comprehensive annual financial report … annual report consists of a series of financial...

COMPREHENSIVE ANNUAL FINANCIAL REPORT

OF THE

TOWN OF LANTANA, FLORIDA

FOR THE FISCAL YEAR ENDED

SEPTEMBER 30, 2009

PREPARED BY THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT


TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal i-iv List of Principal Officials v Organizational Chart vi GFOA Certificate of Achievement for Excellence in Financial Reporting vii FINANCIAL SECTION Independent Auditors’ Report 1-2 Management’s Discussion and Analysis 3-13 BASIC FINANCIAL STATEMENTS: Government-Wide Financial Statements: Statement of Net Assets 14 Statement of Activities 15 Fund Financial Statements: Balance Sheet – Governmental Funds 16 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 17 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities

19

Statement of Net Assets – Proprietary Funds 20 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds 21 Statement of Cash Flows - Proprietary Funds 22 Statement of Fiduciary Net Assets 23 Statement of Changes in Fiduciary Net Assets 24 Notes to Basic Financial Statements 25-48 REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule – General Fund 49 Note to Budgetary Comparison Schedule 50 Schedule of Funding Progress – Police Relief and Pension Fund 51 Schedule of Funding Progress – Other Post-Employment Benefits 52 COMBINING NONMAJOR FUND STATEMENTS AND SCHEDULES: Combining Balance Sheet – Nonmajor Governmental Funds 53 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds

54

Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds

55


TABLE OF CONTENTS (Continued)

PAGE STATISTICAL SECTION Net Assets by Component – Last Seven Fiscal Years 56 Changes in Net Assets – Last Seven Fiscal Years 57-58 Fund Balances of Governmental Funds – Last Seven Fiscal Years 59 Changes in Fund Balances of Governmental Funds – Last Seven Fiscal Years 60 Net Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 61 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years 62 Principal Property Taxpayers – Current Year and Nine Years Ago 63 Property Tax Levies and Collections – Last Ten Fiscal Years 64 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 65 Direct and Overlapping Governmental Activities Debt 66 Sports Complex Bonds Pledged Revenue Coverage – Last Ten Fiscal Years 67 Streets and Highways Note Pledged Revenue Coverage – Last Ten Fiscal Years 68 1998 Water and Sewer Bonds Pledged Revenue Coverage – Last Ten Fiscal Years 69 Demographic and Economic Statistics – Last Ten Fiscal Years 70 Principal Employers – Palm Beach County – Current Year and Nine Years Ago 71 Principal Employers – Town of Lantana 71 Full-Time Equivalent Town Government Employees by Function 72 Operating Indicators by Function/Program 73 Capital Asset Statistics by Function/Program 74 Miscellaneous Statistics 75-76 Schedule of Insurance in Force 77 COMPLIANCE SECTION Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards

78-79 Management Letter in Accordance with the Rules of the Auditor General of the State of Florida 80-82

INTRODUCTORY SECTION

v


LIST OF PRINCIPAL OFFICIALS

SEPTEMBER 30, 2009

TITLE NAME Mayor David J. Stewart Vice Mayor Thomas Deringer Vice Mayor Pro Tem Cindy Austino Council Member ElizabethTennyson Council Member Dr. Lynn Moorhouse Town Manager Michael Bornstein Town Attorney R. Max Lohman Town Engineers Mathews Consulting, Inc. Keith & Shnars, P.A. Kimley-Horn & Assoc., Inc.

Engenuity Group Inc. Town Auditors MarcumRachlin, a division of

Marcum LLP Utilities Director Jerry Darr Town Clerk Crystal Gibson Operations Director Michael Greenstein Finance and Administrative Services Director Stephen Kaplan Police Chief Richard Lincoln Library Director Sid Patchett Development Services Director David Thatcher

vi

TOWN OF LANTANA ORGANIZATIONAL CHART

FINANCIAL SECTION

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MANAGEMENT’S DISCUSSION AND ANALYSIS The purpose of financial reporting, in general, is to provide the readers of the financial statements with information that will help them make decisions and draw conclusions about an entity. As management of the Town of Lantana (Town), Florida, we offer 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, 2009. We encourage readers to consider the information presented here in conjunction with information that we have furnished in our accompanying transmittal letter beginning on Page i, and the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS • The Town’s net assets at September 30, 2009 were $17.47 million, excluding the amount

invested in capital assets. Of this amount, $17.4 million (unrestricted net assets) may be used to meet the Town’s ongoing obligations to citizens and creditors.

• Governmental activities net assets were $28.2 million, of which, $10.8 million were unrestricted.

• The total revenues from all sources were $14.16 million.

• The total costs of all Town programs were $14.2 million.

• During the year, the Town’s governmental activity expenses exceeded revenues by $393,156.

• Total expenditures and other financing uses in the General Fund exceeded revenues and other financing sources by $1,278,461.

• At the end of the current fiscal year, unreserved and undesignated fund balance for the General Fund was $8.9 million, or 91% of total General Fund expenditures. However, of this balance, $3.3 was accumulated due to the sale of Town property from prior years, of which, $1,737,300 remains available after the construction of the seawall explained in further detail on page 10. Council has recommended that this amount remain as unreserved and undesignated fund balance, and it is not to be used to finance the Town’s operations in future years.

OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of a series of financial statements. The three components of the basic financial statements are: (1) Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. These statements provide information about the activities of the Town as a whole. (2) Fund financial statements illustrate how these services were financed in the short term, as well as what remains for future spending. Fund financial statements also report the Town’s operations in more detail

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than the government-wide statements by providing information about the Town’s most significant funds. (3) Notes to the financial statements. Other information such as budgetary comparisons, statements of the non-major governmental funds, and the statistical section contains data such as financial trends, debt capacity, and demographic, economic and operating information to assist the reader in better understanding the operations of the Town. This report also contains other supplementary information in addition to the basic financial statements. The financial statement focus is on both the Town as a whole (government-wide) and on the major individual funds. The following graph shows the relationship between the CAFR and the basic financial statements and Required Supplementary Information (“RSI”).

General Information on the government structure, services and environment

Introductory Section

Management's Discussion and Analysis

Government-wide Financial Statements

Governmental Fund Financial StatementsCAFR

Proprietary Fund Financial Statements FinancialSection

Fiduciary Fund Financial Statements

Notes to the Financial Statements

Additional Required Supplementary Information

Information on non-major individual funds, budgetary comparisons and other supplementary information

Trend data and non-financial dataStatistical Section

Supplementary Information (RSI)

Basic Financial statements and RSI

Relationship Between Comprehensive AnnualFinancial Report (CAFR)

AndBasic Financial Statements and Required

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GOVERNMENT-WIDE FINANCIAL STATEMENTS A 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 Assets 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 and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account, regardless of when cash is received or paid. These two statements report the Town’s net assets and changes therein. Net assets, the difference between assets and liabilities, are one way to measure the Town’s financial health, or financial position. Over time, increases or decreases in net assets are an indicator of whether the financial health is improving or deteriorating. The Statement of Net Assets and the Statement of Activities present information about the following: • Governmental activities – All of the Town’s basic services are considered to be governmental activities, including general government, community development, public safety, public services, library, and recreation. Property taxes, sales taxes, utility taxes, and franchise fees finance most of these activities. • Proprietary activities/Business-type activities – The Town charges a fee to customers to cover all or most of the cost of the services provided.

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 use of certain taxes, grants, and other monies. The Town’s three kinds of funds, governmental, proprietary, and fiduciary use different accounting approaches as explained below: • 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 governmental operations and the basic services it provides. Governmental fund information shows whether there are more or less 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 16-19 of this report.

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• Proprietary funds – These fund financial statements consist of a Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets and Statement of Cash Flows. These statements are prepared on an accounting basis that is similar to the basis used to prepare the government-wide financial statements.

The Town uses Enterprise Funds to account for business-type activities that charge fees to customers for the use of specific goods or services. These funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Internal Service Funds are used to account for services provided and billed on an internal basis. The Town uses Internal Service Funds to account for its workers compensation and general liability expenses. The basic proprietary fund financial statements can be found on pages 20-22 of this 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 23 and 24 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town, assets exceeded liabilities by $37.9 million, which is approximately the same amount as the previous fiscal year. The largest portion of the Town’s net assets (53.8%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that are still outstanding. 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.

2009 2008 2009 2008 2009 2008Assets: Current and other assets 12,261,750$ 13,360,947$ 7,676,765$ 7,318,293$ 19,938,515$ 20,679,240$ Capital assets 20,214,469 19,614,632 11,724,512 12,163,275 31,938,981 31,777,907 Total assets 32,476,219 32,975,579 19,401,277 19,481,568 51,877,496 52,457,147 Liabilities: Long term debt outstanding 3,528,166 3,758,778 8,788,545 9,356,124 12,316,711 13,114,902 Other liabilities 705,800 581,392 975,851 814,235 1,681,651 1,395,627 Total liabilities 4,233,966 4,340,170 9,764,396 10,170,359 13,998,362 14,510,529 Net Assets: Invested in capital assets, net of related debt 17,338,103 16,428,650 3,067,301 2,948,454 20,405,404 19,377,104 Restricted 80,105 186,222 - - 80,105 186,222 Unrestricted 10,824,045 12,020,537 6,569,580 6,362,755 17,393,625 18,383,292 Total net assets 28,242,253$ 28,635,409$ 9,636,881$ 9,311,209$ 37,879,134$ 37,946,618$

Activities Business-type

ActivitiesTotal

Activities

Town of LantanaNet Assets

Governmental

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A portion of the Town’s unrestricted net assets ($1.7 million) represents resources that are requested by the Town Council to be set aside as this amount was acquired due to the sale of Town owned property in prior years. The remaining balance of unrestricted net assets ($15.7 million) may be used to meet the government’s ongoing obligations to citizens and creditors. The decrease in the government’s net assets for the fiscal year ended September 30, 2009 was $67,484 compared to an increase of $366,828 for the previous fiscal year. Business-type activities accounted for a $325,672 increase, while the governmental activities accounted for a $393,156 decrease. Details of these changes are explained later in the analysis. For both fiscal years presented, the Town was able to report positive balances in all three categories of net assets, as well as for its separate governmental and business-type activities.

GOVERNMENTAL ACTIVITIES Listed below is a schedule that illustrates the revenues, expenses, and changes in net assets.

2009 2008 2009 2008 2009 2008Revenues: Program revenues: Charges for services 2,304,471$ 2,426,559$ 4,834,025$ 4,599,751$ 7,138,496$ 7,026,310$ Operating grants and contributions 491,802 453,677 - - 491,802 453,677 Capital grants and contributions 38,872 18,034 145,735 - 184,607 18,034

General revenues: Property taxes 3,166,215 6,575,098 - - 3,166,215 6,575,098 Utility taxes 918,889 935,562 - - 918,889 935,562 Franchise fees based on gross receipts 772,731 804,092 - - 772,731 804,092 Communication services tax 409,214 493,392 - - 409,214 493,392 Sales and use tax 605,504 693,442 - - 605,504 693,442 State revenue sharing - unrestricted 289,023 323,426 - - 289,023 323,426 Investment income (loss) - unrestricted 73,451 393,206 (14,847) 109,918 58,604 503,124 Miscellaneous 125,749 98,366 - - 125,749 98,366 Gain from sale of capital assets - - - 27,375 - 27,375

Total revenues 9,195,921 13,214,854 4,964,913 4,737,044 14,160,834 17,951,898

Expenses: Program expenses: General government 802,674 675,795 - - 802,674 675,795 Physical environment 3,407,583 2,894,199 - - 3,407,583 2,894,199 Public safety 4,854,172 7,277,120 - - 4,854,172 7,277,120 Culture and recreation 406,927 1,799,145 - - 406,927 1,799,145 Interest on long-term debt 117,721 131,221 - - 117,721 131,221 Utility - Water & Sewer - - 4,639,241 4,807,590 4,639,241 4,807,590

Total expenses 9,589,077 12,777,480 4,639,241 4,807,590 14,228,318 17,585,070

Increase (decrease) in net assets (393,156) 437,374 325,672 (70,546) (67,484) 366,828

Net assets - October 1 28,635,409 28,198,035 9,311,209 9,381,755 37,946,618 37,579,790

Net assets - September 30 28,242,253$ 28,635,409$ 9,636,881$ 9,311,209$ 37,879,134$ 37,946,618$

Activities Activities Activities

Town of LantanaChanges in Net Assets

Governmental Business-type Total

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The net assets of the Town’s governmental activities for the year ended September 30, 2009 decreased by $393,156 compared to an increase of $437,374 in the prior year. Significant variances from the prior year are as follows: • Property taxes decreased by $3.4 million during the year. However, in fiscal year 2009,

Palm Beach County began charging a separate tax rate relating to the Municipal Service Taxing Unit (MSTU) for Fire/Rescue services. In previous years, the property tax rate charged by the Town, included this rate and was then paid to the County for services rendered. As such, since the Town did not collect the revenue, there was no expense to pay which is the reason Public Safety recognized a significant decrease.

• Investment income decreased by $319,755 due to reduced rates of return on Town investments and the unrealized loss in the State-run Local Governmental Investment Pool.

• Due to a significant reduction of consumer spending, revenues such as State revenue sharing and sales and use tax were lower than the previous year.

• The Operations Department was created in fiscal year 2009 within the Physical

Environment category. Some of the divisions within Culture and Recreation were transferred under the Operations Department causing a reduction in Culture and Recreation and an increase in Physical Environment.

The Town’s programs include General Government, Physical Environment, Public Safety and Culture and Recreational services. General Government contains the following departments: Legislative, Executive, Finance, and Legal. Physical Environment contains Public Works and Utilities and Operations. Public Safety contains Police and Development Services. Culture and Recreation contains Library and Special Events. Each program’s net cost (total cost, less revenues generated by the activities) is presented below. The net cost demonstrates the extent to which the Town’s general taxes support each of the Town’s programs.

2009 2008 2009 2008 2009 2008

General government 802,674$ 675,795$ (511,352)$ (597,033)$ 291,322$ 78,762$ Physical environment 3,407,583 2,894,199 (1,161,466) (1,071,323) 2,246,117 1,822,876 Public safety 4,854,172 7,277,120 (975,802) (1,000,267) 3,878,370 6,276,853 Culture and recreation 406,927 1,799,145 (186,525) (229,647) 220,402 1,569,498 Interest on long-term debt 117,721 131,221 - - 117,721 131,221

Total 9,589,077$ 12,777,480$ (2,835,145)$ (2,898,270)$ 6,753,932$ 9,879,210$

of Servicesof Services

Town of LantanaGovernmental Activities

Total Cost of Services Net Cost of ServicesProgram Revenuesof Services

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The cost of all governmental activities this year was $9.6 million. As shown on the Statement of Activities, those who directly benefited from the programs paid for $2.8 million of this cost, and $6.36 million was financed through general revenues.

