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2000 CAFR .~s1;~~~ ~ J ~ _ ~1 1~ z d ~ , r,~~ - J~`~e ?l~l~a~e cye ~ J`~ ~ COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2000 1 = ~ ji~.~ t` ~ s`~~, ~ ~ ~ar~ ~.~4~ ~r.'flf~d! ~~~~aaa~ t.l l •,:yf'~~I~~ i~ ~ f ` t~ kYNk ~i ~ j 'i 51'11 y~~fr+ ~ (r{j -~,~~'' ~ s ~~'ar-- ~ f~ ~ - w f I ~ ~ r l~ J t Y ~r~~ ~- t.; i z t'` ~ 41....ra~ ~S. S' 1.as.R+"~~5 '~til~ J3 ry€t s .~'~,+~5. T~ ~ i „~rx,:i.: -~- 4- _ ~ .,,yy(~ c~ 1.+L4~e•a. sra rt .~asi~. - j ~ Sf+ ;+a74.:. ~f ~ Sri ",-~.,e. _ •--.~.~.,.~......_ _~__`-_ •r_...... NEW PUBLIC SAFETY BUILDING THE VILLAGE - OF NORTH PALM BEACH, FLORIDA Comprehensive Annua? Financial Report September 30, 2000 Prepared by; Finance Department Shaukat Khan Director of Finance a:.' . ~ r I I I I I I I I 'I I i I 'I I ii I TABLE OF CONTENTS INTRODUCTORY SECTION Organization Chart vii List of Principal Village Officials viii Letter of Transmittal ix GFOA Certificate of Achievement for Excellence in Financial Reporting xix FINANCIAL SECTION Independent Auditors' Report 3 GENERAL PURPOSE FINANCIAL STATEMENTS: Combined Balance Sheet -All Fund Types and Account Groups 6 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types 10 Combined Statement of Revenues and Expenditures -Budget and Actual (Budgetary Basis) -General Fund 11 Statement of Revenues, Expenses and Changes in Retained Earnings -All Proprietary Fund Types 12 Combined Statement of Changes in Net Assets -All Pension Trust Funds 13 Statement of Cash Flows -All Proprietary Fund Types 14 Notes to Financial Statements 15 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS: Required Supplementary Information: Schedule of Funding Progress -General Employees Retirement Fund 34 Schedule of Employer and State Contributions 35 Notes to Required Supplementary Information 36 General Fund: Comparative Balance Sheets 38 Schedule of Revenues and Other Financing Sources -Budget and Actual 39 Schedule of Expenditures and Other Financing Uses Budget and Actual (Budgetary Basis) 43 Enterprise Fund: Schedule of Revenues -Budget and Actual -Country Club Fund 62 Schedule of Expenses -Budget and Actual -Country Club Fund 64 Trust Funds: Combining Balance Sheet -Trust and Agency Funds 66 Combining Statement of Plan Net Assets -All Pension Trust Funds 68 Combining Statement of Changes in Assets and Liabilities -All Agency Funds 69 Combining Statement of Changes in Net Plan Assets -All Pension Trust Funds 70 General Fixed Assets Account Group: Schedule of General Fixed Assets - By Source 73 Schedule of General Fixed Assets - By Function and Activity 74 Schedule of Changes in General Fixed Assets - By Function and Activity 76 Contents iii -~ ~1 TABLE OF CONTENTS (Continued) STATISTICp?L SECTION 1 Table I General Governmental Expenditures by Function 81 Table II General Governmental Revenues by Source 82 Table III Property Tax Levies and Collections 84 ~ 1 Table IV Assessed Value of Taxable Property 85 l Table V Property Tax Rates -Direct and Overlapping Governments 86 Table VI Computation of Direct and Overlapping Bonded Debt -General ~ ~ Obligation Bonds 87 Table VII Computation of Legal Debt Margin 89 Table VIII Schedule of Revenue Bond Coverage -General and Enterprise Funds 90 Table IX Pro ert Value, Construction, and Bank Deposits ~ ' P Y 92 Table X Principal Taxpayers 93 Table XI Miscellaneous Statistics 94 l~ REQUIRED REPORTS I, Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of General Purpose Financial Statements Performed in Accordance with GovernmentAuditing Standards 97 1 Management Letter 99 ~l ~l l ''I iv C~~~te~ is i ~_J :t,.. a y :~ti Yt 3 liV TROD UCTOR l SECTION f_r t ~4 l .:- i r i i i i i i i i i 'i 'i i i i i i i. THE VILLAGE OF NORTH PALM BEACH, FLORIDA Organization Chart September 30, 2000 The Residents VILLAGE BOARDS • COUNTRY CLUB ADVISORY • CODE ENFORCEMENT Village • LIBRARY ADVISORY • RECREATION ADVISORY Council • PLANNING COMMISSION a` • BOARD OF ADJUSTMENT • CONTRACTORS _ • PENSION Village ~ Village Village Attorney Manager ` Clerk O s,. c n O N m Public Public " -~ ~ Finance ~ Services Safety ~ Recreation Library Country Club THE VILLAGE OF NORTH PALM BEACH, FLORIDA ~ l PRINCIPAL VILLAGE OFFICIALS i SEPTEMBER 30, 2000 L NAME TIT E i Mayor Joseph A. Tringali Vice Mayor Edward M. Eissey, Ph.D. President Pro Tem David B. Norris - ~ ~ Council Member Charles R. O'Meilia Council Member Donald G. Noel Village Manager Dennis W. Kelly Director of Finance Shaukat Khan, CPA l ~ 1 Village Clerk Kathleen F. Kelly :1 .1 l ~ ~ viii introductory Section j _ G-~ I ~o.~ THE VILLAGE OF North Palm Beach 501 U.S. HIGHWAY 1, NORTfi PALM BEACH, FLORIDA 33408 (561)848-3474 Department of Finance January 16, 2001 Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida Presented for your consideration and review is the Village's Comprehensive Annual Financial Report for the year ended September 30, 2000. This report was prepared by the Village's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Village. We believe the data, as presented, is accurate in all material respects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the Village as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader to gain the maximum understanding of the Village's financial affairs have been included. ORGANIZATION AND CONTENT The organization and content of this report is based primarily on the financial reporting standards set by the Governmental Accounting Standards Board (GASB) and recommendations of the Government Finance Officers Association of the United States and Canada. It includes all of the funds and account groups of the Village and, in accordance with GASB Codification of Governmental Accounting and Financial Reporting Standards, Sec- tion 2100, "Defining the Reporting Entity", includes only those activities over which the Village is financially accountable. The accompanying financial statements report the financial results of all services provided by the Village including public safety (police, fire and emergency medical services), sanitation, cultural and recreational services (parks, marina, library and community center), a Village operated country club, public improvements, planning, zoning and general administrative services. The report is designed to meet the needs of a wide variety of readers and is divided into four principal sections. These sections consist of: Introductory Section -This section includes the names of both elected and appointed officials who are re- sponsible for policy matters and the management of the Village's affairs, an organizational chart of key management positions, the Certificate of Achievement for Excellence in Financial Reporting awarded to the Village by the GFOA, and this transmittal letter which discusses the major factors that affected the operating results for the year. Financial Section -The financial section includes the general purpose financial statements and the com- bining and individual fund and account group financial statements and schedules, as well as the independent auditors' report on these financial statements and schedules. Introductory Section ix i I Statistical Section -This section highlights multiple year comparative trend data, and physical, economic, social and political characteristics of the Village. ®ther Reports -This section includes the independent auditors' report on compliance and on internal con- trol over financial reporting and comments to management. ~ THE VILLAGE ~ 1 i The Village of North Palm Beach is primarily a residential community having been incorporated as a political subdivision of the State of Florida in 1956. The registered population of the Village is approximately 12,000, which increases to approximately 18,000 during the winter months by residents who list their northern homes as { their official place of residence. Residents are generally in the middle to upper income brackets. Taxable as- sessed valuation per capita is approximately $60,000. r ~ ~ Located in the northeastern quadrant of Palm Beach County, Florida, the Village has an unusual amount of wa- terfrontproperty created by a number of lakes, canals and the Atlantic Ocean. '~i The governing body of the Village consists of a five member Village Council, each of whom is elected for two- J year overlapping terms. Day to day affairs of the Village are under the leadership of a Village Manager who is appointed by the Council. r J SIGNIFICANT CURRENT YEAR ACC®MPLISHMENTS r J Community Planning J • Initiated waterway dredging program. • Started planning to renovate the Village Hall. - Public Safety The following acquisitions were made by the Public Safety Department during the year: J ~ • Three new patrol cars for the Police Division. ~ ~ i • Purchased various new equipment and upgraded the existing equipment for the Public Safety Department. Public Services l • Added one part-time labor position and two full-time laborer positions. • Ex ended $40,000 on street resurfacin and avin P g P g • Replaced a packer truck, two 3-wheel dumpsters, one utility truck, and five vehicles, and purchased various machinery and equipment to replace old and obsolete equipment. Culture & Recreation 1 • Added one part time library assistant. ri x Iritrv~uctory SCCtioi~ • Added new books and publications in the amount. of approximately $55,000 and an audio & video collection of $6,000 to the Library. • Added a new full time position for teens and special events programs. • Purchased $45,000 worth of playground equipment and outside furniture. • Spent $58,000 on public events, including the Village Heritage Festival. Country Club • Added one full time and one part time position in the Golf Course Maintenance Department. • Spent over $55,000 to add, replace and upgrade machinery and equipment for Golf Course Maintenance. • Completed the renovation of the Country Club Restaurant. Finance The Finance Department was the recipient of the Government Finance Officers Association's coveted (GFOA) Certificate of Achievement for Excellence in Financial Reporting for its fiscal year 1999 Comprehensive Annual Financial Report (CAFR). This is the twelfth consecutive year the Village has received this award. The Vil- lage's CAFR must meet a number of stringent financial reporting requirements in order to qualify for the award. FINANCIAL DATA Financial Reporting System and Budgetary Controls The Village's financial records for its general governmental operations are maintained on the modified accrual basis which means that revenues are recorded when available and measurable and expenditures are reported when goods and services are received and the related liabilities are incurred. The financial records for its Enterprise Fund (i.e., the Country Club operation) are maintained on the full accrual basis of accounting similar to that followed by commercial enterprises. In developing and evaluating the Village's financial. and accounting system, consideration is given to the ade- quacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition; and (b) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived; and (b) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the Village's internal ac- countingcontrols adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the subfunction level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of subfunction balances are not released until additional appropriations are made available. Open encumbrances are reported as reservations of fund balance at September 30,.2000. Introductory Section xi i General Government Operations Revenues Revenues and expenditures for general government functions are accounted for in the general fund. Revenues ~ i from general governmental operations totaled $9,841,111 in fiscal year 2000, a increase of 9.0% from the previ- 1 ous fiscal year. Ad valorem taxes represent the single most important source of revenue (44.3% of general revenue sources) to the Village. The ad valorem tax millage rate was 5.60 mills for the 2000 fiscal year. This P j was unchanged when compared with the prior year. Property valuations of approximately $804,000,000 for ~ 2000 increased approximately $32 million, or 4% more than the prior year. ~ i The Village's collection rate of ad valorem taxes remains strong at 96.60% of current assessments. Last year's collection rate was approximately 96.41% of assessed taxes. We also collected small portions of previous year's j delinquent taxes. The increase in licenses and permits revenue is due to the increase in building permit revenue. The increase in intergovernmental revenues is attributable to the increase in revenues from the'/z cent sales tax. ,- 7 The amount of revenues from various sources and the variances from last year are shown in the following table: JI Increase Percent Percent (Decrease) Increase Revenue Sources Amount of Total from 1999 (Decrease) Taxes $ 6,794,249 69% $ 266,042 2.9% Licenses and permits 756,419 8% 212,769 2.4% Intergovernmental revenue 1,273,110 13% 128,527 1.4% Charges for services 437,811 4% 80,475 .9% Fines and forfeitures 149,690 2% 30,505 .3% Interest income 290,413 3% 51,041 .6% Miscellaneous 139,419 1% 43,526 .5% $ 9.841,111 100% 812 885 9.0% ` Expenditures Expenditures for general governmental purposes totaled $10,136,172, an increase of approximately 13.6% from 1999. Increases and decreases in levels of expenditures for major functions of the Village when compared with the preceding year are shown in the following tabulation: ~- Increase Percent Percent (Decrease) i~:~crease Function Amount of Total from 1999 (Decrease) General government $ 1,211,403 12% $ 38,925 .4 % `- Public safety 3,191,976 31% 247,487 2.7 Public services 2,806,141 28% 314,824 3.5 % Leisure services 991,603 10% 134,658 1.6 % Other 442,494 4% (126,544) (1.4)% , Capital outlay 727,258 7% (12,058) (.1)% Debt service 765,297 8% 618,980 6.9 % ~ $ 10,136,172 100% .$1,216,272 13.6 % Fund Balance Unreserved fund balance continues to be the focus of financial planning for the future. At September 30, 2000, the Village had a total General Fund balance of $3,489,459. Of that amount, $2,072,911 was unreserved, unap- propriated, and available for future appropriation or use, which is approximately 1.5% less than last year. Last 9 xii introductor~r Section ] year's unreserved balance carried forward to 2000 was $2,104,046. The following schedule highlights the major components of the 2000 general fund balance: Total fund balance $ 3,489,459 Less non-expendable assets and encumbrances: Inventories 28,532 Prepaid items and deposits applicable to next year 2,899 Restricted assets 55,108 Encumbrances (current year appropriations) 324,594 Amount designated for subsequent year 1,005,415 Total net available spendable resources $ 2072,911 The unreserved, unappropriated portion of fund balance represents approximately 21% of next year's budgeted expenditures and is adequate to maintain general fund operations through December 2000, when the property tax revenues are received. i I Proprietary Fund (Country Club Activities) The Village's sole proprietary fund is represented by the operation of the North Palm Beach Country Club. Revenues (both operating and nonoperating) totaled $2,353,089 for 2000, which represented a decrease of ap- proximately $7,000 (0.3%) from last year. Total expenses were $2,708,112 for 2000, an increase of approxi- mately $225,000 (9.0%) from the prior year. The net loss increased by approximately $231,000. At September 30, 2000, the Club's net current assets were $(338,666), representing a decrease of $1,094,642 from last year. Current assets and related current obligations at September 30, 2000 and 1999, consist of the following: 2000 7999 Current assets: Cash and cash equivalents $ 266,731 $ 1,480,113 Accounts receivable, members 53,899 45,323 _ 320,630 1,525,436 Current liabilities: Accounts payable 110,111 227,785 Compensated absences 94,176 88,896 Current portion on long-term debt 304,076 339,145 Miscellaneous deposits 7,000 - Deferred revenue 143.933 113.634 659.296 769.460 Net current assets (working capital) 338,666) x__755,976 Pension Fund The Village sponsors two pension funds for its employees: the general employees' fund, and the police officers' and firefighters' fund. The Village contributed $372,744 to the general employees' retirement fund and $53,067 to the police officers' and firefighters' retirement fund during the year. The State of Florida also contributed $78,246 to the police officers' and firefighters' fund. The State does not contribute to the general employees' fund. Earnings from invested assets (including net appreciation in fair values) of both funds amounted to $1,269,643. Expenses totaled $578,874 which included $466,794 paid to retired employees or their beneficiar- ies. At September 30, 2000, the fair market value of the funds' assets was approximately $12,966,000. Introductory Section xiii Cash Management The Village uses pooled cash procedures, which allow better control over funds and greater investment flexibil- ity and return. Except for the pension trust funds, all other governmental and proprietary funds are deposited in c- one central account with a financial institution registered with the State Treasurer as a qualified public deposi- tory. Cash balances in excess of current needs are invested in repurchase agreements through the Village's pri- mary depository or the State Board of Administration's Investment Account. Interest earned on invested bal- ,-- ances resulted in a yield of approximately 6.5% this year which is allocated to each fund based on their average monthly balance. J Excess cash of the pension plans is controlled by the pension boards who have hired professional money man- agers responsible for managing the assets of those funds. Debt Administration ~ j The Village has entered into lease agreements to finance the purchases of ambulances and a fire truck. All cur- rent maturing obligations of $79,930 in the general fund were timely met and are in compliance with all lease ~ covenants and resolutions in connection with these obligations. J The Villa e issued a $6,560,000 promissory note to First Union National Bank to finance the acquisition, con- r struction, equipping, and improving of a public safety building, a community center, and a recreation building. g A portion of the proceeds were also used to refinance an existing loan in the enterprise fund. The promissory note is secured by franchise fees and public service taxes of the Village. The Village made interest and principal payments of $631,337, consisting of $535,892 in the general fund and $95,445 in the enterprise fund, on the note in a timely manner. The Village is in compliance with all loan covenants and resolutions in connection ~ J with this obligation. 