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Home My WebLink AboutMinutes - 2011.04.20 - 39259OAKLAND COUNTY PARKS AND RECREATION COMMISSION BUDGET WORK SESSION MEETING April 20, 2011 Chairman Fisher called the meeting to order at 9:05 a.m. in the commission room of the Parks Commission's administration office. COMMISSION MEMBERS PRESENT: Chairman Gerald Fisher, Vice Chairman John McCulloch, Chairperson Emeritus Pecky D. Lewis, Jr., Robert Kostin, Christine Long, Gary McGillivray, John Scott, Eric Wilson COMMISSION MEMBERS ABSENT WITH NOTICE: Secretary J. David VanderVeen, Charles Palmer ALSO PRESENT: Parks and Recreation Daniel Stencil, Executive Officer Sue Wells, Manager — Parks & Rec. Operations Mike Donnellon, Chief -Parks Fac., Maint. & Ops. Terry Fields, Chief - Recreation Programs & Services Jim Dunleavy, Chief, Parks Ops. & Maint. — N. District Larry Gee, Chief, Parks Ops. & Maint. — S. District Phil Castonia, Business Development Rep. Karen Kohn, Supervisor — Administrative Services OC Fiscal Services Sheila Cox, Capital Improvement Coordinator Jeff Phelps, Supervisor II APPROVAL OF AGENDA: Moved by Mr. Lewis, supported by Mr. Scott to approve the agenda as presented. AYES: Fisher, Kostin, Lewis, McCulloch, McGillivray, Scott (6) NAYS: (0) Motion carried on a voice vote. PUBLIC COMMENTS: There were no comments or questions received by the public. FY 2012 BUDGET WORK SESSION: A. FY 2012, FY 2013, and FY 2014 Proposed Operating Budgets The triennial budget for FY 2012, 2013, and 2014 was presented, with property tax revenue adjustments based on recommendations from the county's Management and Budget Department utilizing current taxable value information contained in the 2010 Equalization Report and other economic forecasts: FY 2012 projected decrease (-9%), FY 2013 projected decrease (-3%), and FY 2014 projected decrease (-1 %). The recommended operating revenue budget is $22,953,000, down from the FY 2011 amended budget (-8.2%). The FY 2012 revenue budget includes: • Property taxes from the one -quarter millage; $11,500,000 (50.1%) • Delinquent Tax Prior Years; $30,000 (.13%) 4-1 (Commission Budget Work Session Meeting, April 20, 2011) • Income on Investments & Other Revenue; $255,525 (1.12%) • Charges for Services; $8,035,775 (35.1%) • Planned Use of Balance; $3,131,700 (13.64%) The recommended operating expense budget is $22,953,000; down from the FY 2011 amended budget (-8.2%). The FY 201� expense budget includes: • Salaries expense; $8,057,757 (35.11%) • Fringe Benefits expense; $2,835.158 (12.35%) • Contractual Services expense; $6,203,970 (27.03%) • Commodities expense; $1,012,030 (4.41%) • Depreciation expense; $3,131,700 (13.64%) • Internal Services expense; $1,712,385 (7.46%) The Operating "Stabilization/Reserve Fund" of $5,750,000 equates to approximately 25% of the FY 2012 operating budget. The Capital "Stabilization/Reserve Fund" is $7,000,000. The FY 2010 Actual Operating Budget had a total net income of $1,389,429. This amountwas incorporated in to the FY 2011 to FY 2014 Capital Improvement Program. The FY 2012 "Planned Use of Balance" revenue shown in the Operating Budget Revenue summaries is $3,131,700. This is the amount of non -cash depreciation included in the current fiscal year's expense which leaves cash available for the next fiscal year's Capital Improvement Program. A separate budget book details projects planned for the FY 2012, FY 2013, and FY 2014 Capital Improvement Program. Direction from Commission included: • Clarify whether a separate reserve fund can be established for the reserve funds, rather than designating funds as "earmarked." • Provide a monthly balance sheet. • Establish a formal policy that defines both stabilization funds, determines levels, and includes strategies for replenishing them when funds are used. Include consideration of bonding as a funding source to enhance the reserve fund. • Correlate capital improvement project management plan to correlate with capital improvement budget so Commission knows what funds are already committed and what will be brought to the Commission for approval. Ensure project recommendations indicate how much has already been committed/used and what is being proposed, in order for the Commission to make an informed decision on funding and how it will affect the reserve. B. FY 2012 Budget Reduction Highlights: Operational Efficiencies and Sharing of Resources Staff shared highlights of initiatives being undertaken to create operational efficiencies, i.e., collaborating on large purchases and taking advantage of early -bird ordering, staff reductions, resource sharing between parks, and cross training; plus plans for increasing revenue, i.e. garnering sponsorships for programs. C. FY 2012 Proposed Capital Equipment Budget Capital equipment expenditures have been increased from $18,956 in FY 2011 to $116,000 in FY 2012 and will be spent on replacement and new equipment. D. FY 2012-FY 2016 Proposed Capital Improvement Program Budget Plan Proposed funds for the FY 2012-FY 2014 Capital Improvement Program Budget Plan total $13,280,017. 4-2 (Commission Budget Work Session Meeting, April 20, 2011) E. FY 2012 Proposed Capital Improvement Program Project Management Plan/15 Yr. Projection Chief -Parks Facilities Maintenance and Development Mike Donnellon presented the Proposed CIP Program Project Management Plan with 15-year Projection, noting the projects were prioritized based on the following criteria: • Health Safety and Welfare • Regulatory Codes • Customer Service — Revenue Generation • Operational Savings • Customer Service - Upgrades Commission requested staff revise the document to indicate what funds have already been approved, what is still to come, and what effect it will have on the reserve; it should be presented at the next Executive Committee Meeting. Commission complimented staff on this new project plan. F. FY 2012 Proposed Major Maintenance — Building and Grounds/15 Yr. Projection Chief -Parks Facilities Maintenance and Development Mike Donnellon presented the Proposed Major Maintenance — Building and Grounds Plan with 15-year Projection, detailing staffs efforts to project life cycles of the park system's current structures along with taking advantage of purchasing opportunities in a collaborative manner. G. Pricing Policy Overview Manager— P & R Operations Sue Wells reviewed staffs efforts to establish and implement various fees based on prime time, shoulder season, partnerships, and cost of service. Fee increases are currently planned for golf during prime time, as well as Mobile Recreation units and nature center programs. The next Commission meeting will be at 9:00 a.m. on Wednesday, May 4, 2011 at the Fair Board Office of the Springfield Oaks Activity Center. Meeting was adjourned at 10:56 a.m. J. David VanderVeen, Secretary Karen S. Kohn CPS/CAP, Recording Secretary 4-3