TABLE OF CONTENTS‌

TABLE OF CONTENTS 1

EXECUTIVE SUMMARY i

FUND BUDGET OVERVIEW 5

GENERAL FUND REVENUES AND EXPENDITURES 7

REVENUES BY TYPE 9

EXPENDITURES BY TYPE. 15

GENERAL FUND EXPENDITURES 18

TOWN MANAGER'S OFFICE MEMO 21

PROGRAM: LEGISLATIVE 111 24

PROGRAM: GENERAL GOVERNMENT 113 25

DEPARTMENT: TOWN MANAGER’S OFFICE 27

PROGRAM: ADMINISTRATIVE MANAGEMENT 121 28

PROGRAM: TOWN CLERK 131 31

PROGRAM: ADVICE AND LITIGATION 122 33

INFORMATION TECHNOLOGY MEMO 35

PROGRAM: INFORMATION TECHNOLOGY 125 37

HUMAN RESOURCES MEMO 41

DEPARTMENT: HUMAN RESOURCES 44

PROGRAM: HUMAN RESOURCES 123 45

FINANCE DEPARTMENT MEMO 47

FINANCE DEPARTMENT ORGANIZATION CHART 48

DEPARTMENT: FINANCE 49

PROGRAM: FINANCIAL MANAGEMENT 51

PROGRAM: PURCHASING 144 53

PLANNING, ZONING AND BUILDING MEMO 55

PLANNING, ZONING AND BUILDING ORGANIZATIONAL CHART 57

DEPARTMENT: PLANNING AND ZONING 58

PROGRAM: PLANNING AND ZONING 211 60

PROGRAM: LANDMARKS PRESERVATION 214 62

PROGRAM: FIRE PREVENTION 215 63

PROGRAM: CODE ENFORCEMENT 216. 64

RECREATION MEMO 67

RECREATION DEPARTMENT ORGANIZATIONAL CHART 81

DEPARTMENT: RECREATION 82

PROGRAM: ADMINISTRATION 311. 84

PROGRAM: TENNIS 312 86

PROGRAM: RECREATION CENTER 313 88

FIRE RESCUE MEMO 91

FIRE RESCUE ORGANIZATIONAL CHART 93

DEPARTMENT: FIRE RESCUE 94

PROGRAM: FIRE ADMINISTRATION 411 96

PROGRAM: OPERATIONS 417 97

PROGRAM: TRAINING 418 99

PROGRAM: OCEAN RESCUE 419 100

POLICE DEPARTMENT MEMO 101

PALM BEACH POLICE DEPARTMENT: ORGANIZATIONAL CHART 105

DEPARTMENT: POLICE DEPARTMENT 106

PROGRAM: ADMINISTRATIVE MANAGEMENT 421 108

PROGRAM: ORGANIZED CRIME VICE AND NARCOTICS (OCVAN) 422 110

PROGRAM: RECORDS INFORMATION SYSTEM UNIT 423 111

PROGRAM: TRAINING AND COMMUNITY RELATIONS UNIT (TCR) 424 112

PROGRAM: COMMUNICATIONS UNIT 425 113

PROGRAM: CRIME SCENE/EVIDENCE UNIT 426 114

PROGRAM: PATROL 428 115

PROGRAM: CRIMINAL INVESTIGATION 429 117

PROGRAM: PARKING CONTROL UNIT 430 118

PUBLIC WORKS MEMO 121

PUBLIC WORKS ORGANIZATIONAL CHART 126

DEPARTMENT: PUBLIC WORKS 127

PROGRAM: ADMINISTRATIVE MANAGEMENT 511 129

PROGRAM: STREET REPAIR & MAINTENANCE 521 131

PROGRAM: TRAFFIC CONTROL 523 133

PROGRAM: STREET LIGHTING 524 135

PROGRAM: STORM SEWER MAINTENANCE 531 136

PROGRAM: SANITARY SEWER MAINTENANCE 532 138

PROGRAM: SANITARY SEWER TREATMENT 533 140

PROGRAM: RESIDENTIAL COLLECTION 541 141

PROGRAM: COMMERCIAL COLLECTION 542 142

PROGRAM: REFUSE DISPOSAL 543 143

PROGRAM: YARD TRASH COLLECTION 544 144

PROGRAM: RECYCLING 545 146

PROGRAM: PARKS 551 147

PROGRAM: FACILITY MAINTENANCE 554 149

PROGRAM: GENERAL ENGINEERING SERVICES 561 151

PROGRAM: RIGHT OF WAY INSPECTIONS 565 152

PROGRAM: EQUIPMENT OPERATION & MAINTENANCE 571 153

OTHER PROGRAMS 155

PROGRAM 321: LIBRARY SERVICES 155

PROGRAMS 611 TO 625: TRANSFERS 156

PROGRAM 710: EMERGENCY MANAGEMENT 157

PROGRAM 711: CONTINGENT APPROPRIATIONS 158

FUND 122: TOWN‐WIDE UNDERGROUND UTILITIES 159

GENERAL OBLIGATION BONDS 161

FUND 205: 2016A AND 2019 REVENUE BONDS 167

FUND 206: 2016B WORTH AVENUE REVENUE BOND 168

FUND 307: PAY‐AS‐YOU‐GO CAPITAL IMPROVEMENT FUND 169

FUND 309: COASTAL MANAGEMENT FUND 173

FUND: WORTH AVENUE MAINTENANCE FUND 311 177

MARINA MEMO 179

MARINA ENTERPRISE FUND ORGANIZATION CHART 184

FUND 401: MARINA ENTERPRISE FUND 185

PAR 3 MEMO 189

PAR 3 ENTERPRISE FUND ORGANIZATIONAL CHART 196

FUND 402: PAR 3 ENTERPRISE FUND 197

PLANNING, ZONING AND BUILDING ORGANIZATIONAL CHART 203

BUILDING ENTERPRISE FUND 204

PROGRAM: PERMIT ISSUANCE 212 206

PROGRAM: INSPECTION & COMPLIANCE 213 208

FUND 501: SELF INSURANCE FUND (RISK MANAGEMENT) 211

FUND 502: SELF INSURANCE (HEALTH BENEFIT) 213

FUND 320: EQUIPMENT REPLACEMENT FUND 215

RETIREMENT FUND 219

FUND: EMPLOYEES RETIREMENT (600) 229

HEALTH INSURANCE TRUST (OPEB) 231

FUND 610: HEALTH INSURANCE TRUST 233

RESOLUTION NO. 45‐2020 235

RESOLUTION NO. 46‐2020. 237

RESOLUTION NO. 47‐2020 247

RESOLUTION NO. 48‐2020. 249

RESOLUTION NO. 49‐2020. 271

RESOLUTION NO. 50‐2020. 297

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Town of Palm Beach Executive Summary‌

PROPOSED BUDGET FOR FISCAL YEAR 2020‐2021

Town of Palm Beach

PRESENTATION FOR JULY 14, 2020 SPECIAL TOWN COUNCIL MEETING

Executive Summary

Town of Palm Beach

Town of Palm Beach, Florida

July 14, 2020

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

The proposed FY2021 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. Faced with the recessionary effects of the COVID‐19 pandemic, extra attention was placed on finding savings wherever possible. Revenues are forecasted to decline in FY20 and possibly into FY21 which added extra pressure to find ways to cut expenditures.

This proposed budget is the result of the third 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. It is because of the hard work we have accomplished in the past few years and our continuing efforts to reduce expenses, we are able to propose a budget that delivers a $0 increase in property taxes for homestead property owners for the 3rd year in a row.

