TOWN OF PALM BEACH, FLORIDA
COMPREHENSIVE ANNUAL BUDGET FISCAL YEAR 2019
(October 1, 2018 - September 30, 2019)
Mayor and Town Council Gail L. Coniglio, Mayor
Danielle H. Moore, Town Council President Margaret Zeidman, Town Council President Pro-Tem
Julie Araskog, Town Council Member Lew Crampton, Town Council Member Bobbie Lindsay, Town Council Member
Town Manager Kirk Blouin
Prepared by the Finance Department Jane Struder, Finance Director
(561) 838-5400
ORGANIZAT
ORGANIZAT
IONAL STRUCTURE
CITIZENS OF PALM BEACH
ELECT
MAYOR
Gail L. Coniglio
MAYOR
Gail L. Coniglio
TOWN COUNCIL
PRESIDENT PRESIDENT PRO-TEM
Danielle H. Moore
Julie Araskog
Lew Crampton
Bobbie Lindsay
PRESIDENT PRESIDENT PRO-TEM
Danielle H. Moore
Julie Araskog
Lew Crampton
Bobbie Lindsay
Margaret A. Zeidman
Margaret A. Zeidman
APPOINTS
TOWN ATTORNEY
John C. Randolph
DEPUTY TOWN MANAGER
Jay Boodheshwar
DIRECTOR OF FINANCE
Jane Le Clainche
DIRECTOR OF HUMAN RESOURCES
Danielle Olson
FIRE-RESCUE CHIEF
Darrel Donatto
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TOWN MANAGER
Kirk Blouin
ADVISORY BOARD AND COMMISSIONS
DIRECTOR OF BUSINESS DEVELOPMENT & OPERATIONS
Vacant
DIRECTOR OF BUSINESS DEVELOPMENT & OPERATIONS
Vacant
DIRECTOR OF PUBLIC WORKS
H. Paul Brazil
DIRECTOR OF PUBLIC WORKS
H. Paul Brazil
DIRECTOR OF PLANNING, ZONING AND BUILDING
Josh Martin
DIRECTOR OF PLANNING, ZONING AND BUILDING
Josh Martin
ACTING POLICE CHIEF
Nicholas Caristo
ACTING POLICE CHIEF
Nicholas Caristo
THE BUDGET AS A POLICY DOCUMENT
As a policy document, the Budget indicates what services the Town of Palm Beach will provide during the upcoming fiscal year, and the reasons for these services. The Budget provides goals and objectives for each organizational unit in the Town of Palm Beach as well as the performance measures upon which programs will be monitored for the forthcoming fiscal year. All Town of Palm Beach funds are described in detail in their respective sections.
THE BUDGET AS AN OPERATIONS GUIDE
As an operations guide, the budget indicates how departments and funds are organized to provide services that will be delivered to the community. The Departments’ budget sections provide a mission statement, goals and objectives, organization chart, authorized personnel, revenue and expenditure summaries with descriptions, and performance measures for each Town of Palm Beach Department.
THE BUDGET AS A FINANCIAL PLAN
As a financial plan, the budget outlines the cost of the Town of Palm Beach services and how they will be funded. The Revenues and Expenditures Section provides an overview of the Budget including major revenue and expenditure breakdowns and categories for the following Funds: General, Special Revenue Funds, Debt Service, Capital, Enterprise, Internal Service Activity and Trust & Agency. The introductory section includes a budget message, Town-wide goals, demographic information, assessed value and millage rate information, Town history, a discussion of the Town of Palm Beach accounting structure and financial policies, a description of the budget preparation process and the financial structure. The budget summary section details the approved budget as well as a comparison of financial activity over a multi-year period with an analysis of the Town reserves.
THE BUDGET AS A COMMUNICATIONS DEVICE
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A STEP BY STEP GUIDE
A STEP BY STEP GUIDE
Given its size and the variety of information it contains, the budget document can be an overwhelming undertaking to review. The purpose of this section is to provide the reader with a guide to the document’s contents: where and how to find the information and how to understand or use the information.
The budget document has been prepared in a summary format intended to be easily understood by the general public. The following describes each of its major sections:
Introduction
The budget message or transmittal letter is the best place to start. It is most important in understanding where we have been and where we are going in the upcoming year. The letter provides a broad perspective of services provided and discusses taxes and millage rates, changes in operations, significant differences in revenues and expenditures, and the focus and direction of the budget year.
The introduction section also includes general information about the Town, its budget philosophy and process, financial policies (which form the foundation of the Town’s budget development and financial management processes), and other general information.
Budget Summary, General Fund, Revenues, Expenditures, Departmental Tabs and Other
The Budget Summary, General Fund, Revenues, Expenditures including Departmental and Other tabs include various presentations of the general fund budget. The Budget Summary section includes summary budget information for all funds and an analysis of Town reserves. The General Fund section includes a financial trend analysis of Revenues and Expenditures. The Revenues tab includes a detailed five-year general fund revenue history, as well as narrative and charts regarding major general fund revenue history. The Expenditures tab includes an exhibit containing four years of expenditure history by program, as well as summary budget charts.
An overview of each department/program, the largest portion of the General Fund budget, is included in this section. Each department’s section may include the following: A revenue and expenditure summary, personnel complements, an organizational chart, mission statement, goals and objectives, performance measures and workload indicators.
Special Revenue, Debt Service, Capital, Enterprise, Internal Service and Trust & Agency Funds
These sections include budget summaries, program descriptions, trend analyses and income statement analyses for the Town’s governmental (other than general), enterprise, internal service and trust & agency funds.
Appendix
The appendix includes property tax and millage rate schedules, donation reserve account detail, financial policies, historical staffing levels, and other exhibits that may be helpful to the reader.
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We sincerely hope this “how-to” has aided in finding and understanding information contained in the Town’s budget. If any point is unclear, or if additional information is necessary, please call the Finance Department at (561)838-5444. Should the same requests repeatedly occur, we will make an effort to incorporate clarifications in next year’s budget document.
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GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished Budget Presentation Award
PRESENTED TO
Florida
For the Fiscal Year Beginning
October 1, 2017
Executive Director
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Introduction
*This table of contents includes hyper links to help navigate the document better. To use hover the mouse over the section you would like to jump to and click.
Strategic Planning and Key Results Measurement 23
Introductory Information
Assessed Valuation and Millage Rate 33
Long-Term Financial Plan Forecast 55
Budget Summary
Budget Summary by Fund Type, Revenues and Expenditures 68
Summary of Major Revenues by Fund Type 70
Summary of Expenditure Classifications by Fund Type 72
General Fund
General Fund Revenues and Expenditures Budget Comparison 85
Revenues
Expenditures
Legislative
General Government
Town Manager
Town Manager’s Office Organization Chart 112
Administrative Management (121) 113
Town Clerk
Advice and Litigation
Advice and Litigation (122). 122
Information Technology
Information Technology Organization Chart 124
Information Technology (125) 124
Human Resources
Human Resources Organization Chart 130
Finance
Finance Organization Chart 140
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Finance Department Revenue and Expenditure Summary 142
Financial Management (141) 144
Planning, Zoning and Building
Planning, Zoning and Building Organization Chart 152
Planning, Zoning and Building Department Revenue and Expenditure Summary 154
Inspection and Compliance (213) 162
Landmarks Preservation (214) 164
Recreation
Recreation Organization Chart 172
Recreation Department Revenue and Expenditure Summary 174
Recreation Administration (311) 176
Fire-Rescue
Fire-Rescue Department Organization Chart 186
Fire-Rescue Department Revenue and Expenditure Summary 189
Police
Police Department Organization Chart 204
Police Department Revenue and Expenditure Summary 207
Administrative Management (421) 209
Organized Crime Vice and Narcotics – OCVAN (422) 212
Records Information System Unit (423) 214
Training and Community Relations Unit – TCR (424) 216
Crime Scene/Evidence Unit (426) 221
Criminal Investigation Unit (429) 227
Parking Control Unit (430) 229
Public Works
Public Works Department Organization Chart 232
Public Works Department Revenue and Expenditure Summary 236
Administrative Management (511) 238
Street Repair and Maintenance (521) 240
Storm Sewer Maintenance (531) 246
Sanitary Sewer Maintenance (532) 249
Sanitary Sewage Treatment (533) 252
Residential Collection (541) 253
Commercial Collection (542) 255
Yard Trash Collection (544) 258
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Landscape Maintenance (551) 263
Facility Maintenance (554) 265
General Engineering Services (561) 267
Right of Way Inspections (565) 270
Equipment Operation and Maintenance (571) 272
Other
Transfers to Other Funds (611 to 625) 277
Emergency Management (710) 278
Contingent Appropriations (711) 279
Special Revenue Fund
Town-wide Underground Utilities Fund 281
Debt Service
2016A and 2013 Revenue Bonds (Fund 205) 288
2016B Worth Avenue Revenue Bond (Fund 206) 289
Capital Funds
Impact of Capital Investments on Operating Budget 292
Capital Projects by Project Type and Fund 293
Capital Improvement Fund (Fund 307)
Five Year Capital Improvement Pay-as-you-go/Facilities Program 295
Pay-as-you-go Capital Improvement Fund 297
Comprehensive Coastal Management Plan Bond Proceeds Construction Fund (Fund 309)
CCMP FY18 Accomplishments and FY19 Action Plan 299
Comprehensive Coastal Management Project Fund 308
Coastal Management Program Budget 311
Worth Avenue Assessment District (Fund 311)
Accelerated Capital Fund (Fund 314)
2013 Accelerated Capital Projects Fund. 315
Accelerated Capital Improvement Program Budget Report 316
Project Fact Sheets
E-1, E-2 & G-1 Sanitary Sewer Pump Station Improvements (Design/Construction) 317
E-3, E-4 & G-9 Sanitary Sewer Pump Station Improvements (Design) 318
A-4 the Breakers & A-5 Sanitary Pump Station Improvements (Design) 319
North End Paving & Drainage – Onondaga Ave (Construction) 321
Lake Trail Improvements from Royal Palm Way to Reef Road (Construction) 322
D-16 & D-18 Stormwater Pump Station Improvements (Design) 327
D-2 & D-17 Stormwater Pump Station Improvements (Design) 328
Landfill/Facility Improvements (Design and Construction). 330
Mid-Town Bathroom & Lifeguard Building Improvements (Construction) 332
Phipps Ocean Park – North Restroom Improvements (Construction) 333
Clarke Avenue and Bradley Place Mast Arm Replacements/Upgrades 334
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Pendleton Avenue and Cocoanut Row Mast Arm Replacements/Upgrades 335
Seabreeze Avenue and Cocoanut Row Mast Arm Replacements/Upgrades 336
Street Lighting Upgrades – South Ocean Boulevard, Sloan’s Curve to Lake Avenue ... 337
Town Docks Enterprise Fund (Fund 401)
Town Docks Revenue and Expense Summary 342
Golf Course Enterprise Fund (402)
Golf Course Revenue and Expense Summary 350
Par 3 Golf Course 5-year Capital Improvement Plan 357
Internal Service Funds
Self Insurance – Risk
Self Insurance Fund – Risk Management (Fund 501) 359
Self Insurance – Health
Self Insurance Fund – Health Benefit (Fund 502) 363
Equipment Replacement Fund
Equipment Replacement Fund (Fund 320) 365
Trust and Agency Funds
Employees Retirement System (Fund 600)
Health Insurance Trust (Fund 610)
Retiree Sliding Scale Insurance Premium Rates 2019 385
Appendix
Donation Reserve Account Summary 395
Financial Policies
Designation of General Fund Balance - Liability Related to Compensated Absences Leave Balances 404
Contingency Reserve – General Fund 405
Reserve for Encumbrances, Continuing Appropriations, and Prepaid Expenses 406
Contingency Reserve – Capital Fund 410
Contingency Reserve – Equipment Replacement Fund 411
Equipment Replacement Reserve 412
Contingency Reserve – Enterprise Fund 413
Repair and Replacement Reserve – Town Docks Enterprise Fund 414
Town Dock Enterprise Fund Unrestricted Net Position 415
Repair and Replacement Reserve – Golf Course Enterprise Fund 416
Equipment Replacement Reserve – Golf Course Enterprise Fund 417
Contingency Reserve – Risk Fund 418
Reserve for Catastrophic Exposures/Emergencies – Risk Fund 419
Contingency Reserve – Health Insurance Fund 420
Funding Policy for the Town of Palm Beach Retirement System 421
Index
Glossary
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TOWN OF PALM BEACH EXECUTIVE SUMMARY FY2019 BUDGET
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Executive Summary
Town of Palm Beach, Florida
October 1, 2018
Honorable Mayor, Town Council and Residents of the Town of Palm Beach;
I am pleased to present the Comprehensive Annual Budget for the Town of Palm Beach for the fiscal year beginning October 1, 2018 and ending September 30, 2019, in accordance with Section 2-541 of the Town’s Code of Ordinances and Chapter 95-495 of the laws of the State of Florida. The budget was prepared to comply with generally accepted accounting principles (GAAP) and all applicable Town, State and Federal requirements. After careful review by the Mayor and Town Council in several public meetings, formal citizen input was invited at two (2) public hearings. The final budget adoption occurred on September 20, 2018.
The FY2019 budget, represents staff’s initial efforts to reduce expenditures and begin reorganizing Town operations to ensure the most efficient and effective delivery of high quality public services. The goal was to come up with $5,420,000 in expenditure cuts or revenue enhancements and we have met this goal. A thorough review of each departments’ budget and their operations was completed. Through this process, we examined each expenditure line by line and we were able to reduce expenditures in all department budgets, which includes the reduction of 14.65 FTEs, of which two have been supplanted by contractual services. Each Department is presenting a FY19 operating budget that is less than the LTFP and less than their FY18 budgets.
The budget is the result of the initial work in finding efficiencies and applying lean government principles on a Town-wide basis. This is a continuous process as there is still more work to be done. We expect to see further reductions in both expenditures and positions in FY20 and beyond. Through attrition, each position and its related responsibilities will be examined to determine if the position is still needed or can be restructured before automatically backfilling.
We have made significant progress with procedural improvements in the procurement process and the sale of surplus equipment. For the fiscal year the Purchasing staff has measurably generated $1,896,340 in cost savings through negotiations of awards, and re- structuring of contracts to allow for Direct Owner Purchases. We have generated more competition, conducted more active negotiations and have adopted better business practices. Staff has implemented a new process for the sale of surplus items online. Not only is this process more efficient and saves costs in transportation, overtime and seller premiums, it also has generated additional sale revenues due to more aggressive bids. Since
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Executive Summary
November 2017, we have received $375,502 from the sale of surplus items. During the same period in FY17, the Town received payments of $25,056 for surplus sales.
We have recommended a reduction of the UAAL amortization period from 25 years to 15 years. This change will cost an additional $1,440,000 in FY19 but the total interest expense savings over the next 25 years versus the current 25-year amortization is $47,800,000. With this change, and the additional contribution of $5,420,000, the UAAL could be completely eliminated in approximately 10 to 11 years. The Town is currently paying interest expense on the UAAL at a rate of 7.3%, leading to an annual interest payment of over $7.1 million and a current principal payment of less than $1 million. The high interest expenses the Town is incurring under the current amortization plan is not fiscally prudent. Therefore, included in the FY19 budget is funding for the 15 year amortization plan.
Once the pension plan is fully funded at 100%, the new annual obligation will be roughly
$1.5 million (in today’s dollars) which will eliminate the need for the current payment levels of over $16 million. The funding for this change to the amortization period is included in the budget with no increase in taxes for a homesteaded property owner.
We worked with the actuary to develop alternatives to reduce the UAAL more quickly. The following options were considered:
Current 25 | 20 Year | 15 Year | 10 Year | |
Annual Cost | 9,300,000 | 9,870,000 | 10,740,000 | 13,580,000 |
Additional Cost over current payment | 570,000 | 1,440,000 | 4,280,000 | |
Interest Savings | 26,900,000 | 47,800,000 | 73,500,000 |
This matter will be considered at a joint meeting of the Town Council and Retirement Board in November.
