07-22-2009 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
• JULY 22, 2009
Present: David B. Norris, Mayor
William Manuel, Vice Mayor
Darryl Aubrey, Sc.D., President Pro Tem
Edward M. Eissey, PhD., 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 Councilman Hernacki, who arrived at 7:10 p.m. All members of staff were present, except
the Village Attorney. Finance Director Samia Janjua and Golf Director Mike Gray were present.
CURRENT FINANCIAL CONDITIONS
Mr. Knight reviewed golf course memberships and rounds played, as well as the year-to-date
summary of revenues and expenses, and current contingency and Unreserved Unappropriated
Fund Balance. Mr. Knight gave a comparison of the projected revenue for FY 2009 and revenue
as of 7/15/2009.
FY 2010 COUNTRY CLUB BUDGET OVERVIEW
Mr. Knight distributed copies of the Country Club Budget Fiscal Year 2010 presentation.
PERSONNEL
Mr. Knight did not recommend any personnel changes for FY 2010.
REVENUES
Mr. Knight noted that revenue is derived from memberships, greens fees, cart rentaUwalking fees,
driving range, pro shop, and food and beverage, with membership, greens fees, and cart rentaUwalking
fees comprising 82% of the $3,402,777 in total revenue projected for FY 2010.
Mr. Knight did not propose any changes in membership fees, cart rental fees or walking fees.
Council briefly discussed the 20% resident cardholder and member guest discount.
Mr. Knight detailed the four categories or seasons of fees, which now incorporate both greens
fees and cart rental. Mr. Knight reviewed recommended 9-Hole and 18-Hole rates for walk-in
play. Mr. Knight explained how the projected revenue assumptions were derived.
Mr. Knight provided a breakdown of projected revenue in each of five categories: memberships,
• greens fees, cart fees/walking fees, driving range, and other (restaurant lease, golf lessons,
special events/tournaments, merchandise sales, and interest earnings.) Discussion took place
regarding special events/camps and interest earnings. Mr. Knight explained the changes from
the FY 2009 to FY 2010 budget in these areas.
Minutes of Village Council Budget Workshop Session held July 22, 2009 Page 2 of 3
EXPENSES
• Mr. Knight reviewed expense categories of personnel, operating, capital, and debt service
totaling $3,174,940, which is $206,487 less than FY 2009. Mr. Knight noted this total provides
for operating income/contingency of $227,837.
Mr. Knight provided a comparison of expenses by department and function.
Brief discussion took place concerning the relocation of trees from Northlake Boulevard medians.
Mr. Knight advised the budget includes funding for additional trees.
Mr. Knight detailed employee benefits and certain operating and capital expenditures.
Mr. Gray expounded on planned capital expenditures for the driving range, including retrofit of
the ball machine, purchase of a new picker cart, and extension of the synthetic turf. Discussion
ensued on driving range issues.
A question was raised concerning changes in the categories of Other Operating Costs and
Insurance & Other from FY 2009 to FY 2010. Mr. Knight will provide details to Council.
DEBT SERVICE
Mr. Knight reported on the two outstanding loans, and noted the loan for renovation of the
restaurant will be paid offin November, 2010 (FY 2011.)
Discussion ensued on the loan-for renovation of the golf course. It was suggested that staff
investigate options such as converting the loan from a variable rate to a fixed rate, or buying the
loan through the Village General Fund and re-selling it to the County Club at a rate lower than
the current variable rate. Council discussed the pros and cons of buying the loan. It was noted
that this would provide larger interest earnings to the General Fund than are being received
currently, while reducing the interest rate to the Country Club and possibly decreasing the length
of the loan. Other issues included a potential rise in interest rates, the reduction in reserves, and
the investment policy regarding liquidity of funds. Mr. Knight stated that Mrs. Janjua will check
with the auditors as to whether this is allowed, and if appropriate, will forward the matter to the
Audit Committee for review.
MEMBERSHIP INSTALLMENT PLAN
Mr. Knight proposed reducing the payment plan for memberships from four installments to
three, with the total dues to be paid before the end of the high season. By consensus, Council
approved this proposal.
DONATION OF SHADE STRUCTURE
Mr. Gray detailed a proposal to erect a tiki but shade structure outside the pro shop near the bag
drop-off area, which would provide shelter for employees. Mr. Knight reported that Chickee
Huts by Advanced Construction Corp. made a written offer to donate a 10 x 10 foot tiki but at no
charge to the Village. Council consensus was to accept this offer.
• MISCELLANEOUS COUNTRY CLUB BUDGET ITEMS
Discussion took place concerning league play, special events, shotguns, and food and beverage.
Minutes of Village Council Budget Workshop Session held July 22, 2009 Page 3 of 3
CONSENSUS ITEMS
• • reduce membership payment plan to three installments
• accept donation of tiki but from Chickee Huts by Advanced Construction Corp.
NEXT BUDGET WORKSHOP DATE
Mr. Knight distributed the FY 2010 budget document to Council and briefly reviewed its content
and composition. Mr. Knight reported that, pursuant to Council discussion at its 7/15/09 budget
workshop, the proposed budget now reflects a millage rate of 7.4114 and a $635,000 lump sum
payment to the General Employees Pension Plan.
Mr. Knight announced the next Budget Workshop on 8/5/09, for the purpose of reviewing the
departmental budgets for Public Safety and Public Works.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:45 p.m.
Melissa Teal, CMC, Village Clerk
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