09-02-2009 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
• SEPTEMBER 2, 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.
All members of staffwere present, except the Village Attorney. Finance Director Samia Janjua
and Community Development Director Chuck Huff were present.
FY 2010 GENERAL FUND BUDGET OVERVIEW
Mr. Knight distnbuted copies of the FY 2010 General Fund Budget- Recap presentation.
Mr. Knight reviewed the devaluation of property values resulting in declining revenues. A
comparison of the assessed value of property from 1998 to 2010 was provided. A comparison of
the Village's millage rate with that of neighboring communities was shown. Mr. Knight briefly
detailed possible alternate sources of revenue. Discussion took place concerning a garbage
collection fee and methods of collection, such as inclusion in the property tax bill or in water
bills issued by Seacoast Utility Authority. Mr. Knight detailed the cost of garbage collection in
single-family homes ($293,94 per year or $24.49 per month) and multi-family homes ($81.48 per
year or $6.79 per month).
Mr. Knight related budget reduction strategies, which have included reducing personnel costs
$274,254 from the current fiscal year and eliminating 34 positions since FY 2007. Regarding
employee compensation, Mr. Knight noted that a 1 % market adjustment is budgeted for FY
2010, based on a survey of area municipalities. Discussion took place concerning pensions,
including moving to a 401 K, or a defined contribution plan instead of the current defined benefit
plan, and elimination of the lump sum benefit for all employees.
Mr. Knight reviewed operating highlights, particularly the cost of utilities. Mr. Knight noted
proposed capital expenditures are only $572,712 for FY 2010.
Mr. Knight reviewed debt service costs of $1,651,582 including a loan payment of $430,000.
Mr. Knight reported a total of $421, 649 remaining in SBA Fund "B." Mr. Knight advised the
estimated Unreserved Unappropriated Fund Balance is $8,030,738, which represents 45% of the
total budget.
• Mr. Knight discussed millage selection options, discussed challenges, and noted expected
shortfalls and increases. Mr. Knight reviewed Council Contingency and Village Manager
Contingency and suggested contingency amounts equal to 1% and .25% of the budget for the
Council and Manager, respectively.
Minutes of Village Council Budget Workshop Session held September 2, 2009 Page 2 of 2
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Mr. Knight detailed the impact of the millage rate on a taxpayer with homestead exemption and
without homestead exemption, based on $350,000 assessed property value.
Discussion took place concerning paying off the remaining General Fund loan using reserve
funds, or accelerating the payments.
Discussion was held regarding the General Employees Pension plan. Mr. Knight reported it
would require approximately $2.5 million to bring funding up to 85%. Mr. Knight anticipated
eliminating the lump sum benefit provision could gain 5 - 6 points.
Discussion took place concerning a freeze on salaries. Mr. Knight advised that would apply to
FPE employees only. Discussion was held on merit pay. Discussion ensued on eliminating the
market adjustment for FY 2010. Mr. Knight noted savings of $65,547 if no market adjustment is
provided.
Council suggestions concerning the millage rate varied from 6.999 mils to 6.90 mils.
CONSENSUS ITEM
• set millage at 6.90 mils
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:57 p.m.
Melissa Teal, CMC, Village Clerk
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