Another major change that was made in the FY19 budget was the elimination of the Recreation Enterprise Fund and the creation of two independent business enterprise funds for the Town Docks and Par 3 Golf Course. The Recreation Administration, Recreation Center and Tennis program expenses and revenues have been transferred into the General Fund. These actions effectively resets the budgeting models for these programs as they were in FY2003, before the Recreation Enterprise Fund was created. The transfer from the Town Docks and Par 3 is set at an amount to cover the Recreation and Tennis expenditures so the net effect on the General Fund is $0 for this transitional year. This change will allow for better transparency, relative to the expense/revenue ratios for each individual program/facility.
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Executive Summary
General Fund
Historical Trends – Expenditures
For purposes of this discussion, we are providing the spreadsheet following this section to illustrate the trend in expenditures by category since 2009 to enable the reader to understand where the growth has come from and to better understand how the FY19 budget compares to previous fiscal years. We compare the FY19 budget first to FY12 because it was the lowest total budget year in the past decade. We also describe the change since FY09 because that was the highest budget year to date and the catalyst for future budget reforms.
The years FY2009 through FY2017 represent actual costs, FY2018 numbers are the adopted budget, and FY2019 represents the adopted budget.
The overall General Fund expenditures have increased since FY09 by a total of 23.43% or 2.13% per year for the last 11 years. Since FY12, expenditures have increased by 45.85% or 5.7% per year for the past 8 years. We highlight operating expenditures on the spreadsheet to differentiate the costs of the day-to-day operations versus other expenditures of the Town, such as capital improvements, coastal project and large transfers to various funds. Since FY09, operating expenditures have decreased $107,733 or -.19%, and since FY12, operating expenditures have increased by $10,377,455 or 22.76%. Transfers and other expenses since FY09 have increased by 158.66% or $15,544,579 and since FY12, these expenses have increased $14,694,952 or 138.02%. Highlights of the major increases since FY12 are described below:
The largest driver of expenditure increases since FY12 were pension costs for current employees and retirees receiving legacy benefits, which increased $6,075,225 plus the extraordinary contribution of $5,420,000 and the additional $1,440,000 to reduce the amortization period. These costs represent 51.6% of the General Fund total increase during this time period.
The next largest increase was the transfer to the coastal protection fund, which increased $3,389,124 or 13.5% of the total. In FY15, $4,777,000 was added to Town taxes to begin developing a permanent funding source for the coastal program.
Contractual costs have increased $2,787,868 (11.12% of the total) over the period due in part to contracting out many Town services that used to be performed by Town staff. Increases in sewage treatment and disposal costs alone contributed to the increase of contractual costs by $1,011,752 since 2012, with a $444,460 increase in FY19 alone.
Debt service costs increased $2,494,738 or 9.95% of the total increase since 2012 due to the issuance of the 2013 revenue bonds.
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Executive Summary
These four expenditures represent 86.2% of the increase over FY2012. Other important budget trends since FY12 include the following:
Salary and wages increased $1,994,450 or 8.44% over the 8-year period representing a 1.21% average annual increase. Salary freezes, employee turnover and a modified merit pay system have kept these costs down.
Since 2012, total FTEs have decreased from 362.65 to 356.22, with all of the decrease occurring in the FY19 budget through the elimination of 14.65 positions.
Employee benefit costs over this time period have decreased by 14.33% or
$1,160,495. Most of this reduction is due to the decrease in the OPEB trust funding. It is important to note that during this period Town employee health insurance costs have declined $20,227, while health insurance costs nationwide experienced increases.
The longevity and performance bonus program also decreased by $166,274 over the 8-year period.
Depreciation costs have increased $560,844 during this time period due to higher costs for the Town’s large heavy duty equipment and vehicles, despite the elimination of some equipment and extending the life of most equipment.
The Four Arts Library funding has increased $72,658 due to the programmed 3% per year increase in funding plus an additional contribution in FY17. The total contribution to the Four Arts Library for FY19 is $345,058.
The other category increases which include commodities, and Risk Insurance increased by less than the rate of inflation over this time period.
To put the FY19 budget into further context, if we were to look back 11 years and compare the FY19 budget to the FY09 budget:
Total expenditures have increased by 23.43% (2.13% annually) and total operating costs decreased $107,733 or -.19%.
The pension costs including the annual required contribution, the extraordinary contribution and the additional funding to lower the amortization period contributed to 62.9% of the total increase for a total of $9,716,547.
Salary costs decreased by $1,724,743 and benefit costs declined by $1,984,535. Total FTEs decreased from 410.39 in FY09 to 356.22 in FY19, a decrease of 54.17 employees.
Contractual costs increased by $1,093,779 or 12.55%. This increase is due to contracting out services and increases in sewage treatment and disposal costs.
The Transfers and other category, which include funding for the Four Arts Library, debt service, coastal funding, capital improvement funding, risk funding, the recent extraordinary retirement contribution, and the funding for the amortization change in total have increased $15,544,579 or 138.32% over the 10-year period and accounted for all (100%) of the total increase.
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Executive Summary
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Executive Summary
Expenditure Category | FY2009 | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 | Change vs. FY09 | Average Annual Change | Change vs FY12 | Average Annual Change |
Salary and Wages | $ 27,346,561 | $ 26,359,068 | $ 24,396,539 | $ 23,627,368 | $ 22,943,977 | $ 23,152,234 | $ 23,478,696 | $ 23,581,855 | $ 24,128,637 | $ 26,001,862 | $ 25,621,818 | -6.31% | -0.57% | 8.44% | 1.21% |
Pension Benefits | 6,632,860 | 7,315,310 | 8,783,472 | 3,414,182 | 4,380,925 | 6,078,882 | 6,598,873 | 7,324,860 | 8,803,246 | 9,527,616 | 9,489,407 | 43.07% | 3.92% | 177.94% | 25.42% |
Other Employee Benefits | 8,922,275 | 8,451,690 | 8,122,789 | 8,098,235 | 8,493,967 | 8,234,672 | 8,245,397 | 7,795,982 | 8,072,606 | 7,844,571 | 6,937,740 | -22.24% | -2.02% | -14.33% | -2.05% |
Contractual | 8,713,162 | 7,120,084 | 6,841,604 | 7,019,073 | 7,227,726 | 7,615,442 | 8,191,691 | 8,876,317 | 9,585,132 | 9,617,449 | 9,806,941 | 12.55% | 1.14% | 39.72% | 5.67% |
Commodities | 1,744,703 | 1,623,373 | 1,492,316 | 1,557,897 | 1,574,948 | 1,633,364 | 1,518,113 | 1,471,130 | 1,844,873 | 1,949,093 | 1,724,613 | -1.15% | -0.10% | 10.70% | 1.53% |
Depreciation/Capital Outlay | 2,723,701 | 2,518,061 | 2,547,679 | 1,881,319 | 2,033,744 | 2,097,896 | 1,892,941 | 2,858,675 | 3,053,650 | 2,459,607 | 2,395,010 | -12.07% | -1.10% | 27.30% | 3.90% |
Subtotal Operating Expenditures | 56,083,262 | 53,387,586 | 52,184,399 | 45,598,074 | 46,655,287 | 48,812,490 | 49,925,711 | 51,908,819 | 55,488,144 | 57,400,198 | 55,975,529 | -0.19% | -0.02% | 22.76% | 3.25% |
Library | 272,400 | 272,400 | 272,400 | 272,400 | 288,989 | 297,659 | 306,580 | 315,777 | 350,250 | 335,008 | 345,058 | 26.67% | 2.42% | 26.67% | 3.81% |
Transfer to the Risk Insurance Fund | 1,918,000 | 1,904,463 | 1,896,226 | 1,791,507 | 1,892,780 | 1,876,000 | 1,925,362 | 1,934,595 | 1,838,037 | 1,828,475 | 1,898,059 | -1.04% | -0.09% | 5.95% | 0.85% |
Transfer to Capital Improvement Program | 1,817,000 | 4,828,957 | 500,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,030,000 | 2,290,200 | 1,988,024 | 2,200,000 | 21.08% | 1.92% | 120.00% | 17.14% |
Transfer to Underground Utility Fund | - | - | - | - | - | - | 2,530,250 | 267,041 | 130,000 | 135,000 | #N/A | #N/A | #N/A | #N/A | |
Transfer to the Debt Service Fund | 3,790,000 | 3,922,000 | 3,500,000 | 3,500,000 | 3,500,000 | 6,100,000 | 6,100,000 | 6,265,462 | 6,088,728 | 5,982,331 | 5,994,738 | 58.17% | 5.29% | 71.28% | 10.18% |
Transfer to Coastal Protection Fund | 2,000,000 | 1,046,900 | 3,090,000 | 3,960,000 | 4,765,099 | 7,200,000 | 11,377,000 | 8,015,220 | 7,265,000 | 7,410,300 | 7,349,124 | 267.46% | 24.31% | 85.58% | 12.23% |
Extraordinary Transfer to Retirement Fund | - | - | - | - | - | - | - | - | 2,500,000 | 4,759,016 | 5,420,000 | #N/A | #N/A | #N/A | #N/A |
Additional Contribution for UAAL Amortization | - | - | - | - | - | - | - | - | - | - | 1,440,000 | #N/A | #N/A | #N/A #N/A | #N/A #N/A |
Contingency | - | - | - | - | - | - | - | - | 655,877 | 560,000 | #N/A | #N/A | |||
Subtotal Transfers and Contingency | 9,797,400 | 11,974,720 | 9,381,746 | 10,647,027 | 11,446,868 | 16,473,659 | 20,708,942 | 20,091,304 | 20,599,256 | 23,089,031 | 25,341,979 | 158.66% | 14.42% | 138.02% | 19.72% |
Total General Fund | 65,880,662 | 65,362,306 | 61,566,145 | 56,245,101 | 58,102,155 | 65,286,149 | 70,634,653 | 72,000,123 | 76,087,400 | 80,489,229 | 81,317,508 | 23.43% | 2.13% | 44.58% | 6.37% |
FTE Totals | 410.39 | 399.98 | 367.33 | 362.65 | 353.94 | 348.94 | 360.18 | 365.09 | 362.87 | 370.87 | 356.22 | (54.17) | -13.20% | (6.43) | -1.77% |
FY19 Budget Presentation
The FY19 budget is summarized in the remaining pages of the executive summary. Additional information can be found online such as the program-by-program detail of the General fund and other fund budgets and the budget “flex sheets” which show the budget detail by line item and the budget detail sheets for certain accounts throughout the General Fund. The detail sheets represent the detail that the budget team was presented when we began the budget review process. They have not been updated to reflect cuts that were made during this year’s intensive budget review.
To ensure full transparency, relative to the methodology for apportioning health insurance and retirement costs, please note the following:
Health Insurance costs are calculated and then allocated throughout the budget on a per Full-Time Equivalent (FTE) basis. The Health costs per FTE for FY19 is $10,511.
Retirement costs are actuarially determined and then allocated throughout the budget per FTE for current and legacy plan costs. The Town’s actuarially determined contribution is $9,631,447. Legacy plan costs represent $8,085,882 of the total and the costs for the ongoing plan are $1,545,564. The breakdown by employee group is shown below.
FTE | Legacy Plan | Ongoing plan | Total Contribution | |
General | 192 | 2,282,428 | 758,907 | 3,041,336 |
Lifeguard | 3 | 178,457 | 13,131 | 191,588 |
Police | 63 | 2,543,329 | 392,711 | 2,936,040 |
Fire-Rescue | 65 | 3,081,669 | 380,815 | 3,462,484 |
Total | 323 | 8,085,882 | 1,545,564 | 9,631,447 |
FY19 General Fund Revenues
The General Fund is the only fund to directly use property taxes as a revenue source. Property taxes (ad valorem taxes) represent the largest revenue source. Appearing on the following page is a millage rate table that shows the FY19 adopted millage (highlighted in blue) versus the FY18 millage. The FY19 millage rate represents a 2.14% reduction from FY18, which is a $0 increase for homesteaded properties.
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FY18 Millage Rate | FY19 Millage Rate | |
Millage Rate | 3.2037 | 3.1350 |
Tax Revenue | $51,470,500 | $54,210,963 |
Revenue Increase over FY18 | n/a | $2,740,463 |
Millage % Increase/Decrease vs. FY18 | n/a | -2.14% |
Homestead Value Increased by 2.1% | $1,000,000 | $1,021,000 |
Town Taxes | $3,044 | $3,044 |
Increase/(Decrease) over FY18 | n/a | $0 |
Non Homestead Tax Increase Ave 7.75% | n/a | $174 |
The State of Florida requires the Town to calculate a rolled-back millage rate. The rolled- back rate is defined as the millage rate which provides the same property tax revenue for each taxing authority as was levied during the previous year (exclusive of new construction, additions, rehabilitative improvements increasing assessed value by at least 100%, annexations, deletions). The FY19 millage is 5% over the rolled back rate of 2.9857. The rolled-back millage rate would represent a 6.8% decrease in the millage and would provide the homestead property owner a $145 per million reduction in taxes.
There are a number of revenue types in the General Fund, categorized on the table below:
Revenue | FY2018 | FY2019 | FY18 vs. FY19 Difference | % Change |
Ad Valorem Taxes | $ 51,470,500 | $ 54,210,963 | $ 2,740,463 | 5.32% |
Non Ad Valorem Taxes | 6,150,000 | 6,307,000 | 157,000 | 2.55% |
Licenses & Permits | 9,947,975 | 10,634,108 | 686,133 | 6.90% |
Intergovernmental | 1,185,450 | 1,076,255 | (109,195) | -9.21% |
Charges for Services | 3,943,650 | 4,395,558 | 451,908 | 11.46% |
Fines and Forfeitures | 1,138,800 | 1,171,000 | 32,200 | 2.83% |
Investment Earnings | 581,858 | 828,000 | 246,142 | 42.30% |
Miscellaneous | 420,000 | 384,964 | (35,036) | -8.34% |
Interfund Transfers | 585,000 | 2,087,581 | 1,502,581 | 256.85% |
Transfers from unassigned fund balance for Extraordinary Transfer to Retirement Fund | 3,500,000 | - | (3,500,000) | -100.00% |
Transfers from unassigned fund balance for Contingency and Compensated Absences | 1,565,996 | 1,370,789 | (195,207) | -12.47% |
Total Revenues | $ 80,489,229 | $ 82,466,218 | $ 1,976,989 | 2.46% |
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Significant highlights for General Fund FY19 revenues include:
Based upon the Property Appraiser's Preliminary Certification issued July 1, 2018, existing property taxable values in the Town have risen 7.75% over the prior year. The total taxable value is $18,202,287,698.
There were several revenue increases approved during the Comprehensive Review
of Town Operations (CROTO) and the estimated revenues are included in the FY19 revenue projections. These revenues and the associated increases are shown below:
Increase in ARCOM fees (+$163,000)
Increase for Right of Way Permits (+$80,000)
An increase in the Lien Search Fee (+$35,000)
An increase in the rates for special garbage pick-up service (+$3,000)
A new fee for private lateral locates and a cap-off and connection inspection fee (+$18,000)
Increase in voluntary ID card fee (+$9,850)
Increase in Valet Parking Permit Fees (+2,800)
The Non Ad Valorem tax revenue has increased based on current trends.
The increase in Licenses and Permits is based on current trends in permit revenue and the increase in the ARCOM fee mentioned above.
Intergovernmental revenue is decreasing due to grants that were budgeted in FY18 that are not expected for FY19.
