TOWN OF PALM BEACH

Information for First Public Hearing on: September 10, 2019

To: Mayor and Town Council Via: Kirk Blouin, Town Manager

From: Jane Le Clainche, Finance Director

Re: FY20 Budget – First Public Hearing - Tentative Millage Rate and Budget Approval. Date: August 30, 2019

STAFF RECOMMENDATION

Staff requests that the Town Council approve Resolution No. 70-2019 for the tentative millage rate and Resolution No. 79-2019 for the proposed budget for FY20.

Staff also requests that the Town Council approve Resolution Nos. 71-2019, 72-2019, 73- 2019, 74-2019, 75-2019, 76-2019, 77-2019, 78-2019 all relating to the Town’s Non Ad Valorem Assessments.

GENERAL INFORMATION

At the July 11th Special Town Council meeting, the Town Council reviewed the proposed budget and millage rate for FY20. The proposed millage rate to be adopted at the September 10th public hearing is 3.0681, representing a reduction of 2.13% from the FY19 millage rate of 3.1350.

The attached exhibit shows the proposed final General Fund budget for FY20. As directed at the July 11th meeting, we have eliminated the transfer from the Marina to the General Fund of $560,000. In addition, we recorded the additional revenue of $103,500 from the parking meter and parking placard fee increases that were adopted at the meeting. To close the gap we reduced the transfer to the Coastal Management Fund by $456,500 to a total of

$6,520,211 for FY20. Based on the updated coastal budget and forecast we believe there will be more than sufficient funds in the Coastal Management Fund for the projects budgeted through 2029.

For FY19, barring a severe storm event, we expect to add approximately $5 million to unassigned fund balance once the audit is complete.

An updated copy of the budget message is included for your convenience in this backup.

NON AD VALOREM ASSESSMENTS

The backup for non ad valorem assessments is included within this document and each assessment Resolution has an accompanying memorandum describing the assessment detail.

SPECIAL CONSIDERATIONS

Second Public Hearing Date:

The second public hearing will be held on Wednesday, September 18, 2019 at 5:01pm.

Attachments jll

cc: Jay Boodheshwar, Deputy Town Manager Department Directors

TOWN OF PALM BEACH

TENTATIVE - SUBJECT TO REVISION

TENTATIVE - SUBJECT TO REVISION

Town Manager’s Office

SPECIAL TOWN COUNCIL MEETING AGENDA

TOWN COUNCIL CHAMBERS TUESDAY, SEPTEMBER 10, 2019

5:01 PM WELCOME!

1. CALL TO ORDER AND ROLL CALL Mayor Gail L. Coniglio

   Danielle H. Moore, President

   Margaret A. Zeidman, President Pro Tem Julie Araskog

   Lew Crampton Bobbie Lindsay

   
   

2. PLEDGE OF ALLEGIANCE

   
   

3. APPROVAL OF AGENDA

   
   

4. PUBLIC HEARING ON PROPOSED MILLAGE RATE, TENTATIVE FY20 BUDGETS AND NON-AD VALOREM ASSESSMENTS

   
   

   1. Notice of Proposed Property Taxes

      
      

   2. Proposed Operating Millage Rate

      
      

   3. Reasons for Proposed Operating Millage Rate Increase over the Rolled- Back Millage Rate

      
      

   4. Comments and Questions from Public

      
      

      Post Office Box 2029 * 360 South County Road * Palm Beach, Florida 33480 Telephone (561) 838-5410 * Facsimile (561) 838-5411 * townmanager@townofpalmbeach.com

   5. Discussion and Adoption (with changes, if any) of Proposed Operating Millage Rate for FY20.

      
      

      1. RESOLUTION NO. 70-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Adopting the Proposed Millage Rate Necessary to Fund the Tentative General (Operating) Fund Budget for the 2019 - 2020 Fiscal Year.

         
         

   6. Non-Ad Valorem Assessments

      
      

      1. Commercial Solid Waste Fee Assessments [H. Paul Brazil, Director of Public Works]

         
         

         1. RESOLUTION NO. 71-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Collection and Disposal of Commercial Solid Waste; Establishing the Solid Waste Cost and Rate of Assessment; Imposing Solid Waste Service Assessments Against Certain Assessed Property Located Within the Town of Palm Beach; Approving the Updated Solid Waste Assessment Roll; Confirming the Preliminary Rate Resolution; Providing for Severability and Providing an Effective Date.

            
            

      2. Worth Avenue Commercial District Improvement Project [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 72-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Provision of the Worth Avenue Improvement Project; Providing Authority and Definitions; Approving the Final Assessment Rolls; Providing for the Continued Imposition of the Improvement Assessments to Fund the Worth Avenue Improvement Project and Imposition of the Maintenance Assessments to Fund the Related Maintenance Services; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing for the Effect of this Resolution; Providing Severability and an Effective Date.

            
            

      3. Via Fontana Underground Conversion Project [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 73-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Provision of the Underground Utility Improvements within the Via Fontana Assessment Area;

            
            

            September 10, 2019, Public Hearing

            Approving the Updated Assessment Roll; Providing for the Continued Imposition of the Assessments to Fund the Underground Utility Improvements Within the Via Fontana Assessment Area; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing Severability and an Effective Date.

            
            

      4. Everglades Island Underground Conversion Project [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 74-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Provision of the Underground Utility Improvements within the Everglades Island Assessment Area; Approving the Updated Assessment Roll; Providing for the Continued Imposition of the Assessments to Fund the Underground Utility Improvements Within the Everglades Island Assessment Area; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing Severability and an Effective Date.

            
            

      5. Peruvian Avenue 400 Block Streetscape Project [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 75-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Provision of the Peruvian Avenue Improvement Project; Providing Authority and Definitions; Approving the Final Assessment Rolls; Providing for the Continued Imposition of the Improvement Assessments to Fund the Peruvian Avenue Improvement Project and Imposition of the Maintenance Assessments to Fund the Related Maintenance Services; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing for the Effect of this Resolution; Providing Severability and an Effective Date.

            
            

      6. Town Wide Underground Utility Project Assessments [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 76-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Provision of the Underground Utility Improvements within the Townwide Underground Utility Assessment Area; Approving the Updated Assessment Roll; Providing for the Continued Imposition of the Assessments to

            
            

            September 10, 2019, Public Hearing

            Fund the Underground Utility Improvements Within the Townwide Underground Utility Assessment Area; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing Severability and an Effective Date.

            
            

      7. Nightingale La Puerta Underground Conversion Project [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 77-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County Florida, Relating to the Provision of the Underground Utility Improvements within the Nightingale-La Puerta Assessment Area; Approving the Updated Assessment Roll; Providing for the Continued Imposition of the Assessments to Fund the Underground Utility Improvements Within the Nightingale – La Puerta Assessment Area; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing Severability and an Effective Date.

            
            

      8. Lake Towers Underground Conversion Project [Jane Le Clainche, Director of Finance]

         
         

         1. RESOLUTION NO. 78-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Provision of the Underground Utility Improvements Within the Lake Towers Assessment Area; Approving the Updated Assessment Roll; Providing for the Continued Imposition of the Assessments to Fund the Underground Utility Improvements Within the Lake Towers Assessment Area; Providing for Collection of the Assessments Pursuant to the Uniform Assessment Collection Act; Providing Severability and an Effective Date.

            
            

   7. Discussion and Adoption (with changes, if any) of a Tentative Operating Budget, Debt Service Budget, and Budgets for Other Funds for FY20.

      
      

      1. RESOLUTION NO. 79-2019 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Adopting the Tentative General (Operating) Fund, Debt Service Fund and Budgets for Other Funds for the 2019-2020 Fiscal Year.

         
         

   8. Second and Final Public Hearing to Adopt the Final Millage Rate and Budgets will be on Wednesday, September 18, 2019 at 5:01 p.m., in the Town of Palm Beach Council Chambers.

      
      

      September 10, 2019, Public Hearing

      
      

      
      

5. ANY OTHER MATTERS

   
   

6. ADJOURNMENT

PLEASE TAKE NOTE:

The progress of this meeting may be monitored by visiting the Town’s website (www.townofpalmbeach.com) and clicking on “Meeting Audio” in the left column. If you have questions regarding that feature, please contact the Office of Information Systems (561) 227-6315. The audio recording of the meeting will appear within 24 hours after the conclusion of the meeting.

Disabled persons who need an accommodation in order to participate in the Town Council Meeting are requested to contact the Town Manager’s Office at 838-5410 or through the Florida Relay Service by dialing 1-800-955-8770 for voice callers or 1-800-955-8771 for TDD callers, at least two (2) working days before this meeting.

September 10, 2019, Public Hearing

Town of Palm Beach Executive Summary

PROPOSED BUDGET FOR FISCAL YEAR 2019-2020

Town of Palm Beach

PRESENTATION FOR SEPTEMBER 10, 2019, PUBLIC HEARING

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Executive Summary

Town of Palm Beach

Town of Palm Beach, Florida

September 10, 2019

Honorable Mayor, Town Council and Residents of the Town of Palm Beach;

The proposed FY2020 budget, represents staff’s continuing efforts to reduce expenditures and reorganize Town operations to ensure the most efficient and effective delivery of high quality public services. A thorough review of each departments’ proposed budget and their operations was completed.

This proposed budget is the result of the second year of hard work to find efficiencies and apply lean government principles on a Town-wide basis, but this is a continuous process and will be an ongoing effort each year. We expect to see further reductions in expenditures and increased revenues in FY21 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 to accomplish this goal.

The Purchasing Division has continued to contribute quantitatively and qualitatively to the strategic goals of the Town of Palm Beach by continuing to engage best business practices to achieve efficiencies, transparency, and maximize the value of public funds with the goal of promoting cost savings to the Town’s purchasing efforts while achieving best value for goods, services, and construction. During FY19, the Purchasing Division implemented E-Bidding with the goal of increasing the number of proposers/bidders. Increased competition historically promotes better pricing. Of the five construction projects issued for solicitation under the new E-Bidding Platform, all submittals came in under the Opinion of Cost Estimates, which was a first. This platform will enable the Town to garner more competition, better value and new pools of proposers/vendors. The Purchasing Division sponsored two vendor workshops with the goal of increased participation by new firms. Additional vendor workshops are being planned. Purchasing now issues solicitations on three known websites, with the average number of 300 plus notifications being sent for each solicitation.

In a continuation from FY18 best practice initiatives, the Purchasing Division has utilized an online site for sale of surplus items where the Town pays no fees and has garnered for the FY19 budget cycle $191,313 during the first eleven months of the fiscal year. For solicitations issued, the Town has continued to drive negotiations before any recommendation is made to Town Council. For items being purchased for installation such as the new playground, the Town has continued the process of Direct Owner Purchases where the purchase order is issued directly to the equipment

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Executive Summary

Town of Palm Beach

supplier, with the contractor assuming responsibility for receipt and installation, thus the Town pays no sales tax for the commodity. Cost savings for Direct Owner Purchases and Negotiations reflect a savings in the first eleven months of FY19 of $155,425.

