HomeMy WebLinkAboutItem VI-A Discussion Information Operating Budget and FeesAGENDA ITEM VI-A_ PAGE 1__
C I T Y O F B O U L D E R
PARKS AND RECREATION ADVISORY BOARD AGENDA ITEM
MEETING DATE: December 19, 2016
AGENDA TITLE: 2018 Parks and Recreation Operating Budget
PRESENTERS:
Yvette Bowden, Director, Parks and Recreation Department
Alison Rhodes, Deputy Director
Jonathon Steiner, Business Analyst
Amanda Bevis, Business Analyst
EXECUTIVE SUMMARY:
The 2018 Parks and Recreation Department operating budget submission includes
requests of approximately $23M. While department revenues are steady, expenses are
increasing and so the 2018 submission prioritizes efforts to maintain financial
sustainability. The PRAB’s role related to the operating budget is advisory, and the intent
of this item is to:
Review the department’s operating strategies;
Update the board on the outlook of department finances; and
Gather input from the board on proposed 2018 requests.
BACKGROUND:
With the acceptance of the 2014 Parks and Recreation Master Plan (master plan),the
department received clear direction from the community to focus on six key themes. In
aligning work with these themes, staff efforts have focused on lifecycle management of
assets and services have resulted in a long-term Capital Investment Strategy (CIS) as well
as a Service Delivery Model for programming. These two strategies are foundational to
the department’s the efforts to support the mission to promote community health and
well-being through the provision of high quality parks, facilities and programs.
Results of the 2016 Community Survey demonstrate community members’ satisfaction
with the system of parks, facilities and program provided by the department. Over 96% of
respondents reported visiting a city park, and 95% indicated a positive response, either
excellent or good, for their experience with city parks. Nearly two thirds reported using
Boulder’s recreation centers, and 92% indicated a positive experience with these
facilities. In both aspects, Boulder rated higher than national benchmarks.
The department provides these high-quality services through the responsible stewardship
of community funds and thoughtful allocation of limited resources. Key shifts since 2014
AGENDA ITEM VI-A_ PAGE 2__
include focusing available funding on the operations and maintenance of existing parks
and facilities as well as facilitating the delivery of programs with community partners
where most effective. In alignment with the CIS and Service Delivery Model, the
department is steadily making progress related to master plan initiatives.
Capital Investment Strategy and Asset Management
The department’s commitment to “Take Care of
What We Have” is evidenced through the
development of an asset management program and
10-year CIS. Through this program, the department
can carefully program operating and capital funds
on the assets most in need and of most benefit to
the community. In recent years, work includes the
refurbishment and enhancement of six parks: North
Boulde, Emma Gomez Martinez, Crestview,
Holiday, Christenson, and Admiral Arleigh A.
Burke Parks. In addition, neighbors are enjoying
new parks at Elks and Bill Bower and staff is
planning for the replacement of past their life cycle facilities at Scott Carpenter Pool and
the Boulder Reservoir.
Recreation Priority Index and Service Delivery Model
To ensure recreation services align with master plan direction, the identification of costs
and service categorization allows for intentional use of community subsidy (see Figure
1). Following master plan direction to categorize services based on organizational
mission, target population served, service outcomes,
and other variables, the department has pioneered a
Recreation Priority Index (RPI) to objectively and
transparently place programs into service categories.
Staff developed the RPI and costing methodology in
partnership with the PRAB in 2014. Application of
these tools results in more intentional use of subsidy,
as fees are gradually adjusted to align with desired
cost recovery targets. Because of this work, the
department has been able to provide high quality
services through partnerships at the Pottery Lab,
with Kinesis Dance for recreational dance classes
and with a parent booster club for competitive
gymnastics. In addition, implementation of the
Service Delivery Model ensures staff are regularly
reviewing program life cycles, achievement of
service objectives and customer satisfaction.
Figure 2: Master Plan Community Survey
indicates that tax subsidy should focus on
programs for those with low incomes
and/or disabilities.
Figure 1: The overall condition rating for BPR
assets is good, with deficiencies at a few key sites
having a poor or worse rating.
AGENDA ITEM VI-A_ PAGE 3__
Funding and 2018 Context
The department is funded by multiple sources that vary in
stability and required use. Currently, the department has
direct financial management responsibilities of ~$27M
for operating and capital purposes and has potential
access to other funding sources for one-time growth -
related capital expenses.
General Fund: The city’s General Fund is
supported by fees, sales, property and other taxes.
General Fund dollars are allocated to city departments
and projects by City Council through the annual budget
process. The department primarily uses its allocation to
fund park and forestry operations and department
administration. Central Finance manages this fund, which
generally has a strong outlook.