Business-Type Activities Business-type activities increased the Town’s net assets by $325,672 for fiscal year 2009. Net assets of the proprietary fund at September 30, 2009, were $9.6 million. The cost of providing all proprietary (business-type) activities this year was $4.6 million compared to $4.8 million in the prior year. As shown in the Statement of Activities, amounts paid by users of service were $4.8 million in fiscal year 2009. A few factors contributed to the increase in net assets in 2009. First, revenue increased from the previous year due to a Council-approved 5% rate increase in June 2009 and a 3% increase in water consumption. While investment income recognized a decrease of $95,071, the increase in rates and consumption exceeded this decrease. Additionally, in fiscal year 2009, large capital projects began which are classified as capital assets, whereas, in the previous fiscal year, there were more projects focused on repairs and maintenance.

FINANCIAL ANALYSIS OF THE TOWN’S 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 funds 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, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $10.7 million, compared to $12 million in the prior fiscal year, a decrease of approximately $1.3 million. This decrease is due to a storm event that occurred within the first month of the fiscal year – October 2008. Most of the sand from the municipal beach was washed away due to strong water erosion. With three buildings on the dune about to fall into the Atlantic Ocean, the Town Council issued an emergency order and directed the Town Manager to construct a seawall. Working diligently with engineers, the Florida Department of Environmental Protection, Palm Beach County’s Department of Environmental Resources Management and the Florida Game and Fish Commission, staff coordinated the construction of a seawall spanning approximately 600 out of the 750 feet of beach at a cost of $1.56 million. Due to State requirements, the final phase to complete the full seawall could not be completed during this time. The funding for this project came from $3.3 million of the General Fund’s undesignated fund balance that Council had set aside many years ago from the sale of Town property.

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Approximately 88% or $9.4 million of the combined ending fund balances (Governmental Funds) of $10.7 million constitutes unreserved and undesignated fund balance, which is available for spending at the government’s discretion. Of the $9.4 million, $503,011 is derived from the Special Revenue funds’ undesignated and unreserved fund balances. These funds will be used towards each fund’s intended purpose. Additionally, the Town Council has stated that the remaining $1.7 million of the original $3.3 million acquired from the sale of Town-owned property be earmarked for future programs to be decided on at a later time. The remainder of fund balance is reserved or designated to indicate that it is not available for new spending because it has already been committed. The General Fund is the chief operating fund for the Town. At the end of the current fiscal year, unreserved and undesignated fund balance in the General Fund was $8.9 million, while total fund balance was $9.6 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to the total fund expenditures. Unreserved and undesignated fund balance represents 91% of total General Fund expenditures, while total fund balance represents 98% of that same amount.

General Fund Budgetary Highlights Differences between the original budget and the final amended budget were $2,981,819 and can be briefly summarized as follows: • Increase for the purchase of a communication system which includes police radios that

are interoperable with other agencies for $249,616. • Increase in various capital outlay expenditures carried over from the previous fiscal

year in the amount of $1,107,148. • Increase in capital outlay specific to the construction of the seawall at Lantana’s

municipal beach park by $1,563,000. The most significant variances between the final budget and actual were as follows: • Revenues for the 2009 fiscal year were $267,145 less than the final budget. While

State revenue sharing, sales tax, and building permits were less than anticipated, other revenues such as taxes (local communications services tax, water utility tax, and franchise fees) exceeded expectations. The net effect of these revenues comes very close to the final budget. The sole revenue that accounts for the variation between budget and actual is investment income which is derived from surplus funds the Town has deposited at Qualified Public Depositors (QPD) and the State Board of Administrations Local Governmental Investment Pool (Florida PRIME), all of which earned considerably less than projected when preparing budget estimates the year before. The rates received from investments have decreased considerably since 2007 due to the current economic climate.

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• Expenditures were $1.9 million less than the final budget for the 2009 fiscal year. About

65% of the difference is attributed to projects that were not fully completed by the end of the fiscal year. The remainder of the reduction was due to the combination of departments closely monitoring all expenditures, as well as lower than expected fuel costs.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets The capital assets of the Town are those assets that are used in the performance of Town functions. Capital assets include equipment, buildings, land, park facilities, etc. The Town has elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets. • The Town’s investment in capital assets for its governmental and business-type

activities as of September 30, 2009, amounts to $31.9 million (net of accumulated depreciation).

2009 2008 2009 2008 2009 2008

Land 110,367$ 110,367$ 4,300$ 4,300$ 114,667$ 114,667$ Construction-in-progress 49,427 - 356,392 - 405,819 - Roads and streets 22,799,727 22,779,860 - - 22,799,727 22,779,860 Buildings and improvements 6,943,964 5,409,569 11,475,383 11,507,245 18,419,347 16,916,814 Infrastructure - - 8,679,737 8,764,853 8,679,737 8,764,853 Furniture, equipment & vehicles 4,731,584 4,477,245 983,219 981,271 5,714,803 5,458,516 Intangible assets, net - - 1,097,878 1,221,727 1,097,878 1,221,727 Total assets 34,635,069$ 32,777,041$ 22,596,909$ 22,479,396$ 57,231,978$ 55,256,437$

Less accumulated depreciation (14,420,600) (13,162,409) (10,872,397) (10,316,121) (25,292,997) (23,478,530)

Total 20,214,469$ 19,614,632$ 11,724,512$ 12,163,275$ 31,938,981$ 31,777,907$

Capital AssetsTown of Lantana

Activities ActivitiesTotal

ActivitiesGovernmental Business-type

Additional information on the Town’s capital assets can be found in Note 6 beginning on page 36 of this report.

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Long-Term Debt

Currently, the Town uses debt financing on an as-needed basis each year. At the end of the current fiscal year, the Town had total debt of $11.5 million. None of this amount comprises debt backed by the full faith and credit of the government. Gas tax, utility tax and water and sewer revenues secure the bond and notes. During periods where capital leases are utilized, the equipment secures the debt.

2009 2008 2009 2008 2009 2008

Bonds and loans payable 2,876,366$ 3,185,982$ 8,657,211$ 9,214,821$ 11,533,577$ 12,400,803$

Total 2,876,366$ 3,185,982$ 8,657,211$ 9,214,821$ 11,533,577$ 12,400,803$

Activities Activities Activities

Town of LantanaOutstanding Debt

Governmental Business-type Total

Additional information on the Town’s debt can be found in Note 7 beginning on page 37 of this report.

NEXT YEAR’S BUDGET AND ECONOMIC FACTORS During the current fiscal year, unreserved and undesignated fund balance in the General Fund decreased from $9.7 million to $8.9 million. The Town Council has recommended that $1.7 million of this amount remain in the General Fund and not be used to balance future year’s budgets. The remaining fund balance’s use changes from year to year. In some years, large capital equipment is purchased; in other years, it has been Council’s direction not to use any of the Town’s fund balance. Finally, as the economy continues on by either shrinking or remaining static, fund balance may assist future years of declining revenues due to lower property values and other revenues that reduce with the economy. In considering the Town’s budget for fiscal year 2009-2010, the Town’s Council and management were conservative as to the growth of revenues and expenditures.

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CONTACTING THE TOWN’S FINANCIAL MANAGEMENT

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 show the Town’s accountability for the money it receives and spends. If you have questions about this report or need additional financial information, contact the Town’s Finance Department, at the Town of Lantana, 500 Greynolds Circle, Lantana, Florida 33462.

BASIC FINANCIAL STATEMENTS

Governmental Business-typeActivities Activities Total

ASSETSCash and cash equivalents 11,409,720$ 5,223,207$ 16,632,927$ Investments 111,465 105,633 217,098 Receivables, net 637,489 442,477 1,079,966 Inventories 15,752 - 15,752 Restricted assets:

Cash and cash equivalents - 1,840,299 1,840,299 Investments - 21,978 21,978

Deferred charges - 43,171 43,171 Net pension asset 87,324 - 87,324 Capital assets not being depreciated 159,794 360,692 520,486 Capital assets being depreciated and amortized, net 20,054,675 11,363,820 31,418,495

Total assets 32,476,219 19,401,277 51,877,496

LIABILITIESAccounts payable and accrued liabilities 424,929 243,267 668,196 Retainages payable - 420,060 420,060 Unearned revenue 262,070 - 262,070 Meter deposits payable - 157,929 157,929 Accrued interest payable 18,801 154,595 173,396 Noncurrent liabilities:

Due within one year 583,222 679,203 1,262,425 Due in more than one year 2,944,944 8,109,342 11,054,286

Total liabilities 4,233,966 9,764,396 13,998,362

NET ASSETSInvested in capital assets, net of related debt 17,338,103 3,067,301 20,405,404 Restricted for public safety 80,105 - 80,105 Unrestricted 10,824,045 6,569,580 17,393,625

Total net assets 28,242,253$ 9,636,881$ 37,879,134$


STATEMENT OF NET ASSETS

SEPTEMBER 30, 2009

See notes to basic financial statements.-14-

Charges Operating Capitalfor Grants and Grants and Governmental Business-type

Function/Program Activities Expenses Services Contributions Contributions Activities Activities Total

Governmental activities:General government 802,674$ 511,352$ -$ -$ (291,322)$ -$ (291,322)$ Physical environment 3,407,583 813,309 327,073 21,084 (2,246,117) - (2,246,117) Public safety 4,854,172 798,668 159,346 17,788 (3,878,370) - (3,878,370) Culture and recreation 406,927 181,142 5,383 - (220,402) - (220,402) Interest on long-term debt 117,721 - - - (117,721) - (117,721)

Total governmental activities 9,589,077 2,304,471 491,802 38,872 (6,753,932) - (6,753,932)

Business-type activities: Utility - water and sewer 4,639,241 4,834,025 - 145,735 - 340,519 340,519

Total business-type activities 4,639,241 4,834,025 - 145,735 - 340,519 340,519 Total government 14,228,318$ 7,138,496$ 491,802$ 184,607$ (6,753,932) 340,519 (6,413,413)

General revenues:Property taxes 3,166,215 - 3,166,215 Utility taxes 918,889 - 918,889 Franchise fees based on gross receipts 772,731 - 772,731 Communications services tax 409,214 - 409,214 Sales and use tax 605,504 605,504 State revenue sharing - unrestricted 289,023 - 289,023 Investment income (loss) - unrestricted 73,451 (14,847) 58,604 Miscellaneous 125,749 - 125,749

Total general revenues 6,360,776 (14,847) 6,345,929

Change in net assets (393,156) 325,672 (67,484)

Net assets, beginning of year 28,635,409 9,311,209 37,946,618

Net assets, end of year 28,242,253$ 9,636,881$ 37,879,134$


STATEMENT OF ACTIVITIES

YEAR ENDED SEPTEMBER 30, 2009

Program Revenues Changes in Net AssetsNet Expense (Revenue) and


Nonmajor TotalGovernmental Governmental

General Funds FundsASSETS

Cash and cash equivalents 9,511,770$ 1,168,499$ 10,680,269$ Investments 101,822 9,643 111,465 Receivables: Accounts, net of allowance for uncollectible amounts 309,451 - 309,451 Intergovernmental 249,186 78,852 328,038 Inventories 15,752 - 15,752

Total assets 10,187,981$ 1,256,994$ 11,444,975$

LIABILITIES AND FUND BALANCES

Liabilities:Accounts payable and accrued liabilities 300,135$ 124,794$ 424,929$ Deferred revenue 34,326 - 34,326 Unearned revenue 262 070 262 070


BALANCE SHEETGOVERNMENTAL FUNDS

SEPTEMBER 30, 2009


Unearned revenue 262,070 - 262,070

Total liabilities 596,531 124,794 721,325

Fund balances:Reserved:

Reserved for inventories 15,752 - 15,752 Unreserved, designated for: -

Subsequent year's expenditures - 53,990 53,990 Capital improvements 642,912 575,199 1,218,111

Unreserved and undesignated, reported in:General fund 8,932,786 - 8,932,786 Special revenue funds - 503,011 503,011

Total fund balances 9,591,450 1,132,200 10,723,650 Total liabilities and fund balances 10,187,981$ 1,256,994$ 11,444,975$


Total governmental fund balances (page 16) 10,723,650$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds:

Cost of assets 34,635,069$ Less accumulated depreciation (14,420,600) 20,214,469

Other long-term assets are not available to pay for current period expenditures and therefore are deferred in the fund. 34,326

Net pension assets for defined benefit pension plans are reported in the statement of net assets. They are not reported in the governmental fund statements because they do not represent available spendable resources. 87,324

Long-term liabilities, including bonds and notes payable, are not due and payable in the current period and therefore are not reported in the funds:

Accrued interest payable (18,801)$ Bonds and notes payable (2,876,366) Compensated absences payable (600,800) Other post-employment benefits (51,000) (3,546,967)

Internal service funds are used by management to charge the costs of certain activities such as insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets.

Internal service fund net assets 729,451

Total net assets (page 14) 28,242,253$


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEETTO THE STATEMENT OF NET ASSETS

SEPTEMBER 30, 2009


Nonmajor TotalGovernmental Governmental

General Funds FundsRevenues:

Taxes 5,312,145$ 259,712$ 5,571,857$ Licenses and permits 389,827 - 389,827 Intergovernmental 1,642,493 75,653 1,718,146 Charges for services 1,227,443 8,827 1,236,270 Fines and forfeitures 96,680 4,459 101,139 Investment income 72,207 1,244 73,451 Miscellaneous 121,765 600 122,365

Total revenues 8,862,560 350,495 9,213,055

Expenditures:Current:

General government 763,636 - 763,636 Physical environment 2,157,125 228,686 2,385,811 Public safety 4,563,517 67,202 4,630,719 Culture and recreation 201,539 - 201,539

Capital outlay 1,983,247 141,509 2,124,756 Debt service:

Principal 90,880 218,736 309,616 Interest and fiscal charges 31,077 88,842 119,919

Total expenditures 9,791,021 744,975 10,535,996

Deficiency of revenues over expenditures (928,461) (394,480) (1,322,941)

Other financing sources (uses):Transfers in - 350,000 350,000 Transfers out (350,000) - (350,000)

Total other financing sources (uses) (350,000) 350,000 - Net change in fund balances (1,278,461) (44,480) (1,322,941)

Fund balances, beginning 10,869,911 1,176,680 12,046,591

Fund balances, ending 9,591,450$ 1,132,200$ 10,723,650$



STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS


Net change in fund balances - total governmental funds (page 18) (1,322,941)$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of capital assets is allocated over their estimated useful lives and reported as depreciation expense:

Expenditures for capital assets 2,124,756$ Less current year depreciation (1,552,881) 571,875

Donated capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 27,962

Revenues in the statement of activities that do not provide current financial resources are not reported as revenue in the funds. (45,096)

Repayment of debt principal is an expenditure in the governmental funds, but the payment reduces long-term liabilities in the statement of net assets.

