2016 MUNICIPAL BUDGET PRESENTATION
Draf aft t 20 2016 Bu 6 Budget get Over ervie view • 2016 Objectives • Breakdown of Municipal • TLC to me… Contribution • Common Concerns o Operating o Cost Recovery o Capital Equipment o Reserves Lifecycle • Detailed Budget o Infrastructure o Revenues • Summary o Expenses • TLC to you…
2016 16 Obj bjectiv ectives es St Stakeh eholde older Engagem gagemen ent Incr creased eased Uti tiliz izati tion on Enhanced focus on lifecycle and Expand program offerings where infrastructure management possible (WMC Revenue Review). (Governance Review). Enhanced custodial service (Custodial New membership categories (WMC Review, Customer Focus Groups and Revenue Review, Customer Feedback). WMC Revenue Review). Addition of Facility Support Staff Community Sport Partnership Program (Governance Review). (WMC Revenue Review). Customer service renovation (Customer Explore additional spaces in order to Focus Groups). deliver additional programs. Fitness renovations (Customer Collaborate with user groups to Feedback, WMC Revenue Review). maximize facility scheduling/usage. New recreation management software Explore new community partnerships in (CLASS replacement). order to enhance program/service delivery.
TLC to me… (M (Man anag agement) ement) TO Interests ests of Staff The Interests ests of Interests ests of Existi sting ng the Board Clients ts Municipali cipalities ties Interests ests of Pot oten enti tial Clients ts
Comm mmon on Conc ncerns erns
Cost t Rec ecover ery 75.5% Budgeted Cost Recovery • BUD UDGETED GETED COST T ACTU TUAL AL COST T YEAR AR RECOVE RE VERY RE RECOVE VERY 2013 81.86% 82.82% 2014 79.24% 79.85 2015 78.52% 81.28% 2016 75.5% -
COS OST T FACI CILIT ITY RECO ECOVER VERY 81.28% Trans nsAlta ta Tri Leisu sure re Centre ntre Leduc educ Communi ommunity ty Recreat reation ion 71% Centre ntre 101% Servu vus s Place 51.7% Collic licutt utt Centre ntre 49% City y of Ed Edmont monton on 100% Millenn enniu ium m Place 38% Dow w Cent ntenn nnial ial Centre ntre 55% Cold ld Lake e En Ener ergy gy Centre ntre Comm mmon onwealth ealth Comm mmun unit ity y 58% Recre reati tion on Centre ntre MacDonald onald Island and Park Park (Par Part 9 70% Com ompan any)
Cost t Rec ecover ery Part t 9 Company y vs. Mu Municipal pal Facilit ity TLC accounts ounts for the e follo lowi wing g expe penses es not typi pica call lly y in incur urred red by mun unic icip ipal ally ly ope perat ated ed fac acil ilit itie ies: s: g: $715,000 5,000 Finan ance/ e/Cor Corporat porate e Servic vices es Includin uding: uding: $195,000 95,000 Corporat orate e Communica mmunicati tions ons Including: : $42 420,00 0,000 Inf nfrastructur rastructure e Servic vices es inc ncludi luding ng: SE is $1 $1,3 ,330 30,0 ,000 00 TOTAL AL TLC C EX EXPEN PENSE
*Taken from City of Edmonton Recreation User Fee Policy
Res eser erves es • Expenses from reserves are presented and approved by the board and the municipalities. • Debits and credits to reserves result from operating surplus or deficit (there was an exception of a $118,117 municipal cash infusion in 2012). • In the 12 years of operations, the total net amount of budget surplus and deficits has totaled a surplus amount of $2,864,399. • 8 of 12 years resulted in a budget surplus. • 2007 resulted in a deficit due to costs associated with an organizational review and subsequent transition/severance expenses. Not including those amounts, 2007 would have also resulted in an operating surplus.
Audited Final Restricted & Expenses from YEAR Expense Description Unrestricted Reserves Fund 2003 $360,744 $139,572 Sport court, tables & chairs, Fitness Equipment and computers Video surveillance equipment, storage facility, entrance sign and pipe and 2004 $782,866 $182,133 drape Fitness equipment, Play Centre flooring, pool acoustic panels and arena 2005 $1,212,864 $228,984 curtain 2006 $1,635,245 $72,251 Fitness equipment, Volleyball nets and janitorial auto scrubbers Parking lot expansion ($250,000), stage, copier machines, dry change room 2007 $1,266,519 $457,302 renovation, arena board renovations, flex flooring and shower upgrades 2008 $1,533,726 $109,856 Frequency drives, spin bikes and shower upgrades Fitness equipment, expansion feasibility study, water chemical controller, 2009 $1,355,626 $143,974 and diving board Expansion schematic design, field divider curtain, Zamboni, fitness 2010 $641,219 $497,669 equipment and financial software 2011 $567,342 $206,578 Expansion schematic design part 2, e-mail server and fitness equipment 2012 $315,887 $86,388 Fitness equipment and server upgrades Fitness equipment, FAME software, building maintenance software, lighting 2013 $719,492 $244,354 upgrades and janitorial equipment Fitness equipment, concourse soft seating, end board systems in fields, 2014 $880,381 $324,952 window coverings, arena lighting, gym curtain, timer clocks and emergency showers.
