VILLAGE OF NORTH PALM BEACH FINANCE DEPARTMENT TO: Honorable Mayor and Council THRU: Andy Lukasik, Village Manager FROM: Samia Janjua, Director of Finance DATE: September 12, 2019 SUBJECT: ORDINANCE – 1st Reading of Final Ad Valorem Tax Millage Rate; and 1st Reading of Approved Fiscal 2019-2020 Village Budget The attached Ad Valorem Tax Ordinance and Annual Budget Ordinance have been prepared for Council’s use in setting the Village’s Ad Valorem Tax Millage Rate and Annual Budget for the upcoming 2019-20 fiscal year. Council’s budget and millage rate adjustments will be incorporated into Budget Summary and Notice of Proposed Tax Increase advertisements that will be published in the Palm Beach Post prior to the Village’s final Ad Valorem Tax Millage Rate and Annual Budget hearing on September 26, 2019. The attached Ordinances establish and adopt the Village’s Fiscal Year 2019-2020 budget and set its annual millage rate at $7.5000 mils. This millage rate is 4.46% above the Village’s Fiscal Year 2019-2020 Rolled-Back Rate of 7.1798 mils. This year’s Budget Ordinance provides for an appropriation of $417,150 to be transferred to the Capital Projects Fund to finance the General Fund’s Capital Improvement Plan. The Budget Ordinance also includes a Council Contingency of $231,795 for unanticipated expenditures. The attached Ordinances have been prepared and/or reviewed by the Village Attorney for legal sufficiency. Recommendation: The Administration recommends Council actions as outlined below: 1. Attorney reads title of Ordinance establishing and adopting an Ad Valorem tax millage rate for the fiscal year commencing 10/1/19 and ending 09/30/20. 2. Attorney reads title of Ordinance adopting a budget for the fiscal year commencing 10/01/19 and ending 09/30/20. 3. Motion to adopt an Ordinance establishing the Ad Valorem Tax Millage Rate as required by Statute. 4. Motion to adopt an Ordinance adopting the Budget for Fiscal Year 2019-2020.
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VILLAGE OF NORTH PALM BEACH FINANCE DEPARTMENT
TO: Honorable Mayor and Council THRU: Andy Lukasik, Village Manager FROM: Samia Janjua, Director of Finance DATE: September 12, 2019 SUBJECT: ORDINANCE – 1st Reading of Final Ad Valorem Tax Millage Rate; and 1st
Reading of Approved Fiscal 2019-2020 Village Budget The attached Ad Valorem Tax Ordinance and Annual Budget Ordinance have been prepared for Council’s use in setting the Village’s Ad Valorem Tax Millage Rate and Annual Budget for the upcoming 2019-20 fiscal year. Council’s budget and millage rate adjustments will be incorporated into Budget Summary and Notice of Proposed Tax Increase advertisements that will be published in the Palm Beach Post prior to the Village’s final Ad Valorem Tax Millage Rate and Annual Budget hearing on September 26, 2019. The attached Ordinances establish and adopt the Village’s Fiscal Year 2019-2020 budget and set its annual millage rate at $7.5000 mils. This millage rate is 4.46% above the Village’s Fiscal Year 2019-2020 Rolled-Back Rate of 7.1798 mils. This year’s Budget Ordinance provides for an appropriation of $417,150 to be transferred to the Capital Projects Fund to finance the General Fund’s Capital Improvement Plan. The Budget Ordinance also includes a Council Contingency of $231,795 for unanticipated expenditures. The attached Ordinances have been prepared and/or reviewed by the Village Attorney for legal sufficiency. Recommendation: The Administration recommends Council actions as outlined below:
1. Attorney reads title of Ordinance establishing and adopting an Ad Valorem tax millage rate for the fiscal year commencing 10/1/19 and ending 09/30/20.
2. Attorney reads title of Ordinance adopting a budget for the fiscal year
commencing 10/01/19 and ending 09/30/20.
