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2023.07.27_FAB_Agenda_RegularAGENDA FINANCIAL ADVISORY BOARD REGULAR MEETING Thursday, July 27, 2023 AT 11:30 AM TOWN OF HIGHLAND BEACH, FLORIDA 3618 S. OCEAN BOULEVARD HIGHLAND BEACH, FL 33487 Telephone: (561) 278-4548 Website: www.highlandbeach.us LIBRARY COMMUNITY ROOM 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF THE AGENDA 5. PUBLIC COMMENT (limited to three (3) minutes per speaker) 6. APPROVAL OF MINUTES A. October 27, 2022 January 26, 2023 7. UNFINISHED BUSINESS A. None. 8. NEW BUSINESS A. Welcome to New Board Members Mark Zarrilli John Verdile B. Nomination Chairperson and Vice Chairperson, term ending April 26, 2024. Page 1 Agenda – Financial Advisory Board Regular Meeting Thursday, July 27, 2023, 11:30 AM Page 2 of 2 C. Consider recommendation to approve the New Purchase Policy and Proposed Ordinance. D. Proposed Operating Budget Presentation for Fiscal Year 2024 - Finance Director DiLena E. Presentation of Comprehensive Annual Financial Report for Fiscal Year Ending September 30, 2022 F. Year-to-date Financial Report 9. BOARD MEMBERS REPORT 10. ANNOUNCEMENTS August 01, 2023 1:30 P.M. Town Commission Meeting 11. ADJOURNMENT Any person that decides to appeal any decision made by the Board of Adjustment & Appeals with respect to any matter considered at this meeting, such person will need to ensure that a verbatim record including testimony and evidence upon which the appeal is based. (State Law requires the above Notice. Any person desiring a verbatim transcript shall have the responsibility, at his/her own cost, to arrange for the transcript.) The Town neither provides nor prepares such record. There may be one or more Town Commissioners attending the meeting. In accordance with the Americans with Disabilities Act (ADA), persons who need accommodation in order to attend or participate in this meeting should contact Town Hall at (561) 278-4548 within a reasonable time prior to this meeting in order to request such assistance. Page 2 File Attachments for Item: A. October 27, 2022 January 26, 2023 Page 3 TOWN OF HIGHLAND BEACH FINANCIAL ADVISORY BOARD REGULAR MEETING MINUTES Town Hall / Commission Chambers Date: October 27, 2022 3614 South Ocean Boulevard Highland Beach, Florida 33487 Time: 11:30 AM 1. CALL TO ORDER Chairperson Stern called the meeting to order at 11:30 A.M. 2. ROLL CALL PRESENT Board Member Edward Kornfeld Board Member David Goldberg Board Member Mitchell Pakler (virtually) Board Member Peter Weiner (virtually) Board Member Richard Greenwald Vice Chairperson Ronald Reame (virtually) Chairperson David Stern Administrative Support Specialist Jaclyn DeHart Additional Staff Present Finance Director David DiLena 3. PLEDGE OF ALLEGIANCE The Board Members led the Pledge of Allegiance to the United States of America. 4. APPROVAL OF THE AGENDA Motion: Greenwald/ Reame - Moved to approve the agenda as presented, which passed unanimously 7 to 0. 5. PUBLIC COMMENT There were no public comments. 6. APPROVAL OF MINUTES A. July 07, 2022 Page 4 Financial Advisory Board Regular Meeting Minutes Date: October 27, 2022 Page 2 of 4 August 23, 2022 Motion: Greenwald/ Kornfeld - Moved to approve the minutes of July 07, 2022, and August 23, 2022, which passed unanimously 7 to 0. 7. UNFINISHED BUSINESS A. None 8. NEW BUSINESS A. Third Quarter Financial Report - David DiLena, Finance Director Finance Director DiLena presented the third quarter financial report. The Board Members discussed the changing costs of the budget for building the new Fire Station, contingency plans for gaining more funding, and inflation costs. Member Goldberg called for a motion to have an updated fire rescue budget for the next meeting. Motion: Goldberg/Greenwald - Moved to have an updated fire rescue budget for the next meeting, which passed unanimously on a 7 to 0 vote. Member Goldberg spoke about the water award won by The Town of Highland Beach, and he encouraged the other board members to take a tour of the water treatment plant. Chairperson Stern asked about the rising interest rates and how that relates to the Town’s investment funds. Finance Director DiLena said it could be looked at during the next meeting to give more insight. B. Consideration and approval of the 2023 proposed Financial Advisory Board Meeting Schedule. Motion: Greenwald/Goldberg - Moved to accept the meeting dates which passed unanimously 7 to 0. 9. BOARD MEMBERS REPORT Member Goldberg announced that he has resigned from the Board and would be leaving in the new year. Chairperson Stern announced that his term as member of the Financial Advisory Board would expire as of April 2023. Page 5 Financial Advisory Board Regular Meeting Minutes Date: October 27, 2022 Page 3 of 4 10. ANNOUNCEMENTS Commissioner Stern read the announcements as follows. October 27, 2022 5:00 - 7:00 P.M. Food Truck Event November 01, 2022 1:30 P.M. Town Commission Meeting November 02, 2022 9:30 A.M. Natural Resources Preservation Advisory Board Regular Meeting November 09, 2022 1:00 P.M. Code Enforcement Board Regular Meeting November 09, 2022 6:00 P.M. Public Meeting Accessory Marine Facility Regulations November 10, 2022 9:30 A.M. Planning Board Regular Meeting November 10, 2022 6:00 P.M. Public Meeting Accessory Marine Facility Regulations December 07, 2022 6:00 P.M. Public Meeting Accessory Marine Facility Regulations 11. ADJOURNMENT The meeting adjourned at 12:23 P.M. Page 6 Financial Advisory Board Regular Meeting Minutes Date: October 27, 2022 Page 4 of 4 APPROVED at the July 27, 2023, Financial Advisory Board Regular Meeting _________________________________ Ronald Reame, Vice-Chairperson ATTEST: Transcribed by: Jaclyn DeHart ____________________________________ _____________________________ Jaclyn DeHart, Date Deputy Town Clerk Disclaimer: Effective May 19, 2020, per Resolution No. 20-008, all meeting minutes are transcribed as a brief summary reflecting the event of the meeting. Verbatim audio/video of this meeting can be found on the town’s Media Archives & Minutes webpage: https://highlandbeach-fl.municodemeetings.com/. Page 7 TOWN OF HIGHLAND BEACH TOWN FINANCIAL ADVISORY BOARD REGULAR MEETING MINUTES Town Hall / Commission Chambers Date: January 26, 2023 3614 South Ocean Boulevard Highland Beach, Florida 33487 Time: 11:30 AM 1. CALL TO ORDER Vice-Chairperson Reame called the meeting to order at 11:30 A.M. He explained that due to the lack of the physical quorum the board will not make any recommendations or motions, the meeting will consist of discussion only. 2. ROLL CALL PRESENT Board Member David Goldberg Board Member Richard Greenwald Board Member Edward Kornfeld (virtually) Vice-Chairperson Ronald Reame Administrative Support Specialist Jaclyn DeHart ABSENT Board Member Mitchell Pakler Board Member Peter Weiner Addition Staff Present Finance Director David DiLena 3. PLEDGE OF ALLEGIANCE The Board Members led the Pledge of Allegiance to the United States of America. 4. APPROVAL OF THE AGENDA No motions were made to approve the agenda. 5. PUBLIC COMMENT There were no public comments. 6. APPROVAL OF MINUTES Page 8 Financial Advisory Board Regular Meeting Minutes Date: January 26, 2023 Page 2 of 3 A. October 27, 2022 The October 27,2022 minutes have been tabled and will be added to the next meeting agenda. 7. UNFINISHED BUSINESS None. 8. NEW BUSINESS A. Nomination of Chairperson and Vice Chairperson, term ending in May 2024 Due to the lack of a physical quorum, this item was tabled and will be added to the next meeting agenda. B. First Quarter Financial Report - David DiLena, Finance Director Vice-Chairperson Reame read the title into record. David DiLena introduced this item. He reviewed FY2022 financial report. He reviewed the first quarter financial report for FY2023. C. Water and Sewer 10/1/2023 Billing Rate Review - Vice Mayor Natasha Moore Vice-Chairperson Reame read the title into record. Vice Mayor Moore introduced the item and showed a PowerPoint presentation. During the presentation there was discussion about the rate changes for water and sewer. D. Update on Fire Rescue Budget- David DiLena, Finance Director Finance Director David DiLena gave an update on the status of the Fire Rescue Budget. 9. BOARD MEMBERS REPORT There were no Board Member reports. 10. ANNOUNCEMENTS Vice-Chairperson Reame read the announcements as follows: January 31, 2023 1:30 P.M. Town Commission Special Meeting Page 9 Financial Advisory Board Regular Meeting Minutes Date: January 26, 2023 Page 3 of 3 February 01, 2023 10:00 A.M. Natural Resources Preservation Advisory Board Regular Meeting February 07, 2023 1:30 P.M. Town Commission Meeting February 09, 2023 9:30 A.M. Planning Board Regular Meeting February 14, 2023 1:00 P.M. Code Enforcement Board Regular Meeting February 20, 2023 Town Hall closed in observance of Presidents Day February 21, 2023 1:30 P.M. Town Commission Meeting 11. ADJOURNMENT The meeting adjourned at 12:48 P.M. APPROVED at the July 27, 2023, Financial Advisory Board Regular Meeting _________________________________ Ronald Reame, Vice-Chairperson ATTEST: Transcribed by: Jaclyn DeHart ____________________________________ _____________________________ Jaclyn DeHart, Date Deputy Town Clerk Disclaimer: Effective May 19, 2020, per Resolution No. 20-008, all meeting minutes are transcribed as a brief summary reflecting the event of the meeting. Verbatim audio/video of this meeting can be found on the town’s Media Archives & Minutes webpage: https://highlandbeach-fl.municodemeetings.com/. Page 10 File Attachments for Item: B. Nomination Chairperson and Vice Chairperson, term ending April 26, 2024. Page 11 TOWN OF HIGHLAND BEACH AGENDA MEMORANDUM MEETING TYPE: Financial Advisory Board Regular Meeting MEETING DATE 07/27/2023 SUBMITTED BY: Jaclyn DeHart, Deputy Town Clerk SUBJECT: Nomination Chairperson and Vice Chairperson, term ending April 26, 2024. SUMMARY: As of November 22, 2022, Mr. David Stern resigned from his role as member and Chairperson of the Financial Advisory Board. Therefore, this matter is being brought before the Board for discussion and nomination to fill the vacant position, with the term ending in April 26, 2024. According to Resolution No. 19-029 R, - Advisory Board and Committees Appointment Process Policy, Section 9, it should be common practice that no member shall serve as chair until he or she have served for one full year on the advisory board unless no existing member is willing to serve as chairperson or vice chairperson. FISCAL IMPACT: None. ATTACHMENTS: Board Members List RECOMMENDATION: Staff recommend nominations for a Chairperson and Vice Chairperson to serve, ending on April 26, 2024. Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 TOWN OF HIGHLAND BEACH Town Commissioners Advisory Board Members Contact Information Names Addresses Home Numbers Cellular Numbers Email Addresses Date of Appointment Richard Greenwald 4308 Tranquility Drive Sub Div: Bel Lido 561-276-4666 561-271-4965 ragreenwald@bellsouth.net 6/15/2021 Reappointed Ronald Reame Vice Chairperson 4748 S. Ocean Blvd. Apt. #9B Sub Div: Boca Highlands None 248-705-6970 rreame@outlook.com 04/18/2023 Reappointed Peter Weiner 4740 S Ocean Blvd, #101 Sub Div: Boca Highlands None 781-400-4413 Peterweiner912@gmail.com 6/15/2021 Mitchell Pakler 4748 S Ocean Blvd, #6B Sub Div: Dalton Place at Boca Highland Beach None 412-848-4841 Mpakler@aol.com 6/15/2021 Edward Kornfeld 3912 S. Ocean Blvd. Apt. #809 Sub Div: Regency Highland None 561-894-8551 Edkorn44@gmail.com 1/18/2022 Mark Zarrilli 3912 S. Ocean Blvd. Apt. #901 Sub Div: Regency Highland None 732-266-0637 MarkZ2128@gmail.com 2/21/2023 John Verdile 3224 S. Ocean Blvd. Apt 612B Subdivision: Highland Condos None 216-570-5042 John@XpenseSolutions.com 3/8/2023 unexpired 4/30/2025 4/30/2024 4/30/2026 4/30/2024 Date Term End 4/30/2024 4/30/2024 4/30/2026 FINANCIAL ADVISORY BOARD Regular Meetings held Quarterly - January, April, July & October (as needed) 4th Thursday at 11:30 AM Page 4 of 6 Updated 4/18/2023 Page 19 File Attachments for Item: C. Consider recommendation to approve the New Purchase Policy and Proposed Ordinance. Page 20 TOWN OF HIGHLAND BEACH AGENDA MEMORANDUM MEETING TYPE: Financial Advisory Board Meeting MEETING DATE 7/27/2023 SUBMITTED BY: Eric Marmer, HR and Risk Management Director SUBJECT: Consider Recommendation of New Purchase Policy and Ordinance SUMMARY: Based on a thorough assessment of the current purchasing procedures and in consideration of best practices in procurement, the proposed changes will help enhance efficiency and accountability in the purchasing process. Additionally, it will promote fair competition among suppliers. Under the new policy, the purchasing limits will be revised as follows: Purchases under $10,000: Require one written quote. Purchases from $10,001 to $50,000: Require three written quotes. Purchases $50,001 and over: Require sealed competitive bids that require commission approval. By implementing these changes, the Town will be able to obtain competitive pricing, ensure proper vendor selection, and protect public funds. The policy will provide clear guidelines for staff and vendors, facilitating smoother procurement transactions while adhering to legal and ethical standards. The proposed policy has been carefully reviewed and is consistent with other municipalities' procurement practices. It has also been developed in consultation with relevant stakeholders, including the finance department, legal counsel, and purchasing professionals. FISCAL IMPACT: N/A ATTACHMENTS: Local Procurement Threshold Chart 2023 Page 21 New Purchasing Policy New Ordinance RECOMMENDATION: Consider Recommendation of New Purchase Policy and Ordinance Page 22 Procurement Thresholds by Municipality One Quote Three Quotes Formal Solicitation Boca Raton < $7,500 < $50,000 > $50,000 Boynton Beach < $5,000 < $50,000 > $50,000 Deerfield Beach < $5,000 < $30,000 > $30,000 Delray Beach < $5,000 < $65,000 > $65,000 Ocean Ridge < $5,000 < $25,000 > $25,000 Palm Beach < $3,500 < $35,000 > $35,000 Palm Beach Gardens < $5,000 < $65,000 > $65,000 Wellington < $5,000 < $65,000 > $65,000 Average < $4,833 < $45,555 > $45,555 Highland Beach - Current < $2,500 < $25,000 > $25,000 Highland Beach - Proposed < $10,000 < $50,000 > $50,000 Sorted by One Quote Threshold Procurement Thresholds by Municipality One Quote Three Quotes Formal Solicitation Highland Beach - Proposed < $10,000 < $50,000 > $50,000 Boca Raton < $7,500 < $50,000 > $50,000 Delray Beach < $5,000 < $65,000 > $65,000 Palm Beach Gardens < $5,000 < $65,000 > $65,000 Wellington < $5,000 < $65,000 > $65,000 Boynton Beach < $5,000 < $50,000 > $50,000 Deerfield Beach < $5,000 < $30,000 > $30,000 Ocean Ridge < $5,000 < $25,000 > $25,000 Average < $4,833 < $45,555 > $45,555 Palm Beach < $3,500 < $35,000 > $35,000 Highland Beach - Current < $2,500 < $25,000 > $25,000 Page 23 Procurement Thresholds by Municipality One Quote Three Quotes Formal Solicitation Delray Beach < $5,000 < $65,000 > $65,000 Palm Beach Gardens < $5,000 < $65,000 > $65,000 Wellington < $5,000 < $65,000 > $65,000 Boca Raton < $7,500 < $50,000 > $50,000 Highland Beach - Proposed < $10,000 < $50,000 > $50,000 Boynton Beach < $5,000 < $50,000 > $50,000 Average < $4,833 < $45,555 > $45,555 Palm Beach < $3,500 < $35,000 > $35,000 Deerfield Beach < $5,000 < $30,000 > $30,000 Ocean Ridge < $5,000 < $25,000 > $25,000 Highland Beach - Current < $2,500 < $25,000 > $25,000 Sorted by Three Quotes / Formal Solicitation Threshold Page 24 1 Purchasing Policy and Procedures Effective MM/DD/2023 Page 25 2 TABLE OF CONTENTS I. PURPOSE 3 II. DEFINITIONS 3 III. ETHICS IN PROCUREMENT 11 IV. PROCUREMENT THRESHOLDS AND APPROVAL LEVELS 13 V. INSURANCE REQUIREMENTS 13 VI. FORMAL SOLICITATIONS 14 VII. INFORMAL SOLICITATIONS 24 VIII. DIRECT ACQUISITION 25 IX. FORM OF CONTRACT 28 X. CHANGE ORDERS 28 XI. TERMINATIONS, EXTENSIONS, AND RENEWALS 29 XII. BLANKET PURCHASE ORDERS 30 XIII. UNBUDGETED PURCHASES 30 XIV. PURCHASES NOT TO BE DIVIDED 30 XV. PROPERTY DISPOSAL 30 PURCHASING CARD POLICY 32 I. PROCEDURES 32 II. DISPUTES 33 III. LOST OR STOLEN CARDS 33 IV. TERMINATING EMPLOYEE 33 V. DISCIPLINARY ACTION GUIDELINES 34 VI. PROGRAM GUIDELINES 34 VII. PROCEDURES AFTER PURCHASE 36 Page 26 3 I. PURPOSE The purpose of this policy is to state the Town’s position regarding the responsibility and authority of purchasing Goods and Services, so as to maximize both the quality and value of the goods and services procured, and to ensure fairness and transparency in the procurement process. This document will clarify purchasing functions and outline purchasing policies, as well as describe departmental relationships, responsibilities, and participation in the procurement cycle. This policy will provide control functions, assure proper record keeping, and confirm purchases in writing to allow the Town to meet the following goals: A. Maintain at all times and under all conditions a continuous supply of Goods and Services necessary for the operation of the Town; B. Encourage and promote fair and equal opportunity for all persons doing, or seeking to do, business with the Town; C. Safeguard the quality and integrity of the Town’s procurement process; D. Ensure compliance with laws and regulations pertaining to the procurement of Goods and Services; E. Manage procurement and inventories of purchased Goods to meet the use requirements of Town departments at the most advantageous cost to the Town; F. Administer procurement contracts and contract amendments; G. Properly dispose of all material and equipment declared to be surplus or obsolete; and H. Ensure the Town provides quality service to our citizens. The philosophy behind this policy is one of separating the need for Goods and Services from the function of negotiation and executing the necessary contractual purchase agreement. II. DEFINITIONS When used in this policy, the following words, terms and phrases, and their derivations, shall be the meaning ascribed to them in this section, except where the context clearly indicates a different meaning, A. ADDENDUM - A change, clarification or correction in the Solicitation Documents, prior to the award of a Contract. Page 27 4 B. AMENDMENT - An agreed upon addition to, deletion