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 FY21 budget compares to previous fiscal years. We compare the FY21 budget first to FY12 because it was the lowest total budget year in the past decade. We also describe the change since FY09 because that was the highest budget year to date and the catalyst for future budget reforms.

The years FY2009 through FY2019 represent actual costs, FY2020 numbers are the adopted budget, and FY2021 represents the proposed budget.

The overall General Fund expenditures have increased since FY09 by a total of 22.82% or 1.9% per year for the last 12 years. Since FY12, expenditures have increased by 43.86% or 4.87% per year for the past 9 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 $2,282,206 or 4.11%, for an average annual change of 0.34%, and since FY12, operating expenditures have increased by $12,884,774 or 28.67%, for an average annual change of 3.19%. Please refer to the table on page iv for the breakdown of

Executive Summary

Town of Palm Beach

expenditures. Transfers and other expenses since FY09 have increased by 123.41% or

$12,752,705, representing an average annual change of 10.28%, and since FY12, these expenses have increased $11,785,698 or 104.29% for an average annual change of 11.59%.

FY12 to FY21

Highlights of the major increases since FY12 are described below:

• Total expenditures have increased by 43.86% (4.87% annually) and total operating cost increased by 28.67% (3.19% annually).

• The largest driver of expenditure increases since FY12 were pension costs for current employees and retirees receiving legacy benefits, which increased $8,201,678 plus the extraordinary contribution of $5,420,000 to fund the lowering of the assumed rate of return. These costs represent 55.21% of the General Fund total increase during this time period. The increase in funding is intended to return the pension fund to healthy levels in the next five to ten years depending on investment returns.

• Salary and wage costs have increased $2,130,524 or 8.64% of the total increase. The average annual increase is 1.03%. The recent compensation and benefit study costs in FY20 are a portion of the increase.

• Contractual costs have increased $3,388,322 (13.73% 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 $1,140,697 since 2012.

• The transfer to the coastal management fund has increased $817,000 or 3.31% of the total. In FY15, $4,777,000 was added to Town taxes to begin developing a permanent funding source for the coastal program. The FY21 transfer has been decreased to this original funding amount.

• Debt service costs increased $2,191,148 or 8.88% of the total increase since 2012 due to the issuance of the 2013 revenue bonds.

• The transfer to the Capital Improvement Fund has increased by $1,662,000 or 166% to build up reserves for future capital projects. These costs represent 6.74% of the total increase.

  These six expenditures represent 96.51% 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 17.32% or

  $1,402,650. 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 $189,093, while health insurance costs nationwide were experiencing increases.

  

  Executive Summary

  Town of Palm Beach

  

• Depreciation costs have increased $412,642 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 through 2019 which has been changed to match CPI, which for FY21 was negative, resulting in level funding for FY21.

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

  
  

  FY09 – FY21

  
  

  To put the FY21 proposed budget into further context, we looked back 12 years and compared the FY21 budget to the FY09 budget:

• Total expenditures have increased by 22.82% (1.9% annually) and total operating costs increased $2,282,206 or 4.11% or 0.34% annually.

• The pension costs including the annual required contribution, the extraordinary contribution contributed to 75.13% of the total increase.

• Salary costs decreased by $1,706,049 and benefit costs, other than pension, declined by

  $2,226,690. Total FTEs decreased from 410.39 in FY09 to 345.57 in FY21, a decrease of

  64.82 employees. Full time staffing declined by 16.68 positions in the proposed FY21 budget. A complete analysis of staffing can be found later in this document.

• Contractual costs increased by $1,694,233 or 19.44%. This increase is due to contracting out services and increases in sewage treatment and disposal costs which increased

  $1,115,666 during this period.

• The Transfers and other category, which include funding for special detail overtime, Four Arts Library, debt service, coastal funding, capital improvement funding, risk funding, and the extraordinary retirement contribution have increased $12,752,705 or 123,41% over the 12‐year period, representing an average annual change of 10.28%. These categories alone accounted for 84.82% of the total increase over this time period. The increase in pension funding and lowering of the assumed rate of return should result in returning the Town’s pension fund to healthy levels of solvency. In the future, the extraordinary contributions can be reduced or eliminated.

  
  

  A summary table can be found on the following page showing the expenditures by category since FY2009.

