Source: https://townofpalmbeach.com/DocumentCenter/View/10316/Final-budget-FY16-html?bidId=
Timestamp: 2020-02-17 18:53:20
Document Index: 686097108

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Final budget FY16 html
COMPREHENSIVE ANNUAL BUDGET FISCAL YEAR 2016
Michael J. Pucillo, Town Council President Richard M. Kleid, Town Council President Pro-Tem
Danielle H. Moore, Town Council Member Penelope D. Townsend, Town Council Member Robert N. Wildrick, Town Council Member
Danielle H. Moore Penelope D. Townsend Robert N. Wildrick
The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Presentation to the Town of Palm Beach for its annual budget for the fiscal year beginning October 1, 2014.
Strategic Planning and Key Results Measurement 18
Town Overview/Demographics 26
Assessed Valuation and Millage Rate 27
Town History 31
Financial Policies 33
Budget Preparation Process 38
Budget Calendar 43
Financial Structure 44
Fund Budget Overview 49
Budget Summary by Fund Type, Revenues and Expenditures 50
Summary of Major Revenues by Fund Type 52
Summary of Expenditure Classifications by Fund Type 54
Capital Expenditures 63
General Fund Revenues and Expenditures Budget Comparison 65
General Fund Revenues 67
Major Revenue Sources 71
General Fund Expenditures 81
Legislative (111) 85
General Government (113) 87
Town Manager’s Office Organization Chart 90
Administrative Management (121) 92
Advice and Litigation (122) 93
Information Systems (125) 95
Human Resources Organization Chart 100
Human Resources (123) 103
Finance Organization Chart 110
Finance Department Revenue and Expenditure Summary 112
Records Management (131) 113
Financial Management (141) 115
Purchasing (144) 118
Planning, Zoning and Building Organization Chart 122
Planning, Zoning and Building Department Revenue and Expenditure Summary 124
Planning and Zoning (211) 126
Permit Issuance (212) 128
Inspection and Compliance (213) 131
Landmarks Preservation (214) 133
Fire Prevention (215) 135
Code Enforcement (216) 137
Fire-Rescue Department Organization Chart 140
Fire-Rescue Department Revenue and Expenditure Summary 143
Fire Administration (411) 145
Operations (417) 148
Training (418) 152
Ocean Rescue (419) 155
Police Department Organization Chart 160
Police Department Revenue and Expenditure Summary 163
Administrative Management (421) 165
Organized Crime Vice and Narcotics – OCVAN (422) 168
Records Information System Unit (423) 170
Training and Community Relations Unit – TCR (424) 172
Communications Unit (425) 175
Crime Scene/Evidence Unit (426) 177
Patrol (428) 179
Criminal Investigation Unit (429) 183
Parking Control Unit (430) 185
Public Works Department Organization Chart 188
Public Works Department Revenue and Expenditure Summary 193
Administrative Management (511) 195
Street Repair and Maintenance (521) 196
Traffic Control (523) 198
Street Lighting (524) 200
Storm Sewer Maintenance (531) 202
Sanitary Sewer Maintenance (532) 205
Sanitary Sewage Treatment (533) 208
Residential Collection (541) 209
Commercial Collection (542) 211
Refuse Disposal (543) 212
Yard Trash Collection (544) 213
Recycling (545) 215
Beach Cleaning (546) 217
Landscape Maintenance (551) 218
Facility Maintenance (554) 220
Meter Maintenance and Collection (558) 222
General Engineering Services (561) 223
Right of Way Inspections (565) 225
Equipment Operation and Maintenance (571) 226
Coastal Management (581) 228
Library Services (321) 232
Transfers to Other Funds (611 to 625) 233
Emergency Management (710) 234
Contingent Appropriations (711) 235
Debt Administration 237
2010A and 2013 Revenue Bonds (Fund 205) 242
2010B Worth Avenue Revenue Bond (Fund 206) 243
Capital Projects by Project Type and Fund 246
Impact of Capital Investments on Operating Budget 247
CCMP FY15 Accomplishments and FY16 Action Plan 251
Coastal Management Program Budget 265
Town Facilities Fund 267
Worth Avenue Maintenance 269
Queens Lane Roadway Improvements 278
El Bravo Way, South Woods Road, and La Puerta Way Drainage Improvements 279
Monterey Road, Orange Grove Road, and Onondaga Avenue Street Improvements 280
Bradley Place Improvements – Royal Poinciana to Wells 281
Ridgeview Drive, Cherry Lane, and West Indies Drive Drainage Improvements 282
Lake Trail Improvements from Royal Palm Way to Reef Road 283
D-4/D-10 Pump Station Improvements – Construction 284
Fuel Tank Replacements at the D-8, D-14, and A-7 Pump Stations 285
Stormwater Pump Station Improvement Assessment 286
Midtown Drainage Improvements 287
D-2 & D-9 Drainage Basin Interconnect 288
North Ocean Boulevard Seawall 289
Ocean Outfall Abandonments 290
Coastal Structural Improvements 291
Groin Improvements and Reach 3 Rehabilitation 292
North Fire Station Emergency Generator Replacement 293
Landfill & Facility Improvements 294
Public Works Maintenance Bay 295
Memorial Fountain Restoration 296
Town Hall Square 297
ACIP Phasing Plan 298
