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Home My WebLink AboutAgenda BOC 061814AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Wednesday June 18, 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. May 22, 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 FY 2014/15 Operating and Capital Improvement Budget Update City of Palm Beach Gardens Budget Oversight Committee June 18, 2014 Preliminary Working Draft For Discussion Purposes Only FY 2015 Budget Timeline Official preliminary property valuation issued May 28 th Line-item worksheets distributed to BOC in June Certified property valuation issued July 1st Council sets tentative maximum millage on July 10th Final line-item budget document issued in July Formal public presentation in August BOC prepares report and presents to Council Public hearings on September 4th and 18th Preliminary Working Draft For Discussion Purposes Only Property Values Rise Property value last year $8.2B New construction totals $146.2M Increase of 5% from last year in existing property Property value this year $8.7B Third consecutive year values have increased; however, total is still down 12% from high of $9.9B in 2008 Preliminary Working Draft For Discussion Purposes Only Proposed Maximum Millage Rate (will be adjusted after receipt of July 1st Certified Valuation) Operating millage 5.7404 – no change Debt millage .1622 – down from .1733 Combined rate 5.9026 – down slightly from 5.9137 Preliminary Working Draft For Discussion Purposes Only Effect of Proposed Maximum Tax Rate on Typical Homestead Property Owner $200,000 Taxable Value Current $1,183 Proposed $1,203 Increase of $20 $300,000 Taxable Value Current $1,774 Proposed $1,802 Increase of $28 $400,000 Taxable Value Current $2,365 Proposed $2,401 Increase of $35 Note: The above calculations assume Homestead properties increased by 1.5% this year under Save Our Homes (2013 CPI); individual results will vary Preliminary Working Draft For Discussion Purposes Only Impacts of Economic Downturn Renegotiated public safety pension benefits Eliminated pay increases where contracts allowed and renegotiated collective bargaining agreements so that all groups of employees went three years with no salary increases Cut almost $3M in operating costs Reduced full-time staff almost 15% Property taxes reduced by $7M 2007-2012 Preliminary Working Draft For Discussion Purposes Only FY 2014/2015 Budget Strategy and Focus Areas FY 2014/2015 Budget Strategy Operating Cost Factors Personnel Cost Factors Investment in Infrastructure/Use of Reserves Preliminary Working Draft For Discussion Purposes Only Operating Cost Factors Increased usage of facilities Turf (participants doubled in last 5 years) Restrooms/fixtures/plumbing Equipment – playground, turf, irrigation, etc. Aging Facilities Deterioration of Stormwater infrastructure Roofs Interior/exterior paint Parking lot surfaces Preliminary Working Draft For Discussion Purposes Only Enhanced Repair & Maintenance Program •Turf replacement, irrigation repairs, playground equipment repairs - $346,000 Parks •Roof repairs/maintenance, bathroom fixture/plumbing repairs, carpet/flooring replacement, interior/exterior painting of various City buildings - $541,000 Facilities •Increase number of cuts of City maintained medians to 41 per year - $326,000 Medians •Resurface various parking lots throughout City - $188,000 Parking Lots Preliminary Working Draft For Discussion Purposes Only Stormwater System Improvements •Implement first year of improvements to be identified and prioritized in report being prepared in 2014 •Currently projected as part of CIP program in Gas Tax Fund - $500,000 Stormwater Preliminary Working Draft For Discussion Purposes Only Personnel Cost Factors Salaries IAFF 0% increase per contract PBA 5.2% average increase SEIU and Non-bargaining 3.5% average increase Pensions Police $2.4M Contribution Fire $3.4M Contribution FRS $1.2M Contribution Insurance Transfer to Health Insurance Fund $6.9M (0% increase) Workers Comp & Property/Liability $1.3M (3% increase) Preliminary Working Draft For Discussion Purposes Only Police Pension Funding Progress Funded ratio up from 48.9% in 2006 to 69.2% Annual contribution down $1.4M from 2012 Preliminary Working Draft For Discussion Purposes Only Fire Pension Funding