HomeMy WebLinkAbout08-16-2023 VC BWS-MPresent:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 16, 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
Jessica Green, Village Clerk
Mayor Norris called the meeting to order at 7:00 p.m. All members of Council were present. All
members of staff were present. All Department Directors were present.
Mr. Huff outlined the agenda for the evening, explaining that the discussion would include the
proposed preliminary year-end projections, combined budget summary, personnel costs, minimum
wage implementation status, Country Club budget, General Fund budget, five (5) year Capital
Improvement Plan (CIP), and budget recap.
FY 2023 PRELIMINARY YEAR-END PROJECTIONS
Mr. Huff shared preliminary year-end projects for the FY 2023 budget, including:
• Country Club net revenues are anticipated at $278,455.
• General Fund expenditures are projected at 103.07 percent of budget, which may result in
a budget amendment year-end if necessary.
o Overage is attributable primarily to tornado and lightning storm damages.
FY 2024 COMBINED BUDGET SUMMARY
Category
Personnel
Operating
Capital Outlay
Debt Service
Transfer: CIP
Transfer: Special
Projects
Transfer: Country Club
Contingency
Reserve — Future
Capital Improvements
Grand Total
FY 2023
Budget
$20,671,875
$11,758,454
$1,028,000
$2,327,786
$679,800
$0
$482,550
$240,682
$174,000
$37,363,147
FY 2024 Budget
$22,562,896
$13,181,109
$1,548,000
$2,129,559
$700,194
$725,000
$450,000
$0
$250,000
$41,546,758
% Increase/ $ Increase/
(Decrease) (Decrease)
9.15% $1,891,021
12.10% $1,422,655
50.58% $520,000
-8.52% ($198,227)
3.00% $20,394
0.00% $725,000
-6.75% ($32,550)
-100% ($240,682)
43.68% $76,000
11.20% $4,183,611
Village Council Budget Workshop held August 16, 2023 Page 2 of 8
FY 2024 PERSONNEL COSTS
Cate2ory FY 2024 Budget Percentage
Wages $16,015,092 71%
Health Insurance $2,485,092 11 %
Workers' Compensation $496,729 2%
Life/LTD Insurance $72,536 0%
Payroll Taxes $1,203,891 6%
Pension $2,288,956 10%
Total $22,562,896 100%
Mr. Huff highlighted pending expiration of union agreements and reviewed the Village's minimum
wage implementation status. Mr. Huff stated in the Fiscal Year 2024 budget, no full-time position
was below $15 per hour, with the exception of one (1) full-time Golf Teaching Professional who
also has a lesson agreement in place. Mr. Huff explained that part-time employees were on track
for a $15 per hour minimum in FY 2026 (effective October 2025).
FY 2024 COUNTRY CLUB BUDGET SUMMARY
Mr. Huff reviewed accomplishments and new initiatives for the Country Club, including:
• Awarded Distinguished Golf Destination by Boardroom Magazine in partnership with
Forbes Travel Guide for the 3`d year in a row.
• Golf Magazine ranked North Palm Beach Country Club as #20 in the Top 30 Municipal
Courses in America.
Councilmember Searcy emphasized this also positions the golf course as #1 in Florida.
• Mid -Year, Country Club is tracking 14 percent ahead of the same time last year
• Capital Projects completed:
o Golf course pump station, pond repair and stabilization, tee boxes and range
o Tennis court resurfacing phase two (2)
o Pool cabanas
Councilmember Searcy suggested finding a way to advance the funds for the tennis courts to help
the Village attract tournaments.
Discussion ensued briefly regarding options.
Mr. Huff stated that the pool was slated for the next fiscal year while awaiting approvals for swim
walls from Palm Beach County Health Department and State of Florida.
Mr. Huff continued with the Country Club budget summary:
Village Council Budget Workshop held August 16, 2023 Page 3 of 8
Category
FY 2023 Budget FY 2024 Budget
% Increase/
(Decrease)
Charges for Services:
Golf $5,392,850 $6,097,325 13.06%
Pool $209,700 $265,000 26.37%
Tennis $858,480 $841,500 -1.98%
Food and Beverage $365,000 $343,000 -6.03%
Misc. Revenues $6,300 $30,000 376.19%
Other Sources $482,550 $450,000 -6.75%
Total Revenue $7,314,880 $8,026,825 9.73%
Total Expenditures $7,314,880 $8,026,825 9.73%
Mr. Huff continued with a breakdown of Country Club revenues and expenses budgeted, beginning
with Food and Beverage. He outlined the details of the lease with Farmer's Table NPB, LLC,
noting it would be renewable in 2024.
Councilmembers discussed the Farmer's Table lease renewal and current food and beverage sales,
as follows:
2023
Gross Sales 2019 2020 2021 2022 (thru June)
$163,594 $3,336,327 $4,561,747 $4,304,034 $2,336,193
Mr. Huff noted that under the terms of their contract, when gross sales hit $2 million, Farmer's
Table is to pay five (5) percent of gross sales to the Village. Mr. Huff reviewed the proposed golf
membership fees, golf walk-in rates, and projected revenues and expenses.
