FY 2021 CAFRVillage of North Palm Beach, FL
Annual Comprehensive
Financial Report
Fiscal year ended September 30, 2021
The Village of
North Palm Beach, Florida
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended September 30, 2021
Prepared by:
Finance Department
Samia Janjua
Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... i
Principal Village Officials ....................................................................................................................... viii
Organizational Structure .............................................................................................................................. ix
GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................. x
FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................... 1
Management's Discussion and Analysis ....................................................................................................... 4
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 14
Statement of Activities ......................................................................................................................... 15
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................. 17
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position ..................................................................................................... 18
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds ........................................................................................... 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities .................................... 20
Statement of Net Position - Proprietary Fund ...................................................................................... 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 Changes in Total OPEB liability ....................................................................................... 80
Schedule of Changes in Net Pension Liability – General Employees Retirement Fund ....................... 81
Schedule of Changes in Net Pension Liability – Fire and Police Retirement Fund .............................. 83
Schedules Contributions and Investment Returns – Retirement Funds ............................................... 85
Notes to the Schedule of Contributions ................................................................................................ 86
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund ................................................................................................. 87
Notes to the Budgetary Required Supplementary Information ............................................................ 88
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
TABLE OF CONTENTS
(Continued)
OTHER SUPPLEMENTARY INFORMATION:
Schedule of Departmental Expenditures– Budget and Actual – General Fund .................................... 89
Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 92
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds ........................................................................................................ 93
Combining Statement of Net Position – Pension Trust Funds .............................................................. 94
Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds ........................... 95
Combining Statement of Net Position – Custodial Funds ..................................................................... 96
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds .................................. 97
Schedule of Revenues and Departmental Expenses –
Budget and Actual – Country Club Fund – Budgetary Basis ............................................................ 98
STATISTICAL SECTION
Net Position by Component ................................................................................................................. 99
Changes in Net Position ..................................................................................................................... 100
Fund Balances, Governmental Funds ................................................................................................. 102
Changes in Fund Balances, Governmental Funds .............................................................................. 103
Net Assessed Value and Estimated Actual Value of Taxable Property ............................................. 105
Property Tax Rates - Direct and Overlapping Governments............................................................... 106
Principal Property Taxpayers ............................................................................................................. 107
Property Tax Levies and Collections ................................................................................................. 108
Ratios of Outstanding Debt by Type ................................................................................................... 109
Direct and Overlapping Governmental Activities Debt ...................................................................... 110
Pledged-Revenue Coverage ................................................................................................................ 111
Demographic and Economic Statistics ................................................................................................ 112
Principal Employers ........................................................................................................................... 113
Full-Time Equivalent Village Government Employees by Function .................................................. 114
Operating Indicators by Function/Program ........................................................................................ 115
Capital Asset Statistics by Function/Program ..................................................................................... 116
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 ................................ 117
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ............................................................................................................................... 119
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes .................................................................................................... 122
INTRODUCTORY SECTION
THE VILLAGE OF
NORTH PALM BEACH
“THE BEST PLACE TO LIVE UNDER THE SUN”
501 U.S. Highway 1, North Palm Beach, FL 33408-4902 * (561) 841-3380 * Fax (561) 848-3344
March 24, 2022
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 Annual Comprehensive
Financial Report (Annual Report) for the Village of North Palm Beach, Florida for the fiscal year ended
September 30, 2021.
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, 2021. 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 Annual Report’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.
ii
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 northeastern 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, tennis courts and restaurant; 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).
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The level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is established at the fund level. The Village maintains an encumbrance accounting
system as one technique of accomplishing budgetary control. All expenditures, other than personal
services, are controlled by a procurement system which encumbers purchase orders against the budget
prior to issuance to vendors. All appropriations lapse at year end; however, encumbrances specifically
designated to be carried over to the subsequent year are re-appropriated in the following year.
ECONOMIC OUTLOOK
Property Values
The Village obtains a major portion of its annual General Fund financial resources (67% in 2021) 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, there has been significant residential property investment in the community over
the past few years. 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. By comparison, the
Village’s gross taxable property values increased in 2021 to $2,433,243,145 or nearly 3.78%, over 2020’s
valuation.
In 2016, following the completion of a design charrette process in which North Palm Beach residents
described their vision for the community’s future, the Village adopted the Citizens’ Master Plan. It is
anticipated that a viable Master Plan that identifies the highest and best use of properties on U.S. 1 and
Northlake Boulevard and Alternate A1A will encourage investment in the community that will create an
enhanced sense of place, active uses and an increase in Village revenues. Significant initiatives included
the creation of a form-based code to encourage redevelopment in the Village’s commercial corridors,
which was completed in 2020 and has resulted in the submittal of applications and concept plans for the
redevelopment of a number of underutilized commercial properties; the study of the US1 Corridor to
determine if two of the roadway’s six lanes should be repurposed for landscaping and bicycle/pedestrian
traffic; and the redesign of the US1 and Prosperity Farms Road Bridges to serve as architectural features
signaling the entry into the community.
Investment Revenues
The Great Recession had a significant impact on Village investment revenues. In the short-term, the
Village reacted by modifying its investment strategies by directing investments 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.
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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 has had a very positive financial impact on both retirement 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 2018, the Village introduced a
high deductible insurance plan along with funding health saving accounts to manage growing expenses.
The Village continued its focus on Employee Wellness as a means 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 64% of the annual budget is allotted for wages and fringe benefits.
INITIATIVES AND FUTURE PROJECTS
For Fiscal Year 2020-21, the Village Council reiterated its vision to sustain the Village as the “Best Place
to Live Under the Sun.” As part of that vision, the Council developed the following goals to guide the
Village’s financial plan in 2021:
Goal: Financial Sustainability
Through this goal, the Village has sought to ensure that the property taxes and fees levied on residents
and businesses are equitable relative to the services received and that they do not increase significantly
beyond the rate of inflation or the growth in property values. Annexation of adjacent unincorporated
areas and implementation of the Citizens’ Master Plan Report (adopted in October, 2016), which will
encourage mixed use development along the Village’s commercial corridors and provide for desired
investments in residential districts as well as simplified code regulations, will assist the Village in
achieving these goals.
Functions at the Country Club were reviewed to ensure that revenue is generated to finance debt, cover
operating and maintenance costs and begin funding future replacement activities. Work continues on
this effort, but the performance of the Club has exceeded expectations in the nascent stages of the new
operation. Additionally, the Village adopted a new fee structure that equitably distributes financial
responsibility for storm water infrastructure construction and maintenance during the 2021 fiscal year.
Goal: Beautification and Quality of Life
To support one of the suggestions to improve and stabilize neighborhoods in the Citizens’ Master Plan
Report, the Village Council recently established the Environmental Committee. The newly established
Environmental Committee works with staff and neighborhood participants to identify necessary
improvements and is responsible for developing and implementing programs to address them. The
Committee tackled a series of initiatives in its initial year of existence but will take the lead in guiding the
Village Council’s strategic initiative to develop a Green/Environmental Sustainability Policy. Currently,
the Committee is focusing attention on water quality initiatives and evaluating a “community greening”
initiative.
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Goal: All Neighborhoods as Desirable Places to Live
An emphasis on code compliance is a key to achieving this goal. The Citizens’ Master Plan Report
highlighted this point by pointing to “stressed” neighborhoods and identifying a lack of landscape and
home maintenance, faded exterior paint broken shutters and overgrown lawns as indicators. To address
those issues, the Village has continued to fund a third Code Compliance Officer and will begin to adjust
staffs’ schedules to provide coverage on weekends. Code will also work with the Neighborhood
Enhancement Team to collaborate with residents in addressing quality of life issues in their
neighborhoods.
Another strategy identified in the Citizens’ Master Plan Report was the need to establish infill regulations
that ensure compatibility in the neighborhood. Residents that participated in the Citizens’ Master Plan
Report charrette process voiced concerns about the character of new housing in established
neighborhoods – specifically the mass of houses being constructed in single family neighborhoods.
There were other issues, such as the desire to allow for “granny flats” in the Village, that were identified
during the charrette process as well. To address these and similar issues, the Village initiated a review
of its land development regulations related to residential neighborhoods. The process
Goal: Waterways and Recreation
The Village will continue efforts to maintain a high level of appearance and condition of Village parks and
recreational facilities, including the Country Club and reinvigorating recreational activities for a fresh
approach that is responsive to the current interests of residents. To that end, the Parks and Recreation
Department, in response to residents’ requests to enhance the Village’s athletic and recreation programs,
conduct surveys and small focus groups as part of the process of revisiting the community’s needs to
best determine what activities should be offered as part of a Needs Assessment. The Needs Assessment
results will guide activities for the next few years.
Goal: Strong Local Economy
The Citizens’ Master Plan Report served as the springboard for the effort to draft and adopt new
regulations that will breathe life in our commercial districts, create a more sustainable financial future for
the community and enhance the small-town living that makes North Palm Beach a special place to live.
To implement the Master Plan, a planning consultant assisted the Village with a review and rewrite of the
Comprehensive Plan, Land Development regulations and application processes to facilitate the
development process. Based upon public feedback in response to development applications submitted
to the Village, the Village Council has indicated that portions of the new Code must be revisited to better
meet community expectations. As part of this effort, the Village also reconstituted the Business Advisory
Board to assist in revitalizing and redeveloping our commercial corridors.
While rewriting the Village’s Land Development Regulations will encourage new private investment, there
will continue to be public investment needs as well. New infrastructure or improvements that will benefit
the commercial areas will be required over time. The use of a Community Redevelopment Agency (or
CRA), which implements a tax increment financing plan, is a common tool used throughout Florida and
the nation. However, establishing a CRA requires county approval and Palm Beach County has a policy
that precludes the creation of new CRAs. While a CRA may not be a viable economic development tool
for the Village, the Village’s Audit Committee and Business Advisory Board have provided preliminary
feedback on a staff proposal to allocate a portion of ad valorem tax revenue from new commercial
development for business retention activities as well as capital investments in commercial areas.
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Goal: Improve Mobility
Palm Beach County and the Florida Department of Transportation each have bridge replacement projects
scheduled to take place within the Village limits within the next two years. The replacement of these
bridges at Prosperity Farms Road and US1 (both over the Earman River) afford the Village the
opportunity to introduce some of the design concepts identified in the Citizens’ Master Plan Report.
Ensuring that pedestrians and bicyclists (as well as golf carts) are accommodated, adding architectural
features and taking advantage of water views will create new gateway elements for the community to
enjoy.
Additionally, although the Village made significant investments in the bridge during FY2019, staff has
begun preparing for preliminary engineering necessary to replace the Lighthouse Bridge as well as initial
concept plans to provide traffic calming on Lighthouse Drive in accordance with the Master Plan.
Goal: Organizational Excellence
Due to the failure to meet service and maintenance standards, the Department of Public Works was
restructured during the fiscal year. The Department’s leadership team was completely changed to
engender a culture of collaboration and strategic thinking. With this change, service delivery has been
refined and improved, infrastructure projects are moving forward, division leaders are collaborating with
one another and long-term planning is the norm.
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 Annual Comprehensive Financial Report for the fiscal year ended September 30, 2020. The Village
has received this award since 1988. 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 Annual Report. 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 Annual Report
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, 2020. The Village has received this award since 2010.
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.
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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,
Andrew D. Lukasik
Village Manager
viii
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
PRINCIPAL VILLAGE OFFICIALS
SEPTEMBER 30, 2021
Title Name
Mayor Darryl C. Aubrey
Vice Mayor Deborah Searcy
President Pro Tem Mark Mullinix
Council Member David Norris
Council Member Susan Bickel
Village Manager Andrew D. Lukasik
Director of Finance Samia Janjua
Village Clerk Jessica Green
Village Attorney
Village Boards
Audit Committee
Business Advisory
Construction Board of
Adjustment
Golf Advisory
Infrastructure Surtax
Environmental Committee
Library Advisory
Pension Boards
Planning Commission
Recreation Advisory
Waterways Board
Zoning Board of Adjustment
The Residents
Village Council
Village Clerk
Operating Departments
Community Development
Finance
Human Resources
Information Technology
Library
Police
Fire Rescue
Public Works
Parks & Recreation
Country Club
Village Manager
Village of North Palm Beach OrganizationalStructure
ix
x
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of North Palm Beach
Florida
For its Annual Comprehensive
Financial Report
for the Fiscal Year Ended
September 30, 2020
Executive Director/CEO
FINANCIAL SECTION
1
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
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, 2021, 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
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
2
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, 2021, 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 80 through 86, and budgetary comparison
information on pages 87 through 88 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.
3
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 4, 2022, 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
solely 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 the effectiveness of
the Village of North Palm Beach, Florida’s 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 4, 2022
4
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, 2021. 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
2021 2020 (Decrease)Page #
Total net position $33.68 $29.88 $3.80 14
Unrestricted net position available for future use $7.48 $3.53 $3.95 14
Governmental net position $30.41 $30.09 $0.32 14
Total revenues from all sources $34.68 $33.02 $1.66 15
Governmental revenues $21.72 $29.15 ($7.43)15
Total cost of all Village programs $30.89 $30.24 $0.65 15
Governmental transfers to Business-type $3.53 $3.53 15
Governmental revenues over (under) expenses $0.31 $3.26 ($2.95)16
General fund revenues over (under) expenditures $1.59 $2.23 ($0.64)19
General fund unassigned fund balance $13.89 $11.62 $2.27 17
As a percent of general fund expenditures 53.71%45.95%7.76%
Country Club revenues over (under) expenses $3.49 ($0.47)$3.96 22
Change in total long-term debt for the Village $0.23 ($0.26)$0.49
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.
5
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 eight individual governmental funds: the General Fund, one Capital Projects
Fund, and six 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, the Infrastructure Surtax Fund, and the American Rescue
Plan Act (ARPA) Fund all of which are considered major funds (generally accepted accounting
principles define a fund as major based on that fund’s size relative to the other funds of the
government; a fund may also be reported as major if the government's officials believe that fund is
particularly important to financial statement users). The remaining funds are considered non-major
funds, and data from these governmental funds is combined into a single column for an aggregated
presentation. The basic governmental fund financial statements can be found on pages 17-20 of
this report.
• Proprietary Funds
The Village's only proprietary fund is the Country Club Fund, which charges customers for the
services it provides. These services are generally reported in proprietary funds. Proprietary funds
are reported in the same way that all activities are reported in the Statement of Net Position and the
Statement of Activities. The basic proprietary fund financial statements can be found on pages 21-
23 of this report.
6
• 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 Custodial 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 $33.68 million at the close of the most recent fiscal year.
A significant portion of the Village's net position (73.57%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment), less any related debt still outstanding, which was used to
acquire those assets. The Village uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending.
7
Table 2
Village of North Palm Beach
Net Position
(In Thousands)
Governmental Business-type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Assets:
Current and other assets 23,498$ 17,755$ (1,258)$ (2,177)$ 22,240$ 15,578$
Capital assets 33,341 36,278 6,811 4,232 40,152 40,510
Total assets 56,839 54,033 5,553 2,055 62,392 56,088
Deferred outflows of resources:3,433 2,968 8 7 3,441 2,975
Liabilities:
Current liabilities 4,284 1,634 1,183 873 5,467 2,507
Long-term liabilities 21,703 21,660 1,039 1,353 22,742 23,013
Total liabilities 25,987 23,294 2,222 2,226 28,209 25,520
Deferred inflows of resources:3,878 3,608 64 50 3,942 3,658
Net positon:
Net investement in capital assets 18,910 22,423 5,874 2,947 24,784 25,370
Restricted 1,419 986 1,419 986
Unrestricted 10,078 6,690 (2,599) (3,161) 7,479 3,529
Total net position 30,407$ 30,099$ 3,275$ (214)$ 33,682$ 29,885$
Governmental Activities
The cost of all governmental activities this year was $24.94 million. As shown on Table 3, Changes in Net
Position, grants and those who directly benefited from the programs paid for $4.13 million of this cost and
$20.81 million was financed through general revenues. Governmental activities increased the Village's net
position by $0.31 million, thereby accounting for 8% of the total increase in the net position of the Village.
Additional detail is shown in Table 3, which follows on the subsequent page.
8
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Activities Total
2021 2020 2021 2020 2021 2020
Revenues:
Program revenues:
Charges for services 3,506$ 3,731$ 5,903$ 3,768$ 9,409$ 7,499$
Operating grants and contributions 602 718 602 718
Capital grants and contributions 22 850 22 850
General revenues:
Property taxes 17,629 16,991 17,629 16,991
Local option gas taxes 283 273 283 273
Local option infrastructure surtax 1,012 870 1,012 870
Utility service taxes 2,539 2,558 2,539 2,558
Sales and use taxes 1,548 1,346 1,548 1,346
Franchise taxes 1,354 1,305 1,354 1,305
Investment earnings 81 502 1 82 502
Miscellaneous 181 105 181 105
Gain on asset disposals 21 21 -
Total revenues 28,778 29,249 5,904 3,768 34,682 33,017
Expenses:
Program expenses:
General Government 3,819 3,541 3,819 3,541
Public Safety 11,260 12,103 11,260 12,103
Public Works 5,417 5,634 5,417 5,634
Community Development 1,262 1,399 1,262 1,399
Leisure Services 2,706 2,796 2,706 2,796
Interest on long-term debt 478 521 478 521
Country Club 5,942 4,243 5,942 4,243
Total expenses 24,942 25,994 5,942 4,243 30,884 30,237
Transfers (3,528) 3,528
Increase (decrease) in net position 308 3,255 3,490 (475) 3,798 2,780
Net position - beginning of year 30,099 26,844 (215) 260 29,884 27,104
Net position - end of year 30,407$ 30,099$ 3,275$ (215)$ 33,682$ 29,884$
Governmental Business-type
Activities
9
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.
Table 4
Village of North Palm Beach
Cost of services
(In Thousands)
Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 3,819$ (3,368)$ 3,541$ (3,044)$
Public safety 11,260 (10,397)12,103 (11,248)
Public works 5,417 (4,952)5,634 (5,112)
Community development 1,262 694 1,399 325
Leisure services 2,706 (2,311)2,796 (1,094)
Interest on long-term debt 478 (478)521 (521)
24,942$ (20,812)$ 25,994$ (20,694)$
2021 2020
At the end of the current year, as compared to the prior year, the total cost of services decreased by $1.06
million. This decrease is primarily due to the decrease in pension expense for Public Safety.
