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07-19-2017 VC BWS-MMINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA JULY 199 2017 Present: Darryl C. Aubrey, Sc.D., Mayor Robert A. Gebbia, Vice Mayor Mark Mullinix, President Pro Tem David B. Norris, Councilmember Susan Bickel, Councilmember Andrew D. Lukasik, 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 Sarnia Janjua, Community Development Director Denise Malone, and Public Works Director Steven Hallock were present. PURPOSE OF THE MEETING Mr. Lukasik gave a general overview of the proposed budget. The following items were reviewed: • FY 2018 proposed budget summary • FY 2018 Country Club Budget overview and General Fund Budget overview • FY 2018 millage selection options and tentative millage rate • FY 2018 budget hearings FY 2018 PROPOSED BUDGET SUMMARY Mr. Lukasik proposed a millage rate of 7.33, a total General Fund budget of $23,449,125, and a total Country Club budget of $2,852,626. Mr. Lukasik explained the General Fund operating budget included $1,293,101 debt service. Mr. Lukasik proposed a combined General Fund and Country Club full-time and part-time workforce of 245. FY 2018 COUNTRY CLUB BUDGET OVERVIEW Mr. Lukasik reviewed the budget for the Country Club. Mr. Lukasik explained the budget contemplated that the Country Club would be closed for restoration from May 1, 2018 through the entirety of FY 2018. Mr. Lukasik discussed research staff had done to come up with the numbers utilized and stated projected revenue totaled $2,852,626, including: • Cart Rental and Walking Fees: $581,229 or 20.38% of the budget • Greens Fees: $655,902 or 22.99% of the budget • Golf Merchandise Sales: $100,000 or 3.51 % of the budget • Golf Lessons: $100,000 or 3.51 % of the budget • Membership: $500,180 or 17.53% of the budget • Driving Range: $327,866 or 11.49% of the budget • Appropriated Retained Earnings: $526,649 or 18.46% of the budget Minutes of the Village Council Budget Workshop Session held July 19, 2017 Page 2 of 4 Mayor Aubrey asked whether membership fees would be prorated for the year. Mr. Lukasik discussed reciprocal agreements with other clubs and the history of the relationships required. Discussion ensued regarding the driving range budget and opportunities to attract additional people to the range and the balance of retained earnings. Continuing, Mr. Lukasik reviewed Country Club budgeted expenditures. The total of $2,852,626 included: • Personnel: $766,177 or 26.86% of the budget • Operating: $1,615,447 or 56.63% of the budget • Property and General Liability Insurance: $49,843 or 1.75% of the budget • Debt service: $398,159 or 13.96% of the budget • Capital: $23,000, or 0.81 % of the budget Council and staff discussed expenditure changes due to closure for the construction project and maintenance contracts. Mr. Lukasik noted that personnel expenses- were decreasing significantly, but staff was working to avoid a mass layoff during the course reconstruction. Mr. Lukasik pointed to other ways in which people could be redeployed for other temporary roles within the Village. FY 2018 SUMMARY OF COUNTRY CLUB POSITION CHANGES FY 2018 GENERAL FUND BUDGET OVERVIEW Mr. Lukasik reviewed the General Fund budget. He stated projected revenue totaled $23,449,125, which included: • Ad valorem taxes: $14,789,868; 63.07% of the budget • Utility service taxes: $2,283,734; 9.74% of the budget • Charges for services: $2,326,050; 9.92% of the budget Continuing, Mr. Lukasik reviewed budgeted expenditures by Department. Mr. Lukasik explained the total of $23,449,125 included: • Police and Fire: $9,139,741; 39.98% of the budget • Public Works: $5,280,368; 22.52% of the budget • General Government: $3,270,956; 13.95 % of the budget • Leisure Services: $2,855,695; 12.18% of the budget • Community Development: $1,609,264; 6.86% of the budget FY 2018 FY 2017 Change Full -Time 5 8 -3 Part -Time T2_7 62 -35 FY 2018 GENERAL FUND BUDGET OVERVIEW Mr. Lukasik reviewed the General Fund