Mast Arm Replacements/Upgrades 299
Bradley Park Improvements (Fountain) 300
Street Light Replacements 301
Street Lighting Upgrades – South Ocean Blvd, Sloans Curve to Lake Ave 302
Employees Retirement Fund 345
Health Insurance Trust 347
Retiree Sliding Scale Insurance Premium Rates 2016 351
Authorized Positions 355
Donation Reserve Account Summary 360
Fund Balance 361
Contingency Reserve – General Fund 367
Designation of General Fund Balance - Liability Related to Compensated Absences Leave Balances 368
Reserve for Encumbrances, Continuing Appropriations, and Prepaid Expenses 369
Contingency Reserve – Capital Fund 370
Equipment Replacement Reserve 371
Contingency Reserve – Equipment Replacement Fund 372
Recreation Enterprise Fund Reserve 373
Dock Replacement Reserve – Recreation Enterprise Fund 374
Contingency Reserve – Recreation Enterprise Fund 375
Contingency Reserve – Recreation Enterprise Fund – Capital Fund 376
Equipment Replacement Reserve – Recreation Enterprise Fund 377
Recreation Enterprise Fund – Maintenance and Improvement Reserves 378
Reserve for Catastrophic Exposures/Emergencies – Risk Fund 379
Contingency Reserve – Risk Fund 380
Contingency Reserve – Health Insurance Fund 381
Budgetary Control 382
Debt Management Policy 383
Revenue Shortfall Plan 384
Index… 387
Submitted herewith is the Annual Budget and Financial Plan for the Town of Palm Beach for the fiscal year commencing October 1, 2015 (FY2016). Expenditures from all operating, capital projects, and debt service funds, total $166,440,947. This budget is of note in that the property tax rate providing revenue to the General Fund is recommended to be reduced to (3.3779), a 0.82% millage rate decrease. The taxable value for FY16 has been estimated by the Property Appraiser to be $14,687,090,837, 9.74% over FY15. In preparing this budget, staff has tried to adequately address the needs of the Town, while at the same time minimizing the impact to Town taxpayers.
Continue with adoptions of the 10 Year Beach Management Program. FY2016 goals include sand placement in Reaches 7 and 8, extend Corps disposal area in Reach 2 and begin multi-year groin rehabilitation process. Re-assess plan to consider dredge vs mined sand. How to pay for groins and set timelines. Results of EIS. This budget includes an additional $3,238,220 for the Coastal Program.
Target annual operating expenditures that would result in a millage rate that would result in $0 increase for homestead property owners. This budget meets this goal.
Develop a financing plan for the Townwide underground utilities project. Staff will be working on this goal throughout the coming year. A referendum has been scheduled for March 15, 2016 for elector approval of $90 million in double- barreled general obligation bonds.
This letter of transmittal is designed to provide for an understanding and policy analysis of the FY16 budget for the elected officials and public. The Annual Budget Document provides additional detailed information for all revenue and expenditure categories and has been prepared in a program format. Each program contains historical and FY16 budget expenditure information and a narrative description of what services are provided. In this way, elected officials are able to understand and concentrate on the very important policy questions necessary to consider when reviewing the annual budget such as: Is this the level of service that citizens expect? Are taxpayers willing to pay the cost of providing this level of public service? How are the Town’s long-term capital and financial needs of the Town being addressed?
The General Fund is the primary operating fund of the Town. It is the only fund which utilizes ad valorem (property) taxes as a direct revenue source. The adopted millage rate is 3.3779 which is less than the FY 15 rate of 3.4058 representing a 0.82% millage rate decrease and an 8.32% increase over the rolled back rate of 3.1184.
General Fund expenditures increased by 6.9% over FY15. This increase includes an additional $3,238,220 transfer to the Coastal Management Fund. If this increase had not been included, the General Fund budget would have increased by 2.21% over FY15. Highlights of the FY16 budget include:
The budget includes an increase in EMS fees.
Opticom devices for the major intersections, which automate a green light for emergency vehicles ($95,000)
StarChase Pursuit Management Systems which deploys tracking devices onto fleeing vehicles ($16,800)
An increase in the transfer to the Debt Service Fund of $165,462 for principal and interest payments on the Town’s bonds.
12)A reduction of $397,000 in the transfer to the OPEB trust fund due to positive experience reflected in the actuarial study.
In the General Fund, total revenues are expected to increase by $4,618,987 (6.86%) from the adopted FY15 budget. The changes by revenue type are shown on the table on the following page.
