HomeMy WebLinkAboutAgenda BOC 042414AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COMMITTEE
Thursday April 24, 2014, 8:30 AM
CITY COUNCIL CHAMBERS
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL:
Regular Members
Mark Marciano Chair
L. Marc Cohn Vice-Chair
Mark Feldmesser Regular Member
Dennis Beran Regular Member
Mark Schulte Regular Member
IV. ADDITIONS, DELETIONS, MODIFICATIONS
V. APPROVAL OF MINUTES:
1. March 6, 2014
VI. ITEMS BY COUNCIL LIAISON
VII. ITEMS BY STAFF LIAISON:
1. Review of FY 2013 Comprehensive Annual Financial Report
2. Review of FY 2014 Estimated Revenues and Expenditures
3. Status of FY 2015 Budget preparation
VIII. OLD BUSINESS
IX. NEW BUSINESS
X. COMMENTS BY PUBLIC
XI. COMMENTS BY THE BOARD
XII. ADJOURNMENT
Fiscal Year 2014 Projections
General Fund Revenue, Expenses
and Ending Fund Balance
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14
Estimated expenditures FYE 9/30/14
Estimated Fund Balance 9/30/14
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
Committed For Economic Development
Estimated Open Purchase Orders
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14
Estimated Fund Balance 9/30/14
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
Committed For Economic Development
Estimated Open Purchase Orders
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
Committed For Economic Development
Estimated Open Purchase Orders
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
Committed For Economic Development
Estimated Open Purchase Orders
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
(708,627)
Committed For Economic Development
Estimated Open Purchase Orders
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
(708,627)
Committed For Economic Development (2,632,575)
Estimated Open Purchase Orders
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
(708,627)
Committed For Economic Development (2,632,575)
Estimated Open Purchase Orders (2,805,896)
Assigned for Capital Improvement Projects
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
(708,627)
Committed For Economic Development (2,632,575)
Estimated Open Purchase Orders (2,805,896)
Assigned for Capital Improvement Projects (578,165)
Assigned for Budget Stabilization
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
(708,627)
Committed For Economic Development (2,632,575)
Estimated Open Purchase Orders (2,805,896)
Assigned for Capital Improvement Projects (578,165)
Assigned for Budget Stabilization (4,699,600)
Estimated Undesignated Fund Balance 9/30/14
Projected Fund Balance as of 9/30/14
Fund Balance 10/1/13 $34,749,730
Estimated revenues FYE 9/30/14 70,309,390
Estimated expenditures FYE 9/30/14 (69,248,848)
Estimated Fund Balance 9/30/14 $35,810,272
Less:
Restricted Assets (Prepayments, NMRCC, Law
Enforcement Trust)
(708,627)
Committed For Economic Development (2,632,575)
Estimated Open Purchase Orders (2,805,896)
Assigned for Capital Improvement Projects (578,165)
Assigned for Budget Stabilization (4,699,600)
Estimated Undesignated Fund Balance 9/30/14 $24,385,409 35.2%
Fiscal Year 2015 Budget Process Update
Timeline and Significant Issues
Where are we in the process?
Departments’ initial
requests are being
compiled for City
Manager review
Fiscal year 2014 revenues
and expenditure
estimates for all other
funds being reviewed
Where are we in the process?
Revenue estimates for 2015 being
developed
•Building Permit, State Shared Revenues
•Charges for Services
•Impact Fee Revenues
•Special Revenue Fund Revenues
Awaiting property value
estimates from Property
Appraiser – early estimates will
be distributed by Gary Nikolits on
4/25/2014
What’s next?
Preparation of line item budget worksheets
Distribute to Budget Committee in June (after
receipt of preliminary property values)
Set maximum millage in July
Budget Committee finalizes
report to Council in August
Two public
hearings in
September
Collective Bargaining Updates
Council imposed new terms and condition in July, 2012
Special Magistrate report concurred with management position
Special Magistrate hearing held in April, 2012
Negotiations reached impasse in 2012
Update on PBA
Collective Bargaining Updates
Update on PBA (cont.)
Summary of pension changes implemented in
September, 2012:
•Reduced multiplier from 3.5% to 2.75%
•Reduced maximum benefit from 100% to 75% of AFC
•Changed definition of earnings to base pay only
•Increased retirement age from age 52/10 years of service, to
age 59/10 years of service
•Eliminated service based retirement of 20 years, regardless of
age
Collective Bargaining Updates
Continued negotiations to try to agree on a contract for 3 years, from
10/1/2013 through 9/30/2016
Union and City agreed on a 1 year contract from 10/1/2012 through
9/30/2013 with the new pension changes in place
Annual savings from pension changes $1 million
Update on PBA (cont.)
Collective Bargaining Updates
Update on PBA (cont.)
