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Home My WebLink About8.2 FY 08-09 Prelim.Budget G~~~ OF DpB~~ 19 ~ ~ 82 AGENDA STATEMENT PARKS AND COMMUNITY SERVICES COMMISSION MEETING DATE: June 16, 2008 SUBJECT: Fiscal Year 2008-2009 Preliminary Budget, Parks & Community Services Report by Diane Lowart, Parks & Communiry Services Director ATTACHMENTS: Budget Document provided under senarate cover COPIES AVAILABLE AT RECOMMENDATION: Receive report DUBLIN CITY HALL 100 CIVIC PLAZA, DUBLIN 925-833-6645 FINANCIAL STATEMENT: Total Recommended Budget $3,979,955 Estimated Revenue 1 599 844 Net Cost to City $2,384,611 DESCRIPTION: On June 26, 2008 the City Council will conduct a special meeting for the purpose of adopting the Fiscal Yeaz 2008-2009 Preliminary Budget and Financial Plan and the Proposed Five-Yeaz Capital Improvement Program, 2002-2013. Staff has prepared a summary of the proposed Parks and Coxnmunity Services budget for the Commission. The Parks and Community Services budget provides for the planning and administration of a comprehensive program of recreational opportunities for all ages in the following budget areas: ¦ Recreation Administration ¦ Community Gymnasium Operations ¦ Community Facility Operations ¦ Special Events ¦ Playgrounds ¦ Senior Center Operations and Programs ¦ Teens ¦ Leisure Enrichment Classes ¦ Youth and Adult Sports ¦ Swim Center Operations and Programs The Parks and Community Services budget also provides for the management and operation of the Dublin Senior Center, Dublin Swim Center, Stager Community Gymnasium, Emerald Glen Activity Center, and the new Shannon Community Center. The budget also provides funding to coordinate use of the Dublin Public Library Community Room, Dublin Civic Center Regional Meeting Room and Council Chambers, Old St. Raymond's Church, City sports fields, the Emerald Glen Group Picnic area, and Dublin Unified School District athletic fields and facilities. COPIES TO: ITEM NO.: 8.2 G:U'ARKS C0MMISSI0N\AGNDSTMT\2008\6-16 Preliminary Budget.doc FISCAL YEAR 2007-2008 ESTIMATED BUDGET The total estimated expenditures for Fiscal Year 2007-2008 are $3,612,661 which is $79,117 (2.1%) under budget. This is primarily due to full-time staff vacancies in the sports and teens programs. There were also significant savings for janitorial services due to the new agreement that began July 1, 2007. The Fiscal Year 2007-2008 expenditures will be partially offset by $1,555,925 in revenue, which exceeds the budget by $65,709 (4.4%). The additional revenue is primarily due to increased registration for After School Recreation, Fun in the Sun, Camp Emerald Glen, Shamrock Preschool, Swim Lessons and Youth Sports. There was also an increase in revenue for special events and sponsorships. The resulting net cost to the City for Fiscal Year 2007-2008 is estimated to be $2,056,736 which is a savings of $144,826 (6.6%) compared to the adopted budget. FISCAL YEAR 2008-2009 PROPOSED BUDGET The proposed current service level budget for Fiscal Year 2008-2009 is $3,871,021. It is anticipated the expenditures will be partially offset by $1,602,724 in revenue, resulting in a net cost to the City of $2,268,297. This is an increase of 10.3% over the estimated net cost for Fiscal Year 2007-2008, but only 3.1% over the Fiscal Year 2007-2008 budget. The additional cost is primarily due to increased utility and personnel costs, and the new operating costs associated with the new Shannon Community Center. In addition to the Current Service Level, six Higher Service Levels (HSL) have been prepared. These Higher Service Levels are in response to 2008-2009 High Priority Goals of the City Council. HSL 41 establishes a Youth Fee Assistance Program. It increases a Recreation Technician from three- quarter time to full-time status to assist with securing private donations, conducting fundraising campaigns and processing requests for fee assistance. HSL #1 would cost $20,135. HSL #2 provides the financial assistance requested by the Dublin Unified School District for Fiscal Year 2008-2009. This HSL eliminates the District's annual reimbursement payments far the Dublin Swim Center; increases the City's share of the operational costs of the Stager Community Gymnasium; and funds one full-time Groundskeeper. The total expenditures for HSL #2 are $54,805 and the reduction to revenues is $22,330 resulting in a net cost of $77,135. HSL #3 accomplishes a high priority City Council objective to develop a new suininer nature day camp program to meet the LEED certification requirements for the new Shannon Community Center. The new "Glen the Guide Nature Camp" is an environmental education program that would begin in summer 2009. Staff estimates the program will break even in its first full-year of operation. However, for Fiscal Year 2008-2009, Staff estimates a net gain of $2,213, because only two of the eight weeks of camp will be completed by the end of the fiscal year. HSL #4 increases the Preschool Instructor from 36 to 40 hours per week. This will provide enough time for the Preschool Instructor to be consistently in the classroom each day and provide more time to administer the growing program. The total cost of HSL #4 is $3,077. HSL #5 accomplishes a high priority City Council objective by implementing a volunteer carpool program for transportation to and from the Senior Center. The total cost of HSL 45 is $9,474. HSL #6 accomplishes another high priority City Council objective by expanding use of the City website to promote Senior Center events and activities. The total cost of HSL #6 is $8,706. 2 of 3 The total recommended Parks and Community Services budget for Fiscal Year 2008-2009 is $3,979,955. This is partially offset by $1,599,844 in revenue, resulting in a net cost to the City of $2,384,611. LONG TERM FINANCIAL PROSPECTS The City of Dublin Fiscal Year 2008 - 2009 Preliminary Budget is a balanced budget. However, for the first time in a number of years, the City's General Fund Revenues have become stagnant. These revenues are projected to be less in Fiscal Year 2007-2008 and 2008-2009 than they were in Fiscal Year 2006- 2007. Sales tax, which has been the bedrock of the City's financial success since incorporation, is projected to be lower than the City's actual sales tax received in Fiscal Year 2003-2004. Based on forecasts being analyzed by Staff, it appears the City's sales tax revenues will not increase significantly until Fiscal Year 2010-2011 at which time two major retail projects will be completed. In the meantime, the City's costs for services will increase as the City's population grows and the cost of maintaining new infrastructure such as the Shannon Community Center, Dublin Historic Park, Fallon Sports Park, and new roads are added to the City's Operating Budget. As the City Manager stated in his budget transmittal to the City Council, the City anticipates a very sma11 year-end surplus ($64,565) at the end of Fiscal Year 2008-2009. On the bright side, the City is funding in Fiscal Year 2008-2009 nearly $4.2 million in Capital Projects from its General Fund (including expansion of the Historic Park and installation of artificial turf at Fallon Sports Park.) The City's ability to utilize its General Fund to undertake Capital Projects in Fiscal Year 2009-2010 and 2010-2011, and possibly future years will significantly diminish, if not disappear. Therefore, the City Manager recommends the City Council cautiously examines its ability to fiscally sustain new programs before they are added, as well as its ability to fund the operation and maintenance of new Capital Projects even though funds may be available for construction in the future. RECOMMENDATION: Staff recommends that the Parks and Community Services Commission receive the report. 3 of 3