$3,706,700
$4,618,987
The FY16 budget contains an increase in property tax revenues of 8.54% sufficient to cover increases in operating expenses and an additional $3,238,220 transfer to the Coastal Management Fund.
Total non ad valorem revenues (excluding transfers of fund balance) are anticipated to increase by $912,287 from the FY15 revenue budget. The differences by revenue type are described in detail, as follows:
Licenses and Permits are expected to increase by $324,720 (4.75%). This is due to an improvement in building permit revenue and an increase in the business tax fees but is still conservatively estimated compared to recent history.
Intergovernmental Revenues are expected to increase by $55,687 (5.16%), due primarily to increases in State sales tax estimates.
Charges for Services are expected to increase by $293,788 (8.22%), due to the increases in EMS Transport fee amounts, and improvement in parking meter revenues (based on better than anticipated FY15 results).
Miscellaneous Revenue is expected to increase by $45,600 (20.63%) due to the addition of the defined contribution forfeiture funds added to the budget for the first time to offset Town’s contributions to the defined contribution plan.
The only Interfund Transfer is from the Recreation Enterprise Fund for services provided by the General Fund. This transfer is reduced by $100,000 to $785,000 for FY16. The Town Docks will have to be replaced within the next 7 to 10 years. We are currently accruing funds in the Dock Replacement Reserve on an annual basis equal to the annual depreciation of approximately $164,000 per year on the docks. Through FY14 a total of $2,715,680 had been set aside in the Dock Replacement Reserve. Current estimates for the replacement of the Town Docks are over $10,000,000. We are reducing the transfer to the General Fund and increasing the annual transfer to the Dock Replacement Reserve by $100,000 in order to strengthen the reserves for the future project. We will likely propose the same increase in future years until the total annual contribution approximates the estimated debt service on the dock replacement cost.
The transfer from fund balance is $1,579,586. The transfer represents $944,686 for contingency funding and $634,900 from the designated reserve for compensated absences, both in compliance with the Town’s adopted financial policy.
Total General Fund expenditures of $71,914,331 represent a 6.86% increase from FY15 expenditures. Changes for each individual program are included under separate tabs in the Annual Budget Document. If you compare the budget to budget increase less the transfer to the Coastal Management Fund, the year over year increase would be 2.21%. Highlights of the overall changes by category of expenses for FY15 vs. FY16 are set forth in the table on the following page:
-546,241
14,711,362
3,478,601
Salaries and wages are increasing by $22,914 (0.09%) for FY16. The increase is partially due to the addition of 3.50 FTEs in the General Fund. Each of these positions are described in greater detail below. This category also includes the cost of providing pay for performance increases to eligible employees and a 2% increase to employee pay ranges, offset by salary decreases due to the retirement of 18 employees during FY15.
The budget includes additional positions in the General Fund. A portion of the increase in personnel cost is offset by non-salary cost savings in the same program or by personnel cost reductions in other programs due to retirements. A summary of the personnel changes in the General Fund is provided below:
Human Resource Analyst – Increased resources devoted to the recruitment process in order to decrease the time needed to fill vacant positions.
Zoning Technician – Improve the plan review process to ensure all zoning and other conditions placed upon a project unrelated to the Florida Building Code are included
in the documents submitted for permitting; and (b) add resources to answer questions from the public relative to the requirements of the Zoning Code.
Reclassification of a part time Mechanic I to a full time Mechanic – To fill an operational need for the maintenance and repair of equipment, cars and light duty trucks due to the inability to hire or retain a person in this position on a part-time basis.
The Town’s match to the defined contribution plan is funded at 8%, which includes the 4% required match of the employees’ contributions and full funding (4%) of the 0%-4% discretionary Town contribution. The General Fund DC contribution is anticipated to be
$1,303,233 for FY16. This contribution will be offset by accrued forfeiture funds totaling
The $546,241 (6.45%) decrease in the cost of non-pension employee benefits reflects the decrease in the cost of the longevity and bonus program and the decrease in the transfer to the OPEB Trust fund. The transfer to the OPEB trust fund decreased by $397,000 due to positive experience and higher reserves causing a reduction in the actuarial determined required contribution. There is no increase in employee health insurance funding in FY16 based upon trend analysis provided by the Town’s health insurance consultants.
Total contractual costs are increasing in FY16 by $365,735 (4.27%) including the following specific increases: $88,871 increase in software and computer equipment maintenance costs for maintenance on the Town wide security cameras and Human Resource recruitment software, $45,000 for legal costs, $29,800 for election costs, $60,000 in digital scanning,
$50,000 in contractual plan review, $70,000 landscape contracting, and $25,000 for additional sidewalk maintenance costs.
The $20,393 (1.16%) increase in FY16 for commodities is due to increases fuel costs in various public works programs, and other miscellaneous supplies throughout all Town departments.
The increase in capital expenditures of $467,947 (24.94%) is partially due to increased depreciation costs of $287,117 on new equipment purchases and a specific increase in the estimated replacement value of 3 pumpers in the Fire-Rescue Department due to higher than anticipated increases in the cost of these vehicles. In addition, the following items are included as new capital purchases:
Opticom Traffic Preemption System Intersection Controllers ($95,000) – This system uses GPS technology to activate traffic lights to both stop cross traffic and allow traffic in the transport lanes to clear the intersection prior to the arrival of an emergency vehicle. The equipment reduces response times and EMS transport times and provides for a safer response for both responders and public by reducing traffic conflicts at each intersection. Currently 8 intersections have the controllers (Funded by FDOT for the Flagler Memorial Bridge construction), the request is to expand the system to include additional intersections.
StarChase Pursuit Management Systems ($16,800) - The Star Chase System
is a GPS Launcher that attaches to the front of a patrol car. It deploys tracking devices onto wanted or fleeing vehicles, eliminating the need to pursue suspects at high speeds. We currently have 3 of our 14 vehicles equipped with these devices. This appropriation will equip the entire police fleet.
The Other category includes transfers to other funds (including the Capital Improvement Fund, Debt Service Fund and the Risk Insurance Fund) and funding for the Four Arts Library. Also included in this category is the General Fund Contingency.
The Pay As You Go portion of the capital improvement program has been increased slightly (3%) to $1,030,000 as an inflationary increase to cover the cost of small capital projects not included in the Accelerated Capital Improvement Program and to
begin to increase this transfer to build reserves for capital projects once the ACIP bond funds have been spent.
The transfer to the Coastal Management Fund of $8,015,220 represents an increase of $3,238,220 to the funding for the coastal program due to recent cost increases and funding for future anticipated increases.
As of September 30, 2014, the Town’s unassigned General Fund balance was $22,298,680. Town policy requires that the General Fund maintain an unassigned fund balance of 25% of budgeted operating expenditures (General Fund budget less coastal transfer). This requires a minimum unassigned fund balance of $15,629,586 for the FY15 budget. Therefore, the Town’s unassigned General Fund balance was $6,669,094 above the policy required minimum for FY15. The Town Council authorized a budget amendment in FY15 to transfer
$6,600,000 from unassigned fund balance to the Coastal Fund. The FY16 budget includes a transfer of $1,579,586 from fund balance reserves to fund the following items: contingency reserve ($944,686) and compensated absence payouts ($634,500). The compensated absence payouts will come from the compensated absence reserve. The contingency transfer will come from the Town’s unassigned General Fund balance. The General Fund Unassigned fund balance is conservatively estimated to be approximately $19,500,000 on October 1, 2015 which is over the required FY16 minimum of $16,005,622.
The total personnel complement (for all funds Townwide) for FY16 is 365.09 full-time equivalent personnel (FTEP), which is an increase of 4.91 FTEP from the adopted FY15 budget. This includes the following position changes: An additional Human Resource Analyst, a Zoning Technician, an Engineering Technical Support Specialist, an upgrade from part time to full time for a mechanic position, a Crew Foreman/Irrigation Specialist at the Par 3, various part time adjustments in the Recreation Enterprise fund allocation and adjustments to the allocations to the internal service and trust funds to more appropriately allocate the true cost of the services provided by the Finance Department and Human Resources. A chart of the FTEP by department is shown on the table on the following page:
Issued September 30, 2015 Purpose
For FY16 the following assignments of the CIP transfer are included in the Pay As You Go capital budget:
Street and Road Improvements - $700,000 – Includes $200,000 for the development of a future pavement management program and $100,000 for curb and sidewalk replacement projects.
An additional $30,000 or (3%) increase in included in the FY16 budget to increase the
funding to the Capital Improvement Fund and begin to build up the reserve in this fund for future capital projects and to acknowledge inflationary impacts to construction projects.
The Coastal Management Fund (309) is used in part to fund the construction costs of the coastal projects. The details of the FY16 budget for Coastal Management can be found in the Annual Budget Document. This plan has been updated by Public Works to include estimates for future projects based upon current costs. The budget reflects an increase to the transfer from the General Fund by $3,238,220. The recent Mid-Town and Phipps projects were both significantly over budget. In order to fund the future projects, without having to borrow, additional funding is needed for this fund.
Overall, recreation revenue reflects an increase in FY2016 of 8.4% from the FY2015 budget for the Recreation Enterprise Fund (REF).
Tennis revenues are slightly higher for FY2016. The focus remains on increasing participation and no fee increases were proposed. Tennis has experienced an increase in participation this year and this trend is expected to continue in FY2016 despite a general decline in tennis participation locally and nationally.
Recreation Center revenues for FY2016 are expected to experience a slight increase. The revenue focus for the Recreation Center will be on developing new programs and increasing participation. Modest fee increases to individual activities will be in effect for the upcoming fiscal year.
