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HomeMy WebLinkAboutAgenda BOC 081111AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE Thursday August 11 , 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 VI. ITEMS BY COUNCIL LIAISON VII. ITEMS BY STAFF LIAISON 1. Discussion of Committee report to Council VIII. OLD BUS I NESS IX. NEW BUSINESS X. COMMENTS BY PUBLIC XI. COMMENTS BY THE BOARD XII. ADJO U RNMENT P Budget Advisory Committee Report to the City Council The Budget Advisory Committee is continuing the precedent set in prior years by presenting to the City Council a summary of comments and suggestions from the meetings the committee has had leading up to the Council’s consideration of the 2012 Budget. and thoroughness of staff ‘ Council and for review by in preparation of the annual budget that has been pr the committee. The methods used to make the capital expenditures are logical, prudent and in ke Once again this year we believe that staff h e past which are needed The committee is concerned that real es time soon. This is resulting in this year and into the fore standards of the city The committee maintaining the high nancial strategy, policy and n by staff and the elected most recent meeting of 5.74 (plus the millage rate level, the use of reserve funds and es. The Council must always look to the impact on future s the continuing effort to have resident budget meetings ition to those held at council chambers to insure that the cant number of comments from the residents about the direction the budget process is taking. This is especially important in these current economic times when input from diverse sections of the city will enable the city council to arrive at the best decisions for all residents of the city and not a select few voices. 3. The committee intends to keep on its agenda for the coming term further discussion of a more detailed policy for the level of and use of the monies in the reserve fund. The committee is in agreement that the fund must stay at or above the 15% level due to the continued uncertainty of the economy and the need for “rainy day” expenditures. The guidance should be general enough so as to not hinder future councils but that there be enough understanding of what the possibilities could be. Some examples are to use the fund for non-reoccurring expenditures such as capital expenditures, catch up payments to a pension fund, or special projects. This would allow the operating budget to focus on the required expense to operate the city at the level of service the citizens expect. 4. The committee suggests that the continued reliance on ad valorem taxes to provide the revenue necessary may no longer be prudent. The state mandates a maximum millage rate of 10.0 and the city is now almost 60% of the way towards continue by looking to fees for waste c , utility tax, increasing communications service tax, all of which components of the revenue side of the budgets of most all communities. By considering such fees as revenue so by other usage fees. diversity it revenue e services to Juno Beach city council decision to increase the ttee had recommended an increase to increase not as significant which is that the city is in a very favorable location having two h organizations at our door-step. These organizations future for new firms to come to the area as spin-offs ance the value of the City of Palm Beach Gardens in committee suggests that the budget include economic development funds that can be used to attract or retain companies which have a substantial cascading effect on both jobs and tax revenue possibilities. 7. Prior and the current committees have been involved in discussion regarding the pension plans underfunding and the salary structure of the police and fire contracts. Recommendations have been made due to the concern over the sustainability of the contract’s liability that has become a significant factor in the City’s finances. The city is entering a period when both the police and fire i c 8. 9. contracts are being negotiated. The committee recommends that the negotiations result in relief in the rate of growth of both salaries and benefits and pension that will help to stabilize the cost to the city of these major cost item. The major category of expenses for the city is staffing. Since fiscal year 2007,78 positions have been removed from the employment rolls either by eliminating budgeted but vacant positions, instituting a voluntary separation program, transferring employees to a special revenue fwnd, and finally through implementing workforce reductions. The total effect over those years is to reduce the city workforce from 514 to 436 employees. This is a commendable effort which has reduced expense but now appears that further reduction in the wo 11 have to be done very cautiously as services expected by the resi e noticeably affected. There has been an addition to the city Northern Regional Communicatio is now a cost sharing arrangement for the city as discuss The budget advisory committee evaluate the budgeted expendit des its citizens. When there are limited resources, insure that services pr expenditure for the ce live outside that footprint, tion of the North Palm by the Improvement ce and also pay fforded the benefit of the could be taxed directly to only those de this report to the City Council and any of the suggestions and comments Bernard Pettingill Regular Member Marilyn Lew Jacobs Regular Member Phillip Woodall Regular Member