Northern implements and manages:

• surface water management systems
• environmental preserves
• storm water pump stations
• roadways
• irrigation quality water distribution and collection systems
• parks

Northern may undertake projects on a District-wide basis, or the Board of Supervisors of the District (the “Board”) may designate an area as a “unit of development” within which specific projects will be undertaken.

Northern Palm Beach County Improvement District (“Northern”) is an independent special district created pursuant to Chapter 59-994, Florida Statues, filed with the Florida Secretary of State’s Office on June 18, 1959. Prior to June 17, 1995, it was known as “Northern Palm Beach County Water Control District,” but Northern’s name was changed by the Legislature (see Chapter 95-489, Laws of Florida) to more accurately reflect its purposes. Northern encompasses approximately 128 square miles of land in the northeastern portion of Palm Beach County.

As a special district, Northern has only those powers specifically delegated to it by the Legislature, or necessarily implied from powers specifically delegated to it. There have been subsequent periodic changes to it’s legislation, but overall, Northern was established for the purpose of reclaiming the lands within its boundaries for water control and water supply purposes, and to protect the land from the effects of water by means of the construction and maintenance of canals, ditches, dikes, pumping plants and other works and improvements. In 1987, Northern was further authorized to construct and operate water and sewer facilities, roads, parks and parkways. All service provided is subject to the local government development requirements for each location.

Northern is located in the northeast portion of Palm Beach County. Our boundaries extend south to the Lake Worth Drainage District (approximately to Southern Boulevard), east to Alternate A1A, north to the Palm Beach County line, and west to the L-8 Canal. This service area does not include any municipalities or water control districts that were in existence at the time of Northern’s creation in 1959. (Chapter 59-994, F.S.)

None of the above. Northern Palm Beach County Improvement District is an independent special district of the state of Florida. It was created by the Florida Legislature in 1959. (Chapter 59-994, F.S.)

Northern’s enabling legislation provides that it may undertake District-wide projects, and, in addition, the owners of a majority of the acreage within a particular portion of Northern, may petition the Board of Supervisors to designate that portion of Northern as a Unit of Development for the purposes of constructing and maintaining improvements in accordance with a plan of improvements. After formation of the unit, Northern’s District Engineer must prepare a report on the Plan of Improvements (“the Plan”) detailing the amount of benefits and damages that will accrue to the land from the construction of the Plan. The Board, after a public hearing to receive any objections, may approve the report. The approval and confirmation of Northern’s District Engineer’s report by the Board establishes the amount and apportionment of assessments. Financing, generally in the form of issuance of Bonds, may then be obtained for the purpose of constructing the Plan. Repayment of indebtedness for that purpose will then be secured by assessments on the lands in that unit, and will not be secured by assessments owing on any other district lands. Amendments to the Plan generally are made in the same manner as the adoption of the original Plan.

Northern has 23 full-time employees and 2 part time interns, including Executive Director C. Danvers Beatty, who was appointed Executive Director upon O’Neal Bardin, Jr.’s retirement in November 2021.  Mr. Bardin held the position since February 2003, when he succeeded Peter L. Pimentel in office. Mr. Pimentel retired after having served as Northern’s Executive Director since May 1, 1979. Mr. Beatty has been employed by Northern since 2005, and served as Deputy Director from that time until his appointment as Executive Director.

Northern consists of two basic divisions – Administration & Finance and Operations & Engineering. There are seven Staff within Administration & Finance, and there are eighteen Staff within Operations & Engineering. These Staff manage numerous contracts with Consultants, Project and Consulting Engineers, and Annual Contractors to perform the work and services for each Unit throughout the 128-square-mile area.

The law firm of Caldwell Pacetti Edwards Schoech & Viator LLP, West Palm Beach, Florida, is General Counsel for Northern, having served in that capacity since Northern’s creation.

