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HomeMy WebLinkAboutMinutes BOC 061405BUDGET OVERSIGHT COMMITTEE June 14, 2005 Minutes The Budget Oversight Committee met on June 14, 2005 in the Council Chambers of the Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida, The meeting was called to order at 2:05 P.M. I. Roll Call Members Present: John Chaplik and Martin Cohen Also Present: Mary Anderson Alan Owens Councilman Hal Valache II. Resignation of Maureen Maquire Chairperson, John Chaplik, stated that due to a conflict with her employer, Maureen Maquire had to resign from the board. He then nominated Martin Cohen as Vice Chair and this passed in a 2 -0 vote. Cohen — Yes Chaplik — Yes III. Approval of Minutes The Board approved the minutes from April 19, 2005 and May 19, 2005 in a 2 -0 Vote. Chaplik — Yes Cohen — Yes IV. Overview of Proposed FY 2006 Operating and Capital Improvements Budget Allan Owens presented a PowerPoint presentation regarding the FY 2005 Budget Overview. Alan stated that the budget and account format will be consistent with last years budget with the exception of the Golf Course fund. This was an enterprise fund and will now become a special revenue fund. Alan went over the City's Vision Statement and the Strategic Planning Retreat that took place in April 2005, and discussed how they relate to this year's proposed budget. He also discussed the Strategic Management Plan and how the objectives are consistent with the City's current Vision Plan. Allan gave a breakdown of the total of all funds including; special revenues, general fund, internal service fund and capital projects. He went through the analysis of general fund budget changes and compared the changes from last year to the New Year. He also gave a summary break down of all the funds by department and also went over the significant items that affect the budget such as; no charges for solid waste collection, no utility service taxes, no storm water assessments, no charge in communication service tax rate and increase in salaries pre union contracts. There was also a 15% increase in insurances including: health, worker's comp, liability and property insurance. Included in the significant items were also the new positions that will be funded in the new budget. Allan discussed the reserve and stated he is projecting it will be at 11% of expenditures. He stated the policy guidelines are between 5 and 15 %. The Board expressed some concerns about the reserve not being high enough. They are going to make this part of their recommendation to City Council. The board also stated that they would like the City to consider hiring temporary employees for some of the new positions in the building department. They felt that when growth in the City slows down there will not be a need for these employees. By hiring temporary help the City is not locked into keeping the employees if it is not busy. They are also going to add this information in their recommendation to City Council. Allan Owens went over the capital expenses that are planned for the next budget year. These included; Al Beautification (50% grant), renovating the Growth Management Building, adding more rescue units, adding more building department vehicles and adding an automated phone system for the building department. Allan also discussed the 2005 property valuation which includes the assessed property valuation from the PBC Property Appraiser's office. There was also discussion about the special revenue funds including the recreation programs and golf and the gas tax. Allan explained that the capital projects will be funded by impact fees and went over the projected impact fees for the New Year. He stated the City is expecting $21,930,295 in impact fees. The expenditures will include: $1,000,000 from recreation impact for Howell Watkins School restrooms /lighting, $420,000 from recreation impact for Sandhill Crane Park, $400, 000 from recreation impact for City Park Phase II, $400,000 from recreation impact for Lilac park, $200,000 from recreation impact for skate park lighting, $700,000 from police impact for construction of EOC facility, $365,000 from police impact for mobile and portable radios, $425,000 from fire impact for a new fire engine and $500,000 from road impact for railroad quiet zone. There was discussion regarding the maintenance costs for the PGA Flyover. He stated the maintenance and lighting together will cost approximately $400,000 and the total costs will be paid from ad valorem revenue. Martin Cohen had a concern about spending $400.000 for maintaining the flyover. He wanted to know if the City knew what it was going to cost before committing to the flyover. Allan stated that this was part of the capital improvement process and they do they best they can to factor in future expenses. Allan Owens discussed with the Board the five year projections. He stated the assumptions are 6% from growth from re- assessment of existing property, average $225 million per year from new construction, 3% for average growth of other revenue, and 3% inflation rate for operating expenditures. He also discussed the inflation factor for personnel and the capital outlay submitted by each department in their five year plans. Allan discussed the estimated for health insurance and went over new positions the background of the position and why each position is needed. There was concern among the board as to what will happen to these new positions when the City's growth stops and the Board suggested filling some of the positions with temporary employees. Allan stated that this option was discussed by Staff and they feel, from past experience, the quality of temporary worker is not the same as hiring a full time employee. There was discussion about the recommendation to hire 9 new firefighters. Allan stated that there will be a significant savings in overtime by hiring new firefighters as opposed to having existing firefighters working overtime. There was also discussion about the general employee's cost of living and merit increases for the year. Allan went on to discuss the general and the projected reserves for the budget year. He discussed capital improvements. Some of the capital improvements include Lake Catherine, PGA Park, BRCC Renovation, Golf course renovations. Martin Cohen recommended increasing the reserve because they feel the City's growth is going to stop and they would like to see the City have more of a reserve on hand. They would also like to see the City do a 10 year projection. Allan also went over the Special Revenue funds, Gas Taxes, and the expenditures for recreation and the PGA Flyover. There was additional discussion regarding retirement benefits and insurance benefits for employees. Allan stated that the City is moving toward a defined contribution plan. Employees will have a choice of one plan but will not be able to change once they pick a plan. The Board thanked Allan for his presentation. They would like to see the city plan for the future and do a 10 year projection instead of 5 years. There was also discussion about the possibility of having an internal auditing department. At the next meeting the Board will have a memo of their recommendations for the budget to be presented to City Council. V. Adjournment With no further business to discuss the board adjourned at 3: 48 PM JoA Chaplik, airman Martin Cohen, Vice Chairman Attest: Susan Bell, Public Information/ Recording Coordinator