HomeMy WebLinkAbout6A - Update on the Parks & Recreation Department 2008 Operating BudgetTb: Parks and Recreation Advisory Board
FROM: Jan Geden, CPRP, Director of Parks and Recreation
Abbie Novak, Business and Finance Manager
SUBJECT: Update on the Parks & Recreation Department 2008 Operating Budget
DATE: May 16, 2007
Overview
As communicated in the Budget 101 presentation (Attachment A) at the PRAB April business
meeting, the Pazks and Recreation DepartmenYs budget is complex. The budget is accounted for
in six funds,: General Fund, .25 Cent Sales Tax Fund, Recreation Activity Fund, Permanent
Parks and Recreation Fund, Lottery Fund, and .15 Cent Sales Tax Fund. The department is
designated as the fund manager for the .25 Cent Sales Tas Fund, Recreation Activity Fund,
Permanent Parks and Recreation Fund and Lottery Fund.
The operating budget is allocated for the departmenYs divisions and administrative work units:
Parks and Planning division, Recreation division, Business and Financial Management work unit
and Policy and Information Services work unit.
The department is in the process of establishing the 2008 operating budget based on guidelines
and projections provided by the city's Finance department. Additional infortnation regazding the
2008 budget submission will be available at the June business meeting.
Budeetarv ~hallen~es
The major challenges identified that the department must consider while establishing its 2008
operating budget include the followang items:
Blue Ribbon Commission Findings
The ciry's Blue Ribbon Commission is developing a strategy to ensure economic sustainability
with the upcoming sunsets of various sales tax initiatives including:
• General Fund (38 portion) will expire 12/31/2011
•.15 Cent Sales Taac (designated) will expire 12/31/2012
•.25 Cent Sales Tax (P&R) will expire 12/31/2015
• 33 Cent Sales Tax (Open Space) will expire 12/31/2018
•.15 Cent Sales Tax (Open Space) will expire 12/31/2019
• General Fund (.15 portion) will expire 12/31/2024
It is anticipated that budget decisions in the neaz-term will be considerate of factors facing all
Colorado communities including the shift from goods-based economies to service-based
economies. The ciry is faced with "must do" budget strategies or priorities that must be funded
per the city business plan, to maintain adequate reserves and fund liabilities. Furthermore,
AGENOA ITEM #~i- R, PAGE 1
Boulder's economic volatility is compounded by structural factors that undermine the
productivity of sales taai including an aging population and the failure of the sales tax base to
inflate with costs of doing business. As a result, retail sales taac as a major revenue source will
fund proportionally less of the base budget.
Utility and Fuel Expenditures
Staff recommended that funds for utility and fuel budgets be prioritized to receive any available
city funding. A significant growth in utility expenses occurred in 2005 after the submission of
the 2006-2007 budget, resulting in a substantial unfunded liability citywide. Fuel cost
projections will remain volatile and it is anticipated that they will continue to rise at a rate higher
than the Consumer Price Index (CPI).
The Recreation Activity Fund Volatility
To ensure the solvency of the Recreation Activity Fund (RAF), revenue generation must grow at
the same rate as expenditures. Although recreation revenues grew 10.25 percent in 2006, RAF
expenses are projected to increase in 2007 and beyond based on higher costs related to day-to-
day business, including increased staffing, utilities and other operational requirements. Staff
assumes personnel expenses will continue to grow annually at approximately four percent.
Additional seasonal staff will be required to support the departmenY s more populaz seasonal
program and service offerings requiring a higher staff=to-participant ratio. Staff also assumes the
majority of non-personnel expenditures wiil generally rise at the rate of the Denver/Boulder CPI
of approximately three percent. However, utilities and fuel expenses are projected to remain
volatile and it is anticipated that they will continue to rise at a rate higher than the CPI. As a
result, the gap between revenues and expenditures will continue to grow. The gap between
revenues and expenditures must be closed to prevent additional budget reductions. The
department will focus on identifying a long-term solution to increase the sustainability of its
recreation programs and services
Per best practice, the department strives to maintain a ten percent fund balance reserv2 in the
RAF. This balance would be available to sustain programs and services in the event of
decreased financial performance due to weather-related incidence and/or program and facility
attendance.
