2013FinalBudget

November 30, 2012

Prepared by
Terri Arnold, Director

Peggy Nelson, Office Manager

2013 Budget

Combined Starting Balance of all Funds$ 375,498

(M & O / Capital / Reserve / Project / Bond)

2013 Revenue$ 991,570

2013 Expenditures$ 977,135

2013 Ending Balance of all Funds$ 389,933

2013 Budget

Fund Summary

Maintenance and Operations Fund / Capital Fund / Reserve Fund / Project Fund / Bond Fund / Totals
Ending 2012/
Starting 2013 / $162,771 / $501 / $211,600 / $126 / $500 / $375,498
Revenue
Taxes - Levy / $616,250 / $616,250
Programming / $134,700 / $134,700
Concession/Vending / $200 / $200
Miscellaneous / $310 / $400 / $710
Other / $650 / $239,060 / $239,710
Revenue Total / $752,110 / $239,060 / $991,570
Revenue + Beginning Cash / $914,881 / $501 / $212,000 / $126 / $239,560 / $1,367,068
Expense
Administration / $459,673 / $459,673
Maintenance / $106,400 / $106,400
Programming / $116.118 / $116,118
Other Costs / $0 / $239,060 / $239,060
Interest / $ 1,000 / $1,000
Projects/Equipment / $ 29,462 / $25,422 / $54,884
Expense Total / $712,653 / $25,422 / $239,060 / $977,135
Total Profit or Loss / $202,228
Transfer
Transfer In / $25,422 / $25,422
Transfer Out / $25,422 / 0 / $25,422
Ending 2013/
Starting 2014 / $176,806 / $501 / $212,000 / $126 / $500 / $389,933

Maintenance & Operations (M&O) Fund

As the Park District looks ahead to 2013, there are a few key pointsthe Board of Park Commissionersand district staff should keep in mind as budget considerations are made:

  1. The district’s levy renewal will take place in November 2013.
  1. The district’s millage rate remains at $.15/per $1000 AV
  1. In 2010, the Maintenance Department absorbed stewardship of Lone, Goss and Deer Lakes without an operational fund increase.
  1. In 2010 - 2013 the Maintenance Department received capital funds for the construction of a new maintenance facility.
  1. In 2011, the Maintenance Department received capital equipment funds to purchase a new large turf area mower.
  1. The Facilities and Grounds Maintenance budget is $ 106,400 in 2013, a decrease of $18,655 from 2012.
  1. The following budget has been drafted with these issues in mind.
    2013 Starting Balance $162,771

2013 Revenue$752,110

Total M&O Funds Available$914,881

2013 M&O Expenditures$712,653
2013 Capital Allocation$ 25,422

2013Transfer to Reserve Fund$ 0

Total Expenditure Allocation$738,075

2013Carryover$176,806

Loan Debt History
2006 / 2007 / 2008 / 2009 / 2010 / 2011 / 2012 / 2013 / 2014 / 2015 / 2016 / 2017 / Total
Waterman Property / $28,377 / $ 28,377
Kubota Tractor / $ 8,024 / $ 8,024 / $ 4,012 / $ 20,060
Cushman Truckster / $ 5,175 / $ 5,175 / $ 5,175 / $ 2,587 / $ 18,112
Turfco Top Dresser / $ 3,601 / $ 3,601 / $ 3,601 / $ 3,601 / $ 1,800 / $ 16,204
New Holland Tractor / $ 1,811 / $ 3,622 / $ 3,622 / $ 3,622 / $ 3,622 / $ 1,811 / $ 18,110
Jacobsen Mower / $ 3,643 / $ 7,286 / $ 7,286 / $ 7,286 / $ 7,286 / $ 3,643 / $ 36,430
Dump Truck / $ 4,039 / $ 8,078 / $ 8,078 / $ 8,078 / $ 8,078 / $ 4,039 / $ 40,390
Rotary Mower / $10,381 / $ 10,381 / $ 10,381 / $ 10,381 / $ 10,381 / $ 51,905
Cushman Truckster / $ 2,820 / $ 5,639 / $ 5,639 / $ 5,639 / $ 5,639 / $ 2,820 / $ 28,197
Toro Mower / $ 1,188 / $ 19,782 / $ 19,782 / $19,782 / $19,782 / $19,782 / $ 100,098
Small Truck / $ 3,000 / $ 6,000 / $ 6,000 / $6,000 / $ 6,000 / $ 27,000
Cushman Replacement / $ 5,500 / $ 5,500 / $ 5,500 / $ 5,500 / $ 22,000
Annual Total / $50,631 / $ 31,747 / $ 42,155 / $ 38,375 / $ 36,806 / $ 29,552 / $21,247 / $ 28,421 / $34,102 / $ 31,282 / $ 31,282 / $ 31,282