from, correction or modification of a Contract. C. ANNUAL CONTRACT - An agreement or Contract, typically for a specified duration, between a supplier and the Town, to furnish Goods or Services usually of an indefinite quantity and delivery schedule, at unit prices provided for under the terms of the Contract. Also known as a term contract, annual agreement or requirements contract. D. AGENT - An Official, Employee, contracted, or subcontracted Person who is authorized to act on behalf of the Town of Highland Beach and represent their interests. E. APPEAL - A specific written objection by an interested Person to a Request for Qualifications, an Invitation for Bid, an Invitation to Negotiate, a Request for Proposal, or an award or proposed award of a Contract, with the intention of receiving a remedial result. F. AVAILABLE LOCALLY - One or more Persons within the Town or immediate surrounding areas are able to provide Goods and Services in a timely manner, and in sufficient quantity and quality to meet a specific need. G. AWARD - Written notice from the Town of acceptance of a bid or proposal deemed by the established authority of the Town to be in the best interest of the Town. H. BID / PROPOSAL BOND - A form of bid security executed by the Bidder (or Proposer) as principal and by a Surety, to guarantee that the Bidder (or Proposer) will enter into a Contract within the time specified in the Invitation for Bid or Request for proposals, and will furnish the necessary bonds and insurance, and meet any other requirements of those documents. I. BIDDER - A person or entity submitting a bid or quote to the Town for the supply of Goods or Services. J. BLANKET PURCHASE ORDER - A type of Purchase Order issued to purchase goods up to a maximum dollar amount from a single vendor over a period of time when commodities, products and services are purchased on a regular and routine basis, and the cost for the item(s) or the specified quantity cannot be easily identified. K. BRAND NAME SPECIFICATION - A specification limited to one or more items by manufacturers’ names or catalogue numbers, often used to keep standardization with existing parts. L. BUYING COOPERATIVE OR ALLIANCE - A group of public entity purchasers organized for the purpose of creating contracts or pricing agreements in order to take advantage of group or quantity buying discounts or special pricing from which members of the group can benefit. Page 28 5 M. CAPITAL EXPENDITURE ITEM - An item that generally has a normal life expectancy of one year or more, is a complete entity within itself, is distinguished from components, and has a minimum cost of $5,000. N. CCNA - Consultants Competitive Negotiation Act, which provides regulations on the acquisition of professional services pursuant to section 287.055, Florida Statutes. The CCNA applies to those services within the scope of the practice of architecture, professional engineering, landscape architecture, or registered surveying and mapping, as defined by the laws of the state, or those performed by any architect, professional engineer, landscape architect, or registered surveyor and mapper in connection with his or her professional employment or practice. O. CHANGE ORDER - A written modification to a contract or purchase order, which amends one or more of the following: the scope of services, contract cost, contract time, or contract quantities. P. COMPETITIVE AWARD - A procurement based upon the outcome of one of the competitive processes set forth in this Policy, where award is made based on the lowest quotation or Bid submitted by a responsible and responsive Bidder or to the most qualified or advantageo us Proposer based on the qualitative and/or quantitative factors identified for the procurement. A Competitive Award can be made even if only a single bid or proposal has been received from a Bidder or Proposer who is determined to be responsible and responsive. Q. CONFIDENTIAL INFORMATION - Any information which is available to an employee only because of the employee's status as an employee of the Town of Highland Beach and is not a matter of public knowledge or available to the public upon request. R. CONSTRUCTION - The process of building, altering, improving, or demolishing any public structure or building, or other public improvements of any kind to any public real property. The term “Construction” does not include the routine operation, repair and/or maintenance of existing structures, buildings, or real property. S. CONTRACT - All types of Town agreements for the purchase or disposal of Goods, Services, Professional Services or real property regardless of what they may be called, including contracts for a fixed price, cost plus a fixed fee, incentive contracts, and contracts providing for the issuance of job or task orders, leases, letter contracts and purchase orders. Contracts also include amendments, modifications, and supplemental agreements with respect to any of the foregoing. Every Contract must be duly authorized and approved prior to execution. T. CONTRACTOR - Any person or business having a Contract with the Town of Highland Beach to perform a service or sell a product. U. CONTINUING PURCHASE CONTRACT - A Contract procured under this policy with one or more Page 29 6 Vendors based on general specifications and/or scope of work, for which award of specific scopes of work is intended periodically during the Contract term as the need arises. Pricing and/or rates may be defined in the original Contract or by Amendment at the time that specific scopes of work are awarded. V. CONTRACT EXTENSION - An Amendment to a Contract that includes an increase in the term of a Contract, for which no options to renew the Contract beyond the current expiration date exist. W. CONTRACT RENEWAL - An exercise of an approved, existing option to increase the term of a Contract. Options to renew a Contract are often done in annual increments. X. DEBARMENT - A disqualification of a business or person from receiving invitations for Bids, Requests for Proposals, or the award of Contracts by the Town, because of previous illegal or irresponsible action, for a specific period of time commensurate with the gravity of the offense or the failure or the inadequacy of performance. Y. DESIGNEE - A duly authorized representative of a person holding a superior, higher-level position. Z. DISCOUNT-FROM-LIST CONTRACTS - Contracts whereby price is determined by applying a percentage discount from an Established Catalog Price. This type of Contract is only to be used when the Support Services Department determines that this contracting methodology is in the best interest of the Town. AA. E-PROCUREMENT (ELECTRONIC PROCUREMENT) - Conducting all or some of the procurement function on the internet. The requirement to submit proposals or pricing for a sealed competitive procurement method through an electronic platform as designated by the Town. BB. EMPLOYEE - An individual drawing a salary or wage from the Town, whether on a full- time or part-time basis. CC. EMERGENCY PROCUREMENT - Any procurement of Goods or Services in the context of an Emergency. DD. EMERGENCY - A situation that occurs suddenly and unexpectedly and demands immediate action to prevent delays which may vitally affect the health, safety, or welfare of the public or Town Employees or affects the continuation of services to the citizens, and/or serious loss or injury to the Town. Emergency shall also mean a condition, malfunction, or occurrence in which the immediate procurement of an item (i.e. Good, Services, or Professional Service) is essential to comply with regulatory requirements. EE. ENVIRONMENTALLY PREFERABLE GOODS AND SERVICES - Goods and Services that have a lesser or reduced negative effect on human health and the environment when compared with Page 30 7 competitive Goods and Services that serve the same purpose. FF. FISCAL YEAR - The period of time beginning on October 1 of any year and ending September 30 of the following year. GG. GIFTS - As set forth in Section 2-444 of the Palm Beach County Code of Ethics and as otherwise defined in Section 2-442 of that Code and Section 112.312, Florida Statutes. HH. GOODS or COMMODITIES - Supplies, apparatus, materials, equipment, and other forms of tangible personal property used by a Town department in the accomplishment of its responsibilities. II. INVITATIONS TO BID (ITB) - All documents utilized for soliciting bids, including those attached or incorporated by reference. These include a scope of work and all contractual terms and conditions applicable to the procurement. Bids are requested when requirements are clearly defined, price is the major determining factor for award, and a formal sealed submittal is required. JJ. INVITATION TO NEGOTIATE (ITN) - Documents used for soliciting competitive proposals in which negotiation of price and other factors is to commence after receipt of proposals and prior to recommendation of award. This process may be used when the scope of work is complex or difficult to define, if strict comparison of Services or Goods required may be difficult because components are likely to vary among Proposers or in any situation when it is in the Town’s best interest to negotiate prior to recommendation of award to obtain the Services or Goods that best meet the Town’s needs, price and other factors being considered. KK. LATE BID/PROPOSAL - A Bid or proposal received after the time or date such bid or proposal was due, as stated in the Solicitation Documents. LL. LIFE CYCLE COST ASSESSMENT - The comprehensive accounting of the total cost of ownership, including initial costs, energy and operational costs, longevity and efficacy of service and disposal costs. MM. MULTIPLE AWARD SCHEDULE CONTRACT - A Contract based upon one solicitation awarded to two or more Vendors to supply Goods or Services. NN. NEGOTIATED AWARD - A procurement made as the result of negotiations between the Town and a Supplier, such as a Sole Source Procurement or Single Source Procurement or another instance, including competitive Invitation to Negotiate, where a Contract award based on direct negotiations with a Supplier of Goods or Services is appropriate. Page 31 8 OO. NOTICE TO PROCEED - The written notice, issued by the authorized Town employee to the successful bidder or proposer to proceed as directed. PP. OFFICIAL - Any elected or appointed person who holds office or serves in a position of public capacity. QQ. OPEN-END CONTRACT (EVERGREEN) - A contract whereby an indefinite quantity of supplies, services, or construction is to be procured over an identified time span, as and when needed. RR. PAYMENT TERMS - The established due date for payments by the Town to pay an invoice. Absent any agreement otherwise stated or as otherwise required by law, the Town’s payment term will be Net 30. SS. PERFORMANCE/PUBLIC CONSTRUCTION BOND - A bond provided by a contractor/supplier in which a surety guarantees to the Town that the Goods are delivered or the Services are performed in accordance with the Contract documents. A letter of credit issued by a financial institution that meets the Town’s requirements may, at the discretion of the Town, be substituted for the performance bond. TT. PERSON - Any business, entity, company, firm, individual, union, committee, club or other organization or group of individuals. UU. PRACTICABLE - Satisfactory and within reason when considering price, performance, availability, compatibility with specified operation, and public safety. VV. PRE-QUALIFICATION - The part of a competitive procurement process in which the Town determines, based on standards developed for a specified product or service, which interested Vendors meet those standards and are eligible for further consideration in the purchasing process. WW. PROCUREMENT CARD (P-CARD) - A payment method whereby authorized employees use a Town issued credit card to directly purchase Goods or Services within the established guidelines of the Town’s Procurement Card Policy. XX. PRODUCT EVALUATION - The evaluation of a product to help determine its usefulness in meeting the Town requirement or specification. YY. PROFESSIONAL SERVICES - Services rendered by an independent contracting individual or firm having expertise in a particular industry or subject matter due to specialized education, training, licensure or skill, and consisting primarily of advice reports, conclusions, recommendations or other outputs resulting from the time and effort of the service provider, as opposed to the acquisition of specific commodities, or of services not requiring any specialized education, Page 32 9 licensing, training or skill (e.g. janitorial services). Professional Services include but are not limited to evaluations, consultations, management systems, management consulting, compiling statistical data, support of planning and operating activities, appraisal services, and research and development studies or reports (e.g., accounting services, actuarial consulting services, legal services, financial advising, etc.). ZZ. PROPOSER - A Person submitting a proposal or qualifications to the Town for the supply of Goods, Services, or Professional Services. AAA. PURCHASE ORDER - A document approved and issued by the Purchasing Agent and accepted by the Vendor to obtain Goods, Commodities and Services as governed by the Town of Highland Beach terms and conditions. BBB. PURCHASING - The process of securing materials, services, repairs, leases and rentals necessary for the operation and support of the Town. The renewal, renegotiations and changes to Contracts, leases and agreements are functions of purchasing. CCC. PURCHASING AGENT – Town Manager or designee appointed to administrate solicitations on behalf of the Town. DDD. REQUEST FOR PROPOSALS (RFP) - All documents utilized for soliciting proposals for Goods, Services, or Professional Services, including those attached or incorporated by reference. These include a scope of work and all contractual terms and conditions applicable to the procurement. This method is used when factors in addition to price are considered for award. EEE. REQUEST FOR QUALIFICATIONS (RFQ) - All documents utilized for soliciting qualifications for Goods, Services, or Professional Services. FFF. REQUISITION - An internal document, provided by a department to the Purchasing Agent, that contains the fund source, approvals, descriptions, quantities and other information about the Goods, Services, or Professional Services in order to proceed with the procurement. The Requisition becomes valid when properly completed and approved. GGG. RESPONSIBLE BIDDER OR PROPOSER - A Person, who, in the exclusive judgment of the Town, (a) has the capability in all respects to fully perform the Contract requirements; and (b) the integrity, experience, qualification, and reliability which assures good faith performance. HHH. RESPONSIVE BIDDER OR PROPOSER - A Person, who, in the exclusive judgment of the Town, has submitted a bid or proposal that conforms in all material respects to the Solicitation Documents. Page 33 10 III. SERVICES - Any performance of effort or labor, for which the Town has contracted other than Professional Services or services classified as construction. Services include, but are not limited to, janitorial, landscaping, and street striping. JJJ. SHORTLISTING - The part of a competitive procurement process in which the Town determines, based on criteria developed for a specified Good, Service, or Professional Service which of the interested Vendors are the best qualified to be eligible for further consideration in the purchasing process. KKK. SINGLE-SOURCE PROCUREMENT - Identifying and using, without first completing a competitive process, one source for Goods or Services among others in a competitive marketplace, which, for justifiable reasons, is found to be most advantageous for the purpose of fulfilling a given Purchasing need of the Town. LLL. SOLE-SOURCE PROCUREMENT - Identifying and using, without first completing a competitive process, one source for Goods or Services, when that source is the only one available that can fulfill a given Purchasing need of the Town. MMM. SOLICITATION DOCUMENTS - An Invitation for Bids, Request for proposals, Request for Qualifications, or an Invitation to Negotiate including all of the associated forms and documents of each solicitation, or any other types of documents used by the Town to procure Goods, Services, or Professional Services. NNN. SPECIFICATION OR SCOPE OF WORK - Any description of the physical or functional characteristics, or of the nature of Goods, Services, or Professional Services. Specifications or Scope of Work may include any function and other criteria that will be required to perform the work and a description of any requirement for inspection, testing, or delivery. OOO. SUPPLIER, MERCHANT OR VENDOR - A Person currently supplying or in the business of supplying Goods, Services, or Professional Services. PPP. SUPPORT SERVICES DEPARTMENT – The department tasked with overseeing and administering procurement operations. QQQ. SURETY - An organization who, for a consideration, promises in writing to make good the debt or default of another organization. The Surety must be satisfactory to the Town and licensed to do business in Florida. RRR. THE USING DEPARTMENT (USER) - The department which has the authority and responsibility for determining the need for an item or service, its related specifications, and need date. The User is responsible for funding the need and advising Purchasing of the approved funding and the specific budget account number. The User is responsible for preparing solicitation documents, purchase Page 34 11 requisitions, purchase orders, and gathering the requisite information (quotations) given the pricing thresholds outlined in this policy. The User is responsible for authorizing the purchases of all materials, services, repairs, leases and rentals in which the negotiated price exceeds the approved funding. SSS. THIRD PARTY CONTRACTOR - A vendor under written contract with the Town. TTT. THRESHOLD - A monetary limit or level that defines specific procurement actions or policies to be applied. UUU. TOWN - The Town of Highland Beach and, as the