The sustainability of the fund is questionable under the current cost recovery model. To
maintain solvency, revenue generation must grow at the same rate as expenditures. Even though
the fund is currently balanced, it is critical that the department continue to focus on improving
long-term sustainability.
Budaet Policv and Revenue Issues
The budget process provides an opportunity for the department to submit policy and revenue
issues to the City Manager. The City Manager evaluates the requests and may recommend that
City Council review and approve departmental requests. The department's budget submission
included the following policy and revenue issues:
1. Does Council support Parks staff providing ougoing landscaping services for city
AGENDA ITEM # V I-A PAGE 2
facilities? Throughout the past several yeazs, the Pazks staff has gradually acquired the
responsibilities of maintaining the grounds and snow removal for city facilities not under the
departmenYs purview. The Pazks staff provides landscaping services at the Municipal Compiex
including the Municipal Building, Main Library, West Senior Center, Pazk Central and New
Britain buildings, as well as at the Public Safety Building, Atrium Building, Youth Services
Building, Hazbeck House, Dairy Center, and East Senior Center. Services include lawn, flower,
and shrub maintenance such as mowing, pruning, mulching, and weed control. Snow removal is
also provided at these facilities. The significance of this support was realized by the Pazks staff
during this past winter due to the volume and frequency of snow received.
Per the Citywide Financial and Management Policies, stafF believes that its landscaping services
can be categorized as administratave or general governance charges whereby the cost allocation
practices can be instituted. This will ensure that the department is able to recover its costs
incurred by the .25 Sales Taat Fund and the General Fund in providing landscaping services to
other city departments.
2. Does Council support the explorafion of changes to the City Charter for the purposes of
extending the current 20 year laad lease provision and broadening the parameters of usage
for the Permanent Parks and Recreation Fund?
Land Lease Provision
The city charter limits the term of franchise agreements to 20 yeazs in Article VIII, Section 111.
Article XI, Section 1641imits terms of leases, permits or licenses granted on pazk lands to five
yeazs, ("The term of any license or permit granted hereunder shall not exceed five yeazs, and any
such license or permit so granted shall be revocable by the council at its pleasure at any time,
whether such right to revoke be expressly reserved in such permit or license."). Some business
owners interested in partnering with the city for facility development have spoken to the Parks
and Recreation Advisory Boazd and city staff, asking if the 20 year lease provision could be
modified or made more flexible. If lease or franchise agreement terms were extended, it is more
likely that private investors would commit to providing capital funding for recreational or
concession facility development. A change to this provision could also impact leases that the
city has with other organizations such as Chautauqua. Staff is seeking City Council support to
explore a process for a charter change to ailow for a longer term lease period under specific
conditions.
Permanent Parks and Recreation Fund
In the past, staff has recommended identifying and appropriating funding for ongoing park
operations and maintenance prior to new pazk development or construction. Pazk maintenance is
funded by either the General Fund or the .25 Cent Sales Tax Fund. Park development is funded
through the Permanent Parks and Recreation Fund or the .25 Cent Sales Tax Fund.
The .25 Cent Sales TaY Fund was designed to provide pazk maintenance funding for the pazks
specifically constructed with .25 Cent Sales TaY funds or from the proceeds of the .25 Cent Bond
Fund. The General Fund is designated to provide park maintenance funding for the pazk system
developed before the .25 Cent Sa1es Taac Fund's existence and for any pazks constructed with
Permanent Pazks and Recreation Funds.