Business-Type Activities
At the end of the current year, as compared to the prior year, Charges for Services (revenues) for the
Business-type activities increased by $2.13 million and expenses increased by $1.70 million. Net positon
of the Proprietary Fund (Country Club) at September 30, 2021, were $3.27 million. Net position increased
by $3.49 million. This increase is primarily due to the transfer of pool and tennis assets with a net book
value of $3.25 million from the Governmental Activities.
10
FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds
The focus of the Village's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Village's financing
requirements. In particular, unrestricted (unassigned/assigned) fund balance may serve as a useful measure
of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the combined fund balance for all Governmental Funds was $19.17
million, a $2.64 million increase from the 2020 fund balance of $16.53 million. Approximately 82% of the
combined ending fund balance ($15.65 million) constitutes unrestricted (unassigned/assigned) fund
balance, which is available for spending at the government's discretion. The remainder of fund balance
($3.52 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 $13.89 million while the General Fund total fund balance was $16.58
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 64% of that same amount.
The general fund unassigned fund balance ($13.89 million) represents an increase of $2.27 million from
the 2020 unassigned general fund balance of $11.62 million. Key elements of this increase are listed below:
• Revenue for Local Government Half-Cent Sales Tax were budgeted on prior year trends ($0.87
million). For the current year, the Village received $1.10 million;
• Due to discounts from prompt payments, State law requires that only 95% of the gross ad-valorem
taxes be budgeted as revenue ($17.37 million). For the current year, the Village received $17.63
million);
• Revenues for Licenses and Permits were budgeted on prior year trends ($1.10) million. For the
current year, the Village received $1.57 million. This is primarily a result of an increase in Building
Permits; and
The increase in the above-mentioned revenues, savings in personnel costs (as referenced below) and
containment of operating costs were key factors that contributed to the positive impact in the Village’s
General Fund.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were $1,860,783 and can be briefly
summarized as follows:
• Vehicle Leases ($1,700,352)
• Prior Year Open Purchase Order Carryover ($160,431)
11
General Fund Budget Analysis
As shown on pages 89-91 of this report, in the Schedule of Departmental Expenditures – Budget and Actual,
there was an overall favorable budget to actual cost variance of $0.91 million in General Fund Departmental
Expenditures. This is primarily a result of:
• several unfinished projects at fiscal year-end that were carried over into the following fiscal year
($0.48 million); and
• savings in personnel costs ($0.79 million)
o some of the by-products of the COVID-19 pandemic were mandatory facility closures
within the Village as well as cancellations of special events, sports programs and other
recreational activities. In addition, there were fewer vacant positions being filled while
implementing furloughs of part-time employees on a temporary basis. To that end, a
savings in overall personnel costs was realized.
American Rescue Plan Act (ARPA) Fund
The Village’s American Rescue Plan Act (ARPA) Fund is used to account for federal funds received in
accordance with the American Rescue Plan Act. As part of the federal response to the COVID-19
pandemic, the American Rescue Plan Act provides more than $130 billion in direct, flexible aid to local
governments. This influx of dollars provides a unique opportunity for local governments to address
financial issues resulting from the pandemic and strategically invest in the future. The Village anticipates
receiving $6.5 million in federal funding and, in accordance with the program's funding objectives, has
prioritized the need to invest in water quality infrastructure and direct assistance to Village residents who
were negatively affected financially by the pandemic. At the end of the current fiscal year, the Village
received a total of $3.28 million in ARPA Funds.
Infrastructure Surtax Fund
The Village’s Infrastructure Surtax Fund is used to account for surtax proceeds. On November 8, 2016
PBC voters approved a one-cent sales surtax, raising the sales tax from 6% to 7% effective January 1, 2017.
The surtax will sunset on December 31, 2026. The use of surtax proceeds is restricted to, among other
things, the financing, planning and construction of infrastructure. 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 $1.33 million.
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, 2021 and 2020 amounts to $40.15 million and $40.51 million, respectively (net of accumulated
depreciation).
12
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business-type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Land 2,056$ 2,056$ 1,051$ 1,051$ 3,107$ 3,107$
Construction in progress 1,533 664 52 1,585 664
Buildings and improvements 42,765 45,848 11,480 7,751 54,245 53,599
Furniture, fixtures and equipment 9,966 9,826 398 100 10,364 9,926
Total assets 56,320 58,394 12,981 8,902 69,301 67,296
Less accumulated depreciation (22,979) (22,115) (6,170)(4,670)(29,149) (26,785)
Net position 33,341$ 36,279$ 6,811$ 4,232$ 40,152$ 40,511$
Additional information on the Village's capital assets can be found in Note 5 on pages 46 through 47 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 $15.37 million; $14.43 million in the governmental activities
and $0.94 million in business-type activities. None of the Village’s long-term debt comprises debt backed
by the full faith and credit of the government.
Table 6
Village of North Palm Beach
Outstanding Debt
(In Thousands)
Governmental Business-type
Activities Activities Total
2021 2020 2021 2020 2021 2020
Loans payable 11,815$ 12,680$ 936$ 1,285$ 12,751$ 13,965$
Capital leases 2,616 1,176 2,616 1,176
Total 14,431$ 13,856$ 936$ 1,285$ 15,367$ 15,141$
Additional information on the Village's debt can be found in Note 6 on pages 48 through 51 of this report.
13
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
The Village’s Unassigned Fund Balance is viewed by the Administration as a measurement of Village
financial stability. Unassigned general fund balance increased to $13.89 million during the current 2021
fiscal year. The increase is primarily due to the increase in several revenue categories and savings in
personnel costs.
The FY 2021/22 Budget reflects continued improvement to citizen services, public safety, and public
facility maintenance while emphasizing improved community appearance and financial stability. Most
importantly, the budget provides necessary resources for the Village of North Palm Beach to maintain and
further improve services to our residents without increasing the millage rate and without having to use the
General Fund Unassigned Fund Balance. The Village’s operating millage rate was decreased to $7.05 mils.
The Village’s financial plan represents an aggressive approach to adequately maintain infrastructure and
address gaps in the organization in order to deliver services to the community. While the budget allocates
resources to improve the Village’s ability to address service and maintenance demands annually, there are
also significant capital investments to be made that will be unique to the upcoming fiscal year.
Improvement of the dry storage area in Anchorage Park and providing funding to Palm Beach County to
incorporate aesthetic features and pedestrian amenities into their design of the Prosperity Farms Road
Bridge Replacement Project (which will begin in 2022) are unique investments for the upcoming year.
These upcoming investments will result in increased expenditures; however, increasing property valuations
and continued state and national economic growth will blunt the impact of these projects to the annual
financial plan.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with
a general overview of the Village's finances and to show the Village's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Village's Finance Department, at the Village of North Palm Beach, 501 U.S. Highway 1, North Palm Beach,
Florida 33408.
BASIC FINANCIAL STATEMENTS
Statement of Net Position
September 30, 2021
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents 10,620,556$ 378,461$ 10,999,017$
Investments 9,997,713 9,997,713
Accounts receivable 342,438 49,167 391,605
Accrued interest 15,635 15,635
Inventories 138,777 74,106 212,883
Prepaids 263,962 12,743 276,705
Due from other governments 346,680 346,680
Internal balances 1,772,091 (1,772,091)
Capital assets:
Nondepreciable 3,589,023 1,103,077 4,692,100
Depreciable (net of depreciation)29,752,514 5,707,985 35,460,499
Total assets 56,839,389 5,553,448 62,392,837
Deferred outflows of resources
Other postemployement benefits related items 59,118 2,527 61,645
Pension related items 3,373,711 5,198 3,378,909
Total deferred outflows of resources 3,432,829 7,725 3,440,554
Liabilities
Accounts payable 435,906 171,328 607,234
Deposits 46,934 46,934
Accrued liabilities 247,279 247,279
Unearned revenue 3,440,517 964,447 4,404,964
Accrued interest payable 160,179 160,179
Noncurrent liabilities:
Due within one year 2,489,671 399,397 2,889,068
Due in more than one year 19,213,663 639,633 19,853,296
Total liabilities 25,987,215 2,221,739 28,208,954
Deferred inflows of resources
Deferred revenue 203,175 203,175
Other postemployement benefits related items 1,703,492 54,779 1,758,271
Pension related items 1,971,229 9,394 1,980,623
Total deferred inflows of resources 3,877,896 64,173 3,942,069
Net position
Net investment in capital assets 18,910,112 5,874,752 24,784,864
Restricted for:
Recreation 195 195
Infrastructure 1,331,574 1,331,574
Library 24,898 24,898
Other purposes 62,249 62,249
Unrestricted 10,078,079 (2,599,491) 7,478,588
Total net position 30,407,107$ 3,275,261$ 33,682,368$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
See notes to the financial statements.
14
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2021
Charges for
Functions/Programs Expenses Services
Government:
Governmental activities
General government 3,819,733$ 217,227$
Public safety 11,260,437 496,492
Public works 5,416,934 461,166
Community development and planning 1,261,701 1,955,663
Leisure services 2,706,225 375,196
Interest expense 477,717
Total governmental activities 24,942,747 3,505,744
Business-type activities - country club 5,942,293 5,903,220
Total business-type activities 5,942,293 5,903,220
Total government 30,885,040$ 9,408,964$
15
Program Revenues Net (Expense) Revenue and
Operating Capital Changes in Net Position
Grants and Grants and Governmental Business-type
Contributions Contributions Activities Activities Total
234,168$ $ (3,368,338)$ $ (3,368,338)$
351,385 15,200 (10,397,360) (10,397,360)
3,369 (4,952,399) (4,952,399)
693,962 693,962
13,110 6,575 (2,311,344) (2,311,344)
(477,717) (477,717)
602,032 21,775 (20,813,196) (20,813,196)
(39,073)(39,073)
(39,073)(39,073)
602,032$ 21,775$ (20,813,196) (39,073) (20,852,269)
General Revenues:
Taxes:
Property taxes 17,629,392 17,629,392
Local option gas taxes 283,233 283,233
Local option infrastruture surtax 1,011,627 1,011,627
Utility service taxes 2,539,175 2,539,175
Franchise taxes 1,354,110 1,354,110
Sales and use taxes 1,548,330 1,548,330
Investment income - unrestricted 81,338 134 81,472
Miscellaneous 181,109 181,109
Gain on disposal of equipment 21,384 21,384
Transfers (3,528,697) 3,528,697
Total general revenues 21,121,001 3,528,831 24,649,832
Change in net position 307,805 3,489,758 3,797,563
Net position, beginning of year 30,099,302 (214,497) 29,884,805
Net position, end of year 30,407,107$ 3,275,261$ 33,682,368$
See notes to the financial statements.
16
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2021
Infrastructure ARPA Nonmajor Total
Surtax Grant Governmental Governmental
General Fund Fund Funds Funds
Assets
Cash and cash equivalents 4,799,892$ 1,312,979$ 3,288,788$ 1,218,897$ 10,620,556$
Investments 9,997,713 9,997,713
Accounts receivable 342,438 342,438
Accrued interest 15,635 15,635
Inventories 138,777 138,777
Prepaids 263,962 263,962
Due from other funds 72,091 72,091
Advances to other funds 1,700,000 1,700,000
Due from other governments 241,036 105,644 346,680
Total assets 17,499,453$ 1,418,623$ 3,288,788$ 1,290,988$ 23,497,852$
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable 319,115$ 87,049$ $ 29,742$ 435,906$
Accrued liabilities 247,279 247,279
Unearned revenue 153,164 3,287,353 3,440,517
Total liabilities 719,558 87,049 3,287,353 29,742 4,123,702
Deferred inflows of resources
Deferred revenue 203,175 203,175
Total deferred inflows of resources 203,175 203,175
Fund balances
Nonspendable:
Inventories and prepaids 402,739 402,739
Advances to other funds 1,700,000 1,700,000
Restricted for:
Recreation 195 195
Infrastructure 1,331,574 1,331,574
Streets and roads 54,152 54,152
Police 5,324 5,324
Library 24,898 24,898
Other purposes 2,773 2,773
Assigned for:
Small business grants 16,435 16,435
Subsequent year's expenditures 477,728 477,728
Special revenue funds 1,435 250,565 252,000
Capital project funds 1,010,681 1,010,681
Unassigned 13,892,476 13,892,476
Total fund balances 16,576,720 1,331,574 1,435 1,261,246 19,170,975
Total liabilities, deferred inflows of
resources, and fund balances 17,499,453$ 1,418,623$ 3,288,788$ 1,290,988$ 23,497,852$
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, 2021
Fund balances - total governmental funds 19,170,975$
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 56,320,265$
Less: accumulated depreciation (22,978,728)
33,341,537
Accrued interest payable (160,179)
Retainage payable
Revenue notes (11,815,000)
Capital leases (2,616,425)
Net pension liability (4,963,769)
Other postemployement benefits (846,364)
Accrued compensated absences (1,461,776)
(21,863,513)
Other postemployement benefits deferred outflows 59,118
Other postemployement benefits deferred inflows (1,703,492)
Pension related deferred outflows 3,373,711
Pension related deferred inflows (1,971,229)
(241,892)
Net position of governmental activities 30,407,107$
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:
Deferred outflows and inflows of resources related to pensions are
applicable to future periods and, therefore, are not reported in the
govenmental funds:
See notes to the financial statements.
18
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2021
Infrastructure ARPA Nonmajor Total
Surtax Grant Governmental Governmental
General Fund Fund Funds Funds
Revenues
Taxes 21,805,910$ $ $ $ 21,805,910$
Licenses and permits 1,574,639 1,574,639
Intergovernmental 1,826,787 1,011,627 350,777 3,189,191
Charges for services 1,726,853 1,726,853
Fines and forfeitures 154,410 154,410
Investment 70,892 9,011 1,435 81,338
Miscellaneous 296,245 296,245
Total revenues 27,455,736 1,020,638 1,435 350,777 28,828,586
Expenditures
Current
General government 3,507,052 3,507,052
Public safety 10,502,065 351,540 10,853,605
Public works 5,117,986 5,117,986
Community development and planning 1,292,216 1,292,216
Leisure services 1,695,054 1,695,054
Capital outlay 2,154,869 711,103 662,800 3,528,772
Debt service
Principal 1,106,148 1,106,148
Interest 491,022 491,022
Total expenditures 25,866,412 711,103 1,014,340 27,591,855
Excess (deficiency) of revenues
over (under) expenditures 1,589,324 309,535 1,435 (663,563) 1,236,731
Other financing sources (uses)
Capital lease proceeds 1,682,018 1,682,018
Transfers in 115,280 510,000 625,280
Transfers out (899,280) (899,280)
Total other financing sources (uses)782,738 115,280 510,000 1,408,018
Net change in fund balances 2,372,062 424,815 1,435 (153,563) 2,644,749
Fund balances
Beginning of year 14,204,658 906,759 1,414,809 16,526,226
End of year 16,576,720$ 1,331,574$ 1,435$ 1,261,246$ 19,170,975$
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, 2021
Net change in fund balances - total governmental funds 2,644,749$
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 3,138,544$
Donated assets 15,200
Assets transferred to Country Club (3,254,697)
Less: current year depreciation (2,313,606)
Net book value for retired assets (64,537) (2,479,096)
The issuance of long-term debt provides current financial resources to
governmental funds, while the repayment of long-term debt consumes the
current financial resources of governmental funds. Neither transaction,
however, has any affect on net assets of governmental activities:
Capital lease proceeds (1,682,018)
Principal payments on debt 1,106,148 (575,870)
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 accrued interest payable 13,305
Change in long-term compensated absences 103,578
Change in net pension liability and related deferred amounts 299,589
Change in other postemployment benefits and deferred amounts 301,550
718,022
Change in net position 307,805$
See notes to the financial statements.
20
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
Proprietary Fund
September 30, 2021
Enterprise
Assets
Current assets
Cash and cash equivalents 378,461$
Accounts receivable 49,167
Inventories 74,106
Prepaids 12,743
Total current assets 514,477
Non-current assets
Capital assets, net 6,811,062
Total non-current assets 6,811,062
Total assets 7,325,539
Deferred outflows of resources
Other postemployement benefits related items 2,527
Pension related items 5,198
Total deferred outflows of resources 7,725
Liabilities
Current liabilities
Accounts payable 171,328
Deposits 46,934
Unearned revenue 964,447
Due to other funds 72,091
Compensated absences - current portion 36,493
Loans payable - current portion 362,904
Total current liabilities 1,654,197
Non-current liabilities
Other postemployement benefits 36,185
Compensated absences 18,335
Net pension liability 11,707
Advances from other funds 1,700,000
Loans payable 573,406
Total non-current liabilities 2,339,633
Total liabilities 3,993,830
Deferred inflows of resources
Other postemployement benefits related items 54,779
Pension related items 9,394
Total deferred inflows of resources 64,173
Net position
Net investment in capital assets 5,874,752
Unrestricted (2,599,491)
Total net position 3,275,261$
See notes to the financial statements.
21
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended September 30, 2021
Enterprise
Operating revenue
Greens fee/cart rentals/golf membership fees 3,690,098$
Golf shop revenues 437,185
Driving range revenues 509,455
Restaurant revenues 315,332
Tennis revenues 699,117
Pool revenues 180,030
Miscellaneous 72,003
Total operating revenues 5,903,220
Operating expenses
Golf course maintenance expenses 1,794,711
Clubhouse grounds expenses 459,047
Golf shop expenses 1,450,234
Food and beverage expenses 13,659
Tennis expenses 604,512
Pool expenses 313,686
Administrative and general 364,208
Depreciation and amortization 855,838
Total operating expenses 5,855,895
Operating income (loss)47,325
Nonoperating revenues (expenses)
Interest revenue 134
Loss on disposal of equipment (1,067)
Interest expense (85,331)
Total nonoperating revenues (expenses)(86,264)
Transfers in 3,528,697
Change in net position 3,489,758
Net position - beginning (214,497)
Net position - ending 3,275,261$
See notes to the financial statements.
22
Cash flows from operating activities:
Receipts from customers 6,156,408$
Payments to suppliers for goods or services (3,969,644)
Payments to employees for services (961,642)
Net cash Provided by operating activities 1,225,122
Cash flows from non-capital financing activities:
Transfers in 274,000
Payments to other funds (507,250)
Net cash provided by non-capital financing activities:(233,250)
Cash flows from capital and related financing activities:
Principal paid on long term debt (348,358)
Interest paid on debt (85,331)
Acquisition of capital assets (181,361)
Net cash provided (used) by capital and related financing activities (615,050)
Cash flows from investing activities:
Interest and dividends on investments 134
Net increase (decrease) in cash and cash equivalents 376,956
Cash and cash equivalents at beginning of year 1,505
Cash and cash equivalents at end of year 378,461$
Reconciliation of operating income
to net cash provided by operating activities:
Operating income (loss)47,325$
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and amortization 855,838
Change in OPEB liability and related deferred amounts 14,012
Change in pension deferred amounts 21,483
Change in assets and liabilities
Increase in accounts receivable (16,819)
Increase in inventory (5,644)
Increase in prepaids (12,694)
Increase in accounts payable 39,419
Decrease in deposits (864)
Increase in compensated absences payable 12,195
Increase in deferred revenue 270,871
Total adjustments 1,177,797
Net cash provided by operating activities 1,225,122$
Noncash investing, capital and financing activiites
Transfer of capital assets from the Governmental Activities 3,254,697$
For the Year Ended September 30, 2021
Proprietary Fund
Statement of Cash Flows
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
See notes to the financial statements.