Permanent Parks and Recreation: The
Permanent Parks and Recreation Fund is the department’s
capital improvement and acquisition fund. Funded specifically from property and
development excise taxes, the fund is dedicated for acquiring land and renovating or
improving existing parks and recreational facilities. It may not be used to fund daily
operations or routine maintenance. Due to strong property tax collections and projects,
this fund’s outlook is the strongest of the department’s major funding sources.
.25 Cent Sales Tax Fund (.25 ST): The .25 Fund provides for operations,
maintenance and development of department facilities. Sales tax is the source, which has
been relatively flat in recent years and is not as robust in the City of Boulder as other
surrounding communities. While this fund is projected to be stable in the out years, the
department is planning for conservative spending given increased expenses.
Recreation Activity Fund (RAF): The RAF is used to operate and maintain the
department’s many recreation, fitness and sports facilities and programs. RAF funds are
largely derived from program and facility use fees with some supplemental funding from
the General Fund that are used to fund community benefit programming such as
programs for individuals with disabilities and those with low-incomes. Non- standard
personnel expenses account for ~28% of the RAF.
ANALYSIS:
Recently, new policies, including the Affordable Care Act, are impacting department
expenses. With the Affordable Care Act, the department is providing benefits to more
non-standard employees. In addition, the State of Colorado legislation to steadily increase
minimum wage from $9.30 in 2017 to $12.00/hour in 2020 will also impact the
department. As urged by City Council in April, 2017, the 2018 Parks and Recreation
Operating Budget anticipates an increase in the minimum wage to $11.00/hour to phase
implementation towards the newly mandated minimum wage. Since the pay rate may
Figure 3: BPR Funding Sources
AGENDA ITEM VI-A_ PAGE 4__
change as council considers the 2018 annual budget, staff is prepared to revise the
operating budget according to council’s direction.
Considering the anticipated policy changes, the 2018 Operating Budget aims to:
Comply with the city’s Guiding Principles;
Align with the city’s budget guiding principles (see Attachment A); and
Continue the implementation of the department’s approved Master Plan and
provide high quality parks, facilities and programs.
Specific budget requests, identifying projected increases in expenditures or revenues, fall
into the categories of personnel requests, programmatic changes and operational changes
as outlined below:
Programmatic and Operational Changes: The department continues to identify
ways to appropriately recover costs and provide excellent service to community
members.
o Civic Area Activation: Funds Civic Area events, including Snow Much
Fun and associated staffing costs;
o Park Operations: Maintains funding to utilize the three Ready to Work
crews contracted by the department to provide continued public restroom
access;
o RAF Stability: Cost recovery proposal via fee increases and General Fund
subsidy to address minimum wage implementation;
o Recreation Small Equipment Replacement: Replaces aging equipment
in the recreation centers; and
o General Fund Wellness Transfer: Establishes a methodology for
General Fund allocation to fund the department’s support of the city’s
Well-Being@Work program for city employees.
Personnel Requests: The department has done much work in 2016 to
identify/convert non-standard positions to standard positions based on the
department’s ongoing business needs. Outside of that process, staff requests the
following additional increases in standard Full-Time Equivalents (FTEs) for
2018:
o Civic Area Ambassador: One-year, fixed-term extension of a current
full-time position that contributes to Civic Area programming and
maintenance;
o Construction Project Coordinator: 0.5 FTE request to supplement
existing vacant 0.5 FTE and staff a full-time position to appropriately
manage the large-scale, ongoing capital projects supported by .25 funds;
o Web Specialist: 0.5 FTE position request to supplement the existing 0.5
FTE to accommodate increased needs for and shift to digital media; and
o Facility Operations Coordinator – 0.25 FTE request to add to the
existing 0.75 FTE position at the South Boulder Recreation Center to fully
support customer service and operational needs.
AGENDA ITEM VI-A_ PAGE 5__
Fee Increases
The budget includes ongoing efforts to align recreation fees with policy direction per the
department’s master plan. Fees for certain exclusive programs such as adult registered
fitness classes will increase 10% to reduce subsidization. At this time, program fee
increases do not consider the increases in non-standard personnel related to minimum
wage.
Access fees to Recreation Centers last increased in 2016. In 2018, staff recommends fee
2018 to promote the intentional use of subsidies to align with master plan direction (see
Attachment B). Based on Master Plan direction, proposed fee increases for youth and
senior access continue to provide high levels of subsidy equating to 40% (youth) and
25% (senior) off the daily drop-in rates. The department’s enhanced Financial Aid
program supports access for community members with low-incomes. These proposed fee
increases also allow the department to partially fund increased expenses due to minimum
wage growth.