AGENDA ITEM # V I-A PAGE 3
The Permanent Parks and Recreation Fund is defined in city charter Article XI, Section 161,
stating the "Said fund sha11 not be used for any purpose other than the acquisition of pazk land or
the permanent improvement of park and recreation facilities." The fund lacks an identified
funding source for ongoing operations and maintenance of park sites acquired or constructed
with its funds. Staff believes that funding for ongoing pazk maintenance needs to be identified
prior to park development. Staff is seeking City Council support to explore a process for a
charter change to broaden the pazameters of usage of funds in the Permanent Parks and
Recreation Fund and to develop criteria for an acceptable level of operations and maintenance
funding for pazk sites developed with its funds.
3. Does Council support the continuing implementation of the CSBM? The department
incorporated the Core Services Business Model (CSBM) in its master plan to institute a method
for establishing cost recovery expectations for its programs and services. The CSBM aligns with
the city's business plan categories of essential, desirable and discretionary, as well as the user fee
guidelines included in the Citywide Financial and Management Policies. The city's fee
guidelines are based on full, partial, and no-cost recovery expectations.
In 2004, a framework to standardize fees for recreation programs and services that included a
pricing methodology and cost recovery levels (the CSBM) was instituted by the department. The
cost recovery levels range from basic, or services provided as the foundation of municipally-
funded pazks and recreation systems for the widespread enjoyment of the communiTy, to
enterprise-like, services that can compete in the free mazket and are tazgeted towards niche users
based on an expressed demand and willingness to pay.
The model was established to align with the city's business plan goals, as well as to support the
department's master plan goais including:
• Maintain and protect our pazks and recreation facilities and programs;
. Become economically sustainable;
. Engage a broader range of the communiry, especially underrepresented populations; and
• Enhance our quality of life.
The CSBM provides a framework to sustain the broad range of recreation programs and services
currently provided to the Boulder community. The tiers in the CSBM reflect cost recovery goals
that aze representative of Boulder and aze based on the existing levels of support from the
General Fund, high community demand and the departmenYs desire to meet this demand. While
not perfect, it provides a reasonable approach to decision-making related to cost recovery and
subsidy for the deparhnent's programs. If current fees and charges remain the same and the
CSBM is not implemented, the department would have to develop a new methodology for
pricing programs and applying subsidy and consider actions as raising fees, eliminating
programs, seeking additional revenues or subsidy, or a combination of the aforementioned
actions.
The department's master plan, including the CSBM, was presented for acceptance to City
Council on December 19, 2006. At that time, staff recommended the following elements relative
to the adoption of the CSBM:
• The model is intended to be flexible to respond to changing community and
AGENDA ITEM # V I-A PAGE 4
department needs.
The CSBM attempts to provide fair and equitable fees and chazges to the community.
Full implementation of the CSBM will occur in the action plan of the department's master
plan.
The model will be reviewed every two yeazs.
Staff is seeking direction regazding the continuation of implementing the CSBM that is a strategy
in the master plan goal to become more economically sustainable. The CSBM assisted in
determining the departmenYs action and vision plan funding projections for the master plan and
is a component of the plan's financial sustainability program.
4. Does Council support returning excess revenues in the Recreation Activity Fund (RAF)
to the fund balance? The financial position of the RAF improved in 2006 as a result of greater
than anticipated revenue generation. To increase revenue streams, recruit new business and retain
current business, new practices have been implemented by Pazks and Recreation since 2004 to
provide improved customer service and outreach. These practices include:
• Implementation of a pricing methodology for programs, activities and services;
• Implementation of the annual pass Monthly Payment Option intended to give payment
flexibility to users and to make purchasing an annual pass more affordable;
• Implementation of a discount program for the purchase of annua] passes aimed at employees
of businesses that belong to the Boulder Chamber of Commerce;
• Implementation of special promotional programs that target existing and potential customers;
and
• Hiring a Mazketing Manager to centralize and evaluate mazketing efforts with an interest in
effectiveness and increased return on investment.