23
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2021
Employee
Retirement Custodial
Funds Funds
Assets
Cash and cash equivalents 582,709$ 366,005$
Investments:
Domestic common equity securities 18,596,377
International common equity securities 3,608,356
U.S. Government and agencies 4,563,802
Municipal bonds 478,775
Domestic corporate bonds 3,115,749
International corporate bonds 275,218
Fixed income exchange traded funds 2,552,819
Equity exchange traded funds 676,812
Fixed income mutual funds 4,793,412
Domestic equity mutual funds 10,212,616
International equity mutual funds 1,997,705
Real estate investment fund 3,052,366
Money market mutual funds 648,615
Accrued interest and dividends 45,144
Prepaids 5,399
Total assets 55,205,874 366,005
Liabilities
Accounts payable 63,245 42,251
Accounts payable, broker-dealers 122,418
Total liabilities 185,663 42,251
Net position
Restricted for pensions 55,020,211
Restricted for individuals, organizations,
and other governments 323,754
55,020,211$ 323,754$
See notes to the financial statements.
24
Employee
Retirement Custodial
Funds Funds
Additions
Contributions
Employer 952,460$ $
Plan members 441,928
DROP contributions 21,235
State on-behalf payments 350,777
Total contributions 1,766,400
Investment earnings
Dividends and interest 987,916 3,211
Net increase in fair value
of investments 7,967,120
Total investment earnings 8,955,036 3,211
Less: investment expenses 211,730
Total net investment earnings 8,743,306 3,211
Total additions 10,509,706 3,211
Deductions
Administrative expense 162,223
Refund of contributions 12,698 68,767
Benefits 1,612,957
Total deductions 1,787,878 68,767
Change in net position 8,721,828 (65,556)
Net position - beginning 46,298,383 389,310
Net position - ending 55,020,211$ 323,754$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended September 30, 2021
See notes to the financial statements.
25
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
26
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 Village’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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
27
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 of Accounting 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 the economic resources 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 90 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.
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
The Village reports the following major governmental funds:
General Fund
The general fund is the primary operating fund and is used to account for all financial resources
applicable to the general operations of the Village except those required to be accounted for in
another fund.
Infrastructure Surtax Fund
The Infrastructure Surtax Fund is a special revenue fund used to account for the surtax proceeds
which are restricted to, among other things, the financing, planning and construction of
infrastructure.
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 are fiduciary funds that 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Custodial Funds
The Custodial Funds account for assets that are held for individuals, organizations and other
governments, that cannot be used to finance the Village’s own programs, and are not required to
be reported in another fiduciary fund type. The two custodial 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 for the protection of manatees through the
enforcement of boat speed zones on the intracoastal and inland waterways.
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, investments with Florida Prime managed by the State of Florida, State Board of
Administration and Florida Public Assets for Liquidly Management (FL Palm) sponsored by
Florida School Boards Association and the Florida Association of District School
Superintendents
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Accounts Receivable
Accounts receivable of the General Fund consists of billed and unbilled receivables.
Concentration of Credit Risk
The Village performs ongoing credit evaluations of its customers and does not require collateral.
The Village maintains an allowance for uncollectible accounts at a level which management
believes is sufficient to cover potential credit losses.
Investments
Investments are reported at fair value 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 first-in, first-out basis (FIFO). 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
31
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. Donated
capital assets, donated works of art and similar items, and capital assets received in a service
concession arrangement are recorded at acquisition value.
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.
Additions, improvements, and other capital outlay that significantly extend the useful life of an
asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation has been provided over the estimated useful lives using the straight-line method of
depreciation. The estimated lives for each major class of depreciable capital assets are as
follows:
Buildings, improvements and infrastructure 5-30 years
Golf course improvements 5-30 years
Machinery and Equipment 3-15 years
Vehicles 3-20 years
Deferred Outflows and Inflows of Resources
The statement of net position includes a separate section for deferred outflows of resources. This
represents the usage of net position applicable to future periods and will not be recognized as
expenditures until the future period to which it applies.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
32
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Deferred Outflows and Inflows of Resources (Continued)
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
Village also reports deferred OPEB items in connection to Other Post-Employment Benefits,
which are amortized in a systemic and rational method and recognized as an 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 three 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. The third is deferred OPEB items in connection to Other Post-
Employment Benefits. These items are amortized in a systemic and rational method and
recognized as a reduction of 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
33
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Net Position
Equity in the government-wide statement of net position and the proprietary fund is displayed in
three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Invested in
capital assets, net of related debt consists of capital assets reduced by accumulated depreciation
and by any outstanding debt incurred to acquire, construct, or improve those assets. Restricted
net position is reported when there are legal limitations imposed on their use by Village
legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net
position consists of all net position that does not meet the definition of either of the other two
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
34
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 of 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
35
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Data
Except for budgeting capital expenditures and not budgeting for depreciation, the annual
appropriated budgets for the Enterprise Funds are adopted on a basis consistent with generally
accepted accounting principles. For budgeting purposes, current year encumbrances are not
treated as expenditures.
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.
• 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 $477,728, the Infrastructure Surtax
fund had $732,582 and the Capital Projects Fund had $424,460 in outstanding encumbrances at
year-end.
B. Property Taxes
Under Florida law, the assessment of all properties and the collection of all county, municipal,
and school board property taxes are consolidated in the offices of the County Property Appraiser
and the County Tax Collector. All property is reassessed according to its fair market value on
January 1 of each year and each assessment roll is submitted to the State Department of Revenue
for review to determine if the assessment rolls meet all of the appropriate requirements of State
law.
The laws of the State regulating tax assessment are also designed to assure a consistent property
valuation method statewide. State Statutes permit municipalities to levy property taxes at a rate
of up to 10 mills. The tax levy of the Village is established by the Council prior to October 1st of
each year during the budget process.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
36
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, 2021, was 7.5000
($7.5000 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, 2021, unpaid delinquent
taxes are not material and have not been recorded by the Village.
NOTE 3 – DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2021, the carrying amount of the Village’s deposits (including fiduciary
funds) was $4,307,882 and the bank balances totaled $4,532,428. In addition to insurance
provided by the Federal Depository Insurance Corporation, deposits are held in banking
institutions approved by the State Treasurer of the State of Florida to hold public funds. Under
Florida Statutes Chapter 280, Florida Security for Public Deposits Act, the State Treasurer
requires all Florida qualified public depositories to deposit with the Treasurer or other banking
institution eligible collateral. In the event of failure of a qualified public depository, the
remaining public depositories would be responsible for covering any resulting losses. The
Village’s deposits at year end are considered insured for custodial credit risk purposes.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
37
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
A reconciliation of deposit and investments as shown on the statement of net position and
statement of fiduciary net position for the Village is as follows:
By Category:
Deposits $ 4,307,882
Petty cash 4,156
Investments 72,206,028
Total deposits and investments $76,518,066
Presented in the statement of net position
Governmental activities
Cash and cash equivalents $10,620,556
Investments 9,997,713
Business-type activities
Cash and cash equivalents 378,461
Total statements of net position 20,996,730
Presented in the statement of fiduciary net
position
Pension trust funds
Cash and cash equivalents 582,709
Investments 54,572,622
Custodial funds
Cash and cash equivalents 366,005
Total fiduciary funds 55,521,336
Total deposits and investments $76,518,066
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
38
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments
The Village categorizes its investments according to the fair value hierarchy established GASB
Statement No. 72, Fair Value Measurement and Application. 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.
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 Florida Public Assets for Liquidity Management (FL Palm) and Florida PRIME are external
investment pools which meet the requirements with GASB Statement No. 79, Certain External
Investment Pools and Pool Participants, which allows reporting the investments at amortized
cost. For both funds as of September 30, 2021, 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. However, the Trustees of the funds can suspend the right of
withdrawal or postpone the date of payment if the Trustees determine that there is an emergency
that makes the sale of a Portfolio’s securities or determination of its net asset value not
reasonably practical.
Money market mutual funds, FL Palm 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 VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
39
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
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.
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
40
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
As of September 30, 2021, the Village held the following investments:
Weighted Fair Value Measurement
Average
Maturity Fair Value Level 1 Level 2
Governmental Funds
U.S. Government and Agency 2.29 Years $ 3,017,822 $ $ 3,017,822
MBS &ABS 1.71 Years 3,752,434 3,752,434
Municipal Bonds 1.08 Years 210,740 210,740
Domestic Corporate Bonds 2.03 Years 1,628,411 1,628,411
International Corporate Bonds 1.81 Years 1,362,585 1,362,585
Fiduciary Funds
U.S. Government and Agency 18.48 Years 165,045 165,045
MBS &ABS 16.96 Years 4,398,757 4,398,757
Municipal Bonds 17.41 Years 478,775 478,775
Domestic Corporate Bonds 9.82 Years 3,115,749 3,115,749
International Corporate Bonds 9.52 Years 275,218 275,218
Domestic Common Equity
Securities N/A 18,596,377 18,596,377
International Common Equity
Securities N/A 3,608,356 3,608,356
Fixed Income ETF N/A 2,552,819 2,552,819
Equity ETF N/A 676,812 676,812
Fixed Income Mutual Funds N/A 4,793,412 4,793,412
Domestic Equity Mutual Funds N/A 10,212,616 10,212,616
International Equity Mutual
Funds N/A 1,997,705 1,997,705
60,843,633 $ 42,438,097 $ 18,405,536
Investments Reported at NAV
Fiduciary Funds
American Core Realty Fund N/A 3,052,366
Investments Reported at
Amortized Cost:
Governmental Funds
Money Market Mutual Funds N/A 25,721
Florida Prime 49 Days 3,602,959
FL Palm 53 Days 3,696,740
Fiduciary Funds
Money Market Mutual Funds N/A 984,609
Total Investments $ 72,206,028
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
41
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.
S&P Moody’s Fair
Investments: Rating Rating Value
Governmental Funds
U.S. Government and Agency AA+ AAAa $ 3,017,822
MBS &ABS AAA, AA+ & NR AAA, Aaa & NR 3,752,434
Municipal Bonds AA+, AA & A+ Aa3 & A1 210,740
Domestic Corporate Bonds AA+ to BBB+ AA3, AA2,A1 & NR 1,628,411
International Corporate
Bonds
AAA to A- Aaa to A2
1,362,585
Money Market Mutual Funds NR NR 25,721
Florida Prime AAAm NR 3,602,959
FL Palm AAAm NR 3,696,740
Fiduciary Funds
U.S. Government and Agency AA+ Aaa 165,045
MBS &ABS AAA to NR Aaa to NR 4,398,757
Municipal Bonds AAA to A- Aaa to A1 478,775
Domestic Corporate Bonds AAA to BBB- Aaa to Baa3 3,115,749
International Corporate
Bonds
AA- to BBB- Aaa to Baa2
275,218
Common Equity Securities NR NR 22,204,733
Exchange Traded Funds NR NR 3,229,631
Mutual Funds NR NR 17,003,733
American Core Realty Fund NR NR 3,052,366
Money Market Mutual Funds NR NR 984,609
Total Investments $ 72,206,028
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 VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
42
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
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.
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
43
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
44
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
The Village General Employees’ Retirement Fund is authorized to invest its funds as follows:
1. Interest-bearing time deposits in qualified public depositories, as defined in Chapter 280,
Florida Statutes;
2. The Local Government Surplus Funds Trust Fund or any intergovernmental investment
pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in
Chapter 163, Florida Statutes;
3. Securities and Exchange Commission registered money market funds with the highest
credit quality rating from a nationally recognized rating agency minimum credit quality
rating of A-1 from S&P or P-1 from Moody’s;
4. Obligations issued by the U.S. Government or obligations guaranteed by agencies or
instrumentalities of the U.S. Government;
5. Foreign Securities, including convertible bonds, convertible preferred issues and
preferred stock;
6. Equities, including publicly traded REITS, commodities, convertible bonds, convertible
preferred issues and preferred stock. Foreign security convertibles are limited to those
that settle in U.S. dollars and are traded on one or more of the nationally recognized
national exchanges;
7. Bonds or any other evidence of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States, any state or organized territory of the
United States, or the District of Columbia, provided the issues are traded on any one (1)
or more of the recognized national stock exchanges or over the counter and holds a
minimum credit rating of BBB from S&P or Baa from Moody’s, except that up to 20% of
the fixed income portfolio may be held in securities that do not meet this criteria. The
weighted average quality rating of the portfolio will be A or better and the effective
duration of the portfolio shall be kept within 20% of Barclays Aggregate Index;
8. Comingled stock, bond or money market funds;
9. Securities of, or interest in, any open-end or closed-end management-type investment
company or investment trust registered under the Investment Company Act of 1940, 15
U.S.C. sections 80a-1 et seq., as amended from time to time, provided that the portfolio
of such investment company or investment trust is limited to obligations of the United
States Government or any agency or instrumentality thereof and to repurchase
agreements fully collateralized by such United States Government obligations, and
provided that such investment company or investment trust takes delivery of such
collateral either directly or through an authorized custodian;
10. Other investments authorized by law or by ordinance by the Village.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
45
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 A1 or Moody’s P1 credit rating;
7. Bonds issued by the State of Israel;
8. Purchases in commingled real estate funds.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
46
NOTE 4 – RECEIVABLES
Receivables at September 30, 2021, were as follows:
General
Fund
Country
Club
Utility franchise fees & taxes $ 328,042 $
Conroy Drive assessment 621
Other accounts receivable 13,775 49,167
Total accounts receivable $ 342,438 $ 49,167
NOTE 5 – CAPITAL ASSETS
Capital Assets activity for the year ended September 30, 2021, was as follows:
Primary Government
Governmental Activities:
Beginning
Balance Additions Deletions
Ending
Balance
Capital assets not being
depreciated:
Land $ 2,055,889 $ $ $ 2,055,889
Construction in progress 663,490 1,143,503 (273,859) 1,533,134
Capital assets being
depreciated:
Buildings 26,311,437 (1,008,964) 25,302,473
Improvements 19,537,160 622,030 (2,696,120) 17,463,070
Machinery and equipment 3,980,166 284,749 (402,293) 3,862,622
Vehicles 5,845,552 919,279 (661,754) 6,103,077
Total at historical cost: 58,393,694 2,969,561 (5,042,990) 56,320,265
Less accumulated depreciation:
Buildings (6,710,222) (700,206) 11,601 (7,398,827)
Improvements (10,343,906) (576,601) 585,645 (10,334,862)
Machinery and equipment (1,827,061) (392,290) 254,469 (1,964,882)
Vehicles (3,233,830) (644,509) 598,182 (3,280,157)
Total accumulated
depreciation (22,115,019) (2,313,606) 1,449,897 (22,978,728)
Governmental activities
capital assets, net $ 36,278,675 $ 655,955 $(3,593,093) $ 33,341,537
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
47
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 93,950
Public safety 656,009
Public works 443,649
Community development 34,869
Leisure services 1,085,129
Total depreciation expense, governmental activities $ 2,313,606
Business-type activities:
Beginning
Balance Additions Deletions
Ending
Balance
Capital assets not being
depreciated:
Land $ 1,051,311 $ $ $ 1,051,311
Construction in progress 51,766 51,766
Capital assets being
depreciated:
Buildings 136,862 1,005,549 1,142,411
Improvements 7,614,183 2,723,361 10,337,544
Machinery and equipment 75,791 343,583 (44,830) 374,544
Vehicles 23,619 23,619
Total at historical cost: 8,901,766 4,124,259 (44,830) 12,981,195
Less accumulated depreciation:
Buildings (136,862) (48,214) (185,076)
Improvements (4,485,270) (1,345,669) (5,830,939)
Machinery and equipment (24,106) (150,156) 43,763 (130,499)
Vehicles (23,619) (23,619)
Total accumulated
depreciation (4,669,857) (1,544,039) 43,763
(6,170,133)
Business-type activities
capital assets, net $ 4,231,909 $ 2,580,220 $ (1,067)
$ 6,811,062
The Governmental Activities transferred Tennis and Pool assets with a net book value of
$3,254,697 to the Business-type activities.
The General Fund is currently maintaining the Country Club building which is also capitalized in
the Governmental Activities. The Village believes this building serves the community as a
whole in addition to supporting the golf course activities. Once the 2006 promissory note of the
country club enterprise fund is paid, rental payments for the use of the building will be started.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
48
NOTE 6 – LONG TERM LIABILITIES
Change in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2021, was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Amount
Due
Within
One Year
Governmental activities:
Direct borrowings and
direct placements
Loans payable $ 12,680,000 $ $ (865,000) $ 11,815,000 $ 900,000
Capital leases 1,175,555 1,682,018 (241,148) 2,616,425 378,543
Total 13,855,555 1,682,018 (1,106,148) 14,431,425 1,278,543
OPEB (see Note 13) 778,074 68,290 846,364
Net pension liability
(see Note 8) 5,460,976 186,778 (683,985) 4,963,769
Compensated absences
payable 1,565,354 1,172,683 (1,276,261) 1,461,776 1,211,128
Total $ 21,659,959 $ 3,109,769 $(3,066,394) $ 21,703,334 $ 2,489,671
Business-type activities:
Direct borrowings and
direct placements
Loans payable $ 1,284,668 $ $ (348,358) $ 936,310 $ 362,904
OPEB (see Note 13) 25,721 10,464 36,185
Net pension liability
(see Note 8) 11,707 11,707
Compensated absences
payable 42,633 40,673 (28,478) 54,828 36,493
Total $ 1,353,022 $ 62,844 $ (376,836) $ 1,039,030 $ 399,397
Governmental activities other postemployment benefit obligations, compensated absences and
net pension liabilities are expected to be paid out of the general fund.
Loans Payable from Direct Borrowings and Direct Placements
$4,893,673 Promissory Note
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 VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
49
NOTE 6 – LONG TERM LIABILITIES (Continued)
$4,893,673 Promissory Notes (Continued)
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, 2021, the principal amount outstanding was $936,310
and was for the purpose of business-type activities.
