08-19-2021 VC B WS-MPresent:
ROLL CALL
MINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
AUGUST 19, 2021
Darryl C. Aubrey, Sc.D., Mayor
Deborah Searcy, Vice Mayor
Mark Mullinix, President Pro Tem
David B. Norris, Councilmember
Susan Bickel, Councilmember
Andrew D. Lukasik, Village Manager
Jessica Green, Village Clerk
Mayor Aubrey called the meeting to order at 6:00 p.m. All members of Council were present. All
members of staff were present, except the Village Attorney.
Mr. Lukasik announced that new microphones had been installed and that Councilmembers are to
turn them on when speaking.
The purpose of the meeting was to review the proposed FY 2022 Country Club Budget, Clubhouse
Project Repayment and other Financial Policies, Outstanding General Fund Policy Issue Review,
and a recap of the proposed Budget and Millage Rate.
Discussion regarding the Strategic Plan will be postponed to a later date.
Mr. Lukasik briefly discussed some Country Club highlights as follows:
• Golf
o Reduction in membership and preference given to residents
o Increase in outside rounds
o Capital Investments
• Pool and Tennis
o Increase in revenue and part-time costs
o Greater investment in building and grounds maintenance
o Transfer from General Fund
o Community share of operating purchase
o Initial renewal and replacement contribution
FY 2022 COUNTRY CLUB BUDGET SUMMARY
Mr. Lukasik provided a brief overview of the proposed FY 2022 Country Club budget as follows:
Category
FY 2022
FY 2021
$ Increase /
Decrease
% Increase /
Decrease
Personnel
$209,019
$1,850,013
$159,006
8.59%
Operating
3,318,960
3,060,429
258,531
8.45%
Debt Service
433,689
433,689
0
0.00%
Capital Outlay
200,000
99,500
100,500
101.01%
Reserves
125,000
0
1255000
0.00%
TOTAL
$690869668
$594439631
$6439037
11.81%
Minutes of Village Council Budget Workshop Session held August 19, 2021 Page 2 of 6
FY 2022 COUNTRY CLUB BUDGET SUMMARY continued
Number of Positions
FY 2022
FY 2021
Increase / (Decrease)
Full -Time
10
10
No Change
Part -Time
62
55
+7
General Manager Beth Davis introduced her staff and reviewed the Country Club budget by
operation.
Mr. Lukasik explained the transfer from the General Fund and appropriated retained earnings.
Ms. Davis recognized the efforts of her staff and provided some additional highlights for the Golf
Course as follows:
GOLF
• $3,921,392 total expenses; $0 increase from FY 2021
o Upgrade new Golf POS System
o Received the Distinguished Golf Destination award
o Top 20 Mini Golf Courses in the USA
o Great ROI on Driving Range
o Increased participation in Junior golf program
o Completed bunker remediation project
o Reclassified Gold Merchandising Assistant to part-time status
Head Golf Professional Allan Bowman discussed the membership fee schedule. A comment was
made by a public attendee, who did not identify himself. He suggested to include an additional
membership category for couples.
Mr. Bowman discussed an increase in credit card fees due to COVID-19. Brief discussion ensued
regarding increasing fees to absorb credit card fees. Continuing, Mr. Bowman reviewed operating
expenses and upcoming capital projects. The Environmental Committee will provide input for
plantings along the golf course.
Mr. Lukasik further discussed policy related to funding capital projects for the Golf Course.