1 The Village issued an $800,000 promissory note to Fidelity Federal Savings to finance the renovation of the Vil- lage's country club restaurant and clubhouse. The promissory note is secured by franchise fees and public ser- vice taxes of the Village. The Village made interest and principal payments of $177,030 on the note in a timely manner. The Village is in compliance with all loan covenants and resolutions in connection with this obligation. The Village issued a $600,000 promissory note to Fidelity Federal Savings to finance capital expenditures for the completion of the Public Safety facility. The promissory note is secured by franchise fees and public service taxes of the Village. The Village made interest and principal payments of $132,774 on the note in a timely manner. The Village is in compliance with all loan covenants and resolutions in connection with this obligation. The Village issued a promissory note to Wachovia Bank to finance the purchases of automobiles. A portion of the proceeds was also used to finance the purchase of equipment in the enterprise urd. The promussory note is unsecured. The Village made principal and interest payments of $21,139, consisting of $16,700 in the general fund and $4,439 in the enterprise fund, on the note in a timely manner. The Village is in compliance with all loan covenants and resolutions in connection with this obligation. i Risk Management ~- I, The Village is a participating mernber in two self insured risk management pools to provide property and casu- alty coverage for the Village and group medical coverage for the Village employees. The Village is responsible for its own claims and losses and group medical coverage, unlike the property casualty .coverage, where all of the participating pool members share the cost. The Village provides and pays for group medical insurance coverage to all Village employees. The Village also provides family coverage at a reduced cost. ® x6;; lntrodu~tory Rectiors ~ Due to the increasing high cost of group health coverage, every effort is made by the Village to reduce their costs while still providing adequate coverage to the Village employees and their families. Total claims for 2000 were approximately $818,000. ~ In fiscal year 1999-00, the Village contributed approximately $574,000 into the risk management pool for prop- . erty casualty coverage and workers compensation and approximately $852,000 for group health. INITIATIVES AND FUTURE PR®JECTS Country Club The Country Club Clubhouse redevelopment project is almost closed out. The construction has been completed, with certificates of substantial completion having been issued on the last project. The Village is currently final- ~ izing the paperwork that will effectively release the contractor and complete the project. There will be some minor improvements that will be done by the Village that were not part of the redevelopment contract with the construction contractor. Those improvements are viewed as budget items, and will be handled through the an- nual budget. The Village will probably look at doing some redesign of the golf course on at least 3 or 4 holes, with the intention of attempting to extend the length of the course from a PGA modified category to as close to a championship course as possible. It is anticipated that the design phase of the course redesign will take place during fiscal year 2000-2001. In addition, there should be some improvements on the golf course with new rest- rooms, new curbing in the parking lot, and some landscaping improvements, if funds are available. Promenade Shoppes of Northlake The Promenade Shoppes of Northlake is progressing steadily. The Pu61ix grocery store is completed and is fully operational. Other boutique and smaller type businesses have occupied the first phase of the building pro- gram. There have been some ongoing negotiations and discussions with Lowe's Building Supply Company. They are viewed as a prospective buyer of the entire property formerly known as the Twin City Mall, with the expectation that, if they do buy the property, they will market it in its entirety. Northlake Boulevard Corridor Task Force The Village of North Palm Beach participates with the Town of Lake Park, the City of Palm Beach Gardens, and Palm Beach County as part of the Northlake Boulevard Corridor Task Force (Task Force). The Task Force meets once a month and has steadily been progressing toward awarding a contract to a landscape architect for the purpose of installing various improvements on Northlake Boulevard from U.S. Highway #1 to Military Trail. In addition, the Task Force is steadily progressing toward an overlay zoning code where each municipality and the County will adopt appropriate zoning changes to the Northlake Boulevard Corridor for the purpose of im- provingproperty values on the Boulevard. Village Hall Renovation The Village Council should have under contract during the early part of fiscal year 2000-2001 an architect for the purpose of designing the Village Hall Renovation Program. Once the designs are completed, then the pro- ject can be bid out for construction. The latest estimated value for construction, including architectural work, is $1,500,000. Master Recreation Plan -Anchorage Park The Recreation Advisory Board continues steady progress on completing the amendments to the Recreation Master Plan to show changes to the Anchorage Park portion of that plan. The changes were called for upon ac- quisition of the Seacoast Utility Plant last year, which expanded the amount of property the Village owns in the Anchorage Park area. The Master Plan should include the demolition of the sewage plant aerator/holding tanks, Introductory Section xv 1 future sports facilities, parking, etc. Once the plan is complete, then the Recreation Advisory Board, in concert with the Village Council, can proceed to implement different phases of it over a period of years. U.S. Highway #1 Corridor Study ~ The Florida Department of Transportation is currently in the process of a major redevelopment study of the U.S. I Highway #1 corridor running through North Palm Beach. The intent of the program is to determine what im- provements in the way of landscaping, brickpavers, signalization, signage, etc. would be appropriate for improv- ~ ' ing the aesthetics of the U.S. Highway #1 corridor. This project may take 1 to 3 years to complete. The project will include the study, design and actual construction. It is anticipated that the Village will play a role in the .design initially, but will not be directly involved in the construction, in that it is a State highway, with the pro- r 1 ject being sponsored/hosted by the Florida Department of Transportation. 1 Prosperity Farms Road Task Force r~ ' Similar to the work being done on the Northlake Boulevard Task Force, a group of citizens has been appointed by the Village Council to create the Prosperity Farms Road Task Force. The goals and mission of the Prosperity ~ Farms Road Task Force is somewhat similar to the Northlake Boulevard Task Force. They are working closely I with the Palm Beach County Commission through the local County Commissioner to obtain necessary funding and support for redesigning and creating a traffic calming effect on Prosperity Farms Road. The end result is to i l calm traffic and turn the road more toward being a neighborhood street. The Task Force is expected to complete 1 an interlocal agreement during fiscal year 2000-2001 between the Village of North Palm Beach and Palm Beach County. Palm Beach County has informally corrunitted $1,000,000 to the project. It should be noted that this is ,- essentially aCounty project, with the Task Force serving in an advisory capacity to the Village Council, who in turn will provide comments and recommendations (albeit formally through a study) to the County as to how ` they would like to see Prosperity Farms Road redeveloped. In essence, it will become a collaborative project between the County and the Village. ` J Canal Dredging 1 One of the noted developmental signatures of the Village is its intricate network of canals and waterways. The canals and waterways enhance the property values of the Village and give it its character as a boating commu- nity. The canals were built in the 1950s as part of the original development of North Palm Beach. However, the canals have not been maintained by the Village in that length of time, and, as a result, have silted up and created navigational problems for many boaters. In order to alleviate this problem, the Village is going to initiate apro- gram to dredge the canals and the North Palm Beach Waterway. This project is anticipated to go to bid during ~ ~ fiscal year 2000-2001 and be completed during the same fiscal year. The dredging is anticipated to enhance the navigability of the waterways throughout the Village and indirectly enhance the values of the properties adjacent to the waterways and t he canals. Public Safety North Substation The Village is aggressively pursuing acquisition of property for a permanent location and facility for the Public Safety North Substation. The purpose of the North Substation is to enhance the efficiency and response time of ~- Public Safety Services north of the Parker Bridge. The Parker Bridge, being a drawbridge, serves as an im- pediment to the Village's ability to respond effectively to the citizens living north of the bridge. In order to al- leviate the risk incurred by the drawbridge, the Village is pursuing the development of a permanent substation. The Village council has formed a "real estate committee" for the purpose of identifying and recommending properties that are subject to being acquired by the Village on which to build a building. Once the property is identified and acquired, then the Village will proceed to finance and design a new building. The purpose of the substation is to house first responders for fire, police, and emergency medical services, such that they can re- spond to an initial call. Should they need additional backup or reinforcements, they would be provided by the main station on U.S. Highway #1. ~ i-~ ~ ra Xi/i introductory Section ECONOMIC OUTLOOK Construction Projects The number of construction projects in the Village is beginning to taper off during fiscal year 2000-2001. The main thrust of activity is the Watermark Communities, Inc. (WC)) development known as Paradise Harbor, lo- cated on Prosperity Farms Road next to the Village's Community Center. Paradise Harbor will be large single- family estate type homes that will add considerably to the Village's property values. These homes will range in value from $500,000 to $1,000,000. The initial construction of this development started during the summer of 2000 and is expected to continue throughout fiscal year 2000-2001. Once this development is completed, the only remaining large development to be completed in the foreseeable future is the Promenade Shoppes of North- lake (formerly known as Twin City Mall). Pulte Homes, Inc. is finishing construction of the townhouses known as Prosperity Harbor North. These units are selling in the neighborhood of $300,000 to $350,000 each and should be completed during fiscal year 2000-2001. Latest reports are that all those units have sold, including those that are under construction or yet to be started. As of this writing, the property values in the Village over- all have been holding, if not increasing, quite well over the past fiscal year, and are anticipated to continue their upward climb over the next twelve to twenty-four months. The Village continues to experience rebuilds throughout various neighborhoods, mostly on the waterfront or canal front properties. Rebuilds being single- family residential units that are bought and completely demolished and replaced with a new building on the old foundation. The rebuilds will continue for a number of years and they, too, will enhance property values as they proliferate. After that, the Village's expansion or growth will be fairly static, with the Village having officially reached build out. The only new growth that the village will experience will be through the annexation of exist- . ing neighborhoods. Annexation There are a number of neighborhoods and commercial areas around the Village that are subject to annexation into the Village if and when conditions are ripe for such annexations. The neighborhoods of Lost Tree, Portage Landing, and Hidden Key are all in the unincorporated portion of Palm Beach County and are subject to being annexed into the village of North Palm Beach when they express a desire to do so. Commercial areas around U.S. Highway Alternate AlA in the vicinity of Richards Road are also subject to being annexed into the Village. These annexations will be the only substantive additional increase in property values the Village will experience once it reaches build out. OTHER INFORMATION Independent Audit As required by Florida Statutes, an audit of the books of account, financial records, and transactions of all de- partments of the Village has been conducted by a firm of independent Certified Public Accountants. The report of Haas, Diaz & Co., Certified Public Accountants, on page three of this report contains their opinion as to the fair representation of the Village's financial statements. The Village continues to receive an unqualified opinion on its financial statements. Awards The Government Finance Officers Association of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to The Village of North Palm Beach, Florida for its compre- hensive annual financial report for the fiscal year ended September 30, 1999. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. Introductory Section xvii r~ In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. The ~ report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Village of North Palm Beach has re- ceived aCertificate of Achievement for the last twelve consecutive years. We believe our current report con- forms to Certificate of Achievement Program requirements, and we are submitting it to GFOA to determine its F- j eligibility for another certificate. , I Acknowledgments ~- The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the Village Manager's and Finance Department's staffs. We would like to express our appreciation ~ to all members of both departments who assisted and contributed to its preparation. We thank the Mayor and Village Council for their interest and support in planning and conducting the financial operations of the Village in a responsible and progressive manner. , Respectfully submitted, I / • Dennis W. Kelly • Village Manager ` ~ ~ i Shaukat Khan ~ l ~ Finance Director J .~J i ~1 I Y.`v'iil entroductory section ~ ~ ~- ~r i~ ~~~~~~~~1~1~~ ~t~~c~~ i~~1 ~~~r ~r ~ ~ tiag-tiic~t~ rt~h~~ve~-s~~t ~>~r ~~~~~t+~~~~ tt~ F=ir1~.t~~~l ~~~_:]:~,rti;'i l: ]'~CxztiL:~'~~~ ' ~7~~c::rr1[7'~f'['d~` #r ~~fl<:Rk ~~9t`~?i' ~~~~;t}~.l~ttlt,~t`i t}~ (E~[~. t1n~+¢>,;!'~tt~kt~5 e~t~~ ~~,rrl,rl+:~.ci t ~~;i,~.3srcu"1 t5!`e~?;~ ri ~~,~k>ilU ~€T1~~{+~~~: r~~~r€~€~~?r~t ~(i:,~.i-'r17°; tl':~"lt a t:;i'~T`i'~~~I'~c=Tb~~L't<- ~lI'E~~ ~Il`3c~T3~7:1~:_ r~=.a,~~r~ ~~:~f~~~-.1 t1r_-'}~tr~~'~ t~~>~ IaS~tki~~t St~itijK><t'~~ i'1 i ,~~T~~~fik~i~.1 ~rr~~l.~rilll°i^ ~t~G~ ~~~1 t~i~tl. t~t5~rt`i~. ~ c. S'~~F,~ ~ ~ 1 .f ~Y~tr%`l~ ~ g_ ~ - ~~0~7[CifTfl7 r s ~l a~'ii~,?li ~ fi~'r1[ - ta~~it rj.t I~~~~t~~ ~~t~rt Introductory Section xix r~ r~ 1 This page intentionally left blank. ~l J J L~ ~1 nx i~iti vd'aA~tt~ii''y' v@~#i^v i ji ~J :>~- d n FINANCIAL SECTION s . z~: X i i i i i i 'i i i i i i i i i. i ~as,I~iaz~~o. Certified Public Accountants INDEPENDENT AUDIT®RS' REP®RT The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida We have audited the accompanying general purpose financial statements of The Village of North Palm Beach, Florida, as of and for the year ended September 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of The Village of North Palm Beach, Florida's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards ap- plicable 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 rea- sonable assurance about whether the general purpose financial statements are free of material misstate- ment. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of The Village of North Palm Beach, Florida, at September 30, 2000, and the results of its operations and the cash flows of its proprietary fund for the year then ended in confor- mity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated January 10, 2001, on our consideration of The Village of North Palm Beach, Florida's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The information identified as Combining, Individual Fund, and Account Group Statements and Supplementary Schedules in the table of contents is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of The Village of North Palm Beach, Florida. Such additional information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all ma- terial respects in relation to the general purpose financial statements taken as a whole. 1601 Belvedere Road Suite 200, East West Palm Beach, FT 33406-1595 (561) 686-1551 Fax: (561)471-1210 Financial Section 3 r~ The information shown in the statistical section listed in the table of contents has not been subjected to auditing procedures sufficient to enable us to express an opinion as to the fairness of all information in- cluded therein and, accordingly, we do not express an opinion thereon. • r~ ~ d C~. Haas, Diaz & Co. Certified Public Accountants January 10, 2001 r~ ~1 ~l ~l ~1 ~l ~.1 4 i=financial ~ecfion ~ This page intentionally left blank. Financial Section 5 r 7 THE VILLAGE ®F N®RTH PALM EEACH, FL®RI®A r 1 Combined Balance Sheet -All Fund Types and Recount Groups ) September 30, 2000 (With comparative totals for September 30, 1999) ~ j Governmental Proprietary J Fund Types Fund Type ~j Capital General Projects Enterprise Assets and Other Debits ~ 1 Assets: 1 Cash and cash equivalents 3,417,704 $ 173,005 $ 266,731 Investments - - - f Restricted cash 55,108 - - Receivables: State shared revenues 84,057 - - " l Utility taxes 121,637 - - J Accounts 128,050 - 53,899 Special assessments 12;867 - - Interest Inventories 28,532 - 30,128 Prepaid items 899 - - Deposits 2,000 - - Land, buildings and equipment - - 3,414,000 Other Debits: i 1 Amount to be provided for retirement of J general long-term debt - - - Total assets and other debits $ 3,850,854 $ 173,005 $ 3,764,758 1 ~l ~J ~J ri r 6 Financiai Section l ~ Fiduciary Totals Fund Types Account Groups (Memorandum Only) Trust General General & Fixed Long-Term Agency Assets Debt 2000 1999 $ 1,137,022 $ - $ - $ 4,994,462 $ 6,186,254 12,078,005 - - 12,078,005 11,076,537 _ - - 55,108 33,366 _ - - 84,057 21,804 _ - - 121,637 119,332 12,704 - - 194,653 281,232 _ - - 12,867 15,227 35,951 - - 35,951 42,746 _ - - 58,660 46,236 _ - - 899 427 _ - - 2,000 2,000 - 15,038,422 - 18,452,422 17,808,038 _ - 6,355,269 6,355,269 6,714,664 $ 13,263,682 $ 15,038,422 $ 6,355,269 $ 42,445,990 $ 42,347,863 Continued on the following page... Financial Section 7 THE VILLAGE Of NORTH PALM BEACH, FLORIDA r 1 Combined Balance Sheet -All Fund Types and Account Groups (Continued) 1 September 30, 2000 (With comparative totals for September 30, 1999) Governmental Proprietary Fund Types Fund Type Capital General Projects Enterprise Liabilities, Equity and Other Credits Liabilities: Accounts payable and other liabilities $ 331,302 $ - $ 110,111 Compensated absences payable - - 94,176 Deferred revenue 24,732 - 143,933 Miscellaneous deposits 5,361 - 7,000 Loans payable - - 969,586 ~ l Due to other agencies - - - ) ~ Capital leases payable - - - Totalliabilities 361,395 - 1,324,806 Equity and Other Credits: Investment in general fixed assets - - - Contributed capital - - 152,438 Retained earnings: Reserved - - 67,580 Unreserved - - 2,219,934 Fund balances: Reserved for inventories 28,532 - - Reserved for prepaid items and deposits 2,899 - - Reserved for restricted assets 55,108 - - Reserved for encumbrances 324,594 - - Reserved for special projects - - - l Reserved for employees' pension benefits - - - lI Unreserved: Designated for subsequent year 1,005,415 - - Undesignated 2,072,911 173,005 - ` J Total equity and other credits 3,489,459 173,005 2,439,952 J Total liabilities, equity and other credits ~ 3,85u,u54 ~ 173,uu5 $ 3,164,7525 ` 1 See accompanying notes to financial statements. 