VNPB FY 2020 Budget-in Brief
Village of North Palm Beach
Budget-in-Brief
Fiscal Year 2019-2020
At a Glance
Date of Incorporation
August 13, 1956
Fiscal Year
October 1 – September 30
Form of Government
Council/Manager
Area
5.8 square miles
Population
13,057
FY 20 Operating Budget
(General Fund + Country Club)
$30.1 million
Property Valuation
$2.3 billion
Millage Rate
$7.50 mils
FY 20 Capital Budget
$1.38 million
Budgeted Positions
Full-time = 153
Part-time = 96
Elected Officials
Darryl Aubrey, Mayor
Mark Mullinix, Vice Mayor
David Norris, Pres. Pro-Tem
Deborah Searcy, Council Member
Susan Bickel, Council Member
About North Palm Beach
The Village of North Palm Beach is located on the sunny east coast
of Florida, 9 miles north of West Palm Beach in Palm Beach County.
The land area of the Village is approximately 5.8 square miles. The
Village has an abundant amount of waterfront property created by
a number of lakes, canals, and the Atlantic Ocean. Other assets
include a Country Club with a golf course, driving range, pool, tennis
courts, a restaurant, and a banquet facility; four parks; marina;
library; a police and fire rescue station; and a public elementary
school.
Additionally, with such advantages as warm weather, sunshine, golf,
ocean fishing, boating, sandy beaches and balmy breezes, the
Village has much to offer enthusiastic people whether they are
raising families or are looking to retire.
Budget Overview
The budget is a plan (both financially and policy driven) for the
accomplishment of goals and objectives identified as being
necessary to the purpose of our local government. As a financial
plan, the budget includes estimates of resources required, tax and
non-tax revenues available to support operations, the
implementation of strategic priorities and the number of positions
estimated to fulfill the levels of service set forth by policy decisions.
Not only is the budget the means by which the Village implements
its strategic plan, it is the legal authorization to expend Village funds
during the fiscal year.
The budget is prepared according to Generally Accepted Accounting
Principles (GAAP) and adopted according to Florida’s statutory Truth
in Millage (TRIM) requirements. Florida Statutes require that budget
appropriations be made each year and that each year’s budget be
balanced.
This “Budget-in-Brief” presents a condensed overview of the fiscal
year 2020 Budget for the Village of North Palm Beach and is
intended to give residents information on the budget; the Village’s
approach to balancing the budget; the major sources of funding (i.e.
taxes, customer charges); as well as any major changes included in
the Fiscal Year 2020 budget.
Ultimately, the goal of this document is to make it easier to learn
about the Village’s budget, programs and services, while presenting
an accurate depiction of how resources are deployed.
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 1 of 11
Vision
NPB will be known for our
unparalleled amenities and
innovative approach to meeting
the needs of our safe and secure
community through continuous
improvement in infrastructure
and service delivery as identified
by our stakeholders.
Mission
We sustain NPB as the “best
place to live under the sun”
through
Superior Services
Timeless Traditions
Quality Amenities
Core Values
Our People
Continuous Improvement
Integrity
Strategic Goals
Financial Sustainability
Beautification & Quality of Life
Organizational Excellence
Strong Local Economy
Community Outreach
Waterways & Recreation
All Neighborhoods as Desirable
Places to Live
Mobility
Organizational Structure
The administrative day to day responsibilities are carried out
through the Village Manager. The Village Manager acts as the Chief
Executive Officer of the Village and is responsible for directing all
Village employees other than those hired directly by the Village
Council.
Awards and Recognition
GFOA Distinguished Budget Award
The Village has been awarded the Distinguished Budget Presentation
Award for its budget document from the Government Finance
Officers Association (GFOA) since 2009. This award is the highest
form of recognition in governmental budgeting. Its attainment
represents a significant accomplishment by a governmental agency,
its financial staff, and its management.