3. Motion to adopt an Ordinance establishing the Ad Valorem Tax Millage Rate as required by Statute.
4. Motion to adopt an Ordinance adopting the Budget for Fiscal Year 2019-2020.
5. Staff presentation on BOTH Ad Valorem Tax Millage Rate and Budget.
6. Mayor Opens Public Hearing on BOTH Ad Valorem Tax Millage Rate and Budget.
7. Public Comment.
8. Mayor closes public hearing on BOTH Ad Valorem Tax Millage Rate and
Budget.
9. Council discussion on BOTH Ad Valorem Tax Millage Rate and Budget.
10. Motion to Establish Ad Valorem Tax Millage Rate and Council vote on Ad Valorem Tax Millage Rate.
11. Mayor publicly announces: (1) rolled back rate; (2) percentage increase over
rolled back rate; (3) millage rate to be levied.
12. Council vote on Motion to Adopt Ordinance establishing the Ad Valorem Tax Millage Rate on 1st reading.
13. Council vote on Motion to Adopt Ordinance adopting the Budget on 1st reading.
ORDINANCE NO. 2019-____ 1 2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3 NORTH PALM BEACH, FLORIDA, ESTABLISHING AND ADOPTING THE 4 FINAL LEVY OF AD VALOREM TAXES FOR THE FISCAL YEAR 5 COMMENCING OCTOBER 1, 2019 AND ENDING SEPTEMBER 30, 2020; 6 PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE 7 DATE. 8 9
WHEREAS, the Village Council and Village Administration of the Village of North Palm Beach, 10 having reviewed the budget for the fiscal year commencing October 1, 2019 and ending September 11 30, 2020 (“Fiscal Year 2019/2020”), have established a millage rate to finance said budget and 12 meet the needs and requirements of the Village and its residents. 13 14 NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 15 OF NORTH PALM BEACH, FLORIDA as follows: 16 17 Section 1. The Village Council hereby establishes and adopts an ad valorem tax operating 18 millage rate of 7.5000 mils for Fiscal Year 2019/2020 and an ad valorem debt service millage rate 19 of 0.000 mils for a total ad valorem tax millage rate of 7.5000 mils or $7.50 per one thousand 20 dollars of taxable assessed property value. This millage rate is 4.46% greater than the rolled back 21 rate of 7.1798 mils. 22 23 Section 2. All ordinances or parts of ordinances and resolutions or parts of resolutions in 24 conflict herewith are hereby repealed to the extent of such conflict. 25 26 Section 3. This Ordinance shall be effective immediately upon adoption and implemented as 27 of October 1, 2019. 28 29
PLACED ON FIRST READING THIS 12th DAY OF September, 2019. 30 31 PLACED ON SECOND, FINAL READING AND PASSED THIS 26th DAY OF 32 September, 2019. 33 34 35 36 (Village Seal) MAYOR 37 38 39 ATTEST: 40 41 42
VILLAGE CLERK 43 44
APPROVED AS TO FORM AND 45 LEGAL SUFFICIENCY: 46 47 48
VILLAGE ATTORNEY 49
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ORDINANCE NO. 2019-____ 1 2
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF 3 NORTH PALM BEACH, FLORIDA, ADOPTING THE ANNUAL BUDGET OF 4 THE VILLAGE OF NORTH PALM BEACH FOR THE FISCAL YEAR 5 COMMENCING OCTOBER 1, 2019 AND ENDING SEPTEMBER 30, 2020 6 AND AUTHORIZING ALLOCATIONS, APPROPRIATIONS AND 7 EXPENDITURES IN ACCORDANCE WITH THE BUDGET AND AS 8 AUTHORIZED BY LAW; APPROVING A COMPREHENSIVE PAY PLAN 9 AND AUTHORIZING THE VILLAGE MANAGER TO MAKE TEMPORARY 10 APPOINTMENTS TO BUDGETED POSITIONS; APPROVING A MASTER 11 FEE SCHEDULE; PROVIDING FOR THE CREATION OF GOVERNMENTAL 12 FUNDS WHEN NECESSARY; PROVIDING FOR THE RECEIPT OF GRANTS 13 OR GIFTS; PROVIDING PROCEDURES FOR BUDGET AMENDMENTS; 14 PROVIDING FOR THE LAPSE OF OUTSTANDING ENCUMBRANCES AND 15 THE RE-APPROPRIATION OF UNEXPENDED APPROPRIATIONS FOR THE 16 PRIOR FISCAL YEAR; PROVIDING FOR CONFLICTS; PROVIDING FOR 17 SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. 18