Annual debt service requirements to maturity are as follows:
Business-type activities:
Year Ending Principal Interest Total
2022 $ 362,904 $ 35,255 $ 398,159
2023 378,185 19,974 398,159
2024 195,221 4,074 199,295
$ 936,310 $ 59,303 $ 995,613
The loan agreement requires that pledged revenues cover 100% of the debt service due plus the
expenses, other than non-cash expenses, of owning and operating the Country Club.
The loan agreement includes a provision that upon the occurrence of any event of default, the
bank may declare all obligations of the Village under the Loan Agreement and the Note to be
immediately due and payable without further action of any kind and upon such declaration the
Note and the interest accrued thereon shall become immediately due and payable.
Non-Ad Valorem Revenue Notes, Series 2017
The Village Council adopted Resolution No. 2017-22 authorizing the issuance of Non-Ad
Valorem Revenue Notes, Series 2017, in one or more Series in the aggregate Principal amount
not to exceed $15,000,000 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.
Series 2017A
The Series 2017A is a tax-exempt issuance for $8,900,000 with an interest rate of 3.19%, which
is subject to adjustment in the event of taxability of the interest on this note. 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
50
NOTE 6 – LONG TERM LIABILITIES (Continued)
Non-Ad Valorem Revenue Note, Series 2017 (Continued)
This note may be prepaid in whole but not in part at any time after June 1, 2025, at a redemption
price equal to 100% of the principal amount outstanding plus accrued interest through the
redemption date. As of September 30, 2021, the principal amount outstanding was $8,900,000
and was for the purpose of governmental-type activities.
Series 2017B
The Series 2017B is a taxable issuance for $6,100,000 with an interest rate of 3.78%. Interest is
payable on June 1 and December 1 of each year beginning December 1, 2017. Principal
payments start June 1, 2018 with the final payment on June 1, 2025. This note may not be
prepaid. As of September 30, 2021, the principal amount outstanding was $2,915,000 and was
for the purpose of governmental-type activities.
Annual debt service requirements to maturity for the Series 2017A and 2017B are as follows:
Year Ending Principal Interest Total
2022 $ 900,000 $ 394,097 $ 1,294,097
2023 935,000 359,981 1,294,981
2024 970,000 324,734 1,294,734
2025 1,005,000 288,068 1,293,068
2026 1,040,000 255,360 1,295,360
2027 - 2031 5,710,000 758,264 6,468,264
2032 1,255,000 40,035 1,295,035
$ 11,815,000 $ 2,420,539 $ 14,235,539
The loan agreements include a provision that upon the occurrence of any event of default, the
notes shall bear interest at the Default Rate so long as the event of default shall be continuing.
The Default rate for the Series 2017A is 6% and the rate for the Series 2017B is 7%.
Governmental Activities Capital Leases
The Village entered into capital lease agreements for the purpose of financing the purchase of
vehicles. Principal and interest payments are due annually. As of September 30, 2021, the
principal amounts outstanding were $2,616,425 and the net book value of the equipment was
$2,668,686. Amortization of leased equipment under capital assets is included with depreciation
expense. The interest rates on the leases range from 2.25% to 7.25%.
The lease agreements include a provision that upon the occurrence of any event of default, the
lessor may retake possession of the equipment under lease.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
51
NOTE 6 – LONG TERM LIABILITIES (Continued)
Governmental Activities Capital Leases (Continued)
Annual debt service requirements to maturity are as follows:
Year Ending Principal Interest Total
2022 $ 378,543 $ 82,406 $ 460,949
2023 397,566 63,384 460,950
2024 333,234 49,507 382,741
2025 342,240 40,500 382,740
2026 276,435 31,277 307,712
2027 - 2031 888,407 48,249 936,656
$ 2,616,425 $ 315,323 $ 2,931,748
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
52
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, 2021, 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 are a legal
resident of the Village and appointed by the Village council, the two (2) council appointed
members of the Board shall appoint a member of the general public who has never been
employed by the Village to serve as the fifth member of the Board. Each plan’s assets may only
be used for the payment of benefits to the members and beneficiaries of the plan in accordance
with the terms of each plan document. The costs of administering each plan are financed in the
appropriate pension trust fund.
SUMMARY OF SIGNIFICANT ACCOUNTING 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
53
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
PLAN DESCRIPTION, INVESTMENT AND CONTRIBUTION INFORMATION
The following schedule is provided for general information purposes only and is derived from
the respective actuarial reports and Village information for the two retirement plans. Plan
participants should refer to the appropriate source documents for more complete information on
the plans.
General Employees’ Fire and Police
Plan Description:
Authority Village Ordinance Village Ordinance/State
Asset Valuation:
Reporting Fair Value Fair Value
Legal Reserves None None
Long-Term Receivable None None
Internal/Participant Loans None None
Membership of each plan consisted of the following at October 1, 2020:
GERF F&P
Inactive Plan Members or Beneficiaries
currently receiving benefits 40 31
Inactive Plan Members entitled to but
not yet receiving benefits 37 15
Active Plan Members 26 51
Total 103 97
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
54
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
All benefits vest based on the following years of credited service:
Years of
Credited Service Vested %
Under 5 0%
5 or 6 50%
7 or 8 75%
9 or more 100%
Employees become eligible for normal retirement benefits after attaining the age of 60 and
completing nine years of credited service, or attaining the age of 65 (depending on employee
contribution rate). The normal retirement benefit consists of a life annuity, options available,
(subject to cost of living increases not to exceed 3% a year), of either 2%, 2.25%, or 2.5%
(depending on employee contribution rate) of Average Monthly Earnings (AME) times credited
service up to 20 years plus 1% of AME times credited service over 20 years. Early retirement
benefits can be received at age 55. The benefit is determined as for normal retirement and
payable at normal retirement date or payable immediately after reduction by 5% for each year by
which the benefit commencement date precedes the normal retirement date. If an active member
dies, his beneficiary receives a refund of member contributions without interest. For a member
who is age 55 and has at least five years of service but who dies before commencement of
retirement benefits, a monthly benefit is payable to the designated beneficiary; the benefit is
calculated as though the member had retired on his date of death and payable according to the
option elected by the employee. For an active member who has at least five years of credited
service and dies prior to reaching normal retirement date, a benefit equal to his vested accrued
benefit will be paid to his beneficiary for ten years.
If an employee terminates his employment, he is entitled to the following:
- With less than five years of credited service, a refund of member contributions
without interest and no other benefit.
- With five or more years of credited service, a refund of member contributions, the
vested accrued benefit payable at normal retirement date or at any time after age 55
is attained, with the benefit being subject to the same reduction as for early
retirement benefits. The vesting schedule is listed above.
"Average Monthly Earnings" is the average during the 5 years within the last 10 years of
employment which produces the highest average.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
55
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
"Credited Service" consists of the total number of years and fractional parts of years of actual
service with the Village and shall apply to an employee whose employment is terminated with
the Village and who recommences fulltime employment within two years from the date of
termination.
Asset Allocation. The plan’s adopted asset allocation policy as of September 30, 2021, 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, 2021, the annual money-weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 17.85 percent.
The money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
Contributions. General employees may contribute 6%, 4%, 2% or 0% of earnings as elected by
the employee, with the retirement benefit received being based on the amount contributed. The
Village is required to contribute the amount necessary to fund the Plan properly according to the
Plan’s actuary. Contribution requirements of plan members and the Village are established and
may be amended by the Village Council.
Fire and Police Retirement System
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2019-11. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code. The plan provides retirement benefits as well as death
and disability benefits. All benefits vest after ten years of credited service. All fulltime police
officers or firefighters are eligible for membership immediately upon hire. Previously, members
were not eligible until October 1st following completion of 12 months of employment. Cost of
living adjustments (COLA) are provided annually each October 1, to reflect changes in CPI
(subject to maximum increases or decreases of 3% per year). Authority to establish and amend
the benefit provisions of the plan rests with the Village Council. Employees become eligible for
normal retirement benefits after attaining the age of 55, or the date on which the member attains
age 52 and 25 credited years of service.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
56
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
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 2.75% of AME
times the years of credited services starting 10/1/18; for years prior to 10/1/18 the percentage is
2.5%; with a maximum benefit of 75% of AME. For firefighter members the maximum benefit
will increase to 80% effective 10/1/22. 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 and the
Deferred Retirement Option Plan (DROP) as describe below.
The Plan contains a DROP whereupon the member could retire from the pension plan but
continue employment with the Village for an additional maximum period of up to five years. The
retirement benefit is immediately calculated and the monthly benefit is allocated to the DROP
account. The actual rate of investment return is credited to the account, but no less than 0.00% or
more than 6.4%. Once a participant elects this option, he is no longer eligible for disability or
pre-retirement benefits. The Plan’s guidelines for the DROP are designed to adhere to IRS
regulations. At September 30, 2021, there was $190,575 in the DROP, this amount is included
in both the Total Pension Liability and the Plan Fiduciary Net Position. Additional information
about the DROP can be obtained from the ordinance.
Asset Allocation. The plan’s adopted asset allocation policy as of September 30, 2021, is as
follows:
Asset Class Target Allocation
Domestic equity 55%
International equity 10
Domestic bonds 25
Real estate 10
Total 100%
Rate of Return. For the year ended September 30, 2021, the annual money-weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 19.69 percent.
The money-weighted rate of return expresses investment performance, net of investment
expense, adjusted for the changing amounts actually invested.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
57
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Contributions. Firefighter members are required to contribute 7.00% of their basic compensation
to the plan. This will be increased to 7.5% effective 10/1/22, 8% effective 10/1/23 and 8.5%
effective 10/1/24. Police Officer members are required to contribute 7.00% of their basic
compensation to the plan. Members enrolled in the DROP shall contribute 4% of earnings (3%
allocated to the DROP account and 1% remaining in Plan assets). 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 $350,777 during the fiscal year ended September 30, 2021.
All Retirement Plans
Net Pension Liability. The components of net pension liability of the Village on September 30,
2021, were as follows:
General
Employees
Fire and
Police
Total pension liability $ 18,787,481 $ 34,104,753
Plan fiduciary net position (20,540,857) (34,479,354)
Village's net pension liability(asset) $ (1,753,376) $ (374,601)
Plan fiduciary net position as a
percentage of total pension liability 109.33% 101.10%
The mortality tables, the assumed rates of retirement, withdrawal rate, salary increases, and cost
of living adjustments were all updated and the investment return assumption was reduced from
6.75% to 6.25% which decreased the pension liability of the General Employees plan by
$283,447.
The investment return assumption was reduced from 7.70% to 7.45% along with changes to the
salary increase rates, normal retirement rates and the assumed rates of withdrawal, which
increased the pension liability of the Fire and Police plan by $464,035.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
58
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as
of October 1, 2020 updated to September 30, 2021 using the following actuarial assumptions
applied to the September 30, 2021 measurement period.
General Employees Fire and Police
Inflation 2.40% 2.50%
Salary increases Service based Service based
Investment rate of return 6.25% 7.45%
Mortality The same version of
Pub-2010 Headcount
weighted tables as used
the the FRS in their
7/1/19 Actuarial
Valuation
PubS.H-2010 for
Employees, set forward
one year
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, 2021, are
summarized in the following table:
Asset Class
Long-Term Expected Real Rate of
Return
General
Employees
Fire and
Police
Domestic equity 6.75% 7.50%
International equity 6.50% 8.50%
Domestic bonds 2.50% 2.50%
Real estate N/A 4.50%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
59
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability was 6.25 percent for
the General Employees Retirement Fund and 7.45 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
5.25% 6.25% 7.25%
Village's net pension liability $ 683,222 $ (1,753,376) $ (3,776,585)
Fire and Police Retirement System
Current
Discount
1% Decrease Rate 1% Increase
6.45% 7.45% 8.45%
Village's net pension liability $ 4,481,219 $ (374,601) $ (4,372,496)
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, 2021, are reported using a measurement date of September 30, 2020.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
60
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as
of October 1, 2019 updated to September 30, 2020 using the following actuarial assumptions
applied to the September 30, 2020, measurement period.
General Employees Fire and Police
Inflation 2.50% 2.50%
Salary increases Service based Service based
Investment rate of return 6.75% 7.70%
Mortality RP2000 Combined
Healthy Participant,
Scale BB.
Female: 100%
Annuitant White
Collar,
Male Annuitant White
Collar/50% Annuitant
Blue Collar
PubS.H-2010 for
Employees, set forward
one year
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, 2020, are
summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return
General
Employees
Fire and
Police
General
Employees
Fire and
Police
Domestic equity 45% 50% 6.75% 7.50%
International equity 15 10 6.50% 8.50%
Domestic bonds 40 30 2.50% 2.50%
Real estate N/A 10 N/A 4.50%
Total 100% 100%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
61
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability was 6.75 percent for
the General Employees Retirement Fund and 7.70 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, 2020, the components of the net pension liability
reported by the Village at September 30, 2021, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability
(a)-(b)
Balances at September 30, 2019 $ 18,093,051 $ 16,970,487 $ 1,122,564
Changes due to:
Service cost 216,125 216,125
Interest 1,211,026 1,211,026
Difference between expected
and actual experience (343,736) (343,736)
Changes of Assumptions
Employer contributions 232,738 (232,738)
Employee contributions 85,829 (85,829)
Benefit payments and refunds (736,101) (736,101)
Net investment income 1,497,222 (1,497,222)
Administrative expenses (60,096) 60,096
Total changes 347,314 1,019,592 (672,278)
Balances at September 30, 2020 $ 18,440,365 $ 17,990,079 $ 450,286
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
62
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
Plan fiduciary net position as a
percentage of total pension liability 97.56%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Current
Discount
1% Decrease Rate 1% Increase
5.75% 6.75% 7.75%
Village's net pension liability $ 2,915,900 $ 450,286 $ (1,586,353)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2021, the Village recognized pension expense of
$(447,478). 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 $ $ 114,579
Differences between expected and actual
experience 246,720
Village plan contributions subsequent
to the measurement date 197,770
Total $ 197,770 $ 361,299
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
63
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
Pension expense and deferred outflows and inflows of resources (Continued)
The deferred outflows of resources totaling $197,770 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 subsequent fiscal year. 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
2022 $ (259,447)
2023 (30,748)
2024 2,462
2025 (73,566)
2026
Thereafter
$ (361,299)
Fire and Police Retirement System
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Current
Discount
1% Decrease Rate 1% Increase
6.70% 7.70% 8.70%
Village's net pension liability $ 9,225,434 $ 4,525,190 $ 637.598
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
64
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Changes in Net Pension Liability
Using a measurement date of September 30, 2020, the components of the net pension liability
reported by the Village at September 30, 2021, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability
(a)-(b)
Balances at September 30, 2019 $ 30,766,565 $ 26,428,153 $ 4,338,412
Changes due to:
Service cost 1,102,333 1,102,333
Interest 2,423,113 2,423,113
Differences between expected
and actual experience 319,251 319,251
Change of benefit terms
Change of assumptions (981,457) (981,457)
Employer contributions 863,762 (863,762)
Employer contributions-state 339,482 (339,482)
Employee contributions 329,454 (329,454)
Employee contributions buy back 3,498 3,498
Benefit payments and refunds (799,809) (799,809)
Net investment income 1,228,865 (1,228,865)
Administrative expenses (85,101) 85,101
Total changes 2,066,929 1,880,151 186,778
Balances at September 30, 2020 $ 32,833,494 $ 28,308,304 $ 4,525,190
Plan fiduciary net position as a
percentage of total pension liability 86.24%
The pension liability of the Fire and Police plan decreased by $981,457 due to a change in the
assumed rates of mortality.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
65
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, 2021, the Village recognized pension expense of
$2,625,446. 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 $ 1,316,590 $
Differences between expected and actual
experience 396,242 216,646
Change of assumptions 362,867 1,402,678
Village plan contributions subsequent
to the measurement date 1,105,440
Total $ 3,181,139 $ 1,619,324
The deferred outflows of resources totaling $1,105,440 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 subsequent fiscal year. 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
2022 $ 145,421
2023 266,390
2024 233,077
2025 (2,174)
2064 (29,181)
Thereafter (157,158)
$ 456,375
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
66
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, 2021, using a measurement date of September 30, 2020, are as follows:
General
Employees
Fire and
Police Total
Total pension liability $ 18,440,365 $ 32,833,494 $ 51,273,859
Plan fiduciary net position 17,990,079 28,308,304 46,298,383
Net pension liability 450,286 4,525,190 4,975,476
Deferred outflows of resources 197,770 3,181,139 3,378,909
Deferred inflows of resources 361,299 1,619,324 1,980,623
Pension expense (447,478) 1,466,377 1,018,899
Accounts Payable - - -
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, 2021, $350,777 was recorded as revenues and expenditures in the On-Behalf
Pension Contribution Special Revenue Fund relating to on-behalf payments received from the
state.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
67
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, 2021, is presented below.
STATEMENT OF FIDUCIARY NET POSITION
General
Employees’
Pension
Assets
Cash and cash equivalents $ 335,993
Investments:
Fixed income exchange traded funds 2,552,819
Equity exchange traded funds 676,812
Fixed income mutual funds 4,793,412
Domestic equity mutual funds 10,212,616
International equity mutual funds 1,997,705
Accrued dividends and interest 1
Prepaids 3,548
Total assets 20,572,906
Liabilities
Accounts payable 32,049
Total liabilities 32,049
Net position
Held in trust for pension benefits and
other purposes
$ 20,540,857
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
68
NOTE 10 – PENSION PLAN FINANCIAL INFORMATION (Continued)
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
General
Employees’
Pension
Additions
Contributions
Employer $ 197,770
Plan members 76,595
Total contributions 274,365
Investment earnings
Dividends and interest 306,066
Net (decrease) in the fair value
of investments 2,887,424
Less investment expense (57,827)
Total investment earnings 3,135,663
Total additions 3,410,028
Deductions
Administration 74,760
Refund of member contributions 3,001
Benefits 781,489
Total deductions 859,250
Change in net position 2,550,778
Net position - beginning 17,990,079
Net position - ending $ 20,540,857
NOTE 11 – DEFINED CONTRIBUTION PLAN
Effective October 1, 2006, all employees of the Village may participate in one of four Money
Purchase Plans that are qualified Defined Contribution Plans adopted under the provisions of
Internal Revenue Code Section 401(a). The four pension plans include Village Manger,
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, 2021
69
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.
The Village’s activities do not meet the criteria for inclusion in the fiduciary funds of a government.
