07-20-2016 VC BWS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JULY 209 2016
Present: 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
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.
PURPOSE OF THE MEETING
Mr. Kelly explained the meeting would include an overview of the Fiscal Year 2016 and an
overview of the Fiscal Year 2017 proposed budget and Millage Rate.
FYI THIRD QUARTER REVIEW
f nnntry Chih
Description
Third Quarter FY16
Third Quarter FY15
Memberships
263
255
Rounds
34,412
35,045
Food & Beverage Shortfall
($167,853)
($84,178)
Total Revenues
$3,375,314
$3,322,475
Total Expenses
$3,040,686
$2,71807
Net Revenue/Expense
$3349628
$6039808
Mr. Kelly reviewed the third quarter budget for the Country Club. Mr. Kelly stated there was a
slight increase in the number of memberships and a decline in the number for rounds due to
significant weather delays, but a $145,000 sale of golf carts helped to offset the negative impact.
Mr. Kelly explained a change in Food and Beverage included a personnel increase of $85,539,
and expenses included $158,000 for Country Club architectural design services and a $112,000
balloon payment for cart lease. Mr. Kelly reviewed the Country Club budget amendments from
the Fiscal Year 2016 (FYI 6) original budget, which totaled $264,000 and stated the Country Club
expenses were generally on target with the Village's budget plan, tracking at 69.22 percent.
Mr. Kelly reviewed areas above the 75 percent benchmark, including:
• Accounting and Auditing
o Annual Audit
• Charge Card Fees
o Increased use of credit cards offset by increased revenue
Minutes of Village Council Budget Workshop Session held July 20, 2016 Page 2 of 5
• Merchandise
o Upfront purchase of merchandise
• Utilities
o Cost increased slightly above anticipated
• Capital Outlay
o Purchase of two (2) driving range ball dispensers
• Golf Cart Lease (Capital)
o Capital lease ended December 2015
Councilmembers asked questions regarding increased charge card fees and Finance Director Samia
Janjua explained.
Mr. Kelly reviewed a breakdown of Food and Beverage operations by quarter, including liquor
sales and inventory on hand. Discussion ensued regarding increased personnel costs and the costs
versus sales of liquor.
(-,,nr,ral Fnndl
Description
Third Quarter FY16
Third Quarter FY15
Total Revenues
$19,066,706
$17,934,387
Total Expenses
($14,548,536)
($14,4429590)
Net Revenue/Expense
$495189171
$394919797
Less: Transfers Out
($1,303,750)
($1,949,246)
Net Change
$392149421
$195429551
Mr. Kelly reviewed the General Fund budget amendments from FYI totaled $519,889, including
an open purchase order carryover of $313,454, small business grant carryover of $6,435, and grant
match of $200,000. Discussion ensued regarding developer fees.
Council reviewed the tax distribution schedule and discounts.
Mr. Kelly stated the General Fund expenses were generally on target with the Village's budget
plan, tracking at 73.70 percent. Mr. Kelly reviewed areas above the 75 percent benchmark,
including:
• Police
o Salary and benefits associated with Police overtime and CBA
• Sanitation
o Overtime expenses, contractual services, solid waste disposal, and overage due to
increase in garbage truck and jitney repairs.
• Tennis
o Tennis Club expenses offset by Program Revenue
Discussion ensued regarding personnel expenses in the Sanitation Department, and Council
decided to review further during budget hearings for that department.
Minutes of Village Council Budget Workshop Session held July 20, 2016 Page 3 of 5
Mr. Kelly discussed Tennis and Pool operations through the third quarter as compared to FY 15,
j" explaining an increase in pool gas expense was due to expenses of $15,000 related to a gas leak
and pool repairs of $16,500.
Discussion continued on Tennis, including court availability and whether revenue and expenses
would continue the same trend into FYI 7.
FY17 PROPOSED BUDGET OVERVIEW
Mr. Kelly reviewed the summary of the proposed budget for FY 17, beginning with an overview
as follows:
Category
General Fund
Country Club
Total
Millage Rate
7.4915
7.4195
Personnel
$14,735,720
$1,160,815
$15,896,535
Operating
$5,879,261,
$29226,412
$8,1059673
Capital
$0
$7,000
$7,000
Debt Service
$0
$398,151
$3989151
Transfer Out
$977,400
$0
$977,400
Contingency
$0
$5,077
$59077
Total
$2195929381
$397979455
$259389,836
Mr. Kelly discussed proposed position changes, including:
• Country Club
o Add four (4) Food and Beverage Personnel (part-time)
o Delete four (4) Snack Bar Attendant (part-time)
o Delete one (1) Line Cook (part-time)
o Add one (1) Golf Member Relations Coordinator (full-time)
o Delete one (1) Golf Member Relations Coordinator (part-time)
o Delete one (1) Director of Food and Beverage (full-time)
Councilmembers asked questions, and Mr. Kelly explained there had been difficulty with
classification of restaurant staff, so adjustments were proposed to meet changing needs.
