Capital Budgets Parks and Recreation Special Park Board Meeting - PowerPoint PPT Presentation

2019 Operating & Capital Budgets Parks and Recreation Special Park Board Meeting Monday, December 10, 2018

Presentation to the Park Board - Purpose To seek the Board’s approval of the 2019 Operating and Capital Budgets as submitted by staff.

Parks and Recreation Budget - Overview  2019 Operating Budget  2019 Capital Budget  Recommendation 28

2019 Park Board Operating Budget 29

Building the Park Board Operating Budget Budget Approach  The 2019 Operating Budget begins with the 2018 budget as a base  Focus on service delivery and outcomes  Encompasses ongoing Board direction and staff work plans Goals  Continue providing valued services as efficiently as possible  Ensure alignment with Park Board priorities  Identify new sources of revenue to fund new initiatives  Seek productivity improvements 30

2019 Park Board Operating Budget - Key Messages  The 2019 Operating budget provides funded expenditures of $128.1M, an increase of $5.7M or 4.4% • Includes $1.6M of new investment areas • Adjustments to user fees focused on affordability, average increase of 0.9% • No major productivity cuts or service level reductions were required Affordability and continued excellence in service provision were a key focus in  preparing this budget - balancing the existing priorities of Board, Staff, and public feedback  Staff are confident and in support of the Park Board budget that has been prepared. 31

Building the Park Board 2019 Operating Budget Impact on tax-based Revenue Expense Funding 2018 Restated* Budget $59.1 M $122.4 M $63.3 M Revenue Increases – Rate/Volume $1.6 M $0.5 M ($1.1 M) Fixed Cost Increases and Adjustments ($0.3 M) $2.8 M $3.1 M New Services/Programs $1.1 M $2.0 M $0.8 M Operating Impact of Capital Projects $0.0 M $0.5 M $0.5 M Productivity Savings Initiatives $0.0 M ($0.1 M) ($0.1 M) 2019 Proposed Budget $61.6 M $128.1 M $66.5 M Net Change $2.5 M $5.7 M $3.2 M 32 * The 2018 budget has been restated to make the 2018 and 2019 budgets comparable

Revenue Increases Impact on tax-based Revenue Expense Funding Revenue Increases – Rate/Volume $ 1.6 M $ 0.5 M ($ 1.1 M) User Fee Changes $ 0.7 M $ 0.0 M ($ 0.7 M) Volume Increases $ 0.9 M $ 0.5 M ($ 0.4 M) New Sources $ 0.0 M $ 0.0 M $ 0.0 M $ Budget Details $0.7M • Fees and charges for 2019 as proposed to the Park Board for approval; User Fee Changes 0.9% average impact on rates Rev $0.9M • Volumes experienced in 2017 and 2018 were incorporated into 2019 Volume Increases Exp ($0.5M) budget, along with changes to associated direct costs • Key areas which were adjusted include: Recreation passes and admissions, VanDusen Garden admissions, Bloedel Conservatory admissions and Commercial Leases (percentage of sales) 33 Nil • None forecasted for 2019 New Sources

Fixed Costs Increases Impact on tax-based Revenue Expense Funding Fixed Cost Increases and Adjustments ($0.3 M) $2.8 M $3.1 M $ Budget Details Wages $2.2 M 2% increases for CUPE 15 & 1004 per collective agreements, increased Medical Services Plan benefit costs, offset by decreases related to WorkSafe BC reviews Equipment and fleet $0.5 M Increased budget for vehicles, small equipment and fuel Internal allocations & $0.3 M Increased costs in support services from other city departments other costs Building occupancy $ 0.1 M Net adjustments for natural gas, electricity, steam heat, janitorial costs services & supplies, property insurance, etc. Corporate Rev ($0.3M) Corporate sponsorship agreement ended reducing revenues Sponsorship Exp ($0.3M) and transfer to reserves 34

New Services/Programs Impact on tax-based Revenue Expense Funding New Services/Programs $1.1 M $2.0 M $0.8 M $ Budget Strategic Context Exp $0.9M WorkSafeBC mandated safety equipment Park Maintenance • Safety Requirement (HydroVac), Japanese Beetle mitigation, restore • Japanese Beetle funding for off season beach maintenance, and • Beach Maintenance for fire safety in Stanley Park. • Fire Safety Rev $1.1M Overall parking experience oversight transferred Commercial Ops • Parking Enforcement Exp $1.1M to Park Board, including administration of parking • Lease review enforcement from EasyPark. A lease review will be completed to improve overall lease management & relationships 35