M&O Revenue

  1. Carry Over Cash

When the District commissioners approve the budget as recommended, the carry over to2013is estimated to be $176,806.

  1. Taxes
    For the 2013 budget SWPRD will be allowed to collect $.15 per thousand dollars of assessed value based on the 2012 assessedproperty valuation of the district. The District expects to collect $616,250 in 2013. The District is entitled to a one percent (1%) increase or the IPD (Implicit Price Deflator) rate, whichever is less.

The District does not expect to receive additional revenue from Compensating Tax and just $50 from Timber Excise Tax, resulting in an estimated tax receipt of $616,250 in 2013.

  1. Program User Fees

Reviewing the district’s role in providing recreational programming to the South Whidbey community is always a goal during budget preparation time. This year, the Program Coordinator, Office Manager and Director worked together in reviewing each program line item and determining whether the program was viable financially, was there room for a program fee increase and whether it provided a benefit to the community, even if a program did not result in gained revenue.

The core of offering recreational programs is based on finding qualified and competent instructors. Once an instructor has been identified and a program offering is vetted, the Program Coordinator develops a fee schedule based on current contractor/district split, it is typically 75/25 or 80/20.

It is not prudent to increase program fees by a given percentage (5,10 or 15%), as each program has its own variable factors that make it reasonably priced and affordable for the community.

Again, the district needs to adopt policy regarding the level of district subsidy considered acceptable for the Program overall, as there are a few major special events that are free to the community but cost the district money through payroll, maintenance, and supplies, those programs are: Winter Festival; Children’s Day; and Concerts in the Park;

M&O Expenditures

Administration

The Administration budget will increase by $13,814 in 2013 due to increases in Health Insurance of $5673; Employee Retirement of $1859; Deferred Comp by $635; Accounting and Legal of $666; Professional Services by $500 (web master); Fire and Liability Insurance by $1,000; Auditing by $3500; and Postage by $100.

Maintenance
The Maintenance Department took the largest budget cuts for 2013, resulting in a $19,000 drop. A proposal to recoup maintenance budget funding has been approved by the board and it was agreed any additional revenue collected from building leases and concessions would be portioned back to the maintenance department to offset increased maintenance costs for those rentals.

The new maintenance facility is almost completed with the septic system design and install coming imminently in January. The budget reflects $15,000 dedicated to this project.

The Maintenance Supervisor has made it clear that continuing to take on properties without also increasing the maintenance budget is impossible. As Island County continues to minimize their parks maintenance funding, more pressure is being put on SWPRD to take on more.

There needs to be a serious discussion among staff and the board of commissioners regarding the levy renewal in 2013. Will there be two levies? One for the regular $.15 per 1000AV or will there be a second levy to cover maintenance of the lakes and other Island County properties?

Programs

Summer day camp enrollment was not as high as expected compared to past years. The newest trend in providing summer day camps is to create ‘specialty camps’ such as the Circus Camp, Tennis Camp, Sailing Camp, Water Sports Camp, etc. Swimming lessons continue to be very successful and fill up fast! A partnership between the SW Parks and Aquatics Foundation, the Park District, and Useless Bay Golf and Country Club created a wonderful swim lesson program that should be expanded in 2013. Archery continues to be a popular program for Elementary and Middle School aged kids. The drawback to this program is the fact there is no indoor space for continuing the program in inclement weather months. The Canine Nosework programs are a huge success and have resulted in $27,000 in revenue in 2012. This essentially has paid for the remodel of the large recreation room completed in 2009, and that space is perfect for a dog program with the rubber flooring and two exit doors.

Capital Fund

The starting and ending balance for the 2012 Capital Fund is anticipated to be $501. In addition to funds obligated to existing loans (see Loan Debt History Chart), the proposed budget includes funding for the completion of the new maintenance facility. The largest capital expense for 2013 related to the new Maintenance Building is design and installation of the septic system.

Reserve Fund

The Board’s directive is to revise the Reserve Fund strategy to 30% of the future year’s operating expenses instead of 30% of the previous year’s tax revenue. Whereby, the Board’s goal is to have four months of operating reserve in the fund at all times.

Summary Statement

The District’s financial picture heading into 2013 continues to look positive, although the district is experiencing a reduction for the third year in a row from reduced county real estate revenues, no drop in service or standards has occurred.

The District Compensation Plan is still an initiative being pursued by the board of commissioners. Depending on the salary bands set, there could be impacts to the 2013 and 2014 budgets.

The District Policy Handbook, specifically the basic sections covering personnel and district policies, is complete. The next section of work to be performed is the Risk Management section.

SWPRD is considered the premier park district on Whidbey Island – the outdoor spaces are well groomed and maintained, programs and activities for the community are plentiful, and the park district building continues to provide great spaces for programs and community activities.

The pursuit of rental agreements with Island County Public Health for the district administrative building’s vacant offices and with Tres Gringos for the concession building is a way of increasing revenue and restoring a portion of the maintenance budget in 2013.

And finally, the district is served well by the many continuing partnerships that have been developed with SW School District, SW Youth Soccer, SW Little League, SW Parks & Aquatics Foundation, The HUB After School Program, Girl Scouts, Boy Scouts, Island County Public Works, Island County Public Health, South Whidbey Fire Dept., Useless Bay Golf and Country Club, Island Athletic Club, SW Fly Fishing Club, SW Yacht Club,

The Lions Club, the Kiwanis Club, SW Children’s Center, SW Tennis Club, and more.

A hiring process for the new Parks & Recreation Director will be underway in December.

First the advertisement will go out to the local papers as well as NRPA & WRPA’s Career Center web sites. Terri has agreed to assist the Board with the initial screening of applicants based on criteria developed.

Respectfully submitted,

Terri Arnold

Director

SOUTH WHIDBEY PARKS & RECREATION DISTRICT

2013 OPERATIONS BUDGET

2013 Starting Balance$162,771

2013 Revenue$752,110

Total M&O Funds Available$914,881

2013 M&O Expenditures$712,653

2013 Capital Allocation$ 25,422

2013 Carryover $176,806

Donald V. WoodChair ______

James R. PorterVice-Chair

Matthew E. SimmsTreasurer

Mark HelpenstellSecretary

Joel GerlachCommissioner-at-Large

CAPITAL IMPROVEMENT BUDGET

2013

REVENUES

2013Beginning Balance$ 501

2013Transfers In$25,422

2013Total$ 25,922

EXPENDITURES

2013Loan Payments$25,422

2013Total Expenses$25,422

2013 ENDING BALANCE$ 501

Donald V. WoodChair ______

James R. PorterVice-Chair

Matthew E. SimmsTreasurer

Mark HelpenstellSecretary

Joel GerlachCommissioner-at-Large

BOND BUDGET

2013

STARTING BALANCE

2013 Beginning Balance$ 500

RECEIPTS

2013 Bond Receipts$239,060

DISBURSEMENTS

2013 Bond Disbursements$239,060

ENDING BALANCE

2013 Ending Balance $500

Donald V. WoodChair ______

James R. PorterVice-Chair

Matthew E. SimmsTreasurer

Mark HelpenstellSecretary

Joel GerlachCommissioner-at-large______

2013 Final Budget

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