04-14-2010 VC SP-MMINUTES OF THE SPECIAL SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
APRIL 14, 2010
• Present: William L Manuel, Mayor
Darryl C. Aubrey, Sc.D., Vice Mayor
David B. Norris, President Pro Tem
T.R. Hernacki, P.E., Councilman
Robert A. Gebbia, Councilman
Jimmy Knight, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Manuel called the meeting to order at 7:05 p.m. All members of Council were present.
All members of staff were present, except the Village Attorney. Finance Director Samia Janjua
and Community Development Director Chuck Huff were present.
GOALS AND OBJECTIVES
The purpose of the Special Session was to discuss the Council's goals and objectives for the upcoming
fiscal year, in order to provide guidance to administration regarding preparation of the FY2011 Budget.
Mr. Knight distributed a copy ofhis presentation entitled Village Council FY2011 Goals & Objectives.
FY 2010 MID-YEAR BUDGET REVIEW
Mr. Knight presented amid-year review of the General Fund and Country Club budgets. During
discussion of the Country Club budget, Mr. Knight noted cost control measures, including
deferring certain capital expenses to year-end and leaving vacant positions unfilled. Mr. Knight
reported the current unrestricted fund balance at $434,212 and contingency at $234,434, but noted
the necessity of replacing the Earman River pump, which is an unanticipated capital expense.
Regarding the General Fund budget, Mr. Knight advised that 81.95% of revenue has been collected,
and expenditures total 47.64%. Mr. Knight compared tax distributions from 2008-2010 and
noted that property tax revenue has been reduced by $947,230.32 since FY2008. Mr. Knight
reported 91.7% of ad valorem revenue for FY 2010 has been collected.
INVESTMENT POLICY
Mr. Knight gave a status report on the Village Investment Policy. Mr. Knight reported the transfer of
a total of $7,909,872 for investment as core funds, representing 44% of the FY2010 General Fund
budget. Mr. Knight reviewed the market value of the core investment portfolio. The 2009 Audit
Report (CAFR) found the Village's investments in accordance with the Village Investment Policy.
FY 2011 BUDGET
Mr. Knight reviewed the actions taken to reduce costs while increasing service levels, including
reducing the workforce by 37 positions, organizational restructuring, paying off loans, and
utilizing alternate revenue sources, such as acquiring grants to help fund construction of the new
tennis center, Anchorage Park improvements, and renovations to the pool deck at the Country Club.
• Discussion took place concerning alternate revenue sources, such as afire-rescue service fee,
garbage collection fee, stormwater fee, and sidewallc/street repair and maintenance fees. Mr. Knight
estimated the cost of the study needed to implement aFre-Rescue service fee at $40,000.
Brief discussion was held regarding the proposed Palm Beach County one-cent sales tax to
provide a source of funding for fire-rescue services.
Minutes of Village Council Special Session held April 14, 2010 Page 2 of 4
Council discussed the level of sanitation service currently provided at an annual cost of $1.5 million,
as well as implementing a garbage collection fee and methods of collecting the fee, such as
• inclusion on the monthly Seacoast Utility Authority water bills. Council consensus was to
explore this issue further. Additionally, it was requested that Mr. Knight provide information on
the breakdown between ad valorem taxes and service fees in surrounding cities.
Mr. Knight enumerated the budget challenges in FY2011, including further devaluation of
properties, legislative restrictions on millage rate adjustments, employee health care expenses
and pension obligations, and anticipated commercial property foreclosures. Mr. Knight reviewed
the projected decrease in assessed property values and applied it to the millage and budget.
GENERAL FUND RESERVES
Mr. Knight compared reserve amounts as a percentage of the budget and the number of months of
operating funds represented. Discussion on the appropriate amount of reserves ensued. Mr. Knight
discussed the audit of FEMA reimbursements payments. Council suggestions included funding
capital projects with reserves instead of loan financing and implementing a depreciation reserve.
Mr. Knight offered suggestions for the use of reserve funds, including repayment of the final
outstanding debt service. Mr. Knight discussed funding of the General Employees Pension Plan,
currently at just above 58%, and reported the actuary recommends 80%. NIr. Knight estimated a
5% - 6% increase may be realized by eliminating the lump sum benefit. Mr. Knight reported
Village contributions as follows: 15% to the Defined Contribution Plan and 26% to the Defined
Benefit Plan and suggested allocating the difference (9%) to the Defined Benefit Plan.
Discussion took place on potential infrastructure projects including sidewalks for the western
community and upgrades to Village signage. It was noted that the street overlay program would
start over in three years. Suggestions were made to investigate installation of a sanitary sewer
system in the Southwest Neighborhood, conduct a feasibility study on closing Southwest
Neighborhood roads (Conroy, Honey, Lorraine) at Alternate AlA to alleviate problems with cut-
through traffic, evaluating commercial property over 40 years old with a view to bringing it up to
code, and consider erecting a T-dock on Robalo Court.
