2015 CAFRA
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The Village of
North Palm Beach, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2015
Prepared by:
Finance Department
Samia Janina
Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
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 ........................... .............................72
Schedule of Changes in Net Pension Liability — General Employees Retirement Fund .......................73
Schedule of Changes in Net Pension Liability — Fire and Police Retirement Fund . .............................74
Schedules Contributions and Investment Returns — Retirement Funds .................. .............................75
Notes to the Schedule of Contributions ................................................................... .............................76
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund .................................................................... .............................77
Notes to the Budgetary Required Supplementary Information ............................... .............................78
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2015
TABLE OF CONTENTS
(Continued)
OTHER SUPPLEMENTARY INFORMATION:
Schedule of Departmental Expenditures— Budget and Actual — General Fund ....... .............................79
Combining Balance Sheet — Nonmajor Governmental Funds ................................. .............................82
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
NonmajorGovernmental Funds ........................................................................... .............................83
Combining Statement of Net Position — Pension Trust Funds ................................. .............................84
Combining Statement of Changes in Fiduciary Net Position — Pension Trust Funds ...........................85
Combining Statement of Agency Net Position ....................................................... .............................86
Combining Schedule of Changes in Agency Net Position ....................................... .............................87
Schedule of Revenues and Departmental Expenses —
Budget and Actual — Country Club Fund — Budgetary Basis ............................... .............................88
STATISTICAL SECTION
NetPosition by Component .................................................................................... .............................89
Changesin Net Position .......................................................................................... .............................90
Fund Balances, Governmental Funds ...................................................................... .............................92
Changes in Fund Balances, Governmental Funds ................................................... .............................93
Net Assessed Value and Estimated Actual Value of Taxable Property .................. .............................95
Property Tax Rates - Direct and Overlapping Governments .................................... .............................96
Principal Property Taxpayers .................................................................................. .............................97
Property Tax Levies and Collections ...................................................................... .............................98
Ratios of Outstanding Debt by Type ........................................................................ .............................99
Direct and Overlapping Governmental Activities Debt ........... ............................... ............................100
Pledged- Revenue Coverage ..................................................... ............................... ............................101
Demographic and Economic Statistics ..................................... ............................... ............................102
PrincipalEmployers ................................................................ ............................... ............................103
Full -Time Equivalent Village Government Employees by Function ...................... ............................104
Operating Indicators by Function/Program ............................. ............................... ............................105
Capital Asset Statistics by Function/Program .......................... ............................... ............................106
OTHER REPORTS
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .... ............................107
Management Letter in Accordance with the Rules of the Auditor General of the
Stateof Florida .................................................................... ............................... ............................109
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes ......................................... ............................... ............................112
INTRODUCTORY SECTION
March 24, 2016
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, 2015.
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, 2015. 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 (56 %) 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 (1,975 residential permits in FY 2014 and 2,018 residential
permits in FY 2015). The Water Club development Phase I was approved in 2013, began construction
in 2014, with completion scheduled for late 2017. Phase 11, which includes a third tower, was approved
in January 2016. The Village is in the process of developing a Master Plan for development and
redevelopment over the next ten years. It is believed that a clear vision, master plan and definition of
the highest and best use of properties on U.S. 1 and Northlake Boulevard will encourage developers to
invest and have 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 2016, 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.
INITIATIVES AND FUTURE PROJECTS
The FY2015/2016 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 Village Council expanded the Capital Improvement Plan (CIP) from a five (5) year
plan to a ten (10) year plan.
The Community Development Department continues the task of updating our land use code.
The Parks and Recreation Department continues to offer programs for all age groups at each of its six
facilities. 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.
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 in our ten (10) year Capital Improvement Plan (Cl P). 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.
LTA
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 2016. The Dispatch function and
communications, which were transferred to the North County Dispatch Center in Palm Beach Gardens in
October 2014, continues to enhance inter - agency communications and response to criminal activity.
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 will begin union negotiations with two of the Village's collective
bargaining units (police and fire) in June 2016. 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: preparing the
Village for LPR (License Plate Recognition) systems, going from numerous servers to a virtual software
system, continued improvement of the Village website, and upgrading the Village's phone system.
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. An Architect was retained to help define the scope and sizes for a new clubhouse
and pool amenities.
For Fiscal Year 2015 -2016, the Village Council developed the following goals to guide their budget
process:
1. Provide a sustainable financial base for the Village
2. Maintain and improve all recreational facilities of the Village
3. Maintain a high quality of life and improve the overall appearance in the Village
4. Build a new Country Club Clubhouse
5. Develop a Master Plan for economic development in our business districts and community
development in our neighborhoods
6. Continuously improve the way the Village operates
7. Implement the Pay for Performance System
8. Establish a long -term (10 -year) capital plan
The ultimate goal is to sustain the Village as the "Best Place to Live Under the Sun."
►•i
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, 2014. The
Certificate of Achievement is a prestigious national award, recognizing conformance with the highest
standards for preparation of state and local government financial reports.
Respectfully submitted,
Sarnia Janjua
Director of Finance
NI
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Ja o e el ly
I ge Manager
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, 2015
vii
Name
Robert A. Gebbia
David B. Norris
Doug Bush
Darryl C. Aubrey
Mark Mullinix
James P. Kelly
Samia Janjua
Melissa Teal
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Government Finance Ufticers. Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of Forth Palm Beach
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Ycar Ended
September 30, 2014
*IA�e AOO'--IAO��
F.xecutive Director /CF
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FINANCIAL SECTION
NH
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NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT S. NOWLEN (193&1984), CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
WEST PALM BEACI I OFFICE
JANET R. SARICEVICH, CPA
NpRFRBRiDpE CENTRE
TERRY L. MORTON, JR., CPA
515 N. FLAG LER Dkl VE, SUITE 170D
N. RONALD BENNETT, OVA, GA CFE, CPA
ALEXIA G. VRFiGA, CFE, CPA
POST OFFICE BOX 347
EDWARD T HOLT. JR., PFS, CPA
WEST PALM BEACH, FLORIDA 3.3302.0347
BR IAN J, BRESCIA, CFP', CPA
TELEPHONE (561) 659 -3fM
PAX (561) 83547628
W W W_N H MCPA.COM
KATHLEEN A. MINER, CPA
MARK J. SYMASTER. CFE, CPA
RYAN M. SHORE, CFP', CPA
TIMOTHY H. SCHMEDES, CFP-. CPA
WEI PAN, CPA
WILLIAM C. KISKER, CPA
INDEPENDENT AUDITOR'S REPORT
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 336
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX (561) 996.6248
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Report on the Financial Statements
We have audited the 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, 2015, 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, 2015, 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 discussed in Note 18 to the financial statements, the Village implemented Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension
Transition for Contributions Made Subsequent to the Measurement Date an Amendment of
GASB Statement No. 68, during the year ended September 30, 2015. Our opinions are not
modified with respect to this matter.
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 72 through 76, and budgetary comparison
information on pages 77 through 78 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.
2
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 16, 2016, 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 16, 2016
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, 2015. 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
2015
2014
(Decrease)
Page #
Total net position
$23.43
$24.61
($1.18)
14
Unrestricted net position available for future use
$6.71
$7.55
($0.84)
14
Governmental net position
$21.05
$22.19
($1.14)
14
Total revenues from all sources
$23.96
$23.00
$0.96
15
Governmental revenues
$20.16
$19.34
$0.82
15
Total cost of all Village programs
$25.13
$24.50
$0.63
15
Governmental revenues over (under) expenses
($1.13)
($1.26)
$0.13
16
General fund revenues over (under) expenses
$0.51
$0.61
($0.10)
19
General fund unassigned fund balance
$10.80
$12.39
($1.59)
17
As a percent of general fund expenditures
55.03%
66.07%
- 11.04%
Country Club revenues over (under) expenses
($0.04)
($0.25)
$0.21
22
Change in total long -term debt for the Village
($0.40)
($0.38)
($0.02)
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.
S
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, Capital Projects Fund, and the On- Behalf Pension
Contributions Fund (one of the four Special Revenue Funds), all of which are considered major
funds (generally accepted accounting principles define a fund as major based on that fund's size
relative to the other funds of the government; a fund may also be reported as major if the
government's officials believe that fund is particularly important to financial statement users).
The remaining funds are considered non - major funds, and data from these governmental funds 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
The Village implemented Governmental Accounting Standard Boards ( "GASB ") Statement No. 68
"Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27" ( "GASB
968 ") and GASB Statement No. 71 "Pension Transition for Contributions Made Subsequent to the
Measurement Date an amendment of GASB Statement No. 68" ( "GASB 971" and collectively
"Statements ") in 2015. These Statements require the Village to recognize a net pension liability, deferred
outflows of resources (including pension contributions made after the measurement date) and deferred
inflows of resources for its two retirement plans, on financial statements prepared on the economic
resources measurement focus and accrual basis of accounting (i.e. the statement of net position) and
presents more extensive note disclosures. The adoption of these Statements had no impact on the
Village's governmental fund financial statements, which continue to report expenditures in the amount of
the contractually required contributions, and on the Village's proprietary fund, which had no employees
in the plans. However, the adoption has resulted in the restatement of the Village's net position as of
September 30, 2014 for its government -wide financial statements to reflect the reporting of net pension
liabilities, deferred outflows of resources, and deferred inflows of resources for each of its qualified
pension plans in accordance with the provisions of these Statements. Net position of the Village's
government -wide financial as of September 30, 2014 was decreased by $4,275,019 reflecting the
cumulative change in accounting principle related to the adoption of these Statements. See Note 8 in the
notes to the basic financial statements for more information regarding the Village's retirement plans.
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 $23.43 million at the close of the most recent
fiscal year.
A significant portion of the Village's net position (70.60 %) 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
Deferred outflows of resources
Liabilities:
Current liabilities
Long -term liabilities
Total liabilities
Deferred inflows of resources:
Net positon:
1,649 1,506
1,649 1,506
1,567
2,475
Table 2
339
1,711
Village of North Palm Beach
8,087
8,486
3,094
Net Position
11,181
11,968
9,654
(In Thousands)
3,238
Governmental
Business -type
14,782
Activities
Activities
Total
2015
2014(1)
2015 2014
2015 2014
$ 14,995
$ 16,849
$ 829 $ 988
$ 15,824 $ 17,837
14,711
14,967
4,787 5,255
19,498 20,222
29,706
31,816
5,616 6,243
35,322 38,059
1,649 1,506
1,649 1,506
1,567
2,475
144
339
1,711
2,814
8,087
8,486
3,094
3,482
11,181
11,968
9,654
10,961
3,238
3,821
12,892
14,782
644 175
644 175
Net investement in capital assets
14,711
14,967
1,834 1,908 16,545
16,875
Restricted
177
181
177
181
Unrestricted
6,168
7,039
545 514 6,713
7,553
Total net position
$ 21,056
$ 22,187
$ 2,379 $ 2,422 $ 23,435
$ 24,609
(1) Restated for GASB 68
Governmental Activities
The cost of all governmental activities this year was $21.29 million. As shown on Table 3, Changes in
Net Position, those who directly benefited from the programs paid for $3.35 million of this cost and
$16.81 million was financed through general revenues. Governmental activities decreased the Village's
net position by $1.13 million, thereby accounting for 96% 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.
7
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 (1)
Net position - end of year
1) Restated for GASB 68
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Governmental Business -type
Activities Activities Total
2015
2014
2015
2014
2015
2014
$ 3,353
$ 3,823
$ 3,789
$ 3,646
$ 7,142
$ 7,469
82
90
82
90
27
16
27
16
11,365
10,155
11,365
10,155
282
266
282
266
2,267
2,277
2,267
2,277
1,332
1,261
1,332
1,261
1,253
1,233
1,253
1,233
109
17
11
11
120
28
57
146
57
146
30
56
30
56
20,157
19,340
3,800
3,657
23,957
22,997
3,029
2,696
3,029
2,696
9,013
9,260
9,013
9,260
4,964
4,485
4,964
4,485
1,309
1,046
1,309
1,046
2,973
3,114
2,973
3,114
3,843
3,902
3,843
3,902
21,288
20,601
3,843
3,902
25,131
24,503
(1,131)
(1,261)
(43)
(245)
(1,174)
(1,506)
22,187
23,448
2,422
2,667
24,609
26,115
$ 21,056
$ 22,187
$ 2,379
$ 2,422
$ 23,435
$ 24,609
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)
2015
2014
Total Cost
Net Cost
Total Cost
Net Cost
of Services
of Services
of Services
of Services
$ 3,029
$ (2,894)
$ 2,696
$ (2,577)
9,013
(8,424)
9,260
(8,635)
4,964
(4,424)
4,485
(4,052)
1,309
(145)
1,046
575
2,973
(1,939)
3,114
(1,983)
$ 21,288 $ (17,826) $ 20,601 $ (16,672)
At the end of the current year, as compared to the prior year, the total cost of services increased by $0.69
million. This change in cost can be broken down as follows:
• Several departments experienced an overall increase primarily due to the increases in personnel -
related costs (for example, General Government increased by $0.33 million, Public Works
increased by $0.48 million and Community Development increased by $0.26 million).
• Public Safety decreased by $0.25 million due to the implementation of GASB 68 which reduced
pension expense.
• Leisure Services decreased by $0.14 million due to the Village taking over the tennis and pool
operations.
Business -Type Activities
At the end of the current year, as compared to the prior year, Charges for Services (revenues) for the
Business -type activities increased by $0.14 million and expenses decreased by $0.06 million. Net positon
of the Proprietary Fund (Country Club) at September 30, 2015, were $2.38 million. Net position
decreased by $43,415 in the current year vs. $245,495 in the prior year, resulting in a positive impact of
$202,080.
