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07-29-2015 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA JULY 29, 2015 Present: Robert A. Gebbia, Mayor David B. Norris, Vice Mayor Doug Bush, President Pro Tern Darryl C. Aubrey, Sc.D., Councilmember Jim Kelly, Village Manager Melissa Teal, Village Clerk Absent: Mark Mullinix, Councilmember ROLL CALL Mayor Gebbia called the meeting to order at 7:00 p.m. All members of Council were present, except Councilmember Mullinix, who was out of town. All members of staff were present, except the Village Attorney. Also present were Finance Director Samia Janjua, Parks and Recreation Director Mark Hodgkins, Library Director Betty Sammis, Community Development Director Chuck Huff, Village Planner Jodi Nentwick, and Golf Director Casey Mitchell. PURPOSE OF THE MEETING The purpose of the meeting was to review the proposed FY 2016 Budget for these General Fund Departments: Parks and Recreation, Library, Community Development, and these Country Club Departments: Golf, Restaurant, and Administration. PARKS AND RECREATION — COMBINED $1,006,000 Total Revenues $1,643,146 Total Expenses No personnel changes RECREATION AND SPECIAL EVENTS • $492,000 Total Revenues • $632,330 Personnel • $464,723 Operating • $1,097,053 Total expenses; 1.68% decrease from FY 2015 • No personnel changes Discussion took place concerning the decrease in Marina revenues. Mr. Hodgkins explained the dry storage lot is not full as many of the spaces are too small (15 feet) to meet current demand. Mr. Kelly stated spacing and reorganization of the dry storage area is being investigated, along with the possibility of moving dry storage to another location. Discussion ensued on the Master Plan for Anchorage Park. It was noted that boat storage was included as part of the Anchorage Park project; therefore any proposed alternatives should be brought back for Council discussion. Minutes of Village Council Budget Workshop Session held July 29, 2015 Page 2 of 5 POOL Mr. Kelly reported the new Recreation Facilities Manager, Mark Howell, would start work on August 10, 2016 and the Village would take over management of the pool on September 1, 2016. Mr. Kelly noted elimination of the pool manager contract reduces operating expenses by $50,000. • $101,000 Total Revenues • $94,478 Personnel • $92,689 Operating • $191,167 Total expenses; 43.16% decrease from FY 2015 Discussion took place regarding the decrease in pool revenues. Mr. Hodgkins explained that swim team revenues of approximately $100,000 were previously split between the Village and the Pool Manager, with the Village receiving 20% and Coach Cavanah receiving 80 %; going forward, the swim team will pay the Village $24,000 annually for use of the pool. TENNIS Mr. Kelly reported the Village took over the day -to -day operation of the Tennis Facility, which is overseen by the Recreation Facilities Manager and Jackie Wheeler. Mr. Kelly explained the Tennis Pros work as Independent Contractors and are paid hourly. • $412,300 Total Revenues • $140,501 Personnel • $214,425 Operating • $354,926 Total expenses; 36.80% decrease from FY 2015 Discussion ensued regarding charge card fees. Mrs. Janjua explained that patrons' increased use of charge cards to pay for memberships and class registrations has resulted in increased merchant fees to the Village. LIBRARY • $30,323 Total Revenues • $646,595 Personnel • $163,957 Operating • $810,552 Total expenses; 2.48% ($19,591) increase over FY 2015 • No personnel changes Mrs. Sammis reported on the increase in juvenile circulation, programming, and attendance due to the creation of the Youth Services Department in October 2014. COMMUNITY DEVELOPMENT — COMBINED • $1,417,312 Total Revenues 0 $1,126,239 Personnel • $400,907 Operating • $1,527,146 Total Expenses • Personnel Change: 1 full -time Administrative Coordinator position added Minutes of Village Council Budget Workshop Session held July 29, 2015 Page 3 of 5 COMMUNITY PLANNING i • $133,252 Total Revenues; 21.15% ($35,743) decrease from FY 2015 • $265,060 Personnel • $277,315 Operating • $542,375 Total Expenses; 48.58% ($177,341) increase over FY 2015 Mr. Kelly noted FY 2016 revenues were decreased by $35,743 as FY 2015 revenues anticipated a new cell tower lease, which did not occur. Mrs. Janjua reported Community Planning revenues for FY 2015 are projected to be $142,000 at year -end. Mr. Kelly reported that due to budgetary savings in FY 2015 Community Planning Operating Expenses, the Treasure Coast Regional Planning Council Master Plan expense of $193,000 can be paid from this year's budget. Mr. Kelly advised that removing this expense from the FY 2016 Budget would reduce the millage rate 7.3876. By consensus, the Council approved moving this expenditure to the FY 2015 Budget. Discussion took place concerning $80,000 in FY 2015 for Professional Services. Mrs. Nentwicic reported this item was for attorney fees to review the code re- write; however, those