Minutes 12/03/2018 BUDGET COMMITTEE
PELICAN BAY SERVICES DIVISION
DECEMBER 3,2018
The Budget Committee of the Pelican Bay Services Division met on Monday, December 3 at
9:00 a.m. at the SunTrust Bank Building, located at 801 Laurel Oak Drive, Suite 302, Naples,
Florida 34108. In attendance were:
Budget Committee Ken Dawson
Mike Shepherd, Chairman Nick Fabregas
Joe Chicurel Rick Swider (absent)
Pelican Bay Services Division Staff Mary McCaughtry, Operations Analyst
Neil Dorrill, Administrator Lisa Jacob, Associate Project Manager
Marion Bolick, Operations Manager Barbara Shea, Recording Secretary
Also Present
Susan O'Brien, PBSD Board
APPROVED AGENDA (AS PRESENTED)
1. Pledge of Allegiance
2. Roll call
3. Agenda approval
4. Approval of 08/22/2018 meeting minutes
5. Audience comments
6. EOY 2018 results and related effects on the FY 2019 budget
7. Update on LT capital project planning
8. *Proposed PBSD funding policy change
9. Old Business
10. New Business
11. Adjourn
ROLL CALL
Mr. Swider was absent and a quorum was established
AGENDA APPROVAL
Mr. Dawson motioned, Dr. Chicurel seconded to approve the agenda as
presented. The motion carried unanimously.
APPROVAL OF 08/22/18 MEETING MINUTES
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Budget Committee of the Pelican Bay Services Division
December 3,2018 Minutes
Mr. Dawson motioned, Mr. Fabregas seconded to approve the 08/22/18 meeting
minutes as presented. The motion carried unanimously.
AUDIENCE COMMENTS
None
EOY 2018 RESULTS AND RELATED EFFECTS ON THE FY2019 BUDGET
Mr. Shepherd commented on the end-of-year PBSD FY2018 budget results which show
larger than normal favorable variances. The County is still in the process of posting closing journal
entries for FY2018.
UPDATE ON LT CAPITAL PROJECT PLANNING
Mr. Shepherd provided an exhibit (included in the agenda packet) which lists the five
projects that the committee has agreed are too expensive to manage through our normal funding
mechanism, and will be included in a long-term capital financing project to be funded through an
open line of credit of approximately $25 million. For each project, the exhibit includes (1) the
status of the preliminary cost analysis, (2)the timeframe of the expected analysis completion, and
(3)the estimated costs.
Mr. Dorrill commented that County OMB staff has estimated that an open line of credit of
$20-25 million would incur approximately$100,000 in fees. Mr. Mark Isackson, County Budget
Director, has offered to provide a debt-structuring presentation to the PBSD Board and/or Budget
Committee. Ms. O'Brien suggested that such a presentation include an estimated annual impact
to each resident's annual assessment over the "pay-back"period.
PROPOSED PBSD FUNDING POLICY CHANGE
Mr. Shepherd provided a proposal to modify the PBSD's funding technique. Highlights of
his discussion included the following:
• At the Spring 2018 budget hearings, a number of commercial members requested that the
PBSD Board revisit the formula for assigning ERU's to commercial properties, as many
of these receive few benefits from the PBSD. Current policy is for commercial properties
to be assigned 1.0 ERU per unimproved acre or 5.75 ERU's per improved acre.
• The proposed funding modification plan changes the assigned ERU's per unimproved acre
from 1.0 ERU to 1.75 ERU and the assigned ERU's per improved acre from 5.75 ERU's
to 5.5 ERU's.
• The proposed plan raises the millage rate for our ad valorem stream to a level which is
suitable for funding our"accrual"needs (i.e. street lighting, lake bank remediation,beach
renourishment, etc.)and simultaneously reduces the non-ad valorem assessment to a level •
required to fund our ongoing operational needs (including any loan amortization). These
changes result in a less regressive form of tax on PB residents and reduces the assessments
for most PB commercial members.
• The plan administratively corrects the categorization of two improved properties (The
Club and the County parcel on which the PBSD maintenance building sits) which have
benefited from inaccurately being categorized as unimproved properties.
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Budget Committee of the Pelican Bay Services Division
December 3,2018 Minutes
• A revenue-neutral plan using the FY18 budget as an example, would have resulted in a
reduction of the non-ad valorem assessment from $652.86/ERU to $525.41/ERU, with a
corresponding increase of the ad valorem millage rate from .0857 to .2168.
• A final PBSD Board approved funding modification plan would need to be approved by
the Collier County Board of Commissioners.
• Staff will review the PBSD ordinance to determine whether any ordinance amendment is
required in order to implement the proposed funding modification plan.
Mr.Dawson motioned,Mr.Fabregas seconded to submit the plan(Mr. Shepherd's
new PBSD funding modification plan) to the PBSD Board for approval. The
motion carried unanimously.
The committee agreed that Mr. Shepherd would provide informational materials related to
the proposed PBSD funding modification plan to Ms. Shea,to provide to all PBSD Board members
for review.
Ms. O'Brien commented on the significant financial impact this policy change would have
on high-value properties and suggested that the PBSD Board provide opportunities for resident
feedback on the proposed policy change.
ADJOURNMENT
The meeting was adjourned at 9:50 a.m. I
_ 02b 4,.my
Scott Streckenbein (ex-officio)
Minutes approved [ �as presented OR F 1 as amended ON [ 1714- /9 1 date
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