TOWN OF PALM BEACH, FLORIDA

COMPREHENSIVE ANNUAL BUDGET FISCAL YEAR 2021

(October 1, 2020 - September 30, 2021)

Mayor and Town Council Gail L. Coniglio, Mayor

Margaret A. Zeidman, Town Council President Bobbie Lindsay, Town Council President Pro-Tem Julie Araskog, Town Council Member

Lew Crampton, Town Council Member

Danielle H. Moore, Town Council Member

Town Manager Kirk Blouin

Prepared by the Finance Department Jane LeClainche, Finance Director (561) 838-5400

www.townofpalmbeach.com

TOWN

ORGANIZ

TOWN

ORGANIZ

OF PALM BEACH‌‌

ATIONAL STRUCTURE

CITIZENS OF PALM BEACH

ELECT

MAYOR

Gail L. Coniglio

MAYOR

Gail L. Coniglio

TOWN COUNCIL

PRESIDENT

Margaret A. Zeidman

PRESIDENT PRO‐TEM

Bobbi Lindsay

Julie Araskog

Lew Crampton

Danielle H. Moore

PRESIDENT

Margaret A. Zeidman

PRESIDENT PRO‐TEM

Bobbi Lindsay

Julie Araskog

Lew Crampton

Danielle H. Moore

APPOINTS

TOWN ATTORNEY

John C. Randolph

DEPUTY TOWN MANAGER

Jay Boodheshwar

POLICE CHIEF

Nicholas Caristo

DIRECTOR OF FINANCE

Jane Le Clainche

DIRECTOR OF HUMAN RESOURCES

Danielle Olson

TOWN MANAGER

Kirk Blouin

ADVISORY BOARD AND COMMISSIONS

DIRECTOR OF PUBLIC WORKS

H. Paul Brazil

DIRECTOR OF PUBLIC WORKS

H. Paul Brazil

FIRE‐RESCUE CHIEF

Darrel Donatto

FIRE‐RESCUE CHIEF

Darrel Donatto

DIRECTOR OF PLANNING, ZONING AND BUILDING

Vacant

DIRECTOR OF PLANNING, ZONING AND BUILDING

Vacant

DIRECTOR OF BUSINESS DEVELOPMENT & OPERATIONS

Carolyn Stone

DIRECTOR OF BUSINESS DEVELOPMENT & OPERATIONS

Carolyn Stone

Guide for Readers‌

Town of Palm Beach

GUIDE FOR READERS

The following information might be helpful to the reader in finding information in the budget document for programs, services and financial information. The Town of Palm Beach Budget compiles financial and service delivery data in a single source document for easy reference. This guide explains the budget format and will assist in locating information that may be of particular interest. The budget is intended to serve four purposes.

THE BUDGET AS A POLICY DOCUMENT

As a policy document, the Budget indicates what services the Town of Palm Beach will provide during the upcoming fiscal year, and the reasons for these services. The Budget provides goals and objectives for each organizational unit in the Town of Palm Beach as well as the performance measures upon which programs will be monitored for the forthcoming fiscal year. All Town of Palm Beach funds are described in detail in their respective sections.

THE BUDGET AS AN OPERATIONS GUIDE

As an operations guide, the budget indicates how departments and funds are organized to provide services that will be delivered to the community. The Departments’ budget sections provide a mission statement, goals and objectives, organization chart, authorized personnel, revenue and expenditure summaries with descriptions, and performance measures for each Town of Palm Beach Department.

THE BUDGET AS A FINANCIAL PLAN

As a financial plan, the budget outlines the cost of the Town of Palm Beach services and how they will be funded. The Revenues and Expenditures Section provides an overview of the Budget including major revenue and expenditure breakdowns and categories for the following Funds: General, Special Revenue Funds, Debt Service, Capital, Enterprise, Internal Service Activity and Trust & Agency. The introductory section includes a budget message, Town‐wide goals, demographic information, assessed value and millage rate information, Town history, a discussion of the Town of Palm Beach accounting structure and financial policies, a description of the budget preparation process and the financial structure. The budget summary section details the approved budget as well as a comparison of financial activity over a multi‐year period with an analysis of the Town reserves.

THE BUDGET AS A COMMUNICATIONS DEVICE

The Budget is designed to be user friendly with summary information in text, charts, tables and graphs. A glossary of financial budget terms is included for your reference. In addition to the reader’s guide, the table of contents provides a listing of sections in the order in which they appear in this document. The statistical section includes miscellaneous information relevant to the Town of Palm Beach. Should you have a question about the Town of Palm Beach that this document does not answer, please feel free to call The Finance Department at (561) 838‐5444. This Budget Document is available on the Town’s web site, www.townofpalmbeach.com.

Guide for Readers

Town of Palm Beach

A STEP BY STEP GUIDE

Given its size and the variety of information it contains, the budget document can be an overwhelming undertaking to review. The purpose of this section is to provide the reader with a guide to the document’s contents: where and how to find the information and how to understand or use the information.

The budget document has been prepared in a summary format intended to be easily understood by the general public. The following describes each of its major sections:

1. Introduction

   The budget message or transmittal letter is the best place to start. It is most important in understanding where we have been and where we are going in the upcoming year. The letter provides a broad perspective of services provided and discusses taxes and millage rates, changes in operations, significant differences in revenues and expenditures, and the focus and direction of the budget year.

   
   

   The introduction section also includes general information about the Town, its budget philosophy and process, financial policies (which form the foundation of the Town’s budget development and financial management processes), and other general information.

   
   

2. Budget Summary, General Fund, Revenues, Expenditures, Departmental Tabs and Other

   The Budget Summary, General Fund, Revenues, Expenditures including Departmental and Other tabs include various presentations of the general fund budget. The Budget Summary section includes summary budget information for all funds and an analysis of Town reserves. The General Fund section includes a financial trend analysis of Revenues and Expenditures. The Revenues tab includes a detailed five‐year general fund revenue history, as well as narrative and charts regarding major general fund revenue history. The Expenditures tab includes an exhibit containing four years of expenditure history by program, as well as summary budget charts.

   
   

   An overview of each department/program, the largest portion of the General Fund budget, is included in this section. Each department’s section may include the following: A revenue and expenditure summary, personnel complements, an organizational chart, mission statement, goals and objectives, performance measures and workload indicators.

   
   

3. Special Revenue, Debt Service, Capital, Enterprise, Internal Service and Trust & Agency Funds These sections include budget summaries, program descriptions, trend analyses and income statement analyses for the Town’s governmental (other than general), enterprise, internal service and trust & agency funds.

   
   

4. Appendix

   The appendix includes property tax and millage rate schedules, donation reserve account detail, financial policies, historical staffing levels, and other exhibits that may be helpful to the reader.

   ********************

   We sincerely hope this “how‐to” has aided in finding and understanding information contained in the Town’s budget. If any point is unclear, or if additional information is necessary, please call the Finance Department at (561)838‐5444. Should the same requests repeatedly occur, we will make an effort to incorporate clarifications in next year’s budget document.

   
   

   
   

   

   
   

   GOVER N M EN T FIN AN C E OFFIC ER S ASSOC IATION

   D istinguished

   Budget Presentation Aw ard

   PRESENTED TO

   
   

   Town of Palm Beach

   Florida

   For the Fiscal Year Beginning

   
   

   October I, 20I9

   
   

   

   Executive Director

   
   

   

   
   

   (This page intentionally left blank)

   
   

   TABLE OF CONTENTS‌

   Introduction

   *This Table of Contents includes hyperlinks to help navigate the document better. To use, click the mouse on the section you would like to jump to. You can also click on the image of the palm tree in the op right corner of the pages beginning on page 2 to navigate back to the Table of

   Organization Structure

   Contents.

   ........................................

   .......................................................................................... ii

   Guide for Readers iii

   Budget Message 1

   Strategic Planning and Key Results Measurement 19

   Introductory Information

   Map 27

   Town Overview/Demographics 28

   Town History 29

   Taxable Value and Millage Rate 31

   Financial Policies 35

   Budget Preparation Process. 40

   Budget Calendar. 45

   Financial Structure 46

   Long‐Term Financial Plan Forecast 51

   Budget Summary

   Fund Budget Overview 65

   Budget Summary by Fund Type, Revenues and Expenditures 67

   Summary of Major Revenues by Fund Type 69

   Summary of Expenditure Classifications by Fund Type 71

   Reserve Analysis 73

   Capital Expenditures 82

   General Fund

   General Fund Revenues and Expenditures Budget Comparison 85

   Revenues

   General Fund Revenues 87

   Major Revenue Sources 93

   Expenditures

   General Fund Expenditures 103

   Legislative

   Legislative (111) 110

   General Government

   General Government (113) 112

   Town Manager

   Town Manager’s Office Organizational Chart 114

   Administrative Management (121) 116

   Town Clerk

   Town Clerk (131) 120

   Town Clerk Revenue and Expenditure Summary 120

   Advice and Litigation

   Advice and Litigation (122) 128

   Information Technology

   Information Technology Organizational Chart 130

   Information Technology (125) 130

   Human Resources

   Human Resources Organizational Chart 136

   Human Resources (123) 138

   Finance

   Finance Organizational Chart 146

   Finance Department Revenue and Expenditure Summary 149

   Financial Management (141) 151

   Purchasing (144) 155

   Planning, Zoning and Building

   Planning, Zoning and Building Organizational Chart 160

   Planning, Zoning and Building Department Revenue and Expenditure Summary 162

   Planning and Zoning (211) 164

   Landmarks Preservation (214) 167

   Fire Prevention (215) 169

   Code Enforcement (216) 172

   Recreation

   Recreation Organizational Chart 176

   Recreation Department Revenue and Expenditure Summary 178

   Recreation Administration (311) 180

   Tennis (312) 182

   Recreation Center (313) 185

   Fire‐Rescue

   Fire‐Rescue Department Organizational Chart 190

   Fire‐Rescue Department Revenue and Expenditure Summary 192

   Fire Administration (411) 194

   Operations (417) 197

   Training (418) 200

   Ocean Rescue (419) 203

   Police

   Police Department Organizational Chart 206

   Police Department Revenue and Expenditure Summary 209

   Administrative Management (421) 211

   Organized Crime Vice and Narcotics – OCVAN (422) 215

   Records Information System Unit (423) 218

   Training and Community Relations Unit – TCR (424) 220

   Communications Unit (425) 223

   Crime Scene/Evidence Unit (426) 225

   Patrol (428) 227

   Criminal Investigation Unit (429) 231

   Parking Control Unit (430) 233

   Public Works

   Public Works Department Organizational Chart 236

   Public Works Department Revenue and Expenditure Summary 239

   Administrative Management (511) 241

   Street Repair and Maintenance (521) 243

   Traffic Control (523) 245

   Street Lighting (524). 247

   Storm Sewer Maintenance (531) 249

   Sanitary Sewer Maintenance (532) 252

   Sanitary Sewage Treatment (533) 254

   Residential Collection (541) 255

   Commercial Collection (542) 257

   Refuse Disposal (543) 259

   Yard Trash Collection (544) 260

   Recycling (545) 262

   Beach Cleaning (546) 264

   Landscape Maintenance (551) 265

   Facility Maintenance (554) 267

   General Engineering Services (561) 269

   Right of Way Inspections (565) 273

   Equipment Operation and Maintenance (571) 275

   Other

   Library Services (321) 278

   Transfers to Other Funds (611 to 625) 279

   Emergency Management (710) 280

   Contingent Appropriations (711) 281

   Special Revenue Fund

   Town‐wide Underground Utilities Fund (Fund 122) 283

   Debt Service

   Debt Administration 285

   2016A and 2019 Revenue Bonds (Fund 205) 291

   2016B Worth Avenue Revenue Bond (Fund 206) 292

   Capital Funds

   Capital Funds 293

   Impact of Capital Investments on Operating Budget 294

   Capital Projects by Project Type and Fund 295

   Capital Improvement Fund (Fund 307)

   Pay‐as‐you‐go Capital Improvement Fund 297

   Five Year Capital Improvement Pay‐as‐you‐go/Facilities Program 299

   Project Fact Sheets

   • A6 Sanitary Sewer Pump Station Improvements 300

   • Pavement Management Town‐wide Following Undergrounding Phases 301

Comprehensive Coastal Management Plan Bond Proceeds Construction Fund (Fund 309)

CCMP FY20 Accomplishments and FY21 Action Plan 303

Comprehensive Coastal Management Project Fund 312

Coastal Management Program Budget 315

Worth Avenue Assessment District (Fund 311)

Worth Avenue Maintenance 317

Marina Enterprise Fund (Fund 401)

Marina Enterprise Fund Organization Chart 320

Marina Revenue and Expense Summary 323

Par 3 Enterprise Fund (Fund 402)

