08-26-2015 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 26, 2015
Present: Robert A. Gebbia, Mayor '
David B. Norris, Vice Mayor
Doug Bush, President Pro Tern (via telephone)
Darryl C. Aubrey, Sc.D., Councilmember
Mark Mullinix, Councilmember
James P. Kelly, Village Manager
Melissa Teal, Village Clerk
ROLL CALL
Mayor Gebbia called the meeting to order at 7:00 p.m. All members of Council were present;
President Pro Tern Bush was present by telephone. All members of staff were present, except the
Village Attorney. Also present were Finance Director Sarnia Janjua, Chief of Police Rick Jenkins,
Fire Chief J.D. Armstrong, Community Development Director Chuck Huff, Golf Director
Casey Mitchell, IT Director Michael Applegate, Parks and Recreation Director Mark Hodgkins,
and Public Works Director Brian Moree.
The purpose of the meeting was to discuss these items:
• Country Club golf cart lease
• Capital Improvement Plan — Recap of FY 2015 capital projects outstanding
• FY 2016 Capital Outlay
• Country Club
• General Fund Capital Improvement Plan Funding
• FY 2016 — FY 2015 10 -Year Capital Improvement Plan
• Country Club and General Fund Budget Change Summary
• Millage Discussion
COUNTRY CLUB GOLF CART LEASE
Mr. Kelly detailed the individual, monthly, and total costs for an operating lease or a capital
lease, as compared to the current golf cart lease. Mr. Kelly reviewed the golf cart buyback
proposal from Club Car and the current lease balloon payment. Mr. Kelly recommended Council
enter into an operating lease for the new golf carts. Golf Director Casey Mitchell responded to
Council questions.
By consensus, the Council was in favor of an operating lease.
CIP FUND RECAP — 2015 PURCHASES
• $1,582,911 total CIP Fund purchases FY 2015
• $640,046 CIP available balance
• $321,079 total outstanding projects
o $61,079 Power -Lift Stretchers
\ o $80,000 Earman River Irrigation Pump Station
o $130,000 Public Works Site Drainage and Lot Resurfacing
o $50,000 Public Works Vehicle Work Bay
• $318,967 CIP remaining balance (CIP available balance less outstanding projects)
Minutes of Village Council Budget Workshop Session held August 26, 2015 Page 2 of 3
FY 2016 CAPITAL OUTLAY SUMMARY — COUNTRY CLUB
• $20,000 Driving Range Golf Ball Dispensers (2)
FY 2016 CAPITAL OUTLAY SUMMARY — GENERAL FUND
• $3,521,368 total FY 2016 Capital Outlay including Anchorage Park Phase 2 Project
• $1,421,368 total FY 2016 Capital Outlay not including Anchorage Park Phase 2 Project
Mr. Kelly reviewed the itemized FY 2016 General Fund Capital Outlay Summary by department.
Discussion ensued regarding the proposed purchase of a Sanitation service vehicle. Mr. Kelly
explained this prototype vehicle would be used to evaluate its suitability as a replacement for the
jitneys. By consensus, the Council agreed to keep $40,000 in the budget for the service vehicle;
however, more information was requested regarding options and alternatives.
Discussion tools place concerning automated irrigation systems and re- grassing of Village parks.
FY 2016 -2025 10 -YEAR CAPITAL IMPROVEMENT PLAN SUMMARY
Mr. Kelly presented the 10 -Year Capital Improvement Plan Summary for FY 2016 -2025 by
department and category.
Discussion ensued on the projected totals for Public Works vehicle purchases for FY 2016 -2018
and whether these costs could be spread out over eight to ten years. Mr. Kelly explained the
vehicles are needed in conjunction with the operational change to front -end loaders in sanitation.
Discussion took place regarding street resurfacing. Public Works Director Brian Moree reported
an average cost of $250,000 in prior years for street resurfacing.
Parks and Recreation Director Mark Hodgkins explained the $45,000 cost every other year was
to replace playground equipment at each Village park.
As directed by the Council, Mrs. Janjua will provide a ten -year history of capital expenditures.