GOLF COURSE CAPITAL CONTRIBUTION
• Operating budget to provide annual funding for capital projects
• Funding this year will provide resources for current projects
• Longterm projects (and life cycle) include:
o Greens (15-30 years)
o Irrigation (10-30 years)
o Bunkers (5-10 years)
o Maintenance Building and Wash Plant (40 years)
o Cart Paths (15-20 years)
o Ponds
Minutes of Village Council Budget Workshop Session held August 19, 2021 Page 3 of 6
FOOD & BEVERAGE
Ms. Davis discussed Food and Beverage highlights as follows:
• Total revenue $328,000
• Total expenses $15,000; -25% decrease or ($5,000) over FY 2021
o Lease established with Farmer's Table NPB, LLC (Operator)
o $5M gross revenue projected for year two of lease
o Operator to reimburse 50% of utility costs
o Operator to pay up to $12K for property tax assessment
o All facility upgrades and FF&E remain with the Country Club
o Operator responsible for all staffing and payroll related costs
o Operator coordinates with County Club GM
o Social dining membership program implemented — still a work in progress
POOL
Ms. Davis reviewed the Pool and Tennis Center budget and highlights for each as follows:
• Total expenses $351,676; 17.82% increase or $53,182 over FY 2021
o Increased memberships
o Installation of new pool heater and chiller
o Increase in swim lessons and pool rentals
o Consider adding Scuba Diving and SUP Exercise Classes
Council briefly discussed increasing membership fees and considering additional revenue sources.
`I II k"k i
• Total expenses $808,930; 4.11% increase or $31,938 over FY 2021
o Added Tennis Center Manager
o Added one (1) part-time Recreation Assistant
o FRDAP grant funding provided resurfacing of six (6) tennis courts, bench awnings,
and chilled water fountains
o Restructuring of professional instruction program
o Focus on customer -service and facility enhancements
o Enhance Tennis Academy — discussed by Donna Tollefsen, Tennis Center Manager
Discussion ensued regarding Google searches and options to improve the Tennis Center.
ADMINISTRATION & GROUNDS
Ms. Davis reviewed the budget summary for Administration and Grounds as follows:
Total expenses $989,670; 26.32% increase or $206,238 over FY 2021
COUNTRY CLUB CAPITAL PROJECTS
Ms. Davis briefly discussed Country Club Capital Projects totaling $1,534,000 for FY 2022-2024.
CLUBHOUSE CONSTRUCTION COSTS
Mr. Lukasik reviewed a detailed cost allocation related to debt structure and provided
recommendations for repayment of $14,096,766 for Clubhouse construction costs as follows:
o Debt service payments to the General Fund continue to be delayed until other debt is
retired, or additional revenue is generated
o Consider revenue changes to Farmer's Table lease renewal in 2024.
o By 2029, implement to coincide with the last year of Golf Course debt payments (estimated
annual payment of $470K for 30 years)
o Evaluate the Enterprise Fund annually to expedite General Fund repayment
Minutes of Village Council Budget Workshop Session held August 19, 2021 Page 4 of 6
GOLF DEBT SERVICE
Mr. Lukasik provided an overview of debt service for the Gold Course as follows:
FY
Golf Course
($4.89m)
Golf Course
($1.7m)
Total
2022
398,159
35,530
4335689
2023
398,159
35,530
433,689
2024
199,080
355530
2345610
2025
4479436
447,436
2026
4475436
447,436
2027
447,436
447,436
2028
447,436
447,436
Total
$9959398
$198969334
$298919732
OTHER POLICY ISSUES
• Clubhouse renewal and replacement
o Review methodology to target annual cash contribution
• Surplus Operating Funds:
o Golf — following operating/capital, debt, clubhouse R&R
o Golf surplus to go to a reserve account for operating and capital for golf only
Mr. Lukasik confirmed that he was not searching for direction at this point, he wanted to start a
dialogue for policy decisions will have to be made later.
Mr. Bowman requested approval of the membership fee schedule for Golf. By consensus, Council
approved the fee schedule as presented.
COMMERCIAL SOLID WASTE FEES
Mr. Lukasik provided the FY 2022 fee schedule changes for commercial solid waste. He presented
options to mitigate the impact to commercial customers as follows:
• Phase in over two years for all customers
o Year 1: 50% 2021 amount; 50% new rate
o Year 2: 100% new rate
• Phase in over two years for the most impacted customers (projected 50%+ increase)
o Year 1: 50% 2021 amount; 50% new rate
o Year 2: 100% new rate
• Recommendation to address those most impacted
o Compared to FY 2021 projected collections ($505,460), will be $64,840 less ($440,620)
with this strategy.