Progress Funded ratio up from 38.3% in 2004 to 77.2% Annual contribution down $1.1M from 2012 Preliminary Working Draft For Discussion Purposes Only Investment in Infrastructure/Use of Reserves Budget Stabilization Reserve Estimated Balance as of 9/30/2014 - $4M Increased from $2.4M since established in 2011 Projected drawdown of $1M to help augment and accelerate funding of Police Training Facility and Johnson Dairy Road Improvements Preliminary Working Draft For Discussion Purposes Only All Funds Budget Summary Transfers 2.1 % Personnel 44.9% Operating 14.9% Capital 5.4% Debt 3.4% Reserves 29.3% $20.1M Total Expenditures/Reserves All Funds - $134,897,560 $60.6M $39.5M Preliminary Working Draft For Discussion Purposes Only All Funds Budget Summary $57.5M $37M Other 1.3% Franchise Fees 3.9% User Fees 14.2% Intergovernmental 4.2% Licenses and Permits 2.1% Ad Valorem 36.3% Carryover 30.6% Other Taxes 2.7% Transfers 2.1% $48.9M $41.2M $19.1M $5.2M $5.7M Total Revenues/Sources All Funds - $134,897,560 Impact Fees 2.6% Preliminary Working Draft For Discussion Purposes Only General Fund Budget Summary $57.5M $37M Transfers 2.1% Personnel 47.9% Operating 15.1% Capital 1.4% Debt 4.5% Reserves 29.0% $15.2M $29.8M $4.5M Total Expenditures/Reserves General Fund- $102,652,302 $49.2M Preliminary Working Draft For Discussion Purposes Only General Fund Budget Summary $57.5M $37M $47.6M Other 1.0% Fines & Forfeitures 0.2% Franchise Fees 5.1% User Fees 4.0% State Revenue 4.9% Licenses and Permits 3.0% Ad Valorem 48% Other Taxes 3.5% Carryover 30.0% Transfers .7% $5.2M $4.9M Total Revenues/Sources General Fund- $102,652,302 $48.9M $30.8M Preliminary Working Draft For Discussion Purposes Only General Fund Budget Changes Revenues and Sources Ad valorem up from $46M to $48.9M Other revenues up from $21.5M to $22.8M Excluding beginning balance and transfers, revenues up 6% Expenditures and Uses Personnel costs up from $47.5M to $49.2M Operating costs up from $14M to $15.4M Excluding reserves and transfers, expenditures up 5.2% Preliminary Working Draft For Discussion Purposes Only Other General Fund Highlights •Plaza Amphitheater Improvements $325,000 •Radio Communications Monopole 200,000 •Additional Police Vehicles 120,000 •Energy Efficiency Upgrades 50,000 •Stump Grinder 50,000 •IP based video camera system 45,000 Capital Outlay •No charge for curbside garbage or trash collection •No electric, water, or natural gas utility service taxes •No City storm water assessments Other Fees and Taxes Total GF capital $1,400,000 Preliminary Working Draft For Discussion Purposes Only Cost Comparison To Other Cities (note: Table below reflects year-old data) Assumptions: $250,000 assessed property; $2,400 electric; $2,400 communications; $1,480 water/gas/oil/propane Preliminary Working Draft For Discussion Purposes Only City City Ad Valorem P.B. Gardens Jupiter Boca Raton Royal PB Wellington N. Palm Beach Riviera Beach W. Palm Beach Cost Comparison To Other Cities (note: Table below reflects year-old data) City City Ad Valorem P.B. Gardens 1,185 Jupiter 566 Boca Raton 702 Royal PB 384 Wellington 500 N. Palm Beach 1,445 Riviera Beach 1,800 W. Palm Beach 1,653 Preliminary Working Draft For Discussion Purposes Only Assumptions: $250,000 assessed property; $2,400 electric; $2,400 communications; $1,480 water/gas/oil/propane Cost Comparison To Other Cities (note: Table below reflects year-old data) City City Ad Valorem Other Ad Valorem P.B. Gardens 1,185 3,354 Jupiter 566 3,814 Boca Raton 702 3,533 Royal PB 384 4,046 Wellington 500 4,046 N. Palm Beach 1,445 3,331 Riviera Beach 1,800 3,331 W. Palm Beach 1,653 3,331 Preliminary Working Draft For Discussion Purposes Only Assumptions: $250,000 assessed property; $2,400 electric; $2,400 communications; $1,480 water/gas/oil/propane Cost Comparison To Other Cities (note: Table below reflects year-old data) City City Ad Valorem Other Ad Valorem Utility Tax CST Solid Waste Storm Water/ Fire Total P.B. Gardens 1,185 3,354 0 84 0 0 4,623 Jupiter 566 3,814 270 125 118 49 4,942 Boca Raton 702 3,533 462 130 0 80 4,907 Royal PB 384 4,046 438 125 92 0 5,085 Wellington 500 4,046 300 125 165 0 5,136 N. Palm Beach 1,445 3,331 318 125 104 0 5,323 Riviera Beach 1,800 3,331 378 125 151 0 5,785 W. Palm Beach 1,653 3,331 498 130 192 25 5,829 Preliminary