2018


2018


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Comprehensive Review of

Town Operations


EXECUTIVE SUMMARY

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Final Report

Presented on: March 5, 2018

CONTENTS

CONTENTS

Introduction 2

Overview of CRTO 2

Townwide Benchmarks 3

A ‐ Cost savings measures to be implemented immediately or in FY19 budget 4

Updated Financial Status – After Staff Recommendation 16

B – Potential Revenue options and other expenditure considerations 16

Other Fund Considerations – Policy Action 24

C‐ Additional Options for Future Cost Savings – Not Recommended 25

Long Term Financial Plan ‐ Update 32

INTRODUCTION

INTRODUCTION

The Executive Summary was prepared to facilitate the review of the final CRTO recommendation to the Mayor and Town Council in one meeting.

This Executive Summary is the final version of the draft summary prepared and released on January 31, 2018. Upon the appointment of new Town Manager, Kirk Blouin, on February 13, 2018, he met with Deputy Town Manager, Jay Boodheshwar, and Director of Finance, Jane Struder, to develop a review plan for the entire draft CRTO report with each department head and other key members of the staff. After two week weeks of discussion and analysis, the final Executive Summary was completed. Said summary includes some items that were included in the initial executive summary but were either removed or modified in the final report after further discussion with department heads.


OVERVIEW OF CRTO

OVERVIEW OF CRTO

Town staff reviewed available options and brainstormed on how to do things more efficiently, effectively and creatively, while reducing expenses. The results do not include any major cuts or reductions in Town services. Instead, current Town staff will be required to take on additional workload and will be challenged to continue finding ways to deliver services through the most cost effective means. The recommendations presented in this document will be fine‐tuned and presented with the Long Term Financial Plan and in their final form during the FY19 budget process.

There are three tables (A, B and C) in the executive summary used to categorize the cost reduction and revenue enhancement recommendations/options identified by staff.:

  1. This table includes a summary of staff’s recommendations for savings that we will be implementing immediately and/or beginning with the FY19 budget.

  2. This table includes potential revenue options and other expenditure reduction options requiring policy decisions by the Town Council.

  3. This table includes a list of other options for future cost savings that are not recommended at this time but the Town Council could consider if necessary.

    TOWNWIDE BENCHMARKS

    TOWNWIDE BENCHMARKS

    Listed below are Townwide statistics such as population, taxable value, millage rates and other relevant information, as compared to those of our benchmark communities, which includes West Palm Beach, Boca Raton, Jupiter, Palm Beach Gardens, and Delray Beach.


    Palm Beach

    West Palm Beach

    Boca Raton

    Jupiter

    Palm Beach Gardens

    Delray Beach

    Population

    8,291

    110,150

    91,797

    61,388

    52,591

    65,804

    Square Miles

    3.77

    55.29

    28

    23.1

    56.17

    16.5

    Total Parcels

    9,449

    45,894

    42,506

    30,344

    26,802

    32,654

    Taxable Value

    15,929,537,777

    11,015,846,755

    21,006,538,921

    9,688,097,662

    9,030,222,717

    8,808,152,637

    FTEs

    362.87

    1598

    1,499

    374.38

    496

    846

    Bond Rating GO

    Revenue Bond

    AAA AA+

    AA

    AAA

    AAA AA+

    AAA

    AAA AA3

    Ad Valorem taxes as a % of GF Revenue

    64.40%

    40.1%

    29.0%

    40.3%

    50%

    54.1%

    Unassigned Fund Balance as % of GF Expenditures

    34.85%

    23%

    22.9%

    47.1%

    28.2%

    25%

    Minimum Fund Balance

    25%

    Emergency Reserve 10%

    Minimum 3%

    10%

    25%

    17%

    Between 15% and

    25%

    Total General Fund Budget FY17

    76,852,377

    170,974,580

    209,708,700

    46,538,179

    81,731,610

    111,490,730

    Total Budget FY17

    131,992,476

    556,349,511

    687,141,700

    89,948,068

    100,839,144

    208,516,932

    Municipal Tax Rate

    3.2706

    8.3465

    3.4543*

    2.4633*

    5.55

    6.9611

    Debt Service Tax Rate

    0

    .1481

    .2245

    .2330

    .1178

    .2496

    Additional Millage – PBC Fire Rescue

    0

    0

    0

    2.0038

    0

    0

    Palm Beach

    West Palm Beach

    Boca Raton

    Jupiter

    Palm Beach Gardens

    Delray Beach

    Overall Tax Rate

    17.2001

    22.4241

    18.5231

    19.3371

    20.2009

    21.1402

    Solid Waste Collection Fees

    None

    Yes

    Yes

    Yes

    None

    Yes

    Fire‐Rescue Assessment

    None

    Yes

    Yes

    No – County Fire

    None

    None

    Other Fees – Not charged by the Town of Palm Beach

    N/A

    Impact Fees Water Sewer Stormwater

    Water Sewer Service Impact Fees Stormwater

    Reclaimed water Cemetery

    Water Stormwater

    Impact Fees

    Water Sewer Stormwater

    *Includes a CIP millage


    TABLE A ‐ COST SAVINGS MEASURES TO BE IMPLEMENTED IMMEDIATELY OR IN FY19 BUDGET

    TABLE A ‐ COST SAVINGS MEASURES TO BE IMPLEMENTED IMMEDIATELY OR IN FY19 BUDGET

    The table below summarizes a list of recommendations from staff of expenditure savings. Most of the savings are direct General Fund reductions. Some reductions are in other funds, but would affect the transfers from the General Fund into these funds. This list of reductions totals

    $2,732,647, with almost all causing the baseline budget to reset. Although we expect savings to begin in the current fiscal year, many of these expenditure reductions will not occur until the FY19 budget. The numbers listed in the chart below show the projected impact on the FY19 budget. Other recommendations need further analysis to determine the total impact to future budgets. These items show a “TBD” (To be Determined) in the FY19 budget impact section.


