07-25-2012 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 25, 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,
Community Development Director Chuck Huff, and Information Technology Director Michael
Applegate were present.
The purpose of the meeting was to review the FY 2013 General Fund Budget.
CURRENT FINANCIAL CONDITIONS
Mr. Green reviewed the General Fund 3rd Quarter Financials and FY 2012 Tax Distribution Schedule.
• total revenues were at 89.78% on 6/30/12
• total department expenses were at 69.81% on 6/30/12
• $9,793,994 ad valorem revenue collected on 6/30/12 or 98.89% of the budgeted total
• preliminary financials indicated revenues exceed expenses by $3,535,525 on 6/30/12
• $55,647 total remaining contingency; $20,919 Manager and $34,728 Council contingency
• FY 2011 Unassigned Fund balance was $10,688,659, an increase of $245,561 over FY 2010
• Unassigned Fund Balance represents $61 % of the total FY 2012 Budget
• $662,141 projected increase in Unassigned Fund Balance for FY 2012
• developer contributions available for use total $480,000
Mr. Green provided an analysis of Fund Balance growth from FY 2009 to FY 2012.
MILLAGE
Mr. Green discussed various millage options for FY 2012: 7.67 mils with priority #1 and #2
capital items included; or 7.9967 mils with all capital items included; or 7,12 mils with no capital
items included and using Capital Improvement Plan funds to cover the cost of priority #1 and #2
capital items. Mr. Green detailed capital outlay requests for FY 2013. Mr. Green detailed the
estimated impact to taxpayers of various millage rates. Mr. Green reported that a millage rate
lower than 7.12 mils would require the use of reserves.
Brief discussion took place regarding the amount of Council and Manager contingency, which is
proposed at $103,614 total for FY 2013.
Minutes of Village Council Budget Workshop Session held July 25, 2012 Page 2 of 2
REVENUES
Mr. Green detailed revenues and expenses by department and category.
• FY 2013 revenues total $18,484,863
• ad valorem taxes = $10,829,893 or 58.59% of the budget
• combined estimates of all other revenue sources= $7,654,970 of 41.41% of the budget
• total gross taxable value decreased to $1,486,295,612 — a reduction of $8,987,382 or
0.6% in taxable value from FY 2012
COMPENSATION OVERVIEW
• zero market adjustment or cost -of- living adjustment
• merit increase of zero to 5 %, or step increase, per collective bargaining agreements
• 19.86% Village contribution for GETPE defined benefit pension; 6% employee contribution
• 20.22% Village contribution for police and fire pension; 2% 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
Mr. Green discussed the impact of possible changes in the amount of the Village's contribution
to the defined contribution pension plan. Mr. Green reviewed health insurance costs and noted
that the short-term disability benefit was not approved; therefore. although shown in the draft
budget, the cost will not be included in the final budget adopted by Council.
PERSONNEL SUMMARY
• 139 full -time employees
• 69 part-time employees, including the addition of 1part-time CALEA Manager position
in the Police Department
EXPENSES
• $18,484,863 combined total expenses
• $13,308,779 personnel costs or 72% of the budget
• $4,200,249 operating costs or 22.72% of the budget
• $103,614 combined Council /Manager contingency or 0.56% of the budget
• zero debt service — Village is debt free
• $872,221 total capital outlay (priority #1 and #2 capital items)
COUNCIL CONSENSUS ITEMS
• consensus for a tentative millage rate of 7.12 mils
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:40 p.m.
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Melissa Teal, CMC, Village Clerk