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HomeMy WebLinkAboutAgenda Report - December 20, 2017 C-14TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM C'1 4 AGENDA TITLE: Adopt Resolution Transferring $308,225 from Parks, Recreation and Cultural Services Fund Balance to PRCS Operating Funds and Parks Capital and Appropriating Funds for Repairs, Maintenance, Contract Services and Marketing MEETING DATE: December 20, 2017 PREPARED BY: Parks, Recreation and Cultural Services Director RECOMMENDED ACTION Adopt resolution transferring $308,225 from Parks, Recreation and Cultural Services Fund Balance to PRCS Operating Funds and Parks Capital and appropriating funds for repairs, maintenance, contract services and marketing. BACKGROUND INFORMATION: In the aftermath of Measure R's defeat last year, reducing positions and frugal management of resources are the only ways for PRCS to obtain meaningful funds that can be reinvested in park facilities, whether for minor repairs and replacements or capital projects. The retirements of two superintendents, following by the consolidation of those into a new Deputy Director, resulted in approximately $200,000 in savings for Parks, Recreation and Cultural Services in Fiscal Year 2016/17. Net revenue, unaudited, was $309,897, for a PRCS fund balance of $697,288 as of June 30, 2017. In addition to personnel savings from retirements in FY 2016/17, PRCS staff took a conservative approach to spending on supplies and materials, as well as a resourceful approach to problem -solving, For instance, the Parks Division saved approximately $15,000 on contract service expenses by felling storm -damaged trees with in-house labor. At the time the current FY 2017/18 budget was adopted, the expectation was for a net difference (revenues less expenditures) of a loss of $162,948 for the PRCS fund in FY 2016/17, compared to the unaudited net revenue shown above. This result included transfers out to capital projects. Table 1 shows that the PRCS fund balance is currently projected to be $472,846 higher than presented to Council with the FY 2017/18 budget. Table 1. PRCS FY 2016/17 Year End Results The FY 2017/18 budget allocated $485,000 in capital reserves to new projects. PRCS also received an $883,000 State grant for the Blakely Park sports fields overhaul and $150,000 in CDBG funds for the Enze Pool renovations. The Parks Division Tacks the fiscal resources to take on new projects within the current budget. APPROVED: 104Wiret Ste• -n Schw: •auer, City Manager FY 2016/17 Year End Estimate FY 2016/17 Unaudited Actuals Revenue $6,256,350 $6,293,022 Expenditures $6,419,298 $5,983,125 Revenue Less Expenditures ($162,948) $309,897 PRCS Fund Balance $224,442 $697,288 The FY 2017/18 budget allocated $485,000 in capital reserves to new projects. PRCS also received an $883,000 State grant for the Blakely Park sports fields overhaul and $150,000 in CDBG funds for the Enze Pool renovations. The Parks Division Tacks the fiscal resources to take on new projects within the current budget. APPROVED: 104Wiret Ste• -n Schw: •auer, City Manager Given the financial reality PRCS faces in the current and coming years, PRCS requests the Council approve the use of unanticipated fund balance for one-time expenses. Expenses include supply replacement and contract services for various maintenance and repairs to extend the life of PRCS facilities, with approximately 22 percent going toward capital projects, as shown in Table 2. Additionally, PRCS is requesting Council consider authorizing strategic ongoing costs including a part-time graphics design/marketing position as shown in Table 3. The part time graphic design position is budgeted at $22,000 in FY 2017/18, representing equipment expenses and six months' wages. It is anticipated there will be ongoing costs for these services, in the amount of $36,000 annually beginning in FY 2018/19. The position is needed so that PRCS materials such as fliers, signs, the web page and activity guide, have easily understood messages, are visually appealing and consistent for ease of customer use as well as increased participation and registration. The City Council was asked to approve a higher spending amount on November 1, which included appropriating $27,500 for activity guide production and a one-time transfer of $46,775 in uncollected administrative costs from the Art in Public Places program, in accordance with the Public Art Policy. The Council delayed action on all but the activity guide expenditure. That public art fund transfer has been removed from this proposed action and focuses exclusively on the unspent PRCS fund balance. More details are shown below. With the exception of a proposed transfer to Parks Capital, any unspent funds will roll toward the fund balance at the end of FY 2017/18. Table 2. Recommended One -Time Expenses Account Amount Description 20072202.72499 Parks/Gen. Maintenance/ Misc. Contract Services $100,000 Tree trimming, vandalism repairs, Lodi Lake maintenance, fencing, carpentry, Emerson Park paver repair, etc. 20072202.72534 Parks/Gen. Maintenance/Repairs to Buildings $15,000 Repairs to Lodi Lake entry booth, park restroom fixtures 20072202.72355 Parks/Gen. Maintenance/General Supplies $16,500 Parks facility furniture 20072202.72352 Parks/Gen. Maintenance/Special Dept. Materials $32,000 Playground Fibar, skate park ramp material, park signs 20072204.72531 Parks/Gen. Maintenance/ Repairs to