42%
55,567
9.37%
Source: Business Development Board of Palm Beach County
Employer: Palm Beach County
Information is not available for the Village of North Palm Beach.
** Percentage of total employment is calculated using Palm Beach County's
available labor force in each of the respective years presented.
* ** FY 2014 data was not available - FY 2004 & 2013 data presented
Notes:
(1) Formerly Columbia Palm Beach Health Care Systems, Inc
(2) Intracoastal Health Systems, Inc - now part of Tenet Healthcare Corp
98
VILLAGE OF NORTH PALM BEACH
Full-Time
Equivalent Village Government Employees by Function
LAST TEN FISCAL YEARS ( ")
Unaudited
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Number of Employees:
General Government
Village Manager - Full-Time
1
1
1
1
1
1
1
1
1
1
Assistant Village Manager - Full-Time
1
0
0
0
0
0
0
0
0
0
Systems Specialist
Full-Time
1
2
2
2
2
2
2
3
3
3
Part -Time
0
0
0
0
1
1
1
0
0
0
Executive Secretary - Full-Time
1
1
1
1
1
1
1
1
1
1
Human Resources
Full-Time
2
2
2
2
2
2
2
2
2
2
Part -Time
0
0
0
0
0
0
0
0
0
0
Village Clerk- Full-Time
3
3
3
3
3
3
3
3
3
3
Finance
Full-time
5
5
5
5
5
5
5
5
5
5
Part -Time
0
0
0
1
1
1
1
1
1
1
Public Works
Full-time
62
54
47
48
38
37
37
37
37
37
Part -Time
6
3
0
0
0
0
0
0
0
0
Public Safety
Full-time
61
66
68
68
67
67
67
0
0
0
Part -Time
15
14
13
12
11
12
12
0
0
0
Law Enforcement
Full-time
0
0
0
0
0
0
0
43
43
43
Part -Time
0
0
0
0
0
0
0
12
13
13
Fire Rescue
Full-time
0
0
0
0
0
0
0
24
24
24
Part -Time
0
0
0
0
0
0
0
0
0
0
Community Development and Planning
Full-time
0
0
9
10
9
9
9
8
8
10
Part -Time
0
0
1
1
2
2
2
2
2
1
Leisure Services
Library
Full-time
8
7
7
7
6
6
6
6
6
6
Part -Time
7
8
8
8
10
10
10
10
10
10
Recreation
Full-time
5
15
15
17
9
7
6
6
6
6
Part -Time
15
31
39
42
42
42
43
43
43
43
Other Government - Country Club
Full-time
24
18
19
18
5
5
7
5
6
8
Part -Time
27
24
25
22
21
21
64
56
54
65
Total Number of Employees Budgeted FY Ending
244
254
265
268
236
234
279
268
268
282
Source: Village of North Palm Beach Budget Report
99
VILLAGE OF NORTH PALM BEACH
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Unaudited
FUNCTION/PROGRAM
GENERAL GOVERNMENT
Number of Parcels
PUBLIC WORKS
Sanitation (Tons of Refuse Collected)
No. of collection units for solid waste (residential)
Number of vehicles maintained
Number of repair overlays completed (miles)
PUBLIC SAFETY
Number of arrests by police officers
Number of traffic citations issued
EMS average response times (minutes)
Number of EMS calls
COMMUNITY DEVELOPMENT & PLANNING
Building Department - Number of Permits
Number of code enforcement violations
Number of code violations brought to board/magistrate
(Calendar Yr End)
RECREATION
Number of community events presented
Number of registrants in athletic programs
LIBRARY
Library - Number of Volumes
OTHER GOVERNMENT
Country Club
Number of Golf Members
Number of Tennis Members
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-
-
7,411
7,422
7,472
7,466
7,466
7,473
7,470
7,471
14,037
13,203
12,085
11,974
10,667
10,165
9,962
10,065
10,720
10,720
7,519
7,558
7,152
7,163
7,214
7,070
7,071
7,076
7,471
7,616
95
95
104
104
110
110
98
98
111
98
2.462
2.935
2
3
2.5
2.71
-
-
-
-
331
410
545
549
448
402
260
211
216
238
5,743
4,272
4,269
5,520
6,305
4,951
2,564
2,566
1,254
2,799
3.98
4.69
4.73
5.17
5.01
5.12
5.19
5.26
5.11
5.10
965
1,056
1,034
1,114
1,214
1,146
1,179
1,326
1,296
1,110
201
(1)
1,875
1,619
1,548
1,744
1,616
1,835
2,480
2,103
-
1,767
1,617
729
613
391
575
817
790
887
165
144
126
115
73
38
72
100
62
28
22
21
24
23
28
28
38
49
37
53
1,400
1,520
1,600
1,400
1,125
1,005
1,260
1,311
2,074
1,439
54,074
47,371
42,372
33,122
35,681
39,277
40,658
43,340
44,966
46,546
365
579
389
297
354
298
283
262
250
136
171
171
180
184
173
162
190
194
(1) An accurate number of building permits issued for 2006 is not available - computer systems crash.
