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PBSD BC Agenda 11/07/2022PELICAN BAY SERVICES DIVISION Municipal Services Taxing and Benefit Unit NOTICE OF PUBLIC MEETING MONDAY, NOVEMBER 7, 2022 THE BUDGET COMMITTEE OF THE PELICAN MAY SERVICES DIVISION WILL MEET ON MONDAY, NOVEMBER 7 AT 3:00 PM AT THE PELICAN BAY SERVICES DIVISION, 1ST FLOOR OF THE TRUIST BANK BUILDING, SUITE 102, LOCATED AT 801 LAUREL OAK DRIVE, NAPLES, FLORIDA, AGENDA 1. Pledge of Allegiance 2. Roll call 3. Agenda approval 4. Approval of 5/04/2022 meeting minutes 5. Audience Comments 6. Review of October Financial Statements a. New format b. Year-end adjustments 7. Financial impact of Hurricane Ian 8. Budget impact of Oakmont Lake Project close-out 9. Review of plans for draw down of financing a. Timing of cash flow requirements by major project for FY2023 b. Options for budget amendments to defer future loan draw down 10. Ten-year financial projection 11. 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 45 2022 The Budget Committee of the Pelican Bay Services Division met on Wednesday, May 4 at 1*00 p.m. at the Truist Building, 801 Laurel Oak Drive, Suite 102, Naples, Florida. In attendance were: Budget Committee Michael Fogg, Chairman Joe Chicurel Pelican Bay Services Division Staff Neil Dorrill, Administrator Chad Coleman, Operations Manager Darren Duprey, Assoc. Project Mgr. Also Present Dave Mangan Denise McLaughlin Michael Rodburg Karin Herrmamr, Operations Analyst (absent) Lisa Jacob, Project Manager William Mumm, Sr. Field Supervisor Barbara Shea, Administrative Assistant Rick Swider, PBSD Board APPROVED AGENDA (AS PRESENTED) 1. Pledge of Allegiance 2. Roll can 3. Agenda approval 4. Approval of 4/08/2022 meeting minutes 5. Audience Comments 6. Final Budget Review 7. Other Business 8. Adjourn ROLL CALL All members were present and a quorum was established. AGENDA APPROVAL Ms. McLaughlin motioned, Dr. Chicurel seconded to approve the agenda as resented. The motion carried unani) mousy, APPROVAL OF 4/08/2022 MEETING MINUTES Ms. McLaughlin motioned, Dr. Chicurel seconded to approve the 4/08/2022 meeting minutes as resented. The motion carried unanimously. Pelican Bay Services Division Budget Committee Meeting May 4, 2022 AUDIENCE COMMENTS Mr. Swider provided and discussed a document entitled, "Assignment Methodology" which was added to the record. He provided a brief history of the assignment of ERU's to PB properties. The "Assignment Methodology" document provided data and a comparison of the acreage, ERU's, factors, and FY2022 assessments paid by the Ritz Carlton, the Waterside Shops, and the Club at Pelican Bay. Mr. Swider noted the differences in the average tax per acre paid by each of these three entities. He suggested that board members and PB residents are not aware of our assessment methodology. Mr. Fogg commented that this issue was reviewed and discussed by the board a few years ago. Ms. McLaughlin agreed. Mr. Fogg commented that he will include this issue on the agenda of the next Budget Committee meeting, although there is no new information. Mr. Coleman commented that the assessment methodology ties back to the County's land use code. Mr. Rodburg commented that 40% of Pelican Bay's water management system comes from the golf course. Mr. Dorrill commented that if the PBSD Board chose to change the rationale for our ERU methodology, this change would have to be presented to and approved by the BCC at a public hearing. FINAL BUDGET REVIEW Mr. Fogg provided a document entitled, "2022/23 Budget Proposal — Summary (05/04/2022)," which was added to the record. He commented that not much has changed since the last version of the budget (reviewed at the last committee meeting), except for the addition of $162,500 for Oct. 1 employee salary increases. Mr. Fogg commented on the overall changes in the ERU assessment from FY22 to FY23, including a 23.6% increase in Operating, a 17.1% decrease in Capital, and an overall 9.3% increase in the total ERU assessment from $799 to $873. He reviewed the components of the operating and capital portions, and noted that all of our projects are fully reserved for, except for our Sidewalks Phase 2 Project. Mr. Coleman commented that our proposed FY2023 budget will be submitted to the County Manager's Office next week. Mr. Fogg commented that our sidewalk replacement contractor will bill us monthly throughout the Sidewalks Phase 2 project. He noted that we will draw down funds from our commercial paper line of credit every six months, and that there will be no principal repayments until FY2025, when the project is complete. The FY2025 will have to accommodate principal repayments of $450K - $650K plus interest at a higher rate than anticipated. Mr. Fogg suggested that the $490,000 in other capital outlay be reduced by making adjustments to reflect the following, (1) $1.3 million for lake bank restoration, (2) $400,000 for beach renourishment, (3) $200,000 for street signs, and (4) $300,000 for street lighting. Mr. Coleman noted that the budget includes a transfer of $370,000 from Fund 778 to Fund 322. Mr. Fogg also suggested that our budget for debt service be reduced from $209,000 to $100,000 which is more realistic. Mr. Coleman will follow up with the County Budget Office. In conclusion, Mr. Fogg commented that a 9.3% increase in our ERU assessment is reasonable in the face of a large increase in personnel expenses for "catch up" and widespread inflationary pressure, The committee agreed. Mr. Dorrill noted that this increase works out to $6.10 per month per ERU. Mr. Coleman provided a PBSD organizational chart, which was added to the record. He noted that we currently have 10 temporary workers. Mr. Coleman commented that he has recently requested another temporary worker from our contracted vendor, who has been unable to fill our Pelican Bay Services Division Budget Committee Meeting May 4, 2022 request. Similarly, Mr. Coleman has been unable to fill a full-time County employee vacancy in recent months. He commented that based on this environment of a lack of available workers, there is no justification to change the mix of County employees and temporary labor. Ms. McLaughlin commented that our landscape workers do a very good job and therefore she sees no reason to cut back on our landscape salary expenses. Mr. Dorrill commented that we continue to contract out specialty work such as tree trimming and exotic removal. Mr. Rodburg motioned, Mr. Mangan seconded to recommend that the proposed budget that we discussed today is presented to the full board for approval. The motion carried unanimous! , The meeting was adiourned at 2:31 Michael Fogg, Chairman Minutes approved �] as presented OR L� as amended ON [ ]date PELICAN BAY BALANCE SHEET October 31, 2022 (UNAUDITED) ASSETS Cash and investments Interest receivable Trade receivable, net Due from other Funds Due from other governments Total assets LIABILITIES AND FUND BALANCE Liabilities: Accounts payable Wages payable Retainage payable Due to other Government Commercial Paper Loan Total liabilities Fund balances: Fund balance Total liabilities and fund balances Pellcan Bay landscape, Pellcan Bay Street Safety, Lake & Beach Clam Bay Capital Assessment Financed Capital Operating Fund Lighting Projects Projects Funded Activities Projects 109 778 321 320 Total 323 TOTAL 2,0834523.05 307,474.84 5,724,220.47 148,417.01 84263,635.37 2,184,363.96 104447,999.33 3,805.80 494.7E e/164.48 259.55 13,024.55 742.86 13,767.41 447.10 - - 447.10 - 447.10 8.00 194,961.21 184,969.21 184,959.21 2,087,783.95 307,969.56 