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PBSD BC Agenda 10/11/2021PELICAN BAY SERVICES DIVISION Municipal Services Taxing and Benefit Unit NOTICE OF PUBLIC MEETING MONDAY, OCT. 11, 2021 THE BUDGET COMMITTEE OF THE PELICAN BAY SERVICES DIVISION WILL MEET ON MONDAY, OCTOBER 11 AT 1:00 PM AT THE PELICAN BAY SERVICES DIVISION, 1ST FLOOR OF THE SUNTRUST BUILDING, SUITE 102, LOCATED AT 801 LAUREL OAK DRIVE, NAPLES, FLORIDA. 1. Pledge of Allegiance 2. Roll call 3. Agenda approval 4. Approval of 05/04/2021 meeting minutes 5. Audience Comments 6. FY 2021 Financial Review a. Fund 109 b. Fund 778 c. Fund 320 d. Fund 322 7. Capital Projects/Financing 8. Review FY 2022 Budget Development Process 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) 252-1355. BUDGET COMMITTEE PELICAN BAY SERVICES DIVISION MAY 4, 2021 The Budget Committee of the Pelican Bay Services Division met on Tuesday, May 4 at 1:00 p.m. at the Club Pelican Bay, 707 Gulf Park Drive, Naples, Florida. In attendance were: Budget Committee Dave Mangan Michael Fogg, Chairman Denise McLaughlin Nick Fabregas (absent) Susan O'Brien Pelican Bay Services Division Staff Karin Herrmann, Operations Analyst Neil Dorrill, Administrator Lisa Jacob, Project Manager Chad Coleman, Operations Manager Barbara Shea, Administrative Assistant Dairen Duprey, Assoc. Project Mgr. (absent) Also Present Hank Rossi, PBPOA APPROVED AGENDA (AS AMENDED) 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Approval of 04/07/2021 Meeting Minutes 5. Audience Comments 6. FY 2021/2022 Budget a. Fund 109 b. Fund 320 c. Fund 322 d. Fund 778 7. 10 Year Capital Projects/Financing and Assessments 8. Other Committee Comments a. Limit on Expenditures and Transfers (Add -on) 9. Adjourn ROLL CALL Mr. Fabregas was absent and a quormn was established. AGENDA APPROVAL 1 Pelican Bay Services Division Budget Committee Meeting May 4, 2021 Ms. McLaughlin motioned, Ms. O'Brien seconded to approve the agenda as amended with the addition of item #8a. The motion carried unanimously. APPROVAL OF 4/07/2021 MEETING MINUTES Ms. McLaughlin motioned, Ms. O'Brien seconded to approve the 4/07/2021 meeting minutes as presented. The motion carried unanimously. AUDIENCE COMMENTS Mr. Hank Rossi, Vice President of the PBPOA, commented on (1) Pelican Bay homeowners want to see a PBSD long-range plan, (2) a majority of PB homeowners favor 30-year financing for capital projects, and (3) the need for improved communication between the PBPOA and the PBSD. FY 2021/2022 BUDGET Mr. Fogg commented that our preliminary budget submission to the County Budget Office provides for a FY2021 /2022 annual assessment of $796. Staff continues to tweak line items. FUND 109 Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 109 line -item budget. The "Fund 109 detail proforma summary grouped by commitment item" report was included in the agenda packet, which includes the FY2021 amended budget, the FY2021 forecast, and the FY2022 budget for each line item. Mr. Coleman reported that he has reduced the FY2022 budget for operating expenses to $2,221,000 from $2,360,500. Mr. Fogg suggested and the committee agreed that this savings of $140,000 should be added to this fund's capital outlay reserve. Mr. Fogg suggested that staff "rounds off' the reserve amounts as follows: $125,000 for contingencies, $700,000 for disaster relief, and $475,000 for cash reserve. Ms. O'Brien suggested that staff provides actuals for each Fund 109 line item for the past five years to improve our future budgeting process. She also suggested that it would be helpful if staff could provide detail on the line item committed funds (open purchase orders). Ms. O'Brien suggested that the committee needs a discussion, in the future, on the types of vehicles which are most appropriate for PBSD needs. She also provided a document entitled "PBSD field workers" which includes data on the increase in PBSD staff (both