Minutes 07-28-08
MINUTES OF THE CITY COMMISSION BUDGET WORKSHOP
HELD ON MONDAY, JULY 28,2008 AT 1:00 P.M.
IN THE LIBRARY PROGRAM ROOM
Present
Jerry Taylor, Mayor
Jose Rodriguez, Vice Mayor
Ron Weiland, Commissioner
Woodrow L. Hay, Commissioner
Marlene Ross, Commissioner
Kurt Bressner, City Manager
James Cherof, City Attorney
Janet Prainito, City Clerk
REVIEW PROPOSED BUDGET FOR FISCAL YEAR 2008/09
Mayor Taylor called the meeting to order at 1:03 p.m. He thanked all those who were present
for attending and turned the meeting over to Kurt Bressner, City Manager, for an overview of
the budget.
Mr. Bressner reviewed the policy decision the Commission made on May 20, 2008 to keep the
millage rate at 6.4553, explore the interim use of unobligated fund balance, no employee
layoffs and consider the renewal of the fire assessment. The property tax rate was then
confirmed by resolution on July 15, 2008.
The budget requests had been reduced to an increase of 8.5% from 11.3%. The consumer
price index had increased by 4.3% while fuel costs rose 65.8%, FP&L utilities increased by 20%
and the fleet plan transfer went up $l.3M. To balance the budget last year, the fleet plan was
not fully funded requiring the plan to be fully funded this budget year. It is an enterprise fund
that acquires revenue from other funds in the City to support the maintenance and replacement
of all rolling stock contributing to the significant increase for the current year. The Pension Plan
funding increased approximately $lM, pay increases $1.2M and the take-home cars for the
police department were a $420K addition. Overall revenues were down 2.7% as well as
expenses down 2.7%.
There are currently 57 full-time positions that are vacant and 61 part-time vacant positions. A
soft hiring freeze has been in effect since February, 2007 when the property tax legislation was
slated for approval. A net savings of $1.2M was projected as of January 1, 2008, including an
offset for overtime and other expenses. By the end of the fiscal year the savings will total
$1.7M. Overall there has been a reduction of 19 positions and two positions added; a police
lieutenant and a dispatcher.
The potential budget shortage was $6,068,761. To balance the budget, $3.75M would be
transferred from the undesignated fund balance, property was sold in the Heart of Boynton to
the CRA for $1.3M, employee health insurance benefits had a savings of $554,850 plus a
deferral of general employee pension changes saved $300,000. The budget balance shortage
was reduced to $163,911.
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Meeting Minutes
City Commission Special Budget Workshop
Boynton Beach, FL
July 28, 2008
Additional adjustments by staff totaled $164,500 leaving a budget balance surplus of $589.
The adjustments included staff cost savings within the Fire Department saving $30,000,
adjustment in the unit cost for the 16 take-home sqLiad cars with replacement funding saving
$56,000, reduction of one new Communications Operator position saving $53,500 and funding
part of the Police Department software with $12.50 funds saving $25,000.
It was projected that next fiscal year the taxable value in the City would continue to decline
another 4% including anticipated new growth. The CRA area may decline even more. The real
estate market is not scheduled to begin turning around until the 4th quarter of 2009. Changes
in property assessments are not reflected in the revenue for one year or fiscal year 2011. The
2010/2011 assessments should realize a 2% increase and then a 4% increase tnereafter.
On the expense side, the general fund expenses are being projected to increase by 5% per year
for increased fuel costs, personnel costs and other expenses. If the projections are correct, in
2010 the expenses will exceed revenues by $11.1M. Program activities and revenue streams
will need to be adjusted.
Mr. Bressner stressed a sacred fund balance of 10% of the general fund operating expenses is
maintained at approximately $7.7M to $8.5M. If the economy improves the projections will not
be valid. Based on the projections, Commissioner Weiland contended the current budget
should be more closely scrutinized.
Long range strategies had been submitted by the budget committee. By January of 2009, a
master plan for the following year should be presented for consideration based on the current
projections. Two factors became effective this year that caused the reductions in revenue; the
market decline of non-home exempt properties and the homestead exempted properties
enjoying an additional $25,000 exemption. There was a 4% increase in commercial
development.
In the Utility Fund, the revenues were lower than anticipated even with the impact of the rate
revision. The projected water sales were $13.8M and the actual sales were $l1M. The
contributing factors have been the water restrictions, slower development and delinquent
payments. The scheduled rate increase would generate $12.1M. This will necessitate several
years to balance the revenues. The sewer revenues for this year are $500K less than budgeted.
Based on expected expenditures $4.8M of reserves will be needed to balance the fund.
Additional reductions will be necessary and an additional rate revision will be needed for a 10%
surcharge for water and a 6% surcharge for sewer over and above what had been projected.
There was an increase in the shared cost for the water treatment plant of $900,000. The utility
budget was still a work in progress. The plan for adjustments to the rate structure every five
years may have to be modified or reduce expenditures, defer capital outlay, defer capital
construction or a combination of all three. The current revenue stream even with the proposed
rates, will be insufficient.
Mayor Taylor noted $4M would need to be transferred from the reserves. Barry Atwood,
Director of Financial Services, advised the utility general fund had a reserve of $l1M. All other
monies are pledged for debt service or capital improvement and bond proceeds. There is a
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Meeting Minutes
City Commission Special Budget Workshop
Boynton Beach, FL
July 28, 2008
directive to get the water improvements moving forward. There are some neighborhood utility
projects that may have to be postponed.
