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08-04-2010 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA • AUGUST 4, 2010 Present: William L. Manuel, Mayor Darryl C. Aubrey, Sc.D., Vice Mayor David B. Noms, 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 7:00 p.m. All members of Council were present. All members of staffwere present, except the Village Attorney. Finance Director Samia Janjua, Public Safety Director Robert O'Neill, Fire Chief J.D. Armstrong, Public Works Director Wiley Livingston, and Community Development Director Chuck Huff were present. The purpose of the meeting was to review the Public Safety and Public Works Department Budgets for FY 2011. Mr. Knight distributed copies of the FY 2011 General Fund Budget -August 4, 2010 presentation. Mr. Knight noted that, subsequent to discussions with the auditors, there has been a change in capitalization of certain items to reflect purchases of individual items exceeding $2,500, rather than cumulative purchases. Additionally, there have been certain actuarial changes regarding the Village's required pension contribution. A list of all the changes, including those made by the Council, will be provided to Council before adoption, and reflected in the final budget. Pursuant to Council's request at its 7/14/10 meeting, Mr. Knight provided a comparison of millage rates, service fees, non-ad valorem assessments, and Special Taxing Districts in surrounding municipalities. CAPITAL IMPROVEMENT PROJECTS Pursuant to Council's request at its 7/14/10 meeting, Mr. Knight provided a collective list, by category, of the capital improvement projects proposed by individual councilmen. Regarding installation of sidewalks in the Southwest Neighborhood, Mr. Knight reported that an informal survey showed 60% are in favor, 12% are opposed, and others could not be reached. Mr. Knight related concerns raised by the Village Engineer regarding elevations and drainage. Further research will be done before an appropriation for this project is brought to Council for approval The Village Council will review the collective capital projects list with a view to possible funding through the Unreserved, Undesignated Fund account. A rough estimate of the various project costs was requested, if possible. Mr. Knight asked councilmen to provide him with their top-five list of projects. CAPITAL PROJECTS FUND ("K" ACCOUNTS Mr. Knight advised that the Capital Projects Fund is project specific and involves multi-year • projects, with appropriations that are carried over to succeeding years, such as the canal dredging project, Tennis Center project, or pool renovation project. Mr. Knight provided Council with a list of projects to be closed by 9/30/2010 and open projects to be carried over to the next fiscal year. Mr. Knight reported a balance of $522,537.25 in the Capital Projects Fund. Mr. Knight reviewed use of the Streets Maintenance account for the 10-year roadway maintenance and street overlay project. Minutes of Village Council Budget Workshop Session held August 4, 2010 Page 2 of 4 CAPITAL PROJECTS FUND ("K" ACCOUNTSI continued Mr. Knight noted the street overlay project was completed, and would begin again after a 2-3 year • hiatus. Staff estimates the number of streets to be done and the cost for asphalt and construction services, with any project savings carried over to the next year. Mr. Knight advised there are street projects planned, which qualify for use of this account, if Council elects to fund them through the Street Maintenance Capital Projects account; otherwise, these projects need to be added back to the FY 2011 budget, which would increase the total budget appropriation by $132,000. PUBLIC SAFETY DEPARTMENT • combined Law Enforcement, Fire Rescue, and General Services-Public Safety Facility budget expenditures were at 72.15% of the FY 2010 budget for the 3rd Quarter ending 6/30/10 • in FY 2010, 31 ¢ of the property tax dollar goes to North Palm Beach, with 20¢ to Public Safety • police and fire employees receive step increases as required by collective bargaining agreements • no cost-of-living (COLA) or market adjustment • 4% increase in health insurance projected • 17.86% Village pension contribution (reduced from 18.5% projected at time of budget preparation, resulting in $24,307 savings) • no personnel changes • projected revenues for FY 2011 total $412,030, including $250,000 in ambulance fees and $90,000 in court fines • combined Law Enforcement, Fire Rescue, and General Services-Public Safety expenses for FY 2011 total $7,253,743, an increase of 4.2% or $291,885 over last year LAW ENFORCEMENT • expenses for FY 2011 total $4,430,286, an increase of 5% or $212,878 over last year • capital expenses in FY 2011 total $73,449 to replace 3 vehicles Mr. Knight noted an increase in contractual services, due to CALEA recertification. The Law Enforcement Division of the Public Safety Department was awarded national accreditation in 2008 by the Commission on Accreditation for Law Enforcement Agencies (CALEA) and must be recertified every three years in order to remain accredited. Mr. Knight and Chief O'Neill reviewed capital expenditures and the 5 Year Capital Improvement Plan. Discussion ensued on the total number of