HomeMy WebLinkAbout07-20-2023 VC BWS-MPresent:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 20, 2023
David B. Norris, Mayor
Susan Bickel, Vice Mayor
Darryl C. Aubrey, Sc.D., President Pro Tem
Mark Mullinix, Councilmember
Deborah Searcy, Councilmember
Chuck Huff, Village Manager
Philippa Davis, Deputy Village Clerk
Mayor Norris called the meeting to order at 7:00 p.m. Members of staff were present and most
Department Directors were present.
Mr. Huff outlined the agenda for the evening, explaining the discussion would include the
proposed preliminary budget for FY 2024. Mr. Huff noted two (2) workshops were scheduled to
review the budget in more detail and by department.
FY 2024 BUDGET HIGHLIGHTS
Mr. Huff shared preliminary highlights of the FY 2024 budget, including:
• Budget is based upon a flat Millage Rate of 7.00 mils.
• The General Fund budget is balanced with:
o $700,194 transfer to General Fund Capital Improvement Plan (CIP)
o $450,000 transfer to Country Club
o $725,000 transfer top Special Projects Fund
• The Country Club budget is balanced with:
o $350,000 transfer from General Fund for Pool and Tennis operations
• $250,000 for Pool operations
• $100,000 for Tennis operations
o $100,000 transfer from General Fund for Renewal and Replacement
• Budget provides for:
o Capital improvements
o Replacement of essential (capital) equipment and vehicles
o Employee salary and benefit cost increases
o Maintains and enhances the Village's current level of service
o Amenities and quality of life programs remain fully funded in FY 2024
Village Council Budget Workshop held July 20, 2023 Page 2 of 7
FY 2024 PRELIMINARY BUDGET SUMMARY
Category
General Fund Country Club Stormwater Total
Personnel $20,039,957 $2,522,939 0 $22,562,896
Operating $9,210,048 $3,971,061 0 $13,181,109
Capital Outlay 0 $1,048,000 $500,000 $1,548,000
Debt Service $1,894,734 $234,825 0 $2,129,559
Transfer: CIP $700,194 0 0 $700,194
Transfer: Spec Projects $725,000 0 0 $725,000
Transfer: Country Club $450,000 0 0 $450,000
Contingency 0 0 0 0
Reserve — Future 0 $250,000 0 $250,000
Capital Improvements
1 Grand Total $33,019,933 $8,026,825 $500,000 $41,546,758
Councilmember Searcy asked for additional detail on the Stormwater Fund.
Mr. Huff and Mrs. Janjua clarified.
PERSONNEL
Position Type FY 2023 General Fund Country Club Total Chance
Adopted
Full -Time 156 143 12 155 -1
Part -Time 108 61 62 123 +15
President Pro Tem Aubrey asked for clarification on the additional 15 part-time employees.
Mr. Huff noted summer camp needs had increased, modifications in building inspection and other
departments to accommodate the Village's needs. Discussion ensued briefly.
FY 2024 PERSONNEL COST ASSUMPTIONS
Description FPE PBA IAFF NU
Base Wage Increase (10/1) 5% 4% 4% N/A
Merit Increase 1%, 2%, 3% Step Plan Step Plan 4% Average
(scale = 0-6%)
Health and Dental Insurance Medical = No Increase
Dental + 3% Increase
HSA Contribution Family = $3,000
Single = $1,500
Workers' Compensation 5%
ICMA = 15% P/F P/F Pension ICMA = 15%
Pension Contributions G/E Pension = Pension = = 16% G/E Pension =
18% 16% 18%
Total Annual Base Pay Increase for all five
Council members = $23,400
Several vacant positions have not been funded to allow for
vacancy savings.
Village Council
Vacancies
Village Council Budget Workshop held July 20, 2023 Page 3 of 7
President Pro Tem Aubrey asked whether the vacant positions were funded in the budget.
Mr. Huff explained some positions, like the Human Resources Director, were funded, and others
such as the Deputy Village Manager position were left unfunded at this time.
Councilmember Mullinix inquired as to whether the Human Resources Director and Assistant
Human Resources Director positions were being reviewed for possible combination, or for being
outsourced.
Mr. Huff stated it was a small department, but he believed there was an element of Human
Resources, which was needed internally.
Vice Mayor Bickel expressed the possibility of losing a personal touch if the Human Resources
Department was outsourced.
Discussion continued, and consensus was to explore options.
