PBG Watch to Discontinue Monthly Emails/Posts

PBG Watch will no longer be sending out summaries of the upcoming PBG City Council agendas or meeting summaries.

When formed our mission statement was:

PBG Watch is a coalition of concerned citizens of Palm Beach Gardens, Florida, who have come together to observe and report on the decisions of the City Council. We will praise where justified and criticize where warranted. We will also educate and mobilize a response to actions that we feel are not in the best interest of the citizens.

Our first post was about proposed charter changes, on June 8, 2012. At the time there were a lot of active issues, heavy citizen involvement and most of the City Council meetings were well-attended. While the City published the council meeting agendas on the website, it was difficult to read. Council meetings were not video-recorded, there was no social media presence and the only way to observe the meetings from afar was to listen to voice recordings.

Much has changed over the last ten years:

• Term Limits were enacted
• Avenir and Alton – two remaining large areas have been planned and development is underway
• Purchasing and budgets have become more accessible on the website
• Voter participation and resident attendance at council meetings has waned significantly, decreased further during and after Covid.

The City has created many more avenues for the citizens to acquire information – via newsletters, its website, live-streaming and social media.

Here are ways that you can continue to get informed about the meetings and City activities:

• City of Palm Beach Gardens website Agenda Page
• City of Palm Beach Gardens social media sites
  • Facebook 
  • Youtube
• City of Palm Beach Gardens Livestream Page

Sign up for  email notifications under Newsflash at this link: https://pbgfl.com/list.aspx

In addition, Joel Englehardt, via his Ongardens.org website, is writing in-depth pieces on various issues concerning the Gardens. I encourage you to sign up for his notifications or go to his website frequently.

We will keep the PBG Watch website and facebook page online for a period of time for historical reference and for occasional posts such as those by former Mayor Mike Martino in his Martino Minute.

Remember – we get the government we deserve. KEEP WATCHING!

Martino – City Council vs City Manager – Who Is In Charge?

If you haven’t taken an interest in the how our Palm Beach Gardens City government has been conducting its business as of late, perhaps, it’s time you should. As the City Charter states: 

“The form of government of the City of Palm Beach Gardens shall be that known as the Council-Manager form of government”. “Residents are served by five non-partisan elected officials who are the policy making body of the City. These elected officials – the City Council – in turn, appoint the City Manager who is tasked with overseeing all administrative duties and the daily business operations of the City.”

You only have to listen to or view the videos of the October and November 2022 City Council meetings and you may ask yourself, as I do, the following question. Has the City Council become a body of individuals that are subservient to the City Manager/Administration rather than – the City Council – as the City Charter mandates?

As a 57-year City resident and past Mayor and Council member it pains me to make the following assessment. In my opinion, since the year 2000, our local City government has gradually morphed into a Manager-Council form of local government. This transition has been a slow but steady cultural change, particularly, in the conduct of the processes of Gardens governance. It is in stark contradiction with the City Charter’s basic tenet, Council-Manager form of government, as referenced above. Was this purposeful? Maybe. Is there blame? Probably; possible candidates could be City Council members since 2000, the current City Manager, subtle Charter changes, and we residents for not paying attention and not attending Council meetings regularly.

Since 2000, how has this cultural change happened? Some of my perspectives are the following….

• The City Councils have moved away from transparency and communication with the public
• Staff and generous salaries (including the Manager) has ballooned in all departments
• Only one (1) monthly regularly scheduled meeting with the public, down from two (2)
• Zero (0) regularly scheduled workshop meetings with the public, down from two (2)
• No workshops results in limited or no deliberation with elected members as a body/council
• No workshops results in  more dependence on staff, less input as a Council into city business
• Less Council work, salary raise, $10,000 to $35,000, & $30,000 in medical/pension benefits
• Abandoning Council traditions; i.e., not naming facilities after city officials and personalities
• Less than adequate review and oversight with no decipherable contract with City Manager
• City Manager assumes responsibilities that clearly reside in the purview of the City Council
• City Manager sets most, if not all of the agenda items for City business, City Council does not
• City Manager is contemptuous of workshop meetings, thus, none are regularly scheduled
• City Manager appears to selectively inform Council of important City business

Do we truly have a Council-Manager local government with the elected City Council members as the absolute hierarchy of our City governance? That is a question that should be asked. Without the City Council recognizing their absolute prominence in the organization of our City government and the City Manager understanding his Administrative position, my opinion and answer is NO.