In 2006, the RAF fund balance increased by $292,000 due to a ten percent increase in revenues
from the previous yeaz. However, the long-term sustainability of the fixnd is uncertain and being
monitored. The departrnent projects the performance of each individual fund for a period of six
yeazs. ProjecUons currently indicate the RAF fund balance will be insufficient to wver required
reserves by 2011.
Staff is seeking direction regazding the use of excess revenues in the RAF. Returning excess
revenues to the RAF fund balance contributes to the departmenYs master plan goal of becoming
economically sustainable by improving the fund reserve. T`he volatility of the fund does not
ensure that excess revenues wouid be obtained each yeaz. Excess revenues could be made
available in the short term to subsidize some programs and services and could provide one-time
subsidy as part of an interim strategy to implement and evaluate the CSBM. If excess revenues
in the RAF' aze used in this manner, staff would develop criterion to ensure that the use of these
funds align with City Council and master plan goals.
5. Does Councii support the standardization of the recreation center annual pass discount
structure? Staff evaluated its current pricing structure for annual pass offerings to ensure a
consistent discount is applied to all annual pass products. The analysis of the annual pass pricing
structure indicated that discrepancies exist for the discount applied to each annual pass category.
AGENDA ITEM # V I-A PAGE 5
T'he department used the same methodology for its 2007 rates to arrive at its proposed rates for
2008, increasing the daily drop-in by .25 cents for all categories including adult, senior, teen, and
child.
~;>J~ ,•
bY ,~~7'~1~.P.,~
:: `~~Ml. - ~ `
~ 4.x.'T~b4i5:•JwU"h- .. ' ~~.C'~.'SP.~+~O~
e.~mAir_
Adult $6.25 $6.50 4.0%
Senior $4.25 $4.50 5.9%
Teen $3.75 $4.00 6.7%
Child $3.25 $3.50 7.6%
The current discount structure vazies significantly by category. The annual pass prices were
established by multiplying the daily drop-in rate by 105 visits per yeaz (assuming holders visit
twice a week) and applying a discount. For adults, the daily drop-in rate of $6.25 multiplied by
105 visits equals $656.25. A discount of 27.9% reduces the price to $473.00. The discounts for.
the four categories of adult, senior, teen and child range from 27.9 percent to 54.5 percent.
;Ca'~e~. ` 2007 ~i~i~~'assw':
<, _<,.. .. ,~iscount
Adult $473.00 27.9%
Senior $279.00 46.9%
Teen $207.00 54.9%
Child $179.00 54.5%
To ensure consistency, staff recommends that the discount structure be standazdized across all
age categories. Staff believes the base drop-in rate should be the determining factor utilized to
provide the pricing differential between the age categories. Thus, the discount applied to
calculate annual passes should be identical for all age categories.
To resolve this discrepancy, staff recommends urilizing a standard 30 percent discount for all
categories of annual passes. The implementation of this proposal will result in considerable
percentage increases for senior, teen and child pass holders. However, the fees chazged to these
groups are discounted and priced significantly less than adults, who are the majority of pass
holders.
^LsvII'W.~ +~ " #T'41[~.~~5~ S ~VA~1~' ^~iµ'~
~ '
~ ~, y p ~ ~ . m~~rv'~-
b
~*
~R~i~
~~. ~. 5 `
~r _ .
~~ F (~~y+~,_.
~
~l.W'l{.'tl~H~'f
e
# ~~t -fs~ '~'
{~' ,. F~ ~ t ~, k 'i'
rr s~,- it°'y ~ v0 e :
~
~ _
#~ -}~ ~~yp +~
f
S.~
~ C
$YF
' `
E
Tt
, : .
, A.
'~r,
-'_.".~#'~.?.,
` ~FP,
.
wx"N'.*"~
~~~ _„~,~
y _ ,YOJ.,
LL
t :
tYXr
~~ , y , ,
. _
,
Adult 356 $473.00 $682.50 30% $477.75 1.0%
Seniar 100 $279.00 $472.50 30% $330.75 18.5%
Teen 11 $207.00 $420.00 30% $294.00 42.0%
Child 3 $179.00 $367.50 30% $257.25 43.7%
Staff recognizes that it is unreasonable for these fees to be effective immediately on January 1,
2008. Although the intent is to develop a consistent discount structure, staff is cognizant of the
impacts including the potential lack of community receptiveness to the recommended changes.