Charges for services are increasing slightly because of the increases in the fees shown above for lien searches, special pick up services and new fees for private lateral locates. Parking meter charges are expected to increase slightly due to current trend. These increases are offset by declines in special detail overtime revenue due to a decline in utilization as well as decreases in other public safety revenue trends. In addition, Recreation and Tennis fees are added into this category.
Fines and forfeiture revenue increased based on historical trends.
The interfund transfers represent a transfer of $1,307,160 from the Town Docks and Par 3 Golf Course enterprise funds and a transfer from the Equipment Replacement Fund for funds that were set aside for the beach cleaning equipment that will not be replaced and the savings on the purchase of the quint fire truck totaling $780,421.
General Fund Expenditures
General Fund expenditures have increased by 2.46% from FY18 after the addition of the Recreation programs. A summary of expenditures by category is shown on the following page:
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Expenditure Category | FY2018 | FY2019 | FY18 vs. FY19 Difference | % Change |
Salary and Wages | $ 26,001,862 | $ 26,200,355 | $ 198,493 | 0.76% |
Pension Benefits | 9,527,616 | 9,648,558 | 120,942 | 1.27% |
Other Employee Benefits | 7,844,571 | 7,094,515 | (750,056) | -9.56% |
Contractual | 9,617,449 | 10,000,741 | 383,292 | 3.99% |
Commodities | 1,949,093 | 1,775,363 | (173,730) | -8.91% |
Depreciation/Capital Outlay | 2,459,607 | 2,404,707 | (54,900) | -2.23% |
Subtotal Operating Expenditures | 57,400,198 | 57,124,239 | (275,959) | -0.48% |
Library | 335,008 | 345,058 | 10,050 | 3.00% |
Transfer to the Risk Insurance Fund | 1,828,475 | 1,898,059 | 69,584 | 3.81% |
Transfer to Capital Improvement Program | 1,988,024 | 2,200,000 | 211,976 | 10.66% |
Transfer to Underground Utility Fund | 130,000 | 135,000 | 5,000 | 3.85% |
Transfer to the Debt Service Fund | 5,982,331 | 5,994,738 | 12,407 | 0.21% |
Transfer to Coastal Protection Fund | 7,410,300 | 7,349,124 | (61,176) | -0.83% |
Extraordinary Transfer to Retirement Fund | 4,759,016 | 5,420,000 | 660,984 | 13.89% |
Additional Contribution for UAAL Amortization | - | 1,440,000 | 1,440,000 | #N/A |
Contingency | 655,877 | 560,000 | (95,877) | -14.62% |
Subtotal Transfers and Contingency | 23,089,031 | 25,341,979 | 2,252,948 | 9.76% |
Total General Fund | 80,489,229 | 82,466,218 | 1,976,989 | 2.46% |
FTE Totals | 370.87 | 356.22 | (14.65) | -3.95% |
Highlights for General Fund expenditures are as follows:
Total operating expenditures decreased $275.959 or .48% from FY18. Total transfers and other expenses increased $2,252,948 or 9.76%.
Operating Expenditures:
Salary and wages increased $198,493 due to a reduction of 14.65 FTEs offset by the addition of the Recreation and Tennis personnel. The budget also includes merit pay increases ($377,030) and a 3% adjustment to the pay ranges ($165,490). Since a compensation and benefit study will not be completed and implemented until FY20, the current merit pay structure was maintained. Current CPI inflation for the Miami- Fort Lauderdale-West Palm Beach, FL area through April was 3.5%, the prior reading as of February showed 3.2% growth.
The total annual required contribution for the defined benefit plan (DB) and defined contribution (DC) pension benefits increased by a total of $120,942. This increase is due to the addition of the Recreation and Tennis personnel offset by the early payment discount applied to the actuarially determined employer contribution. Defined Contribution costs decreased by $18,018 because of the reduction in staffing. It is important to note that 83.4% of the pension costs represents the costs associated with the legacy pension plan.
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Other employee benefit costs decreased by $750,056 or 9.56%. Health insurance decreased by $249,372 due to improved claims performance and fewer employees. The Longevity/Bonus program decreased by $21,906 due to the phasing out of the longevity program accomplished through retirements. The cell phone allowance decreased by $49,729 due to the reductions in the stipend provided to the employee.
Included in Other Employee Benefits is the Transfer to the OPEB trust. The transfer to the OPEB trust fund decreased by $524,617 from $960,000 in FY18. In the recent actuarial report, the Town’s funding level increased to 113.2% funded. The Town Council requested a recommendation from the Investment Advisory Committee regarding the investment return assumption and Town contribution into the plan. The Committee recommended a reduction in the investment return assumption from 7% to 6.5%, which will take the funded ratio of the plan from 113.2% to 105.1%. The Town’s contribution at this rate is $435,383 for FY19. This recommendation will allow less exposure to market volatility if returns are below the estimated benchmark and if retiree health claims are higher than anticipated.
Most of the increase in contractual costs ($383,292) is due to an increase from West Palm Beach for the sewage treatment and disposal costs of $444,460. Contractual costs would have decreased by $61,168 without the increase for sewage treatment.
The decrease in commodities is mostly due to decreases in office and maintenance supplies ($17,343), fuel, software and minor computer and equipment ($184,383), memberships dues ($17,810), subscriptions ($19,289), and training ($14,557).
Depreciation/Capital outlay costs decreased due to reductions in the purchase of equipment in FY19 versus FY18 ($131,965). This decrease was partially offset by an increase in depreciation on new equipment ($67,368) and the addition of Recreation depreciation expenses.
The funding for the Four Arts Library increased by 3%, which is the planned annual increase. In 2010, in the midst of the recession, the Four Arts Library funding was frozen at $272,400 until FY13 when an increase of 6% was granted. Since FY13, the Town has provided a 3% increase to their funding each year and in FY17 gave the Four Arts an additional $25,000. In the future, we believe the increase for the Four Arts Library should be tied to the local inflation amount with a cap set at 3%.
Transfers and Other:
The transfer to the Risk Fund increased by $69,584 due to anticipated increases in the fixed costs of property, liability and worker compensation insurance.
The transfer to the Capital Improvement Fund increased by ($211,976) or 10.66% over FY19. The increase is to build up reserves for future capital projects once the ACIP II bond proceeds have been spent which should occur in FY19. We will be analyzing these expenditures in the future to prioritize all capital projects and possibly use these funds for other purposes.
The transfer to the Underground Utility Fund represents the transfer of funds to pay for the Project Manager’s salary and benefits.
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Executive Summary
The transfer to the debt service fund increased by $12,407. This increase is the result of an increase due to the transfer of bond funds from the coastal protection fund to the ACIP program since most seawall and groin work will not be completed by the deadline to spend the bond funds. This transfer caused an increase in the general fund transfer to the debt service fund of $192,431. This increase to the general fund is offset by a decrease in the transfer to the coastal protection fund. In addition, the Town Council approved during the CROTO, the use of the debt service reserves of
$1,500,000 to lower the annual transfer by $187,500 from the General Fund.
Coastal funding decreased by $61,176 due to the above mentioned transfer of debt service.
The extraordinary transfer to the retirement fund to accelerate improvements to the UAAL increased by $660,984. The transfer in FY18 was comprised of the budgeted
$4,759,016, a supplemental contribution in FY17 of $300,000 using the DC savings and forfeiture funds, and $360,984 in excess contributions made in FY17 and FY18 over the annual required contribution totaling $5,420,000. In order to fund the
$4,759,016 in FY18, The Town Council approved a transfer of $3,500,000 from the General Fund reserves, FY18 budget cuts of $1,200,000 and $59,016 from property taxes. In FY19, the full $5,420,000 is funded through the budget without any transfers from reserves.
As mentioned earlier, $1,440,000 is included in the budget to fund the cost of reducing the UAAL amortization from 25 years to 15 years. In just reducing the amortization period, $47,800,000 in interest savings will be realized. We believe this is a fiscally prudent recommendation that will allow for a much faster reduction in the UAAL.
Contingency is funded at 1% of operating expenditures. Absent extraordinary unforeseen circumstances, this amount should be enough to cover unexpected expenditures.
Fund Balance
The General Fund Unassigned Fund Balance as of September 30, 2017 was $17,716,419. This amount was $1,165,947 above the policy required minimum. The FY19 budget includes a transfer of $560,000 from fund balance to fund the contingency reserve and $810,789 from the reserve for compensated absences to fund the compensated absence payouts. After the contingency transfer, the remaining “excess” balance remaining in unassigned fund balance will be $605,947.
Based on estimated results for FY18, we expect to add an estimated surplus of over $4 million to the unassigned fund balance once the FY18 year-end balances are finalized. This surplus is the result of many vacant positions that have not been filled and higher than anticipated revenues for building and other permits.
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Personnel Complement
The total personnel complement (for all funds Townwide) for FY19 is 356.22 full-time equivalent personnel (FTEP), which is a decrease of 14.65 FTEP from the adopted FY18 budget. A chart of the FTEP by department is shown on the following page with the entire history back to FY09. The decrease of 14.65 FTEs in FY19 is made up of the following position eliminations:
Communications specialist
Office Assistant in Town Clerk’s Office
Town Nurse (contracted service)
Accountant
Courier/Warehouse Assistant
Assistant Director of PZB
3 Firefighters
Director of Public Safety
Police Officer
Office Assistant in Public Works
Equipment Operator
Beach Cleaner (contracted service)
ROW Inspector
Engineering Technical Support
Part time staff across Recreation -.67
The FTE reductions described above were offset slightly by an increase in the Marina FTE total of 0.26, an increase of 0.5 for a HR Specialist, and an increase of 0.75 for a Golf Course Maintenance Associate.
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Department/Fund | FY09 | FY10 | FY11 | FY12 | FY13 | FY14 | FY15 | FY16 | FY17 | FY18 | FY19 |
Town Manager | 6.00 | 6.00 | 5.00 | 5.10 | 5.10 | 5.10 | 5.10 | 5.00 | 8.00 | 8.00 | 7.00 |
Information Systems | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 6.00 | 8.00 | 8.00 | 8.00 | 8.00 | 8.00 |
Human Resources | 4.90 | 4.95 | 4.57 | 4.52 | 4.38 | 4.38 | 4.63 | 5.13 | 5.03 | 5.03 | 4.59 |
Finance | 17.95 | 17.45 | 17.45 | 17.95 | 18.14 | 18.14 | 18.64 | 18.56 | 15.56 | 15.56 | 14.74 |
Planning, Building & Zoning | 29.25 | 28.75 | 27.25 | 26.75 | 26.25 | 26.25 | 27.25 | 28.25 | 28.25 | 28.25 | 27.25 |
Fire-Rescue | 81.50 | 90.20 | 86.40 | 82.90 | 79.90 | 75.90 | 75.90 | 75.90 | 75.90 | 81.90 | 78.40 |
Police | 129.5 | 115.05 | 102.85 | 103.85 | 104.35 | 103.35 | 103.35 | 103.35 | 103.35 | 102.85 | 101.80 |
Public Works | 101.46 | 97.75 | 86.35 | 86.85 | 88.02 | 88.04 | 87.04 | 88.54 | 88.07 | 88.64 | 83.64 |
Recreation | 17.03 | 16.81 | 16.66 | 14.89 | 9.49 | 10.21 | 15.25 | 15.18 | 13.81 | 14.4 | 11.75 |
Town Docks | 3.63 | 3.63 | 2.63 | 3.77 | 2.63 | 2.63 | 2.85 | 3.17 | 3.17 | 3.13 | 4.19 |
Par 3 Golf Course | 9.07 | 8.59 | 8.19 | 7.05 | 6.45 | 5.71 | 7.94 | 9.20 | 8.32 | 7.70 | 9.19 |
Underground Utility Fund | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.25 | 1.00 |
Coastal Management Fund | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.00 | 1.00 | 1.50 | 1.75 | 1.00 |
Kruesler Park | 2.20 | 2.20 | 2.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Risk Fund | 1.50 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.16 | 1.16 | 1.66 | 1.16 |
Health Fund | 1.10 | 1.10 | 0.53 | 0.80 | 0.79 | 0.79 | 0.79 | 0.97 | 1.01 | 1.01 | .92 |
OPEB Trust | 0.50 | 0.50 | 0.45 | 0.72 | 0.73 | 0.73 | 0.73 | 0.90 | 0.95 | .95 | .98 |
Retirement Fund | 0.00 | 0.00 | 0.00 | 0.50 | 0.71 | 0.71 | 0.71 | 0.79 | 0.79 | .79 | .61 |
Total Authorized Positions | 410.39 | 399.98 | 367.33 | 362.65 | 353.94 | 348.94 | 360.18 | 365.09 | 362.87 | 370.87 | 356.22 |
Other Funds
Below are highlights from the budgets for other Town funds. Additional information can be found at the tabs in the back of the Budget Document behind the General Fund information. The Town’s other funds include: Special Revenue, Debt Service, Capital Improvement Funds, Enterprise Funds (Town Docks and Par 3 Golf Course), Internal Service Funds (Health, Risk, Equipment Replacement), and Trust Funds (Pension and OPEB Trust).
Special Revenue Fund (122) Townwide Underground Utility Project
The Townwide Underground Utility Project fund accounts for the project costs and associated assessments and borrowings for the project. During FY19, we expect to complete Phase 1 and begin construction of Phase 2 of the project. Engineering design is underway for Phases 3 and 4 of the project. We have added principal and interest costs for the debt service on the GO Bonds issued in September.
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Debt Service Funds (205, 206)
The Debt Service Funds provide for the payment of principal and interest on the Town’s outstanding bonds. During FY10, the Town authorized the issuance of $57,035,000 for a portion of the Town’s Accelerated Capital Improvement Program (ACIP) and refunding all of the Town’s existing debt. In addition, bonds totaling $14,770,000 were issued for the Worth Avenue Commercial District Project. On August 25, 2016, the Town issued bonds to refund the 2010A & 2010B bonds. This transaction produced gross savings of $8,900,539 over 23 years. The net present value savings was $6,895,965 or 13.35%.
In 2013, the Town issued $55,590,000 for the second phase of the ACIP, “bondable” coastal projects, and the Town’s portion of the Par 3 clubhouse project.
In 2018, the Town issued $56,040,000 in General Obligation Bond debt secured by the Town’s full faith and credit and by non ad valorem special assessments for the Townwide Underground Utility Project.
The Town’s outstanding Revenue and General Obligation debt as of September 30, 2018 is shown below:
Outstanding Year Principal Balance Issued September 30, 2018 Purpose | ||
2010A | $7,125,000 | Remaining Balance on First Phase of ACIP Debt |
2010B | $650,000 | Remaining Balance on Original Worth Ave Debt |
2016A | $39,320,000 | First Phase of the ACIP and Refund Outstanding Debt |
2016B | $10,255,000 | Worth Avenue Commercial District Project |
2013 | $51,735,000 | Second Phase of ACIP, Bondable Coastal, and Par 3 Clubhouse |
2018 | $56,040,000 | General Obligation Bonds for the Underground Project |
Total | $165,125,000 | |
As of September 30, 2018, the Town’s net bonded debt will amount to 18.2% of the legal limit of $905,914,254 (5% of preliminary FY19 taxable value of $18,118,285,079).
The 2016A and 2013 Series Revenue Bonds debt service is funded from non-ad valorem revenues. A portion of each ($199,338) is funded through the Recreation Enterprise Fund
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Executive Summary
for the Town’s portion of the Par 3 golf course and clubhouse renovation, and a portion is funded through the Coastal Management Fund ($542,606). The non-ad valorem revenue transfer from the General Fund for FY19 is $5,994,738.
The 2016B Series Revenue Bonds debt service appropriation of $708,762 is funded through non ad valorem assessments on the property owners within the Worth Avenue Assessment District.
In addition to the above Revenue Bonds, the Town issued Commercial Paper during FY18 for the Underground Utility Project. The total amount of authorized commercial paper was
$22,650,000. The commercial paper was paid in full with the proceeds from the General Obligation Bonds.
