HomeMy WebLinkAboutMinutes BOC 042607I BUDGET OVERSIGHT COMMITTEE
2 April 26, 2007
3 MINUTES
4
5 The Budget Oversight Committee met on April 26, 2007, in the Council Chambers of the
6 Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida.
7 The meeting was called to order by Harvey Goldberg, Chair, at 8:35 AM.
8
9 L Roll Call
10 Members Present:
11 Harvey Goldberg — Chair
12 L. Marc Cohn — Vice Chair
13 Martin Cohen - Committee Member
14 Mark Veil- Committee Member
15
16 Members Absent:
17 John Chaplik — Committee Member
18
19 Also Present:
20 Hal Valeche - Council Liaison
21 Allan Owens - Finance Administrator /Staff Liaison
22 Sean O'Brien - Accounting Manager
23 Bob Bolton — Bolton Consultants
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25 IL APPROVAL OF MINUTES:
26 The minutes from March 22, 2007, were approved unanimously, 4 -0.
27
28 ULREVIEW OF FY 2006 AUDIT REPORT:
29 Allan Owens, Finance Administrator, provided an update for the Board. Financial
30 highlights of the 2006 Audit Report were as follows: Government -wide net assets
31 increased by $7.6 million to $89.6 million. This activity reflects a transfer to close the
32 Golf Enterprise Fund to eliminate deficit retained earnings. Fund level statements reflect
33 undesignated General Fund balance of $10.4 million. Recommendations to improve
34 financial management, accounting procedure and internal controls were reviewed. The
35 audit revealed that the Emergency Medical Services receivables and revenues were not
36 recorded on an accrual basis. Estimated receivables related to the accrual of Emergency
37 Medical Services fees have not been recognized as of September 30, 2006. It is
38 recommended that the City record Emergency Medical Services fees on an accrual basis.
39
40 IV. FY 2007 MID -YEAR BUDGET TO ACTUAL UPDATE:
41 Sean O'Brien, Accounting Manager, provided an update for the Board. General fund
42 revenues, Ad Valorem taxes account for 82% of total general fund revenues through the
43 end of the 2°d quarter. The current year- to-date revenues are $47,166,014.00. This figure
44 is 94% of the budgeted revenue received to date. Collected amounts are in line with
45 budgeted figures with three tax distributions remaining for the fiscal year. Franchise fees
46 total $2,249,111.00, 47% of the budget. Utility taxes exceed budgeted figures by 2.49%.
Budget Oversight Committee Meeting Minutes 042607 Page
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Occupational licenses totaled $1.3 million or 55% of total licenses and permit revenue
collected. The amount exceeded line item budget by 7 %. Building permits are on pace to
under perform budgeted figures by 28 %. Intergovernmental revenue includes federal and
state grants, one -half cent sales tax and state shared revenues. This is currently in line
with budgeted figures of 47 %. Charges for services include revenues from Emergency
Medical Services and fire inspection fees. These two revenues account for 96% of total
charges for services. This is currently in line with budget figures. Fine and forfeitures are
29% received. Investment income is 94% received. This is on pace to exceed the budget
by 50%. Miscellaneous is below budget figures by approximately 24 %. General
government has spent 55% due to budgeted expenditures for professional services. City
Council has spent 45% which is in line with budgeted figures. Administrative services
has spent 41% of budgeted figures. Economic Development has spent 27% of budgeted
figures due to $64,000 which has not been spent to date. Transportation has spent 0% of
budgeted expenses. Budgeted expenditures are related to the miscellaneous revenue for
construction and donation for the pubic transit system which will most likely not be
collected during fiscal year 2007. Housing has spent 0% of budgeted expenses. Budgeted
expenditures are related to the miscellaneous revenue for contribution and donation for an
affordable housing initiative which will most likely not be collected during fiscal year
2007. Information Services has spent 43% of budgeted expenses. There's an additional
7% encumbered which would bring expenditures in line with the budget. City Clerk has
spent 43% of budgeted expenses. This is below budgeted figures by 6.64% due to
temporary vacancies in the department during the first half of the fiscal year. Legal
services spent 33% of budgeted expenses. This is below budgeted figures due to
professional services which were only 180/o expended. Public relations spent 36% of
budgeted expenses. Human Resources spent 40% of budgeted expenses which is 9.38%
below budget due to temporary vacancies during the first part of the fiscal year. Finance