• General Fund
o Add one (1) Sanitation Driver/Operator (full-time)
o Delete one (1) Sanitation Collector (full-time)
o Delete one (1) Accounting Clerk (full-time)
o Add one (1) Administrative Assistant — Building Department (part-time)
o Add one (1) Mechanical Systems Coordinator (full-time)
o Delete one (1) Senior Trades Mechanic (full-time)
o Add one (1) License and Permit Supervisor (full-time)
o Add one (1) Purchasing Agent (full-time)
o Delete one (1) Project and Procurement Manager (full-time)
o Add one (1) Senior Fire Inspector (full-time)
o Delete one (1) Fire Inspector (full-time)
Minutes of Village Council Budget Workshop Session held July 20, 2016 Page 4 of 5
o Add one (1) Director of Purchasing (part-time)
o Add one (1) Director of Special Projects (full-time)
o Add one (1) District Chief (full-time)
o Delete one (1) Fire Captain (full-time)
Public Works Director Brian Moree explained the reasoning behind shifting away from having
Sanitation Collectors toward everyone having a CDL and being a driver. Discussion continued
regarding training availability and interest.
Mr. Kelly discussed the changing needs in Human Resources and Purchasing due to shifting duties.
Mr. Kelly explained the need to address the large backlog of document scanning in the Building
Department.
Vice Mayor Bush stated he did not like adding positions for a temporary job and suggested the option
to make the position contract be analyzed. Discussion ensued.
Mr. Kelly explained the net change of both funds combined was one (1) additional full-time
position and one (1) less part-time position, for a total workforce of 276. Mr. Kelly reviewed the
organization charts briefly and staff answered Councilmember questions regarding purchasing, the
Fire Department, and the restaurant.
Mr. Kelly reviewed the overview of the Country Club projected revenue and expenses by
department, as well as the budget highlights. Discussion ensued regarding budget assumptions
related to the restaurant and the need to make decisions at a future budget hearing, as well as the
expiration date for debt service.
Mr. Kelly shared the General Fund budget overview by department and category and discussed
budget highlights. Mr. Kelly reviewed the Capital Improvements planned, including vehicle
replacement, and discussion continued on replacement of the jitneys and whether the vehicles
needed to be street legal.
President Pro Tem Aubrey asked for an in-depth discussion regarding moving Sanitation from Ad
Valorem to fee basis. President Pro Tem Aubrey stated the current situation was somewhat
regressive. Discussion continued, and Mr. Kelly explained Public Works was scheduled for its
own budget hearing on August 17.
FYI MILLAGE RATE
Mr. Kelly shared a table of the options for the FYI Millage Rate and explained his proposal was
a rate of 7.4915 mils, including a Capital Improvement Plan (CIP) transfer of $977,400. Mr. Kelly
stated the rate was an increase of 9.25 percent over the FYI rollback rate.
Discussion ensued regarding the Millage Rate and the process of setting a maximum rate.
Finance Director Janjua provided the budget figures related to assorted scenarios. Consensus was
to retain the FY16 Millage Rate by reducing the CIP transfer to $693,864.
Minutes of Village Council Budget Workshop Session held July 20, 2016 Page 5 of 5
BUDGET MEETING SCHEDULE
Mr. Kelly reviewed the schedule of remaining budget workshops and hearings, including:
• Thursday, July 28, — Manager's Proposed Budget Presentation (first public hearings)
• Wednesday, August 3 — Golf, Restaurant, Administration, Parks and Recreation, Library
• Wednesday, August 10 — Council, Clerk, Village Attorney, Village Manager, Human
Resources, Finance, Purchasing, IT, Debt, and other
• Wednesday, August 17 — Public Works
• Tuesday, August 23 — Police, Fire Rescue, and Community Development Budgets
• Wednesday, August 31 — Budget Recap and Millage Discussion
Mayor Norris asked for an estimate of the unassigned fund balance at the end of FYI 7.
Finance Director Janjua stated she would provide an estimate in August.
ADJOURNMENT
There being no further business to come before the Council, the meeting adjourned at 8:18 p.m.
Comp eted by essica Green, MMC, Village Clerk