Capital Improvement Funds (307, 309, 311, 314)
For FY19, the following items totaling $6,037,500 are included in the Capital Improvement Fund (307):
Pavement Management - $1,000,000
Drainage Improvements - $1,280,000
Sanitary Sewage System Improvements - $1,650,000
Water main improvements (WPB) - $800,000 (Funded by West Palm Beach)
Landfill site maintenance - $27,500
Bulkheads/seawalls - $180,000
Facility improvements - $1,100,000
The transfer to the Capital Improvement Fund has increased by $211,976.
Bonds funds in the ACIP II fund are projected to be used to fund the remaining capital projects outlined in the ACIP II budget section of this document but we plan to reexamine all projects before finalizing spending plans.
Coastal Management
The Coastal Management Fund (309) is used in part to fund the construction costs of the coastal projects. The details of the FY19 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 transfer to the Coastal Management Fund decreased $61,176 to $7,349,124. Due to the recent grant award of $8,280,324 from the State of Florida, the annual contribution to the coastal fund can be reduced. We are recommending that we wait until FY20 to make a decision on the reduction once we have information on the Clark/Breakers/Mid-Town beach stabilization project costs.
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Executive Summary
Enterprise Funds (401, 402)
We have separated the Town Docks and Par 3 Golf Course into individual enterprise funds and moved the Recreation and Tennis activities that were a part of the Recreation Enterprise fund to the General Fund. This will allow for a clearer financial status of the operations of the Town Docks, Par 3 Golf Course, Recreation Center and Tennis programs.
Town Docks
Town Docks revenues are expected to increase in FY19. The fee increases adopted for FY19 should result in revenue growth of approximately 22.7%. Forecasts for FY19 anticipate that the Town Docks will realize a gross operating profit of $3,573,701, and a net profit of
$1,738,427 after depreciation capital, contingency and the transfer to the general fund.
We are annually accruing funds in the Dock Replacement Reserve, which, at the end of FY17 totaled $3,801,256. We expect the FY2018 ending balance to be approximately $4,255,000.
Par 3 Golf Course
Golf Course revenues are expected to increase during FY19. The fee increases adopted for FY19 should generate over $40,000 in additional revenue. The Par 3 Golf Course anticipates a gross profit of $544,039 in FY19 before depreciation, capital expenses, debt service, contingency and the transfer to the general fund. After these expenses the Par 3 Golf course will reflect a profit of $1,656.
Internal Service Funds (501, 502, 320)
The transfer to the Risk Fund (501) has increased by $69,584 (3.81%) from FY18 to FY19. The increase is related to anticipated increases in the fixed costs for liability and property insurance.
The Health Insurance Fund (502) experienced an expenditure budget decrease of 9.29% due to favorable claims experience and to fewer employees in the plan. The Town’s contribution decreased a total of $271,747 or 6.86% from FY18.
The Equipment Replacement Fund (320) contains the accumulated depreciation of all fixed assets over the established thresholds of $5,000 for capital equipment and $3,000 for computer equipment. A detailed listing of planned equipment purchases is located in the Internal Service Funds section of the Annual Budget Document.
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Executive Summary
Trust Funds (600 & 610)
Retirement (600)
The FY19 actuarially determined contribution to the DB plan originally totaled $9,631,447. The Town began contributing the entire contribution in October of each fiscal year beginning in FY17. This early contribution will create interest savings due to the earlier than expected payment timing, so the budgeted contribution is $9,302,382 (or $329,065 less). The actuary calculated the savings for FY19 and the amounts by employee group are shown below versus the FY18 contribution.
Town DB and DC Retirement Contributions
Town Retirement Contributions | FY2018 | FY2019 | Change | % Change |
General Employees DB | $2,997,898 | $2,937,426 | ($60,472) | -2.02% |
Lifeguards DB | 188,431 | 185,042 | ($3,389) | -1.80% |
Police DB | 2,870,523 | 2,835,728 | ($34,795) | -1.21% |
Fire-Rescue DB | 3,263,383 | 3,344,186 | $80,803 | 2.48% |
Total DB Contribution | $9,320,235 | $9,302,382 | ($17,853) | -0.19% |
DC Contributions | $630,774 | $601,882 | ($28,892) | -4.58% |
Total Town DB And DC Contribution | $9,951,009 | $9,904,264 | ($46,745) | -0.47% |
The historical 10 year trend in Town actuarially determined pension contributions is shown below.
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Executive Summary
The 10-year trend for employee contributions is shown below:
Based on recent pension changes, the Town no longer provides a DC plan for public safety employees. For General Employees and Lifeguards, the new plan was modified and now the Town contributes a mandatory match of 3% and an optional match of 2% to the Defined Contribution (DC) plan. Total employer contributions to the DC plan are shown in the chart below:
Employer Defined Contribution Funding
DC Contributions | FY2015 Actual | FY2016 Actual | FY2017 Actual | FY2018 Budget | FY2019 Budget |
General | $756,792 | $817,696 | $684,688 | $621,996 | $593,145 |
Lifeguards | 12,410 | 14,850 | 10,357 | 8,778 | 8,737 |
Police | 294,148 | 287,545 | 0 | 0 | 0 |
Fire-Rescue | 154,893 | 153,963 | 69,824 | 0 | 0 |
Total | $1,218,243 | $1,274,054 | $764,869 | $630,774 | $601,882 |
The Employer Defined Contribution trend since inception in 2012 is shown below.
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Executive Summary
Health Insurance (OPEB) Trust (610)
The actuarially determined transfer to the OPEB trust from the General Fund in the FY19 budget is $435,383. This amount is $524,617 (54.6%) less than FY18. The Town Council requested that the Investment Advisory Committee make a recommendation regarding the FY19 funding for the OPEB trust. The actuarial report showed a 113.2% funded ratio at the end of FY17 at an investment return assumption of 7%. The following options were reviewed by the committee:
7% | 6.5% | 6.25% | |
Actuarial Accrued Liability | $29,249,750 | $30,015,464 | $32,515,671 |
Funded Ratio | 113.2% | 105.1% | 101.1% |
Town Contribution | $216,729 | $435,383 | $546,800 |
The Investment Advisory Committee recommended a 6.5% return assumption to provide a cushion with excess reserves to help maintain funding if the investments fall short of the target or if retiree health claims are higher than anticipated. The Town’s balance in the OPEB trust fund continues to be well ahead of other government agencies across the country.
Worth Avenue Special Assessment District
The budget for the Worth Avenue Special Assessment District is included in the Capital Funds and the Debt Service section of the budget document. The budget includes funding for maintenance and debt service. These costs are fully offset by the assessments charged to property owners within the district.
Inventory of Assets
The estimated inventory of parts, supplies, fuel and materials on hand as of October 1, 2018 was $388,056 and the total fixed asset inventory (which includes machinery, equipment, and vehicles with a value of over $5,000 and computer equipment with a value over $2,500) was
$21,832,311.
Financial Policies
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). During FY18, the Town Council adopted new financial policies for the Town Docks and Par 3 Golf Course to replace the Recreation Enterprise Fund policies that were no longer applicable.
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Executive Summary
Final Thoughts
I wish to acknowledge the efforts of all of the Department Directors for their valuable input and the work of their respective staff. I also wish to acknowledge the work of Jane Le Clainche, Finance Director, Amy Wood, Assistant Finance Director, and Melissa Ladd, Budget Analyst and Jay Boodheshwar, Deputy Town Manager for their efforts throughout the budget process.
Respectfully Submitted,
Kirk Blouin Town Manager
cc: Jay Boodheshwar, Deputy Town Manager Department Directors
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Strategic Planning and Performance Measurement
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 FY19.
Strategic Planning
In 2001, the Town Council formed a Strategic Planning Board comprised of then Mayor Lesly Smith and four other Town residents. The board held a series of meetings and community forums to receive input from citizens, the business community, staff and others. The strategic plan was formally approved by the Town Council in 2003. The strategic plan is summarized below:
A Legacy Worth Keeping
Palm Beach is a fully developed community, world renowned for its extraordinary beauty, quality of life, and small-town character. Our permanent and seasonal residents love our barrier island community and are determined to preserve our legacy. We do not seek to change Palm Beach, but rather to protect our community’s assets, correct any deficiencies, and to manage inevitable change so as to maintain our tradition of excellence.
As we envision our future ten years from now, we see Palm Beach remaining true to the inspired legacy of our founders, a Mediterranean-style mecca of stunning architecture and natural beauty, acclaimed shopping, restaurants and hotels, a cosmopolitan culture, and an involved citizenry committed to civic and philanthropic causes and excellence in Town Government.
Quality and Responsive Town Government
Town government is supported by a respected Mayor and Town Council, a skilled and dedicated staff, and by the active volunteer participation of many citizens.
Palm Beach provides residents with the highest level of safety and security through its vigilance and commitment to high quality training and state-of-the-art equipment. The Town has maintained its fiscal strengths with resourceful budgeting and prudent management.
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In the future, we envision...
Continued high quality services and facilities provided in a responsive, resourceful manner. A structure of government guided by clear mandates and performance goals for Town administration and for appointed boards and commissions, continued technological innovation, and excellent internal and external communication.
Pro-active initiatives and continuous vigilance to anticipate and avert threats to public safety, enabling Palm Beachers to live secure in safe neighborhoods.
Solid fiscal strength and strong alliances with state and federal partners. Actions will be taken and communicated to residents to instill confidence that optimum services are provided for taxes paid.
Public Facilities and Infrastructure
While completely developed, the Town of Palm Beach recognizes a number of redevelopment challenges and functional deficiencies among its current capital facilities. Traffic has increased and parking is at a premium. Beach erosion has become severe, threatening oceanfront property and diminishing a key scenic and recreational asset. Drainage deficiencies and occasional water shortages continue to pose a threat.
In the future we envision...
Beaches fully restored and maintained for the protection of oceanfront property, enjoyment of residents, and scenic enhancement.
Modernized, reliable infrastructure systems, including improved facilities for water distribution and storm drainage. Capital projects will be completed expeditiously and with an effort to limit the disruption they inevitably will cause to adjacent property owners.
Convenient network of roads and parking, less hampered by congestion and sufficient to meet local needs without encouraging additional traffic or visitation.
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Character and Quality of Life
While Palm Beach is built out, growth continues in the form of redevelopment and changes in use raising questions and concerns about over-development, scale, and our historic legacy. The Town is proud of its lush landscaped setting, its historic architecture, and its array of shopping and other amenities, but concerns are expressed about expanded tourism, visitation and traffic, straining our limited service capacity. The Town recognizes that among our greatest resources are our people and their involvement in civic groups, charities, cultural activities, and faith- based organizations.
In the future we envision...
A community that has guarded against over-development, encouraging redevelopment consistent in scale with existing neighborhoods, reflective of our heritage.
A town with a rich menu of cultural choices, enabling Palm Beach to continue to combine the intimacy and convenience of small town life with the cultural sophistication and variety of a city.
Palm Beach will remain a friendly community which embraces its diversifying population, nurtures young families and children, and welcomes new residents and visitors. Palm Beachers will continue their heritage of support to worthy causes and their involvement in civic affairs creating new opportunities for all to participate fully in the life of the community.
Town Staff Vision
In 2005, Town staff developed and implemented an organizational vision and values statement. A Visioning Committee of 20 employees representing each department and every level of authority developed the draft vision and values statement that was reviewed by all Town employees. The final vision and values statement is shown on the following page:
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OUR VISION
The Town of Palm Beach delivers the highest quality service by continuously improving and always striving to be the standard by which others are measured.
Our Town Rich in history… Rich in service…
Always exceptional!
OUR VALUES
The employees of the Town of Palm Beach commit to and are guided by the following values:
Respect for everyone Highest ethical standards Cooperation and teamwork Commitment to quality Spirit of innovation
Open, timely communication Personal responsibility and accountability
This is a commitment by the employees of the Town of Palm Beach.
Our success as a team is dependent upon our actions being consistent with the vision & values we profess.
The Vision/Strategic Plan/Performance Measurement Process
The Townwide vision and strategic plan developed by the Strategic Planning Board and the organizational vision developed by Town staff complement each other. The Staff recognizes the Town’s rich history and commitment to excellence that has made the Town an exceptional place to live and work.
The strategic plan and organizational vision guide the decision making process as the elected officials and staff develop annual Townwide, department and program goals, and the annual budget. We then use performance measures to track our progress in achieving the goals that have been set.
The process is depicted in a flowchart on the following page and elements of the process are described in greater detail in this section. The department and program performance measurement methodology are described in greater detail in the department sections of this document.
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The Vision/Strategic Plan/Goals and Performance Measurement Process
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Townwide Budget Priority for FY2019
The Town Council’s annual budget priority for FY2019 is outlined below. This year the one priority was the major impetus for the development of the FY19 budget. The Town Council, working with the Retirement Board decided to contribute an additional $5,420,000 over the ADEC each year until the plan becomes fully funded. The Town Manager and staff worked diligently to find efficiencies and cuts throughout the budget to cover the additional funding.
In addition to the top priority, the Departments developed other major initiatives for the year. The Departmental goals will be reviewed on a continual basis throughout the fiscal year.
The following is a breakdown of the Town Council Priority and a listing of the departmental objectives that address the Council’s agenda. The table below shows the linkage between the Council’s priority and the Department objectives that will be implemented during the year or have already been implemented. A detailed listing of all departmental objectives and performance measurements can be found in the Department sections of this document.
Town Council Priority Conduct a comprehensive review of Town operations so that additional contributions to the Retirement Fund can be funded in the FY19 budget mostly through budget modifications rather than property tax increases or use of reserves. | |
Department | Department Goals |
Town Manager |
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Finance |
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IT |
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Fire-Rescue |
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Recreation |
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Police |
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HR |
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Strategic Planning and Performance Measurement FY2019
Department Performance Measures
The Town Departments have adopted goals and performance measures representing the most critical targets for their operations. The other department and program specific results are shown in the department section of the budget document.
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Introductory Information
Palm Beach is located on a barrier island east of West Palm Beach, Florida in Palm Beach County. The land area of the Town is approximately 3.77 square miles with 12.1 miles of coastline on the Atlantic Ocean. The Town is also bound on the west by 15.9 miles of Intracoastal frontage (Lake Worth), on the north by the Palm Beach Inlet, and on the south by the Town of South Palm Beach.
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DEMOGRAPHICS
DEMOGRAPHICS
Palm Beach at a Glance
Date of Incorporation April 17, 1911
Form of Government Council/Manager
Land Area 3.77 Square Miles
FY2019 General Fund Budget $82.5 million
Taxable Property Valuation $18.2 Billion
Town of Palm Beach Demographics | |||
Population 2017 (Univ of Florida Est) 2016 (Univ of Florida Est) 2015 (Univ of Florida Est) 2014 (Univ of Florida Est) 2010 (Census) 2000 1990 1980 1980 1960 1950 Resident Statistics Median Age Avg. Household Size Median Home Value Racial Composition Caucasian & Other Races Hispanic/Latino African American Asian Bond Ratings 2013/2016 Revenue Bond Moody’s Aa1 S&P AAA | 8,291 8,040 8,040 8,170 8,161 9,676 9,814 9,432 9,086 6,055 3,886 67.9 yrs. 1.78 $955,600 94.4% 3.1% 1.2% 1.3% Issuer’s Rating Aaa AAA | Service Statistics Police Stations Fire-Rescue Stations Public Elementary School Public Library Recreation Facilities Tennis Courts Par 3 Golf Course Marina (88 slips) Community Building Playfields Bicycle Paths Picnic Tables Outdoors Grills Recreation Areas Phipps Ocean Park Special Use Parks Public Park on Beach Municipal Beach Peruvian/So. County Road Southern Blvd. Causeway Nature Islands Registered Voters | 1 3 1 1 14 1 1 1 5 9.3 miles 77 28 24 acres 3.0 acres 5.60 acres .24 acres 9.60 acres 39 acres 7,938 |
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Taxable Value and Millage Rate
The Town Council approved a millage rate of 3.1350 for FY19, a decrease from the FY18 millage rate of 3.2037. Taxable value increased 7.75% to $18,202,287,698 for FY19. Ad Valorem revenue of $54,210,963 is included in the FY19 budget. Town adopted final millage rate is above rollback but below maximum millage rates. The increase in tax revenue from the rollback rate is $1,637,158. The chart below identifies the millage rate options available to the Town and the Town’s adopted final millage rate.
