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TOWN OF PALM BEACH

MEMORANDUM



To: Mayor and Town Council From: Peter B. Elwell, Town Manager Date: July 3, 2014

Subject: Proposed FY2015 Budget


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The proposed FY15 budget represents staff’s continued efforts to operate Town government in the most cost effective manner. We started with the April 2014 Long Term Financial Plan (LTFP) forecast for FY15 as a baseline and then departments identified over a million dollars of additional savings ($1,158,287), while maintaining all current levels of service and proposing strategic enhancements to address important needs. The proposed budget contains an increase in property taxes of $4,776,600 to fund the annual estimated costs for the 10-year Coastal Protection Program that was unanimously approved by the Town Council on October 8, 2013. All Town functions other than the coastal program can be funded with exactly the same amount of property taxes as in FY14.


Overall, the proposed budget reflects an increase of 2.89% over FY14. The operating budget without the coastal transfer reflects an “apples to apples” increase of 2.14% over FY14. The LTFP estimated a 4.7% increase, including the coastal funding.


This proposed budget document includes revenue and expenditure summaries, department program detail, and other funds budgets (including the capital project balances, budget, and 5-year plan), as well as a Resolution for the adoption of the tentative FY15 millage rate.


FY15 Townwide Budget Priorities


At the April 8, 2014, Town Council meeting, the Town Council adopted the Townwide budget priorities for FY15. The 5 budget priorities adopted are as follows:


1. Adopt annual operating expenditures that would result in no millage rate increase if ad valorem taxes were not increasing to fund coastal protection and the ACIP debt service. Adopting this proposed budget will achieve this goal.


  1. Adopt a millage rate sufficient to fund the annual coastal protection plan

    requirements and the additional debt service obligations for the ACIP Phase 2.

    Adopting this proposed budget will achieve this goal.


  2. Look for ways to offset Coastal Protection millage rate increase. There is very limited opportunity to achieve this goal without negatively impacting the level or quality of Town services to the community. Instead of proposing a budget that is symbolically (but not materially) lower, I am making several recommendations for strategic re-investment in certain Town functions. Those are explicitly identified in this proposed budget. If Town Council decides those items are not sufficiently needed or desirable, they present an opportunity to offset a small amount of the Coastal Protection millage rate increase.


  3. Continue to aggressively monitor the Port Expansion, with all governmental agencies, protecting against all of the long term impacts to the island. This is ongoing.


  4. Continue to aggressively monitor FDOT’s Flagler Memorial Bridge Project and implement coordinated actions with other governmental authorities (State, County, City of West Palm Beach) to mitigate impacts of any short-term or long-term complete closure of the bridge. This is ongoing.


Maintaining Fiscal Sustainability


Since FY08, the Town’s elected officials and staff members have worked diligently to reduce costs and improve efficiencies wherever possible. The proposed FY15 General Fund budget is still below ($40,256) the FY09 peak, even after the transfer to coastal protection. In the “apples to apples” comparison of the operating budget, excluding coastal transfers, proposed expenditures for FY15 are $2,817,256 (4.31%) less than in the FY09 budget.


The tables on the following page compare the FY09 Budget to the proposed FY15 Budget.



Revenue


FY2009


FY2015

FY09 vs. FY15

Difference

%

Change

Ad Valorem Taxes

$42,543,000

$43,424,300

$881,300

2.07%

Non Ad Valorem Taxes

7,043,000

7,937,500

894,500

12.70%

Licenses & Permits

5,612,900

6,835,600

1,222,700

21.78%

Intergovernmental

1,261,400

1,079,750

(181,650)

-14.40%

Charges for Services

3,158,400

3,573,600

415,200

13.15%

Fines and Forfeitures

1,521,200

1,210,000

(311,200)

-20.46%

Investment Earnings

1,201,300

578,694

(622,606)

-51.83%

Miscellaneous

309,300

221,000

(88,300)

-28.55%

Interfund Transfers

550,000

885,000

335.000

60.91%

Transfers–Contingency/Compensated Absences

2,135,100

1,549,900

(585,200)

-27.41%

Total Revenue Budget

65,335,600

67,295,344

1,959,744

3.00%

Fund Balance Transfer - Coastal Protection

2,000,000

0

(2,000,000)

-100.00%

Total Revenues

$67,335,600

$67,295,344

($40,256)

-.06%



Expenditure Category


FY2009


FY2015

FY09 vs. FY15

Difference

%

Change

Salary and Wages

$28,624,800

$24,927,999

($3,696,801)

-12.91%

Retirement Benefits

6,649,700

6,682,615

32,915

0.49%

Other Employee Benefits

9,166,730

8,470,910

(695,820)

-7.59%

Contractual

7,588,890

8,565,388

976,498

12.87%

Commodities

1,698,390

1,753,846

55,456

3.27%

Capital Outlay

2,804,666

1,876,644

(928,022)

-33.09%

Other

8,802,424

10,240,942

1,438,518

16.34%

Total Operating Expenditures

$65,335,600

$62,518,344

($2,817,256)

-4.31%

Coastal Transfer

2,000,000

4,777,000

2,777,000

138.85%

Total General Fund Budget

$67,335,600

$67,295,344

($40,256)

-0.06%


The combined impact of expenditure reductions and revenue increases since 2009 has significantly improved the Town’s long term financial forecasts. The 2009 Long Term Financial Plan (LTFP) showed deficits beginning in FY12 and increasing dramatically over time. A comparison of the current forecast updated with the FY15 proposed budget versus the 2009 and 2014 LTFP forecasts are presented on the following page. The FY15 budget forecast shows mostly surpluses and one small manageable deficit through FY20.


LTFP Forecast as of April 2009


FY15


FY16


FY17


FY18


FY19


FY20

Revenues

73,565,312

75,625,541

77,746,505

79,930,774

82,179,515

84,495,429

Expenditures

81,876,195

86,140,002

90,562,822

95,221,633

100,114,031

104,748,413

Surplus/(Deficit)

(8,310,883)

(10,514,460)

(12,816,317)

(15,290,859)

(17,934,516)

(20,252,980)


LTFP Forecast as of April 2014


FY15


FY16


FY17


FY18


FY19


FY20

Revenues

68,469,428

70,480,514

72,417,934

74,335,286

76,492,907

78,563,251

Expenditures

68,453,631

70,358,583

72,864,754

74,143,757

76,417,887

79,079,514

Surplus/(Deficit)

15,797

121,931

(446,822)

191,528

(1,924,980)

(516,263)


LTFP Forecast FY15 Budget


FY15


FY16


FY17


FY18


FY19


FY20

Revenues

67,295,344

69,191,044

71,137,950

73,016,935

75,132,719

77,161,163

Expenditures

67,295,344

69,147,454

71,214,208

72,385,570

74,498,793

76,907,810

Surplus/(Deficit)

0

43,590

(76,258)

631,364

633,926

253,353


Status of FY2014 Budget


On a monthly basis we have been reporting the status of the FY14 budget in detail. As shown in the May 31, 2014, Monthly Financial Report, most revenue sources are above FY13 levels and are anticipated to end the year slightly above the budget standard.


Expenditures for most departments are less than the budget standard through May. Total General Fund expenditures will end the year less than the budget standard unless Palm Beach is impacted by a storm event before September 30, 2014. Overall, we expect to end the year with a small surplus.


GENERAL FUND


FY2015 Budget Highlights


The FY15 budget represents excellent work by all Town departments. As mentioned above, the proposed expenditure budget is $1,158,287 below the April 2014 Long Term Financial Plan forecast. Identifying these additional savings enabled staff to achieve Town Council’s goal of a proposed budget which could be funded with the same amount of property taxes as in FY14 for all purposes except the Coastal Protection Program tax increase.


