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The Village of
North Palm Beach, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2016
Prepared by:
Finance Department
Samia Janina
Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letterof Transmittal..................................................................................................................................... i
PrincipalVillage Officials....................................................................................................................... viii
OrganizationalStructure..............................................................................................................................ix
GFOA Certificate of Achievement for Excellence in Financial Reporting..................................................x
FINANCIAL SECTION
IndependentAuditors' Report ....................................................................................................................... I
Management's Discussion and Analysis.......................................................................................................4
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statementof Net Position.....................................................................................................................14
Statementof Activities.........................................................................................................................15
Fund Financial Statements:
Balance Sheet - Governmental Funds..................................................................................................17
Reconciliation of the Balance Sheet — Governmental Funds
to the Statement of Net Position...........................................................................
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds.................................................................
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities
..........................18
..........................19
.............................
Statement of Net Position - Proprietary Fund...............................................................................
.....20
.....21
Statement of Revenues, Expenses, and Changes in Net
Position- Proprietary Fund............................................................................................................22
Statement of Cash Flows - Proprietary Fund.......................................................................................23
Statement of Fiduciary Net Position - Fiduciary Funds.......................................................................24
Statement of Changes in Fiduciary Net Position — Fiduciary Funds....................................................25
Notes to the Basic Financial Statements.....................................................................................................26
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress — Other Postemployment Benefits........................................................73
Schedule of Changes in Net Pension Liability — General Employees Retirement Fund.......................74
Schedule of Changes in Net Pension Liability — Fire and Police Retirement Fund..............................75
Schedules Contributions and Investment Returns — Retirement Funds...............................................76
Notes to the Schedule of Contributions................................................................................................77
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund.................................................................................................78
Notes to the Budgetary Required Supplementary Information............................................................79
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
TABLE OF CONTENTS
(Continued)
OTHER SUPPLEMENTARY INFORMATION:
Schedule of Departmental Expenditures— Budget and Actual — General Fund....................................80
Combining Balance Sheet — Nonmajor Governmental Funds..............................................................83
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
NonmajorGovernmental Funds--------------------------------------------------------------------------------------------------------84
Combining Statement of Net Position — Pension Trust Funds..............................................................85
Combining Statement of Changes in Fiduciary Net Position — Pension Trust Funds ...........................86
Combining Statement of Agency Net Position....................................................................................87
Combining Schedule of Changes in Agency Net Position....................................................................88
Schedule of Revenues and Departmental Expenses —
Budget and Actual — Country Club Fund — Budgetary Basis............................................................89
STATISTICAL SECTION
NetPosition by Component-----------------------------------------------------------------------------------------------------------------90
Changesin Net Position-----------------------------------------------------------------------------------------------------------------------91
Fund Balances, Governmental Funds---------------------------------------------------------------------------------------------------93
Changes in Fund Balances, Governmental Funds................................................................................94
Net Assessed Value and Estimated Actual Value of Taxable Property...............................................96
Property Tax Rates - Direct and Overlapping Governments.................................................................97
Principal Property Taxpayers---------------------------------------------------------------------------------------------------------------98
Property Tax Levies and Collections---------------------------------------------------------------------------------------------------99
Ratios of Outstanding Debt by Type---------------------------------------------------------------------------------------------------100
Direct and Overlapping Governmental Activities Debt......................................................................101
Pledged -Revenue Coverage----------------------------------------------------------------------------------------------------------------102
Demographic and Economic Statistics------------------------------------------------------------------------------------------------103
PrincipalEmployers---------------------------------------------------------------------------------------------------------------------------104
Full -Time Equivalent Village Government Employees by Function..................................................105
Operating Indicators by Function/Program........................................................................................106
Capital Asset Statistics by Function/Program.....................................................................................107
OTHER REPORTS
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards ................................108
Management Letter in Accordance with the Rules of the Auditor General of the
Stateof Florida-------------------------------------------------------------------------------------------------------------------------------110
Independent Accountant's Report on Compliance with
Section 218.415, Florida Statutes----------------------------------------------------------------------------------------------------113
INTRODUCTORY SECTION
March 23, 2017
THE VILLAGE OF
NORTH PALM BEACH
"THE BEST PLACE TO LIVE UNDER THE SUN"
The Honorable Mayor, Members of the Village Council and Residents
Village of North Palm Beach, Florida
The Finance Department and Village Manager's Office are pleased to submit the Comprehensive
Annual Financial Report (CAFR) for the Village of North Palm Beach, Florida for the fiscal year ended
September 30, 2016.
This report is published to provide the Village Council, Village staff, our citizens, our lenders, and other
interested parties with detailed information concerning the financial condition and activities of the
Village government. Responsibility for both the accuracy of the presented data and the completeness
and fairness of the presentation, including all disclosures, rests with the Village.
To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are
organized in a manner designed to fairly present the financial position and results of operations of the
Village as measured by the financial activity of its various funds. We also believe that all disclosures
necessary to enable the reader to gain the maximum understanding of the Village's financial affairs
have been included.
THE REPORT
Nowlen, Holt & Miner, P.A., Certified Public Accountants, have issued an unmodified ("clean") opinion
on the Village of North Palm Beach's financial statements for the year ended September 30, 2016. The
independent auditor's report is located at the front of the financial section of this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report
and provides a narrative, overview, and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
The CAFR's role is to assist in making economic, social, and political decisions and in assessing
accountability to the citizenry by:
• comparing actual financial results with the legally adopted budget, where appropriate;
• assessing financial condition and results of operations;
• determining compliance with finance -related laws, rules and regulations; and
• evaluating the efficiency and effectiveness of Village operations.
501 U.S. Highway 1, North Palm Beach, FL 33408-4902 * (561) 841-3380 * Fax (561) 848-3344
VILLAGE PROFILE
The Village
The Village of North Palm Beach is primarily a residential community, having been incorporated as a
political subdivision of the State of Florida in 1956. The registered population of the Village is
approximately 12,177, which increases to approximately 18,000 during the winter months by residents
who list their northern homes as their official place of residence. Residents are generally in the middle
to upper income brackets.
Located in the northeastern quadrant of Palm Beach County, Florida, the Village is known for its
abundance of waterfront property (lakes, canals, and the Atlantic Ocean) as well as other assets:
Country Club with a golf course, driving range, pool, and tennis courts; four parks; marina; library;
police and fire rescue stations; and a public elementary school.
The governing body of the Village consists of a five -member Village Council, each of whom is elected
to two-year overlapping terms. The Mayor is selected by majority vote of the Council and serves for a
term of one year. Day -to- day affairs of the Village are under the leadership of the Village Manager who
is appointed by the Council.
FINANCIAL DATA
Financial Reporting System and Budgetary Controls
The Village's financial records for its general governmental operations are maintained on the modified
accrual basis, which means that revenues are recorded when available and measurable and
expenditures are reported when goods and services are received and the related liabilities are incurred.
Financial reporting for its Enterprise Fund (i.e., the Country Club operation) is presented using the full
accrual basis of accounting required by Generally Accepted Accounting Principles (GAAP) for its
annual financial report. The Country Club annual budget is adopted using a modified accrual basis of
accounting (identical to the general government operations mentioned above) which is consistent with
how general ledger financial records are maintained throughout the year by the Village administration.
In developing and evaluating the Village's financial and accounting system, consideration is given to the
adequacy of internal accounting controls which are designed to provide reasonable, but not absolute,
assurance regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition
and (b) the reliability of financial records for preparing financial statements and maintaining
accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control
should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires
estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the Village's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
The Village of North Palm Beach maintains budgetary controls through the annual budget public
hearing and approval process for GAAP -based budgets. The formal budget approval for each fiscal
year is accomplished in a manner compliant with Florida State Statute 200.065, commonly referred to
as Truth-in-Millage (TRIM).
Budget amendments require Village Council approval at public meetings. Budgetary control is
maintained at the department level within the fund (changed to fund level in 2013) by the encumbrance
of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders
resulting in an overrun of approved departmental appropriations within the fund are not released until
additional appropriations are made available. Encumbered amounts lapse at year-end; however, they
are re -appropriated as part of the following year's budget.
ECONOMIC OUTLOOK
Property Values
The Village obtains a major portion of its annual General Fund financial resources (56%) from ad
valorem property taxes. Gross assessed property values increased substantially between the years
2002 through 2006, but slowed significantly in 2007. In years 2008 through 2012, area property values
declined in value, in many instances significantly, as a result of the economic downturn. This
unprecedented decline in property values was exacerbated by the number of properties in various
stages of foreclosure. Both of these real-estate issues have had an adverse impact upon the financial
resources of the Village. However, based on market trends in 2013 as well as in early 2014, it appears
that there is new growth in our community. Both the State and South Florida, in particular, are enjoying
resurgence in real estate activity, which has translated into annual gains in market prices for area
homes.
The Village continues to pursue annexation of surrounding unincorporated areas that complement and
enhance the services and values of our existing community. The focus of Village annexation efforts will
be to provide exemplary municipal services that are revenue "neutral" to both the annexed areas and to
the Village.
Investment Revenues
The economic downturn and softening of the money market have had a significant impact on Village
investment revenues over the past few years. In the short-term, the Village made a conscious decision
to modify its investment strategies towards the Treasury market to better protect and ensure the
availability of the Village's investment balances. This move proved successful in safeguarding Village
investments during this market free fall but impacted the interest/dividend revenues to the Village. The
Village, with the assistance of the Village's Audit Committee, adopted a "revised" Investment Policy
designed to provide safety and liquidity while maximizing investment return(s). The newly adopted
policy provided numerous investment strategies, parameters, and safeguards. The policy additionally
provided for 1/12 of the annual operating budget to be deposited in a liquid interest-bearing account so
as not to impede operations should other funds be temporarily unavailable. The Audit Committee and
staff, along with the Village's Investment Advisor, continue to explore other investment opportunities
that will improve yields in future years while still ensuring the safety of our investments.
Personnel Costs
The Village will continue to face increased financial challenges in the areas of personnel costs for both
salaries and benefits. In past years, several retirement plan amendments were implemented by the
Village and then followed by significant salary adjustments that magnified the impact and cost of the
retirement changes. The impact of these changes as well as the continuous improvement in the
financial markets have had a very positive financial impact on both plans. Due to legislative changes
and catastrophic claims losses, the Village has encountered significant increases in annual health
insurance costs during the past few years. In an attempt to fight the continual rising cost of health care,
the Village transitioned to a semi self-insured health program in 2012, which offers the potential for
possible savings if claims are minimized. For 2017, the Village will continue its focus on Employee
Wellness as a measure to help control health care costs and improve our opportunity for additional
savings from our providers.
The impact of personnel salaries and benefits in the coming years will have a broad and continuing
effect on future Village financing and service priorities in the areas of staffing, public services, and
public projects. Approximately 75% of the annual budget is allotted for wages and fringe benefits.
INITIATIVES AND FUTURE PROJECTS
The FY2016/2017 budget reflects a renewed commitment and predictable funding for community
infrastructure in areas such as roadways, neighborhood sidewalks, lighting, public buildings, and park
facilities. The Village Council expanded the Capital Improvement Plan (CIP) from a five (5) year plan to
a ten (10) year plan.
The Community Development Department provides Planning and Zoning, Code Compliance and
Building services. The Department processed over 2,000 permits in FY 2016 including building permits,
special events, zoning verification letters, right-of-way and zoning applications. Staff also performed in
excess of 8,400 building and code compliance inspections. The Department continues to strive to
improve its level of services for plan reviews, building inspections, code enforcement and zoning
compliance. The Department will move ahead with the conversion of paper records to electronic
records storage, resulting in a significant savings of staff's time and effort in records retrieval.
The Village adopted a Master Plan in 2016 regarding development and redevelopment over the next
several years. Having in place a viable Master Plan as well as a clear definition of the highest and best
use of properties on U.S. 1 and Northlake Boulevard will encourage developers to invest, culminating in
increased Village revenues. Staff will proceed in actively implementing the Master Plan strategies as
well as undertaking additional planning initiatives to include the Evaluation and Appraisal Report for the
Comprehensive Plan.
The Parks and Recreation Department continues to offer programs for all age groups at each of its six
(6) facilities. Anchorage Park will host diverse events in the upcoming year to include: movies in the
park, food truck nights, 5K races, organized volleyball leagues, the Village's annual fishing tournament,
and Heritage Day. The North Palm Beach Country Club Pool and Tennis facilities plan to offer a wide
variety of leagues, training opportunities and tournaments as well as the July 4t" fireworks program. In
addition, the Department will provide youth sports training and leagues in baseball, soccer, flag football,
volleyball, lacrosse and basketball. The Department will continue to sponsor bus trips throughout the
year, ranging from local day activities to weekend excursions to Key West.
The Public Works Department is tasked with the oversight and management of Village sanitation,
infrastructure, streets, facilities, equipment, and the roadways. This Department plays a major role in
maintaining and expanding the focus on community appearance during the coming year. Public Works
will continue to identify all safety concerns throughout our facilities. We are also analyzing all critical
infrastructure needs in our facilities to determine future project priorities and best maintenance
practices. Public Works will address currently identified infrastructure projects such as drainage
improvements, road maintenance, building of a new country club, and parks improvements in the ten
(10) year Capital Improvement Plan (CIP). Finally, Public Works has been engaged in a year-long
project to convert our sanitation vehicles from rear -loading to front loader capability, which is expected
to improve overall efficiency and decrease the number of Workers' Compensation claims.
u•A
The Police Department has focused on improvements in community policing/neighborhood outreach by
conducting community meetings and high visibility, interactive and accessible -directed patrols. The
Department continues to emphasize the importance of reducing crime in the Village by designing out
crime, utilizing advanced technology to analyze trends that deter future crime locations based on
predictive policing concepts, and crime suppression through Transitional Neighborhood Teams. The
CALEA re -accreditation process is currently in the final phase of the three-year cycle with plans to
continue with the new accreditation cycle beginning in July of 2017. The Police Department budget
includes funding for the purchase/replacement of needed marked patrol vehicles and unmarked
detective vehicles.
The Police Department was ranked #15 of Florida Safest Cities by the National Council for Home
Safety and Security due to a significant decrease in overall crime as well as an increase in our
clearance rate. Our intention is to build upon that success in 2017. The Police Department will seek
available Body Worn Camera grant opportunities and participate in a partnership with The State
Attorney's Office on the Sober Homes Taskforce. Also, the Department will remain involved in the BVP
(Ballistic Vest Program) and FDOT (Florida Department of Transportation) grant opportunities and will
seek to improve and enhance our weapons and tactical training programs for all sworn law enforcement
officers.
Fire Rescue has experienced an annual increase in calls for service since 2011 with the majority (77%)
being medical in nature. We continue to support the annual Hands -Only CPR initiative as a charter
provider. Our fire inspector provides existing business inspections, fire code enforcement, and plans
review and site inspections of new projects. This proactive approach to fire prevention has resulted in
decreased incidents of commercial responses. In FY2017, a 2010 ambulance was replaced with a new,
state-of-the-art unit. Through the 10 -year CIP, we anticipate replacing older apparatus on a rolling
schedule that will allow us to maintain high quality service to our residents and guests.
The Human Resources Department is committed to fostering a work environment that attracts quality
applicants and encourages employees to perform at the highest level in support of the Village's goals
and objectives. In accordance with the Council's direction to "continuously improve the way the Village
operates", the Department strives to promulgate policies and procedures that are consistent across all
administrative functions while remaining current, relevant and compliant with local, state and federal
labor and personnel laws. Having implemented a new performance evaluation system for personnel in
the Fire Rescue Department in 2016, Human Resources plans to expand the pay for performance
initiative to encompass other employee groups in 2017, specifically to include Police Department
personnel. In addition, Human Resources will focus on offering diverse training programs and related
opportunities to staff members in the areas of Business Etiquette and Professionalism, Cultural
Diversity, Conflict Resolution, Office Safety, Progressive Discipline, Drug-Free/Alcohol-Free Workplace,
etc. Lastly, the Department, in its role of managing Workers' Compensation (W/C) cases in conjunction
with the W/C insurance carrier, is working with the Gehring Group's risk management team to seek
solutions for lowering W/C costs and provide a more positive claims experience for all stakeholders.
The Library is focused on building a strategic relationship with the Conservatory school. To accomplish
this, initial steps include issuing each student a Library card and having classes visit the Library weekly
to checkout materials and listen to stories. We are currently streamlining processes and procedures,
upgrading outdated equipment, and reorganizing various departments. Additionally, we have purchased
Rosetta Stone language learning software and a new PC Reservation system, both of which are
expected to increase membership and circulation and to ease access to our collections. We anticipate
that these upgrades will generate a more positive, enjoyable library experience for our members.
M
The Information Technology Department is involved in numerous projects for the upcoming year:
preparing the Village for Phase Two of the LPR (License Plate Recognition) systems, Police laptop
encryption, Country Club renovation and installations for temporary facilities, Library computer lab
automation, and upgrading the Village's phone system. The IT Department has also implemented
ArchiveSocial to retrieve and archive all of the Village's social media outlets.
The North Palm Beach Country Club will undergo a multi-million dollar renovation that includes a new
clubhouse and ancillary facilities for members, residents, guests, and non-members alike. The new
facility will have multiple dining options, a splash park for juniors, updated administrative offices, a new
pool deck with updated shade structures, multipurpose rooms, locker rooms and an updated golf shop
sizable to the demand of a golf course that supports approximately 42,000+ annual rounds. The goal of
the Golf Operations Department is to continue to provide first class service at a Jack Nicklaus Signature
municipal facility and expand upon our broad range of programming to juniors, women, seniors,
beginners, and families as well as avid golfers. The Golf Operations Department will budget for needed
repairs and upgrades to the facilities to include the driving range lighting, golf course renovations, on
course restroom structures, and updated maintenance buildings. The major focus for FY 2017 will
center on the clubhouse remodeling, with an emphasis for long-range planning as it affects the future of
golf in the Village and in South Florida.
The Administration continues its ongoing implementation of an optical records storage system
(Laserfiche) that allows Village departments to transition - over time - from paper records to optically
stored records. These systems are now widely used by governments and meet all State record storage
requirements. Optical storage permits digital "look up" of any optical record "at will" through the
convenience of a simple computer search. It should be noted that the cost is relatively modest when
considering the time savings benefits and customer service improvements.
The Administration created a Facebook page that has been an outlet to release traffic issues, upcoming
events and information to residents. The Village Newsletter expanded its advertising options and
increased revenue to offset the costs of printing and postage.
For Fiscal Year 2016-2017, the Village Council reiterated its primary objective to sustain the Village as
the "Best Place to Live Under the Sun." As part of that objective, the Council developed the following
goals to guide the budget process:
1. Provide a sustainable financial base for the Village
2. Maintain quality of all recreational facilities of the Village
3. Maintain a high quality of life and improve the overall appearance in the Village
4. Build a new Country Club Clubhouse
5. Implement the Master Plan for business economic development in our commercial corridors and
community development in our neighborhoods
6. Continuously improve the way the Village operates
7. Complete the implementation of the Pay for Performance System
8. Establish a long-term (10 -year) capital plan
►•i
OTHER INFORMATION
Independent Audit
Article 11, Section 2.18 of the Village Charter requires an annual audit of the books of account, financial
records and transactions of all administrative departments of the Village by independent, certified public
accountants selected by the Village Council. To substantiate that this requirement has been met, the
independent auditor's report is included in this report.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement of Excellence in Financial Reporting to the Village of North Palm Beach
for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2015, the 28th
consecutive year the Village has received this award. The Certificate of Achievement is a prestigious
national award, recognizing conformance with the highest standards for preparation of state and local
government financial reports. In order to be awarded a Certificate of Achievement, the governmental
unit must publish an easily readable and efficiently organized CAFR. This report satisfied both GAAP
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We expect our current CAFR will
meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
The GFOA also presented a Distinguished Budget Presentation Award to the Village for its annual
budget for the fiscal year beginning October 1, 2015, the 8th consecutive year the Village has received
this award (previously this award had not been received since 1995). The Distinguished Budget
Presentation Award is a prestigious national award that recognizes conformance with the highest
principles of governmental budgeting. In order to qualify for the Distinguished Budget Presentation
Award, a governmental unit must publish a budget document that meets program criteria as a policy
document, as an operations guide, as a financial plan, and as a communication device.
Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated services
from the entire staff of the Finance Department.
We would like to thank the Mayor and Council for their unfailing support for maintaining the highest
standards of professionalism in the management of the Village of North Palm Beach's finances.
Respectfully submitted,
ia Ja njua
Interim Village Manager/ Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Title
Mayor
Vice Mayor
President Pro Tem
Council Member
Council Member
Village Manager
Director of Finance
Village Clerk
PRINCIPAL VILLAGE OFFICIALS
SEPTEMBER 30, 2016
viii
Name
David B. Norris
Doug Bush
Darryl C. Aubrey
Mark Mullinix
Robert A. Gebbia
James P. Kelly
Samia Janjua
Melissa Teal
Village of North Palm Beach Organizational Structure
Village Attorney
Village Clerk
The Residents
Village Council
Village Manager
L—
General Fund:
• Community Development
• Finance
• Human Resources
• Information Technology
• Library
• Parks & Recreation
• Police
• Fire Rescue
• Public Works
ix
Village Boards
• Audit Committee
• Business Advisory
• Construction Board of
Adjustment
• Golf Advisory
• Library Advisory
• Pension Boards
• Planning Commission
• Recreation Advisory
• Waterways Board
• Zoning Board of Adjustment
Country Club
• Golf
• Food & Beverage
• CC Administration
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of North Palm Beach
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2015
Executive Director/CEO
x
FINANCIAL SECTION
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
N ORT KBRI DOF CENTRE
5151_ FLAG LER 1)RIVE, SLI ITE 170D
POST OFFICE:E30X 347
WEST PALM BEAC:E{, 11_ORIDA 33402-0147
TELEPHONE (561) 659.31360
FAX{561)SMS 28
W W W.NHMCPA.00M
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Report on the Financial Statements
EVERETT S. NOWLER (193&l984). CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
JANET R. SARICEVICH,CPA
TERRY L. MORTON, JR., CPA
N. RONALD SENN ETT. CVA, ABV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T HOLT. JR., PFS,CPA
BRIAN J, BRESCIA, CFP', CPA
MARK J. BYMASTE R. CFE, CPA
RYAN M. SHORE, CFP°,CPA
LVEI PAN ,CPA
WILLIAM C. KISNER, CPA
H ICHARO E, BOTTS, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX (561) 996.6248
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
Village of North Palm Beach, Florida as of and for the year ended September 30, 2016, and the
related notes to the financial statements, which collectively comprise the Village of North Palm
Beach, Florida's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity's preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
1
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the Village of North Palm Beach,
Florida as of September 30, 2016, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis on pages 4 through 13, Pension and Other
Postemployment Benefit trend information on pages 73 through 77, and budgetary comparison
information on pages 78 through 79 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village of North Palm Beach, Florida's basic financial statements. The
introductory section, other supplementary information, and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
2
The other supplementary information is the responsibility of management and was derived from
and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the other supplemental information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 15, 2017, on our consideration of the Village of North Palm Beach, Florida's internal
control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, grant agreements and other matters. The purpose of that report is to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Village of North Palm Beach, Florida's
internal control over financial reporting and compliance.
West Palm Beach, Florida
March 15, 2017
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Village of North Palm Beach, Florida's (Village) Administration offers readers of the Village's
financial statements this narrative overview and analysis of the financial activities of the Village for the
fiscal year ended September 30, 2016. Please read it in conjunction with the accompanying transmittal
letter beginning on page i, and the accompanying basic financial statements.
TABLE 1
FINANCIAL HIGHLIGHTS
(in millions)
September
30,
Increase/
Statement
2016
2015
(Decrease)
Page #
Total net position
$23.47
$23.43
$0.04
14
Unrestricted net position available for future use
$7.10
$6.71
$0.39
14
Governmental net position
$21.18
$21.05
$0.13
14
Total revenues from all sources
$25.58
$24.25
$1.33
15
Governmental revenues
$21.81
$20.45
$1.36
15
Total cost of all Village programs
$25.53
$25.43
$0.10
15
Governmental revenues over (under) expenses
$0.12
($1.13)
$1.25
16
General fund revenues over (under) expenses
$1.74
$0.51
$1.23
19
General fund unassigned fund balance
$10.72
$10.80
($0.08)
17
As a percent of general fund expenditures
54.18%
55.03%
-0.85%
Country Club revenues over (under) expenses
($0.08)
($0.04)
($0.04)
22
Change in total long-term debt for the Village
($0.29)
($0.40)
$0.11
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the financial
statements are: (1) Government -wide financial statements that include the Statement of Net Position and
the Statement of Activities. These statements provide information about the activities of the Village as a
whole. (2) Fund financial statements tell how these services were financed in the short term, as well as
what remains for future spending. Fund financial statements also report the Village's operations in more
detail than the government -wide statements by providing information about the Village's most significant
funds. (3) Notes to the basic financial statements expand upon information reported in the government -
wide and governmental fund statements.
