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HomeMy WebLinkAboutAgenda BOC 042408AGENDA CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE THURSDAY, April 24, 2008, 8:30 AM CITY COUNCIL CHAMBERS I. PLEDGE OF ALLEGIANCE II. ROLL CALL: Reaular Members Harvey Goldberg Chair L. Marc Cohn Vice Chair Mark Veil Regular Member Bernard Pettingill Regular Member III. ADDITIONS, DELETIONS, MODIFICATIONS NONE IV. APPROVAL OF MINUTES: March 27, 2008 VI. ITEMS BY STAFF LIAISON June 26th meeting revised to either Monday June 23'd or Friday June 27th VII. OLD BUSINESS NONE VIII. NEW BUSINESS Update Fiscal Year 2007 Audit Fiscal Year 2008 Projections Update 2008/2009 Budget Process Pension Funding Status Update Workers' Compensation Self- Insured Option IX. COMMENTS BY PUBLIC NONE X. ADJOURNMENT 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 CITY OF PALM BEACH GARDENS BUDGET OVERSIGHT COMMITTEE REGULAR MEETING MARCH 27, 2008 The March 27, 2008 Regular Meeting of the Budget Oversight Committee of the City of Palm Beach Gardens, Florida was called to order at 8:38 a.m. in the Council Chambers of the Municipal Complex, located at 10500 North Military Trail, Palm Beach Gardens, Florida, by Chair Harvey Goldberg. I. PLEDGE OF ALLEGIANCE II. ROLL CALL The Municipal Services Coordinator called the roll. Members Present: Harvey Goldberg, Chair L. Marc Cohn, Vice Chair Mark Veil Members Absent: Bernard Pettingill Also in Attendance: Allan Owens, Finance Administrator /Staff Liaison Mary Anderson- Pickle, Deputy Finance Administrator III. ADDITIONS, DELETIONS, MODIFICATIONS None. IV. APPROVAL OF MINUTES Motion Mark Veil made a motion for approval of the January 24, 2008 minutes. L. Mark Cohn seconded. Motion carried unanimously, 3 -0. V. ITEMS BY STAFF LIAISON None. VI. OLD BUSINESS Finance Administrator Allan Owens presented highlights of the Government Accounting Standards Board (BASB) 45 and Other Post Employment Benefits (OPEB). Discussion ensued. Motion Harvey Goldberg made a motion for Board concurrence with staff for recommendation to continue the pay-as-you-go financing method and re- evaluate funding options every two years. Seconded by Mark Cohn. Motion approved unanimously, 3 -0. BUDGET OVERSIGHT COMMITTEE MEETING 03.27.08 PAGE 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 Board Member Approve Deny Harvey Goldber, Chair ✓ L. Marc Cohn, Vice Chair ✓ Mark Veil ✓ Deputy Finance Administrator Mary Anderson- Pickle discussed the early stages of the fiscal 2008 -2009 budget process. • Actual revenue for the 2008 -2009 budget will be approximately $2.3 million less than last year based on a static millage rate. • Department heads have been given target amounts to reduce their current year budget, and are due to Finance by April 7, 2008. • Better revenue estimates will not be available until June. • Councilmember Jody Barnett suggested two town meetings in May for informal resident input for possible budget savings. • L. Marc Cohn stated the City Council could choose to increase the millage rate. Allan Owens stated the millage rate can only increase according to the Florida per capita income growth, which is estimated at 4.15 percent over the 2007 roll back rate. VII. NEW BUSINESS None. VIII. PUBLIC COMMENTS None. (The remainder of this page intentionally left blank.) BUDGET OVERSIGHT COMMITTEE MEETING 03.27.08 PAGE 2 I IX. ADJOURNMENT 2 With no further business to come before the Committee, L. Marc Cohn made a motion for 3 adjournment. Mark Veil seconded. Motion carried unanimously, 3 -0. The meeting adjourned at 4 9:27 a.m. The next regular meeting will be held April 24, 2008. 