GFOA Certificate of Achievement for Excellence in Financial
Reporting
The Village has been awarded the Certificate of Achievement for
Excellence in Financial Reporting award from the GFOA for its
Comprehensive Annual Financial Report (CAFR) since 1987. This
certificate is a prestigious national award that recognizes
conformance with the highest standards for preparation of financial
audit reports.
CALEA
The NPB Police Department has been awarded national accreditation
by the Commission on Accreditation for Law Enforcement Agencies
since 2008. By choosing to be accredited through CALEA, the Police
Department voluntarily accepted the challenge to meet the most
rigorous set of standards designed for law enforcement in the United
States.
Village
Residents
Village
Council
Village
Manager
Village
Departments
Village
Attorney
Village
Boards
Village
Clerk
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 2 of 11
Budget Calendar
May Strategic
Planning
Workshop
May
Budget
preparation
materials
distributed to
departments
June Budget review
July
Public Hearing
for Proposed
Budget &
Tentative
Millage Rate
August
Budget
presentations to
Village Council
September
Advertise & hold
two public
hearings to
adopt budget
and set final
millage rate
October
Start of Fiscal
Year
Budget Amendment
The budget is adopted at the fund
level so expenditures may not
legally exceed appropriations at
that level.
Any amendments that alter the
total expenditures for a fund must
be approved by the Village
Council.
Budget Process
The Village’s annual budget process relies on a timetable of tasks
and the planning of steps and meetings that must be maintained in
order to comply with state requirements as well as internal
requirements for sound planning and fiscal responsibility.
The budget process spans several months and involves an in-depth
analysis of revenues and expenditures, examination of service levels
across all departments, and opportunities for public input on Village
priorities including several public workshops. The end result of this
collaborative budget process is a balanced budget which is aligned
with the Village’s overall priorities.
Village Council adopts the budget by ordinance at a public hearing
in late September. The Adopted Budget becomes effective October
1st. The final budget includes an operating budget and a capital
budget:
Operating Budget – the operating budget includes personnel
costs and annual facility operating costs. It is a plan of
current (annual) spending and the means to pay for it (taxes,
fees, etc.). This budget includes the General Fund and
Enterprise Fund.
Capital Budget – the capital budget is based on the first year
of needs in the five-year Capital Improvement Plan (CIP).
The CIP includes long-term spending for the acquisition of
assets and the means to pay for them, including borrowing.
Village Council adopts a five-year CIP at the same time the
Operating Budget is approved.
The Budget process does not end with the adoption of the budget.
Instead, it is a continuous, ongoing cycle that includes budget
development, public review, official adoption, implementation, and
auditing.
Budget
Preparation
Budget
Requests
Review
Requests
Proposed
Budget
Budget
Workshops
Public
Hearings to
Adopt
Budget
Continuous
Monitoring
& Reporting
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 3 of 11
Governmental
Budgeting
Governmental budgeting differs
from private sector budgeting
because governments are
primarily responsible for
accountability in spending public
tax dollars vs. reporting profits
and losses.
Public funds must be used as
efficiently and effectively as
possible to provide programs and
services. The budget document is
a statement of the Village’s
priorities for providing the
services that are desired by the
public.
Annual Budget
Two primary components:
Operating Budget
Capital Budget
Two funds:
General Fund
Enterprise Fund
Balanced Budget:
The Village is required by law
to balance its budget. The
budget that is finally
approved needs to be
balanced so that current
revenues are sufficient to pay
for current services.
Purposes of Budget:
Determines the services the
Village will provide and how
they will be funded.
Sets the property tax levy
needed to fund the services
identified.
Governmental Budgeting
Revenue collected by the Village is directed into different funds.
These funds help manage Village spending by directing the revenue
dedicated to specific activities or objectives to a group of related
accounts. By maintaining separate funds, the Village is able to
comply with laws that require certain money to be spent for specific
purposes.
Basically, a fund provides a distinct accounting mechanism to keep
public money designated for different purposes from being
commingled.
The Village’s operating budget has two funds, and the largest is the
General Fund:
General Fund – The General Fund is the chief operating fund
of the Village and accounts for all of the core services of general
government (including ad-valorem taxes) that are not required
to be accounted for separately.