Par 3 Enterprise Fund Organization Chart 330

Par 3 Revenue and Expense Summary 333

Par 3 Golf Course 5‐year Capital Improvement Plan 340

Building Enterprise Fund (Fund 405)

Building Enterprise Fund Organization Chart 342

Building Fund Revenue and Expense Summary 344

Permit Issuance (212) 346

Inspection and Compliance (213) 349

Internal Service Funds

Self Insurance Fund – Risk Management (Fund 501) 351

Self Insurance Fund – Health Benefit (Fund 502) 355

Equipment Replacement Fund (Fund 320) 357

Trust and Agency Funds

Retirement Fund (Fund 600) 361

Retirement Fund Revenue and Expense Summary 371

Health Insurance Trust (Fund 610) 373

Health Insurance Trust Revenue and Expense Summary 375

Retiree Sliding Scale Insurance Premium Rates 2020 377

Appendix

Authorized Positions 381

Donation Reserve Account Summary 389

Financial Policies

Fund Balance 391

Budgetary Control 396

Designation of General Fund Balance ‐ Liability Related to Compensated Absences Leave Balances 397

Contingency Reserve – General Fund 398

Reserve for Encumbrances, Continuing Appropriations, and Prepaid Expenses 399

Revenue Shortfall Plan 400

Debt Management Policy 402

Contingency Reserve – Capital Fund 403

Contingency Reserve – Equipment Replacement Fund 404

Equipment Replacement Reserve 405

Contingency Reserve – Enterprise Fund 406

Repair and Replacement Reserve – Town Marina Enterprise Fund 407

Town Marina Enterprise Fund Unrestricted Net Position 408

Repair and Replacement Reserve – Golf Course Enterprise Fund 409

Equipment Replacement Reserve – Golf Course Enterprise Fund 410

Contingency Reserve – Risk Fund 411

Reserve for Catastrophic Exposures/Emergencies – Risk Fund 412

Contingency Reserve – Health Insurance Fund 413

Funding Policy for the Town of Palm Beach Retirement System 414

Index

Index 417

Glossary

Glossary 421

Town of Palm Beach Executive Summary‌

PROPOSED BUDGET FOR FISCAL YEAR 2020‐2021

iii

iii

1

Executive Summary

Town of Palm Beach

Town of Palm Beach, Florida

October 1, 2020

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

The FY2021 adopted 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 into FY21 which added extra pressure to find ways to cut expenditures.

This 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 provide a budget that delivers a $0 increase in property taxes for homestead property owners for the 3rd year in a row.

General Fund

FY21 Budget Presentation

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 FY21 is 18.17%. This means for every $100 paid in taxes only $18.17 stays in the Town.

  
  

  Below are the taxing districts and the adopted millage rates for FY21 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 71.68% of all taxes paid in the Town followed by the Town of Palm Beach at 18.17% with the other taxing districts making up the balance of 10.16%.

  
  

  Taxing Authority	Adopted Millage Rate	Taxes Per $1 % of Total Million Value Tax Bill		Paid by Palm Owners
  Palm Beach County School District	7.0100	$7,010	42.50%	$133,672,568
  Palm Beach County	4.8124	$4,812	29.18%	$91,766,886
  Palm Beach	2.9962	$2,996	18.17%	$57,134,058
  Health Care District	0.7261	$726	4.40%	$13,845,885
  Children Services	0.6497	$650	3.94%	$12,389,025
  South Florida Water Mgmt	0.2295	$230	1.39%	$4,376,299
  Everglades Construction	0.0380	$38	0.23%	$724,616
  Florida Inland Navigation	0.0320	$32	0.19%	$610,203
  Grand Total	16.4939	$16,494	100.00%	$314,519,540

  
  

  The total taxes paid per million of taxable value in the Town in FY21 was $16,494. Of that amount, $2,996 stayed in the Town to pay for services and the remaining $13,498 went to other taxing districts. A breakdown by taxing district for a $1 million homesteaded property using the FY21 tax rates is shown on the following page.

  

  

  Executive Summary

  Town of Palm Beach

  

  
  

  

  Town of Palm Beach, $2,996

  
  

  S. Fl Water Mgmt,

  $230

  Palm Beach County Schools, $7,010

  Everglades Construction, $38

  Children Svcs,

  $650

  
  

  Palm Beach County, $4,812

  
  

  Health Care District, $726

  
  

  Fl Inland Navigation Dist, $32

  
  

  FY21 Millage Rate

  Appearing on the following page is a millage rate table that showing the adopted FY21 millage rate versus the FY20 millage. The adopted 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 final 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 held 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	$ 57,134,058	$ 1,154,619	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	904,715	(325,285)	‐26.45%
  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.

  • 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.

    

    

    Executive Summary

    Town of Palm Beach

    

  • 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%

    
    

    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

    

    

    Executive Summary

    Town of Palm Beach

    

    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 did not propose a COLA increase for FY21 due to the negative CPI. An increase the ranges of 2.5% at a cost of $91,071 is included in the budget 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 Palm Beach for the sewage treatment and disposal costs of ($70,807). We took out all contractual increases since the June CPI was .7%.

  • 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 April 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.

    

    

    Executive Summary

    Town of Palm Beach

    

  • 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 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 $52,857 which will remain in the Building Enterprise Fund as a reserve in case of a downturn.

  
  

  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

  

  

  

  Executive Summary

  Town of Palm Beach

  

  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 approximately $1.5 million at FY20 year‐end. This surplus is the result of vacant positions, and savings from the implementation of the compensation study.

  
  

  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 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 below 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.

  
  

  Department/Fund	FY20	FY21
  Full Time Staffing
  Town Manager	7.00	7.00
  Information Systems	8.00	8.00
  Human Resources	3.77	3.77
  Finance	14.69	13.69
  Planning & Zoning	25.75	9.10
  Fire‐Rescue	78.40	78.40
  Police	100.85	96.85

  

  

  Executive Summary

  Town of Palm Beach

  

  
  

  Public Works	80.84	79.88
  Recreation	7.50	7.90
  Town Docks	1.82	1.57
  Par 3 Golf Course	7.60	7.40
  Building Fund	0.00	17.65
  Underground Utility Fund	1.00	1.00
  Coastal Management Fund	1.00	1.00
  Risk Fund	1.63	1.78
  Health Fund	0.92	1.12
  OPEB Trust	0.83	0.98
  Retirement Fund	1.16	0.66
  Total Full Time Staffing	342.76	337.75
  Part Time No Benefit Staffing
  Fire‐ Rescue (Ocean Rescue)	3.00	3.00
  Police	1.35	1.35
  Recreation Center	11.17	1.78
  Tennis	1.37	1.38
  Town Docks	1.50	0.00
  Par 3 Golf Course	1.10	.31
  Total Part Time No Benefits Staffing	19.49	7.82
  Total Town Staffing	362.25	345.57

  
  

  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).

  

  

  Executive Summary

  Town of Palm Beach

  

  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, begin construction of Phases 3 South, 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 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.

  
  

  In 2020 the Town issued $31,000,000 in Revenue Bond through CenterState Bank for the Marina Construction project. This bond is secured by non‐ad valorem revenues. The rate on the bonds is 2.25%.

  
  

  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	Refunding the Debt for the First Phase of the ACIP
  2016B	$10,255,000	Worth Avenue Commercial District Project
  2013	$6,670,000	Remaining Balance of Bonds for Second Phase of ACIP
  2018	$54,360,000	General Obligation Bonds for Townwide Undergrounding Project
  2019	$48,730,000	Refunding Revenue Bonds (2013) for Second Phase of ACIP
  2019	$4,660,000	Refunding of Remaining Balance of First Phase of ACIP Debt (2010)
  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 Par 3 Golf Course Fund for the 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.

  
  

  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.

Executive Summary

Town of Palm Beach

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 construction on the new Marina is expected to be completed by September 1, 2021.

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

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

1. The FY21 budget shows a small ending profit as mentioned above for the year. The LTFP forecast

   

   

   Executive Summary

   Town of Palm Beach

   

   shows improvement to the net assets of the fund. We will closely monitor this fund to ensure that there is improvement in the reserves.

   
   

   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 $6,209,148 including a transfer to the General Fund of $3,200,000, which is for the allocated 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 $138,720 there will be a remaining balance of $52,857, 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.

   

   

   Executive Summary

   Town of Palm Beach

   

   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	$617,317	$626,921	9,604	‐9.41%
   Total Town DB and DC Contribution	$11,408,968	$12,419,413	$1,010,445	9.42%

   
   

   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.

   
   

   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.

   

   

   Executive Summary

   Town of Palm Beach

   

   Long‐Term Financial Plan

   
   

   The Long‐Term Financial Plan (LTFP) has been updated with the FY21 final 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.

   
   

   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%

   
   

   Conclusion

   
   

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

   
   

   Respectfully Submitted,

   

   Kirk Blouin Town Manager

   
   

   cc: Jay Boodheshwar, Deputy Town Manager Department Directors

   

   
   

   STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT‌

   In 2003, the Town of Palm Beach developed and adopted a strategic plan. The development of the strategic plan involved input from elected officials, citizens, the business community, and staff. In conjunction with the Town’s strategic plan, staff developed an organizational vision statement, which included input from all employees. Both the strategic plan and the vision statement, in addition to annually adopted Town‐wide goals, help us to form our department and program goals. Outlined in the following pages is a summary of our strategic plan, organizational vision, and departmental goals for FY21.

   
   

   STRATEGIC PLANNING

   In 2001, the Town Council formed a Strategic Planning Board comprised of then Mayor Lesly Smith and four other Town residents. The board held a series of meetings and community forums to receive input from citizens, the business community, staff and others. The strategic plan was formally approved by the Town Council in 2003. The strategic plan is summarized below:

   
   

   A LEGACY WORTH KEEPING

   Palm Beach is a fully developed community, world renowned for its extraordinary beauty, quality of life, and small‐town character. Our permanent and seasonal residents love our barrier island community and are determined to preserve our legacy. We do not seek to change Palm Beach, but rather to protect our community’s assets, correct any deficiencies, and to manage inevitable change so as to maintain our tradition of excellence.

   
   

   As we envision our future ten years from now, we see Palm Beach remaining true to the inspired legacy of our founders, a Mediterranean‐style mecca of stunning architecture and natural beauty, acclaimed shopping, restaurants and hotels, a cosmopolitan culture, and an involved citizenry committed to civic and philanthropic causes and excellence in Town Government.

   
   

   QUALITY AND RESPONSIVE TOWN GOVERNMENT

   Town government is supported by a respected Mayor and Town Council, a skilled and dedicated staff, and by the active volunteer participation of many citizens. Palm Beach provides residents with the highest level of safety and security through its vigilance and commitment to high quality training and state‐of‐the‐art equipment. The Town has maintained its fiscal strengths with resourceful budgeting and prudent management.

   In the future, we envision...

   Continued high quality services and facilities provided in a responsive, resourceful manner. A structure of government guided by clear mandates and performance goals for Town administration and for appointed boards and commissions, continued technological innovation, and excellent internal and external communication.

   
   

   Pro‐active initiatives and continuous vigilance to anticipate and avert threats to public safety, enabling Palm Beachers to live secure in safe neighborhoods.

   

   
   

   Solid fiscal strength and strong alliances with state and federal partners. Actions will be taken and communicated to residents to instill confidence that optimum services are provided for taxes paid.

   
   

   PUBLIC FACILITIES AND INFRASTRUCTURE

   While completely developed, the Town of Palm Beach recognizes a number of redevelopment challenges and functional deficiencies among its current capital facilities. Traffic has increased and parking is at a premium. Beach erosion has become severe, threatening oceanfront property and diminishing a key scenic and recreational asset. Drainage deficiencies and occasional water shortages continue to pose a threat.

   
   

   In the future we envision...

   
   

   Beaches fully restored and maintained for the protection of oceanfront property, enjoyment of residents, and scenic enhancement.

   
   

   Modernized, reliable infrastructure systems, including improved facilities for water distribution and storm drainage. Capital projects will be completed expeditiously and with an effort to limit the disruption they inevitably will cause to adjacent property owners.

   
   

   Convenient network of roads and parking, less hampered by congestion and sufficient to meet local needs without encouraging additional traffic or visitation.

   
   

   CHARACTER AND QUALITY OF LIFE

   While Palm Beach is built out, growth continues in the form of redevelopment and changes in use raising questions and concerns about over‐development, scale and our historic legacy. The Town is proud of its lush landscaped setting, its historic architecture, and its array of shopping and other amenities, but concerns are expressed about expanded tourism, visitation and traffic, straining our limited service capacity. The Town recognizes that among our greatest resources are our people and their involvement in civic groups, charities, cultural activities, and faith‐based organizations.

   
   

   In the future we envision...