1J ~l ~J r~ if 1'Ir1arlCial J@ct1On i L Fiduciary Totals Fund Types Account Groups (Memorandum Only) Trust General General & Fixed Long-Term Agency Assets Debt 2000 1999 $ 6,437 $ - $ - $ 447,850 $ 792,303 _ - 575,567 669,743 647,582 _ - - 168,665 230,906 _ - - 12,361 5,091 - - 5,481,150 6,450,736 7,033,329 298,174 - - 298,174 - _ - 298,552 298,552 360,592 304,611 - 6,355,269 8,346,081 9,069,803 - 15,038,422 - 15,038,422 14,887,626 _ - - 152,438 152,438 _ - - 67,580 228,514 _ - - 2,219,934 2,414,023 _ - - 28,532 28,811 _ _ - 2,899 2,427 - - 55,108 33,366 _ - - 324,594 306,166 _ _ - - 195,640 12,959,071 - - 12,959,071 11,683,169 _ - - 1,005,415 1,241,834 _ - - 2,245,916 2,104,046 12,959,071 15,038,422 - 34,099,909 33,278,060 $ 13,263,682 $ 15,038,422 $ 6,355,269 $ 42,445,990 $ 42,347,863 Financial Section 9 THE VILLAGE OF NORTH PALM BEACH, FLORIDA r i Combined Statement of Revenues, Expenditures and Changes in Fund Balances J All Governmental Fund Types Year Ended September 30, 2000 (With comparative totals for the year ended September 30, 1999) Governmental Totals Fund Types (Memorandum Only) Capital General Projects 2000 1999 Revenues: Taxes $ 6,794,249 $ - $ 6,794,249 $ 6,528,207 Licenses and permits 756,419 - 756,419 543,650 Intergovernmental 1,273,110 - 1,273,110 1,284,244 Charges for services 437,811 - 437,811 357,336 Fines and forfeitures 149,690 - 149,690 119,185 Interest 290,413 10,658 301,071 319,050 ~ j Miscellaneous 139,419 - 139,419 97,365 I Total revenues 9,841,111 10,658 9,851,769 9,249,037 Expenditures: Current: General government 1,211,403 - 1,211,403 1,172,478 Public safety ~ 3,191,976 - 3,191,976 2,944,489 Public services 2,806,141 - 2,806,141 2,491,317 Leisure services 991,603 - 991,603 856,945 Other 442,494 - 442,494 569,038 `- Capital outlay 727,258 81,583 808,841 3,486,439 Debt service: Principal 488,276 - 488,276 413,520 Interest and fiscal charges 277,021 - 277,021 249,542 Total expenditures 10,136,172 81,583 10,217,755 12,183,768 l Excess (deficiency) of revenues - over (under) expenditures (295,061) (70,925) (365,986) (2,934,731) J Other financing sources (uses): i Loan proceeds 112,000 - 112,000 600,000 Sale of surplus equipment 4,160 - 4,160 3,881 "transfers in - 4$,290 48,290 420,000 Transfers out (48,290) - (48,290) (420,000) Total other financing sources (uses) 67,870 48,290 116,160 603,881 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses (227,191) (22,635) (249,826) (2,330,850) ` Fund balances, beginning of year 3,716,650 195,640 3,912,290 6,243,140 Fund balances, end of year $ 3,489,459 $ 173,005 $ 3,662,464 $ 3,912,290 See accomr~anying notes to"financial statements. ~ ra i 10 rsinai~~i~i ~ea:tioi~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Combined Statement of Revenues and Expenditures -Budget and Actual (Budgetary Basis) -General Fund Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Revenues: Taxes $ 6,535,763 $ 6,794,249 $ 258,486 Licenses and permits 440,010 756,419 316,409 Intergovernmental 1,104,731 1,273,110 168,379 Charges for services 348,360 437,811 89,451 Fines and forfeitures 101,600 149,690 48,090 Interest 180,000 290,413 110,413 Miscellaneous 80,543 139,419 58,876 Total revenues 8,791,007 9,841,111 1,050,104 Expenditures: Current: General government 1,314,625 1,211,071 103,554 Public safety 3,370,433 3,193,260 177,173 Public services 2,930,771 2,782,234 148,537 Leisure services 1,084,595 996,906 87,689 Other 413,885 439,994 (26,109) Capital outlay 698,064 765,838 (67,774) Debt service: Principal 474,780 488,276 (13,496) Interest and fiscal charges 284,153 277,021 7,132 Total expenditures 10,571,306 10,154,600 416,706 Excess (deficiency) of revenues over (under) expenditures (1,780,299) (313,489) 1,466,810 Other financing sources (uses): Loan proceeds - 112,000 112,000 Sale of surplus equipment 5,000 4,160 (840) Transfers out - (48,290) (48,290) Total other financing sources (uses) 5,000 67,870 62,870 Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses $ (1,775,299) $ (245,619) $ 1,529,680 See accompanying notes to financial statements. Financial Section 11 THE VILLAGE OF NORTH PALM BEACH, FLORIDA Statement of Revenues, Expenses and Changes in Retained Earnings Ail Proprietary Fund Types Year Ended September 30, 2000 Enterprise Fund Revenues: r~ Charges for services $ 2,242,678 Miscellaneous 47,672 _ Total operating revenues 2,290,350 Expenses: Sports activities 1,694,262 ' Clubhouse 278,897 Administrative and general 358,066 Depreciation 297,545 ~ 1 Total operating expenses 2,628,770 JI Operating loss (338,420) Nonoperating revenues (expenses): Grant revenue 17,120 Interest income 45,619 ` i Interest expense (48,714) J Loss on disposal of fixed assets (30,628) Total nonoperating revenues (expenses) (16,603) Net loss (355,023) Retained earnings, beginning of year 2,642,537 Retained earnings, end of year $ 2,287,514 Retained earnings end of year. L Reserved $ 67,580 Unreserved 2,219,934 $ 2,287,514 ,~e2 accampanying nat2~ to fi:~a;zcial ~tat2,~2nt~. ~1 ~J i r~ i~ Finan~ia7 ~e~iion ~ i i THE VILLAGE OF NORTH PALM BEACH, FLORIDA Combined Statement of Changes in Net Assets All Pension Trust Funds Year Ended September 30, 2000 Pension Trust Funds Additions: Contributions: Employer $ 425,811 State of Florida 78,246 Plan member 81,076 Total contributions 585,133 Investment income: Interest 192,334 Dividends 271,137 Net appreciation in fair value of investments 806,172 Net investment income 1,269,643 Total additions 1,854,776 Deductions: Administration 112,080 Benefits 466,794 Total deductions 578,874 Net increase 1,275,902 Net assets held in trust for pension benefits, beginning of year 11,683,169 Net assets held intrust for pension benefits, end of year $ 12,959,071 See accompanying notes to~nancial statements. Financial Section 13 r7 THE VILLACaE OF NORTH PALM BEACH, FLORIDA ` i Statement of Cash Flows 1 All Proprietary Fund Types Year Ended September 30, 2000 Enterprise Fund Cash flows from operating activities: r Cash received from customers $ 2,264,401 Cash payments to suppliers for goods and services (1,177,022) Cash payments to employees for services (1,279,301) ~ ~ . Other operating cash receipts 54,632 Net cash used in operating activities (137,290) Cash flows from capital and related financing activities: , ~ Loan proceeds 30,000 Grant revenues 17,120 Principal repayments (298,357) Interest paid on debt (48,714) Acquisition of capital assets {821,760) Net cash provided by capital and related financing activities (1,121,711) Cash flows from investing activities: Interest on investments 45,619 ~ . Net decrease in cash and cash equivalents (1,213,382) Cash and cash equivalents, beginning of year 1,480,113 J Cash and cash equivalents, end of year $ 266,731 1 Reconciliation of operating income to net cash used in operating activities: J Operating loss $ (338,420) Adjustments to reconcile operating loss to net ` cash used in operating activities: Depreciation expense 297,545 Increase in accounts receivable (8,576) ` Increase in inventories (12,703) Decrease in accounts payable (117,675) Increase in deferred revenue 30,299 Increase in deposits 6,960 Increase in compensated absences 5,280 Total adjustments 201,130 l Net cash used in operating activities $ (137,290) ~ l Noncash capital and financing activities: Book value of assets disposed $ 30,628 See accompanying notes to financial statements. i ~1 ' ii ~7 ~ 54 rinanciai erection j THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 (1) THE REPORTING ENTITY The Village of North Palm Beach, Florida ("the Village") was incorporated in 1956 pursuant to Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately 1,900 acres of land and 1,200 acres of lakes, ca- nals and lagoons. The Village's nonseasonal population consists of approximately 12,000 residents which in- creases during the winter months to approximately 18,000 people. The Village operates under the Council- Manager form of government and provides the following services to its residents: public safety, planning and zoning, sanitation, library, parks, marinas and a country club. The Village Council (the "Council") is responsi- ble for legislative and fiscal control of the Village. As required by generally accepted accounting principles, these general purpose financial statements present the government and its component units. Component. units are legally separate entities for which the primary gov- ernment is considered to be financially accountable and for which the nature and significance of their relation- ship with the primary government are such that exclusion would cause the Village's combined financial state- ments to be misleading or incomplete. The primary government is considered financially accountable if it ap- points avoting majority of an organization's governing body and imposes its will on that organization. The primary government may also be financially accountable if an organization is fiscally dependent on the primary government, regardless of the authority of the organization's governing board. Based on the application of the criteria set forth by the Governmental Accounting Standards Board ("GASB"), management has determined that no component units exist which would require inclusion in this report. Fur- ther, the Village is not aware of any entity that would consider the Village to be a component unit. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accounts of the Village are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets and other debits, liabilities, fund equity and other credits, revenues, and expen- ditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are con- trolled. The various funds and account groups are reported by generic classification within the financial state- ments as follows: Governmental Fund Types General Fund -used to account for all financial resources applicable to the general operations of the Village government except those required to be accounted for in another fund. Capital Projects Fund -used to account for resources principally provided by general long-term debt and used for the acquisition or construction of major capital facilities. other than those financed by proprietary funds. Proprietary Fund Type Enterprise Fund -used to account for operations that provide services on a user charge basis to the public and for activities where the periodic measurement of net income is deemed appropriate for capital maintenance, pub- lic policy, management control, accountability or other purposes. Proprietary fund activities and basis of ac- Financial Section ~5 THE VILLAGE OF NORTH PALM BEACH, FLORIDA ~ 1 Notes to financial Statements J September 30, 2000 counting are similar to those often found in the private sector. The Village's sole proprietary activity is the op- r, eration of a golf and country club. Fiduciary Fund Types r Trust Funds -used to account for assets held by the Village in a trustee capacity. The pension trust funds are accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. Agency Funds -used to account for assets held by the Village pursuant to an agreement with WCI Communi- , ties, Inc. and the Northlake Boulevard Task Force. The Village retains no equity interest in these funds. Account Groups Account groups are not funds since they do not reflect available financial resources and related liabilities. In- stead, they are used to establish accounting control and accountability for the Village's general fixed assets and general long-term debt. The following is a description of the account groups of the Village. ~ l General Fixed Assets Account Group -used to maintain control and cost information for all fixed assets other J than those accounted for in the proprietary fund. , 1 General Long-Term Debt Account Group -used to record outstanding long-term debt other than debt recorded JI in the proprietary fund. Totals (Memorandum Only) Amounts in the "Totals (Memorandum Only)" columns in the combined financial statements represent a sum- mation of the combined financial statement line items of the fund types and account groups and are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of opera- tions, or cash flows in conformity with generally accepted accounting principles. Neither is such data compara- ble to a consolidation. Interfund eliminations have not been made in the aggregation of this data. ` Basis of Accounting and Measurement Focus Basis of Accounting L Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are ` recognized in the period in which they become susceptible to accrual, i.e., when they become measurable and available to pay liabilities of the current period. Ad valorem taxes and charges for services are susceptible to accrual when collected in the current year or within 60 days subsequent to year-end, provided that amounts re- ceived pertain to billings through the fiscal year just ended. Intergovernmental revenues, which include state revenue sharing allotments, local government one-half cent sales tax, and county shared revenue, among other ~- sources, are recorded in accordance with their legal or contractual requirements if collected in the current period i or within 60 days after year-end. Interest is recorded when earned. Licenses and permits, fines and forfeitures i j and miscellaneous revenues are recorded as revenues when received in cash because they are generally not ,_J II measurable until actually received. Occupational license revenues collected m advance of penods to which they relate are recorded as deferred revenues. ~ ~ l ~i .a Sv FinaFicial jecticri THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 Expenditures are generally recognized under the modified accrual basis of accounting when the related fund li- ability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which is recognized when due. The proprietary fund and pension trust funds are accounted for using the accrual basis of accounting. Their revenues are recognized when earned, and their expenses are recognized when they are incurred. Membership fees of the proprietary fund that are collected in advance of the period to which they apply are recorded as de- ferred revenue. Measurement Focus All government funds are accounted for on a flow of current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their re- ported fund balance (net current assets) is considered a measure of "available spendable resources". Govern- mental fund operating statements present increases (revenues and other financing sources) and decreases (ex- penditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. The enterprise fund and the pension trust funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. The enterprise fund and the pension trust funds' operating statements pre- sent increases (revenues) and decreases (expenses) in net total assets. The Village has elected not to apply Financial Accounting Standards Board (FASB) Statements and Interpreta- tions issued after November 30, 1989, as permitted by Statement No. 20 of GASB, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting. Budgetary Accounting State of Florida statutes require that all municipal governments establish budgetary systems and approve bal- anced annual operating budgets. The Council annually adopts an operating budget and appropriates funds for the general fund. The procedures for establishing budgetary data are as follows: In July of each year, the Village Manager submits a proposed operating budget to the Council for the next fiscal year commencing the following October 1st. The proposed budget includes expenditures and the means of financing them. During the third week of July, the Council holds public meetings to obtain taxpayer comments. Upon completion of the public hearings and prior to October 1, a final operating budget is legally enacted through the passage of an ordinance. Estimated beginning fund balances are considered in the budgetary process. The ordinance approved by the Council which adopted the budget for the fiscal year ended September 30, 2000, allows budget transfers based on the following regulations: Appropriations within a department shall not be transferred in amounts of $2,500 or more without the ap- proval of the Council. Financial Section 17 THE VILLAGE OF MORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2400 Appropriations within a department less than $2,500 shall not be transferred without the approval of the Vil- ( , lage Manager. l Unencumbered appropriations lapse at fiscal year end. Encumbrances at year end are carried forward to the next r year. During the year, several supplementary appropriations were necessary. For the year ended September 30, J 2000, several expenditures exceeded appropriations in the general fund. They are as follows: Expenditures for health insurance exceeded appropriations in Reserve -group health due to an unantici- r J gated payment to the third party administrator for benefit claims. i Expenditures for legal services by the Village attorney exceeded appropriations due to ongoing liability and r J ; code enforcement issues, labor negotiations, and special legal services. Expenditures for capital outlay -automotive in Code Enforcement, Facilities Maintenance, Solid Waste and r Street Maintenance exceeded appropriations due to the accounting treatment for capital leases in the initial year. i Expenditures for Outside Services Pay in Law Enforcement is not a budgeted item. These costs are incurred J as a result of contracts with businesses in the Village for additional police protection. This amount is offset by fees charged for those services. Expenditures for debt service exceeded appropriations due to the reclassification of payments for principal and interest on capital leases from departmental expenditures to general debt service expenditures. ` 1 The budget for the general fund is adopted on an accounting basis that differs from generally accepted account- . I ing principles (GAAP) because they include open encumbrances as expenditures (See Note 8). The Village also l adopts anon-appropriated operating budget for the enterprise fund substantially on a basis consistent with gen- J erally accepted accounting principles, except that depreciation is not budgeted. Cash and Cash Equivalents All short-term investments that are highly liquid are considered to be cash equivalents. Cash equivalents are readily convertible to a known amount of cash, and at the day of purchase, have a maturity date no longer than three months. ) ,Investments are reported at fair value, which is determined by using various third party pricing sources. The Local Government Surplus Funds Trust, administered by the Florida State Board of Administration, is a " 2A-7 like" pool and, thus, these investments are valued using the pooled share price. Restricted Assets Cash and cash equivalents are restricted for the following purposes: ~OOC 1~5~ Law enforcement education $ 9,825 $ 8,738 Public safety 15,244 - Library 26,039 20,628 Recreation facilities 4,000 4,000 Total restricted assets $ 55,108 $ 33,366 iQ Fir:ancia! ~ecti~n ~ , THE VILLAGE OF NORTH PALM REACH, FLORIDA Notes to Financial Statements September 30, 2000 Special Assessments Receivable/Deferred Revenue Special assessments receivable recorded in the general fund represent the aggregate balance of assessments lev- ied by the Village to repay the costs of improvements. These assessments are collected in annual installments together with interest and collection costs. The Village reports deferred revenue in an amount equal to the special assessments receivable since this revenue will be collected in future years. Inventories Inventories are valued at cost determined on a first-in, first-out basis. Inventories in the general fund consist of expendable supplies held for consumption.. The initial cost is recorded as an asset at the time the individual in- ventory items are purchased and are charged against operations in the period when used. Fixed Assets Land, buildings and equipment acquired or constructed for genera] governmental purposes are recorded as ex- penditures (i.e., Capital Outlay) in the fund making the acquisition and capitalized at cost in the general fixed assets account group. Certain general fixed assets acquired prior to 1986 have been capitalized at their esti- mated historical cost. Donated assets are capitalized in the general fixed assets account group at their fair mar- ket value at the time received. Assets in the general fixed assets account group are not depreciated. Public domain ("infrastructure") general fixed assets consisting of streets, sidewalks, drainage systems, curbs, and lighting systems are not capitalized by the Village since they are immovable and of value only to the Vil- lage. Fixed assets, including infrastructure type items, of the enterprise fund are capitalized and depreciated in that fund. Additionally, net interest cost is capitalized on projects during the construction period in accordance with Statements of Financial Accounting Standards No. 34. Depreciation is computed on the straight-line method over their estimated useful lives. The estimated useful lives are as follows: Buildings and improvements 30 years Improvements other than buildings 10 years Golf course improvements 15 years Equipment 3-10 years Compensated Absences The Village's employees are granted compensated absence pay for vacation and sick leave in varying amounts based on length of service. Unused compensated absences are payable upon separation from service. Vacation is accrued as a liability when the employee earns benefits. This means that the employee has rendered services that give rise to a vacation liability and it is probable that the Village will compensate the employee in some manner, e.g., in cash or paid time-off, now or upon termination or retirement. The Village uses the vesting method in accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for em- ployees who are eligible to receive termination payments upon separation. Along-term liability of $575,567 is recorded in the general long-term debt account group for general fund employees and $94,176 in the enterprise fund for country club employees. Fund Balance Reserves Reserves are used to indicate that a portion of the fund balance is not appropriable for expenditure or is legally segregated for a specific future use. Usage of reserves has been limited to the following: Financial Section 19 THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 Reserved for inventories, prepaid items, and deposits -Indicates that a portion of fund balance is segregated since these items do not represent "available spendable resources." Reserved for restricted assets -Restricted for expenditures related solely to law enforcement, library and r recreation facilities. Reserved for encumbrances -Encumbrance accounting, under which purchase orders, contracts, and other ! 