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08-15-2020 VC B WS-MMINUTES OF BUDGET WORKSHOP SESSION VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA August 15, 2020 Present: Susan Bickel, Mayor Mark Mullinix, Vice Mayor David B. Norris, President Pro Tem Darryl C. Aubrey, Sc.D, Councilmember Deborah Searcy, Councilmember Andrew D. Lukasik, Village Manager Leonard G. Rubin, P.A., Village Attorney Jessica Green, Village Clerk ROLL CALL Mayor Bickel called the meeting to order at 9:00 a.m. All members of Council were present. All members of staff were present. Mr. Lukasik announced that the meeting was also available virtually and that members of the public were permitted to attend and submit questions via the Zoom virtual meeting platform. PURPOSE OF THE MEETING • FY 2021 General Overview • FY 2021 REVENUE CHANGES/ MILLAGE REQUIREMENT • FY 2021 PERSONNEL COSTS/ASSUMPTIONS • FY 2021 CIP • FY 2021 VEHICLE LEASES • FY 2021 GENERAL FUND — DEPARTMENTAL SUMMARIES • FY 2021 COUNTRY CLUB BUDGET • FY2021 DEBT ALLOCATIONS FY 2021 ANNUAL BUDGET SUMMARY Mr. Lukasik presented the General Fund budget summary. Mr. Lukasik stated that there was some restructuring to the Tennis and Pool Operations, which are included under the Country Club Budget. Category General Fund Country Club Total Millage Rate $7.50 N/A $7.50 Personnel $17,083,228 $1,850,013 $18,933,241 Operating $6,186,569 $300,429 $9,246,998 Debt Service $1,640,000 $433,689 $2,0739689 Capital Outlay $10,000 $99,500 $109,500 CIP Transfer $5109000 0 $510,000 Contingency 0 0 0 Transfer to Other Funds $274,000 0 $27400 Total $2597039017 $594439631 $3191479428 Village Council Workshop Session held August 15, 2020 Page 2 of 8 Position Type General Fund Country Club Total Full -Time 142 10 152 Part -Time 49 55 104 FY 2021 COUNTRY CLUB BUDGET SUMMARY Mr. Lukasik outlined the Country Club budget summary and changes and discussed the sources of revenue and expenses. % Increase/ $ Increase/ Category FY 2021 FY 2020 Decrease Decrease Personnel $1,850,013 $1,006,219 83.86% $843,794 Operating $300,429 $2,543,680 579% $925,411 Capital Outlay $99,500 0 0 $99,500 Debt Service $43309 $433,689 0 0 Total Budget $594439631 $399839588 36.65% $194609043 FY 2021 TAXABLE VAULE AND MILLAGE SELECTION FY 2021 FY 2020 % Increase / $ Increase / Decrease Decrease Millage Rate $7.50 mils $7.50 mils 0% $0 Gross Taxable Value $2,437,532,823 $2,344,581,746 3.96% $92,951,077 Budgeted Ad -Valorem $17,367,421 $16,736,574 3.81% $630,847 The rollback rate is $7.2247. Mr. Lukasik reviewed the millage table and presented the impact of three (3) millage rate options: Description Millage Rate Retain FY 20 $7.5000 Millage Rate FY 2021 7.4573 (Majority Vote) FY 2021 (Two -Thirds Vote) 8.2030 Budgetary Ad- $ Increase/ Valorem (Decrease) over 2020 Ad -Valorem $17,367,421 $630,847 $17,268,543 $531,969 $18,995,328 $2,258,754 The Tentative Millage Rate is $7.50 mils. DECLINE IN FY 2021 GENERAL FUND REVENUE ESTIMATES (Decrease) over FY21 RBR 3.81% 3.22% 13.54% Mr. Lukasik discussed a potential decline in several revenue categories for FY21 due to COVID, and stated that projections were adjusted accordingly. The revised revenue estimates in the budget are based on actual changes in the Village's revenues and estimates provided by the Florida Office of Economic and Demographic Research (EDR). These estimates were released on July 30th, with a note of caution: Village Council Workshop Session held August 15, 2020 Page 3 of 8 "Local Government officials should be very cautious and conservative in their budgeting for the upcoming fiscal year. There is still much uncertainty as to how the effects of the global pandemic will impact state and local revenues in FY 2020-21." Mr. Lukasik discussed Capital Improvement Plan projects by funding source and category. Mr. Lukasik stated that many projects would be funded by grants. Discussion ensued regarding grant funding and how projects would be funded if grant funding is not available. Mr. Lukasik provided an overview of Capital Outlay projects for FY21. Discussion ensued regarding Anchorage Park Dry Storage and the need for additional storage as recommended by the Recreation Advisory Board. Additional discussion included the anticipated completion date for the Prosperity Farms Bridge Improvement project and the status of the US 1 Pilot