County workers and temporary labor) from FY2012 to FY2021, which was added to the record. FUND 320 Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 3201ine-item budget; the "Fund 320 detail proforma summary" report was included in the agenda packet. Ms. O'Brien requested an explanation of the FY2021 forecast of $375,000 of expenditures. Mr. Coleman explained that YTD expenditures are approximately $118,000 and current open purchase orders are approximately $155,000. After discussion, the committee agreed to reduce the line item for tree trimming by $50,000, and to add $50,000 to capital projects in Fund 322. Mr. Dorr•ill commented that at the upcoming County Executive Office budget review, he will pursue the possibility of obtaining an increase in the funds received from the County for Clam Bay expenditures in Fund 111 to help pay for the scaevola removal project in Clam Bay. Pelican Bay Services Division Budget Committee Meeting May 4, 2021 FUND 322 lvh•. Fogg and the committee reviewed the preliminary FY2022 Fund 322 line -item budget; the "Fund 322 detail proforma summary" report was included in the agenda packet. Mr. Fogg noted that only our Phase 2 Sidewalk project and our Operations Building project require financing. Ms. O'Brien suggested that we may get a better price per sign if we were to complete the replacement of the rest of our signs (to comply with our new specifications) in one larger project. She noted that the price per sign for our current small batch project is much higher than the price two years ago. Mr. Coleman commented that the quality can be better controlled for a smaller batch of signs. Mr. Fogg commented that debt service of $275,000 may be adjusted, based on the amount and timing of financing obtained during the year. FUND 778 Mr. Fogg and the committee reviewed the preliminary FY2022 Fund 778 line4tem budget; the "Fund 778 detail proforma summary" report was included in the agenda packet. Mr. Fogg noted that $2 million was transferred out of Fund 778 to Fund 322 this year, to fund our Operations Building project, and we will continue to make similar transfers to Fund 322 in the future. Ms. O'Brien requested that staff provides the committee with an estimated remaining life of our streetlight poles, within a year's time. Mr. Fogg suggested that staff obtain a quote to pressure wash all of our streetlight poles. 10 YEAR CAPITAL PROJECTS/FINANCING AND ASSESSMENTS A capital management plan/schedule of estimated funding requirements for our projects and operations, assessment and ad valorem revenue, and debt service over the next ten years was provided in the agenda packet. Mr. Fogg expressed his preference to obtain financing for our capital projects via the issuance of a 20-year bond, obtained through the County. Mr. Dorrill commented on the relatively high cost of bond issuance fees. In the agenda packet, Mr. Fogg provided information on financing options discussed with County personnel on 04/23/2021 including (1) medium term assessment increase, (2) short-term commercial paper, (3) fixed bank loan, and (4) public debt offering. Mr. Fogg will pursue a 20-year bond issue for $6 — 7 million with the County. Ms. McLaughlin commented that this is "not typically done" for such a small amount of principal. Mr. Fogg noted that short-term financing may be needed to supplement funds from a 20-year bond issue. Ms. McLaughlin and Ms. O'Brien were not comfortable with Mr. Fogg's estimate of $2 million for lake bank restoration for every year in the ten-year projection. They noted that lake restoration projects differ in requirements, methodology, and cost. Ms. O'Brien suggested that $6 million from bond proceeds is not needed in FY2022. She provided a document entitled "PBSD Funds" which summarizes total funds of $9,314,763 potentially available for capital projects in FY 2022, which was added to the record. She suggested that there is a