    No. Recommendation Description FY19 Budget Impact

    Fire‐Rescue Department

    1

    Quint at Central Fire Station

    Eliminate a ladder truck and fire engine at Central Fire Station and replace with a single unit (Quint) – page 13

    One time savings

    $649,751

    2

    Elimination of 3 firefighter positions

    Eliminate 3 firefighter positions through attrition due to the implementation of the Quint – page 13

    $179,052 plus

    benefits

    3

    Reduce Midtown beach lifeguard staffing

    Reduce the staffing at the Midtown beach from 3 lifeguards to 2 lifeguards except on busy holidays or summer days. – page 23

    $32,000

    No.

    Recommendation

    Description

    FY19 Budget Impact

    4

    Reclassify Administrative Coordinator Position

    Through attrition, reclassify this position to an administrative clerk position. – page 8

    TBD

    5

    Reclassify Office Manager Position

    Through attrition, reclassify this position to an Administrative Assistant Position – page 8

    TBD

    Finance Department

    6

    P Card Rebate

    Implement new Purchasing Card system and use P Card to pay many of the Town’s vendors. – page 11

    $42,507

    7

    Eliminate PT Warehouse Position by Implementing Just‐in Time Inventory

    Re‐engineer warehouse operations to Just‐in‐time inventory model with the goal to reduce inventory from 2,200 items to 1,000 items within the next eighteen months. Allow for the elimination of part time position and carrying cost of the excess inventory. – page 14

    $18,088

    8

    Eliminate printing of annual budget document

    Final budget document will be available online – page 7

    $2,000

    9

    Sale of surplus equipment

    Pursue online sources for the sale of surplus equipment and vehicles – page 12

    Increased salvage

    value for all equipment

    10

    Review Purchasing positions as staff retires

    Conduct a review of purchasing staff positions as retirements occur and possibly reduce a position through planned efficiency measures – page 15

    TBD

    11

    Purchase Electric Cars

    Purchase electric cars on state contract for some of the fleet and Nissan will provide 3 free charging stations. Explore the possibility of a pilot program for little or no cost. – page 17

    TBD

    Police Department

    12

    Eliminate Public Safety Director Position

    The Town Manager will directly supervise both Police and Fire Rescue Departments. – page 7

    $216,181 plus

    benefits

    No.

    Recommendation

    Description

    FY19 Budget Impact

    13

    Reclassify Records Manager

    Reclassify to Police Records Specialist ‐

    page 11

    $46,079 plus

    benefits

    14

    Reclassify (1) Office Assistant to Part‐time no benefits

    Reclassify the Office Assistant in the Training & Community Relations Unit to a part‐time no benefits through attrition

    – page 14

    $25,604 plus

    benefits

    15

    Cross‐Over Training Reimbursement

    Require newly hired officers who participate in Comparative Compliance Training to reimburse Town if they leave prior to completing 3 years of service.

    – page 14

    $1,000‐$5,000

    16

    Reduce Officer Overtime

    Hire contractual officers at a rate of

    $30‐$35 per hour to work instead of officers working overtime at an average rate of $45. – page 25

    $50,000 (based on 2,500 hours

    which is approximately 50% of total

    17

    Eliminate (1) Business & Community Relations Officer

    The department currently has 2 BCR officers. – page 25

    $52,275 ‐ $91,528

    plus benefits

    18

    Master Mechanic Reclassification

    Reclassify the Master Mechanic position to Mechanic. – page 26

    Approx. $20,000

    19

    Special Assignment OT

    Hire contractual police officers to fill Special Assignment Overtime Details – page 25

    $6,240

    20

    Vehicle Washer/Oil Changer

    Hire a temporary position with no benefits to wash and detail police cars – page 26

    TBD

    Human Resources and Pay and Benefits

    21

    Merit Pay

    Modify the pay for performance ranges effective October 1, 2018 to Model C shown on the following table – Employee Compensation, page 22

    $222,433

    No. Recommendation Description FY19 Budget Impact

    image

    22

    Review Ranges

    Review 1/5th of all positions each year to determine if pay ranges are in line with the market. Forego annual pay range adjustments and provide a lump sum performance increase for employees at top of range. – Employee Compensation, page 21

    TBD

    23

    Freeze the Longevity program

    Freeze longevity program at the FY18 payout and allow a one‐time option for employees in this program to transfer to the merit based bonus program. – Employee Compensation, page 14

    $38,607

    24

    Amend Bonus Program

    Amend bonus program to eliminate 10th percentile payments – Employee Compensation, page 15

    $2,500

    25

    Amend Cell Phone Stipend

    Reduce stipend for cell phone use due to business necessity based on peer/market data. – Employee Compensation, page 12

    $35,370

    No.

    Recommendation

    Description

    FY19 Budget Impact

    26

    Amend Tuition Reimbursement benefit

    Establish a reimbursement cap of

    $3,000 per year for an undergraduate degree and $4,000 per year for a graduate degree. Restrict eligibility for employees with less than 3 years of service with the Town and employees in the DROP Program. – Employee Compensation, page 8

    TBD

    27

    Cap Reimbursement for Fees and Books

    Cap the reimbursement for fees and books to $250 per year. – Employee Compensation, page 9

    TBD

    28

    Reduce call back pay

    Reduce call back pay from a minimum of 4 hours to 2 hours for all employees. – Employee Compensation, page 10

    TBD

    29

    Contract Nursing

    Eliminate the Occupational Health

    Savings TBD plus;

    services and

    Nurse but replace with on‐site

    $117,350 in

    reorganize program

    contracted services; reclassify a current

    projected health

    employee to provide for wellness, and

    claim savings

    oversight of required employment

    (502 Health Fund

    related medical and leave related

    impact)

    matters. – page 10

    30

    Reduce townwide training

    Eliminate interview selection training and management training in FY19. – page 16

    $15,600

    31

    Assessment system

    Eliminate behavioral based interview assessment system – page 18

    $10,500

    Public Works Department

    32

    Eliminate vacant PW Office Assistant position.

