PBSD MSTU Agenda 11/09/2022PELICAN BAY SERVICES DIVISION
Municipal Services Taxing and Benefit Unit
NOTICE OF PUBLIC MEETING WEDNESDAY, NOVEMBER 9, 2022
THE BUDGET COMMITTEE OF THE PELICAN BAY SERVICES DIVISION
WILL MEET ON WEDNESDAY, NOVEMBER 9 AT 1:30 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 49 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 Herrmann, Operations Analyst (absent)
Lisa Jacob, Project Manager
William Munmi, Sr. Field Supervisor
Barbara Shea, Administrative Assistant
Ricic 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 unammousl .
APPROVAL OF 4/08/2022 MEETING MINUTES
Ms. McLaughlin motioned, Dr. Chicurel seconded to approve the 4/08/2022
meeting minutes as presented. The motion carried unanimously.
1
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. Ile 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. I-Ie 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
tluoughout 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
2
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. Doirill 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 unanimously.
The meeting was adjourned 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
Retamage payable
Due to other Government
Commercial Paper Loan
Total liabilities
Fund balances:
Fund balance
Total liabilities and fund balances
Pelican Bay lantlscape,
Pelican Bay
street
Safety, Lake & Beach
Clam Bay Capital
Assessment
Financed Capital
i
Operating Fund
Lighting
Projects
Projects
Funded Activities
Projects
109
728
322
320
Total
323
TOTAL
2,083,523.05
307,474.84
5,724,220.47
148,417.01
8,263,635.37
2,184,363.96
10,447,999.33
3,805.80
494.72
8,464.48
259.55
130024.55
742.86.
13,767.41
447.10
-
-
-
447.10
-
447.10
8.00
184,961.21
-
184,969.21
-
I. 184,969.21
40,45J.39 2,03q.J0 393,535.92 - 436,008.01 31,559.60
99,884.13 5,396.80 - - 105,280.93
(92,167.24) - (92,167.24) (15,779.80)
128.21 64.30 - - 192.31 -
Fund Balance at the end of the pedod
1,947,314.22
3000473.96
3,116,297.48
148,676.56
201690321.02
Balance of Loan Available to Draw
7,500,000.00
Interest Account remaining with Trustee
(1,910.00)
Contingency Account remaining with Trustee
(3,596.00)
Interest earned on unspent loan proceeds
(9oS70.98)
Unspent balance of projects:
Small projects under$200K
-
-
557,918.28
-
-
50126-Beach Renoudshment
-
-
693,557.51
-
-
50231-PBSD OPS BUD
-
-
3,746,847.06
-
-
50212-PBSD PHI -SW
-
-
8730282.20
-
-
50212-PBSD PH2-SW
-
-
-
-
61184j404,00
5102&PBSD Lake Bank Restoration
-
-
1,623,783.92
-
-
51300-Clam Bay Restoration
316,545.35
Total unspent balance of major projects
70495,388.97
316,545.35
6,184,404.00
Budgeted reserves:
991000-Reserve for contingencies
1080500.00
11,400.00
-
-
-
991]00-Reserve for disaster relief
700,000,00
-
-
-
-
992090-Reserve for sinking fund
-
-
-
-
993000-Reserve for capital outlay
1104500.00
50,Oo0.00
110A00.00
-
-
994500-Reserve for future construction and improvement
-
-
-
-
3,500,000.00
998000-Reserve for cash
475,000.00
40,000.00
_
Total budgeted reserves
1,394,000.00
101,400.00
110,400.00
3500,000.00
Budgeted commitments at the end of the period
1,394,000.00
1910400,00
7,605,788.97
316,545.35
9,694,404.00
5530314,22
199,073.96
(41489,491.49)
(167,868.79)
(0.00
Financing Recap:
Funding for current sidewalk
program planned
6,500,000.00
Funding reserved for future capital projects
3,500,000.00
Financing Secured
10,000,000.00
46J,S6J.61
105,280.93
I10],94J.04)
92.31
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yme assessment and capstaltwolect projemitans-2M3 WO Ptl(7922)
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 $225K per year.
Lake renovation may require more than $1.Om per year. We have some
discretion here but we need abetter fix on the number.
There will be projects we have not anticipated.
Agentla item #10-2
Page 1 of 1
PBSD Proposed Loan Schedule (7/7/22)
.,... _�, %Date
Interest 3 % to
Principle
Loan Balance
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_Loan 0rig lnation
1/1/2023
$30,000
0
$4,5002000
$2502000.00
-$220,000.00
Interest only to conversion to
fixed loan 1/1/224 ® 3%
7/1/2023
$67,500
0
$6,500 000
$260,000.00
-$182 500.00
Semi annual interest and
principal payments I
1/1/2024
$97500
I 0
$6500,000
I_ $250200000
I $15250000
23/24
7/1/2024
$162,500
1 216,000
$6,284,000
$2502000.00
$128,500.00
Fixed Loan 15years ® 5%
1/1/2025
$157100
216000
r
$6,068,000
$250000.00
$123,10000
24/25
7/1/2025
$151,700
216000
$5,852000
$25000000
$117,70000
1/1/2026
$146,300
2167000
_l.
I $62636000
$25000000
$712,30000
25/26
7/1/2026
216,000_
$5,4204000
`.. $250000.00
$106900.00
7/1/2027
_$140900 _.1
$735500
216000
$5,2042000
$250,000.00
$10150000
26/27
7/1/2027
$130,100
216000
$4,988,000
$250,000.00
$965100.00
_..�
1/1/2028
ICI
$124,700
216,000
$4,772000
$250000.00
$90,70000
27128
7/1/2028
$119,300
216,000
$4,556000
$25000000
$8530000
111/202E
$113,900
2162000
$42340,000
$250,000.00
$79 900 00
28/29
7/7/2029
$108500
216,000
$4,1242000
$2502000.00
$7450000
l
';. 1/1/2030
$103700 _i
216000_
$3,908,000
$319,100.00
County contribution ends. li
7/1/2030
$97,700
216,000
$3,692,000
I $313,70000
1/1/2031
$922300
216,000
$33476000
1 $308,30000
30/31
7/1/2031
$86,900
216,000
$37260000
$302,90000
1/1/2032
$81,500
216,000
$3,044,000
I-
$297,50000
31/32
7/7/2032
$76100
216000 1
$2,828,000
$29210000
1/1/2033
$70700
216000
$2,612,000
$286700.00
-
33/34
7/1/2033
ICI.
$59 900 l_
216 000
$2,396,000
]
$275,900.00
1/1/2024
$542500
216,000
$23180 000
$270,500 00
Interest rate resets after 10 J
1
years + mutual put option
10 years
$2,4082200
4 320,000
$3,5002000
$33228,200.00
7/1/241
109,000
432,000
$1,748,000
--- __ l
541,000
7/1/25 `..
87400
432000 1
$1,3167000
519,400
7/1/26
65,800
432000 1
$884000
497800
7 11 /2 7
44 200
432 000
$452 000
476,200
711/28
22,600
432,000
$20,000
454,600