07-15-2015 B WS-MPresent:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 159 2015
Robert A. Gebbia, Mayor
David B. Norris, Vice Mayor
Doug Bush, President Pro Tem
Darryl C. Aubrey, Sc.D., Councilmember
Mark Mullinix, Councilmember
Jim Kelly, Village Manager
Melissa Teal, Village Clerk
Mayor Gebbia 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 Samia Janjua was present.
PURPOSE OF THE MEETING
Mr. Kelly explained the meeting would include a general overview of the Fiscal Year 2015 and
an overview of the Fiscal Year 2016 proposed budget and Millage Rate.
FY 2015 THIRD QUARTER REVIEW
Mr. Kelly reviewed the third quarter budget for the Country Club. Mr. Kelly reported an increase
in revenue of $183,000, no equipment issues, and that the range and rounds of golf were doing
well. Food and Beverage revenue was down $82,000 due to increased services and hours of
operation. Mr. Kelly stated that he anticipated a better gain during the fourth quarter. Council
requested additional information to better understand the shortfall.
Discussion ensued regarding a decrease in wages and the distribution of wages between
departments for staffing coverage.
FY 2016 PROPOSED BUDGET OVERVIEW
Mr. Kelly reviewed the summary of the proposed budget for FY 17, beginning with an overview as follows:
GENERAL FUND
Mrs. Janjua explained that General Fund revenue is currently on track and that departments are
operating within their budgets.
Council reviewed and discussed the tax distribution schedule and discounts.
Mrs. Janjua stated the General Fund expenses were tracking favorably at 72%. Mrs. Janjua
explained that some departments reflect an increase in expenses due to upfront costs. They were
as follows:
• Council
o Audit
Minutes of Village Council Budget Workshop Session held July 15, 2015 Page 2 of 3
GENERAL FUND continued
• Attorney
o Union Negotiations
• City Cleric
o Election
• Police Department
o Overtime expenses
• Public Safety
o Renovation
• Public Works
o Administration Software
o Sanitation on target despite staffing shortages
• Building Department
o Position Changes
o Revenue exceeds expenses by 3.2%
Mr. Kelly discussed proposed position changes, including:
• General Fund
o Add one (1) Administrative Coordinator — Building Department (full-time)
o Add one (1) Administrative Assistant — Shared between Human Resources/Finance
(full-time)
o Add one (1) HR Specialist (part-time)
o Add one (1) Driver/Operator — Sanitation Department (full-time)
o Change status to exempt for two (2) employees — Finance Department
• Country Club
o Add one (1) Food and Beverage Director (full-time, next FY)
Council discussed miscellaneous revenues for the County Club. Mrs. Janjua stated that the golf
cart lease expires in December 2015, and the sale of the cart will be reflected as cost neutral.
Mr. Kelly was currently reviewing options to either purchase or lease a new cart, which will be
discussed further at another workshop.
• Expenses
o Membership projected to increase
o Rounds projected to decrease
o Increasing membership fees
o Increase in charge card fees/further discussion expected regarding collecting
processing fee
Mrs. Janjua reported that State revenue estimates were still pending and that there may be more
favorable changes forthcoming.
Discussion ensued regarding vehicle purchases and whether to purchase them outright or to utilize
lease purchase financing. Lease purchase financing may be used for larger purchases, such as the
new ambulance. Extensive discussion ensued regarding interest rates and incurring debt.
Minutes of Village Council Budget Workshop Session held July 15, 2015 Page 3 of 3
GENERAL FUND continued
Mrs. Janjua discussed Contract Services in detail by department. Mrs. Janjua explained that utility
estimates were based on current trend, fuel estimates were based on consumption during the
current fiscal year. Mrs. Janjua added that there were no anticipated changes to attorney's fees,
solid waste or professional services. Estimates for health insurance and property and casual
coverage were still pending.
Discussion ensued regarding items listed under repairs and maintenance and if road repairs were
included. Council expressed concern regarding a proposed Treasure Coast purchase in the amount
of $250,000. Mr. Kelly explained that these were preliminary numbers, and that estimates were
still pending for several items.
FY 2016 MILLAGE RATE
Mr. Kelly explained his proposal was a rate of 7.571 mils, which was less than last year and
included a transfer of $656,000 to the Capital Improvement Plan (CIP).
Extensive discussion ensued regarding public perception. Mr. Kelly said that the Village was
required by Statute to declare a preliminary millage rate. Mr. Kelly explained that he expects the
number to decrease, however, several estimates were still outstanding due to the timing of the
budget process. Mr. Kelly confirmed that the Village was still in the preliminary stages of the
budget preparation process. Council discussed further concerns about a proposed Treasure Coast
purchase of $250,000, the use of reserve funds, and whether road repairs were included in the
budget. Mr. Kelly explained that these topics would be defined over the next month at more formal
workshops. Mrs. Janjua stated that this was a part of the planning process and that a lot can change
over the coming months.
Mr. Kelly recommended a tentative date for the first Public Hearing of September 10, 2015, and
September 24, 2015 for the second Public Hearing. Discussion ensued regarding flexibility related
to dates for additional budget workshops and public hearings.
Further discussion continued regarding funding capital projects included the proposed budget.
Mrs. Janjua provided some clarification. Mr. Kelly said that there is more work to do and that
better projections would be available in August.
Consensus was to approve the proposed Public Hearing dates of September 10, 2015, and
September- 24201 -5 -and -the -preliminary millage rate of 7.571 as proposed by the Village -Manager.___--_-_
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:55 p.m.
K
Cbm�leted by Jessica Green, MMC, Village Clerk