General Fund

Historical Trends – Expenditures

For purposes of the General Fund discussion, we have provided 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 FY20 budget compares to previous fiscal years. We compare the FY20 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. In addition, another table is shown that contains the FTE history for all departments back to 2009.

The years FY2009 through FY2018 represent actual costs, FY2019 numbers are the adopted budget, and FY2020 represents the proposed budget.

The overall General Fund expenditures have increased since FY09 by a total of 28.17% or 2.56% per year for the last 11 years. Since FY12, expenditures have increased by 50.13% or 6.27% 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 projects, and large transfers to various funds. Since FY09, operating expenditures have increased $4,142,843 or 7.46%, for an average annual change of 0.68%, and since FY12, operating expenditures have increased by $14,745,411 or 32.81%, for an average annual change of 4.10%. Transfers and other expenses since FY09 have increased by 139.53% or $14,418,261, representing an average annual change of 12.68%, and since FY12, these expenses have increased $13,451,254 or 119.03% for an average annual change of 14.88%.

FY12 to FY20

Highlights of the major increases since FY12 are described below:

• Total expenditures have increased by 50.13% (6.27% annually) and total operating cost increased by 32.81% or $14,745,411 (4.10% annually).

• The largest driver of expenditure increases since FY12 were pension costs for current employees and retirees receiving legacy benefits, which increased $7,629,271 plus the extraordinary contribution of $5,420,000 to fund the lowering of the assumed rate of return. These costs represent 46.3% of the General Fund total increase during this time period. The increase in funding should return the pension fund to healthy levels in the next five to ten years depending on investment returns.

  

  Executive Summary

  Town of Palm Beach

  

• Salary and wage costs have increased $3,630,995 or 12.88% of the total increase. The recent compensation and benefit study costs in FY20 are a portion of the increase.

• Contractual costs have increased $3,663,440 (12.9% 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 $1,080,497 since 2012.

• The transfer to the coastal management fund has increased $2,560,211 or 9.08% of the total. In FY15, $4,777,000 was added to Town taxes to begin developing a permanent funding source for the coastal program.

• Debt service costs increased $2,483,913 or 8.81% of the total increase since 2012 due to the issuance of the 2013 revenue bonds.

• The transfer to the Capital Improvement Fund have increased by $1,420,000 or 142% to build up reserves for future capital projects. These costs represent 5.04% of the total increase.

  These six expenditures represent 95.01% of the increase over FY2012. Other important budget trends since FY12 include the following:

• Other employee benefit costs over this time period have decreased by 11.3% or $915,202. 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 were experiencing increases.

• Depreciation costs have increased $541,384 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 $80,250 due to the programmed 3% per year increase in funding plus an additional contribution in FY17.

• The other category increases which include commodities, and Risk Insurance increased by less than the rate of inflation over this time period.

  FY09 – FY20

  To put the FY20 proposed budget into further context, if we were to look back 11 years and compare the FY20 budget to the FY09 budget:

• Total expenditures have increased by 28.17% (2.56% annually) and total operating costs increased $4,142,843 or 7.46% or 0.68% annually.

• The pension costs including the annual required contribution, the extraordinary contribution contributed to 52.96% of the total increase for a total of $9,830,593.

• Salary costs decreased by $205,578 and benefit costs declined by $1,739,242. Total FTEs decreased from 410.39 in FY09 to 362.24 in FY20, a decrease of 48.15 employees. The

  
  

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  Executive Summary

  Town of Palm Beach

  

  FY20 budget includes additional Part time no benefits (PTNB) staffing of 7.48 FTE. The bulk of this increase in PTNB staffing is for the new Recreation Center 7 day a week operation, which will enhance services to the community and increase revenues. Full time staffing declined by 1 position in the proposed FY20 budget. A complete analysis of staffing can be found later in this document.

• Contractual costs increased by $1,969,351 or 22.6%. 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 special detail overtime, 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 $14,418,261 or 139.5% over the 11-year period, representing an average annual change of 12.68%. These categories alone accounted for 77.7% of the total increase over this time period.

  The pie chart below shows the increases/(decreases) by category of expenditure from 2009 – 2020.

  

  
  

  A summary table can be found on the following page showing the expenditures by category since FY2009 followed by a table showing FTE history from FY09 through FY20.

  Executive Summary

  Town of Palm Beach

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  Executive Summary

  Town of Palm Beach

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  
  

  Expenditure Category	FY2009	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY19 vs. FY20 Difference	% Change	Change vs. FY09	Average Annual Change	Change vs FY12	Average Annual Change
  Salary and Wages	$ 26,810,179	$ 26,005,698	$ 23,976,640	$ 22,973,606	$ 22,450,839	$ 22,668,667	$ 22,939,819	$ 22,881,069	$ 23,819,924	$ 23,379,627	$25,800,355	$26,604,601	$ 804,246	3.12%	-0.77%	-0.07%	15.81%	1.98%
  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	9,376,327	10,514,497	11,043,453	528,956	5.03%	66.50%	6.05%	223.46%	27.93%
  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	7,702,200	7,094,515	7,183,033	88,518	1.25%	-19.49%	-1.77%	-11.30%	-1.41%
  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	10,021,787	10,000,741	10,682,513	681,772	6.82%	22.60%	2.05%	52.19%	6.52%
  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	1,733,077	1,775,363	1,753,420	(21,943)	-1.24%	0.50%	0.05%	12.55%	1.57%
  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	2,538,572	2,404,707	2,422,703	17,996	0.75%	-11.05%	-1.00%	28.78%	3.60%
  Subtotal Operating Expenditures	55,546,880	53,034,216	51,764,500	44,944,312	46,162,149	48,328,923	49,386,834	51,208,033	55,179,431	54,751,590	57,590,178	59,689,723	2,099,545	3.65%	7.46%	0.68%	32.81%	4.10%
  Special Assignment OT	536,382	353,370	419,899	653,762	493,138	483,568	538,877	700,786	308,713	384,442	400,000	1,400,000	1,000,000	250.00%	161.01%	14.64%	114.15%	14.27%
  Library	272,400	272,400	272,400	272,400	288,989	297,659	306,580	315,777	350,250	335,008	345,058	352,650	7,592	2.20%	29.46%	2.68%	29.46%	3.68%
  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	1,900,819	2,760	0.15%	-0.90%	-0.08%	6.10%	0.76%
  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	2,118,024	2,200,000	2,420,000	220,000	10.00%	33.19%	3.02%	142.00%	17.75%
  Transfer to Underground Utility Fund		-	-	-	-	-	-	2,530,250	267,041	-	135,000	144,450	9,450	7.00%	#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	5,983,913	(10,825)	-0.18%	57.89%	5.26%	70.97%	8.87%
  Transfer to Coastal Management 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	6,520,211	(828,913)	-11.28%	226.01%	20.55%	64.65%	8.08%
  Extraordinary Transfer to Retirement Fund	-	-	-	-	-	-	-	-	2,500,000	4,759,016	5,420,000	5,420,000	-	0.00%	#N/A	#N/A	#N/A	#N/A
  Additional Contribution for UAAL Amort.	-	-	-	-	-	-	-	-	-	-	574,061	-	(574,061)	-100.00%	#N/A	#N/A	#N/A	#N/A
  Contingency		-	-	-	-	-	-	-	-	-	560,000	610,000	50,000	8.93%	#N/A	#N/A	#N/A	#N/A
  Subtotal Transfers and Contingency	10,333,782	12,328,090	9,801,645	11,300,789	11,940,006	16,957,227	21,247,819	20,792,090	20,907,969	22,817,596	24,876,040	24,752,043	(123,997)	-0.50%	139.53%	12.68%	119.03%	14.88%
  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	$ 77,569,186	$ 82,466,218	$ 84,441,766	$ 1,975,548	2.40%	28.17%	2.56%	50.13%	6.27%
  FTE Totals	410.39	399.98	367.33	362.65	353.94	348.94	360.18	365.09	362.87	370.87	356.12	361.23	5.11	1.43%	-11.98%	-1.09%	-0.39%	-0.05%

  Expenditure Category	FY2009	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY19 vs. FY20 Difference	% Change	Change vs. FY09	Average Annual Change	Change vs FY12	Average Annual Change
  Salary and Wages	$ 26,810,179	$ 26,005,698	$ 23,976,640	$ 22,973,606	$ 22,450,839	$ 22,668,667	$ 22,939,819	$ 22,881,069	$ 23,819,924	$ 23,379,627	$25,800,355	$26,604,601	$ 804,246	3.12%	-0.77%	-0.07%	15.81%	1.98%
  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	9,376,327	10,514,497	11,043,453	528,956	5.03%	66.50%	6.05%	223.46%	27.93%
  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	7,702,200	7,094,515	7,183,033	88,518	1.25%	-19.49%	-1.77%	-11.30%	-1.41%
  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	10,021,787	10,000,741	10,682,513	681,772	6.82%	22.60%	2.05%	52.19%	6.52%
  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	1,733,077	1,775,363	1,753,420	(21,943)	-1.24%	0.50%	0.05%	12.55%	1.57%
  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	2,538,572	2,404,707	2,422,703	17,996	0.75%	-11.05%	-1.00%	28.78%	3.60%
  Subtotal Operating Expenditures	55,546,880	53,034,216	51,764,500	44,944,312	46,162,149	48,328,923	49,386,834	51,208,033	55,179,431	54,751,590	57,590,178	59,689,723	2,099,545	3.65%	7.46%	0.68%	32.81%	4.10%
  Special Assignment OT	536,382	353,370	419,899	653,762	493,138	483,568	538,877	700,786	308,713	384,442	400,000	1,400,000	1,000,000	250.00%	161.01%	14.64%	114.15%	14.27%
  Library	272,400	272,400	272,400	272,400	288,989	297,659	306,580	315,777	350,250	335,008	345,058	352,650	7,592	2.20%	29.46%	2.68%	29.46%	3.68%
  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	1,900,819	2,760	0.15%	-0.90%	-0.08%	6.10%	0.76%
  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	2,118,024	2,200,000	2,420,000	220,000	10.00%	33.19%	3.02%	142.00%	17.75%
  Transfer to Underground Utility Fund		-	-	-	-	-	-	2,530,250	267,041	-	135,000	144,450	9,450	7.00%	#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	5,983,913	(10,825)	-0.18%	57.89%	5.26%	70.97%	8.87%
  Transfer to Coastal Management 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	6,520,211	(828,913)	-11.28%	226.01%	20.55%	64.65%	8.08%
  Extraordinary Transfer to Retirement Fund	-	-	-	-	-	-	-	-	2,500,000	4,759,016	5,420,000	5,420,000	-	0.00%	#N/A	#N/A	#N/A	#N/A
  Additional Contribution for UAAL Amort.	-	-	-	-	-	-	-	-	-	-	574,061	-	(574,061)	-100.00%	#N/A	#N/A	#N/A	#N/A
  Contingency		-	-	-	-	-	-	-	-	-	560,000	610,000	50,000	8.93%	#N/A	#N/A	#N/A	#N/A
  Subtotal Transfers and Contingency	10,333,782	12,328,090	9,801,645	11,300,789	11,940,006	16,957,227	21,247,819	20,792,090	20,907,969	22,817,596	24,876,040	24,752,043	(123,997)	-0.50%	139.53%	12.68%	119.03%	14.88%
  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	$ 77,569,186	$ 82,466,218	$ 84,441,766	$ 1,975,548	2.40%	28.17%	2.56%	50.13%	6.27%
  FTE Totals	410.39	399.98	367.33	362.65	353.94	348.94	360.18	365.09	362.87	370.87	356.12	361.23	5.11	1.43%	-11.98%	-1.09%	-0.39%	-0.05%