  Executive Summary

  Town of Palm Beach

  iv

  iv

  Executive Summary

  Town of Palm Beach

  

  

  
  

  Expenditure Category	FY2009	FY2010	FY2011	FY2012	FY2013	FY2014	FY2015	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY20 vs. FY21 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	$23,891,280	$26,596,351	$25,104,130	$ (1,492,221)	‐5.61%	‐6.36%	‐0.53%	9.27%	1.03%
  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	9,513,014	11,054,546	11,615,860	$ 561,314	5.08%	75.13%	6.26%	240.22%	26.69%
  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	6,979,502	7,171,940	6,695,585	$ (476,355)	‐6.64%	‐24.96%	‐2.08%	‐17.32%	‐1.92%
  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	9,871,056	10,682,513	10,407,395	$ (275,118)	‐2.58%	19.44%	1.62%	48.27%	5.36%
  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	1,727,763	1,753,420	1,712,155	$ (41,265)	‐2.35%	‐1.87%	‐0.16%	9.90%	1.10%
  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	2,533,597	2,422,703	2,293,961	$ (128,742)	‐5.31%	‐15.78%	‐1.31%	21.93%	2.44%
  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	54,516,211	59,681,473	57,829,086	(1,852,387)	‐3.10%	4.11%	0.34%	28.67%	3.19%
  Special Assignment OT	536,382	353,370	419,899	653,762	493,138	483,568	538,877	700,786	308,713	384,442	1,017,928	1,408,250	1,408,250	$ ‐	0.00%	162.55%	13.55%	115.41%	12.82%
  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	352,650	$ ‐	0.00%	29.46%	2.46%	29.46%	3.27%
  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	2,010,439	$ 109,620	5.77%	4.82%	0.40%	12.22%	1.36%
  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	2,662,000	$ 242,000	10.00%	46.51%	3.88%	166.20%	18.47%
  Transfer to Underground Utility Fund		‐	‐	‐	‐	‐	‐	2,530,250	267,041	‐	135,000	144,450	165,000	$ 20,550	14.23%	#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	5,691,148	$ (292,765)	‐4.89%	50.16%	4.18%	62.60%	6.96%
  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	4,777,000	$ (1,743,211)	‐26.74%	138.85%	11.57%	20.63%	2.29%
  Extraordinary Transfer to Retirement Fund	‐	‐	‐	‐	‐	‐	‐	‐	2,500,000	4,759,016	9,501,699	5,420,000	5,420,000	$ ‐	0.00%	#N/A	#N/A	#N/A	#N/A
  Contingency		‐	‐	‐	‐	‐	‐	‐	‐	‐	‐	610,000	600,000	$ (10,000)	‐1.64%	#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	28,441,606	24,760,293	23,086,487	(1,673,806)	‐6.76%	123.41%	10.28%	104.29%	11.59%
  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	$82,957,817	$84,441,766	$80,915,573	$ (3,526,193)	‐4.18%	22.82%	1.90%	43.86%	4.87%
  FTE Totals	410.39	399.98	367.33	362.65	353.94	348.94	360.18	365.09	362.87	370.87	356.12	362.25	345.57	(16.68)	‐4.60%	‐15.79%	‐1.32%	‐4.71%	‐0.52%

  

  Executive Summary

  Town of Palm Beach

  

  FY21 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.

  In addition, the Departments prepared memorandums that are included in each department section of this document that describe in detail the major changes for each program.

  One major change presented in the FY21 budget is the creation of the Building Enterprise Fund. This fund has been established to account for all building permit revenue and expenses and allow for greater transparency as required by the State of Florida. During FY20, a cost allocation study was performed to confirm the appropriate permit fee multiplier to stay consistent with Florida Statutes and to provide the basis for implementing reduced permit fees for owners and contractors that choose to use Private Providers on their construction projects. These new fees were adopted by the Town Council at the March 11, 2020 meeting.

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

  • Health Insurance costs are calculated and then allocated throughout the budget on a per Full‐Time Equivalent (FTE) basis. The Health costs per FTE for FY21 is $10,948.

  • 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 $11,792,492. Legacy plan costs represent $9,129,104 of the total and the costs for the ongoing plan are $2,663,388. The breakdown by active full time employee group as of the most recent actuarial report dated September 30, 2019, is shown below.

    
    

    	FTE	Legacy Plan	Ongoing plan	Total Contribution
    General	152	2,542,742	1,017,498	3,560,240
    Lifeguard	4	199,955	15,956	215,911
    Police	58	2,871,303	782,386	3,653,689
    Fire-Rescue	58	3,515,104	847,548	4,362,652
    Total	272	9,129,104	2,663,388	11,792,492
    Percent of Total		77.4%	22.6%	100.0%

    

    Executive Summary

    Town of Palm Beach

    

    FY21 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 FY20 was 18.29%. This means for every $100 paid in taxes only $18.29 stays in the Town.

    Below are the taxing districts and the adopted millage rates for FY20 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 71.66% of all taxes paid in the Town followed by the Town of Palm Beach at 18.29% with the other taxing districts making up the balance of 10.05%. The voters approved an increase to the FY20 tax rate for the Palm Beach County School District to increase security in the schools and increase teacher salaries.

    
    

    

    

    

    Adopted Taxes Per $1 % of Total Paid by Palm Taxing Authority Millage Rate Million Value Tax Bill Owners

    
    

    Palm Beach County School District	7.1640	$7,164		42.70%	$130,651,111
    Palm Beach County	4.8580	$4,858		28.96%	$88,596,189
    Palm Beach	3.0681	$3,068		18.29%	$55,979,439
    Health Care District	0.7261	$726		4.33%	$13,242,012
    Children Services	0.6497	$650		3.87%	$11,848,692
    South Florida Water Mgmt	0.2398	$240		1.43%	$4,373,274
    Everglades Construction	0.0397	$40		0.24%	$724,016
    Florida Inland Navigation	0.0320	$32		0.19%	$583,590
    Grand Total	16.7774	$16,777		100.00%	$305,998,321

    The total taxes paid per million of taxable value in the Town in FY20 was $16,777. Of that amount,

    $3,068 stayed in the Town to pay for services and the remaining $13,709 went to other taxing districts. A breakdown by taxing district for a $1 million homesteaded property using the FY20 tax rates is shown on the following page.