   
   

   A community that has guarded against over‐development, encouraging redevelopment consistent in scale with existing neighborhoods, reflective of our heritage.

   
   

   A town with a rich menu of cultural choices, enabling Palm Beach to continue to combine the intimacy and convenience of small town life with the cultural sophistication and variety of a city.

   
   

   Palm Beach will remain a friendly community which embraces its diversifying population, nurtures young families and children, and welcomes new residents and visitors. Palm Beachers will continue their heritage of support to worthy causes and their involvement in civic affairs creating new opportunities for all to participate fully in the life of the community.

   

   
   

   TOWN STAFF VISION

   In 2005, Town staff developed and implemented an organizational vision and values statement. A Visioning Committee of 20 employees representing each department and every level of authority developed the draft vision and values statement that was reviewed by all Town employees. The final vision and values statement is shown below:

   OUR VISION

   The Town of Palm Beach delivers the highest quality service by continuously improving and always striving to be the standard by which others are measured.

   Our Town Rich in history… Rich in service…

   Always exceptional!

   OUR VALUES

   The employees of the Town of Palm Beach commit to and are guided by the following values: Respect for everyone

   Highest ethical standards Cooperation and teamwork Commitment to quality Spirit of innovation

   Open, timely communication Personal responsibility and accountability

   This is a commitment by the employees of the Town of Palm Beach. Our success as a team is dependent upon our actions being consistent with the vision & values we profess.

   
   

   THE VISION/STRATEGIC PLAN/PERFORMANCE MEASUREMENT PROCESS

   The Town‐wide vision and strategic plan developed by the Strategic Planning Board and the organizational vision developed by Town staff complement each other. The Staff recognizes the Town’s rich history and commitment to excellence that has made the Town an exceptional place to live and work.

   
   

   The strategic plan and organizational vision guide the decision making process as the elected officials and staff develop annual Town‐wide, department and program goals, and the annual budget. We then use performance measures to track our progress in achieving the goals that have been set.

   
   

   The process is depicted in a flowchart below and elements of the process are described in greater detail in this section. The department and program performance measurement methodology are described in greater detail in the department sections of this document.

   

   
   

   

   THE VISION/STRATEGIC PLAN/GOALS AND PERFORMANCE MEASUREMENT PROCESS

   
   

   
   

   Vision

   • Town‐wide and Organization Vision

Strategic Plan

• Quality and Responsive Town Government

• Public Facilities and Infrastructure

• Character and Quality of Life

  
  

  
  

  Town‐wide Goals

  • Town‐wide goals set by Town Council

    
    

    
    

    Budget

    • Annual FY21 Budget

      
      

      
      

      Department Goals

  • Department and Program Goals

    
    

    
    

    Performance Measures

• Performance Measures

TOWN‐WIDE BUDGET PRIORITIES FOR FY2021

The Town Council’s annual budget priorities for FY2021 are outlined below.

In addition to the Town Council priorities, the Departments developed other major initiatives for the year. The Departmental goals will be reviewed on a continual basis throughout the fiscal year.

The following is a breakdown of the Town Council Priorities and a listing of the departmental objectives that address the Council’s agenda. The table below shows the linkage between the Council’s priority and the Department objectives that will be implemented during the year or have already been implemented. A detailed listing of all departmental objectives and performance measurements can be found in the Department sections of this document.

DEPARTMENT PERFORMANCE MEASURES

The Town departments have adopted goals and performance measures representing the most critical targets for their operations. The other department and program specific results are shown in the department section of the budget document.

Location‌‌

Town of Palm Beach

LOCATION

Palm Beach is located on a barrier island east of West Palm Beach, Florida in Palm Beach County. The land area of the Town is approximately 3.77 square miles with 12.1 miles of coastline on the Atlantic Ocean. The Town is also bound on the west by 15.9 miles of Intracoastal frontage (Lake Worth), on the north by the Palm Beach Inlet, and on the south by the Town of

South Palm Beach.

Town Overview/Demographics‌

Town of Palm Beach

TOWN OVERVIEW/DEMOGRAPHICS

Town History‌

Town of Palm Beach

TOWN HISTORY

According to early settler accounts, Palm Beach received its name from a shipwreck named the “Providencia”. The ship washed ashore in January of 1878 with a load of coconuts bound from Havana to Barcelona. Early settlers lost no time claiming salvage and planting the coconuts, which were not native to South Florida in an effort to launch tropical South Florida on a commercial coconut industry.

In 1893 millionaire industrialist, Henry M. Flagler and his second wife honeymooned in St. Augustine. Impressed with the beauty and history of the area, he envisioned an “American Riviera”. Flagler left home at age 14 with an eighth‐grade education. Later, with John D. Rockefeller and Samuel Adams, he founded Standard Oil, and the rest is history. Having invested large sums in several hotels in the St.

Augustine area, Flagler extended his holdings southward. He bought and improved existing railways anticipating the tremendous potential for South Florida. His railway was named the Florida East Coast Railway.

Flagler’s agents soon were buying acres of land on the island of Palm Beach. Many early homesteaders found themselves very wealthy, as orders had been given to buy “at any price”. Ground was broken May 1, 1893, and on February 11, 1894, the Royal Poinciana Hotel, the largest wood structure in the world, opened in Palm Beach and welcomed 17 guests. A month after the opening, the first train pulled from the station on Loftin Street (later used as an office and warehouse by the Town of Palm Beach) in West Palm Beach on the newly built bridge across Lake Worth to deliver vacationing residents, some in their own private railway cars, to the new hotel. Henry Flagler built his own house in 1902, Whitehall, as a wedding present for his third wife, Mary Lily Kenan.

Whitehall is now the Henry Morrison Flagler Museum and is open to the public.

Flagler continued to develop the

Royal Poinciana Hotel property and built a second hotel, the Palm Beach Inn, on the beachfront portion of the Royal Poinciana’s property. When the Palm Beach Inn burned in 1903 the first Breakers Hotel was built. Destroyed by a fire in 1925, it was rebuilt as the splendid hotel it is today. The Breakers is listed in the National Register of Historic Places.

Town History

Town of Palm Beach

On April 17, 1911, a meeting of the registered and qualified voters of Palm Beach, Florida, was held at the Palm Beach Hotel for the purpose of incorporating the Town of Palm Beach. Thirty‐four qualified voters voted to incorporate the Town.

In 1918, before the end of World War I, Addison Mizner, an established New York architect who was born in California and studied in Spain, accepted an invitation from Paris Singer to recuperate from a leg injury in Palm Beach. As Mizner’s health improved his boredom turned into creativity, and he transformed Singer’s bungalow into a Chinese villa. The conversion was a success, but Singer looked forward to a larger project. Having established two hospitals in France, Paris Singer decided to build a convalescent home in Palm Beach for service men returning from the war. The buildings were completed, but before the opening of the clubhouse in January 1919, the “Touchstone Convalescent Club” had been transformed into the exclusive Everglades Club on Worth Avenue where it still is today. Mizner’s era had begun and was to continue along the southeast Florida coast through the 1920's.

The Town of Palm Beach soon began long range plans to develop and protect this island paradise, and the beauty which Town residents now enjoy is due to the efforts of several generations of planning activity. In 1929, the Garden Club of Palm Beach joined the Town and formally sponsored the preparation of a Town Plan. The overall goal of the 1929 Plan stated the following:

“One attractive and well managed public bath and beach, the concentration of general traffic upon a limited number of streets, beautification without especial reference to main arteries of travel, and a system of leisurely and convenient byways free from automobiles, punctuated with gardens: this is a plan which will localize recreation seeking crowds, discourage trespassing, and provide safety and quiet for residents of Palm Beach.”

Also included in the plan was the following statement:

“There are many communities which can be said to be beautiful. The places in which charm is the additional attribute are very few. The element of charm is the thing, which lifts a community out of the ordinary and makes it distinctive. The attribute of charm may be produced by an intelligent development of physical advantages in an unusual way.”

Today’s Comprehensive Plan in Palm Beach builds on the early foundation as an effort to preserve the quality and beauty of Palm Beach.

The Town of Palm Beach has 8,371 registered voters in 2020 with approximately 8,321 full‐time residents. The population swells to approximately 25,000 during “season” which is from November to April. Residents and visitors enjoy the very best in dining, shopping, and luxurious surroundings. Worth Avenue shops attract visitors worldwide.

In 2011, the Town celebrated its Centennial with a season full of activities and events. A Centennial Commission was formed to engage with the community, residents and businesses alike, to identify ways to celebrate the 100th anniversary of the Town's incorporation on April 17, 2011.

TAXABLE VALUE AND MILLAGE RATE‌

The Town Council approved a millage rate of 2.9962 for FY21, a decrease from the FY20 millage rate of 3.0681. Taxable value increased 4.68% to $20,072,463,151 for FY21. Ad Valorem revenue of

$57,134,058 is included in the FY21 budget. Town adopted final millage rate is above rollback but below maximum millage rates. The increase in tax revenue from the rollback rate is $199,999. The chart below identifies the millage rate options available to the Town and the Town’s adopted final millage rate.

The majority maximum millage rate is the prior year rolled‐back rate adjusted to the rolled back rate if the prior year majority vote rate had been levied. This newly calculated rolled‐back rate is then adjusted by the percentage change in per capita Florida personal income to arrive at the current year majority vote rate. This year the percentage change is Florida personal income was 1.0322%. The 2/3 vote maximum rate is 110% of the majority maximum rate.

The Town’s taxable value since 2012 has increased 72.7% to all‐time highs as shown in the chart below. The FY15 millage rate increased to supplement the budget for funding of the coastal protection program. Since that time, the millage rate had declined due to increasing values. The tax revenue trend is shown on the chart on the following page.

The Town millage rate represents 18.29% of the total tax bill. The table below illustrates the difference between the FY20 vs. FY21 total tax bill by taxing district for a Palm Beach property owner with a taxable value of $1 million.

Impact on owner of $1 million property

The chart below shows the 10‐year trend in millage rates for all taxing authorities.

The Town’s total millage rate is the lowest in Palm Beach County as shown below.

Property Breakdown by Number of Parcels

The Town has a total of 9,431 total parcels. Residential units total 8,882 or 94% of all parcels. Condominiums and Cooperatives represent the greatest percentage of total parcels in the Town at 67.5% or 6,370 parcels. Single family residential parcels are the second largest group at 2,286 parcels or 24.2% of the total. Commercial and industrial parcels total 402 and the balance is made up of multi‐ family, government, institutional and miscellaneous parcels. There are 3,318 Properties with a Homestead exemption representing 35.2% of the total parcels in the Town.

Property Breakdown by Taxable Value

The taxable value of parcels in the Town totals

$19.2 billion. Residential parcels represent 90.9% of the total value of parcels at

$18,116,514,849 and single family residential represents 63.1% of the total value. Commercial and industrial properties represent 8.5% or $1,688,925,964 of the total value of parcels.

Historical Building Permit Detail

During FY20, the Town revised the permit process and consolidated many building permits for one project into a master permit. The permit application numbers declined because of the new “one permit” process. Total construction valuation for FY20 was $283,152,993 compared to $340,659,012 in FY19. FY18 was the highest construction valuation ever recorded at $347,629,618. We have estimated higher than average permit revenues for FY21, but do not expect the same revenues levels as experienced in FY18 and FY19.

The monthly trend for permit activity and permit valuation for the past five years is shown on the charts below.

FINANCIAL POLICIES‌

The Town of Palm Beach financial policies, compiled below, set forth the basic framework for the overall financial management of the Town. These policies assist the Town Council’s decision‐making process and provide guidelines for evaluating both current activities and proposals for future programs. Copies of Town Council adopted policies are located in the appendix section of this document.

GENERAL POLICIES

• Annually prepare a budget, submit it to the Town Council for approval and publicly issue a budget document.

  
  

• Identify costs and funding sources before recommending approval of capital and operating budgets.

  
  

• Provide for sound financial planning, the best possible bond rating, funding of depreciation and adequate working capital in all funds.

  
  

• Take measures to protect against catastrophic losses through a combination of insurance, funded self‐insurance, and cash reserves.

  
  

• Follow the Town of Palm Beach Charter when preparing the Town’s budget.

  
  

• Estimate and review the long‐term costs associated with proposed new programs or services.

  
  

• Assign all program costs as accurately as practical (including interfund transfers when necessary) utilizing intergovernmental service funds where indicated.

  
  

• Annually review all existing programs to determine whether a recommendation to the Town Council to maintain, decrease, or increase service levels is appropriate.

  
  

• Review annually all administrative policies governing accounting procedures, billing, purchasing, asset use and control, and risk management.

  
  

  OPERATING BUDGET POLICIES

  

• Pay for all current year operating expenses with current year revenues and/or available fund balances.

  
  

• Provide for adequate funding of all pension plans, as determined by the Town’s actuary.

