07-11-2012 VC B WS-MC� MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 11, 2012
Present: David B. Norris, Mayor
William L. Manuel, Vice Mayor
Darryl C. Aubrey, Sc.D., President Pro Tern
Robert A. Gebbia, Councilman
Doug Bush, Councilman
Ed Green, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Norris called the meeting to order at 7:00 p.m. All members of Council were present. All
members of staff were present, except the Village Attorney. Finance Director Sarnia Janjua,
Head Golf Professional Lee Stroever, First Assistant Golf Pro Casey Mitchell, Food and
Beverage Director Dave Naumann, Community Development Director Chuck Huff, and
Information Technology Director Michael Applegate were present. The purpose of the meeting
was to review the Country Club Budget for FY 2013.
CURRENT FINANCIAL CONDITIONS
Mr. Green reviewed golf course memberships and rounds played, as well as the year -to -date
summary of revenues and expenses. Mr. Green gave a comparison of the budgeted revenue
versus revenue received as of 6/30/2012.
• Unrestricted Fund balance was $385,623 as of 9/30/2011
• FY 2012 Driving Range proceeds were $214,368 on 6/31/2012; $41,218 increase over FY 2011
• FY 2012 Summer Memberships $32,175
• Village Tavern Restaurant YTD shortfall of $1,391
• Country Club revenues exceed expenses by $636,778 as of 6/30/2012, with a projected
net increase of $137,161 for FY 2012
• FY 2012 remaining Country Club contingency $207,850
• FY 2011 Unrestricted Net Assets $385,623
• FY 2012 Unrestricted Net Assets estimated at $522,784
Discussion took place regarding tracking rounds of play by members and non - members,
residents and non - residents.
Discussion was held concerning membership rates. Council consensus was to leave membership
rates as proposed (same as FY 2012).
Discussion took place on the driving range. Mr. Stroever suggested charging $6.00 for a bucket
of balls for non - members, an increase of $1.00. Mr. Stroever was directed to consult the Golf
Advisory Board for its views on the proposed increase in the cost of range balls. Discussion
ensued on a credit card machine for the driving range. Mr. Stroever will investigate installing a
credit card machine.
Minutes of Village Council Budget Workshop Session held July 11, 2012
Page 2 of 3
FY 2013 COUNTRY CLUB BUDGET
Mr. Green detailed revenues and expenses by department and category. Mr. Green noted the
CEnterprise Fund is comprised of three operating divisions: administration, golf operations, and
i food and beverage.
Discussion was held regarding the golf cart lease and trade -in of the golf carts.
Mr. Green noted the administration budget includes $30,000 to develop a concept for a new
clubhouse. Mr. Green expressed the need to initiate discussions on the clubhouse now, in order to
begin planning for this long -range project, which is likely 5 -10 years in the future. Discussion took
place. Mr. Green suggested it might be helpful to engage a professional with expertise in this area to
help facilitate a discussion and interchange of ideas about the project.
• combined Personnel, Operating, Capital and Debt Service expenses total $3,820,499, an
increase of 3.51 % or $129,654 over FY 2012
• Administration expenses total $297,476, a decrease of 16.43% or $58,464 from FY 2012
• Golf expenses total $2,767,273, an increase of 2.56% or $69,119 over FY 2012
• Food and Beverage expenses total $884,184, an increase of 4.44% or $37,583 over FY 2012,
and include $53,639 for a new Halfway House and $13,000 for new carpeting
• contingency projected at $128,434
• personnel expenses total $939,631 or 23.79% if the budget
• operating expenses total $2,261,028 or 57.26% of the budget
• capital expenses total $53,639 or 1.36% of the budget
• debt service totals $566,201 or 14.34% of the budget
PERSONNEL CHANGES
• overall reduction of 2 part-time positions and addition of 1 full -time position
• title change from Head Golf Professional to Director of Golf
• 1 part-time Restaurant Sales Coordinator position deleted
• 1 part-time Banquet Event Coordinator position added
• 1 part-time Chef position deleted
• 1 part-time Line Cook position deleted
• 1 full -time Kitchen Manager /Chef position added
Discussion took place regarding the title change from Head Golf Professional to Director of Golf.
Mr. Stroever explained the title change reflects his actual duties more accurately and complies
with the PGA of America classification. By consensus, Council approved the title change.
Discussion ensued on banquets, and a breakdown of banquet versus restaurant revenues and expenses
was requested. A suggestion to consider catering was proposed. Discussion was held regarding
a business plan for the restaurant. Council expressed that determining current and future objectives
of the restaurant operation would be a key component in its upcoming discussion on the clubhouse.
COMPENSATION OVERVIEW
• zero market adjustment or cost -of- living adjustment
• merit increase budgeted at 3.75% average
• 19.86% defined benefit pension contribution by Village, and 6% employee contribution
• 15% defined contribution pension plan mandatory for all newly hired non -union
eligible employees
• 3.91 % health and dental insurance increase anticipated; change from Humana to Cigna
Minutes of Village Council Budget Workshop Session held July 11, 2012 Page 3 of 3
CAPITAL EXPENDITURES
• capital expenses total $53,639 for a new Halfway House to be located between the 10th
Tee box and the driving range
Mr. Naumann reviewed the conceptual plans for renovation of the driving range building. Council
consensus was to place this item on an upcoming Workshop agenda and move forward with the
"Tavern on the Turn" in order to have the work completed before the start of the high season.
DEBT SERVICE
• debt service expense for FY 2013 totals $566,201
• golf course renovation loan expires in 2024; principal outstanding on 9/30/2011 was $3,844,928
• golf cart capital lease expires in 2013; principal outstanding on 9/30/2011 was $173,034;
the final payment includes a balloon payment of $96,000
REVENUES
• FY 2013 revenues total $3,948,933
• Cart Rental and Walking Fees = $976,920 or 24.74%
• Greens Fees = $912,480 or 23.11 %
• Food and Beverage = $821,300 or 20.80%
• Membership = $623,580 or 15.79%
• Driving Range = $209,026 or 5.29%
GOLF CLUB MEMBERSHIPS AND RATES
Mr. Stroever suggested adding a Touring Professional Membership at the same price as a
resident membership, and a Summer Family Membership at a cost of $995. Consensus of
Council was to add the membership categories as proposed.
Mr. Green reviewed membership rates, and greens fees, cart rental, and walking fees projections.
Discussion took place on the resident's card. Discussion ensued on the discount offered to residents.
Discussion was held regarding the donation of golf foursomes to charitable events. Council
consensus was to increase the maximum number of donated foursomes from 12 to 24 per year,
subject to Mr. Stroever's discretion. Mr. Stroever confirmed that these donations could be redeemed
only during the summer off - season.
Mr. Stroever discussed the possibility of adding another short game area, which would provide a
practice area allowing up to an 80 -yard shot, and would double as a nursery green. Mr. Stroever
estimated the cost to be $20,000. Council requested that Mr. Stroever provide a conceptual plan
for further discussion.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:38 p.m.
Melissa Teal, CMC, Village Clerk