FY 2020 CAFRVillage of North Palm Beach, FL
Comprehensive Annual
Financial Report
Fiscal year ended September 30, 2020
The Village of
North Palm Beach, Florida
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2020
Prepared by:
Finance Department
Samia Janjua
Director of Finance
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ..................................................................................................................................... i
Principal Village Officials ....................................................................................................................... viii
Organizational Structure .............................................................................................................................. ix
GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................. x
FINANCIAL SECTION
Independent Auditor’s Report ...................................................................................................................... 1
Management's Discussion and Analysis ....................................................................................................... 4
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 14
Statement of Activities ......................................................................................................................... 15
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................. 17
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position ..................................................................................................... 18
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds ........................................................................................... 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities .................................... 20
Statement of Net Position - Proprietary Fund ...................................................................................... 21
Statement of Revenues, Expenses, and Changes in Net
Position - Proprietary Fund ............................................................................................................ 22
Statement of Cash Flows - Proprietary Fund ....................................................................................... 23
Statement of Fiduciary Net Position - Fiduciary Funds ....................................................................... 24
Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................................... 25
Notes to the Basic Financial Statements ..................................................................................................... 26
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Changes in Total OPEB liability ....................................................................................... 79
Schedule of Changes in Net Pension Liability – General Employees Retirement Fund ....................... 80
Schedule of Changes in Net Pension Liability – Fire and Police Retirement Fund .............................. 82
Schedules Contributions and Investment Returns – Retirement Funds ............................................... 84
Notes to the Schedule of Contributions ................................................................................................ 85
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual - General Fund ................................................................................................. 86
Notes to the Budgetary Required Supplementary Information ............................................................ 87
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
TABLE OF CONTENTS
(Continued)
OTHER SUPPLEMENTARY INFORMATION:
Schedule of Departmental Expenditures– Budget and Actual – General Fund .................................... 88
Combining Balance Sheet – Nonmajor Governmental Funds .............................................................. 91
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds ........................................................................................................ 92
Combining Statement of Net Position – Pension Trust Funds .............................................................. 93
Combining Statement of Changes in Fiduciary Net Position – Pension Trust Funds ........................... 94
Combining Statement of Agency Net Position .................................................................................... 95
Combining Schedule of Changes in Agency Net Position .................................................................... 96
Schedule of Revenues and Departmental Expenses –
Budget and Actual – Country Club Fund – Budgetary Basis ............................................................ 97
STATISTICAL SECTION
Net Position by Component ................................................................................................................. 98
Changes in Net Position ....................................................................................................................... 99
Fund Balances, Governmental Funds ................................................................................................. 101
Changes in Fund Balances, Governmental Funds .............................................................................. 102
Net Assessed Value and Estimated Actual Value of Taxable Property ............................................. 104
Property Tax Rates - Direct and Overlapping Governments............................................................... 105
Principal Property Taxpayers ............................................................................................................. 106
Property Tax Levies and Collections ................................................................................................. 107
Ratios of Outstanding Debt by Type ................................................................................................... 108
Direct and Overlapping Governmental Activities Debt ...................................................................... 109
Pledged-Revenue Coverage ................................................................................................................ 110
Demographic and Economic Statistics ................................................................................................ 111
Principal Employers ........................................................................................................................... 112
Full-Time Equivalent Village Government Employees by Function .................................................. 113
Operating Indicators by Function/Program ........................................................................................ 114
Capital Asset Statistics by Function/Program ..................................................................................... 115
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 ................................ 116
Management Letter in Accordance with the Rules of the Auditor General of the
State of Florida ............................................................................................................................... 118
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes .................................................................................................... 121
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 25, 2021
The Honorable Mayor, Members of the Village Council and Residents
Village of North Palm Beach, Florida
The Finance Department and Village Manager's Office are pleased to submit the Comprehensive Annual
Financial Report (Annual Report) for the Village of North Palm Beach, Florida for the fiscal year ended
September 30, 2020.
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, 2020. 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 Fund (i.e., the Country Club operation) is presented using the full
accrual basis of accounting required by Generally Accepted Accounting Principles (GAAP) for its annual
financial report. The Country Club annual budget is adopted using a modified accrual basis of accounting
(identical to the general government operations mentioned above) which is consistent with how general
ledger financial records are maintained throughout the year by the Village administration.
In developing and evaluating the Village's financial and accounting system, consideration is given to the
adequacy of internal accounting controls which are designed to provide reasonable, but not absolute,
assurance regarding: (a) the safeguarding of assets against loss from unauthorized use or disposition
and (b) the reliability of financial records for preparing financial statements and maintaining accountability
for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not
exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates
and judgments by management.
All internal control evaluations occur within the above framework. We believe that the Village's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording
of financial transactions.
The Village of North Palm Beach maintains budgetary controls through the annual budget public hearing
and approval process for GAAP-based budgets. The formal budget approval for each fiscal year is
accomplished in a manner compliant with Florida State Statute 200.065, commonly referred to as Truth-
in-Millage (TRIM).
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The level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is established at the fund level. The Village maintains an encumbrance accounting
system as one technique of accomplishing budgetary control. All expenditures, other than personal
services, are controlled by a procurement system which encumbers purchase orders against the budget
prior to issuance to vendors. All appropriations lapse at year end; however, encumbrances specifically
designated to be carried over to the subsequent year are re-appropriated in the following year.
ECONOMIC OUTLOOK
Property Values
The Village obtains a major portion of its annual General Fund financial resources (63%) 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.
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 will encourage investment in the community that will create an enhanced sense of
place, active uses and an increase in Village revenues. Significant initiatives include 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 economic downturn and softening of the money market have had a significant impact on Village
investment revenues over the past few years. In the short-term, the Village made a conscious decision
to modify its investment strategies towards the Treasury market to better protect and ensure the
availability of the Village’s investment balances. This move proved successful in safeguarding Village
investments during this market free fall but impacted the interest/dividend revenues to the Village. The
Village, with the assistance of the Village’s Audit Committee, adopted a “revised” Investment Policy
designed to provide safety and liquidity while maximizing investment return(s). The newly adopted policy
provided numerous investment strategies, parameters, and safeguards. The policy additionally provided
for 1/12 of the annual operating budget to be deposited in a liquid interest-bearing account so as not to
impede operations should other funds be temporarily unavailable. The Audit Committee and staff, along
with the Village’s Investment Advisor, continue to explore other investment opportunities that will improve
yields in future years while still ensuring the safety of our investments.
Personnel Costs
The Village will continue to face increased financial challenges in the areas of personnel costs for both
salaries and benefits. In past years, several retirement plan amendments were implemented by the
Village and then followed by significant salary adjustments that magnified the impact and cost of the
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retirement changes. The impact of these changes as well as the continuous improvement in the financial
markets have had a very positive financial impact on both plans. Due to legislative changes and
catastrophic claims losses, the Village has encountered significant increases in annual health insurance
costs during the past few years. In 2018, the Village introduced a high deductible insurance plan along
with funding health saving accounts to manage growing expenses. The Village is currently exploring the
use of contractual health clinic services for its employees and will continue its focus on Employee
Wellness as a means to help control health care costs and improve our opportunity for additional savings
from our providers.
The impact of personnel salaries and benefits in the coming years will have a broad and continuing effect
on future Village financing and service priorities in the areas of staffing, public services, and public
projects. Approximately 64% of the annual budget is allotted for wages and fringe benefits.
INITIATIVES AND FUTURE PROJECTS
The FY 2020 budget reflected a commitment to maintained predictable funding for community
infrastructure in areas such as roadways, neighborhood sidewalks, lighting, public buildings, and park
facilities. Following a period of deferred maintenance activities during the recession, the use of revenue
from a County-wide sales surtax is facilitating the Village’s ability to develop a financially feasible capital
program.
The Community Development Department provides Planning and Zoning, Code Compliance and
Building services. The Department continues to strive to improve its level of services for plan reviews,
building inspections, code enforcement and zoning compliance. The Department will move ahead with
the conversion of paper records to electronic records storage, resulting in a significant savings of staff’s
time and effort in records retrieval.
The Parks and Recreation Department continues to offer programs for all age groups at each of its six
(6) facilities. Although impacted by the global pandemic, Anchorage Park has been able to host diverse
events including: movies in the park, food truck nights, and organized volleyball leagues. In addition, the
Department provided youth sports training and leagues in baseball, soccer, and flag football. The
Department began reviewing all of its programming and facilities as part of a Parks and Recreation Needs
Assessment, which is scheduled to be completed in FY2022.
The Public Works Department is tasked with the oversight and management of Village sanitation services
and maintenance of the Village’s infrastructure, parks, buildings, equipment, and the roadways. The
Department’s focus was on enhancing infrastructure maintenance standards and meeting the
community’s expectation regarding the appearance of public spaces
The Police Department focused on improvements in community policing/neighborhood outreach by
conducting community meetings and high visibility directed patrols that incorporate a high rate of officer
interaction with Village residents. The Department continued to emphasize the importance of reducing
crime in the Village through the use of advanced technology to analyze crime trends and deter future
crime using predictive policing concepts. Additional crime suppression and community engagement
efforts were conducted through the use of Transitional Neighborhood Teams and the interdepartmental
Neighborhood Enhancement Team (NET). Two full-time officers were funded in the FY 2018 budget in
order to create this program, which allows officers and other members of the NET team to concentrate
their efforts in neighborhoods requiring assistance in achieving their quality of life goals. The Department
continued to benchmark itself against the best policing practices by participating in the CALEA
(Commission on Accreditation for Law Enforcement Agencies) accreditation process. The Department
was re-accredited in July, 2017.
v
Fire Rescue has experienced an annual increase in calls for service since 2011 with the majority (77%)
being medical in nature. The Department continued to support the annual Hands-Only CPR initiative as
a charter provider. The fire inspector provided existing business inspections, fire code enforcement, and
plans review and site inspections of new projects. This proactive approach to fire prevention has resulted
in decreased incidents of commercial responses. Through the CIP, the Department anticipates replacing
older apparatus on a rolling schedule that will allow it to maintain high quality service to the Village’s
residents and guests.
The Human Resources Department is committed to fostering a work environment that attracts quality
applicants and encourages employees to perform at the highest level in support of the Village's goals
and objectives. In accordance with the Council's direction to "continuously improve the way the Village
operates", the Department establishes policies and procedures that are consistent across all
administrative functions while remaining current, relevant and compliant with local, state and federal labor
and personnel laws. Having implemented a new performance evaluation system for personnel in the
Fire Rescue Department in 2016, Human Resources expanded the pay for performance initiative to
encompass other employee groups in 2017, specifically to include Police Department personnel. The
Department will enhance the initiative’s effectiveness by focusing evaluation criteria on those that best
measure employees’ adherence to the organization’s values, their ability to perform their key functions
and, in some cases, their display of extraordinary effort or innovation to achieve the Village Council’s
goals for the organization or the community. In addition, Human Resources will focus on offering diverse
training programs and related opportunities to staff members in the areas of Business Etiquette and
Professionalism, Cultural Diversity, Conflict Resolution, Office Safety, Progressive Discipline, Drug-
Free/Alcohol-Free Workplace, and Leadership skills. Lastly, the Department, in its role of managing
Workers' Compensation (W/C) cases in conjunction with the W/C insurance carrier, is working with the
Gehring Group's risk management team, as well as the newly established Employee Safety Committee,
to seek solutions to reduce instances of injury, lower W/C costs and provide a more positive claims
experience for all stakeholders.
The Library has been streamlining processes and procedures, upgrading outdated equipment, and
reorganizing various departments. Additionally, renovations within the Library to create a better
experience for children and teens were recently completed.
The Information Technology Department has been involved in numerous projects over the last year:
preparing the Village for Phase Two of the LPR (License Plate Recognition) systems, Police laptop
encryption, Country Club renovation and installations for temporary facilities, Library computer lab
automation, and upgrading the Village’s phone system. The IT Department also implemented
ArchiveSocial to retrieve and archive all of the Village’s social media outlets.
The North Palm Beach Country Club recently completed a $19-million-dollar reconstruction that includes
a new clubhouse and ancillary facilities for members, residents, guests and the general public. The new
facility introduced a successful independent restaurant, Farmer’s Table, as its new caterer and food &
beverage provider, a splash park for juniors, updated administrative offices, a new pool deck with updated
shade structures, multipurpose rooms, locker rooms and an updated golf shop sizable to the demand of
a golf course that supports approximately 42,000+ annual rounds. The goal of the Golf Operations
Department is to provide first class service at the Jack Nicklaus Signature municipal facility and expand
upon its broad range of programming to juniors, women, seniors, beginners, families as well as avid
golfers. The Clubhouse opened in December, 2019.
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The Golf Operations Department also worked with Nicklaus Design Group to implement a project to
renovate the golf course and upgrade the driving range turf and lighting at a cost of $1.7 million. The
driving range opened in February, 2019. The course opened to members and guests in mid-March and
opened to the public in April, 2019.
For Fiscal Year 2019-2020, the Village Council reiterated its primary objective to sustain the Village as
the “Best Place to Live Under the Sun.” As part of that objective, the Council developed the following
goals to guide the budget process:
1. Financial Sustainability
2. Beautification and Quality of Life
3. All Neighborhoods as Desirable Places to Live
4. Waterways and Recreation
5. Strong Local Economy
6. Improve Mobility
7. Organizational Excellence
OTHER INFORMATION
Independent Audit
Article 11, Section 2.18 of the Village Charter requires an annual audit of the books of account, financial
records and transactions of all administrative departments of the Village by independent, certified public
accountants selected by the Village Council. To substantiate that this requirement has been met, the
independent auditor's report is included in this report.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement of Excellence in Financial Reporting to the Village of North Palm Beach
for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2019, the 32nd
consecutive year the Village has received this award. The Certificate of Achievement is a prestigious
national award, recognizing conformance with the highest standards for preparation of state and local
government financial reports. In order to be awarded a Certificate of Achievement, the governmental unit
must publish an easily readable and efficiently organized 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, 2019, the 11th consecutive year the Village has received
this award (previously this award had not been received since 1995). The Distinguished Budget
Presentation Award is a prestigious national award that recognizes conformance with the highest
principles of governmental budgeting. In order to qualify for the Distinguished Budget Presentation
Award, a governmental unit must publish a budget document that meets program criteria as a policy
document, as an operations guide, as a financial plan, and as a communication device.
vii
Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated services
from the entire staff of the Finance Department.
We would like to thank the Mayor and Council for their unfailing support for maintaining the highest
standards of professionalism in the management of the Village of North Palm Beach’s finances.
Respectfully submitted,
Andrew D. Lukasik
Village Manager
viii
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
PRINCIPAL VILLAGE OFFICIALS
SEPTEMBER 30, 2020
Title Name
Mayor Susan Bickel
Vice Mayor Mark Mullinix
President Pro Tem David B. Norris
Council Member Darryl C. Aubrey
Council Member Deborah Searcy
Village Manager Andrew D. Lukasik
Director of Finance Samia Janjua
Village Clerk Jessica Green
Village Attorney
Village Boards
Adjustment
The Residents
Village Council
Village Clerk
Operating Departments
Community Development
Finance
Human Resources
Information Technology
Library
Police
Fire Rescue
Public Works
Parks & Recreation
Country Club
Village Manager
Village of North Palm Beach OrganizationalStructure
ix
x
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Village of North Palm Beach
Florida
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2019
Executive Director/CEO
FINANCIAL SECTION
1
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and Members of the Village Council
The Village of North Palm Beach, Florida
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Village of North Palm Beach, Florida as of and for the year ended September 30, 2020, and the
related notes to the financial statements, which collectively comprise the Village of North Palm
Beach, Florida’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
2
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Village of North Palm Beach,
Florida as of September 30, 2020, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis on pages 4 through 13, Pension and Other
Postemployment Benefit trend information on pages 79 through 85, and budgetary comparison
information on pages 86 through 87 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Village of North Palm Beach, Florida’s basic financial statements. The
introductory section, other supplementary information, and statistical section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
3
The other supplementary information is the responsibility of management and was derived from
and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the other supplemental information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
March 5, 2021, on our consideration of the Village of North Palm Beach, Florida’s internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts, grant agreements and other matters. The purpose of that report is
solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing and not to provide an opinion on the effectiveness of
the Village of North Palm Beach, Florida’s internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Village of North Palm Beach, Florida’s internal control
over financial reporting and compliance.
West Palm Beach, Florida
March 5, 2021
4
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Village of North Palm Beach, Florida’s (Village) Administration offers readers of the Village's
financial statements this narrative overview and analysis of the financial activities of the Village for the
fiscal year ended September 30, 2020. 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
2020 2019 (Decrease)Page #
Total net position $29.88 $27.10 $2.78 14
Unrestricted net position available for future use $3.53 $4.61 ($1.08)14
Governmental net position $30.09 $26.84 $3.25 14
Total revenues from all sources $33.02 $30.31 $2.71 15
Governmental revenues $29.15 $28.90 $0.25 15
Total cost of all Village programs $30.24 $27.51 $2.73 15
Governmental revenues over (under) expenses $3.26 $4.27 ($1.01)16
General fund revenues over (under) expenditures $2.23 $2.43 ($0.20)19
General fund unassigned fund balance $11.62 $8.18 $3.44 17
As a percent of general fund expenditures 45.95%33.21%12.74%
Country Club revenues over (under) expenses ($0.47)($1.47)$1.00 22
Change in total long-term debt for the Village ($0.26)($0.86)$0.60
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the financial
statements are: (1) Government-wide financial statements that include the Statement of Net Position and
the Statement of Activities. These statements provide information about the activities of the Village as a
whole. (2) Fund financial statements tell how these services were financed in the short term, as well as
what remains for future spending. Fund financial statements also report the Village's operations in more
detail than the government-wide statements by providing information about the Village's most significant
funds. (3) Notes to the basic financial statements expand upon information reported in the government-
wide and governmental fund statements.
REPORTING ON THE VILLAGE AS A WHOLE
Statement of Net Position and the Statement of Activities (Government-wide)
A frequently asked question regarding the Village's financial health is whether the year's activities
contributed positively to the overall financial well being. The Statement of Net Position and the Statement
of Activities report information about the Village as a whole and about its activities in a way that helps
answer this question. These statements include all assets, deferred outflows of resources, liabilities and
deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting
used by most private-sector companies. All of the current year's revenues and expenses are taken into
account, regardless of when cash is received or paid.
5
These two statements report the Village's net position and changes therein. Net position, the difference
between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is
one way to measure the Village's financial health, or financial position. Over time, increases or decreases
in net position are an indicator of whether the financial health is improving or deteriorating.
The Statement of Net Position and the Statement of Activities present information about the following:
• Governmental activities - All of the Village's basic services are considered to be governmental
activities, including general government, community development, public safety, public services,
library, and recreation. Property taxes, sales taxes, utility taxes, and franchise fees finance most of
these activities.
• Proprietary activities/Business-type activities - The Village charges a fee to customers to cover all
or most of the cost of the services provided. The Village's Country Club is reported in this
category.
REPORTING THE VILLAGE'S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the
Village as a whole. Some funds are required to be established by State law. However, management
establishes other funds, which aid in the management of money for particular purposes or meet legal
responsibilities associated with the usage of certain taxes, grants, and other money. The Village's three
types of funds - governmental, proprietary, and fiduciary - use different accounting approaches as
explained below.
• Governmental Funds
Most of the Village's basic services are reported in governmental funds. Governmental funds
focus on how resources flow in and out, with balances available for spending remaining at year-
end. These funds are reported using an accounting method called the modified accrual accounting
method, which measures cash and all other financial assets that can be converted to cash readily.
The governmental fund statements provide a detailed short-term view of the Village's general
government operations and the basic services it provides. Governmental fund information shows
whether there are more or fewer financial resources that can be spent in the near future to finance
the Village's programs.
The Village maintains seven individual governmental funds: the General Fund, one Capital
Projects Fund, and five 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 Capital Projects Fund all of which are considered major funds (generally accepted
accounting principles define a fund as major based on that fund’s size relative to the other funds
of the government; a fund may also be reported as major if the government's officials believe that
fund is particularly important to financial statement users). The remaining funds are considered
non-major funds, and data from these governmental funds is combined into a single column for
an aggregated presentation. The basic governmental fund financial statements can be found on
pages 17-20 of this report.
6
• Proprietary Funds
The Village's only proprietary fund is the Country Club Fund, which charges customers for the
services it provides. These services are generally reported in proprietary funds. Proprietary funds
are reported in the same way that all activities are reported in the Statement of Net Position and
the Statement of Activities. The basic proprietary fund financial statements can be found on pages
21-23 of this report.
• Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. The funds in this category are the Village’s Pension Trust Funds and Agency Funds.
Fiduciary funds are not reflected in the government-wide financial statement because the
resources of those funds are not available to support the Village's own programs. The accounting
used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund
financial statements can be found on pages 24-25 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net positon may serve over time as a useful indicator of a government's financial
position. In the case of the Village, the net position was $29.88 million at the close of the most recent
fiscal year.
A significant portion of the Village's net position (84.89%) reflects its investment in capital assets (e.g.,
land, buildings, machinery, and equipment), less any related debt still outstanding, which was used to
acquire those assets. The Village uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending.