Kim Leser is Northern’s District Engineer and is a Northern Staff Member. Northern’s enabling legislation provides that Northern shall retain the services of a District Engineer who shall have control of the engineering work within Northern and shall, among other things, file with certain Florida agencies a report outlining water control plans for Northern and costs thereof. Prior to Ms. Leser’s appointment,  the firm Arcadis served as District Engineer. Prior to Arcadis, was the firm of SFRN, Inc., and prior to SFRN, was the firm of Mock Roos & Associates, Inc.

If you believe the owner or address information is incorrect on your tax bill and want to request a change, please contact the Palm Beach County Property Appraiser’s office at 561-355-2866.

359 Hiatt Drive Palm Beach Gardens, FL 33418 Tel: 561-624-7830 Fax: 561-624-7839

Board Meeting Schedule

The governing body of Northern is the Board of Supervisors (“the Board”) which is comprised of five elected members. The Board is responsible for legislative and fiscal control of Northern. Originally, all five Board Members were elected in the Annual Landowners Election. In 2003, the Board of Supervisors embarked on a program of improving communication and educating our residents. A desire to be proactive about residents’ and constituents’ growing concerns regarding the election process utilized by Northern, as well as other issues facing them, led the Board to form the Mission Review Committee. It’s purpose was to review the voting procedure of one acre, one vote versus other possible alternatives, adopt a mission statement, and to clarify authority over Board qualification issues. The culmination of the Committee’s work resulted in Chapter 2005-302, F.S., which provides that two of the five Board Seats are elected in the General Election beginning in November 2006. In 2006, Marilyn Lew-Jacobs became the first popularly elected Board Member. If there is a vacancy on the Board, the remaining Supervisors fill such vacancy until the next annual election.

In May 2010, Governor Crist signed House Bill No. 759, which changed the manner in which Board Members are elected the District’s Board of Supervisors. Two more seats, bringing the total of four out of five seats, are filled by popular vote in the General Election. The remaining seat will continue to be filled by landowner election. Beginning in 2012, Seats No. 4 and 5 were elected by popular vote in the November General Election. Also at that time, the requirements to qualify for those seats changed so that members elected to those seats must be residents of the District, must own, or have a beneficial interest in an entity that owns real property within the District, and must be electors of the District. Beginning in 2014, Seats No. 2 and 3 will have similar qualifying requirements.

Another major change within the House Bill is the landowner election qualifications. At this time, votes are cast on a “one acre (or any portion thereof) one vote” basis for Seats 1, 3 and 4 by any landowner within the District. Beginning in 2010, landowners of real property within the District’s boundaries with the exception of landowners who own land not currently subject to the District’s levy of assessments or who have not paid those assessments for the previous year are qualified to vote in the landowner seat election process.

The Board meets regularly on the second and fourth Wednesdays of each month for the purpose of conducting the business of Northern.

7/14/59
G.H. Schultz, President
E.F. Froelich
Claude D. Reese
A.J. Bohny
Louis B. Bills, Treasurer

6/15/62
Louis Bills, President
William L. Kerslake
G.H. Schultz
E.F. Froelich
Claude Reese, Treasurer

10/05/62
Louis Bills, President
J.M. Boyd
William L. Kerslake
E.F. Froelich
Claude Reese, Treasurer

6/23/66
Louis Bills, President
Philip D. Lewis
William L. Kerslake
E.F. Froelich
Claude Reese, Treasurer

7/22/66
Philip D. Lewis, President
Louis Bills
William L. Kerslake
E.F. Froelich
Claude Reese, Treasurer

12/11/70
William L. Kerslake, President
Donald C. Walker
Frank J. Griffith
Louis Bills
E.F. Froelich

12/27/72
William L. Kerslake, President
Arthur J. Poisson
Donald C. Walker
Louis Bills
E.F. Froelich

6/20/73
Donald Walker, President
Louis Bills, Treasurer
William L. Kerslake
Arthur J. Poisson
E.F. Froelich

7/15/74
Donald Walker, President
William L. Kerslake
Arthur J. Poisson
E.F. Froelich
Vacant

