03-16-2023 VC SP-A with attachments
VILLAGE OF NORTH PALM BEACH
SPECIAL SESSION AGENDA
VILLAGE HALL COUNCIL CHAMBERS THURSDAY, MARCH 16, 2023
501 U.S. HIGHWAY 1 7:00 PM
Deborah Searcy David B. Norris Susan Bickel Darryl C. Aubrey Mark Mullinix
Mayor Vice Mayor President Pro Tem Councilmember Councilmember
Chuck Huff Leonard G. Rubin Jessica Green
Village Manager Village Attorney Village Clerk
INSTRUCTIONS FOR “WATCH LIVE” MEETING
To watch the meeting live please go to our website page (link provided below) and click the “Watch
Live” link provided on the webpage:
https://www.village-npb.org/CivicAlerts.aspx?AID=496
ROLL CALL
INVOCATION - MAYOR
PLEDGE OF ALLEGIANCE - VICE MAYOR
AWARDS AND RECOGNITION
APPROVAL OF MINUTES
COUNCIL BUSINESS MATTERS
1. ADMINISTRATION OF COUNCILMEMBER OATHS
Susan Bickel, Group 2 David B. Norris, Group 4
2. NOMINATION OF OFFICERS - MAYOR, VICE MAYOR, PRESIDENT PRO TEM
3. RESOLUTION APPOINTING COUNCIL OFFICERS
4. ADMINISTRATION OF OFFICER OATHS - MAYOR, VICE MAYOR, PRESIDENT PRO TEM
STATEMENTS FROM THE PUBLIC, PETITIONS AND COMMUNICATIONS
Members of the public may address the Council concerning items on the Consent Agenda or any non agenda item
under Statements from the Public. Time Limit: 3 minutes
Members of the public who wish to speak on any item listed on the Regular Session or Workshop Session Agenda
will be called on when the issue comes up for discussion. Time Limit: 3 minutes
Anyone wishing to speak should complete a Public Comment Card (on the table at back of Council Chamb ers) and
submit it to the Village Clerk prior to the beginning of the meeting.
Special Session Agenda, March 16, 2023 Page 2 of 2
DECLARATION OF EX PARTE COMMUNICATIONS
PUBLIC HEARINGS AND QUASI-JUDICIAL MATTERS
5. 1ST READING OF ORDINANCE 2023-04 - COUNTRY CLUB BUDGET AMENDMENT Consider a
motion to adopt on first reading Ordinance 2023-04 amending the Adopted Country Club Budget for
Fiscal Year 2023 to utilize $200,000 in fee revenues to fund Capital Projects at the North Palm Beach
Country Club Golf Course.
CONSENT AGENDA
The Consent Agenda is for the purpose of expediting issues of a routine or pro -forma nature. Councilmembers
may remove any item from the Consent Agenda, which would automatically convey that item to the Regular
Agenda for separate discussion and vote.
6. RESOLUTION – Approving a Federally-Funded Subaward and Grant Agreement with the State of
Florida Division of Emergency Management for the receipt of FEMA Grant Funds; and authorizing
the Village Manager to execute the Agreement on behalf of the Village.
OTHER VILLAGE BUSINESS MATTERS
7. RESOLUTION – ACCEPTANCE OF FY 2022 AUDIT REPORT Consider a motion to adopt a
resolution accepting the Annual Comprehensive Financial Report prepared by the Village Auditor for
the Fiscal Year ending September 30, 2022; and authorizing its filing with the State.
COUNCIL AND ADMINISTRATION MATTERS
MAYOR AND COUNCIL MATTERS/REPORTS
VILLAGE MANAGER MATTERS/REPORTS
REPORTS (SPECIAL COMMITTEES AND ADVISORY BOARDS)
ADJOURNMENT
If a person decides to appeal any decision by the Village Council with respect to any matter considered at the Village Counci l meeting,
he will need a record of the proceedings, and for such purpose he may need to ensure that a verbatim record of the proceedings is made,
which record includes the testimony and evidence upon which the appeal is to be based (F.S. 286.0105).
In accordance with the Americans with Disabilities Act, any person who may require special accommodation to participate in this meeting
should contact the Village Clerk’s office at 841-3355 at least 72 hours prior to the meeting date.
This agenda represents the tentative agenda for the scheduled meeting of the Village Council. Due to the nature of governmental duties
and responsibilities, the Village Council reserves the right to make additions to, or deletions from, the items contained in this agenda.
RESOLUTION 2023-___
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, APPOINTING THE MAYOR,
VICE MAYOR AND PRESIDENT PRO TEM FOR THE UPCOMING YEAR;
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Article III, Section 3 of the Village Charter provides that the Council shall elect from
among its members a Mayor, a Vice Mayor, and a President Pro Tem to serve at the pleasure of the
Council; and
WHEREAS, the election of the Mayor, Vice Mayor and President Pro Tem shall be conducted
annually at the first regular Council meeting after the Village election.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, as follows:
Section 1. The Village Council hereby elects from among its membership the following persons
to serve as Mayor, Vice Mayor, and President Pro Tem of the Village Council of the Village of North
Palm Beach:
_____________________
Mayor
____________________
Vice Mayor
_____________________
President Pro Tem
Section 2. The above-named Mayor, Vice Mayor, and President Pro Tem shall hold office until
their respective successors shall be elected in accordance with the provisions of the Village Charter.
Section 3. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED THIS _____ DAY OF ________, 2023.
(Village Seal)
MAYOR
ATTEST:
VILLAGE CLERK
VILLAGE OF NORTH PALM BEACH
COUNTRY CLUB – GOLF OPERATIONS
TO: Honorable Mayor and Council
THRU: Chuck Huff, Village Manager
FROM: Beth Davis, Country Club General Manager
Allan Bowman, Head Golf Professional
DATE: March 16, 2023
SUBJECT: ORDINANCE – 1st Reading – Country Club Budget Amendment for
additional Capital Projects at the Golf Course
Village Staff is requesting Council consideration and adoption of an Ordinance amending the Country Club
Budget to provide funding for additional capital projects at the Country Club Golf Course.
Background / Project Scope:
Pond Bank Stabilization is a continuation of protecting the ponds from erosion caused by heavy rains
and wind due to the sandy soil. Capital project monies would be expended for the following:
Hole # 13 greenside drainage and re-grading/sodding of the area
o addressing an elevation drainage issue that will allow for better playing conditions on the
golf course
Hole # 14 addition new tee (white tee)
o addition of a tee that has been requested from the Golf Advisory Board and has been
approved with the Nicklaus Design Group
Hole # 5 addition of tee and # 7 plus enlargement of an existing tee
o addresses wear and tear issues that occur due to increased rounds of golf
Lesson Tee enlargement (location back of the driving range)
Pond Bank Stabilization project for pond located between Holes # 10 and # 15
The above items would include stripping turf, importing a higher-grade soil, prepping and installing sod.
These projects are estimated at $185,000, with an additional $15,000 for any contingency.
Golf Revenues:
Golf Fee Revenues have far surpassed both our target budget and the prior year’s numbers during the
first 5 months of the current fiscal year. Some small tweaks to the revenue stream have resulted in
much larger gains than anticipated.
FYE 2021 FYE 2022 FYE 2023 Budget Prior Yr.
Actual Actual Actual Budget Variance Variance
October $131,928.26 $220,822.39 $267,996.18 $214,198.77 $53,797.41 $47,173.79
November $205,758.40 $263,467.45 $293,444.56 $255,564.69 $37,879.87 $29,977.11
December $289,857.95 $325,424.05 $365,342.89 $315,662.88 $49,680.01 $39,918.84
January $357,207.30 $394,863.01 $522,388.52 $383,019.01 $139,369.51 $127,525.51
February $335,279.43 $438,243.64 $465,000.00 $425,098.42 $51,487.73 $ 38,342.51
Total $1,320,031.34 $1,642,820.54 $1,925,758.30 $1,593,543.77 $332,214.53 $282,937.76
Golf Rounds:
Golf Rounds are up significantly at North Palm Beach since the last renovation (2018) and the
construction of the new clubhouse. While this is positive for the course, it also creates some challenges
with compaction as we have a limited amount of turf. Our existing tee size on Holes # 5 and # 7 cannot
handle the increased volume of rounds – play is up approximately 27% since the course re-opened.
(poor turf conditions result from the compaction and lack off tee space). The instruction driving range
tee expansion and improvement also allows for the Club’s continued growth in teaching and promoting
the game of golf to our residents and customers.
Rounds played averaged:
FYE 2010 – 2015 = 44,150
FYE 2016 – 2019 = 40,100
FYE 2020 = 47,338
FYE 2021 = 54,381
FYE 2022 = 56,810
FYE 2023 = + 998 rounds from 2022
Nicklaus/Vendor Support:
All of the design enhancements have been addressed and approved with Chris Cochran of the Nicklaus
Design Group. He has worked closely with the golf course superintendents and head golf professional
to adjust the areas that are needed for our continual growth and improvement.
The Contract with BrightView to complete the work will be placed on the same agenda as the second
reading of the Budget Amendment Ordinance. It is imperative that BrightView (approved by the
Nicklaus Design Team) complete the work as they will be responsible for the daily maintenance of
project upon completion. Additionally, the company has shown with their past projects to have superior
knowledge and experience and most importantly will allow us to maintain the status of a Nicklaus
Signature Designed Golf Course.
Budget Amendment:
Fund Account Description Use Source
Country Club L2100-05230 Golf Fees $200,000
Country Club L8045-66210 Construction & Major Renovation $200,000
Total $200,000 $200,000
The attached Ordinance has been prepared and reviewed for legal sufficiency by the Village Attorney.
Recommendation:
Village Staff recommends Council consideration and adoption on first reading of the attached
Ordinance authorizing the Mayor and Village Clerk to execute the required budget amendment
to fund the golf capital projects in accordance with Village policies and procedures.
Page 1 of 2
ORDINANCE NO. 2023-____ 1
2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH 3
PALM BEACH, FLORIDA, AMENDING THE ADOPTED COUNTRY CLUB 4
BUDGET FOR FISCAL YEAR 2023 TO UTILIZE $200,000 IN FEE REVENUES 5
TO FUND CAPITAL PROJECTS AT THE NORTH PALM BEACH COUNTRY 6
CLUB GOLF COURSE; PROVIDING FOR CONFLICTS; PROVIDING FOR 7
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. 8
9
WHEREAS, Village Staff has identified a number of capital projects to be completed at the Country 10
Club Golf Course due to a substantial increase in the number of rounds at the course; and 11
12
WHEREAS, because the Golf Operations revenues have exceeded the amount anticipated and 13
budgeted, Village Staff is requesting a budget amendment to transfer monies from the Golf Fees 14
Account to the Golf Construction and Major Renovation Account; and 15
16
WHEREAS, because this amendment increases the total amount of the budget, this transfer must be 17
accomplished by ordinance as required by Section 166.241, Florida Statutes; and 18
19
WHEREAS, the Village Council determines that the adoption of this budget amendment is in the best 20
interests of the residents and citizens of the Village of North Palm Beach. 21
22
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM 23
BEACH, FLORIDA as follows: 24
25
Section 1. The foregoing recitals are hereby ratified as true and correct and incorporated herein. 26
27
Section 2. The Village Council hereby amends the adopted Village of North Palm Beach Country 28
Club budget for Fiscal Year 2023 as follows: 29
30
Budget Amendment: 31
32
Fund Account Description Use Source
Country Club L2100-05230 Golf Fees $200,000
Country Club L8045-66210 Construction & Major Renovation $200,000
Total $200,000 $200,000
33
Section 3. The Mayor and Village Clerk are hereby authorized and directed to execute the budget 34
amendment for and on behalf of the Village of North Palm Beach. 35
36
Section 4. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for any 37
reason held by a court of competent jurisdiction to be unconstitutional, inoperative or void, such 38
holding shall not affect the remainder of this Ordinance. 39
40
Section 5. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict 41
herewith are hereby repealed to the extent of such conflict. 42
43
Section 6. This Ordinance shall be effective immediately upon adoption. 44
Page 2 of 2
PLACED ON FIRST READING THIS _____ DAY OF ________________, 2023. 1
2
PLACED ON SECOND, FINAL READING AND PASSED THIS ________ DAY OF 3
___________, 2023. 4
5
6
(Village Seal) ______________________________ 7
MAYOR 8
9
10
ATTEST: 11
12
13
VILLAGE CLERK 14
15
APPROVED AS TO FORM AND 16
LEGAL SUFFICIENCY: 17
18
19
VILLAGE ATTORNEY 20
BrightView Golf Improvements Proposal
To: Allan Bowman
Company: Village of North Palm Beach
Date: 2.14.23
Reference: Summer 2023 Improvements,
DESCRIPTION QUANTITY UNIT UNIT PRICE AMOUNT
mobilization, fuel, project management 1 ea 8,100.00$ 8,100.00$
#13 greenside drainage 100 lf 52.35$ 5,235.00$
#5,7,14,PR tee-strip, grade, prep, sod 25,750 sf 1.83$ 47,122.50$
#10 lake bank stabiliztion (includes dirt import and sod)1,000 lf 123.42$ 123,420.00$
#9 & #18 lake bank stabilization (includes dirt import and sod)1,000 lf 123.42$ 123,420.00$
Total 307,297.50$
NOTES:$183,877.50
Prices subject to change by vendor at time of purchase
4993 S.W. MARTIN COMMONS WAY
PALM CITY, FL 34990
(772) 285-1871
VILLAGE OF NORTH PALM BEACH
FINANCE DEPARTMENT
TO: Honorable Mayor and Council
THRU: Charles Huff, Village Manager
FROM: Samia Janjua, Director of Finance
DATE: March 16, 2023
SUBJECT: RESOLUTION – Approval of Federally-Funded Subaward and Grant Agreement
with the Florida Division of Emergency Management for receipt of FEMA Grant
Funds for costs and damages incurred during Hurricane Ian
In order to receive federal disaster grant funds from the Federal Emergency Management Agency
(“FEMA”) for costs and damages incurred by the Village as a result of Hurricane Ian, the Village is
required to execute a Federally-Funded Subaward and Grant Agreement (“Agreement”) with the Florida
Division of Emergency Management (“FDEM”). FDEM acts as a pass-through entity for the Village’s
receipt of such funds.
The Agreement requires the Village to certify that it has the legal authority to receive the funds and that
the Village’s governing body has authorized the execution and acceptance of the Agreement. It further
requires the Village to certify that the person executing the Agreement has the authority to legally execute
and bind the Village to the terms of the Agreement.
The attached Resolution accepts the terms of the Agreement. Furthermore, in the interest of expediency,
the Resolution also delegates to the Village Manager the authority to execute this Agreement and all
future amendments to this Agreement. All future reimbursements for receipt of disaster grant funds
related to Hurricane Ian will be reflected in amendments to this Agreement.
The attached Resolution has been prepared and/or reviewed by the Village Attorney for legal sufficiency.
Recommendation:
Village Staff requests Council consideration and approval of the attached Resolution approving
a Federally-Funded Subaward and Grant Agreement with the Florida Division of Emergency
Management for receipt of FEMA grant funds relating to Hurricane Ian and delegating authority
to the Village Manager to execute this Agreement as well as any future amendments to this
Agreement in accordance with Village policies and procedures.
RESOLUTION 2023-_____
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, APPROVING A FEDERALLY-FUNDED
SUBAWARD AND GRANT AGREEMENT WITH THE STATE OF FLORIDA
DIVISION OF EMERGENCY MANAGEMENT FOR THE RECEIPT OF FEMA
GRANT FUNDS AND AUTHORIZING THE VILLAGE MANAGER TO
EXECUTE THE AGREEMENT ON BEHALF OF THE VILLAGE; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Village has applied for Federal Emergency Management Agency (FEMA) grant
funds for costs and damages incurred during Hurricane Ian; and
WHEREAS, in order to receive such funds, the Village is required to execute a Federally-Funded
Subaward and Grant Agreement (“Agreement”) with the State of Florida Division of Emergency
Management, as the pass-through entity for the receipt of grant funds; and
WHEREAS, any award of grant funds associated with Hurricane Ian will be processed through an
amendment to the Agreement; and
WHEREAS, the Village Council determines that the adoption of this Resolution is in the best interests
of the Village and its residents.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE
OF NORTH PALM BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are hereby ratified as true and incorporated herein.
Section 2. The Village Council hereby approves a Federally-Funded Subaward and Grant
Agreement with the State of Florida Division of Emergency Management, a copy of which is attached
hereto and incorporated herein, and delegates to the Village Manager the authority to execute the
Agreement on behalf of the Village, as well as any future amendments to the Agreement relating to
reimbursements for costs and damages incurred during Hurricane Ian.
Section 3. This Resolution shall become effective immediately upon adoption.
PASSED AND ADOPTED THIS ____DAY OF ____________, 2023.
(Village Seal)
MAYOR
ATTEST:
VILLAGE CLERK
VILLAGE OF NORTH PALM BEACH
FINANCE DEPARTMENT
TO: Honorable Mayor and Council
THRU: Charles Huff, Village Manager
FROM: Samia Janjua, Finance Director
DATE: March 16, 2023
SUBJECT: RESOLUTION – Acceptance of Fiscal Year 2022 Audit Report
The September 30, 2022 year-end annual comprehensive financial report will be distributed by our
auditors at this coming week’s Council meeting. 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. This annual financial report reflects
continuing improvement in our Village’s financial operations and overall financial condition.
On March 7th, the Independent Auditors from Nowlen, Holt & Miner P.A. presented the FY2022 “Annual
Comprehensive Financial Report” to the Village’s Audit Committee.