AGENDA ITEM # V I-A PAGE 6
Staff recommends a gradual increase spanning three yeazs to implement the new discount
structure. The changes are not intended to generate revenue for the department. Minimal
increased revenues aze projected since the majority of annual passes are held by the adult
category, which is proposed to increase by one percent. As with the intent of the CSBM, the
department strives to improve its operations and believes this recommendation will create
consistent and equitable pricing policies for the Boulder community.
2008 Budget Timeline
The following activities are key components of the citywide budget process:
ul 11 eeting with City Mana er to discuss Pazks and Recreation's 2008 budget submission
ul 19 lanning Boazd meets to review 2008 - 2013 CIP
ugust 14 008 recommended budget is submitted to the City Council
ugust 24 epartments submit u dated fees
ugust 28 ity Council study session on the 2008 budget
Se tember 11 ity Council stud session on the 2008 budget
October 2 City Council - First readin of the 2008 budget
October 16 City Council - Second readin of the 2008 bud et
Next Steas
Additional information regazding the 2008 budget submission will be available at the 3une
business meeting.
The department welcomes input and questions regazding the 2008 operating budget from the
PRAB. As always, PRAB members ate encouraged to attend the communiTy discussions over
the next six months. Please contact Abbie Novak at 303-413-7253 with any questions or
comments.
Attachments
A: Budget 101
AGENDA ITEM # V I-A PAGE 7
Attachment A
Parks and Recreation
Budget 101
Parks and Recreation Advisory Board
Business Meeting - 23 April 2007
Overview
~ pF eoV~
~~~ /','Z1._~9
~~~,T?
v..`. s var
~ Citywide Financial Overview
^ Citywide Budget Process
^ Parks and Recreation Department Budget
AGENDA ITEM # v ! - ~ , PAGE ~
Citywide Financial
Overview
~ly ~F ~t,~
V~ ~~
Local Economy ~~~~
RrV \ Ibeallw
0 General Fund Revenue is the primary source for
city services and programs
^ Taxes (sales and use ta~c, properry taac)
^ User Fees (recreation progcam fees, planning, and
development fees)
^ Intergovernmental Revenues (e.g., gcants)
AGENDA ITEM #~ V l-/-} , PA(3E 9
~~~~ BpV~O
• t~`
Ci+ y'de Revenue Sources G~'~'~~9
`~1 v..4. a nK.e,~w~.
(hhrr
Plunnin~ A ~,~.
Dccelup~nrn~ -`~ SalcsTvc
~~ .i8%
i
l:~iliry~ Rai~~..
20'%
Parks & Rccrc.~w~n ~. Prupcrtc 7'ax
4%u 10'Yo
I
In[ergovcrnmcntal J
9°io
y ~F B~U<
G~~ O~p
Ci 'de Sales and Use Tax P;?i~~~
~
^ Several Funds receive a portion of the city's 3.41%
sales and use tax and are very dependent on this as
a source of funding:
~ General Fund (45% of the 3.41°/~)
~ Transportation (18% of the 3.41°/~)
E Open Space (26% of the 3.41%)
~.15 Cent Sales Tar: (4% of the 3.41%)
E.25 Cent Sales Tax for Parks & Recreation (7% of the
3.41%)
AGENDA ITEM #~ V 1- ~, PAGE f~'~
pF BO~~t
G~~~ O9
Economic Reality -'~'~~~
v..~. a w.,..~~
^ City sales tax collections decreased bv 17%
between 2001 and 2004
~ September llth
e Crossroads Mall
4 Retail sales tax leakage to other communities
^ The General Fund is highly dependent on
sales/use tax (45%)
^ Impact of General Fund reductions on Parks and
Recreation:
a Parks Division is funded primarily by the General Fund
~ Recreation Acriviri~ Fund (RAF) is funded primarilv bv fees;
it is subsidized ($1.7M in 2007) from the General Fund to
providc services
pF BOU<
y
~ ~
~
F
~
9
Sales and Use Tax . ~ .._,.