7
Table 2
Village of North Palm Beach
Net Position
(In Thousands)
Governmental Business-type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Assets:
Current and other assets 17,755$ 21,156$ (2,177)$ (2,661)$ 15,578$ 18,495$
Capital assets 36,278 32,329 4,232 5,040 40,510 37,369
Total assets 54,033 53,485 2,055 2,379 56,088 55,864
Deferred outflows of resources:2,968 2,572 7 2 2,975 2,574
Liabilities:
Current liabilities 1,634 5,415 873 415 2,507 5,830
Long-term liabilities 21,660 20,306 1,353 1,672 23,013 21,978
Total liabilities 23,294 25,721 2,226 2,087 25,520 27,808
Deferred inflows of resources:3,608 3,492 50 34 3,658 3,526
Net positon:
Net investement in capital assets 22,423 18,548 2,947 3,422 25,370 21,970
Restricted 986 526 986 526
Unrestricted 6,690 7,770 (3,161) (3,162) 3,529 4,608
Total net position 30,099$ 26,844$ (214)$ 260$ 29,885$ 27,104$
Governmental Activities
The cost of all governmental activities this year was $25.99 million. As shown on Table 3, Changes in
Net Position, those who directly benefited from the programs paid for $3.73 million of this cost and
$25.52 million was financed through general revenues. Governmental activities increased the Village's
net position by $3.26 million, thereby accounting for 100% of the total increase in the net position of the
Village.
Additional detail is shown in Table 3, which follows on the subsequent page.
8
Table 3
Village of North Palm Beach
Changes in Net Position
(In Thousands)
Activities Total
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services 3,731$ 4,073$ 3,768$ 1,407$ 7,499$ 5,480$
Operating grants and contributions 718 395 718 395
Capital grants and contributions 850 808 850 808
General revenues:
Property taxes 16,991 16,185 16,991 16,185
Local option gas taxes 273 307 273 307
Local option infrastructure surtax 870 923 870 923
Utility service taxes 2,558 2,522 2,558 2,522
Sales and use taxes 1,346 1,449 1,346 1,449
Franchise taxes 1,305 1,353 1,305 1,353
Investment earnings 502 812 502 812
Miscellaneous 105 80 105 80
Gain on asset disposals -
Total revenues 29,249 28,907 3,768 1,407 33,017 30,314
Expenses:
Program expenses:
General Government 3,541 3,313 3,541 3,313
Public Safety 12,103 10,505 12,103 10,505
Public Works 5,633 5,604 5,633 5,604
Community Development 1,399 1,686 1,399 1,686
Leisure Services 2,796 3,038 2,796 3,038
Interest on long-term debt 521 490 521 490
Country Club 4,243 2,879 4,243 2,879
Total expenses 25,993 24,636 4,243 2,879 30,236 27,515
Increase (decrease) in net position 3,256 4,271 (475) (1,472) 2,781 2,799
Net position - beginning of year 26,844 22,573 260 1,732 27,104 24,305
Net position - end of year 30,100$ 26,844$ (215)$ 260$ 29,885$ 27,104$
Governmental Business-type
Activities
9
The Village's programs include General Government, Public Safety, Public Works, Community
Development & Planning, and Leisure Services. Each program's net cost (total cost, less revenues
generated by the activities) is presented below. The net cost shows the extent to which the Village's
general taxes support each of the Village's programs.
Table 4
Village of North Palm Beach
Cost of services
(In Thousands)
Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government 3,541$ (3,044)$ 3,313$ (3,129)$
Public safety 12,103 (11,248) 10,505 (9,133)
Public works 5,633 (5,112) 5,604 (5,053)
Community development 1,399 325 1,686 114
Leisure services 2,796 (1,094) 3,038 (1,668)
Interest on long-term debt 521 (521) 490 (490)
25,993$ (20,694)$ 24,636$ (19,359)$
2020 2019
At the end of the current year, as compared to the prior year, the total cost of services increased by $1.36
million. This increase is primarily due to increased police and fire pension costs.
Business-Type Activities
At the end of the current year, as compared to the prior year, Charges for Services (revenues) for the
Business-type activities increased by $2.36 million and expenses increased by $1.36 million. Net positon
of the Proprietary Fund (Country Club) at September 30, 2020, were ($0.21) million. Net position
decreased by $0.47 million.
The negative impact in the Village’s Business-type activities was largely due to the mandated closure of
the Country Club Restaurant and cancellation of several events due to the COVID-19 pandemic.
10
FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS
As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds
The focus of the Village's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the Village's financing
requirements. In particular, unrestricted (unassigned/assigned) fund balance may serve as a useful
measure of a government's net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the combined fund balance for all Governmental Funds was $16.53
million, a $1.15 million increase from the 2019 fund balance of $15.38 million. Approximately 80% of
the combined ending fund balance ($13.21 million) constitutes unrestricted (unassigned/assigned) fund
balance, which is available for spending at the government's discretion. The remainder of fund balance
($3.31 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 $11.62 million while the General Fund total fund
balance was $14.20 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 46% of total general fund expenditures, while total fund balance represents 56% of that same amount.
The general fund unassigned fund balance ($11.62 million) represents an increase of $3.44 million from
the 2019 unassigned general fund balance of $8.18 million. Key elements of this increase are listed
below:
• Revenues for Utility Service Taxes were budgeted on prior year trends ($2.42 million). For the
current year, the Village received $2.56 million;
• Due to discounts from prompt payments, State law requires that only 95% of the gross ad-
valorem taxes be budgeted as revenue ($16.74 million). For the current year, the Village received
$16.99 million);
• Revenues for Licenses and Permits were budgeted on prior year trends ($1.11) million. For the
current year, the Village received $1.32 million. This is primarily a result of an increase in
Building Permits; and
• The Village received a total of $0.65 million from FEMA as a reimbursement for hurricane-
related expenses.
The increase in the above-mentioned revenues, savings in personnel costs (as referenced on next page)
and containment of operating costs were key factors that contributed to the positive impact in the
Village’s General Fund.
11
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were $1,904,604 and can be briefly
summarized as follows:
• Vehicle Leases ($1,339,026)
• Prior Year Open Purchase Order Carryover ($565,578)
General Fund Budget Analysis
As shown on pages 88-90 of this report, in the Schedule of Departmental Expenditures – Budget and
Actual, there was an overall favorable budget to actual cost variance of $2.09 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
($0.16 million);
• savings in personnel costs ($1.16 million)
o some of the by-products of the COVID-19 pandemic were mandatory facility closures
within the Village as well as cancellations of special events, sports programs and other
recreational activities. In addition, there were fewer vacant positions being filled while
implementing furloughs of part-time employees on a temporary basis. To that end, a
savings in overall personnel costs was realized; and
• savings in operating costs ($0.78 million) as a result of departments holding the line on operating
costs.
Capital Projects Fund
The Village’s Capital Projects Fund is project specific and involves multi-year projects. Appropriations in
this fund remain open and carry over to succeeding years until planned expenditures are made, or until
they are amended or cancelled. At the end of the current fiscal year, the total fund balance was $1.15
million, a $2.58 million decrease over the 2019 fund balance of $3.73 million. This is primarily due to
the Country Club Clubhouse project activity.
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 $0.92 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, 2020 and 2019 amounts to $40.51 million and $37.37 million, respectively (net of
accumulated depreciation).
12
Table 5
Village of North Palm Beach
Capital Assets
(In Thousands)
Governmental Business-type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Land 2,056$ 2,056$ 1,051$ 1,051$ 3,107$ 3,107$
Construction in progress 664 17,716 228 664 17,944
Buildings and improvements 45,848 26,045 7,751 8,072 53,599 34,117
Furniture, fixtures and equipment 9,826 7,520 100 49 9,926 7,569
Total assets 58,394 53,337 8,902 9,400 67,296 62,737
Less accumulated depreciation (22,115) (21,008) (4,670)(4,359)(26,785) (25,367)
Net position 36,279$ 32,329$ 4,232$ 5,041$ 40,511$ 37,370$
Additional information on the Village's capital assets can be found in Note 5 on pages 46 through 47 of
this report.
Debt
Currently, the Village uses debt financing on an as-needed basis each year. At the end of the current fiscal
year, the Village had total long-term debt of $15.14 million; $13.86 million in the governmental activities
and $1.28 million in business-type activities. None of the Village’s long-term debt comprises debt
backed by the full faith and credit of the government.
Table 6
Village of North Palm Beach
Outstanding Debt
(In Thousands)
Governmental Business-type
Activities Activities Total
2020 2019 2020 2019 2020 2019
Loans payable 12,680$ 13,515$ 1,285$ 1,619$ 13,965$ 15,134$
Capital leases 1,176 266 1,176 266
Total 13,856$ 13,781$ 1,285$ 1,619$ 15,141$ 15,400$
Additional information on the Village's debt can be found in Note 6 on pages 48 through 51 of this report.
13
NEXT YEAR'S BUDGET AND ECONOMIC FACTORS
The Village’s Unassigned Fund Balance is viewed by the Administration as a measurement of Village
financial stability. Unassigned general fund balance increased to $11.62 million during the current 2020
fiscal year. The increase is primarily due to the increase in several revenue categories and savings in
personnel costs.
The FY 2020/21 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 not increased; it
remained flat at 7.5000 mils.
The Village’s financial plan represents an aggressive approach to adequately maintain infrastructure and
address gaps in the organization in order to deliver services to the community. While the budget allocates
resources to improve the Village’s ability to address service and maintenance demands annually, there are
also significant capital investments to be made that will be unique to the upcoming fiscal year.
Improvement of the dry storage area in Anchorage Park and providing funding to Palm Beach County to
incorporate aesthetic features and pedestrian amenities into their design of the Prosperity Farms Road
Bridge Replacement Project (which will begin in 2022) are unique investments for the upcoming year.
These upcoming investments will result in increased expenditures; however, increasing property
valuations and continued state and national economic growth will blunt the impact of these projects to the
annual financial plan.
CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors
with a general overview of the Village's finances and to show the Village's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Village's Finance Department, at the Village of North Palm Beach, 501 U.S. Highway 1, North Palm
Beach, Florida 33408.
BASIC FINANCIAL STATEMENTS
Statement of Net Position
September 30, 2020
Governmental Business-type
Activities Activities Total
Assets
Cash and cash equivalents 4,653,495$ 1,505$ 4,655,000$
Investments 9,950,555 9,950,555
Accounts receivable 339,975 32,348 372,323
Accrued interest 28,859 28,859
Inventories 111,860 68,462 180,322
Prepaids 6,668 49 6,717
Due from other governments 384,291 384,291
Internal balances 2,279,341 (2,279,341)
Capital assets:
Nondepreciable 2,719,379 1,051,311 3,770,690
Depreciable (net of depreciation)33,559,296 3,180,598 36,739,894
Total assets 54,033,719 2,054,932 56,088,651
Deferred outflows of resources
Other postemployement benefits related items 56,633 1,872 58,505
Pension related items 2,911,353 5,580 2,916,933
Total deferred outflows of resources 2,967,986 7,452 2,975,438
Liabilities
Accounts payable 566,140 179,707 745,847
Retainage payable 458,042 458,042
Accrued liabilities 214,281 214,281
Unearned revenue 222,749 693,576 916,325
Accrued interest payable 173,484 173,484
Noncurrent liabilities:
Due within one year 2,259,719 377,231 2,636,950
Due in more than one year 19,400,240 975,791 20,376,031
Total liabilities 23,294,655 2,226,305 25,520,960
Deferred inflows of resources
Deferred revenue 225,648 225,648
Other postemployement benefits related items 2,070,847 50,576 2,121,423
Pension related items 1,311,253 1,311,253
Total deferred inflows of resources 3,607,748 50,576 3,658,324
Net position
Net investment in capital assets 22,423,120 2,947,241 25,370,361
Restricted for:
Recreation 195 195
Infrastructure 906,759 906,759
Library 23,976 23,976
Other purposes 55,559 55,559
Unrestricted 6,689,693 (3,161,738) 3,527,955
Total net position 30,099,302$ (214,497)$ 29,884,805$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
See notes to the financial statements.
14
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2020
Charges for
Functions/Programs Expenses Services
Government:
Governmental activities
General government 3,541,302$ 152,779$
Public safety 12,103,224 488,393
Public works 5,633,427 511,916
Community development and planning 1,398,876 1,723,949
Leisure services 2,795,698 853,581
Interest expense 520,755
Total governmental activities 25,993,282 3,730,618
Business-type activities - country club 4,242,674 3,768,449
Total business-type activities 4,242,674 3,768,449
Total government 30,235,956$ 7,499,067$
15
Program Revenues Net (Expense) Revenue and
Operating Capital Changes in Net Position
Grants and Grants and Governmental Business-type
Contributions Contributions Activities Activities Total
344,753$ $ (3,043,770)$ $ (3,043,770)$
344,726 21,605 (11,248,500) (11,248,500)
9,324 (5,112,187) (5,112,187)
325,073 325,073
19,179 828,582 (1,094,356) (1,094,356)
(520,755) (520,755)
717,982 850,187 (20,694,495) (20,694,495)
(474,225)(474,225)
(474,225)(474,225)
717,982$ 850,187$ (20,694,495) (474,225) (21,168,720)
General Revenues:
Taxes:
Property taxes 16,991,314 16,991,314
Local option gas taxes 273,428 273,428
Local option infrastruture surtax 869,852 869,852
Utility service taxes 2,558,092 2,558,092
Franchise taxes 1,304,936 1,304,936
Sales and use taxes 1,345,508 1,345,508
Investment income - unrestricted 502,335 502,335
Miscellaneous 104,618 104,618
Total general revenues 23,950,083 23,950,083
Change in net position 3,255,588 (474,225) 2,781,363
Net position, beginning of year 26,843,714 259,728 27,103,442
Net position, end of year 30,099,302$ (214,497)$ 29,884,805$
See notes to the financial statements.
16
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Balance Sheet
Governmental Funds
September 30, 2020
Infrastructure Capital Nonmajor Total
Surtax Projects Governmental Governmental
General Fund Fund Funds Funds
Assets
Cash and cash equivalents 2,398,565$ 836,411$ 1,156,241$ 262,278$ 4,653,495$
Investments 9,950,555 9,950,555
Accounts receivable 339,975 339,975
Accrued interest 28,859 28,859
Inventories 111,860 111,860
Prepaids 6,668 6,668
Due from other funds 20,085 72,091 92,176
Advances to other funds 2,207,250 2,207,250
Due from other governments 281,487 81,199 21,605 384,291
Total assets 15,345,304$ 917,610$ 1,228,332$ 283,883$ 17,775,129$
Liabilities, deferred inflows of resources, and fund balances
Liabilities
Accounts payable 477,968$ 10,851$ 77,321$ $ 566,140$
Accrued liabilities 214,281 214,281
Due to other funds 20,085 20,085
Unearned revenue 222,749 222,749
Total liabilities 914,998 10,851 77,321 20,085 1,023,255
Deferred inflows of resources
Deferred revenue 225,648 225,648
Unavailable revenue
Total deferred inflows of resources 225,648 225,648
Fund balances
Nonspendable:
Inventories and prepaids 118,528 118,528
Advances to other funds 2,207,250 2,207,250
Restricted for:
Country club project
Recreation 195 195
Infrastructure 906,759 906,759
Streets and roads 47,226 47,226
Police 5,560 5,560
Library 23,976 23,976
Other purposes 2,773 2,773
Assigned for:
Small business grants 16,435 16,435
Subsequent year's expenditures 160,430 160,430
Special revenue funds 263,798 263,798
Capital project funds 1,151,011 1,151,011
Unassigned 11,622,285 11,622,285
Total fund balances 14,204,658 906,759 1,151,011 263,798 16,526,226
Total liabilities, deferred inflows of
resources, and fund balances 15,345,304$ 917,610$ 1,228,332$ 283,883$ 17,775,129$
See notes to the financial statements.
17
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position
September 30, 2020
Fund balances - total governmental funds 16,526,226$
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 58,393,694$
Less: accumulated depreciation (22,115,019)
36,278,675
Accrued interest payable (173,484)
Retainage payable (458,042)
Revenue notes (12,680,000)
Capital leases (1,175,555)
Net pension liability (5,460,976)
Other postemployement benefits (778,074)
Accrued compensated absences (1,565,354)
(22,291,485)
Other postemployement benefits deferred outflows 56,633
Other postemployement benefits deferred inflows (2,070,847)
Pension related deferred outflows 2,911,353
Pension related deferred inflows (1,311,253)
(414,114)
Net position of governmental activities 30,099,302$
Long-term liabilities, including notes and bonds payable, are not due and
payable in the current period and therefore are not reported in the
governmental funds. Long term liabilities at year-end consist of:
Deferred outflows and inflows of resources related to pensions are
applicable to future periods and, therefore, are not reported in the
govenmental funds:
See notes to the financial statements.
18
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2020
Infrastructure Capital Nonmajor Total
Surtax Projects Governmental Governmental
General Fund Fund Funds Funds
Revenues
Taxes 21,127,770$ $ $ $ 21,127,770$
Licenses and permits 1,320,361 1,320,361
Intergovernmental 2,057,272 869,852 50,000 880,106 3,857,230
Charges for services 2,169,814 2,169,814
Fines and forfeitures 197,343 197,343
Investment 490,498 11,625 212 502,335
Miscellaneous 160,147 160,147
Total revenues 27,523,205 881,477 50,212 880,106 29,335,000
Expenditures
Current
General government 3,265,210 3,265,210
Public safety 10,079,474 339,482 10,418,956
Public works 5,300,077 5,300,077
Community development and planning 1,382,443 1,382,443
Leisure services 2,305,309 2,305,309
Capital outlay 1,525,216 409,948 3,100,237 58,734 5,094,135
Debt service
Principal 934,496 934,496
Interest 502,193 502,193
Total expenditures 25,294,418 409,948 3,100,237 398,216 29,202,819
Excess (deficiency) of revenues
over (under) expenditures 2,228,787 471,529 (3,050,025) 481,890 132,181
Other financing sources (uses)
Capital lease proceeds 1,009,529 1,009,529
Transfers in 644,475 200,000 844,475
Transfers out (644,475) (25,000) (175,000) (844,475)
Total other financing sources (uses)365,054 (25,000) 469,475 200,000 1,009,529
Net change in fund balances 2,593,841 446,529 (2,580,550) 681,890 1,141,710
Fund balances
Beginning of year 11,610,817 460,230 3,731,561 (418,092) 15,384,516
End of year 14,204,658$ 906,759$ 1,151,011$ 263,798$ 16,526,226$
See notes to the financial statements.
19
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of the Governmental Funds to the Statement of Activities
September 30, 2020
Net change in fund balances - total governmental funds 1,141,710$
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 4,841,699$
Donated assets and proceeds from trade in 684,552
Less: current year depreciation (1,538,290)
Net book value for retired assets (42,771) 3,945,190
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 (1,009,529)
Principal payments on debt 934,496 (75,033)
Governmental funds report revenues when earned and
available. However, in the Statement of Activities, revenues are
recognized when earned, regardless of availability:
Prior year unavailable grant revenue (733,738)
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 (18,562)
Change in long-term compensated absences (213,909)
Change in net pension liability and related deferred amounts (1,026,986)
Change in other postemployment benefits and deferred amounts 236,916
(1,022,541)
Change in net position 3,255,588$
See notes to the financial statements.
20
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Net Position
Proprietary Fund
September 30, 2020
Enterprise
Assets
Current assets
Cash and cash equivalents 1,505$
Accounts receivable 32,348
Inventories 68,462
Prepaids 49
Total current assets 102,364
Non-current assets
Capital assets, net 4,231,909
Total non-current assets 4,231,909
Total assets 4,334,273
Deferred outflows of resources
Other postemployement benefits related items 1,872
Pension related items 5,580
7,452
Liabilities
Current liabilities
Accounts payable 179,707
Unearned revenue 693,576
Due to other funds 72,091
Compensated absences - current portion 28,990
Loans payable - current portion 348,241
Total current liabilities 1,322,605
Non-current liabilities
Other postemployement benefits 25,721
Compensated absences 13,643
Advances from other funds 2,207,250
Loans payable 936,427
Total non-current liabilities 3,183,041
Total liabilities 4,505,646
Deferred inflows of resources
Deferred revenueOther postemployement benefits related items 50,576
Net position
Net investment in capital assets 2,947,241
Unrestricted (3,161,738)
Total net position (214,497)$
See notes to the financial statements.
21
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Fund
For the Year Ended September 30, 2020
Enterprise
Operating revenue
Greens fee/cart rentals/membership fees 3,014,821$
Golf shop revenues 325,038
Driving range revenues 314,177
Restaurant revenues 79,638
Miscellaneous 34,775
Total operating revenues 3,768,449
Operating expenses
Golf course maintenance expenses 1,485,867
Clubhouse grounds expenses 380,925
Golf shop expenses 1,330,828
Food and beverage expenses 31,318
Administrative and general 243,760
Insurance 28,139
Miscellanaous 4,044
Depreciation and amortization 639,527
Total operating expenses 4,144,408
Operating income (loss)(375,959)
Nonoperating revenues (expenses)
Gain on disposal of equipment 1,458
Interest expense (99,724)
Total nonoperating revenues (expenses)(98,266)
Change in net position (474,225)
Net position - beginning 259,728
Net position - ending (214,497)$
See notes to the financial statements.
