HomeMy WebLinkAboutAgenda BOC 082610AGENDA
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COMMITTEE
Thursday August 26, 20101 8:30 AM
CITY COUNCIL CHAMBERS
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL:
Regular Members
L. Marc Cohn Chair
Kenneth Menard Vice Chair
Bernard Pettingill Regular Member
Phillip Woodall Regular Member
Vacant Regular Member
IV. ADDITIONS, DELETIONS, MODIFICATIONS:
V. APPROVAL OF MINUTES
1. July 22, 2010
VI. ITEMS BY COUNCIL LIAISON
VII. ITEMS BY STAFF LIAISON
1. Review of Annexation
2. Recreation (Aquatics) Cost Recovery & Participation
3. Finalize Committee report
VIII. OLD BUSINESS
IX. NEW BUSINESS
X. COMMENTS BY PUBLIC
XI. COMMENTS BY THE BOARD
XII. ADJORNMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
CITY OF PALM BEACH GARDENS
BUDGET OVERSIGHT COMMITTEE
REGULAR MEETING
JULY 22, 2010
L CALL TO ORDER
The regular meeting was called to order at 8:40 a.m. by Chair L. Marc Cohn.
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
PRESENT: Chair L. Marc Cohn, Vice Chair Kenneth Menard, Bernard Pettingill, Phillip A.
Woodall.
ABSENT: Brandon Dorsey.
ALSO PRESENT: Vice Mayor, Council Liaison Robert Premuroso; City Manager Ron
Ferris; Deputy Finance Administrator, Alternate Staff Liaison Mary Anderson -Pickle.
IV. ADDITIONS, DELETIONS, MODIFICATIONS
None.
V. APPROVAL OF MINUTES
Bernard Pettin2ill made a motion for approval of the June 24, 2010 minutes.
Chair Cohn seconded.
Motion passed 4-0.
VI. ITEMS BY COUNCIL LIAISON.
None.
VII. ITEMS BY STAFF LIAISON
1. FY 2011 Budget Update
Staff Presentation: Deputy Finance Administrator Mary Anderson -Pickle.
VIIL OLD BUSINESS
None.
IX. NEW BUSINESS
Preparation of the Annual Budget Oversight Committee report for City Council.
X. COMMENTS BY THE PUBLIC
None.
XI. COMMENTS BY THE BOARD
None.
(The remainder of this page intentionally left blank.)
BUDGET OVA GHT COM M I TTEE M ETI NG
07(22(10
PAGE 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
XII. ADJOURNMENT
Chair Cohn made a motion for adjournment.
Bernard Pettin2ill seconded.
Motion passed, 4-0.
The meeting adjourned at 9:47 a.m. The next regular meeting will be held August 26, 2010.
APPROVED:
L. Marc Cohn, Chair
Kenneth Menard, Vice Chair
ATTEST:
Donna M. Cannon
Municipal Services Coordinator
1�
NOTE These minutes are prepared in compliance with 286.011 F.S and are not 66'rtk QmfI"ram a2
N &§64 ! 6s'rLk 4 r $ 'rsl' dri 4+4 Ask" N h E-I's o2 N / JtF/ �' ! szs'rs■I'sr
M A s■(l no 4 -6 N 0:1 ce of the City Clerk.
PAGE 2
POTENTIAL ANNEXATION
EVALUATION
BUDGET OVERSIGHT COMMITTEE
AUGUST 25, 2010
■ Process of annexation
■ Overview of Areas
6
,c
z
1
1
-
ac i
i
•�_.
�1'j
s........... .. • 1
� .
y sF.w
—
.. ........
...y
pp
LO
7-1
1
_ .�'.•IJ IY1_
MAP A.4, POTENTIAL FUTURE ANNEKATION
City of Palm Beach Gardens
Palm Beach County, Florida
_ _
WY
4 j
lu
A .41F
�K
&a TER
Romd!.RS ST
.A __ Wffk(+CT ~
APPE.41111
-RAY
,jar
&ME M IM, M'M EM.
00
H A
-Al
;_AGQNA Dft
IWAMP-IMA mi
o Bolz jqrAy
a I ME Ems ir
T.
