08-09-2017 VC BWS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 9, 2017
Present: Darryl C. Aubrey, Sc.D., Mayor
Mark Mullinix, President Pro Tem
David B. Norris, Councilmember
Andrew D. Lukasik, Village Manager
Melissa Teal, Village Clerk
Absent: Robert A. Gebbia, Vice Mayor
Susan Bickel, Councilmember
ROLL CALL
Mayor Aubrey called the meeting to order at 7:00 p.m. All members of Council were present,
except Vice Mayor Gebbia and Councilmember Bickel. All members of staff were present, except
the Village Attorney. Finance Director Sarnia Janjua, Library Director Zak Sherman, Parks and
Recreation Director Mark Hodgkins, Golf Director Casey Mitchell, Special Projects Director Chuck
Huff, Police Chief Rick Jenkins, and Public Works Director Steven Hallock were present.
PURPOSE OF THE MEETING
Mr. Lukasik explained the purpose of the workshop was to begin focusing in on departments
within the budget as well as to review the General Fund budget changes and the Capital
Improvement Plan (CIP) cash flow.
FY 2018 SUMMARY OF BUDGET CHANGES — GENERAL FUND
Mr. Lukasik explained that staff had made several adjustments since the last workshop, including:
• Communications Sales Tax (CST) estimate received from FDOR - $26,841
• Updated personnel costs - $87,695
o Sanitation overtime budget reduced
o Recreation staff changes
o General Employees Pension — employer contribution requirement increased
o Health insurance estimate increased
• Delete cost for Public Works accreditation - $65,000
• Delete cost for energy conservation project (facility and street LED lighting) - $30,000
• Total - $209,536
FY 2018 — FY 2027 TEN YEAR CIP CASH FLOW — GENERAL FUND
Mr. Lukasik reviewed the 10 -year cash flow in the CIP. He noted that from an operating
perspective the Village was in good shape, but the CIP was an area for improvement. He reviewed
the CIP Fund, projects by category, potential grant funding, and estimated revenue from the
infrastructure surtax (sunset December 31, 2026). Mr. Lukasik discussed the "wish list" in the CIP
and efforts to make the process more robust. He stated that staff would be focusing attention more
on the initial five (5) years rather than the full 10 years in order to increase accuracy.
Minutes of Village Council Budget Workshop Session held August 9, 2017 Page 2 of 5
Councilmembers asked questions on several line items and Mr. Lukasik provided clarification.
Discussion ensued regarding prioritization of the CIP.
LIBRARY BUDGET
Mr. Lukasik reviewed the Library organizational chart, noting small changes for FY 2018 to create
flexibility within the organization. He noted there would be the same number of hours utilized at
a cost of approximately an additional $1,000.
FY 2018 Budget
FY 2017 Budget
% increase/
decrease
$ increase/
decrease
Personnel $669,277
$658,869
1.58%
$10,408
Operating $209,620
$161,194
30.04%
$48,426
Total Expenses $878,897
820,063
7.17%
$58,834
Mr. Lukasik reviewed plans for a new children's department in the library and discussed program
attendance and metrics measured. He noted an increased demand was reflected as an increased
investment in children's books. He stated there was a $40,000 gift from the Friends of the Library
included for improvements.
Councilmembers discussed donations. Library Director Zak Sherman discussed the need to keep up
with rapidly growing attendance and outlined the plans for the children's department improvements.
Mr. Lukasik discussed the library's line items within the 10 -year CIP, including a library stair
replacement planning and design scheduled for FY 2025 at an estimated cost of $50,000 and HVAC
controls in FY 2019 at an estimated cost of $20,000.
PARKS & RECREATION BUDGET
Mr. Lukasik reviewed the Parks & Recreation organizational chart, noting the Recreation
Superintendent would be reclassified as Parks/Facilities Manager due to the retirement of a
longtime employee. He discussed other changes, including removing one (1) camp counselor and
six (6) pool lifeguards, and adding five (5) recreation assistants — four (4) under pool operations
and one (1) under recreation and special events. Additionally, the proposal included the addition
of a part-time administrative assistant for the department and a full-time recreation supervisor
under recreation and special events. Mr. Lukasik pointed out that part-time instructors were
previously classified as Independent Contractors.
Councilmembers discussed the changes to the system for paying tennis instructors and the impact
on revenue generation of the programs as well as employment taxes.
