FY 2018 Annual Budget Document - Palm Beach County
Transcript Of FY 2018 Annual Budget Document - Palm Beach County
PALM BEACH COUNTY, FL FISCAL YEAR 2018 ANNUAL BUDGET
The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Palm Beach County Board of County Commissioners, Florida for its annual budget for the fiscal year beginning October 1, 2016.
In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device.
The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.
Fiscal Year 2018 Annual Budget
Palm Beach County, FL
PRINCIPAL OFFICIALS OF PALM BEACH COUNTY
Board of County Commissioners:
Top row from left to right: Dave Kerner (District 3), Hal R. Valeche (District 1) , Mary Lou Berger (District 5) , and Steven L. Abrams (District 4)
Bottom row from left to right: Mack Bernard (Vice Mayor, District 7), Melissa McKinlay (Mayor, District 6) , and Paulette Burdick (District 2)
Constitutional Officers:
Sharon R. Bock, Clerk & Comptroller
Dorothy Jacks, Property Appraiser
Ric L. Bradshaw, Sheriff
Susan Bucher, Supervisor of Elections
Anne M. Gannon, Tax Collector
Appointed Officials:
Verdenia C. Baker, County Administrator Denise Nieman, County Attorney Joseph Bergeron, Internal Auditor
Office of Financial Management and Budget:
Sherry Brown, OFMB Director John Wilson, Budget Director Lisa Pontius, Assistant Budget Director
Fiscal Year 2018 Annual Budget
Palm Beach County, FL
ACKNOWLEDGEMENTS
Special recognition is given to the following individuals for their efforts in coordinating and preparing the FY 2018 Budget.
Office of Financial Management & Budget
Sherry Brown
OFMB Director
John Wilson
Budget Director
Lisa Pontius
Assistant Budget Director
Mark Braun
County Debt Manager
Amy Karpf
Budget Manager
Jeremy Baker
Grant/Budget Analyst
Valerie Alleyne
Budget Analyst III
Derrek Moore
Budget Analyst III
Marilyn Tincher
Budget Analyst III
Ebony Bruton
Budget Analyst II
Alicia DeAbreu
Budget Analyst II
Kristi Parham
Fiscal Specialist III
Special thanks to: County Commissioners for their early and continuous involvement in the budget process. County Administrator, Deputy County Administrator and Assistant County Administrators for their expanded participation in this year's budget process.
Department Heads and Their Staff for their extraordinary effort in formulating the budget.
Mission
Statement
To continually improve, in the most cost-effective manner, the services to our customers; protection of the overall public good, as guided by the Board of County Commissioners’ policies; and to achieve a recognized high level of
public satisfaction on both costs and quality of service. We will focus continually on our customers’ needs and expectations, recognize
limitations in resources, explore creative and equitable revenue alternatives and respond capably and swiftly to changing priorities.
Fiscal Year 2018 Annual Budget
Palm Beach County, FL
HOW TO USE THE BUDGET DOCUMENT
The purpose of this section is to provide the reader with a guide to the document's contents; The following describes each of its major sections:
County Administrator's Budget Message This section provides an overview of the entire budget and highlights how the County is responding to the needs of our community and the Board of County Commissioners' policy direction.
Introduction This section provides general information about the County; its budget philosophy and process; financial policies (which form the foundation of the County's budget development and financial management processes); explanation of fund structure and governmental accounting; the County's long term goals; and Budget assumptions, issues, and the budget calendar.
Budget Summary This section provides the reader with basic overview of the budget. Included in this section are the budget summary, staffing, revenue sources trends and forecasts, Expenditure Summaries, and a tax millage rate summary.
Board Departments & Agencies This section presents the budgets of departments/agencies reporting to the Board of County Commissioners and contains information about County activities and expenditures.
Constitutional Officers This section presents the budgets of the independently elected officials (other than the Board of County Commissioners), i.e., Clerk & Comptroller, Sheriff, Supervisor of Elections, Tax Collector, Property Appraiser, Judiciary, State Attorney, and Public Defender.
Capital Improvement Program This section highlights the County's capital improvement expenditures and provides an overview of the capital needs, as well as proposed financing sources.
Debt Service This section highlights the County's budgeted debt service expenditures and provides an overview of the projected debt service needs through FY 2022.
Appendices This section contains a glossary and acronyms.
TABLE OF CONTENTS
BUDGET MESSAGE
County Administrator's Budget Message
1
BUDGET DOCUMENT INTRODUCTION
Information about Palm Beach County
11
Organization Chart
19
At A Glance
20
Demographics
22
Governmental Accounting
24
Financial Policies
27
Long Term Goals/Policies
34
Budget Philosophy & Process
39
Budget Calendar
41
Budget Assumptions
42
Budget Issues
44
Organizational Changes
45
BUDGET SUMMARY INFORMATION
Budget Summary Total Comparison
47
Changes in Property (Ad Valorem) Taxes
48
Increase (Decrease) in Millage Over Rolled-Back Rate 49
Description of Revenues by Type
50
Budget Summary - Revenues
51
Description of Expenditures by Activity Type
52
Budget Summary - Expenditures
53
Summary Charts
54
Sources/Uses of Funds
55
Division of Receipts and Expenditures
56
Summary of Revenues by Source
57
Expenditures by Category
58
Appropriations Summary
59
Budgeted Reserves
60
Analysis of Revenue Sources
61
Forecast of Revenues & Expenditures
78
Major Funds
80
Changes in Fund Balance
83
Budget Comparison By Fund
91
Position Summary by Department
98
Employees Per 1,000 Population
100
BOARD DEPARTMENTS & AGENCIES
Understanding Department Budgets
101
County Commission
County Commission
103
County Attorney
107
Internal Auditor
113
Palm Beach County, FL
BOARD DEPARTMENTS & AGENCIES (continued)
County Administrator
County Administration
117
Department of Airports
121
Community Services
127
County Cooperative Extension
133
County Library
139
Department of Housing and Economic Sustainability 145
Engineering and Public Works
151
Environmental Resources Management
157
Facilities Development and Operations
163
Fire Rescue
169
Fleet Management
175
Human Resources
179
Information Systems Services
185
Legislative Affairs
191
Medical Examiner
197
Metropolitan Planning Organization
201
Office of Financial Management & Budget
205
Office of Resilience
211
Palm Tran
213
Parks and Recreation
219
Planning, Zoning & Building
225
Public Affairs
231
Public Safety
237
Purchasing
243
Risk Management
249
Tourist Development Council
255
Water Utilities Department
261
Youth Services
265
Non-Department Agencies
Commission on Ethics
273
Criminal Justice Commission
279
Office of Community Revitalization
285
Office of Equal Opportunity
291
Office of Inspector General
297
Office of Small Business Assistance
301
Non-Department Operations
General Government
306
Non-Departmental Specific Reserves
307
Community Redevelopment Agencies Operations
308
Drug Abuse Trust Fund
309
Pollution Recovery Trust Fund
310
Value Adjustment Board
311
Ag Reserve Management Fees
312
Other Non-Departmental Expenses
313
Driver Education Trust Fund
314
Domestic Violence Trust Fund
315
Other County Funded Programs
Financially Assisted Agencies
318
Health Care District
320
Public Health Department
321
Other County Funded Programs
322
TABLE OF CONTENTS
CONSTITUTIONAL OFFICERS
Clerk & Comptroller
323
Judicial
327
Property Appraiser
340
Sheriff
342
Supervisor of Elections
344
Tax Collector
346
CAPITAL IMPROVEMENT
Capital Improvement Program Overview
349
Capital Budget Revenues & Appropriations by Category 354
History Capital Projects by Type
356
FY 2018 Capital Budget Reserves
358
Capital Project Summary
360
Impact of Capital Projects on the Operating Budget
388
Estimated Operating Impact of Capital Projects
389
DEBT SERVICE
Debt Service Overview
391
Summary of Bond Issues & Installment Debt
392
