07-15-2009 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
. JULY 15, 2009
Present: David B. Norris, Mayor
William Manuel, Vice Mayor
Darryl Aubrey, Sc.D., President Pro Tem
Edward M. Eissey, Ph.D., Councilman
T.R. Hernacki, P.E., Councilman
Jimmy Knight, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Norris called the meeting to order at 7:00 p.m. All members of Council were present,
except President Pro Tem Aubrey, who arrived at 7:09 p.m. All members of staff were present,
except the Village Attorney. Community Development Director Chuck Huff, Finance Director
Samia Janjua, and Public Works Director Wiley Livingston were present.
CURRENT FINANCIAL CONDITIONS
Mr. Knight detailed the present level of revenue over expenses for the FY 2009 General Fund
budget. Mr. Knight reported that the current Unreserved Unappropriated Fund Balance
represents 45% of the proposed General Fund budget for FY 2010.
FY 2010 GENERAL FUND BUDGET OVERVIEW
Mr. Knight distributed copies of the FY 2010 General Fund Budget Overview presentation, and
proposed a budget totaling $17,883,886, which is a reduction of $1,189,306 or 6.24% from the
FY 2009 General Fund budget. Mr. Knight advised the proposed budget was prepared using a
tentative millage rate of 6.9999 mills.
Mr. Knight provided informatian on the Government Finance Officers Association (GFOA)
Distinguished Budget Presentation Award Program. Mr. Knight reported on plans to submit the
FY 2010 budget for this award.
REVENUES
Mr. Knight detailed a decrease of $168,778,908 in total assessed taxable value, which equals a
decrease of approximately $1.2 million in ad valorem revenue. Mr. Knight reported the
combined total of all other revenue sources is projected to be $6,756,961, or $558,734 less than
the current year. Mr. Knight provided details on the various revenue sources as a percentage of
the budget, as well as total revenues by category and department for FY 2009.
Mr. Knight briefly reviewed potential alternate revenue sources, such as afire-rescue service fee,
garbage collection fee, storm water fee, and sidewalk and street repair/maintenance fee.
• MILEAGE
Mr. Knight discussed options for the FY 2010 millage rate, explained the rolled-back rate, and
gave a comparison of the millage rates in surrounding municipalities.
Minutes of Village Council Budget Workshop Session held July 15, 2009 Page 2 of 3
EXPENSES
• Mr. Knight discussed the anticipated increase in health insurance costs and detailed the responses
received to the Request for Proposals issued by the Gehring Group on behalf of the Village.
Mr. Knight highlighted certain operating costs and reported total operating costs of $3,745,647
for FY 2010.
Mr. Knight reviewed the capital plan, which totals $547,712 for FY 2010.
PERSONNEL
Mr. Knight detailed strategies to manage personnel costs, which account for almost 72% of the
overall budget.
Mr. Knight reviewed proposed personnel changes, which would result in a $131,068 decrease
from FY 2009 personnel costs.
Council discussed the proposed change in the Pool Manager position from Village employee to
Independent Contractor.
Mr. Knight proposed a 3% market adjustment instead of a cost of living adjustment (COLA), and
advised the market adjustment would be based on the COLA determined by other area
municipalities, in order to remain competitive with surrounding cities. Mr. Knight noted that if
none of the local municipalities increase compensation, there would be no market adjustment.
Mr. Knight noted the proposed budget provides for 0-5% merit increase for General and FPE
employees and Step Plan increases for Police and Fire employees.
Discussion took place on pension plans. Mr. Knight noted that because the General Employees
Pension Plan is funded at 58%, the actuary recommended increasing the Village's pension
contribution by 1.10%, which will require the Village to contribute 23.72% of employees'
salaries. Mr. Knight reported the Police and Fire Pension Plan is funded at 85%, resulting in a
decrease of 2% in the Village's required contribution, which will be 16.26% of employees'
salaries for FY 2010.
DEBT SERVICE
Mr. Knight detailed debt and other non-departmental service related costs, which account for
$1,013,026 of the budget, including an anticipated loan payment of $430,000.
Mr. Knight advocated combining the budgeted $430,000 loan payment with $2.2 million from
reserves in order to pay off the last remaining General Fund loan. Mr. Knight advised that this
measure would make the General Fund debt-free, while still providing reserves totaling 35% of
the proposed budget.
CONSENSUS ITEM
• Council discussed millage rate options and items that could be included in the budget. By
consensus, a tentative millage rate of 7.4114 (FY 2010 rolled-back rate) was forwarded to the
7/23/09 Regular Session for Council action.
Minutes of Village Council Budget Workshop Session held July 15, 2009 Page 3 of 3
QUARTERLY INVESTMENT REPORT
Mr. Knight distributed the Investment Performance Review prepared by the Village's investment
advisor, PFM Asset Management, LLC for the quarter ended 6/30/09.
Mr. Knight highlighted the following components of the document: a market report, including
2-year review of U.S. Treasury yields and U.S. job market; details on the investment portfolio,
including strategy, composition, maturity, and asset allocation; and account statement for the
month ending 6/30/09.
NEXT BUDGET WORKSHOP DATE
Mr. Knight announced the next Budget Workshop on 7/22/09, for the purpose of reviewing the
proposed Country Club budget.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:07 p.rn.
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Melissa Teal, CMC, Village Clerk