6A - 2011 Parks and Recreation Department Operating Budget Udate
CITY OF BOULDER
PARKS AND RECREATION ADVISORY BOARD AGENDA ITEM
MEETING DATE: June 28, 2010
AGENDA TITLE: 2011 Parks and Recreation Department Operating Budget Update
PRESENTERS:
Kirk W. Kincannon, CPRP, Director of Parks and Recreation
Alice Guthrie, Recreation Superintendent
Abbie Poniatowski, Senior Business Manager
EXECUTIVE SUMMARY:
The Parks and Recreation Department 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 (Attachment A). The
department is designated as the fund manager for the .25 Cent Sales Tax Fund,
Recreation Activity Fund and Permanent Parks and Recreation Fund. The operating
budget is allocated for the department's divisions and administrative work units: Parks
and Planning division, Recreation division, Business and Financial Management work
unit and Policy and Information Services work unit.
In an effort to budget in uncertain economic times and make decisions that are financially
sustainable, staff is utilizing the following framework that is based on the city's business
plan and the department's master plan goals:
• Preserve health, safety and integrity of current infrastructure and facilities before
expanding and/or enhancing programs and facilities
• Consistently seek efficiency improvements in both operational and capital
investments - (e.g. work process changes and reducing resource consumption)
• Invest in facilities and programs that generate revenue that support valued
recreational opportunities in the Boulder community
ANALYSIS:
Budgetary Challenges
The major challenge that the City continued to face while developing its 2011 operating
budget is the uncertain impact from the economic downturn and resultant declining sales
and use tax collections. Sales and use tax estimates continue to be less than anticipated
and have been revised to reflect collection trends for 2010. The 2009 revenue decline
carried into 2010 resulting in reductions to the approved budget. As a result, operating
and capital budgets are being reduced to maintain the required fund balances between
revenues and expenditures.
AGENDA ITEM # VI. A. PAGE 1
Another financial impact that community is facing is upcoming ballot initiatives that will
be included as part of the November election. If these items are passed, the City could
potentially experience an estimated loss of $21.8M in revenue sources in 2011. The
proposals are summarized below:
• Statewide Proposition 101 - Reduces annual vehicle registration fees and vehicle
ownership taxes, eliminates state and local telecommunications charges and
lowers state income tax rate from 4.64% to 3.5%. If adopted, the City impact/loss
of funding will be approximately $5.8M.
• Constitutional Amendment 60 - Sunsets all property tax de-Brucings and requires
that future de-Brucings be re-voted on every four years. If adopted, the City
impact/loss of funding will be approximately $4.9M.
• Constitutional Amendment 61 - Prohibits any borrowing by state governments. If
adopted, the City impact/loss of funding based on current debt and refundings is
approximately $11.1M.
2011 Budget Process
To mitigate the increasing gap between revenue collections and operational expenses and
ensure financial sustainability, strategies recommended by the Blue Ribbon Commission
(BRC) II and in the Department's Recreation Program and Facilities Plan (RPFP) were
implemented as part of the 2011 budget process.
Blue Ribbon Commission H
BRC II recommended that the city manager and the city council adopt several key
strategies to facilitate the changes necessary to put the city on a path toward long-term
financial stability, closing the gap between revenues and expenditures. The final report,
including all of the commission's recommendations, is available online at:
www.bouldercolorado.gov > City Manager's Office > Revenue Stabilization/ Blue
Ribbon Commission > Blue Ribbon Commission - Phase II
The following recommendations were incorporated into the 2011 budget process:
• Budget Process - The City began utilizing Priority-based Budgeting (PBB), a
process used by municipalities to establish their larger community values, and
budget accordingly to those values, while providing flexibility in order to meet
the changing needs of the community. Programs were rated on the following
values:
• Accessible and connected community
• Economically vital community
• Healthy environment and community
• Inclusive and socially thriving community
• Safe community
Additional information on the City's PBB budget process is available online at:
www.bouldercolorado.gov > City Manager's Office > Priority-based Budgeting
AGENDA ITEM # VI. A. PAGE 2
• Performance Measurement - The City is using meaningful measures and feedback
on the attainment of city goals to allow the organization and the community to
have confidence that programs and services are being provided in the most
efficient manner possible. The Department is tracking the following measures to
inform operational decision-making:
Recreation Division Measures
Measure Measurement 2008 Data 2009 Data
Amount of City Total recreation $99: 1 $100: 1
funding devoted operating
to recreation expenditures per
operations capita
Amount of Total recreation $84: 1 $78: 1
revenue fees and charges
generated by revenue per
recreation users capita
Percent of total 85% 78%
City's ability to recreation
provide operating costs
recovered by
recreation
recreation user
services using fees and charges
revenues from Ratio of $4.50: $1 $4.55: $1
fees and charges
vs. tax support revenues from
fees and charges
to tax support
Total number of 48,957 44,072
Usage trends at rounds of golf
the City's golf Total number of 830 628
course tournaments
rounds
AGENDA ITEM # VI. A. PAGE 3
Parks and Planning Division iWeasures
Measure Measurement 2008 Data 2009 Data
City resources Total park 1 staff: 41 acres 1 staff. 41 acres
devoted to park maintenance
maintenance staff per acre of
(including maintained urban
athletic field park land
complexes)
City funding Total park $2350: 1 $2311: 1
devoted to park maintenance
maintenance expenditures per
(including park acre
athletic field
-complexes)
Providing a Ratio of trees 1: 1.75 1: 1
sustainable urban planted to trees
forest removed
Ratio of actual 185: 324 280: 275
trees planted to
trees removed
City resources Total park 1 staff. 41 acres 1 staff. 41 acres
devoted to park maintenance
maintenance staff per acre of
(including maintained urban
athletic field park land
complexes)
• Full Costing of Services and Programs - The total costs for all city services,
including subsidies, must be known so that informed budget decisions can be
made. Staff adopted this strategy by implementing service-based pricing, a
method in which fees, including codified fees, will be established based on the
defined cost to provide recreation services and the market rate, when appropriate.
Through ongoing analysis, the Department has identified the cost of providing
recreation services and operating facilities.
• Efficient Delivery of City Services - The City is looking for ways to reduce
duplication of services through centralization of administrative functions within
the city organization or partnering with the private sector, nonprofits or other
governments to provide services to increase efficiencies. The Department is
working with the City's Senior Services Division to identify efficiencies that may
be gained through consolidating facility management and recreation
programming. Additionally, the Department is developing a clearinghouse of
information about community recreation opportunities and will provide services
AGENDA ITEM # VI. A. PAGE 4
that meet the department's mission and sustainability goals.
Recreation Program and Facilities Plan
The current economic climate has caused a reduction in the City's sales and use tax
revenue collections, which resulted in a decline in the tax-supported funding to subsidize
recreation services in 2009 and 2010 by approximately $330,000. Additionally,
recreation revenues were impacted by weather during the summer of 2009 and the
revenues collected were $665,000 less than in 2008. The cost of providing recreation
services continues to increase, as the majority of expenses are personnel-related
(approximately 70%). If the department continues to offer the same level of services
with existing resources, there will be a significant gap between the sources and uses of
funding. Because this service delivery model is not financially sustainable, the
Department has established a decision-making framework to ensure it operates
strategically and effectively. The following strategies were approved as part of the
Recreation Program and Facilities Plan (RPFP) and are being utilized to address financial
challenges:
• Allocate resources (funding and staffing) appropriately within program areas;
• Continue work to define service costs and set fees that cover expenses;
• Determine which recreation services should be provided by the City and which
should be provided by others;
• Determine how best to provide defined services with available resources,
including partnerships and/or contracting services.
As part of its 2011 budget submission, the Department also requested approval for the
following RPFP recommendations including:
• Removing non-admission based fees from the Boulder Revised Code;
• Combining the categories of child and teen into a "youth" category;
• Increasing the fee schedule for codified daily admission fees to recreation
facilities (recreation centers, Boulder Reservoir, Flatirons Golf Course).
2010/2011 Budget Reductions
In an effort to be financially responsible in an uncertain economic time, the City's budget
guidelines did not allow for growth in non-personnel expenses. Departments were able to
budget for increases in standard personnel to accommodate increases in benefits.
Because the Department understands that revenues from tax-supported funding and
recreation user fees and charges are volatile, and that continuing the current uses of
funding is not sustainable, the department identified approximately $900,000 of
reductions. These savings benefit the General Fund, Recreation Activity Fund and .25
Cent Sales Tax Fund, which are most impacted by the volatile economic climate. At this
point, the reductions were achieved by the following actions:
• Eliminating vacant positions;
• Creating work process efficiencies and restructuring workgroups;
• Delaying some development/investments that would add ongoing operating and
maintenance costs.
AGENDA ITEM # VI. A. PAGE 5
These reductions will have minimal impacts to customers and the community; however,
if the economic downturn extends beyond current projections, additional reductions will
impact customers through reduced programs, reduced hours of service, and reductions in
current staffing. Staff will continue to identify expense reductions, as well as implement
the above-mentioned strategies to ensure that funding sources are financially sustainable.
2011 Budget Timeline
The following activities are key components of the citywide budget process:
June 18 Department Operating and Capital budgets due to City Manager
June 30 Meeting with City Manager on Parks and Recreation's 2011 budget submission
Jul 15 Planning Board meets to review 2011 - 2016 Capital Im rovement Program CIP
Jul 27 City Council Stud Session on 2011 Operating Budget and CIP
Mid-August 2011 Recommended Budget submitted to City Council
August 24 City Council Stud Sessions on 2011 budget
October 5 City Council - First reading of the 2011 budget
October 19 Cit Council - Second reading of the 2011 budget
NEXT STEPS:
Additional information regarding the Department's 2011 budget submission will be
presented at the July 26 PRAB business meeting. Staff welcomes input and questions
regarding the 2011 operating budget from the PP-A.B. As always, PRAB members are
encouraged to attend the community discussions over the next six months.
ATTACHMENTS:
A: 2010 Parks and Recreation Six Fund Chart
AGENDA ITEM # VI. A. PAGE 6
Parks and Recreation Funds - 2010 Recommended Budget - $24.732 Million
Established to finance and account for the basic Special revenue fund accounts for conservation Special revenue fund earmarked for specific Special revenue fund dedicated
for Parks and Special revenue fund to account for financial Capital improvement fund established to fund
governmental activities and functions trust fund proceeds. municipal purposes, including Pleasant View and Recreation. The sales tax was approved by voters operations
of recreation programs and facilities. acquisition, improvements, and development of
Stazio Complexes, in 1995 for a 20 year period, park and recreation facilities.
Interest$1853% F-sil nsfers
ntcrest 540 4% Other $150% A-, and $1,61715% Other $67923%
Induslon51031% Golf$1,65616%
"OEbiuCed"
lit Sports $1,54515% Propertyiar $218
7%
Rec Reservoi Recreation r $6518% Centers Property Tax $1,639
Coloradoloccory Sales Tax $3,724 dquadcs$7127% S2,004 19% DerelopmentEvdse 56%
General Fund $3,979 sal es Tax $6,207 Re ti,
Fu r,d $1,001 9696 Tares $257 9%
100% 100% 97% oera19 $2,069 19% Interest $148 5%
$3,979,000 $525,000 $304,763 $6,406,666 $10,557,772 $2,941,083
• Sales Tax • State of Colorado distributes revenue to entities • A portion of the Dedicated .15 Cent Sales Tax • Dedicated .25 Cent Sales Tax • Program Fees and
Facility Charges (85% in 2008) • Dedicated .9 mill from Property Tax
• Property Tax on a per capita basis • Parks and Recreation receives a portion of the • Fund specific to Parks and Recreation • Subsidy provided by the General
Fund (15% in • Development Excise Taxes
