07-16-2013 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
1 JULY 16, 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,
Information Technology Director Michael Applegate, and Public Works Director Brian Moree
were present.
The purpose of the meeting was to review the proposed FY 2014 General Fund Budget and the
Village Council, Village Clerk, Village Attorney, Village Manager, Human Resources, Finance,
Information Technology, and Debt & Other departmental budgets.
CURRENT FINANCIAL CONDITIONS
Mr. Green reviewed the General Fund 3rd Quarter Financials, FY 2013 Tax Distribution Schedule, and
FY 2013 end of year projections.
• total revenues were at 90.72% or 0.59% higher than FY 2012 as of 6/30/13
• total department expenses were at 74.36% on 6/30/13
• $9,774,412 ad valorem revenue collected on 6/30/13 or 101.16% of the budgeted total
• preliminary financials indicated revenues exceed expenses by $2,893,160 on 6/30/13
• $12,643 total remaining Council contingency
• Unassigned Fund balance was $11,244,977 as of 9/30/12, or 64% of the FY 2013 Budget
• Unassigned Fund Balance represents $64% of the total FY 2013 Budget
• $450,000 projected Unassigned Fund Balance increase for FY 2013, after $213,359 CIP transfer
Discussion took place concerning the collection of ad valorem taxes by the Palm Beach County
Tax Collector as it pertains to early payment discounts and late payment penalties.
Vice Mayor Aubrey suggested using budget savings to create a reserve for future tax relief,
instead of transferring it to Reserve for the compensation study. Mrs. Janjua explained the use of
reserves to balance the budget and advised it would require enactment of an ordinance to commit
this year's surplus. It was suggested that a ceiling be set on undesignated reserves and any surplus
above that amount be used to reduce future budgets.
MILLAGE
Mr. Green detailed millage options for FY 2014. Mr. Green proposed a maximum millage rate
of 7.283 mils, which would include funding for the compensation study.
Minutes of Village Council Budget Workshop Session held July 16, 2013 Page 2 of 4
REVENUES
Mr. Green reviewed General Fund projected revenues for FY 2014. Discussion took place
concerning the decrease in gas franchise fees.
$18,766,868 total revenues; a budget increase of $1,267,144 or 7.24% over FY 2013
$10,568,069 ad valorem taxes; 56.31% of the total budget
$2,152,000 utility service taxes; 11.47% of the total budget
$2,142,435 charges for services; 11.42% of the total budget
COMPENSATION OVERVIEW
0-5% merit increase, or step increase, per collective bargaining agreement
20.82% Village contribution for GE/FPE defined benefit pension; 6% employee contribution
21.08% Village contribution for police and fire pension; 2% employee contribution
15% defined contribution pension plan; mandatory for all newly hired non-union eligible
employees and “non-certified” PBA eligible employees
$638,537 compensation study impact
Discussion ensued regarding the increase in pension contributions. Mrs. Janjua will contact the
actuaries for an explanation.
PERSONNEL SUMMARY
141 full-time employees; increase of 2 full-time employees in Community Development
68 part-time employees; decrease of 1 part-time employee
EXPENSES
$18,766,868 total expenses
$4,710,559 operating costs
$14,056,309 personnel costs
zero contingency
zero capital
zero debt service – Village is debt free
CIP FUND RECAP
Mr. Green summarized FY 2013 CIP activity and reported $864,582 remained in the CIP Fund.
With an estimated transfer of $213,359 at FY 2013 year-end bringing the total balance to
$1,077,941, Mr. Green advised it would be sufficient to cover 90% of the FY 2014 capital
outlay of $1,217,484.
VILLAGE COUNCIL
$50,475 personnel costs
$91,424 operating costs
no capital expense
$141,899 total expenses; 1.58% decrease from FY 2013
Minutes of Village Council Budget Workshop Session held July 16, 2013 Page 3 of 4
VILLAGE CLERK
$281,634 personnel costs
• $29,780 operating costs
• no capital expense
• $311,414 total expenses; 4.37% increase over FY 2013
• no personnel changes
• 3 full -time employees
VILLAGE ATTORNEY
• $160,000; 2.70% or $4,437 decrease from FY 2013
VILLAGE MANAGER
• $275,735 personnel costs
• $41,808 operating costs; includes $31,000 for market analysis study
• no capital expense
• $317,543 total expenses; 17.38% increase over FY 2013
• no personnel changes
• 2 full -time employees
HUMAN RESOURCES
• $220,434 personnel costs
• $75,109 operating costs; includes $25,000 for online performance review implementation
and employee handbook revisions, and $25,000 for holiday parry and employee gift baskets
• no capital expense
• $295,543 total expenses; 6.01% increase over FY 2013
• Human Resources Specialist title changed to Human Resources Manager
• 2 full -time employees
Mr. Green explained the title change from HR Specialist to HR Manager would conform to
industry standards. Mr. Green advised there is no salary increase associated with the change.
Mrs. Janjua advised the title change was Evergreen's recommendation, based on positions with
equivalent job duties and experience. During discussion, Council indicated the need for
information from Evergreen regarding comparable job duties and responsibilities used in the
Compensation Study, and clarification on the legal definition of manager. Further discussion of
the Compensation Study will be held on July 30, 2014.
Discussion took place concerning funding for the online performance review software.
Consensus of Council was that one -time software expenses should be included in the capital plan.
Mrs. Janjua advised that once the final quote for the software is received, it would be included in
the adopted budget as a capital item for CIP.
Minutes of Village Council Budget Workshop Session held July 16, 2013 Page 4 of 4
FINANCE
• $526,698 personnel costs
• $52,400 operating costs
•. no capital expense
• $579,098 total expenses; 5.56% increase over FY 2013
• no personnel changes
• 5 full -time employees and I part-time employee
• Finance Director also oversees 1 full -time Country Club Accounting Clerk and 1 full -
time Project and Procurement Manager (located in the Public Works Department)
INFORMATION TECHNOLOGY
• $321,938 personnel costs
• $32,100 operating costs
• no capital expense
• $354,038 total expenses; 5.68% increase over FY 2013
• no personnel changes
• 3 full -time employees
RESERVES AND OTHER
• $362,250 Property /General Liability Insurance
Council requested that backup information for budget workshops and special meetings,
particularly data pertaining to the Compensation Study, be provided earlier, in order to allow
sufficient time for Council review prior to the meeting.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:00 p.m.
Melissa Teal, CMC, Village Cleric