22
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Cash Flows
Proprietary Fund
For the Year Ended For the Year Ended For the Year Ended September 30, 2020
Cash flows from operating activities:
Receipts from customers 4,396,802$
Payments to suppliers for goods or services (2,843,206)
Payments to employees for services (860,131)
Net cash used by operating activities 693,465
Cash flows from non-capital financing activities:
Payments to other funds (430,394)
Net cash provided by non-capital financing activities: (430,394)
Cash flows from capital and related financing activities:
Proceeds from the sale of capital assets 229,276
Principal paid on long term debt (333,965)
Interest paid on debt (99,724)
Acquisition of capital assets (58,479)
Net cash provided (used) by capital and related financing activities (262,892)
Net increase (decrease) in cash and cash equivalents 179
Cash and cash equivalents at beginning of year 1,326
Cash and cash equivalents at end of year 1,505$
Reconciliation of operating income
to net cash provided by operating activities:
Operating income (loss) (375,959)$
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation and amortization 639,527
Change in OPEB liability and related deferred amounts 6,284
Change in pension deferred amounts (5,580)
Change in assets and liabilities
Increase in accounts receivable (16,528)
Increase in inventory (37,593)
Increase in prepaids (49)
Decreaase in accounts payable (186,334)
Increase in compensated absences payable 24,816
Increase in deferred revenue 644,881
Total adjustments 1,069,424
Net cash provided by operating activities 693,465$
See notes to the financial statements.
23
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Fiduciary Net Position
Fiduciary Funds
September 30, 2020
Employee
Retirement Agency
Funds Funds
Assets
Cash and cash equivalents 700,851$ 389,310$
Investments:
Domestic common equity securities 14,391,953
International common equity securities 2,890,510
U.S. Government and agencies 3,060,403
Municipal bonds 446,727
Domestic corporate bonds 2,888,137
International corporate bonds 752,209
Fixed income exchange traded funds 3,898,565
Equity exchange traded funds 1,273,443
Fixed income mutual funds 2,470,142
Domestic equity mutual funds 8,404,532
International equity mutual funds 1,631,353
Real estate investment fund 2,718,753
Money market mutual funds 551,108
Accrued interest and dividends 43,616
Accounts receivable, broker-dealers 1,101,383
Prepaids 6,062
Total assets 47,229,747 389,310
Liabilities
Accounts payable 51,385
Accounts payable, broker-dealers 879,979
Due to others 389,310
Total liabilities 931,364 389,310
Net position restricted for pensions 46,298,383$ $
See notes to the financial statements.
24
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended September 30, 2020
Employee
Retirement
Funds
Additions
Contributions
Employer 1,096,500$
Plan members 404,290
DROP contributions 14,491
State on-behalf payments 339,482
Total contributions 1,854,763
Investment earnings
Dividends and interest 1,060,248
Net increase in fair value
of investments 1,879,638
Total investment earnings 2,939,886
Less: investment expenses 213,799
Total net investment earnings 2,726,087
Total additions 4,580,850
Deductions
Administrative expense 145,197
Refund of member contributions 21,359
Benefits 1,514,551
Total deductions 1,681,107
Change in net position 2,899,743
Net position - beginning 43,398,640
Net position - ending 46,298,383$
See notes to the financial statements.
25
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
26
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Village of North Palm Beach, Florida (“the Village”) was incorporated in 1956 pursuant to
Chapter 31481, Laws of Florida, Extraordinary Session 1956. The Village is located in the
northeast portion of Palm Beach County, Florida. Its municipal area comprises approximately
1,900 acres of land and 1,200 acres of lakes, canals and lagoons. The Village’s nonseasonal
population consists of approximately 13,000 residents, which increases during the winter months
to approximately 18,000 people. The Village operates under the Council-Manager form of
government and provides the following services to its residents: public safety, planning and
zoning, sanitation, library, parks, marinas, and a country club. The Village Council (the
“Council”) is responsible for legislative and fiscal control of the Village.
As required by generally accepted accounting principles, these financial statements include the
Village (the primary government) and its component units. Component units are legally separate
entities for which the Village is financially accountable. The Village is financially accountable if:
• it appoints a voting majority of the organization’s governing board and (1) it is able to
impose its will on the organization, or (2) there is a potential for the organization to
provide specific financial benefits to or impose specific financial burdens on the Village,
or
• the organization is fiscally dependent on the Village and (1) there is a potential for the
organization to provide specific financial benefits to the Village or (2) impose specific
financial burdens on the Village.
Organizations for which the Village is not financially accountable are also included when doing
so is necessary in order to prevent the Village’s financial statements from being misleading.
Based upon application of the above criteria, the Village of North Palm Beach has determined
that there are two legally separate entities to consider as potential component units. The Village
of North Palm Beach General Employees’ Retirement Fund and the Village of North Palm Beach
Fire and Police Retirement Fund are component units as they are fiscally dependent on and
impose a specific financial burden on the Village. They are reported in the Village’s financial
statements as pension trust funds in the fiduciary funds financial statements.
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) report information on all non-fiduciary activities of the Village. For the most part,
the effect of interfund activities has been removed from these statements. Governmental
activities, which are normally supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely, to a significant extent, on fees and charges
for support.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
27
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
B. Government-wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment, and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and the major individual enterprise fund are
reported as separate columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements and proprietary fund financial statements are reported
using the accrual basis of accounting and the economic resources measurement focus. Fiduciary
funds use the accrual basis of accounting and, except for agency funds, the economic resources
measurement focus. Agency funds do not have a measurement focus. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the Village considers revenues to be available if they are
collected within 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, 2020
28
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
The Village reports the following major governmental funds:
General Fund
The general fund is the primary operating fund and is used to account for all financial resources
applicable to the general operations of the Village except those required to be accounted for in
another fund.
Infrastructure Surtax Fund
The Infrastructure Surtax Fund is special revenue fund used to account for the surtax proceeds
which are restricted to, among other things, the financing, planning and construction of
infrastructure.
Capital Projects Fund
The capital projects fund is used to account for the cost of acquiring, constructing, and placing
into service those capital improvements, which are associated with activities in the General
Fund.
The Village reports the following major (and only) proprietary fund:
Country Club Enterprise Fund
The fund accounts for the activities related to the Country Club.
Additionally, the Village reports the following fund types:
Special Revenue Funds
The Village has four special revenue funds to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specific sources. The funds are the Public
Safety Fund, Northlake Boulevard Fund, Recreation, and On-Behalf Pension Contributions.
Employee Retirement Funds
The pension trust funds 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, 2020
29
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
Agency Funds
The Agency Funds account for assets that are held for other parties and cannot be used to finance
the Village’s own programs. The two agency funds are the Northlake Boulevard Task Force,
which is for the streetscape improvement of Northlake Boulevard, and the Manatee Protection
Fund, in which the assets are held in trust for the protection of manatees through the enforcement
of boat speed zones on the intracoastal and inland waterways.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the government’s
country club and various other functions of the Village. Elimination of these charges would
distort the direct costs and program revenues reported for the various functions concerned.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the Village’s Country Club Enterprise Fund are charges to
customers for sales and services. Operating expenses for the Enterprise Fund include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Village’s policy to
use restricted resources first, then unrestricted resources as needed.
D. Assets, Liabilities, and Net Position or Equity
Cash and Cash Equivalents
Cash and cash equivalents consist of petty cash, deposits in checking accounts, money market
mutual funds, investments with Florida Prime managed by the State of Florida, State Board of
Administration and Florida Education Trust Fund (FEITF) 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, 2020
30
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Accounts Receivable
Accounts receivable of the General Fund consists of billed and unbilled receivables.
Concentration of Credit Risk
The Village performs ongoing credit evaluations of its customers and does not require collateral.
The Village maintains an allowance for uncollectible accounts at a level which management
believes is sufficient to cover potential credit losses.
Investments
Investments are reported at fair value as required by generally accepted accounting principles.
The fair value of an investment is the amount that the Village could reasonably expect to receive
for it in a current sale between a willing buyer and a willing seller, other than in a forced or
liquidation sale. Purchases and sales of investments are recorded on a trade date basis.
Interfund Transactions
Activity between funds that is representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as either “due to” or “due from other funds”. Any
residual balance outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as internal balances.
Transfers and interfund balances totally within governmental activities and those that are totally
within business-type activities are eliminated and not presented in the government-wide financial
statements. Transfers and balances between governmental and business-type activities are
presented in the government-wide financial statements.
Inventories and Prepaid Items
Inventories are valued at cost determined on a first-in, first-out basis (FIFO). The costs of
governmental fund type inventory are recorded as expenditures when consumed rather than when
purchased. Inventories in the Enterprise Fund consist of goods for sale to the public. The initial
cost is recorded as an asset at the time the individual inventory items are purchased and are
charged against operations in the period when used.
Payments made to vendors for services that will benefit future periods are reported as prepaid
items using the consumption method by recording an asset for the prepaid amount and reflecting
an expenditure in the year in which the services are consumed.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
31
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Capital Assets and Depreciation
Capital assets, which include property, plant, infrastructure, and equipment, are reported in the
applicable governmental or business-type activities column in the government-wide financial
statements. The Village capitalizes all land purchases. The capitalization policy for other assets
are items with an estimated life in excess of one year and an initial individual cost of $250,000
for infrastructure, $25,000 for land improvements, $50,000 for buildings and building
improvements, and $5,000 for equipment and vehicles. The Village has elected to retroactively
apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure
assets acquired in fiscal years ending after June 30, 1980, or that were significantly reconstructed
or improved during that multi-year period. Infrastructure is reported in buildings and
improvements.
The accounting and reporting treatment applied to the capital assets associated with a fund is
determined by the fund’s measurement focus. General capital assets are assets of the Village as
a whole. When purchased, such assets are recorded as expenditures in the governmental funds
and capitalized as assets in the government-wide statement of net position. General capital
assets are carried at historical cost. Where cost cannot be determined from the available records,
estimated historical cost has been used to record the estimated value of the assets. Donated
capital assets, donated works of art and similar items, and capital assets received in a service
concession arrangement are recorded at acquisition value.
Capital assets of the Enterprise Fund are capitalized in the fund. The valuation basis for
Enterprise Fund capital assets is the same as those used for General capital assets.
Additions, improvements, and other capital outlay that significantly extend the useful life of an
asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation has been provided over the estimated useful lives using the straight-line method of
depreciation. The estimated lives for each major class of depreciable capital assets are as
follows:
Buildings, improvements and infrastructure 5-30 years
Golf course improvements 5-30 years
Machinery and Equipment 3-15 years
Vehicles 3-20 years
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
32
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Deferred Outflows and Inflows of Resources
The statement of net position includes a separate section for deferred outflows of resources. This
represents the usage of net position applicable to future periods and will not be recognized as
expenditures until the future period to which it applies. The Village reports deferred pension
items in connection with its two Retirement Systems. These deferred pension charges are either
(a) recognized in the subsequent period as a reduction of the net pension liability (which includes
pension contributions made after the measurement date) or (b) amortized in a systematic and
rational method as pension expense in future periods.
The statement of net position also includes a separate section, listed below total liabilities, for
deferred inflows of resources. This represents the acquisition of net position applicable to future
periods and will not be recognized as revenue until the future period to which it applies. The
Village currently has three types of deferred inflows. The first is local business tax revenues
received prior to the period for which the taxes are levied, these are recognized as income in the
period for which they are levied. The second is deferred pension items in connection with its
two Retirement Systems. The third is deferred OPEB items in connection to Other Post-
Employment Benefits. These items are amortized in a systemic and rational method and
recognized as a reduction of expense in future periods.
Unearned Revenue
The Village reports unearned revenue on its statements of net position and governmental funds
balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition.
In subsequent periods, when revenue recognition criteria are met the unearned revenue is
removed and revenue is recognized.
Compensated Absences
The Village’s employees are granted compensated absence pay for vacation and sick leave in
varying amounts based on length of service. Unused compensated absences are payable upon
separation from service. Vacation is accrued as a liability when the employee earns benefits.
This means that the employee has rendered services that give rise to a vacation liability and it is
probable that the Village will compensate the employee in some manner, e.g., in cash or paid
time-off, now or upon termination or retirement. The Village uses the vesting method in
accruing sick leave liability. Under the vesting method, the liability for sick leave is accrued for
employees who are eligible to receive termination payments upon separation.
Compensated absences are accrued when incurred in the government-wide and proprietary
financial statements. A liability for these amounts is reported in the governmental funds only if
the amounts have matured, for example, as a result of employee resignations or retirements. For
the governmental funds, compensated absences are liquidated by the General Fund.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
33
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of
net position. Bond premiums and discounts are deferred and amortized over the life of the bonds
using the effective interest method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
Net Position
Equity in the government-wide statement of net position and the proprietary fund is displayed in
three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Invested in
capital assets, net of related debt consists of capital assets reduced by accumulated depreciation
and by any outstanding debt incurred to acquire, construct, or improve those assets. Restricted
net position is reported when there are legal limitations imposed on their use by Village
legislation or external restrictions by other governments, creditors, or grantors. Unrestricted net
position consists of all net position that does not meet the definition of either of the other two
components.
Fund Equity
In the fund financial statements, governmental funds report fund balance classifications that
comprise a hierarchy based primarily on the extent to which the Village is bound to honor
constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is
reported under the following categories:
• Nonspendable fund balance represents amounts that are not in spendable form or are
legally or contractually required to be maintained intact.
• Restricted fund balance represents amounts that can be spent only for specific purposes
stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations
of other governments) or imposed by law through constitutional provisions or enabling
legislation.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
34
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Assets, Liabilities, and Net Position or Equity (Continued)
Fund Equity (Continued)
• Committed fund balance represents amounts that can be used only for the specific purposes
pursuant to constraints imposed by Village Commission by the adoption of an ordinance,
the Village’s highest level of decision making authority. Those committed amounts cannot
be used for any other purpose unless the Village removes or changes the specified use by
the adoption of an ordinance.
• Assigned fund balance includes spendable fund balance amounts that are intended to be
used for specific purposes, as expressed by the Village Commission or Village Manager, in
accordance with the Villages fund balance policy, that are neither considered restricted nor
committed. The Small Business Grants is a program the Village Council approved in the
prior fiscal year to provide matching grants of up to $7,500 for improvements to small
business properties.
• Unassigned fund balance is the residual fund balance classification for the general fund. It
is also used to report negative fund balances in other governmental funds.
When both restricted and unrestricted resources are available for use, it is the Village’s policy to
use restricted resources first, then unrestricted resources as they are needed. The Village will
first use committed fund balance, then assigned fund balance, and then unassigned fund balance
when expenditures are incurred for purposes for which any of the unrestricted fund balance
classifications could be used.
Use of Estimates
The financial statements and related disclosures are prepared in conformity with accounting
principles generally accepted in the United States. Management is required to make estimates
and assumptions that affect the reported amounts of assets, deferred inflows and outflows, and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements,
and revenue and expenses during the period reported. These estimates include the collectability
of accounts receivable, the use and recoverability of inventory, the useful lives and impairment
of tangible assets, and the realization of net pension assets, among others. Estimates and
assumptions are reviewed periodically and the effects of revisions are reflected in the financial
statements in the period they are determined to be necessary. Actual results could differ from
those estimates.
A. Budgetary Data
Formal budgetary integration is employed as a management control device during the year for
the General Fund and the Enterprise Fund. The only governmental fund with a legally adopted
annual budget is the General Fund. This budget is adopted on a basis consistent with generally
accepted accounting principles.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
35
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Data
Except for budgeting capital expenditures and not budgeting for depreciation, the annual
appropriated budgets for the Enterprise Funds are adopted on a basis consistent with generally
accepted accounting principles. For budgeting purposes, current year encumbrances are not
treated as expenditures.
The procedures for establishing budgetary data are as follows:
• In July of each year, the Village Manager submits a proposed operating budget to the
Council for the next fiscal year commencing the following October 1st. The proposed
budget includes expenditures and the means of financing them.
• During the months of July, August and September, the Council holds public meetings to
obtain taxpayer comments.
• Upon completion of the public hearings and prior to October 1st, a final operating budget
is legally enacted through the passage of an ordinance. Estimated beginning fund
balances are considered in the budgetary process.
• Any change to the total fund expenses must be approved by the Village Council.
• Appropriations along with encumbrances lapse on September 30th.
Budgeted amounts are as originally adopted, or as amended by appropriate action. During the
year, several supplementary appropriations were necessary.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g. purchase
orders or contracts) outstanding at year end are reported assigned fund balance and do not
constitute expenditures or liabilities because the commitments will be reappropriated and
honored during the subsequent year. The General Fund had $160,430, the Infrastructure Surtax
fund had $145,55 and the Capital Projects Fund had $480,082 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, 2020
36
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)
B. Property Taxes (Continued)
The Palm Beach County Property Appraiser incorporates the Village’s millage into the total tax
levy, which includes the County, County School Board, and special district tax requirements.
The millage rate assessed by the Village for the year ended September 30, 2020, was 7.5000
($7.5000 for each $1,000 of assessed valuation).
Taxes may be paid less a 4% discount in November or at declining discounts each month through
the month of February. All unpaid taxes become delinquent on April 1 following the year in
which they are assessed. Delinquent taxes on real property bear interest at 18% per year. On or
prior to June 1st following the tax year, certificates are offered for sale for all delinquent taxes on
real property.
After sale, tax certificates bear interest at 18% per year or at any lower rate bid by the buyer.
The certificate holder may make application for a tax deed on any unredeemed tax certificate
after a period of two years. The County holds unsold certificates. Delinquent taxes on personal
property bear interest at 18% per year until the tax is satisfied either by seizure and sale of the
property or by the five-year statute of limitations. At September 30, 2020, unpaid delinquent
taxes are not material and have not been recorded by the Village.
NOTE 3 – DEPOSITS AND INVESTMENTS
Deposits
As of September 30, 2020, the carrying amount of the Village’s deposits (including fiduciary
funds) was $3,079,965 and the bank balances totaled $3,290,855. 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, 2020
37
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
A reconciliation of deposit and investments as shown on the statement of net position and
statement of fiduciary net position for the Village is as follows:
By Category:
Deposits $ 3,079,965
Petty cash 3,856
Investments 57,989,730
Total deposits and investments $61,073,551
Presented in the statement of net position
Governmental activities
Cash and cash equivalents $ 4,653,495
Investments 9,950,555
Business-type activities
Cash and cash equivalents 1,505
Total statements of net position 14,605,555
Presented in the statement of fiduciary net
position
Pension trust funds
Cash and cash equivalents 700,851
Investments 45,377,835
Agency funds
Cash and cash equivalents 389,310
Total fiduciary funds 46,467,996
Total deposits and investments $61,073,551
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
38
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments
The Village categorizes its investments according to the fair value hierarchy established GASB
Statement No. 72, Fair Value Measurement and Application. The hierarchy is based on valuation
inputs used to measure the fair value of the asset as follows: Level 1 inputs are quoted prices in
active markets for identical assets; Level 2 inputs are significant other observable inputs to
include quoted prices for similar assets in active and non-active markets; Level 3 inputs are
significant unobservable inputs.
The money market mutual funds consist of investments with financial institutions in open end,
institutional, money market funds complying with Securities and Exchange Commission (SEC)
Rule 2a7. Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair
value to report net assets used to compute share prices if certain conditions are met. Those
conditions include restrictions on the types of investments held, restrictions on the term-to-
maturity of individual investments and the dollar-weighted average of the portfolio, requirements
for portfolio diversification, and requirements for divestiture considerations in the event of
security downgrades and defaults, and required actions if the fair value of the portfolio deviates
from amortized cost by a specified amount.
The Florida Public Assets for Liquidity Management (FL Palm) and Florida PRIME are external
investment pools which meet the requirements with GASB Statement No. 79, Certain External
Investment Pools and Pool Participants, which allows reporting the investments at amortized
cost. For both funds as of September 30, 2020, there were no redemption fees or maximum
transaction amounts, or any other requirements that serve to limit a participant’s daily access to
100 percent of their account value. However, the Trustees of the funds can suspend the right of
withdrawal or postpone the date of payment if the Trustees determine that there is an emergency
that makes the sale of a Portfolio’s securities or determination of its net asset value not
reasonably practical.
Money market mutual funds, FL Palm and Florida Prime are exempt from the GASB 72 fair
value hierarchy disclosures.
Equity securities, exchange traded funds, and mutual funds classified in Level 1 of the fair value
hierarchy are valued based on prices quoted in active markets for those securities. Debt
securities classified in level 2 of the fair value hierarchy are valued using a matrix pricing
technique. Matrix pricing values securities based on the securities relationship to benchmark
quoted prices.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
39
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The American Core Realty Fund, LLC is a diversified open-end commingled fund that invests
primarily in high quality core income-producing office, industrial, retail, and multi-family
properties. This fund is an alternative investment vehicle valued using the net asset value (NAV)
provided by the investment manager of this fund. The NAV is based on the value of the
underlying assets owned by the fund minus its liabilities and then divided by the number of
shares or percentage of ownership outstanding. The NAV’s unit price is quoted on a private
market that is not active. Investments valued at NAV are excluded from the fair value hierarchy
because the valuation is not based on actual market inputs but rather is quantified using the
fund’s reported NAV.
Redemptions from the fund may be made quarterly upon ten days’ notice. The units that are
subject to a redemption notice may be redeemed in full or in installments on a pro-rata basis as
funds become available for such redemptions and are subject to the availability of cash flow
arising from investment transactions, sales and other fund operations occurring in the normal
course of business. The fund is not required to liquidate or encumber assets or defer investments
in order to satisfy redemption requests.