1 commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable 1 appropriation, is employed as an extension of formal budgetary integration in the general fund. Open en- cumbrances at year end are reported as reservations of fund balance. Encumbrances do not constitute ex- penditures or liabilities. Reserved for employees'. pension benefits -Restricted for payment of retirement benefits. Designation of a portion of the fund balance was established to indicate tentative plans for financial resource utilization related to future expenses. Contributed Capital Contributed capital is recorded in proprietary funds that have received capital grants or contributions from de- velopers, customers or other funds. Retained Earnings Reserves Retained earnings of the enterprise fund reflects amounts that are reserved for expenses related to the assessment ` J and rehabilitation of the contamination site resulting from a leak in the underground gas facilities ($32,866) and J the acquisition of capital assets ($34,714). Unreserved retained earnings represents the remainder of the Vil- lage's equity in the cumulative earnings of the enterprise fund. l , Interfund Transactions l During the course of normal operations, it is necessary for the Village to enter into transactions among its vari- ous funds. These transactions consist of one or more of the following types: Reimbursements to a fund, which are generally reflected through the allocation of pooled cash accounts, for i expenditures or expenses initially made from it that are properly applicable to another fund. Transfers of residual equity balances from one fund to another fund. Operating transfers in and out, as appropriate, for all other interfund transactions, which are shown as other financing sources or uses. All other outstanding balances between funds are reported as "due to/from other funds." Property Taxes Under Florida law, the assessment of all properties and the collection of all county, municipal and school board property taxes are consolidated in the offices of the County Property Appraiser and County Tax Collector, re- spectively. All property is reassessed according to its fair market value on January 1 of each year and each as- sessment roll is submitted to the State Department of Revenue for review to determine if the assessment rolls meet all of the appropriate requirements of State law. The assessed value of property within the corporate limits of the Village at January 1, 1999, upon which the 1999-00 levy was based, was approximately $804 million. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills. ~L Financia! Rec#6or. ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 The tax levy of the Village is established by the Council prior to October 1 of each year during the budget pro- cess. The Palm Beach County Property Appraiser incorporates the Village's millage into the total tax levy, which includes the County, County School Board, and Special District tax requirements. The millage rate as- sessed by the Village for the year ended September 30, 2000, was 5.6000 ($5.60 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. Delin- quent taxes on real property bear interest at 18% per year. On or prior to June 1 following the tax year, certifi- cates are offered for sale for all delinquent taxes on real property. After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer. Application for a tax deed on any unredeemed tax certificates may be made by the certificate holder after a period of two years. Unsold certificates are held by the County. Delinquent taxes on personal property bear interest at 18% per year until the tax is satisfied either by seizure and sale of the property or by the five-year statute of limitations. At September 30, unpaid delinquent taxes are not material and have not been recorded by the Village. Pension Plans The Village sponsors and administers two pension plans covering substantially all full-time employees. Annual costs of the pension plans are actuarially computed, and the Village funds annual pension costs as incurred. (3) DEPOSITS AND INVESTMENTS All of the Village's deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chap- ter 280, "Florida Security for Public Deposits Act." Under the Act, every qualified public depository shall de- posit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The Treasurer, by rule, shall establish minimum required pledging levels. The pledging level may range from 25% to 125% of the average monthly balance of public deposits, depending upon the depository's financial condition and estab- lishment period. All collateral must be deposited with an approved financial institution. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral, and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. Deposits Deposits include checking accounts and petty cash. At year end, the carrying amount of the Village's deposits was $1,655 and the bank balance was $61,927. The entire bank balance was covered by federal depository in- surance. Investments The Village is authorized to invest its funds in the Local Government Surplus Funds Trust Fund or any inter- governmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in Sec- tion 163.01 of the Florida Statutes; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; saving accounts in state-certified qualified public depositories, as defined in Section 280.02 of the Florida Statutes; certificates of deposit in state- certified qualified public depositories, as defined in Section 280.02 of the Florida Statutes; direct obligations of the U.S. Treasury; and federal agencies and instrumentalities. Investments of the pension trust funds can consist of every kind of property, real, personal, or mixed, and every kind of investment, specifically including bonds, debentures and other corporate obligations, and stocks, preferred or common. Financial Section 21 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA r Notes to Fir~anoiel Ststemer~ts September 30, 2000 The Village's investments are categorized to give an indication of the level of risk assumed by the entity at year end. Category 1 includes investments that are insured or registered or for which the securities are held by the Village or its agent in the Village's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counter-party's trust department or agent in the Village's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counter-party, or by its trust department or agent but not in the entity's name. Investments in the State Treasurer's Investment Pool and mutual funds are not re wired to be cate orized, since q g the investments are not evidenced by securities that exist in physical or book entry form. The following matrix presents the components of the Village's cash and cash equivalents and investments at September 30, 2000. The investment risk categories are indicated in the last column. Deposit risks are not in- cluded in the table. - j Reported Fair J Unrestricted Restricted Amount Value Category Cash and cash equivalents: Deposits $ 1,655 $ - $ 1,655 $ 1,655 - Overnight repurchase agreement 834,562 - 834,562 834,562 3 Money market funds 451,881 - 451,881 451,881. 2 Investment in State Treasurer's Investment Pool 3,706,364 55,108 3,761,472 3,761,472 - Total cash and cash equivalents 4,994,462 55,108 5,049,570 5,049,570 Investments: U.S. government securities 1,237,245 - 1,237,245 1,237,245 2 Corporate bonds 956,594 - 956,594 956,594 2 - - Convnon stock 3,122,702 - 3,122,702 3,122,702 2 Retirement plan mutual funds 6,761.,464 - 6,761,464 6,761,464 - 1 Total investments 12,078,005 - 12,078,005 12,078,005 1 Total cash and cash equiva- ` tents and investments $ 17,072,467 $ 55,108 $ 17,127,575 $ 17,127,575 The pension trust funds own all of the investments in Category 2. J (4) LAND, BUILDINGS, AND EQUIPMENT General Fixed Assets The following is a summary of changes in the general fixed assets account group during the fiscal year. Balance Balance October 1, September 30, 1999 Additions Deletions 2000 Land $ 2,055,889 $ - $ - $ 2,055,889 Buildings and improvements 8,601,321 8,981 10,519 8,599,783 Equipment 3,439,629 627,834 523,710 3,543,753 Library books and equipment 790,787 82,680 34,470 838,997 Total $14,887,626 $ 719,495 $ 568,699 $ 15,038,422 ~ z2 Financial section ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 Proprietary Fund Fixed Assets A summary of the proprietary fund land, buildings and equipment at September 30, 2000, is as follows: Land $ 1,051,311 Building and improvements 1,805,233 Improvements other than building 793,980 Furniture, fixtures and equipment 771,863 Golf course improvements 1,290,765 5,713,152 Less accumulated depreciation (2,299,152) $ 3,414,000 (5) LONG-TERM DEBT Loans Payable Revenue Note . The Village Council adopted Resolution No. 32-96 authorizing the execution of a loan agreement with First Un- ion National Bank for the purpose of financing certain projects at the Country club in the amount of $300,000. The loan is secured by a priority lien on utility tax revenues. Principal and interest payments are due semi- annually from December 1, 1996, through June 1, 2001. The interest rate on the loan is 4.16%. Annual debt service requirements to maturity, which are payable by"the proprietary fund, are as follows: Year Ending September 30, Amount 2001 $ 64,685 Total debt service requirements 64,685 Less: Amount representing interest (1,307) $ 63,378 Promissory Note The Village Council adopted Resolution No. 24-99 authorizing the execution of a loan agreement with Fidelity Federal Savings for the purpose of financing the renovation of the Village's Country club restaurant in the amount of $800,000. The loan is secured by franchise fees and public service taxes of the Village. Principal and interest payments are due monthly, commencing June 18, 2000, with a final maturity date of May 18, 2004. The interest rate on the loan is 3.99%. Annual debt service requirements to maturity, which are payable by the proprietary fund, are as follows: Year Ending September 30, Amount 2001 $ 177,030 2002 177,030 2003 177,030 2004 115,660 Total debt service requirements 646,750 Less: Amount representing interest (46,953) $ X99,797 Financial Section 23 r THE VILLAGE OF NORTH PALM EEACH, FLORIDA ` 1 Notes to ~inanciai Statements J September 30, 2000 Promissory Note r The Village Council adopted Resolution No. 18-99 authorizing the execution of a loan agreement with Fidelity Federal Savings for the purpose of financing various capital expenditures in the amount of $600,000. The loan is secured by franchise fees and public service taxes of the Village. Principal and interest payments are due monthly, commencing on April 16, 2000, with a final maturity date of March 16, 2004. The interest rate on the loan is 3.99%. Annual debt service requirements to maturity, which are payable by the general fund, are as fol- lows: Year Ending September 30, Amount 2001 $ 132,774 2002 132,774 2003 132,774 2004 66,387 Total debt service requirements 464,709 Less: Amount representing interest (32,061) $ 432,648 Promissory Note ~ ` J The Village Council adopted Resolution No. 8-97 authorizing the issuance of a note with First Union National Bank in the principal amount of $6,560,000 to finance the acquisition, construction, equipping, and improving of a public safety building, a community center, and a recreation building. A portion of the proceeds was also used to refinance an existing loan incurred to make improvements to the country club. J The promissory note is secured by franchise fees and public service taxes of the Village. Principal payments of - 1 $190,000 are due semi-annually on January 1 and August 1, commencing on August 1, 1997. The interest rate J is at the LIBOR Rate which is defined as 75% of the rate of interest published as one-month LIBOR on the first day of each month. The effective rate at September 30, 2000, was 4.97% and this approximates the rate that was used to calculate the debt service requirements to maturity. A portion of the promissory note ($560,000) is reported in the proprietary fund in an amount equal to the pro- ceeds used to refinance an existing country club obligation. The remainder of the promissory note ($6,000,000) is recorded in the general long-term debt account group. Annual debt service requirements to maturity are as follows: General Year Ending ~ Proprietary Long-Term September 30, Fund Debt ` i 2001 $ 92,924 $ 542,316 J 2002 88,947 527,405 2003 84,971 512,493 2004 40,994 497,581 2005 - 482,670 Thereafter - 4,478,914 Total debt service requirements 307,836 7,041,379 Less: Amount representing interest (27,836) (2,091,379) $ 280,000 $ 4,950,000 ~ ~ 24 Financlai S@~tifiFi ~ r~ t__~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 Promissory Note The Village Council adopted Resolution No. 3-00 authorizing the execution of a loan agreement with Wachovia Bank for the purpose of financing the lease-purchase of eight automobiles. A portion of the proceeds was also used to finance the purchase of equipment for the country club restaurant. The loan is unsecured. Principal and interest payments are due monthly, commencing on March 1, 2000, with a final maturity date of February 1, 2005. The interest rate on the loan is 4.33%. A portion of the promissory note ($30,000) is reported in the proprietary fund in an amount equal to the pro- ceeds used to finance the purchase of equipment. The remainder of the promissory note ($112,000) is recorded in the general long-term debt- account group. Annual debt service requirements to maturity are as follows: General Year Ending Proprietary Long-Term September 30, Fund Debt 2001 $ 6,659 $ 25,050 2002 6,659 25,050 2003 6,659 25,050 2004 6,659 25,050 2005 2,219 8,349 Total debt service requirements 28,855 108,549 Less: Amount representing interest (2,444) (10,047) $ 26,411 $ 98,502 Capital Leases The Village entered into two lease agreements with Bank of America as lessee for financing the acquisition of two EMS vehicles and a fire truck. Both lease agreements qualify as capital leases for accounting purposes and therefore have been recorded at the present value of the future minimum lease payments as of the date of incep- tion. Lease payments will be made from the general fund. The following is a schedule of the future minimum lease payments under these capital leases. Year Ending September 30, Amount 2001 $ 68,081 2002 56,232 2003 56,232 2004 56,232 2005 56,232 Thereafter 56,232 Total debt service requirements 349,241 Less: Amount representing interest (50,689) Present value of future minimum lease payments $ 298,552. Financial Section 25 -~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA r l Notes to Financial Statements J September 30, 2000 Changes in tong-Term Liabilities r During the year ended September 30, 2000, the following changes occurred in liabilities reported in the general long-term debt account: Balance Balance October 1, September 30, 1999 Additions Deletions 2000 r 1 i Promissory notes $ 5,795,386 $ 112,000 $ 426,236 $ 5,481,150 ~ Compensated absences 558,686 16,881 - 575,567 ~ j Capital leases 360,592 - 62,040 298,552 Total $ 6,714,664 $ 128,881 $ 488,276 $ 6,355,269 (6) RISK MANAGEMENT The Village currently reports all of its risk management activities in the general fund. Claims expenditures and ` liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. Employee Benefits Group The Village is self insured to provide group medical coverage. A third party administers the group medical cov- erage for the Village. The Village funds its own losses based on actual claims. A stop loss insurance contract 1 executed with an insurance carrier covers individual claims in excess of $35,000 per plan year. There were no J significant changes in insurance coverage from the prior year and the amount of settlements did not exceed in- surance coverage for the last three years. The liability for unpaid claims is estimated using an industry average that is based on actual claims paid. As of September 30, 2000, the Village recorded a liability for its employee benefit plan in the amount of $128,296, ` because Village claims exceeded contributions for the year. Changes in the claims liability since September 30, 1998, are as follows: Claims and ` Year Ended Claims Liability Change in Claim Claims Liability September 30, Beg_ inning_ of Year Estimates Payments End of Year 1998 $ - $ 619,596. $ (540,570) $ 79,026 1999 79 026 1,009,668 925,957 162,737 ` ( ) 2000 162,737 817,517 (851,958) 128,296 Property and Casualty Group The Village also participates in Southeast Risk Management Association (SERMA), aquasi-governmental agency created by an interlocal agreement, as authorized by Florida Statute 163. SERMA administers the prop- l erty and casualty coverage for the Village. The Village and other participating members pool their resources so ~ J j as to provide a comprehensive risk management program, including insurance coverage, whose cost is less than the cost of each municipality obtaining insurance separately. The members are subject to supplemental assess- ~ ,I ments in the event of deficiencies, except that to the extent that deficiencies result from a specific claim against L a member in excess of the reinsurance available, such deficiency is solely the responsibility of that member. SERMA reinsures for workers compensation and property claims in excess of $250,000. The Village is also covered by Florida Statutes under the Doctrine of Sovereign Immunity which effectively limits the amount of 20 Financial Sectivi~ j THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 liability of municipalities to individual claims of $100,000/$200,000 for all claims relating to the same incident. There were no changes in insurance coverage from the prior year and the amount of settlements did not exceed insurance coverage for the last three years. At September 30, 2000, there were no liabilities recorded for property and casualty based on a recent actuarial valuation which indicated that the reserve for incurred but not yet reported losses was adequately funded and no additional contributions are required. (7) PENSION PLANS The Village maintains the following two separate single employer defined benefit plans: Village of North Palm Beach Fire and Police Retirement Fund, covering fire fighters and police officers, and Village of North Palm Beach General Employees Retirement Fund, covering substantially all other full-time Village employees. Both plans are reported as pension trust funds and included as part of the Village's reporting entity. Neither plan is- sues astand-alone financial report. Additional