Principal payments on bonds and notes 309,616

Some expenses in the statement of activities do not require the use of current financial resources and therefore are not reported in the governmental funds:

Net pension asset (9,580)$ Accrued interest payable 2,198 Compensated absences payable (28,004) Other post-employment benefits (51,000) (86,386)

Internal service funds are used by management to charge the cost of certain activities, such as insurance, to individual funds. The net revenue (expense) of internal service funds is reported with governmental activities.

Internal service fund change in net assets 151,814

Change in net assets (page 15) (393,156)$


RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES



Business-type GovernmentalActivities Activities

InternalWater & Service

Sewer FundASSETS

Current assets:Cash and cash equivalents 5,223,207$ 729,451$ Investments 105,633 - Receivables:

Accounts receivable, net of allowance for uncollectible amounts 335,242 - Intergovernmental 107,235 - Total current assets 5,771,317 729,451

Noncurrent assets:Restricted assets:

Cash and cash equivalents 1,840,299 - Investments 21,978 -

Deferred charges 43,171 - Capital assets, net of accumulated depreciation and amortization 11,724,512 -

Total noncurrent assets 13,629,960 - Total assets 19,401,277 729,451

LIABILITIES Current liabilities:

Accounts payable and accrued liabilities 243,267 - Retainages payable 420,060 - Meter deposits payable 157,929 - Accrued interest payable 154,595 - Compensated absences payable, current portion 57,113 - Bonds payable, current portion 622,090 -

Total current liabilities 1,655,054 - Noncurrent liabilities:

Compensated absences payable 74,221 - Bonds payable 8,035,121 -

Total noncurrent liabilities 8,109,342 -

Total liabilities 9,764,396 -

NET ASSETSInvested in capital assets, net of related debt 3,067,301 - Unrestricted 6,569,580 729,451

Total net assets 9,636,881$ 729,451$


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

SEPTEMBER 30, 2009



InternalWater & ServiceSewer Fund

Operating revenues:Charges for services 4,820,424$ 613,800$ Miscellaneous revenues 13,601 -

Total operating revenues 4,834,025 613,800

Operating expenses:Personal services 1,369,310 - Cost of sales and services 1,825,289 - General and administrative - 461,986Depreciation 846,565 - Amortization 166,974 -

Total operating expenses 4,208,138 461,986

Operating income 625,887 151,814

Nonoperating revenues (expenses):Investment loss (14,847) - Interest expense (431,103) - Grants 145,735 -

Total nonoperating revenues (expenses) (300,215) -

Change in net assets 325,672 151,814

Net assets, beginning 9,311,209 577,637

Net assets, end of year 9,636,881$ 729,451$


STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETSPROPRIETARY FUNDS




InternalWater & Service

Sewer FundCash flows from operating activities:

Cash received from customers 4,857,408$ -$ Cash paid to employees for services (1,382,349) - Cash received from interfund services provided - 613,800 Cash paid to suppliers for goods and services (1,659,943) (464,424) Other receipts 13,601 -

Net cash provided by operating activities 1,828,717 149,376

Cash flows from capital and related financing activities:Acquisition and construction of capital assets (531,652) - Principal repayments (597,021) - Interest paid (439,002) - Grants received 38,500 -

Net cash used in capital and related financing activities (1,529,175) -

Cash flows from investing activities: Proceeds from sale of investments 401,526 - Purchase of investments (127,611) -

Interest received 28,234 - Net cash provided by investing activities 302,149 -

Net increase in cash and cash equivalents 601,691 149,376

Cash and cash equivalents, beginning 6,461,815 580,075 Cash and cash equivalents, ending 7,063,506$ 729,451$

Cash and cash equivalents:Unrestricted 5,223,207$ 729,451$ Restricted 1,840,299 -

7,063,506$ 729,451$

Reconciliation of operating income to net cash provided by operating activities:Operating income 625,887$ 151,814$ Adjustments to reconcile operating income to net

cash provided by operating activities:Depreciation 846,565 - Amortization 166,974 - Changes in assets and liabilities:

Decrease in accounts receivable 29,745 - Decrease in prepaid items - 6,641 Decrease in accounts payable and accrued liabilities (113,572) (9,079) Increase in retainages payable 275,847 - Increase in meter deposits payable 7,240 - Decrease in compensated absences (9,969) -

Total adjustments 1,202,830 (2,438) Net cash provided by operating activities 1,828,717$ 149,376$

Noncash investing activities - Change in fair value of investments (43,081)$ -$


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS



PensionTrustFund

ASSETS

Accounts receivable 43,172$ Prepaid items 3,178 Investments:

U.S. Government obligations 146,806 U.S. Government agencies 581,689 Corporate obligations 936,826 Domestic stocks 3,692,462 Temporary investment funds 760,229

Total investments 6,118,012

Total assets 6,164,362

LIABILITIES

Accounts payable 49,830

NET ASSETS

Net assets held in trust for pension benefits 6,114,532$


STATEMENT OF FIDUCIARY NET ASSETS

SEPTEMBER 30, 2009


PensionTrustFund

Additions:Contributions:

Employer 331,310$ State of Florida 97,987Plan members 111,040

Total contributions 540,337

Investment income:Interest and dividends 141,139 Net appreciation in fair value of investments 640,815 Investment expenses (33,420)

Net investment income 748,534 Total additions 1,288,871

Deductions:Participant benefit payments 150,272 Administrative expenses 29,832

Total deductions 180,104

Net increase 1,108,767

Net assets, beginning 5,005,765

Net assets, ending 6,114,532$


STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS



NOTES TO BASIC FINANCIAL STATEMENTS


NOTES TO BASIC FINANCIAL STATEMENTS


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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Town of Lantana, Florida (the Town) was originally incorporated in 1921 pursuant to Chapter 8998, Laws of Florida. It was re-incorporated in 1931 by Chapter 15302, Laws of Florida. The Town operates under a Council-Manager form of government. The Town is governed by an elected Mayor and a four-member Town Council (the “Council”), which appoints a Town Manager. The Town provides the following services: public safety, recreation, sanitation, streets and roads, planning and zoning, water and sewer, and general administrative services.

The basic financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States (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 following is a summary of the Town’s more significant policies:

a. 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 government is considered financially accountable if it appoints a voting majority of an organization’s governing body and it is able to impose its will on that organization. The Town may also be financially accountable if an organization is fiscally dependent on the primary government regardless of the authority of the organization’s governing board. Legally separate organizations outside of the primary government that meet the criteria for financial accountability are considered component units. Based upon the application of these criteria, there were no organizations that met the criteria described above.

b. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the non-fiduciary activities of the Town. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.


NOTES TO BASIC FINANCIAL STATEMENTS (Continued)

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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

b. Government-Wide and Fund Financial Statements (Continued) 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 are reported as separate columns in the fund financial statements. All remaining nonmajor governmental funds are aggregated and reported as nonmajor funds.

c. Measurement Focus, Basis of Accounting and Financial Statement Presentation

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 the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due.

Property taxes, franchise fees, other taxes, licenses, 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.

The Town reports the following major governmental fund:

General Fund – The General Fund is the primary operating fund of the Town and is used to account for all financial resources applicable to the general operations of the Town government, except those required to be accounted for in another fund.

The Town reports the following major enterprise fund:

Water and Sewer – The Water and Sewer Fund is used to account for the provision of water and sewer services to residents of the service area. All activities to provide such services are accounted for in this fund, including administration, generation, transmission, distribution, collection, pumping, treatment, disposal and customer service.



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c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)

Additionally, the Town reports the following fund types:

Internal Service Fund – The Internal Service Fund is used to account for insurance premiums and deductibles which are funded by other Town funds on a cost reimbursement basis. Pension Trust Fund – The Pension Trust Fund accounts for the activities of the Police Relief and Pension Fund, which accumulates resources for pension benefit payments to qualified employees.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The Town has the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Town has elected to not follow subsequent private-sector guidance.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the Town’s utility functions and various other functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

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 Water and Sewer Fund and the Internal Service Fund are charges to customers for sales and services. Operating expenses for the Water and Sewer Fund and the Internal Service Fund include the cost of sales and services, general and administrative expenses, depreciation and amortization. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the Town’s policy to use restricted resources first, then unrestricted resources as needed.



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d. Assets, Liabilities, and Net Assets or Equity

1. Deposits and Investments

Cash and cash equivalents include cash on hand, time and demand deposits. The Town maintains a cash pool that is available for use by all funds. Interest earned on pooled cash is allocated to each of the funds based on the fund’s average equity balance on a monthly basis.

All investments, except the Florida PRIME and Fund B, are reported at fair value, which is based on quoted market prices. The Florida PRIME is recorded at the value of the pool shares (2a-7 like pool), which is fair value. Fund B is a fluctuating NAV pool and is reported based on the fair value factor. Cash and cash equivalents, for purposes of the statement of cash flows, includes pooled cash and investments which are defined as short-term, highly liquid investments with original maturities of three months or less.

2. Interfund Receivables and Payables

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either due to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances.

3. Receivables

Receivables include amounts due from other governments and others for services provided by the Town. Receivables are recorded and revenues are recognized as earned or as specific program expenditures/expenses are incurred. Allowances for uncollectible receivables are based upon historical trends and the periodic aging of receivables.

4. Inventories

Inventories consist principally of materials and supplies held for consumption and are recorded at cost using the first-in first-out method. In the governmental funds, the cost of inventories are recorded as expenditures at the time of purchase, while in the proprietary funds, the cost of inventories are recorded as expenses when consumed. In the governmental funds, reported inventories are offset by a fund balance reserve which indicates that they do not constitute available spendable resources.

5. Restricted Assets

Restricted assets of the enterprise fund consist of bond proceeds restricted for debt service and renewal and replacements under the terms of the outstanding revenue bonds, as well as capacity charges and other revenues of the Water and Sewer System restricted for capital improvements to the facility.



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d. Assets, Liabilities, and Net Assets or Equity (Continued)

6. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial individual cost of $1,000 or more and an estimated useful life in excess of one year. Purchased or constructed assets are recorded at actual cost or estimated historical cost if actual cost is unavailable. Donated capital assets are recorded at estimated fair market value at the date of donation. The Town has elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets acquired since 1980. Infrastructure assets include roads, bridges, sidewalks, lighting and drainage systems and similar assets that are immovable and of value only to the Town. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset’s life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Tangible capital assets of the Town are depreciated using the straight-line method over the following useful lives:

Asset Years

Buildings and improvements 25-50 yearsRoads and streets 25 yearsFurniture, equipment and vehicles 5-10 yearsWater and sewer system 7-50 years

Intangible capital assets which consist of a right of use of the City of Lake Worth wastewater facilities are amortized over periods ranging between 13 and 40 years.

7. Unearned Revenue

Unearned revenue is recorded for governmental fund receivables that are not both measurable and available. In addition, inflows that do not yet meet the criteria for revenue recognition, such as occupational licenses collected in advance, are recorded as unearned revenue in the government-wide and the fund statements.



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8. Compensated Absences

It is the Town's policy to permit employees to accumulate, within certain limits, earned but unused vacation time, sick leave, and compensatory time, which will be paid to employees upon separation from Town service. All vacation and sick leave pay and compensatory time is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for those amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

9. Long-Term Obligations

In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bonds are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

10. Net Assets

Net assets of the government-wide and proprietary funds are categorized as invested in capital assets, net of related debt; restricted or unrestricted. Invested in capital assets, net of related debt, is that portion of net assets that relates to the Town’s capital assets reduced by accumulated depreciation and by any outstanding debt incurred to acquire, construct or improve those assets, excluding unexpended proceeds. Restricted net assets is that portion of net assets 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 assets consist of all net assets that do not meet the definition of either of the other two components.



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11. Fund Equity

In the fund financial statements, governmental funds report reservations of fund balance to indicate the portion of fund balance that is not appropriable for expenditures or is legally segregated by outside parties for a specific purpose. Designations indicate tentative managerial plans or intent to use financial resources in a future period. Undesignated fund balance indicates the portion of fund balance which is available for future use.

12. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2. DEPOSITS AND INVESTMENTS

Deposits

All of the Town’s deposits are held in qualified public depositories pursuant to State of Florida Statutes, Chapter 280, Florida Security for Public Deposits Act. Under the Act, every qualified public depository shall deposit with the Treasurer eligible collateral of the depository to be held subject to his or her order. The Treasurer, by rule, shall establish minimum required collateral pledging levels. The pledging level may range from 25% to 125% of the average monthly balance of public deposits depending upon the depository’s financial condition and establishment period. All collateral must be deposited with an approved financial institution. Any potential losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default.

Investments – Town

The Town has adopted an investment policy in accordance with Florida Statutes to establish guidelines for the efficient management of its cash reserves. The Town is authorized to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, certificates of deposit, the State Board of Administration investment pool, any intergovernmental investment pools authorized pursuant to Chapter 163 of the Florida Statutes, SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency, and securities of any interest in any open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, provided that the portfolio is limited to obligations of the U.S. government, its agencies and instrumentalities and to repurchase agreements fully collateralized by such U.S. government obligations and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian.



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NOTE 2. DEPOSITS AND INVESTMENTS (Continued)

Investments – Town (Continued) The State Board of Administration (SBA) administers the Florida PRIME, (formally known as the Local Government Surplus Funds Trust Fund (LGIP), and the Fund B Surplus Funds Trust Fund. (Fund B), both of which are 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 policies and general operating procedures for the administration of the Florida PRIME and Fund B. The Florida PRIME is not a registrant with the Securities and Exchange Commission (SEC); however, the Board has adopted operating procedures consistent with the requirements for a 2a-7 fund, which permits money market funds to use amortized cost to maintain a constant net asset value (NAV) of $1 per share. The fair value of the position in the Florida PRIME is equal to the value of the pool shares. The Fund B is accounted for as a fluctuating NAV pool. As of September 30, 2009, the fair value factor for Fund B was $ .54915 per share. The Fund B is not subject to participant withdrawal requests. Distributions from Fund B, as determined by the SBA, are effected by transferring eligible cash or securities to the Florida PRIME, consistent with the pro rata allocation of pool shareholders of record at the creation of Fund B. One hundred percent of such distributions from Fund B are available as liquid balance within the Florida PRIME. The investments in the Florida PRIME and Fund B are not insured by FDIC or any other governmental agency. As of September 30, 2009, the Town had the following investments:

WeightedFair Average

Value Maturity

Florida PRIME 24,891$ 33 daysFund B 214,185 6.69 years

239,076$ Interest Rate Risk The Town has an investment policy of structuring the investment portfolio so that the securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity and investing operating funds primarily in short-term securities, money market mutual funds, or similar investment pools unless it is anticipated that long-term securities can be held to maturity without jeopardizing the liquidity requirements. The Town’s investment policy limits the maturities on individual investments to no more than five years.

Credit Risk The Town’s investment policy limits investments to the highest ratings issued by a nationally recognized statistical rating organization (NRSRO). The Florida PRIME is rated AAAm by Standard and Poors. The Fund B is not rated by an NRSO.