The attached Resolution has been prepared and/or reviewed by the Village Attorney for legal
sufficiency.
Recommendation:
Village Staff requests Council consideration and approval of the attached Resolution
authorizing the Mayor and Village Clerk to accept the annual comprehensive financial report
prepared by the Auditor for the fiscal year ending September 30, 2022 and to file the report with
the state as required by law .
RESOLUTION 2023-
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
NORTH PALM BEACH, FLORIDA, ACCEPTING THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT PREPARED BY THE VILLAGE
AUDITOR FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2022 AND
AUTHORIZING ITS FILING WITH THE STATE; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, as required by Chapter 218, Florida Statutes, the Village Council selected the firm of
Nowlen, Holt & Miner, P.A. (“Auditor”) to prepare an Annual Comprehensive Financial Report,
including an audit report, for the fiscal year ending September 30, 2022; and
WHEREAS, the Village Council wishes to accept the annual financial report and authorize its
filing with the State as required by law.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF NORTH PALM
BEACH, FLORIDA as follows:
Section 1. The foregoing recitals are ratified as true and correct and are incorporated herein.
Section 2. The Village Council hereby authorizes the Mayor and Village Clerk to accept the
Annual Comprehensive Financial Report prepared by the Auditor for the fiscal year ending
September 30, 2022 and to file said report with the state as required by law.
Section 3. This Resolution shall be effective immediately upon adoption.
PASSED AND ADOPTED THIS ______ DAY OF , 2023.
(Village Seal)
MAYOR
ATTEST:
VILLAGE CLERK
Village of North Palm Beach
Audit Presentation to
North Palm Beach Village Council
March 16, 2023
Nowlen, Holt & Miner, P.A.
Terry L. Morton, Jr., CPA
Village of North Palm Beach
Reports Issued
Independent Auditor’s Report on the Financial Statements – Our report
expressed an Unmodified Opinion on the financial statements.
This is a new format from the prior year. The report starts with the Opinion and
is a page longer, but I think it does a better job of explaining, what an audit is,
Management’s responsibilities, the Auditor’s responsibilities, and how the Audit
Opinion relates to the various sections of the report.
Independent Auditor’s Report on Internal Control and on Compliance and
Other Matters – No material weaknesses reported and no instances of
noncompliance or other matters that are required to be reported.
Independent Auditor’s Management Letter Required by Chapter 10.550, Rules
of the Auditor General: There were no items reported in the current year.
As noted on page 124 of this report, the Village did not need to have a Single
Audit for the ARPA funds received but elected to have the alternative
compliance attestation engagement performed. This is an exception for entities
receiving less than 10 million dollars and no other federal funding requiring a
Single Audit. The compliance attestation engagement has significantly less
compliance requirements that need testing resulting in a lower fee. By
recognizing all 6 million of the funds received this year, the Village also avoids
having to pay for more than one engagement. The report issued is similar to
the one on page 125 on the Village’s investment policies.
Independent Accountant’s Report on Compliance with Section 218.415,
Florida Statutes – Section 218.415, Florida Statutes governs the Village’s
Investment Policies. Our report expressed an Unmodified Opinion on the Village’s
compliance with the requirements.
Village of North Palm Beach
Awards
Government Finance Officers Association
Certificate of Achievement for
Excellence in Financial Reporting
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Village of North Palm Beach for its comprehensive annual
financial report for the fiscal year ended September 30, 2021. This was the 34rd consecutive year that
the Village has achieved this prestigious award.
Village of North Palm Beach
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the Village of North Palm Beach, Florida are described in
Note 1 to the financial statements. The application of existing policies was not changed during
the year. We noted no transactions entered into by the Village during the year for which there is
a lack of authoritative guidance or consensus. All significant transactions have been recognized
in the financial statements in the proper period.
New Accounting Standards Implemented in the Current Year
The Village implemented GASB Statement No. 87, Leases. This requires the recognition of certain
lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources based on the payment provisions of the contract.
Note 7 starting on page 54 summarizes the Villages leasing transactions subject to GASB 87. The
vehicles leased in the General Fund (see page 53) are considered financed purchases and are
exempt from the standard. The Village also has leases for copiers and office rental for Community
Development that were not recorded since they were not considered material to the Financial
Statements.
The Country Club fund has a right to use lease for Golf Carts. On the Statement of Net Position
the lease asset is included in in capital assets and a lease liability is recorded for the payments due.
Both General Fund and Country Club have lessor leases. The General Fund leases land to three
cell companies for their towers. On page 18 both a lease receivable and a deferred inflow are
recorded. As payments are made, a portion is allocated to reduce the receivable and the remainder
is recorded as interest income. The deferred inflow is amortized over the length of the lease and
recorded as income. The difference between the receivable and the deferred inflow is because the
receivable is amortized using the net present value of the lease payments while the deferred inflow
is amortized in equal annual amounts over the life of the lease. The Country Club Lease is shown
on page 22. The reason the amount is much smaller for the Country Club is since both the Village
and Farmers Table have the right to cancel, the renewals are not considered when calculating the
lease receivable and deferred inflow.
New Accounting Standards and Other Items Affecting Next Year’s Audit
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.
This statement recognizes assets and liabilities for subscription-based information technology
arrangements, such as the accounting software package, similar to the statement on leases. As it
is a little more complicated and not as straightforward as leases, we will be working with the
Finance and Information Technology departments over the summer to assist in the implementation
of this statement.
Village of North Palm Beach, FL
Annual Comprehensive
Financial Report
Fiscal year ended September 30, 2022
The Village of
North Palm Beach, Florida
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Year Ended September 30, 2022
Prepared by:
Finance Department
Samia Janjua
Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2022
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 ....................................................................................................... 5
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 15
Statement of Activities ......................................................................................................................... 16
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................. 18
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position ..................................................................................................... 19
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds ........................................................................................... 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities .................................... 21
Statement of Net Position - Proprietary Fund ...................................................................................... 22
Statement of Revenues, Expenses, and Changes in Net
Position - Proprietary Fund ............................................................................................................ 23
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 ..................................................................................................... 27
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Changes in Total OPEB liability ....................................................................................... 84
Schedule of Changes in Net Pension Liability – General Employees Retirement Fund ....................... 85
Schedule of Changes in Net Pension Liability – Fire and Police Retirement Fund .............................. 87
Schedules Contributions and Investment Returns – Retirement Funds ............................................... 89
Notes to the Schedule of Contributions ................................................................................................ 90
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund ................................................................................................. 91
Notes to the Budgetary Required Supplementary Information ............................................................ 92
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 .................................... 93
Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 96
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds ........................................................................................................ 97
Combining Statement of Net Position – Pension Trust Funds .............................................................. 98
Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds ........................... 99
Schedule of Revenues and Departmental Expenses –
Budget and Actual – Country Club Fund – Budgetary Basis .......................................................... 100
STATISTICAL SECTION
Net Position by Component ............................................................................................................... 102
Changes in Net Position ..................................................................................................................... 103
Fund Balances, Governmental Funds ................................................................................................. 105
Changes in Fund Balances, Governmental Funds .............................................................................. 106
Net Assessed Value and Estimated Actual Value of Taxable Property ............................................. 108
Property Tax Rates - Direct and Overlapping Governments............................................................... 109
Principal Property Taxpayers ............................................................................................................. 110
Property Tax Levies and Collections ................................................................................................. 111
Ratios of Outstanding Debt by Type ................................................................................................... 112
Direct and Overlapping Governmental Activities Debt ...................................................................... 113
Pledged-Revenue Coverage ................................................................................................................ 114
Demographic and Economic Statistics ................................................................................................ 115
Principal Employers ........................................................................................................................... 116
Full-Time Equivalent Village Government Employees by Function .................................................. 117
Operating Indicators by Function/Program ........................................................................................ 118
Capital Asset Statistics by Function/Program ..................................................................................... 119
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 ................................ 120
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ............................................................................................................................... 122
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes .................................................................................................... 125
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 16, 2023
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, 2022.
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, 2022. 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.
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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 Funds (i.e., the Country Club & Stormwater Utility) is presented using
the full accrual basis of accounting required by Generally Accepted Accounting Principles (GAAP) for its
annual financial report. The Country Club & Stormwater Utility Fund annual budgets are 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 2022) 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 2022 to $2,630,171,984 or nearly 8.09%, over 2021’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 55% of the annual budget is allotted for wages and fringe benefits.
INITIATIVES AND FUTURE PROJECTS
For Fiscal Year 2022-23, 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 strategic themes and
objectives to guide the Village’s financial plan in 2022 that is carried into 2023:
Community Culture and Character
Preserving and honoring the small-village character, culture and charm of North Palm Beach is a
significant consideration of the Village Council in all of its policy decisions. The preservation of
the traditional boat and RV storage at Anchorage Park, the effort to manage the bulk and mass
of new homes to be consistent with the overall character of the Village and the focus on small
events as a means to bring residents together are examples of Council’s emphasis on community
culture and character.
Community Engagement
The Village Council strives to build trust and relationships that inspire citizens to become involved
in the community through effective communication. To that end, the Village is seeking to
continually improve communication with residents and businesses. For example, the
Communications Manager initiated a weekly e-newsletter to keep residents apprised of upcoming
meetings, policy issues to be discussed by the Village Council, upcoming construction projects
and events. The Village also works to “actively listen” to residents’ input. One means of
accomplishing this has been to hold “open house” meetings to review and receive one-on-one
feedback related to redevelopment issues that impact the community.
Quality of Life
This strategic goal is intended to ensure that the Village provides unsurpassed amenities and
programming, efficient and reliable infrastructure and the preservation of safety and well-being to
the community. To accomplish this, the Village will provide safe, clean, well-maintained and
dependable infrastructure; offer and maintain top-quality and market-driven amenities and
programming; and recognize and capitalize on the community’s essential and unique natural
assets, especially our waterways.
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A greater focus on recreation programming, an increase in maintenance and capital investment
in existing infrastructure, pedestrian improvements to the Earman River bridges and plans to
improve Lighthouse Drive and development of the Master Utilities Plan to underground overhead
utilities are all examples of initiatives taking place this year to address Quality of Life issues.
All Neighborhoods as Safe and Desirable Places to Live
The Village Council wants every place in the Village to be a location where we would want our
families to live. To accomplish this, public safety has to be excellent, aesthetics must be
maintained and promoted and codes have to be maintained that are in keeping with community
values and needs. 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 will initiate a review of its land development regulations related to
residential neighborhoods.
People and Organizational Performance
Through this goal, the Village seeks to ensure that Village services are responsive to the
community’s needs and are equitably and efficiently delivered. This will be done, in part, by
recruiting and retaining qualified staff. This goal is also intended to emphasize financial
sustainability and fiscal responsibility through a diversified revenue stream and efficient
management of resources.
This year’s fiscal plan includes a reduction in the ad valorem tax rate and the introduction of a
stormwater fee. The tax rate reduction was intended, in part, to offset the revenue being collected
as part of the stormwater fee, which will be directed to planning, maintenance efforts and capital
projects associated with managing the volume and quality of stormwater in the Village. This
change in the Village’s revenue stream also diversifies the source of revenue in accordance with
the Village Council’s strategic goals.
The Department of Public Works and the Village’s Leisure Service departments – Parks &
Recreation and Library – have been reorganized and restructured in order to deliver the services
the community desires. Public Works has created a series of new leadership positions that
replace traditional supervisory position that did not have the same level of technical and
leadership expectations as are now being required. With the initial transition to this new structure
occurring late in FY 2021, the organizational shift yielded results as service delivery and internal
collaboration amongst its employees has greatly improved. Parks & Recreation restructured to
include a Superintendent of Parks and two Park Ranger positions that will focus on parks and
facilities maintenance, capital projects and park security. This will allow the Director of Leisure
Services – which oversees Parks & Recreation and Library Services – to focus on programming
and events. These changes, including the addition of two new police officers, were made with
the projection of an overall decrease in General Fund personnel costs.
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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 will assist the Village in achieving this strategic goal as well.
Functions at the Country Club continue to be reviewed to ensure that revenue is generated to
finance debt, cover operating and maintenance costs and begin funding future improvements.
The first contribution to a Renewal & Replacement (R&R) Fund, which will be used to finance the
repair and replacement of capital assets at the clubhouse, will be made this fiscal year.
Additionally, because of continued operational changes at the tennis center and the pool, it is
anticipated that the financial obligations of the General Fund to those functions will be reduced
even though they will continue to be accessible to all Village residents.
Economic Vitality
The Village Council is working to encourage commercial services and retail offerings that
complement our community’s requirements and expectations. 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, the Village with a reviewed and rewrote the Comprehensive Plan and Land
Development regulations to facilitate the development process.
The new commercial code has resulted in significant interest in the Village from developers.
Village staff anticipates the consideration of at least one significant development application on
US1 in the upcoming year. Projects will be reviewed to ensure that they meet the objectives of
the Master Plan, the Comprehensive Plan and the Land Development regulations.
As part of this effort, the Village’s Business Advisory Board will be working to engage existing
businesses to determine their needs in order to assist in the revitalization of our commercial
corridors.
continued on next page
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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, 2021. 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, 2021. 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.
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,
Charles Huff
Village Manager
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THE VILLAGE OF NORTH PALM BEACH, FLORIDA
PRINCIPAL VILLAGE OFFICIALS
SEPTEMBER 30, 2022
Title Name
Mayor Deborah Searcy
Vice Mayor David Norris
President Pro Tem Susan Bickel
Council Member Darryl Aubrey
Council Member Mark Mullinix
Village Manager Charles Huff
Director of Finance Samia Janjua
Village Clerk Jessica Green
Village Attorney
Village Boards
Audit Committee
Business Advisory
Golf Advisory
Infrastructure Surtax
Environmental Committee
Library Advisory
Pension Boards
Planning Commission
Recreation Advisory
Waterways Board
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
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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, 2021
Executive Director/CEO
FINANCIAL SECTION
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INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Report on the Audit of the Financial Statements
Opinions
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, 2022, 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.
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, 2022, 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.
Basis for Opinions
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. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the Village of
North Palm Beach, Florida and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
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Change in Accounting Principle
As described in Note 7 to the financial statements, Village of North Palm Beach, Florida
implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases,
during the year ended September 30, 2022. Application of this new standard to October 1, 2021,
the earliest year presented, was insignificant. Our opinion is not modified with respect to this
matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America; and
for 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Village of
North Palm Beach, Florida’s ability to continue as a going concern for twelve months beyond the
financial statement date, including any currently known information that may raise substantial
doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but
is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance
with generally accepted auditing standards and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in
the aggregate, they would influence the judgment made by a reasonable user based on the
financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the
audit.
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
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Obtain an understanding of internal control relevant to the audit 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 Village of North Palm Beach, Florida’s
internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Village of North Palm Beach, Florida’s
ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis on pages 5 through 14, Pension and Other
Postemployment Benefit trend information on pages 84 through 90, and budgetary comparison
information on pages 91 through 92 be presented to supplement the basic financial statements.
Such information is the responsibility of management and, 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.
Supplementary 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
accompanying other supplementary information are presented for purposes of additional analysis
and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The 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
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auditing standards generally accepted in the United States of America. In our opinion, the other
supplementary information are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory section and the statistical section but does not include the
basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the
other information and consider whether a material inconsistency exists between the other
information and the basic financial statements, or the other information otherwise appears to be
materially misstated. If, based on the work performed, we conclude that an uncorrected material
misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 7, 2023, 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, and 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 Village of North Palm Beach, Florida’s internal control over
financial reporting and compliance.
West Palm Beach, Florida
March 7, 2023
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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, 2022. 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
2022 2021 (Decrease)Page #
Total net position $45.64 $33.68 $11.96 15
Unrestricted net position available for future use $16.10 $7.48 $8.62 15
Governmental net position $40.78 $30.41 $10.37 15
Total revenues from all sources $43.74 $34.68 $9.06 16
Governmental revenues $36.41 $28.78 $7.63 16
Total cost of all Village programs $31.83 $30.89 $0.94 16
Governmental transfers to Business-type $0.76 $3.53 ($2.77)16
Governmental revenues over (under) expenses $10.50 $0.31 $10.19 17
Proprietary revenues over (under) expenses $1.45 $3.49 ($2.04)23
General fund revenues over (under) expenditures $1.29 $1.59 ($0.30)20
General fund unassigned fund balance $13.65 $13.89 ($0.24)18
As a percent of general fund expenditures 50.58%53.71%-3.13%
Change in total long-term debt for the Village ($0.06)$0.23 ($0.29)
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.
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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 Fund and the Stormwater
Utility Fund 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 18-21 of
this report.
7
• Proprietary Funds
Proprietary funds report any activity for which the costs of providing goods and services to the
general public on a continuing basis are primarily financed or recovered through user charges.
These funds are reported in the same way that all activities are reported in the Statement of Net
Position and the Statement of Activities. This is similar to that found in the private sector and
provides a periodic measurement of net income.
Proprietary activities are accounted for in enterprise funds for the Country Club and Stormwater
operations. The Country Club fund was the only major enterprise fund for the year ended
September 30, 2022. The basic proprietary fund financial statements can be found on pages 22-24
of this report.
• Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The funds in this category are the Village’s Pension Trust Funds and 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 25-26 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position.
In the case of the Village, the net position was $45.64 million at the close of the most recent fiscal year.
A significant portion of the Village's net position (57.43%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment), less any related debt still outstanding, which was used to
acquire those assets. The Village uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending.
