HomeMy WebLinkAboutAgenda Council Agenda 070899 WorkshopAft those wishing to address the City Council need to complete the necessary form (supply located in back
of Council Chambers) and submit same to the City Clerk prior to the meeting being called to order.
CITY OF PALM BEACH GARDENS
CITY COUNCIL WORKSHOP MEETING
JULY 8,1999
7:00 P.M.
I. PLEDGE OF ALLEGIANCE
If. ROLL CALL: Mayor Joseph R. Russo, Vice Mayor Lauren Furtado, Councilman Eric Jablin
Councilman David Clark and Councilman Carl Sabatello.
III. ITEMS FOR DISCUSSION:
1. Proposed Revisions to 1999/00 Fiscal year Budget
2. Discussion of Alternatives
3. Discussion of a Preliminary Tax Rate
IV. ADJOURNMENT
In accordance with the Americans with Disabilities Act and Florida Statute 86.26, persons with disabilities
needing special accommodations to participate in this proceeding should contact James Waldron, Jr., no later
than 5 days prior to the proceeding at telephone number (561) 775 -8255 for assistance; if hearing impaired,
telephone the Florida Relay Service Numbers (800) 955 -8771 (TDD) or (800) 955 -8700 (VOICE), for
assistance. If a person decides to appeal any decision made by the Council, with respect to any matter
considered at such meeting or hearing, they will need a record of the proceedings, and for such purpose, they
may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based.
Memorandum
TO: Bobbie Herakovich, City Manager
FROM: Kent R. Olson, Finance Director KRO
DATE: July 7, 1999
RE: Changes in Fiscal Year 1999/2000 Budget
The following paragraphs summarize the changes to the Draft FY2000 Budget
since the June 28 Budget Workshop meeting.
REVENUES
Property Taxes (General Operating) - Total increase - $200,000
Increased general operating revenue by $200,000.
EXPENDITURES
Administration - Total reduction - $30,717
Reclassified Deputy City Clerk back to Administrative Secretary - $20,382.
Deleted membership for Deputy City Clerk - $85.
Added membership to American Records Management Association for Imaging
Specialist - $150.
Deleted election costs for Bond Referendum - $6,000.
Removed computers for new personnel - $4,400.
Human Resources - Total reduction - $2,000
Reduced advertising - $2,000.
Finance - Total reduction - $15,598.
Removed Accountant position - $14,568.
Deleted memberships for accountant - $30.
Deleted furniture for accountant - $1,000.
General Services - Total reduction - $50,000.
Reduced Garbage Collection - $50,000.
Police Department - Total reduction - $68,310
Move out of Weiss Center by January 31, 2000 - $9,600.
Road Patrol overtime - $43,060.
Traffic overtime - $6,459
Road Patrol bullet proof vests and uniforms - $7,191
Accreditation travel - $2,000.
Fire Department - Total reduction - $99,685
Tuition for Chief and Deputy Chief - $4,000.
Portable Radios - $6,600.
Building and Inspection training - $500.
Hazmat recovery supplies - $2,000.
Asset and inventory control system - $6,585.
Rescue refurbishment - $80,000.
Growth Management - Total reduction - $11,634
Summer intern - $4,134
Landscape and Irrigation plan for PGA Flyover - $7,500
Parks and Recreation - Total reduction - $24,438
Fireworks - $6,000.
Maintenance I - $29,203.
Additional part time salaries - $10,765.
Public Works - Total increase - $5,573
Move two positions from Mowing to Drainage.
Additional contract for mowing - $45,000.
Eliminate two general maintenance positions - $39,427
Fleet Management Fund - Total reduction - $48,686
Additional fuel - $22,000.
Eliminate Maintenance IV and General Maintenance position - $70,686.
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1999/2000 Trim Notice
Taxable Value
99/00 Values
1 Current Year Taxable Real Property
3,244,992,013
2 Current Year Taxable Personal Property
271,815,655
3 Current Year Centrally Assessed
868,603
4 Current Year Gross Taxable
3,517,676,271
5 Net New Taxable
80,078,069
6 Current Year Adjusted Tax Value
3,437,598,202
7 Prior Year Gross Taxable Value
3,300,408,065
8 Prior Year Millage
3.72650
9 Prior Year Ad Valorem
12,298,971
10 Current Year Rolled Back
3.57775
11 Current Year Proposed
3.90880
19 Current Year Aggregate
12,585,366
20 Total Ad Valorem
13,749,893
21 Current Year Proposed Millage
3.90880
22 Percent Change
9.253%
Debt Service
0.408000
2•
Memorandum
TO: Bobbie Herakovich, City Manager
FROM: Kent R. Olson, Finance Director Kko
DATE: July 7, 1999
RE: Utility Taxes
I have compiled the following information regarding the possible implementation of a
utility tax on electric, water and gas(including natural gas and propane) sales as well as on
telecommunications. Due to notification requirements, the implementation of a utility tax will
take approximately six months from the date an ordinance is adopted until the tax is first added to
a utility bill. For example, if the City were to adopt an ordinance in September, the
implementation date would be April 1, 2000. The chart below shows how much would be raised
annually from a utility tax on each of the following services.
Utility Tax Rate
Electric
Telephone
Water
Gas
Total
1%
$ 450,000
$110,000
$ 95,000
$ 7,000
$ 662,000
2%
$ 900,000
$220,000
$190,000
$14,000
$1,324,000
3%
$1,350,000
$330,000
$285,000
$21,000
$1,986,000
I also conducted a brief survey of some other taxing bodies in Palm Beach County to
determine what utility tax rates they were charging, if any. The maximum levy for a utility tax is
10 %. However, the telecommunications tax can be levied on local service up to a maximum of
10 %, or on all telecommunications providers up to a maximum of 7 %. Most jurisdictions levy the
tax upon all providers due to the greater revenues generated. Few jurisdictions charge a utility tax
on water, most likely due to the fact that most municipalities have their own water utility. The
results of that survey are presented on the next page.
q.
Taxing Body
Electric
Telephone
Water
Gas
Boynton Beach
10.0%
7%
0%
10.0%
Delray Beach
9.7%
7%
0%
8.7%
Juno Beach
8.0%
7%
0%
8.0%
Jupiter
6.0%
6%
6%
6.0%
North Palm Beach
9.0%
6%
0%
9.0%
Palm Beach
10.0%
7%
10%
10.0%
Palm Beach County
10.0%
7%
0%
10.0%
Riviera Beach
10.0%
7%
10%
10.0%
Tequesta
9.0%
9%
9%
9.0%
Wellington
10.0%
7%
0%
10.0%
Advantages/Disadvantages
The main advantage of a utility tax is its elasticity, or its ability to grow as the economy
grows. As with electric franchise fees and sales tax revenues, utility tax collections will increase
as the City continues to develop. As the City ages, it will need more elastic revenue sources and a
more diverse revenue base to avoid relying too heavily upon on property taxes to fund services.
The utility tax can be implemented and monitored with very little administrative costs, making it a
very efficient tax to collect.
The main disadvantage to the utility tax is the fact that is not tax deductible for federal
income tax purposes.
Please let me know if there are any questions regarding the utility tax.
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