REPORTING ON THE VILLAGE AS A WHOLE
Statement of Net Position and the Statement of Activities (Government -wide)
A frequently asked question regarding the Village's financial health is whether the year's activities
contributed positively to the overall financial well being. The Statement of Net Position and the Statement
of Activities report information about the Village as a whole and about its activities in a way that helps
answer this question. These statements include all assets, deferred outflows of resources, liabilities and
deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting
used by most private -sector companies. All of the current year's revenues and expenses are taken into
account, regardless of when cash is received or paid.
S
These two statements report the Village's net position and changes therein. Net position, the difference
between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is
one way to measure the Village's financial health, or financial position. Over time, increases or decreases
in net position are an indicator of whether the financial health is improving or deteriorating.
The Statement of Net Position and the Statement of Activities present information about the following:
Governmental activities - All of the Village's basic services are considered to be governmental
activities, including general government, community development, public safety, public services,
library, and recreation. Property taxes, sales taxes, utility taxes, and franchise fees finance most of
these activities.
• Proprietary activities/Business-type activities - The Village charges a fee to customers to cover all
or most of the cost of the services provided. The Village's Country Club is reported in this
category.
REPORTING THE VILLAGE'S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the
Village as a whole. Some funds are required to be established by State law. However, management
establishes other funds, which aid in the management of money for particular purposes or meet legal
responsibilities associated with the usage of certain taxes, grants, and other money. The Village's three
types of funds - governmental, proprietary, and fiduciary - use different accounting approaches as
explained below.
Governmental Funds
Most of the Village's basic services are reported in governmental funds. Governmental funds
focus on how resources flow in and out, with balances available for spending remaining at year-
end. These funds are reported using an accounting method called the modified accrual accounting
method, which measures cash and all other financial assets that can be converted to cash readily.
The governmental fund statements provide a detailed short-term view of the Village's general
government operations and the basic services it provides. Governmental fund information shows
whether there are more or fewer financial resources that can be spent in the near future to finance
the Village's programs.
The Village maintains six individual governmental funds: the General Fund, one Capital Projects
Fund, and four Special Revenue Funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balance for the General Fund, and the Capital Projects Fund both of which are
considered maior funds (generally accepted accounting principles define a fund as major based on
that fund's size relative to the other funds of the government; a fund may also be reported as
major if the government's officials believe that fund is particularly important to financial
statement users). The remaining funds are considered non -my or funds, and data from these
governmental funds is combined into a single column for an aggregated presentation. The basic
governmental fund financial statements can be found on pages 17-20 of this report.
Proprietary Funds
The Village's only proprietary fund is the Country Club Fund, which charges customers for the
services it provides. These services are generally reported in proprietary funds. Proprietary funds
are reported in the same way that all activities are reported in the Statement of Net Position and
the Statement of Activities. The basic proprietary fund financial statements can be found on pages
21-23 of this report.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The funds in this category are the Village's Pension Trust Funds and Agency Funds.
Fiduciary funds are not reflected in the government -wide financial statement because the
resources of those funds are not available to support the Village's own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund
financial statements can be found on pages 24-25 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net positon may serve over time as a useful indicator of a government's financial
position. In the case of the Village, the net position was $23.47 million at the close of the most recent
fiscal year.
A significant portion of the Village's net position (68.08%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment), less any related debt still outstanding, which was used to
acquire those assets. The Village uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending.
Assets:
Current and other assets
Capital assets
Total assets
Deferred outflows of resources:
Liabilities:
Current liabilities
Long-term liabilities
Total liabilities
Deferred inflows of resources
Net positon:
Table 2
Village of North Palm Beach
Net Position
(In Thousands)
Governmental Business -type
Activities Activities
2016 2015 2016 2015
Total
2016 2015
$ 15,122
$ 14,995
$ 858
$ 829
$ 15,980
$ 15,824
14,102
14,711
4,551
4,787
18,653
19,498
29,224
29,706
5,409
5,616
34,633
35,322
3,951
1,649
3,951
1,649
1,125
1,567
197
144
1,322
1,711
10,305
8,087
2,913
3,094
13,218
11,181
11,430
9,654
3,110
3,238
14,540
12,892
566,166
644
566,166
644
Net investement in capital assets
14,102
14,711 1,880
1,834 15,982
16,545
Restricted
399
177
399
177
Unrestricted
6,678
6,168 419
545 7,097
6,713
Total net position
$ 21,179
$ 21,056 $ 2,299
$ 2,379 $ 23,478
$ 23,435
Governmental Activities
The cost of all governmental activities this year was $21.69 million. As shown on Table 3, Changes in
Net Position, those who directly benefited from the programs paid for $3.53 million of this cost and
$18.28 million was financed through general revenues. Governmental activities increased the Village's
net position by $0.12 million, thereby accounting for 100% of the total increase in the net position of the
Village.
Additional detail is shown in Table 3, which follows on the subsequent page.
7
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Local option gas taxes
Utility service taxes
Sales and use taxes
Franchise taxes
Investment earnings
Miscellaneous
Gain on asset disposals
Total revenues
Expenses:
Program expenses:
General Government
Public Safety
Public Works
Community Development & Planning
Leisure Services
Country Club
Total expenses
Increase (decrease) in net position
Net position - beginning of year
Net position - end of year
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Governmental Business -type
Activities Activities Total
2016 2015 2016 2015 2016 2015
$ 3,530
$ 3,353 $
3,721
$ 3,789
$ 7,251
$ 7,142
366
380
366
380
229
27
229
27
12,254
11,365
12,254
11,365
288
282
288
282
2,303
2,267
2,303
2,267
1,364
1,332
1,364
1,332
1,264
1,253
1,264
1,253
103
109
9
11
112
120
60
57
60
57
48
30
36
84
30
21,809
20,455
3,766
3,800
25,575
24,255
2,985
3,029
2,985
3,029
9,309
9,311
9,309
9,311
5,106
4,964
5,106
4,964
1,382
1,309
1,382
1,309
2,905
2,973
2,905
2,973
3,845
3,843
3,845
3,843
21,687
21,586
3,845
3,843
25,532
25,429
122
(1,131)
(79)
(43)
43
(1,174)
21,056
22,187
2,379
2,422
23,435
24,609
$ 21,178
$ 21,056 $
2,300
$ 2,379
$ 23,478
$ 23,435
E
The Village's programs include General Government, Public Safety, Public Works, Community
Development & Planning, and Leisure Services. Each program's net cost (total cost, less revenues
generated by the activities) is presented below. The net cost shows the extent to which the Village's
general taxes support each of the Village's programs.
General government
Public safety
Public works
Community development
and planning
Leisure services
Interest on long-term debt
Table 4
Village of North Palm Beach
Cost of services
(In Thousands)
2016
2015
Total Cost
Net Cost
Total Cost
Net Cost
of Services
of Services
of Services
of Services
$ 2,985
$ (2,850)
$ 3,029
$ (2,894)
9,309
(8,345)
9,311
(8,424)
5,106
(4,520)
4,964
(4,424)
1,382
(169)
1,309
(145)
2,905
(1,678)
2,973
(1,939)
$ 21,687 $ (17,562) $ 21,586 $ (17,826)
At the end of the current year, as compared to the prior year, the total cost of services increased by $0.10
million. This change in cost can be broken down as follows:
• General Government decreased by $0.04 million due to savings in election and insurance
expenses.
• Public Works increased by $0.14 million due to an increase in personnel related costs.
• Community Development increased by $0.07 million due to updating the Village Master Plan.
Business -Type Activities
At the end of the current year, as compared to the prior year, Charges for Services (revenues) for the
Business -type activities decreased by $68,279 and expenses increased by $21,183. Net positon of the
Proprietary Fund (Country Club) at September 30, 2016, was $2.29 million. Net position decreased by
$79,351 in the current year vs. $43,415 in the prior year, resulting in a negative impact of $35,936.
The negative impact in the Village's Business -type activities was largely due to increased expenses in the
Restaurant operations, The decrease in the Charges for Services was offset by decreased expenses in the
Golf operations. The Enterprise Fund is on solid financial footing; however, there are serious
infrastructure issues related to the clubhouse that need to be addressed. The Village is in the process of
the construction of a new clubhouse; therefore, no major repairs to the current building are budgeted in
the upcoming year.
9
FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental Funds
The focus of the Village's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Village's financing
requirements. hi particular, unrestricted (unassigned/assigned) fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the combined fund balance for all Governmental Funds was $13.80
million, a $0.58 increase over the 2015 fund balance of $13.22 million. Approximately 95% of the
combined ending fund balance ($13.04 million) constitutes unrestricted (unassigned/assigned) fund
balance, which is available for spending at the government's discretion. The remainder of fund balance
($0.76 million) is restricted (non-spendable/restricted) to indicate that it is not available for new spending
because it has already been committed for a variety of other restricted purposes.
General Fund
The General Fund is the chief operating fund of the Village. At the end of the current fiscal year,
unassigned fund balance of the General Fund was $10.72 million while the General Fund total fund
balance was $11.64 million. As a measure of the General Fund's liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance
is 54% of total general fund expenditures, while total fund balance represents 59% of that same amount.
The general fund unassigned fund balance ($10.72 million) represents a decrease of $.08 million over the
2015 unassigned general fund balance of $10.80 million. The decrease is largely due to the Village
utilizing $0.02 million from its General Fund unassigned fund balance to provide matching funds for a
Recreational Grant.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were $519,889 and can be briefly
summarized as follows:
• Small Business Grant Carryover ($6,435)
• Prior Year Open Purchase Order Carryover ($313,454)
• Use of General Fund Unassigned Fund Balance — Grant Match ($200,000)
General Fund Budget Analysis
As shown on pages 80-82 of this report, in the Schedule of Departmental Expenditures — Budget and
Actual, there was an overall favorable budget to actual cost variance of $27,797 in General Fund
Departmental Expenditures. The areas of significant budget to actual variances for the General Fund
expenditures are summarized below:
• The negative variance in Public Safety ($345,150) is a result of the increase in personnel -
related costs.
• During the budgeting process, various assumptions, along with previous year costs, are used
in the development of the current year budget for operating costs. To counter the increase in
employee compensation costs, the Village Manager directed Department Directors to reduce
spending in a manner that would minimize the impact on our residents. The Directors did an
10
admirable job identifying areas to cut operating costs resulting in favorable budget variances
(The actual costs came in well under the projected budgeted amount.... overall budget to
actual savings in operating costs of $589,057). The areas of significant budgetary savings for
the General Fund operating costs are summarized below:
o Repair and maintenance costs ($194,408)
o Fuel costs for Village vehicles ($107,127)
o Materials & Supplies ($246,578)
Capital Projects Fund
The Village's Capital Projects Fund is project specific and involves multi-year projects. Appropriations in
this fund remain open and carry over to succeeding years until planned expenditures are made, or until
they are amended or cancelled. At the end of the current fiscal year, the total fund balance was $1.65
million, a $0.16 million increase over the 2015 fund balance of $1.49 million. This is primarily due to the
transfer of funds from General Fund to finance several capital projects.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The capital assets of the Village are those assets that are used in the performance of Village functions.
Capital assets include equipment, buildings, land, and park facilities etc. The Village has elected to
retroactively apply the capitalization requirements of GASB Statement No 34 to major general
infrastructure assets acquired in fiscal years ending after June 30, 1980, or that were significantly
reconstructed or improved during that multiyear period.
The Village's investment in capital assets for its governmental and business -type activities as of
September 30, 2016 and 2015 amounts to $18.65 million and $19.50 million, respectively (net of
accumulated depreciation).
11
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business -type
Activities Activities
2016
2015
2016
2015
Total
2016 2015
Land
$ 2,056
$ 2,056
$ 1,051
$ 1,051
$ 3,107
$ 3,107
Construction in progress
21
267
228
249
267
Buildings and improvements
23,590
23,136
1,405
1,405
24,995
24,541
Improvements other than buildings
272
272
272
272
Improvements - golf course
5,824
5,824
5,824
5,824
Furniture, fixtures and equipment
7,891
7,503
308
783
8,199
8,286
Total assets
33,558
32,962
9,088
9,335
42,646
42,297
Less accumulated depreciation
(19,455)
(18,251)
(4,537)
(4,547)
(23,992)
(22,798)
Net position
$ 14,103
$ 14,711
$ 4,551
$ 4,788
$ 18,654
$ 19,499
Additional information on the Village's capital assets can be found in Note 5 on pages 45 through 46 of
this report.
Debt
Currently, the Village uses debt financing on an as -needed basis each year. At the end of the current fiscal
year, the Village had total long-term debt of $2.68 million, all of which is in business -type activities.
The last outstanding debt instrument in the General Fund was satisfied in 2010; therefore, there is no
long-term debt outstanding in the Village's governmental activities. None of the Village's long-term debt
comprises debt backed by the full faith and credit of the government.
Table 6
Village of North Palm Beach
Outstanding Debt
(In Thousands)
Governmental
Activities
2016 2015
Business -type
Activities
2016 2015
Total
2016 2015
Loans payable $ 2,685 $ 2,825 $ 2,685 $ 2,825
Capital leases 148 148
Total $ $ $ 2,685 $ 2,973 $ 2,685 $ 2,973
Additional information on the Village's debt can be found in Note 6 on pages 47 through 48 of this report.
12
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
The Village's Unassigned Fund Balance is viewed by the Administration as a measurement of Village
financial stability. Unassigned general fund balance decreased to $10.72 million during the current 2016
fiscal year. The Village is now ready to address the economic challenges anticipated in the next few
years.
The economic outlook for the primary revenue source for Florida municipalities will be challenging, as
cities are facing state mandated reductions of property taxes. In an effort to provide tax relief and spur the
slumping housing market, the State legislature focused on property tax reform in the 2007 session. House
Bill 1B was enacted to limit the authority of local governments to levy ad valorem taxes for the FY 2008
budget year and beyond.
The economic downturn and decline in property values have significantly impacted Village revenues. To
address the impact of the legislation, continuing increases in the cost of employee compensation and
benefits, and the reduction of revenues, the Village will need to continue to prioritize essential services
and desired levels of service to allocate sufficient funding in future budget years.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the Village's finances and to show the Village's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Village's Finance Department, at the Village of North Palm Beach, 501 U.S. Highway 1, North Palm
Beach, Florida 33408.
13
BASIC FINANCIAL STATEMENTS
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
September 30, 2016
Governmental Business -type
Activities Activities Total
Assets
14,102,547
1,880,421 15,982,968
Restricted for:
Cash and cash equivalents
$ 4,656,492 $
699,461 $
5,355,953
Investments
9,074,710
44,839
9,074,710
Accounts receivable
439,346
17,830
457,176
Accrued interest
18,945
56,079
18,945
Inventories
148,060
116,074
264,134
Prepaids
210,546
10,599
221,145
Due from other governments
174,704
2,516,171
174,704
Restricted assets:
11,429,801
3,110,151
14,539,952
Cash and cash equivalents
398,519
398,519
Intangible assets, net of amortization
13,854
13,854
Capital assets:
Nondepreciable
2,077,060
1,279,129
3,356,189
Depreciable (net of depreciation)
12,025,487
3,272,351
15,297,838
Total assets
29,223,869
5,409,298
34,633,167
Deferred outflows of resources
Pension related items 3,951,014 3,951,014
Total deferred outflows of resources 3,951,014 3,951,014
Liabilities
14,102,547
1,880,421 15,982,968
Restricted for:
Accounts payable
725,109
85,036
810,145
Accrued liabilities
229,975
44,839
229,975
Unearned revenue
169,471
111,565
281,036
Accrued interest payable
47,629
56,079
56,079
Noncurrent liabilities:
Unrestricted
6,677,850
418,726 7,096,576
Due within one year
863,482
341,300
1,204,782
Due in more than one year
9,441,764
2,516,171
11,957,935
Total liabilities
11,429,801
3,110,151
14,539,952
Deferred inflows of resources
Unearned revenue 194,835 194,835
Pension related items 371,331 371,331
Total deferred inflows of resources 566,166 566,166
Net position
Net investment in capital assets
14,102,547
1,880,421 15,982,968
Restricted for:
Recreation
297,695
297,695
Streets and roads
44,839
44,839
Public safety
6,010
6,010
Library
47,629
47,629
Other purposes
2,346
2,346
Unrestricted
6,677,850
418,726 7,096,576
Total net position
$ 21,178,916 $
2,299,147 $ 23,478,063
See notes to the financial statements.
14
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2016
Functions/Programs Expenses
Government:
Governmental activities
General government
Public safety
Public works
Community development and planning
Leisure services
Total governmental activities
Business -type activities - country club
Total business -type activities
Total government
15
Charges for
Activities
2,985,185 $ 128,459
9,308,778 628,529
5,106,651 565,011
1,382,121 1,213,032
2,904,715 994,918
21,687,450 3,529,949
3,845,547 3,720,573
3,845,547 3,720,573
$ 25,532,997 $ 7,250,522
Program Revenues Net Expense (Revenue) and
Operating Capital Changes in Net Position
Grants and Grants and Governmental Business -type
Contributions Contributions Activities Activities Total
$ 7,246
$ (2,849,480) $
$ (2,849,480)
315,209
19,840 (8,345,200)
(8,345,200)
21,206
(4,520,434)
(4,520,434)
Local option gas taxes
(169,089)
(169,089)
22,162
209,321 (1,678,314)
(1,678,314)
365,823
229,161 (17,562,517)
(17,562,517)
(124,974) (124,974)
(124,974) (124,974)
$ 365,823 $ 229,161 (17,562,517) (124,974) (17,687,491)
General Revenues:
Taxes:
Property taxes
12,253,917
12,253,917
Local option gas taxes
288,150
288,150
Utility service taxes
2,303,294
2,303,294
Franchise taxes
1,263,812
1,263,812
Sales and use taxes
1,363,954
1,363,954
Investment income - unrestricted
103,353
9,230 112,583
Miscellaneous
60,026
60,026
Gain on disposal of equipment
48,114
36,393 84,507
Total general revenues
17,684,620
45,623 17,730,243
Change in net position 122,103 (79,351) 42,752
Net position, beginning of year 21,056,813 2,378,498 23,435,311
Net position, end of year $ 21,178,916 $ 2,299,147 $ 23,478,063
See notes to the financial statements.
16
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2016
Assets
Cash and cash equivalents
Investments
Accounts receivable
Accrued interest
Inventories
Prepaids
Due from other funds
Due from other governments
Restricted cash and cash equivalents
Total assets
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable $ 426,054 $ 292,948 $ 6,107 $ 725,109
Accrued liabilities 229,975 229,975
Due to other funds 62,348 62,348
Unearned revenue 169,471 169,471
Total liabilities 825,500 292,948 68,455 1,186,903
Deferred inflows of resources
Unearned revenue 194,835 194,835
Total deferred inflows of resources 194,835 194,835
Fund balances
Nonspendable:
Inventories and prepaids
Restricted for:
Recreation
Streets and roads
Police
Library
Other purposes
Assigned for:
Small business grants
Subsequent year's expenditures
Special revenue funds
Capital project funds
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
358,606 358,606
252,195
Capital
Nonmajor
Total
Projects
Governmental
Governmental
General
Fund
Funds
Funds
2,346
2,346
23,935
$ 2,252,510
$ 1,852,993
$ 550,989
$ 4,656,492
9,074,710
9,074,710
439,346
1,604,073
1,604,073
439,346
18,945
10,724,049
11,643,878
18,945
148,060
$ 12,664,213
$ 1,942,521 $
148,060
210,546
210,546
18,320
44,028
62,348
148,757
25,947
174,704
353,019
45,500
398,519
$ 12,664,213
$ 1,942,521
$ 576,936
$ 15,183,670
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable $ 426,054 $ 292,948 $ 6,107 $ 725,109
Accrued liabilities 229,975 229,975
Due to other funds 62,348 62,348
Unearned revenue 169,471 169,471
Total liabilities 825,500 292,948 68,455 1,186,903
Deferred inflows of resources
Unearned revenue 194,835 194,835
Total deferred inflows of resources 194,835 194,835
Fund balances
Nonspendable:
Inventories and prepaids
Restricted for:
Recreation
Streets and roads
Police
Library
Other purposes
Assigned for:
Small business grants
Subsequent year's expenditures
Special revenue funds
Capital project funds
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
358,606 358,606
252,195
45,500
297,695
44,839
44,839
6,010
6,010
47,629
47,629
2,346
2,346
23,935
23,935
184,269
184,269
508,481 508,481
1,604,073
1,604,073
10,724,049
10,724,049
11,643,878
1,649,573
508,481 13,801,932
$ 12,664,213
$ 1,942,521 $
576,936 $ 15,183,670
See notes to the financial statements.
17
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Balance Sheet — Governmental Funds
to the Statement of Net Position
September 30, 2016
Fund balances - total governmental funds
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the governmental funds:
Governmental capital assets
Less: accumulated depreciation
Long-term liabilities, including notes and bonds payable, are not due and
payable in the current period and therefore are not reported in the
governmental funds. Long term liabilities at year-end consist of:
Claims and settlements
Net pension liability
Other postemployement benefits
Accrued compensated absences
Deferred outflows and inflows of resources related to pensions are
applicable to future periods and, therefore, are not reported in the
govenmental funds:
Pension related deferred outflows
Pension related deferred inflows
Net position of governmental activities
See notes to the financial statements.
IN
$ 33,558,198
(19,455,651)
(50,000)
(6,583,056)
(2,476,294)
(1,195,896)
3,951,014
(371,331)
$ 13,801,932
14,102,547
(10,305,246)
3,579,683
$ 21,178,916
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2016
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Public works
Community development and planning
Leisure services - recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balances
Beginning of year
End of year
See notes to the financial statements.
19
Capital
Nonmajor
Total
Projects
Governmental
Governmental
General
Fund
Funds
Funds
$ 16,109,173
$
$
$ 16,109,173
1,235,782
1,235,782
1,435,796
330,040
1,765,836
2,364,013
2,364,013
91,534
91,534
103,353
103,353
191,250
191,250
21,530,901
330,040
21,860,941
2,876,521
2,876,521
8,819,747
310,200
9,129,947
4,266,749
4,266,749
1,351,061
1,351,061
2,448,164
2,448,164
31,067
1,148,297
29,885
1,209,249
19,793,309
1,148,297
340,085
21,281,691
1,737,592
(1,148,297)
(10,045)
579,250
1,303,750
200,000
1,503,750
(1,503,750)
(1,503,750)
(1,503,750)
1,303,750
200,000
233,842
155,453
189,955
579,250
11,410,036
1,494,120
318,526
13,222,682
$ 11,643,878
$ 1,649,573
$ 508,481
$ 13,801,932
See notes to the financial statements.
19
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2016
Net change in fund balances - total governmental funds $ 579,250
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures.
However, in the statement of activities, the cost of capital
assets is allocated over their estimated useful lives and reported
as depreciation expense:
Expenditures for capital assets $ 1,048,627
Less: current year depreciation (1,605,708)
(557,081)
Gains and losses on disposal of capital assets are reported in the statement
of activities, whereas in the governmental funds the proceeds from the sale
increases financial resources. The difference is the net book value of the
assets retired:
Net book value for retired assets (51,388)
Expenses that do not use current financial resources are not
reported on the governmental funds but are included in the
statement of activities:
Change in long-term compensated absences 70,823
Change in net pension liability and related deferred amounts 346,739
Change in other postemployement benefits (266,240)
151,322
Change in net position $ 122,103
See notes to the financial statements.
U11
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
Proprietary Fund
September 30, 2016
Assets
Current assets
Cash and cash equivalents
Accounts receivable
Inventories
Prepaids
Total current assets
Non-current assets
Intangible asset, net
Capital assets, net
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable
Deposits
Unearned revenue
Accrued interest payable
Compensated absences - current portion
Loans payable - current portion
Total current liabilities
Non-current liabilities
Other postemployement benefits
Compensated absences
Loans payable
Total non-current liabilities
Total liabilities
Net position
Net investment in capital assets
Unrestricted
Total net position
See notes to the financial statements.