"'~~~~
~
~..w
~~.,~
,~x: _- - -- - -
:.~~ l~fkty."~Y~50, 4- : K_ 1J ~.~l~~Y~`.".
I
'
59': ~~ . ~ . . .. . . ' .. . .
___" _ _. _ _ " ,
581.51f
5&'1 ~97
~°= x= r -- - - - - ma- ---
_
~ I s~e ~u
« 3 5 3<0
~ 5--, ~" ' ._ _ . . "-. __.' ' _ ' ' _"._ .. _ _ ..
i
I
E
¢
5~1.32' S71.47'
. S,-C i'__ : . _ ___" "' "._ "-_' --_._.. _ _
-- --~
I ssv,eae
ses ooc
S600Q'~ .- _ .._ - _ _._-_. _-"-._'__-___.~--_... -_- _. . ~
2000 7001 2~D2 7003 2DOa 2005 2006 .^007
I~GENDA ITEM # ~' ~- F, PAGE~
y ~~ ~~~~~0
~~ ~'P
Blue Ribbon Commission ~~''~'~~
P~r4. 6 R~cre~~+on
0 The city's Blue Ribbon Comrnission is developing
a strategy to ensure economic sustainability with
the upcoming sunsets of various sales tax
initiatives
~ General Fund (.38 portion) will expire 12/31/2011
~.15 Cent Sales Tax (designated) will expire 12/31/2012
~.25 Cent Sales Taa~ (P&R) will expire 12/31/2015
^.33 Cent Sales Tax (Open Space} will expire 12/31/2018
^.15 Cent Sales Tax (Open Space) will expire 12/31/2019
~ General Fund (.15 portion) will expire 12/31/2024
~`~~ ~F BOU~O~~
Ci ide Financial Summary P~L~~~
~
^ Factors facing all Colorado communities
E Goods-based versus Service-based
^ Volatility is compounded by structural factors that
undermine the productivity of sales taa
~ Aging population
~ Failure of sales tax base to inflate with costs of doing
business
^ Retail sales tax as a major revenue source will fund
proportionally less of the base budget
AGENDA ITEM # v1- A, PAGE ~°~
Citywide Budget Process
City Business Plan y°F eO~`
i`~ ~~~
and Policies ~ ~"'`~'~~
r.n. a a.~«~
Budgets are established per the ciry business plan
and financial policies
^ Business Plan service categories include:
A Essential
~ Desirahle
~ Discretionary
^ User Fee Guidelines outline service cost recovery
expectations of: The depamnent's Core Services
~ Full CoSt CeCOVety Business Model aligns writh the ciry's
~ Partial cost recovery business plan categories and the user
fee guidelines included in the Citywide
E No cost recovery Financial and Management Policies.
pGENbA iTEM # ~ W~-' ~ ~ ~ , ~AGE ;
Fiscal and Operational ~-~°F B°`'`~
~` /~`~9
Guidelines ~~`'~'~
P~r4~ & Ile~crullon
^ Financial policy
~ Guidelines for inflation increases
^ Consistent submission format
^ Funding sources and cost impact projections
^ Ongoing or one-time costs
E Ongoing: revenues that can be forecast and distributed
annually
~ One-time: revenues that only occur once and cannot be
used to pay ongoing costs
^ Personnel
~: Projected salary and benefit costs
~ Worksheets for positions or increases
y ~F B~V<
,~ O
~ / ~9
Budget Cycle: Jan 3- Dec 4 p~'~~~
Action Responsibility
Issuc instructions ~ti~th Ciscul, operational and pnlicv ~;uidciincs I3udkct Officc
Develop and submit Departments
Compile and analyze requests Budget Office
Review and identify in accordance with city Business Plan City Manager
Approval, refusal, or modification based on revenue projections City Manager
Distribute recommended budget to City Cauncil - June 15th Budget Officc
Community study sessions Budget Officc
Adjustments Departments
Approval - October 16th Ciry Council
Administer, manage, and analyze Budget Office
& Departments
AGENDA ITEM # i- , PAGE ~'
Parks and Recreation
Department Budget
y ~F B~~C
0~ ' ~~
,~~ ,_ .
Department Funding ~~`~~~~~
r..w a x«~.n..
^ The Parks and Recreation Department is funded
with a combination of six funds
~ General Fund
~ Recreation Activity Fund
~ Permanent Parks and Recreation Fund
~ .25 Cent Sales Tax Fund
~ .15 Cent Sales Tau~ Fund
~ Lottery Fund
~1DA ITEM # ~ /~ i - R, , PAGE /_~
~y pF 80U~O
G~ ~ ~9
~ J
General Fund 010) ~'~~'~~~~
Par4.l. R.rrui~on
^ Funds the departmenf's operational and
management support
E Park maintenance
E Urban forestry
^ Administrative services
O Beginning in 2001, the department has experienced
cumulative budget reductions of $1.1M
2007 Budget = $3,845,000
• v~~y oF Bo(`CO~9
tY
Recreation Activi Fund (130) p;~;~ ~~
^ Funds recreation programs, services and
operations including:
E North, South, East Recreation Centers
r Scott Carpenter & Spruce Pools
~ Flatirons Golf
~ Boulder Reservoir
c Potterv Lab
6 Ballfields (maintenance and operarions)
r Recrearion Programs and Services (e.g., Gymnastics, Yoga, Dance,
EXPAND, YSI, Aquatics, Health/Wellness)
~ Includes $1.7M from General Fund
AGENDA ITEM # ~~f - ~ , PAGE ~~
y ~F sov<
~ 0~,9
~
~F H1St01'y '~~'~ ~
v..4. a A«.~~r.
^ Established in 2001 as a special revenue fund
^ The primary purpose was to provide flexibility
when revenues were impacted by weather or
changes in program and facility attendance
^ Fle~cibility is provided bv:
c Use of fund balance when revenues are less than
expenditures (2004-05)
~ Incrcase in fund balance when revenues are greater than
expenditures (2001-03)
~ Overall intent was to provide stability to recreation
programs and to minimize disruption of services during
periods of revenue volatility
y oF eo~~
c?~ ' ~
°~ ~
RAF Subsidy "`'~ ~
V~.W k Xr~o.~bw
^ General Fund support occurs via an annual
transfer or subsidy to the RAF
~ Calculation of subsidy is based on the differential
betvveen revenues and expenses in 2000
c Cost of doing business and availability of funds
escalates annually
5 Subsidy is adjusted annually based on a factor for
personnel (69% of the subsidy) and for non-personnel
(31% of the subsidy)
€ There is a goal to maintain a 10% minimum reserve
^ General Fund subsidy has not kept pace with
increasing costs of doing business
~DA ITEM # ~ V~~ ~ ~ , PAGE,~_
~~ ~F BOU~O
~ /~~9
RAF Trends ~~~`~~~
P~r4sl~ Racreatbn
^ Declining fund balance
^ As a percentage if the RAF budget, subsidy has
decreased
^ Increased operating expenses (e.g., utilities, fuel,
personnel, pool chemicals)
^ Increased competition from neighboring
communities and local private businesses
^ Limited ability to raise fees
pF BOVI
y
~F
~
~
~
~
V
RAF Balance
~
~'~'~~~
Par{u A Rea+wlon
~~
.~
~J
_
..
.
..
~ ~
"-~-
_- ~
---------~
_ ~os,oep-
- -ar
~~
~~
.
