Minneapolis Park and Recreation Board Committee of the Whole 2021 - PowerPoint PPT Presentation

Minneapolis Park and Recreation Board Committee of the Whole 2021 Budget Retreat May 14, 2020 www.minneapolisparks.org/budget 1

2020 Budget Framework (Adopted April 22, 2020) 2

2020 Budget Framework Stage 1 – Social distancing requirements, stay-at-home order, closures/cancellations of buildings, events and programs, aspects of service delivery on hold. This stage was initiated on April 3, 2020. 1. Take immediate action to reduce costs a. Hiring Freeze – Appointed, Certified Civil Service and Provisional Employees (part-time and full-time), exceptions to be approved by Division Head and Superintendent b. Spending Freeze – only critical purchases should be made c. Travel and Training Freeze – only required trainings; no travel 3

2020 Budget Framework Stage 2 – Social distancing requirements, modified building, event and program uses/offerings, aspects of service delivery on hold or modified, position MPRB for possibility for rapid restoration of service delivery. This stage is beginning to be implemented where allowable through Superintendent authority and, if approved by the Board, additional items will be completed in the coming weeks due to the extension of the stay-at-home order and the current predictions by the MN Department of Health that the epidemic peak will occur in early July which is anticipated to require an extended length of the social distancing requirements. 1. Modify revenue estimates as programs and services are re-established, and assistance becomes known a. Establish modified programs and services that do not violate social distancing requirements and/or can be provided virtually (in process) b. Identify and apply for state and federal relief available to local governments (ongoing) 4

2020 Budget Framework 2. Determine appropriate level of fund balance that should be used to offset the loss of revenue a. Identify how emergency fund balance would be replenished to meet financial policy requirements (complete retain enough fund balance to assist if needed for another storm emergency $1 - $2 million) b. Identify and return General Fund one-time fund balance authorizations back to excess fund balance (conversation with Board during Committee of the Whole) 3. Determine internal loan repayments and transfers that can be cancelled or delayed a. Identify General and Enterprise Funds internal loan repayments to defer and extend payback period (complete utilizing Superintendent authority will bring resolutions to confirm in June) b. Identify General Fund internal transfers to cancel reducing the amount available for the program impacted(complete utilizing Superintendent authority will bring resolutions to confirm in June) 5

2020 Budget Framework 4. Determine capital and rehabilitation projects that can be delayed or re- aligned a. Identify Enterprise Fund capital and rehabilitation projects to be delayed (in process) b. Consider the realignment of the NPP20 CIP for the years 2020 and 2021 toward rehabilitation vs. capital in year 2020 (complete – Resolution 2020-201 adopted on May 6, 2020) c. Consider the shifting of Operations & Maintenance Lottery-in-lieu excess fund balance to current year General Fund operations (in process – bring forward to Board for consideration in June) 6

2020 Budget Framework 5. Take action to reduce personnel costs a. Wage Freeze for all full-time and part-time employees (under consideration) b. Inactivate provisional employees who do not have work assignments in the current service model - Note: allows employees to apply for unemployment benefits (has begun, employees on layoff status to be called back when work becomes available) c. Budgetary Leave enacted for voluntary unpaid leave by Appointed and Certified Civil Service employees (First request complete – 8,312 hours of budgetary leave given by staff) 7

2020 Budget Framework Stage 3 – Economic recession – budget development and financial planning, re-defined service delivery. This stage will be implemented if the State enters an extended economic recession. Board actions will be sought to implement these items, as required. 1. Board direction during budget development and financial planning process for revised 2020 Annual Budget (in process – began with the adoption of this budget framework and will continue through monthly financial status reports and financial discussions with Board) 2. Board direction during budget development and financial planning process for the 2021 Annual Budget (in process - budget retreats and Draft 2021 Budget Framework) a. Wage Freeze for multiple years (City is considering 2020 and 2021) b. Wage Cuts c. Separation or elimination of some positions – vacancy/severance/buy-outs 8

General Fund Excess Fund Balance Allocations 9

General Fund – Excess Fund Balance Allocations 10

Revenue Sources and Economic Risks 11

General Fund Revenue Sources 2020 Park Board General Fund Revenue by Major Sources Property Tax 75% Fees, Fines & Other Revenue 14% LGA 11% 12