funds have not been used. CODE / ZONING COMPLIANCE • $18,200 Total Revenues; 48.73% ($17,300) decrease from FY 2017 • $118,503 Personnel • $20,243 Operating • $138,746 Total Expenses; 8.85% ($13,476) decrease from FY 2015 Mr. Kelly explained the decrease in Code Enforcement revenues because there are fewer fines for violations related to foreclosed properties. B1 J1T,DTNCT • $1,265,860 Total Revenues; 9.16% ($106,240) increase over FY 2015 • $742,676 Personnel • $103,349 Operating • $846,025 Total Expenses; 25.24% ($170,509) increase over FY 2015 • Personnel Change: 1 full -time Administrative Coordinator position added Discussion ensued on impact fees received for the Water Club project. Mrs. Nentwicic reported the Village received 3.4% of the total fees. Mrs. Janjua advised the total impact fee was $1.651 million, of which Palm Beach County received approximately $850,000. Discussion tools place concerning redevelopment and development in the Village. Mr. Huff and Mr. Kelly reviewed potential projects. Discussion ensued regarding salary and benefits for the Administration Coordinator position. It was noted this is an additional expense that is offset by Building Division revenues. Mr. Kelly explained the need for this position and the job duties to be performed. Mrs. Nentwicic explained the increased expense for postage. Minutes of Village Council Budget Workshop Session held July 29, 2015 Page 4 of 5 COUNTRY CLUB — COMBINED • $4,059,764 Total Revenues; 3.67% ($143,723) increase over FY 2015 • $1,216,333 Personnel • $2,119,267 Operating • $645,151 Debt Service • $59,013 Insurance — Property and General Liability • $20,000 Capital • $4,059,764 Total Expenses; 3.67% decrease from FY 2015 • No personnel changes Mr. Kelly discussed entering into a new contract to lease golf carts for three years rather than a lease - purchase contract. FOOD AND BEVERAGE • $789,015 Total Revenues • $528,907 Personnel • $400,288 Operating • $929,195 Total Expenses • ($140,180) Revenues Over (Under) Expenses Discussion tools place concerning FY 2015 Food and Beverage revenues and projected revenues for FY 2016. Mr. Kelly reviewed a quarterly summary of FY 2015 versus FY 2014. Mr. Kelly noted FY 2015 expenses have gone up due to increased staffing costs for keeping the restaurant open seven days a week. Mr. Kelly confirmed that the budget includes a salaried Director of Food and Beverage position. GOLF • $3,260,749 Total Revenues • $1,216,333 Personnel • $2,119,267 Operating • $398,151 Debt Service • $247,000 Golf Cart Lease • $20,000 Capital (two driving range golf ball dispensers) • $2,966,270 Total Expenses • $294,479 Revenues Over (Under) Expenses Ms. Mitchell discussed revenues from cart rentals, walking fees, and greens fees. Ms. Mitchell discussed suggestions for various amenities that could be added for members. Ms. Mitchell reviewed features and advantages of the Visage GPS Technologies device. Discussion ensued regarding the new clubhouse. Mr. Kelly suggested the new clubhouse be treated as a Village community center, with golf operations leasing space in the clubhouse. Mr. Kelly stated any income from the new clubhouse would go to debt service and, after that was paid off, would go to help offset ad valorem taxes. It was noted that the Country Club is a stand -alone business that must, at a minimum, break even. Minutes of Village Council Budget Workshop Session held July 29, 2015 Page 5 of 5 GOLF continued A concern was expressed with combining discussion of the General Fund and Country Club budgets at one meeting, as residents may be confused by the difference between the tax - supported General Fund and the Country Club Enterprise Fund, which is user fee supported. Mr. Kelly advised that staff is evaluating a pure lease for the golf carts, rather than a lease purchase arrangement with a balloon payment at the end. Mr. Kelly reported at the end of the lease, the Village would own the carts and could sell them back to the lessor. Regarding the current GPS systems on the carts, Mr. Kelly stated they would be traded -in. This item will come back to Council. Ms. Mitchell proposed a nominal 1 -2% increase in membership fees, which have not been increased in four years. Discussion ensued on charge card fees and charging patrons a fee to recoup this cost or offering a discount for cash payment. By consensus, the Council directed Mr. Kelly to evaluate ways to recoup credit card fees on memberships. Consensus of Council was in favor of raising membership fees as proposed, if credit card fees are adjusted. CONSENSUS ITEMS • Treasure Coast Regional Planning Council contract expensed in FY 2015 budget • better estimates for Food and Beverage revenues • recoup charge card fees • golf membership increase • will consider golf cart lease instead of lease purchase if it saves money ADJOURNMENT With no further business to come before the Council, the meeting adjourned at 8:48 p.m. Melissa Teal, CMC, Village Cleric