Services provided in the General Fund include: Public Safety,
Sanitation, Recreation, Library, Streets & Roads Maintenance,
Public Improvements, Planning, Zoning & Building, and General
Administrative Services.
Enterprise Fund – The Enterprise Fund is used to account for
the Village’s Golf and Country Club operation, which is
considered a “business-type” municipal activity. It is the
Village’s only self-supporting enterprise for which fees charged
to users are intended to pay for the full cost of operations,
maintenance and capital improvements.
Other funds used by the Village are briefly described below. These
funds are not considered budgetary funds because they either
involve multi-year projects or are funds held in trust for someone
else; they are used only for financial reporting purposes:
Special Revenue Funds –These funds account for the
proceeds of specific revenue sources that are legally restricted
to expenditures for specified purposes. Examples include
grants and infrastructure surtax.
Capital Project Fund –This fund accounts for financial
resources to be used for the acquisition or construction of major
capital facilities or improvements (other than those financed by
proprietary funds) being financed from general long-term debt,
grants, or transfers from other funds.
Fiduciary funds - used to account for resources that are held
by the government as a trustee or agent for parties outside the
government and that cannot be used to support the
government’s own programs. The funds in this category are the
Village’s Pension Trust Funds and Agency Funds.
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 4 of 11
Budget Challenges
Each budget year is an
opportunity to rethink how the
Village allocates its financial
resources to achieve the goals
and objectives of the Village
Council.
In the budget process, there will
be more requests to fund
programs or provide tax relief
than there is money to go around;
as a result, Village Council must
weigh the demands alongside the
need to keep the Village’s budget
in balance.
The Budget reflects
Public choices about which goods
& services the Village will or will
not provide
Prioritization of activities in which
the Village will be involved
Relative influence of various
participants and interest groups
in the budget development
process
Village’s plan for acquiring and
using its resources
The budget is a…
Policy Guide
What services the Village will
provide and why
Financial Plan
How much will the services cost
and how will they be funded
Operations Guide
How services will be delivered to
the community
Communications Device
How services are communicated
to the community
Total Budget by Fund
The Fiscal Year 2020 village-wide operating budget amounts to
$30.1 million. The majority (approximately 87%) of the budget is
attributable to the General Fund.
General
Fund
Country
Club
Total
Budget
Positions FT = 146
PT = 68
FT = 7
PT = 28
FT = 153
PT = 96
Revenues
Ad Valorem Taxes $16,736,574 $16,736,574
Utility Service
Taxes 2,424,292 2,424,292
Franchise Fees 1,315,000 1,315,000
Sales & Use Taxes 308,655 308,655
Licenses & Permits 1,110,200 1,110,200
Inter-
Governmental 1,507,239 1,507,239
Charges for
Services 2,516,812 3,361,854 5,878,666
Fines & Forfeitures 82,715 82,715
Interest 95,530 95,530
Food & Beverage 329,500 329,500
Miscellaneous 27,500 292,234 319,734
Total Revenues $26,123,977 $3,983,588 $30,107,565
Expenses
General
Government $ 3,257,617 $ 3,257,617
Public Safety 10,290,842 10,290,842
Public Works 5,540,658 5,283,828
Community
Development 1,773,946 1,773,946
Leisure Services 3,058,612 3,058,612
Transfer Out 417,150 417,150
Contingency 231,795 231,795
Golf 3,217,043 3,217,043
Food & Beverage 50,000 50,000
Country Club
Admin 282,856 282,856
Debt Service 1,553,357 433,689 1,865,025
Total Expenses $26,123,977 $3,983,588 $30,107,565
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 5 of 11
Revenue Sources
Ad-Valorem Taxes
Levied on the taxable value
of a property in the Village
Utility Taxes
Consumer consumption of
utility services provided in
the Village
Franchise Fees
Charges to service providers
operating within the Village
Sales & Use Taxes
Gasoline taxes collected at
the state level and
distributed to cities &
counties
Licenses & Permits
Fees collected from
businesses providing goods
and/or services within
Village limits
Inter-governmental Revenues
Revenues received from
other governmental agencies
Fines & Forfeitures
Revenues generated by
enforcement and prosecution
of municipal ordinances and
state statutes
User Charges
Charges for services
provided. For example:
Recreation fees for
sports programs,
community programs,
special events, and
facility use.