3/13/75
Donald Walker, President
William L. Kerslake
Arthur J. Poisson
E.F. Froelich
Clair G. Andersen

6/26/75
Donald Walker, President
William L. Kerslake, Treasurer
Arthur J. Poisson
E.F. Froelich
Clair G. Andersen

7/08/76
Donald Walker, President
William L. Kerslake, Treasurer
Arthur J. Poisson
Clair G. Andersen
Vacant

10/20/76
Donald Walker, President
William L. Kerslake, Treasurer
Arthur J. Poisson
Clair G. Andersen
Richard G. Orman

12/17/86
William L. Kerslake, President
Arthur J. Poisson
Clair G. Andersen
Richard G. Orman
Vacant

1/28/87
William L. Kerslake, President
Arthur J. Poisson
Clair G. Andersen
Richard G. Orman
Robert D. Norris

6/28/93
William L. Kerslake, President
Arthur J. Poisson
Clair G. Andersen
Robert D. Norris
Raymond W. Royce

8/12/95
William L. Kerslake, President
Clair G. Andersen
Robert D. Norris
Raymond W. Royce
Vacant

9/27/95
William L. Kerslake, President
Clair G. Andersen
Robert D. Norris
Raymond W. Royce
A. Sally (Arbid) Hamadeh

6/25/97
William L. Kerslake, President
Robert D. Norris
Raymond W. Royce
A. Sally (Arbid) Hamadeh
Tesula N. Stewart

6/24/98
Raymond D. Royce, President
Robert D. Norris
A. Sally (Arbid) Hamadeh
Tesula N. Stewart
K. Daniel Shalloway

3/29/99
Robert D. Norris, President
Tesula N. Stewart
A. Sally (Arbid) Hamadeh
K. Daniel Shalloway
Vacant

4/14/99
Robert D. Norris, President
Tesula N. Stewart
A. Sally (Arbid) Hamadeh
K. Daniel Shalloway
Vacant

4/28/99
Robert D. Norris, President
Tesula N. Stewart
A. Sally (Arbid) Hamadeh
K. Daniel Shalloway
Pamela M. Rauch

6/23/99
Tesula N. Stewart, President
A. Sally (Arbid) Hamadeh
K. Daniel Shalloway
Pamela M. Rauch
Jorge Quintero

6/27/01
A. Sally (Arbid) Hamadeh, President
Tesula N. Stewart
Pamela M. Rauch
Jorge Quintero
Hugo P. Unruh

6/27/02
Pamela M. Rauch, President
Hugo Unruh, Vice President
Tesula N. Stewart
A. Sally (Arbid) Hamadeh
Hal R. Valeché

6/25/03
Hugo Unruh, President
Hal R. Valeché, Vice President
Tesula N. Stewart
Pamela N. Rauch
A. Sally (Arbid) Hamadeh

7/30/03
Hugo Unruh, President
Hal R. Valeché, Vice President
Tesula N. Stewart
Pamela N. Rauch
Vacant

9/24/03
Hugo Unruh, President
Hal R. Valeché, Vice President
Tesula N. Stewart
Pamela N. Rauch
Ronald M. Ash

7/08/04

Hugo Unruh, President
Tesula N. Stewart
Pamela N. Rauch
Ronald M. Ash
Vacant

10/27/04
Hugo Unruh, President
Tesula N. Stewart
Pamela N. Rauch
Ronald M. Ash, P.E.
Marilyn Lew-Jacobs

6/22/05
Ronald M. Ash, P.E., President
Tesula N. Stewart, Vice President
Pamela N. Rauch
Hugo Unruh
Marilyn Lew-Jacobs

11/16/05
Ronald M. Ash, P.E., President
Pamela N. Rauch, Vice President
Hugo Unruh
Marilyn Lew-Jacobs
Deborah A. Diaz

11/06
Pamela N. Rauch, President
Marilyn Lew-Jacobs, Vice President (Elected General Election 11/07/06)
Hugo Unruh
Ronald M. Ash, P.E.
Deborah A. Diaz

11/14/07
Marilyn Lew-Jacobs, President
Deborah A. Diaz, Vice President
Pamela N. Rauch
Hugo Unruh
Ronald M. Ash, P.E.