STRATEGIC PLANNING
Council reviewed its analysis of Strengths, Weaknesses, Opportunities, and Threats (SWOT),
deleted "water shortage", added "aging and deteriorating buildings", and concluded as follows:
STRENGTHS
Affluent community
Strong financial reserves
Infrastructure in good condition
Taken steps to reduce costs
Generally supportive residents
Unified Council
High quality staff
Advisory Boardslcitizen participation
Location/waterways
Tradition - 2nd & 3rd generation residents
OPPORTUNITIES
Seek additional funding sources: Service fees, Grants
Seek to influence State legislature
Pursue further cost efficiencies
Improve relationship with business community
Annexation
WEAKNESSES
Shrinking tax base
Shrinking sources of non-ad valorem revenues
State budgets in the red
State pressures on municipal taxing authority
Limited retail
No anchor or destination
THREATS
Economy in decline
State and County pressures on home-rule authority
of municipalities
Increase in unfunded mandates
Increased foreclosures of residential property
Under-funded retirement accounts
Hurricane threats
Aging and deteriorating buildings
Minutes of Village Council Special Session held April 14, 2010 Page 3 of 4
MISSION STATEMENT AND CORE VALUES
Mr. Knight reviewed the Mission Statements of the Village Council and Village Manager, and
Core Values of the Village. By consensus, Council approved these Statements:
VILLAGE COUNCIL MISSION STATEMENT
To provide the highest quality of service to the residents of North Palm Beach in the most
efficient, effective, and fiscally responsible manner by providing sound, clear policy guidance
that encourages, promotes, protects, and improves the welfare of the Village of North Palm
Beach, ensuring that North Palm Beach remains "the best place to live under the sun."
VILLAGE MANAGER MISSION STATEMENT
The Manager is committed to providing the most current and proven effective administration and
operational methodologies to improve service delivery while reducing costs and meeting the ever
changing challenges in municipal government. His goal is to establish and maintain a respected
and trusted public service organization through equity, transparency, honor, integrity,
commitment, and stewardship.
CORE VALUES
The Village ofNorth Palm Beach values
• Ethics and Integrity
• Leadership and Vision
• Open Communication
• Respect for Differences
• Dedication
• Teamwork
• Exemplary Customer Service
COUNCIL'S FY 2011 GOALS AND OBJECTIVES
Council discussed and prioritized its goals and objectives for FY2011 as follows:
1. Protect the Financial Integrity of the Village in a Difficult Economic Environment
a. Seek alternative sources of funds including grants
b. Seek to influence Florida legislature in areas of unfunded mandates, taxation, and revenue sharing
c. Continue to advance abusiness-friendly atmosphere in the Village and work with the
Northern Chamber of Commerce to encourage new businesses and promote economic development
d. Pursue debt-free status in the Village
e. Actively pursue annexation opportunities where and when available
f. Address Pension Fund unfunded liabilities
2. Maintain a High Quality of Life in the Village
a) Improve and maintain Village waterways as a unique Village asset
b) Maintain the highest quality of public safety services through national accreditation of its law
• enforcement component and through fire rescue level of service partnerships
c) Encourage high standards for the overall appearance of the community
d) Enhance communication with residents through mediums such as the Village Newsletter and website
e) Improve communication and response to the public; encourage suggestions from the public
f) Maintain service levels in the face of declining revenue sources
Minutes of Village Council Special Workshop Session held Apri114, 2010
Page 4 of 4
3. Maintain and improve all Recreational Facilities of the Village
a) Maintain high level of appearance and maintenance of Country Club facilities (including
tennis and swimming) and all Village parks
b) Seek ways to improve the use of parks by residents
c) Actively promote resident and non-resident use of the Country Club facilities
d) Further improve Country Club activities and related services
e) Enhance golf membership through increased member events
f) Enhance tennis and swim operations at the Country Club
4. Enhance the Spirit and Participation of our Community
a) Encourage Village resident participation on Boards, programs and events
b) Improve communication with businesses; encourage participation of businesses in Village events
c) Enhance and promote organized youth sport leagues and programs within the Village
d) Continue Village volunteer service similar to the very successful "Support Our Troops" program
5. Improve the Overall Appearance of the Village
a) Continue improvement of code compliance and education with special emphasis towards the
abatement of nuisance and abandoned properties
b) Continue support of the Northlake Boulevard Corridor Task Force to bring about uniform
beautification
c) Maintain uniformity of Village property design, colors and signage
d) Maintain high standards of overall appearance throughout the Village including
commercial, residential, village-owned properties and roads.
Mr. Knight reviewed the Budget Workshop schedule, and noted that Council's final goals and
objectives would be presented to departments during the staff budget retreat on May 5, 2010.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:55 p.m.
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Melissa Teal, CMC, Village Clerk
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