07-11-2007 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 11, 2007
Present: Dr. Edwazd M. Eissey, Mayor
William Manuel, Vice Mayor
David B. Norris, President Pro Tem
Darryl Aubrey, Councilman
T.R. Hemacki, Councilman
Jimmy Knight, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Eissey called the Budget Workshop Session to order at 7:00 p.m. All members of Council
were present. All members ofstaffwere present, except the Village Attorney.
GENERAL FUND BUDGET
Village Manager Jimmy Knight reviewed the time schedule for adoption of the budget. The
• Council will establish the tentative millage rate and dates for its public heazings on the budget at
its July 26, 2007 Regular Session. Mr. Knight advised he would provide the Council with line-
itemdetail on the budget; however, the Council will be adopting a departmental budget.
Mr. Knight reviewed the impact of current and proposed tax reform legislation on the budget.
Mr. Knight advised that the Village is required to reduce the current year's rolled back rate by an
additional nine percent, which would result in reducing the current millage rate of 6.3 mills to
5.64 mills for the 2007-2008 fiscal yeaz. Mr. Knight reviewed the provisions for overriding the
tax cuts. Mr. Knight noted that establishing a millage rate between 5.64 mills and 6.1981 mills
(current yeaz rolled-back rate) will require atwo-thirds vote of the governing body; a millage
rate between 6.1981 mills and 6.3 mills requires a unanimous vote of the governing body; and
exceeding 6.3 mills requires voter approval.
Mr. Knight noted that the proposed budget is based on a millage rate of 6.1981 mills. Mr. Knight
detailed the budgetary impact of lowering the millage rate by percentages between one-tenth and
one mill.
Mr. Knight detailed the cost of construction, annual staffing, and operational costs for the Public
Safety North Substation, and noted that this has not been included in the FY 2008 budget.
Mr. Knight advised that due to the automatic aid agreement with Palm Beach Gazdens and Palm
Beach County the need for a substation is no longer present. Mr. Knight rewmmended that
given the current economic environment and lack of need, Council forgo this project or place it
• in abeyance, until the needs of the community change.
Minutes of Village Council Budget Workshop Session held July 11, 2007 Page 2 of 2
• Mr. Knight discussed personnel costs and reported that the budget includes 2.4% COLA, 0 - 5%
merit pay, as well as a projected 13.7% increase in health insurance. Mr. Knight reviewed
possibilities to reduce personnel costs, including workforce reduction through natural attrition,
buyouts, outsourcing, restructuring, and streamlining processes and procedures.
Mr. Knight reviewed alternate sources of revenue, such as fire service fees, gazbage collection
fees, storm water fees, and sidewalk/street repair and maintenance fees.
Mr. Knight reviewed the capital plan and noted that Council may choose to fund some items
from its undesignated reserve. As an example, Mr. Knight noted that the budget provides for a
$28,000 payment on a $350,000 loan for a new tennis facility, and asked Council to consider
paying for this capital expenditure from reserves.
Mr. Knight briefly discussed operating highlights by department. Mr. Knight reported that the
proposed budget represents a 2.28% increase over the current yeaz's budget. Mr. Knight
reviewed the impact of lowering the millage rate to 5.64 mills, and noted that tax reforms will
prohibit future millage increases by other than the amount of new construction. Mr. Knight
recommended setting the tentative millage rate at 6.1981.
CONSENSUS ITEMS
Discussion was held on outsourcing a portion of grounds maintenance on a month-to-month
• basis. Council consensus was to approve the Village Manager moving forward with month-to-
month contracts. It was noted that this is still subject to the purchasing regulations, and will
require bids and Council approval for any contracts exceeding $10,000.
Discussion ensued on alternatives for reducing the budget to meet a 5.64 millage rate without
using reserve funds. Mr. Knight suggested reducing or eliminating some capital items.
Discussion took place on scheduling upcoming Budget Workshops. The next Budget Workshop
meeting will be held from 6:00 p.m. to 7:30 p.m on Tuesday, July 17, 2007 to discuss the
Country Club budget, with an additional meeting on July 19th, if necessary, to complete the
Country Club budget. Other Budget Workshop dates are to be determined.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 5:45 p.m.
Melissa Teal, CMC, Village Clerk'
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