HomeMy WebLinkAboutAgenda BOC 032609AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COM M ITTEE
Thursdav March 26. 2009 8:30 AM
CITY COUNCIL CHAMBERS
I. PLEDGE OF ALLEGIANCE
II. ROLL GALL:
Reqular Members
Ghair
L. Marc Cohn Vice Ghair
Mark Veil Regular Member
Bernard Pettingill Regular Member
Kenneth Menard Regular Member
III. GONSIDERATION OF APPOINTMENT OF CHAIR
¡V. ELECTION OF OFFICERS
NONE
V. ADDITIONS. DELETIONS. MODIFICATIONS
NONE
VI. APPROVAL OF MINUTES:
January 22,2009 Minutes
VII. ITEMS BY STAFF LIAISON
1. Presentation and Discussion regarding Annexation of Northlake Blvd.
Propefties
2. Update regarding Council/City Manager Budget Workshop
VIII. OLD BUSINESS
NONE
IX. NEW BUSINESS
NONE
X. COMMENTS BY PUBLIC
NONE
X1. ADJOURNMENT
PO
T
E
N
T
I
A
L
A
N
N
E
X
A
T
I
O
N
PO
T
E
N
T
I
A
L
AN
N
E
X
A
T
I
O
N
EV
A
L
U
A
T
I
O
N
Bu
d
g
e
t
O
v
e
r
s
i
g
h
t
C
o
m
m
i
t
t
e
e
Bu
d
g
e
t
Ov
e
r
s
i
g
h
t
Co
m
m
i
t
t
e
e
Ma
r
c
h
2
6
,
2
0
0
9
A nn
e
x
a
t
i
o
n
•
F
l
o
r
i
d
a
S
t
a
t
u
t
e
s
C
h
a
p
t
e
r
1
7
1
(
S
e
c
t
i
o
n
1
7
1
.
0
4
2
)
–
C
o
n
t
i
g
u
o
u
s
–
Co
m
p
a
c
t
–
U
r
b
a
n
L
o
c
a
t
i
o
n
Ub
S
i
R
t
–
U r b an
S er
v
i ce
s
R ep
o
r
t
•
V
o
l
u
n
t
a
r
y
•
Le
g
i
s
l
a
t
i
v
e
Le
g
i
s
l
a
t
i
v
e
•
I
n
v
o
l
u
n
t
a
r
y
–
R
e
f
e
r
e
n
d
u
m
–
Vo
t
e
–
S
p
e
c
i
a
l
E
l
e
c
t
i
o
n
s
An
n
e
x
a
t
i
o
n
R
e
f
e
r
e
n
d
u
m
S
c
h
e
d
u
l
e
•
A
n
n
e
x
a
t
i
o
n
P
o
l
i
c
y
-
V
o
l
u
n
t
a
r
y
•
C
o
m
p
l
e
t
e
U
r
b
a
n
S
e
r
v
i
c
e
s
R
e
p
o
r
t
–
De
p
a
r
t
m
e
n
t
H
e
a
d
s
–
Ci
t
y
C
o
u
n
c
i
l
Su
b
m
i
t
t
o
P
a
l
m
B
e
a
c
h
C
o
u
n
t
y
–
Su
b
m
i
t
to
Pa
l
m
Be
a
c
h
Co
u
n
t
y
•
A
d
o
p
t
i
o
n
o
f
R
e
f
e
r
e
n
d
u
m
L
a
n
g
u
a
g
e
&
An
n
e
x
a
t
i
o
n
O
r
d
i
n
a
n
c
e
•
S
u
p
e
r
v
i
s
o
r
o
f
E
l
e
c
t
i
o
n
s
•
R
e
f
e
r
e
n
d
u
m
–
5
1
%
R
e
q
u
i
r
e
d
–
R
e
g
i
s
t
e
r
e
d
V
o
t
e
r
s
•
E
f
f
e
c
t
i
v
e
D
a
t
e
Po
t
e
n
t
i
a
l
R
e
v
e
n
u
e
*
B
a
s
e
d
o
n
a
n
E
s
t
i
m
a
t
e
d
P
o
p
u
l
a
t
i
o
n
Co
s
t
/
B
e
n
e
f
i
t
A
n
a
l
y si
s
y
•
E
x
p
e
n
d
i
t
u
r
e
s
Ge
n
e
r
a
l
G
o
v
e
r
n
m
e
n
t
Se
r
v
i
c
e
s
–
Ge
n
e
r
a
l
Go
v
e
r
n
m
e
n
t
Se
r
v
i
c
e
s
–
I
n
f
r
a
s
t
r
u
c
t
u
r
e
i
m
p
r
o
v
e
m
e
n
t
s
–
In
f
r
a
s
t
r
u
c
t
u
r
e
m
a
i
