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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