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