PBSD BC Agenda 04/07/2021PELICAN BAY SERVICES DIVISION
Municipal Services Taxing and Benefit Unit
NOTICE OF PUBLIC MEETING WEDNESDAY, APRIL 7, 2021
THE BUDGET COMMITTEE OF THE PELICAN BAY SERVICES DIVISION
WILL MEET ON WEDNESDAY, APRIL 7 AT 1:00 PM AT THE CLUB
PELICAN BAY, 707 GULF PARK DRIVE, NAPLES, FLORIDA,
AGENDA
1. Pledge of Allegiance
2. Roll call
3. Agenda approval
4. Approval of 01/22/2021 meeting minutes
5. Audience Comments
6. FY 2021 Forecast vs. Budget
7. FY 2021/2022 Budget
a. Fund 109
b. Fund 778
c. Fund 320
d. Fund 322
8. Capital Projects/Financing and Assessments
9, Other Committee Comments
10. Adjourn
ANY PERSON WISHING TO SPEAK ON AN AGENDA ITEM WILL RECEIVE UP TO THREE (3) MINUTES
PER ITEM TO ADDRESS THE BOARD. THE BOARD WILL SOLICIT PUBLIC COMMENTS ON
SUBJECTS NOT ON THIS AGENDA AND ANY PERSON WISHING TO SPEAK WILL RECEIVE UP TO
THREE (3) MINUTES. THE BOARD ENCOURAGES YOU TO SUBMIT YOUR COMMENTS IN WRITING
IN ADVANCE OF THE MEETING. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS
BOARD WILL NEED A RECORD OF THE PROCEEDING PERTAINING THERETO, AND THEREFORE
MAY NEED TO ENSURE THAT A VERBATIM RECORD IS MADE, WHICH INCLUDES THE TESTIMONY
AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. IF YOU ARE A PERSON WITH A
DISABILITY WHO NEEDS AN ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS MEETING
YOU ARE ENTITLED TO THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE
PELICAN BAY SERVICES DIVISION AT (239) 597-1749.
BUDGET COMMITTEE
PELICAN BAY SERVICES DIVISION
JANUARY 22, 2021
The Budget Committee of the Pelican Bay Services Division met on Friday, January 22 at 9:00
a.m. at the Community Center at Pelican Bay, 8960 Hammock Oak Drive, Naples, Florida. In
attendance were:
Budget Committee
Michael Fogg, Chairman
Joe Chicurel
Pelican Bay Services Division Staff
Neil Dor ill, Administrator
Chad Coleman, Operations Manager
Darren Duprey, Assoc. Project Mgr,
Also Present
Susan O'Brien, PBSD Board
Nicic Fabregas
Denise McLaughlin
Scott Streckenbein
Karin Herrmann, Operations Analyst
Lisa Jacob, Project Manager
Barbara Shea, Administrative Assistant
APPROVED AGENDA (AS PRESENTED)
1. Pledge of Allegiance
2. Roll call
3. Agenda approval
4. Approval of 10/12/2020 meeting minutes
5. Audience Comments
6. 1st quarter 2021 financial statements review
7. Full year forecast — under and overs
8. Early look at FY2021/2022 budget
a. Operations
i. Carryforward
ii. Reductions and increases from FY2021
b. Capital
i. Major projects, amount and timing
ii. Impact of financing
9. Discussion of Assessment Strategy
a. Long-term
b. FY 2022
10. Assessment Methodology
a. Ad valorem vs. ERU
b. ERU distribution
11. Other Committee Comments
Pelican Bay Services Division Budget Committee Meeting
January 22, 2021
12. Adjourn
ROLL CALL
All members were present and a quorum was established.
Mr. Streckenbein motioned, Ms. McLaughlin seconded to approve the agenda as
presented. The motion carried unanimously.
Mr. Streckenbein motioned, Ms. McLaughlin seconded to approve the 10/12/2020
meetinIz minutes as presented. The motion carried unanimously.
