The URL can be used to link to this page

Home My WebLink AboutAgenda BOC 072811AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Thursday July 28 , 201 1 , 8:3 0 AM CITY COUNCIL CHAMBERS I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL : Regular Members L. Marc Cohn Chair Bernard Pettingill Regular Member Phillip Woodall Regular Member Marilyn Lew -Jacobs Regular Member IV. ADDITIONS, DELETIONS, MODIFICATIONS: V. APPROVAL OF MINUTES 1. June 23 , 2011 VI. ITEMS BY COUNCIL LIAISON VII. ITEMS BY STAFF LIAISON 1. Overview of preliminary FY 2012 Budget VIII. OLD BUS I NESS IX. NEW BUSINESS X. COMMENTS BY PUBLIC XI. COMMENTS BY THE BOARD XII. ADJO U RNMENT CITY OF PALM BEACH GARDENS PROPOSED OPERATING & CAPITAL IMPROVEMENTS BUDGET Budget Oversight Committee July 28, 2011 Accounting and Budget Format Government Accounting Standards Board (GASB) Statement 54 changes to fund balance: Non -spendable Restricted Committed Assigned Unassigned Consolidated Burns Road and PGA Flyover capital projects funds into general fund (no effect on bottom line) Background –Impacts of Economic Downturn and Tax Reform Since FY 2007, property values have dropped from $9.3 billion to $7.8 billion Ad valorem revenue have gone from $50 million in 2007 to $44 million in 2012 Other revenues are down about $3 million in same time period Overall, revenues have declined about $9 million since 2007, with no new sources Summary of Impacts Through FY 2011, 78 positions have been eliminated (15%), from 514 to 436 Approximately 27,000 hours of part -time staffing hours eliminated Increased the employees’ cost for family insurance coverage by an average of 30% No raises since FY 2009 for general and SEIU employees; none for PBA since FY 2010; none projected for all employees in FY 2012 Despite all of these actions, the City would still be facing a shortfall next year of around $3.7 million with no further cuts or increased revenue Summary of Changes in Total Property Valuation FY 2010/11 Total $7,934,314,783 Market Value (215,729,898)(2.7%) New Construction 73,446,246 .9% Net Change (142,283,652)(1.8%) FY 2010/11 Total $7,792,031,131 Proposed Millage At the July 19, 2011 Council meeting, Council approved Resolution 33, 2011, setting the tentative maximum operating rate at 5.7404, which is 2.72% below roll - back rate of 5.9008 Debt service rate was set at .1821, down from .1854 Total rate is 5.9225, down .05% from current year rate of 5.9254 As per Chapter 200.065 Florida Statutes, these rates may be lowered, but not raised during public hearings Effect on Homesteaded & Non -Homesteaded Property Owners Homesteaded Taxable Value Annual % of Total 1.5% increase Current Rate Proposed Rate Increase Properties in (After $50K Exemption)5.9254 5.9225 (Decrease)City of PBG $200,000 to $203,000 $1,185.08 $1,202.27 $17.19 65.62% $300,000 to $304,500 $1,777.62 $1,803.40 $25.78 13.08% $400,000 to $406,000 $2,370.16 $2,404.54 $34.38 7.21% 85.90% Taxable Value 2.72% decrease (avg. City-wide) $200,000 to $194,560 $1,185.08 $1,152.28 -$32.80 65.51% $300,000 to $291,840 $1,777.62 $1,728.42 -$49.20 13.78% $400,000 to $389,120 $2,370.16 $2,304.56 -$65.60 6.45% 85.74% FY 2012 Budget Strategy Personnel Costs Alternative Revenues Use of Reserves Personnel Costs Public Safety Pensions Required contribution next year is $7.8 million; was $1.4 million in FY 2002 Projected contribution in FY 2021 is $13.2 million Staff’s recommended revisions: One plan for both police and fire Opt out of Chapters 175 and 185 2.75% multiplier No COLA Pensionable earnings to include only base pay Personnel Costs Public Safety Pensions Staff’s recommended revisions (cont): Maximum benefit of 75% of average final compensation Raise retirement age to 59 with 10 years of service Eliminate service based retirement (20 yrs and out for police; 25 years and out for fire) Changes must be negotiated Per Cavanaugh Macdonald report, savings in future years should be approximately $2 million annually