Title
Review of Fiscal Year 2019-21 Biennial Budget for the Recreation and Parks Department
Body
To: Honorable Chair and Members of the Recreation and Park Commission
From: Amy Wooldridge, Recreation and Parks Director
Re: Review of Fiscal Year 2019-21 Biennial Budget for the Recreation and Parks Department
BACKGROUND
On June 6, 2019, the City Council adopted a two-year City budget for Fiscal Year (FY) 2019 - 2021. The Alameda Recreation and Parks Department (ARPD) is comprised of three divisions: Park Maintenance, Recreation Programs and Mastick Senior Center.
This report will focus on the FY 2019-20 budget but Exhibit 1 includes numbers from FY 16-17 through FY 20-21.
DISCUSSION
The Park Maintenance Division budget total for FY 2019-20 is $3,914,908 funded by the General Fund. Maintenance of Marina Cove, Bayport and Marina Village Parks are funded separately by assessment districts from the adjacent neighbors and businesses.
City Council authorized two new Gardener positions for Park Maintenance. In FY 2019-20, one Gardener position is funded 50% from the General Fund and 50% from Marina Village assessment district. In FY 2020-21, a second Gardener position is funded fully from the General Fund. Other primary Park Maintenance costs include contractual services for smaller projects (fence repairs, replacing drinking fountains, etc.), tool and equipment repair, and utilities (water, electrical and sewer). Water costs are increasing 8% each year in this budget cycle. Staff are exploring ways to convert decorative grass areas to drought tolerant landscape to reduce overall water usage and subsequently reduce costs.
The Recreation Fund 280 is a special revenue fund that is separate from the General Fund and includes the Mastick Senior Center Division and Recreation Division. In FY 2019-20, a total of $2,479,000 is being transferred from the General Fund into the Recreation Fund 280. The purpose of this transfer is to offset costs for programs that are low or no cost to the community and provide a significant community benefit. The General Fund revenue helps fund the following programs: Parks and Playgrounds, Aquatics, Teens, Mastick Senior Center and People with Disabilities as well as the Administration budget to account for staff, services and supply costs that support these programs. The General Fund transfer was increased this budget cycle to help offset the impact of the minimum wage increase to $15/hour as of July 1, 2020 plus an annual 2% Consumer Price Index (CPI) increase and an additional $250,000 to offset higher cost allocation for building maintenance as described below.
The Recreation Fund also includes revenue from fees for services, such as program fees, rental fees, and some grants. The overall Recreation Fund budget should balance, although for this budget cycle, the budget includes a draw down from the Fund reserves. This is due to increased cost allocation described below and increasing staff costs. Staff strives to exceed the revenue estimations, and often does, as well as expend less than budgeted when possible. In recent years, the Recreation Fund has ended in a net positive each year despite negative budget balances.
Overall, the expenditures for Recreation Fund programs has remained relatively consistent, with the exception of staff increases, utility increases, and cost allocation (which is reflected in the Administration budget). Cost allocation are charges to individual departments for their use of internal services such as City Attorney, City Clerk, City Manager’s office, Human Resources, Finance, and Information Technology as well as other city-wide costs such as worker’s compensation and insurance. The cost allocation methodology was reviewed by an outside consultant last year and adjustments were made that significantly impacted the Recreation and Parks budgets. The cost allocation for Recreation Fund 280 increased from $831,998 in FY 2018-19 to $1,415,056 in FY 2019-20.
The Capital Improvement Program includes several projects for FY 2019-20. The City Buildings project is managed by Public Works and includes improvements to the O’Club, replacing the restroom at Godfrey Recreation Center, and improvements at Leydecker Recreation Center to eliminate flooding problems and improve the restroom.
The Heating, Ventilation and Air Condition (HVAC) system will be replaced at Mastick Senior Center with $565,000 allocated. This is funded by the Mastick Legacy Fund, Non-Departmental Fund, Building Capital Fund, Mastick cell tower revenue, and Recreation Fund.
The City Council also approved the following new funding for Park Maintenance Replacement Fund and the Annual Playground Replacement Fund:
FY 19-20 FY 20-21
Park Maintenance Replacement Fund $175,000 $250,000
Playground Replacement Fund $75,000 $250,000
For FY 2019-20, City Council allocated $75,000 toward a play area at Jackson Park, if approved.
FINANCIAL IMPACT
There is no financial impact from receiving this report.
RECOMMENDATION
Review of the Fiscal Year 2019/21 biennial budget for the Recreation and Parks Department.
Respectfully submitted,
Amy Wooldridge, Recreation and Parks Director
Exhibits:
1. FY 2019-21 Biennial Budget - Recreation and Parks Department