It was also pointed out that only two of three large capital improvement projects budgeted in
the General Fund could be undertaken. Mr. Bressner recommended the police facility at an
expense of $25M to $31M and the Oceanfront boardwalk project at an expense of $2.5M move
forward, while the Boundless Playground project budgeted at $9M with a deposit of $2.5M from
the City be furloughed. The boardwalk is a public safety issue and the Police Department is
operating in 18,000 square feet while they need 65,000 square feet. The CRA discussion of the
Downtown Master Plan may also need to be considered in relation to the City facilities.
Mayor Taylor recalled the plan was to raise money from the private sector to fund the
Boundless Playground. The feasibility of raising the funding was questionable. The matter was
scheduled before the Commission on August 19, 2008. A preview of the new police facility
would also be presented.
The Sanitation Fund will be on budget with the 50 cents per month rate increase. The Golf
Fund has some improvements that will require using reserve funds for one year as budgeted.
The remaining funds are less dramatic.
Mr. Bressner commended the budget review team, Lori LaVerriere, Barry Atwood, Bill Bingham,
Jeff Livergood and Kofi Boateng, on their efforts and program analysis.
Vice Mayor Rodriguez contended, in lieu of the analysis over the next five years of decreasing
property values and increased costs, a harder look should be taken to controlling current costs.
He questioned the market adjustment and Mr. Bressner explained it was a pay increase based
on labor contracts. The Police union contract was a non-anniversary 3% and the Fire union
was yet to be determined. It was a market adjustment over and above performance increases.
The merit increase averages 3% which is not effective until April 1 of each year.
Vice Mayor Rodriguez questioned what the ramifications would be if the take-home squad cars
had to be returned in the next year. Commissioner Weiland recommended the cars that were
taken home outside the City limits be required to pay.a fee. Chief Immler advised there was a
20 mile limit presently in effect. Commissioner Wejiand was in favor of take-home cars for
detectives to respond during off hours. Patrol cars should be left at the station each night.
Chief Immler explained the previous contract provided for the take-home car program and the
City would purchase the cars over a three year period. This reduced the need for line cars that
any officer could use to offset the number of cars to be purchased. One-third of the officers live
within the City limits. Vice Mayor Rodriguez felt there should be an incentive for officers to live
within the City and use the visibility of the cars as a benefit to deter crime.
Commissioner Hay recalled it had been asserted that maintenance costs were r?duced with the
take-home car program. Mr. Bressner added the life cycle of the take-home cars was extended
also.
Chief Immler mentioned the take-home car program was a collective bargaining tool and
agreed upon in lieu of a greater salary increase. Mr. Bressner indicated the contract required
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Meeting Minutes
City Commission Special Budget Workshop
Boynton Beach, FL
July 28, 2008
the City to use their "best efforts" to increase the number of available take-home cars. Any
cost sharing assessment would be a bargaining issue to be determined. The smaller cars being
purchased will be more cost efficient. .
Mayor Taylor asserted the take-home car program was a commitment made to the Police
Department and influenced both morale and recruitment. He was in favor of retaining the
current program. Chief Immler added similar size police departments do have take-home car
programs. Commissioner Ross confirmed !t was in lieu of increased salaries. Attorney Cherof
agreed it was part of the give and take of bargaining. Chief Immler also indicated the cars
were only used for transportation to and from work.
Vice Mayor Rodriguez emphasized he was not against the take-home car program. He did feel
some guidelines should be built into the program including an incentive for Boynton Beach
residents and the benefit to the City. He agreed with Commissioner Weiland that the issue
should be addressed at this time rather than waiting until the next budget cycle. Nothing would
be taken away from the officers, rather the program would have guidelines.
Mayor Taylor asserted the projections were speculative and agreed in January the budget
should be reviewed. Vice Mayor Rodriguez contended the property values would be worse than
anticipated in January 2009 and the budget deficit will be much larger.
Mr. Bressner reported the take-home car program cannot be based on residency versus non-
residency because it is based on rank and seniority rather than geographics. He suggested
staff return to the PBA with a cost sharing arrangement of fuel costs based on distance or a gas
price threshold for all cars. Commissioner Weiland reiterated his opinion that only detectives
should have take-home cars.
Vice Mayor Rodriguez felt the budget was very short-sighted. Commissioner Weiland agreed
and repeated his feelings that the shortfall issue should be addressed at this time rather than
waiting until January, 2009. Mayor Taylor supported the commitment of the take-home cars.
Commissioner Ross concurred with Mayor Taylor's position. Commissioner Hay realistically
viewed the program as a deterrent to crime if the cars are kept within the community and
wanted the program to continue. He did agree with the City Manager's suggestion for an
across-the-board assessment for gasoline. There was consensus to leave the purchase of new
take-home cars in the current budget.
Chief Immler advised the program was heavily regulated and directives were in place. He
explained the department had 32 vacancies at one point and those officers who were hired are
now reaching the three year requirement of employment to be given a take-home car. After
those cars are provided, only recurring fuel and replacement costs will be budgeted. The
replacement cost is $5500 per car per year for all fleet vehicles. Mr. Bressner explained the
department initially budgets the purchase price of the vehicle out of the capital funds.
Thereafter the department transfers monies to the fleet fund for replacement based on the life
cycle formula of the particular vehicle.
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Meeting Minutes
City Commission Special Budget Workshop
Boynton Beach, FL
. July 28, 2008
Mayor Taylor was in favor of maintaining the status quo of the program and not investigate any
cost sharing incentives. Vice Mayor Rodriguez indicated it would be irresponsible not to discuss
alternatives openly and balance the budget. Commissioner Ros~ asserted there was a bigger
picture that should be assessed with all staff members and fleet vehicles. There was
agreement the standard should be for all vehicles. There was agreement that cost sharing
alternatives should be reviewed.
