Budget Committee Minutes 04/07/2021BUDGET COMMITTEE
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APRIL 7, 2021
The Budget Committee of the Pelican Bay Services Division met on Wednesday,
April 7 at 1:00 p.m. at the Club Pelican Bay, 707 Gulf Park Drive, Naples, Florida.
In attendance were:
Budget Committee
Michael Fogg, Chairman
Joe Chicurel
Nick Fabregas
Denise McLaughlin
Pelican Bay Services Division Staff Karin Herrmann, Operations Analyst
Neil Dorrill, Administrator Lisa Jacob, Project Manager
Chad Coleman, Operations Manager Barbara Shea, Administrative Assistant
Darren Duprey, Assoc. Project Mgr. (absent)
Also Present
Jack Cullen, PBSD Board
Mark English, PBPOA
Susan O'Brien, PBSD Board
APPROVED AGENDA (AS PRESENTED)
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
ROLL CALL
All members were present and a quorum was established.
AGENDA APPROVAL
1
Pelican Bay Services Division Budget Committee Meeting
April 7, 2021
Ms. McLaughlin motioned, Mr. Fabregas seconded to approve the agenda as
resented. The motion carried unanimously.
APPROVAL OF 1/22/2021 MEETING MINUTES
Mr. Fogg motioned, Ms. McLaughlin seconded to approve the 1/22/2021 meeting
minutes as presented. The motion carried unanimously.
AUDIENCE COMMENTS
Ms. O'Brien commented on (1) the reduction of scaevola removal from $110,000 to
$75,000 in the most recent revision to the proposed FY2022 budget, (2) the proposed FY2022
assessment for Fund 320 is $57.50/ERU, or an increase of 43% over the FY2021 budget, (3) the
$150,000 annual Clam Bay contribution from the County could be shown as revenue to Fund 320,
which would reduce the Fund 320 assessment to $36/ERU, (4) FY2022 budgeted expenses in Fund
109 exceed budgeted revenue by $950,000 (similar to FY2021), (5) our projected annual
assessment is on track to increase approximately 73% over the next ten years, and (6) in the recent
past, PB residents have expressed a desire for the PBSD to develop a long-term capital plan, funded
by long-term financing.
FY 2021 FORECAST VS. BUDGET
Mr. Fogg provided and discussed staff's best estimates of FY2021 forecast vs, budget for
Fund 109 for personal services, operating expenses and capital outlay.
FY 2021/2022 BUDGET
Mr. Fogg commented that our preliminary budget submission is due in the County Budget
Office on May 6. Board of County Commissioners Budget workshops will be held in June. He
noted that we are targeting a maximum assessment for FY2022 of $800/ERU which would be a
5.2% increase from FY2021. The County is expecting a 2% increase in overall ad valorem taxes.
The combination of these two, would result in an increase of approximately 4.9% to PB residents.
FUND 109
Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 109 line -item budget.
Mr. Fogg suggested that our budgeted operating expenses need to be reduced by $300,000 and our
personal services may be reduced by up to $100,000. He noted that we tend to overestimate
budgeted expenses, which results in a carryover each year.
FUND 778
Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 7781ine-item budget.
Mr. Fogg noted the budget for the replacement of our bucket truck (for streetlights) is approx.
$156,000. Mr. Fogg suggested, and the committee agreed, to transfer the surplus of $446,700 in
this account to Fund 322 to help fund our capital projects.
Mr. Fogg suggested that we hire a consultant to determine the remaining life expectancy
of our streetlight poles. Ms. O'Brien commented that an evaluation of our streetlight poles was
completed in 2016. Mr. Dorrill recommended that we obtain an updated evaluation on the life
expectancy of our streetlight poles, which could be obtained at a minimal cost.
Pelican Bay Services Division Budget Committee Meeting
April 7, 2021
FUND 320
Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 320 line -item budget.
Mr. Fogg commented on approximately $189,000 of existing open purchase orders in FY2021
Fund 320. He suggested that staff provides the committee with a description/purpose/timeframe
for each of these purchase orders.
Mr. Fogg commented that the PBSD receives $150,000 annually from the County for
expenses related to Clam Bay, which is recorded and spent out of a designated cost center in Fund
111. Mr. Dorrill commented that it would be helpful if these funds could be transferred into our
Clam Bay Fund 320, and he will follow up on this issue with the County Budget Office.
Mr. Coleman commented that the total estimated cost of our scaevola removal project is
$180,000 (for scaevola removal, plant replacement, and maintenance); $75,000 of this project has
been included in the Fund 320 FY2022 budget. Mr. Dorrill suggested that we request an additional
$75,000 from the County, for a total annual contribution of $225,000 (into Fund 111). He will
follow up with the County Budget Office,
FUND 322
Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 322 line -item budget.
For each project, Mr. Fogg reviewed the current estimated balance, the 09/2021 estimated balance,
and the FY2022 estimated spending. Highlights of this discussion included the following:
• The costs of building materials over the past year have dramatically increased. If bids
received for our Operations Building replacement project are much higher than expected,
then we may delay the start of construction to a future time when hopefully costs have
declined.
• The current budget of $2 million for beach renourishment may not all be necessary. Mr.
Coleman commented that beach renourishment must be financed through assessments, not
through financing.
• The County's estimate of $250,000 debt service may be a higher than needed estimate.
• The committee agreed that funds in projects with no FY2022 estimated spending, including
Landscape Improvement, Lake Aeration, Hurricane Irma, and PBSD Asset Management,
should be transferred into other active projects. Mr. Dorrill agreed.
• Approximately $450,000 will be transferred from Fund 778 to Fund 322 in FY2022.
• Mr. Fogg estimates financing of $3 - $4 million will be required in FY2022.
FINANCIAL STATEMENTS
Mr. Fogg commented that our final payment of approximately $251,000 for our sign
project in FY2021 does not appear on our monthly financial statements. Mr. Coleman will follow
up with Clerk's Finance and obtain updated March financial statements.
CAPITAL PROJECTS/FINANCING AND ASSESSMENTS
A capital management plan schedule of estimated fund requirements for our projects,
required financing, and debt service over the next ten years was provided in the agenda packet. In
preparation of the schedule, Mr. Fogg assumed that all of our financing would be for a period of
ten years. Ms. McLaughlin commented that to her recollection, OMB Director Mark Isackson
indicated that our financing would be paid back over seven years. Staff will follow up with the
Budget Dept. to determine whether the length of our debt payback will be over seven or ten yeas.
Pelican Bay Services Division Budget Committee Meeting
April 7, 2021
Mr. Mark English, PB Property Owners Assoc., commented on financing long-term capital
projects with long-term financing, and recommended competitively bidding out long-term bonds
in the open market for our financing needs. Mr. Dorrill commented on the high cost of issuance
(approximately $500,000) if the PBSD were to pursue this idea. Mr. Coleman noted that the
County OMB Director has recommended our obtaining financing through the Florida Local
Government Finance Commission. Mr. Dorrill suggested that Mr. English attends the public June
Board of County Commissioners Budget Workshop to voice his opinion. Mr. Dorrill also
commented that he would provide additional information on the FL Local Government Finance
Commission financing to Mr. English.
The meetine was adiourned at 3:05
Minutes approved
as presented OR L J as amended ON OS O aZ0 at Idate