07-16-2014 VC B WS-M
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 16, 2014
Present: Darryl C. Aubrey, Sc.D., Mayor
Robert A. Gebbia, Vice Mayor
David B. Norris, President Pro Tem
William L. Manuel, Councilman
Doug Bush, Councilman
Jim Kelly, Village Manager
Melissa Teal, Village Clerk
ROLL CALL
Mayor Aubrey 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 Samia Janjua
was present.
PURPOSE OF THE MEETING
The purpose of the meeting was to review the FY 2014 Country Club and General Fund Budget
3rd Quarter Financials; FY 2015 Summary of Position Changes; FY 2015 proposed Country Club
Budget and proposed General Fund Budget; FY 2015-2019 Five-Year Capital Improvement Plan;
FY 2015 Capital Outlay; and FY 2015 budget recap, tentative millage rate, and date of first
budget public hearing.
COUNTRY CLUB CURRENT FINANCIAL CONDITIONS
Mr. Kelly reviewed the Country Club 3rd Quarter Financials including golf course memberships
and rounds played, as well as the year-to-date summary of revenues and expenses. Mr. Kelly
detailed FY 2014 end of year projections, and gave a comparison of the budgeted revenue versus
revenue received as of 6/30/2014.
$3,167,634 in revenues
$2,753,587 in expenses
Country Club revenues exceed expenses by $414,046 as of 6/30/14
Village Tavern Restaurant YTD shortfall of $75,052.53; inventory on hand of $18,860.26
Unrestricted Fund balance was $668,434 as of 9/30/2013
249 Golf Memberships as of 6/30/14 (excluding summer memberships); 13 memberships
or $15,951 less than FY 2013
34,804 rounds of play year-to-date, compared to 33,929 in FY 2013
$706,164 in Cart Rentals as of 6/30/14; $35,183 increase over FY 2013
$793,267 in Greens Fees as of 6/30/14; $57,255 increase over FY 2013
$235,495 in Driving Range proceeds; $4,891 increase over FY 2013
Non-member play is 59.50% of all rounds played
Mr. Kelly noted the Village Tavern Restaurant had $12,982.52 in non-recurring expenses this year,
including $7,997.52 for kitchen flooring and $4,985.00 for 10x20 shed.
Discussion ensued regarding FY 2014 Country Club year-end projections and the $173,566 net
loss projected for the current year, primarily due to $107,579.51 in unbudgeted projects. Mrs. Janjua
explained which projects have been expensed and noted total revenues and expenses could be
more accurately projected in late August. Mrs. Janjua advised that adjustments to the budget,
if necessary, would be made at year-end.
Minutes of Village Council Budget Workshop Session held July 16, 2014 Page 2 of 4
GENERAL FUND CURRENT FINANCIAL CONDITIONS
Mr. Kelly reviewed the General Fund 3rd Quarter Financials, FY 2014 Tax Distribution Schedule, and
C- FY 2014 end of year projections.
$16,446,838 in total revenues or 85.24% of the budget as of 6/30/14; $340,774 or 2.12%
• increase over FY 2013
• total department expenses were at $13,839,061 or 71.73% of the budget on 6/30/14
• $9,928,541.88 ad valorem revenue collected on 6/30/14 or 99.55% of the budgeted total
• preliminary financials indicated revenues exceed expenses by $2,607,777 on 6/30/14
• Unassigned Fund balance was $11,343,219 as of 9/30/13, or 61% of the FY 2014 Budget
Mr. Kelly reviewed the departments that are above the 75% benchmark for expenses.
Mrs. Janjua explained these reserve funds: Future Tax Relief ($442,833) and Appropriated Fund
Balance ($679,573).
It was noted that firefighter pay is a pending expense that will be incurred once an agreement is
reached with IAFF. Discussion ensued regarding salary increases pursuant to the PBA contract.
Mrs. Janjua stated that the amount budgeted for salaries was based on the compensation study;
however, salaries in the contract negotiated with the PBA were higher. It was requested that the
Finance Director provide documentation showing the budgeted rate of pay and current rate of pay
for these positions.
Discussion took place concerning the tax distribution schedule and expected revenues.
FY 2015 PROPOSED BUDGET - PERSONNEL CHANGES
Mr. Kelly reviewed position changes implemented temporarily in FY 2014 and position changes
to be effective with FY 2015 budget adoption.
• 151 full -time positions; 131 part-time positions; an overall addition of 2 full -time positions
and decrease of 2 part-time positions
• 1 full -time Accounting Clerk position added; part-time Finance intern position deleted
• 1 part-time Human Resources Administrative Coordinator position added
• 1 full -time Code Compliance Officer position reclassified to Zoning Compliance Officer
• 1 part-time Permit and Licensing Tech position changed to full -time
• 1 full -time Mechanic position changed to 1 full -time Supervisor - Fleet & Facilities
• 1 part-time Youth Art Instructor position reclassified to part-time Recreation Assistant
• 1 part-time Event Coordinator position reclassified to part-time Recreation Assistant
• 1 full -time Library Assistant position changed to Senior Library Assistant
• 1 part-time Library Clerk position deleted
• 1 part-time Service Personnel position changed to full -time Assistant Restaurant Mgr. position
• 1 full -time Banquet Event Coordinator position changed to part-time
• 2 part-time Snack Bar Attendant positions deleted
• Title Change: 1 full -time Human Resources Specialist position to Human Resources Coordinator
• 1 full -time Project & Procurement Manager position transferred from Public Works to Finance
• 1 full -time Sanitation Collector position deleted
• Title Change: 1 part-time CALEA Manager position to CALEA Manager /Cpt. Prof. Standards
• Title Change:I full -time Public Safety Aide position to Police Service Aide
• 1 full -time Public Safety Aide position reclassified to Crime Intelligence Analyst
• 1 part-time Golf Shop Attendant position added; unfunded in FY 2015, to be filled when needed
Minutes of Village Council Budget Workshop Session held July 16, 2014 Page 3 of 4
It was noted that FY 2014 building permit revenue is at only 50% of what was budgeted; further,
that positions were added in anticipation of increased revenue in this area. Mr. Kelly will
evaluate the fee schedule for plan review and permitting to see if adjustments are needed.
ti Discussion was held regarding additional positions, hours of service, and revenues in the Food
and Beverage Department.
Discussion ensued concerning temporary positions approved in April. Mr. Kelly expressed that
the positions would be evaluated at year -end.
FY 2015 COUNTRY CLUB PROPOSED BUDGET
Mr. Kelly reviewed the Country Club Organization Chart. Mr. Kelly detailed revenues and
expenses by department and category.
REVENUES
• Total revenues: $3,911,114
• Cart Rental and Walking Fees: $901,906 or 23.06% of the budget
• Greens Fees: $926,601 or 23.69% of the budget
• Food and Beverage: $800,000 or 20.45% of the budget
• Membership: $578,045 or 14.78% of the budget
• Driving Range: $304,548 or 7.79% of the budget
EXPENSES
• Personnel, Operating, Capital and Debt Service combined: $3,911,114, an increase of
3.21 % or $120,919 over FY 2014
• Administration: $85,300 or 2.18% of the budget
• Golf. $2,792,523 or 71.40% of the budget
• Food and Beverage: $958,111 or 24.50% of the budget
• Contingency projected at $19,371
• Personnel: $1,203,514 or 30.77% of the budget
• Operating: $2,094,269 or 53.55% of the budget
• Property and General Insurance: $55,809 or 1.43% of the budget
• Debt service: $538,151 or 13.76% of the budget
FY 2015 GENERAL FUND PROPOSED BUDGET
Mr. Kelly reviewed the General Fund Organization Chart, detailed revenues and expenses by
department /category, and discussed General Fund operating highlights and contingency.
REVENUES
• Total revenues: $20,061,081; an increase of $1,445,169 or 7.76% over FY 2014
• Ad valorem taxes: $11,618,343; 57.92% of the total budget
• Utility service taxes: $2,222,693; 11.08% of the total budget
• Charges for services $2,227,410; 11.10% of the total budget
EXPENSES
• Total expenses: $20,061,081; an increase of $1,445,169 or 7.76% over FY 2014
• Operating: $5,075,340
• Personnel: $14,858,962; an increase of $898,489 or 6.44% over FY 2014
• Council contingency: $115,779
• Capital contingency: $10,000
Minutes of Village Council Budget Workshop Session held July 16, 2014 Page 4 of 4
CIP FUND RECAP
Mr. Kelly summarized FY 2014 CIP activity and reported $549,873 remained in the CIP Fund.
�-- Mr. Kelly detailed the capital projects still outstanding for FY 2014. Mr. Kelly briefly reviewed
the Five -Year CIP Summary totaling $9,452,484, as well as the FY 2015 Capital Outlay by priority.
MILLAGE
Mr. Kelly detailed millage options for FY 2015 and proposed a tentative millage rate of 7.60 mils.
Mr. Kelly distributed a document comparing the Village's millage rate and total tax bill to eight
other local municipalities, which showed that the Village had the second lowest overall tax rate.
Discussion took place concerning fees for services.
Discussion ensued on the need for communication with residents. A suggestion was made to
hold a town hall meeting on budget and taxation.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:32 p.m.
Melissa Teal, CMC, Village Clerk