Minutes 07/12/2019 BUDGET COMMITTEE
PELICAN BAY SERVICES DIVISION
JULY 12,2019
The Budget Committee of the Pelican Bay Services Division met on Friday, July 12 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 (absent)
Rick Swider, Chairman Nick Fabregas
Joe Chicurel (absent) Scott Streckenbein (ex-officio)
Pelican Bay Services Division Staff Mary McCaughtry, Operations Analyst
Neil Dorrill, Administrator (by telephone) Alex Mumm, Interim Sr. Field Supervisor
Lisa Jacob, Interim Operations Manager Barbara Shea, Recording Secretary
Also Present Denise McLaughlin, PBSD Board
Michael Fogg, PBSD Board Susan O'Brien, PBSD Board
Derek Johnssen, Clerk of Courts Michael Weir, PBSD Board
Kelly Jones, Clerk of Courts
APPROVED AGENDA (AS PRESENTED)
1. Pledge of Allegiance
2. Roll call
3. Agenda approval
4. Approval of 5/01/2019 meeting minutes
5. Alternative financial reporting (presentation by D. Johnssen and K. Jones)
6. Theoretical discussion of PBSD funding stream: Status quo or change?
a. Ad valorem (street lighting)vs. non-ad valorem (all other PBSD funding)
b. Existing ERU methodology
i. One ERU per residence
ii. 5.75 ERU per improved commercial acre
iii. 1.00 ERU per unimproved commercial acre
c. Four parcels designated unimproved=preferential treatment
i. Golf course—220 acres
ii. The Club's golf course maintenance center— 1.43 acres
iii. County Park— 14.88 acres
iv. County Public Utilities/PBSD Watergate Way parcel— 12 acres
7. Old Business
8. New Business
9. Audience Comments
10. Adjourn
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Budget Committee of the Pelican Bay Services Division
July 12,2019 Minutes
ROLL CALL
Dr. Chicurel and Mr. Dawson were absent and a quorum was established
MR. DORRILL PARTICIPATED BY TELEPHONE
AGENDA APPROVAL
Mr. Swider motioned, Mr. Fabregas seconded to approve the agenda as
presented. The motion carried unanimously.
APPROVAL OF 05/01/2019 MEETING MINUTES
Mr. Streckenbein motioned, Mr. Fabregas seconded to approve the 05/01/2019
meeting minutes as presented. The motion carried unanimously.
MR. SWIDER INTRODUCED MR. JOHNSSEN AND MS. JONES, FINANCE DEPT. OF
THE CLERK'S OFFICE
ALTERNATIVE FINANCIAL REPORTING
Mr. Derek Johnssen, Finance Director of the Clerk of Courts, and Ms. Kelly Jones,
Assistant Finance Director commented that they have reviewed PBSD monthly financial reports
as they are currently prepared by Ms. McCaughtry. Mr. Swider and Mr. Fabregas commented on
the difficulty in understanding these reports in their current form.
Mr. Johnssen recommended that the PBSD consider budget-to-actual reports (SAP 210
reports). Ms. Jones commented on financial reporting options available to us, including:
• Monthly financial activity totals vs. year-to-date totals with no monthly data.
• Financial information by fund vs. financial information by cost center.
• Financial information on every expense line item vs. a"roll-up"of total operating expenses
for each fund/cost center.
• Year-to-date financial information on each of our projects vs. monthly data.
After discussion, the committee agreed that they would like to see a sample of financial
reports which would include, (1)budget-to-actual financial data by cost center, including monthly
information, and a "roll-up" of operating expenses, and (2) year-to-date financial data (without
monthly data) on our projects. Ms. Jones commented that she will provide samples of financial
reporting under these criteria to Ms. McCaughtry within a few weeks.
Mr. Dorrill commented on the meaningfulness of the discussion. He noted that some board
members are interested in seeing a balance sheet and cash position on a monthly basis. Mr.
Johnssen responded that a snapshot balance sheet could be provided each month. He also noted
that any PBSD monthly financial reporting is on a "cash basis," not on an "accrual basis." Mr.
Johnssen commented that he is looking into separately identifying the PBSD in the County's
consolidated CAFR (Comprehensive Annual Financial Report) in future reports.
Mr. Johnssen commented that once PBSD long-term financing is in place, that his
department will manage all financial aspects of the debt.
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Budget Committee of the Pelican Bay Services Division
July 12, 2019 Minutes
THE COMMITTEE RECESSED AT 10:10 AM AND RECONVENED AT 10:16 AM
THEORETICAL DISCUSSION OF PBSD FUNDING STREAM
The committee discussed the existing PBSD assessment methodology and reviewed the
assigned ERU's of commercial members. Mr. Fabregas commented that we do not have
comparative assessment methodology information (including golf course assessments) on similar
communities to Pelican Bay. The committee discussed the advantages/disadvantages of a
migration to an ad-valorem tax assessment method as well as changing how ERU's are assigned
to commercial members.
Mr. Fabregas volunteered to research the history and documentation of our existing
assessment methodology and assignment of ERU's to commercial properties. The committee
agreed to discuss his research at the next committee meeting. After discussion of alternative
methodologies,the committee agreed that for this year,their focus would be on securing long-term
financing to fund our large long-term project needs, and not on modifying the existing assessment
methodology. Mr. Swider suggested the need for five-year planning/budget forecasting in relation
to our future long-term financing.
Ms.Jacob commented that an all-inclusive list of long-term projects with associated costs
has not been completed. This list is a preliminary requirement in the acquisition of long-term
financing process. Mr. Fogg suggested that our inadequate staff level has limited staffs progress
in completing this list.
OLD BUSINESS
None
NEW BUSINESS
Mr. Swider's goal is to schedule the next Budget Committee meeting for mid-August, and
will include a review of (1) samples of a proposed new method of PBSD financial reporting
prepared by Ms. Jones, and (2) documentation of the history of our existing assessment
methodology as researched by Mr. Fabregas.
AUDIENCE COMMENTS
None
ADJOURNMENT
The meeting was adjourned at 11:10 a.m. I
5 EE GE.L °
Rick Swider, Chairman
Minutes approved [ I/ as presented OR [ ] as amended ON [ 11/4‘111111 , di •
W.11 ar,19
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