The value of this alternative investment is not necessarily indicative of the amount that could be
realized in a current transaction. The fair value may differ significantly from the value that would
have been used had a ready market for the underlying fund existed, and the differences could be
material. Future confirming events will also affect the estimates of fair value and the effect of
such events on the estimated fair value could be material.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
40
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
As of September 30, 2020, the Village held the following investments:
Weighted Fair Value Measurement
Average
Maturity Fair Value Level 1 Level 2
Governmental Funds
U.S. Government and Agency 2.19 Years $ 4,470,173 $ $ 4,470,173
Asset Backed Securities 4.14 Years 2,198,803 2,198,803
Municipal Bonds 3.34 Years 86,496 86,496
Domestic Corporate Bonds 1.77 Years 2,083,220 2,083,220
International Corporate Bonds 1.80 Years 1,106,649 1,106,649
Fiduciary Funds
U.S. Government and Agency 22.67 Years 47,142 47,142
Asset Backed Securities 17.98 Years 3,013,261 3,013,261
Municipal Bonds 17.38 Years 446,727 446,727
Domestic Corporate Bonds 9.99 Years 2,888,137 2,888,137
International Corporate Bonds 0.26 Years 752,209 752,209
Domestic Common Equity
Securities N/A 14,391,953 14,391,953
International Common Equity
Securities N/A 2,890,510 2,890,510
Fixed Income ETF N/A 3,898,565 3,898,565
Equity ETF N/A 1,273,443 1,273,443
Fixed Income Mutual Funds N/A 2,470,142 2,470,142
Domestic Equity Mutual Funds N/A 8,404,532 8,404,532
International Equity Mutual
Funds N/A 1,631,353 1,631,353
52,053,315 $ 34,960,498 $ 17,092,817
Investments Reported at NAV
Fiduciary Funds
American Core Realty Fund N/A 2,718,753
Investments Reported at
Amortized Cost:
Governmental Funds
Money Market Mutual Funds N/A 5,214
Florida Prime 48 Days 1,099,153
FL Palm 46 Days 1,194,550
Fiduciary Funds
Money Market Mutual Funds N/A 918,745
Total Investments $ 57,989,730
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
41
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Credit risk – Credit risk is the risk that an issuer or other counter party to an investment will not
fulfill its obligations. The Village’s investment policies limit its investments to high quality
investments to control credit risk. The table below outlines the Village’s credit ratings for
investments with certain investments not specifically rated by both S&P and Moody’s.
S&P Moody’s Fair
Investments: Rating Rating Value
Governmental Funds
U.S. Government and Agency AA+ & NR Aaa $ 4,470,173
Asset Backed Securities AAA & NR Aaa & NR 2,198,803
Municipal Bonds AA, A+ & A- Aa3 & A1 86,496
Domestic Corporate Bonds AAA to BBB+ Aaa to Baa1 2,083,220
International Corporate Bonds AAA to A- Aaa to A2 1,106,649
Money Market Mutual Funds NR NR 5,214
Florida Prime AAAm NR 1,099,153
FL Palm AAAm NR 1,194,550
Fiduciary Funds
U.S. Government and Agency AA+ Aaa 47,142
Asset Backed Securities AAA, NR Aaa, NR 3,013,261
Municipal Bonds AAA to AA- Aaa to Aa2 446,727
Domestic Corporate Bonds AAA to BBB- Aaa to Baa3 2,888,137
International Corporate Bonds AAA to BBB- Aaa to Baa2 752,209
Common Equity Securities NR NR 17,282,463
Exchange Traded Funds NR NR 5,172,008
Mutual Funds NR NR 12,506,027
American Core Realty Fund NR NR 2,718,753
Money Market Mutual Funds NR NR 918,745
Total Investments $ 57,989,730
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, 2020
42
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
The Retirement Funds do not have a formal investment policy that limits investment maturities
as a means of managing exposure to fair value losses arising from increasing interest rates.
Custodial credit risk – Custodial credit risk is the risk that, in the event of the failure of the
counterparty, the Village will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The Village’s investments are held by a
third-party custodian, not in the name of the Village. Investments are held in book entry form at
the Federal Reserve by Depository Trust Company (DTC) via the custodian. The custodian
further segregates the Village’s investments in their trust accounting system. The investments in
mutual funds and investment partnerships are considered unclassified pursuant to the custodial
credit risk categories of GASB Statement No. 3, because they are not evidenced by securities
that exist in physical or book-entry form.
Concentrations of credit risk – Concentration of credit risk is defined as the risk of loss attributed
to the magnitude of an investment in a single user. The Village places no limit on the amount it
may invest in any one issuer, except those in the Fire and Police Retirement Fund. Not more
than five (5) percent of the Fund’s assets shall be invested in the common stock or capital stock
of any one issuing company.
Investing in Foreign Markets – Investing in foreign markets may involve special risks and
considerations not typically associated with investing in companies in the United States of
America. These risks include revaluation of currencies, high rates of inflation, repatriation
restrictions on income and capital, and future adverse political, social, and economic
developments. Moreover, securities of foreign governments may be less liquid, subject to
delayed settlements, taxation on realized or unrealized gains, and their prices are more volatile
than those of comparable securities in U.S. companies.
Investing in Real Estate. – The Village is subject to the risks inherent in the ownership and
operation of real estate. These risks include, among others, those normally associated with
changes in the general economic climate, trends in the industry including creditworthiness of
tenants, competition for tenants, changes in tax laws, interest rate levels, the availability of
financing and potential liability under environmental and other laws.
Authorized Investments –The Village has adopted an investment policy that applies to all the
investment activity except the Employees’ Pension Funds, which are organized and administered
separately, as listed below, or for funds related to the issuance of debt where there are other
existing policies or indentures in effect for such funds.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
43
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
The Village is authorized to invest its funds as follows:
1. Banks, Qualified Public Depositories with a collateral pledge level of twenty-five percent
or fifty percent;
2. U.S Treasury obligations and obligations the principal and interest of which are backed
or guaranteed by the full faith and credit of the U.S Government;
3. Debt obligations, participations or other instruments issued or fully guaranteed by any
U.S. Federal agency, instrumentality or government sponsored enterprise,
4. Supra-Nationals, U.S. dollar denominated debt obligations of a multilateral organization
of governments where the U.S. is a shareholder and voting member with a minimum
credit quality rating of A-1/P-1, AA-/Aa3 or equivalent,
5. U.S. dollar denominated corporate notes, bonds or other debt obligations issued or
guaranteed by a domestic or foreign corporation, financial institution, non-profit or other
entity with a minimum credit quality rating of A-1/P-1, A-/A3 or equivalent,
6. Obligations, including both taxable and tax-exempt, issued or guaranteed by any State,
territory or possession of the United States, political subdivision, public corporation,
authority, agency board, instrumentality or other unit of local government of any State or
territory with a minimum credit quality rating of SP-1/MIG 1, A-/A3 or equivalent,
7. Mortgage-backed securities (MBS), backed by residential, multi-family or commercial
mortgages, that are issued or fully guaranteed as to principal and interest by a U.S.
Federal agency or government sponsored enterprise, including but not limited to pass-
throughs, collateralized mortgage obligations (CMOs) and REMICs,
8. Asset-backed securities (ABS) whose underlying collateral consists of loans, leases or
receivables, including but not limited to auto loans /leases, credit card receivables,
student loans, equipment loans /leases, or home-equity loans with a minimum credit
quality rating of A-1/P-1, AAA/Aaa or equivalent,
9. U.S. dollar denominated commercial paper issued or guaranteed by a domestic or foreign
corporation, company, financial institution, trust or other entity, including both unsecured
debt and asset-backed programs with a minimum credit quality rating of A-1/P-1 or
equivalent,
10. Shares in open-end and no-load money market mutual funds, provided such funds are
registered under the Investment Company Act of 1940 and operate in accordance with
Rule 2a-7 with a minimum credit quality rating of AAAm/Aaa-mf or equivalent,
11. State, local government or privately-sponsored investment pools that are authorized
pursuant to state law with a minimum credit quality rating of AAAm/Aaa-mf or
equivalent.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
44
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
The Village General Employees’ Retirement Fund is authorized to invest its funds as follows:
1. Interest-bearing time deposits in qualified public depositories, as defined in Chapter 280,
Florida Statutes;
2. The Local Government Surplus Funds Trust Fund or any intergovernmental investment
pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in
Chapter 163, Florida Statutes;
3. Securities and Exchange Commission registered money market funds with the highest
credit quality rating from a nationally recognized rating agency minimum credit quality
rating of A-1 from S&P or P-1 from Moody’s;
4. Obligations issued by the U.S. Government or obligations guaranteed by agencies or
instrumentalities of the U.S. Government;
5. Foreign Securities, including convertible bonds, convertible preferred issues and
preferred stock;
6. Equities, including publicly traded REITS, commodities, convertible bonds, convertible
preferred issues and preferred stock. Foreign security convertibles are limited to those
that settle in U.S. dollars and are traded on one or more of the nationally recognized
national exchanges;
7. Bonds or any other evidence of indebtedness issued or guaranteed by a corporation
organized under the laws of the United States, any state or organized territory of the
United States, or the District of Columbia, provided the issues are traded on any one (1)
or more of the recognized national stock exchanges or over the counter and holds a
minimum credit rating of BBB from S&P or Baa from Moody’s, except that up to 20% of
the fixed income portfolio may be held in securities that do not meet this criteria. The
weighted average quality rating of the portfolio will be A or better and the effective
duration of the portfolio shall be kept within 20% of Barclays Aggregate Index;
8. Comingled stock, bond or money market funds;
9. Securities of, or interest in, any open-end or closed-end management-type investment
company or investment trust registered under the Investment Company Act of 1940, 15
U.S.C. sections 80a-1 et seq., as amended from time to time, provided that the portfolio
of such investment company or investment trust is limited to obligations of the United
States Government or any agency or instrumentality thereof and to repurchase
agreements fully collateralized by such United States Government obligations, and
provided that such investment company or investment trust takes delivery of such
collateral either directly or through an authorized custodian;
10. Other investments authorized by law or by ordinance by the Village.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
45
NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)
Authorized Investments (Continued)
Investments of the Fire and Police Retirement Fund can consist of the following:
1. Time or savings accounts of a national bank, a state bank insured by the Federal Deposit
Insurance Corporation, or a savings, building and loan association insured by the Federal
Deposit Insurance Corporation;
2. Obligations issued by the U.S. Government, or an agency or instrumentality of the U.S.
Government, as well as obligations guaranteed by agencies or instrumentalities of the
U.S. Government, including mortgage-related or asset-backed securities;
3. Bonds, stocks, or any other evidence of indebtedness issued or guaranteed by a
corporation organized under the laws of the United States, any state or organized territory
of the United States, or the District of Columbia, provided:
a. The corporation is listed on any one (1) or more of the recognized national stock
exchanges and holds a rating in one of the three (3) highest classifications by a
major rating service; and
b. The Board shall not invest more than five (5) percent of its assets in the common
stock, capital stock, bonds or indebtedness of any one (1) issuing company, nor
shall the aggregate investment of in any one (1) issuing company exceed five (5)
percent of the outstanding capital stock of that company, nor shall the aggregate
of its investments in equities at cost exceed sixty (60) percent of the pension
funds’ assets;
4. Notwithstanding any provision of this section to the contrary, the Board is specifically
authorized to invest in foreign securities to the extent authorized by Sections 175.071(1)
and 185.06(1)(b), Florida Statutes;
5. Fixed income investments defined as preferred issues and fixed income securities
provided all issues shall meet or exceed S&P’s A or Moody’s A credit rating;
6. Money market funds, defined as fixed income securities having a maturity of less than
one year provided all issues shall meet or exceed S&P’s A1 or Moody’s P1 credit rating;
7. Bonds issued by the State of Israel;
8. Purchases in commingled real estate funds.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
46
NOTE 4 – RECEIVABLES
Receivables at September 30, 2020, were as follows:
General
Fund
Country
Club
Utility franchise fees & taxes $ 322,033 $
Conroy Drive assessment 870
Other accounts receivable 17,072 32,348
Total accounts receivable $ 339,975 $ 32,348
NOTE 5 – CAPITAL ASSETS
Capital Assets activity for the year ended September 30, 2020, 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 17,716,557 291,805 (17,344,872) 663,490
Capital assets being
depreciated:
Buildings 9,930,922 16,389,710 (9,195) 26,311,437
Improvements 16,113,635 3,423,525 19,537,160
Machinery and equipment 2,419,159 1,612,801 (51,794) 3,980,166
Vehicles 5,100,584 1,157,651 (412,683) 5,845,552
Total at historical cost: 53,336,746 22,875,492 (17,818,544) 58,393,694
Less accumulated depreciation:
Buildings (6,389,095) (330,322) 9,195 (6,710,222)
Improvements (9,790,751) (553,155) (10,343,906)
Machinery and equipment (1,665,282) (213,573) 51,794 (1,827,061)
Vehicles (3,162,502) (441,240) 369,912 (3,233,830)
Total accumulated
depreciation (21,007,630) (1,538,290) 430,901 (22,115,019)
Governmental activities
capital assets, net $ 32,329,116 $ 21,337,202 $(17,387,643) $ 36,278,675
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
47
NOTE 5 – CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $ 90,125
Public safety 489,243
Public works 389,786
Community development 34,852
Leisure services 534,284
Total depreciation expense, governmental activities $ 1,538,290
Business-type activities:
Beginning
Balance Additions Deletions
Ending
Balance
Capital assets not being
depreciated:
Land $ 1,051,311 $ $ $ 1,051,311
Construction in progress 227,818 (227,818)
Capital assets being
depreciated:
Buildings 465,122 (328,260) 136,862
Improvements 7,606,684 16,489 (8,990) 7,614,183
Machinery and equipment 48,800 41,991 (15,000) 75,791
Vehicles 23,619 23,619
Total at historical cost: 9,399,735 82,099 (580,068) 8,901,766
Less accumulated depreciation:
Buildings (465,122) 328,260 (136,862)
Improvements (3,862,128) (632,132) 8,990 (4,485,270)
Machinery and equipment (31,710) (7,396) 15,000 (24,106)
Vehicles (23,619) (23,619)
Total accumulated
depreciation (4,358,960) (663,147) 352,250
(4,669,857)
Business-type activities
capital assets, net $ 5,040,775 $ (581,048) $ (227,818)
$ 4,231,909
Included in Governmental deletions and Business-type additions was a fully depreciated vehicle
with an original cost of $23,619.
The General Fund is currently maintaining the Country Club building which is also capitalized in
the Governmental Activities. The Village believes this building serves the community as a
whole in addition to supporting the golf course activities. Once the 2006 promissory note of the
country club enterprise fund is paid, rental payments for the use of the building will be started.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
48
NOTE 6 – LONG TERM LIABILITIES
Change in Long-Term Liabilities
Long-term liability activity for the year ended September 30, 2020, was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Amount
Due
Within
One Year
Governmental activities:
Direct borrowings and
direct placements
Loans payable $ 13,515,000 $ $ (835,000) $ 12,680,000 $ 865,000
Capital leases 265,522 1,009,529 (99,496) 1,175,555 189,397
Total 13,780,522 1,009,529 (934,496) 13,855,555 1,054,397
OPEB (see Note 13) 1,605,572 (827,498) 778,074
Net pension liability
(see Note 8) 3,568,305 1,892,671 5,460,976
Compensated absences
payable 1,351,445 1,195,182 (981,273) 1,565,354 1,205,322
Total $ 20,305,844 $ 4,097,382 $(2,743,267) $ 21,659,959 $ 2,259,719
Business-type activities:
Direct borrowings and
direct placements
Loans payable $ 1,618,633 $ $ (333,965) $ 1,284,668 $ 348,241
OPEB (see Note 13) 36,117 (10,396) 25,721
Compensated absences
payable 17,817 27,195 (2,379) 42,633 28,990
Total $ 1,672,567 $ 27,195 $ (346,740) $ 1,353,022 $ 377,231
Governmental activities other postemployment benefit obligations, compensated absences and
net pension liabilities are expected to be paid out of the general fund.
Loans Payable from Direct Borrowings and Direct Placements
$4,893,673 Promissory Note
The Village Council adopted Resolution No. 23-2006 authorizing the issuance of a note in the
amount of $4,893,673 to finance certain capital expenditures relating to the municipal golf
course and country club. The revenues of the Country Club are pledged to secure the loan.
Principal and interest payments are due semi-annually in the amount of $199,079, with a final
maturity date of April 1, 2024.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
49
NOTE 6 – LONG TERM LIABILITIES (Continued)
$4,893,673 Promissory Notes (Continued)
The interest rate on the loan is 4.11% and is subject to adjustment in the event of taxability of the
interest on this note. As of September 30, 2020, the principal amount outstanding was
$1,284,668 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
2021 $ 348,241 $ 49,918 $ 398,159
2022 362,904 35,255 398,159
2023 378,185 19,974 398,159
2024 195,338 4,074 199,412
$ 1,284,668 $ 109,221 $ 1,393,889
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. Due to the
Golf Course and Country Club reopening after being closed for renovations and then being shut
down due to the pandemic this requirement was not met.
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. The Bank has
not made any such claim.
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, 2020
50
NOTE 6 – LONG TERM LIABILITIES (Continued)
Non-Ad Valorem Revenue Note, Series 2017 (Continued)
This note may be prepaid in whole but not in part at any time after June 1, 2025, at a redemption
price equal to 100% of the principal amount outstanding plus accrued interest through the
redemption date. As of September 30, 2020, 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, 2020, the principal amount outstanding was $3,780,000 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
2021 $ 865,000 $ 426,794 $ 1,291,794
2022 900,000 394,097 1,294,097
2023 935,000 359,981 1,294,981
2024 970,000 324,734 1,294,734
2025 1,005,000 288,068 1,293,068
2026 - 2030 5,535,000 934,831 6,469,831
2031 - 2032 2,470,000 118,828 2,588,828
$ 12,680,000 $ 2,847,333 $ 15,527,333
The loan agreements include a provision that upon the occurrence of any event of default, the
notes shall bear interest at the Default Rate so long as the event of default shall be continuing.
The Default rate for the Series 2017A is 6% and the rate for the Series 2017B is 7%.
Governmental Activities Capital Leases
The Village entered into capital lease agreements for the purpose of financing the purchase of
vehicles. Principal and interest payments are due annually. As of September 30, 2020, the
principal amounts outstanding were $1,175,555 and the net book value of the equipment was
$1,289,056. Amortization of leased equipment under capital assets is included with depreciation
expense. The interest rates on the leases range from 2.38% 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, 2020
51
NOTE 6 – LONG TERM LIABILITIES (Continued)
Governmental Activities Capital Leases (Continued)
Annual debt service requirements to maturity are as follows:
Year Ending Principal Interest Total
2021 $ 189,397 $ 42,650 $ 232,047
2022 194,272 37,775 232,047
2023 202,849 29,198 232,047
2024 133,673 20,164 153,837
2025 137,713 16,125 153,838
2026 81,379 11,955 93,334
2027 236,272 9,090 245,362
$ 1,175,555 $ 166,957 $ 1,342,512
NOTE 7 – RISK MANAGEMENT
The Village is exposed to various risks of loss related to torts: theft of, damage to, and
destruction of assets; errors and omissions; and natural disasters.
The Village currently reports all of its risk management activities in the General Fund. Claims
expenditures and liabilities are reported when it is probable that a loss has occurred and the
amount of the loss can be reasonably estimated. These losses include an estimate of claims that
have been incurred but not reported.
The Village is covered by Florida Statutes under the Doctrine of Sovereign Immunity which
effectively limits the amount of liability of municipalities to individual claims of
$200,000/$300,000 for all claims relating to the same incident. However, under certain
circumstances, a plaintiff can seek to recover damages in excess of statutory limits by
introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do
not apply to claims filed in federal courts.
There have been no significant reductions in insurance coverage in the prior year. No
settlements exceeded insurance coverage for the past three years.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
52
NOTE 8 – EMPLOYEE RETIREMENT PLANS
The Village maintains the following two separate single employer defined benefit plans: Village
of North Palm Beach Fire and Police Retirement Fund (F&P), covering firefighters and police
officers, and Village of North Palm Beach General Employees Retirement Fund (GERF),
covering substantially all other full-time Village employees. Both plans are reported as pension
trust funds and included as part of the Village’s reporting entity. The Police and Fire Fund issued
separate stand-alone financial statements for the year ended September 30, 2020, 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, 2020
53
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
PLAN DESCRIPTION, INVESTMENT AND CONTRIBUTION INFORMATION
The following schedule is provided for general information purposes only and is derived from
the respective actuarial reports and Village information for the two retirement plans. Plan
participants should refer to the appropriate source documents for more complete information on
the plans.
General Employees’ Fire and Police
Plan Description:
Authority Village Ordinance Village Ordinance/State
Asset Valuation:
Reporting Fair Value Fair Value
Legal Reserves None None
Long-Term Receivable None None
Internal/Participant Loans None None
Membership of each plan consisted of the following at October 1, 2019:
GERF F&P
Inactive Plan Members or Beneficiaries
currently receiving benefits 37 28
Inactive Plan Members entitled to but
not yet receiving benefits 37 13
Active Plan Members 27 56
Total 101 97
General Employees' Retirement System
Plan Description. The plan is established under Code of Ordinances for the Village of North
Palm Beach, Florida, Part II, Chapter 2, and was most recently amended under Ordinance No.