Plan detail for participating employees at September 30, 2021, is listed below:
Village
Manager
Directors
General
Employees
Municipal
Employees
Employee contributions $ 5,620 $ 78,657 $ 71,219 $ 79,522
Village pension expense 28,101 155,017 201,730 193,831
Forfeitures - - 22,002 5,973
Payable as of fiscal year end - - - -
NOTE 12 – DEFERRED COMPENSATION PLAN ASSETS
Employees of the Village may participate in a deferred compensation plan adopted under the
provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with Respect to
Service for State and Local Governments).
The deferred compensation plan is available to all employees of the Village. Under the plan,
employees may elect to defer a portion of their salaries and avoid paying taxes on the deferred
portion until the withdrawal date. The deferred compensation amount is not available for
withdrawal by employees until termination, retirement, death, or unforeseeable emergency. A third
party administers the deferred compensation plan.
In 1998, the Village Adopted GASB-32, Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans. The Village modified its Deferred
Compensation Plan to conform with the changes in the Internal Revenue Code brought about by the
Small Business Job Protection Act of 1996 (the “Act”). The Act requires that eligible deferred
compensation plans established and maintained by governmental employers be amended to provide
that all assets of the plan be held in trust, or under one or more appropriate annuity contracts or
custodial accounts, for the exclusive benefit of plan participants and their beneficiaries. As a result
of this change, these plan assets are not property of the Village and are not subject to the claims of
the Village’s general creditors.
The Village’s activities do not meet the criteria for inclusion in the fiduciary funds of a
government.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
70
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS
General Information about the OPEB Plan
Effective October 1, 2016, the Village implemented Governmental Accounting Standards Board
Statement 75 (GASB 75), Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions. Retirees of the Village pay an amount equal to the actual premium for
health insurance charged by the carrier. The premium charged includes an implied subsidy, as
the amount charged for all participants (active employee or retiree) is the same, regardless of
age. Under GASB 75, an implied subsidy is considered other post-employment benefits (OPEB).
The following describes the Village’s OPEB Provisions:
Plan Description
The Village provides a single employer defined benefit health care plan to all of its employees
and the plan is administered by the Village. The plan has no assets and does not issue a separate
financial report.
Benefits Provided
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 or 52,
depending on the option selected by the employee and 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.
Employees Covered by Benefit Terms
At September 30, 2020, the date of the last actuarial valuation, the following employees were
covered by benefit terms:
Participants
Active employees 138
Inactive employees currently receiving benefits 4
Inactive employees entitled to but not receiving benefits -
Total 142
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
71
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Contribution Requirements: The Village does not make direct contributions to the plan on behalf
of retirees. Retirees and their beneficiaries pay the same group health rates as active employees.
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 annual age-adjusted costs paid by the Village, or its active employees, for
coverage of the retirees and their dependents net of the retiree’s own payments for the year.
Total OPEB Liability
The Village’s total OPEB liability of $882,549 was measured as of September 30, 2021 and was
determined by the actuarial valuation as September 30, 2020.
Actuarial Assumptions and Methods
The total OPEB liability was determined using the following actuarial assumptions and other
methods:
Valuation Date: September 30, 2020
Measurement Date: September 30, 2021
Discount Rate: 2.19% per annum
Source Bond Buyer GO 20-Bond Municipal Index
Salary Increase Rate: Service based between 4% to 10% per annum
Health Care Trend Rate: An initial rate of 6.25% decreasing by 0.25%
annually to an ultimate rate of 3.99%.
Inflation Rate: 2.25%
Marriage Rate/Participation: The assumed number of eligible dependents is
based on the current portions of single and family
contracts in the census provided. The spousal
participation assumed at retirement is 75%.
Actuarial Cost Method: Entry Age Normal based on level percentage of
projected salary.
Amortization Method: Experience/Assumptions gains and losses are
amortized over the closed period of 9 years
starting on October 1, 2017, equal to the average
remaining service of active and inactive plan
members (who have no future service).
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
72
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Actuarial Assumptions and Methods (Continued)
Plan Participation Percentage: The participation percentage is the assumed rate
of future eligible retirees who elect to continue
health coverage at retirement. It is assumed that
25% of employees elect coverage. This assumes
that a one-time irrevocable election to participate
is made at retirement.
Mortality Rates: The PUB‐2010 Generational tables used are
projected by Scale MP‐2018 from 2010. Discount Rate
The Village does not have a dedicated Trust to pay retiree healthcare benefits. Per GASB 75, the
discount rate is a yield or index rate for 20-year, tax-exempt municipal bonds. As a result, the
calculation used a rate of 2.19%.
Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at September 30, 2020 $ 803,795
Changes for the Year:
Service Cost 72,316
Interest Cost 20,766
Changes in benefit terms
Changes of Assumptions and Other Inputs 14,544
Benefit Payments (28,872)
Net Change in Total OPEB Liability 78,754
Balance at September 30, 2021 $ 882,549
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
73
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in Assumptions
The discount rate was 2.41% at 10/1/20 and 2.19% at 9/30/21.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Village, as well as what the Village’s total
OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point
lower or 1-percentage-point higher then the current discount rate:
1.0% Decrease Discount Rate 1.0% Increase
(1.19%) (2.19%) (3.19%)
Total OPEB Liability $ 952,168 $ 882,549 $ 817,771
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Trend Rates
The following presents the total OPEB liability of the Village, as well as what the Village’s total
OPEB liability would be if it were calculated using healthcare cost trends that are 1-percentage-
point lower or 1-percentage-point higher (then the current healthcare cost trend rates:
Healthcare cost
1.0% Decrease Trend Rates 1.0% Increase
Total OPEB Liability $ 779,424 $ 882,549 $ 1,004,898
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2021, the Village recognized OPEB expense of $(258,666). At
September 30, 2021, the Village reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
Deferred
Outflows
Deferred
Inflows
of Resources of Resources
Changes of Assumptions/Inputs $ 61,645 $ 1,081,077
Differences Between Expected and Actual Experience 677,194
Total $ 61,654 $ 1,758,271
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
74
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources will be
recognized in OPEB expense as follows:
Fiscal Year Ending:
September 30, 2022 $ (351,748)
September 30, 2023 (351,748)
September 30, 2024 (351,748)
September 30, 2025 (351,746)
September 30, 2026 (97,762)
Thereafter (191,874)
$ (1,696,626)
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 $204,019 to
Seacoast during the fiscal year for water and sewer service.
NOTE 15 –INTERFUND ACTIVITY
Due from/to other funds
The due to Capital Projects Fund of $72,091 from the Country Club Fund are for capital projects
that have not been fully expended.
Advances to/from other funds
The advance from the General Fund to the Country Club Fund was to provide $1,700,000 for the
renovation of the Golf Course. The Country Club Fund will start paying back the advance
$1,700,000 in the fiscal year ending September 30, 2025, which is after the Bank of America
loan is paid off.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
75
NOTE 15 –INTERFUND ACTIVITY (Continued)
Transfers
Interfund transfers during the year ended September 30, 2021, are as follows:
The $510,000 from the General Fund to the Capital Projects Fund and the $115,280 from the
General Fund to the Infrastructure Surtax Fund were to fund capital projects according to the
original budget and subsequent budget amendments. The $274,000 from the General Fund to the
Country Club Enterprise Fund were to help fund the operations of the Tennis and Pool activities.
There was also a transfer in the Country Club Enterprise Fund of $3,254,697 from the
Governmental Activities which was the net book value of the assets of the Tennis and Pool.
NOTE 16 – CONTRACTS, COMMITMENTS AND CONTINGENCIES
Restaurant Operating Lease
The Village is committed under a lease agreement as lessor of the food and beverage operations
at the North Palm Beach Country Club. The Village is leasing the restaurant including
indoor/outdoor bar, kitchen, snack bar, beverage and server station and designated storage areas
as exclusive use premises together with non-exclusive rights to the use of the covered pavilion,
covered front entry, pool deck, banquet room, event lawn, restrooms and other public areas in
and around the Country Club to Farmer’s Table LLC (Lessee). The initial term of the lease is
five years and the lease shall automatically renew for additional five year terms unless either
party gives the other party written notice of its intent not to renew at least one hundred and
eighty days prior to the end of the term. The lease is considered for accounting purposes to be an
operating lease.
During the initial term the base rent shall be $8,333 per month. Beginning on the first date of
any renewal term, the rent shall increase by 3% over the base rent payable for the immediately
preceding twelve-month period. In addition to the base rent, the Lessee shall pay to the Village
an amount equal to five percent of lessee’s annual gross sales for Restaurant and Catering
Services over Two Million Dollars. The lessee shall also pay 50% of the electric, water/ sewer,
burglar alarm and natural gas of the premises and $12,000 toward the ad valorem property taxes
assessed by the Palm Beach County Property Appraiser and Tax Collector as a result of its
operations during the first year and in subsequent years to pay an equivalent percentage of the
total amount due.
The Village received $100,000 in base rent, $132,852 in supplemental rent and $75,885 in utility
and property tax reimbursements for the year ended September 30, 2021 under the terms of this
lease agreement.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
76
NOTE 16 – CONTRACTS, COMMITMENTS AND CONTINGENCIES (Continued)
Restaurant Operating Lease (Continued)
Minimum-guaranteed income rental income on the lease is as follows:
Year ended September 30: Amount
2022 $ 100,000
2023 100,000
2024 100,000
2025 58,333
$ 358,333
At September 30, 2021, the estimated cost of the exclusive use leased assets was $7,051,900, net
book value was $6,860,911and depreciation expense was $176,298.
Golf Carts 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 2019, at a monthly cost of $13,391. For
the fiscal year ended September 30, 2021 expenses under the lease were $160,692. Future
minimum rental commitments are as follows:
Year ended September 30: Amount
2022 $ 26,782
Subsequent to September 30, 2021, the Village started a new three year lease at an annual cost of
$169,060.
Contract Commitments
On September 17, 2014, the Village entered into an agreement with the City of Palm Beach
Gardens whereby the City of Palm Beach Gardens will provide the Village public safety dispatch
services. The term of the agreement was for two years beginning on October 1, 2014, and
extending through September 30, 2016. In 2016 the agreement was renewed for an additional
five years extending through September 30, 2021. On August 11, 2021 a new five year
agreement was approved expiring September 30, 2026. 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, 2021 is $469,180. On August 11,
2021, a second interlocal agreement was signed for five years expiring on September 30, 2026.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
77
NOTE 16 – CONTRACTS, COMMITMENTS AND CONTINGENCIES (Continued)
Contract Commitments (Continued)
Subsequent to September 30, 2021, the Village approved a lease of $482,712 for seven vehicles,
a lease of $822,335 for a new fire truck and road resurfacing projects of $654,048.
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 – COVID-19
On January 30, 2020, the World Health Organization (WHO) announced a global health
emergency because of a new strain of coronavirus originating in Wuhan, China (the COVID-19
outbreak) and the risks to the international community as the virus spreads globally beyond its
point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic,
based on the rapid increase in exposure globally. As a result of worldwide reporting of COVID-
19 infections, certain national, state, and local governmental authorities have issued stay-at-home
orders, proclamations and/or directives aimed at minimizing the spread of COVID-19.
Additionally, more restrictive proclamations and/or directives may be issued in the future. As a
result, certain internal operations, communications and administrative operations of the Village
have been disrupted. In addition to implementing protective guidelines and protocols, the Village
considered and implemented preventative and protection measures recommended by the Centers
for Disease Control and Prevention (CDC) aimed at providing a safe environment for Village
personnel during the course of the COVID-19 pandemic.
The ultimate impact of the COVID-19 pandemic on the Village’s operations is unknown and will
depend on future developments, which are highly uncertain and cannot be predicted with
confidence, including the duration of the COVID-19 outbreak, new information which may
emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and
protective actions that other governments or agencies may direct, which may result in an
extended period of operational disruption. Any resulting financial impact cannot be reasonably
estimated at this time but could be anticipated to have a material adverse impact on the Village’s
operations, financial position, and results of operations for fiscal year 2021.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
78
NOTE 18 – STORMWATER UTILITY FUND
For Fiscal Year 2022, the Village implemented a stormwater utility enterprise fund. The Village
established utility assessments for stormwater management services to be levied against all
developed properties that benefit from the Village's stormwater management system. These
functions include, but are not limited to, maintenance, planning, design, construction, regulation,
surveying, and inspection as they relate to stormwater management facilities of the Village. The
stormwater utility assessments will be levied as a non-ad valorem special assessment on the tax
bill using the Uniform Method of Collection as authorized by state statute. The fund has a
budget of $518,112 for fiscal year 2022.
NOTE 19 – NEW ACCOUNTING STANDARDS
Implementation of Governmental Accounting Standards Board Statements
The Village implemented the following Governmental Accounting Standards Board (GASB)
Statements during the fiscal year ended September 30, 2021:
• GASB issued Statement No. 84, Fiduciary Activities. This Statement will improve
guidance regarding the identification of fiduciary activities for accounting and financial
reporting purposes and how those activities should be reported. The statement had no
financial impact in the current year. However, the statement did change the classification
of Agency Funds to Custodial Funds, which now present a Statement of Changes in Net
Position.
• GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of
GASB Statement No. 32. The requirements of this Statement will result in more
consistent financial reporting of defined contribution pension plans, defined contribution
OPEB plans, and other employee benefit plans, while mitigating the costs associated with
reporting those plans. The Village implemented the provisions of this statement related to
GASB Statements No. 14 and No. 84 in the current fiscal year.
• In October 2021 the GASB issued Statement No. 98, The Annual Comprehensive
Financial Report. This Statement establishes the term annual comprehensive financial
report and its acronym ACFR. The new term and acronym replace instances of
comprehensive annual financial report and its acronym in generally accepted accounting
principles for state and local governments
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2021
79
NOTE 19 – NEW ACCOUNTING STANDARDS (Continued)
Recently Issued Accounting Pronouncements
Below is a brief description and effective date of new accounting standards that could have a
significant impact on the Village.
• GASB Statement No. 87, Leases. This Statement will increase the usefulness of
governments’ financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as
inflows of resources or outflows of resources based on the payment provisions of the
contract. It establishes a single model for lease accounting that is based on the
foundational principle that leases are financings of the right to use an underlying asset.
This Statement is effective for the fiscal year ending September 30, 2022
• GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
This Statement provides guidance on the accounting and financial reporting for
subscription-based information technology arrangements (SBITAs) for government end
users (governments). This Statement is effective for the fiscal year ending September 30,
2023.
• GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and
Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation
Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of
GASB Statement No. 32. The requirements of this Statement will result in more consistent
financial reporting of defined contribution pension plans, defined contribution OPEB
plans, and other employee benefit plans, while mitigating the costs associated with
reporting those plans. The sections of the statement related to Section 457 deferred
compensation plans is effective for the fiscal year ending September 30, 2022.
Management is currently evaluating the impact of the adoption of these statements on the
Village’s financial statements.
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
PENSION AND OTHER POSTEMPLOYMENT BENEFIT TREND INFORMATION
2018 2019 2020 2021
Total OPEB liability
Service cost 274,702$ 113,906$ 119,601$ 72,316$
Interest cost 124,097 63,447 61,990 20,766
Change in benefit terms 655
Difference between expected
and actual experience (1,354,390)
Changes of assuptions and other imputs (677,494)78,007 (960,663)14,544
Benefit payments (134,593)(56,645)(59,477)(28,872)
Net change in total OPEB liability (1,767,678) 198,715 (837,894) 78,754
Total OPEB liability, beginning of year 3,210,652 1,442,974 1,641,689 803,795
Total OPEB liability, end of year 1,442,974$ 1,641,689$ 803,795$ 882,549$
Covered employee payroll 10,148,392$ 10,566,520$ 9,347,911$ 11,834,425$
Net OBEB liability as a percentage of
covered employee payroll 14.22%15.54%8.60%7.46%
Changes of Assumptions
Discount rate (3.36% at 10/1/17)4.15%3.58%2.41%2.19%
Coverage acceptance rate 40.00%40.00%25.00%25.00%
NOTE: The Village implemented GASB Statement 75 in 2018; information is presented for those
years in which information is available.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2021
Schedule of Changes in Total OPEB Liability
Last Ten Fiscal Years
80
Reporting Year 2015 2016 2017 2018 2019
Measurement Year 2014 2015 2016 2017 2018
Total pension liability:
Service cost 374,926$ 317,676$ 357,344$ 275,504$ 250,072$
Interest 972,865 1,048,746 1,106,085 1,116,142 1,162,025
Differences between Expected and
Actual Experience (329,040) (129,381) (246,222) (307,977)
Assumption changes 928,295 23,053
Benefit payments, including
refunds of employee contributions (263,674) (293,890) (331,174) (454,571) (472,027)
Net change in total pension liability 1,084,117 743,492 1,931,169 713,906 632,093
Total pension liability - beginning 12,728,438 13,812,555 14,556,047 16,487,216 17,201,122
Total pension liability - ending (a)13,812,555$ 14,556,047$ 16,487,216$ 17,201,122$ 17,833,215$
Plan fiduciary net position
Contributions - employer 562,953$ 464,189$ 458,615$ 527,617$ 451,560$
Contributions - Employees 142,609 125,738 126,947 110,417 101,858
Net investment income 1,072,009 (96,116) 1,161,530 1,487,313 1,190,603
Benefit payments, including
refunds of employee contributions (263,674) (293,890) (331,174) (454,571) (472,027)
Administrative expenses (17,171) (20,655) (24,794) (22,361) (21,489)
Net change in plan fiduciary net position 1,496,726 179,266 1,391,124 1,648,415 1,250,505
Plan fiduciary net position - beginning 10,433,153 11,929,879 12,109,145 13,500,269 15,148,684
Plan fiduciary net position - ending (b)11,929,879$ 12,109,145$ 13,500,269$ 15,148,684$ 16,399,189$
Net pension liability (a) - (b)1,882,676$ 2,446,902$ 2,986,947$ 2,052,438$ 1,434,026$
Plan fiduciary net position as a percentage
of the total pension liability 86.37%83.19%81.88%88.07%91.96%
Covered payroll 2,701,771$ 2,375,585$ 2,376,069$ 2,072,121$ 1,966,566$
Net pension liability as a percentage of
covered payroll 69.68%103.00%125.71%99.05%72.92%
Changes of Assumptions (By Measurement Year)
For the 2016 fiscal year the discount rate, investment rate of return, inflation rate, salary scale,
and the withdrawal and mortality rates changed.
For the 2017 fiscal year the mortality rate changed.
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
Schedule of Changes in Net Pension Liability and Related Ratios
Last Ten Fiscal Years
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2021
General Employees Retirement Fund
81
2020 2021 2022
2019 2020 2021
251,678$ 216,125$ 211,929$
1,201,578 1,211,026 1,232,553
(625,948) (343,736) (29,429)
(283,447)
(567,472) (736,101) (784,490)
259,836 347,314 347,116
17,833,215 18,093,051 18,440,365
18,093,051$ 18,440,365$ 18,787,481$
358,152$ 232,738$ 197,770$
97,522 85,829 76,595
721,786 1,497,222 3,135,663
(567,472) (736,101) (784,490)
(38,690) (60,096) (74,760)
571,298 1,019,592 2,550,778
16,399,189 16,970,487 17,990,079
16,970,487$ 17,990,079$ 20,540,857$
1,122,564$ 450,286$ (1,753,376)$
93.80%97.56%109.33%
1,834,767$ 1,612,777$ 1,472,661$
61.18%27.92%-119.06%
For the 2021 fiscal year the morality tables, assumed rates of retirement, withdrawal rate, salary increases, and cost of living
adjustments were all updated and the investment return assumption was reduce from 6.75% to 6.25%.
82
Reporting Year 2015 2016 2017 2017 2019
Measurement Year 2014 2015 2016 2017 2018
Total pension liability:
Service cost 699,244$ 810,654$ 833,909$ 851,932$ 897,280$
Interest 1,419,425 1,555,518 1,738,069 1,779,947 1,922,314
Changes in excess state money 90,535 67,645 79,505 83,231 77,905
Changes of benefit terms 1,682
Differences between Expected and
Actual Experience 483,189 (31,422) (197,249) 187,041
Changes of assumptions 246,146 (1,223,780) 198,680 174,565
Contributions - Buy Back 65,446 7,609 7,902 4,746
Benefit payments, including
refunds of employee contributions (451,574) (611,678) (653,993) (680,673) (751,317)
Net change in total pension liability 2,003,776 2,372,456 749,897 2,043,770 2,512,534
Total pension liability - beginning 17,476,586 19,480,362 21,852,818 22,602,715 24,646,485
Total pension liability - ending (a)19,480,362$ 21,852,818$ 22,602,715$ 24,646,485$ 27,159,019$
Plan fiduciary net position
Contributions - employer 943,634$ 975,733$ 969,836$ 945,880$ 822,951$
Contributions - State 321,230 298,340 310,200 309,138 308,600
Contributions - Employees 87,010 151,450 190,989 211,474 224,469
Contributions - Buy Back 65,446 7,609 7,902 4,746
Net investment income 1,468,473 111,884 1,475,735 2,198,298 1,637,891
Benefit payments, including
refunds of employee contributions (451,574) (611,678) (653,993) (680,673) (751,317)
Administrative expenses (66,748) (76,457) (76,967) (76,293) (78,399)
Net change in plan fiduciary net position 2,302,025 914,718 2,223,409 2,915,726 2,168,941
Plan fiduciary net position - beginning 14,499,921 16,801,946 17,716,664 19,940,073 22,855,799
Plan fiduciary net position - ending (b)16,801,946$ 17,716,664$ 19,940,073$ 22,855,799$ 25,024,740$
Net pension liability (a) - (b)2,678,416$ 4,136,154$ 2,662,642$ 1,790,686$ 2,134,279$
Plan fiduciary net position as a percentage
of the total pension liability 86.25%81.07%88.22%92.73%92.14%
Covered payroll 4,312,746$ 4,518,020$ 4,601,075$ 4,772,092$ 5,088,564$
Net pension liability as a percentage of
covered payroll 62.10%91.55%57.87%37.52%41.94%
Changes of Assumptions (By Measurement Year)
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, discount rate,
withdrawal and mortality rates, and the actuarial cost method all changed.
For the 2017 fiscal year the mortality rates and the investment rate of return changed.
For the 2018 fiscal year the the investment rate of return changed.
For the 2019 fiscal year the benefit accrual rated changed prospectively from 2.5% to 2.75%.
For the 2019 fiscal year the investment rate of return changed from 7.75% to 7.70%.
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those
years in which information is available.
Schedule of Changes in Net Pension Liability and Related Ratios
Last Ten Fiscal Years
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2021
Fire and Police Retirement Fund
83
2020 2021 2022
2019 2020 2021
1,031,048$ 1,102,333$ 1,026,423$
2,236,125 2,423,113 2,574,829
(600,965)
1,660,762
(138,741) 319,251 (1,956,361)
205,896 (981,457) 464,035
6,698 3,498 3,498
(793,277) (799,809) (841,165)
3,607,546 2,066,929 1,271,259
27,159,019 30,766,565 32,833,494
30,766,565$ 32,833,494$ 34,104,753$
918,263$ 863,762$ 754,690$
328,826 339,482 350,777
239,271 329,454 383,070
6,698 3,498 3,498
787,045 1,228,865 5,607,643
(793,277) (799,809) (841,165)
(83,413) (85,101) (87,463)
1,403,413 1,880,151 6,171,050
25,024,740 26,428,153 28,308,304
26,428,153$ 28,308,304$ 34,479,354$
4,338,412$ 4,525,190$ (374,601)$
85.90%86.22%101.10%
5,451,987$ 5,134,942$ 5,169,073$
79.57%88.13%-7.25%
For the 2020 fiscal year the mortality rates changed.
For the 2021 fiscal year the investment return assumption was reduced from 7.7% to 7.45% along with changes to the salary increase rates,
normal retierment rates and the assumed rates of withdrawal.
84
Schedule of Contributions
Fiscal Year Actuarially Contribution 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%
2017 519,821 527,617 (7,796) 2,072,121 25.46%
2018 449,477 451,560 (2,083) 1,966,566 22.96%
2019 355,507 358,152 (2,645) 1,834,767 19.52%
2020 231,604 232,738 (1,134) 1,612,777 14.43%
2021 194,733 197,770 (3,037) 1,472,661 13.43%
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%
2017 1,175,844 1,171,787 4,057 4,772,092 24.55%
2018 1,038,576 1,053,646 (15,070) 5,088,564 20.71%
2019 1,135,649 1,247,089 (111,440) 5,451,987 22.87%
2020 1,190,793 1,203,271 (12,478) 5,134,942 23.43%
2021 1,233,858 1,105,440 128,418 *5,169,073 21.39%
*Prior year excess contributions were used.
Schedule of Investment Returns
Fiscal Year
Ending General Fire and Police
September 30 Employees Employees
2014 10.50%10.00%
2015 -0.39%0.66%
2016 9.72%8.25%
2017 11.32%10.92%
2018 8.26%7.14%
2019 4.63%3.13%
2020 9.28%4.62%
2021 17.85%19.69%
NOTE: The Village implemented GASB Statement 67 in 2014; information is presented for those years
in which information is available.
Annual money weighted rate of return
net of investment expense
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2021
Last Ten Fiscal Years
85
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.
General Employees Police and Fire
Retirement Fund Retirement Fund
Valuation Date October 1, 2019 October 1, 2019
Actuarial Cost Method Frozen Entry-Age Entry Age Normal
Amortization Method Level Dollar, closed Level Percentage of Compensation
Remaining Amortization Period 27 19
Asset Valuation Method Five year smoothed market Five year smoothed market
Inflation 2.50%2.50%
Salary increases Service based Service based
Between 4% and 10%Between 4.5% and 10%
Cost of living adjustments 2.5% for those retired before 2.50%
2/1/82 or who contribute
an extra 2%.
Investment Rate of Return 6.75%7.70%
Mortality RP2000 Combined Healthy
Participant, Scale BB.
Female: 100% Annuitant
White Collar,
Male Annuitant White
Collar/50% Annuitant Blue
Collar
PubS.H-2010 for Employees, set
forward one year
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Schedule of Contributions
September 30, 2021
86
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, 2021
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 21,179,961$ 21,179,961$ 21,805,910$ 625,949$
Licenses and permits 1,102,200 1,102,200 1,574,639 472,439
Intergovernmental 1,260,736 1,260,736 1,826,787 566,051
Charges for services 1,797,050 1,797,050 1,726,853 (70,197)
Fines and forfeitures 117,260 117,260 154,410 37,150
Investment 218,710 218,710 70,892 (147,818)
Miscellaneous 27,880 27,880 296,245 268,365
Total revenues 25,703,797 25,703,797 27,455,736 1,751,939
Expenditures
Current
General government 3,366,932 3,371,832 3,507,052 (135,220)
Public safety 10,569,018 10,569,018 10,502,065 66,953
Public works 5,704,792 5,725,388 5,117,986 607,402
Community development and planning 1,655,019 1,780,867 1,292,216 488,651
Leisure services 1,974,036 1,974,036 1,695,054 278,982
Other government
Capital outlay 10,000 1,719,439 2,154,869 (435,430)
Debt service
Principal payments 1,106,148 1,106,148 1,106,148
Interest paid on debt 533,852 533,852 491,022 42,830
Total expenditures 24,919,797 26,780,580 25,866,412 914,168
Excess of revenues over
expenditures 784,000 (1,076,783) 1,589,324 2,666,107
Other financing sources (uses)
Appropriated fund balance 160,431 (160,431)
Capital lease proceeds 1,700,352 1,682,018 (18,334)
Transfer out (784,000) (784,000) (899,280) (115,280)
Total other financing uses (784,000) 1,076,783 782,738 (294,045)
Net change in fund balances $ $ 2,372,062 2,372,062$
Fund Balances
Beginning of year 14,204,658
End of year 16,576,720$
87
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Budgetary
Required Supplementary Information (RSI)
General Fund
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.
September 30, 2021
88
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, 2021
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
Village Council
Personnel services 69,330$ 69,330$ 50,449$ 18,881$ 27.23
Operating expenses 81,840 86,740 78,151 8,589 9.90
Total Village Council 151,170 156,070 128,600 27,470 17.60
Village Manager
Personnel services 641,082 641,082 643,115 (2,033) -0.32
Operating expenses 51,050 51,050 60,136 (9,086) -17.80
Total Village Manager 692,132 692,132 703,251 (11,119) -1.61
Village Finance
Personnel services 638,965 638,965 622,369 16,596 2.60
Operating expenses 56,400 56,400 69,644 (13,244) -23.48
Total Village Finance 695,365 695,365 692,013 3,352 0.48
Village Attorney
Operating expenses 160,000 160,000 185,550 (25,550) -15.97
Village Clerk
Personnel services 293,259 293,259 292,089 1,170 0.40
Operating expenses 42,715 42,715 62,742 (20,027) -46.89
Total Village Clerk 335,974 335,974 354,831 (18,857) -5.61
Information Technology
Personnel services 388,577 388,577 396,148 (7,571) -1.95
Operating expenses 121,825 121,825 106,072 15,753 12.93
Total Information Technology 510,402 510,402 502,220 8,182 1.60
Human Resources
Personnel services 332,244 332,244 309,926 22,318 6.72
Operating expenses 85,650 85,650 89,313 (3,663) -4.28
Total Human Resources 417,894 417,894 399,239 18,655 4.46
Police
Personnel services 5,393,159 5,393,159 5,727,062 (333,903) -6.19
Operating expenses 983,512 983,512 885,778 97,734 9.94
Total Police 6,376,671 6,376,671 6,612,840 (236,169) -3.70
Fire Rescue
Personnel services 3,681,347 3,681,347 3,456,145 225,202 6.12
Operating expenses 397,235 397,235 337,824 59,411 14.96
Total Fire Rescue 4,078,582 4,078,582 3,793,969 284,613 6.98
(Continued)
89
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2021
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
(Continued)
Public Works Administration
Personnel services 362,648$ 362,648$ 310,898$ 51,750$ 14.27
Operating expenses 88,920 88,920 99,049 (10,129) -11.39
Total Public Works 451,568 451,568 409,947 41,621 9.22
Sanitation
Personnel services 1,517,735 1,517,735 1,303,415 214,320 14.12
Operating expenses 259,000 259,000 267,908 (8,908) -3.44
Total Sanitation 1,776,735 1,776,735 1,571,323 205,412 11.56
Facility Services
Personnel services 368,869 368,869 331,090 37,779 10.24
Operating expenses 494,800 505,793 418,059 87,734 17.35
Total Facility Services 863,669 874,662 749,149 125,513 14.35
Street Maintenance
Personnel services 514,829 514,829 473,432 41,397 8.04
Operating expenses 1,494,920 1,497,720 1,278,172 219,548 14.66
Total Street Maintenance 2,009,749 2,012,549 1,751,604 260,945 12.97
Vehicle Maintenance
Personnel services 300,386 300,386 295,734 4,652 1.55
Operating expenses 302,685 302,685 268,922 33,763 11.15
Total Vehicle Maintenance 603,071 603,071 564,656 38,415 6.37
Planning and Engineering
Personnel services 340,342 340,342 261,732 78,610 23.10
Operating expenses 132,350 236,608 110,192 126,416 53.43
Total Planning and Engineering 472,692 576,950 371,924 205,026 35.54
Building
Personnel services 760,924 760,924 577,139 183,785 24.15
Operating expenses 163,800 185,390 183,292 2,098 1.13
Total Building 924,724 946,314 760,431 185,883 19.64
Code Enforcement
Personnel services 232,578 232,578 144,888 87,690 37.70
Operating expenses 28,025 28,025 17,973 10,052 35.87
Total Code Enforcement 260,603 260,603 162,861 97,742 37.51
Recreation
Personnel services 578,217 578,217 451,211 127,006 21.97
Operating expenses 448,430 448,430 386,438 61,992 13.82
Total Leisure Services-Recreation 1,026,647 1,026,647 837,649 188,998 18.41
(Continued)
90
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2021
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
(Continued)
Library
Personnel services 668,737$ 668,737$ 640,703$ 28,034$ 4.19
Operating expenses 180,652 180,652 185,234 (4,582) -2.54
Total Library 849,389 849,389 825,937 23,452 2.76
Special Events
Operating expenses 98,000 98,000 31,468 66,532 67.89
Total Special Events 98,000 98,000 31,468 66,532 67.89
Debt Service 1,640,000 1,640,000 1,597,170 42,830 2.61
Reserves and contingencies
Operating expenses 6,803 71,307 (64,504) -948.17
6,803 71,307 (64,504) (948.17)
Non-Departmental
Operating expenses 514,760 514,760 633,604 (118,844) -23.09
514,760 514,760 633,604 (118,844) -23.09
Capital Outlay
Police 48,810 (48,810)
Facility Services 10,000 10,000 9,715 285
Vehicle Maintenance 51,199 (51,199)
Street Maintenance 9,087 288,642 (279,555)
Sanitation 60,000 (60,000)
Leisure Services-Recreation 14,485 (14,485)
Capital leases 1,700,352 1,682,018 18,334 1.08
Total Capital Outlay 10,000 1,719,439 2,154,869 (435,430) -25.32
Total expenditures 24,919,797$ 26,780,580$ 25,866,412$ 914,168$ 3.41%
91
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Public Safety Fund
Northlake Boulevard Fund
Recreation Fund
On-Behalf Pension Contributions
Capital Projects Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
Special Revenue Funds
Public Northlake On-Behalf Capital Total Nonmajor
Safety Boulevard Pension Projects Governmental
Fund Fund Recreation Contributions Fund Funds
Assets
Cash and cash equivalents 757$ 1,987$ 248,509$ $ 967,644$ 1,218,897$
Due from other funds 72,091 72,091
Total assets 757$ 1,987$ 248,509$ $ 1,039,735$ 1,290,988$
Liabilities
Accounts payable $ $ 688$ $ 29,054$ 29,742$
Total liabilities 688 29,054 29,742
Fund balances
Assigned 757 1,987 247,821 1,010,681 1,261,246
Total fund balances 757 1,987 247,821 1,010,681 1,261,246
Total liabilities, deferred inflows of
resources, and fund balances 757$ 1,987$ 248,509$ $ 1,039,735$ 1,290,988$
September 30, 2021
92
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, 2021
Special Revenue Funds
Public Northlake On-Behalf Capital Total Nonmajor
Safety Boulevard Pension Projects Governmental
Fund Fund Recreation Contributions Fund Funds
Revenues
Intergovernmental $ $ $ 350,777$ $ 350,777$
Total revenues 350,777 350,777
Expenditures
Current
Public safety 763 350,777 351,540
Capital outlay 12,470 650,330 662,800
Total expenditures 763 12,470 350,777 650,330 1,014,340
Excess (deficiency) of revenues over
(under) expenditures (763) (12,470) (650,330) (663,563)
Other financing sources (uses)
Transfers in 510,000 510,000
Total other financing sources (uses) 510,000 510,000
Net changes in fund balances (763) (12,470) (140,330) (153,563)
Fund balances - Beginning of year 1,520 1,987 260,291 1,151,011 1,414,809
Fund balances - End of year 757$ 1,987$ 247,821$ $ 1,010,681$ 1,261,246$
93
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
Fire and Total
General Police Employee
Employees Officers Retirement
Pension Pension Funds
Assets
Cash and cash equivalents 335,993$ 246,716$ 582,709$
Investments:
Domestic common equity securities 18,596,377 18,596,377
International common equity securities 3,608,356 3,608,356
U.S. Government and agencies 4,563,802 4,563,802
Municipal bonds 478,775 478,775
Domestic corporate bonds 3,115,749 3,115,749
International corporate bonds 275,218 275,218
Fixed income exchange traded funds 2,552,819 2,552,819
Equity exchange traded funds 676,812 676,812
Fixed income mutual funds 4,793,412 4,793,412
Domestic equity mutual funds 10,212,616 10,212,616
International equity mutual funds 1,997,705 1,997,705
Real estate investment fund 3,052,366 3,052,366
Money market mutual funds 648,615 648,615
Accrued interest and dividends 1 45,143 45,144
Prepaids 3,548 1,851 5,399
Total assets 20,572,906 34,632,968 55,205,874
Liabilities
Accounts payable 32,049 31,196 63,245
Accounts payable, broker-dealers 122,418 122,418
Total liabilities 32,049 153,614 185,663
Net Position restricted for pensions 20,540,857$ 34,479,354$ 55,020,211$
September 30, 2021
94
Fire and Total
General Police Employee
Employees Officers Retirement
Pension Pension Funds
Additions
Contributions
Employer 197,770$ 754,690$ 952,460$
Plan members 76,595 365,333 441,928
DROP contributions 21,235 21,235
State on-behalf payments 350,777 350,777
Total contributions 274,365 1,492,035 1,766,400
Investment earnings
Dividends and interest 306,066 681,850 987,916
Net increase in fair value of investments 2,887,424 5,079,696 7,967,120
Total investment earnings 3,193,490 5,761,546 8,955,036
Less: investment expenses 57,827 153,903 211,730
Total investment earnings 3,135,663 5,607,643 8,743,306
Total additions 3,410,028 7,099,678 10,509,706
Deductions
Administration 74,760 87,463 162,223
Refund of member contributions 3,001 9,697 12,698
Benefits 781,489 831,468 1,612,957