spent 46% of budgeted expenses. General Services spent 65% of budgeted expenses. This
is due to 50% insurance expenditures of $1.2 million that were 100% paid at the
beginning of the year. Growth Management spent 67% of budgeted expenses. This
exceeds 50% due to budgeted expenditures for professional services that were 100%
spent during the first part of the year. Public Safety spent 45% of budgeted expenses
which is in line with the budget through the end of the second quarter. Police spent 44%
of budgeted expenses which is in line with the budget through the end of the second
quarter. Fire has spent 46% of budgeted expenses which is in line with the budget
through the end of the second quarter. Culture and Recreation has spent 43% of budgeted
expenses which is in line with the budget through the end of the second quarter. Physical
Environment (Administrative Services, Facilities Maintenance, Stormwater Maintenance,
Street Maintenance and Construction Maintenance) spent 43% of budgeted expenses
which is in line with the budget through the end of the second quarter. Capital Outlay
spent 34% of budgeted expenses. There is an additional 33% of budgeted expenditures
that is committed. Debt service is 44% of budgeted expenses. Expenditures are based on
scheduled payment from amortization schedules. This amount will be in line with the
budget at the end of the year,
Budget Oversight Committee Meeting Minutes 042607 Page 2
I V. FY 2007 END -OF -YEAR PROJECTIONS:
2 Allan Owens, Finance Administrator, provided the Board with an update. The fund
3 balance as of October 1, 2006, was $19,569,601. The estimated fund balance projected
4 for September 30, 2007, is $21,554,628.
5
6 VI. UPDATE ON FY 2008 BUDGET PROCESS:
7 Allan Owens, Finance Administrator, stated that the initial departmental requests are
8 being compiled for the City Manager's review. The initial reviews will be completed in
9 the next two weeks. Fiscal year 2007 revenues and expenditures estimated and revenue
10 estimates for 2008 are being developed. In early June budget books will be distributed to
11 City Council and the Budget Committee. Finance will continue to monitor action taken
12 by the State Legislature regarding tax reform. The Senate Proposal PSC /SB 1020 limits
13 fiscal year 2007 /2008 taxes to the greater of the ad valorem revenue levied in 2006/2007
14 or the 2005/2006 levy increased by new construction and Florida per capita income
15 growth for two years. In 2008/2009 revenues are limited to the 2007 /2008 levy, increased
16 by new construction. In 2009/2010 increases in tax revenues are limited to growth in
17 population and growth in Florida per capita income. Preliminary estimates by staff
18 indicate approximately $2.2 million would need to be cut in 2007/2008.
19
20 Miscellaneous Item: Finance will continue to monitor the status of the Fire Department
21 pension and their request for benefit enhancement. Proposals for insurance consultants
22 received this week to assist in RFP design.
23
24 VII: RETIREE HEALTHCARE ACTUARIAL REPORT:
25 Bob Bolton, Bolton Partners, reviewed the report with the Board. Governmental
26 Accounting Standards Board (GASB) does not require OPEB (Other Post Employment
27 Benefits) to be funded but a liability would continue to accrue. The City is not required to
28 implement a trust until the fiscal year beginning October 1, 2008. The unfunded liability
29 is not required to be funded. If the City funds the annual required contribution, payments
30 must be made to a trust. One incentive to fund the trust is the discounted rate used in trust
31 vs. general government assets. The annual required contribution is expected to increase to
32 4 -5% per year. The unfunded accrued liability is $2.1 million dollars as of October 1,
33 2007. Amortization of this liability is $118,000 over 17 years. If not funded, the unfunded
34 accrued liability increases to $3.24 million dollars.
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VIILADJOURNMENT:
With no further business to discuss the meeting adjourned at 10:29 a.m.
APPROVED:
Harvey o dberg, Chair
p(,e ice,
L. Marc Cohn, Vice Chair
John Chaplik, Committee Member
Martin Cohen, Committee Member
72x -e
Mark Veil, Committee Member
Attest:
-A w&c dtm-,
Annette Tucci
Municipal Services Coordinator
NOTE: These summary minutes are prepared in compliance with 286.011 F.S. and are
not verbatim transcripts of the meeting. A verbatim audio recording is available from the
Office of the City Clerk.
All referenced attachments on file in the City Clerk's office.
Budget Oversight Committee Meeting Minutes 042607 Page
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