Millage Rate | Tax Revenue | |
Rollback Millage Rate | 2.9857 | $51,629,242 |
Majority Vote Maximum Millage Rate | 3.0309 | $52,410,848 |
2/3 Vote Maximum Millage Rate | 3.3340 | $57,652,106 |
Town Adopted Final Millage Rate | 3.1350 | $54,210,963 |
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 1.0147%. The 2/3 vote maximum rate is 110% of the majority maximum rate.
The Town’s taxable value declined by 13% from FY10 through FY12, and since then values have increased to all-time highs. The FY15 millage rate increased to supplement the budget for funding of the coastal protection program. Since that time, the millage rate had declined due to increasing values. The tax revenue trend is shown on the chart on the following page.
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The Town millage rate represents 19.24% of the total tax bill. The table below illustrates the difference between the FY18 vs. FY19 total tax bill by taxing district for a Palm Beach property owner with a taxable value of $1 million.
Impact on owner of $1 million property
Taxing Authority | FY18 Millage Rate | FY19 Millage Rate | FY19 Tax Change Per $1 Million Value $1 million Value % Change | % of Total Tax Bill | ||
Palm Beach | 3.2037 | 3.1350 | $3,135 | -$68.70 | -2.14% | 19.24% |
Palm Beach County | 4.9023 | 4.8980 | $4,898 | -$4.30 | -0.09% | 30.05% |
Palm Beach County School District | 6.7690 | 6.5720 | $6,572 | -$197.00 | -2.91% | 40.33% |
South Florida Water Mgmt | 0.2659 | 0.2519 | $252 | -$14.00 | -5.27% | 1.55% |
Children Services | 0.6590 | 0.6403 | $640 | -$18.70 | -2.84% | 3.93% |
Florida Inland Navigation | 0.0320 | 0.0320 | $32 | $0.00 | 0.00% | 0.20% |
Health Care District | 0.7808 | 0.7261 | $726 | -$54.70 | -7.01% | 4.46% |
Everglades Construction | 0.0441 | 0.0417 | $42 | -$2.40 | -5.44% | 0.26% |
Grand Total | 16.6568 | 16.2970 | $16,297 | -$359.80 | -2.16% | 100.00% |
The chart below shows the 10-year trend in millage rates for all taxing authorities.
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The Town’s total millage rate is the second lowest in Palm Beach County as shown below.
Property Breakdown by Number of Parcels
The Town has a total of 9,432 total parcels. Residential units total 8,877 or 94% of all parcels. Condominiums and Cooperatives represent the greatest percentage of total parcels in the Town at 67% or 6,362 parcels. Single family residential parcels are the second largest group at 2,294 parcels or 24% of the total. Commercial and industrial parcels total 400 and the balance is made up of multi-family, government, institutional and miscellaneous parcels. There are 3,299 Properties with a Homestead exemption representing 35% of the total parcels in the Town.
Property Breakdown by Taxable Value
The taxable value of parcels in the Town totals $18.2 billion. Residential parcels represent 91% of the total value of parcels and single family residential represents 63% of the total value.
Commercial and industrial properties represent 8% of the total value of parcels.
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Historical Building Permit Detail
During FY18, permit applications increased over FY17. Total permit valuation for FY18 was $347,629,618 compared to $238,640,151 in FY17. FY18 was the highest permit valuation ever recorded. The prior record was set in FY15 at $326,626,671. We have estimated higher than average permit revenues for in FY19, but do not expect the same revenues levels as experienced in FY18.
The monthly trend for permit activity and permit valuation for the past five years is shown on the charts below.
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According to early settler accounts, Palm Beach received its name from a shipwreck named the “Providencia”. The ship washed ashore in January of 1878 with a load of coconuts bound from Havana to Barcelona. Early settlers lost no time claiming salvage and planting the coconuts which were not native to South Florida in an effort to launch tropical South Florida on a commercial coconut industry.
In 1893 millionaire industrialist Henry M. Flagler and his second wife honeymooned in St. Augustine. Impressed with the beauty and history of the area, he envisioned an “American Riviera”. Flagler left home at age 14 with an eighth-grade education. Later, with John D. Rockefeller and Samuel Adams, he founded Standard Oil, and the rest is history. Having invested large sums in several
hotels in the St. Augustine area, Flagler extended his holdings southward. He bought and improved existing railways anticipating the tremendous potential for South Florida. His railway was named the Florida East Coast Railway.
Flagler’s agents soon were buying acres of land on the island of Palm Beach. Many early homesteaders found themselves very wealthy, as orders had been given to buy “at any price”.
Ground was broken May 1, 1893,
and on February 11, 1894, the Royal Poinciana Hotel, the largest wood structure in the world, opened in Palm Beach and welcomed 17 guests. A month after the opening, the first train pulled from the station on Loftin Street (later used as an office and warehouse by the Town of Palm Beach) in West Palm Beach on the newly built bridge across Lake Worth to deliver vacationing residents, some in their own private railway cars, to the new hotel. Henry Flagler built his own
house in 1902, Whitehall, as a wedding present for his third wife, Mary Lily Kenan. Whitehall is now the Henry Morrison Flagler Museum and is open to the public.
Flagler continued to develop the Royal Poinciana Hotel property and built a second hotel, the Palm Beach Inn, on the beachfront portion of the Royal Poinciana’s property. When the Palm Beach Inn burned in 1903 the first Breakers Hotel was built. Destroyed by a fire in 1925, it was rebuilt as the splendid hotel it is today. The Breakers is listed in the National Register of Historic Places.
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On April 17, 1911, a meeting of the registered and qualified voters of Palm Beach, Florida, was held at the Palm Beach Hotel for the purpose of incorporating the Town of Palm Beach. Thirty-four qualified voters voted to incorporate the Town.
In 1918, before the end of World War I, Addison Mizner, an established New York architect who was born in California and studied in Spain, accepted an invitation from Paris Singer to recuperate from a leg injury in Palm Beach. As Mizner’s health improved his boredom turned into creativity, and he transformed Singer’s bungalow into a Chinese villa. The conversion was a success, but Singer looked forward to a larger project. Having established two hospitals in France, Paris Singer decided to build a convalescent home in Palm Beach for service men returning from the war. The buildings were completed, but before the opening of the club house in January 1919, the “Touchstone Convalescent Club” had been transformed into the exclusive Everglades Club on Worth Avenue where it still is today.
Mizner’s era had begun and was to continue along the southeast Florida coast through the 1920's.
The Town of Palm Beach soon began long range plans to develop and protect this island paradise, and the beauty which Town residents now enjoy is due to the efforts of several generations of planning activity. In 1929, the Garden Club of Palm Beach joined the Town and formally sponsored the preparation of a Town Plan. The overall goal of the 1929 Plan stated the following:
“One attractive and well managed public bath and beach, the concentration of general traffic upon a limited number of streets, beautification without especial reference to main arteries of travel, and a system of leisurely and convenient byways free from automobiles, punctuated with gardens: this is a plan which will localize recreation seeking crowds, discourage trespassing, and provide safety and quiet for residents of Palm Beach.”
Also included in the plan was the following statement:
“There are many communities which can be said to be beautiful. The places in which charm is the additional attribute are very few. The element of charm is the thing which lifts a community out of the ordinary and makes it distinctive. The attribute of charm may be produced by an intelligent development of physical advantages in an unusual way.”
Today’s Comprehensive Plan in Palm Beach builds on the early foundation as an effort to preserve the quality and beauty of Palm Beach.
The Town of Palm Beach has 7,864 registered voters in 2018 with approximately 8,291 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.
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The Town of Palm Beach financial policies, compiled below, set forth the basic framework for the overall financial management of the Town. These policies assist the Town Council’s decision-making process and provide guidelines for evaluating both current activities and proposals for future programs. Copies of Town Council adopted policies are located in the appendix section of this document.
General Policies
Annually prepare a budget, submit it to the Town Council for approval and publicly issue a budget document.
Identify costs and funding sources before recommending approval of capital and operating budgets.
Provide for sound financial planning, the best possible bond rating, funding of depreciation and adequate working capital in all funds.
Take measures to protect against catastrophic losses through a combination of insurance, funded self insurance, and cash reserves.
Follow the Town of Palm Beach Charter when preparing the Town’s budget.
Estimate and review the long-term costs associated with proposed new programs or services.
Assign all program costs as accurately as practical (including interfund transfers when necessary) utilizing intergovernmental service funds where indicated.
Annually review all existing programs to determine whether a recommendation to the Town Council to maintain, decrease, or increase service levels is appropriate.
Review annually all administrative policies governing accounting procedures, billing, purchasing, asset use and control, and risk management.
Operating Budget Policies
Pay for all current year operating expenses with current year revenues and/or available fund balances.
Provide for adequate funding of all pension plans, as determined by the Town’s actuary.
Make all purchases in an impartial, economical, efficient, and competitive manner, in accordance with all Federal, State and municipal laws and coordinated through the Purchasing Division.
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
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will originate from the applicable department director and the Finance Director and shall be subject to the approval of the Town Manager.
The Town Manager may authorize transfers between departments if the action is deemed necessary to meet the obligations of the Town.
Issue a Comprehensive Annual Budget Document after adoption.
Capital Budget Policies
Evaluate the relative merit of each capital project according to the Town Council’s goals and priorities.
Rely on internally generated funds and/or grants to finance its capital needs. Debt will be issued for a capital project only in the case of an emergency, or when inclusion of a project in the Town’s pay-as-you-go Capital program will preclude the construction of smaller necessary capital improvements.
Thoroughly evaluate and update the Capital Improvement Program on an annual basis providing detailed information regarding operational impacts.
Revenue Management Policies
Levy taxes to provide the desired level of service.
Annually review all revenue schedules, including taxes, rates, licenses, user fees, and other charges, to insure compliance with Town Council’s approved policies.
Maintain a diversified revenue base to help mitigate the effects of short-term fluctuations in any one revenue source.
Conservatively estimate annual revenues utilizing established industry standards along with historical trend information.
Annually review user fees for the Recreation Programs and the Marina and Golf Course Enterprise Funds and set at a level that is competitive in the market and provides value for Town residents.
Review new sources of revenue to fund operating and capital costs consistent with the Town Councils’ goals and priorities.
Investment Management Policies
Prepare a cash flow analysis of all funds on a regular basis. Disbursement, collection and deposit of all funds will be scheduled to insure cash availability.
Deposit funds only in financial institutions which are insured by the Federal Deposit Insurance Corporation or are approved for full collateralization by the public deposit protection act or other state statutes.
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Pool cash from all legally permitted funds for investment purposes.
Maximize the investment rate of return. Adhere to lawful investment options. Safety of the principal shall be the dominant requirement, followed by sufficient liquidity to meet operating requirements, and then yield.
Insure timely deposit of all collected revenues.
Debt Management Policies
Periodically approve the issuance of Debt Obligations on behalf of the Town to finance the construction or acquisition of infrastructure and other assets for the purpose of meeting its governmental obligations to its residents.
Approve the issuance of Debt Obligations to refund outstanding debt when market conditions indicate or for management considerations.
Assure that such Debt Obligations are issued and administered in such a manner as to ensure and sustain the long-term financial integrity of the Town, to achieve the highest possible credit rating and to preserve and enhance the quality of life, safety and welfare of its citizens.
Assure that such Debt Obligations shall not be issued or debt proceeds used to finance current operations of the Town except as provided herein.
Issue Debt Obligations if necessary to minimize the impact of construction or acquisition of infrastructure and other assets on the budget of the Town.
Consider long-term financing for the acquisition, maintenance, replacement, or expansion of physical assets (including land) only if they have an economic/useful life of at least five years.
Not issue debt for periods exceeding the useful life or average useful lives of the project or projects to be financed.
Normally rely on internally generated funds and/or grants to finance its capital needs. Debt will be issued for a capital project only in the case of an emergency, or when inclusion of a project in the Town’s pay-as-you-go capital program will preclude the construction of smaller necessary capital improvements.
Keep outstanding debt within the limits prescribed by Section 7.01 of the Town Charter.
Accounting, Auditing and Reporting Policies
Establish and maintain a high degree of accounting competency. Financial accounting and reporting will be done in accordance with methods prescribed by the Governmental Accounting Standards Board and the Government Finance Officers Association, or their equivalents.
Present monthly and annual reports to the Town Council summarizing financial activity.
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Maintain financial systems to monitor expenditures, revenues and performance of all municipal programs on an ongoing basis.
Provide full disclosure in annual financial statements and bond representations.
Use an independent certified public accounting firm to perform an annual audit.
Publicly issue a Comprehensive Annual Financial Report.
Comply with all required reporting requirements related to bond issuance terms.
Reserve Policies
Maintain a contingency reserve in the General Fund equal to 1% of the proposed General Fund budget to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.
Maintain a contingency reserve in the Capital Fund equal to 10% of the proposed Capital Fund budget to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.
Maintain an assigned fund balance in the General Fund equal to a minimum of 25% of current year General Fund budgeted expenditures.
Maintain a contingency reserve for the Equipment Replacement Fund of $500,000 to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.
Maintain a contingency reserve in the Enterprise Funds equal to 5% of the proposed Town Docks and Golf Course Enterprise Fund’s operating expense budget to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.
Maintain a contingency reserve in the Self-Insurance Risk Fund of $500,000 to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.
Maintain a contingency reserve in the Self-Insurance Health Fund of $500,000 to address unanticipated expenditures and/or to meet unexpected increases in health insurance costs and claims exposure.
Establish a reserve to designate fund balance in the amount equal to the Town’s unpaid obligations, unfinished projects and prepaid expenses that carry over from one fiscal year into the next.
Maintain minimum unrestricted net position levels equal to 25% of the proposed budgeted revenues in the Town Dock Enterprise Fund.
Maintain a minimum reserve of $2,500,000 for the Risk Fund designated as a reserve for catastrophic exposures/emergencies.
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Maintain a reserve for funding the replacement costs of General Fund existing equipment, vehicles, and computers when they reach the end of their useful lives. The reserve will be maintained at a rate of 100% of accumulated depreciation (calculated at replacement cost) of the existing equipment.
Maintain a reserve for funding the replacement costs of Golf Course Enterprise Fund existing equipment, vehicles, and computers when they reach the end of their useful lives. The reserve will be maintained at a rate of 100% of accumulated depreciation (calculated at replacement cost) of the existing equipment.
Maintain a reserve for funding a dock repair and replacement fund. The reserve will be maintained at a rate of 100% of accumulated depreciation based on the estimated replacement cost.
Maintain a repair and replacement reserve for funding the maintenance and improvement projects for the Golf Course.
Maintain a commitment of fund balance in the General Fund for payment of the liability related to compensated absences. This commitment will be funded at a rate of 100% of the fiscal year end accrued balance.
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The accounting policies and reporting practices of the Town conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of significant policies and practices.
Financial Reporting Entity
For financial reporting purposes, management has defined the reporting entity in accordance with criteria set forth in generally accepted accounting principles. The basic criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and/or its citizens, or whether the activity is conducted within the geographic boundaries of the government and is generally available to its citizens. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the Town's reporting entity.
