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

Minneapolis Park and Recreation Board Minneapolis Park & Recreation Board Committee of the Whole 2021 Budget Retreat May 13, 2020 www.minneapolisparks.org/budget 1

Welcome and Budget Message  Committed to solid foundation of visionary leadership, clear direction, and decision making based on data and analytics  Strategic Directions and Performance Goals  Re-envisioning Recreation Services  Closing the Gap: Investing in Youth report  Vision for investing in youth: six pillars  Program development engine team to research, develop and evaluate new programs  Recreation data and evaluation team to assess services and benchmark against national standards 2

Welcome and Budget Message  Coronavirus pandemic (COVID-19) has changed the service and budget landscape  Social distancing has greatly impacted our ability to provide events, programs and services  Staff are focused on responding to the current crisis and re-imagining programs and services that can be conducted virtually or within social distancing guidelines.  2021 Budget Process has been modified and departments have not been asked to submit 2021 budget requests 3

Welcome and Budget Message  Budget retreat Day 1  Sets the base for budget discussions  Introduces 2021 budget issues  Provides fund histories and projections  Provides overview of 2018-2022 Strategic Directions and Performance Measures and changes to milestones and accomplishments due to COVID-19  Provides information about department 2020 budget goals that are being adjusted due to COVID-19  Allows for discussion of the Board authorized General Fund excess fund balance allocations and returning some of those funds back to fund 2020 operations 4

Welcome and Budget Message  Budget retreat Day 2  Focuses on 2021 Budget Planning  Provides information on revenue sources and economic risks  Obtain Board input to guide the direction of the 2021 Budget  Current Service Level considerations  Maximum property tax levy request  2021 Budget Framework and Direction 5

2021 Budget Discussion 6

2021 Budget Development Timeline 7

2021 Budget Development Timeline 8

2021 Budget Development Timeline 9

2021 Budget Issues The following issues to consider impacting the financial condition of the Minneapolis Park and Recreation Board (MPRB) are in addition to direction already set forth by the Board in the adopted 2018-2022 Strategic Directions and Performance Measures.  Coronavirus pandemic (COVID-19) impacts  Service Delivery Impacts  Financial Impacts  Economic Recession 10

2021 Budget Issues  System growth, expansion and service levels  Downtown Service Area  Northeast / Southeast Service Area  North Service Area  Central Mississippi Riverfront Regional Park  Enterprise Fund stabilization  Development of an enterprise operating model for the Minneapolis Sculpture Garden  Development of an enterprise operating model for Waterworks  Re-envisioning Golf Operations 11

2021 Budget Issues  Capital investment needs  Network upgrades and expansion  Parkway paving and lighting  RiverFirst  Reinvesting in operation facilities  Infrastructure and utilities  Enterprise Fund capital investment  Land Acquisition Fund  Historic and iconic homes  Other Emerging Issues  Pesticide free parks analysis  Unsheltered people in parks 12

General Fund History and Projections 13

General Fund General Fund   The General Fund is the MPRB’s main operating fund that reports activities not reported in other funds. General Fund Activities   Care & Maintenance of the Park System  Recreation Facility Operations and Programming  Planning for Development & Redevelopment of the Park System  Park Safety & Security  Executive Management  Support Services 14

General Fund History 15

General Fund Revenues  Property Tax  Local Government Aid (LGA)  Other Revenue 16

Property Tax The Park Board property tax levy has increased an average of 4.4 percent  annually for the past ten years, including the Tree Preservation and Reforestation Levy, which was reinstated in 2014, and the 20-Year Neighborhood Park Plan which began in 2017. Park Board Property Tax Levy (in millions) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Fund $47.2 $47.2 $48.6 $48.6 $50.6 $52.6 $58.0 $60.5 $63.9 $67.6 Increase 3.8% 0.0% 3.0% 0.0% 4.0% 4.0% 10.3% 4.2% 5.8% 5.8% Tree Levy $1.0 $1.5 $1.7 $1.7 $1.8 $1.8 $1.9 Increase 45.9% 17.4% 0.0% 1.2% 3.0% 3.9% Total $47.2 $47.2 $48.6 $49.6 $52.0 $54.3 $59.7 $62.2 $65.7 $69.5 Increase $ $1.7 $0.0 $1.4 $1.0 $2.4 $2.3 $5.4 $2.5 $3.5 $3.8 Increase % 3.8% 0.0% 3.0% 2.1% 4.9% 4.4% 10.0% 4.1% 5.7% 5.7% 17

