07-31-2018 VC BWS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 319 2018
Present: 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
ROLL CALL
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. Rich Pizzolato of the Golf Advisory Board was also
present, along with former Mayor Robert Gebbia.
Mr. Lukasik reviewed the meeting agenda and objectives for the meeting.
VEHICLE LEASING PROGRAM
Mr. Lukasik reviewed the staff proposal for creating a vehicle leasing program. He explained the
process would be similar to the process for purchasing, with staff choosing the vehicles and
outfitting packages, then financing through Ford Motor Credit. He discussed the terms, to include
five (5) year leases at 6.2 percent interest with a $545 underwriting fee. Mr. Lukasik explained
that at the end of the leases, the Village would own the vehicles and could choose to keep them in
service, sell, or return to the dealership as a down payment toward another vehicle.
Mr. Lukasik shared projected expenses for Community Development, Fire Rescue, Police, Public
Works, and Recreation, noting that the Police Department accounted for 65 percent of the vehicle
leasing program costs.
Council asked Chief Jenkins to discuss vehicle needs within the Police Department and the
frequency of replacement. He reviewed the lease proposal and costs including the police vehicle
package. He explained five (5) to seven (7) years was the best return on investment. Discussion
continued regarding expected gas consumption.
Councilmember Bickel asked if the change to SUVs would impact the amount of time a police
vehicle would stay in the fleet. Chief Jenkins stated he thought an SUV might stay in the fleet
longer than the previous cars.
Discussion ensued regarding cost comparisons, flexibility of scheduling replacement vehicles, and
cash flow. Councilmembers asked for additional information to be brought to the next budget
hearing regarding potential benefits of the proposal long term costs and data on purchases over the
past decade.
Village Council Budget Workshop Session held July 31, 2018 Page 2 of 5
Mr. Lukasik broke down the vehicle leasing program options for fire engines, ladder trucks, and
rescue (ambulance) and the terms available for those programs, noting an overall anticipated cost
O savings for lease versus purchase and higher retained residual values of the vehicles. He explained
the budgeted replacement schedule left room for adjustment if the Village's financial position
required. Discussion ensued regarding the cost and sourcing of fire vehicles.
Council discussed the financial implications of vehicle leasing. Mr. Lukasik stated staff would do
additional analysis and bring it back.
FY 2019 PERSONNEL CHANGES
Mr. Lukasik discussed the personnel change for FYI 9, as follows:
Summary
FY 2019
Full -Time
151
Part -Time
97
Volunteers
43
FY 2018 Change
149 +2
95 +2
43 No Change
Mr. Lukasik explained changes included a new full-time Code Officer position, two (2) part-time
Sanitation Collector positions, and a new full-time Country Club General Manager/Assistant
Village Manager. He noted that a previously budgeted Administrative Assistant for the Fire
Department had been removed. He discussed reclassification of two (2) Administrative Assistant
positions to Administrative Coordinator positions and an Outside Service Coordinator position to
Second Assistant Golf Pro.
Councilmember Bickel asked if the Fire Department Administrative Assistant could be a
volunteer. Mr. Lukasik responded that staff was exploring options.
FY 2019 GENERAL FUND CHANGES SUMMARY
Mr. Lukasik reviewed changes to the General Fund budget since Council's last review, including:
• State Revenue Share Estimate received from FDOR — $27,071
• Revenue estimates increased for Recreation, Tennis, and Pool - $27,000
• Updated personnel costs — ($28,544)
• Updated operating costs and removed Fire Administrative Assistant position - $20,100
• Total — $45,627
LIBRARY BUDGET SUMMARY
Mr. Sherman shared highlights from Fiscal Year 2018, including the new children's room and
reading nook. He noted book sale revenues had surpassed the previous year's total in six (6)
months and discussed total attendance in children's programs by fiscal year. Mr. Lukasik reviewed
the library revenues.
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/
$ increase /
(decrease)
Personnel $670,678
$6695017
0.25%
$15661
Operating $179,886
$204,620
-12.09%
($24,734)
Total Expense $8509564
$8739637
-2.64%
($239073)
Village Council Budget Workshop Session held July 31, 2018 Page 3 of 5
Mr. Lukasik explained major changes to the Library budget included starting to migrate away from
O an older management system and removing the gift account from the budget due to fluctuation
year-to-year. Mr. Sherman answered Council questions regarding the gift account.
Mr. Lukasik briefly discussed the Library's project in the five (5) year Capital Improvement Plan
(CIP), which included a planned front lobby renovation of $80,000. He explained the project would
allow for modernizing the lobby and might include renovating the planter to alter its shape and
include built-in seating, purchasing new lobby furniture, repainting the entire lobby interior,
replacing handrails and any damaged flooring tiles, and incorporating interior landscaping.
RECREATION BUDGET SUMMARY
Mr. Hodgkins shared highlights from Fiscal Year 2018, including the Anchorage Park sod
renovation, car and chili show, summer camp, Heritage Day, the 12th annual fishing tournament,
and trips. Mr. Lukasik briefly discussed Recreation revenues and noted a budgeted 9.05 percent
decrease was contemplated associated with additional costs of payroll.
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
(decrease)
Personnel $1,188,973
$1,214,434
-2.10%
($25,461)
Operating $794,953
$750,345
5.940/.
$44,608
Total Expense $199839926
$199649779
0.97%
$199147
Mr. Lukasik explained a change to Professional Services, which was associated with the
Recreation Master Plan. Discussion ensued regarding the purpose of hiring an outside consultant
for the project.
Mr. Lukasik reviewed expected revenues and budget for Tennis. He answered Council questions
regarding promotion and cross -promotion to increase revenue related to merchandising.
Discussion continued regarding maintenance expenses and operations of the Tennis Center.
Councilmember Searcy asked for clarification regarding the relationship between tennis
professionals and the Village, and discussion ensued regarding structure of the program and
revenue opportunities.
Mr. Lukasik explained the pool revenues, noting water aerobics was now renting the pool due to
IRS changes. He reviewed the Recreation projects in the five (5) year CIP and broke down the
capital outlay planned for FY2019 in the Department, including:
• Community Center lighting — $55,000
• Pool resurfacing — $200,000
• Tennis court drainage system — $45,000
• Anchorage Park Phase II — $10,000
• Pool chiller — $32,000
• Pool pump room renovation — $200,000
• Anchorage Park Phase I completion — $593,768
• Community Center pathways — $250,000
Village Council Budget Workshop Session held July 31, 2018 Page 4 of 5
Mayor Norris asked which projects hinged on grants. Mr. Lukasik noted virtually all of the
improvements were dependent upon securing grant funding. Discussion regarding costs continued.
Mr. Lukasik shared feedback from the Recreation Board regarding installing boat lifts in
Anchorage Park. He asked for Council direction regarding moving forward with floating docks
while the boat lift decision remained pending. Discussion ensued regarding the expense of floating
docks and liability of boat lifts. Consensus was to explore both options and bring the information
back to Council.
Councilmember Searcy referenced the funds scheduled for the pool and asked if it needed a full
revamp rather than piecemeal projects. Mr. Lukasik stated there was an evaluation of the pool
done, and the CIP list was based on those recommendations. Discussion continued on the pool's
renovation needs.
COUNTRY CLUB BUDGET SUMMARY
Mr. Lukasik reviewed changes to the Country Club budget since it was last reviewed by Council,
including updated revenue estimates, removal of vacant part-time positions, and updated operating
costs. He noted the changes totaled $244,463.
Councilmember Bickel asked for additional details on budgeted increases to golf revenue.
Rich Pizzolato of the Golf Advisory Board discussed the impact of increasing the number of
rounds on the number of people wanting to golf the course and the associated revenues. Council
and staff discussed the golf fees and membership caps, along with the potential to increase revenue
with the newly renovated course.
Councilmember Aubrey stated that future Country Club budget discussions should include year-
to-date spending and projections so Council could review actual spending in addition to budgets.
Discussion continued regarding the golf fees and comparison with other courses of cost and
available amenities. Mr. Pizzolato discussed the various business models and stated the Golf
Advisory Board had agreed that the fees should be increased next year.
Council discussed options for offering savings to Village residents and changing the methodology
of membership requirements and cost.
Mr. Pizzolato outlined the thinking behind driving down the total number of rounds in order to
protect the golf course from wear and tear. He noted the round had been cut 20 percent over the
past 10 years. He stated the cost per round had remained mostly steady during that time and
explained the Golf Advisory Board had discussed doing an in-depth study prior to an increase.
FY 2019 Budget
FY 2018 Budget
% increase
(decrease)
/ $ increase /
decrease
Total Revenue
$2,890,172
$296629405
8.55%
$2279767
Personnel
$838,214
$581,761
44.08%
$256,453
Capital Outlay
-
$23,000
-100%
($23,000)
Debt Service
$43309
$398,159
8.92%
$35,530
Total Expense
$2,890,172
$29662,405
8.55%
$2279767
Councilmember Bickel asked for additional details on budgeted increases to golf revenue.
Rich Pizzolato of the Golf Advisory Board discussed the impact of increasing the number of
rounds on the number of people wanting to golf the course and the associated revenues. Council
and staff discussed the golf fees and membership caps, along with the potential to increase revenue
with the newly renovated course.
Councilmember Aubrey stated that future Country Club budget discussions should include year-
to-date spending and projections so Council could review actual spending in addition to budgets.
Discussion continued regarding the golf fees and comparison with other courses of cost and
available amenities. Mr. Pizzolato discussed the various business models and stated the Golf
Advisory Board had agreed that the fees should be increased next year.
Council discussed options for offering savings to Village residents and changing the methodology
of membership requirements and cost.
Mr. Pizzolato outlined the thinking behind driving down the total number of rounds in order to
protect the golf course from wear and tear. He noted the round had been cut 20 percent over the
past 10 years. He stated the cost per round had remained mostly steady during that time and
explained the Golf Advisory Board had discussed doing an in-depth study prior to an increase.
Village Council Budget Workshop Session held July 31, 2018 Page 5 of 5
Mr. Lukasik pointed Council to the Country Club General Manager position and discussed his
vision for the scope of work. He asked for feedback on the scope so that he could start to develop
the job description. Discussion ensued regarding what involvement the manager would have in the
Recreation Department.
Vice Mayor Mullinix asked for an organization chart showing where the Country Club General
Manager fit into the Village structure.
Discussion continued on the relationship between Recreation and the Country Club, along with
the skill set of a Country Club General Manager. Mr. Lukasik agreed to look at budget structure
and where the Country Club budget fit into the Village budget.
Mr. Lukasik reviewed the upcoming Budget Workshop schedule:
• Wednesday, August 8 — Council, Clerk, Village Attorney, Village Manager, HR, Finance, IT
• Tuesday, August 14 — Public Works
• Monday, August 20 — Police, Fire Rescue, Community Development
• Thursday, August 30 — Budget Recap and Millage Discussion
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:58 p.m.
Co leted by Jessica Green, MMC, illage Clerk