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08-29-2019 VC BWS-MSUMMARY MINUTES OF BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA August 29, 2019 Present: Darryl C. Aubrey, Sc.D., Mayor Mark Mullinix, Vice Mayor David B. Norris, President Pro Tem Susan Bickel, Councilmember Deborah Searcy, Councilmember Andrew D. Lukasik, Village Manager Leonard G. Rubin, P.A., Village Attorney Jessica Green, 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. PURPOSE OF THE MEETING Mr. Lukasik provided an overview of the Five -Year Capital Improvement Plan (CIP) and recapped the Proposed Budget and Millage. He explained a part of the discussion was cashflow and where the Village stands on its long-range plan. The following items were reviewed: • FY 2020-2024 FIVE-YEAR CIP SUMMARY • FY 2020 CAPITAL OUTLAY • FY 2020-2023 CIP CASH FLOW SUMMARY • FY 2020-2024 VEHICLE LEASE PROGRAM PAYMENTS • FY 2020 COMBINED BUDGET SUMMARY • FY 2020 GENERAL FUND BUDGET SUMMARY • FY 2020 MILLAGE RATE OPTIONS • FY2020 COUNTRY CLUB BUDGET SUMMARY FIVE-YEAR CIP SUMMARY Total CIP $13.74 million Category Amount (in millions) Percentage Streets and Roads $9.03 66 Park Development $1.52 11 Facilities $1.15 8 Stormwater $0.93 7 Vehicle and Equipment $1.01 7 Technology $0.11 1 Funding Source Amount(in millions) Percentage Grant Funding $4.43 32 Other $3.35 24 Infrastructure Surtax $3.26 24 General Revenues $2.42 18 Country Club $0.29 2 Village Council Workshop Session held August 29, 2019 FY 2020 CAPITAL OUTLA Mr. Lukasik broke down the FY 2020 capital projects totaling $1,335,700, including: • Ventilation/Rehab Fans • Virtualization • Rebuild Evidence Room • Lakeside Park Paths • Anchorage Park Enhancement • Asphalt Resurfacing • Pool Chiller • Alley Wall Replacement • Sidewalk Repairs • Bridge Improvement — US 1 • Seawall — Lakeside Park • Stormwater Study Page 2 of 3 Discussion ensued regarding the prioritization of dry storage over improvements to the dog park. FY 2020 CIP CASH FLOW SUMMARY Mr. Lukasik reviewed the FY 2020-2024 CIP Cash Flow Summary, including beginning balance, revenue sources, projects, and estimated ending balances in each fiscal year. He highlighted the air handler in the library in FY 2021 and stated the Village was already on borrowed time for that expenditure. He noted it cannot be repaired if it goes out and discussion ensued. Mr. Lukasik pointed out an estimated negative cash flow during FY 2021 and 2022, followed by increases in the following three years to end 2024 at $907,806. He stated that year would fill with other expenditures as the plan was not fully developed. FY 2020 VEHICLE LEASE PROGRAM PAYMENTS Mr. Lukasik distributed documents related to purchasing garbage trucks. Discussion ensued regarding the lease -to -own terms of a garbage truck compared to purchase and grant options. The Commission agreed by consensus to apply for the grant before making a decision and to revisit the issue as the long-range needs become clearer. FY 2020 COMBINED BUDGET SUMMARY Mr. Lukasik presented the combined budget summary. Category General Fund Millage Rate $7.50 Personnel $17,477,921 Operating $6,443,754 Debt Service $19553,357 CIP Transfer $417,150 Contingency $231,795 Total $2691239977 Country Club Total N/A $7.50 $1,006,219 $18,484,140 $2,54300 $8,987,434 $4331689 $1,987,046 N/A $417,150 N/A $231,795 $3,9839588 $3091079565 Village Council Workshop Session held August 29, 2019 Position Type General Fund Country Club Total Full -Time 146 7 153 Part -Time 68 28 96 FY 2020 GENERAL FUND BUDGET SUMMARY Page 3 of 3 Mr. Lukasik outlined the General Fund budget summary and changes. He explained the total expenditures increased 4.59 percent, largely attributed to increased cost in police and fire rescue, along with increased facility services and building costs. FY 2020 MILLAGE RATE OPTIONS The rollback rate is $7.1798. Mr. Lukasik reviewed the millage table and presented the impact of three (3) millage rate options: Milla eg Rate Budgetary Ad -Valorem % increase/ decrease over RBR CIP Transfer Council Contingency Vote Required 7.50 $16,736,574 4.46% $417,150 $231,795 Two -Thirds 7.42 $16,558,050 3.35% $417,150 $53,271 Majority 7.40 $16,513,419 3.07% $417,150 $8,640 Majority FY 2020 COUNTRY CLUB BUDGET SUMMARY Mr. Lukasik outlined the Country Club budget summary and changes and outlined the sources of revenue and expenses. Category FY 2020 Personnel $19006,219 Operating $2,54300 Debt Service $43309 Total Budget $399839588 %, Tnt-.rPacP/ FY 2019 Decrease $828,298 21.48% $1,618,269 57.19% $433,689 0 $298809256 38.31% $ Increase/ Decrease $177,921 $925,411 0 $1,103,332 COUNCIL CONSENSUS Discussion ensued regarding the millage rate and budgetary challenges, and by unanimous consensus, the millage rate was set at 7.50 FY 2020 BUDGET HEARING AND WORKSHOP DATES Mr. Lukasik outlined the Budget Workshop dates and stated hearings would be scheduled for September 12 and 26. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 7:57 p.m. J. ss'ca Green, MMC, Village Clerk