21
Enterprise
$ 699,461
17,830
116,074
10,599
843,964
13,854
4,551,480
4,565,334
5,409,298
85,036
111,565
56,079
46,013
295,287
593,980
112,021
14,524
2,389,626
2,516,171
3,110,151
1,880,421
418,726
$ 2,299,147
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended September 30, 2016
Operating expenses
Golf course maintenance expenses
Enterprise
Operating revenue
77,263
Greens fee/cart rentals/membership fees
$ 2,294,659
Golf shop revenues
326,280
Driving range revenues
322,208
Restaurant revenues
761,379
Miscellaneous
16,047
Total operating revenues
3,720,573
Operating expenses
Golf course maintenance expenses
1,124,053
Clubhouse grounds expenses
77,263
Golf shop expenses
970,648
Food and beverage expenses
1,032,370
Administrative and general
92,440
Insurance
51,889
Depreciation and amortization
380,001
Total operating expenses
3,728,664
Operating income (loss)
(8,091)
Nonoperating revenues (expenses)
Interest revenue
9,230
Gain on disposal of equipment
36,393
Interest expense
(116,883)
Total nonoperating revenues (expenses)
(71,260)
Change in net position (79,351)
Net position - beginning 2,378,498
Net position - ending $ 2,299,147
See notes to the financial statements.
22
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Cash Flows
Proprietary Fund
For the Year Ended September 30, 2016
Cash flows from operating activities:
Receipts from customers
Payments to suppliers for goods or services
Payments to employees for services
Net cash provided by operating activities
Cash flows from capital and related financing activities:
Proceeds from the sale of capital assets
Principal paid on long term debt
Interest paid on debt
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
Cash flows from investing activities:
Interest and dividends on investments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Reconciliation of operating income
to net cash provided by operating activities:
Operating income
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and amortization
Change in assets and liabilities
Decrease in accounts receivable
Decrease in inventory
Increase in prepaids
Increase in accounts payable
Decrease in deposits
Increase in compensated absences payable
Increase in deferred revenue
Increase in other postemployment benefits
Total adjustments
Net cash provided by operating activities
See notes to the financial statements.
23
Enterprise
$ 3,728,102
(2,215,987)
(1,030,809)
481,306
144,999
(287,841)
(60,804)
(247,212)
(450,858)
9,230
39,678
659,783
$ 699,461
$ (8,091)
380,001
173
9,197
(4,158)
45,798
(8,700)
35,762
16,056
15,268
489,397
$ 481,306
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2016
Assets
Cash and cash equivalents
Investments:
Domestic common equity securities
International common equity securities
U.S. Government and agencies
Municipal bonds
Corporate bonds
Fixed income exchange traded funds
Equity exchange traded funds
Fixed income mutual funds
Equity mutual funds
Real estate investment fund
Money market mutual funds
Accrued interest and dividends
Accounts receivable
Accounts receivable, broker-dealers
Prepaids
Total assets
Liabilities
Accounts payable
Accounts payable, broker-dealers
Due to others
Total liabilities
Net position restricted for pensions
Employee
Retirement
Funds
$ 526,798
10,052,421
1,458,062
1,042,726
206,383
3,384,990
3,107,648
2,522,701
1,618,531
6,002,869
2,244,002
1,243,821
51,294
59,223
34,848
1,609
33,557,926
Agency
Funds
$ 363,177
363,177
73,742
43,842
363,177
117,584 363,177
$ 33,440,342 $
See notes to the financial statements.
24
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended September 30, 2016
Additions
Contributions
Employer
Plan members
State on -behalf payments
Total contributions
Investment earnings
Dividends and interest
Net increase in fair value
of investments
Total investment earnings
Less: investment expenses
Total net investment earnings
Total additions
Deductions
Administrative expense
Benefits
Total deductions
Change in net position
Net position - beginning
Net position - ending
Employee
Retirement
Funds
$ 1,428,451
325,545
310,200
2,064,196
1,965,851
2,830,709
193,444
2,637,265
4,701,461
101,761
985,167
1,086,928
3,614,533
29,825,809
$ 33,440,342
See notes to the financial statements.
25
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Village of North Palm Beach, Florida ("the Village") was incorporated in 1956 pursuant to
Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the
northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately
1,900 acres of land and 1,200 acres of lakes, canals and lagoons. The Village's nonseasonal
population consists of approximately 13,000 residents, which increases during the winter months
to approximately 18,000 people. The Village operates under the Council -Manager form of
government and provides the following services to its residents: public safety, planning and
zoning, sanitation, library, parks, marinas, and a country club. The Village Council (the
"Council") is responsible for legislative and fiscal control of the Village.
As required by generally accepted accounting principles, these financial statements include the
Village (the primary government) and its component units. Component units are legally separate
entities for which the Village is financially accountable. The Village is financially accountable if:
• it appoints a voting majority of the organization's governing board and (1) it is able to
impose its will on the organization, or (2) there is a potential for the organization to
provide specific financial benefits to or impose specific financial burdens on the Village,
or
• the organization is fiscally dependent on the Village and (1) there is a potential for the
organization to provide specific financial benefits to the Village or (2) impose specific
financial burdens on the Village.
Organizations for which the Village is not financially accountable are also included when doing
so is necessary in order to prevent the Town's financial statements from being misleading.
Based upon application of the above criteria, the Village of North Palm Beach has determined
that there are two legally separate entities to consider as potential component units. The Village
of North Palm Beach General Employees' Retirement Fund and the Village of North Palm Beach
Fire and Police Retirement Fund are component units as they are fiscally dependent on and
impose a specific financial burden on the Village. They are reported in the Village's financial
statements as pension trust funds in the fiduciary funds financial statements.
B. Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all non -fiduciary activities of the Village. For the most part,
the effect of interfund activities has been removed from these statements. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported
separately from business -type activities, which rely, to a significant extent, on fees and charges
for support.
26
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government -wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment, and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government -wide financial
statements. Major individual governmental funds and the major individual enterprise fund are
reported as separate columns in the fund financial statements.
C. Measurement Focus. Basis ofAccounting and Financial Statement Presentation
The government -wide financial statements and proprietary fund financial statements are reported
using the accrual basis of accounting and the economic resources measurement focus. Fiduciary
funds use the accrual basis of accounting and, except for agency funds, the economic resources
measurement focus. Agency funds do not have a measurement focus. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Village considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, licenses, intergovernmental revenue, investment
income, and charges for services are all considered to be susceptible to accrual and so have been
recognized as revenue of the current fiscal period. All other revenues are considered to be
measurable and available only when received in cash by the Village.
27
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis ofAccountiM and Financial Statement Presentation (Continued)
The Village reports the following major governmental funds:
General Fund
The general fund is the primary operating fund and is used to account for all financial resources
applicable to the general operations of the Village except those required to be accounted for in
another fund.
Capital Projects Fund
The capital projects fund is used to account for the cost of acquiring, constructing, and placing
into service those capital improvements, which are associated with activities in the General
Fund.
The Village reports the following major (and only) proprietary fund:
Country Club Enterprise Fund
The fund accounts for the activities related to the Country Club.
Additionally, the Village reports the following fund types:
Special Revenue Funds
The Village has four special revenue funds to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specific sources. The funds are the Public
Safety Fund, Northlake Boulevard Fund, Recreation, and On -Behalf Pension Contributions.
Employee Retirement Funds
The pension trust funds account for the activities of the General Employees Retirement Fund and
the Fire and Police Officers Retirement Fund, which accumulate resources for pension benefits
to qualified employees.
Agency Funds
The Agency Funds account for assets that are held for other parties and cannot be used to finance
the Village's own programs. The two agency funds are the Northlake Boulevard Task Force,
which is for the streetscape improvement of Northlake Boulevard, and the Manatee Protection
Fund, in which the assets are held in trust for the protection of manatees through the enforcement
of boat speed zones on the intracoastal and inland waterways.
W.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis ofAccountiM and Financial Statement Presentation (Continued)
As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the government's
country club and various other functions of the Village. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Village's Country Club Enterprise Fund are charges to
customers for sales and services. Operating expenses for the Enterprise Fund include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Village's policy to
use restricted resources first, then unrestricted resources as needed.
D. Assets, Liabilities, and Net Position or Equity
Cash and Cash Equivalents
Cash and cash equivalents consist of petty cash, deposits in checking accounts, money market
mutual funds, and investments with Florida Prime managed by the State of Florida, State Board
of Administration. All money market mutual funds are registered as a 2a-7 fund with the SEC
and reported at amortized cost. Deposits in Florida Prime are generally available for withdrawal
by the Village on a next day basis and are therefore considered cash equivalents. Florida Prime
is an external investment pool administered by the State of Florida, which operates as a "2a7 -
like" pool under GASB Statement No. 31. As such, the pool uses amortized cost for valuation of
the pool shares and the fair value of the shares in the pool is the same as the Village's investment
in the pool shares.
For purposes of determining cash equivalents, the Village has defined its policy concerning the
treatment of short-term investments to include investments with a maturity of three months or
less when purchased, as cash equivalents if management does not plan to reinvest the proceeds.
Short-term investments that management intends to rollover into similar investments are
considered part of the investment portfolio and are classified as investments.
Accounts Receivable
Accounts receivable of the General Fund consists of billed and unbilled receivables.
29
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Concentration of Credit Risk
The Village performs ongoing credit evaluations of its customers and does not require collateral.
The Village maintains an allowance for uncollectible accounts at a level which management
believes is sufficient to cover potential credit losses.
Investments
Investments are reported at fair value as required by generally accepted accounting principles.
The fair value of an investment is the amount that the Village could reasonably expect to receive
for it in a current sale between a willing buyer and a willing seller, other than in a forced or
liquidation sale. Purchases and sales of investments are recorded on a trade date basis.
Interfund Transactions
Activity between funds that is representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either "due to" or "due from other funds". Any
residual balance outstanding between the governmental activities and business -type activities are
reported in the government -wide financial statements as internal balances.
Transfers and interfund balances totally within governmental activities and those that are totally
within business -type activities are eliminated and not presented in the government -wide financial
statements. Transfers and balances between governmental and business -type activities are
presented in the government -wide financial statements.
Inventories and Prepaid Items
Inventories are valued at cost determined on a last -in, first -out basis (LIFO). The costs of
governmental fund type inventory are recorded as expenditures when consumed rather than when
purchased. Inventories in the Enterprise Fund consist of goods for sale to the public. The initial
cost is recorded as an asset at the time the individual inventory items are purchased and are
charged against operations in the period when used.
Payments made to vendors for services that will benefit future periods are reported as prepaid
items using the consumption method by recording an asset for the prepaid amount and reflecting
an expenditure in the year in which the services are consumed.
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Capital Assets and Depreciation
Capital assets, which include property, plant, infrastructure, and equipment, are reported in the
applicable governmental or business -type activities column in the government -wide financial
statements. The Village capitalizes all land purchases. The capitalization policy for other assets
are items with an estimated life in excess of one year and an initial individual cost of $250,000
for infrastructure, $25,000 for land improvements, $50,000 for buildings and building
improvements, and $5,000 for equipment and vehicles. The Village has elected to retroactively
apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure
assets acquired in fiscal years ending after June 30, 1980, or that were significantly reconstructed
or improved during that multi-year period. Infrastructure is reported in buildings and
improvements.
The accounting and reporting treatment applied to the capital assets associated with a fund is
determined by the fund's measurement focus. General capital assets are assets of the Village as
a whole. When purchased, such assets are recorded as expenditures in the governmental funds
and capitalized as assets in the government -wide statement of net position. General capital
assets are carried at historical cost. Where cost cannot be determined from the available records,
estimated historical cost has been used to record the estimated value of the assets. Assets
acquired by gifts or bequests are recorded at their fair value at the date of acquisition.
Capital assets of the Enterprise Fund are capitalized in the fund. The valuation basis for
Enterprise Fund capital assets is the same as those used for General capital assets. Additionally,
net interest cost is capitalized on Enterprise Fund projects during the construction period.
Additions, improvements, and other capital outlay that significantly extend the useful life of an
asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation has been provided over the estimated useful lives using the straight-line method of
depreciation. The estimated lives for each major class of depreciable capital assets are as
follows:
Buildings, improvements and infrastructure 5-30 years
Golf course improvements 5-30 years
Machinery and Equipment 3-15 years
Vehicles 3-20 years
31
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Deferred Outflows and Inflows of Resources
The statement of net position includes a separate section for deferred outflows of resources. This
represents the usage of net position applicable to future periods and will not be recognized as
expenditures until the future period to which it applies. The Village reports deferred pension
items in connection with its two Retirement Systems. These deferred pension charges are either
(a) recognized in the subsequent period as a reduction of the net pension liability (which includes
pension contributions made after the measurement date) or (b) amortized in a systematic and
rational method as pension expense in future periods.
The statement of net position also includes a separate section, listed below total liabilities, for
deferred inflows of resources. This represents the acquisition of net position applicable to future
periods and will not be recognized as revenue until the future period to which it applies. The
Village currently has two types of deferred inflows. The first is local business tax revenues
received prior to the period for which the taxes are levied, these are recognized as income in the
period for which they are levied. The second is deferred pension items in connection with its
two Retirement Systems. These items are amortized in a systemic and rational method and
recognized as a reduction of pension expense in future periods.
Unearned Revenue
The Village reports unearned revenue on its statements of net position and governmental funds
balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition.
In subsequent periods, when revenue recognition criteria are met the unearned revenue is
removed and revenue is recognized.
Compensated Absences
The Village's employees are granted compensated absence pay for vacation and sick leave in
varying amounts based on length of service. Unused compensated absences are payable upon
separation from service. Vacation is accrued as a liability when the employee earns benefits.
This means that the employee has rendered services that give rise to a vacation liability and it is
probable that the Village will compensate the employee in some manner, e.g., in cash or paid
time -off, now or upon termination or retirement. The Village uses the vesting method in
accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for
employees who are eligible to receive termination payments upon separation.
Compensated absences are accrued when incurred in the government -wide and proprietary
financial statements. A liability for these amounts is reported in the governmental funds only if
the amounts have matured, for example, as a result of employee resignations or retirements. For
the governmental funds, compensated absences are liquidated by the General Fund.
32
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Lon, -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business -type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Nvt Pnviti"n
Equity in the government -wide statement of net position and the proprietary fund is displayed in
three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Invested in
capital assets, net of related debt consists of capital assets reduced by accumulated depreciation
and by any outstanding debt incurred to acquire, construct, or improve those assets. Restricted
net position is reported when there are legal limitations imposed on their use by Village
legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net
position consists of all net position that does not meet the definition of either of the other three
components.
Fund Equity
In the fund financial statements, governmental funds report fund balance classifications that
comprise a hierarchy based primarily on the extent to which the Village is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is
reported under the following categories:
• Nonspendable fund balance represents amounts that are not in spendable form or are
legally or contractually required to be maintained intact.
• Restricted fund balance represents amounts that can be spent only for specific purposes
stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations
of other governments) or imposed by law through constitutional provisions or enabling
legislation.
33
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Fund Equity (Continued)
• Committed fund balance represents amounts that can be used only for the specific purposes
pursuant to constraints imposed by Village Commission by the adoption of an ordinance,
the Village's highest level of decision making authority. Those committed amounts cannot
be used for any other purpose unless the Village removes or changes the specified use by
the adoption of an ordinance.
• Assigned fund balance includes spendable fund balance amounts that are intended to be
used for specific purposes, as expressed by the Village Commission or Village Manager, in
accordance with the Villages fund balance policy, that are neither considered restricted nor
committed. The Small Business Grants is a program the Village Council approved in the
prior fiscal year to provide matching grants of up to $7,500 for improvements to small
business properties.
• Unassigned fund balance is the residual fund balance classification for the general fund. It
is also used to report negative fund balances in other governmental funds.
When both restricted and unrestricted resources are available for use, it is the Village's policy to
use restricted resources first, then unrestricted resources as they are needed. The Village will
first use committed fund balance, then assigned fund balance, and then unassigned fund balance
when expenditures are incurred for purposes for which any of the unrestricted fund balance
classifications could be used.
Use o Estimates
The financial statements and related disclosures are prepared in conformity with accounting
principles generally accepted in the United States. Management is required to make estimates
and assumptions that affect the reported amounts of assets, deferred inflows and outflows, and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements,
and revenue and expenses during the period reported. These estimates include the collectability
of accounts receivable, the use and recoverability of inventory, the useful lives and impairment
of tangible assets, and the realization of net pension assets, among others. Estimates and
assumptions are reviewed periodically and the effects of revisions are reflected in the financial
statements in the period they are determined to be necessary. Actual results could differ from
those estimates.
A. Budgetary Data
Formal budgetary integration is employed as a management control device during the year for
the General Fund and the Enterprise Fund. The only governmental fund with a legally adopted
annual budget is the General Fund. This budget is adopted on a basis consistent with generally
accepted accounting principles. Except for budgeting capital expenditures and not budgeting for
WE
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 2 — STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Data
depreciation, the annual appropriated budgets for the Enterprise Funds are adopted on a basis
consistent with generally accepted accounting principles. For budgeting purposes, current year
encumbrances are not treated as expenditures.
The procedures for establishing budgetary data are as follows:
• In July of each year, the Village Manager submits a proposed operating budget to the
Council for the next fiscal year commencing the following October 1St. The proposed
budget includes expenditures and the means of financing them.
• During the months of July, August and September, the Council holds public meetings to
obtain taxpayer comments.
• Upon completion of the public hearings and prior to October 1St, a final operating budget
is legally enacted through the passage of an ordinance. Estimated beginning fund
balances are considered in the budgetary process.
• The Village Manager is authorized to transfer budgeted amounts up to $10,000. Any
change to the total fund expenses must be approved by the Village Council.
• Appropriations along with encumbrances lapse on September 30th.
Budgeted amounts are as originally adopted, or as amended by appropriate action. During the
year, several supplementary appropriations were necessary.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g. purchase
orders or contracts) outstanding at year end are reported assigned fund balance and do not
constitute expenditures or liabilities because the commitments will be reappropriated and
honored during the subsequent year. The General Fund had $184,269 and the Capital Projects
Fund had $342,144 in outstanding encumbrances at year-end.
B. Property Taxes
Under Florida law, the assessment of all properties and the collection of all county, municipal,
and school board property taxes are consolidated in the offices of the County Property Appraiser
and the County Tan Collector. All property is reassessed according to its fair market value on
January 1 of each year and each assessment roll is submitted to the State Department of Revenue
for review to determine if the assessment rolls meet all of the appropriate requirements of State
law.
The laws of the State regulating tax assessment are also designed to assure a consistent property
valuation method statewide. State Statutes permit municipalities to levy property taxes at a rate
of up to 10 mills. The tax levy of the Village is established by the Council prior to October 1St of
each year during the budget process.
35
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 2 — STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
B. Property Taxes (Continued)
The Palm Beach County Property Appraiser incorporates the Village's millage into the total tax
levy, which includes the County, County School Board, and special district tax requirements.
The millage rate assessed by the Village for the year ended September 30, 2016, was 7.3300
($7.3300 for each $1,000 of assessed valuation).
Taxes may be paid less a 4% discount in November or at declining discounts each month through
the month of February. All unpaid taxes become delinquent on April 1 following the year in
which they are assessed. Delinquent taxes on real property bear interest at 18% per year. On or
prior to June 1St following the tax year, certificates are offered for sale for all delinquent taxes on
real property.
After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer.
The certificate holder may make application for a tax deed on any unredeemed tax certificate
after a period of two years. The County holds unsold certificates. Delinquent taxes on personal
property bear interest at 18% per year until the tax is satisfied either by seizure and sale of the
property or by the five-year statute of limitations. At September 30, 2016, unpaid delinquent
taxes are not material and have not been recorded by the Village.
NOTE 3 — DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2016, the carrying amount of the Village's deposits (including fiduciary
funds) was $5,841,071 and the bank balances totaled $6,036,979. In addition to insurance
provided by the Federal Depository Insurance Corporation, deposits are held in banking
institutions approved by the State Treasurer of the State of Florida to hold public funds. Under
Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer
requires all Florida qualified public depositories to deposit with the Treasurer or other banking
institution eligible collateral. In the event of failure of a qualified public depository, the
remaining public depositories would be responsible for covering any resulting losses. The
Village's deposits at year end are considered insured for custodial credit risk purposes.
we
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
A reconciliation of deposit and investments as shown on the statement of net position and
statement of fiduciary net position for the Village is as follows:
By Category
Deposits $ 5,841,071
Petty cash 6,350
Investments 42,755,890
Total deposits and investments $48,603,311
Presented in the statement of net position
Governmental activities
Cash and cash equivalents $ 4,656,492
Restricted cash and cash equivalents 398,519
Investments 9,074,710
Business -type activities
Cash and cash equivalents 699,461
Total statements of net position 14,829,182
Presented in the statement of fiduciary net
position
Pension trust funds
Cash and cash equivalents
526,798
Investments
32,884,154
Agency funds
Cash and cash equivalents
363,177
Total fiduciary funds
33,774,129
Total deposits and investments $48,603,311
TnVeQtmentQ
In 2016, the Village implemented GASB Statement No. 72, Fair Value Measurement and
Application issued in February 2015. The Village categorizes its investments according to the
fair value hierarchy established by this Statement. The hierarchy is based on valuation inputs
used to measure the fair value of the asset as follows: Level 1 inputs are quoted prices in active
markets for identical assets; Level 2 inputs are significant other observable inputs to include
quoted prices for similar assets in active and non-active markets; Level 3 inputs are significant
unobservable inputs.
37
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The money market mutual funds consist of investments with financial institutions in open end,
institutional, money market funds complying with Securities and Exchange Commission (SEC)
Rule 2a7. Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair
value to report net assets used to compute share prices if certain conditions are met. Those
conditions include restrictions on the types of investments held, restrictions on the term -to -
maturity of individual investments and the dollar -weighted average of the portfolio, requirements
for portfolio diversification, and requirements for divestiture considerations in the event of
security downgrades and defaults, and required actions if the fair value of the portfolio deviates
from amortized cost by a specified amount.
The investment in Florida Prime consists of equity in an external, "20 -like" investment pool
managed by the State of Florida that was available to be withdrawn by the Village on an
overnight basis. The fair value of the position in Florida Prime was considered to be the same as
the Village's account balance (amortized cost) in the pool. As of September 30, 2016, there were
no redemption fees or maximum transaction amounts, or any other requirements that serve to
limit a participant's daily access to 100 percent of their account value.
Money market mutual funds and Florida Prime are exempt from the GASB 72 fair value
hierarchy disclosures.
Equity securities, exchange traded funds, and mutual funds classified in Level 1 of the fair value
hierarchy are valued based on prices quoted in active markets for those securities. Debt
securities classified in level 2 of the fair value hierarchy are valued using a matrix pricing
technique. Matrix pricing values securities based on the securities relationship to benchmark
quoted prices.
The American Core Realty Fund, LLC is a diversified open-end commingled fund that invests
primarily in high quality core income-producing office, industrial, retail, and multi -family
properties. This fund is an alternative investment vehicle valued using the net asset value (NAV)
provided by the investment manager of this fund. The NAV is based on the value of the
underlying assets owned by the fund minus its liabilities and then divided by the number of
shares or percentage of ownership outstanding. The NAV's unit price is quoted on a private
market that is not active. Investments valued at NAV are excluded from the fair value hierarchy
because the valuation is not based on actual market inputs but rather is quantified using the
fund's reported NAV.
Redemptions from the fund may be made quarterly upon ten days' notice. The units that are
subject to a redemption notice may be redeemed in full or in installments on a pro -rata basis as
funds become available for such redemptions and are subject to the availability of cash flow
arising from investment transactions, sales and other fund operations occurring in the normal
course of business. The fund is not required to liquidate or encumber assets or defer investments
in order to satisfy redemption requests.
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The value of this alternative investment is not necessarily indicative of the amount that could be
realized in a current transaction. The fair value may differ significantly from the value that would
have been used had a ready market for the underlying fund existed, and the differences could be
material. Future confirming events will also affect the estimates of fair value and the effect of
such events on the estimated fair value could be material.