Debt Service Summary by Function FY 2018
396
Future Debt Service Requirements
397
Debt Service Ratios
398
Debt Service Data
400
Debt Service by Fund
401
APPENDICES
Glossary
433
Acronyms
443
INDEX
Index
451
Palm Beach County, FL
Board of County Commissioners
Melissa McKinlay, Mayor Mack Bernard, Vice Mayor Hal R. Valeche Paulette Burdick Dave Kerner Steven L. Abrams Mary Lou Berger
County Administrator Verdenia C. Baker
Office of Financial Management & Budget, 301 North Olive Avenue, West Palm Beach, FL 33401 (561) 355-2580 Fax: (561) 355-2109
December 29, 2017
The Honorable Melissa McKinlay, Mayor and Members of the Board of County Commissioners
RE: Adopted Budget – FY 2018
On behalf of the County Departments and Constitutional Officers, I am pleased to present the FY 2018 adopted budget. The budget is balanced at the countywide rate of 4.7815 mills, which is the same as FY 2017. This rate is 5.27% above the roll back rate and will generate $845.6 million in taxes, $56 million more than last year. The FY 2018 levied taxes are up 22.8% above the FY 2007 level. During this period, CPI and population is up 31.5%.
The most significant impact on the FY 2018 General Fund budget was the Sheriff’s budget request, which was a net ad valorem increase of $31.5 million. A few of the other major impacts on the FY 2018 budget include:
• 26 new ad valorem supported positions for BCC departments • 3% pay increase for employees • Increase in reserves to maintain policy level of 8% A list and explanation of impacts on ad valorem requirements can be found on pages 4 -5.
General Fund Undesignated reserves for FY 2018 are 8.2% of the total fund budget. This meets County’s preferred policy level. The availability of reserves for use in a financial emergency is one indication that a government is financially strong. Reserves provide the flexibility to fund special opportunities and emergencies and are a key consideration when rating agencies evaluate future borrowings. The County, one of only 47 in the country, maintains AAA ratings from all three rating agencies.
Countywide Ad Valorem Tax History
(in millions)
$900
$845.6
$789.6
$800 $729.9
$700
$667.3
$623.1
$599.6
$600
$500 2013 2014 2015 2016 2017 2018
1
Melissa McKinlay, Mayor and Members of the Board of County Commissioners Adopted Budget - Fiscal Year 2018 December 29, 2017
Budget, Millage, and Taxes:
The FY 2018 adopted budget totals $4.5 billion. The net budget, which excludes internal service charges, interdepartmental charges, and interfund transfers, is $3.8 billion and is $145.1 million (4%) greater than the FY 2017 net budget. Taxes, excluding voted debt, in comparison to roll-back and the prior year are summarized in the following table.
Taxing District Countywide Library Fire Rescue
Main MSTU Jupiter MSTU
Millage 4.7815 0.5491
FY 2017 Amount
$789,564,716 48,446,010
3.4581 2.0035
231,718,738 19,414,286
FY 2018 Rollback
Millage
Amount
4.5421
$803,255,676
0.5208
49,045,131
3.2747 1.9065
234,728,633 19,675,792
FY 2018 Adopted
Millage
Amount
4.7815
$845,592,790
0.5491
51,710,218
3.4581 2.0038
247,874,640 20,679,964
Aggregate
6.5957 $1,089,143,750
6.3363 $1,120,554,135
6.5925
$1,165,857,612
Property Values:
Taxable property values have been rebounding since FY 2013. Last year’s values increased 8.2%. The taxable value as of January 1, 2016 (used in calculating millage rates for FY 2018) is $176.8 billion, an increase of $11.7 billion, or 7.1% over last year’s valuation, including new construction of $2.7 billion and the revaluation of existing property. This is a new record high since the peak back in FY 2008. All property values and rollback calculations are based on the preliminary tax roll submitted by the Property Appraiser on July 1. Property values are projected to increase 5% - 7% for the next few years.