8
Table 2
Village of North Palm Beach
Net Position
(In Thousands)
Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Assets:
Current and other assets 32,630$ 23,498$ 497$ (1,258)$ 33,127$ 22,240$
Capital assets 34,599 33,341 6,917 6,811 41,516 40,152
Total assets 67,229 56,839 7,414 5,553 74,643 62,392
Deferred outflows of resources:2,312 3,433 2 8 2,314 3,441
Liabilities:
Current liabilities 957 4,284 1,372 1,183 2,329 5,467
Long-term liabilities 16,413 21,703 1,022 1,039 17,435 22,742
Total liabilities 17,370 25,987 2,394 2,222 19,764 28,209
Deferred inflows of resources:11,262 3,878 294 64 11,556 3,942
Net positon:
Net investement in capital assets 20,231 18,910 5,976 5,874 26,207 24,784
Restricted 3,331 1,419 3,331 1,419
Unrestricted 17,347 10,078 (1,248) (2,599) 16,099 7,479
Total net position 40,909$ 30,407$ 4,728$ 3,275$ 45,637$ 33,682$
Governmental Activities
The cost of all governmental activities this year was $25.14 million. As shown on Table 3, Changes in Net
Position, grants and those who directly benefited from the programs paid for $11.09 million of this cost and
$14.06 million was financed through general revenues. Governmental activities increased the Village's net
position by $10.50 million, thereby accounting for 88% of the total increase in the net position of the
Village.
Additional detail is shown in Table 3, which follows on the subsequent page.
9
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Activities Total
2022 2021 2022 2021 2022 2021
Revenues:
Program revenues:
Charges for services 3,945$ 3,506$ 7,313$ 5,903$ 11,258$ 9,409$
Operating grants and contributions 7,110 602 7,110 602
Capital grants and contributions 31 22 50 81 22
General revenues:
Property taxes 17,833 17,629 17,833 17,629
Local option gas taxes 297 283 297 283
Local option infrastructure surtax 1,229 1,012 1,229 1,012
Utility service taxes 2,727 2,539 2,727 2,539
Sales and use taxes 1,869 1,548 1,869 1,548
Franchise taxes 1,492 1,354 1,492 1,354
Investment earnings (249) 81 18 1 (231) 82
Miscellaneous 93 181 93 181
Gain on asset disposals 29 21 29 21
Total revenues 36,406 28,778 7,381 5,904 43,787 34,682
Expenses:
Program expenses:
General Government 3,566 3,819 3,566 3,819
Public Safety 10,900 11,260 10,900 11,260
Public Works 5,359 5,417 5,359 5,417
Community Development 1,406 1,262 1,406 1,262
Leisure Services 3,441 2,706 3,441 2,706
Interest on long-term debt 471 478 471 478
Country Club 6,566 5,942 6,566 5,942
Stormwater 123 123
Total expenses 25,143 24,942 6,689 5,942 31,832 30,884
Transfers (761) (3,528) 761 3,528
Increase (decrease) in net position 10,502 308 1,453 3,490 11,955 3,798
Net position - beginning of year 30,407 30,099 3,275 (215) 33,682 29,884
Net position - end of year 40,909$ 30,407$ 4,728$ 3,275$ 45,637$ 33,682$
Governmental Business-type
Activities
10
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 3,566$ (3,285)$ 3,819$ (3,368)$
Public safety 10,900 (3,310)11,260 (10,397)
Public works 5,359 (4,891)5,417 (4,952)
Community development 1,406 733 1,262 694
Leisure services 3,441 (2,834)2,706 (2,311)
Interest on long-term debt 471 (471)478 (478)
25,143$ (14,058)$ 24,942$ (20,812)$
2022 2021
At the end of the current year, as compared to the prior year, the total cost of services increased by $0.20
million. This increase is primarily due to the increase in program expense for Leisure Services.
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 $1.41 million and expenses increased by $0.75 million. Net positon
of the Proprietary Funds at September 30, 2022, was $4.73 million. Net position increased by $1.45 million.
This increase is primarily due to the increase in golf activity in the Country Club and the implementation
of the Non-Ad Valorem assessment in the Stormwater Utility Fund.
11
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 $26.56
million, a $7.39 million increase from the 2021 fund balance of $19.17 million. Approximately 89% of the
combined ending fund balance ($23.52 million) constitutes unrestricted (unassigned/assigned) fund
balance, which is available for spending at the government's discretion. The remainder of fund balance
($3.04 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 $13.65 million while the General Fund total fund balance was $16.04
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 51% of total general
fund expenditures, while total fund balance represents 59% of that same amount.
The general fund unassigned fund balance ($13.65 million) represents a decrease of $0.24 million from the
2021 unassigned general fund balance of $13.89 million. The decrease is primarily due to the use of General
Fund Unassigned Fund Balance to finance the following capital improvements and equipment acquisitions:
• Public Safety Uninterruptible Power Supply (UPS) System ($90,000)
• Cardiac Monitors and Power Stretchers ($240,000)
• Anchorage Park Playground ($125,000)
• Air Handlers/Chiller Replacement ($440,000)
• Work Order Software for Public Works ($100,000)
• Front-Load Solid Waste Vehicle ($330,000)
• Lighthouse Traffic Calming/Bridge Design ($115,000)
• East Alleyway Resurfacing & Wall Replacement and/or Anchorage Park Dry Storage ($560,000)
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were $3,692,845 and can be briefly
summarized as follows:
• Vehicle Leases ($1,215,113)
• Prior Year Open Purchase Order Carryover ($477,732)
• Transfer to Capital Projects Fund ($2,000,000)
General Fund Budget Analysis
As shown on pages 93-95 of this report, in the Schedule of Departmental Expenditures – Budget and Actual,
there was an overall favorable budget to actual cost variance of $0.29 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).
12
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 received a
total of $6.57 million in federal funding and, in accordance with the program's guidelines for revenue
replacement, has allocated those funds to general government services to continue uninterrupted service
levels and facility maintenance, including but not limited to law enforcement, public works, community
services, recreation and customer service. 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 $6.59 million.
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 $1.02 million.
Proprietary Funds
Proprietary funds provide the same type of information found in the government-wide financial statements,
but in more detail. As mentioned earlier, the major proprietary fund for the Village is the Country Club
Fund. At the end of the current fiscal year, the unrestricted net position for the Country Club was ($1.63)
million while the Country Club total net position was $4.01 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, 2022 and 2021 amounts to $41.52 million and $40.15 million, respectively (net of accumulated
depreciation).
13
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Land 2,056$ 2,056$ 1,051$ 1,051$ 3,107$ 3,107$
Construction in progress 2,879 1,533 192 52 3,071 1,585
Buildings and improvements 39,035 42,765 12,074 11,480 51,109 54,245
Furniture, fixtures and equipment 10,558 9,966 980 398 11,538 10,364
Total assets 54,528 56,320 14,297 12,981 68,825 69,301
Less accumulated depreciation (19,929) (22,979) (7,380)(6,170)(27,309) (29,149)
Net position 34,599$ 33,341$ 6,917$ 6,811$ 41,516$ 40,152$
Additional information on the Village's capital assets can be found in Note 5 on pages 48 through 50 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 $15.31 million; $14.37 million in the governmental activities
and $0.94 million in business-type activities. None of the Village’s long-term debt comprises debt backed
by the full faith and credit of the government.
Table 6
Village of North Palm Beach
Outstanding Debt
(In Thousands)
Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Loans payable 10,915$ 11,815$ 573$ 936$ 11,488$ 12,751$
Financing contracts 3,453 2,616 3,453 2,616
Total 14,368$ 14,431$ 573$ 936$ 14,941$ 15,367$
Additional information on the Village's debt can be found in Note 6 on pages 50 through 54 of this report.
14
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
The Village’s Unassigned Fund Balance is viewed by the Administration as a measurement of Village
financial stability. Unassigned general fund balance decreased to $13.65 million during the current 2022
fiscal year. The decrease is primarily due to the increase in transfers to the Capital Projects Fund for
additional capital investment.
The FY 2022/23 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 $7.00 mils.
The Village’s financial plan represents an aggressive approach to adequately maintain infrastructure and
address gaps in the organization in order to deliver services to the community. While the budget allocates
resources to improve the Village’s ability to address service and maintenance demands annually, there are
also significant capital investments to be made that will be unique to the upcoming fiscal year.
Improvement of the dry storage area in Anchorage Park and providing funding to Palm Beach County to
incorporate aesthetic features and pedestrian amenities into their design of the Prosperity Farms Road
Bridge Replacement Project are unique investments for the upcoming year.
These upcoming investments will result in increased expenditures; however, increasing property valuations
and continued state and national economic growth will blunt the impact of these projects to the annual
financial plan.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with
a general overview of the Village's finances and to show the Village's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Village's Finance Department, at the Village of North Palm Beach, 501 U.S. Highway 1, North Palm Beach,
Florida 33408.
THIS PAGE INTENTIONALLY LEFT BLANK
BASIC FINANCIAL STATEMENTS
Statement of Net Position
September 30, 2022
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents 10,219,710$ 1,806,360$ 12,026,070$
Investments 14,544,757 14,544,757
Accounts receivable 405,444 72,513 477,957
Lease - receivable current portion 68,427 93,835 162,262
Accrued interest 23,951 23,951
Inventories 112,352 120,424 232,776
Prepaids 27,251 21,360 48,611
Due from other governments 404,753 404,753
Internal balances 1,772,091 (1,772,091)
Non-current assets
Lease - receivable 2,923,328 154,444 3,077,772
Net pension asset 2,127,977 2,127,977
Capital assets:
Nondepreciable 4,934,837 1,242,957 6,177,794
Depreciable (net of depreciation)29,664,614 5,673,820 35,338,434
Total assets 67,229,492 7,413,622 74,643,114
Deferred outflows of resources
Other postemployment benefits related items 48,282 1,959 50,241
Pension related items 2,264,301 2,264,301
Total deferred outflows of resources 2,312,583 1,959 2,314,542
Liabilities
Accounts payable 452,773 175,172 627,945
Deposits 84,791 84,791
Accrued liabilities 206,755 206,755
Unearned revenue 143,351 1,111,276 1,254,627
Accrued interest payable 154,571 154,571
Noncurrent liabilities:
Due within one year 2,639,041 574,907 3,213,948
Due in more than one year 13,774,030 447,475 14,221,505
Total liabilities 17,370,521 2,393,621 19,764,142
Deferred inflows of resources
Deferred revenue 226,925 226,925
Leases 2,913,026 245,255 3,158,281
Other postemployment benefits related items 1,649,095 48,912 1,698,007
Pension related items 6,473,142 6,473,142
Total deferred inflows of resources 11,262,188 294,167 11,556,355
Net position
Net investment in capital assets 20,231,457 5,976,057 26,207,514
Restricted for:
Pension benefits 2,127,977 2,127,977
Recreation 26,857 26,857
Infrastructure 1,022,545 1,022,545
Library 48,088 48,088
Other purposes 105,803 105,803
Unrestricted 17,346,639 (1,248,264) 16,098,375
Total net position 40,909,366$ 4,727,793$ 45,637,159$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
See notes to the financial statements.
15
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2022
Charges for
Functions/Programs Expenses Services
Government:
Governmental activities
General government 3,565,793$ 200,020$
Public safety 10,899,752 597,258
Public works 5,359,535 464,084
Community development and planning 1,406,266 2,139,067
Leisure services 3,441,248 544,283
Interest expense 470,896
Total governmental activities 25,143,490 3,944,712
Business-type activities - country club 6,566,206 6,833,669
Business-type activities - stormwater 123,196 479,459
Total business-type activities 6,689,402 7,313,128
Total government 31,832,892$ 11,257,840$
16
Program Revenues Net (Expense) Revenue and
Operating Capital Changes in Net Position
Grants and Grants and Governmental Business-type
Contributions Contributions Activities Activities Total
80,505$ $ (3,285,268)$ $ (3,285,268)$
6,992,667 (3,309,827) (3,309,827)
4,521 (4,890,930) (4,890,930)
732,801 732,801
32,247 30,817 (2,833,901) (2,833,901)
(470,896) (470,896)
7,109,940 30,817 (14,058,021) (14,058,021)
50,000 317,463 317,463
356,263 356,263
50,000 673,726 673,726
7,109,940$ 80,817$ (14,058,021) 673,726 (13,384,295)
General Revenues:
Taxes:
Property taxes 17,833,603 17,833,603
Local option gas taxes 297,106 297,106
Local option infrastructure surtax 1,228,691 1,228,691
Utility service taxes 2,726,954 2,726,954
Franchise taxes 1,492,336 1,492,336
Sales and use taxes 1,868,788 1,868,788
Investment income - unrestricted (248,726) 17,995 (230,731)
Miscellaneous 92,879 92,879
Gain on disposal of equipment 29,460 29,460
Transfers (760,811) 760,811
Total general revenues 24,560,280 778,806 25,339,086
Change in net position 10,502,259 1,452,532 11,954,791
Net position, beginning of year 30,407,107 3,275,261 33,682,368
Net position, end of year 40,909,366$ 4,727,793$ 45,637,159$
See notes to the financial statements.
17
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2022
Infrastructure ARPA Nonmajor Total
Surtax Grant Governmental Governmental
General Fund Fund Funds Funds
Assets
Cash and cash equivalents 2,843,189$ 899,652$ 3,591,584$ 2,885,285$ 10,219,710$
Investments 11,544,757 3,000,000 14,544,757
Accounts receivable 405,444 405,444
Lease receivable 2,991,755 2,991,755
Accrued interest 23,951 23,951
Inventories 112,352 112,352
Prepaids 27,251 27,251
Due from other funds 2,946 72,091 75,037
Advances to other funds 1,700,000 1,700,000
Due from other governments 277,484 127,269 404,753
Total assets 19,929,129$ 1,026,921$ 6,591,584$ 2,957,376$ 30,505,010$
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable 395,696$ 4,376$ $ 52,701$ 452,773$
Accrued liabilities 206,755 206,755
Due to other funds 2,946 2,946
Unearned revenue 143,351 143,351
Total liabilities 745,802 4,376 55,647 805,825
Deferred inflows of resources
Deferred revenue 226,925 226,925
Leases 2,913,026 2,913,026
Total deferred inflows of resources 3,139,951 3,139,951
Fund balances
Nonspendable:
Inventories and prepaids 139,603 139,603
Advances to other funds 1,700,000 1,700,000
Restricted for:
Recreation 26,857 26,857
Infrastructure 1,022,545 1,022,545
Streets and roads 64,180 64,180
Public safety 38,850 38,850
Library 48,088 48,088
Other purposes 2,773 2,773
Assigned for:
Small business grants 16,435 16,435
Subsequent year's expenditures 353,218 353,218
Special revenue funds 6,591,584 323,544 6,915,128
Capital project funds 2,581,131 2,581,131
Unassigned 13,653,372 (2,946)13,650,426
Total fund balances 16,043,376 1,022,545 6,591,584 2,901,729 26,559,234
Total liabilities, deferred inflows of
resources, and fund balances 19,929,129$ 1,026,921$ 6,591,584$ 2,957,376$ 30,505,010$
See notes to the financial statements.
18
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position
September 30, 2022
Fund balances - total governmental funds 26,559,234$
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 54,528,925$
Less: accumulated depreciation (19,929,474)
34,599,451
Accrued interest payable (154,571)
Revenue notes (10,915,000)
Contracts that transfer ownership (3,452,994)
Net pension asset 2,127,977
Other postemployment benefits (578,857)
Accrued compensated absences (1,466,220)
(14,439,665)
Other postemployment benefits deferred outflows 48,282
Other postemployment benefits deferred inflows (1,649,095)
Pension related deferred outflows 2,264,301
Pension related deferred inflows (6,473,142)
(5,809,654)
Net position of governmental activities 40,909,366$
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
governmental funds:
See notes to the financial statements.
19
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2022
Infrastructure ARPA Nonmajor Total
Surtax Grant Governmental Governmental
General Fund Fund Funds Funds
Revenues
Taxes 22,349,999$ $ $ $ 22,349,999$
Licenses and permits 1,764,430 1,764,430
Intergovernmental 1,937,865 1,228,691 6,574,706 414,512 10,155,774
Charges for services 1,968,268 1,968,268
Fines and forfeitures 169,045 169,045
Investment (272,252) 8,083 15,443 (248,726)
Miscellaneous 364,911 364,911
Total revenues 28,282,266 1,236,774 6,590,149 414,512 36,523,701
Expenditures
Current
General government 3,612,174 3,612,174
Public safety 11,183,895 418,215 11,602,110
Public works 4,988,651 4,988,651
Community development and planning 1,437,597 1,437,597
Leisure services 2,431,335 2,431,335
Capital outlay 1,583,473 1,545,803 1,015,814 4,145,090
Debt service
Principal 1,278,543 1,278,543
Interest 476,504 476,504
Total expenditures 26,992,172 1,545,803 1,434,029 29,972,004
Excess (deficiency) of revenues
over (under) expenditures 1,290,094 (309,029) 6,590,149 (1,019,517) 6,551,697
Other financing sources (uses)
Financing contracts proceeds 1,215,112 1,215,112
Transfers in 2,913,315 2,913,315
Transfers out (3,038,550) (253,315) (3,291,865)
Total other financing sources (uses)(1,823,438) 2,660,000 836,562
Net change in fund balances (533,344) (309,029) 6,590,149 1,640,483 7,388,259
Fund balances
Beginning of year 16,576,720 1,331,574 1,435 1,261,246 19,170,975
End of year 16,043,376$ 1,022,545$ 6,591,584$ 2,901,729$ 26,559,234$
See notes to the financial statements.
