Mayor Marciano – Gardens Should Lead by Reducing the Millage

First reading of the annual Budget typically results in discussion by the Council, and this year was no exception. See 8.8% Tax Increase in 2020 Proposed Budget and the Palm Beach Post article for more details about the budget specifics. After the Powerpoint presentation made by Finance Director Allan Owens, Mayor Marciano kicked off his analysis of the proposed budget. Unlike the remainder of the Council, the Mayor was previously on the Budget Review Committee (see report here) for several years prior to being elected to the Council and has an in-depth knowledge of the City’s finances not apparent in the others on the Council. He once again echoed former Mayor Bert Premuroso (also knowledgeable on budget matters).

Marciano proposed that the millage be cut to 5.50 rather than the staff recommended 5.55. The Mayor described the uses of the Budget Stabilization Reserve Fund which have strayed from its original intent when created, for critical items,  to cover useful but not critical budget items as they come up during the year. Staff always projects depletion of the Fund, but somehow it always ends up having many times the original $500K balance intended when formed. Marciano pointed out that while the City may be run efficiently as is a business, it is NOT a business and it’s goal is to provide critical needs for the taxpayer. He also said that the City has lowered millage in the past, and if it can’t do so in good times – when will it? He stated that Palm Beach Gardens should lead by example, as it prides itself on doing in other areas, and lower millage. Lowering the rate from 5.55 to 5.50 is of minimal impact to the City but is giving money back to the taxpayer.

Others on the Council did not discuss the points specifically made by Marciano but echoed fears of potential disasters (which is what the $23 million Reserve Fund is for), and in some cases displayed ignorance of how a taxpayers’ total tax bill is calculated. The vote was 4:1 and the Mayor remained open to further discussion. (PBG Watch is in total support of lowering the millage to 5.50)

In other business:

• State Representative Rick Roth gave a Legislative Update, postponed from an earlier Council meeting..
• All Ordinances and Resolutions, other than the Fiscal Year 2019/2020 Budget, passed 5:0 with minimal discussion by Council.
• Public Comment was made by Tom Cairnes of PGA Corridor about upcoming meetings, and by Steen Ericksson, representing the Fire Chiefs Association of Palm Beach County inviting people to the 9/11 Remembrance Ceremony at Christ Fellowship Church in Boynton Beach at 7pm.
• Additionally – during discussion of the Purchase Award for Gasoline and Diesel Fuel, pulled from Consent by Council Member Lane – it became apparent that the Burns Rd Public Works Property was removed from the market and the pending sale last mentioned in PBGWatch after the May City Council meeting fell through. For more details – see Resolution 55, 2019.

The next City Council Meeting will be held on Thursday September 19, 2019 at 7pm – and includes the Final Hearing and vote on the Fiscal Year 2019/2020 Budget and millage rate.

8.8% Tax Increase in 2020 Proposed Budget

The proposed 2020 PBG Budget raises $5.5M in new taxes, up whopping 8.8% over last year. See the Proposed Budget here.

With the millage flat at 5.55 since reduced to that level in 2016, this is the fifth year that increases in property valuations and new construction have flowed money into the city coffers without having to say they “raised taxes”. In 2015, ad-valorem revenue was $49M. This year’s $67M is a 38% increase in tax haul over 5 years.

If you add in the effect of the 10 year 1% sales tax surcharge which gives the city about another $3M per year, the increase over 2015 is actually 67%.

You may recall that prior to the passage of the sales tax surcharge in 2016, PBG staff had said they didn’t need any additional sources of funds, and if it passed, would return some to the taxpayers in a millage reduction. That too changed of course when the full 10 year revenue stream was captured in a bond and allocated to projects starting immediately, including $11M for a new park.

Assuming the flat millage budget is passed, the 8.8% tax increase compares to an increase in population of about 2.3% and about 2% inflation, so the increase is about twice what economic conditions would expect. A token decrease in millage to 5.50 suggested by Mayor Marciano (representing about $600K), would still produce taxes far above what population and inflation would suggest.

Since 2005, the population of Palm Beach Gardens will have grown by about 34% (BEBR estimate – see below) to its 2020 level of 56K.  Inflation, measured by the consumer price index, will be about 35%. Taken together, TABOR would suggest a growth in city spending and taxation of about 80%. (see graph below).

