08-25-2010 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
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AUGUST 25, 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 7:00 p.m. All members of Council were present. All
members of staff were present, except the Village Attorney. Finance Director Samia Janjua,
Community Development Director Chuck Hufl; Human Resources Director Mary Kay McGann,
and Information Technology Director Michael Applegate were present.
Mr. Knight distributed copies of the FY 2011 General Fund Budget -August 25, 2010 presentation
concerning the departments of Community Development, Human Resources, Finance, and I.T.
CAPITAL IMPROVEMENT PROJECTS
Pursuant to Council direction at its 8/11/2010 Budget Workshop, Mr. Knight provided estimated
costs for these projects:
• SW Community Sidewalks $303,000
• Updating Street Signs $900,000
• Memorial Park $150,000
• Grills at Anchorage Park (4) $1,025
• Grills at Lakeside Park (2) $575
Due to the minimal cost, Council agreed to have grills installed at the parks now.
Additional discussion on capital improvement projects will be held following the end of
hurricane season.
COMPENSATION OVERVIEW
• 0% market or cost-of-living (COLA) adjustment
• 0 - 5% merit increase, per collective bargaining agreement
• 20% Village defined benefit pension contribution (15.78 required plus 4.22 catch-up
provision, down 3.72% from last year) and 6% employee contribution from date of hire
• 15% defined contribution pension plan (mandatory for newly hired non-union eligible
employees)
• Discussion ensued concerning the actuary's recommendation that the General Employees
Pension plan adopt revised mortality tables and reduce the assumed rate of return from 8% to 7%,
and when these changes would take place. Mr. Knight stated the changes would begin in 2011,
but implementation would be incremental.
Minutes of Village Council Budget Workshop Session held August 25, 2010 Page 2 of 3
COMMUNITY DEVELOPMENT
• • no personnel changes (vacant part-time code enforcement officer position is funded at
mid-point; vacant permit & licensing tech position is unfunded)
• projected revenues total $837,211 for FY 2011, including $142,225 in cell tower revenue,
$230,000 in business tax receipts, and $425,000 in building permits
• combined Community Planning, Building, and Code Enforcement budget expenditures
total $819,557 for FY 2011, an increase of 2.3% or $18,141 over FY 2010
Mr. Knight reported an increase in building permits is anticipated. Discussion took place
concerning unpermitted work. Mr. Huff and Mr. Knight explained the process and described the
penalty fees that can be imposed when work is undertaken without the required permits.
COMMUNITY PLANNING
expenses for FY 2011 total $222,239, an increase of 2% or $4,770 over FY 2010
no capital expenses in FY 2011.
BUILDING
• expenses for FY 2011 total $481,185, an increase of 3.2% or $14,763 over FY 2010
Mr. Knight reviewed the 5 Year Capital Improvement Plan and advised that software for the
Building Department would need replacing in future, at an estimated cost of $100,000. Council
consensus was to add this item to the list'of capital projects list to be considered in November 2010.
Mr. Knight reviewed the Building Department Cost Allocation Worksheet, pursuant to Section
533.80, Florida Statutes.
CODE ENFORCEMENT
• expenses for FY 2011 total $116,133, a decrease of 1.2% or $1,392 from FY 2010
• no capital expenses in FY 2011
HUMAN RESOURCES
expenditures were at 76.11 % of the FY 2010 budget for the 3rd Quarter ending 6/30/10
no personnel changes
expenses for FY 2011 total $236,627, an increase of 2.3% or $5,363 over FY 2010
Mr. Knight discussed a possible change in office staffing to provide more coverage and reduce cost.
Discussion ensued on organizational structure, pay grades, and salary ranges.
INFORMATION TECHNOLOGY
• expenditures were at 69.13% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• increase in part-time hours from 20 hours per week to 30 hours per week
• expenses for FY 2011 total $298,339, a decrease of .60% or $1,788 from FY 2010
• capital expenses for FY 2011 total $9,707 for a digital data backup device
• Mr. Knight noted the many and varied tasks performed by the Village's IT Department, which
include maintaining our computerized telephone system, 15 servers, Public Safety 911, radio,
computer, and CAD systems, surveillance cameras, three point-of--sale systems, website design
and maintenance, wireless communications at the Library and Country Club, network backup,
email, voice messaging, and the Library computer lab.
Minutes of Village Council Budget Workshop Session held August 25, 2010 Page 3 of 3
FINANCE
• expenditures were at 70.52%% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• • personnel change: accountant position eliminated and accounting clerk position added
• expenses for FY 2011 total $526,897, an increase of 1% or $5,445 over FY 2010
GENERAL SERVICES -VILLAGE HALL
• expenses for FY 2011 total $123,2187, a decrease of .55% or $686 from FY 2010
DEBT AND OTHER
• debt service line item to be reduced from $548,691 to zero, upon adoption of ordinance
amending FY 2010 to pay off last remaining debt service instrument
• Council and Village Manager contingency to be reduced, based on overall budget reduction
CONSENSUS CHANGES
Mr. Knight reviewed ongoing budget adjustments, which result in a net budgetary impact of $735,346:
• proposed millage rate set at roll-back rate of $7.4802 mils
• change in revenue assumptions resulting in an increase of $28,179
• Police & Fire pension contribution reduced from 18.5% to 17.86%, a reduction of $24,307
• Public Works Street Maintenance capital reclassified to "K" account (reduction of $110,464)
• Library part-time pay correction (reduction of $24,057)
• Debt Payoffresulting in a reduction of $548,691
• $228,135 in Contingency (1.25% oftotal budget)
Mr. Knight compared the FY 2011 Budget, as proposed, versus the FY 2010 Budget, and the
FY 2011 Budget, as adjusted, versus the FY 2010 Budget.
Mr. Knight advised that the lowest possible millage rate is 6.9723, which would be an increase in
millage of 1%; however, the budget would be reduced by 3% or $550,866 and taxes would be
reduced by 6.8%, or $745,736.
Mr. Knight reported that since 2007, the budget has been reduced by $1.3 million and taxes by
$997,000; including additional reductions proposed for FY 2011, the total budget reduction
would be almost $2 million, with a total reduction in taxes of $1.7 million.
CONSENSUS ITEMS
• proceed with installation of grills at Anchorage Park and Lakeside Park
• add Building Department so$ware to capital projects list for consideration in November
NEXT BUDGET WORKSHOP DATE
Mr. Knight reminded Council that due to the Executive Session at 7:00 p.m. on 9/1/2010, the
next Budget Workshop (recap and millage discussion) would start at 8:00 p.m.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:40 p.m.
Melissa Teal, CMC, Village Clerk