  

  
  

  

  

  

  

  Executive Summary

  Town of Palm Beach

  
  

  FTE History FY09 – FY20 (Includes Full Time and Part Time No Benefits Staffing)

  
  

  Department/Fund	FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20
  Town Manager	6.00	6.00	5.00	5.10	5.10	5.10	5.10	5.00	8.00	8.00	7.00	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	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	3.77
  Finance	17.95	17.45	17.45	17.95	18.14	18.14	18.64	18.56	15.56	15.56	14.74	14.69
  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	25.75
  Fire-Rescue	81.50	90.20	86.40	82.90	79.90	75.90	75.90	75.90	75.90	81.90	78.40	81.40
  Police	129.5	115.05	102.85	103.85	104.35	103.35	103.35	103.35	103.35	102.85	101.35	102.20
  Public Works	101.46	97.75	86.35	86.85	88.02	88.04	87.04	88.54	88.07	88.64	83.64	80.85
  Recreation/Tennis	17.03	16.81	16.66	14.89	9.49	10.21	15.25	15.18	13.81	14.4	11.75	20.04
  Town Docks	3.63	3.63	2.63	3.77	2.63	2.63	2.85	3.17	3.17	3.13	4.19	3.32
  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	8.68
  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	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	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	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	1.63
  Health Fund	1.10	1.10	0.53	0.80	0.79	0.79	0.79	0.97	1.01	1.01	0.92	0.92
  OPEB Trust	0.50	0.50	0.45	0.72	0.73	0.73	0.73	0.90	0.95	0.95	0.98	0.83
  Retirement Fund	0.00	0.00	0.00	0.50	0.71	0.71	0.71	0.79	0.79	0.79	0.61	1.16
  Total Authorized Positions	410.39	399.98	367.33	362.65	353.94	348.94	360.18	365.09	362.87	370.87	355.76	362.24

  
  

  Note: See personal complement information on page 16 for more details, including information on the changes in bold print above.

  
  

  FY20 Budget Presentation

  
  

  There are two sets of documents that have been provided to the Town Council and the public. One document contains the program-by-program detail of the General fund and other fund budgets. The other document, which can be found online, contains 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 budget review.

  In addition, the Departments prepared a memorandum that is included in each department section of this document, which describes in detail the major changes for each program.

  To ensure full transparency, relative to the methodology for apportioning health insurance and retirement costs, please note the following:

  

  Executive Summary

  Town of Palm Beach

  

  • 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 FY20 is $10,717.

  • 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 $10,542,818. Legacy plan costs represent $8,992,451 of the total and the costs for the ongoing plan are $1,550,367. The breakdown by active full time employee group as of the most recent actuarial report dated September 30, 2018 is shown below.

    
    

    	FTE	Legacy Plan	Ongoing plan	Total Contribution
    General	164	2,524,579	751,958	3,276,537
    Lifeguard	4	200,830	9,688	210,518
    Police	50	2,830,191	370,590	3,200,781
    Fire-Rescue	57	3,436,851	418,131	3,854,982
    Total	275	8,992,451	1,550,367	10,542,818
    Percent of Total		85.3%	14.7%	100.0%

    
    

    FY19 General Fund Revenues Property Taxes

    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. The Town’s portion of the total millage rate in FY19 was 19.24%. This means for every $100 paid in taxes only $19.24 stays in the Town.

    Below are the taxing districts and the adopted millage rates for FY19 with the total amount of taxes paid to each of the districts by Palm Beach Property owners. The biggest beneficiaries of Town of Palm Beach property owners’ taxes are Palm Beach County and Palm Beach County School District collecting 70.38% of all taxes paid in the Town followed by the Town of Palm Beach at 19.24%.

    
    

    Palm Beach County Schools	6.5720	$ 6,572	40.33%	$113,644,163
    Palm Beach County	4.8980	$ 4,898	30.05%	$84,697,065
    Town of Palm Beach	3.1350	$ 3,135	19.24%	$54,210,963
    Florida Inland Navigation District	0.7261	$ 726	4.46%	$12,555,847
    Children Services Council	0.6403	$ 640	3.93%	$11,072,179
    Health Care District	0.2519	$ 252	1.55%	$4,355,898
    Everglades Construction	0.0417	$ 42	0.26%	$721,084

    Palm Beach County Schools	6.5720	$ 6,572	40.33%	$113,644,163
    Palm Beach County	4.8980	$ 4,898	30.05%	$84,697,065
    Town of Palm Beach	3.1350	$ 3,135	19.24%	$54,210,963
    Florida Inland Navigation District	0.7261	$ 726	4.46%	$12,555,847
    Children Services Council	0.6403	$ 640	3.93%	$11,072,179
    Health Care District	0.2519	$ 252	1.55%	$4,355,898
    Everglades Construction	0.0417	$ 42	0.26%	$721,084

    TAXING DISTRICTS

    
    

    FY19

    Adopted Millage Rates

    
    

    Taxes per Million

    
    

    % of Total

    Total Taxes

    Paid by Palm Beach Property Owners

    
    

    
    

    South Florida Water Management 0.0320 $ 32 0.20% $553,350

    
    

    

    Total 16.2970 $ 16,297 100.00% $281,810,548

    

    Executive Summary

    Town of Palm Beach

    

    The total taxes paid per million of taxable value in the Town in FY19 was $16,297. Of that amount,

    $3,135 stayed in the Town to pay for services and the remaining $13,162 went to other taxing districts. Below is the breakdown by taxing district for a $1 million homesteaded property using the FY19 tax rates.

    
    

    

    FY20 Millage Rate

    Appearing on the following page is a millage rate table that showing the recommended FY20 millage rate versus the FY19 millage. The recommended FY20 millage rate of 3.0681 represents a 2.13% reduction from FY19, which is a $5 per million decrease for homesteaded properties.

    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 proposed millage is 3.23% over the rolled back rate of 2.9720. The rolled-back millage rate would represent a 5.2% decrease in the millage and would provide the homestead property owner a $98 per million reduction in taxes. The rolled-back rate is required to be announced at the public hearings in September.

    

    Executive Summary

    Town of Palm Beach

    

    
    

    
    

    	FY19 Millage Rate	FY20 Millage Rate
    Millage Rate	3.1350	3.0681
    Tax Revenue	$54,210,963	$55,979,439
    Revenue Increase over FY19	n/a	$1,768,476
    Millage % Increase/Decrease vs. FY19	n/a	-2.13%
    Homestead Value Increased by 1.9%	$1,000,000	$1,019,000
    Town Taxes	$2,978	$2,973
    Increase/(Decrease) over FY19	n/a	($5)
    Non Homestead Tax Increase Ave 5.82%	n/a	$115

    There are a number of revenue types in the General Fund, categorized on the table below:

    Revenue	FY2019	FY2020	FY19 vs. FY20 Difference	% Change
    Ad Valorem Taxes	$54,210,963	$55,979,439	$ 1,768,476	3.26%
    Non Ad Valorem Taxes	6,307,000	6,459,000	152,000	2.41%
    Licenses & Permits	10,583,108	10,900,800	317,692	3.00%
    Intergovernmental	1,076,255	1,099,600	23,345	2.17%
    Charges for Services	4,395,558	6,289,199	1,893,641	43.08%
    Fines and Forfeitures	1,171,000	942,000	(229,000)	-19.56%
    Investment Earnings	828,000	1,230,000	402,000	48.55%
    Miscellaneous	435,964	433,728	(2,236)	-0.51%
    Transfers from Enterprise Funds	1,307,160	25,000	(1,282,160)	-98.09%
    Transfers from Equipment Replacement Fund	780,421	-	(780,421)	-100.00%
    Transfers from unassigned fund balance for Contingency and Compensated Absences	1,370,789	1,083,000	(287,789)	-20.99%
    Total Revenues	$82,466,218	$84,441,766	$ 1,975,548	2.40%

    Significant highlights for General Fund FY20 revenues include:

    
    

• Based upon the Property Appraiser's Preliminary Certification issued June 30, 2019, existing property taxable values in the Town have risen 5.82% over the prior year. The total taxable value is $19,205,933,588.

• The Non Ad Valorem tax revenue has increased based on current trends.

• The increase in Licenses and Permits is based on current trends in revenue, but budgeted conservatively.

• Intergovernmental revenue increase is due to slight increases in state shared revenues.

  

  Executive Summary

  Town of Palm Beach

  

• Charges for services include a large increase of $1,893,641. The increase is due to a large increase in special assignment overtime revenue from two new large contracts. A corresponding increase in police special assignment overtime costs is shown in the Police Department budget. Recreation Department fees are increasing due to the anticipated opening of the Recreation Center and the new fees associated with programs and services. Also included are increases in parking meter and parking placard fees. The last time the parking fees were increased was in 2011.

• Fines and forfeiture revenue decreased based on improved compliance and parking enforcement officers assigned to other duties such as traffic control. In addition, staffing shortages in parking control have also contributed to the decrease in revenue.

• The interfund transfers represent a transfer of $25,000 from the Par 3 Golf Course enterprise funds. This amount is $1,282,160 less than the FY19 transfer. In FY19, the Marina and Golf Course were separated into their own enterprise funds and the recreation center and tennis revenues/expenses were transferred to the General Fund. In order to cover the net costs for the first transition year the transfer was increased from the Marina fund to cover the recreation subsidy. In FY20 the transfer reflects only the funding from the Par 3 Golf Course. The Marina will be closing in the spring of 2020 so a transfer has not been included.

• The transfer from the Equipment Replacement Fund in FY19 represented funds that were set aside for beach cleaning equipment that will not be replaced and the savings on the purchase of the quint fire truck totaling $780,421. No transfer is included in the FY20 budget.

  
  

  General Fund Expenditures

  General Fund expenditures have increased by 2.4% from FY19. The details by expenditure category are shown in the table on the following page.