Machines/Equip. $13,000 Repairs, renovations for pontoon tour boat and utility boat at Lodi Lake Park 20073402.72355 Recreation/Aquatics/General Supplies $5,000 Hutchins Street Square pool supplies 20071300.72355 Hutchins Street Square/Theater/General Supplies $25,000 Theater equipment replacement 20071402.72499 Hutchins Street Square/Maintenance/Misc. Contract Services $10,000 Various safety inspections 43299000.77020 Parks Capital $66,725 New finish for Armory gym floor, repairs to park facilities and Hutchins Street Square 20070001.72359 PRCS Administration/Small Tools and Equipment $4,000 Computer equipment/materials to support part-time marketing/graphic designer 20071200.72355 Hutchins Street Square/Rentals/General Supplies $3,000 Collateral materials for HSS rental marketing Total appropriation for one-time costs $290,225 Table 3. Recommended Ongoing Expenses Account _ 20070001.71003 PRCS Administration/Part-time wages Total Ongoing Expenses FISCAL IMPACT: Amount Description $18,000 Part-time marketing/graphic designer, half of FY 2017/18; $36,000 in future years. $18,000 The expenditure plan as proposed will improve public and employee safety and comfort, and reduce City liability due to aging and potentially hazardous infrastructure. There is also a potential for increased revenue due to enhanced marketing. The source of the $308,225 in FY 2017/18 is one-time FY 2016/17 savings. Financial best practice recommends spending one-time resources on one- time expenditures. The recommended actions include $290,225 in one-time expenditures and $18,000 in ongoing operational expenses in FY 2017/18. Ongoing expenses are expected to increase to $36,000 in FY 2018/19. Approving the expenditure of fund balance resources recommended in this report would still leave a higher than originally anticipated projected fund balance in the PRCS fund at FY 2017/18 as shown in Table 4. Table 4. FY 2017/18 PRCS Fund Balance Estimates Adopted Budget Before Proposed Expenditure Plan Net New Expenditures After Approval of Expenditure Plan Increase From Adopted Budget $212,722 $633,788 ($308,225) $325,563 $112,841 FUNDING AVAILABLE: Funding is available as follows: PRCS (Fund 200) fund balance $308,225 Transfers are detailed on the attached resolution. Staff recommends Council appropriate the funds (after the transfer is complete) as shown in Table 2 and Table 3. C Andrew Keys Deputy City Manager/Internal Services Manager JH:tI cc: City Attorney Recre.tian and Cultural Services Director RESOLUTION NO. 2017-229 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE TRANSFER OF $308,225 FROM PARKS, RECREATION AND CULTURAL SERVICES FUND BALANCE TO PRCS OPERATING FUNDS AND PARKS CAPITAL; AND FURTHER APPROPRIATING FUNDS FOR REPAIRS, MAINTENANCE, CONTRACT SERVICES, AND MARKETING WHEREAS, the retirements of two superintendents, followed by the consolidation of those positions into a new Deputy Director position, resulted in approximately $200,000 in savings for Parks, Recreation and Cultural Services in Fiscal Year 2016/17. Net revenue, unaudited was $335,725 for a PRCS fund balance of $697,288 as of June 30, 2017; and WHEREAS, PRCS asks the City Council to support the following use of $308,225, as follows: Account Amount Description 20072202.72499 Parks/Gen. Maintenance/ Misc. Contract Services 20072202.72534 Parks/Gen. Maintenance/Repairs to Buildings $100,000 Tree trimming, vandalism repairs, Lodi Lake maintenance, fencing, carpentry, Emerson Park paver repair, etc. $15,000 Repairs to Lodi Lake entry booth, park restroom fixtures 20072202.72355 Parks/Gen. Maintenance/General Supplies 20072202.72352 Parks/Gen. Maintenance/Special Dept. Materials $16,500 Parks facility furniture $32,000 Playground Fibar, skate park ramp material, park signs 20072204.72531 Parks/Gen. Maintenance/ Repairs to Machines/Equip. $13,000 Repairs, renovations for two PRCS boats at Lodi Lake Park 20073402.72355 Recreation/Aquatics/General Supplies $5,000 Hutchins Street Square pool supplies 20071300.72355 Hutchins Street Square/Theater/General Supplies $25,000 Theater equipment replacement 20071402.72499 Hutchins Street Square/Maintenance/Misc. Contract Services 43299000.77020 Parks Capital Various safety inspections $10,000 $66,725 New finish for Armory gym floor, repairs to park facilities and Hutchins Street Square 20070001.72359 PRCS Administration/Small Tools and Equipment $4,000 20071200.72355 Hutchins Street Square/Rentals/General Supplies $3,000 Computer equipment/materials to support part-time marketing/graphic designer Collateral materials for HSS rental marketing 20070001.71003 PRCS Administration/Part-time wages $18,000 Part-time marketing/graphic designer, half of FY 2017/18; $36,000 in future years. Total Expenses $308,225 NOW THEREFORE BE IT RESOLVED that the Lodi City Council does hereby: 1.) Approve the transfer of $308,225 from Parks, Recreation and Cultural Services fund balance (Fund 200) to PRCS Operating Funds and Parks Capital; and 2.) Appropriates funds for repairs, maintenance, contract services and marketing, as outlined in the table above. Dated: December 20, 2017 • hereby certify that Resolution No. 2017-229 was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 20, 2017, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, and Mounce NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mayor Nakanishi ABSTAIN: COUNCIL MEMBERS — None 2017-229 -iy\x:r.AAa.AA NIFEM. FERRAIOLO ity Clerk