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TOWN OF PALM BEACH EXECUTIVE SUMMARY


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Budget for Fiscal Year 2016-2017


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JULY 12, 2016


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Town of Palm Beach, Florida


July 12, 2016


Honorable Mayor, Town Council


I am pleased to submit this budget summary in order to focus on the highlights of the proposed FY2017 budget. Details are found in the budget document that accompanies this summary.


The total proposed FY2017 town-wide budget including all funds is $159,561,950. The total proposed General Fund operating budget is $75,439,538.


The town-wide budget organized by fund type is as follows:


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General Fund


Revenues

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. Appearing below is a millage rate table to help facilitate a discussion of where we are and what is proposed. The proposed FY17 millage rate provides no tax increase to homesteaded property owners.

Millage Rate Consideration


FY16 Millage Rate

Maintain FY16 Rate for FY17

FY17

Proposed

Millage Rate

3.3779

3.3779

3.3530

Tax Revenue

$47,131,000

$50,956,681

$50,581,000

Millage % Increase/Decrease from FY16

n/a

0%

-0.74%

Homestead Value Increased by 0.7%

$1,000,000

$1,007,000

$1,007,000

Town Taxes

$3,209

$3,233

$3,209

Increase/(Decrease) over FY16

n/a

$24

$0


The State of Florida requires the Town to calculate a rolled-back millage rate. The rolled- back rate is defined as that millage rate which provides the same property tax revenue for each taxing authority as was levied during the previous year (exclusive of new construction, additions, rehabilitative improvements increasing assessed value by at least 100%, annexations, deletions). The proposed millage is 6.04% over the rolled back rate of 3.1619. The rolled-back rate is required to be announced at the public hearings in September.


There are a number of revenue types in the General Fund. These are categorized in the table below:


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Revenue


FY2016


FY2017

FY16 vs. FY17

Difference

%

Change

Ad Valorem Taxes

$47,131,000

$50,581,000

$3,450,000

7.32%

Non Ad Valorem Taxes

5,845,000

5,903,000

58,000

0.99%

Licenses & Permits

9,320,320

9,560,500

240,180

2.58%

Intergovernmental

1,135,437

1,178,500

43,063

3.79%

Charges for Services

3,867,388

3,816,550

-50,838

-1.31%

Fines and Forfeitures

1,284,000

1,255,000

-29,000

-2.26%

Investment Earnings

700,000

705,000

5,000

0.71%

Miscellaneous

266,600

288,758

22,158

8.31%

Interfund Transfers

785,000

685,000

-100,000

-12.74%

Transfers For Contingency and Compensated Absences


1,579,586


1,466,230


-113,356


-7.18%

Total Revenues

$71,914,331

$75,439,538

$3,525,207

4.90%


Significant highlights for General Fund revenues include:


Fund Balance


The General Fund Unassigned Fund Balance as of September 30, 2015 was $22,267,050. This amount was $6,669,094 above the policy required minimum. During FY16, a transfer of

$2,530,250 was made to begin to fund the underground utility project. The FY17 budget includes a transfer of $960,300 from fund balance to fund the contingency reserve and

$505,930 from the reserve for compensated absences to fund the compensated absence payouts. After these transfers, the remaining balance in the unassigned fund balances will be $3,178,544.


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I am proposing a transfer of $2,500,000 from the General Fund unassigned fund balance to the Retirement Fund as a supplemental Town contribution to reduce the unfunded liability. If approved, this amount will be included in the General Fund budget. This amount represents 9.12% of the total amount needed to obtain 80% funded status ($27,426,310) based on current fund circumstances. The Retirement Fund assets represent a 70.5% funded ratio. A funded ratio of 80% to 90% is considered above average by Standard and Poor’s. Hence, my goal is to proceed toward 80% funding over time.


Based on results thus far for FY16, we expect to add an estimated surplus of $4 million to the unassigned fund balance at FY16 year end.


Other Town Funds


The tables below and on the following page shows the Town’s other fund budgets. Additional information on these funds can be found in the budget document.