As of September 30, 2016, the Village held the following investments:
Governmental Funds
U.S. Government and Agency
Mortgage Backed Securities
Municipal Bonds
Domestic Corporate Bonds
International Corporate Bonds
Fiduciary Funds
U.S. Government and Agency
Mortgage Backed Securities
Municipal Bonds
Domestic Corporate Bonds
International Corporate Bonds
Domestic Common Equity
Securities
International Common Equity
Securities
Fixed Income ETF
Equity ETF
Fixed Income Mutual Funds
Equity Mutual Funds
Investments Reported at NAV
Fiduciary Funds
American Core Realty Fund
Investments Reported at
Amortized Cost:
Governmental Funds
Money Market Mutual Funds
Florida Prime
Fiduciary Funds
Money Market Mutual Funds
Total Investments
Weighted
Average
Maturity
Fair Value Measurement
Fair Value Level 1 Level 2
1.73 Years
$ 55272,019 $
$ 5,272,019
2.65 Years
741,865
741,865
2.75 Years
183,371
183,371
1.85 Years
1,646,989
1,646,989
2.37 Years
1,069,929
1,069,929
6.76 Years
15.25 Years
15.82 Years
9.05 Years
6.02 Years
N/A
N/A
N/A
N/A
N/A
N/A
740,856
301,870
206,383
2,860,572
524,418
10,052,421
1,458,062
3,107,648
2,522,701
1,618,531
6,002,869
10,052,421
1,458,062
3,107,648
2,522,701
1,618,531
6,002,869
38,310,504 $ 24,762,232
N/A 2,244,002
N/A 160,537
50 Days 514,373
N/A 1,526,474
$ 42,755,890
M
740,856
301,870
206,383
2,860,572
524,418
$ 13,548,272
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Credit risk Credit risk is the risk that an issuer or other counter party to an investment will not
fulfill its obligations. The Village's investment policies limit its investments to high quality
investments to control credit risk. The table below outlines the Village's credit ratings for
investments with certain investments not specifically rated by both S&P and Moody's.
Investments:
Governmental Funds
U.S. Government and Agency
Mortgage Backed Securities
Municipal Bonds
Domestic Corporate Bonds
International Corporate Bonds
Money Market Mutual Funds
Florida Prime
Fiduciary Funds
U.S. Government and Agency
Mortgage Backed Securities
Municipal Bonds
Domestic Corporate Bonds
International Corporate Bonds
Common Equity Securities
Exchange Traded Funds
Mutual Funds
American Core Realty Fund
Money Market Mutual Funds
Total Investments
S&P Moody's
Rating Rating
Fair
Value
AA+
Aaa
$ 5,272,019
AAA to AA+
Aaa
741,865
AA-
Aaa
183,371
AA to A-
Aaa to A2
1,646,989
AAA to A+
Aaa to Aa3
1,069,929
NR
NR
160,537
AAAm
NR
514,373
NR
Aaa
740,856
NR
NR
301,870
AAA to AA
Aa2 to Aa3
206,383
AAA to BBB
Aaa to Baa3
2,860,572
AA- to A+
Aal to Aa3
524,418
NR
NR
11,510,483
NR
NR
5,630,349
NR
NR
7,621,400
NR
NR
2,244,002
NR
NR
1,526,474
$ 42,755,890
Interest rate risk — Interest rate risk is the risk that changes in interest rates will adversely affect
the fair value of an investment. Generally, the longer the time to maturity, the greater the
exposure to interest rate risks.
The Village limits its exposure to fair value losses resulting from rising interest rates by
structuring the investment portfolio so that the securities mature to meet cash requirements for
ongoing operations, thereby avoiding the need to sell securities on the open market prior to
maturity; and investing operating funds primarily in short-term securities, money market mutual
funds, or similar investment pools unless it is anticipated that long-term securities can be held to
maturity without jeopardizing the liquidity requirements. The Retirement Funds do not have a
formal investment policy that limits investment maturities as a means of managing exposure to
fair value losses arising from increasing interest rates.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Custodial credit risk — Custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The Village's investments are held by a
third party custodian, not in the name of the Village. Investments are held in book entry form at
the Federal Reserve by Depository Trust Company (DTC) via the custodian. The custodian
further segregates the Village's investments in their trust accounting system. The investments in
mutual funds and investment partnerships are considered unclassified pursuant to the custodial
credit risk categories of GASB Statement No. 3, because they are not evidenced by securities
that exist in physical or book -entry form.
Concentrations of credit risk — Concentration of credit risk is defined as the risk of loss attributed
to the magnitude of an investment in a single user. The Village places no limit on the amount it
may invest in any one issuer, except those in the Fire and Police Retirement Fund. Not more
than five (5) percent of the Fund's assets shall be invested in the common stock or capital stock
of any one issuing company.
Investing in Foreign Markets — Investing in foreign markets may involve special risks and
considerations not typically associated with investing in companies in the United States of
America. These risks include revaluation of currencies, high rates of inflation, repatriation
restrictions on income and capital, and future adverse political, social, and economic
developments. Moreover, securities of foreign governments may be less liquid, subject to
delayed settlements, taxation on realized or unrealized gains, and their prices are more volatile
than those of comparable securities in U.S. companies.
Investing in Real Estate. — The Village is subject to the risks inherent in the ownership and
operation of real estate. These risks include, among others, those normally associated with
changes in the general economic climate, trends in the industry including creditworthiness of
tenants, competition for tenants, changes in tax laws, interest rate levels, the availability of
financing and potential liability under environmental and other laws.
Authorized Investments —The Village has adopted an investment policy that applies to all the
investment activity except the Employees' Pension Funds, which are organized and administered
separately, as listed below, or for funds related to the issuance of debt where there are other
existing policies or indentures in effect for such funds.
41
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
The Village is authorized to invest its funds as follows:
1. Banks, Qualified Public Depositories with a collateral pledge level of twenty-five percent
or fifty percent;
2. U.S Treasury obligations and obligations the principal and interest of which are backed
or guaranteed by the full faith and credit of the U.S Government;
3. Debt obligations, participations or other instruments issued or fully guaranteed by any
U.S. Federal agency, instrumentality or government sponsored enterprise,
4. Supra -Nationals, U.S. dollar denominated debt obligations of a multilateral organization
of governments where the U.S. is a shareholder and voting member with a minimum
credit quality rating of A -1/P-1, AA-/Aa3 or equivalent,
5. U.S. dollar denominated corporate notes, bonds or other debt obligations issued or
guaranteed by a domestic or foreign corporation, financial institution, non-profit or other
entity with a minimum credit quality rating of A -1/P-1, A -/A3 or equivalent,
6. Obligations, including both taxable and tax - exempt, issued or guaranteed by any State,
territory or possession of the United States, political subdivision, public corporation,
authority, agency board, instrumentality or other unit of local government of any State or
territory with a minimum credit quality rating of SP-1/MIG 1, A -/A3 or equivalent,
7. Mortgage- backed securities (MBS), backed by residential, multi -family or commercial
mortgages, that are issued or fully guaranteed as to principal and interest by a U.S.
Federal agency or government sponsored enterprise, including but not limited to pass-
throughs, collateralized mortgage obligations (CMOs) and REMICs,
8. Asset-backed securities ( ABS ) whose underlying collateral consists of loans, leases or
receivables, including but not limited to auto loans /leases, credit card receivables,
student loans, equipment loans /leases, or home -equity loans with a minimum credit
quality rating of A -1/P-1, AAA/Aaa or equivalent,
9. U.S. dollar denominated commercial paper issued or guaranteed by a domestic or foreign
corporation, company, financial institution, trust or other entity, including both unsecured
debt and asset-backed programs with a minimum credit quality rating of A -1/P-1 or
equivalent,
10. Shares in open-end and no-load money market mutual funds, provided such funds are
registered under the Investment Company Act of 1940 and operate in accordance with
Rule 2a-7 with a minimum credit quality rating of AAAm/Aaa-mf or equivalent,
11. State, local government or privately- sponsored investment pools that are authorized
pursuant to state law with a minimum credit quality rating of AAAm/Aaa-mf or
equivalent.
42
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
The Village General Employees' Retirement Fund is authorized to invest its funds as follows:
1. Interest-bearing time deposits in qualified public depositories, as defined in Chapter 280,
Florida Statutes;
2. The Local Government Surplus Funds Trust Fund or any intergovernmental investment
pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in
Chapter 163, Florida Statutes;
3. Securities and Exchange Commission registered money market funds with the highest
credit quality rating from a nationally recognized rating agency minimum credit quality
rating of A- I from S&P or P-1 from Moody's;
4. Obligations issued by the U.S. Government or obligations guaranteed by agencies or
instrumentalities of the U.S. Government;
5. Foreign Securities, including convertible bonds, convertible preferred issues and
preferred stock;
6. Equities, including publically traded REITS, commodities, convertible bonds, convertible
preferred issues and preferred stock. Foreign security convertibles are limited to those
that settle in U.S. dollars and are traded on one or more of the nationally recognized
national exchanges.
7. Bonds or any other evidence of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States, any state or organized territory of the
United States, or the District of Columbia, provided the issues are traded on any one (1)
or more of the recognized national stock exchanges or over the counter and holds a
minimum credit rating of BBB from S&P or Baa from Moody's, except that up to 20% of
the fixed income portfolio may be held in securities that do not meet this criteria. The
weighted average quality rating of the portfolio will be A or better and the effective
duration of the portfolio shall be kept within 20% of Barclays Aggregate Index;
8. Comingled stock, bond or money market funds.
9. Securities of, or interest in, any open-end or closed-end management -type investment
company or investment trust registered under the Investment Company Act of 1940, 15
U.S.C. sections 80a -I et seq., as amended from time to time, provided that the portfolio
of such investment company or investment trust is limited to obligations of the United
States Government or any agency or instrumentality thereof and to repurchase
agreements fully collateralized by such United States Government obligations, and
provided that such investment company or investment trust takes delivery of such
collateral either directly or through an authorized custodian;
10. Other investments authorized by law or by ordinance by the Village.
43
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 3 — DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
Investments of the Fire and Police Retirement Fund can consist of the following:
1. Time or savings accounts of a national bank, a state bank insured by the Federal Deposit
Insurance Corporation, or a savings, building and loan association insured by the Federal
Deposit Insurance Corporation;
2. Obligations issued by the U.S. Government, or an agency or instrumentality of the U.S.
Government, as well as obligations guaranteed by agencies or instrumentalities of the
U.S. Government, including mortgage -related or asset-backed securities;
3. Bonds, stocks, or any other evidence of indebtedness issued or guaranteed by a
corporation organized under the laws of the United States, any state or organized territory
of the United States, or the District of Columbia, provided:
a. The corporation is listed on any one (1) or more of the recognized national stock
exchanges and holds a rating in one of the three (3) highest classifications by a
major rating service; and
b. The Board shall not invest more than five (5) percent of its assets in the common
stock, capital stock, bonds or indebtedness of any one (1) issuing company, nor
shall the aggregate investment of in any one (1) issuing company exceed five (5)
percent of the outstanding capital stock of that company, nor shall the aggregate
of its investments in equities at cost exceed sixty (60) percent of the pension
funds' assets;
4. Notwithstanding any provision of this section to the contrary, the Board is specifically
authorized to invest in foreign securities to the extent authorized by Sections 175.071(1)
and 185.06(1)(b), Florida Statutes;
5. Fixed income investments defined as preferred issues and fixed income securities
provided all issues shall meet or exceed S&P's A or Moody's A credit rating;
6. Money market funds, defined as fixed income securities having a maturity of less than
one year provided all issues shall meet or exceed S&P's A 1 or Moody's P 1 credit rating;
7. Bonds issued by the State of Israel;
8. Purchases in commingled real estate funds.
EI
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 4 — RECEIVABLES
Receivables at September 30, 2016, were as follows:
171,900
General
13,894,420
Fund
Utility franchise fees & taxes
$ 383,010
Conroy Drive assessment
3,474
Other accounts receivable
52,862
Total accounts receivable
$ 439,346
NOTE 5 — CAPITAL ASSETS
Country
Club Total
$ $ 383,010
3,474
17,830 70,692
$ 17,830 $ 457,176
Capital Assets activity for the year ended September 30, 2016, was as follows:
Primary Government
Governmental Activities:
Capital assets not being depreciated:
Land
Construction in progress
Capital assets being depreciated:
Buildings
Improvements
Machinery and equipment
Vehicles
Total at historical cost:
Less accumulated depreciation for:
Buildings
Improvements
Machinery and equipment
Vehicles
Total accumulated depreciation
Governmental activities capital
assets, net
Beginning
$ 2,055,889
266,708
282,084 (527,621)
Ending
$ 2,055,889
21,171
9,241,935
171,900
9,413,835
13,894,420
400,699
(119,139)
14,175,980
3,090,260
276,585
(147,027)
3,219,818
4,413,449
444,980
(186,924)
4,671,505
32,962,661
1,576,248
(980,711)
33,558,198
(5,467,024)
(258,777)
(5,725,801)
(7,869,223)
(896,046)
119,139
(8,646,130)
(1,985,863)
(188,988)
147,027
(2,027,824)
(2,929,535)
(261,897)
135,536
(3,055,896)
(18,251,645)
(1,605,708)
401,702
(19,455,651)
$ 14,711,016
$ (29,460)
$ (579,009) $
$ 14,102,547
M
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 5 — CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 90,058
Public safety 370,571
Public works 677,700
Community development 23,243
Leisure services 444,136
Total depreciation expense, governmental activities $1,605,708
Construction Commitments
The governmental activities has an agreement for the design and construction administration
services for the new Country Club for $962,000.
Intangible Assets
The intangible asset consists of the right to the availability and use of reclaimed water resulting
from an agreement with Seacoast Utility Authority. The asset had an original value of $50,377
and is being amortized on a straight line basis over the period of the expected benefit of ten
years.
Beginning
Ending
Business -type activities:
Balance
Additions
Deletions Transfers
Balance
Capital assets not being depreciated:
Land
$ 1,051,311
$
$ $
$ 1,051,311
Construction in progress
227,818
227,818
Capital assets being depreciated:
Buildings
1,405,035
1,405,035
Improvements
6,095,930
6,095,930
Machinery and equipment
369,092
19,394
(143,919)
244,567
Vehicles
413,627
(349,927)
63,700
Total at historical cost:
9,334,995
247,212
(493,846)
9,088,361
Less accumulated depreciation for:
Buildings
(1,063,286)
(25,827)
(1,089,113)
Improvements
(2,867,690)
(302,665)
(3,170,355)
Machinery and equipment
(317,991)
(16,977)
112,771
(222,197)
Vehicles
(298,191)
(29,494)
272,469
(55,216)
Total accumulated depreciation
(4,547,158)
(374,963)
385,240
(4,536,881)
Business -type activities capital
assets, net
$ 4,787,837
$ (127,751)
$ (108,606) $
$ 4,551,480
Construction Commitments
The governmental activities has an agreement for the design and construction administration
services for the new Country Club for $962,000.
Intangible Assets
The intangible asset consists of the right to the availability and use of reclaimed water resulting
from an agreement with Seacoast Utility Authority. The asset had an original value of $50,377
and is being amortized on a straight line basis over the period of the expected benefit of ten
years.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 6 — LONG TERM LIABILITIES
Change in Long -Term Liabilities
Long-term liability activity for the year ended September 30, 2016, was as follows:
Governmental activities:
Claims and settlements
OPEB (see Note 13)
Net pension liability
(see Note 8)
Compensated absences
payable
Total
Business -type activities:
Loans payable
Capital leases
OPEB (see Note 13)
Compensated absences
payable
Total
Beginning Ending
Balance Additions Reductions Balance
Amount
Due
Within
$ 50,000 $ $ $ 50,000 $
2,210,054 266,240 2,476,294
4,561,092 2,021,964 6,583,056
1,266,719 1,056,794 (1,127,617) 1,195,896 863,482
$ 8,087,865 $ 3,344,998 $ (1,127,617) $ 10,305,246 $ 863,482
$ 2,824,987 $
$ (140,074)
$ 2,684,913 $ 295,287
147,767
(147,767)
96,753 15,268
112,021
24,775 55,840
(20,078)
60,537 46,013
$ 3,094,282 $ 71,108
$ (307,919)
$ 2,857,471 $ 341,300
Governmental activities other postemployment benefit obligations, compensated absences and
net pension liabilities are expected to be paid out of the general fund.
47
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 6 — LONG TERM LIABILITIES (Continued)
Loans Payable
$4,893,673 Promissory Notes
The Village Council adopted Resolution No. 23-2006 authorizing the issuance of a note in the
amount of $4,893,673 to finance certain capital expenditures relating to the municipal golf
course and country club. The revenues of the Country Club are pledged to secure the loan.
Principal and interest payments are due semi-annually in the amount of $199,079, with a final
maturity date of April 1, 2024. The interest rate on the loan is 4.11% and is subject to
adjustment in the event of taxability of the interest on this note. As of September 30, 2016, the
principal amount outstanding was $2,684,913 and was for the purpose of business -type activities.
Annual debt service requirements to maturity are as follows:
Business -type activities:
Year Ending
2017
2018
2019
2020
2021
2022-2024
Claims and Settlements
Principal
$ 295,287
307,719
320,677
333,990
348,241
1,078,999
$ 2,684,913
Interest Total
$ 102,872
90,440
77,482
64,169
49,918
59,303
$ 444,184
$ 398,159
398,159
398,159
398,159
398,159
1,138,302
$ 3,129,097
Effective October 1, 2006, the Village discontinued its participation in the Southeast Risk
Management Association (SERMA) and joined the Florida Municipal Insurance Trust (FMIT).
However, as a former participant in SERMA, the Village is liable for claims incurred through
September 30, 2006. In the fiscal year ending September 30, 2014, SERMA was dissolved and
the outstanding claims were transferred to the Village's current workman's compensation
administrator. As part of the dissolution, the Village received $33,846 from SERMA as its
portion of the claims reserve balance, this was recorded as an accrued liability in the General
Fund. At this time, the Village believes that the $59,343 recorded in the General Fund along
with the $50,000 recorded as a long-term liability is adequate to cover the outstanding claims.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 7 — RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts: theft of, damage to, and
destruction of assets; errors and omissions; and natural disasters.
The Village currently reports all of its risk management activities in the General Fund. Claims
expenditures and liabilities are reported when it is probable that a loss has occurred and the
amount of the loss can be reasonably estimated. These losses include an estimate of claims that
have been incurred but not reported.
The Village is covered by Florida Statutes under the Doctrine of Sovereign Immunity which
effectively limits the amount of liability of municipalities to individual claims of
$200,000/$300,000 for all claims relating to the same incident. However, under certain
circumstances, a plaintiff can seek to recover damages in excess of statutory limits by
introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do
not apply to claims filed in federal courts.
There have been no significant reductions in insurance coverage in the prior year. No
settlements exceeded insurance coverage for the past three years.
NOTE 8 — EMPLOYEE RETIREMENT PLANS
The Village maintains the following two separate single employer defined benefit plans: Village
of North Palm Beach Fire and Police Retirement Fund (F&P), covering firefighters and police
officers, and Village of North Palm Beach General Employees Retirement Fund (GERF),
covering substantially all other full-time Village employees. Both plans are reported as pension
trust funds and included as part of the Village's reporting entity. The Police and Fire Fund issued
separate stand-alone financial statements for the year ended September 30, 2016, the report may
be obtained from the Village Clerk, at the Village of North Palm Beach, 501 U.S. Highway 1,
North Palm Beach, Florida 33408. The General Employees Plan does not issue separate
financial statements.
Each plan has its own board that acts as plan administrator and trustee: The Fire and Police
Retirement Fund Board of Trustees consists of five members (5); four (4) of whom were elected
by a majority of the members of the plan. Two (2) of the elected members are certified
firefighters of the Village and two (2) are certified police officers of the Village. The fifth
member of the board is a legal resident of the Village and is appointed by the Village council.
The General Employees Retirement Board consists of five members (5); two (2) of whom were
employees elected by a majority of the members of the plan, two (2) of the members is a legal
resident of the Village and appointed by the Village council, the two (2) council appointed
members of the Board shall appoint a member of the general public who has never been
employed by the Village to serve as the fifth member of the Board. Each plan's assets may only
be used for the payment of benefits to the members and beneficiaries of the plan in accordance
with the terms of each plan document. The costs of administering each plan are financed in the
appropriate pension trust fund.
LUG
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
SUMMARY OF SIGNIFICANTACCOUNTING POLICIES
All Retirement Plans
Basis of Accounting. The retirement plans are reported on the accrual basis of accounting. The
plans' fiduciary net position have been determined on the same basis used by the pension plans.
Plan member and state contributions are recognized as revenues in the period that the
contributions are due. Employer contributions to each plan are recognized when due and the
employer has made a formal commitment to provide the contributions. Benefits and refunds are
recognized when due and payable in accordance with the terms of each plan.
Method Used to Value Investments. Investments are reported at fair value and are managed by
third party money managers.
Investments Concentrations. There were no investments representing concentrations of 5% or
more of net plan assets in investments that are not issued or guaranteed by the U.S. government.
PLAN DESCRIPTION. INVESTMENT AND CONTRIBUTION INFORMATION
The following schedule is provided for general information purposes only and is derived from
the respective actuarial reports and Village information for the two retirement plans. Plan
participants should refer to the appropriate source documents for more complete information on
the plans.
Plan Description:
Authority
Asset Valuation:
Reporting
Legal Reserves
Long -Term Receivable
Internal/Participant Loans
General Employees' Fire and Police
Village Ordinance Village Ordinance/State
Fair Value Fair Value
None None
None None
None None
Membership of each plan consisted of the following at October 1, 2015:
c
GERF
F&P
Inactive Plan Members or Beneficiaries
currently receiving benefits
27
25
Inactive Plan Members entitled to but
not yet receiving benefits
41
9
Active Plan Members
40
53
Total
108
87
c
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2010-07. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code. The Plan provides retirement benefits as well as death
benefits. All full time general employees who are not sworn police officers or firefighters shall
become members of the system on October 1St following completion of 12 months of
employment as a condition of employment. For those employees retired before February 1,
1982, those employees hired after September 30, 2000, or those employees hired before October
1, 2000, who elect to contribute an extra 2%, a 3% Cost of Living increase is paid annually from
the Plan. Authority to establish and amend the benefit provisions of the plan rests with the
Village Council.
All benefits vest based on the following years of credited service:
Years of
Credited Service Vested %
Under 5 0%
5 or 6 50%
7 or 8 75%
9 or more 100%
Employees become eligible for normal retirement benefits after attaining the age of 60 and
completing nine years of credited service, or attaining the age of 65 (depending on employee
contribution rate). The normal retirement benefit consists of a life annuity, options available,
(subject to cost of living increases not to exceed 3% a year), of either 2%, 2.25%, or 2.5%
(depending on employee contribution rate) of Average Monthly Earnings (AME) times credited
service up to 20 years plus 1% of AME times credited service over 20 years. Early retirement
benefits can be received at age 55. The benefit is determined as for normal retirement and
payable at normal retirement date or payable immediately after reduction by 5% for each year by
which the benefit commencement date precedes the normal retirement date. If an active member
dies, his beneficiary receives a refund of member contributions without interest. For a member
who is age 55 and has at least five years of service but who dies before commencement of
retirement benefits, a monthly benefit is payable to the designated beneficiary; the benefit is
calculated as though the member had retired on his date of death and payable according to the
option elected by the employee. For an active member who has at least five years of credited
service and dies prior to reaching normal retirement date, a benefit equal to his vested accrued
benefit will be paid to his beneficiary for ten years.
51
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
If an employee terminates his employment, he is entitled to the following:
- With less than five years of credited service, a refund of member contributions
without interest and no other benefit.
- With five or more years of credited service, a refund of member contributions, the
vested accrued benefit payable at normal retirement date or at any time after age 55
is attained, with the benefit being subject to the same reduction as for early
retirement benefits. The vesting schedule is listed above.
"Average Monthly Earnings" is the average during the 5 years within the last 10 years of
employment which produces the highest average.
"Credited Service" consists of the total number of years and fractional parts of years of actual
service with the Village and shall apply to an employee whose employment is terminated with
the Village and who recommences fulltime employment within two years from the date of
termination.
Asset Allocation. The plan's adopted asset allocation policy as of September 30, 2016, is as
follows:
Asset Class
Target Allocation
Domestic equity
45%
International equity
15
Domestic bonds
40
Total
100%
Rate of Return. For the year ended September 30, 2016, the annual money -weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 9.72 percent.
The money -weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
Contributions. General employees may contribute 6%, 4%, 2% or 0% of earnings as elected by
the employee, with the retirement benefit received being based on the amount contributed. The
Village is required to contribute the amount necessary to fund the Plan properly according to the
Plan's actuary. Contribution requirements of plan members and the Village are established and
may be amended by the Village Council.