  

  Executive Summary

  Town of Palm Beach

  

  
  

  Expenditure Category	FY2019	FY2020	FY19 vs. FY20 Difference	% Change
  Salary and Wages	$25,800,355	$26,604,601	$ 804,246	3.12%
  Pension Benefits	10,514,497	11,043,453	528,956	5.03%
  Other Employee Benefits	7,094,515	7,183,033	88,518	1.25%
  Contractual	10,000,741	10,682,513	681,772	6.82%
  Commodities	1,775,363	1,753,420	(21,943)	-1.24%
  Depreciation/Capital Outlay	2,404,707	2,422,703	17,996	0.75%
  Subtotal Operating Expenditures	57,590,178	59,689,723	2,099,545	3.65%
  Special Assignment OT	400,000	1,400,000	1,000,000	250.00%
  Library	345,058	352,650	7,592	2.20%
  Transfer to the Risk Insurance Fund	1,898,059	1,900,819	2,760	0.15%
  Transfer to Capital Improvement Program	2,200,000	2,420,000	220,000	10.00%
  Transfer to Underground Utility Fund	135,000	144,450	9,450	7.00%
  Transfer to the Debt Service Fund	5,994,738	5,983,913	(10,825)	-0.18%
  Transfer to Coastal Management Fund	7,349,124	6,520,211	(828,913)	-11.28%
  Extraordinary Transfer to Retirement Fund	5,420,000	5,420,000	-	0.00%
  Additional Contribution for UAAL Amort.	574,061	-	(574,061)	-100.00%
  Contingency	560,000	610,000	50,000	8.93%
  Subtotal Transfers and Contingency	24,876,040	24,752,043	(123,997)	-0.50%
  Total General Fund	$ 82,466,218	$ 84,441,766	$ 1,975,548	2.40%

  
  

  Highlights for General Fund expenditures are as follows:

  
  

  Total operating expenditures increased $2,099,545 or 3.65% from FY19. Total transfers and other expenses decreased $123,997 or .5%.

  
  

  Operating Expenditures:

• Salary and wages increased $804,246 due to the implementation costs of the compensation study which also includes the addition of 3 firefighters.

• The total annual required contribution for the defined benefit plan (DB) and defined contribution (DC) pension benefits increased by a total of $528,956. Defined benefit plan increases were due to assumption changes, including the investment return, and salary growth assumptions and past losses. Defined Contribution costs increased by $10,619 because of the increases in salaries.

• Other employee benefit costs increased by $88,518 or 1.25%. Health insurance costs remained flat due to improved claims performance and fewer employees, FICA tax increased by $179,735 due to the increase in the salary budget. The Longevity/Bonus program decreased by $36,641 due to the phasing out of the longevity program accomplished through retirements. There were also decreases in incentive pay of

  $22,508.

  

  Executive Summary

  Town of Palm Beach

  

• Included in Other Employee Benefits is the Transfer to the OPEB trust. The transfer to the OPEB trust fund decreased by $12,369. In the recent actuarial report, the Town’s funding level was 107.4% funded.

• The increase in contractual costs ($681,772) is due in part to an increase from West Palm Beach for the sewage treatment and disposal costs of $68,745. Other increases include: consulting for code reform $105,000; landscape contracting $123,537; special recreation contracts $58,800; other contracted services $121,198; electric $49,685; water $65,080; hardware $43,015; software maintenance $113,825; bank charges $25,360. These increases are offset by decreases in other contractual line items. The special recreation contracts will be offset by revenues received.

• The decrease in commodities is mostly due to decreases in office and maintenance supplies ($6,537), vehicle maintenance supplies ($15,100), uniforms ($11,347), and training ($6,992).

• Depreciation/Capital outlay costs decreased due to a review of equipment which extended of the useful life ($25,865). This decrease was partially offset by an increase in capital equipment purchases ($55,000).

• The funding for the Four Arts Library increased by 2.2%. Last year we recommended tying the increase to CPI with a cap of 3%. The CPI 12-month change through April for the Miami-Fort Lauderdale-West Palm Beach was 2.2%.

  
  

  Transfers and Other:

  
  

• The additional $1 million in police special assignment overtime is due to two new large contracts, but is more than offset by the increase in revenues.

• The transfer to the Risk Fund remained flat.

• The transfer to the Capital Improvement Fund increased by ($220,000) or 10% over FY19.

• The transfer to the Underground Utility Fund represents the transfer of funds to pay for the Project Manager’s salary and benefits.

• The transfer to the debt service fund decreased by $10,825.

• Coastal funding decreased by $828,913 due to anticipated Federal and State grants.

• The extraordinary transfer to the retirement fund to accelerate improvements to the UAAL remained at $5,420,000.

• The additional contribution for the UAAL amortization was budgeted at $1,440,000 in FY19. The Town Council decided to adopt a hybrid amortization and the balance shown of $574,061 is the savings. The remaining amount was allocated to each department based on the increased cost of the amortization.

• Contingency is funded at 1% of operating expenditures. Absent extraordinary unforeseen circumstances, this amount should be enough to cover unexpected expenditures.

Executive Summary

Town of Palm Beach

Funding By Department

The three largest departments, Police, Fire-Rescue and Public Works, account for over 55% of the Town budget. The transfers mentioned above account for another 28% for a total of 83% of the total Town budget. All other general government and administrative departments make up the balance of 17%. The chart below provides a graphic example of expenditures by each department and transfer.

Executive Summary

Town of Palm Beach

How each $1,000 of Town Property Tax Revenue is spent

Fund Balance

The General Fund Unassigned Fund Balance as of September 30, 2018 was $23,063,128. This amount was $6,548,855 above the policy required minimum. The FY20 budget includes a transfer of $610,000 from fund balance to fund the contingency reserve and $473,000 from the reserve for compensated absences to fund the compensated absence payouts. After the contingency transfer, the remaining balance in the unassigned fund balances will be $5,938,855. Staff recommended and the Town Council approved a transfer of $2,641,699 from this reserve to fund the increase to the UAAL as a result of the compensation increases for all town employees and the pension changes for police and firefighters.

Based on results thus far for FY19, we expect to add an estimated surplus of approximately $5 million to the unassigned fund balance at FY19 year end. This surplus is the result of many vacant positions that have not been filled and higher than anticipated revenues for building and other permits. If we experience a storm event or other unforeseen expenditures, this amount will decrease.

Personnel Complement

The Total FTE includes full time employees and part time no benefits employees (PTNB). The total personnel complement (for all funds Townwide) for FY20 is 362.24 full-time equivalent personnel (FTE), which is a net increase of 6.48 FTE from the adopted FY19 budget. Currently, 18 positions have been frozen to be further studied, reclassified or eliminated, of these 18, 2 have been eliminated in the FY20 budget in addition to other reductions that have been made throughout the year. A chart of the FTE by department is shown below with a two year history. The chart

Executive Summary

Town of Palm Beach

shows full time employees which decreased by 1.0 FTE and PTNB staffing which increased by 7.48 FTE (mostly due to increased staffing at the Recreation Center which was closed for FY19). The FTE history going back to FY09 can be found earlier in this summary. The changes in the FTE for both full time and part time staffing are described in detail after the table.

Executive Summary

Town of Palm Beach

The increase of 6.48 FTEs in FY20 made up of the following additions and reductions and other small reallocations across programs:

Position changes:

• Addition of 3 firefighters to restore the Kelly Day

• 1 FTE reduction in Planning Zoning and Building with the elimination of the Zoning Tech position

• 3 FTE reduction in Public Works including the elimination of the Street/Sign painter, the Project Engineer and Electrician Supervisor

• .87 FTE reduction at Town Docks

• .51 FTE reduction at the Par 3 golf course for a part time position replaced with a contractual employee.

• 8.34 FTE increase in part time no benefit positions to staff the 7 day a week operations at the new recreation center and tennis center. The Recreation Department in FY19 had cut back on staff due to the closing of the recreation center for construction. Once the new recreation center is open in late 2019, the Recreation Department will need to be at full staffing to accommodate the additional services offered in the new center.

• .35 FTE increase for a part time vehicle technician in the Police Department to cover for the frozen master mechanic position and replace the contractual car wash contract.

• Increase of .55 allocated to the Retirement Fund for increased role of Town for the administration of the Retirement system and DC plan due to the retirement of the Plan Administrator, Bill Hanes.

  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 FY20, we expect to complete Phase 2 North, continue construction of Phases 2 South and 3 North and begin construction of Phase 3 South of the project. Engineering design is underway for Phases 4 and 5 of the project.

  

  Executive Summary

  Town of Palm Beach

  

  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

  In the fall of 2018, the Town issued $56,040,000 in General Obligation bonds for the Townwide Undergrounding project.

  
  

  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%.

  
  

  Outstanding Year Principal Balance Issued September 30, 2019 Purpose
  2010A	$5,870,000	Remaining Balance on First Phase of ACIP Debt
  2010B	$330,000	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	$50,640,000	Second Phase of ACIP, Bondable Coastal, and Par 3 Clubhouse
  2018	$55,350,000	General Obligation Bonds for Townwide Undergrounding Project
  Total	$161,765,000

  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.

  The Town’s outstanding Revenue Bond debt as of September 30, 2019 is shown on the table below:

  
  

  As of September 30, 2019, the Town’s net bonded debt will amount to 16.9% of the legal limit of

  $958,601,472 (5% of preliminary FY20 taxable value of $19,172,029,433).

  The 2016A and 2013 Series Revenue Bonds debt service is funded from non-ad valorem revenues. A portion of each ($199,813) is funded through the Recreation Enterprise Fund for the Town’s portion of the Par 3 golf course and clubhouse renovation, and a portion is funded through the

  

  Executive Summary

  Town of Palm Beach

  

  Coastal Management Fund ($544,107). The non-ad valorem revenue transfer from the General Fund for FY19 is $5,983,913.

  The 2016B Series Revenue Bonds debt service appropriation of $708,600 is funded through non ad valorem assessments on the property owners within the Worth Avenue Assessment District.

  The Town has issued General Obligation bonds for the Underground Utility Project. These bonds shall be payable first from the Underground Utility Project special assessments and, to the extent the assessments are insufficient to pay debt service or not assessed, ad valorem taxes will be levied and collected on all taxable property in the Town to pay principal and interest on the bonds as they become due and payable. Total debt service for FY20 on these bonds will be $3,398,350.

  Capital Improvement Funds (307, 309, 311, 314)

  For FY20, the following items totaling $6,435,000 are included in the Capital Improvement Fund (307):

  • Pavement Management - $1,000,000

  • Drainage Improvements - $1,300,000

  • Sanitary Sewage System Improvements - $1,715,000

  • Water main improvements (WPB) - $800,000 (Funded by West Palm Beach)

  • Landfill site maintenance - $30,000

  • Facility improvements - $1,590,000

The transfer to the Capital Improvement Fund has increased by $220,000.

Bonds funds in the ACIP II fund are projected to be fully used before the end of the current fiscal year.

Coastal Management

The Coastal Management Fund (309) is used in part to fund the construction costs of the coastal projects. The details of the FY20 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 and to include the Mid-town seawall and groins in the Mid- town beach area. The transfer to the Coastal Management Fund decreased $828,913 to

$6,520,211.

