Lake Park Town Commission, Florida Regular Commission Meeting Minutes Commission Chamber, Town Hall, 535 Park. Avenue, Lake Park, FL33403 January 15, 2025 Immediately Following the Special Call Community Redevelopment Agency (CRA) Meeting Roger Michaud Kimberly Glas Castro Michael Hensley Mary Beth Taylor Judith Thomas Richard Reade Thomas J. Baird Vivian Mendez, MMC Mayor Vice Mayor Commissioner Commissioner Commissioner Town Manager Town Attorney Town Clerk PLEASE TAKE NOTICE. AND BE. ADVISED, that ifany interested person desires to appeal any decision of the Town Commission, with respect to any matter considered at this meeting, such interested, person will need a record ofthe proceedings, andj for such purpose, may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Persons with disabilities requiring accommodations in order to participate in the meeting should contract the Town Clerk'soffice by calling 881-3311 at least 48 hours in advance to request accommodations. CALL TO ORDER/ROLL CALL 7:23 P.M. PRESENT Mayor Roger Michaud Vice-Mayor Kimberly Glas-Castro Commissioner Mary-Beth Taylor Commissioner Judith Thomas Commissioner Michael Hensley January 15, 2025 Page 1 PLEDGE OF ALLEGIANCE The Pledge was bypassed. SPECIAL PRESENTATION/REPORT: 1. Presentation by Palm Beach North Chamber ofCommerce President and ChiefExecutive Officer Noel Martinez. Mr. Noel Martinez and Ms. Kathleen Joy from the Palm Beach North Chamber of Commerce presented to the Commission (Exhibit. A) and also extended a welcome to the Mayor Michaud thanked the group for what they do and for asking for their feedback. Commissioner Hensley thanked them for all they do. Commissioner Thomas asked how they have been working with local teachers to assist with promoting students along. Ms. Joy spoke about the use of literacy kits, professional development, awards and externships. Commissioner Taylor thanked them and asked if there are volunteers involved in the program. Ms. Joy stated that literacy does allow for volunteers. Mr. Martinez spoke about the principal for a day program. Vice-Mayor Glas-Castro had new Town Manager, Richard Reade. positive comments. 2. Presentation to Town Manager Richard Reade by Sparke2lgnite Presentation was made to the Town Manager and they welcomed him to the Town. The group presented Town Manager Reade with a small painting as a gift. Town Manager Reade spoke very highly oft the group and urged everyone to visit their website to see all 3. Presentation of Annual Comprehensive Financial Report for Fiscal Year Ended Marcum LLP representative Mr. Brandon Lopez presented the report before the Town Commission (Exhibit B). Commissioner Thomas asked about a cyber-security policy. ChiefInformation Technology Officer Paul McGuiness explained what the Town has in place. Vice-Mayor Glas-Castro asked ift the goal is to present the 2024 report to the Commission in April-May oft this year. Mr. Lopez confirmed that to be correct. ofthe artwork. September 30, 2023. January 15,2025 Page 2 PUBLIC COMMENT: This time is provided for addressing items that do not appear on the Agenda. Please complete a comment card and provide it to the Town Clerk sO speakers may be announced. Please remember comments are limited to a TOTAL ofthree minutes. -Brett Vaughn provided information about an event he is organizing. -Michael O'Rourke welcomed Town Manager Reade to the Town and suggested a Town Hall meeting before the election. CONSENT AGENDA: All matters listed under this item are considered routine and action will be taken by one motion. There will be no separate discussion ofthese items unless a Commissioner or person sO requests, in which event the item will be removed from the general order of business and considered in its normal sequence on the agenda. Any person wishing to speak on an agenda item is asked to complete a public comment card located on either side oft the Chambers and given to Motion to approve the Consent Agenda made by Commissioner Thomas, Seconded by Commissioner Taylor. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner the Town Clerk. Cards must be submitted before the item is discussed. Taylor, Commissioner Thomas, Commissioner Hensley. 4. December 18, 2024 Regular Commission Meeting Minutes 5. Resolution 01-01-25 Authorizing the Mayor to Sign the 2025 Municipal Election Vote Processing Equipment Use and Election Services Agreement with the Palm Beach County Supervisor of] Election for the Municipal Election Scheduled for March 11,2025 and Selecting the County Canvassing Board to Canvass the Town's Ballots. 5. Resolution 02-01-25 Authorizing and Directing the Mayor to Extend the Non-Exclusive Franchise Agreement with Waste Management, Inc. for the Provision of Roll-Off 7. Resolution 03-01-25 Authorizing and Directing the Mayor to Enter into a Contract Agreement for the Replacement and Installation of a New Library Door with Automatic 8. Resolution 04-01-25 Authorizing and Directing the Mayor tol Execute a Special Category Grant Agreement Between the Town ofLake Park and the State of Florida, Department Container Collection Service. Operating System (RFQ 123-2024). January 15, 2025 Page 3 of State, Division of Historical Resources for the Lake Park Historic Evergreen House Preservation Improvements. QUASIJUDICIAL PUBLIC HEARING RESOLUTION): NONE PUBLIC HEARING(S)- - ORDINANCE ON FIRST READING: NONE PUBLIC HEARING(S) - ORDINANCE ON SECOND READING: NONE OLD BUSINESS: 9. Legislative Priority Discussion: Ovalabout at the Intersection of 10th Street, Prosperity Grant Writer/ChiefPublic Information Officer Merrell Angstreich explained the item (Exhibit C). The Commission asked to be provided with information to take with them up to Tallahassee. Grant Writer/ChiefPublic Information office Angstreich stated she Motion to approve made by Commissioner Hensley, Seconded by Commissioner Thomas. Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro, Commissioner Taylor, Farms Road, and Northern Drive would provide that to them. Commissioner Thomas, Commissioner Hensley. This item was pulled from the agenda. 10. Gravel Driveways Discussion (Commissioner Taylor's Request) NEW BUSINESS: 11. Guidance on the Selection ofl Nora Flooring Color for the Library. This item was pulled from the agenda. 12. Resolution 05-01-25 Authorizing and Directing The Mayor to Execute the Agreement between the Town ofLake Park and Bonner Mobile Bar Service for Sunset Celebration Beverage Service. Special Events Director Riunite Franks explained the item. January 15, 2025 Page 4 Motion to approve Resolution 05-01-25 made by Commissioner Thomas, Seconded by Voting Yea: Mayor Michaud, Vice-Mayor Glas-Castro. Commissioner Taylor was not Commissioner Hensley. on the Dias during the vote. TOWN ATTORNEY, TOWN MANAGER, COMMISSIONER COMMENTS: Town Manager Reade explained that all Town permits will now be accepted only at the Community Development Department. He thanked the Town Attorney for his assistance and also Town Attorney Baird wished everyone a Happy New Year. gave an update on upcoming events. Commissioner Taylor welcomed the Town Manager. Commissioner Hensley welcomed the Town Manager and thanked Captain Gendreau. Commissioner Thomas wished everyone a Happy New Year and welcomed the Town Manager. Vice-Mayor Glas-Castro spoke about a crosswalk on Lake Shore Drive where the crosswalk light is no longer lighting up. She also mentioned the Park Avenue building and the Resiliency Workshop on Saturday, January 25. She asked if there is a draft Ordinance for review prior to workshop. Community Development Director Nadia DiTommaso stated that their consultant is Mayor Michaud welcomed the Town Manager and thanked staff. He went to Panda's Hideout and is very excited to have them in Town. He is also looking forward to a good year. working on some draft materials before workshop. REQUEST FOR FUTURE AGENDA ITEMS: The Commission requests an appearance by the owner of 754 Park. Avenue at the next meeting. Commissioner Taylor requests a closer look at traffic and motorized scooters. ADJOURNMENT: Voting Aye: All. Meeting adjourned 8:38pm Motion to adjourn made by Commissioner Taylor, Seconded by Commission Thomas. January 15, 2025 Page 5 FUTURE MEETING DATE: Next Scheduled Regular Commission Meeting will be held on February 5, 2025. OF FLIP. SEAL - ZORIDN Mayor Ly Toggs Seal Town Clerk/Vivian Mendez,M MMC Clerk,Laura Weidgans 6 Approved on this 4 of Sbuany 2025 January 15, 2025 Page 6 Lake Park Town Commission Meeting January 15, 2025 PALM BEACH CHAMBER OF CO AWARD WINNING CHAM Palm Beach North Chamber Updates NEW Local Business Resource Center Foundation Impact at Lake Park Elementary PALM BEACH NORTH CHAMBER OF COMMERCE AWARD WINNING CHAMBER Palm Beach North Local Business Resource Center LOCAL BUSINESS RESOURCE CENTER Powered by the Palm Beach North Chamber of Commerce PALM CHAMBER BEACH OF CO AWARD WINNING CHAM NEW BUSINESS CHECKLIST Write' Your Business Plan Create Your BLAIMT Team Banker, Lawyer, Accountant, Insurance Agent, and! Mentor Determine Your Legal Structure LLC, C Corporation, S Corporation, Sole Proprietorship, Nonprofit Register Your Business Register with the State ofFlorida on Sunbiz.org. Register with your municipality or Palm Beach County. Obtain Necessary Tax Information For Federal Identification Numbers (EINs), apply through thel IRS. For State Sales Tax and State Withholding Tax, visit the Florida Department of Open al Business Bank Account and Identify Sources of Funding Sources offunding cani include commercial bank loans, grants, micro-loans, angel investors, venture capitalists, orf friends & family. Consider Insurance Options Attend Networking Events and/or. Join anl Industry Association pbnbizcom EQ M Building a Prosperous Community Revenue. About the Palm Beach North Chamber of Commerce Local Business Resource Center NEW/COMPLIANCE REQUIREMENT FOR MORE INFORMATION Interested ins scheduling aribbon cutting or expanding your network through opportunities withy your local chamber? Contactus! (561)746-7111 infofpbnchamber. com 5520PGAE Blvd., #200 Palm Beach Gardens, FL3 33418 www. pbnchamber.com LOCAL BUSINESS RESOURCE Poweredbythel CENTER Palm Beach! North Chamberof Commerce Scant the OR codeb below to visitthe Local Business Resource Center poweredbyt theF Palm Beach North Chamber of Commerce. Herey yous will finda access tor resources sucha asb business startupi information and networking8 & educational opportunities. ALME Local Business Resource Center www. pbnbiz.com LOCALE BUSINESS RESOURCE Cham Home StartaE Business Resources Events Register Your Business Business License/Fee Rate Structure Town ofjupiterl Inlet Colony Village ofT Tequesta Cityof Palm Beach Gardens City of Rivieral Beach Village of North Palm Beach Town ofjupiter Nob business taxi receipts requiredbyt the Town Town of Juno! Beach Town ofN Mangonial Park TowmoflakePark Town of Palm Beach! Shores Palm Beach County Towne ofjupiterl Inlet Colony Noner requiredbythe7 Town Villagec ofl Tequesta Cityof Palm Beach Gardens Citys ofR Rivieral Beach Business Taxi Receipt Fees Schedule Bullding Fee Schedule Village ofl North Palm! Beach Town ofjupiter No business taxr receipts required by the Town Towne ofjuno Beach Town ofl Mangonia Park TownofLakePark Town of Palm Beach Shores Noner requiredbyn the Town Palm Beach County Zoning and Land Use Information Town ofjupiter Inlet Colony Village ofl Tequesta CityofP Palm Beach Gardens City of Rivieral Beach Village of North Palm Beach Town of Jupiter Town ofjunoE Beach Town of Mangonial Park TownofLakePark Townr nf Palm Rearh Charee Palm Beach North Chamber Ribbon Cuttings Member and Non-Member options available Tiered & elevated packages available for additional promotion opportunities on Chamber and podcast platforms Member: $350/$850 Non-Member: $550 E Elevated Promotion: $5,500/$7,500 Palm Beach North Education Foundation Palm Beach North Education Foundation is committed to investing in the educational future of our youth through literacy programs, teacher externships & retention incentives, and leadership awards for post-secondary PALM BEACH NORTH EDUCATION FOUNDATION education. The Foundation is a private non- profit foundation, affiliated with the Palm Beacl North Chamber of Commerce, and works specifically with schools and students in the Palm Beach North region. PALM BEACH CHAMBER OF cor AWARD WINNING CHAMB Palm Beach North Education Foundation $18K in funding for literacy intervention kits at Lake Park Elementary School! PALM CHAMBER BEACH OF CO AWARD WINNING CHAM Palm Beach North Education Foundation Phonics PALM BEACH NORTH EDUCATION FOUNDATION Thank You! Thank you for your ongoing partnership with and support for our efforts in the community! PALM CHAMBER BEACH OF CO AWARD WINNING CHAM Exhibit B TOWN OF LAKE PARK, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Prepared by the Finance Department 1923 LAKE PARL TOWN OF LAKE PARK, FLORIDA CONTENTS iIntroductory Section Letter ofTransmittal List ofPrincipal Town Officials. Organization Chart.. Financial Section Independent Auditors' Report.. Management's Discussion and Analysis. Basic Financial Statements Government-Wide Financial Statements: Statement ofNet Position Statement of Activities. Fund Financial Statements Balance Sheet Governmental Funds. Reconciliation oft the Balance Sheet Governmental Funds tot the Statement ofNet Position. Statement ofRevenues, Expenditures and Changes in Fund Balances Governmental Funds. Statement ofNet Position - Proprietary Funds. Statement of Cash Flows Proprietary Funds Statement of Fiduciary Net Position - Pension' Trust Fund Statement of Changes in Fiduciary Net Position - Pension Trust Fund 1-V vi vii 1-4 5-15 16 17 18 19 20 .21 22 24-25 .26 .27 28-67 Reconciliation oft the Statement of Revenues, Expenditures, and Changes in Fund Balances oft the Governmental Funds to the Statement of Activities Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds.....23 Notes to Basic Financial Statements. TOWN OF LAKE PARK, FLORIDA CONTENTS Required Supplementary Information (Unaudited) Schedule of Changes in Net Pension Liability and Related Ratios. Schedules of Contributions and Investment Returns. Notes to the Schedule ofContributions. Schedule ofChanges in' Total OPEB Liability Budgetary Comparison Schedule - General Fund Budgetary Comparison Schedule- - CRA Fund. .68 .69 .70 .71 72 .73 .74 Notes to the Budgetary Comparison Schedule Required Supplementary Information Combining Fund Financial Statements Supplementary Information) Combining Balance Sheet- - Nonmajor Governmental Funds.. Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds. .75 76 Statistical Section Net Position by Component. Changes in Net Position... Fund Balances ofGovernmental Funds. Changes in Fund Balances of Governmental Funds. Governmental Funds Tax Revenue by Source.. General Government Revenue by Source. Assessed Value ofTaxable Property Direct and Overlapping Property Tax Rates. Principal Property Taxpayers.. Property Tax Levies and Collections. Ratios of Outstanding Debt by Type Ratios ofGeneral Bonded Debt Outstanding. Direct and Overlapping Governmental Activities Debt.. Pledged-Revenue Coverage. Demographic and Economic Statistics Principal Employers. Operating Indicators by Function/Program Capital Asset Statistics by Function/Program. 77 78-80 .81 .82 83 .84 .85 86 .87 .88 .89 .90 .91 .92 .93 94 .95 96 .97 Full-Time Equivalent Town Government Employees by Function. TOWN OF LAKE PARK, FLORIDA CONTENTS Reporting Section Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit ofFinancial Statements Performed in Accordance with Government Auditing Standards. Schedule of Expenditures of] Federal Awards. Notes to Schedule of] Expenditures ofl Federal Awards Schedule of Findings and Questioned Costs.. Summary Schedule of Prior Audit Findings. 98-99 100-102 103 104 105-107 .108 109-111 112 113 Independent Auditors' Report on Compliance for the Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance. Management Letter in Accordance with the Rules of the Auditor General Independent Accountants' Report on Compliance Pursuant to ofthe State of] Florida. Section 218.415, Florida Statutes Corrective Action Plan.. INTRODUCTORY SECTION December 2, 2024 The Honorable Mayor, Town ofLake Park, Florida Members oft the Town Commission and Citizens The Annual Comprehensive Financial Report (ACFR) of the Town of Lake Park, Florida, (the "Town") for the fiscal year ended September 30, 2023, is hereby submitted. Florida law and the Rules of the Auditor General for the State of Florida require. every municipality to complete a set of audited financial statements annually within nine (9) months of the close of the fiscal year. This report is published to fulfill that requirement This report consists of management's representation concerning the finances of the Town of Lake Park. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the Town of Lake Park has established a comprehensive internal control framework that is designed both to protect the Town assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town of Lake Park's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of Lake Park's comprehensive framework ofinternal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is The Town of Lake Park's financial statements have been audited by Marcum LLP, certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Lake Park for the fiscal year ended September 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in financial statements; assess the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of Lake Park's financial statements for the fiscal year ended September 30, 2023, are fairly presented in conformity with GAAP. The independent auditor's report is located at the front of the Managements Discussion and Analysis (MD&A) immediately follows the independent auditors' report and provides a narrative introduction, Finance Department for the year ended September 30, 2023. complete and reliable in all material respects. 535 Park Avenue Lake Park, FL33403 Phone: (561)881-3350 Fax: (561)881-3358 Financial Section ofthis report on page 1. wwwhakgputhlunagew 1 overview, and analysis ofthe basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE TOWN Originally incorporated in 1923 as Kelsey City, the city was renamed in 1939 to the Town of Lake Park. The Town of Lake Park: is a political subdivision of the State of Florida with a population of 8,980 residents (U.S. Census Bureau, 2022 estimate), ideally located in the southeastern part of the State on the Atlantic Intracoastal Waterway. The Town is primarily residential but has several types of light industry, commercial and The Town of Lake Park operates under a commission-manager form of government. Policymaking and legislative authority are vested in a governing commission consisting of the Mayor, Vice-Mayor and three Commissioners. The governing body is responsible for, among other things, passing ordinances, adopting the budget, appointing committees, and hiring both the Town Manager and Town Attorney. The Town Manager serves as the Chief Administrative Officer for the Town and is responsible for day-to-day operations, In 2008, the Department of Justice of the United States filed a civil action against the Town alleging that the then current at-large method of electing the Commissioners for the Town, enhanced by the use of staggered terms and designated posts, resulted in black citizens of the Town having less opportunity than white citizens to participate in the political process and elect candidates of choice in violation of Section 2 of the Voting Rights Act of 1965. Subsequent to the end of Fiscal Year 2009, as a result of the Department of Justice Consent Decree with the Town, which requires that the Town change the manner in which candidates for Commission seats are elected by imposing a method known as "Limited Voting", an ordinance was adopted to amend the Charter to reflect this change. The seat of Mayor is elected in one election year and the four remaining commissioners are elected in the next election year, with no election occurring in the third year. The Mayor and Commission members are elected on a non-partisan The Town of Lake Park provides a full range of services, including building inspections, code enforcement, residential and commercial sanitation service, a public library, recreation and cultural events. Police and fire protection are contracted through Palm Beach County. Water and sewer service is provided through the Seacoast Utility Authority. The Town's financial statements also include the Lake Park Community Redevelopment Agency (CRA); a dependent special district established by the Town, The Town is financially accountable for the CRA which is included in the Town's financial statements as a blended component unit reported in a governmental (special revenue) fund, the CRA Fund. The Town is required by State law to adopt an annual budget for the general fund. The annual budget serves as the foundation for the Town's retail businesses and shopping centers. including the hiring, discipline, and firing of all Town employees. basis. There are no term limits for elected officials. under authority granted by Florida Statute 163, Section III. ii financial planning and control. The budget is prepared by fund, function (e.g., public safety) and department (e.g., police). The Town Manager may transfer resources within a department or fund up to $10,000. Budgetary transfers require the approval of the Town Commission for any of the following: transfers above $10,000, transfers between funds, transfers from Unassigned Fund Balance, or transfers from the Town's Contingency Account. LOCAL ECONOMY The Town's economic growth, which had been stymied due to the national recession and collapse of the housing and real estate market, has been showing steady growth and is projected to have significant growth in the near future, especially in thei CRA area. Property values increased dramatically throughout Palm Beach County and the Town of Lake Park between the years of2002 through 2008. The taxable value of property within the Town decreased 6.3% in 2009, mainly due to the passage of Amendment One (Property Tax Reform), an additional 15.6% in 2010 due to the economic downturn, and values dropped an additional 18.3% in 2011, and 5.5% in 2012. The taxable value has recovered 3.90% in 2013, 7.1% in 2014, 9.1% in 2015, 10.1% in 2016, 8.6% in 2017, 6.14% in 2018, 8.6% in 2019, 7.3% in 2020, 5.79% in 2021, and 10.3% in 2022. In 2023, taxable values increased from prior year at an eleven year high of 11.3%. The relationship of commercial assessments compared to residential assessment has historically been around 50/50, but with the decline in the housing market, this The Town is experiencing the buildout of some of the remaining vacant parcels but does not anticipate any significant changes in the type of development that will occur. Iti is anticipated that redevelopment and reuse of existing structures will eventually take place and that the Town will continue to diversify its tax base. The historical decline in both The decrease in taxable values within the Town peaked at more than $302 million, now stands at an increase and is expected to continue to increase over the next several years. As small increase in the millage was adopted for Fiscal Year 2013-2014 and the millage was held at the same rate for Fiscal Year's 2014-2015, 2015-2016, 2017- 2018, 2018- 2019, 2019-2020, 2020-2021, and in 2021-2022. For fiscal year 2016 the Town adopted a MSTU for fire services during the year, thus the millage for the Fire Services was not included in the operating millage accounting for a decrease in revenue and expense of $1,813,451. The operating millage rate was effectively held constant year-over-year through 2022-2023 at 5.3474 (8.8055 mills less the fire millage of3.4581). In 2023-2024, the operating millage rate was reduced by 3.0% to 5.1870. While public safety is paramount to the citizens of the Town, the cost of police services represent 26.4% of the General Fund expenditures and essentially consume 72.6% of the ad valorem tax revenue. The operational cuts that were enacted across all departments, excluding public The Town continues to look for ways to provide essential services to the public in the most cost efficient, effective way without the health, safety and welfare oft the community relationship has shifted to approximately 53/47. commercial and residential assessments appears to have been reversed. safety, to counter the loss of revenue will take years to reverse. iii being compromised. The use ofone time sources ofrevenue for recurring expenditures is not an option given the modest level of reserves and the threat of hurricanes as annual possibility. Alternative sources of revenue and possibly increased fees will be explored The Community Redevelopment Agency (CRA) purchased commercial property in 2008, located at 800 Park Avenue, which was refurbished and was used as an art studio and gallery for a period in 2010 and 2011. In 2012 the building was leased to The Artists of the Palm Beaches who are to provide free classes, have monthly exhibits, and use the building as the group's base of operations. Currently, the building is now operating as the Recreation Center for the Town of Lake Park. The building hosts various recreation programs including summer camp. Improvements have continued for the downtown alleyways; in 2012 completing the alleyway between 7th and gth streets south of Park Avenue. There are several incentives included in the CRA Plan including façade improvement grants and limited business development loan programs that continue to be in place. These incentives may be utilized in the future to encourage development of the for future budgets. downtown business district located within the CRA boundaries. ACCOUNTING AND BUDGETARY CONTROLS The accounting and financial reporting of the Town's general government operations takes place in four broad categories: the General Fund, Special Revenue Funds, Debt Service Fund, and Insurance Internal Service Fund. The records and reports for these funds are maintained on the modified accrual basis, with revenue being recorded when measurable and available, and expenditures being recorded when the services or goods are received and the liabilities incurred. Accounting records for the Town's enterprise Management of the government is responsible for establishing and maintaining internal controls designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP). The internal control is designed to provide reasonable, rather than absolute, assurance these objectives are met. The concept. of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the evaluation of costs and benefits requires estimate Asar recipient of federal, state and local awards, the Town is responsible for ensuring that adequate internal control is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control is subject to periodic In addition, the government maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with the legal provisions embodied in the annual budget approved by the government's governing body. Activities of the General Fund, Community Redevelopment Agency, Debt Service Fund and proprietary funds are operations and pension trust funds are maintained on the accrual basis. and judgments by management. evaluation by management. iv included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the individual fund. The government also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. As demonstrated by the basic financial statements and schedules included in the financial section of the report, the government continues to meet its responsibility for sound financial management. MAJOR INITIATIVES The Lake Shore Drive improvement project was a major initiative for prior fiscal years, however during recent years, the Town has devoted a significant amount of time, energy and resources to the continuing growth and redevelopment of the Town. Some of the improvements embarked on, have been completed, or are in progress, include the use of the $11,000,000 grant for water mitigation, the completion oft the bioswale project on 2nd Street, refurbishment of Kelsey Park and tennis courts, refurbishment of the Ilex playground, completion of the Lake Park Drive playground, as well as numerous upgrades to historic Town Hall. Additional emphasis is being placed on the scheduling of community-wide special events and capital revitalization improvements, including sidewalks and pavement, and are being developed to improve the Town's function and aesthetics. ACKNOWLEDGEMENTS An annual comprehensive financial report ofthis type and depth, illustrating the results of operations of the entire Town and its various diversified funds and activities, could not have been prepared SO completely without the dedication and efficiency of the Assistant Finance Director, along with the assistance oft the entire Finance Department staff. Their dedication and hard work is greatly appreciated. My appreciation is also extended too our independent auditors, Marcum LLP. for their cooperation and guidance. Special appreciation is extended to the Mayor, Town Commission, Town Manager, and Department Heads for their interest and support in planning and conducting the financial operations ofthe Town in a responsible and progressive manner. Jeff DaSilva Finance Director r TOWN OF LAKE PARK FLORIDA List of] Principal Officials September 30, 2023 Mayor Roger Michaud Vice Mayor Kimberly Glas-Castro Town Commission Mary Beth Taylor Michael Hensley Judith Thomas Interim Town Manager Bambi Mckibbon-Tumner Town Clerk Vivian Mendez Finance Director Jeffrey DaSilva Public Works Director Community Development Director Special Events Director Harbor Marina Director Human Resources Director Information Technology Director Jaime Morales Nadia DiTomasso Riunite Franks Jason Tenney Bambi Mckibbon-Tumer Paul McGuinness vi CITIZENS COMMISSIONER COMMISSIONER MAYOR VICEMAYOR COMMISSIONER VARIOUS BOARDS CRA TOWN MANAGER TOWN ATTORNEY ASSISTANT TOWNI MANAGER TOWN STAFF MANAGERI HUMAN RESOURCES HUMAN DIRECTOR RESOURCES STAFF CHIEF OFFICER LAKEP PARK COMMUNITY GRANTS WRITERI SPECIAL PALMBEACH PALMBE COUNTY COUNTY DISTRICT10 STATION TOWN CLERK TOWN CLERK STAFF LIBRARY INFORMATION HARBORI MARINA FINANCE DEVELOPMENT CHIEF PUBLIC EVENTS DIRECTOR DIRECTOR TECHNOLOGY DIRECTOR DIRECTOR DIRECTOR INFORMATION DIRECTOR PUBLICWORKS SHERIFF DEPARTI OFFICER GRANTS COMMUNITY WRITERICHIEF SPECIAL DEVELOPMENT PUBLIC STAFF INFORMATION OFFICERSTAFF LIBRARY STAFF MARINA STAFF FINANCE STAFF PUBLICWORKS OPERATIONS ADMINSTRATION MANAGER STAFF STREETS &ROADS STAFF STORMWATER STAFF SANITATION STAFF EVENTS STAFF GROUNDS MAINTENANCE STAFF FACILITIES MAINTENANCE STAFF VEHICLE MAINTENANCE STAFF FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT MARCUM A ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and' Town Commission Town ofLake Park, Florida Report on the. Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Lake Park, Florida (the "Town"), as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Town's basic financial Ino our opinion, the accompanying 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 Town, as of September 30, 2023, and the respective changes in financial position, and, where applicable, cash flows, thereof for the fiscal year then ended in accordance with accounting principles statements as listed in the table ofcontents. generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management, for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 1 Marcum LLP / 525 Okeechobee Boulevard I Suite 750 / West Palm Beach, FL 33401 / Phone5 561.653.7300 / marcumlp.com In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors'. Responsibilities. for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but isr not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the Inj performing an audit in accordance with GAAS and Government. Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, no such Evaluate the appropriateness of accounting policies used and the reasonableness: of significant accounting estimates made by management, as well as evaluate the overall Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town's ability to continue as a going We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal judgment made by a reasonable user based on the financial statements. disclosures in the financial statements. opinion is expressed. presentation oft the financial statements. concern for ai reasonable period oftime. control- related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 5 through 15, the budgetary comparison schedules and the related note on pages 72 to 74, and the required supplementary information for the pensions and OPEB on pages 68 to 71, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental 2 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The combining financial statements as listed in the table of contents, and the schedule ofexpenditures and federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) are presented for additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining fund financial statements and the schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement oft the other information exists, we are required to describe it in our report. assurance thereon. 3 Other Reporting Required by Government. Auditing Standards Ina accordance with Government Auditing Standards, we have also issued our report dated December 2, 2024, on our consideration ofthe Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town'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 Town'si internal control over financial reporting and compliance. MArILLP West Palm Beach, FL December 2, 2024 4 MANAGEMENTS DISCUSSION AND ANALYSIS (MD&A) TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 The Town of Lake Park, Florida (the "Town") administration offers readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2023. Readers are encouraged to consider the information presented here in conjunction with additional information that has been furnished in The information contained within this Management's Discussion and Analysis (MD&A) is only ac component of the entire financial statement report. Readers should take time to read and evaluate all sections of the report, including the Notes to the Financial Statements and the Required Supplementary Information that is provided in addition to this MD&A. the transmittal letter and the accompanying basic financial statements. Financial Highlights Govermment-Mide Financial Statements The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows at September 30, 2023 by $25,172,774. Ofthis amount, unrestricted net position is $3,137,252. The total net position increased by $1,820,290 of which an increase of $2,539,229 was attributed to governmental activities and a decrease of $718,939 was related to business-type activities. The change in net position of the business-type and governmental activities oft the Town was primarily attributable to an increase of commercial and residential development, along with rising costs for the operation of sanitation services. Fund Financial Statements As of the close of the 2023 Fiscal Year, the Town's General Fund reported ending fund balance of $6,523,587 an increase of $984,525 from the prior year. Of the total fund balance, $4,026,446 is assigned, restricted or non-spendable, while $2,497,141 is unassigned and available for future uses by the Town Commission, an increase of $1,537,791 in unassigned At the end of the 2023 Fiscal Year, the unassigned fund balance for the General Fund represented just 22.3% of total General Fund expenditures or approximately 30 days of fund balance. available funding. 5 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 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 Town as a whole. (2) Fund financial statements tell how these services were Fund financial statements also report the Town's operations in more detail than the government- wide statements by providing information about the Town's most significant funds. (3) Notes to the basic financial statements expand upon information reported in the government-wide and financed in the short term, as well as what remains for future spending. governmental fund statements. Reporting the Town as a Whole Statement of Net Position and the, Statement of Activities Govermment-Mide) Af frequently asked question regarding the Town'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 Town as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows, liabilities and deferred inflows 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 These two statements report the Town's net position and changes therein. Net position, assets and deferred outflows less liabilities and deferred inflows, are one way to measure the Town's financial health, or financial position. Over time, increases or decreases in net position are an The Statement of Net Position and the Statement of Activities present information about the Governmental activities - All oft the Town's basic services are considered tol be governmental activities, including general government, community development, public safety, public services, library, and recreation. Property taxes, sales taxes, utility taxes, intergovernmental Proprietary actviteyBusines-ype activities The Town charges a fee to customers to cover all or most of the cost of the services provided. The Town's Sanitation Fund, Stormwater expenses are taken into account, regardless of when cash is received or paid. indicator ofv whether the financial health is improving or deteriorating. following: revenue and franchise fees finance most oft these activities. Fund and Marina Fund are: reported in this category. 6 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Reporting the Town's Most Significant Funds Fund Financial, Statements The fund financial statements provide detailed information about the most significant funds not the Town 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 Town's three kinds of funds, governmental, proprietary, and fiduciary, use Governmental funds - Most of the Town's basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out, with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called the modified accrual accounting method, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Town'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 Town's programs. The basic governmental fund financial statements can be found on pages 16-27 ofthis report. Enterprise funds - The Town has three enterprise funds, Sanitation, Stormwater and Marina, which charge customers for the services they provide. 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. These funds are reported using the full accrual basis of accounting; revenues are recognized in the period earned and expenses are recognized in the period that liabilities are incurred. The basic proprietary fund financial statements can be found on pages 22-25 ofthis report. Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Town'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 26-27 different accounting approaches as explained below. ofthis report. Notes to the Financial, Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 28-67 ofthis report. 7 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Other. Information Ina addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information for The Town adopts annual appropriated budgets for the General Fund and CRA. Budgetary comparison schedules for the General Fund and CRA are included as Required Supplementary The Town also adopts an annual budget for the Streets and Roads Fund and Insurance Fund. Budgetary comparison schedules for these funds are also included as Other Supplementary Information section of this report. The combining and individual fund statements and schedules are presented immediately following the required supplementary information on pages 75-76 of pension benefits can be found on page 68-71 ofthis report. Information on pages 72-74 to demonstrate compliance with the budget. this report. Government-Wide Financial Analysis Net Position As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the Town, governmental activity assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $17,725,405. Business-type activity assets exceeded liabilities and deferred inflows by $7,447,369. The Town-wide total net position was $25,172,774 at the close of the fiscal year ended September 30, 2023. The The Town's net investment in capital assets (e.g., land, buildings, equipment and vehicles, less any related debt used to acquire those assets that is still outstanding) was $18,492,351 or over 73% oft total net position at September 30, 2023. Capital assets total $24,459,520 at September 30, 2023, or 69% of all assets and deferred outflows, which total $35,436,312. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the net position $3,543,171 represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position of$3,137,252 may be used to meet the government's ongoing obligations to citizens and creditors. The following table reflects the condensed Summary of Net Position for the current Statement ofNet Position is on page 16 ofthis report. year as compared to the prior year. 8 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Summary of Net Position Governmental Activities 2023 2022 Business-Type Activities 2023 2022 Total 2023 2022 Assets Lease obligation Capital assets, net Total Assets Lease (right-of-use asset) Pension relatedi items Liabilities Current liabilities Long-term liabilitlies Totall Liabilities Deferred Inflows ofl Resources Leases Deferred gain on bond refunding, net Net Position Neti investment in capital assets Restricted Unrestricted Totall Net Position Governmental Activities $13,072,305 $ 12,647,778 $(2,155,373) $ (1,733,593) $ 10,916,932 $ 10,914,185 10,536,410 9,569,092 13,923,110 13,507,997 24,459,520 23,077,089 23,608,715 22,216,870 11,767,737 11,774,404 35,376,452 33,991,274 59,860 2,280,239 3,362,562 139,503 59,860 139,503 637,901 125,773 2,918,140 3,488,335 3,007,471 3,107,836 3,630,145 3,424,768 6,637,616 6,532,604 5,287,710 6,470,398 4,268,046 3,550,541 9,555,756 10,020,939 655,460 52,322 707,782 655,460 655,460 699,799 699,799 699,799 57,555 757,354 52,322 52,322 57,555 57,555 8,178,523 7,040,813 10,313,828 10,163,404 18,492,351 17,204,217 6,003,711 4,659,622 (2,866,459) (1,997,096) 3,137,252 2,662,526 $17,725,405 $15,186,176 $ 7,447,369 $ 8,166,308 $25,172,774 $23,352,484 3,543,171 3,485,741 3,543,171 3,485,741 Net position of the governmental activities of the Town have increased $2,539,229 from 2022 due to increased tax and investment revenue offset by increased employee and public safety costs. Total assets and deferred outflows of governmental activities have increased by $1,312,202 mainly due to vehicle fleet and road improvement additions and total liabilities and deferred inflows of resources have decreased by $1,227,027 primarily from expending ARPA funds, thus reducing unearned revenues. Unrestricted net position increased by $1,344,089. Net position for business-type activities have decreased $718,939 from 2022 primarily due to reduced capital grant revenue offset by a reduction in Marina costs from a one-time payment for property purchase in 2022. Total assets decreased by $6,667 while total liabilities and deferred inflows have increased by $712,272. Unrestricted net position has decreased by $869,363. Business-Type. Activities 9 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 The following is a summary of the changes in net position for the years ended September 30, 2023 and 2022: Summary of Changes in Net Position Governmental Activities 2023 2022 Business-Type Activities 2023 2022 Total 2023 2022 Revenues Program revenues Charges for services Operating grants and contributions Capital grants and Lease (right-of-use asset) General revenues Taxes Intergovermmental Miscellaneous Investment earnings Gain ons sale ofe equipment Total Revenues $2,951,913 $ 4,192,676 $ 4,798,473 $ 4,767,148 $ 7,750,386 $ 8,959,824 1,560,624 2,306,282 129,449 8,906,775 7,478,218 1,418,852 1,877,912 200,907 542,395 139,437 1,560,624 2,445,719 112,027 5,123 1,580,413 22,309 16,675 56,543 134,572 1,692,440 8,906,775 7,478,218 1,418,852 1,877,912 223,216 559,070 56,543 121,952 2,751 6,477 124,703 6,477 $15,710,915 $16,089,067 $4,899,123 $6,496,226 $20,610,038 $22,585,293 Governmental Activities 2023 2022 3,246,177 2,131,579 4,636,567 5,529,482 789,540 567,812 1,152,078 1,510,035 995,026 1,488,811 1,411,479 114,884 Business-Type Activities 2023 2022 Total 2023 2022 3,246,177 2,131,579 4,636,567 5,529,482 789,540 567,812 1,152,078 1,510,035 995,026 1,488,811 1,411,479 114,884 839,980 Expenses General government Public safety Physical environment Transportation Culture and recreation Lease (right-of-use asset) Interest on long-term debt Marina Sanitation Stormwater Totall Expenses Transfers In/(Out) Changei inl Net Position Net Position End of Year 931,643 100,106 931,643 100,106 643,893 2,265,025 4,975,478 2,265,025 4,975,478 2,746,651 1,979,857 2,746,651 1,979,857 839,980 233,594 1,213,595 643,893 12,938,092 11,667,127 5,851,656 7,599,228 18,789,748 19,266,355 2,539,229 3,208,345 (718,939) 110,593 1,820,290 3,318,938 $17,725,405 $15,186,176 $7,447,369 $8,166,308 $25,172,774 $23,352,484 (233,594) (1,213,595) Net Position Beginning of Year 15,186,176 11,977,831 8,166,308 8,055,715 23,352,484 20,033,546 Overall total revenues are down by $1,975,255. Program revenues decreased by $3,652,401 and general revenues increased by $1,677,146. 10 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Governmental Activities Revenue collections of taxes including property taxes, franchise fees, utility services taxes, fuel taxes and communication services taxes have increased $1,428,557. This is due in large part to an increase in property taxes caused by new development and an increase in the property values in2 2023. Business-Type. Activities Total revenues for business-type activities of the Town have decreased by $1,597,103. This is primarily the result of a decrease in Storm water revenues due to completion of projects related Overall, net position increased $1,820,290. The increase ini net position is primarily related to the to grant funding for Lake Shore Drive improvements in 2022. increase in property values. Governmental Activities Changes in the expenses for 2023 in Public Safety is attributable to a decrease in the Sheriff's contract. The change in the General government is attributable to an average raise ofj just over 3%1 for all employees and filling vacant positions in several departments. Business-Type. Activities The decreased expenses for the Marin Fund are directly related to a one-time $2.4 million payment to Palm Beach County for a previous land purchase in 2022. The increase in the Sanitation Fund expenses is the result of increased contract expenses due to nonfunctioning vehicles. Financial Analysis of the Governments' Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds The focus of the Town's governmental fund financial statements is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government's net resources available for spending at the end of the At September 30, 2023, the Town's primary operating fund, the General Fund, reported ending fund balance of $6,523,587 an increase of $984,525 from the prior year. Of this amount, $2,497,141 is considered unassigned fund balance and is available for spending at the Town's discretion. However, it is recommended that these funds be maintained at this level in the event ofan emergency such as a hurricane. However, $478,442 is restricted for specific purposes such as the Community Improvement Beautification (CIB) Fund. The remainder of fund balance fiscal year. 11 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 $3,353,381 is non-spendable to indicate that it is not available for new spending because it has already been committed (1) for inventories and prepaid expenses $103,383 and (2) as advances to other funds, in particular to cover the cash deficit in the pooled cash of the Marina Fund As ai measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents approximately 38.3 percent of total General Fund expenditures, while total fund balance represents 58.2 percent of that same amount. A sound financial management policy would dictate that the unrestricted, unassigned fund balance be maintained between 10-25% of total expenditures. To that end, the budget for Fiscal Year 2024 has been constructed to maintain fund balance at the end of the year, absent significant revenue shortfalls. The General Fund will see increased revenues over the next several budget cycles and is expected to receive repayments $3,250,000. from the Marina Fund. Enterprise Funds The Town's enterprise funds are accounted for on an accrual basis and may be measured year- over-year by the Change in Net Position, a measure of the difference that the year made in the The Marina Fund had a decrease in Net Position of $281,360 resulting from operating expenses, including depreciation, exceeding operating revenues, bringing the fund's Total Net Position to The Marina's change in net position is primarily due to depreciation. The Marina is currently being considered for redevelopment which will increase the Marina's revenue. The Marina Fund's deficit is being covered by the General Fund through a do-to/due-from accounting The Sanitation Fund has a decrease in Net Position of $750,150, bringing the fund's Total Net Position for the fund to $355,137. The decrease in net position is a result outsourcing garbage The Stormwater Fund had an increase in Net Position of $312,571, bringing the fund's' Total Net Position for the fund to $8,236,674. This increase is largely due to significant capital Total Assets less the Total Liabilities. $(1,256,504). function. disposal services due to nonfunctioning sanitation vehicles. improvements which will continue for the next several years. 12 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 General Fund Budgetary Highlights The annual General Fund budget is adopted after two public hearings and approval ofthe Town Commission. Any amendments that would exceed the original budget at the fund level or would require funds to be transferred from contingency would require a formal budget amendment requiring the adoption ofa resolution by the Town Commission. The General Fund appropriation was increased from $10,480,281 to $11,552,824. Capital Asset and Debt Administration The Town's total investment in capital assets at September 30, 2023 was $24,459,520 (net of accumulated depreciation). Capital assets include land, construction in progress, buildings, equipment and vehicles and infrastructure. The Town's net capital assets at September 30, 2023 and 2022 are summarized as follows: Capital Assets (Net of Depreciation) Governmental Activities 2023 2022 685,062 498,966 1,535,865 1,713,355 328,247 Business-Type Activities 2023 2022 Total 2023 2022 Land Lease obligation Buildings Equipment and vehicles Leases (Right-of-use asset) Streets, roads, ands sidewalks Lcasc (ug-urusc assciy 2,767,746 $2,767,746 $2,492,332 $2,492,332 $5,260,078 $5,260,078 1,858,363 1,933,037 1,967,854 1,222,855 3,826,217 3,155,892 8,388,925 2,656,654 9,047,349 3,803,657 17,436,274 6,460,311 415,575 5,989,153 1,100,637 6,488,119 1,535,865 1,713,355 328,247 3,155,892 Total Capital Assets, net $15,564,208 $9,569,758 $13,923,110 $13,507,997 $29,487,318 $26,233,647 Capital projects during Fiscal Year 2023 included the following: Roadway Improvements Town Hall Improvements Purchase of new sanitation vehicle Replacement and upgrades of a stormwater systems Additional information on the Town's capital assets can be found in Note 6 of the Notes to Financial Statements. 