    Temporary external assistance would be used as necessary. – page 13

    $45,000 plus

    benefits.

    33

    Sidewalk replacement

    The current program repairs structural

    $2,000

    program – Change the

    cracking, replaces damaged flags of

    program to include

    sidewalk that have become tripping

    grinding down tripping

    hazards in the town’s right of way.

    hazards in sidewalk in

    Replacement of sidewalks will still

    lieu of replacement in

    occur, but small repairs may now be

    certain cases.

    grinded down – page 15

    No.

    Recommendation

    Description

    FY19 Budget Impact

    34

    Outsource the beach cleaning program

    Town staff has developed a scope of work to obtain bids on the beaching cleaning performed at public beaches. The employee that had been performing this function has retired. If the cost savings are favorable, the work will be contracted out. An alternative (if bids are not favorable) may be to hire a part‐ time employee and have that worker assigned to the Lifeguard group who would manage the beach cleaning task.

    – page 54

    TBD

    (Depends on bid results obtained)

    35

    Commercial Street Sweeping

    Reduce frequency of services from 3 times per week to twice per week – page 16

    $32,000

    36

    Lake Trail Sweeping

    Reduce to once every other week, year around in lieu of once per week off season and twice per week during peak season. – page 16

    $4,160

    37

    Generator Training

    Train technician I position to allow for in‐house repairs and maintenance – page 28

    $5,000

    No.

    Recommendation

    Description

    FY19 Budget Impact

    38

    Conduct an investigation of inflow & infiltration into the Town’s sanitary sewer system.

    Currently, the Town’s sanitary sewer collection system must handle not only sewage effluent but also groundwater or rainwater that enters the system (through damaged piping, cross‐ connects from stormwater drains, high groundwater table, etc). The additional flow results in higher electric bills, more wear and tear on pumping systems, and greater sewage treatment costs. A consultant would be able to provide technical assistance in evaluating and determining causes and solutions.

    Resulting projects could be identified and a life‐cycle cost analysis would determine what the payback would be to implement a solution. – page 36

    TBD

    39

    Fire Alarm and security monitoring

    For Town buildings, eliminate the second party security monitoring and have PBPD monitor the alarm calls – page 61

    $12,800

    40

    Convert existing street lights to LED fixtures

    For Town‐owned street lights, when they require repair or replacement, the new lights will be converted to LED to save costs for electricity and maintenance. Retrofit kits are available to convert existing street lights to the LED fixture, and that will be done as opportunities are available. – page 23

    TBD ‐Life cycle cost savings over life of the street

    light

    41

    Transfer maintenance to PBC

    Transfer maintenance to PBC for all 18 town owned signalized traffic intersections – page 19


    TBD

    42

    Air Conditioning Maintenance

    Reduce frequency of air conditioning maintenance to bi‐monthly maintenance – page 62

    $17,710

    No.

    Recommendation

    Description

    FY19 Budget Impact

    43

    Reduce hedge‐ trimming frequency from 10 services per year to 8 services per year.

    The Town has adjusted the current schedule to limit trimmings in the winter months and add services during peak growing periods. – page 58

    $16,960

    44

    Eliminate all parts, equipment and maintenance/warranty costs associated with ownership of the parking kiosks.

    The capital lease for the new parking kiosks is $70,511.64 per year and is paid from the Equipment Replacement Fund with the depreciation amount from the old kiosks. – page 64

    $55,073/yr.

    45

    Eliminate Engineering Technical Support position – Engineering Program and Coastal Protection Fund

    This was a new position in FY 2017 supporting the engineers in the Engineering Department and the Coastal Program. – page 67

    $74,000/yr. – Salary (midpoint) plus benefits.

    46

    Eliminate the recently approved FTE for a 2nd ROW inspector position and the associated vehicle and equipment.

    This position was intended to increase patrolling of the Town Right of Way in an effort to increase compliance with the Right of Way permitting requirements but staff believes we can accomplish this goal without this additional position. – page 69

    $75,390 salary plus benefits.

    Town Manager and Related Programs

    47

    Reduce Emergency Management Budget

    Reduce most of the Emergency Management Budget and move duties to Fire‐Rescue – page 27

    $50,404

    48

    Eliminate Administrative Assistant position in Town Clerk Office

    Reallocate duties of this eliminated position among staff in the TMO and Town Clerk’s office – page 24

    $38,724 plus

    benefits

    49

    Eliminate Communications Specialist position

    Eliminate the vacant communications specialist position – page 13

    $100,000 plus

    benefits

    50

    Reduce Memberships

    Eliminate membership in Rotary Club and Urban Land Institute – page 14

    $2,000

    No.

    Recommendation

    Description

    FY19 Budget Impact

    51

    Reduce travel for training

    Reduce travel and training for TMO Staff

    – page 14

    $1,500

    52

    Outsource IT functions

    As additional technology is adopted, we will look for ways to outsource some of the IT services through attrition. – page 21

    TBD

    53

    Paperless Agenda Packets

    Savings in printing costs and labor – page 23

    $7,500

    54

    Eliminate paper copies of Code Supplement

    Everyone will able to access the Code online. – page 24

    $8,000

    55

    Professional Memberships

    Reduce funding for professional memberships and education reimbursement for TCO – page 24

    $4,000

    56

    Workers Compensation

    Follow Florida Statute 440 wage payments and allow the employee to supplement wages by using their accumulated leave if necessary. – page 29

    TBD

    57

    ERF Depreciation

    Extend the life of all necessary equipment by 1 year – New

    TBD

    Planning Zoning and Building Department

    58

    Document Management Position

    Re‐classify position to a lower pay grade

    – page 16

    $22,500

    59

    Turnaround permits

    Issue turnaround permits that will not need to be reviewed – page 16

    Unknown Savings

    60

    Inspection

    Accept affidavits for certain types of permit inspections – page 19

    Unknown Savings

    61

    Eliminate summary letters for ARCOM and Landmark Preservation Commissions

    Written summaries are done for all ARCOM and Landmark Preservation Commission projects once complete. Letters take 30 minutes of staff time on average and 212 letters were written in FY 2017. – page 16

    Improved Efficiency

    62

    Landmarks

    Eliminate or charge a fee for Certificate of Appropriateness letters – page 21

    29 hours of staff time or $2,000 of

    revenue

    No.