budget. He stated projected revenue totaled $23,449,125, which included: • Ad valorem taxes: $14,789,868; 63.07% of the budget • Utility service taxes: $2,283,734; 9.74% of the budget • Charges for services: $2,326,050; 9.92% of the budget Continuing, Mr. Lukasik reviewed budgeted expenditures by Department. Mr. Lukasik explained the total of $23,449,125 included: • Police and Fire: $9,139,741; 39.98% of the budget • Public Works: $5,280,368; 22.52% of the budget • General Government: $3,270,956; 13.95 % of the budget • Leisure Services: $2,855,695; 12.18% of the budget • Community Development: $1,609,264; 6.86% of the budget Minutes of the Village Council Budget Workshop Session held July 19, 2017 Page 3 of 4 Mr. Lukasik discussed the Village's communications and marketing needs, as well as the need to bring the Human Resources position to a more competitive range. President Pro Tem Mullinix asked questions regarding the Police and Fire costs, including personnel increases and equipment investments. Discussion continued. Mr. Lukasik reviewed budgeted expenditures by category, which included: • Personnel: $15,986,869; 68.18% of the budget • Operating: $6,169,155, 26.31% of the budget • Debt Service: $1,293,101, 5.51% of the budget Councilmember Bickel commented on overtime increases over the past few years in the Public Works Department. Mr. Lukasik stated staff was reviewing the issue and noted his observations from conducting a ride -along on a sanitation truck. Mr. Lukasik shared plans to increase efficiency. Mr. Lukasik discussed planning needs for Lighthouse Point, and discussion ensued regarding consulting fees to realize the vision of the Master Plan. Mr. Lukasik continued reviewing the Village's planning needs, revision of the Land Development Regulations, and associated budgetary line items. Discussion ensued regarding potential grant funding. Mr. Lukasik explained that funds from the Friends of the Library to create a children's area in the library were reflected within the budget. Councilmember Bickel commented on recreation and opportunities for growth utilizing the underutilized resource of the swimming pool. Discussion ensued regarding programs in other communities and budget requirements. FY 2018 SUMMARY OF GENERAL FUND POSITION CHANGES Mr. Lukasik reviewed the budgetary assumptions made related to General Fund personnel, including insurance costs, merit increases, and pension contributions. He discussed proposed position changes, including: • Add 2 FT Police Officers • Add 2 PT Crossing Guards • Add 1 FT Planner FY 2018 FY 2017 Change Full -Time 144 139 +5 Part -Time 69 70 -1 Volunteers 43 52 -9 Contracted Employees (PT) 14 14 No Change Mr. Lukasik reviewed the budgetary assumptions made related to General Fund personnel, including insurance costs, merit increases, and pension contributions. He discussed proposed position changes, including: • Add 2 FT Police Officers • Add 2 PT Crossing Guards • Add 1 FT Planner Minutes of the Village Council Budget Workshop Session held July 19, 2017 Page 4 of 4 • Add 1 FT Public Information Officer • Add 1 FT Accounting Clerk • Delete 1 PT Accounting Clerk • Add 2 PT Library Clerks • Delete 4 PT Library Pages Council and staff discussed priorities and Capital Improvement projects. FY 2018 MILLAGE RATE Mr. Lukasik explained the draft budget was programmed based on a flat millage rate of 7.33. Mr. Lukasik shared a millage table and millage selection options prepared by Ms. Janjua. Mr. Lukasik reviewed the options ahead of the trim hearing, where a maximum millage rate would be set. FY 2018 BUDGET WORKSHOP SCHEDULE Mr. Lukasik shared a calendar for the remaining Budget Workshop meetings and asked for input on priorities to integrate prior to future meetings. Discussion ensued regarding finding ways to meeting the Village's needs long-term. Mayor Aubrey recapped the issues briefly. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 8:36 p.m. Con& ted by Jessica Green, Village Clerk