HomeMy WebLinkAboutMinutes - 2017.03.15 - 39356OAKLAND COUNTY PARKS AND RECREATION COMMISSION
BUDGET WORK SESSION MEETING
March 15, 2017
Chairman Fisher called the meeting to order at 1 p.m. in the commission room of the Oakland County Parks
and Recreation Commission's administration office.
COMMISSION MEMBERS PRESENT:
Chairman Gerald Fisher, Vice Chairman J. David VanderVeen, A. David Baumhart III, Hugh D. Crawford,
Christine Long, Gary McGillivray
COMMISSION MEMBERS ABSENT WITH NOTICE:
Robert Kostin, Secretary Ron Fowkes, Jim Nash
COMMISSION MEMBERS ABSENT WITHOUT NOTICE:
David W. Potts
ALSO PRESENT:
Parks and Recreation Daniel Stencil, Executive Officer
Sue Wells, Manager — Parks & Rec. Operations
Mike Donnellon, Chief -Parks Fac., Maint. & Ops.
Brandy Boyd, Chief - Recreation Programs & Services
Jim Dunleavy, Chief, Parks Ops. & Maint. — N. District
Tom Hughes, Chief, Parks Ops. & Maint. — S. District
Phil Castonia, Chief of Business Operations
OC Fiscal Services Jeff Phelps, Parks and Recreation Fiscal Coordinator
APPROVAL OF AGENDA:
Moved by Mr. VanderVeen, supported by Mr. McGillivray to approve the agenda as
presented.
AYES: Baumhart, Crawford, Fisher, Long, McGillivray, VanderVeen (6)
NAYS: (0)
Motion carried on a voice vote.
PUBLIC COMMENTS:
There were no comments or questions from the public.
REGULAR AGENDA:
Proposed FY 2018 — 2020 OCPR Budget Process/Schedule
Executive Officer Dan Stencil reviewed the proposed FY 2018 — 2020 Oakland County Parks and Recreation
(OCPR) budget process and schedule. These dates coincide with the County of Oakland's fiscal years and its
triennial budget process.
FY 2018 — 2020 Budget Projections (with Assumptions)
The FY2018 Illustrative Statement of Net Position — Unrestricted, is as follows:
(Commission Budget Work Session Meeting, March 15, 2017)
• Operating Reserve $ 5,750,000
• Capital Reserve $ 14,483,085
• Capital Equipment $ 400,000
• Planned Use of Balance $ 1,490,322
• Capital Improvement Plan (Active & Complete) $ 1,500,613
• Total Net Position as of 9/30/16 $ 23,624,020
Due to aging capital equipment, the target amount for the next few fiscal years will be increased to $400,000
annually.
The recommended revenue budget for FY 2018 is $26,718,087; increased from the FY 2017 amended budget
by 4.38%. Revenues from Property Tax Levy represent a 3.67% increase from the FY2017 Amended Budget
based on taxable value. Budgets for FY 2018 through FY 2020 were developed from the FY 2016 Actuals and
the FY 2017 budget. Property tax revenue adjustments were based on recommendations from the County's
Management & Budget Department utilizing the current taxable value information contained in the 2016
Equalization Report and other economic forecasts. Revisions to this forecast are expected in April 2017.
Assumptions include:
• FY 2018 projected increase 3.75%
• FY 2019 projected increase 3.75%
• FY 2019 projected increase to be determined
The FY 2018 revenue budget includes:
• Property taxes from the one -quarter Millage $ 13,342,800 (49.94%)
• Charges for Services $ 10,950,765 (40.99%)
• Income on Investments & Other Revenue $ 934,200 (3,50%)
• Planned Use of Balance $ 1,490,322 (5.58%)
$ 26,718,087
The Charges for Services total revenue increased $733,300 compared to the FY 2017 amended budget to
bring the budget in line with historical and seasonal fluctuations, and includes grill room operations and the
Off -Road Vehicle Park. The Planned Use of Fund Balance revenue decreased $655,363 in response to
overall operating decreases and net operating revenue gains.
The recommended operating expense budget for FY 2018 $26,718,087; an increase from the FY 2017
amended budget by 4.38%.