    Recommendation

    Description

    FY19 Budget Impact

    63

    LPC Fees

    Increase COA fees for modification of landmarked houses – page 21

    Up to $56,000

    64

    Eliminate Assistant Director Position

    Eliminate the Assistant Director position and reallocate duties within the department – page 12

    $100,000 +

    benefits

    Retirement Fund

    65

    Timing of Retirement Contribution

    Make entire contribution to Retirement fund on October 1, each year (FY17 savings to be applied $236,676 and FY18

    $245,186) – page 8

    $250,000

    66

    Minimum Working Hours

    Amend code to increase working hours in order to be eligible for retirement benefits from 1,040 to 1,850 – page 9

    Improved operations and less turnover

    Health Insurance Program

    67

    Addition of international prescription provider (IPP)

    Incorporate an international prescription provider (IPP) to the prescription plan, providing safe discounted name brand maintenance medications at a reduced cost if allowable. – page 12

    $95,000

    68

    Amend stop loss coverage

    Amend the ISL deductible from

    $100,000 to $125,000 for the 2018 plan year, to take advantage of the premium savings in a manner that poses the least amount of risk to the Town. – page 12

    $33,219

    No.

    Recommendation

    Description

    FY19 Budget Impact

    69

    Conduct a Dependent Eligibility Audit

    Strengthen existing diligent practices of requiring proof and proper legal documentation proving dependent eligibility within employer sponsored insurance plan. Large‐scale audit conducted and best practices implemented in 2010 to ensure non‐ fraudulent dependent

    enrollment. However, to ensure complete adherence to eligibility rules the active employee and retiree insurance groups shall be audited to ensure there are no dependents inadvertently enrolled on the plans. – page 14

    $40,000

    70

    Review the possibility of dental coverage thru a DHMO plan, with optional buy‐up to DPPO/DPOS plan.

    Review changing the Town’s dental plan insurance to include a Dental Health Maintenance Organization (DHMO) for employees, with an option to buy‐up to a Dental Preferred Provider Organization (DPPO) plan. Review will take place in 2018 for possible implementation in 2019. – page 16

    TBD

    71

    Health Insurance

    Evaluate plan design to identify additional potential savings – page 16

    TBD

    Recreation Enterprise Fund

    72

    Reduction in Hours of Private Security

    A private professional firm currently provides security guards at the Town Docks from 5:00 pm to 8:00 am, 7 days per week. . A minor adjustment of service hours to 5:00 pm to 6:00 am would result in a savings of approximately $10,000 a year. – page 10

    $10,000

    No.

    Recommendation

    Description

    FY19 Budget Impact

    73

    Re‐classify Senior Golf Associate position

    Through attrition, evaluate the pros and cons of either re‐classifying the Senior Golf Associate position, contracting duties and/or reallocating responsibilities among existing staff. – page 17

    Up to $27, 411 (plus benefits)

    74

    Pull cart replacement schedule reduced to every other year

    Approximately 12 pull carts, from a fleet of 27, are replaced each year. These carts are kept outdoors, due to a lack of interior storage space so they must be replaced no less than every other year.

    – page 19

    $2,000 every other year

    75

    Close all year round on Thursday – Monday at 6:30 pm, from May to October at Seaview Tennis Center, except for special events and programs.

    According to usage records, closure of Seaview Tennis Center from May to October at 6:30 pm on Thursdays – Mondays would have minimal impact on patrons. On average, one player a day utilizes the facility from 6:30 pm to 8:30 pm. – page 25

    $1,250

    Approximate Total – General Fund

    (Plus Benefits for personnel cuts)

    $2,732,647

    Approximate Total – Recreation Fund

    (Plus Benefits for personnel cuts)

    $40,661

    UPDATED FINANCIAL STATUS – AFTER STAFF RECOMMENDATION

    The next section contains potential new revenues or revenue increases for the Town Council to consider, it also includes expenditure cuts that staff believes require Town Council input. The conservative total of all of the options that relate to the General Fund shown below is approximately $1,108,071.


    TABLE B – POTENTIAL REVENUE OPTIONS AND OTHER EXPENDITURE CONSIDERATIONS

    TABLE B – POTENTIAL REVENUE OPTIONS AND OTHER EXPENDITURE CONSIDERATIONS

    This section contains potential revenue increases or new sources as well as other expenditure reductions that may result in minor reductions in service and would require Town Council policy decisions.

    No.

    Revenue

    Description

    Annual Revenue

    Town Manager

    1

    4th on Flagler Funding

    Reduce or eliminate funding for Fourth on Flagler event – page 11

    $12,000

    2

    Legal services

    Consider other options for Town attorney services. Review options for an in‐house attorney and/or contractual services – page 17

    TBD

    Finance Department

    3

    Lien Search Fees

    Increase lien search fees from $35 to $75 and expedited review from $100 to $150. ‐ New

    $40,000

    Police Department

    4

    Dispatching Fees

    Offer consolidated Emergency/Non‐Emergency

    $50,000 ‐

    Dispatching services to other surrounding

    $150,000

    municipalities (i.e. South Palm, Manalapan,

    depending on #

    Ocean Ridge) – page 16

    of agencies

    5

    Voluntary ID Card Fee

    Increase the Voluntary ID Card fee from $15 to

    $20 per card. – page 19

    $9,850 (based on avg. # past

    2 years)

    6

    Reimbursement of POTUS

    Overtime

    Revise OT policy to include the first 7 hours worked related to POTUS to be included overtime calculation to increase reimbursement revenue from grants. – page 22

    TBD

    7

    Add Kiosks

    Add kiosks at high demand parking areas

    $845,626

    throughout Town

    and/or –

    Increase Parking

    Increase meter rates by $1 per hour – page 30

    $250,000

    Meter Rates

    No.