R W
IR
LA Kt
MAIM;
ORO—
L
it
ANNEXATION
■ Florida Statutes Chapter 171(Section. 042)
Contiguous
Compact
Urban Services Report
■ Voluntary
■ Legislative
■ Involuntary— Referendum
Vote
Special Elections
Annexation Referendum Schedule
■ Complete Urban Services Report
Department heads
City Council
Submit to PBC
■ Adoption of Referendum Language &
Annexation Ordinance
■ Supervisor of Elections
■ Referendum — Si% required
Effective Date
■ Registered Voters
Potential Revenue
Estimated FirstYear Revenue
Revenue Sourct
Ad Valorem Taxes
One half cent sales tax
Franchise Tax (6%)
Communications service tax (3..5%)
TOTAL
* Based on an estimated population
estimated s
s829,981
$3.001000
$929,981
Cost/Benefit Analysis
■ Expenditures
General Government Services — Police, Fire, Code
Enforcement, Administration, Parks and Recreation
Infrastructure improvements
Infrastructure maintenance
■ Revenue
Ad Valorem Taxes
One half cent sales tax
ii Communications Service Tax
Franchise Tax
Road Conditions
-T 31 4L
tot.
04-
11K
ALONG NOW N LIPS IM VD • 4 mug,
.�;
'R*
0
1 k? emy. ro, ff a 0=1 0,
Has several
Substandard
conditions
Has more than
one substandard
condition
Has one
substandard
conditions
Generally meets
standards
•
y je} 116Wa
OL--
Has several
Substandard
conditions
Has more than
one substandard
condition
Has one
substandard
conditions
Generally meets
standards
Water - No Service
UNINCORPORATED AREAS ALONG NORTHLAKE BLVD -AREAS NOT COVERED BY SEACOAST
PALM BEACH FLORIDA FPvt
D 190 380 780 1.1�k� �1.5Zu
i agontl
+m buti]N ARG i �M1all C/rL 6�b Aft'
nvr trwwar,u.eaa -- -wsna caramm mcas*
+.nov.�on yea
yy `Sim .it
a+uer�e.Y�.cyr•�.
1'!'� ALH
I
1
Sewer - No Service
r,
rzm
�R
A k I I,)R WAY
1
�
sr
r_�
� r
.' M T 1
RE LA1C1=pR
r !
lk
p UNINCORPORATED AREAS ALONG N0RTHLAHE ALVD -AREAS NOT COVERED BY SEACOAST
•�y CITY OF PALM BEACH GARDENS Feet
PALM BEACH GARDENS, FLORIDA 0 160 1.51-0
WRQµ••- �C- E AO_AN CT�
'^xkK LANA ALLA•
r-
x
F +4 r U A
r �'z�r�;'PAy�DR..
�nrcr��, �'•
��� MM]N16110rM#�'
Lepr ntl
-xn� w1M Mlnf��CCk S.ROSVOF+TA 6i Pf.5.L..
� ww.on raw
Other Considerations
■ Non -conforming uses
■ Non -conforming structures
■ Non -conforming signage
■ Water craft/RV Storage
■ Lack of enforcement of existing regulations
■ Marketing annexation benefits
Ad Valorem (w/Homestead
exemption) Assessed Value
_ $143, 969
Divide assessable value by
loon
Non -Ad Valorem
(Solid Waste)
Non -Ad Valorem
(NPCCID)
Communications Tax
(Phone $5o month)
(Cellular $5o month)
(Cable $6o/month)
Utility Taxes (Electric Bill
$125/month) *
TOTAL
143.969 143.969 + 430.00
X 19.55 = $2814.59 X 22.54
$218.00 $104.00-$114.00
$392.84 $392.84 No difference
Total Bill +Total Bill x 50/6 = Total Bill +Total Bill x 1. 50/6 -$67.20
$96.00 = $28.00
Total Bill +Total Bill x 100/6 _ $o -$150
$150.00
$3671.43 $3770.70 +99.0o per year
+$8.27/month
NON CONF
ORMING USES
The City would be required to
provide zoning for Auto -
Dealerships
AGRICULTURE/ NURSERY USES
The City does
not have an
Agricultural or
Rural -
commercial
zoning district
Nursery Uses
Typical Unit Types -
M F
Single Family
Rentals
Institutional Uses
Existing Easements
Code Enforcement - Signage
aaft
�- �~..�••�yr .4..� psi• .. _ '
Code Enforcement
Parking in ROW
iY
� aT
{ Ott ~
Code Enforcement - RV
-ONEWDIMF-
Typical ROW
Typical ROW substandard
condition
--
Typical ROW - some
improvement
Nonconforming ROW
- gravel
,A."
Code Enforcement - Property
Maintenance Standards
Code Enforcement
- Illegal Uses
Y
v-
New Duplexes
t �%wv.
d
w "S
7 ..