Total deductions 859,250 928,628 1,787,878
Change in net position 2,550,778 6,171,050 8,721,828
Net position - beginning 17,990,079 28,308,304 46,298,383
Net position - ending 20,540,857$ 34,479,354$ 55,020,211$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Position
For the Year Ended September 30, 2021
95
FIDUCIARY FUNDS
Custodial Funds
Manatee Protection Agency
Northlake Boulevard Task Force
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Net Position - Custodial Funds
Manatee Northlake Total
Protection Boulevard Custodial
Agency Task Force Funds
Assets
Cash and cash equivalents 323,754$ 42,251$ 366,005$
Liabilities
Accounts Payable 42,251 42,251
Net Position restricted for individuals,
organizations and other governments 323,754$ $ 323,754$
September 30, 2021
96
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Manatee Northlake Total
Protection Boulevard Custodial
Agency Task Force Funds
Additions
Interest 2,701$ 510$ 3,211$
Deductions
Refund of contributions 68,767 68,767
Change in net position 2,701 (68,257) (65,556)
Net position - beginning 321,053 68,257 389,310
Net position - ending 323,754$ $ 323,754$
September 30, 2021
Combining Statement of Changes in Fiduciary Net Position
Custodial Funds
97
PROPRIETARY FUND
(ENTERPRISE FUND)
Country Club Fund
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
Revenue
Greens fee/cart rentals/membership fees 3,149,116$ 3,149,116$ 3,690,098$ 540,982$ 17.18
Golf shop revenues 359,000 359,000 437,185 78,185 21.78
Driving range revenues 335,000 335,000 509,455 174,455 52.08
Restaurant revenues 305,150 305,150 315,332 10,182 3.34
Tennis revenues 685,365 685,365 699,117 13,752 2.01
Pool revenues 117,000 117,000 180,030 63,030 53.87
Interest revenues 134 134
Miscellaneous 19,000 19,000 72,003 53,003 278.96
Operating transfers 274,000 274,000 274,000
Appropriated net position 200,000 200,000 (200,000) -100.00
Total revenues 5,443,631 5,443,631 6,177,354 733,723 13.48
Golf Maintenance
Operating expenses 1,721,600 1,721,600 1,794,577 (72,977) -4.24
Capital outlay 42,500 42,500 32,674 9,826
Total Golf Maintenance 1,764,100 1,764,100 1,827,251 (63,151) -3.58
Clubhouse and Grounds
Personnel services 70,636 70,636 75,184 (4,548) (6.44)
Operating expenses 370,200 370,200 382,602 (12,402) (3.35)
Total Clubhouse and Grounds 440,836 440,836 457,786 (16,950) (3.84)
Golf Pro Shop and Range
Personnel services 801,005 801,005 740,215 60,790 7.59
Operating expenses 555,919 555,919 702,389 (146,470) -26.35
Capital outlay 10,000 10,000 52,308 (42,308)
Total Golf Pro Shop and Range 1,366,924 1,366,924 1,494,912 (127,988) -9.36
Food and Beverage
Operating expenses 20,000 20,000 13,659 6,341 31.71
Tennis
Personnel services 604,092 604,092 463,590 140,502
Operating expenses 155,900 155,900 136,378 19,522 12.52
Capital outlay 17,000 17,000 51,487 (34,487)
Total Tennis 776,992 776,992 651,455 125,537 16.16
Pool
Personnel services 111,074 111,074 130,442 (19,368)
Operating expenses 157,420 157,420 178,790 (21,370) -13.58
Capital outlay 30,000 30,000 54,589 (24,589)
Total Pool 298,494 298,494 363,821 (65,327) (21.89)
Administration
Personnel services 263,206 263,206 282,067 (18,861) -7.17
Operating expenses 29,390 29,390 24,470 4,920 16.74
Total Administration 292,596 292,596 306,537 (13,941) -4.76
Insurance and General Liability
Operating expenses 40,000 40,000 21,748 18,252 45.63
Reserves
Operating 10,000 10,000 8,695 1,305 13.05
Total Reserves 10,000 10,000 8,695 1,305 13.05
Debt service
Debt service 433,689 433,689 433,689 0.00
Total expenses on the budgetary basis 5,443,631 5,443,631 5,579,553 (135,922) (2.50)
Revenues under expenses $ $ 597,801$ 597,801$
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 5,579,553
Pension and OPEB adjustments 35,555
Less: capital outlay costs capitalized (181,362)
Less: debt service (433,689)
Add: depreciation expense 855,838
Total operating expenses 5,855,895
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, 2021
98
STATISTICAL SECTION
This part of the Village of North Palm Beach's comprehensive annual financial report presents detailed unaudited information
as a context for understanding what the information in the financial statement, note disclosures, and required supplementary
information says about the Village's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the Village's financial
performance and well-being have changed over time. These schedules include:
Net Position by Component 99
Changes in Net Position 100
Fund Balances, Governmental Funds 102
Changes in Fund Balances, Governmental Fund 103
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 105
Property Tax Rates - Direct and Overlapping Governments 106
Principal Property Taxpayers 107
Property Tax Levies and Collections 108
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 109
Direct and Overlapping Governmental Activities Debt 110
Pledged-Revenue Coverage 111
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 112
Principal Employers 113
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 112
Operating Indicators by Function/Program 113
Capital Asset Statistics by Function/Program 114
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
STATISTICAL SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
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$
2017 2018 2019 2020 2021
Governmental Activities:
Net investment in capital assets 13,484,731$ 15,429,484$ 18,814,116$ 22,423,120$ 18,910,112$
Restricted 992,538 484,568 525,536 986,489 1,418,916
Unrestricted 6,536,225 6,658,744 7,504,062 6,689,693 10,078,079
Total governmental activities net position 21,013,494 22,572,796 26,843,714 30,099,302 30,407,107
Business-Type Activities:
Net investment in capital assets 1,991,168 3,056,715 3,422,142 2,947,241 5,874,752
Unrestricted 361,461 (1,324,978) (3,162,414) (3,161,738) (2,599,491)
Total business-type activities net position 2,352,629 1,731,737 259,728 (214,497) 3,275,261
Primary government:
Net investment in capital assets 15,475,899 18,486,199 22,236,258 25,370,361 24,784,864
Restricted 992,538 484,568 525,536 986,489 1,418,916
Unrestricted 6,897,686 5,333,766 4,341,648 3,527,955 7,478,588
Total primary government net position 23,366,123$ 24,304,533$ 27,103,442$ 29,884,805$ 33,682,368$
(1)The Village implemented GASB 68 in 2015 related to pension accounting which significantly reduced unrestricted net position.
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
Fiscal Year
VILLAGE OF NORTH PALM BEACH
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING) Unaudited
99
VILLAGE OF NORTH PALM BEACH
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING) Unaudited
Fiscal Year
2012 2013 2014 2015 2016
Expenses
Governmental activities:
General government 2,520,815$ 2,489,488$ 2,696,298$ 3,028,716$ 2,985,185$
Public safety 7,892,561 8,282,062 9,259,442 9,311,441 9,308,778
Public works 4,652,620 4,482,973 4,485,246 4,963,704 5,106,651
Community development and planning 884,773 966,245 1,046,299 1,308,924 1,382,121
Leisure services 2,873,496 2,974,290 3,114,213 2,973,687 2,904,715
Interest on long-term debt
Total governmental activities expenses 18,824,265 19,195,058 20,601,498 21,586,472 21,687,450
Business-type activities:
Country club 3,536,139 3,629,120 3,902,131 3,842,660 3,845,547
Total business-type activities 3,536,139 3,629,120 3,902,131 3,842,660 3,845,547
Total primary government expenses 22,360,404$ 22,824,178$ 24,503,629$ 25,429,132$ 25,532,997$
Program Revenues
Governmental activities:
Charges for services:
General government 135,372$ 107,976$ 110,694$ 131,445$ 128,459$
Public safety 440,568 522,121 592,644 537,064 628,529
Public works 386,974 403,447 402,814 514,354 565,011
Community development and planning 816,673 993,059 1,621,471 1,163,875 1,213,032
Leisure services 1,018,883 1,087,182 1,096,021 1,006,382 994,918
Other government
Operating grants and contributions 149,573 91,901 90,520 380,567 365,823
Capital grants and contributions 5,686 233,949 16,098 26,548 229,161
Total governmental activities program revenues 2,953,729 3,439,635 3,930,262 3,760,235 4,124,933
Business-type activities:
Charges for services:
Country club 3,582,760 3,577,446 3,645,706 3,788,852 3,720,573
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues 3,582,760 3,577,446 3,645,706 3,788,852 3,720,573
Total primary government program revenues 6,536,489$ 7,017,081$ 7,575,968$ 7,549,087$ 7,845,506$
Net (Expense)/Revenue
Governmental activities (15,870,536)$ (15,755,423)$ (16,671,236)$ (17,826,237)$ (17,562,517)$
Business-type activities 46,621 (51,674) (256,425) (53,808) (124,974)
Total primary government net expense (15,823,915)$ (15,807,097)$ (16,927,661)$ (17,880,045)$ (17,687,491)$
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes 10,011,748$ 9,981,391$ 10,154,695$ 11,364,888$ 12,253,917$
Local option gas taxes 263,369 261,852 266,147 282,549 288,150
Local option infrastruture surtax
Utility service taxes 2,164,920 2,197,760 2,277,366 2,267,118 2,303,294
Franchise taxes 1,178,598 1,160,780 1,232,669 1,253,139 1,263,812
Sales and use taxes 1,138,097 1,187,221 1,260,617 1,332,209 1,363,954
Unrestricted grants and contributions
Investment earnings 90,968 37,029 16,653 108,794 103,353
Miscellaneous 75,413 38,219 146,360 57,137 60,026
Contributions for Support Our Troops
Gain on disposl of equipment 55,636 30,457 48,114
Transfers
Total governmental activities 14,923,113 14,864,252 15,410,143 16,696,291 17,684,620
Business-type activities:
Investment income 7,451 8,555 10,930 10,393 9,230
Miscellaneous 69,905 36,393
Transfers
Total business-type activities 7,451 78,460 10,930 10,393 45,623
Total primary government 14,930,564$ 14,942,712$ 15,421,073$ 16,706,684$ 17,730,243$
Change in net position
Governmental activities (947,423)$ (891,171)$ (1,261,093)$ (1,129,946)$ 122,103$
Business-type activities 54,072 26,786 (245,495) (43,415) (79,351)
Total primary government (893,351)$ (864,385)$ (1,506,588)$ (1,173,361)$ 42,752$
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
100
2017 2018 2019 2020 2021
3,205,903$ 3,213,886$ 3,312,770$ 3,541,302$ 3,819,733$
9,905,815 10,045,757 10,505,278 12,103,224 11,260,437
5,707,570 5,911,225 5,603,991 5,633,427 5,416,934
1,255,115 1,458,523 1,685,525 1,398,876 1,261,701
3,114,720 3,058,410 3,037,981 2,795,698 2,706,225
266,892 499,929 489,988 520,755 477,717
23,456,015 24,187,730 24,635,533 25,993,282 24,942,747
2,903,224 2,912,523 2,879,376 4,242,674 5,942,293
2,903,224 2,912,523 2,879,376 4,242,674 5,942,293
26,359,239$ 27,100,253$ 27,514,909$ 30,235,956$ 30,885,040$
134,249$ 140,998$ 147,104$ 152,779$ 217,227$
557,265 548,019 687,905 488,393 496,492
547,596 510,732 538,459 511,916 461,166
1,222,464 1,495,298 1,799,878 1,723,949 1,955,663
1,022,175 876,174 899,164 853,581 375,196
377,339 422,255 395,376 717,982 602,032
102,187 9,591 808,193 850,187 21,775
3,963,275 4,003,067 5,276,079 5,298,787 4,129,551
2,946,432 2,946,432 1,406,563 3,768,449 5,903,220
2,946,432 2,254,638 1,406,563 3,768,449 5,903,220
6,909,707$ 6,257,705$ 6,682,642$ 9,067,236$ 10,032,771$
(19,492,740)$ (20,184,663)$ (19,359,454)$ (20,694,495)$ (20,813,196)$
43,208 (657,885) (1,472,813) (474,225) (39,073)
(19,449,532)$ (20,842,548)$ (20,832,267)$ (21,168,720)$ (20,852,269)$
13,091,985$ 15,003,141$ 16,185,283$ 16,991,314$ 17,629,392$
305,700 302,208 307,130 273,428 283,233
552,600 879,565 922,937 869,852 1,011,627
2,413,679 2,511,877 2,521,954 2,558,092 2,539,175
1,306,997 1,294,280 1,352,464 1,304,936 1,354,110
1,371,890 1,413,335 1,448,423 1,345,508 1,548,330
126,926 376,227 811,915 502,335 81,338
150,698 268,471 80,266 104,618 181,109
6,843 74,449 21,384
(3,528,697)
19,327,318 22,123,553 23,630,372 23,950,083 21,121,001
10,274 13,874 804 134
3,528,697
10,274 13,874 804 3,528,831
19,337,592$ 22,137,427$ 23,631,176$ 23,950,083$ 24,649,832$
(165,422)$ 1,938,890$ 4,270,918$ 3,255,588$ 307,805$
53,482 (644,011) (1,472,009) (474,225) 3,489,758
(111,940)$ 1,294,879$ 2,798,909$ 2,781,363$ 3,797,563$
101
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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
Unassigned
Total all other governmental funds 2,177,483$ 1,847,269$ 1,212,502$ 1,812,646$ 2,158,054$
2017 2018 2019 2020 2021
General Fund
Nonspendable 183,220$ 1,240,793$ 2,789,824$ 2,325,778$ 2,102,739$
Restricted 781,756 47,338 61,227 79,730 87,342
Committed
Assigned 316,266 407,862 582,008 176,865 494,163
Unassigned 11,811,468 7,547,415 8,177,758 11,622,285 13,892,476
Total general fund 13,092,710$ 9,243,408$ 11,610,817$ 14,204,658$ 16,576,720$
All other Governmental Funds
Restricted 13,988,744$ 11,826,016$ 464,309$ 906,759$ 1,331,574$
Assigned
Special revenue funds 388,981 3,506 3,507 263,798 252,000
Capital projects funds 1,670,196 5,398,245 3,727,482 1,151,011 1,010,681
Unassigned (114,279) (421,599) -
Total all other governmental funds 16,047,921$ 17,113,488$ 3,773,699$ 2,321,568$ 2,594,255$
VILLAGE OF NORTH PALM BEACH
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
102
VILLAGE OF NORTH PALM BEACH
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
Fiscal Year
2012 2013 2014 2015 2016
Revenues:
Taxes 13,618,635$ 13,601,783$ 13,930,877$ 15,167,694$ 16,109,173$
Licenses and Permits 810,390 803,337 1,344,653 947,158 1,235,782
Intergovernmental 1,591,678 1,817,603 1,688,608 1,758,246 1,765,836
Charges for services 1,966,179 2,141,437 2,320,305 2,231,673 2,364,013
Fines and forfeitures 140,610 131,524 117,869 128,235 91,534
Investment earnings 90,968 37,029 16,653 108,794 103,353
Miscellaneous 130,293 207,076 258,086 122,107 191,250
Total revenues 18,348,753 18,739,789 19,677,051 20,463,907 21,860,941
Expenditures:
General government 2,328,568 2,346,281 2,541,546 2,904,553 2,876,521
Public safety 7,583,018 7,947,221 8,947,627 8,966,077 9,129,947
Public works 3,886,698 3,733,977 3,773,689 4,255,636 4,266,749
Community development 844,748 933,117 1,004,642 1,270,399 1,351,061
Leisure services 2,374,748 2,491,559 2,644,598 2,514,495 2,448,164
Other government
Capital outlay 495,254 1,110,051 1,117,234 1,530,430 1,209,249
Debt service
Principal payments
Interest paid on debt
Total expenditures 17,513,034 18,562,206 20,029,336 21,441,590 21,281,691
Excess of revenues over (under) expenditures 835,719 177,583 (352,285) (977,683) 579,250
Other financing sources (uses)
Transfers in 500,000 265,000 323,000 2,091,246 1,503,750
Transfers out (500,000) (265,000) (323,000) (2,091,246) (1,503,750)
Capital lease
Proceeds from debt issuance
Miscellaneous
Total other financing sources (uses)
Net change in fund balances 835,719$ 177,583$ (352,285)$ (977,683)$ 579,250$
Debt service as a percentage of noncapital
expenditures -----
103
2017 2018 2019 2020 2021
17,118,361$ 19,111,506$ 20,366,831$ 21,127,770$ 21,805,910$
997,656 1,222,594 1,522,913 1,320,361 1,574,639
2,417,809 2,679,389 2,910,395 3,857,230 3,189,191
2,321,298 2,200,860 2,399,174 2,169,814 1,726,853
124,395 100,140 100,188 197,343 154,410
126,926 376,227 811,915 502,335 81,338
157,063 412,513 510,688 160,147 296,245
23,263,508 26,103,229 28,622,104 29,335,000 28,828,586
2,970,223 3,059,623 3,275,570 3,265,210 3,507,052
9,166,060 9,669,361 10,350,598 10,418,956 10,853,605
4,882,159 5,313,834 5,255,606 5,300,077 5,117,986
1,190,759 1,429,764 1,532,428 1,382,443 1,292,216
2,591,866 2,613,664 2,664,689 2,305,309 1,695,054
2,123,742 5,507,617 15,487,329 5,094,135 3,528,772
680,000 882,777 934,496 1,106,148
613,101 488,786 502,193 491,022
22,924,809 28,886,964 39,937,783 29,202,819 27,591,855
338,699 (2,783,735) (11,315,679) 132,181 1,236,731
1,503,750 4,963,307 407,000 844,475 625,280
(1,503,750) (4,963,307) (407,000) (844,475) (899,280)
343,299 1,009,529 1,682,018
15,000,000
15,000,000 343,299 1,009,529 1,408,018
15,338,699$ (2,783,735)$ (10,972,380)$ 1,141,710$ 2,644,749$
-5.53%5.70%5.90%6.53%
104
Fiscal Year
Ended
Sept 30,
Tax Roll
Year Residential Property
Commercial
Property
Personal
Property
Total Net Market -
Assessed Value
Total Direct
Tax Rate
2012 2011 1,265,549,795 189,284,601 33,303,512 1,488,137,908 6.9723
2013 2012 1,254,302,880 195,770,816 30,033,151 1,480,106,847 6.9723
2014 2013 1,287,481,785 203,512,929 33,792,851 1,524,787,565 6.8731
2015 2014 1,355,969,888 214,484,701 34,077,944 1,604,532,533 7.3300
2016 2015 1,453,735,176 232,020,936 36,939,006 1,722,695,118 7.3300
2017 2016 1,545,192,840 259,097,141 40,181,846 1,844,471,827 7.3300
2018 2017 1,804,338,668 279,488,569 35,855,827 2,119,683,064 7.3300
2019 2018 1,897,471,175 297,293,001 38,440,924 2,233,205,100 7.5000
2020 2019 1,991,785,138 315,226,821 37,569,787 2,344,581,746 7.5000
2021 2020 2,063,558,234 330,847,141 38,837,770 2,433,243,145 7.5000
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
Real Property
VILLAGE OF NORTH PALM BEACH
NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
105
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
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 7.5120 4.9277 2.0974 21.8671
2017 2016 7.3300 7.0700 4.9142 1.9453 21.2595
2018 2017 7.3300 6.7690 4.9023 1.7818 20.7831
2019 2018 7.5000 4.8980 6.5720 1.6920 20.6620
2020 2019 7.5000 7.1640 4.8580 1.6873 21.2093
2021 2020 7.5000 7.0100 4.8124 1.6753 20.9977
Note:All millage rates are based on $1 for every $1,000 of assessed value.