Included within the reporting entity:
The Town of Palm Beach Employees' Retirement System
The Town and the Systems’ participants are obligated to fund the costs based upon actuarial valuations. The Employee’s Retirement Board recommends and the Town Council is authorized to establish benefit levels and to approve the actuarial assumptions used in the determination of contribution levels.
Excluded from the reporting entity:
East Central Regional Wastewater Treatment Facility ("Facility")
The Town participates in an interlocal agreement with Palm Beach County and the Cities of West Palm Beach, Riviera Beach and Lake Worth to provide wastewater treatment. The facility is governed by a Board of Directors comprised of one member from each participating entity. The Board of Directors has the authority to accept and disburse funds, approve an annual budget, transact business, enter into contracts and decide all other matters related to the Facility. The Town reimburses the Facility based upon usage and also provides funds for renewal and replacement costs. The Town does not exercise significant oversight responsibility nor can the Town significantly influence the Facility's operations and, therefore, the Facility has not been included as part of the reporting entity.
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Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.
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.
Property taxes, utility and franchise taxes, intergovernmental revenues and charges for services are susceptible to accrual when collected in the current year or within sixty days subsequent to September 30th, provided that amounts received pertained to billings through the fiscal year just ended. Further, property taxes are recognized as revenue in the fiscal year for which they are levied. Investment earnings are recorded as earned since they are measurable and available.
Permits, fines, forfeitures and contributions are not susceptible to accrual because, generally, they are not measurable until received in cash. Revenues collected in advance of the year to which they apply are recorded as deferred revenues.
Expenditures under the modified accrual basis of accounting are generally recognized when the related fund liability is incurred and expected to be liquidated with available resources. Exceptions to this general rule include principal and interest on general long-term debt which are recognized when due.
All Proprietary Fund types and the Pension and Nonexpendable Trust Funds are accounted for using the accrual basis of accounting. Revenue is recognized when earned, and expenses are recognized when they are incurred.
The Agency Funds are custodial in nature and do not involve measurement of results of operations. They are accounted for under the modified accrual basis of accounting. Assets and liabilities are recognized on the modified accrual basis.
Budget Basis
The budgets of general government type funds are prepared on a modified accrual basis. Briefly, this means that obligations of the Town are budgeted as expenses, but revenues are recognized only when they are actually received. Unencumbered appropriations lapse at fiscal year end.
The enterprise funds, on the other hand, are budgeted on a full accrual basis. Not only are expenditures recognized when a commitment is made but revenues are also recognized when they are obligated to the town.
The Comprehensive Annual Financial Report (CAFR) shows the status of the Town’s finances on the basis of “generally accepted accounting principles” (GAAP) and fund expenditures/revenues on both a GAAP basis and budget basis for comparison purposes.
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Budgets and Budgetary Requirements
The Town follows these procedures in establishing the budgetary data reflected in the financial statements:
Under the Laws of the State of Florida and the Town Code, prior to July 31, the Town Manager submits to the Mayor and Town Council a proposed Annual Budget and Financial Plan for the fiscal year, commencing the following October 1st. The Annual Budget and Financial Plan is prepared by fund, function and activity and includes proposed expenditures and the means of financing them.
Two Public hearings are conducted to obtain taxpayer comments.
Prior to October 1st, the budget is legally enacted by the Town Council through passage of a resolution.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the General Fund and Capital Projects Funds. On a Non-GAAP budgetary basis, encumbrances are recorded as expenditures of the current year. On a GAAP basis, encumbrances at year-end are reported as reservations of fund balance for subsequent-year expenditures.
Budgets are adopted each fiscal year for the General, Debt Service, Capital Projects, Enterprise, Internal Service, and Trust Funds. Budgets are adopted on a basis consistent with generally accepted accounting principles except that budgetary comparisons for the General Fund and Capital Projects include encumbrances as expenditures.
All annual unencumbered appropriations lapse at fiscal year end.
Changes or amendments to the budgeted amounts at the fund level must be approved by Ordinance by the Town Council; however, changes within a function or activity may be approved at the administrative level.
Truth in Millage (Trim)
The budget and property tax rate adoption process is governed by the State Statute known as TRIM (truth in millage). In Florida, properties are assessed by the County Property Appraiser and property taxes are collected by the County Tax Collector. Property owners are eligible to receive a homestead exemption of $50,000 on their principal place of residence. All property is assessed at 85% of market value.
By State Law, the Town is required to hold two public hearings for adoption of a property tax rate and budget. The first public hearing is advertised by the Property Appraiser's mailing to each property owner a TRIM notice. In addition to notification of this first public hearing the TRIM notice contains the following information:
The new assessed value and the assessed value for the prior year and any exemptions on the property;
The prior year property taxes;
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The tax bill if the rolled-back rate is levied for the new year (the rolled-back rate is that property tax rate which would derive the same amount of revenue based on the new assessed values as was raised in the prior year at the old assessed values); and
The property tax bill if the proposed budget is adopted.
The second public hearing is advertised by means of a newspaper advertisement which must be published not more than 5 days but not less than 2 days prior to the second public hearing.
Accompanying this advertisement is a summary of the revenues and expenditures contained within the budget tentatively approved at the first public hearing.
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Flow Chart of Budget Process FY2019
Flow Chart of Budget Process
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FY2019 Budget Calendar
Task Date Task Date
Finance to distribute FY19 Budget instructions
03/05/2018 | Town Manager’s Review of Town Manager, Risk Insurance, and Finance and ERF Budgets | 05/30/2018 |
Finance to distribute FY19 Budget instructions
03/05/2018 | Town Manager’s Review of Town Manager, Risk Insurance, and Finance and ERF Budgets | 05/30/2018 |
Town Council Meeting – Adoption of the Town Manager’s Goals for FY19
TBD | Property Appraiser Issues Preliminary Property Values | 06/1/2018 |
Town Council Meeting – Adoption of the Town Manager’s Goals for FY19
TBD | Property Appraiser Issues Preliminary Property Values | 06/1/2018 |
Submit initial CIP Request forms to Public Works
03/16/2018 | Final Budget Document Pages Returned to Finance | 06/11/2018 |
Submit initial CIP Request forms to Public Works
03/16/2018 | Final Budget Document Pages Returned to Finance | 06/11/2018 |
Town Council Meeting – Discussion of FY19 Budget Plan and LTFP
04/10/2018 | Town Manager’s Additional Review of Department Budgets (As Needed) - Town Manager review of Revenue Estimates with Finance Director | June 2018 |
Town Council Meeting – Discussion of FY19 Budget Plan and LTFP
04/10/2018 | Town Manager’s Additional Review of Department Budgets (As Needed) - Town Manager review of Revenue Estimates with Finance Director | June 2018 |
CIP Request forms and Budget Information submitted to Finance
04/16/2018 | Notice from Property Appraiser of Preliminary Certification of Taxable Value | 06/29/2018 |
CIP Request forms and Budget Information submitted to Finance
04/16/2018 | Notice from Property Appraiser of Preliminary Certification of Taxable Value | 06/29/2018 |
Town Manager’s Review of IT Budget
04/19/2018 | Distribution of Proposed FY19 Budget Document | Week of July 2 |
Town Manager’s Review of IT Budget
04/19/2018 | Distribution of Proposed FY19 Budget Document | Week of July 2 |
Town Manager’s Review of Fire-Rescue Budget and Police Budgets
04/20/2018 | Town Council Meeting to Consider Proposed FY19 Budget and Initial Resolutions(s) Adopting Special Non-Ad Valorem Assessments | 07/09/2018 |
Town Manager’s Review of Fire-Rescue Budget and Police Budgets
04/20/2018 | Town Council Meeting to Consider Proposed FY19 Budget and Initial Resolutions(s) Adopting Special Non-Ad Valorem Assessments | 07/09/2018 |
Town Manager’s Review of Recreation Enterprise Fund Budget
04/25/2018
Notice of Proposed Property Taxes is mailed from Palm Beach Property Appraiser
Week of August 13
Town Manager’s Review of Recreation Enterprise Fund Budget
04/25/2018
Notice of Proposed Property Taxes is mailed from Palm Beach Property Appraiser
Week of August 13
Town Manager’s Review of Planning, Zoning and Building Budget
05/18/2018 | Town Council Meeting – First Public Hearing to Approve Tentative Budget and Proposed Tax Rate for FY18 and Final Resolution(s) Adopting Special Non-Ad Valorem Assessments | 09/13/2018 5:01PM |
Town Manager’s Review of Planning, Zoning and Building Budget
05/18/2018 | Town Council Meeting – First Public Hearing to Approve Tentative Budget and Proposed Tax Rate for FY18 and Final Resolution(s) Adopting Special Non-Ad Valorem Assessments | 09/13/2018 5:01PM |
Town Manager’s Review of Public Works, Capital, and Coastal Budgets
05/22/2018GF
5/23/18-CIP/
Coastal
Town Council Meeting – Second Public Hearing to Adopt FY19 Budget and Tax Rate
09/19/2018
5:01PM
Town Manager’s Review of Public Works, Capital, and Coastal Budgets
05/22/2018GF
5/23/18-CIP/
Coastal
Town Council Meeting – Second Public Hearing to Adopt FY19 Budget and Tax Rate
09/19/2018
5:01PM
Town Manager’s Review of Human Resources Budget (Health and OPEB)
05/24/2018 | Resolution Adopting Final Millage Rate is Forwarded to Property Appraiser and Tax Collector and Certificate of Compliance sent to Department of Revenue | 10/01/2018 |
Town Manager’s Review of Human Resources Budget (Health and OPEB)
05/24/2018 | Resolution Adopting Final Millage Rate is Forwarded to Property Appraiser and Tax Collector and Certificate of Compliance sent to Department of Revenue | 10/01/2018 |
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Description of Funds and Fund Types
For accounting purposes a state or local government is not treated as a single, integral entity. Rather, a government is viewed instead as a collection of smaller, separate entities known as “funds”. The Governmental Accounting Standards Board’s (GASB) Codification of Governmental Accounting and Financial Reporting Standards (Codification), Section 1300, defines a fund as:
A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
All of the funds used by a government must be classified into one of seven “fund types.” Four of these fund types are used to account for a state or local government’s “governmental-type” activities and are known as “governmental funds”. Two of these fund types are used to account for a government’s “business-type” activities and are known as “proprietary funds”. Finally, the seventh fund type is reserved for a government’s “fiduciary activities”.
Governmental Funds
Four fund types are used to account for governmental-type activities. These are the general fund, special revenue funds, debt service funds, and capital projects funds.
General Fund (Major)
The General Fund is used to account for most of the day-to-day operations of the Town, which are financed from property taxes, fees, licenses, permits, fines and forfeitures, intergovernmental and other general revenue. There can only be one general fund. Activities financed by the General Fund include the following:
General Government
Includes expenditures for Compensated Absences and other Town-wide items.
Legislative
Includes expenditures for the Mayor and Town Council.
Town Manager
The budget of the Town Manager includes expenditures for administrative expenses relating to the Town Manager’s Office, Advice and Litigation expenses for the Town Attorney and outside counsel, Information Technology and the Town Clerk’s Office.
In FY17, the Town Clerk’s Office became a division of the Town Manager’s Office. The Town Clerk’s Office is responsible for the records of the Town as well as conducting elections held within the Town. The Department also processes permits for charitable solicitations, special events, commercial motion picture-making, going-out-of-business sales, and door-to-door solicitations.
Human Resources
The Human Resources Department is responsible for the recruitment, screening, and selection of employees to serve the Town. The Department is also responsible for employee benefits administration and compensation analysis. The Town’s Occupational Health Clinic is operated under this Department.
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Finance
The Finance Department is responsible for the administration, development and monitoring of the operating and capital budgets, preparation of the comprehensive financial reports, investments, debt management, cash management, and the maintenance of accurate financial reporting systems to meet all of the Town needs. The Department also is responsible for the operation and management of the purchasing, payroll and accounts payable functions.
Planning, Zoning and Building
The Planning, Zoning and Building Department is responsible for zoning changes and the issuance of permits for building, mechanical, plumbing, electrical, gas, energy, and coastal construction. The Department also assists residents, businesses, and the construction industry in code compliance. The Department strives to preserve the aesthetic, historical, and economic values of Palm Beach.
Fire-Rescue
The Fire-Rescue Department provides fire suppression, fire prevention education, rescue and emergency medical care and ocean rescue functions to the citizens and visitors to the Town. The Department conducts education programs on injury, heart attack and stroke prevention.
Police
The Police Department is responsible for the prevention of crime, preservation of peace, enforcement of laws and ordinances. This is accomplished through the patrol services, organized crime, vice and narcotics (OCVAN), crime scene/evidence, parking control enforcement and communications.
Public Works
The Public Works Department is responsible for the repair, maintenance, and cleaning of streets within the Town, the maintenance of storm sewers and sanitary sewers, the collection and disposal of residential and commercial garbage and yard trash, beach cleaning, the maintenance of the Town parks and buildings, coastal management, and providing the general engineering services for the Town.
Other
Under this classification are expenditures relating to the Four Arts Library and contingent appropriations.
Transfers to other Funds
This classification includes transfers to the capital, risk insurance, OPEB Trust, debt service funds and the extraordinary retirement contribution.
Special Revenue Funds
Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources which, by law, are designated to finance particular functions or activities of government and which therefore cannot be diverted to other uses. The Town has the following special revenue funds for which an annual budget is not adopted:
(101) State Forfeiture Fund (Nonmajor) - Accounts for State confiscated property through the Police Department per Florida State Statutes Section 932.
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(102) Federal Forfeiture Fund (Nonmajor) - Accounts for federally confiscated property through the Police Department. An annual report is submitted to the United States Department of Justice by November 30th of each year.
(103) Donations Fund (Nonmajor) - The Town of Palm Beach receives substantial donations each year from its residents. Most donations are earmarked for specific departments and/or purposes.
(110) Grant Fund (Nonmajor) – Accounts for grants received by the Town.
(120) Underground Utility Assessment Fund (Nonmajor) – Accounts for assessment projects relating to undergrounding utilities in various assessment areas in the Town.
(121) Special Assessment Maintenance Fund (Nonmajor) – Accounts for the non- capitalized expenses related to the assessment districts.
The Town has the following special revenue fund for which an annual budget is adopted:
(122) Town-wide Undergrounding of Utilities Project Fund (Major) – Accounts for undergrounding utilities town-wide for all areas not previously completed.
Debt Service Funds (Nonmajor)
The Debt Service Funds are used to account for the payment of interest and principal on general and special obligation debts other than those payable from special assessments and debt issued for and serviced by a governmental enterprise. The sources of revenues in these funds are transfer of non-ad valorem revenue from the General Fund and transfers of assessment revenue from the Worth Avenue Assessment Area Improvement Fund.
(205) Revenue Bond Series 2010A, 2013, 2016A and General Obligation Bond Series 2018 – This fund accounts for the debt service for the accelerated capital improvement program and the Town-wide Underground Utility Project.
(206) Revenue Bond Series 2010B and 2016B – This fund accounts for the debt service for the Worth Avenue Special Assessment District Construction Project.
Capital Projects Funds
The Capital Projects Funds account for all resources used for the acquisition and/or construction of capital infrastructure by the Town except those financed by Enterprise and Internal Service Funds. The sources of revenue in these funds are revenue bonds, transfers from other funds and grants.
(307) Capital Improvement Fund (Nonmajor) - This fund accounts for various construction projects undertaken by the Town. Any unexpended amounts at fiscal year- end, are rolled over to the new fiscal year. A five year Capital plan is presented during the budget process, of which only the first year is adopted by the Town Council. This fund is financed on a pay-as-you go basis from the General Fund.
(309) Comprehensive Coastal Management Plan (CCMP) Construction Fund (Major) - This fund was created during Fiscal Year 2000 to account for the Beach Restoration Project construction costs financed with proceeds from the 2000 Revenue Bond.
