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Town Manager’s Office




9:30 AM


    Danielle H. Moore, Mayor Margaret A. Zeidman, President Bobbie Lindsay, President Pro Tem Julie Araskog

    Ted Cooney Lew Crampton





    Kirk Blouin, Town Manager

    1. FY 2023 Proposed Budget

    2. General Fund

      1. Review of General Fund Revenues for FY2023.

        Jane Le Clainche, Director of Finance

      2. General Fund Expenditures – Department Review

        1. Legislative

        2. General Government

        3. Town Manager

        4. Advice and Litigation

        5. Town Clerk

        6. Information Technology

        7. Human Resources

        8. Finance

        9. Planning and Zoning

        10. Recreation and Tennis

        11. Fire-Rescue

        12. Police

        13. Public Works

        14. Transfer and Other

    3. Special Revenue Fund

      1. Town-wide Underground Utility Fund

        H. Paul Brazil, Director of Public Works

    4. Debt Service Funds

      Jane Le Clainche, Director of Finance

    5. Capital Improvement Funds

      1. Pay As You Go Capital Improvement Program

      2. Accelerated Capital Improvement Program

      3. Coastal Protection Program

        a. Review of 10-year plan

      4. Worth Avenue Maintenance Program

        H. Paul Brazil, Director of Public Works

    6. Enterprise Fund Budgets

      1. Marina Enterprise Fund

      2. Par 3 Golf Course Enterprise Fund

      3. Building Enterprise Fund

        Carolyn Stone, Assistant Town Manager/Wayne Bergman, Planning Zoning and Building Director

    7. Internal Service Funds

      1. Health Insurance

      2. Risk Management

      3. Equipment Replacement Fund

        Jane Le Clainche, Director of Finance

    8. Trust and Agency Funds

      1. Pension Funds

      2. OPEB Trust

        Jane Le Clainche, Director of Finance

  6. RESOLUTION NO. 091-2022 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County Florida, Approving a Proposed Operating Millage Rate of 2.8966 for the Tentative Fiscal Year 2023 Budget; Approving the Computed Rolled Back Millage Rate of 2.4843 to be Provided to the Property Appraiser in Accordance with F.S. 200.065; Establishing the Date, Time and Place of the First and

    the Final Budget Hearings to Consider the Proposed Millage Rates and Tentative Fiscal Year 2023 Budget and Directing the Town Manager to Transmit this Information to the Property Appraiser of Palm Beach County in Accordance with the Requirements of F.S. 200.065.

    Jane Le Clainche, Director of Finance

  7. RESOLUTION NO. 092-2022 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Amending Recreation Department Fees for Fiscal Year 2023.

    Mark Bresnahan, Director of Recreation

  8. RESOLUTION NO. 093-2022 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Amending Golf Fees for Fiscal Year 2023.

    Mark Bresnahan, Director of Recreation

  9. RESOLUTION NO. 094-2022 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Establishing Marina Annual and Transient Dockage Rates for Fiscal Year 2023.

    Carolyn Stone, Assistant Town Manager

  10. RESOLUTION NO. 095-2022 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County Florida, Adopting Revised Fees Related to Fire Prevention and Special Assignment Overtime for Police Officer and Fire-Fighter Deployments beginning for Fiscal Year 2023.

    Jane Le Clainche, Director of Finance




The progress of this meeting may be monitored by visiting the Town’s website (www.townofpalmbeach.com) and clicking on “Meeting Audio” in the left column. If you have questions relative to this feature, please contact the Office of Information Systems (561) 227-6315.

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

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Proposed Budget for Fiscal Year 2022‐2023


Executive Summary

Town of Palm Beach



Town of Palm Beach, Florida

July 14, 2022

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

Each year the Directors and I start the budget process by conducting a thorough review of Town operations and available resources, while looking for improved ways to meet the needs and expectations of the community.

The proposed FY2023 budget is the result of the fifth year of hard work to find efficiencies and apply lean government principles on a Town‐wide basis. Once the new budget is adopted, members of staff continue to closely examine each expenditure before it is made, to ensure the following questions are answered: Is the resource still needed? Can the expense be deferred? Can the operational needs be met in a more efficient and/or effective manner (reorganization, technology, etc.)?; and, is the Town procuring and purchasing its budget allotments in the most cost effective manner?

