DocumentsStaff ReportSep 4, 2018Pages 3–5
Staff Report: West Shore Parks and Recreation Society 2018 Revised Budget
Staff report presenting the West Shore Parks & Recreation Society's 2018 revised budget which separates capital from operating and requests an additional $60,000 for consulting.
Key facts
- Recommendation options: approve revised budget (with $60,000 increase) or not approve
- Appendix 1 budget: Total revenues $10,824,561 and Total operating expenses $10,522,411 (with consultant increase)
- Net operating income with consultant increase: $302,150; Transfers to reserve: $(302,150)
- $60,000 requested increase for consultant expenses
- Notes that City of Langford requisition remains unchanged
Staff Report to Council
Date:
September 4, 2018
Department:
Administration
Subject:
West Shore Parks and Recreation Society 2018 Revised Budget
Background
The West Shore Parks and Recreation Society’s 2018 Budget was presented to Council on February 5, 2018 and it passed the following resolution;
That Council approve the 2018 West Shore Parks and Recreation Society budget.
The City of View Royal, District of Metchosin, and District of Highlands passed similar resolutions, the City of Colwood did not approve the budget due to the one time only operating deficit being funded from reserves.
Due to the budget not being passed unanimously the West Shore Parks and Recreation Society was forced to operate based on the prior year’s budget.
Commentary
The West Shore Parks and Recreation Society finance staff worked with the City of Colwood finance staff to review the 2018 budget and determine if it was correctly presented and if the use of reserve funds were being properly used for capital purposes.
Upon completion of the review the 2018 Budget was amended and passed by the Society’s Board of Directors.
The 2018 Revised Budget now separates capital expenditures from operating expenditures and all capital expenditures are funded from reserves. Based on this change, the $227, 851 reserve transfer is no longer a general operations use of the reserve fund but rather reserve funds are now directed towards capital expenditures. There is now a $300,000 operating surplus that is being transferred to reserves to fund capital expenditures, however this surplus is not sufficient to meet near and long-term capital expenditure needs.
In addition, the budget has been increased by $60,000 to engage a consultant to continue the review of the governance issues, operations, the Q Centre and a conduct cost benefit review of the various activities and programs offered at the West Shore Parks and Recreation Society facilities.
Financial Implications
Approval of the amended budget will result in the City of Langford’s requisition remaining the same as was previously approved by Council on February 5, 2018.
Legal Implications
Under the terms of the Operating Maintenance and Management Agreement between the owners and WSPRS, the annual budget must be approved unanimously. Failure to approve means the previous year’s budget carries in to the current year.
Options
That Council:
Approve the West Shore Parks and Recreation Society’s 2018 Revised Budget with the additional $60,000 in administrative expense for consulting attached as appendix 1;
OrNot Approve the West Shore Parks and Recreation Society’s 2018 Revised Budget attached as appendix 1;
Respectfully submitted,
Submitted by:
Darren Kiedyk, Chief Administrative Officer
Concurrence:
Matthew Baldwin, MCIP, RPP Director of Planning
Concurrence:
Cory Manton, Manager of Parks and Recreation
Concurrence:
Michelle Mahovlich, P.Eng, P.Geo, Director of Engineering
Concurrence:
Leah Stohmann, MCIP, RPP, Deputy Director of Planning
Concurrence:
Michael Dillabaugh, CPA, CA, Director of Finance
:dk
ARRENDIX 1
2018 BUDGET REQUEST / 2018 BUDGET REQUEST WITH INCREASED CONSULTANT EXPENSE
Revenue
| Item | 2018 BUDGET REQUEST | 2018 BUDGET REQUEST WITH INCREASED CONSULTANT EXPENSE |
|---|---|---|
| Requisitions | $4,947,539 | $4,947,539 |
| Sale of Service | $5,877,022 | $5,877,022 |
| Total Revenues | $10,824,561 | $10,824,561 |
Operating Expenses
| Item | 2018 BUDGET REQUEST | 2018 BUDGET REQUEST WITH INCREASED CONSULTANT EXPENSE |
|---|---|---|
| Administration | $492,635 | Administration* $552,635 |
| Finance | $726,256 | $726,256 |
| Food & Beverage | $601,499 | $601,499 |
| Human Resources | $176,365 | $176,365 |
| Maintenance | $3,343,291 | $3,343,291 |
| Marketing | $86,000 | $86,000 |
| Parks | $841,467 | $841,467 |
| Programs | $3,585,782 | $3,585,782 |
| Reception | $609,117 | $609,117 |
| Total Operating Expenses | $10,462,411 | $10,522,411 |
| Net Operating income | $362,150 | $302,150 |
| Transfers to Reserve | $(362,150) | $(302,150) |
| Capital Expenditures | $1,000,000 | $1,000,000 |
| Transfers from Reserve | $(1,000,000) | $(1,000,000) |
| Budget Surplus (Deficit) | $ | $0 |
- $60,000 request increase for consultant expenses
Reserve Summary (with increased consultant expense)
| Reserve | Opening Balance | Transfers In | Transfers Out | Ending Balance |
|---|---|---|---|---|
| Unfunded members' TCA (2018) | $ (890,884) | $ - | $ - | $ (890,884) |
| Equipment Replacement Reserve (2018) | $ 60,020 | $ 105,000 | $ (190,000) | $ (24,980) |
| Major Repair Reserve (2018) | $2,129,002 | $ 197.150 | $ (810.000) | $1.491,172 |
| Total Reserve Available (2018) | $1,298,138 | $ 302.150 | $ (1.000,000) | $575,308 |
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