07-21-2022 VC BWS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
C
JULY 219 2022
Present: Deborah Searcy, Mayor
Susan Bickel, President Pro Tem
Darryl C. Aubrey, Sc.D., Councilmember
Mark Mullinix, Councilmember
Andrew D. Lukasik, Village Manager
Leonard G. Rubin, Village Attorney
Jessica Green, Village Clerk
Absent: David B. Norris, Vice Mayor
ROLL CAT,T,
Mayor Searcy called the meeting to order at 7:00 p.m. All members of Council were present except
Vice Mayor Norris. All members of staff were present. All Department Directors were present.
Mr. Lukasik explained he would be providing a cursory overview, and staff would provide a more
detailed workshop in the future. He noted there was still opportunity to make decisions and tailor
the budget to the Village's needs.
FY 2023 BUDGET HIGHLIGHTS
Cv-nernl Fund
• Millage rate: 7.05 (no increase over FY 2022)
o General Fund Budget increased $2.6 million or 9.8% to $29.2 million
o Ad Valorem Revenue increased $2.2 million or 12.75% to $19.8 million
• General Fund CIP Transfer: $679,800
• Country Club Transfer: $482,550
• Contingency: $75,000
Stormwater Utility Fund
• Stormwater Utility Fund non -ad valorem assessment totals approximately $500,000.
o $7.78 per month or $93.36 per year for each Equivalent Residential Unit (ERU).
■ Each ERU equals up to 5,550 square feet.
■ Most single-family residents will pay $90.11 per year
Country Club
• Country Club Budget is balanced with:
o $382,550 transfer from General Fund for Pool and Tennis Operations
o $74,000 transfer from General Fund for Clubhouse renewal and replacement fund
o $26,000 transfer for Administrative/Grounds
o $100,000 contribution from Golf for Clubhouse renewal and replacement fund
o $590,000 from Golf to support overall Clubhouse operations, recommend be
applied toward Golf's Clubhouse debt
Village Council Budget Workshop Session held July 21, 2022 Page 2 of 7
Mr. Lukasik reviewed high-level budgetary notes from each area, noting Council may want to
review the recommendation to apply the Golf contribution to Clubhouse operations toward Golf's
Clubhouse debt and make a policy determination.
FY 2023 PRELIMINARY BUDGET SUMMARY — GENERAL FUND
• Millage rate: 7.05
• Personnel: $18,162,562
• Operating: $7,921,901
• Debt Service: $1,894,097
• Capital Outlay: $20,000
• General Fund CIP Transfer: $679,800
• Contingency/Reserve: $75,000
• Transfer to Club: $482,550
• Total Budget: $29,235,910
• Personnel:
o General Fund: Full -Time 142, Part -Time 53
o Country Club: Full -Time 12, Part -Time 57
o Total: Full -Time 154, Part -Time 110
Mr. Lukasik explained the budget provided for capital improvements, replacement of essential
equipment and vehicles, employee salary and benefit cost increases, and maintains and/or
enhances the Village's level of service.
PERSONNEL COST HIGHLIGHTS
Mr. Lukasik discussed the FY 2023 personnel costs as proposed, including:
• Total Personnel Costs - $20,553,094 (an increase of $1,752,380 or 9.32% over FY 2022)
o Payroll - $14,819,576 (72.10%)
o Health Insurance - $2,3 65,18 8 (11.51%)
o Pension - $1,840,230 (8.95%)
o Payroll Taxes - $1,111,517 (5.41%)
o Workers Comp Insurance $348,430 (1.70%)
o Life & LTD Insurance - $68,153 (0.33%)
• 154 Full -Time Positions (an increase of four over FY 2022)
• 110 Part -Time Positions (an increase of one over FY 2022)
Mr. Lukasik explained the approach taken to budgeting personnel was not as conservative as in
past years, with additional consideration toward cost savings of open positions. Brief discussion
ensued regarding the assumptions.
Mr. Lukasik reviewed the personnel highlights, including:
• One new Police Officer
• Replacing a part-time Human Resources Specialist with a full-time Human Resources
Specialist — Talent Management
• Replacing a part-time Administrative Assistant in Fire Rescue with a full-time
Administrative Coordinator
• Replacing a part-time Administrative Assistant with a part-time Recreation Assistant
Village Council Budget Workshop Session held July 21, 2022 Page 3 of 7
PERSONNEL COST HIGHLIGHTS continued
• Adding an additional part-time Park Ranger
• Full-time Shop Attendant replacing part-time attendants in Golf
• Full-time Head Pool Lifeguard replacing part-time lifeguards
Mr. Lukasik explained Police Chief Jenkins had recommended no less than two (2) new Police
Officers, with a preference of four (4), to maintain current level of service, including traffic
saturation and concierge services residents were accustomed to.
Councilmember Mullinix discussed resident concerns with safety and stated he thought it was
important to find room in the budget to accommodate the Chief's requests.
Salary range adjustment
o PBA/IAFF step plan increases (as negotiated):
■ Base wage increase: 4%
■ Step increase: 3.5%
o FPE (in negotiation):
■ Merit increase: 4% (estimate)
o Non-union:
■ Pay study implementation: 8% increase
■ Merit increase: 4% (estimate — proposed to increase max to 6%)
■ No merit increases for part-time Tennis Instructors recommended
• Health insurance:
0 13% increase
o No change to carrier/coverage
o No change to Village's contribution to Health Savings Accounts ($1,500/$3,000)
• Workers' Compensation: 10% increase
• Pension Contribution
o ICMA:15%
o Police and Fire Pension: 12%
o General Employee Pension: 15%
Mr. Lukasik provided a brief history on the payment of Tennis Instructors and explained
challenges with keeping the program financially sustainable. He noted the Village is near the top
end on payment of its pros as compared to other programs in the area. Mr. Lukasik explained a
change in the way part-time employees are contemplated in the budget in order to match
operations.
Discussion ensued regarding wage increases, associated analysis, and the status of the market.
DEBT SERVICE
Mr. Lukasik reviewed the budgeted Debt Service, including:
• Vehicle Lease - $600,000 (General Fund)
• Clubhouse Loans - $1,294,097 (General Fund)
( • Initial Golf Course Loan - $398,159 (Country Club)
`�-
2018 Golf Course Restoration - $35,530 (Country Club)
o Total - $2,327,786
o General Fund Total - $1,894,097
o Country Club Total - $433,689
Village Council Budget Workshop Session held July 21, 2022 Page 4 of 7
FY 2023 BUDGET HIGHLIGHTS — COUNTRY CLUB
• Golf
o Assume same volume of activity (47,500 rounds)
o Capital investments include pond stabilization and wash plant ($450,000)
• Pool and Tennis
o Part-time employees budgeting based upon coverage/hours needed, not positions
o Full-time Head Life Guard in lieu of some part-time hours
o Tennis Instructors — recommend policy change to exempt from merit pay process
• Renewal and Replacement Funding
o Golf. $100,000
o General Fund: $74,000
o Food and Beverage: $0
FY 2023 PRELIMINARY BUDGET SUMMARY — COUNTRY CLUB
Category
FY 2023
FY 2022 Budget
% Increase/
$ Increase/
Bum
ecrease
ecrease
Golf Fees
$3,300,000
$2,510,000
31%
$790,000
Golf Shop revenues
$668,000
$462500
44%
$205,000
Driving Range revenues
$477,600
$375,000
27%
$10200
Pool revenues
$15300
$11700
31%
$36,000
GF Transfer revenues
$482550
$378550
27%
$104,000
Total Revenue
$7,3149880
$690969069
20%
$192189811
Personnel Costs
$2,390532
$2,043420
17%
$347,112
Capital Outlay
$508,000
$20000
154%
$30800
Reserves
$17400
$100,000
74%
$7400
Total Expenses
$793149880
$690969069
20%
$192189811
Mr. Lukasik continued with a breakdown of Country Club revenues and expenses budgeted,
reviewing expenses by both function and department.
Mr. Lukasik reviewed highlights of the Golf operations budget as follows:
• Operating and Repair and Maintenance Increases
o Fertilization — Brightview contract increasing by $100,000
o Shop Merchandise — increasing $125,000
o Concrete Repairs — increasing $35,000
• Add a Shop Attendant
• Golf Revenue to balance Pool and Tennis budgets, recommend accounting for this transfer
to offset Clubhouse debt liability to General Fund
• Increase in Capital Funding from $200,000 to $450,000
Discussion ensued regarding Golf fees and providing direction to the Golf Advisory Board as to
what Council wanted the fees to cover, how competitive the fees should be, past Council direction
associated with the fees, and the revenue from members versus non-members.
Councilmember Mullinix commented on the mark-up in the Golf shop, asserting it should be
reviewed as a profit center.
Village Council Budget Workshop Session held July 21, 2022 Page 5 of 7
FY 2023 PRELIMINARY BUDGET SUMMARY — COUNTRY CLUB continued
Mayor Searcy noted the pool should also be selling merchandise such as towels and goggles.
Mr. Lukasik reviewed highlights of the Country Club Administrative, Pool, and Tennis operations
budget as follows:
• Reclass Administrative Coordinator to Executive Assistant due to level of responsibility
• Reclass full-time Accounting Clerk to full-time Accountant
• Increase landscape expense to $250,000
• Umbrellas and Chairs: $20,000
• Lighting for employee parking path: $25,000
• Tennis ice machine: $8,000
• Inflatable slide or audio system: $20,000
Mr. Lukasik reviewed provided a preliminary summary of the Country Club budget by profit
center and discussed proposed Golf Membership Fees and Golf Walk -In Rates, followed by a
review of proposed Pool and Tennis Fees.
Discussion ensued regarding the proposal to increase pool fees and making the fees an even
number with tax.
FY 2023 BUDGET HIGHLIGHTS — GENERAL FUND
Mr. Lukasik discussed highlights of the General Fund, as follows:
• Overall increase in the operating budget is $2.6 million, or 9.8%
• Ad Valorem revenues based on a 7.05% Millage Rate
o Nearly $2.2 million in additional Ad Valorem revenue (12.75% increase)
o License and Permits, and Intergovernmental Revenues are budgeted to increase by
more than 10%
• Debt increased due to additional vehicle leases
• Transfer to Capital Improvement Fund (CIP) increased 3%
• Transfer to Country Club increased to $482,550 overall, but decreased for Renewal and
Replacement to $74,000
Mr. Lukasik explained that overall, there was a slight increase in staffing levels, however personnel
expenses were budgeted to increase by 9% due to salary adjustments and benefit cost escalation.
Mr. Lukasik explained additional highlights by department as follows:
Public Works
• Continue with leadership positions restructured slightly: Field Operations Manager and
Facilities Manager
• Continue with the part-time Facilities Maintenance position
• Reclass a Street Maintenance Worker position to Street Foreman
• Increasing landscape maintenance costs by 10% to $962,000
• Miscellaneous increases in SWA fees, diesel, and dumpster replacement
Village Council Budget Workshop Session held July 21, 2022
FY 2023 BUDGET HIGHLIGHTS — GENERAL FUND continued
Internal Services
Page 6 of 7
• Reclass full-time Accountant to full-time Senior Accountant (Finance)
• Reclass full-time Accounting Clerk to full-time Accounting Analyst (Finance)
• Convert part-time Human Resources Specialist to a full-time position (HR)
• Administrative Assistant to Help Desk (IT)
• Part-time Functional Manager (existing) funded to assist with Business Development and
Facilities projects (VM Office)
Parks and Recreation
• Master Plan for Osbourne and Community Center: $60,000
• Athletic Field Maintenance: $200,000
• Building and Grounds Maintenance: increase from $60,000 to $220,000
• Fencing at Community Center
• Playground Maintenance (equipment outside scope)
• Park Staffing — supervisor with two (2) assistants all day
• Replace part-time Administrative Assistant with a part-time Recreation Assistant
• Add a part-time Recreation Assistant
Community Development
• Convert a part-time Administrative Assistant to a part-time Permit Tech
• Convert a Building Inspector position to a Senior Building Inspector
Mr. Lukasik stated the budget did not include funding the need for an additional Code Officer to
serve as supervisor. He noted the department was functioning as well as it could without that
additional person in place.
Police
• Add one (1) Police Officer with equipment for new officer and vehicle
FY 2023 PRELIMINARY BUDGET SUMMARY — GENERAL FUND
Category
FY 2023 Budget
FY 2022 Budget
% Increase/
$ Increase/
(Decrease)
Decrcasc
Ad -Valorem
Taxes
$19,860,848
$17,615,577
12.75%
$2,245,271
Total Revenue
$2992359910
$2696289407
9.79%
$296079503
Public Safety
$11,963,978
$10,517,083
13.76%
$1,44605
Leisure Services
$2039594
$29351,797
23.04%
$541,797
Transfers Out
$1,1629350
$1,038,550
11.92%
$12300
Total Expenses
$2992359910
$2696289407
9.79%
$296079503
Mr. Lukasik continued with a breakdown of General Fund revenues and expenditures budgeted,
reviewing expenses by both function and department.
Discussion ensued regarding whether the Village should focus on diversification of revenue to
become less reliant on ad -valorem taxes.
Village Council Budget Workshop Session held July 21, 2022 Page 7 of 7
STRATEGIC PRIORITIES AND PROJECTS
Mr. Lukasik shared a color -coded list of the Village's Strategic Priorities and Projects, noting those
planned and in process, and discussing the 2023 Capital Outlay by source and the cash flow
summary for the Capital Improvement Plan through 2027. He noted the list included priorities
identified by each of the Councilmembers.
FY 2023 TAXABLE VALUE AND MILLAGE SELECTION
• Millage Rate: $7.05 mils (no increase over FY 2022)
• Gross Taxable Value: $2,965,4121,110 ($341,967,249 or 13.04% increase over FY 2022)
• Budgeted Ad Valorem: $19,860,848 ($2,245,271 or 12.53% increase over FY 2022)
Mr. Lukasik outlined the Village's taxable value growth in comparison to nearby communities.
He explained the Village Manager's proposed Millage Rate was 7.05 mills, setting the maximum
millage rate allowed for the Village. He discussed alternate options and noted the adoption was
tentative and Council could reduce the rate for the final adopted budget and discussion ensued on
the process for adoption.
Mayor Searcy shared that residents had asked her to discuss grant assistance opportunities, rent
increase restrictions, and renovation programs as part of the budget review. Discussion ensued.
Mr. Lukasik noted direction was needed as to how to move forward with employee health
coverage. Discussion ensued.
Eric Gehring with Gehring Group provided detail on the Village's healthcare plan and provided
brief feedback on the plans offered by other communities.
NEXT BUDGET WORKSHOP
The next Budget Workshop Session will be held Wednesday, August 10, 2022.
ADJOURNMENT
With no further business to come before the Council, the meeting was adjourned at 8:57 p.m.
Jes 'ca Green, MMC, Village Clerk