The positive impact in the Village's Business -type activities was largely the result of an increase in
revenues from both the Golf and Restaurant operations. The Enterprise Fund is on solid financial footing;
however, there are serious infrastructure issues related to the clubhouse that need to be addressed. The
Village is in the process of evaluating the construction of a new clubhouse; therefore, no major repairs to
the current building are budgeted in the upcoming year.
9
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. hi 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 $13.22
million, a $0.98 decrease over the 2014 fund balance of $14.20 million. Approximately 97% of the
combined ending fund balance ($12.89 million) constitutes unrestricted (unassigned /assigned) fund
balance, which is available for spending at the government's discretion. The remainder of fund balance
($0.33 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 $10.80 million while the General Fund total fund
balance was $11.41 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 55% of total general fund expenditures, while total fund balance represents 58% of that same amount.
The general fund unassigned fund balance ($10.80 million) represents a decrease of $1.58 million over
the 2014 unassigned general fund balance of $12.38 million. The decrease is largely due to the Village
utilizing $1.64 million from its General Fund unassigned fund balance to fund the FY 2015 portion of the
Capital Improvement Plan (CIP) rather than raising its millage rate.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were $1,860,311 and can be briefly
summarized as follows:
• Small Business Grant Carryover ($66,435)
• Prior Year Open Purchase Order Carryover ($150,376)
• Use of General Fund Unassigned Fund Balance — CIP Funding ($1,643,500)
General Fund Budget Analysis
As shown on pages 79 -81 of this report, in the Schedule of Departmental Expenditures — Budget and
Actual, there was an overall favorable budget to actual cost variance of $2,711 in General Fund
Departmental Expenditures. The areas of significant budget to actual variances for the General Fund
expenditures are summarized below:
The negative variance in Public Safety ($308,548) is a result of the increase in personnel -
related costs associated with the implementation of the Collective Bargaining Agreements for
two unions.
• During the budgeting process, various assumptions, along with previous year costs, are used
in the development of the current year budget for operating costs. To counter the increase in
employee compensation costs, the Village Manager directed Department Directors to reduce
10
spending in a manner that would minimize the impact on our residents. The Directors did an
admirable job identifying areas to cut operating costs resulting in favorable budget variances
(The actual costs came in well under the projected budgeted amount.... overall budget to
actual savings in operating costs of $368,821). The areas of significant budgetary savings for
the General Fund operating costs are summarized below:
• Repair and maintenance costs ($66,714)
• Property & casualty insurance ($25,248)
• Fuel costs for Village vehicles ($80,533)
• Materials & Supplies ($81,677)
• Utilities ($59,405)
• Travel, Training and Conferences ($37,223)
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 $1.49
million, a $0.61 million increase over the 2014 fund balance of $0.89 million. This is primarily due to the
transfer of funds from General Fund Unassigned Fund Balance to finance several capital projects.
On- Behalf Pension Contribution Fund
The Village's On- Behalf Pension Contribution Fund accounts for the contributions made by the State to
the Police and Fire Pension Plan on behalf of the Village's employees.
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, 2015 and 2014 amounts to $19.50 million and $20.22 million, respectively (net of
accumulated depreciation).
11
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business -type
Activities Activities
2015
2014
2015
2014
Total
2015 2014
Land
$ 2,056
$ 2,056
$ 1,051
$ 1,051
$ 3,107
$ 3,107
Construction in progress
267
88
267
88
Buildings and improvements
23,136
23,095
1,405
1,405
24,541
24,500
Improvements other than buildings
272
272
272
272
Improvements - golf course
5,824
5,824
5,824
5,824
Furniture, fixtures and equipment
7,503
6,904
783
776
8,286
7,680
Total assets
32,962
32,143
9,335
9,328
42,297
41,471
Less accumulated depreciation
(18,251)
(17,176)
(4,547)
(4,073)
(22,798)
(21,249)
Net position
$ 14,711
$ 14,967
$ 4,788
$ 5,255
$ 19,499
$ 20,222
Additional information on the Village's capital assets can be found in Note 5 on pages 44 through 45 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 $2.97 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
2015 2014 2015 2014 2015 2014
Loans payable $ 2,825 $ 3,097 $ 2,825 $ 3,097
Capital leases 148 274 148 274
Total $ $ $ 2,973 $ 3,371 $ 2,973 $ 3,371
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 decreased to $10.80 million during the current 2015
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
THIS PAGE INTENTIONALLY LEFT BLANK
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
September 30, 2015
Governmental Business -type
Activities Activities Total
Assets
14,711,016
1,833,975 16,544,991
Restricted for:
Cash and cash equivalents
$ 4,809,660 $
659,783 $
5,469,443
Investments
8,985,759
32,431
8,985,759
Accounts receivable
418,001
18,003
436,004
Inventories
144,749
125,271
270,020
Prepaids
10,845
6,441
17,286
Due from other governments
448,592
8,700
448,592
Restricted assets:
180,193
95,509
275,702
Cash and cash equivalents
177,431
177,431
Intangible assets, net of amortization
888,662
18,892
18,892
Capital assets:
7,199,203
2,646,893
9,846,096
Nondepreciable
2,322,597
1,051,311
3,373,908
Depreciable (net of depreciation)
12,388,419
3,736,526
16,124,945
Total assets
29,706,053
5,616,227
35,322,280
Deferred outflows of resources
14,711,016
1,833,975 16,544,991
Restricted for:
Pension related items
1,649,135
Recreation
1,649,135
Total deferred outflows of resources
1,649,135
32,431
1,649,135
Liabilities
5,740
5,740
Library
Accounts payable
697,366
39,238
736,604
Accrued liabilities
689,081
6,168,366
689,081
Deposits
$ 21,056,813 $
8,700
8,700
Unearned revenue
180,193
95,509
275,702
Noncurrent liabilities:
Due within one year
888,662
447,389
1,336,051
Due in more than one year
7,199,203
2,646,893
9,846,096
Total liabilities
9,654,505
3,237,729
12,892,234
Deferred inflows of resources
Unearned revenue 205,715 205,715
Pension related items 438,155 438,155
Total deferred inflows of resources 643,870 643,870
Net position
Net investment in capital assets
14,711,016
1,833,975 16,544,991
Restricted for:
Recreation
91,695
91,695
Streets and roads
32,431
32,431
Public safety
5,740
5,740
Library
45,294
45,294
Other purposes
2,271
2,271
Unrestricted
6,168,366
544,523 6,712,889
Total net position
$ 21,056,813 $
2,378,498 $ 23,435,311
See notes to the financial statements.
14
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2015
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
$ 3,028,716 $
131,445
9,013,101
537,064
4,963,704
514,354
1,308,924
1,163,875
2,973,687
1,006,382
21,288,132
3,353,120
3,842,660 3,788,852
3,842,660 3,788,852
$ 25,130,792 $ 7,141,972
Program Revenues Net Expense (Revenue) and
Operating Capital Changes in Net Position
Grants and Grants and Governmental Business -type
Contributions Contributions Activities Activities Total
$ 3,627 $
28,233 23,606
25,012
25,355 2,942
82,227 26,548
$ 82,227 $ 26,548
General Revenues:
Taxes:
Property taxes
Local option gas taxes
Utility service taxes
Franchise taxes
Sales and use taxes
Investment income - unrestricted
Miscellaneous
Gain on disposal of equipment
Total general revenues
Change in net position
$ (2,893,644) $
$ (2,893,644)
(8,424,198)
(8,424,198)
(4,424,338)
(4,424,338)
(145,049)
(145,049)
(1,939,008)
(1,939,008)
(17,826,237)
(17,826,237)
(53,808) (53,808)
(53,808) (53,808)
(17,826,237) (53,808) (17,880,045)
11,364,888
11,364,888
282,549
282,549
2,267,118
2,267,118
1,253,139
1,253,139
1,332,209
1,332,209
108,794
10,393 119,187
57,137
57,137
30,457
30,457
16,696,291 10,393 16,706,684
(1,129,946) (43,415) (1,173,361)
Net position, beginning of year, as restated
22,186,759
2,421,913
24,608,672
Net position, end of year $
21,056,813 $
2,378,498
$ 23,435,311
See notes to the financial statements.
16
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2015
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Capital
On- Behalf
Nonmajor
Total
$ 377,190
$ 15,706
Projects
Pension
Governmental
Governmental
General
Fund
Contributions
Funds
Funds
Assets
44,028
Unearned revenue
180,193
Cash and cash equivalents
$ 3,020,678
$ 1,420,298
$
$ 368,684
$ 4,809,660
Investments
8,985,759
8,985,759
Accounts receivable
418,001
205,715
Total deferred inflows of resources
418,001
Inventories
144,749
205,715
Fund balances
144,749
Prepaids
10,845
Nonspendable:
10,845
Due from other funds
Inventories and prepaids
44,028
44,028
Due from other governments
150,252
298,340
448,592
Restricted cash and cash equivalents
131,931
45,500
91,695
Streets and roads
177,431
Total assets
$ 12,862,215
$ 1,509,826
7 298,340
$ 368,684
$ 15,039,065
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable
$ 377,190
$ 15,706
$ 298,340 $ 6,130
$ 697,366
Accrued liabilities
689,081
689,081
Due to other funds
44,028
44,028
Unearned revenue
180,193
180,193
Total liabilities
1,246,464
15,706
298,340 50,158
1,610,668
Deferred inflows of resources
Unearned revenue
205,715
205,715
Total deferred inflows of resources
205,715
205,715
Fund balances
Nonspendable:
Inventories and prepaids
155,594
155,594
Restricted for:
Recreation
46,195
45,500
91,695
Streets and roads
32,431
32,431
Police
5,740
5,740
Library
45,294
45,294
Other purposes
2,271
2,271
Assigned for:
Small business grants
6,435
6,435
Subsequent year's expenditures
313,453
313,453
Special revenue funds
318,526
318,526
Capital project funds
1,448,620
1,448,620
Unassigned
10,802,623
10,802,623
Total fund balances
11,410,036
1,494,120
318,526
13,222,682
Total liabilities, deferred inflows of
$ 12,862,215
$ 1,509,826
$ 298,340 $ 368,684
$ 15,039,065
resources, and fund balances
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, 2015
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
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
Net pension liability
Other postemployement benefits
Accrued compensated absences
Deferred outflows and inflows of resources related to pensions are
applicable to future periods and, therefore, are not reported in the
govenmental funds:
Pension related deferred outflows
Pension related deferred inflows
Net position of governmental activities
See notes to the financial statements.
IN
$ 32,962,661
(18,251,645)
(50,000)
(4,561,092)
(2,210,054)
(1,266,719)
1,649,135
(43 8,155)
$ 13,222,682
14,711,016
(8,087,865)
1,210,980
$ 21,056,813
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2015
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
513,419 (1,484,476)
(6,626) (977,683)
2,091,246 2,091,246
(2,091,246) (2,091,246)
(2,091,246) 2,091,246
(1,577,827) 606,770 (6,626) (977,683)
12,987,863 887,350 325,152 14,200,365
$ 11,410,036 $ 1,494,120 $ $ 318,526 $ 13,222,682
See notes to the financial statements.
19
Capital
On- Behalf
Nonmajor
Total
Projects
Pension
Governmental
Governmental
General
Fund
Contributions
Funds
Funds
$ 15,167,694
$
$
$
$ 15,167,694
947,158
947,158
1,437,218
298,340
22,688
1,758,246
2,231,673
2,231,673
128,235
128,235
108,794
108,794
122,107
122,107
20,142,879
298,340
22,688
20,463,907
2,904,553
2,904,553
8,667,737
298,340
8,966,077
4,255,636
4,255,636
1,270,399
1,270,399
2,514,495
2,514,495
16,640
1,484,476
29,314
1,530,430
19,629,460
1,484,476
298,340
29,314
21,441,590
513,419 (1,484,476)
(6,626) (977,683)
2,091,246 2,091,246
(2,091,246) (2,091,246)
(2,091,246) 2,091,246
(1,577,827) 606,770 (6,626) (977,683)
12,987,863 887,350 325,152 14,200,365
$ 11,410,036 $ 1,494,120 $ $ 318,526 $ 13,222,682
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, 2015
Net change in fund balances - total governmental funds $ (977,683)
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 $ 1,380,016
Less: current year depreciation (1,628,546)
(248,530)
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 (7,381)
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 (57,353)
Change in net pension liability and related deferred amounts 415,178
Change in other postemployement benefits (254,177)
103,648
Change in net position $ (1,129,946)
See notes to the financial statements.
U11
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
Proprietary Fund
September 30, 2015
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
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
$ 659,783
18,003
125,271
6,441
809,498
18,892
4,787,837
4,806,729
5,616,227
39,238
8,700
95,509
16,582
147,767
283,040
590,836
96,753
8,193
2,541,947
2,646,893
3,237,729
1,833,975
544,523
$ 2,378,498
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended September 30, 2015
Operating expenses
Golf course maintenance expenses
Enterprise
Operating revenue
93,330
Greens fee /cart rentals /membership fees
$ 2,332,066
Golf shop revenues
407,269
Driving range revenues
313,882
Restaurant revenues
726,229
Miscellaneous
9,406
Total operating revenues
3,788,852
Operating expenses
Golf course maintenance expenses
1,178,337
Clubhouse grounds expenses
93,330
Golf shop expenses
901,511
Food and beverage expenses
887,533
Administrative and general
102,537
Insurance
63,659
Depreciation and amortization
480,574
Total operating expenses
3,707,481
Operating income
81,371
Nonoperating revenues (expenses)
Interest revenue
10,393
Interest expense
(135,179)
Total nonoperating revenues (expenses)
(124,786)
Change in net position (43,415)
Net position - beginning 2,421,913
Net position - ending $ 2,378,498
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, 2015
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
Decrease in accounts receivable
Increase in inventory
Decrease in prepaids
(Decrease) in accounts payable
Increase in deposits
(Decrease) in compensated absences payable
(Decrease) in deferred revenue
Increase in other postemployment benefits
Total adjustments
Net cash provided by operating activities
See notes to the financial statements.