Description

Summary of Other Funds


FY2015 FY2016 FY2016

Actual Budget Projected


FY2017

Budget


FY17 Budget

to FY2017

FY16 Budget %

% Variance of Total

Debt Service Funds

Revenues

Interest Earnings

$100

$1,500

$1,100

$1,100

-26.67%

0.01%

Special Assessments

777,716

777,000

777,000

774,450

-0.33%

9.68%

Interfund Transfers

7,036,813

7,200,725

7,200,725

7,207,326

0.09%

90.13%

Total Revenues

$7,814,629

$7,979,225

$7,978,825

$7,982,876

0.05%

99.82%

Transfer from Fund Balance

172,478

14,000

2,400

14,014

0.10%

0.18%

Total Debt Service Funds

$7,987,107

$7,993,225

$7,981,225

$7,996,890

0.05%

100.00%

Expenditures

Debt Service

$7,982,457

$7,976,725

$7,976,725

$7,980,390

0.05%

99.79%

Other

4,650

16,500

4,500

16,500

0.00%

0.21%

Total Expenditures

7,987,107

7,993,225

7,981,225

7,996,890

0.05%

100.00%

Transfer to Fund Balance

0

0

0

0

0.00%

0.00%

Total Debt Service Funds

$7,987,107

$7,993,225

$7,981,225

$7,996,890

0.05%

100.00%

Capital Projects Funds

Revenues

Interest Earnings

$581,837

$183,803

$295,700

$200,093

8.86%

0.77%

Grants/Interlocal/Donations

694,413

4,540,000

3,655,728

1,055,000

-76.76%

4.08%

Special Assessment Revenue

229,988

233,710

238,000

247,342

5.83%

0.96%

Loan Proceeds/Contributions

0

0

0

200,000

-100.00%

0.77%

Interfund Transfers

15,940,037

9,367,993

9,367,993

10,455,677

11.61%

40.47%

Total Revenues

$17,446,275

$14,325,506

$13,557,421

$12,158,112

-15.13%

47.06%

Transfer from Fund Balance

22,277,708

21,985,838

30,860,632

13,674,637

-37.80%

52.94%

Total Capital Projects Funds

$39,723,983

$36,311,344

$44,418,053

$25,832,749

-28.86%

100.00%

Expenditures

Capital Outlay

$38,785,116

$35,128,271

$43,442,980

$24,499,694

-30.26%

94.84%

Interfund Transfers

734,613

731,163

731,163

731,413

0.03%

2.83%

Other

204,254

451,910

243,910

601,642

33.13%

2.33%

Total Expenditures

39,723,983

36,311,344

44,418,053

25,832,749

-28.86%

100.00%

Transfer to Fund Balance

0

0

0

0

0.00%

0.00%

Total Capital Projects Funds

$39,723,983

$36,311,344

$44,418,053

$25,832,749

-28.86%

100.00%


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Description

Summary of Other Funds


FY2015 FY2016 FY2016

Actual Budget Projected


FY2017

Budget


FY17 Budget

to FY2017

FY16 Budget %

% Variance of Total

Enterprise Funds

Revenues

Charges for Services

$5,809,804

$5,693,000

$5,807,600

$6,090,200

6.98%

90.29%

Interest Earnings

17,024

6,400

13,700

13,700

114.06%

0.20%

Grants/Interlocal/Donations

25,000

0

0

0

0.00%

0.00%

Interfund Transfers

0

0

0

0

0.00%

0.00%

Miscellaneous

4,168

0

0

0

0.00%

0.00%

Total Revenues

$5,855,996

$5,699,400

$5,821,300

$6,103,900

7.10%

90.49%

Transfer from Fund Balance

0

257,255

178,755

641,151

149.23%

9.51%

Total Enterprise Funds

$5,855,996

$5,956,655

$6,000,055

$6,745,051

13.24%

100.00%

Expenditures

Salaries and Wages

$1,177,158

$1,354,113

$1,286,244

$1,354,966

0.06%

20.09%

Employee Benefits

$523,960

$589,342

$590,277

$636,317

7.97%

9.43%

Contractual

1,363,774

1,400,150

1,759,989

1,814,889

29.62%

26.91%

Commodities

318,509

341,550

339,480

460,550

34.84%

6.83%

Capital Outlay

810,577

997,100

1,034,965

1,271,629

27.53%

18.85%

Debt Service

202,200

204,100

204,100

200,500

-1.76%

2.97%

Interfund Transfers

885,000

785,000

785,000

685,000

-12.74%

10.16%

Other

265,739

285,300

0

321,200

12.58%

4.76%

Total Expenditures

5,546,917

5,956,655

6,000,055

6,745,051

13.24%

100.00%

Transfer to Fund Balance

309,079

0

0

0

0.00%

0.00%

Total Enterprise Funds

$5,855,996

$5,956,655

$6,000,055

$6,745,051

13.24%

100.00%

Internal Service Funds

Revenues

Interest Earnings

$268,596

$161,366

$206,000

$206,000

27.66%

1.41%

Miscellaneous

1,124,273

30,000

230,000

30,000

0.00%

0.21%

Interfund Transfers

1,817,444

2,107,319

2,107,319

2,298,133

9.05%

15.71%

Charges for Services

6,848,122

6,749,295

6,828,595

6,644,937

-1.55%

45.42%

Total Revenues

$10,058,435

$9,047,980

$9,371,914

$9,179,070

1.45%

62.74%

Transfer from Fund Balance

0

4,564,607

949,914

5,450,343

0.00%

37.26%

Total Internal Sevice Funds

$10,058,435

$13,612,587

$10,321,828

$14,629,413

7.47%

100.00%

Expenditures

Salaries and Wages

$146,433

$175,011

$175,011

$176,386

0.79%

1.21%

Employee Benefits

4,432,126

5,243,386

5,243,386

5,351,911

2.07%

36.58%

Contractual

1,629,278

1,621,270

1,633,584

1,724,591

6.37%

11.79%

Commodities

3,708

5,062

5,062

5,548

9.60%

0.04%

Capital Outlay

1,447,942

1,356,858

1,919,412

1,870,977

37.89%

12.79%

Interfund Transfers

0

1,211,000

1,211,000

1,500,000

23.86%

10.25%

Other

141,512

4,000,000

134,373

4,000,000

0.00%

27.34%

Total Expenditures

7,800,999

13,612,587

10,321,828

14,629,413

7.47%

100.00%

Transfer to Fund Balance

2,257,436

0

0

0

0.00%

0.00%

Total Internal Sevice Funds

$10,058,435

$13,612,587

$10,321,828

$14,629,413

7.47%

100.00%

Trust & Agency Funds

Revenues

Interest Earnings

2,239,735

16,527,549

10,850,000

17,337,114

4.90%

59.95%

Gain/Loss on Investments

-11,747,821

0

0

0

0.00%

0.00%

Miscellaneous

103,396

95,000

77,500

82,500

-13.16%

0.29%

Contributions

8,229,372

10,023,424

8,694,992

10,159,695

1.36%

35.13%

Interfund Transfers

1,577,000

1,180,000

1,180,000

1,339,000

13.47%

4.63%

Total Revenues

$401,682

$27,825,973

$20,802,492

$28,918,309

3.93%

100.00%

Transfer from Fund Balance

26,236,584

0

0

0

0.00%

0.00%

Total Trust & Agency Funds

$26,638,266

$27,825,973

$20,802,492

$28,918,309

3.93%

100.00%

Expenditures

Contractual

$26,638,266

$21,184,774

$18,994,898

$22,072,348

4.19%

76.33%

Transfer to Fund Balance

0

6,641,199

1,807,594

6,845,961

3.08%

23.67%

Total Trust & Agency Funds

$26,638,266

$27,825,973

$20,802,492

$28,918,309

3.93%

100.00%


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Highlights from the other funds include:



Final Thoughts


This concludes the summary. Please see the attached Letter of Transmittal and FY2017 proposed budget document for detailed information. Staff will answer any questions you may have.


Respectfully Submitted,


TBradford

Thomas G. Bradford Town Manager

cc: Department Directors

Jay Boodheshwar, Deputy Town Manager


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MEMORANDUM


To: Mayor and Town Council


Via: Thomas G. Bradford, Town Manager From: Jane Struder, Director of Finance Date: July 5, 2016

Subject: Taxable Value Update and FY17 Budget Impact



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The General Fund budget and the proposed millage rate were prepared and calculated using the taxable value estimate we received from the Property Appraiser on June 1st. In late June we received the “July 1st” update and the taxable value increased to $15,929,537,770, representing an increase of 8.65% over FY16. This new amount would provide an additional

$160,153 in ad valorem tax revenue if the millage rate remained at 3.3530 as proposed, and would still provide no tax increase for homesteaded property owners. I would recommend keeping the proposed millage at 3.3530 and add the $160,153 to the transfer to the Capital Improvement Program to be used for costs associated with the underground utility project. If the Town Council would like to reduce the millage rate and keep the same amount of ad valorem revenue that is currently in the budget, the millage rate would be 3.3424 and would provide the homesteaded property owner a savings of $10 per $1 million of taxable value.


The State of Florida requires the Town to calculate a rolled‐back millage rate. The rolled‐ back rate is defined as that millage rate which provides the same property tax revenue for each taxing authority as was levied during the previous year (exclusive of New Construction, Additions, Rehabilitative Improvements Increasing Assessed Value By At Least 100%,Annexations, Deletions). The proposed millage is 7.3% over the rolled back rate of 3.1249. The rolled‐back rate is required to be announced at the public hearings in September.


The table on the following page summarizes the details of the updated taxable value and the effect on the proposed budget.


Taxable Value, Millage Rate and Ad Valorem Revenue Update


June 1st

% Change from FY16

July 1st

% Change from FY16

Taxable Value

15,879,277,514

8.3%

15,929,537,770

8.65%

Millage Data using the July 1st Taxable Value

FY16 Millage Rate

Maintain FY16 Rate for FY17

FY17 Original Proposed Rate

FY17

Ad valorem Budget Rate

Millage Rate

3.3776

3.3779

3.3530

3.3424

Millage % Increase/Decrease from FY16

n/a

0%

‐0.74%

‐1.05%

Ad Valorem Tax Revenue

$47,131,000

$51,117,966

$50,741,153

$50,581,000

Additional Tax Revenue over FY16

n/a

$3,986,966

$3,610,153

$3,450,000

Additional Tax Revenue over FY17 Proposed Budget

n/a

$536,966

$160,153

$0

Homestead Value Increase 0.7%

$1,000,000

$1,007,000

$1,007,000

$1,007,000

Town Taxes

$3,209

$3,233

$3,209

$3,199

Increase/(Decrease) over FY16

n/a

$24

$0

($10)

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TOWN OF PALM BEACH

TENTATIVE - SUBJECT TO REVISION

TENTATIVE - SUBJECT TO REVISION

Town Manager’s Office


SPECIAL TOWN COUNCIL MEETING AGENDA

TOWN COUNCIL CHAMBERS TUESDAY, JULY 12, 2016

Commencing immediately following the conclusion of the regularly scheduled Town Council meeting which beings at 9:30 AM


  1. CALL TO ORDER AND ROLL CALL

    Mayor Gail L. Coniglio Michael J. Pucillo, President

    Richard M. Kleid, President Pro Tem Bobbie Lindsay

    Danielle Moore Margaret A. Zeidman


  2. PLEDGE OF ALLEGIANCE


  3. APPROVAL OF AGENDA


  4. COMMUNICATIONS FROM CITIZENS – 3 MINUTE LIMIT


  5. TOWN MANAGER’S OVERVIEW OF THE PROPOSED FY17 BUDGET [Thomas G. Bradford, Town Manager]

    1. General Fund

      1. Pension: Discretionary 4% Town Contribution

      2. Building Permit Fees


    2. Debt Service Fund


    3. Capital Improvement Funds

      1. Pay As You Go Capital Improvement Program

      2. Accelerated Capital Improvement Program

      3. Coastal Protection Program

      4. Worth Avenue Maintenance


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


    4. Recreation Enterprise Fund

      1. Fee Discussion


    5. Internal Service Funds

      1. Health Insurance

      2. Risk Management

      3. Equipment Replacement Fund


    6. Trust and Agency Funds

      1. Pension Funds

      2. OPEB Trust


    7. Review of General Fund and Recreation Fund Program Revenues and Expenditures for FY2017.


  6. RESOLUTION NO. 98-2016 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County Florida, Approving a Proposed Operating Millage Rate of 3.3779 for the Tentative Fiscal Year 2017 Budget; Approving the Computed Rolled Back Millage Rate of 3.1249 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 2017 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.

    [Thomas G. Bradford, Town Manager]


  7. RESOLUTION NO. 99-2016 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Worth Avenue Improvement Project; Establishing the Estimated Assessed Cost Against the Properties that will be Benefitted Thereby; Directing the Town Manager to Prepare an Updated Assessment Roll; Establishing a Public Hearing to Consider Approval of the Assessment Rolls and Reimposition of the Maintenance Assessments and their Collection Pursuant to the Uniform Assessment Collection Act; Directing the Provision of Notice; and Providing for an Effective Date.

    [Jane Struder, Director of Finance]


  8. RESOLUTION NO. 101-2016 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Town Hall Square Improvement Project; Describing the Property to be Included Within the Proposed Town Hall Square Assessment Area and the Local Improvements and Related Services to be Provided Therein; Determining the Estimated Capital Cost, Project


    7/12/16, STCM budget 2

    Cost and Maintenance Cost of the Town Hall Square Improvement Project; Establishing the Method of Assessing the Assessed Cost Against the Properties that will be Benefitted Thereby; Establishing Other Terms and Conditions of the Assessments; Directing the Town Manager to Prepare a Preliminary Assessment Roll; Establishing a Public Hearing to Consider Imposition of the Proposed Assessments and the Method of Their Collection; Directing the Provision of Notice; and Providing for an Effective Date.

    [Jane Struder, Director of Finance]


  9. RESOLUTION NO. 102-2016 A Resolution of the Town Council of the Town of Palm Beach, Palm Beach County, Florida, Relating to the Collection of Commercial Solid Waste; Establishing the Estimated Assessed Cost Against the Properties that will be Benefitted Thereby; Directing the Town Manager to Prepare an Updated Assessment Roll; Establishing a Public Hearing to Consider Approval of the Assessment Rolls and Reimposition of the Service Assessments and their Collection Pursuant to the Uniform Assessment Collection Act; Directing the Provision of Notice; and Providing an Effective Date.

    [H. Paul Brazil, Director of Public Works]


  10. ANY OTHER MATTERS


  11. ADJOURNMENT


PLEASE TAKE NOTE:

The progress of this meeting may be monitored by visiting the Town’s website (www.townofpalmbeach.com) and clicking on “Meeting Audio” in the left column. If you have questions 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.


7/12/16, STCM budget 3


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TOWN OF PALM BEACH LETTER OF TRANSMITTAL

Budget for Fiscal Year 2016-2017


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TOWN OF PALM BEACH



July 12, 2016


Honorable Mayor, Town Council and Citizens


Submitted herewith is the Annual Budget and Financial Plan for the Town of Palm Beach for the fiscal year commencing October 1, 2016 (FY2017). Expenditures from all operating, capital projects, and debt service funds, are expected to total $159,561,950. This proposed budget is of note in that the proposed property tax rate providing revenue to the General Fund is recommended to be reduced to (3.3530), a 0.74% millage rate decrease. The June 1st preliminary estimate for taxable value for FY17 from the Property Appraiser is

$15,879,277,514, 8.3% over FY16. In preparing this proposed budget, staff has tried to adequately address the needs of the Town, while at the same time minimizing the impact to Town taxpayers.


This budget was prepared keeping five important concepts foremost: 1) that the budget is a policy document and must facilitate understanding and policy analysis by elected officials and the general public; 2) the level of service that the Town provides its residents and visitors should not be compromised; 3) the plan for routine replacement of major capital equipment must be maintained; 4) the long range plan for funding capital improvements must be continued; and 5) unassigned fund balances should be maintained at sufficient levels.


