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