23
Enterprise
$ 3,639,513
(2,293,411)
(986,947)
359,155
(398,642)
(135,179)
(8,161)
(541,982)
10,393
(172,434)
832,217
$ 659,783
$ 81,371
480,574
1,684
(32,046)
12,466
(44,961)
2,000
(663)
(153,023)
11,753
277,784
$ 359,155
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2015
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
Accounts receivable, broker - dealers
Prepaids
Total assets
Liabilities
Accounts payable
Due to others
Total liabilities
Net Position
Held in trust for pension benefits
and other purposes
Employee
Retirement
Funds
$ 950,744
9,033,530
1,148,713
980,088
208,536
3,363,819
9,484,526
2,452,812
1,717,667
47,972
389,562
85,015
Agency
Funds
$ 359,663
1,526
29,864,510 359,663
38,701
359,663
38,701 359,663
$ 29,825,809 $
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, 2015
Investment earnings
Dividends and interest 747,076
Net (decrease) in fair value
of investments (572,219)
Total investment earnings 174,857
Less: investment expenses 158,687
Total net investment earnings 16,170
Total additions 2,097,066
Deductions
Administrative expense 97,512
Benefits 873,586
Refund of contributions 31,984
Total deductions 1,003,082
Change in net position 1,093,984
Net position - beginning 28,731,825
Net position - ending $ 29,825,809
See notes to the financial statements.
25
Employee
Retirement
Funds
Additions
Contributions
Employer
$ 1,439,922
Plan members
342,634
State on- behalf payments
298,340
Total contributions
2,080,896
Investment earnings
Dividends and interest 747,076
Net (decrease) in fair value
of investments (572,219)
Total investment earnings 174,857
Less: investment expenses 158,687
Total net investment earnings 16,170
Total additions 2,097,066
Deductions
Administrative expense 97,512
Benefits 873,586
Refund of contributions 31,984
Total deductions 1,003,082
Change in net position 1,093,984
Net position - beginning 28,731,825
Net position - ending $ 29,825,809
See notes to the financial statements.
25
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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 pension trust funds in the fiduciary funds financial statements.
B. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all non - fiduciary activities of the Village. For the most part,
the effect of interfund activities has been removed from these statements. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely, to a significant extent, on fees and charges
for support.
26
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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, 2015
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis ofAccountiM 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.
W.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis ofAccountiM 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.
Tnvvctmvntc
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, 2015
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 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.
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
Capital Assets and Depreciation (Continued)
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. The Village reports deferred pension
items in connection with its two Retirement Systems. These deferred pension charges are either
(a) recognized in the subsequent period as a reduction of the net pension liability (which includes
pension contributions made after the measurement date) or (b) amortized in a systematic and
rational method as pension expense in future periods.
The 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
Village currently has two types of deferred inflows. The first is local business tax revenues
received prior to the period for which the taxes are levied, these are recognized as income in the
period for which they are levied. The second is deferred pension items in connection with its
two Retirement Systems. These items are amortized in a systemic and rational method and
recognized as a reduction of pension expense in future periods.
Unearned Revenue
The Village reports unearned revenue on its statements of net position and governmental funds
balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition.
In subsequent periods, when revenue recognition criteria are met the unearned revenue is
removed and revenue is recognized.
31
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Compensated Absences
The Village's employees are granted compensated absence pay for vacation and sick leave in
varying amounts based on length of service. Unused compensated absences are payable upon
separation from service. Vacation is accrued as a liability when the employee earns benefits.
This means that the employee has rendered services that give rise to a vacation liability and it is
probable that the Village will compensate the employee in some manner, e.g., in cash or paid
time -off, now or upon termination or retirement. The Village uses the vesting method in
accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for
employees who are eligible to receive termination payments upon separation.
Compensated absences are accrued when incurred in the government -wide and proprietary
financial statements. A liability for these amounts is reported in the governmental funds only if
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.
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial
statements, long -term debt and other long -term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
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.
32
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets. Liabilities, and Net Position or Equity (Continued)
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
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.
33
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
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. Budgetary Data
Formal budgetary integration is employed as a management control device during the year for
the General Fund and the Enterprise Fund. The only governmental fund with a legally adopted
annual budget is the General Fund. 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.
W
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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 1St, 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 $313,454 and the Capital Projects
Fund had $399,588 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 Tan 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, 2015
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, 2015, was 7.3300 ($7.3300 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, 2015, unpaid delinquent
taxes are not material and have not been recorded by the Village.
NOTE 3 — DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2015, the carrying amount of the Village's deposits (including fiduciary
funds) was $4,533,356 and the bank balances totaled $4,529,334. 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.
we
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
TnVeQtmentQ
The State Board of Administration (SBA) administers the Florida PRIME, which is governed by
Chapter 19 -7 of the Florida Administrative Code and Chapters 218 and 215 of the Florida
Statutes. These rules provide guidance and establish the policies and general operating
procedures for the administration of the Florida PRIME. The Florida PRIME 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, which permits money market funds
to use amortized cost to maintain a constant net asset value (NAV) of $1 per share. The fair
value of the position in the Florida PRIME is equal to the value of the pool shares. The
investment in the Florida PRIME is not insured by FDIC or any other governmental agency.
At September 30, 2015, Florida PRIME was assigned a "AAA(m)" principal stability fund rating
by the Standard and Poor's Ratings. Florida PRIME is considered a SEC 20-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, 2015, was
29 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, 2015, the Village had $511,595 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, 2015
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
As of September 30, 2015, 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 $
150,945
N/A
State Board of Administration
Florida PRIME
AAA(m)
511,595
29 days (1)
Money Market Funds
N/R
15121,192
N/A
Commercial Paper
P -1
199,100
154 days
U.S. Government and Agency
Obligations
Aaa
933,311
1.55 yrs.
U.S. Treasury Notes
Aaa
5,655,611
1.69 yrs.
Municipal Bonds
Aa3
120,493
1.09 yrs.
Corporate Bonds
Aa3 to A2
1,861,772
1.83 yrs.
Supra - National Agency Bonds
Aaa
120,038
2.71
Fiduciary Funds:
Money Market Funds
N/R
729,277
N/A
GNMA, FNMA, FHLMC
Pools
N/R
230,559
18.15 yrs.
U.S. Government Agencies
Aaa
729,862
9.44 yrs.
Collateralized Mortgages
Aaa
19,667
23.17 yrs.
Corporate Bonds
Aaa to Baa2
3,363,819
7.67 yrs.
Municipal Bonds
Aa3 to Aa2
208,536
16.45 yrs.
Domestic Common Equity
Securities
N/R
9,033,530
N/A
International Common Equity
Securities
N/R
1,148,713
N/A
Equity Mutual Funds
N/R
4,542,687
N/A
Fixed Income Mutual Funds
N/R
7,394,651
N/A
Real Estate Investment Fund
N/R
1,717,667
N/A
Total investments
$39,793,025
(1) Credit rating by Standard & Poor's
Investments are held in the governmental and fiduciary funds.
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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, 2015, 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.
we
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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. Banks, Qualified Public Depositories with a collateral pledge level of twenty -five percent
or fifty percent;
2. U.S Treasury obligations and obligations the principal and interest of which are backed
or guaranteed by the full faith and credit of the U.S Government;
3. Debt obligations, participations or other instruments issued or fully guaranteed by any
U.S. Federal agency, instrumentality or government sponsored enterprise,
4. Supra - Nationals, U.S. dollar denominated debt obligations of a multilateral organization
of governments where the U.S. is a shareholder and voting member with a minimum
credit quality rating of A- 1 /P -1, AA - /Aa3 or equivalent,
5. U.S. dollar denominated corporate notes, bonds or other debt obligations issued or
guaranteed by a domestic or foreign corporation, financial institution, non - profit or other
entity with a minimum credit quality rating of A- 1 /P -1, A - /A3 or equivalent,
6. Obligations, including both taxable and tax - exempt, issued or guaranteed by any State,
territory or possession of the United States, political subdivision, public corporation,
authority, agency board, instrumentality or other unit of local government of any State or
territory with a minimum credit quality rating of SP -l/MIG 1, A - /A3 or equivalent,
7. Mortgage- backed securities (MBS), backed by residential, multi - family or commercial
mortgages, that are issued or fully guaranteed as to principal and interest by a U.S.
Federal agency or government sponsored enterprise, including but not limited to pass -
throughs, collateralized mortgage obligations (CMOs) and REMICs,
8. Asset - backed securities ( ABS ) whose underlying collateral consists of loans, leases or
receivables, including but not limited to auto loans /leases, credit card receivables,
student loans, equipment loans /leases, or home - equity loans with a minimum credit
quality rating of A- 1 /P -1, AAA /Aaa or equivalent,
.l
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
9. U.S. dollar denominated commercial paper issued or guaranteed by a domestic or foreign
corporation, company, financial institution, trust or other entity, including both unsecured
debt and asset - backed programs with a minimum credit quality rating of A -1 /P -1 or
equivalent,
10. Shares in open -end and no -load money market mutual funds, provided such funds are
registered under the Investment Company Act of 1940 and operate in accordance with
Rule 2a -7 with a minimum credit quality rating of AAAm /Aaa -mf or equivalent,
11. State, local government or privately- sponsored investment pools that are authorized
pursuant to state law with a minimum credit quality rating of AAAm /Aaa -mf or
equivalent.
The Village 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- I 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.
41
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
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.
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 A 1 or Moody's P 1 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, 2015
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 $ 4,533,356
Petty cash 6,350
Investments 39,793,025
Total deposits and investments $44,332,731
Presented in the statement of net position
Governmental activities
Cash and cash equivalents $ 4,809,660
Restricted cash and cash equivalents 177,431
Investments 8,985,759
Business -type activities
Cash and cash equivalents 659,783
Total statements of net position 14,632,633
Presented in the statement of fiduciary net
position
Pension trust funds
Cash and cash equivalents
950,744
Investments
28,389,691
Agency funds
Cash and cash equivalents
359,663
Total fiduciary funds
29,700,098
Total deposits and investments $44,332,731
43
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 4 — RECEIVABLES
Receivables at September 30, 2015, were as follows:
General
Balance
Fund
Utility franchise fees & taxes
$ 372,462
Conroy Drive assessment
10,553
Other accounts receivable
34,986
Total accounts receivable
$ 418,001
NOTE 5 — CAPITAL ASSETS
Country
Club Total
$ $ 372,462
10,553
18,003 52,989
$ 18,003 $ 436,004
Capital Assets activity for the year ended September 30, 2015, 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
88,182
178,526
266,708
9,267,120
(25,185)
9,241,935
13,827,981
71,500
(5,061)
13,894,420
3,035,292
250,319
(195,351)
3,090,260
3,868,228
879,671
(334,450)
4,413,449
32,142,692
1,380,016
(560,047)
32,962,661
(5,232,005)
(259,032)
24,013
(5,467,024)
(6,968,512)
(902,778)
2,067
(7,869,223)
(1,964,872)
(216,342)
195,351
(1,985,863)
(3,010,376)
(250,394)
331,235
(2,929,535)
(17,175,765)
(1,628,546)
552,666
(18,251,645)
$ 14,966,927
$ (248,530)
$ (7,381) $
$ 14,711,016
..
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 5 — CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions /programs of the primary government as follows:
Governmental activities:
General government
$
97,964
Public safety
401,212
Public works
670,952
Community development
23,242
Leisure services
435,176
Total depreciation expense, governmental
activities
$1,628,546
Beginning
Ending
Business -type activities:
Balance
Additions
Deletions
Transfers
Balance
Capital assets not being depreciated:
Land
$ 1,051,311
$
$
$
$ 1,051,311
Construction in progress
Capital assets being depreciated:
Buildings
1,405,035
1,405,035
Improvements
6,095,930
6,095,930
Machinery and equipment
370,546
(1,454)
369,092
Vehicles
405,466
8,161
413,627
Total at historical cost:
9,328,288
8,161
(1,454)
9,334,995
Less accumulated depreciation for:
Buildings
(1,037,458)
(25,828)
(1,063,286)
Improvements
(2,560,005)
(307,685)
(2,867,690)
Machinery and equipment
(273,625)
(45,820)
1,454
(317,991)
Vehicles
(201,987)
(96,204)
(298,191)
Total accumulated depreciation
(4,073,075)
(475,537)
1,454
(4,547,158)
Business -type activities capital
assets, net
$ 5,255,213
$ (467,376)
$
$
$ 4,787,837
Construction Commitments
The business -type activities have a commitment of $264,000 for design services for the country
club.