No Sportplex for the Gardens North County District Park

New news for the City came at the very end of the November 3rd City Council meeting when Council Member Marciano suggested having a workshop for the newly available remaining undeveloped parcel in the North County District Park. Apparently, the sign that had been visible on the corner for several years advertising the future Sportsplex was no longer there. Through the ensuing discussion it became clear that the proposed Sportsplex, to be developed by Palm Beach North Athletic Foundation, had not secured funding and was no longer a viable proposal. The foundation had been awarded the contract to build the facility in Ordinance 60, 2019. Several other entities are coming forward with fully funded proposals which the administration will review before bringing them to the Council.

Second Reading and Approval of Ordinance 13, 2022 – which would have raised the purchasing sign-off authority of the City Manager without Council approval, was delayed until the December meeting at the request of Mayor Reed.

All other Ordinances and Resolutions on the Agenda were passed 5:0. These included two new communities in Avenir as well as the new clubhouse in Frenchman’s Creek.

Public Comment was made by:

• Pamela Payne – CEO of the Homeless Coalition of Palm Beach County – The City had a proclamation in honor of National Hunger and Homelessness Awareness Week
• Richard Ormond of Garden Isles wants city to take a more proactive role in code enforcement in neighborhoods without HOAs as well as protection against Air BNB type of businesses in residential areas. City Manager Ferris said they’ll look into how the City can help.
• Dr. Tracy Pellet – Provost and Dean of Palm Beach State College, Gardens Campus – introduced himself, gave greetings from President Ava Parker.

The City Manager Report included:

• Brief presentations by Fire Chief Keith Bryer and Chief of Police Clint Shannon on the significant assistance both departments have been rendering to areas hard hit by Hurricane Ian. All the deployments of Garden’s staff have been on a voluntary basis with the teams working under difficult conditions. Kudos to all for aiding Florida’s hard hit communities.
• City Manager Ferris also spoke to Operation Sister City assistance to Wauchula – where their 91 employees and families were especially hard hit by flooding from Hurricane Ian. The Garden’s sister city of Calloway was aided in the past and is ‘paying it forward’ by donating $15K towards Wauchula and Ferris is spearheading the effort to provide $35K to Wauchula including Calloway’s assistance, $10K donated by Christ Fellowship and (at the end of the meeting by a vote of the Council) $10K from the City Council budget. In addition, the City will be providing deliveries of personal items/necessities, Christmas gifts for children and ability for the public to donate via Amazon wish-ists. Look to the City website or facebook page for future links to help!

The December City Council meeting will be held on December 14 at 6pm; the January meeting will be conducted on January 12th 2023.

 

Next PBG City Council on Thursday 11/3 at 6pm

The next City Council Meeting will be held in City Hall on Thursday, November 3rd at 6pm. You can watch it livestreaming either during or after the meeting, if you are unable to attend.

Announcements and Presentations include:

• Recognition of PB North Chamber of Commerce
• Partnership Presentations from the PBC Sports Commission and Cressey Sports Performance

Consent Agenda includes:

• Resolution 57, 2022 – Select a date for the January 2023 regular City Council meeting – Thurs Jan 12, 2023
• Resolution 73. 2022 – Authorizing the Mayor to execute any and all documents deemed necessary to abandon an ingress/egress easement.
• Resolution 75, 2022 – Consideration for Approval: A Resolution approving the plat for Avenir — Pod 15 within the Avenir Planned Community Development (PCB).
• Resolution 77, 2022 – Agreement with the Palm Beach County Supervisor of Elections (SOE) for Vote Processing Equipment Use and Election Services Agreement – (note – regarding March Municipal Elections – currently the candidates for Groups 1,3,5 have no opponents which would deem them automatically elected after deadlines have passed)
• Resolution 78, 2022 – Appoint the Supervisor of Elections as the single canvassing board for the March 14, 2023, Municipal Election.
• Purchase Award – Facilities Management Contractors Program – Openly Competed – 5 year contract with option to renew for 5 years – $10 million – “This Agreement will establish a pool of contractors that will provide facilities management services on an as needed basis to the City.”