13 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Long-Term Debt The Town incurred new debt during fiscal year 2023 for the purchase of sanitation trucks. The debt position ofthe Town is summarized as follows: Governmental Activities 2023 2022 Business-Type Activities 2023 2022 Total 2023 2022 Loans payable Lease obligations Other Post-Emp. Benefits Net pension liability Compensated absenses Lease (right-of-use asset) Unamortized premium Total 769,721 $1,105,682 $3,436,439 $3,165,472 $4,206,160 $4,271,154 1,259,919 1,320,013 83,096 245,780 333,034 270,530 269,944 378,425 53,681 105,597 1,313,600 1,425,610 79,163 32,493 40,692 66,840 28,966 51,209 73,524 115,589 245,780 333,034 311,222 321,153 378,425 66,840 108,129 73,524 $3,007,471 $3,107,836 $3,630,145 $3,424,768 $6,637,616 $6,532,604 Additional information on the Town's debt can be found in Note 7 of the Notes to Financial Statements. Economic Factors and Next Year's Budgets and Rates For the fiscal year 2023-2024, the Town Commission adopted a General Fund budget of $13,736,384, compared with the budget for the fiscal year 2022-2023 for $11,552,824. The Town adopted a MSTU for fire services in 2015, thus the millage for the Fires Services is not included in the operating millage. The operating millage rate was reduced from 5.3474 to 5.1870 The greatest impact on the General Fund expenditures is the contract with the Palm Beach County Sheriff for policing services, which represents 30% of the total and uses 73% of the Ad Valorem property tax revenue. In an effort to off-set some of the impact on the General Fund revenue constraints the Town continues to operate with many cuts implemented in prior years Current general economic conditions are inflating the cost of goods and services as well as the Town's ability to attract and hire new employees. The recent inflationary pressure will require the Town to maintain fiscal controls on spending and project management. However, the Town will be able to engage in several large infrastructure expenditures due to the acquisition of several State and federal grants for various infrastructure improvements and the use of American (8.6451 mills less fire millage of3.34581). across all departments and must continue to limit capital and other projects. Rescue Plan Act funds approved by the Federal Government. 14 TOWN OF LAKE PARK, FLORIDA MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Requests for Information This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Town's finances and to demonstrate the Town's accountability. Questions concerning information provided in this report or requests for additional financial information should be directed to: Finance Department Town ofLake Park 535 Park Avenue Lake Park, FL: 33403 (561)881-3350 15 FINANCIALSTATEMENTS TOWN OF LAKE: PARK, FLORIDA STATEMENT OFI NET POSITION SEPTEMBER: 30, 2023 Governmental Business-Type Activities 484,977 265,517 3,276,792 17,624 205,268 673,369 3,452,808 7,083,602 23,608,715 59,860 617,953 93,410 48,388 1,452,872 67,616 312,217 2,695,254 5,287,710 655,460 655,460 8,178,523 170,086 912,027 16,593 341,132 2,067,847 35,486 6,003,711 Activities 112,254 9,386 (3,276,792) 49,213 22,093 2,907,907 11,015,203 11,767,737 Total 597,231 274,903 66,837 227,361 673,369 6,360,715 18,098,805 35,376,452 59,860 1,179,015 135,436 69,071 1,452,872 81,746 841,731 5,795,885 9,555,756 655,460 52,322 707,782 18,492,351 170,086 912,027 16,593 341,132 2,067,847 35,486 3,137,252 Assets Cash and cash equivalents Accounts receivable, net Due from other governments Internal balances Inventory Prepaid items Lease receivable Capital assets Total Assets Deferred Outflows of] Resources Pension related items Liabilities Accounts payable Accrued liabilities Accrued interest payable Unearned revenue Deposits Noncurrent liabilities Due within one year Due ini more than one year Totall liabilities Deferred Inflows of Resources Leases Deferred gain on bond refunding, net Total Deferred Inflows of Resources Net Position Net investment in capital assets Restricted for: Debt service Infrastructure Capital projects Public improvements Economic environment Other restrictions Unrestricted Totall Net Position 8,148,758 $ 928,473 $ 9,077,231 Capital assets not being depreciated Capital assets being depreciatedamortized, net 561,062 42,026 20,683 14,130 529,514 3,100,631 4,268,046 52,322 52,322 10,313,828 (2,866,459) $17,725,405 $ 7,447,369 $ 25,172,774 The accompanying notes are an integral part of these statements. 16 TOWN OFLAKEI PARK,FLORIDA STATEMENTOF ACTIVITIES FOR THE. FISCALYEAR ENDED SEPTEMBER 30, 2023 Net (Expense) Revenue and Changes in] Net Position Activities Program Revenues Operating Capital Grants and Grants and Contributions Contributions 564,595 $ 975,642 3,606 16,781 1,560,624 Charges for Services Governmental Business-type Activities (1,460,949) $ (2,156,369) (579,985) (1,152,078) (1,343,030) (1,488,811) (114,884) (8,296,106) Functions/Programs Governmental Activities General government Public safety Physical environment Transportation Culture and recreation Economic environment Interest on long-term debt Total Governmental. Activities Business-Type Activities Marina Sanitation Stormwater Total Businc-lypeActivtie: Total Expenses Total (1,460,949 (2,156,369) (579,985) (1,152,078) (1,343,030) (1,488,811) (114,884) (8,296,106) (409,769 (813,551 175,260 (1,048,060) (9,344,166) 5,324,494 883,943 858,102 1,283,912 268,030 288,294 1,418,852 56,543 223,216 559,070 11,164,45 1,820,2 23,352,4 $ 3,246,177 $ 1,220,633 $ 4,636,567 789,540 1,152,078 1,510,035 1,488,811 114,884 12,938,092 2,265,025 2,746,651 839,980 5,851,656 1,504,556 205,949 20,775 2,951,913 1,855,256 1,933,100 1,010,117 4,798,473 General Revenues Taxes Property taxes Infrastructure surtax Franchise: fees Utility service taxes Local option gas taxes Communication: services taxes Unrestricted intergovernmental. sharedi revenues Gain ons sale ofcapital assets Miscellaneous Investment earnings unrestricted Transfers Total General Revenues and' Transfers Change in Net Position Net Position, Beginning Net Position, Ending 129,449 129,449 (409,769) (813,551) 175,260 (1,048,060) (1,048,060) 5,123 5,123 134,572 ) 18,789,748 $ 7,750,386 $ 1,560,624 $ (8,296,106) 5,324,494 883,943 858,102 1,283,912 268,030 288,294 1,418,852 200,907 542,395 (233,594) 10,835,335 2,539,229 15,186,176 56,543 22,309 16,675 233,594 329,121 (718,939) 8,166,308 > 17,725,405 $ 7,447,369 $ 25,172,774 The accompanying notes are an integral part of these staten TOWN OF LAKE PARK, FLORIDA BALANCE: SHEET- COVERMMENTALFINDS SEPTEMBER 30, 2023 ARPA Grant Fund Nonmajor Governmental Governmental Funds 118,065 133,401 500 Total Funds 484,977 673,369 265,517 538,976 3,250,000 17,624 90,879 CRA Fund General 366,912 673,369 132,116 221,597 3,250,000 17,624 85,757 Assets Casha and cash equivalents Accounts: receivable, net Leases receivable Due from other governments Due from other funds Advances to other funds Inventory Prepaids Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities Accounts payable Accrued! liabilities Unearnedi revenue Due to other funds Deposits Totall Liabilities Deferred Inflows of Resources Leases Unavailable revenue Fund Balances Nonspendable: Inventory Prepaids Advances to other funds Restricted: for: Debt service Infrastructure Capital projects Other restrictions Enforcement of Floridal Building Code Publici improvements Economic environment Assigned to: Subsequent years expenditures Special revenue funds Unassigned Total Fund Balances Totall Liabilities, Deferred Inflows of Resources, and Fund Balances 3,478,601 $ 1,799,836 $ 1,246,630 $ 1,529,361 $ 8,054,428 317,379 4,622 8,225,976 $ 2,121,837 $ 1,246,630 $ 1,781,327 $ 13,375,770 $ 250,731 $ 89,514 293,227 317,379 67,616 1,018,467 655,460 28,462 683,922 17,624 85,757 3,250,000 49,368 $ - $ 317,854 $ 617,953 3,896 11,209 76,743 409,702 93,410 1,452,872 394,122 67,616 2,625,973 655,460 28,462 683,922 17,624 90,879 3,250,000 170,086 912,027 16,593 35,486 442,956 341,132 2,067,847 194,623 98,194 2,428,428 10,065,875 1,148,436 1,148,436 49,368 4,622 500 170,086 912,027 16,593 341,132 35,486 442,956 194,623 2,497,141 6,523,587 2,067,847 98,194 98,194 (68,713) 1,371,625 2,072,469 8,225,976 $ 2,121,837 $ 1,246,630 $ 1,781,327 $ 13,375,770 The accompanying notes are an integral part oft theses statements. 18 TOWN OF LAKE: PARK, FLORIDA TOTHE: STATEMENT OF NET POSITION GOVERNMENTAL ACTIVITIES SEPTEMBER30,2023 RECONCILIATION OF THEI BALANCE SHEET- GOVERNMENTAL FUNDS Fund Balances - Total Governmental Funds Amounts reported for governmental activities int the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported ini the governmental funds: Governmental capital assets Less accumulated epreiationamorization Revenue is recognized when earned int the government-wide statements, regardless ofwhen iti is collected. Governmental funds report based on modified accrual, i.e., both measurable and available. Long-term liabilities, including bonds payable, are: not due and payablei in the current period and therefore are not reported int the governmental funds: 10,065,875 $ 4 24,751,880 (14,215,470) 10,536,410 Current year revenues 28,462 Accrued interest payable on long-term debt Compensated absences Total other post employment benefits liability Net pension liability Lease (right-of-use asset) acquired Lease obligations Loans payable (48,388) (270,530) (83,096) (245,780) (378,425) (1,259,919) (769,721) (3,055,859) Deferred outflows andi inflows of resources related toj pensions are applicable to future periods and, therefore, are not reported int the governmental funds: Pension related deferred outflows 59,860 Internal service funds are used by management to charge costs of certain activities to individual funds. The assets and liabilities of internal service funds are included in governmental activities int the statement of net position. Net Position of Governmental Activities 90,657 1 17,725,405 The accompanying notes are an integral part oftheses statements. 19 TOWN OF LAKEI PARK, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES-GOVERMMENTAL, FUNDS FORTHE FISCAL YEAR ENDED SEPTEMBER: 30, 2023 ARPA Grant Fund 621,952 Nonmajor Governmental Governmental Funds Total Funds General Fund 6,844,556 $ 1,148,939 1,638,915 1,597,025 205,949 599,370 12,034,754 2,986,890 4,636,023 788,559 452,928 1,436,915 393,897 411,527 90,586 11,197,325 837,429 393,897 915,938 (1,162,739) 147,096 984,525 5,539,062 CRA Fund Revenues Taxes Licenses andj permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Total Revenues Expenditures Current: General government Public safety Physical environment Transportation Culture and recreation Economic environment Capital outlay Debt service: Principal Interest charges Grants and aid Total Expenditures Excell (Deficiency) of] Revenues Over (Under) Expenditures Other Financing Sources (Uses) Lease (right-of-use: asset) acquired Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund balances Beginning Fund balances Ending - $ 883,943 $ 7,728,499 1,148,939 3,764,461 1,597,025 205,949 996,367 975,643 82,185 1,057,828 527,951 314,812 1,726,706 15,441,240 621,952 3,472 458,427 405,320 866,936 2,990,362 4,636,023 788,559 911,355 1,436,915 1,194,812 1,271,253 411,527 90,586 293,999 789,492 10,420 293,999 1,093,911 (471,959) 1,162,739 (173,889) 988,850 516,891 1,555,578 1,734,155 14,025,391 (7,449) 1,057,828 1,415,849 393,897 2,078,677 (2,312,271) 160,303 1,576,152 8,489,723 (975,643) (975,643) 82,185 16,009 (7,449) 1,379,074 6,523,587 $ 2,072,469 $ 98,194 $ 1,371,625 $ 10,065,875 The accompanying notes are an integral part of these statements. 20 TOWN OF LAKE: PARK, FLORIDA RECONCILIATION OF THE STATEMENT OFI REVENUES, EXPENDITURES. AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TOTHE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Net Change in Fund Balances- Total Governmental Funds Amounts reported for governmental activities in the statement of Governmental funds report capital outlays as expenditures. However, in the statement ofactivities, the cost of those assets is depreciated over their estimated useful lives Expenditures for capital assets Less: current year depreciation and amortization 1,576,152 activities are different because: $ 1,677,336 (710,684) 966,652 The repayment (issuance) ofl long-term debt consumes (provides) the current financial resources of governmental funds. However, these transactions do not have any effect on net position oft the governmental activities. Long term debt repayments and issuances: Leases (Right-of-use assets) acquired Leases (Right-of-use assets) payments Lease obligations Loans payable 335,961 (393,897) 15,472 60,094 17,630 Some expenses reported in the statement ofa activities do not require the use of current financial resources and therefore are not reported Change in total other postemployment benefits liability Change in net pension liability and related deferred amounts Internal service funds are used by management to charge costs of certain activities toi individual funds. Thei net revenues of certain activities oft thei internal services funds are reported within governmental activities. as expenditures in governmental funds. Change in compensated absences Change in accrued interest (586) (3,933) 7,611 (24,298) (21,206) Change in Net Position of Governmental Activities 2,539,229 The accompanying notes are an integral part oftheses statements. 21 TOWN OF LAKE PARK, FLORIDA STATEMENT OF NETI POSITION PROPRIETARY FUNDS SEPTEMBER30,2023 Governmental Activities Total Marina Sanitation Stormwater Enterprise Internal Fund $ Fund Fund Funds Service Fund Assets Current Assets Cash and cash equivalents Accounts receivable, net Duei from other governments Prepaid items Inventory Total Current Assets Noncurrent Assets Capital assets not being depreciated Capital assets being depreciatedamortized, net Total Noncurrent Assets Total Assets Liabilities Current Liabilities Accounts payable Accrued liabilities Due to other funds Deposits payable slipi rentals Accrued interest payable Compensated absences payable, current Bonds payable, current Total Current Liabilities Long-Term Liabilities Compensated absences payable Total OPEBI liability Advance from other funds Bonds payable, net Totall Long-Term Liabilities Totall Liabilities Deferred Inflows of Resources Deferred gain on bondi refunding, net Net Position Net investment in capital assets Unrestricted Totall Net Position Adjustment to reflect consolidation of internal service fund activities Net Position of] Business-Type. Activities $ 39,690 $ 888,783 $ 928,473 $ 94,330 11,359 100,895 19,093 49,213 79,665 146,504 2,428,175 64,157 112,254 9,386 22,093 49,213 3,919 2,000 5,467 1,000 895,250 1,121,419 415,575 2,907,907 114,389 208,719 2,421,786 1,558,906 7,034,511 11,015,203 4,849,961 1,623,063 7,450,086 13,923,110 4,929,626 1,769,567 8,345,336 15,044,529 208,719 63,348 465,668 23,561 59,248 85,606 14,130 775 259,682 212,082 420,744 796,385 6,979 18,596 10,778 13,241 3,250,000 2,445,307 586,208 5,713,064 618,045 6,133,808 1,414,430 52,322 32,046 7,577 608 1,228 53,681 95,140 1,312,269 11,048 8,474 561,062 42,026 144,854 14,130 20,683 4,069 525,445 36,623 32,493 3,250,000 3,031,515 19,522 6,350,631 114,662 7,662,900 10,888 20,075 2,066 52,322 2,092,650 824,773 7,396,405 10,313,828 (3,349,154) (469,636) 834,269 (2,984,521) $(1,256,504) $ 355,137 $8,230,674 7,329,307 $ 208,719 208,719 118,062 $7,447,369 The accompanying notes are an integral part of these statements. 22 TOWNOFI LAKE PARK, FLORIDA PROPRIETARY FUNDS STATEMENT OFI REVENUES, EXPENSES, AND CHANGESI INF FUNDI NETI POSITION FOR THEFISCALYEAR ENDED SEPTEMBER: 30, 2023 Governmental Activities Internal Total Marina Fund Sanitation Stormwater Enterprise Fund 22,282 490,480 201,916 Fund Funds Service Fund 22,309 1,051,397 Operating Revenue Charges for services Miscellaneous Total Operating Revenues Operating Expenses Personal services Operating expenses Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Interest revenue Interest expense Gain ons sale ofp property and equipment Totall Nonoperating Revenues (Expenses) Income (Loss) Before transfers and Contributions Capital Contributions Transfers Transfers in Transfers out Total Transfers Changei inl Net Position Net Position Beginning Net Position Ending 1,855,256 $ 1,933,100 $ 1,010,117 $ 4,798,473 $ 269,675 1,855,283 1,955,382 1,010,117 4,820,782 27 387,226 1,254,997 2,010,490 537,585 2,179,808 2,702,886 (324,525) (747,504) (85,217) (85,217) (409,742) (718,714) 138,382 (10,000) 128,382 (281,360) (750,150) 269,675 58,466 211,208 269,674 173,691 401,821 3,667,308 264,468 1,003,969 839,980 5,722,674 170,137 663 663 170,800 5,123 136,648 136,648 312,571 (901,892) 16,675 (128,982) 56,543 (55,764) (957,656) 5,123 275,030 (41,436) 233,594 (718,939) 16,012 (43,765) 56,543 28,790 (31,436) (31,436) (975,144) 1,105,287 7,918,103 8,048,246 $(1,256,504) $ 355,137 $ 8,230,674 $ 7,329,307 $ 208,719 208,718 The accompanying notes are an integral part of these statements. 23 TOWN OFI LAKEI PARK, FLORIDA STATEMENT OF CASHI FLOWS PROPRIETARY FUNDS FOR THE FISCALYEARI ENDED SEPTEMBER: 30, 2023 Governmental Activities Total Marina Sanitation Stormwater Enterprise Internal $1,854,493 $ 1,926,762 $ 1,328,375 $5,109,630 $ (1,209,137) (1,591,857) (387,065) (3,188,059) (270,094) (376,308) (497,981) (168,480) (1,042,769) 328,296 (188,938) 772,830 912,188 Fund Fund Fund Funds Service Fund Cash Flows From Operating Activities Cashi received from customers Cash paid tos suppliers Cash paid to employees Payments to other funds Payments from other funds (58,466) 269,675 (58,885) (25,862) (25,862) 59,248 59,248 Net Cash Provided by (Used in) Operating Activities Cash Flows From) Noncapital Financing Activities Transfers in Transfers (out) Net Cash Provided by (Usedi in) Noncapital Financing Activities Cash Flows From Capital and Related Financing Activities Note payable proceeds Capital contributions Acquisition and construction of capital assets Sale of capital assets Interest paid on debt Principal payments on debt Net Cash Provided by (Usedi in) )Capital and Related Financing Activities Cash Flows From Investing Activities Interest on investments Net Cash Provided by (Usedi in)l Investing Activities Net Increase (Decrease) in Cash and Cash Equivalents 138,382 (10,000) (31,436) 128,382 136,648 275,030 (41,436) (31,436) 136,648 233,594 687,243 56,543 687,243 5,123 56,543 (589) (119,772) 5,123 (138,381) (822,362) (458,339) (1,419,082) (254,132) (168,828) (51,916) (474,876) (482,963) (276,137) (505,721) (1,264,821) (90,450) (28,733) 16,012 16,012 663 663 16,675 16,675 (26,285) (480,499) 404,420 (102,364) 26,797 520,189 484,363 1,031,349 512 $ 39,690 $ 888,783 $ 928,985 $ 94,330 (58,885) 153,215 Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year $ The accompanying notes are an integral part of these statements. 24 TOWN OFI LAKEI PARK, FLORIDA STATEMENT OF CASHI FLOWS PROPRIETARY FUNDS (CONTINUED) FOR THE FISCALYEAR ENDED SEPTEMBER: 30, 2023 Governmental Activities Total Marina Sanitation Stormwater Enterprise Internal $( (324,525) $ (747,504) $ 170,137 $ (901,892) $ 537,585 201,916 264,468 1,003,969 Fund Fund Fund Funds Service Fund Cash Flows From Operating Activities Operating income (loss) Adjustments toi reconcile operating income to net cash provided by operating activities: Depreciation Change in assets andl liabilities: (Increase) decreasei in accounts receivable (Increase) decreasei in due from other governments (Increase) decrease ini inventory (Increase) decrease: inj prepaid expenses Payments from(to) other funds Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in compensated absences Increase (decrease) in OPEB Total Adjustments Net Cash Provided by (Used in) Operating Activities Noncash Activities Amortization of Premium on Bonds Amortization of Refunding Gain onl Bonds (790) (28,620) Lease Obligat Lease Obligai Lease Obligal 182 59,248 45,678 420,633 10,052 (191) 1,057 652,821 5,443 (23,967) 312,815 312,815 (1,000) (2,818) 33,386 15,756 482,067 3,729 15,618 (368) (10,517) 1,850 3,527 (2,000) (25,862) 1,837 (9,958) 620 (51,773) (7,113) 558,566 602,693 1,814,080 (58,886) 328,296 $ (188,938) $ 772,830 $ 912,188 $ (58,885) $ (6,684) $ (5,233) $ $ - $ - $ (6,684) $ (5,233) $ The accompanying notes are an integral part of these statements. 25 TOWN OF LAKE PARK, FLORIDA STATEMENT OF FIDUCIARY NET POSITION RETIRED POLICE OFFICERS' PENSION TRUST FUND SEPTEMBER 30, 2023 Assets Cash and cash equivalents Investments Equity exchange traded funds Fixed income exchange traded funds Real estate exchange traded funds Global fixed income mutual funds Total Investments Prepaid retirement benefits Total Assets Net Position $ 86,843 718,427 130,376 51,885 192,000 1,179,531 9,654 1,189,185 1,189,185 Held in trust for pension benefits The accompanying notes are an integral part of these statements. 26 TOWN OF LAKE PARK, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION RETIRED POLICE OFFICERS PENSION TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Additions Contributions Employer Investment Income Interest and dividends Total Investment Income Less investment expenses Net Investment Income Total Additions Deductions Retirement benefits Administrative expenses Total Deductions Change in Net Position $ 62,090 110,596 31,104 141,700 (816) 140,884 202,974 132,388 33,813 166,201 36,773 Net appreciation in fair value ofi investments Net Position Held in' Trust for Pension Benefits Net Position Beginning Net Position - Ending 1,152,412 1,189,185 The accompanying notes are an integral part of these statements. 27 NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Town of Lake Park, Florida (the "Town") was incorporated in 1923. The Town's Charter was approved by the Laws of Florida, Chapter 61-2375. The Town is governed by an elected Mayor and Town Commission which appoints a Town Manager. The Town provides the following services: public safety, recreation, sanitation, streets and roads, The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") as applied to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the Town are described planning and zoning, and general administrative services. below: FINANCIAL REPORTING ENTITY Under governmental accounting and financial reporting standards, the Town's reporting entity consists of the Town, organizations for which the Town is financially accountable, and other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the Town's financial statements to be misleading or incomplete. The Town is considered financially accountable if it appoints a voting majority of an organization's governing body and is either able to impose its will on that organization, or has a financial benefit/burden relationship with the organization. The Town may also be financially accountable if an organization is fiscally dependent on the primary government and the two also have a financial benefit or burden relationship. Component units are included in the reporting entity either as blended or as discretely presented. Blended component units, although legally separate entities, are, in substance, part of the Town's operations. Accordingly, data from these component units are combined with data of the primary government. The Town has met the criteria as having the operational and financial responsibilities as noted above for the blended component unit listed below and this entity has been included in the Town's financial reporting entity. The Lake Park Community Redevelopment Agency (the "CRA") is a dependent special district established by the Town of Lake Park, Florida, under authority granted by Florida Statute 163, Section III. The CRA is included in the Town's financial reporting entity as a blended component unit reported as a governmental (special revenue) fund, the Community Redevelopment Fund. The CRA is a legally separate entity and the governing body oft the CRA consists ofthe Town Commission plus two other members appointed by the Town Commission and the Town handles the management and administration of the CRA's financial matters. Separate financial statements for the CRA are prepared. 28 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) GOMERNMENPMIDEANP, FUND FMANCHLSTATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the Town. For the most part, the effect ofi interfund activity has been removed from these statements with the exception ofinterfund services provided and used which are: not eliminated. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant The statement of activities demonstrates the degree to which the direct expenses ofa 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 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 enterprise fund are reported as separate columns in the fund financial statements. All remaining nonmajor governmental MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. 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 extent on fees and charges for support. revenues are reported instead as general revenues. funds are aggregated and reported as nonmajor governmental funds. PRESENTATION the provider have been met. 29 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT. ACCOUNTING POLICIES (CONTINUED) MEASUREMENT Focus, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT Governmental fund financial statements are reported using the current financial resources measurement, focus and the modified accrual basis ofaccounting. 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 Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise fees and other taxes, licenses, rent, and interest associated with the current fiscal period are all considered to be susceptible to accrual and sO have been recognized as revenues of the current fiscal period. Revenues for expenditure driven grants are recognized when the qualifying expenditures are incurred. All other revenue items are considered to be measurable and available only when cash is received by the Town. PRESENTATION(CONTINUED) The Town reports the following major governmental funds: The General Fund is the primary operating fund and is used to account for all financial resources applicable to the general operations of the Town except those required to be The CRA fund is a special revenue fund and is used to account for all financial resources applicable to the promotion of the physical and economic development of certain areas in the Town of Lake Park and is funded from incremental tax revenues The ARPA Grant Fund is a special revenue fund used to account for the grant accounted for in another fund. within the designated CRA area. revenues received. 