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IntroductionFY 2015 Proposed Budget Page 9 of 297 THE VILLAGE OF NORTH PALM BEACH PnUtn�� 501 U.S. Hwy 1, North Palm Beach, FL Telephone: (561) 841 -3380 • FAX (561) 848 -3344 July 24, 2014 The Honorable Mayor and Village Council Village of North Palm Beach North Palm Beach, Florida 33408 RE: Fiscal Year 2014/15 Annual Budget To Honorable Village Mayor and Council, I am pleased to share this Fiscal Year 2014 /15 Annual Budget for the Village of North Palm Beach. This budget reflects a plan to maintain and improve service to our Village residents for the coming fiscal year. The budget allocates scarce resources among departments providing financial resources that continue Village improvements. Department management has prepared an ambitious list of Village projects and operational improvements that follow guidelines established by Council's goals and objectives. This budget document identifies broad plans, operational responsibilities and financial guidance that will continue Village improvements throughout the coming year. Budget Format The Administration has taken steps to make this a user - friendly budget document. This budget provides a common source of meaningful information for many different users. The budget depicts our Village managerial and oversight responsibilities as outlined by the Administration's department organizational structure (organizational charts). This managerial structure assigns operating and oversight responsibilities among Village departmental areas. The budget's organization charts incorporate all staffing positions recommended by the Comprehensive Pay and Classification Plan for each Department (the Comprehensive Pay and Classification Plan is included under a separate tab within this budget document). Village Departments have included a detailed discussion of their individual goals, operational service, program improvements, and staffing and capital project expenditures for their respective areas. This document is intended to make our Village budget process more meaningful to officials, the Administration / Management staff and to our residents. With our ongoing efforts to maintain an open exchange of municipal information, understanding how Village resources are received and expended is of great importance. As part of our continuing effort to give access to all citizens, the Village Administration will place this budget document on the Village website (www.village- npb.org). Budget Goals The Village obtains a major portion of its annual general fund financial resources (57.92 %) from ad valorem property taxes. The Village does not assess many of the traditional taxes that other municipalities use for generating revenue. Rather, it primarily depends on ad valorem taxes to fund services. As a result, residents are not assessed additional taxes for utility, solid waste, storm water, or fire rescue. The preparation of this budget document continues to be challenging based on recent property tax reform legislation. However, improved property valuations and an improved state and national economy make the 2014/15 budget year the most promising in recent memory. The following is a brief synopsis of those legislative reform bills that have impacted the Village's budget over the past few years: HB 1B: Which was enacted in FY 2007/08 limits the authority of local governments to levy ad valorem taxes for the budget years 2007/08 and beyond. For the FY2008/09 budget and beyond, ad valorem taxes will be capped at the rolled back rate plus an adjustment based on the growth of the per capita personal income. • Amendment One: In FY 2007/08 this amendment increased the homestead exemption from $25,000 to $50,000 (for property values $50,000- $75,000), except for school district taxes. FY 2015 Proposed Budget Page 10 of 297 Amendment One also allows property owners to transfer (make portable) up to $500,000 of their Save Our Homes benefits to their next homestead when they move within the state. With respect to non - homestead property, Amendment One limits (caps) the annual increase in assessed value for non- homestead property to ten percent, except from school district taxes. The amendment also provides a $25,000 exemption for tangible personal property. The FY 2014/15 budget was developed collaboratively with assistance from a wide array of the Village supervision and staff. This collaborative effort allowed the Administration to consider past and current practices and procedures. In partnership with our Village staff, opportunities were identified for new and improved services, programs, and projects. During this review, the Administration held several discussions with members of our Village team to consider and develop enhanced services and projects for the coming fiscal year. Many of these projects are summarized in the "General Fund Expenses" section following this narrative. The details of our Department operating plans, projects and improvements may be found in each respective Department's budget narrative. Using a collaborative budget preparation approach, the Administration maintained a balanced focus between high quality resident service, operating effectiveness and fiscal responsibility. In setting goals during the budget planning process, our staff team maintained an awareness of balancing our many levels of municipal service with our valuable and scarce Village financial resources. In all cases, the Administration placed the highest priority on services that are most valued by our residents — with a commitment to provide these in an effective and efficient manner. Our budgetary emphasis centers on the Council's budgetary goals: 1. Protect the Financial Integrity of the Village a. Seek alternative sources of funds including grants. b. Seek to influence Florida legislature in areas of unfunded mandates, taxation, and revenue sharing. c. Continue to advance a business - friendly atmosphere in the Village and work with the Northern Chamber of Commerce to encourage new businesses and promote economic development. d. Actively pursue annexation opportunities. 2. Maintain a High Quality of Life in the Village a. Improve and maintain Village waterways as a unique Village asset. b. Maintain the highest quality of public safety services through national accreditation of its law enforcement component and through fire rescue level of service partnerships. c. Enhance communication with residents through mediums such as the Village Newsletter and website. d. Improve communication and response to the public; encourage suggestions from the public. e. Maintain service levels. f Update and maintain the Code of Ordinances to match contemporary requirements. 3. Maintain and improve all Recreational Facilities of the Village a. Maintain high level of appearance and condition of Village parks and recreational facilities, including the Country Club. b. Increase involvement in recreational activities by expanding programming for all age groups. c. Actively promote resident and non - resident use of the Country Club facilities. d. Enhance golf membership through increased member events. e. Enhance and promote pool, tennis, and park amenities. f Enhance and promote organized youth sport leagues and programs within the Village. 4. Enhance the Spirit and Participation of our Community a. Encourage resident participation in Village Boards, programs and events. b. Improve communication with businesses; encourage participation of businesses in Village events. c. Initiate activities that encourage Village volunteer service. FY 2015 Proposed Budget Page 11 of 297 5. Improve the Overall Appearance of the Village a. Continue improvement of code compliance and education with special emphasis towards the abatement of nuisance and abandoned properties. b. Support implementation of the Northlake Boulevard Overlay Zoning to bring about uniform beautification. c. Maintain uniformity of Village property design, colors and signage. d. Maintain high standards of overall appearance throughout the Village including commercial, residential, village - owned properties and roads. e. Identify areas needing attention. 6. Continuously Evaluate the Way We Work a. Conduct a department -by- department review of key work processes to determine what can be improved and implement improved procedures. b. Build a human resources capability that brings consistency in policies and procedures across all departments while remaining current, relevant, and compliant with federal, state, and local personnel and labor laws. 7. Implement the Pay for Performance System a. Evaluate and update procedures and establish appropriate performance measures. b. Develop metrics for evaluation of work processes for eventual integration in a balanced scorecard measurement system. Budget Objectives A general listing of our Village's annual budget Objectives are reflected in the following bullets. From a financial viewpoint, the Village's gross taxable property values have increased this year to $ 1,609,188,844. The following budget Objectives have been developed by the Administration and are reflected in this Budget: • Provide sufficient funding to maintain the Village infrastructure, roadways and facility maintenance. • Ensure that Village equipment is replaced in a timely and consistent fashion allowing staff to achieve and maintain high levels of quality and service. • Evaluate current staffing levels in all Village Departments to ensure the best and economically provided for community service. • Explore "outsourcing" opportunities of service related components within the respective departments as a cost savings measure. • Maintain a balanced budget while providing for needed non- recurring capital project and equipment expenditures. • Implement a program of improvements in employee compensation, benefits, personnel administration, and employee appraisals in accordance with discussions and agreements reached with Council. • Implement changes in both procurement and project management as recommended by staff and external auditors. The Village's Unassigned Fund balance is viewed by the Administration as a barometer of Village financial stability. Annual capital appropriations in this budget give the Council some latitude of choice or deferral in the event of prolonged or unforeseen economic duress. The Administration encourages establishing a minimum designation of Village General Fund Balance or core investments equal to approximately 35% to provide an important and meaningful financial balance that would be available in the event of unforeseen occurrences. The General Fund Unassigned Fund Balance at September 30, 2013 is $11.34 million, which represents 57% of the Fiscal Year 2014/15 General Fund Budget. Note: The actual fund balances for fiscal year 2013 -2014 will be available upon completion of the Village's annual audit in early 2015. The Village's primary investment objective, in priority order of investment activities, shall be: safety; principal liquidity; and the maximizing of investment income. The Village's investment portfolio will be broken into two primary categories, Operating and Core investments. The Village Administration will maintain local, liquid funds equal to a minimum of one - twelfth of the adopted budget. Administration will follow established investment strategies in accordance with the prevailing investment policy of the Village. FY 2015 Proposed Budget Page 12 of 297 The Administration has continued to refine and develop the Village's organizational structure to help shape and focus staff's responsiveness, accomplishments, training, supervision, and performance. Village employee compensation and benefits account for roughly 74.07% of the Village General Fund budget. Budget Hi2hli2hts: The FY 2014/15 budget reflects a renewed commitment and predictable funding for community infrastructure in areas such as roadways, neighborhood sidewalks and lighting, public buildings, and park facilities. The Community Development Department continues to meet the unending demands of our Village's business and neighborhood redevelopment. Community Development will continue to concentrate staff resources in areas of construction, permitting, licensing, and community planning while reinforcing improvements in customer service. The continuing analysis and pursuit of annexation opportunities, zoning and redevelopment enhancements and improvement of our business and development regulations is also a function of the Community Development Department. This Department will better align our Village with statutory development guidelines and help to meet steadily growing expectations of homeowners and developers. The Parks and Recreation Department continues to enhance programs to all age groups and at each of the six facilities. The newly redeveloped Anchorage Park will host a variety of events in this upcoming year to include: movies in the park; organized volleyball leagues; the Village's annual fishing tournament; and Heritage Day. The parks continue to be maintained by an outside service, which has been funded under the "contractual services" line. The new Veterans Park was completed in time for the Veterans Day