Public Hearings and Resolutions – New Business

• Resolution 65, 2022 – Site Plan Amendment for the Frenchman’s Creek Clubhouse and Recreation Site – A request by Frenchman’s Creek, Inc. to construct a new 93,155-square-foot clubhouse building and parking lot, and reconfiguration of sport courts within the Frenchman’s Creek Planned Community Development (PCD).
• Resolution 66, 2022 – Site Plan approval for a 250-unit residential townhome subdivision within the Town Center District (Parcel B) of the Avenir Planned Community Development (PCD)
• Resolution 67, 2022 – Site Plan approval for a 144-lot single-family subdivision within Parcel A (Pod 20) of the Avenir Planned Community Development (PCD)
• Resolution 79, 2022 – Operation Sister City — City of Wauchula, Florida.

For Second Reading and Adoption:

• Ordinance 9, 2022 – Amending Chapter 74. Utilities. by repealing Article IV. Water Shortage Regulations in its entirety and readopting Article IV. as revised and with new “landscape Irrigation Conservation Regulations,” to provide far local implementation of the mandatory year-round landscape Irrigation Conservation Measures Rules of the South Florida Water Management District
• Ordinance 10, 2022 – Amendment to the City’s Land Development Regulations, Chapter 78, to create the Transit Oriented Development (TOD) Overlay District.
• Ordinance 11, 2022 – A City-initiated request to amend Chapter 78 – Land Development, Article III — Development Review Procedures, Section 78-54 — Public Notice, Table 4: Required Public Notice to be consistent with the City’s Charter and State Statutes and to allow first-class mailing for all petition types
• Ordinance 12. 2022 – Amending Chapter 66. Taxation. at Article VI. Economic Development Ad Valorem Tax Exemption by repealing Section 66-310. Sunset provision. and readopting same, as revised, to renew the City Council’s authority to grant Property Tax Exemptions to certain qualified businesses pursuant to state law and the City.
• Ordinance 13, 2022 – Amending Chapter 2. Administration by repealing Section 2-294. — Bidding threshold., and readopting same, as revised, in order to amend certain purchasing limits and remove certain reference to state law. (See our summary from the October City Council Mtg.)
• Ordinance 14, 2022 – Amending the City of Palm Beach Gardens Budget for the Fiscal Year Beginning October 1, 2021 and ending September 30, 2022.

Please check the agenda before the meeting for additions or modifications.

Northlake Fiasco and Is $1 Million a Lot to You?

Much of the very long October 6th PBG City Council meeting was spent discussing Palm Beach County’s Five Year Road Plan – which was on the City Manager portion of the agenda. Included in the plan is a proposed $500k to study widening Northlake Boulevard to 8 lanes. Several people made public comment, Sal Faso, President of NCNC spoke on behalf of several organizations and communities as well. All were in agreement that widening Northlake, and wasting $500k tax dollars and studying it was a non-starter. Joel Engelhardt of Ongardens wrote an in-depth piece covering the proposal and discussion entitled “Northlake widening study pits county vs city. Again.”

Vice Mayor Litt pulled Resolution 64, 2022 from the Consent agenda and the Council had considerable discussion on whether the report “Review of 2022 Key Strategies and Initiatives” from PFM Group Consulting LLC, which had been the subject of the August 17 Workshop, should be adopted as a Council Strategic Plan. Interestingly – none on the Council had input to the report, nor did any residents or other interested parties and the data used was about two years old as the study was delayed due to Covid. Nevertheless, after discussion – the report was adopted by the Council 5:0. The report was in the Resolution and can also be found here.

First Reading of Ordinance 13, 2022  raising the threshold for purchasing limits not needing Council Approval from the current $65K to .5% of the City Budget or $1 Million had a lot of discussion. Km! Ra, Purchasing Director, City Manager Ferris and City Attorney Max Lohman were very much in favor of the move as were Mayor Reed and Council Member Woods. Council Member Tinsley was very much against the move, Council Member Marciano had some trepidations and Vice Mayor Litt was searching for a compromise that might keep transparency in the process. Km! Ra’s primary argument was that in Purchasing ‘best practices’ if a line item budget has already been approved by a council, there is not further need for approval by that council in the implementation of that budget; his ideal situation would be to not have any limits but suggested that the .05% or roughly $1 million would be a “baby step” in the direction of this “progressive ideal.”  See the discussion here.  On first reading the vote was 4:1 with Tinsley opposed. 

PBG Watch is also opposed and here are key points why stated in an email to Council on Oct 12:

You are the elected officials given the public’s authority and trust – not the City Manager and Purchasing Department.