Mr. Lukasik shared a list of Parks & Recreation projects and initiatives, including:
• Capital Projects including Anchorage Park Master Plan development and implementation
• Tree/sidewalk conflicts (neighborhood outreach with Public Works)
• Youth sports programs
• Recreation programming
• Clubhouse operations coordination
• Tennis strategies to increase participation, enhance atmosphere and maintenance, and
increase merchandising revenue
Minutes of Village Council Budget Workshop Session held August 9, 2017 Page 3 of 5
• Pool long term planning and implementation of interim strategies
• Lakeside Park promotion as a neighborhood park and evaluation of opportunities
Councilmembers discussed working with Jupiter and Palm Beach Gardens regarding reciprocal
programs in youth sports. Parks and Recreation Director Mark Hodgkins agreed to follow up.
Discussion ensued regarding kayaking and sailing at Lakeside Park.
Combined Parks & Recreation Budget
Mr. Lukasik pointed out an increase in salary and benefits, which was attributed predominantly to
the relocation of the cost for lessons. Mayor Aubrey asked for additional breakdown on the
impacts. Mr. Lukasik noted the additional expenses for moving the Independent Contractors to
part-time employees would include payroll taxes, Workers' Compensation Insurance, General
Liability Insurance, and equipment/materials. He stated that staff would provide additional detail
prior to the next workshop.
Discussion ensued regarding having uniformity of items in parks such as trash cans, and the IRS
issue surrounding tennis professionals.
Mr. Lukasik reviewed the operating highlights under the Parks & Recreation budget. He stated
Parks and Recreation Director Mark Hodgkins was able to secure a $200,000 grant to pave the trail
around the Community Center. He added that the grant required a $15,000 match, and there was
equipment programmed into the CIP to meet that requirement.
Recreation & Special Events
FY 2018 Budget
FY 2017 Budget
% increase/
decrease
$ increase/
decrease
Total Revenues
$150585150
$1,012,615
4.50%
$45,535
Personnel
$1,221,832
$896,046
36.36%
$3255786
Operating
$745,545
$900,434
-17.20%
($154,889)
Total Expenses
$15967,377
$1,796,480
9.51%
$1705897
Net Profit/(Loss)
($909,227)
($783,865)
($125,362)
Mr. Lukasik pointed out an increase in salary and benefits, which was attributed predominantly to
the relocation of the cost for lessons. Mayor Aubrey asked for additional breakdown on the
impacts. Mr. Lukasik noted the additional expenses for moving the Independent Contractors to
part-time employees would include payroll taxes, Workers' Compensation Insurance, General
Liability Insurance, and equipment/materials. He stated that staff would provide additional detail
prior to the next workshop.
Discussion ensued regarding having uniformity of items in parks such as trash cans, and the IRS
issue surrounding tennis professionals.
Mr. Lukasik reviewed the operating highlights under the Parks & Recreation budget. He stated
Parks and Recreation Director Mark Hodgkins was able to secure a $200,000 grant to pave the trail
around the Community Center. He added that the grant required a $15,000 match, and there was
equipment programmed into the CIP to meet that requirement.
Recreation & Special Events
Tennis
'
FY 2018 Budget
FY 2017 Budget
% increase/
decrease
$ increase/
decrease
Total Revenues
$483,800
$494,015
-2.07%
($10,215)
Personnel
$724,740
$645,394
12.29%
$79,346
Operating
$479,898
$502,825
-4.56%
($22,927)
Total Expenses
$1,204,638
$1,148,219
4.91%
$56,419
Net Profit/(Loss)
($720,838)
($654,204)
($66,634)
Tennis
'
FY 2018 Budget
FY 2017 Budget
% increase/
decrease
$ increase/
decrease
Total Revenues
$481,350
$438,100
9.87%
$43,250
Personnel
$412,271
$155;643
164.88%
$256,628
Operating
$155,723
$294,354
-47.10%
($138,631)
Total Expenses
$567,994
$449,997
26.22%
$117,997
Net Profit/(Loss)
($86,644)
($11,897)
($74,747)
Minutes of Village Council Budget Workshop Session held August 9, 2017 Page 4 of 5
P""I
1 VV1
FY 2018 Budget
FY 2017 Budget
% increase/
decrease
$ increase/
decrease
Total Revenues
$93,000
$80,500
15.53%
$12,500
Personnel
$80,021
$95,009
-15.78%
($14,988)
Operating
$114,724
$103)255
11.11%
$11,469
Total Expenses
$194,745
$198,264
-1.77%
($3,519)
Net Profit/(Loss)
($101,745)
($117,764)
$16,019
Council discussed revenues for special events, including the impact of boat storage closures and
changes to lessons.