30 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT, ACCOUNTING POLICIES (CONTINUED) MEASUREMENT Focus, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PAESENTATION/CONTINUEP, The Town reports the following major proprietary funds: The. Marina Fund accounts for the operations of the Town's municipal marina, which The Sanitation Fund accounts for the operations of the Town's garbage and trash The Stormwater Utility Fund is used to account for the charges and related expenses are: financed primarily by user charges. collection services, which are financed primarily by user charges. for the Town's stormwater drainage system. The Town reports the following non-major funds: The Special Revenue fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The Town has three non-major special revenue funds: the Streets and Roads Fund, Public This Debt Service Fund is used to account for resources accumulated and payments made for principal and interest of the Town's general obligation bonds which are The Public Improvement Fund is a special revenue fund used to account for revenues The Special Projects Fund is a special revenue fund used to account for construction The Capital Projects Bond Fund is used to account for construction and renovation Internal service funds account for operations that provide services to other departments on a cost reimbursement basis. The Insurance Fund accounts for the Town's general liability and Improvement Fund and Special Projects Fund. payable from ad valorem taxes. received restricted for public improvements. and renovation projects. projects funded with debt proceeds. workers' compensation insurance plans. 31 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT. ACCOUNTING POLICIES (CONTINUED) MEASUREMENT Focus, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT Fiduciary funds are used to account for assets held on behalf of outside parties, including other governments, or on behalf of other funds within the government; pension trust funds are held under the terms of a formal trust agreement. The fiduciary fund of the Town PRESENTATION(CONTINUED) includes: Retired. Police Officers' Pension Fund This fund was established in 2004 to receive and invest Town contributions in a defined benefit pension plan and to disburse these monies to Police retirees in accordance with As a general rule, the effect ofinterfund activity has been eliminated from the government- wide financial statements. Exceptions to this general rule are charges between the government's enterprise funds and various other functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the various Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 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 Town's marina and sanitation enterprise funds are charges to customers for sales and services. Operating expenses for the enterprise funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating the Pension Plan Ordinance. functions concerned. revenues and expenses. 32 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCENETPOSTION Deposits and Investments at fair value. The Town's cash represents cash deposits. The Town's investment in Florida PRIME (external investment pool) is recorded at amortized cost. All other investments are reported The nature of investments of the Town are governed by the provisions of Florida Statutes Section 218.415 Under this statute, authorized investments are limited, unless otherwise Investments in the Retired Police Officers' Pension Fund is governed by its respective authorized by law or resolution/ordinance. investment policy and Florida Statutes Section 112.661. Accounts Receivable Accounts receivable represent amounts due from local businesses for franchise taxes, utility taxes, delinquent property taxes and other charges in the General Fund, and solid waste disposal fees and marina slip rentals in the Enterprise Funds. The Town does not require collateral for accounts receivable. Accounts receivable are net of allowances for uncollectible accounts determined based on the age of the individual receivable, with age categories ranging from 30 days past due to several years past due. Generally, the allowance includes accounts over 90 days past due. Accounts receivables are written off on an individual basis in the year the Town deems them uncollectible. Lease Receivables The Town's lease receivable is measured at the present value ofl lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation oft the lease in an amount equal to the initial recording oft the lease receivable. The deferred inflow ofr resources is amortized on as straight-line basis over the term oft the lease. Interfund Transactions Activity between funds that is representative of ending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans). All other outstanding balances between funds are reported as "advance to/advance from other funds". 33 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCE/NETPOSITION/(CONTINUED) Interfund Transactions (continued) 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 Inventories are valued at cost determined on a first-in, first-out basis. Inventories in the General Fund consist of expendable supplies held for consumption. Inventories in the Marina 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. Prepaid Items/Expenses Prepaids represent goods and services which are paid for in one period, but benefit a future period. Prepaids are recorded as an expenditure/expense in the fund level and government- wide financial statements in the period benefited. Prepaids for governmental fund types are reported as an asset of the fund with a corresponding amount recorded as non-spendable fund balance. Capital Assets 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 Town defines capital assets as assets with an initial individual cost of$5,000 or more and an estimated life in excess of one year. In accordance with GASB Statement No. 34, the Town has elected not to record infrastructure assets purchased prior The accounting and reporting treatment applied to the capital assets associated with a fund are determined by its measurement focus. General capital assets are assets ofthe Town 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 to October 1, 2003 in the accompanying financial statements. the assets. 34 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCE/NETPOSITION/(CONTINUED) Capital Assets (continued) acquisition. Assets acquired by gifts or bequests are recorded at their fair value at the date of Capital assets of the enterprise funds 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. Capital assets of the Town are depreciated using the straight-line method over the following estimated useful lives: Buildings and infrastructure Building improvements Equipment and vehicles Docks and channels Leases (right-to-use assets) 20-50 years 7-50 years 5-15 years 20 years Through lease maturity Deferred Outflows and Inflows of Resources The statement of net position includes a separate section for deferred outflows of resources. This represents the consumption of net assets applicable to future periods and will not be recognized as expenditures until the future period to which it applies. Currently, the Town The statement of net position also includes a separate section, listed below total liabilities, for deferred inflows of resources. This represents the acquisition of net assets applicable to future periods and will not be recognized as revenue until the future period to which it applies. The Town also has lease related deferred inflows, which are discussed in Note 7 has deferred outflows related to pensions. and deferred gain on bond refunding. 35 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCE/NETPOSITION/(CONTINUED) Leases (Right-to-use. Assets) The leases (right-to-use assets) are initially measured at an amount equal to the initial measurement of the related lease liability plus any lease payments made prior to the lease term, less lease incentives, and plus ancillary charges necessary to place the lease into service. The leases (right-to-use assets) are amortized on a straight-line basis over the life of the related lease. Compensated. Absences 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 Town will compensate the employee in some manner, e.g., in cash or paid time-off, now or upon termination or retirement. The Town uses the vesting method in accruing sick leave liability. Under the vesting method, the liability for vacation leave is accrued for employees who are eligible to receive termination payments upon separation. The Town's policy is to allow employees to accumulate vacation leave to a maximum of 480 hours. At the time of retirement or termination all vacation leave up to a maximum of 240 hours is payable at 100% to the employee. Except for liabilities incurred by employment terminations, such Compensated absences are accrued when incurred in the government-wide and proprietary financial statements. Benefits that were earned but not used during the current year were accrued at employees' pay rates in effect at September 30, 2023. A liability for these amounts is reported in the governmental funds only ifthey have matured, for example, as a result of employee resignations or retirements. For the governmental funds, compensated The amount attributable to the business-type activities is charged to expense with a corresponding liability established in the government-wide financial statements as well as benefits are paid only when taken. absences are liquidated by the General Fund. the Enterprise Fund. Unearned. Revenue The Town 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. 36 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALAINCENETPOSITOSITIONICONTINUED) Long-Term Obligations Int the government-wide financial statements, and proprietary fund types 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 straight-line method. Unamortized bond premiums are 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 presented as an addition to bonds payable. received, are reported as debt service expenditures. Net Position Net position of the government-wide and proprietary funds is categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets is that portion of net position that relates to the Town's capital assets reduced by accumulated depreciation, deferred outflows or inflows related to debt, retainage payable and by any outstanding debt incurred to acquire, construct or improve those assets, excluding unspent proceeds. Restricted net position is that portion of net position that has been restricted for general use by external parties (creditors, grantors, contributors, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definition of either oft the other two components. Net Position Flow Assumption Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted - net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town's policy to consider restricted - net position to have been depleted before unrestricted - net position is applied. 37 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCE/NETPOSITION/(CONTINUED) Fund. Balance Flow.Assumptions Sometimes the Town will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Fund Balance Policies assigned, or unassigned. The Town's accounting and finance policies are used to interpret the nature and/or requirements of the funds and their corresponding assignment of restricted, committed, The Town reports the following classifications: Non-spendable fund balance. Non-spendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually Restricted fund balance. Restricted fund balances are amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) Committed fund balance. These amounts can only be used for the specific purposes pursuant to constraints imposed by a formal action of the government's highest level of decision-making authority. The Town Commission is the highest level of decision- making authority for the government that can, by adoption ofai resolution or an ordinance (equally binding), commit fund balance. Once adopted, the limitation remains in place until the Town Commission removes or revises the limitation by taking the same type of action (the adoption of another resolution or ordinance). This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. required to be maintained intact. imposed by law through constitutional provisions or enabling legislation. 38 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCE/NETPOSITION/(CONTINUED) Fund Balance Policies (Continued) Assigned fund balance. This classification reflects the amounts constrained by the Town's "intent" to be used for specific purposes, but are neither restricted nor committed. The Town's policy is that the Town Commission and the Mayor have the authority to assign amounts to be used for specific purposes. Assigned fund balances include all remaining amounts (except negative balances) that are reported in governmental funds, other than the General Fund, that are not classified as non-spendable and are neither Unassigned. fund balance. This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts of assets and deferred outflows ofresources, liabilities and deferred inflows of resources, disclosures of contingent liabilities, revenues and expendituresyexpenses reported in the financial statements and accompanying notes. Actual restricted nor committed. Use ofEstimates results could differ from those estimates. NewA Accounting Pronouncements, Adopted GASB Statement No. 91, Conduit Debt Obligations, provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with 1) commitments extended by issuers, 2) arrangements associated with conduit debt obligations, and 3) related note disclosures. This Statement was implemented by the Town for the fiscal year ended September 30, 2023; however, there was no impact to the Town. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, addresses issues related to public-private and public-public partnerships (PPP) and provides guidance for accounting and financial reporting for availability payment arrangements (APA). The Statement provides specific guidance on the accounting and financial reporting for PPP and APA transactions. This Statement was implemented by the Town for the fiscal year ended September 30, 2023; however, there was no impact to the Town. 39 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEI-SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES, FUND BALANCE/NETPOSITION/(CONTINUED) New.Accounting Pronouncements Adopted (continued) GASB Statement No. 96, Subscription-Based Information Technology Arrangements, provides guidance on the accounting and financial reporting for subscription-based information technology arrangements. This Statement was implemented by the Town for the fiscal year ended September 30, 2023; however, there was no impact to the Town. GASB Statement No. 99, Omnibus 2022, addresses certain practice issues identified during implementation and application of certain GASB Statements, including, but not limited to, 1) classification and reporting of derivative instruments within GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments; 2) clarification of provisions in GASB Statement No. 87, Leases; 3) clarification of provisions in GASB Statement No. 94, Public-Private and. Public-Public Partnerships and. Availability Payment Arrangements; and 4) clarification of provisions in GASB Statement No. 96, Subscription- Based Information Technology Arrangements. This Statement was implemented by the Town for the fiscal year ended September 30, 2023. NOTE2-P PROPERTYTAXES 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 ofeach year and each assessment roll is submitted to the State Department ofRevenue for review to determine if the assessment rolls meet all ofthe appropriate requirements of State law. The laws of the State regulating tax assessment are also designed to ensure a consistent property valuation method statewide. State Statutes permit municipalities to levy property taxes at a rate of up to 10 mills for operating purposes. The tax rate for the Palm Beach County Fire/Rescue Municipal Service Taxing The tax levy of the Town is established by the Town Commission prior to October 1 of each year during the budget process. The Palm Beach County Property Appraiser incorporates the Town'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 Town for the year ended September 30, 2023, was 5.3474 ($5.3474 for each $1,000 of assessed Unit (MSTU) is included in the 10 mills and was 3.4581. valuation). 40 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE2-1 PROPERTY TAXES (CONTINUED) 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 11 following the tax year, certificates are offered for sale for all 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, 2023, unpaid delinquent taxes are: not material and have not been recorded by the Town. delinquent taxes on real property. NOTE3-DEPOSITS. AND INVESTMENTS DEPOSITS In addition to insurance provided by the Federal Depository Insurance Corporation ("FDIC"), all 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 another banking institution eligible collateral. In the event ofa a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. Accordingly, all amounts reported as cash deposits including certificate of deposits, are insured or collateralized. The Town maintains a pooled account for cash and cash equivalents that is available for use by all funds. Each fund's portion of the pooled account is displayed on the financial statements as "Pooled cash and cash equivalents". Interest income from pooled checking accounts is allocated back to the General Fund. Investment income from the pooled SBA accounts is allocated to the funds based on each fund'si relative equity in the pool. 41 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE3-DEPOSITS AND INVESTMENTS(CONTINUED) INVESTMENTS The Florida State Board of Administration ("SBA") Pool, hereinafter referred to as "Florida PRIME", is not a registrant with the Securities and Exchange Commission ("SEC"); however, its board has adopted operating procedures consistent with the requirements fora 2a-7 fund. In accordance with these requirements, the method used to determine the participants' shares sold and redeemed is the amortized cost method. Amortized cost includes accrued income and is a method of calculating an investment's value by adjusting its acquisition cost for the amortization of discount or premium over the period from The SBA is governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215 of the Florida Statutes. These rules provide guidance and establish the general operating procedures for the administration of the SBA. Additionally, the Office of the Auditor General of the State of Florida performs the operational audit of the activities and investment of the SBA. The SBA accounts are not subject to custodial credit risk as these investments are not evidenced by securities that exist in physical or bank entry form. In accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants, the Town's investment in the Florida PRIME meets the definition of a qualifying investment pool that measures, for financial reporting purposes, all of its investments at amortized cost and should disclose the presence of any limitations or restrictions on withdrawals. As of September 30, 2023, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100% of their account value. The Town, therefore, has no investments reported at fair value. The investment in the Florida PRIME is not insured by FDIC or any other governmental agency. At September 30, 2023, the Town's investment in the Florida purchase to maturity. PRIME was $8,002,472. Florida PRIME is presented as a cash equivalent. Interest Rate Risk The Town has an investment policy that limits investment maturities as a means of managing its exposure to market value losses arising from increasing interest rates. To mitigate risk, the Town primarily invests in investments with maturities of twelve months The dollar weighted average days to maturity ("WAM") of Florida PRIME at September 30, 2023, is 35 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life ("WAL") of Florida PRIME at or less. September 30, 2023, is 75 days. 42 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE3-DEPOSITS AND INVESTMENTS(CONTINUED) INVESTMENTS (CONTINUED) Credit Risk The Town has an investment policy that limits investments to the highest ratings by a nationally recognized statistical rating organization ("NRSRO") (Standard and Poor's and Moody's investment services). In order to mitigate credit risk, the Town does limit investments to the highest ratings by al NRSRO. Florida PRIME is rated AAAm by Standard and Poor's. Concentration of Credit Risk The Town diversifies its portfolio in such a way to control the risk of loss resulting from concentration of assets to a specific maturity, instrument, issue, dealer, or bank though which these securities are bought and sold. The Town only invests in Florida PRIME at September 30, 2023. NOTE4-NOTES RECEIVABLES AND GRANT COMMITMENTS The CRA has aj program to give grants and low interest loans for business development and facade improvements. The loans bear interest at 2% and are payable monthly for terms of five to ten years. The grants are to be repaid ift thel business is sold within five years and one fifth of the grant is forgiven each year. Both the loans and grants are secured by a lien on the improvements and/or the property of the business. There are no loans outstanding at In fiscal year 2023, a grant for $1,000,000 payable over five years was awarded with September 30, 2023. $200,000 being paid and al balance of$800,000. 43 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTES-RECEIVABLES Accounts receivables as of September 30, 2023, were as follows: Public Fund General Improvement Marina Sanitation Fund Fund Fund Total Accounts receivable Less: Allowance for uncollectible accounts 367,711 $ 118,065 $11,359 $116,133 $ 613,268 (799) (15,238) (16,037) Total Accounts Receivable, Net $ 366,912 $118,065 $11,359 $100,895 $ 597,231 LEASES RECEIVABLE Effective October 1, 2021, the Town implemented GASB No. 87, Leases, which required the Town to recognize a lease receivable and a deferred inflow of resources. The Town, as lessor, has ground leases for a communication tower (cell phone tower) and a parking lot. As of September 30, 2023, the remaining lease terms under these agreements, including options to extend, ranged from six to fifteen years. An initial lease receivable was recorded in the amount of $752,914. As of September 30, 2023, the value of the lease receivable is $673,369. The value of the deferred inflow of resources as of September 30, 2023, was $655,460, and the Town recognized lease revenue of $26,430 and interest income of $27,992 during the fiscal year. The following schedule represents the future principal and interest revenue to be received: Fiscal Year Ending September 30 2024 2025 2026 2027 2028 2029-2033 2034-2038 Total Principal $ 31,372 34,053 36,884 39,874 209,609 292,746 Interest 25,781 24,527 23,165 21,690 84,253 36,810 Total 57,153 58,580 60,049 61,564 293,862 329,556 28,831 $ 26,935 $ 55,766 673,369 $ 243,161 $ 916,530 44 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE6-CAPTALASETS Capital Assets activity for the year ended September 30, 2023, was as follows: Beginning $ 2,767,746 $ 498,966 7,972,225 7,684,452 4,151,155 19,807,832 1,491,240 (6,258,870) (177,490) Lease Obligat (196,667) (2,218,118) (270,877) (8,476,988) (710,684) Ending $ 2,767,746 7,972,225 8,585,592 393,897 4,347,358 21,299,072 (6,436,360) (196,667) (65,650) (2,488,995) (9,187,672) 12,111,400 Governmental Activities Capital assets not being depreciatedamortized Land Construction inj progress Capital assets being depreciatedamorized Buildings Improvements Leases (Right-of-use asset) Machinery and equipment Total Capital Assets Being Depreciate/Amortied Less accumulated epreciatonamortization for Buildings Improvements Leases (Right-of-use asset) Machinery and equipment Total Accumulated DeprciatomAmortization Governmental Activities Capital Assets, Net Balance Additions Deletions Balance $ 575,977 (389,881) 685,062 575,977 (389,881) 3,452,808 Total Capital Assets Not Being Depreciated/Amortzed 3,266,712 901,140 393,897 196,203 (65,650) 780,556 Total Capital Assets Being Deprecated/Amortize, net 11,330,844 $14,597,556 $ 1,356,533 $ (389,881) $15,564,208 45 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE6-CAPITAL, ASSETS/CONTINUED) The capital asset activity ofbusiness-type activities for the fiscal year ended September 30, 2023, was as follows: Business-Type Activities Capital assets not being depreciatedamortized Land Construction inj progress Total Capital Assets Not Being Depreciated Capital assets being depreciated Improvements Machinery and equipment Total Capital Assets Being Depreciated Less accumulated depreciation for Improvements Machinery and equipment Total Accumulated Depreciation Business-Type Activities Capital Assets, Net Beginning $2,492,332 $ 5,989,153 8,481,485 12,585,053 5,922,866 3,828,927 1,069,794 16,413,980 6,992,660 (8,781,396) (679,174) (2,606,072) (324,795) (11,387,468) (1,003,969) Ending $2,492,332 Balance Additions Deletions Balance $ 229,531 (5,803,109) 415,575 229,531 (5,803,109) 2,907,907 18,507,919 4,898,721 23,406,640 (9,460,570) (2,930,867) (12,391,437) 11,015,203 Total Capital Assets Being Deprecate/Amortza, net 5,026,512 5,988,691 $13,507,997 $ 6,218,222 $(5,803,109) $13,923,110 Deprciationamortization expense was charged to unctions/programs of the primary government as follows: Governmental activities General government Physical environment Public safety Transportation Culture and recreation $ 395,316 981 544 240,723 73,120 Total DepreiatiomAmertization Expense Governmental Activities $ 710,684 Business-Type activities Marina fund Sanitation fund Stormwater fund $ 537,585 201,916 264,468 1,003,969 Total Depreciation Expense Business-Type Activities 46 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE7-LONG-TERMI LIABILITIES The following is a summary of changes in long-term liabilities of the Town for governmental activities for the fiscal year ended September 30, 2023: Beginning $1,105,682 $ 1,320,013 79,163 Ending Due Within Balance Additions Reductions Balance One Year Governmental activities Notes payable Lease obligations Net pension liability (see note 11) Total OPEBI liability (see1 note 12) Leases (Right-of-use asset) Compensated absences payable $(335,961) $ 769,721 $ 143,346 (60,094) 1,259,919 63,331 78,487 27,053 333,034 140,309 (227,563) 245,780 269,944 284,694 (284,108) 270,530 $3,107,836 $827,192 $(927,557) $ 3,007,471 $ 312,217 8,292 (4,359) 393,897 (15,472) 83,096 378,425 Total Compensated absences, Net pension liability and Total OPEB liability for governmental activities are generally liquidated by the General Fund. The government portion of these The following is a summary of changes in long-term liabilities of the Town for business- liabilities are reflected: in the Statement ofNet Position. type activities for the fiscal year ended September 30, 2023: Beginning Ending Due Within Balance Additions Reductions Balance One Year 600,472 $687,243 $(216,276) $ 1,071,439 $ 261,764 Business-type: activities Notes] payable Lease obligations Revenue bonds Unamortized premium Total OPEB liability (see note 12) Compensated absences payable 105,597 2,565,000 73,524 28,966 (51,916) (6,684) (3,908) 53,681 66,840 32,493 40,692 53,681 4,069 (200,000) 2,365,000 210,000 7,435 51,209 52,494 (63,011) Total $3,424,768 $747,172 $(541,795) $ 3,630,145 $529,514 PLEDGED. REVENUES The Revenues Bonds Series 2016 and the Promissory Notes Series 2008A, 2008B and 2009 are all secured by the non-ad valorem revenues of the Town. The pledged revenues for the fiscal year ended September 30, 2023 were $7,419,802 and the related debt service was $713,045. Total principal and interest to maturity to be paid from pledged revenues is $3,969,096. 