2016 16 Bu Budget et Over ervi view Ope perat atin ing Operating revenues • $5,769,375 • Operating expenses $7,912,490 (including depreciation) • Operational Cost Recovery 75.5%
2016 16 Revenu enues es Earn rned ed Revenues enues Approved Ap d 2015 5 Bud udget Draft t 2016 6 Bud udge get Membe mberships, hips, Pas Passes ses 2,950,000 2,985,000 and Admiss ssions ions 1,014,439 1,018,098 Programs rams and d Services vices Facility ility Renta ntals ls and 956,285 992,040 Ev Events nts Admini inist stra rati tion on 743,298 774,237 (miscellane cellaneou ous) Tot otal al Revenues enues 5,664,022 5,769,375 (excl cluding ding mun unici icipal pal oper erat ating ing contr tribution ibution)
Revenue Breakdown by Object $3,500,000 $3,000,000 $2,985,000 $2,950,000 $2,808,683 $2,775,263 $1,868,115 $2,500,000 $1,549,031 $1,493,325 $1,341,158 $2,000,000 $1,016,106 $1,014,439 $1,018,098 $1,004,314 $992,040 $956,816 $956,285 $918,581 $874,151 $823,846 $1,500,000 $774,237 $743,298 $1,000,000 $500,000 $- Actual 2013 Actual 2014 Approved 2015 Draft 2016 Administration - misc. Municipal Contribution (operating) Programs Facility Rentals Member/Pass
Western ern Manag nagement ment Consult nsultants ants “Instead of focusing on attracting new customers, the focus for the TLC, moving forward, should be on retention of customers. The repercussions of losing market share are sizable and the potential for gaining market share is negligible.” (Revenue Review, 2014)
2016 16 Exp xpenses enses Expenses enses Ap Approved d 2015 5 Bud udget Draft t 2016 6 Bud udge get 4,649,767 4,440,792 Salaries ies and Bene nefits ts Materials rials, , Goods ods, 1,943,289 2,676,698 Sup upplies ies (Inc nc. . Depreci reciat ation) ion) 845,000 790,000 Utiliti ties es 5,000 5,000 Restr trict cted d Reser serves es 7,443,056 7,912,490 Tot otal al Ex Expense enses
Expens enses es by object ect $4,649,766 $4,440,792 $4,386,994 $4,157,485 $5,001,000 $4,501,000 $2,676,698 $4,001,000 $2,144,019 $3,501,000 $1,943,289 $1,610,776 $3,001,000 $1,126,171 $2,501,000 $845,000 $790,000 $782,189 $2,001,000 $1,501,000 $1,001,000 $5,000 $5,000 $501,000 $1,000 Actual 2013 Actual 2014 Approved Budget 2015 Draft Budget 2016 Salaries and Benefits Materials, Goods, Supplies (inc depreciation) Utilities Restricted Reserve
Rus ussell sell Far arme mer r & As & Associ sociat ates es Consul nsulting ting Ltd td. “Capacity to complete lifecycle and capital planning not within the current facility personnel expertise .” (Governance Review Recommendations, 2013)
Str trat ategic egic Steps teps Inc. “With an improved service model and adequate budget resources, custodial services can be expected to complement, rather than compromise the mission of the TransAlta Tri Leisure Centre.” (Custodial Services Review, 2013)
2016 6 Ca Capi pital al $321,517: Fitness equipment • Facility maintenance equipment • Technology upgrades • Indoor turf •
2016 6 Infras rastruct tructure ure $841,400: • Renovations customer service/reception • Renovations to fitness space Replace aquatic play structure • • Upgrade/refurbish electronic sign Structural repairs and upgrades •
Mun unicip cipal al Contributi tribution on Munic icip ipal l App pproved ed Budg dget et 2016 Contri ribution bution Budg dget et 2015 Ope peratin ing 1,549,031 1,868,115 Capi pital/li lifecy ecycl cle 250,700 321,517 Infrastr struc ucture ture 323,750 841,400 Total l Municipal pal 2,123 23,48 ,481 3,02 021,03 ,032 Contributi ibution on
Su Summ mmar ary • Operational cost recovery of 75.5% 5.5% • 21% 1% increase in municipal operating contribution representing $325,855 325,855 • Increase of 1% 1% in earned revenues (excludes municipal operating contribution) • Increase of 6% 6% in operating expenses
TLC to you… (Municipal Partner) What do you expect from the TLC?
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