20
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, 2022
Net change in fund balances - total governmental funds 7,388,259$
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 4,135,665$
Donated assets
Assets transferred to Business-Type Activities (382,261)
Less: current year depreciation (2,378,349)
Net book value for retired assets (117,141) 1,257,914
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 (1,215,112)
Principal payments on debt 1,278,543 63,431
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 5,608
Change in long-term compensated absences (4,444)
Change in net pension liability and related deferred amounts 1,480,423
Change in other postemployment benefits and deferred amounts 311,068
1,792,655
Change in net position 10,502,259$
See notes to the financial statements.
21
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
Proprietary Funds
September 30, 2022
Country Club Nonmajor Total
Enterprise Enterprise Enterprise
Fund Fund Funds
Assets
Current assets
Cash and cash equivalents 1,412,975$ 393,385$ 1,806,360$
Accounts receivable 72,513 72,513
Lease receivable - current portion 93,835 93,835
Inventories 120,424 120,424
Prepaids 21,360 21,360
Total current assets 1,721,107 393,385 2,114,492
Non-current assets
Lease receivable 154,444 154,444
Capital assets, net 6,580,107 336,670 6,916,777
Total non-current assets 6,734,551 336,670 7,071,221
Total assets 8,455,658 730,055 9,185,713
Deferred outflows of resources
Other postemployment benefits related items 1,959 1,959
Total deferred outflows of resources 1,959 1,959
Liabilities
Current liabilities
Accounts payable 164,273 10,899 175,172
Deposits 84,791 84,791
Unearned revenue 1,111,276 1,111,276
Due to other funds 72,091 72,091
Lease liability - current portion 160,229 160,229
Compensated absences - current portion 36,493 36,493
Loans payable - current portion 378,185 378,185
Total current liabilities 2,007,338 10,899 2,018,237
Non-current liabilities
Lease liability 207,158 207,158
Other postemployment benefits 23,492 23,492
Compensated absences 21,677 21,677
Advances from other funds 1,700,000 1,700,000
Loans payable 195,148 195,148
Total non-current liabilities 2,147,475 2,147,475
Total liabilities 4,154,813 10,899 4,165,712
Deferred inflows of resources
Other postemployment benefits related items 48,912 48,912
Leases 245,255 245,255
Total deferred inflows of resources 294,167 294,167
Net position
Net investment in capital assets 5,639,387 336,670 5,976,057
Unrestricted (1,630,750) 382,486 (1,248,264)
Total net position 4,008,637$ 719,156$ 4,727,793$
See notes to the financial statements.
22
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended September 30, 2022
Country Club Nonmajor Total
Enterprise Enterprise Enterprise
Fund Fund Funds
Operating revenue
Greens fee/cart rentals/golf membership fees 4,283,032$ $ 4,283,032$
Golf shop revenues 680,550 680,550
Driving range revenues 501,491 501,491
Restaurant revenues 310,636 310,636
Tennis revenues 804,829 804,829
Pool revenues 210,920 210,920
Stormwater assessments 479,459 479,459
Miscellaneous 42,211 42,211
Total operating revenues 6,833,669 479,459 7,313,128
Operating expenses
Golf course maintenance expenses 1,936,631 1,936,631
Clubhouse grounds expenses 521,794 521,794
Golf shop expenses 1,617,892 1,617,892
Food and beverage expenses 19,748 19,748
Tennis expenses 740,001 740,001
Pool expenses 300,430 300,430
Administrative and general 340,290 10,421 350,711
Repairs and maintenance 89,791 89,791
Amortization 121,415 121,415
Depreciation 884,527 22,984 907,511
Total operating expenses 6,482,728 123,196 6,605,924
Operating income 350,941 356,263 707,204
Nonoperating revenues (expenses)
Interest revenue 14,756 3,239 17,995
Loss on disposal of equipment (4,243) (4,243)
Interest expense (79,235) (79,235)
Total nonoperating revenues (expenses)(68,722) 3,239 (65,483)
Income (loss) before capital contributions and transfers 282,219 359,502 641,721
Capital contributions 72,607 359,654 432,261
Transfers in 378,550 378,550
Change in net position 733,376 719,156 1,452,532
Net position - beginning 3,275,261 3,275,261
Net position - ending 4,008,637$ 719,156$ 4,727,793$
See notes to the financial statements.
23
Country Club Nonmajor Total
Enterprise Enterprise Enterprise
Fund Fund Funds
Cash flows from operating activities:
Receipts from customers 6,995,009$ 479,459$ 7,474,468$
Payments to suppliers for goods or services (4,461,504)(89,313)(4,550,817)
Payments to employees for services (1,110,851)(1,110,851)
Net cash Provided by operating activities 1,422,654 390,146 1,812,800
Cash flows from non-capital financing activities:
Transfers in 378,550 378,550
Net cash provided by non-capital financing activities:378,550 378,550
Cash flows from capital and related financing activities:
Capital contributions 50,000 50,000
Principal paid on long term debt (481,249)(481,249)
Interest paid on debt (79,235)(79,235)
Acquisition of capital assets (270,962)(270,962)
Net cash provided (used) by capital and related financing activities (781,446)(781,446)
Cash flows from investing activities:
Interest and dividends on investments 14,756 3,239 17,995
Net increase (decrease) in cash and cash equivalents 1,034,514 393,385 1,427,899
Cash and cash equivalents at beginning of year 378,461 378,461
Cash and cash equivalents at end of year 1,412,975$ 393,385$ 1,806,360$
Reconciliation of operating income
to net cash provided by operating activities:
Operating income (loss)350,941$ 356,263$ 707,204$
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and amortization 1,005,942 22,984 1,028,926
Change in OPEB liability and related deferred amounts (17,992) (17,992)
Change in pension deferred amounts (18,929) (18,929)
Change in assets and liabilities
Increase in accounts receivable (23,346) (23,346)
(Increase) decrease in inventory (46,318) (46,318)
(Increase) decrease in prepaids (8,617) (8,617)
Increase (decrease) in accounts payable (7,055) 10,899 3,844
Increase (decrease) in compensated absences payable 3,342 3,342
Increase (decrease) in deposits 37,857 37,857
Increase (decrease) in deferred revenue 146,829 146,829
Total adjustments 1,071,713 33,883 1,105,596
Net cash provided by operating activities 1,422,654$ 390,146$ 1,812,800$
Noncash investing, capital and financing activities
Transfer of capital assets from the Governmental Activities 22,607$ 359,654$ 382,261$
For the Year Ended September 30, 2022
Proprietary Fund
Statement of Cash Flows
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
See notes to the financial statements.
24
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2022
Employee
Retirement Custodial
Funds Fund
Assets
Cash and cash equivalents 470,965$ 326,543$
Investments:
Domestic common equity securities 16,874,809
International common equity securities 4,177,100
U.S. Government and agencies 6,393,855
Municipal bonds 1,334,520
Domestic corporate bonds 4,015,202
International corporate bonds 464,599
Domestic equity exchange traded funds 2,602,239
International equity exchange traded funds 671,219
Fixed income mutual funds 1,699,649
Domestic equity mutual funds 2,329,589
International equity mutual funds 787,810
Real estate investment fund 3,797,505
Money market mutual funds 676,455
Accrued interest and dividends 92,493
Prepaids 7,868
Total assets 46,395,877 326,543
Liabilities
Accounts payable 52,860
Total liabilities 52,860
Net position
Restricted for pensions 46,343,017
Restricted for individuals, organizations,
and other governments 326,543
46,343,017$ 326,543$
See notes to the financial statements.
25
Employee
Retirement Custodial
Funds Fund
Additions
Contributions
Employer 828,614$ $
Plan members 465,412
DROP contributions 22,370
State on-behalf payments 414,511
Total contributions 1,730,907
Investment earnings
Dividends and interest 1,076,543 2,789
Change in fair value
of investments (9,295,382)
Total investment earnings (8,218,839)2,789
Less: investment expenses 237,810
Total net investment earnings (8,456,649)2,789
Total additions (6,725,742)2,789
Deductions
Administrative expense 150,643
Refund of contributions 16,692
Benefits 1,784,117
Total deductions 1,951,452
Change in net position (8,677,194)2,789
Net position - beginning 55,020,211 323,754
Net position - ending 46,343,017$ 326,543$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended September 30, 2022
See notes to the financial statements.
26
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
27
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 fund’s 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, 2022
28
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, 2022
29
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.
ARPA Fund
The ARPA Fund is a special revenue fund used to account for the proceeds of the American
Rescue Plan Act. The revenue was recognized in the current fiscal year using
The Village reports the following major proprietary fund:
Country Club Enterprise Fund
The fund accounts for the activities related to the Country Club.
The Village reports the following nonmajor proprietary fund.
Stormwater Utility Fund
The Stormwater Utility Fund is used to account for the charges and related expenses for the
Village’s stormwater drainage system.
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.
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.
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, 2022
30
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 custodial fund is 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 Enterprise Funds are charges to customers for sales and
services. Operating expenses for the Enterprise Funds 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, 2022
31
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, 2022
32
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, except for intangible right‐to‐use lease assets, the
measurement of which is discussed in note 7. 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.
Land and construction in progress are not depreciated. The other tangible and intangible
property, plant, equipment, the right to use leased vehicles, and infrastructure are
depreciated/amortized using the straight‐line method over the following estimated useful lives:
Buildings, improvements and infrastructure 5-30 years
Golf course improvements 5-30 years
Machinery and Equipment 3-15 years
Vehicles 3-20 years
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
33
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Leases
Lease contracts that provide the Village with control of a non-financial asset, such as land,
buildings, or equipment, for a period of time in excess of twelve months are reported as an
intangible right to use lease asset with a related lease liability. The lease liability is recorded at
the present value of future lease payments, including fixed payments, variable payments based
on an index or fixed rate and reasonably certain residual guarantees. The intangible right to use
leased asset is recorded for the same amount as the related lease liability plus any prepayments
and initial direct costs to place the asset in service. Leased assets are amortized over the shorter
of the useful life of the asset or the lease term. The lease liability is reduced for lease payments
made, less the interest portion of the lease payment.
Lease contracts that provide an external entity with control of the Village’s non-financial asset,
such as land, buildings, or equipment, for a period of time in excess of twelve months are
reported as a leased receivable with a related lease deferred inflow of resources. The lease
receivable is recorded at the present value of future lease payments expected to be received
during the lease term, reduced by any provision for estimated uncollectible amounts. The lease
deferred inflow of resources is recorded for the same amount as the related lease receivable less
any lease incentives. Leased deferred inflow of resources are amortized over the lease term. The
lease receivable is reduced for lease payments made, less the interest portion of the lease
payment.
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 assets applicable to future periods and will not be recognized as
expenditures until the future period to which it applies.
The Village reports deferred pension items in connection with its two Retirement Systems. These
deferred pension charges are either (a) recognized in the subsequent period as a reduction of the
net pension liability (which includes pension contributions made after the measurement date) or
(b) amortized in a systematic and rational method as pension expense in future periods. The
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 VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
34
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 statement of net position also includes a separate section, listed below total liabilities, for
deferred inflows of resources. This represents the acquisition of net assets applicable to future
periods and will not be recognized as revenue until the future period to which it applies. The
Village currently has four 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. The fourth are the deferred lease revenues receivable. 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, 2022
35
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, 2022
36
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, 2022
37
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 $353,218 the Infrastructure Surtax
Fund had $2,748 and the Capital Projects Fund had $474,483 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, 2022
38
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, 2022, was 7.0500
($7.0500 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, 2022, unpaid delinquent
taxes are not material and have not been recorded by the Village.
NOTE 3 – DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2022, the carrying amount of the Village’s deposits (including fiduciary
funds) was $3,593,470 and the bank balances totaled $3,658,390. 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, 2022
39
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 $ 3,593,470
Petty cash 4,156
Investments 69,595,260
Total deposits and investments $73,192,886
Presented in the statement of net position
Governmental activities
Cash and cash equivalents $10,219,710
Investments 14,544,757
Business-type activities
Cash and cash equivalents 1,806,360
Total statements of net position 26,570,827
Presented in the statement of fiduciary net
position
Pension trust funds
Cash and cash equivalents 470,965
Investments 45,824,551
Custodial funds
Cash and cash equivalents 326,543
Total fiduciary funds 46,622,059
Total deposits and investments $73,192,886
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 VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
40
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The money market mutual funds consist of investments with financial institutions in open end,
institutional, money market funds complying with Securities and Exchange Commission (SEC)
Rule 2a7. Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair
value to report net assets used to compute share prices if certain conditions are met. Those
conditions include restrictions on the types of investments held, restrictions on the term-to-
maturity of individual investments and the dollar-weighted average of the portfolio, requirements
for portfolio diversification, and requirements for divestiture considerations in the event of
security downgrades and defaults, and required actions if the fair value of the portfolio deviates
from amortized cost by a specified amount.
The 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, 2022, 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 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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
41
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
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 Florida Public Assets for Liquidity Management FL Palm-Term Series invests in highly
rated securities including U.S. Treasury securities, U.S. government agency securities,
deposits including certificates of deposit and commercial paper Securities are rated at least
‘A/F1’ by Fitch Ratings or equivalent. The term portfolio is a fixed-rate, fixed-term
portfolio with a maximum term of one year. The maturity profile of the term portfolio is
managed to meet preset redemptions of the portfolio’s participants. Upon investing in the
program, a participant selects a planned maturity date on which the portfolio seeks to produce
a share price of at least $1.00 for the participant that redeems on said date. Participants may
request premature redemption, but the portfolio may charge significant penalties for any
redemption prior to the agreed-upon redemption date and net asset value may be more or
less than $1.00 per share. Redemptions will be made seven days after the request is received.
The Village’s investments in FL Palm-Term are as follows:
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.
Maturity Interest Rate Amount
12/06/2022 2.90% $ 2,007,238
10/05/2022 1.36% 1,000,000
01/05/2022 1.81% 1,000,000
04/03/2023 2.20% 1,000,000
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
42
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
As of September 30, 2022, 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 1.94 Years $ 3,605,197 $ $ 3,605,197
MBS & ABS 2.92 Years 3,286,671 3,286,671
Municipal Bonds 1.63 Years 108,467 108,467
Domestic Corporate Bonds 2.18 Years 1,579,071 1,579,071
International Corporate Bonds 1.39 Years 918,807 918,807
Fiduciary Funds
U.S. Government and Agency 14.29 Years 2,327,656 2,327,656
MBS & ABS 16.23 Years 4,066,199 4,066,199
Municipal Bonds 6.98 Years 1,334,520 1,334,520
Domestic Corporate Bonds 10.11 Years 4,015,202 4,015,202
International Corporate Bonds 7.87 Years 464,599 464,599
Domestic Common Equity
Securities N/A 16,874,809 16,874,809
International Common Equity
Securities N/A 4,177,100 4,177,100
Domestic Equity ETF N/A 2,602,239 2,602,239
International Equity ETF N/A 671,219 671,219
Fixed Income Mutual Funds N/A 1,699,649 1,699,649
Domestic Equity Mutual Funds N/A 2,329,589 2,329,589
International Equity Mutual
Funds N/A 787,810 787,810
50,848,804 $ 29,142,415 $ 21,706,389
Investments Reported at NAV
Governmental Funds
FL Palm-Term N/A 5,007,238
Fiduciary Funds
American Core Realty Fund N/A 3,797,505
Investments Reported at
Amortized Cost:
Governmental Funds
Money Market Mutual Funds N/A 39,306
Florida Prime 21 Days 1,641,112
FL Palm 25 Days 7,313,856
Fiduciary Funds
Money Market Mutual Funds N/A 947,439
Total Investments $ 69,595,260
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
43
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 that have credit ratings by S&P or Moody’s.
S&P Moody’s Fair
Investments: Rating Rating Value
Governmental Funds
U.S. Government and Agency AA+ AAA $ 3,605,197
MBS &ABS AAA, AA+ & NR AAA & NR 3,286,671
Municipal Bonds AA+, AA & AA- Aa3 & A1 108,467
Domestic Corporate Bonds AA+ to BBB+ AA2 to A3 1,579,071
International Corporate
Bonds
AAA to A-
Aaa to A2 918,807
Florida Prime AAAm NR 1,641,112
FL Palm Portfolio AAAm NR 7,313,856
FL Palm Term NR* NR 5,007,238
Fiduciary Funds
U.S. Government and Agency AA+ AAA to Aaa 2,237,658
MBS &ABS AAA to NR Aaa to NR 4,066,199
Municipal Bonds AAA to NR- Aaa to A1 1,334,520
Domestic Corporate Bonds AAA to BBB- Aaa to Baa3 4,015,202
International Corporate
Bonds
A+ to BBB- Aaa to Baa3
464,599
* Rated AAAf by Fitch.