Town Docks revenues for FY2016 are expected to be higher. An across the board dockage fee increase of 3% for annual, seasonal and transient customers is included in the FY16 budget. The overall increases should not affect our place in the market.
Golf Course revenue projections are expected to increase in FY2016. Minor increases in the winter season regular rate (of $1.00 per round) and club rentals are included in the budget as well as increases to single and double adult annual passes for residents and nonresidents. The continued demand for tee times indicates these increases to fees will be tolerated and not affect either the volume of play or the Par 3’s place in the market. Also, the food and beverage operations in the clubhouse provide an important source of revenue.
The FY2016 REF budget represents an increase of 6.9% from the FY2015 budget. The Par 3 Golf Course expenses are expected to increase 10.9% due to the addition of a Crew Foreman/Irrigation Specialist (1.00 FTE). This position is necessary due to an 80% increase in play at the golf course which has resulted in greater wear and tear of the course requiring greater attention and staffing needed to maintain the quality of the greens. The management of the enhancements made to the irrigation/fertigation system during the renovation and increased level of activity on the course exceeds what a single full-time person can manage. The facility is open 7 days a week and currently there is no relief for the Superintendent to handle emergency repairs, delegate supervision of contracted staff or other operational duties.
The Town Docks’ expenses will increase 7.4% due to anticipated retirement payout and an adjustment to group insurance estimates for covered employees. Tennis and the Recreation Center budgets will see minor increases of 0.6% and 1.1% respectively.
The transfer to the General Fund is budgeted at $785,000, a reduction of $100,000 from the FY15 budget. As mentioned before, the reduction will be transferred to the Dock Replacement Fund.
A new reserve has been adopted for the Recreation Enterprise Fund called the Maintenance and Improvement Reserve for the Par 3 Clubhouse. This reserve will be funded with a year- end transfer of 50% of the Par 3 golf course net profits. The clubhouse and restaurant have become very successful and because of the success, the wear and tear on the clubhouse has been noticeable. This reserve will accumulate funds for future major repair and maintenance projects that are necessary to keep the clubhouse in excellent condition to ensure continued success. The reserve will begin to be funded with the FY15 year-end net profits.
The Equipment Replacement Fund (320) contains the accumulated depreciation of all fixed assets over the established thresholds of $2,500 for capital equipment and $1,500 for computer equipment. The annual depreciation transfer for FY16 is $2,107,319. This amount represents an increase of $287,117. In FY16, the total expenditures for equipment purchases will be $1,354,100. A detailed listing of planned equipment purchases is located in the Internal Service Funds section of the Annual Budget Document.
The Town contributes a required match of up to 4% to the Defined Contribution (DC) plan. Contributions to the DC plan began with the implementation of the hybrid plan on May 1, 2012. In addition, the Town Manager may recommend and the Town Council may approve an additional discretionary contribution of up to 4% per year, to be decided each year depending upon economic and budgetary conditions. For FY16, the Town Manager recommended and the Town Council approved a 4% discretionary DC contribution at a cost of $653,659. Total employer contributions to the DC plan are shown in the chart below:
It is our expectation that property value growth will slow to a more stable rate for next year. Since 2000 the average rate of growth has been 6.84%. Recent articles in the local press indicate property values may increase even more than the FY16 increase so we expect the growth rate for FY17 to remain strong.
Announce modifications to the employee performance bonus program that will be effective in FY17 to make the program more transparent and structured to more appropriately reward high performing employees.‌
The estimated inventory of parts, supplies, fuel and materials on hand as of October 1, 2015, was $471,649 and the total fixed asset inventory (which includes machinery, equipment, and vehicles with a value over $2,500 and computer equipment with a value over $1,500) was $19,746,204`.
The Town has 19 formally adopted financial policies. The establishment of specific reserve policies is an important part of prudent financial management and the practice is strongly recommended by the Government Finance Officers Association (GFOA) and the National Advisory Committee on State and Local Budgeting (NACSLB).
In 2003, the Town of Palm Beach developed and adopted a strategic plan. The development of the strategic plan involved input from elected officials, citizens, the business community, and staff. In conjunction with the Town’s strategic plan, staff developed an organizational vision statement which included input from all employees. Both the strategic plan and the vision statement, in addition to annually adopted Townwide goals, help us to form our department and program goals. Outlined in the following pages is a summary of our strategic plan, organizational vision, and departmental goals for FY16.
A community that has guarded against over-development, encouraging redevelopment consistent in scale with existing neighborhoods, reflective of our heritage.
Townwide Budget Priorities for FY2016
The Town Council’s annual budget priorities for FY2016 are outlined below. These priorities were developed with input from the Mayor and Town Council, Town Manager, Department Directors, and staff and finalized at the June 9, 2015, Town Council meeting.
Once the Mayor and Town Council set the FY2016 priorities, the Departments developed goals and objectives that would accomplish the priorities. In addition, the Departments developed other major initiatives for the year. The Council priorities and Departmental goals will be reviewed on a continual basis throughout the fiscal year.
