First Budget Workshop Summary
Village of Palmetto Bay
May 26, 2021
Palmetto Bay held its first Budget Workshop last night at 7 pm to discuss the community's funding priorities in preparation for the upcoming Fiscal Year 2021-22 budget. The new budget year runs from October 1, 2021 to September 30, 2022.

Village Manager Nick Marano delivered an informative presentation, first reiterating the priorities previously identified by the Village Council. These 14 priorities, ranging from updating the Village website to restoring park facilities, each fall under the seven key focus areas identified in the Village's Strategic Plan.

The upcoming budget will be built upon the 14 priorities identified by the Village Council with some of the projects possibly expanding over several budget years due to time and fiscal constraints. "All priorities will have budgetary implications for next year", said Manager Marano. The Manager provided a brief explanation of the budgetary funds and categories found in the municipal budget. He also presented the allocation percentages for the revenues and expenditure categories as a snapshot of where funding comes from and where it is spent. That discussion was followed with an overview of the Village's current fiscal standing and expectations for the new fiscal year.

Falling revenues due to the COVID-19 pandemic pointed to an anticipated $800,000 deficit for the current fiscal year. However, due to the stewardship of the Council and staff in carefully managing expenditures, the deficit has been decreased by 50%. Manager Marano explained that the COVID-19 pandemic, although greatly diminished, continues to be a matter of concern that should not be completely dismissed at this time. However, revenues that dropped significantly in FY 2020-21 due to the economic impact of the COVID-19 virus, are expected to rebound to pre-pandemic levels. The previous FPL franchise fee will also be going into effect.
Manager Marano also gave the good news that refinancing our current bond would bring approximately $200,000 in savings to the Village. Additionally, Palmetto Bay is poised to receive $12,000,0000 in American Rescue Plan Act (ARPA) funding. Half should be disbursed to the Village in June 2021 and the remainder in March 2022.
ARPA funding is expected to refund approximately $4,500,000 to the General Fund and the Enterprise Fund in lost revenue due to COVID-19. More importantly, the Village has learned that stormwater projects are now eligible under ARPA's definition of "water" projects. As a waterfront community, Palmetto Bay is particularly vulnerable to flooding, and stormwater projects effectively mitigate flooding conditions. However, such projects can be quite expensive. Manager Marano added that there may be opportunities to use ARPA funding for the rebuilding of the recreation room at Coral Reef Park, which was demolished a few years ago.

Following the presentation and public comments, members of the Mayor & Council shared their comments and recommendations with the Village Manager and addressed questions to the Department Directors. Mayor Cunningham emphasized the importance of connecting the Council priorities to the budget in a more deliberate manner. Vice Mayor Tellam, along with other Councilmembers, added that including benchmarks and progress information related to the priorities would be beneficial to both Council and staff. Manager Marano committed to a balanced budget, with overall revenues matching or falling below overall expenditures, exclusive of any ARPA funding. "Even without the COVID-19 money, we are striving to balance our primary budget", said Manager Marano.

The next Budget Workshop is scheduled for Tuesday, June 29th at 7 pm.

If you missed the workshop last night, you can still watch it on Facebook or on our website . You can also read the Manager's PowerPoint Presentation.
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