(311) Worth Avenue Assessment Area Improvement Fund (Nonmajor) - This fund was created during Fiscal Year 2010 to account for pre-construction and ongoing maintenance costs for Worth Avenue Improvements.
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(314) 2013 Accelerated Capital Fund (Major) – This fund was established with the proceeds from the 2013 Bond Issue for the second phase of the Accelerated Capital Improvement Program.
Proprietary Funds
Two fund types are used to account for a government’s business-type activities (activities that receive a significant portion of their funding through user fees). These are the enterprise funds and the internal service funds.
Enterprise Funds
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.
(401) Marina Enterprise Fund - This fund was created in FY2019 after the Recreation Enterprise Fund was dissolved and accounts for the Marina services at the Town Docks. The fund also includes capital projects and for the enterprise fund.
(402) Par 3 Enterprise Fund – This fund was created in FY2019 after the Recreation Enterprise Fund was dissolved and accounts for the revenues and expenses of the Par 3 Golf Course. The fund also includes capital projects and equipment replacement reserves for the enterprise fund.
Internal Service Funds
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of a government to other department or agencies on a cost reimbursement basis. Accounting for Internal Service Funds as a proprietary fund type is designed to accumulate the total cost (including depreciation) of providing a particular service. Costs for services are reimbursed by the departments or agencies to which the services are provided.
(501) Risk Management Self Insurance Fund - This fund was established to account for the Town’s Property, Liability and Worker’s Compensation Insurance costs. Monthly funding transfers are made from the General Fund to the Risk Fund.
(502) Health Insurance Self Insurance Fund - This fund was established to account for the Town’s health insurance costs which include medical, dental, life, long-term disability accidental death/dismemberment and supplemental life insurance. Monthly funding transfers are made from the General Fund to the Health Fund.
(320) Equipment Replacement Fund - This reserve was established to fund the replacement cost of existing equipment, vehicles and computers when they reach the end of their useful lives. The reserve has significantly reduced the budgetary fluctuations due to purchases of equipment and established the fixed asset inventory and depreciation schedule required by GASB 34.
Fiduciary Funds
These funds are used when a government holds or manages financial resources in an agent or fiduciary capacity. This single type is subdivided into four “sub-fund types” to account for various types of fiduciary obligations. These are the pension trust fund, nonexpendable trust fund, expendable trust fund, and agency funds.
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Trust Funds
Trust funds are used when governments manage pension and OPEB trust plans. The sources of revenues in these funds are transfers from other funds, interest earnings and employee contributions.
(600) Employees Retirement Fund - This fund accounts for the Town’s defined benefit retirement program for General, Lifeguard, Police Officers and Firefighter employees.
(610) Other Post Employment Benefits (OPEB) Trust Fund - This fund was established by Ordinance 9-06 to fund the portion of health care benefits paid by the Town for retirees.
Non-Expendable and Expendable Trust Funds
These consist of resources received from non-Town sources and held by the Town as trustee to be expended or invested in accordance with the conditions of the trust. In a non-expendable trust, the government typically is only permitted to spend the investment earnings and not the assets. The Town does not have non-expendable and expendable trust funds at the present time.
Agency Funds
Trust funds typically involve some degree of financial management. Agency funds are used when the government plays a more limited role by just collecting funds on behalf of a third party. The Town does not have an Agency Fund at the present time.
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Town of Palm Beach
Forecast Summary FY2019
General Fund Long-Term Financial Plan Forecast
Financial forecasts are the foundation of a long-term financial plan (LTFP). These forecasts provide the Mayor, Town Council and staff with information they need to more effectively determine future levels of service and methods of funding. This forecast of General Fund revenues and expenditures includes the FY18 budget and a 9 year forecast through FY27. This forecast was prepared after the Comprehensive Review of Town Operations and prior to the FY19 final budget adoption. The forecast was used as a guide to prepare the FY19 budget. Every department’s FY19 budget was below the LTFP estimate and below their FY18 adopted budget. The FY19 budget included expenditure reductions that will improve the forecast results for future years.
Assumptions
The forecast for the first 2 - 4 years is based upon recent trends and specific expectations. The forecast for the remaining years is less tactical and more mathematical, and is based primarily upon estimates by actuaries and long term inflation expectations.
The major assumptions that were used to prepare the forecast are as follows:
FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 | FY27 | |
Ad Valorem Tax Increase | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% | 3.25% |
General Inflation | 2.2% | 2.34% | 2.34% | 2.34% | 2.34% | 2.34% | 2.34% | 2.34% | 2.34% |
2.6% | 2.1% | 2.1% | 2.3% | 3.2% | 3.5% | 3.5% | 3.5% | 3.5% | |
Health Insurance | 7.0% | 6.5% | 6.0% | 5.5% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
Pension (ADEC) | -0.2% | 3.27% | 2.26% | -0.8% | -3.7% | -3.8% | -4.4% | -5.2% | -6.4% |
Other Employee Benefits | 1.4% | 3.2% | 3.4% | 3.7% | 3.9% | 3.9% | 4.2% | 4.2% | 4.2% |
Property Insurance | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
Liability Insurance | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% | 2.0% |
W/C Insurance | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% | 3.0% |
Revenue forecasts are based upon historical trends and recent activity. To be conservative, the ad valorem tax increase is projected at 3.25% per year rather than estimate the increase in taxable value. Each revenue category forecast is described in greater detail later in this section.
The assumption for inflation of 2.2% for FY19 and 2.34% for the remainder of the forecast period is based upon the forecast in the Livingston Survey issued by the Federal Reserve Bank of Philadelphia, this estimate has inched up this past year. The salary and wage assumption is based upon the average annual increases for all employee groups and forecasted retirements. Since no change for modifying merit pay was approved, we kept the same assumptions as in FY18. The health insurance forecast assumption is based upon input from our health consultant’s actuary. The pension forecast assumption was updated by the Town’s pension actuary and the FY19 estimate is based on the actual contribution in the September 30, 2017 actuarial report. The other employee benefit assumptions have been calculated based upon anticipated retirements and other inflation factors and does not include health insurance.
Property, Liability and Workmen’s Compensation insurance assumptions are based upon information received from our brokers regarding potential increases.
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Forecast Summary FY2019
2018 Forecast
The forecast charts shown on the following pages include a comparison the forecasts prepared in 2016 and 2017 to the current 2018 forecast. In some cases the forecast for 2016 and 2017 are identical. In 2016, only an internal working copy of the LTFP was produced after the 2016 budget was final. The 2016 numbers were used as the starting point for the 2017 forecast and the amounts were updated for 2017 where applicable. During FY18, staff and the Town Council have been able to make major reductions in expenditures and to slow future growth to sustainable levels. The 2018 forecast shows steady progress with meeting the Town’s needs for funding the additional contribution for the retirement program and maintaining service levels.
General Fund Revenue Forecast
The forecast for revenues is conservative and should allow for minor fluctuations in various revenue sources. The forecast contains revenue estimates for revenue increases approved by the Town Council in the Comprehensive Review of Town Operations. The forecast details for each major revenue category are included in this analysis.
Property Tax Revenue
Rather than using a complex formula anticipating taxable value and personal income growth, we forecast the increase in ad valorem revenues based upon a basic percentage increase estimate. The 2018 forecast includes the FY18 budget plus a 9 year forecast. Property tax revenues in FY18 increased by 3.99%. Over the past 5 years, taxable value has increased by 35% an average of 7.1% per year. We increased the forecast slightly since FY16, due to the recent trends in taxable value increases.
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Forecast Summary FY2019
Non Ad Valorem Taxes
Non ad valorem taxes include local option gas taxes, franchise fees and utility service taxes. The forecast for 2018 has increased because recent revenue collections have improved over the 2017 forecasts. The forecast trend chart is shown below:
License and Permit Revenue
License and permit revenue includes business licenses, building permit revenues and parking permits.
The FY17 forecast was adjusted downward after a sharp decline in revenues early in FY17. After the FY17 forecast was prepared, the permit revenues rebounded back to trend. FY18 revenue forecast has been adjusted for anticipated increases in right of way permits and taxi permits. In addition, FY18 revenue has improved and the forecast reflects the improvement in certain permit revenue sources.
57
Forecast Summary FY2019
Intergovernmental Revenue
Intergovernmental revenue includes revenue received from Federal, State, County and local government sources. Revenues from the State of Florida include State revenue sharing, local government sales tax and alcoholic beverage licenses. Local revenues include County occupational license revenue, and the 911 reimbursement from Palm Beach County. Federal and State grants are also included in this category.
The forecast for intergovernmental revenues has remained flat based on revenues received from the State of Florida for sales tax and revenue sharing. The FY18 budget and forecast contained anticipated grant funds, but the forecast does not plan for any grant revenue. The FY18 forecast decline is due to a reduction in 911 funding from Palm Beach County. The forecast anticipates a small inflationary increase per year in the State revenues.
58
Forecast Summary FY2019
Charges for Services
Charges for services include public safety fees, solid waste fees, parking meter collections and other small fees such as copy charges and lien searches. The forecast for 2018 reflects the current trend in these revenue sources and an anticipated increase in the lien search fee, ID cards, special solid waste pickups and the new proposed fees for lateral locates and cap off fees.
Fines and Forfeitures
Fine and Forfeiture revenue includes traffic violation fines and penalties, parking fines and penalties and code enforcement violation fines.
Revenues from these sources have decreased since the 2016 forecast. Parking ticket fines and moving violation revenue have decreased and the 2018 forecast has been adjusted to reflect the recent actual activity. The downward trend in these revenues reflect improved parking compliance.
59
Forecast Summary FY2019
Investment Income
We are forecasting investment returns will decrease from the FY17 forecast due to the rising interest rate environment. Recent increases in rates over the long term should have a positive impact on revenues.
In the short term certain bond funds may experience market losses. The Investment Advisory Committee and our investment consultants are monitoring the situation closely and will adjust the duration of the portfolios as required to mitigate the losses.
Miscellaneous and Transfers
Miscellaneous revenue includes rents and royalties, the sale of fixed assets and other revenue. Transfers include transfers from the Recreation Enterprise Fund. The increase in the 2018 forecast is due to new revenue from the p-card rebate program, and higher than anticipated DC forefeiture funds. The forecast decreases due to the reductions in the transfer from the Recreation Enterprise Fund. The Recreation Enterprise Fund transfer to the General Fund will decrease through 2020 and instead the funds will be directed to the Dock Replacement Fund to reduce the amount of borrowing for this project.
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Forecast Summary FY2019
Total General Fund Expenditures
The 2018 forecast contains additional funding of $5,420,000 annually for the pension fund, in addition, the forecast reflects the expenditure reductions from the Comprehensive Review of Town Operations (CROTO) to offset the additional pension funding. Changes in the forecast by category are described in the balance of this section.
Salary and Wages
The forecasted salary and wage increases are based upon the employee pay policies and replacements of retirees at lower salaries through the forecast period. The salary and wage assumption is based upon the average annual increases for all employee groups and forecasted retirements.
A combination of actions (changing pay policies, reducing staffing, etc.) has improved the salary forecast significantly over recent years. The 2018 forecast contains the personnel cuts outlined in the CROTO to take effect immediately and the reductions planed through attrition in future years. Since no change was approved in the merit pay system, the forecast reflects the current program.
61
Forecast Summary FY2019
Pension Benefits
The pension estimate is based upon the actuary’s forecast for pension costs for the annual required contribution and estimates for the General Employee DC contributions. The forecast for annual contributions is represented in the chart below with the navy blue bar. The actuary forecasts the costs to decline over the 10 year period which is an improvement from the forecast presented last year. The purple bar on the chart represents the annual required contribution plus the newly adopted annual additional contribution of $5,420,000 to reduce the UAAL.
The forecast reflects the Town’s Retirement Board recommended a change in the investment assumption from 7.5% to 7.0% over a 5-year period, the change in the wage assumption and the new mortality tables.
The forecast includes the updated lower DC contribution amounts for General Employees throughout the 9-year period. The new benefit changes eliminated the DC contributions for public safety employees.
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Forecast Summary FY2019
Other Employee Benefits
Other Employee Benefits includes all other benefits including health insurance. Health insurance costs have remained flat for four years. To be conservative, the health insurance forecast reflects an increase of 7% for FY19, then 6.5% for FY20 and .5% reductions until 5% increases are reflected thereafter.
Other employee benefits (including FICA, longevity, incentives, and allowances) are expected to increase at a much lower rate. The forecast decreased since 2016 due to the freeze in the longevity program and reduced FICA costs due to recent retirements and turnover.
Contractual
The contractual forecast since 2017 has decreased due to cuts in training, street sweeping, security monitoring, hedge trimming and air conditioning maintenance identified in the CROTO. Contractual expenditures are forecasted to increase by the rate of inflation.
63
Forecast Summary FY2019
Commodities
The commodity forecast is based upon the assumed rate of inflation. Commodity budgets include fuel, supplies, dues, software, some computer hardware and vehicle maintenance and uniforms.
Equipment Replacement/Capital Outlay
This category includes depreciation on Town vehicles and equipment that is charged to the departments and transferred to the Equipment Replacement Fund. It also includes purchases of new equipment that is not replacement equipment. The 2016 forecast contained a specific increase in the estimated replacement value of 3 fire-rescue pumpers due to higher than anticipated increases in the cost of these vehicles. The 2018 forecast is slightly higher than the 2017 forecast due to replacements made during the year.
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Forecast Summary FY2019
Transfers
The Transfers category includes transfers to the Capital Improvement Program, Coastal Protection Fund, Debt Service Fund, Risk Insurance Fund and Retiree Health Insurance Trust. It also includes the annual contingency allocation.
The FY18 budget includes a transfer to the Capital Improvement Program of $2,118,024 for Capital projects. This transfer is intended to begin to build reserves for capital projects once the ACIP bond funds have been spent. In subsequent years the forecast assumes a 10% increase per year until 2023 then a 5% increase thereafter. The increases are in anticipation of the expenditure of all of the bond proceeds in 2019 and the need to increase funding in the Capital Improvement fund going forward to move toward pay-as-you-go funding for capital improvement projects.
The Town Council approved a 10 year $84 million Coastal Protection program in 2013. The first year funding in FY15 was approved at $4,777,000. The transfer increased to $8,015,220 due to
65
Forecast Summary FY2019
increased beach renourishment project costs. In FY17, the transfer was lowered to $7,265,000 due to the reduction in scope of some projects. The forecast for FY18 forward assumes a 3% increase per year in funding.
Debt service decreased in FY17 due to the refunding of the 2010A bonds at a lower interest rate. The forecast includes the debt service on both the 2013 and 2016 bonds.
Risk insurance premium increases have been estimated as follows: Property Insurance 5% per year, Liability Insurance 2% per year, and Worker’s Compensation 3% per year throughout the forecast period.
Retiree Health Insurance is based upon a forecast for Town Contributions prepared by the Town’s actuary. Due to the over funded status of this trust the transfer has been reduced from
$960,000 in FY18. The amount included in the forecast is $546,800 which represents the amount needed to keep the plan 100% funded if the investment return assumption is set at 6.25%.
The General Fund contingency appropriation has been estimated to be 1% of the forecasted operating expenditures as required by Town policy. The General Fund contingency is funded through a transfer from fund balance rather than through operating revenues. The policy was modified to reduce the appropriation from 1.5% to 1% in FY18.
The Town’s contribution to the Four Arts Library is forecasted to increase by 3% per year.
Projected Surplus/ Deficit
The deficit prior to the completion of the Comprehensive Review of Town Operations was a little over $4 million for FY19. Through the comprehensive review we were able to reduce the deficit to $983,428.
During the FY19 budget process, the balance of the deficit was eliminated and additional funds were allocated to reduce the amortization of the UAAL from 25 years to 15 years. The final FY19 budget amounts will be used to prepare the upcoming Long Term Financial Plan. The update will be presented in the spring of 2019. The chart below reflects the forecasted surplus/deficits from the FY18 Long Term Financial Plan.
