08-08-2018 VC BWS-MPresent:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 8, 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 Samia Janjua,
Library Director Zak Sherman, Parks and Recreation Director Mark Hodgkins, and Police Chief
Rick Jenkins, Special Projects Director Chuck Huff, Communications Manager Ed Cunningham
and HR Director Renee Govig were present.
Mr. Lukasik reviewed the meeting agenda and objectives for the meeting.
VEHICLE LEASING PROGRAM
Mr. Lukasik reviewed the proposed White Fleet Lease program, noting the program would be
evaluated on a yearly basis in subsequent years and provided the Councilmembers with a handout
summarizing the program and a spreadsheet with sample numbers. He provided five (5) years of
vehicle purchase history and discussion ensued regarding spending and the costs associated with
the lease plan. He explained the staff plan to manage cash flow.
COUNTRY CLUB, POOL, TENNIS PROFIT AND LOSS
Mr. Lukasik reviewed the previous discussions regarding comparing year-to-year and explained
the profit and loss statement for the Country Club, pool, and tennis.
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
(decrease)
Revenue
$298809256
$296629405
8.18%
$2179851
Expense
Personnel
$828,298
$581,761
42.38%
$246,537
Operating
$15618,269
$1,659,485
-2.48%
($41,216)
Capital
0
$2300
-100%
($235000)
Contingency
0
0
0
0
Debt Service
$433,689
$3985159
8.92%
$35,530
Total Expense
$298809256
$296629405
8.18%
$2179851
Rounds
40,000
25,044
Mr. Lukasik reviewed the previous discussions regarding comparing year-to-year and explained
the profit and loss statement for the Country Club, pool, and tennis.
Minutes of the Village Council Budget Workshop Session held August 8, 2018 Page 2 of 5
Councilmembers and staff discussed course renovation expenditures, year-to-date $545,118. Mr.
Lukasik explained how capital improvements were recorded by fiscal year and reviewed the
budget carry-overs.
COUNTRY CLUB MEMBERSHIP PRICING
Mr. Lukasik reviewed Country Club membership pricing.
Councilmember Searcy stated the Village may want to consider publicizing the fact that there was
a waitlist, so that current members did not wait until the course was up and running to renew their
memberships.
Mr. Lukasik reviewed the need to bring in an outside consultant to review the membership rates
and how to meet the best interests of the longevity of the Country Club. Discussion ensued
regarding corporate and resident memberships, and the privileges extended to non-resident
members. Council requested the number of rounds played by non-residents be tracked and reported
separately.
Council reviewed the recommendations of the Golf Advisory Board regarding membership rates
and discussed pro -rating the membership versus keeping the membership rate flat. Consensus was
to keep the membership rate flat for FYI and to prioritize residents for memberships. Discussion
continued regarding the membership cap and the potential to set restaurant minimums in the future.
Mr. Lukasik broke down the changes to walk-in rates and highlighted changes. Council discussed
the categories and requirements for each.
TENNIS PROFIT AND LOSS
Mr. Lukasik outlined tennis membership fees, pool membership and daily fees, marina and
recreational sports, and facility rental fees. There were no changes proposed from FYI 8.
Mr. Lukasik discussed keeping tennis and pool as separate divisions in the Enterprise Fund,
subsidized by the General Fund. He reviewed efforts to ensure the General Manager has oversight
and responsibility for the budget, rather than keeping it in the Recreation Budget. Discussion
ensued on the logistics of separating the funds and how to document and protect golf revenues
within the budget.
The Councilmembers and staff discussed room for growth in tennis and opportunities to publicize
youth tennis. There was a consensus to maintain tennis membership fees.
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
decrease)
Revenue
$4689150
$4819150
-2.74%
$139200)
Expense
Personnel
$417,847
$410,132
1.88%
$7,715
Operating
$166,000
$155,723
6.60%
$10,277
Total Expense
$5839847
$5659855
3.18%
$179992
Net Revenue/
Expense
($115,697)
($84,505)
($31,192)
Mr. Lukasik outlined tennis membership fees, pool membership and daily fees, marina and
recreational sports, and facility rental fees. There were no changes proposed from FYI 8.
Mr. Lukasik discussed keeping tennis and pool as separate divisions in the Enterprise Fund,
subsidized by the General Fund. He reviewed efforts to ensure the General Manager has oversight
and responsibility for the budget, rather than keeping it in the Recreation Budget. Discussion
ensued on the logistics of separating the funds and how to document and protect golf revenues
within the budget.
The Councilmembers and staff discussed room for growth in tennis and opportunities to publicize
youth tennis. There was a consensus to maintain tennis membership fees.
Minutes of the Village Council Budget Workshop Session held August 8, 2018 Page 3 of 5
POOL PROFIT AND LOSS
Mr. Lukasik review the profit and loss statement for the pool and discussed promotions to increase
revenues. Discussion ensued regarding how to bill for using the pool when visiting for dinner and
user-friendly fee structures.
Discussion ensued regarding membership fees for swim team members and the contract
requirements. Mr. Hogkins clarified that Cavanah pays $24,000 to rent the pool. He noted water
aerobics and SCUBA participants pay the daily fee.
FY 2019 SUMMARY OF GENERAL FUND BUDGET CHANGES
Mr. Lukasik reviewed a summary of budget changes in the General Fund budget and noted there
were no changes since the last meeting. The Country Club changes totaled $254,379.
VILLAGE COUNCIL BUDGET SUMMARY
FY 2019 Budget
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/
$ increase /
(decrease)
Revenue
$949000
$939000
1.08%
9.96%
$19000
Expense
$1339531
6.20%
$89279
Personnel
$69,354
$805072
-13.39%
($105718)
Operating
$95,575
$114,724
-16.69%
-$19,149
Total Expense
$1649929
$1949796
-15.33%
$299867)
Net Revenue /
Expense
($705929)
($101,796)
$309867
Mr. Lukasik review the profit and loss statement for the pool and discussed promotions to increase
revenues. Discussion ensued regarding how to bill for using the pool when visiting for dinner and
user-friendly fee structures.
Discussion ensued regarding membership fees for swim team members and the contract
requirements. Mr. Hogkins clarified that Cavanah pays $24,000 to rent the pool. He noted water
aerobics and SCUBA participants pay the daily fee.
FY 2019 SUMMARY OF GENERAL FUND BUDGET CHANGES
Mr. Lukasik reviewed a summary of budget changes in the General Fund budget and noted there
were no changes since the last meeting. The Country Club changes totaled $254,379.
VILLAGE COUNCIL BUDGET SUMMARY
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
(decrease)
Personnel $50,470
$50,466
0.01%
$4
Operating $91,340
$83,065
9.96%
$8,275
Total Expense $1419810
$1339531
6.20%
$89279
Mr. Lukasik reviewed the Village Council budget summary and discussed the details on the
hearing loop audio system installation. He noted the project required coordination with the
installation of new carpet in Council Chambers.
Discussion ensued regarding Council compensation. Mayor Morris offered a suggestion to raise
to $12,000 for Councilmembers and $15,000 for Mayor, effective following the next election. He
noted the last raise was in Fall 2006. Council discussed the optics of the increase and the possibility
of offering increased benefits rather than salary. Ms. Teal agreed to send information on
surrounding municipalities and the Village Code requirements to Councilmembers for review and
future discussion.
Minutes of the Village Council Budget Workshop Session held August 8, 2018 Page 4 of 5
VILLAGE CLERK BUDGET SUMMARY
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
(decrease)
Personnel $375,284
$344,291
9.00%
$30,993
Operating $60,435
$37,525
61.05%
$22,910
Total Expense $4359719
$3819816
14.12%
$539903
Mr. Lukasik reviewed projects and initiatives in the Village Clerk budget and discussed the
benefits of the agenda management software being contemplated.. He noted employees had
received a merit increase.
Council discussed election costs and a suggestion to change from two (2) year to terms to three (3)
year terms to facilitate having off -cycle years. Consensus was to discuss a Charter Review
Committee at an upcoming Workshop.
VILLAGE ATTORNEY BUDGET SUMMARY
FY 2019 Budget FY 2018 Budget % increase / $ increase /
(decrease) (decrease)
Operating $160,000 $16000 0% $0
Total Expense $1609000 $1609000 0% $0
Mr. Lukasik briefly outlined the Village Attorney budget, noting it was unchanged.
VILLAGE MANAGER BUDGET SUMMARY
FY 2019 Budget
FY 2018 Budget
% increase
decrease)
/ $ increase /
(decrease)
Personnel $685,349
$614,040
11.61%
$71,309
Operating $68,400
$45,665
49.79%
$22,735
Total Expense $7539749
$6599705
14.26%
$949044
Mr. Lukasik outlined changes to his budget, including funding for a consultant for strategic
planning. He briefly reviewed the strategic planning process and discussed communication.
VILLAGE HALL BUDGET SUMMARY
FY 2019 Budget FY 2018 Budget % increase / $ increase /
(decrease) decrease
Operating $114,220 $106,114 7.64% $8,106
Total Expense $1149220 $1069114 7.64% $89106
Mr. Lulcasik briefly outlined the Village Hall budget. Discussion ensued regarding the newsletter
postage and printing costs, and it was decided to offer an online survey to see if residents would
want to opt out of printed copies.
Minutes of the Village Council Budget Workshop Session held August 8, 2018 Page 5 of 5
HUMAN RESOURCES BUDGET SUMMARY
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
(decrease)
Personnel $295,708
$308,734
-4.22%
($13,026)
Operating $101,320
$11603
-13.32%
($15,563)
Total Expense $3979028
$4259617
-6.72%
($289589)
Mr. Lukasik discussed recent hires and other efforts of the Human Resources department,
including training and supervisory communication.
FINANCE BUDGET SUMMARY
FY 2019 Budget
FY 2018 Budget
% increase
decrease)
/ $ increase /
(decrease)
Personnel $618,043
$588,169
5.08%
$29,874
Operating $52,720
$59,120
-10.83%
($6,400)
Total Expense $6709763
$6479289
3.63%
$239474
Mr. Lukasik discussed the Finance budget, noting document storage was not included in the
FY2018 budget and an employee had switched healthcare plans.
INFORMATION TECHNOLOGY BUDGET SUMMARY
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
(decrease)
Personnel $339,117
$338,809
0.09%
$308
Operating $77,325
$701325
9.95%
$7,000
Total Expense $4169442
$4099134
1.79%
$79308
Mr. Lukasik outlined changes to the Information Technology budget and discussion ensued
regarding virtualization efforts and the Information Technology five (5) year Capital Improvement
Plan (CIP).
ADJOURNMENT
Mr. Lukasik reviewed the upcoming Budget Workshop schedule.
With no further business to come before the Council, the meeting adjourned at 9:05 p.m.
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Comp' eted by Jessica Green, MMC, Village Cleric
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