HomeMy WebLinkAboutAgenda BOC 031910AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COMMITTEE
Friday March 19, 2010, 8:30 AM
CITY COUNCIL CHAMBERS
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL:
Regular Members
L. Marc Cohn Chair
Kenneth Menard Vice Chair
Bernard Pettingill Regular Member
Phillip Woodall Regular Member
Brandon Dorsey Regular Member
IV. ADDITIONS, DELETIONS, MODIFICATIONS:
V. APPROVAL OF MINUTES
1. January 28, 2010
2. February 26, 2010
VI. ITEMS BY COUNCIL LIAISON
VII. ITEMS BY STAFF LIAISON
VIII. OLD BUSINESS
IX. NEW BUSINESS
1. FY 2011 Budget Update
X. COMMENTS BY PUBLIC
XL COMMENTS BY THE BOARD
XII. ADJORNMENT
City Manager Report
Fiscal Year 2011
Budaet
0
Past 3 Years Budget
Reductions
■ Net revenue loss $6.9 million (property values, State
revenues, investment income)
■ Public Safety pension costs up almost $1 million in FY 2010
■ 50 Full -time positions eliminated — approx. $4 million
reduction
• 26 Part -time positions eliminated (27,000 hrs)
• Overtime Costs - $209,000 or 9% reduction
• Part -time Salaries - $202,000 or 26% reduction
• Professional Services - $810,000 or 37% reduction
• Travel /Training Costs - $347,000 or 75% Reduction
• Capital Outlay - $3.6 million or 75% reduction
2
N
Current Year Budget
• Overall, revenues on target and
expenditures are slightly under budget
through 12/31/2009
• Preliminary estimated revenues equal
estimated expenditures for FY 2009/10
■ Estimated Undesignated Fund Balance at
9/30/2010 - $21.9 million, compared to
budgeted amount of $20 million
3
N
Significant Factors for FY 2011
Budget
4:• Expenditures -
Personnel
Health and Workers' Compensation Insurance
'Operating
4
0
Personnel Costs and Benefits
■ 5 benefit areas identified as potential cost
saving measures to minimize loss of
personnel:
Convert Personal Leave and Acute Illness Leave to
Paid Time Off (PTO) and cap Conversion of Leave —
potential savings $1.1 million
Longevity — potential savings $1.2 million
Tuition Reimbursement — savings $17,000
Voluntary Separation Program (savings TBD)
On -site Healthcare Clinic (savings TBD)
5
0
Voluntary Separation Program
• Offer opportunity for non - probationary full time
employees to voluntarily resign from employment
• Severance package:
lump sum payment of base salary from last day
employment through 9/30/2010; plus
Employee's option of continued medical /dental
insurance coverage OR lump sum cash equivalent of
City's total cost for continued coverage through
9/30/2010
0
N
On -site Healthcare Clinic
■ On -site healthcare clinic for employees /dependents
Basic primary care services provided by licensed medical
personnel (labs, physicals, wellness, nutrition, pharmacy -
commonly used generic medications)
Add services in future
Li Workers' Compensation
Li Occupational Health
Li Employment related drug testing
• RFP process — services provided via contract
• Location provided by City
• Proposers required to provide financial analysis to project
operational costs and claims savings to City
N
Taxable Property Valuation
■ Estimated potential declines range
countywide, to -5% to 0% in Palm
Gardens
from -12%
Beach
■ Potential deficit in 2011 could range from
$500,000 to $6 million
■ 5 Year Projections — Estimated a 7% decline
in property values ($3.7 million deficit)
■ Waiting for preliminary estimates from
Property Appraiser
8
0
New Construction
• New Construction Value - $150 million per
5 Year Projection (actual 2010 value $213
million)
• Total value of permits issued last fiscal
year was $189 million
0
M
Other Revenues
■ Other Revenues — FY 2010/11 State
revenue estimates are expected to be
released June /July 2010
Sales tax projections are expected to
increase only slightly
Investment returns expected to remain low
New construction remains slow
10
■
Summary
■ FY 2010/11 budget preparation started
Voluntary Separation Program
On -site Healthcare Clinic
Potential revisions to personnel rules and
regulations
Evaluation of potential cost savings through
consolidation
■ Expect preliminary property valuations by 4/1/2010
■ Minimize job loss to maintain current levels of service
11