MISSION SUMMARY OF SERVICES/FACILITIES TRENDS AND ISSUES

Transcription

1 DEPARTMENT SUMMARY MISSION To maintain the sound financial condition of the Palm Beach County government by providing management with timely and accurate decision-making information regarding policy and operating issues; advising the Board of County Commissioners and the County Administrator on the availability and allocation of fiscal resources; monitoring and reporting budget and operational performance; conducting independent studies for improvement; establishing financial policies and procedures to govern operating practices; and providing centralized control over County assets, records, and contractual obligations. SUMMARY OF SERVICES/FACILITIES The Office of Financial Management and (OFMB) is responsible for the direction, administration, and evaluation of the County s financial management systems. Primary services involve: preparing and administering the annual budget; providing advice and assistance to County staff; evaluating the fiscal impact of issues to be considered by the Board of County Commissioners; conducting studies of County programs and assisting with the implementation of recommended improvements; planning for future financing needs; developing countywide financial policies; maximizing the collection of monies due to the County; preparing and reviewing formal contracts; administering the impact fee ordinance; conducting periodic inventories and reconciliations of fixed assets; and administering the records management program. OFMB is comprised of three Divisions:, Contract Development and Control (CDC), and Financial Management. Within the Financial Management Division are: the Fixed Assets/Surplus Assets Section; the Impact Fees Program; the Management and Program Analysis Section; and the Revenue Collection Program. TRENDS AND ISSUES Pressure on Ad Valorem Tax Rate: For, the Countywide operating millage rate decreased from 4.28 to and the Main Fire Rescue MSTU millage rate decreased from 2.98 to The Library millage rate also decreased from to in. These rate decreases were mandated by the State legislature through recent caps on Ad Valorem tax revenues. Figure 1 shows the trend of millage rates. Figure 1 C-94

2 DEPARTMENT SUMMARY FINANCIAL SUMMARY FINANCIAL & STAFFING SUMMARY FY 2006 Estimated REVENUES GENERATED User Fees/Charges $493,596 $450,000 $301,795 $350,000 Other 287, , , ,000 TOTAL $781,411 $790,000 $641,814 $718,000 APPROPRIATIONS Personal Services $3,126,183 $3,578,691 $3,530,026 $3,734,074 Operating Expenses 475, , , ,988 Capital Outlay 59,147 67,300 69,080 0 TOTAL $3,660,350 $4,254,093 $4,199,582 $4,153,062 STAFFING Positions Full Time Equivalents (FTEs) PERFORMANCE MEASURES FY Year Trend Benchmark Comparison Target General Obligation Bond ratings (Moody s, Fitch and Standard & Poor s) AAA AAA AA AAA AAA Bond Rating Highest in the State: The General Fund Reserve for Balances Forward decreased by $1.8 million compared to the adopted budget. Adequate reserves and fund balances are necessary to maintain the County s high-quality bond ratings. Moody s, Standard and Poor s, and Fitch rated the County s general obligation bonds AAA, the highest in the State. In addition to these undesignated reserves, the budget also maintains a separate reserve of $16,500,535 toward balancing the FY 2009 budget. Figure 2 provides a comparison of funding levels for selected reserves. Figure 2 Comparison of Funding Levels for General Fund Undesignated Reserves Reserve Title FY 2006 Balances Forward Reserves 93,406, ,857, ,009,189 Contingency Reserves 15,000,000 20,000,000 20,000,000 Significant Changes in Tax Equivalent Funding: Figure 3 shows several significant factors affecting taxes in the budget process. Figure 3 Significant Factors Factor Fiscal Impact (in millions) Increase in budgets of Constitutional Officers (net) 39.7 Increase in Balances Forward (16.8) Increase in Reserves 10.2 Increase in Major Revenues (0.8) Decrease in BCC Dept. s (net) (7.1) Decrease in Capital (63.4) Decrease in Non Dept l s (net) (0.6) Decrease in Non-voted Debt Service (6.4) Decrease in Statutory Reserves (1.3) C-95