Councilmember Searcy confirmed that there remains a golf member waiting list.
Allan Bowman, Director of Golf, stated there were 190 golf members and a significant waiting list.
Councilmember Searcy argued for a larger increase to golf fees, citing increasing costs and
continuing demand.
Vice Mayor Bickel, asserted golf is a service to the residents, and that cost should be kept down.
Vice Mayor Bickel stated she was comfortable with a larger increase for non-residents.
Councilmember Mullinix stated that it would be wise to wait until next year and outlined potential
opportunities to increase revenue.
Mayor Norris noted that if membership was headed toward being exclusive to residents, the
resident fees would have to go up.
Discussion continued regarding the proposed golf fee increases and resident versus non-resident
membership considerations.
Mr. Bowman explained the Golf Advisory Board had discussed the subject at length. Mr. Bowman
stated they were trying to be respectful of residents and keep the membership affordable. Mr.
Bowman noted the large number of older residents on fixed incomes. He added that a larger
increase was expected for Fiscal Year 2025 due to contract changes.
Village Council Budget Workshop held August 16, 2023 Page 4 of 8
Councilmember Mullinix highlighted opportunities for upselling, citing his experience at the
Country Club driving range versus a private facility.
Mr. Huff noted there had been a plan in 2012 for food and drinks at the driving range, but it had
been shelved.
Mr. Bowman shared that there were plans to bring drinks and music to the driving range in the
evenings during the winter months.
Vice Mayor Bickel suggested an expansion of items available in the shop to include branded
towels, swim suits, and swim equipment.
Discussion continued.
Mr. Huff continued with a review of the tennis fees, and tennis projected revenues and expenses.
Mayor Norris stated the same comments about demand and increasing rates made about golf could
be made regarding tennis.
Mr. Huff noted tennis runs at a loss and pools are running at a huge loss. Mr. Huff continued with
a review of the proposed pool fee schedule, and projected revenues and expenses followed by
Administration, Debt Services, and cost allocation of construction costs.
Discussion continued. Beth Davis, Country Club General Manager, answered questions and
provided clarification as needed.
FY 2024 GENERAL FUND BUDGET SUMMARY
Category FY 2023 Final FY 2024 Budget % Increase/
Budget (Decrease)
Revenue Sources
Taxes $22,982,970 $25,913,455 12.75%
Permits, Fees, Special $2,990,500 $3,221,500 7.72%
Assessments
Intergovernmental $1,730,142 $1,869,505 '8.06%
Revenue
Charges for Services $1,550,075 $1,533,950 -1.04%
Judgments, Fines, $92,950 $89,450 -3.77%
Forfeitures
Misc. Revenues $201,630 $392,073 94.45%
Other Sources $353,221 $0 0%
Total Revenue $29,901,488 $33,019,933 11.75%
Expenditures
General Government $3,841,543 $4,165,355 9.65%
Community $1,812,046 $2,025,854 19.47%
Development
Public Safety $12,150,349 $13,469,559 10.93%
Public Works $5,818,569 $6,153,832 7.56%
Leisure Services $2,981,852 $3,435,405 18.72%
Reserves $240,682 $0 -100%
Transfers $1,162,350 $1,875,194 61.33%
Debt Service $1,687,080 $1,894,734 0.03%
Total Expenditures $24,914,805 $33,019,933 11.75%
Village Council Budget Workshop held August 16, 2023 Page 5 of 8
Mr. Huff stated staff had done a good job of putting together a package that captured fees, which
were common in other municipalities and were previously missed. Mr. Huff continued with a
discussion of General Fund fee schedule changes for Community Development, Public Works,
Library, and Recreation and provided a breakdown of the revenues within each category. Mr. Huff
reviewed the proposed FY 24 General Fund operating budgets by category.
General Government
Category
Operating
FY 2023 Budget FY 2024 Budget % Increase/
(Decrease)
$1,353,092 $1,618,545
24.27%
Mr. Huff noted General Government included Village Council, Village Manager, Village
Attorney, Village Clerk, Finance, Human Resources, Information Technology, and Village Hall.
Community Development
Mr. Huff shared highlights from Community Development, as follows:
• Implementation of new online permitting system.
• Addition of two (2) new Part -Time Code Enforcement Officers to work over the weekend
and provide 7 day a week code enforcement services.
• Continuation of updating the Code of Ordinances to create a document for users which is
easier to read and transparent.
• Encourage new economic development and redevelopment by removing barriers, creating
initiatives and working with the business community.
• Implementation of new tablets in the field for building inspectors and code enforcement
officers to streamline processes.
• Complete revisions to and obtain adoption of amendments to the Village's Comprehensive
Plan to fulfill the Village's statutory EAR requirements.
• Educate Village residents and commercial owners regarding the importance of obtaining
necessary peiiiiits and inspections.
• Hold bi-annual Community Development Department Status of the Department
Workshops.