• Fees • Parks and Recreation receives a portion of the City of Boulder's $3.7 million. 2010) • Donations
• Other taxes City of Boulder's $1.04 million. • Fund specific to Parks and Recreation • Fund specific to Parks and Recreation
Debt5ervires$2,178 krnss and R&P $470 16% Transfers $79 3%
Urban Resources Habitat Restoration C P$640 9% 34% ivl;lcr SO9tev M,rir53934%
Admin$83321% $61716% $13125% ft&R $743 Ra1119d Ma'nr $~~6
11W, 6% Markeling$IBe r%
FAM $4507% rou1114514%
Spor6 $9109%
Res.-, $6981%
JP $1,620 55%
Playground Planning5135 276 Pqucs 51,07310%
Renovation $300 Capital Ba II fl eld ld Planninnd
min $3005% transfers $2474% Recr~aon [entas Ra
57% Refurbishment $94 Ma i ntena race $305 Operations $1,755 X04^ $2,13519% Construction $744
Parks $2,529 63% 18% 100% 2846 Vrograms $2,310 26%
21%
$3,978,600 $525,000 $304,763 $6,366,643 $10,643,238 $2,913,321
Parks Maintenance Maintenance and Capital Improvement Debt Service Facility Operations Acquisition and Development
• Playground and Shelter Maintenance • Natural Land Management & Maintenance • Pleasant View Athletic Complex Maintenance • Debt Service • North, East and South
Recreation Centers • Acquisition of Park Land
• Horticulture, Turf and Irrigation Maint. Capital Improvements • Stazio Ballfield Maintenance Operations and Maintenance • Spruce Pool and Scott Carpenter
Pool • Park Development/Construction
• Pearl St, Mall and Boulder Creek Path • Playground Renovation • Park Maintenance and Forestry • Flatirons Golf Course Renovation and Refurbishment
• Trash and Snow Removal • Art in the Park • Natural Lands Operations • Boulder Reservoir • Urban Parks R & R
• General Park Maintenance & Mgmt. • Ballfield Maintenance • Pottery Lab • Recreation R & R
• Urban Resources • Facility Major Maintenance (FAM) Programs Capital Improvements Program
Forestry Renovation and Replacement • Gymnastics, Yoga, Pilates and Dance Cost Allocation / Transfers to other Funds
• GIS /Asset Management • Urban Park and Recreation Facilities • Theraputic Recreation & Youth Services Initiative
Administrative Support Services Capital Improvements • Aquatics, Athletics, Pottery and Arts
• Office of the Director • Park Development • Wellness, Fitness and Weight Training
• Business and Financial Mgmt • Historic and Cultural Facilities • Camps
• Policy and Information Services • Civic Center Complex • Childcare
• PRAB Support
The General Fund allocation was established to Funding can be used for the acquisition, Funding is reserved for maintenance and Primarily used for debt service on
bonds to acquire Established to fund the operations of recreation Appropriations of the fund must be approved by
finance the basic functions of Parks and Recreation. development, and maintenance of new development of Pleasant View and Stazio athletic land, and secondarily on park
maint., urban park programs, services, and facilities the PRAB. The fund shall not be used for any
Note: The General Fund's allocation dedicated for conservation sites or for capital improvements or complexes. refurb., to construct or renovate rec. facilities, purpose
other than acquiring park land or
Recreation is now provided through an annual maintenance for recreational purposes on any pools, urban parks, historic/cultural facilities, civic permanently
improving park and recreation
transfer to the Recreation Activity Fund. public site. center complex, development of all categories of facilities.
parks, and new recreation facilities.
1.00% portion is a permanent sales tax. A 0.38% The funding from the state of Colorado Lottery is Sales tax does not have an expiration, but may be Sales tax expires on
12/31/2015. • Revenue volatility may occur due to inclement Funding is permanent according to city charter.
portion does not have an expiration, but may be stable. Lottery funds distributed to P & R, OSMP revisited on the ballot, if appropriate. Allocation of weather,
increased competition or declining usage.
revisited on the ballot, if appropriate. and Tributary Greenways, Parks and Recreation funding is subject to change • General Fund subsidy will be phased out
for 2011
6/23/2010