disconnect between the Cleric's fund balances and fund balances provided in our budget documents. Ms. McLaughlin noted that in order to bid out a capital project, funds in hand are required for the entire project. Mr. Dorrill agreed that we must have all of the cash in hand for a capital project, in order to cut the purchase order for the project. Ms. O'Brien suggested that we add the financing required to complete our lake bank restoration projects into the bond principal, 3 Pelican Bay Services Division Budget Committee Meeting May 4, 2021 and reduce the amount of the current assessment, in order to match the term of the financing with the life expectancy of the lake banks. OTHER COMMITTEE COMMENTS —LIMIT ON EXPENDITURES AND TRANSFERS Ms. O'Brien provided a copy of an Executive Summary which is a recommendation to recognize and appropriate revenue to the PBSD Capital Fund in the amount of $529,212.05 for FY2021 and authorize all necessary budget amendments, submitted to the BCC on 4/13/2021. This document was added to the record. Ms. O'Brien commented that the PBSD Board was not aware of this Executive Summary prior to its going to the BCC for approval. She suggested that the PBSD Board should have approved this Executive Summary, based on a staff recommendation, prior to its being placed on the BCC agenda for approval. ADDITIONAL FINAL COMMENTS ON THE FY2022 BUDGET Mr. Coleman commented that the PBSD's FY2022 budget document will be available for review by the board no later than next week. He noted that the County Budget Workshops are being held on June 24 and 25. Mr. Dorrill noted that our preliminary budget has already been submitted to the County's Budget Office. Mr. Coleman also noted that our request for short-term financing through the County, will be on a June BCC agenda. The meetine was adjourned at 3:07 Michael Fogg, Chairman Minutes approved L� as presented OR L� as amended ON [ � date Agenda item #6a Page 1 of 1 Fond 109 Adopted Budget Amended Budget Forecast Actual FC less Actual % act FC FY22 Ruder %Change 182602 WATER MGMT FLD O 1,287,300.0011294,600,001,224,700.0011045,010.43 179,689.57 85.3 1,13B,900 -11,50% PERSONAL SERVICE 352,900.00 356,9oa.90 363,300.00 338,279,38 25,020,62 93.1 369,900 4.80% OPERATING EXPENSE 932,800.00 936,3aa.6a 861,400.00 740o731,05 120,668.95 86.0 632,400 -22,10% CAPITAL OUTLAY 11400,00 11400,00 100 500 -64,30% 182901 ROW BEAUTFIELD 3,431,500.00 3,431,000.00 3,136,500.00 3,025,15fl.60 111,341,32 96.5 3,387,600 -1.30% PERSONAL SERVICE 1,654,300.00 1,644,300.00 1,608,500.00 lo556,102,851 52,397.15 96.7 11679,100 1.50% OPERATING EXPENSE 1,617,800,001,627,300.00 1,384,400,001,381,697.64 2,702,36 99.8 11,5313500 -5.30% CAPITAL OUTLAY 1590400.00 159j400.00 143,600.00 155,858.38 12,258.38- 108.5 177,000 11% Eat ry Forward 291,030,89 Trans to Property Appraiser 84,500 84,500 84,500 85,000 0.6% Trans to Tax Collector 73,03E 126,800 126,800 130,700 3.1% Trans to 301 Co Wide Cap Fd Trans to 408 Water Sewer Fd 23,100 123,100 1230100 21,000 -9.1% Reserve for Contingencies 15%000 2fl.1% Reserve for Capital 111,200 -62.9% Reserve for Disaster Relief 700,000 2.8^/0 Reserve for Cash Flow 4483�600V Reserve for Attrition -43,900 38.9% Agenda item #6b&c Page 1 of 1 Fund 778 Adapted Budget Amende d Budget Forecast Actua 1 FC less Actual % Act/FC FY22 Budet % Change REVENUE Sub Total 656,400.00- 656,400.00- 630,100,00- 632,303.26- 2,203.26 100.3 182701 STREET LIGHT FIE 397,000.00 399,000.00 274,800.00 234,764.29 40,035.7 85.4 PERSONAL SERVICE 103,600.00 103,600.00 103,900.00 82,898.51 21,001.49 79,8 10%500 1.8% OPERATING EXPENSE 292,000.00 294,000.00 170,900,00 151,865.78 19,03422 88,9 184,800 -34.5% CAPITAL OUTLAY 1,400.00 1,400.00 156,500 11078.6% Carry Foward 40,035,71 Trans to Property Appraiser 12,600 12,600 12,000 -4.8% Trans to Tax Collector 18,800 181800 17,000 -9.6% Trans to 322 Poll Bay Irr and Land 21061,800 21061,800 440,000 -78.7% Reserve for Contingencies 97900 11,400 15.2% Reserve for Capital 90,000 36,400 -59.6% Reserve for Cash Flow 39,700 39,700 0.0% Fund 320 Adopted Budget Amended Budget Forecast Actual VC less Actual % Act/FC OPERATING EXPENSE 150,000.00 331,539.52 331,600.00 169,738,35 161J861.65 51.2 178,600 19.1% TRANSFERS 34,100.00 34,100.00 34100.00 34,100.00 100.0 34100 0.0% Carry Forward 177,905.42 Trans to Property Appraiser 31300 8,900 169,7% Trans to Tax Collector 61000 13,100 118.3% Trans to 109 PH MSTUBU Fd 34100 34,100 0.0% Agenda item of I Page 1 of Pelican Bay Services Division Capital CIP Category/Project Title FY 2021 Amended SAP FY 2022 Budget Comments Estimates Need FY22 Available 50124 Hurricane Irma 620F860 160,000 0 0 0 0 0 501157 Asset Management 431553 0 0 0 0 0 0 50126 Beach Renourishment initiative 1,078o884 673,196 1,171,100 393,458 547,895 0 9027943 50143 Field Site Improvements 298,195 98,200 0 0 0 0 98 200 50108 Lake Aeration 540588 0 0 0 0 0 0 50066 Pelican Bay Hardscape Upgrades 527,678 286 0 0 0 -156,000 0 51026 Pelican Bay Lake Bank Enhance 11132,742 8831475 10267,300 0 21460,840 -310,065 0 50211 Pelican Bay Ops. Buildings 21061,800 20318,654 1,451,200 0 3,900,000 -130,146 0 50103 Pelican Bay Traffic Sign Renovation 95,971 0 150,000 0 150,000 0 0 50158 Roadway Improvements 20,945 20,945 80,000 0 80,000 0 20,900 50178 Sidewalk Maintenance/Enhancements 2421355 0 0 0 0 0 0 50212 Sidewalk Replacement 6300000 58,128 0 595,714.57 0 0 0 99322 X-fers/Reserves - Fund 322 440j5DO 1,347,234 974,700 0 0 0 974,700 PELICAN BAY BALANCE SHEET September 30, 2021 (UNAUDITED) Pelican Bay Landscape, Street 5afety, ts Beach Clam Bay Capital Operating Fund Lighting Proects Projects Projects L 109 778 322 320 TOTAL ASSETS Cash and investments 2,881,450.74 443,284.81 7,104,526.47 213,898.99 10,643,161.01 Interest receivable - - - - - Trade receivable, net - - - - Due from other governments 181,492.46 181,492.46 Total assets 2,881,450.74 443,284.81 7,286,018.93 213,898.99 10,824,653.47 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable 105,177.63 5,806.16 34,392.19 37,990.76 183,366.74 Wages payable - - - - - Retalnage payable Total liabilities 105,177.63 SjS06.16 34,392.19 370990.76 183,366.74 Fund balances: Fund balance 2,776,273.11 437,478.65 7,251,626.74 175,908.23 10,641,286,73 Total llabilities and fund balances 2,881,450.74 443,284.81 71286,018,93 2130898,99 10,824,653.47 Fund Balance at the end of the period 217761273,11 437,478.65 7,251,626.74 175,908.23 10,641,286.73 Unspent balance of projects: Small projects under $200K - - 190,741.33 - 190,741.33 50126-Beach Renourishment - - 1,066,653.89 - 11066,653,89 50211-PBSD OPS BUD - - 2,346,505.87 - 2,3460505.87 50212-PBSD PHI -SW - - 6530842.82 - 653,842.82 51026-PBSD Lake Bank Restoration - - 9480230,42 - 948,230.42 51300-Clam Bay Restoration 152,510.41 1520510.41 Total unspent balance of major projects 50205,974.33 152,510.41 5,3580484.74 Budgeted reserves 991000-Reserve far contingencies 124,100.00 - - - 124,100.00 991700-Reserve for disaster relief 680,900.00 - - - 680,900.00 992090-Reserve for sinking fund - - 370,000.00 - 370,000.0O 993000-Reserve for capital outlay 300,000,00 90,000.00 - - 390,000.00 994500-Reserve for future construction and improvemen - - - - - 998000-Reserve for cash 483,600.00 390700.00 523,300.00 Total budgeted reserves 1,588,600.00 129,700,00 370,000,00 2,088,300.00 Budgeted commitments at the end of the period 10588,600.00 129,700.00 50575,974.33 152,510.41 7,446,784.74 1,187,673.11 307,778.65 1,675,652.41 23,397.82 3,194,501.99 !|! mAl! ![ . § 7 §: 9\ ) )w \ ! s§ a#®�\ a C\[3 §) l } rr --� \' °! ! .,• , � .�gp} ........ ....� � ° ! ;.]! !.! ... ;"• §; El;�, ;; !}( } \] )}(§} I)� ! !!';|� •'' q ..,. . ....., .. . , ! .|.,] �§! ! ., .,.10 . ,,.....| | ! \�)d .��\ . ..,,.. © 9! 9w40M ! }.}.{.., .:.!!,!! ..... .. -.. ! 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