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HomeMy WebLinkAboutAgenda BORB 072717AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT REVIEW BOARD Thursday July 27, 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 June 22 ,2017 VI. REGULAR AGENDA A. ONE CENT SALES SURTAX REVIEW 1. Review expenditures B. BUDGET REVIEW 1. FY 2018 Budget Presentation VII. OLD BUSINESS VIII. NEW BUSINESS IX. COMMENTS BY PUBLIC X. COMMENTS BY THE BOARD XI. ADJOURNMENT Project Accounting- General Ledger ReconciliationFY 2017Project Project Title Original Budget Budget Adjustments Prior Year Expenditures GL Budget 2017 Expenditures Encumbrances Balance One-Cent Sales Surtax Fundrec0214New Soccer Complex- District Park 11,200,000.00 - - 11,200,000.00 - 176,500.00 11,023,500.00 rec0215Baseball complex Expansion 2,500,000.00 - - 2,500,000.00 - - 2,500,000.00 pub0216City Hall expansion 7,020,000.00 - - 7,020,000.00 4,548.67 470,000.00 6,545,451.33 pub0217FS 1 Expansion 100,000.00 - - 100,000.00 3,018.67 40,000.00 56,981.33 pol0218PD Expansion 2,098,305.00 - - 2,098,305.00 4,548.66 164,000.00 1,929,756.34 pub0220New Operations Center 6,697,230.00 - - 6,697,230.00 54,090.00 12,340.00 6,630,800.00 Contingency 319,465.00 319,465.00 312.0900.519.6900 Total 29,935,000.00 - - 29,615,535.00 66,206.00 862,840.00 29,005,954.00 2017 October‐ February No Activity ‐                           October‐ February Total March Consultant Engenuity Group 3,018.67                 City Hall Administrative Complex Survey 3,018.67                 March Total April Consultant Engenuity Group ‐                           City Hall Administrative Complex Survey ‐                           Apirl Total May No activity ‐                           May Total June Consultant GFA International 1,530.00                 Geotechnical analysis testing 1,530.00                 June Total 4,548.67                 Total Expenditures Adjustments ‐ Miscellaneous Expenses that do not  meet Capital Qualifications 4,548.67$                 CIP Amount 2017 City of Palm Beach Gardens CIP Project # pub0216‐ City Hall Expansion (312.0900.519.6900) 1 of 4 2017 October‐ February No Activity ‐                           October‐ February Total March Consultant Engenuity Group 328.33                    City Hall Administrative Complex Survey 328.33                    March Total April Consultant Engenuity Group 2,690.34                 City Hall Administrative Complex Survey 2,690.34                 March Total May No activity ‐                           May Total June No activity ‐                           June Total 3,018.67                 Total Expenditures Adjustments ‐ Miscellaneous Expenses that do not  meet Capital Qualifications 3,018.67$                 CIP Amount 2017 City of Palm Beach Gardens CIP Project # pub0217‐ Fire Station 1 Expansion (312.0900.519.6900) 2 of 4 2017 October‐ March No Activity ‐                           October‐ March Total April Consultant Engenuity Group 3,018.66                 City Hall Administrative Complex Survey 3,018.66                 April Total May No activity ‐                           May Total June Consultant GFA International 1,530.00                 Geotechnical analysis testing 1,530.00                 June Total 4,548.66                 Total Expenditures Adjustments ‐ Miscellaneous Expenses that do not  meet Capital Qualifications 4,548.66$                 CIP Amount 2017 City of Palm Beach Gardens CIP Project # pub0218‐ Adminstration Expansion (312.0900.519.6900) 3 of 4 2017 October‐ March No Activity ‐                           October‐ March Total April Consultant Song & Associate 29,200.00               Design criteria services for Operations 29,200.00               April Total May Consultant Song & Associate 23,360.00               Design criteria services for Operations 23,360.00               May Total June Consultant GFA International 1,530.00                 Geotechnical analysis testing 1,530.00                 June Total 54,090.00               Total Expenditures Adjustments ‐ Miscellaneous Expenses that do not  meet Capital Qualifications 54,090.00$              CIP Amount 2017 City of Palm Beach Gardens CIP Project # pub0220‐ New Operations Center (312.0900.519.6900) 4 of 4 City of Palm Beach Gardens FY 2017/18 Proposed Operating & Capital Improvement Budget Budget Oversight Review Board July 27, 2017 Budget Schedule Maximum operating millage set on 7/13/2017 at 5.55 Proposed Line-item Budget issued on 7/17/2017 BORB review of budget – 7/17- 8/31/2017 BORB to prepare report to Council - August Public Hearings on 9/7/2017 9/25/2017 “Our Vision –A Strategic Plan” Mission Statement G uarantee high quality services which are delivered in a cost effective and timely manner A nticipate and creatively respond to changing needs R etain a well-trained, responsive and courteous City workforce D evelop a sense of community and pride E licit resident involvement in decision making, emphasizing open government N urture the assets and natural resources entrusted to its care S timulate high quality of life and the pursuit of excellence through public-private partnerships City Vision –Strategic Goals Create linkages in the City which connect or gather residents and business owners of different neighborhoods and developments into a single community which provide a sense of community Sense of Community Increase the levels of service for City-provided services and facilities within the urban service area, while maintaining fiscal responsibility Responsive & Fiscally Sound Government Preserve land use patterns and types that currently characterize the City Character of The City Encourage the provision of quality education through world class curriculum to ensure all children are prepared for real world experiences, hold necessary skills for jobs, and continue to pursue knowledge Quality Education Promote economic development in the City through expansion of existing businesses and attraction of new industry Economic Vitality City Vision –Strategic Goals Protect the natural environment through sustainable methods and practices Environmental Stewardship Provide residents opportunities for recreation and leisure activities and other past- time interests Parks and Recreation Protect the City’s character of high quality housing and focus on the maintenance of existing affordable housing Quality and Affordable Housing Promote balanced water resource policies and programs which address water supply needs, flood control, preservation of environmentally sensitive areas and aquifer recharge Water Management Promote logical phasing and timing of new development, consistent with capital improvement plans and budgets Growth Departmental Objectives Mission Statement Strategic Goals Departmental Service Level Objectives Departmental Objectives –Police Department Example 90.0% 92.0% 94.0% 96.0% 4.00 4.30 4.60 4.90 5.20 5.50 2015 Actual 2016 Actual 2017 Target Total response 5.31 5.58 5.4 % Calls Answered Within 10 Seconds 94.9%94.5%94.5% Average Response Times Goal #2 –Responsive and Fiscally Sound Government:To increase the levels of service for City-provided services and facilities within the urban area,while maintaining fiscal responsibility. Service Level Objective:Acquire sufficient personnel,training,and equipment to support the growing needs of the City Performance Measure Description: This objective is measured by tracking the total time from when a call is received until an officer arrives at the scene. It is also measured by the percentage of time a 911 call is answered with ten (10) seconds (Palm Beach County’s criteria for this measurement is 90%). Other Documents Affecting Short-Term and Long-Term Planning Planning Document Purpose Budgetary Impacts Comprehensive Plan Provides long-range goals,objectives and policies concerning future growth of the City, including:future land use;transportation; housing;infrastructure;coastal management;conservation;recreation and open space;capital improvements;public safety;public school facilities;procedures for accomplishing monitoring and evaluation requirements;and economic development. On a long-term basis,the City’s operational and capital budgets increase due to projects identified in the Comprehensive Plan.Property tax revenue is expected to increase as available land is developed.One-time capital expenditures are factored in the Capital Improvement Plan based on streets,facilities,parks and utility infrastructure improvement needs identified in the Plan. Citizen Surveys A survey is conducted every three (3)to five (5)years and focuses on quality of service and policy direction.Specific policy questions help Council and management guide the budget to meet citizens’concerns and needs.The most current survey was completed in 2015,and can be found on the City’s website. Operating and capital budgets increase due to issues and concerns raised in periodic surveys.For a complete discussion of the impacts on the FY 2018 Budget,please see page 2 of the Transmittal Letter. Other Documents Affecting Short-Term and Long-Term Planning Planning Document Purpose Budgetary Impacts Storm water Master Plan Provides a condition assessment,mapping, and seven (7)year plan for the repair/refurbishment of all storm water structures in the City. The General Fund contains an allocation of $500,000 in FY 2018,as well as $500,000 every year in the long- range forecast,to address repairs identified in the Plan. Pavement Master Plan Provides an ongoing inventory,evaluation, and assessment of the City’s roadways and parking lots.Used to prioritize annual resurfacing base on available funding. The Gas Tax Special Revenue Fund provides an allocation of $400,000 for resurfacing of City roads;the General Fund contains $140,000 for repaving of various City parking lots. Facilities Roof Assessment Plan Provides an assessment of the condition of roofs on all City buildings,and a five (5)year plan for their repair and maintenance The General Fund contains an allocation of $353,800 in FY 2018 for roof repairs on various City buildings Other Documents Affecting Short-Term and Long-Term Planning Planning Document Purpose Budgetary Impacts Maintenance, Repair and Operations Plan Provides an assessment of the condition of all City parks and facilities,and a five (5) year plan for their repair and maintenance. The General Fund contains an allocation of $158,330 in FY 2018 for repairs of various City parks and recreation facilities. One-Cent Infrastructure Sales Surtax Capital Improvement Plan Funds capital improvement projects approved by Council to be paid for with the recently enacted One-Cent Infrastructure Sales Surtax that will be collected for a 10- year period. The General Fund contains additional personnel and approximately $400,000 for the first year’s personnel,operating and capital costs of the District Park. The One-Cent Sales Tax Fund contains $3,415,525 for the first year’s debt service payment on the Bond. Capital Improvement Plan Identifies the City’s capital expenditure needs,outlines costs and potential funding sources over a five (5)year period. The FY 2018 budget contains $5,163,150 for various capital expenditures,along with funding of any related additional operational costs. Other Documents Affecting Short-Term and Long-Term Planning Planning Document Purpose Budgetary Impacts Five (5) Year Financial Forecast Projects the City’s General Fund revenues and expenditures over a five (5)year period based on a set of conservative assumptions. Year one (1)of the forecast is the basis for the City’s annual budget.Projections are adjusted each year during the annual budget development,based on service level expectations and current economic factors. Annual Operating and Capital Improvement Budget Functions as the annual financial plan,policy document,operations guide,and communications device for carrying out the City’s Vision to its citizens. Revenues and expenditures required to meet the City’s established goals make up the annual operating and capital improvements budget. Key Initiatives FY 2018 2015 Resident Survey :In 2015,the City Council conducted a resident survey to help determine key strategic focus areas for its budgets.While the results of the survey were extremely positive,as evidenced by the overall satisfaction rating of the quality of City services of 4.28 out of 5.0, there are several areas staff has identified that are addressed in next year’s budget.A summary of these issues,grouped by the corresponding goal,along with the actions proposed in the FY 2018 Budget,is as follows: Key Initiatives FY 2018 Responsive and Fiscally Sound Government: •A significant percentage of residents (13%, +7% points from 2006) would like to see improvements to the police/fire departments •Action Items: •Funding for eight (8) additional Police Officers has been provided in the General Fund due to the growth of the City, including recent annexations. •Funding for two (2) Fire Code Compliance Officers has been added to the General Fund to keep up with the growing number of inspections. •Funding of $1,100,000 has been provided for various capital purchases for the Police and Fire departments in the General Fund. •The Fleet Maintenance Fund includes a lease-purchase financing plan to replace fifteen (15) police vehicles. •Additional funding of $362,000 to continue Fire Department lease-purchase of various fire apparatus. •Full funding of required contributions to Police and Fire Pension Plans. Key Initiatives FY 2018 Responsive and Fiscally Sound Government: •Residents are divided on willingness to pay user-based fees for services in lieu of ad-valorem taxes. More residents prefer paying for services from ad-valorem taxes (42%, +8% points from 2006) rather than user- based fees (38%, +0% points from 2006). •Action Items: •The budget continues to not levy the following user fees: •Utility tax on electric, water, propane and natural gas. •Collection fees for residential curbside solid waste and recycling services. •Storm water assessments. •Fire assessments. •No increase in the Communications Service Tax rate of 3.25%, which is less than the maximum of 5.22%, and which has not changed since 2011. •Mail (55%, +6 points from 2006) is still the preferred method of receiving communication from the City. •Action Item: •Funding has been provided to continue the quarterly Signature City publication. Key Initiatives FY 2018 Parks and Recreation: •Over nine (9) out of ten (10) residents (95%, +5% points from 2006) agree that parks and recreation services the City provides are vital to the community. •Action Items: •Funding for the first full year’s operating costs has been provided in the General Fund for the new Joseph R. Russo Athletic Complex at City Park, which opened in the spring of 2017. •Partial year funding for the new athletic fields and facilities to be constructed on the County-owned District Park property has been provided in the General Fund. These facilities are being constructed using the proceeds from the recently enacted One-Cent Infrastructure Sales Surtax. •Funding for staffing of the new Sandhill Crane Golf Course clubhouse has been provided in the Golf Special Revenue Fund via a contractual arrangement with a temporary staffing firm. •Funding for the Maintenance, Repair and Operations Plan for existing parks and recreation facilities and fields has been provided. Key Initiatives FY 2018 Parks and Recreation: •Over nine (9) out of ten (10) residents (95%, +5% points from 2006) agree that parks and recreation services the City provides are vital to the community. •Action Items: •Funding has been provided for the following recreation capital improvements: •Gardens Park pavilions $375,000 •Burns Road Community Center Modernization 310,000 •District Park equipment/vehicles 211,250 •Riverside Youth Enrichment Center playground equipment 70,000 •Aquatic Complex improvements 50,000 Key Initiatives FY 2018 Environmental Stewardship: •The most popular growth and development direction among residents is for the City to buy and preserve more green space, favored by 79% of residents. •Action Items: •Staff will continue to explore opportunities for purchasing additional land, and will continue growth and development practices that encourage preservation of green space. A good example is the recent approval of the Avenir development, which set aside approximately 50% of the total development as a conservation site. Key Initiatives FY 2018 Economic Vitality: •A significant number of residents (65%) support more bio science project development to support the Scripps Initiative. •Action Items: •The budget sets aside $2.3 million to be used for economic development incentives to attract bio science and technology companies to the City, such as the recent relocation of United Technologies Corporation. Key Initiatives FY 2018 Growth: •Growth and development (16%, -13% points from 2006) and traffic concerns (15%, -11% points from 2006) still outweigh all other responses. •Action Items: •Funding has been provided for any necessary outside consulting services such as mobility, traffic consultation, All Aboard Florida, Quiet Zone, and Tri-Rail studies. FY 2018 Property Valuation FY 2018 $10.9 billion New construction $249 million Increase of 5.37% in existing properties FY 2018 taxable assessment is an increase of 7.84% from prior year $10.1 billion Proposed Millage Rate No change in the operating rate 5.55 Debt rate reduced to .1178 from .1281 Roll -back Rate 5.2671 5.37% greater than roll- back rate Effect of Proposed Rate on Typical Homesteaded Properties Taxable Value (After $50K Exemption) (1) Current 5.6781 Proposed 5.6678 Annual Increase Monthly Increase $200,000 $1,135 $1,163 $28 $2 $300,000 $1,704 $1,742 $38 $3 $400,000 $2,271 $2,320 $49 $4 (1)Increased by Save Our Homes cap of 2.1% (lesser of CPI for previous year or 3%) Effect of Proposed Rate on Typical Non- Homesteaded Properties Taxable Value (Without Exemption) (1) Current 5.6781 Proposed 5.6678 Annual Increase Monthly Increase $200,000 $300,000 $400,000 (1)Increased by average City-wide increase 5.37% Effect of Proposed Rate on Typical Non- Homesteaded Properties Taxable Value (Without Exemption) (1) Current 5.6781 Proposed 5.6678 Annual Increase Monthly Increase $200,000 $1,135 $1,194 $59 $5 $300,000 $1,704 $1,792 $88 $7 $400,000 $2,271 $2,389 $118 $10 (1)Increased by average City-wide increase 5.37% How Much of My Tax Bill Goes to the City? –About 28 cents of every $1 in total property taxes paid goes to the City –Other taxing authorities collect the remainder (PB County, School Board, Health Care District, other special taxing districts) City Other taxing authorities Total Revenues/SourcesAll Funds $150,594,878 Franchise Fees, $5,345,000 User Fees, $22,236,423 Intergovernmental, $10,021,000 Licenses & Permits, $3,999,900 Other Taxes, $3,705,000 Ad Valorem Taxes, $59,199,325 Transfers, $1,374,496 Other, $2,320,296 Impact Fees, $1,720,828 Carryover, $40,672,610 Total Expenditures/UsesAll Funds $150,594,878 Transfers, $1,374,496 Personnel, $70,082,593 Operating, $25,343,875 Capital, $5,163,150 Debt, $8,357,821 Reserves, $40,272,941 Total Revenues/SourcesGeneral Fund $114,347,829 Franchise Fees, $5,345,000 User Fees, $5,312,307 Intergovernmental, $5,998,000 Licenses & Permits, $3,999,900 Other Taxes, $3,705,000 Ad Valorem Taxes, $59,199,325 Transfers, $687,883 Other, $1,371,000 Carryover, $28,729,414 Total Expenditures/UsesGeneral Fund $114,347,829 Transfers, $686,613 Personnel, $56,784,034 Operating, $20,075,585 Capital, $3,855,085 Debt, $4,783,744 Reserves, $28,162,766 Changes in General Fund Revenue and Expenditures Revenues and Sources Ad valorem up from $55.2M to $59.1M Other revenues up from $26.1M to $26.4M Excluding beginning balance, revenues up 5.5% Expenditures and Uses Personnel costs up from $53.3M to $56.8M Operating costs up from $19.2M to $20.1M Excluding reserves, expenditures are up 6.2% Budget Cost Drivers Total Costs Personnel Operating Budget Cost Drivers Total Costs Personnel Operating Personnel Highlights Total Personnel Costs (Salaries, FICA, Retirement, Health/Life, Workers Comp): Total for all funds up $4.8M, or 7.4% ($1.5M, or 2.3%, due to Fire Pension and Health Claim cost increases) Personnel Highlights Pensions: Full funding per actuarial valuations. Total $8.7 million, up from $7.6 million this year ($900 thousand due to Fire Pension.) Positions: Total 515 FT (up 19) Personnel –New Positions Budget includes 19 requested new full-time positions: 8 Police Officers due to western growth and annexations 2 Fire Code Compliance Officers due to substantial increase in activity 4 maintenance positions for District Park Personnel –New Positions Budget includes 19 requested new full-time positions: 2 are existing part-time positions 1 Administrative Specialist III 2 are funded through Youth Enrichment Special Revenue Maintenance, Repair & Operating Costs Facilities: Roof repair/maintenance; painting of buildings; air conditioning, bathroom and plumbing repairs -$586,650 Parking Lots: Resurface various lots throughout City -$140,000 Parks: Irrigation, fencing, netting, sod, court resurfacing, equipment repairs, etc. - $158,330 Maintenance, Repair & Operating Costs Maintenance, Repair & Operating Costs $500,000 for annual storm water repair program $250,000 to for annual canal dredging and maintenance plan Other Highlights No charge for residential curbside garbage or trash collection No electric, water, or natural gas utility service taxes No City storm water assessments No City fire assessments Other Fund Highlights –Special Revenue Funds Gas Tax Special Revenue Fund •Projected Revenue $870,350 •Expenditures: •Street/Sidewalk Repairs 510,000 •Street Lighting 250,000 Golf Special Revenue Fund •Projected Revenues and Sources $3,059,245 •Projected Expenditures 3,130,407 Other Fund Highlights –Special Revenue Funds Recreation Special Revenue Fund •Projected Revenue $4,047,718 •Projected Expenditures 4,457,812 •Reserve Balance 547,344 Other Fund Highlights –Internal Service Funds Self Insured Health Fund •Projected Revenue $8,317,139 •Projected Expenditures 8,317,139 •Reserve Balance 5,865,815 Fleet Maintenance Fund •Projected Revenues $3,008,448 •Projected Expenditures 3,252,404 •Vehicle Replacements 876,665 Other Fund Highlights –Impact Funds Impact Funds •Projected Revenue $1,722,828 •Transfer to General Fund for Burns Road Debt Service 687,833 •Capital Outlay 98,900 ($75,000 from Fire Impact Fund for fire/rescue vehicle lifts due to expansion of Operations Center and $23,900 from Recreation Impact Fund for equipment at new Ironwood Park) Five-Year Financial Forecast Highlights •Maintains operating millage flat at 5.55 through FY 2022 •Debt millage reduced to -0-in FY 2020 •General Obligation debt paid off in FY 2019 •Unassigned Fund Balance maintained at $23.1M •Potential additional $25K exemption is factored beginning in FY 2020 •Budget Stabilization Reserve Balance reduced to $1.4M Five-Year Financial Forecast 5.5000 5.5400 5.5800 5.6200 5.6600 5.7000 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 $0 $5 $10 $15 $20 $25 Reserves (Millions) Unassigned Reserves Budget Stabilization Total Millage Total Millage Rate Summary FY 2017/2018 Budget Provides Spending Plan to Accomplish Following: Provides $500,000 for third phase of storm renovation/repairs; $250,000 for second year of canal maintenance program Provides funding for additional employees to keep up with increasing demand for services Provides funding for PBA, SEIU and IAFF contracts; adjustments for non-union employees Maintains operating tax rate flat at 5.55; reduces debt rate from .1281 to .1178 What’s Next? Public Hearings: September 7 September 25 Budget Oversight Review Board prepares report to Council Budget Oversight Review Board meetings: August 10 August 24 Additional?