All Funds Highlights
The fiscal year 2022/23 total expenditures and reserves for all funds is $236,074,948, including $100,042,747 in personnel, $40,716,820 in operating, $6,680,210 in capital outlay, $871,004 in operating transfers, and $6,925,167 in debt service. Reserves total $80,839,000. The significant components of reserves include $26,000,000 in unassigned reserves, $2,005,267 for economic development and $19,885,083 for budget stabilization.
Revenues and non-revenue sources for FY 2022/23 total $236,074,948. Ad valorem taxes total $79,546,451 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 $76,175,467 and accounts for 32.3% of total sources of funds. The next largest category of revenue for the City are charges for services at $35,874,079, which comprise 15.2% of total revenues and sources of funds. Other revenues consist of the following: intergovernmental revenues totaling $12,258,850; licenses and permits of $7,355,930; impact fees totaling $5,740,284; and other miscellaneous revenues totaling $19,123,887.
General Fund Highlights
General Fund revenues and non-revenue sources total $165,059,701. This is inclusive of an estimated beginning balance available of $49,822,343. Ad valorem tax revenues comprise the largest share of General Fund revenue, at 48.2% of all revenues and sources of funding.
General Fund expenditures and reserves are balanced with total revenues and soures at $165,059,701. Excluding reserves of $49,828,390, expenditures consist of the following categories:
- $78,166,308 - Personnel
- $29,855,157 - Operating
- $ 3,674,210 - Capital Outlay
- $ 3,535,636 - Debt Service
Projected unassigned reserves total $26,000,000, law enforcement reserves total $1,026,535, and reserves for economic development and budget stabilization total $2,005,267 and $19,885,083, respectively. An additional $911,505 is restricted for other purposes.
General Fund Budget Comparisons
A summary comparison of the General Fund Adopted Budget for fiscal year 2022 and Proposed Budget for fiscal year 2023 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 2022 and FY 2023 Proposed Budget. Ad valorem tax revenue is up, increasing to $79,546,451 from $71,732,579. Other revenue and transfers/other sources are projected to increase to $35,690,907 from $35,103,342, due to recovery from COVID-19 and projected development. Overall, excluding beginning balances and transfers/other sources, revenues have increased by $8,651,443, or 8.18%, due primarily to the following: increases in ad valorem taxes of $7,813,872 from increased property valuations and an increase in licenses and permits of $1,117,152 due to the projected new development to occur. These increases are offset by an overall reduction in intergovernmental revenues due to the ARPA grant reimbursement that was received in FY 2022. 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 $7,813,872 generated next fiscal year, alone, is insufficient to cover the increases in personnel and operating expenditures of $8,942,862. Additionally, an increase in debt service of $287,774, a loss of $250,006 in transfers from other funds, and a budgeted shortfall of $2,030,391 from FY 2022 must also be made up. When combined, the additional funds required to balance the FY 2023 budget total $11,517,080. At the proposed millage rate of 5.32, an additional $6,047 is being added to reserves.
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 utilitiy 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 $72,130,961 to $78,166,308, and operating costs have increased from $26,947,642 to $29,855,158. Transfers have decreased from $700,000 to $0, while projected ending fund balance is increased from $39,647,938 to $49,828,389, and capital expenditures have decreased from $5,839,847 to $3,674,210. Debt service has been increased by $287,774 due to capital lease purchases. Excluding capital, transfers and reserve balances, expenditures have increased by 9.02%. 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 2022/23 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 2023 is $954,550. The total projected fund balance carried forward is $647,292.
Total expenditures are $1,217,206 and include the following: $500,000 for street paving projects; $260,000 for street lighting; $60,000 for roadway striping; $20,000 for various equipment; $63,000 for street sweeping; $30,000 for streetlight repairs; $26,607 for debt service, and $7,599 for street vehicle maintenance. In addition, $250,000 has been set aside in contingency for FEC crossing maintenance.
Recreation Fund Revenues and Expenditures
This special revenue fund is used to account for program revenues generated from the various recreational activities offered by the City. These fees have been committed by Council for the operation of the Special Revenue Recreation Fund. Total estimated operating revenues are $5,563,707 and have increased due to the continued recovery post-COVID, as well as the opening of the new aquatic facility. However, it is projected that the total fund balance carried forward will be $2,081,335, which is enough to offset the revenue losses due to COVID-19.
Operating expenditures total $7,615,499, and projected ending reserves total $29,543. Due to the projected available fund balance, there is no transfer from the General Fund budgeted next fiscal year.
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 $1,867,842, and current year operating revenues total $5,853,750. Revenues have been increased due to the opening of the new par-three golf course.
Operating and capital expenditures total $6,056,758 and include additional costs to operate the new par-three course that is scheduled to begin operations in December, 2022. Although expenditures exceed projected revenues by $203,008, there is no transfer projected from the General Fund in FY 2023, as there is ample projected beginning fund balance to carry the operation until the new course is fully operational for a full fiscal year. The projected ending reserve balance in FY 2023 is $1,664,834.
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 $5,550,066, 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 $5,550,303.
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 2023, based on an analysis of current and projected development, are as follows:
- $2,385,540 - Mobility
- $1,139,925 - Road Impact
- $1,053,104 - Recreation
- $ 540,559 - Fire
- $ 379,035 - Police
- $ 242,121 - Public Facilities
Proposed fiscal year 2023 budgeted capital projects for all Impact Fee Funds total $2,313,000. Below is a list of the proposed projects for 2023. 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 2022 to FY 2023 is $3,659,052. Total projected newly generated revenue is $3,519,165 and includes one-cent infrastructure sales surtax revenue of $3,500,000 and interest income of $19,165.
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 2023 exceeds the original expectation by $150,000, or 4.4%.
Projected expenditures total $3,339,545 and consist of the annual debt service on the Series 2017 Public Improvement Bonds. The projected ending reserve balance of the fund is $3,838,672, and are being held in reserve to pay debt service.
Fleet Maintenance Fund Revenues and Expenditures
This internal service fund is used to account for the operation of the City’s vehicle maintenance facility. Total charges to City departments equal $5,001,374, and miscellaneous revenue totals $170,500. The total projected fund balance carried forward is $1,300,496.
Total projected expenses for the Fleet Maintenance Fund are $5,761,118 and include $2,253,310 for the City-wide Enterprise Lease program and $299,000 for various equipment replacement. The projected ending reserve balance is $711,252.
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 $12,825,025 and include charges for services of $12,220,025. Funding for FY 2023 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 $7,961,956, which is approximately ten months’ total claims.
Total projected expenditures for the Self-Insurance Fund are $12,824,507 and consist of medical claims, reinsurance and life insurance premiums, onsite medical clinic, and capital expenses.