Consider:

• You perhaps were not given a thorough answer to the question – what are thresholds requiring board/council approval in other municipalities?  All of the following have larger populations and budgets than does PBG.   
  • PBC limit is $200K – (see code here)
  • Boca Raton limit is $100K – (see code here)
  • Boynton Beach limit is $100K – (see recent ordinance here)
  • Delray Beach limit is $65K – (see code here)
  • Jupiter limit is $50K – (see code here)
• 20 points on 200 points criteria for purchasing organization excellence awards’ is not a reason to make a significant policy change
• One of the cited issues was speed of action to obtain approvals.  Rather than ceding your responsibility and authority to the administration – perhaps you should consider ways to speed the approval process:
  • Have more frequent meetings?
  • Have an email and/or online or zoom way to obtain your approvals meeting sunshine and notification,  to proceed
  • Rather than providing an informational list of upcoming bids (as was suggested by one of you at your meeting) – perhaps have the quarterly list of upcoming bids for you to pre-approve threshold-wise with your votes.
• While you may have utmost confidence in the current position holders in purchasing and City Manager at this time – they will not always be the holders of these positions nor will you be on the council.  Yes – you are setting policy and one council person’s glib answer about ‘if you don’t like what the City Manager is doing – just fire him’ is not policy!
• Inflation is clearly here – but rather than set a ‘baby-step’ of $1 million dollars – adjusting the $65K upward is clearly needed – but not 15x in one step and not as a blanket policy.

Also on the agenda:

• Recognition of Jim McCarten’s retirement as General Manager of the Gardens Mall and his contributions to the community over the last 33 years
• Consent Agenda passed 5:0
• City Manager report, beside Northlake Blvd Widening Study covered a short summary of the assistance our Fire/Rescue and Police Departments are providing to the hard hit communities due to Hurricane Ian, and in November the Council will hear from Scipps and Jupiter Medical Center for future plans for a research hospital on the Briger tract.
• All other Ordinances and Resolutions passed 5:0 and there was no City Attorney Report.

Next PBG City Council Mtg on Oct 6 at 6pm

The next City Council Meeting will be held in City Hall on Thursday, October 6th at 6pm. You can watch it livestreaming either during or after the meeting, if you are unable to attend.

Announcements and Presentations include:

• Honoring Jim McCarten for his service to the community
• Agreement Allowing Pedestrian Crossing Rapid Flashing Beacon Signs – this corresponds to Resolution 63, 2022 on the Consent Agenda “Approving the Local Agency Program Agreement with the Florida Department of Transportation (FDOT) for the construction of activated in-ground rectangular rapid flashing beacons, flash warning and static regulatory signs at twelve (12) existing school/pedestrian crossings at various locations in the City in the amount of $525,845.00,”

City Manager Report lists as a subject Palm Beach County’s Five-Year Road Program

Consent Agenda Includes:

• Resolution 53, 2022 – Downtown Palm Beach Gardens Miscellaneous Amendment Consideration for Approval: A request for approval to modify Condition of Approval Number 83 in Resolution 42, 2021 for Downtown Palm Beach Gardens within the Regional Center Planned Community Development (PCD).  Applicant requests an amendment to Resolution 42, 2021 to modify Conditions of Approval Nos. 83.c and 83.d regarding surety requirements for traffic improvements, if determined to be warranted by Applicant’s traffic monitoring. The modifications will clarify the timeframes of the traffic monitoring and when the surety must be posted.
• Resolution 56, 2022 – Lease Purchase of Three Medium Duty Ambulances for the Fire Rescue Department from South Florida Emergency Vehicles, LLC, under a Contract with Sourcewell Group Purchasing Organization Cooperative Purchasing Program and Leasing 2, Inc., for a period of seven years. Total contract price: $2,2 million with 7 annual payments of 310K.
• Resolution 59, 2022 – Declare the results of the August 23, 2022, Primary Election, Authorization to Grant Economic Property Tax Exemptions in accordance with the State Constitution.
• Resolution 60, 2022 – Consideration for Approval: A Resolution approving the plat for Panther National at Avenir Pod 12 within the Avenir Planned Community Development (PCD)
• Resolution 63, 2022 – referenced above during Announcements and Presentations
• Resolution 64, 2022 – During the August 17, 2022, Council Workshop, City Council directed staff to bring the PFM Report back at a later Council Meeting to consider adopting the report as a Council Strategic Plan that will help streamline a vision for the City’s future. With a majority affirmative vote by City Council, Resolution 64, 2022 will be approved and adopted.
• Resolution 68 and 69, 2022 – Special Warranty Deeds to transfer certain surplus real property as described in the Special Warranty Deeds…The City acquired ownership in two strips of land abutting the east and west sides of Gardens Glen Circle via a County Deed issued by Palm Beach County on December 5, 2000. The subject strips of land are not used by the City, are surplus property, and only serve as buffers for the Gardens Glen right-of-way, which the City expends tax -payer dollars to maintain. As a result of negotiations, the property owners, David J. Levy and Vincent and Lesii McLaren have agreed to accept the land described in the Special Warranty Deeds, subject to certain deed restrictions.
• Purchase Award – Bleacher Covers for Lake Catherine Sports Complex – Piggyback/Access Contract – total contract value $150K
• Purchase Award – Transportation Services – Openly Competed – 5 Year term – $405.5K with no option to renew