The Town Team found efficiencies where possible and produced a $2.3 million surplus in FY21. We expect to have another surplus for FY22. We are proposing a budget which contains additional staffing to meet operational and service needs of the community as outlined by the Town Council and members of Town staff. Inflation continues to pose challenges to controlling costs, particularly material and labor costs in the South Florida market. The increase in the current values of real estate has allowed us to propose a budget that contains a tax cut for homestead and some non‐homesteaded properties. More detail on proposed expenditures and revenues are contained later in the summary.

This year staff has been busy implementing new initiatives and working on many significant projects. These include:

General Fund

FY23 Budget Presentation

There are two sets of documents that have been provided to the Town Council and the public. One document contains the program‐by‐program detail of the General fund and other fund


Executive Summary

Town of Palm Beach


budgets. The other document, which can be found online, contains the budget “flex sheets” which show the budget detail by line item.

Each Department prepared memorandums that are included in each department section of this document that highlights the major changes for each program.

FY23 General Fund Revenues Property Taxes

FY22 Final 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 FY22 was 17.85%. This means for every $100 paid in taxes only $17.85 stays in the Town.

Below are the taxing districts and the adopted millage rates for FY22 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 72.05% of all taxes paid in the Town followed by the Town of Palm Beach at 17.85% with the other taxing districts making up the balance of 10.1%.


FY22 Adopted Taxes Per $1 % of Total

Total Taxes Paid by Palm Beach Property

Taxing Authority Millage Rates Million Value Tax Bill Owners


Palm Beach County School District






Palm Beach County





Palm Beach





Health Care District






Children Services






South Florida Water Mgmt





Everglades Construction





Florida Inland Navigation





Grand Total





The total taxes paid per million of taxable value in the Town in FY22 was $16,225 a decrease of

$269 from FY21. Of that amount, $2,897 stayed in the Town to pay for services and the remaining


$13,328 went to other taxing districts. A breakdown by taxing district for a $1 million homesteaded property using the FY22 tax rates is shown below.



Executive Summary

Town of Palm Beach


FY23 Millage Rate

The millage rate table below shows the FY23 proposed rate, the $0 increase for homestead properties rate, both versus the FY22 millage. The proposed FY23 millage rate of 2.5903 represents a 10.57% reduction from FY22 and a $214 reduction in taxes per million for homesteaded properties and a $48 reduction for non‐homestead properties based on the 10% cap, as defined by State law, for these properties. We have also included the millage rate representing a $0 change for homestead properties. With this higher millage the Town would generate an additional $8,548,439 in property tax revenue some or all of which could be used to fund resiliency efforts, capital projects, accelerate the reduction in the return assumption from 6.6% in FY22 to 6.0% in FY23 for the retirement fund (an additional cost of $1,923,769), and still provide a tax decrease. If there are projects or additions to the budget that the Town Council would like to consider, we can make the millage rate calculations at the Town Council meeting.


Millage Rate


Millage Rate

$0 Increase for Homestead


Proposed Millage Rate

Millage Rate




Tax Revenue




Revenue Increase over FY22




Millage % Increase/Decrease vs. FY22




Homestead Value Increased by 3.0%




Town Taxes




Increase/(Decrease) over FY22




Non‐Homestead Tax Increase (Decrease)

Max 10%




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 rolled‐back millage rate currently is 2.4843. This millage would represent a 14.23% decrease from the FY22 millage and would provide the homestead property owner a $317 per million reduction in taxes. The rolled‐back rate is required to be announced at the public hearings in September.


Executive Summary

Town of Palm Beach



The FY22 revenue budget estimates were conservative. For FY22 to date, many of the revenue sources are exceeding budget expectations. The FY23 proposed revenues represent a conservative increase over FY22. The revenue budget by type for the General Fund for FY23 compared to FY22 is shown on the table below:




FY21 vs. FY22


% Change

Ad Valorem Taxes



$ 3,256,108


Non Ad Valorem Taxes





Licenses & Permits










Charges for Services





Fines and Forfeitures





Investment Earnings










Transfers from the Enterprise Funds





Transfers from unassigned fund balance for Contingency and Compensated Absences





Total Revenues



$ 5,573,256


Significant highlights for General Fund FY23 revenues include:

Funding By Department

Departmental Expenditures

The three largest departments, Police, Fire‐Rescue and Public Works, account for over 58.1% of the Town budget. The transfers mentioned above account for another 26.6% for a total of 84.7% of the total Town budget. All other general government and administrative departments make up the balance of 15.3%. The charts below and on the following page provide a graphic example of expenditures by each department and transfer.