Intangible Assets
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, 2015
NOTE 6 — LONG TERM LIABILITIES
Change in Long -Term Liabilities
Long -term liability activity for the year ended September 30, 2015, was as follows:
Business -type activities:
Loans payable
$ 3,096,925 $
$ (271,938)
$ 2,824,987
$ 283,040
Amount
274,471
(126,704)
147,767
147,767
OPEB (see Note 13)
Due
Beginning
Compensated absences
Ending
Within
Balance (1)
Additions
Reductions
Balance
One Year
Governmental activities:
Total
$ 3,481,834 $ 20,161
$ (407,713)
$ 3,094,282
$ 447,389
Claims and settlements
$ 50,000
$
$
$ 50,000
$
OPEB (see Note 13)
1,955,877
254,177
2,210,054
Net pension liability
(see Note 8)
5,271,877
(710,785)
4,561,092
Compensated absences
payable
1,209,366
1,010,009
(952,656)
1,266,719
888,662
Total
$ 8,487,120
$ 1,264,186
$ (1,663,441)
$ 8,087,865
$ 888,662
Business -type activities:
Loans payable
$ 3,096,925 $
$ (271,938)
$ 2,824,987
$ 283,040
Capital leases
274,471
(126,704)
147,767
147,767
OPEB (see Note 13)
85,000 11,753
96,753
Compensated absences
payable
25,438 8,408
(9,071)
24,775
16,582
Total
$ 3,481,834 $ 20,161
$ (407,713)
$ 3,094,282
$ 447,389
(1) As restated, see Note 18
Governmental activities other post - employment benefit obligations, compensated absences and
net pension liabilities are expected to be paid out of the general fund.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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, 2015, the
principal amount outstanding was $2,824,987 and was for the purpose of business -type activities.
Annual debt service requirements to maturity are as follows:
Business -type activities:
Year Ending
Principal
Interest
Total
2016
$ 283,040
$ 115,119
$ 398,159
2017
295,287
102,872
398,159
2018
307,719
90,440
398,159
2019
320,677
77,482
398,159
2020
333,990
64,169
398,159
2021-2024
1,284,274
109,221
1,393,495
$ 2,824,987
$ 559,303
$ 3,384,290
$485,847 Capital Lease
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, 2015, the principal
amount outstanding was $147,766 and the net book value of the equipment was $138,888. The
rate used to impute interest was 4 %.
Annual debt service requirements to maturity are as follows:
Year Ending Principal Interest Total
2016 $ 147,766 $ 1,799 $ 149,565
47
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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. However, under certain
circumstances, a plaintiff can seek to recover damages in excess of statutory limits by
introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do
not apply to claims filed in federal courts.
There have been no significant reductions in insurance coverage in the prior year. No
settlements exceeded insurance coverage for the past three years.
W.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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, 2015, 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. The
plans' fiduciary net position have been determined on the same basis used by the pension plans.
Plan member and state contributions are recognized as revenues in the period that the
contributions are due. Employer contributions to each plan are recognized when due and the
employer has made a formal commitment to provide the contributions. Benefits and refunds are
recognized when due and payable in accordance with the terms of each plan.
Method Used to Value Investments. Investments are reported at fair value and are managed by
third party money managers. 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.
LUG
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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
Fair Value
None
None
None
Village Ordinance /State
Fair Value
None
None
None
Membership of each plan consisted of the following at October 1, 2014:
General Emaloyees' 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.
c
GERF
F &P
Inactive Plan Members or Beneficiaries
currently receiving benefits
22
22
Inactive Plan Members entitled to but
not yet receiving benefits
49
9
Active Plan Members
39
52
Total
110
83
General Emaloyees' 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.
c
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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, 2015
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, 2015, 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, 2015, the annual money - weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was -0.39 percent.
The money - weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
Contributions. General employees may contribute 6 %, 4 %, 2% or 0% of earnings as elected by
the employee, with the retirement benefit received being based on the amount contributed. The
Village is required to contribute the amount necessary to fund the Plan properly according to the
Plan's actuary. Contribution requirements of plan members and the Village are established and
may be amended by the Village Council.
Fire and Police Retirement System
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2015 -05. 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
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
52
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Plan Description. (Continued)
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, 2015, 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, 2015, the annual money - weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 0.660 percent.
The money - weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
Contributions. Firefighter members are required to contribute 2% thru April 1, 2015, contribute
3.50% from April 1, 2015 to March 31, 2016 and 5.00% thereafter of their basic compensation to
the plan. Non - collectively bargained Police Officer are required to contribute 2% their basic
compensation . Collectively bargained Police Officer members are required to contribute; 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 $298,340 during the fiscal year ended September 30, 2015.
53
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Net Pension Liability. The components of net pension liability of the Village on September 30,
2015 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
$ 145556,047 $ 21,852,818
(12,109,145) (17,716,664)
$ 2,446,902 $ 4,136,154
83.19% 81.07%
Actuarial Assumptions - The total pension liability was determined by an actuarial valuation as
of October 1, 2014 updated to September 30, 2015 using the following actuarial assumptions
applied to the September 30, 2015 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
3.00%
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, 2015, are
summarized in the following table:
W
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
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
6.97%
5.6%
4.44%
N/A
Fire and
Police
7.95%
8.00%
2.70%
6.00%
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 4.428.759 2.446.902 $ 793,236
Fire and Police Retirement System
Current
Discount
1% Decrease Rate 1% Increase
6.90% 7.90% 8.90%
Village's net pension liability 7.202.336 4.136.154 1.605.361
55
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
The Village's total pension liability, plan fiduciary net position, net pension liability, pension
related deferred outflows and inflows, and pension expense for the fiscal year ended September
30, 2015, are reported using a measurement date of September 30, 2014.
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 September 30, 2014, 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:
we
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Actuarial Assumptions (Continued)
AcePt
C1 n-,-,
Domestic equity
International equity
Domestic bonds
Real estate
Total
Target
Allocation
General Fire and
Employees Police
45% 50%
15
10
40
30
N/A
10
100%
100%
Long -Term Expected Real
Rate of Return
General Fire and
Employees Police
7.00% 8.25%
7.00%
8.25%
2.50%
3.00%
N/A
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.
57
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement S sy tem
Changes in Net Pension Liability
Using a measurement date of September 30, 2014, the components of the net pension liability
reported by the Village at September 30, 2015, were as follows:
Description
Balances at September 30, 2013
Changes due to:
Service cost
Interest
Employer contributions
Employee contributions
Benefit payments and refunds
Net investment income
Administrative expenses
Total changes
Balances at September 30, 2014
Total
Pension
Liability
(a)
$ 12,728,438
374,926
972,865
(263,674)
1,084,117
Fiduciary
Net
Position
(b)
$ 10,433,153
562,953
142,609
(263,674)
1,072,009
(17,171)
1,496,726
Net
Pension
Liability
(a) -(b)
$ 2,295,285
374,926
972,865
(562,953)
(142,609)
(1,072,009)
17,171
(412,609)
$ 13,812,555 $ 11,929,879 $ 1,882,676
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
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
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement S sy tem (Continued)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2015, the Village recognized pension expense of
$369,221. In addition, the Village reported deferred outflows of resources and deferred inflows
of resources related to the Plan from the following sources:
Description
Net difference between projected and actual
earnings on plan investments
Village plan contributions subsequent
to the measurement date
Total
Deferred Deferred
Outflows Inflows
of Resources of Resources
$ $ 218,877
462,420
$ 462,420 $ 218,877
The deferred outflows of resources totaling $462,420 resulting from Village contributions to the
plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to the plan will be recognized in
pension expense as follows:
Year ended September 30: Amount
2016 $ (54,719)
2017 (54,719)
2018 (54,719)
2019 (54,720)
2020
Thereafter
$ (218,877)
59
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement S sy tem
Changes in Net Pension Liability
Using a measurement date of September 30, 2014, the components of the net pension liability
reported by the Village at September 30, 2015, were as follows::
Description
Balances at September 30, 2013
Changes due to:
Service cost
Interest
Change in excess state money
Change in assumptions
Employer contributions
Employer contributions -state
Employee contributions
Benefit payments and refunds
Net investment income
Administrative expenses
Total changes
Balances at September 30, 2014
Total
Pension
Liability
(a)
$ 17,476,586
699,244
1,419,425
90,535
246,146
(451,574)
2.003.776
Fiduciary
Net
Position
(b)
$ 14,499,921
943,634
321,230
87,010
(451,574)
1,468,473
(66,748)
2.302.025
Net
Pension
Liability
(a) -(b)
$ 2,976,665
699,244
1,419,425
90,535
246,146
(943,634)
(321,230)
(87,010)
(1,468,473)
66,748
(298,249)
$ 19,480,362 $ 16,801,946 $ 2,678,416
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
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
:1
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2015, the Village recognized pension expense of
$653,754. In addition, the Village reported deferred outflows of resources and deferred inflows
of resources related to the Plan from the following sources:
Description
Net difference between projected and actual
earnings on plan investments
Change of assumptions
Village plan contributions subsequent
to the measurement date
Total
Deferred
Deferred
Outflows
Inflows
of Resources
of Resources
210,982
975,733
$ 219,278
$ 1,186,715 $ 219,278
The amounts reported as a change of assumptions resulted from lowering the investment rate of
return form 8% to 7.9%
The deferred outflows of resources totaling $975,733 resulting from Village contributions to the
plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to the plan will be recognized in
pension expense as follows:
Year ended September 30: Amount
2016
$ (19,656)
2017
(19,656)
2018
(19,656)
2019
(19,656)
2020
355164
Thereafter
35,164
$ (8,296)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Summarized information
The Village's total pension liability, plan fiduciary net position, net pension liability, pension
related deferred outflows and inflows, and pension expense for the fiscal year ended September
30, 2015, using a measurement date of September 30, 2014, are as follows:
Total pension liability
Plan fiduciary net position
Net pension liability
Deferred outflows of resources
Deferred inflows of resources
Pension expense
General Fire and
Employees Police
$ 13,812,555
$ 19,480,362
11,929,879
16,801,946
1,882,676
2,678,416
462,420
1,186,715
218,877
219,278
369,221
653,754
Total
$ 33,292,917
28,731,825
4,561,092
1,649,135
438,155
1,022,975
At September 30, 2015, the Village reported payables in the amounts of $23,612 to the General
Employees and $46,688 to the Fire and Police plans for outstanding contributions.
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 9 — ON- BEHALF PAYMENTS
The state makes a contribution to the Fire and Police Officers' Retirement System from the
firefighters' and police officers' Insurance Premium Tax. For the fiscal year ended September
30, 2015, $298,340 was recorded as revenues and expenditures in the On- Behalf Pension
Contribution Special Revenue Fund relating to on- behalf payments received from the state.
NOTE 10 — 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, 2015, is presented below.
STATEMENT OF FIDUCIARY NET POSITION
General
Employees'
pi-minn
Assets
Cash and cash equivalents
$ 169,994
Investments:
Equity mutual funds
9,457,646
Fixed income mutual funds
2,452,812
Accounts receivable /accrued interest
and dividends
28,693
Total assets
12,109,145
Net position
Held in trust for pension benefits and
other purposes
$12,109,145
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 10 — PENSION PLAN FINANCIAL INFORMATION (Continued)
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
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. If an employee terminates before becoming fully vested, forfeited amounts
will be used to reduce future Village contributions. No loans are permitted by the plan. The
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.
:E
General
Employees'
Pension
Additions
Contributions
Employer
$ 464,189
Plan members
125,738
Total contributions
589,927
Investment earnings
Dividends and interest
343,450
Net (decrease) in the fair value
of investments
(410,026)
Less investment expense
(29,540)
Total investment earnings
(96,116)
Total additions
493,811
Deductions
Administration
20,655
Benefits
267,777
Refund of contributions
26,113
Total deductions
314,545
Change in net position
179,266
Net position - beginning
11,929,879
Net position - ending
$ 12,109,145
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. If an employee terminates before becoming fully vested, forfeited amounts
will be used to reduce future Village contributions. No loans are permitted by the plan. The
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.
:E
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 11 — DEFINED CONTRIBUTION PLAN (Continued)
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, 2015, is listed below:
Directors
Employee contributions $ 35,755
Village pension expense 87,106
Forfeitures
Payable as of fiscal year end 4,163
General Municipal
Employees Employees
$ 36,186
128,004
2,847
6,431
NOTE 12 — DEFERRED COMPENSATION PLAN ASSETS
$ 48,663
137,067
7,282
6,802
Total
$ 120,604
352,177
10,129
17,396
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.
:•
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 12 — DEFERRED COMPENSATION PLAN ASSETS (Continued)
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. 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.
Me
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
Annual OPEB Cost and Net OPEB Obligation (Continued)
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:
10/01/2014
Employer
Pay -as- you -go
Plan members
N/A
Normal cost
$ 214,716
Interest on normal cost
8,589
Amortization
137,039
Interest on amortization
5,481
Annual required contribution (ARC)
365,825
Interest on net unfunded OPEB obligation
81,635
Adjustment to ARC
(118,024)
Annual OPEB cost
329,436
Contributions made
(63,506)
Increase in net OPEB obligation
265,930
Net OPEB obligation October 1, 2014
2,040,877
Net OPEB obligation September 30, 2015
2.306.807
Trend Information
Three -Year Trend Information
Percentage of
Fiscal Annual Annual Net
Year OPEB OPEB Cost OPEB
End Cost Contributed Obligation
09/30/13 $520,693 21.1% $1,617,152
09/30/14 $547,229 22.6% $2,040,877
09/30/15 $329,436 19.3% $2,306,807
Funded Status
The funded status of the plan as of most recent actuarial valuation date was as follows:
Actuarial valuation date
10/01/2014
Actuarial accrued liability
$2,464,468
Actuarial value of plan assets
$
Unfunded actuarial accrued liability (UAAL)
$2,464,468
Funded ratio
0.0%
Covered payroll
$8,675,270
UAAL as a percentage of covered payroll
28.4%
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
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
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
10/01/2014
Projected Unit Credit
Level dollar, 30 Years, open
30 years
Unfunded
4%
3%
9% for 2016 decreasing to 5% in 2024
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 $162,205 to
Seacoast during the fiscal year for water and sewer service.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 15 — TRANSFERS
Interfund transfers during the year ended September 30, 2015, are as follows:
Transfer in:
Capital Projects Fund
Transfer Out:
General Fund
$ 2,091,246
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.
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, 2016 is $351,700.
Contingencies
The Village is involved in various litigations and claims arising in the course of operations. It is
the opinion of legal counsel that the likelihood of unfavorable outcome and the amounts of
potential losses cannot be reasonably determined for all claims at this time.
NOTE 17 — SUBSEQUENT EVENTS
Subsequent to September 30, 2015, the Village approved purchasing three police vehicles at a
cost of $143,800, an ambulance at a cost of $249,500 and the lease /purchase of eighty -two golf
carts for $356,000 including a trade in allowance of $145,000 for the existing golf carts.
Me
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 18 — ACCOUNTING CHANGE
The Village implemented the following Governmental Accounting Standards Board Statements
during the fiscal year ended September 30, 2015.
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. The implementation of this statement resulted in a restatement
of beginning net positon, as well as related deferred outflows of resources and deferred inflows
of resources due to recording the Village's net pension liability on the statement of net position.
In November 2013, the GASB issued Statement No. 71, Pension Transition Contributions Made
Subsequent to the Measurement Date — an amendment to GASB Statement No. 68. This
Statement amends paragraph 137 of GASB 68 to require that, at transition, a government
recognize the beginning deferred outflow of resources for its pension contributions, if any, made
subsequent to the measurement date of the beginning net pension liability.
The Village sponsors the Village of North Palm Beach Fire and Police Retirement Plan, covering
firefighters and police officers, and the Village of North Palm Beach General Employees
Retirement Plan, single employer defined benefit pension plans. These standards require
employers participating in single employer defined benefit pension plans to report their net
pension liabilities and related pension amounts. The cumulative effect of applying GASB 68 has
been reported as a restatement of the beginning net position of the governmental activities on the
entity -wide financial statements. A reconciliation of the prior period ending net position to the
current period beginning net positions is as follows.
Governmental
Activities
Balance at September 30, 2014, as reported $ 26,461,778
Adjustment for adoption of GASB 68 — Fire and
Police Retirement Plan (2,259,770)
Adjustment for adoption of GASB 68 — General
Employees Retirement Plan (2,015,249)
Balance at September 30, 2014, as restated $ 22,186,759
70
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2015
NOTE 19 — 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 February 2015, the GASB issued Statement No. 72, Fair Value Measurement and Application.
This Statement provides guidance for determining a fair value measurement for financial
reporting purposes and also provides guidance for applying fair value of certain investments and
disclosures related to all fair value measurements. This Statement is effective for the fiscal year
ending September 30, 2016.
In June 2015, the GASB issued Statement No. 73, Accounting and Financial Reporting for
Pensions and Related Assets That Are Not Within the Scope of GASB Statement 68, and
Amendments to Certain Provisions of GASB Statements 67 and 68. This Statement improves the
usefulness of information about pensions included in the general purpose external financial
reports of state and local governments for making decisions and assessing accountability. Certain
sections of this Statement are effective for the fiscal year ending September 30, 2016 and the
remaining sections are effective for the fiscal year ending September 30, 2017.
In June 2015, the GASB issued Statement No. 74, Financial Reporting for Postemployment
Benefit Plans Other Than Pension Plans. This Statement improves the usefulness of information
about postemployment benefits other than pensions included in the general purpose external
financial reports of state and local government OPEB plans for making decisions and assessing
accountability. This Statement is effective for the fiscal year ending September 30, 2017.
In June 2015 the GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. This Statement improves accounting and
financial reporting by state and local governments for postemployment benefits other than
pensions. It also improves information provided by state and local governmental employers
about financial support for OPEB that is provided by other entities. This Statement is effective
for the fiscal year ending September 30, 2018.
Management is currently evaluating the impact of the adoption of these statements on the
Village's financial statements.
71
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD &A
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2015
Schedule of Funding Progress
Other Postemployment Benefits (OPEB)
(1) Projected unit credit
The schedule of funding progress presented above presents 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.
72
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)
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%
10/01/14
$
$ 2,464,468
$ 2,464,468
0.0%
$ 8,675,270
28.4%
(1) Projected unit credit
The schedule of funding progress presented above presents 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.
72
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, 2015
General Employees Retirement Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Last Two Fiscal Years
2014 2015
Total pension liability
Service cost
$ 374,926
$ 317,676
Interest
972,865
1,048,746
Differences between Expected and
Actual Experience
(329,040)
Benefit payments, including
refunds of employee contributions
(263,674)
(293,890)
Net change in total pension liability
1,084,117
743,492
Total pension liability - beginning
12,728,438
13,812,555
Total pension liability - ending (a)
$ 13,812,555
$14,556,047
Plan fiduciary net position
Contributions - employer
$ 562,953
$ 464,189
Contributions - Eemployees
142,609
125,738
Net investment income
1,072,009
(96,116)
Benefit payments, including
refunds of employee contributions
(263,674)
(293,890)
Administrative expenses
(17,171)
(20,655)
Net change in plan fiduciary net position
1,496,726
179,266
Plan fiduciary net position - beginning
10,433,153
11,929,879
Plan fiduciary net position - ending (b)
$ 11,929,879
$12,109,145
Net pension liability (a) - (b)
$ 1,882,676
$ 2,446,902
Plan fiduciary net position as a percentage
of the total pension liability 86.37% 83.19%
Covered employee payroll $ 2,701,771 $ 2,424,320
Net pension liability as a percentage of
covered payroll 69.68% 100.93%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
73
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2015
Fire and Police Retirement Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Last Two Fiscal Years
2014 2015
Total pension liability
Service cost
$ 699,244
$
810,654
Interest
1,419,425
1,555,518
Changes in excess state money
90,535
67,645
Changes of benefit terms
1,682
Differences between Expected and
Actual Experience
483,189
Changes of assumptions
246,146
Contributions - Buy Back
65,446
Benefit payments, including
refunds of employee contributions
(451,574)
(611,678)
Net change in total pension liability
2,003,776
2,372,456
Total pension liability - beginning
17,476,586
19,480,362
Total pension liability - ending (a)
$ 19,480,362
$ 21,852,818
Plan fiduciary net position
Contributions - employer
$ 943,634
$
975,733
Contributions - State
321,230
298,340
Contributions - Eemployees
87,010
151,450
Contributions - Buy Back
65,446
Net investment income
1,468,473
111,884
Benefit payments, including
refunds of employee contributions
(451,574)
(611,678)
Administrative expenses
(66,748)
(76,457)
Net change in plan fiduciary net position
2,302,025
914,718
Plan fiduciary net position - beginning
14,499,921
16,801,946
Plan fiduciary net position - ending (b)
$ 16,801,946
$
17,716,664
Net pension liability (a) - (b)
$ 2,678,416
$
4,136,154
Plan fiduciary net position as a percentage
of the total pension liability
86.25%
81.07%
Covered employee payroll
$ 4,312,746
$
4,518,020
Net pension liability as a percentage of
covered payroll
62.10%
91.55%
Changes of Assumptions
For the 2014 fiscal year the investment rate of return was lowered from 8.0% to 7.9%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
74
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2015
Last Two Fiscal Years
Schedule of Contributions
Fiscal Year
Acturially
Ending
Determined
September 30
Contribution
General Employees Retirement Fund
2,424,320
2014 $
562,509
2015 $
464,189
Fire and Police Retirement Fund
$
2014 $
1,173,930
2015 $
1,205,408
Schedule of Investment Returns
Contribution Actual Contribution
Actual Deficiency Covered as a Percentage of
Conribution (Excess) Payroll Covered Paryoll
$ 562,953
$
(444) $
2,838,421
$ 464,189
$
$
2,424,320
$ 1,174,329
$
(399) $
4,312,746
$ 1,206,428
$
(1,020) $
4,518,020
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
fIL.7
19.83%
19.15%
27.23%
26.70%
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%
2015
-0.39% 0.66%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
fIL.7
19.83%
19.15%
27.23%
26.70%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Schedule of Contributions
September 30, 2015
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 Police and Fire
Retirement Fund 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
76
Aggregate
N/A
N/A
Five year smoothed market
4.00%
6.00%
3.00%
7.90%
- 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, 2015
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
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 14,825,948
$ 14,825,948
$ 15,167,694 $
341,746
1,054,600
1,054,600
947,158
(107,442)
1,376,282
1,376,282
1,437,218
60,936
2,360,691
2,360,691
2,231,673
(129,018)
87,835
87,835
128,235
40,400
40,250
40,250
108,794
68,544
15,500
15,500
122,107
106,607
19,761,106
19,761,106
20,142,879
381,773
2,905,239
2,905,239
2,904,553
686
8,351,629
8,359,189
8,667,737
(308,548)
4,293,066
4,349,366
4,255,636
93,730
1,192,772
1,336,285
1,270,399
65,886
2,804,654
2,666,551
2,514,495
152,056
10,000
15,541
16,640
(1,099)
19,557,360
19,632,171
19,629,460
2,711
203,746
128,935
513,419
384,484
102,000
1,962,311
(1,962,311)
(305,746)
(2,091,246)
(2,091,246)
(203,746)
(128,935)
(2,091,246)
(1,962,311)
$
$
(1,577,827)
$ (1,577,827)
WA
12,987,863
$ 11,410,036
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Budgetary
Required Supplementary Information (RSI)
General Fund
September 30, 2015
Note 1 - Basis of Accounting
Generally accepted accounting principles (GAAP) serve as the budgetary basis of accounting.
VE:j
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, 2015
286,333 286,333 287,785 (1,452) -0.51
30,700 30,700 19,609 11,091 36.13
317,033 317,033 307,394 9,639 3.04
679,248 679,248 697,064 (17,816) -2.62
52,400 52,400 43,129 9,271 17.69
731,648 731,648 740,193 (8,545) -1.17
140,000 140,000 138,923 1,077
0.77
289,892 289,892 293,213 (3,321) -1.15
32,160 32,160 55,946 (23,786) -73.96
322,052 322,052 349,159 (27,107) -8.42
302,600 302,600 260,282 42,318 13.98
128,200 128,200 160,644 (32,444) -25.31
430,800 430,800 420,926 9,874 2.29
255,136 255,136 223,123 32,013 12.55
86,307 86,307 100,454 (14,147) -16.39
341,443 341,443 323,577 17,866 5.23
4,357,043 4,357,043 4,606,275 (249,232) -5.72
716,825 720,025 719,761 264 0.04
5,073,868 5,077,068 5,326,036 (248,968) -4.90
2,958,001 2,958,001 3,044,254 (86,253) -2.92
213,210 213,210 183,868 29,342 13.76
3,171,211 3,171,211 3,228,122 (56,911) -1.79
207,565 207,565 204,555 3,010 1.45
45,640 83,346 99,542 (16,196) -19.43
253,205 290,911 304,097 (13,186) -4.53
79
(Continued)
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 50,468
$ 50,468
$ 50,464
$ 4
0.01
79,615
79,615
70,470
9,145
11.49
130,083
130,083
120,934
9,149
7.03
286,333 286,333 287,785 (1,452) -0.51
30,700 30,700 19,609 11,091 36.13
317,033 317,033 307,394 9,639 3.04
679,248 679,248 697,064 (17,816) -2.62
52,400 52,400 43,129 9,271 17.69
731,648 731,648 740,193 (8,545) -1.17
140,000 140,000 138,923 1,077
0.77
289,892 289,892 293,213 (3,321) -1.15
32,160 32,160 55,946 (23,786) -73.96
322,052 322,052 349,159 (27,107) -8.42
302,600 302,600 260,282 42,318 13.98
128,200 128,200 160,644 (32,444) -25.31
430,800 430,800 420,926 9,874 2.29
255,136 255,136 223,123 32,013 12.55
86,307 86,307 100,454 (14,147) -16.39
341,443 341,443 323,577 17,866 5.23
4,357,043 4,357,043 4,606,275 (249,232) -5.72
716,825 720,025 719,761 264 0.04
5,073,868 5,077,068 5,326,036 (248,968) -4.90
2,958,001 2,958,001 3,044,254 (86,253) -2.92
213,210 213,210 183,868 29,342 13.76
3,171,211 3,171,211 3,228,122 (56,911) -1.79
207,565 207,565 204,555 3,010 1.45
45,640 83,346 99,542 (16,196) -19.43
253,205 290,911 304,097 (13,186) -4.53
79
(Continued)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2015
