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08-31-2016 VC BWS-MMINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA AUGUST 31, 2016 Present: David B. Norris, Mayor Doug Bush, Vice Mayor Darryl C. Aubrey, Sc.D., President Pro Tem Robert A. Gebbia, Councilmember Mark Mullinix, Councilmember James P. Kelly, Village Manager Melissa Teal, Village Clerk ROLL CALL Mayor Norris called the meeting to order at 7:00 p.m. All members of Council were present, except Councilmember Mullinix, who was out of town. All members of staff were present, except the Village Attorney. Also present were Finance Director Sarnia Janjua, Police Chief Rick Jenkins, Fire Chief J.D. Armstrong, Community Development Director Denise Malone, Human Resources Directory Britoni Garson, Information Technology Director Michael Applegate, and Purchasing Manager Sharon Swan. PURPOSE OF THE MEETING Mr. Kelly explained the items for review and discussion included: • FY 2017 Summary of Budget Changes to Country Club and General Fund • Community Development Fee Schedule Changes • Capital Improvement Plan (CIP) Recap • FY 2017 Millage Discussion FY 2017 SUMMARY OF BUDGET CHANGES — COUNTRY CLUB AND GENERAL FUND Mr. Kelly outlined changes to the Country Club budget since the last budget meeting, including: • Utilize reserves to balance budget - $45,400 • Updated personnel costs - ($57,491) o Health insurance o Fund "unfunded" position o Update merit and vacant positions through July 31, 2016 o Update Workers' Compensation cost • Decrease estimate for Property and Casualty Insurance - $7,014 Continuing, Mr. Kelly reviewed the updated Country Club budget summary. He explained he had sought informal quotes for the restaurant and received one (1) response. He reviewed the proposal from Randy Epstein. Councilmembers asked questions regarding the process and price, Mr. Kelly explained briefly, and discussion continued regarding the potential for Mr. Epstein taking over the restaurant as of October 1. Vice Mayor Bush expressed concern regarding the bid process, noting he had received calls from residents. Minutes of Village Council Budget Workshop Session held August 31, 2016 Page 2 of 4 FY 2017 SUMMARY OF BUDGET CHANGES — COUNTRY CLUB AND GENERAL FUND continued Mr. Kelly explained the restrictions and the input of legal counsel on the process. Discussion continued regarding the short-term nature of the need, retaining staff, and costs. Consensus was to have Mr. Kelly request a review by legal counsel and then bring an agreement with Mr. Epstein forward to a future meeting for review by Council. Mr. Kelly outlined changes to the General Fund budget, as follows: • Increase Intergovernmental revenue estimate - $26,000 • Decrease Tennis revenue estimate — ($35,000) • Decrease Library State aid revenue estimate — ($1,021) • Increase Recreational Program revenue estimate - $9,715 • Increase Sanitation Refuse Collection revenue estimate - $20,000 • Update personnel costs — ($114,429) o Health insurance o Director of Library salary and benefits o Update merit and vacant positions through July 31, 2016 o Addition of two (2) Sanitation driver positions o Update Workers' Compensation cost o Title change, from Planner to Village Planner • Increase estimate for Accounting and Auditing services — ($3,000) • Decrease budget estimate for Council conference and seminars - $1,070 • Decrease budget estimate for Council travel expenses - $3,000 • Increase budget estimate for Village Attorney — ($45,000) • Decrease budget estimate for Property and Casualty insurance - $50,576 • Decrease budget estimate for Streets and Grounds contractual services - $26,900 • Decrease budget estimate for Sanitation contractual services - $70,000 • Decrease budget estimate for Building inspection services - $15,000 Discussion ensued briefly regarding the Sanitation fee structure. Consensus was to schedule a meeting to review the potential for fees at a meeting in October. Council and staff discussed the need for additional part-time help in the Village Clerk office and options for how to address the issue. COMMUNITY DEVELOPMENT FEE SCHEDULE CHANGES Councilmembers reviewed a chart comparing Community Development fees in North Palm Beach, Palm Beach Gardens, Jupiter, Lake Park, Palm Springs, Tequesta, and Palm Beach County. Councilmembers asked questions regarding the fees and Community Development Director Malone provided clarification. Minutes of Village Council Budget Workshop Session held August 31, 2016 Page 3 of 4 COMMUNITY DEVELOPMENT FEE SCHEDULE CHANGES continued Mrs. Malone discussed proposed changes to the open permit research fee in the Building Department and reviewed the refund process. Discussion continued on the equity and appropriateness of individual fees. Mrs. Malone reviewed several proposed changes to the fee schedule for Code and Planning. Councilmember Mullinix suggested fees should be more directly tied to the size of the development. Vice Mayor Bush stated he thought fees should be consolidated or revised to encourage development. Discussion continued regarding the process and fee structure, as well as transparency and streamlining the process. Councilmembers reviewed the fee schedule line by line and discussed costs versus fees, applicable sections of Code, and example projects. TEN-YEAR CIP SUMMARY Mr. Kelly reviewed the 10 -year CIP summary for FY 2017 through FY 2026, explaining this was the first year the Village had taken the approach to front -load the plan in this way. Discussion ensued regarding which purchases would be covered by grant funding and the source to be used for matching funds. Mr. Kelly reviewed the General Fund Capital Outlay scheduled for FYI by department, as follows: • Police - $78,400 o Vehicle Replacement - two marked units - $78,400 • Information Technology - $136,000 o LPR Cameras - $46,000 o Village -wide phone system - $90,000 • Public Works - $58300 o Vehicle replacement / machinery and equipment - $503,000 ■ Handheld Retroreflectometer - $11,000 ■ Pavement milling attachment for 5570 Bobcat - $12,000 ■ Sanitation collection truck - $240,000 ■ Sanitation service vehicle - $240,000 o Improvements - $80,000 ■ Village sidewalks and crosswalks - $30,000 ■ SSV storage structure - $50,000 • TOTAL - $797,400 Minutes of Village Council Budget Workshop Session held August 31, 2016 Page 4 of 4 FY17 MILLAGE DISCUSSION Mr. Kelly reviewed the Millage Rate. Mr. Kelly stated the FY17 rolled back rate was 6.8572 and the FY17 tentative Millage Rate included in the Village Manager's proposed budget was 7.3300. Mr. Kelly stated his recommendation was to retain the FY17 tentative Millage Rate of 7.3300 which would result in a total ad -valorem of $12,868,838 and represents an increase of $846,617 over the FYI ad -valorem, or a 6.89 percent increase Discussion ensued regarding CIP transfer and options for the Millage Rate. Consensus was to move forward with the tentative Millage Rate with the agreement to discuss options for reduction at a future meeting. ADJOURNMENT There being no further business to come before the Council, the meeting adjourned at 8:22 p.m. t Com, l�ted by Jessica Green, MMC, Village Clerk