08-11-2010 VC B WS-MMINUTES OF THE BUDGET WORKSHOP SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
• AUGUST 11, 2010
Present: William L. Manuel, Mayor
Darryl C. Aubrey, Sc.D., Vice Mayor
David B. Norris, President Pro Tem
T.R. Hernacki, P.E., Councilman
Robert A. Gebbia, Councilman
Jimmy Knight, Village Manager
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Manuel 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. Finance Director Samia Janjua,
Library Director Betty Sammis, Parks and Recreation Director Mark Hodgkins, and Community
Development Director Chuck Huffwere present.
Mr. Knight distributed copies of the FY 2011 General Fund Budget -August 11, 2010 presentation
concerning the departments of Library, Parks and Recreation, Village Council, Village Clerk,
Village Attorney, and Village Manager.
CAPITAL IMPROVEMENT PROJECTS
Discussion took place concerning the collective list of capital improvement projects proposed
by each councilman and priority rankings of the projects. Paying off the debt service was
ranked first and installing sidewalks in the western community was ranked second. Other
top-ranked items include making whole the General Employees Pension Plan, creating a
Veterans Memorial Park next to the Library, and updating street signs. By consensus,
Council agreed to address along-term list of capital projects at the end of the fiscal year and
determine if any additional projects would be funded from reserves. It was requested that
staff provide estimates on the cost to update street signs, create Veterans Memorial Park, and
add grills at Anchorage Park. Council will review the estimates and decide whether to move
forward with these projects.
5 YEAR CAPITAL IMPROVEMENT PLAN
• $361,200 for FY 2011 ($603,8441ess $242,644 to be funded from Capital Projects Fund)
TAX DISTRIBUTION SCHEDULE
ad valorem revenue is budgeted at 95%; actual receipt for FY 2010 as a percentage of
total ad valorem is 95.27%
LEISURE SERVICES
• • 31 ¢ of the property tax dollar in FY 2010 went to North Palm Beach, with 4¢ to Leisure
Services (Library and Parks & Recreation)
• Leisure Services comprises 14.19% of the total budget, or $2,585,374
Minutes of Village Council Budget Workshop Session held August 11, 2010 Page 2 of 4
PERSONNEL
• Discussion took place concerning the recommendation of the actuary that the General Employees
Pension Plan needs to reduce its assumed rate of return from 8% to 7%, and adjust the mortality
rate tables. It was noted that any reduction m the assumed rate of return should be done on an
incremental basis.
LIBRARY
• expenditures were at 69.26% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• no personnel changes
• projected revenues total $29,350 for FY 2011
• expenses for FY 2011 total $747,288, an increase of .34% or $2,513 from FY 2010
• capital expenses in FY 2011 total $10,642 to refurbish the downstairs public restrooms
• operating expenses include $9,500 to replace the carpet
2009-2010 statistics were provided for Adult circulation, Children's circulation, and computer lab use.
Discussion ensued on part-time pay. It was noted that a temporary position had been
inadvertently included; therefore, personnel costs will be reduced. Mr. Knight discussed
replacing the roof; air conditioning units, and lobby windows. These capital improvements are
planned for FY 2012.
PARKS AND RECREATION
• over 500 classes, taught by 60 independent contractors, were offered in FY 2010
• 2 personnel changes: minus 1 full-time position and adding 1 part-time position (not funded)
• projected revenues total $502,710 for FY 2011, including $32,000 for facility rental
• combined Recreation and Special Events, Pool, and Tennis expenses for FY 2011 total
$1,838,086, an increase of 11% or $188,796 from FY 2010
• combined capital expenses in FY 2011 total $139,300
RECREATION AND SPECIAL EVENTS
• expenses for FY 2011 total $1,064,780, an increase of 1.39% or $14,618 from FY 2010
• capital expenses in FY 2011 total $19,000, to replace one vehicle
Regarding the 5 Year Capital Improvement Plan, Mr. Knight noted FY 2012 projected expenditures
total $229,000, including $90,000 for re-lighting Osborne Park. Mr. Knight reported the Village
has applied for grant funding for this project.