2010-07. The Plan is also governed by certain provisions of Part VII, Chapter 112, Florida
Statutes and the Internal Revenue Code. The Plan provides retirement benefits as well as death
benefits. All full time general employees who are not sworn police officers or firefighters shall
become members of the system on October 1st following completion of 12 months of
employment as a condition of employment. For those employees retired before February 1,
1982, those employees hired after September 30, 2000, or those employees hired before October
1, 2000, who elect to contribute an extra 2%, a 3% Cost of Living increase is paid annually from
the Plan. Authority to establish and amend the benefit provisions of the plan rests with the
Village Council.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
54
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
All benefits vest based on the following years of credited service:
Years of
Credited Service Vested %
Under 5 0%
5 or 6 50%
7 or 8 75%
9 or more 100%
Employees become eligible for normal retirement benefits after attaining the age of 60 and
completing nine years of credited service, or attaining the age of 65 (depending on employee
contribution rate). The normal retirement benefit consists of a life annuity, options available,
(subject to cost of living increases not to exceed 3% a year), of either 2%, 2.25%, or 2.5%
(depending on employee contribution rate) of Average Monthly Earnings (AME) times credited
service up to 20 years plus 1% of AME times credited service over 20 years. Early retirement
benefits can be received at age 55. The benefit is determined as for normal retirement and
payable at normal retirement date or payable immediately after reduction by 5% for each year by
which the benefit commencement date precedes the normal retirement date. If an active member
dies, his beneficiary receives a refund of member contributions without interest. For a member
who is age 55 and has at least five years of service but who dies before commencement of
retirement benefits, a monthly benefit is payable to the designated beneficiary; the benefit is
calculated as though the member had retired on his date of death and payable according to the
option elected by the employee. For an active member who has at least five years of credited
service and dies prior to reaching normal retirement date, a benefit equal to his vested accrued
benefit will be paid to his beneficiary for ten years.
If an employee terminates his employment, he is entitled to the following:
- With less than five years of credited service, a refund of member contributions
without interest and no other benefit.
- With five or more years of credited service, a refund of member contributions, the
vested accrued benefit payable at normal retirement date or at any time after age 55
is attained, with the benefit being subject to the same reduction as for early
retirement benefits. The vesting schedule is listed above.
"Average Monthly Earnings" is the average during the 5 years within the last 10 years of
employment which produces the highest average.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
55
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
"Credited Service" consists of the total number of years and fractional parts of years of actual
service with the Village and shall apply to an employee whose employment is terminated with
the Village and who recommences fulltime employment within two years from the date of
termination.
Asset Allocation. The plan’s adopted asset allocation policy as of September 30, 2020, is as
follows:
Asset Class Target Allocation
Domestic equity 45%
International equity 15
Domestic bonds 40
Total 100%
Rate of Return. For the year ended September 30, 2020, the annual money-weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 9.28 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, 2020
56
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
The normal retirement benefit consists of ten years certain and life thereafter, with other options
available, (subject to cost of living adjustments not to exceed 3% a year), of 2.75% of AME
times the years of credited services starting 10/1/18; for years prior to 10/1/18 the percentage is
2.5%; with a maximum benefit of 75% of AME. 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, 2020, there was $190,575 in the DROP, this amount is included
in both the Total Pension Liability and the Plan Fiduciary Net Position. Additional information
about the DROP can be obtained from the ordinance.
Asset Allocation. The plan’s adopted asset allocation policy as of September 30, 2020, is as
follows:
Asset Class Target Allocation
Domestic equity 50%
International equity 10
Domestic bonds 30
Real estate 10
Total 100%
Rate of Return. For the year ended September 30, 2020, the annual money-weighted rate of
return on Pension Plan investments, net of pension plan investment expense, was 4.62 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, 2020
57
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Contributions. Firefighter members are required to contribute 7.00% of their basic compensation
to the plan. Police Officer members are required to contribute 6.00% of their basic
compensation to the plan, effective the first payroll period after October 1, 2020 they shall be
required to contribute 7.00%. 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 $339,509 during the fiscal year ended September 30, 2020.
All Retirement Plans
Net Pension Liability. The components of net pension liability of the Village on September 30,
2020 were as follows:
General
Employees
Fire and
Police
Total pension liability $ 18,440,365 $ 32,833,494
Plan fiduciary net position (17,990,079) (28,308,304)
Village's net pension liability $ 450,286 $ 4,526,190
Plan fiduciary net position as a
percentage of total pension liability 97.56% 86.22%
The mortality assumption rates were changed which decreased the pension liability of the Fire
and Police plan by $981,457.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
58
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as
of October 1, 2019 updated to September 30, 2020 using the following actuarial assumptions
applied to the September 30, 2020 measurement period.
General Employees Fire and Police
Inflation 2.50% 2.50%
Salary increases Service based Service based
Investment rate of return 6.75% 7.70%
Mortality RP2000 Combined
Healthy Participant,
Scale BB.
Female: 100%
Annuitant White
Collar,
Male Annuitant White
Collar/50% Annuitant
Blue Collar
PubS.H-2010 for
Employees, set forward
one year
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of arithmetic real rates of return for each major
asset class included the pension plan’s target asset allocation as of September 30, 2020, are
summarized in the following table:
Asset Class
Long-Term Expected Real Rate of
Return
General
Employees
Fire and
Police
Domestic equity 6.75% 7.50%
International equity 6.50% 8.50%
Domestic bonds 2.50% 2.50%
Real estate N/A 4.50%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
59
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability was 6.75 percent for
the General Employees Retirement Fund and 7.70 percent for the Fire and Police Retirement
Fund. The projection of cash flows used to determine the discount rates assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate. Based on those assumptions, the pension plans’ fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following
presents the net pension liabilities of the Village, calculated using the discount rates above, as
well as what the Village’s net pension liabilities would be if it were calculated using a discount
rate that is one percentage-point lower or one percentage-point higher than the current rate.
General Employees' Retirement System
Current
Discount
1% Decrease Rate 1% Increase
5.75% 6.75% 7.75%
Village's net pension liability $ 2,915,900 $ 450,286 $ (1,586,353)
Fire and Police Retirement System
Current
Discount
1% Decrease Rate 1% Increase
6.70% 7.70% 8.70%
Village's net pension liability $ 9,225,434 $ 4,525,190 $ 637,598
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, 2020, are reported using a measurement date of September 30, 2019.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
60
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation as
of October 1, 2018 updated to September 30, 2019 using the following actuarial assumptions
applied to the September 30, 2019, measurement period.
General Employees Fire and Police
Inflation 2.75% 2.50%
Salary increases Service based Service based
Investment rate of return 6.75% 7.70%
Mortality
Female: RP2000,
100%Annuitant White
Collar, Scale BB
Male: RP2000,
50%Annuitant White
Collar/50% Annuitant
Blue Collar, Scale BB
Female: RP2000
Generational,
100%Annuitant White
Collar, Scale BB
Male: RP2000
Generational,
10%Annuitant White
Collar/90% Annuitant
Blue Collar, Scale BB
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. Best estimates of arithmetic real rates of return for each major
asset class included the pension plan’s target asset allocation as of September 30, 2019, are
summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected Real
Rate of Return
General
Employees
Fire and
Police
General
Employees
Fire and
Police
Domestic equity 45% 50% 6.75% 7.50%
International equity 15 10 6.50% 8.50%
Domestic bonds 40 30 2.50% 2.50%
Real estate N/A 10 N/A 4.50%
Total 100% 100%
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
61
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans (Continued)
Discount Rate. The discount rate used to measure the total pension liability was 6.75 percent for
the General Employees Retirement Fund and 7.70 percent for the Fire and Police Retirement
Fund. The projection of cash flows used to determine the discount rates assumed that plan
member contributions will be made at the current contribution rate and that sponsor contributions
will be made at rates equal to the difference between actuarially determined contribution rates
and the member rate. Based on those assumptions, the pension plans’ fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
General Employees' Retirement System
Changes in Net Pension Liability
Using a measurement date of September 30, 2019, the components of the net pension liability
reported by the Village at September 30, 2020, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability
(a)-(b)
Balances at September 30, 2018 $ 17,833,215 $ 16,399,189 $ 1,434,026
Changes due to:
Service cost 251,678 251,678
Interest 1,201,578 1,201,578
Difference between expected
and actual experience (625,948) (625,948)
Changes of Assumptions
Employer contributions 358,152 (358,152)
Employee contributions 97,522 (97,522)
Benefit payments and refunds (567,472) (567,472)
Net investment income 721,786 (721,786)
Administrative expenses (38,690) 38,690
Total changes 259,836 571,298 (311,462)
Balances at September 30, 2019 $ 18,093,051 $ 16,970,487 $ 1,122,564
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
62
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Current
Discount
1% Decrease Rate 1% Increase
5.75% 6.75% 7.75%
Village's net pension liability $ 3,636,396 $ 1,122,564 $ (949,841)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2020, the Village recognized pension expense of
$(167,879). 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 $ $ 91,038
Differences between expected and actual
experience 278,199
Village plan contributions subsequent
to the measurement date 232,738
Total $ 232,738 $ 369,237
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
63
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
General Employees' Retirement System (Continued)
Pension expense and deferred outflows and inflows of resources (Continued)
The deferred outflows of resources totaling $232,738 resulting from Village contributions to the
plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2020. 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
2021 $ (416,784)
2022 (71,301)
2023 42,819
2024 76,029
2025
Thereafter
$ (369,237)
Fire and Police Retirement System
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
Current
Discount
1% Decrease Rate 1% Increase
6.70% 7.70% 8.70%
Village's net pension liability $ 8,931,297 $ 4,338,412 $ 577,783
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
64
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Changes in Net Pension Liability
Using a measurement date of September 30, 2019, the components of the net pension liability
reported by the Village at September 30, 2020, were as follows:
Total Fiduciary Net
Pension Net Pension
Description
Liability
(a)
Position
(b)
Liability
(a)-(b)
Balances at September 30, 2018 $ 27,159,019 $ 25,024,740 $ 2,134,279
Changes due to:
Service cost 1,031,048 1,031,048
Interest 2,236,125 2,236,125
Change in excess state money (600,965) (600,965)
Differences between expected
and actual experience (138,741) (138,741)
Change of benefit terms 205,896 205,896
Change of assumptions 1,660,762 1,660,762
Employer contributions 918,263 (918,263)
Employer contributions-state 328,826 (328,826)
Employee contributions 239,271 (239,271)
Employee contributions buy back 6,698 6,698
Benefit payments and refunds (793,277) (793,277)
Net investment income 787,045 (787,045)
Administrative expenses (83,413) 83,413
Total changes 3,607,546 1,403,413 2,204,133
Balances at September 30, 2019 $ 30,766,565 $ 26,428,153 $ 4,338,412
The pension liability of the Fire and Police plan increased by $205,896 due to the discount rate
going from 7.75% to 7.70% and $1,660,762 due to changes in the benefit terms, the most
significant of which was a prospective increase of the benefit accrual rate to 2.75% from 2.50%
for Credited Service earned after September 30, 2018 and an increase in the maximum accrued
benefit to 75% AME from 60%.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
65
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
Fire and Police Retirement System (Continued)
Pension expense and deferred outflows and inflows of resources
For the fiscal year ended September 30, 2020, the Village recognized pension expense of
$2,625,446. In addition, the Village reported deferred outflows of resources and deferred
inflows of resources related to the Plan from the following sources:
Deferred Deferred
Outflows Inflows
Description of Resources of Resources
Net difference between projected and actual
earnings on plan investments $ 789,688 $
Differences between expected and actual
experience 220,812 262,136
Change of assumptions 470,424 679,880
Village plan contributions subsequent
to the measurement date 1,203,271
Total $ 2,684,195 $ 942,016
The deferred outflows of resources totaling $1,203,271 resulting from Village contributions to
the plan subsequent to the measurement date, will be recognized as a reduction of the net pension
liability in the fiscal year ended September 30, 2020. 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
2020 $ 168,281
2021 61,902
2022 182,871
2023 149,558
2024 (85,693)
Thereafter 61,989
$ 538,908
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
66
NOTE 8 – EMPLOYEE RETIREMENT PLANS (Continued)
All Retirement Plans
Summarized information
The Village’s total pension liability, plan fiduciary net position, net pension liability, pension
related deferred outflows and inflows, and pension expense for the fiscal year ended September
30, 2020, using a measurement date of September 30, 2019, are as follows:
General
Employees
Fire and
Police Total
Total pension liability $ 18,093,051 30,766,565 $ 48,859,616
Plan fiduciary net position 16,970,487 26,428,153 43,398,640
Net pension liability 1,122,564 4,338,412 5,460,976
Deferred outflows of resources 232,738 2,684,195 2,916,933
Deferred inflows of resources 369,237 942,016 1,311,253
Pension expense (167,879) 2,625,446 2,457,567
Accounts Payable - - -
NOTE 9 – ON-BEHALF PAYMENTS
The state makes a contribution to the Fire and Police Officers’ Retirement System from the
firefighters’ and police officers’ Insurance Premium Tax. For the fiscal year ended
September 30, 2020, $339,482 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, 2020
67
NOTE 10 – PENSION PLAN FINANCIAL INFORMATION
Generally accepted accounting principles (GAAP) requires that financial statements for
individual pension plans be presented in the notes to the financial statements of the primary
government if separate GAAP financial reports have not been issued. The General Employees’
pension fund does not have a separate GAAP report issued, and the financial information as of
September 30, 2020, is presented below.
STATEMENT OF FIDUCIARY NET POSITION
General
Employees’
Pension
Assets
Cash and cash equivalents $ 367,637
Investments:
Fixed income exchange traded funds 3,898,565
Equity exchange traded funds 1,273,443
Fixed income mutual funds 2,470,142
Domestic equity mutual funds 8,404,532
International equity mutual funds 1,631,353
Accrued dividends and interest 7
Prepaids 4,282
Total assets 18,049,961
Liabilities
Accounts payable 16,576
Accounts payable, broker-dealers 43,306
Total liabilities 59,882
Net position
Held in trust for pension benefits and
other purposes
$ 17,990,079
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
68
NOTE 10 – PENSION PLAN FINANCIAL INFORMATION (Continued)
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
General
Employees’
Pension
Additions
Contributions
Employer $ 232,738
Plan members 85,829
Total contributions 318,567
Investment earnings
Dividends and interest 364,982
Net (decrease) in the fair value
of investments 1,183,315
Less investment expense (51,075)
Total investment earnings 1,497,222
Total additions 1,815,789
Deductions
Administration 60,096
Refund of member contributions 13,312
Benefits 722,789
Total deductions 796,197
Change in net position 1,019,592
Net position - beginning 16,970,487
Net position - ending $ 17,990,079
NOTE 11 – DEFINED CONTRIBUTION PLAN
Effective October 1, 2006, all employees of the Village may participate in one of four Money
Purchase Plans that are qualified Defined Contribution Plans adopted under the provisions of
Internal Revenue Code Section 401(a). The four pension plans include Village Manger,
Directors, General Employees, and Municipal Employees. The defined contribution plans are
administered by International City/County Management Association and Retirement Corporation
(ICMA-RC). The ICMA-RC is a nonprofit corporation organized and existing under the laws of
the State of Delaware. Contribution requirements of employees’ and the Village are established
and may be amended by the Village Council.
The vesting period for each defined contribution plan is five years, with a vesting of zero percent
in the first year, and a vesting of twenty-five percent for each year thereafter. While the plans
will not provide for retroactive funding, the vesting period shall run from each employee’s
original date of hire. If an employee terminates before becoming fully vested, forfeited amounts
will be used to reduce future Village contributions. No loans are permitted by the plan.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
69
NOTE 11 – DEFINED CONTRIBUTION PLAN (Continued)
The normal retirement age for the plan shall be age sixty. There is no waiting period for
participation in the plan. The minimum age for participation is eighteen. The Village contributes
15% of participant earnings for the plan year. Earnings include regular and bonus compensation,
but do not include overtime or commissions. Employee contributions are voluntary, after-tax
contributions that are not matched by the Village. Employees may contribute 3%, 5%, 10%, or
15% of earnings to the plan. Contributions are remitted to the trusts every payroll period.
Because the Village has little administrative involvement and does not perform the investing
function for funds in the plans, the Village’s activities do not meet the criteria for inclusion in the
fiduciary funds of a government. Consequently, the plans are not included in the Village’s financial
statements.
Plan detail for participating employees at September 30, 2020, is listed below:
Village
Manager
Directors
General
Employees
Municipal
Employees
Employee contributions $ 5,826 $ 84,543 $ 57,562 $ 89,115
Village pension expense 29,130 152,093 172,903 192,191
Forfeitures - 10,141 172,903 27,377
Payable as of fiscal year end - - - -
NOTE 12 – DEFERRED COMPENSATION PLAN ASSETS
Employees of the Village may participate in a deferred compensation plan adopted under the
provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with Respect to
Service for State and Local Governments).
The deferred compensation plan is available to all employees of the Village. Under the plan,
employees may elect to defer a portion of their salaries and avoid paying taxes on the deferred
portion until the withdrawal date. The deferred compensation amount is not available for
withdrawal by employees until termination, retirement, death, or unforeseeable emergency. A third
party administers the deferred compensation plan.
In 1998, the Village Adopted GASB-32, Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans. The Village modified its Deferred
Compensation Plan to conform with the changes in the Internal Revenue Code brought about by the
Small Business Job Protection Act of 1996 (the “Act”). The Act requires that eligible deferred
compensation plans established and maintained by governmental employers be amended to provide
that all assets of the plan be held in trust, or under one or more appropriate annuity contracts or
custodial accounts, for the exclusive benefit of plan participants and their beneficiaries. As a result
of this change, these plan assets are not property of the Village and are not subject to the claims of
the Village’s general creditors.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
70
NOTE 12 – DEFERRED COMPENSATION PLAN ASSETS (Continued)
Because the Village has little administrative involvement and does not perform the investing
function for funds in the Plan, the Village’s activities do not meet the criteria for inclusion in the
fiduciary funds of a government.
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS
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, see Note 19. Retirees of the Village pay an amount equal to the actual
premium for health insurance charged by the carrier. The premium charged includes an implied
subsidy, as the amount charged for all participants (active employee or retiree) is the same,
regardless of age. Under GASB 75, an implied subsidy is considered other post-employment
benefits (OPEB).
The following describes the Village’s OPEB Provisions:
Plan Description
The Village provides a single employer defined benefit health care plan to all of its employees
and the plan is administered by the Village. The plan has no assets and does not issue a separate
financial report.
Benefits Provided
The plan allows its employees and their beneficiaries, to continue to obtain health and dental
benefits upon retirement. The normal retirement age for police and firefighters is 55 or 52; ,
depending on the option selected by the employee and the normal retirement age for all other
Village employees is either age 60 or 65, depending on the option selected by the employee. The
benefits of the plan are in accordance with Florida Statutes, which are the legal authority for the
plan. The plan has no assets and does not issue a separate financial report.
Employees Covered by Benefit Terms
At September 30, 2020, the following employees were covered by benefit terms:
Participants
Active employees 138
Inactive employees currently receiving benefits 4
Inactive employees entitled to but not receiving benefits -
Total 142
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
71
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Contribution Requirements: The Village does not make direct contributions to the plan on behalf
of retirees. Retirees and their beneficiaries pay the same group health rates as active employees.
However, the Village’s actuaries, in their actuarial valuation, calculate an offset to the cost of
these benefits as an employer contribution, based upon an implicit rate subsidy. This offset
equals the total annual age-adjusted costs paid by the Village, or its active employees, for
coverage of the retirees and their dependents net of the retiree’s own payments for the year.
Total OPEB Liability
The Village’s total OPEB liability of $803,795 was measured as of September 30, 2020 and was
determined by the actuarial valuation as September 30, 2020.
Actuarial Assumptions and Methods
The total OPEB liability was determined using the following actuarial assumptions and other
methods:
Valuation Date: September 30, 2020
Measurement Date: September 30, 2020
Discount Rate: 2.41% per annum
Source Bond Buyer GO 20-Bond Municipal Index
Salary Increase Rate: Service based between 4% to 10% per annum
Health Care Trend Rate: An initial rate of 6.25% decreasing by 0.25%
annually to an ultimate rate of 3.99%.
Inflation Rate: 2.25%
Marriage Rate/Participation: The assumed number of eligible dependents is
based on the current portions of single and family
contracts in the census provided. The spousal
participation assumed at retirement is 75%.
Actuarial Cost Method: Entry Age Normal based on level percentage of
projected salary.
Amortization Method: Experience/Assumptions gains and losses are
amortized over the closed period of 9 years
starting on October 1, 2017, equal to the average
remaining service of active and inactive plan
members (who have no future service).
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
72
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Actuarial Assumptions and Methods (Continued)
Plan Participation Percentage: The participation percentage is the assumed rate
of future eligible retirees who elect to continue
health coverage at retirement. It is assumed that
25% of employees elect coverage. This assumes
that a one-time irrevocable election to participate
is made at retirement.
Mortality Rates: The PUB‐2010 Generational tables used are
projected by Scale MP‐2018 from 2010. Discount Rate
The Village does not have a dedicated Trust to pay retiree healthcare benefits. Per GASB 75, the
discount rate is a yield or index rate for 20-year, tax-exempt municipal bonds. As a result, the
calculation used a rate of 2.41%.
Changes in the Total OPEB Liability
Total OPEB
Liability
Balance at September 30, 2019 $ 1,641,689
Changes for the Year:
Service Cost 119,601
Interest Cost 61,990
Changes in benefit terms 655
Changes of Assumptions and Other Inputs (960,663)
Benefit Payments (59,477)
Net Change in Total OPEB Liability (837,894)
Balance at September 30, 2020 $ 803,795
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
73
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
Changes in Assumptions
The discount rate was 3.58% at 10/1/19 and 2.41% at 9/30/20, the mortality table was updated,
the coverage acceptance rate was changed from 40% 25%, and the retirement, withdrawal,
disability, and salary increase assumptions were updated to reflect those used in the most recent
pension actuarial valuations.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the Village, as well as what the Village’s total
OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point
lower or 1-percentage-point higher then the current discount rate:
1.0% Decrease Discount Rate 1.0% Increase
(1.41%) (2.41%) (3.41%)
Total OPEB Liability $ 867,562 $ 803,795 $ 744,255
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 $ 715,621 $ 803,795 $ 907,757
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the year ended September 30, 2020, the Village recognized OPEB expense of $(171,155). At
September 30, 2020, 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 $ 58,505 $ 1,274,930
Differences Between Expected and Actual Experience 846,493
Total $ 58,505 $ 2,121,423
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
74
NOTE 13 – OTHER POSTEMPLOYMENT BENEFITS (Continued)
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources will be
recognized in OPEB expense as follows:
Fiscal Year Ending:
September 30, 2021 $ (353,401)
September 30, 2022 (353,401)
September 30, 2023 (353,401)
September 30, 2024 (353,401)
September 30, 2025 (353,399)
Thereafter (295,915)
$ (2,062,918)
NOTE 14 – JOINTLY GOVERNED ORGANIZATION
The Village, through an interlocal agreement with certain other municipalities and Palm Beach
County, created the Seacoast Utility Authority (“Seacoast”) which provides water and sewer
service to the citizens of each of the participating municipalities and a portion of Palm Beach
County. Seacoast’s governing board consists of one member from each participating entity.