Source:North Palm Beach: Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments
(1)Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
Overlapping Rates (1)
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
106
Percentage Percentage
of Total of Total
Village Net Village Net
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayers Value Rank Value Value Rank Value
Olen Residential Realty 36,837,729 1 1.51%16,779,214 1 1.13%
SHM Old Port Cove LLC 33,327,910 2 1.37%
Sanctuary Bay Trust Corporation 29,057,403 3 1.19%13,509,049 4 0.91%
Florida Power & Light 24,134,860 4 0.99%14,776,425 3 0.99%
Pearland RJR LLC 17,347,786 5 0.71%
JB Shoppes LLLP 16,499,921 6 0.68%
New Country Motor Cars 15,311,342 7 0.63%10,658,192 5 0.72%
SHM North Palm Beach LLC 12,757,744 8 0.52%
Palm Beach Autoplex LLC 9,783,465 9 0.40%
Chouest Gary 9,611,888 10 0.40%
Old Port Cove Equities, INC 16,815,716 2 1.13%
Crystal Tree Property Owners 8,500,000 6 0.57%
CF02 Palm Beach III LP 7,000,000 7 0.47%
Old Port Cove Holding, INC 6,662,012 8 0.45%
Bozzuto, Michael A 6,334,818 9 0.43%
Village Shoppers at US 1LLC 5,770,298 10 0.39%
Total 204,670,048$ 8.40%106,805,724$ 7.19%
Source: Palm Beach Country Appraiser
VILLAGE OF NORTH PALM BEACH
PRINCIPAL PROPERTY TAXPAYERS
2021 & 2012 Presented
2021 2012
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
107
Fiscal Year Total Taxes Collections in
Ending Tax Roll Levied for Percent Subsequent Percent
Sept 30,Year Fiscal Year Amount of Levy Years Amount of Levy
2012 2011 10,424,715 9,992,145 95.85%15,616 10,007,761 96.00%
2013 2012 10,358,172 9,948,550 96.05%36,366 9,984,916 96.40%
2014 2013 10,503,598 10,097,763 96.14%57,493 10,155,256 96.68%
2015 2014 11,761,226 11,350,738 96.51%14,777 11,365,515 96.64%
2016 2015 12,627,355 12,197,736 96.60%57,133 12,254,869 97.05%
2017 2016 13,519,978 13,051,272 96.53%41,267 13,092,539 96.84%
2018 2017 15,537,277 14,999,572 96.54%3,390 15,002,962 96.56%
2019 2018 16,749,038 16,176,654 96.58%6,223 16,182,877 96.62%
2020 2019 17,584,371 16,980,948 96.57%7,965 16,988,913 96.61%
2021 2020 18,249,331 17,608,184 96.49%21,233 17,629,417 96.60%
Source:Palm Beach Country Property Appraiser
of the Levy to Date
Total Collections
Collected within
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN CALENDAR YEARS
the Fiscal Year
108
VILLAGE OF NORTH PALM BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
Business-type
Activities
Fiscal Year Percent of
Ended Loans Capital Loans Capital Median Personal Per
Sept 30,Payable Leases Payable Leases Total Income (1)Capita
2012 - - 3,608,294 106,933 3,715,227 0.50%303.51
2013 - - 3,357,875 396,055 3,753,930 0.49%305.37
2014 - - 3,096,925 274,471 3,371,396 0.46%266.62
2015 - - 2,824,987 147,767 2,972,754 0.37%234.94
2016 - - 2,684,913 - 2,684,913 0.35%212.20
2017 15,000,000 - 2,247,088 - 17,247,088 1.85%1,292.69
2018 14,320,000 - 1,939,366 - 16,259,366 1.79%1,229.26
2019 13,515,000 265,522 1,618,633 - 15,399,155 1.74%1,161.32
2020 12,680,000 1,175,555 1,284,668 - 15,140,223 1.70%1,135.63
2021 11,815,000 2,616,425 936,310 - 15,367,735 1.55%1,173.47
Note:Details regarding the Village's outstanding debt may be found in the notes to the
financial statements.
(1)See the Schedule of Demographic and Economic Statistics on page 103 for personal income and population data.
Governmental Activities
LAST TEN FISCAL YEARS
109
Percentage Amount
Net Applicable to Applicable to
Debt the Village of the Village of
Outstanding North Palm Beach (1) North Palm Beach
Debt repaid with property taxes:
Palm Beach County 39,478$ 1.16%458$
Palm Beach County School Board 5,379 1.10%59
Other debt:
Palm Beach County 684,231 1.16%7,937
Palm Beach County School Board
Subtotal, overlapping debt 8,454
Village of North Palm Beach Direct Debt 14,431,425
Total direct and overlapping debt 14,439,879$
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.
VILLAGE OF NORTH PALM BEACH
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
SEPTEMBER 30, 2021
Unaudited
Government Unit
110
VILLAGE OF NORTH PALM BEACH
Pledged - Revenue Coverage
Country Club Bonds
Last Ten Fiscal Years
Unaudited
Required
Fiscal Gross Operating Debt
Year Revenues (1) Expenses (2)Net Revenue Service Coverage (3)
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
2017 2,956,706 2,472,812 483,894 394,900 1.23
2018 2,268,512 2,227,913 40,599 394,900 0.10
2019 1,407,367 2,443,701 (1,036,334) 394,900 -2.62
2020 3,769,907 3,504,881 265,026 394,900 0.67
2021 5,903,220 4,964,502 938,718 394,900 2.38
Note:The Non-Ad Valorem Revenue Notes, Series 2017 do not have any pledged revenues.
(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.
111
Per Palm Beach
Median Capita County
Calendar Personal Personal Unemployment
Year Population (1)Income (1)Income (1)Rate (2)
2012 (estimate)12,241 ***62,121 ****49,117 **5.29
2013 (estimate)12,293 ***59,778 ****42,830 **4.66
2014 (estimate)12,645 ***63,349 ****43,120 **3.92
2015 (estimate)12,653 ***61,057 ****43,120 **3.15
2016 (estimate)12,817 ***61,653 ****45,110 **2.10
2017 (estimate)13,342 ***69,718 ****46,160 **2.70
2018 (estimate)13,227 ***68,833 ****46,160 **1.79
2019 (estimate)13,260 ***66,898 ****48,240 **1.24
2020 (estimate)13,332 ***66,898 ****48,240 **1.15
2021 (estimate)13,096 ***75,510 ****52,970 **4.38
Sources:Business Development Board
US Census Bureau
**Village of North Palm Beach Unemployment Rate for 2021 presented
***North Palm Beach Median Personal Income for 2021 presented
****West Palm Beach/Ft Lauderdale/Miami Mean Income data presented
Note: (1)All information available at the current time is presented.
VILLAGE OF NORTH PALM BEACH
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Unaudited
112
747157
Percentage Percentage
of Total of Total
Employer Employees Employment Employees Employment
Palm Beach Country School Board 22,600 3.02%21,495 3.47%
State Government 10,030 1.34%0.00%
Federal Government 6,809 0.91%0.00%
Tenet Health Care Corp 6,505 0.87%6,100 0.98%
Palm Beach County Government 5,686 0.76%11,381 1.84%
NextEra Energy (Florida Power & Light) 5,119 0.69%3,635 0.59%
Florida Alantic University 3,133 0.42%2,706 0.44%
Boca Raton Regional Hospital (2)3,052 0.41%2,250 0.36%
Veterans Health Administration 3,000 0.40%0.00%
Hospital Corporation of America (HCA) (1)2,806 0.38%2,714 0.44%
The Breakers Hotel 2,300 0.31%0.00%
Bethesda Memorial Hospital 2,282 0.31%2,391 0.39%
Office Depot 2,000 0.27%2,250 0.36%
Florida Crystal Corp.2,000 0.27%0.00%
City of Boca Raton 1,810 0.24%0.00%
Jupiter Medical Center 1,800 0.24%0.00%
City of West Palm Beach 1,636 0.22%0.00%
G4s (Wachenhut Corp)3,000 0.48%
82,568 11.06%57,922 9.35%
* 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.
Notes:
(1) Formerly Columbia Palm Beach Health Care Systems, Inc
(2) Formerly Boca Raton Community Hospital
*** Most current data available in BDP.org
Source: Business Development Board of Palm Beach County, floridajobs.org
VILLAGE OF NORTH PALM BEACH
PRINCIPAL EMPLOYERS
2021 & 2012 Presented
2021 2012
113
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Number of Employees:
General Government
Village Manager
Full-Time 2 2 2 2 2 4 4 4 4 4
Part-Time 0 0 0 0 0 1 1 1 1 0
Information Technology
Full-Time 3 3 3 3 3 3 3 3 3 3
Part-Time 0 0 0 0 0 0 0 0 1 1
Human Resources
Full-Time 2 2 2 2 2 2 2 2 2 2
Part-Time 0 0 0 1 2 2 2 2 2 2
Village Clerk - Full-Time 3 3 3 3 3 3 3 3 3 3
Finance
Full-time 5 5 5 7 7 5 6 6 6 6
Part-Time 1 1 1 0 0 1 0 0 0 0
Public Works
Full-time 37 37 37 35 34 36 37 37 37 36
Part-Time 0 0 0 0 0 0 0 2 2 2
Police & Fire
Full-time 0 0 0 0 0 0 0 0 0 0
Part-Time 0 0 0 0 0 0 0 0 0 0
Police
Full-time 43 43 43 36 36 36 38 38 38 38
Part-Time 12 13 13 13 13 13 15 15 15 15
Fire Rescue
Full-time 24 24 24 24 24 24 24 24 24 24
Part-Time 0 0 0 0 0 0 0 0 0 1
Community Development and Planning
Full-time 8 8 10 11 12 13 14 15 15 14
Part-Time 2 2 1 0 0 1 1 1 0 2
Leisure Services
Library
Full-time 6 6 6 7 7 7 7 7 7 7
Part-Time 10 10 10 9 9 9 7 7 9 9
Recreation
Full-time 6 6 6 6 6 6 6 6 5 5
Part-Time 43 43 43 43 43 43 42 42 16 17
Pool/Tennis
Full-time 0 0 0 0 0 0 0 0 2 1
Part-Time 0 0 0 0 0 0 0 0 22 29
Other Government - Country Club
Full-time 5 6 8 8 8 5 5 6 7 9
Part-Time 56 54 65 65 65 27 27 27 28 26
268 268 282 275 276 241 244 248 249 256
* Variance exists due to the employment of seasonal and part-time employees.
Source:Village of North Palm Beach Budget Report
Total Number of Employees Budgeted FY Ending
VILLAGE OF NORTH PALM BEACH
LAST TEN FISCAL YEARS (*)
Full-Time Equivalent Village Government Employees by Function
114
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
FUNCTION/PROGRAM
PUBLIC WORKS
Sanitation (Tons of Refuse Collected)10,065 10,720 10,720 11,167 12,556 12,980 12,624 12,330 12,059 12,398
No. of collection units for solid waste (residential) 7,076 7,471 7,616 7,618 7,614 7,614 7,632 7,632 7,627 7,627
Number of vehicles maintained 98 111 98 98 92 85 89 88 89 90
Number of repair overlays completed (miles)- - - - - - - - - -
POLICE
Number of arrests by police officers 211 216 238 293 247 233 192 134 150 150
Number of traffic citations issued 2,566 1,254 2,799 3,407 2,494 1,974 2,014 1,184 853 2,038
FIRE RESCUE
EMS average response times (minutes)5.26 5.11 5.10 5.05 5.26 5.21 5.37 4.50 5.42 5.44
Number of EMS calls 1,326 1,296 1,110 1,499 1,601 1,746 1,550 1,577 1,452 1,620
COMMUNITY DEVELOPMENT & PLANNING
Bldg Dept - Number of Permits,Subpermits and certificates 1,835 2,480 2,103 3,920 4,242 4,665 2,173 2,737 4,832 5,103
Number of code enforcement violations/cases 817 790 887 769 680 **516/357**726/317 885 941 327
Number of code violations brought to board/magistrate
(Calendar Yr End)100 62 28 56 42 98 246 263 183***173
RECREATION
Number of community events presented 49 37 53 57 48 40 38 24 8 19
Number of registrants in athletic programs 1,311 2,074 1,439 1,389 1,174 1,109 1,174 1,077 120***275
LIBRARY
Library - Number of Volumes 43,340 44,966 46,546 47,339 *57,935 41,161 43,992 45,446 39,886 33,315
OTHER GOVERNMENT
Country Club
Number of Golf Members 283 262 250 255 265 271 178 198 278 263
Number of Tennis/Pool Members 162 190 194 193 183 183 159 182 241 786
Source: Village of North Palm Beach
*In FY 2016 Number of Volumes included not only printed items, but media items as well.
**Includes only the number of violations/cases opened and not a reflection of the total number of open violations as was reported for years prior to 2017
***Variances due to COVID-19
Number of code violations not provided by department at the time of data collection
VILLAGE OF NORTH PALM BEACH
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
115
2012 2013 2014 2015 2016*2017 2018 2019 2020 2021
Function/Program:
General Government
No. of General Government Buildings 23 23 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 5.40
Miles of Streets 36.00 36.00 36.00 36.00 32.30**32.30 32.30 32.30 32.30 32.30
Number of Street Lights (within corp surroundings)513 513 513 513 513 628****628 628 628 628
Public Safety
Fire:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Firemen& Officers 0 0 0 0 0 0 0 0 0 0
Number of Firemen/Paramedics/EMTs 22 22 22 22 23 24 21 23 18 17
Number of Fire Captains 0 0 0 0 0 0 0 0 3 3
Police/EMS Protection:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Policemen & Officers 28 28 28 28 28 28 30 28 30 24
Number of Police Captains 2 2 2 2.5 2.5 2.5 2.5 2.5 2.5 1
Leisure Services
Recreation/Tennis/Pool
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)43,340 44,966 46,546 47,339 48,913 33,502 36,009 37,429 33,672 28,575
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 1 1 1 1 1 1***1***1 1 1
Snack Bar 1 1 1 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 of NPB Village centerline miles from the report is presented going forward
***Restaurant services closed on 10/01/2016- Reopened in 2019
****173 Village owned/455 FPL owned
VILLAGE OF NORTH PALM BEACH
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
116
OTHER REPORTS
117
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
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, 2021, 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 4, 2022.
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) as a basis
for designing 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.
118
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 financial statements.
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 4, 2022
119
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
We have audited the financial statements of the Village of North Palm Beach, Florida, as of and for
the fiscal year ended September 30, 2021, and have issued our report thereon dated March 4, 2022.
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 Auditor General.
Other Reporting Requirements
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 the Financial Statements Performed in
Accordance with Government Auditing Standards and Independent Accountant’s Report on an
examination conducted in accordance with AICPA Professional Standards, AT-C Section 315,
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor
General. Disclosures in those reports, which are dated March 4, 2022, should be considered in
conjunction with this management letter.
Prior Audit Findings
Section 10.554(1)(i)1., 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
financial audit report. There are no prior year findings that have not been corrected.
120
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 and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate 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 to identify 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, 2021.
Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied
financial condition assessment procedures for the Village of North Palm Beach, Florida. 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 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.
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any
recommendations to improve financial management. In connection with our audit, we did not have
any such recommendations.
Special District Component Units
Section 10.554(1)(i)5.c, Rules of the Auditor General, requires, if appropriate, that we
communicate the failure of a special district that is a component unit of a county, municipality,
or special district, to provide 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.
Additional Matters
Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate 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 warrants the
attention of those charged with governance. In connection with our audit, we did not note any such
findings.
121
Single Audits
The Village expended less than $750,000 of federal awards and less than $750,000 of state
financial assistance for the fiscal year ended September 30, 2021, and was not required to have a
federal single audit or a state single audit.
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, Federal and other granting agencies, the audit committee, the Village Council,
and applicable management, and is not intended to be and should not be used by anyone other than
these specified parties.
March 4, 2022
West Palm Beach, Florida
122
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
We have examined the Village of North Palm Beach, Florida’s compliance with Section 218.415,
Florida Statutes during the year ended September 30, 2021. Management of the Village of North Palm
Beach, Florida is responsible for the Village of North Palm Beach, Florida’s compliance with the
specified requirements. Our responsibility is to express an opinion on the Village of North Palm Beach,
Florida’s compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Village of North Palm Beach, Florida
complied, in all material respects, with the specified requirements referenced above. An examination
involves performing procedures to obtain evidence about whether the Village of North Palm Beach,
Florida complied with the specified requirements. The nature, timing, and extent of the procedures
selected depend on our judgement, including an assessment of the risk of material noncompliance,
whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to
provide 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 the specified requirements.
In our opinion, the Village of North Palm Beach, Florida complied, in all material respects, with Section
218.415, Florida Statutes for the year ended September 30, 2021.
This report is intended solely for the information and use of the Legislative Auditing Committee,
members of the Florida Senate and Florida House of Representatives, 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 4, 2022