Public Hearings- Ordinance/Resolutions:

• Ordinance 10, 2022 – A City -initiated amendment to the City’s Land Development Regulations, Chapter 78, to create the Transit Oriented Development (TOD) Overlay District. Background: The City accepted a Transit Oriented Development (TOD) Master Plan prepared by the Treasure Coast Regional Planning Council in 2018 with key recommendations for the implementation of TOD elements including Comprehensive Plan amendments and Land Development Regulations (LDR) amendments. The Comprehensive Plan amendments were adopted on September 10, 2020, with the adoption of Ordinance 10, 2020. This LDR amendment implements the provisions of the Comprehensive Plan amendments contained in Ordinance 10, 2020.
• Ordinance 11, 2022 – A City-initiated request to amend Chapter 78 – Land Development, Article III — Development Review Procedures, Section 78-54 — Public Notice, Table 4: Required Public Notice to be consistent with the City’s Charter and State Statutes and to allow first-class mailing for all petition types.
• Ordinance 12, 2022 – Amending Chapter 66. Taxation. at Article VI. Economic Development Ad Valorem Tax Exemption by repealing Section 66-310, Sunset provision. and readopting same, as revised, to renew the City Council’s authority to grant Property Tax Exemptions to certain qualified businesses pursuant to state law and the City.
• Ordinance 13, 2022 – Amending Chapter 2. Administration by repealing Section 2-294. — Bidding threshold., and readopting same, as revised, in order to amend certain purchasing limits and remove certain reference to state law.
• Ordinance 14, 2022 – Amending the City of Palm Beach Gardens Budget for the fiscal Year Beginning October 1, 2021 and ending September 30, 2022.
• Resolution 58, 2022 – Master Site Plan Amendment to the Panther National Master Plan Public Hearing and Consideration for Approval: A request by Centaur (Palm Beach) Owner, LLC for a master site plan amendment to the Panther National Master Plan to add 24 dwelling units and modify the boundary of the maintenance area within the lifestyle center parcel. The subject site is approximately 391 acres and is located in the northwestern portion of the development area within the Avenir Planned Community Development (PCD).
• Resolution 49, 2022 – Appointment of Regular Members and Alternate Members to the Art in Public Places (AIPP) Advisory Board.
• Resolution 50, 2022 – Appointment of Regular and Alternate Members to the Parks and Recreation Advisory Board.
• Resolution 51, 2022 – Appointment of Regular and Alternate Members to the Planning, Zoning, and Appeals Board.

Please check the agenda before the meeting for additions or modifications.

City’s Millage Lowered to 5.32%

The new tax-rate was lowered to 5.32% and the new Fiscal Year 2022/2023 budget raises about $7.8M in new taxes, up a 10.9% over last year’s adopted budget. Both the millage and new budget were approved/adopted on 2nd hearing 5:0 on Sept 22 after being also approved 5:0 at the Sept 8th initial City Council Meeting. Council Member Marciano, with the most in-depth city budget experience on the Council, has long sought to lower millage over the last several years and was pleased to finally have it happen in his last term.

While homesteaded properties will see lowered tax bills, those in non-homesteaded properties will see increases. Budget details can be viewed here.

 

 

 

 

 

The ten-year financial forecast assumes flat millage at the new 5.32%. Also of note is that there is no debt service millage and none assumed in the forecast.

Other items from the two September meetings:

• • Resolution 52, 2022 – passed 5:0 on 9/8 – approving and ratifying a collective bargaining agreement with the Police Benevolent Association for Police Officers, Sergeants, and Communications Operators employed by the City’s Police Department for Fiscal Years 2023- 2025.
  • Consent Agendas for both meetings passed 5:0

• • Public Comment
    • 9/8 – Two residents requested waivers regarding screening for roof-top a/c units. Their information was collected by staff;
    • Terence Davis, candidate for Florida House District 94 introduced himself
    • 9/22 – Tom Cairnes of the Gardens Mall, and PGA Corridor, spoke about upcoming PGA Corridor events

• City Manager Report:
  • 9/8 – National Suicide Prevention Month – a campaign to raise awareness called ‘Card My Yard‘ has placed various encouraging signage around the City
  • 9/22 – For the next two weekends there will be construction at the PGA Blvd entrance to the Turnpike in order to remove the toll booths. See details here.
• Items for Council Discussion:
  • • 9/8 – All on the council apparently received an email requesting a dog park for PGA National – discussion ensued regarding the difficulties and liabilities associated with dog parks. City Manager Ferris suggested the all wait until they see how the renovations at the Lilac Park dog park work out, specifically the artificial turf, and then raise the topic again in the future.
• City Attorney Lohman, on 9/8, gave a brief update on the suit between Palm Beach County and PBG regarding Mobility Fees and said that the City did not request oral argument.

Second of Two Sept City Council Mtgs on Thurs 9/22 at 6pm

The second FY 2022/2023 Budget Hearing will be held at PBC City Hall on Thursday Sept 22 at 6pm. Ordinance 7, 2022 at first hearing passed 5:0. Ordinance 7, 2022 and accompanying Resolution 30, 2022 will finalize and adopt the Budget. You can watch the meeting via  livestreaming either during or after the meetings, if you are unable to attend.

The Finance Department prepared a short update on the new budget  and the budget details can be viewed here.

Also on the agenda – Consent includes:

• Resolution 55, 2022 – A Resolution approving the plat for Panther National at Avenir Pod 14 within the Avenir Planned Community Development ( PCD).
• Resolution 61, 2022 – Approving a Letter of Agreement between the City’s Fire Rescue Department and the State of Florida’ s Agency for Health Care Administration for Public Emergency Medical Transportation – “Each year, the City is required to execute a Letter of Agreement to participate in the program. In those prior years, the program costs were within the City Manager’ s signatory authority. For fiscal year 2023, the City expects to transfer approximately $ 98, 549.64 to the State and receive reimbursements of $ 158, 664. 92 in return. “
• Resolution 62, 2022 – Authorizing the City Manager to Execute an Agreement between the City of Palm Beach Gardens, Florida, and Station Automation, Inc., DBA PSTrax, for Renewal of the Fire and EMS Asset and Inventory Control Software Agreement for the Fire Rescue Department. Five year contract – annual contract price $14K; Total Contract Price $72K

Please check the agenda before the meeting for additions or modifications.

First of Two Sept City Council Mtgs on Thurs 9/8 at 6pm

There will be two PBG City Council meetings in September due to the first and second public hearings of the 2022/2023 Fiscal Year Budget approval process. The two meetings will be held on Thursday Sept 8 at 6pm and Thursday Sept 22 at 6pm. The change in meeting days are to avoid conflict with other county budget hearings.  You can watch the meetings via  livestreaming either during or after the meetings, if you are unable to attend.

Announcements and Presentations:

• COLLECTIVE BARGAINING AGREEMENT WITH THE POLICE BENEVOLENT ASSOCIATION – the presentation is regarding Resolution 52, 2022 – A Resolution approving and ratifying a collective bargaining agreement with the Police Benevolent Association for Police Officers, Sergeants, and Communications Operators employed by the City’s Police Department for Fiscal Years 2023- 2025. Resolution 52, 2022 – on consent agenda – $4.745 million through 9/30/25

Consent Agenda  – in addition to Resolution 52, includes:

• Purchase Award: Bi-Directional Amplifier Program (Police Dept) – Piggyback/Access contract – upon completion – $265.5K
• Purchase Award: Fleet Leasing Program – Piggyback/Access contract – 2 year contract with option to renew for 1 year – $3 million
• Purchase Award: Office Furniture for City Hall (1st Floor) – Piggyback/Access contract – upon completion – no more than $200K
• Purchase Award: Planning & Zoning File Room Records Scanning Project – Piggyback/Access contract – upon completion – $239K

Public Hearings – Ordinances and Resolutions:

• Ordinance 7, 2022 – First Reading – Adopting the Budget for Fiscal Year 2022/2023
  • • “This is the first of two required public hearings to set the millage and adopt the budget for Fiscal Year 2022/ 2023.  On July 14, 2022, Council approved Resolution 29, 2022, setting the maximum tentative operating millage rate for FY 2022/ 2023 at 5. 3200 mills which is 4. 15 percent less than last year’ s rate of 5. 5500. The proposed operating millage of 5. 3200 is 8. 14 percent above the roll -back rate of 4. 9195.  Total sources for all funds are $ 236, 074, 948, consisting of total estimated balances carried forward of $ 76, 175,466 and projected total revenues of $ 159, 899, 482, Total sources of funds are balanced with projected total expenditures of $ 155, 235, 949 and ending reserves of $80, 838, 999, for a total use of funds of $236, 074, 948.  The second and final public hearing on the budget is scheduled for September 22, 2022,”
  • • See Fred Scheibl’s analysis “Proposed Tax Increase Accomplished with Lower Millage“.

Please check the agenda before the meeting for additions or modifications.

 

 

Proposed Tax Increase Accomplished with Lower Millage

The proposed 2023 PBG Budget raises about $7.8M in new taxes, up a 10.9% over last year’s adopted budget. See the Proposed Budget here.

With the millage at 5.32, down from the 5.55 it has been for the last 7 years, this is the eighth year that increases in property valuations and new construction have provided a painless increase in revenue. In 2015, the last year there was a millage reduction, ad-valorem revenue was $49M. This year’s $80M is a 62% increase over the seven years of flat millage.

Similar to last year, the 2023 budget needs to be thought of differently because excessive federal spending and money printing by the Federal Reserve has brought us a repeat of the inflationary environment of the ’70s. The Bureau of Labor Statistics tracks the “CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U)” monthly. In July of this year, that figure stands at 297 – up a whopping 8.8% over one year ago when it was 273. At that rate, we expect a 323 CPI in the middle of the 2023 fiscal year. As you will see in the TABOR comparison, the tax increase is justified in this environment with the Biden Administration continuing to print money like there is no tomorrow.

Projecting out the PBG population estimates from the Bureau of Economic and Business Research (BEBR at UFL), the Gardens population will be just shy of 61K in 2023, up about 1%. The TABOR multiple (Taxpayer Bill of Rights – inflation times population growth) is therefore about 9.8%.

Since 2005, the population of Palm Beach Gardens will have grown by about 45% (BEBR estimate – see below) to its estimated 2023 level of 61K.  Inflation, measured by the consumer price index, will be about 66%. Taken together, TABOR would suggest a growth in city spending and taxation of about 140%. (see graph below).

Over the same period (2005-2023), ad-valorem taxes grew 126% and total expenditures (budget less capital and transfers) grew 111%. Spending closely follows the TABOR line, and ad-valorem taxes is not widely divergent suggesting spending and taxation appropriate to a growing city.

It should be noted that ad-valorem taxes fund only a part of city expenditures, the rest made up from impact fees, fees for services, other taxes, intergovernmental grants, etc. and have varied from 66% of the total in 2005 to about 70% now. That is why taxes and expenses do not track each other on the chart.

Another useful measurement is taxes per capita – Ad valorem taxes divided by population and then inflation adjusted. By this measure, in 2005 we paid $1,273 per person to our city and in 2022 it will be $1,200 (2022 dollars) – an actual decline.   Tax per capita was as low as $1148 in 2014 after a millage reduction.  It should be noted that as property owners, we pay taxes to other entities besides the city – county, schools, health care district, etc. In 2021 the Palm Beach Gardens portion of the amount on our TRIM statement is about 27% of the total.

The chart below shows an actual decline in per-capita taxation for two years in a row and then a flattening this year. However, there is reason to believe the BEBR population estimates have missed some of the city’s growth (see below).  If the numbers were to be adjusted to match the growth in voter registrations since 2016 for example, the curve would be flatter since there are more people to pay the taxes.

So if you trust TABOR, or per-capita as measuring sticks, this modest growth in taxation (compared to inflation) for 2022 seems appropriate in our view. You be the judge.

Next Page »