52
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement Ssy tem
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2015-05. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code. The plan provides retirement benefits as well as death
and disability benefits. All benefits vest after ten years of credited service. All fulltime police
officers or firefighters are eligible for membership immediately upon hire. Previously, members
were not eligible until October 1St following completion of 12 months of employment. Cost of
living adjustments (COLA) are provided annually each October 1, to reflect changes in CPI
(subject to maximum increases or decreases of 3% per year). Authority to establish and amend
the benefit provisions of the plan rests with the Village Council. Employees become eligible for
normal retirement benefits after attaining the age of 55, or the date on which the member attains
age 52 and 25 credited years of service. Previously, employees became eligible for normal
retirement benefits after attaining the age of 55, only. The normal retirement benefit consists of
ten years certain and life thereafter, with other options available, (subject to cost of living
adjustments not to exceed 3% a year), of 2.5% of AME times the years of credited services, with
a maximum benefit of 60% of AME. Members are eligible for non -service connected disability,
after ten years of credited service and a total and permanent disability. For service connected
disability, a total and permanent disability with no service requirement, the disability benefit
consists of a ten year certain and life annuity that can be provided by the single -sum value of the
member's accrued pension benefit, but is at least 42% of AME for service connected disability
and at least 25% of AME for non -service connected disability. See the description of the
General Employees' Retirement System for the remainder of the benefits, except that early
retirement and termination benefits for vested members can be received at age 50.
Asset Allocation. The plan's adopted asset allocation policy as of September 30, 2016, is as
follows:
Asset Class Target Allocation
Domestic equity 50%
International equity 10
Domestic bonds 30
Real estate 10
Total 100%
Rate of Return. For the year ended September 30, 2016, the annual money -weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 8.25 percent.
The money -weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
53
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement Ssy tem
Contributions. Firefighter members are required to contribute 3.50% from April 1, 2015 to
March 31, 2016 and 5.00% thereafter of their basic compensation to the plan. Non -collectively
bargained Police Officer are required to contribute 2% their basic compensation . Collectively
bargained Police Officer members are required to contribute 4.00% of their basic compensation
to the plan. The Village is required to contribute the remaining amount to fund the plan using
the Entry Age Actuarial Cost Method. Contribution requirements of plan members and the
Village are established and may be amended by the Village Council.
The Florida Constitution requires local governments to make the actuarially determined
contribution. The Florida Division of Retirement reviews and approves each local government's
actuarial report prior to its being approved for use for funding purposes. Additionally, the State
collects locally authorized insurance premium surcharges which can only be distributed after the
State has ascertained that the local government has met its actuarial funding requirement for the
then most recently completed fiscal year. Contributions to the Plan from the State of Florida
totaled $310,200 during the fiscal year ended September 30, 2016.
All Retirement Plans
Net Pension Liability. The components of net pension liability of the Village on September 30,
2016 were as follows:
Total pension liability
Plan fiduciary net position
Village's net pension liability
Plan fiduciary net position as a
percentage of total pension liability
General
Employees
Fire and
Police
$ 165487,216 $ 22,602,715
(13,500,269) (19,940,073)
$ 2,986,947 $ 2,662,642
81.88% 88.22%
The pension liability of the General Employees plan increased by a net of $928,295 due to
assumption changes in the discount rate, investment rate of return, inflation rate, salary scale, and
the withdrawal and mortality rates.
The pension liability of the Fire and Police plan decreased by a net of $1,223,780 due to
assumptions changes in the salary scale, normal retirement rates, discount rate, investment rate of
return, withdrawal and mortality rates, and the actuarial cost method.
W
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Actuarial Assumptions . The total pension liability was determined by an actuarial valuation as
of October 1, 2015 updated to September 30, 2016 using the following actuarial assumptions
applied to the September 30, 2016 measurement period.
Inflation
Salary increases
Investment rate of return
Mortality
General Employees
2.75%
Service based
6.75%
Female: RP2000,
100%Annuitant White
Collar, Scale BB
Male: RP2000,
50%Annuitant White
Collar/50% Annuitant
Blue Color, Scale BB
Fire and Police
2.50%
Service based
7.85%
Female: RP2000
Generational,
100%Annuitant White
Collar, Scale BB
Male: RP2000
Generational,
10%Annuitant White
Collar/90% Annuitant
Blue Color, Scale BB
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best -estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of arithmetic real rates of return for each major
asset class included the pension plan's target asset allocation as of September 30, 2016, are
summarized in the following table:
Long -Term Expected Real Rate of
Asset Class Return
Domestic equity
International equity
Domestic bonds
Real estate
General
Employees
6.75%
6.75%
2.00%
N/A
55
Fire and
Police
7.50%
8.50%
2.50%
4.50%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Discount Rate. The discount rate used to measure the total pension liability was 6.75 percent for
the General Employees Retirement Fund and 7.85 percent for the Fire and Police Retirement
Fund. The projection of cash flows used to determine the discount rates assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate. Based on those assumptions, the pension plans' fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate.
The following
presents the net pension liabilities of the Village, calculated using the discount rates above, as
well as what the Village's net pension liabilities would be if it were calculated
using a discount
rate that is one percentage -point lower or one percentage -point higher than the current rate.
General Employees' Retirement System
Current
Discount
1% Decrease Rate
1% Increase
5.75% 6.75%
7.75%
Village's net pension liability 5.436.118 2.986.947
$ 972,220
Fire and Police Retirement System
Current
Discount
1% Decrease Rate
1% Increase
6.85% 7.85%
8.85%
Village's net pension liability 5,938,411 2,662,642
(17.7971
All Retirement Plans
The Village's total pension liability, plan fiduciary net position, net pension liability, pension
related deferred outflows and inflows, and pension expense for the fiscal year ended September
30, 2016, are reported using a measurement date of September 30, 2015.
we
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Actuarial Assumptions . The total pension liability was determined by an actuarial valuation as
of October 1, 2014 updated to September 30, 2015 using the following actuarial assumptions
applied to the September 30, 2015, measurement period.
Inflation
Salary increases
Investment rate of return
Mortality
General Employees
4.00%
5.50%
7.50%
RP -2000 Combined
Healthy Participant
Mortality Table for
males and females with
mortality improvement
projected to all future
years after 2000 using
Scale AA
Fire and Police
3.00%
6.00%
7.90%
RP -2000 Table with no
projection - Based on a
study of over 650 public
safety funds, this table
reflects a 10% margin for
future mortality
improvements. (Disabled
lives set forward 5 years)
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best -estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of arithmetic real rates of return for each major
asset class included the pension plan's target asset allocation as of September 30, 2015, are
summarized in the following table:
57
Target
Long -Term Expected Real
Asset Class
Allocation
Rate of Return
General
Fire and
General Fire and
Employees
Police
Employees Police
Domestic equity
45%
50%
6.97% 7.95%
International equity
15
10
5.60% 8.00%
Domestic bonds
40
30
4.44% 2.7%
Real estate
N/A
10
N/A 6.00%
Total
100%
100%
57
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Discount Rate. The discount rate used to measure the total pension liability was 7.5 percent for
the General Employees Retirement Fund and 7.90 percent for the Fire and Police Retirement
Fund. The projection of cash flows used to determine the discount rates assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate. Based on those assumptions, the pension plans' fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
General Employees' Retirement System
Changes in Net Pension Liability
Using a measurement date of September 30, 2015, the components of the net pension liability
reported by the Village at September 30, 2016, were as follows:
Total
Fiduciary
Net
Pension
Net
Pension
Liability
Position
Liability
Description (a)
(b)
(a) -(b)
and actual experience
(329,040)
Balances at September 30, 2014 $ 13,812,555
$ 11,929,879
$ 1,882,676
Changes due to
Service cost
317,676
317,676
Interest
1,048,746
1,048,746
Difference between expected
and actual experience
(329,040)
(329,040)
Employer contributions
464,189
(464,189)
Employee contributions
125,738
(125,738)
Benefit payments and refunds
(293,890)
(293,890)
Net investment income
(96,116)
96,116
Administrative expenses
(20,655)
20,655
Total changes
743,492
179,266
564,226
Balances at September 30, 2015
$ 14,556,047
$ 12,109,145
$ 2,446,902
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement Ssy tem (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Village's net pension liability
Current
Discount
1% Decrease Rate
6.50% 7.50%
4.428.759 2.446.902
Pension expense and deferred outflows and inflows of resources
1% Increase
8.50%
$ 793,236
For the fiscal year ended September 30, 2016, the Village recognized pension expense of
$369,221. In addition, the Village reported deferred outflows of resources and deferred inflows
of resources related to the Plan from the following sources:
Deferred
Deferred
Outflows
Inflows
Description of Resources
of Resources
Net difference between projected and actual
earnings on plan investments
Differences between expected and actual
experience
Village plan contributions subsequent
to the measurement date
Total
M
$ 800,947 $ 164,158
207,173
458,615
$ 1,259,562 $ 371,331
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement Ssy tem (Continued)
Pension expense and deferred outflows and inflows of resources (Continued)
The deferred outflows of resources totaling $458,615 resulting from Village contributions to the
plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to the plan will be recognized in
pension expense as follows:
Year ended September 30: Amount
2017
$ 235651
2018
605212
2019
1455517
2020
2005236
2022
Thereafter
$ 429,616
Fire and Police Retirement System
Sensitivitv of the Net Pension Liabilitv to Chanizes in the Discount Rate
Current
Discount
1% Decrease Rate 1% Increase
6.90% 7.90% 8.90%
Village's net pension liability 7,202,336 4.136.154 $ 1.605.361
:1
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Changes in Net Pension Liability
Using a measurement date of September 30, 2015, the components of the net pension liability
reported by the Village at September 30, 2016, were as follows::
Total
Fiduciary
Net
Pension
Net
Pension
Liability
Position
Liability
Description (a)
(b)
(a) -(b)
Differences between expected
Balances at September 30, 2014 $ 19,469,263
$ 16,790,847
$ 2,678,416
Changes due to
Service cost
810,654
810,654
Interest
1,555,518
1,555,518
Change in excess state money
67,645
67,645
Differences between expected
and actual experience
483,189
483,189
Changes of benefit terms
1,682
1,682
Employer contributions
975,733
(975,733)
Employer contributions -state
298,340
(298,340)
Employee contributions
151,450
(151,450)
Employee contributions buy back
65,446
65,446
Benefit payments and refunds
(600,579)
(600,579)
Net investment income
111,884
(111,884)
Administrative expenses
(76,457)
76,457
Total changes
2,383,555
925,817
1,457,738
Balances at September 30, 2015
$ 21,852,818
$ 17,716,664
$ 4,136,154
321
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2016, the Village recognized pension expense of
$1,312,101. In addition, the Village reported deferred outflows of resources and deferred
inflows of resources related to the Plan from the following sources:
Description
Net difference between projected and actual
earnings on plan investments
Differences between expected and actual
experience
Change of assumptions
Village plan contributions subsequent
to the measurement date
Total
Deferred
Deferred
Outflows
Inflows
of Resources
of Resources
$ 832,938 $
402,658
175,820
1,280,036
$ 2,691,452 $
The amounts reported as a change of assumptions resulted from lowering the investment rate of
return form 8% to 7.9%
The deferred outflows of resources totaling $1,280,036 resulting from Village contributions to
the plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2016. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to the plan will be recognized in
pension expense as follows:
Year ended September 30: Amount
2017
$ 310,224
2018
3105225
2019
3105226
2020
3655045
2021
1155696
Thereafter
$ 1,411,416
:►
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 8 — EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Summarized information
The Village's total pension liability, plan fiduciary net position, net pension liability, pension
related deferred outflows and inflows, and pension expense for the fiscal year ended September
30, 2016, using a measurement date of September 30, 2015, are as follows:
Total pension liability
Plan fiduciary net position
Net pension liability
Deferred outflows of resources
Deferred inflows of resources
Pension expense
General Fire and
Employees Police
$ 14,556,047
$ 21,852,818
12,109,145
17,716,664
2,446,902
4,136,154
1,259,562
2,691,452
371,331
379,922
1,312,101
Total
$ 36,408,865
29,825,809
6,583,056
3,951,014
371,331
1,692,023
At September 30, 2016, the Village did not have any payables to the General Employees or to
the Fire and Police plans for outstanding contributions.
NOTE 9 — ON -BEHALF PAYMENTS
The state makes a contribution to the Fire and Police Officers' Retirement System from the
firefighters' and police officers' Insurance Premium Tax. For the fiscal year ended September
30, 2016, $310,200 was recorded as revenues and expenditures in the On -Behalf Pension
Contribution Special Revenue Fund relating to on -behalf payments received from the state.
M01
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 10 — PENSION PLAN FINANCIAL INFORMATION
Generally accepted accounting principles (GAAP) requires that financial statements for
individual pension plans be presented in the notes to the financial statements of the primary
government if separate GAAP financial reports have not been issued. The General Employees'
pension fund does not have a separate GAAP report issued, and the financial information as of
September 30, 2016, is presented below.
STATEMENT OF FIDUCIARY NET POSITION
General
Employees'
Pension
Assets
Cash and cash equivalents $ 282,653
Investments:
Fixed income exchange traded funds
3,107,648
Equity exchange traded funds
2,482,676
Fixed income mutual funds
1,618,531
Equity mutual funds
6,002,869
Accrued dividends and interest
4,315
Accounts receivable
12,554
Total assets
13,511,246
Liabilities
Accounts payable 10,977
Net position
Held in trust for pension benefits and
other purposes $ 13,500,269
:A
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 10 — PENSION PLAN FINANCIAL INFORMATION (Continued)
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
General
Employees'
Pension
Additions
Contributions
Employer
$ 458,615
Plan members
126,947
Total contributions
585,562
Investment earnings
Dividends and interest
379,460
Net (decrease) in the fair value
of investments
832,260
Less investment expense
(50,190)
Total investment earnings
1,161,530
Total additions
1,747,092
Deductions
Administration
24,794
Benefits
331,174
Total deductions
355,968
Change in net position
1,391,124
Net position - beginning
12,109,154
Net position - ending
$ 13,500,269
NOTE 11 — DEFINED CONTRIBUTION PLAN
Effective October 1, 2006, all employees of the Village may participate in one of three Money
Purchase Plans that are qualified Defined Contribution Plans adopted under the provisions of
Internal Revenue Code Section 401(a). The three pension plans include Directors, General
Employees, and Municipal Employees. The defined contribution plans are administered by
International City/County Management Association and Retirement Corporation (ICMA-RC).
The ICMA-RC is a nonprofit corporation organized and existing under the laws of the State of
Delaware. Contribution requirements of employees' and the Village are established and may be
amended by the Village Council.
The vesting period for each defined contribution plan is five years, with a vesting of zero percent
in the first year, and a vesting of twenty-five percent for each year thereafter. While the plans
will not provide for retroactive funding, the vesting period shall run from each employee's
original date of hire. If an employee terminates before becoming fully vested, forfeited amounts
will be used to reduce future Village contributions. No loans are permitted by the plan.
:•
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 11 — DEFINED CONTRIBUTION PLAN (Continued)
The normal retirement age for the plan shall be age sixty. There is no waiting period for
participation in the plan. The minimum age for participation is eighteen. The Village contributes
15% of participant earnings for the plan year. Earnings include regular and bonus compensation,
but do not include overtime or commissions. Employee contributions are voluntary, after-tax
contributions that are not matched by the Village. Employees may contribute 3%, 5%, 10%, or
15% of earnings to the plan. Contributions are remitted to the trusts every payroll period.
Because the Village has little administrative involvement and does not perform the investing
function for funds in the plans, the Village's activities do not meet the criteria for inclusion in the
fiduciary funds of a government. Consequently, the plans are not included in the Village's financial
statements.
Plan detail for participating employees at September 30, 2016, is listed below:
Employee contributions
Village pension expense
Forfeitures
Payable as of fiscal year end
General
Directors Employees
$ 34,164 $ 40,302
87,545 141,236
16,601 5,945
NOTE 12 — DEFERRED COMPENSATION PLAN ASSETS
Municipal
Employees Total
$ 50,699 $ 125,165
139,388 368,169
17,209 39,755
Employees of the Village may participate in a deferred compensation plan adopted under the
provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with Respect to
Service for State and Local Governments).
The deferred compensation plan is available to all employees of the Village. Under the plan,
employees may elect to defer a portion of their salaries and avoid paying taxes on the deferred
portion until the withdrawal date. The deferred compensation amount is not available for
withdrawal by employees until termination, retirement, death, or unforeseeable emergency. A third
party administers the deferred compensation plan.
In 1998, the Village Adopted GASB -32, Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans. The Village modified its Deferred
Compensation Plan to conform with the changes in the Internal Revenue Code brought about by the
Small Business Job Protection Act of 1996 (the "Act"). The Act requires that eligible deferred
compensation plans established and maintained by governmental employers be amended to provide
that all assets of the plan be held in trust, or under one or more appropriate annuity contracts or
custodial accounts, for the exclusive benefit of plan participants and their beneficiaries. As a result
of this change, these plan assets are not property of the Village and are not subject to the claims of
the Village's general creditors.
Me
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 12 — DEFERRED COMPENSATION PLAN ASSETS (Continued)
Because the Village has little administrative involvement and does not perform the investing
function for funds in the Plan, the Village's activities do not meet the criteria for inclusion in the
fiduciary funds of a government.
NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS
The Village implemented Governmental Accounting Standards Board Statement 45 (GASB 45),
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions, effective October 1, 2008. The Village elected to implement prospectively, and the
change in accounting principle had no effect on changes in net position/fund equity for prior
periods. Retirees of the Village pay an amount equal to the actual premium for health insurance
charged by the carrier, but there is an implied subsidy in the healthcare insurance premium for
retirees because the premium charged for these retirees is the same as the premium charged for
active employees, who are younger than retirees on average. This implied subsidy constitutes
other postemployment benefits (OPEB) under GASB 45.
Plan Description
The Village provides a single employer defined benefit health care plan to all of its employees.
The plan allows its employees and their beneficiaries, to continue to obtain health and dental
benefits upon retirement. The normal retirement age for police and firefighters is 55; the normal
retirement age for all other Village employees is either age 60 or 65, depending on the option
selected by the employee. The benefits of the plan are in accordance with Florida Statutes,
which are the legal authority for the plan. The plan has no assets and does not issue a separate
financial report.
Funding Policy
The Village does not directly make a contribution to the plan on behalf of retirees. Retirees and
their beneficiaries pay the same group rates as are charged to the Village for active employees by
its healthcare provider. However, the Village's actuaries, in their actuarial valuation, calculate
an offset to the cost of these benefits as an Employer Contribution, based upon an implicit rate
subsidy. This offset equals the total age-adjusted costs paid by the Village or its active
employees for coverage of the retirees and their dependents for the year net of the retiree's own
payments for the year.
Annual OPEB Cost and Net OPER Obligation
The annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution of the employer, an amount actuarially determined in accordance with
GASB Statement No. 45. The annual required contribution represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and to amortize any
unfunded actuarial liabilities over a period not to exceed 30 years.
m
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
Annual OPER Cost and Net OPER Obligation (Continued)
The annual OPEB cost and the net OPEB obligation for the Village for the current year and the
related information is as follows:
Required contribution rates:
$547,229
Employer
Pay-as-you-go
Plan members
N/A
Normal cost
$ 225,452
Interest on normal cost
9,019
Amortization
151,336
Interest on amortization
6,053
Annual required contribution (ARC)
391,860
Interest on net unfunded OPEB obligation
92,272
Adjustment to ARC
(133,403)
Annual OPEB cost
350,729
Contributions made
(69,221)
Increase in net OPEB obligation
281,508
Net OPEB obligation October 1, 2015
2,306,807
Net OPEB obligation September 30, 2016
2.588.315
Trend Information
Three -Year Trend Information
Percentage of
Fiscal Annual Annual Net
Year OPEB OPEB Cost OPEB
End Cost Contributed Oblivation
09/30/14
$547,229
22.6%
$2,040,877
09/30/15
$329,436
19.3%
$2,306,807
09/30/16
$350,729
19.7%
$2,588,315
Funded Status
The funded status of the plan as of most recent actuarial valuation date was as follows:
Actuarial valuation date
10/01/2014
Actuarial accrued liability
$2,464,468
Actuarial value of plan assets
$
Unfunded actuarial accrued liability (UAAL)
$2,464,468
Funded ratio
0.0%
Covered payroll
$8,675,270
UAAL as a percentage of covered payroll
28.4%
::
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 13 — OTHER POST EMPLOYMENT BENEFITS (Continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are comparable with past expectations
and new estimates are made about the future. The schedule of funding progress presented as
required supplementary information following the notes to the financial statements, will present
multi-year trend information that shows whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits. The Village has not
contributed assets to the plan at this time.
Actuarial Methods and Assumptions
Projections of benefits are based on the substantive plan (the plan as understood by the employer
and plan members) and includes the types of benefits in force at the valuation date and the
pattern of sharing benefit costs between the Village and the plan members to that point.
Actuarial calculations reflect a long-term perspective and employ methods and assumptions that
are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value
of assets. Significant methods and assumptions were as follows:
Actuarial valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actual assumptions:
Investment rate of return
Inflation rate
Healthcare cost trend
10/01/2014
Projected Unit Credit
Level dollar, 30 Years, open
30 years
Unfunded
4%
3%
9% for 2016 decreasing to 5% in 2024
NOTE 14 — JOINTLY GOVERNED ORGANIZATION
The Village, through an interlocal agreement with certain other municipalities and Palm Beach
County, created the Seacoast Utility Authority ("Seacoast") which provides water and sewer
service to the citizens of each of the participating municipalities and a portion of Palm Beach
County. Seacoast's governing board consists of one member from each participating entity.
Seacoast is an Independent Authority organized under the laws of the State of Florida, and the
Village has no participating equity ownership in Seacoast. The Village paid $186,438 to
Seacoast during the fiscal year for water and sewer service.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 15 —TRANSFERS
Interfund transfers during the year ended September 30, 2016, are as follows:
Transfer in:
Capital Projects Fund
Nonmajor governmental funds
Transfer Out:
General Fund
$ 1,303,750
200,000
The transfers from the General Fund to the other governmental funds were to move restricted
and unrestricted General Fund revenues to finance various programs that the government must
account for in other funds in accordance with budgetary authorizations, including amounts
provided as subsidies or matching funds for various grant programs.
NOTE 16 — CONTRACTS, COMMITMENTS AND CONTINGENCIES
Operating Lease
The Village entered into a three year operating agreement for 80 golf carts, including GPS
systems and software, for the Country Club in December 2015. For the fiscal year ended
September 30, 2016 expenses under the lease were $110,682. Future minimum rental
commitments are as follows:
Year ended September 30:
Amount
2017 $ 1475576
2018 1475576
2019 36,894
$ 332,046
r •ii ii iii
On September 17, 2014, the Village entered into an agreement with the City of Palm Beach
Gardens whereby the City of Palm Beach Gardens will provide the Village public safety dispatch
services. The term of the agreement was for two years beginning on October 1, 2014, and
extending through September 30, 2016. In 2016 the agreement was renewed for an additional
five years extending through September 30, 2021. The fee for each year under the contract will
be based upon the budget of the North County Dispatch (NCDC) center prorated to each
contracting municipality based on that municipalities cost share. If at the end any contract year a
budget shortfall exists, each contracting municipality shall pay its share of the shortfall.
Conversely, if at the end of any contract year a budget surplus exists, such surplus shall represent
a committed fund balance to be utilized specifically for NCDC budgetary purposes. The
Village's estimated cost for fiscal year ending September 30, 2017 is $378,100.
70
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 16 — CONTRACTS, COMMITMENTS AND CONTINGENCIES (Continued)
Contingencies
The Village is involved in various litigations and claims arising in the course of operations. It is
the opinion of legal counsel that the likelihood of unfavorable outcome and the amounts of
potential losses cannot be reasonably determined for all claims at this time.
NOTE 17 — SUBSEQUENT EVENTS
Commitments
Subsequent to September 30, 2016, the Village approved purchasing a sanitation truck for
$270,000, sanitation collection dumpsters for $83,000, and $153,000 for the construction of
pathways at Anchorage Park.
Country Club
The Village is in the process of the construction of a new Clubhouse. The Scope of Work
includes a new approximately 42,000 gross square foot two-story Clubhouse, a Splash Park and a
remodeled pool deck. On November 10th 2016, the Village entered into an agreement with an
architect for design and construction administration services for the new Country Club
Clubhouse and allocated $1 million for these services. Based on the cost estimates provided by
the Architect, the Village intends to obtain a loan in the amount of $15 million to finance this
proj ect.
On October 1, 2016, the RBI Restaurant, LLC started a month to month lease with the Village
for certain facilities within the Clubhouse to supply food, beverage and general dining and
catering services for $3,000 a month.
On December 8, 2016, the Village approved the Operator Agreement with Carl von Luger FL
LLC d/b/a Carl von Luger Steak & Seafood to conduct the restaurant and banquet operations at
the new Clubhouse upon completion. The term of the lease is five years with the option to renew
for three additional five year terms at the discretion of the Village. The term shall commence on
the actual grand reopening date of the Clubhouse.
71
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2016
NOTE 18 — NEW ACCOUNTING STANDARDS
The Village implemented the following Governmental Accounting Standards Board Statement
during the fiscal year ended September 30, 2016.
In February 2015, the GASB issued Statement No. 72, Fair Value Measurement and Application.
This Statement provides guidance for determining a fair value measurement for financial
reporting purposes and also provides guidance for applying fair value of certain investments and
disclosures related to all fair value measurements.
Below is a brief description and effective date of new accounting standards that could have a
significant impact on the Village.
In June 2015 the GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. This Statement improves accounting and
financial reporting by state and local governments for postemployment benefits other than
pensions. It also improves information provided by state and local governmental employers
about financial support for OPEB that is provided by other entities. This Statement is effective
for the fiscal year ending September 30, 2018.
Management is currently evaluating the impact of the adoption of this statement on the Village's
financial statements.
72
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2016
Schedule of Funding Progress
Other Postemployment Benefits (OPEB)
(1) Projected unit credit
The schedule of funding progress presented above presents multi-year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liability for benefits. The Village has not contributed assets to the plan at this time.
73
Actuarial
UAAL as a
Actuarial
Accrued
Unfunded
Percentage
Actuarial
Value of
Liability
AAL
Funded
Covered
of Covered
Valuation
Assets
(AAL) (1)
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
((b-a)/c)
10/01/08
$
$ 2,741,387
$ 2,741,387
0.0%
$ 6,231,104
44.0%
10/01/11
$
$ 3,432,815
$ 3,432,815
0.0%
$ 7,103,304
48.3%
10/01/14
$
$ 2,464,468
$ 2,464,468
0.0%
$ 8,675,270
28.4%
(1) Projected unit credit
The schedule of funding progress presented above presents multi-year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative
to the actuarial accrued liability for benefits. The Village has not contributed assets to the plan at this time.
73
FIDUCIARY FUNDS
Pension Trust Funds
General Employees Pension Trust Fund
Fire and Police Officers Pension Trust Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2016
General Employees Retirement Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Last Two Fiscal Years
Net pension liability as a percentage of
covered payroll 69.68% 103.00% 125.71%
Changes of Assumptions
For the 2016 fiscal year the discount rate, investment rate of return, inflation rate, salary scale,
and the withdrawal and mortality rates changed.
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
74
2014
2015
2016
Total pension liability:
Service cost
$
374,926
$
317,676
$
357,344
Interest
972,865
1,048,746
1,106,085
Differences between Expected and
Actual Experience
(329,040)
(129,381)
Assumption changes
928,295
Benefit payments, including
refunds of employee contributions
(263,674)
(293,890)
(331,174)
Net change in total pension liability
1,084,117
743,492
1,931,169
Total pension liability - beginning
12,728,438
13,812,555
14,556,047
Total pension liability - ending (a)
$
13,812,555
$
14,556,047
$
16,487,216
Plan fiduciary net position
Contributions - employer
$
562,953
$
464,189
$
458,615
Contributions - Employees
142,609
125,738
126,947
Net investment income
1,072,009
(96,116)
1,161,530
Benefit payments, including
refunds of employee contributions
(263,674)
(293,890)
(331,174)
Administrative expenses
(17,171)
(20,655)
(24,794)
Net change in plan fiduciary net position
1,496,726
179,266
1,391,124
Plan fiduciary net position - beginning
10,433,153
11,929,879
12,109,145
Plan fiduciary net position - ending (b)
$
11,929,879
$
12,109,145
$
13,500,269
Net pension liability (a) - (b)
$
1,882,676
$
2,446,902
$
2,986,947
Plan fiduciary net position as a percentage
of the total pension liability
86.37%
83.19%
81.88%
Covered payroll
$
2,701,771
$
2,375,585
$
2,376,069
Net pension liability as a percentage of
covered payroll 69.68% 103.00% 125.71%
Changes of Assumptions
For the 2016 fiscal year the discount rate, investment rate of return, inflation rate, salary scale,
and the withdrawal and mortality rates changed.
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
74
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2016
Fire and Police Retirement Fund
Schedule of Changes in Net Pension Liability and Related Ratios
Last Two Fiscal Years
Plan fiduciary net position
Contributions - employer
2014
2015
2016
Total pension liability:
Contributions - State
321,230
Service cost
$ 699,244
$ 810,654
$ 833,909
Interest
1,419,425
1,555,518
1,738,069
Changes in excess state money
90,535
67,645
79,505
Changes of benefit terms
1,682
111,884
Differences between Expected and
Benefit payments, including
Actual Experience
483,189
(31,422)
Changes of assumptions
246,146
(653,993)
(1,223,780)
Contributions - Buy Back
(66,748)
65,446
7,609
Benefit payments, including
2,302,025
914,718
refunds of employee contributions
(451,574)
(611,678)
(653,993)
Net change in total pension liability
2,003,776
2,372,456
749,897
Total pension liability - beginning
17,476,586
19,480,362
21,852,818
Total pension liability - ending (a)
$ 19,480,362
$ 21,852,818
$22,602,715
Plan fiduciary net position
Contributions - employer
$
943,634 $
975,733
$ 969,836
Contributions - State
321,230
298,340
310,200
Contributions - Employees
87,010
151,450
190,989
Contributions - Buy Back
65,446
7,609
Net investment income
1,468,473
111,884
1,475,735
Benefit payments, including
refunds of employee contributions
(451,574)
(611,678)
(653,993)
Administrative expenses
(66,748)
(76,457)
(76,967)
Net change in plan fiduciary net position
2,302,025
914,718
2,223,409
Plan fiduciary net position - beginning
14,499,921
16,801,946
17,716,664
Plan fiduciary net position - ending (b)
$
16,801,946 $
17,716,664
$19,940,073
Net pension liability (a) - (b)
$
2,678,416 $
4,136,154
$ 2,662,642
Plan fiduciary net position as a percentage
of the total pension liability
86.25%
81.07%
88.22%
Covered employee payroll
$
4,312,746 $
4,518,020
$ 4,601,075
Net pension liability as a percentage of
covered payroll
62.10%
91.55%
57.87%
Changes of Assumptions
For the 2014 fiscal year the investment rate
of return changed.
For the 2016 fiscal year the salary scale, normal retirement rates, the investment rate of return,
withdrawal and mortality rates, and the actuarial cost method all changed.
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
75
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2016
Last Two Fiscal Years
Schedule of Contributions
Fiscal Year
Actuarially
Fiscal Year
Contribution
Ending
Actual Contribution
Ending
Determined
Actual
Deficiency
Covered
as a Percentage of
September 30
Contribution
Contribution
(Excess)
Payroll
Covered Payroll
General Employees Retirement Fund
2014
$ 562,509
$ 562,953
$ (444)
$ 2,701,771
20.84%
2015
464,189
464,189
2,375,585
19.54%
2016
449,552
458,615
(9,063)
2,376,069
19.30%
Fire and Police Retirement Fund
2014
$ 1,173,930
$ 1,174,329
$ (399)
$ 4,312,746
27.23%
2015
1,205,408
1,206,428
(1,020)
4,518,020
26.70%
2016
1,193,059
1,200,531
(7,472)
4,601,075
26.09%
Schedule of Investment Returns
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
76
Annual money weighted rate of return
Fiscal Year
net of investment expense
Ending
General Fire and Police
September 30
Employees Employees
2014
10.50% 10.00%
2015
-0.39% 0.66%
2016
9.72% 8.25%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
76
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Schedule of Contributions
September 30, 2016
Methods and assumptions used in calculations of determined contributions.
The actuarially determined contribution rates are calculated as of October 1, two years prior to the end of the fiscal year
in which contributions are reported.
Actuarial Cost Method
Amortization Method
Remaining Amortization Period
Asset Valuation Method
Inflation
Salary increases
Cost of living adjustments
Investment Rate of Return
General Employees Police and Fire
Retirement Fund Retirement Fund
Frozen entry age
Level percent of closed
26 years
Five year smoothed market
4.00%
5.50%
3% for those retired before
2/1/82 or who contribute
an extra 2%.
7.50%
Mortality RP -2000 Combined Healthy
Participant Mortality Table
for males and females with
mortality improvement
projected to all future years
after 2000 using Scale AA
77
Aggregate
N/A
N/A
Five year smoothed market
4.00%
6.00%
3.00%
7.90%
- Based on a study of over 650
public safety funds, this table
reflects a 10% margin for future
mortality improvements.
(Disabled lives set forward 5
years
GENERAL FUND
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues, Expenditures, and Changes
in Fund Balance - Budget and Actual
General Fund
For the Year Ended September 30, 2016
Revenues
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment
Miscellaneous
Total revenues
Expenditures
Current
General government
Public safety
Public works
Community development and planning
Leisure services - recreation
Other government
Capital outlay
Total expenditures
Excess of revenues over
expenditures
Other financing sources (uses)
Appropriated fund balance
Transfer out
Total other financing uses
Net change in fund balances
Fund Balances
Beginning of year
End of year
Budgeted Amounts
Original Final
Variance with
Final Budget
Actual Positive
Amounts (Negative)
$ 15,608,340
$ 15,682,340
$ 16,109,173 $
426,833
1,132,700
1,338,700
1,235,782
(102,918)
1,451,122
1,451,122
1,435,796
(15,326)
2,186,257
2,186,257
2,364,013
177,756
75,835
75,835
91,534
15,699
46,360
46,360
103,353
56,993
24,353
24,353
191,250
166,897
20,524,967
20,804,967
21,530,901
725,934
2,898,463
2,906,288
2,876,521
29,767
8,501,998
8,501,998
8,819,747
(317,749)
4,313,560
4,371,403
4,266,749
104,654
1,264,037
1,592,717
1,351,061
241,656
2,443,159
2,443,159
2,448,164
(5,005)
5,541
31,067
(25,526)
19,421,217
19,821,106
19,793,309
27,797
1,103,750
983,861
1,737,592
753,731
519,889
(519,889)
(1,103,750)
(1,503,750)
(1,503,750)
(1,103,750)
(983,861)
(1,503,750)
(519,889)
$
$
233,842 $
233,842
rro
11,410,036
$ 11,643,878
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Budgetary
Required Supplementary Information (RSI)
General Fund
September 30, 2016
Note 1 - Basis of Accounting
Generally accepted accounting principles (GAAP) serve as the budgetary basis of accounting.
Note 2 - Legal Level of Control
The legel level of budgetary control is at the fund level.
W
OTHER SUPPLEMENTARY INFORMATION
GENERAL FUND
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2016
Village Council
Personnel services
Operating expenses
Total Village Council
Village Manager
Personnel services
Operating expenses
Total Village Manager
Procurement and Purchasing
Personnel services
Operating expenses
Total Procurement and Purchasing
Village Finance
Personnel services
Operating expenses
Total Village Finance
Village Attorney
Operating expenses
Village Clerk
Personnel services
Operating expenses
Total Village Clerk
Information Technology
Personnel services
Operating expenses
Total Information Technology
Human Resources
Personnel services
Operating expenses
Total Human Resources
Police
Personnel services
Operating expenses
Total Police
Fire Rescue
Personnel services
Operating expenses
Total Fire Rescue
299,749 299,749 334,014 (34,265) -11.43
30,900 30,900 46,210 (15,310) -49.55
330,649 330,649 380,224 (49,575) -14.99
56,922 (56,922)
2,459 (2,459)
59,381 (59,381)
724,911 724,911 674,917 49,994 6.90
48,550 48,550 39,612 8,938 18.41
773,461 773,461 714,529 58,932 7.62
140,000 140,000 113,433 26,567
18.98
301,351 301,351 316,434 (15,083) -5.01
34,905 34,905 10,200 24,705 70.78
336,256 336,256 326,634 9,622 2.86
311,412 311,412 313,440 (2,028) -0.65
108,300 108,300 96,102 12,198 11.26
419,712 419,712 409,542 10,170 2.42
242,172 242,172 271,838 (29,666) -12.25
104,337 108,162 89,679 18,483 17.09
346,509 350,334 361,517 (11,183) -3.19
4,195,098 4,195,098 4,597,370 (402,272) -9.59
832,681 832,681 719,015 113,666 13.65
5,027,779 5,027,779 5,316,385 (288,606) -5.74
3,075,804 3,075,804 3,197,458 (121,654) -3.96
225,465 225,465 199,360 26,105 11.58
3,301,269 3,301,269 3,396,818 (95,549) -2.89
(Continued)
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 50,466
$ 50,466
$ 50,469
$ (3)
-0.01
82,245
86,245
63,961
22,284
25.84
132,711
136,711
114,430
22,281
16.30
299,749 299,749 334,014 (34,265) -11.43
30,900 30,900 46,210 (15,310) -49.55
330,649 330,649 380,224 (49,575) -14.99
56,922 (56,922)
2,459 (2,459)
59,381 (59,381)
724,911 724,911 674,917 49,994 6.90
48,550 48,550 39,612 8,938 18.41
773,461 773,461 714,529 58,932 7.62
140,000 140,000 113,433 26,567
18.98
301,351 301,351 316,434 (15,083) -5.01
34,905 34,905 10,200 24,705 70.78
336,256 336,256 326,634 9,622 2.86
311,412 311,412 313,440 (2,028) -0.65
108,300 108,300 96,102 12,198 11.26
419,712 419,712 409,542 10,170 2.42
242,172 242,172 271,838 (29,666) -12.25
104,337 108,162 89,679 18,483 17.09
346,509 350,334 361,517 (11,183) -3.19
4,195,098 4,195,098 4,597,370 (402,272) -9.59
832,681 832,681 719,015 113,666 13.65
5,027,779 5,027,779 5,316,385 (288,606) -5.74
3,075,804 3,075,804 3,197,458 (121,654) -3.96
225,465 225,465 199,360 26,105 11.58
3,301,269 3,301,269 3,396,818 (95,549) -2.89
(Continued)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2016
(Continued)
Public Works Administration
Personnel services
Operating expenses
Total Public Works
Sanitation
Personnel services
Operating expenses
Total Sanitation
Facility Services
Personnel services
Operating expenses
Total Facility Services
Street Maintenance
Personnel services
Operating expenses
Total Street Maintenance
Vehicle Maintenance
Personnel services
Operating expenses
Total Vehicle Maintenance
Planning and Engineering
Personnel services
Operating expenses
Total Planning and Engineering
Building
Personnel services
Operating expenses
Total Building
Code Enforcement
Personnel services
Operating expenses
Total Code Enforcement
Leisure Services -Recreation
Personnel services
Operating expenses
Total Leisure Services -Recreation
1,265,484 1,265,484 1,404,230 (138,746) -10.96
163,000 218,000 201,694 16,306 7.48
1,428,484 1,483,484 1,605,924 (122,440) -8.25
313,840 313,840 312,503 1,337 0.43
324,100 326,943 298,471 28,472 8.71
637,940 640,783 610,974 29,809 4.65
488,523 488,523 428,374 60,149 12.31
1,050,231 1,050,231 876,429 173,802 16.55
1,538,754 1,538,754 1,304,803 233,951 15.20
222,816 222,816 229,216 (6,400) -2.87
215,250 215,250 218,762 (3,512) -1.63
438,066 438,066 447,978 (9,912) -2.26
259,699 259,699 246,028 13,671 5.26
27,315 355,995 220,652 135,343 38.02
287,014 615,694 466,680 149,014 24.20
737,324 737,324 636,039 101,285 13.74
103,349 103,349 127,860 (24,511) -23.72
840,673 840,673 763,899 76,774 9.13
116,107 116,107 105,928 10,179 8.77
20,243 20,243 14,554 5,689 28.10
136,350 136,350 120,482 15,868 11.64
628,142 628,142 626,301 1,841 0.29
363,723 363,723 316,687 47,036 12.93
991,865 991,865 942,988 48,877 4.93
(Continued)
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 214,000
$ 214,000
$ 213,724
$ 276
0.13
56,316
56,316
70,616
(14,300)
-25.39
270,316
270,316
284,340
(14,024)
-5.19
1,265,484 1,265,484 1,404,230 (138,746) -10.96
163,000 218,000 201,694 16,306 7.48
1,428,484 1,483,484 1,605,924 (122,440) -8.25
313,840 313,840 312,503 1,337 0.43
324,100 326,943 298,471 28,472 8.71
637,940 640,783 610,974 29,809 4.65
488,523 488,523 428,374 60,149 12.31
1,050,231 1,050,231 876,429 173,802 16.55
1,538,754 1,538,754 1,304,803 233,951 15.20
222,816 222,816 229,216 (6,400) -2.87
215,250 215,250 218,762 (3,512) -1.63
438,066 438,066 447,978 (9,912) -2.26
259,699 259,699 246,028 13,671 5.26
27,315 355,995 220,652 135,343 38.02
287,014 615,694 466,680 149,014 24.20
737,324 737,324 636,039 101,285 13.74
103,349 103,349 127,860 (24,511) -23.72
840,673 840,673 763,899 76,774 9.13
116,107 116,107 105,928 10,179 8.77
20,243 20,243 14,554 5,689 28.10
136,350 136,350 120,482 15,868 11.64
628,142 628,142 626,301 1,841 0.29
363,723 363,723 316,687 47,036 12.93
991,865 991,865 942,988 48,877 4.93
(Continued)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2016
(Continued)
Library
Personnel services
Operating expenses
Total Library
Tennis
Personnel services
Operating expenses
Total Tennis
Pool
Personnel services
Operating expenses
Total Pool
Special Events
Operating expenses
Total Special Events
Other
Operating expenses
Non -Departmental
Operating expenses
Capital Outlay
Police
Planning and Engineering
Total Capital Outlay
Total expenditures
139,012 139,012 139,532 (520) -0.37
214,425 214,425 284,622 (70,197) -32.74
353,437 353,437 424,154 (70,717) -20.01
99,029 99,029 88,865 10,164 10.26
92,689 92,689 123,487 (30,798) -33.23
191,718 191,718 212,352 (20,634) -10.76
101,000 101,000 90,669 10,331 10.23
101,000 101,000 90,669 10,331 10.23
12,730 (12,730)
12,730 (12,730)
592,115 592,115 503,402 88,713 14.98
592,115 592,115 503,402 88,713 14.98
27,405 (27,405)
5,541 3,662 1,879 33.91
5,541 31,067 (25,526) (460.67)
$ 19,421,217 $ 19,821,106 $ 19,793,309 $ 27,797 0.14%
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
$ 641,182
$ 641,182
$ 618,269
$ 22,913
3.57
163,957
163,957
159,705
4,252
2.59
805,139
805,139
777,974
27,165
3.37
139,012 139,012 139,532 (520) -0.37
214,425 214,425 284,622 (70,197) -32.74
353,437 353,437 424,154 (70,717) -20.01
99,029 99,029 88,865 10,164 10.26
92,689 92,689 123,487 (30,798) -33.23
191,718 191,718 212,352 (20,634) -10.76
101,000 101,000 90,669 10,331 10.23
101,000 101,000 90,669 10,331 10.23
12,730 (12,730)
12,730 (12,730)
592,115 592,115 503,402 88,713 14.98
592,115 592,115 503,402 88,713 14.98
27,405 (27,405)
5,541 3,662 1,879 33.91
5,541 31,067 (25,526) (460.67)
$ 19,421,217 $ 19,821,106 $ 19,793,309 $ 27,797 0.14%
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Public Safety Fund
Northlake Boulevard Fund
Recreation Fund
On -Behalf Pension Contributions
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
September 30, 2016
N
Special Revenue Funds
Public
Northlake
On -Behalf
Total Nonmajor
Safety
Boulevard
Pension
Governmental
Fund
Fund
Recreation
Contributions
Funds
Assets
Cash and cash equivalents
$
$ 1,986
$ 549,003
$ 550,989
Due from other governments
19,840
6,107
25,947
Total assets
$
19,840
$ 1,986
$ 549,003
$ 6,107
$ 576,936
Liabilities
Accounts payable
$
$
$
$ 6,107
$ 6,107
Due to other funds
18,320
44,028
62,348
Total liabilities
18,320
44,028
6,107
68,455
Fund balances
Assigned
1,520
1,986
504,975
508,481
Total fund balances
1,520
1,986
504,975
508,481
Total liabilities and fund balances
$
19,840
$ 1,986
$ 549,003
$ 6,107
$ 576,936
N
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended September 30, 2016
Revenues
Intergovernmental
Fines and forfeitures
Total revenues
Public
Safety
$ 19,840 $
19,840
Expenditures
Current
Public safety
Capital outlay 19,840
Total expenditures 19,840
Excess (deficiency) of revenues over
(under) expenditures
Other financing sources (uses)
Revenue Funds
Northlake On -Behalf Total Nonmajor
Boulevard Pension Governmental
$ $ 310,200 $ 330,040
310,200 310,200
10,045 29,885
10,045 310,200 340,085
(10,045)
(10,045)
Transfers in 200,000 200,000
Total other financing sources (uses) 200,000 200,000
Net changes in fund balances 189,955 189,955
Fund balances - Beginning of year 1,520 1,986 315,020 318,526
Fund balances - End of year $ 1,520 $ 1,986 $ 504,975 $ $ 508,481
O
FIDUCIARY FUNDS
Pension Trust Funds
General Employees Pension Trust Fund
Fire and Police Officers Pension Trust Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Net Position - Pension Trust Funds
September 30, 2016
Assets
Cash and cash equivalents
Investments:
Domestic common equity securities
International common equity securities
U.S. Government and agencies
Municipal bonds
Corporate bonds
Fixed income exchange traded funds
Equity exchange traded funds
Fixed income mutual funds
Equity mutual funds
Real estate investment fund
Money market mutual funds
Fire and
Total
General Police
Employee
Employees Officers
Retirement
Pension Pension
Funds
$ 282,653 $
244,145 $
526,798
10, 052,421
10,052,421
1,458,062
1,458,062
1,042,726
1,042,726
206,383
206,383
3,384,990
3,384,990
3,107,648
3,107,648
2,482,676
40,025
2,522,701
1,618,531
1,618,531
6,002,869
6,002,869
2,244,002
2,244,002
1,243,821
1,243,821
Accrued interest and dividends 4,315 46,979 51,294
Accounts receivable 12,554 46,669 59,223
Accounts receivable, broker-dealers 34,848 34,848
Prepaids 1,609 1,609
Total assets 13,511,246 20,046,680 33,557,926
Liabilities
Accounts payable 10,977 62,765 73,742
Accounts payable, broker-dealers 43,842 43,842
Total liabilities 10,977 106,607 117,584
Net Position restricted for pensions $ 13,500,269 $ 19,940,073 $ 33,440,342
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
For the Year Ended September 30, 2016
Additions
Contributions
Employer
Plan members
State on -behalf payments
Total contributions
Investment eamings
Dividends and interest
Net increase in fair value of investments
Total investment earnings
Less: investment expenses
Total investment earnings
Total additions
Deductions
Administration
Benefits
Total deductions
Change in net position
Net position - beginning
Net position - ending
Fire and Total
General Police Employee
Employees Officers Retirement
$ 458,615
$ 969,836
$ 1,428,451
126,947
198,598
325,545
310,200
310,200
585,562
1,478,634
2,064,196
379,460
485,398
864,858
832,260
1,133,591
1,965,851
1,211,720
1,618,989
2,830,709
50,190
143,254
193,444
1,161,530
1,475,735
2,637,265
1,747,092
2,954,369
4,701,461
24,794
76,967
101,761
331,174
653,993
985,167
355,968
730,960
1,086,928
1,391,124
2,223,409
3,614,533
12,109,145
17,716,664
29,825,809
$ 13,500,269
$ 19,940,073
$ 33,440,342
AGENCY FUNDS
Manatee Protection Agency
Northlake Boulevard Task Force
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Agency Net Position
September 30, 2016
Assets
Cash and cash equivalents
Liabilities
Due to others
Manatee
Northlake
Total
Protection
Boulevard
Agency
Agency
Task Force
Funds
$ 299,502 $ 63,675 $ 363,177
$ 299,502 $ 63,675 $ 363,177
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Schedule of Changes in Agency Net Position
For the Year Ended September 30, 2016
Manatee Protection Agency
Assets
Cash and cash equivalents
Liabilities
Due to others
Northlake Boulevard Task Force
Assets
Cash and cash equivalents
Liabilities
Due to others
Total All Agency Funds
Assets
Cash and cash equivalents
Liabilities
Due to others
October 1, 2015 Additions Deductions September 30, 2016
$ 296,604 $ 2,898 $ $ 299,502
$ 296,604 $ 2,898 $ $ 299,502
$ 63,059 $ 616 $ $ 63,675
$ 63,059 $ 616 $ $ 63,675
$ 359,663 $ 3,514 $ $ 363,177
$ 359,663 $ 3,514 $ $ 363,177
PROPRIETARY FUND
(ENTERPRISE FUND)
Country Club Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Departmental Expenses - Budget and Actual
Country Club Fund - Budgetary Basis
For the Year Ended September 30, 2016
Variance with
Final Budget
Original
Final
Positive
Percent
Budget
Budget
Actual
(Negative)
Variance
Revenue
Greens fee/cart rentals/membership fees
$ 2,480,796
$ 2,480,796
$ 2,294,659
$ (186,137)
-7.50
Golf shop revenues
384,700
384,700
326,280
(58,420)
-15.19
Driving range revenues
304,953
304,953
322,208
17,255
5.66
Restaurant revenues
789,015
789,015
761,379
(27,636)
-3.50
Interest revenues
10,000
10,000
9,230
(770)
-7.70
Proceeds from sale of assets
145,000
145,000
145,000
-
0.00
Miscellaneous
14,212
14,212
16,047
1,835
Appropriated net position (1)
264,000
(264,000)
Total revenues
4,128,676
4,392,676
3,874,803
(517,873)
-11.79
Golf Maintenance
Operating expenses
1,150,332
1,150,332
1,124,053
26,279
2.28
Total Golf Maintenance
1,150,332
1,150,332
1,124,053
26,279
2.28
Golf Pro Shop and Range
Personnel services
618,928
618,928
569,974
48,954
7.91
Operating expenses
523,915
523,915
400,674
123,241
23.52
Total Golf Pro Shop and Range
1,142,843
1,142,843
970,648
172,195
15.07
Food and Beverage
Personnel services
525,399
525,399
575,870
(50,471)
-9.61
Operating expenses
400,288
400,288
456,500
(56,212)
-14.04
Total Food and Beverage
925,687
925,687
1,032,370
(106,683)
(11.52)
Administration
Personnel services
64,792
64,792
67,399
(2,607)
-4.02
Operating expenses
29,179
293,179
19,143
274,036
93.47
Capital outlay
227,818
(227,818)
Total Administration
93,971
357,971
314,360
43,611
12.18
Clubhouse and Grounds
Operating expenses
108,453
108,453
77,263
31,190
28.76
Capital outlay
20,000
20,000
19,394
606
Total Clubhouse and Grounds
128,453
128,453
96,657
31,796
24.75
Insurance and General Liability
Operating expenses
51,889
51,889
51,889
0.00
Reserves
Operating
10,000
10,000
5,898
4,102
41.02
Contingency
115,350
115,350
115,350
100.00
Total Reserves
125,350
125,350
5,898
119,452
95.29
Debt service
Debt service (2)
510,151
510,151
404,724
105,427
20.67
Total expenses on the budgetary basis
4,128,676
4,392,676
4,000,599
392,077
8.93
Revenues over expenses
$
$
$ (125,796)
$ (125,796)
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis
4,000,599
Less: capital outlay costs capitalized
(247,212)
Less: debt service
(404,724)
Add: depreciation expense
380,001
Total operating expenses
$ 3,728,664
(1) $264,000 was canired forward from 2015 that was budgeted for design services
relating to the country club.