Public Safety vehicles and the estimated life cycle of vehicles. It was noted that replacement of the patrol boat engines should be added to the 5 Year Capital Improvement Plan. Mr. Knight and Chief O'Neill reviewed the advantages of repainting the current marked patrol fleet, including decals, to a black and white paint scheme. The cost to repaint 18 vehicles is estimated at $10,800. Council approved the change to black and white patrol vehicles. FIRE RESCUE • expenses for FY 2011 total $2,672,823, an increase of 4% or $99,231 over last year • no capital expenses Mr. Knight noted an increase in contractual services, due to the new medical transportation billing • company. Mr. Knight advised the cost for this service is based on 10% of collected revenue. GENERAL SERVICES -PUBLIC SAFETY • no personnel costs associated with this budget • operating costs for FY 2011 total $150,634, including $127,384 for utilities • no capital expenses Minutes of Village Council Budget Workshop Session held August 4, 2010 Page 3 of 4 PUBLIC WORKS • combined Administration, Sanitation, Facility Services, Streets, Grounds & Parks, and • Vehicle Maintenance budget expenditures were at 71% of the FY 2010 budget for the 3rd Quarter ending 6/30/10 • in FY 2010, 31 ¢ of the property tax dollar goes to North Palm Beach, with 20¢ to Public Safety • General and FPE employees receive 0-5% merit increase as required by collective bargaining agreements • no cost-of-living (COLA) or market adjustment • 4% increase in health insurance projected • 20% Village pension contribution (15.78% required plus 4.22% catch-up provision) • no personnel changes • projected revenues for FY 2011 total $374,736, including $350,000 in commercial waste disposal fees • combined Administration, Sanitation, Facility Services, Streets, Grounds & Parks, and Vehicle Maintenance expenses for FY 2011 total $4,322,376, a decrease of 6% or $264,960 from last year PUBLIC WORKS ADMINISTRATION • expenses for FY 2011 total $363,326, an increase of 6% or $20,069 over last year • no capital expenses FACILITY SERVICES • expenses for FY 2011 total $719,552, an increase of 5% or $34,219 over last year • capital expenses in FY 2011 total $85,000 to erect a perimeter wall around Public Works Facility Discussion took place regarding the decrease in personnel costs, which Mr. Knight explained is due to outsourcing custodial services in FY .2010. VEHICLE MAINTENANCE • expenses for FY 2011 total $369,193, an increase of 4% or $15,571 over last year • no capital expenses Regarding the 5 Year Capital Improvement Plan, it was noted that OSHA might require upgrading of the vehicle lift in the future. SANITATION • expenses for FY 2011 total $1,492,496, a decrease of 1.4% or $20,950 from last year • no capital expenses Mr. Knight noted personnel costs have decrease due to downsizing three sanitation positions last year. Mr. Knight reviewed the 5 Year Capital Improvement Plan, and noted plans to purchase new garbage trucks in 2012, 2013, and 2014. • Mr. Knight reviewed certain issues with the jitneys, including the need for employees to attend a motorcycle training class and possess a motorcycle license in order to drive the jitneys. Mr. Livingston reported on methods to refurbish the existing fleet and challenges in obtaining a utility vehicle with a similar turning radius. Minutes of Village Council Budget Workshop Session held August 4, 2010 Page 4 of 4 STREETS AND GROUNDS • expenses for FY 2011 total $1,377,809, a decrease of 19% or $313,896 from last year • Mr. Knight reviewed the 5 Year Capital Improvement Plan and noted the projected total for FY 2012, due to restarting of the street overlay project. Capital projects for FY 2011 include replacing the service alley wall on the east side of U.S. Highway 1 from Lighthouse Drive to Yacht Club Drive. Sidewalks in the Southwest Neighborhood will be funded with reserves. Mr. Knight reviewed capital projects that would be funded through the Streets Maintenance "K" account, which include storm water improvement project, repair of sink holes along bulkhead, and asphalt overlay of the service alley, at a projected cost of $132,180. Mr. Knight recommended additional projects that could be accomplished using these funds, such as the ongoing sidewalk replacement project and resurfacing of the Country Club parking lot (60/40 split with Country Club), which total $110,464. Council consensus was to remove all the suggested capital projects from the FY 2011 Capital Improvement Plan and fund them through the Streets & Grounds Maintenance Capital Projects Fund. CONSENSUS ITEMS • repaint Public Safety patrol vehicles • storm water improvement project, repair of sink holes along bulkhead, asphalt overlay of the service alley, sidewalk replacement project, and 60% of the cost to resurface the Country Club parking lot are to be funded through accumulated savings in the Capital Projects Fund -Streets account, and not budgeted in the General Fund as capital outlay NEXT BUDGET WORKSHOP DATE The next Budget Workshop will be held on 8/11/2010 to review the Parks and Recreation, Library, Council, Clerk, Attorney, and Manager Departments. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 9:00 p.m. Melissa Teal, CMC, Village Cler