Charges for services
resulting from
Country Club
operations.
Where the Money Comes From
Understanding where Village funds come from is the first step in
developing a budget plan; in other words, revenues are the key to
developing the Village’s budget.
The Village generates revenue from several sources to fund the
services it provides, compensate its employees and pay its debt and
other obligations. The major sources are briefly described in this
section to illustrate where the Village gets its money, why it uses
those sources and how much it expects to collect in Fiscal Year 2019
(revenues are shown by source and by fund).
Total Revenue (by source)
Total Revenue (by fund)
$16,736,574
$2,424,292
$1,315,000
$308,655
$1,110,200
$1,507,239
$5,878,666
$826,939
56%
8%
4%
1%
4%
5%
20%
3%
Ad‐Valorem Taxes
Utility Service Taxes
Franchise Fees
Sales & Use Taxes
Licenses & Permits
Inter‐Governmental Revenue
Charges for Services
Other
Total Revenue = $30,107,565
$26,123,977
87%
$3,983,588
13%
General Fund
Enterprise Fund
Total Revenue
$30,107,565
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 6 of 11
Did You Know?
The Village does not assess many
of the traditional fees that other
municipalities use for generating
revenue. Rather, it primarily
depends on ad-valorem taxes to
fund services. As a result,
residents are not assessed
additional fees for solid waste or
fire rescue services.
Assessed Value
The assessed value is the dollar
value assigned to a property to
measure applicable taxes (also
known as an ad valorem tax)
Taxable Value
The taxable value of a property is
its assessed value less any
exemptions. The General Fund
Budget is prepared based on 95%
of the total taxable value in the
Village to allow for Tax Collector
fees, under collection and
changes by the Value Adjustment
Board
Tax Levy
The tax levy is the total amount
of property taxes that the Village
needs to collect in order to
support the services to be
provided during the year.
Millage Rate
The millage rate is the tax rate
used to calculate your ad valorem
taxes. One mil equals $1 for
every $1,000 of taxable property
value.
For example, the Village’s millage
rate is 7.50, which means you are
paying $7.50 in taxes for every
$1,000 of taxable property value.
The operating millage rate cannot
exceed 10 mills.
Property Tax
The Village’s operating budget relies on property taxes for
approximately 56% of its total budget. A property tax (or millage
rate) is an ad valorem tax on the value of a property. Property taxes
are the single largest revenue line item in the budget and critical to
funding the operations of the Village.
Your property tax bill is based on the assessed value of your
property, any exemptions you qualify for and the property tax rate.
It is important to note that your property tax bill contains more than
just your Village taxes. You also pay property taxes to the county
for county-wide services, school board, county library and debt
service for these entities. Even when the Village’s tax rate remains
constant or is reduced, you may pay more taxes if your property
value increases or other taxing authorities raise their rates.
For the FY 2020 budget, a property assessed at $400,000 and a
homestead exemption of $50,000 will pay approximately $7,602 in
total property taxes. The portion of the total bill that North Palm
Beach will receive in ad-valorem assessment on this property
amounts to $2,625, or 35% of your total tax bill. The graphic below
shows the breakdown of your tax dollar amongst the various
governmental agencies.
Breakdown of your tax dollar
2015 2016 2017 2018 2019 2020
Millage Rate 7.3300 7.3300 7.3300 7.3300 7.5000 7.5000
6.0000
7.0000
8.0000
9.0000
10.0000
Millage Rate History
VNPB
35%
PBC
23%
Special
Districts
7%
School Board
35%
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 7 of 11
Expenses
The expense portion of the
budget funds current Village
services, including the salaries of
Village employees, pension, debt
service, and routine operating
expenses. It is a commitment to
a level of appropriations for a
particular fiscal year.