  
  

• Make all purchases in an impartial, economical, efficient, and competitive manner, in accordance with all Federal, State and municipal laws and coordinated through the Purchasing Division.

  
  

• The budget will be controlled at the program level within each department by the applicable department head. Budget amendment requests and transfers of funds between programs will originate from the applicable department director and the Finance Director and shall be subject to the approval of the Town Manager.

  

  
  

• The Town Manager may authorize transfers between departments if the action is deemed necessary to meet the obligations of the Town.

  
  

• Issue a Comprehensive Annual Budget Document after adoption.

  
  

  CAPITAL BUDGET POLICIES

  

• Evaluate the relative merit of each capital project according to the Town Council’s goals and priorities.

  
  

• Rely on internally generated funds and/or grants to finance its capital needs. Debt will be issued for a capital project only in the case of an emergency, or when inclusion of a project in the Town’s pay‐as‐you‐go Capital program will preclude the construction of smaller necessary capital improvements.

  
  

• Thoroughly evaluate and update the Capital Improvement Program on an annual basis providing detailed information regarding operational impacts.

REVENUE MANAGEMENT POLICIES

• Levy taxes to provide the desired level of service.

  
  

• Annually review all revenue schedules, including taxes, rates, licenses, user fees, and other charges, to insure compliance with Town Council’s approved policies.

  
  

• Maintain a diversified revenue base to help mitigate the effects of short‐term fluctuations in any one revenue source.

  
  

• Conservatively estimate annual revenues utilizing established industry standards along with historical trend information.

  
  

• Annually review user fees for the Recreation Programs and the Marina and Golf Course Enterprise Funds and set at a level that is competitive in the market and provides value for Town residents.

  
  

• Review new sources of revenue to fund operating and capital costs consistent with the Town Councils’ goals and priorities.

  
  

  INVESTMENT MANAGEMENT POLICIES

  

• Prepare a cash flow analysis of all funds on a regular basis. Disbursement, collection and deposit of all funds will be scheduled to insure cash availability.

  
  

• Deposit funds only in financial institutions which are insured by the Federal Deposit Insurance Corporation or are approved for full collateralization by the public deposit protection act or other state statutes.

  
  

• Pool cash from all legally permitted funds for investment purposes.

  

  
  

• Maximize the investment rate of return. Adhere to lawful investment options. Safety of the principal shall be the dominant requirement, followed by sufficient liquidity to meet operating requirements, and then yield.

  
  

• Insure timely deposit of all collected revenues.

  
  

  DEBT MANAGEMENT POLICIES

  

• Periodically approve the issuance of Debt Obligations on behalf of the Town to finance the construction or acquisition of infrastructure and other assets for the purpose of meeting its governmental obligations to its residents.

  
  

• Approve the issuance of Debt Obligations to refund outstanding debt when market conditions indicate or for management considerations.

  
  

• Assure that such Debt Obligations are issued and administered in such a manner as to ensure and sustain the long‐term financial integrity of the Town, to achieve the highest possible credit rating and to preserve and enhance the quality of life, safety and welfare of its citizens.

  
  

• Assure that such Debt Obligations shall not be issued or debt proceeds used to finance current operations of the Town except as provided herein.

  
  

• Issue Debt Obligations if necessary to minimize the impact of construction or acquisition of infrastructure and other assets on the budget of the Town.

  
  

• Consider long‐term financing for the acquisition, maintenance, replacement, or expansion of physical assets (including land) only if they have an economic/useful life of at least five years.

  
  

• Not issue debt for periods exceeding the useful life or average useful lives of the project or projects to be financed.

  
  

• Normally rely on internally generated funds and/or grants to finance its capital needs. Debt will be issued for a capital project only in the case of an emergency, or when inclusion of a project in the Town’s pay‐as‐you‐go capital program will preclude the construction of smaller necessary capital improvements.

  
  

• Keep outstanding debt within the limits prescribed by Section 7.01 of the Town Charter.

  
  

  ACCOUNTING, AUDITING AND REPORTING POLICIES

  

• Establish and maintain a high degree of accounting competency. Financial accounting and reporting will be done in accordance with methods prescribed by the Governmental Accounting Standards Board and the Government Finance Officers Association, or their equivalents.

  
  

• Present monthly and annual reports to the Town Council summarizing financial activity.

  
  

• Maintain financial systems to monitor expenditures, revenues and performance of all municipal programs on an ongoing basis.

  

  
  

• Provide full disclosure in annual financial statements and bond representations.

  
  

• Use an independent certified public accounting firm to perform an annual audit.

  
  

• Publicly issue a Comprehensive Annual Financial Report.

  
  

• Comply with all required reporting requirements related to bond issuance terms.

  
  

  RESERVE POLICIES

  

• Maintain a contingency reserve in the General Fund equal to 1% of the proposed General Fund budget to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.

  
  

• Maintain a contingency reserve in the Capital Fund equal to 10% of the proposed Capital Fund budget to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.

  
  

• Maintain an assigned fund balance in the General Fund equal to a minimum of 25% of current year General Fund budgeted expenditures.

  
  

• Maintain a contingency reserve for the Equipment Replacement Fund of $500,000 to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.

  
  

• Maintain a contingency reserve in the Enterprise Funds equal to 5% of the proposed Town Marina and Golf Course Enterprise Fund’s operating expense budget to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.

  
  

• Maintain a contingency reserve in the Self‐Insurance Risk Fund of $500,000 to address unexpected needs that occur throughout the year, subject to the formal affirmative vote of the Town Council.

  
  

• Maintain a contingency reserve in the Self‐Insurance Health Fund of $500,000 to address unanticipated expenditures and/or to meet unexpected increases in health insurance costs and claims exposure.

  
  

• Establish a reserve to designate fund balance in the amount equal to the Town’s unpaid obligations, unfinished projects and prepaid expenses that carry over from one fiscal year into the next.

  
  

• Maintain minimum unrestricted net position levels equal to 25% of the proposed budgeted revenues in the Town Marina Enterprise Fund.

  
  

• Maintain a minimum reserve of $2,500,000 for the Risk Fund designated as a reserve for catastrophic exposures/emergencies.

  
  

• Maintain a reserve for funding the replacement costs of General Fund existing equipment, vehicles, and computers when they reach the end of their useful lives. The reserve will be

  

  
  

  maintained at a rate of 100% of accumulated depreciation (calculated at replacement cost) of the existing equipment.

  
  

• Maintain a reserve for funding the replacement costs of Golf Course Enterprise Fund existing equipment, vehicles, and computers when they reach the end of their useful lives. The reserve will be maintained at a rate of 100% of accumulated depreciation (calculated at replacement cost) of the existing equipment.

  
  

• Maintain a reserve for funding a dock repair and replacement fund. The reserve will be maintained at a rate of 100% of accumulated depreciation based on the estimated replacement cost.

  
  

• Maintain a repair and replacement reserve for funding the maintenance and improvement projects for the Golf Course.

  
  

• Maintain a commitment of fund balance in the General Fund for payment of the liability related to compensated absences. This commitment will be funded at a rate of 100% of the fiscal year end accrued balance.

  
  

  RETIREMENT FUNDING POLICY

  

• The Town of Palm Beach will budget and contribute an amount equal to the Actuarially Determined Employer Contribution (ADEC).

  
  

• In addition, the Town of Palm Beach will contribution additional funds over and above the ADEC during the first month of the fiscal year. These additional funds serve to reduce the Town’s Unfunded Actuarially Accrued Liability (UAAL) and will be reflected as receivable contributions in the actuarial valuation that is as of the September 30th immediately preceding the deposit date of the additional Funds.

  
  

• The amount of $5,420,000 of additional funding will be paid annually until fully funded, unless reduced due to a maximum allowed under this policy and subject to said funds being budgeted annually.

  
  

• The total Town contribution (including the ADEC) shall be capped at $16 million (indexed after 2017 at 2.75% per annum).

  

  
  

  

  
  

  BUDGET PREPARATION PROCESS‌

  The accounting policies and reporting practices of the Town conform to generally accepted accounting principles as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard‐setting body for establishing governmental accounting and financial reporting principles. The following is a summary of significant policies and practices.

  
  

  FINANCIAL REPORTING ENTITY

  

  For financial reporting purposes, management has defined the reporting entity in accordance with criteria set forth in generally accepted accounting principles. The basic criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity benefits the government and/or its citizens, or whether the activity is conducted within the geographic boundaries of the government and is generally available to its citizens. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the government is able to exercise oversight responsibilities. Based upon the application of these criteria, the following is a brief review of each potential component unit addressed in defining the Town's reporting entity.

  
  

  Included within the reporting entity:

  The Town of Palm Beach Employees' Retirement System

  The Town and the Systems’ participants are obligated to fund the costs based upon actuarial valuations. The Employee’s Retirement Board recommends and the Town Council is authorized to establish benefit levels and to approve the actuarial assumptions used in the determination of contribution levels.

  
  

  Excluded from the reporting entity:

  East Central Regional Wastewater Treatment Facility ("Facility")

  The Town participates in an interlocal agreement with Palm Beach County and the Cities of West Palm Beach, Riviera Beach and Lake Worth to provide wastewater treatment. The facility is governed by a Board of Directors comprised of one member from each participating entity. The Board of Directors has the authority to accept and disburse funds, approve an annual budget, transact business, enter into contracts and decide all other matters related to the Facility. The Town reimburses the Facility based upon usage and also provides funds for renewal and replacement costs. The Town does not exercise significant oversight responsibility nor can the Town significantly influence the Facility's operations and, therefore, the Facility has not been included as part of the reporting entity.

  
  

  BASIS OF ACCOUNTING

  

  Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

  

  
  

  

  
  

  All Governmental Funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized in the period in which they become susceptible to accrual that is when they become measurable and available to pay liabilities of the current period.

  
  

  Property taxes, utility and franchise taxes, intergovernmental revenues and charges for services are susceptible to accrual when collected in the current year or within sixty days subsequent to September 30th, provided that amounts received pertained to billings through the fiscal year just ended. Further, property taxes are recognized as revenue in the fiscal year for which they are levied. Investment earnings are recorded as earned since they are measurable and available. Permits, fines, forfeitures and contributions are not susceptible to accrual because, generally, they are not measurable until received in cash. Revenues collected in advance of the year to which they apply are recorded as deferred revenues.

  
  

  Expenditures under the modified accrual basis of accounting are generally recognized when the related fund liability is incurred and expected to be liquidated with available resources. Exceptions to this general rule include principal and interest on general long‐term debt which are recognized when due.

  
  

  All Proprietary Fund types and the Pension and Nonexpendable Trust Funds are accounted for using the accrual basis of accounting. Revenue is recognized when earned, and expenses are recognized when they are incurred.

  
  

  The Agency Funds are custodial in nature and do not involve measurement of results of operations. They are accounted for under the modified accrual basis of accounting. Assets and liabilities are recognized on the modified accrual basis.

  
  

  BUDGET BASIS

  

  The budgets of general government type funds are prepared on a modified accrual basis. Briefly, this means that obligations of the Town are budgeted as expenses, but revenues are recognized only when they are actually received. Unencumbered appropriations lapse at fiscal yearend.

  
  

  The enterprise funds, on the other hand, are budgeted on a full accrual basis. Not only are expenditures recognized when a commitment is made, but revenues are also recognized when they are obligated to the town.

  
  

  The Comprehensive Annual Financial Report (CAFR) shows the status of the Town’s finances on the basis of “generally accepted accounting principles” (GAAP) and fund expenditures/revenues on both a GAAP basis and budget basis for comparison purposes.

  
  

  BUDGETS AND BUDGETARY REQUIREMENTS

  

  The Town follows these procedures in establishing the budgetary data reflected in the financial statements:

  

  

  
  

  • Under the Laws of the State of Florida and the Town Code, prior to July 31, the Town Manager submits to the Mayor and Town Council a proposed Annual Budget and Financial Plan for the fiscal year, commencing the following October 1st. The Annual Budget and Financial Plan is prepared by fund, function and activity and includes proposed expenditures and the means of financing them.

    
    

  • Two Public hearings are conducted to obtain taxpayer comments.

    
    

  • Prior to October 1st, the budget is legally enacted by the Town Council through passage of a resolution.

    
    

  • Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary control in the General Fund and Capital Projects Funds. On a Non‐GAAP budgetary basis, encumbrances are recorded as expenditures of the current year. On a GAAP basis, encumbrances at year‐end are reported as reservations of fund balance for subsequent‐year expenditures.

    
    

  • Budgets are adopted each fiscal year for the General, Debt Service, Capital Projects, Enterprise, Internal Service, and Trust Funds. Budgets are adopted on a basis consistent with generally accepted accounting principles except that budgetary comparisons for the General Fund and Capital Projects include encumbrances as expenditures.