context warrants, those persons or bodies authorized to act on its behalf, including but not limited to the Commission, Committees, and staff. VVV. TOWN COMMISIONER - Any person who is an elected Town official. WWW. TOWN STANDARD - Identifying and using, without first completing a competitive process, one source for Goods or Services among others in a competitive marketplace, which, for justifiable reasons, is found to be most advantageous for the purpose of fulfilling a given Purchasing need and which meets Town requirements for performance, consistency, compatibility or other salient characteristics. III. ETHICS IN PROCUREMENT Each person involved in the procurement process must adhere to a high standard of ethics. All employees, officers, commissioners, and board members shall be subject to and must abide by the rules and regulations contained in the Palm Beach County Code of Ethics, Palm Beach County Inspector General Ordinance as well as all State laws regarding procurement. Procurement information shall be a public record to the extent provided in Chapter 119, Florida Statutes, and shall be available to the public as provided in such statute and any other applicable statute. All contracts must contain the following, or similar, provision: A. Conflict of Interest The Contractor shall take appropriate steps to ensure that neither it nor any of its officers or employees is placed in a position where, in the reasonable opinion of the Town, there is or may be an actual conflict, or a potential conflict, between the pecuniary or personal interests of the Contractor or any of its officers or employees and the duties owed to the Town under the provisions of this Contract. The Contractor will disclose to the Town the particulars of any such conflict of interest which may arise during the term of this Contract including any extensions. A conflict of interest shall be determined in accordance with the policies and ordinances of the Page 35 12 Town, the Palm Beach County Code of Ethics, and applicable Florida Statutes. B. Prohibition Against Contingent Fees The Contractor/Consultant warrants that it has not retained a person to solicit or secure this Town of Highland Beach Contract upon any agreement or understanding for a commission, percentage, brokerage or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies for the purpose of securing business. Contracts pursuant to the CCNA shall include the following provision regarding contingent fees: The architect (or registered surveyor and mapper or professional engineer, as applicable) warrants that he or she has not employed or retained any company or person, other than a bona fide employee working solely for the architect (or registered surveyor and mapper or professional engineer, as applicable) to solicit or secure this agreement and that he or she has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee working solely for the architect (or registered surveyor and mapper or professional engineer, as applicable) any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or making of this agreement. If this provision is breached, the Town shall have the right to terminate the agreement without liability and, at its discretion, deduct from the contract price, or otherwise recover, the full amount of the fee, commission, percentage, gift, or consideration. C. Unauthorized Purchases No purchases of Goods and Services shall be made in the name of the Town of Highland Beach or one of its departments, except such as is required for official use by the Town of Highland Beach or one of its departments. Purchases in the name of the Town of Highland Beach or a department for personal use by an individual or for other than official use are prohibited, and no Town of Highland Beach funds will be expended or advanced therefore. D. Disclaimer of Responsibility for Improper Purchasing The Town may disclaim responsibility and liability for any purchase, expenditure, or agreement for expenditure arising from a procurement made in its name, or in the name of any governmental body under its authority, by an unauthorized person or any person acting outside this Policy, or the authorization or delegation as provided in this Policy. The expense of any such disclaimed transaction will become the personal liability of the individual who acted improperly. IV. PROCUREMENT THRESHOLDS AND APPROVAL LEVELS Page 36 13 Personal Property, Commodities, Services, and Construction Total Purchase Amount Procurement Process Approval Levels Purchase Type $0 - $10,000 One Written Quote Requesting Department Head Finance Director Town Manager Purchase Order $10,000.01 - $50,000 Three Written Quotes* Requesting Department Head Finance Director Town Manager Purchase Order $50,000.01 & over Sealed Competitive* Requesting Department Head Finance Director Town Manager Town Commission Executed Agreement and Purchase Order *Direct Acquisition Procurement method may be utilized as outlined in Section VII. V. INSURANCE REQUIREMENTS Insurance is required to safeguard the Town from all claims resulting from damage to property and/or injury to persons caused by the vendor or his/her actions. Any vendor performing onsite services shall be required to obtain, at their own expense, all minimum insurance coverage required under the terms and conditions of all Bids (ITB), Request for Proposals (RFP), Request for Qualifications (RFQ), Contracts, Leases, and Agreements. The Town requires appropriate insurance coverage listing the Town of Highland Beach as an “Additional Insured.” This is accomplished by providing a Certificate of Insurance listing the Town as "Certificate Holder" and "The Town of Highland Beach is Additionally Insured as respect to liability". Insurance companies providing insurance coverages must have a current rating by A.M. Best Co. of “B+” or higher. The Town may accept an insurance contract or binder as proof of insurance if a Certificate is provided upon selection of the vendor. The Purchasing Agent shall review the insurance coverage and limits for the Certificate of Insurance to ascertain that the insurance requirements will be met. No Bid, RFP, RFQ, Contract, Agreement, Leases, etc., shall be awarded or purchase order issued until notification is received from the Purchasing Agent that the Certificate of Insurance satisfactorily meets the insurance requirements of the Town. This includes "piggy-backing" of other governmental entity bids. VI. FORMAL SOLICITATIONS Page 37 14 Acquisitions of or contracts for non-real property, goods, or services where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00 shall be subject to a Sealed Competitive Method, unless the Town utilizes one of the direct acquisition methods as provided in this policy. For purchases exceeding $50,000, the ordering department must consult with the Support Services Department on the appropriate Sealed Competitive Method. A. Invitations to Bid Invitations to Bid are utilized where price, responsiveness, and responsibility are the sole determining factors. 1. The ordering department shall work in conjunction with the Support Services Department to prepare a Town of Highland Beach Invitation to Bid and submit to the Town Attorney for legal review. The Invitation to Bid shall include specifications and all contractual terms and conditions applicable to the procurement. 2. Following review, the Invitation to Bid is then advertised on DemandStar (or other online procurement services provider), the Town’s website, with applicable trade associations, and/or published in a newspaper of general paid circulation in Palm Beach County as required by State of Florida Law. 3. All responses submitted pursuant to the Invitation to Bid shall be submitted electronically unless otherwise stated in the solicitation documents through the Town’s e-bidding platform and shall remain sealed until they are opened publicly on DemandStar (or other applicable online procurement services provider) at the date and time, stated in the Invitation to Bid, or as may be amended by addendum. Bids shall be opened publicly at the time and place designated in the public notice of the Invitation to Bid. The amount of each bid and the name of each bidder shall be recorded. 4. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this policy. Bids shall be evaluated based on the requirements set forth in the Invitation to Bid, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle costs. 5. Correction or withdrawal of inadvertently erroneous bids before or after bid opening may be permitted where appropriate and when in accordance with law. Mistakes discovered before bid opening may be modified or withdrawn by written notice received in the office designated in the invitation for bids prior to time set for bid opening. In general, bidders Page 38 15 should not be permitted to change a bid after bid opening. In rare cases, the Town may permit the correction of a bid if the bidder is able to present clear and convincing evidence that a mistake of a nonjudgmental character was made, the nature of the mistake, and the bid price actually intended. For example, mistakes made in the multiplication of unit prices and quantities will be resolved in favor of the unit price, and discrepancies between the indicated sum of any column of figures and the correct sum thereof will be resolved in favor of the correct sum. Town staff should consult with the Town Attorney before allowing a change in a bid. After bid opening, no changes in bid prices or other provisions of bids prejudicial to the interest of the Town or fair competition shall be permitted unless it is otherwise required by law. In lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if the bidder can show by clear and convincing evidence the following: 1) The mistake is clearly evident on the face of the bid document, but the intended correct bid is not similarly evident; or the bidder submits evidence which clearly and convincingly demonstrates that a mistake was made; 2) The mistake would be a severe hardship on the bidder and enforcement would be unconscionable; and 3) The mistake was clerical and/or inadvertent (i.e., the mistake occurred regardless of the exercise of ordinary care) and not the result of gross or willful negligence of the bidder (e.g., carelessness or lack of good faith, etc.). Further, if the mistake occurs in connection with competitive bidding on public works, the bidder must also establish the following additional factors by clear and convincing evidence: 1) The bid was submitted in good faith; and 2) The mistake, when discovered, was promptly reported to the Town before the bid was accepted. The Town may require the bidder to reimburse the Town for any reasonable and documented costs incurred by the Town due to the bidder’s mistake, if any. All decisions to permit the correction or withdrawal of bids, based on bid mistakes, shall be supported by a written determination made by the Support Services Department. After a bid is accepted by the Town, the bidder is bound by its bid unless the acceptance is a result of mutual mistake or a unilateral mistake accompanied by inequitable conduct by the other party. The contract shall be awarded with reasonable promptness by appropriate written notice to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids. In the event the low responsive and responsible bid for a project exceeds available funds, the Town Manager is authorized, when time or economic considerations preclude re-solicitation of bids, to negotiate an adjustment of the bid price as long as the scope of work is not changed with the low responsive and Page 39 16 responsible bidder, in order to bring the bid within the amount of available funds. 6. If only one responsive bid for a commodity or contractual service is received, in response to an Invitation to Bid, an award may be made to the single Bidder if the Town Manager finds the price submitted is fair and reasonable, and that other prospective bidders had reasonable opportunity to respond, or there is not adequate time for re-solicitation. Further, the Town Manager reserves the right if in the best interests of the Town to negotiate with the sole Bidder for the best terms, conditions and price. The Town Manager shall document the reasons that such action is in the best interest of the Town. Otherwise, the bid may be rejected and: a) New bids or offers may be solicited. b) The sole bid may be rejected. c) If the Town Manager determines in writing that the need for the supply or service continues, but that the price of the one bid/proposal is unreasonable and there is not time for re-solicitation or re-solicitation would likely be futile, the procurement may then be conducted as a Sole Source Procurement or Emergency Procurement, as appropriate. 7. The ordering department shall then prepare a Town of Highland Beach purchase requisition form requesting authorization to accept the best submittal as determined by price, responsiveness, and responsibility. The purchase requisition must then be approved by the department head. 8. If less than two responsive bids, proposals, or replies for commodity or contractual services purchases are received, the Town Manager should negotiate for the best terms and conditions. The ordering department shall document the reasons that such action is in the best interest of the town in lieu of re-soliciting competitive sealed bids. 9. The requisition form, with all supporting documentation attached, must be submitted to the Finance Department for verification of the availability of unencumbered budgeted funds. The requisition form must then be approved by the Finance Director or his/her designee. 10. The requisition form, with all supporting documentation attached, is submitted to the Town Manager for approval and returned to the Finance Department. 11. The Finance Department will forward all applicable information to the Town Attorney for review and draft of a written agreement, when applicable. 12. The written agreement along with purchase requisition and supporting documentation is Page 40 17 then submitted to the Town Clerk for inclusion on the next available Town Commission agenda for Commission review and final approval. 13. Upon receipt of a completed and fully executed written agreement the Finance Department will issue a Purchase Order Number and return a copy to the ordering department. 14. The ordering department must attach a copy of the completed Purchase Requisition/Purchase Order to the invoice(s) when submitted to Finance for payment. B. Requests for Proposals, Requests for Qualifications, and Invitations to Negotiate These methods are utilized when price, responsiveness, and responsibility are not the sole determining factors (i.e., professional services, etc.). The procurement of professional services subject to the CCNA shall comply with the procedures set forth in the CCNA. 1. The ordering department shall prepare a Town of Highland Beach Request for Proposals, Qualifications, or Invitation to Negotiate and submit to Department Head, Finance Director, and Town Attorney for review. The Request for Proposals/Request for Qualifications/Invitation to Negotiate shall state the relative importance of price, if appropriate, and all other evaluation factors. 2. Following review, the Request for Proposals, Qualifications, or Invitation to Negotiate is then delivered to any known vendors that can provide a response, advertised on the Town’s website, advertised with applicable trade associations, and/or published in a newspaper of general paid circulation in Palm Beach County as required by State of Florida Law. 3. Pursuant to the Request for Proposals, Qualifications, or Invitation to Negotiate, the Town Manager may appoint a Selection Committee to review the submissions received by the Town. 4. All responses submitted pursuant to the Request for Proposals, Qualifications, or Invitation to Negotiate shall be submitted electronically through the Town's e-bidding platform and remain sealed until they are opened publicly on the date and time and location stated in the Request for Proposals, Qualifications, or Invitation to Negotiate or as may be amended by addendum. Submittals shall be opened publicly at the time and place designated in the public notice of the Request or Invitation. The amount of each bid and the name of each bidder shall be recorded. 5. No proposals shall be opened until the time designated in the public notice of the Request or Invitation. A register of proposals shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to Page 41 18 identify the item offered. 6. The Selection Committee shall review and rank the responses received according to the language of the Request for Proposals, Qualifications, or Invitation to Negotiate. 7. Following the review and ranking, the Selection Committee will convene to finalize their scores and ranking of respondents. 8. The ordering department shall prepare a Town Commission Agenda Memo to approve the ranking results and authorize staff to negotiate a contract with the highest ranked response or as described in the Request for Proposals, Qualifications, or Letters of Interest. 9. Following Commission authorization, Staff shall negotiate a contract with a respondent pursuant to the language of the Request for Proposals, Qualifications, or Letters of Interest. 10. Once negotiations are completed, award shall be made to the responsible responder whose proposal is determined in writing to be the most advantageous to the Town based on evaluation factors set forth in the Request for Proposals/Request for Qualifications/Invitation to Negotiate. 