HomeMy WebLinkAboutAgenda BOC 051712AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COMMITTEE
Thursday May 17 , 201 2 , 8:3 0 AM
CITY COUNCIL CHAMBERS
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL :
Regular Members
Phillip Woodall Chair
Bernard Pettingill Vice -Chair
L. Marc Cohn Regular Member
Marilyn Lew -Jacobs Regular Member
Mark Marciano Regular Member
IV. ADDITIONS, DELETIONS, MODIFICATIONS
V. APPROVAL OF MINUTES :
1. April 20 , 2012
VI. ITEMS BY COUNCIL LIAISON
VII. ITEMS BY STAFF LIAISON :
1. FY 2013 Budget Update
VIII. OLD BUS I NESS
1. Discussion of prior year Committee Report
2. Discussion of Fund Balance Policy
IX. NEW BUSINESS
X. COMMENTS BY PUBLIC
XI. COMMENTS BY THE BOARD
XII. ADJO U RNMENT
Budget Oversight
Committee
May 17, 2012
Update on Fiscal Year 2013
Budget Process
Preliminary Property Values
Estimates were provided by Gary Nikolits at
PBCCMA meeting last month
Next estimate will be issued by Property Appraiser
June 1st
April Estimates City’s Prior
Estimates
Change From
City
Estimates
Prior Year Total $7,792,031,131 $7,792,031,131
Est. Current Year 7,767,817,382 7,636,190,508 1.7%
Est. New Construction 52,556,965 35,000,000 50.1%
Est. Total For FY 2013 $7,820,374,347 $7,671,190,508 1.9%
Collective Bargaining Updates
1.Update on IAFF
Tentative agreement reached with IAFF on 4/13/12
Ratified by 79 -4 vote; approved by Council
5/3/2012
Pension ordinance to be written May -June and
approved by Council in July and August
Estimated annual savings from pension and
contract changes = $1,900,000
Effective for three year period beginning 10/1/2012
Collective Bargaining Updates
2.Highlights of IAFF contract:
Maximum pension benefit reduced from 99% to 75% of
average final compensation
Compensation will exclude overtime and accumulated
leave payouts
COLA reduced from 3% to 1.5%
Increasing employee contribution to about 11% to allow
City to use all of Chapter 175 money (about $500,000)
to offset our cost, rather than going to Share accounts
Total Savings estimated at $1,500,000 annually
Collective Bargaining Updates
2.Highlights of IAFF contract (cont.):
Eliminates City’s contribution to VEBA (saves
about $253,000 annually)
Freezes Longevity payments; new hires will not be
eligible to receive (saves about $34,000 annually)
Caps Conversion of Leave (saves about $68,000
annually)
Provides for 0% salary increases for FY 2012 thru
FY 2015
Collective Bargaining Updates
1.Update on PBA
Still at impasse
Special Magistrate hearing was held on 4/23/2012
Legal briefs submitted by attorneys
Special Magistrate opinion due 5/31/2012
Issue will then be decided by Council (June or July)
Ordinance to be written and approved by Council in
August and September
Questions?