51917,646,16 14B,676.56 8,462,076.23 2,185,106.8E 10,647,183B5 4%457.39 2,034.70 393,515.92 - 436,008.01 31,559,W 467,567.61 99,884.13 5,396.80 - - 105,280.93 1050280.93 - - (92,167.24) - (92,167.24) (15,779,80) (107,947.04) 128.21 64110 - - 192.31 - 192.31 - - 2150D000.00 30500,000.00 - 2,500,000.00 140,469.73 7,495.60 2,001,340.68 20949,314.01 151779,80 2,965,093.91 1,947,314,22 300,473.96 3,116,297.48 148,67656 5,512,762.22 2,169,327.02 7682,089.24 Fund Balance at the end of the pedad 1,94J,314.22 300,4J3.96 3,116,29].48 148,6J6.56 2,169,32J.02 Balance of Loan Available to Draw 7,500,0D0.00 Interest Account remaining with Trustee (1,910.00; Contingency Account remaining with Trustee (31596.00] Interest earned on unspent loan proceeds (9,570.98] Unspent projects: Small projects under $200K Small projects - - 557,918.28 - - 50126-Roach Renourlshment - - 693,557.51 - - 50211-PBSD OPS BID - - 3,746,847.06 - - 50212-PBSD PHI -SW - - 973,282.20 - - 50212-PBSD PH2-SW - - - - 6,184,404.00 51026-PBSD take Bank Restoration - - 11673*783.92 - - 51100.Clam Bay Restoatlon - - - 316,545.35 - Totalunspentbalanceofmajorprojects - 7,495,388.97 3160545.35!AL 6,184,404.00 Budgeted reserves: -I 991000-Reserve far centingenciez 108,500.00 11,400.00 - - - 991700-Reserve fordlsaster relief 700*000.00 - - - - 992090-Reserve forsinking fund - - - - - 993000-Reserve forcapital outlay 1100500.00 500000.00 110*400.00 - - 994500-Reserve forfuture construction and improvement - - - - 31500,000,00 998000-Reserve forczsh 475,000,00 40,000.00 Total budgeted reserves 1,394,000.00 101,400.00 110,400.00 3,500,000.00 Budgeted commitments at the end of the period 1,394,000.00 101,400.00 70605,788.97 316,545.35 9,684,404.00 553,314.22 1990073.95 (4,489,491.49) (167,868.79) Financing Recap: Funding for current sidewalk program planned 6,500,000.00 Funding reserved for future capital projects 3,500,000,00 Financing Secured l0,000,0o0,00 \; !a )\§ §§§§f; � � � � §§/ §§§00Ls \ \0 !w» ® \ | ( ) § G) ) { .§, )} §2Q )f) \)}{\ \ «){ §§(I§ _ \(\\\ \\/�/ _0®/ ƒ/\ _m22y /\}{)!+)J !/$! §¥%g2 ,, :=ala Lj §k\��`fz` 2+Gm»x § � §) � {j § ))\ ))()) \ \ \\ �\ � 46 �� {\ ¥ R ,q } k }\ � ...*.@ ^` ....! ! ) \\ } / \ \ \} �\ }/ ! ..,..... .§§ R§r. ....! : :m //((k E }�� \ }) \k} \\ \j\ ®§R ; (00 0 § § § §\\ \! E-` R \k \)) \\ `jR }};&« . ! § ;az -{ r) : § ) }t \ c {\ kkqW E ;) ) 1 ; !! §)i7 (- })! j!!!2:& §oa�2 ))t12 :; 1\0 3 k( §§) /}� \0 � � � � )k \ m©} §\j6 \\ "Mr46§) \\\}��\N((\m 5§§ !! !! f`bif§ 5 c mHm5 {((((w\\00 � ( E ) :) ) ( { § E-- § § `® °( \§i{j§ 000 ; )\\ §ef$)/(/\\\(f ]x ` ;22 c7;]\)i{ 00000HS§/! 0 '2{ „ e „ e 2 \)§ �! k \�\ \� {\ \\r \\ \( 55 !§ 0. \\ Ti. \\ }} \0 § {\ )\) 7 * )\ k > ` u \ 4262 !§ §()§� 4f§ - j ##\®){) \ 08_� !(&§ !a dR } } } CD {} ' } // \ § �° - - §)!) — §t\} w \ — )¥§\\ act Assessment a cap poll prelact projections -zvzs WLt Slanzz) tEMB 57nal! Mail Earn Eau smm- m .mm eau Eau amm.. asmm I I.mm Hell He car I trial atop lsm sae, EMI al NO a( 1 s6 Sabe H 6e Sa es Sass ea Hs6 Hes b6 c 03o s ! s 261 f 1 - w bte 9 Sote_ bole Ipte door ahi III 01 OSw _. xoi (Notes) _ $t Sf u SISe _ _ r, ' 156 I56SE 35 saaa so 35 va fI o r 4t 41 atl ' ! s 1ros 0 Iso s0 so 0o ' w 1� 50 e0 a030 Sono cavital _ _ eat _ wl - b! ab ab .. as� ab b Sat "i aeof oa5 iw 50 To a wu SU35 " _ as as a as I e � ba bo 1 Total— tob5 sob s — mss to s5 w sb se sobs i� bs _ n t s $ssz 062 5z z NEU limo - - - I lNote 61 S700 45700 roo _ 70o SEEM Saw Sr Oo sraO I $ebz v t z s ion >< m ztl s . sal 5 _ s wUDI progress IF. zt so s Dal _ a cumutauve z _ zl pa 0a1 _ i pw zzaz - - W"dollars� i..t. - f ! +rest az.� asi __. _.__ aoa szSimon _ 11 11 Won Tom porn soon somn amen soom I Smm Somn sa0.15 - _ froachRem. 