Mr. Bressner indicated he was concerned with the revenue stream in the utility fund and the
projected shortfall. A supplemental surcharge or reduction in operating expenses or deferral of
capital construction projects should be considered. Bond coverage to meet the debt service
requirement for the improvements is mandatory. There is another bond issue scheduled for
2009/2010 for the next phase of improvements. Mayor Taylor suggested the deferral of
proposed capital improvement projects should be reviewed.
Commissioner Hay inquired about the fund balance that is maintained in the reserve. Mr.
Bressner reported the target is 10% and the fund has maintained $20M to $25M as unrestricted
reserves. He cautioned there could be a point in the future, as the expenses increased, that
the fund may fall short.
It was noted the level of service would be maintained with the proposed budget. Commissioner
Weiland countered the services were maintained with a transfer from the reserve funds. It was
also mentioned that the population of the City had decreased by 199 people and would increase
with annexations.
Mr. Bressner next addressed the long range plans for the 2009/2010 budget year. He noted
any further program adjustments would affect existing staff. Employee health insurance
premiums/co-pays, early retirement buyout, a transition from defined benefit to defined
contribution pension plans, evaluation of the City vs. employee share of pension contributions
and a change in hours of operation for City facilities were suggested as pOSSible cost reductions.
Attorney Cherof cautioned that the current proposed change in employee health insurance
benefits had not been accepted by all the unions who represent those employees. A study
would need to be done on the feasibility of an early retirement buyout and the cost savings of
reducing hours of operations. Mr. Bressner alleged feedback from employees has indicated a
desire to consider the alternatives.
Suggestions to increase revenues included shrinking the TIF district, sell one or more parks,
franchise Solid Waste, franchise towing contract, implement electronic vendor payments and
sell or provide easements for cell towers on city-owned parcels. Shrinking the TIF district would
not generate a significant amount of revenue. The sale of unimproved park sites should be
considered because lack of funding would negate any improvements. Attorney Cherof added
some park sites have restricted covenants that would have to be considered also. Mr. Bressner
cautioned if Solid Waste were sold, service levels could fall and control would diminish. The
issue of towing contracts would be brought before the Commission next month.
Capital projects may need to be deferred to the future and the reconfiguration of Code
Compliance operations could offer opportunities for cost reductions. There would also be the
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Meeting Minutes
City Commission Special Budget Workshop
Boynton Beach, FL
July 28, 2008
possibility of transferring the Library, Parks, Fire and Police to Palm Beach County if they would
provide the services. The citizens' expectation for service levels must also be considered.
Mayor Taylor thanked the staff and budget committee for their efforts. There being no further
information to be brought to the Commission, Mayor Taylor properly adjourned the meeting at
2:32 p.m.
CTIY OF BOYNTON BEACH
----
ATTEST:
~~)/3/
Woodrow L. Hay, Commission
~//?"~~
Marlene Ross, Commissioner
7ut
Ja et M. Prainito, Cf'v1C
Gi Clerk
~-f1~
OOdith A. Pyle t::7
Deputy City Clerk
6
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~.
The City 01 BOYlltOll Beach
OFFICE OF THE CITY MANAGER
100 E Boynton Beach Boulevard
P.D. Box 310
Boynton Beach, Florida 33425-0310
City Manager's Office: (561) 742-6010
FAX: (561) 742-6011
e-mail: bressnerk@ci.boynton-beach.fI.us
www.boynton-beach.org
To:
From:
Date:
Subject:
Mayor Taylor
Vice-Mayor Rodriguez
Commissioner Weiland
Commissioner Hay
Commissioner Ross
Kurt Bressner, City Manager
July 25, 2008
Updated Budget Documents
The City's Budget Meeting is scheduled for Monday, July 28th at 1 PM in the Library Program
Room. A second session, if needed is scheduled for Tuesday, July 29th also at 1 PM in the Library
Program Room.
Attached to this report please find the following exhibits:
1. Agenda and notice of Special City Commission Meeting
2. Summary of General Fund with Final Revisions - Goldenrod - a surplus of$589.
3. Summary of reasons for the General Fund increases of 8.5% - Green Sheet
4. Recap of General Fund Balances with assumed revenue and expense projections for five
years. (White Sheet)
5. Wall Street Journal article of 7/24/08 on the decline of state tax revenues.
6. Summary of Utility Fund - Yellow Sheet
7. Preliminary staff report on future budget adjustments and areas that need work in FY 08-09
for possible implementation in 09-10. Also please see Exhibit C attached to the City
Manager's Budget memo of July 15,2008 for details on service level adjustments per 2007
and 2008 program evaluation.
8. Revised Budget Sheets - These are three-hole punched for insertion in your budget binder.
Basically these are revised sheets for the Utility Fund and the front summary pages.
In past years, following a short overview by the City Manager, we have reviewed the budget by
exception, that is to say to respond to specific questions from the City Commission on each of the
funds beginning with the General Fund.
Cc: CMLT
The City of Boynton Beach
City Clerk's Office
100 E BOYNTON BEACH BLVD
BOYNTON BEACH FL 33435
(561) 742-6060
FAX: (561) 742-6090
e-mail: prainitoj@ci.boynton-beach.fl.us
www.boynton-beach.org
NOTICE OF SPECIAL CITY COMMISSION MEETING
MONDAY, JULY 28, 2008 AT 1:00 P.M.