5 6 A r v : 7 8 9 Harvey G idberg, Chair 10 11 12 13 L. Marc Cohn, Vice Chair 14 15 16 17 Bernard Pettingill, mittee Member 18 20 21 Mark Veil, Committee Member 22 23 24 25 (Vacancy) 26 27 28 29 30 Attest: 31 32 33 34 Donna M. Cannon 35 Municipal Services Coordinator 36 37 38 39 40 41 NOTE: These action minutes are prepared in compliance with 286.011 F.S. and are not verbatim 42 transcripts of the meeting. A verbatim audio recording is available from the Office of the City Clerk. All 43 referenced attachments on file in the Office of the City Clerk. BUDGET OVERSIGHT COMMITTEE MEETING PAGE 3 03.27.08 Overview Comprehensive Annual Financial Report Ended September Financial Highlights • Government -wide net assets increased by $7 million to $96.6 million • Golf Special Revenue Fund revenues exceeded expenditures by $97,676 (ending fund balance of $134,070) • Fund level statements reflect undesignated GF Fund Balance of $15.8 million (22% or ~2.7 months of operating expenses) i C urren Year Recommendation to Improve Financial Management, Accounting Procedures, and Internal Controls Condition: During testing of revenues, it was noted that some grant reimbursements were not recognized in the correct fiscal year. The costs incurred for this grant related to storm activity which was incurred in fiscal year 2006. The City did not know if they were eligible for reimbursement from this grant until several months into the next fiscal year. It was also noted that the City received reimbursement from a tree staking grant related to expenditures that were incurred in fiscal year 2005 and this grant was not included on the Schedule of Federal Awards in fiscal year 2005. Recommendation: We recommend the City review all grant agreements and make sure revenues are properly recorded under the terms of the agreement in a timely manner. We recommend the City include all grant expenditures on the Schedule of Federal Awards. Current Year Recommendation to Improve Financial Management, Accounting Procedures, and Internal Controls • Management response: The Bellwood Canal Restoration project in the amount of $135,956, which was part of the improvements related to damage from Hurricane Wilma, was a grant awarded during fiscal year 2006. The work was not approved and reimbursed to the City until December 2006. At the end of fiscal year 2006, the City was uncertain as to whether the expenses incurred would be approved and subsequently reimbursed. Therefore, the City conservatively accounted for the transaction by not recording a receivable /revenue in fiscal year 2006. The Tree Staking grant in the amount of $46,000 related to expenditures incurred in October 2004. The City was not aware of these grants until May 2006, and was finally reimbursed in February 2007. Therefore, it was impossible to predict that any expenditures should have been listed on the fiscal year 2005 Schedule of Federal Awards. Fiscal Year 2008 Revenues, Expenditures, and Fund Balance Projections Ended September L' • �J 144,202 822,473 '32,124) 634,551 '00,000) ')83,640) '32,247) 818,664 Update on Fiscal Year 2009 Budget Process Where are we in the process? • Departments' initial requests are being compiled for City Manager review • Fiscal year 2008 revenues and expenditures estimated • Revenue estimates for 2009 being developed • Data requests for compensation and benefits study being completed What's next? • Two workshops in May prior to Council meetings for public input • Prepare budget based on Council's goals • Distribute budget books to Council and Budget Committee in June (after receipt of preliminary property values) • Set maximum millage in July • Two public hearings in September Council Discussion Items ' Management holding individual meetings with Council to request input on following: 1. FID cost recovery 2. FIRS option for PID and FID s. In -house engineering 4. Construction of EOC facility /use of FEMA reimbursement 5. Non - resident recreation fees s. Goal for millage rate /use of reserves Miscellaneous Items 1. Update on Pensions � FD Pension actuarial valuation completed as of 10/1/07. Contribution required from City is $3.18 million (up 4.1 %). Funded ratio is 53.9% (up from 46.8% prior year, 38.4% two years ago). � PD Pension actuarial valuation completed as of 10/1/07. Contribution from City is $3.35 million (up 6.5 %). Funded ratio is 53.2% (up from 48.9% prior year). Miscellaneous Items 2. Workers' Compensation Self- Insured Option � Currently analyzing loss experience and re- insurance premium quotes from insurance agent. Insurance representative will be at May meeting to review this option with Committee.