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
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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
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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
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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.
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9 Harvey G idberg, Chair
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13 L. Marc Cohn, Vice Chair
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17 Bernard Pettingill, mittee Member
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21 Mark Veil, Committee Member
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25 (Vacancy)
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30 Attest:
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34 Donna M. Cannon
35 Municipal Services Coordinator
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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.