Source: Village of North Palm Beach
U.S. Census Bureau
100
VILLAGE OF NORTH PALM BEACH
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Unaudited
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Function/Program:
General Government
No. of General Government Buildings
11
11
11
11
23
23
23
23
23
23
Public Works
Square Miles
5.18
5.18
5.18
5.18
5.18
5.18
5.18
5.18
5.18
5.18
Miles of Streets
36.00
36.00
36.00
36.00
36.00
36.00
36.00
36.00
36.00
36.00
Number of Street Lights (within corp =oundin
425
425
425
513
513
513
513
513
513
513
Public Safety
Fire:
Number of Stations
1
1
1
1
1
1
1
1
1
1
Number of Fireman & Officers
8
0
0
0
0
0
0
0
0
0
Number of Firemen/Paramedics /EMTs
0
23
23
23
23
23
23
22
22
22
Number of Fire Captains
0
0
0
0
0
0
0
1
1
1
Police /EMS Protection:
Number of Stations
1
1
1
1
1
1
1
1
1
1
Number of Policemen & Officers
35
33
32
32
31
31
31
28
28
Number of Police Captains
0
0
0
0
0
0
0
2
2
2
EMS Protection
13
0
0
0
0
0
0
0
0
0
Leisure Services
Recreation
Number of Parks
4
4
4
4
4
4
4
4
4
4
Public Tennis Courts
4
2
2
2
2
2
2
2
2
2
Swimming Pool
1
1
1
1
1
1
1
1
1
1
Number of Marinas
1
1
1
1
1
1
1
1
1
1
Library
Number of Libraries
1
1
1
1
1
1
1
1
1
1
Number of Volumes
54,074
47,371
42,372
33,122
35,681
39,277
40,658
43,340
44,966
46,546
Other Government
Country Club
Golf Course
1
1
1
1
1
1
1
1
1
1
Driving Range
1
1
1
1
1
1
1
1
1
1
Tennis Courts
10
10
10
10
10
10
10
10
10
10
Restaurant
0
0
0
0
0
1
1
1
1
1
Snack Bar
0
0
0
0
0
1
1
1
1
1
101
REQUIRED REPORTS
NH NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS EVERETT 8. NOWLCN (1 M.I qS4). CPA
EDWARDT. WXT, CPA
WILLIAM B. MINER, CPA
WEST PALM BEACH OFFICE ROBERT W. HENOR171, JR.! CPA
JANET R. SARICEVICH, CPA
NORTH BRIDGE CENTRE TERRY L MORTON, JR.. CPA
515 N. FLAGLER DR V E. SVrrE 170D N. RONALD SENN M. CVA, ABV. CFF, CPA
POST OFFICE BOX 347 ALEXIA G. VARGA, CFE, CPA
WEST PALM BEACH, FLORIDA 33402.0347 EDWARD T HOLT, JFI_ PFS, CPA
TELEPHONE (561) 659 -3060 BRIAN J. ERE50A, CFFA, CPA
FAX [561 ] 635.0628
W W W.NH MCPA.COM KATHLEEN A. MINER, CPA
J, MICHAEL STEVENS, CPA
JARRETr A. PERRY, CPA
KARA D. PETERSON, CFE, CPA
MARK J. BYMA$TER. CFE, CPA
RUDINA TORO, CPA
RYAN M. SHORE, CFF . CPA
REPORT ON INTERNAL CONTROL OVER TIMOTHY H,SCHMECES. CFP, CPA
WE PAN, CPA
FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN BELLE GLADE OFFICE
333 S.E. 2nd STREET
AUDIT OF FINANCIAL STATEMENTS PpSTRIDA33 30- 338
BELLE GLADE, FLORIDA 33430 -0338
PERFORMED IN ACCORDANCE WITH TELEPHONE (561)996 -5612
FAX (551) 996-624B
GO VERNMENT A UDITING STANDARDS
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the Village of North Palm Beach, Florida, as of and for
