Loading...
07-30-2014 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA JULY 30, 2014 Present: Darryl C. Aubrey, Sc.D., Mayor Robert A. Gebbia, Vice Mayor David B. Norris, President Pro Tern William L. Manuel, Councilman Doug Bush, Councilman Jim Kelly, Village Manager Melissa Teal, 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 Sarnia Janjua, Interim Golf Director Casey Mitchell, Member Relations Coordinator Lenore Dingle, and Food and Beverage Director David Naumann were present. The purpose of the meeting was to review the proposed FY 2015 Country Club Budget. FY 2015 SUMMARY OF POSITION CHANGES Mr. Kelly reviewed the Country Club Organization Chart and the position changes for FY 2015 (changes were implemented temporarily in FY 2014). • 1 part-time Golf Shop Attendant position added; unfunded in FY 2015, to be filled when needed • 1 part -time Service Personnel position changed to full -time Assistant Restaurant Mgr. position • 1 full -time Banquet Event Coordinator position changed to part-time • 2 part-time Snack Bar Attendant positions deleted • $8,989.40 total increase in personnel costs for these position changes Discussion took place regarding the cost of medical benefits. Mrs. Janjua reviewed the cost to the employee and the Village for single and family coverage. FY 2015 PROPOSED COUNTRY CLUB BUDGET • Total Budget: $3,916,041; an increase of 3.33% over FY 2014 • Contingency: $24,298 • Memberships: 256 • Rounds: 44,850 • Personnel: $1,203,514, or 30.77% of total budget • Operating: $2,150,078, or 54.97% of total budget • Debt Service: $538,151, or 13.76% of total budget • Insurance — Property &General: $55,809 or 1.43% of total budget • Capital: zero It was clarified that the golf cart lease is included in debt service because it is a capital lease. FY 2015 EXPENSES • Personnel, Operating, and Debt Services combined total: $3,891,743, an increase of $120,919 or 3.21 % over FY 2014 • Administration: $165,407, a decrease of 2.64% or $4,479 from FY 2014 • Golf expenses: $2,792,523, an increase of 3.32% or $89,779 over FY 2014 • Food and Beverage expenses: $958,111, an increase of 5.02% or $45,786 over FY 2014 • Operating Income /Contingency: $24,298 Minutes of Village Council Budget Workshop Session held July 30, 2014 Page 2 of 3 FY 2015 REVENUES - • Total revenues: $3,916,041 • Total Golf Revenues: $2,716,027 • Greens Fees: $926,601 or 23.66% of the budget • Cart Rental and Walking Fees: $906,833 or 23.16% of the budget • Food and Beverage: $800,000 or 20.43% of the budget • Membership: $578,045 or 14.76% of the budget • Driving Range: $304,548 or 7.78% of the budget • Other revenue (merchandise, lessons, rentals): $400,014 or 10.21 % of the budget Mr. Kelly noted increased revenues from the driving range, cart rentals, and sales of golf merchandise in FY 2014. Discussion took place regarding memberships. Ms. Mitchell stated that our member fees, which will not be increased, are comparable to other area courses. Discussion ensued on walk -ins. Ms. Mitchell reported 108 resident cards were sold this year and 479 rounds were played by resident cardholders. FY 2015 FOOD AND BEVERAGE • Total revenues: $800,000 ' • Personnel: $525,766 or 55% of the departmental budget • Operating: $432,345 or 45% of the departmental budget • Total Expenses: $958,111, an increase of 5.02% or $45,786 over FY 2014 • Estimated loss: $15 8,111 Discussion took place regarding the restaurant as an amenity. Discussion ensued on the banquet operation. It was requested that staff provide details on banquet costs versus profits. A suggestion was made to focus on golf, tennis, and pool patrons, and it was requested that staff research how many are restaurant patrons. FY 2014 YEAR -END PROJECTION • Total Revenues: $3,727,153 • Food and Beverage Revenues: $641,471 • Total Expenses: $3,890,417 • Net Loss: $73,265; includes a total of $107,579.51 in unbudgeted projects; without the additional expenses, the Country Club would have had an estimated profit of $34,314 Unbudgeted expenses included: • Sewer lateral installation: $13,500 • Summer Golf Projects: $44,175 • HVAC System Evaluation Study: $6,500 • HVAC System Installation: $33,600 • Earman River Pump Repairs: $9,804.51 Mrs. Janjua discussed revenue shortfalls in the last quarter due to adverse weather. Mrs. Janjua stated projections would be updated in August. Mrs. Janjua reported the impact of the compensation study on personnel costs in the FY 2014 budget was $47,000. Minutes of Village Council Budget Workshop Session held July 30, 2014 Page 3 of 3 CONSENSUS ITEMS Contingency increased from $19,371 to $24,298, due to $4,927 in additional revenue from an adjustment in walking fees. The Council requested that The Gehring Group attend the August 6, 2014 Budget Workshop meeting to review the Village's health insurance plan. ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 8:12 p.m. Melissa Teal, CMC, Village Clerk