LIBRARY PROGRAM ROOM
208 SOUTH SEACREST BLVD.
BOYNTON BEACH, FLORIDA
In accordance with Section 22 of the City Charter of the City of Boynton Beach and Florida
Statutes you are hereby notified of Special City Commission meetings to be held on July 28,
2008 at 1:00 p.m. until business is concluded:
1. REVIEW PROPOSED BUDGET FOR FISCAL YEAR 2008/09;
Jerry Taylor, Mayor
Jose Rodriguez, Vice Mayor
Ronald Weiland, Commissioner
Woodrow Hay, Commissioner
Marlene Ross, Commissioner
NOTICE
IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE CITY COMMISSION WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING, HE/SHE
WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SUCH PURPOSE, HE/SHE MAY NEED TO ENSURE THAT A VERBATIM RECDRD OF THE PROCEEDING IS
MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. (F.S. 286.0105)
THE CITY SHALL FURNISH APPROPRIATE AUXIUARY AIDS AND SERVICES WHERE NECESSARY TO AFFORD AN INDIVIDUAL WITH A DISABIUTY AN EQUAL
OPPORTUNITY TO PARTICIPATE IN AND ENJOY THE BENEFITS OF A SERVICE, PROGRAM, OR ACTIVITY CONDUCTED BY THE CITY. PLEASE CONTACT JOYCE
COSTELLO, (561) 742-6013 AT LEAST lWENTY-FOUR HOURS PRIOR TO THE PROGRAM OR ACTIVITY IN ORDER FOR THE CITY TO REASONABLY
ACCOMMODATE YOUR REQUEST.
07/24/20083:57 PM
c: City Mgr, City Atty, City Commission, Finance, Information Officer, Facilities, Chambers,
S:\CC\WP\SPECIAL MEETINGS\Budget Meeting Notices\Year 2008\Budget Special Meeting - 07-28-08.doc
America's Gateway to the Gulfstrearn
~
City of Boyntl,. Jeach, Florida
Summary of Potential Reduction Alternatives @ 6.4553 Property Tax Rate
FY 2008-2009 Budget
-~-
General Fund
Department Expenditures:
- -- ---_."-- ---- -------
Police (FY 2009 Includes 16 Take-Home Patrol Cars) , $
Fire & Emergency Management___ $
Public Works $
-
Recreation & Parks $
-
City Hall, Commission, City Mgr, City Atty, & City Clerk . ~ $
Development $
Ubrary $
- --- - ------------
m/~ $
-- ~-. - -------- - ----- ----" --
Finance I $
------------ - - . .~
Human Resources -+ $
Total Potential Departmental Reductions & Employee Vacant i $
__ Position Impact _ __ -+-
----+-
FY 2007-2008
Commission
Adopted
24,910,736 $
14,952,206 $
5,933,624 $
5,068,364 $
4,535,206 $
4,148,795 $
2,490,441 $
2,174,435 f--~
1,176,149 $
1,096,599 $
66,486,555 $
Department Budgets
FY 2008-2009
Amended
Departmental
Requests
City Manager's
Recommended
Reductions
-
---
I ----.
% Change Employee
Recommended Impact
FY 2008-2009 Vacant
City Manager's Compared to Positions
Recommendation FY 2007-2008
Full Part
Net of Commission Time Time
Reductions Adopted
$
$
$
$
$
$
$
$
$
$
$
i .--
$
$
28,789,786 I
15,975,753
6,301,102
5,148,637
4,437,309
4,096,796
2,633,828
2,308,361
1,262,399 I
---r
1,195,961 .
72,149,932 i
15.6%
6.8%
6.2%
1.6%
-2.2%
-1.3%
5.8%
6.2%
7.3%
9.1%
~
(24,699,531)
(11,612,000)
(35,013,460)
(71,324,991) J~L-__
1 Q-
0 0
4 0
4 0
0 0
5 0
0 ~
I 0 --~
0 1- 0
0 0
II ,Q.