Discussion ensued regarding redoing golf course greens. Golf Director Casey Mitchell noted $156,000
was set aside in FY 2019 to replace 26 irrigation boxes. Ms. Mitchell reported the greens were re-
grassed in 2006 and redoing them would be determined in conjunction with the clubhouse project.
Council consensus was to add $300,000 to Construction & Major Renovation — Golf in FY 2018
for re- grassing the golf course greens.
Discussion took place concerning plans for Anchorage Park. Mr. Hodgkins reported $675,000 in
grant funding had been received for Anchorage Park. Discussion ensued regarding seawall repairs.
COUNTRY CLUB BUDGET CHANGES SUMMARY
Mr. Kelly reviewed increases in revenues and decreases in expenses resulting in a net budgetary
impact of $115,350. Item totals as revised and the budgetary increase /decrease:
• $631,635 Membership Fee increase; $21,700 revenue increase
• $14,212 Charge Card Fee Reimbursement; $14,212 revenue increase
• $145,000 Golf Cart Buyback proposal adjustment; $33,000 revenue increase
• $1,209,119 Personnel costs adjustment and changes through July; health and workers'
compensation insurance renewal (Council consensus); $7,214 expense decrease
• $51,889 property /casualty insurance renewal; $7,214 expense decrease
• $112,000 Golf Cart Debt Service — adjustment for operating lease option; $135,000
expense decrease
• $149,700 Contractual Services — GPS cost and Golf Cart Operating Lease proposal;
$102,900 expense increase
Minutes of Village Council Budget Workshop Session held August 26, 2015 Page 3 of 3
GENERAL FUND BUDGET CHANGES SUMMARY
Mr. Kelly reviewed increases in revenues and decreases in expenses resulting in a net budgetary
impact of $841,327. Item totals as revised and the budgetary increase /decrease:
• $2,282,098 FDOR Revenue estimates; $50,855 revenue increase
• $12,353 Charge Card Fee Reimbursement; $12,353 revenue increase
• $250,000 Master Plan fee (TCRPC) charged to FY 2015 Budget; $250,000 expense decrease
• $14,413,947 Personnel costs adjustment; $211,964 expense decrease
• $288,453 Property casualty insurance renewal costs; $85,521 expense decrease
• $87,826 Sanitation position (1 FT) deleted; $87,826 expense decrease
• $15,000 Street Signs budget adjustment; $10,000 expense decrease
• $50,000 SWA tipping fees cost adjustment; $12,500 expense decrease
• $10,000 Anchorage Park electrical project — grant eligible; $10,000 expense decrease
• $110,308 Ambulance and Sanitation truck— capital lease option removed; $110,308 expense decrease
GENERAL FUND MILLAGE
Mr. Kelly reviewed millage rates and funds available for transfer to the Capital Improvement Plan.
Mr. Kelly recommended maintaining the current millage rate of 7.33 mils, which would allow
complete funding of the FY 2016 Capital Improvement Plan without using General Fund Reserves.
• $447,694 budgetary savings available for additional CIP transfer
• $656,056 contribution to CIP Fund (4/10 of a mill)
• $318,967 estimated CIP balance at FY 2015 year -end
• $1,422,717 total CIP available balance
• $1,421,368 FY 2016 CIP
Mr. Kelly noted the departmental Operating Budget for FY 2016 is less than FY 2015.
Discussion ensued on the total Operating Budget for FY 2015 and FY 2016. Mrs. Janjua
reported the totals, with/without CIP transfer, and the current total Reserves:
• $19,557,360 Operating Budget FY 2015
• $21,506,606 Operating Budget with CIP transfer FY 2015 ($19,863,106 plus General Fund
Reserve transfer to CIP)
• $19,42,217 Operating Budget FY 2016
• $20,524,967 Operating Budget with CIP transfer FY 2016
• $10,744,864 Reserves
By consensus, the Council was in favor of keeping the millage rate at 7.33 mills.
Discussion ensued regarding re- sodding the Community Center fields in FY 2015.
CONSENSUS ITEMS
• golf cart operating lease
• $40,000 capital outlay for one sanitation service vehicle
• 7.33 mills
• Budget Workshop Session on September 2, 2016 cancelled
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:16 p.m.
Melissa Teal, CMC, Village Clerk