47 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE7-LONG-TERMI LABLITIES/CONTNLEP, PROMISSORYNOTE, SERIES 2008A (NOTES PAYABLE) On August 28, 2008, the Town executed a tax-exempt note in the principal amount of $4,928,350 with the Bank of America. Loan proceeds are restricted to finance the settlement of the pension obligation to the Town of Lake Park Firefighters' Pension and for the construction of improvements in the marina. In addition, $2,420,000 of the governmental loan proceeds were transferred to the CRA as a grant for the acquisition of property and for the construction of improvements within the Town's community redevelopment area in accordance with an interlocal agreement between the Town and the CRA executed on August 20, 2008. The agreement does not require the CRA to repay the grant from the Town; however, if the CRA makes a voluntary payment to the Town, the The Town is required to meet certain minimum financial amounts, debt limitations and reporting requirements. The continued exclusion of interest on the Tax-Exempt Note from gross income for federal income tax purposes depends, in part, upon compliance with the arbitrage limitations imposed by Sections 103(b)(2) and 148 oft the Internal Revenue Code. Interest on the note is payable by the Town semi-annually on April 1 and October 1 and principal payments are due on April 1 with a final maturity date of April 1, 2028. The note bears an annual interest rate of 3.67%, which is subject to adjustment upon the occurrence Town will use the payment to pay debt service on the note. ofa Determination ofTaxability. PROMISSORYNOTE, SERIES 2008B (NOTES PAYABLE) On August 28, 2008, the Town executed a note in the principal amount of $309,550 with the Bank of America to finance the construction of improvements in the marina and the purchase of recreation vehicles. The Town is required to meet certain minimum financial amounts, debt limitations and reporting requirements. Interest on the note is payable by the Town semi-annually on April 1 and October 1 and principal payments are due on April 1 with a final maturity date of April 1, 2028. The note bears an annual interest rate of 6.78%. PROMISSORYNOTE, SERIES 2009 (NOTES PAYABLE) On August 7, 2009, the Town executed a note in the principal amount of $1,475,000 with the Bank of America to finance land acquisition and improvements, the purchase of a sanitation truck, fuel tanks, parking meters, and make roof repairs. The Town is required to meet certain minimum financial amounts, debt limitations and reporting requirements. Interest on the note is payable by the Town semi-annually on April 1 and October 1 and principal payments are due on April 1 with a final maturity date of April 1, 2024. The note bears an annual interest rate of5.11%. 48 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE7-LONG-TERMI LIABILITIES( (CONTINUED) PROMISSORYNOTE, SERIES 2009 (NOTES PAYABLE) (CONTINUED) The Promissory Notes Series 2008A, 2008B and 2009 all contain a provision that upon the occurrence of any event of default, the bank may declare all obligations of the Town under the notes 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. DOERING PROMISSORYNOTE: (NOTES PAYABLE) The Town entered into a promissory note for financing the purchase of a sanitation truck with a price of $165,575 on September 7, 2022. There are thirty-six monthly payments due of $5,390 starting on September 7, 2022, and the note bears an annual interest rate of 11.25%. GOVERMMENTOBLIGATION/NOTES, SERIES 2023 (NOTES PAYABLE) On April 5, 2023, the Town executed a note for the purchase oft two sanitation trucks. The note was for total amount of $687,243. The Town is required to appropriate funds annually toj pay the current amount due. The note is payable in four annual payments of $198,287. Principal and interest on the note is payable by the Town annually a final maturity date of April 5, 2027. The note bears an annual interest rate of5.990%. GOVERMMENTOELIGATIONNOTES, SERIES 2023 (NOTES PAYABLE) The agreements include a provision that upon the occurrence of any event of default, the lessor may retake possession ofthe sanitation trucks. The debt service requirements to maturity for the notes payable are as follows: Governmental Activities Business-Type Activities Interest 44,409 28,694 15,452 1,440 Year Ending 2024 2025 2026 2027 2028 Total Total Amount 168,501 168,401 168,297 168,188 Total Amount 319,056 259,703 259,635 61,276 September 30, Principal Interest Principal 274,647 231,009 244,183 59,836 143,346 $ 25,630 $ 168,976 261,764 $ 62,743 $ 324,507 148,233 153,673 159,312 165,157 20,268 14,728 8,985 3,031 769,721 $ 72,642 $ 842,363 $1,071,439 $ 152,738 $1,224,177 49 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE7-LONG-TERM. LABLITIES/CONTNLEP, LEASE OBLIGATIONS The Town entered into a lease agreement for financing the installation and renewal of facility infrastructure with a purchase price of $1,494,679 on March 28, 2019. The accumulated amortization was approximately $280,125. Amortization expense related to the equipment is included in depreciation expense in the accompanying financial statements. The agreement includes a provision that upon the occurrence of any event of The Town entered into a lease agreement for financing the purchase of street sweeper with aj price of $259,871 on June 16, 2020. The accumulated amortization was approximately $155,922. Amortization expense related to the equipment is included in depreciation expense in the accompanying financial statements. The lease agreements include a provision that upon the occurrence ofany event of default, the lessor may retake possession The future minimum lease obligations as of September 30, 2023, are as follows: default, the lessor may retake possession oft the equipment under lease. oft the equipment under lease. Governmental Activities Interest 43,675 41,240 38,676 35,976 134,207 42,585 Business-Type Activities Interest Year Ending September 30, Principal 2024 2025 2026 2027 2028 2029-2033 2034-2037 Total Total Amount 110,390 111,498 112,639 113,813 587,943 496,664 Total Amount Principal $ 63,331 $ 45,987 $ 109,318 $ 53,681 $ 1,825 $ 55,506 66,715 70,258 73,963 77,837 453,736 454,079 $1,259,919 $ 382,346 $1,642,265 53,681 $ 1,825 $ 55,506 REVENUE BONDS, SERIES 2016 These bonds were issued September 29, 2016 in the amount of $3,660,000 to advance refund the Series 2003A Florida Municipal Loan Council Revenue Bonds. The refunded note had an outstanding principal of $3,575,000 at the refunding date and was called on November 1, 2016. The refunded note was issued in 2003 in the amount of $4,810,000 for the construction ofi improvements at the Town's marina. The 2016 Bonds mature serially on October 1 of each year through October 1, 2033 with interest payable semiannually at rates ranging from 2% to 5%. The loan is secured by a covenant to appropriate in the annual 50 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE7-LONG-TERMI LABLITIES/CONTNLEP, REVENUE BONDS, SERIES 2016(CONTINUED) budget the amount of non-ad valorem revenues to satisfy repayment. and is not an obligation of the Florida Municipal Loan Council, the State of Florida, or any political Default in the payment of principal or interest when due, in the performance of any part of the agreement, and/or any petition to declare bankruptcy are events of default. Remedies for an event ofdefault include, but are not limited to, the Bond Insurer directing the Trustee to pursue any available remedy allowed by law to enforce the payment of principal and subdivision. interest. The debt service requirements to maturity are as follows: Business-Type Activities Interest 69,762 64,925 59,975 54,350 131,700 Year Ending September 30, 2024 2025 2026 2027 2028 2029-2033 Principal 215,000 220,000 225,000 225,000 1,270,000 Total 284,762 284,925 284,975 279,350 1,401,700 $ 210,000 $ 73,962 $ 283,962 2 2,365,000 $ 454,674 $ 2,819,674 LEASES( RIGHT-OP-ISEASSEIS) The Town entered into 10 lease agreements as a Lessee with a duration of 60 months. The lease agreements qualify as other than a short-term lease under GASB 87 and; therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. An initial lease liability was recorded in the amount of $393,897. Principal and interest payments made during the fiscal year totaled $20,437. Required monthly fixed payments range from approximately $685 to $880. The value of the leases (right-to-use assets) as of September 30, 2023 is $393,897 with accumulated amortization of$65,650. 51 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE7-LONG-TERM. LABLITIES/CONTNLEP, LEASES RIGHT-OF-ISEASSETS/CONTINUED) payments as of September 30, 2023, are as follows: The future minimum lease obligations and the net present value of these minimum lease Year Ending September 30, 2024 2025 2026 2027 2028 Total Total Amount 99,172 99,172 99,172 81,487 Principal $ 78,487 78,487 78,487 64,477 Interest 20,685 20,685 20,685 17,010 78,487 $ 20,685 $ 99,172 378,425 $ 99,750 $ 478,175 NOTE8-I INTERFUND RECEIVABLES, PAYABLES, AND' TRANSFERS In governmental accounting, interfund loans are reported as interfund receivables in lender funds and interfund payables in borrower funds. There is no net effect in the governmental- wide financial statements. The current portion of the interfund loan is reported in the governmental funds as Due to and Due from other funds and the non-current portion is reported as Advance to and Advance from other funds. The composition ofinterfund balances at September 30, 2023, is as follows: Receivable Fund General Fund CRA Fund General Fund General Fund General Fund Total Interfund Balances Payable Fund Marina Fund General Fund Sanitation Fund Marina Fund Streets and Roads Fund Due to/from $ 317,379 85,606 59,248 76,743 Advance $ 3,250,000 $ 538,976 $ 3,250,000 All payables and receivables were for cash flow purposes. 52 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 8-I INTERFUND RECEIVABLES, PAYABLES,AND TRANSFERS (CONTINUED) Interfund transfers during the fiscal year ended September 30, 2023, are as follows: Transfer In Stormwater Fund - $ 138,382 136,648 Transfer Out General Fund ARPA Fund CRA Fund Marina Fund Sanitation Fund Total Funds General Fund CRA Fund Marina Fund Total - $ 1,162,739 975,643 173,889 10,000 31,436 $ 700,613 173,889 10,000 31,436 9 1 1,162,739 $ 915,938 $1 1,162,739 $ 138,382 $ 136,648 $ 2,353,707 The transfer from the CRA Fund to the General Fund was for principal and interest payments that the CRA Fund agreed to reimburse the General Fund if the CRA Fund has The transfer from the General Fund to the CRA Fund was for the 2023 incremental tax The transfers from the ARPA Fund to the General Fund, Marina Fund and Stormwater The transfer from the Marina Fund to the General Fund was for the Marina's share of the The transfer from the Sanitation Fund to the General Fund was for principal and interest sufficient available resources. obligation. Fund were for American Rescue Plan grant expenditures. Johnson Controls upgrade. payments. NOTE9-DEFERRED COMPENSATION PLAN ASSETS Employees of the Town may participate in a deferred compensation plan adopted under the provisions of Internal Revenue Code Section 457 (Deferred Compensation Plans with The deferred compensation plan is available to all employees of the Town. 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. Respect to Service for State and Local Governments). 53 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE9-DEFERRED COMPENSATION PLAN ASSETS( (CONTINUED) In1 1999, the Town adopted GASB-32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The Town 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 toj 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 no longer property of the Town and will no longer be subject to the claims of the Town's Because the Town has little administrative involvement and does not perform the investing function for funds in the Plan, the Town's activities do not meet the criteria for inclusion in general creditors. the fiduciary funds ofa government. NOTE I0-DIPNDCONTAIBTION PENSION. PLAN The General Employees Retirement Plan is a defined contribution pension plan established by the Town to provide benefits at retirement for all current employees. Defined contribution plans have terms that specify how contributions to an individual's account are tol be determined rather than the amount of pension benefits the individual is to receive. Ina defined contribution plan, the pension benefits aj participant will receive depend only on the amount contributed to the participant's account, earnings on investments of these contributions, and forfeitures of other participants' benefits that will be allocated to the participant's account. The Town does not hold or administer resources of the Plan. Consequently, the Plan does not meet the requirements forinclusion in the Town's financial statements as a fiduciary fund. The Plan does not issue a stand-alone financial report. Plan provisions are established and may be amended only by the Town Commission. Employees are eligible to participate in the plan after completing six (6) months of continuous full-time employment and having reached age 18. The Town is required to contribute 7.5% of the plan members' annual compensation and match 50% of the employees' voluntary contributions under the deferred compensation plan, up to a maximum of 2.5% of participants' annual compensation. For the fiscal year ended September 30, 2023, the Town had pension expense of $322,629, and there were forfeitures of$16,213. The Town had no contributions payable at September 30, 2023. Vesting of the Town's contributions in the 401(a) plan commences after two years of service, with 25% vesting in year two and 25% each year thereafter until fully vested after five years. If an employee terminates before becoming fully vested, forfeited amounts will be reallocated to accounts of remaining participants as an additional employer contribution. 54 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEIl-DEFINED BENEFIT PENSION PLAN The Town administers one single employer defined benefit pension plan that covers no current Town employees. The Retired Police Officers' Pension Fund ("RPOPF" or "Plan") covers certain police retirees. The plan was established by the Town and administered by a separate board of trustees. The Board of Trustees consist of five members, the Town Manager, the Town Finance Director, two plan participants and a Town Citizen appointed by the other four members. The plan does not issue stand-alone financial reports. At October 1, 2022, the date of the latest actuarial valuation, the membership in RPOPF consisted oft the following: Inactive plan members or beneficiaries currently receiving benefits 6 6 Active plan members Effective October 1,2001, the Palm Beach County Sheriff's Office (PBSO) was contracted to provide police services for the Town. In connection with the transfer of Town police services to the PBSO, the active plan members of the plan were eligible for a lump sum payout. Effective November 20, 2002, the Town terminated the Municipal Police Officers' Retirement Trust Fund and distributed lump sum payouts to the vested participants. On October 15, 2003, the Town established the Retired Police Officers' Pension Fund for the retirees covered by the original plan and transferred substantially all remaining assets of the The Plan is a substituted trust established on October 1, 2003 by Town Ordinance No. 13- 2003 to provide the retired members of the previous defined benefit pension plan with the monthly retirement benefits that were accrued under the prior plan. Accordingly, the Retired Police Officers' Pension Fund covers only retirees and has no active plan members ore employees of the Town that are eligible to participate and the provisions of the Retired Police Officers' Pension Fund as established by Town ordinance, do not address any provisions related to vesting, eligibility for retirement, future retirement benefits, other benefits, or employee contributions. Administrative expenses are financed as part of the original plan to the new plan in April 2004. unfunded actuarial accrued liability. 55 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEII-DEFINED BENEFIT PENSION PLAN (CONTINUED) INVESTMENTS Target Asset Mix The plan's adopted asset allocation policy as of September 30, 2023, is as follows: Target Allocation 29 % 25 26 4 1 1 5 9 100 % Asset Class Fixed Income Large cap growth Large cap value Mid cap growth Mid cap value Small cap growth Real estate Internatioanl Total Interest Rate Risk Interest rate risk refers to the portfolio's exposure to fair value losses arising from increasing interest rates. The Plan does not have a formal investment policy that limits investment maturities as a means of managing its exposure to market value losses arising from increasing interest rates. Credit Risk The Plan's investment policy limits investments in bonds, stocks, or other evidences 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 corporation is listed on any one or more of the recognized national stock exchanges or on the National Market System of the NASDAQ Stock Market and in the case of bonds only, holds a rating in one of the three highest classifications by a major rating service. Concentration ofCredit Risk The Plan's investment policy prohibits equity securities concentrations greater than 5% in the securities of any one company at cost and fixed income securities concentrations greater than 5% in any one issuer with the exception of U.S. government or agency issues. As of September 30, 2023, the value of each position held in the Plan's portfolio comprised less than 5% of fiduciary net position. 56 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEIl-DEFINED BENEFIT PENSION PLAN (CONTINUED) INVESTMENTS (CONTINUED) Rate of Return For the fiscal year ended September 30, 2023, the annual money-weighted rate of return on Pension Plan investments, net of pension plan investment expense, was 13.19 percent adjusted for the changing amounts actually invested. Fair Value Hierarchy Fair value is defined as the price that would be received to sell an asset or paid to transfera liability in an orderly transaction between market participants at the measurement date. The Town's pension plan categorizes their fair value measurements within the fair value hierarchy established by GAAP. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in Level 1- Investments' fair values based on prices quoted in active markets for identical Level 2-1 Investments' fair values based on observable inputs for the assets either directly or indirectly, other than those considered Level 1 inputs, which may include quoted prices for identical assets in markets that are not considered to be active, and quoted prices of similar measuring fair value are observable in the market. assets. assets in active or inactive markets. Level3-I Investments' fair values based upon unobservable inputs. 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. Exchange traded funds are commonly referred to as "ETF". ETFS are funds that trade like other publicly-traded securities and are designed to track an index. Similar to shares of an index mutual fund, each share of the fund represents a partial ownership in an underlying portfolio of securities intended to track a market index. The Plan does not value any ofi its investments using Level 2 or 3 inputs. 57 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEIl-DEFINED BENEFIT PENSION PLAN (CONTINUED) INVESTMENTS (CONTINUED) Fair Value Hierarchy (continued) September 30, 2023: The following is a summary oft the fair value hierarchy of the fair value ofinvestments as of Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level1) 192,000 718,427 130,376 51,885 Year Ended September 30, Fiduciary Fund Global fixed income mutual funds Equity ETF Fixed income ETF Real estate ETF 9/30/2023 192,000 $ 718,427 130,376 51,885 Total investments measured at fair value 1,092,688 $ 1,092,688 Risks and Uncertainties The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and those such changes could materially affect the amounts reported in the statement of fiduciary net position. The Plan, through its investment advisor, monitors the Plan's investments and the risks associated therewith on a regular basis which the Plan believes minimizes these risks. ACCOUNTING POLICIES The Plan follows the accrual basis of accounting. Contributions are recorded when paid or when the Town has made the commitment to contribute to the Plan. Purchases and sales are recorded on the trade-date basis. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan. Administrative costs of the Plan are funded through investment earnings. 58 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEII-DEFINED BENEFIT PENSION PLAN (CONTINUED) CONTRIELTIONSAND FUNDING POLICY The Town is required to make contributions at actuarially determined amounts; there was $34,093 minimum contribution requirement for the fiscal year ended September 30, 2023. The minimum contribution consists of the unfunded actuarial accrued liability, which should provide sufficient resources to pay employee pension benefits when due. The actuarially determined contribution for the Plan for the current year was determined as part of the October 1, 2022 actuarial valuation using the aggregate actuarial cost method. The aggregate actuarial cost method does not identify and separately amortize unfunded actuarial liabilities and therefore, information about funding status and funding progress is presented using the entry age normal cost method for the Plan. NET PENSION. LIABILITY The components of the net pension liability of the Town at September 30, 2023, were as follows: Total Pension Fiduciary Net Pension Net Liability (a)-(b) Description Changes due to Interest Liability (a) Position (b) Balances at September. 30, 2022 - 1,485,446 $ 1,152,412 $ 333,034 106,496 (24,589) (132,388) 106,496 (24,589) (62,090) (140,884) 33,813 (87,254) Differences between expected and actual experience Employer contributions Benefit payments and refunds Net investment income Administrative expenses Total Changes 62,090 (132,388) 140,884 (33,813) 36,773 (50,481) Lcasc vungauvm, uuveimeindr 1,434,965 $ 1,189,185 $ 245,780 Balances at September 30, 2023 The Plan fiduciary net position was 82.89% of the total pension liability as of September 30, 2023. 59 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEIl-DEFINED BENEFIT PENSION PLAN (CONTINUED) NETI PENSION LIABILITY (CONTINUED) Significant. Actuarial Assumptions September 30, 2023, measurement period. The total pension liability was determined by an actuarial valuation as of October 1, 2022 updated to September 30, 2023 using the following actuarial assumptions applied to the Inflation Salary increases Investment rate ofreturn Mortality 2.00% N/A 7.50% Female: Pubs.H-2010 for Healthy Retirees, set forward one year. Male: PubS.H-2010 (Below Median) for Healthy Retirees, set forward one year. Long-Term Expected. Rate of Return 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, 2023, are summarized in the following table: Long-Term Expected Real Rate of Return 5.64% 1.35% Asset Class Equity Fixed income Discount Rate The discount rate used to measure the total pension liability was 7.5 percent. The projection ofcash 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. 