08-30-2018 VC BWS-MPresent:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 30, 2018
David B. Norris, Mayor
Mark Mullinix, Vice Mayor
Susan Bickel, President Pro Tem
Darryl C. Aubrey, Sc.D., Councilmember
Deborah Searcy, Councilmember
Andrew D. Lukasik, Village Manager
Melissa Teal, Village Clerk
Mayor Norris 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,
Special Projects Director Chuck Huff, Library Director Zak Sherman, and Communications
Manager Ed Cunningham were present.
PURPOSE OF THE MEETING
Mr. Lukasik summarized the proposed FY 2018-2019 General Fund and Country Club budgets.
The following items were reviewed:
FY 2019 SUMMARY OF BUDGET CHANGES
No changes have been made to the General Fund or Country Club budgets since the last meeting.
FY 2019 COMBINED BUDGET SUMMARY
CATEGORY
GENERAL FUND
COUNTRY CLUB
TOTAL
Millage Rate
$7.33
n/a
$7.33
Personnel
$16,782,752
$828,298
$17,611,050
Operating
5,997,383
1,618,269
7,615,652
Debt Service
1,431,336
433,689
1,865,025
CIP Transfer
405,000
0
405,000
Contingency
0
0
0
Total
$24,616,471
$2,880,256
$27,496,727
POSITION TYPE
GENERAL FUND
COUNTRY CLUB
TOTAL
Full -Time
145
6
151
Part -Time
70
27
97
FY 2019 SUMMARY OF PERSONNEL CHANGES
POSITION TYPE
FY 2019
FY 2018
CHANGE
Full -Time
151
149
+2
Part -Time
97
95
+2
Volunteers
43
43
No Change
Summary of Village Council Budget Workshop Session held August 30, 2018
POSITION CHANGE SUMMARY
• 1 full-time Code Officer position added
• 2 part-time Sanitation Collector positions added
• 1 full-time General Manager position added
• 2 Administrative Assistant positions reclassified as Administrative Coordinators
• 1 Outside Service Coordinator position reclassified as Second Assistant Golf Pro
FY 2019 BUDGET HIGHLIGHTS
• Recreation Master Plan
• U.S. Highway 1 Corridor Study — Master Plan implementation
• Unified Land Development Code (ULDC) / Residential Code Update
• New Positions: General Manager, Code Officer, 2 part-time Sanitation Collectors
• Stormwater Fee Analysis
• Balanced Five Year CIP: Pool; Anchorage Park; U.S. Highway 1 Bridge and
Prosperity Farms Road Bridge designs — Master Plan implementation
• Vehicle Lease Program
Page 2 of 6
Mr. Lukasilc advised the Recreation Master Plan will provide an inventory and review of Village
parks and recreation programs to determine what may be needed in the future. Mr. Lukasik
reported the U.S. Highway 1 Corridor Study will analyze the lane reduction proposed in the
Master Plan. Mr. Lukasilc stated ULDC update will be combined with the Residential Code
update and completed as one project.
FY 2019 GENERAL FUND BUDGET SUMMARY
CATEGORY
FY 2019
FY 2018
% INCREASE
$ INCREASE
Millage Rate
$7.33
$7.33
0%
0
Personnel
$16,782,752
$15,984,961
4.99%
$797,791
Operating
5,997,383
6,013,263
-0.26%
(15,880)
Total
$22,780,135
$21,998,224
3.55%
$781,911
Debt Service
1,431,336
1,293,101
10.69%
138,235
Transfer Out
405,000
190,799
112.27%
214,201
Total Budget
$24,616,471
$23,482,124
4.83%
$1,134,347
FY 2019 GENERAL FUND REVENUES
SOURCE
REVENUES
TOTAL BUDGET %
Taxes (including Ad Valorem)
$19,597,299
79.61%
Ad Valorem
15,579,720
63.29%
Charges for services
2,345,560
9.53%
Intergovernmental
1,500,382
6.10%
Licenses & Permits
980,100
3.98%
Other
193,130
0.78%
Total Revenues
$24,616,471
Data regarding the amount of ad valorem taxes derived from commercial properties was requested.
Summary of Village Council Budget Workshop Session held August 30, 2018
FY 2019 GENERAL FUND EXPENSES BY DEPARTMENT
DEPARTMENT
EXPENSES
TOTAL BUDGET %
Police and Fire
$9,671,875
39.29%
Public Works
5,283,828
21.45%
General Government
3,347,808
13.60%
Leisure Services
2,817,701
11.45%
Community Development
1,658,923
6.74%
Debt Service
1,431,336
5.81%
Transfer Out
405,000
1.65%
Total Expenses
$24,616,471
$2,880,256
FY 2019 GENERAL FUND EXPENSES BY FUNCTION
FUNCTION
EXPENSES
TOTAL BUDGET %
Personnel
$16,782,752
68.18%
Operating
5,997,383
24.36%
Debt Service
1,431,336
5.81%
Transfer Out
405,000
1.65%
Total Expenses
$24,616,471
9.16%
FY 2019 COUNTRY CLUB BUDGET SUMMARY
REVENUES
CATEGORY
FY 2019
FY 2018
% INCREASE
Personnel
$828,298
$581,761
42.38%
Operating
1,618,269
1,659,485
-2.48%
Total
$2,446,567
$2,241,246
9.16%
Capital
0
23,000
-100%
Debt Service
433,689
398,159
8.92%
Total Budget
$2,880,256
$2,662,405
8.18%
Page 3 of 6
$ INCREASE
$246,537
(41,216)
$205,321
(23,000)
35,530
$217,851
Mr. Lukasik stated the reduction in FY 2019 operating reflects a decrease in costs such as utilities
and maintenance associated with the old clubhouse.
FY 2019 COUNTRY CLUB REVENUES
SOURCE
REVENUES
TOTAL BUDGET %
Greens Fees
$862,000
29.93%
Cart Rental/Walking
731,000
25.38%
Membership
531,709
18.46%
Driving Range
300,000
10.42%
Appropriated Retained Earnings
275,647
9.57%
Golf Lessons
85,000
2.95%
Other
49,900
1.73%
Golf Merchandise Sales
45,000
1.56%
Total Revenues
$2,880,256
Summary of Village Council Budget Workshop Session held August 30, 2018
FY 2019 COUNTRY CLUB EXPENSES BY FUNCTION
FUNCTION EXPENSES TOTAL BUDGET %
Operating
$1,618,269 56.18%
Personnel
828,298 28.76%
Debt Service
433,689 15.06%
Total Expenses
$2,880,256
FIVE YEAR CAPITAL IMPROVEMENT PLAN BY FUNDING SOURCE
SOURCE
REVENUES
TOTAL BUDGET %
Grant Funding
$5,792,000
31%
Other
5,170,000
28%
Infrastructure Surtax
3,845,000
21%
General Revenues
2,630,992
14%
Debt Service
700,000
4%
Fund Balance
443,768
2%
Total CIP
$18,581,760
10%
Page 4 of 6
Mr. Lukasik noted the revenues attributed to grant funding had been determined in conjunction
with the Village's grant consultant, RMPK Funding, Inc. Mr. Lukasik explained funding sources
in the "Other" category include sale of an existing front -loader sanitation truck; potential sale of
the Public Works complex; stormwater fees; and donations for specific projects. Discussion
ensued concerning donations for license plate reader (LPR) cameras. Discussion ensued
regarding the City of Palm Beach Gardens Public Works Facility. Mr. Lukasik stated that no
response had been received from Palm Beach Gardens following the Village's response to the
City's initial approach.
FIVE YEAR CAPITAL IMPROVEMENT PLAN BY CATEGORY
CATEGORY
EXPENSES
TOTAL BUDGET %
Streets & Roads
$9,875,000
53%
o Lighthouse Bridge
5,500,000
o U.S. Highway 1 Bridge
550,000
o Prosperity Farms Bridge
225,000
o Monet Bridge
50,000
Village Facilities
2,345,000
13%
Park Development
1,859,768
10%
Vehicles
1,691,592
9%
Recreational Facilities
960,000
5%
Stormwater
900,000
5%
Equipment
825,500
4%
Technology
124,900
1%
Total CIP
$18,581,760
Discussion tools place concerning $550,000 included in Streets & Roads for improvements to the
U.S. Highway 1 Bridge. Mr. Lukasik clarified the bridge is not included in the corridor study.