• Addressing the Village Council's top priorities such as annexation and traffic issues
through studies and workshops.
Vice Mayor Bickel highlighted a recommendation she had made to shift some Code Enforcement
duties to Public Works.
Mr. Huff stated he believed that would be a discussion for when the revised landscaping ordinance
comes before the Council.
Councilmember Mullinix asked about a previous discussion regarding allowing architects and
engineers to do inspections and asked how the Village could proceed with the idea.
Discussion ensued.
Wayne Cameron, Building Official, explained the inspection and audit process briefly.
Village Council Budget Workshop held August 16, 2023 Page 6 of 8
Police/Fire Rescue/Public Safety Building
Category FY 2023 Budget FY 2024 Budget % Increase/
(Decrease)
Operating $1,835,093 $2,150,970 17.21 %
Capital Outlay $20,000 0 -100%
Grand Total $1,855,093 $2,150,970 15.95%
Vice Mayor Bickel pointed out there were no building or infrastructure improvements in the
budget for FY 2024.
Mr. Huff stated there were some internal things, which need to be done with air handlers, but due
to economic conditions it had been difficult to get pricing, let alone materials. Mr. Huff added that
there is a CIP planned for a generator.
Mayor Norris asked for clarification on the line item for professional services.
Finance Director Samia Janjua and Police Chief Rick Jenkins provided additional detail.
Public Works
Category FY 2023 Budget FY 2024 Budget % Increase/
(Decrease)
Operating $2,923,150 $3,013,200 3.08%
Council discussion ensued briefly regarding the need for a new building and utility costs.
Finance Director Janjua provided clarification as needed.
Parks and Recreation
• New Seacoast water at Community Center
• Anchorage tennis court resurfacing
• Anchorage outdoor restroom renovations
• Lakeside automatic gate
• Osborne Park building new flooring
• Community Center concession stand
• Professional Development
• Maintenance (tree trimming, sidewalks, plumbing)
• CIP: Veterans refurbishment, Osborne Lights, CC Renovations, Anchorage trail
Library
• Mango Languages 5-yr contract
• Wet seal lobby windows
• Refurbish entryway tiles/terrazzo/planter
• Downstairs public restroom renovations
• New laptops, additional shelves
• Professional development
Village Council Budget Workshop held August 16, 2023 Page 7 of 8
Leisure Services (Library/Recreation/Snecial Events)
Category
FY 2023 Budget FY 2024 Budget % Increase/
(Decrease)
Operating $1,417,535 $1,712,568 20.81%
Mr. Huff stated a larger discussion was needed regarding the facility analysis of the Village
buildings, as there are some repair and maintenance items which should be considered.
Reserves/Transfers/Debt Service
Mr. Huff discussed the General Fund Debt Service category, reviewing the existing vehicle leases
and loan agreements.
Mayor Norris noted this was the area where transfers to the pool and tennis were reflected.
FIVE-YEAR CIP
Mr. Huff reviewed the 5-Year Capital Improvement Plan (CIP) by funding source and department
and discussed the vehicle replacement schedule and cash flow summary.
FY 2024 CIP Project Summary
• 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 - $60,000
• 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)
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
Village Council Budget Workshop held August 16, 2023 Page 8 of 8
Mr. Huff discussed details of each of the proposed CIP for FY 2024. Department Heads provided
additional details as appropriate.
Councilmember Searcy questioned the size of the generator planned for the Country Club
Clubhouse, and whether a generator that could run the entire building was needed.
Police Chief Jenkins outlined the needs of an Emergency Operation Center (EOC) and stated the
generator could be the difference between the Village getting back on its feet quickly or not.
Discussion continued regarding the generator and emergency preparations.
Mr. Huff referenced the Lakeside Park bulkhead replacement and attempting to obtain a grant
when the application period is open. Mr. Huff added there will be a vulnerability assessment
needed to apply for grant money.
Mayor Norris asked about dry storage at Anchorage Park.
Mr. Huff explained the work was pending Florida Power & Light (FPL) undergrounding plans,
but there has been progress and a plan will to the Commission before the beginning of the year.
BUDGET RECAP — FINAL MILLAGE SELECTION
• 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 mills. Mr. Huff reviewed the budget
impact of each fraction of a mill and asked for the direction of Council.
Mayor Norris stated if Council wanted to reduce the Millage Rate, there was an opportunity to do
so in the interest revenues.
Councilmember Aubrey noted there was an anticipated surplus from FY 2023, and while it would
typically be put into CIP, it could be applied to a Millage Rate reduction.
Mr. Huff pointed out spending related to the tornado had been unexpected and should be a
consideration when considering the surplus. Mr. Huff stated an insurance claim was anticipated.
Council discussion continued regarding the Millage Rate.
COUNCIL CONSENSUS
Council consensus was in favor of setting the tentative FY 2023 Millage Rate at 6.90.
NEXT BUDGET WORKSHOP
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 8:58 p.m.
Jess} a Green,