--
-- --
-- --
----
-
-+- i
1. --
-----j--
-~- -
---
-.-
C:IDocuments and SettingslbressnerklLocal SettingslTemporary Internet FileslOLK121 I FY 2009 Budget Workshop - Summary Pages (7-27-08) 18-Summary Reduction Alternative
51,000
1,249,817
I
5,243,820 I
77,393,752 (A)
~~~-!l (B) - (A)
I
3,750,000
1,300,000
554,850
300,000
I
/163,911\1
Page 8
Major Factors Contributing to the Increase of City Manager's Recommended Budget
I"(ecommenaea Running
Percent Change Increase Total Explanation
$ 76,438,707 Original Departmental Submissions - FY 2008-2009
$ (3,038,958) Reclassification to Fire Assessment Fund, net of Other Added Submissions
$ 73,399,749 Adjusted Department Submissions
$ (1,249,817) City Manager's Recommended Reductions
$ 72,149,932 City Manager's Recommended Budget - FY 2008-2009
Increase of City Manager's Recommended Budget Compared
~ $ 5,663,377 $ 5,663,377 to FY 2007-2008 Commission Adopted Budget
$ 66,486,555 FY 2007-2008 Commission Adopted Budget
Major Budget Increases Accounted for as Follows:
2.0% $ 1,344,578 $ 67,831,133 Fleet funding for replacement vehicles restored
1.3% $ 877,286 $ 68,708,419 General pension plan increase (29.85%)
0.3% $ 205,694 $ 68,914,113 Police pension plan increase (8.02%)
0.3% $ 180,919 $ 69,095,032 Fire pension plan increase (8.72%)
0.8% $ 526,705 $ 69,621,737 Health insurance increase (15%) beforre $554,850 recommended reduction
1.0% $ 692,625 $ 70,314,362 Market adjustment - majority union-related (2%)
0.8% $ 531,157 $ 70,845,520 Merit raises - majority union-related (1.5%)
0.7% $ 480,000 $ 71,325,520 16 Police take-home vehicles restored to recommended budget
0.4% $ 299,099 $ 71,624,619 Fuel increase (65.8%)
0.3% $ 200,000 $ 71,824,619 FPL rate increase (20%)
0.5% $ 325,313 $ 72,149,932 Other inflationary increases and net program increases (decreases)
~ $ 5,663,377 $ 72,149,932 City Manager's Recommended Budget - FY 2008-2009
C:\Documents and Settings\bressnerk\Desktop\FY 2009 Budget Workshop - Summary Pages (7-27-08)8.1 Major Factors - GF Increase
Page 8.1
CITY OF BOYNTON BEACH
FUND BALANCE SUMMARY ANALYSIS OF THE GENERAL FUND
Actual Budget Projected
FYE 2006 FYE 2007 FYE 2008 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012 FYE 2013
Adopted Estimated Recommended
Total Fund Balance, October 1 $ 21,039,554 $ 25,627,244 $ 25,468,745 $ 25,468,745 $ 25,414,149 $ 21,664,149 $ 10,486,731 $ (5,788,506) $ (24,049,298)
Revenues & Transfers
Taxes $ 34,583,244 $ 40,347,154 $ 47,162,590 $ 46,848,700 $ 40,134,460 $ 38,885,452 $ 39,690,398 $ 41,221,628 $ 42,812,500
Licenses & Permits $ 8,945,992 $ 6,687,553 $ 6,853,630 $ 6,835,630 $ 5,537,000 $ 5,585,062 $ 5,632,072 $ 5,759,482 $ 5,930,189
Intergovernmental Shared Revenue $ 9,751,875 $ 7,769,434 $ 8,778,700 $ 8,484,010 $ 7,458,000 $ 7,549,700 $ 7,832,410 $ 8,126,288 $ 8,431,777
Charges for Services $ 3,789,704 $ 3,892,683 $ 4,156,150 $ 3,960,610 $ 4,939,531 $ 5,114,080 $ 5,295,634 $ 5,486,287 $ 5,685,414
Interest & Other Revenues $ 2,308,757 $ 2,829,758 $ 2,233,425 $ 1,993,400 $ 1,644,000 $ 1,702,728 $ 1,775,181 $ 1,851,038 $ 1,930,463
Transfers From Other Funds $ 4,351,566 $ 4,336,800 $ 5,386,800 $ 5,386,800 $ 11,612,000 $ 11,674,000 $ 11,925,680 $ 12,187,427 $ 12,459,644
$ 63,731,138 $ 65,863,382 $ 74,571,295 $ 73,509,150 $ 71,324,991 $ 70,511,022 $ 72,151,375 $ 74,632,151 $ 77,249,988
Prior Period Adjustment (Taxes) $ $ 1,383,954 $ $ $ $ $ $ $
Reduction of Public Service Tax Transfer included above due to:
Replace One-time Transfer from CIP $ $ $ $ $ $ (425,000) $ (600,000) $ (800,000) $ (900,000)
Reduce Transfer for Added Debt Service (Police Facility) $ $ $ $ $ $ $ (2,500,000) $ (2,500,000) $ (2,500,000)
Expenditures & Transfers To Other Funds (Expenditures
Compounded @ 5% from FYE 2010 through FYE 2013) $ (59,143,448) $ (67,405,835) (74,571,295) $ (73,563,746) $ (77,393,752) (81,263,440) $ (85,326,612) $ (89,592,942) $ (94,072,590)
Revenues Over (Under) Expenditures $ 4,587,690 $ (158,499) $ $ (54,596) $ (6,068,761 ) $ (11,177,418) $ (16,275,237) $ (18,260,792) $ (20,222,602)
Adjustments Needed to Halaance the Hudget (~Yl:: 2009)
Revenues - Sale of Property in HOB to CRA $ $ $ $ $ 1,300,000 $ $ $ $
I::xpenditures Reductions & I ransters: $ $ $ $
Health Insurance Recommended Savings $ $ $ $ $ 554,850 $ $ $ $
Defer General Employee Pension Changes $ $ $ $ $ 300,000 $ $ $ $
I-'otenltall::xpendlture Reductions to Halance Hudge! $ $ $ $ $ 103,911 $ $ $ $
$ $ $ $ $ 2,318,761 $ $ $ $
Needed Appropnatlon 01 Undeslgnated ~ und Halance to Halance $ $ $ $ $ 3,750,000 $ 11,1 ({,418 $ 16,275,237 $ 18,260,792 $ 20,222,602
$ $ $ $ $ 6,068,761 $ 11,177,418 $ 16,275,237 $ 18,260,792 $ 20,222,602
Total Fund Balance, September 30 $ 25,627,244 $ 25,468,745 $ 25,468,745 $ 25,414,149 $ 21,664,149 $ 10,486,731 $ (5,?~8,506) $ (24,049,298) $ (44,271,900)
Reserved Fund Balance for:
Prepaid Items $ 72,167 $ 37,945 $ 54,500 $ 46,000 $ 50,000 $ 48,000 $ 49,000 $ 48,500 $ 48,750
Inventories $ 1,032 $ 853 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Unreserved Fund Balance for:
Designated for Emergencies-l0% Expenditures $ 7,234,042 $ 7,457,130 $ 7,356,375 $ 7,739,375 $ 8,126,344 $ 8,532,661 $ 8,959,294 $ 9,407,259 $ (0)
Undesignated $ 18,320,003 $ 17,972,817 $ 18,056,870 $ 17,627,774 $ 13,486,805 $ 1,905,070 $ (14,797,800) $ (33,506,057) $ (44,321,650)
Total Fund Balance, September 30 $ 25,627,244 $ 25,468,745 $ 25,468,745 $ 25,414,149 $ 21,664,149 $ 10,486,731 $ (5,788,506) $ (24,049,298) $ (44,271,900)
Total Fund Balance - # of months operating 5.20 4.53 410 4.15 3.36 1.55 (0.81) (3.22) (5.65)
GFOA recommended minimum = 1-2 months
Total Fund Balance - % of expenditures 43% 38% 34% 35% 28% 13% -7% -27% -47%
GFOA recommended minimum = 5-15%
States Slammed by Tax Shortfalls - WSJ.com
http://online.wsj.com/article-'print/SB 12168274000 1077489.html
.THEW~~~ JOURNAL.