On 3/6/2014, Council approved a new 3 year contract, with
following pension changes:
•Changed retirement from age 59/10 years of service, to age 55/10 years
•Reinstituted a service based retirement of 25 years, regardless of age
•Changed eligibility to enter DROP so an employee may delay DROP entry until they
have reached maximum 75% benefit
•Agreed that Excess Chapter 185 Reserve of $538,000 as of 10/1/2012 may be used
by City to offset its annual contribution
•Estimated additional cost of above changes in current contract period is $168,000
Contract provides for salary adjustments of approximately 5%
next fiscal year
Collective Bargaining Updates
Update on IAFF
Summary of pension changes implemented in September,
2012:
•Reduced maximum benefit from 100% to 75% of AFC
•Changed definition of earnings to base pay only
•Allows City to use approximately $500,000 of Chapter 175 Premium Tax
revenues to offset its annual contribution
•Annual savings to City approximately $1.2 million
•Contract runs through 9/30/2015
Contract provides for no salary increases next fiscal year
Questions?
Comprehensive Annual Financial Report
Finance Department
City of Palm Beach Gardens
For the Fiscal Year Ended September 30, 2013
Overview
City received an unmodified opinion. This is the
highest level of assurance.
Auditor found no instances of noncompliance with
agreements, rules and regulations.
No deficiencies in internal control were noted
There were no management letter comments
There were no auditor adjustments to the general
ledger
General Fund Financial Highlights
Total revenues and other financing sources of
$75.4 million
Total expenditures and other financing uses of
$69.5 million
Fund balance increased by $5.9 million mostly due
to unspent bond proceeds
Unassigned fund balance equaled $27.1 million or
39% of total expenditures. Includes $3.6 million
budget stabilization
Unassigned fund balance represents 4 1/2 months
of expenditures
General Fund Revenues
Current Year vs Prior Year
Taxes increased by $1.2 million due to increases in property values
Licenses and permits increased by $1.1 million due to an increase in building permits on new construction activity
Percent Percent Increase
2013 of 2012 of (Decrease)
Revenue Sources Amount Total Amount Total From 2012
Taxes 48,590,811 $ 70.06%47,432,288 $ 71.1%1,158,523 $ 2.4%
Franchise fees 5,101,610 7.32%5,327,897 8.0%(226,287) (4.2)%
Licenses and permits 3,537,512 5.10%2,414,586 3.7%1,122,926 46.5%
Intergovernmental 6,488,781 9.46%6,214,031 9.3%274,750 4.4%
Charges for services 3,995,591 5.76%3,910,601 5.9%84,990 2.2%
Fines and forfeitures 297,308 0.37%150,291 0.2%147,017 97.8%
Investment income 155,479 0.20%297,271 0.4%(141,792) (47.7)%
Miscellaneous 1,184,987 1.71%988,550 1.4%196,437 19.9%
Total revenues 69,352,079 $ 100.0%66,735,515 $ 100.0%2,616,564 $ 3.9%
Percentage
of Increase
(Decrease)
General Fund Expenditures
Current Year vs Prior Year
Capital outlay increased by $3.2 million due to capital leases for a fire truck and two rescue units as well as capital improvements to the City’s golf course.
Public safety decreased by $1.8 million due to the results of pension reform and other contractual changes.
Percent Percent Increase
2013 of 2012 of (Decrease)
Expenditures Amount Total Amount Total From 2012
General government 13,891,617 $ 20.0%13,101,603 $ 19.4%790,014 $ 6.0%
Public safety 39,268,996 56.5%41,127,279 61.2%(1,858,283) (4.5)%
Culture and recreation 585,825 0.8%832,609 1.2%(246,784) (29.6)%
Physical environment 6,496,310 9.4%6,151,650 9.2%344,660 5.6%
Capital outlay 4,835,916 7.0%1,615,525 2.4%3,220,391 199.3%
Debt service 4,373,414 6.3%4,388,564 6.5%(15,150) (0.3)%
Total expenditures 69,452,078 $ 100.0%67,217,230 $ 99.9%2,234,848 $ 3.3%
Percentage
of Increase
(Decrease)
Fiscal
Year Total Debt
Debt
per
Capita
2004 41,754,850 985
2005 39,326,066 863
2006 40,431,975 839
2007 37,568,177 761
2008 35,398,776 704
2009 32,469,581 650
2010 29,520,839 590
2011 26,528,380 548
2012 24,371,258 503
2013 26,083,032 527
Non Ad Valorem
Revenue Available
for Debt Coverage
Debt
Service
Payments
% of Non
Ad Valorem
Revenue
Actual
Coverage
$26,067,528 $2,833,705 10.87% 9.20
Debt Compliance
Debt Covenants
Total debt service due in each fiscal year
shall not exceed 50% of non ad valorem
revenues
Total non ad valorem revenue must
exceed two times the maximum debt
service requirements
Financial Position
General Fund reserves equal $34.7 million
$23.5 million is unrestricted
$3.6 million assigned to budget stabilization
Total City debt has been reduced by $15.7 million or 37%
over a 10 year period
The self insurance fund ended the year with reserves of $3.9
million, which is enough to cover 9 months of claim
expenses.
Pension Plans
Pension Plan Unfunded
Liability
Funded Ratio
Police $22,297,433 69.1%
Fire $19,149,261 71.9%
Questions?
Fiscal Year 2014 Projections