Continue with adoption of the 10 year Beach Management Program. FY16 goal includes sand placement in Reaches 7 and 8, extend Corps disposal area in Reach 2 and begin multi-year groin rehabilitation process. Re- assess plan to consider dredge vs. mined sand. Research how to pay for groins and set timelines. Review results of EIS.
Review updated 10 year beach management plan with the Shore Protection Board and Town Council. Successfully re- nourish Reach 7 with dune work in Reach 8, if possible. Work with Shore Protection Board and Town Council on feasibility of proposed groin rehabilitation program. Continue with Completion of the Reach 8 EIS.
Continue pursuit of required Federal permits in accordance with BMA. Continue BMA and permit required monitoring. Construct shore protection projects in accordance with the 10- year plan.
Target annual operating expenditures that would result in a millage rate that would result in a $0 increase for homestead property owners.
Work with the Town Council and Department Staff to prepare a FY16 budget that is fiscally responsible and results in no tax increase for homestead property owners. (Goal was achieved)
Develop a financing plan for the Townwide underground utilities project.
Work with the UUTF, Consultants and the Town Council to prepare a financing plan for the underground utilities project. Referendum for Double-Barreled General Obligation Bonds scheduled for March 15, 2016.
Location FY2016
Town Overview/Demographics FY2016
FY2016 General Fund Budget $71.9 Million
Taxable Property Valuation $14.7 Billion
2014 (Univ of Florida Est)
68.7 yrs.
S&P AA+ AAA Registered Voters 7,705
The Town Council approved a millage rate of 3.3779 for FY16, a decrease from the FY15 millage rate of 3.4058. Taxable value increased 9.74% to $14,687,090,837 for FY16. Ad Valorem revenue of $47,130,948 is included in the FY16 budget.
Town adopted final millage rate is above rollback but below maximum millage rates. The increase in tax revenue from the rollback rate is $3,620,735. The chart below identifies the millage rate options available to the Town and the Town’s adopted final millage rate.
$43,510,213
$47,645,804
$52,410,663
$47,130,948
The majority maximum millage rate is the prior year rolled-back rate adjusted to the rolled back rate if the prior year majority vote rate had been levied. This newly calculated rolled-back rate is then adjusted by the percentage change in per capita Florida personal income to arrive at the current year majority vote rate. This year the percentage change is Florida personal income was 1.96%. The 2/3 vote maximum rate is 110% of the majority maximum rate.
Historic taxable value peaked in FY09 at $13.68 billion. Since FY09, the Town’s taxable value had declined by 15% through FY12. Since FY12, values have increased and in FY16, the taxable value increased by 9.74% to a new all-time high. The FY16 millage rate decreased, but due to the increase in taxable value, an additional $3,706,648 in property tax revenue was added to the budget to supplement the funding of the coastal protection program. The tax revenue trend is shown on the chart on the following page.
The Town millage rate represents 18.86% of the total tax bill. The table below illustrates the difference between the FY15 vs. FY16 total tax bill by taxing district for a Palm Beach property owner with a taxable value of $1 million.
FY16 Tax Change Per
The Town has a total of 9,458 total parcels. Residential units total 8,905 or 94% of all parcels. Condominiums and Cooperatives represent the greatest percentage of total parcels in the Town at 68% or 6,386 parcels. Single family residential parcels are the second largest group at 2,283 parcels or 24% of the total. Commercial and industrial parcels total 387 and the balance is made up of multi- family, government, institutional and miscellaneous parcels. Properties with a Homestead exemption represent 35% of the total parcels in the Town.
The taxable value of parcels in the Town totals
$14.7 billion. Residential parcels represent 91% of the total value of parcels and single family residential represents 64% of the total value. Commercial and industrial properties represent 8% of the total value of parcels.
Properties with a homestead exemption represent $5.9 billion (40%) of the total taxable value.
Historical Building Permit Detail
Beginning in 2008, building permit revenue declined due to the downturn in the economy. For the past five years, permit revenue and permit activity increased. A total of 9,959 permits were issued in FY15, compared to 7,727 for FY10. Total permit valuation for FY15 was $326,626,671 compared to $117,361,908 for FY10.
We expect permit activity to continue at high levels for FY16. The improvement in permit activity and new construction has resulted in a portion of the improvement of the Town’s taxable value, with the balance an improvement in the real estate market.
The Town of Palm Beach has 7,720 registered voters in 2015 with approximately 8,168 full time residents. The population swells to approximately 25,000 during “season” which is from November to April. Residents and visitors enjoy the very best in dining, shopping, and luxurious surroundings. Worth Avenue shops attract visitors worldwide.
In 2011, the Town celebrated its Centennial with a season full of activities and events. A Centennial Commission was formed to engage with the community, residents and businesses alike, to identify ways to celebrate the 100th anniversary of the Town's incorporation on April 17, 2011.
The budget will be controlled at the program level within each department by the applicable department head. Budget amendment requests and transfers of funds between programs will originate from the applicable department head and the Finance Director and shall be subject to the approval of the Town Manager.
Maintain a reserve for funding the maintenance and improvement projects for the Par 3 clubhouse and golf course, and tennis centers.
All Governmental Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized in the period in which they become susceptible to accrual that is when they become measurable and available to pay liabilities of the current period.
Flow Chart of Budget Process FY2015
FY2016 Approved Budget Calendar
Task Date Task Date‌‌‌
Finance to distribute FY16 Budget instructions
Town Manager’s Review of Town Manager, Risk Insurance, and Finance Budgets
Department’s Budget Requests and Public Works CIP requests to Finance
Town Council Meeting – Discussion of Long Term Financial Plan and Adoption of the FY16 Budget Priorities
Town Manager’s Additional Review of Department Budgets (As Needed) - Town Manager review of Revenue Estimates with Finance Director
Town Manager’s Review of Information Systems Budget
Town Manager’s Review of Fire-Rescue Budget
Distribution of Proposed FY16 Budget Document
Special Town Council Meeting to Consider Proposed FY16 Budget and Initial Resolutions(s) Adopting Special Non-Ad Valorem Assessments
Town Council Meeting – First Public Hearing to Approve Tentative Budget and Proposed Tax Rate for FY16 and Final Resolution(s) Adopting Special Non-Ad Valorem Assessments
Town Manager’s Review of Public Works, Capital, and Coastal Budgets
05/14/2015GF
5/21/15-CIP/
Town Council Meeting – Second Public Hearing to Adopt FY16 Budget and Tax Rate
(121) Special Assessment Maintenance Fund – Accounts for the non-capitalized expenses related to the assessment districts.
Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises; where the intent of the government’s board is that the costs of providing goods and services to the general public on a continuing basis are financed or recovered primarily through user charges; or where the government’s board has decided that periodic determination of net income is appropriate for accountability purposes.
Fund Budget Overview FY2016
5,665,537
6,908,519
16,468,907
9,368,393
20,468,713
70,334,745
14,311,706
135,199,029
31,241,918
$39,138,176
$166,440,947
$24,950,912
$26,703,082
31,203,225
2,123,551
35,939,533
37,694,007
8,180,825
21,475,613
71,914,331
37,614,517
158,276,089
1,523,659
8,164,858
as percentage of tota
FY16 Budget by Revenue Type All Funds
Interest Earnings 10.6%
Appropriations from Fund Balance 18.9%
Interfund Transfers 12.4%
6.1% Fines and Forfeitures
Ad Valorem Taxes 28.5%
Sales and Use Taxes 4.8%
Licenses and Permits 4.3%
FY16 Budget by Expenditure Classification All Funds
Commodities Capital Outlay
Contractual 18.7%
Depreciation 1.8%
Employee Benefits 13.3%
Personnel 16.0%
Interfund Transfers 12.9%
Summary of Major Revenues by Fund Type FY16 Budget
FY2013 FY2014 FY2015 FY2015
Actual Actual Budget Projected
to FY2016 FY2016 FY15 Budget %
Budget % Variance of Total
$39,110,926
$43,858,543
8,648,808
7,808,698
7,401,315
8,981,274
1,056,503
3,741,185
3,813,785
1,924,183
63,815,754
6,338,716
$65,287,136
$74,709,616
6,624,949
7,365,233
7,775,013
$7,365,233
$7,988,016
432.94%
26,408,913
27,280,805
6,423,650
33,688,587
$27,280,805
$40,112,237
$5,254,951
$5,464,773
6,543,059
$6,543,059
$5,528,934
$1,934,595
8,560,264
9,404,849
9,537,764
Appropriations from Retained Erngs. 0
Total Internal Service Funds $9,979,714
$11,865,688
$9,657,888
16,046,598
14,826,471
15,079,053
33,859,452
24,932,553
$33,859,452
$24,932,553
17,698,572
17,838,822
8,735,766
36,674,862
14,003,813
3,932,221
40,402,191
$152,201,373
$162,929,244
FY16 Budget by Revenue Type ‐ All Funds
Miscellaneous, 0.3%
Interest Earnings, 10.6%
Contributions, 6.0% Loan Proceeds/Contributions,
Interfund Transfers, 12.3%
Grants/Interlocal/Donations, 2.7%
Approp. from Fund Bal/Ret Earngs, 18.8%
Charges for Services, 9.9%
Fines and Forfeitures, 0.8%
Intergovernmental Revenue, 0.7%
Ad Valorem Taxes, 28.3%
Licenses and Permits, 4.3%
Sales and Use Taxes, 4.8%
Summary of Expenditure Classifications by Fund Type FY16 Budget
to FY2016 FY2013 FY2014 FY2015 FY2015 FY2016 FY15 Budget of
$23,152,234
$24,248,527
$14,313,554
$15,063,848
$14,227,724
9,491,442
10,996,731
17,196,806
20,402,362
20,532,596
2,176,581
65,287,136
74,709,616
$5,842,717
$7,982,456
7,988,016
$12,800,866
$72,717,522