Seacoast is an Independent Authority organized under the laws of the State of Florida, and the
Village has no participating equity ownership in Seacoast. The Village paid $182,100 to
Seacoast during the fiscal year for water and sewer service.
NOTE 15 –INTERFUND ACTIVITY
Due from/to other funds
The $20,085 due from the Public Safety fund (a Non-Major Fund) to the General Fund are from
grant funds that have been spent but are not yet reimbursed. 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 $2,207,250 advanced from the General Fund to the Country Club Fund was to provide
$1,700,000 for the renovation of the Golf Course and an additional $507,250 for cash flow
purposes. 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, 2020
75
NOTE 15 –INTERFUND ACTIVITY (Continued)
Transfers
Interfund transfers during the year ended September 30, 2020, are as follows:
The $644,475 from the General Fund to the Capital Projects Fund and the $175,000 from the
Capital Projects Fund and the Infrastructure Surtax Fund to the Recreation Special Revenue
Fund (a Non-Major Fund) were to fund capital projects according to the original budget and
subsequent budget amendments.
NOTE 16 – CONTRACTS, COMMITMENTS AND CONTINGENCIES
Restaurant Operating Leases
The Village is committed under a lease agreement as lessor of the food and beverage operations
at the North Palm Beach Country Club. The Village is leasing the restaurant including
indoor/outdoor bar, kitchen, snack bar, beverage and server station and designated storage areas
as exclusive use premises together with non-exclusive rights to the use of the covered pavilion,
covered front entry, pool deck, banquet room, event lawn, restrooms and other public areas in
and around the Country Club to Farmer’s Table LLC (Lessee). The initial term of the lease is
five years and the lease shall automatically renew for additional five year terms unless either
party gives the other party written notice of its intent not to renew at least one hundred and
eighty days prior to the end of the term. The lease is considered for accounting purposes to be an
operating lease.
During the initial term the base rent shall be $8,333 per month. Beginning on the first date of
any renewal term, the rent shall increase by 3% over the base rent payable for the immediately
preceding twelve-month period. In addition to the base rent, the Lessee shall pay to the Village
an amount equal to five percent of lessee’s annual gross sales for Restaurant and Catering
Services over Two Million Dollars. The lessee shall also pay 50% of the electric, water/ sewer,
burglar alarm and natural gas of the premises and $12,000 toward the ad valorem property taxes
assessed by the Palm Beach County Property Appraiser and Tax Collector as a result of its
operations during the first year and in subsequent years to pay an equivalent percentage of the
total amount due.
The Village received $41,667 in rents and $27,435 in utility reimbursements for the year ended
September 30, 2020 under the terms of this lease agreement.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
76
NOTE 16 – CONTRACTS, COMMITMENTS AND CONTINGENCIES (Continued)
Restaurant Operating Leases (Continued)
Minimum-guaranteed income rental income on the lease is as follows:
Year ended September 30: Amount
2021 $ 100,000
2023 100,000
2024 100,000
2025 100,000
2026 58,333
$ 458,333
At September 30, 2020, the estimated cost of the exclusive use leased assets was $7,051,900, net
book value was $7,037,209 and depreciation expense was $14,691.
Golf Carts Operating Lease
The Village entered into a three-year operating agreement for 80 golf carts, including GPS
systems and software, for the Country Club in December 2019, at a monthly cost of $13,391. For
the fiscal year ended September 30, 2020 expenses under the lease were $160,692. Future
minimum rental commitments are as follows:
Year ended September 30: Amount
2021 $ 160,692
2022 26,782
$ 187,474
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. The fee for each year under the contract will
be based upon the budget of the North County Dispatch (NCDC) center prorated to each
contracting municipality based on that municipalities cost share. If at the end any contract year a
budget shortfall exists, each contracting municipality shall pay its share of the shortfall.
Conversely, if at the end of any contract year a budget surplus exists, such surplus shall represent
a committed fund balance to be utilized specifically for NCDC budgetary purposes. The
Village’s estimated cost for fiscal year ending September 30, 2021 is $448,244.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
77
NOTE 16 – CONTRACTS, COMMITMENTS AND CONTINGENCIES (Continued)
Contract Commitments (Continued)
Commitments outstanding on September 30, 2020 are $312,203 for the capital lease of a new fire
rescue vehicle over seven years.
Subsequent to September 30, 2020, the Village approved $321,857 for the West Alleyway
Pavement Rehabilitation Project, a seven year lease of $248,140 for a new sanitation truck and a
five year lease of $136,184 for three new police cars.
Contingencies
The Village is involved in various litigations and claims arising in the course of operations. It is
the opinion of legal counsel that the likelihood of unfavorable outcome and the amounts of
potential losses cannot be reasonably determined for all claims at this time.
NOTE 17 – COVID-19
On January 30, 2020, the World Health Organization (WHO) announced a global health
emergency because of a new strain of coronavirus originating in Wuhan, China (the COVID-19
outbreak) and the risks to the international community as the virus spreads globally beyond its
point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic,
based on the rapid increase in exposure globally. As a result of worldwide reporting of COVID-
19 infections, certain national, state, and local governmental authorities have issued stay-at-home
orders, proclamations and/or directives aimed at minimizing the spread of COVID-19.
Additionally, more restrictive proclamations and/or directives may be issued in the future. As a
result, certain internal operations, communications and administrative operations of the Village
have been disrupted. In addition to implementing protective guidelines and protocols, the Village
considered and implemented preventative and protection measures recommended by the Centers
for Disease Control and Prevention (CDC) aimed at providing a safe environment for Village
personnel during the course of the COVID-19 pandemic.
The ultimate impact of the COVID-19 pandemic on the Village’s operations is unknown and will
depend on future developments, which are highly uncertain and cannot be predicted with
confidence, including the duration of the COVID-19 outbreak, new information which may
emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and
protective actions that other governments or agencies may direct, which may result in an
extended period of operational disruption. Any resulting financial impact cannot be reasonably
estimated at this time but could be anticipated to have a material adverse impact on the Village’s
operations, financial position, and results of operations for fiscal year 2021.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Basic Financial Statements
September 30, 2020
78
NOTE 18 – NEW ACCOUNTING STANDARDS
Below is a brief description and effective date of new accounting standards that could have a
significant impact on the Village.
• GASB Statement No. 87, Leases. This Statement will increase the usefulness of
governments’ financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as
inflows of resources or outflows of resources based on the payment provisions of the
contract. It establishes a single model for lease accounting that is based on the
foundational principle that leases are financings of the right to use an underlying asset.
This Statement is effective for the fiscal year ending September 30, 2022.
• GASB Statement No. 84, Fiduciary Activities. This Statement will improve guidance
regarding the identification of fiduciary activities for accounting and financial reporting
purposes and how those activities should be reported. This Statement is effective for the
fiscal year ending September 30, 2021.
• 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. This Statement is effective for the fiscal year ending September 30,
2022.
Management is currently evaluating the impact of the adoption of these statements on the
Village’s financial statements.
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
PENSION AND OTHER POSTEMPLOYMENT BENEFIT TREND INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
2018 2019 2020
Total OPEB liability
Service cost 274,702$ 113,906$ 119,601$
Interest cost 124,097 63,447 61,990
Change in benefit terms 655
Difference between expected
and actual experience (1,354,390)
Changes of assuptions and other imputs (677,494)78,007 (960,663)
Benefit payments (134,593)(56,645)(59,477)
Net change in total OPEB liability (1,767,678) 198,715 (837,894)
Total OPEB liability, beginning of year 3,210,652 1,442,974 1,641,689
Total OPEB liability, end of year 1,442,974$ 1,641,689$ 803,795$
Covered employee payroll 10,148,392$ 10,566,520$ 9,347,911$
Net OBEB liability as a percentage of
covered employee payroll 14.22%15.54%8.60%
Changes of Assumptions
Discount rate (3.36% at 10/1/17)4.15%3.58%2.41%
Coverage acceptance rate 40.00%40.00%25.00%
NOTE: The Village implemented GASB Statement 75 in 2018; information is presented for those
years in which information is available.
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Required Supplemental Information
September 30, 2020
Schedule of Changes in Total OPEB Liability
Last Ten Fiscal Years
79
Reporting Year 2014 2015 2016 2017 2018
Measurement Year 2015 2016 2017 2018 2019
Total pension liability:
Service cost 374,926$ 317,676$ 357,344$ 275,504$ 250,072$
Interest 972,865 1,048,746 1,106,085 1,116,142 1,162,025
Differences between Expected and
Actual Experience (329,040) (129,381) (246,222) (307,977)
Assumption changes 928,295 23,053
Benefit payments, including
refunds of employee contributions (263,674) (293,890) (331,174) (454,571) (472,027)
Net change in total pension liability 1,084,117 743,492 1,931,169 713,906 632,093
Total pension liability - beginning 12,728,438 13,812,555 14,556,047 16,487,216 17,201,122
Total pension liability - ending (a)13,812,555$ 14,556,047$ 16,487,216$ 17,201,122$ 17,833,215$
Plan fiduciary net position
Contributions - employer 562,953$ 464,189$ 458,615$ 527,617$ 451,560$
Contributions - Employees 142,609 125,738 126,947 110,417 101,858
Net investment income 1,072,009 (96,116) 1,161,530 1,487,313 1,190,603
Benefit payments, including
refunds of employee contributions (263,674) (293,890) (331,174) (454,571) (472,027)
Administrative expenses (17,171) (20,655) (24,794) (22,361) (21,489)
Net change in plan fiduciary net position 1,496,726 179,266 1,391,124 1,648,415 1,250,505
Plan fiduciary net position - beginning 10,433,153 11,929,879 12,109,145 13,500,269 15,148,684
Plan fiduciary net position - ending (b)11,929,879$ 12,109,145$ 13,500,269$ 15,148,684$ 16,399,189$
Net pension liability (a) - (b)1,882,676$ 2,446,902$ 2,986,947$ 2,052,438$ 1,434,026$
Plan fiduciary net position as a percentage
of the total pension liability 86.37%83.19%81.88%88.07%91.96%
Covered payroll 2,701,771$ 2,375,585$ 2,376,069$ 2,072,121$ 1,966,566$
Net pension liability as a percentage of
covered payroll 69.68%103.00%125.71%99.05%72.92%
Changes of Assumptions
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, 2020
General Employees Retirement Fund
80
2019 2020
2020 2021
251,678$ 216,125$
1,201,578 1,211,026
(625,948) (343,736)
(567,472) (736,101)
259,836 347,314
17,833,215 18,093,051
18,093,051$ 18,440,365$
358,152$ 232,738$
97,522 85,829
721,786 1,497,222
(567,472) (736,101)
(38,690) (60,096)
571,298 1,019,592
16,399,189 16,970,487
16,970,487$ 17,990,079$
1,122,564$ 450,286$
93.80%97.56%
1,834,767$ 1,612,777$
61.18%27.92%
81
Reporting Year 2014 2015 2016 2017 2018
Measurement Year 2015 2016 2017 2017 2019
Total pension liability:
Service cost 699,244$ 810,654$ 833,909$ 851,932$ 897,280$
Interest 1,419,425 1,555,518 1,738,069 1,779,947 1,922,314
Changes in excess state money 90,535 67,645 79,505 83,231 77,905
Changes of benefit terms 1,682
Differences between Expected and
Actual Experience 483,189 (31,422) (197,249) 187,041
Changes of assumptions 246,146 (1,223,780) 198,680 174,565
Contributions - Buy Back 65,446 7,609 7,902 4,746
Benefit payments, including
refunds of employee contributions (451,574) (611,678) (653,993) (680,673) (751,317)
Net change in total pension liability 2,003,776 2,372,456 749,897 2,043,770 2,512,534
Total pension liability - beginning 17,476,586 19,480,362 21,852,818 22,602,715 24,646,485
Total pension liability - ending (a)19,480,362$ 21,852,818$ 22,602,715$ 24,646,485$ 27,159,019$
Plan fiduciary net position
Contributions - employer 943,634$ 975,733$ 969,836$ 945,880$ 822,951$
Contributions - State 321,230 298,340 310,200 309,138 308,600
Contributions - Employees 87,010 151,450 190,989 211,474 224,469
Contributions - Buy Back 65,446 7,609 7,902 4,746
Net investment income 1,468,473 111,884 1,475,735 2,198,298 1,637,891
Benefit payments, including
refunds of employee contributions (451,574) (611,678) (653,993) (680,673) (751,317)
Administrative expenses (66,748) (76,457) (76,967) (76,293) (78,399)
Net change in plan fiduciary net position 2,302,025 914,718 2,223,409 2,915,726 2,168,941
Plan fiduciary net position - beginning 14,499,921 16,801,946 17,716,664 19,940,073 22,855,799
Plan fiduciary net position - ending (b)16,801,946$ 17,716,664$ 19,940,073$ 22,855,799$ 25,024,740$
Net pension liability (a) - (b)2,678,416$ 4,136,154$ 2,662,642$ 1,790,686$ 2,134,279$
Plan fiduciary net position as a percentage
of the total pension liability 86.25%81.07%88.22%92.73%92.14%
Covered employee 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/Benefits
For the 2014 fiscal year the investment rate of return changed.
For the 2016 fiscal year the salary scale, normal retirement rates, the investment rate of return, discount rate,
withdrawal and mortality rates, and the actuarial cost method all changed.
For the 2017 fiscal year the mortality rates and the investment rate of return changed.
For the 2018 fiscal year the the investment rate of return changed.
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, 2020
Fire and Police Retirement Fund
82
2019 2020
2020 2021
1,031,048$ 1,102,333$
2,236,125 2,423,113
(600,965)
1,660,762
(138,741) 319,250
205,896 (981,457)
6,698 3,498
(793,277) (799,808)
3,607,546 2,066,929
27,159,019 30,766,565
30,766,565$ 32,833,494$
918,263$ 863,762$
328,826 339,482
239,271 329,454
6,698 3,498
787,045 1,228,865
(793,277) (799,809)
(83,413) (85,101)
1,403,413 1,880,151
25,024,740 26,428,153
26,428,153$ 28,308,304$
4,338,412$ 4,525,190$
85.90%86.22%
5,451,987$ 5,134,942$
79.57%88.13%
Changes of Assumptions/Benefits
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%.
For the 2020 fiscal year the mortality rates changed.
83
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%
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%
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%
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, 2020
Last Ten Fiscal Years
84
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, 2018 October 1, 2018
Actuarial Cost Method Frozen Entry-Age Entry Age Normal
Amortization Method Level Dollar, closed Level Percentage of Compensation
Remaining Amortization Period 28 years 20 years
Asset Valuation Method Five year smoothed market Five year smoothed market
Inflation 2.75%2.50%
Salary increases Service based Service based
Between 4% and 10%Between 4.5% and 10%
Cost of living adjustments 2.5% for those retired before 2.50%
2/1/82 or who contribute
an extra 2%.
Investment Rate of Return 6.75%7.70%
Mortality Female: RP2000, 100%
Annuitant White Collar,
Scale BB Male: RP2000,
50% Annuitant White
Collar/50% Annuitant Blue
Collar, Scale BB
Female: RP2000, 100%
Annuitant White Collar, Scale
BB Male: RP2000, 10%
Annuitant White Collar/90%
Annuitant Blue Collar, Scale BB
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Schedule of Contributions
September 30, 2020
85
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, 2020
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes 20,784,521$ 20,784,521$ 21,127,770$ 343,249$
Licenses and permits 1,110,200 1,110,200 1,320,361 210,161
Intergovernmental 1,507,239 1,507,239 2,057,272 550,033
Charges for services 2,510,312 2,510,312 2,169,814 (340,498)
Fines and forfeitures 89,675 89,675 197,343 107,668
Investment 95,530 95,530 490,498 394,968
Miscellaneous 26,500 26,500 160,147 133,647
Total revenues 26,123,977 26,123,977 27,523,205 1,399,228
Expenditures
Current
General government 3,262,117 3,272,106 3,265,210 6,896
Public safety 10,290,842 10,298,842 10,079,474 219,368
Public works 5,540,658 5,671,713 5,300,077 371,636
Community development and planning 1,769,446 1,945,751 1,382,443 563,308
Leisure services 3,058,612 3,081,878 2,305,309 776,569
Other government 231,795 4,470 4,470
Capital outlay 1,555,989 1,525,216 30,773
Debt service
Principal payments 934,496 934,496 934,496
Interest paid on debt 618,861 618,861 502,193 116,668
Total expenditures 25,706,827 27,384,106 25,294,418 2,089,688
Excess of revenues over
expenditures 417,150 (1,260,129) 2,228,787 3,488,916
Other financing sources (uses)
Appropriated fund balance 565,578 (565,578)
Capital lease proceeds 1,339,026 1,009,529 (329,497)
Transfer out (417,150) (644,475) (644,475)
Total other financing uses (417,150) 1,260,129 365,054 (895,075)
Net change in fund balances $ $ 2,593,841 2,593,841$
Fund Balances
Beginning of year 11,610,817
End of year 14,204,658$
86
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Notes to the Budgetary
Required Supplementary Information (RSI)
General Fund
Note 1 - Basis of Accounting
Generally accepted accounting principles (GAAP) serve as the budgetary basis of accounting.
Note 2 - Legal Level of Control
The legel level of budgetary control is at the fund level.
