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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