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, 2022
44
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, 2022
45
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, 2022
46
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. Fixed Income Securities
• Treasury Bills and Money Market Funds
• Commercial Paper and Banker's Acceptances
• Certificates of Deposit
• Obligations of Non-U.S. governments and their subdivisions, agencies and government-
sponsored enterprises
• Yankee Bonds
• Obligations of international agencies or supranational entities
• Obligations issued by the U.S. Government, its agencies and instrumentalities
• Collateralized Mortgage-Backed Securities
• Asset-Backed Securities
• Corporate Debt Securities, including convertible securities and corporate commercial
paper
• Inflation-index bonds issued by corporations
• Structured notes, including hybrid or "indexed" securities, event-linked bonds and loan
participations
• Delayed funding loans and revolving credit facilities
• Bank certificates of deposit, fixed time deposits and bankers acceptances
• Debt securities, issued by states or local governments and their agencies,
authorities and other instrumentalities
2. Equity Securities
• Common Stocks
• Convertible Notes and Bonds
• Convertible Preferred Stocks
• American Depository Receipts (ADRs) of Non-U.S. Companies
• Stocks of Non-U.S. Companies (Ordinary Shares)
• Real Estate Investment Trusts (REITs)
3. Investment Types
• • Open-Ended Mutual Funds
• • Closed-end Mutual Funds
• • Exchange Traded Funds
• • Managed Separate Accounts
• • Investment Partnerships
• • Commingled Funds
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
47
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, 2022
48
NOTE 4 – RECEIVABLES
Receivables at September 30, 2022, were as follows:
General
Fund
Country
Club
Utility franchise fees & taxes $ 387,115 $
Conroy Drive assessment 621
Other accounts receivable 17,708 72,513
Total accounts receivable $ 405,444 $ 72,513
NOTE 5 – CAPITAL ASSETS
Capital Assets activity for the year ended September 30, 2022, 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 1,533,134 1,382,392 (36,578) 2,878,948
Capital assets being
depreciated:
Buildings 25,302,473 99,499 (49,990) 25,351,982
Improvements 17,463,070 1,508,203 (5,287,924) 13,683,349
Machinery and equipment 3,862,622 148,916 (121,275) 3,890,263
Vehicles 6,103,077 1,033,233 (467,816) 6,668,494
Total: 56,320,265 4,172,243 (5,963,583) 54,528,925
Less accumulated depreciation:
Buildings (7,398,827) (702,727) 48,324 (8,053,230)
Improvements (10,334,862) (600,500) 4,928,270 (6,007,092)
Machinery and equipment (1,964,882) (402,439) 121,275 (2,246,046)
Vehicles (3,280,157) (672,683) 329,734 (3,623,106)
Total accumulated
depreciation (22,978,728) (2,378,349) 5,427,603 (19,929,474)
Governmental activities
capital assets, net $ 33,341,537 $ 1,793,894 $ (535,980) $ 34,599,451
The Governmental Activities transferred stormwater improvements with a net book value of
$359,654 to the Stormwater Utility Fund and a vehicle with a net book value of $22,607 to the
Country Club Fund.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
49
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 95,401
Public safety 653,430
Public works 507,183
Community development 32,559
Leisure services 1,089,776
Total depreciation expense, governmental activities $ 2,378,349
Business-type activities:
Beginning
Balance Additions Deletions
Ending
Balance
Capital assets not being
depreciated:
Land $ 1,051,311 $ $ $ 1,051,311
Construction in progress 51,766 191,646 (51,766) 191,646
Capital assets being
depreciated:
Buildings 1,142,411 1,142,411
Improvements 10,337,544 594,041 10,931,585
Machinery and equipment 374,544 97,057 (23,843) 447,758
Vehicles 23,619 22,607 46,226
Intangible Right to Use
Lease - Vehicles 485,659
485,659
Total: 12,981,195 1,391,010 (75,609) 14,296,596
Less accumulated
depreciation/amortization:
Buildings (185,076) (40,028) (225,104)
Improvements (5,830,939) (993,423) (6,824,362)
Machinery and equipment (130,499) (69,103) 19,602 (180,000)
Vehicles (23,619) (5,319) (28,938)
Intangible Right to Use
Lease - Vehicles (121,415)
(121,415)
Total accumulated
depreciation/amortization (6,170,133) (1,229,288) 19,602
(7,379,819)
Business-type activities
capital assets, net $ 6,811,062 $ 161,722 $ (56,007)
$ 6,916,777
Depreciation expense of $884,527 and $22,984 was charged to the Country Club and Stormwater
Utility Funds respectively. Amortization expense of $121,415 was charged to the Country Club
Fund.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
50
NOTE 5 – CAPITAL ASSETS (Continued)
Restatement for the implementation of GASB 87 as of October 1, 2021 related to the intangible
right to use assets – vehicles was deemed insignificant
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.
NOTE 6 – LONG TERM LIABILITIES
Change in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2022, was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Amount
Due
Within
One Year
Governmental activities:
Direct borrowings and
direct placements
Loans payable $ 11,815,000 $ $ (900,000) $ 10,915,000 $ 935,000
Contracts that transfer
ownership 2,616,425 1,215,112 (378,543) 3,452,994 487,411
Total 14,431,425 1,215,112 (1,278,543) 14,367,994 1,422,411
OPEB (see Note 14) 846,364 (267,507) 578,857
Net pension liability
(see Note 9) 4,963,769 (4,963,769)
Compensated absences
payable 1,461,776 1,214,402 (1,209,958) 1,466,220 1,216,630
Total $ 21,703,334 $ 2,429,514 $(7,719,777) $ 16,413,071 $ 2,639,041
Governmental activities other postemployment benefit obligations, compensated absences and
net pension liabilities are expected to be paid out of the general fund.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
51
NOTE 6 – LONG TERM LIABILITIES (Continued)
Beginning
Balance Additions Reductions
Ending
Balance
Amount
Due
Within
One Year
Business-type activities:
Direct borrowings and
direct placements
Loans payable $ 936,310 $ $ (362,977) $ 573,333 $ 378,185
Lease liability(see Note7) 485,659 (118,272) 367,387 160,229
OPEB(see Note 14) 36,185 (12,693) 23,492
Net pension liability
(see Note 9) 11,707 (11,707)
Compensated absences
payable 54,828 38,938 (35,596) 58,170 36,493
Total $ 1,039,030 $ 524,597 $ (541,245) $ 1,022,380 $ 574,907
Restatement for the implementation of GASB 87 as of October 1, 2021 related to the lease
liability was deemed insignificant.
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, 2022
52
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, 2022, 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
2023 $ 378,185 $ 19,974 $ 398,159
2024 195,148 4,074 199,295
$ 573,333 $ 24,048 $ 597,381
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, 2022
53
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, 2022, 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, 2022, 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
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 1,070,000 222,184 1,292,184
2028 - 2032 5,895,000 576,115 6,471,115
$ 10,915,000 $ 2,026,442 $ 12,941,442
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 - Contracts That Transfer Ownership
The Village entered into contract agreements for the purpose of financing the purchase of
vehicles. Principal and interest payments are due either quarterly or annually. As of September
30, 2022, the principal amounts outstanding were $3,452,994 and the net book value of the
equipment was $3,548,803. Amortization is included with depreciation expense. The interest
rates on the leases range from 1.74% 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, 2022
54
NOTE 6 – LONG TERM LIABILITIES (Continued)
Governmental Activities - Contracts That Transfer Ownership (Continued)
Annual debt service requirements to maturity are as follows:
Year Ending Principal Interest Total
2023 $ 487,411 $ 93,077 $ 580,488
2024 526,211 73,372 599,583
2025 539,239 60,344 599,583
2026 477,540 47,015 524,555
2027 626,792 35,267 662,059
2028 - 2031 795,801 40,504 836,305
$ 3,452,994 $ 349,579 $ 3,802,573
NOTE 7 – LEASES
Effective October 1, 2021, the Village implemented Governmental Accounting Standards Board
Statement 87 (GASB 87), Leases. Restatement for the implementation of GASB 87 as of
October 1, 2021 was deemed insignificant.
Right to Use Lease
Huntington National Bank
The Village has entered into a lease agreement with Huntington National Bank to lease eighty
golf carts and three other vehicles for the Country Club Fund. The lease has a term of 36 months
and is paid monthly from January 2022 to December 2024. The discount rate was 3% using the
Village’s estimated incremental borrowing rate.
Annual requirements to amortize long-term obligations and related interest as of
September 30, 2022 are as follows:
Year Ending Principal Interest Total
2023 $ 160,229 $ 8,830 $ 169,059
2024 165,103 3,957 169,060
2025 42,055 210 42,265
$ 367,387 $ 12,997 $ 380,384
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
55
NOTE 7 – LEASES (Continued)
Lessor Leases – General Fund
AT&T, Inc.
The Village has entered into a lease agreement with AT&T which allows the use of the Village’s
land for a transmission tower site. The initial term of the lease was for monthly payments over a
5-year period commencing on July 11, 2015, the agreement was subsequently amended for an
additional 5-year period with the option to extend for 4 successive terms in 5 year increments
with a 15% increase in monthly lease payments at every renewal. This extended the total term
with renewals to June 11, 2045. The Village expects AT&T to exercise the renewal options.
The discount rate was 3% using the Village’s estimated incremental borrowing rate.
Sprint Corporation
The Village has entered into a lease agreement with Sprint which allows the use of the Village’s
land for a transmission tower site. The initial term of the lease was for monthly payments over a
5-year period commencing on December 1, 1999, with three 5-year renewals. The agreement
was subsequently amended for an additional four 5-year renewals. The discount rate was 3%
using the Village’s estimated incremental borrowing rate. This extended the total term with
renewals to November 1, 2039. The Village expects Sprint to exercise the renewal options. The
original agreement and subsequent amendment provided for annual increases in rent of 3% and a
onetime increase of 10% in 2019. The discount rate was 3% using the Village’s estimated
incremental borrowing rate.
Verizon Communications, Inc.
The Village has entered into a lease agreement with Verizon which allows the use of the
Village’s land for a transmission tower site. The initial term of the lease was for monthly
payments over a 5-year period commencing on December 20, 2001, with three 5-year renewals.
In July 2020 the agreement was amended for and additional 5-year period with three 5 year
renewals. This extended the total term with renewals to November 20, 2041. The Village
expects Verizon to exercise the renewal options. The original agreement and subsequent
amendment provided for annual increases in rent of 3%. The discount rate was 3% using the
Village’s estimated incremental borrowing rate.
The General Fund is reporting a lease receivable of $2,991,755 at September 30, 2022. For the
fiscal year ended September 30, 2022, the General Fund reported lease revenue of $149,509 and
interest revenue of $83,152 related to lease payments received.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
56
NOTE 7 – LEASES (Continued)
Lessor Leases – General Fund (Continued)
The General Fund’s amortization of lease payments receivable as of September 30, 2022, are as
follows:
Year Ending Principal Interest Total
2023 $ 68,427 $ 88,824 $ 157,251
2024 73,972 86,695 160,667
2025 81,420 84,393 165,813
2026 92,534 81,781 174,315
2027 99,135 78,914 178,049
2028 - 2032 623,522 343,596 967,118
2033 - 2037 887,267 231,420 1,118,687
2038 - 2042 865,602 86,352 951,954
2043 - 2045 199,876 8,610 208,486
$ 2,991,755 $ 1,090,585 $ 4,082,340
Lessor Leases –Country Club Fund
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. Since the lease is cancelable by either party, the renewal
terms are not taken into account when calculating the lease receivable.
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 OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
57
NOTE 7 – LEASES (Continued)
Lessor Leases –Country Club Fund
The Country Club Fund is reporting a lease receivable of $248,279 at September 30, 2022. For
the fiscal year ended September 30, 2022, the Country Club reported lease revenue of $94,937
and interest revenue of $8,087. The Country Club Fund also received $124,269 in supplemental
rent and $87,032 in utility and property tax reimbursements for the year ended
September 30, 2022 under the terms of this lease agreement. Except for the interest revenue, the
lease income is recorded in operating revenues as the Village believes restaurant operations are
an integral part of running a Country Club.
The Country Club Fund’s amortization of lease payments receivable as of September 30, 2022,
are as follows:
Year Ending Principal Interest Total
2023 $ 93,835 $ 6,165 $ 100,000
2024 96,689 3,311 100,000
2025 57,755 578 58,333
$ 248,279 $ 10,054 $ 258,333
NOTE 8 – 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, 2022
58
NOTE 9 – 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, 2022, 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, 2022
59
NOTE 9 – 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, 2021:
GERF F&P
Inactive Plan Members or Beneficiaries
currently receiving benefits 47 33
Inactive Plan Members entitled to but
not yet receiving benefits 35 16
Active Plan Members 20 51
Total 102 100
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, 2022
60
NOTE 9 – 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, 2022
61
NOTE 9 – 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, 2022, is as
follows:
Asset Class Target Allocation
Domestic equity 42%
International equity 18
Domestic bonds 40
Total 100%
Rate of Return. For the year ended September 30, 2022, the annual money-weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was -17.51 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, 2022
62
NOTE 9 – 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 police officers the benefit accrual rate will
increase to 3.0% effective 10/1/22. 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, 2022, there was $852,332 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, 2022, 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, 2022, the annual money-weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was -14.09 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, 2022
63
NOTE 9 – 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. This will be increased to 8.5% effective 10/1/22 and 10% effective
10/1/23. 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 $414,511 during the fiscal year ended September 30, 2022.
All Retirement Plans
Net Pension Liability. The components of net pension liability of the Village on September 30,
2022, were as follows:
General
Employees
Fire and
Police
Total pension liability $ 19,191,970 $ 38,026,356
Plan fiduciary net position (16,267,288) (30,075,729)
Village's net pension liability(asset) $ 2,924,682 $ 7,950,627
Plan fiduciary net position as a
percentage of total pension liability 84.76% 79.09%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
64
NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as
of October 1, 2021 updated to September 30, 2022 using the following actuarial assumptions
applied to the September 30, 2022 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 FRS in their 7/1/20
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, 2022, are
summarized in the following table:
Asset Class
Long-Term Expected Real Rate of
Return
General
Employees
Fire and
Police
Domestic equity 9.44% 7.50%
International equity 10.07% 8.50%
Domestic bonds 4.20% 2.50%
Real estate N/A 4.50%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
65
NOTE 9 – 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 $ 5,317,868 $ 2,924,682 $ 931,847
Fire and Police Retirement System
Current
Discount
1% Decrease Rate 1% Increase
6.45% 7.45% 8.45%
Village's net pension liability $ 13,368,236 $ 7,950,627 $ 3,495,254
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, 2022, are reported using a measurement date of September 30, 2021. The above information
on the plan required by GASB 67 are reported using a measurement date of September 30, 2022.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
66
NOTE 9 – 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 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
Target
Allocation
Long-Term Expected Real
Rate of Return
General
Employees
Fire and
Police
General
Employees
Fire and
Police
Domestic equity 45% 55% 6.75% 7.50%
International equity 15 10 6.50% 8.50%
Domestic bonds 40 25 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, 2022
67
NOTE 9 – 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.
General Employees' Retirement System
Changes in Net Pension Liability
Using a measurement date of September 30, 2021, the components of the net pension liability
reported by the Village at September 30, 2022, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability(asset)
(a)-(b)
Balances at September 30, 2020 $ 18,440,365 $ 17,990,079 $ 450,286
Changes due to:
Service cost 211,929 211,929
Interest 1,232,553 1,232,553
Difference between expected
and actual experience (29,429) (29,429)
Changes of Assumptions (283,447) (283,447)
Employer contributions 197,770 (197,770)
Employee contributions 76,595 (76,595)
Benefit payments and refunds (784,490) (784,490)
Net investment income 3,135,663 (3,135,663)
Administrative expenses (74,760) 74,760
Total changes 347,116 2,550,778 (2,203,662)
Balances at September 30, 2021 $ 18,787,481 $ 20,540,857 $ (1,753,376)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
68
NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
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.
Plan fiduciary net position as a
percentage of total pension liability 109.33%
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
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)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2022, the Village recognized pension expense of
$(608,189). 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 $ $ 1,654,710
Differences between expected and actual
experience 9,810
Assumption changes 94,482
Village plan contributions subsequent
to the measurement date 165,928
Total $ 165,928 $ 1,759,002
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
69
NOTE 9 – 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 $165,928 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 $ (523,255)
2023 (385,753)
2024 (461,781)
2025 (388,213)
2026
Thereafter
$ (1,759,002)
Fire and Police Retirement System
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Current
Discount
1% Decrease Rate 1% Increase
6.45% 7.45% 8.45%
Village's net pension liability $ 4,481,219 $ (374,601) $ (4,372,496)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
70
NOTE 9 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Changes in Net Pension Liability
Using a measurement date of September 30, 2021, the components of the net pension liability
reported by the Village at September 30, 2022, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability(asset)
(a)-(b)
Balances at September 30, 2020 $ 32,833,494 $ 28,308,304 $ 4,525,190
Changes due to:
Service cost 1,026,423 1,026,423
Interest 2,574,829 2,574,829
Differences between expected
and actual experience (1,956,361) (1,956,361)
Change of benefit terms
Change of assumptions 464,035 464,035
Employer contributions 754,690 (754,690)
Employer contributions-state 350,777 (350,777)
Employee contributions 383,070 (383,070)
Employee contributions buy back 3,498 3,498
Benefit payments and refunds (841,165) (841,165)
Net investment income 5,607,643 (5,607,643)
Administrative expenses (87,463) 87,463
Total changes 1,271,259 6,171,050 (4,899,791)
Balances at September 30, 2021 $ 34,104,753 $ 34,479,354 $ (374,601)
Plan fiduciary net position as a
percentage of total pension liability 101.10%
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, 2022
71
NOTE 9 – 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, 2022, the Village recognized pension expense of
$361,193. 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 $ $ 1,722,084
Differences between expected and actual
experience 332,956 1,848,036
Change of assumptions 688,220 1,144,020
Village plan contributions subsequent
to the measurement date 1,077,197
Total $ 2,098,373 $ 4,714,140
The deferred outflows of resources totaling $1,077,197 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 $ (627,995)
2023 (661,308)
2024 (896,559)
2025 (923,566)
2064 (287,571)
Thereafter (295,965)
$ (3,692,964)
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
72
NOTE 9 – 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, 2022, using a measurement date of September 30, 2021, are as follows:
General
Employees
Fire and
Police Total
Total pension liability $ 18,787,481 $ 34,104,753 $ 52,892,234
Plan fiduciary net position 20,540,857 34,479,354 55,020,211
Net pension liability(asset) (1,753,376) (374,601) (2,127,977)
Deferred outflows of resources 165,928 2,098,373 2,264,301
Deferred inflows of resources 1,759,002 4,714,140 6,473,142
Pension expense (608,189) 361,193 (246,996)
Accounts Payable - - -
NOTE 10 – 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, 2022, $414,512 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, 2022
73
NOTE 11 – 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, 2022, is presented below.