The FY 2018 expense budget includes:
• Salaries
$
9,650,064
(36.12%)
• Fringe Benefits
$
3,203,729
(11.99%)
• Contractual Services
$
6,986,752
(26.15%)
• Commodities
$
1,599,814
(5.99%)
• Transfers Out
$
190,000
(0.71 %)
• Depreciation
$
3,364,650
(12.59%)
• Internal Services
$
1,723,078
(6.45%)
$ 26,718,087
The FY2018-FY2020 budget includes the proposed Groveland Oaks Off -Road Vehicle Park; however, the
budget center will be removed prior to submission with the County Executive Recommended Budget until a
signed lease is completed. The proposed FY2018 budget of $26,718,087 is an increase of $1,443,124 from
the previously adopted FY2018 plan of $25,274,963. The FY2018 recommended expense budget includes the
self operation of the grill room at Lyon and White Lake Oaks, $376,691; ORV park $503,148; and provides for
staffing updates, indirect cost, golf carts, security expense, vehicle purchases, and maintenance increases. As
a result of these expense increases, Planned Use of Balance is increased from the FY2018 Adopted Budget
plan amount of $1,007,898 by $482,424, to a revised budget of $1,490,322. Of this amount, $538,483 will fund
(Commission Budget Work Session Meeting, March 15, 2017)
the Independence Safety Path project. Additional changes to the FY2019 and FY2020 Recommended Budget
may occur once the County Executive announces the FY2018-FY2020 budget parameters on March 20, 2017.
REVISED SECTION: Chairman Fisher reported that members of the Executive Committee had
discussed a spending plan to be considered by the Commission, having as its objective the
attempt to maintain our parks in a first class condition while at the same time remaining within our
budget policy. Specifically, subject to Jeff Phelps determining that it would be feasible to remain
within the Unrestricted Net Position Policy over the next several years considering all projected
circumstances, the Commission might discuss annually spending an additional $750,000 on
capital improvement projects and $250,000 on capital maintenance projects, with staff to provide a
variety of projects from which the Commission could make choices. Again, the goal would not
necessarily be to achieve the normal objectives, but predominantly to maintain our system in first
class condition in those areas enjoyed most by the public.
Budget Account Sub Groupings & Budget Line Item Classifications and Definitions
Chief of Business Operations Phil Castonia briefly reviewed the budget line item classifications and definitions,
indicating the information is also provided as a reference tool.
Proposed FY 2018 Organizational Staffing Update
Manager — P & R Operations Sue wells reviewed the proposed FY 2018 Budgeted Position Locations, noting
the following details:
• As the number of full-time employees has decreased, the number of part-time employees has
increased
• Average part-time hours vary by facility
• All part-time staff are non -eligible, receiving no benefits except 4% towards retirement
Chairman Fisher indicated his preference to have the Facilities Maintenance Development section report
directly to the Executive Officer.
Proposed FY 2018 Individual Operating Budget Centers Review
Chief of Business Operations Phil Castonia, Chief — Park Operations and Maintenance, South District Tom
Hughes, and Chief — Park Operations and Maintenance, North District Jim Dunleavy reviewed the facility
budget centers. Detailed discussion included:
• Contracted Services
• Irrigation expense for Red Oaks Golf Course
• Changes in revenues due to contract transition at Addison Oaks Buhl Estate and Glen Oaks
• Carpet replacement expenditure planned at Lyon Oaks in October, 2017
• Concession/catering/grill room revenues
• Need for increased parking at Orion Oaks Dog Park
• Proposed archery program and other alternative uses at Springfield Oaks
Staff will follow up with information on our status as a customer of Madison Heights for water usage and the
revenues from cricket at Lyon Oaks. A depreciation schedule will also be reviewed at the April budget session.
The next Commission meeting will be at 1 p.m. on Wednesday, April 5, 2017 in the commission room of the
Oakland County Parks and Recreation Commission's administration office.
Meeting was adjourned at 2:56 p.m.
R�n FbWkes, Secretary Laurie Cooper, Recording Secretary