11. The written agreement and supporting documentation are submitted to the Town Clerk for inclusion on the next available Town Commission agenda for their review and final approval. C. Pre-bid and Pre-proposal Conferences A pre-bid conference shall be scheduled for Invitations to Bid where it is deemed advisable to allow potential proposers to consult with Purchasing staff and the requesting department(s) to ensure clarity of the required goods or services and, if applicable, to view the site where the work is to be performed. A pre-proposal conference shall be scheduled under all Requests for Proposal solicitations. This conference shall be scheduled roughly in the middle of the solicitation period to allow enough time for vendors to prepare for the conference, and to consider the information provided during the course of the conference. Attendance at Pre-bid and Pre-proposal conferences by vendors is generally optional, unless it concerns a construction project. However, vendor attendance at such conferences may be made mandatory depending upon the specific requirements of the project. Mandatory conferences may serve to limit competition and shall be the exception to the procedure. If a vendor fails to attend a mandatory pre-bid or pre-proposal conference, then that vendor shall not be allowed to submit a proposal. D. Addenda to Solicitation Documents Page 42 19 There may be occasions when it will be necessary to change the specifications, terms, or conditions of a given solicitation during the course of the proposal period. Such changes may be required in response to requesting department requests or clarifications, contractor questions (submitted in writing per the "Cone of Silence"), or other reasons. Such changes shall be formalized by the issuance of solicitation addenda by the Finance Department, to all potential vendors that have obtained the solicitation document. The addenda becomes part of, and supersedes, the solicitation document. E. Tied Bids Tied bids are offers where one or more responsive and responsible bidders offer the same low price for an item or group of items, depending on the method of award. In such instances, the Purchasing Agent will request best and final offers (BAFOs) from the bidders that offered the same price. The BAFOs must be requested at the same time or soon after the preliminary tabulation is provided to all responding proposers. This allows all proposers to see the prices that were submitted, and the proposers that offered the same pricing. Request for best and final offers must include a due date (close of business is acceptable) and may be emailed directly to the Purchasing Agent or delivered to the Support Services Department. In the event responses to best and final offers result in another tie, the tie shall be broken by the Purchasing Agent by flipping a coin in the presence of the Finance Director or their designee. F. Formation and Performance of Evaluation/Selection Committees The Purchasing Agent is responsible for the review of all proposals for responsiveness before distributing them to the Selection Committee. A proposer is considered responsive if the proposal conforms in all material respects to the terms and conditions in the solicitation. G. Selection Committee Team Members The Purchasing Agent will determine the number and makeup of the Selection Committee and shall serve as the Selection Committee Chairperson. Each member must:  Have no personal or financial interest in any vendor or firm which has submitted a proposal to the Town.  Have professional experience and/or a related interest so that the recommendations of the Committee can be supported and defended legally and ethically.  Have professional experience and/or a related interest so that the recommendations of the Committee will lead to the selection of a vendor which will provide goods or services that is the best value for the Town. H. Initial Meeting Of The Selection Committee Page 43 20 The Purchasing Agent shall conduct an initial meeting (Kick-Off Meeting) with the Selection Committee to ensure that each member has a clear understanding of their duties and responsibilities in the selection process. A copy of these guidelines, the solicitation and any addenda, each proposer's submittal, and a copy of the evaluation criteria will be distributed to Committee members. I. Conflict Of Interest Once proposals have been received, and it is known which proposers are involved in the evaluation competition, each member of the Selection Committee will be informed. Each member will be asked if the member has a personal or financial interest in any proposer, and if the member understands and can perform impartially within the Selection Committee guidelines. If a conflict of interest exists or appears to exist, that member will be disqualified from the Committee. J. Committee Rules And Procedures All evaluators on the Selection Committee are required to apply sound and unbiased judgment in awarding points to the proposals for the purpose of ranking them. All Selection Committee members must read the solicitation thoroughly and have a clear understanding of the requirements and evaluation criteria before attempting to evaluate the proposals. All questions should be directed to the Purchasing Agent, who is the Chairperson of the Selection Committee. 1. The Selection Committee meetings must follow the requirements of Florida Statute 286.011 for public meetings and meetings must be noticed at least 72 hours in advance. These meetings are open to the general public (unless exempt pursuant to section 286.0113, Florida Statutes), which may include proposers which have submitted responses to the Town's solicitations. Minutes will be taken at all Selection Committee Meetings. Meetings may be recorded; and all recordings will be made available for the general public to listen to upon scheduling an appointment with the Finance Department. 2. Except as authorized under section 286.0113, Florida Statutes, Selection Committee members are prohibited from communicating with anyone, either verbally or in writing, regarding the proposals, outside of the scheduled and publicly noticed Selection Committee meetings. Violations of § 286.011, Florida Statutes are very serious and have legal and ethical ramifications. If a vendor or proposer contacts a Committee member, the member must refer the vendor or proposer to the Town Clerk. Selection Committee members are prohibited from participating in individual meetings, informal consultations, lunches, entertainment or any other direct or indirect contact with vendors or proposers. 3. After receipt of proposals, each Committee member must review and evaluate each Page 44 21 proposal independently, without discussing their evaluation with other Committee members. 4. At the Selection Committee Meeting, the Committee must make a determination as to whether or not the RFP process generated enough competition through a satisfactory number of responses to the request. The Committee would then either: a) Recommend an acceptable proposal based on the evaluation process; or b) Recommend that the Commission reject all proposals received; thereafter restructure the RFP/process in an effort to obtain more responses. 5. Evaluations must be based on the criteria established in the solicitation. All criteria must be scored. If a member elects to score only some of the proposals or criteria, the evaluations completed by that member will not be counted in order to prevent skewing of the final scores. 6. Evaluations must be both qualitative and quantitative based on the evaluation criteria outlined in the solicitation. If a member scores a zero (0) in any category, that member must identify the deficiency and provide a written explanation for the zero (0) score. All scores and comments become part of the solicitation and contract file and are subject to disclosure under the Florida Public Records Law. Committee members should have a reasonable, rational, and consistent basis for their scores, and be prepared to explain their scores in the event of a protest or inquiry. 7. Prior to the Selection Committee meeting in a public forum, any questions, clarifications, or additional information requested from a proposer by a member must be submitted in writing through the Purchasing Agent. The Purchasing Agent is responsible for obtaining a written response from the proposer and sharing the response with all Committee members prior to the first publicly advertised meeting. 8. Score sheets must be completed prior to the Committee meeting where rankings will be determined. After the Selection Committee members have independently completed the initial review and scoring of all proposals, the Committee will convene at a publicly posted meeting to openly discuss the proposals. Members may adjust their initial scoring based on their interpretation of any additional information gained from the Committee's discussions. After all discussions have been completed each Committee member shall finalize their scores. Each member is required to sign his/her score sheet and any note pages and submit them to the Chairperson as part of the public record. 9. Score sheets will be tabulated and ranked from the highest to the lowest by the Page 45 22 Chairperson. 10. Depending on the outcome of the scoring, the Committee will recommend one of the following: a) Award the contract to the highest ranked proposer; or b) Shortlist the top ranked proposers and request scheduling of oral presentations. 11. If the Committee recommends awarding the contract to the highest ranked proposal, no further action is required by the Selection Committee. 12. If oral presentations are requested, the Selection Committee shall identify which proposers will be asked to provide oral presentations. The Selection Committee may request oral presentations from as many proposers as necessary; however, it is recommended that the Committee come to a consensus and request presentations only from the top-ranked proposers. 13. When oral presentations are requested by the Selection Committee, the members shall submit a written request to the Chairperson for specific areas needing additional explanation and/or clarification or any other information the Committee would like the proposers to provide during the oral presentations. These questions must be submitted at a public meeting. 14. All proposers selected for oral presentations will be notified in writing of the publicly posted meeting by the Committee Chairperson or designee, identifying the date, time, location, with a uniform script listing the specific questions or information requested by the Selection Committee to be addressed at the presentation. 15. Prior to the oral presentations, the Chairperson will provide the evaluation criteria and score sheets to the Selection Committee. 16. During the oral presentations, Committee members will be able to ask questions of the proposers for a clear understanding of each proposer's position. 17. After oral presentations are completed, the Committee will have the opportunity to continue discussions among themselves. After discussions are completed, each member shall finalize their scores. Each member is required to sign his/her scoring sheet and any note pages and submit them to the Chairperson as part of the public record. 18. Score sheets will be tabulated and ranked from the highest to the lowest by the Page 46 23 Chairperson. The award recommendation will be for the proposer with the highest ranked score. 19. The Selection Committee Chairperson shall work with the Town department on a recommendation to award for processing through the Town Manager and/or the Town Commission, as appropriate. K. Cone of Silence Any person participating in a competitive solicitation issued by the Town shall comply with Section 2-355 of the Palm Beach County Code of Ordinances, as amended. L. Protest Procedures Standing. Parties that are not actual bidders, proposers or responders, including, but not limited to, contractors or consultants that do not submit a bid or proposal, subcontractors, material and labor suppliers, manufacturers and their representatives, shall not have standing to protest or appeal any determination made pursuant to this Section. A party will have standing to protest or appeal a determination made pursuant to this Section if that party has a substantial interest to be determined by the Town. For example, if the party protesting/appealing is not the second lowest bidder who would receive the award if the challenge was successful, then that party does not have standing. M. Procedure 1. Upon notification by the Town that a proposer or responder is deemed non-responsive and/or non-responsible, the proposer or responder who is deemed non-responsive and/or non- responsible may file a protest with the Purchasing Agent by close of business on the third business day after notification (excluding the day of notification) or any right to protest is forfeited. It shall be the sole responsibility of such proposer or responder to verify the operating hours of Town Hall. 2. After a Notice of Intent to Award an Agreement is posted, any actual proposer or responder who is aggrieved in connection with the pending award of the agreement or any element of the process leading to the award of the agreement may file a protest with the Purchasing Agent by close of business on the third business day after posting (excluding the day of posting) or any right to protest is forfeited. It shall be the sole responsibility of such bidder, proposer or responder to verify the operating hours of Town Hall. A Notice of Intent to Reject all Proposals or Responses is not subject to the protest procedure. 3. The protest shall be in writing, shall identify the name and address of the protester, and Page 47 24 shall include a factual summary of, and the basis for, the protest. Filing shall be considered complete when the protest and the Protest Bond are received by the Purchasing Agent. The clock located in the Town Clerk’s office shall govern. N. Protest Bond Any proposer or responder filing a protest shall simultaneously provide a Protest Bond to the Town in the amount equaling ten percent (10%) of the recommended award price pertaining to the protested RFP, RFQ, etc., documents. If the protest is decided in the protester's favor, the entire Protest Bond shall be returned to the protester. If the protest is not decided in the protester's favor, the Protest Bond shall be forfeited to the Town. The Protest Bond shall be in the form of a cash or a letter of credit with a bank located in Palm Beach County, Florida. O. Protest Committee The Protest Committee shall review all protests at a public meeting as soon as possible or no later than thirty (30) days after a bid protest is filed. The Town Manager shall appoint the members of the Protest Committee. No member of the Town Commission shall serve on the Protest Committee. The Town Attorney or designee shall serve as counsel to the Committee. The meeting of the Protest Committee shall be opened to the public and all the actual bidders, responders or proposers shall be notified of the date, time and place of the meeting. If the Protest Committee determines that the protest has merit, the Town Manager shall direct that all appropriate steps be taken. If the Protest Committee denies the protest, the protester may appeal to the Town Commission. All the actual responders or proposers shall be notified of the determination by the Protest Committee. The Protest Committee shall terminate upon the award of the contract, or such other time as determined by the Town Commission. P. Stay of award of Agreement or Sealed Competitive Method In the event of a timely protest, the Purchasing Agent shall stay the award of the Agreement or the Sealed Competitive Method unless the Town Manager determines that the award of the Agreement without delay or the continuation of the Sealed Competitive Method is necessary to protect any substantial interest of the Town. The continuation of the Sealed Competitive Method or award process under these circumstances shall not preempt or otherwise affect the protest. Q. Appeals to Town Commission Any actual proposer or responder who is aggrieved by a determination of the Protest Committee may appeal the determination to the Town Commission by filing an appeal with the Town Clerk by close of business on the third Business Day after the protester has been notified (excluding the day of notification) of the determination by the Protest Committee. The appeal shall be in writing and shall include a factual summary of, and the basis for, the appeal. Filing of an appeal shall be considered complete when the appeal is received by the Town Clerk. R. Failure to File Protest Page 48 25 Any actual proposer or responder that does not formally protest or appeal in accordance with this Section shall not have standing to protest the Town Commission's award. VII. INFORMAL SOLICITATIONS Acquisitions of or contracts for non-real property, goods, or services where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be $50,000 or less shall not be subject to a Sealed Competitive Method. The town will utilize the procurement methods outlined below based on the total purchase price. A. Purchase of Items up to $10,000 1. A minimum of one written quote is required. 2. A Town of Highland Beach purchase requisition must be completed by the ordering department and approved by the department head or his/her designee prior to the purchase being made. 3. The requisition, with all supporting documentation attached, must be approved by the Finance Department for verification of the availability of unencumbered budgeted funds. 4. The requisition, with all supporting documentation attached, must then receive final review and approval from the Town Manager or his/her designee. 5. Once fully approved, the requisition is converted to a Purchase Order by the Support Services Department. 6. After conversion to a Purchase Order, the ordering department will receive an automated email notification from the Town’s ERP system that the requested Purchase Order has been issued. B. Purchase of Items $10,000.01 to $50,000.00 1. A minimum of three written quotes are required to demonstrate due diligence in obtaining high-quality goods and services at a commercially reasonable price. When the required number of quotes is not obtained, the ordering department must submit documented evidence and/or written justification for review and authorization by the Town Manager. 2. A Town of Highland Beach purchase requisition must be completed by the ordering department and approved by the department head or his/her designee prior to the Page 49 26 purchase being made. 3. The requisition, with all supporting documentation attached, must be approved by the Finance Department for verification of the availability of unencumbered budgeted funds. 