information on these plans can be found beginning on page 33. Each plan has its own board which acts as plan administrator and trustee: Board of Trustees (for the Fire and Police Retirement Fund) and General Employees Retirement Board. Each plan's assets may only be used for the payment of benefits to the members and beneficiaries of the plan in accordance with the terms of each plan document. The costs of administering each plan are financed in the appropriate pension trust fund. The Florida Constitution requires local governments to make the actuarially determined contribution. The Flor- ida Division of Retirement reviews and approves each local government's actuarial report prior to its being ap- propriated for use for funding purposes. Additionally, the State collects two locally authorized insurance pre- mium surcharges (one for the Police Pension Plan on casualty insurance policies and one for the Fire Pension Plan on certain real and personal property insurance policies within the corporate limits) which can only be dis- tributed after the State has ascertained that the local government has met its actuarial funding requirement for the then most recently completed fiscal year. Investments are reported at fair value and are managed by third party money managers. The Village's inde- pendent custodians and individual money managers price each instrument using various third party pricing sources. The following investments represent concentrations of 5°Io or more of net plan assets in investments that are not issued or guaranteed by the U.S. government. General Employees Retirement Fund Mutual Funds: STI Classic Investment Grade Bond Fund $ 2,463,495 STI Classic Value Income Stock Fund 1,449,423 SunTrust U.S. Limited Capitalization Equity Fund 1,217,335 SunTrnst High-Grade Equity Income Fund 1,631,211 Fire and Police Retirement Fund No nongovernmental investments exceed 5% of net plan assets. The following schedule is derived from the respective actuarial reports and Village information for the two pen- sion plans as of October 1, 1999: Financial Section 27 r THE VILLAGE OF NORTH PALM BEACH, FLORIDA ~ l Notes to Financial statements J September 30, 2000 l . rl General Employees Fire and Police JI Accounting Policies and Plan Assets: ~ j Authority Village Ordinance Village Ordinance/State Statute ~ i Basis of Accounting Accrual Accrual 11 Asset Valuation: Reporting Fair Value Fair Value Actuarial Valuation 5-year smoothed market 5-year smoothed market Legal Reserves None None Long-Term Receivable None None Internal/Participant Loans None None r Membership and Plan Provisions: Members: . Active Participants 83 29 Retirees and Beneficiaries 14 4 Terminated Vested 32 7 1 Normal Retirement Benefits: Option 1 Option 2 J Retirement Age 65 60 55 ` l Years of Service (minimum) 5 5 9 JI Accrual - (years 1-20) 2.00% 2.25% 2.50% ' (over 20) 1% 1% - `- Maximum None None 60% Years to Vest 9 9 10 Contributions: ` 1 Actuarial Rate: ) Village 11.56% 1.71% State n/a 5.45% Participants: (Option 1) 0.00% 2.00% J (Option 2) 2.00% n/a Annual Pension Cost $ 294,902 $ 99,248 Contributions Made $ 372,744 $13],313 Actuarial Valuation: Frequency Annual Annual Latest Valuation 10/1/99 10/1/99 Basis for Contribution 10/1/99 10/1/99 Cost Method Frozen Entry Age Aggregate Amortization: Method Level percent n/a Period 30 years n/a Open/Closed Closed n/a Note: The aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities. 'i 1 ~ .t t8 Financial ~@ction ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 General Employees Fire and Police Assumptions: Investment Earnings (including inflation) 8.5% /year up to retirement, 5.25% thereafter 8.0% /year Salary Increases (including inflation) 5.5% /year 6.0% /year Inflation 4.0% /year 4.0% /year Mortality Rates 1983 Group Annuity 1983 Group Annuity Mortality Table Mortality Table Retirement Age: Eligible for early retirement 5% 5% Normal retirement date attained 60% 60% Four years after normal retirement date 40% 40% Fifth year after normal retirement date 100% 100% Turnover Age 25 18.8% 5.7% Age 30 11.2% 5.0% Age 35 6.3% 3.8% Age 40 4.8% 2.6% Age 45 3.4% 1.6% Age 50 2.4% 0.8% Age 55 0.5% - Post Retirement Benefits 3% for those who retired before 2/1/82 3% /year There have been no changes in benefits for either plan since the last actuarial valuation (October 1, 1998). There were changes in actuarial assumptions and methods for the General Employees Retirement Fund for the actuarial valuation dated October 1, 1999. The following changes were made: 1. The assumed rate of investment return has been changed from 8% to 8.5%. 2. The assumed rate of salary increase has been changed from 6% to 5.5%. 3. Employment termination rates have been revised based on the group's own experience over the last eight years. 4. The funding method has been changed from. the aggregate method to the frozen entry age method. A result of this change is that an unfunded actuarial liability has been established. This liability will be amortized over the next 30 years as a level percent of covered payroll. Financial Section 29 r~ THE VILLAG€ OF NORTH PALM BEACH, FLORIDA r Notes to Financial Statements September 30, 2000 Annual Pension Cost and Net Pension Obligation (Benefit): r The Village's annual pension cost and net pension obligation (benefit) for both plans for the current year were as f~ follows: General Employees Fire and Police Annual required contribution $ 292,866 $ 97,135 Interest on net pension benefit (4,775) (6,314) Adjustment to annual required contribution 6,811 8,427 ~ i Annual pension cost 294,902 99,248 JI Contributions made (372,744) (131,313) Increase in net pension benefit (77,842) (32,065) , Net pension benefit, beginning of year (56,181) (78,923) Net pension benefit, end of year $ (134,023) $ (1.10,988) ` ~ i Three-Year Trend Information Annual Percentage Net Pension Year Pension of APC Obligation , Ended Cost (APC) Contributed (Benefit) ` 1 General 9/30/98 $ 225,363 111.3% $ (44,588) l Employees 9/30/99 215,519 105.4% (56,181) 9/30/00 294,902 126.4% (134,023) Fire and Police 9/30/98 $ 119,058 144.5% $ (71,241) 9/30/99 184,196 104.2% (78,923) j 9/30/00 99,248 132.3% (110,988) (8) BUDGETARY DATA J Budgeted amounts presented in the accompanying financial statements are as originally adopted, or as amended, ` l in accordance with a Village ordinance. The Council may amend the current year's budget appropriation by J passage of a budget amendment ordinance after conducting two public hearings on the matter. The following is a summary of budget revisions for the year ended September 30, 2000: Original Net Final ~- Budget Revisions Budget General Fund: Total expenditures $ 9,948,036 $ 623,270 $ 10,571,306 The Combined Statement of Revenues, Expenditures and Changes in Fund Balances -All Governmental Fund Types on page l0 is presented in accordance with generally accepted accounting principles (GAAP). The Com- `- biped Statement of Revenues and Expenditures -Budget and Actual on page 11 is presented on a budgetary ba- sis. Data presented in these two statements differ because encumbrances (i.e., contracts, unfilled purchase or- ders, and other conunitments for future expenditures) are recorded as expenditures for budgetary purposes but ~ 'l 3u Financiai Section ~J THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Financial Statements September 30, 2000 are recorded as a reservation of fund balance for GAAP purposes. Adjustments necessary to compare the excess of revenues and other financing sources over expenditures and other financing uses of the general fund at year- end are as follows: Deficit of revenues and other financing sources under expenditures and other financing uses (GAAP Basis) $ (227,1.91) Adjustments: Prior year budget encumbrances expended in current year 306,166 Current year budget encumbrances outstanding at year-end (324,594) Deficit of revenues and other financing sources under expenditures and other financing uses (budgetary basis) $ (245,619) (9) CONTINGENCIES The Village is a defendant in two lawsuits. Although the outcome of these lawsuits is not presently determin- able, it is the opinion of the Village's counsel that resolution of these matters will not have a material adverse effect on the financial condition of the Village. (10) COMMITMENTS Operating Leases The Village is committed under a lease agreement for golf carts in the enterprise fund. The lease is considered for accounting purposes to be an operating lease. Lease payments for the year ended September 30, 2000, were $47,760. Future minimum lease payments are $47,760 for the year ending September 30, 2001. (11) JOINTLY GOVERNED ORGANIZATION The Village, through an interlocal agreement with certain other municipalities and Palm Beach County, created the Seacoast Utility Authority ("Seacoast") which provides water and sewer service to the citizens of each of the participating municipalities and a portion of Palm Beach County. Seacoast's governing board is comprised of one member from each participating entity. Seacoast is an independent Authority organized under the laws of the State of Florida, and the Village has no participating equity ownership in Seacoast. The Village paid $59,480 to Seacoast during the fiscal year for water and sewer service. (12) POSTEMPLOYMENT 0ENEFITS OTHER THAN PENSION BENEFITS In addition to the pension benefits described in Note 7, the Village provides postretirement health care and life insurance benefits, in accordance with State statutes, to all employees who retire from the Village. The normal retirement age for police and firefighters is age 55; the normal retirement age for all other Village employees is either age 60 or age 65, depending on the option selected by the employee. The employee's contribution is the Financial Section 31 r~ THE VILLAGE OF NORTH PALM REACH, FLORIDA Notes to Financial Statements September 30, 2000 full amount of the annual premium. Expenditures for postretirement health care and life insurance benefits are r recognized as expenditures as claims are paid. Currently, four retirees who met the eligibility requirements elected to participate in the health care plan. During the year, expenditures of $11,812 were recognized for post- retirement healthcare. This was an increase of $11,812 since no retirees participated in the plan in the pervious year. r (13) SUBSEQUENT EVENTS On November 9, 2000, the Village Council adopted Resolution 72-2000 authorizing the issuance of a note in the principal amount of $860,000 to refinance an existing promissory note of the Country Club and to finance the purchase of certain capital equipment. Interest and principal payments are due quarterly commencing February 15, 2001. The rate of interest is 5.22% per annum. The final maturity date of the note is November 15, 2010. ~l 1 ~l ~l ~L Fiii~i7Cial SE~tivi~ i ~l Required Supplementary Information Financial Section 33 ,- I THE VILLAGE OF NORTH PALM BEACH, FLORIDA Required Supplementary Information J Schedule of Funding Rrogress -General Employees Retirement Fund Actuarial UAAL as Actuarial Accrued % of Actuarial Value of Liability (AAL) Unfunded AAL Funded Covered Covered Valuation Assets -Entry Age (UAAL) Ratio Payroll Payroll Date (a) (b) (b - a) (a/b) (c) (b-a)/c 10/1/94 $ 3,209,342 $ 3,659,663 $ 450,321 87.7% $ 2,471,296 18.2% 10/1/96 3,471,658 4,132,092 660,434 84.0% 2,451,309 26.9% 10/1/96 3,805,073 4,295,018 489,945 88.6% 2,251,610 21.8% 10/1/97 4,301,968 4,585,587 283,619 93.8% 2,380,024 11.9% 10/1/98 4,574,342 4,733,864 159,522 96.6% 2,435,518 6.5% 10/1/99 .5,179,7.81 .5.,943,849 764,068 $7.1% 2,543,9.84 30.0% l ,I See notes to required supplementary information. =l 1 ~l ~1 L.~ qq n ~ JY FII~a1~C0a1 a~ect~on ~ LJ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Required Supplementary Information Schedule of Employer and State Contributions Annual Year Ended Required Percentage September 30, Contribution Contributed General Employees Retirement Fund 1995 $269,422 100.2% 1996 259,751 100.1% 1997 240,637 101.9% 1998 224,810 111.5% 1999 214,323 106.0% 2000 292,866 127.3% Fire and Police Retirement Fund 1995 126,988 103.9% 1996 131,611 101.4% 1997 167,763 101.0% 1998 118,643 145.0% 1999 182,286 105.3% 2000 97,135 135.2% * Annual required contributions for the Fire and Police Retirement Fund include contributions from the State of Florida. See notes to required supplementary information. Financial Section 35 r THE VILLAGE OF NORTH PALM BEACH, FLORIDA Notes to Required Supplementary Information September 30, 2000 The aggregate actuarial cost method does not identify or separately amortize unfunded actuarial liabilities. ` The information presented in the required supplementary schedules was determined as part of the actuarial ~ l valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: J General Fire Er~nployees and P®lice Valuation date 10/1/99 10/1/99 Actuarial cost method Frozen Entry Age Aggregate Asset valuation method 5-year 5-year smoothed smoothed market market Actuarial assumptions: ` Investment rate of return (including inflation) 8.5% /year up to retirement, 5.25% thereafter 8% /year ` i Salary increases (including inflation) 5.5% /year 6% /year J Inflation 4% /year 4% /year Post retirement benefit increases 3% /year for 3% /year those who retired before 2/1/82 ~1 ~1 ~l ii 36 Financia~5eciion ~ General Fund Financial Section 37 `1 THE VILLAGE OF NORTH BALM REACH, FLORIDA Comparative Balance Sheets General Fund September 30, 2000 and 1999 2000 1999 Assets Assets: 1 Cash and cash equivalents $ 3,417,704 $ 3,974,132 J Restricted cash 55,108 33,366 Receivables: r l State shared revenues 84,057 21,804 J Utility taxes 121,637 119,332 Accounts 128,050 111,961 Special assessments 12,867 15,227 Inventories 28,532 28,811 Prepaid items 899 427 Deposits 2,000 2,000 Total assets $ 3,850,854 $ 4,307,060 Liabilities and Equity Liabilities: Accounts payable and other liabilities $ 331,302 $ 468,047 Deferred revenue 24,732 117,272 Miscellaneous deposits 5,361 5,091 Total liabilities 361,395 590,410 Equity: Fund balance: Reserved for inventories 28,532 28,811 Reserved for prepaid items and deposits 2,899 2,427 Reserved for restricted assets 55,108 33,366 Reserved for encumbrances 324,594 306,166 Unreserved: I Designated for subsequent years 1,005,415 1,241,834 J Undesignated 2,072,911 2,104,046 Total equity 3,489,459 3,716,650 Total liabilities and equity $ 3,850,854 $ 4,307,060 ~1 ~1 1 1 fl qO +3 JV l°oiTiaPia.i'al v°c'rtiori j ~1 I THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues and Other Financing Sources -Budget and Actual General Fund Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Taxes: Ad valorem taxes $ 4,276,702 $ 4,358,742 $ 82,040 Sales and use taxes: Local option gas tax trust 150,000 169,208 19,208 Alternate fuel user fee - 49 49 Motor fuel gas tax 75,000 79,692 4,692 Total sales and use taxes 225,000 248,949 23,949 Franchise taxes: Electricity 610,000 587,515 (22,485) Telephone 25,000 31,778 6,778 Gas 4,000 2,813 (1,187) Cable TV 85,000 120,749 35,749 Water 175,000 184,978 9,978 Total franchise taxes 899,000 927,833 28,833 . Utility service taxes: Electricity 745,000 788,407 43,407 Telecommunication 350,000 431,462 81,462 Gas 20,000 23,093 3,093 Fuel oil 61 - (61) Propane 20,000 15,763 (4,237) Total utility service taxes 1,135,061 1,258,725 123,664 Total taxes 6,535,763 6,794,249 258,486 Licenses and permits: Village occupational licenses 185,000 196,222 11,222 Building permits 255,000 560,195 305,195 Other licenses and permits: Bicycle registrations 10 2 (8) Total licenses and permits 440,010 756,419 316,409 Intergovernmental revenue: State shared revenue: General government: Cigarette tax 30,000 25,419 (4,581) State shared revenue 230,000 246,257 16,257 Alcoholic beverages licenses 8,000 9,613 1,613 Local government 1/2 cent sales tax 750,000 883,878 133,878 Total state shared revenue 1,018,000 1,165,167 147,167 Continued on the following page... Financial Section 39 r THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues and Other Financing Sources - Sudget and Acctual - General Fund (Continued) Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) ~ l Transportation: I Motor fuel tax rebate $ 7,000 $ 7,505 $ 505 l County shared revenues: r j County occupational licenses 30,000 34,443 4,443 911-system enhancement program 26,731 23,139 {3,592) Beautification grant 10,000 9,854 (146) Recycling grant 3,000 3,461 461 DCA grant 10,000 29,541 19,541 r Total county shared revenues 79,731 100,438 20,707 Total intergovernmental revenue 1,104,731 1,273,110 168,379 Charges for services: r General government: Sale of maps and publications 500 667 167 Certify, copy & research 600 1,107 507 1 Election filing fees 60 40 (20) J Total general government 1,160 1,814 654 Public safety: Accident reports and identifications 2,000 2,801 801 Ambulance fees 135,000 169,811 34,811 Total public safety 137,000 172,612 35,612 Physical environment: Refuse collection fees 73,000 78,105 5,105 l Rental of cellular tower 20,000 41,467 21,467 ~ J Ground maintenance - 100 100 Protective inspections fees - 4,107 4,107 ` l Total physical environment 93,000 123,779 30,779 ) Culture and recreation: Library: Memberships 6,500 5,140 (1,360) Copying 2,000 1,188 (812) Postage 1,000 804 (196) Contributions - 5,411 5,411 Recreation: Program activity fees 2,500 3,091 591 Arts and crafts 3,200 4,574 1,374 Summer programs 3,000 10,816 7,816 Continued on the following page... rt 4~ ~inanciai'ection ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues and Other Financing Sources -Budget and Actual - General Fund (Continued) Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Other: Lost books -library $ 1,000 $ 354 $ (646) Recreation facility usage fees 25,000 34,485 9,485 Special recreation facilities: Marina 69,000 68,369 (631) Marina decals 4,000 5,174 1,174 Total culture and recreation 117,200 139,406 22,206 Zoning and annexation fees - 200 200 Total charges for services 348,360 437,811 89,451 Fines and forfeitures: Court cases: Court fines 60,000 93,858 33,858 Law enforcement trust - 1,233 1,233 Police education $2.00 1,800 6,808 5,008 Total court cases 61,800 101,899 40,099 Library fines 8,000 8,005 5 Other: Parking fines 1,100 2,725 1,625 False alarm fines 12,000 4,350 (7,650) Alarm users permit fee 8,000 11,560 3,560 Mooring fee - 90 90 Occupational license penalty 5,500 4,285 (1,215) Outside services - 7,641 7,641 Code enforcement 5,000 9,085 4,085 Seized tag payment 200 50 (150) Total other 31,800 39,786 7,986 Total fines and forfeitures 101,600 149,690 48,090 Revenue from use of money: Interest: Interest earned 30,000 51,869 21,869 Interest earned -SBA 150,000 238,544 88,544 Total revenue from use of money 180,000 290,413 110,413 Miscellaneous Revenue: Other miscellaneous revenue: Reimbursements from the Country Club: Administration 67,500 67,500 - Maintenance 1,000 180 (820) Total reimbursements from the Country Club 68,500 67,680 (820) Continued on the following page... Financial Section 41 TbE VILLAGE OF NORTH PALM BEACb, FLORIDA r Schedule of Revenues and ©ther Financing Sources -Budget and Actual - C"~eneral Fund (Continued) Year Ended September 30, 2000 - Variance Favorable Budget Actual (Unfavorable) ~ 3 Other: Insurance refunds: Insurance $ - $ 2,724 $ 2,724 Worker's compensation - 6,039 6,059 Wabash assessment 2,500 - (2,500) Other: Discounts -earned 5,000 12,628 7,628 Commissions -telephone 150 7 ~ (143) Commissions -vending machine 300 235 (65) Donations 1,000 16,184 15,184 Miscellaneous revenues 3,093 33,902 30,809 Total miscellaneous revenue 80,543 139,419 X8,876 Total revenues 8,791,007 9,841,111 1,00,104 Other financing sources: Loan proceeds - 112,000 112,000 Sale of surplus equipment 5,000 4,160 (840) Total revenues and other financing sources $ 8,796,007 $ 9,957,271 $ 1,161,264 ~l ~I ~1 ~ ~ I i 1 ~a 3 4~ E6nancia! Section. ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) General government: Village Council: Personal services: Executive salaries $ 27,600 $ - $ 27,600 $ 27,600 $ - FICA 1,958 - 1,958 2,500 542 Worker's compensation 1,560 - 1,560 1,560 - Operating expenses: Professional services 1,529 - 1,529 3,000 1,471 Accounting and auditing 17,282 - 17,282 28,000 10,718 Travel - - - 345 345 R&M furniture & equipment - - - 475 475 Employee relations 9,885 - 9,885 11,350 1,465 Advertising 5,794 - 5,794 6,000 206 Advisory Board dinner 4,530 - 4,530 4,530 - Office supplies 233 - 233 200 (33) Publications & subscriptions 40 - 40 60 20 Membership & dues 6,535 - 6,535 6,950 415 Conference & seminars 230 - 230 750 520 Total Village Council 77,176 - 77,176 93,320 16,144 Village Manager: Personal services: Executive salaries 171,031 - 171,031 172,772 1,741 Regular pay 30,267 - 30,267 40,053 9,786 Holiday gifts 200 - 200 200 - FICA 14,407 - 14,407 ]6,281 1,874 Pension-general employees 20,547 - 20,547 20,519 (28) Health insurance 7,994 - 7,994 9,820 1,826 Life insurance 1,071 - 1,071 1,071 - LTD insurance 719 - 719 1,044 325 Worker's compensation 13,824 - 13,824 13,833 9 Operating expenses: Employee assistance program 1,330 - 1,330 1,800 470 Administration fee 500 - 500 750 250 Contractual services - - - 200 200 Travel 1,650 - 1,650 2,163 513 Auto allowance 6,000 - 6,000 6,000 - Telephone 7,030 - 7,030 7,200 170 Insurance-surety bond 700 - 700 750 50 Computer supplies 924 - 924 1,000 76 R&M furniture & equipment - - - ] 00 100 Printing and binding 253 - 253 500 247 Employee relations 5,094 - 5,094 5,275 181 Continued on the following page... Financial Section 43 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) - caeneral Fund (continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Advertising $ 1,283 $ - $ 1,283 $ 1,300 $ 17 Office supplies 1,081 - 1,081 1,050 (31) Furniture supplies 157 - 157 250 93 Publications & subscriptions 2,380 - 2,380 2,315 (65) Membership & dues 2,335 - 2,335 2,370 35 - Conference and seminars 875 - 875 1,060 185 Training and education 1,625 649 2,274 2,350 76 Total Village Manager 293,277 649 293,926 312,026 18,100 Finance: Personal services: Executive salaries 73,418 - 73,418 73,569 151 Regular pay 109,111 - 109,111 109,063 (48) Longevity pay 2,400 - 2,400 2,400 - Certification pay 3,000 - 3,000 3,000 - ` Part-time pay 10,681 - 10,681 10,690 9 Overtime pay 13,177 - 13,177 13,100 (77) Holiday gifts 250 - 250 250 - FICA 15,720 - 15,720 15,663 (57) ` 1 Pension-general employees 17,798 - 17,798 17,798 - 1 Health insurance 7,930 - 7,930 8,546 616 Life insurance 948 - 948 931 (17) ` l LTD insurance 362 - 362 392 30 J Worker's compensation 12,061 - 12,061 12,061 - Operating expenses: Professional services 2,494 1,500 2,994 3,000 6 (1,000) Contractual services 6,230 1,000 7,230 7,230 - Travel 4,571 - 4,571 4,575 4 Telephone 3,481 - 3,48] 3,500 19 Insurance-surety bond 1,200 - 1,200 1,200 - R&M furniture & equipment 1.,114 - 1,114 1,120 6 l ' ' ~ _ Printing and binding 3,918 - 3,918 3,900 (18) ~- 1 Employee relations 846 - 846 800 (46) Office supplies 2,292 - 2,292 2,300 8 Computer supplies 2,942 - 2,942 3,000 58 Publications & subscriptions 79 - 79 100 21 Membership and dues 780 - 780 800 20 Conference and serrninars 1,155 - 1,155 1,150 (5) ~ Training and education 679 - 679 700 21 Capital outlay: Office equipment - (5,071) (5,071) - 5,071 i Total Finance 298,637 (3,571) 295,066 300,838 5,772 `-J j i Continued on the following page... ra Financial Bection i ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Village Clerk: Personal services: Executive salaries $ 49,219 $ - $ 49,219 $ 49,159 $ (60) Regular pay 31,761 - 31,761 31,697 (64) Certification pay 1,000 - 1,000 2,000 1,000 Part-time pay - - - 3,660 3,660 Holiday gifts 100 - 100 100 - FICA 5,995 - 5,995 6,156 161 Pension-general employees 7,643 - 7,643 7,643 - Health insurance 4,417 - 4,417 4,761 344 Life insurance 435 - 435 399 (36) LTD insurance 210 - 210 196 (14) Worker's compensation 5,571 - 5,571 5,571 - Operating expenses: Contractual services 150 - 150 1,100 950 Travel 606 - 606 606 - Telephone 2,071 - 2,071 2,193 122 Rental-facility 500 - 500 500 - Insurance-surety bond 100 - 100 110 l0 R&M building & grounds - - - l20 120 R&M furniture & equipment 713 - 713 960 247 Printing and binding 1,230 - 1,230 1,450 220 Employee relations 260 - 260 500 240 Recording fees/court cost 50 - 50 300 250 Trophies, awards & prizes 626 - 626 975 349 Office supplies 1,726 - 1,726 1,720 (6) Recording tapes 137 - 137 140 3 Records retention supplies - - - l00 100 Flower expense 320 - 320 700 380 Publications & subscriptions 303 - 303 380 77 Membership & dues 80 - 80 240 160 Conference and seminars 155 - 155 155 - Training and education 600 - 600 600 - Total Village Clerk 115,978 - 115,978 124, ] 91 8,213 Village Attorney: Operating expenses: Monthly retainer 64,272 - 64,272 64,300 28 Special legal services 58,683 - 58,683 47,900 (10,783) Labor services 8,157 - 8,157 8,200 43 Total Village Attorney 131,112 - 131,112 120,400 (10,712) Continued on the following page... Financial Section 45 r THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and CJther Financing Uses - Budget and,4ctual (Budgetary Basis) - Ueneral Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Planning and Community Development: Contractual services: 1 Engineering/planning $ 5,227 $ 17,027 $ 22,254 $ 22,800 $ 546 Engineering/planning Village Hall 25,615 (19,508) -6,107 b0,000 53,893 ~ ~ Archivist/historian - - - 200 200 Total Planning and Community Development 30,842 (2,481) 28,361 83,000 54,639 General Services: Operating expenses: Contract Labor 7,410 - 7,410 9,900 2,490 Telephone 1,933 - 1,933 2,100 167 Postage 25,530 - 25,530 27,200 1,670 Electricity 8,318 - 8,318 12,600 4,282 ` i Water and sewer 2,069 - 2,069 2,300 231 J Gas - - - 100 100 Solid waste disposal 200 - 200 400 200 Rental-postage equipment 1,513 - 1,513 1,600 87 Rental-copier equipment 5,290 - 5,290 7,200 1,910 Insurance -package 149,999 - 149,999 150,000 1 R&M building & grounds 439 - 439 600 161 ` 1 R&M furniture & equipment 2,672 - 2,672 2,900 228 J Printing and binding 9,515 - 9,515 9,450 (65) Newsletter supplies 12,846 - 12,846 13,150 304 Office supplies 1,560 - 1,560 1,500 (60) Building maintenance supplies 1,550 - 1,550 2,500 950 Furniture/fixtures supplies 32 - 32 150 118 i 1 Irrigation supplies - - - 300 300 JI Machinery & equipment supplies 708 - 708 1,000 292 Fertilizers 234 - 234 350 116 Custodial supplies 929 - 929 1,450 521 Refreshments and supplies 721 - 721 2,000 1,279 Capital outlay: Construction & major renovations - - - - - ` i Computer hardware & software 128,461 (134,190) (5,729) - 5,729 Audio, visual & communications 8,100 1,767 9,867 9,900 33 Total General Services 370,029 (132,423) 237,606 258,650 21,044 ~1 Special Projects: Contractual services: Professional services 513 - 513 - (513) Continued on the following page... _ ri 4~ Finarocial vection THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Comprehensive plan amendments $ 5,400 $ - $ 5,400 $ 7,100 $ 1,700 Real estate property - _ _ _ _ Recreation master plan 5,000 - 5,000 5,000 - Northlake Boulevard redevelopment 20,000 - 20,000 20,000 - Capital outlay: Construction & major renovations 29,117 271,883 301,000 301,000 - Total Special Projects 60,030 271,883 331,913 333,100 1,187 Total general government 1,377,081 134,057 1,511,138 1,625,525 114,387 Public Safety: Law enforcement: Personal services: Executive salaries 188,465 - 188,465 218,220 29,755 Regular pay 1,147,997 - 1,147,997 1,190,190 42,193 Longevity pay - _ _ _ _ Part-time pay 60,901 - 60,901 64,949 4,048 Overtime pay 69,827 - 69,827 70,560 733 Holiday overtime 34,705 - 34,705 34,706 l Training overtime 26,928 - 26,928 26,842 (86) Outside services pay 5,241 - 5,241 - (5,241) Special pay 16,416 - 16,416 18,561 2,145 Public safety pay increment - _ _ _ _ Holiday gifts 2,525 - 2,525 2,525 - FICA 115,508 - 115,508 122,104 6,596 Pension-general employees 33,332 - 33,332 33,332 - Pension-police and fire 37,421 - 37,421 74,842 37,421 Health insurance 90,836 - 90,836 102,022 11,186 Life insurance 7,358 - 7,358 7,358 - LTD insurance 11,171 - 11,171 11,302 131 Worker's compensation 99,841 - 99,84] 99,841 - Operating expenses: Physical exams 2,975 - 2,975 3,270 295 Other professional _ _ _ _ _ Laundry & dry cleaning 19,316 - 19,316 19,317 1 Travel 8,920 - 8,920 9,000 80 Telephone - _ _ _ _ Rental-equipment 3,269 - 3,269 3,500 231 Insurance-law enforcement liability 843 - 843 ],000 157 R&M automotive 8,859 - 8,859 9,100 241 Continued on the followi~ag page... Financial Section 47 f THE VILLAGE OF NORTH PALM BEACH, FLORIDA r Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) , R&M machinery & equipment $ 5,700 $ 50 $ 5,750 $ 11,943 $ 6,193 R&M PA & communication 4,561 2,493 7,054 7,100 46 i R&M computer 690 - 690 700 10 Printing and binding 6,571 - 6,571 6,850 279 3 Photographic 2,452 - 2,452 2,500 48 Employee relations 972 - 972 1,000 28 Advertising 2,104 - 2,104 2,200 96 Licenses & fees 2,312 - 2,312 2,600 288 r Prisoner and jail expenses 426 - 426 500 74 Special investigation 720 - 720 1,050 330 Victim examination fee - - - 250 250 ` Appreciation Banquet 4,015 - 4,015 4,050 35 Office supplies 6,029 - 6,029 5,950 (79) Machinery & equipment supplies - - - - - ii Auto parts supplies 20,027 - 20,027 20,149 122 Safety supplies 1,140 - 1,140 2,100 960 Chemicals 457 - 457 500 43 1 Custodial supplies 282 - 282 298 16 J Gas, oil & lubricants 33,249 - 33,249 34,758 1,509 Refreshments & supplies 2,567 - 2,567 2,700 133 Uniforms & shoes 13,538 - 13,538 13,600 62 Ammunition and gun parts 990 (38) 952 1,950 998 Fingerprinting supplies 1,306 - 1,306 1,300 (6) Publications & subscriptions 1,518 490 2,008 2,139 131 Membership & dues 1,025 - 1,025 960 (65) Conference & seminars 2,400 - 2,400 2,400 - L Training & education 9,045 - 9,045 9,000 (45) 2nd dollar education 780 - 780 850 70 R&M automotive 30 - 30 - (30) Auto parts supplies 276 - 276 - (276) Capital outlay: Capital 2,961 - 2,961 3,734 773 Automotive 83,162 - 83,162 83,275 113 Computer hardware & software - - - - - Audio, visual & 1 communication 15,664 (1,950) 13,714 13,805 91 Audio, visual & communication - - - - - Machinery & equipment 3,880 - 3,880 3,900 20 Total Law Enforcement 2,223,503 1,045 2,224,548 2,366,652 142,104 Continued on the following page... u Financial aecti6n 1 THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Fire Prevention: Personal services: Executive salaries $ 58,090 $ - $ 58,090 $ 58,062 $ (28) Regular pay 148,345 - 148,345 148,288 (57) Overtime pay 16,535 - 16,535 16,986 451 Holiday overtime 3,544 - 3,544 4,245 701 Training overtime 7,270 - 7,270 8,110 840 Special pay 4,965 - 4,965 5,100 135 Holiday gifts 900 - 900 900 - FICA 17,331 - 17,331 17,683 352 Pension-police & fire 6,779 - 6,779 10,109 3,330 Volunteer length of service award 9,208 - 9,208 9,210 2 Health insurance 10,925 - 10,925 11,638 713 Life insurance 1,083 - 1,083 991 (92) LTD insurance 1,731 - 1,731 1,638 (93) Worker's compensation 13,153 - 13,153 13,153 - Operating expenses: Physical exams 20 - 20 21 1 Laundry and dry cleaning 2,655 - 2,655 2,669 14 Travel 1,793 - 1,793 1,793 - R&M automotive 4,865 - 4,865 4,800 (65) R&M machinery & equipment 2,295 - 2,295 2,400 105 R&M PA & communication 1,171 - 1,171 1,200 29 Licenses & fees 435 - 435 435 - Volunteer appreciation 2,177 - 2,177 2,176 (1) Office supplies 1,654 - 1,654 1.,575 (79) Audio, visual & communication 41 - 41 42 1 Machinery & equipment supplies 3,753 - 3,753 3,900 147 Auto parts supplies 2,699 - 2,699 2,664 (35) Chemicals 667 - 667 715 48 Gas, oil and lubricants 4,154 - 4,154 4,142 (12) Refreshments and supplies 291 - 291 291 - Uniforms and shoes 4,435 (775) 3,660 4,075 415 Flashlights & batteries 232 - 232 233 1 Uniforms-volunteers 3,943 - 3,943 3,950 7 Publications & subscriptions 533 - 533 533 - Membership & dues 320 - 320 320 - Conference & seminars 394 - 394 394 - Training & education 1,955 - 1,955 1,955 - Capital outlay: Computer hardware & software 2,280 - 2,280 2,280 - Machinery & equipment 4,894 - 4,894 4,895 1 Total Fire Prevention 347,515 (775) 346,740 353,571 6,831 Continued on the following page... Financial Section 49 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budget and Actual (Budgetary Basis) e General Fund (Oonti,~tued) Year Ended September 30, 2000 Actual r Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) f Emergency Medical Service: Personal services: l Regular pay $ 410,7 ] 6 $ - $ 410,716 $ 423,468 $ 12,752 Overtime pay 73,079 - 73,079 73,006 (73) j Holiday overtime 8,273 - 8,273 8,300 27 Training overtime 12,6]4 - 12,614 12,600 (14) ~ j Special pay 2,799 - 2,799 3,380 581 J Holiday gifts 600 - 600 600 - FICA 37,632 - 37,632 38,721 1,089 Pension-general employees 21,128 - 2] ,128 21,128 - Pension-police and fire 8,867 - 8,867 ] 7,734 8,867 Health insurance 32,262 - 32,262 33,282 1,020 - j Life insurance 2,222 - 2,222 2,222 - JI LTD insurance 3, ] 98 - 3,198 3,483 285 Worker's compensation 28,721 - 28,721 28,721 - Operating expenses: Preventative medical service 567 - 567 700 133 Other professional services 13,200 - 13,200 13,200 - Laundry & dry cleaning 5,760 - 5,760 6,480 720 Contractual services 1,958 - 1,958 1,994 36 Travel 2,072 - 2,072 2,334 262 Telephone 1,285 - 1,285 1,500 215 Electricity 1,655 - 1,655 1,700 45 Water & sewer 146 - 146 225 79 Rental-equipment 5,2] 8 - 5,218 5,240 22 Insurance-EMT - - - 2,800 2,800 ` R&M automotive 2,901 - 2,901 3,000 99 R&M machinery & equipment 5,024 - 5,024 5,100 76 R&M PA & communication 2,102 - 2,102 2,050 (52) Licenses & fees 4,525 - 4,525 4,598 73 Office supplies 2,402 - 2,402 2,350 (52) Building maintenance supplies 169 - 169 200 31 Machinery & equipment supplies 33 - 33 100 67 4 Auto parts supplies 3,S29 - 3,529 3,500 (29) 1 Medical & safety supplies ] 5,183 - ] 5,183 l 5,200 17 Disaster supplies 866 - 866 878 12 l Chemicals 1,312 - 1,312 1,250 (62) ~ J Custodial supplies 398 - 398 300 (98) Gas, oil & lubricants 5,102 - 5,102 5,145 43 1 TJniforms 8i shoes 6,077 - 6,077 6,341 264 ~ l Refreshments oZ supplies 245 - 245 260 5 Flashlights & batteries 500 - 500 500 - Publications & subscriptions 228 - 228 232 4 Membership & dues 100 - 100 100 - '- Conference & seminars 1,230 - 1,230 1,235 5 Continued on the following page... ii 59 Financial Section THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Training & education $ 7,901 $ (936) $ 6,965 $ 6,952 $ (13) Capital outlay: Machinery & equipment 6,240 - 6,240 6,250 10 Total Emergency Medical Service 740,039 - (936) 739,103 768,349 29,246 Total public safety 3,311,057 (666) 3,310,391 3,488,572 178,181 Public Services: Code Enforcement: Personal services: Executive salaries 129,045 - 129,045 129,077 32 Regular pay 178,462 - 178,462 183,023 4,561 Longevity pay 2,700 - 2,700 2,700 - Part-time pay 17,692 - 17,692 17,659 (33) Overtime pay 1,177 - 1,177 1,250 73 Holiday gifts 425 - 425 425 - FICA 23,768 - 23,768 26,233 2,465 Pension-general employees 31,103 - 31,103 31,103 - Health insurance 17,817 - 17,817 19,640 1,823 Life insurance 1,613 - 1,613 1,613 - LTD insurance 781 - 781 727 (54) Worker's compensation 21,941 - 21,941 21,941 - Operating expenses: Uniform rental 1,305 - 1,305 1,465 160 Contractual service 1,377 - 1,377 - (1,377) Other contractual services - - - 2,600 2,600 Travel 2,259 - 2,259 2,840 581 Telephone 7,966 - 7,966 9,400 1,434 Electricity 2,997 - 2,997 5,300 2,303 Water & sewer 401 - 401 450 49 R&M building & grounds 1,517 - 1,517 1,800 283 R&M furniture & equipment 2,884 (62) 2,822 2,900 78 R&M PA & communication 714 2,303 3,017 3,050 33 Printing & binding 1,239 - 1,239 1,300 61 Reproduction 102 - 102 400 298 Employee relations 356 - 356 725 369 Advertising 3,345 - 3,345 4,100 755 County PW activities 300 - 300 300 - Office supplies 5,345 - 5,345 5,300 (45) Shop tools & supplies 56 - 56 150 94 Building maintenance supplies 130 - 130 600 470 Continued on the following page... Financial Section 51 r TFIE VILLAGE OF NORTH PALM REACH, FLORIDA r~ Schedule of Expenditures and CJther Financing ~Jses - Budget and actual (Budgetary Basis) - caenerai Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Machinery & equipment supplies $ 156 $ - $ 156 $ 150 $ (6) Auto parts supplies 3,274 - 3,274 3,400 126 ~ Tires & tubes 511 - 511 600 89 Custodial-supplies 447 - 447 400 {47) ~ ' Gas, oil & lubricants 3,028 - 3,028 3,000 (28) 11 Refreshments & supplies 202 - 202 500 298 Publications & subscriptions 675 - 675 790 115 ~ , Membership & dues 720 - 720 1,225 505 Conference & seminars 830 - 830 1,000 170 Training & education 2,982 - 2,982 3,000 18 _ Capital outlay: Automotive 53,772 - 53,772 8,800 (44,972) Furniture & fixtures 5,351 - 5,351 5,375 24 i Total Code Enforcement 530,765 2,241 533,006 506,311 (26,695) ` Facilities Maintenance: Personal services: Regular pay 209,001 - 209,001 214,472 5,471 Longevity pay 4,500 - 4,500 4,500 - Part-time pay - - - - - Overtime pay 4,262 - 4,262 7,900 3,638 Holiday gifts 400 - 400 400 - FICA 16,213 - 16,213 17,440 1,227 Pension-general employees 21,657 - 21,657 21,657 - ` 1 Health insurance 20,910 - 20,910 22,039 1,129 J Life insurance 1,089 - 1,089 1,089 - LTD insurance 489 - 489 585 96 ` , Worker's compensation 13,961 - 13,961 13,961 - JI Operating expenses: Physical exams 88 - 88 165 77 Uniform rental 2,163 - 2,163 2,168 5 R&M machinery & equipment 82 - 82 200 118 `- R&M PA & communication 152 - 152 150 (2) Shop tools & supplies 706 - 706 800 94 Auto parts supplies 1,644 - 1,644 2,000 356 Tires & tubes 36 - 36 300 264 Gas, oil & lubricants 3,707 - 3,707 3,800 93 l Uniforms & shoes 3i4 - 314 400 86 j Capital outlay: Automotive 29,398 - 29,398 2,700 (26,698) Automotive 900 - 900 900 - Total Facilities Maintenance 331,672 - 331,672 317,626 (14,046) Continued on the following page... d 5~ firDancial Sec#ion 1 THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) General Services: Operating expenses: Telephone $ 30,829 $ - $ 30,829 $ 30,800 $ (29) Postage 1,352 - 1,352 1,335 (17) Electricity 34,999 - 34,999 35,000 1 Water and sewer 2,341 - 2,341 4,000 1,659 Gas 1,781 - 1,781 3,700 1,919 Solid waste disposal 1,568 - 1,568 1,568 - Rental -copier equipment 5,750 - 5,750 5,847 97 R&M building & grounds 1,427 - 1,427 1,500 73 R&M furniture & equipment 443 - 443 650 207 Building maintenance supplies 1,539 - 1,539 1,550 11 Furniture & fi xtures 1,108 - 1,108 1,132 24 Irrigation supplies 285 - 285 300 15 Machinery & equipment supplies 299 - 299 365 66 Fertilizers 283 - 283 300 17 Custodial supplies 2,759 - 2,759 2,750 (9) Refreshment and supplies 2,927 - 2,927 2,950 23 Total General Services 89,690 - 89,690 93,747 4,057 Solid Waste Collection: Personal services: Regular pay 533,895 - 533,895 541,320 7,425 Longevity pay 17,400 - 17,400 17,400 - Overtimepay 8,298 - 8,298 8,521 223 Holiday overtime 9,478 - 9,478 9,479 1 Holiday gifts 1,100 - 1,100 1,100 - FICA 42,409 - 42,409 43,544 1,135 Pension-general employees 54,074 - 54,074 54,074 - Health insurance 52,640 - 52,640 56,409 3,769 Life insurance 2,757 - 2,757 2,757 - LTD insurance 1,806 - 1,806 1,758 (48) Worker's compensation 35,271 - 35,271 35,27] - Operating expenses: Preventative medical supplies 360 - 360 450 90 Physical exams 317 - 317 500 ] 83 Uniform rental 6,013 - 6,013 5,900 (113) Solid waste disposal 87,330 - 87,330 88,900 1,570 R&M PA & communication 393 - 393 400 7 Advertising 1,027 - 1,027 1,000 (27) Shop tools & supplies 842 - 842 800 (42) Auto parts supplies 33,859 - 33,859 33,800 (59) Tires & tubes 5,094 - 5,094 5,100 6 Chemicals - - - 600 600 Continued on the following page... Financial Section 53 ~~1 THE VILLAGE OF NORTH PALM DEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) - Ueneral Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable ,- Actual Current Year Basis Budget (Unfavorable) Gas, oil, & lubricants $ 39,489 $ - $ 39,489 $ 39,500 $ 11 Oil-grease 2,156 - 2,156 2,500 344 Uniforms ~ shoes 3,069 - 3,069 3,120 51 t Recycling program 700 - 700 700 - Capital outlay: ~ j Automotive 172,498 (67,358) 105,140 95,000 (10,140) l Total Solid Waste Collection 1,112,275 (67,358) 1,044,917 1,049,903 4,986 Street Maintenance: Personal services: Executive salaries 33,960 - 33,960 35,227 1,267 Regular pay 211,396 - 211,396 238,207 26,811 i Longevity pay 4,500 - 4,500 4,500 - J Overtime pay 1,271 - 1,271 1,200 (71) Holiday gifts 550 - 550 550 - FICA 18,698 - 18,698 22,953 4,255 Pension-general employees 28,501 - 28,501 28,501 - j Health insurance 27,541 - 27,541 28,916 1,375 Life insurance 1,469 - 1,469 1,469 - ` LTD insurance 836 - 836 1,020 184 Worker's compensation 19,171 - 19,171. 