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08-17-2016 VC BWS-MPresent: ROLL CALL MINUTES OF THE BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA AUGUST 17, 2016 David B. Norris, Mayor Doug Bush, Vice Mayor Darryl C. Aubrey, Sc.D., President Pro Tem Robert A. Gebbia, Councilmember Mark Mullinix, Councilmember James P. Kelly, 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. Also present were Finance Director Sarnia Janjua, Human Resources Director Britoni Garson, Information Technology Director Michael Applegate, and Public Works Director Brian Moree. PURPOSE OF THE MEETING Mr. Kelly explained the purpose of the meeting was to review the changes to the FY 2017 (FYI 7) Country Club and General Fund budgets and to discuss the proposed FYI Public Works budget. FY 2017 SUMMARY OF BUDGET CHANGES — COUNTRY CLUB AND GENERAL FUND Mr. Kelly noted changes to the FYI Country Club budget as follows: • Utilize reserves to balance budget - $53,208 • Updated personnel costs — ($65,299) o Health insurance o Fund "unfunded" position o Update merit and vacant positions through July 31, 2016 • Decrease estimate for Property & Casualty insurance - $7,014 Mr. Kelly explained the contingency was exhausted after the changes. He reviewed the changes to the FYI General Fund budget as follows: • Increase Intergovernmental revenue estimate - $26,000 • Decrease Tennis revenue estimate — ($35,000) • Decrease Library stated aid revenue estimate — ($1,021) • Updated personnel costs — ($27,415) o Health insurance o Director of Library salary and benefits o Police salary and benefits o Update merit and vacant positions through July 31, 2016 • Increase estimate for Accounting and Auditing services — ($3,000) • Decrease budget estimate for Council conferences and seminars - $1,070 • Decrease budget estimate for Council travel expenses - $3,000 • Increase budget estimate for Village Attorney — ($45,000) • Decrease budget estimate for Property & Casualty insurance - $50,576 Mr. Kelly stated the General Fund budget had a current contingency of ($3 0,790). Village Council Budget Workshop Session held August 17, 2016 Page 2 of 5 PUBLIC WORKS ' Mr. Kelly noted the budget and organizational chart for the Public Works Department had been revised, but the number of employees remained steady at 34 full-time and no part-time employees. He explained changes included moving a Fleet and Facilities Senior Trades Mechanic to the position of Mechanical Systems Coordinator and in the Sanitation Division, moving a Sanitation Collector to Sanitation Driver/Operator. Public Works Director Brian Moree explained the changes as well as the difference between the positions. Discussion continued regarding the needs of the department. FY 2017 Budget FY 2016 Budget % increase/ decrease $ increase/ decrease Personnel $2,50105 $2,50403 -0.12% ($2,968) Operating $2,201,945 $1)808,897 21.73% $393,048 Total Expenses $4,703,640 $4,313,560 9.04% $39000 PUBLIC WORKS ADMINISTRATION FY 2017 Budget FY 2016 Budget % increase/ decrease $ increase/ decrease Personnel $214,901 $21400 0.42% $901 Operating $128,918 $56,316 128.92% $72,602 Total Expenses $343,819 $270,316 27.19% $73,503 Mr. Moree discussed the Professional Services line item for $70,000 briefly, explaining it was for the development of standard operating procedures, an operations manual, and support for the American Public Works Association accreditation initiative. Discussion continued regarding the training and recovery support services to be prepared for future FEMA reimbursement processes. FACILITY SERVICES Mr. Moree reviewed the increase to the proposed repair and maintenance expenditures. Discussion ensued regarding capital categories and energy efficient projects. VEHICLE MAINTENANCE FY 2017 Budget FY 2017 Budget FY 2016 Budget % increase/ decrease $ increase/ decrease Personnel $323,850 $313,840 3.19% $10,010 Operating $430,350 $324,100 32.78% $106,250 Total Expenses $754,200 $637,940 18.22% $116,260 Mr. Moree reviewed the increase to the proposed repair and maintenance expenditures. Discussion ensued regarding capital categories and energy efficient projects. VEHICLE MAINTENANCE FY 2017 Budget FY 2016 Budget % increase/ decrease $ increase/ decrease Personnel $230,561 $222,816 3.48% $7,745 Operating $257,450 $215,250 19.61% $42,200 Total Expenses $488,011 $43806 11.40% $49,945 Mr. Moree confirmed the vehicle maintenance budget covered all 103 Village vehicles but did not include equipment such as bobcats and skid steers. He noted expenditures reflected an aging fleet. Village Council Budget Workshop Session held August 17, 2016 Page 3 of 5 VEHICLE MAINTENANCE continued Ms. Janjua detailed vehicle expenses in the Police Department budget. Discussion ensued regarding the Capital Improvement Plan for purchase of new vehicles. Council requested a report on the average age of vehicles, fleet age per vehicle type, and insurance reimbursements. Councilmembers asked what percentage of the vehicle maintenance costs were for the jitneys. Mr. Moree stated the expense was approximately $7,000 to $8,000 per jitney per year. He discussed difficulties in obtaining parts for the jitneys. SANITATION FY 2017 Budget FY 2016 Budget % increase/ decrease $ increase/ decrease Personnel $1,266,325 $1,265,484 0.07% $841 Operating $262,500 $163,000 61.04% $99,500 Total Expenses $11528,825 $1,428,484 7.02% $100,341 Councilmembers asked questions regarding a decrease in salary and benefits reflected in the budget. Mr. Moree responded. Mr. Kelly reviewed a comparison of Workers' Compensation claims and costs. Discussion ensued concerning staffing levels and overtime in the Sanitation Department, including the cost of vacancies, employee preference, and the cost of adding positions. Ms. Janjua reviewed the budgeted versus actual overtime expenses. Council decided by consensus to add two (2) Sanitation Driver/Operator positions and find