Over the same period (2005-2020), ad-valorem taxes grew 91% and total expenditures (budget less debt payment, capital and transfers) grew 75%. Spending closely follows the TABOR line, and ad-valorem taxes is not widely divergent (although exceeding TABOR since 2014) 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 73% 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 $1,101 per person to our city and in 2020 it will be $1,122 (2019 dollars).   Although not too far above the 2005 level,  tax per capita was as low as $994 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 2019 the Palm Beach Gardens portion of the amount on our TRIM statement is about 27% of the total.

The chart below shows a steady growth in per-capita taxation, yet there is reason to believe the BEBR population estimates have missed some of the city’s growth (see below).  If the numbers are adjusted to match the growth in voter registrations since 2016 for example, the curve is much flatter since there are more people to pay the taxes.

So if you trust TABOR, or per-capita as measuring sticks, is this growth in taxation appropriate? You be the judge.

Presentations/Public comment and Council Discussion Book-End Mtg

The August PBG City Council was relatively short. All Ordinances and Resolutions passed 5:0.

Presentations included Lauren Berkson on the Gold Star Families Memorial (passed late in the evening at the July mtg – see the Palm Beach Post article here.),  an American Heart Association Gold Plus Award to PBG EMS for the 3rd time – for measures taken to deal with a special type of heart attack known as a ‘stemi’, and an award to PBG EMS as EMS State Provider of the Year for 2019. PBG EMS is the first to receive this award in Palm Beach County.  See Palm Beach Gardens Fire Rescue Earns State EMS Honor, for more details.

Public Comment included Attorney Jim Carroll announcing his candidacy for FL State Representative District 85, Julia Jackson of Lake Catherine expressing concern about the number of buoys now on Lake Catherine attributable to the model sailboat club races, and Barbara Grossman expressing concern about plans for Virgin Trains and requesting that the opposition group(s) be allowed to make a presentation to the Council at a future date.

During the presentation for Resolution 53, 2019 – Fire/Rescue Training Tower – it was mentioned that while such towers are typically made of concrete (as is the County’s tower off Southern Boulevard), the City’s training site uses movable and temporary structures, and thus a modular structure was necessary. See the Palm Beach Post article “Palm Beach Gardens is going to Build a 4 Story Fire Rescue Training Tower“.

Towards the end of the Council meeting – during Items for Council Action/Discussion, the first item for discussion was SPONSORSHIP OF THE 8TH ANNUAL SENATOR PHILIP D. LEWIS CENTER LUNCHEON, HOMELESS COALITION OF PALM BEACH COUNTY, proposed by Vice Mayor Litt. Sponsorship costs $1800 and includes 2 tickets to the luncheon. Council Member Marino asked how is the Council going to determine which non-profits are worthy or not? She pointed out that it is tax-payer money being used. Council Member Woods was leaning to approve, saying “we’re a large city and we have the money.” Mayor Marciano said that sometimes we have to spend outside the city to help people who can’t help themselves. Both Woods and Marciano discussed budgeting in the future for such expenditures for charities/non-profits using the City’s tax-payer moneys. The discussion continued during the next item CO-SPONSORSHIP OF THE PALM BEACH NORTH CHAMBER OF COMMERCE BUSINESS BEFORE HOURS MAYOR’S BREAKFAST, where a $500 sponsorship was approved.

The discussion then segued to traffic on Northlake Boulevard – a topic of much complaint by residents. Council Member Woods said that actions were in early stages and to let staff processes continue and decide alternative solutions after working with the county.

Mayor Marciano raised the topic of Brightline/All Aboard. He said that the City has had three resolutions in the past expressing concern about the crossings and the trains impacts to the City. He is continuing to try and reach Congressman Mast to see what can be done on a federal level. If the train is going to come then the City, then the City has to be prepared with safe crossings and quiet zones, and even a train stop if that would benefit the city.  The Council will support the citizens in any way they can. But it didn’t seem likely that the Council will allow a presentation by opposition groups. (Note that while it’s interesting that the Council may have seen such a presentation by opposition groups elsewhere – it doesn’t make it public record for the citizens of the City.)

Virgin Trains impacts, Mobility Plan, 2019/2020 budget max millage and more

The agenda for the July 11th City Council took the max allotted time of 4.5 hours. Council Member Marino was not in attendance and all Ordinances and Resolutions passed 4:0. Since most attendees probably did not last until the end of the meeting here are a few highlights.

• City Manager Ferris was offered a new contract (as discussed at the June 2019 City Council Mtg); Council Member Woods proposed that on top of the 3% cost of living increases that the City Manager (and staff and thus the Council) have been getting over the last several years, that Mr. Ferris be given a one-time 6% increase.
  July 11th

  Mr. Ferris’ current salary at $239K is only less than the City Administrator of Palm Beach County at $270K, Boca Raton’s city manager of $240K and West Palm Beach at $240K. The Council’s rationale was that the top city in Florida to live in should have a city manager earning a top salary. There was no analysis of number of employees, city population or anything else.

• The maximum millage for the 2019/2020 Fiscal Year Budget was set at 5.55 – it can be lowered but not raised. The operational budget has been at 5.55 for several years as well – and given continued rising valuations, this will most likely be a tax increase for most property owners. The proposed budget can be found here. The first public hearing on the Fiscal Year 2019/2020 Budget will be held on September 5, 2019, at 7:00 pm in the City of Palm Beach Gardens Council Chambers.
• Representatives of Virgin Trains gave an update on service to Orlando, expected by mid-2022. Their plans are still to have 16 round-trips per day to Orlando. See  the Palm Beach Post article here for a summary of the update. Of note and not in the article – each crossing in the City will have to be closed for up to 10 days each, with the Kyoto Gardens intersection having to be closed twice for up to 10 days each. Plans are to not have adjacent crossings closed at the same time and to have well marked detours.

• The Palm Beach Gardens Mobility plan and updated fees had considerable discussion. There is only so much that city roads can be widened, so alternative modes of transportation will need to be considered. Most of the discussion however was due to a letter sent from Palm Beach County Administrator Verdenia Baker opposing modifications to the current transportation concurrency/road impact fees with a transition to Gardens’ mobility fees. Natalie Crowley, Director of Planning and Zoning outlined what PBG considered as wrong assumptions in the County’s letter. Patrick Rutter, Assistant County Administrator outlined the County’s issues; Nick Uhren, Director of Palm Beach County Transportation Planning Agency and Dr. Kim Delaney, Director of Strategic Development and Policy for the Treasure Coast Regional Planning Council, both spoke in full support of the City’s plan and fee approach.
• FPL sought approval for changes to its plans for the office building on Kyoto Gardens Drive. See the article for more details. Several members of the business community spoke in support and a resident inquired about the heliport stop.

New Development at City Centre and Downtown at the Gardens

Vice-Mayor Litt was unable to attend as she was attending the graduation ceremony for completing Leadership Palm Beach.  Council Member Marino is also a graduate of the program.  Congratulations to Mrs. Litt.

During Announcements and Presentations Officer Francine O’Brien was chosen as PBC Chiefs’ Association 2018 Officer of the year. Also the PBA voted on and the Council approved a collective bargaining agreement for the next 3 years. Key elements included a 6%/year annual increase for each of the 3 years and change of the retirement age from 55 to 52.

All Ordinances and Resolutions on this very busy agenda passed 4:0 with the exception of the following:

• 2nd Reading and Adoption of Ordinance 6, 2016 and companion resolution 20, 2019 – which entailed the changes to the Costco site plan, and approval for a retail expansion and 24 position fueling center (limited to members) received much discussion by the Council, and public comment against and for. Council Member Lane was opposed to the number of fueling stations and traffic impact and the final vote was 3:1.
• Ordinance 8, 2019 – 1st reading – Ballenisles East Outparcel rezoning for the development of a medical and professional office building to be located on the SE corner of PGA Blvd and Ballenisles Drive. Staff had recommended AGAINST approval. The applicant requested postponement of the vote until July; staff recommended an indefinite postponement until issues were resolved. After discussion, the council voted 4:0 for an indefinite postponement.

