07-10-2013 VC B WS-M MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 10, 2013
Present: William L. Manuel, Mayor
Darryl C. Aubrey, Sc.D., Vice Mayor
Robert A. Gebbia, President Pro Tern
David B. Norris, Councilman
Doug Bush, Councilman
Ed Green, Village Manager
Melissa Teal, Village Clerk
ROLL CALL
Mayor Manuel 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,
Director of Golf Lee Stroever, and Food and Beverage Director David Naumann were present.
The purpose of the meeting was to review the proposed FY 2014 Country Club Budget.
CURRENT FINANCIAL CONDITIONS
Mr. Green reviewed the Country Club Activity Report, 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 6/30/2013.
• Unrestricted Fund balance was $557,954 as of 9/30/2012
• 216 Golf Memberships as of 6/30/13 (excluding summer memberships); $65,992 less
than FY 2012
• $670,981 in Cart Rentals as of 6/30/13; $34,746 less than FY 2012
• $736,009 in greens fees as of 6/30/13; $6,853 less than FY 2012
• $230,604 in Driving Range proceeds; $16,237 increase over FY 2012
• Village Tavern Restaurant YTD shortfall of$109,632
• $75,064 remaining contingency for FY 2013
• Country Club revenues exceed expenses by $502,660 as of 6/30/2013, with a projected
net increase of$541, or a break-even year for FY 2013
• non-member play is 56% of all rounds played
Regarding the loss in membership revenue, Mr. Stroever explained that junior memberships are
only $300. The Council expressed that the budget should reflect the number of regular
members. Discussion ensued on raising or lowering the cost of membership. Suggestions were
advanced on ways to promote the course and increase play.
Mr. Green reviewed Food & Beverage sales and expenses through the 3rd quarter, and inventory
on hand. Mr. Green noted expenses included purchasing a new beverage cart, safety
improvements, painting, and repairs. Discussion took place regarding inventory.
Minutes of Village Council Budget Workshop Session held July 10, 2013 Page 2 of 3
FY 2014 COUNTRY CLUB BUDGET
Mr. Green projected an increase in revenue of $137,000 in FY 2014 over the FY 2013 total of
$3,647,000, due to improved course conditions, an emphasis on banquets, and the continued
strong performance of the driving range.
EXPENSES
• combined Personnel, Operating, Capital and Debt Service expenses total $3,784,955, a
decrease of 1.33% or $51,029 from FY 2013
• Administration expenses total $165,922, a decrease of 43.75% or $129,059 from FY 2013
• Golf expenses total $2,703,264, a decrease of 2.41% or $66,838 from FY 2013
• Food and Beverage expenses total $915,765, including $24,000 for a new kitchen floor; an
increase of 3.61% or $31,919 over FY 2013
• contingency projected at $13,118
• personnel expenses total $1,117,801 or 29.53% of the budget
• operating expenses total $2,093,284 or 55.31% of the budget
• capital expenses total $12,000 or 0.32% of the budget
• debt service totals $548,751 or 14.50% of the budget
Mr. Green explained the decrease in expenses was due to renegotiation of the golf course
maintenance contract and a reduction in the amount allocated for contingency.
PERSONNEL CHANGES
• overall addition of 2 full -time positions and 11 part-time positions
• 1 part-time Outside Service Attendant position added
• 1 part-time Golf Shop Attendant position added
• 2 part-time Driving Range /Ranger positions added
• 1 part-time Assistant Restaurant Manager position changed to 1 full -time
• 1 part-time Banquet Event Coordinator position changed to 1 full -time
• 2 part-time Line Cook positions added
• 5 part-time Service Personnel positions added
• 2 part-time Dishwasher positions added
Mr. Green reviewed personnel changes to help the operation of the restaurant and noted other
changes are related to the Affordable Care Act. Discussion ensued on employee turnover.
COMPENSATION OVERVIEW
• $67,098 total Compensation Study impact, includes:
o $2,555 Administration
o $41,722 Golf
o $22,821 Food & Beverage
• merit increase 2 -5 %, budgeted at 3.75% average
• 20.82% defined benefit pension contribution by Village, and 6% employee contribution
• 15% defined contribution pension plan mandatory for all newly hired non -union
eligible employees
Minutes of Village Council Budget Workshop Session held July 10, 2013 Page 3 of 3
REVENUES
`.
` • $3,784,955 total revenues
• Cart Rental and Walking Fees = $951,142 or 25.13% of the budget
• Greens Fees = $822,590 or 21.73% of the budget
• Food and Beverage = $799,000 or 21.11% of the budget
• Membership = $579,335 or 15.31% of the budget
• Driving Range = $281,000 or 7.42% of the budget
Mr. Green advised that no increase in membership fees was proposed. Discussion ensued
regarding membership categories.
Mr. Green reviewed greens fees, which vary depending on the season and time of day. Mr. Green
projected total rounds at 43,000 for FY 2014.
Mr. Stroever stated cart fees were raised because the new golf carts and GPS system offer a
higher amenity. Discussion took place concerning walkers. Mr. Stroever estimated walkers
account for about 4500 rounds.
Mr. Green discussed the recommendations made by SCORE for the restaurant, including the
need to increase the budget for marketing and advertising, and concentrating on the niche market
for banquets. A special meeting will be held at which staff will present options on the restaurant.
CONSENSUS ITEMS
It was determined that Council would consider and make a decision on the Compensation Study
at a Special Meeting on July. The Special Meeting on the restaurant was set for August 1.
Discussion ensued on changes to the Budget Workshop schedule. The new schedule will be
emailed to Council.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:52 p.m.
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Melissa Teal, CMC, Village Clerk