3 PROGRAM: BUDGET DEFINITION OF PROGRAMS AND SERVICES To prepare and administer the County s annual budget in accordance with Florida Statutes and policies of the Board of County Commissioners and fulfill an oversight role on behalf of County Administration and the Board of County Commissioners. In addition, this program provides general advice and assistance to County departments, members of the public, media representatives, and other units of government. Primary services include: preparing the County s annual operating and capital budgets; analyzing and processing all changes to the adopted budget; planning for future operating and capital requirements; reporting on financial trends and issues, major project status, and departmental performance measurement data; coordinating the County s reimbursement efforts after a disaster; reviewing and commenting on the fiscal impact of Board agenda items; and providing financial expertise, assistance, and information to the Board, Administration, departments, citizens, and media representatives. PROGRAM OBJECTIVES FOR Review, analyze, and comment on fiscal impact of Board agenda items. Provide timely review and analysis of all budget transfers and amendments. Assist the MPA Unit in evaluating County departmental performance measurement data. Maintain GFOA Distinguished Presentation Award. PERFORMANCE MEASURES FY Year Trend Target Agenda items reviewed 1, % 1,800 1,800 transfers/amendments reviewed 1, % 1,600 1,450 C-96

4 PROGRAM: BUDGET FINANCIAL SUMMARY FINANCIAL & STAFFING SUMMARY FY 2006 Estimated REVENUES GENERATED Other $84 $0 $50 $0 TOTAL $84 $0 $50 $0 APPROPRIATIONS Personal Services $1,018,975 $1,204,961 $1,198,544 $1,300,905 Operating Expenses 90,906 94,835 90,080 72,039 Capital Outlay 28,065 1,500 3,280 0 TOTAL $1,137,946 $1,301,296 $1,291,904 $1,372,944 STAFFING Positions Full Time Equivalents (FTEs) SUMMARY OF KEY FUNDING/SERVICE ISSUES Millage Rate Decrease: At the second budget public hearing the Board of County Commissioners approved a slight decrease in the countywide operating millage rate. The approved rate is mills, down from 4.28 mills in the prior year. This is the fifth rate decrease since FY 2001 when the millage rate was Preparing for Future Tax Changes: The Office is already preparing for the possibility of changes to the State Constitution in regards to Ad Valorem taxing for FY By determining the programs and key functions with each program of every department, the Office is working to ensure that Administration and the Board are aware of each Department s priority and the fiscal impact associated with each function. State Mandated Tax Decrease: In June of 2007, the Florida State Legislature made a change to the State Statutes which limited the amount of revenue the County could collect. All cities and counties were required to cut taxes for to the levels. Additionally, Palm Beach County was required to make another 9% cut. The Office prepared several analyses throughout the budget season to determine the possible outcomes of the various scenarios presented by the State Legislature. C-97

5 PROGRAM: CONTRACT DEVELOPMENT AND CONTROL DEFINITION OF PROGRAMS AND SERVICES To serve as the clearing house for coordinating all formal contracts in compliance with Board policies. Standardized contracts are developed to facilitate the initiation, completion, and approval process. Primary services include: reviewing contracts, agenda items, Requests for Proposals (RFPs), bid documents, and Consultant Services Authorizations (CSAs); participating in contract negotiations by assisting with drafting and developing contracts; making site visits to departments to determine compliance with County policies relating to terms/conditions of contracts; compiling Small Business Enterprise (SBE) and Minority/Women s Business Enterprises (M/WBE) statistical data and Change Orders (CO)/Amendment reports; maintaining a database register for tracking, updating, and monitoring contracts; providing reports to BCC Members and the Clerk s Office in relation to contract change activities and to the Management Team and department heads relating to contract expiration; and to contract monitors; drafting/reviewing countywide policies and procedures pertaining to contracts; and serving as a voting member on numerous countywide committees; providing staff services to the County s investment policy committee; serving as the presiding officer for the County s Contract Review Committee; and providing training to County Staff in relation to Contract Policies and Procedures. PROGRAM OBJECTIVES FOR Assist in the enhancements to the Small Business Enterprise (SBE) Program in gathering and reporting data in relation thereto. Perform reviews of operating departments as needed to evaluate contract procedures, verify compliance, and recommend systemic improvements. Provide Contract workshop training sessions to County employees. Assist in the development and become repository of standard contracts. Work with Risk Management to revise Standard Insurance Requirements, as needed. Provide the data on the Contract Register on the Internet. Work with ISS to create enhancements to our website. Review Bonds/Letter of Credit for various Departments to ensure compliance with Policies and Procedures. C-98

6 PROGRAM: CONTRACT DEVELOPMENT AND CONTROL PERFORMANCE MEASURES FY Year Trend Target Agenda Items reviewed & processed 1, % 1,200 1,300 Agenda Items requiring re-work % New Contracts reviewed & processed % Contracts monitored 1, % 1,800 1,700 CO/CSA/Amend reviewed & processed 1, % 1,600 1,500 Procurement items reviewed & processed % Surety Bonds/Letters of Credit reviewed % FINANCIAL SUMMARY FINANCIAL & STAFFING SUMMARY FY 2006 Estimated APPROPRIATIONS Personal Services $566,674 $567,435 $559,183 $612,584 Operating Expenses 38,359 47,940 41,912 40,231 Capital Outlay TOTAL $605,254 $615,375 $601,095 $652,815 STAFFING Positions Full Time Equivalents (FTEs) C-99

7 PROGRAM: CONTRACT DEVELOPMENT AND CONTROL SUMMARY OF KEY FUNDING/SERVICE ISSUES Revenue Generating Contracts: During, Contract Development and Control (CDC) will continue to work with departments to explore opportunities to enter into and develop revenue producing contracts to increase revenue to the County. Continuation of Contract Site Visits: CDC will continue to make site visits to various County agencies as needed to review contracting procedures. Expertise of CDC, shared through site visits, assists the County in standardizing contracting procedures and documents, as well as enforcing compliance with Board policies. This program has been beneficial to County departments as evidenced by feedback and responses to CDC reports. CDC Expands Review Role: At the direction of the County Administrator, CDC continues a more active role in the front-end development of contracts, Request for Proposal (RFP), Invitations for Bid (IFB), and other specification documents, as well as participation on selection and negotiation committees. In addition, the Division has responsibility for reviewing contracts that are executed at the staff level. In the past, the expanded review role led to a better product being realized by the County. This expanded role will continue in. Countywide PPM (Policies and Procedures Manual) Review: CDC continues to serve on the Countywide Policy and Procedure Manual (PPM) Review Committee, which reviews existing Countywide PPM s and proposed new PPM s. The Committee continues to eliminate and combine older PPM s. Continuation of Expiration Reports: In order to assist County agencies in the renewal of existing contracts in a timely manner, CDC will continue to furnish the Management Team and department heads with reports at three and six month intervals for expiring contracts. Enhancements to SBE Program: CDC will continue to assist in the enhancement and implementation of the SBE Program, including the maintenance of statistics as they relate to contract award participation levels. Review of Surety Bonds/Letters of Credit: There is continuing effort to ensure adherence to contractual and policy requirements that relate to Surety Bonds and Letters of Credit. Departments have been providing such instruments to CDC to review prior to acceptance. C-100

8 PROGRAM: FINANCIAL MANAGEMENT DEFINITION OF PROGRAMS AND SERVICES The Financial Management Division exists to bring cohesive direction to a collection of internal support services. Programs and Sections of the Division include the following: Fixed Assets Management, Impact Fees, Management and Program Analysis, Records Management, and Revenue Collection. PROGRAM OBJECTIVES FOR Review all Policy and Procedure Memoranda and ordinances administered by the division for continued relevance, necessity and construction. Manage the division s Internet website to ensure that it offers useful, reliable and timely content at all times, and that it supports the countywide e-business strategy and the departmental initiative to expand market share of Internet auction sales by public agencies. Evaluate the impacts of the Harnessing Organizational Performance (HOP) initiative on department performance measurement. Continue building the County s surplus assets disposal program, concentrating on the continued implementation of new business opportunities for the Thrift Store. The emphasis is on expanding the Store s market share by encouraging other local governments, particularly in the urban central and south Florida regions, to list surplus vehicle assets on the Store s website for sale by Internet auction. PERFORMANCE MEASURES FY Year Trend Benchmark Comparison Target Average days to process: Independent calculations of fees Impact fee refunds % +100% Percent of impact fee appeals won 100% +0% 100% 100% 100% Impact fee compliance reviews conducted 4 n/a Debt cases referred for outside collection: Liens and judgments Routine debt 170 6,944-81% -92% n/a n/a n/a n/a , ,000 Dollars collected by internal efforts $401, % n/a $400,000 $300,000 Records training seminars conducted 9 n/a 8 8 n/a * The Records Management program was reassigned to the Contract Development & Control Division effective June 4, C-101

9 PROGRAM: FINANCIAL MANAGEMENT FINANCIAL SUMMARY FINANCIAL & STAFFING SUMMARY FY 2006 Estimated REVENUES GENERATED User Fees/Charges $493,512 $450,000 $301,745 $350,000 TOTAL $493,512 $450,000 $301,745 $350,000 APPROPRIATIONS Personal Services $638,582 $751,727 $706,470 $692,670 Operating Expenses 40, , ,832 37,234 Capital Outlay 221 2,200 2,200 0 TOTAL $678,959 $864,921 $813,502 $729,904 STAFFING Positions Full Time Equivalents (FTEs) SUMMARY OF KEY FUNDING/SERVICE ISSUES Review and Establishment of Performance Measures: In FY 2003, at the direction of the County Administrator and OFMB Director, the Financial Management Division, working jointly with the Division, began a multi-year initiative to identify a small number of truly relevant indicators of successful performance among County departments and agencies, such as customer service, financial accountability, internal work efficiencies, and employee learning and growth. With the conversion of Phase 2 of the Harnessing Organizational Performance program to a voluntary program, implementation now resides with each department. For, OFMB will assist departments, whenever requested, in the active use of performance measures to guide continuous improvement. Prepare 5-Year Update of the Thrift Store Business Plan: This comprehensive document was issued in FY 2002 and provides for improved internal controls, a more ambitious marketing plan, better integration with the countywide financial accounting and asset inventory systems, and other operational and technological enhancements to the program. Of particular importance in will be the preparation of the first 5-year update of the Plan. Impact Fee Program: the Impact Fee program staff finalizes the biennial fee methodology study that was started FY2007. Staff will continue municipal compliance reviews in addition to ensuring the overall program is compliant with new impact fee legislation enacted FY The intent is that operational reviews be completed for all municipalities that collect material amounts of County impact fees on a 4-year cycle, averaging at least 4 reviews per year. C-102

10 PROGRAM: FIXED ASSETS DEFINITION OF PROGRAMS AND SERVICES To establish procedures and monitor the record keeping and disposal of personal property owned by the County. In that capacity, the Fixed Assets Management Office annually tracks some 45,100 inventoriable items valued in excess of $431 million and disposes of thousands of pieces of tangible property that are declared surplus each year. The Fixed Assets Management Office (FAMO) operates the County Thrift Store as a direct sales outlet for the disposal of surplus property owned by the County and ten other local government partner agencies Palm Beach County Sheriff s Office, Solid Waste Authority, Healthcare District, and the municipalities of Boca Raton, Boynton Beach, Delray Beach, Palm Beach, Palm Springs, Riviera Beach and West Palm Beach. PROGRAM OBJECTIVES FOR Working cooperatively with the Facilities Development & Operations Department, continue the development of a future building plan for the surplus disposal warehouse and Thrift Store following its planned demolition as part of the airport expansion project. Conduct an active marketing program, particularly targeting local government agencies in urban central and south Florida, to list surplus assets on the new Thrift Store Internet auction service, expected to be available in early Undertake the development and implementation of Phase III enhancements of the FABS software program to complete the migration of that application from the unsupported Powerbuilder format to the new.net format. Coordinate with ISS and Finance Departments the automation of the Construction Work-in-Progress reconciliation reporting. Conduct targeted field reviews with 3 departments to improve internal inventory management and tracking procedures. PERFORMANCE MEASURES FY Year Trend Benchmark Comparison Target Revenue from surplus asset sales $2,167, % $1,600,298 $2,200,000 $2,310,000 Value of redistributed surplus assets $49,940-94% n/a $630,000 $100,000 Return-on-investment from bid items 23.3% +20% 20% 22.5% 23.5% C-103

11 PROGRAM: FIXED ASSETS FINANCIAL SUMMARY FINANCIAL & STAFFING SUMMARY FY 2006 Estimated REVENUES GENERATED Other $287,815 $340,000 $340,019 $368,000 TOTAL $287,815 $340,000 $340,019 $368,000 APPROPRIATIONS Personal Services $618,006 $754,238 $762,809 $810,040 Operating Expenses 296, , , ,845 Capital Outlay 30,530 63,600 63,600 0 TOTAL $944,963 $1,159,295 $1,178,648 $1,068,885 STAFFING Positions Full Time Equivalents (FTEs) SUMMARY OF KEY FUNDING/SERVICE ISSUES Automation and E-business Enhancements: In FY 2006 and 2007, several initiatives were begun which carry over into for completion or full implementation. In each case, these initiatives are designed to expand and improve the use of contemporary automation technologies in areas of inventory management, financial reporting, internal control, and productivity. In some cases, these efforts also target the capabilities for marketing surplus assets to improve the internal rate of return for the Thrift Store. Specifically: Prepare the first 5-year update of the Business Plan adopted in FY 2002 for the County Thrift Store (and surplus assets disposal program, in general); Working cooperatively with the ISS Department, implement Phase III of the migration of FABS to the new.net format; Continue the maintenance and enhancement of the Internet website of the Thrift Store, particularly to capitalize on the web-enabled functionality of online bidding expected to become operational at the end of the first quarter of. C-104

12 PROGRAM: MANAGEMENT AND PROGRAM ANALYSIS DEFINITION OF PROGRAMS AND SERVICES To serve as an internal consultancy and management advisory service that assists County departments in the development of strategic issues and organizational solutions. This Section conducts strategic planning, impact analyses, organization and management reviews, and resource utilization studies. It is also called on by the Board of County Commissioners and Administration to undertake special projects of an operational or management nature. Primary services include: promote organization effectiveness by equipping departments with contemporary management practices and technology solutions; assist in the development of department-wide strategies and plans in support of the County s strategic objectives; assist in establishing and tracking suitable performance standards in the workplace; help determine best practices and benchmarks for service delivery; help develop business cases in support of alternative service delivery options; and assist departments in improving leadership skills, particularly at the middle management level. PROGRAM OBJECTIVES FOR Complete all management studies and major special projects on time to allow client departments to make informed and timely decisions. Review and assess the impact of the Harnessing Organizational Performance initiative to-date to update the county s performance measurement system. Conduct a user satisfaction survey and develop a comprehensive services strategy to maximize the beneficial impact of Section projects on county operations. PERFORMANCE MEASURES FY Year Trend Benchmark Comparison Target Management studies/major project completed 9 +28% User satisfaction rating achieved 1 n/a n/a n/a n/a 90% Departments reviewed for impact of HOP initiative 1 n/a n/a n/a n/a 15 1 This performance measure initiated C-105

13 PROGRAM: MANAGEMENT AND PROGRAM ANALYSIS FINANCIAL SUMMARY FINANCIAL & STAFFING SUMMARY FY 2006 Estimated APPROPRIATIONS Personal Services $282,946 $300,330 $303,021 $317,875 Operating Expenses 10,172 12,876 11,412 10,640 Capital Outlay TOTAL $293,228 $313,206 $314,433 $328,515 STAFFING Positions Full Time Equivalents (FTEs) SUMMARY OF KEY FUNDING/SERVICE ISSUES Review and Establishment of Performance Measures: At the direction of the County Administrator and OFMB Director, the Management and Program Analysis (MPA) Section initiated long-term review of performance measures in use by County departments. Jointly with the Division, MPA sought to equip county departments with the ability to create and actively use a small number of truly relevant indicators of success, from the perspectives of customer service, financial accountability, internal work efficiencies, and employee learning and growth. In FY 2004, the initiative moved into the departments in Phase I, an evaluation of the current performance measures in use throughout the County. Phase I was designed to help eliminate the collection and reporting of measures which have little connection with departments missions or objectives. Starting in FY 2006, Phase II was intended to have county departments voluntarily begin the development of new, more relevant performance indicators, along with benchmarks based upon nationwide best management practices. In, MPA will begin assessing the changes that have taken place in county departments as a result of the HOP program. C-106