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Home My WebLink AboutAgenda BOC 052214AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Thursday May 22, 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. April 24, 2014 VI. ITEMS BY COUNCIL LIAISON VII. ITEMS BY STAFF LIAISON: 1. Status of FY 2015 Budget preparation VIII. OLD BUSINESS IX. NEW BUSINESS X. COMMENTS BY PUBLIC XI. COMMENTS BY THE BOARD XII. ADJO URNMENT Budget Oversight Committee May 22, 2014 Estimate provided by Property Appraiser on April 25th - $8.6 billion (up from $8.1 billion) This is the 3rd consecutive year values have increased, but still down 13% from high of $9.9 billion in FY 2008 Official preliminary numbers to be issued June 1st Final numbers to be issued July 1st Preliminary Working Draft For Discussion Purposes Only Currently projecting no change in operating millage 5.7404 Debt service millage projected to decrease to .1641 from .1733 Preliminary Working Draft For Discussion Purposes Only Fund Balance 10/1/13 $34,749,730 Estimated revenues FYE 9/30/14 70,309,390 Estimated expenditures FYE 9/30/14 (70,793,861) Estimated Fund Balance 9/30/14 $34,265,259 Less: Restricted Assets (Prepayments, NMRCC, Law Enforcement Trust) (630,808) 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 (4,147,218) Estimated Undesignated Fund Balance 9/30/14 $23,470,597 Projected General Fund Balance as of 9/30/14 Increased $1,545,013 for Sunset/40th Terrace Water/Road Project 33.1% Preliminary Working Draft For Discussion Purposes Only Estimated Beginning Balance 10/1/14 (Budget Stabilization and Unassigned Reserves) $27,617,815 Estimated revenues FYE 9/30/15 71,429,676 Less Estimated expenditures FYE 9/30/15: Personnel (49,491,600) Operating (15,447,386) Capital (1,474,135) Debt Service (4,580,625) Other Uses (92,300) Transfers (2,150,836) Estimated Ending Balance 9/30/15 $25,810,609 Projected General Fund Revenue, Expenditures, and Balance as of 9/30/15 Total Projected Expenditures $73,236,882 Preliminary Working Draft For Discussion Purposes Only Estimated Beginning Balance 10/1/14 (Budget Stabilization and Unassigned Reserves) $27,617,815 Estimated revenues FYE 9/30/15 71,429,676 Less Estimated expenditures FYE 9/30/15: Personnel (49,491,600) Operating (15,447,386) Capital (1,474,135) Debt Service (4,580,625) Other Uses (92,300) Transfers (2,150,836) Estimated Ending Balance 9/30/15 $25,810,609 Consists of: Assigned for Budget Stabilization 2,340,012 Projected General Fund Revenue, Expenditures, and Balance as of 9/30/15 Total Projected Expenditures $73,236,882 Preliminary Working Draft For Discussion Purposes Only Estimated Beginning Balance 10/1/14 (Budget Stabilization and Unassigned Reserves) $27,617,815 Estimated revenues FYE 9/30/15 71,429,676 Less Estimated expenditures FYE 9/30/15: Personnel (49,491,600) Operating (15,447,386) Capital (1,474,135) Debt Service (4,580,625) (92,300) Transfers (2,150,836) Estimated Ending Balance 9/30/15 $25,810,609 Consists of: Assigned for Budget Stabilization 2,340,012 Estimated Unassigned Fund Balance 9/30/14 $23,470,597 Projected General Fund Revenue, Expenditures, and Balance as of 9/30/15 32 % Total Projected Expenditures $73,236,882 Preliminary Working Draft For Discussion Purposes Only Capital Improvement Projects •In FY 2014, $1,545,000 is being transferred for the 40th Terrace and Sunset Drive water/roads project •In FY 2015, one-time transfers to Impact Funds for following projects: •Road Impact - $950,000 to augment funding for Johnson Dairy Road improvement project •Police Impact - $1,200,000 to help accelerate construction of a police training facility •Transfers from Budget Stabilization Reserve Fund total $3,695,000, and reduce estimated Reserve Fund to $2,340,012 in FY 2015 Preliminary Working Draft For Discussion Purposes Only Excluding Transfers and Capital Expenditures, Operating Expenses and Personnel Costs Have Increased 4.4% Total All Funds FY 2015 60,397,534$ 19,979,945$ 7,611,635$ 4,580,625$ 2,835,660$ 92,300$ 95,497,699$ FY 2014 58,220,992$ 18,555,863$ 3,576,150$ 4,578,626$ 889,030$ 89,112$ 85,909,773$ Increase (Decrease)2,176,542$ 1,424,082$ 4,035,485$ 1,999$ 1,946,630$ 3,188$ 9,587,926$ % change 3.74%7.67%112.84%0.04%218.96%3.58%11.16% Personnel