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08-10-2022 VC BWS-MPresent: ROLL CALL MINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA AUGUST 10, 2022 Deborah Searcy, Mayor David B. Norris, Vice Mayor Susan Bickel, President Pro Tem Darryl C. Aubrey, Sc.D., Councilmember Mark Mullinix, Councilmember Chuck Huff, Interim Village Manager Leonard G. Rubin, Village Attorney Jessica Green, Village Clerk Mayor Searcy called the meeting to order at 6:00 p.m. All members of Council were present. All members of staff were present. All Department Directors were present. Mr. Huff outlined the agenda for the evening, explaining the discussion would include the proposed Country Club budget, General Fund budget, and a discussion of Taxable Value and Millage Rate. FY 2023 BUDGET HIGHLIGHTS Mr. Huff shared highlights of the FY 2023 budget, including: • Budget is based on Millage rate of 7.05 (no increase over FY 2022) • General Fund budget is balanced with: o $75,000 available in Council Contingency (FPE Union Contract negotiations, etc.) o $679,800 transfer to General Fund CIP o $482,550 transfer to Country Club • Country Club budget is balanced with: o $382,550 transfer from General Fund for Pool and Tennis operations o $100,000 transfer from General Fund for Renewal and Replacement • The budget provides for: o Capital improvements o Replacement of essential (capital) equipment and vehicles o Employee salary and benefit cost increases / pay study implementation o Minimum wage implementation of $13.50 for part-time employees o Maintains and enhances the Village's current level of service. Amenities and quality of life programs remain fully funded in FY 2023. FY 2023 TOTAL BUDGET SUMMARY Category FY 2022 Budget FY 2023 Budget % Increase/ $ Increase/ Decrease Dccrcase General Fund $26,628,407 $29,235,910 9.79% $2,607,503 Country Club $6,096,069 $7931400 19.99% $1,218,811 Stormwater $518,112 $500,000 -3.50% ($18,112) Utility Fund Grand Total $3392429588 $37,0509790 11.46% $398089202 Village Council Budget Workshop Session held August 10, 2022 Page 2 of 4 Category FY 2022 Budget FY 2023 Budget % Increase/ $ Increase/ -- Budget Budget Decrease Decrease Personnel $1800,714 $20,553,094 9.32% $1,752,380 Operating $11,431,026 $139141,910 14.97% $19710,884 Debt Service $292829736 $2,327,786 1.97% $459050 Capital Outlay $728,112 $1,028,000 41.19% $29908 Grand Total $3392429588 $3790509790 11.46% $398089202 Mr. Huff provided an overview of the FY 2023 budget. He noted the line for Operating Budget included contingency and transfers. Positions FY 2022 Budget FY 2023 Budget # Increase/ Decrease Part -Time 109 110 +1 Full -Time 150 154 +4 Total 259 264 +5 FY 2023 COUNTRY CLUB BUDGET SUMMARY Category FY 2023 FY 2022 % Increase/ $ Increase/ Budget Budget Decrease Decrease Golf Fees $3,30000 $2,510,000 31% $790,000 Golf Shop revenues $66800 $462,500 44% $205,000 Driving Range revenues $477,600 $375,000 27% $10200 Membership revenues $1,139,700 $1,070,500 6% $695200 Restaurant revenues $36500 $32800 11% $37,000 Tennis revenues $705,480 $596,300 18% $109,180 Pool revenues $15300 $11700 31% $36,000 Interest revenues $0 $109000 -100% ($10,000) GF Transfer revenues $482,550 $378,550 27% $10400 Appropriated retained earnings $0 $0 -100% ($227,319) Miscellaneous $23,550 $221203 13% $29650 Total Revenues $793149880 $690969069 20% $192189811 Total Expenses $793149880 $690969069 20% $192189811 Mr. Huff continued with a breakdown of Country Club revenues and expenses budgeted, breaking it down by Golf, Tennis, Pool, Admin and Grounds, and Food and Beverage. Discussion ensued regarding repair and maintenance of facilities. Finance Director Samia Janjua answered questions and provided clarification as needed. Mayor Searcy noted potential improvements to the Tennis program. Discussion ensued about the self -sustainability of the program. Village Council Budget Workshop Session held August 10, 2022 FY 2023 GENERAL FUND BUDGET SUMMARY Category Ad -Valorem Taxes Total Revenue Public Safety Leisure Services Transfers Out Total Expenses FY 2023 Budget FY 2022 Budget % Increase/ Decrease Page 3 of 4 $ Increase/ Decrease $19,860,848 $17,615,577 12.75% $21245,271 $29,235,910 $26,628,407 9.79% $2,607,503 $11,963,978 $10,517,083 13.76% $1,446,895 $2,893,594 $2,351,797 23.04% $541,797 $1,162,350 $1,0389550 11.92% $123,800 $29,2359910 $2696289407 9.79% $296079503 Mr. Huff continued with a breakdown of General Fund revenues and expenditures budgeted, breaking it down by General Government, Public Safety, Public Works, Community Development, Leisure Services, and Debt, Transfers, and Other. Mayor Searcy asked for clarification on the line item for promotional activities. Finance Director Samia Janjua reviewed the costs, including an increase in the cost of the newsletter and ongoing cost-cutting efforts. Police Chief Jenkins addressed questions regarding the use of drones and associated laws. Discussion ensued regarding fuel prices and the impact on the Public Works budget, followed by a discussion of electric vehicles. Councilmembers discussed staffing levels contemplated within the budget and needs in various departments. Vice Mayor Norris asked for clarification on the difference between budgeted and actual in FY 2022. Mrs. Janjua explained there had been an increase in the number of transfers required. Discussion continued. FY 2023 TAXABLE VALUE AND MILLAGE SELECTION • Millage Rate: $7.05 mils (no increase over FY 2022) • Gross Taxable Value: $2,965,412,110 ($341,967,249 or 13.04% increase over FY 2022) • Budgeted Ad Valorem: $19,860,848 ($2,245,271 or 12.75% increase over FY 2022) Mr. Huff explained staff had proposed a Millage Rate of 7.05 mills and discussed alternate options. Vice Mayor Norris commented on the increase in budget year over year. Mr. Huff stated he and staff were working on ways to streamline processes and decrease costs. Discussion continued on ways to control increasing expenses. Vice Mayor Norris asked for a higher level of detail in the budget presentation. Mayor Searcy agreed. Discussion ensued regarding materials to share with Council. Village Council Budget Workshop Session held August 10, 2022 Page 4 of 4 FY 2023 TAXABLE VALUE AND MILLAGE SELECTION continued CMr. Huff asked whether Council was prepared to sign off on the Country Club portion of the proposed budget, noting time constraints associated with being prepared for the snowbird season. Mayor Searcy asked whether the Golf Advisory Board had been consulted on the Golf budget. Mr. Huff stated they would be meeting the following week. Discussion continued regarding potential fee increases in Pool and Golf. COUNCIL CONSENSUS Council consensus was in favor of setting the tentative FY 2023 Millage Rate at 7.05. NEXT BUDGET WORKSHOP The next Budget Workshop Session will be dependent upon the results of the Golf Advisory Board meeting on August 15tH If needed, a meeting will be held Thursday, August 18, 2022. ADJOURNMENT With no further business to come before the Council, the meeting was adjourned at 7:25 p.m. Jessica Green, MMC, Village Clerk