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?