04-13-2011 VC SP-MMINUTES OF THE SPECIAL SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
APRIL 13, 2011
Present:
Darryl C. Aubrey, Sc.D., Mayor
David B. Norris, Vice Mayor
William L. Manuel, President Pro Tem
T.R. Hernacki, P.E., Councilman
Robert A. Gebbia, Councilman
Jimmy Knight, Village Manager
Melissa Teal, CMC, Village Clerk
•
ROLL CALL
Mayor Aubrey called the meeting to order at 7:00 p.m. All members of Council were present,
except Councilman Hernacki, who arrived at 7:06 p.m. All members of staff were present,
except the Village Attorney. Community Development Director Chuck Huff Human Resources
Director Mary Kay McGann, and Information Technology Director Michael Applegate were present.
GOALS AND OBJECTIVES
The purpose of the Special Session was to discuss the Council's goals and objectives for the upcoming
fiscal year, in order to provide guidance to administration regarding preparation of the FY2012 Budget.
Mr. Knight gave a presentation entitled Village Council 's FY 2012 Goals & Objectives.
FY 2011 MID-YEAR BUDGET REVIEW
Mr. Knight presented amid-year review ofthe Country Club and General Fund budgets.
• Country Club Revenues: 58.46% collected through 3/31/11
• Country Club Expenses: 46.14% collected through 3/31/11
• Country Club Unrestricted Fund Balance: $403,261 as of 9/30/10
• Country Club Mid-year Preliminary Financials: revenues exceed expenses by $500,277
Mr. Knight reviewed the Village Tavern Restaurant operation. Mr. Knight noted 50% of
restaurant revenue is derived from banquets. It was requested that Mr. Knight provide data
regarding banquet profitability versus restaurant profitability.
• General Fund Ad Valorem Taxes: 90.82% of the budgeted amount collected through 3/31/11
• General Fund Revenues: 77.46% collected through 3/31/11
• General Fund Expenses: 45.98% through 3/31/11
• General Fund Unreserved Undesignated Fund Balance: $10,443,099 as of 9/30/10
Mr. Knight reviewed the schedule of tax distributions from the Palm Beach County Tax Collector
for FY2008 through 3/16/2011.
INVESTMENT POLICY
• $7,909,872 to date transferred for investment as core funds, equaling 45% of FY2011
GF adopted budget ($17,506,072)
• Core investment portfolio: $8,159,533.19 as of 3/31/11
• CAFR of Village financial statements for year ending 9/30/10 found that Village investments
are in accordance with the Village's investment policy
Discussion ensued regarding balances in the State Board of Administration (SBA) Funds A and B, as
well as the amount of operating capital maintained in a local checking account.
Minutes of Village Council Special Session held April 13, 2011 Page 2 of 4
FY 2012 BUDGET
Mr. Knight reported 56 new businesses were established in the Village last year, and noted
• pending construction and property redevelopment including Frigate's restaurant, Cod & Capers
Seafood, West Marine, and athree-story office complex.
Mr. Knight reviewed the organizational cost savings strategies and actions taken to increase
savings without reducing service levels. Mr. Knight discussed alternate revenue sources and
noted that a garbage collection fee could be implemented and collected through the Tax
Collector's office; however, action would need to be taken before January 2012, in order to be
effective for the FY2013 Budget.
Mr. Knight reviewed potential FY2012 budget challenges, tax revenue projections, the
appropriate amount of reserve funds as a percentage of the budget, and funding opportunities.
Discussion ensued on the anticipated reduction in revenue derived from FPL franchise fees.
STRATEGIC PLANNING
Council reviewed its analysis of Strengths, Weaknesses, Opportunities, and Threats (SWOT) and
concluded as follows:
STRENGTHS
Affluent community
Strong fmancial reserves
Infrastructure in good condition
Taken steps to reduce costs
Generally supportive residents
Unified Council
High quality staff
Advisory Boards/citizen participation
Location/waterways
Tradition - 2nd & 3rd generation residents
OPPORTUNITIES
Seek additional funding sources: Service fees, Grants
Seek to influence State legislature
Pursue further cost efficiencies
Improve relationship with business community
Annexation
WEAKNESSES
Shrinking tax base
Shrinking sources of non-ad valorem revenues
State budgets in the red
State pressures on municipal taxing authority
Limited retail
No anchor or destination
THREATS
Weak economy with inflation risk
State and County pressures on home-rule authority
of municipalities
Increase in unfunded mandates
Increased foreclosures of residential property
Under-funded retirement accounts
Hurricane threats
Aging and deteriorating buildings
VILLAGE COUNCIL MISSION STATEMENT
To provide the highest quality of service to the residents of North Palm Beach in the most
efficient, effective, and fiscally responsible manner by providing sound, clear policy guidance
that encourages, promotes, protects, and improves the welfare of the Village of North Palm
Beach, ensuring that North Palm Beach remains "the best place to live under the sun."
VILLAGE MANAGER MISSION STATEMENT
• The Manager is committed to providing the most current and proven effective administration and
operational methodologies to improve service delivery while reducing costs and meeting the ever
changing challenges in municipal government. His goal is to establish and mauitam a respected
and trusted public service organization through equity, transparency, honor, integrity,
commitment, and stewardship.
Minutes of Village Council Special Session held Apri113, 2011
CORE VALUES
• The Village ofNorth Palm Beach values...
• Ethics and Integrity
• Leadership and Vision
• Open Communication
• Respect for Differences
• Dedication
• Teamwork
• Exemplary Customer Service
COUNCIL'S FY 2012 GOALS AND OBJECTIVES
Council discussed and prioritized its goals-and objectives for FY2012 as follows:
Page 3 of 4
1. Protect the Financial Integrity of the Village in a Difficult Economic Environment
a. Seek alternative sources of funds including grants
b. Seek to influence Florida legislature in areas of unfunded mandates, taxation, and revenue sharing
c. Continue to advance abusiness-friendly atmosphere in the Village and work with the
Northern Chamber ofCommerce to encourage new businesses and promote economic development
d. Actively pursue annexation opportunities where and when available
e. Address Pension Fund unfunded liabilities
2. Maintain a High Quality of Life in the Village
a) Improve and maintain Village waterways as a unique Village asset
b) Maintain the highest quality of public safety services through national accreditation of its law
enforcement component and through fire rescue level of service partnerships
c) Encourage high standards for the overall appearance of the community
d) Enhance communication with residents through mediums such as the Village Newsletter and website
e) Improve communication and response to the public; encourage suggestions from the public
fj Maintain service levels in the face of declining revenue sources
3. Maintain and improve all Recreational Facilities of the Village
a) Maintain high level of appearance and maintenance of Country Club facilities (including
tennis and swimming) and all Village parks
b) Seek ways to improve the use of parks by residents
c) Actively promote resident and non-resident use of the Country Club facilities
d) Further improve Country Club activities and related services
e) Enhance golf membership through increased member events
fj Enhance tennis and swim operations at the Country Club
Discussion ensued on seeking grant funding in future for replacement of the modular buildings at
Anchorage Park. A suggestion was made to use the General Fund Unreserved Undesignated
Fund Balance to have design plans prepared for the planned second recreational building, in
order to be closer to "shovel ready" should grant funding be available. It was suggested that
• Council consider adding this item to a list of proposed projects. Mr. Knight advised that funds
designated for recreational purposes could be utilized for design plans. A suggestion was made
to consider expending funds to prepare plans for all proposed capital projects in order to identify
the costs and steps necessary to proceed with the projects.
Minutes of Village Council Special Session held Apri113, 2011 Page 4 of 4
4. Enhance the Spirit and Participation of our Community
a) Encourage Village resident participation on Boards, programs and events
• b) Improve communication with businesses; encourage participation of businesses in Village events
c) Enhance and promote organized youth sport leagues and programs within the Village
d) Continue Village volunteer service similar to the very successful "Support Our Troops" program
Mr. Knight noted the success of the Ad Hoc Business Advisory Committee. Council noted the
contributions made by the Friends of the Library, and the assistance provided by the AARP Tax
Aide volunteers.
5. Improve the Overall Appearance of the Village
a) Continue improvement of code compliance and education with special emphasis towards the
abatement of nuisance and abandoned properties
b) Continue support of the Northlake Boulevard Corridor Task Force to bring about uniform
beautification
c) Maintain uniformity of Village property design, colors and signage
d) Maintain high standards of overall appearance throughout the Village including
commercial, residential, village-owned properties and roads.
COUNTRY CLUB RESTAURANT
Mr. Knight reported that despite an increase in revenues during the season, the Village Tavern
Restaurant continues to operate with ayear-to-date shortfall of $82,226.51, with $21,881.85 in
inventory on hand. Mr. Knight discussed the impact on other departments, including HR and
Finance. Discussion ensued regarding available options for the restaurant operation, including
engaging athird-party management service or seeking an outside vendor to lease the facility.
Mr. Knight distributed a memo from Director of Food and Beverage, Keith Riolino, outlining
proposed changes to decrease costs and increase profitability of the restaurant. Mr. Knight
reviewed measures taken to reduce staffing and food costs.
Mr. Knight reviewed the Budget Workshop schedule, and noted that Council's final goals and
objectives would be presented to departments during the staff budget retreat on May 4, 2011.
The next Council Budget Workshop will be held 7/6/11 to review the Country Club Budget.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:55 p.m.
Melissa Teal, CMC, Village Clerk