n
t
e
n
a
n
c
e
•
R
e
v
e
n
u
e
–
A
d
V
a
l
o
r
e
m
T
a
x
e
s
O
hl
f
C
t
S
l
T
–
O ne
-
h a lf
C en
t S a l es
T ax
–
S
t
a
t
e
R
e
v
e
n
u
e
S
h
a
r
i
n
g
–
Co
m
m
u
n
i
c
a
t
i
o
n
s
S
e
r
v
i
c
e
T
a
x
Co
m
m
u
n
i
c
a
t
i
o
n
s
Se
r
v
i
c
e
Ta
x
–
F
r
a
n
c
h
i
s
e
T
a
x
Le
v
e
l
o
f
S
e
r
v
i
c
e
S
t
a
n
d
a
r
d
s
•
I
n
f
r
a
s
t
r
u
c
t
u
r
e
–
R
o
a
d
s
–
S
a
n
i
t
a
r
y
S
e
w
e
r
–
S
o
l
i
d
W
a
s
t
e
–
Po
t
a
b
l
e
W
a
t
e
r
–
S
t
o
r
m
w
a
t
e
r
D
r
a
i
n
a
g
e
•
Po
l
i
c
e
(
r
e
s
p
o
n
s
e
t
i
m
e
s
)
•
Po
l
i
c
e
(r
e
s
p
o
n
s
e
ti
m
e
s
)
•
F
i
r
e
(
r
e
s
p
o
n
s
e
t
i
m
e
s
)
•
Pa
r
k
s
a
n
d
R
e
c
r
e
a
t
i
o
n
(
p
e
r
c
a
p
i
t
a
)
Pa
r
k
s
an
d
Re
c
r
e
a
t
i
o
n
(p
e
r
ca
p
i
t
a
)
•
P
u
b
l
i
c
S
c
h
o
o
l
s
•
C
o
d
e
E
n
f
o
r
c
e
m
e
n
t
Ro
a
d
Co
n
d
i
t
i
o
n
s
Co
n
d
i
t
i
o
n
s
Ha
s
s
e
v
e
r
a
l
Ha
s
se
v
e
r
a
l
Su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
Ha
s
m
o
r
e
t
h
a
n
on
e
s
u
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
Ha
s
o
n
e
Ha
s
on
e
su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
Ge
n
e
r
a
l
l
y
m
e
e
t
s
st
a
n
d
a
r
d
s
Ro
a
d
Co
n
d
i
t
i
o
n
s
Co
n
d
i
t
i
o
n
s
Ha
s
s
e
v
e
r
a
l
Su
b
s
t
a
n
d
a
r
d
Su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
Ha
s
m
o
r
e
t
h
a
n
on
e
s
u
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
Ha
s
o
n
e
su
b
s
t
a
n
d
a
r
d
su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
Ge
n
e
r
a
l
l
y
m
e
e
t
s
st
a
n
d
a
r
d
s
Ro
a
d
C
o
n
d
i
t
i
o
n
s
Wa
t
e
r
–
N
o
S
e
r
v
i
c
e
Se
w
e
r
–
N
o
S
e
r
v
i
c
e
Ot
h
e
r
C
o
n
s
i
d
e
r
a
t
i
o
n
s
•
N
o
n
-
c
o
n
f
o
r
m
i
n
g
U
s
e
s
•
N
o
n
-
c
o
n
f
o
r
m
i
n
g
s
t
r
u
c
t
u
r
e
s
•
No
n
-co
n
f
o
r
m
i
n
g
s
i
g
n
a
g
e
No
n
co
n
f
o
r
m
i
n
g
si
g
n
a
g
e
•
W
a
t
e
r
c
r
a
f
t
/
R
V
S
t
o
r
a
g
e
D
e
c
a
l
P
r
o
g
r
a
m
Lk
f
f
t
f
i
t
i
•
L ac
k o
f e
n
f or
c
e
m
e
n
t o
f e
x
i s ti
ng
re
g
u
l
a
t
i
o
n
s
•
M
a
r
k
e
t
i
n
g
A
n
n
e
x
a
t
i
o
n
B
e
n
e
f
i
t
s
Ta
x
e
s
(
P
r
o
p
e
r
t
y
,
Co
m
m
u
n
i
c
a
t
i
o
n
s
&
Ut
i
l
i
t
)
Pa
l
m
B
e
a
c
h
Co
u
n
t
y
Pa
l
m
B
e
a
c
h
Ga
r
d
e
n
s
Di
f
f
e
r
e
n
c
e
Ut
i
l
i
t
y )
Co
u
n
t
y
Ga
r
d
e
n
s
Ad
V
a
l
o
r
e
m
(
W
/
H
o
m
e
s
t
e
a
d
ex
e
m
p
t
i
o
n
)
14
3
.
9
6
9
1
4
3
.
9
6
9
ex
e
m
p
t
i
o
n
)
As
s
e
s
s
e
d
V
a
l
u
e
o
f
h
o
m
e
=
$
1
4
3
,
9
6
9
Di
v
i
d
e
a
s
s
e
s
s
a
b
l
e
v
a
l
u
e
b
y
1
0
0
0
X
1
9
.
5
5
$2
,
8
1
4
.
5
9
X
2
2
.
5
4
$3
,
2
4
5
.
0
6
+$ 430.00
No
n
A
d
V
a
l
o
r
e
m
No
n
Ad
Va
l
o
r
e
m
(S
o
l
i
d
W
a
s
t
e
)
$2
1
8
.
0
0
$
1
0
4
.
0
0
-
$
1
1
4
.
0
0
No
n
-
A
d
V
a
l
o
r
e
m
(N
P
B
C
I
D
)
$3
9
2
.
8
4
$
3
9
2
.
8
4
N
o
d
i
f
f
e
r
e
n
c
e
Co
m
m
u
n
i
c
a
t
i
o
n
s
T
a
x
*
(P
h
o
n
e
(
$
5
0
/
m
o
n
t
h
)
,
C
e
l
l
u
l
a
r
($
5
0
/
m
o
n
t
h
)
&
C
a
b
l
e
($6
0
/
m
o
n
t
h
) B
i
l
l
s
)
To
t
a
l
B
i
l
l
+
T
o
t
a
l
B
i
l
l
X
5%
=
$
9
6
.
0
0
To
t
a
l
B
i
l
l
+
T
o
t
a
l
B
i
l
l
X
1
.
5
%
%
=
$2
8
.
8
0
-$67.20
()
)
Ut
i
l
i
t
y
T
a
x
e
s
*
(E
l
e
c
t
r
i
c
B
i
l
l
$
1
2
5
/
m
o
n
t
h
)
To
t
a
l
B
i
l
l
+
T
o
t
a
l
B
i
l
l
X
10
%
=
$
1
5
0
.
0
0
$0
-
$
1
5
0
.
0
0
*
B
a
s
e
d
o
n
e
s
t
i
m
a
t
e
d
c
o
m
m
u
n
i
c
a
t
i
o
n
s
e
r
v
i
c
e
a
n
d
u
t
i
l
i
t
y
b
i
l
l
s
.
To
t
a
l
$
3
,
6
7
1
.
4
3
$
3
,
7
7
0
.
7
0
+$
9
9
.
0
0
p
e
r
y
e
a
r
+$8.27/month
NO
N
C
O
N
F
O
R
M
I
N
G
U
S
E
S
Th
e
C
i
t
y
w
o
u
l
d
b
e
r
e
q
u
i
r
e
d
t
o
Th
e
Ci
t
y
wo
u
l
d
be
re
q
u
i
r
e
d
to
pr
o
v
i
d
e
z
o
n
i
n
g
f
o
r
A
u
t
o
-
De
a
l
e
r
s
h
i
p
s
A GR
I
C
U
L
T
U
R
E
/
N
U
R
S
E
R
Y
U
S
E
S
Th
e
C
i
t
y
d
o
e
s
Th
e
City does
no
t
h
a
v
e
a
n
Ag
r
i
c
u
l
t
u
r
a
l
o
r
Ru
r
a
l
-
co
m
m
e
r
c
i
a
l
zo
n
i
n
g
d
i
s
t
r
i
c
t
zo
n
i
n
g
district
Nu
r
s
e
r
y
U
s
e
s
NO
N
C
O
N
F
O
R
M
I
N
G
S
I
G
N
A
G
E
No
n
-
C
o
n
f
o
r
m
i
n
g S
i
g na
g e
gg
g
Ty
p
i
c
a
l
R
e
s
i
d
e
n
t
i
a
l
U
n
i
t
T
y
p
e
s
(D
u
p
l
e
x
/
M
u
l
t
i
p
l
e
x
)
(D
u
p
l
e
x
/ Mu
l
t
i
p
l
e
x
)
Si
n
g le
F
a
m
i
l
y H
o
m
e
s
gy
RE
N
T
A
L
S
In
s
t
i
t
u
t
i
o
n
a
l
U
s
e
s
Ex
i
s
t
i
n
g E
a
s
e
m
e
n
t
s
g
Co
d
e
E
n
f
o
r
c
e
m
e
n
t
V
i
o
l
a
t
i
o
n
s
(S
i
g
n
a
g
e
)
(S
i
g
n
a
g
e
)
Co
d
e
E
n
f
o
r
c
e
m
e
n
t
V
i
o
l
a
t
i
o
n
–
Pa
r
k
i
n
g
i
n
R
i
g
h
t
of
Wa
y
Pa
r
k
i
n
g
in
Ri
g
h
t
-of
-Wa
y
Co
d
e
E
n
f
o
r
c
e
m
e
n
t
V
i
o
l
a
t
i
o
n
–
R
V
an
d
B
o
a
t
s
i
n
F
r
o
n
t
Y
a
r
d
an
d
Bo
a
t
s
in
Fr
o
n
t
Ya
r
d
Ty
p
i
c
a
l
R
i
g
h
t
-
o
f
-
W
a
y
w
i
t
h
f
e
w
su
b
s
t
a
n
d
a
r
d
c
o
n
d
i
t
i
o
n
s
su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
Ty
p
i
c
a
l
R
i
g
h
t
-
o
f
-
W
a
y
w
i
t
h
s
o
m
e
su
b
s
t
a
n
d
a
r
d
c
o
n
d
i
t
i
o
n
s
(
n
o
t
i
c
e
t
h
e
su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
(n
o
t
i
c
e
the
us
e
o
f
s
p
e
e
d
b
u
m
p
s
)
Ty
p
i
c
a
l
R
i
g
h
t
-
o
f
-
W
a
y
w
i
t
h
s
o
m
e
su
b
s
t
a
n
d
a
r
d
c
o
n
d
i
t
i
o
n
s
su
b
s
t
a
n
d
a
r
d
co
n
d
i
t
i
o
n
s
No
n
c
o
n
f
o
r
m
i
n
g
R
O
W
-
G
r
a
v
e
l
Ro
a
d
Ro
a
d
Co
d
e
E
n
f
o
r
c
e
m
e
n
t
V
i
o
l
a
t
i
o
n
s
–
Pr
o
p
e
r
t
y
M
a
i
n
t
e
n
a
n
c
e
S
t
a
n
d
a
r
d
s
Pr
o
p
e
r
t
y
Ma
i
n
t
e
n
a
n
c
e
St
a
n
d
a
r
d
s
Co
d
e
E
n
f
o
r
c
e
m
e
n
t
V
i
o
l
a
t
i
o
n
s
Co
d
e
En
f
o
r
c
e
m
e
n
t
Vi
o
l
a
t
i
o
n
s
–
Pr
o
p
e
r
t
y
M
a
i
n
t
e
n
a
n
c
e
S
t
a
n
d
a
r
d
s
/
Il
l
e
g
a
l
U
s
e
s
Ne
w
D
u
p
l
e
x
e
s
A nn
e
x
a
t
i
o
n
•
E
A
R
-
b
a
s
e
d
A
m
e
n
d
m
e
n
t
s
•
C
o
m
p
r
e
h
e
n
s
i
v
e
A
n
n
e
x
a
t
i
o
n
S
t
u
d
y
•
Co
s
t
–
Be
n
e
f
i
t
A
n
a
l
y
s
i
s
Co
s
t
Be
n
e
f
i
t
An
a
l
y
s
i
s
•
P
l
a
n
Qu
e
s
t
i
o
n
s
?
Qu
e
s
t
i
o
n
s
?
CITY OF PALM BEACH GARDENS
MEMORANDUM
1 TO: Mayor and Council
FROM: Ron Ferris, City Manager I SUBJECT: Budget Workshop - March 23,2009
DATE: March 19,2009
As outlined in the Cis Accounting Policies and Procedures Manual, the first phase of the budgetary pmss
consists of the Policy 8 Strategy Phase, which states the following:
"The Council's goals and directives set the tone for the development offhe budget The Council should meet
annually at a retreat or workshop to Mentifyphh, issues and projects that will provide the direction and
framework of the bodget. WMn this general framework, deparbnents identify and fwmulate the more specific
budgetary issues."
Prior to preparing the budget for FY 2009110, staff is requesting direction from Council on the following policy issues:
1. Tax Rate - Is the Council's goal to keep the millage the same; go to roll-back (which will actually be a
roll-fonvard rate); increase to the rate allowed by new tax cap rules; stay at or below the 5 year
projection schedule; or decrease the rate?
2. Reserves - Use reserves for any purposes; use only for capital or onetime expenditures; use a
balanced approach (some for operating and capital), keeping in mind that our reserve balance as of
9/30/2008 was 30.2% of expenditures (the target is 515%)
3. proiects - Are there any major projects desired that are not in the current 5 year plan? If so, what
methods of financing are acceptable?
4. What is the Council's goal regarding salary increases for SElU and general employees? (same as
recently approved fire contract, or something else?)
5. If Council's goals regarding taxes and reserves cannot be met, what areadprograms would they like
reduced? (CIP, parks, general government, public safety, recreation, employee benefits, layoffs, etc.).
6. What programs does Council not want to touch?
7. Are any other feeslcharges acceptable to make up any shortage?
In preparation for the Monday, March 23,2009 budget workshop, please read the attached illustrations, prepared for
discussion purposes only. They are based on the primary assumption that it is desirous to maintain the current
millage rate. Again, departmental impacts are based on the traditional, across-the-board reduction strategy and are
for illustrative purposes only.
Please contact me at your convenience with any questions. Thank you.
FY 2010 BUDGET FACT SHEET
Current and Projected Reserve Balance:
(Projected)
9/30/2008 9/30/2009
Unreserved, Undesignated Fund Balance $ 20,553,558 $ 19,644,613
Balance as %of Expenditures 30.20% 29.90%
Target Balance (15%)
Excess Balance $ 10,343,061 $ 9,800,590
Projected Revenues and Expenditures:
Current Operating 5 Year Plan Roll-back Operating Statutory Operating
Millage Operating Millage Millage Millage
5.25 5.37 5.6267 5.7578
Estimated Revenue $ 66,473,407 $ 67,530,134 $ 69,790,649 $ 70,945,123
Estimated Expenditures (71,110,418) (71,110,418) (71,110,418) (71,110,418
Estimated Shortfall 5 (4,637,011) $ (3,580,284) S (1,319,769) $ (165,295
Estimated Shortfall
#of Full-time employees 64.8 50 18.4 2.:
Assumptions:
1.) Milloge rates shown ore exclusive of o projected debt service rote of ,149
2.) Projected expenditures ore per the Five Yeor Projection, pg. SO, of the City of PB Gardens Operating & Capital,
Improvements Budget FY 2008/2009, and ore bosed on the following ossurnptions:
0.) $2,170,846 capitol outlay, as per the FY 2009/2010 Capitol Improvements Budget
b.) 6% solory increase for PBA employees, as per contract
c.) 3% solory increases for IAFF, SOU, ond general employees
d.) 4% growth factor far operating expenditures
e.) 7% overage increase in insurance costs
3.) Revenues include adjustments to reflect revised projections for Building Permits, investment Earnings,
ond Stote Shored Revenues. To% revenues ore bosed on estimates provided by the Property Appraiser’s Office
/See attached onolvsis reoordino market value decline1
Market Value Decline
Residential
(80% of Total Taxable Value)
Homesteaded Non-Homesteaded
(60% of (40% of
Residential Resid entia 1
Approximately 80% of the parcels located within the City’s boundaries are categorized as
residential properties. Of that 80%, approximately 60% are homesteaded with the
remaining 40% being non-homesteaded. A provision known as “The Recapture Rule”
directs property appraisers to increase assessed values for homesteaded properties, even
when market values are declining, by 3% or the increase in the Consumer Price Index
(CPI), whichever is less.
Commercial (20%
of Total Taxable
Value)
Per John Thomas of the Palm Beach County Property Appraiser’s Office, data collected
through the 3“ quarter suggests that non-homesteaded properties (including condos) may
see property values decline by 12% to 15% and could see values decline as much as 20%.
Weighted
Average
Projected
Commercial Valuations - Data collected through the 3“ quarter suggests that commercial
properties may see values fluctuate from (5%) to 2%.
Taxable Value) Taxable Value)
48% 32% 20%
New Construction
Actual 2008 submitted to County (1/1/08 - 11/30/08) $333,000,000
2009-10 Estimated Budget $200,000,000
Market
Weighted
Market
Adjustment
Adjustment
.l% (20%) (5)%
.05% (6.4%) (1)% (7.35%)**
**Note: The 5 Year Projection schedule adopted in the 2008-09 budget projected (4.00%) growth in
taxable value for the fiscal year 2009-10.