02/28/08
Marilyn Lew-Jacobs, President
Deborah A. Diaz, Vice President
Hugo Unruh
Ronald M. Ash, P.E.
Leonard G. Rubin

11/19/08
Deborah A. Diaz, President
Ronald M. Ash, P.E., Vice President
Marilyn Lew-Jacobs
Matthew J. Boykin (Elected General Election 11/4/08)
Adrian M. Salee

11/17/10
Ronald M. Ash, P.E., President
Adrian M. Salee, Vice President
Matthew J. Boykin
Michael O’Rourke (Elected General Election 11/2/10)
L. Marc Cohn

10/26/11
Ronald M. Ash, P.E., President
Adrian M. Salee, Vice President
Matthew J. Boykin
Garo Artinian (Appointed to fill vacancy)
L. Marc Cohn

11/14/2012
Adrian M. Salee
Matthew J. Boykin
L. Marc Cohn
Garo Artinian
John P. Cohen

3/22/2017

Matthew J. Boykin
L. Marc Cohn
Adrian M. Salee
John P. Cohen
Gregory Block (Appointed to fill vacancy)

8/26/20

Matthew J. Boykin
L. Marc Cohn
Adrian M. Salee
Gregory Block
Ellen T. Baker (Appointed to fill vacancy)

11/16/22

Matthew J. Boykin
L. Marc Cohn
Ellen T. Baker
Gregory Block
Brian LaMotte

Northern Palm Beach County Improvement District follows the Code of Ethics for Public Officers and Employees. The Code of Ethics for Public Officers and Employees, adopted by the Legislature as Part III of Chapter 112, Florida Statutes , contains standards of ethics conduct and disclosures applicable to public officers, employees, candidates, lobbyists, and others in Florida State and local government, with the exception of Judges. (The ethical standards for Judges of Florida’s judicial branch are contained in the Code of Judicial Conduct, adopted by the Florida Supreme Court.)

For more information see the Florida Commission on Ethics website at: www.ethics.state.fl.us  (See page entitled “Ethics Laws”).

Northern will be the most respected special district within the State of Florida by presenting a transparent working relationship to the community utilizing progressive science and technology. We are committed to an atmosphere in which employees can fully utilize their potential.

Our Core Values:

Integrity
Knowledgeable
Accountability
Competence
Discipline
Loyalty to the Mission

The Board of Supervisors developed the following Mission Statement:

Northern’s mission is to improve the quality of life through excellent public service in the areas of flood protection, land stewardship and infrastructure development.

Northern Palm Beach County Improvement District is funded by special assessments collected through Palm Beach County’s Tax Collector’s Office as allowed by Florida law. Each acre or part thereof is assessed based on the services provided to the property. Northern is comprised of multiple “Units of Development” which have varying levels of service and assessments. Assessments (non ad valorem) require developed and undeveloped acres to be assessed by Northern at the same level. These assessments are not ad valorem taxes or millage taxes that vary depending on the appraised value of the property.

Assessments are levied on November 1 of each year, or as soon thereafter as the ad valorem tax roll is certified by the Palm Beach County Property Appraiser and delivered to the Palm Beach County Tax Collector. All unpaid assessments levied November 1 become delinquent April 1 of the following year. Discounts are allowed for early payment at a maximum rate of 4%. Assessment revenues are recognized when they become available. Delinquent assessments are considered fully collectible and therefore no allowance for uncollectible assessments is provided.

The Non-Ad Valorem assessment is an assessment or fee which is levied on certain properties for the purpose of defraying all or part of the cost of a specific capital improvement or service. This specific capital improvement or service must be deemed to benefit the property being assessed. Sometimes referred to as a Special Assessment, the property value is not taken into consideration when this assessment is calculated.

Each year, Northern levies Non-Ad Valorem assessments on all taxable real property within each of its Units of Development. A Unit of Development is simply a geographical area established by Northern’s Board of Supervisors within which Northern provides construction, operation, and/or maintenance of public infrastructure. Northern levies Non-Ad Valorem maintenance assessments for the annual operation and maintenance of its facilities in each Unit of Development. These facilities include roads, lakes, canals, storm water pumping stations, and related appurtenances. In some cases, Northern levies Non-Ad Valorem Debt Service assessments to make principal and interest installments on Bonds it has issued in order to fund the construction of public infrastructure within that Unit of Development. Your assessment pays for the operation, maintenance, and debt service (if applicable) for only your Unit of Development.

Northern’s Maintenance and Debt Service assessments appear in the Non-Ad Valorem section on the property tax bill which is issued by the Tax Collector of Palm Beach County on or about November 1 of each year. Northern’s Maintenance and Debt Service assessments are collected by the Tax Collector of Palm Beach County together with all other Non-Ad Valorem assessments and Ad Valorem taxes. You are entitled to a 4% discount on Northern’s Non-Ad Valorem assessments, other Non-Ad Valorem assessments and your Ad Valorem taxes if you pay your property tax bill in November.

Pursuant to section 298.341, Florida Statutes (2006), all water control district non-ad valorem assessments constitute a lien on the assessed real property from January 1st of each year until paid and are enforceable in the same manner as county taxes.  (This statute was amended, effective 6-15-05, to provide that the the lien of the assessments starts on Jan. 1st of each year.  See HB 1389, Chapter 2005-238, eff. 6-15-05)  Therefore, Northern’s non-ad valorem assessments listed on the county tax bills vest on January 1st of each year and cover the same time period as ad valorem taxes which is on a calendar year basis.

Once it is determined that the Northern Board will proceed with a proposed plan, the District Engineer is required to prepare a final version of the plan and a report called the “Engineer’s Report.” The report determines the amount of benefits and the amount of damages that will accrue to the land upon implementation. The report also estimates the cost of the proposed plan and assesses the benefit to the land to be derived from implementation of the plan.

After the Engineer’s Report and plan have been approved by the Board, Northern is authorized to levy special assessments upon lands to which benefits have been assessed. These special assessments may be used to pay the cost of implementation of the plan or may be used to pay debt service on bonds issued to raise funds for such purpose.

In addition to special assessments levied to pay debt service on bonds, the District may levy annual assessments to maintain improvements described in a plan.

Under the Act, Northern may undertake District-wide projects and, in addition, the Act provides that the owners of a majority of the acreage within a particular portion of Northern may petition the Board to designate that portion of Northern as a unit of development wherein improvements will be accomplished. Northern has 48 active units of development as of August 2024.

Northern may impose special assessments upon land benefited by projects of Northern, and Northern may issue bonds payable from such assessments. If bonds are issued to finance improvements within a unit of development, only the lands within that particular unit are subject to the levy and collection of special assessments for the payment of principal and interest on the bonds issued for that unit of development. Units of development may overlap; that is, the same land may be included in more than one unit of development. However, each unit of development is a separate component of Northern for the implementation and financing of District projects.

Prior to construction of any improvements, Northern’s Engineer must prepare, and the Board must approve, a water management plan detailing such improvements. Historically, upon approval of the water management plan, the Board was required to petition the circuit court to appoint three commissioners to assess the benefits and damages, if any, accruing to each parcel of land within the unit of development that would result from the implementation of the water management plan. The assessment of benefits was not an appraisal and was undertaken in part for the purpose of determining the maximum principal amount of bonds that could be issued to finance the implementation of the water management plan and the maximum amount of special assessments that may be imposed for the payment of such bonds. Ultimately, a hearing was held and if it was shown that the estimated cost of construction of improvements described in the water management plan was less than the benefits assessed by the commissioner’s report, the court was required to approve and confirm the commissioner’s report.

Effective May I, 1997, however, the Florida Legislature amended the Act, and the procedures relative to the adoption of a water management plan described above are no longer applicable. In lieu thereof, Northern’s Engineer is now required to prepare a report setting forth the amount of benefits and damages that will accrue to the land as a result of putting into effect a proposed water management plan. Notice is given to affected landowners and there is an opportunity to be heard, but ultimately, the Board may levy assessments based upon benefits and damages determined by Northern’s Engineer.

The maximum principal amount of bonds that may be issued in respect to a project cannot exceed 90% of the benefits assessed against the lands in respect to such project. Northern may levy special assessments in an amount equal to 100% of the assessed benefits for the purpose of paying the principal of the bonds. There is no limit on the amount of special assessments that may be levied for the purpose of paying interest on such bonds.

Northern is responsible for the construction of all works to be undertaken pursuant to any water management plan, and for the maintenance of such works except in instances where improvements are conveyed to other governmental entities after completion. In addition to special assessments imposed to finance the completion of the improvements described in a water management plan, Northern levies annual installments of maintenance taxes on the lands in each unit of development in proportion to the benefits assessed to each parcel therein to pay for the ongoing maintenance of District improvements and administrative costs. There is no limit on the amount of such maintenance taxes.

Northern is obligated to complete a water management plan once adopted, but Northern is also authorized to amend an adopted water management plan. There are several alternative methods for amending a water management plan, but in no event may an amendment have the effect of reducing the amount of Drainage Taxes that could be levied with respect to the Bonds.

Each year, Northern prepares a budget for the upcoming fiscal year (October 1 to September 30). The preliminary budget is proposed by the Staff and presented to property owners, homeowners, property managers, residents, and Northern’s Board at public meetings. The property owners have the opportunity during these meetings to ask questions about the proposed budget and to make requests for budget modifications. The final decisions regarding the budget are made by the Board of Supervisors. The Board carefully considers the public comments/requests when approving the final budget. When adopted, the budget becomes the official financial plan of Northern’s departments. Consequently, this makes preparation of the budget one of the most important duties performed each year.

The information is designed to provide staff members, elected officials and residents with an overview of the budget process and the basic tools necessary to create budgetary estimates, if appropriate. This document can be used as a road map for seeing how Northern creates its annual financial plan.

The preparation of Northern’s annual financial plan is a large task involving many people. In order to coordinate its creation, the Budget Manager prepares a budget calendar. The calendar establishes the key dates to be met during the budget’s creation and indicates which departments or individuals are responsible for preparing items for the budget. The calendar chronicles the budget process from the initial gathering stages through the budget’s approval.

Date / Activity

January each year- Distribute Budget Worksheet Packages and instructions to District Staff. 

February each year- Budget Packages due to Budget Manager.

March – April each year- Review Draft Budget, Assessment Rates, Cost Allocation Analysis, and Common Area Acreage Analysis with Executive Director, Deputy Director, Finance Director, and Consultants.

May each year- Presentation of Draft Budget to Budget and Banking Review Committee by Executive Director.

April  – June each year- Landowner/POA/HOA meetings scheduled to Review Draft Budget and Assessment Rates.

May each year- Presentation of Draft Budget to Board of Supervisors by Executive Director. 

June each year- First Release by Property Appraiser of 2015 Tax Roll data for NAV Assessment Roll.

June each year- Analysis of changes in NAV Assessment Roll.

June each year- Presentation of TRIM Budget and Assessments Rates for approval by Board of Supervisors.

July each year- Deadline for submittal of TRIM Budget Assessments to Palm Beach County Property Appraiser and ISS.

July each year- Deadline for verification of the Assessment Roll for TRIM notices, and mailing of Chapter 197 notices for new assessments.

August each year- Public Hearing and Board of Supervisors Meeting for Final Certification of Assessment Roll and Budget.

September each year- Deadline for Certification of Final NAV Tax Roll to the Tax Collector.

October each year- Fiscal Year Approved Budget is implemented.

Northern’s financial planning process begins in January, and a final balanced financial plan must be approved and assessment rates certified by around September 10 each year.

The Department Directors present departmental budgets to the Budget Manager in a specified format with their requests for funding, including explanations and justification for their requests. When the budget detail is available, conferences are scheduled between the Budget Manager, each Department Director, the Deputy Director and the Executive Director to review the department’s specific detail.

During these meetings, department directors are given the opportunity to justify their requests. Each request is examined to determine if it will be included in the budget during the upcoming year or cut from the funding process. This is accomplished depending on the merit and justification of the requests and availability of funding.

After the Budget Manager reviews and researches the departmental requests and revenue projections, a balanced financial plan is presented to the Executive Director. Once the Executive Director accepts the recommendations, the financial plan is presented to the Budget and Banking Review Committee for detailed review and discussion. This committee then makes a recommendation to the Board.

The financial plan is adopted on a basis consistent with generally accepted accounting principles (GAAP). Line item accounts (salaries, FICA, materials, etc.) within each department are monitored by the Budget and Tax Roll Manager, the Director of Finance and Administration, the Director of Operations and the District Engineer so that departments do not have unauthorized excess expenditures.

Northern has a tradition of sound financial management as evidenced by years of unmodified audit opinions. It is the policy of Administration and the Departments to continue this sound financial management to ensure fiscal strength through all economic trends. As has been learned most recently, market factors, global economic conditions, hurricanes and disasters, lifestyle changes, actions by regulatory agencies, and executive, legislative and judicial decisions made by other governmental jurisdictions, all have a direct impact on Northern.

The following financial goals have been reviewed as part of the financial planning process and reaffirmed as the basis for developing this budget.

Budgeting

A comprehensive annual financial plan will be prepared for all funds expended by Northern. Inclusion of all funds in the financial planning process enables the Board, the Executive Director and the public to consider all financial aspects of Northern’s operations when preparing, modifying, and monitoring the plan, rather than deal with Northern’s finances on a “piecemeal” basis.

Northern’s Financial Plan will be prepared in such a manner as to facilitate its understanding by citizens and elected officials. The Board will hold workshops as well as the required public hearings, which are open to the public in order to communicate effectively District finance issues to all who attend the meetings.

Financial priority will be given to the basic District services which provide the maximum level of services to the most citizens, in the most cost-effective manner, with consideration given to all costs, including economic, fiscal and social.

Northern will maintain its physical assets at a level adequate to protect Northern’s capital investment, and minimize future maintenance and replacement costs from current revenues where possible.

Debt Administration

Northern will confine long-term borrowing to capital improvements that cannot be financed from current revenues or reserves.

Northern will publish and distribute an official statement for each bond issued. Northern will maintain good communications with bond rating agencies about its financial condition. Northern will follow a policy of full disclosure on every financial report and bond prospectus.

Northern will not issue notes to finance operating deficits.

Northern will analyze short-term borrowing for project requests that total less than $1,000,000 in principal. Northern will evaluate the cost-effectiveness of issuing Bonds when projects exceed $1,000,000 in principal.

Reserves

Northern will maintain reserves to provide a sufficient cash flow for financial needs at all times and to offset significant economic downturns.

Northern will maintain sufficient cash reserves to enable Northern to continue to provide needed services to its citizens in the aftermath of a natural disaster or other serious widespread emergencies.

Cash Management

Northern observes a cash management policy which provides guidelines for the prudent investment of cash and outlines the policies for maximizing the efficiency of the cash management system. The ultimate goal is to enhance the economic status of Northern while protecting its pooled cash.

Northern adopts the Budget on a basis consistent with generally accepted accounting principles. All appropriations lapse at fiscal year end unless encumbered or specifically designated to be carried forward to the subsequent year.