    Revenue

    Description

    Annual Revenue

    8

    Valet Parking Permit Fees

    Increase valet parking permit fees from $300 to

    $400 per year. – Executive Summary, page 11

    $2,800 annually

    Planning, Zoning and Building

    9

    Provide Zoning Determination Letters for a fee

    Zoning staff currently does not provide Zoning Determination letters. This service could be offered for a fee. ($100) – page 11

    $20,000

    10

    Create digital

    Create a process for digital submission and

    Unknown

    submission for all

    review of all applications. If manually

    building permit,

    submitted there will be a higher fee. – page 15

    business tax

    receipt, Zoning,

    ARCOM and

    Landmark

    application

    11

    Fee for searching

    There currently is no fee for searching and

    $20,000

    online for

    printing warranty deeds, insurance certificates

    warranty deeds,

    etc, needed for permit application submittal.

    insurance

    ($50) – page 14

    certificates and

    other information

    needed for

    permit submittal

    12

    ARCOM Deferral Fee

    Charge a fee for ARCOM application deferrals requested by the applicant. In addition, charge a fee for resubmittal of revised plans.

    Currently, there is no charge for a deferral and/or resubmittal. ($600) – page 14

    $24,500

    13

    Increase LPC application fees

    Per the LPC benchmarks, COA fees are not covering the cost of administering the COA process. Fees would need to be raised from

    $150 to $500 for minor and $750 to $2,000 for major projects to cover the Town’s cost.

    Alternatively, the Town Council could choose to phase in the cost over several years. – page 21

    $122,623

    No.

    Revenue

    Description

    Annual Revenue

    14

    Fees for land development applications

    Zoning application fees for site plan reviews, special exceptions and variances have not increased in ten years. To account for inflation, the fees would need to be raised by about 20%

    − New

    $41,485

    15

    ARCOM Fees

    ARCOM fees for staff level, minor, and major projects are $150, $250, and $750, respectively. These fees have not increased in 10 years while the amount of staff time and inflation has increased over this time. We recommend increasing fees to $300, $500, and

    $2000. – New

    $200,350

    Public Works

    16

    Increase rates on Special Pick Up Service.

    Increasing current rates of $88 for ¼ truck,

    $176 for ½ truck, $264 for ¾ truck or, $350 for full truck by 20% would raise revenue (based on current loads). – page 15

    $3,855/yr.

    17

    Outsource the collection of vegetative debris (yard trash) from the right‐of‐way

    Town staff recommends a pilot program to use contracted services to accomplish the collection of yard trash, and to bid out the service for one zone/route in Town on a trial basis. If the cost savings and customer satisfaction is positive, the pilot program can be expanded Town‐wide in a multi‐year approach. A transition plan to reallocate current employees would be developed. – page 47

    TBD

    (Depends on bid results obtained)

    18

    Fee for private lateral locates.

    Charge the property owner for privately owned lateral locates. Approximately 48 per year. – page 30

    $12,000/yr. (if charged

    $250 ea.)

    19

    Establish and/or enforce fines and penalties for non‐ compliant commercial grease traps.

    The revenue would be dependent on the commercial property owners’ compliance, so therefore is difficult to estimate with any certainty. – page 30

    TBD

    No.

    Revenue

    Description

    Annual Revenue

    20

    Charge a cap‐off and connection fee

    Cap‐off and connection inspections are required when a private sewer lateral connection is installed or repaired and whenever a connection inspection is performed. $300 fee – page 32

    $6,000

    21

    Increase ROW permit fees by 20%

    Current fees vary according to the permit requested. Raising all of the applicable fees by 20% is estimated to result in approximately

    $75,000 or more in additional revenue. – page 69

    $75,000

    Personnel and Benefits

    22

    Amend the PERC

    Allow commission member to serve on PERC as well as another Town board at the same time – Human Resources, page 20

    No Cost

    23

    Increase General Employee DB Contribution

    Increase General and Ocean Rescue employees DB Contributions. Every 1% increase results in

    $100,108 in additional contributions – Retirement, page 11

    $110,108

    24

    DC Plan for new hires

    Provide a DC only plan for new hire General Employees and Ocean Rescue and close DB plan to new entrants – Retirement, page 12

    No initial cost

    savings.

    Coastal Protection

    25

    Federal Cost‐ Sharing

    Through completion of General Reevaluation Report for Mid‐Town and subsequent inclusion within a Federal budget. The next Mid‐Town project is planned for FY 2021 with an estimated cost of $17,850,000. A 50% Federal cost‐share would result in the revenue enhancement of $8,425,000 through Federal reimbursement. – Public Works, page 74

    $8,425,000 per project through

    Federal reimbursement. Estimated 1 project every 7‐

    8 years.

    No.

    Revenue

    Description

    Annual Revenue

    Recreation Enterprise Fund

    26

    Increase Utility Fees for Transient Boats

    Raising the electric utility fee, which is a per day/per cord assessment, for transient boaters will enable the Town to recoup the costs directly associated with wifi, water, electric, cable, trash and waste water. This fee increase would not price us outside the current market rates.


    − Page 8

    $41,000

    27

    Late Fees for Utility Fees not Paid by the End of the Month Due

    Imposing a late fee of 10% of any outstanding monies due for utility fee invoices not paid by the date due, can help to encourage timely payments – page 8

    $2,000

    28

    Increase all dockage rates.

    The recommendation to increase in dockage rates for annual leases and transient visitors is based upon current market and economic conditions. Rate increases are being proposed at a percentage similar to last fiscal year with annual lease increases at 8% for single phase, 10% for 100 amp three phase and 14% for 200 amp three phase. Transient rate increases of 6% increase for single phase, 10% for three phase spots and 16% for 200 amp three phase are being proposed. – page 9

    $305,531


    Shore Power


    Current Cost per day/per cord


    Proposed Fee

    up to 50 amp


    $10.00


    $15.00

    100amp single phase


    $20.00


    $30.00

    100 amp three phase


    $50.00


    $60.00

    200 amp 3‐

    phase 480 V


    $150.00


    $200.00


    Shore Power


    Current Cost per day/per cord


    Proposed Fee

    up to 50 amp


    $10.00


    $15.00

    100amp single phase


    $20.00


    $30.00

    100 amp three phase


    $50.00


    $60.00

    200 amp 3‐

    phase 480 V


    $150.00


    $200.00

    No.

    Revenue

    Description

    Annual Revenue

    29

    Fee Structure Revision – Creation of higher greens fees at Par 3 for Friday, Saturday, Sunday and Holidays

    Raising the greens fee by $2.00 per round on Friday, Saturdays, Sundays and Holidays will generate a revenue increase. Charging a premium rate for the most heavily played days of the week is a practice utilized at many courses. – page 15

    $25,000

    30

    Enhance rental club sets by adding a sleeve of 3 balls and seek alternative vendors for rental club set purchases to reduce cost.

    The fee for a premium set of rental clubs is currently $30. The proposed new fee for the premium rental clubs with a sleeve of balls will be $40.00. The cost for a sleeve of balls is

    $2.50. In fiscal year 2017, approximately 2,200 golf club sets were rented. – page 15

    $5,500

    31

    Establish an Off‐ Season Pass Program

    Program would run from June – October. This program would include discounted greens fees and range use, as well as merchandise discounts. The cost would be $250 for 5 months. – page 15

    $5,000

    32

    Purchase ten (10) additional golf carts.

    The Par 3 Golf Course currently owns 20 gas golf carts. In addition, 7 carts are rented for 6 months and 3 additional carts are rented for 12 months. Each cart averages approximately

    $9,000 a year in revenue. Carts are frequently unavailable during the reduced inventory times of the year resulting in lost revenue.

    Purchasing an additional 10 gas golf carts in lieu of the rentals, bringing the year round fleet to 30 carts would minimize the unavailability of carts and produce additional revenue. The funding source for the purchase of these carts would be the Golf Course Maintenance & Improvement Fund. – page 15

    $31,500

    No.

    Revenue

    Description

    Annual Revenue

    33

    Extend hours of operation of golf course.

    The extension of play time to 7:00 am to 8:30 pm from March 1 to October 31, creates a potential for over 36 additional player rounds and increased usage at the driving range. The cost associated with these additional operating hours is estimated at $27,000. This cost includes staffing for the Pro Shop and Cart Area. Cost increases are also expected for maintenance of the course. Labor costs will rise as a result of the need for staff to work between play in the morning, causing a delay in work being completed. Conservative estimates for revenue generated from the extension of hours is approximately $88,000. – New

    $61,000

    34

    Increase cost of tennis mixers program

    The current fee of $1.00, plus court fees, to participate in mixers, has been in effect since approximately 2010. Raising the rates of mixers from $1.00 to $2.00 and non‐residents from $1.00 to $4.00 and offer multiple mixer packages, would increase revenue. – page 23

    $4,000

    35

    Solicit corporate sponsorship for tennis events and programs.

    The use of select local business sponsorships for programs and events would assist in increasing the cost recovery of the tennis operation. Guidelines and policies would be established to clearly define partnership parameters. Areas available for sponsorship could include the quarterly newsletter, mixers, tournaments and special events. – page 23

    To Be Determined

    36

    Increase all daily court rates.

    Raise daily court fees by .50 and 12 play passes (buy 12 get 1 free) by $6.00 will assist in enhancing the cost recovery goals for the facility. This raise in fees does keep the facility within local market parameters. – page 24

    $6,000

    No.

    Revenue

    Description

    Annual Revenue

    37

    Raise non‐

    A 25% fee differential is reasonable and not

    $12,500

    resident

    inconsistent with pricing policies for non‐

    differential from

    residents in other communities – page 28

    15% to 25% over

    resident rates.

    38

    Solicit corporate

    The use of select local business sponsorship for

    To Be

    sponsorship for

    programs and events would assist in increasing

    Determined

    Recreation

    the cost recovery of the recreation center.

    Center events

    Guidelines and policies would be established to

    and programs.

    clearly define partnership parameters. Areas

    available for sponsorship could include the Rec‐

    Connect quarterly publication, special events,

    youth athletics and adult programs. – page 28

    39

    Create a

    A separate reserve to cover costs associated

    $7,500

    Maintenance &

    with non‐routine maintenance and

    Improvement

    improvement projects would assist in ensuring

    Fund for the

    that funds are available to support capital

    Recreation

    improvement projects and unanticipated

    Center

    maintenance projects. A minimal charge would

    be added to each activity registration ranging

    from $1.00 for a single day/drop in to $5.00 for

    a multiple class enrollment. – page 28

    40

    Restructure

    Town of Palm Beach and recreation instructors

    $1,500

    existing

    share a percentage of the program fees

    instructor

    collected from registered participants.

    agreements

    Changing the percentages and standardizing

    them for all instructors could produce

    additional revenue for the Town. – page 28

    41

    Institute a non‐

    The Recreation Center hosts two (2)

    $1,500 ‐ $3,000

    resident fee for

    community based special events each year, the

    community based

    Spring Celebration and Halloween Happenings.

    special events.

    These programs have traditional been offered

    at no cost to the participant. The institution of

    a non‐resident participation fee of $5.00‐

    $10.00 would help to defray cover the cost of

    these programs. – page 28

    OTHER FUND CONSIDERATIONS – POLICY ACTION


    We are requesting guidance on the following policy matters that would impact the Other Funds of the Town.

    1. The Debt Service Reserve

      1. The debt service fund has excess reserves totaling $1,500,000. These funds have accrued since the issuance of the 2013 bond issue.

        1. We could utilize these reserves to lower the annual transfer to the debt service. We would recommend lowering it over a period of 8 years reducing the annual transfer by $187,500 per year.

        2. A second option would be to use the reserves for a one‐time use, for example, the partial payment for the Town’s share of the Recreation Center.

    2. OPEB Trust

      1. The new GASB standards were implemented this year. The actuarial report has been finalized and it resulted in a positive result. The Funded ration for the OPEB trust is 113.2%. The Town has the opportunity to reduce or eliminate the funding into the plan for a few years. The FY18 budget had a transfer of $960,000 to the OPEB trust. The FY19 budget transfer can be reduced or eliminated. The current overfunded amount is $3,865,440. It may be possible to reduce or eliminate the FY20 and FY21 funding depending on future experience.

    3. One‐Cent Sales Tax

      1. Town received a portion of the new one‐cent sales tax enacted in Palm Beach County. These proceeds have to be allocated to infrastructure improvements.

      2. The Town expects to receive approximately $5,000,000 over the 10‐year period.

      3. The Town Council approved allocating ½ of the distribution to the Underground Utility Project totaling $2,500,000 over 10 years.

      4. The Town Council has not yet allocated the balance of the proceeds to any specific project(s).

    4. Employer Retirement Contribution – No action needed. Information only.

      1. The September 30, 2017 actuarial report was recently released. The results were more favorable than had been forecasted in the Long Term Financial Plan. The contribution will be approximately $250,000 less than had been forecasted.

TABLE C‐ ADDITIONAL OPTIONS FOR FUTURE COST SAVINGS – NOT RECOMMENDED

TABLE C‐ ADDITIONAL OPTIONS FOR FUTURE COST SAVINGS – NOT RECOMMENDED


Below is a list of additional options for cost savings. Many of these options represent a reduction in level of service and are not on the list of recommendations. Some of these options may be considered in the future, but are currently not recommended.


No.

Department and Option

Description

Cost Estimates

Town Manager

1

Lobbying

Reduce or eliminate lobbying services – page 8

Up to

$140,500

2

Memberships ‐ Legislative

Reduce or eliminate memberships in government associations – page 8


$10,000

3

Travel ‐ Legislative

Reduce or eliminate travel – page 9


$2,500

4

Holiday decorations

Reduce or eliminate holiday decorations – page 11

Up to

$88,000

Human Resources

5

Recruitment

Payback for Recruitment – page 14

$6,127

6

Training

Eliminate townwide training, new hire orientation, technical training and web based training – page 16

$28,680

7

Eliminate transition to electronic Documents

Eliminate proposal to scan all historical HR documents – page 19

$38,000

8

Staff development

Eliminate department staff development – page 18

$13,000

9

Elimination of recruitment advertising expenses

Due to recent changes to e‐ recruitment, job applicants have doubled due to access to on‐line resources within the system. – page 15

$22,000

Finance

10

Eliminate First Floor Receptionist

Replace with automated telephone attendant and send customers to second floor for payments – page 8

$39,817 +

Benefits

11

Outsource Payroll

Outsource payroll with ADP or other vendor – page 8

No savings at this time ‐

cost of

$27,395

12

Eliminate Training Budget

Training needed to maintain certifications – page 9

$6,900

No.

Department and Option

Description

Cost Estimates

13

Lease of light vehicles ‐ Enterprise

Review fleet and determine if leasing is better option – page 16

TBD

Planning Zoning and Building

14

ARCOM

Reduce or eliminate paper ARCOM mini‐sets – page 16

Unknown

15

New Business

Establish an application fee for new businesses – page 18

$13,300

16

New Business

Establish an inspection fee for new businesses – page 18

$9,975

17

Additional fees

Establish a fee for searching for and printing required licenses, etc. – page 18

$3,000

Fire Rescue

18

Central Fire

Elimination of Central Fire Station – page 15

$1,133,070

19

Incentive for FTO

Eliminate the incentive for Field Training Officers – page 19


$12,012

Public Works

20

Pressure Washing

Reduce or eliminate cleaning of town sidewalks, concrete planting areas, benches, street markers, buildings, etc.

– page 15

$20,000

21

Eliminate special collection services

Eliminate collection for household discards – page 16


$28,845

22

Eliminate holiday collection of residential garbage.

This will eliminate paying overtime holiday pay to collection crews. This would occur at eight (8) times per year.

– page 40

$17,500/yr.

23

Reduce turf maintenance frequency from 52 visits per location to 39 annually.

Turf maintenance is currently a weekly service and costs $1,923 per service.

Because of this service interval we are able to monitor the condition of the turf and keep the appearance acceptable. – page 58

$25,000

24

Residential Street Sweeping

Reduce from once per week to once every two weeks. – New

$38,107

25

Street light painting

Eliminate street light painting program

– page 24

$31,000

No.

Department and Option

Description

Cost Estimates

26

Eliminate back door service

All residential garbage pickup would be curb side – page 39

$87,115 +

benefits (2 positions)

27

Residential Garbage Service

Reduce to only twice per week – page 39

$174,231 +

benefits (4 positions)

28

Outsource Residential Garbage

Contract out the residential garbage collection service – page 40

TBD

29

Commercial Garbage Service

Contract all of these services – page 42

$1,151,735

less cost of contracted

service.

30

Yard Waste

Collect yard waste only one day every other week – page 48

$333,000 +

benefits (8 positions)

31

Recycling

Eliminate the commercial recycling program – page 51

$43,577 plus benefits and

$15,000 in

ERF

32

Assess homeowners for the trimming and inoculation of palm trees.

Estimated number of palms – 1,885 @

$48 per palm = $90,480 – page 58

$90,480

33

No new plantings

No new plantings or landscape projects unless related to maintenance of existing parks and green spaces – page 59

TBD

34

Janitorial services

Reduce daily cleaning to three times per week – page 62

$17,730

35

Maintenance Painting

Eliminate maintenance painting of various exterior and interior facility spaces – page 62

$21,000

Other

36

Reduce capital program transfer.

This reduction would reduce the amount of recommended rehabilitation of Town facilities and infrastructure. – Public Works, page 67

$70,000 of CIP PayGo

Annual Budget.

No.

Department and Option

Description

Cost Estimates

37

Coastal Transfer

Reduce coastal transfer and apply for

$186,000

Federal Funding – or

Remove 3% cost escalators from

$222,309

remaining 5 years of 10‐year plan –

in FY19

page 77

38

Unassigned fund Balance

Lower the policy from 25% to 17% of

$5,183,774

General Fund Operating Expenses –

would

New

become

available as

excess

Personnel and Benefits

39

Retirement Administrator

Replace contracted retirement plan administrator with in‐house staff – Retirement, page 10

$157,500

Compensation and Health Benefits

40

Health Insurance

Claim Audit – page 15

$38,206

41

Life Insurance

Eliminate employer paid life insurance

– page 17

$86,800

Recreation Enterprise Fund

42

Remove the used oil collection recycling service

Used oil is considered a hazardous waste and if not handled properly it can contaminate soil and waterways resulting in environmental damage and costly clean‐up. Patrons will be required to handle the proper disposal of their used oil and filters. – page 10

$3,000

43

Eliminate the yearly Captain’s Party

This event provides the opportunity for staff to thank dock customers for their business. – page 10

$2,500

44

Refurbish 50% of cart paths each year instead of full restoration.

A portion of the cart paths at the Par 3 are comprised of crushed rock. This material must be replaced frequently due to erosion, weathering and decomposition. Refurbishing a portion of the cart paths every year could impact the aesthetics and safety of the course. – page 20

$5,500

No.

Department and Option

Description

Cost Estimates

45

Reduction in the number of hours for the contractual labor for the maintenance staff.

This budgetary reduction would result in the loss of 1,032 hours of ground maintenance work being completed at the golf course, which would result in a reduction in the quality of course conditions. – page 20

$13,000

46

Reduce the application of fertilizer on the golf course.

A reduction in fertilizingcan result in unhealthy turf and a decline in playing conditions. – page 20

$2,700

47

Replace/refresh bunker sand every other year.

Reducing the replacement and refreshing of bunker sand to every other year may affect the aesthetics and playability of the course. – page 18

$2,100 every other year

48

Eliminate all promotional advertising

The elimination of this funding may result in a reduction of revenue due to a decrease in public awareness – page 19

$5,000

49

Eliminate use of green sand for top dressing divots during season.

Although there is added expense, the aesthetic benefits of green sand are significant. Filling the divots with standard sand will be less attractive and may detract from the overall golfing experience. – page 18

$2,050

50

Eliminate ten (10) Town sponsored themed special events at the tennis centers.

Approximately 175 patrons participated in the Town sponsored themed tennis events in fiscal year 2017. Players pay a fee of $12.00 to help cover the cost of these events. Discontinuing these programs lowers our level of service, which could result in participant dissatisfaction. – page 25

$3,400

51

Closed Phipps Tennis Center on Fridays, Saturdays and Sundays at 12:30 pm, year round.

Based upon usage records, closure of Phipps Tennis Center at 12:30 pm on Fridays, Saturdays and Sundays would impact approximately 56 players a month. – page 24

$2,300

No.

Department and Option

Description

Cost Estimates

52

Tennis Academy

The creation of a tennis academy at Phipps Tennis Center would limit the availability of courts to the public, due to the need to dedicate usage to the proposed academy. A tennis academy is typically geared toward high performing youth involved in an intensive training environment. The creation of this program would require exclusive use of 2 courts, Monday – Friday. – page 23

$5,000

53

Eliminate free community special events (Halloween Happenings and Spring Celebration) at the Recreation Center.

The Town of Palm Beach hosts two (2) free events each year. These highly popular events have been a mainstay for over 25 years. Attendance remains consistent year after year with both residents and non‐residents participating in these family favorites. These community events help to strengthen our relationship to those we serve and showcases the Recreation center and its other programs. – page 29

$5,800

No.

Department and Option

Description

Cost Estimates

54

Increase Activity Leader to participant ratio for camps and after school programs to 1:15.

The American Camp Association (ACA) recommends 1 counselor for every 10 participants for day programs for children between 9 and 14 years old and 1 counselor for every 8 participants for day programs for children between 6 – 8 years old. The Town of Palm Beach currently meets these standards for the camp and after school programs. Raising the participant to counselor ration to 1:15 for all groups would greatly reduce the quality of the programming, could produce safety concerns due to less supervision and may result in the inability to frequent certain field trip sites due to ratio standards. – page 29

$19,000

55

Eliminate rental equipment for Camp Fun Day.

Camp Fun Day has traditionally been featured as an end of the summer celebration, with parents, grandparents, children and siblings coming to the Recreation Center to engage in a bar‐b‐que with games, bounce houses and water slides. The elimination of the bounce house and water slides would change the event to a cook out. – page 30

$1,500

56

Eliminate all professional development for staff.

Providing the opportunity for professional development allows staff to increase knowledge, develop skills, keep up to date on best practices and changing regulations, and encourages networking with other professionals. – page 30

$1,700

LONG TERM FINANCIAL PLAN ‐ UPDATE

Once the CROTO review is completed, staff will update the Long Term Financial Plan to include the recommended budget reductions and revenue enhancements. The Long Term Financial Plan will be presented at the April 10, 2017, Town Council meeting.