    

    Executive Summary

    Town of Palm Beach

    

    
    

    

    FY21 Millage Rate

    Appearing on the following page is a millage rate table that showing the recommended FY21 millage rate versus the FY20 millage. The recommended FY21 millage rate of 2.9962 represents a 2.34% reduction from FY20, and a $0 change 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 1.57% over the rolled back rate of 2.9500. The rolled‐back millage rate would represent a 3.85% decrease in the millage and would provide the homestead property owner a $45 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

    

    
    

    	FY20 Millage Rate	FY21 Millage Rate
    Millage Rate	3.0681	2.9962
    Tax Revenue	$55,979,439	$57,134,000
    Revenue Increase over FY20	n/a	$1,154,619
    Millage % Increase/Decrease vs. FY20	n/a	(2.34%)
    Homestead Value Increased by 2.3%	$1,000,000	$1,023,000
    Town Taxes	$2,915	$2,915
    Increase/(Decrease) over FY20	n/a	($0)
    Non Homestead Tax Increase Ave 4.68%	n/a	$68

    
    

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

    Revenue	FY2020	FY2021	FY20 vs. FY21 Difference	% Change
    Ad Valorem Taxes	$55,979,439	$57,134,000	$ 1,154,561	2.06%
    Non Ad Valorem Taxes	6,459,000	6,351,000	(108,000)	‐1.67%
    Licenses & Permits	10,843,800	4,245,100	(6,598,700)	‐60.85%
    Intergovernmental	1,099,600	956,000	(143,600)	‐13.06%
    Charges for Services	6,289,199	5,384,700	(904,499)	‐14.38%
    Fines and Forfeitures	942,000	916,000	(26,000)	‐2.76%
    Investment Earnings	1,230,000	904,773	(325,227)	‐26.44%
    Miscellaneous	490,728	494,500	3,772	0.77%
    Transfers from the Par 3 Enterprise Fund	25,000	25,000	‐	0.00%
    Transfer from the Building Enterprise Fund	‐	3,200,000	3,200,000	100.00%
    Transfers from unassigned fund balance for Contingency and Compensated Absences	1,083,000	1,304,500	221,500	20.45%
    Total Revenues	$84,441,766	$80,915,573	$ (3,526,193)	‐4.18%

    Significant highlights for General Fund FY21 revenues include:

• Based upon the Property Appraiser's Preliminary Certification issued June 25, 2020, existing property taxable values in the Town have risen 4.68% over the prior year. The total taxable value is $20,072,463,151.

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

• The decrease in Licenses and Permits is due to the transfer of most of these revenues to the new Building Enterprise Fund.

• The Intergovernmental revenue decrease is due to expected reductions in State revenue sharing and sales tax receipts.

  

  Executive Summary

  Town of Palm Beach

  

• Charges for services decreased due to some of the fire prevention permits being combined into the “one” building permit structure. In addition, solid waste fees are declining based on usage, parking meter fees are declining due to the marina closure and reductions to the FY20 trends. Recreation fees also decreased due to the expectations that the COVID‐19 pandemic will reduce use during the FY21 season.

• Fines and forfeiture revenue decreased based on improved compliance and lower expected parking usage.

• Investment earnings have decreased based on lower expected interest rates.

• The interfund transfers represent a transfer of $25,000 from the Par 3 Golf Course enterprise fund.

• The transfer from the Building Enterprise Fund of $3,200,000 represents allocated costs of General Fund services provided for the Building permit process.

• Transfers from fund balance represent transfers for Contingency and the compensated absence payouts for the year. It increased due to a large amount of expected retirements for FY21.

  
  

  General Fund Expenditures

  General Fund expenditures have decreased by 4.18% from FY20. The details by expenditure category are shown in the table below.

  Expenditure Category	FY2020	FY2021	FY20 vs. FY21 Difference	% Change
  Salary and Wages	$26,596,351	$25,104,130	$ (1,492,221)	‐5.61%
  Pension Benefits	11,054,546	11,615,860	$ 561,314	5.08%
  Other Employee Benefits	7,171,940	6,695,585	$ (476,355)	‐6.64%
  Contractual	10,682,513	10,407,395	$ (275,118)	‐2.58%
  Commodities	1,753,420	1,712,155	$ (41,265)	‐2.35%
  Depreciation/Capital Outlay	2,422,703	2,293,961	$ (128,742)	‐5.31%
  Subtotal Operating Expenditures	59,681,473	57,829,086	(1,852,387)	‐3.10%
  Special Assignment OT	1,408,250	1,408,250	$ ‐	0.00%
  Library	352,650	352,650	$ ‐	0.00%
  Transfer to the Risk Insurance Fund	1,900,819	2,010,439	$ 109,620	5.77%
  Transfer to Capital Improvement Program	2,420,000	2,662,000	$ 242,000	10.00%
  Transfer to Underground Utility Fund	144,450	165,000	$ 20,550	14.23%
  Transfer to the Debt Service Fund	5,983,913	5,691,148	$ (292,765)	‐4.89%
  Transfer to Coastal Management Fund	6,520,211	4,777,000	$ (1,743,211)	‐26.74%
  Extraordinary Transfer to Retirement Fund	5,420,000	5,420,000	$ ‐	0.00%
  Contingency	610,000	600,000	$ (10,000)	‐1.64%
  Subtotal Transfers and Contingency	24,760,293	23,086,487	(1,673,806)	‐6.76%
  Total General Fund	$ 84,441,766	$ 80,915,573	$ (3,526,193)	‐4.18%

  

  Executive Summary

  Town of Palm Beach

  

  Highlights for General Fund expenditures are as follows:

  Total operating expenditures decreased $1,852,387 or 3.10% from FY20. Total transfers and other expenses decreased $1,673,806 or 6.76%.