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Investments – Town (Continued) Concentration of Credit Risk The Town’s investment policy states that assets shall be diversified to control the risk of loss resulting from concentration of assets to a specific maturity, instrument, issue, dealer, or bank through which these securities are bought and sold. As of September 30, 2009, the value of each position held in the Town’s portfolio is less than 5% in any one issuer.

Investments – Lantana Relief and Pension Fund (LPRPF) The Plan’s Board of Trustees recognizes that the obligations of the Plan are long-term and that

its investment policy should be made with a view toward performance and return over a number of years. The general investment objective is to obtain a reasonable total rate of return defined as interest and dividend income plus realized and unrealized capital gains or losses that commensurate with the prudent investor rule and Chapter 185 of the Florida Statutes. Permissible investments include obligations of the U.S. Treasury and U.S. agencies, high capitalization common or preferred stocks, pooled equity funds, high quality bonds or notes and fixed income funds.

At September 30, 2009, the Plan had the following investments:

Credit Rating by Fair EffectiveInvestment Type Standard & Poor's Value Duration (Years)

U.S. Government obligations AAA 146,806$ 7.20U.S. Government agencies AAA 581,689 5.10Corporate obligations A-AAA 936,826 4.12Temporary investment funds Not rated 760,229 Daily

Total investments 2,425,550$ Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment in debt securities. Generally, the longer the time to maturity, the greater the exposure to interest rate risks. Through its investment policies, the Plan manages its exposure to fair value losses arising from increasing interest rates. The Plan limits the effective duration of its investment portfolio through the adoption of the Lehman Brothers Intermediate Aggregate Bond Index bench mark. Credit Risk Credit risk is the risk that a debt issuer will not fulfill its obligations. The Plan’s investment policy addresses credit risk by limiting investments in bonds and preferred stocks to securities rated investment grade or above by a Nationally Recognized Statistical Rating Organization, unless specifically approved by the Board of Trustees. Securities which are unrated may be purchased, if in the judgment of the investment manager, they would carry an investment grade rating. Consistent with State law, the Plan’s investment guidelines limit its fixed



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Investments – Lantana Relief and Pension Fund (LPRPF) (Continued)

income investments to a quality rating of “A” or equivalent as rated by Moody’s or by Standard & Poor’s bond rating services at the time of purchase. Fixed income investments which are downgraded below the minimum rating must be liquidated at the earliest beneficial opportunity. The Plan’s investments were in compliance with the above at September 30, 2009. Custodial Credit Risk Custodial credit risk is defined as the risk that the Plan may not recover cash and investments held by another party in the event of a financial failure. The Plan requires all securities to be held by a third party custodian in the name of the Plan. Securities transactions between the broker-dealer and the custodian involving the purchase or sale of securities must be made on a “delivery vs. payment” basis to ensure that the custodian will have the security or money, as appropriate, in hand at the conclusion of the transaction. Concentration of Credit Risk The Plan’s investment policy establishes limitations on portfolio composition by investment type and by issuer to limit its exposure to concentration of credit risk. The Board requires that Plan assets be invested with no more than 60% in stocks and convertible securities measured at cost or 70% of the Plan assets at market (fair) value. In addition, the Plan limits investment in common stock (equity investments) as follows: • No more than three percent of the Plan’s assets may be invested in the common or capital

stock of any single corporation.

• The Plan’s investment in the common stock of any single corporation shall not exceed three percent of such corporation’s outstanding common or capital stock.

No investment represents a concentration of 5% of more of net plan assets. Risks and Uncertainties The Plan has investments in a variety of investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities, and the level of uncertainty related to changes in the value of investment securities, it is a least reasonably possible that changes in risks in the near term would materially affect balances and the amounts reported in the statement of plan net assets and the statement of changes in plan net assets.



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NOTE 3. PROPERTY TAXES Ad valorem taxes on property values are assessed as of January 1st and are levied the following October. Taxes are payable on November 1st, with discounts allowed of 1% to 4% if paid prior to March 1st of the following calendar year. All unpaid taxes on real and personal property become delinquent and subject to lien on April 1st. Real and personal property taxes are collected by Palm Beach County and remitted to the Town. State law permits Florida cities to levy a maximum of $10 per $1,000 (10 mills) of assessed taxable value for general government services. The Town levied taxes at a rate of 3.2395 mills, combined with Palm Beach County’s Fire/Rescue rate for the Municipal Service Taxing Unit (MSTU) of 2.95, leaving a margin of 3.8105 mills under the maximum possible assessment of 10 mills.

NOTE 4. RECEIVABLES

Receivables for the Town’s individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts as of September 30, 2009, are as follows:

Water and NonmajorGeneral Sewer Governmental

Fund Fund Funds TotalReceivables:

Accounts receivable 314,131$ 350,062$ -$ 664,193$ Intergovernmental 249,186 107,235 78,852 435,273

563,317 457,297 78,852 1,099,466 Less allowance for uncollectibles (4,680) (14,820) - (19,500)

Net total receivables 558,637$ 442,477$ 78,852$ 1,079,966$

NOTE 5. INTERFUND TRANSFERS

The following is a summary of transfers for the year ended September 30, 2009:

NonmajorGovernmental

Transfers Out Funds

General Fund 350,000$

Transfers In

Transfers are used to (1) move revenues from the fund with collection authorization to the fund servicing debt as debt service principal and interest payments become due, (2) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs.



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NOTE 6. CAPITAL ASSETS

The following summarizes capital asset activity for the fiscal year ended September 30, 2009:

Beginning EndingBalance Additions Deletions Balance

Governmental activities:Capital assets not being depreciated:

Land 110,367$ -$ -$ 110,367$ Construction in Progress - 49,427 - 49,427

110,367 49,427 - 159,794 Capital assets being depreciated:

Roads and streets 22,779,860 19,867 - 22,799,727 Buildings and improvements 5,409,569 1,540,355 (5,960) 6,943,964 Furniture, equipment and vehicles 4,477,245 543,069 (288,730) 4,731,584

Total capital assets being depreciated 32,666,674 2,103,291 (294,690) 34,475,275

Less accumulated depreciation for:Roads and streets (8,322,342) (908,988) - (9,231,330) Buildings and improvements (1,606,602) (186,650) 5,960 (1,787,292) Furniture, equipment and vehicles (3,233,465) (457,243) 288,730 (3,401,978)

Total accumulated depreciation (13,162,409) (1,552,881) 294,690 (14,420,600) Total capital assets being depreciated, net 19,504,265 550,410 - 20,054,675 Governmental activities capital assets, net 19,614,632$ 599,837$ -$ 20,214,469$

Business-type activities:Capital assets not being depreciated:

Land 4,300$ -$ -$ 4,300$ Construction in progress - 356,392 - 356,392

Total capital assets not being depreciated 4,300 356,392 - 360,692

Capital assets being depreciated:Plant and buildings 11,507,245 - (31,862) 11,475,383 Infrastructure 8,764,853 145,714 (230,830) 8,679,737 Equipment 981,271 29,545 (27,597) 983,219

Total capital assets being depreciated 21,253,369 175,259 (290,289) 21,138,339

Less accumulated depreciation for:Plant and buildings (4,308,603) (407,409) 31,862 (4,684,150) Infrastructure (5,315,351) (362,585) 230,830 (5,447,106) Equipment (692,167) (76,571) 27,597 (741,141)

Total accumulated depreciation (10,316,121) (846,565) 290,289 (10,872,397)

Capital assets being amortized:Intangible rights 3,080,157 - - 3,080,157 Less accumulated amortization (1,858,430) (123,849) - (1,982,279)

Total capital assets being amortized, net 1,221,727 (123,849) - 1,097,878 Total capital assets being depreciated

and amortized 12,158,975 (795,155) - 11,363,820 Business-type activities capital assets, net 12,163,275$ (438,763)$ -$ 11,724,512$



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NOTE 6. CAPITAL ASSETS (Continued)

Depreciation expense for the fiscal year ended September 30, 2009 was charged to functions/programs of the Town as follows: Governmental activities:

General government 41,334$ Public safety 259,150 Physical environment 1,056,370 Culture and recreation 196,027

Total depreciation expense – governmental activities 1,552,881$

Business-type activities:Water and sewer 846,565$

Amortization expense was charged to functions as follows:

Business-type activities:

Water and sewer 123,849$

NOTE 7. LONG-TERM DEBT

The following is a summary of the changes in long-term liabilities for the year ended September 30, 2009 for both governmental and business-type activities:

Beginning Ending Due WithinBalance Additions Reductions Balance One Year

Governmental activities:Capital improvement refunding

revenue bonds 780,468$ -$ 90,880$ 689,588$ 94,638$ Promissory note 2,405,514 - 218,736 2,186,778 227,314 Compensated absences 572,796 348,508 320,504 600,800 261,270

Other post-employment benefits - 54,000 3,000 51,000 - Total 3,758,778$ 402,508$ 633,120$ 3,528,166$ 583,222$

Business-type activities:Water and sewer revenue

refunding bonds 6,785,000$ -$ 355,000$ 6,430,000$ 370,000$ Water and sewer revenue bonds 2,927,388 - 242,022 2,685,366 252,090 Less deferred amounts (497,567) - (39,412) (458,155) -

Total bonds payable 9,214,821 - 557,610 8,657,211 622,090 Compensated absences 141,303 69,097 79,066 131,334 57,113

Total 9,356,124$ 69,097$ 636,676$ 8,788,545$ 679,203$

For the governmental activities, compensated absences are liquidated by the General Fund.



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NOTE 7. LONG-TERM DEBT (Continued)

Governmental Activities

Bonds and Notes Payable

The Town, in May 2006, issued $954,000 of Capital Improvement Revenue Refunding Bonds, Series 2006, for the purpose of refunding the Town’s Capital Improvement Revenue Bond, Series 1995 which were issued for the purpose of financing the costs of constructing and equipping a sports complex within the Town and for the acquisition of furniture and other furnishings for the Town’s library. The bonds are fully collateralized by a pledge of public service tax revenues, which have averaged $1,288,100 annually over the last ten years. The total principal and interest remaining on the bonds is $792,577 payable through November 1, 2015. For the current year, principal and interest paid and total public service tax revenues were $121,957 and $1,376,332, respectively. Principal and interest payments are due semi-annually on May 1st and November 1st, with interest at 4.10%. Payments on the bonds are recorded in the Town’s General Fund.

$954,000 Capital Improvement Revenue Refunding Bonds, Series 2006

Annual debt service requirements to maturity are as follows:

Principal Interest TotalYear Ending September 30:

2010 94,638$ 27,319$ 121,957$ 2011 98,558 23,399 121,957 2012 102,641 19,316 121,957 2013 106,892 15,065 121,957 2014 111,320 10,637 121,957 2015-2016 175,539 7,253 182,792

Total debt service requirements 689,588$ 102,989$ 792,577$

The Town, in January 2001, issued a promissory note in an amount not to exceed $5,000,000. The note was issued to finance roadway improvement projects throughout the Town. The interest rate on the note was 66-2/3% of the London InterBank Offering Rate (LIBOR) plus .4667% per annum. During 2002, the Town elected to convert the interest rate to a fixed rate of 3.853% and repay $1,500,000 of outstanding principal. The note is fully collateralized by a pledge of public service tax and local option fuel tax revenues. Public service tax and local option fuel tax revenues combined have averaged $1,583,221 annually over the last nine years. The total principal and interest remaining on the note is $2,559,501, payable through January 1, 2018. For the current year, principal and interest paid and total public service tax and local option fuel tax revenues were $307,578 and $1,636,044, respectively. Principal and interest are payable monthly. Payments on the note are recorded in the Streets and Highways Special Revenue Fund.

Promissory Note, Series 2000



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Governmental Activities (Continued

Bonds and Notes Payable (Continued)

Annual debt service requirements to maturity are as follows: Principal Interest Total

Year Ended September 30:2010 227,314$ 80,264$ 307,578$ 2011 236,228 71,350 307,578 2012 245,491 62,086 307,577 2013 255,118 52,459 307,577 2014 265,123 42,455 307,578 2015-2017 957,504 64,109 1,021,613

Total debt service requirements 2,186,778$ 372,723$ 2,559,501$ Business-Type Activities

Bonds Payable

The Town, in April 1998, issued $9,215,000 of Water and Sewer Revenue Refunding Bonds, Series 1998, for the purpose of refunding all of the Town’s outstanding Water and Sewer Revenue Bonds, Series 1992 and Series 1997. The Series 1992 and Series 1997 Bonds were issued to finance capital improvements to the Town’s water and sewer system. The Series 1998 Bonds are payable from and collateralized by net revenues derived from the operation of the water and sewer system, which have averaged $1,346,292 annually over the last ten years. The total principal and interest remaining on the bond is $8,677,089, payable through October 2021. For the current year, principal and interest paid and net revenues were $672,089 and $1,624,579, respectively. Interest payments are due semi-annually on April 1st and October 1st, with interest rates ranging between 4.55% and 4.95%, and principal payments are due annually on October 1st.

$9,215,000 Water and Sewer Revenue Refunding Bonds, Series 1998

Annual debt service requirements to maturity are as follows:

Principal Interest TotalYear Ended September 30:

2010 370,000$ 300,865$ 670,865$ 2011 385,000 283,781 668,781 2012 405,000 265,707 670,707 2013 425,000 246,512 671,512 2014 445,000 226,172 671,172 2015-2019 2,555,000 782,823 3,337,823 2020-2022 1,845,000 141,229 1,986,229 Total debt service requirements 6,430,000$ 2,247,089$ 8,677,089$



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Business-Type Activities (Continued)

Bonds Payable (Continued)

Bond Covenants

The bond covenants require the Town to fix, establish and maintain rates, fees and other charges so that the revenue collected and other available funds in each fiscal year will not be less than the amount expected to be required for the payment of operating expenses (excluding depreciation and amortization), 110% of the bond service requirements and the reserve requirements.

The provisions of the water and sewer bond resolutions generally provide for:

1. Annual debt service funding by monthly transfers of cash to a reserve account.

2. Early redemption of outstanding bonds at call rates varying between 100% to 101% of

the instrument’s face value depending on the bonds and call date.

At September 30, 2009, the Town was in compliance with the bond covenants.

The Town purchased insurance from Financial Guaranty Insurance Corporation (FGIC) at the time of the bond issuance for the purpose of enhancing the creditworthiness of the bonds. Effective September 30, 2008, FGIC entered into a Reinsurance Agreement with MBIA Insurance Corporation (MBIA), transferring the insurance to MBIA. MBIA subsequently transferred all public insurance to National Public Finance Guarantee Corporation (National), an affiliate of MBIA. As of September 30, 2009, Standard & Poor’s Ratings Services affirmed its ‘A’ ratings on National and deemed its outlook to be “developing.”

The Town, in October 2003, issued $4,000,000 in Water and Sewer Revenue Bonds, Series 2003, for the purpose of financing capital improvements to the Town’s water and sewer system. The Series 2003 Bonds are payable from and collateralized by net revenues derived from the operation of the water and sewer system, which have averaged $1,346,292 annually over the last ten years Total principal and interest remaining on the bond is $3,274,209 payable through October 2018. For the current year, principal and interest paid and net revenues were $363,934 and $1,624,579, respectively. Interest payments are due semi-annually on April 1st and October 1st, with interest at 4.161%, and principal payments are due annually on October 1st.