AUDIENCE COMMENTS
Ms. O'Brien thanked Mr. Fogg for including in the packet, his explorations of how to take
the Fund 109 in FY2022 and align the expenses with revenues without using caryforward funds.
She also suggested that we explore hiring private contractors to complete some of our specific
landscaping projects, such as the maintenance of the US 41 berm. She suggested that this could
be a way of controlling costs going forward, in light of the fact that our maintenance workers are
paid eight hours of overtime each week, and receive rather costly benefit packages.
Ms. McLaughlin commented that Mr. Coleman has recently commented that at an hourly
wage of $12.25/hr. for entry level landscape maintenance workers, it has been difficult to recruit
workers at this wage level. Mr. Coleman commented that we have 11 temporary labor workers
(who are not entitled to benefit packages) out of a workforce of approximately 30. He considers
our current workforce to be fairly stable.
Mr. Streckenbein commented that the PBSD Board studied this issue in 2019, and
determined that the PBSD model was less costly than the model used by similar communities.
Mr. Fabregas commented that in Florida, the minimum wage will be increasing in annual
increments to $15.00/hr. by 2026. He also noted that during the past six months, the Waterside
Shops went through the exercise of obtaining bids for lawn maintenance and tree trimming, and
received bids back which included labor costs of $45/hr•. to $75/hr. per worker.
Mr. Donill commented that insurance rates for contractors are very high. He also noted
that the County has not had much success with landscape contractors, as exemplified by the
maintenance of the US 41 median. Mr. Dorrill commented that he believes the Pelican Bay
community receives a much better landscape product using our own employees.
Mr. Fogg concluded that there is not enough committee support to pursue Ms. O'Brien's
suggestion. Ms. McLaughlin commented that the appearance of our landscaping is excellent.
1ST QUARTER 2021 FINANCIAL STATEMENTS REVIEW
Mr. Donill commented on the December 2020 financial statements including (1) our robust
cash position at 12/31/2020, (2) our receipts of 84% of budgeted revenue, and (3) our expending
of 21 % of our operating budget in the first quarter. Mr. Fogg provided a brief review and highlights
of our 12/31/2020 balance sheet and three-month income statements of our four funds.
2
Pelican Bay Services Division Budget Committee Meeting
January 22, 2021
FULL YEAR FORECAST — UNDER AND OVERS
Mr. Coleman reported that he expects that we will be a little under our total operating
budget for the year, resulting in the 10/01 /2021 carryforward being slightly less than the prior year.
EARLY LOOK AT FY2021/2022 BUDGET —OPERATIONS
Mr. Fogg provided a schedule of 10/01/2020 forecasted carryforward amounts versus
actual carryforward amounts for our four funds, which was included in the agenda packet. The
additional actual carryforward amount of $424,000 in Fund 109 will be available to us in FY2022.
Mr. Fogg questioned whether our cash flow reserve could be reduced. Mr. Coleman
responded that there is a prescribed percentage to calculate this reserve, as mandated by the County
Budget Office. Mr. Coleman will explore the possibility of reducing this reserve with the Budget
Office,
EARLY LOOK AT FY2021/2022 BUDGET -CAPITAL
Mr. Fogg reviewed the current balances in our projects in Fund 322, and discussed whether
we should increase or decrease each project balance in FY2022. After discussion with committee
members, consensus on proposed increases/decreases to projects included:
• The balance of $621,000 in our Hurricane Irma project can all be transferred out and used
for other projects; there are no more outstanding Hurricane Irma invoices.
• No additional FY2022 Landscape Improvement project funds are needed; $300,000 of the
existing balance of $528,000 could be repurposed.
• The FY2022 budget should include adding $250,000 to our Beach Renourishment project.
• The Lake Bank Restoration project has a balance of $1,133,000; additional funding will be
obtained through our long-term financing mechanism.