FY 2024 BUDGETED DEBT SERVICE
Description
Vehicle Lease
Clubhouse Loans (Two
loans: $8.9m and $6.1m)
Initial Golf Course Loan
($4,893,673)
2018 Golf Course
Restoration ($1.7m)
Total
General Fund Country Club
$600,000
$1,294,734
0
0
$1,894,734
0
0
Total
$600,000
$1,294,734
$199,295 $199,295
$35,530 $35,530
$234,825 $2,129,559
Mr. Huff reviewed information on the Village's loans and highlighted that the $4.89 million loan
from 2006 would be paid off this Fiscal Year.
Description
Year Issued
Term
Interest Rate
Maturity
$8.9m $6.1m
2017
15 years
3.19%
June 2032
2017
8 years
3.78%
June 2025
COUNTRY CLUB SUMMARY 2023 vs 2024
Category FY 2023 FY 2024
Personnel
Operating
Capital Outlay
Debt Service
Contingency
Reserve — Future
Capital Improvements
Total
$2,390,532
$3,808,659
$508,000
$433,689
0
$174,000
$7,314,880
$2,522,939
$3,971,061
$1,048,000
$234,825
0
$250,000
$8,026,825
$4.89m $1.7m
2006 2018
18 years 10 years
4.11% 2.09%
April 2024 September 2028
% Increase/ $ Increase/
(Decrease) (Decrease)
5.54% $132,407
4.26% $162,402
106.30% $540,000
-45.85% ($198,864)
0 0
43.68% $76,000
9.73% $711,945
Village Council Budget Workshop held July 20, 2023 Page 4 of 7
Vice Mayor Bickel asked for clarification on the large increase in Capital Outlay budgeted.
Mr. Huff stated he would provide a breakdown later in the presentation.
FY 2024 COUNTRY CLUB PRELIMINARY BUDGET SUMMARY
Category
Revenue
Charges for Services:
Golf
Pool
Tennis
Food and Beverage
Misc. Revenues
Other Sources
Total Revenue
Expenditures
Golf
Pool
Tennis
Food and Beverage
Club Administration
Clubhouse Grounds
Non -Departmental
Debt Service
Reserves
Total Expenditures
FY 2023 Budget FY 2024 Budget
$5,392,850
$209,700
$858,480
$365,000
$6,300
$482,550
$7,314,880
$4,269,079
$450,392
$924,737
$20,000
$387,200
$630,783
$25,000
$433,689
$174,000
$7,314,880
$6,097,325
$265,000
$841,500
$343,000
$30,000
$450,000
$8,026,825
$4,919,644
$531,350
$917,392
$22,000
$492,762
$629,952
$28,900
$234,825
$250,000
$8,026,825
% Increase/
(Decrease)
13.06%
26.37%
- 1.98%
-6.03%
376.19%
- 6.75%
9.73%
15.24%
17.98%
- 0.79%
10.00%
27.26%
- 0.13%
15.60%
-48.85%
43.68% 1
9.73% 1
Councilmember Mullinix asked whether the Food and Beverage line included the delayed
payments. Discussion ensued briefly regarding Food and Beverage at the Clubhouse.
Vice Mayor Bickel inquired if swim lessons would continue at the Country Club. Country Club
General Manager Beth Davis stated that swimming lessons would continue.
GENERAL FUND SUMMARY 2023 vs 2024
Category FY 2023 FY 2024
Personnel
Operating
Capital Outlay
Debt Service
Transfer: CIP
Transfer: Special Projects
Transfer: Country Club
Contingency
Total
$18,281,343
$7,949,795
$20,000
$1,894,097
$679,800
0
$482,550
$240,682
$29,548,267
$20,039,957
$9,210,048
0
$1,894,734
$700,194
$725,000
$450,000
0
$33,019,933
% Increase/ $ Increase/
(Decrease) (Decrease)
9.62% $1,758,614
15.85% $1,260,253
- 100.00% ($20,000)
0.03% $637
3.00% $20,394
100.00% $725,000
-6.75% ($32,550)
- 100.00% ($240,682)
11.75% $3,471,666
Village Council Budget Workshop held July 20, 2023 Page 5 of 7
FY 2024 GENERAL FUND BUDGET SUMMARY
Category
FY 2023 Budget FY 2024 Budget
1 Revenue Sources
1 Taxes $22,982,970 $25,870,506
Permits, Fees, Special $2,990,500 $3,182,500
Assessments
Intergovernmental $1,730,142 $1,933,229 11.74%
Revenue
Charges for Services $1,550,075 $1,563,950 0.90%
Judgments, Fines, $92,950 $89,450 -3.77%
Forfeitures
Misc. Revenues $201,630 $380,298 88.61%
Other Sources 0 0 0%
Total Revenue $29,548,267 $33,019,933 11.75%
Expenditures
General Government $3,798,695 $4,165,355 9.65%
Community $1,695,666 $2,025,854 19.47%
Development
Public Safety $12,142,013 $13,469,559 10.93%
Public Works $5,721,170 $6,153,832 7.56%
Leisure Services $2,893,594 $3,435,405 18.72%