Executive Summary

Town of Palm Beach Enterprise Funds (401, 402) Marina

Marina revenues are expected to decrease in FY20, as renovation of the marina is scheduled to begin in May of 2020. However, for the upcoming season, there are strategically proposed increases for several fees. A modified annual lease (December 1, 2019, to April 30, 2020) is approximately 55% of the originally proposed FY20 annual rate; with winter daily and winter monthly single-phase slip fees all proposed to increase by 5%. For three-phase slips, a modified annual (December 1, 2019, to April 30, 2020) is also approximately 55% of the originally proposed FY20 annual rate; winter daily and winter monthly rates are proposed to increase for these slips to be competitive with Palm Harbor (generally the highest market in the immediate area). Forecasts for FY20 anticipate that the Marina will realize a gross operating profit of $1,249,024, and a net profit of $487,895 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 FY18 totaled $2,587,882. In FY18, $1,700,000 was expended from this reserve to fund the engineering and permitting costs of the project. We expect the FY2019 ending balance to be approximately

$3,647,882. We have also been approved for a FIND grant for up to $325,000 for the Town Docks project. These funds will be added to the reserve balance once they are received. We are applying for additional grants from FIND for this project which will further add to funding available for the project.

Par 3 Golf Course

Golf Course revenues are projected to increase during FY20, if Town Council approves the various fee increase recommendations, as you traditionally do each year. Recommendations for fee changes for FY20 include increases to multiple green fees and passes to strategically capitalize on participation at our unique facility, create peak usage and maximum revenue. It is probable that these fee adjustments would generate over $35,000 in additional revenue. The Par 3 Golf Course anticipates a gross profit of $681,207 in FY20 before depreciation, equipment replacement purchases, depreciation on the clubhouse and golf course ($306,613), capital expenses, debt service, contingency and the transfer to the general fund. After these expenses the Par 3 Golf course will reflect a net loss of $46,134. The loss is due to the depreciation on recent asset acquisitions including additional golf carts which may result in additional income that could offset a portion of the anticipated loss.

Executive Summary

Town of Palm Beach

Internal Service Funds (501, 502, 320)

The transfer to the Risk Fund (501) has remained flat from FY19 to FY20.

The Health Insurance Fund (502) transfer has also remained flat due to favorable claims experience and fewer employees in the plan.

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.

During the year, staff completed a thorough review of Town assets. The Town Manager also approved an increase in the capital asset thresholds from $2,500 to $5,000 for capital equipment and $1,500 to $3,000 for computer equipment. The review and threshold increase created excess reserves in this fund of $990,760 and improved efficiency by reducing the number of small assets that are tracked. Staff may propose to use a portion of these funds to improve technology in the Planning, Zoning and Building Department.

Trust Funds (600 & 610)

Retirement (600)

The FY20 actuarially determined contribution to the DB plan totals $10,542,818. The total contribution for FY20 includes an additional $197,600 for the improvements made to the police and firefighter pension plans as a result of the compensation study. The amounts by employee group are shown on the following page versus the FY19 contribution.

Town DB and DC Retirement Contributions

The historical 10 year trend in Town actuarially determined employer contributions (ADEC) for the defined benefit pensions are shown on the chart on the following page.

Executive Summary

Town of Palm Beach

The 10-year trend for employee contributions is shown below:

Based on 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 table on the following page:

Executive Summary

Town of Palm Beach

Employer Defined Contribution Funding

The Employer Defined Contribution trend since inception in 2012 is shown below. Police and firefighters no longer contribute to the DC plan and are in a DB plan only.

Health Insurance (OPEB) Trust (610)

The actuarially determined transfer to the OPEB trust from the General Fund in the FY20 budget is $423,916. This amount is $12,369 less than FY19. The Investment Advisory Committee recommended lowering the investment return assumption from 6.5% to 6.0%. The amount included in the budget represents the 6% return assumption. The funded ratio in the actuarial report was 107.4% for the 6% assumption. The new actuary for this plan prepared estimates at 6.5%, 6% and 5.75%. The actuary also reviewed the amortization period used in the prior report. The actuary recommended that we reduce the amortization period from 15 years to 5 years. Typically longer amortization periods are chosen for underfunded plans, since the OPEB Trust is over funded, a shorter amortization period is preferred. As you will recall, the Investment Advisory Committee recommended lowering the investment return assumption from 7% to 6.5% in FY19. Since the updated actuarial results show the plan overfunded, the Investment Advisory Committee is recommended an additional decrease in the return assumption to 6%. They also considered lowering it to 5.75% but it would have added $302,811 to the annual cost and reduced

Executive Summary

Town of Palm Beach

the funded ratio to 103.5%. They plan to review the assumption each year to determine if lowering the rate is in the best interest of the town.

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.

Proposed Millage Rate and Budget Resolutions

Resolution No. 70-2019 adopting the proposed millage rate of 3.0681 is included in the backup. Resolution No. 79-2019 adopting the tentative budgets for FY20 is included in the backup.

Long-Term Financial Plan

The Long-Term Financial Plan (LTFP) has been updated with the FY19 adopted budget and the FY20 proposed budget. The entire document including the trend analysis, forecast and other funds trends and forecast can be found on the Town’s website and a copy is included in the backup materials.

The forecast is summarized below. We prepared a forecast calculation for property tax revenue for two separate scenarios.

1. Property tax revenue was increased by 3.25% per year as has been done in the past. The results are shown in the first table. This forecast produces deficits for each year but the final three years of the forecast. In FY20 and FY21, due to construction on the new marina, we eliminated the revenue transferred to the General Fund. In addition, pension costs will include the last year of the 2015 losses and the additional costs from the increases related to the compensation study. The forecast below has improved since July due to the additional revenue related to the adopted parking meter and placard fees and the additional reduction in the transfer from the coastal fund.

   
   

   	FY21	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29
   Revenues	86,917,539	89,968,008	92,382,251	94,884,059	97,436,667	100,124,501	102,892,108	105,832,848	108,710,513
   Expenditures	88,242,068	90,952,565	92,537,265	94,925,415	97,924,391	100,492,373	102,578,507	104,290,029	106,818,006
   Surplus/(Deficit)	(1,324,529)	(984,557)	(155,015)	(41,357)	(487,724)	(367,872)	313,601	1,542,819	1,892,507

   
   

2. The second chart on the next page uses property tax to balance the forecast. If this option were used, the FY21 budget would contain a property tax revenue increase of 5.62%. Using

   

   Executive Summary

   Town of Palm Beach

   

   the FY20 taxable value increase (5.63%) applied in FY21, the corresponding millage rate would decrease by .01% and would result in a $58 increase per million of taxable value. It is far too early in the process to predict what the property tax increase will be for FY21. In addition, since the loss of Marina revenue is a one-time occurrence, General Fund reserves or coastal reserves could be used to offset the loss and make up part of the deficit and thus bridge the gap until Marina and ground lease revenues are available.

   
   

   	FY21	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29
   Revenues	88,242,068	90,952,565	92,537,265	94,925,416	97,924,391	100,492,373	102,578,507	104,290,028	106,818,005
   Expenditures	88,242,068	90,952,565	92,537,265	94,925,415	97,924,391	100,492,373	102,578,507	104,290,028	106,818,005
   % Tax Increase	5.62%	2.60%	1.83%	3.06%	3.95%	3.04%	2.23%	1.50%	2.83%

   
   

   Upcoming Meeting Schedule

   
   

   The State mandated schedule requires that two public hearings be held in September to provide for the final adoption of the Town’s FY20 budget and millage rate. The second public hearing meeting date is as follows:

   
   

   • Second Public Hearing – September 18, 2019 at 5:01pm

Conclusion

This concludes the executive summary portion of the FY20 proposed budget. Please see the documents provided in July for detailed information about the FY20 budget. Staff will be prepared to answer any questions you may have.

Respectfully Submitted,

Kirk Blouin Town Manager

cc: Jay Boodheshwar, Deputy Town Manager Department Directors

Town of Palm Beach, Florida General Fund Revenues and Expenditures

Budget Comparison Fiscal Years 2019 - 2020

RESOLUTION NO. 70-2019

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, PALM BEACH COUNTY, FLORIDA, ADOPTING THE PROPOSED MILLAGE RATE NECESSARY TO FUND THE TENTATIVE GENERAL (OPERATING) FUND BUDGET FOR THE 2019 - 2020 FISCAL YEAR.

WHEREAS, Section 200.065, Florida Statutes, requires among other things that the Town Council of the Town of Palm Beach adopt a proposed millage rate necessary to fund the tentative General (Operating) Fund Budget after notice and public hearing, prior to adopting final millage rate or final budget; and

WHEREAS, the Town Council has conducted a public hearing on the tentative General (Operating) Fund proposed millage rate and budget as required by law.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, PALM BEACH COUNTY, FLORIDA, as follows:

Section 1. The Town Council of the Town of Palm Beach hereby adopts the following

proposed ad valorem tax millage rate as being necessary to fund a tentative budget for the Fiscal Year beginning October 1, 2019, and ending September 30, 2020:

1) The millage rate for nonexempt taxable property within the Town of Palm Beach shall be 3.0681 mills for operational purposes.

Resolution No. 70‐2019 Page 1 of 2

Section 2. The following information is set forth as required by Section 200.065 (2) (d),

Florida Statutes:

The millage rate levied herein is 3.23% more than the “rolled-back rate” of 2.972 mills.

Section 3. The proposed millage rate adopted herein shall be subject to review and re-

computation by the Town Council of the Town of Palm Beach prior to or at the time of adoption of the final budget for the Town following a public hearing to be conducted at 5:01 P.M., Wednesday, September 18, 2019, in the Town Council Chambers, 360 South County Road, Palm Beach, Florida.

PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town of Palm Beach assembled this 10th day of September 2019.

Gail L. Coniglio, Mayor

ATTEST:

Kathleen Dominguez, Town Clerk

Resolution No. 70‐2019 Page 2 of 2

TOWN OF PALM BEACH

Information for Special Town Council Meeting on: September 10, 2019

TO: Mayor and Town Council

VIA: Kirk W. Blouin, Town Manager

FROM: H. Paul Brazil, P.E., Director of Public Works

RE: Non-Ad Valorem Assessment Rates for Commercial Solid Waste Collection - Adoption of Assessment Roll and Service Assessments for FY2020

Resolution No. 71-2019

DATE: August 14, 2019

STAFF RECOMMENDATION

Town staff recommends Town Council adopt Resolution No. 71-2019, which is the Annual Assessment Rate Resolution for the proposed Non-Ad Valorem Service Assessments for the Commercial Solid Waste Collection rates in FY2020.

GENERAL INFORMATION

The Non-Ad Valorem Assessment process that causes special assessments implemented by the Town to appear on a property owner’s property tax bill, dovetails with the statewide budget and millage rate adoption schedule. Accordingly, it is time to begin the final steps of implementing the FY2020 proposed service assessments for the collection of commercial solid waste that will appear on a property owner’s tax bill mailed on or about November 1. By adopting Resolution No. 71-2019, you will be concluding a process whereby each affected property owner was advised of the amount of their proposed service assessment and the date, time, and place of this public hearing to adopt the final assessment and associated assessment roll on the Property Appraiser’s TRIM notice issued in late August of this year and by letter from the Town in late August.