July 24, 2008
PAGE ONE
States Slammed by Tax Shortfalls
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By CONOR DOUGHERTY, AMY MERRICK and ANTON TROIANOVSKI
July 74, '!(}fJ8; Pu.Ke A J
The stumbling U.S. economy is forcing states to slash spending and cut jobs in order to close a
projected $40 billion shortfall in the current fiscal year.
That gap -- identified Wednesday in a survey by the National Conference of State Legislatures -- is
more than triple the size of the previous year's. It is the result of broad economic weakness at the state
and local levels that could cause pain throughout this year and into 2010. Sales-tax collections, for
example, have been hurt by the housing slump and high gasoline prices, which are prompting cutbacks
in consumer spending. Personal income-tax collections have been hit by rising unemployment, while corporate income-tax
collections have been eroded by falling profits.
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"We expect it to get worse before it gets better," said Corina Eckl, fiscal-program director of the National Conference of State
Legislatures. The conference's new report describes the shortfalls states face in their budgeting process for the current fiscal year,
which began in July.
SEe INrERACTIVI: GRAPHIC (fJ
A separate survey of economic conditions by the Federal Reserve's 12 regional banks --
the "beige book" -- said economic activity was sluggish across most of the U.S. Consumer
spending was "mixed, weak, or slowing" in nearly all areas, despite the distribution of
billions of dollars in economic-stimulus checks.
The beige-book survey also said companies are increasingly worried about growth
prospects and inflation, Indeed, also on Wednesday, discount chain Costco Wholesale
Corp. warned that its profits will fall "well below" Wall Street's expectations for its fiscal
fourth quarter ending Aug. 31. It blamed the speed of manufacturers' price increases.
..
--j,.-t',
\
Unlike the federal government, most states are required to balance their budgets. Most
have so far resisted tax increases, instead opting for raising prices on things like tolls and
college tuition, and cutting back on services like education and health care. Some chose
one-time measures such as tapping rainy-day funds that were built up in flusher times. That could lead to future cutbacks if the
economy doesn't bounce back in coming months.
Summaries of regional activity
The spreading economic weakness also is affecting localities, which are being ravaged by falling property-tax collections and a
decline in state aid. In Minnesota, the city of Duluth plans to stop operating its Fun Wagon -- a free trailer stuffed with games and
cookout supplies for a neighborhood party. Other services, including a city pool and a fire hall, also are being eliminated.
RELATED
Several state-university systems are being forced to raise tuition and tighten their belts.
Regents at the University of California and California State University system have raised
undergraduate fees 7.4% and 10% annually, respectively, to cope with rising enrollment
and other costs. For a University of California student, it represents an increase of $490 to
$7,126, excluding miscellaneous fees charged by individual campuses.
. Read the full report2
. Fed Snapshot Isn't Pretty Picture3
. Oil Retreat Takes Pressure Off Fed4
. Costeo's Profit Is Squeezed by Jump in CostsS
. Video: Beige Book's Gloomy Picture ~6
Virginia Tech is raising its tuition for in-state undergraduates by nearly I 1%. "For us it
was a matter of, 'Are we going to take professors out of the classroom, or are we going to
raise tuition?'" said Lawrence G. Hincker, associate vice president for university relations.
States are also reducing their payrolls and programs. Vermont is cutting about 400 jobs through attrition, while Tennessee is using
buyouts and possibly layoffs to eliminate about 3,000 government jobs.
Social services have been hit hard. Ten states have made targeted cuts in Medicaid, while three have cut contributions to the
Temporary Assistance for Needy Families program.
Bonnie Laughlin, a 52-year-old resident of Hiram, Maine, who cares for four foster children, has seen her daily reimbursement from
the state for caring for the children decline from $60 to $52,50 per child this year. The state has also eliminated money for "respite
care" -- when foster parents can get away from their kids -- as well as reimbursement for recreation activities for the children.
10f3
7/24/20089:40 AM
States Slammed by Tax Shortfalls - WSJ.com
http://online.wsj .com/article yrint/SB 12168274000 I 077 489 .html
For instance, Ms. Laughlin has been paying for dance lessons for her 10-year-old autistic foster daughter, but she's not sure she'll be
able to keep it up. "It definitely puts hardships on families," Ms. Laughlin said.
The Primary Culprit
The housing slump, now well into its second year, is the primary culprit. The decline in home sales has cut into real-estate transfer
taxes. Construction spending and employment have declined. Fewer home sales have resulted in lower sales of home furnishings and
washing machines, eating into sales taxes.
Of course, for many states, today's budget woes stem at least partly from expanding their services during the good times and not
planning enough for the inevitable downturn.
REAL TIME ECONOMICS
7
.L. . Read the latest news and analysis
~ on the economy at WSJ.com's Real
Time Economics blog8
. Beige Book: Isolated Bright Spots May Be
Dimming9
. Summer Beige Book: Staycations and Higher
Prices 10
Meantime, states are dealing with shortfalls of many kinds. According to the report by the
association of state legislatures, 22 states are reporting sales taxes that are below forecast.
In nine of those states, the collections were below forecasts that had already been reduced
downward. Seventeen states had a shortfall in corporate income tax, II states were behind
on personal-income taxes, and II were also behind on miscellaneous taxes such as
insurance-premium taxes.
At the same time, costs are rising. Over the past several years, many states have taken
. over more of their K-12 education funding from local governments, while many others
have expanded Medicaid.
Many energy-producing states have been spared some of this pain, and have actually benefited from rising food and gasoline prices.
Texas, Wyoming and Colorado have all seen job and income growth continue to rise, which has helped them avoid budget problems.
In Massachusetts, state officials are trying to close loopholes that let companies reduce their tax bills in part by shifting income out
of state. "You couldn't afford to simply waste $500 million a year by allowing tax avoidance," says Noah Berger, executive director
of Massachusetts Budget and Policy Center, a Boston think tank. The state says it expects to generate $291 million from its
crackdown on corporate tax loopholes.
In Illinois, Gov. Rod Blagojevich unilaterally cut $1.4 billion from the $59 billion budget the legislature sent him in May. The state
says it expects to save an additional $500 million through belt-tightening at state agencies.
Heavy Cuts
The governor's changes include heavy cuts in spending for education and health care. The state plans about $600 million in
health-care cuts, including making hospitals and nursing homes wait longer for Medicaid reimbursements.
Health services, among states' fastest growing costs, are being cut across the country. Ohio is closing two mental-health facilities as
state agencies look to shed $733 million. The state is also cutting a program that provides free nicotine patches to smokers.
Virginia's funding for hospitals and nursing homes to care for the poor and elderly was reduced by $76 million over the next two
fiscal years, according to an analysis by the Commonwealth Institute for Fiscal Analysis in Richmond, Va. Maine is cutting money
for foster care, mental-health services and "flexible funding," which social workers can spend on specific needs for clients.
"Our concern is the fact that the government has assumed responsibility for these things, and now they're basically saying, 'We can't
do it anymore,'" says Richard Farnsworth, executive director of Portland, Maine-based Woodford Family Services. "Now the
question is, 'Who's going to do it?'"
It's not just humans who are feeling the squeeze. Maine has already closed one fish hatchery, and the state isn't expected to offset the
rising price of fuel and fish food, said fishery biologist Forrest Bonney. "In recent years we expanded our stocking program,
however all of a sudden we're faced with the additional expense of feeding and transporting" fish, Mr. Bonney said.
-.A.J. Miranda, Philip Shish kin, Jim Carlton and Alyssa Abkowitz contributed to tbis article.
Write to Conor Dougherty at cOnl)r.doughcrty.awsj.com 11, Amy Merrick at am) .mcITick:dwsj.coIll12 and Anton Troianovski at
. k.' . 13
anton. lrOtal1llVS .1iIt;\VsJ.cllm
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7/24/20089:40 AM
CITY OF BOYNl \-.. BEACH, FLORIDA
SUMMARY OF REVENUES & EXPENDITURES - UTILITIES FUND
FY2008-2009 BUDGET
2007-2008 2008-2009 2009 Recommended
Adopted Estimated Department Manager From 2008 Adopted
Revenues by Source Budget Budget Request Recommended $ Change % Change
Charges for Services:
Subdivision Ord. Procedure Fee $ 50,000 $ 62,600 $ 50,000 $ 50,000 $ 0.0%
Water Sales 13,853,000 11,000,000 12,100,000 12,100,000 (1,753,000) -12.7%
Water Connection Fee 206,000 170,000 80,000 80,000 (126,000) -61.2%
Water Service Charge 200,000 210,000 200,000 200,000 0.0%
Sewer Service 14,251,907 12,800,000 13,825,000 13,825,000 (426,907) -3.0%
Stormwater Utility Fee 3,495,800 3,305,000 3,315,000 3,315,000 (180,800) -5.2%
Televise Sewer Lines 30,000 7,000 10,000 10,000 (20,000) -66.7%
Total Charges for Services 32,086,707 27,554,600 29,580,000 29,580,000 (2,506,707) -7.8%
Other Revenues:
Interest Earnings 1,100,000 560,000 840,000 840,000 (260,000) -23.6%
Sale of Surplus Materials 5,000 500 1,000 1,000 (4,000) -80.0%
Bad Debt Recoveries 10,000 3,000 3,000 3,000 (7,000) -70.0%
Miscellaneous 10,000 35,400 30,500 30,500 20,500 205.0%
Solid Waste Fund (Transfer In) 101,108 101,108 101,000 101,000 (108) -0.1%
Total Other Revenues 1 ,226,108 700,008 975,500 975,500 (250,608) -20.4%
Total Revenues 33,312,815 28,254,608 30,555,500 30,555,500 (2,757,315) -8.3%
Expenditures by Function
Division:
Water Distribution 1,472,215 1,608,832 1,717,509 1,702,509 230,294 15.6%
Public Water Treatment 6,159,042 5,788,860 6,852,662 6,687,749 528,707 8.6%
Meter Reading & Services 1,210,417 1,056,475 1,264,389 1,213,810 3,393 0.3%
Wastewater Collection 1,825,751 1,737,401 1,809,756 1,809,756 (15,995) -0.9%
Wastewater Pumping Stations 2,587,611 2,364,706 2,640,763 2,564,370 (23,241 ) -0.9%
Sewage Treatment 3,775,800 3,556,340 4,105,000 4,505,000 729,200 19.3%
Water Quality 523,507 514,381 584,339 584,339 60,832 11.6%
Utility Administration 1,977,065 1,863,216 2,049,100 2,027,809 50,744 2.6%
General Administration & Transfer 5,556,800 5,127,130 5,724,800 5,628,000 71,200 1.3%
Utilities Engineering 1,196,367 1,166,131 1,325,331 1,280,705 84,338 7.0%
Stormwater Maintenance 928,047 815,690 1,010,738 919,958 (8,089) -0.9%
Customer Relations 1,217,468 1,139,876 1,213,983 1,213,983 (3,485) -0.3%
Total Division Expenditures 28,430,090 26,739,038 30,298,370 30,137,988 1,707,898 6.0%
Debt Service 4,882,725 3,857,845 5,452,540 5,304,665 421,940 8.6%
Total Expenditures 33,312,815 30,596,883 35,750,910 35,442,653 $ 2,129,838 6.4%
Budget Surplus (Deficit) $ - $ (2,342,275) $ (5,195,410) $ (4,887,153)
C:IDocuments and Settingslbressnerkllocal SellingslTemporary Internet FileslOLK121Ulility Rev-Exp Summary EBAKB-EBA
City of Boynton Beach
Long Range Cost ReductionlRevenue Increase Study Options
FY 2009-2010 Budget and Beyond
(Supplement to Exhibit C - City Manager's Budget Memo - dated 7/15/08)
Reduce Personnel Services Expenditures:
~ Employee Health Insurance Premiums/Co-Pays:
HRlInsurance Committee will continue to: 1) study various plan structures to identify
potential savings in plan rates; 2) study and determine cost savings for alternatives to city
funded medical premiums as well as co-pays and insurance coverage.
~ Early Retirement Buyout:
Staff will: 1) conduct a cost/benefit analysis to determine whether or not an early buyout
program would be beneficial to the City/Employees; 2) evaluate long range benefits of a
buyout initiative regarding post-termination and filling vacated positions vs. job sharing.
~ Pension Analysis - Transition from Defined Benefit to Defined Contribution Plan:
Staff will: 1) evaluate alternative models of pension plans; 2) changes proposed would
likely be for new employees only; 3) develop transition plan for current employees not yet
vested; 4) pension plan for those employees not vested should be an employee option.
~ Pension Analysis - Evaluate City vs. Employee Share:
Staff will evaluate employee contribution levels - City currently paying approximately 9%
vs. employee 7% (general employees) - staff will evaluate various models.
~ Change Hours of Operations for City Facilities:
Staff will: 1) study feasibility/cost savings of reducing hours of operations for some or all
city facilities (4 - 10 hr. work days); 2) determine feasibility/cost savings of reduced work
hours i.e. 38 hr. work week, 37.5 hr. work week; 3) determine value of energy savings,
reduction of custodial needs, fuel savings, employee commutes, etc. 4) evaluate feasibility
of telecommuting.
Revenue (Continuine "One Shots"):
~ Shrink TIF District:
Staff will: 1) study impact of reducing/eliminating CRA districtlboundaries; 2) evaluate
impact of bond restrictions; 3) conduct cost/benefit analysis of absorbing CRA into City
i.e. current CRA debt service vs. future gain in tax revenues.
~ Sell One or More Parks:
Staff will inventory and study unimproved park sites the City either has no current plans to
improve or cannot improve due to lack of funding.
~ Franchise Solid Waste:
Staff will determine feasibility of franchising solid waste services citywide: 1) evaluate
franchise fees vs. transfer of Solid Waste Funds into the General Fund; 2) evaluate sale of
equipment related cost savings; 3) evaluate billing mechanisms.
~ Franchise Towing Contract:
Staff will: 1) present options for new contract to Commission including franchising towing
services in the City; 2) identify potential level of new revenue as a result of franchising; 3)
identify cost reduction measures for future contract models.
~ Implement electronic vendor payments with Bank of America:
Program in process of implementation. Annual revenue anticipated to be $75,000.
1
};>. Sell or provide easements for cell towers on city-owned parcels:
Staff will identify several tower locations and the feasibility of providing an easement vs.
receiving annual lease payments.
Other:
};>. Defer Capital Projects:
Staff will: 1) consider possibility of deferring certain capital projects to future years; 2)
determine impact of deferring projects on the overall capital plan; 3) evaluate future use of
public service tax revenues for capital projects 4) evaluate savings of annual maintenance
expense and impact on general operating budget.
};>. Refigure Code Compliance Operations:
Staff will: 1) evaluate current operational procedures; 2) evaluate staffing levels; 3)
evaluate level of service standards (response times, complaint resolution, etc.).
Transfer Services to Palm Beach County: Further discussion necessary.
};>. Library
};>. Parks
};>. Fire
};>. Police
Sell Water & Sewer Utility: Further discussion necessary.
2