Value of Service and Market Comparison
With drop-in entry to any of the three city recreation centers, visitors can access the
following amenities and services available in the system: lap pool, leisure pool,
gymnasiums, racquetball court, hot tub, sauna, steam room, weight room, cardio
equipment, lighted tennis courts, outdoor sand volleyball, drop-in fitness classes and
drop-in mind/body classes.
In purchasing a multi-visit pass (10, 20 or 40 punches), customers receive discounted
access to the three recreation centers, the two outdoor pools, and the Boulder Reservoir.
With the purchase of an annual pass, members receive all the previously mentioned
benefits at an even greater discount, as well as daily access to childcare at a deeply
discounted rate, towels with visits to the recreation centers and a discount on registered
programs (as available).
Recreation center access fees are higher than other local public agencies’ facility fees
(see Attachment C). This can generally be attributed to: business practices that include
the cost of service delivery in fee consideration, lower general fund subsidies to
recreation services as compared to other agencies and the scope and quality of amenities
available. By comparison, department services are priced below the market rate.
At this time, staff does not recommend fee increases to the outdoor and seasonal facilities
such as Scott Carpenter Pool, Spruce Pool and the Boulder Reservoir, as pricing for these
amenities will be evaluated as facilities are updated and through development of the
South Shore Site Management Plan.
Staff recognizes the valuable role Boulder’s parks and recreation system plays in the lives
of community members, and submits the above requests with thoughtful consideration of
the need to be fiscal stewards of limited community resources and to maintain
accessibility to all community members.
AGENDA ITEM VI-A_ PAGE 6__
NEXT STEPS:
At the end of July, staff will review the budget submission with the city’s Executive
Budget Team. In July and August, the Central Budget staff will refine and finalize the
city’s overall 2018 budget for review by City Council at a study session on September 12,
2017. Additional discussions will take place as needed, with final budget approval
scheduled for October, 2017.
Attachments:
Attachment A City of Boulder Operating Budget Guiding Principles
Attachment B Boulder Parks and Recreation Fee Schedule
Attachments C Market Fee Comparison
Attachment A
City of Boulder Vision:
Service Excellence for an Inspired Future
OPERATING BUDGET GUIDING PRINCIPLES
The City of Boulder develops an annual budget (could be biennial), as required by charter and
state law. This budget serves as a financial plan and guiding tool to support organizational
strategies and values. The budget allocates resources across programs and service areas in order
to achieve stated outcomes, which reflect community priorities and meet legal and fiscal
requirements. The operating budget is designed to provide funding for all ongoing city
operations, as well as one-time, non-capital projects and work efforts, and to provide general
support of the city and council work plan. The city prioritizes its operating budget resource
allocation both across and within funds based on the following guiding principles.
The City of Boulder Operating Budget should be developed:
1.in accordance with the city’s Budget Policies. Two of the primary policies are:
a.One-time revenues shall only be used to cover one-time costs. Ongoing costs
should not be greater than ongoing revenues.
b.Debt service shall not be utilized for operating expenses.
The full list of policies can be found on-line at: Budget Policies;
2.under the overarching guide of the Sustainability Framework, to reflect the principles of
Priority Based Budgeting (PBB) and align resource allocation so as to have the most impact
on achieving PBB results;
3.in support of the city as a whole (One City, One Boulder): maximizing outcomes, providing
efficient and effective service delivery, implementing continuous improvement, meeting
service needs, and supporting collaboration and community partnerships, across the city
and not limited by department boundaries;
4.consistent with, and in support of, council-accepted master plans and strategic plans;
5.to maintain critical services to the greatest extent possible;
6.to fund ongoing operating and maintenance costs, and provide for appropriate and
strategic levels of replacement funding;
7.strategically along with the Capital Improvement Program; aligning operating and capital
investments for coordinated and efficient results; weighing the impact of capital investment
on operating costs and evaluating operating savings that can be realized through capital
investment;
8.to be nimble and flexible, providing capacity to respond to emerging and unanticipated
needs, and in support of building resilience as an organization;
9.to invest in organizational capacity by supporting training and employee development;
10.to optimize leveraged external funding opportunities;
11.to maintain an adequate level of reserves and support a strong bond rating;
12.using sound decision-making based on robust metrics, when available.
