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

Special Park Board Meeting Monday, December 10, 2018

2019 Operating & Capital Budgets

Parks and Recreation

To seek the Board’s approval of the 2019 Operating and Capital Budgets as submitted by staff.

Presentation to the Park Board - Purpose

• 2019 Operating Budget
• 2019 Capital Budget
• Recommendation

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Parks and Recreation Budget - Overview

2019 Park Board Operating Budget

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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

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Building the Park Board Operating Budget

• 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.

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2019 Park Board Operating Budget - Key Messages

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Building the Park Board 2019 Operating Budget

2018 Restated* Budget Fixed Cost Increases and Adjustments Revenue Increases – Rate/Volume 2019 Proposed Budget New Services/Programs Operating Impact of Capital Projects Productivity Savings Initiatives $59.1 M ($1.1 M) $122.4 M $1.6 M ($0.3 M) $1.1 M $0.0 M $0.0 M $61.6 M $2.8 M $0.5 M $63.3 M $2.0 M $0.5 M ($0.1 M) $128.1 M $0.8 M $0.5 M ($0.1 M) $66.5 M $3.1 M Revenue Expense

Impact on tax-based Funding

Net Change $2.5 M $5.7 M $3.2 M

* The 2018 budget has been restated to make the 2018 and 2019 budgets comparable

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Revenue Increases

Revenue Increases – Rate/Volume ($ 1.1 M) $ 1.6 M $ 0.5 M Revenue Expense Volume Increases User Fee Changes $ 0.9 M $ 0.7 M $ 0.5 M $ 0.0 M ($ 0.7 M) ($ 0.4 M)

$ Budget Details

User Fee Changes $0.7M

• Fees and charges for 2019 as proposed to the Park Board for approval;

0.9% average impact on rates Volume Increases Rev $0.9M Exp ($0.5M)

• Volumes experienced in 2017 and 2018 were incorporated into 2019

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) New Sources Nil

• None forecasted for 2019

New Sources $ 0.0 M $ 0.0 M $ 0.0 M

Impact on tax-based Funding

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Fixed Costs Increases

Fixed Cost Increases and Adjustments ($0.3 M) $2.8 M $3.1 M Revenue Expense

$ 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 &

• ther costs

$0.3 M Increased costs in support services from other city departments Building occupancy costs $ 0.1 M Net adjustments for natural gas, electricity, steam heat, janitorial services & supplies, property insurance, etc. Corporate Sponsorship Rev ($0.3M) Exp ($0.3M) Corporate sponsorship agreement ended reducing revenues and transfer to reserves

Impact on tax-based Funding

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New Services/Programs

New Services/Programs $1.1 M $2.0 M $0.8 M Revenue Expense $ Budget Strategic Context Park Maintenance

• Safety Requirement
• Japanese Beetle
• Beach Maintenance
• Fire Safety

Exp $0.9M WorkSafeBC mandated safety equipment (HydroVac), Japanese Beetle mitigation, restore funding for off season beach maintenance, and for fire safety in Stanley Park. Commercial Ops

• Parking Enforcement
• Lease review

Rev $1.1M Exp $1.1M Overall parking experience oversight transferred to Park Board, including administration of parking enforcement from EasyPark. A lease review will be completed to improve

• verall lease management & relationships

Impact on tax-based Funding

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New Services/Programs, cont’d

Investment $ Budget Description & strategic context

Recreation Rev $0.3M Exp $0.3M Recreation staff reprioritized existing budgets to fund priorities initiatives that support JOA implementation, community representation, staff safety and prioritized program supplies and materials. 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.

• 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
• nline. Due to timing of the passed motion, changes were not able to be incorporated

into the budget as presented.

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Motion - “Horticulture Standards”

• 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.

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“Horticulture Standards” – Staff Recommendation

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Operating Costs of Capital

As new parks are built the increased park maintenance costs are permanently added to the base budgets

Operating Impact of Capital Projects $0.0 M $0.5 M $0.5 M Revenue Expense

Service Areas $ Budget Service Impact Killarney Seniors Centre $0.1M

• Incremental funding to increase the budgets for the

new Killarney Seniors Centre (partial budget added in 2018 based on half year of operations) 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

Impact on tax-based Funding

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Productivity Savings

Revenue Expense Service Areas $ Budget Service Impact Vacancy Management ($0.1M)

• One-time vacancy savings to be achieved through

strategic timing in hiring where low service impact is expected Productivity Savings Initiatives $0.0 M ($0.1 M) ($0.1 M)

Impact on tax-based Funding

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Other City Department Funding

Service Areas $ Budget Service Impact Focused Park and Streets Cleanliness $1.6M

• within the Engineering Public Works department 2019

budget, $1.6M has been earmarked for increased spending for public space cleanliness Street Horticulture Maintenance $0.5M

• within the Engineering Public Works department 2019

budget, $0.5M has been earmarked for increased street horticulture maintenance

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)

• 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.