4. The requisition, with all supporting documentation attached, must then receive final review and approval from the Town Manager or his/her designee. 5. Once fully approved, the requisition is converted to a Purchase Order by the Support Services Department. 6. After conversion to a Purchase Order, the ordering department will receive an automated email notification from the Town’s ERP system that the requested Purchase Order has been issued. VIII. DIRECT ACQUISITION PROCUREMENTS A. Professional Services Except as otherwise provided for in Florida Law (e.g., CCNA), contracts for professional services (which include but are not limited to services provided by architects, engineers, surveyors, attorneys, physicians, accountants, actuaries, lobbyists and financial advisors) may be made or entered into by the Town Manager without utilizing a Sealed Competitive Method or the Written Quotations Method. Acquisitions of professional services where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00 are subject to approval by the Town Commission. For those professional services governed by the CCNA, staff shall confirm whether the CCNA procedures are applicable due to the estimated amount of the proposed contract. B. Specialty Goods and Services Acquisitions of or contracts for specialty goods and services (including but not limited to performing artists, artwork, special events, entertainment, and food and beverage) may be made or entered into by the Town Manager without utilizing a Sealed Competitive Method or the Written Quotations Method. Acquisitions of specialty goods and services, where the expenditure by the Town is estimated to be greater than $50,000.00, are subject to approval by the Town Commission. C. Emergency Acquisitions The Town Manager may acquire or contract for non-real property, goods, or services required in contemplation of, preparation for, or during an Emergency without utilizing a Sealed Competitive Method or the Written Quotations Method regardless of the amount. Emergency acquisitions of non-real property, goods or services where the expenditure by the Town is greater than Page 50 27 $50,000.00 must be ratified by the Town Commission as soon as practicable. D. Sole Source The Town may acquire or contract for non-real property, goods or services that are available to the Town from only one source without utilizing the Sealed Competitive Method or W ritten Quotations Method. Sole Source acquisitions where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00 are subject to approval by the Town Commission. E. Town Standard Where the Town has determined that a particular style, brand, make, or model is the only type that meets the Town's requirements for performance, consistency, compatibility or other salient characteristics, and such determination has resulted in there being only one source available to the Town, the Town may acquire or contract for such goods without utilizing a Sealed Competitive Method or the Written Quotations Method. Town Standard acquisitions where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00 are subject to approval by the Town Commission. F. Utilization of Other Governmental Entities' Contracts The Town may acquire or contract for non-real property, goods or services without utilizing a Sealed Competitive Method or the Written Quotations Method where the desired goods or services are the subject of a contract with the State, its political subdivisions or other local governmental entities in the State, with associations in Florida affiliated with state and/or local governmental entities or departments (such as the Florida Sheriffs Association and the Florida Fire Chiefs' Association) or with the United States government or national cooperatives, provided that the contract is based strictly on competitive bidding and not on any preference, and provided that the form of the contract is acceptable to the Town Attorney. Some terms and conditions of the existing contract may be modified by the Town so long as they do not substantially change the purchase. Acquisitions utilizing other governmental entities' contracts where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00 are subject to approval by the Town Commission. Utilization of other government entities' contracts shall only be permitted during the term of the other governmental entity's contract or for one year from the date the other governmental entity awards the bid, whichever is longer. If the Town desires to utilize another governmental entity's contract, the Town shall require the vendor to certify the same pricing, terms and conditions as the original agreement except as amended by the Town Attorney. G. Cooperative Acquisitions Page 51 28 The Town may acquire or contract for non-real property, goods or services without utilizing a Sealed Competitive Method or the Written Quotations Method where the Town participates in joint procurement of non-real property, goods or services with other public entities within the State, including, but not limited to acquisitions made pursuant to interlocal agreements entered into with other governmental entities in accordance with Chapter 163 Florida Statutes. Cooperative acquisitions where the expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00 are subject to approval by the Town Commission. H. Utilities Water, cable, sewer, gas, electrical, internet (wifi), telephone and other utility services may be acquired without utilizing a Sealed Competitive Method or the Written Quotations Method and without Town Commission approval. I. Resale Food, beverages and merchandise purchased for resale, may be acquired without utilizing a Sealed Competitive Method or the Written Quotations Method and without Town Commission approval. J. Employee Benefits and Health Services Employee Benefits and health related services may be procured/renewed directly through a negotiating process conducted by an expert in the field, or to maintain continuity of employee- health records, and not be subject to competitive procurement methods. K. Property, Casualty, Workers Compensation, Liability, Automobile Insurance Insurances may be procured/renewed through a negotiating process and is not subject to competitive procurement methods. L. Best Interest Acquisitions The Town may acquire or contract for non-real property, goods, or services without utilizing a formal solicitation method or written quotations if the Town Commission declares by at least a four-fifths (4/5) affirmative vote that the formal solicitation or written quotations methods are not in the best interest of the Town. The Town Commission shall make specific factual findings that support its determination, and such contracts shall be placed on the regular Town Commission agenda. This provision may not be used when the purchasing or procurement method is prescribed by state law, such as F.S. Sections 287.055 or 255.20, as amended. IX. FORM OF CONTRACT Page 52 29 A. Written Agreements Written agreements shall be utilized for all acquisitions of non-real property, goods or services where the total expenditure by the Town (including expenditures during renewal periods, but not expenditures relating to Change Orders) is estimated to be greater than $50,000.00. The Town may utilize a written agreement for any acquisition of less than $50,000.01 that the Town deems appropriate. All written procurement agreements must be approved as to form and legality by the Town Attorney and executed by the Town Attorney. B. Purchase Orders Where no other form of contract exists, purchase orders, in a form pre-approved by the Town Attorney, shall be utilized for acquisitions of non-real property, goods or services where the total expenditure by the Town is estimated to be greater than $10,000. The Town may utilize a purchase order for any acquisition of $10,000 or less that the Town deems appropriate. No change shall be made to the pre-approved purchase order form without express approval of the Town Attorney. X. CHANGE ORDERS A. Town Commission Approved Contracts 1. Any Change Order that materially expands or alters the scope of the work in a Town Commission approved contract shall be subject to prior approval by the Town Commission. 2. The Town Manager may approve a Change Order provided that it does not alter the scope of the work in a Town Commission approved contract and that the cumulative total of all change orders, for the duration of the contract, does not exceed twenty percent (20%) of the contract amount or $100,000, whichever is less. 3. Any Change Order that extends the original substantial or final completion date of a Town Commission approved contract shall be subject to prior approval by the Town Commission, except for the time allowed under Article VIII. B. Town Manager Approved Contracts The Town Manager is authorized to approve a Change Order to a contract that was not approved by the Town Commission, provided that the Change Order does not cause the total acquisition from the vendor to exceed the aggregate sum of $50,000 during any Fiscal Year pursuant to Article VIII. Page 53 30 XI. TERMINATIONS, EXTENSIONS, AND RENEWALS A. Town Commission Approved Contracts 1. Contracts approved by the Town Commission may be terminated only by the Town Commission. If the Town Manager desires to terminate a Town Commission approved contract, the Town Manager may suspend the work under the contract until the Town Commission makes a final determination. 2. The Town Manager may extend a Town Commission approved contract for up to 90 days. The extension of any Town Commission approved contract for longer than 90 days shall be subject to prior approval by the Town Commission. In the event of an Emergency, the Town Manager may extend a Town Commission approved contract without Town Commission approval, subject to later ratification by the Town Commission. 3. When a contract is entered into by the Town pursuant to Town Commission approval and provides for one or more renewals by affirmative action of the Town, only the Town Commission may approve such renewals. 4. The Town Manager may suspend a Town Commission approved contract for up to 90 days. Suspension of a Town Commission approved contract for longer than 90 days shall be subject to Town Commission approval. B. Town Manager Approved Contracts 1. Contracts that were not approved by the Town Commission may be terminated by the Town Manager. 2. The Town Manager is authorized to extend for up to 120 days any contract entered into by the Town that was not approved by the Town Commission. 3. When a contract is entered into by the Town pursuant to Town Manager approval and provides for one or more renewals by affirmative action of the Town, the Town Manager is authorized to approve such renewals without Town Commission approval. 4. Contracts that were not approved by the Town Commission may be suspended by the Town Manager. Page 54 31 XII. BLANKET PURCHASE ORDERS Blanket purchase orders are used when commodities, products and services are purchased on a regular and routine basis, and the cost for the item(s) or the specified quantity cannot be easily identified (i.e. fuel, routine vehicle maintenance, janitorial supplies, etc.). A blanket purchase order may be issued for a not-to-exceed dollar amount and for a set period of time. Use of blanket purchase orders are not designed to get around the requirement to competitively bid items for known quantities of commodities, products and services (i.e. annual chemical purchases, annual landscape maintenance, etc.). All blanket purchase orders close at the end of the fiscal year. No capital items may be purchased with a blanket purchase order. Blanket Purchase Orders are subject to the Purchasing Procedures defined in this manual. Blanket purchase orders do not require quotes when the not to exceed amount is $10,000 or less. XIII. UNBUDGETED PURCHASES In the event that a department needs to purchase an item or items that are outside of the amount which was originally part of the approved budget for their department, the following procedure will be followed:  Items $50,000 or less must be approved by the Town Manager.  Items over $50,000 must be approved by the Town Commission.  All unbudgeted purchase requests must be accompanied by a memo from the ordering department head explaining the immediate need for the items requested. XIV. PURCHASES NOT TO BE DIVIDED No purchase shall be divided or sub-divided to circumvent the competitive bid requirements of the State of Florida Statutes, Town of Highland Beach Code, or purchasing rules and regulations. XV. PROPERTY DISPOSAL A. Excess, Surplus, and Obsolete Materials It shall be the duty of the User Department Head to report all excess, surplus or obsolete materials to the Support Services Department. At this point, the Support Services Department and Town Manager, in conjunction with the User, will examine alternatives as to the most advantageous disposition of the items. Items could be refurbished or reconditioned, transferred, traded in on new equipment or sold by auction or sealed bid. The Town Manager shall have the authority to dispose of all non-real property that is determined to have a book value or market value (whichever is greater) of less than $2,500 in any manner authorized by Chapter 274, Florida Statutes “Tangible Personal Property Owned by Local Page 55 32 Governments”. Surplus non-real property with a book value or market value (whichever is greater) greater than $2,500 will be subject to Town Manager approval prior to its disposal. 1. The most gainful method for handling an item no longer needed by a department is to transfer it to another department that has a use for the item. 2. In replacing obsolete equipment, it may be financially advantageous to trade-in the old equipment. Requests for bids on the replacement item may call for bid prices with or without trade-in and provide that award may be made either way. 3. Excess, surplus and obsolete items (greater than $2,500) not transferred or traded-in may be consolidated and offered for sale by auction or by sealed bid method. Auctions can be traditional or contemporary including online auctions such as www.govdeals.com or similar websites. The property offered for sale will be on an “AS IS/WHERE IS” basis. The sale will be given public notice. Sealed bids will be opened at the time and place announced with the Town, retaining the right to reject any and all. 4. The Town Manager may declare that any non-real property that is determined by the Town Manager to have reached the end of its useful life and/or may expose the Town to potential liability from its continued use or sale and/or whose disposition cost exceeds its value, is junk. Non-real property declared by the Town Manager to be junk shall be disposed of without receipt of consideration (or, if necessary, at a cost to the Town) and shall be rendered useless. B. Sale to Employees To avoid any appearance of impropriety in the disposition program, it will be the Town’s policy to prohibit the direct sale of surplus property to any Town Employee, Official or Agent. This policy does not prohibit any Town Employee, Official or Agent from extending an offer at a public auction or in the form of a sealed bid. C. Allocation of Proceeds Proceeds from the sale of excess or surplus property will go into the Town’s Fund that held the asset. Page 56 33 PURCHASING CARD POLICY I. PROCEDURES A. The Finance Director or designee shall be the Program Administrator for Purchasing related issues and will administer the Purchasing Card Program for the Town of Highland Beach. B. This policy is applicable to those departments who have identified employees who may use purchasing cards to purchase goods and services allowed under this policy. The decision to issue a purchasing card is the responsibility of the department director with the approval of the Town Manager. C. Since the Town of Highland Beach, not the individual employee, will pay for purchases made with the purchasing card for official Town use, additional controls have been added to these purchasing cards. D. The standard purchasing card limit is $2,500 per billing cycle. Department directors may establish lower limits for their employees. E. Purchasing Card Use 1. The purchasing card shall be used for Town of Highland Beach business only. 2. The purchasing card shall have the cardholder’s name embossed on it and shall only be used by that employee or another employee that has been established as an authorized purchaser on the cardholder’s account. 3. All items purchased using the purchasing card shall be available immediately; purchasing back ordered items is prohibited. 4. The Town is tax exempt and shall not be charged sales tax on any transactions. If the vendor charges sales tax in error, the cardholder must contact the vendor and obtain a credit equal to the amount of the sales tax. 5. All transactions require a sales receipt. A sales receipt may be referred to as an invoice and must include the following: a) Vendor name b) Itemized breakdown c) Grand total price d) Transaction date Page 57 34 II. DISPUTES A. If items purchased with the purchasing card are found to be defective or services faulty, the cardholder has the responsibility to return the item(s) for replacement or refund or have services redone or refunded. If the vendor refuses to replace or refund the item, or redo or refund the service, the purchase will be entered into dispute. B. The cardholder shall notify the credit card provider, the Town’s Program Administrator, and their department head of any dispute situations. III. LOST OR STOLEN CARDS A. Should any employee lose or have their purchasing card stolen, it is the responsibility of the employee to immediately notify the card issuer, their department head, and the Program Administrator of the loss. The appropriate Police Department should also be notified depending on situation, i.e., robbery, burglary, etc. B. The following information must be provided to the department head and the Program Administrator: 1. Complete name as it appears on the card 2. Card number 3. Date police were notified (if stolen) 4. Date card issuer was notified 5. Purchases made on the day the card was lost or stolen C. The department head is required to make a written report to the Program Administrator WITHIN ONE (1) WORKDAY including: 1. Complete information on the loss 2. Date the loss was discovered 3. Location where the loss occurred, if known 4. Purchases cardholder made prior to the loss 5. Any other pertinent information D. Should the card be found, it must be returned to the Program Administrator for destruction. IV. TERMINATING EMPLOYEE A. The Program Administrator, or designee, will be responsible to collect and destroy the purchasing card upon termination, resignation, or retirement. The Program Administrator will notify the issuer and destroy the purchasing card. Page 58 35 B. In the event that the Program Administrator, or designee, is not able to collect the purchasing card when the employee is terminated or otherwise leaves the employment of the Town, the Program Administrator, or designee, shall immediately notify the card issuer by telephone and follow-up with a memo to take action to ensure the purchasing card is voided. C. The Program Administrator, or designee, will confirm at the exit interview that the purchasing card has been turned in. V. DISCIPLINARY ACTION GUIDELINES A. Any incident of improper or unauthorized use of the card shall be immediately reported to the Program Administrator, or designee, and the Town Manager. B. The Program Administrator, or designee, and the Town Manager may suspend or terminate cardholder privileges for improper or unauthorized use, or otherwise in the Town’s sole discretion at any time and without prior notice. C. The appropriate disciplinary action will be taken as per the Town of Highland Beach Personnel Rules and Regulations. Improper or unauthorized use of the card as specified within this policy may subject the employee to appropriate disciplinary action, such as: 1. Written reprimand to be maintained in employee’s personnel file. 2. Suspension without pay. 3. Termination of employment. D. In addition to any administrative and disciplinary action that may be taken, the employee may be required to reimburse the Town of Highland Beach for the total amount of improper charges through a payroll deduction, in accordance with applicable law. The Town may also initiate any other lawful collection methods necessary in its sole discretion. E. Failure to submit properly completed reports related to cardholder activity during the time periods specified within this policy may subject the employee to appropriate action, such as: 1. First Offense – Suspension of cardholder privileges for a minimum of thirty (30) business days. 2. Second Offense – Termination of cardholder privileges and a written reprimand to be maintained in the employee’s personnel file. Page 59 36 VI. PROGRAM GUIDELINES Several unique controls have been developed for the Purchasing Card Program that do not exist in a traditional credit card environment. These controls ensure that the card can only be used for specific purchases and within specific dollar limits. A. General Information 1. The unique purchasing card that an employee receives has his/her name embossed on it and the words “TOWN OF HIGHLAND BEACH”. It shall only be used by that employee or another employee that has been established as an authorized purchaser on the cardholder’s account. 2. The purchasing card shall only be used for Town business and shall not be used to make personal purchases. 3. The standard purchasing card spend limit is $2,500 per billing cycle. 4. All cardholders shall sign a Town of Highland Beach Cardholder Agreement Form at the time of card issuance. B. Conditions 1. Each single purchase may be comprised of multiple items, but the total cannot exceed the single purchase dollar limit on the purchasing card. 2. The least expensive item that meets the Town of Highland Beach basic needs should be sought. 3. Cardholders must follow their department’s administrative control of funds procedures to ensure that sufficient funds are available prior to making a purchase. Items purchased with a purchasing card will be reconciled to the appropriate expense line item. C. The purchasing card issuer will not request any personal information from the cardholders, nor should any personal information be furnished to the purchasing card issuer. D. Use of the purchasing card does not relieve the cardholder from complying with Federal, state, and local laws, ordinances, and regulations. E. The purchasing card is not intended to replace effective procurement planning which enables volume discounts or appropriate travel arrangements. F. Questions regarding a purchasing account or specific purchasing card procedures should be directed to the Program Administrator, or designee. Page 60 37 G. The following list covers purchases for which purchasing card use is prohibited: 1. Cash advances. 2. Personal items. 3. Fuel – Exception for pre-approved travel in a Town or rental vehicle. 4. Phone services. 5. Professional services (Architects, Engineers, Attorneys, Physicians, etc.) 6. Supplies or services related to personal memberships or agreements. 7. Gift cards. 8. Specifically set department restrictions. VII. PROCEDURES FOR PURCHASING CARD RECONCILIATION A. Monthly statements are mailed directly to employees who are assigned a Purchasing card. Upon receipt of the statement, the cardholder should complete the following reconciliation steps before the end of the month: 1. Review the statement for accuracy and report any errors to PNC any of the following ways: a) Mail – PO Box 2859 Kalamazoo, MI 49003-2859 b) Fax – (269) 973-1688 c) E-mail – billinginquiries@pnc.com 2. Enter the details for each transaction then upload the supporting documents in the BS&A Accounts Payable Module as follows: a) Invoice Date - Transaction/Post Date on the Statement b) Due Date - 4th of the month following the statement closing date B. If there is a credit/return, enter the transaction with a minus in the “amount” field. C. Upon completion of entering the transactions from the statement, double-check to ensure that the total transactions entered (Including credits) matches the total activity reflected on the statement. Page 61 38 TOWN OF HIGHLAND BEACH CARDHOLDER AGREEMENT FORM Please review the terms stated below, sign, date and return to the Purchasing Division upon receipt of your Purchasing Card. Please note that this Cardholder Agreement also acts as your signature card and will be kept on file in the Purchasing Division. I, _____________________________________________, hereby acknowledge receipt of a Town of Highland Beach Purchasing Card and have reviewed the Town’s Purchasing Card Policy. Card Number: _____________________________________________________________ (the “Purchasing Card”), is received in good condition, with both the Town’s name and mine appearing on the face of the Purchasing Card. I have verified the information contained thereon and attest to its accuracy. “Proper and Authorized Charges” shall mean charges which conform to and meet all requirements of the Purchasing Card Policy and any other applicable law, ordinance, rule or regulation. I hereby agree to abide by the Ethics in Public Contracting as detailed in the Palm Beach County Code of Ethics Ordinance. I agree to accept responsibility for the protection and proper use of the Purchasing Card in accordance with the above referenced instructions and policies and procedures. I understand that my use of the Purchasing Card is subject to audit by the Town, that my purchases with the Purchasing Card are limited to the dollar purchase limit per month as set forth in the policies and procedures and Purchasing Card charges for purchases shall not be split. Splitting charges will be considered abuse of the Purchasing Card program and may result in disciplinary action and revocation of the Purchasing Card. The Purchasing Card is not to be used to purchase certain commodities and services as outlined in the policies and procedures. I further understand that I am to use the Purchasing Card solely for proper and authorized charges for official business on behalf of the Town. I agree to immediately notify the Program Administrator by telephone or email if the Purchasing Card is lost or stolen. I also agree to immediately notify the Program Administrator if unauthorized charges appear on my Statement of Account. I understand that my failure to immediately notify the Program Administrator of unauthorized charges to my Statement of Account could make me responsible for improper or unauthorized charges. The improper or unauthorized use of the Purchasing Card may result in disciplinary action and or suspension or termination of the Purchasing Card and all associated Cardholder privileges. I understand that the Town may suspend or terminate my privileges to use the Purchasing Card at any time for any reason. If the Town initiates legal proceedings to recover amounts owed by me under this Agreement, I agree to pay court costs, reasonable attorney’s fees and other expenses incurred by the Town in such proceedings, assuming the Town prevails in such legal action. I agree to surrender the Purchasing Card immediately upon retirement, termination of employment, termination of Cardholder privileges, or upon the request of the Town. I understand that I will be held responsible for improper or unauthorized charges in accordance with the Purchasing Card Policy. ________________________________________ ______________________________ Cardholder Signature Date ________________________________________ ______________________________ Department Head Signature Date ________________________________________ ______________________________ Town Manager Signature Date Page 62 TOWN OF HIGHLAND BEACH PROPOSED ORDINANCE AN ORDINANCE OF THE TOWN OF HIGHLAND BEACH, FLORIDA, AMENDING THE CODE OF ORDINANCES, AT CHAPTER 33 “ACQUISITION OF GOODS AND SERVICES,” SECTION 33-2 “METHODS OF ACQUISITION”; AMENDING SECTION 33-3 “TOWN COMMISSION APPROVAL”; AND FOR OTHER PURPOSES; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT, CODIFICATION, SEVERABILITY, AND AN EFFECTIVE DATE. WHEREAS, the Town of Highland Beach, Florida (the “Town”), is a duly constituted municipality having such power and authority conferred upon it by the Florida Constitution and Chapter 166, Florida Statutes; and WHEREAS, the Town Commission wishes to update Chapter 33 “Acquisition of Goods and Services” to be consistent with updates made to the Town’s Purchasing Policy and Procedures; and WHEREAS, it has been determined that this ordinance serves a public purpose and is in the best interest of the public health, safety, and welfare of the Town of Highland Beach. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COMMISSION OF THE TOWN OF HIGHLAND BEACH, FLORIDA, AS FOLLOWS: Section 1. The foregoing facts and recitations contained in the preamble to this Ordinance are hereby adopted and incorporated by reference as if fully set forth herein. Section 2. The Town of Highland Beach Code of Ordinances, is hereby amended at Chapter 33, “Acquisition of Goods and Services,” to read as follows: Chapter 33 – ACQUISITION OF GOODS AND SERVICES * * * Sec. 33-2. – Methods of acquisition. (a) Sealed competitive method. Acquisitions of or contracts for non -real property, goods or services where the expenditure by the town (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to a sealed competitive method, unless the town utilizes one of the methods that Page 63 Proposed Ordinance 2 is exempt from the sealed competitive method or from obtaining quotes, as provided in subsection 33-2(c). (1) Competitive bids. Sealed competitive bids are utilized where price, responsiveness, and responsibility are the sole determining factors. (2) Requests for proposals, requests for qualifications, requests for letters of interest. Requests for proposals, requests for qualifications, and requests for letters of interest are utilized where price, responsiveness, and responsi bility are not the sole determining factors. The town manager may appoint a selection committee to review the submissions received by the town in response to requests for proposals, requests for qualifications, and requests for letters of interest and make a recommendation to the town commission. The selection committee shall terminate upon the award of the contract, or such other time as determined by the town commission. (3) Submissions. It shall be the sole responsibility of the bidder, proposer or responder to have the bid, proposal or response delivered before the specified closing date and time. Bids, proposals or responses received after the closing date and time shall not be considered and shall be returned unopened. The clock in the town clerk's office shall govern. All bids, proposals and responses submitted pursuant to a sealed competitive method shall remain sealed until they are opened publicly on the date and time and location stated in the notice to bidders, proposers or responders, or as may b e amended by addendum. (4) Town's reservation of rights. The town may utilize a sealed competitive method for any acquisition that the town deems appropriate regardless of the estimated cost of the acquisition. Until final award of contract, the town reser ves the right to waive any informality or irregularity and to reject all bids, proposals and responses, with or without cause. (b) Purchasing policy. Acquisitions equal to or less than fifty thousand dollars ($50,000.00) under twenty-five thousand dollars ($25,000.00) shall be governed by the town's purchasing policy. (c) Exemptions from purchasing by the sealed competitive method or by obtaining a written quote. Page 64 Proposed Ordinance 3 (1) Professional services. Except as otherwise provided for in Florida law, contracts for professional services (which include but is not limited to services provided by architects, engineers, surveyors, attorneys, accountants, actuaries, lobbyists and financial advisors) may be made or entered into by the town manager without utilizing a sealed com petitive method or obtaining written quotes. Acquisitions of professional services where the expenditure by the town (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to approval by the town commission. (2) Specialty goods and services. Acquisitions of or contracts for specialty goods and services (including but not limited to perform ing artists, artwork, special events, entertainment, and food and beverage) may be made or entered into by the town manager without utilizing a sealed competitive method or obtaining written quotes. Acquisitions of specialty goods and services, where the e xpenditure by the town is estimated to be twenty-five thousand dollars ($25,000) or greater than fifty thousand dollars ($50,000.00), shall be subject to approval by the town commission. (3) Emergency acquisitions. The town manager may acquire or contract for non- real property, goods, or services required in contemplation of, preparation for, or during an emergency without utilizing a sealed competitive method or obtaining written quotes regardless of the amount. Emergency acquisitions of non -real property, goods or services where the expenditure by the town is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to ratification by the town commission as soon as practicable. (4) Sole source and town standard. a. Sole source. The town may acquire or contract for non -real property, goods or services that are available to the town from only one source without utilizing the sealed competitive method or obtaining written quotes. Sole source acquisitions where the expenditure by the town Page 65 Proposed Ordinance 4 (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to approval by the town commission. b. Town standard. Where the town has determined that a particular style, brand, make, or model is the only type that meets the town's requirements for performance, consistency, compatibility or other sa lient characteristics, and such determination has resulted in there being only one source available to the town, the town may acquire or contract for such goods without utilizing a sealed competitive method or obtaining written quotes. Town standard acquis itions where the expenditure by the town (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to approval by the town commission. (5) Utilization of other governmental entities' contracts. a. The town may acquire or contract for non -real property, goods or services without utilizing a sealed competitive method or obtaining written quotes where the desired goods or services are the subject of a contract with the state, its political subdivisions or other local governmental entities in the state, with associations in Florida affiliated with state and/or local governmental entities or depart ments (such as the Florida Sheriffs' Association and the Florida Fire Chiefs' Association) or with the United States government or national cooperatives, provided that the contract is based strictly on competitive bidding and not on any preference, and pro vided that the form of the contract is acceptable to the town attorney. Acquisitions utilizing other governmental entities' contracts where the expenditure by the town (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than Page 66 Proposed Ordinance 5 fifty thousand dollars ($50,000.00) shall be subject to approval by the town commission. b. Utilization of other government entities' contracts shall only be permitted during the term of the other governmental entity's contract or for one year from the date the other governmental entity awards the bid, whichever is longer. c. If the town desires to utilize another governmental entity's contract, the town shall require the vendor to certify that the price or rate represents the lowest price or rate for the non -real property, goods or services of any contract between the vendor and any other governmental entity within the state. (6) Cooperative acquisitions. The town may acquire or contract for non -real property, goods or services without utilizing a sealed competitive method or obtaining written quotes where the town participates in joint procurement of non - real property, goods or services with other public entities within the state, including, but not limited to acquisitions made pursuant to interlocal agreements entered into with other governmental entities in accordance with F.S. Ch. 163. Cooperative acquisitions where the expenditure by the town (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to approval by the town commission. (7) Utilities. Water, sewer, gas, electrical, and other utility services may be acquired without utilizing a sealed competitive method or obtaining written quotes and without town commission approval. (8) Resale. Food, beverages and merchandise purchased for resale, may be acquired without utilizing a sealed competitive method or obtaining written quotes and without town commission approval. (9) Employee benefits and health services. Employee benefits and health related services may be procured/renewed directly through a negotia ting process Page 67 Proposed Ordinance 6 conducted by town staff and/or an expert in the field, or to maintain continuity of employee-health records, and is not subject to competitive procurement methods. (10) Property, casualty, workers compensation, liability, automobile insurance. Insurance may be procured/renewed directly through a negotiating process conducted by town staff and/or an expert in the field, or to maintain continuity of insurance records, and is not subject to competitive procurement methods. (11) Best interest acquisitions. The town may acquire or contract for non -real property, goods or services without utilizing a sealed competitive method or obtaining written quotes where the town commission declares by at least a four - fifths (⅘) affirmative vote that the sea led competitive method or obtaining written quotes is not in the best interest of the town. The town commission shall make specific factual findings that support its determination, and such contracts shall be placed on the regular town commission agenda. T his provision may not be used when the purchasing or procurement method is prescribed by state law, such as F.S. § 287.055 or 255.20, as amended. Sec. 33-3. – Town commission approval. (a) Acquisitions of twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00). Except as otherwise set forth in the Code, Aacquisitions of or contracts for non -real property, goods or services where the expenditure by the town (including expenditures during renewal periods, but not expenditures relating to change orders) is estimated to be twenty-five thousand dollars ($25,000.00) or greater than fifty thousand dollars ($50,000.00) shall be subject to prior approval by the town commission , except for emergency acquisitions, which are subject to subsequent ratification by the town commission pursuant to subsection 33-2(c)(3). (b) Multiple acquisitions from a vendor exceeding twenty-fivefifty thousand dollars ($2550,000.00) in any fiscal year. Acquisitions of or contracts for non -real property, goods or services from the same vendor exceeding the aggregate sum of twenty-five fifty thousand dollars ($2550,000.00), per project, shall not be permitted from the same vendor Page 68 Proposed Ordinance 7 during the course of any fiscal year, unless the acquisition is first approved by the town commission. This subsection shall not apply to utility acquisitions. * * * Section 3. Severability. The provisions of this Ordinance are declared to be severable and if any section, sentence, clause or phrase of this Ordinance shall for any reason be held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining sections, sentences, clauses, and phrases of this Ordinance but they shall remain in effect, it being the legislative intent that this Ordinance shall stand notwithstanding the invalidity of any part. Section 4. Repeal of Laws in Conflict. All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Section 5. Codification. Section 2 of the Ordinance may be made a part of the Town Code of Ordinances and may be re-numbered or re-lettered to accomplish such, and the word “ordinance” may be changed to “section,” “division,” or any other appropriate word. Section 6. Effective Date. This Ordinance shall be effective immediately upon adoption at second reading. The foregoing Ordinance was moved by __________________________________, seconded by ________________________________ and upon being put to the vote, the vote was as follows: VOTES: YES NO Mayor Natasha Moore Vice Mayor David Stern Commissioner Evalyn David Commissioner Donald Peters Commissioner Judith M. Goldberg PASSED on first reading at the Regular Commission meeting held on this _____ day of _________________, 2023. The foregoing Ordinance was moved by _________________________________, seconded by ________________________________ and upon being put to the vote, the vote was as follows: VOTES: YES NO Mayor Natasha Moore Vice Mayor David Stern Commissioner Evalyn David Commissioner Donald Peters Page 69 Proposed Ordinance 8 Commissioner Judith M. Goldberg PASSED AND ADOPTED on second and final reading at the Regular Commission meeting held on this _____ day of _________________, 2023. ATTEST: Natasha Moore, Mayor REVIEWED FOR LEGAL SUFFICIENCY: Lanelda Gaskins, MMC Town Clerk Glen Torcivia, Town Attorney Town of Highland Beach Page 70 File Attachments for Item: D. Proposed Operating Budget Presentation for Fiscal Year 2024 - Finance Director DiLena Page 71 Overview of Preliminary FY 2024 Operating Budget June 20, 2023 “Budgeting to Protect Our 3 Miles of Paradise"1 Page 72 FY 2024 Preliminary Budget Overview Maintain Total Millage Rate at 3.5875 Recognized a 13.2% increase in Taxable Value Reduction in Debt Service Millage as part of Water Rate Transition NO need to balance budget with pledged reserve funds (Fund Balance) Reduced from $1.5M in FY2023 Increase in Fire-Rescue budget to $12M ($4+M related to construction) 3.15% increase from City of Delray Beach Interlocal Agreement (Prorated for 7 months) 24 FTE positions (Prorated for 7 months) Complete Fire Rescue Station Construction by May 1, 2024 Establish Fire Truck Replacement Fund Funding of salaries and benefits Assumed healthcare and related insurance increase of 25% (Preliminary –On high side) FOP Union Collective Bargaining Agreement TBD (per five-year forecast) PBA Union Collective Bargaining Agreement (Effective 6/1/23) Non-Union employees (per five-year forecast) 2“Budgeting to Protect Our 3 Miles of Paradise" Page 73 FY 2024 Preliminary Budget Overview (Cont.) General Insurance Increased at 35% Building Fund additional Transfer to General Fund $150K for Fire Marshal/Community Risk Reduction Water and Sewer Rates increase by 8% per 5-year forecast/rate study 3“Budgeting to Protect … 3 Miles of Paradise" Page 74 FY 2023 Accomplishments 4 Fire-Rescue Department Completed Design Contracted Construction Manager at Risk (KL) Acquired Apparatus/Response Equipment Commenced Construction Hired Assistant Fire Chief EMS & CRR Water/Sewer Rate Study Update Sanitary Sewer Rehabilitation Project Rehabilitate Lift Station #2 & #3 (FY 2024) Rehabilitate Well No. 6 Replace Membrane Stage Turbo Pumps/VFDs Storm Sewer Repair Bel Lido PBA Collective Bargaining Agreement FY 2023-2026 FOP Collective Bargaining Agreement FY 2023-2026 –Still in Process Page 75 FY 2023 Accomplishments (Cont.) 5 Police Department Marine Unit Police Department Accreditation Building Recertification Ordinance & Program Five-Year Financial Forecast New Town Website FDOT RRR Project –Public Meetings Fund Balance Policy Update Page 76 FY 2024 Strategic Projects/Initiatives 6 Fire-Rescue Department Complete Construction of Fire Station Continued procurement of Station Apparatus and Equipment Recruit Fire Personnel Formalize Operational Protocols Marine Accessory Structures Ordinance Town Entry Signs --Construction Bel Lido Bridge Repairs Rehabilitate Well No. 8 FDOT RRR Project Construction Beach Erosion/Dune Management Study Zoning District Evaluation Improve Finance/Accounting Department Accuracy, Speed & Reporting Human Resource/Personnel Policy and Procedures Page 77 FY 2024 Preliminary Millage Rate Proposed Total Operating Millage Rate Operating Millage decrease from 3.2294 to 3.2190 Fire Debt in GF at 0.1992 mills Reduction in Debt Service Millage (Water) From 0.3581 to 0.1693 –Reduction of 0.1888 Combined Proposed Millage 3.2190 Mills 0.1693 Mills 7 3.5875 Mills 0.1992 Mills Page 78 Town’s Taxable Assessed Value •10.2 % Change in Taxable Value (1 Year) •7.5% Average Annual Change in Taxable Value (5 Years) 8 Page 79 Town’s Preliminary Tax Rate Total Millage Rate Change of 0.0%as compared to prior year Included in the GF is Debt Service related to Fire Rescue Loan Operating Millage decrease 9 Page 80 Preliminary FY2024 General Fund Revenues 10 •FY2023 General Fund Revenues were approximately $15.6M •Budget Amendments for Fire Rescue related activities increased the budget to an estimated $20.7M •FY2024 General Fund Revenues are estimated to be $21.1M •Of the $21.1M, $4+M related to construction Page 81 Preliminary FY2024 General Fund Revenues (Cont.) 11 A B C C-A (C-A) / A Budget Est. Actuals Preliminary Budget to Budget to REVENUE SOURCE 2023 2023 2024 Budget $ Chng Budget % Chng PROPERTY TAXES 10,774,296$ 10,774,296$ 12,197,349$ 1,423,053$ 13.2% INTER-GOVERNMENTAL 561,449 555,302 630,500 69,051$ 12.3% FRANCHISE FEES 756,000 602,040 596,455 (159,545)$ -21.1% SALES AND USE TAX 240,000 231,653 260,000 20,000$ 8.3% CHARGES FOR SERVICES 662,000 618,687 1,110,000 448,000$ 67.7% GRANTS 19,230 19,230 19,230 -$ 0.0% FINES AND FORFEITURES 5,500 49,113 14,500 9,000$ 163.6% INVESTMENT EARNINGS 80,500 345,576 133,000 52,500$ 65.2% RENTS AND LEASES 75,000 111,895 80,000 5,000$ 6.7% OTHER FINANCING SOURCES 3,000 3,000 4,990,000 4,987,000$ Very Lrg % Δ INTRA-GOVERNMENTAL 850,000 850,000 1,000,000 150,000$ 17.6% MISCELLANEOUS REVENUES 5,500 46,310 5,000 (500)$ -9.1% APPROP FROM RESERVES 1,562,524 6,500,000 - (1,562,524)$ -100.0% Total 15,594,999$ 20,707,101$ 21,036,034$ 5,441,035$ 34.9% •Overall General Fund Revenues increased by approximately 35%. (FY2023 Original Budget vs FY2024 Preliminary Budget) •Other Financing Sources accounts for 92% of the increase (Synovus Bank) Fire Rescue Construction •Property Tax increase accounts for 26% of the increase. •Charges for Services accounts for 8% of the increase. This item is based on the increase in Solid Waste Fees •Reduction Appropriations from Reserves •Note the Switch from using Reserve Funds to Other Financing Sources as planned Page 82 Preliminary FY2024 General Fund Expenditures 12 A B C C-A (C-A) / A Budget Est. Actuals Preliminary % of Budget to Budget to EXPENDITURES BY CATEGORY 2023 2023 2024 Total Budget $ Chng Budget % Chng OPERATING EXPENSES 7,738,623$ 7,822,937$ 6,446,302$ 31%(1,292,321)$ -16.7% PERSONAL SERVICES 5,598,357 5,277,428 8,595,245 41%2,996,888$ 53.5% CAPITAL OUTLAY 1,257,500 6,213,858 4,809,772 23%3,552,272$ 282.5% DEBT SERVICE - 14 677,962 3%677,962$ 100.0% TRANSFERS 1,000,519 1,000,517 506,753 2%(493,766)$ -49.4% Total 15,594,999$ 20,314,755$ 21,036,034$ 100%5,441,035$ 34.9% •Reduction in Operating Expenses are primarily related the reduction in Delray Fire Rescue Contract which expires on May 1st. •Increase in Personal Cost related to: •Adding Fire Rescue Staff (Beginning in March 2024) •Cost of living wage adjustments assumed at 5% •Health Insurance and Retirement Contributions increases •Increase in Collective Bargaining Agreement Costs. •Increase in Capital Outlay related to Fire Recue Building Construction. •Increase in Debt Service related to Fire Rescue Construction Loan. •Reduction in Transfer Out to Water Fund related to reduction in Debt Service Page 83 Preliminary FY2024 General Fund Expenditures (Cont.) 13 A B C C-A (C-A) / A Budget Est. Actuals Preliminary % of Budget to Budget to EXPENDITURES BY DEPT 2023 2023 2024 Total Budget $ Chng Budget % Chng TOWN COMMISSION 213,646$ 241,047$ 239,012$ 1%25,366$ 11.9% TOWN MANAGER 563,537 509,671 632,175 3%68,638$ 12.2% TOWN CLERK 431,582 394,613 374,100 2%(57,482)$ -13.3% FINANCE 624,754 581,445 613,200 3%(11,554)$ -1.8% LEGAL 200,000 94,176 200,000 1%-$ 0.0% PUBLIC WORKS 383,438 328,987 522,990 2%139,552$ 36.4% POST OFFICE 156,972 126,067 156,000 1%(972)$ -0.6% SHARED SERVICES 653,459 691,599 770,560 4%117,101$ 17.9% POLICE 3,016,529 3,016,529 3,523,900 17%507,371$ 16.8% FIRE RESCUE 7,398,370 7,854,517 7,994,362 38%595,992$ 8.1% BUILDING (CONST.)- 4,574,858 4,018,712 19%4,018,712$ 100.0% SOLID WASTE 492,235 468,408 1,012,000 5%519,765$ 105.6% LIBRARY 459,958 432,321 472,270 2%12,312$ 2.7% INTERFUND TRANSFERS 1,000,519 1,000,517 506,753 2%(493,766)$ -49.4% Total 15,594,999$ 20,314,755$ 21,036,034$ 100%5,441,035$ 34.9% •Public Safety Department accounts for 55% of the General Fund Preliminary Budget. •Increase in Collective Bargaining Agreement •Fire Rescue includes 24 FTE’s (Prorated to start in March 2024) •Construction Related to Fire Rescue accounts for 19% of the General Fund Preliminary Budget. •Solid Waste increase in hauling contract •Reduction in Transfers Out to Water Fund due to reduced debt service Page 84 Preliminary FY2024 General Fund Balance 14 Fund Balance Estimate Beginning Balance 12,087,578$ Less: Fire Rescue (6,215,000) Surplus/(Deficit)392,347 Ending Balance 6,264,925$ Fund Balance Policy Budget Stabilization 2,461,476$ 39% Disaster Recovery 2,461,476 39% Fire Rescue 100,000 2% Unassigned 1,241,972 20% Total 6,264,925$ 100% •Fund Balance continues to remain healthily. •Our Estimate at FYE2023 is a General Fund Surplus. •Preliminary FY2024 General Fund Balance plan is to reserve annually for replacement vehicles within the Fire Rescue Department to ensure $ are available when needed in the future. Page 85 Preliminary FY2024 General Fund Budget Vs. 5-Year Plan 15 The Preliminary General Fund Budget of $17,017,322 is slightly higher compared to our five-year financial plan of $16,930,201. The renewal increase of the Solid Waste contract could not have been foreseen when developing our five-year forecast Preliminary 5 Yr Plan Preliminary Preliminary EXPENDITURES BY DEPT 2024 2024 To Plan $To Plan % TOWN COMMISSION 239,012$ 212,187$ 26,825$ 12.6% TOWN MANAGER 632,175 633,601 (1,426) -0.2% TOWN CLERK 374,100 461,944 (87,844) -19.0% FINANCE 613,200 664,839 (51,639) -7.8% LEGAL 200,000 224,000 (24,000) -10.7% PUBLIC WORKS 522,990 456,297 66,693 14.6% POST OFFICE 156,000 165,380 (9,380) -5.7% SHARED SERVICES 770,560 687,137 83,423 12.1% POLICE 3,523,900 3,354,792 169,108 5.0% FIRE RESCUE 7,994,362 8,487,381 (493,019) -5.8% BUILDING (CONST.)- - SOLID WASTE 1,012,000 550,953 461,047 83.7% LIBRARY 472,270 523,562 (51,292) -9.8% INTERFUND TRANSFERS 506,753 508,128 (1,375) -0.3% Total 17,017,322$ 16,930,201$ 87,121$ 0.51% Page 86 Preliminary FY2024 Discretionary Sales Surtax Fund •Preliminary projections indicate an increase in Discretionary Sales Tax revenue from the State of Florida. •Shifting capital projects from FY2023 into FY2024. •Fund Balance within this fund continues to remain healthy. 16 A B C C-A (C-A) / A Budget Est. Actuals Preliminary Budget to Budget to REVENUE SOURCE 2023 2023 2024 Budget $ Chng Budget % Chng SALES AND USE TAX 287,915$ 339,926$ 412,000$ 124,085$ 43.1% INVESTMENT EARNINGS - 15,675 14,000 14,000$ 100.0% APPROP FROM RESERVES 142,085 - 160,000 17,915$ 12.6% Total 430,000$ 355,601$ 586,000$ 156,000$ 36.3% A B C C-A (C-A) / A Budget Est. Actuals Preliminary % of Budget to Budget to EXPENDITURES BY CATEGORY 2023 2023 2024 Total Budget $ Chng Budget % Chng ENGINEERING REPORT -$ -$ 56,000$ 10%56,000$ 100.0% CAPITAL OUTLAY 430,000 200,000 530,000 90%100,000$ 23.3% Total 430,000$ 200,000$ 586,000$ 100%156,000$ 36.3% Fund Balance Estimate Beginning Balance 395,450$ Surplus/(Deficit)155,601 Ending Balance 551,051$ Page 87 Preliminary FY 2024 Capital Projects 17 Preliminary FY2024 Discretionary Sales Surtax Fund (Cont.) Project Name Est. Cost Status Funding Source FY2023 FY2024 North & south Entry Sign 150,000$ Push forward Infrastructure Sales Tax 150,000$ 150,000$ Road/Bridge Repairs 100,000 Push forward Infrastructure Sales Tax 100,000 150,000 Upgrade Library Conf. Room 10,000 Cancelled 10,000 - Upgrade Town Hall Security 15,000 Complete 15,000 - IT/Computers 25,000 Annual Infrastructure Sales Tax 25,000 60,000 Police Vehicles 54,000 Complete 54,000 - Axon Police Cameras 46,000 Annual Infrastructure Sales Tax 46,000 46,000 New AC's 30,000 Cancelled 30,000 - Flock 35,000 2024 Infrastructure Sales Tax - 35,000 Vehicle 60,000 2024 Infrastructure Sales Tax - 60,000 Garage door replacement 75,000 2024 Infrastructure Sales Tax - 75,000 Library Sewer Rehab 150,000 2024 Infrastructure Sales Tax - 50,000 Fence Replacement 35,000 2024 Infrastructure Sales Tax - 35,000 PD Cabinets & Carpet Replacement 75,000 2024 Infrastructure Sales Tax 75,000 430,000$ 736,000$ Push forward/Cancelled (230,000) Est. Actuals 200,000$ Page 88 Preliminary FY2024 Building Department (Revenues) •Charges for Services represent over 94% of total revenue associated with this fund. FY2023 Preliminary Budget is based on a conservative projection of FY2023 actuals. •The Interlocal Agreement with Gulfstream continues to benefit this fund. •Transfer from General Fund represents a fixed amount of allocated labor for planning and zoning activity . •Due to the overall health of this fund, no pledge from Reserve is anticipated. 18 A B C C-A (C-A) / A Budget Est. Actuals Preliminary Budget to Budget to REVENUE SOURCE 2023 2023 2024 Budget $ Chng Budget % Chng CHARGES FOR SERVICES 1,673,834$ 2,054,914$ 1,801,370$ 127,536$ 7.6% FINES AND FORFEITURES 60,000 31,766 22,200 (37,800) -63.0% INVESTMENT EARNINGS 18,000 72,955 40,000 22,000 122.2% INTRA-GOVERNMENTAL 55,000 55,000 55,000 - 0.0% APPROP FROM RESERVES 16,600 - - (16,600) -100.0% Total 1,823,434$ 2,214,635$ 1,918,570$ 95,136$ 5.2% Page 89 Preliminary FY2024 Building Department (Expenditures) 19 A B C C-A (C-A) / A Budget Est. Actuals Preliminary % of Budget to Budget to EXPENDITURES BY CATEGORY 2023 2023 2024 Total Budget $ Chng Budget % Chng OPERATING EXPENSES 632,148$ 592,426$ 679,370$ 35%47,222$ 7.5% PERSONAL SERVICES 762,146 652,411 716,600 37%(45,546)$ -6.0% CAPITAL OUTLAY 79,140 53,140 22,600 1%(56,540)$ -71.4% TRANSFERS 350,000 350,000 500,000 26%150,000$ 42.9% Total 1,823,434$ 1,647,977$ 1,918,570$ 100%95,136$ 5.2%•Overall, the budget increased by 5.2% as compared to prior year budget. •Operating Expenses increased based on our FY2023 estimates and general inflation increases. •Personal Cost include a general Cost of living adjustment of 5% plus increases in cost of benefits •Transfers increased by $150K to include the cost to the General Fund relating to Fire Marshal/Community Risk Reduction Page 90 Preliminary FY2024 Building Department Vs. 5-Year Plan 20 Preliminary 5 Yr Plan Preliminary Preliminary EXPENDITURES BY DEPT 2024 2024 To Plan $To Plan % OPERATING EXPENSES 679,370$ 705,312$ (25,942)$ -3.7% PERSONAL SERVICES 716,600 788,271 (71,671) -9.1% CAPITAL OUTLAY 22,600 57,776 (35,176) -60.9% TRANSFERS 500,000 350,000 150,000 42.9% Total 1,918,570$ 1,901,359$ 17,211$ 0.91% The Preliminary Building Department Budget of $1,918,570 is slightly higher compared to our five-year financial plan of $1,901,359. The proposed additional transfer related to the Fire Marshal/Community Risk Reduction cost was not taken into place when developing our five-year forecast Page 91 Preliminary FY2024 Water Fund (Revenues) •Overall decrease in revenues 2.5% (primarily due to reduction GF Transfers into the fund). •The preliminary Budget assumed an 8% rate increase based on 5-year forecast •Transfer from GF is reduced which coincides with consultants’ forecast and reduced DS. •Reduced need for appropriations from reserves. 21 A B C C-A (C-A) / A Budget Est. Actuals Preliminary Budget to Budget to REVENUE SOURCE 2023 2023 2024 Budget $ Chng Budget % Chng CHARGES FOR SERVICES 3,065,975$ 3,029,265$ 3,517,720$ 451,745$ 14.7% INVESTMENT EARNINGS 29,000 135,837 140,000 111,000 382.8% OTHER FINANCING SOURCES - 2,087 - - 0.0% INTRA-GOVERNMENTAL 1,165,519 1,165,519 671,753 (493,766) -42.4% APPROP FROM RESERVES 582,646 - 393,633 (189,013) -32.4% Total 4,843,140$ 4,332,707$ 4,723,106$ (120,034)$ -2.5% Page 92 Preliminary FY2024 Water Fund (Revenue Data) •Compared to the prior year (FY2022), Water Usage is up by 23% through the first 4 cycles of FY2023 22 FY Cycle Months Gallons CY vs PY Mo Δ Total To C4 % Δ 2022 1 Oct/Nov 40,653,000 2022 2 Dec/Jan 40,872,000 2022 3 Feb/Mar 43,440,000 2022 4 Apr/May 48,999,000 173,964,000 2022 5 Jun/Jul 37,980,000 2022 6 Aug/Sept 51,471,000 2023 1 Oct/Nov 51,444,000 10,791,000 2023 2 Dec/Jan 54,587,000 13,715,000 2023 3 Feb/Mar 53,985,000 10,545,000 2023 4 Apr/May 53,953,000 4,954,000 213,969,000 23% FY Cycle Months Gallons CY vs PY Mo Δ Total To C4 % Δ 2022 1 Oct/Nov 10,320,000 2022 2 Dec/Jan 8,984,000 2022 3 Feb/Mar 7,714,000 2022 4 Apr/May 10,516,000 37,534,000 2022 5 Jun/Jul 11,305,000 2022 6 Aug/Sept 13,431,000 2023 1 Oct/Nov 10,263,000 -57,000 2023 2 Dec/Jan 8,799,000 -185,000 2023 3 Feb/Mar 9,609,000 1,895,000 2023 4 Apr/May 10,621,000 105,000 39,292,000 5% •Compared to the prior year (FY2022), Irrigation Usage is up by 5% through the first 4 cycles of FY2023 Page 93 Preliminary FY2024 Water Fund (Expenditures) •5% increase in Salaries & Related (Department is fully staffed). •Preliminary Operations budget based on FY2023 projected expenditures. •Slight Reduction in Capital Project Expenditures. •Reduction in DS as forecasted •Overall decrease in expenditures of 2.5% primarily due lower debt service cost and slightly reduced Capital Projects. 23 A B C C-A (C-A) / A Budget Est. Actuals Preliminary % of Budget to Budget to EXPENDITURES BY CATEGORY 2023 2023 2024 Total Budget $ Chng Budget % Chng OPERATING EXPENSES 1,060,944$ 1,005,589$ 1,365,495$ 29%304,551$ 28.7% PERSONAL SERVICES 1,135,758 1,057,076 1,206,626 26%70,868 6.2% CAPITAL OUTLAY 547,246 247,500 420,000 9%(127,246) -23.3% DEBT SERVICE 1,549,192 1,549,192 1,180,985 25%(368,207) -23.8% TRANSFERS 550,000 550,000 550,000 12%- 0.0% Total 4,843,140$ 4,409,357$ 4,723,106$ 100%(120,034)$ -2.5% Page 94 Preliminary FY2024 Water Fund (Expenditure Data) Loan No. Pmts Months Annual Debt Service Maturity Date 500200 Mar & Sept 198,311$ Sep-30 502901 Mar & Sept 738,424 Mar-24 500210 Jun & Dec 263,473 Dec-37 500201 Mar & Sept 52,136 Sep-30 BOA All 296,880 Feb-29 1,549,224$ •Debt Service reduced in FY2024 by $369K and FY2025 by another $369K. 24 Page 95 Preliminary FY2024 Water Fund Balance 25 Fund Balance Estimate Beginning Balance 3,386,184$ Less: Transfer to GF (574,482)$ Surplus/(Deficit)(76,650) Ending Balance 2,735,052$ Restrictions Debt Service 1,180,985 43% Unassigned 1,554,067 57% Total 2,735,052$ 100% •Healthy Fund Balance •Transfers portion of ARPA Fund to GF for Fire Rescue •120 days Unrestricted Fund Balance Page 96 Preliminary FY2024 Water Fund Budget Vs. 5-Year Plan 26 The Preliminary Water Fund Budget of $4,723,106 is slightly higher compared to our five-year financial plan of $4,549,385. Inflationary pressures within this fund due to the cost of Chemicals and other operating expenditures was not taken into place when developing our five-year forecast. Staff forecast that increases in water/irrigation revenue will close the gap. Preliminary 5 Yr Plan Preliminary Preliminary EXPENDITURES BY DEPT 2024 2024 To Plan $To Plan % OPERATING EXPENSES 1,365,495$ 1,241,613$ 123,882$ 10.0% PERSONAL SERVICES 1,206,626 1,170,292 36,334 3.1% CAPITAL OUTLAY 420,000 407,500 12,500 3.1% DEBT SERVICE 1,180,985 1,179,980 1,005 0.1% TRANSFERS 550,000 550,000 - Total 4,723,106$ 4,549,385$ 173,721$ 3.82% Page 97 Preliminary FY2024 Sewer Fund (Revenues) 27 A B C C-A (C-A) / A Budget Est. Actuals Preliminary Budget to Budget to REVENUE SOURCE 2023 2023 2024 Budget $ Chng Budget % Chng CHARGES FOR SERVICES 1,524,334$ 1,662,430$ 1,795,425$ 271,091$ 17.8% GRANTS - - - - 0.0% INVESTMENT EARNINGS 21,000 101,834 120,000 99,000 0.0% APPROP FROM RESERVES 237,358 - 317,575 80,217 33.8% Total 1,782,692$ 1,764,264$ 2,233,000$ 450,308$ 25.3% •Overall increase in revenues 25.3% (primarily due to increased appropriations from reserves to cover increase in CapX). •The preliminary Budget assumed an 8% rate increase based on 5-year forecast Page 98 Preliminary FY2024 Sewer Fund (Revenue Data) 28 FY Cycle Months Gallons CY vs PY Mo Δ Total To C4 % Δ 2022 1 Oct/Nov 37,839,000 2022 2 Dec/Jan 38,244,000 2022 3 Feb/Mar 41,006,000 2022 4 Apr/May 46,134,000 163,223,000 2022 5 Jun/Jul 38,852,000 2022 6 Aug/Sept 49,291,000 2023 1 Oct/Nov 47,491,000 9,652,000 2023 2 Dec/Jan 50,653,000 12,409,000 2023 3 Feb/Mar 53,764,000 12,758,000 2023 4 Apr/May 50,855,000 4,721,000 202,763,000 24% •Compared to the prior year (FY2022), Sewer Treatment is up by 24% through the first 4 cycles of FY2023. Nearly identical to water, which is a good thing. Page 99 Preliminary FY2024 Sewer Fund (Expenditures) 29 A B C C-A (C-A) / A Budget Est. Actuals Preliminary % of Budget to Budget to EXPENDITURES BY CATEGORY 2023 2023 2024 Total Budget $ Chng Budget % Chng OPERATING EXPENSES 1,337,692$ 1,153,894$ 1,563,000$ 70%225,308$ 16.8% CAPITAL OUTLAY 225,000 225,000 450,000 20%225,000 100.0% TRANSFERS 220,000 220,000 220,000 10%- 0.0% Total 1,782,692$ 1,598,894$ 2,233,000$ 100%450,308$ 25.3% •Increase in Operating Expense based on contract with Delray for Sewer Treatment and general inflationary price increases. •Increase in CapX expenditures. Page 100 Preliminary FY2024 Sewer Fund Balance 30 Fund Balance Estimate Beginning Balance 2,654,554$ Less: Transfer to GF (925,518) Surplus/(Deficit)165,370 Ending Balance 1,894,406$ •Healthy Fund Balance •Transfers portion of ARPA Fund to GF for Fire Rescue •309 days Unrestricted Fund Balance Page 101 Preliminary FY2024 Sewer Fund Budget Vs. 5-Year Plan 31 The Preliminary Sewer Fund Budget of $2,233,000 is currently in line with our five-year financial plan. Preliminary 5 Yr Plan Preliminary Preliminary EXPENDITURES BY DEPT 2024 2024 To Plan $To Plan % OPERATING EXPENSES 1,563,000$ 1,563,000 - 0.0% CAPITAL OUTLAY 450,000 450,000 - 0.0% TRANSFERS 220,000 220,000 - Total 2,233,000$ 2,233,000$ -$ 0.00% Page 102 Preliminary FY2024 Summary 32 Estimated Revenues General Fund Disc Sales Tax Building Fund Water Fund Sewer Fund Total Taxes: Property Taxes 12,197,349$ -$ -$ -$ -$ 12,197,349$ Franchise Fees 596,455 596,455 Sales & Use Tax 260,000 412,000 672,000 Inter-Governmental 630,500 630,500 Miscellaneous Revenues Misc Revenue 5,000 5,000 Charges for Service 1,110,000 1,801,370 3,517,720 1,795,425 8,224,515 Investment Earnings 133,000 14,000 40,000 140,000 120,000 447,000 Fines & Forfeitures 14,500 22,200 36,700 Rents & Leases 80,000 80,000 Total Revenues 15,026,804$ 426,000$ 1,863,570$ 3,657,720$ 1,915,425$ 22,889,519$ Other Resources: Grants 19,230 - 19,230 Intra-Governmental 1,000,000 55,000 671,753 1,726,753 Other Sources 4,990,000 - 4,990,000 Reserves - 160,000 - 393,633 317,575 871,208 Total Sources 21,036,034$ 586,000$ 1,918,570$ 4,723,106$ 2,233,000$ 30,496,710$ - - - - - Expenditures, Uses General Government 2,827,347$ 2,827,347$ Public Safety 10,080,940 1,395,970 11,476,910 Culture / Recreation 472,270 472,270 Public Works 492,990 492,990 Sanitation / Solid Waste 1,012,000 1,012,000 Post Office 156,000 156,000 Enterprise Funds (Utilities)2,572,121 1,563,000 4,135,121 Capital Outlay 4,809,772 586,000 22,600 420,000 450,000 6,288,372 Total Expenditures 19,851,319$ 586,000$ 1,418,570$ 2,992,121$ 2,013,000$ 26,861,010$ Other Uses Debt Service 677,962 1,180,985 1,858,947 Transfers 506,753 500,000 550,000 220,000 1,776,753 Total Expenditures & Other Uses 21,036,034$ 586,000$ 1,918,570$ 4,723,106$ 2,233,000$ 30,496,710$ Net -$ -$ -$ -$ -$ -$ TOWN OF HIGHLAND BEACH FLORIDA ALL FUNDS SUMMARY REPORT FOR PRELIMINARY FY2024 The Total Preliminary FY2024 Budget for all funds is $30,496,710 Page 103 FY 2024 Budget Calendar Events 33 Today •Preliminary Budget Presentation FAB Meeting •Continued budget discussions July •1st reading of levy •Setting tentative maximum millage rate August •Special Budget Meetings (if needed) September •Public Hearing to tentatively adopt proposed millage and proposed budget •Budget Ad to newspaper •September 21st •Town Commission adopts final budget, final millage Page 104 Questions FY 2024 Budget 34 Page 105 File Attachments for Item: E. Presentation of Comprehensive Annual Financial Report for Fiscal Year Ending September 30, 2022 Page 106 FY2022 Annual Comprehensive Financial Report (Audit) 1 Page 107 Unmodified “Clean” Audit Opinion. Financial Statements present fairly, in all material respects…. In accordance with accounting principles generally accepted in the United States of America. Net Position encompasses the overall financial position of a government entity as a whole and provides a long-term perspective on the government's financial health and sustainability. Assets exceeded liabilities by $24.9M, an increase of $1.3M or 5.8% as compared to the prior year. Page 108 Governmental Business Total Revenue 14,779$ 4,429$ 19,208$ Expenses (13,061) (4,789) (17,850) Net (deficiency) bf transfers 1,718 (360) 1,358 Transfers (1,039) 1,039 - Increase in net position 678.7$ 679.2$ 1,357.9$ For Fiscal Year Ending September 30, 2022 ($000) The breakdown of net position between Governmental and Business type of funds (Water/Sewer) was nearly identical after Transfers from the General Fund. Total Governmental Business Total 2021 Land 324$ -$ 324$ 324$ Construction in progress 210 - 210 - Amortized leases 36 - 36 - Buildings and improvements 5,278 9,478 14,755 14,750 Improvements other than buildings 3,246 13,902 17,148 16,755 Equipment, furniture, and books 2,855 8,390 11,245 10,873 Total assets 11,949 31,770 43,718 42,702 Less accumulated depr. & amort.($6,999)($16,928)($23,928)($22,891) Total 4,949$ 14,841$ 19,791$ 19,811$ As of September 30, 2022 ($000) Added over $1M in Town Assets through improvements and upgrades during the year. Page 109 Reduced long-term liabilities by $(1.4M)+ thought-out the fiscal year. Total Governmental Business Total 2021 Promissory notes -$ 1,709$ 1,709$ 1,943$ Revolving fund loans - 6,584 6,584 7,691 Leases payable 23 - 23 - Other postemployment benefits 82 20 102 193 Compensated absences 324 107 431 502 Total 429$ 8,420$ 8,849$ 10,329$ As of September 30, 2022 ($000) Fund balance represents the residual amount left in a particular fund after deducting liabilities from assets. It serves as an indicator of the fund's financial health and its ability to meet its obligations. General Building Other Water Sewer Total FB/NP, beginning of year 10,588$ 1,571$ 622$ 8,649$ 2,321$ 23,751$ Net Change 9 412 21 597 83 1,122 FB/NP, end of year 10,597$ 1,983$ 643$ 9,246$ 2,404$ 24,873$ For Fiscal Year Ending Septemper, 30th ($000) Fund Balance Net Position All fund had positive increases in Fund Balance/Net Position. Page 110 Prior Year Audit Findings:Fiscal Year •Internal Controls over Revenue 2020 & 2021 •Pooled Cash Reconciliation 2020 & 2021 •Excess Adjusting Entries 2018 -2021 •Expenditures in Excess of Appropriations 2021 All prior year audit findings corrected, cleared and no longer an issue. Current Year Audit Findings: SFR loan compliance: 1.Pledged Revenue 2.Debt Service Account X 3.Insurance 4.Certification of above by September 30th X * Staff are correcting the two items for next and future audits.Page 111 File Attachments for Item: F. Year-to-date Financial Report Page 112 75% Budget To Actuals Up To Line No Budget June, 2023 June, 2023 $ Var % Var Notes 1General Fund 2 Property Taxes 10,774,296$ 8,080,722$ 10,617,443$ 2,536,721$ 31% 3 Franchise Fees 756,000 567,000 473,801 (93,199) ‐16% 4Sales & Use Tax 240,000 180,000 180,225 225 0% 5Inter‐Governmental 561,449 421,087 432,144 11,057 3% 6Total Tax Revenue 12,331,745 9,248,809 11,703,612 2,454,803 27% 7Misc Revenue 5,500 4,125 28,876 24,751 600% 8Charges for Service 662,000 496,500 539,781 43,281 9% 9Investment Earnings 80,500 60,375 242,964 182,589 302% 10 Fines & Forfeitures 5,500 4,125 47,765 43,640 1058% 11 Rents & Leases 75,000 56,250 71,320 15,070 27% 12 Total Misc Revenue 828,500 621,375 930,706 309,331 50% 13 Grants 19,230 14,423 21,012 6,590 46% 14 Intra‐Governmental 850,000 637,500 675,003 37,503 6% 15 Other Sources 3,000 2,250 6,592 4,342 193% 16 Reserves 6,701,481 5,026,111 6,238,858 1,212,747 24% 17 Other Revenue 7,573,711 5,680,283 6,941,466 1,261,183 22% 18 General Fund‐Total 20,733,956 15,550,467 19,575,784 4,025,317 26% 19 Disc Sales Tax Fud 481,081 360,811 291,726 (69,085) ‐19% 20 Building Fund 1,823,434 1,367,576 1,866,538 498,963 36% 21 Water Fund 5,061,214 3,795,911 3,280,770 (515,140) ‐14% 22 Sewer Fund 1,876,603 1,407,452 1,321,268 (86,184) ‐6% 23 Other Funds‐Total 9,242,332 6,931,749 6,760,302 (171,447) ‐2% 24 Total 29,976,288$ 22,482,216$ 26,336,086$ 3,853,870$ 17% Budget To Actuals Up To Line No Fund/Dept Budget June, 2023 June, 2023 $ Var % Var 25 General Fund 20,656,123$ 15,492,092$ 13,207,725$ (2,284,367)$ ‐15% 26 Town Commission 213,646 160,235 164,769 4,534 3% 27 Town Manager 563,537 422,653 415,244 (7,409) ‐2% 28 Town Clerk 431,999 323,999 275,812 (48,188) ‐15% 29 Finance 624,815 468,611 431,799 (36,812) ‐8% 30 Legal 146,347 109,760 70,852 (38,908) ‐35% 31 Public Works 398,310 298,732 244,862 (53,870) ‐18% 32 Post Office 156,972 117,729 93,596 (24,133) ‐20% 33 Shared Support 696,250 522,188 533,734 11,547 2% 34 Police 3,046,124 2,284,593 2,130,175 (154,419) ‐7% 35 Fire Rescue 12,417,077 9,312,808 7,385,106 (1,927,701) ‐21% 36 Solid Waste 500,535 375,401 391,094 15,693 4% 37 Library 459,992 344,994 320,294 (24,700) ‐7% 38 Other Uses (Contg)‐ ‐ ‐ ‐ 0% 39 Transfers Out 1,000,519 750,389 750,388 (2) 0% 40 General Fund‐Total 20,656,123 15,492,092 13,207,725 (2,284,367) ‐15% 41 Discretionary Sales Tax Fund 507,834 380,875 139,312 (241,563) ‐63% 42 Building Fund 1,874,515 1,405,886 1,156,606 (249,281) ‐18% 43 Water Fund 5,061,214 3,795,911 3,388,380 (407,531) ‐11% 44 Sewer Fund 1,876,603 1,407,452 1,002,253 (405,200) ‐29% 45 Other Funds‐Total 9,320,166 6,990,125 5,686,551 (1,303,574) ‐19% 46 Total 29,976,289$ 22,482,216$ 18,894,276$ (3,587,940) ‐16% 47 (0) (0) 7,441,810$ ‐ Budget vs Actuals Expenditures BUDGET TO ACTUALS TOWN OF HIGHLAND BEACH FLORIDA BUDGET vs REVENUE & EXPENDITURE REPORT Revenues Budget vs Actuals Fund/Dept Page 113 Line No Estimated Revenues General Fund Disc Sales Tax Building Fund Water Fund Sewer Fund Total 1Taxes: 2 Property Taxes 10,617,443$ ‐$ ‐$ ‐$ ‐$ 10,617,443$ 3 Franchise Fees 473,801 ‐ ‐ ‐ ‐ 473,801 4Sales & Use Tax 180,225 280,650 ‐ ‐ ‐ 460,875 5Inter‐Governmental 432,144 ‐ ‐ ‐ ‐ 432,144 6 Miscellaneous Revenues 7Misc Revenue 28,876 ‐ ‐ ‐ ‐ 28,876 8Charges for Service 539,781 ‐ 1,739,525 2,308,568 1,249,317 5,837,191 9Investment Earnings 242,964 11,076 51,547 95,976 71,951 473,514 10 Fines & Forfeitures 47,765 ‐ 34,218 ‐ ‐ 81,982 11 Rents & Leases 71,320 ‐ ‐ ‐ ‐ 71,320 12 Total Revenues 12,634,318$ 291,726$ 1,825,290$ 2,404,545$ 1,321,268$ 18,477,146$ 13 Other Resources: 14 Grants 21,012 ‐ ‐ ‐ ‐ 21,012 15 Intra‐Governmental 675,003 ‐ 41,248 874,139 ‐ 1,590,391 16 Other Sources 6,592 ‐ ‐ 2,087 ‐ 8,679 17 Reserves 6,238,858 ‐ ‐ ‐ ‐ 6,238,858 18 Total Sources 19,575,784$ 291,726$ 1,866,538$ 3,280,770$ 1,321,268$ 26,336,086$ ‐ ‐ ‐ ‐ ‐ ‐ Expenditures, Uses 19 General Government 1,838,988$ 1,838,988$ 20 Public Safety 6,792,331 853,988 7,646,320 21 Culture / Recreation 320,294 320,294 22 Public Works 244,862 244,862 23 Sanitation / Solid Waste 391,094 391,094 24 Post Office 93,596 93,596 25 Enterprise Funds (Utilities) 1,577,737 837,253 2,414,990 26 Capital Outlay 2,776,157 139,312 40,115 236,225 ‐ 3,191,809 27 Total Expenditures 12,457,324$ 139,312$ 894,103$ 1,813,962$ 837,253$ 16,141,954$ 28 29 Other Uses 30 Debt Service 14 ‐ ‐ 1,161,918 ‐ 1,161,932 31 Transfers 750,388 ‐ 262,503 412,500 165,000 1,590,391 32 Total Expenditures & Other Uses 13,207,725$ 139,312$ 1,156,606$ 3,388,380$ 1,002,253$ 18,894,276$ 33 Net 6,368,058$ 152,414$ 709,932$ (107,610)$ 319,015$ 7,441,810$ ‐ ‐ ‐ ‐ ‐ ‐ From To Amount 35 Building Fund General Fund 262,503 Cover OH Allocation 35 Water Fund General Fund 412,500 Cover OH Allocation 36 675,003 37 Sewer Fund Water Fund 165,000 Cover Water Dept portion of Sewer Activity 38 General Fund Water Fund 709,139 Debt Service in Ad Valorem Taxs 39 874,139 40 General Fund Building Fund 41,248 Building Dept Portion of Zoning & Review Activity 41 Total Transfers 1,590,391 ‐ ACTUALS BY FUND TOWN OF HIGHLAND BEACH FLORIDA ALL FUNDS SUMMARY REPORT FOR JUNE 30, 2023 Page 114