19,171 - Operating expenses: L Physical exams - - - 350 350 Other professional services 15,221 (6,780) 10,262 12,000 1,738 1,821 Uniform rental 2,548 - 2,548 2,510 (38) Electricity 47,050 - 47,050 52,000 4,950 Water & sewer 18,935 - 18,935 20,000 1,065 Rental-equipment 357 - 357 400 43 R&M PA & communication 99 - 99 108 9 , R&M street paving 46,573 (7,121) 39,452 42,150 2,698 ~ R&M storm drainage system 22,127 (16,470) 20,707 21,450 743 15,050 Street striping 1,412 - 1,412 1,500 88 Shop tools & supplies 1,195 - 1,195 1,500 305 Irrigation supplies 5,217 - 5,217 6,000 783 Machinery & equipment supplies 5,969 (994) 4,975 5,000 25 '- Auto parts supplies 3,006 - 3,006 3,000 (6) Street light supplies 922 - 922 1,000 78 Tires & tubes 657 - 657 1,400 743 Trees & sod 7,332 - 7,332 7,500 168 Fertilizers 3,310 - 3,310 4,000 690 Traffic control signs 9,086 - 9,086 11,500 2,414 ~ Fences-alleys 484 - 484 500 16 Catch basin grates 1,855 - 1,855 2,000 145 Continued on the following page... 5~ Financial vection THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actua( Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Beautification program $ 11,604 $ (11,654) $ (50) $ - $ 50 Chemicals - - - 500 500 Gas, oil and lubricants 3,732 - 3,732 4,000 268 Uniforms and shoes 762 - 762 950 188 Asphalt, shell and concrete 3,614 - 3,614 4,000 386 Capital outlay: Construction & major renovation - - - 500 500 Automotive 38,193 - 38,193 31,400 (6,793) Machinery and equipment 5,940 - 5,940 6,000 60 Total Street Maintenance 605,093 (26,148) 578,945 624,932 45,987 Mechanical Maintenance: Personal services: Regular pay 76,194 - 76,194 87,454 11,260 Overtime pay 944 - 944 1,000 56 Holiday gifts 200 - 200 200 - FICA 5,736 - 5,736 6,904 1,168 Pension-general employees 8,574 - 8,574 8,574 - Health insurance 7,930 - 7,930 8,546 616 Life insurance 481 - 481 442 (39) LTD insurance 360 - 360 305 (55) Worker's compensation 5,834 - 5,834 5,834 - Operating expenses: Uniform rental 1,215 - 1,215 1,300 85 Other contractual services 1,050 - 1,050 1,240 190 Telephone 233 - 233 400 167 Electricity 2,358 - 2,358 2,500 142 Water & sewer 1,342 - 1,342 1,500 158 Rental-equipment - - - 200 200 R&M building & grounds 899 - 899 1,000 101 R&M machinery & equipment 8,701 - 8,701 8,800 99 R&M PA & communication 91 - 91 52 (39) Licenses & fees 50 - 50 150 100 Shop tools & supplies 4,816 - 4,816 5,000 184 Building maintenance supplies 1,351 - ],351 1,400 49 Machinery & equipment supplies 356 - 356 400 44 Auto parts supplies 599 - 599 600 1 Tires & tubes - - - 300 300 Chemicals 826 - 826 1,000 174 Custodial supplies 984 - 984 1,200 216 Gas, oil & lubricants 1,289 - 1,289 1,300 11 Uniforms and shoes 132 - 132 210 78 Continued on the following page... Financial Section 55 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA ` Schedule of Expenditures and Other Financing Uses - Budget and Actual (Budgetary Basis) - caeneral Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable ,- Actual Current Year Basis Budget (Unfavorable) Capital outlay: Machinery & equipment $ 2,643 $ - $ 2,643 $ 3,000 $ 357 ' l Total Mechanical Maintenance 135,188 - 135,188 150,811 15,623 ~t Park Maintenance: Personal services: Regular pay 170,335 - 170,335 185,669 15,334 ! Longevity pay 3,000 - 3,000 3,000 - 1 Part-time pay 7,894 - 7,894 9,861 1,967 Overtime pay 3,082 - 3,082 6,000 2,918 _ Holiday gifts 400 - 400 400 - FICA 13,788 - 13,788 15,716 1,928 Pension-general employees 18,626 - 18,626 18,626 - Health insurance 15,254 - 15,254 18,366 3,112 Life insurance 959 - 959 948 (11) LTD insurance 646 - 646 589 (57) Worker's compensation 12,918 ~ - 12,918 12,918 - i 'i Operating expenses: 1) Physical exams - - - 175 175 Other professional services 88 = 88 450 362 Uniform rental 2,398 - 2,398 2,368 (30) Tree trimming 3,000 3,000 3,000 - Electricity 3,412 - 3,412 4,450 1,038 Solid waste disposal 5,749 - 5,749 5,750 1 Rental-equipment 133 - 133 500 367 R&M marina 2,650 - 2,650 3,100 450 R&M streets, roads & paths 411 - 411 500 89 Printing & binding 325 - 325 350 25 Licenses & fees - - - 100 100 Shop tools & supplies 553 - 553 600 47 Building maintenance supplies 4,430 - 4,430 5,000 570 Irrigation supplies 6,316 - 6,316 6,150 (166) Machinery & equipment supplies 5,900 - 5,900 6,300 400 Auto parts supplies 1,321 - 1,321 2,000 679 Tires & tubes 473 - 473 600 127 Trees & sod 4,629 - 4,629 4,700 71 Fertilizers 11,392 - 11,392 12,000 608 Sand/clay/shelUtopsoil 5,444 - 5,444 5,400 (44) Lime for ballfields 421 - 421 900 479 Chemicals 276 - 276 500 224 Gas, oil and lubricants 3,447 - 3,447 3,500 53 Uniforms and shoes 483 - 483 630 147 Continued on the following page... r~ 5f Financial Section i THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budget and Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Total Park Maintenance $ 310,153 $ - $ 310,153 $ 341, l 16 $ 30,963 Total public services 3,114,836 (91,265) 3,023,571 3,084,446 60,875 Leisure services: Library: Personal services: Executive salaries 49,963 - 49,963 49,913 (50) Regular pay 214,747 - 214,747 238,599 23,852 Longevity pay 3,000 - 3,000 3,300 300 Part-time pay 49,621 - 49,621 75,856 26,235 Holiday gifts 675 - 675 675 - FICA 23,920 - 23,920 28,240 4,320 Pension-general employees 29,536 - 29,536 29,536 - Health insurance 18,856 - 18,856 19,059 203 Life insurance 1,565 - 1,565 1,565 - LTD insurance 234 - 234 298 64 Worker's compensation 23,782 - 23,782 23,782 - Operating expenses: Physical exams - - - 165 165 Professional services - 3,000 3,000 8,000 5,000 Other contractual services 750 - 750 800 50 Travel 859 - 859 1,544 685 Telephone 6,902 - 6,902 7,000 98 Electricity 15,155 - 15,155 17,500 2,345 Water & sewer 1,546 - 1,546 1,700 154 Solid waste disposal 388 - 388 400 12 Rental-equipment 2,341 - 2,341 2,620 279 Rental-film exhibit 52 - 52 300 248 R&M building & grounds 9 - 9 800 791 R&M windows 250 - 250 250 - R&M carpet 516 - S l 6 600 84 R&M furniture & office equipment 299 - 299 350 51 R&M machinery & equipment 54 - 54 1,200 1,146 R&M elevator 1,251 - 1,251 l ,293 42 R&M PA & communication 200 - 200 200 - R&M computer 1,005 - 1,005 1,000 (5) Printing & binding 3,600 - 3,600 3,600 - Employee relations 795 - 795 800 5 Licenses & fees 104 - 104 260 156 Office supplies 4,216 - 4,216 4,208 (8) Computer supplies 308 - 308 392 84 Continued on. the followiiag page... Financial Section 57 r THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budget and Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Building maintenance supplies $ 764 $ - $ 764 $ 1,000 $ 236 ' l Furniture maintenance i supplies 271 - 271 300 29 Irrigation supplies - - - 1,450 1,450 - Machinery & equipment supplies 729 - 729 1,000 271 Fertilizers - - - 165 ] 65 Chemicals 100 - 100 100 - Custodia] supplies 1,310 - 1,310 1,265 (45) Photocopies & reproducing 892 - 892 945 53 _ Refreshments & supplies 597 - 597 600 3 ~ j Membership & dues 445 - 445 473 28 Conference & seminars 200 - 200 200 - Training & education 974 - 974 975 1 Capital outlay: Construction & major renovation; 6,769 (6,395) 374 5,000 4,626 Furniture & fixtures 800 - 800 800 - Books & publications 55,496 - 55,496 55,600 104 Audio book collection 1,931 - 1,931 2,000 69 Video cassette 4,148 - 4,148 4,150 2 Total Library 531,925 (3,395) 528,530 601,828 73,298 ` Recreation: 1 Personal services: Executive salaries 52,444 - 52,444 52,357 (87) L Regular pay 105,315 - 105,315 109,118 3,803 Longevity pay 3,900 - 3,900 3,900 - Certification pay - - - 1,000 1,000 Part-time pay 94,244 - 94,244 98,649 4,405 Holiday gifts 500 - 500 500 - FICA 19,277 - 19,277 19,235 (42) Pension-general employees 16,243 - ] 6,243 16,243 - Health insurance 11,915 - 11,915 11,638 (277) Life insurance 884 - 884 884 - l LTD insurance 650 - 650 625 (25) ~ J Worker's compensation 15,148 - 15,148 15,]48 - Operating expenses: Physical exams - - - 5 5 Travel 3,369 - 3,369 3,360 (9) Telephone 10,148 - 10,]48 ] 1,500 1,352 Electricity 73,944 - 73,944 78,000 4,056 Water and sewer 9,722 - 9,722 9,700 (22) Solid waste disposal 1,889 - 1,889 2,500 611 Co~ztinuecl on the following page... 58 Financial Section , THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenditures and Other Financing Uses - Budgetand Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) R&M building & grounds $ 2,538 $ - $ 2,538 $ 2,540 $ 2 R&M furniture & equipment 1,000 - 1,000 1,010 10 R&M PA & communication 1,744 2,303 4,047 4,800 753 Printing & binding 120 - 120 150 30 Employee relations 479 - 479 800 321 Advertising 263 - 263 350 87 Trophies, awards & prizes 67 - 67 100 33 Office supplies 2,261 - 2,261 2,260 (1) Photo supplies 26 - 26 200 174 Building maintenance supplies 16,224 - 16,224 16,150 (74) Machinery & equipment supplies 1,891 - 1,891 1,970 79 Auto parts supplies 545 - 545 730 185 Nets & tapes 149 - 149 460 311 Playground supplies 1,287 - 1,287 1,900 613 Arts & crafts supplies 3,187 - 3,187 3,200 13 Medical & safety supplies 332 - 332 290 (42) Custodial supplies 6,768 - 6,768 6,700 (68) Gas, oil & lubricants 910 - 910 1,060 150 Refreshments & supplies 155 - 155 250 95 Uniforms & shoes 490 - 490 1,000 510 Membership & dues 340 - 340 485 145 Conference & seminars 900 - 900 850 (50) Training & education 94 - 94 400 306 . Capital outlay: Automotive 21,682 (21,682) - - - Playground & outside equipment 37,267 (1,682) 35,585 38,700 3,115 Furniture & fixtures 5,341 3,258 8,599 8,600 1 Machinery and equipment 370 - 370 500 130 Total Recreation 526,022 (17,803) 508,219 529,817 21,598 Special Events: Operating expenses: Music & talent 1,350 - 1,350 1,350 - Rental-equipment 500 - 500 500 - Public events 57,687 - 57,687 58,300 613 Employees' summer outing 5,383 - 5,383 5,450 67 Furniture & fixture supplies 1,281 - 1,281 1,500 219 Refreshments & supplies 1,259 - 1,259 1,200 (59) Total Special Events 67,460 - 67,460 68,300 840 Total leisure services 1,125,407 (21,19i~) 1,104,209 1,199,945 95,736 Continued on the following page... Financial Section 59 rl THE VILLAGE OF NORTH PALM BEACH, FLORIDA i Schedule of Expenditures and Other Financing Uses - J Budget and Actual (Budgetary Basis) -General Fund (Continued) Year Ended September 30, 2000 Actual Encumbrances on Variance (Prior Year) Budgetary Revised Favorable Actual Current Year Basis Budget (Unfavorable) Other: Petroleum site rehabilitation: ` j Emergency gas lea'; $ 2,500 $ (2,500) $ - $ - $ - ~ Council contingency: Village manager contingency 260 - 260 1,1.00 840 ~ j Council contingency - - - 42,597 42,597 iI 'I Insurance: ~ Reserve-group health 330,000 - 330,000 250,000 (80,000) ,- Benefits and awards: Reserve-miscellaneous 13,075 - 13,075 20,000 6,925 Reserve-raises and benefits 27,412 - 27,412 27,355 (57) Reserve-accrued benefits 56,414 - 56,414 60,000 3,586 Safety and attendance awards 12,833 - 12,833 12,833 - Performanceraises - - - - - ~ l Total other 442,494 (2,500) 439,994 413,885 (26,109) J Debt service: Debt service principal 488,276 - 488,276 474,780 (13,496) Debt service interest 277,021 - 277,021 284,153 7,132 Total debt service 765,297 - 765,297 758,933 (6,364) 1 Total expenditures 10,136,172 18,428 10,154,600 10,571,306 416,706 J{ Other financing uses: Transfer to capital projects fund 48,290 - 48,290 - (48,290) Total expenditures and other financing uses $ 10,184,462 $ 18,428 $ 10,202,890 $ 10,571,306 $ 368,416 I ~i _l rj 60 Financial ~ecti®n Enterprise Fund Financial Section 61 Tb€ VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues -Budget and Actual -Country Club Fund Year Ended September 30, 2000 Variance Favorable ; Budget Actual (Unfavorable) Operating revenue: r J Memberships: J Golf: 12PsidPnt ~ 324,000 $ 295,300 ~ (28,700) Nonresident 415,000 397,881 (17,119) ~ .Social.: Resident 1,260 254 (1,006) Nonresident - 457 457 Tennis: Resident 26,400 27,075 675 Nonresident 42,900 41,940 (960) Pool: Resident 16,928 23,541 6,613 1 Nonresident 29,590 37,535 7,945 J Total membership dues 856,078 823,983 (32,095) Sports activities: Golf: Greens fees 277,000 279,764 2,764 ` Golf cart rental 802,000 739,204 (62,796) Locker rentals 3,000 2,837 (163) Driving range 169,000 148,904 (20,096) Golf shop 130,000 83,139 (46,861) 1 Bag room 11,000 11,352 352 J Lessons 8,500 3,639 (4,861) Other 38,750 31,641 ~ (7,109) Tennis: L Guest fees 16,500 24,730 8,230 Court rental 5,000 6,512 1,512 Lease 3,600 3,874 274 1 Other 500 463 (37) Pool: i Daily fees 52,000 40,214 (11,786) Pool rental 18,000 23,221 5,221 Locker rentals 500 104 (396) Lease 3,600 3,874 274 Other 4,000 5,120 1,120 Total sports activities 1,542,950 1,408,592 (134,358) ` ~ Continued on the following page... j ~.1 ri 62 Financial Secti®n THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Revenues -Budget and Actual -Country Club Fund (Continued) Year Ended September 30, 2000 Variance Favorable Budget Actual (Unfavorable) Clubhouse: Food sales $ 30,000 $ 6,002 $ (23,998) Liquor sales 18,400 4,101 (14,299) Facility rental 4,600 - (4,600) Total- clubhouse revenue 53,000 10,103 (42,897) Miscellaneous: Lease income -food and beverage - 25,195 25,195 Discounts earned 300 360 60 Utilities refund -food and beverage 11,000 12,357 1,357 Principal and interest reimbursement - 4,439 4,439 Other 5,200 5,321 121 Total miscellaneous 16,500 47,672 31,1.72 Total operating revenue 2,468,528 2,290,350 (178,178) Nonoperating revenue: Grant revenue - 17,120 17,120 Interest income 70,000 45,619 (24,381) Total nonoperating revenue 70,000 62,739 (7,261) Total revenues $ 2,538,528 $ 2,353,089 $ (185,439) Financial Section 63 r- THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of Expenses -Budget and Actual -Country Club .Fund Year Ended September 30, 200D Variance Favgrable Budget Actual (Unfavorable) Operating expenses: Sports activities: Golf: Golf course maintenance $ 935,969 $ 857,741 $ 78,228 I Golf shop 299,761 263,167 36,94 t Golf carts 198,493 195,739 2,754 Driving range 128,700 i 14,840 13,860 '- Tennis 102,316 99,972 2,344 Pool 193,336 162,803 30,533 Total sports activities 1,858,575 1,694,262 164,313 ~ } Clubhouse: J Food and beverage 48,280 39,766 8,514 Clubhouse grounds and maintenance 431,628 239,131 192,497 Total clubhouse 479,908 278,897 201,011 Administrative and general 402,763 358,066 44,697 I Depreciation - 297,545 (297,545) J Total operating expenses 2,741,246 2,628,770 112,476 Nonoperating expenses: Interest expense - 30,628 (30,628) Loss on disposal of fixed assets 349,750 48,714 301,036 ` Total nonoperating expenses ~ 349,750 79,342 270,408 Total expenses $ 3,090,996 $ 2,708,112 $ 382,884 l J ~l ~_l ~l ~J 64 Financial Section ~I J Trust Funds Financial Section 65 THE VILLAGE OF NORTH PALM BEACH, FLORIDA rl Combining Balance Sheet - Trusf and Agency Funds ~ September 30, 2000 Pension Trust Fire and , General Police Employees Officers ~ l Assets ~ i Cash and cash equivalents $ 36,088 $ 802,760 Investments 6,761,464 5,316,541 ~ l Accounts receivable - 12,704 Interest receivable - 35,951 Total assets $ 0`,797,552 $ 6,167,956 ~ j Liabilities and Equity 1 Liabilities: ~- Accounts payable $ 5,437 $ 1,000 Due to others - - Total liabilities 5,437 1,000 Equity: Fund balances: Reserved for employees' r J pension benefits 6,792,11.5 6,166,956 Total equity 6,792,115 6,166,956 Total liabilities & equity $ 6,797,552 $ 6,167,956 i II~ ~1 ~l l ~r 66 Financial Section i ~.1 Agency Funds Manatee Northlake Protection Boulevard Agency Task Force Total $ 209,652 $ 88,522 $ 1,137,022 - - 12,078,005 - - 12,704 - - 35,951 $ 209,652 $ 88,522 $ 13,263,682 $ - $ - $ 6,437 209,652 88,522 298,174 209,652 88,522 304,611 - - 12,959,071 - - 12,959,071 $ 209,652 $ 88,522 $ 13,263,682 Financial Section 67 -~ THE VILLAGE 9F N9RTH PALM REACH, FL9R19A Combining Statement of Plan Net Assets -All Pension Trust Funds September 30, 2000 Pension Trust Fire and i General Police Employees Officers Total ~- Assets Cash and cash equivalents $ 36,088 $ 802,760 $ 838,848 Investments, at fair value 6,761,464 5,316,541 12,078,005 Accounts receivable - 12,704 12,704 , Interest receivable - 35,951 35,951 T®tel assets 5,797,552 5,167,956 12,965,5®8 Liabilities Accounts payable 5,437 1,000 6,437 Net assets held in trust for pension benefits $ 6,792,115 $ 6,166,956 $ 12,959,071 1 l ~~1 ~I ~ L~ 6~ Financial Section THE VILLAGE OF NORTH PALM BEACH, FLORIDA Combining Statement of Changes in Net Plan Assets All Pension Trust Funds Year Ended September 30, 2000 Fire and General Police Employees Officers Total Additions: Contributions: Employer $ 372,744 $ 53,067 $ 425,811 State of Florida - 78,246 78,246 Plan member 50,344 30,732 81,076 Total contributions 423,088 162,045 585,133 Investment income: Interest 969 191,365 192,334 Dividends 223,993 47,144 271,137 Net appreciation in fair value of investments 564,867 241,305 806,172 Total investment income 789,829 479,814 1,269,643 Total additions 1,212,917 641,859 1,854,776 Deductions: Administration 68,681 43,399 112,080 Benefits 449,771 17,023 466,794 Total deductions 518,452 60,422 578,874 Net increase 694,465 581,437 1,275,902 Net assets held in trust for pension benefits, beginning of year 6,097,650 5,585,519 11,683,169 Net assets held in trust for pension benefits, end of year $ 6,792,115 $ 6,166,956 $ 12,959,071 Financial Section 69 r~ TH€ VILLAGE OF NORTH PALM B€ACH, FLORIDA ~ 1 Combining Statement of Changes in Assets and Liabilities -All Agency Funds J Year Ended 09/30/2000 balance balance Octob?r 1, Se~te!~I?er 30, ~ 1999 Additions Deletions 2000 Manatee Protection Agency r Assets: ~ Cash and cash equivalents $ - $ 209,652 $ - $ 209,652 Llal?ilities; r Due to others $ - $ 209,652 $ - $ 209,652 ~ Nortfilake Bouie~ard Task Force ` ' Assets: 1 Cash and cash equivalents $ - $ 125,772 $ 37,250 $ 88,522 Liabilities: Due to others $ - $ 125,772 $ 37,250 $ 88,522 Totals -All Agency Funds Assets: Cash and cash equivalents $ - $ 335,424 $ 37,250 $ 298,174 Liabilities r 1 Due to others $ - $ 335,424 $ 37,250 $ 298,174 1 1 ~l ~- J ~l l ~J l ~1 17 70 Financial section General Fixed Assets Account Group Financial Section 71 r r 1 r~ r~ -l 1 This page intentionally left blank. `1 l ~ 72 Financial Section THE VILLAGE OF NORTH PALM BEACH, FLORIDA Schedule of General Fixed Assets - By Source September 30, 2000 General fixed assets: Land and improvements $ 2,055,889 Buildings and improvements 8,599,783 Equipment 3,543,753 Library books and equipment 838,997 Total general fixed assets $ 15,038,422 Investment in general fixed assets by source: General fund $ 6,966,642 Capital projects fund 8,071,780 Total investment in general fixed assets $ 15,038,422 Financial Section 73 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA r Schedule of General Fixed Assets - Sy Function and Activity September 30, 2000 Land and Buildings and Improvements Improvements , General government: Village manager $ - $ - Finance - - Village clerk - - General services 89,775 353,759 Total general government 89,775 353,759 ~ Public safety: j Police department ].,228,766 4,255,790 J Fire department - - Emergency medical department - - Total public safety 1,228,766 4,255,790 Public works: Code enforcement 12,500 172,068 ` Facilities maintenance - - Sanitation -solid waste - - Street maintenance - 23,227 Vehicle maintenance - 564 J Park maintenance - - Total public works 12,500 195,859 Culture/recreation: J Library - 370,468 ~ Recreation 724,848 3,423,907 Total culture/recreation 724,848 3,794,375 $ 2,055,889 $ 8,599,783 1 ~l 74 f=inancial Section Library Books Equipment and Equipment Total $ 12,856 $ - $ 12,856 53,687 - 53,687 16,332 - 16,332 182,383 - 625,917 265,258 - 708,792 812,537 - 6,297,093 888,597 - 888,597 323,663 - 323,663 2,024,797 - 7,509,353 75,292 - 259,860 85,890 - 85,890 573,236 - 573,236 163,515 - 186,742 31,797 - 32,361 133,196 - 133,196 1,062,926 - 1,271,285 - 838,997 1,209,465 190,772 - 4,339,527 190,772 838,997 5,548,992 $ 3,543,753 $ 838,997 $ 15,038,422 Financial Section 75 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA r ] Schedule of Changes in General Fixed Assets - Sy Function and Activity Year Ended September 30, 2000 Balance ®ctober 1, 1999 Additions General government: Village manager $ 15,856 $ - Finance 58,745 2,795 Village clerk 15,332 - ~ General services 88,414 119,696 General government land 89,775 - ~ , General government buildings and improvements 357,006 - , Total general government 626,128 122,491 Public safety: Police department 951,404 118,171 Fire department 881,672 14,186 Emergency medical department 321,504 6,117 Public safety land 1,228,766 - Public safety buildings and improvements 4,255,790 - Total public safety 7,639,136 138,474 Public works: Code enforcement 93,320 53,706 ` ~ 'i Facilities maintenance 82,331 12,878 Sanitation -solid waste 513,798 171,717 Street maintenance 138,059 60,753 Vehicle maintenance 30,990 3,621 Park maintenance 134,395 - Public service land 12,500 - Public service buildings and improvements 171,254 2,586 ` 1 Total public works 1,176,647 305,261 J Culture/recreation: _ l Library books and equipment 790,787 81,180 J Library building and improvements 364,073 6,395 Recreation i36,60D 58,994 Recreation land 724,848 - Recreation buildings and improvements 3,429,407 - Total culture/recreation 5,445,715 146,569 ` Total general fixed assets $ 14,887,626 $ 712,795 i ~j 76 Financial Section ~ ' -~ Balance September 30, Deletions Transfers 2000 $ - $ (3,000) $ 12,856 8,490 637 53,687 _ - 16,332 25,727 - 182,383 _ - 89,775 3,247 - 353,759 37,464 (2,363) 708,792 212,480 (44,558) 812,537 4,823 (2,438) 888,597 3,277 (681) 323,663 _ - 1,228,766 _ - 4,255,790 220,580 (47,677) 7,509,353 120,274 48,540 75,292 - (9,319) 85,890 112,279 - 573,236 12,070 - 186,742 2,250 - 32,361 20,293 19,094 133,196 _ - 12,500 1,772 - 172,068 268,938 58,315 1,271,285 34,470 1,500 838,997 _ - 370,468 4,822 - 190,772 _ - 724,848 5,500 - 3,423,907 44,792 1,500 5,548,992 $ 571,774 $ 9,775 $ 15,038,422 Financial Section 77 r~ ( 1 1 r r ~I 1 r ~l [1 This page intentionally left blank. 