  
  

  Operating Expenditures:

• Salary and wages decreased $1,492,221 due to the transfer of personnel accounts to the Building Enterprise Fund that totaled $1,414,998 and the reduction in FTEs of 16.68 (see full description later in the document). These decreases are offset by merit and step increases totaling $323,815. As a reminder, the Town Council approved during the Compensation study, lowering merit increases to 1.5% ‐ 6%, from 3% ‐ 7.5% for FY21. The Town Council also approved the establishment of a COLA on October 1st based on the April CPI index. The CPI index that was published in April showed a ‐.5 decline year over year. We are not proposing a COLA increase for FY21 due to the negative CPI. We are proposing to increase the ranges by 2.5% at a cost of $91,071 in order to maintain competitiveness. Additional information regarding compensation can be found later in this message under “Compensation Update”.

• The total annual required contribution for the defined benefit plan (DB) and defined contribution (DC) pension benefits increased by a total of $561,314. Defined benefit plan increases were due to assumption changes, including the investment return, and salary growth assumptions, the effects of the benefit changes from the compensation study and past losses. The Town Council approved using a portion of the prepaid contribution ($126,945) to offset the effects of the compensation study impact on the retirement costs in FY21. The remaining prepaid balance of $484,000, can be used in FY22 to offset the cost of expected investment losses from FY20. Defined Contribution costs decreased by

  $56,554 because of the decreases in salaries and the transfer of accounts to the Building Enterprise Fund.

• Other employee benefit costs decreased by $476,355 or 6.64%. Health insurance costs were lower due to fewer employees allocated to the General Fund as mentioned above, FICA tax decreased by $163,960 due to the decrease in the salary budget. The Longevity/Bonus program decreased by $136,880 due to the phasing out of the longevity program accomplished through retirements.

• Included in Other Employee Benefits is the Transfer to the OPEB trust. The transfer to the OPEB trust fund increased by $6,844. In the most recent actuarial report, the Town’s funding level was 107.4% funded.

• The decrease in contractual costs ($275,118) is due in part to a decrease in legal fees ($157,000), the transfer of accounts from PZB to the Building Enterprise Fund, ($573,600), the elimination of employee events ($22,100) and the elimination of education and conference travel this year due to the pandemic, ($90,796). These are all offset by increases in contractual hiring versus Town staff in recreation ($350,800), IT ($73,500), and contractual parking enforcement officers ($144,000), and an increase from West

  

  Executive Summary

  Town of Palm Beach

  

  Palm Beach for the sewage treatment and disposal costs of ($70,807). We took out all contractual increases since we are expecting the June CPI to be flat or negative.

• The decrease in commodities of ($41,265) is mostly due to the transfer of accounts from PZB to the Building Enterprise Fund, ($33,000), decreases in computer software ($22,600), and other numerous small increase throughout these accounts.

• Depreciation/Capital outlay costs decreased $148,742 due to the transfer of depreciation to the Building Enterprise Fund ($96,038), and a reduction in the purchase of equipment versus prior years of ($50,161).

• The funding for the Four Arts Library will remain flat. This funding is now tied to CPI with a cap of 3%. The CPI 12‐month change through April for the Miami‐Fort Lauderdale‐West Palm Beach was ‐.5%.

  
  

  Transfers and Other:

• The transfer to the Risk Fund increased by $109,620 due to expected increases in the insurance market.

• The transfer to the Capital Improvement Fund increased by ($242,000) or 10% over FY20.

• 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 $292,765 due to the refinancing of the remaining 2010A bonds and the 2013 Bonds earlier this year.

• Coastal funding decreased by $1,743,211 due to anticipated Federal and State grants. The appropriation of $4,777,000 represents the initial tax increase to begin funding of the coastal program. The FEMA, Federal and State grants have allowed the Town to be able to reduce the Town’s contribution for annual funding. Please see the Coastal Budget section for more information about the budget and forecasted expenditures.

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

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

Funding By Department

Following this section are two General Fund Revenue/Expenditure summaries. These summaries show the Town’s revenues by category and the expenditures by department. The first summary shows the proposed General Fund budget. The second summary provided shows an “apples to apples” comparison if the Building Enterprise Fund had not been established this year, and the costs remained in the General Fund. In both cases, revenues and expenditures are less than FY20. The summary with the Building related accounts from the new 405 fund added in, results in a “profit” of $67,231 which will remain in the Building Enterprise Fund as a reserve in case of a downturn.

Executive Summary

Town of Palm Beach

Departmental Expenditures

The three largest departments, Police, Fire‐Rescue and Public Works, account for over 58.6% of the Town budget. The transfers mentioned above account for another 27% for a total of 85.6% of the total Town budget. All other general government and administrative departments make up the balance of 14.4%. The charts below and on the following page provide 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, 2019 was $26,540,203. This amount was $9,019,814 above the policy‐required minimum. The FY21 budget includes a transfer of $600,000 from fund balance to fund the contingency reserve and $490,705 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 $8,419,814.

Total excess reserves in all Town funds as of September 30, 2019, were $22,708,289. Of this amount $3,562,492 was allocated in FY20 from the Coastal Protection Fund for the bulkhead construction for the Marina Project.

Based on results thus far for FY20, and the economic uncertainty that prevails, we are currently estimating a surplus of between $1‐1.5 million at FY20 year‐end. This surplus is the result of many vacant positions, and savings from the implementation of the compensation study. If we experience a storm event or if the economy worsens this amount will decrease.