$4,000,000 Water and Sewer Revenue Bonds, Series 2003



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Business-Type Activities (Continued)

Bonds Payable (Continued)

Annual debt service requirements to maturity are as follows: Principal Interest Total

Year Ended September 30:2010 252,090$ 111,711$ 363,801$ 2011 262,577 101,224 363,801 2012 273,500 90,301 363,801 2013 284,877 78,924 363,801 2014 296,728 67,073 363,801 2015-2019 1,315,595 139,609 1,455,204 Total debt service requirements 2,685,367$ 588,842$ 3,274,209$

Bond Covenants

The bond covenants require the Town to establish a Water and Sewer Revenue Bonds Sinking Fund Account, which is pledged to and charged with the payment of the principal, premium, if any, and the interest on all bonds issued and outstanding and to deposit to the credit of said such fund a sufficient amount of the net revenues of the Town’s Water and Sewer System to provide for payment of the principal, premium, if any, and the interest on the bonds issued and as the same shall become due and to create a reserve for such purpose.

These bonds may be redeemed, in whole or in part, at any time provided that the Town pays a redemption premium to the holder.

At September 30, 2009, the Town was in compliance with the bond covenants.

NOTE 8. EMPLOYEE RETIREMENT SYSTEMS Lantana Police Relief and Pension Fund (LPRPF)

The Town sponsors the LPRPF, a single employer defined benefit plan. The Plan is governed by a five member Board of Trustees. The Plan is reported as a pension trust fund and is included as part of the Town’s reporting entity.

Plan Description

The Plan was established by Ordinance enacted by the Town Council to provide for the creation and operation of the LPRPF. All full time certified police department employees are covered under this plan.



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NOTE 8. EMPLOYEE RETIREMENT SYSTEMS (Continued) Plan Description (Continued) The Plan provides retirement, death and disability benefits for its participants. A participant may retire with normal benefits after reaching age 50 and accumulating 10 or more years of credited service. Normal retirement benefits are based on 3% of the participant’s final average salary multiplied by the number of credited service years rendered. The final average salary for purposes of calculating benefits is the participant’s average salary during the highest 5 years of a participant’s last 10 years of employment. Salary does not include lump sum payments for accumulated leave.

Effective January 8, 2001, a deferred retirement option plan (DROP) was adopted. Eligible participants may elect to participate in the DROP while continuing their active employment with the Town. Upon election, the participant becomes a retiree for all Plan purposes so that further benefits cease to accrue. Benefit payments that would have been payable to the participant as a result of retirement are accumulated and invested in individual participant accounts and are payable to the participant at termination of employment. At September 30, 2009, the Plan’s membership consisted of the following:

Retirees and beneficiaries receiving benefits 6 Terminated employees entitled to benefits but not yet receiving them 6 Active members 30

42

The LPRPF issues separate audited financial statements which can be obtained by contacting the Town’s Finance Department.

Basis of Accounting

The Plan’s financial statements are prepared using the accrual basis of accounting. Contributions from the Plan’s members are recognized as revenue in the period in which the contributions are due. Contributions from the Town, as calculated by the Plan’s actuary, are recognized as revenue when due and when the Town has made a formal commitment to provide the contributions. Expenses are recognized in the accounting period incurred, if measurable. Benefits and refunds are recognized when due and payable in accordance with the terms of the Plan.

Method Used to Value Investments

Investments are reported at fair value. Money market mutual funds are reported at cost, which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price or exchange rate. Net appreciation (depreciation) in fair value of investments includes the difference between cost and fair value of investments held as well as the net realized gains or losses from securities sold. Interest and dividend income is recognized on the accrual basis when earned. Purchases and sales of investments are recorded on a trade date basis.



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NOTE 8. EMPLOYEE RETIREMENT SYSTEMS (Continued) Funding Policy

Contribution requirements are established and may be amended by the Town Council. The contribution requirements are determined on the benefit structure established by the Town. Members are required to contribute 6.21% of their annual covered earnings. Pursuant to Chapter 185 of the Florida Statutes, a premium tax on certain casualty insurance contracts written on Lantana properties is collected by the State and is remitted to the Plan. This amount totaled $97,987 for the year ended September 30, 2009. This amount was recognized as expenditure and revenue in the General Fund. The Town is required to contribute the remaining amounts necessary to finance the benefits through periodic contributions of actuarially determined amounts. For the year ended September 30, 2009, the Town’s contribution was 18.42% of annual covered earnings. Administrative costs are financed through investment earnings.

Annual Pension Cost and Net Pension Asset

The Town’s current contribution was determined through an actuarial valuation performed as of October 1, 2008. The Plan uses the aggregate actuarial cost method to determine required contributions. Significant actuarial assumptions used to compute the annual contribution requirement are as follows:

Valuation date October 1, 2008 Actuarial cost method Aggregate Amortization method N/A Remaining amortization period N/A Asset valuation method 5 year smoothed market value Actuarial assumptions: Investment rate of return* 8.00% compounded annually Projected salary increases* 6.00% per year *Includes inflation at 4.00% per year Cost of living adjustments N/A

The aggregate actuarial cost method is used to determine the annual required contribution of the employer for the Plan. Because the method does not identify or separately amortize unfunded actuarial liabilities, information about the Plan’s funded status and funding progress has been prepared using the entry age actuarial cost method for that purpose, and the information presented is intended to serve as a surrogate for the funded status and funding progress of the Plan.



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NOTE 8. EMPLOYEE RETIREMENT SYSTEMS (Continued) Annual Pension Cost and Net Pension Asset (Continued)

The Town’s annual pension cost and net pension asset for the current year is as follows: Annual required contribution (ARC) 423,863$ Interest on net pension asset (7,320) Adjustment to annual required contribution 16,900 Annual pension cost (APC) 433,443 Contributions made (423,863) Increase in net pension asset 9,580 Net pension asset, beginning of year (96,904) Net pension asset, end of year (87,324)$

Annual Percentage NetYear Pension of APC Pension

Ended Cost (APC) Contributed Asset

9/30/07 $410,683 102.6% (69,922)$ 9/30/08 383,575 107.0% (96,904) 9/30/09 433,443 97.8% (87,324)

Three-Year Trend Information

Funded Status and Funding Progress

The funded status of the plan as of October 1, 2008, the most recent actuarial valuation date, is as follows:

Actuarial Actuarial Accrued Unfunded UAAL as a %Value of Liability (AAL) - AAL Funded Covered of CoveredAssets Entry Age* (UAAL) Ratio Payroll Payroll

(a) (b) (b) - (a) (a) / (b) (c) ((b - a) / c)

5,168,480$ $6,280,340 1,111,860$ 82.3% 1,801,385$ 61.7%

* For purposes of this schedule, the AAL for the Plan is determined using the entry age actuarial cost method. Note that the ARC for the Plan is calculated using the aggregate actuarial cost method.

The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, presents multiyear trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AALs for benefits.



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NOTE 8. EMPLOYEE RETIREMENT SYSTEMS (Continued) Defined Contribution Plan

The Town of Lantana General Employees’ Defined Contribution Plan was established by the Town and is administered by Prudential Securities to provide benefits at retirement for all of its full-time employees except police officers. Contributions equal 11% of each general employee’s salary. The Plan permits participant nondeductible voluntary contributions in the amount of 1% to 10% of the participant’s salary. Participants are fully vested after five years of service. Plan revisions and contribution requirements are established and may be amended by the Town Council. The covered payroll for the plan was $2,634,740. The Town’s total payroll for the same period was $4,961,094. Town contributions for the year ended September 30, 2009, were $289,822. The amounts of employee contributions made for the year ended September 30, 2009, were $3,943.

Deferred Compensation Plan

The Town of Lantana General Employees’ Deferred Compensation Plan (457 Plan) was established by the Town and is administered by Prudential Securities to provide benefits at retirement for all of its full-time personnel. Contributions are voluntary. For full-time management personnel, the Town contributes 4% of their salary. Participants are fully vested immediately. Plan revisions and contribution requirements are established and may be amended by the Town Council. The covered payroll for the plan was $766,132. The Town’s total payroll for the same period was $4,961,094. Town contributions for the year ended September 30, 2009, were $29,790. The amounts of employee contributions for the year ended September 30, 2009 were $115,232.

NOTE 9. OTHER POST EMPLOYMENT BENEFITS

Plan Description

The Town provides an optional single employer defined benefit post-employment healthcare plan to eligible individuals. The plan allows its employees and their beneficiaries, at their own cost, to continue to obtain health, dental and other insurance benefits upon retirement. The benefits of the plan conform to Florida Statutes, which are the legal authority for the plan. The plan has no assets and does not issue a separate financial report.

Funding Policy and Annual OPEB Cost

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. However, the Town’s actuaries, in their actuarial valuation, calculate an offset to the cost of these benefits as an Employer Contribution, based upon an implicit rate subsidy. This offset equals the total age-adjusted costs paid by the Town or its active employees for coverage of the retirees and their dependents for the year net of the retiree’s own payments for the year.



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NOTE 9. OTHER POST EMPLOYMENT BENEFITS (Continued)

Funding Policy and Annual OPEB Cost (Continued)

The annual other post employment benefit (OPEB) cost is calculated based on the annual required contribution of the employer, an amount actuarially determined in accordance with GASB Statement No. 45. The annual required contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The annual OPEB cost for the Town for the current year and the related information is as follows:

Required contribution rates: Employer Pay-as-you-go Plan members N/A

Normal Cost 30,000$ Interest on Normal Cost - Amortization 24,000 Annual OPEB cost 54,000 Contributions made (3,000) Increase in net OPEB obligation 51,000 Net OPEB obligation, beginning of year - Net OPEB obligation, end of year 51,000$

The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for 2009 was:

Fiscal year ended 9/30/2009Annual OPEB cost 54,000$ Percentage of OPEB cost contributed 6%Net OPEB obligation 51,000$

Funded Status and Funding Progress

The funded status of the plan as of October 1, 2008 was as follows:

Actuarial Unfunded UAAL as a %Value of Actuarial Accrued AAL Funded Covered of CoveredAssets Liability (AAL) - (UAAL) Ratio Payroll Payroll

(a) (b) (b) - (a) (a) / (b) (c) ((b - a) / c)

-$ $263,000 $263,000 0.0% 4,488,000$ 5.9%



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NOTE 9. OTHER POST EMPLOYMENT BENEFITS (Continued)

Funded Status and Funding Progress (Continued)

The actuarial valuation for the calculation of OPEB involves estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presented as required supplementary information is designed to provide multi-year trend information to show whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. However, the Town has not contributed assets to the plan at this time

Actuarial Methods and Assumptions

Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the Town and the plan members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows:

Valuation date October 1, 2008 Actuarial cost method Project unit credit Amortization method 15-year open period; level-dollar payment Actuarial assumptions: Investment rate of return* 4.00% compounded annually *Includes inflation at 2.75% per year Healthcare cost trend rate(s): Insurance Premiums Select Rates 10.00% for 2008/09 graded to 6.00% for 2016/17 Ultimate rate 5% per annum

NOTE 10. INTERLOCAL AGREEMENTS Police Services

The Town has entered into an Interlocal Agreement for the provision of police services by the Town of Lantana within the Town limits of Hypoluxo. The term of the agreement is five years expiring on September 30, 2014. The Town received $427,235 from Hypoluxo during the year ended September 30, 2009.



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NOTE 11. RISK MANAGEMENT

The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Town carries commercial insurance. The Town is also covered by Florida Statutes under the Doctrine of Sovereign Immunity which effectively limits the amount of liability of municipalities to individual claims of $100,000/$200,000 for all claims relating to the same accident. There were no changes in insurance coverage from the prior year and there were no settlements that exceeded insurance coverage in the last three years.

NOTE 12. COMMITMENTS AND CONTINGENCIES Grants Grant monies received and disbursed by the Town are for specific purposes and may be subject

to audit by the grantor agencies. Such audits may result in requests for reimbursements due to disallowed expenditures or other actions by grantor agencies. The Town does not believe that such disallowances or other actions taken by the grantor agencies, if any, would have a material effect on the financial position of the Town.

REQUIRED SUPPLEMENTARY INFORMATION

Variance with Final Budget

PositiveOriginal Final Actual (Negative)

Revenues:Taxes 5,245,000$ 5,245,000$ 5,312,145$ 67,145$ Licenses and permits 409,750 409,750 389,827 (19,923) Intergovernmental 1,542,230 1,692,230 1,642,493 (49,737) Charges for services 1,193,620 1,228,620 1,227,443 (1,177) Fines and forfeitures 98,000 98,000 96,680 (1,320) Investment income 390,000 390,000 72,207 (317,793) Miscellaneous 44,050 66,105 121,765 55,660

Total revenues 8,922,650 9,129,705 8,862,560 (267,145)


General governmentAdministration 206,880 210,782 195,547 15,235 Finance and administration services 356,677 379,189 326,642 52,547 Legislative 88,530 88,530 80,534 7,996 Legal 123,720 134,115 132,130 1,985 Non-departmental 138,600 238,595 28,783 209,812

Total general government 914,407 1,051,211 763,636 287,575

Physical environment:Utilities 50,337 50,337 40,361 9,976 Operations Department 2,361,631 2,521,027 2,116,764 404,263

Total physical environment 2,411,968 2,571,364 2,157,125 414,239

Public safety:Police 4,079,505 4,130,978 3,964,997 165,981 Development Services 657,451 657,451 598,520 58,931

Total public safety 4,736,956 4,788,429 4,563,517 224,912

Culture and recreation:Library 160,802 160,802 152,357 8,445 Special events 80,000 80,000 49,182 30,818

Total culture and recreation 240,802 240,802 201,539 39,263

Capital outlay 281,500 2,915,646 1,983,247 932,399

Debt service:Principal 91,350 91,350 90,880 470 Interest 31,150 31,150 31,077 73

Total debt service 122,500 122,500 121,957 543 Total expenditures 8,708,133 11,689,952 9,791,021 1,898,931

Excess (deficiency) of revenues over expenditures 214,517 (2,560,247) (928,461) 1,631,786

Other financing uses - transfers out (350,000) (350,000) (350,000) -

Net change in fund balance (135,483) (2,910,247) (1,278,461) 1,631,786

Fund balance, beginning 135,483 2,910,247 10,869,911 7,959,664

Fund balance, ending -$ -$ 9,591,450$ 9,591,450$

Budgeted Amounts


BUDGETARY COMPARISON SCHEDULEGENERAL FUND


See note to required supplementary information.-49-


NOTE TO BUDGETARY COMPARISON SCHEDULE

FISCAL YEAR ENDED SEPTEMBER 30, 2009

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NOTE 1. BUDGETS AND BUDGETARY ACCOUNTING

State of Florida Statutes require that all municipal governments establish budgetary systems and approve balanced annual operating budgets. The Town Council annually adopts an operating budget and appropriates funds for the General Fund and Special Revenue Funds, except for the Police Forfeiture Fund.