Boulder Parks and Recreation Fee Schedule
Fee Type 2016 Fee Proposed 2018 Fee % Change
Adult 7.50$ 8.00$ 7%
Senior 5.75$ 5.75$ N/A
Youth 4.50$ 4.75$ 6%
Resident 552.00$ 588.00$ 7%
Non-Resident 689.00$ 735.00$ 7%
Resident 369.00$ 393.00$ 7%
Non-Resident 489.00$ 491.00$ N/A
Resident 274.00$ 302.00$ 10%
Non-Resident 363.00$ 378.00$ 4%
Youth School Year BasketBall Pass Youth 25.00$ 25.00$ N/A
Resident 235.00$ 256.00$ 9%
Non-Resident 255.00$ 272.00$ 7%
Resident 176.00$ 184.00$ 5%
Non-Resident 191.00$ 196.00$ 3%
Resident 144.00$ 154.00$ 7%
Non-Resident 159.00$ 163.00$ 3%
Resident 125.00$ 136.00$ 9%
Non-Resident 133.00$ 142.00$ 7%
Resident 94.00$ 98.00$ 4%
Non-Resident 106.00$ 106.00$ N/A
Resident 77.00$ 82.00$ 6%
Non-Resident 85.00$ 85.00$ N/A
Resident 66.00$ 72.00$ 9%
Non-Resident 69.00$ 74.00$ 7%
Resident 49.00$ 52.00$ 6%
Non-Resident 52.00$ 53.00$ 2%
Resident 41.00$ 43.00$ 5%
Non-Resident 46.00$ 46.00$ N/A
Resident 163.00$ 163.00$ N/A
Non-Resident 203.00$ 203.00$ N/A
Resident 65.00$ 70.00$ 8%
Non-Resident 75.00$ 81.00$ 8%
Resident 885.00$ 956.00$ 8%
Non-Resident 1,105.00$ 1,193.00$ 8%
Adult 7.00$ 7.00$ N/A
Senior 5.00$ 5.00$ N/A
Youth 4.00$ 4.00$ N/A
Resident 139.00$ 139.00$ N/A
Non-Resident 174.00$ 174.00$ N/A
Resident 99.00$ 99.00$ N/A
Non-Resident 109.00$ 109.00$ N/A
Resident 88.00$ 88.00$ N/A
Non-Resident 110.00$ 110.00$ N/A
Resident 289.00$ 289.00$ N/A
Non-Resident 326.00$ 326.00$ N/A
Adult 7.00$ 7.00$ N/A
Senior 5.00$ 5.00$ N/A
Youth 4.00$ 4.00$ N/AReservoir AdmissionRecreation Center
10 Punch Pass
Adult
Senior
YouthRecreation Center Admission ChargesRecreation Center Daily Admission
Recreation Center Annual Pass
Adult*
Senior*
Youth*
*Family passes: Additional members of the household pay half price on annual passes with one adult family member full priced
annual.
Recreation Center
40 Punch Pass
Adult
Senior
Youth
Recreation Center
20 Punch Pass
Adult
Senior
Youth
Recreation Center -PromotionalTwilight Pass All
One Month Pass All
Family Pass
2 Adults plus unlimited children
Youth
FamilyOutdoor Pool AdmissionsOutdoor Pool Daily Admission
Splash Pass
(Outdoor Pool Pass)
Adult
Senior
Reservoir Gate Fees
Attachment B
Recreation Facility Fee
Market Comparison
Recreation Center Daily Drop-in
Colorado Benchmark Agency 2017 Fees
R NR R NR R NR R NR
Boulder $ 4.50 $ 4.50 $ 7.50 $ 5.75
Average $ 3.95 $ 5.50 $ 4.15 $ 5.44 $ 5.35 $ 7.20 $ 4.20 $ 5.80
Louisville $ 4.00 $ 7.00 $ 4.00 $ 6.00 $ 9.00 $ 4.00 $ 7.00
Longmont $ 3.75 $ 4.75 $ 4.00 $ 5.00 $ 5.00 $ 6.25 $ 4.00 $ 5.00
South Suburban $ 4.00 $ 5.25 $ 4.00 $ 5.25 $ 5.25 $ 7.25 $ 4.25 $ 5.50
Westminster $ 3.50 $ 4.50 $ 4.00 $ 5.00 $ 5.00 $ 6.00 $ 4.00 $ 5.00
Arapahoe PRD $ 4.50 $ 6.00 $ 4.75 $ 6.50 $ 5.50 $ 7.50 $ 4.75 $ 6.50
Boulder Area Providers
Provider Adult
Drop-In
Youth
/month
Adult
/month
Senior
/month
Family
/month
Boulder $ 7.50 $ 24.00 $ 47.00 $ 31.00 $ 72.00
YMCA $ 37.00 $ 65.00 $ 52.00 $ 93.00
CAC $ 30.00 N/A $ 199.00 Varies $ 184.00
Rally Sport $ 20.00 N/A $ 110.00 $ 110.00 $ 179.00
Adult 19-59 Senior 60+
Agency
Child 3-12 Youth 3-18
Attachment C