The Commercial Solid Waste Collection Non-Ad Valorem Assessment for FY2020 uses a rate analysis methodology by the Town using the Palm Beach County Solid Waste Authority’s reporting and is calculated as follows:

To employ a defendable assessment methodology to ensure that property owners are only paying costs in proportion to the benefits they derive from the services or costs related to the services, we use the methodology developed in 2003 which was previously found by the Town Council to provide benefits from the services that were/are in proportion to the assessments to be allocated to each benefitted property and that the apportionment of the special benefits to each benefitted property is fair and reasonable.

In order to place assessments on the property tax bill, which virtually assures that the Town will receive payment and avoid having to create an internal billing and collection function, a number of steps are required to be taken in coordination with the Tax Collector and Property Appraiser. The Tax Collector charges a fee for the work they undertake on the Town’s behalf that is one percent (1%) of the value of the assessments. These costs are passed on to a property owner being assessed. In addition, since a property owner can receive a f o u r percent (4%) discount for early payment of their property tax bill in November of each year, the assessments have to be adjusted upward by like amount to ensure the sum needed to pay expenses is realized in full. All totaled, for every $100 in assessments the Town needs to collect, the assessment will be approximately $105 in order to net the $100 needed.

The additional five percent (5%) is attributable as follows:

• Tax Collector – 1%

• Potential early property tax bill payment discount – 4%

• Total – 5%

  
  

  The Town's proposed FY2020 net assessment of $789,905 is derived by reducing the required gross total assessment of $826,978 by these factors.

  
  

  Resolution No. 71-2019 implements the intended assessments for FY2020. The Resolution, among other things:

  
  

• References the properties to be assessed;

• References past Town Council actions to properly effectuate Commercial Solid Waste Collection Assessments;

• Adopts the updated assessment roll for the fiscal year commencing on October 1, 2019;

• Reimposes the assessments;

• Provides for Proof of Publication;

• If applicable, provides an executed Affidavit of Mailing executed by staff;

• Provides a Certificate to Non-Ad Valorem Assessment Roll for the Mayor to sign and be transmitted to the Tax Collector of Palm Beach County.

Non-Ad Valorem Assessment rates for the commercial solid waste collection services are as follows:

FUNDING/FISCAL IMPACT

This is a “zero-sum” initiative, in that revenues are intended to balance/offset the costs. It is anticipated that this action will provide and generate the requisite funding. All direct costs borne by the Town to accomplish this service are paid for by the properties benefitting, as opposed to all property owners in Town.

TOWN ATTORNEY REVIEW

This format has been utilized by the Town in previous recommendations and was approved by the Town Attorney. This Resolution was prepared in a format consistent with that developed by the law firm of Nabors, Giblin, and Nickerson, which previously prepared the Town’s ordinances that established Chapter 90 of the Town Code pertaining to special assessments.

Attachment

cc: Jane Le Clainche, Director of Finance

Eric B. Brown, P.E., Assistant Director of Public Works John C. Randolph, Town Attorney

Chester Purves, Services Division Manager Dean Mealy, Purchasing Manager

RESOLUTION NO. 71-2019

A RESOLUTION OF TOWN COUNCIL OF THE TOWN OF PALM BEACH, PALM BEACH COUNTY, FLORIDA, RELATING TO THE COLLECTION AND DISPOSAL OF COMMERCIAL SOLID WASTE; ESTABLISHING THE SOLID WASTE COST AND RATE OF ASSESSMENT; IMPOSING SOLID WASTE SERVICE ASSESSMENTS AGAINST CERTAIN ASSESSED PROPERTY LOCATED WITHIN THE TOWN OF PALM BEACH; APPROVING THE UPDATED SOLID WASTE ASSESSMENT ROLL; CONFIRMING THE PRELIMINARY RATE RESOLUTION; PROVIDING SEVERABILITY AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, Chapter 90 of the Town of Palm Beach Code of Ordinances (the "Code") authorizes the imposition of annual Solid Waste Service Assessments for Solid Waste collection and disposal services, facilities or programs against certain Assessed Property throughout the Town;

WHEREAS, the imposition of a Solid Waste Service Assessment for Solid Waste collection and disposal services, facilities or programs for each Fiscal Year is an equitable and efficient method of allocating and apportioning Solid Waste Cost among parcels of Assessed Property;

WHEREAS, the Town Council desires to impose an assessment program for Solid Waste collection and disposal services, facilities or programs throughout the Town using the tax bill collection method for the Fiscal Year beginning on October 1, 2019;

WHEREAS, the Town Council, on July 11, 2019, adopted Resolution No. 56-2019 (the

Preliminary Rate Resolution), containing a brief and general description of the Solid Waste collection and disposal services, facilities or programs to be provided to Assessed Property, describing the method of apportioning the Solid Waste Cost to compute the Solid Waste Service Assessment for Solid Waste collection and disposal services, facilities or programs against

Apartments and Commercial Property, designating a rate of assessment, and directing preparation of the Assessment Roll and provision of the notice required by the Code;

WHEREAS, pursuant to the provisions of the Code, the Town Council is required to confirm or repeal the Preliminary Rate Resolution, with such amendments as the Town Council deems appropriate, after hearing comments and objections of all interested parties;

WHEREAS, the Assessment Roll has heretofore been made available for inspection by the public, as required by the Code;

WHEREAS, notice of a public hearing has been published and, as required by the terms of the Code, mailed to each Owner of Apartments and Commercial Property proposed to be assessed notifying such Owners of their opportunity to be heard; an affidavit regarding the notice mailed to each Owner of Apartments and Commercial Property being attached hereto as Appendix A and the proof of publication being attached hereto as Appendix B; and

WHEREAS, a public hearing was held on September 10, 2019, and comments and objections of all interested persons have been heard and considered as required by the terms of the Code;

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, FLORIDA, AS FOLLOWS:

SECTION 1. AUTHORITY. This resolution is adopted pursuant to the provisions of the Code; the Initial Assessment Resolution (Resolution No. 25-03); the Final Assessment Resolution (Resolution No. 44-03); the Preliminary Rate Resolution; Article VIII, Section 2, Florida Constitution; the Town of Palm Beach Charter; Chapter 166, Florida Statutes; and other applicable provisions of law.

SECTION 2. DEFINITIONS AND INTERPRETATION.

1. This resolution constitutes the Annual Rate Resolution as defined in the Code.

   
   

2. All capitalized terms in this resolution shall have the meanings defined in the Code, Section 102-1 of the Town of Palm Beach Code of Ordinances, the Initial Assessment Resolution, the Final Assessment Resolution, and the Preliminary Rate Resolution No. 107-2017.

SECTION 3. IMPOSITION OF SOLID WASTE SERVICE ASSESSMENTS.

1. The parcels of Assessed Property described in the Solid Waste Assessment Roll, which is hereby approved, are hereby found to be specially benefited by the provision of Solid Waste collection and disposal services, facilities or programs described in the Preliminary Rate Resolution, in the amount of the Solid Waste Service Assessment set forth in the Solid Waste Assessment Roll, a copy of which was present at the above referenced public hearing and is incorporated herein by reference. Additionally, the Assessment Roll, as approved, includes those Tax Parcels of Assessed Property that cannot be set forth in that Assessment Roll due to the provisions of Chapter 2019-12, Laws of Florida, concerning exempt “home addresses” under Section 119.071(d), Florida Statutes.

2. It is hereby ascertained, determined and declared that each parcel of Assessed Property within the Town of Palm Beach will be benefited by the Town's provision of Solid Waste collection and disposal services, facilities or programs in an amount not less than the Solid Waste Service Assessment for such parcel, computed in the manner set forth in this Resolution. Adoption of this Final Assessment Resolution constitutes a legislative determination that all parcels assessed derive a special benefit, as set forth in the Code, the Initial Assessment Resolution, the Final Assessment Resolution, and the Preliminary Rate Resolution from the Solid Waste collection and disposal services, facilities or programs to be provided and a legislative determination that the Solid

   Waste Service Assessments are fairly and reasonably apportioned among the Apartments and Commercial Property that receive the special benefit as set forth in the Preliminary Rate Resolution.

3. The method for computing Solid Waste Service Assessments described in the Preliminary Rate Resolution is hereby approved.

4. For the Fiscal Year beginning October 1, 2019, the Solid Waste Cost to be assessed is

   
   

   $826,978, with $114,192 allocated to Apartments and $712,756 allocated to Commercial Property. The Solid Waste Service Assessments to be assessed and apportioned among the Assessed Property to generate the Solid Waste Cost for the Fiscal Year beginning October 1, 2019 to fund Solid Waste collection and disposal services, facilities, and programs are hereby established as follows:

   Property and Service Type	Annual Assessment Rate	Billing Unit
   Apartments	$155.83	Per Dwelling Unit
   Commercial Property – 5 Day Service
   Low Volume	$0.030	Per Square Foot
   Medium Volume	$0.197	Per Square Foot
   High Volume	$0.864	Per Square Foot
   Commercial Property – 7 Day Service
   Low Volume	$0.035	Per Square Foot
   Medium Volume	$0.235	Per Square Foot
   High Volume	$1.031	Per Square Foot

   
   

5. Solid Waste Service Assessments for Solid Waste collection and disposal services, facilities or programs in the amounts set forth herein are hereby levied and imposed on all parcels of Assessed Property described in the Assessment Roll for the Fiscal Year beginning October 1, 2019. Additionally, even though they may not be shown in the Assessment Roll due to the provisions of Chapter 2019-12, Laws of Florida, Solid Waste Service Assessments are hereby levied and imposed on all Tax Parcels of Assessed Property with exempt “home addresses” pursuant to Section 119.071(d), Florida Statutes.

6. Any shortfall in the expected Solid Waste Service Assessment proceeds due to any reduction or exemption from payment of the Solid Waste Service Assessments required by law or authorized by the Town Council shall be supplemented by any legally available funds, or combination of such funds, and shall not be paid for by proceeds or funds derived from the Solid Waste Service Assessments.

7. As authorized in Section 90-69 of the Code, interim Solid Waste Service Assessments are also levied and imposed against all Apartments and Commercial Property for which a Building Permit is issued after adoption of this Annual Rate Resolution based upon the rates of assessment approved herein.

8. Solid Waste Service Assessments shall constitute a lien upon the Assessed Property so assessed equal in rank and dignity with the liens of all state, county, district or municipal taxes and other non-ad valorem assessments. Except as otherwise provided by law, such lien shall be superior in dignity to all other liens, titles and claims, until paid.

9. The Solid Waste Assessment Roll shall be delivered to the Tax Collector for collection using the tax bill collection method in the manner prescribed by the Ordinance. The Solid Waste Assessment Roll, as delivered to the Tax Collector, shall be accompanied by a Certificate to Non-Ad Valorem Assessment Roll in substantially the form attached hereto as Appendix C.