savings elsewhere in the budget. Discussion continued on solid waste disposal costs. Mr. Moree explained the increase was an increase in tonnage, not an increase in fees. Vice Mayor Bush suggested budgeting an effort to encourage recycling. STREETS AND GROUNDS MAINTENANCE FY 2017 Budget FY 2016 Budget % increase/ decrease $ increase/ decrease Personnel $466,058 $488,523 -4.60% ($22,465) Operating $1,122,727 $1,050,754 6.90% $72,496 Total Expenses $1,588,785 $1,538,754 3.25% $50,031 Mr. Moree and Mr. Kelly reviewed the increase in contractual services from $500,000 to $555,000. Discussion ensued regarding the athletic fields, maintenance contract, field conditions, use of the fields, and costs associated with repair of damage caused by use. Council asked questions regarding the budget for materials and supplies. Mr. Moree responded. He continued to detail proposed expenditures for trees and sod by roadway. Ms. Janjua reviewed the list in detail. Discussion continued regarding repair and maintenance projects and expenses for FYI 6 and FYI 7. Village Council Budget Workshop Session held August 17, 2016 STREETS AND GROUNDS MAINTENANCE continued Page 4 of 5 Mr. Moree explained replacement of the laminate on the street sign blades. He stated the estimated lifespan of the old product was three (3) to five (5) years and the minimum life expectancy of the new product was ten (10) years. Discussion continued on line items for professional services, utilities, and street lights. PUBLIC WORKS REVENUES Council asked questions about cardboard collection and Mr. Moree responded. PUBLIC WORKS OPERATING DISCUSSION Council and staff reviewed additional Public Works budget items. Mr. Kelly discussed potential purchase of a Kubota as a satellite (jitney) replacement vehicle. Consensus was reached to purchase one (1) Kubota in FYI 6 as a test. Mr. Kelly reviewed a proportional measurement of the operating budget and use of satellite vehicles by category of service. He discussed use of reserves, ad -valorem assessment, or user fees needed to create a program of replacement for the vehicles, as follows: o Commercial Sanitation - Demand o Multi -Family Sanitation - $8-$10/month o Single -Family Sanitation - $38-$40/month Council discussed the benefits and tradeoffs with each option. Councilmembers expressed concern regarding implementing user fees in FY17. Discussion continued regarding the ability for local municipalities to create a fee structure and the potential impacts of legislative action, as well as the public perception associated with asking residents to pay costs. Mr. Kelly explained the timeline for implementation of a future non -ad valorem assessment, including advertising in early November 2016 for implementation in FYI 8. Discussion continued on the proportional benefit in the community and the need for more specific calculations to share with the public. Council agreed by consensus to move forward with the advertising requirements to allow the option to implement the fee while continuing to research the options. Discussion continued regarding holding workshops on the issue. Mr. Kelly reviewed the options for a Streets and Grounds fee to fund stormwater system maintenance, staffing, capital reserve, and capital projects in the Streets and Grounds budget., He outlined the estimated budget impact of a fee of $3, $4, and $5 per household. FY 2017 Budget FY 2016 Budget Fees — Refuse $50000 $499,900 Collection Cardboard $17,500 $12,500 Recycling Total Revenues $517,500 $511,500 Council asked questions about cardboard collection and Mr. Moree responded. PUBLIC WORKS OPERATING DISCUSSION Council and staff reviewed additional Public Works budget items. Mr. Kelly discussed potential purchase of a Kubota as a satellite (jitney) replacement vehicle. Consensus was reached to purchase one (1) Kubota in FYI 6 as a test. Mr. Kelly reviewed a proportional measurement of the operating budget and use of satellite vehicles by category of service. He discussed use of reserves, ad -valorem assessment, or user fees needed to create a program of replacement for the vehicles, as follows: o Commercial Sanitation - Demand o Multi -Family Sanitation - $8-$10/month o Single -Family Sanitation - $38-$40/month Council discussed the benefits and tradeoffs with each option. Councilmembers expressed concern regarding implementing user fees in FY17. Discussion continued regarding the ability for local municipalities to create a fee structure and the potential impacts of legislative action, as well as the public perception associated with asking residents to pay costs. Mr. Kelly explained the timeline for implementation of a future non -ad valorem assessment, including advertising in early November 2016 for implementation in FYI 8. Discussion continued on the proportional benefit in the community and the need for more specific calculations to share with the public. Council agreed by consensus to move forward with the advertising requirements to allow the option to implement the fee while continuing to research the options. Discussion continued regarding holding workshops on the issue. Mr. Kelly reviewed the options for a Streets and Grounds fee to fund stormwater system maintenance, staffing, capital reserve, and capital projects in the Streets and Grounds budget., He outlined the estimated budget impact of a fee of $3, $4, and $5 per household. Village Council Budget Workshop Session held August 17, 2016 Page 5 of 5 BUDGET HEARINGS Mr. Kelly explained a budget hearing to review Police, Fire Rescue, and Community Development was scheduled for August 23 and the final budget hearing was a recap and Millage discussion scheduled for August 31. He noted the non -ad valorem decision would be placed on the October agenda. ADJOURNMENT There being no further business to come before the Council, the meeting adjourned at 9:07 p.m. CQ.pfeted by Jessica Green, MMC, Village Clerk V