the year ended September 30, 2014, and the related notes to the financial statements, which
collectively comprise the Village of North Palm Beach, Florida's basic financial statements and
have issued our report thereon dated March 18, 2015.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village of
North Palm Beach, Florida's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Village of North Palm Beach, Florida's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Village of North Palm
Beach, Florida's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
102
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of North Palm Beach,
Florida's financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
West Palm Beach, Florida
March 18, 2015
103
NH NOWLEN, HOLT & MINER, P.A.
MCERTIFIED PUBLIC ACCOUNTANTS EVERETT S. NOWLEN (1930.1BM). CPA
EDWARD T. HOLT. CPA
WILLIAM B. MINER, CPA
W'I:ST PAI -L7 B F.ACII OFTICF ROBERT W. HENORIR, JR., CPA
JANET R. BARICEMI-I. CPA
NORLI IBRI DGE CENTRE TERRY L. MORTON, JR., CPA
515 N. FLACLER DRIVE, SUITE 1700 N. RONAU) BE NN ETT. CVA. ABV. CFF, CPA
POST OFFICE. 13OX "1.17 ALEXIA G. VARGA, CFE, CPA
WEST PALM BEACH. FLORIDA 33402 -0347 EDWARD T. HOLT, JR., PFS, CPA
TELEPHONE (561)!59 -3W BRIAN J. BRESCIA, CFP°, CPA
FAX (,%I) 835 -0628
W W W.NHMCPA.COA7 KATHLEEN A. MINER, CPA
J. MICHAEL STEVEN S. CPA
JARRETT A. PERRY, CPA
KARA D. PETERSON, CFE, CPA
MARK J. BYMASTER. CFE, CPA
MANAGEMENT LETTER IN ACCORDANCE WITH RYAN M RlSHHOREORF TOR, CFF^, O, CPA
. CPA
TIMOTHY H, SCHMEDES. CFI' , CPA
THE RULES OF THE AUDITOR GENERAL WE PAN, CPA
OF THE STATE OF FLORIDA BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX $36
BELLE GLADE, FLO RI DA 33430-0338
TELEPHONE (55 1) 996 -5612
The Honorable Mayor and Members of the Village Council FAX (551) 996-6248
The Village of North Palm Beach, Florida
Report on the Financial Statements
We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for
the fiscal year ended September 30, 2014, and have issued our report thereon dated March 18,
2015.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, and Chapter 10.550, Rules of
the Florida Auditor General.
Other Reports
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards and Independent Accountant's Report on an
examination conducted in accordance with AICPA Professional Standards, Section 601, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Disclosures in those reports, which are dated March 18, 2015, should be considered in conjunction
with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the prior year that
required corrective actions.
104
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This
information is disclosed in Note 1 to the financial statements.
