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Home My WebLink AboutAgenda BORB 062217AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT REVIEW BOARD Thursday June 22, 2017 8:30 AM CITY COUNCIL CHAMBERS I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL: Regular Members Mark Feldmesser Chair Dennis Beran Vice-Chair Mark Schulte Regular Member Andrew Comiter Regular Member David Middleton Regular Member IV. ADDITIONS, DELETIONS, MODIFICATIONS V. APPROVAL OF MINUTES: a. Minutes of May 25, 2017 VI. REGULAR AGENDA A. ONE CENT SALES SURTAX REVIEW 1. Review expenditures B. BUDGET REVIEW 1. Fitch Report 2. FY 2016 Audit 3. Status of FY 2018 Budget Preparation VII. OLD BUSINESS VIII. NEW BUSINESS IX. COMMENTS BY PUBLIC X. COMMENTS BY THE BOARD XI. ADJOURNMENT Budget Oversight Review Board June 22, 2017 Review of One-Cent Infrastructure Sales Surtax Expenditures Fitch Ratings Review Update City Received Affirmation of AAA Rating from Fitch “…reflects the city’s strong operating performance, solid revenue growth prospects that are further enhanced by considerable independent revenue-raising flexibility, solid control over expenditures, conservative budgeting and a low long-term liability burden.” FY 2016 Audit Report Update City ReceivesUnmodified Audit Opinion From Marcum, LLP For Fiscal Year Ended 9/30/2016 Summary of Findings No Management Letter recommendations No adjusting journal entries were proposed No deficiencies in internal control noted No instances of noncompliance with laws, regulations, grants, or contracts were noted City ReceivesUnmodified Audit Opinion From Marcum, LLP For Fiscal Year Ended 9/30/2016 General Fund Financial Highlights Revenues exceeded expenditures by $1.7 million, raising total fund balance to $38.4 million Unassigned fund balance was $23.1 million Revenues increased by $2.9 million, or 3.8% Expenditures, excluding capital, increased by $2.4 million, or 3.3% FY 2018 Budget Preparation Update City Received Distinguished Budget Presentation Award for FY 2017 Budget Budget Preparation Status Property estimate received 5/26 Preparing FY 2018 revenue estimates Reviewing FY 2018 budget requests Estimated FY 2017 revenues & expenditures Estimated FY 2018 available beginning balance FY 2017 Projected General Fund Revenues, Expenditures and Fund Balance $0 $20 $40 $60 $80 $100 10/1/2016 1/1/2017 4/1/2017 7/1/2017 10/1/2017 (Millions) YTD Revenue YTD Expenses Fund Balance $38.4 M Beginning Fund Balance $39.9 M Ending Fund Balance Projected at 9/30/2017: Revenue $82.9MExpenditures $81.4M Projected General Fund Reserves as of 9/30/2017 $39.9 M Ending Fund Balance Unassigned Reserves $23.1M Reserve for Economic Dev. $2.3M Estimated Open PO’s $3.6M Assigned for CIP $7.6M Budget Stabilization $2.5M Reserve for Law Enforcement $800K Projected General Fund Reserves Available for FY 2018 $39.9 M Ending Fund Balance Unassigned Reserves $23.1M Reserve for Economic Dev. $2.3M Estimated Open PO’s $3.6M Assigned for CIP $7.6M Budget Stabilization $2.5M Reserve for Law Enforcement $800K Projected General Fund Reserves Available for FY 2018 $39.9 M Ending Fund Balance Unassigned Reserves $23.1M Reserve for Economic Dev. $2.3M Budget Stabilization $2.5M Reserve for Law Enforcement $800K Projected General Fund Reserves Available for FY 2018 $28.7 M Beg. Available Bal. Unassigned Reserves $23.1M Reserve for Economic Dev. $2.3M Budget Stabilization $2.5M Reserve for Law Enforcement $800K Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation New Construction Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion New Construction Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion New Construction Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction $177 Million Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction $177 Million $247 Million Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction $177 Million $247 Million $70 Million Existing Properties Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction $177 Million $247 Million $70 Million Existing Properties $10.63 Billion Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction $177 Million $247 Million $70 Million Existing Properties $10.63 Billion $10.62 Billion Preliminary Property Value Estimates Staff Estimate Property Appraiser Value Difference Total Estimated Valuation $10.81 Billion $10.87 Billion $60 Million New Construction $177 Million $247 Million $70 Million Existing Properties $10.63 Billion $10.62 Billion -$10 Million Total Increase = 7.65% Equates to ~ $4 M in additional revenue at current tax rate What’s Next? July 1 •Receive final property values from Property Appraiser July 13 •Set tentative millage rates •Can be lowered but not raised during hearings July 17 •Distribute line- item budgets to Council and Budget Oversight Review Board What’s Next? July 17 –August 31 •Budget Oversight Review Board meetings to review/discuss budget proposal Date TBD •Budget Oversight Review Board prepares report to Council September 7 and 25 •Public hearings What’s Next? Review line-item budget format http://www.pbgfl.com/155/Budget Next meeting dates: July 27 August 24 Additional meetings?