07-16-2008 VC B WS-M• MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORH)A
JULY 16, 2008
Present: William Manuel, Mayor
David B. Norris, Vice Mayor
Darryl Aubrey, President Pro Tem
Edwazd M. Eissey, Councilman
T.R. Hernacki, Councilman
Jimmy Knight, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Manuel called the Budget Workshop Session 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 and Director of Golf Mike Gray, were present.
RECAP OF JUNE 25. 2008 BUDGET WORKSHOP DISCUSSION ITEMS
Mr. Knight advised that capital outlay has been reduced from $79,500 to $44,500 by deleting the
• expenditure to renovate the shutlleboazd court sun canopy for use at the driving range. Mr. Knight
does not recommend budgeting funds to purchase a mobile canopy.
Mr. Knight reviewed pre-payment fees and payoff amounts for Country Club loans. Mr. Knight
reported that debt service is $498,901 annually.
Discussion took place conceming memberships. Staff recommends that total memberships not
exceed 415. Mr. Knight proposed that business memberships (if offered) cost more than resident
rates but less than non-resident rates. Current membership numbers were reviewed. It was noted
that the existing waiting list of 58 is evenly split between residents and non-residents. Mr. Gray
advised that membership renewals will be mailed at the end of July. Discussion ensued on
allowing employees to obtain memberships at the resident rate, as well as permitting employees'
children to participate in recreation programs at the resident rate.
Regarding cart rental fees, Mr. Knight noted that data from the Golf-Trac software system is an
aggregate of all rounds played and reflects a slightly lower cost than is actually collected.
Discussion was held concerning an administrative fee for work performed for the Country Club
by general employees. Mr. Knight displayed a Country Club work order for the month of June,
which details work performed by Public Works employees, including date, project, hours
worked, and employee rate of pay. Mr. Knight reported that all maintenance work performed by
Public Works is invoiced back to the Country Club. Council consensus was that any
• administrative fee is to be determined at the end of the fiscal year.
Minutes of Village Council Budget Workshop Session held July 16, 2008 Page 2 of 3
• COUNTRY CLUB BUDGET REVIEW
Mr. Knight noted that projected membership revenue is based on 394 memberships and does not
include summer memberships.
Mr. Knight reviewed greens fees, which will include cart rental, but not tax, and will consist of
four published categories or seasons. Golf revenues total $3,104,899, including memberships,
greens fees, cart fees, and driving range. Brief discussion ensued on "other" revenue, which
encompasses food and beverage lease, utility reimbursement, golf handicap services, golf shop
sales, investment interest, bag room, lessons, golf ball retrieval, gift certificate sales, rental of
golf clubs, and tournament proceeds. Mr. Knight provided a comparison of current yeaz revenue
and rounds played through 7/14/08 to projected revenue and rounds of play for FY 2008-2009.
Mr. Knight reviewed combined expenses for FY 2008-2009. Mr. Knight reported that
contingency is $213,639 and is expected to increase slightly due to the expected reduction in
workers' compensation costs. Discussion ensued on contingency. Mr. Knight explained that
contingency has increased because of budgetary savings from outsourcing golf course
maintenance in the current year's budget. Mr. Knight noted that contingency funds were
expended from the current yeaz's budget to install the reclaimed waterline. Mr. Knight advised
that $46,000 has been budgeted in FY 2008-2009 for reclaimed water, including $24,000 for
availability, with the remainder for water usage.
• Mr. Knight reviewed Administration and Golf Shop personnel changes.
Mr. Knight reported that the food and beverage contract and golf course maintenance contract
will increase based on the August consumer price index (CPI); however, the golf course
maintenance contract has a maximum increase of 5%. Mr. Knight noted that the budget was
prepazed using April's CPI of 4.5%.
Mr. Knight reported $3,573,309 in projected revenue, $3,359,670 in expenses, with an operating
income (contingency) of$213,639.
Discussion ensued on membership renewals. Mr. Gray explained that current members will have
from August 1st to September 14th to renew their membership. Mr. Gray advised that after
September 14th, staff will begin contacting those on the waiting list. It was noted that last year
any existing member was allowed to renew, even if it was after the deadline. By consensus, the
Council agreed to continue the policy of allowing all current members to renew, but expressed
concern that memberships not exceed a maximum of 415, with 400 the preferred total.
Mr. Knight noted that in discussing memberships, the total does not include junior members.
Discussion took place concerning displaying pace of play on the golf cart screens. Mr. Gray will
investigate this.
• It was noted that the "service levels narrative" pazagraph in the budget should specify five tees.
Mr. Knight will provide Council with a revised budget next month, once final costs for items
such as insurance have been determined.
Minutes of Village Council Budget Workshop Session held July 16, 2008 Page 3 of 3
• CONSENSUS ITEMS
Administrative fee to be determined at end of 2007-2008 fiscal yeaz.
Current members continue to have preference for membership renewal; however memberships
will be capped at 400, with a maximum of415 members allowed, should there be late renewals
by current members. Renewal letters will detail this policy.
Country Club budget is approved as presented.
The next Budget Workshop scheduled for July 23rd will beheld from 7:30 p.m. to 9:30 p.m.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:20 p.m.
Melissa eal, CMC, Village Clerk
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