The premise of this memorandum is to seek approval from the City Council to adopt the three budget related ordinances presented on the September 8, 2021 agenda.  The projected general fund revenues for FY 2022 amounts to $85,166,896 of which $51,472,957 or 60%, is anticipated to be derived from ad valorem taxes, contingent on the millage rate remaining at 8.4520 mills.    The City collects approximately 38% of the entire tax bill levied on real and tangible property located within the City’s municipal boundaries.  The balance of the tax levy is distributed to other government entities such as, Palm Beach County and the Palm Beach County School District.

The FY 2022 tentative general fund budget of expenditures is $85,166,896 which is 3.98% higher than the FY 2021 adopted budget.  The millage rate of 8.4520 mills remains the same as adopted in the previous year’s budget, however, a tax revenue increase is presented as taxable value within the City’s municipal boundaries has increased by approximately 6.15% resulting in additional ad valorem taxes of $2.985 million.

The proposed FY 2022 budget for the General Fund proposes an increase of 3.98% due to increases in wages as stipulated in the collective bargaining agreements and increases for goods, services and commodities.  Personnel costs which include salaries and benefits total approximately $49.862 million or 58.55% of the total general fund budget for FY 2022. For FY 2022, the Police Department is the City’s largest department with budgeted expenditures of $23.509 million and a budgeted staff complement of 179 full-time equivalent (FTE) employees.  The Procurement Department is the smallest department with budgeted expenditures of $0.749 million and a budgeted complement of 6 FTEs.   Public Safety (fire and police) accounts for $39.950 million or 46.9% of the total FY 2022 general fund budget. The FY 2022 budget includes the full funding of wages and salaries commitments as per the union contracts, full funding of heatlh insurance benefits, and full funding to meet the required pension obligations.

The City-wide FY 2022 proposed annual operating budget proposed is approximately $145.400 million which includes the following funds: