07-17-2019 VC BWS-MSUMMARY MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 179 2019
Present:
ROLL CALL
Darryl C. Aubrey, Sc.D., Mayor
Mark Mullinix, Vice Mayor
David B. Norris, President Pro Tem
Susan Bickel, Councilmember
Deborah Searcy, Councilmember
Andrew D. Lukasik, Village Manager
Melissa Teal, Village Clerk
Mayor Aubrey called the meeting to order at 7:00 p.m. All members of Council were present except
Vice Mayor Mullinix, who arrived at 7:06 p.m. All members of staff were present, except the Village
Attorney. All Department Directors were present.
Mr. Lukasik distributed these documents to Council: Draft Five Year Capital Improvement Plan (CIP),
Strategic Plan Prioritization, FY 2019 and FY 2020 Preliminary Country Club Budget Summary, FY
2019 and FY 2020 General Fund Budget Summary. He pointed out the budget was in the early stages,
and there was still opportunity to make decisions and tailor the budget to the Village's needs.
STRATEGIC PLAN PRIORITIZATION
Mr. Lukasik reviewed the Strategic Plan Prioritization and current year projects, including:
• Country Club - estimated completion in October, with tentative Grand Opening on
October 26
• Swimming pool improvements in progress
• Commercial Code rewrite — revised draft available by end of month for staff review and
preparation for public hearing process
• Pool and Tennis management energized and reconceptualizing
• Residential zoning codes update in Community Development budget
• Pepperwood Circle seawall repair
• Stormwater master plan
• Finalization of boat and RV ordinance
• US 1 Bridge replacement plan, in early comment phase with FDOT
• Environmental initiatives, establishing a committee
• Aggressively pursuing annexation
• Identifying Code Compliance process improvements
• Develop plan for Country Club capital improvements
• Develop marketing plan for Country Club
Councilmember Bickel asked that the first environmental initiative be moving from individual
plastic bottles of water at Council meetings.
Village Council Budget Workshop Session held July 17, 2019 Page 2 of 5
Mr. Lukasik continued to review the Strategic Plan Prioritization with the projects which were
planned for further out, including:
• Lighthouse Drive Bridge replacement
• Lakeside Park Trail project
• Redeveloping Twin City Mall site
• East Alley wall replacement
• Community Center remodeling
• Rebuild financial reserves
• Process refinement
• Parks and Recreation Needs Assessment
• Prosperity Farms Road Bridge — design contract has not been awarded
• More efficient financial software
• Monet seawall repairs
• Get Business Advisory Board up and running and examine priorities
• Impervious Area Plan and sea level rise initiatives
The Councilmembers and staff discussed investment plans to rebuild financial reserves and
lessons to draw from businesses and other municipalities that might make financial software more
efficient for the Village.
Mr. Lukasik reviewed projects which had received low votes in the prioritization process,
including Anchorage Park Phase II and the Lakeside Trail Park project.
Councilmember Searcy asked questions regarding grants and changing the scope of work for
Lakeside Park. Discussion ensued, and Director of Parks and Recreation Russell Ruskay stated he
would explore options.
President Pro Tem Norris asked about the utility undergrounding initiative. Discussion ensued
regarding an undergrounding plan and credit available to the Village.
FY 2020 PROPOSED BUDGET SUMMARY — GENERAL FUND & COUNTRY CLUB
• Millage rate: 7.50 (no increase over FY 2019)
• Personnel: $17,702,278 (5.48% increase over FY 2019)
• Operating: $6,424,815 (1.04% increase over FY 2019)
• Debt Service: $1,553,357 (8.52% increase over FY 2019)
• General Fund CIP Transfer: $417,150 (3% increase over FY 2019)
• Total Budget: $26,097,600 (4.48% increase over FY 2019)
• Personnel:
o General Fund: Full -Time 146, Part -Time 68
o Country Club: Full -Time 8, Part -Time 27
Mr. Lukasik reviewed high-level budgetary notes from each area, stating there were revenue
opportunities within the Country Club that he thought would improve the financial position
contemplated in the budget.
Village Council Budget Workshop Session held July 17, 2019 Page 3 of 5
PERSONNEL COST ASSUMPTIONS
Mr. Lukasik reviewed the personnel assumptions used to create the budget, including:
• Salary range adjustment
o Non-union: Per salary study on October 1, 2019
o PBA: 6% on October 1, 2019
o IAFF: 3% on October 1, 2019
o FPE: Per salary study on October 1, 2019
o Current FPE Agreement expires September 30, negotiations will pick up in the
next week
• Merit increases: budget assumes 4% on anniversary date
• Wage adjustment
o PBA: 6% on anniversary date
o IAFF: 3% on October 1, 2019
o FPE: Estimating 4% on October 1, 2019
• Health insurance: 5% increase
• Workers' Compensation: 2% increase
• Pension Contribution
o ICMA:15%
o Police and Fire Pension: Total required is $1,072,000
o General Employee Pension: Total required is $355,507
Mr. Lukasik explained budget numbers would be updated as information is gathered and
discussion is held with staff and at budget review meetings.
Discussion ensued regarding individual and family health insurance options available to
employees and potential changes to the cost of coverage as well as alternative options.
PERSONNEL CHANGES
FY 2020 FY 2019 Change
Full -Time 154 151 +3 FT
Part -Time 95 95 -2 PT
Mr. Lukasik reviewed personnel changes for FY 2020, including:
• 1 full-time Country Club Administrative Coordinator added
• 1 full-time Country Club Trades Mechanic added
• 5 part-time Recreation Assistants removed
• 1 full-time Recreation Assistant added
• 1 part-time Community Development Administrative Assistant removed
• 1 part-time Information Technology (IT) Administrative Assistant added
• 1 part-time Tennis Camp Counselor added
• 2 part-time Library Clerks added
Mr. Lukasik explained needs at the Country Club and discussion ensued regarding the need for a
Trades Mechanic to handle maintenance issues and the benefits of having someone on staff versus
hiring outside contractors as problems arise, as well as the need for an Administrative Coordinator.
Consensus was reached to start the year with a part-time Administrative Coordinator at the
Country Club rather than full-time.
Village Council Budget Workshop Session held July 17, 2019 Page 4 of 5
Discussion continued regarding personnel needs for additional part-time person in IT to keep up
with changing needs, including contracts, auditing, and answering office telephones.
Mr. Lukasik explained the need for a part-time camp counselor, which was balanced in the budget
by additional revenue. Discussion ensued regarding the hours needed for programming.
Library Director Zakariya Sherman explained savings in his department due to retirements and
discussed ensued regarding services for the children's department.
Discussion ensued regarding pay bumps for sanitation workers with commercial driver's licenses.
Director of Public Works Steve Hallock explained his approach to reorganizing the department
based on the flexibility of having additional sanitation drivers available when issues arise.
FY 2020 PRELIMINARY BUDGET SUMMARY — COUNTRY CLUB
• Personnel: $1,046,372 (26.33% increase over FY 2019)
• Operating: $2,373,075 (46.64% increase over FY 2019)
• Debt Service: $433,689 (no increase over FY 2019)
• Total Budget: $3,853,136 (33.78% increase over FY 2019)
Mr. Lukasik reviewed revenues at the Country Club, noting an ongoing effort to capture all
revenues and expenses in the appropriate places in the budget. Discussion ensued regarding
operations of the golf shop and driving range.
FY 2020 PRELIMINARY BUDGET SUMMARY — GENERAL FUND
• Personnel: $17,702,278 (5.48% increase over FY 2019)
• Operating: $6,424,815 (1.04% increase over FY 2019)
• Debt Service: $1,553,357 (8.52% increase over FY 2019)
• Transfer Out: $417,150 (3% increase over FY 2019)
• Total Budget: $26,097,600 (4.48% increase over FY 2019)
Mr. Lukasik reviewed revenues in the General Fund, pointing out a more aggressive approach had
been taken to looking at trends in revenue sources and utilities to make sure staff was capturing
what it could. He noted changes to fines and fees in Community Development would be discussed
during later meetings. Discussion ensued regarding licensing and permit fees and how realistic
adjustments made to the budget were.
Mr. Lukasik discussed positive changes which had been made to stabilize the Building
Department, and strategy moving forward. Discussion ensued regarding the cost associated with
utilizing consultants.
Mr. Lukasik pointed to changes in the Pool and Tennis budgets, noting some of the change was a
shift of line items from Recreation to Pool. He explained the structure of the organization needed
adjustment in Tennis, and the changes to paying the pros following the IRS audit. The Council
members asked questions about how other municipalities handled the issue, and Mr. Lukasik
stated he would do additional research.
Village Council Budget Workshop Session held July 17, 2019 Page 5 of 5
CAPITAL IMPROVEMENT PLAN OVERVIEW
Mr. Lukasik explained the format of the Capital Improvement Plan book. He briefly discussed the FY
2020-2023 Capital Improvement Plan, FY 2020 Village funded capital projects, and FY 2020
Infrastructure Surtax projects.
FY 2020 TAXABLE VALUE AND MILLAGE SELECTION
• Millage Rate: $7.50 mils (no increase over FY 2019)
• Gross Taxable Value: $2,348,992,794 (5.18% increase over FY 2019)
• Budgeted Ad Valorem: $16,736,574 ($62,333 increase over FY 2019)
Mr. Lukasik outlined the Village's taxable value growth in comparison to nearby communities.
He explained the Village Manager's proposed Millage Rate was 7.50 mills, setting the maximum
millage rate allowed for the Village. He noted the adoption was tentative and Council could reduce
the rate for the final Adopted Budget and discussion ensued on the process for adoption.
CONSENSUS
Council consensus was in favor of setting the tentative FY 2020 Millage Rate at 7.50.
NEXT BUDGET WORKSHOP
The next Budget Workshop Session will be held August 1, 2019 to consider these departmental
budgets: Village Council, Village Clerk, Village Attorney, Village Manager, Human Resources,
Information Technology, Finance, and Debt & Other.
Mayor Aubrey distributed a memo regarding fees for services and asked Council to review for
further discussion. Discussion ensued regarding the options available and evaluation of the fee
schedule in Public Services.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:25 p.m.
Com 1 ted by Jessica Green, MMC, Village Clerk