SECTION 4. CONFIRMATION OF PRELIMINARY RATE RESOLUTION. The

Preliminary Rate Resolution is hereby ratified and confirmed.

SECTION 5. EFFECT OF ADOPTION OF RESOLUTION. The adoption of this

Annual Rate Resolution shall be the final adjudication of the issues presented herein (including, but not limited to, the method of apportionment, the rate of assessment, the updated Assessment Roll and the levy and lien of the Solid Waste Service Assessments for Solid Waste collection and

disposal services, facilities or programs) unless proper steps shall be initiated in a court of competent jurisdiction to secure relief within 20 days from the date of this Annual Rate Resolution.

SECTION 6. SEVERABILITY. If any clause, section or provision of this Resolution shall be declared unconstitutional or invalid for any reason or cause, the remaining portion of said Resolution shall remain in full force and effect and be valid as if such invalid portion thereof had not been incorporated herein.

SECTION 7. EFFECTIVE DATE. This resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town of Palm Beach assembled this 10th day of September, 2019.

Gail L. Coniglio, Mayor

ATTEST:

Kathleen Dominguez, Town Clerk

APPENDIX A

AFFIDAVIT REGARDING NOTICE MAILED TO PROPERTY OWNERS

AFFIDAVIT OF MAILING

BEFORE ME, the undersigned authority, personally appeared H. Paul Brazil, who, after being duly sworn, depose and say:

1. I, H. Paul Brazil, P.E., as the Director of the Public Works Department of the Town of Palm Beach ("Town"), have been directed by the Town Council, to mail or cause to be mailed the notices required by Section 10 of Resolution No. 56-2019 and Section 90-65 of the Town of Palm Beach Code.

2. In accordance with Section 10 of Resolution No. 56-2019 and Section 90-65 of the Town of Palm Beach Code, I have caused such individual notices for each affected property owner to be prepared and each notice included the following information: the purpose of the assessment; the total amount proposed to be levied against each parcel; the unit of measurement to be applied against each parcel to determine the assessment; the number of such units contained within each parcel; the total revenue the Town expects to collect by the assessment; a statement that failure to pay the assessment will cause a tax certificate to be issued against the property which may result in a loss of title; a statement that all affected property owners have a right to appear at the hearing and to file written objections with the local governing board within 20 days of the notice; and the date, time, and place of the hearing.

3. On or before August 20, 2019, I mailed, or directed the mailing of, said notices by first class mail to each owner of property within the Town that is included on the Assessment Roll at the address then shown on the real property assessment tax roll maintained by the Palm Beach County Property Appraiser for the purpose of the levy and collection of ad valorem taxes.

   
   

   A-1

   
   

   
   

4. Additiona lly, in accordance with Chapter 92-264, Laws of Florida, I timely provided the information detailed in paragraph 2. above concerning the assessments to the Palm Beach County Property Appraiser for inclusion as a part of the notice of proposed property taxes under Section 200.069 , Florida Statutes, the truth-in-millage notification.

FURTHER AFFIANT SAYETH NOT.

_:::::::

zil\:i ., Director of

STATE OF FLORIDA COUNTY OF PALM BEACH

The foregoing Affidavit of Mailing was sworn to and subscribed before me this {).(p-11,day of August , 2019 b H. Paul Brazil, P.E., Public Works Director, Town of Palm Beach, Florida.

e is ersonall known to me r has produced _ .......-::::::=s identification and did take an oath.

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. · . JENWER D. BELL

MY COMMISSION# FF9279'9 EXPIRES Odober 15. 2019

. · . JENWER D. BELL

MY COMMISSION# FF9279'9 EXPIRES Odober 15. 2019

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APPENDIX B PROOF OF PUBLICATION

The Palm Beach Post

Palm Beach Daily News idea.bar

PROOF OF PUBLICATION

STATE OF FLORIDA

PUBLIC NOTICE

Before the undersigned authority, personally appeared Teal Pontarelli, who on oath, says that he/she is a Legal Advertising Representative of The Palm Beach Post, a daily and Sunday newspaper, published in West Palm Beach and distributed in Palm Beach County , Martin County, and St. Lucie County, Florida ; that the attached copy of advertising for a P-Main Legal ROP was published in said newspaper on: first date of Publication 08/20/2019 and last date of Publication 08/20/2019. Affiant further says that the said The Palm Beach Post is a newspaper published in West Palm Beach, in said Palm Beach County, Florida and that the said newspaper has heretofore been continuously published in said Palm Beach County, Florida, daily and Sunday and has been entered as second class mail matter at the post office in West Palm Beach, in said Palm Beach County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he/she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in said newspaper.

PALM BEACH, TOWN OF PO BOX 2029

PALM BEACH, FL 33480-2029

$700.00

,

Signed

Please see Ad on following page(s).

Page 1 of 3

PALM BEACH TOWN OF PO BOX 2029

PALM BEACH. FL 33480-2029

Invoice/Order Number:

Ad Cost:

Paid: Balance Due:

0000505785

$700.00

$0.00

$700.00

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APPENDIX C

FORM OF CERTIFICATE TO

NON-AD VALOREM ASSESSMENT ROLL

C-1

CERTIFICATE TO

NON-AD VALOREM ASSESSMENT ROLL

DR-408A N. 02/91

I, the undersigned, hereby certify that I am the Chairman of the Board, or authorized

agent of Town of Palm Beach , located in Palm Beach County,

Florida; as such, I have satisfied myself that all property included or includable on the Non-Ad Valorem Assessment Roll for the aforesaid county is properly assessed so far as I have been able to ascertain; and that all required extensions on the above described roll to show the non-ad valorem assessments attributable to the property listed therein have been made pursuant to law.

I further certify that, upon completion of this certificate and the attachment of same to the herein described Non-Ad Valorem Assessment Roll as part thereof, said Non-Ad Valorem Assessment Roll will be delivered to the Tax Collector of this county.

In witness whereof, I have subscribed this certificate and caused the same to be attached to and made a part of the above described Non-Ad Valorem Assessment Roll

this the

10th

day of

September ,

2019 .

year

Chairman of the Board or authorized agent

of Town of Palm Beach

Name of local government

Palm BeachCounty, Florida

TOWN OF PALM BEACH

Information for Special Town Council Meeting on: September 10, 2019

To: Mayor and Town Council Via: Kirk Blouin, Town Manager

From: Jane Le Clainche, Director of Finance

Re: Worth Avenue Commercial District Assessment Area – Adoption of Assessment Roll and Improvement and Maintenance Assessments for FY 2020

Resolution No. 72-2019

Date: August 29, 2019

STAFF RECOMMENDATION

Staff recommends Town Council adopt Resolution No. 72-2019, which is the Annual Rate Resolution for the proposed improvement (debt service) and maintenance assessments for the Worth Avenue Commercial District Assessment Area in FY2020.

GENERAL INFORMATION

The non-ad valorem assessment process that causes special assessments implemented by the Town to appear on a property owner’s property tax bill dovetails with the statewide budget and millage rate adoption schedule. Accordingly, it is time to begin the final steps of implementing the FY2020 proposed capital and maintenance assessments for the Worth Avenue Commercial District Assessment Area that will appear on a property owner’s tax bill mailed on or about November 1. By adopting Resolution No. 72-2019 you will be concluding a process whereby each affected property owner was advised of the amount of their proposed improvement and maintenance assessments and the date, time, and place of this public hearing to adopt the final assessment and associated assessment roll on the Property Appraiser’s TRIM notice issued in August of this year and by letter from the Town issued in mid-August of this year.

The Worth Avenue Commercial District net improvement and maintenance assessment for FY2020 has been calculated as follows:

To employ a defendable assessment methodology to ensure that property owners are only paying costs in proportion to the benefits they derive from the improvements or costs related to the improvements, we again used the methodology developed in 2010 by Special District Services which was previously found by the Town Council to provide benefits from the improvements that were/are in proportion to the assessments to be allocated to each benefitted property and that the apportionment of the special benefits to each benefitted property is fair and reasonable.

In order to place assessments on the property tax bill, which virtually assures that the Town will receive payment and avoid having to create an internal billing and collection function, a number of steps are required to be taken in coordination with the Tax Collector and Property Appraiser. The Tax Collector charges a fee for the work they undertake on the Town’s behalf that is 1% of the value of the assessments. The Property Appraiser fee for FY2020 is $150.00, which has been included as shown above. These costs are passed on to a property owner being assessed. In addition, since a property owner can receive a 4% discount for early payment of their property tax bill in November of each year, the assessments have to be adjusted upward by like amount to ensure the sum needed to pay expenses is realized in full. All totaled, for every $100 in assessments the Town needs to collect, the assessment will be approximately $105 in order to net the $100 needed.

The additional 5 percent is attributable as follows:

• Tax Collector – 1%

• Potential early property tax bill payment discount – 4%

• Total – 5%

  
  

  After adding these multipliers to the Town's proposed FY2020 net assessment of $972,918.00 and incorporating the accumulated rounding adjustment of $38.88, the gross total assessment is $1,021,604.79.

  
  

  Resolution No. 72-2019 implements the intended Worth Avenue Commercial District Area assessments for FY2020. The resolution, among other things:

  • references the property to be assessed;

  • references past Town Council actions to properly effectuate Worth Avenue assessments;

  • adopts the updated assessment roll for the fiscal year commencing on October 1, 2019;

  • reimposes the assessments;

  • provides for Proof of Publication;

  • if applicable, provides an executed Affidavit of Mailing executed by staff;

  • provides a Certificate to Non-Ad Valorem Assessment Roll for the Mayor to sign and be transmitted to the Tax Collector of Palm Beach County.

FUNDING/FISCAL IMPACT

All direct costs borne by the Town to accomplish this project are paid for by the properties benefitting from the project improvements as opposed to all property owners in Town.

TOWN ATTORNEY REVIEW

Resolution No. 72-2019 was prepared by Heather Encinosa, Esq., of the law firm Nabors, Giblin & Nickerson. Ms. Encinosa focuses her practice on assessments and special districts and previously prepared the Town’s ordinance that established Chapter 90 of the Town Code pertaining to special assessments.

Attachments

cc: Paul Brazil, Director of Public Works Heather Encinosa, Esq.

RESOLUTION NO. 72-2019

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, PALM BEACH COUNTY, FLORIDA, RELATING TO THE PROVISION OF THE WORTH AVENUE IMPROVEMENT PROJECT; PROVIDING AUTHORITY AND DEFINITIONS; APPROVING THE FINAL ASSESSMENT ROLLS; PROVIDING FOR THE CONTINUED IMPOSITION OF THE IMPROVEMENT ASSESSMENTS TO FUND THE WORTH AVENUE IMPROVEMENT PROJECT AND IMPOSITION OF THE MAINTENANCE ASESSMENTS TO FUND THE RELATED MAINTENANCE SERVICES; PROVIDING FOR COLLECTION OF THE ASSESSMENTS PURSUANT TO THE UNIFORM ASSESSMENT COLLECTION ACT; PROVIDING FOR THE EFFECT OF THIS RESOLUTION; PROVIDING SEVERABILITY AND AN EFFECTIVE DATE.

