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Home My WebLink AboutAgenda BOC 060310AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Thursday June 3, 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. April 22, 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 XI. COMMENTS BY THE BOARD XII. ADJOURNMENT City Manager Budget Report June 3, 2010 Revenue and Expenditure Impacts Since FY 2009 •'v Revenue loss $9.3 million 1 •� Union obligations absorbed $3.8 million *:* Total budgetary impact $13. I million I •� Operating cost reductions $3.7 million 1 Loss of 80 full -time positions (2008-11) I Loss of 27,000 part -time hours (2008-11) Total Budgetary Impacts Since FY 2009 �«�I�I��I�T�; 2,000,000 1 0,000,000 ►��, 2,000,000 m pacts Total Budgetary Impacts Since FY 2009 E,�IZIII�IIITI; 2,000,000 1 0,000,000 111 111' . 111 111 111 111, 2,000,000 Revenue Loss m pacts Total Budgetary Impacts Since FY 2009 E,�IZIII�IIITI; 12,000,000 10,000,000 111 111' . 111 111 111 111' 2,000,000 Jnion /Pension Obligations Revenue Loss m pacts Total Budgetary Impacts Since FY 2009 K,�IZIII�IIITI; 12,000,000 10,000,000 111 111' . 111 111 111 111' 2,000,000 Jnion /Pension Obligations Revenue Loss m pacts Expense Reductions Total Budgetary Impacts Since FY 2009 E,�IZIII�IIITI; 12,000,000 10,000,000 111 111' . 111 111 111 111' 2,000,000 Jnion /Pension Obligations Revenue Loss m pacts Reductions Total Budgetary Impacts Since FY 2009 E,�IZIII�IIITI; 12,000,000 10,000,000 111 111' . 111 111 111 111' 2,000,000 Jnion /Pension Obligations Revenue Loss m pacts Deficit Reductions i Personnel Impacts Voluntary Separation Program Other Eliminations ' Transfer GF salaries to other funds Total Total Postions Considered for Elimination: 30 Total Projected 2011 FT Positions: 434 Total 2003 Budgeted FT Positions: 437 $2,004,372 850,573 EMPLOYEES COMPARED TO TOTAL POPULATION 2003 2004 2005 2006 2007 2008 2009 2010 (3) 2011 (3) 1 Employees 437 458 473 501 514 501 484 464 434 Population 39,423 42,384 45,584 48,176 49,387 50,282 49,941 49,941 49,941 Employees per 1,000 population 11.08 10.81 10.38 10.40 10.41 9.96 9.69 9.29 8.69 M i I I age Rate 6.25 6.04 6.026 5.928 5.655 5.254 5.399 5.539 5.832 Note (3J 2010 and 2011 population estimates not available. No increase in population levels from 2009 used for illustrative purposes. Salary/ Benefit Trend 21,000,000 19,000,000 Police contract currently 17,000,000 under negotiation .1 C 15,000,000 o General Q 13,000,000 (Non Union) 11,000,000 f PBA 04 CO 9,000,000 - �lAFF 7,000,000 5,000,000 SEIU 3,000,000 — — — 2007 2008 2009 2010 2011 �. col @@I 7,000,000 6,000,000 4- 0 5,000,000 E Q 4,000,000 a 3,000,000 m 2,000,000 I�r�i�1��r�1�i�: Operating Expenditure Trend 2007 2008 2009 2010 2011 General f Police f Fire Significant Factors for FY 2011 Budget 4 ❖Expenditures - •Personnel 'Health and Workers' Compensation Insurance Operating 4 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 $ I . I million 4 Longevity — potential savings $1.2 million Tuition Reimbursement — savings $ 17,000 Voluntary Separation Program On -site Healthcare Clinic (savings TBD) 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 • Status: The Voluntary Separation Program closed on 517120 10. A total of 23 employees took advantage of the program. Total estimated savings next year: $2 million. i 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 ❑Workers' Compensation 'Occupational Health Employment related drug testing • Status: RFP's have been reviewed and scored by the Selection Committee. Recommendation to award contract will be brought to Council before end of the fiscal year, with estimated implementation date prior to January I, 201 I. Estimated savings: I St year - $ 1 70,000, 2nd year - $500,000, 3rd year - $840,000. Taxable Property Valuation Preliminary estimate received from Property Appraiser on 5/27/2010. Total value is $8.2 billion (down 9%). New construction is $80.1 million. Total net ad valorem revenue loss of $4 million for FY 2011 . Other Revenues Revenue estimates from State not yet available. Staff projects significant reductions in Investment Income, State Revenue Sharing, and Electric Franchise Fees, based on current year collections. Overall, other revenues are projected about $ I.6 million less for FY 2 01 I. FY 2011 Revenue Reductions Overall, total estimated revenues in FY 2011 are $5.6 million less than FY 2010, with no change in the millage rate Balancing the FY 2011 Budget Deficit with no increase in millage rate Additional revenue with 5% increase in millage rate Balance from Reserves Reserve Balance — 10/ I /20 10 $5.1 million 2.3 million $2.8 million $21 million Reserve Balance — 9/30/2011 $18.2 million � Reserve % 28% FY 2011 Proposed Millage Increase operating rate 5% from 5.39 to 5.65 mills, which is 4.3% below roll -back rate of 5.9044 • Set debt service millage at. 182 mills (increase due to drop in property values) •Total millage is 5.832 Summary • Preliminary staff recommendation - 5% increase in operating millage, from 5.39 to 5.65, setting the debt service millage at . 182, and use $2.8 million of Reserves to balance the budget. • Line item budget detail will be distributed for further discussion to Council and Budget Oversight Committee after receipt of final values on 7/1/2010. • Council will set the maximum millage rate at 7/15/20 10 Council meeting. Budget Reductions -F Revenue Impacts 5% Statutory Roll -Back Amendment I Market Value Adjustment Other Revenue Total Reductions Revenue from New Construction Net Revenue Loss - $2,679,214 N/A ou r Year N/A N/A - $2,679,214 N/A - 2,130,348 N/A N/A N/A - 1,401,881 - 4,405,953 - 4,470,323 N/A - 1,159,359 - 834,792 - 1,633,228 - $2,679,214 - $4,691,588 - $5,240,745 - 6,103,551 2,605,362 1,966,694 1,133,984 443,820 - $73,852 - $2,724,894 - $4,106,761 - $5,659,731 - 2,130,348 - 10,278,157 - 3,627,379 418,715,098 6,149,860 - $12,565,238 Budget Reductions - FourYear Personnel Impacts Full -time -15 -15 -20 -30 -80 positions eliminated Part -time -7 -17 -2 0 positions eliminated Part -time hours -7,198 - 17,804 -2,000 0 eliminated -26 -27,002 Budget Expend Reductions - FourYear itu re Impacts Salaries $27,569,505 $28,514,827 $28,131,932 $27,332,744 $25,713,968 ($1,855,537) -6.68% Overtime 1,347,689 1,490,979 1,262,064 1,139,088 1,220,383 (127,306) -7.33% PT Salaries 762,990 752,624 582,106 560,855 572,799 (190,191) - 25.54% Professional Services 2,175,458 1,745,008 1,536,331 1,365,909 1,280,221 (895,237) - 49.11% Sub -total $31,855,642 $32,503,438 $31,502,433 $30,473,596 $28,787,371 ($3,068,271) -9.85% R &M Vehicles 2,156,493 2,694,383 2,117,825 2,237,388 2,297,424 140,931 11.87% Travel /Training 464,788 369,998 341,812 312,260 296,552 (168,236) - 41.69% Capital Outlay 4,779,640 3,374,649 1,104,914 1,156,576 1,804,755 (2,974,885) - 35.94% Grand Totals $39,256,563 $38,942,465 $36,483,213 $33,987,819 $33,186,102 ($6,070,461) - 16.31% 0 Expenditure and Revenue Trends 72,000,000 70,000,000 68,000,000 66,000,000 c 0 Q 64,000,000 0 Sao 62,000,000 3 m 60,000,000 58,000,000 56,000,000 54,000,000 2007 2008 2009 2010 2011 Revenue Operating Expenses —% Expenses Less Increases in Public Safety Personnel Costs Since 2007 Estimated Revenues &Expenditures Revenue Millage Current $60.1 M Additional Proposed 5% . Millage $2.3M $62.4M Expenditures 65.2M 65.2M Deficit ($5.1 M) $2.3M ($2.8M) Reserve Balance $16M $18.3 M of Expenditures 24% 28% Operating Millage 5.39 5.65 Debt Service .149 .182 Total Millage 5.539 5.832 Roll Back Rate 5.9044 5.9044 Below Roll Back (8.7%) (4.3% Estimated Revenues &Expenditures FY 20 10 Millage Rates Proposed 5% Increasein Millage Operating Millage 5.39 5.65 Debt Service .149 .182 Total Millage 5.539 5.832 Roll Back Rate 5.9044 5.9044 Below Roll Back (8.7%) (4.3%) Balancing the FY 2011 Budget Deficit with no increase in millage $5.1 million Capital $ 1,804,755; IAFF Salary /VEBA increase $222,343; Fire Pension increase $ 1 96,000; Fire Longevity $395,800; 2_3 Other Operating Expenses $181,102 $ million million Reserve Balance — 10/ I /20 10 $21 million Reserve Balance — 9/30/2011 $18.2 million � Reserve % 28%