(2) The payment that is due October 1 is typically
paid in September, but was paid in October.
89
STATISTICAL SECTION
STATISTICAL SECTION
This part of the Village of North Palm Beach's comprehensive annual financial report presents detailed unaudited information
as a context for understanding what the information in the financial statement, note disclosures, and required supplementary
information says about the Village's overall financial health.
Contents Paqe
Financial Trends
These schedules contain trend information to help the reader understand how the Village's financial
performance and well-being have changed over time. These schedules include:
Net Position by Component 90
Changes in Net Position 91
Fund Balances, Governmental Funds 93
Changes in Fund Balances, Governmental Fund 94
Revenue Capacity
These schedules contain information to help the reader assess the Village's most significant local
revenue source, the property tax.
Net Assessed Value and Estimated Actual Value of Taxable Property 96
Property Tax Rates - Direct and Overlapping Governments 97
Principal Property Taxpayers 98
Property Tax Levies and Collections 99
Debt Capacity
These schedules present information to help the reader assess the affordability of the Village's
current levels of outstanding debt and the Village's ability to issue additional debt in the future.
Ratios of Outstanding Debt by Type 100
Direct and Overlapping Governmental Activities Debt 101
Pledged -Revenue Coverage 102
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Village's financial activities take place.
Demographic and Economic Statistics 103
Principal Employers 104
Operating Information
These schedules contain service and infrastructure data to help understand how the information
in the Village's financial report relates to the services the Village provides and the activities it performs.
Full -Time Equivalent Village Government Employees by Function 105
Operating Indicators by Function/Program 106
Capital Asset Statistics by Function/Program 107
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
VILLAGE OF NORTH PALM BEACH
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(A CCR UAL BASIS OFACCOUNTING) Unaudited
(1) The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
90
2012
2013
Fiscal Year
2015(1)
2016
Governmental Activities:
2007
2008
2009
2010
2011
Governmental Activities:
$ 16,109,707
$ 15,431,966
$ 14,966,927
$ 14,711,016
$ 14,102,547
Net investment in capital assets
$ 10,543,788
$ 12,845,093
$ 16,643,241
$ 18,184,508
$ 17,237,355
Restricted
113,269
979,182
251,088
390,081
548,489
Unrestricted
9,281,170
9,836,912
11,016,626
10,568,594
11,775,621
Total governmental activities net position
19,938,227
23,661,187
27,910,955
29,143,183
29,561,465
Business -Type Activities:
2,082,668
1,998,974
1,907,746
1,833,975
1,880,421
Net investment in capital assets
2,195,630
2,492,524
2,364,814
2,295,125
2,200,927
Unrestricted
151,005
202,802
434,212
403,261
385,623
Total business -type activities net position
2,346,635
2,695,326
2,799,026
2,698,386
2,586,550
Primary government:
18,192,375
17,430,940
16,874,673
16,544,991
15,982,968
Net investment in capital assets
12,739,418
15,337,617
19,008,055
20,479,633
19,438,282
Restricted
113,269
979,182
251,088
390,081
548,489
Unrestricted
9,432,175
10,039,714
11,450,838
10,971,855
12,161,244
Total primary government net position
$ 22,284,862
$ 26,356,513
$ 30,709,981
$ 31,841,569
$ 32,148,015
(1) The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
90
2012
2013
2014
2015(1)
2016
Governmental Activities:
Net investment in capital assets
$ 16,109,707
$ 15,431,966
$ 14,966,927
$ 14,711,016
$ 14,102,547
Restricted
658,194
317,190
180,755
177,431
398,519
Unrestricted
11,846,141
11,973,715
11,314,096
6,168,366
6,677,850
Total governmental activities net position
28,614,042
27,722,871
26,461,778
21,056,813
21,178,916
Business -Type Activities:
Net investment in capital assets
2,082,668
1,998,974
1,907,746
1,833,975
1,880,421
Unrestricted
557,954
668,434
514,167
544,523
418,726
Total business -type activities net position
2,640,622
2,667,408
2,421,913
2,378,498
2,299,147
Primary government:
Net investment in capital assets
18,192,375
17,430,940
16,874,673
16,544,991
15,982,968
Restricted
658,194
317,190
180,755
177,431
398,519
Unrestricted
12,404,095
12,642,149
11,828,263
6,712,889
7,096,576
Total primary government net position
$ 31,254,664
$ 30,390,279
$ 28,883,691
$ 23,435,311
$ 23,478,063
(1) The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Managements Discussion and Analysis for State and Local Governments.
90
VILLAGE OF NORTH PALM BEACH
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OFACCOUNTING) Unaudited
Fiscal Year
Program Revenues
2007
2008
2009
2010
2011
Expenses
Governmental activities:
Governmental activities:
General government
$ 2,698,187
$ 1,839,228
$ 2,239,511
$ 2,679,192
$ 2,403,681
Public safety
6,671,490
7,154,578
7,095,043
7,304,233
7,232,748
Public works
3,733,815
3,996,711
4,083,441
4,594,738
4,733,913
Community development and planning
737,165
860,448
826,149
806,536
811,177
Leisure services
2,781,658
3,244,045
3,174,623
2,830,292
2,749,065
Interest on long-term debt
204,666
120,549
26,702
4,384
400,662
Total governmental activities expenses
16,826,981
17,215,559
17,445,469
18,219,375
17,930,584
Business -type activities:
734,718
861,394
Leisure services
496,679
Country club
3,570,683
3,268,562
3,308,535
3,398,206
3,691,528
Total business -type activities
3,570,683
3,268,562
3,308,535
3,398,206
3,691,528
Total primary government expenses
$ 20,397,664
$ 20,484,121
$ 20,754,004
$ 21,617,581
$ 21,622,112
Program Revenues
Governmental activities:
Charges for services:
General government
$
122,455
$
123,334
$
122,569
$ 126,968
$ 130,886
Public safety
345,731
383,325
378,591
465,263
420,653
Public works
217,975
288,994
394,082
411,722
400,662
Community development and planning
938,188
888,015
699,130
734,718
861,394
Leisure services
496,679
595,558
912,862
1,063,748
1,043,459
Other government
Operating grants and contributions
170,389
88,224
105,080
96,670
126,568
Capital grants and contributions
1,454,526
1,602,465
2,017,158
75,845
5,169
Total governmental activities program revenues
3,745,943
3,969,915
4,629,472
2,974,934
2,988,791
Business -type activities:
Charges for services:
Country club
3,463,524
3,616,509
3,404,859
3,227,580
3,571,199
Operating grants and contributions
13,609
Capital grants and contributions
Total business -type activities program revenues
3,463,524
3,630,118
3,404,859
3,227,580
3,571,199
Total primary government program revenues
$
7,209,467
$
7,600,033
$
8,034,331
$ 6,202,514
$ 6,559,990
Net (Expense)/Revenue
Governmental activities
$
(13,081,041)
$
(13,245,644)
$ (12,815,997)
$ (15,244,441)
$ (14,941,793)
Business -type activities
(107,159)
361,556
96,324
(170,626)
(120,329)
Total primary government net expense
$
(13,188,200)
$
(12,884,088)
$ (12,719,673)
$ (15,415,067)
$ (15,062,122)
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes
$
12,076,184
$
11,915,355
$
11,917,359
$ 11,053,128
$ 10,441,869
Local option gas taxes
292,332
278,649
267,557
266,077
259,794
Utility service taxes
2,001,443
2,018,071
2,239,002
2,261,375
2,198,148
Franchise taxes
1,207,552
1,212,562
1,256,831
1,204,328
1,191,155
Sales and use taxes
1,339,893
1,227,341
1,116,107
1,114,945
1,140,744
Unrestricted grants and contributions
Investment earnings
650,022
194,652
(1,346)
280,217
97,743
Miscellaneous
8,836
55,719
263,459
213,425
30,622
Contributions for Support Our Troops
15,502
16,959
6,796
Gain on disposl of equipment
Transfers
5,111
49,296
Total governmental activities
17,596,875
16,968,604
17,065,765
16,393,495
15,360,075
Business -type activities:
Investment income
43,917
36,431
7,376
14,686
8,493
Miscellaneous
55,300
Transfers
(5,111)
(49,296)
Total business -type activities
38,806
(12,865)
7,376
69,986
8,493
Total primary government
$
17,635,681
$
16,955,739
$
17,073,141
$ 16,463,481
$ 15,368,568
Change in net position
Governmental activities
$
4,515,834
$
3,722,960
$
4,249,768
$ 1,149,054
$ 418,282
Business -type activities
(68,353)
348,691
103,700
(100,640)
(111,836)
Total primary government
$
4,447,481
$
4,071,651
$
4,353,468
$ 1,048,414
$ 306,446
Basic Financial Statements and Managements Discussion andAnalysis for State andLocal Governments.
91
2012 2013 2014 2015 2016
$ 2,520,815
$
2,489,488
$ 2,696,298
$ 3,028,716
$
2,985,185
7,892,561
8,282,062
9,259,442
9,311,441
9,308,778
4,652,620
4,482,973
4,485,246
4,963,704
5,106,651
884,773
966,245
1,046,299
1,308,924
1,382,121
2,873,496
2,974,290
3,114,213
2,973,687
2,904,715
18,824,265
19,195,058
20,601,498
21,586,472
21,687,450
3,536,139
3,629,120
3,902,131
3,842,660
3,845,547
3,536,139
3,629,120
3,902,131
3,842,660
3,845,547
$ 22,360,404
$
22,824,178
$ 24,503,629
$ 25,429,132
$
25,532,997
$ 135,372
$
107,976
$ 110,694
$ 131,445
$
128,459
440,568
522,121
592,644
537,064
628,529
386,974
403,447
402,814
514,354
565,011
816,673
993,059
1,621,471
1,163,875
1,213,032
1,018,883
1,087,182
1,096,021
1,006,382
994,918
149,573
91,901
90,520
380,567
365,823
5,686
233,949
16,098
26,548
229,161
2,953,729
3,439,635
3,930,262
3,760,235
4,124,933
3,582,760
3,577,446
3,645,706
3,788,852
3,720,573
3,582,760
3,645,706
3,577,446
3,788,852
3,720,573
$ 6,536,489
$
7,017,081
$ 7,575,968
$ 7,549,087
$
7,845,506
$ (15,870,536)
$
(15,755,423)
$ (16,671,236)
$ (17,826,237)
$
(17,562,517)
46,621
(51,674)
(256,425)
(53,808)
(124,974)
$ (15,823,915)
$ (15,807,097)
$ (16,927,661)
$ (17,880,045)
$ (17,687,491)
$ 10,011,748
$
9,981,391
$ 10,154,695
$ 11,364,888
$
12,253,917
263,369
261,852
266,147
282,549
288,150
2,164,920
2,197,760
2,277,366
2,267,118
2,303,294
1,178,5 98
1,160,780
1,232,669
1,253,139
1,263,812
1,138,097
1,187,221
1,260,617
1,3 32,209
1,3 63,954
90,968
37,029
16,653
108,794
103,353
75,413
38,219
146,360
57,137
60,026
55,636
30,457
48,114
14,923,113
14,864,252
15,410,143
16,696,291
17,684,620
7,451
8,555
10,930
10,393
9,230
69,905
36,393
7,451
78,460
10,930
10,393
45,623
$ 14,930,564
$
14,942,712
$ 15,421,073
$ 16,706,684
$
17,730,243
$ (947,423)
$
(891,171)
$ (1,261,093)
$ (1,129,946)
$
122,103
54,072
26,786
(245,495)
(43,415)
(79,351)
$ (893,351)
$ (864,385)
$ (1,506,588)$
(1,173,361)
$
42,752
92
VILLAGE OF NORTH PALM BEACH
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
The Village implemented GASB 54, Fund Balance Reporting and Government Fund Definitions, in 2011 and restated the 2010 amounts.
93
2007
2008
2009
2010
2011
Pre GASB 54
General Fund
Reserved
$
945,891
$
775,339
$
563,115
$
Unreserved
8,179,659
8,265,513
10,058,216
Total general fund
Post GASB 54
General Fund
Nonspendable
Restricted
167,108
276,924
Committed
338,457
548,489
Assigned
Unassigned
104,245
186,594
10,443,099
10,688,660
Total general fund
$
9,125,550
$
9,040,852
$ 10,621,331
$ 11,052,909
$
11,700,667
Pre GASB 54
All other Governmental Funds
Reserved
$
$
239,979
$
$
$
Unreserved, reported in:
Special revenue funds
224,937
594,399
(152,861)
Capital projects funds
673,232
713,373
825,778
Total all other governmental funds
Post GASB 54
All other Governmental Funds
Restricted
Assigned
Special revenue funds
47,379
47,107
Capital projects funds
844,742
1,491,574
Total all other governmental funds
$
898,169
$
1,547,751
$
672,917
$
892,121
$
1,538,681
Post GASB 54
2012
2013
2014
2015
2016
General Fund
Nonspendable
$
166,839
$
293,674
$
244,438
$
155,594
$
358,606
Restricted
658,194
317,190
135,255
131,931
353,019
Committed
442,833
Assigned
127,574
200,016
216,808
319,888
208,204
Unassigned
11,244,977
11,451,668
12,391,362
10,802,623
10,724,049
Total general fund
$ 12,197,584
$ 12,705,381
$ 12,987,863
$ 11,410,036
$
11,643,878
All other Governmental Funds
Restricted
$
$
$
45,500
$
45,500
$
45,500
Assigned
Special revenue funds
47,652
47,652
325,152
318,526
508,481
Capital projects funds
2,129,831
1,799,617
841,850
1,448,620
1,604,073
Total all other governmental funds
$
2,177,483
$
1,847,269
$
1,212,502
$
1,812,646
$
2,158,054
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
The Village implemented GASB 54, Fund Balance Reporting and Government Fund Definitions, in 2011 and restated the 2010 amounts.
93
THIS PAGE INTENTIONALLY LEFT BLANK
VILLAGE OF NORTH PALM BEACH
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCR UAL BASIS OF ACCOUNTING) Unaudited
Revenues:
Taxes
Licenses and Permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
Total revenues
Expenditures:
General government
Public safety
Public works
Community development and planning
Leisure services - recreation
Other government
Capital outlay
Debt service
Principal payments
Interest paid on debt
Total expenditures
Excess of revenues over (under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Capital lease
Proceeds from debt issuance
Miscellaneous
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
Fiscal Year
2007
2008
2009
2010
2011
$ 15,577,511
$ 15,424,638
$ 15,680,749
$ 14,784,906
$ 14,090,966
880,266
1,047,144
880,016
910,997
959,098
2,750,021
2,459,211
3,315,908
1,768,388
1,557,377
1,082, 569
1,268, 774
1,684, 718
1,944,245
1,934,424
132,158
235,965
145,340
142,048
164,366
650,022
194,652
(1,345)
280,218
97,743
194,716
137,447
300,455
278,062
59,462
21,267,263
20,767,831
22,005,841
20,108,864
18,863,436
2,304,654
2,246,461
1,970,257
2,496,342
2,402,241
6,609,801
7,056,833
6,835,730
7,021,231
7,053,282
3,558,264
3,725,450
3,432,556
3,887,034
4,044,642
735,155
840,366
784,486
774,121
790,937
2,430,403
2,876,840
2,898,252
2,361,388
2,295,959
2,737,805
2,597,065
3,939,455
663,582
682,057
789,048
716,206
1,395,735
2,250,000
207,088
143,726
43,725
4,384
19,372,218
20,202,947
21,300,196
19,458,082
17,269,118
1,895,045
564,884
705,645
650,782
1,594,318
593,884
1,254,952
454,111
163,490
1,334,934
(593,884)
(1,254,952)
(454,111)
(163,490)
(1,334,934)
$ 1,895,045 $ 564,884 $ 705,645 $ 650,782 $ 1,594,318
6.41% 4.91% 8.07% 11.99%
94
2012
2013
2014
2015
2016
$ 13,618,635
$ 13,601,783
$ 13,930,877
$ 15,167,694
$ 16,109,173
810,390
803,337
1,344,653
947,158
1,235,782
1,591,678
1,817,603
1,688,608
1,758,246
1,765,836
1,966,179
2,141,437
2,320,305
2,231,673
2,364,013
140,610
131,524
117,869
128,235
91,534
90,968
37,029
16,653
108,794
103,353
130,293
207,076
258,086
122,107
191,250
18,348,753
18,739,789
19,677,051
20,463,907
21,860,941
2,328,568
2,346,281
2,541,546
2,904,553
2,876,521
7,583,018
7,947,221
8,947,627
8,966,077
9,129,947
3,886,698
3,733,977
3,773,689
4,255,636
4,266,749
844,748
933,117
1,004,642
1,270,399
1,351,061
2,374,748
2,491,559
2,644,598
2,514,495
2,448,164
495,254
1,110,051
1,117,234
1,530,430
1,209,249
17,513,034
18,562,206
20,029,336
21,441,590
21,281,691
835,719
177,583
(352,285)
(977,683)
579,250
500,000
265,000
323,000
2,091,246
1,503,750
(500,000)
(265,000)
(323,000)
(2,091,246)
(1,503,750)
$ 835,719 $ 177,583 $ (352,285) $ (977,683) $ 579,250
95
VILLAGE OF NORTH PALM BEACH
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Total Net Market -
Assessed Value
Total Direct
Tax Rate
Real Property
6.3000
2,017,239,341
Fiscal Year
1,847,439,149
6.6977
1,656,950,264
6.9000
Ended
Tax Roll
1,488,137,908
Commercial
Personal
Sept 30,
Year
Residential Property
Property
Property
2007
2006
$ 1,700,678,282 $
235,776,768
$ 45,084,335
2008
2007
1,744,202,888
229,300,592
43,735,861
2009
2008
1,575,367,916
230,599,951
41,471,282
2010
2009
1,394,954,867
221,443,121
40,552,276
2011
2010
1,295,097,223
210,844,220
38,261,607
2012
2011
1,265,549,795
189,284,601
33,303,512
2013
2012
1,254,302,880
195,770,816
30,033,151
2014
2013
1,287,481,785
203,512,929
33,792,851
2015
2014
1,355,969,888
214,484,701
34,077,944
2016
2015
1,453,735,176
232,020,936
36,939,006
Total Net Market -
Assessed Value
Total Direct
Tax Rate
$ 1,981,539,385
6.3000
2,017,239,341
6.1000
1,847,439,149
6.6977
1,656,950,264
6.9000
1,544,203,050
6.9723
1,488,137,908
6.9723
1,480,106,847
6.9723
1,524,787,565
6.8731
1,604,532,533
7.3300
1,722,695,118
7.3300
Note: Assessed values are established by the Palm Beach Property Appraiser's office as of January 1, each year.
Assessments were increased to 100% of market value as of 1980.
Property in the Village is reassessed each year. Property is assessed at actual value, therefore the assessed
values are equal to actual value. Tax rates are per $1,000 of assessed value.
Source: Palm Beach County Property Appraiser
96
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Source: North Palm Beach: Notice of Ad Valorem Taxes and Non -Ad Valorem Assessments
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
97
Overlapping Rates (1)
Palm Beach
Total
County
Palm
Direct and
Fiscal
Tax Roll
Village of
School
Beach
Special
Overlapping
Year
Year
N. Palm Beach
District
County
Districts
Rates
2007
2006
6.3000
7.8700
4.4800
2.3250
20.9750
2008
2007
6.1000
7.3560
3.9813
2.1308
19.5681
2009
2008
6.6977
7.2500
3.9660
2.2570
20.1707
2010
2009
6.9000
7.9830
4.5614
2.4934
21.9378
2011
2010
6.9723
8.1540
4.9960
2.5549
22.6772
2012
2011
6.9723
8.1800
4.9925
2.3433
22.4881
2013
2012
6.9723
7.7780
4.9902
2.3154
22.0559
2014
2013
6.8731
7.5860
4.9852
2.2280
21.6723
2015
2014
7.3300
7.5940
4.9729
2.1732
22.0701
2016
2015
7.3300
7.0700
4.9142
1.9453
21.2595
Note: All millage rates are based on $1 for every $1,000 of assessed value.
Source: North Palm Beach: Notice of Ad Valorem Taxes and Non -Ad Valorem Assessments
(1) Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
97
VILLAGE OF NORTH PALM BEACH
PRINCIPAL PROPERTY TAXPAYERS
2016 & 2007 Presented
Source: Palm Beach Country Appraiser
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
98
2016
2007
Percentage
Percentage
of Total
of Total
Village Net
Village Net
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayers
Value
Rank
Value
Value
Rank
Value
Olen Residential Realty
26,726,613
1
1.55%
16,800,000
3
0.85%
Sanctuary Bay Trust Corporation
21,147,513
2
1.23%
13,200,300
5
0.67%
Florida Power & Light
20,281,649
3
1.18%
JB Shoppes LLLP
15,236,084
4
CF02 Palm Beach III LP
14,273,652
4
0.72%
New Country Motor Cars
13,809,719
5
0.80%
Greater Fla Inv CO
11,080,697
6
0.56%
Domani Devolopment, LLC
13,360,002
6
0.78%
19,818,175
1
1.00%
Old Port Cove Equities, Inc
14,300,000
7
0.83%
Village Shoppes at US 1, LLC
9,325,955
7
0.47%
Crystal Tree Property Owners
12,000,000
8
0.70%
17,681,121
2
0.89%
Riverside National Bank of Florida
8,058,994
8
0.41%
Chouest, Gary
10,447,665
9
0.61%
Old Port Cove Holdings, Inc
9,990,711
10
0.58%
7,702,923
9
0.39%
North Lake Storage, LLC
5,655,868
10
0.29%
Total
$ 157,299,956
8.26%
$ 123,597,685
6.25%
Source: Palm Beach Country Appraiser
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
98
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN CALENDAR YEARS
Fiscal Year
Collections in
Subsequent
Years
Total Taxes
Ending
Tax Roll
Levied for
Sept 30,
Year
Fiscal Year
92.98%
349,642
2007
2006
$ 12,624,307
2008
2007
12,360,135
2009
2008
12,401,519
2010
2009
11,564,281
2011
2010
10,793,319
2012
2011
10,424,715
2013
2012
10,358,172
2014
2013
10,503,598
2015
2014
11,761,226
2016
2015
12,627,355
Collected within
the Fiscal Year
of the Levy
Percent
Amount of Levy
Collections in
Subsequent
Years
$ 11,802,457
93.49%
228,352
11,546,732
93.42%
333,756
11,530,384
92.98%
349,642
10,683,829
92.39%
284,004
10,097,289
93.55%
298,514
9,992,145
95.85%
15,616
9,948,550
96.05%
36,366
10,097,763
96.14%
57,493
11,350,738
96.51%
14,777
12,197,736
96.60%
57,133
Source: Palm Beach Country Property Appraiser
* Information available from the PBC Tax Collector is presented
99
Total Collections
to Date
Amount
Percent
of Levy
$ 12,030,809
95.30%
11,880,488
96.12%
11,880,026
95.79%
10,967,833
94.84%
10,395,803
96.32%
10,007,761
96.00%
9,984,916
96.40%
10,155,256
96.68%
11,365,515
96.64%
12,254,869
97.05%
VILLAGE OF NORTH PALM BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Note: Details regarding the Village's outstanding debt may be found in the notes to the
financial statements.