WHEREAS, the Town Council adopted Chapter 90, Article II, of the Town of Palm Beach Code of Ordinances (the "Code") to provide for the imposition of special assessments to fund the construction of Capital Projects and the provision of Related Services to benefit property within Assessment Areas; and

WHEREAS, on July 11, 2019, the Town Council adopted Resolution No. 54-2019 (the “Preliminary Rate Resolution”) describing the method of assessing the cost of the design, construction, and installation of the Worth Avenue Improvement Project and the related Maintenance against the real property that will be specially benefited thereby, and directing the preparation of the updated Improvement Assessment Roll and Maintenance Assessment Roll and provision of the notices required by the Code; and

WHEREAS, pursuant to the provisions of the Code, the Town Council is required to confirm or repeal the Preliminary Rate Resolution with such amendments as the Town Council deems appropriate after hearing comments and receiving objections of all interested parties; and

WHEREAS, the final Improvement Assessment Roll and Maintenance Assessment Roll have been filed with the Town Manager, as required by the Code; and

WHEREAS, as required by the Code, notice of a public hearing has been published and, if required, mailed to each property owner of the continued imposition of the assessment and notifying such property owner of the opportunity to be heard concerning the assessments; the proof of publication and an affidavit of mailing are attached hereto as Appendices A and B respectively; and

WHEREAS, a public hearing was duly held on September 10, 2019, and comments and objections of all interested persons have been heard and considered as required by the terms of the Code.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, FLORIDA, AS FOLLOWS:

SECTION 1. AUTHORITY. This Resolution is adopted pursuant to the Code; the Initial Assessment Resolution (Resolution No. 74-2010); the Final Assessment Resolution (Resolution No. 99-2010); the Preliminary Rate Resolution; Chapter 166, Florida Statutes; Article VIII, Section 2, Florida

Constitution; the Town of Palm Beach Charter; and other applicable provisions of law.

SECTION 2. DEFINITIONS.

1. This Resolution is the Annual Rate Resolution as defined in the

   
   

   Code.

   
   

2. All capitalized terms in this Annual Rate Resolution shall have the meanings defined in the Code, the Initial Assessment Resolution, and the Final Assessment Resolution unless the context clearly indicates an alternative meaning. SECTION 3. CONFIRMATION OF PRELIMINARY RATE RESOLUTION. The Preliminary Rate Resolution is hereby ratified and

confirmed.

SECTION 4. APPROVAL OF FINAL ASSESSMENT ROLLS.

1. The updated Improvement Assessment Roll and Maintenance Assessment Roll for the Worth Avenue Assessment Area, which are attached hereto as Appendix D and incorporated herein by reference, are hereby approved for the Fiscal Year commencing on October 1, 2019.

2. Additionally, the Improvement Assessment Roll and Maintenance Assessment Roll, as approved, include those Tax Parcels of Assessed Property within the Worth Avenue Assessment Area that cannot be set forth in the Improvement Assessment Roll and Maintenance Assessment Roll due to the provisions of Chapter 2019-12, Laws of Florida, concerning exempt “home addresses” under Section 119.071(d), Florida Statutes.

SECTION 5. ASSESSMENTS TO FUND THE PROJECT COST AND MAINTENANCE COST OF THE WORTH AVENUE IMPROVEMENT PROJECT.

1. The assessable portion of the Tax Parcels described in the updated Improvement Assessment Roll and Maintenance Assessment Roll are hereby found to be specially benefited by the design, construction, and installation of the Worth Avenue Improvement Project and the related Maintenance in the amount of the maximum annual Assessments set forth in the assessment rolls. The methodology set forth in the Preliminary Rate Resolution for computing the Improvement Assessments and Maintenance Assessments, respectively, are hereby approved and found to be a fair and reasonable method of apportioning the Project Cost and Maintenance Cost among the benefited properties.

2. Annual Improvement Assessments have been levied and imposed and annual Maintenance Assessments are hereby levied and imposed on all Tax Parcels within the Worth Avenue Assessment Area at the maximum annual assessment rates computed in accordance with the Initial Assessment Resolution, Final Assessment Resolution, and Preliminary Rate Resolution for a period not to exceed 30 years, commencing with the ad valorem tax bill that was mailed in November 2010.

3. Upon adoption of this Annual Rate Resolution:

   
   

   1. the Assessments shall constitute a lien against the assessed property equal in rank and dignity with the liens of all state, county, district or municipal taxes and other non-ad valorem assessments. Except as otherwise

      provided by law, such lien shall be superior in dignity to all other liens, titles, and claims until paid. The lien shall be deemed perfected upon adoption by the Town Council of this Annual Rate Resolution and shall attach to the property included on the Assessment Rolls as of the prior January 1, the lien date for ad valorem taxes.

   2. as to any Tax Parcel that is acquired by a public entity through condemnation, negotiated sale or otherwise prior to adoption of the next Annual Rate Resolution, the Prepayment Amount shall constitute a lien against assessed property equal in rank and dignity with the liens of all state, county, district or municipal taxes and other non-ad valorem assessments. Except as otherwise provided by law, such lien shall be superior in dignity to all other liens, titles, and claims, until paid. The lien shall be deemed perfected upon adoption by the Town Council of the Annual Rate Resolution and shall attach to property included on the Improvement Assessment Roll upon adoption of the Annual Rate Resolution.

SECTION 6. COLLECTION OF ASSESSMENTS. The Assessments

shall be collected pursuant to the Uniform Assessment Collection Act. Upon adoption of this Annual Rate Resolution, the Town Manager shall cause the certification and delivery of the Assessment Rolls to the Tax Collector by September 15, in the manner prescribed by the Uniform Assessment Collection Act. The Assessment Rolls, as delivered to the Tax Collector, shall be

accompanied by a Certificate to Non-Ad Valorem Assessment Roll in substantially the form attached hereto as Appendix C.

SECTION 7. EFFECT OF ANNUAL RATE RESOLUTION. The

adoption of this Annual Rate Resolution shall be the final adjudication of the issues relating to the Maintenance Assessments presented herein and in the Preliminary Rate Resolution unless proper steps are initiated in a court of competent jurisdiction to secure relief within 20 days from the date of the Town Council action on this Annual Rate Resolution.

SECTION 8. SEVERABILITY. If any clause, section or provision of this Resolution shall be declared unconstitutional or invalid for any reason or cause, the remaining portion of said Resolution shall remain in full force and effect and be valid as if such invalid portion thereof had not been incorporated herein.

SECTION 9. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town of Palm Beach assembled this 10th day of September, 2019.

Gail L. Coniglio, Mayor ATTEST:

Kathleen Dominguez, Town Clerk

APPENDIX A PROOF OF PUBLICATION

The Palm Beach Post

Palm Beach Daily News idea.bar

PROOF OF PUBLICATION

STATE OF FLORIDA

PUBLIC NOTICE

Before the undersigned authority, personally appeared Teal Pontarelli, who on oath, says that he/she is a Legal Advertising Representative of The Palm Beach Post, a daily and Sunday newspaper, publishedin West Palm Beach and distributed in Palm Beach County, Martin County, and St. Lucie County, Florida ; that the attached copy of advertising for a P-Main Legal ROP was published in said newspaper on: first date of Publication 08/16/2019 and last date of Publication 08/16/2019. Affiant further says that the said The Palm Beach Post is a newspaper published in West Palm Beach, in said Palm Beach County, Florida and that the said newspaper has heretofore been continuously published in said Palm Beach County, Florida, daily and Sunday and has been entered as second class mail matter at the post office in West Palm Beach, in said Palm Beach County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he/she has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisementfor publication in said newspaper.

PALM BEACH FINANCE, TOWN OF 360 S COUNTY RD

PALM BEACH, FL 33480-6735

Signed

.,,..vPubt OONNAS. TAYLOR

0

Please see Ad on following page(s).

"' ··· · · ·. 1' MY COMMISIOSN# GG 031838

:. } ,%f;;ci.f }..;*, EXPIRES: September 19, 2020

-,. cf· Bonded Thru Budget Notary Services

PALM BEACH FINANCE, TOIM'l OF 360 S COUNTY RO

PALM BEACH, FL 33480-6735

AVEN El PRO VE ENT ROJEC

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APPENDIX B AFFIDAVIT OF MAILING

AFFIDAVIT OF MAILING

BEFORE ME, the undersigned authority, personally appeared Jane Le Clainche, who, after being duly sworn, depose and say:

1. I, Jane Le Clainche, as the Finance Director of the Town of Palm Beach ("Town"), have been directed by the Town Council, to mail or cause to be mailed the notices required by Section 7 of Resolution No. 54-2019 and Sections 90-65 and 90-85 of the Town of Palm Beach Code.

2. In accordance with Section 7 of Resolution No. 54-2019 and Sections 90- 65 and 90-85 of the Town of Palm Beach Code, I have caused such individual notices for each affected property owner to be prepared and each notice included the following information: the purpose of the assessment; the total amount proposed to be levied against each parcel; the unit of measurement to be applied against each parcel to determine the assessment; the number of such units contained within each parcel; the total revenue the Town expects to collect by the assessment; a statement that failure to pay the assessment will cause a tax certificate to be issued against the property which may result in a loss of title; a statement that all affected property owners have a right to appear at the hearing and to file written objections with the local governing board within 20 days of the notice; and the date, time, and place of the hearing.

3. On or before August 20, 2019, I mailed, or directed the mailing of, said notices by first class mail to each owner of property within the Town that is included on the Assessment Roll at the address then shown on the real property assessment tax roll

   
   

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   maintained by the Palm Beach County Property Appraiser for the purpose of the levy and collection of ad valorem taxes.

   

4. Additionally, in accordance with Chapter 92-264, Laws of Florida, I timely provided the information detailed in paragraph 2. above concerning the assessments to the Palm Beach County Property Appraiser for inclusion as a part of the notice of proposed property taxes under Section 200.069, Florida Statutes, the truth-in-millage notification.

FURTHER AFFIANT SAYETH NOT.

Jane Le Clainche

STATE OF FLORIDA COUNTY OF PALM BEACH

The foregoing Affidavit of Mailing was sworn to and subscribed before me this day of September, 2019 by Jane Le Clainche, Finance Director, Town of Palm Beach, Florida. She is persona to me or has r.roduced as

identification and did take an oath.··

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APPENDIX C

FORM OF CERTIFICATE TO

NON-AD VALOREM ASSESSMENT ROLL

the Town of Palm Beach Palm Beach

10th September 2019

the Town of Palm Beach Palm Beach

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APPENDIX D UPDATED ASSESSMENT ROLLS

TOWN OF PALM BEACH, FLORIDA

Improvement Assessment Roll and Maintenance Assessment Roll for the Worth Avenue Assessment Area Fiscal Year 2020

TOWN OF PALM BEACH, FLORIDA

Improvement Assessment Roll and Maintenance Assessment Roll for the Worth Avenue Assessment Area Fiscal Year 2020