    
    

  • All annual unencumbered appropriations lapse at fiscal yearend.

    
    

  • Changes or amendments to the budgeted amounts at the fund level must be approved by Ordinance by the Town Council; however, changes within a function or activity may be approved at the administrative level.

    
    

    TRUTH IN MILLAGE (TRIM)

    

    The budget and property tax rate adoption process is governed by the State Statute known as TRIM (truth in millage). In Florida, properties are assessed by the County Property Appraiser and property taxes are collected by the County Tax Collector. Property owners are eligible to receive a homestead exemption of $50,000 on their principal place of residence. All property is assessed at 85% of market value.

    
    

    By State Law, the Town is required to hold two public hearings for adoption of a property tax rate and budget. The first public hearing is advertised by the Property Appraiser's mailing to each property owner a TRIM notice. In addition to notification of this first public hearing the TRIM notice contains the following information:

    
    

  • The new assessed value and the assessed value for the prior year and any exemptions on the property;

    
    

  • The prior year property taxes;

    
    

  • The tax bill if the rolled‐back rate is levied for the new year (the rolled‐back rate is that property tax rate which would derive the same amount of revenue based on the new assessed values as was raised in the prior year at the old assessed values); and

    

    

    
    

  • The property tax bill if the proposed budget is adopted.

    
    

    The second public hearing is advertised by means of a newspaper advertisement which must be published not more than 5 days but not less than 2 days prior to the second public hearing.

    Accompanying this advertisement is a summary of the revenues and expenditures contained within the budget tentatively approved at the first public hearing.

    

    

    
    

    Budget Process

    Town of Palm Beach

    
    

    BUDGET PROCESS

    
    

    

    Town Council sets Town‐wide goals for FY21

    
    

    Departments prepare budget requests for FY21

    
    

    Town Manager and Finance Director review budget requests with each department

    
    

    Proposed Budget submitted to Town Council

    
    

    First Public Hearing on tentative budget and proposed tax rate

    
    

    Second and final public hearing to adopt tax rate and budget

    
    

    Final Budget Approval and Publication

    

    

    
    

    Budget Process‌

    Town of Palm Beach

    
    

    BUDGET CALENDAR

    DATE	TASK
    2/3/20	Finance to distribute FY21 budget instructions
    2/11/20	Town Council Meeting – Adoption of the Town Manager’s goals for FY21
    2/18/20	Submit initial CIP request forms to Public Works, IT requests to IT and reorganization/reclassification requests to HR
    3/11/20	All budget information submitted to finance from departments
    5/14/20 – 6/1/20	Town Manager’s initial review of departmental budgets, including Capital, Coastal, Health and OPEB
    5/29/20	Property Appraiser issues preliminary property values
    6/25/20	Proposed budget document pages returned to Finance
    6/25/20	Notice from Property Appraiser of preliminary certification of taxable value
    7/2/20	Distribution of proposed FY21 budget document
    7/14/20	Town Council Meeting – consider proposed FY21 budget and initial resolution(s) adopting special non‐ad valorem assessments and review of Long Term Financial Plan
    8/17/20	Notice of proposed property taxes is mailed from Palm Beach County Property Appraiser
    9/10/20	Town Council Meeting – First Public Hearing to approve tentative budget and proposed tax rate for FY21 and final resolution(s) adopting special non‐ad valorem assessments
    9/16/20	Town Council Meeting – Second Public Hearing to adopt FY21 Budget and Tax Rate
    10/1/20	Resolution adopting final millage rate is forwarded to Property Appraiser and Tax Collector and Certificate of Compliance sent to Department of Revenue
    10/26/20	Final FY21 Budget document distributed
    11/16/20	Final FY21 Budget document submitted to the GFOA for Distinguished Budget Award

    

    
    

    DESCRIPTION OF FUNDS AND FUND TYPES‌

    For accounting purposes, a state or local government is not treated as a single, integral entity. Rather, a government is viewed instead as a collection of smaller, separate entities known as “funds”. The Governmental Accounting Standards Board’s (GASB) Codification of Governmental Accounting and Financial Reporting Standards (Codification), Section 1300, defines a fund as:

    
    

    A fiscal and accounting entity with a self‐balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

    
    

    All of the funds used by a government must be classified into one of seven “fund types.” Four of these fund types are used to account for a state or local government’s “governmental‐type” activities and are known as “governmental funds”. Two of these fund types are used to account for a government’s “business‐type” activities and are known as “proprietary funds”. Finally, the seventh fund type is reserved for a government’s “fiduciary activities”.

    
    

    GOVERNMENTAL FUNDS

    Four fund types are used to account for governmental‐type activities. These are the general fund, special revenue funds, debt service funds, and capital projects funds.

    
    

    General Fund (Major)

    The General Fund is used to account for most of the day‐to‐day operations of the Town, which are financed from property taxes, fees, licenses, permits, fines and forfeitures, intergovernmental and other general revenue. There can only be one general fund. Activities financed by the General Fund include the following:

• General Government

  Includes expenditures for Compensated Absences and other Town‐wide items.

  
  

• Legislative

  Includes expenditures for the Mayor and Town Council.

  
  

• Town Manager

  The budget of the Town Manager includes expenditures for administrative expenses relating to the Town Manager’s Office, Advice and Litigation expenses for the Town Attorney and outside counsel, Information Technology and the Town Clerk’s Office.

  
  

  In FY17, the Town Clerk’s Office became a division of the Town Manager’s Office. The Town Clerk’s Office is responsible for the records of the Town as well as conducting elections held within the Town. The Department also processes permits for charitable solicitations, special events, commercial motion picture‐making, going‐out‐of‐business sales, and door‐to‐door solicitations.

  
  

• Human Resources

  The Human Resources Department is responsible for the recruitment, screening, and selection of employees to serve the Town. The Department is also responsible for employee benefits

  

  
  

  administration and compensation analysis. The Risk Manager is also under the supervision of the Human Resources Department.

  
  

• Finance

  The Finance Department is responsible for the administration, development and monitoring of the operating and capital budgets, preparation of the comprehensive financial reports, investments, debt management, cash management, and the maintenance of accurate financial reporting systems to meet all of the Town needs. The Department also is responsible for the operation and management of the purchasing, payroll and accounts payable functions.

  
  

• Planning and Zoning

  The Planning and Zoning Department is responsible for zoning changes. The Department also assists residents, businesses, and the construction industry in code compliance. The Department strives to preserve the aesthetic, historical, and economic values of Palm Beach.

  
  

• Fire‐Rescue

  The Fire‐Rescue Department provides fire suppression, fire prevention education, rescue and emergency medical care and ocean rescue functions to the citizens and visitors to the Town. The Department conducts education programs on injury, heart attack and stroke prevention.

  
  

• Police

  The Police Department is responsible for the prevention of crime, preservation of peace, enforcement of laws and ordinances. This is accomplished through the patrol services, organized crime, vice and narcotics (OCVAN), crime scene/evidence, parking control enforcement and communications.

  
  

• Public Works

  The Public Works Department is responsible for the repair, maintenance, and cleaning of streets within the Town, the maintenance of storm sewers and sanitary sewers, the collection and disposal of residential and commercial garbage and yard trash, beach cleaning, the maintenance of the Town parks and buildings, coastal management, and providing the general engineering services for the Town.

  
  

• Other

  Under this classification are expenditures relating to the Four Arts Library and contingent appropriations.

  
  

• Transfers to other Funds

  This classification includes transfers to the capital, coastal, underground utility project, risk insurance, OPEB Trust, debt service funds and the extraordinary retirement contribution.

  
  

  SPECIAL REVENUE FUNDS

  Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources which, by law, are designated to finance particular functions or activities of government and which therefore cannot be diverted to other uses. The Town has the following special revenue funds for which an annual budget is not adopted:

  • (101) State Forfeiture Fund (Nonmajor) ‐ Accounts for State confiscated property through the Police Department per Florida State Statutes Section 932.

    

    
    

  • (102) Federal Forfeiture Fund (Nonmajor) ‐ Accounts for federally confiscated property through the Police Department. An annual report is submitted to the United States Department of Justice by November 30th of each year.

  • (103) Donations Fund (Nonmajor) ‐ The Town of Palm Beach receives substantial donations each year from its residents. Most donations are earmarked for specific departments and/or purposes.

  • (110) Grant Fund (Nonmajor) – Accounts for grants received by the Town.

  • (120) Underground Utility Assessment Fund (Nonmajor) – Accounts for assessment projects relating to undergrounding utilities in various assessment areas in the Town.

  • (121) Special Assessment Maintenance Fund (Nonmajor) – Accounts for the non‐capitalized expenses related to the assessment districts.

    
    

    The Town has the following special revenue fund for which an annual budget is adopted:

    • (122) Town‐wide Undergrounding of Utilities Project Fund (Major) – Accounts for undergrounding utilities town‐wide for all areas not previously completed.

      
      

      DEBT SERVICE FUNDS (NONMAJOR)

      The Debt Service Funds are used to account for the payment of interest and principal on general and special obligation debts other than those payable from special assessments and debt issued for and serviced by a governmental enterprise. The sources of revenues in these funds are transfer of non‐ad valorem revenue from the General Fund and transfers of assessment revenue from the Worth Avenue Assessment Area Improvement Fund.

      
      

    • (205) Revenue Bond Series 2010A, 2013, 2016A and General Obligation Bond Series 2018 – This fund accounts for the debt service for the accelerated capital improvement program and the Town‐wide Underground Utility Project.

    • (206) Revenue Bond Series 2010B and 2016B – This fund accounts for the debt service for the Worth Avenue Special Assessment District Construction Project.

      
      

      CAPITAL PROJECTS FUNDS

      The Capital Projects Funds account for all resources used for the acquisition and/or construction of capital infrastructure by the Town except those financed by Enterprise and Internal Service Funds. The sources of revenue in these funds are revenue bonds, transfers from other funds and grants.

    • (307) Capital Improvement Fund (Nonmajor) ‐ This fund accounts for various construction projects undertaken by the Town. Any unexpended amounts at fiscal year‐ end, are rolled over to the new fiscal year. A five year Capital plan is presented during the budget process, of which only the first year is adopted by the Town Council. This fund is financed on a pay‐ as‐you go basis from the General Fund.

    • (309) Comprehensive Coastal Management Plan (CCMP) Construction Fund (Major) ‐ This fund was created during Fiscal Year 2000 to account for the Beach Restoration Project construction costs financed with proceeds from the 2000 Revenue Bond.

    • (311) Worth Avenue Assessment Area Improvement Fund (Nonmajor) ‐ This fund was created during Fiscal Year 2010 to account for pre‐construction and ongoing maintenance costs for Worth Avenue Improvements.

      

      
      

      PROPRIETARY FUNDS

      Two fund types are used to account for a government’s business‐type activities (activities that receive a significant portion of their funding through user fees). These are the enterprise funds and the internal service funds.

      
      

      ENTERPRISE FUNDS

      Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises; where the intent of the government’s board is that the costs of providing goods and services to the general public on a continuing basis are financed or recovered primarily through user charges; or where the government’s board has decided that periodic determination of net income is appropriate for accountability purposes.

    • (401) Marina Enterprise Fund ‐ This fund was created in FY2019 after the Recreation Enterprise Fund was dissolved and accounts for the Marina services at the Town Docks. The fund also includes capital projects and for the enterprise fund.

    • (402) Par 3 Enterprise Fund – This fund was created in FY2019 after the Recreation Enterprise Fund was dissolved and accounts for the revenues and expenses of the Par 3 Golf Course. The fund also includes capital projects and equipment replacement reserves for the enterprise fund.

    • (405) Building Enterprise Fund – This fund was created in FY2021. The fund includes the issuance of permits for building, mechanical, plumbing, electrical, gas, energy and coastal construction.

      
      

      INTERNAL SERVICE FUNDS

      Internal Service Funds are used to account for the financing of goods or services provided by one department or agency of a government to other department or agencies on a cost reimbursement basis. Accounting for Internal Service Funds as a proprietary fund type is designed to accumulate the total cost (including depreciation) of providing a particular service. Costs for services are reimbursed by the departments or agencies to which the services are provided.

      
      

    • (501) Risk Management Self Insurance Fund ‐ This fund was established to account for the Town’s Property, Liability and Worker’s Compensation Insurance costs. Monthly funding transfers are made from the General Fund to the Risk Fund.

    • (502) Health Insurance Self Insurance Fund ‐ This fund was established to account for the Town’s health insurance costs which include medical, dental, life, long‐term disability accidental death/dismemberment and supplemental life insurance. Monthly funding transfers are made from the General Fund to the Health Fund.