Annexation
■ Comprehensive Annexation Study
■ Cost -Benefit Analysis
■ Implementation
Impacts on Levels of Services
Community Services Department
Administration
2. Construction Services
3. Golf
4. Neighborhood Services
5. Parks
6. Public Works (Fleet, Facilities,
Streets/Stormwater)
7. Recreation
Administration
Loss of one FT Administrative Specialist III
position:
— Lengthened paperwork processing times
— Lengthened customer service response times
— Reduction in special projects
• i.e., Going Green Initiative, grant research, etc.
— Increased likelihood of errors
0!,
Golf Course
Loss of one FT Maintenance staff, one FT
Pro Shop Specialist, and one FT
Superintender+-
- Cross -over maintenance coverage with Pro Shop staff —
Less full time staff at pro shop to service customers
— Lean on other Divisions for staff support and irrigation
expertise
— Increased workload for remaining maintenance staff
— Increased number of days worked for staff to have
managerial coverage at Golf Course
— Less time for maintenance staff to participate in trainings
Parks
Loss of three FT Maintenance staff and one FT
Superintendent:
— Amended park closing time for weekend evenings from 10 PM to 7 PM
causing public to be barred from park usage or pay additional fees for
staffing
— Parks Director conducting all clerical/administrative functions resulting in
lengthened customer response times and paperwork processing times
— Chief lead workers provide additional supervisory support
— Lengthened response time for regular maintenance activities
— Less proactive maintenance activities
— Increased workload for remaining staff
— Less funding of capital projects causing additional maintenance
activities and downtime of facilities
Public Works
Loss of one FT Maintenance position and
ors C7T Superintendent'
— Lengthened response time for regular maintenance
activities
— Less proactive maintenance activities
— Increased workload for remaining staff
— Less funding of capital projects causing additional
maintenance activities and downtime of facilities
Recreation
Loss of one FT Superintendent, one FT Customer
Service Specialist, one Aquatic Supervisor
— Burns Road Operation: closed on Sundays, reduced public
operating hours
— Aquatic Center: closed Friday and Sunday, reduced public
access time
— Increased participation fees
— Doubled the workload of two Managers
— Severely reduced the access/staff/commodities available to the
Palm Beach Gardens High School
— Notified the PBGYAA of increased fees, reduced staff, and
commodities support
Recreation Business Model
Starting in FY01
• Reduce general fund dependency for operating costs
• Absorb new expenses in the special revenue fund
• Shift costs of capital purchases to the special revenue
fund
• Operations based upon successful revenue generation
• Shift costs of staffing over time from the general fund
to special revenue. (11 GF, 18 SR)
• Non-residents supplement revenue and complement
programming.
Recreation Overview
Expenses:
General Fund
Special Revenue
Total Exp
FY 08
$ 1,798,059
$ 2,120,236
$ 3,918,295 $
Fy 09
$ 1,729,571
$ 2,297,685
$ 4,027,256 $
FY 10 $ 1,432,638 $ 2,890,340 $ 4,322,978 $
FY 11 $ 1,242,858 $ 3,047,683 $ 4,290,541 $
Net
Change $ 555,201 $ 927,447
change 31% 30%
(estimates)
Revenue Recovery
2,385,523 61%
2,526,473 63%
note: only revenue
is estimated =the
2,440,739 56% lower
2,843,625 66%
FY 01 Revenue
Note: $993,646
Aquatics Operations
General Fund
FY 08
$
426,320 $
Fy 09
$
405,983 $
FY 10
$
377,945 $
FY 11
$
303,012 $
Change
29%
(estimates)
Special
Revenue
Total
Expense
Revenue
Recovery
42,588
$
468,908
$
108,759
23%
96,977
$
502,960
$
239,799
48%
1711186
$
549,131
$
256,007
47%
2771161
$
580,173
$
310,981
54%
85%
Resident vs. Non-resident
• Revenue Plan: 20% to 50% higher
• Leverage potential revenue to supplement
programming & capital replacement
• Examples:
Aquatic Admissions:
Resident 13,692 or $38,521 in revenue
NR 3,427 or $32,023 in revenue
I*I
b�
r CITY OF PALM BEACH GARDENS
YAA Participant Map
Budget Advisory Committee
Report to the City Council
The Budget Advisory Committee is continuing the precedent set in prior years
presenting to the City Council a summary of comments and suggestions from the
meetings the committee has had leading up to the Council's consideration of the 2011
Budget.
The committee is impressed with the knowledge and thoroughness of staff in preparation
of the annual budget that has been presented to Council and for review by the committee.
The methods used to make the projections of revenue, expenses and capital expenditures
are logical, prudent and in keeping with the guidance set by Council. Once again this
year we believe that staff has built on skills of the past which are needed to cope with an
ever changing financial environment.