Compensation Update

In accordance with the Town‐wide Compensation Study completed in FY19, staff conducted a recent market assessment to ensure the Town’s pay ranges remain competitive within the Palm Beach County market and at the 75th percentile for public safety. Analysis of public safety market pay ranges resulted in increases to the minimum of the range for certain step plan positions in order to adjust minimums to the 75th percentile; however, pay range step maximums were mostly unchanged due to existing placement at or above the 75th percentile. Pay ranges for similarly situated open range positions in the Palm Beach County public market increased by an average of 2.7% in FY20, and are projected to increase by 3% in FY21 based on existing

Executive Summary

Town of Palm Beach

collective bargaining agreements. This resulted in an adjustment in the open range pay structure, versus public safety step of 2.5%.

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 FY21 is 345.57 full‐time equivalent personnel (FTE), which is a net decrease of 16.68 FTE from the adopted FY20 budget. A chart of the FTE by department is shown on the following page with a two‐year history. The chart shows full time employees which decreased by 5.01 FTE and PTNB staffing which decreased by 11.67 FTE, mostly due to more contractual staffing at the Recreation Center and the closure of the marina. 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 decrease of 16.68 FTEs in FY21 is made up of the following additions and reductions and other small reallocations across programs:

Position changes:

• 1 FTE reduction with the elimination of Purchasing Coordinator position.

• 1 FTE addition in Planning Zoning with the addition of the Zoning Tech position.

• 1 FTE reduction in Public Works elimination of a sanitation/trash worker.

• 4 FTE reduction in Police with the elimination of four parking control officers, replaced with contractual workers.

• 1.5 FTE reduction at Town Docks due to the closure for construction.

• .79 FTE reduction at the Par 3 golf course made up of part time positions replaced with contractual employees.

• 9.39 FTE reduction in Recreation part time no benefit positions replaced with contractual staffing.

  
  

  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 (Marina, Par 3 Golf Course and Building Enterprise Fund), 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 FY21, we expect to complete Phase 2 South and Phase 3 North, continue construction of Phases 3 South, and begin construction of Phase 4 and possibly Phase 5. In FY21, engineering design will be initiated for Phase 7 and possibly Phase 8 of the project.

  In addition to the FY21 budget, a cash flow projection through 2026 using the updated opinion of costs is included in the Townwide Underground Utility section. The forecast currently shows

  

  Executive Summary

  Town of Palm Beach

  

  a projected ending deficit of $10,780,948 in FY2026. Plans need to be made for funding of this deficit. Some options include: Using Town reserves, building funds into future budgets, applying for additional grant funding, and using marina profits.

  Debt Service Funds (205, 206)

  The Debt Service Funds provide for the payment of principal and interest on the Town’s outstanding bonds. During FY10, the Town authorized the issuance of $57,035,000 for a portion of the Town’s Accelerated Capital Improvement Program (ACIP) and refunding all of the Town’s existing debt. In addition, bonds totaling $14,770,000 were issued for the Worth Avenue Commercial District Project. On August 25, 2016, the Town issued bonds to refund most of the 2010A & 2010B bonds. This transaction produced gross savings of $8,900,539, net present value savings of $6,895,965 or 13.35% over 23 years. The remaining balance of $4,660,000 on this Bond was refinanced in 2019 and achieved net present value savings of $1,157,902 or 25.39% of the refunded bonds par amount. The all‐in true interest cost was 2.46%.

  In 2013, the Town issued $55,590,000 for the second phase of the ACIP, “bondable” coastal projects, and the Town’s portion of the Par 3 clubhouse project. In 2019, the Town issued bonds to refund most of the 2013 bonds. The transaction produced savings of $4,385,248 or 10.24%.

  
  

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

  
  

  As of September 30, 2020, the Town’s net bonded debt will amount to 19.4% of the legal limit of

  $1,003,623,158 (5% of preliminary FY21 taxable value of $20,072,463,151).

  
  

  The Town’s outstanding Revenue Bond debt as of September 30, 2020, is shown on the table on the following page:

  

  Executive Summary

  Town of Palm Beach

  

  
  

  Year Issued	Outstanding Principal Balance September 30, 2020	Purpose
  2016A	$39,320,000	First Phase of the ACIP and Refund Outstanding Debt
  2016B	$10,255,000	Worth Avenue Commercial District Project
  2013	$6,670,000	Remaining Balance on Second Phase of ACIP
  2018	$54,360,000	General Obligation Bonds for Townwide Undergrounding Project
  2019	$48,730,000	Refunding Revenue Bonds for Second Phase of the ACIP
  2019	$4,660,000	Refunding of Remaining Balance of First Phase of ACIP Debt
  2020	31,000,000	Marina Loan
  Total	$194,995,000

  
  

  The 2016A, 2013, 2019 Series Revenue Bond debt service is funded from non‐ad valorem revenues. A portion of the debt service payment is funded through the Recreation Enterprise Fund for the Town’s portion of the Par 3 golf course and clubhouse renovation ($190,567), and a portion is funded through the Coastal Management Fund ($542,232). The non‐ad valorem revenue transfer from the General Fund for FY21 is $5,691,148.

  The 2016B Series Revenue Bonds debt service appropriation of $722,913 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 FY21 on these bonds will be $3,398,850.

  During 2020, the Town issued non ad valorem debt totaling $31,000,000 through a bank loan for the Marina construction project. The debt service for FY21 will be $740,900 and paid through the Marina fund. Debt service will increase to $2,035,246 in FY22 once the marina is operational.

  

  Executive Summary

  Town of Palm Beach

  

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

  For FY21, the following items totaling $2,420,000 are included in the Capital Improvement Fund (307):

  • Pavement Management ‐ $1,000,000

  • Drainage Improvements ‐ $300,000

  • Sanitary Sewage System Improvements ‐ $1,120,000

  • Water main improvements (WPB) ‐ $1,000,000 (Funded by West Palm Beach) The transfer to the Capital Improvement Fund has increased by $242,000.