1 -1 ~1 .3 78 Financial Secti®n L STATISTICAL SECTION i I I I I I i i THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table I General Governmental Expenditures by Function Last Ten Fiscal Years Fiscal General Public Public Leisure Year Government Safety Services Services Other Total 1991 $ 745,053 $ 2,146,398 $ 2,135,571 $ 614,134 $ 270,119 $ 5,911,275 1992 752,735 2,265,527 2,065,833 650,229 175,093 5,909,417 1993 824,006 2,333,455 2,064,082 698,655 178,898 6,099,096 1994 894,986 2,286,130 2,228,019 718,583 174,121 6,301,839 1995 876,637 2,684,.149 2,316,032 718,867 188,614 6,784,299 1996 969,300 2,985,104 2,542,787 829,142 138,020 7,464,353 1997 937,571 3,424,137 2,541,538 793,442 362,778 8,059,466 1998 948,819 2,940,800 2,598,101 874,043 274,236 7,635,999 1999 1,493,117 3,166,443 2,618,906 926,079 715,355 8,919,900 2000 1,377,081 3,311,057 3,114,836 1,125,407 1,207,791 10,136,172 Note: The above expenditures of the general fund include capital outlay and debt service payments for capital leases budgeted in the general fund. Statistical Section 81 r~ THE VILLAGE OF NORTH PALM REACH, FLORIDA r General Governmental Revenues by Source Last Ten Fiscal Years Licenses Charges r Fiscal and Inter for Year Taxes Permits governmental Services 1991 $ 4,157,487 $ 273,703 $1,012,911 $ 277,819 1992 4,180,223 266,916 932,334 231,345 , 1993 4,617,122 257,046 964,903 218,826 J 1994 4,976,695 317,642 1,030,089 195,332 1 1995 5,417,516 748,676 1,071,940 246,016 1996 5,429,150 453,912 1,352,609 219,447 1997 5,627,038 366,031 1,172,716 275,100 1 1998 6,116,651 509,055 1,379,295 342,863 1999 6,528,207 543,650 1,144,583 357,336 2000 6,794,249 756,419 1,273,110 437,811 Note: The above revenues are for the general fund. ~1 i J~ I +i 82 Rtatistical ~ecti®n Table 11 Fines and Forfeitures Interest Miscellaneous Total $105,923 $146,626 $ 67,316 $ 6,041,785 115,911 98,657 82,284 5,907,670 111,004 72,395 76,788 6,318,084 73,423 90,706 116,1.26 6,800,013 97,993 191,427 96,630 7,870,198 97,886 248,700 93,635 7,895,339 156,281 201,759 129,890 7,928,815 128,140 213,637 96,113 8,785,754 119,185 239,372 95,893 9,028,226 149,690 290,413 139,419 9,841,111 Statistical Section 83 r~ ~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table III ~ ) Property Tax Levies and Collections 1 Last Ten Fiscal Years Percent Delinquent Total Percent r Fiscal Totai Current Tax of Levy Tax Tax Collected ~ Year Tax Levy Collections Collected Collections Collections To Tax Levy 1991 $ 2,825,505 $ 2,710,296 95.92% $ 7,592 $ 2,717,888 96.19% r 1992 2,935,533 2,793,999 95.18% 11,355 2,805,354 95.57% 1993 3,281,385 3,141,952 95.75% 7,090 3,149,042 95.97% 1994 3,454,871 3,335,241 96.54% 984 3,336,225 96.57% 1995 3,780,663 3,646,758 96.46% 78 3,646,836 96.46% ~ 1996 3,704,613 3,577,517 96.57% 6,187 3,583,704 96.74% 1997 3,701,075 3,574,562 96.58% 4,379 3,578,941 96.70% " j 1998 4,105,193 3,961,574 96.50% 5,861 3,967,435 96.64% J 1999 4,327,943 4,166,035 96.26% 6,721 4,]72,756 96.41% 2000 4,512,027 4,335,668 96.09% 23,074 4,358,742 96.60% Source: Palm Beach County Property Appraiser ,rl ~1 r1 ~1 ~J i `1 ~ ~J h ~J 84 Statistical Section THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table IV Assessed Value of Taxable Property Last Ten Fiscal Years Assessed Values Fiscal Real Personal Year Property Property Total 1991 $ 643,922,525 $ 29,647,858 $ 673,570,383 1992 657,663,518 30,248,609 687,912,127 1993 677,090,383 29,584,585 706,674,968 1994 675,501,648 29,573,967 705,075,615 1995 690,876,303 29,249,922 720,126,225 1996 694,725,948 31,668,828 726,394,776 1997 700,039,002 31,398,755 731,437,757 1998 724,341,1.93 35,879,7]7 760,220,9]0 1999 736,890,024 35,742,548 772,632,572 2000 767,696,404 36,071,964 803,768,368 Note: The basis of assessed value is approximately one hundred percent (100%) of actual value. For each fiscal year ending September 30, property is valued as of January 1st of the preceding calendar year. Source: Palm Beach County Property Appraiser Statistical Section 85 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table V Property Tax Rates -Direct and Overlapping Governments Last Ten Fiscal Years (Per $1,000 of the Assessed Value) ~- j Village Palm Beach Of North County Fiscal Palm Special School Palm Beach Year Beach Districts District County Total 1991 4.20 2.076 9.293 4.831 20.400 ~ i 1992 4.26 2.297 9.785 4.644 20.986 i 1993 4.65 2.378 9.603 4.622 21.253 1994 4.SC 2.43 10.063 4.JJV 21.966 1995 5.25 2.448 10.185 4.519 22.402 1996 5.10 2.485 9.797 4.519 21.901 1997 5.06 2.286 9.788 4.519 21.653 ~ i 1998 5.40 2.360 9.557 4.867 22.184 J 1999 5.60 2.234 9.682 4.858 .22.374 2000 5.60 2.262 8-.918 4.936 21.716 Source: Palm Beach County Property Appraiser. l `J ~J ~1 , L ~1 86 Statistical Section THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table VI Computation of Direct and Overlapping Bonded Debt General Obligation Bonds September 30, 2000 Percentage Amount Applicable to Applicable to Name of Total The Village of The Village of Governmental Unit Outstanding North Palm Beach t'j North Palm Beach Palm Beach County $ 205,855,000 1.19% $ 2,449,675 Palm Beach County School District 243,125,000 1.19% 2,893,188 Village of North Palm Beach - 100% _ Total $ 448,980,000 $ 5,342,863 Estimated based on 1999 Ratio of Assessed Taxable Values Source: Palm Beach County Property Appraiser School Board of Palm Beach County, Finance Department Village of North Palm Beach Statistical Section 87 r~ r~ 1 rj 1 1 "l f_~ t This page intentionally left blank. 88 Statistical Section L- THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table VII Computation of Legal Debt Margin September 30, 2000 The Village Charter and the Constitution of the State of Florida, Florida State Statute 200.181, does not provide for a legal debt limit. Statistical Section 89 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA ~ l Debt Related Statistics J Schedule of Revenue Bond Coverage General and Enterprise Funds Last Ten Fiscal Years Net Revenue Available Fiscal Gross Expenditures/ For Debt Year Revenue Expenses Service 1991 $ 7,889,612 $ 7,208,772 $ 680,840 1992 7,764,064 7,289,253 474,811 r ~ 1993 8,352,291 7,713,144 639,147 l 1994 9,189,523 8,415,414 774,109 1 1995 10,167,60 8,829,772 1,337,788 1996 * * * 1997 * * * 1998 1999 * * * 2000 Source: Village of North Palm Beach 1 Represents total General Fund and Country Club expenditures/expenses exclusive of J depreciation, debt service, and loss on disposal of fixed assets. * Revenue bonds were paid in full in 1995. ~1 -1 L. I~ ~ ) I3 v ~o a7tat0.~t~~ial S~. rit0on i 1_ Table VIII Debt Service Requirements Fiscal Year Principal Interest Total Coverage 1991 $ 125,000 $ 43,225 $ 168,225 4.05 1992 140,000 34,750 174,750 2.72 1993 150,000 25,500 175,500 3.64 1994 150,000 15,562 165,562 4.68 1995 150,000 5,250 155,250 8.62 1996 * * * 1997 * * * 1998 * * * 1999 * * * * 2000 * * * Statistical Section 91 i THE VILLAGE OF NORTH PALM B€ACb, I=LORIDA Table IX r j Property Value, Construction, and Bank Deposits J Last Ten Fiscal Years Commercial Residential Proper#y Value Construction Construction Bank Fiscal ®eposits Year Commercial Residential Value Value (000) r 1991 $ 109,466,830 $ 534,455,695 $ 719,600 $ 1,242,198 $ 8,153,495 t i 1992 113,189,265 544,474,253 822,310 2,212,962 7,955,346 ~ 1993 99,562,514 568,481,487 1,076,515 1,034,129 7,72,7,879 1994 98,698,619 570,810,390 747,820 1,101,790 8,196,595 1995 93,576,663 541,319,023 307,650 18,901,801 9,055,476 1 1996 91,959,700 595,990,486 4,434,050 4,032,198 9,545,424 1997 92,371,112 603,600,525 3,759,496 2,194,016 9,911,930 1998 97,758,105 620,048,032 3,769,950 10,893,857 10,715,6] 0 ` ~ 1999 109,456,299 625,385,715 11,698,194 5,337,681 13,283,898 2000 113,851,156 653,605,011 * 28,219,296 12,711,003 Estimated Sources: Village of North Palm Beach ` Palm Beach County Property Appraiser Office Florida Bankers Association. Data as of September 30 of the preceding year. * Information not available. 1 Gi a 92 statistical section ' i J THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table X Principal Taxpayers January 1, 2000 Percentage ~ 999 of Total Assessed Assessed Taxpayer Valuation Valuation Intervest Crystal Tree $ 9,387,971 1 22% Olen Company 9,327,828 1.21% Olen Residential Realty 6,571,968 0.85% Greater Fla Inv Co. x,840,000 0.76% Transcontinental Atrium, Inc. 4,800,000 0.62% WCI Communities Limited Partnership 4,563,478 0.59% Pulte Home Corporation 4,207,200 0.54% Amoco Oil Co. 3,706,713 0.48°10 Roschman, M. Elaine TR 3,300,000 0.43% Morse, Edward J., Inc. 3,132,969 0.41 % Old Port Cove Dev. 3,100,000 0.40% $ 57,938,127 6.28% Source: Palm Beach County Property Appraiser. Statistical Section 93 r~ THE VILLAGE OF NORTH PALM BEACH, FLORIDA Table XI ~ j Miscellaneous Statistics J September 30, 2000 Date of incorporation: August 13, 1956 r Form of Government Council -Manager Area (land and waterways) 5.18 square miles Miles of streets 36.00 Number of street lights 425 Population 12,582 r 1 Fire Protection 1 1`lumber of stations 1 Number of firemen and officers 5 Police/EMS Protection Number of stations 2 Number of policemen and officers 56 Number of EMS officers 12 L Building Permits Building permits -new 111 Building permits -additions 140 l Recreation/Culture 1 Number of parks 4 Public tennis courts 5 Number of marinas 1 Number of libraries 1 i Number of volumes 44,686 Country Club 1 ` Golf course 1 Driving range 1 Swimming pool 1 Tennis courts 10 ` l Employees 229 J Source: Village of North Palm Beach ~J ~I ~_J "i rl 94 Statistical Section ~ ~I REQUIRED .REPORTS f a~s,iaz~ ~o. Certified Public Accountants REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida We have audited the general purpose financial statements of the Village of North Palm Beach, Florida, as of and for the year ended September 30, 2000, and have issued our report thereon dated January 10, 2001. We conducted our audit in accordance with generally accepted auditing standards and the stan- dards applicable to financial audits contained in Goverimze~zt Auditnig Sta~zdards, issued by the Comp- troller General of the United States. Compliance As part of obtaining reasonable assurance about whether the Village of North Palm Beach, Florida's general purpose financial statements are free of material misstatement, we performed tests of its compli- ance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, provid- ing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Gover•~mae~it Auditing Standards. However, we noted certain im- material instances of noncompliance that we have reported to management of the Village of North Palm Beach, Florida in a separate letter dated January 10, 2001. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Village of North Palm Beach, Florida's inter- nal control over financial reporting in order to determine our auditing procedures for the purpose of ex- pressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial report- ing would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstate- ments in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their as- signed functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended for the information of management and members of the Village Council and is not intended to be and should not be used by anyone other than these specified parties. Haas Diaz & C~. U Certified Public Accountants January 10, 2001 1601 Belvedere Road Suite 200, East West Palm Beach, FL 33406-1595 (~61 j 686--1551 Fax: (561) 471-1210 Required Reports 97 i r i i i i li ji i i i i i i i Certified Public Accountants MANAGEMENT LETTER The Honorable Mayor and Members of the Village Council The Village of North Palm Beach, Florida We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for the year ended September 30, 2000, and have issued our report thereon dated January 10, 2001. We have issued our Independent Auditor's Report On Compliance and on Internal Control Over Finan- cial Reporting dated January 10, 2001. Disclosures in that report, if any, should be considered in con- junction with this management letter. We conducted our audit in accordance with generally accepted auditing standards, and Gover~znzent Au- diting Standards issued by the Comptroller General of the United States. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554 (1) (e) 1. a) require that we comment as to whether or not inaccuracies, shortages, defalcations, fraud, and violations of laws, rules, regulations, and contrac- tual provisions reported in the preceding annual financial audit report have been corrected. There were no such instances disclosed in the preceding-annual financial audit report. As required by the Rules of the Auditor General (Section 10.554 (1) (e) 2.), the scope of our audit in- cluded areview of the provisions of Section 218.503 (1), Florida Statutes, "Determination of Financial Emergency." In connection with our audit, we determined that Village of North Palm Beach, Florida is not in a state of financial emergency as a consequence of the conditions described by Section 218.503 (1), Florida Statutes. As required by the Rules of the Auditor General (Section 10.554 (1) (e) 3.), we determined that the an- nual financial report for Village of North Palm Beach, Florida for the year ended September 30, 2000, was filed with the Department of Banking Finance pursuant to Section 218.32 (1) (a), Florida Statutes, and is in agreement with the annual financial audit report for the year ended September 30, 2000. The Rules of the Auditor General (Section 10.554 (1) (e) 4.) require that we comment as to whether or not the Village complied with Section 218.415, Florida Statutes, regarding the investment of public funds. Our observations related to the Village's compliance with Chapter 218.415 are noted below. 1601 Belvedere Koad Suite 200, East West Palm Beach, PL. 33406-1595 (561) 686-1551 Fax: (561) 471-1210 Required Reports 99 r The Rules of Auditor General (Sections 10.554 (1) (e) 6., 7., 8.) require disclosure in the management letter of r the following matters if not already addressed in the auditor's report on compliance and internal control over fi- nancial reporting: recommendations to improve financial management, accounting procedures, and internal con- trols; recommendations addressing deteriorating financial conditions; violations of laws, rules, regulations and r contractual provisions; illegal or improper expenditures vrhich may or may not materially affect the financial , statements; improper or inadequate accounting procedures; failures to properly record financial transactions; and other inaccuracies, shortages, defalcations and instances of fraud discovered by the auditor. Our audit disclosed the following matters required to be. disclosed by Rules of Auditor General (Sections 10.554 (1) (e) 6., 7., 8.). LOCAL GOVERNMENT INVESTMENT POLICIES Observation Chapter 218.415, Florida Statues states that investment activity by a unit of local government must be consistent with a written investment plan adopted by the governing body. The investment policy applies to funds under the control of a unit of local government in excess of those required to meet current expenses. The investment policy ~ ~ shall not apply to pension funds. A unit of local government may elect not to adopt a written investment policy in accordance with the provision of ` Chapter 2l 8.415. If this election is made, the governmental agency may invest any surplus public funds in the following investment types: 1. The Local Government Surplus Funds Trust Fund, or any intergovernmental investment pool authorized ` pursuant to the Florida Interlocal Cooperation Act. 2. Securities and Exchange Commission registered money market funds with the highest credit quality rat- ` ing from a nationally recognized rating agency. 3. Interest-bearing time deposits or savings accounts in qualified public depositories. 4. Direct obligations of the US. Treasury. We determined the following during our review of investment activity for the year ended September 30, 2000. 1. The Village's charter sets forth the allowable instruments in which funds may be invested. ` 1 2. The Village's investment activity during the year consisted of funds on deposit with the Local Govern- J ment Surplus Funds Trust Fund and transactions pursuant to a repurchase agreement. The Village was not in compliance with Chapter 218.415 because of its repurchase agreement transactions. These transactions are not contemplated in the allowable investments listed in the charter, and they do not meet the alternative investment guidelines of Chapter 218.415(10. ` l Recommendation J We recommend that the Village adopt an investment policy pursuant to the guidelines in Chapter 218.415 if fu- ture investment activity will include repurchase agreements. If the policy is not adopted, the alternative invest- ment guidelines should be followed. ~ Management's Response ~- Staff is in process of revising the existing policy to satisfy the Florida Statutes. ' ' ~1 108 Required Reports 1 INVESTMENT MANAGEMENT POLICY -FIRE AND POLICE RETIREMENT FUND Observation Investment management policies and guidelines were established for the Fire and Police Retirement Fund. The policy provides that the investment manager is empowered to exercise complete discretion in security selection within certain limitations. We examined the portfolio to determine compliance with the limitations and deter- mined that the investment manager was not in compliance with the guidelines for fixed income securities. The policy states that a minimum of 50% of the portfolio cost will be committed to fixed income securities. At Sep- tember 30, 2000, the portfolio cost committed to fixed income securities was 41 Recommendation We recommend that the Board of Trustees direct the investment managers to adjust the composition of invest- ments in the portfolio so that it is in compliance with the guidelines set forth in the investment policy. Management's Response This comment will be forwarded to the Board of Trustees for the Fire and Police Retirement Fund and the Village Council for resolution. This report is intended for the information of management and members of the Village Council and is not in- tended to be and should not be used by anyone other than these specified parties. Haas Diaz & Co. V Certified Public Accountants January 10, 2001 Required Reports 101 ~ r , ~ ~ , r f r , ~ -