Property Tax City of Minneapolis property taxes have increased an average of 3.4 percent  annually for the past ten years. City of Minneapolis Property Tax Levy (in millions) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Amount $220.8 $220.8 $224.0 $220.5 $224.0 $231.7 $242.6 $256.4 $271.6 $292.2 Increase $ $10.8 $0.0 $3.2 -$3.5 $3.5 $7.7 $10.9 $13.8 $15.2 $20.6 Increase % 5.2% 0.0% 1.5% -1.6% 1.6% 3.4% 4.7% 5.7% 5.9% 7.6% 18

Property Tax The Park Board is heavily reliant on property taxes, while the City of  Minneapolis has more diversified revenue sources, reducing reliance on property taxes. 2020 Park Board General Fund 2020 City of Minneapolis General Revenue by Major Sources Fund Revenue by Major Sources Property Tax Property Tax 75% 45% Fees, Fines & Other Revenue LGA Fees, Fines & 41% 14% Other Revenue LGA 14% 11% 19

Local Government Aid Actions to balance the state budget from 2008-2011 resulted in reduced Local  Government Aid (LGA) payments to Minnesota cities. The Park Board lost $8.5 million in LGA due to the reductions over these four years. In 2020 Park Board LGA was increased by $269,000.  Park Board Local Government Aid (LGA) $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Actual LGA Certified LGA 20

General Fund Other Revenue Other revenue includes:   License, permit and service fees  Grants and donations  Building and grounds rentals  Fines  Overhead Charges, Transfers from other funds, Pension Credits In the 2013 budget a number of activities were moved from the enterprise  fund to the general fund, resulting in greater fee revenue in the general fund The increase in 2020 is due to the transfer from the City for The Commons  Park and increases in non-youth fees to support youth programs General Fund Other Revenue (in millions) 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 (Budget) $5.2 $5.0 $9.6 $8.5 $9.9 $9.9 $10.0 $10.9 $11.7 $12.7 21

General Fund Non-Property Tax Revenue 2020 Park Board General Fund Non-Property Tax Revenue Transfers Donations & Grants Police Fines 1% 4% 1% Permits 2% State Aids/Funding 46% Rental Charges 8% Charges for Services 14% User Fees 24% 22

General Fund Expenditures  General Fund Operating Budget History  Capital Funding  Full-Time Employees 23

General Fund Operating Budget History Park Board General Fund operating budget has increased $32.3 million,  or an average of 5.4 percent over ten years. Fee based recreation programs of $3.5 million moved to the  General Fund in 2013. NPP20 operations funding of $3.0 million was added to the General  Fund in 2017. Increases in health insurance premiums, pension contribution rates, and  utility costs directly reduced the amount of funding available for programs and services. Recent increases in state aid, property tax revenues, and the moderating of health insurance increases has helped improve Park Board finances. Operating Budget History (in millions)* 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 $53.8 $53.8 $59.5 $62.5 $65.7 $68.4 $73.8 $77.7 $81.3 $86.1 -3.8% 0.0% 10.6% 5.0% 5.1% 4.1% 7.9% 5.3% 4.6% 5.9% *Does not include tree preservation & reforestation levy 24

General Fund Operating Budget History 2020 Operating Expenditures Total salary, fringe and operating Health Insurance funding percentages are similar in 8.4% Utilities & Fuel Pensions 2011 and 2020, however costs for 4.2% 3.9% mobile equipment and technology Other Operating have increased by $3.9 million as 23.8% the Park Board has worked to Salaries & Fringe 59.7% stabilize internal service funds and Total Salaries, Fringe & Other Operating improve operating efficiencies and service delivery through the use of 2011 Operating Expenditures* technology. Health Insurance Pensions 9.2% Utilities & Fuel 3.6% 5.2% Other Salaries & Fringe Operating 59.5% 22.5% Total Salaries, Fringe & Other Operating 82.4% 25 *includes the same activities as 2020 Operating Expenditures