Financial Condition
Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our
determination as to whether or not the Village of North Palm Beach, Florida has met one or more
of the conditions described in Section 218.503(1), Florida Statutes, and identification of the
specific condition(s) met. In connection with our audit, we determined that the Village of North
Palm Beach, Florida did not meet any of the conditions described in Section 218.503(1), Florida
Statutes, during the fiscal year ended September 30, 2014.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures. It is management's responsibility to monitor the
Village of North Palm Beach, Florida's financial condition, and our financial condition
assessment was based in part on representations made by management and the review of
financial information provided by same. Our assessment was done as of the fiscal year end. The
results of our procedures did not disclose any matters that are required to be reported.
Annual Financial Report
Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our
determination as to whether the annual financial report for the Village of North Palm Beach,
Florida for the fiscal year ended September 30, 2014, filed with the Florida Department of
Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the
annual financial audit report for the fiscal year ended September 30, 2014. In connection with our
audit, we determined that these two reports were in substantial agreement.
Special District Component Units
Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not
a special district that is a component unit of a county, municipality, or special district, provided the
financial information necessary for proper reporting of the component unit, within the audited
financial statements of the county, municipality, or special district in accordance with Section
218.39(3)(b), Florida Statutes.
Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor
General, there are no special district component units of the Village of North Palm Beach, Florida.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the Management
Letter any recommendations to improve financial management. In connection with our audit, we
did not have any such recommendations.
105
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which
warrants the attention of those charged with governance. In connection with our audit, we did not
have any such findings.
Single Audits
The Village expended less than $500,000 of federal awards and less than $500,000 of state
financial assistance for the year ended September 30, 2014, and was not required to have a federal
single audit or a state single audit.
Response to Management Letter
There were no items that required a response by management.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, management, the audit committee, Village Council, and federal and state
awarding agencies and pass - through entities, and is not intended to be and should not be used by
anyone other than these specified parties.
March 18, 2015
West Palm Beach, Florida
106
N NOWLEN, HALT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
NORTH BRIDGE CENTRE
515 N. FLAGLER DRIVE. SVrrE 170D
POST OFFICE BOX 347
WEST PALM BEACH, FLORIDA 33402.0347
TELEPHONE (561) 659 -3060
FAX [561 ] 635.0628
W W W.NH MCPA.COM
INDEPENDENT ACCOUNTANT'S REPORT
ON COMPLIANCE WITH SECTION 218.415,
FLORIDA STATUTES
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
EVERETT 8. NOWLEN (1 M- 19$4). CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER, CPA
ROBERT W. HENORIX, JR,. CPA
JANET R. SARICEVICH, CPA
TERRY L MORTON, JR., CPA
N. RONALd SENN M. CVA, ABV. CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T HOLT, JR_ PFS, CPA
BRIAN J. ORE50A, CFFA, CPA
KATHLEEN A. MINER, CPA
J, MICHAEL STEVENS. CPA
JARRETT A. PERRY, CPA
KARA D. PETERSON, CFE, CPA
MARK J. BYMASTER. CFE, CPA
RUDINATORO, CPA
RYAN M. SHORE, CFP', CPA
TIMOTHY H, SCHMECES. CFP', CPA
WEI PAN, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430 -0338
TELEPHONE (561) 996 -5612
FAX (551) 996-624B
We have examined the Village of North Palm Beach, Florida's compliance with Section 218.415, Florida
Statutes during the year ended September 30, 2014. Management is responsible for the Village of North
Palm Beach, Florida's compliance with those requirements. Our responsibility is to express an opinion
on the Village of North Palm Beach, Florida's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
about the Village of North Palm Beach, Florida's compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a legal determination on
the Village of North Palm Beach, Florida's compliance with specified requirements.
In our opinion, the Village of North Palm Beach, Florida complied, in all material respects, with the
aforementioned requirements for the year ended September 30, 2014.
This report is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and Florida House of Representative, the Florida Auditor General,
applicable management, and the Village Council, and is not intended to be and should not be used by
anyone other than these specified parties.
West Palm Beach, Florida
March 18, 2015
107
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL