HomeMy WebLinkAboutAgenda BOC 042210AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COMMITTEE
Thursday April 22, 2010, 8:30 AM
CITY COUNCIL CHAMBERS
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL:
Regular Members
L. Marc Cohn
Kenneth Menard
Bernard Pettingill
Phillip Woodall
Brandon Dorsey
IV. ADDITIONS, DELETI(
Chair
Vice Chair
Regular Member
Regular Member
Regular Member
)NS, MODIFICATIONS:
V. APPROVAL OF MINUTES
1. March 19, 2010
VI. ITEMS BY COUNCIL LIAISON
VII. ITEMS BY STAFF LIAISON
VIII. OLD BUSINESS
IX. NEW BUSINESS
1. FY 2009 Audit Report
2. FY 2011 Budget Update
X. COMMENTS BY PUBLIC
XI. COMMENTS BY THE BOARD
XII. ADJORNMENT
Audit Summary
Unqualified, clean opinion
The City maintains a strong financial position
No findings or material weaknesses
No deficiencies in internal control
No issues of noncompliance
One recommendation - Adopt a more formal
policy to assess risk
General Fund Financial Highlights
Total revenues and other financing sources of $71.3
million
Total expenditures and
$69.2 million
other financing uses of
Fund balance increased by$2.1million
Unreserved, undesignated fund balance equaled
si9.8 million or 30% of total expenditures
Unreserved, undesignated fund balance represents
3 1/z months of expenditures
Revenue Sources
Taxes
Franchise fees
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Investment income
Miscellaneous
Total revenues
Percent
Percent
Increase
Percentage
2009 of 2008
of
(Decrease)
of Increase
Amount Total Amount
Total
From 2008
(Decrease)
$ 53,133,673
76.0%
$ 52,851,356
5,702,964
8.2%
5,516,091
2,020,336
2.9%
2,832,118
4,525,422
6.5%
6,153,203
1,936,315
2.8%
1,826,390
424,257
0.6%
307,933
1,285,619
1.8%
1,332,349
817,771
1.2%
630,151
73.9%
$ 282,317
0.5%
7.7%
186,873
3.4%
4.0%
(811,782)
-28.7%
8.6%
(1,627,781)
-26.5%
2.6%
109,925
6.0%
0.4%
116,324
37.8%
1.9%
(46,730)
-3.5%
0.9%
187,620
29.8%
$ 69,846,357 100.0% $ 71,449,591 100.0% $ (1,603,234) -2.2%
General Fund Expenditures
Current Year vs. Prior Year
❖Total expenditures decreased by $2.6 million or 3.8% as a result of tax reform and spending cuts
mandated by the City.
❖General Government departments decreased by $189 thousand and General Services increased by
$168 thousand resulting in a net decrease of $21 thousand. General Services increased as a result of
increases in garbage collection and insurance costs.
❖Public Safety — Increased by $372 thousand or 1 % - due to increases in personnel related
expenditures associated with union negotiated salary adjustments and required contribution increases to
the Police and Fire Pensions.
Debt Compliance
Debt Covenants
•:Total debt service due in each fiscal year
shall not exceed 50% of non ad valorem
revenues
❖Total non ad valorem revenue must exceed
2 times the maximum debt service
requirements
❖The City set aside and reserved $2.4 million
of fund balance in order to protect the City's
bond rating
Non Ad Valorem
Revenue
Available for Debt
miL Coverage dk
Series 2003
Revenue
Refunding
9
Debt Service
2005 Public 2006 Public
Improvement
Bond Golf
Course
Improvement
Bond
Recreation
Fiscal Debt per
Year Total Debt Capita
Financial Position
Total City debt has been reduced by $io million or
26% over a io year period
General Fund reserves have been increased by$22
million over the io year period
City has increased reserves by $6 million during
the recession as a result of significant budget cuts
City initiated a self insurance fund resulting in an
annual savings of $465 thousand. In prior years,
this amount would have been net income for BCBS
Resident Cost
by Department
% of Total
City Department
(1)
Cost
City Council
$ 4.85
0.45%
Administrative services
9.07
0.84%
Information services
20.12
1.86%
City clerk
9.52
0.88%
Legal services
7.64
0.71%
Public relations
1.83
0.17%
Engineering
1.64
0.15%
Human resources
12.35
1.14%
Finance
16.46
1.52%
Honda Classic
1.89
0.17%
General services (2)
117.88
10.92%
Growth management:
37.03
3.43%
Police
368.03
34.08%
Fire
269.04
24.92%
Culture & Recreation
32.47
3.01%
Parks /Grounds
59.05
5.47%
Public Works
56.72
5.25%
Stormwater
22.46
2.08%
Construction /Building Services
1.95
0.18%
Debt Service
29.80
2.76%
Total
$ 1,079.80
100.00%
Questions?
Budget Oversight Committee
FY 2011 Budget Update
M
Projected timetable for preparation of the FY
2011 budget is as follows:
4/01/10 Distribute budget package
Preliminary budgets prepared and submitted to Finance; preparation of
4/01/10 — 4/23/10 preliminary revenue budget
4/25/10 — 5/14/10 Review of Department budgets
5/16/10 — 5/31/10 Balance and prepare draft of budget document
Preparation of budget presentation and budget message, after receipt of
assessed valuation from County; distribute line -item detail book to Council
6/01/10 — 7/08/10 and Budget Oversight Committee.
7/15/10 Presentation to Council
8/26/10 Budget Committee to finalize and issue report
9/01/10 — 9/30/10 Two required public hearings
2
N
Significant Factors for FY 2011 Budget
e• Expenditures -
Personnel
Health and Workers' Compensation Insurance
'Operating
3
N
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
$1.1 million
Longevity up to $1.2 million
Tuition Reimbursement $17,000
Voluntary Separation Program
On -site Healthcare Clinic
4
N
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
5
N
Voluntary Separation Program Faso, 412,1,o,
Position
Total
Total Buy -out
B=
Amount
1 Police Captain
$210,371
$70,931
2 Maintenance Tech 11
52,668
16,491
3 Emergency Comm. Operator
79,984
38,949
4 Police Officer
93,504
36,990
5Chief Lead Maint. Tech V
85,648
32,727
6 Maintenance Tech 1
56,952
21,952
7Administrative Spec III
51,862
17,701
8Growth Mgmt Administrator
133,445
46,335
9 Public Relations Director
102,371
34,251
10 Human Resources Generalist
86,422
30,241
11 Assistant City Manager, Admin
133,157
50,210
12 Firefighter
94,357
23,569
$1,180,740
$420,347
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
On -site Healthcare Clinic
■ RFP 2010 -002 released 4/04/2010
• Mandatory inspection of facilities 4/20/2010
• Proposal opening 5/03/2010 @ 2:00 P.M.
• Initial evaluation to short list Proposals (a maximum of
three (3) qualified candidates will be selected
• Oral presentations scheduled for 5/17/2010
8
N
Key Benefits to City and Employees
■ Voluntary separation — less employees and benefits
expenses
■ On -site Healthcare Clinic
reduced costs of medical claims, out of pocket expenses, and
workers compensation
free access (no co -pays)
less time away from work for doctors visits
improved employee health and productivity
a
M
What's next:
4/01/10 Distribute budget package
Preliminary budgets prepared and submitted to Finance; preparation of
4/01/10 — 4/23/10 preliminary revenue budget
4/25/10 — 5/14/10 Review of Department budgets
5/16/10 — 5/31/10 Balance and prepare draft of budget document
Preparation of budget presentation and budget message, after receipt of
assessed valuation from County; distribute line -item detail book to Council
6/01/10 — 7/08/10 and Budget Oversight Committee.
7/15/10 Presentation to Council
8/26/10 Budget Committee to finalize and issue report
9/01/10 — 9/30/10 Two required public hearings
10