19 WHEREAS, on September 12, 2019 and September 26, 2019, the Village Council conducted duly 20 advertised public hearings to review the proposed Annual Budget for the fiscal year commencing 21 October 1, 2019 and ending September 30, 2020 (“Fiscal Year 2019/2020”) and has adopted a 22 final Annual Budget to meet the needs and requirements of the Village and its residents for the 23 upcoming fiscal year. 24 25 NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF THE VILLAGE 26 OF NORTH PALM BEACH, FLORIDA as follows: 27 28 Section 1. The proposed Annual Budget for Fiscal Year 2019/2020 attached hereto as Exhibit 29 “A” and incorporated herein by this reference is hereby adopted and established as the Village of 30 North Palm Beach’s Annual Budget for Fiscal Year 2019/2020. 31 32 Section 2. The amounts allocated in the Annual Budget for expenditure effective October 1, 33 2019 are authorized in accordance with the purposes as set forth in the Annual Budget. 34 35 Section 3. The Annual Budget includes an appropriation in the amount of $417,150.00 to be 36 transferred to the Capital Projects Fund to finance the General Fund’s Capital Improvement Plan. 37 38 Section 4. Except as otherwise provided herein, the Annual Budget establishes limitations on 39 expenditures by fund, and the total appropriation of each fund may not be increased or decreased 40 without specific authorization by a duly enacted Ordinance effecting such amendment or transfer. 41 42 Section 5. The Comprehensive Pay Plan, as set forth in the Annual Budget, is hereby 43 approved. In the event that an authorized position is vacant and monies are available within a 44 department’s salary appropriation to fund a temporary appointment to the vacant position, the 45 Village Manager may appoint a temporary employee to fill said vacant position for a period not to 46
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exceed 90 days. Said temporary appointment may be renewable for an additional 90-day period 1 and may only be made for the period pending the filling of the authorized position by a permanent 2 employee. The pay for a temporary employee shall be within the pay scale of an approved Village 3 Pay Plan position. The Village Council may revise the Comprehensive Pay Plan by Resolution 4 during the Fiscal Year without need to amend this Ordinance. 5 6 Section 6. The Master Fee Schedule for Fiscal Year 2019/2020, as set forth in the Annual 7 Budget, is hereby approved and adopted. The Village Council may revise the Master Fee Schedule 8 by Resolution during the Fiscal Year without need to amend this Ordinance. 9 10 Section 7. When the Village receives monies from any private or governmental source by gift, 11 grant, contribution or revenue share, to which there is attached as a condition of acceptance any 12 limitation regarding the use or expenditure of the monies received, the funds so received need not 13 be shown in the Annual Budget nor shall the Budget be subject to amendment or expenditure as a 14 result of the receipt of said monies. Said monies shall only be disbursed and applied toward the 15 purposes for which said funds were received. All monies received as contemplated by this section 16 shall be segregated and accounted for based on Generally Accepted Accounting Principles 17 (GAAP) and where appropriate, placed into separate and individual Governmental Fund accounts 18 from which monies are disbursed and applied in accordance with the terms and conditions of the 19 gift, grant or contribution. 20 21 Section 8. The omnibus appropriation and expenditure authorization set forth herein may be 22 temporarily or permanently suspended by Resolution of the Village Council if at any time it 23 appears that the projected revenue supporting the above-described budget is below anticipated 24 levels or may be temporarily or permanently suspended by Resolution of the Village Council for 25 any other reason or purpose deemed proper by the Village Council. 