observance. The park has also been configured so that it was the focal point for our Holiday celebrations in December. The Public Works Department is planning to continue oversight and maintenance of Village sanitation, infrastructure, streets, facilities, equipment, and roadways. This Department will focus on and play a major role in maintaining and expanding our focus on community appearance during the coming year. Roadway appearance will be emphasized with improved median and swale plantings. Public Works will also play a key role in our expanded emphasis on both project management and procurement. Additionally, Public Works will begin a three year project to reduce electrical costs to the Village. The Public Works Department will also continue to evaluate the way we collect our trash. In the last year, a total of 4 accidents with Jitneys have occurred and we need to develop a safer and more cost effective approach to trash collection. With the scheduled replacement of one of our large packer trucks, we see an opportunity to implement a new concept on a test basis that will reduce the risk of injury and ultimately be more cost effective. The Village of North Palm Beach was selected to be a pilot recycling program with the Solid Waste Authority (SWA). It has been very effective and will be expanded to other municipalities. The Police Department has continued improvements in neighborhood outreach, crime suppression and crime clearances. Communication between neighboring police departments has and will continue to enhance crime prevention, response and solution. For the second consecutive rating period (3 years), the Village's Police Department received the coveted CALEA National Accreditation for law enforcement agencies. Through diligent efforts of Council and staff, the Country Club finances have stabilized, from the standpoint of both golf and restaurant operations. Village Administration will continue to evaluate both financial and operational aspects of this facility with an aim toward delivering high quality service and an enjoyable recreation experience. Administration and Council commissioned a market analysis project that solicited input from residents on a variety of issues including the future of the County Club facility. Information from that research will help us create a vision for the future which we can integrate into planning for both programs and facility improvements at the clubhouse. The Administration continues with implementation of an optical records storage system, which will be an ongoing project. This system will be used by all Village operating departments (Community Development, FY 2015 Proposed Budget Page 13 of 297 Finance, Human Resources, and Country Club). Optical record storage systems are now widely used by governments and meet all State record storage requirements. This allows the Village to transition, over time, from paper records to optically stored records. Optical storage permits digital "look up" of any optical record "at will" through the convenience of a simple computer search. Optical storage systems are commonly used by many local governments and the cost is relatively modest when considering the time - savings and customer service improvements they offer. The Village's operating millage rate would increase to $7.6000 mils (The current millage rate is $68731 mils). This millage rate reflects an increase in tax revenues of $1,645,063 or 16.49% when compared to the current fiscal year. There is an increase of $1,564,189 or 7.76% in the Village's General Fund operating budget from that of this current year. The Village has no outstanding general obligation bond debt; therefore, the combined total millage rate of the Village would equal $7.6000 mils. Much of our Administration's budget deliberations reflect judgment "trade- offs" between increasing costs, desired service improvements and the need for capital items. Personnel Staffing and Benefits The preparation of this portion of the budget continues to be challenging based on continuing increases in the cost of employee compensation and benefits. The Village implemented the compensation plan completed by Evergreen Consultants in the FY 2013/2014 budget. The revised compensation plan increased the base of the employee compensation pay plan by 8.5 %. The Village will continue to apply more resources toward training staff, in order to make sure employees are equipped with the tools they need to offer exemplary service. We will continue emphasis on succession planning to encourage staff to develop their skills and capabilities in preparation for growth within the organization. There are isolated personnel changes recommended to provide for improvements to our organizational structure, and meet Council Goals. Retirement contribution levels for the General Employee "Defined Benefit" Retirement Plan will decrease from 20.82% to 19.54% in the coming year while employee contributions remain at 6 %. Retirement rates for Police & Fire will increase from 21.08% to 21.49% while employee contributions are planned to increase by .67% for the next three years, for a total of 4% by year 2016. The Village's required contribution for the "Defined Contribution" plan, available through ICMA -RC, is fixed at 15% with a required 3, 5, 10 or 15% contribution by the participating employee. FPE and Police & Fire pension matters are subject to the Village's collective bargaining negotiations. The collective bargaining agreement with the Fire union is still in negotiations. Debt Administration The Village, in FY 2009/10, paid -off its last remaining General Fund debt obligation and is now debt -free. This move was made possible through cost saving measures to include: workforce reduction strategies and the utilization of the General Fund Unassigned Fund Balance. In the Country Club Enterprise Fund, loan repayments are reflected as appropriate and have been provided for in this budget as required by each existing Village loan agreement. Budget Conclusion The FY 2014/15 Budget reflects continued improvement to citizen services, public safety, public facility maintenance, and emphasizes improved community appearance and financial stability. The budget plan promotes the administration of the Village in an effective, efficient manner. Most importantly, the budget provides necessary resources for the Village of North Palm Beach to maintain and further improve services to our 12,184 residents. FY 2015 Proposed Budget Page 14 of 297 Several operating and capital improvement project highlights are planned in the FY 2014/15 budget that supports the goal of continually improving our Village using a "Resident Service" focus. Many of these budget highlights are shown on tables in the following pages. In summary, the FY 2014/15 budget recommends the following operational funding: • Establish the Village Operating "Millage Rate" at 7.6000 mils The preparation of this Annual Budget document could not have been accomplished without the tireless collaboration of all Village departments and the notable assistance of our Finance Department staff. The Village Administration would also like to acknowledge and thank Village Council for their collective guidance, diligence, perseverance, and stewardship during this difficult budgetary process. With respect to the workforce reduction strategies, decisions made, were neither easy or without tremendous heartache. All available options were exhaustively explored with a steadfast goal to improve service delivery levels while reducing costs. Several budget workshop meetings have been scheduled during the months of July, August, and September where Council will meticulously review the substance and content of this Budget. All refinements to the Budget will be tracked and tabulated during those meetings. Those refinements will be incorporated in the "Final" FY 2014/2015 Annual Budget document. Respectfully submitted, James P. Kelly, Village Manager Village of North Palm Beach, FL. FY 2015 Proposed Budget Page 15 of 297 Village Attorney Village Clerk Community Development VILLAGE OF NORTH PALM BEACH Organizational Structure The Residents Village Council Village Manager Human Information Finance Resources Technology Library VILLAGE BOARDS -Audit Committee -Business Advisory -Construction Board of Adjustment -Golf Advisory -Library Advisory -Pension Boards -Planning Commission -Recreation Advisory -Waterways Board -Zoning Board of Adjustment Country Club Parks Recreation Law I I Fire Enforcement I I Rescue Public Works FY 2015 Proposed Budget Page 16 of 297 Village Officials and Administration Staff Village Council: Administrative Staff: Vice Mayor Robert A. Gebbia President Pro -Tem David B. Norris Village Manager ......... ..........................James P. Kelly Village Clerk ................ ........................Melissa Teal Village Attorney ............................. Leonard G. Rubin Chief of Police ............. ........................Richard Jenkins Director of Finance . ............................... Sarnia Janjua Director of Public Works ..........................Brian Moree Director of Community Development ........... Chuck Huff Council Member William L. Manuel Director of Library . ............................... Betty Sammis Director of Parks & Recreation .............. Mark Hodgkins Director of Human Resources ...................Loren Slaydon Director of Information Technology ....... Michael Applegate Director of Food & Beverage ...................Dave Naumann Director of Golf Operations (Interim) ......... Casey Mitchell Fire Chief ............... ...........................J.D. Armstrong Note of Annreciation We would like to thank all staff members for their contributions during the preparation of this budget document. Staff's demonstrated dedication and commitment to the Village ensures that the Village is "the Best Place to Live under the Sun. " FY 2015 Proposed Budget Page 17 of 297 Village Boards and Committees The Village Council of North Palm Beach appoints members of the community to boards, commissions, and committees to act in an advisory capacity to the Council, Manager, and Departments of the Village. The Village Council may create a board or committee in connection with any functions of the Village, or may create an ad hoc committee of limited duration. North Palm Beach board, commission, and committee members serve at the pleasure of the Village Council. Members of the Village Council attend meetings of Village boards, commissions, and committees on a rotation schedule in order to remain informed of Board business and concerns. Each appointed body has a specific scope of authority as provided by the Village Code of Ordinances and /or Florida Statutes. Boards, commissions, committees, and task forces may have administrative, managerial, quasi judicial, investigatory, and /or advisory powers dependent upon the enabling legislation. Boards, commissions, and committees are not responsible for day -to -day operations of the departments, operating policies of departments or the business decisions of the local government. Municipal advisory boards, commissions, and committees are comprised of dedicated citizens who volunteer their time and expertise to help their community. Boards, commissions, and committees are an integral part of citizen participation in local government and an important asset to the Village for proper growth and development and the long -term stability of our community. Our volunteers provide vital input in the decision - making process regarding present and future activities, programs, and policies. The Village of North Palm Beach has eleven (11) Boards, Commissions, and /or Committees: IJ Audit Committee IJ Business Advisory Board IJ Construction Board of Adjustment IJ Golf Advisory Board IJ Library Advisory Board IJ General Employees Pension Board IJ Police & Fire Pension Board IJ Planning Commission IJ Recreation Advisory Board IJ Waterways Board u Zoning Board of Adjustment Audit Committee The primary responsibility of the Audit Committee is to oversee and monitor the independent audits of the Village's financial statements from the selection of the independent auditors to the ¢ resolution of audit findings. The Audit Committee facilitates communication between the Village Manager's office, the independent auditors, and the Village Council, and serves as an advisor to the Village Council. The Audit Committee also has an annual responsibility to present a written report to the Village Council, which shows how the committee has discharged its duties and met its responsibilities. The written report also includes its findings as to the independent audits of the Village's financial statements. FY 2015 Proposed Budget Page 18 of 297 Business Advisory Board The Business Advisory Board serves as a liaison between the owners of businesses within the Village and the Village Council. The Business Advisory Board promotes business development and supports and sustains existing businesses by identifying business opportunities. Golf Advisory Board The primary responsibility of the Golf Advisory Board is to support and effectuate an outstanding golf experience at an affordable price through superior customer