Executive Summary

Town of Palm Beach


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


Fund Balance

The General Fund Unassigned Fund Balance as of September 30, 2021, was $28,001,332. This amount was $10,408,316 above the policy‐required minimum. The FY23 budget includes a transfer of $600,000 from fund balance to fund the contingency. We are proposing a $2,000,000 transfer from reserves to fund the additional estimated costs for the North Fire‐Rescue Station. After these transfers, the remaining unassigned fund balance will be $25,401,332. Estimated compensated absence payouts totaling $829,500 will be paid from the reserve for compensated absences. Total excess reserves in all Town funds as of September 30, 2021, were $25,123,830.

For FY22, revenues are exceeding the budget estimates and are at 86.1% through May, and expenditures are close to budget estimates at 66.8% to date. We expect another surplus this fiscal year.

Compensation Update

People & Culture staff conducted an annual 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. Twenty (20) percent of all general positions and all sworn and certified positions were studied. The analysis of public safety market pay ranges resulted in increases to the minimum and maximum for all positions on the Fire Rescue step plan in order to bring the minimum and maximum to the 75th percentile inclusive of a Cost of Living Adjustment (COLA). The Police step plan will be increased for the Police Officer and the Police Sergeant position to bring the minimum and maximum to the 75th percentile inclusive of a Cost of Living Adjustment (COLA). The Police positions not of the Police step plan (Police Management) were also analyzed and resulted in


Executive Summary

Town of Palm Beach


increases to the minimum and maximum for all positions to bring the minimum and maximum to the 75th percentile.

The 20% of General employees that were studied this year remain competitive and within policy with thirteen exceptions. Thirteen positions were found to be below the 65th percentile of the market and have been re‐graded so that the maximum is between the 65th and 75th percentile. In order to remain competitive for the rest of the General positions, we have increased the salary ranges by 3% for all other General positions (unless they are at or above the 75th percentile).

Moving forward, due to the unstable market, People & Culture has determined a more proactive approach is required in order to ensure that all Town salaries remain market competitive in the coming years. Rather than undertaking a costly five‐year comprehensive Town salary survey, we propose to raise the annual review of all general positions from 20% to 33% to ensure that all positions are consistently reviewed within a three‐year period. It also proposes a more appropriate and market‐typical salary administration approach to ensure that salary scales are adjusted upwards on an annual basis from 25% to 50% of the CPI, thereby preventing the current practice of pay crowding at the top of each scale and avoiding the need for larger adjustments during those years when increased fiscal restraint is required.

Personnel Complement

Total FTE includes full time employees and part time no benefits employees (PTNB). The total personnel complement (for all funds Town‐wide) for FY23 is 362.59 full‐time equivalent personnel (FTE), which is a net increase of 12.16 FTE from the adopted FY22 budget. The increase of 12.16 FTEs in FY23 is made up of the following changes in full time and part time positions:







Applications Specialist


Enhanced IT systems and cyber security

Planning, Zoning & Building

Administrative Support


Costs absorbed by increased revenues

People & Culture



PT to Full Time

People & Culture

Benefits Specialist


Outsourced in previous budget




Support Operations


Police Officers


Increased security


Parking Enforcement


Increased enforcement


Planning, Zoning, Building

Construction Site Monitors


Shifted to full time FTEs for site monitoring. In addition to the 1.75 in FY22 for a total of 4

Planning, Zoning & Building

Zoning Technician


Costs absorbed by increased revenues


Pro Shop


Costs absorbed by increased revenues

Planning, Zoning & Building

Building Inspector



Planning, Zoning & Building

Combo Plan Reviewer




Part Time FTE’s


Change annually based on needs

Total FTE additions



Executive Summary

Town of Palm Beach


Other Funds

Below are highlights from the budgets for other Town funds. Additional information can be found at the tabs in the back of the Budget Document behind the General Fund information. The Town’s other funds include Special Revenue, Debt Service, Capital Improvement Funds, Enterprise Funds (Marina, Par 3 Golf Course and Building Enterprise Fund), Internal Service Funds (Health, Risk, Equipment Replacement), and Trust Funds (Pension and OPEB Trust).

Special Revenue Fund (122) Town wide Underground Utility Project

The Town wide Underground Utility Project fund accounts for the project costs and associated assessments and borrowings for the project. During FY23, we expect to finish construction of Phase 4 North and Phase 3 South. During FY23 work will continue on Phase 5 North and South 6 North and South and begin Phases 7 North and South. The entire project is expected to be completed in 2026.

In addition to the FY23 budget, a cash flow projection through 2026 using the updated opinion of costs is included in the Town wide Underground Utility section. The forecast has been updated to include the annual transfer of $2.6 million of Marina surplus funds to offset the prior project deficits. This transfer was approved last year and is included in the FY23 budget.

Debt Service Funds (205, 206)

The Debt Service Funds provide for the payment of principal and interest on the Town’s outstanding bonds.

The 2013, 2016A and 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 Enterprise Fund for the Town’s portion of the golf course and clubhouse renovation ($187,426), and a portion is funded through the Coastal Management Fund ($509,135). The non‐ad valorem revenue transfer from the General Fund for FY23 is $5,680,666.

The 2016B Series Revenue Bonds debt service appropriation of $723,513 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 FY23 on these bonds will be $3,848,755 and is included in the Town wide Underground Utility project fund.


Executive Summary

Town of Palm Beach


In 2020, the Town issued non ad valorem debt totaling $31,000,000 through a bank loan for the Marina construction project at an interest rate of 2.25%. The debt service for FY23 will be

$1,992,950 and paid through the Marina fund. This loan is structured to include a 1% prepayment premium during the first four years and no prepayment premium thereafter.

The Town’s outstanding Revenue Bond debt as of September 30, 2022, is shown on the table below:

Year Issued

Outstanding Principal Balance September 30, 2022




First Phase of the ACIP and Refund Outstanding Debt



Worth Avenue Commercial District Project



Remaining Balance on Second Phase of ACIP



General Obligation Bonds for Town‐wide Undergrounding Project



Taxable Refunding Revenue Bonds for Second Phase of the ACIP



Refunding of Remaining Balance of First Phase of ACIP Debt



Marina Loan



General Obligation Bonds for Town‐wide Undergrounding Project



As of September 30, 2022, the Town’s net bonded debt will amount to 15.1% of the legal limit of

$1,278,455,781 (5% of preliminary FY23 taxable value of $25,569,115,619).

Capital Improvement Funds (307, 309, 311)

For FY23, the following items totaling $9,308,345 are included in the Capital Improvement Fund (307):

The transfer from the General Fund to the Capital Improvement Fund is $4,871,020 an increase


Executive Summary

Town of Palm Beach


of $442,820 from FY22 due to the addition of the Town facility improvements that reflect the recommendations from a facilities study conducted in FY22. The study and allocation from the operating budget lend itself to improved financial planning and less reliance on transfers from reserves.

The American Rescue Plan (ARP) will provide the Town funding for sewer and drainage projects. We currently expect to receive a total of $4,415,526 from this source and have received the first of two installments of $2,207,763.

Coastal Management

The Coastal Management Fund (309) is used to fund the construction costs of the coastal projects. The details of the FY23 budget for Coastal Management can be found in the Annual Budget Document. This plan has been updated by Public Works to include estimates for future projects based upon current costs. The plan includes resiliency projects such as the Mid‐Town seawall. The costs estimates have increased to $18.5 million for this project and $7 million per year for the next two years has been added to the program. Also included in this budget is annual funding of $1,000,000 per year for the next ten years for seawall or bulkhead repair or replacement. We are proposing an increase in the annual funding for the coastal program of

$344,422 or 7% to begin to offset the Mid‐Town seawall costs. The additional funding from the FY23 budget should lead to less reliance on transfers from reserves.

Enterprise Funds (401, 402, 405)

Town Marina

Town Marina reopened for new vessels on November 1, 2021. FY22 has been a very successful year. The success is due in part to improvements in branding, marketing, and financial planning. To date through May, revenues exceed budget estimates by $1,507,668. The FY23 revenue budget is projected to be 31% or $3,024,239 higher than FY22 budget. The expenditure budget has increased by 18.6% or $447,109 due to increases in the submerged land lease, which is based on revenues, increases in salaries and benefits, promotional advertising, electricity, and contractual services. The projected net income for FY23 is 113% higher than the forecast prepared last year.

Par 3 Golf Course

Pending the Town Council approval of the recommended fees, Par 3 revenues are projected to increase over end of year estimates during FY23. The various FY23 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 $803,626 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 $236,538. Additional deductions


Executive Summary

Town of Palm Beach


from the operating profit include transfers for debt service ($187,426), contingency ($130,169) and the general fund transfer ($25,000).

To date, for FY22, the Par 3 revenues are above estimates at 102% of budget and will end the year well over the budget estimates. The Par 3 should end the year with a surplus. The LTFP forecast shows improvement to the net assets of the fund.

A memorandum and resolution are included in the backup for the proposed fee increases.

Building Enterprise Fund

The Building Enterprise Fund was created in FY21 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. FY22 revenues are expected to be higher than budget and will provide for a higher surplus than anticipated. Total revenues for FY23 are conservatively estimated to be $9,268,236 and total operating expenses are $8,268,236 which includes a transfer to the General Fund of $5,519,456, which is for the allocated costs that the General Fund provides to the building permit process. Building permit related revenues have increased by $1,227,797 due to the recent increase in building activity. After depreciation of $89,503 and a 5% operating expense contingency of

$187,439 there is a projected reduction in reserves of $276,942.

For the past two years, the budget included a $3,200,000 transfer to the General Fund for allocated costs. This amount was based on an estimate when the fund was established. After two years of operations, there is a better understanding of the true allocated costs. The FY23 amount represents the new allocation. At the end of FY22, a calculation will be made based on the new allocation and a true‐up amount will be transferred to the General Fund as directed in the Building Fund Reserve Policy adopted by the Town Council last year.

Internal Service Funds (501, 502, 320)

The transfer to the Risk Fund (501) has increased by $100,619 due to expected increases in the insurance market.

The transfer from all funds to the Health Insurance Fund (502) has increased for the first time since FY13 due to recent higher than normal claims experience. The increase in Town funding is

$737,914 or 20%. During FY21 the fund had a deficit of $601,379. This was the first deficit since 2008. A deficit is also expected for FY22. These 2 past years maybe an anomaly influenced or caused by the pandemic and individual catastrophic events. Due to the increase, we are


Executive Summary

Town of Palm Beach


proposing a 10% increase in employee contributions for their dependent health premiums. This is the first increase since 2014.

The Town of Palm Beach is proposing to re‐establish a Town Clinic, located at Public Works, on Old Okeechobee Road in West Palm Beach. The former clinic, originally opened in 1973 and staffed by a Town employee nurse, administrative assistant and PT physician, was closed in 2016 when it was decided that similar services could be provided by outside contractors at a lower cost.

In the years following, the complexity and costs of managing multiple contractors and employee absenteeism resulted in a re‐examination of the business model. The new model proposed differs from the former Town Clinic in that it will be fully outsourced (including the registered nurse practitioner, administrative support and physician oversight) to a single full‐service provider. Concentra, is the #1 national provider that specializes in occupational health management and effective and efficient coordination and oversight of workers compensation claims. With a focus on total employee health and return on investment to municipalities, the clinic will provide a level of service that will greatly increase overall employee health, reduce employee absenteeism, and the need for at least five departments to manage and administer multiple providers. This model also has the potential to reduce the costs of overall health insurance premiums through preventative health, early detection, group pharma purchases, and decreased claims for all Town employees. The clinic budget in the first year is estimated at $347K of which $40K are startup costs. The budget allocated for the most current model in 2022 was 108K with considerable unbudgeted and invisible additional costs which are outlined in the attached Annexes. More information regarding the proposed clinic can be found in the Internal Service Funds Section of this document.

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 FY23 actuarially determined contribution to the DB plan totals $11,457,243. The contribution decreased $288,762 due to the strong investment return for FY21. The return assumption will decrease from 6.6% in FY22 to 6.4% in FY23. If the Town Council chose to reduce


Executive Summary

Town of Palm Beach


the assumption to 6% this year, the Town Contribution would increase by $1,923,769 and the UAAL would increase by $24,961,949.

The budget also contains the $5,420,000 extraordinary contribution to the retirement plan. The funded ratio increased from 72.7% to 76.1% and the unfunded liability decreased from

$94,163,607 to $85,333,977. Assuming all assumptions are realized the total Town contributions to the retirement system, including the extra Town contributions of $5.42 million per year are expected to be in the range of $12.2 to $16.8 million over the next 8 years and are then projected to decline to around $4.9 to $5.5 million.

The Town contribution amounts by employee group are shown below versus the FY22 contribution. Legacy plan costs represent $8,275,061 (72.2%) of the total and the costs for the ongoing plan are $3,182,182 (27.8%).

Town DB and DC Retirement Contributions

Town Retirement Contributions



$ Change

% Change

General Employee DB





Lifeguards DB





Police DB





Fire‐Rescue DB





Total DB Contribution





Total DC Contribution





Total Town DB and DC Contribution





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:


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





























Health Insurance (OPEB) Trust (610)

The actuarially determined transfer to the OPEB trust from the General Fund in the FY23 budget is $331,217. This amount is $2,998 less than FY22. The funded ratio in the September 30, 2021, actuarial report was 147.8% at the 5% rate.

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


Executive Summary

Town of Palm Beach


and debt service. These costs are fully offset by the assessments charged to property owners within the district.

Tentative Millage Rate

Resolution No. 091‐2022 adopts a tentative millage rate of 2.8966. This rate is set at the same rate as last year in case changed circumstances and/or Town Council decision later this summer require the final millage rate to be set higher than the proposed rates under consideration. Florida law requires a first class mailing to all taxpayers if the millage rate is increased above the tentative millage rate adopted by the Town Council prior to the September public hearings. The final millage rate will be set at the public hearings in September.

Long‐Term Financial Plan

The Long‐Term Financial Plan (LTFP) will be updated with the FY23 adopted budget and will be finalized in September.

Upcoming Meeting Schedule

The State mandated schedule requires that two public hearings be held in September to provide for the final adoption of the Town’s FY23 budget and millage rate. The proposed public hearing meeting dates are as follows: These dates are presented in the Millage Rate Resolution and provided to the Property Appraiser.

Whenever possible the Department has sought to contain costs by planning for the launch of multiple new P&C programs using internal staff and minimizing the use of outside consultants except for those key areas.

Employee Health (Internal Service Fund 502) FY23 Estimated Request $7,339,521 FY22 Adopted $5,988,795

The overall Employee Health budget is expected to increase by 21.2%. . Expenses and operations associated with Employee Health are managed by People and Culture staff. FTE allocations of staff were more appropriately adjusted for the new FY period, resulting in an increase in the salaries and associated payroll items. Rates for Stop Loss coverage increased during calendar year 2022. Claims in the last FY increased significantly due to a couple of factors: 3 large employee claims where the Stop Loss coverage was utilized and COVID-related claims. The COVID-related claims were not necessarily all COVID virus related; they were due to the period when employees were not utilizing the plan and attending to their preventative visits. This resulted, in some cases, in more serious or advanced issues or additional claims to address what may have been addressed or caught in earlier stages with preventative visits. Costs for claims are expected to level out in FY 2023. In the previous six fiscal years, expenses associated with the Employee Health Fund remained relatively flat, this fiscal year being the first in several years where we have experienced such a significant increase. The cost for the proposed clinic (335K) is included in the Other Contracted Services, in anticipation of contracting with a new vendor for clinic services.

OPEB Trust (Fund 610)

FY23 Proposed Request


FY22 Adopted


The overall OPEB Trust expenses are projected to decrease by 10% in Plan Year 2023. Increases to payroll related items are associated with the reallocation of FTEs within the People and Culture Department. The change in the Medicare Part D line item and Ancillary Charges appears to be a keying error in FY22’s budget process.




People and Culture Town of Palm Beach


P&C Specialist (Benefits)

P&C Administrative


P&C Coordinator

P&C Generalist (Benefits)

P&C Manager

Town Clinic (Occupational Health) Outsourced

P&C Analyst - HRIS

Division Director of People & Culture