26 27 Section 9. Except as otherwise provided herein, in the event a variation from the total budget 28 appropriation is or becomes necessary, such variation shall only become legally effective upon the 29 adoption of an amending Ordinance consistent with Florida Statutes, the Village Charter and the 30 Village Code of Ordinances. 31 32 Section 10. All outstanding encumbrances for Non-Capital and Capital Expenditures on 33 September 30, 2019 shall lapse at that time, and all unexpended Capital Expenditure encumbrances 34 and appropriations and other encumbrances specifically designated to be carried over to the 35 subsequent year may be added to the corresponding approved 2019/2020 available budget balances 36 and be simultaneously re-appropriated for expenditure, as previously approved in the 2018/2019 37 Fiscal Year. 38 39 Section 11. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for 40 any reason held by a court of competent jurisdiction to be unconstitutional, inoperative or void, 41 such holding shall not affect the remainder of this Ordinance. 42 43 Section 12. All ordinances or parts of ordinances and resolutions or parts of resolutions in 44 conflict herewith are hereby repealed to the extent of such conflict. 45 46
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Section 13. This Ordinance shall be effective immediately upon adoption and shall be 1 implemented October 1, 2019. 2 3
PLACED ON FIRST READING THIS 12th DAY OF September, 2019. 4 5
PLACED ON SECOND, FINAL READING AND PASSED THIS 26th DAY OF 6 September, 2019. 7
8 9
10 (Village Seal) MAYOR 11 12 13 ATTEST: 14 15 16
VILLAGE CLERK 17 18
APPROVED AS TO FORM AND 19 LEGAL SUFFICIENCY: 20 21 22
VILLAGE ATTORNEY 23
General Fund & Country Club Combined Budget Summary FY 2020
The Village adopts an annual budget for two funds: General Fund and Country Club. The combined budget summary for both funds is presented below.
Combined Budget Summary FY 2020
Adopted Budget FY 2019
Adopted Budget % increase / (decrease)
Millage Rate (General Fund Only) $7.50 $7.50 No change
① Fiscal Year 2018 actual amount includes a transfer of $3.9 million to the Clubhouse Project
The General Fund is used to account for most of the day-to-day operations of the Village, which are financed from property taxes, fees, licenses, permits, fines & forfeitures, inter-governmental and other revenue.
Total Revenues: $26,123,977 $24,977,802 4.59% $ 1,146,175 $24,642,535 $37,290,233
Expenditures
General Government 3,257,617 3,347,808 -2.69% (90,191) 3,053,627 2,970,245 Public Safety 10,290,842 9,671,875 6.40% 618,967 9,431,609 8,886,615 Public Works 5,540,658 5,283,828 4.86% 256,830 5,065,186 4,406,403 Community Development 1,773,946 1,658,923 6.93% 115,023 1,435,769 1,197,052 Leisure Services 3,058,612 2,817,701 8.55% 240,911 2,613,659 2,591,846 Debt service 1,553,357 1,431,336 8.52% 122,021 1,293,101 0 Contingency / Other 231,795 361,331 -35.85% (129,536) 635,579 1,425,652 Transfers Out 417,150 405,000 3.00% 12,150 4,963,307 14,363,587
Total Expenditures $26,123,977 $24,977,802 4.59% $1,146,175 $28,491,836 35,841,400
Net Revenue Over Expense $ 0 $ 0 $ (3,849,302) $1,448,832
Country Club Budget Summary FY 2020
The Country Club is an Enterprise Fund used to account for operations of the Village’s Golf & Country Club, where the costs of providing goods and services to the general public on a continuing basis are financed or recovered through user charges: no taxes or assessments are used to support the Country Club operations. The Country Club can be divided into three operations: Golf, Food & Beverage and Administration.