Working Draft For Discussion Purposes Only Assumptions: $250,000 assessed property; $2,400 electric; $2,400 communications; $1,480 water/gas/oil/propane Other Fund Highlights •Total Expenditures $1,300,000 •Storm Water Improvements $500,000 •Various Street/Sidewalk Projects 510,000 •Street Lighting 225,000 Gas Tax Special Revenue Fund •Projected Revenues $1,600,000 •(Conservative estimate due to closings over part of last 2 years – difficult to estimate effect of renovations until 1 full year of history) Golf Special Revenue Fund Preliminary Working Draft For Discussion Purposes Only Other Fund Highlights •Golf Course Clubhouse Expansion $1,300,000 •Expansion of City Park 200,000 •Golf Course Bathrooms 150,000 Recreation Impact Fee Fund •Transfer to General Fund for Debt Service $685,000 •Johnson Dairy/Military Tr. Intersection Improvements 600,000 •Campus Drive Improvements 600,000 •Riverside Drive/Burns Rd. Signal Improvements 100,000 Road Impact Fee Fund Preliminary Working Draft For Discussion Purposes Only Other Fund Highlights •Police Training/Shooting Facility $1,880,000 Police Impact Fee Fund Preliminary Working Draft For Discussion Purposes Only Other Fund Highlights •Replacement of city vehicles $462,500 Fleet Maintenance and Replacement Fund •Maintained Current Level of Funding $6,900,000 •Projected Reserve Balance 5,000,000 Self-insurance Fund Preliminary Working Draft For Discussion Purposes Only Preliminary Working Draft For Discussion Purposes Only Taxes 2015 2016 2017 2018 2019 Ad Valorem Taxes 48,955,685 50,399,116 52,094,122 53,928,380 54,875,161 Local Business Taxes 1,430,000 1,444,300 1,458,743 1,473,330 1,488,064 Utility Taxes 2,184,000 2,205,840 2,227,898 2,250,177 2,272,679 Special Assessment - 123,976 123,976 123,976 123,976 Franchise Fees 5,240,000 5,292,400 5,345,324 5,398,777 5,452,765 Licenses and Permits 3,047,500 3,123,768 2,213,233 1,953,431 1,884,821 Intergovernmental 4,990,000 5,039,900 5,090,299 5,141,202 5,192,614 Charges for Services 4,116,489 4,140,007 4,163,759 4,187,749 4,211,979 Fines and Forfeitures 155,000 156,550 158,116 159,697 161,294 Investment Income 255,000 255,000 255,000 255,000 255,000 Miscellaneous 790,425 798,329 806,313 814,376 822,519 Other Financing Sources 684,824 690,660 694,320 687,882 688,779 71,850,938$ 73,671,862$ 74,633,119$ 76,375,997$ 77,431,671$ General Government 15,648,477 15,988,865 16,422,483 16,873,004 17,341,234 Public Safety 39,976,962 41,047,085 42,586,029 44,194,483 45,876,132 Physical Environment 8,464,794 8,698,640 8,939,780 9,188,474 9,444,992 Culture/Recreation 643,410 660,625 678,334 696,552 715,295 Capital Outlay 1,417,350 1,215,750 1,751,650 1,911,550 3,017,550 Debt Service 4,580,625 4,457,135 4,176,057 3,905,879 3,178,464 Operating Transfers 2,150,836 600,000 - - - 72,882,454$ 72,668,100$ 74,554,333$ 76,769,942$ 79,573,667$ Excess Revenues (Expenditures)(1,031,516) 1,003,762 78,786 (393,946) (2,141,996) Unassigned Fund Balance - Beginning 23,470,597 23,470,597 23,470,597 23,470,597 23,470,597 Assigned for Budget Stabilization - Beginning 4,067,621 3,036,105 4,039,866 4,118,652 3,724,707 Unassigned Fund Balance - Ending 23,470,597 23,470,597 23,470,597 23,470,597 23,470,597 Assigned for Budget Stabilization - Ending 3,036,105 4,039,866 4,118,652 3,724,707 1,582,711 Unassigned Fund Balance % of Expenditures 32.20%32.30%31.48%30.57%29.50% Projected Operating Millage 5.7404 5.7404 5.7404 5.7404 5.7404 Projected Debt Millage 0.1622 0.1435 0.1387 0.1339 0.0586 Projected Total Millage 5.9026 5.8839 5.8791 5.8743 5.7990 EXPENDITURES/OTHER FINANCING USES Total Expenditures and Other Financing Uses Total Revenue and Other Financing Sources REVENUES/OTHER FINANCING SOURCES Summary FY 2014/2015 Budget Provides Spending Plan to Accomplish Following: Establishes an enhanced repair and maintenance program to ensure facilities are maintained at level of service residents expect Provides significant investment in infrastructure, increasing from $3.6M to $7.2M, using $1M from Budget Reserves Provides funding for all collective bargaining agreements, including recent PBA contract No change in operating tax rate, and a slight reduction in overall tax rate Preliminary Working Draft For Discussion Purposes Only Questions Preliminary Working Draft For Discussion Purposes Only