Budget Highlights

All Funds Highlights

The fiscal year 2023/24 total expenditures and reserves for all funds is $264,269,880, including $106,272,513 in personnel, $47,021,276 in operating, $31,786,858 in capital outlay, $10,873,265 in operating transfers, and $6,906,532 in debt service. Reserves total $61,409,435. The significant components of reserves include $26,000,000 in unassigned reserves, $2,005,227 for economic development and $3,574,793 for budget stabilization.

Revenues and non-revenue sources for FY 2023/24 total $264,269,880. Ad valorem taxes total $89,080,958 and are the single largest source of revenues for all funds, comprising 33.7% of all revenues/sources of the City’s budget. The total estimated available beginning balance of all funds combined is $77,259,970 and accounts for 29.2% of total sources of funds. The next largest category of revenue for the City are charges for services at $39,403,686, which comprise 14.9% of total revenues and sources of funds. Other revenues consist of the following: intergovernmental revenues totaling $13,313,059; licenses and permits of $8,279,000; impact fees totaling $11,702,000; and other miscellaneous revenues totaling $25,231,208.

General Fund Highlights

General Fund revenues and non-revenue sources total $178,221,011. This is inclusive of an estimated beginning balance available of $48,178,602. Ad valorem tax revenues comprise the largest share of General Fund revenue, at 50% of all revenues and sources of funding.

General Fund expenditures and reserves are balanced with total revenues and sources at $178,221,011. Excluding reserves of $33,395,844 expenditures consist of the following categories:

  • $82,828,122 - Personnel
  • $34,381,944 - Operating
  • $16,787,000 - Capital Outlay
  • $ 3,328,100 - Debt Service

Projected unassigned reserves total $26,000,000, law enforcement reserves total $1,156,179, and reserves for economic development and budget stabilization total $2,005,227 and $3,574,793 respectively. An additional $659,645 is restricted for other purposes.

General Fund Budget Comparisons

A summary comparison of the General Fund Adopted Budget for fiscal year 2023 and Proposed Budget for fiscal year 2024 is shown here. The amounts are the original budgets prior to any carry forward of expenditure obligations.

Revenues and Sources Budget Comparison

The chart and table below provide a more detailed comparison of the adopted FY 2023 and FY 2024 Proposed Budget. Ad valorem tax revenue is up, increasing to $89,080,958 from $79,546,451. Other revenue and transfers/other sources are projected to increase to $40,961,451 from $35,690,907, due to projected new development and the continued growth in the city's western boundaries. Overall, excluding beginning balances and transfers/other sources, revenues have increased by $12,302,791, or 10.76%, due primarily to the following: increases in ad valorem taxes of $9,534,508 from increased property valuations and an increase in licenses and permits of $923,070 due to the projected new development to occur. It is important to note that amended, adopted, and proposed budget numbers include Beginning Fund Balance amounts, while actual and estimated actual do not. This is because actual amounts reflect only revenues recognized each year in accordance with Generally Accepted Accounting Principles; Beginning Fund Balance represents resources received and recognized in prior years as revenue but are available for appropriation in future years.

Where is the Additional Tax Revenue Going Next Year?

The additional tax revenue of $9,534,508 generated next fiscal year, alone, is insufficient to cover the increases in personnel, operating and capital outlay expenditures of $20,251,391. Additionally, a transfer of $7,500,000 to other funds must also be funded. When combined, the additional funds required to balance the FY 2024 budget total $14,788,802. At the proposed millage rate of 5.17, an additional $14,788,802 is being reduced from Budget Stabilization reserves. These funds will be allocated for one-time, non-recurring capital expenditures, aligning with the permissible utilization of reserves as stipulated in the city's financial management policies ensuring responsible and strategic use of the city's financial resources.

Trash Collection

The City does not charge for curbside garbage or trash collection. The only fee paid by the residents for these services is to the Palm Beach County Solid Waste Authority for disposal through a non-ad valorem assessment on their tax bills. The City pays the contractual fees for collection and recycling services from ad valorem revenues.

Other Fees and Charges

Continuing the City Council's long-standing policy, there are no utility service taxes, storm water, or fire assessment fees or charges levied by the City of Palm Beach Gardens.

Expenditures and Uses Budget Comparison

Personnel costs have increased from $78,166,308 to $82,828,122, and operating costs have increased from $29,855,157 to $34,381,944. Transfers have increased from $0 to $7,500,000, while projected ending fund balance has decreased from $49,828,389 to $35,395,844, and capital expenditures have increased from $3,674,210 to $16,787,000. Debt service has been decreased by $207,536. Excluding capital, transfers and reserve balances, expenditures have increased by 8%. It is important to note that amended, adopted, and proposed budget numbers include Reserves, while actual and estimated actual do not. This is because actual amounts reflect only expenditures recognized each year in accordance with Generally Accepted Accounting Principles; Reserves represent funds that are held for restricted purposes or may be reallocated for specific purposes throughout the fiscal year.

Other Funds Highlights

The following section contains brief highlights of the City's other budgeted funds, including: Special Revenue Funds (Gas Tax, Golf, Recreation, and Workforce Housing); Impact Fee Capital Project Funds (Mobility, Recreation, Road, Fire, Police, and Public Facilities); One-Cent Surtax Fund; and Internal Service Funds (Fleet Maintenance and Self-Insurance Fund).

For more detailed information on each fund's projected revenues and expenditures, please see the Budget Summary section of the FY 2023/24 Budget Proposal.

Gas Tax Fund Revenues and Expenditures

This special revenue fund is used to account for the receipt of local option gas taxes, which are legally restricted for transportation related expenses. Total estimated newly generated revenue for fiscal year 2024 is $952,200. The total projected fund balance carried forward is $722,230.

Total expenditures are $1,282,786 and include the following: $600,000 for street paving projects; $275,000 for street lighting; $60,000 for roadway striping; $15,000 for various equipment; $63,000 for street sweeping; $35,000 for streetlight repairs; $27,000 for debt service, and $8,179 for street vehicle maintenance. In addition, $200,000 has been set aside in contingency for FEC crossing maintenance.

Recreation Fund Revenues and Expenditures

The City has established a dedicated special revenue fund to track the program-generated income derived from its diverse recreational activities. The fees collected have been earmarked by the Council for the exclusive purpose of operating the Special Revenue Recreation Fund. Total estimated operating revenues are $7,458,809 and include a transfer from the General fund of $2,500,000 necessitated by the temporary shutdown during the construction of the new Burns Road Community Center.

Operating expenditures total 8,108,763 and projected ending reserves total $65,291.

Golf Fund Revenues and Expenditures

This special revenue fund is used to account for the receipt of user fees, which, through the budget adoption ordinance, have been committed by Council for the operation of the Special Revenue Golf Fund. The projected fund balance carried forward is $855,880, and current year operating revenues total $7,056,643. Revenues have been increased due to the opening of the new par-three golf course.

Operating and capital expenditures total $6,205,207 and include additional costs to operate the new par-three course that is scheduled to begin operations in Summer 2023. The projected ending reserve balance in FY 2023 is $1,707,316.

Workforce Housing Fund Revenues and Expenditures

This new special revenue fund is used to account for the revenues and expenditures of the workforce housing program to be developed by the City. The total projected fund balance carried forward is $5,550,885, which consists of contributions from the developers of Avenir and Arcadia.

There are no projected expenditures for next fiscal year, as the program is still under development. The projected ending reserve balance is $5,550,885.

Capital Project Funds Revenues and Expenditures

The City accounts and budgets for nine Capital Project Funds. Seven of these funds are funded primarily through Impact Fees collected from developers at time of issuance of building permits. The City collects impact fees for the following capital project funds: Mobility, Recreation, Road, Fire, Police, Public Facilities and Art. Total estimated revenues are calculated using current and projected development in the City. Based on current development projections, no impact fees are anticipated for the Art Impact Fund. Total estimated impact collections in FY 2024, based on an analysis of current and projected development, are as follows:

  • $6,438,671 - Mobility
  • $1,246,370 - Road Impact
  • $2,147,466 - Recreation
  • $ 674,297 - Fire
  • $ 609,469 - Police
  • $ 585,727 - Public Facilities

Proposed fiscal year 2024 budgeted capital projects for all Impact Fee Funds total $14,283,146. Below is a list of the proposed projects for 2024. Additional information on Capital Improvement Projects for all funds can be found in the Five-Year Capital Plan section of this budget.

One-Cent Infrastructure Sales Surtax Fund

This capital project fund was established in FY 2017 to account for the proceeds of the recently enacted one-cent infrastructure sales surtax. The estimated available balance for projects that will be carried forward from FY 2023 to FY 2024 is $3,778,735. Total projected newly generated revenue is $3,515,000 and includes one-cent infrastructure sales surtax revenue of $3,500,000 and interest income of $15,000.

When the one-cent sales surtax was implemented in 2017, it was estimated to generate an average of about $3,350,000 per year over the life of the tax. Actual collections have exceeded this amount each fiscal year since implementation and this trend is forecasted to continue next fiscal year, as the estimate of $3,500,000 for FY 2024 exceeds the original expectation by $150,000, or 4.4%.

Projected expenditures total $3,342,225 and consist of the annual debt service on the Series 2017 Public Improvement Bonds. The projected ending reserve balance of the fund is $3,951,510 and are being held in reserve to pay debt service.

Fleet Maintenance Fund Revenues and Expenditures

The purpose of this fund is to manage the City's vehicle maintenance facility operations. The charges billed to various City departments amount to $6,086,115, while miscellaneous revenue generated reaches $915,000. The increase miscellaneous revenue is primarily attributed to the successful implementation of the City-wide Enterprise Lease program, which resulted in the return of vehicles and a significant profit gain. The total projected fund balance carried forward is $752,041.

Total projected expenses for the Fleet Maintenance Fund are $7,243,850 and include $3,255,699 for the City-wide Enterprise Lease program and $297,412 for various equipment replacement. The projected ending reserve balance is $584,306.

Self-Insurance Fund Revenues and Expenditures

This internal service fund is used to account for the operation of the City’s self-insured health benefits program. Total revenues equal $14,186,035 and include charges for services of $13,581,035. Funding for FY 2024 has been increased in line with projections prepared by the City’s actuary, considering the recent claims trend of the program. With this change to the funding formula, the projected end of year balance in the Fund is $6,962,373, which is approximately eight months’ total claims.

Total projected expenditures for the Self-Insurance Fund are $14,186,035 and consist of medical claims, reinsurance and life insurance premiums, onsite medical clinic, and capital expenses.