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TOWN OF PALM BEACH, FLORIDA


COMPREHENSIVE ANNUAL BUDGET FISCAL YEAR 2016

(October 1, 2015 - September 30, 2016)


Mayor and Town Council


Gail L. Coniglio, Mayor

Michael J. Pucillo, Town Council President Richard M. Kleid, Town Council President Pro-Tem

Danielle H. Moore, Town Council Member Penelope D. Townsend, Town Council Member Robert N. Wildrick, Town Council Member


Town Manager


Thomas G. Bradford


Prepared by the Finance Department Jane Struder, Finance Director

(561) 838-5400

www.townofpalmbeach.com

TOWN O

ORGANIZAT

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F PALM BEACH

IONAL STRUCTURE


CITIZENS OF PALM BEACH


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ELECT



MAYOR

Gail L. Coniglio

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TOWN COUNCIL



PRESIDENT

Michael J. Pucillo

PRESIDENT PRO-TEM

Richard M. Kleid

Danielle H. Moore Penelope D. Townsend Robert N. Wildrick

APPOINTS


TOWN ATTORNEY

John C. Randolph


TOWN MANAGER

Thomas G. Bradford

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ADVISORY BOARD AND COMMISSIONS


DIRECTOR OF RECREATION

Beth Zickar

DEPUTY TOWN MANAGER

Jay Boodheshwar



DIRECTOR OF PUBLIC WORKS

H. Paul Brazil

DIRECTOR OF PUBLIC SAFETY

Kirk W. Blouin


DIRECTOR OF PLANNING, ZONING AND BUILDING

John Page

DIRECTOR OF

Human Resources Danielle Olson


DIRECTOR OF FINANCE

Jane Struder


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


THE BUDGET AS A POLICY DOCUMENT


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


THE BUDGET AS AN OPERATIONS GUIDE


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


THE BUDGET AS A FINANCIAL PLAN


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


THE BUDGET AS A COMMUNICATIONS DEVICE


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


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A STEP BY STEP GUIDE


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


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


Introduction


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


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


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


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


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


Debt Service, Capital, Enterprise, Internal Service and Trust & Agency Funds


These sections include budget summaries, program descriptions, trend analyses and income statement analyses for the Town’s governmental (other than general), enterprise, internal service and trust & agency funds.


Appendix


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


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


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The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Presentation to the Town of Palm Beach for its annual budget for the fiscal year beginning October 1, 2014.


In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device.


The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.


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Introduction

Budget Message 1

Strategic Planning and Key Results Measurement 18

Introductory Information

Map 25

Town Overview/Demographics 26

Assessed Valuation and Millage Rate 27

Town History 31

Financial Policies 33

Budget Preparation Process 38

Budget Calendar 43

Financial Structure 44

Budget Summary

Fund Budget Overview 49

Budget Summary by Fund Type, Revenues and Expenditures 50

Summary of Major Revenues by Fund Type 52

Summary of Expenditure Classifications by Fund Type 54

Reserve Analysis 57

Capital Expenditures 63

General Fund

General Fund Revenues and Expenditures Budget Comparison 65

Revenues

General Fund Revenues 67

Major Revenue Sources 71

Expenditures

General Fund Expenditures 81

Legislative

Legislative (111) 85

General Government

General Government (113) 87

Town Manager

Town Manager’s Office Organization Chart 90

Administrative Management (121) 92

Advice and Litigation

Advice and Litigation (122) 93

Information Systems

Information Systems (125) 95

Human Resources

Human Resources Organization Chart 100

Human Resources (123) 103

Finance

Finance Organization Chart 110

Finance Department Revenue and Expenditure Summary 112

Records Management (131) 113

Financial Management (141) 115

Purchasing (144) 118

Planning, Zoning and Building

Planning, Zoning and Building Organization Chart 122

Planning, Zoning and Building Department Revenue and Expenditure Summary 124

Planning and Zoning (211) 126

Permit Issuance (212) 128

Inspection and Compliance (213) 131

Landmarks Preservation (214) 133

Fire Prevention (215) 135

Code Enforcement (216) 137

Fire-Rescue

Fire-Rescue Department Organization Chart 140

Fire-Rescue Department Revenue and Expenditure Summary 143

Fire Administration (411) 145

Operations (417) 148

Training (418) 152

Ocean Rescue (419) 155

Police

Police Department Organization Chart 160

Police Department Revenue and Expenditure Summary 163

Administrative Management (421) 165

Organized Crime Vice and Narcotics – OCVAN (422) 168

Records Information System Unit (423) 170

Training and Community Relations Unit – TCR (424) 172

Communications Unit (425) 175

Crime Scene/Evidence Unit (426) 177

Patrol (428) 179

Criminal Investigation Unit (429) 183

Parking Control Unit (430) 185

Public Works

Public Works Department Organization Chart 188

Public Works Department Revenue and Expenditure Summary 193

Administrative Management (511) 195

Street Repair and Maintenance (521) 196

Traffic Control (523) 198

Street Lighting (524) 200

Storm Sewer Maintenance (531) 202

Sanitary Sewer Maintenance (532) 205

Sanitary Sewage Treatment (533) 208

Residential Collection (541) 209

Commercial Collection (542) 211

Refuse Disposal (543) 212

Yard Trash Collection (544) 213

Recycling (545) 215

Beach Cleaning (546) 217

Landscape Maintenance (551) 218

Facility Maintenance (554) 220

Meter Maintenance and Collection (558) 222

General Engineering Services (561) 223

Right of Way Inspections (565) 225

Equipment Operation and Maintenance (571) 226

Coastal Management (581) 228

Other

Library Services (321) 232

Transfers to Other Funds (611 to 625) 233

Emergency Management (710) 234

Contingent Appropriations (711) 235

Debt Service

Debt Administration 237

2010A and 2013 Revenue Bonds (Fund 205) 242

2010B Worth Avenue Revenue Bond (Fund 206) 243

Capital Funds

Capital Funds 245

Capital Projects by Project Type and Fund 246

Impact of Capital Investments on Operating Budget 247

Capital Improvement Fund (Fund 307)

Five Year Capital Improvement Pay-as-you-go/Facilities Program 249

Pay-as-you-go Capital Improvement Fund 250

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

CCMP FY15 Accomplishments and FY16 Action Plan 251

Comprehensive Coastal Management Project Fund 263

Coastal Management Program Budget 265

Town Facilities Project Fund (Fund 310)

Town Facilities Fund 267

Worth Avenue Assessment District (Fund 311)

Worth Avenue Maintenance 269

Accelerated Capital Fund (Fund 314)

2013 Accelerated Capital Projects Fund 271

Accelerated Capital Improvement Program Budget Report 272

Project Fact Sheets

Recreation Enterprise Fund (Fund 403)

Recreation Enterprise Fund Organization Chart 304

Recreation Enterprise Fund Revenue and Expenditure Summary 306

Marina 307

Golf Course 311

Tennis 317

Recreation Center 321

Administration 324

Capital Program 325

Depreciation Program 326

Equipment Replacement 327

Internal Service Funds

Self Insurance – Risk

Self Insurance Fund – Risk Management (Fund 501) 329

Self Insurance – Health

Self Insurance Fund – Health Benefit (Fund 502) 333

Equipment Replacement Fund

Equipment Replacement Fund (Fund 320) 335

Trust and Agency Funds

Retirement Fund 339

Employees Retirement System (Fund 600)

Employees Retirement Fund 345

Health Insurance Trust (Fund 610)

Health Insurance Trust 347

Retiree Sliding Scale Insurance Premium Rates 2016 351

Appendix

Authorized Positions 355

Donation Reserve Account Summary 360

Financial Policies

Fund Balance 361

Contingency Reserve – General Fund 367

Designation of General Fund Balance - Liability Related to Compensated Absences Leave Balances 368

Reserve for Encumbrances, Continuing Appropriations, and Prepaid Expenses 369

Contingency Reserve – Capital Fund 370

Equipment Replacement Reserve 371

Contingency Reserve – Equipment Replacement Fund 372

Recreation Enterprise Fund Reserve 373

Dock Replacement Reserve – Recreation Enterprise Fund 374

Contingency Reserve – Recreation Enterprise Fund 375

Contingency Reserve – Recreation Enterprise Fund – Capital Fund 376

Equipment Replacement Reserve – Recreation Enterprise Fund 377

Recreation Enterprise Fund – Maintenance and Improvement Reserves 378

Reserve for Catastrophic Exposures/Emergencies – Risk Fund 379

Contingency Reserve – Risk Fund 380

Contingency Reserve – Health Insurance Fund 381

Index

Budgetary Control 382

Debt Management Policy 383

Revenue Shortfall Plan 384

Index… 387

Glossary

Glossary 392


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October 1, 2015

TOWN OF PALM BEACH

Office of the Town Manager


Honorable Mayor, Town Council

and Citizens of the Town of Palm Beach


Submitted herewith is the Annual Budget and Financial Plan for the Town of Palm Beach for the fiscal year commencing October 1, 2015 (FY2016). Expenditures from all operating, capital projects, and debt service funds, total $166,440,947. This budget is of note in that the property tax rate providing revenue to the General Fund is recommended to be reduced to (3.3779), a 0.82% millage rate decrease. The taxable value for FY16 has been estimated by the Property Appraiser to be $14,687,090,837, 9.74% over FY15. In preparing this 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 updated; and 5) unappropriated fund balances should be maintained at sufficient levels.

·

FY16 Townwide Budget Priorities


At the May 12, 2015 and the June 9, 2015, Town Council meetings, the Town Council adopted the Townwide budget priorities for FY16. The top 3 budget priorities adopted are as follows:


  1. Continue with adoptions of the 10 Year Beach Management Program. FY2016 goals include sand placement in Reaches 7 and 8, extend Corps disposal area in Reach 2 and begin multi-year groin rehabilitation process. Re-assess plan to consider dredge vs mined sand. How to pay for groins and set timelines. Results of EIS. This budget includes an additional $3,238,220 for the Coastal Program.

  2. Target annual operating expenditures that would result in a millage rate that would result in $0 increase for homestead property owners. This budget meets this goal.

  1. Develop a financing plan for the Townwide underground utilities project. Staff will be working on this goal throughout the coming year. A referendum has been scheduled for March 15, 2016 for elector approval of $90 million in double- barreled general obligation bonds.


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    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 an understanding and policy analysis of the FY16 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 FY16 budget expenditure 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 utilizes ad valorem (property) taxes as a direct revenue source. The adopted millage rate is 3.3779 which is less than the FY 15 rate of 3.4058 representing a 0.82% millage rate decrease and an 8.32% increase over the rolled back rate of 3.1184.


General Fund expenditures increased by 6.9% over FY15. This increase includes an additional $3,238,220 transfer to the Coastal Management Fund. If this increase had not been included, the General Fund budget would have increased by 2.21% over FY15. Highlights of the FY16 budget include:


  1. Based upon the Property Appraiser's Preliminary Certification issued July 1, 2015, existing property taxable values in the Town have risen 9.74% over the prior year.

  2. The budget includes an increase in EMS fees.

  3. Forfeiture funds of $136,000 from the Defined Contribution Program have been included as a revenue source to offset FY16 Defined Contribution Costs.


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  4. A total of 4.91 new FTE positions have been included in the budget, 3.5 in the General Fund.

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

  6. The pension increase includes an additional $291,855 contribution to begin to fund the Retirement Fund experience study increases including the costs of the new mortality tables required by the State to be used in the actuarial assumptions. The ultimate increases are projected to be $875,564.

  7. The Defined Contribution total includes the Town discretionary 4% increase for a total of an 8% Town match to employee contributions.

  8. Funding for Health Insurance has remained flat for FY16 and is in keeping with the findings of our consultant Willis.

  9. The budget includes funding for new capital equipment purchases in the Police and Fire-Rescue Departments. These items include:

    1. Opticom devices for the major intersections, which automate a green light for emergency vehicles ($95,000)

    2. Opticom emergency response units, for 20 police vehicles ($76,000)

    3. StarChase Pursuit Management Systems which deploys tracking devices onto fleeing vehicles ($16,800)

  10. Additional Funding (an increase of 3% or $30,000) for the transfer to the Capital Improvement Fund to begin to build up reserves for future capital projects once the bond proceeds have been spent and to adjust for inflation.

  11. An increase in the transfer to the Debt Service Fund of $165,462 for principal and interest payments on the Town’s bonds.

12)A reduction of $397,000 in the transfer to the OPEB trust fund due to positive experience reflected in the actuarial study.


Revenues

In the General Fund, total revenues are expected to increase by $4,618,987 (6.86%) from the adopted FY15 budget. The changes by revenue type are shown on the table on the following page.


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Revenue


FY2015


FY2016

FY15 vs. FY16

Difference

%

Change

Ad Valorem Taxes

$43,424,300

47,131,000

$3,706,700

8.54%

Non Ad Valorem Taxes

7,937,500

8,005,000

67,500

0.85%

Licenses & Permits

6,835,600

7,160,320

324,720

4.75%

Intergovernmental

1,079,750

1,135,437

55,687

5.16%

Charges for Services

3,573,600

3,867,388

293,788

8.22%

Fines and Forfeitures

1,210,000

1,284,000

74,000

6.12%

Investment Earnings

578,694

700,000

121,306

20.96%

Miscellaneous

221,000

266,600

45,600

20.63%

Interfund Transfers

885,000

785,000

-100,000

-11.30%

Transfers For Contingency and Compensated Absences


1,549,900


1,579,586


29,686


1.92%

Total Revenues

$67,295,344

$71,914,331

$4,618,987

6.86%


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Ad Valorem Revenue


The FY16 budget contains an increase in property tax revenues of 8.54% sufficient to cover increases in operating expenses and an additional $3,238,220 transfer to the Coastal Management Fund.

Non Ad Valorem Revenue

Total non ad valorem revenues (excluding transfers of fund balance) are anticipated to increase by $912,287 from the FY15 revenue budget. The differences by revenue type are described in detail, as follows:



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Inventory of Assets

The estimated inventory of parts, supplies, fuel and materials on hand as of October 1, 2015, was $471,649 and the total fixed asset inventory (which includes machinery, equipment, and vehicles with a value over $2,500 and computer equipment with a value over $1,500) was $19,746,204`.


Financial Policies


The Town has 19 formally adopted financial policies. The establishment of specific reserve policies is an important part of prudent financial management and the practice is strongly recommended by the Government Finance Officers Association (GFOA) and the National Advisory Committee on State and Local Budgeting (NACSLB).


Copies of the Town’s financial policies can be found in the back of this document in the appendix.


Acknowledgements


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,



TBradford

Thomas G. Bradford Town Manager

cc: Department Directors

Jay Boodheshwar, Deputy Town Manager


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Strategic Planning and Performance Measurement


In 2003, the Town of Palm Beach developed and adopted a strategic plan. The development of the strategic plan involved input from elected officials, citizens, the business community, and staff. In conjunction with the Town’s strategic plan, staff developed an organizational vision statement which included input from all employees. Both the strategic plan and the vision statement, in addition to annually adopted Townwide goals, help us to form our department and program goals. Outlined in the following pages is a summary of our strategic plan, organizational vision, and departmental goals for FY16.


Strategic Planning


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


A Legacy Worth Keeping


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


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


Quality and Responsive Town Government


Town government is supported by a respected Mayor and Town Council, a skilled and dedicated staff, and by the active volunteer participation of many citizens.

Palm Beach provides residents with the highest level of safety and security through its vigilance and commitment to high quality training and state-of-the-art equipment. The Town has maintained its fiscal strengths with resourceful budgeting and prudent management.


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In the future, we envision...


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


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


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


Public Facilities and Infrastructure


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


In the future we envision...


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


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


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



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Character and Quality of Life


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


In the future we envision...


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


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


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


Town Staff Vision


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


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OUR VISION


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


Our Town Rich in history… Rich in service…

Always exceptional!


OUR VALUES

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

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

Open, timely communication Personal responsibility and accountability


This is a commitment by the employees of the Town of Palm Beach.

Our success as a team is dependent upon our actions being consistent with the vision & values we profess.


The Vision/Strategic Plan/Performance Measurement Process


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


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


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



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The Vision/Strategic Plan/Goals and Performance Measurement Process


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Townwide Budget Priorities for FY2016


The Town Council’s annual budget priorities for FY2016 are outlined below. These priorities were developed with input from the Mayor and Town Council, Town Manager, Department Directors, and staff and finalized at the June 9, 2015, Town Council meeting.


Once the Mayor and Town Council set the FY2016 priorities, the Departments developed goals and objectives that would accomplish the priorities. In addition, the Departments developed other major initiatives for the year. The Council priorities and Departmental goals will be reviewed on a continual basis throughout the fiscal year.


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


Town Council Priority #1

Continue with adoption of the 10 year Beach Management Program. FY16 goal includes sand placement in Reaches 7 and 8, extend Corps disposal area in Reach 2 and begin multi-year groin rehabilitation process. Re- assess plan to consider dredge vs. mined sand. Research how to pay for groins and set timelines. Review results of EIS.

Department

Department Goals

Town Manager

  • Review updated 10 year beach management plan with the Shore Protection Board and Town Council. Successfully re- nourish Reach 7 with dune work in Reach 8, if possible. Work with Shore Protection Board and Town Council on feasibility of proposed groin rehabilitation program. Continue with Completion of the Reach 8 EIS.

Public Works

  • Continue pursuit of required Federal permits in accordance with BMA. Continue BMA and permit required monitoring. Construct shore protection projects in accordance with the 10- year plan.

Town Council Priority #2

Target annual operating expenditures that would result in a millage rate that would result in a $0 increase for homestead property owners.

Department

Department Goals

Town Manager and Finance

  • Work with the Town Council and Department Staff to prepare a FY16 budget that is fiscally responsible and results in no tax increase for homestead property owners. (Goal was achieved)

Town Council Priority #3

Develop a financing plan for the Townwide underground utilities project.


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Department

Department Goals

Town Manager and Finance

  • Work with the UUTF, Consultants and the Town Council to prepare a financing plan for the underground utilities project. Referendum for Double-Barreled General Obligation Bonds scheduled for March 15, 2016.



Department Performance Measures


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


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Location FY2016


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Palm Beach is located on a barrier island east of West Palm Beach, Florida in Palm Beach County. The land area of the Town is approximately 3.77 square miles with

12.1 miles of coastline on the Atlantic Ocean. The Town is also bound on the west by 15.9 miles of Intracoastal frontage (Lake Worth), on the north by the Palm Beach Inlet, and on the south by the Town of South Palm Beach.


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Town Overview/Demographics FY2016


DEMOGRAPHICS


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Palm Beach at a Glance

Date of Incorporation April 17, 1911

Form of Government Council/Manager

Land Area 3.77 Square Miles

FY2016 General Fund Budget $71.9 Million

Taxable Property Valuation $14.7 Billion


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Town of Palm Beach Demographics


Population

2014 (Univ of Florida Est)


8,170

Service Statistics

Police Stations


1

2013 (Univ of Florida Est)

8,168

Fire-Rescue Stations

3

2010 (Census)

8,161

Public Elementary School

1

2000

9,676

Public Library

1

1990

9,814

Recreation Facilities

1980

9,432

Tennis Courts

14

1980

9,086

Par 3 Golf Course

1

1960

6,055

Marina (88 slips)

1

1950

3,886

Community Building

1

Playfields

5

Bicycle Paths

9.3 miles

Resident Statistics

Picnic Tables

77

Median Age

68.7 yrs.

Outdoors Grills

28

Avg. Household Size

1.74

Recreation Areas

Median Home Value

$924,100

Phipps Ocean Park

24 acres

Seaview Park

4.6 acres

Neighborhood Parks

Racial Composition Bradley Park 4.5 acres

Caucasian & Other Races 94.5% Kaplan Park .3 acres Hispanic/Latino 3.9% Special Use Parks

African American .6% Public Park on Beach 3.0 acres

Asian 1.0% Municipal Beach 5.60 acres Peruvian/So. County Road .24 acres

Bond Ratings Southern Blvd. Causeway 9.60 acres

2010/2013

Revenue Bond

Issuer’s Rating

Nature Islands 39 acres

Moody’s Aa1 Aaa

S&P AA+ AAA Registered Voters 7,705



26

Taxable Value and Millage Rate


The Town Council approved a millage rate of 3.3779 for FY16, a decrease from the FY15 millage rate of 3.4058. Taxable value increased 9.74% to $14,687,090,837 for FY16. Ad Valorem revenue of $47,130,948 is included in the FY16 budget.

Town adopted final millage rate is above rollback but below maximum millage rates. The increase in tax revenue from the rollback rate is $3,620,735. The chart below identifies the millage rate options available to the Town and the Town’s adopted final millage rate.


Millage Rate

Tax Revenue

Rollback Millage Rate

3.1184

$43,510,213

Majority Vote Maximum Millage Rate

3.4148

$47,645,804

2/3 Vote Maximum Millage Rate

3,7563

$52,410,663

Town Adopted Final Millage Rate

3.3779

$47,130,948


The majority maximum millage rate is the prior year rolled-back rate adjusted to the rolled back rate if the prior year majority vote rate had been levied. This newly calculated rolled-back rate is then adjusted by the percentage change in per capita Florida personal income to arrive at the current year majority vote rate. This year the percentage change is Florida personal income was 1.96%. The 2/3 vote maximum rate is 110% of the majority maximum rate.


image


Historic taxable value peaked in FY09 at $13.68 billion. Since FY09, the Town’s taxable value had declined by 15% through FY12. Since FY12, values have increased and in FY16, the taxable value increased by 9.74% to a new all-time high. The FY16 millage rate decreased, but due to the increase in taxable value, an additional $3,706,648 in property tax revenue was added to the budget to supplement the funding of the coastal protection program. The tax revenue trend is shown on the chart on the following page.



27


image


The Town millage rate represents 18.86% of the total tax bill. The table below illustrates the difference between the FY15 vs. FY16 total tax bill by taxing district for a Palm Beach property owner with a taxable value of $1 million.


Impact on owner of $1 million property



Taxing Authority

FY15

Millage Rate

FY16

Millage Rate

FY16 Tax Change Per

$1 Million Value $1 million Value % Change

% of Total Tax Bill


Palm Beach


3.4058


3.3779


$3,378


-$27.90


-0.82%


18.86%

Palm Beach County

4.9729

4.9277

$4,928

-$45.20

-0.91%

27.51%

Palm Beach County School District

7.5940

7.5120

$7,512

-$82.00

-1.08%

41.93%

South Florida Water Mgmt

0.3294

0.3045

$305

-$24.90

-7.56%

1.70%

Children Services

0.6745

0.6677

$668

-$6.80

-1.01%

3.73%

Florida Inland Navigation

0.0345

0.0320

$32

-$2.50

-7.25%

0.18%

Health Care District

1.0800

1.0426

$1,043

-$37.40

-3.46%

5.82%

Everglades Construction

0.0548

0.0506

$51

-$4.20

-7.66%

0.28%

Grand Total

18.1459

17.9150

$17,915

-$230.90

-1.27%

100.00%


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


image


28

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


image


image

Property Breakdown by Number of Parcels


The Town has a total of 9,458 total parcels. Residential units total 8,905 or 94% of all parcels. Condominiums and Cooperatives represent the greatest percentage of total parcels in the Town at 68% or 6,386 parcels. Single family residential parcels are the second largest group at 2,283 parcels or 24% of the total. Commercial and industrial parcels total 387 and the balance is made up of multi- family, government, institutional and miscellaneous parcels. Properties with a Homestead exemption represent 35% of the total parcels in the Town.


image

Property Breakdown by Taxable Value


The taxable value of parcels in the Town totals

$14.7 billion. Residential parcels represent 91% of the total value of parcels and single family residential represents 64% of the total value. Commercial and industrial properties represent 8% of the total value of parcels.

Properties with a homestead exemption represent $5.9 billion (40%) of the total taxable value.


29

Historical Building Permit Detail


Beginning in 2008, building permit revenue declined due to the downturn in the economy. For the past five years, permit revenue and permit activity increased. A total of 9,959 permits were issued in FY15, compared to 7,727 for FY10. Total permit valuation for FY15 was $326,626,671 compared to $117,361,908 for FY10.


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


image


image


We expect permit activity to continue at high levels for FY16. The improvement in permit activity and new construction has resulted in a portion of the improvement of the Town’s taxable value, with the balance an improvement in the real estate market.



30

Town History

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


image

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

several hotels in the St.

Augustine area, Flagler

extended his holdings

southward. He bought and

improved existing railways

anticipating the tremendous

potential for South Florida.

His railway was named the

Florida East Coast Railway.


Flagler’s agents soon were

buying acres of land on the

island of Palm Beach. Many

early homesteaders

found themselves very wealthy,

as orders had been given to

buy “at any price”.

Ground was broken May 1,

1893, and on February 11,

1894, the Royal Poinciana

Hotel, the largest wood structure

in the world, opened in

Palm Beach and welcomed 17

guests. A month after the

opening, the first train pulled

from the station on Loftin

Street (later used as an office

and warehouse by the Town of

Palm Beach) in West Palm

Beach on the newly built

bridge across Lake Worth to

deliver vacationing residents, some in their own private railway cars, to the new hotel. Henry Flagler built his own house in 1902, Whitehall, as a wedding present for his third wife, Mary Lily Kenan. Whitehall is now the Henry Morrison Flagler Museum and is open to the public.


Flagler continued to develop the Royal Poinciana Hotel property and built a second hotel, the Palm Beach Inn, on the beachfront portion of the Royal Poinciana’s property. When the Palm Beach Inn burned in 1903 the first Breakers Hotel was built. Destroyed by a fire in


31

1925, it was rebuilt as the splendid hotel it is today. The Breakers is listed in the National Register of Historic Places.


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


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

Mizner’s era had begun and was to continue along the southeast Florida coast through the 1920's.


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


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


Also included in the plan was the following statement:


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


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


The Town of Palm Beach has 7,720 registered voters in 2015 with approximately 8,168 full time residents. The population swells to approximately 25,000 during “season” which is from November to April. Residents and visitors enjoy the very best in dining, shopping, and luxurious surroundings. Worth Avenue shops attract visitors worldwide.


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



32


Financial Policies


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


General Policies




Accounting, Auditing and Reporting Policies

image



36



37

Budget Preparation Process


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


Financial Reporting Entity


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


Included within the reporting entity:

The Town of Palm Beach Employees' Retirement System


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


Excluded from the reporting entity:

East Central Regional Wastewater Treatment Facility ("Facility")


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


38

Basis of Accounting


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


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


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

Revenues collected in advance of the year to which they apply are recorded as deferred revenues.


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


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


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


Budget Basis


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


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


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


39

Budgets and Budgetary Requirements


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



Truth in Millage (Trim)


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


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



40


Proprietary Funds


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


Enterprise Funds

image


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



47

Fiduciary Funds


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


Pension Trust Funds

image


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



Non-Expendable and Expendable Trust Funds

image


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


Agency Funds

image


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



48


image

Fund Budget Overview FY2016


Fund Budget Overview


image


49

image

FY 16 Budget Summary by Fund Type, Revenues and Expenditures


Debt

Capital

Internal

Trust &

General

Service

Projects

Enterprise

Service

Agency

Totals


Revenues

Ad Valorem Taxes

$47,131,000

$0

$0

$0

$0

$0

$47,131,000

Non Ad Valorem Taxes

8,005,000

0

0

0

0

0

8,005,000

Licenses and Permits

7,103,320

0

0

0

0

0

7,103,320

Intergovernmental

1,135,537

0

4,530,000

0

0

0

5,665,537

Charges for Services

3,867,388

0

0

5,693,000

6,908,519

0

16,468,907

Fines and Forfeitures

1,284,000

0

0

0

0

0

1,284,000

Contributions

0

0

0

0

0

10,023,424

10,023,424

Interest Earnings

700,000

1,500

169,603

6,400

159,866

16,527,549

17,564,918

Miscellaneous

323,500

0

10,000

0

45,000

95,000

473,500

Special Assessments

0

777,000

233,710

0

0

0

1,010,710

Interfund Transfers

785,000

7,200,725

9,368,393

0

1,934,595

1,180,000

20,468,713

Subtotal

70,334,745

7,979,225

14,311,706

5,699,400

9,047,980

27,825,973

135,199,029

Appropriations from

Fund Balance

1,579,586

14,000

24,826,470

257,255

4,564,607

0

31,241,918

Total Revenues

$71,914,331

$7,993,225

$39,138,176

$5,956,655

$13,612,587

$27,825,973

$166,440,947


Expenditures

Salaries and Wages

$24,950,912

$0

$108,973

$1,354,113

$175,011

$114,073

$26,703,082

Employee Benefits

14,227,724

0

45,365

589,342

5,243,386

2,075,629

22,181,446

Contractual

8,931,123

0

255,910

1,400,150

1,621,270

18,994,772

31,203,225

Commodities

1,774,239

0

2,400

341,550

5,062

300

2,123,551

Capital Outlay

237,274

0

35,939,533

163,100

1,354,100

0

37,694,007

Depreciation

2,107,319

0

0

834,000

2,758

0

2,944,077

Debt Service

0

7,976,725

0

204,100

0

0

8,180,825

Interfund Transfers

18,425,277

0

1,054,336

785,000

1,211,000

0

21,475,613

Other

1,260,463

16,500

208,000

285,300

4,000,000

0

5,770,263

Subtotal

71,914,331

7,993,225

37,614,517

5,956,655

13,612,587

21,184,774

158,276,089

Transfer to Fund

Balance/Retained

Earnings

0

0

1,523,659

0

0

6,641,199

8,164,858

Total Expenditures

$71,914,331

$7,993,225

$39,138,176

$5,956,655

$13,612,587

$27,825,973

$166,440,947


Financial Ratios


General

Debt

Service

Capital

Projects


Enterprise

Internal

Service

Trust &

Agency


Total

Ad Valorem Taxes as

percentage of total

fund budget

65.54%

0.00%

0.00%

0.00%

0.00%

0.00%

28.32%

Ad Valorem Taxes pe

r

capita (8,170

population)

$5,769

$0

$0

$0

$0

$0

$5,769

Total expenditures per

capita (8,170

population)

$8,802

$978

$4,790

$729

$1,666

$3,406

$20,372

Personnel as a

percentage of the

total budget

34.70%

0.00%

0.28%

22.73%

1.29%

0.41%

16.04%


Capital expenditures

as percentage of tota

l

fund budget

0.33%

0.00%

91.83%

2.74%

9.95%

0.00%

22.65%

Capital expenditures

per capita (8,170

population)

$29

$0

$4,399

$20

$166

$0

$4,614


50


image

FY16 Budget by Revenue Type All Funds



Interest Earnings 10.6%

Appropriations from Fund Balance 18.9%


Interfund Transfers 12.4%

0.0%

Miscellaneous 0.3%

Contributions

6.1% Fines and Forfeitures


Ad Valorem Taxes 28.5%


Sales and Use Taxes 4.8%

Licenses and Permits 4.3%

Intergovernmental Revenue

0.8%

Charges for Services

10.0%

3.4%


image

FY16 Budget by Expenditure Classification All Funds


Commodities Capital Outlay

Contractual 18.7%

1.3%

22.6%


Depreciation 1.8%


Employee Benefits 13.3%


Personnel 16.0%


Transfer to Fund Balance/Retained Earnings

4.9%


Other 3.5%

Debt Service 4.9%

Interfund Transfers 12.9%


51



Description

Summary of Major Revenues by Fund Type FY16 Budget


FY2013 FY2014 FY2015 FY2015

Actual Actual Budget Projected


FY16 Budget

to FY2016 FY2016 FY15 Budget %

Budget % Variance of Total

General Fund

Ad Valorem Taxes

$37,473,107

$39,110,926

$43,424,300

$43,858,543

$47,131,000

8.54%

65.54%

Sales and Use Taxes

8,100,649

8,648,808

7,937,500

7,808,698

8,005,000

0.85%

11.13%

Licenses and Permits

6,959,778

7,401,315

6,835,600

8,981,274

7,103,320

3.92%

9.88%

Intergovernmental Revenue

986,853

1,056,503

1,079,750

1,114,684

1,135,537

5.17%

1.58%

Charges for Services

3,576,155

3,741,185

3,573,600

3,813,785

3,867,388

8.22%

5.38%

Fines and Forfeitures

1,530,787

1,924,183

1,210,000

1,282,000

1,284,000

6.12%

1.79%

Interest Earnings

32,425

383,727

578,694

481,516

700,000

20.96%

0.97%

Miscellaneous

573,619

664,107

221,000

145,400

323,500

46.38%

0.45%

Interfund Transfers

885,000

885,000

885,000

885,000

785,000

-11.30%

1.09%

Subtotal

60,118,373

63,815,754

65,745,444

68,370,900

70,334,745

6.98%

97.80%

Appropriations from Fund Balance

0

1,471,382

1,549,900

6,338,716

1,579,586

1.92%

2.20%

Total General Fund

$60,118,373

$65,287,136

$67,295,344

$74,709,616

$71,914,331

6.86%

100.00%

Debt Service Funds

Interest Earnings

243

72

1,500

200

1,500

0.00%

0.02%

Special Assessments

0

740,212

775,000

738,000

777,000

0.00%

9.72%

Miscellaneous

5,538

0

0

0

0

0.00%

0.00%

Interfund Transfers

4,407,800

6,624,949

7,036,813

7,036,813

7,200,725

2.33%

90.09%

Subtotal

4,413,581

7,365,233

7,813,313

7,775,013

7,979,225

2.12%

99.82%

Appropriations from Fund Balance

0

0

187,612

213,003

14,000

-92.54%

0.18%

Total Debt Service Funds

$4,413,581

$7,365,233

$8,000,925

$7,988,016

$7,993,225

-0.10%

100.00%

Capital Projects Funds

Interest Earnings

39,525

242,330

245,370

497,150

169,603

-30.88%

0.43%

Grants/Interlocal/Donations

51,126

343,894

850,000

572,000

4,530,000

432.94%

11.57%

Special Assessment Revenue

1,002,510

260,980

222,925

267,000

233,710

4.84%

0.60%

Loan Proceeds/Contributions

10,000

10,000

10,000

582,500

0

-100.00%

0.00%

Miscellaneous

116,802

14,688

0

0

10,000

0.00%

0.03%

Interfund Transfers

5,965,099

26,408,913

6,002,000

4,505,000

9,368,393

56.09%

23.94%

Subtotal

7,185,062

27,280,805

7,330,295

6,423,650

14,311,706

95.24%

36.57%

Appropriations from Fund Balance

6,627,967

0

66,552,040

33,688,587

24,826,470

-62.70%

63.43%

Total Capital Projects Funds

$13,813,029

$27,280,805

$73,882,335

$40,112,237

$39,138,176

-47.03%

100.00%

Enterprise Funds

Charges for Services

$6,373,073

$5,254,951

$5,253,400

$5,464,773

$5,693,000

8.37%

95.57%

Interest Earnings

1,840

14,615

6,400

13,900

6,400

0.00%

0.11%

Grants/Interlocal/Donations

0

0

0

0

0

0.00%

0.00%

Interfund Transfers

0

1,250,000

0

0

0

0.00%

0.00%

Miscellaneous

18,577

23,493

0

8,500

0

0.00%

0.00%

Subtotal

6,393,490

6,543,059

5,259,800

5,487,173

5,699,400

8.36%

95.68%

Appropriations from Retained Ern

gs. 0

0

453,821

41,761

257,255

-43.31%

4.32%

Total Enterprise Funds

$6,393,490

$6,543,059

$5,713,621

$5,528,934

$5,956,655

4.25%

100.00%

Internal Service Funds

Interest Earnings

-$22,993

$152,068

$121,500

$171,500

$159,866

31.58%

1.17%

Miscellaneous

$1,345,927

$550,345

$30,000

$806,000

$45,000

50.00%

0.33%

Interfund Transfers

$0

$0

$1,925,362

$0

$1,934,595

0.48%

14.21%

Charges for Services

8,656,780

8,702,436

6,649,102

8,560,264

6,908,519

3.90%

50.75%

Subtotal

9,979,714

9,404,849

8,725,964

9,537,764

9,047,980

3.69%

66.47%

Appropriations from Retained Erngs. 0

2,460,839

6,370,816

120,124

4,564,607

-28.35%

33.53%

Total Internal Service Funds $9,979,714

$11,865,688

$15,096,780

$9,657,888

$13,612,587

-9.83%

100.00%

Trust & Agency Funds

Intergovernmental Revenue

$0

$0

$0

$0

$0

0.00%

0.00%

Interest Earnings

1,760,003

1,208,970

18,550,000

7,571,500

16,527,549

-10.90%

59.40%

Gain/Loss on Investments

25,197,088

16,046,598

0

0

0

0.00%

0.00%

Charges for Services

3,160,128

0

0

0

0

0.00%

0.00%

Miscellaneous

585,086

271,413

750,000

705,000

95,000

-87.33%

0.34%

Contributions

4,720,918

14,826,471

7,470,852

15,079,053

10,023,424

34.17%

36.02%

Interfund Transfers

0

1,506,000

1,577,000

1,577,000

1,180,000

-25.17%

4.24%

Subtotal

35,423,223

33,859,452

28,347,852

24,932,553

27,825,973

-1.84%

100.00%

Appropriations from Fund Balance

0

0

0

0

0

0.00%

0.00%

Total Trust & Agency Funds

$35,423,223

$33,859,452

$28,347,852

$24,932,553

$27,825,973

-1.84%

100.00%


52

image

Summary of Major Revenues by Fund Type FY16 Budget


FY16 Budget


FY2013


FY2014


FY2015


FY2015


FY2016

to

FY15 Budget

FY2016

%

Actual

Actual

Budget

Projected

Budget

% Variance

of Total

Description


All Funds

Ad Valorem Taxes

$37,473,107

$39,110,926

$43,424,300

$43,858,543

$47,131,000

8.54%

28.32%

Sales and Use Taxes

8,100,649

8,648,808

7,937,500

7,808,698

8,005,000

0.85%

4.81%

Licenses and Permits

6,959,778

7,401,315

6,835,600

8,981,274

7,103,320

3.92%

4.27%

Intergovernmental Revenue

986,853

1,056,503

1,079,750

1,114,684

1,135,537

5.17%

0.68%

Charges for Services

21,766,136

17,698,572

15,476,102

17,838,822

16,468,907

6.42%

9.89%

Fines and Forfeitures

1,530,787

1,924,183

1,210,000

1,282,000

1,284,000

6.12%

0.77%

Special Assessment Revenue

1,002,510

1,001,192

997,925

1,005,000

1,010,710

1.28%

0.61%

Loan Proceeds/Contributions

10,000

10,000

10,000

582,500

0

-100.00%

0.00%

Contributions

4,720,918

14,826,471

7,470,852

15,079,053

10,023,424

34.17%

6.02%

Interest Earnings

1,811,043

2,001,782

19,503,464

8,735,766

17,564,918

-9.94%

10.55%

Gain/(Loss) on Investments

25,197,088

16,046,598

0

0

0

0.00%

0.00%

Miscellaneous

2,645,549

1,524,046

1,001,000

1,664,900

473,500

-52.70%

0.28%

Interfund Transfers

11,257,899

36,674,862

17,426,175

14,003,813

20,468,713

17.46%

12.30%

Grants/Interlocal/Donations

51,126

343,894

850,000

572,000

4,530,000

432.94%

2.72%

Approp. from Fund Bal/Ret Earngs

6,627,967

3,932,221

75,114,189

40,402,191

31,241,918

-58.41%

18.77%

Total All Funds

$130,141,410

$152,201,373

$198,336,857

$162,929,244

$166,440,947

-16.08%

100.00%


This table summarizes by fund type, the major revenue categories indicating category percentages of total fund revenues and percent of change from the prior year.


image

FY16 Budget by Revenue Type ‐ All Funds


Miscellaneous, 0.3%


Gain/(Loss) on Investments, 0.0%

Interest Earnings, 10.6%

Contributions, 6.0% Loan Proceeds/Contributions,

0.0%


Interfund Transfers, 12.3%


Grants/Interlocal/Donations, 2.7%


Approp. from Fund Bal/Ret Earngs, 18.8%

Special Assessment Revenue, 0.6%


Charges for Services, 9.9%


Fines and Forfeitures, 0.8%


Intergovernmental Revenue, 0.7%


Ad Valorem Taxes, 28.3%


Licenses and Permits, 4.3%

Sales and Use Taxes, 4.8%


53



Description

Summary of Expenditure Classifications by Fund Type FY16 Budget

FY16 Budget

to FY2016 FY2013 FY2014 FY2015 FY2015 FY2016 FY15 Budget of

Actual Actual Budget Projected Budget % Variance % of Total


General Fund

Salaries and Wages

$22,943,977

$23,152,234

$24,927,999

$24,248,527

$24,950,912

0.09%

34.70%

Employee Benefits

$11,105,892

$14,313,554

$13,576,525

$15,063,848

$14,227,724

4.80%

19.78%

Contractual

7,227,726

9,491,442

8,565,388

10,996,731

8,931,123

4.27%

12.42%

Commodities

1,574,948

1,633,364

1,753,846

1,754,547

1,774,239

1.16%

2.47%

Capital Outlay

62,775

219,961

59,200

68,905

237,274

300.80%

0.33%

Interfund Transfers

12,926,879

14,300,000

17,196,806

20,402,362

20,532,596

19.40%

28.55%

Other

2,259,958

2,176,581

1,215,580

2,174,696

1,260,463

3.69%

1.75%

Subtotal

58,102,155

65,287,136

67,295,344

74,709,616

71,914,331

6.86%

100.00%

Transfer to Fund Balanc

e

2,016,218

0

0

0

0

0.00%

0.00%

Total General Fund

$60,118,373

$65,287,136

$67,295,344

$74,709,616

$71,914,331

6.86%

100.00%


Debt Service Funds

Debt Service

$4,397,494

$5,842,717

$7,983,425

$7,982,456

$7,976,725

-0.08%

99.79%

Other

3,800

1,310

16,500

5,560

16,500

0.00%

0.21%

Interfund Transfers

0

0

0

0

0

0.00%

0.00%

Subtotal

4,401,294

5,844,027

7,999,925

7,988,016

7,993,225

-0.08%

100.00%

Transfer to Fund Balanc

e

12,287

1,521,206

1,000

0

0

-100.00%

0.00%

Total Debt Service Funds

$4,413,581

$7,365,233

$8,000,925

$7,988,016

$7,993,225

-0.10%

100.00%


Capital Projects Funds

Capital Outlay

$12,833,229

$12,800,866

$72,717,522

$37,716,997

$36,352,181

-50.01%

92.88%

Interfund Transfers

979,800

13,375,000

959,613

2,395,240

1,054,336

9.87%

2.69%

Other

0

0

205,000

0

208,000

0.00%

0.53%

Subtotal

13,813,029

26,175,866

73,882,135

40,112,237

37,614,517

-49.09%

96.11%

Transfer to Fund Balanc

e

0

1,104,939

200

0

1,523,659 761729.50%

3.89%

Total Capital Projects Funds

$13,813,029

$27,280,805

$73,882,335

$40,112,237

$39,138,176

-47.03%

100.00%


Enterprise Funds

Salaries and Wages

$1,223,502

$1,230,534

$1,330,642

$1,232,641

$1,354,113

1.76%

22.73%

Employee Benefits

$471,991

$535,972

$540,897

$542,098

$589,342

8.96%

9.89%

Contractual

1,084,435

1,356,680

1,296,000

1,437,300

1,400,150

8.04%

23.51%

Commodities

222,596

268,987

286,100

307,700

341,550

19.38%

5.73%

Capital Outlay

770,526

718,126

175,500

921,995

997,100

468.15%

16.74%

Debt Service

128,000

157,300

202,200

202,200

204,100

0.94%

3.43%

Interfund Transfers

885,000

885,000

1,610,182

885,000

785,000

-51.25%

13.18%

Other

1,500

2,000

272,100

0

285,300

4.85%

4.79%

Subtotal

4,787,550

5,154,599

5,713,621

5,528,934

5,956,655

4.25%

100.00%

Transfer to Retained Earnings

1,605,940

1,388,460

0

0

0

0.00%

0.00%

Total Enterprise Funds

$6,393,490

$6,543,059

$5,713,621

$5,528,934

$5,956,655

4.25%

100.00%


Internal Service Funds

Salaries and Wages

$139,508

$142,962

$144,961

$144,961

$175,011

20.73%

1.29%

Employee Benefits

4,553,244

4,112,830

5,229,164

4,854,414

5,243,386

0.27%

38.52%

Contractual

1,557,632

1,246,057

1,631,184

1,625,532

1,621,270

-0.61%

11.91%

Commodities

3,916

3,526

4,855

4,855

5,062

4.26%

0.04%

Capital Outlay

1,646,442

1,501,400

1,585,630

1,592,499

1,356,858

-14.43%

9.97%

Interfund Transfers

0

4,858,913

2,500,986

1,435,627

1,211,000

-51.58%

8.90%

Other

17,881

0

4,000,000

0

4,000,000

0.00%

29.38%

Subtotal

7,918,623

11,865,688

15,096,780

9,657,888

13,612,587

-9.83%

100.00%

Transfer to Retained Earnings

2,061,091

0

0

0

0

0.00%

0.00%

Total Internal Sevice Funds

$9,979,714

$11,865,688

$15,096,780

$9,657,888

$13,612,587

-9.83%

100.00%


Trust & Agency Funds

Contractual

$20,376,452

$17,873,520

$20,407,369

$18,994,898

$21,184,774

3.81%

76.13%

Transfer to Fund Balanc

e

15,046,771

15,985,932

7,940,483

5,937,655

6,641,199

-16.36%

23.87%

Total Trust & Agency Fu

nds

$35,423,223

$33,859,452

$28,347,852

$24,932,553

$27,825,973

-1.84%

100.00%



54


Summary of Expenditure Classifications by Fund Type FY16 Budget

FY16 Budget

to FY2016 FY2013 FY2014 FY2015 FY2015 FY2016 FY15 Budget of

Description Actual Actual Budget Projected Budget % Variance % of Total


Total: All Funds

Salaries and Wages

$24,306,987

$24,525,730

$26,403,602

$25,626,129

$26,480,036

0.29%

15.91%

Employee Benefits

$16,131,127

$18,962,356

$19,346,586

$20,460,360

$20,060,452

3.69%

12.05%

Contractual

30,246,245

29,967,699

31,899,941

33,054,461

33,137,317

3.88%

19.91%

Commodities

1,801,460

1,905,877

2,044,801

2,067,102

2,120,851

3.72%

1.27%

Capital Outlay

15,312,972

15,240,353

74,537,852

40,300,396

38,943,413

-47.75%

23.40%

Debt Service

4,525,494

6,000,017

8,185,625

8,184,656

8,180,825

-0.06%

4.92%

Interfund Transfers

14,791,679

33,418,913

22,267,587

25,118,229

23,582,932

5.91%

14.17%

Transfer to Fund Bal/Ret Earnings

20,742,307

20,000,537

7,941,683

5,937,655

8,164,858

2.81%

4.91%

Other

2,283,139

2,179,891

5,709,180

2,180,256

5,770,263

1.07%

3.47%

Subtotal All Funds

$130,141,410

$152,201,373

$198,336,857

$162,929,244

$166,440,947

-16.08%

100.00%


image

FY16 Budget by Expenditure Classification All Funds


Transfer to Fund Bal/Ret Earnings

4.9% Other

3.5%

Interfund Transfers 14.2%

Debt Service 4.9%


Salaries and Wages 15.9%


Employee Benefits 12.1%

Capital Outlay

23.4%

Contractual

19.9%


Commodities 1.3%


55


Official-colored-seal.jpg


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56


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


image

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 FY15, the Town Council approved a budget amendment transferring $6,600,000 from the unassigned fund balance to the Coastal Protection Fund. Twenty- five percent of the FY16 General Fund operating

budget (General Fund budget less coastal transfer) is $15,974,778. The FY15 estimated ending fund balance is $19,500,000. The unassigned fund balance exceeds the minimum requirement by

$3,525,222.


The General Fund Undesignated Fund Balance has consistently exceeded the required minimum level of 25%. The chart details the General Fund Undesignated Fund Balance and the percent of budgeted expenditures the balance represents. For the FY16 budget, a transfer of $944,686 from fund balance will be used to fund the contingency reserve as directed by policy.


Reserves - Risk Fund


image

The total reserve balance for the Risk Fund was

$7,297,409 as of September 30, 2014. 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.


57

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.


image

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 FY14, the net asset balance for the Recreation Enterprise Fund (REF) was $4,645,148.

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


At the end of FY14, $2,715,680 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.


The Par 3 Golf Course charges an additional $2 per round to fund a maintenance and improvement reserve. At the end of FY14, the balance is $279,252. 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. This reserve will be funded beginning with the FY15 year-end net profits.


In FY10, a maintenance and improvement fee was implemented for the Tennis program. This reserve at the end of FY14 is $38,459 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 FY14 is $472,319.


58


Equipment Replacement Fund


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.


image

The balance in the Equipment Replacement Fund for year-end FY14 is $12,232,932. In FY13, the Town Council approved the use of a portion of this reserve for internal financing for small underground utility projects financed by special assessments. To date, a total of

$1,907,019 has been used for these projects.


For FY16, income including the depreciation transfer will total $2,187,319 and expenditures for capital equipment are budgeted at

$2,455,100.


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, 2014, was

$3,456,532. The FY15 appropriation for the pay-out of eligible accrued vacation, sick and compensatory time from this reserve is $640,900 and the FY16 appropriation will be $634,500.


Health Insurance Reserve


image

The balance of the reserve in the Health Fund at the end FY14 is $5,025,134. 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.


59


Capital Improvement Fund


image

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 FY16 appropriation was

increased to $1,030,000 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 $27,628,798 as of September 30, 2014. The actuarially determined transfer from the General Fund for the OPEB liability for FY16 is

$1,180,000. 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 FY14 were $216,001,372.


60

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 2012 through 2016.

Contingency Reserves FY2012 – FY2016

Contingency

2012

2013

2014

2015

2016

General Fund Budget

807,397

843,000

860,000

909,000

944,686

General Fund Actual

806,988

556,668

293,800

246,361

-0-

CIP Budget

181,000

201,000

205,000

205,000

208,000

CIP Actual

94,000

-0-

-0-

-0-

-0-

ERF Budget

500,000

500,000

500,000

500,000

500,000

ERF Actual

-0-

156,528

136,869

-0-

-0-

Risk Budget

500,000

500,000

500,000

500,000

500,000

Risk Actual

50,000

-0-

-0-

-0-

-0-

Health Budget

500,000

500,000

500,000

500,000

500,000

Health Actual

-0-

-0-

-0-

-0-

-0-

Recreation Budget

155,000

235,600

249,220

272,100

285,300

Recreation Actual

137,000

35,000

-0-

39,000

-0-


Unassigned Net Position


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 balances for fiscal year ending FY10 through FY14.



61

Reserve Balances Fiscal Years 2010 – 2015 Est.


Fund

2010

2011

2012

2013

2014

2015 Est.

General Fund

18,394,714

18,155,941

21,424,261

20,043,760

22,298,680

19,500,000

Compensated Absence (GF)


3,065,810


3,621,915


3,315,135


3,390,226


3,456,532


3,300,000

Equipment Replacement Fund


11,667,524


13,672,222


14,870,188


12,625,048


12,232,932


11,175,000

Recreation Enterprise Fund


294,764


413,966


707,381


486,466


1,025,665


1,050,000

Recreation ERF

426,749

458,002

397,132

472,319

472,319

500,000

Dock Replacement

2,084,181

2,240,125

2,395,723

2,551,321

2,715,680

2,874,680

Par 3 M&I Reserve

50,872

108,722

162,138

212,375

279,252

350,000

Tennis M&I Reserve

8,446

16,418

23,867

31,075

38,459

46,000

Health Fund

2,565,197

2,683,896

3,234,334

4,025,042

5,025,134

5,454,176

Risk Fund

6,669,596

6,863,675

7,990,553

6,625,018

7,297,409

7.767.408

Capital Improvement Fund


8,039,809


5,393,924


5,623,928


4,990,855


5,670,416


5,635,416

Health - OPEB Trust


17,524,179


18,173,086


20,942,253


24,814,790


27,628,798


29,045,190

Pension Fund

174,544,804

170,564,741

187,286,530

198,460,764

216,001,372

213,011,073

Total

245,336,645

242,366,683

268,373,423

278,729,059

304,142,648

$299,238,944


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62


Capital Expenditures


The Town of Palm Beach defines a “capital expenditure as the cost(s) associated with the acquisition of land, improvements to land, buildings, vehicles, machinery, equipment, works of art, infrastructure and other tangible or intangible assets that are used in operations and that have an initial useful life extending beyond a single reporting period. Capital expenditures with the following minimum dollar threshold are recognized as depreciable as recommended by GFOA Best Practices:



Capital expenditures are further categorized as “routine” and “non-routine.” Routine capital expenditures represent the cost of items that are purchased on an annual basis such as computer hardware, vehicles and various other types of equipment. Non routine capital expenditures represent the cost of items such as capital improvements projects that are not incurred on a regular basis.


The Town defines the term “capital improvement” as a major repair, renovation or replacement of infrastructure which has an estimated cost of $50,000 or greater and extends the useful life by at least five years or adds capacity/square footage to an existing facility. Capital improvements are accounted for in the Capital Funds section of the budget.


The purpose of the capital budget is to promote advanced planning by department directors and serves as a fiscal planning tool to forecast the demands on revenues and future borrowing needs. The capital improvements program is reviewed and updated annually.

During the budget preparation process, departments provide the Public Works Director with updates on current projects, the projects scheduled for the next fiscal year and any changes that are requested from the previous five year plan. The plan is then presented to the Budget Review Committee for review prior to approval by Town Council. These changes include requests for new projects or modifications to projects already forecasted in the plan. Departments are required to give a description of the project, estimated costs and justification, funding resources and a statement of impact on the Town’s annual operating budget.


63


FY2016 Town‐wide Capital Expenditures



Department/ Description


General Fund


Equipment Replacement Fund


Capital Funds


Recreation Fund


Total

Information Systems

$302,246

$229,500

$0

$0

$531,746

Annual Depreciation

292,246

0

0

0

292,246

Major Computer Equip (>$1,500)

10,000

229,500

0

0

239,500

Human Resources

677

0

0

0

677

Annual Depreciation

677

0

0

0

677

Finance

4,705

0

0

0

4,705

Annual Depreciation

4,705

0

0

0

4,705

Planning/Zoning/Building

43,249

25,000

0

0

68,249

Annual Depreciation

37,649

0

0

0

37,649

(2) Scanners

5,600

0

0

0

5,600

Automobile

0

25,000

0

0

25,000

Fire‐Rescue

715,705

319,000

0

0

1,034,705

Annual Depreciation

597,575

0

0

0

597,575

Fire Rescue Truck

0

319,000

0

0

319,000

Opticom Emergency Response System

95,000

0

0

0

95,000

Grant Reimbursable Equipment

23,130

0

0

0

23,130

Police

620,832

244,000

0

0

864,832

Annual Depreciation

528,032

0

0

0

528,032

(3) Star Chase Units

16,800

0

0

0

16,800

Opticom Emergency Response System

76,000

0

0

0

76,000

(3) Dispatch Radio Consoles

0

80,500

0

0

80,500

(3) Police Supervisor Vehicles

0

88,000

0

0

88,000

Ford Escape

0

23,000

0

0

23,000

Camera and Security Equipment

0

25,000

0

0

25,000

Unmarked Police Vehicle

0

24,000

0

0

24,000

Speed Laser/Radar Unit

0

3,500

0

0

3,500

Public Works

659,935

536,600

38,815,003

0

40,011,538

Annual Depreciation

646,435

0

0

0

646,435

Ford F150 Truck

0

22,100

0

0

22,100

Transfer Trailer

0

267,000

0

0

267,000

Kawasaki Mule

0

8,800

0

0

8,800

Int’l Truck RS Crane

0

178,500

0

0

178,500

Isuzu NP154 Truck

0

60,200

0

0

60,200

Transmission Fluid Exchanger

3,500

0

0

0

3,500

Video Detection System

4,000

0

0

0

4,000

Tire Balancer

6,000

0

0

0

6,000

Pay‐as‐you‐go Projects

0

0

7,152,270

0

7,152,270

Coastal Projects

0

0

11,418,823

0

11,418,823

Worth Avenue Assessment District

0

0

243,910

0

243,910

2013 Accelerated Projects

0

0

20,000,000

0

20,000,000

Recreation Department

0

0

0

997,100

997,100

Annual Depreciation

0

0

0

734,000

734,000

Par 3 – Golf Carts

0

0

0

89,700

89,700

Par 3 – Golf Cart, Driving Range

0

0

0

7,700

7,700

Par 3 – Golf Ball Dispenser

0

0

0

5,700

5,700

Par 3 – Greens Roller

0

0

0

12,000

12,000

Par 3 – Tractor with Bucket and Backhoe

0

0

0

27,000

27,000

Par 3 – Utility Vehicle

0

0

0

21,000

21,000

Town Docks Repairs

0

0

0

100,000

100,000

Total Capital Expenditures

$2,347,349

$1,354,100

$38,815,003

$997,100

$43,513,552


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64


General Fund Revenue Expenditure Comparison FY2016


image

General Fund Revenues and Expenditures Budget Comparison

Fiscal Years 2015-2016


Budget

FY2015

Budget

FY2016

FY15 vs. FY16

$ Difference

FY15 vs. FY16

% Change


Revenues


$43,424,300


$47,131,000


$3,706,700


8.5%

Ad Valorem Taxes

Non Ad Valorem Taxes

7,937,500

8,005,000

$67,500

0.9%

Licenses & Permits

6,835,600

7,103,320

$267,720

3.9%

Intergovernmental

1,079,750

1,135,537

$55,787

5.2%

Charges for Services

3,573,600

3,867,388

$293,788

8.2%

Fines and Forfeitures

1,210,000

1,284,000

$74,000

6.1%

Investment Earnings

578,694

700,000

$121,306

21.0%

Miscellaneous Revenues

221,000

323,500

$102,500

46.4%

Interfund Transfers

885,000

785,000

-$100,000

-11.3%

Transfer from CIP

0

0

$0

100.0%

Transfer From Fund Balance

1,549,900

1,579,586

$29,686

1.9%

Total Revenues

$67,295,344

$71,914,331

$4,618,987

6.9%

Expenditures


$95,600


$95,600


$0


0.0%

Department

Legislative

General Government

833,100

807,300

-$25,800

-3.1%

Town Manager

826,728

769,306

-$57,422

-6.9%

Advice and Litigation

529,812

550,000

$20,188

3.8%

Human Resources

835,408

851,243

$15,835

1.9%

Information Systems

2,210,216

2,320,819

$110,603

5.0%

Finance

1,929,228

2,028,839

$99,611

5.2%

Planning/Building/Zoning

3,862,035

4,050,642

$188,607

4.9%

Library

306,580

315,777

$9,197

3.0%

Fire-Rescue

11,486,486

11,743,196

$256,710

2.2%

Police

13,688,986

14,198,001

$509,015

3.7%

Emergency Management

47,000

46,300

-$700

-1.5%

Public Works

14,355,803

14,767,345

$411,542

2.9%

Contingency

909,000

944,686

$35,686

3.9%

Transfer to Other Funds

15,379,362

18,425,277

$3,045,915

19.8%

Total Expenditures

$67,295,344

$71,914,331

$4,618,987

6.9%


Revenues Over/(Under) Expenditures

$0

$0

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65


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66


Revenues by Type


image

Ad Valorem Taxes

$47,131,000 65.5%


General Use Tax 5,845,000

8.1%


Licenses/Permits 9,320,320

13.0%


Use of Fund Balance 1,579,586

2.2%


Miscellaneous 1,051,600

1.5%


Interest 700,000

1.0%


Fines and Forfeitures 1,284,000

1.8%

Intergovernmental

1,135,437

1.6%


Charges for Services 3,867,388

5.4%


Ad Valorem Taxes

$ 47,131,000

General Use Tax

5,845,000

Licenses/Permits

9,320,320

Intergovernmental

1,135,437

Charges for Services

3,867,388

Fines and Forfeitures

1,284,000

Interest

700,000

Miscellaneous

1,051,600

Use of Fund Balance

1,579,586

$ 71,914,331



67


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image

Acct # Title 2013 Actual 2014 Actual

311.000 Ad Valorem Taxes


2015

Budget


2015

Projected


2016

Budget


%

Variance

% of

Total Budget

311.100 Current Ad Valorem Taxes 37,376,601 39,080,698 43,424,300 43,858,543 47,131,000 8.54% 65.54%

311.200 Back Taxes 96,506 30,228 - - - 0.00% 0.00%


37,473,107

39,110,926

43,424,300

43,858,543

47,131,000

8.54%

65.54%

312.000

Sales, Use and Fuel Taxes

312.410

1-6 Cents Local Opt Fuel Tax

203,961

210,104

210,000

210,000

220,000

4.76%

0.31%

312.420

1-5 Cents Local Opt Fuel Tax

95,120

100,186

100,000

100,000

105,000

5.00%

0.15%

299,081

310,290

310,000

310,000

325,000

4.84%

0.45%

314.000

Utility Services Taxes

314.100

Electricity Utility

2,362,068

2,568,843

2,550,000

2,457,516

2,550,000

0.00%

3.55%

314.200

Simplified Telecom Tax

1,149,952

1,030,492

1,200,000

1,092,087

1,100,000

-8.33%

1.53%

314.300

Water Utility

1,336,302

1,616,381

1,450,000

1,594,158

1,600,000

10.34%

2.22%

314.400

Gas Utility

246,874

238,984

260,000

312,350

260,000

0.00%

0.36%

314.800

Propane Utility

3,519

8,567

7,500

11,028

10,000

33.33%

0.01%

5,098,715

5,463,267

5,467,500

5,467,139

5,520,000

0.96%

7.68%

316.000

Business Tax Receipts

316.000

Business Tax Receipts

633,552

640,363

640,500

630,000

671,820

4.89%

0.93%

316.100

Business Tax Receipt Penalties

33,236

62,348

25,000

25,000

25,000

0.00%

0.03%

666,788

702,711

665,500

655,000

696,820

4.71%

0.97%

322.000

Building Permits

322.100

Building

4,309,754

4,824,353

4,100,000

5,581,495

4,100,000

0.00%

5.70%

322.200

Electrical

437,172

414,267

375,000

458,732

400,000

6.67%

0.56%

322.300

Plumbing

256,504

255,943

200,000

323,072

250,000

25.00%

0.35%

322.400

Permit Processing

31,550

45,250

30,000

44,550

30,000

0.00%

0.04%

322.410

Permit Penalty

60,898

18,836

25,000

116,882

35,000

40.00%

0.05%

322.500

Except/Var. App.

161,350

241,533

155,000

157,066

160,000

3.23%

0.22%

322.510

Consultants Fees

4,633

8,740

5,000

-

-

-100.00%

0.00%

322.520

Special Plan Review Fee

412,700

338,350

275,000

399,150

325,000

18.18%

0.45%