Budget Categories
Personnel
Employee’s salaries, benefits
& taxes paid by the Village.
Operating
Supplies, materials and
other consumable items
related to duties or function
of the division
Services expenses, for
example: utilities, general
repair & maintenance,
contracts for outside services
and outsourcing
Capital Outlay
Money spent to acquire,
maintain, repair, or upgrade
capital assets.
Non-departmental
Items that are not assigned
to a specific function or
division. This would include
items such as liability
insurance
Debt Service
Required annual principal
and interest payment on
debt for the fund in which
the debt was issued.
Transfers
Transfer of revenues or
financial resources from one
fund to another
Contingency
An appropriation within an
operating fund to cover
unforeseen events which
occur in the budget year.
Where the Money Goes
Village government is labor intensive, especially for the operations
supported by the General Fund. North Palm Beach makes most of
its expenditures (approximately 61%) on the employees who deliver
municipal services.
This section describes the major expenditure categories to illustrate
how the Village spends the money it collects and how much it
expects to spend in Fiscal Year 2020 (expenditures are shown by
department and by category).
A look at the FY20 Operating Budget by Department:
A look at the FY20 Operating Budget by Category:
$3,257,617
$10,290,842
$5,540,658
$1,773,946
$3,058,612
$1,987,046
$3,217,043
$332,856
$231,795
$417,150
11%
34%
18%
6%
10%
7%
11%
1%
1%
1%
General Government
Public Safety
Public Works
Community Development
Leisure Services
Debt Service
Golf
Country Club Admin/F&B/Other
Contingency
Transfer Out
Personnel
$18,484,140
61%
Operating
$8,987,434
30%
Debt
Service
$1,987,046
7%
Transfer
Out
$417,150
1%
Contingency
$231,795
1%
Total Expenses = $30,107,565
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 8 of 11
CIP
Village Council adopts a five-year
Capital Improvement Plan (CIP)
budget at the same time the
Operating Budget is approved;
however, the first year of the plan
is the only year for which funding
is authorized.
Total 5-Year CIP
$13.7 million
Total FY 20 Capital
$1.38 million
FY 2020 Planned Projects
Ventilation/Rehab Fans
Virtualization
Range / Cover Shot
Rebuild Evidence Room
Lakeside Park Paths
Anchorage Park Enhancement
Asphalt Resurfacing
Pool Chiller
Alley Wall Replacement
Sidewalks & Crosswalks
Bridge Improvement – US1
Lakeside Park Seawall
Storm-water Study
Capital Improvement Plan
Protecting, maintaining and replacing the Village’s infrastructure
such as roads, bridges, parks and public buildings is one of the most
important aspects of running an efficient, responsible municipality.
This is accomplished through the use of a Capital Improvement Plan
(CIP).
The Village’s five year CIP is an expenditure plan that provides the
Village with a financial strategy for major infrastructure projects that
require multiple years to plan, design and fund. In other words, it
is the blueprint for new construction and major maintenance
projects designed to protect and preserve the Village’s outstanding
quality of life.
While the plan serves as the long range plan, it is updated annually
to add new appropriations and/or projects while evaluating
priorities, new requirements and new funding sources.
Total 5-Year CIP = $13.7 million
$2.34
17%
$3.34
24%
$4.43
32%
$0.25
2%
$3.35
25%
General Revenues
Infrastructure
Surtax
Grant Funding
Country Club
Other
Total CIP
By Funding
Source
(in millions)
$1.07
8%
$0.11
1%
$1.05
7%
$1.52
11%
$9.03
66%
$0.93
7%
Vehicles &
Equipment
Technology
Facilities
Park Development
Streets & Roads
Stormwater
Total CIP
By Category
(in millions)
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 9 of 11
Debt Service
The Village borrows a large sum
of cash to pay for projects and
then repays it with interest over a
long period of time. The amount
repaid each year is called debt
service.