Program. Mr. Lukasik reviewed a schedule of vehicle lease program payments. Discussion ensued regarding replacing aging vehicles and lease purchase financing. Mr. Lukasik summarized highlights of the General Fund, including: • Decline in several revenue categories due to COVID. • Major upcoming issues: o Master Plan implementation ■ US 1 Lane Repurposing Study ■ Redevelopment Code Implementation ■ Residential Code Update ■ Bridge Project Planning o Underground Overhead Lines o Anchorage Park Dry Storage • Personnel Costs o Generally flat in terms of staffing. Delay in new hire and filling open positions when possible. o Health — increase 0.3% or $6,900 o Pension — slight reduction for PD/FR due to State and Employee Contributions • Vehicle lease summary: o Two Rear Load Sanitation Trucks and three police vehicles o Continue to re-evaluate Village's policy on vehicle leasing. • Clubhouse Debt Service Mr. Lukasik provided an overview of FY21 General Fund expenses, and stated that there were no significant changes. Council requested a three-year history of expenditures to assist in their review of budget trends. Mr. Lukasik discussed Strategic Planning. Mr. Lukasik suggested streamlining to a less formal process internally. Mr. Lukasik recommended using the Consultants for high level conversations related to development of the Town's Vision, Mission and Values. By consensus, the Council agreed. Mr. Lukasik discussed Initiatives and Projects, including: Village Council Workshop Session held August 15, 2020 Page 4 of 8 Strategic Initiatives for FY21: • Commercial Business Initiatives • Annexation o Develop an action plan with Council input • USI/Prosperity Farms Road Bridges • Undergrounding • NPBDD generator • US 1 Lane Repurposing Policy • Green/Sustainable Policy o Possible Environmental Committee project Future Strategic Initiatives: • Congress Avenue • Charter Review — Low Priority • Infrastructure Strategy along US 1 Corridor - Low Priority • WIN Process — Low Priority • Earman Boardwalk o To be addressed during bridge design and construction and redevelopment • Prosperity Farms Road Corridor o To be addressed during bridge design and construction GOALS AND OBJECTIVES FOR FY21 BY DEPARTMENT • Village Clerk o Streamline interdepartmental procedures o Improve interdepartmental procedures with Special Magistrate Hearings o Evaluate records and dispose of records that have met retention • Finance Department o Assist in review of fees to replace Ad -Valorem o Collaborate with other Departments on Strategic Initiatives • Human Resources o Re-establish Wellness activities, including the Health Fair o Resume Performance Evaluation tools o Review Health Insurance options for FY 22 • Information Technology o Cybersecurity Integrity Audit ■ Testing to identify critical flaws in the network ■ Solutions to mitigate discovered issues. • Police Department 0 7.8% decrease in operating costs for FY21 o Detailed report presented with a justification of overtime costs • Fire Rescue o Add one (1) part-time Administrative Assistant. o Increases in medical supplies and pharmaceutical purchases ■ COVID and the need for additional PPE Village Council Workshop Session held August 15, 2020 Page 5 of 8 ■ New regulations in place for pharmaceuticals, must be purchased in bulk o Uniforms for both career and volunteer personnel Council asked if there was a possibility of purchasing in bulk with other agencies to reduce costs. The Fire Chief stated that DEA requirements do not permit this. • Public Safety Building o No changes • Public Works Department o Personnel changes — eliminate one position o Major operating expenditures o Update to ongoing projects ■ Stormwater Master Plan ■ West Alleyway Pavement Project o Future Strategic Plan Projects ■ Lakeside Park Seawall Construction ■ Anchorage Park South Marina Reconstruction ■ East Alleyway Wall Replacement ■ Monet Road Seawall Study ■ Lighthouse Drive Bridge Replacement and Traffic Calming ■ Marina Drive Streetscape Improvements — Low priority ■ Public Works Complex Construction/Study — Low Priority o Contractual Services o Facility Services o Vehicle Maintenance — increase due to aging fleet o Sanitation Fees ■ Revise Sanitation Ordinance ■ Sanitation Commercial Fee Structure ■ Implement a Residential Fee — Council direction needed o Streets and Grounds