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HomeMy WebLinkAboutAgenda BOC 073009AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Thursday July 30, 2009 5:30 PM CITY COUNCIL CHAMBERS I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL : Regular Members L. Marc Cohn Chair VACANT Vice Chair Bernard Pettingill Regular Member Kenneth Menard Regular Member Phillip Woodall Regular Member IV. ADDITIONS, DELETIONS, MODIFICATIONS: V. APPROVAL OF MINUTES: June 25, 2009 VI. ITEMS BY COUNCIL LIAISON: VII. ITEMS BY STAFF LIAISON 1. 2009/2010 Budget Update VIII. OLD BUSINESS IX. NEW BUSINESS X. COMMENTS BY PUBLIC XI. COMMENTS BY THE BOARD XII. ADJORNMENT 1 CITY OF PALMBEACH GARDENS 2 BUDGET OVERSIGHT COMMITTEE 3 REGULAR MEETING 4 JUNE 25,2009 5 6 The regular meeting was called to order at 8:35 a.rn. by Chair L. Marc Cohn. 7 T. CALL TO ORDER 8 II. PLEDGE OF ALLEGIANCE 9 III. ROLL CALL 10 PRESENT: Chair L. Malc Cohn, Bernard Pettingill, Kenneth Menard. 11 ABSENT: Phillip Woodall. 12 ALSO PRESENT: Councilmember', Council Liaison Robert Premuroso; City Manager Ron 13 Ferris; Deputy Finance Administrator, Altemate Staff Liaison Mary Anderson-Pickle. 14 IV. ADDITIONS. DELETIONS. MODIFICATIONS 15 1. Election of Vice Chair. Postponed until the July 23,2009 meeting. T6 V. APPROVAL OF MINUTES 17 Kenneth Menard made a motion for approval of the April23,2009 minutes. 18 Bernard Pettineill seconded. 19 Motion passed 3-0. 20 \II. ITEMS BY COUNCIL LIAISON 2l None. 22 VII. ITEMS BY STAFF LIAISON 23 Deputv Finance Administrator Marv Anderson-Pickle intloduced Citv Manager Ron Ferris 24 who presentecl the 2009-2010 budget critelia, 25 Deputv Finance Administrator Mary Anderson-Pickle presented fhe2009-2010 budget data. 26 VIII. OLD BUSINESS 27 None. 28 IX. NEW BUSINESS 29 Chair Cohn presented a letter fi'om the Citizen Police Academies ICPA) Academv Director 30 Karen Cobb. 31 X. COMMENTS BY THE PUBLIC 32 None. 33 XI. COMMENTS BY THE BOARD 34 None. 35 36 37 (The remainder of this page intentionally left blank.) 38 39 40 4l 42 43 44 45 46 47 48 BUDGET OVERSIGHT COMMITTEE MEETING 06.25.09 PAGE 1 1 XII. ADJOURTIMENT 2 Kenneth Menard made a motion for adjournment. 3 Bernard Pettineiü seconded. 4 Motionpassed,3-0. 5 The meeting adj ourned af 9:25 a.m. The next regular meeting will be held July 23 , 2009 . 6 7 APPROVED: I I 10 l1 t2 I3 14 15 16 rl 18 19 20 21 L. Marc Cohn. Chair 22 23 24 25 26 27 28 29 30 3I 32 JJ 34 35 36 JI 38 39 40 4l 42 43 44 45 46 Kenneth Menard, Committee Membor Phillip A. Woodall, Comniittee,,Member NOTE:These minutes are prepared in compliance with 286.01I F.S. and are not verbatim transcripts of the meeting. A verbatim audio recording is available from the Office of the City Clerk. All referenced attachments on file in the Office of the City Clerk. BUDGET OVERSIGHT COMMITTEE M EETING 06.25.09 Ci t y o f P a l m B e a c h G a r d e n s 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 O v e r s i g h t C o m m i t t e e Fi s c a l Y e a r 2 0 0 9 / 2 0 1 0 Pr o p o s e d O p e r a t i n g a n d Pr o p o s e d O p e r a t i n g a n d Ca p i t a l B u d g e t Ju l y 3 0 , 2 0 0 9 Ba c k g r o u n d Ba c k g r o u n d • At t h e J u n e 1 5 , 2 0 0 9 w o r k s h o p , C o u n c i l d i r e c t e d st a f f t o s u b m i t p r o p o s e d b u d g e t a t a n o p e r a t i n g st a f f t o s u b m i t p r o p o s e d b u d g e t a t a n o p e r a t i n g mi l l a g e o f 5 . 2 5 m i l l s • Si n c e t h a t m e e t i n g , P B C P r o p e r t y A p p r a i s e r Si n c e t h a t m e e t i n g , P B C P r o p e r t y A p p r a i s e r is s u e d f i n a l p r o p e r t y v a l u a t i o n • In c r e a s e d v a l u e s r e s u l t e d i n a pp ro x i m a t e l y pp y $1 5 0 , 0 0 0 a d d i t i o n a l r e v e n u e Su m m a r y o f C h a n g es i n T o t a l P r o p ert y yg p y Va l u a t i o n FY 2 0 0 8 / 0 9 $9 6 3 7 7 9 1 1 2 1 FY 2 0 0 8 / 0 9 To t a l $9 ,63 7 ,79 1 ,12 1 Ma r k e t V a l u e (9 5 0 7 7 0 5 3 7 ) (9 9 % ) Ma r k e t V a l u e (9 5 0 ,77 0 ,53 7 ) (9 .9%) Ne w Ci 21 3 , 3 5 6 , 6 6 2 2 . 2 % C on s t r u c t i on Ne t C h a n g e ( 7 3 7 , 4 1 3 , 8 7 5 ) ( 7 . 7 % ) FY 2 0 0 9 / 1 0 To t a l $8 , 9 0 0 , 3 7 7 , 2 4 6 Bk d B ac k gr o u n d • Co p i e s o f b u d g e t d i s t r i b u t e d t o C o u n c i l a n d Bu d g e t O v e r s i g h t C o m m i t t e e J u l y 9 2 0 0 9 a n d Bu d g e t O v e r s i g h t C o m m i t t e e J u l y 9 , 2 0 0 9 , and pu t o n w e b s i t e • Pr o p o s e d o p e r a t i n g m i l l a g e w a s 5 . 2 5 m i l l s , a n d Pr o p o s e d o p e r a t i n g m i l l a g e w a s 5 . 