Revenues

In the General Fund, total revenues are expected to increase by $1,888,851 (2.89%) from the adopted FY14 budget. The changes by revenue type are shown on the table on the following page.



Revenue


FY2014


FY2015

FY14 vs. FY15

Difference

% Change

Ad Valor

em Taxes

$38,647,700

$43,424,300

$4,776,600

12.36%

Non Ad alorem Taxes

7,367,500

7,937,500

570,000

7.74%

Licenses & Permits

6,588,200

6,835,600

247,400

3.76%

Intergovernmental

1,052,000

1,079,750

27,750

2.64%

Charges for Services

3,552,275

3,573,600

21,325

0.60%

Fines and Forfeitures

1,181,000

1,210,000

29,000

2.46%

Investment Earnings

425,373

578,694

153,321

36.04%

Miscellaneous

247,845

221,000

(26,845)

-10.83%

Interfund Transfers

885,000

885,000

0

0.00%

Transfers For Contin ency and Compensated Absences

1,459,600

1,549,900

90,300

6.19%

Total Revenue Budget

61,406,493

67,295,344

5,888,851

9.59%

Transfer from “Excess” Fund Balance For Coastal Protection

4,000,000

0

(4,000,000)

Total Revenues and Fund Balance Transfer

$65,406,493

$67,295,344

$1,888,851

2.89%


g

Ad Valorem Revenue

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The LTFP called for property taxes to increase by 15.81% from FY14 to FY15 in order to fund the 10-year coastal protection plan and operating cost increases. The proposed FY15 budget contains an increase in property tax revenues of 12.36% sufficient to cover the coastal

protection fund transfer only. We

were able to absorb all operating cost increases with a combination of

non-ad valorem revenue increases

and reduced costs elsewhere in the budget. The Town Council voted unanimously on October 8, 2013 to use ad valorem taxes to pay for the Town’s 10-year Coastal Protection plan. The total increase in tax revenue necessary to begin funding the 10-year plan is

$4,776,600. Because of a 7.53% increase in taxable value, this 12.36% increase in taxes will require a millage rate increase of 4.9%. The millage rate comparisons for FY15 are shown in the chart on the following page:


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Taxable Value

$13,421,075,355


FY15

Proposed

Rolled-Back Millage

Millage Rate Tax Revenue

3.4058

$43,424,300

3.0282

$38,609,615

d

Ad Valorem Tax

E

xamples for Property Valued

a

t $1 Million


Homestea Property


Homestead Value Increased by 1.5%


$1,015,000


$1,015,000

Homestead Exemption

$(50,000)

$(50,000)

Adjusted Taxable Value

$965,000

$965,000

Town Taxes

$3,287

$2,922

Increase over FY14

$203

$(162)

Property w/o Homestead Exemption

roperty Value Increas d by 7.53

$1,075,326

$1,075,326

own Taxes

$3,662

$3,491

Increase over FY14

$415

$244


P

T

e

%

Non Ad Valorem Revenue

Total non ad valorem revenues (excluding transfers of fund balance) are anticipated to increase by $1,112,251 from the FY14 revenue budget. The differences by revenue type are described in detail, as follows:


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$570,000 (7.74%), due to

increases in utility tax and franchise fee revenue based upon better than anticipated revenue collections in FY14 and anticipated revenue from the renegotiated gas franchise agreement with FPUC.


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Fund Balance


As of September 30, 2013, the Town’s unassigned General Fund balance was

$20,043,760. Town policy requires that the General Fund maintain an unassigned fund balance of 25% of budgeted operating expenditures (General Fund budget less coastal

transfer). This requires a minimum unassigned fund balance of $15,629,586 for the FY15 budget. Therefore, the Town’s unassigned General Fund balance is $4,414,174 above the policy required minimum for FY15. The proposed budget includes a transfer of

$1,549,900 from fund balance reserves to fund the following items: contingency reserve ($909,000) and compensated absence payouts ($640,900). The compensated absence payouts will come from the compensated absence reserve. The contingency transfer will come from the Town’s unassigned General Fund balance.


Personnel Complement


The total proposed personnel complement (for all funds Townwide) for FY15 is 359.68 full-time equivalent personnel (FTEP), which is an increase of 2.58 FTEP from the adopted FY14 budget. This includes the following position changes: Increase of 2 Information Systems analysts, 1 combination plan examiner, and 2 full-time telecommunicators; upgrade of a Human Resources position and a Recreation Enterprise Fund position from .75 FTE to full-time; elimination of 2 part-time telecommunicators and an office assistant position in the Police Department; and reduction in temporary and part-time personnel in the Recreation Department. The Recreation Enterprise Fund numbers for FY13 and FY14 have been modified from prior budget documents to correct for the exclusion of temporary employees from the personnel complement report for those years. A chart of the FTEP by department is shown below.


Department/Fund

FY11

FY12

FY13

FY14

FY15

Town Manager

5.00

5.10

5.10

5.10

5.10

Information Systems

6.00

6.00

6.00

6.00

8.00

Human Resources

4.57

4.52

4.38

4.38

4.63

Finance

17.45

17.95

17.64

18.14

18.14

Planning, Building & Zoning

27.25

26.75

26.25

26.25

27.25

Fire-Rescue

86.40

82.90

79.90

75.90

75.90

Police

102.85

103.85

104.35

103.35

103.35

Public Works

86.35

86.85

88.02

88.04

88.04

Recreation Enterprise Fund

27.48

25.71

25.80

26.71

26.04

Risk Fund

1.00

1.00

1.00

1.00

1.00

Health Fund

0.53

0.80

0.79

0.79

0.79

Kruesler Park

2.00

0.00

0.00

0.00

0.00

OPEB Trust

0.45

0.72

0.73

0.73

0.73

Retirement Fund

0.00

0.50

0.71

0.71

0.71

Total Authorized Positions

367.33

362.65

360.67

357.10

359.68

Since peaking in FY07 at 415.23, Town staffing has decreased by 55.55 FTEP (13.4%). Staff’s intent in proposing the increase in personnel in the FY15 budget is to accomplish a limited, strategic, and cost effective re-allocation of resources to improve the level and/or quality of service in areas that are most critical.


OTHER FUNDS


Below are highlights from the budgets for other Town funds. Additional information can be found at the tabs in the back of the document behind the General Fund information. The Town’s other funds include: Debt Service, Capital Improvement Funds, Recreation Enterprise Fund, Internal Service Funds (Health, Risk, Equipment Replacement), and Trust Funds (Pension and OPEB Trust).


Debt Service Funds (205, 206)


The Debt Service Funds provide for the payment of principal and interest on the Town’s outstanding bonds. During FY10, the Town authorized the issuance of $57,035,000 for a portion of the Town’s Accelerated Capital Improvement Program (ACIP) and refunding all of the Town’s existing debt. In addition, bonds totaling $14,770,000 were issued for the Worth Avenue Commercial District Project. In 2013, the Town issued $55,590,000 for the second phase of the ACIP, “bondable” coastal projects, and the Town’s portion of the Par 3 clubhouse project.


The Town’s outstanding debt as of September 30, 2014 is shown below:


Outstanding

Year Principal Balance @

Issued September 30, 2014 Purpose

2010A

$53,025,000

First Phase of the ACIP and Refund Outstanding Debt.

2010B

$12,130,000

Worth Avenue Commercial District Project

2013

$55,590,000

Second Phase of ACIP, Bondable Coastal,

and Par 3 Clubhouse

Total

$120,745,000


As of September 30, 2014, the Town’s net bonded debt will amount to 18% of the legal limit of $671,053,768 (5% of preliminary FY15 taxable value of $13,421,075,355).


The Town’s credit ratings were reevaluated with the issuance of the 2013 bonds. Moody’s Investors Service issued a rating of Aa1 for the Revenue Bonds and a Aaa issuer rating.