The procedures for establishing budgetary data are as follows:

By July 1st of each year, the Property Appraiser certifies the tax roll for the Town. The tax roll is used in formulating the proposed millage rate for the coming year. Thereafter, the following time table must be adhered to:

• Within 45 days, the Town Manager must submit a proposed operating budget to the

Council. The proposed budget includes expenditures and the means of financing them.

• Between 65-80 days from the date of certification (September 3rd – September 18th), the Town must hold a tentative budget and millage hearing. This hearing cannot be held sooner than ten days following the mailing of notices by the Property Appraiser (August 24th).

• Within 15 days of the tentative budget and millage hearing (September 18th – September 30th), the Town must advertise a final hearing on the budget.

• Not less than two or more than five days after the advertisement (September 20th – October 8th), a final hearing adopting the budget and millage is held.

• Within three days after the receipt of final value, the Finance Director completes form DR-422 and returns it to the Property Appraiser.

• Within 30 days of final millage and budget adoption, the Town must certify compliance with Section 200.065 and 200.068, Florida Statutes, to the Department of Revenue.

Budgets are adopted on the modified accrual basis of accounting, consistent with accounting principles generally accepted in the United States. All appropriations lapse at fiscal year end unless encumbered or specifically designated to be carried forward to the subsequent year. Changes or amendments to the total budgeted expenditures of the Town must be approved by the Council. The legal level of control is at the departmental level.

During the year, supplemental appropriations in the General Fund totaled $2,981,819. The budgeted amounts presented in the accompanying financial statements are presented as amended by the Council.

Actuarial Actuarial Accrued UAAL as a %Actuarial Value of Liability (AAL) - Unfunded AAL Funded Covered of CoveredValuation Assets Entry Age * (UAAL) Ratio Payroll Payroll

Date (a) (b) (b) - (a) (a) / (b) (c) ((b - a) / c)

10/1/2003 2,704,054$ $3,283,969 $ 579,915 82.3% 1,457,905$ 39.8%10/1/2004 2,952,595 3,650,629 698,034 80.9 1,466,225 47.610/1/2005 3,303,351 4,284,717 981,366 77.1 1,599,814 61.310/1/2006 3,776,705 4,645,938 869,233 81.3 1,560,307 55.710/1/2007 4,670,639 5,596,748 926,109 83.5 1,729,150 53.610/1/2008 5,168,480 6,280,340 1,111,860 82.3 1,801,385 61.7

* The annual required contribution (ARC) is calculated using the aggregate actuarial cost method. Information in thisschedule is calculated using the entry age actuarial cost method as a surrogate for the funding progress of the plan.


LANTANA POLICE RELIEF AND PENSION FUND (LPRPF)

SCHEDULE OF FUNDING PROGRESS


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Actuarial UAAL as a %Actuarial Value of Actuarial Accrued Unfunded AAL Funded Covered of CoveredValuation Assets Liability (AAL) - (UAAL) Ratio Payroll Payroll

Date (a) (b) (b) - (a) (a) / (b) (c) ((b - a) / c)

10/1/2008 - $263,000 $263,000 0.0% 4,488,000$ 5.9%

The above schedule reflects data for one year only due to this being the first year of implementation ofGASB Statement No. 45.


OTHER POST-EMPLOYMENT BENEFITS (OPEB)


SCHEDULE OF FUNDING PROGRESS

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NONMAJOR GOVERNMENTAL FUNDS

Special Revenue Funds Recreation Programs Fund – This fund is used to account for funds to be used for recreational and athletic programs at the sports complex. Streets and Highways Fund – This fund is used to account for financial resources that are restricted for street and highway improvements. Grants Fund – This fund is used to account for funds received through inter-local agreements between the Town and other governmental entities. Police Education Fund – This fund is used to account for funds designated by Florida Statutes for training and education of law enforcement personnel. Police Forfeiture Fund – This fund is used to account for state and local forfeitures allocated to the Town.

Recreation Streets and Police PolicePrograms Highways Grants Education Forfeiture Total

ASSETSCash and cash equivalents 117,330$ 884,597$ -$ 8,968$ 157,604$ 1,168,499$ Investments - 9,643 - - - 9,643 Intergovernmental receivables - 58,775 19,821 256 - 78,852

Total assets 117,330$ 953,015$ 19,821$ 9,224$ 157,604$ 1,256,994$

LIABILITIES AND FUND BALANCES

Liabilities - Accounts payable and accrued liabilities -$ 27,474$ 19,821$ -$ 77,499$ 124,794$

Fund balances:Unreserved, designated for: Subsequent year's expenditures 53,990 - - - - 53,990

Capital improvements - 575,199 - - - 575,199 Unreserved and undesignated 63,340 350,342 - 9,224 80,105 503,011

Total fund balances 117,330 925,541 - 9,224 80,105 1,132,200 Total liabilities and fund balances 117,330$ 953,015$ 19,821$ 9,224$ 157,604$ 1,256,994$

Special Revenue Funds


COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS

SEPTEMBER 30, 2009

-53-

Recreation Streets and Police PolicePrograms Highways Grants Education Forfeiture Total

Revenues:Taxes -$ 259,712$ -$ -$ -$ 259,712$ Intergovernmental - 17,359 58,294 - - 75,653 Charges for services 8,827 - - - - 8,827 Fines and forfeitures - - - 4,438 21 4,459 Investment income 438 119 - - 687 1,244 Miscellaneous - - - - 600 600

Total revenues 9,265 277,190 58,294 4,438 1,308 350,495


Physical environment - 228,686 - - - 228,686 Public safety - - 36,781 - 30,421 67,202

Capital outlay - 42,992 21,513 - 77,004 141,509 Debt service:

Principal - 218,736 - - - 218,736 Interest - 88,842 - - - 88,842

Total expenditures - 579,256 58,294 - 107,425 744,975

Excess (deficiency) of revenuesover expenditures 9,265 (302,066) - 4,438 (106,117) (394,480)

Other financing sources - transfers in - 350,000 - - - 350,000

Net change in fund balances 9,265 47,934 - 4,438 (106,117) (44,480)

Fund balances, beginning of year 108,065 877,607 - 4,786 186,222 1,176,680 Fund balances, end of year 117,330$ 925,541$ -$ 9,224$ 80,105$ 1,132,200$

Special Revenue Funds


COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS


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Variance with Variance with Variance with Variance withFinal Budget Final Budget Final Budget Final Budget

Final Positive Final Positive Final Positive Final PositiveBudget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)

Revenues:Taxes -$ -$ -$ 247,000$ 259,712$ 12,712$ -$ -$ -$ -$ -$ -$ Intergovernmental - - - 150,000 17,359 (132,641) 359,058 58,294 (300,764) - - - Charges for services 11,750 8,827 (2,923) - - - - - - - - - Fines and forfeitures - - - - - - - - - 4,350 4,438 88 Investment income 500 438 (62) 9,000 119 (8,881) - - - - - -

Total revenues 12,250 9,265 (2,985) 406,000 277,190 (128,810) 359,058 58,294 (300,764) 4,350 4,438 88


Physical environment: Public works and utilities - - - 285,204 228,686 56,518 - - - - - - Public safety: Police - - - - - - 40,366 36,781 3,585 5,000 - 5,000

Capital outlay - - - 618,191 42,992 575,199 318,692 21,513 297,179 - - - Debt service:

Principal - - - 219,000 218,736 264 - - - - - - Interest - - - 89,500 88,842 658 - - - - - -

Total expenditures - - - 1,211,895 579,256 632,639 359,058 58,294 300,764 5,000 - 5,000

Excess (deficiency) of revenues over expenditures 12,250 9,265 (2,985) (805,895) (302,066) 503,829 - - - (650) 4,438 5,088

Other financing sources - transfers in - - - 350,000 350,000 - - - - - - -

Net change in fund balances 12,250 9,265 (2,985) (455,895) 47,934 503,829 - - - (650) 4,438 5,088

Fund balances, beginning of year (12,250) 108,065 120,315 455,895 877,607 421,712 - - - 650 4,786 4,136

Fund balances, end of year -$ 117,330$ 117,330$ -$ 925,541$ 925,541$ -$ -$ -$ -$ 9,224$ 9,224$

GrantsRecreation Programs Streets and Highways Police Education


SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - NONMAJOR GOVERNMENTAL FUNDS


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STATISTICAL SECTION

This part of the Town of Lantana's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town's overall financial health.

Contents Page

Financial TrendsThese schedules contain trend information to help the reader understand how the Town's financial performance and well-being have changed over time.Net Assets by Component 56Changes in Net Assets 57-58Fund Balances of Governmental Funds 59Changes in Fund Balances of Governmental Funds 60

Revenue CapacityThese schedules contain information to help the reader assess the Town's most significant local revenue source, the property tax.Net Assessed Value and Estimated Actual Value of Taxable Property 61Property Tax Rates - Direct and Overlapping Governments 62Principal Property Taxpayers 63Property Tax Levies and Collections 64

Debt CapacityThese schedules present information to help the reader assess the affordability of the Town's current levels of outstanding debt and the Town's ability to issue additional debt in the future.Ratios of Outstanding Debt by Type 65Direct and Overlapping Governmental Activities Debt 66Pledged Revenue Coverage 67-69

Demographic and Economic InformationThese schedules offer demographic and economic indicators to help the reader understand the environment within which the Town's financial activities take place. Demographic and Economic Statistics 70Principal Employers 71

Operating InformationThese schedules contain service and infrastructure data to help the reader understand how the information in the Town's financial report relates to the services the Town provides and the activities it performs.Full-Time Equivalent Village Government Employees by Function 72Operating Indicators by Function/Program 73Capital Asset Statistics by Function/Program 74

MiscellaneousThese schedules contain supplemental data and statistics.

Miscellaneous Statistics 75-76Schedule of Insurance in Force 77

Sources: Unless other wise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The Town implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year.

STATISTICAL SECTION

2003 2004 2005 2006 2007 2008 2009Governmental activities:

Invested in capital assets, net of related debt 19,217,022$ 18,647,932$ 18,161,481$ 17,468,270$ 17,272,598$ 16,428,650$ 17,338,103$ Restricted - - 221,078 138,770 174,081 186,222 80,105 Unrestricted 4,554,972 5,061,731 7,249,743 9,000,093 10,751,356 12,020,537 10,824,045

Total governmental activities net assets 23,771,994 23,709,663 25,632,302 26,607,133 28,198,035 28,635,409 28,242,253

Business-type activities:Invested in capital assets, net of related debt 2,981,173 2,246,646 2,559,734 2,871,372 3,245,183 2,948,454 3,067,301 Restricted 2,536,412 3,805,732 1,757,093 - - - - Unrestricted 1,510,368 1,532,638 3,751,759 5,407,600 6,136,572 6,362,755 6,569,580

Total business-type activities net assets 7,027,953 7,585,016 8,068,586 8,278,972 9,381,755 9,311,209 9,636,881

Primary government:Invested in capital assets, net of related debt 22,198,195 20,894,578 20,721,215 20,339,642 20,517,781 19,377,104 20,405,404 Restricted 2,536,412 3,805,732 1,978,171 138,770 174,081 186,222 80,105 Unrestricted 6,065,340 6,594,369 11,001,502 14,407,693 16,887,928 18,383,292 17,393,625

Total primary government net assets, 30,799,947$ 31,294,679$ 33,700,888$ 34,886,105$ 37,579,790$ 37,946,618$ 37,879,134$

Note: Data not available prior to fiscal year 2003 implementation of Governmental Accounting Standards Board Statement No. 34,Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments.

Fiscal Year


NET ASSETS BY COMPONENT

LAST SEVEN FISCAL YEARS

(ACCRUAL BASIS OF ACCOUNTING)

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2003 2004 2005 2006 2007 2008 2009Governmental activities:

General government 521,921$ 687,691$ 838,825$ 1,349,321$ 649,111$ 675,795$ 802,674$ Physical environment 2,032,885 3,214,927 3,336,251 3,317,440 2,882,732 2,894,199 3,407,583 Public safety 5,365,843 5,745,800 5,809,286 6,448,047 6,842,400 7,277,120 4,854,172 Culture/recreation 797,762 1,068,374 693,299 709,814 1,797,056 1,799,145 406,927 Interest on long-term debt 204,487 195,626 164,251 170,689 146,891 131,221 117,721

Total governmental activities expenses 8,922,898 10,912,418 10,841,912 11,995,311 12,318,190 12,777,480 9,589,077

Business-type activities:Utility - water and sewer 3,478,989 4,090,626 4,381,072 5,110,082 4,761,331 4,807,590 4,639,241

Total business-type activities expenses 3,478,989 4,090,626 4,381,072 5,110,082 4,761,331 4,807,590 4,639,241 Total primary government expenses 12,401,887$ 15,003,044$ 15,222,984$ 17,105,393$ 17,079,521$ 17,585,070$ 14,228,318$

Program revenues:Governmental activities:

Charges for services: General government 868,661$ 1,131,486$ 1,751,449$ 812,254$ 758,737$ 597,033$ 511,352$ Physical environment 711,194 718,797 772,121 816,763 829,683 820,735 813,309 Public safety 494,957 546,080 501,851 688,660 615,906 802,005 798,668 Culture and recreation 233,220 273,282 248,170 220,930 243,930 206,786 181,142 Operating grants and contributions 54,000 54,000 54,000 1,309,705 568,558 453,677 491,802 Capital grants and contributions 621,692 908,813 1,424,077 121,871 82,206 18,034 38,872

Total governmental activities program revenues 2,983,724 3,632,458 4,751,668 3,970,183 3,099,020 2,898,270 2,835,145

Business-type activities:Charges for services: Utility - water and sewer 5,009,740 4,566,602 4,722,012 4,936,853 4,903,079 4,599,751 4,834,025 Operating grants and contributions - - - 126,718 - - - Capital grants and contributions - - - - - - 145,735

Total business-type activities program revenues 5,009,740 4,566,602 4,722,012 5,063,571 4,903,079 4,599,751 4,979,760 Total primary government program revenues 7,993,464$ 8,199,060$ 9,473,680$ 9,033,754$ 8,002,099$ 7,498,021$ 7,814,905$

(Continued)

Fiscal Year


CHANGES IN NET ASSETS



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2003 2004 2005 2006 2007 2008 2009Net (expense) revenue:

Governmental activities (5,939,174)$ (7,279,960)$ (6,090,244)$ (8,025,128)$ (9,219,170)$ (9,879,210)$ (6,753,932)$ Business-type activities 1,530,751 475,976 340,940 (46,511) 141,748 (207,839) 340,519

Total primary government net expense (4,408,423)$ (6,803,984)$ (5,749,304)$ (8,071,639)$ (9,077,422)$ (10,087,049)$ (6,413,413)$