Reserves $240,682 0 -100%
Transfers $1,162,350 $1,875,194 61.33%
Debt Service $1,894,097 $1,894,734 0.03%
Total Expenditures $29,548,267 $33,019,933 11.75%
% Increase/
(Decrease)
FIVE-YEAR CIP
1
12.56%
6.42%
Mr. Huff reviewed the key assumptions for the 5-Year Capital Improvement Plan (CIP) and the
cash flow summary. He discussed FY 2024 proposed CIP projects totaling $7,502,684 as follows:
• Country Club ($1,040,000):
o Submersible Swim Wall Dividers - $90,000
o Wash Plant — Environmental Center - $750,000
o Pond Stabilization - $125,000
o Clubhouse Improvements - $75,000
• Information Technology ($60,000):
o Backup Appliance
• Police ($258,300):
o Radio Replacement (annual contribution)
• Recreation ($1,364,384):
o Anchorage South Seawall - $137,000
o Boat Ramp Renovation - $230,000
o Veteran's Park Enhancement - $50,000
o Osborne Park Basketball Lighting - $177,384
o Anchorage Park Pathway, etc. - $270,000
o Community Center Enhancement - $500,000
• Public Works ($4,780,000)
Village Council Budget Workshop held July 20, 2023 Page 6 of 7
o East Alley Wall Replacement - $200,000
o Vehicle Replacement - $82,000
o Asphalt Resurfacing - $450,000
o Bridge Improvement (Prosperity Farms) - $200,000
o Bridge Replacement (Lighthouse) - $540,000
o Public Safety Building (A/C Automation) - $185,000
o Public Works Emergency Generator - $198,000
o Public Safety Building Emergency Generator - $425,000
o Clubhouse Emergency Generator - $800,000
o Lakeside Park Bulkhead Replacement - $1,000,000
o Sidewalk Repairs - $200,000
o Stormwater Repair and Replacement - $500,000
Discussion ensued regarding potential funding sources, including grants and low interest
borrowing opportunities, and about the details of individual projects. Mr. Huff, Police Chief
Richard Jenkins, and Finance Director Samia Janjua provided additional clarification.
STORMWATER UTILITY FUND
Type of Land Use
Single-family Residential
(Parcel area <= 7,079 sq. ft.)
Single-family Residential
(Parcel area >7,079 sq. ft but
< 15,475 sq. ft)
Single-family Residential
(Parcel area >= 15,475 sq. ft)
Condominium
Multi -family Residential
Nonresidential
Monthly Rate
(0.61 ERU) x (per ERU rate)
(0.97 ERU) x (per ERU rate)
(1.53 ERU) x (per ERU rate)
(0.22 ERU per residential
unit) x (per ERU rate)
(1.00 ERU) x (parcel IA /
5,550 sq. ft.) x (per ERU rate)
Annual Rate
(0.61 ERU) x (per ERU rate)
x 12
(0.97 ERU) x (per ERU rate)
x 12
(1.53 ERU) x (per ERU rate)
x 12
(0.22 ERU per residential
unit) x (per ERU rate) x 12
(1.00 ERU) x (parcel IA /
5,550 sq. ft.) X (per ERU
rate) x 12
(1.00 ERU) x (parcel IA / (1.00 ERU) x (parcel IA /
5,550 sq. ft.) X (per ERU 5,550 sq. ft.) x (per ERU rate)
rate) x 12
ERU = $7.78 monthly / $93.36 annually
FY 2024 MILLAGE DISCUSSION
• Millage Rate: $7.00 mils (no increase over FY 2022)
• Gross Taxable Value: $3,375,264,084 ($422,254,792 or 14.30% increase over FY 2023)
• Budgeted Ad Valorem: $22,445,506 ($2,725,515 or 13.13% increase over FY 2023)
Mr. Huff explained staff had proposed a Millage Rate of 7.00 mils, and there would be an
opportunity for discussion regarding the complexities of the millage at the budget workshops. Mr.
Huff highlighted the effort staff had put into creating a balanced budget that planned for the future
and did not include fluff.
Village Council Budget Workshop held July 20, 2023 Page 7 of 7
NEXT BUDGET WORKSHOP
Mr. Huff outlined the budget calendar briefly. Budget Workshops are scheduled for August 16 and
August 31. The first reading and public hearing of the FY 2024 budget is scheduled for September
14, and the second hearing is scheduled for September 28.
ADJOURNMENT
With no further business to come before the Council, the meeting was adjourned at 8:00 p.m.
Jes$a Green,`M Village Clerk