08-31-2011 VC B WS-M MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 31, 2011
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Present: Darryl C. Aubrey, Sc.D., Mayor
David B. Norris, Vice Mayor
William L. Manuel, President Pro Tem
T.R. Hernacki, P.E., Councilman
Robert A. Gebbia, Councilman
James Titcomb, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Aubrey called the meeting to order at 7:00 p.m. All members of Council were present.
All members of staff were present, except the Village Attorney. Finance Director Samia Janjua
and Community Development Director Chuck Huff were present. The purpose of the meeting
was a recap of the budget and discussion of the millage rate.
COUNTRY CLUB BUDGET CHANGES
• $53,333 updated health insurance rates
• $8,060 updated workers' compensation rates
• $209,850 updated contingency
GENERAL FUND BUDGET CHANGES
• $330,123 revised revenue estimate—Municipal Revenue Sharing Program
• $800,965 revised revenue estimate—Telecommunication Tax
• $1,355,522 updated health insurance rates
• $196,770 updated workers' compensation rates
• $10,082 increased allocation for Village Manager conferences, memberships, travel
• $24,083 IT position change from part-time to full-time (salary and benefits)
• $233,439 contingency based on 1.25%of budget
General Fund budget changes resulted in a decrease in revenue of $14,128, a decrease in
expenses of$30,129, and a total of$242,452 in discretionary funds available for an accelerated
payment to the General Employees Pension Plan or other use as determined by Council.
Discussion ensued on the revised revenue estimates received from the State Department of Revenue.
PRELIMINARY FUND BALANCE ANALYSIS
• $10,443,099 Unreserved, Undesignated Fund Balance FY 2009-2010
• $792,033 Budget Appropriations of Fund Balance FY 2011
• $230,709 Estimated Net Income FY 2011
• • $9,881,775 Estimated Unreserved,Undesignated Fund Balance FY 2011 (56.45%ofbudget)
of funds budgeted in FY 2011 but not spent;
Discussion took place regarding the total amount o g
ad valorem revenue collection; FPL revenue distribution; and amount of designated reserves.
Mrs. Janjua explained the difficulty in determining net income at this time, and advised that a
more accurate projection of net income could be provided in September.
Minutes of Village Council Budget Workshop Session held August 31, 2011 Page 2 of 2
FY 2013 BUDGET CHALLENGES
• increased personnel costs for healthcare and contractual benefits
• • increased operating costs
• capital equipment replacements
• continued decline in state revenues
• additional federal, state, and county unfunded mandates
• possible further decline in property values
• future roll back rate determined by ad valorem revenues generated in FY 2012
• providing municipal services that residents expect
MILLAGE OPTIONS
Mr. Titcomb reviewed budget totals, ad valorem proceeds, manager and council contingency,
capital funds, discretionary funds, estimated reserves, and budgetary tax impact for four millage
options. Mr. Titcomb recommended establishing a millage rate of 7.0512.
Discussion ensued regarding FY 2011 Council and Village Manager contingency funds, as well
as funding levels of the General Employees Pension Plan and the Police and Fire Pension Plan.
Discussion took place concerning changes in the millage rate since 2008.
Discussion was held regarding long-term funding considerations, which include collective
bargaining contracts, capital purchases, capital improvements, and facility improvements.
After discussion of the various millage options, consensus of Council was to keep the millage
rate at 6.9723 (same as the current year), eliminate discretionary funds, and reduce total
contingency to $108,347.
Discussion ensued regarding allocation of FY 2012 contingency funds. It was determined to
allocate contingency at 80% Council and 20% Village Manager.
COUNCIL CONSENSUS ITEMS
• consider creating a capital fund using budget savings determined at year-end
• establish FY 2012 millage rate at 6.9723
• allocate contingency 80/20
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:24 p.m.
Melissa Teal, CMC, Village Clerk