Millage Table1.00 MIL $ 2,231,543 .75 MIL $ 1,673,657 .60 MIL $ 1,338,926 .55 MIL $ 1,227,349 .50 MIL $ 1,115,772 .40 MIL $ 892,617 .35 MIL $ 781,040 .30 MIL $ 669,463 .25 MIL $ 557,886 .20 MIL $ 446,309 .10 MIL $ 223,154
Rolled-Back Rate (RBR) $7.1798 mils
Majority Vote Rate $7.4256 mils
A millage rate above $7.4256 will require a 2/3 vote
Country Club Budget Summary
18
Category FY 2020 FY 2019% Increase / (Decrease)
$ Increase / (Decrease)
Personnel $1,006,219 $828,298 21.48% $177,921
Operating 2,543,680 1,618,269 57.19% 925,411
Debt Service 433,689 433,689 0% 0
Total Budget $3,983,588 $2,880,256 38.31% $1,103,332
• Golf– First full year with new GM– New positions include a part-time Administrative Assistant and a
Maintenance Coordinator– First full year with the new maintenance company – Brightview– 25% increase in membership dues
• Remain comparable to similarly situated courses– Outside marketing vendor
• Corporate packages• Partnerships
– Increased focus on merchandising
• Food and Beverage– Farmers Table Lease estimated at $215,000– November opening– $8,333/month ($100,000 annually) for 8 months– 5% of gross revenue over ($2m) with $5m projected
Country Club Priorities and Budget Highlights
19
• Tennis (General Fund)– Rate increase to be on par with similarly situated programs– Tennis Camp – new camp counselor– Review of Tennis Pro compensation structure
• Pool (General Fund)– Review of operating structure
• Option of using North Palm Beach Swim Team– Contract for maintenance services– Enhanced programming/entertainment
Total Expenses $ 3,983,588 $ 2,880,256 38.31% $ 1,103,332
Revenues over (under) expenses $ - $ - $ -
# Rounds 42,500 40,000 -
DRIVING RANGE$360,000 9.04%
MEMBERSHIP$806,354 20.24%
CART RENTAL$841,000 21.11%WALKING FEES
$51,000 1.28%
GREENS FEES$904,000 22.69%
LESSONS$50,000 1.26%
BAG ROOM$12,000 0.30%
MERCHANDISE SALES$300,000 7.53%
FOOD & BEVERAGE$329,500 8.27%
GOLF CLUB & LOCKER RENTAL
$43,000 1.08%
RESIDENT CARD$10,000 0.25%
MISCELLANEOUS$15,500 0.39%
APPROP. RETAINED EARNINGS
$261,234 6.56%
Country Club Revenues
22
Total Revenues $3,983,588
Contractual Services$1,609,000
66.07%
Charge Card Fees$57,500 2.36%
Materials & Supplies$108,850
4.47%
Merchandise$219,000
8.99%
Repairs & Maintenance
$107,500 4.41%
Utilities$247,000 10.14%
Property/Casualty Insurance$46,555 1.91%
Legal Fees$10,000 0.41%
Marketing & Advertising
$30,000 1.23%
Personnel$1,006,219
25.26%
Operating$2,543,680
63.85%
Debt Service
$433,689 10.89%
Country Club Expenses
23
Total Expenses $3,983,588
Operating Costs (by category)
FY 2020 Budget Recap
24
• Current millage is set at 7.50 mils…This rate can’t be increased, but can remain the same or reduced
• The General Fund budget is balanced with $231,795 available in Council Contingency
• The Country Club budget is balanced with utilizing $261,234 in retained earnings (Note: This figure is for
budgeting purposes only)
• The budget provides for:• Capital improvements• Replacement of essential (capital) equipment and vehicles• Employee salary & benefit cost increases• NO reduction of Village services; Village’s high level of service, amenities and quality of life programs
remain fully funded in FY’20
Administration Recommendation• Proceed with the budget (as presented) • Establish a millage rate of 7.50 mils, which is the Village’s current millage rate• Transfer $417,150 to CIP Fund