General revenues and other changes in net assets:Governmental activities:

Taxes:Property taxes 3,447,807$ 3,963,648$ 4,404,452$ 5,279,689$ 6,851,101$ 6,575,098$ 3,166,215$ Utility taxes 807,516 838,935 888,606 932,497 938,044 935,562 918,889 Franchise fees based on gross receipts 507,427 540,964 580,710 720,521 782,692 804,092 772,731

Communications services taxes 492,177 469,139 482,655 504,975 491,582 493,392 409,214 Sales and use tax 657,703 716,065 730,032 748,822 762,358 693,442 605,504

State revenue sharing - unrestricted 239,216 282,994 347,761 356,270 348,052 323,426 289,023 Investment income - unrestricted 102,185 88,570 226,476 429,991 586,736 393,206 73,451 Miscellaneous 324,745 317,314 44,522 27,194 49,507 98,366 125,749

Total governmental activities 6,578,776 7,217,629 7,705,214 8,999,959 10,810,072 10,316,584 6,360,776

Business-type activities:Investment income (loss) - unrestricted 31,808 81,087 142,630 256,897 290,881 109,918 (14,847) Gain on sale of capital assets - - - - - 27,375 -

Total business-type activities 31,808 81,087 142,630 256,897 290,881 137,293 (14,847) Total primary government 6,610,584$ 7,298,716$ 7,847,844$ 9,256,856$ 11,100,953$ 10,453,877$ 6,345,929$

Change in net assets:Governmental activities 639,602$ (62,331)$ 1,614,970$ 974,831$ 1,590,902$ 437,374$ (393,156)$ Business-type activities 1,562,559 557,063 483,570 210,386 432,629 (70,546) 325,672

Total primary government 2,202,161$ 494,732$ 2,098,540$ 1,185,217$ 2,023,531$ 366,828$ (67,484)$


Fiscal Year

(Continued)


CHANGES IN NET ASSETS



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2003 2004 2005 2006 2007 2008 2009General fund:

Reserved 549,098$ 393,460$ 521,091$ 11,639$ 10,609$ 12,420$ 15,752$ Unreserved 3,984,270 5,054,466 7,308,389 9,163,232 10,268,826 10,857,491 9,575,698

Total general fund 4,533,368 5,447,926 7,829,480 9,174,871 10,279,435 10,869,911 9,591,450

All other governmental funds:Reserved 43,887 86,902 289,449 - - - - Unreserved, reported in:

Special revenue funds 445,548 59,357 64,265 697,924 850,676 1,176,680 1,132,200 Total all other governmental funds 489,435 146,259 353,714 697,924 850,676 1,176,680 1,132,200 Total governmental funds 5,022,803$ 5,594,185$ 8,183,194$ 9,872,795$ 11,130,111$ 12,046,591$ 10,723,650$


Fiscal Year


FUND BALANCES OF GOVERNMENTAL FUNDS


(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

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2003 2004 2005 2006 2007 2008 2009Revenues:

Taxes 5,254,927$ 6,797,997$ 7,394,124$ 7,729,655$ 9,365,059$ 9,001,290$ 5,571,857$ Licenses and permits 462,126 578,429 560,552 554,432 453,015 433,024 389,827 Intergovernmental 1,954,474 1,068,655 2,135,287 2,325,604 1,770,497 1,577,748 1,718,146 Charges for services 1,159,797 1,184,359 1,218,922 1,242,759 1,324,427 1,316,937 1,236,270 Fines and forfeitures 247,726 258,170 377,780 300,262 221,991 269,707 101,139 Contributions 36,626 12,750 - - - - - Investment income 102,185 88,570 226,476 429,991 586,736 393,206 73,451 Miscellaneous 432,375 678,663 809,371 368,155 166,667 133,520 122,365

Total revenues 9,650,236 10,667,593 12,722,512 12,950,858 13,888,392 13,125,432 9,213,055


General government 529,853 596,746 812,553 1,330,565 637,661 635,381 763,636 Physical environment 2,468,530 1,535,651 2,269,492 2,320,739 1,935,017 1,910,797 2,385,811 Public safety 5,293,524 5,466,873 5,554,987 6,231,434 6,951,470 7,232,359 4,630,719 Culture and recreation 727,842 818,590 571,514 549,748 1,701,660 1,612,528 201,539 Capital outlay 680,900 1,339,161 370,787 413,958 891,365 303,985 2,124,756

Debt service:Principal 261,774 543,768 519,278 486,100 366,534 378,815 309,616 Interest and fiscal charges 205,947 201,790 177,169 171,975 147,369 135,087 119,919

Total expenditures 10,168,370 10,502,579 10,275,780 11,504,519 12,631,076 12,208,952 10,535,996

Excess (deficiency) of revenues over expenditures (518,134) 165,014 2,446,732 1,446,339 1,257,316 916,480 (1,322,941)

Other financing sources (uses):Transfers in 22,759 5,342 84,583 483,500 325,000 573,546 350,000 Transfers out (22,759) (5,974) (84,583) (483,500) (325,000) (573,546) (350,000) Bonds issued 234,000 407,000 - - - - - Refunding bonds issued - - - 954,000 - - - Sale of capital assets 2,125 - - - - - - Capital lease - - - 243,262 - - - Payment for current refunding - - - (954,000) - - -

Total other financing sources (uses) 236,125 406,368 - 243,262 - - -

Net change in fund balances (282,009)$ 571,382$ 2,446,732$ 1,689,601$ 1,257,316$ 916,480$ (1,322,941)$

Debt service as a percentageof non-capital expenditures 5.96% 7.54% 7.03% 5.97% 4.40% 4.32% 5.11%


Fiscal Year


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

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Total TotalFiscal Year Taxable Direct

Ended Tax Roll Real Personal Assessed Tax September 30, Year Property Property Value Rate

2000 1999 347,027,018$ 33,435,121$ 380,462,139$ 5.93182001 2000 358,821,111 33,091,328 391,912,439 6.33182002 2001 416,109,058 36,966,100 453,075,158 7.33182003 2002 456,039,249 33,224,238 489,263,487 7.33182004 2003 524,749,511 36,240,243 560,989,754 7.33182005 2004 581,589,292 39,498,568 621,087,860 7.33182006 2005 706,265,786 40,506,716 746,772,502 7.33182007 2006 962,493,703 44,406,661 1,006,900,364 7.03852008 2007 1,046,644,553 51,374,007 1,098,018,560 6.1895 2009 2008 961,009,605 48,340,349 1,009,349,954 3.2395

Note: Property in the Town is re-assessed each year. Property is assessed at actual value; therefore, the assessed values are equal to actual value. Tax rates are per $1,000 of assessed value.

Source: Palm Beach County Property Appraiser's Office.

NET ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS

Assessed Values


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Direct Tax TotalFiscal Year Rate - Town Palm Fire/ Special Direct and

Ended Tax Roll General School Beach Rescue Taxing OverlappingSeptember 30, Year Operations District County MSTU (2) Districts Rates

2000 1999 5.9318 9.0430 4.9456 - 2.1856 22.10602001 2000 6.3318 8.9180 4.9362 - 2.2630 22.44902002 2001 7.3318 8.9480 4.9351 - 2.4558 23.67072003 2002 7.3318 8.7790 4.8084 - 2.4883 23.40752004 2003 7.3318 8.5710 4.7910 - 2.5557 23.24952005 2004 7.3318 8.4320 4.7677 - 2.5257 23.05722006 2005 7.3318 8.1060 4.7192 - 2.5042 22.66122007 2006 7.0385 7.8720 4.5160 - 2.2880 21.71452008 2007 6.1895 7.3560 3.9813 - 2.1308 19.65762009 2008 3.2395 7.2510 3.9656 2.9500 2.2569 19.6630

Note 1: All millage rates are based on $1 for every $1,000 of assessed value.Note 2: The sole component of the Town's Direct Tax Rate is for General Operations

Sources: Town of Lantana Finance Department and Palm Beach County Property Appraiser's Office.

the Town of Lantana. Not all overlapping rates apply to all Town of Lantana property owners (i.e. the rates for special taxing districts apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district).(2) FY 2009 was the first year that Palm Beach County separately charged the Fire/Rescue MSTU rate for the Town of Lantana Previously, this charge was included in the Town's Millage Rate.

Tax rate limits

Scope of tax rate limits

Taxes assessed January 1Taxes due March 31Taxes delinquent April 1Discount allowed 4% November; 3% December; 2% January; 1% FebruaryPenalties for delinquency 2.5% after April 1; increase .5% each ten days maximum 5%Tax collector Palm Beach CountyTax collector's commission None

Ten mills operating expense exclusive of debt service per Florida Statute 200.081. (Onemill equals $1 per $1,000 of assessed valuation)

No municipality shall levy ad valorem taxes for real and tangible personal property in excessof ten mills of the assessed value, except for special benefits and debt service on obligationsissued with the approval of those taxpayers subject to ad valorem taxes.

Overlapping (1)


PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS


(1) Overlapping rates are those of local and county governments that apply to property owners within

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Percentage PercentageNet of Total Net of Total

Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value

Palm Beach Club, LLC (Carlisle) 29,000,000$ 1 2.87% 25,133,800$ 1 6.61%Ramco Lantana LLC 14,628,628 2 1.45% 4,850,000 4 1.27%Equity One (Lantana) Inc. 12,951,494 3 1.28% 7,661,968 2 2.01%Costco Wholesale Corp. 10,330,414 4 1.02% 8,327,019 3 2.19%Lan Hill Corp. 7,844,776 5 0.78% 3,701,528 5 0.97%GMC of Lantana Ltd. 7,000,000 6 0.69%Hypoluxo I LP 6,224,889 7 0.62%Lantana Storage Partners LTD 5,918,723 8 0.59% 3,101,740 8M Six Creditvest I Business 5,895,258 9 0.58% 3,200,000 6 0.84%Village at Ocean Walk LLC 5,528,780 10 0.55%RL Lantana Boatyard Ltd. 2,501,313 9 0.66%Advance Business Associates 2,392,569 10 0.63%Monterey Pointe Inv. Inc. 3,219,818 7 0.85%

105,322,962$ 10.43% 64,089,755$ 16.03%

Source: Palm Beach County Property Appraiser's Office.

2000


PRINCIPAL PROPERTY TAXPAYERS

CURRENT YEAR AND NINE YEARS AGO

2009

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Fiscal Year Collected inEnded Net (1) Percent Subsequent Percent

September 30, Tax Levy Amount of Levy Years Amount of Levy

2000 2,252,181$ 2,165,392$ 96.15% 14,311$ 2,179,703$ 96.78%2001 2,667,369 2,553,400 95.73% 8,046 2,561,446 96.03%2002 3,321,856 3,189,992 96.03% 13,522 3,203,514 96.44%2003 3,593,048 3,433,824 95.57% 14,204 3,448,028 95.96%2004 4,120,200 4,399,034 106.77% 5,479 4,404,513 106.90%2005 4,561,607 4,379,491 96.01% 25,173 4,404,664 96.56%2006 5,481,942 5,274,916 96.22% 5,282 5,280,198 96.32%2007 7,087,068 6,839,476 96.51% 27,907 6,867,383 96.90%2008 6,524,893 6,563,085 100.59% 22,920 6,586,005 100.94%2009 3,138,998 3,137,780 99.96% - 3,137,780 99.96%

Note: All property taxes are assessed and collected by Palm Beach County without charge to the Town, and collections are distributed as collected.

Source: Town of Lantana Finance Department and Palm Beach County Tax Collector's Office.

(1) Tax levy, net of allowance for discounts


the Fiscal Yearof the Levy Tax Collections

Total PropertyCollected within

PROPERTY TAX LEVIES AND COLLECTIONS


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Fiscal Year Obligation Total Percent ofEnded Revenue Capital Revenue Under Utility Primary Personal Per

September 30, Bonds Leases Notes Loans Bonds Agreements Loans Government Income (1) Capita (1)

2000 1,343,000$ 15,314$ 5,000,000$ -$ 7,912,142$ 956,834$ -$ 15,227,290$ 35.33% 1,649 2001 1,274,000 177,490 5,000,000 - 7,736,554 817,495 - 15,005,539 34.20% 1,590 2002 1,217,000 214,587 3,500,000 - 7,555,965 670,852 - 13,158,404 29.88% 1,388 2003 1,156,000 133,570 3,384,644 156,000 7,595,376 518,590 24,800 12,968,980 29.44% 1,365 2004 1,092,000 316,997 3,206,450 78,000 11,207,387 355,653 12,400 16,268,887 33.87% 1,708 2005 1,025,000 135,736 3,013,433 - 10,741,185 183,164 - 15,098,518 29.97% 1,577 2006 954,000 158,895 2,818,536 - 10,832,820 - - 14,764,251 26.69% 1,459 2007 867,757 81,044 2,615,997 - 10,284,744 - - 13,849,542 23.42% 1,390 2008 780,468 - 2,405,514 - 9,712,388 - - 12,898,370 N/A 1,309 2009 689,588 - 2,186,778 - 9,115,366 - - 11,991,732 N/A 1,231

Note: Details regarding the Town's outstanding debt can be found in the notes to the financial statements

Source: Town of Lantana Finance Department

(1) See the Schedule of Demographic and Economic Statistics for personal income and population data

N/A - Data is not available


Governmental ActivitiesBusiness-Type

Activities

RATIOS OF OUTSTANDING DEBT BY TYPE


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AmountPercentage Applicable

Applicable to to theNet Debt Town of Town of

Government Unit Outstanding (1) Lantana (2) Lantana

Town of Lantana -$ 100.00% -$

Palm Beach County 270,150,000 0.63% 1,701,945

Palm Beach County School District (3) - 0.63% -

Total 270,150,000$ 1,701,945$

Sources: Assessed value data used to estimate applicable percentages provided by the Palm Beach County Property Appraiser. Debt outstanding data provided by each governmental unit

(1) General Obligation Bonds

(2) Estimated based on 2009 Ratio of Assessed Taxable Values

(3) The Palm Beach County School District has no outstanding General Obligation Bonds. The District has $32,835,000 in outstanding Capital Outlay bonds; however, these bonds are serviced entirely by the State using a portion of the District's share of revenue derived from motor vehicle license taxes and are therefore not considered General Obligation bonds or overlapping debt.

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

SEPTEMBER 30, 2009

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of theTown. This schedule estimates the portion of the outstanding debt of those overlapping governments that isborne by the residents and businesses of the Town of Lantana. This process recognizes that, when consideringthe Town's ability to issue and repay long-term debt, the entire debt burden borne by the residents andbusinesses should be taken into account. However, this does not imply that every taxpayer is a resident, andtherefore responsible for repaying the debt of each overlapping government.