$37,716,997
$36,352,181
26,175,866
40,112,237
1,523,659 761729.50%
$1,232,641
1,356,680
718,126
468.15%
5,154,599
5,528,934
4,112,830
4,858,913
2,500,986
1,435,627
11,865,688
9,657,888
$17,873,520
15,985,932
5,937,655
$24,525,730
$25,626,129
$26,480,036
$18,962,356
$20,460,360
$20,060,452
29,967,699
33,054,461
33,137,317
15,240,353
74,537,852
40,300,396
38,943,413
8,185,625
33,418,913
22,267,587
25,118,229
23,582,932
20,000,537
2,179,891
Interfund Transfers 14.2%
Salaries and Wages 15.9%
Employee Benefits 12.1%
Pursuant to adopted policy, the unassigned fund balance for the General Fund is to be maintained at a minimum level of 25% of current year General Fund budgeted expenditures. This minimum level is to be maintained to protect the Town against economic downturns, temporary revenue shortfalls, unpredicted one-time expenditures, and for tax rate stabilization purposes. During FY15, the Town Council approved a budget amendment transferring $6,600,000 from the unassigned fund balance to the Coastal Protection Fund. Twenty- five percent of the FY16 General Fund operating
budget (General Fund budget less coastal transfer) is $15,974,778. The FY15 estimated ending fund balance is $19,500,000. The unassigned fund balance exceeds the minimum requirement by
$3,525,222.
The General Fund Undesignated Fund Balance has consistently exceeded the required minimum level of 25%. The chart details the General Fund Undesignated Fund Balance and the percent of budgeted expenditures the balance represents. For the FY16 budget, a transfer of $944,686 from fund balance will be used to fund the contingency reserve as directed by policy.
The Par 3 Golf Course charges an additional $2 per round to fund a maintenance and improvement reserve. At the end of FY14, the balance is $279,252. In FY15 the Town Council approved a maintenance and improvement reserve for the Par 3 Club house which will be funded with a year- end transfer of 50% of the Par 3 golf course net profits. This reserve will be funded beginning with the FY15 year-end net profits.
For FY16, income including the depreciation transfer will total $2,187,319 and expenditures for capital equipment are budgeted at
$2,455,100.
$3,456,532. The FY15 appropriation for the pay-out of eligible accrued vacation, sick and compensatory time from this reserve is $640,900 and the FY16 appropriation will be $634,500.
For many years, the Town funded all of the capital infrastructure improvements through pay-as-you-go financing. In 2010, the Town issued the first of two bonds for capital improvements to accelerate many large scale capital improvement projects identified in the 20 year plan. The Capital Improvement Fund has received a $1,000,000 transfer from the General Fund each year since 2010 to fund small capital projects that were not included in the 20 year plan. Once the bond proceeds have been spent on the remaining projects, it is proposed to return to pay- as-you-go financing. The FY16 appropriation was
increased to $1,030,000 to begin to build the reserves for capital projects once the bond proceeds have been spent.
The Town’s OPEB Trust Fund was established in 2007 to comply with GASB Statements 43 and 54, which required the establishment of a liability for actuarially determined costs of retiree health benefits. This fund’s investments are overseen by the Town’s Investment Advisory Committee. The net asset balance in this trust is $27,628,798 as of September 30, 2014. The actuarially determined transfer from the General Fund for the OPEB liability for FY16 is
$1,180,000. The Town continues to be well ahead of other government agencies in funding this liability.
The table below identifies the contingency budgets and actual expenditures for the fiscal years 2012 through 2016.
Contingency Reserves FY2012 – FY2016
Reserve Balances Fiscal Years 2010 – 2015 Est.
2,874,680
7.767.408
5,635,416
29,045,190
213,011,073
$299,238,944
FY2016 Town‐wide Capital Expenditures
1,034,705
Opticom Emergency Response System
(3) Star Chase Units
(3) Dispatch Radio Consoles
(3) Police Supervisor Vehicles
Speed Laser/Radar Unit
38,815,003
40,011,538
Isuzu NP154 Truck
7,152,270
11,418,823
Par 3 – Golf Carts
Par 3 – Golf Cart, Driving Range
Par 3 – Golf Ball Dispenser
Par 3 – Greens Roller
Par 3 – Tractor with Bucket and Backhoe
Par 3 – Utility Vehicle
Town Docks Repairs
$38,815,003
$43,513,552
General Fund Revenue Expenditure Comparison FY2016
$3,045,915
$47,131,000 65.5%
$ 47,131,000
$ 71,914,331
311.100 Current Ad Valorem Taxes 37,376,601 39,080,698 43,424,300 43,858,543 47,131,000 8.54% 65.54%