Personnel Costs PBA & IAFF contractual items currently being negotiated Freeze longevity for all employees Cap conversion of leave at 80 hours for IAFF (same for general, SEIU, and PBA) Reduce certification pay Eliminate VEBA contributions Alternative Revenues –Local Communications Services Tax Local Communications Services Tax is currently 1.5% Currently, 34 of 38 municipalities in PBC levy rates greater than PBG; 30 are at 5% or greater Recommended increase in rate to 5.22%; Council approved 3.5% rate on July 19, 2011 Will generate additional $860,000 next year (about $1.15 million for a full 12 months) Effect on average users: Rate applies to cell phone, land lines, internet and cable TV services Average Annual Bill Increase in Rate Annual Increase Monthly Increase $2,400 2.00% $48 $4 $3,600 2.00% $72 $6 Alternative Revenues -Consolidation of Services Consolidation of communications and dispatch operations with Town of Jupiter and Town of Juno Beach Increase of 14 employees and $1.3 million in costs (increases total employees next year to 450) Offset by $1.5 million of intergovernmental revenues Use of Reserves Use Amount Beginning Reserve Balance $21,864,542 Capital Outlay (1,195,000) Operating (799,796) Total Use of Reserves (1,994,796 ) Ending Reserve Balance $19,869,746 Summary of Significant Items No salary increases budgeted for General, SEIU, IAFF and PBA employees Freeze longevity for all employees at current levels; no future increases Cap Conversion of Leave at 80 hrs. per fiscal year for IAFF (same as general, SEIU and PBA) Revise the IAFF certification pay system Eliminate VEBA contributions Revise public safety pensions to achieve future savings Summary of Budget General Fund operating and capital expenditures total $66,059,973; increase of 1% from current year Total expenditures for all funds is $82,396,827; increase of .2% from current year The total budgeted expenditures and ending reserves for all funds is $107,718,653 Budget Summary Total All Funds -$107,718,653 BEGINNING ENDING FUND BALANCE REVENUES EXPENDITURES BALANCE GENERAL FUND 21,864,542 $ 64,065,177 $ 66,059,973 $ 19,869,746 $ SPECIAL REVENUE FUNDS Gas Tax 860,661 744,750 890,912 714,499 Recreation 707,684 2,900,690 3,309,664 298,710 Golf 216,289 1,500,000 1,446,321 269,968 Police Training/Grants 29,620 10,000 12,000 27,620 TOTAL 1,814,254 $ 5,155,440 $ 5,658,897 $ 1,310,797 $ INTERNAL SERVICE FUNDS Fleet Maintenance 469,629 2,437,185 2,573,960 332,854 Self-Insurance Fund 1,595,810 6,833,257 6,833,257 1,595,810 TOTAL 2,065,439 $ 9,270,442 $ 9,407,217 $ 1,928,664 $ CAPITAL PROJECT FUNDS Recreation Impact Fee 661,428 333,534 500,000 494,962 Police Impact Fee 132,143 62,942 - 195,085 Fire Impact Fee 52,948 126,632 70,250 109,330 Art Impact Fee 703,894 700 - 704,594 Road Impact Fee 1,134,422 274,716 700,490 708,648 PGA Flyover Capital Project - - - - Burns Road Capital Project - - - - TOTAL 2,684,835 $ 798,524 $ 1,270,740 $ 2,212,619 $ GRAND TOTAL 28,429,070 $ 79,289,583 $ 82,396,827 $ 25,321,826 $ What’s Next? First public hearing was set for September 8, 2011, at 7 PM, in the City Council Chambers This date and time will be published on the Notice of Proposed Taxes to be sent by the Property Appraiser in August Advertise Budget Summary and Notice of Hearing Final hearing will be held on September 22, 2011, at 7 PM, in the City Council Chambers What’s Next? Budget Oversight Committee drafts report for Council in August Final report issued in September Personnel Costs Analysis of savings with staff’s recommendations: Item Annual Cost Savings if Implemented 10/1/11 Savings if Implemented 1/1/12 Incentive & Certification Pay $664,660 $249,000 $186,750 Longevity 1,020,722 103,532 77,649 Conversion of Leave 330,000 105,333 79,000 Total $2,015,382 $457,865 $343,399 Personnel Costs Voluntary Employee Beneficiary Association (VEBA) Eliminate contribution Projected savings if implemented 10/1/11 $470,388 Projected savings if implemented by 1/2/12 $352,791