WPB Mayor: General Fund Budget Prioritizes Essential Services With Minimal Workforce Reductions

From the City of West Palm Beach:

Sept 1, 2020

Dear West Palm Beach neighbor,

I am writing you today with an important update about our West Palm Beach General Fund budget.

The City of West Palm Beach continues to be a strong, resilient and fiscally responsible city. My administration and I have prepared a $194 million balanced General Fund budget that prioritizes essential services for our residents and neighborhoods with minimal workforce reductions. If this proposed balanced budget is adopted, there would be no millage increase and no increase in fees. I believe the proposed balanced budget will ultimately maintain the overall quality of life for residents, help make our community even safer, and promote continued economic development within our city.

This was a challenging process. Our city faced a $10 million budget shortfall due to the impacts of COVID-19 and the loss of nearly $7 million in annual revenues. The 2021 fiscal year budget saw one of the largest single year drops in revenues in our city’s history. Please note the following:

• $2.8 million loss in intergovernmental revenue, including ½ cent sales tax
• $2.2 million loss in license, permits and franchise fees
• $1.6 million loss in electric, gas and business taxes

Just as families and businesses are tightening their belts to manage the impacts of COVID-19, our city is also cutting its budget in response to the impacts of COVID-19. Please note that the City is not balancing the budget on the backs of our employees, or by eliminating essential services, or by failing to meet our legal obligations to our citizens, businesses or employees. In working to maintain essential services such as police and fire, library, sanitation, parks and recreation, the proposal includes the following:

• Cuts to virtually all discretionary funding including travel, training, memberships, professional services.
• Pay freezes for senior staff and other non-union employees.
• Reduction in funding for operating supplies.
• Budget reallocation of seven positions to other special revenue sources.
• 43 vacant positions were eliminated and will not be filled.
• 5 occupied positions will be eliminated. (Note that those employees will have an opportunity to apply for mission-critical positions in the City. The City also has a program in place to help them find new employment and obtain stop-gap assistance).

Recently, some of you voiced concern about possible cuts to our valued library and parks programs. Thank you for speaking up. We listened and have responded accordingly. The proposed balanced budget does NOT include cuts disproportionately affecting the Mandel Public Library and the Department of Parks and Recreation. Our library and parks program cuts go toward part-time specialists and non-city employees, many of whom are currently not working due to the limitations of COVID-19.

Benefits achieved by this proposed balanced budget include:

• Continued programs and essential services for residents and business owners with a focus on customer service.
• Unchanged millage rate and no increase to fees.
• Protection of 5% step pay for West Palm Beach Police and Fire Departments.
• Protection of a 3% cost of living increase for SEIU and PMSA employees.
• No widespread furloughs of employees.
• The Fire Assessment Fee has enabled us to now add nine additional firefighters, two fire trucks, and improvements to fire stations. There is no increase to the Fire Assessment Fee.

The City has not completed negotiations with police and fire unions. However, the fact that union negotiations have not been completed does not preclude the City from adopting a balanced budget. The balanced budget can be amended, if appropriate and as needed, once negotiations have concluded. We remain committed to supporting our West Palm Beach Police and Fire Departments with the proper training, personnel and equipment to keep our community safe.

After nine public presentations at workshops, Commission meetings, and community meetings, we presented the proposed balanced budget to the City Commission on August 24, 2020. I fully expect that all action will be taken by my staff and the Commission to permit the City to meet its statutory obligation to adopt a balanced budget on time.

We are facing unprecedented times; we are in the midst of dual crises of public health and economic uncertainty. Governments, businesses and families are making tough choices to survive. The City, under my administration, is doing the same as we work to fulfill our mission to serve the public.

The proposed balanced budget works to minimize impacts, avoids the worst-case scenario, and ensures West Palm Beach continues to be financially solvent, while providing services to residents and business owners.

A public hearing to adopt the tentative FY’21 balanced budget and millage rate is scheduled for September 10, 2020 at 5:01 p.m. The second and final public hearing to adopt the final balanced budget and millage rate is scheduled for September 24, 2020 at 5:01 p.m.

Yours in service,

Mayor Keith A. James

This press release was produced by the City of West Palm Beach. The views expressed are the author's own.