General Fund Non Property Tax Revenue 2020 Park Board General Fund Non-Property Tax Revenue Donations & Grants Transfers Police Fines 4% 1% 1% Permits 2% State Aids/Funding 46% Rental Charges 8% Charges for Services 14% User Fees 24% 13

Revenue Sources and Economic Risks 14

Current Service Level Discussion 15

Planning for 2021 Entering budget process in midst of a health and economic crisis  Uncertain, instable and unpredictable are words that describe our current  condition Pandemic duration  Social distancing requirements  Stay-at-home orders  Revenue shortfalls  Economic recession  Current Service Level  Understanding impacts to programs, services, events and park use  Refining levels of service based on those changes  16

Current Service Level 6.30% 5.38% 4.60% 4.28% 4.23% General Fund Property Tax Levy Increase Adopted Est Est Est Est Est Budget Budget Budget Budget Budget Budget 2020 2021 2022 2023 2024 2025 Property Taxes 66,953,700 71,170,110 74,999,062 78,449,019 81,806,637 85,267,058 Local Government Aid 9,624,270 9,130,605 9,130,605 9,130,605 9,130,605 9,130,605 Commons Transfer 820,000 820,000 820,000 820,000 820,000 820,000 Fees, Fines and Other Revenues 11,836,138 11,602,073 11,602,073 11,602,073 11,602,073 11,602,073 Total Revenue 89,234,108 92,722,788 96,551,740 100,001,697 103,359,315 106,819,736 Full-Time Wages & Fringe 44,202,656 46,515,194 48,246,711 50,037,099 51,888,360 53,802,565 Part-Time Wages & Fringe 10,538,038 11,195,381 11,855,870 12,331,927 12,615,562 12,905,720 Health Insurance 7,248,460 7,610,883 7,991,427 8,390,999 8,810,548 9,251,076 Other Expenditures 24,149,954 24,306,330 25,362,732 26,146,672 26,949,844 27,765,375 Operating Costs 86,139,108 89,627,788 93,456,740 96,906,697 100,264,315 103,724,735 Neighborhood Park Capital Levy 2,180,000 2,180,000 2,180,000 2,180,000 2,180,000 2,180,000 Operations Facilities 500,000 500,000 500,000 500,000 500,000 500,000 Regional Park Transfer 100,000 100,000 100,000 100,000 100,000 100,000 Park Land Acquisition Reserve 315,000 315,000 315,000 315,000 315,000 315,000 Total Expense 89,234,108 92,722,788 96,551,740 100,001,697 103,359,315 106,819,735 Estimated Gap 0 0 0 0 0 *Does not include tree preservation & reforestation levy 17

Current Service Level with COVID-19 and Recession Impacts COVID-19 Recession Combined General Fund Property Tax Levy Increase 6.30% 6.30% 0.68% 0.68% Adopted Est Est Est Est Budget Budget Budget Budget Budget 2020 2021 2021 2021 2021 Property Taxes 66,953,700 71,170,110 71,170,110 67,410,090 67,410,090 Local Government Aid 9,624,270 9,130,605 9,130,605 9,130,605 9,130,605 Commons Transfer 820,000 820,000 820,000 820,000 820,000 Fees, Fines and Other Revenues 11,836,138 11,602,073 7,729,027 11,602,073 7,729,027 Total Revenue 89,234,108 92,722,788 88,849,742 88,962,768 85,089,722 Full-Time Wages & Fringe 44,202,656 46,515,194 46,515,194 46,515,194 46,515,194 Part-Time Wages & Fringe 10,538,038 11,195,381 10,477,289 11,195,381 10,477,289 Health Insurance 7,248,460 7,610,883 7,610,883 7,610,883 7,610,883 Other Expenditures 24,149,954 24,306,330 23,580,570 24,305,570 23,580,570 Operating Costs 86,139,108 89,627,788 88,183,936 89,627,028 88,183,936 Neighborhood Park Capital Levy 2,180,000 2,180,000 2,180,000 2,180,000 2,180,000 Operations Facilities 500,000 500,000 500,000 500,000 500,000 Regional Park Transfer 100,000 100,000 100,000 100,000 100,000 Park Land Acquisition Reserve 315,000 315,000 315,000 315,000 315,000 Total Expense 89,234,108 92,722,788 91,278,936 92,722,028 91,278,936 Estimated Gap 0 (2,429,193) (3,759,260) (6,189,213) 18