Title
Report and Make Recommendation on the Fiscal Year 2015 - 2017 Budget for Recreation and Parks
Body
To: Honorable Chair and Members of the Recreation and Park Commission
From: Amy Wooldridge, Recreation and Parks Director
Re: Report and Make Recommendation on the Fiscal Year 2015 - 2017 Budget for Recreation and Parks
BACKGROUND
The City Council adopts a two-year City budget with the next budget process being Fiscal Year 2015 - 2017.
DISCUSSION
The Parks Maintenance, Swim Center Maintenance, and Hardball Field budgets are funded by the General Fund. Maintenance of Marina Cove and Bayport Parks are funded by assessment districts on the adjacent neighbors and businesses.
All recreation program revenues and expenditures are in the Recreation Fund, which is a special use fund that is separate from the General Fund. In the proposed FY 2015 - 2017 budget, the Recreation Fund is close to balanced. This is an improvement from the last three fiscal years, in which the Recreation Fund had a structural deficit that has been incrementally reduced each year.
The numbers below will vary slightly from the final numbers presented to City Council in late April 2015, as the Finance Department finalizes cost allocations. Cost allocations are transfers made for General Fund internal services and funds, such as human resources, city management, attorneys, and finance department services. It also includes equipment fund set aside, such as vehicles, facilities, and information technology.
Important Points of Interest:
· The Parks Maintenance expenditure increases include rising EBMUD water costs.
· The Swim Center Maintenance budget adjustments reflect a new maintenance structure that relies primarily on City part-time staff, rather than solely on contractors. This has reduced the total expense and improved service. The joint use agreement with AUSD stipulates a 50% cost sharing, which previously was handled as total payments to each entity. The payments are now handled as a net difference payment, which is incorporated in the City's expense budget.
· This proposed two-year budget includes a 2.5% CPI (Consumer Price Index) annual increase of the General Fund transfer to the Recreation Fund. This is intended to help offset rising staff and supply costs. The General Fund transfer was also proportionately increased to offset significant additional Cost Allocations to the Recreation Fund.
· In FY 2016/17, there is $30,000 allocated in the Recreation Fund to purchase a new registration software system. The current software is being phased out by the company and will no longer be supported as of 2017.
· The cash fund balance of the Recreation Fund is $1,350,000 with an additional $350,000 repayment pending from the Golf Fund. A 30% reserve will be maintained at all times in the Recreation Fund. Of this fund balance, approximately $260,000 is revenue generated from cell tower leases and is allocated for park and Mastick Senior Center capital improvement projects in the FY 2015-2017 budgets.
· The Golf Fund reflects increased revenues per the Greenway Golf lease agreement. This agreement stipulated a set lease payment of $75,000 for the first four years, in recognition of the significant capital improvement funds that Greenway is investing in the golf complex. Starting in FY 2016/17, the Greenway Golf lease payment changes to 5% of gross revenue with a required minimum of $300,000. Other Golf Fund adjustments reflect an anticipated new lease with the on-course food and beverage operator, whose lease expires in December 2015. This includes an increase in revenue and a decrease in expenditures since the current lease requires the City to pay all restaurant utilities.
· The Mastick Senior Center Advisory Board annually allocates funds towards capital improvements at the center. The net deficits shown in that budget will draw down from the Board's fund balance, which is $560,000.
RECOMMENDATION
Review and recommend to the City Council, the Fiscal Year 2015 - 2017 Recreation and Parks Department Budgets.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Attachments:
1. FY 2015 - 2017 Recreation and Parks Budget Details