Mr. Lukasik reviewed the Parks & Recreation 10 -year CIP. He explained the FY 2018 Capital
Outlay planned, totaling $1,580,000:
• Automotive — replace converted passenger van used to transport recreational equipment
• Community Center marquee sign — existing sign installed in 1983
• Playground equipment — replacement and enhancement of the exercise equipment at the
Community Center
• Tennis Court drainage system — eastside drainage area
• Pool resurfacing — to include new tile and coping, address pool floor system
• Pool pump room renovation — replacement of existing piping with new system
• Anchorage Park floating docks — install new docks and piers at Anchorage Park Marina
• Anchorage Park Phase 2 — grant project includes boating facilities, picnic facility, fishing
dock, observation deck, kayak launch, multipurpose trail
Discussion ensued regarding the Capital Outlay. Mr. Lukasik stated some items were "wish list"
items and would need to be moved off the list if they were not funded.
FY 2018 SUMMARY OF BUDGET CHANGES — COUNTRY CLUB
Mr. Lukasik explained adjustments since the last workshop, including:
Driving Range revenue assumption changed — ($89,342)
Updated personnel costs — ($23,814)
o Change pay grade for Director of Golf
o Add one (1) part-time instructor
o Health insurance estimate increased
• Total — ($113,156)
Discussion ensued regarding opportunities to drive revenue and about the condition of the driving
range. Golf Director Casey Mitchell shared insight on maintenance of the range.
COUNTRY CLUB BUDGET
Mr. Lukasik reviewed the Parks & Recreation organizational chart, noting changes for FY 2018
because of outsourcing the food and beverage operations and making adjustments to classifications
Minutes of Village Council Budget Workshop Session held August 9, 2017 Page 5 of 5
under golf. He stated that staff was still working to draw down personnel costs and discussed
efforts to create additional flexibility within the part-time staff.
Mr. Lukasik pointed out the impact of food and beverage on the budget and asked that Council
think about how they would like the service to look moving forward. He shared details of related
maintenance needs at the Country Club. Discussion ensued regarding options, food trucks, and
uses for the temporary trailers. Mr. Lukasik stated staff would brainstorm internally and come back
with additional suggestions.
Mr. Lukasik reviewed the Country Club 10 -year CIP and FY 2018 Capital Outlay planned, totaling
$1,549,305. He stated the Golf Advisory Board would be recommending a loan in an amount not
to exceed $1.5 million from the General Fund to finance the Golf Course renovation project. He
noted that he would like to start planning out maj or investments in infrastructure utilizing the
Enterprise Funds and provided examples. Discussion ensued regarding past savings programs,
expenses at the Country Club, and investments.
Golf Director Casey Mitchell responded to comments regarding increasing fees. Discussion continued
on competitor rates and options.
ADJOURNMENT
Mr. Lukasik reviewed the remaining meetings in the budget workshop schedule.
With no further business to come before the Council, the meeting adjourned at 8:44 p.m.
Com16ted by Jessica Green, MMC, Village Clerk
FY 2018 Budget
FY 2017 Budget
% increase/ decrease
Total Revenues
$25876,440
$3,842,855
-25.15%
Total Expenses
$2,876,440
$3,842,855
-25.15%
Number of Rounds
$25,044
$44,050
-43.15%
Mr. Lukasik pointed out the impact of food and beverage on the budget and asked that Council
think about how they would like the service to look moving forward. He shared details of related
maintenance needs at the Country Club. Discussion ensued regarding options, food trucks, and
uses for the temporary trailers. Mr. Lukasik stated staff would brainstorm internally and come back
with additional suggestions.
Mr. Lukasik reviewed the Country Club 10 -year CIP and FY 2018 Capital Outlay planned, totaling
$1,549,305. He stated the Golf Advisory Board would be recommending a loan in an amount not
to exceed $1.5 million from the General Fund to finance the Golf Course renovation project. He
noted that he would like to start planning out maj or investments in infrastructure utilizing the
Enterprise Funds and provided examples. Discussion ensued regarding past savings programs,
expenses at the Country Club, and investments.
Golf Director Casey Mitchell responded to comments regarding increasing fees. Discussion continued
on competitor rates and options.
ADJOURNMENT
Mr. Lukasik reviewed the remaining meetings in the budget workshop schedule.
With no further business to come before the Council, the meeting adjourned at 8:44 p.m.
Com16ted by Jessica Green, MMC, Village Clerk