service, ` high quality playing conditions, and a wide variety of golf services tailored to members, residents and guests. The Golf Advisory Board has the duty to administer, review and interpret the Golf Course rules, regulations, policies and procedures, which include the following areas: member and resident comments and concerns; course procedures relating to starting times; shotgun events; tournament scheduling; charitable outings; special member events; and course and facilities condition. Library Advisory Board The Library Advisory Board serves in an advisory capacity to the Village Council and makes recommendations as to present and future activities, planning, programs, capital improvements and facilities and other matters relating to the overall function and operation of the North Palm Beach Library. Construction Board of Adjustment and Appeals The Construction Board of Adjustment and Appeals hears appeals of decisions and interpretations of the building official and considers variances of the technical codes. General Employees Pension Board The General Employees Pension Board performs all duties and enjoys all rights and powers vested by law or ordinance and is responsible for administering and effectuating the provisions of the law relating to the general employees retirement fund. Police and Fire Pension Board The Police and Fire Pension Board performs all duties and enjoys all rights and powers vested by law or ordinance and is responsible for administering and effectuating the provisions of the law relating to the retirement fund for police and fire employees. Planning Commission The Planning Commission is designated as the governmental entity to act as ' the "local planning agency" in accordance with F.S. 163. The Planning Commission holds public hearings and makes recommendations regarding amendments to the appearance plan, the issuance of certificates of appropriateness, reviews preliminary and final plats, and performs any duties which lawfully may be assigned to it by the Village Council. Prior to annexation and changes to zoning ordinances, the Village Council seeks the advice of the Planning Commission. FY 2015 Proposed Budget Page 19 of 297 improvements and facilities overall recreational activity waterways. Recreation Advisory Board The Recreation Advisory Board serves in an advisory capacity to the Village Council and makes recommendations as to present and future recreation activities, planning, recreation programs, capital and other matters relating to the of the Village other than its Waterways Board The mission of the Waterways Board is to ensure that the waterways located within the Village, and the marina located at Anchorage Park, are maintained, operated, and improved to provide the safest, most efficient, economical and environmentally -sound water transportation route in the Village and to provide sound use of Village waterways that serve business, commercial fisheries, and recreation. The Waterways Board is responsible for identifying, analyzing, addressing, and publicizing issues that affect the Village waterways, citizens, and users. The Waterways Board is charged with building community support through education of its members, prospective members, community groups, and relevant government officials. The Waterways Board recommends improvements and establishment of policies to the Village Council. Zoning Board of Adjustment and Appeal The Zoning Board of Adjustment hears and decides appeals and variances. The Zoning Board of Adjustment has the power to authorize variances from the terms of the ordinance as will not be contrary to the public interest when, owing to special conditions, a literal enforcement of the provisions of the ordinance would result in unnecessary and undue hardship. In order to authorize any variance from zoning ordinances or regulations, the Board must find that certain conditions exist, according to specific requirements set forth in the Code of Ordinances. The Zoning Board of Adjustment hears appeals when it is alleged that there is an error in any order, requirement, decision, or determination made by an administrative official in the enforcement of any zoning ordinance or regulation. FY 2015 Proposed Budget Page 20 of 297 Village Overview / Demographics Location The Village of North Palm Beach is located on the sunny east coast of Florida, 9 miles north of West Palm Beach in Palm Beach County. The land area of the Village is approximately 5.2 square miles. The Village has an abundant amount of waterfront property created by a num- ber of lakes, canals, and the Atlantic Ocean. With such assets as warm weather, sunshine, golf, ocean fishing, boating, sandy beaches and balmy breezes, the Village has much to offer en- thusiastic people who are raising families or are looking to retire. Village Government 7ahFa North Palm The Village of North Palm Beach was incorporated as a political subdivi- sion of the State of Florida in 1956. Village government operates under the Council- Manager form of government. The Village Council consists of five, non - partisan at -large council members, elected for two year, over- lapping terms, with a Mayor, Vice Mayor, and President Pro Tem selected each year by the council members. The Village Council meets in regular session twice each month for purposes of setting policy and carrying out the legislative matters of the Village. The Village Council appoints the Village Manager, Village Clerk, and the Village Attorney. The administrative day to day responsibilities are carried out through the Village Manager. The Village Manager acts as the Chief Administrative Officer of the Village and is responsible for directing all Village employ- ees other than those hired directly by the Village Council. The Village provides a full range of municipal services including Public Safety, Sanitation, Recreation, Library, Streets & Roads Maintenance, Public Improvements, Planning, Zoning & Building, and General Ad- ministrative Services. The Village also manages an enterprise operation which is the op- eration of its golf and Country Club. Population The Village is primarily a residential community with a population of approximately 13,000 which increases to approximately 20,000 during the winter months by residents who list their northern homes as their official place of residence. Residents are generally in the middle to upper income brackets. Demo -2raphics Per Capita Income .............. ............................... $45,563 Median Household Income .... ............................... $65,815 Median Age .............................. ...........................50.4 Infrastructure Public Safety Police Stations ................... ..............................1 Fire - Rescue Stations ............ ..............................1 Public Elementary Schools (County) .. ..............................1 Leisure Services: Tennis Courts ................... .............................12 Marina........................... ..............................1 Swimming Pool ............... ............................... 1 Parks............................ ............................... 4 Libraries........................ ............................... 1 Country Club: GolfCourse ..................... ..............................1 Driving Range .................. ..............................1 General Government Number of General Govt. Buildings .....................11 Public Works Miles of Streets .............. ............................... 36 Number of Street Lights .. ............................... 513 FY 2015 Proposed Budget Page 21 of 297 S I 1 ^ -r N�� S 8m LB T ti � 1 q �sw9 M q90 I ,II IIIIIII � L 4 � 9 a n� m C/) n 3, �o ( - - - -- --- ----- - - -- -, e �-- • WA'[ - __ -- - I m' P r-= — 0 71 6Y - _ I �, a •-t n..I L �.ys z-� A l a n :55y w .q •1E ` ✓ F f ------- - - - --I I q A� v� Y� g I ® anoo w"ol aid, I dl0V Q � Or NN Oj1Nd�yd Novae vaainla NV � 0 0 c'D a rC �z m� aA =b 0 �o z r� Village History North Palm Beach Area before Incorporation: 1892 Albert Sawer was given a warranty deed by the State of Florida with the stipulation that he improve, cultivate or sell the land before 1907. This land included Lake Park and North Palm Beach. Sawyer died in 1903 and willed the trust to his son, Albert. The 1907 deadline was extended to 1927. 1919 Albert Sawyer, Jr. sold the deed to Barton Peck in 1915 for $1140. Peck sold the deed to Harry & Mabel Kelsey for $100,000. Kelsey moved to Silver Beach and bought 14 miles of oceanfront and lakefront property between Miami & Jupiter, including 100,000 acres which later became Kelsey City/Lake Park and North Palm Beach. He purchased the Florida East Coast Canal, which is part of the Intracoastal Waterway, and operated it as a toll waterway with a toll chain across the intracoastal to stop boats and collect a fee. Dredg- ing became costly so Kelsey sold the waterway to the state. 1923 Kelsey City was incorporated in 1923 after Kelsey had laid out his carefully zoned town. Over 100 houses were built by him and these homes sold quickly. 1926 Kelsey, with the help of Paris Singer (Singer Island is named after him), built an 18 hole golf course and Winter Golf Club- house ( "The Winter Club ") on the land where the NPB Coun- try Club sits now. 1928 A hurricane with 130 mph winds caused Lake Okeechobee to overflow its banks and drown 3000 residents who lived near the lake. The hurricane wrenched the concrete Far- man River bridge from its mooring, demolished all but a few of the 100 Lake Park homes, uprooted and leveled Kelsey's 3 timber mills, and the entire Park Avenue shop- ping district, and ruined the vital credit rating of this once thriving town. "The Earman River Bridge" Many of the pioneer families who had purchased homes in Kelsey City fled North, abandoning their demolished homes, defaulting on their mortgage payments and causing the Kelsey City Bank to fail. In Florida, if property taxes went unpaid for 2 years, the state took title to that land. The unpaid taxes totaled $300 per lot and went up for sale. Kelsey, very disillusioned that his carefully planned town was in ruins, abandoned his first original home on the southwest corner of U.S. Highway One and Park Avenue and left Kelsey City. 1929- Sir Harry Oaks purchased the Winter Club and all the NPB 1930 land from Kelsey. Oaks added a south wing to the Winter Club. Oakes opened the golf course to winter visitors but closed it shortly after the stock market crash of 1929 -30. Oaks moved his family to Nassau and spent considerable time in London. FY 2015 Proposed Budget Page 23 of 297 1926- 1955 In the period of time from 1926 when Kelsey built the Winter Club and 1955, the land consisted of 7 square miles of sugar sand and scrub palmetto and fewer than 100 individ- uals living between Lake Park & Jupiter. The Tesdem Company, formed by Harry Oakes' Estate, held trusts of over 1000 lots in Lake Park and all the land in NPB including both sides of U.S. Highway One. "Bus from Palm Beach to the Winter Club" 1951 Harry Oaks' widow sold NPB land to Ralph Stolkin. Stol- kin used this land as collateral for a loan from John D. Mac - arthur. When Stolkin defaulted, MacArthur became sole owner of NPB and Lake Park. However, MacArthur was more interested in developing Palm Beach Gardens. 1955 Richard and Herbert Ross purchased the NPB properties from MacArthur's Bankers Land r for $5 million. Herbert Ross 1956 Before NPB was incorporated, the Ross brothers had these services in place: a utilities general manager, a Village Hall, s, a Village Council consisting of pioneer first council members: Charles Cunningham, our first Mayor, €' Richard Ross, Jay White, John Schwencke and John - D. MacArthur, a Fire and Police Chief, Anchorage Park Marina and ramp, 75 miles of sewer pipes, a bulkhead and dredged 20 canals and 3 lakes and a John Schwencke Village Manager. 08/13/1956... Together with Seward Mott Associates of Washington, D.C., a master plan was drawn and the Village of North Palm Beach was incorporated by Tallahassee. North Palm Beach after Incorporation: 1957 The first business to be issued an occupancy permit was the Pantry Pride / Food Fair at 101 U.S. Highway One. The first three permits for occu- pancy were issued to: 402 S. Anchorage Dr., 406 S. Anchorage Dr. & 410 S. Anchorage Dr. "402 S. Anchorage Dr." 1958 The developers donated ten acres of land to the school board and NPB Elementary opened for classes. The National Association of Home Builders out of Chicago, chose NPB as an award winning community. This was the first time a Florida town had won! The criteria used includ- ed excellence in: landscaping, planning, schools, recreation, zoning, shopping, variety of home styles and public services in place. The layout for our Village had superior planning, and credit for this award - winning plan goes to Richard & Herbert Ross. 1961 The Village purchased 145 acres around the NPB Country Club for $1,250,000 by issuing general obligation bonds. NPB voters approved spending $400,000 to build a new clubhouse and Olympic size swimming pool. These im- provements opened in 1963 and the bond was paid off in 1988. 1969 NPB Library, off Anchorage, was dedicated. Old Port Cove condominium complex with over 1,000 units was started. 1971 Twin City Mall opened at the corner of Northlake Blvd and U.S. Highway One as Palm Beach County's second en- closed shopping mall. This Mall was built onto the previous grocery store /strip mall completed in 1959. The Mall was demolished in the mid -1990s and has gradually been re- placed by a mid -sized strip mall anchored by Publix. FY 2015 Proposed Budget Page 24 of 297 1973 The University of N.C. chose NPB as an example of "one of the few well planned communities its size in the U. S.A." 1980 1.5 miles of oceanfront land, which lay within the NPB boundaries, was sold to Palm Beach County for $23 million. It is now called John D. MacArthur Beach State Park. George Delacorte, a NPB resident, donated $600,000 toward building our second Community Center. The Delacorte Rec- reation Building on Prosperity Farms Road was built with the stipulation that no fee ever be charged for use of the building. Harriet Nolan was elected as the first female NPB Council Member. 1981 Additional condominium complexes completed 2004 during these years. 1989 Judy Pierman elected as the first female Mayor of NPB. 1999 NPB Public Safety facility opened. At that time, it had the most technologically advanced equipment. 2006 Jack Nicklaus redesigned the Village's golf course and charged the Village $1 for his services. 2008 The North Palm Beach Police Department received the acclaimed National Accredita- tion through CALEA. M.1 Village residents can take pride in a Village that was first in Florida to be awarded the National Association of Home Builders award for excellence, a Village that still looks new, escalating real estate, local government, efficient public services, and no commercial buildings over 4 stories tall near the road on U.S. Highway One or Northlake Blvd. 2009 The old Seacoast Water Utility Plant at 603 Anchorage Drive was transformed into a beautiful waterfront recreational destination. The North Palm Beach Country Club Tennis Facility underwent an extensive renovation both on and off court. 2010 The Village of North Palm Beach Country Club took over food and beverage operations of the Country Club restaurant now known as the "Village Tavern." Cal FY 2015 Proposed Budget Page 25 of 297 2011 N« The Village Council reinvested money back into the infrastructure of the Village by replacing the concrete street markers and stop signs with new street poles and signs. The Country Club Pool has been completely renovated with new tile and Diamond Brite. The Pool Pump Room was also renovated replacing a deteriorated ceiling with new concrete and new fencing. The North Palm Beach Police Department completed the first three -year CALEA (Commission on Accreditation for Law Enforcement) re- accreditation process. 2012 The first runoff election for a Village Council seat in 37 years was held on March 27, 2012. Previously, the last runoff election was in 1975. 1,466 votes were cast in 1975 vs. 1,493 in 2012. 2013 The Veterans Memorial Park dedication and ceremony was held on Veterans Day, November 11, 2013. It is located adjacent to the Village Library and across from Village Hall. 2014 In January, a market analysis was conducted on various demographics and areas of the Village. Results indicated a 98% satisfaction rate with the overall quality of life in North Palm Beach. No election was held in March 2014 as the three incumbents were elected without opposition. The North Palm Beach Police Department completed the three-year CALEA Accreditation for Law (Commission on Enforcement) re- accreditation process. It received the award on July 26, 2014. The original National Accreditation from CALEA was awarded in 2008. The Community Development Department outgrew its space in Village Hall and relocated to 420 US Highway 1 to a larger, more user - friendly location. FY 2015 Proposed Budget Page 26 of 297 Village Departments General Fund: The General Fund is used to account for most of the day -to -day operations of the Village, which are financed from property taxes, fees, licenses, permits, fines and forfeitures, intergovernmental and other general revenue. Activities financed by the General Fund are briefly described below. Additional information can be found in the department summaries. General Government: The General Government provides administrative, legislative, financial and support services to all programs of the Village. The activities within the General Government are those that are legislative in nature, that are necessary to implement legislation, and that are supportive of activities within the Village. • The Council represents the citizens of the community by enacting legislation, approving the budget, determining the tax rate, and establishing policy that encourages, promotes, protects, and improves the welfare of the Village of North Palm Beach. • The Village Clerk's Office functions as the Department of Records, and serves to record and preserve all proceedings of the Village Council, administer Village elections, respond to public records requests, and provide administrative support to the Village Council and the Special Magistrate. • The Village Attorney provides effective and timely legal representation and advice to the Village Council and Village Administration. The Village Attorney's office represents the Village in legal matters from the point of inquiry to resolution and is committed to implementing the Village Council's policy of minimizing exposure and potential liability. • The Village Manager is responsible for the Village's day - to -day operation; for implementing the Village Council's policy and legislation; effectively and efficiently administrating all Village departments; appointing and supervising the Village employees; and approving and submitting the proposed annual budget to the Council. The Village Manager's Office is a central location for citizens to access information; request assistance; or notify the various departments of potential, existing, or new problems. • The Human Resources Department is responsible for coordinating the hiring of workers, developing benefit packages, reviewing injury reports, preparing safety reviews, examining workers' compensation insurance claims, and preparing the staffing /comprehensive pay plan for the budget. • The Finance Department is responsible for the accounting, budgeting and financial management of the Village. This includes financial statement preparation, grant management, payroll, accounts payable and utility billing functions. The Finance Department is responsible for developing the budget with assistance from the Village Manager and other departments and its subsequent submission to the Council. FY 2015 Proposed Budget Page 27 of 297 • The Information Technology Department is responsible for computer hardware and software applications used throughout the Village. They monitor the Village's internal networks and are responsible for ensuring they remain fully operational. This Division is also responsible for maintaining our website at www.villa.fze-npb.org. Police and Fire: The Public Safety services performed by the Village include: police, fire and emergency medical services. These services, provided by the Police and Fire Rescue Departments, are overseen by the Police Chief and Fire Chief respectively to ensure the highest level of public safety services. • The Police Department's primary responsibility is maintaining peace, reducing crime, protecting lives and property, and providing professional service to the community. • The Fire Rescue Department is primarily responsible for administrating, directing, coordinating, and supervising the Village's fire, medical and emergency management functions. These responsibilities involve planning, budgeting, emergency preparedness and response, fire suppression, advanced medical life support treatment and transportation, fire prevention, fire inspection and investigation, operational training, and public education. Public Works: The Public Works Department is responsible for maintaining the Village's infrastructure and all Village green space including roadways, parks, and medians. This includes maintaining irrigation systems, overlaying streets, installation and repair of sidewalks, and providing park maintenance. The public works department is comprised of the following divisions: • The Public Works Administration division provides general supervision, department level management, and administrative support to all divisions. • The Facility Services division provides maintenance and custodial services to Village buildings. • The Vehicle Maintenance division maintains the entire Village fleet comprised of approximately 120 vehicles, equipment, and rolling stock. • The Streets & Grounds Maintenance division is primarily responsible for maintaining and repairing the Village's roads, sidewalks, parks, and storm drain infrastructure. • The Sanitation division provides side -door garbage collection three days per week and trash & vegetation collection two days per week. Included in the trash & vegetation collection is one day of recycling collection. The division also provides recycling containers for the residents. FY 2015 Proposed Budget Page 28 of 297 Community Development: The Community Development Department is responsible for administrating, directing, coordinating, and supervising land development regulation functions and Village operations involving site planning, permitting, inspections, geographical information systems, and mapping. The Department is also responsible for enforcing the Village's Code of Ordinances. Leisure Services: The Parks and Recreation Department is responsible for Community events. They also provide Village recreational programs, operate the adult and youth sports leagues, provide senior programs and operate the Village's swimming pool and Tennis Center. The Village Public Library provides materials, services, and programs for community residents of all ages providing personal enrichment and enjoyment, and meeting educational needs. Enterprise Fund (Country Club): The Enterprise Fund is used to account for operations of the Village's golf and Country Club, where the costs of providing goods and services to the general public on a continuing basis are financed or recovered through user charges. The Country Club can be divided into three departments: Administration, Golf, and Food & Beverage. Administration: Administration is responsible for the accounting and auditing of the golf course, driving range, pro shop and food & beverage day - to -day operations. Legal services and the property & general liability allocation associated with the Enterprise Fund are provided for in the Administration section. The Country Club Contingency is also provided for in the Administration section. Gol : The Golf department can be divided into two divisions: Pro Shop and Maintenance. The Pro Shop's functions include providing for tee times and retail sales for golf related items; starter and player assistance; cart & bag assistance; private lessons; and organization of leagues and tournaments. The Golf Course Maintenance Division of the Golf Operation has been outsourced to an outside contractor who is responsible for all grounds and turf maintenance, irrigation and all chemical applications. The clubhouse maintenance is the responsibility of the Village. Food & Bevera Historically, the Country Club Restaurant has been outsourced to an outside contractor. In May 2010, the Village assumed the daily operations for the Restaurant. The Country Club Food & Beverage (F &B) Operation is a department of the North Palm Beach Country Club. F &B works cooperatively with the Golf, Tennis, and Pool areas to enhance tournaments, special events and the overall experience at the Club. FY 2015 Proposed Budget Page 29 of 297 Village of North Palm Beach Fiscal Year 2015 Budget at a Glance The budget is a plan (both financially and policy driven) for the accomplishment of goals and objectives identified as being necessary to the purpose of our local government. As a financial plan, the budget includes estimates of resources required, tax and non -tax revenues available to support implementation and the number of positions estimated to fulfill the levels of service set forth by policy decisions. In other words, the "budget" is the legal authorization to expend Vil- lage funds during the fiscal year. Budget Summary Tire total Pillage -+ride fiscal year 201412015 budget is shovit belois,: GE.NTI AL E-N-IERPRISE FIST) FLED COINMY (LI-B) IOT.0 ESTMATED REVENUFS: AD VALOREM TAXES $ 11,618,343 $ 11,618;343 UTILITY SERVICE TAKES 2,222,693 2,222.693 FRANCHISE FEES 1,_129;000 1,129,0{10 SALES & USE TAKES 268.668 268.668 LICDZES AND PERMITS 1,039.600 1,039.600 =RGOVERNMENTAL RE`�= 1.406,282 1,406.2821 CHARGES FOR SERVICES 21227,410 3,817,800 6,045,210 FINES AND FORFEITURES 77.335 77.335 INTEREST 40.250 8.410 48.660 NUSCELLANEOUS 30.500 84.904 115.404 TOTAL ESTMTEDRFL -F'N M S 20.060,081 S 3911114 S 23,971195 EXPENDITURES I EXPEASES: GF4\FK LGOti'ERNhIEN7 $ 2,525,730 $ 2525730 POLICE AND FIRE 8,7007461 81700,461 PUBLIC WORKS 4,359,971 4,359,971 CONMINITY DEIIELOPNENT 1,187.888 1,187.888 PARKS AND REM411OV 2004.599 2,004,599 LIBRARY 791,679 791.679 NON DEPARThIENTAI. 373.974 55.809 429.783 GOLF 2,25437-2 2,254;37? FOOD & BEVERAGE 958,111 958.111 COUVIRY CLUB ADNDNISTRATION 85.300 85.300 OPERATING TRANSFERS OUT OTHER 115.779 19,371 135.150 DEBT SERVICE 538,151 538;151 I01 -JLL ESTBUTED ESTE-NDMTJ —S $ 20,060,081 is 3,911,114 IS 2:4971.195 rare of 57.6000 mils ',Vole: General f inid Budget is based ail a grillage $25.000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 155 150 145 140 135 130 125 120 FY 2015 vs FY 2014 Total Budget $23,971,195 General Fund Enterprise Fund Enterprise Fund Budgeted Positions Full 'Time a FY 2014 FY 2015 ®General Fund ■Enterprise Fund feral Fund B4 X33 ��1 J ©2o 1a Part Time 82015 FY 2015 Proposed Budget Page 30 of 297 Budget Preparation Process The budget process incorporates the development, implementation and evaluation of a plan for the provision of services and capital assets. The budget is to serve as a management and control tool by measuring actual performance against budget standards, focus attention on future operations and plans and improve communication of goals, objectives and plans. The Village's budget process relies on a timetable of tasks and the planning of steps and meetings that must be maintained in order to comply with state requirements for Truth in Millage (TRIM) as well as internal requirements for sound planning and fiscal responsibility. The budget process begins with setting a calendar of tasks for the coming months that meets all requirements and is approved by the Village Council. Below is the Village's Budget Calendar prepared for the Fiscal Year 2014/2015 budget preparation process: Task Date Department capital item requests and 5 year capital plan due Aril 25 Village Council sets village-wide goals & objectives May 7 Finance sends budget packages to departments May 9 Department organization charts and narratives (including goals, objectives, performance measures & accomplishments) due May 30 Department operating requests & revenue projections due June 6 Finance compiles department packages June 9 -20 Departmental budget review meetings with Village Manager June 23 -27 Property appraiser provides certification of taxable values July 1 Finance compiles proposed budget for presentation to Village Manager for recommendation to Village Council June 30 -July 4 Budget Workshop — Country Club and General Fund Overview July 16 Task Date Village Manager presents proposed budget to Village Council • Village Council sets Tentative Millage Rate July 24 • Village submits TRIM documents Budget Workshops Jul 30-Aug 27 First public hearing on proposed budget: • Announce percentage by which computed millage exceeds roll back rate Sept. 11 • Adopt tentative budget • Amendments (if any) • Re- compute proposed millage (if amended) Advertise notice of tax increase and proposed operating Sept. 21 budget within 15 days of 1" Public Hearin Second public hearing on proposed budget and approval of ordinances for final adoption of ad valorem millage rate and Sept. 25 budget 2 -5 days after advertisement Certification of "TRIM" compliance signed by Village Manager and submitted to Tax Collector, Property Appraiser October 1st & Department of Revenue Budget document available for public distribution October 1st Through the budget process, an annual budget is developed that integrates priorities and short and long -term goals as established by Council in order to meet the needs and goals of the Village and establish annual resource allocations. These resource decisions address desired quality of service; staffing levels; technology needs, equipment and capital improvements; and programs considered to be priorities by the Village Council. The Village's fiscal year starts on October 1 and runs through September 30. FY 2015 Proposed Budget Page 31 of 297 The Village's Budget Process can be divided into five phases • Policy & Strategy Phase • Assessment Phase • Development Phase • Review Phase • Adoption Phase Each phase is described below. Policy & Strate2v Phase Setting priorities for the Village is one of the most important responsibilities of Village Council and these goals and directives set the tone for the development of the budget. In this phase, Village Council and staff has the opportunity to reassess the goals and objectives within the strategic framework in order to provide direction to the resource allocation and budgetary decision - making process. Annually, the service priorities and objectives for each fiscal year are evaluated and the long -term financial plan is monitored and updated in order to set direction for the development of the budget that is properly aligned with the broad goals and strategic directives. This includes an assessment of services, capital needs, issues and challenges, opportunities as well as a review of economic trends and financial forecasts. Assessment Phase As part of the budget process, departments evaluate performance towards meeting current and past goals and objectives and assess current conditions, programs and needs. Various financial analyses, as well as productivity and staffing analyses, are performed. Programs and services are also reviewed thoroughly to assess their value and the subsequent priority to the residents of the Village. These internal analyses are necessary to determine service needs and delivery improvements, cost savings and opportunities, and required staffing levels. Development Phase Each department's budget package includes forms and instructions to aid in the preparation of their budget requests. The forms contain two prior years' actual data, the current year estimated actual, current year budget, requested amount for the coming year. The departments describe the expenditures on the line item justification form which follows the departmental breakdown of the line items. In addition to requesting dollars, the departments must submit departmental objectives that provide a strategy linked to the Village's overall goals and policy agenda. The departments must also provide current year achievements and organization charts that identify changes from the previous year. The above mentioned items are included in both the proposed and final budget documents. In a separate package, the departments submit requests for necessary capital outlay and capital improvement projects. Each department submits requests in order of priority. These include cost and description, as well as justification for the need. Capital Improvement Projects are forecast in the 5 -year Capital Improvement Program (CIP) document. This allows the need to be known in advance. The department must re- submit and re justify the need for the project during each subsequent budget process. The projects include cost and description. Review Phase The Village Manager and Finance Director review the departmental requests, meet with the departments, and fund what is deemed necessary. FY 2015 Proposed Budget Page 32 of 297 Public Adoption Phase In July, the Village Manager presents a proposed budget for the fiscal year commencing October I to the Village Council for consideration and further input. This proposal includes all proposed operating and capital expenditures and the means of financing it. Council reviews the budget and conducts budget workshops to provide an opportunity for Village management and departments to offer additional information. Changes are made to the budget as per the Council's instructions. The proposed budget is then revised incorporating these changes. The budget is adopted in compliance with requirements found in the Village's Charter as well as with the State Statute known as TRIM (truth in millage). The law includes strict requirements and a timetable guide for noticing budget hearings and ensuring residents have an opportunity to be heard before final action takes place. TRIM Compliance Florida Department of Revenue sets a schedule for local governments to follow in adopting tax roll information in accordance with the county property appraiser offices. Accordingly, there are two public hearings scheduled to openly discuss the budget, millage rate and reason for any tax increase. By July Ist each year the Property Appraiser certifies the tax rolls for the Village on form DR -420. This roll is used in formulating the proposed millage rate for the coming year. Thereafter the following timetable must be adhered to: • Within 35 days the Village Manager must have submitted the proposed budget to Council and delivered the DR -420 and DR -420 MM -P to the Property Appraiser (August 5th) • Between 65 -80 days from date of certification the Village must hold a tentative budget and millage hearing. This hearing cannot be held sooner than (10) days following the mailing of notices by the Property Appraiser (August 24th) • Within fifteen (15) days of the tentative budget and millage hearing the Village must advertise a final hearing on the budget. • Not less than two (2) or more than five (5) days after the advertisement, a final hearing adopting the budget and millage is held. • Upon completion of the public hearings and prior to October Ist, a final operating budget is legally enacted through the passage of an ordinance. • Within three (3) days after adoption, the Village must certify the adopted millage to the Property Appraiser and Tax Collector. • Within three (3) days after receipt of final value, as discussed below, the Finance Director completes form DR- 422 and returns to the Property Appraiser. • Within thirty (30) days of final millage and budget adoption, the Village must certify compliance with Section 2000.065 and 200.068, F. S., to the Department of Revenue. FY 2015 Proposed Budget Page 33 of 297 Implementing, Monitoring & Amendment Phase - Budgetary Control Upon the final adoption of the budget, staff implements the new fiscal year budget and begins the process of continuous monitoring and ensuring budgetary control throughout the fiscal year. The objective of budgetary controls is to ensure compliance with legal provisions embodied in the annual budget approved by the Village Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. Reports are generated monthly to keep Department Directors informed and to monitor revenues and expenditures in order to achieve effective control over their departmental budgets. Department Directors are accountable for over /under expenditures. The Village maintains an encumbrance accounting system as one technique of accomplishing budgetary control. All expenditures, other than personal services, are controlled by a procurement system which encumbers purchase orders against the budget prior to issuance to vendors. Purchase orders are not issued until appropriations are made available. All appropriations lapse at year end; however, encumbrances specifically designated to be carried over to the subsequent year are re- appropriated in the following year. During ongoing monitoring, staff may note that corrective action is needed to help accomplish planned or needed programs and activities and request budget amendments. Changes or amendments to the budgeted amounts at the fund level must be approved by the Village Council; however, the budget may be amended in the following three ways: 1. A transfer over $10,000 may be authorized only by ordinance /resolution adopted by Council. 2. Transfers up to $10,000 can be made with authorization by Village Manager. 3. A transfer from the Village's Unassigned Fund Balance Account or the Council Contingency Account, which may be authorized only by ordinance /resolution adopted by the Council. All budget amendments, once approved, are processed by the Finance Department. FY 2015 Proposed Budget Page 34 of 297 Governmental Funds General Fund Budgetary Fund Major Fund Special Revenue Fund Village of North Palm Beach Fund Structure Capital Projects Fund Northlake Blvd Grant Recreation Grant Public Safety Grant On- Behalf Pension Fiduciary Funds Proprietary Fund (Enterprise Fund) Country Club Agency Trust Fund Fund Fund -Budgetary Fund -Major Fund Northlake Boulevard I General Employees Task Force Pension Manatee Protection I �-I Police & Fire Pension Volunteer Firefighter Pension Only two funds are budgetary funds (General Fund & Country Club Fund) FY 2015 Proposed Budget Page 35 of 297 Basis of Presentation, Basis of Budgeting and Budgetary Accounting Basis of Presentation The accounts and the budget of the Village are organized and operated on the basis of funds and account groups. To better understand the budget, a basic understanding of this financial structure is required. A fund is an independent fiscal and accounting entity with a self - balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance- related legal and contractual provisions. Account groups are a reporting requirement to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The funds are classified for reporting purposes into three basic fund types; governmental, proprietary and fiduciary funds. The purpose of the Village's funds and account groups are described in the following paragraphs. Governmental Fund Types: Governmental funds are those through which general governmental functions of the Village are financed. The acquisition, use, and balances of the Village's expendable financial resources and the related liabilities (except those accounted for in Proprietary Funds) are accounted for through Governmental Funds. The following are the Village's Governmental Fund types: • General Fund — The General Fund is the main operating fund of the Village. This fund is used to account for all financial resources except those required to be accounted for in another fund. All general property taxes, fines, various permits, property rentals and certain intergovernmental revenues are recorded in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. There can only be one General Fund. • Special Revenue Funds — Special Revenue Funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. • Capital Projects Funds — Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities or improvements (other than those financed by proprietary funds) being financed from general long -term debt, grants, or transfers from other funds. In the Governmental Fund Type category, the Village adopts an annual operating budget and appropriates funds for the General Fund only. The Capital Projects Fund and the Special Revenue Funds involve multi -year projects so annual budgets are not adopted for these funds. Instead, appropriations in these funds remain open and carry over to succeeding years until planned expenditures are made, or until they are amended or cancelled. Proprietary Fund Types: Proprietary funds distinguish between operating and non - operating revenues and expenses, and the principal revenues are derived from charges to customers for sales and services. The Village's sole proprietary activity is the operation of a golf and country club, which is an enterprise fund. FY 2015 Proposed Budget Page 36 of 297 • Enterprise Funds — Enterprise Funds account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. The Village adopts a non - appropriated operating budget for its Country Club Fund at the same time it adopts the General Fund Budget. Fiduciary Fund Types: Fiduciary Fund types are used to account for assets held by the Village in a trustee capacity or as an agent for individuals, private organizations, other governments and /or other funds. The funds in this category are the Village's Pension Trust Funds and Agency Funds. Annual budgets are not prepared for these fund types. • Trust Funds — To account for assets held by the Village in a trustee capacity. The pension trust funds are accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. • Agency Funds — To account for assets held by the Village. The Village retains no equity interest in these funds. Account Groups: Account groups are not funds since they don't reflect available financial resources and related liabilities. Instead, they are used to establish accounting control and accountability for the Village's general fixed assets and general long -term debt. The following is a description of the account groups of the Village: • General Fixed Assets - To account for all fixed assets of the Village, except fixed assets of Proprietary Funds. • General Long -Term Debt — To account for all the outstanding principal balances of any general and special obligation bonds or notes, capitalized leases, installment purchases, and compensated absences of the Village, except long -term obligations of Proprietary Funds. Basis of Budtetim The basis of budgeting includes the following two elements (measurement focus and basis of accounting) that measure and account for transactions the Village reports in the respective fund's budget and operating statement. Measurement Focus Measurement Focus refers to what transactions are recorded. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. There are two different measurement focuses that are used in the preparation of financial statements for governments: FY 2015 Proposed Budget Page 37 of 297 • Economic Resources Measurement Focus — This measurement focus is used in the preparation of the government -wide financial statements and in the fund financial statements of proprietary funds. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on their statement of net assets and the reported fund equities (total reported assets less total reported liabilities) provide an indication of the economic net worth of the funds. Operating statements of these funds report increases (revenue) and decreases (expenses) in total economic net worth. • Current Financial Resources Measurement Focus — This measurement focus is used in the fund financial statements of governmental funds. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Accordingly, the reported undesignated fund balances (net current assets) are considered a measure of available, spendable or appropriable resources. Operating statements of these funds present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Account Groups are concerned only with the measurement of financial position. They are not involved with the measurement of results of operations. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, Ad valorem taxes and charges for services are considered to be available if they are collected within 60 days of the end of the current fiscal period, provided that amounts received pertain to billings through the fiscal year just ended. Intergovernmental revenues, which include state revenue sharing allotments, local government one -half cent sales tax, and county shared revenue, among other sources, are recorded in accordance with their legal or contractual requirements if collected in the current period or within 60 days after year -end. Interest is recorded when earned. Licenses and permits, fines and forfeitures and all other revenue items are considered to be measurable and available only when cash is received. Business Tax Receipt revenues collected in advance of periods to which they relate are recorded as deferred revenues. Expenditures are recorded when a related fund liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. FY 2015 Proposed Budget Page 38 of 297 The proprietary fund and pension trust funds are accounted for using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Membership fees of the proprietary fund that are collected in advance of the period to which they apply are recorded as deferred revenue. The table below summarizes the measurement focus and basis of accounting for each reporting element and type of fund mentioned above: Measurement Focus and Basis of Accounting for Financial Statements Basis of Financial Statements Measurement Focus Accounting Government -wide Financial Economic Resources Accrual Statements Governmental Funds Financial Current Financial Modified Accrual Statements Resources Proprietary Funds Financial Economic Resources Accrual Statements Fiduciary Funds Financial Economic Resources Accrual Statements The Comprehensive Annual Financial Report (CAFR) shows the status of the Village's finances on the basis of "Generally Accepted Accounting Principles" (GAAP). In most cases, this conforms to the way the Village prepares its budget, with the following exceptions: • Depreciation expense is not a budgeted expense. • Expenditures for capitalizable fixed assets are budgeted as expenses. • Compensated absences are not included in the budget. • Expenditures for principal payments on outstanding debt are budgeted as expenses. Budgetary Accounting State of Florida statutes require that all municipal governments establish budgetary systems and approve balanced annual operating budgets. The Council annually adopts an operating budget and appropriates funds for the General Fund. The Village also adopts a non - appropriated operating budget for the enterprise fund (Country Club) at the same time it adopts the General Fund Budget. The procedures for establishing budgetary data are as follows: • In July of each year, the Village Manager submits a proposed operating budget to the Council for the next fiscal year commencing the following October 1st. The proposed budget includes expenditures and the means of financing them. The Village also advises the County Property Appraiser of the proposed millage rate and the date, time and place of the public hearing for budget acceptance. • Two Public hearings are conducted to obtain taxpayer comments. Upon completion of the public hearings and prior to October 1st, a final operating budget is legally enacted through the passage of an ordinance. Estimated beginning fund balances are considered in the budgetary process. FY 2015 Proposed Budget Page 39 of 297 Financial Policies Operating Budget Policies: • The Village will comply with all Federal, State or local legal requirements pertaining to the operating budget. A balanced budget is achieved when the amounts available from taxation and other sources, including amounts carried over from prior fiscal years, equals the total appropriations for expenditures and reserves. • The Village will employ a structured budget preparation and formulation process that will ensure adequate citizen input and participation. • The Village will employ a structured expenditure and revenue forecasting system to allow for effective financial planning. • Essential services will receive first priority for funding. The Village will attempt to maintain current service levels for all essential services. • The Village will identify low priority services for reduction or elimination, if necessary, before essential services. • The Village will consider the establishment of user fees as an alternative to service reductions or elimination. • The Village will pay for all current expenditures with current revenues. • The Village will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' expenses. • The budget will provide for adequate maintenance and repair of capital plant and equipment and for their orderly replacement. • The budget will provide sufficient funding to cover annual debt retirement costs. • The budget will provide for adequate funding of all pension plans, as determined by the Village's actuary. • The Village will maintain a budgetary control system to ensure adherence to the budget and will use a budget /encumbrance control system to ensure proper budgetary control. • The Village administration will prepare regular reports comparing actual revenues and expenditures to budgeted amounts. • Where possible, the Village will integrate service levels and performance measures within the budget. • The goal of the enterprise fund operation is to be self - supporting and to pay administrative and other appropriate service charges to the General Fund for administrative support. • The total number of employment positions approved in the annual operating budget may not be exceeded without prior approval of the Village Council. FY 2015 Proposed Budget Page 40 of 297 • The Village will annually seek the Distinguished Budget Presentation Award offered by the Government Finance Officers Association (GFOA) Fund Balance and Reserve Policies: • The Village will establish an adequate fund balance in the General Fund to indicate that it is in sound financial condition. This reserve will be maintained at a minimum level of 35% of current year general fund budgeted expenditures, unless otherwise determined by the Village Council. • Fund Balance will only be used for expenditures that are either non - recurring in nature or that have a benefit period longer than one operating period, unless otherwise determined by the Village Council. Village Council approval is necessary for this type of expenditure. • Maintain a contingency reserve in the General Fund and the Country Club Fund to address unexpected needs that occur throughout the year, subject to approval by the Village Council. Revenue Policies: • The Village will take active measures to encourage economic development, thereby developing a diversified and stable revenue system to shelter it from short-run fluctuations in any one revenue source. • The Village will establish user charges and fees at a level closely related to the full cost of providing the services (i.e. direct, indirect and capital costs); taking into consideration similar charges /fees being levied by other organizations. • The Village will aggressively seek Federal and State grant and capital improvement funds and evaluate future local fiscal impact. Debt Policy: • The Village Charter and the Constitution of the State of Florida do not provide for a legal debt limit. However, In making or providing of capital improvements, The Village shall not incur a general obligation debt requiring the full faith and credit and taxing power of the Village that exceeds five (5 %) of the property tax base of the Village. The Village has no general obligation debt outstanding. • The Village will analyze the impact of debt service on total annual fixed costs before any long -term debt is issued. • Any loan obligation above $500,000 shall require review and comment by the Village's Audit Committee prior to Council Action. • The Village will not use proceeds from long -term debt for current, on -going operations. Long -term borrowing will be confined to capital improvements too large to be financed from current revenues. • The Village will utilize the form of borrowing that is most cost - effective, including not just interest expense but all costs, including up front costs, administrative and legal expenses, prepayment penalties, and reserve requirements. FY 2015 Proposed Budget Page 41 of 297 Cash Management /Investment Policies: • The Village will deposit funds only in financial institutions which are qualified public depositories pursuant to Sate of Florida Statutes, Chapter 280, and "Florida Security for Public Deposits Acts." • The Village will insure timely deposit of all collected revenues. • The Village will maintain a prudent cash management and investment program in order to meet daily cash requirements. • The Village will follow its adopted investment policy when handling public funds. • The Village will pool cash from each eligible fund for investment purposes. Accounting, Auditing & Financial Reporting Policies: • An independent audit will be performed annually, including the issuance of a management letter. • The Village administration will promptly evaluate the audit management letter recommendations, determine the proper actions in response to these recommendations and complete, within established time frames, all actions that correct or otherwise resolve the matters included in the management letter. • The Village will produce financial reports in accordance with Generally Accepted Accounting Principles (GAAP). • The Village Council will be provided monthly with budget reports comparing actual versus budgeted revenue and expense activity. • The Village will annually seek the Certificate of Achievement for Excellence in Financial Reporting award offered by the Government Finance Officers Association (GFOA). • The Village will maintain the highest level of accounting practices consistent with generally accepted accounting principles (GAAP) promulgated by the Government Accounting Standards Board (GASB). Capital Improvement Plan Policies: • The Village will adopt the first year of a multi -year plan for capital improvements, update it annually and make every attempt to complete all capital improvements in accordance with the plan. • The Village will coordinate the development of the CIP budget with the development of the operating budget to ensure future operating expenditures and revenues associated with new capital improvements will be projected and incorporated into the current and future operating budgets. • The Village will maintain its physical assets at a level adequate to protect the Village's capital investment and minimize future maintenance and replacement costs. • In making or providing of capital improvements, The Village shall not incur a general obligation debt requiring the full faith and credit and taxing power of the Village that exceeds five (5 %) of the property tax base of the Village. FY 2015 Proposed Budget Page 42 of 297 Debt Administration The Village has limited its borrowing to prudent levels that are able to be covered through existing revenue and cash flow projections. The Village utilizes debt financing on large expenditures for capital projects. When establishing debt, there are a number of factors to be considered in the process. These factors include: • the long -term needs of the Village • the amount of resources available to repay the debt There are a few ways for the Village to achieve debt financing. The Council considers the asset's useful life and current economic conditions to determine the appropriate financing instrument. Some financing options available to the Village include: • bank loan • lease agreements (capital lease or operating lease) • issue special revenue bonds (pledged by a specific revenue source and limited by available revenue) • issue general obligation bonds (require voter referendum approval) The Village Charter and the Constitution of the State of Florida do not provide for a legal debt limit. However, in regards to capital improvements, the Village has adopted a policy to limit general obligation debt (debt pledging payment from ad valorem taxes which must be approved by referendum) to an amount that does not exceed five (5 %) percent of the property tax base of the Village. For Fiscal Year 2014 -2015 this would amount to $80.45 million (tax base of $1.6 billion) in available general obligation debt. The Village has no outstanding General Obligation debt. The Village's outstanding debt (principal only) as of September 30, 2013 consists of the following: General Fund: The Village's General Fund is debt -free! Country Club: Promissory Note $ 3,357,875 Capital Lease 396,055 Total Country Club $ 3,753,930 Total Debt $3,753,930 A brief description of each outstanding debt instrument and its annual debt service requirement to maturity is listed below: General Fund: The Village's General Fund is debt free! Country Club: The Country Club (Proprietary Fund) has one loan and one capital lease outstanding as of September 30, 2013. FY 2015 Proposed Budget Page 43 of 297 Promissory Note: This note was to finance certain capital expenditures relating to the municipal golf course and country club. Country Club revenues secure the loan. Annual debt service requirements to maturity are as follows: Year Endin2 Princi al Interest Total 2014 260,934 137,225 398,159 2015 271,920 126,239 398,159 2016 283,040 115,119 398,159 2017 295,287 102,872 398,159 2018 307,719 90,440 398,159 2019 -2023 1,743,997 246,798 1,990,795 2024 194,978 4,074 199,052 $3,357,875 $822,767 $4,180,642 Capital Lease: The Country Club also has a capital lease agreement for the purpose of financing the lease - purchase of equipment for the Country Club. Annual debt service requirements to maturity are as follows: Year Endin2 Princi al Interest Total 2014 121,584 14,078 135,660 2015 126,705 8,957 135,662 2016 147,766 1,799 149,565 $396,055 $24,834 $420,889 FY 2015 Proposed Budget Page 44 of 297 Fund Balance Overview Fund Balance is generally defined as the difference between a fund's assets and liabilities. Changes in fund balance are based on the difference between revenues and expenditures for a given fiscal year. An adequate fund balance is necessary for numerous reasons, such as to have funds available in cases of emergencies, unexpected events, cushion economic cycles and special projects. It is also used to maintain or enhance the Village's financial position and related bond ratings, to provide cash for operations prior to receipt of revenues and to maintain investment earnings. Over past years, the Village has been able to generate healthy reserves through growth management, strategic planning, and cost containment measures. The goal of the Village has been to use surplus reserves in ways that positively affect its financial plan by reducing long -term obligations. The Village does not use surpluses to offset the subsequent year's budget, unless otherwise determined by the Village Council. The Governmental Accounting Standards Board (GASB) released Statement 54 — "Fund Balance Reporting and Governmental Fund Type Definitions" on March 11, 2009. The Village implemented GASB 54 in its fiscal year 2011 annual financial reports. This statement impacts only governmental funds; it has no impact on proprietary (enterprise) funds or fiduciary funds. The requirements of this statement are intended to improve financial reporting by providing fund balance categories and classifications that will be more easily understood and applied. The categories are more clearly defined to make the nature and extent of the constraints placed on a government's fund balance more transparent by isolating that portion of fund balance that is unavailable to support the following year's budget. GASB 54 eliminates the previous categories of "Reserved" and "Unreserved" for all Governmental Fund balances, and replaces these with five new reporting categories. These categories create a hierarchy of constraints that control how specific amounts can be spent. The five new reporting categories are as follows: • Non - spendable — amounts that are not in a spendable form or are required to be maintained intact (inventories, prepaid items, interfund loans) • Restricted — amounts constrained to specific purposes by their providers (debt covenants, grant proceeds) • Committed — amounts constrained to specific purposes by the government itself (disaster recovery, rate stabilization, insurance, encumbrances) • Assigned — amounts a government intends to issue for a specific purpose • Unassigned — amounts that are available for any purpose Fund Balance tables for the General Fund and the Enterprise Fund (two major/budgetary funds) are on the following pages. These tables represent the Village's actual fund balances as of October 01, 2013. The actual fund balances for fiscal year 2013 -14 will be available upon completion of the Village's annual audit in early 2015. The reserves shown in these tables are based on conservative revenue estimates and one hundred percent (100 %) of the budgeted expenditures being expended. FY 2015 Proposed Budget Page 45 of 297 General Fund: The fund balance of the general fund, one of the governmental funds, is of significance because it is the primary fund financing most functions of the Village. It is used by rating agencies as a measure of the financial strength of the government. Actual Actual Actual Actual Actual Actual Budget Budget FY2008 FY 2009 FY2010 FY2011 FY 2012 FY 2013 FY 2014 FY2015 Beginning Balance $ 9,125,550 $ 9,040,852 $ 10,621,331 $ 11,052,909 $ 11,700,667 $ 12,197,584 $ 12,705,382 $ 12,705,382 Revenues Taxes 15,424,638 15,680,749 14,784,908 14,090,965 13,618,635 13,601,784 13,439,215 15,238,704 Licenses & Permits 1,047,144 880,016 910,997 959,098 809,642 803,337 1,092,525 1,039,600 's Intergovernmental 1,516,624 1,304,391 1,269,509 1,287,638 1,276,129 1,276,154 1,327,964 ? 1,406,282 Charges for Services 1,268,774 1,678,948 1,937,115 1,927,370 1,959,624 2,136,179 2,142,435 2,227,410 € Fines & Forfeitures 157,022 146,970 149,098 171,416 133,970 109,233 82,625 77,335 Interest 194,652 (1,346) 280,218 97,743 89,242 36,228 77,915 40,250 Miscellaneous 137,447 304,595 278,142 59,461 145,962 235,425 452,233 30,500 19,746,301 19,994,323 19,609,987 18,593,691 18,033,204 18,198,341 18,614,912 20,060,081 Total Expenditures General Government 2,308,749 1,979,774 ' 2,501,447 2,421,441 2,395,131 2,346,272 2,592,451 3,015,483 Public Safety 6,775,581 6,822,028 6,820,838: 6,860,900 7,391,773 7,623,772 8,023,558 8,700,461 Public Works 4,519,756 4,018,543 4,257,704 4,044,641 3,912,146 3,733,980 4,234,100 4,359,971 Community Development & Planning 896,532 784,487 = 774,121 799,260 918,017 934,615 1,135,534 1,187,888 Leisure Services 3,215,497 3,051,051 2,406,424 2,484,756 2,419,220 2,786,904 2,629,269 2,796,278 Debt Service 859,932 1,439,460 2,254,384 - - - - - 18,576,047 18,095,343 19,014,918 16,610,998 17,036,287 17,425,543 18,614,912 20,060,081 Total Excess /Deficiency of Revenues Over /Under Expenditures 1,170,255 1,898,979 595,069 1,982,693 996,917 772,798 - - Other financing sources (uses) Transfer In/Out, etc. (1,254,952) (318,500) (163,490) (1,334,934) (500,000) (265,000) - (84,698) 1,580,479 431,578 647,758 496,917 507,798 - - Net Change in Fund Balances Ending Balance $ 9,040,852 $ 10,621,331 $ 11,052,909 $ 11,700,667 $ 12,197,584 $ 12,705,382 $ 12,705,382 $ 12,705,382 Components of Fund Balance Designated /Reserved 775,339 563,115 Undesignated 8,265,513 10,058,216 Nonspendable 167,108 276,924 166,839 402,123 402,123 402,123 Restricted 338,457 548,489 658,194 317,190 317,190 317,190 Committed 442,833 442,833 442,833 Assigned 104,245 186,594 127,574 200,016 200,016 200,016 Unassigned 10,443,099 10,688,660 11,244,977 11,343,220 11,343,220 11,343,220 Ending Balance $ 9,040,852 $ 10,621,331 $ 11,052,909 $ 11,700,667 $ 12,197,584 $ 12,705,382 $ 12,705,382 $ 12,705,382 Unassigned Fund Balance as aPercent of Original Budget Original Budget 19,691,948 19,073,192 18,056,938 1 17,506,072 17,517,544 17,499,724 18,614,912 18,614,912 Unassigned Fund Balance as a Percent of Original Budget 41.97% 52.73% 57.83% 61.06% 64.19% 64.82% 60.94% 60.94% FY 2015 Proposed Budget Page 46 of 297 Enterprise Fund: The measure of financial health for the enterprise funds is net assets. Enterprise funds have restricted and unrestricted net assets. So long as net assets are not negative, these funds are self - supporting. Actual Actual Actual Actual Actual Actual Budget Budget FY2008 FY2009 FY2010 FY2011 FY 2012 FY 2013 FY2014 FY2015 Beginning Balance $ 2,346,635 $ 2,695,326 $ 2,799,026 $ 2,698,386 $ 2,586,550 $ 2,640,622 $ 2,667,408 $ 2,667,408 Operating Revenue Greens fee /cart rentals /membership fees 2,979,324 - 2,763,538 2,520,364 2,372,336 - 2,389,526. 2,302,240. 2,359,455 2,414,806 Tennis revenues Golf shop revenues 224,908 ' 208,645 ' 225,699 ' 283,926 ', 318,306 373,902 337,900 383,350 Driving range revenues 213,103 208,230 174,929 208,865 257,123 281,518 281,000 304,548 Restaurant revenues 125,677 134,060 244,359 700,378 613,099 610,439 799,000 800,000 Miscellaneous 73,497 90,386 62,229 5,691 4,707 9,349 - - 3,616,509 3,404,859 3,227,580 3,571,197 3,582,760 3,577,448 3,777,355 3,902,704 Total Operating Revenue Operating Expenses Golfcourse maintenance 1,373,046 1,457,206 1,250,612 1,232,462 1,233,652; 1,124,919 1,149,240 1,146,385 Clubhouse grounds 100,823 102,175 103,377 84,485 103,209 > 93,779> 104,574 106,607 ' Tennis Golf shop 600,034 617,313 607,452 748,336 803,451 879,645 888,179 1,001,380 Food 8c beverage 46,608 58,318 452,516 838,519 653,511 735,709 912,325 958,111 Administrative 8c general 287,914 288,913 257,590 104,658 99,055 108,346 121,357 104,671 Insurance 150,166 63,247 56,923 40,840 39,864 43,680 48,529 55,809 Depreciation 486,651 490,298 476,583 457,746 436,045 481,490 - - 3,045,242 3,077,469 3,205,053 3,507,045 3,368,789 3,467,569 3,224,204 3,372,963 Total Operating Expense Non - operating revenues (expenses) Interest revenue 36,431: 7,376: 14,686 8,493 7,451 8,554 7,600 8,410 Interest expense (222,237); (202,061); (193,153) (180,125) (167,351) (161,551) - - Otherrevenues 13,609 - - - - - - - Otherexpenses (560,751) (538,151) Gain /(Loss) on disposaloffixed assets (1,083) (29,005) 55,300 (4,355) - 69,905 - (173,279) (223,690) (123,167) (175,987) (159,901) (83,091) (553,151) (529,741) Total Non-operating revenues (expenses) Excess /Deficiency of Revenues Over/ Under Expenses 397,987 = 103,700 = (100,640) (111,836):. 54,071 26,787 - - Operating Transfers Out (49,296) - - - - - - Change in Net Assets 348,691 103,700 (100,640) (111,836) 54,071 26,787 - - Ending Balance $ 2,695,326 $ 2,799,026 $ 2,698,386 $ 2,586,550 $ 2,640,622 $ 2,667,408 $ 2,667,408 $ 2,667,408 Components of Fund Balance Invested in CapitalAssets, net ofrelated debt 2,492,524 2,364,814 2,295,125 2,200,928 2,082,668 1,998,974 1,998,974 1,998,974 Unrestricted 202,802 434,212 403,261 385,622 557,954 668,434 668,434 668,434 Ending Balance $ 2,695,326 $ 2,799,026 $ 2,698,386 $ 2,586,550 $ 2,640,622 $ 2,667,408 $ 2,667,408 $ 2,667,408 FY 2015 Proposed Budget Page 47 of 297 Strategic Planning Strategic Planning is a structured and coordinated approach for developing long -term organizational goals and for developing strategies to accomplish them. It is typically used to facilitate communication, to accommodate divergent interests, and to foster decision making through leadership and consensus building. In municipal government, one of the primary purposes is to set the state for the annual budget process, providing a roadmap for annual resource allocations. Vision The initial step in the strategic planning process is the establishment of a collectively shared vision for North Palm Beach's near -term future: North Palm Beach will be known for our unparalleled amenities and innovative approach to meeting the needs of our safe and secure community through continuous improvement in infrastructure and service delivery as identified by our stakeholders. Mission The mission statement provides the foundation for all remaining portions of the strategic planning process: We sustain North Palm Beach as the "best place to live under the sun" through: • Superior services • Timeless traditions • Quality amenities Core Values The core values of an organization are the values it holds that form the foundation on which it performs its work and conducts itself. They describe how an organization believes it should act, and how those beliefs should be reflected in its actions: We create exceptional public service through: ❖ Our People We care about our people and actively advocate diversity, safety, and personal growth ❖ Continuous Improvement We are committed to excellence and professionalism. ❖ Integrily We are transparent, honest, ethical, and have mutual respect for all people. Stren -2ths, Weaknesses, Opportunities and Threats Critical to the strategic planning process is the understanding of the forces, both positive and negative, that impact the Village's ability to achieve its mission. The Village, as an organization, has certain internal attributes that are recognized as beneficial assets; its strengths. However, the Village also has some internal attributes that are negative; its weaknesses. There are those external forces in the outside world that are beyond the Village's control or influence. Some of these forces create favorable conditions for achievement of the FY 2015 Proposed Budget Page 48 of 297 Village's mission; they are opportunities. Of course, some of the external forces are contrary, and potentially damaging to the Village's interests; these are threats. The internal organizational strengths and external opportunities represent sources of positive achievement and provide a launching point for development of strategies designed to accomplish the Village's vision. The internal weaknesses and external threats represent barriers to success but understanding them can also provide inspiration for new strategies. The results of the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis are listed on the following page. FY 2015 Proposed Budget Page 49 of 297 SWOT Analysis: FY 2015 Proposed Budget Page 50 of 297 Strengths: (Good now: maintain, build, leverage) Weaknesses: (Bad now: remedy, stop) ❖ Affluent community ❖ State pressures on municipal taxing authority ❖ Strong financial reserves ❖ Limited retail ❖ Taken steps to reduce costs ❖ No anchor or destination ❖ Generally supportive residents ❖ Aged / deteriorated buildings in our business community ❖ Unified Council ❖ High quality staff ❖ Advisory Board /citizen participation ❖ Location /waterways ❖ Tradition — 2nd & 3rd generation residents Opportunities: (Good Future: prioritize, optimize) Threats: (Bad Future: counter) ❖ Seek additional funding sources such as service fees and ❖ Fragile economy grants ❖ State and County pressure on home -rule authority of ❖ Seek to influence State Legislature municipalities ❖ Pursue further cost efficiencies ❖ Increase in unfunded mandates ❖ Improve relationships with business community ❖ Unfunded liabilities by Federal Government •'• Annexation FY 2015 Proposed Budget Page 50 of 297 Lone Term Goals In the annual strategic planning process, Village Council revisits and refines goals to continually adjust to the current social and economic environment. Overall the general Village goals remain consistent as follows: 1. Protect the Financial Integrity of the Village 2. Maintain a High Quality of Life in the Village 3. Maintain and Improve all Recreational Facilities of the Village 4. Foster the Spirit and Participation of our Community 5. Improve the Overall Appearance of the Village 6. Continuously Improve the Way We Work 7. Implement the Pay for Performance System The Annual Budget has been developed with these goals in mind. The budget goals provide the overall framework for the budget process. Village departments have reviewed their department goals for the upcoming year to assure that the overall long -term Village goals were addressed in their priorities for program, service and facility requests. Performance Measures Performance measures form the foundation for the strategic planning process because they are really what assure goal accomplishment. Some measures track outputs or number of units of service delivered over time. Others measure efficiency or how well resources are leveraged. Each type of measure is significant within the performance measurement system. Village departments have included performance measures in their department plans. Performance measures allow Village departments to monitor implementation of projects, programs, initiatives, and services funded through the budget; measure their success in meeting the targeted performance; identify opportunities to improve service delivery; inform Council as they make strategic adjustments; and provide data to support decisions for future resource allocation. C'nnellminn The Village integrates the annual budgeting process with the strategic planning process. The Strategic Plan helps to prioritize how the Village will use current and future resources to achieve identified goals. In this way the strategic plan drives budget preparation decisions and service delivery implementation. The Village's ongoing strategic planning process is an affirmation and continuation of a time honored credo that we are the "best place to live under the sun." FY 2015 Proposed Budget Page 51 of 297 Long Range Planning The long -range planning for the Village of North Palm Beach is outlined in the following policy documents: 1. The Comprehensive Plan. 2. The Annual Budget. The Comprehensive Plan was adopted in 1989, in compliance with the Florida Statutes Chapter 163, Department of Community Affairs. The Plan guides future growth and development and provides an overall vision for the Village. The Plan contains the flowing elements: 1. Future Land Use 2. Transportation 3. Housing 4. Infrastructure 5. Coastal Management 6. Conservation 7. Recreation and Open Space 8. Intergovernmental Coordination 9. Capital Improvements 10. Public School Concurrency 11. Annexation (Optional Element) Each element of the plan provides an inventory of existing conditions, an analysis of needs along with goals, objectives and policies to guide the growth of the Village. Levels of Service (LOS) are also established in the comprehensive plan to ensure that infrastructure and services will be available to accommodate new residential and commercial developments. The LOS analysis and resultant capital expenditures are included in the Capital Improvement element which provides the continuity between the goals and objectives of the Comprehensive Plan and the Annual Budget through the five (5) year Capital Improvement Plan (CIP). The CIP identifies projects and their associated costs and is reviewed and updated annually in both documents. Lone -Term Financial Plan The Annual Budget contains a five year CIP and an analysis of total projected revenues and expenditures for the same time periods as the CIP. The projections assist management in the planning and allocation of resources to achieve the Village Council goals of maintaining a financially secure municipal government. The results of the long -range financial plan for the major operating funds (General Fund and Country Club) are provided on the following pages. The lone -ranee financial plan should not be confused with the Village's budget. The budget is the Village's legal authority for spending. The budget focuses on the near -term future; it is very detailed, and it must be balanced between resources and requirements. In comparison, the lone -ranee financial plan has a longer time - frame, is less detailed and is only used to help management develop budget strategies and prioritize the use of limited resources. FY 2015 Proposed Budget Page 52 of 297 General Fund: The projections are based on the following set of assumptions: 1. 3% annual growth rate during the FY 2016 -2019 period 2. Property Taxes will represent approximately 58% of total General Fund revenues 3. Personnel Costs will represent 75% of total General Fund revenues 4. Operating Costs will represent 25% of total General Fund revenues 5. Capital Outlay will represent the totals in the CIP Plan General Fund Projections (assumes 3% growth rate) Revenues (Sources): Property Taxes Other Revenue Total Revenue Expenses (Uses): Personnel Operating Capital Outlay Debt Service Reserves /Contingencies Total Expenses Net Revenue / Expense FY 2015 FY 2016 15, 961, 305 5,320,435 1,504,125 - 16,440,144 5,480,048 691,225 - 16, 933, 348 5,644,449 485,000 - Budget Projected FY 2017 Projected FY 2018 Projected FY 2019 Projected $ 11,618,343 $ 11,983,892 $ 12,343,409 $ 12,713,711 $ 12,192,011 8,441,738 8,677,991 8,938,331 9,206,481 10,385,787 20,060,081 20,661,883 21,281,740 21,920,192 22,577,798 14, 858, 962 5,075,340 2,464,634 115,779 15,496,413 5,165,471 1,733,500 - 15, 961, 305 5,320,435 1,504,125 - 16,440,144 5,480,048 691,225 - 16, 933, 348 5,644,449 485,000 - 22,514,715 22,395,383 22,785,865 22,611,417 23,062,798 $ (2,454,634) $ (1,733,500) $ (1,504,125) $ (691,225) $ (485,000) FY 2015 Proposed Budget Page 53 of 297 Country Club: The projections are based on the following set of assumptions: 1. 3% annual growth rate during the FY 2016 -2019 period 2. Golf Revenues will represent approximately 79% of total Country Club revenues 3. Personnel Costs will represent 29% of total Country Club revenues 4. Operating Costs will represent 55% of total Country Club revenues 5. Capital Outlay will represent the totals in the CIP Plan Country Club Projections (assumes 3% growth rate) FY 2015 Proposed Budget Page 54 of 297 FY 2015 FY 2016 Revenues (Sources): Budget Projected FY 2017 Projected FY 2018 Projected FY 2019 Projected Golf $ 3,102,704 $ 3,182,473 $ 3,277,948 $ 3,376,286 $ 3,477,575 Food & Beverage 800,000 837,917 863,055 888,946 915,615 Administration 8,410 8,057 8,299 8,548 8,804 Total Revenue 3,911,114 4,028,447 4,149,301 4,273,780 4,401,993 Expenses (Uses): Personnel 1,203, 514 1,168,250 1,203,297 1,239,396 1,276,578 Operating 2,150,078 2,215,646 2,282,115 2,350,579 2,421,096 Capital Outlay - - - 26,000 - Debt Service 538,151 538,151 538,151 538,151 538,151 Reserves /Contingencies 19,371 14,905 15,352 15,813 16,287 Total Expenses 3,911,114 3,936,952 4,038,916 4,169,939 4,252,113 Net Revenue / Expense $ - $ 91,495 $ 110,385 $ 103,841 $ 149,881 FY 2015 Proposed Budget Page 54 of 297