• The Signage project has a balance of $96,000 which will be used for this year's replacement
of 30 signs; additional funds will be required for next year's project. Mr. Coleman
commented that just under half of our signs have been replaced, leaving approximately 250
signs left to replace.
• No additional funds are needed for our Lake Aeration project.
• Our drainage pipe maintenance repairs are paid from our operating budget (FY2021 =
$200,000). So far, Mr. Duprey has received an assessment on about 20% of our drainage
pipes, showing that these pipes are in relatively good shape. He does not anticipate the
need to increase the amount in this line item above $200,000 in FY2022.
• There has been no PBSD Board decision on whether to go forward with the license plate
reader project, with a projected cost of $286,000. There have been no comments from the
PBF on whether they would provide cost -sharing for this project.
llISCUSSION OF ASSESSMENT STRATEGY
The committee had a discussion on haw to finance future lake bank restoration projects.
Ms. McLaughlin estimated that a maximum of $2 million could be spent on these projects each
year. Mr. Fogg commented on our two options, (1) use our long-term financing mechanism,
resulting in an increase in our annual assessment of about 2%, or (2) increase our assessment for
3-4 years (without using any long-term financing), resulting in an annual assessment increase of 6
or 7%. Mr. Fabregas reminded the committee of a number of PB residents who have voiced their
preferences for the long-term financing option at several of our meetings. After committee
3
Pelican Bay Services Division Budget Committee Meeting
January 22, 2021
discussion, Mr. Fogg concluded that we will draw down financing for lake bank restoration
projects as needed.
ASSESSMENT METHODOLOGY
AD VALOREM VS. ERU
Mr. Fogg commented that the PBSD Board studied the "ad valorem vs. ERU" methodology
in 2019. By consensus, the committee agreed that they had no interest in studying or changing the
methodology at this time.
F,RU DISTRIBUTION
Mr. Fogg provided a brief overview of the ERU distribution included in the assessment
methodology, and discussed a few existing anomalies. By consensus, the committee agreed that
they had no interest in studying or changing the ERU distribution contained in the existing
assessment methodology.
Mr. Fogg commented that he would bring forward the committee's consensus on the
assessment methodology issue to the full board.
The meeting was adjourned at 10:32 a.m.
Michael Fogg, Chair�rnan
Minutes approved �] as presented OR �� as amended ON � _ ]date
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Agenda item #8
Page 1 of 3
PBSD 10 Year Projected Budget/Assessments
Operations - not expected to change activities materially - inflation
I
ncreases (2.5%)
Capital spending to increase significantly in next two years (construction
period):
Operations Building $3.3 m
Sidewalks 6.0 m
Lake Banks 4.0 m
Beach renourishment 2.0 m
$6.0 m to be financed.
Once construction period complete plan is to obtain long term (10+ years)
financing - County providing $500K pa. for 8 years towards debt service
Known large additional ongoing capital requirements in 3-10 year window
for lake bank restoration, periodic beach renourishment, and street signs.
Long lived asset expenditures to be financed with additional long term
borrowing, as incurred.
Beach renourishment assumed to occur every 4 years to be financed
through a reserve built from annual capital assessment at $500m per
annum. $320m of a/c 778 annual surplus to be used towards beach
renourishment reserve.
Street light replacement assumed to be needed in year 10 and as long
lived asset to be financed by long term borrowing or leasing (if needed).
Assessments to be raised at steady rate over 10 years fio cover capital
expenditures and debt service -objective is to smooth burden on
residents and correlate increased assessments with the residents who will
receive the benefits from useful life of long-lived assets
Assessment increase needs to be on ERU and Ad Valorem elements of
assessment .Projection assumes overall 5% p.a. increase in assessment
(ERU and Ad Valorem) - Operations 2.5% and Capital 2.5%.
Agenda item #8
Page 2 of 3
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Agenda item #8
Page 3 of 3
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