Mr. Lukasik confirmed that the Phased Options will slightly reduce revenue to the Village. Extensive
discussion ensued regarding allowing commercial customers to use their own solid waste haulers and
whether rates would be higher.
Minutes of Village Council Budget Workshop Session held August 19, 2021 Page 5 of 6
MINIMUM WAGE IMPLEMENTATION
Mr. Lukasik presented options and for minimum wage implementation and the budget impact for each
option as follows:
Full-time ONLY
Fund
$15 min
Proposed Budget
$ Increase
General Fund
$16,828,624
$16,825,308
$3,316
Country Club
2,014,403
2,009,019
5,384
Total
$18,8439027
$1898349327
$89700
Full -Time & Part -Time
Fund
$15 Min
Proposed Budget
$ Increase
General Fund
$1607,043
$16,825,308
$41,735
Country Club
2,137,110
209,019
128,091
Total
$1990049153
$18,8349327
$1699826
• $15/hour minimal impact for FTEs
• Greater impact for PTEs on Country Club Budget
FY 2022 Minimum Wage Impact Summary
Fund
$12 min
$13 min
$14 min
$15 min
Country Club
$5,118.10
$33,802.00
$79,306.97
$128,090.94
General Fund
45526.69
10,327.85
205623.35
415733.52
Total
$99644.79
$449129.85
$999930.33
$1699924.46
Mr. Bowman discussed salaries for employees in the Tennis Center. He added that increased salaries
assist in employee retention. By consensus, Council determined to increase the minimum wage to $13
in FY22. Mr. Lukasik will further review compaction issues. A final determination will be made during
the public hearings.
BUDGET RECAP
Mr. Lukasik discussed infrastructure maintenance projects and provided a recommendation to
establish a millage rate of 7.05 mils, which is less than the rolled -back rate.
FY 2022 MILLAGE RATE
Description
Millage Rate
Budgetary Ad -
Valorem
% Increase /
(decrease) over RBR
FY 2022 Rolled Back Rate
$7.1226
$17,796,873
0.00%
Previously Proposed Rate
$7.10
$1797409510
-0.32%
New Proposed Rate
$7.05
$1796159577
-1.02%
Minutes of Village Council Budget Workshop Session held August 19, 2021 Page 6 of 6
FY 2022 TAXABLE VALUE & MILLAGE SELECTION
MILLAGE SELECTION OPTIONS
Description
FY 2022
FY 2021
% Increase /
$ Increase /
Valorem
(Decrease)
(Decrease)
Millage Rate
$7.10 mils
$7.50 mils
-5.33%
($0.40)
Gross Taxable
$2,630,171,984
$25433,243,145
8.09%
$196,928,839
Value
$7.50
$18,739,975
$1,372,553
5.30%
Budgeted Ad-
$17,740,510
$17,367,421
2.15%
$3739088
Valorem
$7.1226
$17,796,873
$429,451
0.00%
MILLAGE SELECTION OPTIONS
Description
Millage Rate
Budgetary Ad-
$ Increase /
% Increase /
Valorem
(Decrease) over
(Decrease) over
2021 Ad-
FY 2022 RBR
Valorem
Retain FY 2021
$7.50
$18,739,975
$1,372,553
5.30%
Millage Rate
FY 2022 Rolled
$7.1226
$17,796,873
$429,451
0.00%
Back Rate
FY 2022 Majority
$7.4381
$1855859308
$1,2175886
4.43%
Vote Rate
FY 2022 Two-
$8.1819
$205443,814
$3,076,392
14.87%
Thirds Vote Rate
Previously
$7.10
$1797409510
$3735088
-0.32%
Proposed Rate
NEW Proposed
$7.05
$1796159577
$2489156
-1.02%
Rate
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 8:57 p.m.
Jet, a Green, MMC, Village Clerk