The committee was disappointed to learn that the real estate values that are the
foundation for revenue projections which were thought to have stabilized, in fact, had
declined about 11%. This decline is primarily in the commercial real estate sector. The
boom times of the prior year are now confirmed as being over and unlikely to return any
time soon. This is resulting in less ad valorem taxes for the City of Palm Beach Gardens
this year and into the foreseeable future. Therefore we must continue to control
expenditures while maintaining the high standards of the city infrastructure that the
residents have come to expect.
The committee has suggestions and comments dealing with financial strategy, policy and
governance which are respectfully submitted for consideration by staff and the elected
Council:
1. The millage rate targeted by Council at the most recent meeting of 5.83 (plus the
debt service rate of .1854) is in the opinion of the committee the MiIiiffitim
maximum rate that should be approved. Even with the increase in the millage rate
to 5.83 there is still a need to use funds from the reserve. The committee suggests
that an appropriate balance has been struck between millage rate increase and use
of reserve funds. Setting too low a millage rate which may be politically prudent
in the current year subjects the Council to extremely difficult decisions in future
years. The Council must always look to the impact on future years when it sets
the millage rate.
2. The committee supports the continuing effort to have resident budget meetings
throughout the city in addition to those held at council chambers to insure that the
Council receives a significant number of comments from the residents about the
direction the budget process is taking.
3. The committee intends to put on its agenda for the coming term further discussion
of a more detailed policy for the use of the monies in the reserve fund and not
limit the guidance to the amount in the fund as a percentage of expenditures. The
committee is in agreement that the fund must stay at or above the 15% level due
to the continued uncertainty of the economy and the need for "rainy day"
expenditures. The guidance should be general enough so as to not hinder future
councils but that there be enough understanding of what the possibilities could be.
Some examples are to use the fund for non -reoccurring expenditures such as
capital expenditures, catch up payments to a pension fund, or special projects.
This would allow the operating budget to focus on the required expense to operate
the city at the level of service the citizens expect.
4. The committee suggests that the continued reliance on ad valorem taxes to
provide the revenue necessary may no longer be prudent. The state mandates a
maximum millage rate of 10.0 and the city is now almost 60% of the way towards
that maximum. Therefore a discussion of alternative revenue sources should begin
by looking to fees for waste collection, utility tax, increasing community service
tax, all of which are now additional components of the revenue side of the
budgets of most all of our neighboring communities. By adding such fees, Palm
Beach Gardens would still be among the least taxed jurisdictions in the county.
We should continue forward with cleaning up of our City boundaries by
eliminating the unincorporated pockets which the City loses over I Million
dollars annually. Such non -voluntary annexations could be left up to the voters to
decide on a referendum if the Council feels it is not within the normal procedures
in which annexations are performed. With the prospect of real estate values not
increasing and perhaps continuing to decline and expenditures continuing to rise,
even just at the rate of inflation, this will put an excessive burden on the ad
valorem tax which the committee recommends should be shared by other usage
fees and unincorporated areas that share our services.
5. The committee suggests that the city is in a very favorable location having two
major bio-medical research organizations at our door -step. These organizations
will be the magnet in the future for new firms to come to the area as spin-offs
occur. This will enhance the value of the City of Palm Beach Gardens in
countless ways. To ensure that there is continued economic growth, the
committee suggests that the budget include economic development funds that can
be used to attract or retain companies which have a substantial cascading effect on
both jobs and tax revenue possibilities.
6_Prior committees have been involved in discussion regarding the pension plan
underfunding and the high cost of administering these plans. Recommendations
have been made due to the concern over the future liability that has become a
significant factor in the City's finances. The committee supports the comments of
prior committees to keep the pension issue as an ongoing concern and it will be
revisited at future committee meetings.
6-7.And finally, the major category of expenses for the city is staffing. Since fiscal
year 2007, 77 positions have been removed from the employment rolls either by
eliminating budgeted but vacant positions, instituting a voluntary separation
program, transferring employees to a special revenue fund, and finally having to
lay off employees. The total effect over those years is to reduce the city
workforce from 514 to 437 employees. This is a commendable effort which has
reduced expense but maintain services to the residents of the city. It now appears
that further reduction in the workforce will have to be done very cautiously as
services expected by the residents will be noticeably affected.
The committee appreciates the opportunity to provide this report to the City Council and
welcomes that opportunity to discuss in more detail any of the suggestions and comments
listed above.
L. Marc Cohn Chair
Kenneth Menard Vice Chair
Bernard Pettingill Regular Member
Phillip Woodall Regular Member