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2019 Operating Budget - Recap

2019 Capital Budget

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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 Budget

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Building the Capital Budget

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Strategic Capital Framework

On July 25, 2018, the 2019-2022 Capital Plan was approved ($2.8B) $399M of funding supports Park Board service provision

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City of Vancouver Capital Plan 2019-2022

• Total in-year 2019 Park Board Expenditure Budget for approval is $63.7M;

supported through carry forward projects and requested approval of new multi-year project budgets totaling $49.9M

• Park Board capital projects focus on continuing to expand and renew parks and open

spaces, as well as renew existing recreation facilities while beginning to plan and commence work on new facilities supporting growth and increased demand.

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2019 Park Board Capital Budget – Key Message

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2019 Park Board Capital Budget

2019 Budget

$ Multi-Year $ In-Year

Park Land Acquisition $10.0M $10.8M Urban Forestry and Natural Features $4.4M $4.1M Seawall and Waterfront $4.0M $5.1M Programmed Activity Areas $3.1M $8.3M Park Amenities $16.5M $18.0M General Features and Infrastructure $2.9M $2.9M Park Buildings $3.3M $3.1M Total Parks and Open Spaces $44.1M $52.3M Recreation Facilities $5.3M $10.9M Service Yards, Vehicles & Equipment $0.5M $0.5M Total Capital Budget for Approval $49.9M $63.7M

• Funds are for new parkland acquisitions
• locations to be determined and subject to purchase

agreements

• There is a continued focus on an acquisition on the Fraser

River waterfront, expanding the functionality of existing parks and adding natural areas.

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Park Land Acquisition $10.8M

Construction & Delivery Stage Projects

• Park and Street Trees - planting of new trees $2.2M

Early Concept, Planning & Design Projects:

• Biodiversity Enhancements - Tatlow Stream & Beaver Lake $1.2M

Supporting Components:

• Lost Lagoon Fountain Upgrades $0.2M
• Urban Forestry Tree Inventory $0.2M
• Access to Nature and Community Gardens $0.2M
• Stanley Park Cliff Scaling $0.1M

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Urban Forest and Natural Features $4.1M

Construction & Delivery Stage Projects

• Stanley Park Waterfront and Seawall Renewal $2.6M
• Stanley Park Cycling and Pedestrian Pathways $1.5M

Early Concept, Planning & Design Projects:

• Marine Structures (Piers, Docks and Boardwalks) $0.5M
• Jericho Pier Condition Assessment and Design $0.5

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Seawall and Waterfront $5.1M

Construction & Delivery Stage Projects:

• Golf Course Improvements (including Langara Drainage Improvements) $4.3M
• Playfield Renewal - Montgomery & Slocan Park $2.4M
• Court Upgrades and Renewals - Pandora and Cedar Cottage Parks $0.9M
• Recreation Space - Coopers Park $0.2M
• Baseball and Softball Diamond Renewals - Kensington & Killarney Parks $0.1M
• Neighbourhood Matching Fund

Early Concept, Planning & Design Projects:

• New Outdoor Pool – Planning and Design $0.1M
• Track and field – Design $0.2M
• New Synthetic Turf Field $0.1M

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Programmed Activity Areas $8.3M

Construction & Delivery Stage Projects:

• Smithe & Richards Park $0.6M (Total project >$12M)
• Playgrounds and Water Spray Parks Renewals $5.0M;
• See report for listing of playgrounds and spray parks
• Brewers and Clinton Park - Park Renewals $1.8M
• East Fraser Land Park – Design and Construction $1.3M
• Opening Phase 1 in 2019 and design work on Promontory, Avalon and the

Synthetic Turf playfield

• China Creek North Neighbourhood Park Renewal $0.9M
• Renfrew Ravine Park Renewal/Upgrade $0.3M
• Dog Parks –New and Upgrades $0.3M

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Park Amenities $18.0M (continued on next page)

Early Concept, Planning & Design Projects:

• SEFC East Park Olympic Village – Design and Construction $1.1M
• QE Master Plan - Cambie Corridor Park Development $0.4M
• West End Park Redevelopment - English Bay to Sunset Beach $0.4M

Supporting Components:

• Project Management $4.2M
• Parks and Recreation Studies $0.9M
• Other $0.8M

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Park Amenities $18.0M (continued)

Construction & Delivery Stage Projects:

• Paving Upgrades in Stanley Park $1.2M
• Bridge Replacement - Condition Assessment $0.8M
• