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Home My WebLink AboutAgenda BOC 072210AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Thursday JuIV 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, DELE Chair Vice Chair Regular Member Regular Member Regular Member :TIONS, MODIFICATIONS: V. APPROVAL OF MINUTES 1. June 24, 2010 VI. ITEMS BY COUNCIL LIAISON 1. FY 2011 Budget Update VIII. OLD BUSINESS IX. NEW BUSINESS X. COMMENTS BY PUBLIC XI. COMMENTS BY THE BOARD XII. ADJORNMENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE REGULAR MEETING JUNE 24, 2010 I. CALL TO ORDER The regular meeting was called to order at 8:36 a.m. by Chair L. Marc Cohn. H. PLEDGE OF ALLEGIANCE III. ROLL CALL PRESENT: Chair L. Marc Cohn, Vice Chair Kenneth Menard, Bernard Pettingill, Phillip A. Woodall ABSENT: Brandon Dorsey ALSO PRESENT: Vice Mayor, Council Liaison Robert Premuroso; City Attorney R. Max Lohman; City Clerk Patricia Snider; Finance Administrator, Staff Liaison Allan Owens; Deputy Finance Administrator, Alternate Staff Liaison Mary Anderson - Pickle. IV. ADDITIONS, DELETIONS, MODIFICATIONS 1. Board and Committee Orientation Presented Item: City Attorney R. Max Lohman. V. APPROVAL OF MINUTES Vice Chair Menard made a motion for approval of the June 3, 2010 minutes. Phillip Woodall seconded. Motion passed 4 -0. VI. ITEMS BY COUNCIL LIAISON. None. VII. ITEMS BY STAFF LIAISON 1. FY 2011 Budget _ Update Staff Presentation: Deputy Finance Administrator Mary Anderson - Pickle. VIII. OLD BUSINESS None. IX. NEW BUSINESS None. X. COMMENTS BY THE PUBLIC None. XI. COMMENTS BY THE BOARD None. (The remainder of this page intentionally left blank.) BUDGET OVERSIGHT COMMITTEE MEETING 06.24.10 PAGE 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 XII. ADJOURNMENT Bernard Pettin2ill made a motion for adjournment. Kenneth Menard seconded. Motion passed, 4 -0. The meeting adjourned at 9:39 a.m. The next regular meeting will be held July 22, 2010. APPROVED: L. Marc Cohn, Chair Kenneth Menard, Vice Chair Nw 'jljjjijjj:� Bernard Pettingill t Brandon Dorsey \?"* 7or Phillip A. Woodall ATTEST: Donna M. Cannon AV Municipal Services Coordinator NOTE: These minutes are prepared in compliance with 286.011 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 MEETING 06.24.10 PAGE 2 City of Palm Beach Gardens Proposed Operating &Capital Improvements Budget Resolution 3 2010 Tentative Millage Rate Adoption Purpose Required by Chapter 200.065 Florida Statutes Set maximum millage rate (can be lowered, but not raised, during hearings) • Set date and time of first public hearing, which will be published on Notice of Proposed Taxes Background • On 6/3/2010, staff recommended a proposed operating rate of 5.65, and a debt service rate of .182 mills • These rates were based on the June property estimates from the PBC Property Appraiser - $8.2 billion • On 7/1/2010, final values were received, which were 3% LESS than June numbers - $7.9 billion • This equals about $1.3 million less revenue at the above tax rates Summary of Changes in Total Property FY 2009/10 Total Market Value New Construction Net Change FY 2010/11 Total Valuation $8,900,377,246 (1,060,025,155) 99.045.111 (960,980,044) $7,939,397,202 (11.9 %) 1.1% (10.8%) Proposed Millage • Based on final property value, proposed operating rate is 5.83, which is 3.3% below roll -back rate of 6.0286 • Debt service rate is .1854 • Total rate is 6.0154 Effect on Homesteaded & Non - Homesteaded Property Owners Homesteaded Taxable Value 6.0154 Annual 0/6 of Total 2.7% increase Current Rate Proposed Rate Increase Properties in (After $50K Exemp) 5.539 6.0154 (Decrease) City of PBG $200,000 to $205,400 $1,107.80 $1,235.56 $127.76 64.67% $300,000 to $308,100 $1,661.70 $1,853.34 $191.64 12.76% $400,000 to $410,800 $2,215.60 $2,471.13 $255.53 7.23% 84.66% Non- Homsteaded Taxable Value 11.9% decrease (avg. City -wide) $200,000 to $176,200 $1,107.80 $1,059.91 - $47.89 63.39% $300,000 to $264,300 $1,661.70 $1,589.87 - $71.83 13.31% $400,000 to $352,400 $2,215.60 $2,119.83 - $95.77 7.71% 84.40% Illustration of Cumulative Revenue Losses, Additional Union /Pension Obligations, and Cost Reductions Since FY 2008 Using June 1st Property Value 14,000,000 Revenue Loss $9.3 Personnel Million 6,000,000 Reductions $4.3 Mill ion 4,000,000 - Discretionary Operating Cost Reductions $3.7 2,000,000 Million Additional Obligations and Revenue Loss Cost Reductions Additional Union /Pension Projected FY Obligations 2011 12,000,000 $3.8 Million Deficit $5 Million, (with no tax increase) 1 0,000,000 Revenue Loss $9.3 Personnel Million 6,000,000 Reductions $4.3 Mill ion 4,000,000 - Discretionary Operating Cost Reductions $3.7 2,000,000 Million Additional Obligations and Revenue Loss Cost Reductions Illustration of Cumulative Revenue Losses, Additional Union /Pension Obligations, and Cost Reductions Since FY 2008 14,000,000 12,000,000 4,000,000 2,000,000 Using July 1St Property Value Additional Union /Pension Obligations $3.8 Million Revenue Loss $10.6 Million Additional Obligations and Revenue Loss Cost Reductions Projected FY 2011 Deficit $6.3 Million, (with no tax increase) �rsonnel eductions $4.3 lillion Discretionary Operating Cost Reductions $3.7 Million Balancing the FY 2011 Budget Based on June 15t Property Value Deficit with no increase in millage rate Additional revenue with 5% increase in millage rate Balance from Reserves Reserve Balance — 10/1/2010 Reserve Balance — 9/30/2011 Reserve $5.0 million 2.3 million $2.7 million $21 million $18.3 million 28% Balancing the FY 2011 Budget Based on July 15t Property Value Deficit with no increase in millage rate Additional revenue with 8.2% increase in millage rate Balance from Reserves Reserve Balance — 10/1/2010 Reserve Balance — 9/30/2011 Reserve $6.3 million 3.6 million $2.7 million $21 million $18.3 million 28% Significant Items Voluntary Separation Program — reduction of 20 positions ($2 million savings) • Eliminate 7 vacant positions ($850,,000 savings) • Transfer 4 positions to Special Revenue Funds ($450,000 savings) Total Savings - $3.3 million Significant Items • No salary increases budgeted for General, SEW, and PBA employees • Eliminated Longevity program for General and SEW - PBA contract under negotiation ($840,000 savings) • Capped Conversion of Leave at 80 hrs. per fiscal year • Eliminated Personal Leave and Acute Leave; replaced with Paid Time Off (PTO); reduced accrual by 4 hrs. per month for all employees — PBA and IAFF contracts to be negotiated Budget Summary Total All Funds - $106,119,427 BEGINNING ENDING FUND BALANCE REVENUES EXPENDITURES BALANCE GENERAL FUND $ 21,059,857 $ 62,579,771 $ 65,313,111 $ 18,326,517 SPECIAL REVENUE FUNDS Gas Tax 796,862 667,200 1,015,408 448,654 Recreation 634,279 2,843,625 3,047,683 430,221 Golf 260,889 1,474,500 1,442,574 292,815 Police Training /Grants 29,369 20,000 10,000 39,369 TOTAL $ 1,721,399 $ 5,005,325 $ 5,515,665 $ 1,211,059 INTERNAL SERVICE FUNDS Fleet Maintenance 669,864 2,350,660 2,315,619 704,905 Self- Insurance Fund 1,281,050 6,411,399 6,411,399 1,281,050 TOTAL $ 1,950,914 $ 8,762,059 $ 8,727,018 $ 1,985,955 CAPITAL PROJECT FUNDS Recreation Impact Fee 257,610 190,340 - 447,950 Police Impact Fee 44,546 77,634 - 122,180 Fire Impact Fee - 229,223 85,000 144,223 Art Impact Fee 195,833 1,000 - 196,833 Road Impact Fee 1,200,999 589,087 1,199,440 590,646 PGA Flyover Capital Project 533,944 738,000 617,205 654,739 Burns Road Capital Project 282,446 699,440 699,440 282,446 TOTAL $ 2,515,378 $ 2,524,724 $ 2,601,085 $ 2,439,017 GRAND TOTAL $ 27,247,548 $ 78,871,879 $ 82,156,879 $ 23,962,548 Recommendation Staff recommends approval of Resolution 37, 2010, setting a maximum operating millage of 5.83 and debt service millage of .1854 • Staff recommends setting date for first public hearing September 16, 2010, at 7 PM, in the City Council Chambers