Summary of Village Council Budget Workshop Session held August 30, 2018 Page 5 of 6
Mr. Lukasik reviewed the Five Year CIP Cash Flow Summary. Mr. Lulcasilc explained the CIP
Transfer assumes an annual increase in revenues of 3%. Mr. Lukasilc noted the FY 2019 transfer
of $405,000 from General Fund ad valorem revenue to CIP was equal to .1905 mils. Discussion
ensued regarding revenues derived from Developer Fees.
Mr. Lulcasilc reviewed the FY 2019 Capital Projects and associated revenue sources. Discussion
ensued regarding the percentage of the Village covered by the FY 2019 allocation for asphalt
resurfacing and sidewalk repair.
PROPERTY TAX BILL
Mr. Lulcasilc noted the Village receives only thirty-five cents out of each dollar in property taxes:
DEPARTMENT
TOTAL
BUDGET %
¢
Public Safety
$9,671,875
39%
$0.14
Public Works
$5,283,828
21%
0.07
General Government
$3,347,808
14%
0.05
Leisure Services
$2,817,701
11%
0.04
Community Development
$1,658,923
7%
0.02
Debt Service
$1,431,336
6%
0.02
CIP Transfer
$405,000
2%
0.01
Total Operating Budget
$24,616,471
100%
$0.35
TAXPAYERIMPACT
Mr. Lulcasilc gave an example of the impact of 7.33 mils or 7.50 mils in ad valorem taxes:
Assessed Value $400,000
Homestead Exemption (50,000)
Taxable Value $350,000
AD VALOREM TAXES 2018-2019 MILLAGE TAX BILL % OF TOTAL TAX BILL
Village of North Palm Beach 7.33 $2,565.50 34%
Village of North Palm Beach 7.50 $2,625.00 35%
Impact to Taxpayer of 7.50 mils over 7.33 mils equals $59.50
Mr. Lulcasilc gave an example of the impact if the additional Homestead Exemption is approved:
DESCRIPTION
$7.33
$7.33 with additional homestead
Village impact @ $7.33 mils
$7.50
$7.50 with additional homestead
Village impact @ $7.50 mils
$200,000 $400,000
ASSESSED VALUE ASSESSED VALUE
$1,099.50 $2,565.50
$916.25 $2,382.25
($183.25)
$1,125.00 $2,625.00
$937.50 $2,437.50
($187.50)
Mr. Lukasilc reviewed budgeting challenges, including:
Summary of Village Council Budget Workshop Session lield August 30, 2018 Page 6 of 6
• PBA and IAFF contracts (wages and pension liability)
• Additional Homestead Exemption Impact (estimated at $600,000)
• Clubhouse operation and debt service
($1,200,000 in annual debt service; no allocation included in Enterprise Fund to date)
• Unassigned Fund Balance Level (current balance estimated at $5,800,000)
• Economic impacts (tariffs; housing slow -down)
FY 2019 MILLAGE RATE SELECTION OPTIONS
The rolled -back rate is $6.9710 mils. Mr. Lukasik reviewed the millage table and presented the
impact of three millage rate options:
MILLAGE RATE BUDGETARY % INCREASE OVER CIP
COUNCIL
AD VALOREM ROLLED -BACK RATE TRANSFER
CONTINGENCY
$7.33 $15,579,720 5.15% $405,000
0
(budget as presented)
$7.40 $15,728,503 6.15% $405,000
$148,783
$7.50 $15,941,051 7.59% $405,000
$361,331
COUNCIL CONSENSUS
Discussion ensued regarding the millage rate and budgetary challenges including
police and fire
salaries and pension benefits, as well as the likelihood that an additional homestead
exemption is
I approved by the voters. By consensus, the millage rate was set at 7.50 mils.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:21 p.m.
ezt 11�/
Melissa Teal, MMC, Village Cleric