Operating Capital Debt Service Operating Other Grand Expenses Expenses Expenses Expenses Transfers Uses Total Preliminary Working Draft For Discussion Purposes Only Excluding Transfers and Capital Expenditures, Operating Expenses and Personnel Costs Have Increased 5.0% General Fund FY 2015 49,491,600$ 15,447,386$ 1,474,135$ 4,580,625$ 2,150,836$ 92,300$ 73,236,882$ FY 2014 47,534,576$ 14,092,433$ 1,236,150$ 4,578,626$ 200,000$ 89,112$ 67,730,897$ Increase (Decrease)1,957,024$ 1,354,953$ 237,985$ 1,999$ 1,950,836$ 3,188$ 5,505,985$ % change 4.12%9.61%19.25%0.04%975.42%3.58%8.13% Personnel Operating Capital Debt Service Operating Other Grand Expenses Expenses Expenses Expenses Transfers Uses Total Preliminary Working Draft For Discussion Purposes Only Personnel Operating Capital Debt Service Operating Other Grand Expenses Expenses Expenses Expenses Transfers Uses Total Impact Funds FY 2015 -$ -$ 5,130,000$ -$ 684,824$ -$ 5,814,824$ FY 2014 -$ 19,999$ 1,490,000$ -$ 689,030$ -$ 2,199,029$ Increase (Decrease)-$ (19,999)$ 3,640,000$ -$ (4,206)$ -$ 3,615,795$ % change 0.00%-100.00%244.30%0.00%-0.61%0.00%164.43% Preliminary Working Draft For Discussion Purposes Only Operating Costs Preliminary Working Draft For Discussion Purposes Only Repairs & Maintenance •Parks: Turf replacement, irrigation repairs, playground equipment repairs - $346,400 •Facilities: Bathroom repairs, plumbing, roof repair program, carpet/flooring replacement - $475,900 •Painting: Various buildings throughout City - $65,100 •Median Maintenance - $326,000 •Parking Lot Resurfacing - $188,000 •Overall, operating costs for all funds are up $1.4 million (7.6%) Preliminary Working Draft For Discussion Purposes Only Personnel Preliminary Working Draft For Discussion Purposes Only PBA Salaries (per new contract) •Total increase in FY 2015 - $566,315 (5.2%) •Total increase in FY 2016 - $341,671 (3%) IAFF Salaries – no change in FY 2015 per current contract SEIU and non-union General Employees •Total increase in FY 2015 - $444,182 (3.5%) Preliminary Working Draft For Discussion Purposes Only Public Safety Pensions •Increase in Police contribution - $69,000 – total cost $2.8 million •Funded Ratio as of 10/1/2013 – 69.9% •Increase in Fire contribution - $180,000 – total cost $3.4 million •Funded Ratio as of 10/1/2013 – 77.2% Preliminary Working Draft For Discussion Purposes Only Other Personnel Costs •Health insurance rates held flat for FY 2015 •Estimated Workers Compensation costs up $21,000 (3.9%) •Overall, Personnel Costs for all funds are up 3.7% Preliminary Working Draft For Discussion Purposes Only Capital Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Road Impact Fund: •Campus Drive Improvements - $600,000 •This project is planned to improve the existing roadway cross section, pedestrian, landscape, and lighting amenities along Campus Drive from RCA Boulevard to PGA Boulevard. Additionally, the intersection of Fairchild and Campus Drive is planned to be signalized, depending on traffic signal warrant conditions. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Road Impact Fund: •Riverside Dr/Burns Road Signal Improvements - $100,000 •This project is planned to improve the traffic signal operation at Riverside Drive and Burns Road. The existing intersection geometry does not include a protected/permissive northbound left turn movement that is needed to improve traffic flow and delay along Riverside Drive. The additional equipment necessary may include a traffic signal controller, traffic signal heads, new traffic signal cables and loop detectors. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Recreation Impact Fund: •Golf Course Clubhouse Renovation- $1,300,000 •This consists of the replacement and expansion of the existing clubhouse, cart staging area and starter area, which will allow expansion of the Pro Shop, Food & Beverage functions. This project will also increase programming opportunities to include tournaments, outings, social groups, and civic organizations. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Recreation Impact Fund: •City Park Expansion- $500,000 •This is the third year of funding for this multi-year project, which, when complete, will include renovations to City Park and the Tennis Center. These renovations will include multi-purpose fields, tennis courts, lighting, parking, nature trails, and other amenities. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Recreation Impact Fund: •Golf Course Restrooms- $150,000 •This project includes the installation of two (2) freestanding composting restrooms for both men and women. Restroom facilities do not currently exist on the golf course. The facilities would be ADA compliant and meet PBC building codes for hurricanes. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Police Impact Fund: •Police Training Facility - $1,800,000 •This project consists of a firearms and defensive tactics training facility, as well as a storage facility to protect expensive vulnerable equipment during major storms and hurricanes. This facility will allow police officers to perform firearms training on a regular basis, as required by FDLE, eliminating 90 mile round trips currently required, and provide ideal space for defensive tactics training and equipment storage. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •General Fund: •Plaza Improvements- $325,000 •The Plaza is an open air space with a stage. The intention for the area is to hold community and private (rental) events. Currently, the stage lacks cover for rain protection and the audience area does not have shelter. This limits the amount of public events that can be held annually. Additionally, extra costs are incurred when an event is planed to provide temporary shelter for both the stage and audience. The funding requested would provide both types of shelter and increase the opportunity to provide the public with diverse cultural opportunities. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •General Fund: •Police Radio Monopole - $200,000 •This project consists of the replacement of an existing radio communication tower that is currently being rented at Old Dixie north of Northlake Blvd. The construction of this tower on City owned property near Hilltop Mobile Home Park will eliminate rent expense and generate revenue by leasing the tower to other communication providers. Preliminary Working Draft For Discussion Purposes Only Major CIP Projects •Gas Tax Fund: •Stormwater Repair and Renovations- $500,000 •In an effort to maintain the City’s stormwater pipelines, regular cleaning, inspecting, evaluation, and repair should occur to assure proper runoff and discharge to canal systems. By conducting these activities, this will prevent sedimentation in the canal systems and allow stormwater to flow freely from roadways and swales. City staff has identified areas of deterioration in several stormwater pipes and anticipates that more areas will be found as the system continues to age. Funding is requested for the implementation of the Stormwater Inventory and Management Plan. Preliminary Working Draft For Discussion Purposes Only Summary of Capital •Capital Expenditures in all funds are projected at $7.6 million, up from $4 million in FY 2014 Preliminary Working Draft For Discussion Purposes Only FY 2015 Budget Highlights •Conitinued economic recovery •Maintain operating tax rate, lower debt service tax rate •Leverage use of Budget Stabilization Reserve Account and maintain Unassigned Reserve Balance •Reinvest in capital improvement projects •Repair, refurbish and renovate existing infrastructure •Provide moderate salary adjustments per union contracts Preliminary Working Draft For Discussion Purposes Only Budget Timeline •Official preliminary property valuation issued June 1st •Council sets tentative maximum millage on July 10th •Line-item worksheets distributed to BOC in June •Finish review of capital improvement projects with departments •Certified property valuation issued July 1st Preliminary Working Draft For Discussion Purposes Only Budget Timeline •Next BOC meeting on June 26th •Line-item proposed budget document will be sent to Council and BOC in July •Budget will be posted on City’s website in July •BOC will have June and July meetings to discuss the budget •BOC prepares report and presents to Council in September Preliminary Working Draft For Discussion Purposes Only Questions? Preliminary Working Draft For Discussion Purposes Only