2 5 m i l l s , a n d de b t s e r v i c e w a s . 1 4 9 ( 5 . 3 9 9 t o t a l ) • A t t h e J u l y 1 6 , 2 0 0 9 C o u n c i l m e e t i n g, C o u n c i l y, 9 g , vo t e d t o s e t t h e t e n t a t i v e m a x i m u m o p e r a t i n g mi l l a g e a t 5 . 3 9 , a n d d e b t s e r v i c e a t . 1 4 9 ( 5 . 5 3 9 l) l i to t a l) 2 . 7 % t o t a l i nc r e a s e S U M M A R Y O F A L L F U N D S R E V E N U E S / S O U R C E S A N D E X P E N D I T U R E S / U S E S B E G I N N I N G E N D I N G F U N D B A L A N C E R E V E N U E S E X P E N D I T U R E S B A L A N C E G E N E R A L F U N D 2 0 , 2 5 5 , 7 3 1 $ 6 5 , 4 4 3 , 6 2 0 $ 6 6 , 6 9 7 , 3 4 5 $ 1 9 , 0 0 2 , 0 0 6 $ S P E C I A L R E V E N U E F U N D S G a s T a x 7 8 4 , 4 4 1 6 6 1 , 1 9 1 7 8 9 , 0 0 0 6 5 6 , 6 3 2 R e c r e a t i o n 8 3 8 , 6 5 0 2 , 9 1 2 , 7 6 1 2 , 8 9 0 , 3 4 0 8 6 1 , 0 7 1 G o l f 2 5 6 , 1 0 1 1 , 5 0 4 , 3 6 0 1 , 4 8 9 , 6 3 4 2 7 0 , 8 2 7 P o l i c e T r a i n i n g / G r a n t s 3 6 , 0 1 2 2 5 , 0 0 0 1 4 , 0 0 0 4 7 , 0 1 2 T O T A L 1, 9 1 5 , 2 0 4 $ 5 , 1 0 3 , 3 1 2 $ 5 , 1 8 2 , 9 7 4 $ 1 , 8 3 5 , 5 4 2 $ I N T E R N A L S E R V I C E F U N D S F l e e t M a i n t e n a n c e 2 , 1 2 7 , 1 7 6 2 , 2 8 0 , 1 3 8 2 , 1 6 8 , 9 7 8 2 , 2 3 8 , 3 3 6 S l f I F d 8 7 8 0 4 8 6 2 5 6 2 7 7 5 7 0 3 0 2 2 1 4 3 1 3 0 3 Total Projected S e lf -I n s u r a n c e F u n d 8 7 8 , 0 4 8 6 , 2 5 6 , 27 7 5 , 7 0 3 , 0 2 2 1 , 43 1 , 3 0 3 T O T A L 3, 0 0 5 , 2 2 4 $ 8 , 5 3 6 , 4 1 5 $ 7 , 8 7 2 , 0 0 0 $ 3 , 6 6 9 , 6 3 9 $ C A P I T A L P R O J E C T F U N D S R e c r e a t i o n I m p a c t F e e 3 6 1 6 6 8 4 4 2 8 0 7 8 0 0 0 0 0 4 4 7 5 Budget –A ll Funds $1 1 0 , 2 1 8 , 4 0 2 R e c r e a t i o n Im p a c t F e e 3 6 1 , 6 6 8 4 4 2 , 80 7 8 0 0 , 0 0 0 4 , 4 7 5 P o l i c e I m p a c t F e e 4 0 1 , 8 4 5 3 9 , 6 9 8 - 4 4 1 , 5 4 3 F i r e I m p a c t F e e 1 2 9 , 0 1 7 1 1 5 , 7 4 6 1 2 0 , 0 0 0 1 2 4 , 7 6 3 R o a d I m p a c t F e e 2 , 0 2 9 , 2 1 3 3 3 0 , 3 4 9 6 9 1 , 6 7 8 1 , 6 6 7 , 8 8 4 A r t I m p a c t F e e - - - - P G A F l y o v e r C a p i t a l P r o j e c t 2 2 3 , 8 3 5 9 1 1 , 1 8 7 6 2 2 , 5 6 3 5 1 2 , 4 5 9 B u r n s R o a d C a p i t a l P r o j e c t 2 8 1 8 5 3 6 9 1 6 7 8 6 9 1 6 7 8 28 1 8 5 3 B u r n s R o a d C a p i t a l P r o j e c t 2 8 1 , 8 5 3 6 9 1 , 67 8 6 9 1 , 6 7 8 28 1 , 8 5 3 T O T A L 3, 4 2 7 , 4 3 1 $ 2 , 5 3 1 , 4 6 5 $ 2 , 9 2 5 , 9 1 9 $ 3 , 0 3 2 , 9 7 7 $ G R A N D T O T A L 2 8 , 6 0 3 , 5 9 0 $ 8 1 , 6 1 4 , 8 1 2 $ 8 2 , 6 7 8 , 2 3 8 $ 2 7 , 5 4 0 , 1 6 4 $ Fi v e Y e a r F o r e c a s t Fi v e Y e a r F o r e c a s t 20 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 RE V E N U E S / O T H E R F I N A N C I N G S O U R C E S Ta x e s Ad V a l o r e m T a x e s 4 6 , 8 4 7 , 4 9 2 4 5 , 8 7 5 , 4 9 0 4 7 , 9 3 3 , 1 5 2 5 0 , 7 0 3 , 0 9 1 5 3 , 6 3 5 , 0 2 5 Lo c a l B u s i n e s s T a x e s 1 , 5 6 9 , 4 6 9 1 , 6 1 6 , 5 5 3 1 , 6 6 5 , 0 5 0 1 , 7 1 5 , 0 0 1 1 , 7 6 6 , 4 5 1 Ut i l i t y T a x e s 1 , 0 6 9 , 2 1 6 1 , 1 0 1 , 2 9 3 1 , 1 3 4 , 3 3 1 1 , 1 6 8 , 3 6 1 1 , 2 0 3 , 4 1 2 Fr a n c h i s e F e e s 6 , 0 7 5 , 9 9 9 6 , 2 5 8 , 2 7 9 6 , 4 4 6 , 0 2 7 6 , 6 3 9 , 4 0 8 6 , 8 3 8 , 5 9 1 Li c e n s e s a n d P e r m i t s 1 , 4 1 1 , 1 0 7 1 , 4 5 3 , 4 4 0 1 , 4 9 7 , 0 4 3 1 , 5 4 1 , 9 5 4 1 , 5 8 8 , 2 1 3 In t e r g o v e r n m e n t a l 4 , 3 4 1 , 0 9 9 4 , 4 2 7 , 9 2 1 4 , 5 1 6 , 4 8 0 4 , 6 0 6 , 8 0 9 4 , 6 9 8 , 9 4 6 Ch a r g e s f o r S e r v i c e s 1 , 9 7 0 , 7 6 9 2 , 0 2 9 , 8 9 2 2 , 0 9 0 , 7 8 9 2 , 1 5 3 , 5 1 2 2 , 2 1 8 , 1 1 8 Fi n e s a n d F o r f e i t u r e s 4 4 3 , 2 8 1 4 5 6 , 5 7 9 4 7 0 , 2 7 6 4 8 4 , 3 8 5 4 9 8 , 9 1 6 In v e s t m e n t I n c o m e 9 2 2 , 3 9 4 9 5 0 , 0 6 6 9 7 8 , 5 6 8 1 , 0 0 7 , 9 2 5 1 , 0 3 8 , 1 6 3 Mi s c e l l a n e o u s 6 9 0 , 0 3 2 7 1 0 , 7 3 3 7 3 2 , 0 5 5 7 5 4 , 0 1 7 7 7 6 , 6 3 7 Ot h e r F i n a n c i n g S o u r c e s 1 0 2 , 7 6 2 1 0 5 , 8 4 5 1 0 9 , 0 2 0 1 1 2 , 2 9 1 1 1 5 , 6 6 0 65 , 4 4 3 , 6 2 0 $ 6 4 , 9 8 6 , 0 9 1 $ 6 7 , 5 7 2 , 7 9 2 $ 7 0 , 8 8 6 , 7 5 5 $ 7 4 , 3 7 8 , 1 3 1 $ To t a l R e v e n u e a n d O t h e r F i n a n c i n g S o u r c e s Ge n e r a l G o v e r n m e n t 1 4 , 7 4 4 , 4 1 8 1 5 , 0 3 1 , 3 1 2 1 5 , 3 3 3 , 2 1 9 1 5 , 6 4 9 , 4 1 2 1 5 , 9 8 1 , 2 3 3 Pu b l i c S a f e t y 3 9 , 0 1 8 , 8 0 5 3 9 , 7 6 6 , 8 9 6 4 0 , 0 9 9 , 5 9 7 4 0 , 4 5 0 , 8 8 5 4 0 , 8 2 1 , 9 2 6 P h y s i c a l E n v i r o n m e n t 3 , 8 2 9 , 0 9 1 3 , 8 8 1 , 9 1 5 3 , 9 3 7 , 2 0 2 3 , 9 9 5 , 0 9 5 4 , 0 5 5 , 7 4 4 Cu l t u r e / R e c r e a t i o n 4 , 5 5 0 , 0 7 4 4 , 6 0 8 , 4 8 0 4 , 6 6 9 , 1 0 1 4 , 7 3 2 , 4 8 5 4 , 8 9 8 , 7 9 1 E X P E N D I T U R E S / O T H E R F I N A N C I N G U S E S Ca p i t a l O u t l a y 6 5 3 , 5 7 6 1 , 5 2 0 , 7 5 0 1 , 1 1 4 , 7 0 0 1 , 7 0 6 , 0 8 8 3 , 9 8 6 , 0 0 0 De b t S e r v i c e 3 , 2 7 6 , 3 8 2 3 , 2 7 2 , 6 5 8 3 , 2 6 5 , 1 6 2 3 , 4 4 2 , 1 0 5 2 , 8 6 1 , 9 3 8 Op e r a t i n g T r a n s f e r s 6 2 5 , 0 0 0 6 3 7 , 5 0 0 6 5 0 , 2 5 0 6 6 3 , 2 5 5 6 7 6 , 5 2 0 66 , 6 9 7 , 3 4 6 $ 6 8 , 7 1 9 , 5 1 1 $ 6 9 , 0 6 9 , 2 3 1 $ 7 0 , 6 3 9 , 3 2 5 $ 7 3 , 2 8 2 , 1 5 3 $ To t a l E x p e n d i t u r e s a n d O t h e r F i n a n c i n g U s e s Ex c e s s R e v e n u e s ( E x p e n d i t u r e s ) ( 1 , 2 5 3 , 7 2 6 ) ( 3 , 7 3 3 , 4 2 0 ) ( 1 , 4 9 6 , 4 3 9 ) 2 4 7 , 4 3 0 1 , 0 9 5 , 9 7 8 Un d e s i g n a t e d F u n d B a l a n c e - B e g i n n i n g 2 0 , 3 9 4 , 2 7 3 1 9 , 1 4 0 , 5 4 7 1 5 , 4 0 7 , 1 2 7 1 3 , 9 1 0 , 6 8 8 1 4 , 1 5 8 , 1 1 8 Un d e s i g n a t e d F u n d B a l a n c e - E n d i n g 1 9 , 1 4 0 , 5 4 7 1 5 , 4 0 7 , 1 2 7 1 3 , 9 1 0 , 6 8 8 1 4 , 1 5 8 , 1 1 8 1 5 , 2 5 4 , 0 9 6 Fu n d B a l a n c e % o f E x p e n d i t u r e s 2 8 . 7 0 % 2 2 . 4 2 % 2 0 . 1 4 % 2 0 . 0 4 % 2 0 . 8 2 % Tr i m C a l c u l a t i o n 20 0 9 / 1 0 V a l u e s Fo r m D R - 4 2 0 C a l c u l a t i o n s 1 C u r r e n t Y e a r T a x a b l e R e a l P r o p e r t y 8 , 4 7 5 , 5 3 2 , 5 2 2 2 Cu r r e n t Y e a r T a x a b l e P e r s o n a l P r o p e r t y 42 2 5 7 9 3 3 3 2 Cu r r e n t Ye a r Ta x a b l e Pe r s o n a l Pr o p e r t y 42 2 ,57 9 ,33 3 3 C u r r e n t Y e a r C e n t r a l l y A s s e s s e d 2 , 2 6 5 , 3 9 1 4 C u r r e n t Y e a r G r o s s T a x a b l e 8 , 9 0 0 , 3 7 7 , 2 4 6 5 N e t N e w T a x a b l e 2 1 3 , 3 5 6 , 6 6 2 6 C u r r e n t Y e a r A d j u s t e d T a x V a l u e 8 , 6 8 7 , 0 2 0 , 5 8 4 7 P r i o r Y e a r F i n a l G r o s s T a x a b l e V a l u e 9 , 6 3 7 , 7 9 1 , 1 2 1 8 Nu m b e r o f D R 4 2 0 T I F ' s a t t a c h e d 0 8 Nu m b e r of DR -42 0 T I F ' s a t t a c h e d 0 9 D e b t m i l l a g e o r m i l l a g e v o t e d f o r < 2 y r s ? Y 10 P r i o r Y e a r M i l l a g e 5 . 2 5 0 0 11 P r i o r Y e a r A d V a l o r e m 5 0 , 5 9 8 , 4 0 3 12 C R A o b l i g a t i o n f r o m D R - 4 2 0 T I F 0 13 Ad j t d P i Y A d l P d 50 5 9 8 4 0 3 13 Ad j us t e d P r i or Y ea r Ad v a l or e m P ro c e e ds 50 ,59 8 ,40 3 14 D e d i c a t e d I n c r e m e n t V a l u e D R - 4 2 0 T I F 0 15 A d j u s t e d C u r r e n t Y e a r T a x a b l e V a l u e 8 , 6 8 7 , 0 2 0 , 5 8 4 16 C u r r e n t Y e a r R o l l e d B a c k 5 . 8 2 4 6 17 C u r r e n t Y e a r P r o p o s e d 5 . 3 9 0 0 18 T t d t ( l i 1 8 l i 4 / 1 0 0 0 ) 47 9 7 3 0 3 3 18 T ax e s a t p r o p o s e d r a t e (l i ne 18 x li ne 4/ 1 0 0 0 ) 47 ,97 3 ,03 3 19 T y p e o f a u t h o r i t y M u n i c i p a l i t y 20 A p p l i c a b l e a u t h o r i t y P ri n c i p a l A u t h o r i t y 21 M i l l a g e l e v i e d i n m o r e t h a n 1 c ou n t y ? N 22 T o t a l A d j u s t e d P r i o r Y r t a x e s D R - 4 2 0 l i n e 1 3 5 0 , 5 9 8 , 4 0 3 23 Ct t l l b k t 58 2 4 6 23 C ur r e n t y ea r a gg re g a t e r o ll b ac k r a t e 5 .82 4 6 24 C u r r e n t y e a r a g g r e g a t e r o l l b a c k t a x e s 5 1 , 8 4 1 , 1 2 0 25 T o t a l o f a l l o p e r a t i n g t a x e s ( l i n e 1 8 , a l l D R 4 2 0 ) 4 7 , 9 7 3 , 0 3 3 26 P r o p o s e d a g g r e g a t e r a t e ( l i n e 2 5 /l i n e 4 X 1 0 0 0 ) 5 . 3 9 0 0 27 % C h a n g e O v e r R o l l e d B a c k ( l i n e 2 6 / l i n e 2 3 - 1 ) - 7 . 4 6 1 % Ef f e c t o n T y p i c a l H o m e o w n e r – 5. 2 5 O p e r a t i n g Ef f e c t o n T y p i c a l H o m e o w n e r 5. 2 5 O p e r a t i n g Ra t e & . 1 4 9 D e b t ( 5 . 3 9 9 t o t a l ) Ho m e s t e a d e d Ta x a b l e V a l u e 5. 3 9 9 0 A n n u a l %o f T o t a l Ta x a b l e Va l u e 5. 3 9 9 0 A n n u a l % of To t a l .1 % i n c r e a s e C u r r e n t R a t e P r o p o s e d R a t e I n c r e a s e P r o p e r t i e s i n (A f t e r $ 5 0 K E x e m p ) 5 . 3 9 9 9 5 . 3 9 9 ( D e c r e a s e ) C i t y o f P B G $2 0 0 , 0 0 0 t o $2 0 0 , 2 0 0 $ 1 , 0 7 9 . 9 8 $ 1 , 0 8 0 . 8 8 $ 0 . 9 0 6 0 . 5 5 % $3 0 0 , 0 0 0 t o $3 0 0 , 3 0 0 $ 1 , 6 1 9 . 9 7 $ 1 , 6 2 1 . 3 2 $ 1 . 3 5 1 4 . 0 3 % $4 0 0 , 0 0 0 t o $4 0 0 , 4 0 0 $ 2 , 1 5 9 . 9 6 $ 2 , 1 6 1 . 7 6 $ 1 . 8 0 8 . 2 5 % 82 8 3 % 82 .83 % No n - H o m s t e a d e d Ta x a b l e V a l u e 9. 9 % d e c r e a s e ( a v g . Ci t y - w i d e ) $2 0 0 , 0 0 0 t o $1 8 0 2 0 0 $1 0 7 9 9 8 $9 7 2 9 0 - $ 1 0 7 0 8 49 4 9 % $1 8 0 ,20 0 $1 ,07 9 .98 $9 7 2 .90 - $ 1 0 7 .08 49 .49 % $3 0 0 , 0 0 0 t o $2 7 0 , 3 0 0 $ 1 , 6 1 9 . 9 7 $ 1 , 4 5 9 . 3 5 - $ 1 6 0 . 6 2 1 9 . 0 3 % $4 0 0 , 0 0 0 t o $3 6 0 4 0 0 $2 1 5 9 9 6 $1 9 4 5 8 0 -$2 1 4 1 6 9 7 8 % $3 6 0 ,40 0 $2 ,15 9 .96 $1 ,94 5 .80 $2 1 4 .16 9 .78 % 78 . 3 0 % Ef f e c t o n T y p i c a l H o m e o w n e r – 5. 3 9 O p e r a t i n g Ef f e c t o n T y p i c a l H o m e o w n e r 5. 3 9 O p e r a t i n g Ra t e & . 1 4 9 D e b t ( 5 . 5 3 9 t o t a l ) Ho m e s t e a d e d Ta x a b l e V a l u e 5. 5 3 9 0 A n n u a l %o f T o t a l Ta x a b l e Va l u e 5. 5 3 9 0 A n n u a l % of To t a l .1 % i n c r e a s e C u r r e n t R a t e P r o p o s e d R a t e I n c r e a s e P r o p e r t i e s i n (A f t e r $ 5 0 K E x e m p ) 5 . 3 9 9 9 5 . 5 3 9 ( D e c r e a s e ) C i t y o f P B G $2 0 0 , 0 0 0 t o $2 0 0 , 2 0 0 $ 1 , 0 7 9 . 9 8 $ 1 , 1 0 8 . 9 1 $ 2 8 . 9 3 6 0 . 5 5 % $3 0 0 , 0 0 0 t o $3 0 0 , 3 0 0 $ 1 , 6 1 9 . 9 7 $ 1 , 6 6 3 . 3 6 $ 4 3 . 3 9 1 4 . 0 3 % $4 0 0 , 0 0 0 t o $4 0 0 , 4 0 0 $ 2 , 1 5 9 . 9 6 $ 2 , 2 1 7 . 8 2 $ 5 7 . 8 6 8 . 2 5 % 82 8 3 % 82 .83 % No n - H o m s t e a d e d Ta x a b l e V a l u e 9. 9 % d e c r e a s e ( a v g . Ci t y - w i d e ) $2 0 0 , 0 0 0 t o $1 8 0 2 0 0 $1 0 7 9 9 8 $9 9 8 1 3 - $ 8 1 8 5 49 4 9 % $1 8 0 ,20 0 $1 ,07 9 .98 $9 9 8 .13 - $ 8 1 .85 49 .49 % $3 0 0 , 0 0 0 t o $2 7 0 , 3 0 0 $ 1 , 6 1 9 . 9 7 $ 1 , 4 9 7 . 1 9 - $ 1 2 2 . 7 8 1 9 . 0 3 % $4 0 0 , 0 0 0 t o $3 6 0 4 0 0 $2 1 5 9 9 6 $1 9 9 6 2 6 -$1 6 3 7 0 9 7 8 % $3 6 0 ,40 0 $2 ,15 9 .96 $1 ,99 6 .26 $1 6 3 .70 9 .78 % 78 . 3 0 % To t a l C o s t C o m p ar i s o n – B a s e d o n a $30 0 ,00 0 p $, Ho m e , L e s s $ 5 0 , 0 0 0 E x e m p t i o n Ci t y Ci t y Ot h e r Ut i l i t y CS T So l i d St o r m Total Ci t y Ci t y Ad Va l o r e m Ot h e r Ad Va l o r e m Ut i l i t y Ta x CS T So l i d Wa s t e St o r m Wa t e r /F i r e Total P. B . G a r d e n s 1 , 3 5 0 3 , 6 8 5 0 3 6 0 0 5 , 0 7 1 Bo c a R a t o n 8 2 6 3 , 7 5 3 5 8 2 1 3 0 0 3 0 5 , 3 2 1 Ju p i t e r 6 7 1 4 , 2 8 2 3 4 2 1 2 5 1 1 8 4 9 5 , 5 8 7 Ro y a l P B 4 9 3 4 , 4 2 3 5 5 8 1 2 5 9 2 0 5 , 6 9 1 We l l i n g t o n 5 8 5 4 , 4 2 3 4 2 0 1 2 5 1 4 6 1 6 2 5 , 8 6 1 N. P a l m B e a c h 1 , 6 7 4 3 , 5 5 0 4 3 8 1 2 5 1 0 4 0 5 , 8 9 1 Ri v i e r a B e a c h 2 , 1 0 7 3 , 5 5 0 4 9 8 1 2 5 1 5 1 0 6 , 4 3 1 W. P a l m B e a c h 1 , 9 6 9 3 , 5 5 0 6 1 8 1 3 0 1 9 2 2 5 6 , 4 8 4 Su m m a r y o f I m p a c t s • To t a l o f 2 0 p o s i t i o n s e l i m i n a t e d ( 1 8 G F , 2 ot h e r f u n d s ) ; 5 0 o v e r 3 y e a r s ( 9 . 7 % ) o f t o t a l ; ot h e r f u n d s ) ; 5 0 o v e r 3 y e a r s ( 9 . 7 % ) o f t o t a l ; 4 p o s i t i o n s t r a n s f e r r e d t o s p e c i a l r e v e n u e fu n d s • 6% a n d 3 % i n c r e a s e s f o r P o l i c e a n d F i r e • 6% a n d 3 % i n c r e a s e s f o r P o l i c e a n d F i r e , re s p e c t i v e l y , p e r c o n t r a c t s • 0% f o r g en e r a l a n d S E I U e m p lo y ee s gp y • 10 % i n c r e a s e i n c o s t f o r f a m i l y h e a l t h co v e r a g e • Re d u c t i o n o f 2 0 0 0 p a r t ti m e h o u r s 2 7 0 0 0 • Re d u c t i o n o f 2 ,00 0 p a r t -ti m e h o u r s , 2 7 ,000 ov e r 3 y e a r s Su m m a r y o f I m p a c t s • Re d u c t i o n s i n P r o f e s s i o n a l S e r v i c e s ($ 1 8 8 0 0 0 ) ; O v e r t i m e ( $ 1 2 3 0 0 0 ) ; P a r t -time ($ 1 8 8 ,00 0 ) ; O v e r t i m e ( $ 1 2 3 ,00 0 ) ; P a r t -time Sa l a r i e s ( $ 2 2 , 0 0 0 ) ; a n d Tr a v e l /Se m i n a r s /Tr a i n i n g ( $ 2 1 1 ,00 0 ) // g , • El i m i n a t e d m o s t C i t y c e l l p h o n e s , im p l e m e n t e d a s t i p e n d p r o g r a m f o r l i d t l l h em p l oy e e s re q u i re d t o ca r r y a ce ll p h on e , sa v i n g a b o u t $ 2 5 , 0 0 0 a n n u a l l y • El i m i n a t e d $ 1 4 M f r o m C a p i t a l • El i m i n a t e d $ 1 .4M f r o m C a p i t a l Im p r o v e m e n t s P r o g r a m Wh a t ’ s N e x t ? • Au g u s t 4 th –1 7 th : B u d g e t m e e t i n g s w i t h i H O A ’ va r i ou s H O A ’ s • Bu d g e t O v e r s i g h t C o m m i t t e e t o m a k e di C i l re c o m m e n d at i on to C ou n c il • Se p t e m b e r 1 0 th : F i r s t p u b l i c h e a r i n g • Se p t e m b e r 2 4 th : S e c o n d a n d f i n a l p u b l i c he a r i n g Re c o m m e n d a t i o n t o C o u n c i l • Pr o p o s e d m i l l a g e r a t e – 5 . 2 5 , 5 . 3 9 , o r th i l ? so m e th i ng e l se ? • Us e o f R e s e r v e s f o r O p e r a t i n g – s h o u l d u s e l i h d b l es s , mo r e , or i s t h e pr o p o s e d us e a b out ri g h t ? • Ca p i t a l P r o j e c t s – d e f e r a s m u c h a s po s s i b l e a n d s a v e R e s e r v e s , o r u s e m o r e o f dd Re s e r v e s t o r e s t o r e s o m e n e e d e d p r o j e c t s ? Re c o m m e n d a t i o n t o C o u n c i l • Ot h e r R e v e n u e s o u r c e s – c o n t i n u e t o r e l y ma i n l y o n a d v a l o r e m t a x e s o r l o o k a t ma i n l y o n a d v a l o r e m t a x e s , o r l o o k a t ot h e r a v a i l a b l e r e v e n u e s , e . g . , g a r b a g e as s e s s m e n t s , u t i l i t y t a x e s , c o m m u n i c a t i o n as s e s s m e n t s , u t i l i t y t a x e s , c o m m u n i c a t i o n se r v i c e t a x e s ? • Co n t r o l l i n g e x p en d i t u r e s – p en s i o n , gp p, co l l e c t i v e b a r g a i n i n g a g r e e m e n t s • Fo r m a t o f r e p or t – w ri t t e n o r o r a l p pr e s e n t a t i o n ? Qu e s t i o n s ? Re v e n u e a n d E x p e n d i t u r e A s s u m p t i o n s Ex p e n d i t u r e A s s u m p t i o n s 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 R e v e n u e A s s u m p t i o n s 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 Co u n c i l S a l a r y 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % G r o w t h i n T a x a b l e V a l u e - 9 . 9 0 % - 7 . 0 0 % 1 . 0 0 % 2 . 0 0 % 3 . 0 0 % Ge n e r a l S a l a r y 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % G r o w t h i n P e r s o n a l P r o p e r t y 6 . 0 0 % 1 . 0 0 % 1 . 0 0 % 2 . 0 0 % 3 . 0 0 % SE I U U n i o n S a l a r i e s 00 0 % 0 0 0 % 0 0 0 % 0 0 0 % 0 0 0 % Gr o w t h i n C e n t r a l l y A s s e s s e d 30 0 % 3 0 0 % 3 0 0 % 300%300% SE I U Un i o n Sa l a r i e s 0 .00 % 0 .00 % 0 .00 % 0 .00 % 0 .00 % Gr o w t h in Ce n t r a l l y As s e s s e d 3 .00 % 3 .00 % 3 .00 % 3 .00%3 .00% PB A U n i o n S a l a r i e s 6 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % N e w C o n s t r u c t i o n V a l u e 2 1 3 , 3 5 6 , 6 6 2 $ 1 5 0 , 0 0 0 , 0 0 0 $ 1 5 0 , 0 0 0 , 0 0 0 $ 1 5 0 , 0 0 0 , 0 0 0 $ 150,000,000 $ IA F F U n i o n S a l a r i e s 3 . 0 0 % 3 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % O p e r a t i n g M i l l a g e R a t e 5 . 2 5 0 0 5 . 5 0 0 0 5 . 6 0 0 0 5 . 7 2 0 0 5 . 7 9 0 0 He a l t h I n s u r a n c e 6 . 5 0 % 6 . 5 0 % 6 . 5 0 % 6 . 5 0 % 6 . 5 0 % D e b t M i l l a g e R a t e 0 . 1 4 9 0 0 . 1 7 6 3 0 . 1 7 0 9 0 . 1 6 5 2 0 . 1 5 8 2 Wo r k e r s C o m p I n s u r a n c e 7 . 5 0 % 7 . 5 0 % 7 . 5 0 % 7 . 5 0 % 7 . 5 0 % T o t a l M i l l a g e R a t e 5 . 39 9 0 5 . 6 7 6 3 5 . 7 7 0 9 5 . 8 8 5 2 5 . 9 4 8 2 Op e r a t i n g 2 . 0 0 % 2 . 0 0 % 2 . 0 0 % 2 . 0 0 % 2 . 0 0 % I n t e r g o v e r n m e n t a l 2 . 0 0 % 2 . 0 0 % 2 . 0 0 % 2 . 0 0 % 2 . 0 0 % PC I n s . 7 . 5 0 % 7 . 5 0 % 7 . 5 0 % 7 . 5 0 % 7 . 5 0 % I n t e r e s t I n c o m e 2 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % BU D G E T C O U N C I L O t h e r R e v e n u e s 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % 3 . 0 0 % Ma x i m u m O p e r a t i n g M i l l a g e R a t e 5 . 97 0 2 5 . 7 4 9 1 5 . 6 4 3 2 5 . 7 2 4 6 5 . 7 9 0 5 20 , 0 0 0 , 0 0 0   $9 0 , 0 0 0 , 0 0 0   Un r e s e r v e d F u n d B a l a n c e Un r e s e r v e d F u n d B a l a n c e a s a % o f To t a l E x p e n d i t u r e s Re f r e s h D a t a 8, 0 0 0 , 0 0 0   12 , 0 0 0 , 0 0 0   16 , 0 0 0 , 0 0 0   $7 0 , 0 0 0 , 0 0 0   $8 0 , 0 0 0 , 0 0 0   12 , 0 0 0 , 0 0 0   16 , 0 0 0 , 0 0 0   20 , 0 0 0 , 0 0 0   15 0 0 % 20 . 0 0 % 25 . 0 0 % 30 . 0 0 % To t a l Expenditures ‐4, 0 0 0 , 0 0 0   $5 0 , 0 0 0 , 0 0 0   $6 0 , 0 0 0 , 0 0 0   20 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 R Ed i Ud Fd Bl ‐ 4, 0 0 0 , 0 0 0   8, 0 0 0 , 0 0 0   0. 0 0 % 5. 0 0 % 10 . 0 0 % 15 .00 % R ev e n u e E xp e n di tu r e s U nr e s e r v e d  F un d  B a l an c e 20 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 20 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 Im p a c t s o f T a x R e f o r m a n d E c o n o m i c Do w n t u r n Do w n t u r n Ta b l e 1 – C u m u l a t i v e C h a n g e s i n N u m b e r o f P e r s o n n e l F Y 2 0 0 8 Re d u c t i o n s FY 2 0 0 9 Re d u c t i o n s FY 2 0 1 0 Re d u c t i o n s Cu m u l a t i v e Ch a n g e Fu l l - t i m e - 1 5 - 1 5 - 2 0 - 5 0 po s i t i o n s el i m i n a t e d Pa r t - t i m e po s i t i o n s el i m i n a t e d -7 - 1 7 - 2 - 2 6 el i m i n a t e d Pa r t - t i m e ho u r s el i m i n a t e d -7 , 1 9 8 - 1 7 , 8 0 4 - 2 , 0 0 0 - 2 7 , 0 0 2 Im p a c t s o f T a x R e f o r m a n d E c o n o m i c Do w n t u r n Do w n t u r n Ta b l e 2 – C u m u l a t i v e P e r c e n t a g e C h a n g e s i n Ge n e r a l F u n d Ex p e n d i t u r e C a t e g o r i e s De s c r i p t i o n F Y 2 0 0 7 F Y 2 0 0 8 F Y 2 0 0 9 P r o p o s e d FY 2 0 1 0 Cu m u l a t i v e Ch a n g e F Y 07 10 % Change FY 07-10 07 -10 Sa l a r i e s $ 2 7 , 5 6 9 , 5 0 5 $ 2 8 , 5 1 4 , 8 2 7 $ 2 8 , 1 3 1 , 9 3 2 $ 2 7 , 4 0 7 , 7 4 4 - $ 1 6 1 , 7 6 1 - 1 % Ov e r t i m e $ 1 , 3 4 7 , 6 8 9 $ 1 , 4 9 0 , 9 7 9 $ 1 , 26 2 , 0 6 4 $ 1 , 1 3 9 , 0 8 8 - 2 0 8 , 6 0 1 - 9 % PT S a l a r i e s 7 6 2 , 9 9 0 7 5 2 , 6 2 4 5 8 2 , 1 0 6 5 6 0 , 8 5 5 - 2 0 2 , 1 3 5 - 2 6 % Pr o f e s s i o n a l 2, 1 7 5 , 4 5 8 1, 7 4 5 , 0 0 8 1, 5 2 6 , 3 3 1 1, 36 5 ,9 0 9 -80 9, 5 4 9 -3 7 % Pr o f e s s i o n a l Se r v i c e s 2, 1 7 5 , 4 5 8 1, 7 4 5 , 0 0 8 1, 5 2 6 , 3 3 1 1, 36 5 ,9 0 9 80 9, 5 4 9 3 7 % Su b t o t a l $ 3 1 , 8 5 5 , 6 4 2 $ 3 2 , 5 0 3 , 4 3 8 $ 3 1 , 5 0 2 , 43 3 $ 3 0 , 4 7 3 , 5 9 6 - $ 1 , 3 8 2 , 0 4 6 - 4 % R& M Ve h i c l e s 2, 1 5 6 , 4 9 3 2 , 6 9 4 , 3 8 3 2 , 1 1 7 , 82 5 2 , 2 4 0 , 1 3 8 8 3 , 6 4 5 4 % Se m i n a r s / Tr a v e l / tr a i n i n g 46 4 , 7 8 8 3 6 9 , 9 9 8 3 2 8 , 4 5 5 1 1 7 , 5 0 9 - 3 4 7 , 2 7 9 - 7 5 % Ca p i t a l Ou t l a y 4, 7 7 9 , 6 4 0 3 , 3 7 4 , 6 4 6 2 , 5 3 4 , 5 0 0 6 5 3 , 5 7 6 - 4 , 1 2 6 , 0 6 4 - 8 6 % Ou t l a y Gr a n d To t a l s $3 9 , 2 5 6 , 5 6 3 $ 3 8 , 9 4 2 , 4 6 5 $ 3 6 , 4 8 3 , 2 1 3 $ 3 3 , 4 8 4 , 8 1 9 - $ 5 , 7 7 1 , 7 4 4 - 1 5 % Im p a c t s o f T a x R e f o r m a n d E c o n o m i c Do w n t u r n Do w n t u r n Ta b l e 3 – C u m u l a t i v e G e n e r a l F u n d R e v e n u e E f f e c t s f r o m T a x R e f o r m L e g i s l a t i o n an d E c o n o m i c D o w n t u r n FY 2 0 0 8 FY 2 0 0 9 FY 2 0 1 0 Cu m u l a t i v e FY 20 0 8 FY 20 0 9 FY 20 1 0 Cu m u l a t i v e Change 5% S t a t u t o r y Ro l l B a c k -$ 2 , 6 7 9 , 2 1 4 N / A N / A - $ 2 , 6 7 9 , 2 1 4 Ad t 1 N/ A 2 1 3 0 3 4 8 N/ A 2130348 A me n d me n t 1 N/ A -2 ,13 0 ,34 8 N/ A -2 ,130 ,348 Ma r k e t V a l u e Ad j u s t m e n t N/ A - 1 , 4 0 1 , 8 8 1 - 4 , 4 0 5 , 9 5 3 - 5 , 8 0 7 , 8 3 4 Ot h e r R e v e n u e N / A - 1 , 1 5 9 , 3 5 9 - 8 3 4 , 7 9 2 - 1 , 9 9 4 , 1 5 1 Tl R d i $2 6 7 9 2 1 4 $4 6 9 1 5 8 8 5 2 4 0 7 4 5 $12611547 T ot a l R e d uc t i on s - $2 ,67 9 ,21 4 -$4 ,69 1 ,58 8 -5 ,24 0 ,74 5 -$12 ,611 ,547 Re v e n u e f r o m Ne w Co n s t r u c t i o n 2, 6 0 5 , 3 6 2 1 , 9 6 6 , 6 9 4 1 , 1 3 3 , 9 8 4 5 , 7 0 6 , 0 4 0 Ne t R e v e n u e Lo s s -$ 7 3 , 8 5 2 - $ 2 , 7 2 4 , 8 9 4 - 4 , 1 0 6 , 7 6 1 - $ 6 , 9 0 5 , 5 0 7 20 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 EI G H T  YE A R  AN A L Y S I S  OF  UN D E S I G N A T E D  FU N D  BA L A N C E S  (R E S E R V E S ) Re s e r v e s ‐ Be g i n n i n g 1, 0 7 0 , 0 6 9 $  3, 1 5 9 , 6 9 6 $  7, 2 6 9 , 7 4 4 $  7, 5 3 2 , 9 8 9 $  7, 5 2 4 , 0 1 7 $  8, 6 2 2 , 6 0 9 $     10,452,530 $ 15,766,134 $  Ne t  Ch a n g e 2 , 0 8 9 , 6 2 7 4 , 1 1 0 , 0 4 8 2 6 3 , 2 4 5 ( 8 , 9 7 2 ) 1 , 0 9 8 , 5 9 2 1 , 8 2 9 , 9 2 1 5 , 3 1 3 , 6 0 4 4 , 7 8 7 , 4 2 4 Re s e r v e s ‐ En d i n g 3, 1 5 9 , 6 9 6 $  7, 2 6 9 , 7 4 4 $  7, 5 3 2 , 9 8 9 $  7, 5 2 4 , 0 1 7 $  8, 6 2 2 , 6 0 9 $  10 , 4 5 2 , 5 3 0 $ 1 5 , 7 6 6 , 1 3 4 $ 20,553,558 $  Op e r a t i n g   Ex p e n d i t u r e s 2 9 , 7 5 4 , 9 9 2 3 3 , 7 2 9 , 5 3 8 4 1 , 9 1 4 , 6 9 0 5 2 , 1 1 1 , 2 7 5 5 6 , 2 6 5 , 1 3 5 6 3 , 7 2 0 , 6 5 8 6 9 , 9 1 8 , 0 7 1 6 8 , 0 6 9 , 9 7 7 Ba l a n c e  as  % of   Ex p e n d i t u r e s 1 0 . 6 % 2 1 . 6 % 1 8 . 0 % 1 4 . 4 % 1 5 . 3 % 1 6 . 4 % 2 2 . 5 % 3 0 . 2 % No t e s : 20 0 7 : (1 )  Re a l i z e d  a  sa v i n g s  of  $3 0 0 , 0 0 0  by  sw i t c h i n g  to  FR S (2 )  Sa v i n g s  of  $8 4 4 , 0 0 0  fr o m  un f i l l e d  va c a n c i e s  in  an t i c i p a t i o n  of  ta x  re f o r m 20 0 8 : (1 )  Re c e i v e d  $1 . 2  mi l l i o n  fr o m  FE M A (2 ) Sa v i n g s of $1 1 mi l l i o n fr o m un f i l l e d va c a n c i e s in an t i c i p a t i o n of ta x re f o r m (2 )  Sa v i n g s  of  $1 .1  mi l l i o n  fr o m  un f i l l e d  va c a n c i e s  in  an t i c i p a t i o n  of  ta x  re f o r m (3 )  Sa v i n g s  fr o m  un s p e n t  CI P ,  e. g . ,  $7 5 0 . 0 0 0  to  re p l a c e  po o l  (r e p a i r s  ma d e  in s t e a d ) Ef f T i l H 5 5 0 Ef f ec t on T yp i ca l H om e o w n e r – 5 .50 Op e r a t i n g R a t e & . 1 4 9 D e b t ( 5 . 6 4 9 Ho m e s t e a d e d Ta x a b l e V a l u e 5 . 6 4 9 A n n u a l % o f T o t a l .1 % i n c r e a s e Cu r r e n t R a t e Pr o p o s e d R a t e In c r e a s e Pr o p e r t i e s i n to t a l ) .1 % in c r e a s e Cu r r e n t Ra t e Pr o p o s e d Ra t e In c r e a s e Pr o p e r t i e s in (A f t e r $ 5 0 K E x e m p ) 5 . 3 9 9 5 . 6 4 9 ( D e c r e a s e ) C i t y o f P B G $2 0 0 , 0 0 0 t o $2 0 0 , 2 0 0 $ 1 , 0 7 9 . 9 8 $ 1 , 1 3 0 . 9 3 $ 5 0 . 9 5 6 0 . 5 5 % $3 0 0 , 0 0 0 t o $3 0 0 3 0 0 $1 6 1 9 9 7 $1 6 9 6 3 9 $7 6 4 2 14 0 3 % $3 0 0 ,30 0 $1 ,61 9 .97 $1 ,69 6 .39 $7 6 .42 14 .03 % $4 0 0 , 0 0 0 t o $4 0 0 , 4 0 0 $ 2 , 1 5 9 . 9 6 $ 2 , 2 6 1 . 8 6 $1 0 1 . 9 0 8. 2 5 % 82 . 8 3 % No n - H o m s t e a d e d Ta x a b l e V a l u e 9. 9 % d e c r e a s e ( a v g . PB C P r o p e r t y A p p r a i s e r ) $2 0 0 , 0 0 0 t o $1 8 0 , 2 0 0 $ 1 , 0 7 9 . 9 8 $ 1 , 01 7 . 9 5 - $ 6 2 . 0 3 4 9 . 4 9 % $3 0 0 0 0 0 to $3 0 0 ,00 0 to $2 7 0 , 3 0 0 $ 1 , 6 1 9 . 9 7 $ 1 , 52 6 . 9 2 - $ 9 3 . 0 5 1 9 . 0 3 % $4 0 0 , 0 0 0 t o $3 6 0 , 4 0 0 $ 2 , 1 5 9 . 9 6 $ 2 , 03 5 . 9 0 - $ 1 2 4 . 0 6 9 . 7 8 % 78 . 3 0 % Budget Advisory Committee Report to the City Council (With Management Responses) This committee continues to be impressed with the knowledge and thoroughness of the staff responsible for the preparation of the annual budgets to the Council. The methods used to make the projections of revenues, expenses and capital expenditures are logical and prudent. With regard to outstanding debt, the staff is alert for opportunities to lower interest rates. Furthermore, it is very evident that the staff has developed the anticipatory skills needed to cope with the changing environment. We thank the Council for considering many of our suggestions made in the past three years. We believe the outlook for the future financial position of the City has improved. This has been demonstrated by the administration’s having to deal with the new mandate from the state without severely cutting programs, while maintaining necessary services and maintaining what we consider to be an adequate reserve. While the City of Palm Beach Gardens remains relatively strong, the City must remain attuned to the general economic conditions of the State of Florida. In particular, the City must pay attention to the declining real estate market in the State of Florida. The boom times of the past decade are over and are unlikely to return any time soon. This results in less sales tax, corporate income tax and documentary stamp tax for the State of Florida and less ad valorem taxes for the City of Palm Beach Gardens. The City must remain ever vigilant of expenditures. We do have some suggestions, dealing with financial strategy, policy and governance, which are respectfully submitted, for the consideration of staff and the elected Council. Proposed Reserve Fund for 2007-2008 Should Be Maintained The staff recommendation for the forthcoming budget with respect to the size of the Reserve Fund is $11.3 million, which is 16% of budgeted operating expenditures. Although this is slightly above the 5-15% range set out in the City’s Financial Policies, the committee suggests that this level be maintained for the coming fiscal year. The City has experienced a reduction in development and state shared revenue due to the current economic environment, and we believe it is appropriate to continue setting funds aside for a “rainy day”. Areas of possible need for a large reserves range from tropical storm damage to a period of lowered real estate values or future state mandates regarding real estate taxes. There may be temptations to take funds from the reserves because of the state “roll back”. This has been done in jurisdictions around us. But that solution only lasts for a short period and when the band-aid falls off, it frequently is difficult to stop the bleeding. 1 hture, made or promised by the employer, for payroll taxes, vacation pay, holiday pay, worker comp, personal time, sick pay, health “insurance” (both for current employment and during retirement) and pensions should be translated into a per year amount (or hourly, if that is more meaningful) for each employee. The result will be surprisingly high for many readers of the data. That should be done at the time any improvement in a benefit is considered. An example is the health insurance made available to retired City employees. The committee understands that this is a benefit that is mandated by state statutes, and that staff has mitigated the cost by charging retirees the maximum allowed by law; however, as the result of new financial statement disclosure requirements, the cost of that benefit has attracted attention. Now a calculation is required to attach a cost to current employment. This cost has a “sticker price” of approximately $613 a year for each current employee. Except for those who are informed, this had been considered a “no cost” item. Management Response: As is the case with any service provider, salaries and benefits are the largest category of expenditures. Accordingly, we prepare a five-year forecast annually to focus on future trends, so that corrective measures can be taken on a pro- active, as opposed to reactive, basis. In addition, we perform market studies of general employees’ compensation every 2-3 years. The most recent study was issued in June 2006, and the result was extremely favorable, with a finding that 91% ofpositions were at or below the appropriate market levels. Last year, at the direction ofCounci1. we also engaged a consultant to perform a total compensation study for police officers. which show’ed that salaries were competitive, but that pension benefits were below the market, This enabled Council to make a better informed decision with regard to the pension enhancements that were being requested by the Police Pension Board. In the future, we will continue to focus on total compensation, as the Committee suggests. Pension Plans This committee for three years has commented on the funding status of the pension plans and also the high administrative cost of the plans. The Council two years ago authorized the engagement of an actuary who is not associated with either plan. He concurred that actuarial assumptions in both plans should be more conservative. As a result, both plans have introduced new and more conservative assumptions. We are pleased that progress has been made, however, annual expenses increased by $617,849 a year. Unfortunately we still believe there is under funding, which will force higher contributions in future years and also understates the current cost ofemployment. One of the primary factors is the discount rate used by each plan. The discount rate determines the annual amount, which should be set-aside in an account earning interest, to pay off a future claim. For instance if $100 needs to be paid in one year, if the interest rate is 8% then $92.59 should be placed into an account in order to have $100 at the end of the year. If the interest rate is 6%, then $94.34 must be placed in the account. The $2 3 I' for this expense. The solution may range from the use of cafeteria plans to higher employee contributions. We also recommend a continuation of the effort to reduce overtime. Management Response: StaE agrees with the Committee 's recommendations. We are proposing to increase the cost of family coverage an average of 30% next year. In addition we are again offering Health Savings Accounts, with enhanced benefit levels to encourage more participation, in conjunction with our existing Flexible Spending Plan (Section I25 Cafeteria Plan). With regard to overtime, staff has taken steps to curtail overtime where possible. As an example, overtime hours in the Fire Department decreased from 23.649 in FY 2004/05, to 12,487 in FY 2005/06. Overtime hours through the first nine months of FY 2006/07 totaled 4,807. Actual expenditures in FY 2004/08 were $1,264,641, while expenditures through thefirst nine months of FY 2006107 were $432,343. Establish an Independent Audit Committee Again we suggest the Council consider the formation of an independent audit committee. It is not customary in government but the private sector considers it to be a necessity. An audit committee has the dual function of ascertaining the independence of auditors and develops an insight into quality of controls and other relevant matters. Management Response: Recent publications by the Government Finance OfJcers Association (GFOA) suggest that an audit committee's members should possess or obtain an understanding of governmental financial reporting and auditing. The GFOA further suggests that the committee should have access to the services of at least one governmentalJinancia1 expert, either a committee member or an outside party. In order to obtain the services of a consultant, the GFOA recommends the committee have access to sufficient funding to engage the services ofjhancial experts. legal counsel, and other appropriate specialists, as needed. We believe the creation of an audit committee could unnecessarily lengthen, and increase the cost of: the audit process. 5