Financing Options
Bank Loan
Fixed rate loan with defined
maturity
Loan or line of credit that has a
variable interest rate and a
flexible payment provision.
Capital Lease
Lease-purchase agreement in
which payments are made to a
vendor or a third party investor
over time, acquiring the property
at the end of the lease period for
a nominal payment
Inter-fund Loan
Inter-fund loans are used to loan
money from one fund to any other
fund of a municipality whenever
the loan is authorized by official
ordinance of the governing body
Revenue Bond
Pledged by a specific revenue
source, not government’s taxing
power
General Obligation Bond
Pledged by ad valorem taxes
which requires voter referendum
approval (Secured by the “full
faith and credit” of the
government).
Note: None of the Village’s long-
term debt comprises debt backed
by the full faith and credit of the
government.
Debt
The Village issues debt to fund the building, maintenance, and
improvement of the Village’s infrastructure and other capital assets.
Every year, a portion of the Village’s expense budget must be used
to fund debt service (funds included in the expense budget for the
payment of principal and interest on long-term and short-term
debt).
Currently, The Village has two loan obligations and an inter-fund
loan outstanding. In addition, The Village has also entered into a
capital lease program for a portion of its fleet.
A total of $1.98 million has been budgeted in the upcoming year as
debt service expense. The breakdown is provided below:
Country Club (FY 2020 Debt Service Total = $433,689)
$4,893,673 Promissory Note
A note in the amount of $4,893,673 was issued in 2006 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.
$1.7 million Inter-Fund Loan
The General fund advanced $1.7 million to the Club to
provide funds for the renovation of the Golf Course. The
Country Club will start paying back the loan in fiscal year
2025, which is after the existing bank loan is paid off.
General Fund (FY 2020 Debt Service Total = $1,553,357)
$15 million Non-Ad Valorem Revenue Notes
Two revenue notes (totaling $15 million) were issued in 2017
to finance the cost of constructing and equipping a new
country club clubhouse. The notes are secured by a
covenant to budget and appropriate legally available non-ad
valorem revenues of the Village:
o $8.9 million tax-exempt issuance
Interest is payable on June 1 and December 1 of each
year beginning December 1, 2017. Principal
payments start June 1, 2025 with the final payment
on June 1, 2032.
o $6.1 million taxable issuance
Interest is payable on June 1 and December 1 of each
year. Principal payments start June 1, 2018 with the
final payment on June 1, 2025.
The fiscal year 2020 budgeted debt service for these notes is
$1,293,357.
Capital Lease
Lease purchase agreement for a portion of the Village’s Fleet.
The fiscal year 2020 budgeted lease payment is $260,000.
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 10 of 11
Contact Us
Website
www.village-npb.org
Departments
Village Clerk
(561) 841-3355
Village Manager
(561) 904-2122
Finance
(561) 841-3360
Information Technology
(561) 841-3356
Human Resources
(561) 882-1155
Community Development
(561) 841-3365
Public Works
(561) 691-3440
Recreation
(561) 841-3386
Library
(561) 841-3383
Police
(561) 848-2525
Fire Rescue
(561) 882-1141
Golf
(561) 691-3433
Tennis
(561) 691-3425
Conclusion
The annual budget is a vital tool for communicating public policy to
the public. It contains the financial, political, and service delivery
plans for the upcoming fiscal year. A significant amount of time and
effort is expended in preparing the annual budget.
Several budget workshop meetings were held during the months of
July, August, and September where Council reviewed the substance
and content of this budget in detail.
The FY 2020 budget reflects continued improvement to citizen
services, public safety, and public facility maintenance while
emphasizing improved community appearance and financial
stability.
Our goal is to give you the information and knowledge you need to
understand why your leaders make their financial decisions. We
hope you found this document both useful and informative.
A full copy of our budget and other financial documents are available
on our website at http://www.village-npb.org.
Village of North Palm Beach FY 2020 "Budget-in-Brief"Page 11 of 11