60 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTEIl-DEFINED BENEFIT PENSION PLAN (CONTINUED) NETI PENSION LIABILITY (CONTINUED) Sensitivity ofthe Net Pension Liability to Changes in the Discount. Rate The following presents the net pension liabilities of the Town, calculated using the discount rates above, as well as what the Town's net pension liabilities would be ifit were calculated using a discount rate that is one percentage-point lower or one percentage-point higher than the current rate. Current 7.50% 1% Decrease Discount Rate 1% Increase $ 317,004 $ 245,780 $ 183,144 6.50% 8.50% Town's net pension liability PENSION. EXPENSE. AND. DEFERRED OUTFLOWSAND! INFLOWS OF RESOURCES For the fiscal year ended September 30, 2023, the Town recognized pension expense of $54,479. In addition, the Town reported deferred outflows of resources and deferred inflows ofresources related to the Plan from the following sources: Deferred Outflows ofResources $ 59,860 Description Net difference between projected and actual earnings on plan investments The 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, 2024 2025 2026 2027 Amount $ 14,154 9,593 47,774 (11,661) 59,860 $ 61 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 12-OTHER FOSTEMPLOYMENT BENEFITS PLAN DESCRIPTION The Town provides a single employer defined benefit postemployment health care benefit plan to all of its employees. The plan allows its employees and their beneficiaries to continue to obtain health benefits upon retirement. The benefits of the plan are in accordance with Florida Statutes, which is the legal authority for the plan. The plan has no assets and does not issue a separate financial report. CONTRIBUTIONS Currently, the Town follows a pay-as-you-go funding policy, contributing only those amounts necessary to provide for its portion of current year benefit costs and expenses. The Town does not directly make a contribution to the plan on behalf of retirees. Retirees and their beneficiaries pay the same group rates as are charged to the Town for active employees by its healthcare provider. For the fiscal year ended September 30, 2023 there were no retirees receiving other postemployment benefits. Current and future retirees are required to pay 100% of the blended premium to continue coverage under the Town's group health insurance program.. PLANMEMBERSHIP The following table provides a summary of the participants in the plan as of October 1, 2021, the latest valuation date: Active plan members 61 =- - 61 Inactive plan members or beneficiaries currently receiving benefits Inactive plan members or beneficiaries entitled to but not yet receiving benefits OPEB LIABILITY, OPEB EXPENSE, AND DEFERRED OUTFLOWS OF RESOURCES AND At September 30, 2023, the Town reported a total OPEB liability of $115,589. For the fiscal year ended September 30, 2023, the Town recognized OPEB expense of $7,460. As of September 30, 2023, the Town did not report any deferred outflows of resources or DEFERRED INFLOWS OF RESOURCES RELATED TO OPEB deferred inflows ofi resources related to OPEB. 62 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 12-OTHER POSTEMPLOYMENT BENEFTIS/CONTINUED) ACTUARIAL. METHODSANDASSUMPTIONS accordance with the GASB No. 75 methodology. Significant methods and assumptions were as follows: The total OPEB liability was calculated using the Alternative Measurement Method in Valuation date Measurement date Actuarial cost method Inflation Discount rate Retirement rates Mortality tables Healthcare cost trend rates Marital status Healthcare participation CHANGESINASSUMPTIONS October 1,2021 September 30, 2023 Entry Age Cost Method 2.50% 4.87% 100% at age 60 PubG-2010 Mortality Table projected to the valuation date using MP-2019 Initially 7.50%1 trending to 4.00% in 55 years 100% married with male spouses 3 years older than female spouses 20%] participation with 40% electing spouse coverage The discount rate was changed from 4.77% as of the beginning of the measurement period to 4.87% as of September 30, 2023. This change is reflected in the schedule of changes in total OPEB liability. There were no benefit changes during the year. 63 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 12-OTHER POSTEMPLOYMENT BENEFTIS/CONTINUED) TOTAL OPEB LIABILITY The components ofthe total OPEB liability as of September 30, 2023, were as follows: Total OPEB Liability $ 108,129 Balance at September 30, 2022 Changes for the year Service cost Interest cost Benefit payments 10,256 5,472 (863) (7,405) 7,460 115,589 Changes ofassumptions and other inputs Net Change in Total OPEB Liability Balance at September 30, 2023 SENSITIVITYOFTHE TOTAL OPEB. LIABLITYTOCHANGES: IN THE DISCOUNTRATE The following table presents the total OPEB liability of the Town calculated using the single discount rate of4.87% as well as what the Town's total OPEB liability would be ifit were calculated using a discount rate one percentage point lower or one percentage point higher than the current rate. 1.0% Decrease Discount Rate 1.0% Increase $ 124,713 $ 115,589 $ 107,525 3.87% 4.87% 5.87% Total OPEB Liability 64 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 12-OTHER POSTEMPLOYMENT BENEFTIS/CONTINUED) SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE TREND The following table presents the total OPEB liability of the Town calculated using the assumed trend rates (7.50% decreasing to 4.00%) as well as what the Town's total OPEB liability would be ifit were calculated using a trend rate that is one percentage point lower RATES or one percentage point higher than the assumed trend rates. 1.0% Decrease Trend Rates 1.0% Increase to5%) 127,675 (6.5% Decreasing(7.596 Decreasing(8.596 Decreasing to3%) $ 105,195 $ to4%) 115,589 $ Total OPEB Liability NOTE 13-JOINTLY GOVERNED ORGANIZATION The Town, 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 is comprised of one member from each participating entity. Seacoast is an Independent Authority organized under the laws of the State of Florida, and the Town has no participating equity ownership in Seacoast. The Town paid $41,956 to Seacoast during the fiscal year for water and sewer service. NOTE 14-1 RISK MANAGEMENT The Town is exposed to various risks of loss related to torts: theft of, damage to, and destruction ofassets; errors and omissions; and natural disasters for which the Town carries commercial insurance through the Florida League of Cities, Inc., a statewide commercial insurance program. The policy for comprehensive property, casualty and liability insurance provides coverage with a deductible of $5,000 for property and casualty and $25,000 for liability claims per occurrence, with a combined annual cap of $2 million. The Town does not retain any risk of loss under this policy. 65 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 14-1 RISK MANAGEMENT (CONTINUED) Florida Statues limit the Town's maximum loss for most liability claims to $200,000 per person and $300,000 per occurrence under the Doctrine of Sovereign Immunity. However, under certain circumstances, a plaintiff can seek to recover damages in excess of statutory The limits addressed in Florida Statutes do not apply to claims filed inl Federal courts. There have been no significant reductions in insurance coverage in the prior year. No settlements The Town has established a risk management program for workers' compensation where premiums are paid from each department to the Florida League of Cities who fully insures all claims to a statutory level. The Town does not retain any risk of loss under this policy. There were no significant reductions ini insurance coverage from the prior year. The amount of insurance settlements has not exceeded the Town's insurance coverage in any of the The Town currently reports all of its risk management activities in the Insurance 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 limits by introducing a claims bill to the Florida Legislature. exceeded insurance coverage for the past three years. prior three fiscal years. claims that have been incurred but not reported. GRANTS Amounts received or receivable from grantor agencies are subject to audit and adjustment by those agencies, principally Palm Beach County, FEMA, the U.S. Department ofHousing and Urban Development and the State of Florida. Any disallowed claims, including amounts already received, might constitute a liability of the Town for the return of those funds. LITIGATION The Town is a defendant in various lawsuits arising in the ordinary course of normal operations. Although the ultimate outcome of some of these lawsuits cannot be determined at the present time, 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. 66 TOWN OF LAKE PARK, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 15-ADMINISTRATIVECOSTS The General Fund provides the other funds with various management services. Administrative costs totaling $254,147 for the CRA Fund; $113,673 for the Streets and Roads Fund; $397,854 for the Marina Fund; $511,427 for the Sanitation Fund; and $227,345 for the Stormwater Utility Fund were charged for 2023. NOTE 16-DEFICIT! NET POSITION The Town has a net position financial deficit of $1,256,504 in the Marina Fund as of September 30, 2023. This was caused by the Town terminating and repaying a grant agreement for $2,400,000 that placed restrictions on land the grant purchased. The Town is currently negotiating with a developer for the Marina and expects these future payments to offset the deficit. NOTE1 17-INTER-LOCALAGREEMENTS FIRE PROTECTIONAND. EMERGENCY/MEDICALSERVICES The Town opted into the County's Fire-Rescue Municipal Services Taxing Unit ("MSTU") for the provision of fire rescue, fire protection, and related services from the County which commenced on October 1, 2015. The tax for the MSTU is included in the maximum 10 mills the Town is legally allowed to assess. On September 30, 2023, the MSTU millage rate was 3.4581 mills. PALM BEACHO COUNTYSHERIFFSOFFICEINTER-LOCALALAGREEMENT On April 11, 2006, the Town and the Palm Beach County Sheriff's Office entered into an agreement for law enforcement services which commenced October 1, 2005. The seventeenth addendum to the contract extended the term of service from October 1, 2022, thru September 30, 2023, and the Town will pay $3,333,263 in equal monthly installments. The agreement was renewed thru September 30, 2024. 67 REQUIREDSUPPLEMENTARY INFORMATION TOWN OF LAKE PARK, FLORIDA REQUIRED SUPPLEMENTAL INFORMATION RETIRED POLICE OFFICERS RETIREMENT FUND SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS FOR THE FISCAL YEAR ENDED SEPTEMBER30 Last Ten! Fiscal Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Pensionl Liability Service cost Diffèrences between expected: and actual experience Change of assumptions Benefit payments, including refunds ofe employee contributions Net Changei in Total Pension Liability Total Pensionl Liability Beginning Total Pensionl Liability. Ending (A) Plan Fiduciary Net Position Contributions- employer Neti investment income (loss) Benefit payments, including refunds of employee contributions Administrative expenses Net Change in Plan Fiduciary Net Position Plan Fiduciary Net Position Beginning Plan Fiduciary Net Position Ending (B) Net Pensionl Liability (A)-(B) Plan Fiduciary Net Position as A Percentage ofthe Total Pension Liability Change of Assumptions report fors special risk employees. 126,439 $ 124,182 $ 116,219 $ 132,596 $ 131,746 $ 125,696 $ 110,375 $ 107,476 $ 108,046 $ 106,496 (73,829) 206,781 51,891 8,574 (71,972) (197,588) 8,549 32,509 2,980 (24,589) (25,188) (156,529) (156,529) (156,529) (156,529) (148,482) (132,388) (132,388) (132,389) (132,388) (132,388) (30,090) (106,176) 218,362 (15,359) (88,708) (204,280) (38,652) 7,596 (21,362) (50,481) 1,764,115 1,734,025 1,627,849 1,846,211 1,830,852 1,742,144 1,537,864 1,499,212 1,506,808 1,485,446 1,734,025 $ 1,627,849 > 1,846,211 S 1,830,852 $ 1,742,144 $ 1,537,864 $ 1,499,212 1,506,808 $ 1,485,446 $ 1,434,965 52,328 $ 39,097 $ 75,932 $ 80,380 $ 71,508 $ 44,708 $ 36,525 $ 62,090 $ 62,090 $ 62,090 170,788 (3,080) 141,510 142,541 114,653 64,072 72,360 282,473 (192,317) 140,884 (156,529) (156,529) (156,529) (156,529) (148,482) (132,388) (132,388) (132,389) (132,388) (132,388) (15,671) (35,380) (26,578) (29,853) (34,266) (32,329) (40,950) (33,464) (36,500) (33,813) 50,916 (155,892) 34,335 36,539 3,413 (55,937) (64,453) 178,710 (299,115) 36,773 1,423,896 1,474,812 1,318,920 1,353,255 1,389,794 1,393,207 1,337,270 1,272,817 1,451,527 1,152,412 1,474,812 $ 1,318,920 1,353,255 1,389,794 $ 1,393,207 1,337,270 1,272,817 $ 1,451,527 $ 1,152,412 $ 1,189,185 259,213 $ 308,929 492,956 441,058 348,937 200,594 226,395 55,281 333,034 245,780 85.05% 81.02% 73.30% 75.91% 79.97% 86.96% 84.90% 96.33% 77.58% 82.87% For September 30, 2020, as mandated by Chapter 2015-157, Laws ofFlorida, thes assumed rates ofr mortality were changed to ther rates usedi in Milliman's. July 1,2019FRS valuation This schedule is presented asi required by accounting principles, generally accepted in the United States ofA America. TOWN OFI LAKE PARK, FLORIDA REQUIRED SUPPLEMENTAL INFORMATION RETIRED. POLICE OFFICERS' RETIREMENT FUND SCHEDULES OF CONTRIBUTONS. ANDI INVESTMENT RETURNS FOR THE FISCALYEAR ENDED SEPTEMBER30 Last Tenl Fiscal Years Schedule of Contributions Actual Contribution Fiscal Year Ending September 30 2014 2015 2016 2017 2118 2019 2020 2021 2022 2023 Fiscal Year Ending September 30 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Actuarially Determined Contribution $ 52,328 $ 39,097 75,932 80,380 71,508 44,708 36,525 62,090 60,230 34,093 Contribution Contribution N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Deficiency Covered asa percentage Of (Excess) Payroll* covered payroll 52,328 $ 39,097 75,932 80,380 71,508 44,708 36,525 62,090 62,090 62,090 $ - - (1,860) (27,997) Schedule of Investment Returns Annual Money Weighted Rate of Return Net ofInvestment Expense 12.44% -0.22% 11.24% 11.04% 8.72% 4.78% 5.72% 23.31% -14.04% 13.19% * There are no active employees in the Plan in the United States of America. This schedule is presented as required by accounting principles generally accepted 69 TOWN OF LAKE PARK, FLORIDA REQUIRED SUPPLEMENTAL INFORMATION RETIRED POLICE OFFICERS' RETIREMENT FUND NOTES TOTHE SCHEDULE OF CONTRIBUTIONS FORTHE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Siginifcant Methods and Assumptions Used in Calculations of Determined Contributions. The actuarially determined contribution rates are calculated as ofOctober 1, one year prior to the end oft the fiscal year in which contributions are reported. Valuation Date Actuarial Cost Method Amortization Method Amortization Period Asset Valuation Method Inflation Salary increases Investment Rate of Return Mortality 10/01/2022 Entry Age Normal Level dollar amount 15 Market N/A N/A 7.50% Female: RP2000 Generational, 1009Amnuitant White Collar, Scale BB. Male: RP2000 Generational, 10% Annuitant White Collar/90% Annuitant Blue Collar, Scale BB 70 TOWN OF LAKE PARK, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES INTOTAL OPEB LIABILITY FOR THE YEAR ENDED SEPTEMBER: 30 2018 2019 2020 2021 2022 2023 Total OPEBI Liability Beginning Changes for the Year Service cost Interest Differences Between Expected and. Actual Experience Changes of assumptions Benefit payments Net Change in' Total OPEB Liability Total OPEB Liability Ending Covered Employee Payroll Total OPEBI Liability as al Percentage of Covered Employee Payroll $ 119,471 $ 120,655 $ 132,825 $ 123,631 $ 129,194 $ 108,129 9,362 4,555 (5,275) (7,458) 1,184 9,008 5,252 6,021 (8,111) 12,170 14,531 5,086 (450) (18,599) (9,762) (9,194) 13,501 2,854 (3,185) (7,607) 5,563 14,521 3,547 6,063 (37,524) (7,672) (21,065) 10,256 5,472 (863) (7,405) 7,460 120,655 $ 132,825 $ 123,631 $ 129,194 $ 108,129 $ 115,589 2,388,729 $ 2,448,447 $ 2,999,824 $ 3,074,819 $ 3,368,189 $ 3,286,038 5.05% 5.42% 4.12% 4.20% 3.21% 3.52% The plan is funded on aj pay-as-you-go basis and is not administered: as a formal qualifying trust. There werer no plan assets as oft the date of the most recent valuation. Since there are currently no invested plan assets heldi in trust tof finance the Total OPEB liability, the discount rate is the long-term rate ofr return on tax-exempt, high quality municipal bonds based This schedule is presented as required by accounting, principles generally accepted. in the United: States of America, however, until aj full 10-year trendi is compiled, information is ont the daily rate of Fidelity's "20-Yearl Municipal GO. AA Index". presented. for those years available. TOWN OF LAKE PARK, FLORIDA REQUIREDSUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE FORTHE FISCALYEAR ENDED SEPTEMBER: 30, 2023 GENERAL FUND Variance with] Final Budget- Positive (Negative) 194,272 522,589 (513,169) (84,831) 55,249 (250,089) (75,979) Original Budget 6,358,848 747,350 2,092,084 1,701,056 150,700 237,867 11,287,905 Final Budget 6,650,284 $ 6,844,556 $ 626,350 2,152,084 1,681,856 150,700 849,459 12,110,733 Actual Amounts 1,148,939 1,638,915 1,597,025 205,949 599,370 12,034,754 Revenues Taxes Licenses and permits Intergovermental Charges for services Fines andi forfeitures Miscellaneous Totall Revenues Expenditures Current: General government: Legislative Town manager Personnel Town clerk Finance Communications and Grants Legal Information technology Non-departmental Total General Government Public safety Physical environment Transportation Culture and recreation Capital outlay Debt service: Principal Interest charges Totall Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources (Uses) Lease (right-of-use asset) acquired Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balance 166,541 304,345 268,429 275,683 542,418 208,135 160,000 318,003 674,818 2,918,372 4,211,106 767,176 486,616 1,556,508 362,993 87,314 10,390,085 897,820 264,919 (1,162,739) (897,820) 166,541 326,945 309,929 286,675 545,418 208,135 160,000 326,003 1,280,418 3,610,064 4,254,106 807,176 486,616 1,559,908 376,293 87,314 11,181,477 929,256 233,483 (1,162,739) (929,256) 163,748 327,047 310,176 286,762 545,897 201,815 130,170 258,281 762,994 2,986,890 4,636,023 788,559 452,928 1,436,915 393,897 411,527 90,586 11,197,325 837,429 393,897 915,938 (1,162,739) 147,096 984,525 $ 984,525 2,793 (102) (247) (87) (479) 6,320 29,830 67,722 517,424 623,174 (381,917) 18,617 33,688 122,993 (393,897) (35,234) (3,272) (15,848) (91,827) (393,897) (682,455) (682,455) See notes to budgetary comparison schedule. 72 TOWN OF LAKE PARK, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE- COMMUNITY REDEVELOPMENT FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Variance with Final Budget Positive Budgeted Amounts Original Actual Final Amounts (Negative) Revenues Intergovernmental Transfer from General Fund Balance brought forward Total Revenues Expenditures Economic environment Capital outlay Grants and aids Transfers Total Expenditures Net Change in Fund Balance $631,382 $ 631,382 $ 621,952 $ (9,430) 1,162,739 1,162,739 1,162,739 1,828,121 1,887,533 1,784,691 887,915 947,327 329,500 329,500 387,223 387,223 223,483 223,483 1,828,121 1,887,533 1,267,800 34,000 93,412 (93,412) (102,842) 157,835 319,080 93,224 49,594 619,733 789,492 10,420 293,999 173,889 $ 516,891 $ 516,891 See notes to the budgetary comparison schedule. 73 TOWN OF LAKE PARK, FLORIDA REQUIREDSUPPLEMENTARY INFORMATION NOTE TO BUDGETARY COMPARISON SCHEDULES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE1-E BUDGETARY ACCOUNTING An appropriated budget has been legally adopted for the General Fund and Community Redevelopment Fund on the same modified-accrual basis used to reflect revenue and expenditures. The Town follows these procedures in establishing the annual budget: Prior to September 1, the Town Manager submits to the Town Commission a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted at the Town Hall to obtain taxpayer comments. The Town advises the Palm Beach County Tax Collector's office of the proposed millage rate, the rolled back millage rate and the day, time and place of the public A public hearing is held to obtain taxpayer input and to adopt the final budget and Af final operating budget and related millage rates are legally enacted through the Changes or amendments to the total budgeted expenditures of funds the must be approved by the Town Commission. Accordingly, the legal level of control is at the fund hearing for budget acceptance. millage rate. passage ofar resolution. level. Allu unencumbered balances lapse at the end of each fiscal year. NOTE2-I EXPENDITURES OVER APPROPRIATIONS There were: no expenditures in excess ofa appropriations at the fund level. 74 COMBINING FUND FINANCIALSTATEMENTS SUPPLEMENTARY INFORMATION) TOWN OF LAKE PARK, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2023 Special Revenue Funds Special Fund Capital Projects Fund Capital Totall Nonmajor Projects Governmental Bond] Fund 16,593 $ 1,529,361 Debt Service Fund Public Improvement Projects Fund 118,065 Streets & Roads Fund Funds 118,065 133,401 500 Assets Cash and cash equivalents Accounts receivable, net Due from other governments Prepaids Total Assets Liabilities and Fund Balances Liabilities Accounts payable Accruedi items Unearned revenue Due toc other funds Totall Liabilities Fund Balances Nonspendable: Prepaids Restricted for: Debts service Publici improvements Infrastructure Capital projects Unassigned Totall Fund Balances Totall Liabilities and Fund Balances $ 170,086 $ 255,010 $ 1,087,672 $ 101,080 32,321 500 170,086 $ 373,075 $ 1,188,752 $ 32,821 $ 16,593 $ 1,781,327 31,943 $ 276,725 $ 9,186 $ $ 317,854 3,896 11,209 76,743 409,702 500 170,086 341,132 912,027 16,593 (68,713) 3,896 11,209 76,743 101,034 500 31,943 276,725 170,086 341,132 912,027 912,027 16,593 16,593 1,371,625 (68,713) (68,213) 170,086 341,132 170,086 $ 373,075 $ 1,188,752 $ 32,821 $ 16,593 $ 1,781,327 75 TOWN OF LAKE PARK, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 Special Revenue Funds Special Fund $ 883,943 $ 129,449 40,000 1,053,392 3,472 658,815 662,287 391,105 520,922 Debt Fund Public Fund 274,779 274,779 Streets & Roads Fund 398,502 33 398,535 Capital Total Nonmajor Projects Governmental Bond Fund Funds - $ 883,943 527,951 314,812 1,726,706 3,472 405,320 458,427 866,936 1,734,155 (7,449) 1,379,074 Service Improvement Projects Revenues Taxes Intergovermmental Miscellaneous Totall Revenues Expenditures Current: General government Economic Environment Transportation Capital outlay Totall Expenditures Net Changes in Fundl Balances Fundl Balances- Beginning Fund Balances Ending 405,320 206,183 611,503 (336,724) 677,856 458,427 1,938 460,365 (61,830) (6,383) 170,086 16,593 170,086 $ 341,132 $ 912,027 $ (68,213) $ 16,593 $ 1,371,625 76 STATISTICAL SECTION TOWN OF LAKE PARK, FLORIDA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) UNAUDITED Fiscal Year 2016 506,653 1,010,808 2014 364,900 (195,039) 2015 404,094 419,594 2017 1,029,677 1,356,118 2018 1,509,135 1,178,588 Governmental. Activities Neti investment: inc capital assets Restricted Unrestricted 2,837,379 $ 3,142,197 $ 3,205,414 $ 3,862,515 $ 5,431,953 3,007,240 $ 3,965,885 $ 4,722,875 $ 6,248,310 $ 8,119,676 4,662,043 $ 4,909,675 $ 4,690,541 $ 4,506,945 $ 4,566,524 5,269,334 $ 5,260,492 $ 5,225,803 $ 4,854,863 $ 5,229,222 7,499,422 $ 8,051,872 $ 7,895,955 $ 8,369,460 $ 9,998,477 8,276,574 $ 9,226,377 $ 9,948,678 $ 11,103,173 $ 13,348,898 Total Governmental. Activities Net Position Business-Type. Activities Neti investment: inc capital assets Restricted Unrestricted 607,291 350,817 535,262 347,918 662,698 Totall Business-Type. Activities Net Position Primary Government Neti investment in capital assets Restricted Unrestricted 364,900 412,252 404,094 770,411 506,653 1,546,070 Fiscal Year 2021 3,743,532 1,501,051 1,029,677 1,704,036 1,509,135 1,841,286 Totall Primary Government: Netl Position 2019 2,028,528 1,464,835 2020 4,511,884 1,504,174 2022 3,485,741 4,659,622 2023 3,543,171 6,003,711 Governmental. Activities Neti investment in capital assets Restricted Unrestricted 5,809,108 $ 5,822,996 $ 6,733,248 $ 7,040,813 $ 8,178,523 9,302,471 $ 11,839,054 $ 11,977,831 $ 15,186,176 $ 17,725,405 4,813,499 $ 4,766,405 $ 7,119,055 $ 10,163,404 $ 10,313,828 5,519,984 $ 5,554,862 $ 8,055,715 $ 8,166,308 $ 7,447,369 10,622,607 $ 10,589,401 $ 13,852,303 $ 17,204,217 $ 18,492,351 14,822,455 $ 17,393,916 $ 20,033,546 $ 23,352,484 $ 25,172,774 Total Governmental. Activities Net Position Business-Type. Activities Neti investment: inc capitala assets Unrestricted Totall Business-Type. Activities! Net Position Primary Government Neti investment: in capitala assets Restricted Unrestricted 706,485 788,457 936,660 (1,997,096) (2,866,459) 2,028,528 2,171,320 4,511,884 2,292,631 3,743,532 2,437,711 3,485,741 2,662,526 3,543,171 3,137,252 Total Primary Government: Net Position 77 TOWN OF LAKE PARK, FLORIDA CHANGES IN NET POSITION LASTTEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) - UNAUDITED Fiscal Year 2018 2019 2014 2015 2016 2017 2020 2021 2022 2023 Expenses Governmental. Activities General government Public safety Physical environment Iransportation Culture and recreation Ewconomic environment Interest on long-term debt Total Governmental Activities Expenses Business-Type. Activities Marina Sanitation Stormwater Totall Business-Type. Activities Expenses Total Primary Government Expenses 1,608,593 $ 1,622,346 $ 2,119,258 $ 2,379,266 $ 1,897,797 $ 1,796,253 $ 2,114,917 $ 1,929,635 $ 2,131,579 $ 3,246,177 4,749,126 4,927,037 3,460,558 3,616,758 3,769,881 3,890,768 3,987,837 4,211,942 5,529,482 4,636,567 268,706 279,885 313,900 337,601 243,451 369,636 250,097 388,350 567,812 789,540 564,501 589,970 566,643 572,008 573,583 627,123 738,997 819,468 931,643 1,152,078 815,290 842,876 859,896 937,507 1,017,475 1,139,623 1,150,406 843,683 995,026 1,510,035 276,467 233,655 191,384 147,633 111,880 120,502 120,947 119,915 100,106 114,884 8,322,588 8,497,198 7,515,564 7,990,773 8,073,484 8,507,277 9,149,474 9,144,676 11,667,127 12,938,092 1,600,962 1,728,929 1,664,332 1,854,387 1,703,023 1,885,821 1,768,741 2,375,706 