September 30, 2020
87
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, 2020
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
Village Council
Personnel services 50,448$ 50,448$ 50,434$ 14$ 0.03
Operating expenses 81,150 83,400 65,300 18,100 21.70
Total Village Council 131,598 133,848 115,734 18,114 13.53
Village Manager
Personnel services 613,808 613,808 644,802 (30,994) -5.05
Operating expenses 54,400 54,400 50,218 4,182 7.69
Total Village Manager 668,208 668,208 695,020 (26,812) -4.01
Procurement and Purchasing
Personnel services 10,392 10,392 17,589 (7,197) -69.26
Total Procurement and Purchasing 10,392 10,392 17,589 (7,197) -69.26
Village Finance
Personnel services 622,266 622,266 641,608 (19,342) -3.11
Operating expenses 52,720 52,720 53,060 (340) -0.64
Total Village Finance 674,986 674,986 694,668 (19,682) -2.92
Village Attorney
Operating expenses 160,000 160,000 197,516 (37,516) -23.45
Village Clerk
Personnel services 281,673 281,673 261,031 20,642 7.33
Operating expenses 37,902 37,902 15,083 22,819 60.21
Total Village Clerk 319,575 319,575 276,114 43,461 13.60
Information Technology
Personnel services 372,728 372,728 371,582 1,146 0.31
Operating expenses 107,225 110,296 106,789 3,507 3.18
Total Information Technology 479,953 483,024 478,371 4,653 0.96
Human Resources
Personnel services 333,400 333,400 311,325 22,075 6.62
Operating expenses 100,225 104,893 78,902 25,991 24.78
Total Human Resources 433,625 438,293 390,227 48,066 10.97
Police
Personnel services 5,389,019 5,389,019 5,548,936 (159,917) -2.97
Operating expenses 1,067,612 1,067,612 960,962 106,650 9.99
Total Police 6,456,631 6,456,631 6,509,898 (53,267) -0.82
Fire Rescue
Personnel services 3,440,839 3,440,839 3,200,004 240,835 7.00
Operating expenses 312,105 320,105 275,231 44,874 14.02
Total Fire Rescue 3,752,944 3,760,944 3,475,235 285,709 7.60
(Continued)
88
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
(Continued)
Public Works Administration
Personnel services 350,219$ 350,219$ 350,071$ 148$ 0.04
Operating expenses 89,850 119,490 112,989 6,501 5.44
Total Public Works 440,069 469,709 463,060 6,649 1.42
Sanitation
Personnel services 1,534,546 1,534,546 1,316,590 217,956 14.20
Operating expenses 244,150 244,150 253,709 (9,559) -3.92
Total Sanitation 1,778,696 1,778,696 1,570,299 208,397 11.72
Facility Services
Personnel services 362,577 362,577 340,272 22,305 6.15
Operating expenses 610,825 618,880 477,266 141,614 22.88
Total Facility Services 973,402 981,457 817,538 163,919 16.70
Street Maintenance
Personnel services 571,667 571,667 477,330 94,337 16.50
Operating expenses 1,232,450 1,321,424 1,269,217 52,207 3.95
Total Street Maintenance 1,804,117 1,893,091 1,746,547 146,544 7.74
Vehicle Maintenance
Personnel services 300,424 300,424 276,477 23,947 7.97
Operating expenses 243,950 243,950 303,607 (59,657) -24.45
Total Vehicle Maintenance 544,374 544,374 580,084 (35,710) -6.56
Planning and Engineering
Personnel services 342,532 342,532 295,211 47,321 13.82
Operating expenses 156,400 263,613 135,607 128,006 48.56
Total Planning and Engineering 498,932 606,145 430,818 175,327 28.92
Building
Personnel services 674,994 674,994 477,670 197,324 29.23
Operating expenses 353,150 422,242 292,387 129,855 30.75
Total Building 1,028,144 1,097,236 770,057 327,179 29.82
Code Enforcement
Personnel services 219,270 219,270 167,088 52,182 23.80
Operating expenses 27,600 27,600 17,355 10,245 37.12
Total Code Enforcement 246,870 246,870 184,443 62,427 25.29
Recreation
Personnel services 604,062 604,062 472,848 131,214 21.72
Operating expenses 474,000 474,000 300,803 173,197 36.54
Total Leisure Services-Recreation 1,078,062 1,078,062 773,651 304,411 28.24
(Continued)
89
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Departmental Expenditures - Budget and Actual
General Fund
For the Year Ended September 30, 2020
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative)Variance
(Continued)
Library
Personnel services 657,657$ 657,657$ 582,977$ 74,680$ 11.36
Operating expenses 179,158 179,158 171,432 7,726 4.31
Total Library 836,815 836,815 754,409 82,406 9.85
Tennis
Personnel services 555,834 555,834 381,685 174,149 31.33
Operating expenses 170,700 183,966 129,974 53,992 29.35
Total Tennis 726,534 739,800 511,659 228,141 30.84
Pool
Personnel services 189,566 189,566 131,542 58,024 30.61
Operating expenses 134,635 134,635 116,608 18,027 13.39
Total Pool 324,201 324,201 248,150 76,051 23.46
Special Events
Operating expenses 93,000 103,000 17,440 85,560 83.07
Total Special Events 93,000 103,000 17,440 85,560 83.07
Debt Service 1,553,357 1,553,357 1,436,689 116,668 7.51
Reserves and contingencies
Operating expenses 4,386 122,549 (118,163) -2694.09
Contingencies 231,795 4,470 4,470 100.00
231,795 8,856 122,549 (113,693) (1,283.80)
Non-Departmental
Operating expenses 460,547 460,547 491,437 (30,890) -6.71
460,547 460,547 491,437 (30,890) -6.71
Capital Outlay
Police 22,778 (22,778)
Facility Services 39,173 (39,173)
Street Maintenance 9,995 (9,995)
Sanitation 216,963 216,963
Capital leases 1,339,026 1,236,307 102,719 7.67
Total Capital Outlay 1,555,989 1,525,216 30,773 1.98
Total expenditures 25,706,827$ 27,384,106$ 25,294,418$ 2,089,688$ 7.63%
90
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Public Safety Fund
Northlake Boulevard Fund
Recreation Fund
On-Behalf Pension Contributions
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Balance Sheet
Nonmajor Governmental Funds
Special Revenue Funds
Public Northlake On-Behalf Total Nonmajor
Safety Boulevard Pension Governmental
Fund Fund Recreation Contributions Funds
Assets
Cash and cash equivalents $ 1,987$ 260,291$ $ 262,278$
Due from other governments 21,605 21,605
Total assets 21,605$ 1,987$ 260,291$ $ 283,883$
Liabilities
Due to other funds 20,085$ $ $ $ 20,085$
Total liabilities 20,085 20,085
Fund balances
Assigned 1,520 1,987 260,291 263,798
Total fund balances 1,520 1,987 260,291 263,798
Total liabilities, deferred inflows of
resources, and fund balances 21,605$ 1,987$ 260,291$ $ 283,883$
September 30, 2020
91
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, 2020
Special Revenue Funds
Public Northlake On-Behalf Total Nonmajor
Safety Boulevard Pension Governmental
Fund Fund Recreation Contributions Funds
Revenues
Intergovernmental 21,605$ $ 519,019$ 339,482$ 880,106$
Total revenues 21,605 519,019 339,482 880,106
Expenditures
Current
Public safety 339,482 339,482
Capital outlay 21,605 37,129 58,734
Total expenditures 21,605 37,129 339,482 398,216
Excess (deficiency) of revenues over
(under) expenditures 481,890 481,890
Other financing sources (uses)
Transfers in 200,000 200,000
Total other financing sources (uses) 200,000 200,000
Net changes in fund balances 681,890 681,890
Fund balances - Beginning of year 1,520 1,987 (421,599) (418,092)
Fund balances - End of year 1,520$ 1,987$ 260,291$ $ 263,798$
92
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 367,637$ 333,214$ 700,851$
Investments:
Domestic common equity securities 14,391,953 14,391,953
International common equity securities 2,890,510 2,890,510
U.S. Government and agencies 3,060,403 3,060,403
Municipal bonds 446,727 446,727
Domestic corporate bonds 2,888,137 2,888,137
International corporate bonds 752,209 752,209
Fixed income exchange traded funds 3,898,565 3,898,565
Equity exchange traded funds 1,273,443 1,273,443
Fixed income mutual funds 2,470,142 2,470,142
Domestic equity mutual funds 8,404,532 8,404,532
International equity mutual funds 1,631,353 1,631,353
Real estate investment fund 2,718,753 2,718,753
Money market mutual funds 551,108 551,108
Accrued interest and dividends 7 43,609 43,616
Accounts receivable, broker-dealers 1,101,383 1,101,383
Prepaids 4,282 1,780 6,062
Total assets 18,049,961 29,179,786 47,229,747
Liabilities
Accounts payable 16,576 34,809 51,385
Accounts payable, broker-dealers 43,306 836,673 879,979
Total liabilities 59,882 871,482 931,364
Net Position restricted for pensions 17,990,079$ 28,308,304$ 46,298,383$
September 30, 2020
93
Fire and Total
General Police Employee
Employees Officers Retirement
Pension Pension Funds
Additions
Contributions
Employer 232,738$ 863,762$ 1,096,500$
Plan members 85,829 318,461 404,290
DROP contributions 14,491 14,491
State on-behalf payments 339,482 339,482
Total contributions 318,567 1,536,196 1,854,763
Investment earnings
Dividends and interest 364,982 695,266 1,060,248
Net increase in fair value of investments 1,183,315 696,323 1,879,638
Total investment earnings 1,548,297 1,391,589 2,939,886
Less: investment expenses 51,075 162,724 213,799
Total investment earnings 1,497,222 1,228,865 2,726,087
Total additions 1,815,789 2,765,061 4,580,850
Deductions
Administration 60,096 85,101 145,197
Refund of member contributions 13,312 8,047 21,359
Benefits 722,789 791,762 1,514,551
Total deductions 796,197 884,910 1,681,107
Change in net position 1,019,592 1,880,151 2,899,743
Net position - beginning 16,970,487 26,428,153 43,398,640
Net position - ending 17,990,079$ 28,308,304$ 46,298,383$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Pension Trust Funds
Combining Statement of Changes in Fiduciary Net Position
For the Year Ended September 30, 2020
94
AGENCY FUNDS
Manatee Protection Agency
Northlake Boulevard Task Force
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Combining Statement of Agency Net Position
Manatee Northlake Total
Protection Boulevard Agency
Agency Task Force Funds
Assets
Cash and cash equivalents 321,053 68,257 389,310$
Liabilities
Due to others 321,053$ 68,257$ 389,310$
September 30, 2020
95
Combining Schedule of Changes in Agency Net Position
October 1, 2019 Additions Deductions September 30, 2020
Manatee Protection Agency
Assets
Cash and cash equivalents 314,619$ 6,434$ $ 321,053$
Liabilities
Due to others 314,619$ 6,434$ $ 321,053$
Northlake Boulevard Task Force
Assets
Cash and cash equivalents 66,889$ 1,368$ $ 68,257$
Liabilities
Due to others 66,889$ 1,368$ $ 68,257$
Total All Agency Funds
Assets
Cash and cash equivalents 381,508$ 7,802$ $ 389,310$
Liabilities
Due to others 381,508$ 7,802$ $ 389,310$
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
For the Year Ended September 30, 2020
96
PROPRIETARY FUND
(ENTERPRISE FUND)
Country Club Fund
THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Schedule of Revenues and Departmental Expenses - Budget and Actual
Country Club Fund - Budgetary Basis
For the Year Ended September 30, 2020
Variance with
Final Budget
Original Final Positive Percent
Budget Budget Actual (Negative) Variance
Revenue
Greens fee/cart rentals/membership fees 2,610,854$ 2,610,854$ 3,014,821$ 403,967$ 15.47
Golf shop revenues 406,000 406,000 325,038 (80,962) -19.94
Driving range revenues 360,000 360,000 314,177 (45,823) -12.73
Restaurant revenues 329,500 329,500 79,638 (249,862)
Proceeds from sale of assets 1,458 1,458
Miscellaneous 16,000 16,000 34,775 18,775 117.34
Appropriated net position 261,234 262,834 (262,834) -100.00
Total revenues 3,983,588 3,985,188 3,769,907 (215,281)-5.40
Golf Maintenance
Operating expenses 1,430,000 1,431,600 1,485,867 (54,267) -3.79
Capital outlay 21,819 (21,819)
Total Golf Maintenance 1,430,000 1,431,600 1,507,686 (76,086) -5.31
Golf Pro Shop and Range
Personnel services 715,260 715,260 697,396 17,864 2.50
Operating expenses 600,925 600,925 629,159 (28,234) -4.70
Capital outlay 36,661 (36,661)
Total Golf Pro Shop and Range 1,316,185 1,316,185 1,363,216 (47,031) -3.57
Food and Beverage
Operating expenses 50,000 50,000 31,318 18,682 37.36
Total Food and Beverage 50,000 50,000 31,318 18,682 37.36
Administration
Personnel services 212,601 212,601 226,378 (13,777) -6.48
Operating expenses 13,700 13,700 21,517 (7,817) -57.06
Total Administration 226,301 226,301 247,895 (21,594) -9.54
Clubhouse and Grounds
Personnel services 78,358 78,358 54,062 24,296 31.01
Operating expenses 392,500 392,500 326,297 66,203 16.87
Total Clubhouse and Grounds 470,858 470,858 380,359 90,499 19.22
Insurance and General Liability
Operating expenses 46,555 46,555 28,139 18,416 39.56
Reserves
Operating 10,000 10,000 4,044 5,956 59.56
Total Reserves 10,000 10,000 4,044 5,956 59.56
Debt service
Debt service 433,689 433,689 433,689 0.00
Total expenses on the budgetary basis 3,983,588 3,985,188 3,996,346 (11,158) (0.28)
Revenues under expenses $ $ (226,439)$ (226,439)$
Adjustments to reconcile to the GAAP Basis
Total expenses on the budgetary basis 3,996,346$
Pension and OPEB adjustments 704
Less: capital outlay costs capitalized (58,480)
Less: debt service (433,689)
Add: depreciation expense 639,527
Total operating expenses 4,144,408$
97
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 98
Changes in Net Position 99
Fund Balances, Governmental Funds 101
Changes in Fund Balances, Governmental Fund 102
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 104
Property Tax Rates - Direct and Overlapping Governments 105
Principal Property Taxpayers 106
Property Tax Levies and Collections 107
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 108
Direct and Overlapping Governmental Activities Debt 109
Pledged-Revenue Coverage 110
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 111
Principal Employers 112
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 113
Operating Indicators by Function/Program 114
Capital Asset Statistics by Function/Program 115
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
STATISTICAL SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
2011 2012 2013 2014 2015 (1)
Governmental Activities:
Net investment in capital assets 17,237,355$ 16,109,707$ 15,431,966$ 14,966,927$ 14,711,016$
Restricted 548,489 658,194 317,190 180,755 177,431
Unrestricted 11,775,621 11,846,141 11,973,715 11,314,096 6,168,366
Total governmental activities net position 29,561,465 28,614,042 27,722,871 26,461,778 21,056,813
Business-Type Activities:
Net investment in capital assets 2,200,927 2,082,668 1,998,974 1,907,746 1,833,975
Unrestricted 385,623 557,954 668,434 514,167 544,523
Total business-type activities net position 2,586,550 2,640,622 2,667,408 2,421,913 2,378,498
Primary government:
Net investment in capital assets 19,438,282 18,192,375 17,430,940 16,874,673 16,544,991
Restricted 548,489 658,194 317,190 180,755 177,431
Unrestricted 12,161,244 12,404,095 12,642,149 11,828,263 6,712,889
Total primary government net position 32,148,015$ 31,254,664$ 30,390,279$ 28,883,691$ 23,435,311$
2016 2017 2018 2019 2020
Governmental Activities:
Net investment in capital assets 14,102,547$ 13,484,731$ 15,429,484$ 18,548,594$ 22,423,120$
Restricted 398,519 992,538 484,568 525,536 986,489
Unrestricted 6,677,850 6,536,225 6,658,744 7,769,584 6,689,693
Total governmental activities net position 21,178,916 21,013,494 22,572,796 26,843,714 30,099,302
Business-Type Activities:
Net investment in capital assets 1,880,421 1,991,168 3,056,715 3,422,142 2,947,241
Unrestricted 418,726 361,461 (1,324,978) (3,162,414) (3,161,738)
Total business-type activities net position 2,299,147 2,352,629 1,731,737 259,728 (214,497)
Primary government:
Net investment in capital assets 15,982,968 15,475,899 18,486,199 21,970,736 25,370,361
Restricted 398,519 992,538 484,568 525,536 986,489
Unrestricted 7,096,576 6,897,686 5,333,766 4,607,170 3,527,955
Total primary government net position 23,478,063$ 23,366,123$ 24,304,533$ 27,103,442$ 29,884,805$
(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
98
VILLAGE OF NORTH PALM BEACH
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING) Unaudited
Fiscal Year
2011 2012 2013 2014 2015
Expenses
Governmental activities:
General government 2,403,681$ 2,520,815$ 2,489,488$ 2,696,298$ 3,028,716$
Public safety 7,232,748 7,892,561 8,282,062 9,259,442 9,311,441
Public works 4,733,913 4,652,620 4,482,973 4,485,246 4,963,704
Community development and planning 811,177 884,773 966,245 1,046,299 1,308,924
Leisure services 2,749,065 2,873,496 2,974,290 3,114,213 2,973,687
Interest on long-term debt
Total governmental activities expenses 17,930,584 18,824,265 19,195,058 20,601,498 21,586,472
Business-type activities:
Country club 3,691,528 3,536,139 3,629,120 3,902,131 3,842,660
Total business-type activities 3,691,528 3,536,139 3,629,120 3,902,131 3,842,660
Total primary government expenses 21,622,112$ 22,360,404$ 22,824,178$ 24,503,629$ 25,429,132$
Program Revenues
Governmental activities:
Charges for services:
General government 130,886$ 135,372$ 107,976$ 110,694$ 131,445$
Public safety 420,653 440,568 522,121 592,644 537,064
Public works 400,662 386,974 403,447 402,814 514,354
Community development and planning 861,394 816,673 993,059 1,621,471 1,163,875
Leisure services 1,043,459 1,018,883 1,087,182 1,096,021 1,006,382
Other government
Operating grants and contributions 126,568 149,573 91,901 90,520 380,567
Capital grants and contributions 5,169 5,686 233,949 16,098 26,548
Total governmental activities program revenues 2,988,791 2,953,729 3,439,635 3,930,262 3,760,235
Business-type activities:
Charges for services:
Country club 3,571,199 3,582,760 3,577,446 3,645,706 3,788,852
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues 3,571,199 3,582,760 3,577,446 3,645,706 3,788,852
Total primary government program revenues 6,559,990$ 6,536,489$ 7,017,081$ 7,575,968$ 7,549,087$
Net (Expense)/Revenue
Governmental activities (14,941,793)$ (15,870,536)$ (15,755,423)$ (16,671,236)$ (17,826,237)$
Business-type activities (120,329) 46,621 (51,674) (256,425) (53,808)
Total primary government net expense (15,062,122)$ (15,823,915)$ (15,807,097)$ (16,927,661)$ (17,880,045)$
General revenues and other changes in net position:
Governmental activities:
Taxes:
Property taxes 10,441,869$ 10,011,748$ 9,981,391$ 10,154,695$ 11,364,888$
Local option gas taxes 259,794 263,369 261,852 266,147 282,549
Local option infrastruture surtax
Utility service taxes 2,198,148 2,164,920 2,197,760 2,277,366 2,267,118
Franchise taxes 1,191,155 1,178,598 1,160,780 1,232,669 1,253,139
Sales and use taxes 1,140,744 1,138,097 1,187,221 1,260,617 1,332,209
Unrestricted grants and contributions
Investment earnings 97,743 90,968 37,029 16,653 108,794
Miscellaneous 30,622 75,413 38,219 146,360 57,137
Contributions for Support Our Troops
Gain on disposl of equipment 55,636 30,457
Transfers
Total governmental activities 15,360,075 14,923,113 14,864,252 15,410,143 16,696,291
Business-type activities:
Investment income 8,493 7,451 8,555 10,930 10,393
Miscellaneous 69,905
Transfers
Total business-type activities 8,493 7,451 78,460 10,930 10,393
Total primary government 15,368,568$ 14,930,564$ 14,942,712$ 15,421,073$ 16,706,684$
Change in net position
Governmental activities 418,282$ (947,423)$ (891,171)$ (1,261,093)$ (1,129,946)$
Business-type activities (111,836) 54,072 26,786 (245,495) (43,415)
Total primary government 306,446$ (893,351)$ (864,385)$ (1,506,588)$ (1,173,361)$
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
99
2016 2017 2018 2019 2020
2,985,185$ 3,205,903$ 3,213,886$ 3,312,770$ 3,541,302$
9,308,778 9,905,815 10,045,757 10,505,278 12,103,224
5,106,651 5,707,570 5,911,225 5,603,991 5,633,427
1,382,121 1,255,115 1,458,523 1,685,525 1,398,876
2,904,715 3,114,720 3,058,410 3,037,981 2,795,698
266,892 499,929 489,988 520,755
21,687,450 23,456,015 24,187,730 24,635,533 25,993,282
3,845,547 2,903,224 2,912,523 2,879,376 4,242,674
3,845,547 2,903,224 2,912,523 2,879,376 4,242,674
25,532,997$ 26,359,239$ 27,100,253$ 27,514,909$ 30,235,956$
128,459$ 134,249$ 140,998$ 147,104$ 152,779$
628,529 557,265 548,019 687,905 488,393
565,011 547,596 510,732 538,459 511,916
1,213,032 1,222,464 1,495,298 1,799,878 1,723,949
994,918 1,022,175 876,174 899,164 853,581
365,823 377,339 422,255 395,376 717,982
229,161 102,187 9,591 808,193 850,187
4,124,933 3,963,275 4,003,067 5,276,079 5,298,787
3,720,573 2,946,432 2,946,432 1,406,563 3,768,449
3,720,573 2,946,432 2,254,638 1,406,563 3,768,449
7,845,506$ 6,909,707$ 6,257,705$ 6,682,642$ 9,067,236$
(17,562,517)$ (19,492,740)$ (20,184,663)$ (19,359,454)$ (20,694,495)$
(124,974) 43,208 (657,885) (1,472,813) (474,225)
(17,687,491)$ (19,449,532)$ (20,842,548)$ (20,832,267)$ (21,168,720)$
12,253,917$ 13,091,985$ 15,003,141$ 16,185,283$ 16,991,314$
288,150 305,700 302,208 307,130 273,428
552,600 879,565 922,937 869,852
2,303,294 2,413,679 2,511,877 2,521,954 2,558,092
1,263,812 1,306,997 1,294,280 1,352,464 1,304,936
1,363,954 1,371,890 1,413,335 1,448,423 1,345,508
103,353 126,926 376,227 811,915 502,335
60,026 150,698 268,471 80,266 104,618
48,114 6,843 74,449
17,684,620 19,327,318 22,123,553 23,630,372 23,950,083
9,230 10,274 13,874 804
36,393
45,623 10,274 13,874 804
17,730,243$ 19,337,592$ 22,137,427$ 23,631,176$ 23,950,083$
122,103$ (165,422)$ 1,938,890$ 4,270,918$ 3,255,588$
(79,351) 53,482 (644,011) (1,472,009) (474,225)
42,752$ (111,940)$ 1,294,879$ 2,798,909$ 2,781,363$
100
THIS PAGE INTENTIONALLY LEFT BLANK
2011 2012 2013 2014 2015
General Fund
Nonspendable 276,924$ 166,839$ 293,674$ 244,438$ 155,594$
Restricted 548,489 658,194 317,190 135,255 131,931
Committed 442,833
Assigned 186,594 127,574 200,016 216,808 319,888
Unassigned 10,688,660 11,244,977 11,451,668 12,391,362 10,802,623
Total general fund 11,700,667$ 12,197,584$ 12,705,381$ 12,987,863$ 11,410,036$
All other Governmental Funds
Restricted 45,500$ 45,500$
Assigned
Special revenue funds 47,107$ 47,652$ 47,652$ 325,152 318,526
Capital projects funds 1,491,574 2,129,831 1,799,617 841,850 1,448,620
Unassigned
Total all other governmental funds 1,538,681$ 2,177,483$ 1,847,269$ 1,212,502$ 1,812,646$
2016 2017 2018 2019 2020
General Fund
Nonspendable 358,606$ 183,220$ 1,240,793$ 2,789,824$ 2,325,778$
Restricted 353,019 781,756 47,338 61,227 79,730
Committed
Assigned 208,204 316,266 407,862 582,008 176,865
Unassigned 10,724,049 11,811,468 7,547,415 8,177,758 11,622,285
Total general fund 11,643,878$ 13,092,710$ 9,243,408$ 11,610,817$ 14,204,658$
All other Governmental Funds
Restricted 45,500$ 13,988,744$ 11,826,016$ 464,309$ 906,759$
Assigned
Special revenue funds 508,481 388,981 3,506 3,507 263,798
Capital projects funds 1,604,073 1,670,196 5,398,245 3,727,482 1,151,011
Unassigned (114,279) (421,599) -
Total all other governmental funds 2,158,054$ 16,047,921$ 17,113,488$ 3,773,699$ 2,321,568$
Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.