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PublicFiscal Year Services

Ending Tax September 30 Revenue (1) Principal Interest Total Coverage

2000 1,056,959$ 67,000$ 73,779$ 140,779$ 7.51 2001 1,080,998 69,000 70,134 139,134 7.77 2002 1,260,371 57,000 66,758 123,758 10.18 2003 1,299,700 61,000 63,595 124,595 10.43 2004 1,308,074 64,000 60,246 124,246 10.53 2005 1,265,000 67,000 56,736 123,736 10.22 2006 1,442,344 71,000 56,304 127,304 11.33 2007 1,436,034 86,243 35,715 121,958 11.77 2008 1,355,188 87,289 34,668 121,957 11.11 2009 1,376,332 90,880 31,077 121,957 11.29


(1) Sports Complex Bonds are secured by a pledge of and lien of the revenues derived and to be derived from the public services tax

Debt Service Requirements

SPORTS COMPLEX BONDS PLEDGED REVENUE COVERAGE



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Public Local RevenueFiscal Year Services Option Available

Ending Tax Fuel for Debt September 30 Revenue (2) Tax (2) Service Principal (3) Interest (4) Total Coverage

2001 1,080,998$ 239,370$ 1,320,368$ -$ 207,230$ 207,230$ 6.37 2002 1,260,371 246,188 1,506,559 - 135,243 135,243 11.14 2003 1,299,700 256,743 1,556,443 172,723 135,393 308,116 5.05 2004 1,308,074 269,245 1,577,319 191,218 129,383 320,601 4.92 2005 1,265,000 307,668 1,572,668 187,829 109,455 297,284 5.29 2006 1,442,344 291,973 1,734,317 194,897 112,681 307,578 5.64 2007 1,436,034 281,478 1,717,512 202,540 105,038 307,578 5.58 2008 1,355,188 272,568 1,627,756 210,482 97,096 307,578 5.29 2009 1,376,332 259,712 1,636,044 218,736 88,842 307,578 5.32


(1) FY 2001 was the first year of the Streets and Highways Note

(2) The Streets and Highways Debt is secured by a pledge of and a lien on the revenues derived and to be derived from the public services tax and the local option fuel tax

(3) During FY 2002, the Town paid down $1,500,000 of the principal and converted the Note from a variable rate to a fixed rate

(4) Interest only payments were due prior to the Town converting the Note to a fixed rate. Principal and interest payments were due beginning in FY 2003

Debt Service Requirements

STREETS AND HIGHWAYS NOTE PLEDGED REVENUE COVERAGE

LAST TEN FISCAL YEARS (1)


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RevenueFiscal Year Available for Total

Ending Gross Operating Debt Debt Current September 30 Revenue (1) Expenses (2) Coverage Service Coverage

2000 3,184,405$ 2,161,223$ 1,023,182$ 507,840$ 2.01 2001 3,359,389 2,459,558 899,831 615,340 1.46 2002 3,174,160 2,105,627 1,068,533 612,140 1.75 2003 3,207,648 2,148,467 1,059,181 613,540 1.73 2004 3,541,575 2,310,130 1,231,445 1,003,224 1.23 2005 4,490,659 2,770,816 1,719,843 1,088,206 1.58 2006 5,193,750 3,662,812 1,530,938 1,027,767 1.49 2007 5,193,961 3,275,971 1,917,990 1,028,798 1.86 2008 4,737,044 3,349,643 1,387,401 1,036,269 1.34 2009 4,819,178 3,194,599 1,624,579 1,036,023 1.57

Source: The Town of Lantana Finance Department

(1) Includes interest income, capital contributions and gain on sale of equipment

(2) Excludes depreciation and amortization expense

(3) The 1998 and the 2003 Water and Sewer Bonds are secured by a pledge on the revenues derived from the operation of the water and sewer system and, accordingly, are recorded in the enterprise fund


1998 AND 2003 WATER AND SEWER BONDS PLEDGED REVENUE COVERAGE


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Palm Beach Palm BeachCounty Town County

Town Per Capita School UnemploymentYear Population (1) Income (2) Enrollment (3) Rate (4)

2000 9,232 43,101 N/A 2.8%2001 9,437 43,876 N/A 2.5%2002 9,477 44,041 N/A 3.3%2003 9,501 44,050 N/A 3.2%2004 9,526 48,034 N/A 3.1%2005 9,574 50,371 N/A 2.2%2006 10,121 55,311 1,953 3.7%2007 9,961 59,147 1,892 3.2%2008 9,850 N/A 1,894 7.4%2009 9,743 N/A 1,814 11.7%

Sources:

(1) University of Florida, Bureau of Economic and Business Research

(2) US DOC Bureau of Economic Development

(3) Palm Beach County School Board Budget Office

(4) U.S. Department of Labor, Bureau of Labor Statistics and Palm Beach County Business Development Board

N/A - Statistical information not available

NOTE: Where indicated, Palm Beach County data was used as a more relevant source.


DEMOGRAPHIC AND ECONOMIC STATISTICS


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Percentage of Palm Beach Percentage ofTotal County Total County

Employer Employees Rank Employment Employees Rank Employment

School Board of Palm Beach County 21,718 1 3.93% 16,800 1 3.23%Palm Beach County 11,319 2 2.05% 9,000 2 1.73%Tenet Healthcare Corporation 4,500 3 0.81%Florida Power & Light 3,632 4 0.66% 2,300 7 0.44%HCA (Hospital Corporation of America) 3,395 5 0.61%Wackenhut Corporation 3,000 6 0.54%Florida Atlantic University 2,838 7 0.51%Veterans Health Administration 2,207 8 0.40%Office Depot (Headquarters) 2,100 9 0.38%Boca Raton Community Hospital 2,100 10 0.38% 1,600 10 0.31%State of Florida 8,600 3 1.65%Federal Government 5,200 4 1.00%Columbia PB Healthcare System, Inc. 4,000 5 0.77%Intracoastal Health Systems, Inc. 3,200 6 0.62%Motorola, Inc. 2,300 8 0.44%Boca Raton Resort & Club ____ 1,850 9 0.36%

56,809 10.27% 53,000 10.20%

(1) Source: Business Development Board of Palm Beach County. Data is for Palm Beach County, Florida. Employment information for the Town is not available.

Estimated Employer Employees Rank

Publix 300 1A G Holley 173 2Atlantis Foods 150 3Lantana Middle School 130 4Lantana Elementary School 110 5Town of Lantana 100 6

963

(2) Source: The Town of Lantana Development Services

2009 (2)

SEPTEMBER 30, 2009


PRINCIPAL EMPLOYERS - PALM BEACH COUNTY (1)

CURRENT YEAR AND NINE YEARS AGO

2009 2000

PRINCIPAL EMPLOYERS - TOWN OF LANTANA

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2006 2007 2008 2009Number of Employees:

General Government Administration 3 3 3 3 Finance 6 7 7 7 Information Systems 2 2 2 2 Public Safety Police Personnel and Officers 49 44 43 38 Marine Safety 5 5 5 5 Development Services 9 8 8 7 Culture and Recreation Parks and Recreation 4 3 3 - Library 5 2 2 2 General Maintenance - 11 10 - Physical Environment Management 4 - 3 3 Sanitation 7 11 11 10 Water/Sewer 10 9 9 9 General Maintenance 11 Vehicle Maintenance - 2 2 2 Equipment Operators 4 - - - Operations - - - 12

Total Number of Employees 119 107 108 100


Note: Full-time equivalent information for years prior to 2006 is not available.

Note: The following changes between functions were made in FY 2007. General maintenance was moved from Physical Environment to Culture and Recreation. Vehicle Maintenance was separated into its own section. Equipment operators have been included with Sanitation.

During fiscal year 2009. Parks and Recreation and General Maintenance under Culture and Recreation became a part of the Operations function under Physical Environment.


FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION

SEPTEMBER 30, 2009

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Function/Program 2006 2007 2008 2009

General government:Town Clerk:

Council agendas Prepared 25 21 23 27Ordinances passed by Council 10 14 10 7Resolutions passed by Council 15 13 10 19Records destroyed cubic feet 75 56.8 60 24Public record requests 15 11 10 27Employee service awards 12 12 13 12

Finance:Accounts payable checks issued 2,800 2,295 2,550 2,080New fixed asset items tagged 35 35 66 61Beach decals processed 1,200 729 1,200 628 Information Systems:Installation of new software 50 50 50 60Installation of new hardware 25 25 25 50Upgrades to current software 200 150 150 100

Public safety: Police:Police personnel and officers 49 44 43 38Survey letters sent/returned 300/75 300/75 300/65 300/59CARE visits 550 192 200 130House checks 600 104 100 102Selective Traffic Enforcement Programs (STEP) 600 908 400 459Traffic enforcement operations 12 12 12 12 Development Services:Building permits issued 1,300 902 762 715Code citations cases opened 130 2,317 138 790Business tax receipts issued 1,400 1,309 1,515 1,350 Marine Safety:Beach attendance 198,000 190,000 204,200 183,579Ocean rescues and assists 25 17 25 10

Culture and recreation: Parks and Recreation:Youth soccer registrants 425 425 200 0 Library:New borrowers’ cards issued 900 1,372 1,548 1,081Books borrowed 17,000 17,313 17,500 18,935Hours of public internet use 14,500 11,671 17,466 13,095Users N/A 15,392 23,572 17,267Attendance at Library programs 337 337 279 361Programs 41 41 41 251

Physical Environment Department of Public Works:Vehicles maintained 80 83 80 80Pieces of equipment maintained 75 85 90 95Sidewalks repaired/replaced 20,000 sq. feet 11,155 sq. feet 15,000 sq ft 406 sq ftSolid waste and recycled material collected 8,300 tons 7,087 tons 7,500 tons 5,900 tonsTreated, pumped and dispensed water 810 million gallons 822 million gallons 825 million gallons 580.5 million gallons

Source: Town of Lantana - Various Departments

Note: Operating indicators by function/program for years prior to 2006 are not available.

OPERATING INDICATORS BY FUNCTION/PROGRAM

SEPTEMBER 30, 2009


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Function/Program 2006 2007 2008 2009

General government: Number of general government buildings 5 5 5 5

Public safety: Police 1 1 1 1 Marine Safety 1 1 1 1

Physical Environment Transportation: Sidewalks repaired/replaced (sq. ft.) 20,000 11,155 15,000 406

Streets (miles) 30 30 30 30

Culture and recreation:Public Ground (acres) 31 31 31 31Parks 6 6 6 6Soccer fields 1 1 1 1Baseball/softball fields 6 6 6 6Tennis courts 4 4 4 4Playgrounds 4 4 4 4Basketball courts 2 2 2 2

Public Works/Utilities:Vehicles maintained 80 83 80 80Equipment maintained 75 85 90 95Lift stations maintained 18 18 18 18Fire Hydrants 374 374 374 374

Source: Town of Lantana - Various Town Departments

Note: Capital asset information for years prior to 2006 is not available.

SEPTEMBER 30, 2009

CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM


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MISCELLANEOUS STATISTICS Historical Sketch: The Town of Lantana is a coastal community in Palm Beach County, which still retains the charm of its origins as an old Florida fishing village. Although it is one of the smaller communities of Palm Beach County, it is noted as one of the oldest. The first settlers came after Congress passed the Armed Occupation Act in 1842 at the end of the Seminole Wars. One of the pioneer settlers, The Lyman family, is distinguished as the founders of the town. M. B. Lyman brought his family to Lantana in 1888 and started several enterprises. He established a store, Indian Trading Post, and post office in 1889. As postmaster, Mr. Lyman named the post office Lantana Point for the wild Lantana plant, which grew in abundance in the area. The “Point” was later dropped. One of the Lyman businesses was the Lantana Fish Company. One hundred thousand-pound catches of fish were made. In the early 1900’s the gathering and marketing of oysters became the leading industry. The Town of Lantana was incorporated in 1921, with 22 residents voting in the first election. At the time of incorporation, the area of Lantana was one square mile, with a population of 100 residents. Today the year round population is 9,743 with a seasonal population of approximately 13,500. Form of Government: Town Council – Manager with a Mayor and four Council members elected for three year overlapping terms. The Town Manager is appointed by the Town Council. Location and Area: The Town of Lantana encompasses an area of 2.79 square miles and is located about five miles south of the City of West Palm Beach. The Town’s corporate limits extend just west of I-95 and eastward to the Atlantic Ocean. Four other municipalities and one unincorporated area of Palm Beach County border the Town. Palm Beach County is located on the southeast coast of Florida and extends westward to Lake Okeechobee with a total 2,230 square miles, including 46 miles of frontage on the Atlantic Ocean and about 25 miles of frontage on Lake Okeechobee. Police Protection: The Department consists of thirty sworn officers and eight civilian full-time employees. Fire Protection: Fire/rescue services are provided to the residents of the Town of Lantana by Palm Beach County through a seven-year interlocal agreement. Recreation Facilities: The Town of Lantana’s recreational facilities include an eight-acre municipal beach with 745 feet of ocean frontage, open picnic areas, an open-air restaurant and sundry store, showers, rest rooms, lifeguard station and a playground area. The Town has four passive parks and one preserve, which encompass eight acres and provide shaded picnic areas with playground equipment and rest rooms. In addition, the Town maintains a 22-acre sports complex, which consists of six baseball fields, one soccer field, two basketball courts, and a playground. The Town has a recreation center with four tennis courts (two lighted), four shuffleboard courts (lighted), and a barbecue pavilion with a picnic area. There is one additional tennis court located at one of the Town’s parks. The Town has a two-acre boat launching facility capable of a four-boat capacity with a parking area. Marine Safety: Three Marine Safety Officers are Auxiliary Police Officers. All members of this department are Ocean Lifeguard EMT’s that provide ocean lifeguard duties at the Town’s Municipal Beach. Building Activity: The Town of Lantana is approximately 98% developed. During the fiscal year 2009, the Building Department issued 715 permits with fees of approximately $113,000 for total construction of $4.86 million. In addition, the Department issued 137 new business tax receipts and 1,213 business tax receipt renewals for total revenue of $202,307.


MISCELLANEOUS STATISTICS (Continued)

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Water and Wastewater System: As of September 30, 2009, the Town provided water service to over 3,350 customers. For the 2009 fiscal year, the number of gallons of finished water that passed through the master meter was 580.5 million.

Company Type of Coverage Covered

Hartford Accidental death and dismemberment Law enforcement Statutoryofficers and clerical staff

Preferred Government Employee dishonesty, theft, Town employees 250,000$ Insurance Trust computer fraud and property

Preferred Government Real and personal property Town property 13,798,478$ Insurance Trust and equipment

Preferred Government Employment related practices liability Town employees 1,000,000$ Insurance Trust

Preferred Government General and automobile liability Town employees 1,000,000$ Insurance Trust and vehicles $2M Aggregate

Preferred Government Workers compensation liability Town 1,000,000$ Insurance Trust

Commerce & Industry Above ground petroleum storage tanks Town property 1,000,000$ $2M Aggregate

SEPTEMBER 30, 2009

SCHEDULE OF INSURANCE IN FORCE


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COMPLIANCE SECTION

comprehensive annual financial report … annual report consists of a series of financial...

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