66
Fund Budget Overview
FY19 Total Budget
$268,815,571
General Fund
$82,466,218
General Fund
$82,466,218
Underground Utility Fund
$65,400,271
Underground Utility Fund
$65,400,271
Debt Service Funds Total
$7,652,945
Debt Service Funds Total
$7,652,945
Enterprise Fund Total
$8,160,603
Enterprise Fund Total
$8,160,603
Internal Service Fund Total
$13,379,227
Internal Service Fund Total
$13,379,227
Trust Fund Total
$38,148,141
Trust Fund Total
$38,148,141
Capital Project Funds Total
$53,608,166
2016A and 2013
Revenue Bonds
$6,939,182
CIP PayGo Fund
$22,590,424
Marina Fund
$5,331,475
Risk Insurance Fund
$5,346,644
Employe Retirement Fund
$34,262,758
2016A and 2013
Revenue Bonds
$6,939,182
CIP PayGo Fund
$22,590,424
Marina Fund
$5,331,475
Risk Insurance Fund
$5,346,644
Employe Retirement Fund
$34,262,758
2016B Revenue Bonds
$713,763
Coastal Protection Fund
$20,566,948
Par 3 Fund
$2,829,128
Health Insurance Fund
$5,069,593
Health Insurance Trust (OPEB)
$3,885,383
Worth Avenue Assessment
$277,426
Equipment Replacement Fund
$2,962,990
Accelerated Capital Improvement Fund
$10,173,368
67
General Special Debt Capital Enterprise Internal Trust & Totals Revenue Service Projects Service Agency |
Revenues | ||||||||
Ad Valorem Taxes | 54,210,963 | 0 | 0 | 0 | 0 | 0 | 0 | 54,210,963 |
Non Ad Valorem Taxes | 6,307,000 | 0 | 0 | 500,000 | 0 | 0 | 0 | 6,807,000 |
Licenses and Permits | 10,583,108 | 0 | 0 | 0 | 0 | 0 | 0 | 10,583,108 |
Intergovernmental | 1,076,255 | 0 | 0 | 13,717,824 | 0 | 0 | 0 | 14,794,079 |
Charges for Services | 4,395,558 | 0 | 0 | 0 | 7,017,486 | 8,793,915 | 0 | 20,206,959 |
Fines and Forfeitures | 1,171,000 | 0 | 0 | 0 | 0 | 0 | 0 | 1,171,000 |
Contributions/Grants | 0 | 0 | 0 | 8,068,280 | 0 | 0 | 12,287,765 | 20,356,045 |
Gain/Loss on Investments | 0 | 0 | 0 | 0 | 0 | 0 | 17,397,876 | 17,397,876 |
Interest Earnings | 828,000 | 250,000 | 0 | 518,000 | 0 | 195,000 | 1,600,000 | 3,391,000 |
Miscellaneous | 435,964 | 0 | 0 | 0 | 6,450 | 50,000 | 2,500 | 494,914 |
Special Assessments | 0 | 4,300,000 | 713,763 | 221,426 | 0 | 0 | 0 | 5,235,189 |
Bond Proceeds | 0 | 60,000,000 | 0 | 0 | 0 | 0 | 0 | 60,000,000 |
Interfund Transfers | 2,087,581 | 635,000 | 6,736,682 | 15,909,482 | 644,189 | 0 | 6,860,000 | 32,872,934 |
Subtotal | 81,095,429 | 65,185,000 | 7,450,445 | 38,935,012 | 7,668,125 | 9,038,915 | 38,148,141 | 247,521,067 |
Appropriations from Fund Balance | 1,370,789 | 215,271 | 202,500 | 14,673,154 | 492,478 | 4,340,312 | 0 | 21,294,504 |
Total Revenues | $82,466,218 | $65,400,271 | $7,652,945 | $53,608,166 | $8,160,603 | $13,379,227 | $38,148,141 | $268,815,571 |
Expenditures | ||||||||
Salaries and Wages | 26,200,355 | 102,476 | 0 | 121,414 | 814,866 | 175,412 | 130,716 | 27,545,239 |
Employee Benefits | 16,307,690 | 32,094 | 0 | 46,548 | 346,930 | 4,996,614 | 3,060,249 | 24,790,125 |
Contractual | 10,000,741 | 36,915,701 | 0 | 8,100 | 1,576,784 | 1,736,655 | 19,869,723 | 70,107,704 |
Commodities | 1,775,363 | 0 | 0 | 3,700 | 364,750 | 37,211 | 324 | 2,181,348 |
Depreciation/Capital Outlay | 2,404,707 | 0 | 0 | 51,108,498 | 3,405,466 | 1,604,602 | 0 | 58,523,273 |
Debt Service | 0 | 28,350,000 | 7,632,945 | 0 | 199,338 | 48,312 | 0 | 36,230,595 |
Interfund Transfers | 24,872,304 | 0 | 0 | 1,042,606 | 1,307,160 | 780,421 | 0 | 28,002,491 |
Other | 905,058 | 0 | 20,000 | 603,750 | 145,309 | 4,000,000 | 0 | 5,674,117 |
Subtotal | 82,466,218 | 65,400,271 | 7,652,945 | 52,934,616 | 8,160,603 | 13,379,227 | 23,061,012 | 253,054,892 |
Transfer to Fund Balance/Retained Earnings | 0 | 0 | 0 | 673,550 | 0 | 0 | 15,087,129 | 15,760,679 |
Total Expenditures | $82,466,218 | $65,400,271 | $7,652,945 | $53,608,166 | $8,160,603 | $13,379,227 | $38,148,141 | $268,815,571 |
Financial Ratios | ||||||||
General | Special Revenue | Debt Service | Capital Projects | Enterprise | Internal Service | Trust & Agency | Total | |
Ad Valorem Taxes as | ||||||||
percentage of total fund | ||||||||
budget | 65.74% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 20.17% |
Ad Valorem Taxes per capita | ||||||||
(8,291 population) | $6,539 | $0 | $0 | $0 | $0 | $0 | $0 | $6,539 |
Total expenditures per capita | ||||||||
(8,291 population) | $9,946 | $7,888 | $923 | $6,466 | $984 | $1,614 | $4,601 | $32,423 |
Personnel as a percentage of | ||||||||
the total budget | 31.77% | 0.00% | 0.00% | 0.23% | 9.99% | 1.31% | 0.34% | 10.25% |
Capital expenditures as | ||||||||
percentage of total fund | ||||||||
budget | 2.92% | 0.00% | 0.00% | 95.34% | 41.73% | 11.99% | 0.00% | 21.77% |
Capital expenditures per | ||||||||
capita (8,291 population) | $290 | $0 | $0 | $6,164 | $411 | $194 | $0 | $7,059 |
68
Special Debt Capital Internal Trust & General Revenue Service Projects Enterprise Service Agency Totals |
FY19 Budget by Revenue Type All Funds
Interfund Transfers 15.7%
0.0%
Special Assessments
Appropriations from Fund Balance
10.2%
Ad Valorem Taxes 26.0%
Sales and Use Taxes
2.5%
Miscellaneous 0.2%
Interest Earnings 1.6%
Contributions 9.7%
3.3%
Intergovernmental Revenue 7.1%
Licenses and Permits 5.1%
Gain/Loss on Investments
8.3%
Fines and Forfeitures 0.6%
Charges for Services 9.7%
FY19 Budget by Expenditure Classification All Funds
Contractual 26.1%
Commodities 0.8%
Capital Outlay 21.8%
Debt Service 13.5%
Employee Benefits
Other
Interfund Transfers 10.4%
9.2%
Personnel
10.2%
2.1% Transfer to Fund Balance/Retained Earnings
5.9%
69
Summary of Major Revenues by Fund Type FY19 Budget FY19 Budget to FY2019 FY2016 FY2017 FY2018 FY2018 FY2019 FY18 Budget % Description Actual Actual Budget Projected Budget % Variance of Total | |||||||
General Fund | |||||||
Ad Valorem Taxes | $47,882,187 | $50,195,981 | $51,470,500 | $52,282,254 | $54,210,963 | 5.32% | 65.74% |
Sales and Use Taxes | 8,061,358 | 8,353,686 | 8,425,000 | 8,409,147 | 6,307,000 | -25.14% | 7.65% |
Licenses and Permits | 10,096,672 | 7,692,114 | 7,672,975 | 10,621,668 | 10,583,108 | 37.93% | 12.83% |
Intergovernmental Revenue | 1,122,466 | 1,028,493 | 1,185,450 | 1,373,880 | 1,076,255 | -9.21% | 1.31% |
Charges for Services | 4,131,755 | 3,681,922 | 3,943,650 | 3,786,307 | 4,395,558 | 11.46% | 5.33% |
Fines and Forfeitures | 1,174,838 | 799,769 | 1,138,800 | 1,200,268 | 1,171,000 | 2.83% | 1.42% |
Interest Earnings | 490,102 | 421,515 | 581,858 | 694,021 | 828,000 | 42.30% | 1.00% |
Miscellaneous | 332,898 | 516,273 | 420,000 | 419,183 | 435,964 | 3.80% | 0.53% |
Interfund Transfers | 785,000 | 685,000 | 585,000 | 585,000 | 2,087,581 | 256.85% | 2.53% |
Subtotal | 74,077,276 | 73,374,754 | 75,423,233 | 79,371,727 | 81,095,429 | 7.52% | 98.34% |
Appropriations from Fund Balance | 0 | 0 | 5,065,996 | 0 | 1,370,789 | -72.94% | 1.66% |
Total General Fund | $74,077,276 | $73,374,754 | $80,489,229 | $79,371,727 | $82,466,218 | 2.46% | 100.00% |
Special Revenue Funds | |||||||
Interest Earnings | 0 | 16,531 | 6,000 | 221,921 | 250,000 | 4066.67% | 0.38% |
Special Assessments | 0 | 0 | 5,080,000 | 0 | 4,300,000 | 100.00% | 6.57% |
Miscellaneous Revenue | 0 | 0 | 0 | 34,900 | 0 | ||
Donations | 0 | 49,250 | 0 | 0 | 0 | 0.00% | 0.00% |
Commercial Paper | 0 | 0 | 14,450,000 | 22,650,000 | 60,000,000 | 100.00% | 91.74% |
Interfund Transfers | 2,530,250 | 1,027,241 | 13,880,000 | 1,130,000 | 635,000 | -95.43% | 0.97% |
Subtotal | 2,530,250 | 1,093,022 | 33,416,000 | 24,036,821 | 65,185,000 | 95.07% | 99.67% |
Appropriations from Fund Balance | 0 | 0 | 1,152,300 | 0 | 215,271 | -81.32% | 0.33% |
Total Debt Service Funds | $2,530,250 | $1,093,022 | $34,568,300 | $24,036,821 | $65,400,271 | 89.19% | 100.00% |
Debt Service Funds | |||||||
Interest Earnings | 0 | 0 | 0 | 2,762 | 0 | #DIV/0! | 0.00% |
Special Assessments | 778,384 | 752,483 | 710,000 | 747,876 | 713,763 | 0.53% | 9.33% |
Bond Proceeds | 58,432,064 | 0 | 0 | 0 | 0 | 0.00% | 0.00% |
Interfund Transfers | 7,200,725 | 7,114,433 | 6,916,632 | 6,916,632 | 6,736,682 | -2.60% | 88.03% |
Subtotal | 66,411,173 | 7,866,916 | 7,626,632 | 7,667,270 | 7,450,445 | -2.31% | 97.35% |
Appropriations from Fund Balance | 0 | 0 | 18,214 | 0 | 202,500 | 100.00% | 2.65% |
Total Debt Service Funds | $66,411,173 | $7,866,916 | $7,644,846 | $7,667,270 | $7,652,945 | 0.11% | 100.00% |
Capital Projects Funds | |||||||
Interest Earnings | 366,723 | 300,640 | 377,676 | 376,368 | 518,000 | 37.15% | 0.97% |
Sales and Use Taxes | 0 | 350,847 | 500,000 | 576,792 | 500,000 | 100.00% | 0.93% |
Grants/Interlocal/Donations | 3,115,073 | 43,385 | 7,200,000 | 7,005,861 | 21,781,104 | 202.52% | 40.63% |
Special Assessment Revenue | 238,544 | 231,827 | 258,638 | 230,625 | 221,426 | -14.39% | 0.41% |
Loan Proceeds/Contributions | 1,000,000 | 5,000 | 5,000 | 5,000 | 5,000 | 0.00% | 0.01% |
Miscellaneous | 8,399 | 27,015 | 0 | 21,000 | 0 | 0.00% | 0.00% |
Interfund Transfers | 9,368,393 | 9,555,200 | 12,212,624 | 12,148,324 | 15,909,482 | 30.27% | 29.68% |
Subtotal | 14,097,132 | 10,513,914 | 20,553,938 | 20,363,970 | 38,935,012 | 89.43% | 72.63% |
Appropriations from Fund Balance | 0 | 0 | 26,403,936 | 0 | 14,673,154 | -44.43% | 27.37% |
Total Capital Projects Funds | $14,097,132 | $10,513,914 | $46,957,874 | $20,363,970 | $53,608,166 | 14.16% | 100.00% |
Enterprise Funds | |||||||
Charges for Services | $6,096,133 | $6,326,297 | $6,615,500 | $6,864,481 | $7,017,486 | 6.08% | 85.99% |
Interest Earnings | 65,492 | 40,652 | 14,400 | 63,516 | 0 | -100.00% | 0.00% |
Grants/Interlocal/Donations | 0 | 98,642 | 6,571,154 | 1,761,358 | 0 | -100.00% | 0.00% |
Interfund Transfers | 0 | 0 | 0 | 0 | 644,189 | 0.00% | 7.89% |
Miscellaneous | 14,059 | 39,919 | 11,500 | 5,876 | 6,450 | -100.00% | 0.08% |
Subtotal | 6,175,684 | 6,505,510 | 13,212,554 | 8,695,231 | 7,668,125 | -41.96% | 93.97% |
Appropriations from Retained Erngs. | 0 | 0 | 3,017,334 | 0 | 492,478 | -83.68% | 6.03% |
Total Enterprise Funds | $6,175,684 | $6,505,510 | $16,229,888 | $8,695,231 | $8,160,603 | -49.72% | 100.00% |
Internal Service Funds | |||||||
Interest Earnings | $345,979 | $133,323 | $286,162 | $170,280 | $195,000 | -31.86% | 1.46% |
Miscellaneous | 748,973 | 292,820 | 30,000 | 418,588 | 50,000 | 66.67% | 0.37% |
Interfund Transfers | 0 | 475,996 | 12,750,000 | 0 | 0 | 100.00% | 0.00% |
Charges for Services | 9,328,014 | 9,277,973 | 9,084,571 | 9,128,896 | 8,793,915 | -3.20% | 65.73% |
Subtotal | 10,422,966 | 10,180,112 | 22,150,733 | 9,717,764 | 9,038,915 | -59.19% | 67.56% |
Appropriations from Retained Erngs. | 0 | 0 | 7,125,900 | 0 | 4,340,312 | -39.09% | 32.44% |
Total Internal Service Funds | $10,422,966 | $10,180,112 | $29,276,633 | $9,717,764 | $13,379,227 | -54.30% | 100.00% |
70
Summary of Major Revenues by Fund Type FY19 Budget FY19 Budget to FY2019 FY2016 FY2017 FY2018 FY2018 FY2019 FY18 Budget % Description Actual Actual Budget Projected Budget % Variance of Total |
Trust & Agency Funds | |||||||
Interest Earnings | 1,896,271 | 1,559,043 | 2,250,000 | 1,623,139 | 1,600,000 | -28.89% | 4.19% |
Gain/Loss on Investments | 14,443,006 | 23,772,945 | |||||