2016 MUNICIPAL BUDGET PRESENTATION Draf aft t 20 2016 Bu 6 - - PowerPoint PPT Presentation

2016 MUNICIPAL BUDGET PRESENTATION

Draf aft t 20 2016 Bu 6 Budget get Over ervie view

• 2016 Objectives
• TLC to me…
• Common Concerns
• Cost Recovery
• Reserves
• Detailed Budget
• Revenues
• Expenses
• Breakdown of

Municipal Contribution

• Operating
• Capital Equipment

Lifecycle

• Infrastructure
• Summary
• TLC to you…

2016 16 Obj bjectiv ectives es

St Stakeh eholde

• lder Engagem

gagemen ent Incr creased eased Uti tiliz izati tion

• n

Enhanced focus on lifecycle and infrastructure management (Governance Review). Expand program offerings where possible (WMC Revenue Review). Enhanced custodial service (Custodial Review, Customer Focus Groups and WMC Revenue Review). New membership categories (WMC Revenue Review, Customer Feedback). Addition of Facility Support Staff (Governance Review). Community Sport Partnership Program (WMC Revenue Review). Customer service renovation (Customer Focus Groups). Explore additional spaces in order to deliver additional programs. Fitness renovations (Customer Feedback, WMC Revenue Review). Collaborate with user groups to maximize facility scheduling/usage. New recreation management software (CLASS replacement). Explore new community partnerships in

• rder to enhance program/service

delivery.

TLC to me… (M

(Man anag agement) ement)

The Board

Interests ests of Staff Interests ests of the Municipali cipalities ties Interests ests of Pot

• ten

enti tial Clients ts Interests ests of Existi sting ng Clients ts

TO

Comm mmon

• n Conc

ncerns erns

• 75.5% Budgeted Cost Recovery

Cost t Rec ecover ery

YEAR AR BUD UDGETED GETED COST T RE RECOVE VERY ACTU TUAL AL COST T RE RECOVE VERY 2013 81.86% 82.82% 2014 79.24% 79.85 2015 78.52% 81.28% 2016 75.5%

FACI CILIT ITY COS OST T RECO ECOVER VERY Trans nsAlta ta Tri Leisu sure re Centre ntre

81.28%

Leduc educ Communi

• mmunity

ty Recreat reation ion Centre ntre

71%

Servu vus s Place

101%

Collic licutt utt Centre ntre

51.7%

City y of Ed Edmont monton

• n

49%

Millenn enniu ium m Place

100%

Dow w Cent ntenn nnial ial Centre ntre

38%

Cold ld Lake e En Ener ergy gy Centre ntre

55%

Comm mmon

• nwealth

ealth Comm mmun unit ity y Recre reati tion

• n Centre

ntre

58%

MacDonald

• nald Island

and Park Park (Par Part 9 Com

• mpan

any)

70%

Cost t Rec ecover ery

TLC accounts

• unts 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:

Finan ance/ e/Cor Corporat porate e Servic vices es Includin uding: g: $715,000

5,000

Corporat

• rate

e Communica mmunicati tions

• ns Including:

uding: $195,000

95,000

Inf nfrastructur rastructure e Servic vices es inc ncludi luding ng: : $42

420,00 0,000 TOTAL AL TLC C EX EXPEN PENSE SE is $1

$1,3 ,330 30,0 ,000 00

Part t 9 Company y vs. Mu Municipal pal Facilit ity

*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
• rganizational review and subsequent transition/severance
• expenses. Not including those amounts, 2007 would have also

resulted in an operating surplus.

YEAR Audited Final Restricted & Unrestricted Fund Expenses from Reserves Expense Description 2003 $360,744 $139,572 Sport court, tables & chairs, Fitness Equipment and computers 2004 $782,866 $182,133 Video surveillance equipment, storage facility, entrance sign and pipe and drape 2005 $1,212,864 $228,984 Fitness equipment, Play Centre flooring, pool acoustic panels and arena curtain 2006 $1,635,245 $72,251 Fitness equipment, Volleyball nets and janitorial auto scrubbers 2007 $1,266,519 $457,302 Parking lot expansion ($250,000), stage, copier machines, dry change room renovation, arena board renovations, flex flooring and shower upgrades 2008 $1,533,726 $109,856 Frequency drives, spin bikes and shower upgrades 2009 $1,355,626 $143,974 Fitness equipment, expansion feasibility study, water chemical controller, and diving board 2010 $641,219 $497,669 Expansion schematic design, field divider curtain, Zamboni, fitness 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 2013 $719,492 $244,354 Fitness equipment, FAME software, building maintenance software, lighting upgrades and janitorial equipment 2014 $880,381 $324,952 Fitness equipment, concourse soft seating, end board systems in fields, 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

Ap Approved d 2015 5 Bud udget Draft t 2016 6 Bud udge get Membe mberships, hips, Pas Passes ses and Admiss ssions ions

2,950,000 2,985,000

Programs rams and d Services vices

1,014,439 1,018,098

Facility ility Renta ntals ls and Ev Events nts

956,285 992,040

Admini inist stra rati tion

• n

(miscellane cellaneou

• us)

743,298 774,237

Tot

• tal

al Revenues enues (excl cluding ding mun unici icipal pal

• per

erat ating ing contr tribution ibution)

5,664,022 5,769,375

$823,846 $874,151 $743,298 $774,237 $1,341,158 $1,493,325 $1,549,031 $1,868,115 $918,581 $1,004,314 $1,014,439 $1,018,098 $1,016,106 $956,816 $956,285 $992,040

$2,775,263 $2,808,683 $2,950,000

$2,985,000

$- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Actual 2013 Actual 2014 Approved 2015 Draft 2016

Revenue Breakdown by Object

Administration - misc. Municipal Contribution (operating) Programs Facility Rentals Member/Pass

“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)

Western ern Manag nagement ment Consult nsultants ants

2016 16 Exp xpenses enses

Expenses enses

Ap Approved d 2015 5 Bud udget Draft t 2016 6 Bud udge get Salaries ies and Bene nefits ts

4,649,767 4,440,792

Materials rials, , Goods

• ds,

Sup upplies ies (Inc nc. . Depreci reciat ation) ion)

1,943,289 2,676,698

Utiliti ties es

845,000 790,000

Restr trict cted d Reser serves es

5,000 5,000

Tot

• tal

al Ex Expense enses

7,443,056 7,912,490

$4,157,485 $4,386,994 $4,649,766 $4,440,792 $1,610,776 $2,144,019 $1,943,289 $2,676,698 $1,126,171 $782,189 $845,000 $790,000 $5,000 $5,000

$1,000 $501,000 $1,001,000 $1,501,000 $2,001,000 $2,501,000 $3,001,000 $3,501,000 $4,001,000 $4,501,000 $5,001,000 Actual 2013 Actual 2014 Approved Budget 2015 Draft Budget 2016

Expens enses es by object ect

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

• n

Munic icip ipal l Contri ribution bution App pproved ed Budg dget et 2015 Budg dget et 2016 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 Contributi ibution

• n

2,123 23,48 ,481 3,02 021,03 ,032

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

What do you expect from the TLC?

TLC to you… (Municipal Partner)