HomeMy WebLinkAboutAgenda BORB 081017AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT REVIEW BOARD
Thursday August 10, 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 July 27 ,2017
VI. REGULAR AGENDA
1. Discuss Budget Oversight Review Board Report To Council
VII. OLD BUSINESS
VIII. NEW BUSINESS
IX. COMMENTS BY PUBLIC
X. COMMENTS BY THE BOARD
XI. ADJOURNMENT
City of Palm Beach
Gardens FY 2017/18
Proposed Operating &
Capital Improvement Budget
Budget Oversight Review
Board
August 10, 2017
Budget Oversight Review Board –Report on
One-Cent Infrastructure Sales Tax to Council
Items to Consider
for Report on
Expenditures
Background
Do the expenditures
comply with State
Statutes?
Are they for the purposes
approved by Council?
Budget Oversight Review Board –Report on
One-Cent Infrastructure Sales Tax to Council
Per Section 212.055 of the Florida Statutes, proceeds from the One-Cent
Infrastructure Sales Surtax must be used to finance, plan, and construct
infrastructure
Infrastructure means:“Any fixed capital expenditure
or fixed capital outlay associated with the
construction,reconstruction,or improvement of
public facilities that have a life expectancy of 5 or
more years,any related land acquisition,land
improvement,design,and engineering costs,and all
other professional and related costs required to bring
the public facilities into service.”
The proceeds and any interest may not be used for
the operational expenses of infrastructure.
Budget Oversight Review Board –Report on
Proposed Budget to Council
Example of
Items to
Consider
Proposed Millage
Rate
Levels of
Reserves/Use of
Reserves
Reasonableness of
Revenue and
Expenditure Growth
Reasonableness of
Financial Forecast
Proposed FY 2018 Operating & Capital
Improvement Budget -Summary of Key Points
Growth in Personnel
•Estimated increase in population from 2016 to
2018 is 2,128 (from 51,532 to 53,660), or 4.1%
•Proposed additional full-time positions is 19, or
3.8% (from 496 to 515)
Growth in General Fund Operating
and Capital Expenditures
•General Fund operating and capital expenditures
increased from $81,731,608 in FY 2017 to
$86,185,061 in FY 2018 ($4,453,453, or 5.45%)
•Increase in projected population is 4.1%, plus CPI
for last year of 2.1% = total expected growth of
6.2%
Proposed FY 2018 Operating & Capital
Improvement Budget -Summary of Key Points
Proposed Operating Millage and Use
of Reserves
•At 5.55 rate, $600,000 of Stabilization Reserves
being used next year
•Over 5 years, $1,000,000 of Stabilization
Reserves are proposed to be used
•Projected balance in FY 2022 is $1,400,000
•Although development is strong, FY 2018 new
construction of $250 million ($1,300,000 of new
revenue) does not even cover the increase in Fire
Pension of $900,000 and Health Claims of
$600,000
Planning for Future
•Short-term actions have long-term consequences
•Financial forecast is based on approval of
additional Homestead Exemption of $25,000 in
November, 2018
•Tax reduction to 5.50, absent an increase in later
years, would reduce Stabilization Reserve to zero
and Unassigned Reserve to $21 million from $23
million by 2022
•Operating deficit in 2022 would be $1,400,000
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
Operating Millage 5.55
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
Five-Year Financial Forecast
Operating Millage 5.50
5.5000
5.5400
5.5800
5.6200
5.6600
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
Five-Year Financial Forecast
Operating Millage 5.50 –Tax Increase in FY 2021 to
Restore Reserves
5.5000
5.5400
5.5800
5.6200
5.6600
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
What’s Next?
Public Hearings:
September 7 September 25
Budget Oversight Review Board meetings:
August 24 Additional?
PLEASE PRINT
COMMENTS FROM THE PUBLIC
REQUEST TO ADDRESS CITY BOARD OR COMMITTEE
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Members of the public may address the Board or Committee during the "Comments by the Public" portion of
the agenda and during "Comments by the Public". This request to address to the Board or Committee must be
delivered to City Clerk staff member prior to the commencement of the meeting. The time limit for each
speaker is limited up to three (3) minutes depending on the amount of comment cards submitted.