* Information was not available, the prior year info was used.
(1) See the Schedule of Demographic and Economic Statistics on page 103 for personal inome and population data.
100
Business -type
Governmental Activities
Activities
Fiscal Year
Percent of
Ended
Loans
Capital
Loans
Capital
Median Personal
Per
Sept 30,
Payable
Leases
Payable
Leases
Total
Income (1)
Capita
2007
4,280,842
81,100
5,026,895
9,388,837
1.12%
715.61
2008
3,605,639
40,097
4,662,833
192,892
8,501,461
1.05%
692.64
2009
2,250,000
-
4,383,033
97,049
6,730,082
0.88%
583.15
2010
-
4,090,284
235,176
4,325,460
0.58%
371.64
2011
3,844,928
173,084
4,018,012 *
0.54% *
345.22
2012
3,608,294
106,933
3,715,227
0.49%
303.51
2013
3,357,875
396,055
3,753,930
0.51%
305.37
2014
3,096,925
274,471
3,371,396
0.42%
266.62
2015
2,824,987
147,767
2,972,754
0.38%
234.94
2016
2,684,913
-
2,684,913
0.34%
209.48
Note: Details regarding the Village's outstanding debt may be found in the notes to the
financial statements.
* Information was not available, the prior year info was used.
(1) See the Schedule of Demographic and Economic Statistics on page 103 for personal inome and population data.
100
VILLAGE OF NORTH PALM BEACH
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2016
Unaudited
Subtotal, overlapping debt 11,811,323
Village of North Palm Beach Direct Debt 0.00
Total direct and overlapping debt $ 11,811,323
Sources: Palm Beach County Tax Appraiser's Office
Palm Beach County School Board
Palm Beach County Clerk & Comptroller
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the Village. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and businesses of the Village of North Palm Beach. This
process recognizes that, when considering the Village's ability to issue and repay long-term debt, the
entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt,
of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Value that is within the Village's boundaries and dividing it by the
County's and School Board's total taxable assessed value. This approach was also used for the other
debt.
101
Percentage
Amount
Net
Applicable to
Applicable to
Debt
the Village of
the Village of
Government Unit
Outstanding
North Palm Beach (1)
North Palm Beach
Debt repaid with property taxes:
Palm Beach County
$ 131,774,000
1.13%
$ 1,489,046
Palm Beach County School Board
13,713,000
1.04%
$ 142,615
Other debt:
Palm Beach County
900,855,000
1.13%
10,179,662
Palm Beach County School Board
1.04%
Subtotal, overlapping debt 11,811,323
Village of North Palm Beach Direct Debt 0.00
Total direct and overlapping debt $ 11,811,323
Sources: Palm Beach County Tax Appraiser's Office
Palm Beach County School Board
Palm Beach County Clerk & Comptroller
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries
of the Village. This schedule estimates the portion of the outstanding debt of those overlapping
governments that is borne by the residents and businesses of the Village of North Palm Beach. This
process recognizes that, when considering the Village's ability to issue and repay long-term debt, the
entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt,
of each overlapping government.
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using
taxable assessed property values. Value that is within the Village's boundaries and dividing it by the
County's and School Board's total taxable assessed value. This approach was also used for the other
debt.
101
VILLAGE OF NORTH PALM BEACH
Pledged - Revenue Coverage
Country Club Bonds
Last Ten Fiscal Years
Unaudited
Fiscal Gross Operating
Year Revenues (1) Expenses (2)
Net Revenue
Required
Debt
Service
Coverage (3)
2007
$ 3,507,441
$ 2,991,621
$ 515,820
$ 392,505
1.31
2008
3,652,940
2,558,591
1,094,349
394,900
2.77
2009
3,412,235
2,587,171
825,064
394,900
2.09
2010
3,242,266
2,728,470
513,796
394,900
1.30
2011
3,579,692
3,049,301
530,391
394,900
1.34
2012
3,590,211
2,932,743
657,468
394,900
1.66
2013
3,586,001
2,986,080
599,921
394,900
1.52
2014
3,656,636
3,248,284
408,352
394,900
1.03
2015
3,799,245
3,226,907
572,338
394,900
1.45
2016
3,766,196
3,333,395
432,801
394,900
1.10
(1) Gross revenue includes all revenues derived by the Village from the ownership and operation
of the Country Club.
(2) Operating expenses excludes non-cash expenses
(3) Coverage should be not less than 1.00.
102
Calendar
Year
2007 (estimate)
2008 (estimate)
2009 (estimate)
2010 (estimate)
2011 (estimate)
2012 (estimate)
2013 (estimate)
2014 (estimate)
2015 (estimate)
2016 (estimate)
Sources:
VILLAGE OF NORTH PALM BEACH
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Unaudited
Per
Palm Beach
Median
Capita
County
Personal
Personal
Unemployment
Population (1)
Income (1)
Income (1)
Rate (2)
13,120
$ 63,984 $
42,224
4.1
12,274
65,815
45,563
6.3
11,541
66,401
49,350
10.8
11,639
64,156
49,130
12.0
*
*
*
10.7
12,241
***62,121
****49,117
**5.29
12,293
***59,778
****42,830
**4.66
12,645
***63,349
****43,120
**3.92
12,653
***61,057
****43,120
**3.15
12,817
***61,653
****45,110
**2.10
Business Development Board
US Census Bureau
* 2011 Demographic data is not available due to Agency Software upgrade
that is not complete
** Village of North Palm Beach Unemployment Rate for 2012-2016 presented
*** North Palm Beach Median Personal Income for 2012 - 2016 presented
**** West Palm Beach/Ft Lauderdale/Miami Mean Income data presented
Note: (1) All information available at the current time is presented.
(2) North Palm Beach is not large enough to track unemployment rates.
Palm Beach County rates are presented.
103
VILLAGE OF NORTH PALM BEACH
PRINCIPAL EMPLOYERS...
Source: Business Development Board of Palm Beach County, floridajobs.org
* Employer: Palm Beach County
Information is not available for the Village of North Palm Beach.
** Percentage of total employment is calculated using Palm Beach County's
available labor force in each of the respective years presented.
*** FY 2016 data is not available - FY 2006 & 2015 data presented
Notes:
(1) Formerly Columbia Palm Beach Health Care Systems, Inc
(2) Formerly Boca Raton Community Hospital
104
2015**
2006**
Percentage
Percentage
of Total
of Total
Employer
Employees
Employment
Employees
Employment
Palm Beach Country School Board
21,656
3.12%
21,616
3.49%
State Government
7,470
1.08%
7,858
1.27%
Federal Government
6,658
0.96%
6,180
1.00%
Palm Beach County Government
5,930
0.85%
6,594
1.06%
Tenet Health Care Corp
4,595
0.66%
4,794
0.77%
NextEra Energy (Florida Power & Light)
4,005
0.58%
2,850
0.46%
Hospital Corporation of America (HCA) (1)
3,476
0.50%
5,200
0.84%
Veterans Health Administration
2,700
0.39%
1,350
0.22%
Florida Alantic University
2,529
0.36%
2,825
0.46%
Jupiter Medical Center
2,195
0.32%
1,400
0.23%
Bethesda Memorial Hospital
2,150
0.31%
1,604
0.26%
Boca Raton Regional Hospital (2)
2,500
0.36%
1,700
0.27%
Office Depot
2,000
0.29%
1,750
0.28%
The Breakers Hotel
2,000
0.29%
1,800
0.29%
Florida Crystals (Headquarters)
1,900
0.27%
2,000
0.32%
Boca Raton Resort & Club
1,292
0.19%
2,200
0.36%
U.S. Sugar Corp
900
0.13%
2,100
0.34%
73,956
10.66%
73,821
11.92%
Source: Business Development Board of Palm Beach County, floridajobs.org
* Employer: Palm Beach County
Information is not available for the Village of North Palm Beach.
** Percentage of total employment is calculated using Palm Beach County's
available labor force in each of the respective years presented.
*** FY 2016 data is not available - FY 2006 & 2015 data presented
Notes:
(1) Formerly Columbia Palm Beach Health Care Systems, Inc
(2) Formerly Boca Raton Community Hospital
104
VILLAGE OF NORTH PALM BEACH
Full -Time Equivalent Village Government Employees by Function
LAST TEN FISCAL YEARS (-)
105
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Number of Employees:
General Government
Village Manager
Full -Time
2
2
2
2
2
2
2
2
2
2
Part -Time
0
0
0
0
0
0
0
0
0
0
Information Technology
Full -Time
2
2
2
2
2
3
3
3
3
3
Part -Time
0
0
1
1
1
0
0
0
0
0
Human Resources
Full -Time
2
2
2
2
2
2
2
2
2
2
Part -Time
0
0
0
0
0
0
0
0
1
2
Village Clerk - Full -Time
3
3
3
3
3
3
3
3
3
3
Finance
Full-time
5
5
5
5
5
5
5
5
7
7
Part -Time
0
1
1
1
1
1
1
1
0
0
Public Works
Full-time
47
48
38
37
37
37
37
37
35
34
Part -Time
0
0
0
0
0
0
0
0
0
0
Police & Fire
Full-time
68
68
67
67
67
0
0
0
0
0
Part -Time
13
12
11
12
12
0
0
0
0
0
Police
Full-time
0
0
0
0
0
43
43
43
36
36
Part -Time
0
0
0
0
0
12
13
13
13
13
Fire Rescue
Full-time
0
0
0
0
0
24
24
24
24
24
Part -Time
0
0
0
0
0
0
0
0
0
0
Community Development and Planning
Full-time
9
10
9
9
9
8
8
10
11
12
Part -Time
1
1
2
2
2
2
2
1
0
0
Leisure Services
Library
Full-time
7
7
6
6
6
6
6
6
7
7
Part -Time
8
8
10
10
10
10
10
10
9
9
Recreation
Full-time
15
17
9
7
6
6
6
6
6
6
Part -Time
39
42
42
42
43
43
43
43
43
43
Other Government - Country Club
Full-time
19
18
5
5
7
5
6
8
8
8
Part -Time
25
22
21
21
64
56
54
65
65
65
Total Number of Employees Budgeted FY Ending
265
268
236
234
279
268
268
282
275
276
* Variance exists due to the employment of seasonal and part-time employees.
Source: Village of North Palm Beach Budget Report
105
VILLAGE OF NORTH PALM BEACH
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
FUNCTION/PROGRAM
PUBLIC WORKS
Sanitation (Tons of Refuse Collected)
No. of collection units for solid waste (residential)
Number of vehicles maintained
Number of repair overlays completed (miles)
POLICE
Number of arrests by police officers
Number of traffic citations issued
FIRE RESCUE
EMS average response times (minutes)
Number of EMS calls
COMMUNITY DEVELOPMENT & PLANNING
Building Department - Number of Permits
Number of code enforcement violations
Number of code violations brought to board/magistrate
(Calendar Yr End)
RECREATION
Number of community events presented
Number of registrants in athletic programs
LIBRARY
Library - Number of Volumes
OTHER GOVERNMENT
Country Club
Number of Golf Members
Number of Tennis Members
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
12,085
11,974
10,667
10,165
9,962
10,065
10,720
10,720
11,167
12,556
7,152
7,163
7,214
7,070
7,071
7,076
7,471
7,616
7,618
7,614
104
104
110
110
98
98
111
98
98
92
2
3
2.5
2.71
-
-
-
-
-
-
545
549
448
402
260
211
216
238
293
247
4,269
5,520
6,305
4,951
2,564
2,566
1,254
2,799
3,407
2,494
4.73
5.17
5.01
5.12
5.19
5.26
5.11
5.10
5.05
5.26
1,034
1,114
1,214
1,146
1,179
1,326
1,296
1,110
1,499
1,601
1,875
1,619
1,548
1,744
1,616
1,835
2,480
2,103
3,920
4,242
1,617
729
613
391
575
817
790
887
769
680
126
115
73
38
72
100
62
28
56
42
24
23
28
28
38
49
37
53
57
48
1,600
1,400
1,125
1,005
1,260
1,311
2,074
1,439
1,389
1,174
42,372
33,122
35,681
39,277
40,658
43,340
44,966
46,546
47,339
*57,935
579
389
297
354
298
283
262
250
255
265
171
171
180
184
173
162
190
194
193
183
Source: Village of North Palm Beach
U.S. Census Bureau
Property Appraiser
* Beginning in FY 2016 Number of Volumes includes not only printed items, but media items as well.
106
VILLAGE OF NORTH PALM BEACH
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Source: Village of North Palm Beach
* Preliminary 2016 information is presented
** A Centerline Miles Study was completed during FY 2016 and the number ofNPB Village centerline miles from the report is presented.
107
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016*
Function/Program:
General Government
No. of General Government Buildings
11
11
23
23
23
23
23
23
23
23
Public Works
Square Miles
5.18
5.18
5.18
5.18
5.18
5.18
5.18
5.18
5.18
5.18
Miles of Streets
36.00
36.00
36.00
36.00
36.00
36.00
36.00
36.00
36.00
32.30**
Number of Street Lights (within eorp surroundings)
425
513
513
513
513
513
513
513
513
513
Public Safety
Fire:
Number of Stations
1
1
1
1
1
1
1
1
1
1
Number of Firemen/Paramedics/EMTs
0
0
0
0
0
0
0
0
0
0
Number of Fire Captains
23
23
23
23
23
22
22
22
22
23
Police/EMS Protection:
Number of Stations
1
1
1
1
1
1
1
1
1
1
Number of Policemen & Officers
32
32
31
31
31
28
28
28
28
28
Number of Police Captains
0
0
0
0
0
2
2
2
2.5
2.5
Leisure Services
Recreation
Number of Parks
4
4
4
4
4
4
4
4
4
4
Public Tennis Courts
2
2
2
2
2
2
2
2
2
2
Swimming Pool
1
1
1
1
1
1
1
1
1
1
Number of Marinas
1
1
1
1
1
1
1
1
1
1
Library
Number of Libraries
1
1
1
1
1
1
1
1
1
1
Number of Volumes (Printed items only)
42,372
33,122
35,681
39,277
40,658
43,340
44,966
46,546
47,339
48,913
Other Government
Country Club
Golf Course
1
1
1
1
1
1
1
1
1
1
Driving Range
1
1
1
1
1
1
1
1
1
1
Tennis Courts
10
10
10
10
10
10
10
10
10
10
Restaurant
0
0
0
1
1
1
1
1
1
1
Snack Bar
0
0
0
1
1
1
1
1
1
1
Source: Village of North Palm Beach
* Preliminary 2016 information is presented
** A Centerline Miles Study was completed during FY 2016 and the number ofNPB Village centerline miles from the report is presented.
107
OTHER REPORTS
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
EVERETT S. NOWLEN (193&1984). CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
WEST PALM BEACH OFFICE
JANET R. SARICEVICH,CPA
N ORT HBRI DOF CENTRE
TERRY L. MORTON, JR., CPA
5151_ FLAG LER 1)RIVE, SLI ITE 170D
N. RONALD BENN ETT. CVA, ABV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
POST OFFICE: E30X 347
EDWARD T HOLT. JR., PFS, CPA
WEST PALM BEAC:E{, I;I.ORIDA 33402-0147
BR IAN J, BRESCIA. CFP', CPA
TELEPHONE (561) 659.31360
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX{561)83S-0 28
FAX (561) 996.6248
W W W.NHMCPA.CpM
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the Village of North Palm Beach, Florida, as of and for
the year ended September 30, 2016, and the related notes to the financial statements, which
collectively comprise the Village of North Palm Beach, Florida's basic financial statements and
have issued our report thereon dated March 15, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village of
North Palm Beach, Florida's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Village of North Palm Beach, Florida's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Village of North Palm
Beach, Florida's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
11M
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
MARK J. BYMASTE R. CFE, CPA
RYAN M. SHORE, CFP°,CPA
LVEI PAN ,CPA
WILLIAM C. KISNER, CPA
REPORT ON INTERNAL CONTROL OVER
H ICHARO E, BOLTS, CPA
FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN
BELLE GLADE OFFICE
333 5.E ET
AUDIT OF FINANCIAL STATEMENTS
PAST OFFICE BOX 336
ICE2nd BOXSTR338
PERFORMED IN ACCORDANCE WITH
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
GO VERNMENT A UDITING STANDARDS
FAX (561) 996.6248
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business -type activities, each major fund, and the
aggregate remaining fund information of the Village of North Palm Beach, Florida, as of and for
the year ended September 30, 2016, and the related notes to the financial statements, which
collectively comprise the Village of North Palm Beach, Florida's basic financial statements and
have issued our report thereon dated March 15, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Village of
North Palm Beach, Florida's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the Village of North Palm Beach, Florida's internal control.
Accordingly, we do not express an opinion on the effectiveness of the Village of North Palm
Beach, Florida's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
11M
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of North Palm Beach,
Florida's financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
West Palm Beach, Florida
March 15, 2017
109
NH
&M
NOWLEN, HOLT & MINER, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
WEST PALM BEACH OFFICE
NORTFMWDGF CENTRE
515 N- FLAGLEN DRIVE:, 5(11TE 170D
POST OFT -ICEBOX 347
WEST PALM BEACE I, 11_URIDA 3-3402-0147
TELEPHONE (561 ) 659.3060
FAX (561 ) 835-06.8
W W W.NHMCPA.COM
MANAGEMENT LETTER IN ACCORDANCE WITH
THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Report on the Financial Statements
EVERETT B. NOWLEN (193&1984), CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
JANET R. BARICEVICH,CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENN ETT. CVA, ABV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T HOLT. JR., PFS,CPA
BRIAN J, BRESCIA. CFP', CPA
MARK J. BYMASTE R. CFE, CPA
RYAN M. SHORE, CFP°,CPA
ET
LVPAN,CPA
LViLLLW C. KIBNER, CPA
RICHARD E, BOTTS, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
13ELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX (561) 996.6248
We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for
the fiscal year ended September 30, 2016, and have issued our report thereon dated
March 15, 2017.
Auditor's Responsibility
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, and Chapter 10.550, Rules of
the Florida Auditor General.
Other Reports
We have issued our Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards and Independent Accountant's Report on an
examination conducted in accordance with AICPA Professional Standards, Section 601, regarding
compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General.
Disclosures in those reports, which are dated March 15, 2017, should be considered in conjunction
with this management letter.
Prior Audit Findings
Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not
corrective actions have been taken to address findings and recommendations made in the preceding
annual financial audit report. There were no findings or recommendations in the prior year that
required corrective actions.
110
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CPAMERICA INTERNATIONAL
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This
information is disclosed in Note 1 to the financial statements.
Financial Condition
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply
appropriate procedures and report the results of our determination as to whether or not the
Village of North Palm Beach, Florida has met one or more of the conditions described in Section
218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with
our audit, we determined that the Village of North Palm Beach, Florida did not meet any of the
conditions described in Section 218.503(1), Florida Statutes, during the fiscal year ended
September 30, 2016.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures. It is management's responsibility to monitor the
Village of North Palm Beach, Florida's financial condition, and our financial condition
assessment was based in part on representations made by management and the review of
financial information provided by same. Our assessment was done as of the fiscal year end. The
results of our procedures did not disclose any matters that are required to be reported.
Annual Financial Report
Sections 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we report the
results of our determination as to whether the annual financial report for the Village of North Palm
Beach, Florida for the fiscal year ended September 30, 2016, filed with the Florida Department of
Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the
annual financial audit report for the fiscal year ended September 30, 2016. In connection with our
audit, we determined that these two reports were in agreement.
Special District Component Units
Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not
a special district that is a component unit of a county, municipality, or special district, provided the
financial information necessary for proper reporting of the component unit, within the audited
financial statements of the county, municipality, or special district in accordance with Section
218.39(3)(b), Florida Statutes.
Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor
General, there are no special district component units of the Village of North Palm Beach, Florida.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the Management
Letter any recommendations to improve financial management. In connection with our audit, we
did not have any such recommendations.
111
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with
provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have
occurred, that have an effect on the financial statements that is less than material but which
warrants the attention of those charged with governance. In connection with our audit, we did not
have any such findings.
Single Audits
The Village expended less than $750,000 of federal awards and less than $750,000 of state
financial assistance for the year ended September 30, 2016, and was not required to have a federal
single audit or a state single audit.
Response to Management Letter
There were no items that required a response by management.
Purpose of this Letter
Our management letter is intended solely for the information and use of the Legislative Auditing
Committee, members of the Florida Senate and the Florida House of Representatives, the Florida
Auditor General, management, the audit committee, Village Council, and federal and state
awarding agencies and pass-through entities, and is not intended to be and should not be used by
anyone other than these specified parties.
March 15, 2017
West Palm Beach, Florida
112
NOWLEN, HOLT & MINER, P.A.
[qw;l:avioimal'lpHP(n:TluKaiam1F.I aN y
WEST PALM BEACH OFFICE
N ORT KBRI DOF CENTRE
5151_ FLAG LER 1)RIVE, SLI ITE 170D
POST OFFICE: E30X 347
WEST PALM BEAC:E{, FLORIDA 31802-0147
TELEPHONE (561) 659.31360
FAX{561)83S-0 28
W W W.NHMCPA.COM
INDEPENDENT ACCOUNTANT'S REPORT
ON COMPLIANCE WITH SECTION 218.415,
FLORIDA STATUTES
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
EVERETT S. NOWLEN (193&l984). CPA
EDWARD T. HOLT, CPA
WILLIAM B. MINER. RETIRED, CPA
ROBERT W. HENDRIX, JR., CPA
JANET R. SARICEVICH,CPA
TERRY L. MORTON, JR., CPA
N. RONALD BENN ETT. CVA, ABV, CFF, CPA
ALEXIA G. VARGA, CFE, CPA
EDWARD T HOLT. JR., PFS, CPA
BRIAN J, BRESCIA, CFP', CPA
MARK J. BYMASTE R. CFE, CPA
RYAN M. SHORE, CFP°,CPA
LVEI PAN ,CPA
WILLIAM C. KISNER, CPA
H ICHARD E, BDTTS, CPA
BELLE GLADE OFFICE
333 S.E. 2nd STREET
POST OFFICE BOX 338
BELLE GLADE, FLORIDA 33430.0338
TELEPHONE (561) 996.5612
FAX (561) 996.6248
We have examined the Village of North Palm Beach, Florida's compliance with Section 218.415, Florida
Statutes during the year ended September 30, 2016. Management is responsible for the Village of North
Palm Beach, Florida's compliance with those requirements. Our responsibility is to express an opinion
on the Village of North Palm Beach, Florida's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence
about the Village of North Palm Beach, Florida's compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances. We believe that our examination
provides a reasonable basis for our opinion. Our examination does not provide a legal determination on
the Village of North Palm Beach, Florida's compliance with specified requirements.
In our opinion, the Village of North Palm Beach, Florida complied, in all material respects, with the
aforementioned requirements for the year ended September 30, 2016.
This report is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and Florida House of Representative, the Florida Auditor General,
applicable management, and the Village Council, and is not intended to be and should not be used by
anyone other than these specified parties.
West Palm Beach, Florida
March 15, 2017
113
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • CRAMERICA INTERNATIONAL