08-22-2012 VC B WS-M�i
Present:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 22, 2012
David B. Norris, Mayor
William L. Manuel, Vice Mayor
Darryl C. Aubrey, Sc.D., President Pro Tern
Robert A. Gebbia, Councilman
Doug Bush, Councilman
Ed Green, Village Manager
Leonard Rubin, Village Attorney
Melissa Teal, CMC, Village Clerk
Mayor Norris called the meeting to order at 7:00 p.m. All members of Council were present;
Councilman Bush was present by telephone. All members of staff were present. Finance Director
Samia Janjua, Parks and Recreation Director Mark Hodgkins, Human Resources Director
Loren Slaydon, and Information Technology Director Michael Applegate were present.
The purpose of the meeting was to review the FY 2013 Parks and Recreation, Human Resources,
Information Technology, Finance, General Services - Village Hall, and Reserves and Other
departmental budgets.
COUNTRY CLUB LOAN UPDATE
Mr. Rubin reported that during discussions with Bank of America regarding the pre - payment
option for the Country Club loan, it came to the Village's attention that when the loan documents
were executed and the loan was amortized, the amortization schedule prepared by Spectrum (the
Village's financial advisor) used the wrong interest rate basis. Mr. Rubin reported this ,would
result in a balloon payment of $46,924.65 at maturity. Mr. Rubin recommended re- amortizing
the loan after the October payment is made, in order to spread the extra money over the
remaining term. Mr. Rubin explained that increasing each payment by $1,625.04 would result in
additional payments over the remainder of the loan of $37,375.95, which would lessen the
financial impact to the Village by $9,548.67.
Discussion ensued. Mr. Rubin confirmed that the promissory note specifies use of the Actual /360
accrual basis. Consensus of Council was to proceed with Option 2, as recommended, pending
review of documents to be provided by the Village's bond counsel, Mark Raymond. Mrs. Janjua
advised this change would result in FY 2013 Country Club contingency of $126,067. Mr. Rubin
left the meeting at 7:13 p.m.
CURRENT YEAR FINANCIALS
Mr. Green reviewed the General Fund 3rd Quarter Financials.
• Recreation budget expenditures were $707,721 at 3rd Quarter ending 6/30/12
• Human Resources budget expenditures were $170,613 at 3rd Quarter ending 6/30/12
• Information Technology budget expenditures were $225,326 at 3rd Quarter ending 6/30/12
• Finance budget expenditures were $377,213 at 3rd Quarter ending 6/30/12
• General Services- Village Hall expenditures were $112,178 at 3rd Quarter ending 6/30/12
• Reserves and Other expenditures were $227,354 at 3rd Quarter ending 6/30/12
Minutes of Village Council Budget Workshop Session held August 22, 2012 Page 2 of 3
PARKS AND RECREATION
_ • $466,750 total Recreation revenues
• $794,880 combined personnel expenses
/) • $996,510 combined operating expenses
• $157,000 combined capital outlay
• $1,948,390 combined total expenses; 10.15% or $179,548 increase over FY 2012
• no personnel changes
• 6 full -time employees, 43 part-time employees
Mr. Hodgkins reviewed the proposed purchase of a small bus to replace the current van. Council
consensus was in favor of the bus purchase; however, more information is needed before
determining whether to purchase a new or used bus. Mrs. Janjua advised that the bus purchase,
utilizing Capital Improvement Plan (CIP) funds, would come back to Council for approval.
Discussion took place concerning other capital expenses, including the replacement of 2 package
air conditioning units, replacement of playground equipment at Osborne Park, and enhancements
and filtration system upgrades to the Country Club kiddie pool. Mr. Hodgkins reviewed the
5 Year Capital Improvement Plan. The total amount of developer contributions received and
used to date was reviewed.
Discussion was held regarding projected revenues and the fee structure for marina dry storage spaces.
RECREATION AND SPECIAL EVENTS
• $585,685 personnel costs
• $417,155 operating costs
• 107,000 capital outlay
• $1,109,840 total expenses; 2.04% or $22,220 increase over FY 2012
TENNIS
• $399,222 revenues
• $118,835 personnel costs
• $356,301 operating costs
• no capital expense
• $475,136 total expenses; 22.32% or $86,700 increase over FY 2012
Discussion ensued regarding tennis operating costs versus revenues. It was suggested that the
Village consider charging the tennis professionals a small fee for use of the tennis facility to give
lessons. It was requested that staff obtain additional information from other area facilities in
order to determine whether changes to the business model should be made.
POOL
• $182,500 revenues
• $90,360 personnel costs
• $223,054 operating costs
• $50,000 capital outlay (to be funded with developer fees)
• $363,414 total expenses; 24.12% or $70,628 increase over FY 2012
A suggestion was made to consider adjusting rental fees on an annual basis — perhaps 3% per year.
It was suggested that all user fees be evaluated and adjusted yearly, based on a competitive analysis.
Minutes of Village Council Budget Workshop Session held August 22, 2012 Page 3 of 3
HUMAN RESOURCES
• $215,828 personnel costs
�� • $62,961 operating costs
• no capital expense
• $278,789 total expenses; 15.51 % or $37,431 increase over FY 2012
• no personnel changes
• 2 full -time employees
Mrs. Slaydon reported $30,000 was budgeted for a compensation study. Discussion ensued on
including the private sector as well as governmental agencies for salary comparisons. Discussion
ensued on the increased cost for employee physicals.
INFORMATION TECHNOLOGY
• $298,113 personnel costs
• $36,900 operating costs
• no capital expense
• $335,013 total expenses; 0.53% or $1,776 decrease from FY 2012
• no personnel changes
• 3 full -time employees
Mr. Applegate noted that bandwidth is almost at capacity and will need to be upgraded in the
next 2 years. Discussion took place regarding Wi -Fi.
FINANCE
• $496,739 personnel costs
• $51,850 operating costs
• no capital expense
• $548,589 total expenses; 2.79% or $14,881 increase over FY 2012
• no personnel changes
• 5 full -time employees, 1 part-time employee
GENERAL SERVICES - VILLAGE HALL
• $111,209 operating costs; 37.72% or $67,343 decrease from FY 2012
RESERVES & OTHER
• no debt
• $103,614 total reserves & contingencies ($84,000 Council and $19,614 Village Manager)
• $392,639 property /general liability insurance
• $496,253 total expenses; 0.94% or $4,733 decrease from FY 2012
COUNCIL CONSENSUS ITEMS
• Parks and Recreation capital items
1 ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:55 p.m.
Melissa Teal, CMC, Village Clerk