4,975,478 2,265,025 1,152,304 1,163,127 1,205,728 1,365,725 1,282,784 1,422,337 1,746,142 2,076,764 1,979,857 2,746,651 402,905 335,711 392,237 364,367 386,464 575,569 596,912 704,635 643,893 839,980 3,156,171 3,227,767 3,262,297 3,584,479 3,372,271 3,883,727 4,111,795 5,157,105 7,599,228 5,851,656 11,478,759 $ 11,724,965 $ 10,777,861 $ 11,575,252 $ 11,445,755 $ 12,391,004 $ 13,261,269 $ 14,301,781 $ 19,266,355 $ 18,789,748 39,905 1,429 3,925 459,417 563,372 786,273 831,683 1,411,479 1,488,811 TOWN OF LAKE PARK, FLORIDA CHANGES IN NET POSITION (CONTINUED) LASTTEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) - UNAUDITED Fiscal Year 2018 2019 2014 2015 2016 2017 2020 2021 2022 2023 Program Revenues Governmental. Activities Charges for services General government Publics safety Physical environment Transportation Culture andi recreation Operating contributions and grants General government Public safety Physical environment Transportation Culture andi recreation Economicl Environment Capital contributions and grants General government Publics safety Physical environment Iransportation Culture andi recreation Total Governmental. Activities Program Revenues Business-Type. Activities Charges for services Marina Sanitation Stormwater Operating contributions and grants Marina Sanitation Stormwater Capital contributions and grants Marina Stormwater Totall Business-Type. Activities Program Revenues Total Primary Government Program Revenues $ 82,406 $ 89,112 $ 111,930 $ 109,601 $ 123,425 $ 112,775 $ 113,464 $ 108,933 $ 551,899 $ 1,220,633 778,395 762,073 873,864 1,068,425 1,048,644 1,033,888 1,434,668 1,299,583 3,626,388 1,504,556 205,949 14,389 1,600,000 564,595 1,113 975,642 77,497 19,399 3,606 180,000 16,781 3,379 84,208 31,056 27,680 46,549 52,827 290 16,995 26,740 35,577 71,845 3,980 51,573 33,660 37,409 15,592 14,018 146,257 64,714 505,770 20,775 4,919 11,725 75,014 8,248 33,960 1,829,673 25,007 50,056 55,223 27,009 27,819 323,233 60,354 39,844 1,679,304 1,367,021 3,682,669 1,670,147 6,610,985 1,475,452 1,584,076 1,328,429 1,624,539 1,909,905 3,517 9,024 2,470 9,230 4,951 7,116 24,221 18,642 45,416 19,245 19,822 23,997 1,696,560 1,768,552 1,739,770 1,904,997 1,892,574 9,065 56,726 251,920 768,853 769,833 920,992 918,803 964,669 129,449 1,015,005 971,702 1,091,694 1,508,884 7,299,473 6,856,503 11,326,554 7,788,633 17,989,118 4,641,986 1,105,139 1,357,287 1,340,328 1,403,726 1,445,086 1,672,392 1,707,491 1,691,438 489,396 487,537 487,878 505,642 79,162 43,919 38,396 100,000 139,437 1,855,256 11,286 31,625 288,999 9,454 61,449 1,933,100 15,614 2,155,778 1,580,413 1,010,117 5,123 3,039,621 3,517,216 3,535,697 3,600,806 122,073 342,372 115,459 2,255,778 1,719,850 4,803,596 4,054,626 4,488,918 4,627,391 $ 5,109,690 7,421,546 > 7,198,875 11,442,013 10,044,411 19,708,968 9,445,582 79 TOWN OF LAKE PARK, FLORIDA CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) UNAUDITED Fiscal Year 2018 2019 2014 2015 2016 2017 2020 2021 2022 2023 Net (Expense). Revenue Governmental activities Business-type: activities Total Primary Government Net Expense General Revenues and Other Changes in! Net Position Governmental activities Taxes Property taxes Infrastructure surtax Franchise fees Utility service taxes Local option gas taxes Communication sales tax Intergovernmental, unrestricted Gain on sale of surplus property Miscellaneous revenue Investment earnings Transfers Total Governmental. Activities Business-Type Activities Investment earnings Gain ons sale ofe equipment Miscellaneous revenues Transfers Total Business-Type. Activities Totall Primary Government Changes inl Net Position Governmental activities Business-type activities Total Primary Government ( (7,307,583) $ (7,525,493) $ (6,423,870) $ (6,481,889) $ (6,394,177) $ (7,140,256) $ (5,466,805) $ (7,474,529) $ (5,056,142) $ (8,296,106) $(7,424,133) $ (7,236,024) S (6,150,470) $ (6,465,562) S (5,681,249) S (6,536,147) $ (5,471,993) $ (5,916,132) $ (6,168,372) S (9,344,166) (116,550) 289,469 273,400 16,327 712,928 604,109 (5,188) 1,558,397 (1,112,230) (1,048,060) 4,554,358 $ 4,839,895 $ 3,496,377 $ 3,791,642 $ 3,644,561 $ 3,443,832 $ 3,721,481 $ 4,012,875 $ 4,234,082 $ 5,324,494 651,664 598,424 605,622 627,219 632,237 634,652 594,844 635,073 723,836 858,102 926,495 952,772 975,706 1,006,475 1,025,980 1,037,613 1,018,200 1,042,374 1,135,538 1,283,912 236,922 251,894 257,756 269,595 266,361 269,924 240,713 249,902 262,118 268,030 324,291 315,322 286,682 276,237 278,915 274,449 274,183 262,334 269,188 288,294 1,093,000 1,196,655 1,222,771 1,282,459 1,357,344 1,423,061 1,435,228 1,624,209 1,877,912 1,418,852 389,411 620,736 644,946 610,154 713,453 853,456 883,943 320,000 49,749 200,907 12,705 20,104 25,946 54,286 47,015 219,825 108,585 14,925 121,952 542,395 (941,839) (1,213,595) (233,594) 199,420 303,078 310,000 310,000 411,877 325,000 7,998,855 8,798,144 7,180,860 8,007,324 8,285,026 8,323,051 8,003,388 7,613,306 8,264,487 10,835,335 814 4,767 1,911 3,609 5,720 74,152 11,653 4,331 35,735 617 2,751 16,675 56,543 22,309 (199,420) (303,078) (310,000) (310,000) (411,877) (325,000) 941,839 1,213,595 233,594 (198,606) (298,311) (308,089) (306,391) (332,005) (313,347) 40,066 942,456 1,222,823 329,121 7,800,249 $ 8,499,833 $ 6,872,771 $ 7,700,933 $ 7,953,021 $ 8,009,704 $ 8,043,454 $ 8,555,762 $ 9,487,310 $11,164,456 691,272 $ 1,272,651 $ 756,990 $ 3,208,345 $ 1,890,849 $ 1,182,795 $ 2,536,583 $ 138,777 $ 3,208,345 $ 2,539,229 376,116 $ 1,263,809 722,301 $ 3,318,938 S 2,271,772 $ 1,473,557 $ 2,571,461 $ 2,639,630 3,318,938 $ 1,820,290 (315,156) (8,842) (34,689) 110,593 380,923 290,762 34,878 2,500,853 110,593 (718,939) 80 TOWN OF LAKE PARK, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS (ACCRUAL BASIS OF ACCOUNTING) UNAUDITED LAST TEN FISCAL YEARS Fiscal Year 2016 2014 33,826 544,245 2015 2017 2018 580,059 10,000 5,900 1,509,094 2,105,053 1,283 1,499,135 73,977 10,004 (115,053) 1,469,346 2023 3,353,381 478,442 194,623 2,497,141 6,523,587 5,122 3,507,685 98,194 (68,713) 3,542,288 Generall Fund Nonspendable Restricted Assigned Subsequent year's expenditures Unassigned Total General Fund AIIC Other Governmental Funds Nonspendable Restricted Assigned Subsequent year's expenditures Special revenue funds Capital projects funds Unassigned Total AlI Other Governmental Funds $ 367,260 $ 755,709 $ 700,452 $ 647,423 $ 10,316 36,458 563,362 10,000 65,355 881,030 10,000 47,786 1,179,607 945,331 $ 1,365,845 $ 1,656,837 $ 1,884,816 $ $ 331,074 21,418 (253,889) 98,603 $ 562,434 395 $ 1,023,816 70,954 301,084 (247,851) 414,536 253,325 (105,427) 509,239 7,500 206,196 (58,769) 664,166 $ 1,148,398 $ Fiscal Year 2021 2019 2020 2022 875,420 294,429 959,350 Generall Fund Nonspendable Restricted Assigned Subsequent year's expenditures Unassigned Total General Fund AllOther Governmental Funds Nonspendable Restricted Assigned Subsequent year's expenditures Special revenue funds Capital projects funds Unassigned Total All Other Governmental Funds $ 513,597 $ 900,294 $ 991,153 $ 3,409,863 $ 10,000 43,458 1,723,974 10,000 67,436 1,287,644 10,000 104,129 1,388,478 2,291,029 $ 2,265,374 $ 2,493,760 $ 5,539,062 $ $ 1,680 $ 2,018,528 712 $ 3,733,532 39 16,107 (358,920) 5,966 $ 3,445,326 16,009 26,477 (543,117) 4,501,884 (39,144) (163,353) 1,981,064 $ 4,338,531 $ 3,391,470 $ 2,950,661 $ 81 TOWN OF LAKE PARK, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) UNAUDITED Fiscal Year 2018 2019 2014 2015 2016 2017 2020 2021 2022 2023 Revenues Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Miscellaneous Total Revenues Expenditures General government Public safety Physical environment Transportation Culture and recreation Economic environment Capital outlay Debt service Principal Interest Grants and aid Totall Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Lease (right-of-use asset) acquired Total Other Financing Sources (Uses) Net Changei in Fund Balances Debt Service as a Percentage of! Non-Capital Expenditures 6,132,517 $ 6,391,091 $ 5,077,705 $ 5,814,747 $ 5,923,514 $ 5,761,043 $ 5,944,679 $ 6,403,775 $ 6,946,912 $ 7,728,499 537,298 622,763 732,567 727,048 820,631 761,108 707,998 1,089,750 3,420,988 1,148,939 1,742,766 1,827,646 1,821,757 1,971,076 2,469,253 2,239,661 2,137,834 2,548,901 4,662,682 3,764,461 347,788 408,911 345,977 365,978 411,005 437,528 1,228,671 1,622,555 1,751,466 1,597,025 80,929 100,810 290,900 159,231 220,336 685,695 193,156 152,691 205,949 9,072,977 9,801,721 8,241,465 9,357,624 9,976,870 9,843,240 12,705,085 11,953,784 17,750,718 15,441,240 1,459,677 1,610,692 1,812,849 2,285,666 1,979,986 1,987,217 2,281,813 2,612,970 3,067,165 2,990,362 4,754,459 4,926,858 3,458,641 3,612,914 3,769,659 3,872,115 3,987,837 4,211,378 5,528,944 4,636,023 269,391 277,727 307,054 329,059 241,094 364,034 619,952 574,401 765,995 788,559 488,139 477,058 480,458 472,046 509,351 528,708 685,850 776,439 831,092 911,355 718,737 709,111 701,248 803,814 913,563 1,019,952 1,061,868 991,331 1,151,398 1,436,915 122,795 111,467 222,166 338,565 1,113,065 2,247,676 465,347 1,247,277 752,054 1,271,253 904,943 915,002 948,039 982,074 646,531 286,450 361,702 364,238 479,084 411,527 283,903 241,454 199,556 156,080 116,019 92,701 122,631 120,903 101,147 90,586 9,041,949 9,270,798 8,133,936 8,980,218 9,748,685 10,962,225 10,189,624 11,649,557 13,849,761 14,025,391 31,028 530,923 107,529 377,406 228,185 (1,118,985) 2,515,461 304,227 3,900,957 1,415,849 846,898 1,304,254 993,767 1,084,848 1,167,729 1,258,334 979,739 1,073,969 1,146,179 2,078,677 (647,478) (950,832) (683,767) (774,848) (857,729) (933,334) (979,739) (2,015,808) (2,359,774) (2,312,271) 167,991 144,617 470,381 162,649 187,875 193,236 423,564 2,000,208 95,647 815,979 996,367 39,905 1,429 3,925 459,417 563,372 602,624 750,620 1,172,882 1,194,812 293,999 393,897 199,420 353,422 310,000 310,000 310,000 325,000 (941,839) (1,213,595) 160,303 230,448 $ 884,345 $ 417,529 $ 687,406 $ 538,185 $ (793,985) $ 2,515,461 $ (637,612) $ 2,687,362 $ 1,576,152 13.33% 12.63% 14.50% 13.17% 8.83% 4.35% 4.98% 4.66% 4.43% 4.03% 82 TOWN OF LAKE PARK, FLORIDA GOVERNMENTAL FUNDS TAX: REVENUES BY SOURCE (ACCRUAL BASIS OF ACCOUNTING) UNAUDITED LAST TEN FISCAL YEARS Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 Property Franchise Taxes 4,839,895 3,496,377 3,791,642 3,644,561 3,441,936 4,146,404 4,012,875 4,234,082 5,324,494 Service Taxes 952,772 975,706 Services Taxes 315,322 286,682 Sales Tax 650,565 673,639 Fees 598,424 605,622 627,219 1,006,475 632,237 1,025,980 634,652 1,037,613 594,844 1,018,200 635,073 1,042,374 723,836 1,135,538 858,102 1,283,912 Totals $ 7,062,370 7,356,978 6,038,026 6,901,918 6,745,923 7,306,889 7,444,715 8,124,271 9,571,700 2014 $ 4,554,358 $ 651,664 $ 926,495 $ 324,291 $ 605,562 276,237 1,067,305 (1) 6,768,878 278,915 1,320,225 274,449 1,357,273 274,183 1,273,258 262,334 1,492,059 269,188 1,761,627 288,294 1,816,898 (1)In 2017 the Infrastruture Surtax started, which is an additional localy approved sales tax. 83 TOWN OF LAKE PARK, FLORIDA GENERAL GOVERNMENTAL REVENUE BY SOURCE LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) UNAUDITED Annual Percentage Increase (Decrease) 3.30% 8.90% -15.80% 13.10% 6.40% 13.40% 8.90% -5.90% 48.50% -13.00% Licenses and Charges for Fines and Other Financing Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 Inter- Taxes Permits governmental Services Forfeitures Miscellaneous Sources Total 2014 $ 6,132,517 $ 537,298 $ 1,742,766 $ 347,788 $ 167,991 $ 144,617 $ 251,300 $ 9,324,277 6,391,091 5,077,705 5,814,747 5,923,514 5,761,043 5,944,679 6,403,775 1,089,750 6,946,912 3,420,988 7,728,499 1,148,939 622,763 732,567 727,048 820,631 761,108 707,998 1,827,646 1,821,757 1,971,076 2,469,253 2,239,661 2,137,834 1,228,671 2,548,901 1,622,555 4,662,682 1,751,466 3,764,461 1,597,025 408,911 345,977 365,978 411,005 437,528 80,929 100,810 290,900 159,231 220,336 685,695 193,156 152,691 205,949 470,381 162,649 187,875 193,236 2,000,208 95,647 815,979 996,367 353,422 10,155,143 310,000 8,551,465 310,000 9,667,624 310,000 10,286,870 423,564 1,819,679 11,662,919 12,705,085 11,953,784 17,750,718 15,441,240 TOWN OF LAKE PARK, FLORIDA ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS UNAUDITED Centrally Total Direct Tax Real Property Year Personal Property Assessed Assessed Value Property for Operations Tax Rate Total Taxable Value (1) Residential Commercial 2014 $ - 199,990,131 $244,391,470 $ 34,480,712 $ 1,079,128 $ 479,941,441 10.4705 $ 479,941,441 10.3455 523,385,701 10.2335 575,999,306 9.4730 626,038,321 8.8055 665,642,357 8.8055 723,230,353 8.8055 776,206,028 8.8055 895,475,095 8.8055 910,468,649 8.6451 1,028,721,290 2015 2016 2017 2018 2019 2020 2021 2022 2023 225,062,210 262,052,591 34,999,307 247,734,289 290,478,840 36,381,709 271,762,954 318,484,359 34,296,329 290,066,574 339,045,111 34,962,598 316,637,931 365,505,348 39,530,880 340,559,805 391,381,387 42,715,405 390,842,528 459,138,779 43,912,976 403,132,350 457,296,345 48,316,946 456,221,141 510,951,280 59,722,159 1,271,593 523,385,701 1,404,468 575,999,306 1,494,679 626,038,321 1,568,074 665,642,357 1,556,194 723,230,353 1,549,431 776,206,028 1,580,812 895,475,095 1,723,008 910,468,649 1,826,710 1,028,721,290 (1). Florida state law requires all property to be assessed at current fair market value. Accordingly, the estimated actual value is equal to the Total Assessed Value. Source: Palm Beach County Property Appraiser. TOWN OF LAKE PARK, FLORIDA DIRECT AND OVERLAPPING PROPERTY TAX RATES LASTTEN FISCAL YEARS RATE PER $1,000 OF ASSESSED VALUE UNAUDITED Overlapping Property Tax Rates-(1) Palm Beach County General (2)Fire Overlapping Property Tax Rates-(1) Palm Beach County Schooll District Palm Beach General Total County Town ofLake Park Property Tax Rates (2) General Tax Operating Obligation Total' Town Operating Obligation Rescue Total County Operating Obligation School Special Year Millage Debt Service Millage Millage Debt Service MSTU Millage Millage Debt Service Millage Districts Total 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 8.8055 1.6650 10.4705 4.7815 0.1914 4.9729 7.5940 7.5940 2.1732 25.2106 7.5120 2.0974 21.4245 7.0700 1.9453 24.1630 6.7690 1.7818 22.9261 6.5720 1.6920 21.9675 7.1640 1.6873 22.5148 7.0100 1.6753 22.3032 6.8750 1.6386 22.1340 6.5190 1.5390 21.6074 6.4570 1.4258 21.2071 5.3474 1.5400 6.8874 4.7815 0.1462 3.4581 4.9277 7.5120 5.3474 1.4280 6.7754 4.7815 0.1327 3.4581 8.3723 7.0700 5.3474 0.6675 6.0149 4.7815 0.1208 3.4581 8.3604 6.7690 5.3474 5.3474 5.3474 5.3474 5.3474 5.3474 5.3474 4.7815 0.1165 3.4581 8.3561 6.5720 = 5.3474 4.7815 0.0765 3.4581 8.3161 7.1640 5.3474 4.7815 0.0309 3.4581 8.2705 7.0100 5.3474 4.7815 0.0334 3.4581 8.2730 6.8750 5.3474 4.7150 0.0289 3.4581 8.2020 6.5190 5.3474 4.5000 0.0188 3.4581 7.9769 6.4570 Note: All millage rates are based on $1 for every $1000 ofa assessed value Source: Notice of Ad' Valorem Taxes andl Non-Ad Valorem Assessments (1 Overlapping rates are those ofl local and county governments that apply to property owners within the Towr ofLake Park. Not all overlapping rates applyt toa all Town property owners (i.e. The rates fors special district apply only to thej proportion ofthe government's property owners whose property isl located withint th (2 Starting with tax year 2015, rathert than paying fori fire services the Towne entered into al Municipal Services Taxing Unit (MTSU) with Palml Beach County Fire/Rescue who will receive thet taxes directly. geographic boundaries ofthes special district.). 8 TOWN OF LAKE PARK, FLORIDA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR. AND NINE YEARS AGO UNAUDITED 2023 Taxable Assessed Valuation 42,199,993 $ 22,553,841 23,301,167 19,192,325 20,229,891 16,865,912 15,126,768 14,681,788 14,590,945 12,004,447 Percentage of Total Taxes Levied 5.40% 3.82% 0.40% 2.54% 2.39% 1.74% 2.47% 1.93% 1.42% 1.74% 23.86% Taxes 288,408 203,653 21,187 135,381 127,594 92,996 132,055 103,104 75,683 92,891 Rank 1 2 3 4 5 6 7 8 9 10 Mariners Key Owner) LLC Wal Mart Stores East LP Florida Power & Light Co SCI Lake Park Associates, LLLP Mullinax Ford ofPBC, LLC Earl Stewart LLC Lakel Park Square Joint Venture Kelsey Industrial, LLC ASVRF Silver Beach Road] LLC Northlake Square East LLC Totals 200,747,077 $ 1,272,951 Source: Palm Beach County Property Appraiser. 2014 Taxable Assessed Valuation 23,627,361 $ 14,064,427 10,134,771 9,559,895 9,000,000 7,308,226 7,236,884 7,120,358 7,058,280 7,016,766 Percentage of TotalTaxes Levied 4.67% 2.93% 1.97% 1.99% 1.88% 1.52% 1.49% 1.48% 1.47% 1.46% 20.86% Taxes 234,852 147,262 98,819 100,097 94,235 76,510 74,923 74,554 73,904 73,476 Rank 1 2 3 4 5 7 6 8 9 10 Lakel Park Owner LLC Wall Mart Stores East] LP Mullinax Ford of] PBC, LLC Lake Park Square Joint Venture Trust Lake Park LTD Northlake Square East LLC Kelsey Industrial, LLC Congress Avenue Properties LTD Earl Stewart' Toyota Twin City Investors, Inc Totals 102,126,968 $ 1,048,632 Source: Palm Beach County Property Appraiser. Note: Assessed values are established by the Palm Beach County Property Appraiser's office as of. January Ist of each year. 87 TOWN OF LAKE PARK, FLORIDA PROPERTY TAXLEVIES AND COLLECTIONS LAST TEN FISCAL YEARS UNAUDITED Amount of Percent of Amount of Total Current Taxes Current Taxes Delinquent Taxes Tax Tax] Levy Collected(I) Collected (I) Collected 5,025,228 $ 4,550,477 90.6% $ 8,107 2014 Total Ratio ofTotal Accumulated Ratio of Collected Taxes Collected Delinquent Delinquent Taxes Year for the Year to Current Levy Taxes toCurrent Levy Tax Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 4,558,584 2,578,304 3,509,729 3,758,414 3,644,871 3,450,008 3,728,742 4,013,114 4,237,696 4,706,707 90.7% 71.5% 89.9% 99.8% 102.4% 89.2% 89.8% 91.2% 87.0% 0.0% 3,604,768 2,577,893 71.5% 3,905,670 3,460,856 88.6% 3,767,181 3,720,816 98.8% 3,559,456 3,633,065 102.1% 3,867,402 3,436,942 88.9% 4,150,684 3,725,509 89.8% 4,398,525 4,004,424 91.0% 4,868,640 4,236,588 87.0% 5,335,978 4,702,805 88.1% 411 2015 48,873 2016 37,598 2017 11,806 2018 13,066 2019 3,233 2020 8,690 2021 1,108 2022 3,902 2023 - = (1)Includes discount taken for early payment of property taxes. Source: Palm Beach County Property Appraiser. hmmhss,himTsNTAsasDashiaRcsar 8 TOWN OF LAKE PARK, FLORIDA RATIOS OF OUISTANDING DEBT BY1 TYPE LASTTENFISCAL YEARS UNAUDITED Governmental. Activities Business-type Activities Primary Government Percent OfAverage Household Per Percentage Total ofTaxable Total Business- Total General Marina Fiscal Obligation Lease Loans Lease (Right- Governmental Value Per Revenue Loans Lease type Primary Year Bonds Obligations Payable of-use asset) Activities ofProperty Capita Bonds Payable Obligations Activities Government Population Income Capita 2014 $2,444,756 $ 2015 1,782,535 2016 1,088,763 2017 371,249 2018 2019 2020 2021 2022 2023 3,469,381 $ 3,216,600 2,962,333 2,697,456 2,422,491 1,494,679 2,136,041 1,431,057 1,837,961 1,377,012 1,527,767 1,320,013 1,105,682 5,914,137 1.23% 707.43 $ 3,830,000 $ 948,963 4,999,135 0.96% 591.75 3,705,000 757,064 4,051,096 0.70% 468.88 3,575,000 1,070,087 3,068,705 0.49% 354.97 3,490,000 885,400 2,422,491 0.36% 281.52 3,320,000 694,447 3,630,720 0.50% 426.89 3,140,000 1,121,553 4,778,963 $ 10,693,100 8,360 2.63% 1,279.08 4,462,064 9,461,199 8,448 2.45% 1,119.93 4,645,087 8,696,183 8,640 1.97% 1,006.50 4,375,400 7,444,105 8,645 1.86% 861.09 4,014,447 6,436,938 8,605 1.46% 748.05 4,261,553 7,892,273 8,505 1.73% 927.96 3,269,018 0.42% 382.07 2,955,000 776,077 204,365 3,935,442 7,204,460 8,556 1.36% 842.04 2,904,779 0.32% 321.08 2,765,000 541,851 155,806 3,462,657 6,367,436 9,047 1.14% 703.82 2,425,695 0.27% 270.12 2,565,000 320,597 105,597 2,991,194 5,416,889 8,980 0.99% 603.22 1,259,919 769,721 378,425 2,408,065 0.23% 268.04 2,365,000 1,071,439 53,681 3,490,120 5,898,185 8,984 1.20% 656.52 Note: Details about the Town's outstanding debt can bef foundi in the notes to the financial statements. TOWN OF LAKE PARK, FLORIDA RATIOS OF GENERAL BONDED DEBT OUTSTANDING AS OF SEPTEMBER 30, 2023 UNAUDITED Percentage of Estimated Actual Taxable Value of Property 0.49% 0.32% 0.17% 0.04% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% General Bonds Less: Amounts Service Fund Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 Obligation Available in Debt Per Capita 282 200 114 26 -- -- Total 2014 $ 2,444,756 $ 90,898 $ 2,353,858 94,030 106,900 146,225 1,782,535 1,088,763 371,249 1,688,505 981,863 225,024 90 TOWN OF LAKE PARK, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIESI DEBT AS OF SEPTEMBER 30, 2023 UNAUDITED Estimated (1) Estimated (1) Percentage Applicable to Town of Overlapping Lake Park Share of Direct and Debt Debt Outstanding Governmental Unit Overlapping Debt Direct Debt- - Town ofLake Park General obligation bonds Loans and lease obligations $ 100.00% $ 100.00% 2,029,640 2,029,640 16,370,000 3,314,000 19,684,000 2,029,640 2,029,640 855,526 173,196 1,028,721 3,058,361 8,984 340 Other Debt Palm Beach County Palm Beach County School Board 5.23% 5.23% Total Direct and Overlapping Debt Estimated town population Total Per Capita $ (1) Estimates based oni ratio of assessed taxable values. Source: Finance Department, Town ofLake Park, Florida Palm Beach County Property Appraiser School Board of Palm Beach County 91 TOWN OF LAKE PARK, FLORIDA PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS UNAUDITED Marina Revenue Bonds Net Revenue Available for DebtService Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 Gross Revenue Operating Expense (1) Debt Service (2) Coverage 315,713 315,713 314,150 317,325 279,513 284,412 282,213 281,663 285,963 277,963 2014 $ 1,157,019 $ 940,047 $ 216,972 $ 0.69 1.21 1.36 0.77 1.6 1.32 0.69 0.61 -7.15 1.23 1,357,287 1,340,329 1,403,726 1,475,452 1,607,079 1,330,386 1,923,192 2,311,840 1,993,665 974,610 911,991 1,157,953 1,028,588 1,231,365 1,134,523 1,751,749 4,355,762 1,653,138 382,677 428,338 245,773 446,864 375,714 195,863 171,443 (2,043,922) 340,527 (1) Expense is exclusive of depreciation. (2) Includes principal and interest ofr revenue bonds only. 92 TOWN OF LAKE PARK, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS UNAUDITED Education Level in Years of Formal Per Capita Personal Average Household Unemploy- ment Fiscal Median Age(I) 37 37 38 36 40 37 38 38 36 37 School Year Population (1) Income (1) Income (1) Schooling Enrollment (3) Rate (4) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Data Sources: 8,360 $ 22,071 $ 48,691 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 341 350 348 352 368 368 368 368 546 511 6.00% 4.90% 5.30% 4.10% 3.40% 3.20% 6.20% 4.10% 2.70% 3.10% 8,448 8,640 8,645 8,605 8,505 8,556 9,047 8,980 8,984 18,774 20,984 20,160 20,999 20,799 23,162 23,162 25,015 28,920 45,780 51,182 46,175 51,186 53,659 61,705 61,705 60,632 54,741 (1) The Population for 2013, 2014, 2015, 2016, 2017,2018, 2019,2020,2021 and 2022was obtained from the US Ce Finder. Per Capita, Avg Household Income & Median Age was obtained from the US Census Bureau Fact F. (3) Lake Park Elementary. (4) Unemployment rate was obtained from the US Dept ofLabor Local Area Unemployment Statistics. 9 TOWN OF LAKE PARK, FLORIDA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO UNAUDITED 2023 2014 Percentage ofTotal Town Employees Percentage ofTotal Town Employees Rank Employees Rank Employment Employer Palm Beach County School District Palm Beach County Tenet Coastal Division PBC Next Era Energy (Parent Co, FPL) Florida Atlantic University Boca Raton Regional Hospital Veterans Health Administration HCA Healthcare The Breakers Baptist Health South Florida 22,426 5,753 5,734 5,330 5,059 2,135 2,600 2,419 2,300 2,282 56,038 1 2 3 4 5 6 7 8 9 10 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 21,449 5,330 6,100 3,804 2,980 2,250 2,700 2,714 N/A N/A 47,327 1 3 2 4 6 10 8 7 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Totals Source: Business Development Board of Palm Beach County. Data is for the West Palm Beach to Boca Raton metropolitan area. N/A: Not available. TOWN OF LAKE PARK, FLORIDA FULL-TIME EQUIVALENT TOWN EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS UNAUDITED 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 2 2 3 2 3 3 3 2 2 2 2 2 2 2 2 2 2 1 1 2 2 2 2 2 2 2 4 5 5 5 6 5 5 5 5 n/a n/a n/a n/a n/a n/a n/a n/a 1 1 1 1 1 1 1 General government Town! Manager Personnel Town Clerk Finance Grant Writer/ChiefPIO Information technology Public Safety Police Fire Community Development Physical Environment Public works Vehicle maintenance Transportation Transportation Culture and Recreation Library Park maintenance Recreation Marina Sanitation Total 6 8 6 8 6 8 2 2 5 6 3 4 7 56 5 5 2 2 5 6 3 4 7 52 7 7 2 2 6 6 3 5 6 57 7 7 2 2 5 6 3 5 8 58 7 8 2 2 4 5 3 6 7 57 8 8 2 2 6 5 3 6 9 62 8 2 2 5 5 1 3 8 52 2 5 6 1 3 8 50 2 5 6 3 8 51 9 TOWN OF LAKE PARK, FLORIDA OPERATINGINDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS UNAUDITED Function Public Safety Community development Code violations Building permits issued Value of permits (in thousands) Transportation Street resurfacing (miles) Pot holes repaired Culture and Recreation Library Circulation Programs offered Park maintenance Acres of parks Recreation Recreation programs offered Recreation program attendance Youth athletic participants Marina Available slips Sanitation Residential customers Commercial customers Refuse collected (tons) Recyclables collected (tons) Sources: Town departments. N/A: Not available. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 503 581 451 663 723 830 651 703 792 990 9,871 33,464 12,203 891 683 847 618 684 674 781 868 400 845 9,844 17,839 61,028 241,912 127 450 441 512 585 429 419 468 436 273 27,360 27,010 29,790 27,300 8,790 4,700 2,669 3,173 2,969 3,981 980 1,015 821 256 57 149 465 69 69 69 69 69 69 69 7 7 7 11 9 134 283 168 190 185 130 74 173 68 140 150 100 112 112 112 112 112 112 112 112 112 112 3,666 3,666 3,666 3,666 3,397 3,689 3,689 3,666 3,666 3,677 375 375 375 288 293 303 328 315 295 304 8,970 9,385 9,814 392 398 391 361 377 319 189 279 219 207 1,282 69 3 825 1,314 69 3 825 1,300 69 880 9,827 10,246 10,362 10,686 11,308 11,758 11,167 9 TOWN OF LAKE PARK, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS UNAUDITED Function/Program Street Lights Lanel Miles Culture and Recreation Marina Wet Slips Library Books Leisure Services Ballfields lighted Basketball courts Soccer fields Tennis courts Parks Sanitation Garbage Trucks Water /Sewer (Provided by Seacoast Utility). N/A: Not applicable. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 340 340 340 340 340 345 340 675 675 64 64 64 64 64 64 64 64 64 64 112 112 112 112 112 112 112 112 112 112 35,435 35,000 37,000 37,695 42,340 34,780 35,118 36,338 36,338 40,545 2 2 1 6 7 13 N/A 2 2 1 6 7 13 N/A 2 2 1 6 7 14 N/A 2 2 1 6 7 14 N/A 2 2 1 6 7 14 N/A 2 2 1 6 7 14 N/A 2 2 1 6 7 14 N/A 1 4 6 12 N/A 4 6 10 N/A N/A Source: Town Departments, Town ofLakel Park, Florida. 9 REPORTING SECTION MARCUM A ADVISORS INDEPENDENT AUDITORS' REPORT ON NTERMALCONIROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ONANAUDIT OF FINANCIALSTATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS To the Honorable Mayor and Town Commission Town ofLake Park, 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 (Government Auditing Standards), the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Lake Park, Florida (the "Town"), as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements, and have issued our report thereon dated December 2, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town'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 ofthe Town's internal control. Accordingly, we do not express an opinion on the effectiveness of 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 ofthe Town'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 1s less severe than a material weakness, yet Our consideration ofi 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item SD2023-001 that we consider tol be a significant deficiency. the Town's internal control. important enough to merit attention by those charged with governance. 98 Marcum LLP / 525 Okeechobee Boulevard I Suite 750 / West Palm Beach, FL 33401 / Phone! 561.653.7300 / marcumlp.com Report on Compliance and Other. Matters As part of obtaining reasonable assurance about whether the Town'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 an instance ofi noncompliance or other matters that is required to be reported under Government Auditing Standards and which is described in the accompanying schedule of findings and responses as item SD2023-002. Town' 's Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Town's response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The Town's response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose ofthis 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 Town'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 Town's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. MArnLLP West Palm Beach, Florida December 2, 2024 99 MARCUM A ADVISORS INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR THE MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Town Commission Town ofLake Park, Florida Report on Compliance for the Major Federal Program Opinion on the Major Federal Program We have audited the Town ofLake Park, Florida's (the "Town") compliance with the types of compliance requirements described in the OMB Compliance Supplement, that could have a direct and material effect on the Town's major federal program for the fiscal year ended September 30, 2023. The Town's major federal program is identified in the summary of auditors' results section of the accompanying schedule ofi findings and questioned costs. Inc our opinion, the Town complied, in all material respects, with the type of compliance requirements referred to above that could have a direct and material effect on its major federal program for the fiscal year ended September 30, 2023. Basis for Opinion on the Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General oft the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements, for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors' Responsibilities for We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the Audit of Compliance section of our report. the Town's compliance with the compliance requirements referred to above. Responsibilities of Management, for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provision of contracts or grant agreements applicable to the Town's federal programs. 100 Marcum LLP / 525 Okeechobee Boulevard I Suite 750 / West Palm Beach, FL 33401 / Phone! 561.653.7300 / marcumlp.com Auditors' Responsibilities. for the Audit ofCompliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Town's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material ifthere isas substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Town's compliance with the In performing an audit in accordance with GAAS, Government Auditing Standards, and the requirements of the major federal program as a whole. Uniform Guidance, we: Exercise professional judgment and maintain professional skepticism throughout the Identify and assess the risks of material noncomplance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding Town's compliance with the compliance requirements referred to above and performing such other procedures as we Obtain an understanding of the Town's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. audit. considered necessary in the circumstances. Report on Internal Control over Compliance A deficiency in internal control over compliance exists when the design or operation ofa control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on at timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 101 Our consideration ofi internal control over compliance was for the limited purpose described in the Auditors' Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were noti identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. MArLLP West Palm Beach, Florida December 2, 2024 102 TOWN OF LAKEI PARK, FLORIDA SCHEDULEOFI EXPENDITURES OFI FEDERALAWARDS FOR THEI FISCALYEAR ENDED SEPTEMBER: 30, 2023 Assistance Listing No. (ALN) Federal Agency, Pass-through Entity Federal Program Contract/ Grant No. Total Expenditures United States Department of Housing and Urban Development CDBG- Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants Total CDBG Entitlement Grants Cluster Community Development Block Grants/State's Program and Non-Entitlement Grants in] Hawail Total United States Department ofHousing and Urban Developmen United States Department of Treasury Indirect Program: Direct Program: 14.218 FL0135100 $ 29,970 29,970 209,381 239,351 14.228 B-19-DC-0002 Passed through State ofl Florida Division of] Emergency Management- Coronavirus State and Local Fiscal Recovery Funds Total United States Department of Treasury United States Department of Homeland Security Hazard Mitigation Grant Program (HMGP) Hazard Mitigation Grant Program (HMGP) Hazard Mitigation Grant Program (HMGP) Total United States Department ofHomeland Security Totall Expenditures ofl Federal Awards Note: No amounts were provided tos subrecipients. 21.027 Y5163 975,643 975,643 Indirect Programs: Passed through State of Florida Division of] Emergency Management 97.039 DR-4673-DR-FL 5,269 5,340 1,230 11,839 1,226,833 97.039 97.039 4337-149-R 22FRP76 See notes to. Schedule of Expenditures of Federal. Awards. 103 TOWN OF LAKE PARK, FLORIDA NOTES TOS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE: FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE1 1-1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the "Schedule") presents the expenditure activity of all federal awards of the Town of Lake Park, Florida (the "Town") for the fiscal year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net position/fund balance or cash flows of the Town. NOTE2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE3-INDIRECTS COST RATE The Town has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 104 TOWN OF LAKE PARK, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE: FISCAL YEAR ENDED SEPTEMBER 30, 2023 SECTIONI-SI-SUMMARY OF AUDITORS' RESULTS Financials Statements Type of auditors' report issued on whether the financial statements audited were prepared in accordance with GAAP: Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified? Unmodified Opinion Yes XNo XYes None reported X_Yes No Non-comphance material to financial statements noted? FederalAvards Internal control over major program: Material weakness(es) identified? Significant deficiency(ies) identified? Yes XNo Yes X_None reported Unmodified Opinion Yes XNo Type ofauditors' report issued on compliance for the major Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Identification of the Major Federal Program: program: ALN 21.027 Federal Program Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between Type A and Auditee qualified as low-risk auditee pursuant to the Type B federal programs: Uniform Guidance? $750,000 X_Yes No 105 TOWN OF LAKE PARK, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE: FISCAL YEAR ENDED SEPTEMBER 30, 2023 SECTION II- FINANCIAL STATEMENT FINDINGS SD2023-001 - GENERAL INFORMATION TECHNOLOGY Criteria The Town's computerized information systems are vital to its daily operations. As such, the Town should have a formal written Information Technology (IT) Policy that documents and encompasses various areas such as: General IT procedural manual, disaster recovery plan, user access reviews, software modifications, data back-up schedules, cybersecurity incident response plan, etc. Condition While we observed that certain informal policies are in place and operational, we found that the Town lacks formal documentation for its computer standards, policies, and procedures, which are essential for maintaining control over the numerous computing activities being carried out. Additionally, there is an absence of an official written policy addressing user access reviews, the management of controls for internally developed applications, and the Town's disaster recovery plan. Cause The Town currently does not have a comprehensive formal written IT policy. Effect Without proper documentation, management is not assured that its desired policies and procedures are being carried out. In addition, documentation is an effective tool for training new personnel, providing operations instructions, and assisting in system revisions and development ofIT needs. Also, in the event of personnel turnover or emergency, the Town does not have a formal written IT policy document to use for immediate reference. Recommendation We recommend the Town to produce a formal written IT policy to properly address the condition above and to continuously update the policy on an annual basis as considered necessary. As a component of the policy, the document should include an up-to-date disaster recovery plan to provide continued operations and to ensure electronic files are not lost because of a major computer hardware or software failure or other potential external interruptions (e.g. natural disasters and cybersecurity attacks). ViewofResponsible Official and Planned Corrective. Action See accompanying corrective action plan. 106 TOWN OF LAKE PARK, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE: FISCAL YEAR ENDED SEPTEMBER 30, 2023 SECTIONII-F FINANCIALSTATEMENT FINDINGS (CONTINUED) SD2023-0U2-NON-COMPLANCEWII: FLORIDA STATUTES Criteria fiscal year. Condition Section 218.39(1), Florida Statutes, requires that a local government shall have an annual financial audit of its accounts and records completed within nine (9) months after the end ofi its The Town did not issue and file the September 30, 2023 financial statements with the Auditor General by June 30, 2024 or the Annual Financial Report ("AFR") to the Florida Department of Financial Services by June 30, 2024, as required by Florida Statutes. Cause The Town experienced significant personnel turnover within the finance department. Effect procedures. Recommendation personnel. The lack of personnel led to delays in performing required financial statement closing We recommend that the Town assess the finance department staffing needs and hire the required View of Responsible Official and Planned Corrective. Action See accompanying corrective action plan. SECTION III-I FEDERAL. AWARDS FINDINGS AND QUESTIONED COSTS None. 107 TOWN OF LAKE PARK, FLORIDA SUMMARY SCHEDULE OF PRIOR. AUDIT FINDINGS FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2023 PRIOR YEAR FINANCIAL STATEMENT FINDINGS None. II. PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None. 108 MARCUM A ADVISORS MANAGEMENT LETTER IN ACCORDANCE WITHTHE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Honorable Mayor and Town Commission Town ofLake Park, Florida Report on the Financial Statements We have audited the financial statements of the Town ofLake Park, Florida (the "Town"), as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated December 2, 2024. Auditors'. 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 (Government Auditing Standards), the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules oft the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors' Report on Compliance for the Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance; Schedule of Findings and Questioned Costs; Summary Schedule of Prior Audit Findings; and Independent Accountants' 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 and schedules, which are dated December 2, 2024, should be considered in conjunction with this management letter. PriorAudit. Findings Section 10.554(1)()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 annual financial audit report. There were no findings or recommendations made in the prior year that required corrective actions. 109 Marcum LLP / 525 Okeechobee Boulevard I Suite 750 / West Palm Beach, FL 33401 / Phone! 561.653.7300 / marcumlp.com Official Title and Legal Authority Section 10.554(1)()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. The Town has made these disclosures in the notes to the financial statements. Financial Condition and Management Section 10.554(1)@)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results ofour determination as to whether or not the Town 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 Town did not meet any oft the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)0)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the Town. It is management's responsibility to monitor the Town's financial condition, and our financial condition assessment was based inj part on representations made by management and the review of financial information provided by same. Our assessment was done as of the fiscal year end. The results of our procedures did not Section 10.554(1)()2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not disclose any matters that are: required to be reported. have any such recommendations. Special. District Component Units Section 10.554(1)0)5.C., Rules of the Auditor General, requires, if appropriate, that we communicate 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. In connection with our audit, we determined that the special district component unit provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Additional. Matters Section 10.554(1)()3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. 110 Purpose ofthis Letter Our management letter is intended solely for the information and use oft the Legislative Auditing Committee, members ofthe Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Honorable Mayor, Town Commission, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Marunk LLP West Palm Beach, Florida December 2, 2024 111 MARCUM A ADVISORS INDEPENDENT ACCOUNTANTS REPORT ON COMPLIANCE PURSUANTTO SECTION 218.415, FLORIDA STATUTES To The Honorable Mayor and Town Commission Town ofLake Park, Florida We have examined the Town of Lake Park, Florida (the "Town") compliance with Section 218.415, Florida Statutes, Local Government Investment Policies, for the fiscal year ended September 30, 2023. Management of the Town is responsible for the Town's compliance with the specified requirements. Our responsibility is to express an opinion on the Town's compliance 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 Town complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Town complied with the specified requirements. The: nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable We are required to be independent and to meet our other ethical responsibilities in accordance Our examination does not provide a legal determination on the Town's compliance with Inour opinion, the Town complied, in all material respects, with Section 218.415, Florida This report is intended solely to describe our testing of compliance with Section 218.415, Florida based on our examination. basis for our opinion. with relevant ethical requirements relating to the examination engagement. specified requirements. Statutes, for the fiscal year ended September 30, 2023. Statutes, and it is not suitable for any other purpose. Marenk LLP West Palm Beach, FL December 2, 2024 112 Marcum LLP / 525 Okeechobee Boulevard I Suite 750 / West Palm Beach, FL 33401 / Phone! 561.653.7300 / marcumlp.com December 2, 2024 Governing Board Town ofLake Park Finance Department RE: Response to Report of Audit Findings Management Letter for Year ending September 30, 2023 SD2023-001 General Information Technology The Chief Information Technology Officer is currently preparing IT. policies that encompass, and address the findings of the audit. Itis anticipated that this process will be completed by 12/31/2024. SD2023-002 - Non-Compliance with Florida Statutes There were a multitude ofissues that delayed the Town having its annual financial audit completed within 9 months after the end of the fiscal year. There were personnel vacancies, which have been filled as ofl late June 2024. The employment market in South Florida is very challenging and the Town needed to employ multiple strategies to successfully resolve the issue. Additionally, thc Town brought on new financial software in July 2023. This caused delays while employees worked through the learning curve tol become fully functional inj their positions. Finally, the engagement ofi new auditors took place too late for the process to successfully conclude by June 30, 2024. At this time, we expect to be in full compliance for June 30, 2025. Should you have any questions or concerns about the above response, please contact mee directly. T 535 Park. Avenue Lakc Park, FL33403 Phone: (561)881-3350 Fax: (561) 881-3358 Jeffrey DaSilva wwwlhkepaiAlounagow 113 Exhibit C Town of Lake Park Town Commission Agenda Request Form Meeting Date: January 15, 2025 Agenda Item No. Agenda Title: Legislative Priority Discussion: Ovalabout At The Intersection Of1 10Street. Prosperity Farms Road. And Northern Drive [I SPECIAL PRESENTATION/REPORTS [I CONSENT AGENDA [1 PUBLIC HEARING ORDINANCE ON FIRST READING [I BOARD APPOINTMENT [x] NEW BUSINESS [I OTHER: Il OLD BUSINESS Digitally signed by Bambi Mckibbon-Turner DN: cn=Bambi Mckibbon-Turner, O=Town of Date: Lake Park, ou-Assistant Town Manager/ HumankesouresDreto. Date: 2025.01.03 10:04:49-0500 Bambi Approved by Town Manager Mckibbon-Turner emal-btumerelakepanlondagowceus Name/Title: Merrell Augatreick, Grant PriterlPhief Public luformation Officer Originating Department: Costs: $ 0.00 Attachments: None Funding Source: Acct. # [JFinance Town Manager All parties that have an interest Yes Ih have notified Advertised: Date: Paper: [x] Not Required int this agenda item must be notified of meeting date and time. Thei following box must bet filled out to be on agenda. everyone_ or Not applicable in this case MA Please initial one. Summary panatonsackgroung: Periodically, prior to the upcoming legislative session, the Town Commission discusses its legislative priorities with the Town's Lobbyist (Ellyn Setnor Bogdanoff). The purpose of this agenda item is the identification of the Commission's legislative and funding priority for the 2025 state legislative session. In order to facilitate such discussion, staff proposes the following: Creation of an ovalabout (similar to a roundabout, but oval) to enhance safety at a five- legged intersection (10th Street/Prosperity Farms Road/Northern Drive) in the Town. This would create immediate jobs, improve transportation conditions, enhance public safety, and support the economy (because the roads would be safer and easier to traverse). The project is expected to cost $1.2 million, and the Town would match the $800,000 The decision to focus on this project was made by staff, in part, based on communications with Ms. Bogdanoff who advised that any project request be kept under $800,000. Further, this project was suggested to Ms. Bogdanoff along with a seawall improvement project, and Ms. Bogdanoff indicated that a road safety project would have a greater chance of being funded through this channel, whereas a seawall project is more likely tol bet funded through an avenue through a DEP *Please note: a similar version of this item appeared ont the December 18, 2024 agenda; the item allocation with $400,000 from our CRA budget. or other grant-making source. has been brought back for consideration at the request of the Commission. Recommended Motion: Imove that the above priority be approved for submission to the State House and Senate for the 2025 legislative session. Town of Lake Park PUBLIC COMMENT CARD CIVILITY AND DECORUM The Town of Lake Park is committed to civility and decorum to be applied and observed by its elected officials, advisory board members, employees and members of the public who attend Town meetings. The following rules are hereby established to govern the decorum to be observed by all persons attending public meetings of the Commission and its advisory boards: Those persons addressing the Commission or its advisory boards who wish to speak shall first be recognized by the presiding officer. No person shall interrupt a speaker once the speaker has been recognized by the presiding officer. Those persons addressing the Commission or its advisory boards shall be respectful and shall obey all directions from the presiding officer. Public comment shall be addressed to the Commission or its advisory board and not to the audience or to any individual member on the dais. Displays of disorderly conduct or personal derogatory or slanderous attacks ofanyone in the assembly is discouraged. Anyindividual who does sO may be Unauthorized remarks from the audience, stomping of feet, clapping, whistles, yells or any other type of demonstrations are discouraged. An member of the public who engages in debate with an individual member of the Commission or an advisory board is discouraged. Those individuals who All cell phones andlor other electronic devices shall be turned off or silenced prior to the start of the public meeting. An individual who fails to do sO may removed from the meeting. do sO may be removed from the meeting. be removed from the meeting. Meeting Date f/519095 Cardsr must be submitted before thei itemi is discussed!! ***Three (3) minute limitation on all comments Name: Address: Bt Vaupn ypuarhnteresedingewnrcewpgtomnmomatot through Email, please provide your E-mail address: brehauhAu QmarL. COM lwould liket to make comments ont thet following Agenda Item: Iwouldi like tor make commentsont thef following Non-Agenda Item(s): FLORA EAUNA FEST 2025 Instructions: Please complete this card, includingy your name and address; oncet the card has been completed,, giveitt to the Town Clerk. Thel Mayorwillo cally yourr name wheni itist timej foryoutos speak. Comments are limited to three ()minutes perindividual. proposd event * Aokd abat Scnt Houerds Town of Lake Park PUBLIC COMMENT CARD KEPAR CIVILITY AND DECORUM The Town of Lake Park is committed to civility and decorum to be applied and observed by its elected officials, advisory board members, employees and members of the public who attend Town meetings. The following rules are hereby established to govern the decorum to be observed by all persons attending public meetings of the Commission and its advisory boards: Those persons addressing the Commission or its advisory boards who wish to speak shall first be recognized by the presiding officer. No person shall interrupt a speaker once the speaker has been recognized by the presiding officer. Those persons addressing the Commission or its advisory boards shall be respectful and shall obey all directions from the presiding officer. Public comment shall be addressed to the Commission or its advisory board and not to the audience or to any individual member on the dais. Displays of disorderly conduct or personal derogatory or slanderous attacks ofanyone in the assembly is discouraged. Anyindividual who does so may be Unauthorized remarks from the audience, stomping of feet, clapping, whistles, yells or any other type of demonstrations are discouraged. An member of the public who engages in debate with an individual member of the Commission or an advisory board is discouraged. Those individuals who All cell phones and/or other electronic devices shall be turned off or silenced prior to the start of the public meeting. An individual who fails to do so may removed from the meeting. do so may be removed from the meeting. be removed from the meeting. Meeting Date 15hs - Cardsr must be submitted before thei item is discussed!! ***Three (3) minute limitationonallomments Name: MccLDRvke Address: 233 %h t, LP fyouareinterestedinreehingTownimformationthrough hEmail, please provide your E-mailaddress: lwould like to make comments ont thet following Agenda Item: Twould liket tor make commentsonthef following Non-Agenda Item(s): Ga ist ar Tany Ael piet a Comments are! limitedt to three (3)minutes perindividua. 7m Gh a dlelarya pppred pieck Instructions: Pleasec complete this card, including) yournamea and address; oncet the card has been completed, givei ittot the Town Clerk. Thel Mayorwillo cally your name when itist timej foryoutos speak.