(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
296,578 296,578 307,850 (11,272) -3.80
346,400 349,050 303,668 45,382 13.00
642,978 645,628 611,518 34,110 5.28
511,443 511,443 440,646 70,797 13.84
960,865 976,809 880,575 96,234 9.85
1,472,3 08 1,488,252 1,321,221 167,031 11.22
212,827 212,827 198,070 14,757 6.93
216,100 216,100 180,545 35,555 16.45
428,927 428,927 378,615 50,312 11.73
257,184 257,184 263,430 (6,246) -2.43
107,850 251,363 126,709 124,654 49.59
365,034 508,547 390,139 118,408 23.28
583,008 583,008 664,606 (81,598) -14.00
92,508 92,508 86,569 5,939 6.42
675,516 675,516 751,175 (75,659) -11.20
132,952 132,952 111,006 21,946 16.51
19,270 19,270 18,079 1,191 6.18
152,222 152,222 129,085 23,137 15.20
638,919 638,919 640,698 (1,779) -0.28
376,392 380,289 334,321 45,968 12.09
1,015,311 1,019,208 975,019 44,189 4.34
622,336 622,336 614,303 8,033 1.29
168,625 168,625 151,618 17,007 10.09
790,961 790,961 765,921 25,040 3.17
(Continued)
:1
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 1,319,148
$ 1,319,148
$ 1,419,726
$ (100,578)
-7.62
176,500
176,500
220,459
(43,959)
-24.91
1,495,648
1,495,648
1,640,185
(144,537)
-9.66
296,578 296,578 307,850 (11,272) -3.80
346,400 349,050 303,668 45,382 13.00
642,978 645,628 611,518 34,110 5.28
511,443 511,443 440,646 70,797 13.84
960,865 976,809 880,575 96,234 9.85
1,472,3 08 1,488,252 1,321,221 167,031 11.22
212,827 212,827 198,070 14,757 6.93
216,100 216,100 180,545 35,555 16.45
428,927 428,927 378,615 50,312 11.73
257,184 257,184 263,430 (6,246) -2.43
107,850 251,363 126,709 124,654 49.59
365,034 508,547 390,139 118,408 23.28
583,008 583,008 664,606 (81,598) -14.00
92,508 92,508 86,569 5,939 6.42
675,516 675,516 751,175 (75,659) -11.20
132,952 132,952 111,006 21,946 16.51
19,270 19,270 18,079 1,191 6.18
152,222 152,222 129,085 23,137 15.20
638,919 638,919 640,698 (1,779) -0.28
376,392 380,289 334,321 45,968 12.09
1,015,311 1,019,208 975,019 44,189 4.34
622,336 622,336 614,303 8,033 1.29
168,625 168,625 151,618 17,007 10.09
790,961 790,961 765,921 25,040 3.17
(Continued)
:1
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2015
(Continued)
Tennis
Personnel services
Operating expenses
Total Tennis
Pool
Personnel services
Operating expenses
Total Pool
Special Events
Operating expenses
Total Special Events
Non - Departmental
Operating expenses
Capital Outlay
Police Forfeiture Trust Fund
Facility Services
Planning and Engineering
Total Capital Outlay
Total expenditures
96,057 96,057 98,122 (2,065) -2.15
240,267 150,267 132,168 18,099 12.04
336,324 246,324 230,290 16,034 6.51
100,500 100,500 88,300 12,200 12.14
100,500 100,500 88,300 12,200 12.14
598,730 603,090 617,026 (13,936) -2.31
598,730 603,090 617,026 (13,936) -2.31
16,640 (16,640)
10,000 10,000 10,000
5,541 5,541 100.00
10,000 15,541 16,640 (1,099) (7.07)
$ 19,557,360 $ 19,632,171 $ 19,629,460 $ 2,711 0.01%
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 140,214
$ 140,214
$ 136,488
$ 3,726
2.66
421,344
369,344
318,477
50,867
13.77
561,558
509,558
454,965
54,593
10.71
96,057 96,057 98,122 (2,065) -2.15
240,267 150,267 132,168 18,099 12.04
336,324 246,324 230,290 16,034 6.51
100,500 100,500 88,300 12,200 12.14
100,500 100,500 88,300 12,200 12.14
598,730 603,090 617,026 (13,936) -2.31
598,730 603,090 617,026 (13,936) -2.31
16,640 (16,640)
10,000 10,000 10,000
5,541 5,541 100.00
10,000 15,541 16,640 (1,099) (7.07)
$ 19,557,360 $ 19,632,171 $ 19,629,460 $ 2,711 0.01%
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Public Safety Fund
Northlake Boulevard Fund
Recreation Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2015
Special Revenue Funds
Public Northlake Total Nonmajor
Safety Boulevard Governmental
Fund Fund Recreation Funds
Assets
Cash and cash equivalents $ 1,520 $ 1,986 $ 365,178 $ 368,684
Total assets $ 1,520 $ 1,986 $ 365,178 $ 368,684
Liabilities
Accounts payable $ $ $ 6,130 $ 6,130
Due to other funds 44,028 44,028
Total liabilities 50,158 50,158
Fund balances
Assigned 1,520 1,986 315,020 318,526
Total fund balances 1,520 1,986 315,020 318,526
Total liabilities and fund balances $ 1,520 $ 1,986 $ 365,178 $ 368,684
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, 2015
Revenues
Intergovernmental
Total revenues
Expenditures
Capital outlay
Total expenditures
Net changes in fund balances
Special Revenue Funds
Public Northlake Total Nonmaj or
Safety Boulevard Governmental
Fund Fund Recreation Funds
$ 22,688 $
22,688
$ $ 22,688
22,688
6,626 29,314
6,626 29,314
(6,626) (6,626)
Fund balances - Beginning of year
1,520
1,986
321,646
325,152
Fund balances - End of year $
1,520 $
1,986
$ 315,020 $
318,526
:
FIDUCIARY FUNDS
Pension Trust Funds
General Employees Pension Trust Fund
Fire and Police Officers Pension Trust Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Net Position - Pension Trust Funds
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
Accounts receivable, broker - dealers
Prepaids
Total assets
LIABILITIES
Accounts payable
Total liabilities
Net Position
Held in trust for pension benefits
and other purposes
9/30/2015
Fire and
Total
General Police
Employee
Employees Officers
Retirement
Pension Pension
Funds
$ 169,994 $ 780,750 $
950,744
9,033,530
9,033,530
1,148,713
1,148,713
980,088
980,088
208,536
208,536
3,363,819
3,363,819
9,457,646 26,880
9,484,526
2,452,812
2,452,812
1,717,667
1,717,667
5,079 42,893
47,972
23,614 365,948
389,562
85,015
85,015
1,526
1,526
12,109,145 17,755,365
29,864,510
38,701 38,701
38,701 38,701
$ 12,109,145 $ 17,716,664 $ 29,825,809
z
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
For the Year Ended September 30, 2015
Additions
Contributions
Employer
Plan members
State on- behalf payments
Total contributions
Investment earnings
Dividends and interest
Net (decrease) 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
$ 464,189
$ 975,733
$ 1,439,922
125,738
216,896
342,634
298,340
298,340
589,927
1,490,969
2,080,896
343,450
403,626
747,076
(410,026)
(162,193)
(572,219)
(66,576)
241,433
174,857
29,540
129,147
158,687
(96,116)
112,286
16,170
493,811
1,603,255
2,097,066
20,655
76,857
97,512
267,777
605,809
873,586
26,113
5,871
31,984
314,545
688,537
1,003,082
179,266
914,718
1,093,984
11,929,879
16,801,946
28,731,825
$ 12,109,145
$ 17,716,664
$ 29,825,809
.R
AGENCY FUNDS
Manatee Protection Agency
Northlake Boulevard Task Force
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Agency Net Position
September 30, 2015
Assets
Cash and cash equivalents
Liabilities
Due to others
Manatee
Northlake
Total
Protection
Boulevard
Agency
Agency
Task Force
Funds
$ 296,604 $ 63,059 $ 359,663
$ 296,604 $ 63,059 $ 359,663
:•
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Schedule of Changes in Agency Net Position
For the Year Ended September 30, 2015
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, 2014 Additions Deductions September 30, 2015
$ 293,632 $ 2,972 $ $ 296,604
$ 293,632 $ 2,972 $ $ 296,604
$ 62,428 $ 631 $ $ 63,059
$ 62,428 $ 631 $ $ 63,059
$ 356,060 $ 3,603 $ $ 359,663
$ 356,060 $ 3,603 $ $ 359,663
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, 2015
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 3,768,889
Less: capital outlay costs capitalized (8,161)
Less: debt service (533,821)
Add: depreciation expense 480,574
Total operating expenses $ 3,707,481
(1) $264,000 was budgeted for design services relating to the country club, that were carried forward to the 2016 budget.
..
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
Revenue
Greens fee /cart rentals /membership fees
$ 2,419,733
$ 2,419,733
$ 2,332,066
$ (87,667)
-3.62
Golf shop revenues
383,350
383,350
407,269
23,919
6.24
Driving range revenues
304,548
304,548
313,882
9,334
3.06
Restaurant revenues
800,000
800,000
726,229
(73,771)
-9.22
Interest revenues
8,410
8,410
10,393
1,983
23.58
Miscellaneous
9,406
9,406
Appropriated net position (1)
264,000
(264,000)
Total revenues
3,916,041
4,180,041
3,799,245
(380,796)
-9.11
Golf Maintenance
Operating expenses
1,146,385
1,146,385
1,178,337
(31,952)
-2.79
Total Golf Maintenance
1,146,385
1,146,385
1,178,337
(31,952)
-2.79
Golf Pro Shop and Range
Personnel services
618,540
618,540
560,596
57,944
9.37
Operating expenses
374,329
374,329
340,915
33,414
8.93
Total Golf Pro Shop and Range
992,869
992,869
901,511
91,358
9.20
Food and Beverage
Personnel services
513,437
513,437
463,058
50,379
9.81
Operating expenses
432,345
432,345
424,475
7,870
1.82
Total Food and Beverage
945,782
945,782
887,533
58,249
6.16
Administration
Personnel services
62,121
62,121
66,849
(4,728)
-7.61
Operating expenses (1)
24,603
288,603
24,918
263,685
91.37
Total Administration
86,724
350,724
91,767
258,957
73.83
Clubhouse and Grounds
Operating expenses
106,607
106,607
93,330
13,277
12.45
Capital outlay
8,161
(8,161)
Total Clubhouse and Grounds
106,607
106,607
101,491
5,116
4.80
Insurance and General Liability
Operating expenses
55,809
55,809
63,659
(7,850)
(14.07)
Reserves
Operating
10,000
10,000
10,770
(770)
(7.70)
Contingency
33,714
33,714
33,714
100.00
Total Reserves
43,714
43,714
10,770
32,944
75.36
Debt service
Debt service
538,151
538,151
533,821
4,330
0.80
Total expenses on the budgetary basis
3,916,041
4,180,041
3,768,889
411,152
9.84
Revenues over expenses
$
$
$ 30,356
$ 30,356
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 3,768,889
Less: capital outlay costs capitalized (8,161)
Less: debt service (533,821)
Add: depreciation expense 480,574
Total operating expenses $ 3,707,481
(1) $264,000 was budgeted for design services relating to the country club, that were carried forward to the 2016 budget.
..
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 89
Changes in Net Position 90
Fund Balances, Governmental Funds 92
Changes in Fund Balances, Governmental Fund 93
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 95
Property Tax Rates - Direct and Overlapping Governments 96
Principal Property Taxpayers 97
Property Tax Levies and Collections 98
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 99
Direct and Overlapping Governmental Activities Debt 100
Pledged- Revenue Coverage 101
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 102
Principal Employers 103
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 104
Operating Indicators by Function /Program 105
Capital Asset Statistics by Function /Program 106
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
THIS PAGE INTENTIONALLY LEFT BLANK
VILLAGE OF NORTH PALM BEACH
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCR UAL BASIS OFACCOUNTING) Unaudited
(1) The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
89
2011
2012
Fiscal Year
2014
2015(1)
Governmental Activities:
2006
2007
2008
2009
2010
Governmental Activities:
$ 17,237,355
$ 16,109,707
$ 15,431,966
$ 14,966,927
$ 14,711,016
Net investment in capital assets
$ 8,118,773
$ 10,543,788
$ 12,845,093
$ 16,643,241
$ 18,184,508
Restricted
154,073
113,269
979,182
251,088
390,081
Unrestricted
7,143,452
9,281,170
9,836,912
11,016,626
10,568,594
Total governmental activities net position
15,416,298
19,938,227
23,661,187
27,910,955
29,143,183
Business -Type Activities:
2,200,927
2,082,668
1,998,974
1,907,746
1,833,975
Net investment in capital assets
1,999,123
2,195,630
2,492,524
2,364,814
2,295,125
Unrestricted
415,865
151,005
202,802
434,212
403,261
Total business -type activities net position
2,414,988
2,346,635
2,695,326
2,799,026
2,698,386
Primary government:
19,438,282
18,192,375
17,430,940
16,874,673
16,544,991
Net investment in capital assets
10,117,896
12,739,418
15,337,617
19,008,055
20,479,633
Restricted
154,073
113,269
979,182
251,088
390,081
Unrestricted
7,559,317
9,432,175
10,039,714
11,450,838
10,971,855
Total primary government net position
$ 17,831,286
$ 22,284,862
$ 26,356,513
$ 30,709,981
$ 31,841,569
(1) The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
89
2011
2012
2013
2014
2015(1)
Governmental Activities:
Net investment in capital assets
$ 17,237,355
$ 16,109,707
$ 15,431,966
$ 14,966,927
$ 14,711,016
Restricted
548,489
658,194
317,190
180,755
177,431
Unrestricted
11,775,621
11,846,141
11,973,715
11,314,096
6,168,366
Total governmental activities net position
29,561,465
28,614,042
27,722,871
26,461,778
21,056,813
Business -Type Activities:
Net investment in capital assets
2,200,927
2,082,668
1,998,974
1,907,746
1,833,975
Unrestricted
385,623
557,954
668,434
514,167
544,523
Total business -type activities net position
2,586,550
2,640,622
2,667,408
2,421,913
2,378,498
Primary government:
Net investment in capital assets
19,438,282
18,192,375
17,430,940
16,874,673
16,544,991
Restricted
548,489
658,194
317,190
180,755
177,431
Unrestricted
12,161,244
12,404,095
12,642,149
11,828,263
6,712,889
Total primary government net position
$ 32,148,015
$ 31,254,664
$ 30,390,279
$ 28,883,691
$ 23,435,311
(1) The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
89
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.