    • (320) Equipment Replacement Fund ‐ This reserve was established to fund the replacement cost of existing equipment, vehicles and computers when they reach the end of their useful lives. The reserve has significantly reduced the budgetary fluctuations due to purchases of equipment and established the fixed asset inventory and depreciation schedule required by GASB 34.

      
      

      FIDUCIARY FUNDS

      These funds are used when a government holds or manages financial resources in an agent or fiduciary capacity. This single type is subdivided into four “sub‐fund types” to account for various types of fiduciary obligations. These are the pension trust fund, nonexpendable trust fund, expendable trust fund, and agency funds.

      

      
      

      TRUST FUNDS

      Trust funds are used when governments manage pension and OPEB trust plans. The sources of revenues in these funds are transfers from other funds, interest earnings and employee contributions.

      
      

    • (600) Employees Retirement Fund ‐ This fund accounts for the Town’s defined benefit retirement program for General, Lifeguard, Police Officers and Firefighter employees.

    • (610) Other Post‐Employment Benefits (OPEB) Trust Fund ‐ This fund was established by Ordinance 9‐06 to fund the portion of health care benefits paid by the Town for retirees.

NON‐EXPENDABLE AND EXPENDABLE TRUST FUNDS

These consist of resources received from non‐Town sources and held by the Town as trustee to be expended or invested in accordance with the conditions of the trust. In a non‐expendable trust, the government typically is only permitted to spend the investment earnings and not the assets. The Town does not have non‐expendable and expendable trust funds at the present time.

AGENCY FUNDS

Trust funds typically involve some degree of financial management. Agency funds are used when the government plays a more limited role by just collecting funds on behalf of a third party. The Town does not have an Agency Fund at the present time.

GENERAL FUND LONG‐TERM FINANCIAL PLAN FORECAST‌

Financial forecasts are the foundation of a long term financial plan. These forecasts provide the Mayor, Town Council and staff with information they need to more effectively determine future levels of service and methods of funding. We typically use the current year budget to prepare the forecast but due to the delay caused by the COViD‐19 pandemic, we prepared this forecast of General Fund revenues and expenditures to include the FY21 proposed budget and an 8‐year forecast through FY29. To full the full long term financial plan click here.

Assumptions

The forecast for the first 2 ‐ 4 years is based upon recent trends and specific expectations. The forecast for the remaining years is less tactical and more mathematical, and is based primarily upon estimates by actuaries and long term inflation expectations.

The major assumptions that were used to prepare the forecast are as follows:

Revenue forecasts are based upon historical trends and recent activity. The forecast was prepared using property tax to balance the budget. The percentage increases for ad valorem taxes are shown in the table above. This will not be the ultimate result in future years. The forecast for all revenue categories are described in greater detail later in this section.

The assumption for inflation for FY22 is 1.6% and 2.0% for all years thereafter is based upon the forecast in the Livingston Survey issued by the Federal Reserve Bank of Philadelphia. The salary and wage assumption is based upon the most recent compensation and benefits study in FY20 and average annual increases for all employee groups and forecasted retirements from FY22 through FY29. The health insurance forecast assumption is based upon input from our health consultant’s actuary. The pension forecast assumptions were updated by the Town’s pension actuary to include the results of the compensation study results. The other employee benefit assumptions have been calculated based upon anticipated retirements and other inflation

factors and does not include health insurance. Property, Liability and Workmen’s Compensation insurance assumptions are based upon information received from our brokers regarding potential increases.

2020 Forecast

The forecast charts shown on the following pages include actual results for 2016‐2019 shown in dark blue, the FY20 budget, shown in medium blue and the proposed FY21 budget shown in violet, and then forecasts through FY29 shown in light blue. The forecast maintains service levels, funds the additional contribution of $5,420,000 for the retirement program, and contains the results of the compensation and benefits study.

General Fund Revenue Forecast

The forecast for revenues is conservative and should allow for minor fluctuations in various revenue sources. The forecast details for each major revenue category are included in this analysis. The forecast chart below contains the property tax increases based on the assumptions shown on the table at the beginning of the document.

Property Tax Revenue

As mentioned earlier, we used ad valorem property taxes as the plug to balance the budget for the forecast years of FY22 through FY29. Over the past 5 years, taxable value has increased by 32.66% an average of 6.53% per year. The taxable value increase for FY21 was 4.68%. Over the past five years, the Town portion of the property tax bill for a $1,000,000 homesteaded property has decreased by $116. As of FY20, the total ad valorem tax bill including all taxing districts declined by $7.32 per million of taxable value over the same five year period. In FY20, the school district millage increased based on a voter approved tax increase which caused the overall tax bill for a $1 million homestead property owner to increase by $1,123 in FY20. Prior to FY20, the total bill had decreased $1,131 since 2016.

Non Ad Valorem Taxes

Non ad valorem taxes include local option gas taxes, franchise fees and utility service taxes. The forecast has increased because recent revenue collections have improved. The forecast and trend chart is shown below:

License and Permit Revenue

License and permit revenue includes business licenses, building permit revenues and parking permits.

The chart on the following page shows record years for these revenues sources in FY16, FY18 and FY19. In FY20, revenues are expected to be lower due to the COVID‐19 shutdown. For FY21 through 29, the building permit related revenues have been transferred to the Building Enterprise Fund. The forecast below is for the remaining non‐building permit revenues.

Intergovernmental Revenue

Intergovernmental revenue includes revenue received from Federal, State, County and local government sources. Revenues from the State of Florida include State revenue sharing, local government sales tax and alcoholic beverage licenses. Local revenues include County occupational license revenue, and the 911 reimbursement from Palm Beach County. Federal and State grants are also included in this category.

The forecast for intergovernmental revenues has decreased for FY21 and FY22 based on revenues received from the State of Florida for sales tax and revenue sharing. FY18 contained grant funds from FEMA and the Federal Government. The updated forecast for all other revenues anticipates a small inflationary increase per year.

Charges for Services

Charges for services include public safety fees, solid waste fees, parking meter collections and other small fees such as copy charges and lien searches. The updated forecast reflects the increase in special assignment overtime for two new large contracts. This revenue source

offsets increased expenditures in the salary and wage budget in the police department. If the contracts were not renewed and the revenue was lost, the expenditures would also decline by approximately the same amount. This category also includes the estimates for the revenue for the new Recreation Center beginning in FY20. The forecast for these revenue sources reflect small inflationary increases.

Fines and Forfeitures

Fine and Forfeiture revenue includes traffic violation fines and penalties, parking fines and penalties and code enforcement violation fines.

Revenues from these sources have been variable and have declined in recent years. There have been several recent vacancies in parking enforcement and officers have been pulled from their duties to handle traffic duty during presidential visits. In addition, the new parking meter system allows a customer to update their meter time on their mobile device, so fewer tickets are being issued for parking meters. The downward forecast in these revenues from FY20 reflect the current status.

Investment Income

Investment returns started to increase due to rising interest rates. The Federal Reserve cut interest rates in response to the COVID‐19 pandemic recession, so we have lowered our FY21 budget and future forecast for lower rates for the near term. The Investment Advisory Committee and our investment consultants are monitoring the situation closely and will adjust the duration of the portfolios as required.

Miscellaneous and Transfers

Miscellaneous revenue includes rents and royalties, the sale of fixed assets and other revenue. The increase in the FY20 budget and future forecast is due to new revenue from the p‐card rebate program, and higher than anticipated DC forfeiture funds.

Total General Fund Expenditures

The 2020 forecast contains the results of the compensation and benefit study and additional funding of $5,420,000 annually for the pension fund. In addition, the forecast reflects the expenditure increase assumptions outlined earlier in this section. The charts in this section include four years of actual data from 2016‐2019 in dark blue, the FY20 budget in medium blue, the proposed FY21 budget in violet and the forecast through FY29 in light blue. The forecast has been updated to reflect the transfer of the Building Permit related expenses to the new Building Enterprise Fund beginning in FY21.

Salary and Wages

The forecasted salary and wage increases are based upon the employee pay policies and replacements of retirees at lower salaries through the forecast period. The salary and wage assumption is based upon the compensation study results and the change to the merit system and new step program including COLA on October 1st of each year. In recent years expenditures have come in well below budget due to vacancies from retirements and turnover. We expect the FY20 actual costs to be below the budget amount. For FY21, a COLA increase was not included due to the negative CPI. The chart on the following page shows the forecast and past trends.

Reduced staffing has improved the salary forecast over recent years. The 2020 forecast contains the personnel cuts that have been made in FY21 and the reductions planed through attrition in future years. The average increase throughout the forecast period is 4.4% for total salary and wages.

Pension Benefits

The pension estimate is based upon the actuary’s forecast for pension costs for the annual required contribution and estimates for the General Employee DC contributions. The forecast for annual contributions has been updated to include the compensation study results and the benefit changes for police officers and firefighters.

The forecast reflects the Town’s Retirement Board recommended a change in the investment assumption from 7.0% to 6.0% over a 5‐year period, the change in the payroll growth assumption, the increase in the wage growth assumption and the new mortality tables. The actuary forecasts the costs to decline over the 10‐year period if all assumptions are met. The FY19 extraordinary contribution includes additional funds paid into the system for the new amortization and the prepayment of the UAAL for the effects of the compensation study.

Other Employee Benefits

Other Employee Benefits includes all other benefits including health insurance. Health insurance costs have remained flat for six years. To be conservative, the health insurance forecast reflects an increase of 6.0% for FY22 – FY24, then reductions through the forecast period to 5.49%. The Town’s actuary for the health plan provided the health insurance forecast. Other employee benefits (including FICA, longevity, incentives, and allowances) are expected to increase at a much lower rate.

Contractual

The contractual costs have increased due to increases in software maintenance agreements, sanitary sewer treatment costs, landscape maintenance and the addition of Recreation Department expenses. Contractual expenditures are forecasted to increase by the rate of inflation.

Commodities

The commodity forecast is based upon the assumed rate of inflation. Commodity budgets include fuel, supplies, dues, software, some computer hardware and vehicle maintenance and uniforms. The reduction in expenses represent an overall town effort to reduce expenses wherever possible.

Equipment Replacement/Capital Outlay

This category includes depreciation on Town vehicles and equipment that is charged to the departments and transferred to the Equipment Replacement Fund. It also includes purchases of new equipment that is not replacement equipment. There were large capital purchases in FY17 in the Police and Fire‐Rescue Departments that caused the spike in each year.

Transfers

The Transfers category includes transfers to the Capital Improvement Program, Coastal Protection Fund, Debt Service Fund, Risk Insurance Fund and Retiree Health Insurance Trust. It also includes the annual contingency allocation.

• In FY17, the transfer to the Capital Improvement Program increased by $1,260,200. This transfer is intended to begin to build reserves for capital projects in the pay‐as‐you‐go fund once the ACIP bond funds have been spent at the end of 2019. The forecast assumes a 10% increase per year until 2027 then a 5% increase thereafter. The increases are in anticipation of the need to increase funding in the Capital Improvement fund going forward to move toward pay‐as‐you‐go funding for capital improvement projects.

  
  

• The Town Council approved a 10 year $84 million Coastal Protection program in 2013. The first year funding in FY15 was approved at $4,777,000. The transfer increased to

  $8,015,220 due to increased beach renourishment project costs. In FY17, the transfer was lowered to $7,265,000 due to the reduction in scope of some projects. In FY20 the transfer was reduced by $369,413 and in FY21 the budget was reduced to the original

  $4,777,000 because of the award of FEMA, Federal and State grant funding. The forecast for FY22 forward assumes a 3% increase per year in funding.

  
  

• Debt service decreased in FY17 due to the refunding of the 2010A bonds at a lower interest rate. The budget for FY21 was reduced due to the refunding of the balance of the 2010A bonds and the 2013 bonds. The forecast includes the debt service on both the 2016 and 2019 bonds which are paid mostly from General Fund revenues.

  
  

• Risk insurance premium increases have been estimated as follows: Property Insurance 5% per year, Liability Insurance 2% per year, and Worker’s Compensation 3% per year throughout the forecast period.

  
  

• Retiree Health Insurance is based upon a forecast for Town Contributions prepared by the Town’s actuary. Due to the over funded status of this trust the transfer has been reduced to $423,014 in FY20. The actuary calculated the amounts in the forecast to keep the plan 100% funded if the investment return assumption is set at 6%.

  
  

• The General Fund contingency appropriation has been estimated to be 1% of the forecasted operating expenditures as required by Town policy. The General Fund contingency is funded through a transfer from fund balance rather than through operating revenues. The policy was modified to reduce the appropriation from 1.5% to 1% in FY18.

  
  

• The Town’s contribution to the Four Arts Library is forecasted to increase by CPI capped at 3% per year.

  Forecast Summary

  Town of Palm Beach

  63

  Town of Palm Beach

  Revenue and Expenditure Forecast

  LTFP FY2020 - FY2029

  	FY20	FY21	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29
  Revenues
  Ad Valorem Taxes	55,979,439	57,134,000	58,364,632	59,853,789	62,328,118	65,371,794	67,908,039	69,940,308	71,044,088	72,761,104
  Non Ad Valorem Taxes	8,817,700	8,601,000	8,852,580	9,111,578	9,378,215	9,652,717	9,935,317	10,226,255	10,525,779	10,834,143
  Licenses & Permits	8,485,100	1,995,100	2,073,298	2,092,042	2,150,198	2,170,084	2,231,358	2,252,455	2,317,016	2,339,397
  Intergovernmental	1,099,600	956,000	927,464	947,928	968,878	990,326	1,012,285	1,034,767	1,057,785	1,081,353
  Charges for Services	6,289,199	5,384,700	5,564,664	5,671,785	5,774,139	5,879,304	5,987,360	6,098,389	6,212,477	6,329,711
  Fines and Forefeitures	942,000	916,000	929,640	933,389	937,250	941,226	945,321	949,539	953,882	958,356
  Investment Earnings	1,230,000	904,773	1,040,000	1,190,000	1,215,000	1,215,000	1,240,000	1,290,000	1,390,000	1,390,000
  Miscellaneous and Transfers	515,728	3,719,500	4,302,622	4,328,915	4,330,248	4,331,620	4,333,034	4,359,490	4,385,815	4,437,180
  Total Operating Revenues	83,358,766	79,611,073	82,054,900	84,129,426	87,082,046	90,552,071	93,592,714	96,151,203	97,886,842	100,131,244
  Transfers from Fund Balance	1,083,000	1,304,500	1,148,492	1,164,580	1,188,632	1,212,950	1,237,138	1,256,519	1,284,588	1,303,958
  Total Revenues	84,441,766	80,915,573	83,203,392	85,294,006	88,270,678	91,765,021	94,829,852	97,407,722	99,171,430	101,435,202
  Expenditures
  Salaries and Wages	28,004,601	26,512,380	27,569,524	28,141,972	29,262,992	30,539,101	31,852,537	33,254,145	34,711,835	36,211,280
  Pension Benefits	10,474,061	11,099,260	11,376,360	11,793,745	12,368,536	12,912,678	13,350,195	13,187,217	12,157,767	11,654,490
  DC Plan Benefits	559,296	502,742	518,974	528,194	547,263	569,076	591,267	614,427	638,468	663,218
  Other Employee Benefits	6,770,115	6,279,584	6,541,872	6,841,689	7,215,878	7,482,886	7,798,538	8,136,111	8,496,466	8,873,702
  Contractual	10,682,513	10,407,395	10,596,923	10,816,291	11,040,238	11,268,861	11,502,258	11,740,530	11,883,148	12,129,467
  Commodities	1,753,420	1,712,155	1,739,556	1,774,353	1,809,845	1,846,047	1,882,974	1,920,639	1,959,058	1,998,245
  Equipment Replacement	2,422,703	2,293,961	2,329,453	2,375,532	2,422,533	2,470,473	2,519,373	2,569,256	2,620,141	2,672,044
  Library Services	352,650	352,650	363,230	374,126	385,350	396,911	408,818	421,083	433,715	446,726
  Transfer to Capital Improvement	2,420,000	2,662,000	2,928,200	3,221,020	3,543,122	3,897,434	4,287,178	4,715,895	5,187,485	5,446,859
  Transfer to Coastal Protection	6,520,211	4,777,000	4,920,310	5,067,919	5,219,957	5,376,556	5,537,852	5,703,988	5,875,107	6,051,361
  Transfer to the UUTF	144,450	165,000	176,550	188,909	202,132	216,281	231,421	-	-	-
  Extraordinary Transfer to Retirement Fun	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000
  Debt Service	5,983,913	5,691,148	5,646,719	5,640,423	5,648,771	5,658,776	5,667,781	5,858,767	5,854,128	5,855,211
  Retiree Health	423,014	429,858	402,178	384,768	391,956	842,833	829,891	816,793	792,449	768,629
  Transfer to Risk Insurance Fund	1,900,819	2,010,439	2,063,184	2,098,605	2,141,578	2,192,247	2,250,708	2,330,436	2,412,656	2,497,479
  Contingency	610,000	600,000	610,358	626,460	650,527	674,860	699,060	718,434	729,006	746,491
  Total Expenditures	84,441,766	80,915,572	83,203,391	85,294,006	88,270,678	91,765,020	94,829,851	97,407,721	99,171,429	101,435,202
  Surplus/(Deficit)	-	-	-	-	-	-	-	-	-	-

  	FY20	FY21	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29
  Revenues
  Ad Valorem Taxes	55,979,439	57,134,000	58,364,632	59,853,789	62,328,118	65,371,794	67,908,039	69,940,308	71,044,088	72,761,104
  Non Ad Valorem Taxes	8,817,700	8,601,000	8,852,580	9,111,578	9,378,215	9,652,717	9,935,317	10,226,255	10,525,779	10,834,143
  Licenses & Permits	8,485,100	1,995,100	2,073,298	2,092,042	2,150,198	2,170,084	2,231,358	2,252,455	2,317,016	2,339,397
  Intergovernmental	1,099,600	956,000	927,464	947,928	968,878	990,326	1,012,285	1,034,767	1,057,785	1,081,353
  Charges for Services	6,289,199	5,384,700	5,564,664	5,671,785	5,774,139	5,879,304	5,987,360	6,098,389	6,212,477	6,329,711
  Fines and Forefeitures	942,000	916,000	929,640	933,389	937,250	941,226	945,321	949,539	953,882	958,356
  Investment Earnings	1,230,000	904,773	1,040,000	1,190,000	1,215,000	1,215,000	1,240,000	1,290,000	1,390,000	1,390,000
  Miscellaneous and Transfers	515,728	3,719,500	4,302,622	4,328,915	4,330,248	4,331,620	4,333,034	4,359,490	4,385,815	4,437,180
  Total Operating Revenues	83,358,766	79,611,073	82,054,900	84,129,426	87,082,046	90,552,071	93,592,714	96,151,203	97,886,842	100,131,244
  Transfers from Fund Balance	1,083,000	1,304,500	1,148,492	1,164,580	1,188,632	1,212,950	1,237,138	1,256,519	1,284,588	1,303,958
  Total Revenues	84,441,766	80,915,573	83,203,392	85,294,006	88,270,678	91,765,021	94,829,852	97,407,722	99,171,430	101,435,202
  Expenditures
  Salaries and Wages	28,004,601	26,512,380	27,569,524	28,141,972	29,262,992	30,539,101	31,852,537	33,254,145	34,711,835	36,211,280
  Pension Benefits	10,474,061	11,099,260	11,376,360	11,793,745	12,368,536	12,912,678	13,350,195	13,187,217	12,157,767	11,654,490
  DC Plan Benefits	559,296	502,742	518,974	528,194	547,263	569,076	591,267	614,427	638,468	663,218
  Other Employee Benefits	6,770,115	6,279,584	6,541,872	6,841,689	7,215,878	7,482,886	7,798,538	8,136,111	8,496,466	8,873,702
  Contractual	10,682,513	10,407,395	10,596,923	10,816,291	11,040,238	11,268,861	11,502,258	11,740,530	11,883,148	12,129,467
  Commodities	1,753,420	1,712,155	1,739,556	1,774,353	1,809,845	1,846,047	1,882,974	1,920,639	1,959,058	1,998,245
  Equipment Replacement	2,422,703	2,293,961	2,329,453	2,375,532	2,422,533	2,470,473	2,519,373	2,569,256	2,620,141	2,672,044
  Library Services	352,650	352,650	363,230	374,126	385,350	396,911	408,818	421,083	433,715	446,726
  Transfer to Capital Improvement	2,420,000	2,662,000	2,928,200	3,221,020	3,543,122	3,897,434	4,287,178	4,715,895	5,187,485	5,446,859
  Transfer to Coastal Protection	6,520,211	4,777,000	4,920,310	5,067,919	5,219,957	5,376,556	5,537,852	5,703,988	5,875,107	6,051,361
  Transfer to the UUTF	144,450	165,000	176,550	188,909	202,132	216,281	231,421	-	-	-
  Extraordinary Transfer to Retirement Fun	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000	5,420,000
  Debt Service	5,983,913	5,691,148	5,646,719	5,640,423	5,648,771	5,658,776	5,667,781	5,858,767	5,854,128	5,855,211
  Retiree Health	423,014	429,858	402,178	384,768	391,956	842,833	829,891	816,793	792,449	768,629
  Transfer to Risk Insurance Fund	1,900,819	2,010,439	2,063,184	2,098,605	2,141,578	2,192,247	2,250,708	2,330,436	2,412,656	2,497,479
  Contingency	610,000	600,000	610,358	626,460	650,527	674,860	699,060	718,434	729,006	746,491
  Total Expenditures	84,441,766	80,915,572	83,203,391	85,294,006	88,270,678	91,765,020	94,829,851	97,407,721	99,171,429	101,435,202
  Surplus/(Deficit)	-	-	-	-	-	-	-	-	-	-

  Town of Palm Beach

  Revenue and Expenditure Forecast

  LTFP FY2020 - FY2029

  63

  Forecast Summary

  Town of Palm Beach

  

  

  
  

  

  

  
  

  

  
  

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  Fund Budget Overview‌‌

  Town of Palm Beach

  
  

  BREAKDOWN OF TOTAL OPERATING EXPENDITURES – ALL FUNDS

  
  

  FY2021 Operating Expenditures

  $260,993,685

  FY2021 Operating Expenditures

  $260,993,685

  
  

  
  

  General Fund

  $80,915,573

  Underground Utility Fund

  $56,715,145

  
  

  Debt Service Funds

  $7,307,810

  
  

  Capital Project Funds

  $38,056,795

  Enterprise Funds

  $38,832,488

  Internal Service Funds

  $13,844,937

  
  

  Trust Funds

  $25,320,937

  
  

  General Fund

  $80,915,573

  Underground Utility Fund

  $56,715,145

  
  

  Debt Service Funds

  $7,307,810

  
  

  Capital Project Funds

  $38,056,795

  Enterprise Funds

  $38,832,488

  Internal Service Funds

  $13,844,937

  
  

  Trust Funds

  $25,320,937

  
  

  

  2016A and 2013 Revenue Bonds

  $6,582,397

  
  

  CIP PayGo Fund

  $10,400,297

  
  

  Marina Fund

  $29,688,446

  
  

  Risk Insurance Fund

  $5,643,388

  Employee Retirement Fund

  $22,220,688

  
  

  2016B

  Revenue Bonds

  $725,413

  Coastal Protection Fund

  $27,319,580

  
  

  Par 3 Fund

  $2,934,894

  Health Insurance Fund

  $5,368,453

  Health Insurance Trust (OPEB)

  $3,100,249

  
  

  Worth Avenue Assessment

  $336,918

  
  

  Building Fund

  $6,209,148

  Equipment Replacement Fund

  $2,833,096

  Worth Avenue Assessment

  $336,918

  
  

  Building Fund

  $6,209,148

  Equipment Replacement Fund

  $2,833,096

  

  

  
  

  Fund Budget Overview

  Town of Palm Beach

  
  

  BREAKDOWN OF TOTAL OPERATING REVENUES – ALL FUNDS

  
  

  FY2021 Operating Revenues

  $180,181,997

  FY2021 Operating Revenues

  $180,181,997

  
  

  
  

  General Fund

  $79,611,073

  Underground Utility Fund

  $5,865,000

  
  

  Debt Service Funds

  $7,124,555

  
  

  Capital Project Funds

  $26,128,706

  Enterprise Funds

  $11,954,505

  Internal Service Funds

  $9,453,308

  
  

  Trust Funds

  $40,044,850

  
  

  General Fund

  $79,611,073

  Underground Utility Fund

  $5,865,000

  
  

  Debt Service Funds

  $7,124,555

  
  

  Capital Project Funds

  $26,128,706

  Enterprise Funds

  $11,954,505

  Internal Service Funds

  $9,453,308

  
  

  Trust Funds

  $40,044,850

  
  

  

  2016A and 2013 Revenue Bonds

  $6,399,142

  
  

  CIP PayGo Fund

  $4,269,600

  
  

  Marina Fund

  $3,150,000

  
  

  Risk Insurance Fund

  $2,210,439

  Employee Retirement Fund

  $36,414,992

  
  

  2016B

  Revenue Bonds

  $725,413

  Coastal Protection Fund

  $21,587,188

  
  

  Par 3 Fund

  $2,542,500

  Health Insurance Fund

  $4,714,570

  Health Insurance Trust (OPEB)

  $3,629,858

  
  

  Worth Avenue Assessment

  $271,918

  
  

  Building Fund

  $6,262,005

  Equipment Replacement Fund

  $2,528,299

  Worth Avenue Assessment

  $271,918

  
  

  Building Fund

  $6,262,005

  Equipment Replacement Fund

  $2,528,299

  

  

  
  

  Budget Summary by Fund Type‌

  Town of Palm Beach

  
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  BUDGET SUMMARY BY FUND TYPE

  FY 21 Budget Summary by Fund Type, Revenues and Expenditures General Special Debt Capital Enterprise Internal Revenue Service Projects Service							Trust & Agency	Totals
  Revenues
  Ad Valorem Taxes	57,134,058	0	0	0	0	0	0	57,134,058
  Non Ad Valorem Taxes	6,351,000	0	0	500,000	0	0	0	6,851,000
  Licenses and Permits	4,290,100	0	0	0	6,247,005	0	0	10,537,105
  Intergovernmental	923,300	0	0	0	0	0	0	923,300
  Charges for Services	5,384,700	0	0		2,590,500	8,798,308	0	16,773,508
  Fines and Forfeitures	916,000	0	0		0	0	0	916,000
  Contributions/Grants	32,700	0	0	17,267,500	3,100,000	0	14,822,350	35,222,550
  Gain/Loss on Investments	0	0	0	0	0	55,000	3,300,000	3,355,000
  Interest Earnings	904,715	800,000	2,000	657,288	0	600,000	16,500,000	19,464,003
  Miscellaneous	449,500	200,000	0	0	17,000	0	2,500	669,000
  Special Assessments	0	4,200,000	723,413	264,918	0	0	0	5,188,331
  Bond Proceeds	0	0	0		0	0	0	0
  Interfund Transfers	3,225,000	665,000	6,399,142	7,439,000	0	0	5,420,000	23,148,142
  Subtotal	79,611,073	5,865,000	7,124,555	26,128,706	11,954,505	9,453,308	40,044,850	180,181,997
  Appropriations from Fund Balance	1,304,500	50,850,145	183,255	11,928,089	26,930,840	4,391,629	0	95,588,458
  Total Revenues	$80,915,573	$56,715,145	$7,307,810	$38,056,795	$38,885,345	$13,844,937	$40,044,850	$275,770,455
  Expenditures
  Salaries and Wages	26,512,380	109,872	0	126,751	2,132,793	261,596	136,939	29,280,331
  Employee Benefits	17,856,712	35,437	0	51,730	1,116,562	5,346,123	2,947,202	27,353,766
  Contractual	10,407,395	53,170,486	0	343,851	2,020,785	1,900,407	22,235,961	90,078,885
  Commodities	1,712,155	500	0	6,200	380,550	3,715	835	2,103,955
  Depreciation/Capital Outlay	2,318,836	0	0	36,163,082	28,749,456	2,284,784	0	69,516,158
  Debt Service	5,691,148	3,398,850	7,285,310	513,181	935,713	48,312	0	17,872,514
  Interfund Transfers	15,464,297	0	0	500,000	3,225,000	0	0	19,189,297
  Other	952,650	0	22,500	352,000	271,629	4,000,000	0	5,598,779
  Subtotal	80,915,573	56,715,145	7,307,810	38,056,795	38,832,488	13,844,937	25,320,937	260,993,685
  Transfer to Fund Balance/Retained Earnings	0	0	0	0	52,857	0	14,723,913	14,776,770
  Total Expenditures	$80,915,573	$56,715,145	$7,307,810	$38,056,795	$38,885,345	$13,844,937	$40,044,850	$275,770,455
  Financial Ratios
  	General	Special Revenue	Debt Service	Capital Projects	Enterprise	Internal Service	Trust & Agency	Total
  Ad Valorem Taxes as percentage
  of total fund budget	70.61%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	20.72%
  Ad Valorem Taxes per capita
  (8,321 population)	$6,866	$0	$0	$0	$0	$0	$0	$6,866
  Total expenditures per capita
  (8,321 population)	$9,724	$6,816	$878	$4,574	$4,673	$1,664	$4,813	$33,142
  Personnel as a percentage of the
  total budget	32.77%	0.00%	0.00%	0.33%	5.48%	1.89%	0.34%	10.62%
  Capital expenditures as
  percentage of total fund budget	2.87%	0.00%	0.00%	95.02%	73.93%	16.50%	0.00%	25.21%
  Capital expenditures per capita
  (8,321 population)	$279	$0	$0	$4,346	$3,455	$275	$0	$8,354

  

  

  
  

  Budget Summary by Fund Type

  Town of Palm Beach

  
  

  

  FY21 Budget by Revenue Type All Funds

  Appropriations from

  Fund Balance 34.7%

  
  

  Interfund Transfers 8.4%

  Ad Valorem Taxes 20.7%

  Sales and Use Taxes 2.5%

  Licenses and Permits 3.8%

  Intergovernmental Revenue

  0.3%

  
  

  Special Assessments

  1.9%

  Miscellaneous

  
  

  Gain/Loss on

  Charges for Services 6.1%

  Fines and Forfeitures

  0.2%

  Interest Earnings 7.1%

  Investments 1.2%

  Contributions 12.8%

  0.3%

  
  

  

  FY21 Budget by Expenditure Classification All Funds

  
  

  
  

  Contractual 32.7%

  Commodities

  0.8% Capital Outlay

  25.2%

  
  

  
  

  Employee Benefits 9.9%

  
  

  Personnel 10.6%

  
  

  Transfer to Fund Balance/Retained Earnings

  5.4%

  Debt Service 6.5%

  
  

  Interfund Transfers 7.0%

  Other 2.0%

  

  

  
  

  Summary of Major Revenues by Fund Type‌

  Town of Palm Beach

  
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  SUMMARY OF MAJOR REVENUES BY FUND TYPE

  FY21 Budget to FY21 FY2018 FY2019 FY2020 FY2020 FY2021 FY20 Budget % Description Actual Actual Budget Projected Budget % Variance of Total
  General Fund
  Ad Valorem Taxes	$52,282,254	$54,883,747	$55,979,439	$55,979,439	$57,134,000	2.06%	70.61%
  Sales and Use Taxes	6,143,197	6,299,361	6,459,000	6,191,643	6,351,000	‐1.67%	7.85%
  Licenses and Permits	12,360,272	14,126,340	10,900,800	10,378,104	4,290,100	‐60.64%	5.30%
  Intergovernmental Revenue	1,406,615	1,282,063	1,099,600	1,204,672	956,000	‐13.06%	1.18%
  Charges for Services	3,763,590	5,152,761	6,289,199	4,919,027	5,384,700	‐14.38%	6.65%
  Fines and Forfeitures	1,068,544	904,076	942,000	939,086	916,000	‐2.76%	1.13%
  Interest Earnings	702,261	969,782	1,230,000	844,084	904,773	‐26.44%	1.12%
  Miscellaneous	384,176	414,502	433,728	441,846	449,500	3.64%	0.56%
  Interfund Transfers	585,000	2,161,035	25,000	25,000	3,225,000	12800.00%	3.99%
  Subtotal	78,695,909	86,193,667	83,358,766	80,922,901	79,611,073	‐4.50%	98.39%
  Appropriations from Fund Balance	0	0	1,083,000	0	1,304,500	20.45%	1.61%
  Total General Fund	$78,695,909	$86,193,667	$84,441,766	$80,922,901	$80,915,573	‐4.18%	100.00%
  Special Revenue Funds
  Interest Earnings	449,285	1,719,181	250,000	960,000	800,000	220.00%	1.41%
  Special Assessments	15,688,010	4,338,050	4,000,000	4,300,000	4,200,000	5.00%	7.41%
  Miscellaneous Revenue	378,298	800,654	0	200,000	200,000	0.00%	0.35%
  Donations	0	0	0	0	0	0.00%	0.00%
  Bond Proceeds	0	60,499,897	0	0	0	0.00%	0.00%
  Interfund Transfers	1,130,000	635,000	644,450	644,450	665,000	3.19%	1.17%
  Subtotal	17,645,593	67,992,783	4,894,450	6,104,450	5,865,000	19.83%	10.34%
  Appropriations from Fund Balance	0	0	29,137,825	0	50,850,145	74.52%	89.66%
  Total Debt Service Funds	$17,645,593	$67,992,783	$34,032,275	$6,104,450	$56,715,145	66.65%	100.00%
  Debt Service Funds
  Interest Earnings	2,762	12,840	12,500	2,348	2,000	0.00%	0.03%
  Special Assessments	747,876	720,810	711,100	711,100	723,413	1.73%	9.90%
  Bond Proceeds	0	0	0	53,499,266	0	0.00%	0.00%
  Interfund Transfers	6,916,632	6,736,682	6,727,833	6,727,833	6,399,142	‐4.89%	87.57%
  Subtotal	7,667,270	7,470,331	7,451,433	60,940,547	7,124,555	‐4.39%	97.49%
  Appropriations from Fund Balance	0	0	187,499	0	183,255	‐2.26%	2.51%
  Total Debt Service Funds	$7,667,270	$7,470,331	$7,638,932	$60,940,547	$7,307,810	‐4.33%	100.00%
  Capital Projects Funds
  Interest Earnings	376,368	1,497,021	1,101,301	1,397,526	657,288	‐40.32%	1.73%
  Sales and Use Taxes	576,792	623,176	500,000	500,000	500,000	0.00%	1.31%
  Grants/Interlocal/Donations	7,117,416	9,322,817	25,708,657	3,584,390	17,262,500	‐32.85%	45.36%
  Special Assessment Revenue	230,625	223,595	264,317	267,136	269,918	2.12%	0.71%
  Miscellaneous	21,000	0	0	0	0	0.00%	0.00%
  Interfund Transfers	12,148,324	21,615,921	8,940,211	8,940,211	7,439,000	‐16.79%	19.55%
  Subtotal	20,470,525	33,282,529	36,514,486	14,689,263	26,128,706	‐28.44%	68.66%
  Appropriations from Fund Balance	0	0	11,232,104	11,501,238	11,928,089	6.20%	31.34%
  Total Capital Projects Funds	$20,470,525	$33,282,529	$47,746,590	$26,190,501	$38,056,795	‐20.29%	100.00%
  Enterprise Funds
  Charges for Services	$6,866,061	$6,564,551	$4,779,762	$4,493,322	$2,590,500	‐45.80%	6.66%
  Licenses and Permits	$0	$0	$0	$0	$6,247,005	0.00%	16.07%
  Interest Earnings	69,259	432,612	0	210,653	0	0.00%	0.00%
  Loan Proceeds	0	0	0	31,000,000	0	0.00%	0.00%
  Grants/Interlocal/Donations	1,761,358	0	0	325,000	3,100,000	0.00%	7.97%
  Interfund Transfers	4,600,000	6,225,321	0	644,189	0	0.00%	0.00%
  Miscellaneous	1,793	7,566	4,500	6,117	17,000	277.78%	0.04%
  Subtotal	13,298,471	13,230,050	4,784,262	36,679,281	11,954,505	149.87%	30.74%
  Appropriations from Retained Erngs.	0	10,358,148	274,634	0	26,930,840	9706.08%	69.26%
  Total Enterprise Funds	$13,298,471	$23,588,198	$5,058,896	$36,679,281	$38,885,345	668.65%	100.00%

  

  

  
  

  Summary of Major Revenues by Fund Type

  

  

  

  

  

  

  Town of Palm Beach

  
  

  FY21 Budget to FY21 FY2018 FY2019 FY2020 FY2020 FY2021 FY20 Budget % Description Actual Actual Budget Projected Budget % Variance of Total
  Internal Service Funds
  Interest Earnings	$170,280	$1,197,346	$520,000	$1,100,000	$600,000	15.38%	4.33%
  Gain/Loss on Investments	29,664	‐2,413	40,000	40,000	55,000	37.50%	0.40%
  Miscellaneous	544,734	1,031,137	0	146,533	0	0.00%	0.00%
  Interfund Transfers	0	110,268	0	0	0	0.00%	0.00%
  Charges for Services	9,145,301	9,004,158	8,767,277	8,925,349	8,798,308	0.35%	63.55%
  Subtotal	9,889,979	11,340,496	9,327,277	10,211,882	9,453,308	1.35%	68.28%
  Appropriations from Retained Erngs.	0	0	4,021,960	0	4,391,629	9.19%	31.72%
  Total Internal Service Funds	$9,889,979	$11,340,496	$13,349,237	$10,211,882	$13,844,937	3.71%	100.00%
  Trust & Agency Funds
  Interest Earnings	1,623,139	3,080,120	2,503,295	6,031,994	5,500,000	119.71%	13.73%
  Gain/Loss on Investments	16,590,910	8,522,498	16,882,071	5,500,000	14,300,000	0.00%	35.71%
  Miscellaneous	565,101	‐46,158	5,000