Budget Oversight
Committee
May 17, 2012
Review of City Fund Balance
Policy
Background
The Governmental Accounting Standards Board
(GASB) recently issued Statement No. 54 Fund
Balance Reporting and Governmental Fund Type
Definitions
Requires the City to adopt a formal policy that defines
and establishes the following new components of
Fund Balance: Non -spendable, Restricted,
Committed, Assigned and Unassigned
Policy must also establish guidelines for the use of
Fund Balance
Summary of Policy
Goal of the City is to achieve and maintain an
Unassigned Fund Balance in the General Fund at
fiscal year end of not less than 17% of expenditures,
which represents approximately two (2) months’
operating expenditures
If the Unassigned Fund Balance at fiscal year end falls
below the goal, the City shall develop a restoration
plan to achieve and maintain the minimum fund
balance
Summary of Policy
Disbursement of funds from Unassigned Fund Balance in excess
of the 17% target shall be authorized by an ordinance of the City
Council and may be approved by inclusion in the approved
annual budget
Funds shall be used only for non -recurring expenditures such as
capital, grants, one -time programs, emergency and disaster
relief, budget stabilization reserve in the case of revenue
declines, unanticipated expenditures and/or unfunded mandates
However, a budget surplus in a given year may be used to fund
operating expenses in the following year
Summary of Policy
Example: a budget surplus in a given year may be used to fund
operating expenses in the following year
Revenue – FY xxx $66,000,000
Expenditures – FY xxx (65,200,000)
Surplus that may be used to fund operating
expenditures in FY yyy , if Unassigned Reserves are
greater than 17%
$800,000
Summary of Policy
Disbursement of funds from Unassigned Fund
Balance below the 17% target shall be authorized by
an ordinance of the City Council and may be approved
by inclusion in the approved annual budget
Funds shall be used only for emergency and disaster
relief, or as a budget stabilization reserve in the case
of revenue declines, unanticipated expenditures
and/or unfunded mandates
City shall develop a restoration plan and attempt to
replenish these funds over a period not to exceed five
(5) years
Questions?
BUDGET OVERSIGHT COMMITTEE MEETING PAGE
04 -20 -12
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CITY OF PALM BEACH GARDENS 1
BUDGET OVERSIGHT COMMITTEE 2
REGULAR MEETING 3
April 20 , 201 2 4
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I. CALL TO ORDER 6
The regular mee ting was called to order at 8:35 a .m . by Chair Woodall . 7
II. PLEDGE OF ALLEGIANCE 8
III. ROLL CALL 9
PRESENT: Chair Phillip Woodall, L. Marc Cohn, Marilyn Lew -Jacobs, Mark Marciano. 10
ABSENT: Vice -Chair Bernard Pettingill . 11
ALSO PRESENT : Vice Mayor, Council Liaison Robert Premuroso; Finance Administrator, 12
Staff Liaison Allan Owens; Accounting Manager, Sean O’Brien . 13
IV. ADDITIONS, DELETIONS, MODIFICATIONS 14
None. 15
V. APP ROVAL OF MINUTES 16
Committee Member Cohn made a motion to approve the March 22, 2012 Minutes. 17
Committee Member Marciano seconded . 18
Motion passed 4 -0. 19
VI. ITEMS BY COUNCIL LIAISON. 20
None. 21
VII. ITEMS BY STAFF LIAISON. 22
1. FY 2012 Budget Update 23
Presentation by: Finance Administrator, Staff Liaison Allan Owens . 24
Discussion ensued regarding auditing. 25
2. Review of the 2011/12 Budget Committee Report to Council. 26
Presentation by: Accounting Manager, Sean O’Brien. 27
Discussion ensued regarding tax exempt projects 28
Committee Mem ber Lew -Jacobs left the meeting at 9:18 a.m. 29
VIII. OLD BUSINESS 30
Discussion ensued regarding utilizing the Budget Advisory Committee Report , dated August 17, 31
2011, at each Budget Oversight Committee Meeting as a reference. 32
IX. NEW BUSINESS 33
None. 34
X. COMMENTS BY THE PUBLIC 35
None. 36
X I . C OMMENTS BY THE BOARD 37
None. 38
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BUDGET OVERSIGHT COMMITTEE MEETING PAGE
04 -20 -12
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X I I. ADJOURNMENT 1
Committee Member Cohn made a motion to adjourn the meeting . 2
Committee Member M arciano seconded . 3
Motion passed 3 -0 . 4
Chair Woodall Adjourned the meeting at 9:36 a.m. 5
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APPROVED : 7
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12 Phillip Woodall, Chair 13
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Bernard Pettingill , Vice Chair 17
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L. Marc Cohn 21
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Marilyn Lew -Jacobs 25
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Mark Marciano 29
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ATTEST : 34
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38 Donna L. Kramer 39
Municipal Services Coordinator 40
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NOTE: T hese minutes are prepared in compliance with 286.011 F.S. and are not verbatim transcripts of 44
the meeting. A verbatim audio recording is available from the Office of the City Clerk. 45
All referenced attachments on file in the Office of the City Clerk . 46
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