90
Fiscal Year
2006
2007
2008
2009
2010
Expenses
Governmental activities:
General government
$
1,784,528
$
2,698,187
$
1,839,228
$ 2,239,511
$ 2,679,192
Public safety
7,036,117
6,671,490
7,154,578
7,095,043
7,304,233
Public works
4,131,500
3,733,815
3,996,711
4,083,441
4,594,738
Community development and planning
657,112
737,165
860,448
826,149
806,536
Leisure services
2,562,627
2,781,658
3,244,045
3,174,623
2,830,292
Other government
2,049
Interest on long -term debt
241,995
204,666
120,549
26,702
4,384
Total governmental activities expenses
16,415,928
16,826,981
17,215,559
17,445,469
18,219,375
Business -type activities:
Country club
2,124,927
3,570,683
3,268,562
3,308,535
3,398,206
Total business -type activities
2,124,927
3,570,683
3,268,562
3,308,535
3,398,206
Total primary government expenses
$
18,540,855
$ 20,397,664
$ 20,484,121
$ 20,754,004
$ 21,617,581
Program Revenues
Governmental activities:
Charges for services:
General government
$
158,160
$
122,455
$
123,334
$ 122,569
$ 126,968
Public safety
388,671
345,731
383,325
378,591
465,263
Public works
140,923
217,975
288,994
394,082
411,722
Community development and planning
1,175,252
938,188
888,015
699,130
734,718
Leisure services
528,983
496,679
595,558
912,862
1,063,748
Other government
Operating grants and contributions
998,573
170,389
88,224
105,080
96,670
Capital grants and contributions
462,394
1,454,526
1,602,465
2,017,158
75,845
Total governmental activities program revenues
3,852,956
3,745,943
3,969,915
4,629,472
2,974,934
Business -type activities:
Charges for services:
Country club
2,167,089
3,463,524
3,616,509
3,404,859
3,227,580
Operating grants and contributions
68,883
13,609
Capital grants and contributions
Total business -type activities program revenues
2,235,972
3,463,524
3,630,118
3,404,859
3,227,580
Total primary government program revenues
$
6,088,928
$
7,209,467
$
7,600,033
$ 8,034,331
$ 6,202,514
Net (Expense)/Revenue
Governmental activities
$
(12,562,972)
$
(13,081,041)
$ (13,245,644)
$ (12,815,997)
$ (15,244,441)
Business -type activities
111,045
(107,159)
361,556
96,324
(170,626)
Total primary government net expense
$
(12,451,927)
$
(13,188,200)
$
(12,884,088)
$ (12,719,673)
$ (15,415,067)
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes
$
10,881,501
$
12,076,184
$
11,915,355
$ 11,917,359
$ 11,053,128
Local option gas taxes
307,043
292,332
278,649
267,557
266,077
Utility service taxes
2,001,164
2,001,443
2,018,071
2,239,002
2,261,375
Franchise taxes
1,150,974
1,207,552
1,212,562
1,256,831
1,204,328
Sales and use taxes
1,415,917
1,339,893
1,227,341
1,116,107
1,114,945
Unrestricted grants and contributions
Investment earnings
477,420
650,022
194,652
(1,346)
280,217
Miscellaneous
53,264
8,836
55,719
263,459
213,425
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
16,323,728
17,596,875
16,968,604
17,065,765
16,393,495
Business -type activities:
Investment income
112,841
43,917
36,431
7,376
14,686
Miscellaneous
55,300
Transfers
(36,445)
(5,111)
(49,296)
Total business -type activities
76,396
38,806
(12,865)
7,376
69,986
Total primary government
$
16,400,124
$
17,635,681
$
16,955,739
$ 17,073,141
$ 16,463,481
Change in net position
Governmental activities
$
3,760,756
$
4,515,834
$
3,722,960
$ 4,249,768
$ 1,149,054
Business -type activities
187,441
(68,353)
348,691
103,700
(100,640)
Total primary government
$
3,948,197
$
4,447,481
$
4,071,651
$ 4,353,468
$ 1,048,414
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
90
2011 2012 2013 2014 2015
$ 2,403,681
$
2,520,815
$
2,489,488
$ 2,696,298
$ 3,028,716
7,232,748
7,892,561
8,282,062
9,259,442
9,013,101
4,733,913
4,652,620
4,482,973
4,485,246
4,963,704
811,177
884,773
966,245
1,046,299
1,308,924
2,749,065
2,873,496
2,974,290
3,114,213
2,973,687
17,930,584
19,195,058
18,824,265
20,601,498
21,288,132
3,691,528
3,536,139
3,629,120
3,902,131
3,842,660
3,691,528
3,536,139
3,629,120
3,902,131
3,842,660
$ 21,622,112
$
22,360,404
$
22,824,178
$ 24,503,629
$ 25,130,792
$ 130,886
$
135,372
$
107,976
$ 110,694
$ 131,445
420,653
440,568
522,121
592,644
537,064
400,662
386,974
403,447
402,814
514,354
861,394
816,673
993,059
1,621,471
1,163,875
1,043,459
1,018,883
1,087,182
1,096,021
1,006,3 82
126,568
149,573
91,901
90,520
82,227
5,169
5,686
233,949
16,098
26,548
2,988,791
2,953,729
3,439,635
3,930,262
3,461,895
3,571,199
3,582,760
3,577,446
3,645,706
3,788,852
3,571,199
3,577,446
3,582,760
3,645,706
3,788,852
$ 6,559,990
$
6,536,489
$
7,017,081
$ 7,575,968
$ 7,250,747
$ (14,941,793)
$
(15,870,536)
$
(15,755,423)
$ (16,671,236)
$ (17,826,237)
(120,329)
46,621
(51,674)
(256,425)
(53,808)
$ (15,062,122)
$ (15,823,915)
$ (15,807,097)
$ (16,927,661)
$ (17,880,045)
$ 10,441,869
$
10,011,748
$
9,981,391
$ 10,154,695
$ 11,364,888
259,794
263,369
261,852
266,147
282,549
2,198,148
2,164,920
2,197,760
2,277,366
2,267,118
1,191,155
1,178,5 98
1,160,780
1,232,669
1,253,139
1,140,744
1,138,097
1,187,221
1,260,617
1,332,209
97,743
90,968
37,029
16,653
108,794
30,622
75,413
38,219
146,360
57,137
55,636
30,457
15,360,075
14,923,113
14,864,252
15,410,143
16,696,291
8,493
7,451
8,555
10,930
10,393
69,905
8,493
7,451
78,460
10,930
10,393
$ 15,368,568
$
14,930,564
$
14,942,712
$ 15,421,073
$ 16,706,684
$ 418,282
$
(947,423)
$
(891,171)
$ (1,261,093)
$ (1,129,946)
(111,836)
54,072
26,786
(245,495)
(43,415)
$ 306,446 $ (893,351) $ (864,385) $ (1,506,588) $ (1,173,361)
91
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.
92
2006
2007
2008
2009
2010
Pre GASB 54
General Fund
Reserved
$
308,836
$
945,891
$
775,339
$
563,115
$
563,115
Unreserved
7,022,606
8,179,659
8,265,513
10,058,216
Total general fund
Post GASB 54
General Fund
Nonspendable
Restricted
167,108
Committed
338,457
Assigned
Unassigned
104,245
10,443,099
Total general fund
$
7,331,442
$
9,125,550
$
9,040,852
$ 10,621,331
$
11,052,909
Pre GASB 54
All other Governmental Funds
Reserved
$
$
$
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
Post GASB 54
All other Governmental Funds
Restricted
Assigned
Special revenue funds
47,379
Capital projects funds
844,742
Total all other governmental funds
$
797,233
$
898,169
$
1,547,751
$
672,917
$
892,121
Post GASB 54
2011
2012
2013
2014
2015
General Fund
Nonspendable
$
276,924
$
166,839
$
293,674
$
244,438
$
155,594
Restricted
548,489
658,194
317,190
135,255
131,931
Committed
442,833
Assigned
186,594
127,574
200,016
216,808
319,888
Unassigned
10,688,660
11,244,977
11,451,668
12,391,362
10,802,623
Total general fund
$ 11,700,667
$ 12,197,584
$ 12,705,381
$ 12,987,863
$
11,410,036
All other Governmental Funds
Restricted
$
$
$
$
45,500
$
45,500
Assigned
Special revenue funds
47,107
47,652
47,652
325,152
318,526
Capital projects funds
1,491,574
2,129,831
1,799,617
841,850
1,448,620
Total all other governmental funds
$
1,538,681
$
2,177,483
$
1,847,269
$
1,212,502
$
1,812,646
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.
92
THIS PAGE INTENTIONALLY LEFT BLANK
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
2006
2007
2008
2009
2010
$ 14,340,682
$ 15,577,511
$ 15,424,638
$ 15,680,749
$ 14,784,906
1,128,658
880,266
1,047,144
880,016
910,997
2,914,057
2,750,021
2,459,211
3,315,908
1,768,388
1,003, 660
1,082, 569
1,268, 774
1,684, 718
1,944,245
165,496
132,158
235,965
145,340
142,048
477,421
650,022
194,652
(1,345)
280,218
130,515
194,716
137,447
300,455
278,062
20,160,489
21,267,263
20,767,831
22,005,841
20,108,864
1,648,131
2,304,654
2,246,461
1,970,257
2,496,342
6,494,578
6,609,801
7,056,833
6,835,730
7,021,231
4,708,196
3,558,264
3,725,450
3,432,556
3,887,034
651,331
735,155
840,366
784,486
774,121
1,682,030
2,430,403
2,876,840
2,898,252
2,361,388
2,049
1,917,377
2,737,805
2,597,065
3,939,455
663,582
879,527
789,048
716,206
1,395,735
2,250,000
199,373
207,088
143,726
43,725
4,384
18,182,592
19,372,218
20,202,947
21,300,196
19,458,082
1,977,897
1,895,045
564,884
705,645
650,782
1,471,529
593,884
1,254,952
454,111
163,490
(1,471,529)
(593,884)
(1,254,952)
(454,111)
(163,490)
$ 1,977,897 $ 1,895,045 $ 564,884 $ 705,645 $ 650,782
7.29% 6.41% 4.91% 8.07% 11.99%
93
2011
2012
2013
2014
2015
$ 14,090,966
$ 13,618,635
$ 13,601,783
$ 13,930,877
$ 15,167,694
959,098
810,390
803,337
1,344,653
947,158
1,557,377
1,591,678
1,817,603
1,688,608
1,758,246
1,934,424
1,966,179
2,141,437
2,320,305
2,231,673
164,366
140,610
131,524
117,869
12 8, 23 5
97,743
90,968
37,029
16,653
108,794
59,462
130,293
207,076
258,086
122,107
18,863,436
18,348,753
18,739,789
19,677,051
20,463,907
2,402,241
2,328,568
2,346,281
2,541,546
2,904,553
7,053,282
7,583,018
7,947,221
8,947,627
8,966,077
4,044,642
3,886,698
3,733,977
3,773,689
4,255,636
790,937
844,748
933,117
1,004,642
1,270,399
2,295,959
2,374,748
2,491,559
2,644,598
2,514,495
682,057
495,254
1,110,051
1,117,234
1,530,430
17,269,118
17,513,034
18,562,206
20,029,336
21,441,590
1,594,318
835,719
177,583
(352,285)
(977,683)
1,334,934
500,000
265,000
323,000
323,000
(1,334,934)
(500,000)
(265,000)
(323,000)
(323,000)
$ 1,594,318 $ 835,719 $ 177,583 $ (352,285) $ (977,683)
94
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
6.8000
1,981,539,385
Fiscal Year
2,017,239,341
6.1000
1,847,439,149
6.6977
Ended
Tax Roll
1,544,203,050
Commercial
Personal
Sept 30,
Year
Residential Property
Property
Property
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
2015
2014
1,355,969,888
214,484,701
34,077,944
Total Net Market -
Assessed Value
Total Direct
Tax Rate
$ 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
1,604,532,533
7.3300
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
95
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.)
96
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
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
2015
2014
7.3300
7.5940
4.9729
2.1732
22.0701
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.)
96
VILLAGE OF NORTH PALM BEACH
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND 2006
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.
97
2015
2006
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
29,886,172
1
1.86%
Greater Fla Inv CO
25,530,387
1
1.53%
Olen Residential Realty
23,629,696
2
1.47%
16,800,000
3
1.01%
Florida Power & Light
18,677,604
3
1.16%
Wolfchase Associates, LLC
10,000,000
6
0.60%
Sanctuary Bay Trust Corporation
18,581,936
4
1.16%
13,200,300
5
0.79%
New Country Motor Cars
13,020,939
5
0.81%
CF02 Palm Beach III LP
12,501,222
6
0.78%
Domani Devolopment, LLC
11,690,020
7
0.73%
22,867,125
2
1.37%
Old Port Cove Holdings, Inc
9,987,421
8
0.62%
11,242,451
7
0.68%
Crystal Tree Property Owners
9,500,000
9
0.59%
16,465,781
4
0.99%
Chouest, Gary
8,217,716
10
0.51%
Riverside National Bank of Florida
6,153,244
8
0.37%
Village Shoppes at US 1, LLC
5,500,000
9
0.33%
701 US One Inc
5,160,153
10
0.31%
Total
$ 155,692,726
9.69%
$ 132,919,441
7.98%
Source: Palm Beach Country Appraiser
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
97
98
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX LEVIES AND COLLECTIONS
LAST 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
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%
2015
2014
11,761,226
11,350,738 96.51%
14,777
11,365,515
96.64%
Source:
Palm Beach Country Property Appraiser
98
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 102 for personal income and population data.
N/A Data not available.
99
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
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
2015
2,824,987
147,767
2,972,754
4.87%
234.94
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 102 for personal income and population data.
N/A Data not available.
99
VILLAGE OF NORTH PALM BEACH
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2015
Unaudited
Subtotal, overlapping debt 11,166,126
Village of North Palm Beach Direct Debt 0.00
Total direct and overlapping debt $ 11,166,126
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.