Maintenance Council discussed poor street lighting and asked if there was a plan in place to address the issue. Public Works Director Hallock would reach out to FPL to request a study to identify where additional lighting may be needed. Council discussed outsourcing vehicle maintenance. Public Works Director Hallock stated that he is in the process of preparing a cost comparison study, and also discussed other services currently outsourced. • Community Development o Strategic Initiatives ■ Operationalize Code Compliance ■ Revised Boat/RV Ordinance ■ New Business Friendly Code ■ Residential Zoning Code ■ Twin City Mall Redevelopment ■ Waterfront Master Plan — FY 2022/2023 ■ Update Sign Code — Low priority ■ Bicycle Network Plan — Low priority o New In-house Building Official Added Village Council Workshop Session held August 15, 2020 Page 6 of 8 o Community Planning ■ Developer Fees ■ Contractual Services o Building Department ■ Professional Services o Code Enforcement • Library 0 50th Anniversary o Fundraising o Launch of New Programs o Electronic Resources o Assist other Departments during COVID o Virtual Programs o Newspaper Subscriptions • Parks & Recreation o Strategic Initiatives ■ Renovate Dry Storage at Anchorage Park ■ Reconstruction of Anchorage Park South Marina o Friends of the Dog Park Committee o Online Registration for Boat Ramp Decals — Pilot Program o Standardize Fees and Agreements with Instructors o Renovate Outdoor Basketball Courts at Osborne Park o Replace Playground at Community Center o Park Equipment/Furniture Replacement o Renovate Playground at Lakeside Park o Increase Staffing Hours at Community Center o Delay Anchorage Park Sand Volleyball Court Renovation and Anchorage Playground Parts o Update on Youth Sports & Programs o Collaborate with Country Club to Incorporate New Programs (There was a recess from approximately 12:03 pm to 12:25 pm.) During this time, Council was asked to review and vote on color samples. A standardized color format will be used for future marketing materials. • Country Club o Golf Operations ■ Propose 3% Increase in Membership Dues ■ Propose to Increase Walk-in Rates ■ Add one (1) Full-time Assistant Golf Professional ■ Increase in Course Maintenance • Funding for Bunker and Pond Improvements ■ Upgrades to Course — Capital ■ FY 21 Capital Improvements • Driving Range Mat Replacement • Clock Staging Area • Bag Drop-off and Starting Area Shade Structures ■ FY22 Capital Improvements Village Council Workshop Session held August 15, 2020 • Pond Restoration ■ FY24 Capital Improvements • Member Short Game Area o Food and Beverage Operations ■ Partner with Farmer's Table ■ $1,200 Shared Membership Fee — Clubhouse and Farmer's Table o Pool Operations ■ Offset Costs by Transferring from General Fund ■ Increased costs due to Pool Maintenance and Tennis Pros ■ Proposed 3% Increase for Pool and Tennis Memberships ■ Introduce Annual Junior Tennis Academy ■ Strategic Initiatives • Pool Improvements • Pool Management Structure • Swim Walls — Low Priority • Cabana Rentals — Low Priority • Inflatable Rentals — Low Priority • Pool Slide — Low Priority Discussion ensued about the timing for improvements to the pool as proposed. o Tennis Operations ■ Strategic Initiatives • Review Structure Tennis Management Capital Improvements • Tennis Court Fencing • Tennis Court Lighting Page 7 of 8 There was a brief discussion regarding merchandise sales and outsourcing the management of the Tennis facility. Mr. Lukasik provided an overview of Clubhouse Debt Allocations. o Clubhouse Debt Service Recommendations ■ Delay in debt service payments to General Fund until other debt is retired or additional revenues are generated ■ Annual Review of Farmer's Table Lease ■ Implement by 2029 to coincide with the last year of Golf Course debt payments ■ Evaluate Enterprise Fund on an annual basis to expedite General Fund repayment FY 2021 BUDGET HEARING AND WORKSHOP DATES Mr. Lukasik outlined the Budget Workshop and Public Hearing dates: • Budget Workshop August 26, 2020 (if needed) • 1 St Public Hearing September 10, 2020 • 2nd Public Hearing September 24, 2020 Village Council Workshop Session held August 15, 2020 ADJOURNMENT Page 8 of 8 With no further business to come before the Council, the meeting adjourned at 1:59 p.m. Je si i a Green, M C, Village Clerk �..