STATEMENT OF FIDUCIARY NET POSITION
General
Employees’
Pension
Assets
Cash and cash equivalents $ 270,984
Investments:
Domestic equity securities 2,041,905
International equity securities 1,427,839
U.S. Government and agencies 1,370,777
Municipal bonds 932,212
Domestic corporate bonds 1,859,564
International corporate bonds 245,421
Domestic equity income ETF 2,602,239
International equity ETF 671,219
Fixed income mutual funds 1,699,649
Domestic equity mutual funds 2,329,589
International equity mutual funds 787,810
Accrued dividends and interest 50,723
Prepaids 3,617
Total assets 16,293,548
Liabilities
Accounts payable 26,260
Total liabilities 26,260
Net position
Held in trust for pension benefits and
other purposes
$ 16,267,288
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
74
NOTE 11 – PENSION PLAN FINANCIAL INFORMATION (Continued)
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
General
Employees’
Pension
Additions
Contributions
Employer $ 165,928
Plan members 68,012
Total contributions 233,940
Investment earnings
Dividends and interest 352,113
Change in the fair value
of investments (3,853,763)
Less investment expense 84,680
Total investment earnings (3,586,330)
Total additions (3,352,390)
Deductions
Administration 66,486
Refund of member contributions
Benefits 854,693
Total deductions 921,179
Change in net position (4,273,569)
Net position - beginning 20,540,857
Net position - ending $ 16,267,288
NOTE 12 – 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, 2022
75
NOTE 12 – 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, 2022, is listed below:
Village
Manager
Directors
General
Employees
Municipal
Employees
Employee contributions $ 4,883 $ 70,034 $ 93,164 $ 72,965
Village pension expense 24,413 138,067 238,979 192,814
Forfeitures - - 11,113 22,877
Payable as of fiscal year end - - - -
NOTE 13 – 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.
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, 2022
76
NOTE 14 – 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, 2022, the date of the last actuarial valuation, the following employees were
covered by benefit terms:
Participants
Active employees 123
Inactive employees currently receiving benefits 3
Inactive employees entitled to but not receiving benefits -
Total 126
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
77
NOTE 14 – 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 $602,349 was measured as of September 30, 2022 and was
determined by the actuarial valuation as September 30, 2022.
Actuarial Assumptions and Methods
The total OPEB liability was determined using the following actuarial assumptions and other
methods:
Valuation Date: September 30, 2022
Measurement Date: September 30, 2022
Discount Rate: 4.40% per annum
Source Bond Buyer GO 20-Bond Municipal Index
Salary Increase Rate: Service based between 2.4% to 8% per annum
Health Care Trend Rate: An initial rate of 5.75% decreasing 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, 2022
78
NOTE 14 – 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
20% 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. Adjustments to the
referenced table are based on the results of a
statewide experience study from 2013-2018. 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 4.40%.
Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at September 30, 2021 $ 882,549
Changes for the Year:
Service Cost 77,845
Interest Cost 20,623
Difference between expected and actual
experience
(102,114)
Changes of Assumptions and Other Inputs (239,114)
Benefit Payments (37,440)
Net Change in Total OPEB Liability (280,200)
Balance at September 30, 2022 $ 602,349
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
79
NOTE 14 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in Assumptions
The discount rate was 2.19% at 10/1/21 and 4.40% at 9/30/22. The coverage acceptance rate
was lowered from 25% to 20%.
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
(3.40%) (4.40%) (5.40%)
Total OPEB Liability $ 650,238 $ 602,349 $ 558,373
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 $ 541,843 $ 602,349 $ 673,215
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2022, the Village recognized OPEB expense of $(291,620). At
September 30, 2022, 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 $ 50,241 $ 1,099,471
Differences Between Expected and Actual Experience 598,536
Total $ 50,241 $ 1,698,007
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
80
NOTE 14 – 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, 2023 $ (390,088)
September 30, 2024 (390,088)
September 30, 2025 (390,086)
September 30, 2026 (136,102)
September 30, 2027 (145,853)
Thereafter (195,549)
$ (1,647,766)
NOTE 15 – 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 $229,484 to
Seacoast during the fiscal year for water and sewer service.
NOTE 16 –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, 2022
81
NOTE 16 –INTERFUND ACTIVITY (Continued)
Transfers
Interfund transfers during the year ended September 30, 2022, are as follows:
The $2,660,000 from the General Fund to the Capital Projects Fund were to fund capital projects
according to the original budget and subsequent budget amendments. The $378,500 from the
General Fund to the Country Club Enterprise Fund were to help fund the operations of the
Tennis and Pool activities.
NOTE 17 – CONTRACTS, COMMITMENTS AND CONTINGENCIES
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, 2023 is $499,420. On August 11,
2021, a second interlocal agreement was signed for five years expiring on September 30, 2026.
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.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
82
NOTE 18 – 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, 2022:
•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. 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.
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. 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.
83
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2022
NOTE 18 – NEW ACCOUNTING STANDARDS (Continued)
Recently Issued Accounting Pronouncements (Continued)
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections.
The requirements of this Statement will improve the clarity of the accounting and financial
reporting requirements for accounting changes and error corrections, which will result in greater
consistency in application in practice. In turn, more understandable, reliable, relevant, consistent,
and comparable information will be provided to financial statement users for making decisions
or assessing accountability. In addition, the display and note disclosure requirements will result
in more consistent, decision useful, understandable, and comprehensive information for users
about accounting changes and error corrections. The requirements of this Statement are effective
for accounting changes and error corrections made in fiscal years ending September 30, 2024,
and all reporting periods thereafter. Earlier application is encouraged
In June 2022, the GASB issued Statement No. 101, Compensated Absences. The unified
recognition and measurement model in this Statement will result in a liability for compensated
absences that more appropriately reflects when a government incurs an obligation. In addition,
the model can be applied consistently to any type of compensated absence and will eliminate
potential comparability issues between governments that offer different types of leave. The
model also will result in a more robust estimate of the amount of compensated absences that a
government will pay or settle, which will enhance the relevance and reliability of information
about the liability for compensated absences. The requirements of this Statement are effective for
fiscal years ending September 30, 2025, and all reporting periods thereafter. Earlier application is
encouraged.
Management is currently evaluating the impact of the adoption of these statements on the
Village’s financial statements.
THIS PAGE INTENTIONALLY LEFT BLANK
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
PENSION AND OTHER POSTEMPLOYMENT BENEFIT TREND INFORMATION
2018 2019 2020 2021 2022
Total OPEB liability
Service cost 274,702$ 113,906$ 119,601$ 72,316$ 77,845$
Interest cost 124,097 63,447 61,990 20,766 20,623
Change in benefit terms 655
Difference between expected
and actual experience (1,354,390) (102,114)
Changes of assumptions and other inputs (677,494)78,007 (960,663)14,544 (239,114)
Benefit payments (134,593)(56,645)(59,477)(28,872)(37,440)
Net change in total OPEB liability (1,767,678) 198,715 (837,894) 78,754 (280,200)
Total OPEB liability, beginning of year 3,210,652 1,442,974 1,641,689 803,795 882,549
Total OPEB liability, end of year 1,442,974$ 1,641,689$ 803,795$ 882,549$ 602,349$
Covered employee payroll 10,148,392$ 10,566,520$ 9,347,911$ 11,834,425$ 8,871,817$
Net OPEB liability as a percentage of
covered employee payroll 14.22%15.54%8.60%7.46%6.79%
Changes of Assumptions
Discount rate (3.36% at 10/1/17)4.15%3.58%2.41%2.19%4.40%
Coverage acceptance rate 40.00%40.00%25.00%25.00%20.00%
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, 2022
Schedule of Changes in Total OPEB Liability
Last Ten Fiscal Years
84
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(asset) (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, 2022
General Employees Retirement Fund
85
2020 2021 2022 2023
2019 2020 2021 2022
251,678$ 216,125$ 211,929$ 164,218$
1,201,578 1,211,026 1,232,553 1,157,772
(625,948) (343,736) (29,429) (62,808)
(283,447)
(567,472) (736,101) (784,490) (854,693)
259,836 347,314 347,116 404,489
17,833,215 18,093,051 18,440,365 18,787,481
18,093,051$ 18,440,365$ 18,787,481$ 19,191,970$
358,152$ 232,738$ 197,770$ 165,928$
97,522 85,829 76,595 68,012
721,786 1,497,222 3,135,663 (3,586,330)
(567,472) (736,101) (784,490) (854,693)
(38,690) (60,096) (74,760) (66,486)
571,298 1,019,592 2,550,778 (4,273,569)
16,399,189 16,970,487 17,990,079 20,540,857
16,970,487$ 17,990,079$ 20,540,857$ 16,267,288$
1,122,564$ 450,286$ (1,753,376)$ 2,924,682$
93.80%97.56%109.33%84.76%
1,834,767$ 1,612,777$ 1,472,661$ 1,316,077$
61.18%27.92%-119.06%222.23%
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%.
For the 2022 fiscal year the investment rate of return changed from 6.75% to 6.25% and inflation changed from 2.5% to 2.4%.
86
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(asset) (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 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, 2022
Fire and Police Retirement Fund
87
2020 2021 2022 2023
2019 2020 2021 2022
1,031,048$ 1,102,333$ 1,026,423$ 1,186,982$
2,236,125 2,423,113 2,574,829 2,639,997
(600,965)
1,660,762 617,530
(138,741) 319,251 (1,956,361) 419,712
205,896 (981,457) 464,035
6,698 3,498 3,498 3,498
(793,277) (799,809) (841,165) (946,116)
3,607,546 2,066,929 1,271,259 3,921,603
27,159,019 30,766,565 32,833,494 34,104,753
30,766,565$ 32,833,494$ 34,104,753$ 38,026,356$
918,263$ 863,762$ 754,690$ 662,686$
328,826 339,482 350,777 414,511
239,271 329,454 383,070 416,272
6,698 3,498 3,498 3,498
787,045 1,228,865 5,607,643 (4,870,319)
(793,277) (799,809) (841,165) (946,116)
(83,413) (85,101) (87,463) (84,157)
1,403,413 1,880,151 6,171,050 (4,403,625)
25,024,740 26,428,153 28,308,304 34,479,354
26,428,153$ 28,308,304$ 34,479,354$ 30,075,729$
4,338,412$ 4,525,190$ (374,601)$ 7,950,627$
85.90%86.22%101.10%79.09%
5,451,987$ 5,134,942$ 5,169,073$ 5,627,173$
79.57%88.13%-7.25%141.29%
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 retirement rates and the assumed rates of withdrawal.
For the 2022 fiscal year the maximum benefit changed from 75% to 80% of average monthly earnings, member contribution rates increased,
and the benefit accrual rate changed from 2.75% to 3.00% for police officers.
88
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%
2022 162,168 165,928 (3,760) 1,316,077 12.61%
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%
2022 1,074,227 1,077,197 (2,970) 5,627,173 19.14%
*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%
2022 -17.51%-14.09%
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, 2022
Last Ten Fiscal Years
89
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, 2020 October 1, 2020
Actuarial Cost Method Frozen Entry-Age Entry Age Normal
Amortization Method Level Dollar, closed Level Percentage of Compensation
Remaining Amortization Period 30 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%7.45%
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, 2022
90
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, 2022
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 21,799,413$ 21,799,413$ 22,349,999$ 550,586$
Licenses and permits 1,310,200 1,310,200 1,764,430 454,230
Intergovernmental 1,477,720 1,477,720 1,937,865 460,145
Charges for services 1,778,280 1,778,280 1,968,268 189,988
Fines and forfeitures 121,212 121,212 169,045 47,833
Investment 129,902 129,902 (272,252) (402,154)
Miscellaneous 11,680 11,680 364,911 353,231
Total revenues 26,628,407 26,628,407 28,282,266 1,653,859
Expenditures
Current
General government 3,431,083 3,432,083 3,612,174 (180,091)
Public safety 10,517,083 10,519,467 11,183,895 (664,428)
Public works 5,511,446 5,543,500 4,988,651 554,849
Community development and planning 1,743,989 1,929,900 1,437,597 492,303
Leisure services 2,341,797 2,433,611 2,431,335 2,276
Other government 185,412 185,412 185,412
Capital outlay 10,000 1,389,682 1,583,473 (193,791)
Debt service
Principal payments 1,278,543 1,278,543 1,278,543
Interest paid on debt 570,504 570,504 476,504 94,000
Total expenditures 25,589,857 27,282,702 26,992,172 290,530
Excess of revenues over
expenditures 1,038,550 (654,295) 1,290,094 1,944,389
Other financing sources (uses)
Appropriated fund balance 2,477,732 (2,477,732)
Capital lease proceeds 1,215,113 1,215,112 (1)
Transfer out (1,038,550) (3,038,550) (3,038,550)
Total other financing uses (1,038,550) 654,295 (1,823,438) (2,477,733)
Net change in fund balances $ $ (533,344) (533,344)$
Fund Balances
Beginning of year 16,576,720
End of year 16,043,376$
91
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 legal level of budgetary control is at the fund level.