POOL
• expenditures were at 77.53% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• projected pool revenues total $176,000 for FY 2011
• expenses for FY 2011 total $384,601, an increase of $94,677 from FY 2010
• capital expenses in FY 2011 total $101,000, for pump room renovation and lightning
• detection system
Regarding the 5 Year Capital Improvement Plan, Mr. Knight noted FY 2012 projected expenditures
total $225,000 for pool slides and wading pool renovation. Mr. Knight stated the Village has
applied for grant funding for these projects.
Minutes of Village Council Budget Workshop Session held August 11, 2010 Page 3 of 4
TENNIS
• • expenditures were at 102.1% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• projected revenues total $323,640 for FY 2011, an increase of $79,397 over FY 2010
• expenses for FY 2011 total $388,705, an increase of 25.7% or $79,501 from FY 2010
• capital expenses in FY 2011 total $11,800, to install a well and pump for court irrigation
Mr. Knight noted increases in tennis memberships and lessons, due to two new ladies teams in
FY 2011. Mr. Knight reviewed highlights of the Tennis & More contract. Mr. Knight described
changes in the tennis program, such as youth programs and evening matches. Regarding the
5 Year Capital Improvement Plan, Mr. Knight noted that the FY 2012 expenditure of $14,000 for a
maintenance cart would be deleted, as the Village has contracted for tennis court maintenance.
VILLAGE COUNCIL
• expenditures were at 80.43% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• expenses for FY 2011 total $128,496, an increase of 1.9% or $2,391 from FY 2010
• no capital expenses
Discussion took place concerning a "paperless" agenda with laptops installed on the dais in
Council Chambers.
VILLAGE CLERK
expenditures were at 78.12% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
projected revenues total $3,600 for FY 2011
expenses for FY 2011 total $280,337, an increase of 2% or $6,071 from FY 2010
VILLAGE ATTORNEY
• expenditures were at 54.75% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• expenses for FY 2011 total $170,000, no change from FY 2010
Mr. Knight advised that expenditures for the Village's labor attorney would increase toward the
end of FY 2010, as all three union contracts expire 9/30/10. Additionally, costs for the Code
Enforcement Special Magistrate are paid from the Village Attorney budget.
VILLAGE MANAGER
• expenditures were at 72.96% of the FY 2010 budget for the 3rd Quarter ending 6/30/10
• expenses for FY 2011 total $308,271, an increase of4.6% or $13,564 from FY 2010
• no capital expenses
CONSENSUS CHANGES
Mr. Knight reviewed changes to the budget, which result in a net budgetary impact of $720,316:
• proposed millage rate set at roll-back rate of $7.4802 mils
• • change in revenue assumptions resulting in an increase of $28,203
• Police & Fire pension contribution reduced from 18.5% to 17.86%, a reduction of $24,307
• Public Works Street Maintenance capital reclassified to "K" account (reduction of $110,464)
• Debt Payoff resulting in a reduction of $548,691
• $219,132 in Contingency (1.25% of total budget , a reduction of $8,651 from proposed budget)
Minutes of Village Council Budget Workshop Session held August 11, 2010 Page 4 of 4
Mr. Knight compared the FY 2011 Budget, as proposed, versus the FY 2010 Budget, and the
FY 2011 Budget, as adjusted, versus the FY 2010 Budget.
• Discussion took place concerning the potential for continued decreases in ad valorem revenue in
future years, due to reductions in the assessed value of property, combined with projected
increases in personnel costs. Discussion ensued on TABOR.
Mr. Knight listed the requirements under 197.363, Florida Statutes, for enacting a special
assessment for sanitation. It was determined to place this matter on the 8/26/2010 Workshop
Session agenda for further discussion.
NEXT BUDGET WORKSHOP DATE
The next Budget Workshop will be held on 8/25/2010 to review the Human Resources, Finance,
Information Technology, Community Development, and Debt and Other departmental budgets.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 9:15 p.m.
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Melissa Teal, CMC, Village Cler
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