New development includes plans for Solera at City Centre, located on US1 and PGA Blvd – a 136-unit multi-family apartment building, including some workforce housing (see  the Palm Beach Post article,  and a Life Time Health Club and parking garage to be built at Downtown at the Gardens – see a description the Post’s coverage here.

Also approved was the hiring of a consultant to develop a workforce housing program for the City. And the Council, while having met individually with City Manager Ferris to give private feedback, publicly gave him a stellar annual evaluation and suggested that the City Attorney bring forward a new contract to for Mr. Ferris.

New Tax Collector Office Building for PGA Blvd

The May 2nd City Council meeting included first reading on changes to two sites on PGA Boulevard and Northlake Boulevard respectively.

The current DMV site on PGA across from the Gardens Mall will be replaced by a beautiful new building housing both the Palm Beach County Tax Collector’s functions currently housed in the North County Courthouse, as well as the drivers’ license functions previously conducted on the site’s locations.  All on the Council were impressed by the new building, along with the included traffic improvements allowing access from the North County Courthouse and PBC Library parking lot areas.  Residents will be able to access all three locations without having to enter via PGA Blvd.

Costco, located on Northlake Boulevard across from MacArthur Boulevard, will be adding a members’ only fueling center at the site of the old Sports Authority and Rooms to Go Outlet, as well as revamping the access roadway for better traffic management on Northlake, enhancing the appearance of the store itself, and modifying the parking area and landscaping.  The Council did spend some time exploring the last minute complaint by the owner of an adjoining property.

Also of note – the Council approved the sale of the Burns Road Public Works property to Johnstone Capital Partners for $2.8 million.  A previous sale fell through, and while there was another higher offer, that offer presented legal issues as well as tying up the property for many months with no penalty should that offer fall through.  After deliberations, the Council agreed that the Johnstone offer, with only 10 days of deliberation and a closing date of June 12  for the property appraised at $2.2 million, was the way to go.

All ordinances and resolutions passed 5:0.

 

Congratulations to Mayor Mark Marciano and Vice Mayor Rachelle Litt

After the meeting was called to order and the results of the election were approved, Vice Mayor Woods asserted himself to talk first and nominated Mark Marciano for Mayor and Rachelle Litt for Vice Mayor, and both were unanimously selected.  Congratulations to them both!

Comments from the Public included a speech by Weiss School student and former Mayor for the Day (in March) James Delano summarizing the highlights of his experience. He was followed by former Mayor Joe Russo thanked the Council and staff for their outstanding work over the last three years and both outgoing and congratulating the in-coming Mayor and Vice Mayor.

City Manager Ferris had David Reyes, in his capacity as Director of Emergency Management decribe the actions taken the previous Tuesday immediately after the 4pm ‘weather event’ which severely impacted PGA National, the PGA/Military Trail intersection, and areas in Burns Road and Siena Oaks. By 4:30 all public services staff was onboard, and all issues were addressed, including checking areas not directly impacted by 7pm.

The Consent Agenda passed 5:0. Two items were pulled for further explanation. Vice Mayor Litt requested that a description be given of the grant application for construction/enhancement of twelve pedestrian crossings – several in the area of Hood Rd.  Council Member Lane requested a detailed presentation on the Fuel Card Purchase Award. Both also passed 5:0.

Ordinance 2,3 2019 and related Resolution 12, 2019 concerning small scale comprehensive plan amendment and rezoning for 2 parcels located on Alt A1A .5 mi south of Hood Rd for Convenience store and gas station, and car-wash/detailing facility passed 5:0 on Second Reading.

New business included first reading of Ordinance 4, 2019 which rezoned the Seacoast Utility Property. Plans were described for an entire redo of the municipal offices on the property. Meg Shannon of The Isles subdivision praised the collaborative working relationship of Seacoast with The Isles community. Also on the agenda was the Collective Bargaining Agreement with the Professional Firefightters and Paramedics of PBC, ratified by Local 2928 IAFF, Inc for fiscal years through 2020-2021. Both items also passed unanimously.

All appointments to External Boards and Committees remained the same except for the few that required participation by the City’s Mayor.

2019 Municipal Election Results

The March 12 municipal election in Palm Beach Gardens was a clear win for incumbent Vice Mayor Carl Woods over challenger Howard Rosenkranz. Woods won every precinct except 1246 (Shady Lakes, Bent Tree, Garden Lakes and the Gardens of Woodbury), and 1296 which includes Marina Gardens and Brookdale around the intersection of PGA and Prosperity Farms Road.

Ballenisles (1252) and Frenchmans (1194) should be congratulated for over 20% turnout, but turnout overall was a very light 9.5%, with the winner getting votes from only 6% of the eligible voters. It was not the lowest on record though – that honor goes to the Jablin/Easton race in March 2011 where only 7.6% (2775) turned out, but it was the second lowest since 2002 on a percentage basis. (See: PBG Elections for a summary of the elections from 2002-2019). Interest was low – neither candidate campaigned much past a few mailers, and there were no forums.

At least this race was a contest – in the Group 2 race, Mayor Marino had no challenger and won re-election by default.

Group 4

---

Group 4
Strong Woods	Weak Woods	Very Close	Weak Rosenkrantz	Strong Rosenkrantz
Click the precinct on the map for vote totals.

Precinct	Registered	Votes Cast	Turnout %	Woods	Rosenkrantz	Woods Margin
1186	1509	103	6.8	60	43	58.3
1188	932	54	5.8	38	16	70.4
1189	100	11	11.0	7	4	63.6
1190	4036	265	6.6	186	79	70.2
1192	1498	108	7.2	89	19	82.4
1194	2137	479	22.4	349	130	72.9
1228	460	46	10.0	37	9	80.4
1238	1772	173	9.8	106	67	61.3
1240	2561	229	8.9	174	55	76.0
1242	2616	322	12.3	246	76	76.4
1244	1611	139	8.6	106	33	76.3
1246	2472	242	9.8	99	143	40.9
1247	241	32	13.3	27	5	84.4
1248	1564	173	11.1	112	61	64.7
1250	66	8	12.1	6	2	75.0
1252	2351	475	20.2	248	227	52.2
1254	470	31	6.6	20	11	64.5
1260	1302	135	10.4	92	43	68.1
1266	486	3	0.6	3	0	100.0
1268	319	9	2.8	6	3	66.7
1272	1975	156	7.9	112	44	71.8
1274	1631	128	7.8	89	39	69.5
1280	400	36	9.0	24	12	66.7
1284	2383	143	6.0	96	47	67.1
1288	35	2	5.7	0	2	0.0
1290	2188	181	8.3	140	41	77.3
1292	79	7	8.9	7	0	100.0
1296	774	27	3.5	11	16	40.7
1324	1318	63	4.8	52	11	82.5
1326	558	59	10.6	43	16	72.9
1340	15	3	20.0	3	0	100.0
1352	2262	154	6.8	111	43	72.1
1360	900	92	10.2	59	33	64.1
1372	178	5	2.8	3	2	60.0
6062	844	114	13.5	82	32	71.9
6064	123	5	4.1	3	2	60.0
Total	44190	4212	9.5	2846	1366	67.6

Elections, NCNC Annual Meeting and March City Council Mtg

Elections:

Vice Mayor Carl Woods was re-elected to the Council Group 4 in a relatively low turnout election. Congratulations to Mr. Woods, and thanks to his opponent, Howard Rosencranz for running. We of PBG Watch believe that every incumbent should have an opponent, and understand how much effort it takes to campaign – not just for the candidates but for their families. We will have a details precinct analysis when the Supervisor of Elections publishes the precinct results. See the Palm Beach Post coverage here.

NCNC Annual Meeting:

We attended the annual meeting of the North County Neighborhood Coalition. The event was attended by about 200 people including members, elected and newly elected officials, sponsors and other invited guests. NCNC President Sal Faso kicked off the meeting with some key facts about the NCNC and its impact. Member communities have a significantly higher rate of voter participation than is found generally in Palm Beach County, which is a testament to the information that is provided to the voters via their monthly meetings and outreach. The keynote speaker was Teresa Urquhart, CEO of Palm Beach Gardens Medical Center, who gave an overview of hospital. Following was a panel on the Opioid Crisis consisting of County Commissioner Melissa McKinlay, State Attorney David Aronberg and Dr. Kenneth Scheppke, who serves as State EMS Medical Director for the FL Department of Health. All three on the panel have had an intense involvement in finding solutions to the opioid crisis.

Check out the NCNC website and goals.

March City Council Meeting:

The Council had a very light agenda. The Consent Agenda and all Ordinances and Resolutions passed 5:0.  Sixth-grader James Delano, of the Weiss School was Mayor for the Day and he opened and closed the meeting.

Of note:

• Council Member Lane pulled the purchase award for Paving of Public Service Operations Center and Adjoining Areas so that the Council and the public could be informed about the large expenditure of over $800K and why it was done as a piggyback/access contract
• Resolution 6, 2019 – was for the development of a 10,000 sq foot state of the art indoor training facility at Gardens Park. This will be a public private partnership with Cressey Sports Properties, LLC, it will have no financial impact to the city, it will house an office for PBGYAA, and the City will own the facility after 31 years.
• City Attorney Max Lohman gave an update on the three most prominent cases:
  • Dinerstein #1 – challenge to the March question on 3 year sit-out – he stated that the City prevailed in the 4th DCA, a motion for rehearing and a motion for rehearing en banc was filed and summarily denied.  He’s waiting for the mandate to  issue on the case after which he will file a motion for costs, to try and recover some of the costs entailed.
  • Dinerstein #2 – challenge to question 2 from the August Election (charter replacement) – Judge Keyser ruled in City’s favor on motion for summary judgement.  Lohman is waiting to see if they appeal.
  • Summary judgement on Sears case on August 28th – judge granted alternative relief which was to find the Sears motion for attorneys fees to be legally insufficient, and directed Sears to refile a motion by April 1.

 

Both City Hall and Tennis Center 1-Cent Sales Tax Projects Revised

Construction bids for the City Hall Renovations (Resolution 7, 2019) and Tennis Center Renovations (Resolution 8, 2019), both funded by the 1% sales tax, exceeded the budget for the projects. So the City downsized the ambitious plans somewhat to fit both projects within their original budgets and worked with the lowest bidders to adjust plans and materials. These resolutions provided for the City Manager to negotiate and execute with the selected bidders for both projects. The City Hall Renovations will impact both traffic patterns and entry/exit points to the Municipal Complex.

Ordinance 1, 2019 – 2nd Reading and Adoption Budget Amendment – Finance Administrator Allen Owens informed the council that the sale of the Public Works Property did not go through, so the amendment was changed to delete $1.38 million from the budget stabilization reserve fund accordingly, now at $2.4 million.

Both Council Members Lane and Litt each pulled two items from the from the Consent Agenda for further discussion and presentations, but those items and Consent were all passed 5:0. One of Mrs. Litt’s items was a Proclamation by the Mayor on behalf of 211 Awareness Week, which was read aloud. More information on the 211 Helpline can be found on their website.

All Ordinances and Resolutions passed 5:0.

During Items for Council Action/Discussion, Council Member Marciano brought up the topic of Workforce/Essential Services Housing and how more work is needed on the subject. (In January’s meeting, Council Member Lane had said that a workshop will be held on the subject some time in the near future. ) Mayor Marino raised the subject of speed of the traffic on the western portions of Northlake Boulevard.

City Attorney Max Lohman gave a brief status on both lawsuits by resident Sid Dinerstein. When asked how much the two cases have cost the City so far, his response was in excess of $70K.

• 4th District Court of Appeals ruled on behalf of the City on Question 3 (3-yr sit out before running again) from the March, 2018 election – but is being asked for reconsideration
• 2/11 – Hearing for Summary Judgement on Question 2 (the Charter repeal/replace) from August, 2018 election, with the City taking the position that the case is without merit; at the hearing both sides were given additional time to provide the judge with additional information.

Other Upcoming Events:

• February 24 – March 3 – The Honda Classic
• February 28 – Beeline Highway FDOT Public Hearing at Burns Road Community Center (see http://www2.dot.state.fl.us/publicsyndication/PublicMeetings.aspx/publicmeetings)
• March 12 – City Elections – Group 4 (Candidates:  Carl Woods and Howard Rosenkranz).  See the City Elections site for more details.

 

 

 

« Previous Page — Next Page »