RPB Unveils $35 Million Spending Plan For FY 2015

BY CHRIS FELKER

The Royal Palm Beach Village Council got its first look Tuesday at a proposed budget for Fiscal Year 2015. The $35 million spending plan would keep the village’s tax rate the same but still allow it to expand services with a modest boost in spending, since rising property values will mean more revenue.

Village Manager Ray Liggins’ budget message noted that the council’s original intent was not to increase the tax rate, a job made easier because total appraised property values have jumped by about 9 percent, to more than $2 billion.

Liggins also anticipated smaller bump-ups in state shared tax revenues and other income. But to finance several added staff positions, the budget also taps the village’s Tax Rate Stabilization Fund to the tune of about $250,000, a move the council previously authorized.

The tax rate would remain at 1.92 mills, or $1.92 per $1,000 assessed property value after any homestead exemptions, while the village stormwater utility fee would also remain unchanged, at $4 per residential unit.

Under the spending plan, seven additional employees would be hired so the Parks & Recreation Department can increase its level of service, mainly to staff the newly expanded Royal Palm Beach Commons Park, Liggins said.

“The level of service in parks is being increased with the addition of a general maintenance worker fully dedicated to Veterans Park… and six facility attendant positions, mainly dedicated to Commons Park, to have a coverage of at least two people at the park at all times when it is open to the public,” he said. “The cost of the additional personnel is $240,000 a year.”

That amount includes a full-time Geographic Information System technician added for the public works and engineering departments to assist with the Federal Emergency Management Agency’s Community Rating System program, under which floodplain maps are being produced, in an effort to keep village residents’ flood insurance premiums as low as possible.

“The strategic planning items incorporated into the budget, [include] just under 150 action items for the staff to work on in the coming five years,” Liggins said.

Finance Director Stan Hochman said the 2015 budget totals $34,933,029, up just under $1.9 million from 2014, or 5.7 percent.

“The economy has been rebounding, and it has been rebounding very well,” Hochman said, adding that the additional revenues from the economic rebound have made budgeting easier.

He showed a slide that put the projected 2015 village tax for a home assessed at $135,000 (less a homestead exemption) at $163; for a $190,000 home at $269; and for a $245,000 home at $374.

The budget includes small raises for village staff and other increased costs. “Merit adjustments are being programmed at an average of 2 percent for all employees, as well as a cost-of-living adjustment of 1.4 percent based on the calculation of a 12-month running average,” Hochman said.

Based on market projections, medical insurance premiums will also increase.

“Our Stormwater Utility Fund is at $955,000,” Hochman said. “We have our stormwater utility fee on the revenue side of 78 percent and reserve at 22 percent. This is the first year there has actually been a carryover in this fund, and that carryover is set aside, and in future years will help fund capital [improvements] in that fund.”

Councilman Fred Pinto asked Hochman about lowering the budget to the rollback rate — the rate at which the village’s tax income next year will be same as the current year, lowering the tax rate to correct for property values increases. “What is the rollback rate?” he asked.

Hochman responded that the rollback rate would be 1.74 mills — 0.18 mills less than the proposed unchanged tax rate.

“And what would be the downturn in tax revenues if we went to the rollback rate?” Pinto inquired.

Hochman said he didn’t know.

“Could we look into that?” Pinto queried. “I’d like to know what that number is. And the reason why I’m asking is, although we’re holding our millage rate flat, because the property values have increased, at the end of the day, taxpayers would be paying more dollars. So I’d like to know what the dollar difference is between the rollback rate versus staying flat at the current millage rate.”

Hochman said he would get the information.

“But I do want to say this,” he added. “As you’re aware, we’re tapping the rate stabilization fund for $250,000. Anything else we do, unless we eliminate expenditures, is going to tap that fund for more money. And the council in the original direction told us when we set up the $5.5 million [rate stabilization fund], you will use that money before you do anything to reduce the tax rate. That was stated last year.”

Pinto insisted that he just wanted to see the numbers and wasn’t questioning Hochman’s integrity.

“I’d like [to see the numbers] if nothing else for the sake of transparency, [for] when I go to Publix next week and get asked a question in the meat aisle, how much more money will we be collecting in taxes from our residents even though we’re keeping our millage rate the same,” Pinto explained.

Later in the meeting, Hochman said that he had calculated the drop at $367,000.

Liggins said that the only significant difference in the council’s budget was that $50,000 was added for a village lobbyist and $4,000 for four additional $1,000 scholarships.

“Both are consistent with our strategic plan and direction from the council,” he said, noting a few additions in his own budget, some of which he said he would bring back to the council in coming weeks because they are additions for this fiscal year.

In brief remarks before the budget hearing, State Rep. Mark Pafford (D-District 86) noted the contrast between the Florida Legislature hastening to pass the state budget in a matter of weeks with the time a municipality, such as Royal Palm Beach, takes in analyzing tax revenue and needs — some six months from when the village manager first meets with department heads to final adoption.

“The [2015] budget is one of the largest in Florida’s history, at $77.1 billion, and we knocked that out in… let’s say four weeks, 30 days,” Pafford said. “I find it interesting that cities do so much better than the State of Florida in terms of what we do and analyze budgets. You’ve got a $35 million budget, and you’re going to take more than six months to actually take a look at that. In terms of the budget, you do a very good job… I wish the state did better in terms of how we do things.”

The council will meet Thursday, July 17 to tentatively approve the “Truth in Millage” resolution for the Palm Beach County Property Appraiser, which sets the maximum millage rate and public hearings. Then the budget will go through revisions for four weeks. The public hearings are set for Sept. 4 and Sept. 18, with the final budget being enacted at the start of the new fiscal year on Oct. 1.