100
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
$ 151,736,000
1.15%
$ 1,744,964
Palm Beach County School Board
17,430,000
1.07%
$ 186,501
Other debt:
Palm Beach County
803,014,000
1.15%
9,234,661
Palm Beach County School Board
1.07%
Subtotal, overlapping debt 11,166,126
Village of North Palm Beach Direct Debt 0.00
Total direct and overlapping debt $ 11,166,126
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.
100
VILLAGE OF NORTH PALM BEACH
Pledged - Revenue Coverage
Country Club Bonds
Last Ten Fiscal Years
Unaudited
(1) Gross revenue includes interest revenue.
(2) Operating expenses excludes non -cash expenses
(3) Coverage should be not less than 1.00.
2006 was the first year the debt was outstanding, and was not a complete year.
101
Required
Fiscal
Gross
Operating
Debt
Year
Revenues (1)
Expenses (2)
Net Revenue
Service
Coverage (3)
2006
$ 2,348,813
$ 1,910,640
$ 438,173
$ 106,936
4.10
2007
3,507,441
2,991,621
515,820
392,505
1.31
2008
3,652,940
2,558,591
1,094,349
394,900
2.77
2009
3,412,235
2,587,171
825,064
394,900
2.09
2010
3,242,266
2,728,470
513,796
394,900
1.30
2011
3,579,692
3,049,301
530,391
394,900
1.34
2012
3,590,211
2,932,743
657,468
394,900
1.66
2013
3,586,001
2,986,080
599,921
394,900
1.52
2014
3,656,636
3,248,284
408,352
394,900
1.03
2015
3,799,245
3,226,907
572,338
394,900
1.45
(1) Gross revenue includes interest revenue.
(2) Operating expenses excludes non -cash expenses
(3) Coverage should be not less than 1.00.
2006 was the first year the debt was outstanding, and was not a complete year.
101
Calendar
Year
2006 (estimate)
2007 (estimate)
2008 (estimate)
2009 (estimate)
2010 (estimate)
2011 (estimate)
2012 (estimate)
2013 (estimate)
2014 (estimate)
2015 (estimate)
Sources:
VILLAGE OF NORTH PALM BEACH
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Unaudited
Population (1)
13,148
13,120
12,274
11,541
11,639
12,241
12,293
12,645
12,653
Median
Personal
Income (1)
$ 60,101
63,984
65,815
66,401
64,156
** *62,121
** *59,778
** *63,349
** *61,057
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
43,120
Palm Beach
County
Unemployment
Rate (2)
3.3
4.1
6.3
10.8
12.0
10.7
* *5.29
* *4.66
* *3.92
* *3.15
* 2011 Demographic data is not available due to Agency Software upgrade
that is not complete
** Village of North Palm Beach Unemployment Rate for 2012 -2015 presented
* ** North Palm Beach Median Personal Income for 2012 - 2015 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.
102
Employer
Palm Beach Country School Board
Tenet Health Care Corp
Palm Beach County Government
NextEra Energy (Florida Power & Light)
Hospital Corporation of America (HCA)
Florida Alantic University
Bethesda Memorial Hospital
Boca Raton Regional Hospital (2)
Veterans Health Administration
Jupiter Medical Center
Boca Raton Resort & Club
Office Depot
The Breakers Hotel
U.S. Sugar Corp
Florida Crystals
City of Boca Raton
City of West Palm Beach
VILLAGE OF NORTH PALM BEACH
PRINCIPAL EMPLOYERS...
Unaudited
103
2014 **
2005
Percentage
Percentage
of Total
of Total
Employees Employment
Employees
Employment
22,000 3.20%
21,618
3.57%
6,100 0.89%
5,000
0.83%
5,507 0.80%
6,379
1.05%
3,854 0.56%
2,924
0.48%
1)
2,714 0.39%
3,750
0.62%
2,655 0.39%
1,400
0.23%
2,600 0.38%
1,280
0.21%
2,500 0.36%
1,700
0.28%
2,500 0.36%
1,400
0.23%
2,000 0.29%
1,400
0.23%
1,292 0.19%
2,200
0.36%
2,000 0.29%
2,680
0.44%
2,000 0.29%
1,800
0.30%
900 0.13%
2,100
0.35%
1,700 0.25%
2,000
0.33%
1,228 0.18%
1,991
0.33%
1,326 0.19%
1,700
0.28%
62,876 9.14%
61,322
10.12%
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 2015 data was not available -
FY 2005 & 2014 data presented
Notes:
(1)
Formerly Columbia Palm Beach
Health Care Systems, Inc
(2)
Intracoastal Health Systems, Inc
- now part of Tenet Healthcare Corp
103
VILLAGE OF NORTH PALM BEACH
Full-Time
Equivalent Village Government Employees by Function
LAST
TEN FISCAL YEARS ( ")
Unaudited
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Number of Employees:
General Government
Village Manager - Full-Time
1
1
1
1
1
1
1
1
1
1
Assistant Village Manager - Full-Time
0
0
0
0
0
0
0
0
0
0
Systems Specialist
Full-Time
2
2
2
2
2
2
3
3
3
3
Part -Time
0
0
0
1
1
1
0
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
1
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
7
Part -Time
0
0
1
1
1
1
1
1
1
0
Public Works
Full-time
54
47
48
38
37
37
37
37
37
35
Part -Time
3
0
0
0
0
0
0
0
0
0
Public Safety
Full-time
66
68
68
67
67
67
0
0
0
0
Part -Time
14
13
12
11
12
12
0
0
0
0
Law Enforcement
Full-time
0
0
0
0
0
0
43
43
43
36
Part -Time
0
0
0
0
0
0
12
13
13
13
Fire Rescue
Full-time
0
0
0
0
0
0
24
24
24
24
Part -Time
0
0
0
0
0
0
0
0
0
0
Community Development and Planning
Full-time
0
9
10
9
9
9
8
8
10
11
Part -Time
0
1
1
2
2
2
2
2
1
0
Leisure Services
Library
Full-time
7
7
7
6
6
6
6
6
6
7
Part -Time
8
8
8
10
10
10
10
10
10
9
Recreation
Full-time
15
15
17
9
7
6
6
6
6
6
Part -Time
31
39
42
42
42
43
43
43
43
43
Other Government - Country Club
Full-time
18
19
18
5
5
7
5
6
8
8
Part -Time
24
25
22
21
21
64
56
54
65
65
Total Number of Employees Budgeted FY Ending
254
265
268
236
234
279
268
268
282
275
Source: Village of North Palm Beach Budget Report
104
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
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-
7,411
7,422
7,472
7,466
7,466
7,473
7,470
7,471
7,630
13,203
12,085
11,974
10,667
10,165
9,962
10,065
10,720
10,720
11,167
7,558
7,152
7,163
7,214
7,070
7,071
7,076
7,471
7,616
7,238
95
104
104
110
110
98
98
111
98
102
2.935
2
3
2.5
2.71
-
-
-
-
-
410
545
549
448
402
260
211
216
238
295
4,272
4,269
5,520
6,305
4,951
2,564
2,566
1,254
2,799
3,871
4.69
4.73
5.17
5.01
5.12
5.19
5.26
5.11
5.10
5.11
1,056
1,034
1,114
1,214
1,146
1,179
1,326
1,296
1,110
1,499
(1)
1,875
1,619
1,548
1,744
1,616
1,835
2,480
2,103
2,515
1,767
1,617
729
613
391
575
817
790
887
886
144
126
115
73
38
72
100
62
28
33
21
24
23
28
28
38
49
37
53
55
1,520
1,600
1,400
1,125
1,005
1,260
1,311
2,074
1,439
1,444
47,371
42,372
33,122
35,681
39,277
40,658
43,340
44,966
46,546
47,339
365
579
389
297
354
298
283
262
250
256
136
171
171
180
184
173
162
190
194
193
(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
105
VILLAGE OF NORTH PALM BEACH
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Unaudited
Function/Program:
General Government
No. of General Government Buildings
11
11
11
23
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
32.318
32.318
32.318
32.318
32.318
32.318
32.318
32.318
32.318
32.318
Number of Street Lights (within corp =oundin
425
425
513
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 Firemen/Paramedics /EMTs
23
23
23
23
23
23
22
22
22
22
Number of Fire Captains
0
0
0
0
0
0
1
1
1
1
Police /EMS Protection:
Number of Stations
1
1
1
1
1
1
1
1
1
1
Number of Policemen & Officers
33
32
32
31
31
31
28
28
28
28
Number of Police Captains
0
0
0
0
0
0
2
2
2
2
EMS Protection
0
0
0
0
0
0
0
0
1
1
Leisure Services
Recreation
Number of Parks
4
4
4
4
4
4
4
4
4
4
Public Tennis Courts
2
2
2
2
2
2
2
2
2
2
Swimming Pool
1
1
1
1
1
1
1
1
1
1
Number of Marinas
1
1
1
1
1
1
1
1
1
1
Library
Number of Libraries
1
1
1
1
1
1
1
1
1
1
Number of Volumes
47,371
42,372
33,122
35,681
39,277
40,658
43,340
44,966
46,546
47,339
Other Government
Country Club
Golf Course
I
I
I
I
I
I
I
I
I
I
Driving Range
I
I
I
I
I
I
I
I
I
I
Tennis Courts
10
10
10
10
10
10
10
10
10
10
Restaurant
0
0
0
0
1
1
1
1
1
1
Snack Bar
0
0
0
0
1
1
1
1
1
1
106
OTHER REPORTS
NH
&M
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT B. NOWLEN (193&l984 }. CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HE NORIX. JR, CPA
WEST PALM BEACII OFFICE
JANET R. BAR ICEVICH, CPA
i IORTHBRI DGH CENTRE
TERRY L. MORTON. JR. . CPA
SIS h. F1.ACil.ER DRIVE, $L]ITE 17DD
N. RONALD BENNETT, CVA,ABV, OFF, CPA
ALEXIA G. VARGA, CFE, CPA
POST OFFICE BOX 347
EDWARD T HOLT. JR., PFS, CPA
WEST PALM BEAC 11, FLORIDA 33.3!12 -0347
BRIAN J. BRESCIA. CFP", CPA
TELEPHONE [5611659 - -1,060
FAX (5611835 -0629
W W W.11 I MC PAiCOM
KATHLEEN A- MINER, CPA
MARK J. SYMASTER, CFE, CPA
RYAN M. SHORE. CFP*, CPA
TIMOTHY H. SCHMEDES, CFP°, CPA
WEI PAN, CPA
WILLIAM C. KISKER, CPA
REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN
BELLE GLADE
333 S.E. 2nd STREET
AUDIT OF FINANCIAL STATEMENTS
POST OFFICE Box 338
IDA 3
BELLE GLADE, FLORIDA 33430.0338
PERFORMED IN ACCORDANCE WITH
TELEPHONE (56 1) 996.5612
FAX (561 ) 996.6248
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, 2015, 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 16, 2016.
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.
107
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 16, 2016
108
NH
&M
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
NORT I -I B RI DGE CENTRE
51$ N- FLAG I -ER DRIVE, SUITE 1700
POST OFFICE BOX 347
WEST PALM BEAC 11, FI_ORIDA }.3302.4347
TEI_EPH ONE [56 1 1 659 -3066
PAX {561 1 835-0628
W`WW.NHMCPA.COM
MANAGEMENT LETTER IN ACCORDANCE WITH
THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Report on the Financial Statements
EVERETT S. NCWLEH (I 93&i 984 ), CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
JANET R. SARICEVICH, CPA
TERRY L. MORTON, JR., CPA
N. RONALD SENN ETT. CVA, ASV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T HOLT. JR., PPS, CPA
BRIAN J, BRESCIA, CFP', CPA
KATHLEEN A. MINER, CPA
MARK J. SYMASTER. CFE, CPA
RYAN M. SHORE, CFP', CPA
TIMOTHY H. SCHMEDES, CFP-. CPA
WEI PAN, CPA
WILLIAM C. KISKER, CPA
BELLE GLADE OFFICE
333 5 -E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX (561) 996.6248
We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for
the fiscal year ended September 30, 2015, and have issued our report thereon dated
March 16, 2016.
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 16, 2016, 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.
109
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. and 10.556(7), Rules of the Auditor General, require 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, 2015.
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. and 10.556(7), Rules of the Auditor General, require 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, 2015, 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, 2015. In connection with our
audit, we determined that these two reports were in 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.
110
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, 2015, 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 16, 2016
West Palm Beach, Florida
111
NH
&M
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT S. NOWLEN (193&1984), CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
WEST PALM BEACI I OFFICE
JANET R. SARICEVICH, CPA
NpRFRBRiDpE CENTRE
TERRY L. MORTON, JR., CPA
515 N. FLAG LER Dkl VE, SUITE 170D
N. RONALD BENNETT, OVA, GA CFE, CPA
ALEXIA G. VRFiGA, CFE, CPA
POST OFFICE BOX 347
EDWARD T HOLT. JR., PFS, CPA
WEST PALM BEACH, FLORIDA 3.3302.0347
BR IAN J, BRESCIA, CFP', CPA
TELEPHONE (561) 659 -3fM
PAX (561) 83547628
W W W -N H MCPA.COM
KATHLEEN A. MINER, CPA
MARK J. SYMASTER. CFE, CPA
RYAN M. SHORE, CFP', CPA
TIMOTHY H. SCHMEDES, CFP-. CPA
WEI PAN, CPA
WILLIAM C. KISKER, CPA
INDEPENDENT ACCOUNTANT'S REPORT
ON COMPLIANCE WITH SECTION 218.415,
BELLE GLADE OFFICE
FLORIDA STATUTES
333 5.E
PAST OFFICE BOX 336
ICE BOX 338
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX (561) 996.6248
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have examined the Village of North Palm Beach, Florida's compliance with Section 218.415, Florida
Statutes during the year ended September 30, 2015. 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, 2015.
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 16, 2016
112
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL