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08-06-2014 VC B WS-M MINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA AUGUST 6, 2014 Present: Darryl C. Aubrey, Sc.D., Mayor Robert A. Gebbia, Vice Mayor David B. Norris, President Pro Tem William L. Manuel, Councilman Doug Bush, Councilman Jim Kelly, Village Manager Melissa Teal, Village Clerk ROLL CALL Mayor Aubrey called the meeting to order at 7:00 p.m. All members of Council were present. All members of staff were present, except the Village Attorney. Finance Director Samia Janjua, Human Resources Director Loren Slaydon, and Information Technology Director Michael Applegate were present. CEO Kurt Gehring, Senior Benefits Consultant Shawn Fleming, and Risk Management Director Ellen Jones were present on behalf of The Gehring Group, the Agent of Record for Village’s health, dental, life, vision, disability, accident, and workers compensation insurance policies. The purpose of the meeting was to review the proposed FY 2015 Village Council, Village Clerk, Village Attorney, Village Manager, Human Resources, Finance, Information Technology, Reserves & Other, and General Services – Village Hall departmental budgets. VILLAGE COUNCIL  Personnel: $50,468  Operating: $79,615  Total expenses: $130,083; 8.31% or $11,797 decrease from FY 2014 Discussion ensued on the cost allocation for the Inspector General. Mrs. Janjua advised that this line item would be funded when the court case is resolved. VILLAGE CLERK  Personnel: $290,204  Operating: $32,160  Total expenses: $322,364; 0.15% or $485 increase over FY 2014  No personnel changes  3 full-time employees VILLAGE ATTORNEY  Total Operating: $140,000; 12.5% or $20,000 decrease from FY 2014  Legal Services – Village Attorney: $115,000  Legal Services – Special: $10,000  Legal Services – Labor: $25,000 By consensus, Council decreased operating expenses in the Village Attorney budget from the proposed $160,000 to $140.000, based on previous year’s expenditures. Minutes of Village Council Budget Workshop Session held August 6, 2014 Page 2 of 3 VILLAGE MANAGER  Personnel: $285,918  Operating: $30,700  Total expenses: $316,618; 0.03% or $91 decrease from FY 2014  No personnel changes  2 full-time employees Mr. Kelly requested that Village Manager operating expenses be increased by $13,500 and split between Professional Services and Contractual Services in order to provide more training to senior staff. By consensus, Council approved the increase. HUMAN RESOURCES  Personnel: $255,397  Operating: $56,307  Total expenses: $11,704; 6.23% or $18,285 increase over FY 2014  Personnel changes: 1 part-time Human Resources Administrative Coordinator position added  2 full-time employees, 1 part-time employee Discussion took place regarding the need for a part-time position. By consensus, Council reduced operating expenses from $81,307 to $56,307 by deleting the $25,000 expense for online performance review software; cost to be funded with reserves. FINANCE  Personnel: $676,535  Operating: $52,400  Total expenses: $728,935; 25.91% or $149,983 increase over FY 2014  Personnel changes: 1 full-time Project & Procurement Manager position added and 1 full-time Accounting Clerk position added; 1 part-time Finance Intern position deleted  7 full-time employees; Finance Director also oversees 1 full-time Country Club Accounting Clerk Discussion took place concerning personnel, including salaries, overtime, and changing the part-time Finance Intern position to full-time Accounting Clerk. Regarding the Village Manager’s authority to grant temporary, six-month personnel changes, Council Members directed that they be advised in April when the changes are made. INFORMATION TECHNOLOGY  Personnel: $303,023  Operating: $26,200  Total expenses: $329,223; 5.43% or $18,899 decrease from FY 2014  No personnel changes  3 full-time employees Mr. Kelly and Mr. Applegate reviewed IT projects for FY 2015, including redesign of the Village website, upgrade to Laserfiche electronic document management system, virtualization, and LPR cameras. Mr. Kelly distributed information on NDI Recognition Systems license plate recognition cameras used by the City of Lighthouse Point. By consensus, Council approved the IT projects proposed for FY 2015. Consensus of Council was to reduce operating expenses from $128,200 to $26,200 by deleting the $102,000 expense for website redesign and Laserfiche upgrade; cost to be funded with reserves. Minutes of Village Council Budget Workshop Session held August 6, 2014 Page 3 of 3 RESERVES & OTHER • Debt: none j- • Reserves & Contingencies: $115,779 • Property /General Liability Insurance: $373,974; a 15% increase over FY 2014 • Total expenses: $431,223; 52.99% or $169,623 increase over FY 2014 * Changes made to the proposed budget change the actual amount of Council Contingency. Mrs. Janjua will provide an updated total at the next Budget Workshop meeting. GENERAL SERVICES - VILLAGE HALL • Operating: $118,303; 6.23% or $6,943 increase over FY 2014 • Capital expense: zero Mr. Kelly requested operating expenses in the Newsletter line item be increased from $30,000 to $35,000 based on current trend. Mr. Kelly discussed adding another page to the Newsletter for additional advertising and offering quarter -page ads. By consensus, Council agreed to increase the Newsletter line item by $5,000. HEALTHCARE BENEFITS Gehring Group representatives Shawn Fleming gave a presentation entitled "Health Care Reform Recap and Renewal Review." Discussion topics included a recap of healthcare reform and industry related fees, claims history and insurance projection, medical insurance renewals, current and recommended schedule of benefits, and additional cost cutting strategies. Consensus of Council was to renew medical and dental coverage with Cigna, and to accept the alternate renewal at 3% with the added imaging copay of $150 and higher copays for Tier 2 and Tier 3 prescriptions. Gehring Group representative Ellen Jones gave a presentation entitled "Workers Compensation Overview and Renewal Review." Discussion topics included three -year rolling claims history, experience modification factor, safety reviews, renewal options, claims and insurance projections for policy years from 2010/2011 to 2013/2014, and total incurred losses by policy year. CONSENSUS ITEMS • Reduce Village Attorney budget by $20,000. • Increase Village Manager budget by $13,500. • Reduce Human Resources budget by $25,000. • Reduce Information Technology budget by $102,000. • Increase General Services budget by $5,000 • Renew medical and dental insurance coverage with Cigna at 3% increase. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 9:01 p.m. Melissa Teal, CMC, Village Clerk 1