The Annual Budget and Financial Plan for the Town of Palm Beach covers the funds which are reviewed herein in the following order:

  1. General Fund

  2. Debt Service Fund

  3. Capital Improvement Fund

  4. Coastal Management Fund

  5. Accelerated Capital Improvement Program Fund

  6. Recreation Enterprise Fund

  7. Internal Service Funds

  8. Trust Funds


Budget Format


This letter of transmittal is designed to provide for understanding and policy analysis of the FY17 budget for the elected officials and public. The Annual Budget Document provides additional detailed information for all revenue and expenditure categories and has been prepared in a program format. Each program contains historical and proposed expenditure

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information and a narrative description of what services are provided. In this way, elected officials are able to understand and concentrate on the very important policy questions necessary to consider when reviewing the annual budget such as: Is this the level of service that citizens expect? Are taxpayers willing to pay the cost of providing this level of public service? How are the Town’s long-term capital and financial needs of the Town being addressed?


General Fund


The General Fund is the primary operating fund of the Town. It is the only fund which directly utilizes ad valorem (property) taxes as a revenue source. The proposed millage rate is 3.3530 which is less than the FY16 rate of 3.3779 representing a 0.74% millage rate decrease.


The State of Florida requires the Town to calculate a rolled-back millage rate. The rolled- back rate is defined as that millage rate which provides the same property tax revenue for each taxing authority as was levied during the previous year (exclusive of New Construction, Additions, Rehabilitative Improvements Increasing Assessed Value By At Least 100%, Annexations, Deletions). The proposed millage is 6.04% over the rolled back rate of 3.1619. The rolled-back rate is required to be announced at the public hearings in September.


General Fund expenditures are proposed to increase by 4.90% over FY16. This increase includes a transfer of $2,200,000 transfer to the Capital Improvement Fund, an increase of

$1,170,000. The General Fund departmental operating budget, before transfers, increased by 3.86% over FY16.


Highlights of the FY17 budget include:


  1. Based upon the Property Appraiser's Preliminary Certification issued June 1, 2016, existing property taxable values in the Town have risen 8.3% over the prior year.

  2. No additional positions have been included in the budget.

  3. Merit increases are included in the budget as well as a 2% increase in the pay ranges.

  4. The increase in defined benefit (DB) pension benefits is due to the lower returns in FY15 for the pension fund and additional funding for the changes in the mortality tables. The DB amount reflects the changes to the non-union public safety pension benefits which did not increase the overall pension cost for FY17, but includes the transfer of the employer’s estimated non-union public safety DC contributions to the retirement fund.

  5. The Defined Contribution total includes the Town discretionary 4% increase for a total of an 8% Town match to General Employee and Lifeguard’s contributions.

  6. Funding for Health Insurance has remained flat for FY17 and is in keeping with the findings of our consultant Willis and excellent claims experience.

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  7. Additional Funding of $1,170,000 has been included for the transfer to the Capital Improvement Fund. A portion ($500,000) of the increase is to begin to build up reserves for future capital projects once the bond proceeds have been spent. The balance, $670,000, is to fund Underground Utility items discussed later in this document.


    Revenues

    In the General Fund, total revenues are expected to increase by $3,525,207 (4.9%) from the adopted FY16 budget. The changes by revenue type are shown on the table below:



    Revenue


    FY2016


    FY2017

    FY16 vs.

    FY17

    Difference

    %

    Change

    Ad Valorem Taxes

    $47,131,000

    $50,581,000

    $3,450,000

    7.32%

    Non Ad Valorem Taxes

    5,845,000

    5,903,000

    58,000

    0.99%

    Licenses & Permits

    9,320,320

    9,560,500

    240,180

    2.58%

    Intergovernmental

    1,135,437

    1,178,500

    43,063

    3.79%

    Charges for Services

    3,867,388

    3,816,550

    -50,838

    -1.31%

    Fines and Forfeitures

    1,284,000

    1,255,000

    -29,000

    -2.26%

    Investment Earnings

    700,000

    705,000

    5,000

    0.71%

    Miscellaneous

    266,600

    288,758

    22,158

    8.31%

    Interfund Transfers

    785,000

    685,000

    -100,000

    -12.74%

    Transfers For Contingency and Compensated Absences


    1,579,586


    1,466,230


    -113,356


    -7.18%

    Total Revenues

    $71,914,331

    $75,439,538

    $3,525,207

    4.90%


    Ad Valorem Revenue

    The proposed FY16 budget contains an increase in property tax revenues of 7.32% sufficient to cover increases in operating expenses and an additional $1,170,000 transfer to the Capital Improvement Fund. The proposed FY2017 millage rate provides no tax increase for homesteaded property owners. The General Fund budget and proposed millage rate were prepared using the taxable value amount received from the Property Appraiser on June 1st. An update will be provided in a separate memorandum once the July 1st estimate is released.


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    Below is a millage rate table to help facilitate a discussion of where we are and what is proposed for the FY17 budget.

    Millage Rate Options


    FY16 Millage Rate

    Maintain FY16 Rate for FY17

    FY17

    Proposed

    Millage Rate

    3.3779

    3.3779

    3.3530

    Tax Revenue

    $47,131,000

    $50,956,681

    $50,581,000

    Millage % Increase/Decrease from FY16

    n/a

    0%

    ‐0.74%

    Homestead Value Increased by 0.7%

    $1,000,000

    $1,007,000

    $1,007,000

    Town Taxes

    $3,209

    $3,233

    $3,209

    Increase/(Decrease) over FY16

    n/a

    $24

    $0


    Non Ad Valorem Revenue

    Total non ad valorem revenues (excluding transfers of fund balance) are anticipated to increase by $75,207 from the FY16 revenue budget. The differences by revenue type are described in detail, as follows:


$240,457 for the funding for the coastal program due to the planned 3% increase to the FY16 base to adjust for inflationary impacts.


Fund Balance

As of September 30, 2015, the Town’s unassigned General Fund balance was $22,267,050. Town policy requires that the General Fund maintain an unassigned fund balance of 25% of budgeted operating expenditures (General Fund budget less coastal and capital transfers). This requires a minimum unassigned fund balance of $15,629,586 for the FY16 budget. Therefore, the Town’s unassigned General Fund balance was $6,669,094 above the policy required minimum for FY16. During FY16, a transfer of $2,530,250 was made to begin to fund the underground utility project. This amount represented the Town’s estimated prepayment of the assessments on Town owned properties. The remaining unassigned General Fund balance is $4,138,844. The FY17 proposed budget includes a transfer of

$1,466,230 from fund balance reserves to fund the following items: contingency reserve

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($960,300) and compensated absence payouts ($505,930). The contingency transfer will come from the Town’s unassigned General Fund balance and the compensated absence payouts will come from the compensated absence reserve.


I am proposing a transfer of $2,500,000 to the Retirement Fund as a supplemental Town contribution to reduce the unfunded liability. This amount represents 9.12% of the total amount needed to obtain 80% funded status ($27,426,310). The Retirement Fund assets represent a 70.5% funded ratio. A funded ratio of 80% to 90% is considered above average by Standard and Poor’s.


Based on results thus far for FY16, we expect to add an estimated surplus of $4 million to the unassigned fund balance at FY16 year end.


Personnel Complement

The total proposed personnel complement (for all funds Townwide) for FY17 is 362.87 full- time equivalent personnel (FTEP), which is a decrease of 2.22 FTEP from the adopted FY16 budget. The decrease represents the decline in part time positions in Recreation. A chart of the FTEP by department is shown on the table below:


Department/Fund

FY13

FY14

FY15

FY16

FY17

Town Manager

5.10

5.10

5.10

5.00

5.00

Information Systems

6.00

6.00

8.00

8.00

8.00

Human Resources

4.38

4.38

4.63

5.13

5.03

Finance

17.64

18.14

18.64

18.56

18.56

Planning, Building & Zoning

26.25

26.25

27.25

28.25

28.25

Fire-Rescue

79.90

75.90

75.90

75.90

75.90

Police

104.35

103.35

103.35

103.35

103.35

Public Works

88.02

88.04

87.04

88.54

88.07

Recreation Enterprise Fund

25.80

26.71

26.04

27.55

25.30

Coastal Management Fund

0.00

0.00

1.00

1.00

1.50

Risk Fund

1.00

1.00

1.00

1.16

1.16

Health Fund

0.79

0.79

0.79

0.97

1.01

OPEB Trust

0.73

0.73

0.73

0.90

0.95

Retirement Fund

0.71

0.71

0.71

0.79

0.79

Total Authorized Positions

360.67

357.10

360.18

365.09

362.87


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.

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The Town’s other funds include: Debt Service, Capital Improvement Funds, Recreation Enterprise Fund, Internal Service Funds (Health, Risk, Equipment Replacement), and Trust Funds (Pension and OPEB Trust).


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. In 2013, the Town issued $55,590,000 for the second phase of the ACIP, “bondable” coastal projects, and the Town’s portion of the Par 3 clubhouse project.


The Town’s outstanding debt as of September 30, 2016 is shown below:



Year Issued

Outstanding Principal Balance

@ September 30,

2016


Purpose

2010A

$50,840,000

First Phase of the ACIP and Refund Outstanding Debt.

2010B

$11,550,000

Worth Avenue Commercial District Project

2013

$53,755,000

Second Phase of ACIP, Bondable Coastal, and Par 3

Clubhouse

Total

$116,145,000


As of September 30, 2016, the Town’s net bonded debt will amount to 14.6% of the legal limit of $796,476,888 (5% of preliminary FY17 taxable value of $15,929,537,770).


The 2010A and 2013 Series Revenue Bonds debt service is funded from non-ad valorem revenues. A portion of each ($200,501) is funded through the Recreation Enterprise Fund for the Town’s portion of the Par 3 golf course and clubhouse renovation, and a portion is funded through the Coastal Management Fund ($731,413). The non-ad valorem revenue transfer from the General Fund for FY17 is $6,275,412.


The 2010B Series Revenue Bonds debt service appropriation of $773,050 is funded through non ad valorem assessments on the property owners within the Worth Avenue Assessment District.