September 30, 2022
92
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, 2022
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
Village Council
Personnel services 68,718$ 68,718$ 71,289$ (2,571)$ -3.74
Operating expenses 96,100 97,100 101,112 (4,012) -4.13
Total Village Council 164,818 165,818 172,401 (6,583) -3.97
Village Manager
Personnel services 489,360 489,360 489,575 (215) -0.04
Operating expenses 59,950 59,950 97,574 (37,624) -62.76
Total Village Manager 549,310 549,310 587,149 (37,839) -6.89
Village Finance
Personnel services 622,589 622,589 624,192 (1,603) -0.26
Operating expenses 56,400 56,400 71,660 (15,260) -27.06
Total Village Finance 678,989 678,989 695,852 (16,863) -2.48
Village Attorney
Operating expenses 185,000 185,000 244,793 (59,793) -32.32
Village Clerk
Personnel services 305,320 305,320 280,590 24,730 8.10
Operating expenses 61,290 61,290 60,274 1,016 1.66
Total Village Clerk 366,610 366,610 340,864 25,746 7.02
Information Technology
Personnel services 435,236 435,236 435,290 (54) -0.01
Operating expenses 98,500 98,500 140,346 (41,846) -42.48
Total Information Technology 533,736 533,736 575,636 (41,900) -7.85
Human Resources
Personnel services 336,890 336,890 310,097 26,793 7.95
Operating expenses 108,050 108,050 169,828 (61,778) -57.18
Total Human Resources 444,940 444,940 479,925 (34,985) -7.86
Police
Personnel services 5,619,607 5,619,607 6,123,970 (504,363) -8.98
Operating expenses 1,054,187 1,054,187 1,059,737 (5,550) -0.53
Total Police 6,673,794 6,673,794 7,183,707 (509,913) -7.64
Fire Rescue
Personnel services 3,364,689 3,364,689 3,537,514 (172,825) -5.14
Operating expenses 357,760 360,144 325,244 34,900 9.69
Total Fire Rescue 3,722,449 3,724,833 3,862,758 (137,925) -3.70
(Continued)
93
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2022
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
(Continued)
Public Works Administration
Personnel services 403,239$ 403,239$ 427,359$ (24,120)$ -5.98
Operating expenses 92,000 92,000 119,648 (27,648) -30.05
Total Public Works 495,239 495,239 547,007 (51,768) -10.45
Sanitation
Personnel services 1,564,841 1,564,841 1,327,923 236,918 15.14
Operating expenses 304,000 304,000 421,314 (117,314) -38.59
Total Sanitation 1,868,841 1,868,841 1,749,237 119,604 6.40
Facility Services
Personnel services 192,090 192,090 218,405 (26,315) -13.70
Operating expenses 642,200 649,185 344,891 304,294 46.87
Total Facility Services 834,290 841,275 563,296 277,979 33.04
Street Maintenance
Personnel services 398,456 398,456 324,135 74,321 18.65
Operating expenses 1,374,000 1,394,250 1,247,991 146,259 10.49
Total Street Maintenance 1,772,456 1,792,706 1,572,126 220,580 12.30
Vehicle Maintenance
Personnel services 282,020 282,020 225,483 56,537 20.05
Operating expenses 258,600 258,600 328,173 (69,573) -26.90
Total Vehicle Maintenance 540,620 540,620 553,656 (13,036) -2.41
Planning and Engineering
Personnel services 302,008 302,008 201,724 100,284 33.21
Operating expenses 149,400 320,717 123,660 197,057 61.44
Total Planning and Engineering 451,408 622,725 325,384 297,341 47.75
Building
Personnel services 809,147 809,147 616,013 193,134 23.87
Operating expenses 239,750 254,344 265,212 (10,868) -4.27
Total Building 1,048,897 1,063,491 881,225 182,266 17.14
Code Enforcement
Personnel services 219,409 219,409 211,448 7,961 3.63
Operating expenses 27,275 27,275 22,540 4,735 17.36
Total Code Enforcement 246,684 246,684 233,988 12,696 5.15
Recreation
Personnel services 610,206 610,206 529,079 81,127 13.30
Operating expenses 712,700 804,514 865,579 (61,065) -7.59
Total Leisure Services-Recreation 1,322,906 1,414,720 1,394,658 20,062 1.42
(Continued)
94
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2022
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
(Continued)
Library
Personnel services 733,469$ 733,469$ 696,092$ 37,377$ 5.10
Operating expenses 187,422 187,422 247,573 (60,151) -32.09
Total Library 920,891 920,891 943,665 (22,774) -2.47
Special Events
Operating expenses 98,000 98,000 93,012 4,988 5.09
Total Special Events 98,000 98,000 93,012 4,988 5.09
Debt Service 1,849,047 1,849,047 1,755,047 94,000 5.08
Reserves and contingencies
Operating expenses 4,819 3,329 1,490 30.92
Contingencies 185,412 185,412 185,412 100.00
185,412 190,231 3,329 186,902 98.25
Non-Departmental
Operating expenses 625,520 625,520 649,984 (24,464) -3.91
625,520 625,520 649,984 (24,464) -3.91
Capital Outlay
Information Technology
Village Clerk
Police 14,897 (14,897)
Facility Services 6,123 (6,123)
Vehicle Maintenance 26,392 (26,392)
Street Maintenance 55,600 100,000 (44,400)
Sanitation 107,099 (107,099)
Leisure Services-Recreation 10,000 19,469.00 8,488 10,981
Library 5,862 (5,862)
Capital leases 1,215,113 1,215,112 1 0.00
Non-Departmental 99,500 99,500
Total Capital Outlay 10,000 1,389,682 1,583,473 (193,791) -13.94
Total expenditures 25,589,857$ 27,282,702$ 26,992,172$ 290,530$ 1.06%
95
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 $ 1,987$ 321,665$ $ 2,561,633$ 2,885,285$
Due from other funds 72,091 72,091
Total assets $ 1,987$ 321,665$ $ 2,633,724$ 2,957,376$
Liabilities
Accounts payable $ $ 108$ $ 52,593$ 52,701$
Due to other funds 2,946 2,946
Total liabilities 2,946 108 52,593 55,647
Fund balances
Assigned (2,946)1,987 321,557 2,581,131 2,901,729
Total fund balances (2,946) 1,987 321,557 2,581,131 2,901,729
Total liabilities, deferred inflows of
resources, and fund balances $ 1,987$ 321,665$ $ 2,633,724$ 2,957,376$
September 30, 2022
96
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, 2022
Special Revenue Funds
Public Northlake On-Behalf Capital Total Nonmajor
Safety Boulevard Pension Projects Governmental
Fund Fund Recreation Contributions Fund Funds
Revenues
Intergovernmental $ $ $ 414,512$ $ 414,512$
Total revenues 414,512 414,512
Expenditures
Current
Public safety 3,703 414,512 418,215
Capital outlay 179,579 836,235 1,015,814
Total expenditures 3,703 179,579 414,512 836,235 1,434,029
Excess (deficiency) of revenues over
(under) expenditures (3,703) (179,579) (836,235) (1,019,517)
Other financing sources (uses)
Transfers in 253,315 2,660,000 2,913,315
Transfers out (253,315) (253,315)
Total other financing sources (uses) 253,315 2,406,685 2,660,000
Net changes in fund balances (3,703) 73,736 1,570,450 1,640,483
Fund balances - Beginning of year 757 1,987 247,821 1,010,681 1,261,246
Fund balances - End of year (2,946)$ 1,987$ 321,557$ $ 2,581,131$ 2,901,729$
97
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 270,984$ 199,981$ 470,965$
Investments:
Domestic common equity securities 2,041,905 14,832,904 16,874,809
International common equity securities 1,427,839 2,749,261 4,177,100
U.S. Government and agencies 1,370,777 5,023,078 6,393,855
Municipal bonds 932,212 402,308 1,334,520
Domestic corporate bonds 1,859,564 2,155,638 4,015,202
International corporate bonds 245,421 219,178 464,599
Domestic equity exchange traded funds 2,602,239 2,602,239
International equity exchange traded 671,219 671,219
Fixed income mutual funds 1,699,649 1,699,649
Domestic equity mutual funds 2,329,589 2,329,589
International equity mutual funds 787,810 787,810
Real estate investment fund 3,797,505 3,797,505
Money market mutual funds 676,455 676,455
Accrued interest and dividends 50,723 41,770 92,493
Prepaids 3,617 4,251 7,868
Total assets 16,293,548 30,102,329 46,395,877
Liabilities
Accounts payable 26,260 26,600 52,860
Total liabilities 26,260 26,600 52,860
Net Position restricted for pensions 16,267,288$ 30,075,729$ 46,343,017$
September 30, 2022
98
Fire and Total
General Police Employee
Employees Officers Retirement
Pension Pension Funds
Additions
Contributions
Employer 165,928$ 662,686$ 828,614$
Plan members 68,012 397,400 465,412
DROP contributions 22,370 22,370
State on-behalf payments 414,511 414,511
Total contributions 233,940 1,496,967 1,730,907
Investment earnings
Dividends and interest 352,113 724,430 1,076,543
Change in fair value of investments (3,853,763) (5,441,619) (9,295,382)
Total investment earnings (3,501,650) (4,717,189) (8,218,839)
Less: investment expenses 84,680 153,130 237,810
Total investment earnings (3,586,330) (4,870,319) (8,456,649)
Total additions (3,352,390) (3,373,352) (6,725,742)
Deductions
Administration 66,486 84,157 150,643
Refund of member contributions 16,692 16,692
Benefits 854,693 929,424 1,784,117
Total deductions 921,179 1,030,273 1,951,452
Change in net position (4,273,569) (4,403,625) (8,677,194)
Net position - beginning 20,540,857 34,479,354 55,020,211
Net position - ending 16,267,288$ 30,075,729$ 46,343,017$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Position
For the Year Ended September 30, 2022
99
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 3,397,900$ 3,397,900$ 4,283,032$ 885,132$ 26.05
Golf shop revenues 462,500 462,500 680,550 218,050 47.15
Driving range revenues 375,000 375,000 501,491 126,491 33.73
Restaurant revenues 328,000 328,000 315,699 (12,301) -3.75
Tennis revenues 726,300 726,300 804,829 78,529 10.81
Pool revenues 172,500 172,500 210,920 38,420 22.27
Interest revenues 10,000 10,000 6,669 (3,331)
Miscellaneous 18,000 18,000 42,211 24,211 134.51
Capital grants 50,000 50,000
Operating transfers 378,550 378,550 378,550
Appropriated net position 227,319 331,073 (331,073) -100.00
Total revenues 6,096,069 6,199,823 7,273,951 1,074,128 17.33
Golf Maintenance
Operating expenses 1,781,900 1,835,530 1,936,631 (101,101) -5.51
Capital outlay 200,000 222,890 246,121 (23,231)
Total Golf Maintenance 1,981,900 2,058,420 2,182,752 (124,332) -6.04
Clubhouse and Grounds
Personnel services 78,452 78,452 63,026 15,426 19.66
Operating expenses 434,615 434,615 460,208 (25,593) (5.89)
Total Clubhouse and Grounds 513,067 513,067 523,234 (10,167) (1.98)
Golf Pro Shop and Range
Personnel services 862,129 862,129 864,512 (2,383) -0.28
Operating expenses 665,100 665,100 890,430 (225,330) -33.88
Capital outlay 19,812 (19,812)
Total Golf Pro Shop and Range 1,527,229 1,527,229 1,774,754 (247,525) -16.21
Food and Beverage
Operating expenses 15,000 15,000 19,748 (4,748) -31.65
Tennis
Personnel services 638,389 638,389 568,079 70,310
Operating expenses 176,150 181,873 155,440 26,433 14.53
Capital outlay 10,126 10,126
Total Tennis 814,539 830,388 733,645 96,743 11.65
Pool
Personnel services 176,347 176,347 122,015 54,332
Operating expenses 182,695 182,695 178,415 4,280 2.34
Capital outlay 11,385 11,385
Total Pool 359,042 370,427 311,815 58,612 15.82
(Continued)
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, 2022
100
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
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, 2022
(Continued)
Administration
Personnel services 288,103$ 288,103$ 257,844$ 30,259$ 10.50
Operating expenses 28,500 28,500 58,490 (29,990) -105.23
Total Administration 316,603 316,603 316,334 269 0.08
Insurance and General Liability
Operating expenses 25,000 25,000 23,293 1,707 6.83
Reserves
Operating 10,000 10,000 6,960 3,040 30.40
Capital 100,000 100,000 100,000 0.00
Total Reserves 110,000 110,000 106,960 3,040 2.76
Debt service
Debt service 433,689 433,689 433,689
Total expenses on the budgetary basis 6,096,069 6,199,823 6,426,224 (226,401) (3.65)
Revenues under expenses $ $ 847,727$ 847,727$
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 6,426,224$
Pension and OPEB adjustments (17,992)
Less: capital reserve (100,000)
Less: capital outlay costs capitalized (270,962)
Less: debt service (433,689)
Less: lease adjustment (5,380)
Add: depreciation expense 884,527
Total operating expenses 6,482,728$
101
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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 102
Changes in Net Position 103
Fund Balances, Governmental Funds 105
Changes in Fund Balances, Governmental Fund 106
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 108
Property Tax Rates - Direct and Overlapping Governments 109
Principal Property Taxpayers 110
Property Tax Levies and Collections 111
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 112
Direct and Overlapping Governmental Activities Debt 113
Pledged-Revenue Coverage 114
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 115
Principal Employers 116
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 117
Operating Indicators by Function/Program 118
Capital Asset Statistics by Function/Program 119
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
STATISTICAL SECTION
2013 2014 2015 (1)2016 2017
Governmental Activities:
Net investment in capital assets 15,431,966$ 14,966,927$ 14,711,016$ 14,102,547$ 13,484,731$
Restricted 317,190 180,755 177,431 398,519 992,538
Unrestricted 11,973,715 11,314,096 6,168,366 6,677,850 6,536,225
Total governmental activities net position 27,722,871 26,461,778 21,056,813 21,178,916 21,013,494
Business-Type Activities:
Net investment in capital assets 1,998,974 1,907,746 1,833,975 1,880,421 1,991,168
Unrestricted 668,434 514,167 544,523 418,726 361,461
Total business-type activities net position 2,667,408 2,421,913 2,378,498 2,299,147 2,352,629
Primary government:
Net investment in capital assets 17,430,940 16,874,673 16,544,991 15,982,968 15,475,899
Restricted 317,190 180,755 177,431 398,519 992,538
Unrestricted 12,642,149 11,828,263 6,712,889 7,096,576 6,897,686
Total primary government net position 30,390,279$ 28,883,691$ 23,435,311$ 23,478,063$ 23,366,123$
2018 2019 2020 2021 2022
Governmental Activities:
Net investment in capital assets 15,429,484$ 18,814,116$ 22,423,120$ 18,910,112$ 20,231,457$
Restricted 484,568 525,536 986,489 1,418,916 3,331,270
Unrestricted 6,658,744 7,504,062 6,689,693 10,078,079 17,346,639
Total governmental activities net position 22,572,796 26,843,714 30,099,302 30,407,107 40,909,366
Business-Type Activities:
Net investment in capital assets 3,056,715 3,422,142 2,947,241 5,874,752 5,976,057
Unrestricted (1,324,978) (3,162,414) (3,161,738) (2,599,491) (1,248,264)
Total business-type activities net position 1,731,737 259,728 (214,497) 3,275,261 4,727,793
Primary government:
Net investment in capital assets 18,486,199 22,236,258 25,370,361 24,784,864 26,207,514
Restricted 484,568 525,536 986,489 1,418,916 3,331,270
Unrestricted 5,333,766 4,341,648 3,527,955 7,478,588 16,098,375
Total primary government net position 24,304,533$ 27,103,442$ 29,884,805$ 33,682,368$ 45,637,159$
(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
102
VILLAGE OF NORTH PALM BEACH
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING) Unaudited
Fiscal Year
2013 2014 2015 2016 2017
Expenses
Governmental activities:
General government 2,489,488$ 2,696,298$ 3,028,716$ 2,985,185$ 3,205,903$
Public safety 8,282,062 9,259,442 9,311,441 9,308,778 9,905,815
Public works 4,482,973 4,485,246 4,963,704 5,106,651 5,707,570
Community development and planning 966,245 1,046,299 1,308,924 1,382,121 1,255,115
Leisure services 2,974,290 3,114,213 2,973,687 2,904,715 3,114,720
Interest on long-term debt 266,892
Total governmental activities expenses 19,195,058 20,601,498 21,586,472 21,687,450 23,456,015
Business-type activities:
Country club 3,629,120 3,902,131 3,842,660 3,845,547 2,903,224
Stormwater
Total business-type activities 3,629,120 3,902,131 3,842,660 3,845,547 2,903,224
Total primary government expenses 22,824,178$ 24,503,629$ 25,429,132$ 25,532,997$ 26,359,239$
Program Revenues
Governmental activities:
Charges for services:
General government 107,976$ 110,694$ 131,445$ 128,459$ 134,249$
Public safety 522,121 592,644 537,064 628,529 557,265
Public works 403,447 402,814 514,354 565,011 547,596
Community development and planning 993,059 1,621,471 1,163,875 1,213,032 1,222,464
Leisure services 1,087,182 1,096,021 1,006,382 994,918 1,022,175
Other government
Operating grants and contributions 91,901 90,520 380,567 365,823 377,339
Capital grants and contributions 233,949 16,098 26,548 229,161 102,187
Total governmental activities program revenues 3,439,635 3,930,262 3,760,235 4,124,933 3,963,275
Business-type activities:
Charges for services:
Country club 3,577,446 3,645,706 3,788,852 3,720,573 2,946,432
Stormwater
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues 3,577,446 3,645,706 3,788,852 3,720,573 2,946,432
Total primary government program revenues 7,017,081$ 7,575,968$ 7,549,087$ 7,845,506$ 6,909,707$
Net (Expense)/Revenue
Governmental activities (15,755,423)$ (16,671,236)$ (17,826,237)$ (17,562,517)$ (19,492,740)$
Business-type activities (51,674) (256,425) (53,808) (124,974) 43,208
Total primary government net expense (15,807,097)$ (16,927,661)$ (17,880,045)$ (17,687,491)$ (19,449,532)$
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes 9,981,391$ 10,154,695$ 11,364,888$ 12,253,917$ 13,091,985$
Local option gas taxes 261,852 266,147 282,549 288,150 305,700
Local option infrastruture surtax 552,600
Utility service taxes 2,197,760 2,277,366 2,267,118 2,303,294 2,413,679
Franchise taxes 1,160,780 1,232,669 1,253,139 1,263,812 1,306,997
Sales and use taxes 1,187,221 1,260,617 1,332,209 1,363,954 1,371,890
Unrestricted grants and contributions
Investment earnings 37,029 16,653 108,794 103,353 126,926
Miscellaneous 38,219 146,360 57,137 60,026 150,698
Contributions for Support Our Troops
Gain on disposl of equipment 55,636 30,457 48,114 6,843
Transfers
Total governmental activities 14,864,252 15,410,143 16,696,291 17,684,620 19,327,318
Business-type activities:
Investment income 8,555 10,930 10,393 9,230 10,274
Miscellaneous 69,905 36,393
Transfers
Total business-type activities 78,460 10,930 10,393 45,623 10,274
Total primary government 14,942,712$ 15,421,073$ 16,706,684$ 17,730,243$ 19,337,592$