New Services/Programs, cont’d In addition to providing new services from incremental funding, Park Board staff have identified opportunities to “self-fund” investments in priority areas. Efficiencies and reprioritization enable the investments below with no net impact on the budget. Investment $ Budget Description & strategic context Recreation Rev $0.3M Recreation staff reprioritized existing budgets to fund Exp $0.3M priorities initiatives that support JOA implementation, community representation, staff safety and prioritized program supplies and materials. 36

Motion - “Horticulture Standards”  At the Regular Board Meeting of the Vancouver Park Board on December 3, 2018, a motion was passed titled, “Horticultural Standards in Vancouver Parks” directing staff to prepare a revised budget to include additional funding for improved horticulture, cleanliness and safety.  A memo in response to the motion has been provided to Commissioners and posted online. Due to timing of the passed motion, changes were not able to be incorporated into the budget as presented. 37

“Horticulture Standards” – Staff Recommendation  The care and maintenance of parks and gardens have been negatively impacted by a number of external factors including increased homelessness, and public realm disorder.  Park operations division has adjusted its operations to divert funding and staff time intended for horticulture to more basic service provision such as paper picking.  An additional permanent investment of $610,000 would be required in order to alleviate current pressures. Due to timing, the 2019 Park Board Operating Budget has not been adjusted to  reflect the above proposed investment.  Adjustments to the budget can be submitted to Council through direction from the Park Board. 38

Operating Costs of Capital Impact on tax-based Revenue Expense Funding Operating Impact of Capital Projects $0.0 M $0.5 M $0.5 M Service Areas $ Budget Service Impact • Incremental funding to increase the budgets for the Killarney Seniors Centre $0.1M As new parks are built the increased park new Killarney Seniors Centre (partial budget added maintenance costs are permanently added to the in 2018 based on half year of operations) base budgets Park Operations $0.3M • For new washrooms to be cleaned, new trees to be maintained, and maintenance and irrigation of new and expanded park space Major Maintenance $0.1M • Ongoing major maintenance of new and renewed park facilities and structures 39

Productivity Savings Impact on tax-based Revenue Expense Funding Productivity Savings Initiatives $0.0 M ($0.1 M) ($0.1 M) Service Areas $ Budget Service Impact Vacancy ($0.1M) • One-time vacancy savings to be achieved through Management strategic timing in hiring where low service impact is expected 40

Other City Department Funding In addition to noted changes to the Park Board budget, investments in other CoV departments will have a direct benefit to users of Park Board services. Park Board Staff will help to guide these initiatives. (Subject to approval by Council) Service Areas $ Budget Service Impact Focused Park and $1.6M • within the Engineering Public Works department 2019 Streets Cleanliness budget, $1.6M has been earmarked for increased spending for public space cleanliness Street Horticulture $0.5M • within the Engineering Public Works department 2019 Maintenance budget, $0.5M has been earmarked for increased street horticulture maintenance 41

2019 Operating Budget - Recap  The 2019 Operating budget provides funded expenditures of $128.1M, an increase of $5.7M or 4.4% • Includes $1.6M of new investment areas • Adjustments to user fees focused on affordability, average increase of 0.9% • No major cuts or service level reductions were required Affordability and continued excellence in service provision were a key focus in  preparing this budget - balancing the existing priorities of Board, Staff, and public feedback  Staff are confident and in support of the Park Board budget that has been prepared. 42

2019 Capital Budget 43

Building the Capital Budget Budget Approach  The Annual Capital Budget for 2019 is derived from the 10-year Strategic Outlook and 4-year Capital Plan (2019 – 2022) Goals  Respond to the needs and pressures of a growing city  Maintain, improve and grow Park Board parks, amenities, and facilities  Continue providing valued services as efficiently as possible  Ensure alignment with Park Board priorities The Capital Budget Consists of Two Components 1. Multi-year Capital Project Budget - the budget for the total costs and the corresponding funding source(s) committed to a specific Capital Project. 2. Annual Capital Expenditure Budget - a project or program’s planned expenditures in the associated year, funded from the overall approved Multi-Year Capital Project 44 Budget

Strategic Capital Framework 45