.
__. - -
~"~"
~ 57.0T3.000 ,
~~~' :,.on,ooo s,.aa~,ooo
sesa,ooa fae2.ooo
--
-
~oo - ---- -- -
.,
eeee~
-
-
C
7 fs~i.ooo aso.ooo
. . - --- -~- __------- - - --~---
- _
- ---
a I ~~~ ~
- -- -- _ - -
I . ~,~..~ 1
-
.s~.. ~
~008 3W, 1068 :WG 2~,0 p„ Z~,Z
[-:
Year
Projected Fund Balance -•-10%Reserve
A~~ ITEM # ~ V;' - ~' , PAGE /~'
~y pf BOV~
G~ ~~~?
R.AF Cost Recovery ~~'~~
Pnb ! Rene~Hw+
o The RAF cost recovery- expectation is
approximately 83%
^ The Core Services Business Model (CSBM) has
been approved as the department's cost recovery
methodology
^ Costs can be lowered to reduce the gap between
expenditures and revenues by:
r Adhering to the CSBM framevvotk that determines costs,
establishes fees and maintains the quality and quantity
of services and programs provided to the community
g Increasing General Fund support
~ Reducing the amount of subsid~ to programs and
services (e.g., "narro~v and deep" or "across the board"
Permanent Parks ~~°F B°°`~
~` /~`~~+
and Recreation Fund (230) ~~~`'~'~
~..~. ~,~..~
^ City Charter created the fund for capital improvements
^ Funding provided by property tax and Developmcnt Excise
Taxes (DET)
O Funds land acquisition, capital and permanent
improvements
^ Annual expenditures arc approved by the Parks and
Recreation Board (PRA.B)
^ Considerations for fund use include:
F Fund cannot be used for operations
~ Capital funds are available for patk and facility development
E New development requires increased maintenance funding
AGENDA ITEM # ~ V ~~ ~ ~ , PAGE /y
ypF BOpC
G~~ O~9
.25 Cent Sales Tax Fund (118) „~'g;~'~
^ Approved by voters in 1995
o Sales tax expires l2/31/2015
~ Ballot language specifications
e Bond foi Iand acquisition
^ Development of pack sites acquired with bond proceeds
^ Maintenance of pack sites developed with sales tax funds
^ Capital impcovement of recrearion facilities and pools
^ Renovation and refurbishment of exisring parks
^ Civic Center Complex, Historic and Cultural FaciGties
funding
r-•--~-~--~~
4~~ ~.~'~i~~~~..
~ ~:
~,
ypF BOp(
15 Cent Sales Tax Fund (117) `,~'%~~~
...~.~,..
^ Approved by voters in 1992
^ Sales taJC expires in 12/31/2012
~ Ballot language specifications
^ Dedicated sales ta~c foc multiple purposes, primarily
HHS, Environmental Affairs and Debt Setvice
^ Department's distribution is restricted to
maintenance of Stazio and Pleasant View Athletic
Complexes
2007 Budget = :$27b,Q@0
AGENDA ITEM # ~V l - ~i , PAGE ~
~i ~F ~V<
v~ ~~
Lottery Fund (111) ~%~~
Re4 L 4a~4w
'^ Distributed by State of Colorado to eligible entities
on a per capita basis
^ Funds are shared with Open Space/Mountain
Parks and Tributary Greenways
~ Curcent fund sharing agieemeni expires in 2008
^ Funds are restricted to conservation-related
expenditures
~ Stable annual revenue stream generates $900,000
per year
.~7'~ri~get = $~,~0;(~~0
,~ °F a°"~
Next Steps ~~%~~~
^ The department's master plan outlines ways to
achieve economic sustainability including:
^ Leveraging resources
^ Increasing department efficiencies
Use the CSBM
Restructure the RAF
r Evaluating alternative management or disposition of
land and facilities
^ Seeking additional cevenue streams
~A~A ITEM # ~ ~d - A , PAGE ~/