Change in net position
Governmental activities (891,171)$ (1,261,093)$ (1,129,946)$ 122,103$ (165,422)$
Business-type activities 26,786 (245,495) (43,415) (79,351) 53,482
Total primary government (864,385)$ (1,506,588)$ (1,173,361)$ 42,752$ (111,940)$
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
103
2018 2019 2020 2021 2022
3,213,886$ 3,312,770$ 3,541,302$ 3,819,733$ 3,565,793$
10,045,757 10,505,278 12,103,224 11,260,437 10,899,752
5,911,225 5,603,991 5,633,427 5,416,934 5,359,535
1,458,523 1,685,525 1,398,876 1,261,701 1,406,266
3,058,410 3,037,981 2,795,698 2,706,225 3,441,248
499,929 489,988 520,755 477,717 470,896
24,187,730 24,635,533 25,993,282 24,942,747 25,143,490
2,912,523 2,879,376 4,242,674 5,942,293 6,566,206
123,196
2,912,523 2,879,376 4,242,674 5,942,293 6,689,402
27,100,253$ 27,514,909$ 30,235,956$ 30,885,040$ 31,832,892$
140,998$ 147,104$ 152,779$ 217,227$ 200,020$
548,019 687,905 488,393 496,492 597,258
510,732 538,459 511,916 461,166 464,084
1,495,298 1,799,878 1,723,949 1,955,663 2,139,067
876,174 899,164 853,581 375,196 544,283
422,255 395,376 717,982 602,032 7,109,940
9,591 808,193 850,187 21,775 30,817
4,003,067 5,276,079 5,298,787 4,129,551 11,085,469
2,946,432 1,406,563 3,768,449 5,903,220 6,833,669
479,459
50,000
2,254,638 1,406,563 3,768,449 5,903,220 7,363,128
6,257,705$ 6,682,642$ 9,067,236$ 10,032,771$ 18,448,597$
(20,184,663)$ (19,359,454)$ (20,694,495)$ (20,813,196)$ (14,058,021)$
(657,885) (1,472,813) (474,225) (39,073) 673,726
(20,842,548)$ (20,832,267)$ (21,168,720)$ (20,852,269)$ (13,384,295)$
15,003,141$ 16,185,283$ 16,991,314$ 17,629,392$ 17,833,603$
302,208 307,130 273,428 283,233 297,106
879,565 922,937 869,852 1,011,627 1,228,691
2,511,877 2,521,954 2,558,092 2,539,175 2,726,954
1,294,280 1,352,464 1,304,936 1,354,110 1,492,336
1,413,335 1,448,423 1,345,508 1,548,330 1,868,788
376,227 811,915 502,335 81,338 (248,726)
268,471 80,266 104,618 181,109 92,879
74,449 21,384 29,460
(3,528,697) (760,811)
22,123,553 23,630,372 23,950,083 21,121,001 24,560,280
13,874 804 134 17,995
3,528,697 760,811
13,874 804 3,528,831 778,806
22,137,427$ 23,631,176$ 23,950,083$ 24,649,832$ 25,339,086$
1,938,890$ 4,270,918$ 3,255,588$ 307,805$ 10,502,259$
(644,011) (1,472,009) (474,225) 3,489,758 1,452,532
1,294,879$ 2,798,909$ 2,781,363$ 3,797,563$ 11,954,791$
104
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2013 2014 2015 2016 2017
General Fund
Nonspendable 293,674$ 244,438$ 155,594$ 358,606$ 183,220$
Restricted 317,190 135,255 131,931 353,019 781,756
Committed 442,833
Assigned 200,016 216,808 319,888 208,204 316,266
Unassigned 11,451,668 12,391,362 10,802,623 10,724,049 11,811,468
Total general fund 12,705,381$ 12,987,863$ 11,410,036$ 11,643,878$ 13,092,710$
All other Governmental Funds
Restricted 45,500$ 45,500$ 45,500$ 13,988,744$
Assigned
Special revenue funds 47,652$ 325,152 318,526 508,481 388,981
Capital projects funds 1,799,617 841,850 1,448,620 1,604,073 1,670,196
Unassigned
Total all other governmental funds 1,847,269$ 1,212,502$ 1,812,646$ 2,158,054$ 16,047,921$
2018 2019 2020 2021 2022
General Fund
Nonspendable 2,789,824$ 2,789,824$ 2,325,778$ 2,102,739$ 1,839,603$
Restricted 61,227 61,227 79,730 87,342 180,748
Committed
Assigned 582,008 582,008 176,865 494,163 369,653
Unassigned 8,177,758 8,177,758 11,622,285 13,892,476 13,653,372
Total general fund 11,610,817$ 11,610,817$ 14,204,658$ 16,576,720$ 16,043,376$
All other Governmental Funds
Restricted 11,826,016$ 464,309$ 906,759$ 1,331,574$ 1,022,545$
Assigned
Special revenue funds 3,506 3,507 263,798 252,000 6,915,128
Capital projects funds 5,398,245 3,727,482 1,151,011 1,010,681 2,581,131
Unassigned (114,279) (421,599) - (2,946)
Total all other governmental funds 17,113,488$ 3,773,699$ 2,321,568$ 2,594,255$ 10,515,858$
VILLAGE OF NORTH PALM BEACH
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
105
VILLAGE OF NORTH PALM BEACH
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
Fiscal Year
2013 2014 2015 2016 2017
Revenues:
Taxes 13,601,783$ 13,930,877$ 15,167,694$ 16,109,173$ 17,118,361$
Licenses and Permits 803,337 1,344,653 947,158 1,235,782 997,656
Intergovernmental 1,817,603 1,688,608 1,758,246 1,765,836 2,417,809
Charges for services 2,141,437 2,320,305 2,231,673 2,364,013 2,321,298
Fines and forfeitures 131,524 117,869 128,235 91,534 124,395
Investment earnings 37,029 16,653 108,794 103,353 126,926
Miscellaneous 207,076 258,086 122,107 191,250 157,063
Total revenues 18,739,789 19,677,051 20,463,907 21,860,941 23,263,508
Expenditures:
General government 2,346,281 2,541,546 2,904,553 2,876,521 2,970,223
Public safety 7,947,221 8,947,627 8,966,077 9,129,947 9,166,060
Public works 3,733,977 3,773,689 4,255,636 4,266,749 4,882,159
Community development 933,117 1,004,642 1,270,399 1,351,061 1,190,759
Leisure services 2,491,559 2,644,598 2,514,495 2,448,164 2,591,866
Other government
Capital outlay 1,110,051 1,117,234 1,530,430 1,209,249 2,123,742
Debt service
Principal payments
Interest paid on debt
Total expenditures 18,562,206 20,029,336 21,441,590 21,281,691 22,924,809
Excess of revenues over (under) expenditures 177,583 (352,285) (977,683) 579,250 338,699
Other financing sources (uses)
Transfers in 265,000 323,000 2,091,246 1,503,750 1,503,750
Transfers out (265,000) (323,000) (2,091,246) (1,503,750) (1,503,750)
Financing contracts
Proceeds from debt issuance 15,000,000
Miscellaneous
Total other financing sources (uses) 15,000,000
Net change in fund balances 177,583$ (352,285)$ (977,683)$ 579,250$ 15,338,699$
Debt service as a percentage of noncapital
expenditures -----
106
2018 2019 2020 2021 2022
19,111,506$ 20,366,831$ 21,127,770$ 21,805,910$ 22,349,999$
1,222,594 1,522,913 1,320,361 1,574,639 1,764,430
2,679,389 2,910,395 3,857,230 3,189,191 10,155,774
2,200,860 2,399,174 2,169,814 1,726,853 1,968,268
100,140 100,188 197,343 154,410 169,045
376,227 811,915 502,335 81,338 (248,726)
412,513 510,688 160,147 296,245 364,911
26,103,229 28,622,104 29,335,000 28,828,586 36,523,701
3,059,623 3,275,570 3,265,210 3,507,052 3,612,174
9,669,361 10,350,598 10,418,956 10,853,605 11,602,110
5,313,834 5,255,606 5,300,077 5,117,986 4,988,651
1,429,764 1,532,428 1,382,443 1,292,216 1,437,597
2,613,664 2,664,689 2,305,309 1,695,054 2,431,335
5,507,617 15,487,329 5,094,135 3,528,772 4,145,090
680,000 882,777 934,496 1,106,148 1,278,543
613,101 488,786 502,193 491,022 476,504
28,886,964 39,937,783 29,202,819 27,591,855 29,972,004
(2,783,735) (11,315,679) 132,181 1,236,731 6,551,697
4,963,307 407,000 844,475 625,280 2,913,315
(4,963,307) (407,000) (844,475) (899,280) (3,291,865)
343,299 1,009,529 1,682,018 1,215,112
343,299 1,009,529 1,408,018 836,562
(2,783,735)$ (10,972,380)$ 1,141,710$ 2,644,749$ 7,388,259$
-5.53%5.70%5.90%6.79%
107
Fiscal Year
Ended
Sept 30,
Tax Roll
Year Residential Property
Commercial
Property
Personal
Property
Total Net Market -
Assessed Value
Total Direct
Tax Rate
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
2022 2021 2,244,316,264 336,972,923 42,155,674 2,623,444,861 7.0500
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
108
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
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
2022 2021 7.0500 6.8750 4.8149 1.6386 20.3785
Note:All millage rates are based on $1 for every $1,000 of assessed value.
Source:North Palm Beach: Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments
(1)Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
Overlapping Rates (1)
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
109
Percentage Percentage
of Total of Total
Village Net Village Net
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayers Value Rank Value Value Rank Value
Olen Residential Realty 40,521,502 1 1.54%19,464,791 1 1.32%
SHM Old Port Cove LLC 34,848,306 2 1.33%
Sanctuary Bay Trust Corporation 31,963,122 3 1.22%15,461,523 4 1.04%
Crystal Cove Commons LLC 28,581,506 4 1.09%
Florida Power & Light 27,397,787 5 1.04%16,063,163 3 1.09%
Shoppes at City CentreLLC 18,149,913 6 0.69%
New Country Motor Cars of PB LLC 16,842,476 7 0.64%10,702,476 5 0.72%
SHM North Palm Beach LLC 12,766,261 8 0.49%
Chouest Gary 10,573,076 9 0.40%
NP Devland Holdings LLC 7,739,387 10 0.30%
Old Port Cove Equities, INC 17,956,563 2 1.21%
Crystal Tree Property Owners 7,000,000 6 0.47%
CF02 Palm Beach III LP 7,000,000 7 0.47%
Old Port Cove Holdings, INC 6,663,383 8 0.45%
Bozzuto, Michael A 6,047,908 9 0.41%
Village Shoppers at US 1LLC 4,770,298 10 0.32%
Total 229,383,336$ 8.74%111,130,105$ 7.50%
Source: Palm Beach Country Appraiser
VILLAGE OF NORTH PALM BEACH
PRINCIPAL PROPERTY TAXPAYERS
2022 & 2013 Presented
2022 2013
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
110
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
2013 2012 10,424,715 9,948,550 96.05%36,366 9,984,916 96.40%
2014 2013 10,358,172 10,097,763 96.14%57,493 10,155,256 96.68%
2015 2014 10,503,598 11,350,738 96.51%14,777 11,365,515 96.64%
2016 2015 11,761,226 12,197,736 103.71%57,133 12,254,869 104.20%
2017 2016 12,627,355 13,051,272 103.36%41,267 13,092,539 103.68%
2018 2017 13,519,978 14,999,572 110.94%3,390 15,002,962 110.97%
2019 2018 15,537,277 16,176,654 104.12%6,223 16,182,877 104.16%
2020 2019 16,749,038 16,980,948 101.38%7,965 16,988,913 101.43%
2021 2020 17,584,371 17,608,184 100.14%21,233 17,629,417 100.26%
2022 2021 18,249,331 17,832,252 97.71%1,406 17,833,658 97.72%
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
111
VILLAGE OF NORTH PALM BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
Business-type
Activities
Fiscal Year Percent of
Ended Loans Financing Loans Financing Median Personal Per
Sept 30,Payable Contracts Payable Contracts Total Income (1)Capita
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
2022 10,915,000 3,452,994 573,333 - 14,941,327 1.52%1,132.69
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
112
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 29,059$ 1.18%343$
Palm Beach County School Board 4,273 1.12%48
Other debt:
Palm Beach County 625,025 1.18%7,375
Palm Beach County School Board 1.12%
Subtotal, overlapping debt 7,766
Village of North Palm Beach Direct Debt 14,367,994
Total direct and overlapping debt 14,375,760$
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, 2022
Unaudited
Government Unit
113
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)
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
2022 6,848,425 5,476,786 1,371,639 394,900 3.47
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.
114
Per Palm Beach
Median Capita County
Calendar Personal Personal Unemployment
Year Population (1)Income (1)Income (1)Rate (2)
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
2022 (estimate)13,191 ***74,666 ****52,970 **0.77
Sources:Business Development Board
US Census Bureau
**North Palm Beach Unemployment Rate for 2022 presented
***North Palm Beach Median Personal Income for 2022 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
115
762722
Percentage Percentage
of Total of Total
Employer Employees Employment Employees Employment
Palm Beach Country School District 22,426 2.94%21,499 3.21%
State Government 9,934 1.30%0.00%
Federal Government 6,878 0.90%0.00%
Palm Beach County Government 5,753 0.75%5,330 0.79%
Tenet Coastal Division PBC 5,734 0.75%6,100 0.91%
NextEra Energy (Florida Power & Light) 5,330 0.70%3,804 0.57%
Florida Alantic University 5,059 0.66%2,980 0.44%
Boca Raton Regional Hospital (2)3,135 0.41%2,250 0.34%
Veterans Health Administration 2,600 0.34%2,700 0.40%
Hospital Corporation of America (HCA) (1)2,419 0.32%2,714 0.40%
The Breakers Hotel 2,300 0.30%1,800 0.27%
Baptist Health South Florida Hospital (3)2,282 0.30%2,643 0.39%
Office Depot 2,000 0.26%2,000 0.30%
Florida Crystal Corp.2,000 0.26%0.00%
Jupiter Medical Center 1,880 0.25%1,600 0.24%
City of Boca Raton 1,810 0.24%0.00%
City of West Palm Beach 1,725 0.23%0.00%
83,265 10.91%55,420 8.26%
Source: Business Development Board of Palm Beach County, floridajobs.org
VILLAGE OF NORTH PALM BEACH
PRINCIPAL EMPLOYERS
2022 & 2013 Presented
2022 2013
* 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
(3) Formerly Bethesda Memorial Hospital
116
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Number of Employees:
General Government
Village Manager
Full-Time 2 2 2 2 4 4 4 4 4 3
Part-Time 0 0 0 0 1 1 1 1 0 0
Information Technology
Full-Time 3 3 3 3 3 3 3 3 3 4
Part-Time 0 0 0 0 0 0 0 1 1 0
Human Resources
Full-Time 2 2 2 2 2 2 2 2 2 2
Part-Time 0 0 1 2 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 7 7 5 6 6 6 6 6
Part-Time 1 1 0 0 1 0 0 0 0 0
Public Works
Full-time 37 37 35 34 36 37 37 37 36 32
Part-Time 0 0 0 0 0 0 2 2 2 2
Public Safety
Police
Full-time 43 43 36 36 36 38 38 38 38 40
Part-Time 13 13 13 13 13 15 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 1 1
Community Development and Planning
Full-time 8 10 11 12 13 14 15 15 14 14
Part-Time 2 1 0 0 1 1 1 0 2 2
Leisure Services
Library
Full-time 6 6 7 7 7 7 7 7 7 7
Part-Time 10 10 9 9 9 7 7 9 9 9
Recreation
Full-time 6 6 6 6 6 6 6 5 5 5
Part-Time 43 43 43 43 43 42 42 16 17 16
Other Government - Country Club **
Full-time 6 8 8 8 5 5 6 7 9 10
Part-Time 54 65 65 65 27 27 27 28 26 62
268 282 275 276 241 244 248 225 226 259
* Variance exists due to the employment of seasonal and part-time employees.
** Includes Golf/Pool/Tennis
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
117
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
FUNCTION/PROGRAM
PUBLIC WORKS
Sanitation (Tons of Refuse Collected)10,720 10,720 11,167 12,556 12,980 12,624 12,330 12,059 12,398 10,683
No. of collection units for solid waste (residential) 7,471 7,616 7,618 7,614 7,614 7,632 7,632 7,627 7,627 7,715
Number of vehicles maintained 111 98 98 92 85 89 88 89 90 97
Number of repair overlays completed (miles)- - - - - - - - - 6.86
POLICE
Number of arrests by police officers 216 238 293 247 233 192 134 150 150 161
Number of traffic citations issued 1,254 2,799 3,407 2,494 1,974 2,014 1,184 853 2,038 2,617
FIRE RESCUE
EMS average response times (minutes)5.11 5.10 5.05 5.26 5.21 5.37 4.50 5.42 5.44 5.40
Number of EMS calls 1,296 1,110 1,499 1,601 1,746 1,550 1,577 1,452 1,620 1,724
COMMUNITY DEVELOPMENT & PLANNING
Bldg Dept - Number of Permits,Subpermits and certificates 2,480 2,103 3,920 4,242 4,665 2,173 2,737 4,832 5,103 2,989
Number of code enforcement violations/cases 790 887 769 680 **516/357**726/317 885 941 327 **217/20
Number of code violations brought to board/magistrate
(Calendar Yr End)62 28 56 42 98 246 263 183***173 97
RECREATION
Number of community events presented 37 53 57 48 40 38 24 8 19 23
Number of registrants in athletic programs 2,074 1,439 1,389 1,174 1,109 1,174 1,077 120***275 435
LIBRARY
Library - Number of Volumes 44,966 46,546 47,339 *57,935 41,161 43,992 45,446 39,886 33,315 30,357
OTHER GOVERNMENT
Country Club
Number of Golf Members 262 250 255 265 271 178 198 278 263 208
Number of Tennis/Pool Members 190 194 193 183 183 159 182 241 786 569
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
118
2013 2014 2015 2016*2017 2018 2019 2020 2021 2022
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 5.40 5.40
Miles of Streets 36.00 36.00 36.00 32.30**32.30 32.30 32.30 32.30 32.30 32.30
Number of Street Lights (within corp surroundings)513 513 513 513 628****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 23 24 21 23 18 17 18
Number of Fire Captains 0 0 0 0 0 0 0 3 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 30 28 30 24 31
Number of Police Captains 2 2 2.5 2.5 2.5 2.5 2.5 2.5 1 2
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)44,966 46,546 47,339 48,913 33,502 36,009 37,429 33,672 28,575 26,031
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
119
OTHER REPORTS
120
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, 2022, 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 7, 2023.
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.
121
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 or significant deficiencies may exist that were not 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 7, 2023
122
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, 2022, and have issued our report thereon dated March 7, 2023.
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 7, 2023, 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.
123
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 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, 2022.
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.
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Single Audits
The Village expended less than $750,000 of federal awards, excluding Coronavirus State and
Local Fiscal Recovery Funds, and less than $750,000 of state financial assistance for the fiscal year
ended September 30, 2022, and was not required to have a federal single audit or a state single
audit. The Village expended more than $750,000 of Coronavirus State and Local Fiscal Recovery
Funds and elected for the alternative compliance attestation engagement in lieu of a federal 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 7, 2023
West Palm Beach, Florida
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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, 2022. 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.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the examination engagement.
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, 2022.
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 7, 2023