040 0 0 IV1,00 i 1 Go I AD I m LAU Im ro no ForadwaySauntur ow 0 Ot0 crio 0 o t o w Ne 0 x0 0,40 040 0 w 0 M 0400am ELEA ow -. ow Nor one 009 ON!0 AS OACI-. OftherCarehal 012 p obtepervace i - - - ey x z 0sz 0sz ato 5z c ontrullon -! r ra r z it 0z5 psr usr ar az ozx_ _ re s r tat zw ! zts zts ,— 215 2,57 2,67 zse ' cawt -- tsf --t st - 5, ssf t.sf ) t.st I.. is -tst tst t.st._ am 054 - ON -' uat oat 1.o t07- 316AMkicremoln 700 IMxt w<, USA$065 p_, m area totalassessment Ill wan 100i W06 "et WOR o Wtb port 1 _ No, 1AMMIceroverls Loan :w 4 or ae, iy t�e.ean� La, at b ,� em.eax.as , I � I I II i 1 jl I � li I I Agenda item #10-1 Page 1 of 1 Capital Projects 22-32 (Constant Dollars) Projection is in constant 22/23 dollars. Operating expenses including Clam Bay and street lighting remain constant - no change in scope of operations. All the Increase in total revenues is directed to capital projects. An increase of approximately 3% in total assessment revenue (in constant dollars) is required in 23/24 and 24/25. From 25/26 onwards a 1 % increase is required to meet projected spending. Funding of street light reserve commences in 25/26. Full cost of financing (approx. $800K) begins in 24/25. Interest rate of 5% assumed. Risks In The Projection Operations center replacement costs may be significantly higher than projected - these costs are not included in the projection. Interest rate of 5% assumed, could be less in short term but interest rates are increasing. Projection assumes we can negotiate a 15 year loan. A 10 year loan would increase annual debt service costs by $2251r\ per year. Lake renovation may require more than $1.Om per year. We have some discretion here but we need a better fix on the number. There will be projects we have not anticipated. Agentla item #10-2 Page 1 of i PBSD Proposed Loan Schedule (7/7/22) %... , . ; ..; w m . z i, % I I Date _ Interest 3% to Principle Loan Ravines County Funds Required Notes 1/1/24 then 5% Repayment Contribution to side walks - $125K /Qtr 7/1/2022 0 0 $2 000 000 I Lan Origination 1/1/2023 $305000 0 $4500,000 j $25000000 $22000OuO Interest only to conversion to fixed loan 1/1/224 ® 3% 7/1/2023 $67,500 0 $6,5001000 $2501000.00 1-$182,500.00 Semi annual interest and 1 principal payments -1F 1/1/2024 $97500 0 $6500,000 $2501000.00 $15250000 23/24 7/1/2024 $162,500 216,000 $6 284,000 $2503000 00 $128 500 00 Fixed Loan 15years ® 5 1/1/2025 $157,100 _ 216,000 $6,0682000 $250,000.00 _�. $123,100.00 24/25 7/1/2025 $151,700 216J000 $5,8522000 $250000.00 $117,700.00 1/1/2026 ---_-_$146,300 216,000 _.. $536362000 $2505000.00 $112,300.00 25/26 7/1/2026 $1400900 2162000 $52420000 L $250,000.00 $106900.00 1/1/2027 $135500 216F000 $52204ODO $260000.00 $10150000 26/27 _.� 7/1/2027 $130100 216,000 $4,988000 $250000.00 $96,100.00 1/1/2028 $124700 216,000 - $4,772000 i.. $25000O.00 $90700.00 -_. 27/28 7/1/2028 _. $119300 _. 216000 $42656000 I_ $250000.00 $85300.00 1/1/2029 _--$113,900 _I 216000 $41340,00D $250000.00 ` $79,90000 28/29 7/1/2029 $1084500 216OOD $4,124,000 $250,000.00 $742500.00 1/1/2030 $ 10 31100 216000 I $3,908,000 I $319,100.00 County contribution ends. 7/1/2030 $97 700 216 000 $3,692,000 $313,700.00 1/1/2031 $925300 216 000 $3,4762000 } $308,300 00 �.. 30/31 7/1/2031 $86900 216,000 $3,260r000 $302,900.00 li 1/1/2032 _. $81 t500 216,000 $3,044uOO $2972500.00 31/32 7/1/2032 $76,100 2161000 $2,828000 $292,100.00 1/1/2033 $70700 � 216,000 $22612,000 i $286,700.00 33134 - 7/1/2033 $59900 L 2165000 $22396000 I $275,900.00 7/1/2024 $54 500 1 216,000 i $2,180 000 i. $270 500 00 Interest rate resets after 10 jyears + mutual put option 10 years $2 408 200 _. 4 320 000 $3 500,000 $33228 200.00 7/1124. 109 000 432,000 $1,748 000 I. 5415000 -_ 7/1/25 87400 432000 $1,316000 _ 5197400 7/1126: 65 800 432 000 $884 000 f 497 80D _. __- _ _ - 711127 44 2OD 432 000 $452,000 476,200 7/1/28. 22600 432000 $20,000 454600