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

For FY17 the following items totaling $12,145,281 are included in the capital improvement budgets for ACIP II the Capital Improvement Fund (307):


The transfer to the Capital Improvement Fund has been increased from $1,030,000 to

$2,200,000. A portion of the increase ($500,000) is to begin to fund projects that will need to be completed once the ACIP II bond proceeds have been expended. The remainder of the increase ($670,000) is for underground utility project costs. This amount includes:

  1. $200,000 to bury overhead lines through the City of Lake Worth section of South Ocean Boulevard; and

  2. $200,000 to hire either a contractual or full time project coordinator for the town- wide underground utility project reporting directly to the Town Manager and UUTF, and Town Council; and

  3. $270,000 to augment the underground utility program to reduce assessments. Bonds funds in the ACIP II fund will be used to fund the remaining capital projects.

Coastal Management

The Coastal Management Fund (309) is used in part to fund the construction costs of the coastal projects. The details of the FY17 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. We are proposing to increase the transfer from the General Fund by the original planned 3% increase to adjust for inflation.

Recreation Enterprise Fund (403)


The Recreation Enterprise Fund (REF) comprises all municipal recreational activities and facilities in the Town, including the Par 3 Golf Course, the Seaview Park and Phipps Ocean Park Tennis Centers, the Recreation Center, and the Town Docks.


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Revenue


Staff is projecting an increase in recreation revenue of 6.9% from the FY2016 budget. At the Town Council meeting on July 12, 2016, staff will propose increasing dockage rates and select fees at the Par 3 Golf Course. Staff is not recommending increasing Recreation Center rental or tennis fees. The growth of participation at the Recreation Center and the two tennis centers continues to be the primary strategy for increasing revenue within these two divisions.


Tennis revenue projections are slightly higher for 2017. The focus will remain on increasing participation and no fee increases are proposed. Tennis has experienced a consistent increase in participation over the past several years and this trend is expected to continue in 2017. The cost recovery goal of 60% is expected to be achieved through continued cost control measures.


Recreation Center revenue projections have been adjusted to more accurately reflect anticipated income. The revenue focus for the Recreation Center will remain on the implementation of new programs, revitalization of existing programs and the development of marketing strategies to raise awareness of program offerings. Modest and strategic fee increases to individual activities will be in effect for the upcoming fiscal year. Staff is not recommending changes to building rental rates.


Town Dock revenues for FY17 are expected to increase. Staff is proposing fee changes for annual, seasonal and transient customers. Recommendations include dockage rate increases of 3% for annual and seasonal leases for slip sizes up to 130 feet with 100 amp single phase power and 5% for slip sizes up to 262 feet with 3 phase power. Increases are also being recommended for transient rates, with increases ranging from 3% to 8%, depending upon the size of the slip and the power supply provided. The overall increases should not affect our place in the market, and should not hinder our pursuit of achieving our cost recovery goals.


Golf Course revenue projections are expected to increase during 2017. Increases are being proposed for the purchase of the three sizes of buckets for range balls and the 10 large bucket program. However, the size of each bucket will increase slightly, to offset this additional expense. An increase is being recommended to the Maintenance & Improvement Fee for the summer season. This change will make the fee comparable with the winter and shoulder season. In an effort to ensure residents are not impacted by this proposed change, it is recommended that summer season resident green fees be reduced by the amount equal to the increase of the M & I Improvement Fee. The demand for tee times indicates these


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increases to fees will be tolerated and not affect play and the Par 3’s place in the market. Also, it is expected that the food and beverage operations in the clubhouse will continue to show growth during the 2017 fiscal year.


Expenditures


The FY17 REF budget represents an overall increase of 4.5% from the FY16 budget. The Administration Section will exhibit an increase due to personnel adjustments. The Director’s position will be filled for a complete fiscal year, causing an increase in Salaries and Wages and Employee Benefits. The Tennis Programs and Facilities budget will see a minor increase from FY16, while the Recreation Center budget is slightly lower than FY16, due to staff redistribution. The Par 3 Golf Course and the Marina are both showing increases in operating expenses. The Par 3 increase can be attributed to the rise in personnel and building maintenance costs. The rise in the Docks FY17 budget is due to the anticipated increase in security costs. The transfer of fund profits to the General Fund is budgeted at $685,000, a decrease of $100,000 from FY16. The decrease is designated for the dock replacement reserve in order to increase the funding for the future replacement of the Town docks.


Details regarding each of the programs of the REF can be found in the Recreation Enterprise Fund section of this document.


Internal Service Funds (501, 502, 320)


The transfer to the Risk Fund (501) has decreased by $96,558 (-4.99%) from FY16 to FY17. The decrease is related to reductions in the fixed costs for liability and property insurance.


The employer contribution for FY17 to the Health Insurance Fund (502) has remained the same as in FY16 due to savings realized from the wellness program and favorable claims experience.


The Equipment Replacement Fund (320) contains the accumulated depreciation of all fixed assets over the established thresholds of $2,500 for capital equipment and $1,500 for computer equipment. The annual depreciation transfer for FY17 is $2,298,133. This amount represents an increase of $190,814. In FY17, the total expenditures for equipment purchases will be $1,868,219. 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 FY17 actuarially determined contribution to the defined benefit plan originally totaled

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$7,708,771. Due to the non-union public safety pension changes the amount now totals

$8,087,085, the difference is offset by using the non-union DC contributions, which exceed funding required, but will remain in the fund to improve the unfunded status.


As mentioned earlier in this letter, I am proposing a transfer of $2,500,000 from the General Fund unassigned fund balance to the Retirement Fund as a supplemental Town contribution to reduce the unfunded liability. If approved, this amount will be included in the General Fund budget. This amount represents 9.12% of the total amount needed to obtain 80% funded status ($27,426,310). The Retirement Fund assets represent a 70.5% funded ratio. A funded ratio of 80% to 90% is considered above average by Standard and Poor’s.


The Town contribution comparison for FY16 vs. FY17 is shown in the table below:


Town Defined Benefit Contribution


FY16

FY17

$ Change

% Change

General Employees

$2,049,839

$2,414,960

$365,121

17.8%

Lifeguards

160,770

163,443

2,673

1.7%

Police

2,306,795

2,832,558

525,763

22.8%

Firefighters

2,359,519

2,676,124

316,605

13.4%

Subtotal

$6,876,924

$8,087,085

1,210,161

17.6%

Less: Prepaid Contribution

(488,633)

0

488,633

100.0%

Amount included in Budget

$6,388,291

$8,087,085

$1,698,794

26.6%


The Town contributes a required match of up to 4% to the Defined Contribution (DC) plan. Contributions to the DC plan began with the implementation of the hybrid plan on May 1, 2012. In addition, the Town Manager may recommend and the Town Council may approve an additional discretionary contribution of up to 4% per year, to be decided each year depending upon economic and budgetary conditions. For FY17, the Town Manager is recommending a 4% discretionary DC contribution at a cost of $468,673 for General Employees and Lifeguards. Non-union public safety officers will not be participating in the defined contribution program beginning in FY17. Union firefighters are not eligible for the discretionary match. Total employer contributions to the DC plan are shown in the chart on the following page:


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Employer Defined Contribution Funding


FY12

Actual

FY13

Actual

FY14

Actual

FY15

Actual

FY16

Budget

FY17

Budget

General

$123,785

$334,252

$699,122

$756,792

$861,483

$923,990

Lifeguards

2014

5,458

10,943

12,410

14,789

13,357

Police

43,163

104,787

265,191

294,148

321,688

0

Fire-Rescue

47,748

128,627

174,650

154,893

203,975

92,610

Total

$216,710

$573,124

$1,149,906

$1,218,243

$1,401,935

$1,029,957


Health Insurance (OPEB) Trust (610)


The actuarially determined transfer to the OPEB trust from the General Fund in the FY17 budget is $1,339,000. This amount is $159,000 (13.47%) more than FY16. The increase is due to the reduction in the investment assumption from 8% to 7.5%. The trust was established to account for and fund the liability for the Town’s share of retiree health benefits. The contributions are funded like pension benefits, taking into account the accrued cost for current employee benefits as well as the costs of retired employee benefits. 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.


Looking Ahead


It is our expectation that property value growth will slow to a more stable rate for next year. Since 2000 the average rate of growth has been 6.9%. We expect the growth rate for FY17 to be closer to this average rate.


It is staff’s intent during the upcoming year to review and implement the following initiatives:


This budget proposal recommends a plan to primarily maintain public services at current levels at the lowest possible cost. This budget proposal also addresses the long-term needs of Palm Beach. It is not submitted with the notion that it is the only plan or the best plan, and I look forward to reviewing these proposals with the elected officials and citizens.


I wish to acknowledge the efforts of Jane Struder, Director of Finance, Cheryl Somers, Assistant Director of Finance, Amy Wood, Accounting Supervisor, and Jay Boodheshwar, Deputy Town Manager for their efforts in compiling this document which was generated with the valuable input of each Department Director and their respective staffs.


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Respectfully Submitted,


Thomas G. Bradford Town Manager

cc: Department Directors

Jay Boodheshwar, Deputy Town Manager


18

FY 17 Budget Summary by Fund Type, Revenues and Expenditures


Debt Capital Internal Trust &

General Service Projects Enterprise Service Agency Totals


Revenues

Ad Valorem Taxes

$50,581,000

$0

$0

$0

$0

$0

$50,581,000

Non Ad Valorem Taxes

5,903,000

0

0

0

0

0

5,903,000

Licenses and Permits

9,560,500

0

0

0

0

0

9,560,500

Intergovernmental

1,178,500

0

1,055,000

0

0

0

2,233,500

Charges for Services

3,816,550

0

0

6,090,200

6,644,937

0

16,551,687

Fines and Forfeitures

1,255,000

0

0

0

0

0

1,255,000

Contributions

0

0

200,000

0

0

10,159,695

10,359,695

Interest Earnings

705,000

1,100

200,093

13,700

206,000

17,337,114

18,463,007

Miscellaneous

288,758

0

0

0

30,000

82,500

401,258

Special Assessments

0

774,450

247,342

0

0

0

1,021,792

Interfund Transfers

685,000

7,207,326

10,455,677

0

2,298,133

1,339,000

21,985,136

Subtotal

73,973,308

7,982,876

12,158,112

6,103,900

9,179,070

28,918,309

138,315,575

Appropriations from

Fund Balance


1,466,230


14,014


13,674,637


641,151


5,450,343


0


21,246,375

Total Revenues

$75,439,538

$7,996,890

$25,832,749

$6,745,051

$14,629,413

$28,918,309

$159,561,950


Expenditures

Salaries and Wages

$24,737,579

$0

$0

$1,354,966

$176,386

$114,073

$26,383,004

Employee Benefits

16,909,548

0

0

636,317

5,351,911

2,075,629

24,973,405

Contractual

9,432,209

0

0

1,814,889

1,724,591

19,882,346

32,854,035

Commodities

1,810,344

0

0

460,550

5,548

300

2,276,742

Capital Outlay

399,807

0

24,499,694

1,271,629

1,870,977

0

28,042,107

Depreciation

2,295,375

0

0

0

0

0

2,295,375

Debt Service

0

7,980,390

0

200,500

0

0

8,180,890

Interfund Transfers

18,894,376

0

731,413

685,000

1,500,000

0

21,810,789

Other

960,300

16,500

601,642

321,200

4,000,000

0

5,899,642

Subtotal

75,439,538

7,996,890

25,832,749

6,745,051

14,629,413

22,072,348

152,715,989

Transfer to Fund

Balance/Retained Earnings


0


0


0


0


0


6,845,961


6,845,961

Total Expenditures

$75,439,538

$7,996,890

$25,832,749

$6,745,051

$14,629,413

$28,918,309

$159,561,950


Financial Ratios


General

Debt Service

Capital Projects


Enterprise

Internal Service

Trust & Agency


Total

Ad Valorem Taxes as

percentage of total

fund budget

67.05%

0.00%

0.00%

0.00%

0.00%

0.00%

31.70%

Ad Valorem Taxes per

capita (8,041

population)

$6,290

$0

$0

$0

$0

$0

$6,290

Total expenditures per

capita (8,041

population)

$9,382

$995

$3,213

$839

$1,819

$3,596

$19,844

Personnel as a

percentage of the

total budget

32.79%

0.00%

0.00%

20.09%

1.21%

0.39%

16.53%


Capital expenditures

as percentage of total

fund budget

0.53%

0.00%

94.84%

18.85%

12.79%

0.00%

17.57%

Capital expenditures

per capita (8,041

population)

$50

$0

$3,047

$158

$233

$0

$3,487


19


Town of Palm Beach Reserves

The Town Council has adopted nineteen financial policies, sixteen of which address reserves. The reserve policies serve to safeguard the Town’s financial resources and ensure fiscal stability. The size of a municipality’s fund balance can affect its ability to withstand financial emergencies. Reserves can also be used to accumulate funds for capital purchases or capital projects without having to borrow.


Unassigned Fund Balance - General Fund


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Pursuant to adopted policy, the unassigned fund balance for the General Fund is to be maintained at a minimum level of 25% of current year General Fund budgeted expenditures. This minimum level is to be maintained to protect the Town against

economic downturns, temporary revenue shortfalls, unpredicted one-time expenditures, and for tax rate stabilization purposes. During FY16, the Town Council approved a budget amendment transferring

$2,530,250 from the unassigned fund balance to begin to fund the underground utility project. The amount represented the estimated prepayment of the assessments on Town owned properties.

Twenty-five percent of the FY16 General Fund operating budget (General Fund budget less coastal transfer) is $15,629,586. The unassigned fund

balance after the FY16 budget amendment exceeds the minimum requirement by $4,138,844.


The General Fund Undesignated Fund Balance has consistently exceeded the required minimum level of 25%. The chart above details the General Fund Undesignated Fund Balance and the percent of budgeted expenditures the balance represents. For the FY17 budget, a transfer of

$960,300 from fund balance will be used to fund the contingency reserve as directed by policy.


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Reserves - Risk Fund


The total reserve balance for the Risk Fund was

$8,071,236 as of September 30, 2015. Out of this reserve balance, the Town funds the Reserve for Catastrophic Exposures/Emergencies - Risk Fund in the amount of $2,500,000 and the Contingency Reserve for $500,000. The trend for the Risk Fund Reserve is shown in the table. In 2014 the Town Council approved a transfer of $2,000,000 from the reserves of the Risk Fund to the Coastal Protection Fund.


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Reserve for Catastrophic Exposures/Emergencies - Risk Fund


The Reserve for Catastrophic Exposures/Emergencies for the Risk Fund is funded at a minimum of

$2,500,000. This reserve was established to set aside emergency funds to protect the Town against the potential financial impacts large judgments in excess of insurance coverage and the financial impacts of response to and recovery from a man-made or natural emergency situation. In addition, the reserve can be used in response to increases in premium rates and/or loss fund increases. This reserve is funded with a budget appropriation from the Net Asset reserves of the Risk Fund.


Recreation Enterprise Fund Reserves


The Recreation Enterprise Fund reserve is to be maintained at a minimum level of 25% of budgeted revenues totaling $1,424,850 for FY16. The purpose of the reserve is to provide an adequate level of net assets for unanticipated financial impacts as well as to provide for one-time expenditures to improve the facilities.


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The Town’s enterprise fund includes the operations of the Town Docks, the Par 3 Golf Course, tennis activities and youth and adult recreation programs.


At the end of FY15, the net asset balance for the Recreation Enterprise Fund (REF) was $4,303,456.

Separate reserves have been set aside from this amount for the dock replacement, Par 3 Golf Course and Clubhouse Improvements, tennis improvements and equipment replacement.


At the end of FY15, $2,880,038 had been set aside in the Dock Replacement Reserve. The Dock Replacement reserve was created to fund the replacement cost of the construction of the Town’s docks whenever it is determined they must be replaced. The replacement reserve is to be maintained at 100% of accumulated depreciation plus accumulated interest earned on the reserve. For the FY16 and FY17 budget, additional funding has been appropriated to increase the funding for this reserve. The transfer to the General Fund was decreased by $100,000 in FY16 and by an additional $100,000 in FY17. These funds will be transferred to the Dock Replacement Reserve.


The Par 3 Golf Course charges an additional $2 per round to fund a maintenance and improvement reserve. At the end of FY15, the balance is $351,246. In FY15 the Town Council approved a maintenance and improvement reserve for the Par 3 Club house which will be funded with a year- end transfer of 50% of the Par 3 golf course net profits. The reserve balance at the end of FY15 was $147,602.


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In FY10, a maintenance and improvement fee was implemented for the Tennis program. This reserve at the end of FY15 is $46,320 and has been set aside for improvements to the tennis centers.


The Recreation Enterprise Fund’s equipment replacement reserve allows for the purchase of capital equipment and is funded with accumulated replacement cost depreciation from Recreation Net Assets. The balance in the REF Equipment Replacement Fund for FY15 is $584,638.


Equipment Replacement Fund


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The Town-wide Equipment Replacement Fund is intended to fund the replacement cost of existing equipment, vehicles and computers when they reach the end of their useful life. This reserve significantly reduces the budgetary fluctuations due to purchases of large pieces of equipment and ensures compliance with the fixed asset inventory and depreciation schedule required by GASB34.


The balance in the Equipment Replacement Fund for year-end FY15 is $13,304,714. In FY13, the Town Council approved the use of a portion of this

reserve ($4,867,019) for internal financing for small underground utility projects financed by special assessments. The balance available for future projects is $3,768,598.


For FY17, the depreciation transfer will total $2,295,375 and expenditures for capital equipment are budgeted at $1,808,919.


Designation of General Fund Balance for Payment of Liability Related to Compensated Absences Leave Balances


A Reserve for Compensated Absences reduces the budgetary fluctuations due to the payout of accrued leave time to employees when they leave Town service. This reserve is funded at a rate of 100% of the fiscal year end accrued leave balances. Funds are appropriated annually from this reserve based upon estimates of pay-outs of eligible accrued vacation, sick and compensatory time and the related payroll tax liability. The balance in the reserve as of September 30, 2015, was

$3,168,790. The FY16 appropriation for the pay-out of eligible accrued vacation, sick and compensatory time from this reserve is $634,500 and the FY17 appropriation will be $505,930.


image

Health Insurance Reserve


The balance of the reserve in the Health Fund at the end FY15 is $5,740,869. These reserves guard against any deficiencies in the Town’s self-insurance health fund for active employees’ insurance expenditures.

The trend in the reserve balance is shown in the chart. The balance has been improving over the past 5 years due to good claims experience. The funding for the health insurance fund has remained flat since FY2013.


22

Capital Improvement Fund


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For many years, the Town funded all of the capital infrastructure improvements through pay-as-you-go financing. In 2010, the Town issued the first of two bonds for capital improvements to accelerate many large scale capital improvement projects identified in the 20 year plan. The Capital Improvement Fund has received a $1,000,000 transfer from the General Fund each year since 2010 to fund small capital projects that were not included in the 20 year plan. Once the bond proceeds have been spent on the remaining projects, it is proposed to return to pay-as-you-go financing. The FY17 appropriation was increased to $2,200,000 to

begin to build the reserves for capital projects once the bond proceeds have been spent.


OPEB (Other Post Employment Benefits) Trust


image

The Town’s OPEB Trust Fund was established in 2007 to comply with GASB Statements 43 and 54, which required the establishment of a liability for actuarially determined costs of retiree health benefits. This fund’s investments are overseen by the Town’s Investment Advisory Committee. The net asset balance in this trust is $26,629,096 as of September 30, 2015. The actuarially determined transfer from the General Fund for the OPEB liability for FY17 is $1,339,000. The Town continues to be well ahead of other government agencies in funding this liability.


Retirement Fund


image

The Town provides pension benefits for

General Employees, Lifeguards, Police Officers, and Firefighters. The funds were separately managed by 3 pension boards until the consolidation on April 1, 2012, into the Employee’s Retirement Fund. The Retirement Board oversees all of the Town’s pension assets and retirement programs. The net assets of the consolidated retirement fund at the end of FY15 were

$190,764,490. The reserve balance declined due to investment losses in FY15.


23

Contingency Reserves


Contingency reserves were established for the General Fund, Capital Fund, Equipment Replacement Fund, Recreation Enterprise Fund, Risk Insurance Fund and Health Insurance Fund to provide for unanticipated unbudgeted expenditures of a nonrecurring nature. The amount of the General Fund Contingency has been funded at 1.5% of the FY15 operating budget. The Capital Fund Contingency is appropriated at 10% of the capital budget, while the Equipment Replacement Fund, Risk, and Health Contingency Reserves are appropriated at $500,000 each. The Recreation Enterprise Fund Contingency is funded at 5% of the operating expenses. All of the contingency reserves are annually appropriated in the budget process from the net asset reserves of each of the funds. In most years a small amount from the contingency is allocated for expenditures through an affirmative vote of the Town Council.


The table below identifies the contingency budgets and actual expenditures for the fiscal years 2013 through 2017.

Contingency Reserves FY2013 – FY2017

Contingency

2013

2014

2015

2016

2017

General Fund Budget General Fund Actual

843,000

556,668

860,000

293,800

909,000

246,361

944,686

311,267

960,300

-0-

CIP Budget CIP Actual

201,000

-0-

205,000

-0-

205,000

-0-

208,000

-0-

348,600

-0-

ERF Budget ERF Actual

500,000

156,528

500,000

136,869

500,000

-0-

500,000

29,111

500,000

-0-

Risk Budget Risk Actual

500,000

-0-

500,000

-0-

500,000

-0-

500,000

-0-

500,000

-0-

Health Budget Health Actual

500,000

-0-

500,000

-0-

500,000

-0-

500,000

-0-

500,000

-0-

Recreation Budget Recreation Actual

235,600

35,000

249,220

-0-

272,100

39,000

285,300

135,030

321,200

-0-

Unassigned Net Position


image

All reserves are at or over the policy established minimum. The financial strength of the Town can be measured by the health of its reserves. Bond rating agencies look closely at the reserve levels and the financial policies in place when rating a municipality. In 2010 and 2013, the rating agencies reviewed the Town’s credit ratings in preparation for the issuance of the 2010 and 2013 Bonds.

They cited the Town’s healthy reserves, solid fiscal policies, and conservative management practices as some of the reasons for our exceptional bond ratings. Moody’s Investors Service gave the Town an Aa1 for the 2010 and 2013 Revenue Bonds and confirmed the Town’s Aaa issuer credit rating.

Standard and Poor’s issued a AA+ credit rating on the 2010 and 2013 Revenue bonds confirmed the Town’s issuer credit rating of AAA. These Revenue Bond ratings and issuer credit ratings are the highest ratings these two services issue and represent the highest quality investment grade debt.

The table and the chart below and on the following page summarize the trend of the unassigned net position, net asset balances, compensated absence, and replacement reserve actual balances for fiscal year ending FY11 through FY15 and estimated balances for FY16.



24

Reserve Balances Fiscal Years 2011 – 2016 Est.


Fund

2011

2012

2013

2014

2015

2016 Est.

General Fund

18,155,941

21,424,261

20,043,760

22,298,680

22,267,051

22,700,000

Compensated Absence

3,621,915

3,315,135

3,390,226

3,456,532

3,168,789

3,000,000

Equipment Replacement Fund


13,672,222


14,870,188


12,625,048


12,232,932


13,304,714


13,000,000

Recreation Enterprise Fund


413,966


707,381


486,466


1,025,665


179,645


179,000

Recreation ERF

458,002

397,132

472,319

472,319

584,638

590,000

Dock Replacement

2,240,125

2,395,723

2,551,321

2,715,680

2,880,038

3,140,000

Par 3 M&I Reserve

108,722

162,138

212,375

279,252

351,246

421,446

Tennis M&I Reserve

16,418

23,867

31,075

38,459

46,320

54,220

Par 3 Clubhouse M&I

147,602

320,000

Health Fund

2,683,896

3,234,334

4,025,042

5,025,134

5,740,869

5,732,839

Risk Fund

6,863,675

7,990,553

6,625,018

7,297,409

8,071,236

8,010,157

Capital Improvement Fund


5,393,924


5,623,928


4,990,855


5,670,416


5,898,531


6,800,000

Health - OPEB Trust

18,173,086

20,942,253

24,814,790

27,628,798

26,629,096

27,372,667

Pension Fund

170,564,741

187,286,530

198,460,764

216,001,372

190,764,490

190,710,979

Total

242,366,683

268,373,423

278,729,059

304,142,648

$280,034,265

$282,025,946


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26

Town of Palm Beach, Florida General Fund Revenues and Expenditures

Budget Comparison Fiscal Years 2016 - 2017


Budget FY2016

Budget FY2017

FY16 vs. FY17

$ Difference

FY16 vs. FY17

% Change


Revenues

Ad Valorem Taxes

$47,131,000

$50,581,000

$3,450,000

7.32%

Non Ad Valorem Taxes

8,005,000

8,103,000

$98,000

1.22%

Licenses & Permits

7,103,320

7,304,000

$200,680

2.83%

Intergovernmental

1,135,537

1,178,500

$42,963

3.78%

Charges for Services

3,867,388

3,816,550

-$50,838

-1.31%

Fines and Forfeitures

1,284,000

1,255,000

-$29,000

-2.26%

Investment Earnings

700,000

705,000

$5,000

0.71%

Miscellaneous Revenues

323,500

345,258

$21,758

6.73%

Interfund Transfers

785,000

685,000

-$100,000

-12.74%

Transfer From Fund Balance

1,579,586

1,466,230

-$113,356

-7.18%

Total Revenues

$71,914,331

$75,439,538

$3,525,207

4.90%

Expenditures

Department

Legislative

$95,600

$155,900

$60,300

63.08%

General Government

807,300

698,017

-$109,283

-13.54%

Town Manager

769,306

781,929

$12,623

1.64%

Advice and Litigation

550,000

561,000

$11,000

2.00%

Human Resources

851,243

888,575

$37,332

4.39%

Information Systems

2,320,819

2,460,413

$139,594

6.01%

Finance

2,028,839

2,109,302

$80,463

3.97%

Planning/Building/Zoning

4,050,642

4,316,599

$265,957

6.57%

Library

315,777

325,250

$9,473

3.00%

Fire-Rescue

11,743,196

12,161,865

$418,669

3.57%

Police

14,198,001

14,742,293

$544,292

3.83%

Emergency Management

46,300

46,300

$0

0.00%

Public Works

14,767,345

15,323,669

$556,324

3.77%

Contingency

944,686

960,300

$15,614

1.65%

Transfer to Other Funds

18,425,277

19,908,126

$1,482,849

8.05%

Total Expenditures

$71,914,331

$75,439,538

$3,525,207

4.90%


Revenues Over/(Under) Expenditures

$0

$0


27


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28


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Ad Valorem Taxes

$ 50,581,000

General Use Tax

5,903,000

Licenses/Permits

9,560,500

Intergovernmental

1,178,500

Charges for Services

3,816,550

Fines and Forfeitures

1,255,000

Interest

705,000

Miscellaneous

973,758

Use of Fund Balance

1,466,230

$ 75,439,538


29


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image

Acct # Title 2014 Actual 2015 Actual

    1. Ad Valorem Taxes


      2016

      Budget


      2016

      Projected


      2017

      Budget


      %

      Variance

      % of

      Total Budget

      311.100 Current Ad Valorem Taxes 39,080,698 43,860,760 47,131,000 47,131,000 50,581,000 7.32% 67.05%

      311.200 Back Taxes 30,228 9,128 - - - 0.00% 0.00%

      39,110,926

      43,869,888

      47,131,000

      47,131,000

      50,581,000

      7.32%

      67.05%

      312.000

      Sales, Use and Fuel Taxes

      312.410

      1-6 Cents Local Opt Fuel Tax

      210,104

      224,355

      220,000

      220,000

      225,000

      2.27%

      0.30%

      312.420

      1-5 Cents Local Opt Fuel Tax

      100,186

      105,126

      105,000

      105,000

      108,000

      2.86%

      0.14%

      310,290

      329,481

      325,000

      325,000

      333,000

      2.46%

      0.44%

      314.000

      Utility Services Taxes

      314.100

      Electricity Utility

      2,568,843

      2,554,383

      2,550,000

      2,550,000

      2,550,000

      0.00%

      3.38%

      314.200

      Simplified Telecom Tax

      1,030,492

      1,074,774

      1,100,000

      1,100,000

      1,100,000

      0.00%

      1.46%

      314.300

      Water Utility

      1,616,381

      1,663,154

      1,600,000

      1,650,000

      1,650,000

      3.13%

      2.19%

      314.400

      Gas Utility

      238,984

      255,299

      260,000

      270,000

      260,000

      0.00%

      0.34%

      314.800

      Propane Utility

      8,567

      11,050

      10,000

      10,000

      10,000

      0.00%

      0.01%

      5,463,267

      5,558,660

      5,520,000

      5,580,000

      5,570,000

      0.91%

      7.38%

      316.000

      Business Tax Receipts

      316.000

      Business Tax Receipts

      640,363

      659,635

      671,820

      671,820

      672,000

      0.03%

      0.89%

      316.100

      Business Tax Receipt Penalties

      62,348

      22,793

      25,000

      25,000

      25,000

      0.00%

      0.03%

      702,711

      682,428

      696,820

      696,820

      697,000

      0.03%

      0.92%

      322.000

      Building Permits

      322.100

      Building

      4,824,353

      6,754,745

      4,100,000

      5,250,000

      4,100,000

      0.00%

      5.43%

      322.200

      Electrical

      414,267

      575,422

      400,000

      475,000

      425,000

      6.25%

      0.56%

      322.300

      Plumbing

      255,943

      372,442

      250,000

      350,000

      290,000

      16.00%

      0.38%

      322.400

      Permit Processing

      45,250

      47,775

      30,000

      30,000

      30,000

      0.00%

      0.04%

      322.410

      Permit Penalty

      18,836

      121,606

      35,000

      120,000

      43,000

      22.86%

      0.06%

      322.500

      Except/Var. App.

      241,533

      172,361

      160,000

      200,000

      162,500

      1.56%

      0.22%

      322.510

      Consultants Fees

      8,740

      -

      -

      -

      -

      0.00%

      0.00%

      322.520

      Special Plan Review Fee

      338,350

      520,950

      325,000

      475,000

      370,000

      13.85%

      0.49%

      322.530

      Reinspection Fees

      1,500

      2,325

      2,500

      2,500

      2,500

      0.00%

      0.00%

      322.750

      Abandonments

      2,797

      381

      -

      1,500

      -

      0.00%

      0.00%

      322.800

      Architectural Fees

      169,880

      174,010

      140,000

      140,000

      140,000

      0.00%

      0.19%

      322.850

      Landmarks Submittal

      25,220

      26,620

      25,000

      25,000

      25,000

      0.00%

      0.03%

      322.900

      Mechanical Permits

      304,720

      490,507

      325,000

      450,000

      325,000

      0.00%

      0.43%

      322.905

      Contractor Registration Fee

      9,600

      9,500

      10,000

      6,350

      10,000

      0.00%

      0.01%

      322.910

      Landscape Permit

      8,845

      10,731

      8,000

      12,000

      10,000

      25.00%

      0.01%

      322.911

      Advanced Irrigation

      3,900

      300

      1,000

      -

      1,000

      0.00%

      0.00%

      322.915

      Miscellaneous Permit Fees

      100

      -

      -

      -

      -

      0.00%

      0.00%

      322.920

      Building Permit Search Fee

      30,956

      35,200

      30,000

      26,800

      30,000

      0.00%

      0.04%

      322.930

      Dune Vegetation Fee

      3,695

      -

      2,000

      -

      2,000

      0.00%

      0.00%

      322.940

      Permit Revision Fee

      210,875

      193,975

      175,000

      225,000

      190,000

      8.57%

      0.25%

      6,919,360

      9,508,850

      6,018,500

      7,789,150

      6,156,000

      2.28%

      8.16%

      323.000

      Franchise Fees

      323.100

      Electricity Franchise

      2,012,907

      1,999,420

      1,960,000

      1,960,000

      2,000,000

      2.04%

      2.65%

      323.400

      Gas Franchise

      159,633

      168,751

      200,000

      200,000

      200,000

      0.00%

      0.27%

      2,172,540

      2,168,171

      2,160,000

      2,160,000

      2,200,000

      1.85%

      2.92%

      329.000

      Other Licenses, Fees and Permits

      329.100

      Right Of Way Permits

      348,695

      369,973

      315,000

      375,000

      350,000

      11.11%

      0.46%

      329.200

      Residential Parking Plans

      28,340

      70,000

      60,000

      70,000

      87,500

      45.83%

      0.12%

      329.300

      Arlington Plan

      38,060

      2,760

      -

      -

      -

      0.00%

      0.00%

      329.400

      Taxi Permits

      4,150

      5,925

      2,000

      4,000

      -

      -100.00%

      0.00%

      329.470

      Flood Plain Management Permit Fee

      11,325

      16,800

      10,000

      13,500

      12,000

      20.00%

      0.02%

      329.500

      Newsrack Enclosure Admin Fee

      940

      940

      1,000

      1,000

      1,000

      0.00%

      0.00%

      329.930

      Charitable Solicitations Fee

      44,735

      40,030

      50,000

      50,000

      50,000

      0.00%

      0.07%

      329.960

      Char Solit Late Filing Fee

      5,710

      4,840

      7,000

      8,820

      7,000

      0.00%

      0.01%

      481,955

      511,268

      445,000

      522,320

      507,500

      14.04%

      0.67%

      331.000

      Federal Grants

      331.220

      Bullet Proof Vests Grant

      -

      4,212

      -

      2,566

      5,000

      100.00%

      0.01%

      331.240

      Fema Grant - Fire-Rescue

      -

      3,077

      -

      -

      -

      0.00%

      0.00%

      -

      7,289

      -

      2,566

      5,000

      100.00%

      0.01%

      334.000

      State Grants

      334.390

      Grants State Of Florida

      -

      -

      -

      -

      -

      0.00%

      0.00%

      -

      -

      -

      -

      -

      0.00%

      0.00%


      30



      2016


      2016


      2017


      %

      % of Total

      Acct #

      Title

      2014 Actual

      2015 Actual

      Budget

      Projected

      Budget

      Variance

      Budget

      335.000

      State Shared Revenues

      335.120

      State Revenue Sharing

      251,252

      255,278

      255,000

      255,000

      255,000

      0.00%

      0.34%

      335.150

      Alcoholic Beverage Lic

      23,796

      22,708

      25,000

      22,000

      22,000

      -12.00%

      0.03%

      335.180

      Local Govt. Sales Tax

      597,433

      631,987

      670,000

      670,000

      670,000

      0.00%

      0.89%

      335.230

      Fire Supplemental Compensation

      30,412

      29,293

      33,000

      30,000

      30,000

      -9.09%

      0.04%

      335.240

      911 Equip Reimbursement

      82,735

      99,026

      100,000

      104,000

      108,000

      8.00%

      0.14%

      335.290

      Seized Tag

      2,950

      2,667

      3,000

      3,000

      3,000

      0.00%

      0.00%

      335.490

      Fuel Tax Refund

      42,130

      18,236

      12,000

      18,000

      13,000

      8.33%

      0.02%

      1,030,708

      1,059,195

      1,098,000

      1,102,000

      1,101,000

      0.27%

      1.46%

      337.000

      Grants From Other Local Units

      337.200

      Ems Grant - Palm Beach County

      14,911

      21,165

      17,437

      17,437

      52,500

      201.08%

      0.07%

      14,911

      21,165

      17,437

      17,437

      52,500

      201.08%

      0.07%

      338.000

      Shared Revenues-Other Local Units

      338.200

      County Occ. Licenses

      22,240

      15,040

      15,000

      15,000

      15,000

      0.00%

      0.02%

      338.600

      $12.50 Citation Monies

      3,555

      -

      5,000

      5,000

      5,000

      0.00%

      0.01%

      25,795

      15,040

      20,000

      20,000

      20,000

      0.00%

      0.03%

      342.000

      Public Safety

      342.100

      Special Assignment Ot - Other

      688,627

      672,086

      625,000

      675,000

      500,000

      -20.00%

      0.66%

      342.120

      Police Id Cards

      15,264

      20,295

      17,500

      17,500

      17,500

      0.00%

      0.02%

      342.130

      Burglar Alarm False Alarm Fees

      81,550

      79,719

      50,000

      50,000

      70,000

      40.00%

      0.09%

      342.140

      Burglar Alarm Registration Fee

      47,674

      95,745

      95,000

      95,000

      95,000

      0.00%

      0.13%

      342.150

      Burglar Alarm - Penalties

      2,828

      7,200

      5,000

      5,000

      5,000

      0.00%

      0.01%

      342.160

      Burglar Alarm - Direct Connect

      6,210

      13,661

      15,000

      15,000

      20,000

      33.33%

      0.03%

      342.170

      Valet Parking Permit

      10,150

      11,100

      10,000

      10,000

      10,000

      0.00%

      0.01%

      342.200

      Tent Permits

      26,517

      21,074

      20,000

      20,000

      20,000

      0.00%

      0.03%

      342.210

      Special Detail-Fire

      30,285

      32,328

      30,000

      30,000

      32,000

      6.67%

      0.04%

      342.220

      Fire Prev Bonfires

      3,300

      3,300

      3,500

      3,500

      3,300

      -5.71%

      0.00%

      342.225

      Fire Prev Fire Hydrant

      -

      -

      500

      800

      1,000

      100.00%

      0.00%

      342.230

      Fire Prev Hot Work

      55,903

      67,511

      53,000

      53,000

      60,000

      13.21%

      0.08%

      342.240

      Fire Prev Public Assembly

      1,000

      2,500

      2,000

      3,000

      1,500

      -25.00%

      0.00%

      342.250

      False Fire Alarms

      25,494

      14,377

      20,000

      20,000

      15,000

      -25.00%

      0.02%

      342.300

      Fire Prev Fireworks

      20,000

      20,630

      20,000

      20,000

      10,000

      -50.00%

      0.01%

      342.500

      Bldg. Insp. Fund Fees

      8,924

      12,696

      8,000

      10,000

      10,000

      25.00%

      0.01%

      342.501

      Radon Gas

      8,924

      12,597

      8,000

      10,000

      10,000

      25.00%

      0.01%

      342.510

      Fire Prev Technical Fire Insp

      48,693

      49,500

      40,000

      40,000

      48,000

      20.00%

      0.06%

      342.520

      Fire Prev Annual Ins Fee

      113,600

      108,385

      115,000

      115,000

      115,000

      0.00%

      0.15%

      342.600

      Ems Transport Fees

      321,920

      466,386

      410,000

      410,000

      400,000

      -2.44%

      0.53%

      1,516,863

      1,711,090

      1,547,500

      1,602,800

      1,443,300

      -6.73%

      1.91%

      343.000

      Physical Enviornment

      343.400

      Special Solid Waste

      11,235

      10,040

      10,000

      10,000

      10,000

      0.00%

      0.01%

      343.410

      Solid Waste

      947,431

      895,065

      976,028

      976,028

      995,000

      1.94%

      1.32%

      343.430

      Comp. Garbage Collection Fee

      239,488

      258,268

      269,860

      269,860

      275,000

      1.90%

      0.36%

      343.440

      SWA Recycling Revenue

      25,186

      24,073

      25,000

      25,000

      25,000

      0.00%

      0.03%

      343.920

      Historic Speciman Tree Fee

      3,094

      4,641

      5,000

      5,000

      5,000

      0.00%

      0.01%

      1,226,434

      1,192,087

      1,285,888

      1,285,888

      1,310,000

      1.88%

      1.74%

      344.000

      Transportation

      344.505

      Prkg Meter Royal Palm Way Lot

      10,668

      9,939

      10,500

      10,500

      10,500

      0.00%

      0.01%

      344.515

      Prkg Meter Ocean Front

      539,827

      570,636

      550,000

      575,000

      575,000

      4.55%

      0.76%

      344.520

      Prkg Meter Lake Front

      23,906

      28,019

      28,000

      31,000

      31,000

      10.71%

      0.04%

      344.525

      Prkg Meter Phipps Ocean Front

      84,379

      92,852

      90,000

      90,000

      90,000

      0.00%

      0.12%

      344.530

      Prkg Meter Peruvian

      105,557

      110,226

      107,000

      116,000

      115,000

      7.48%

      0.15%

      344.540

      Prkg Meter Bradley Place

      6,206

      7,805

      6,500

      9,000

      9,000

      38.46%

      0.01%

      344.560

      Parking Meter Royal Palm Way

      37,877

      40,401

      45,000

      35,000

      35,000

      -22.22%

      0.05%

      344.599

      Other Parking Placard Programs

      149,810

      155,495

      160,000

      160,000

      160,000

      0.00%

      0.21%

      958,230

      1,015,373

      997,000

      1,026,500

      1,025,500

      2.86%

      1.36%

      349.000

      Other Charges for Services

      349.400

      Certification Copy

      514

      1,027

      500

      500

      500

      0.00%

      0.00%

      349.420

      Misc Copies

      6,260

      2,890

      4,000

      4,000

      4,000

      0.00%

      0.01%

      349.430

      Meeting Tapes Sales

      96

      -

      -

      -

      -

      0.00%

      0.00%

      349.450

      Lien Search Fee

      31,880

      35,005

      32,000

      32,000

      33,000

      3.13%

      0.04%

      349.480

      Microfiche/Scanned Documents

      906

      131

      500

      250

      250

      -50.00%

      0.00%

      349.500

      Data Processing Services

      2

      -

      -

      -

      -

      0.00%

      0.00%

      39,658

      39,053

      37,000

      36,750

      37,750

      2.03%

      0.05%


      31



      2016


      2016


      2017


      %

      % of Total

      Acct #

      Title

      2014 Actual

      2015 Actual

      Budget

      Projected

      Budget

      Variance

      Budget

      351.000

      Judgments and Fines

      351.100

      Fines - Other Parking

      711,491

      617,897

      725,000

      725,000

      725,000

      0.00%

      0.96%

      351.110

      Fines - Parking Meters

      75,356

      85,667

      75,000

      75,000

      75,000

      0.00%

      0.10%

      351.120

      Row Parking Violation Fines

      16,357

      9,400

      15,000

      15,000

      15,000

      0.00%

      0.02%

      351.150

      Moving Violations

      9,875

      12,404

      10,000

      10,000

      10,000

      0.00%

      0.01%

      351.300

      Revenue/2nd $ Funding

      3,546

      1,864

      3,000

      3,000

      2,000

      -33.33%

      0.00%

      351.600

      Boot Fees

      27,300

      21,700

      26,000

      26,000

      26,000

      0.00%

      0.03%

      351.800

      Penalty - Other Parking

      199,705

      169,867

      190,000

      190,000

      190,000

      0.00%

      0.25%

      351.900

      Penalty - Parking Meters

      24,792

      29,171

      30,000

      30,000

      27,000

      -10.00%

      0.04%

      1,068,422

      947,970

      1,074,000

      1,074,000

      1,070,000

      -0.37%

      1.42%

      354.000

      Violations of Local Ordinances

      354.400

      Code Compliance Fines

      845,075

      142,380

      200,000

      200,000

      175,000

      -12.50%

      0.23%

      354.410

      Code Compliance Admin Fee

      10,687

      9,175

      10,000

      10,000

      10,000

      0.00%

      0.01%

      855,762

      151,555

      210,000

      210,000

      185,000

      -11.90%

      0.25%

      361.000

      Interest and Other Earnings

      361.120

      Fmivt Interest

      214,173

      104,401

      250,000

      150,000

      280,000

      12.00%

      0.37%

      361.121

      SBOA Interest

      -

      95,248

      -

      -

      -

      0.00%

      0.00%

      361.130

      PFM/TD Bank Interest Income

      67,477

      125,574

      150,000

      150,000

      150,000

      0.00%

      0.20%

      361.140

      Interest - Certificates of Deposit

      65,773

      246,192

      250,000

      250,000

      250,000

      0.00%

      0.33%

      361.150

      Investment Earnings/Ad Valorem

      36,304

      26,170

      50,000

      30,000

      25,000

      -50.00%

      0.03%

      383,727

      597,585

      700,000

      580,000

      705,000

      0.71%

      0.93%

      362.000

      Rents and Royalties

      362.120

      Room Rental Dep - South Fire

      -

      79

      -

      -

      -

      0.00%

      0.00%

      362.140

      Rooftop Lease

      42,749

      57,520

      35,000

      35,000

      36,000

      2.86%

      0.05%

      42,749

      57,599

      35,000

      35,000

      36,000

      2.86%

      0.05%

      364.000

      Disposition of Fixed Assets

      364.410

      Surplus Furn & Equipment

      (761)

      2,172

      -

      -

      -

      0.00%

      0.00%

      364.430

      Sale of Land

      353,100

      -

      -

      -

      -

      0.00%

      0.00%

      352,339

      2,172

      -

      -

      -

      0.00%

      0.00%

      369.000

      Other Miscellaneous Revenues

      369.500

      State Highway Lighting Maint

      74,324

      76,551

      71,000

      71,000

      95,000

      33.80%

      0.13%

      369.540

      Rebate For Town Towing

      2,652

      2,631

      2,000

      2,600

      2,000

      0.00%

      0.00%

      369.910

      Credit Card Customer Surcharge

      3,450

      6,325

      2,500

      6,000

      6,000

      140.00%

      0.01%

      369.950

      DC Forfeiture Transfer from ICMA

      -

      -

      136,000

      150,000

      130,000

      -4.41%

      0.17%

      369.990

      Miscellaneous Revenue

      173,667

      22,958

      20,100

      20,100

      19,758

      -1.70%

      0.03%

      254,093

      108,465

      231,600

      249,700

      252,758

      9.14%

      0.34%

      381.000

      Interfund Transfer

      381.180

      Use Of Fund Balance

      -

      -

      2,599,541

      1,579,586

      1,466,230

      -43.60%

      1.94%

      381.970

      Interfd Transfer-Marina

      885,000

      885,000

      785,000

      785,000

      685,000

      -12.74%

      0.91%

      885,000

      885,000

      3,384,541

      2,364,586

      2,151,230

      -36.44%

      2.85%

      63,815,740

      70,439,384

      72,934,286

      73,811,517

      75,439,538

      3.43%

      100.00%



      32


      image


      Salaries and Wages

      $ 24,737,579

      Employee Benefits

      16,909,548

      Contractual

      9,432,209

      Commodities

      1,810,344

      Capital Outlay

      399,807

      Contingency

      960,300

      Depreciation

      2,295,375

      Other

      18,894,376

      $ 75,439,538


      33


      image


      General Government

      $ 10,703,028

      Public Safety

      29,011,945

      Physical Environment

      12,632,964

      Transportation

      1,128,181

      Culture and Recreation

      2,055,294

      Interfund Transfers

      19,908,126

      $ 75,439,538


      34


      image


      Police

      14,742,293

      Legislative

      155,900

      Advice and Litigation

      561,000

      Public Works

      15,323,669

      General Government

      698,017

      Information Systems

      2,460,413

      Fire-Rescue

      12,161,865

      Human Resources

      888,575

      Town Manager

      781,929

      Other

      21,239,976

      Planning, Zoning & Building

      4,316,599

      Finance

      2,109,302

      $ 75,439,538


      35



      Program

      FY2015

      Actual

      FY2016

      Budget

      FY2016

      Adjusted*

      FY2016

      Projected

      FY2017

      Budget

      %

      Change

      % of Total GF Budget


      LEGISLATIVE


      111


      148,701


      95,600


      263,491


      221,824


      155,900


      63.08%


      0.21%

      GENERAL GOVERNMENT

      113

      1,006,663

      807,300

      1,104,400

      1,040,900

      698,017

      -13.54%

      0.93%

      TOWN MANAGER'S OFFICE

      121

      781,481

      769,306

      777,926

      777,926

      781,929

      1.64%

      1.04%

      ADVICE & LITIGATION

      122

      466,456

      550,000

      570,321

      570,321

      561,000

      2.00%

      0.74%

      INFORMATION SYSTEMS

      125

      1,997,842

      2,320,819

      2,438,455

      2,385,882

      2,460,413

      6.01%

      3.26%

      HUMAN RESOURCES

      123

      595,059

      851,243

      862,140

      862,140

      888,575

      4.39%

      1.18%

      FINANCE

      Records Management

      131

      349,843

      368,287

      373,287

      319,317

      351,507

      -4.56%

      0.47%

      Financial Management

      141

      972,479

      1,023,699

      1,024,727

      1,022,566

      1,074,825

      4.99%

      1.42%

      Purchasing 144 575,887 636,853 636,862 636,208 682,970 7.24% 0.91%

      1,898,209

      2,028,839

      2,034,876

      1,978,091

      2,109,302

      3.97%

      2.80%

      PLANNING/ZONING/BUILDING

      Planning & Zoning

      211

      703,810

      743,213

      795,052

      729,753

      692,676

      -6.80%

      0.92%

      Permit Issuance

      212

      1,042,625

      1,261,398

      1,336,835

      1,335,655

      1,394,916

      10.58%

      1.85%

      Inspection/Compliance

      213

      1,306,269

      1,274,087

      1,344,856

      1,284,848

      1,440,329

      13.05%

      1.91%

      Landmarks Preservation

      214

      185,648

      156,840

      195,025

      165,642

      167,520

      6.81%

      0.22%

      Fire Prevention

      215

      371,109

      312,807

      312,807

      322,028

      322,518

      3.10%

      0.43%

      Code Enforcement 216 273,487 302,297 302,297 232,325 298,640 -1.21% 0.40%

      3,882,948

      4,050,642

      4,286,872

      4,070,251

      4,316,599

      6.57%

      5.72%

      LIBRARY SERVICES

      321

      306,580

      315,777

      315,777