    The updated 5‐year Capital Improvement plan includes plans to rehabilitate the North Fire‐ Rescue Station in 2023‐2024. This project is expected to cost $5,500,000. At this time, we do not have a source of funds for this project. We are considering options such as; Town reserves and/or increasing the transfer to the CIP Fund using potential Marina revenues.

    
    

    Coastal Management

    The Coastal Management Fund (309) is used to fund the construction costs of the coastal projects. The details of the FY21 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 include the Mid‐town seawall and groins in the Mid‐town beach area. Due to the cost sharing by the Federal and State Governments for the Town’s projects, the transfer to the Coastal Management Fund is able to be decreased $1,743,211 to

    $4,777,000, which is the amount of the original tax increase used to initiate the funding of the coastal program.

    
    

    Enterprise Funds (401, 402, 405)

    
    

    Town Docks

    
    

    Town Docks are closed for construction through most of FY21. The marina is expected to be operational as of September 1, 2021. Revenues totaling $50,000 have been included for waiting list application fees and $3.1 million from the FIND grant for the marina construction. There will be operating expenses during the construction period totaling $797,282. Staffing has been reduced to 1.57 FTEs. An appropriation of $300,000 has been included for promotional advertising for the new marina and we expect to have to pay $62,000 for the submerged land lease in FY21. In addition, a debt service payment of $740,900 will be due on the loan for the replacement of the Town docks. We have included depreciation for FY21 since it is expected to be completed by September 1, 2021.

    

    Executive Summary

    Town of Palm Beach

    

    The unassigned reserves of the Marina and the balance in the dock replacement fund are able to cover the operating deficit of $793,111 that is expected during FY21.

    
    

    The total cost for the marina construction is $39,563,200. The loan amount was $31,000,000, we expect to receive a total of $3,425,000 in grants from FIND, we allocated the cost of the bulkhead construction of $3,562,492 to the Coastal Protection Fund and the balance of

    $1,575,708 will come from the Dock replacement reserve.

    
    

    Par 3 Golf Course

    
    

    Pending the Town Council approval of the recommended fees, Par 3 revenues are projected to increase over end of year estimates during FY21. The various FY21 fee adjustments include strategic increases to green fees and passes which will capitalize on player demand for our unique facility. The Par 3 Golf Course anticipates an operating gross profit of $683,500 prior to depreciation and other below the line expenses. The transfer to the reserves for the Golf Course and Clubhouse and the Equipment Replacement Fund total $263,924. Additional deductions from the operating profit include transfers for debt service ($194,813), contingency ($92,950) and the general fund ($25,000).

    
    

    The Par 3 Golf Course was separated from the Recreation Enterprise Fund last year. After the first year results and the split of the assets and liabilities of the funds within the Recreation Enterprise Fund, the Par 3 Golf Course ended FY19 with unrestricted net assets of ‐$953,128. FY20 results are not final, but due to the closures related to the COVID19 pandemic current estimates show the Par 3 ending with a deficit of approximately $177,003. This will further reduce the unrestricted net asset position of the Par 3. The FY21 budget shows a small ending profit as mentioned above for the year. The LTFP forecast shows improvement to the net assets of the fund. We will closely monitor this fund to ensure that there is improvement in the reserves.

    
    

    Resolutions are included in the backup for the proposed fee increases.

    
    

    Building Enterprise Fund

    
    

    The Building Enterprise Fund is being created this year to account for all building permit revenue and expenses and allow for greater transparency as required by the State of Florida. During FY20, a cost allocation study was performed to confirm the appropriate permit fee multiplier to stay consistent with Florida Statutes and to provide the basis for implementing reduced permit fees for owners and contractors that choose to use private providers on their construction projects. Total revenues for FY21 are anticipated to be $6,262,005 and total operating expenses are

    $5,960,701 which includes a transfer to the General Fund of $3,200,000, which is for the allocated

    

    Executive Summary

    Town of Palm Beach

    

    costs that the General Fund provides to the building permit process. Building permit related revenues have been decreased by $772,995 in anticipation of a slowdown in activity related to the pandemic. After depreciation of $96,038 and a 5% operating expense contingency of

    $138,035 there will be a remaining balance of $67,231, which will begin to build the reserves of this fund for a potential downturn.

    
    

    Internal Service Funds (501, 502, 320)

    The transfer to the Risk Fund (501) has increased by $109,620 due to expected increases in the insurance market.

    
    

    The Health Insurance Fund (502) transfer from all funds has decreased 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.

    
    

    Trust Funds (600 & 610) Retirement (600)

    The FY21 actuarially determined contribution to the DB plan totals $11,792,492. The Town had

    accumulated $560,945 in prepaid contributions that are partially being used, as approved last year to offset the contribution for FY21. The amounts by employee group are shown below versus the FY20 contribution. Legacy plan costs represent $9,129,104 of the total and the costs for the ongoing plan are $2,663,388.

    
    

    Town DB and DC Retirement Contributions

    
    

    Town Retirement Contributions	FY2020	FY2021	$ Change	% Change
    General Employee DB	$3,276,537	$3,560,240	$283,703	8.66%
    Lifeguards DB	210,518	215,911	5,393	2.56%
    Police DB	3,303,037	3,653,689	350,652	10.62%
    Fire‐Rescue DB	4,001,559	4,362,652	361,093	9.02%
    Total DB Contribution	$10,791,651	$11,792,492	$1,000,841	9.27%
    Total DC Contribution	$559,296	$506,666	($52,630)	‐9.41%
    Total Town DB and DC Contribution	$11,350,947	$12,299,158	$948,211	8.35%

    

    Executive Summary

    Town of Palm Beach

    

    The Town Council approved using a portion of the prepaid contribution $560,945 made in FY19 to offset the effects of the compensation study on the retirement costs that would impact FY21. The amount used in FY21 will be $126,945. The remaining balance has been preserved to use in FY22 to offset a portion of the cost of the expected investment losses from FY20. The above numbers do not reflect the $126,945 reduction. The historical 10‐year trend in Town actuarially determined employer contributions (ADEC) for the defined benefit pensions are shown on the chart below.

    

    

    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 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 below:

    
    

    Employer Defined Contribution Funding

    
    

    DC Contributions	FY2017 Actual	FY2018 Actual	FY2019 Actual	FY2020 Budget	FY2021 Budget
    General	$684,688	$467,062	$445,592	$608,756	$620,535
    Lifeguards	10,357	5,844	5,155	8,561	6,386
    Police	0	0	0	0	0
    Fire‐Rescue	69,824	0	0	0	0
    Total	$764,869	$472,906	$450,747	$617,317	$626,921

    Health Insurance (OPEB) Trust (610)

    The actuarially determined transfer to the OPEB trust from the General Fund in the FY21 budget is $429,858. This amount is $6,844 more than FY20. The investment return assumption is 6%. The funded ratio in the actuarial report was 107.4%.

    The Town’s balance in the OPEB trust fund continues to be well ahead of other government agencies across the country.

    

    Executive Summary

    Town of Palm Beach

    

    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.

    Tentative Millage Rate

    
    

    Resolution No. 45‐2020 adopting a tentative millage rate of 3.0681 is included in the backup. This rate is set slightly higher than the proposed rate of 2.9962 in case changed circumstances and/or Town Council decision later this summer require the final millage rate to be set higher than our proposed rate. Florida law requires a first class mailing to all taxpayers if the millage rate is increased above the tentative millage rate adopted by the Town Council prior to the September public hearings. The final millage rate will be set at the public hearings in September.

    
    

    Long‐Term Financial Plan

    
    

    The Long‐Term Financial Plan (LTFP) has been updated with the FY20 adopted budget and the FY21 proposed budget. The entire document including the trend analysis, current financial condition, 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 the forecast with property tax revenue used to balance the forecast in each year. The FY22 forecast contains a property tax revenue increase of 2.15%. A taxable value increase of 4.41% in FY22, would reflect a decrease of 2.16% in the millage rate and would result in a $0 increase per million of taxable value. It is far too early in the process to predict the total impact of the COVID‐19 pandemic recession and its effect on Town revenues and expenditures and ultimately what the property tax increase will be for FY22.

    
    

    	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29
    Revenues	83,203,392	85,294,006	88,270,677	91,765,020	94,829,851	97,407,721	99,171,430	101,435,203
    Expenditures	83,203,392	85,294,006	88,270,677	91,765,020	94,829,851	97,407,721	99,171,430	101,435,203
    Surplus/(Deficit)	(0)	0	(0)	0	0	0	0	(0)
    Property Tax Revenue % Increase	2.15%	2.55%	4.13%	4.88%	3.88%	2.99%	1.58%	2.42%

    
    

    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 FY21 budget and millage rate. The proposed public hearing meeting dates are as follows: These dates are presented in the Millage Rate Resolution and provided to the Property Appraiser.

• First Public Hearing – September 10, 2020 at 5:01pm

• Second Public Hearing – September 16, 2020 at 5:01pm

Executive Summary

Town of Palm Beach

Conclusion

This concludes the executive summary portion of the FY21 proposed budget. Please see the documents that follow this summary for detailed information about the FY21 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

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Fund Budget Overview

Town of Palm Beach

Fund Budget Overview

Town of Palm Beach

FUND BUDGET OVERVIEW

FUND BUDGET OVERVIEW

FY21 Total Budget‌

$275,793,694

General Fund

$80,915,573

Underground Utility Fund

5

5

$56,715,145

Debt Service Funds Total

$7,307,810

Capital Project Funds Total

$38,085,023

Enterprise Fund Total

$38,879,983

Internal Service Fund Total

$13,845,310

Trust Fund Total

$40,044,850

2016A and 2019

Revenue Bonds

$6,582,397

CIP PAYGO Fund

$10,400,297

Marina Fund

$29,688,823

Risk Insurance Fund

$5,644,682

Employee Retirement Fund

$36,414,992

2016A and 2019

Revenue Bonds

$6,582,397

CIP PAYGO Fund

$10,400,297

Marina Fund

$29,688,823

Risk Insurance Fund

$5,644,682

Employee Retirement Fund

$36,414,992

2016B Revenue Bonds

$725,413

Coastal Protection Fund

$27,247,808

Par 3 Fund

$2,929,155

Health Insurance Fund

$5,367,532

Health Insurance Trust (OPEB)

$3,629.858

2016B Revenue Bonds

$725,413

Coastal Protection Fund

$27,247,808

Par 3 Fund

$2,929,155

Health Insurance Fund

$5,367,532

Health Insurance Trust (OPEB)

$3,629.858

Worth Avenue Assessment

$336,918

Building Enterprise Fund

$6,262,005

Equipment Replacement Fund

$2,833,096

Worth Avenue Assessment

$336,918

Building Enterprise Fund

$6,262,005

Equipment Replacement Fund

$2,833,096

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GENERAL FUND REVENUES AND EXPENDITURES‌

Town of Palm Beach, Florida General Fund Revenues and Expenditures

Budget Comparison Fiscal Years 2020 - 2021

Town of Palm Beach, Florida General Fund Revenues and Expenditures

Budget Comparison - with Building Department Fiscal Years 2020 - 2021

REVENUES BY TYPE‌

Revenues by Type

Ad Valorem Taxes

$57,134,000 73.5%

Interfund Transfers 1,304,500

1.7%

Miscellaneous

449,500

General Use Tax 6,351,000

8.2%

Licenses/Permits Intergovernmenta4l,290,100

0.6%

Interest

Charges for

923,300

5.5%

904,773

1.2%

Fines

Services 5,384,700

and 6.9%

1.2%

Grants

32,700

Forfeitures 916,000

1.2%

0.0%

Budget

Projected

Budget

Variance

Total

Budget