Standard and Poor’s credit rating on the Revenue Bonds is AA+ and the issuer credit rating is AAA. These are the highest ratings these two services issue and represent the highest quality investment grade debt.

The 2010A and 2013 Series Revenue Bonds debt service is funded from non-ad valorem revenues. A portion of each ($202,200) is funded through the Recreation Enterprise Fund for the Town’s portion of the Par 3 Renovation, and a portion is funded through the Coastal Protection Fund ($734,613). The non-ad valorem revenue transfer from the General Fund for FY14 is $6,100,000. Total debt service for the 2010A and 2013 bonds is $7,210,425. The above transfers total $7,036,813. The balance ($173,612) will be funded through the reserves of the debt service fund.


The 2010B Series Revenue Bonds debt service appropriation of $775,000 is funded through non ad valorem assessments on the property owners within the Worth Avenue Assessment District.


Capital Improvement Funds (307, 309, 310, 311, 312, 313)


For FY15 the following are included in the proposed Pay As You Go capital budget:



Staff looks forward to presenting the proposed FY15 budget and to assisting the Mayor and Town Council in your review, consideration, and adoption process.


cc: Department Directors

Thomas G. Bradford, Deputy Town Manager


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Reserve Status

Y

F 2015


Town of Pa m Beach Reserves


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


Unassigned Fund Balance - General Fund


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Pursuant to adopted policy, the unassigned fund balance for the General Fund is to be maintained at a minimum level of 25% of current year General Fund budgeted expenditures. This minimum level is to be maintained to protect the Town against economic downturns, temporary revenue shortfalls, unpredicted one-time expenditures, and for tax rate stabilization purposes.

Twenty-five percent of the FY15 General Fund operating budget (General Fund budget less

coastal transfer) is $15,629,586. The FY13 ending fund balance was $20,043,760.


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 FY15 budget, a transfer of $909,000 from

fund balance was used to fund the contingency reserve as directed by policy.


Reserves - Risk Fund


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The total reserve balance for the Risk Fund was $8,625,018 as of September 30, 2013. 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. Included in the FY14 budget is a Town Council authorized transfer of $2,000,000 of the excess Risk Fund reserves to the Coastal Protection Fund. This amount has been deducted from the reserve

balance.

The trend for the Risk Fund Reserve is

shown in the table.


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Reserve Status

Y

F 2015


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 $1,246,100 for FY14. The purpose of the reserve is to provide an adequate level of net assets for unanticipated financial impacts as well as to provide for one-time expenditures to improve the facilities.


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


At the end of FY13, the net asset balance for the Recreation Enterprise Fund (REF) was $3,753,556. 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 FY13,

2,551,321 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 Cour e charges an additional $2 per round to fund a maintenance and improvement

reserve.

At the end of FY13, the balance is $212,375.


In FY10, a maintenance and improvement fee was implemented for the Tennis program. This reserve at the end of FY13 is $31,075 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 FY13 is $472,319.


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Reserve Status

Y

F 2015


Equipment Replacement Fund


The Townwide Equipment Replacement Fun equipment, vehicles and computers when they

is intended to fund the replacement cost of existing

reach the end of their useful life.

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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 sched by GASB34.

le required


The balance in the Equipment Replacement Fund for year-end FY13 is $15,483,961. The

Town Council authorized the use of a portion of this reserve ($4,867,019) as seed money for an internal loan fund for assessment projects that will be repaid by the assessments. To date, a total of

$2,303,282 has been used for this purpose.


An analysis of the reserves in FY 13, determined an excess balance of $2,858,913 caused by the accumulated interest earned by the fund and identification of equipment that will not be replaced. The Town Council authorized a transfer of this excess amount to the coastal protection fund in FY14. The transfer has been deducted from the total and the reduced reserve is shown in the chart. For FY15, income including the depreciation transfer will total $1,820,202 and expenditures for capital equipment are budgeted at $1,585,630.


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, 2013, was

$3,390,226. The FY15, appropriation for the pay-out of eligible accrued vacation, sick and compensatory time from this reserve is $640,900.


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Health Insurance Reserve


The balance of the reserve in the Health Fund at the end FY13 is $4,025,042. These

reserves guard agains

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.


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Reserve Status

Y

F 2015


OPEB (Other Post Employment Benefits) Trust


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The Town’s OPEB Trust Fund was established 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 is overseen by the Town’s

Investment Advisory Committee.

The net asset

balance in this trust is $24,814,790 as of

September 30, 2013.

The actuarially

determined transfer from the General Fund for the OPEB liability for FY15 is $1,577,000. The Town continues to be well ahead of other government agencies in funding this liability.


Retirement Fund


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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 fund at

he end of FY12 were

$187,286,530. The balance at the end of FY13 is $198,460,764.


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 on the following page identifies the contingency budgets and actual use of the contingency

reserves

or fiscal years 2011 through 2015.


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Reserve Status FY2015


Contingency Reserves FY2011 through FY2015

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Contingency 2011 2012 2013 2014 2015

General Fund Budget 929,468 807,397 843,000 860,000 909,000

General Fund Actual 421,302 806,988 556,668 293,800 ‐0‐

CIP Budget 186,000 181,000 201,000 205,000 205,000

CIP Actual 45,000 94,000 ‐0‐ ‐0‐ ‐0‐

ERF Budget 500,000 500,000 500,000 500,000 500,000

ERF Actual 51,311 ‐0‐ 156,528 136,869 ‐0‐

Risk Budget 500,000 500,000 500,000 500,000 500,000

Risk Actual ‐0‐ 50,000 ‐0‐ ‐0‐ ‐0‐

Health Budget 500,000 500,000 500,000 500,000 500,000

Health Actual 85,000 ‐0‐ ‐0‐ ‐0‐ ‐0‐

Recreation Budget 176,700 155,000 235,600 249,220 272,100

Recreation Actual ‐0‐ 137,000 35,000 ‐0‐ ‐0‐


Unassigned Net Position


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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 on the following page summarize the trend of the unassigned net position, net asset balances, compensated absence, and replacement reserve balances for FY09 through FY13.


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Reserve Status

Y

F 2015


n


e

O

3

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Reserve Balances Fiscal Years 2009 – 2013



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2009

2011

2012

201

Fund

2010

20,980,277

18,394,714

18,155,941

21,424,261

20,043,760

General Fund


3,333,242


3,065,810


3,621,915


3,315,135


3,390,226

Compensated Absence (GF)


10,840,088


11,667,524


13,672,222


14,870,188


12,625,048

Equipme t Replacement Fund

1,050,115

294,764

413,966

707,381

486,466

Recreation Enterpris Fund

351,468

426,749

458,002

397,132

472,319

Recreation ERF

196,718

2,084,181

2,240,125

2,395,723

2,551,321

Dock Replacement

0

50,872

108,722

162,138

212,375

Par 3 M&I Reserve

0

8,446

16,418

23,867

31,075

Tennis M&I Reserve

1,845,717

2,565,197

2,683,896

3,234,334

4,025,042

Health Fund

7,620,642

6,669,596

6,863,675

7,990,553

6,625,018

Risk Fund

15,898,539

17,524,179

18,173,086

20,942,253

24,814,790

Health - PEB Trust

163,129,393

174,544,804

170,564,741

187,286,530

198,460,764

Pension Fund

225,246,199

237,296,836

236,972,759

262,749,495

273,738,204

Total



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TOWN OF PALM BEACH

Office of Information Systems


MEMORANDUM


To: Peter B Elwell, Town Manager


Via: Thomas G. Bradford, Deputy Town Manager From: Spencer D. Wilson, Information Systems Manager Subject: Systems Analyst Positions for FY15 Budget

Date: June 15, 2014


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Recommendation:


The Office of Information Systems is recommending the addition of two Systems Analyst positions in the FY15 budget. These positions are part of a Town Wide plan to provide better technical support and expertise to all Town Departments. These two positions will be under the shared supervision of the Office of Information Systems and the departments to which they will be assigned primary duties: Public Safety and Public Works.


General Description:


For the past nine years the Town of Palm Beach has staffed the Office of Information Systems with six full time employees. Five line employees are overseen by the Information Systems Manager who brings all aspects of the Town’s computer systems together to a centralized management point. Three of these employees (Information Systems Specialists) manage the technical operations of Town’s hardware and operating infrastructure including servers, personal computers, network devices and peripherals. These staff members provide daily support and expertise in systems hardware and desktop software applications. A fourth staff member (GIS Coordinator) oversees all of the Town’s Geographical Information Systems (GIS) and coordinates the management of GIS data and systems from a centralized approach. A fifth staff member (Systems Analyst) is responsible for managing specific major software systems and projects. In 2005 the Town embarked on a five-year software systems upgrade to replace almost all of the existing software that had been in use by the Town. These major systems improvements did not require additional staff members for the Office of Information Systems. Staffing was constant throughout the 5-year upgrade program and daily operating support for all Town Departments remained adequate.

Over the past three years, the Town has added numerous hardware and software systems to enhance and streamline operations within all departments. These new systems have created an additional burden not only on Information Systems staff but on staff of various departments.

These many new systems provide needed functionality and efficiency for the Town but require in house expertise and staff time to use and maintain. There have also been new governmental requirements over the past few years that have required the Town to use technology more and move forward with systems and software to properly manage projects and data. These new technologies have put a strain on staffing resources. The overall requirement within the Town today for technical expertise and management of existing and new systems has increased dramatically since the initial software upgrade implementation in the Town nine years ago. We are no longer able to provide sufficient daily operating support or do adequate long-term planning for implementation of future systems improvements.


Organizational Structure:


In order to provide the necessary Information Systems technical expertise and support for the entire Town, the Office of Information Systems is recommending that the Town increase the FTE number for the Office from six employees to eight employees. The two new positions would be Systems Analysts and would be responsible for implementing new systems and software as well as for ensuring effective use of systems that have been implemented in the past few years.


Since the majority of the demand for these positions is within Public Safety and Public Works, these new positions will have responsibilities and a reporting structure that work directly with each of these functional areas. Direct supervision will come both from the client departments and the Information Systems Manager. This approach will allow the Town to maintain a centralized Information Systems structure while providing specialized support and service to the individual departments. (A successful model for this arrangement is the Town’s Coastal Coordinator position, which is jointly supervised by the Town Manager and the Public Works Director.) The existing Systems Analyst position will be focused on the remaining Town departments in order to provide the level of service that is required in these areas. This existing position will continue to report to the Information Systems Manager with feedback and direction from these other departments as needed.


Public Safety Requirements:


The one area where the need for a Systems Analyst position is the most urgent is within Public Safety. The Police and Fire Rescue Departments have embraced new technology over the past few years and the demand for support and assistance has grown and spread within both departments. In order to maintain existing systems and continue to move forward with new systems, Public Safety needs a person dedicated to their operations so that reliability as well as specialized support is available all of the time. With the implementation of the security camera systems, the direct connect systems, the growth of the mobile computing system, CAD system and the various applications that are used in Fire Rescue; the demand for more I.S. staff is at a critical point. Each of these systems has been overseen by the Office of Information Systems but the day to day operations and support has been diverted to staff within Public Safety. This has created a strain on Public Safety staff while diminishing the effectiveness and quality of the service and

support for these systems. By creating a Systems Analyst position for Public Safety, these systems can have the required technical support in house along with being able to provide the daily management that will make them effective and reliable.


Public Works Requirements:


The Public Works Department has a similar situation where staffing is not available to take full advantage of available technology. This department also requires a Systems Analyst position that has the required skills and knowledge to provide these services. Public Works has been using software for over a decade to track work, inventory and maintenance of the entire Town’s Public Works infrastructure. This system has been under-utilized and has the potential to provide valuable data and documentation for the existing management of the Town’s infrastructure while also providing future enhancements and greater productivity. Public Works also has a very large demand for use of the Town’s GIS systems and resources. The existing staff within the department is not able to take full advantage of the Town’s GIS systems or other existing software. By providing a Systems Analyst position dedicated to Public Works and their functions, the department will make better use of existing systems and more effectively plan for the future.


Town Wide Requirements:


The existing Systems Analyst position will continue to maintain and support the existing Town wide applications. The addition of the two new positions dedicated to the Town’s 3 largest departments also will allow this existing position to provide needed technical resources to the remaining Town Departments. The demand for programing, reporting, support and enhancements of existing systems has increased in all departments. While the primary responsibilities of the 3 Systems Analysts will be divided as described in this memo, we intend to maintain a level of cross training between the three positions so that all departments can receive support when needed and demand can be met as circumstances change. By expanding staff levels in this manner, the knowledge base will be expanded and the resources will be available to handle the needs of the Town now and well into the future.


Funding:


Funding for these two proposed positions (a total of $181,307 for salary and benefits) has been included in the FY15 proposed Information Systems budget along with all of the necessary funding to support the personnel. The employees would be located in existing vacant office space in the Police Department and Public Works Department.


Cc: Jane Struder, Finance Director

Paul Brazil, Director of Public Works Kirk Blouin, Director of Public Safety


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TOWN OF PALM BEACH

Human Resources Department


MEMORANDUM


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To: Peter B. Elwell, Town Manager


From: Danielle Olson, Director of Human Resources


Re: Request to Increase Partial Benefit Part-time HR Assistant to Full-time FTE Date: June 18, 2014


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The Human Resource Assistant position is a partial benefit position that earns retirement but not insurance benefits, works less than 30 hours per week, and is funded by Human Resources (62.5%) and the Town of Palm Beach Employee Retirement System fund (37.5%). With respect to the Retirement Board, the position provides clerical support to the Pension Administrator for Town related business and acts as the Clerk for the Retirement Board. Within Human Resources the position handles all payroll related matters, public record and subpoena requests, tuition reimbursement, performance evaluation reporting, required employee reporting (disclosures, non-Town employment, and nepotism), department billing, filing, supplies, and other general office related matters.


Historically, Human Resources budgeted for and hired temporary clerical staff to assist with larger than expected recruitment activities and also with overall clerical work in the department such as public record requests. Although the temporary clerical staff provided some support, the personnel frequently turned over which led to inconsistent performance and excessive time spent training short-term staff. Budgeted funds were also reserved for the hiring of professional level temporary staff to assist in the review and dissemination of revised job descriptions in addition to the transition from a manual to database maintained job description system. After considering staff from various temporary agencies we were unable to successfully identify a candidate with the professional level qualifications who would be able to become as familiar as needed with the organization in order to fully manage the job description project as required.


After careful consideration of existing financial and personnel resources, and with the approval of the Town Manager, the existing budgeted funds in contractual services were used to temporarily increase the .74 FTE part-time HR Assistant to 1.0 FTE. This allowed the incumbent to work up to 40 hours per week in order to perform the additional clerical and special project work in-house. The temporary approval for this arrangement will expire on September 30, 2014, unless Town Council approves staff’s request to extend it for FY15.

Request to Increase Partial Benefit Part-time HR Assistant to Full-time FTE June 18, 2014

Page 2


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Under the direction of the HR Analyst, the HR Assistant is working on the final details of the job description project and clerical assistance for the recruitment process including screening of applications for minimum qualifications, scheduling of applicants, and coordinating recruitment activities. Recruitment activities are expected to remain higher than historical norms for the next few years. The job description project work includes reviewing all task description data received by the consultant for consistency and continuity, using the available EDEN module to create a database driven job description system, and working with supervisors to review the job description working conditions for ADA compliance. These final project elements will ensure legally compliant and easily accessible job descriptions.


Going forward, the Department plans to enhance the existing training program and implement a currently unused EDEN training module to improve record keeping and management of training offerings. We will continue to offer compliance training programs but also offer competency based programs; some of which will be written and delivered by in-house staff via an e-training system. Additionally, over the past few years the Department has implemented several systems to enhance employee and supervisory services and learning opportunities. We have other improved efficiencies and systems under consideration such as e-Action Forms, self-directed supervisory reporting e-resources, and e-training which we are unable to deliver in the timeframe desired.


Due to the inability to maintain the desired outcomes for both day-to-day operations and projects through the use of temporary staff we are requesting to convert the existing .74 FTE part-time HR Assistant to full-time at 1.0 FTE. This change can be implemented at no additional cost to the Town. The expected $23,503 increase in salaries/wages ($10,000) and employee benefits ($13,503) for the additional .26 FTE has been reduced from contractual expenses in order for this change to be cost neutral to the overall department budget.


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Town of Palm Beach Fire-Rescue


MEMORANDUM


TO: Peter Elwell, Town Manager


VIA: Kirk Blouin, Director of Public Safety FROM: Darrel Donatto, Deputy Fire-Rescue Chief DATE: June 20, 2014

SUBJECT: Proposed increase in the number of Lieutenant Positions in FY2015 budget


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In July of 2013, Fire-Rescue presented to you and the Town Council a study of our staffing and resource deployment. That study made a number of recommendations that were proposed to occur over several years. One of those recommendations included the balancing of resources between the North Fire Station and the Central Fire Station.


Currently, the North Fire Station is staffed by a total of 4 operational personnel assigned to a fire engine and a rescue truck. Both of these units operate together at all times. The two units have a lieutenant, a driver engineer, and two firefighters.


Engine 2 / Rescue 2

Lieutenant

Driver Engineer

Firefighter

Firefighter


Currently, the Central Fire Station is staffed by a total of 6 operational personnel. This station has three units assigned to it with a fire engine staffed by a lieutenant, a driver engineer and a firefighter; as well as two units that respond as a rescue truck or a ladder truck and which as staffed together by a lieutenant, a driver engineer, and a firefighter. The ladder truck and rescue truck at the Central Fire Station are “cross staffed” by three personnel who take either the ladder truck or the rescue truck depending upon the type of call and needs.


Engine 1

Lieutenant

Driver Engineer

Firefighter

Rescue 1

Truck 1

Lieutenant Driver Engineer Firefighter


The study presented to you and the Council included a recommendation to purchase a new “quint” type fire apparatus that will replace both a fire engine and a ladder truck at the

Central Fire Station. This quint serves as both a ladder truck and a fire engine combined. The quint, ordered in February 2014, is expected to be delivered in November of 2014. This new unit will eliminate the need for a driver engineer that is currently assigned to drive and operate the ladder truck at the Central Fire Station, and it will create the need for a Lieutenant to supervise the rescue truck at the North Fire Station. This will balance staffing at Central Fire and North Fire to five personnel each.


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Ladder 1

Lieutenant

Driver Engineer

Firefighter

Rescue 1 Lieutenant Firefighter



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Engine 2

Lieutenant

Driver Engineer

Firefighter

Rescue 2 Lieutenant Firefighter



To accomplish this, Fire-Rescue will promote three new lieutenants at the time the staffing is balanced (estimated to be in January), and will eliminate the need for three driver engineer positions that were previously assigned to drive the ladder truck at the Central Fire Station. The three driver engineer positions would be eliminated through attrition and over time as people are promoted from driver engineer to a higher position, people retire or exit the DROP, or people leave for other reasons. Driver Engineer Bucheck’s DROP will end 6/22/2015. Driver Engineer Buttery’s DROP will end 5/31/2016. It is highly probable that three or more current driver engineers will score well and be considered for promotion to Lieutenant when this new staffing allocation occurs. It is important to note that there will not be any net increase or decrease in the total number of Fire-Rescue FTEs, only an increase in the number of Lieutenants and a decrease in the number of needed Driver Engineers.


Because we do not know the exact date of implementation, who will be promoted, or what positions they will be promoted from, it is not possible to provide an exact cost for this proposed reclassification. However, we can provide an estimate based upon some reasonable assumptions that would ensure adequate funding is within the budget to accomplish our objectives.


Because all of the members who are currently serving as acting (step-up) lieutenants are driver engineers, except one, we will make our assumptions based upon promotions from the driver position to the lieutenant position. To ensure there is adequate funding, we will use the three driver engineers that would create the largest cost if they were promoted, which would include two topped out drivers and one driver who would receive more than 5% for promotion because 5% is less than the starting range for a lieutenant.

The cost estimates are:



Current Annual


Current Fica


Current 2% DC Contribution


Total

Employee A

$

88,146.24

$

6,743.19

$

1,762.92

$

96,652.35

Employee B

$

88,146.24

$

6,743.19

$

1,762.92

$

96,652.35

Employee C

$

59,547.49

$

4,555.38

$

1,190.95

$

65,293.82

$ 258,598.52



Promoted Lt Annual


Current Fica


Proposed 8% DC Contribution


Total

Employee A

$

92,553.55

$

7,080.35

$

7,404.28

$

107,038.18

Employee B

$

92,553.55

$

7,080.35

$

7,404.28

$

107,038.18

Employee C

$

66,973.00

$

5,123.43

$

5,357.84

$

77,454.27


$ 291,530.64

Difference in total cost

$ 32,932.12

for 3/4 of the year

$ 24,699.09

The estimate of $24,699 is greater than the study estimate of $12,000 because of the Town’s recent increase in the defined contribution component of the pension plan, going from a 2% mandatory match by the Town for union employees (driver engineers) to an 8% match by the Town for non-union members (lieutenants).


Based upon the information above, we are requesting permission to reclassify three driver engineer positions to three new lieutenant positions some time near January 2015 and eliminate the three driver engineer positions through attrition and over time.


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PALM BEACH POLICE DEPARTMENT

MEMORANDUM



TO: FROM:


Peter B. Elwell, Town Manager


Kirk W. Blouin, Director of Public Safety

SUBJECT: FY 2015 Proposed Organizational Changes


DATE:

June 26, 2014



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During fiscal year 2014, due to recent employee retirements, resignations, transfers, and future retirements, staff has reviewed unit activities and functions to determine if elimination, reclassification, or a transfer of positions would serve to benefit the Town/Department and possibly create a savings for the Town. As a result of this review, I am recommending the organizational changes listed below for FY15.


Previously, as one of the department’s many cost saving measures, two (2) full-time telecommunicator positions were replaced with three (3) part-time (no benefits) positions which reduced salary/benefits. Utilizing part-time personnel as a substitute to a full-time employee, designated to work a specific shift for a specific period of time, has not proven to be effective or in the best interest of the unit. As part of the above request, the department will eliminate two (2) of the part-time telecommunicator positions and continue to utilize a one (1) part-time position within the Communications Unit during times that best supplement the needs of the unit


Current pay range of full-time telecommunicator

$38,192 - $ 60,283

Estimated Cost for of full-time telecommunicator position

$67,024 - $ 92,579

x 2 = $134,048 - $185,158


Current pay range of part-time (no benefits) telecommunicator $19,096 - $ 30,142 Total Estimated Cost of part-time (no benefits) telecommunicator $20,557 - $ 37,075

X 2 = $41,114 - $ 74,150

Estimated Total Increase (Program 425) w/ benefits $92,934 -$111,008


Reduction in Overtime Costs (Program 425)

$ 35,000

Summary of Changes:


Eliminate Office Assistant II

$ 60,638 - $ 82,492

Eliminate 2 Part-time (no benefits) Telecommunicators

$ 41,114 - $ 74,150

Add Two (2) Full-time Telecommunicators

$134,048 -$185,158

Reduce Overtime

$ 35,000 - $ 35,000

Net Estimated Reduction to FY2015 Proposed Budget

$ 2,704 - $ 6,484


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TOWN OF PALM BEACH

Information for Special Town Council Meeting on: July 17, 2014


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To: Mayor and Town Council


Via: Peter B. Elwell, Town Manager


From: Jay Boodheshwar, Director of Recreation and Special Projects


Re: Request to Increase Recreation Office Assistant II Position from .75 FTE to 1.0 FTE Date: July 2, 2014


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STAFF RECOMMENDATION


Staff recommends that Town Council approve an increase of the Recreation Department’s Office Assistant II position from .75 full-time equivalent (FTE) to 1.0 FTE beginning in FY2015.


GENERAL INFORMATION


For the last eight years, the Recreation Department has sought out and implemented opportunities to centralize administrative functions in an effort to create efficiencies, while allowing facility managers and programming staff to focus on increasing program offerings, participation, and thus, revenue. Following the elimination of one Assistant Recreation Director and the Assistant Dockmaster position, as well as the recommendations received during the Crowe Horwath audit two years ago, it became necessary to centralize a number of additional administrative tasks, such as renewal of annual and seasonal contracts, billing and collection, monthly transient reports, and verification of transient contracts for the Town Docks. These actions, in addition to support functions for the operations of the recreation center, tennis facilities, and golf course, resulted in the need for additional administrative support. As a result, an Office Assistant II position (.75 FTE) was included in the FY14 budget by re-classifying another vacant .75 FTE position.


The higher than anticipated volume of business at the Par 3 Golf Course this past season has resulted in the need for even greater centralization of duties, such as daily deposit trouble shooting, requisitions and PO’s, planning for major events, and employee evaluation management. Therefore, staff is recommending a .25 FTE increase to the Office Assistant II position. The additional 10 hours of administrative staff support gained each week by this change will help ensure appropriate assistance and responsiveness to all Recreation Department divisions, and will further enable operations staff to focus on business growth and customer service.

FUNDING/FISCAL IMPACT


Increasing the Office Assistant II position from .75 FTE to 1.0 FTE will increase the weekly work hours from 30 to 40, and increase the annualized salary by approximately $8,300. This change will also have a small impact on the cost of benefits by approximately $1,800. These additional expenses are fully contained in the proposed FY2015 budget for the Recreation Department.


c: Jane Struder, Director of Finance

Rod Gardiner, Assistant Director of Recreation


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TOWN OF PALM BEACH

Planning, Zoning & Building Department


To: Peter Elwell, Town Manager


From: John Page, PZB Director


Date: May 6, 2014


Re: Request to Hire New Full-Time Employee Combo Plans Reviewer/Inspector


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I am herein requesting your approval to proceed forward with creating a new, additional full-time Combination Plans Examiner/Inspector in the Planning, Zoning & Building Department.


Present Situation. The Town currently employs one full-time Plans Examiner. That employee has the responsibility for review of all newly submitted permit applications/building plans in order to determine Code compliance before permits are issued (a critical function that requires daily attention without exception). The quality of our service to the community hinges, in large part, upon our ability to review plans and issue permits in timely fashion (our internal goal is to review plans and issue permits in ten business days or less).


Historic Need. In FY08, this Department issued just over 8,000 construction permits, growing to 9,275 in FY13. Over 75% of the permit and revision applications received in the Department require plan review. This includes revisions, which although technically not considered permits, also require plan review. New plan submittals are added to the queue each day. Plan review is a constant, never-ending task and an essential cog in our service delivery process. Our present structure includes just one in-house plans examiner, while the equivalent of a second plans examiner is provided by our outside contractors. During our busiest periods, normally July through October, a third contract plans examiner’s services are required. The Department has now surpassed the workload experienced in one of its busiest years (2008), placing additional strain on our goal of providing excellent customer service.


A series of contract plans examiners have been called into service during my tenure with the Town. You may remember names or faces (John Farinelli, Peter Ringle, Doug Taylor, Kevin Hemple, Bill Staples, Don McIntosh, etc.). Our experience over many years has proven that the need for outside plan review assistance is not a part- time, sporadic need, but a critical, constant necessity. In short, the Department has employed the equivalent of a second full-time contract plans examiner for many years.


Contract Employee Challenges. The Department’s experiences with contract plans examiners, sometimes exceptional and sometimes not, is plagued with a series of challenges, including:


  1. LACK OF CONSISTENCY: The individuals that have filled such roles serve relatively short tenures. They sometimes grow weary of full-time work, they request significant time off, their employers reassign them to other locations, etc. This relatively constant turn-over creates a lack of consistency in both the quality of plan review, as well as the quantity of plans reviewed, resulting in an undesirable fluctuation in customer service.

  2. EXCESSIVE TRAINING REQUIRED: Each new contract employee requires training on multiple fronts, such as learning the Town’s philosophy regarding a balanced approach to plans examination, software training (both Eden and Bluebeam), Zoning Code regulations, ARCOM and LPC reviews, etc. This training is extensive, creating indirect cost and resource consequences.

  3. PROCESSING ERRORS: Temporary employees unfamiliar with all Departmental processes are far more prone to processing errors than permanent employees.

  4. LACK OF JOB KNOWLEDGE AND EXPERIENCE: There are significant variations in the level of training and experience of contract employees, requiring varying levels of oversight from our in-house staff.


Lack of knowledge of Town processes and delays in plan review, causing inconsistency and fluctuations in our level of customer service, highlight the difficulty of being too dependent upon outside staffing assistance. Our ability to access multi-certified plans examiners via contract companies is proving difficult. Both pre-approved contract companies have indicated that they do not have multi-certified plans examiners available, and do not expect any in the foreseeable future (a tell-tale sign of a much improved regional construction market). Many full-time contract employees eventually gravitate to municipalities, preferring the stability and benefits found in the public sector. These points illustrate yet additional challenges of being too dependent upon outside assistance.


Comparative Costs. The cost to the Town for a full-time contract plans examiner working 2,080 hours per year ranges from$48/hour to $65/hour depending on which vendor the Town uses. This amounts to an annual cost of

$99,840 to $135,200 if either of the Town’s vendors were able to provide such services.


In comparison, according to an analysis performed by the Human Resources Department, the following outlines the estimated cost associated with this new position.



Pay Range

$51,998

$ 82,077

FICA at 7.65%

$3,978

$6,279

Insurance

$13,866

$13,866

Retirement – Pension

$10,278

$10,278

Retirement – DC 8%

$4,160

$6,566

Total Estimated Cost: $84,280 $119,066


Hiring a second full-time Plans Examiner will increase direct personnel costs, but will decrease Departmental expenses that are currently spent on contract help for the same purpose. The additional personnel expense and corresponding contract savings are expected to be revenue neutral. Please note that the Department will still incur contract costs, although to a much lesser extent, since contract help remains the best solution for dealing with the seasonal ebb and flow of construction activity.


Related Benefit. This Department’s Building Division presented a series of potential operational enhancements to the Town Council in December 2013 to be explored or implemented during the year ahead. The first of those enhancements pertained to “expedited plan review.” This optional, extra-fee service has been extremely popular with the construction industry, enabling permits to be processed in a very short period of time, so contractors can keep jobs moving with minimal delays. Expedited reviews have long been completed as overtime work by Town inspectors during evening hours. Because of present structuring, there is a limit to the number/amount of expedited reviews than can be accommodated each day. Since demand for this service continues to be strong, it would be advantageous for many reasons to restructure the service in a fashion that would allow for expedited reviews to occur during day-time office hours rather at night when fatigue and other logistical concerns come into play. It was proposed in December that the Department might hire a contract plans examiner who would work



Post Office Box 2029 360 South County Road Palm Beach, Florida 33480 Telephone: (561)838-5430 Facsimile (561)835-4621

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E-Mail: pzb@townofpalmbeach.com Website: www.townofpalmbeach.com

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“days,” focusing on the daily queue of expedited plan sets. We have had difficulty obtaining a fully certified contractual plan reviewer to perform this function. If the Council authorizes the Department to hire a second full- time plans examiner as proposed herein, the new employee will set aside prescribed time each day for the purpose of reviewing expedited plan sets (in addition to the next-in-line, traditional plans review process), thus improving the expedited service and also allowing for its continued growth.


Revenue. The revenue from the Town’s Construction Permit activities continues to meet or exceed budgeted numbers. Costs for the proposed position are included in the current budget, and will involve a transfer between line items, with no additional funding required.


Conclusion. I believe the Town’s core mission of providing quality service to our residents would be bolstered by employing a new (second) full time Plans Examiner/Inspector for all of the reasons as noted herein.


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TOWN OF PALM BEACH

Information for Special Town Council Meeting on: July 17, 2014


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To: Mayor and Town Council From: Peter B. Elwell, Town Manager Re: Police Officer Overtime Pay Date: July 1, 2014

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STAFF RECOMMENDATION


I recommend that the Town continue to follow the Fair Labor Standards Act (FLSA) in calculating police officer overtime pay, just as we follow the FLSA in calculating overtime pay for all other Town employees.


GENERAL INFORMATION


During 2013, Public Safety Director Kirk Blouin brought to my attention the Town’s police officers’ desire for their overtime pay policy to be restored to what it had been prior to the collective bargaining of 2010-2012. Previously, overtime pay was provided for all hours worked after the first 160 hours in each 28-day pay period. That was more generous than required by the FLSA, which states that overtime pay must be provided for all hours worked after the first 171 hours in each 28-day pay period. In the collective bargaining process, I recommended modifying the police officer overtime pay policy to conform to the FLSA standard of 171 hours per pay period. I made this recommendation primarily because the Town’s policy with regard to all other employees was to pay in accordance with the FLSA’s requirements and because we were reducing excess expense in every area of Town government. On January 18, 2012, the Town Council approved my recommendation.


Since implementation of this change, a police officer who works between 160 and 171 hours during a particular pay period receives extra pay for those extra hours, but the extra pay is “straight time” (an equivalent hourly rate to what is paid per hour for the first 160 hours in each pay period). “Time and a half” overtime pay begins after 171 hours.


Director Blouin advised me that the police officers’ desire for the Town to revert to the pre-2012 overtime pay policy was resulting in fewer officers working extra assignments voluntarily. He indicated that, when necessary, Police Department management required officers to work the extra assignments and that this situation was negatively affecting morale among some of the officers.


Over the course of several months, I monitored this situation and discussed it several times with Director Blouin. I believed (and still do) that the Town had taken a proper action for proper

reasons in aligning this policy with the FLSA requirements, but I was concerned (and still am) about the management challenge and employee morale impact that Director Blouin described. I had not yet decided whether to recommend any particular action regarding this matter when, at the Town Council meeting on February 11, 2014, former Mayor Jack McDonald urged the Town Council to address the police officers’ desire for the overtime pay policy change. Town Council referred the matter to me and asked for my recommendation. At the Town Council

meeting on March 11, 2014, I recommended that this matter be addressed during the FY15 budget process so that the financial impact could be considered in full context. Town Council approved that recommendation.


Between March and June, I have further considered the factors I had previously considered. I also have reviewed market information and an analysis of what implementing the requested change would likely cost the Town’s taxpayers. Here are my findings:

Expenditure Summary


FY2012

Actual

FY2013

Actual

FY2014

Budget

FY2014

Adjusted*

FY2014

Projected

FY2015

Budget

%

Change

Salaries and Wages

515,533

527,904

555,422

555,422

555,422

567,847

2.24%

Employee Benefits

170,611

193,422

221,247

221,247

227,451

233,381

5.48%

Contractual

6,829

8,385

17,100

17,100

14,250

16,700

-2.34%

Commodities

7,269

6,168

8,900

8,900

8,500

8,800

-1.12%

Capital Outlay

-

-

-

-

-

-

0.00%

Depreciation

-

-

-

-

-

-

0.00%

Other

-

-

-

-

-

-

0.00%

TOTALS

700,242

735,879

802,669

802,669

805,623

826,728

3.00%

*FY14 Adjusted includes FY14 adopted budget plus purchase orders w ritten against the FY13 budget but spent against the FY14 budget.


Salaries and Wages:

The proposed budget for salaries and wages includes performance based merit pay increases.


Employee Benefits:

Employee benefit costs include the health insurance program and the hybrid pension plan.


Contractual:

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The copy machine budget (47.01) was reduced to more accurately reflect expenditures.


Full Time Equivalent Employees

FY2011

FY2012

FY2013

FY2014

FY2015

Town Manager

1.000

1.000

1.000

1.000

1.000

Deputy Town Manager

1.000

1.000

1.000

1.000

1.000

Director of Recreation and Special Projects

-

0.100

0.100

0.100

0.100

Executive Assistant

1.000

1.000

1.000

1.000

1.000

Adminis trative Ass is tant

2.000

2.000

2.000

2.000

2.000

5.000

5.100

5.100

5.100

5.100


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Advice and Litigation FY2015


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PROGRAM: ADVICE AND LITIGATION 122


The Town Attorney advises the Town’s elected officials and staff regarding legal matters concerning the Town of Palm Beach. The Town Attorney represents the Town in lawsuits, hearings, and other litigation matters and prepares contracts, deeds, ordinances, resolutions and other legal instruments for the Town. The Town Attorney, or his designee, attends Town Council, Architectural Commission, Code Enforcement Board, Landmarks Preservation Commission, Planning and Zoning Commission and other Town meetings to provide legal advice and direction regarding issues related to the deliberations of the Mayor, Town Council, Boards and Commissions. The Town Attorney is a contractual position serving at the pleasure of the Town Council. This program also includes funding for special counsel who advises and represents the Town in all collective bargaining and other labor related matters.


Expenditure Summary


FY2012

FY2013

FY2014

FY2014

FY2014

FY2015

%

Actual

Actual

Budget

Adjusted*

Projected

Budget

Change

Salaries and Wages

- - - - - - 0.00%

Employee Benefits

- - - - - - 0.00%

Contractual

654,867 538,451 518,915 558,915 544,200 529,812 2.10%

Commodities

- - - - - - 0.00%

Capital Outlay

- - - - - - 0.00%

Depreciation

- - - - - - 0.00%

Other

- - - - - - 0.00%

TOTALS

654,867 538,451 518,915 558,915 544,200 529,812 2.10%

*FY14 Adjusted includes FY14 adopted budget plus purchase orders w ritten against the FY13 budget but spent against the FY14 budget.


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Information Systems FY2015


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PROGRAM: INFORMATION SYSTEMS 125


Mission: This division exists to maximize the capacity of information systems and technology to leverage human potential in service to the Town of Palm Beach.


Main Activities: The most important things we do to fulfill the mission are:

Expenditure Summary


FY2012

Actual

FY2013

Actual

FY2014

Budget

FY2014

Adjusted*

FY2014

Projected

FY2015

Budget

%

Change

Salaries and Wages

489,487

507,812

510,076

510,076

510,076

683,162

33.93%

Employee Benefits

189,342

226,625

264,702

264,702

264,702

341,825

29.14%

Contractual

619,571

670,587

720,300

743,609

720,300

785,629

9.07%

Commodities

75,967

87,190

126,800

126,800

126,800

136,800

7.89%

Capital Outlay

21,551

4,476

10,000

146,750

10,000

15,000

50.00%

Depreciation

301,000

315,902

235,920

235,920

235,920

247,800

5.04%

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Other - - - - - 0.00% TOTALS 1,696,918 1,812,592 1,867,798 2,027,857 1,867,798 2,210,216 18.33%

*FY14 Adjusted includes FY14 adopted budget plus purchase orders w ritten against the FY13 budget but spent against the FY14 budget.


Salaries and Wages:

The proposed budget for salaries and wages includes performance based merit pay increases for existing employees and a proposed increase of two FTE: a Public Works Systems Analyst and a Public Safety Systems Analyst. These positions are explained in detail elsewhere in this budget document.


Employee Benefits:

Employee benefit costs include the health insurance program and the hybrid pension plan. Increases here are also related to the two proposed Systems Analyst positions.


Contractual:

Contractual expenses for FY15 have increased because of changes in software maintenance. During FY14 the Town upgraded to a new Parking Ticket and Enforcement Management System along with adding three Tyler Eden System modules. There is also an increase in maintenance for Laser fiche due to the purchase of additional licenses for use Town wide. There were several software packages that were in other program budgets last year that where moved into this program to make the management of the software maintenance centralized.


Commodities:

There is a small increase in commodities due to additional funds that are included for software in FY15.


Capital Outlay:

The increase in Capital Outlay is for hardware that is over $1,500. This includes additional funds to purchase network intrusion and security appliances to provide additional protection to the servers and network which are the backbone of the Town’s computer infrastructure.

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Information Systems FY2015


Full Time Equivalent Employees

FY2011

FY2012

FY2013

FY2014

FY2015

Information Systems Manager

1.000

1.000

1.000

1.000

1.000

Systems Analyst

1.000

1.000

1.000

1.000

3.000

GIS Coordinator

1.000

1.000

1.000

1.000

1.000

Information Systems Specialist

3.000

3.000

3.000

3.000

3.000

6.000

6.000

6.000

6.000

8.000


Human Resources FY2015


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PROGRAM: HUMAN RESOURCES 123

Main Activities: The most important things we do to fulfill the Town’s mission are to provide cost effective and competitive compensation and benefit plans to employees; shield the Town from costly litigation related to employment issues; and provide support to employees, which enables them to serve the Town with pride.


Expenditure Summary


FY2012

Actual

FY2013

Actual

FY2014

Budget

FY2014

Adjusted*

FY2014

Projected

FY2015

Budget

%

Change

Salaries and Wages

314,492

327,558

345,440

345,440

345,440

383,001

10.87%

Employee Benefits

112,052

137,265

163,406

163,406

150,810

185,392

13.45%

Contractual

128,345

147,018

187,410

219,086

225,474

258,506

37.94%

Commodities

16,817

20,930

13,360

13,360

18,085

7,832

-41.38%

Capital Outlay

-

-

-

-

-

-

0.00%

Depreciation

750

677

677

677

677

677

0.00%

Other

-

-

-

-

-

-

0.00%

TOTALS

572,456

633,448

710,293

741,969

740,486

835,408

17.61%

*FY14 Adjusted includes FY14 adopted budget plus purchase orders w ritten against the FY13 budget but spent against the FY14 budget.

Salaries and Wages:

The proposed budget for salaries and wages includes performance based merit pay increases. The Department also proposed a shift of costs from contractual to salaries/benefits to convert an existing position from part to full-time in order to more fully serve the needs of employees/supervisors and maintain necessary day-to-day operations.


Employee Benefits:

Employee benefit costs include the health insurance program and the hybrid pension plan.


Contractual:

Recruitment and clinic expenses account for the predominant reasons for the increase in this category. Increased recruitment activities have a direct effect on pre-employment as well as post-employment background expenses associated with the Clinic. There are other less impactful areas where a marginal increase is projected due to increased cost of services such as the Employee Assistance Program. As mentioned prior, a shift of costs from contractual to salaries/benefits proposed to convert an existing position from part to full-time in order to more fully serve the needs of employees/supervisors and maintain necessary day-to-day operations. Finally, the Department proposes a $75,000 increase (to a total of

$100,000) in the Townwide training budget to address the Town’s employee development needs beyond the existing compliance training, extending to a program that fosters professional and supervisory growth in preparation for expected retirements.


Commodities:

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Clinic expenses including pre-employment testing and drug/alcohol free workplace testing that were charged as commodities in prior years was moved to contractual for FY15 in accordance with the State Chart of Accounts.


Full Time Equivalent Employees

FY2011

FY2012

FY2013

FY2014

FY2015

Director of Human Resources

0.800

0.800

0.776

0.776

0.776

Assistant Director

0.600

0.600

0.600

0.600

0.600

Occupational Health Nurse

1.000

1.000

1.000

1.000

1.000

Human Resources Analyst

0.900

0.900

0.900

0.900

0.900

HR Coordinator

-

0.350

0.350

0.350

0.350

HR Ass istant

0.900

0.500

0.375

0.375

0.630

Office Ass is tant II/Clinic

0.370

0.370

0.375

0.375

0.375

4.570

4.520

4.376

4.376

4.631


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Finance Department FY2015


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DEPARTMENT: FINANCE

Mission: The Finance Department is dedicated to providing the highest quality service through a commitment to excellence, integrity and teamwork. We serve the finance, purchasing and record management needs of the Town Council, citizens, Town Manager, Town employees and general public. We provide publications and information to inform citizens and other interested parties regarding the financial position and operations of the Town. We use Generally Accepted Accounting Principles and GFOA budgeting standards to assure that policy makers and the community are well informed and the Town remains fiscally strong. It is important to us to perform our duties efficiently effectively, reliably, and accurately. We take pride in serving our elected officials, our fellow employees and our community.


Revenue Summary

FY2012

FY2013

FY2014

FY2014

FY2015

%

Actual

Actual

Budget

Projected

Budget

Change

Taxi Permits

5,400

4,250

1,500

1,500

1,500

0.00%

Charitable Solicitations Fee

45,380

47,380

50,000

45,000

50,000

0.00%

Charitable Solicit. Adv. Fee

-

345

-

-

-

0.00%

Char Solit Late Filing Fee

5,835

6,325

7,000

7,000

7,000

0.00%

Meeting Tapes Sales

22

-

150

-

-

-100.00%

Lien Search Fee

27,510

32,797

25,000

30,000

30,000

20.00%

Control Pay Advance Revenue Share

838

-

-

-

-

0.00%

84,985

91,097

83,650

83,500

88,500

5.80%

Expenditure Summary

FY2012

FY2013

FY2014

FY2014

FY2014

FY2015

%

Actual

Actual

Budget

Adjusted*

Projected

Budget

Change

Salaries and Wages

1,152,535

1,177,457

1,209,037

1,209,037

1,186,211

1,204,628

-0.36%

Employee Benefits

425,212

477,074

540,399

540,399

542,017

515,422

-4.62%

Contractual

142,585

156,094

181,675

185,635

202,821

178,565

-1.71%

Commodities

59,164

21,450

24,000

24,000

22,905

27,250

13.54%

Capital Outlay

-

-

-

-

-

-

0.00%

Depreciation

3,963

3,034

969

969

969

3,363

247.06%

Other

-

-

-

-

-

-

0.00%

TOTALS

1,783,459

1,835,109

1,956,080

1,960,040

1,954,923

1,929,228

-1.37%

*FY14 Adjusted includes FY14 adopted budget plus purchase orders w ritten against the FY13 budget but spent against the FY14 budget.

þÿ

Records Management;

$316,520 ; 16%

Purchasing;

$628,931 ; 33%



Financial Management;

$983,777 ; 51%