Taxable Values History (in billions)
$180
$176.8
$170 $165.1
$160 $152.7
$150 $139.6
$140 $130 $125.4 $130.3
$120 2012 2013 2014 2015 2016 2017
2
The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Palm Beach County Board of County Commissioners, Florida for its annual budget for the fiscal year beginning October 1, 2016.
In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device.
The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.
Fiscal Year 2018 Annual Budget
Palm Beach County, FL
PRINCIPAL OFFICIALS OF PALM BEACH COUNTY
Board of County Commissioners:
Top row from left to right: Dave Kerner (District 3), Hal R. Valeche (District 1) , Mary Lou Berger (District 5) , and Steven L. Abrams (District 4)
Bottom row from left to right: Mack Bernard (Vice Mayor, District 7), Melissa McKinlay (Mayor, District 6) , and Paulette Burdick (District 2)
Constitutional Officers:
Sharon R. Bock, Clerk & Comptroller
Dorothy Jacks, Property Appraiser
Ric L. Bradshaw, Sheriff
Susan Bucher, Supervisor of Elections
Anne M. Gannon, Tax Collector
Appointed Officials:
Verdenia C. Baker, County Administrator Denise Nieman, County Attorney Joseph Bergeron, Internal Auditor
Office of Financial Management and Budget:
Sherry Brown, OFMB Director John Wilson, Budget Director Lisa Pontius, Assistant Budget Director
Fiscal Year 2018 Annual Budget
Palm Beach County, FL
ACKNOWLEDGEMENTS
Special recognition is given to the following individuals for their efforts in coordinating and preparing the FY 2018 Budget.
Office of Financial Management & Budget
Sherry Brown
OFMB Director
John Wilson
Budget Director
Lisa Pontius
Assistant Budget Director
Mark Braun
County Debt Manager
Amy Karpf
Budget Manager
Jeremy Baker
Grant/Budget Analyst
Valerie Alleyne
Budget Analyst III
Derrek Moore
Budget Analyst III
Marilyn Tincher
Budget Analyst III
Ebony Bruton
Budget Analyst II
Alicia DeAbreu
Budget Analyst II
Kristi Parham
Fiscal Specialist III
Special thanks to: County Commissioners for their early and continuous involvement in the budget process. County Administrator, Deputy County Administrator and Assistant County Administrators for their expanded participation in this year's budget process.
Department Heads and Their Staff for their extraordinary effort in formulating the budget.
Mission
Statement
To continually improve, in the most cost-effective manner, the services to our customers; protection of the overall public good, as guided by the Board of County Commissioners’ policies; and to achieve a recognized high level of
public satisfaction on both costs and quality of service. We will focus continually on our customers’ needs and expectations, recognize
limitations in resources, explore creative and equitable revenue alternatives and respond capably and swiftly to changing priorities.
Fiscal Year 2018 Annual Budget
Palm Beach County, FL
HOW TO USE THE BUDGET DOCUMENT
The purpose of this section is to provide the reader with a guide to the document's contents; The following describes each of its major sections:
County Administrator's Budget Message This section provides an overview of the entire budget and highlights how the County is responding to the needs of our community and the Board of County Commissioners' policy direction.
Introduction This section provides general information about the County; its budget philosophy and process; financial policies (which form the foundation of the County's budget development and financial management processes); explanation of fund structure and governmental accounting; the County's long term goals; and Budget assumptions, issues, and the budget calendar.
Budget Summary This section provides the reader with basic overview of the budget. Included in this section are the budget summary, staffing, revenue sources trends and forecasts, Expenditure Summaries, and a tax millage rate summary.
Board Departments & Agencies This section presents the budgets of departments/agencies reporting to the Board of County Commissioners and contains information about County activities and expenditures.
Constitutional Officers This section presents the budgets of the independently elected officials (other than the Board of County Commissioners), i.e., Clerk & Comptroller, Sheriff, Supervisor of Elections, Tax Collector, Property Appraiser, Judiciary, State Attorney, and Public Defender.
Capital Improvement Program This section highlights the County's capital improvement expenditures and provides an overview of the capital needs, as well as proposed financing sources.
Debt Service This section highlights the County's budgeted debt service expenditures and provides an overview of the projected debt service needs through FY 2022.
Appendices This section contains a glossary and acronyms.
TABLE OF CONTENTS
BUDGET MESSAGE
County Administrator's Budget Message
1
BUDGET DOCUMENT INTRODUCTION
Information about Palm Beach County
11
Organization Chart
19
At A Glance
20
Demographics
22
Governmental Accounting
24
Financial Policies
27
Long Term Goals/Policies
34
Budget Philosophy & Process
39
Budget Calendar
41
Budget Assumptions
42
Budget Issues
44
Organizational Changes
45
BUDGET SUMMARY INFORMATION
Budget Summary Total Comparison
47
Changes in Property (Ad Valorem) Taxes
48
Increase (Decrease) in Millage Over Rolled-Back Rate 49
Description of Revenues by Type
50
Budget Summary - Revenues
51
Description of Expenditures by Activity Type
52
Budget Summary - Expenditures
53
Summary Charts
54
Sources/Uses of Funds
55
Division of Receipts and Expenditures
56
Summary of Revenues by Source
57
Expenditures by Category
58
Appropriations Summary
59
Budgeted Reserves
60
Analysis of Revenue Sources
61
Forecast of Revenues & Expenditures
78
Major Funds
80
Changes in Fund Balance
83
Budget Comparison By Fund
91
Position Summary by Department
98
Employees Per 1,000 Population
100
BOARD DEPARTMENTS & AGENCIES
Understanding Department Budgets
101
County Commission
County Commission
103
County Attorney
107
Internal Auditor
113
Palm Beach County, FL
BOARD DEPARTMENTS & AGENCIES (continued)
County Administrator
County Administration
117
Department of Airports
121
Community Services
127
County Cooperative Extension
133
County Library
139
Department of Housing and Economic Sustainability 145
Engineering and Public Works
151
Environmental Resources Management
157
Facilities Development and Operations
163
Fire Rescue
169
Fleet Management
175
Human Resources
179
Information Systems Services
185
Legislative Affairs
191
Medical Examiner
197
Metropolitan Planning Organization
201
Office of Financial Management & Budget
205
Office of Resilience
211
Palm Tran
213
Parks and Recreation
219
Planning, Zoning & Building
225
Public Affairs
231
Public Safety
237
Purchasing
243
Risk Management
249
Tourist Development Council
255
Water Utilities Department
261
Youth Services
265
Non-Department Agencies
Commission on Ethics
273
Criminal Justice Commission
279
Office of Community Revitalization
285
Office of Equal Opportunity
291
Office of Inspector General
297
Office of Small Business Assistance
301
Non-Department Operations
General Government
306
Non-Departmental Specific Reserves
307
Community Redevelopment Agencies Operations
308
Drug Abuse Trust Fund
309
Pollution Recovery Trust Fund
310
Value Adjustment Board
311
Ag Reserve Management Fees
312
Other Non-Departmental Expenses
313
Driver Education Trust Fund
314
Domestic Violence Trust Fund
315
Other County Funded Programs
Financially Assisted Agencies
318
Health Care District
320
Public Health Department
321
Other County Funded Programs
322
TABLE OF CONTENTS
CONSTITUTIONAL OFFICERS
Clerk & Comptroller
323
Judicial
327
Property Appraiser
340
Sheriff
342
Supervisor of Elections
344
Tax Collector
346
CAPITAL IMPROVEMENT
Capital Improvement Program Overview
349
Capital Budget Revenues & Appropriations by Category 354
History Capital Projects by Type
356
FY 2018 Capital Budget Reserves
358
Capital Project Summary
360
Impact of Capital Projects on the Operating Budget
388
Estimated Operating Impact of Capital Projects
389
DEBT SERVICE
Debt Service Overview
391
Summary of Bond Issues & Installment Debt
392
Debt Service Summary by Function FY 2018
396
Future Debt Service Requirements
397
Debt Service Ratios
398
Debt Service Data
400
Debt Service by Fund
401
APPENDICES
Glossary
433
Acronyms
443
INDEX
Index
451
Palm Beach County, FL
Board of County Commissioners
Melissa McKinlay, Mayor Mack Bernard, Vice Mayor Hal R. Valeche Paulette Burdick Dave Kerner Steven L. Abrams Mary Lou Berger
County Administrator Verdenia C. Baker
Office of Financial Management & Budget, 301 North Olive Avenue, West Palm Beach, FL 33401 (561) 355-2580 Fax: (561) 355-2109
December 29, 2017
The Honorable Melissa McKinlay, Mayor and Members of the Board of County Commissioners
RE: Adopted Budget – FY 2018
On behalf of the County Departments and Constitutional Officers, I am pleased to present the FY 2018 adopted budget. The budget is balanced at the countywide rate of 4.7815 mills, which is the same as FY 2017. This rate is 5.27% above the roll back rate and will generate $845.6 million in taxes, $56 million more than last year. The FY 2018 levied taxes are up 22.8% above the FY 2007 level. During this period, CPI and population is up 31.5%.
The most significant impact on the FY 2018 General Fund budget was the Sheriff’s budget request, which was a net ad valorem increase of $31.5 million. A few of the other major impacts on the FY 2018 budget include:
• 26 new ad valorem supported positions for BCC departments • 3% pay increase for employees • Increase in reserves to maintain policy level of 8% A list and explanation of impacts on ad valorem requirements can be found on pages 4 -5.
General Fund Undesignated reserves for FY 2018 are 8.2% of the total fund budget. This meets County’s preferred policy level. The availability of reserves for use in a financial emergency is one indication that a government is financially strong. Reserves provide the flexibility to fund special opportunities and emergencies and are a key consideration when rating agencies evaluate future borrowings. The County, one of only 47 in the country, maintains AAA ratings from all three rating agencies.
Countywide Ad Valorem Tax History
(in millions)
$900
$845.6
$789.6
$800 $729.9
$700
$667.3
$623.1
$599.6
$600
$500 2013 2014 2015 2016 2017 2018
1
Melissa McKinlay, Mayor and Members of the Board of County Commissioners Adopted Budget - Fiscal Year 2018 December 29, 2017
Budget, Millage, and Taxes:
The FY 2018 adopted budget totals $4.5 billion. The net budget, which excludes internal service charges, interdepartmental charges, and interfund transfers, is $3.8 billion and is $145.1 million (4%) greater than the FY 2017 net budget. Taxes, excluding voted debt, in comparison to roll-back and the prior year are summarized in the following table.
Taxing District Countywide Library Fire Rescue
Main MSTU Jupiter MSTU
Millage 4.7815 0.5491
FY 2017 Amount
$789,564,716 48,446,010
3.4581 2.0035
231,718,738 19,414,286
FY 2018 Rollback
Millage
Amount
4.5421
$803,255,676
0.5208
49,045,131
3.2747 1.9065
234,728,633 19,675,792
FY 2018 Adopted
Millage
Amount
4.7815
$845,592,790
0.5491
51,710,218
3.4581 2.0038
247,874,640 20,679,964
Aggregate
6.5957 $1,089,143,750
6.3363 $1,120,554,135
6.5925
$1,165,857,612
Property Values:
Taxable property values have been rebounding since FY 2013. Last year’s values increased 8.2%. The taxable value as of January 1, 2016 (used in calculating millage rates for FY 2018) is $176.8 billion, an increase of $11.7 billion, or 7.1% over last year’s valuation, including new construction of $2.7 billion and the revaluation of existing property. This is a new record high since the peak back in FY 2008. All property values and rollback calculations are based on the preliminary tax roll submitted by the Property Appraiser on July 1. Property values are projected to increase 5% - 7% for the next few years.
Taxable Values History (in billions)
$180
$176.8
$170 $165.1
$160 $152.7
$150 $139.6
$140 $130 $125.4 $130.3
$120 2012 2013 2014 2015 2016 2017
2