VILLAGE OF NORTH PALM BEACH
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
101
VILLAGE OF NORTH PALM BEACH
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING) Unaudited
Fiscal Year
2011 2012 2013 2014 2015
Revenues:
Taxes 14,090,966$ 13,618,635$ 13,601,783$ 13,930,877$ 15,167,694$
Licenses and Permits 959,098 810,390 803,337 1,344,653 947,158
Intergovernmental 1,557,377 1,591,678 1,817,603 1,688,608 1,758,246
Charges for services 1,934,424 1,966,179 2,141,437 2,320,305 2,231,673
Fines and forfeitures 164,366 140,610 131,524 117,869 128,235
Investment earnings 97,743 90,968 37,029 16,653 108,794
Miscellaneous 59,462 130,293 207,076 258,086 122,107
Total revenues 18,863,436 18,348,753 18,739,789 19,677,051 20,463,907
Expenditures:
General government 2,402,241 2,328,568 2,346,281 2,541,546 2,904,553
Public safety 7,053,282 7,583,018 7,947,221 8,947,627 8,966,077
Public works 4,044,642 3,886,698 3,733,977 3,773,689 4,255,636
Community development 790,937 844,748 933,117 1,004,642 1,270,399
Leisure services 2,295,959 2,374,748 2,491,559 2,644,598 2,514,495
Other government
Capital outlay 682,057 495,254 1,110,051 1,117,234 1,530,430
Debt service
Principal payments
Interest paid on debt
Total expenditures 17,269,118 17,513,034 18,562,206 20,029,336 21,441,590
Excess of revenues over (under) expenditures 1,594,318 835,719 177,583 (352,285) (977,683)
Other financing sources (uses)
Transfers in 1,334,934 500,000 265,000 323,000 2,091,246
Transfers out (1,334,934) (500,000) (265,000) (323,000) (2,091,246)
Capital lease
Proceeds from debt issuance
Miscellaneous
Total other financing sources (uses)
Net change in fund balances 1,594,318$ 835,719$ 177,583$ (352,285)$ (977,683)$
Debt service as a percentage of noncapital
expenditures -----
102
2016 2017 2018 2019 2020
16,109,173$ 17,118,361$ 19,111,506$ 20,366,831$ 21,127,770$
1,235,782 997,656 1,222,594 1,522,913 1,320,361
1,765,836 2,417,809 2,679,389 2,910,395 3,857,230
2,364,013 2,321,298 2,200,860 2,399,174 2,169,814
91,534 124,395 100,140 100,188 197,343
103,353 126,926 376,227 811,915 502,335
191,250 157,063 412,513 510,688 160,147
21,860,941 23,263,508 26,103,229 28,622,104 29,335,000
2,876,521 2,970,223 3,059,623 3,275,570 3,265,210
9,129,947 9,166,060 9,669,361 10,350,598 10,418,956
4,266,749 4,882,159 5,313,834 5,255,606 5,300,077
1,351,061 1,190,759 1,429,764 1,532,428 1,382,443
2,448,164 2,591,866 2,613,664 2,664,689 2,305,309
1,209,249 2,123,742 5,507,617 15,487,329 5,094,135
680,000 882,777 934,496
613,101 488,786 502,193
21,281,691 22,924,809 28,886,964 39,937,783 29,202,819
579,250 338,699 (2,783,735) (11,315,679) 132,181
1,503,750 1,503,750 4,963,307 407,000 844,475
(1,503,750) (1,503,750) (4,963,307) (407,000) (844,475)
15,000,000 343,299 1,009,529
15,000,000 343,299 1,009,529
579,250$ 15,338,699$ (2,783,735)$ (10,972,380)$ 1,141,710$
--5.53%5.70%5.90%
103
Fiscal Year
Ended
Sept 30,
Tax Roll
Year Residential Property
Commercial
Property
Personal
Property
Total Net Market -
Assessed Value
Total Direct
Tax Rate
2011 2010 1,295,097,223$ 210,844,220$ 38,261,607$ 1,544,203,050$ 6.9723
2012 2011 1,265,549,795 189,284,601 33,303,512 1,488,137,908 6.9723
2013 2012 1,254,302,880 195,770,816 30,033,151 1,480,106,847 6.9723
2014 2013 1,287,481,785 203,512,929 33,792,851 1,524,787,565 6.8731
2015 2014 1,355,969,888 214,484,701 34,077,944 1,604,532,533 7.3300
2016 2015 1,453,735,176 232,020,936 36,939,006 1,722,695,118 7.3300
2017 2016 1,545,192,840 259,097,141 40,181,846 1,844,471,827 7.3300
2018 2017 1,804,338,668 279,488,569 35,855,827 2,119,683,064 7.3300
2019 2018 1,897,471,175 297,293,001 38,440,924 2,233,205,100 7.5000
2020 2019 1,991,785,138 315,226,821 37,569,787 2,344,581,746 7.5000
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
104
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
2011 2010 6.9723 8.1540 4.9960 2.5549 22.6772
2012 2011 6.9723 8.1800 4.9925 2.3433 22.4881
2013 2012 6.9723 7.7780 4.9902 2.3154 22.0559
2014 2013 6.8731 7.5860 4.9852 2.2280 21.6723
2015 2014 7.3300 7.5940 4.9729 2.1732 22.0701
2016 2015 7.3300 7.5120 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
Note:All millage rates are based on $1 for every $1,000 of assessed value.
Source:North Palm Beach: Notice of Ad Valorem Taxes and Non-Ad Valorem Assessments
(1)Overlapping rates are those of local and county governments that apply to property owners within the Village
of North Palm Beach. Not all overlapping rates apply to all Village of North Palm Beach property owners
(i.e. The rates for special districts apply only to the proportion of the government's property owners whose
property is located within the geographic boundaries of the special district.)
VILLAGE OF NORTH PALM BEACH
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Overlapping Rates (1)
105
Percentage Percentage
of Total of Total
Village Net Village Net
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayers Value Rank Value Value Rank Value
Olen Residential Realty 35,129,954$ 1 1.50%18,000,000$ 1 0.97%
SHM Old Port Cove LLC 30,686,720 2 1.31%
Sanctuary Bay Trust Corporation 27,815,480 3 1.19%14,000,300 3 0.76%
Florida Power & Light 21,550,096 4 0.92%
JB Shoppes LLLP 17,514,224 5 0.75%
Pearland RJR LLC 17,159,771 6 0.73%
New Country Motor Cars 15,464,526 7 0.66%
SHM North Palm Beach LLC 12,237,864 8 0.52%
Palm Beach Autoplex LLC 9,810,679 9 0.42%
Bozzuto Michael A.8,710,595 10 0.37%
Domani Development 9,213,927 6 0.50%
Crystal Tree NPB 17,030,531 2 0.92%
Greater Fla Inv Co& 12,911,802 4 0.70%
CF02 Palm Beach III LP 11,000,000 5 0.60%
Village Shoppers at US 1LLC 7,896,575 7 0.43%
Old Port Cove Holding, INC 7,706,522 8 0.42%
Riverside National Bank 6,044,474 9 0.33%
701 us One Inc 5,839,803 10 0.32%
Total 196,079,909$ 8.37%109,643,934$ 5.95%
*2010 information was not available
Source: Palm Beach Country Appraiser
VILLAGE OF NORTH PALM BEACH
PRINCIPAL PROPERTY TAXPAYERS
2020 & 2009 Presented
2020 *2009
Note: Assessed values are established by the Palm Beach Property Appraiser's offices as of January 1, each year.
106
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
2011 2010 10,793,319$ 10,097,289$ 93.55%298,514$ 10,395,803$ 96.32%
2012 2011 10,424,715 9,992,145 95.85%15,616 10,007,761 96.00%
2013 2012 10,358,172 9,948,550 96.05%36,366 9,984,916 96.40%
2014 2013 10,503,598 10,097,763 96.14%57,493 10,155,256 96.68%
2015 2014 11,761,226 11,350,738 96.51%14,777 11,365,515 96.64%
2016 2015 12,627,355 12,197,736 96.60%57,133 12,254,869 97.05%
2017 2016 13,519,978 13,051,272 96.53%41,267 13,092,539 96.84%
2018 2017 15,537,277 14,999,572 96.54%3,390 15,002,962 96.56%
2019 2018 16,749,038 16,176,654 96.58%6,223 16,182,877 96.62%
2020 2019 17,584,371 16,980,948 96.57%7,965 16,988,913 96.61%
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
107
VILLAGE OF NORTH PALM BEACH
RATIOS OF OUTSTANDING DEBT BY TYPE
Business-type
Activities
Fiscal Year Percent of
Ended Loans Capital Loans Capital Median Personal Per
Sept 30,Payable Leases Payable Leases Total Income (1)Capita
2011 -$ -$ 3,844,928$ 173,084$ 4,018,012$ *0.54%*345$
2012 - - 3,608,294 106,933 3,715,227 0.50%303.51
2013 - - 3,357,875 396,055 3,753,930 0.49%305.37
2014 - - 3,096,925 274,471 3,371,396 0.46%266.62
2015 - - 2,824,987 147,767 2,972,754 0.37%234.94
2016 - - 2,684,913 - 2,684,913 0.35%212.20
2017 15,000,000 - 2,247,088 - 17,247,088 1.85%1,292.69
2018 14,320,000 - 1,939,366 - 16,259,366 1.79%1,229.26
2019 13,515,000 265,522 1,618,633 - 15,399,155 1.74%1,161.32
2020 12,680,000 1,175,555 1,284,668 - 15,140,223 1.70%1,135.63
Note:Details regarding the Village's outstanding debt may be found in the notes to the
financial statements.
*Information was not available, the prior year info was used.
(1)See the Schedule of Demographic and Economic Statistics on page 103 for personal income and population data.
Governmental Activities
LAST TEN FISCAL YEARS
108
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 49,498,000$ 1.18%584,076$
Palm Beach County School Board 6,498,000 1.11%72,128
Other debt:
Palm Beach County 676,158,000 1.18%7,978,664
Palm Beach County School Board 1,305,860,000 1.11%14,495,046
Subtotal, overlapping debt 23,129,914
Village of North Palm Beach Direct Debt 13,855,555
Total direct and overlapping debt 36,985,469$
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, 2019
Unaudited
Government Unit
109
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)
2011 3,579,692 3,049,301 530,391 394,900 1.34
2012 3,590,211 2,932,743 657,468 394,900 1.66
2013 3,586,001 2,986,080 599,921 394,900 1.52
2014 3,656,636 3,248,284 408,352 394,900 1.03
2015 3,799,245 3,226,907 572,338 394,900 1.45
2016 3,766,196 3,333,395 432,801 394,900 1.10
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
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.
110
Per Palm Beach
Median Capita County
Calendar Personal Personal Unemployment
Year Population (1) Income (1) Income (1)Rate (2)
2011 (estimate)***10.7
2012 (estimate)12,241 ***62,121 ****49,117 **5.29
2013 (estimate)12,293 ***59,778 ****42,830 **4.66
2014 (estimate)12,645 ***63,349 ****43,120 **3.92
2015 (estimate)12,653 ***61,057 ****43,120 **3.15
2016 (estimate)12,817 ***61,653 ****45,110 **2.10
2017 (estimate)13,342 ***69,718 ****46,160 **2.70
2018 (estimate)13,227 ***68,833 ****46,160 **1.79
2019 (estimate)13,260 ***66,898 ****48,240 **1.24
2020 (estimate)13,332 ***66,898 ****48,240 **1.15
Sources:Business Development Board
US Census Bureau
*2011 Demographic data is not available due to Agency Software upgrade
that is not complete
**Village of North Palm Beach Unemployment Rate for 2020 presented
***North Palm Beach Median Personal Income for 2020 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
111
702089
Percentage Percentage
of Total of Total
Employer Employees Employment Employees Employment
Palm Beach Country School Board 22,049 3.14%21,718 3.51%
State Government 9,549 1.36%7,554 1.22%
Federal Government 7,655 1.09%6,681 1.08%
Tenet Health Care Corp 6,505 0.93%5,127 0.83%
Palm Beach County Government 5,438 0.77%11,381 1.84%
NextEra Energy (Florida Power & Light) 4,807 0.68%3,658 0.59%
Hospital Corporation of America (HCA) (1)2,806 0.40%4,150 0.67%
Boca Raton Regional Hospital (2)2,800 0.40%2,100 0.34%
Florida Alantic University 2,898 0.41%2,776 0.45%
Veterans Health Administration 2,700 0.38%2,205 0.36%
The Breakers Hotel 2,300 0.33%1,800 0.29%
Bethesda Memorial Hospital 2,282 0.33%2,300 0.37%
Office Depot 2,000 0.28%2,100 0.34%
Florida Crystal Corp.2,000 0.28%1,900 0.31%
Jupiter Medical Center 1,780 0.25%1,500 0.24%
City of West Palm Beach 1,679 0.24%1,671 0.27%
City of Boca Raton 1,513 0.22%1,638 0.26%
80,761 11.49%80,259 12.97%
* Employer: Palm Beach County
Information is not available for the Village of North Palm Beach.
** Percentage of total employment is calculated using Palm Beach County's
available labor force in each of the respective years presented.
Notes:
(1) Formerly Columbia Palm Beach Health Care Systems, Inc
(2) Formerly Boca Raton Community Hospital
*** Most current data available in BDP.org
Source: Business Development Board of Palm Beach County, floridajobs.org
VILLAGE OF NORTH PALM BEACH
PRINCIPAL EMPLOYERS
2020 2010
112
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Number of Employees:
General Government
Village Manager
Full-Time 2 2 2 2 2 2 4 4 4 4
Part-Time 0 0 0 0 0 0 1 1 1 1
Information Technology
Full-Time 2 3 3 3 3 3 3 3 3 3
Part-Time 1 0 0 0 0 0 0 0 0 1
Human Resources
Full-Time 2 2 2 2 2 2 2 2 2 2
Part-Time 0 0 0 0 1 2 2 2 2 2
Village Clerk - Full-Time 3 3 3 3 3 3 3 3 3 3
Finance
Full-time 5 5 5 5 7 7 5 6 6 6
Part-Time 1 1 1 1 0 0 1 0 0 0
Public Works
Full-time 37 37 37 37 35 34 36 37 37 37
Part-Time 0 0 0 0 0 0 0 0 2 2
Police & Fire
Full-time 67 0 0 0 0 0 0 0 0 0
Part-Time 12 0 0 0 0 0 0 0 0 0
Police
Full-time 0 43 43 43 36 36 36 38 38 38
Part-Time 0 12 13 13 13 13 13 15 15 15
Fire Rescue
Full-time 0 24 24 24 24 24 24 24 24 24
Part-Time 0 0 0 0 0 0 0 0 0 0
Community Development and Planning
Full-time 9 8 8 10 11 12 13 14 15 15
Part-Time 2 2 2 1 0 0 1 1 1 0
Leisure Services
Library
Full-time 6 6 6 6 7 7 7 7 7 7
Part-Time 10 10 10 10 9 9 9 7 7 9
Recreation
Full-time 6 6 6 6 6 6 6 6 6 5
Part-Time 43 43 43 43 43 43 43 42 42 16
Pool/Tennis
Full-time 0 0 0 0 0 0 0 0 0 2
Part-Time 0 0 0 0 0 0 0 0 0 22
Other Government - Country Club
Full-time 7 5 6 8 8 8 5 5 6 7
Part-Time 64 56 54 65 65 65 27 27 27 28
279 268 268 282 275 276 241 244 248 249
* Variance exists due to the employment of seasonal and part-time employees.
Source:Village of North Palm Beach Budget Report
VILLAGE OF NORTH PALM BEACH
LAST TEN FISCAL YEARS (*)
Full-Time Equivalent Village Government Employees by Function
Total Number of Employees Budgeted FY Ending
113
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
FUNCTION/PROGRAM
PUBLIC WORKS
Sanitation (Tons of Refuse Collected)9,962 10,065 10,720 10,720 11,167 12,556 12,980 12,624 12,330 12,059
No. of collection units for solid waste (residential) 7,071 7,076 7,471 7,616 7,618 7,614 7,614 7,632 7,632 7,627
Number of vehicles maintained 98 98 111 98 98 92 85 89 88 89
Number of repair overlays completed (miles)- - - - - - - - - -
POLICE
Number of arrests by police officers 260 211 216 238 293 247 233 192 134 150
Number of traffic citations issued 2,564 2,566 1,254 2,799 3,407 2,494 1,974 2,014 1,184 853
FIRE RESCUE
EMS average response times (minutes)5.19 5.26 5.11 5.10 5.05 5.26 5.21 5.37 4.50 5.42
Number of EMS calls 1,179 1,326 1,296 1,110 1,499 1,601 1,746 1,550 1,577 1,452
COMMUNITY DEVELOPMENT & PLANNING
Bldg Dept - Number of Permits,Subpermits and certificates 1,616 1,835 2,480 2,103 3,920 4,242 4,665 2,173 2,737 4,832
Number of code enforcement violations/cases 575 817 790 887 769 680 **516/357**726/317 885 941
Number of code violations brought to board/magistrate
(Calendar Yr End)72 100 62 28 56 42 98 246 263 183***
RECREATION
Number of community events presented 38 49 37 53 57 48 40 38 24 8
Number of registrants in athletic programs 1,260 1,311 2,074 1,439 1,389 1,174 1,109 1,174 1,077 120***
LIBRARY
Library - Number of Volumes 40,658 43,340 44,966 46,546 47,339 *57,935 41,161 43,992 45,446 39,886
OTHER GOVERNMENT
Country Club
Number of Golf Members 298 283 262 250 255 265 271 178 198 278
Number of Tennis/Pool Members 173 162 190 194 193 183 183 159 182 241
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
VILLAGE OF NORTH PALM BEACH
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
114
2011 2012 2013 2014 2015 2016*2017 2018 2019 2020
Function/Program:
General Government
No. of General Government Buildings 23 23 23 23 23 23 23 23 23 23
Public Works
Square Miles 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18 5.18
Miles of Streets 36.00 36.00 36.00 36.00 36.00 32.30**32.30 32.30 32.30 32.30
Number of Street Lights (within corp surroundings)513 513 513 513 513 513 628****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 23 22 22 22 22 23 24 21 23 18
Number of Fire Captains 0 0 0 0 0 0 0 0 0 3
Police/EMS Protection:
Number of Stations 1 1 1 1 1 1 1 1 1 1
Number of Policemen & Officers 31 28 28 28 28 28 28 30 28 30
Number of Police Captains 0 2 2 2 2.5 2.5 2.5 2.5 2.5 2.5
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)40,658 43,340 44,966 46,546 47,339 48,913 33,502 36,009 37,429 33672
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
LAST TEN FISCAL YEARS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
115
OTHER REPORTS
116
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, 2020, 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 5, 2021.
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.
117
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Village of North Palm Beach,
Florida’s financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
West Palm Beach, Florida
March 5, 2021
118
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, 2020, and have issued our report thereon dated March 5, 2021.
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 5, 2021, 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. Finding 2018-1 is a comment from the prior two years that still applies.
119
Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be
disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This
information is disclosed in Note 1 to the financial statements.
Financial Condition and Management
Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply
appropriate procedures and communicate the results of our determination as to whether or not the
Village of North Palm Beach, Florida has met one or more of the conditions described in Section
218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our
audit, we determined that the Village of North Palm Beach, Florida did not meet any of the
conditions described in Section 218.503(1), Florida Statutes, during the fiscal year ended
September 30, 2020.
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 had one finding.
120
Finding 2018-1
The 2006 loan agreement with Bank of America 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. Due to the Golf Course and Country Club being closed for part of the year due to
the pandemic this requirement was not met.
Management Response
The mandated facility closures and cancellation of events due to the COVID-19 pandemic
disrupted the Country Club’s ability to deliver services and resulted in significant revenue loss in
the Country Club. Even with the closures, the Country Club had a positive cash flow from
operating activities and was able to repay some of the advances from the General Fund made in the
prior years. All required debt service payments have been paid on time for the loan.
Single Audits
The Village expended less than $750,000 of federal awards and less than $750,000 of state
financial assistance for the fiscal year ended September 30, 2020, and was not required to have a
federal single audit or a state single audit.
Response to Management Letter
The Village of North Palm Beach, Florida’s response to the finding identified in our audit is
described above. The Village of North Palm Beach, Florida’s response was not subjected to the
auditing procedures applied in the audit of the financial statements and, accordingly, we express
no opinion on it.
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 5, 2021
West Palm Beach, Florida
121
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, 2020. Management of the Village of North Palm
Beach, Florida is responsible for the Village of North Palm Beach, Florida’s compliance with the
specified requirements. Our responsibility is to express an opinion on the Village of North Palm Beach,
Florida’s compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the
examination to obtain reasonable assurance about whether the Village of North Palm Beach, Florida
complied, in all material respects, with the specified requirements referenced above. An examination
involves performing procedures to obtain evidence about whether the Village of North Palm Beach,
Florida complied with the specified requirements. The nature, timing, and extent of the procedures
selected depend on our judgement, including an assessment of the risk of material noncompliance,
whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to
provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Village of North Palm Beach, Florida’s
compliance with the specified requirements.
In our opinion, the Village of North Palm Beach, Florida complied, in all material respects, with Section
218.415, Florida Statutes for the year ended September 30, 2020.
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 5, 2021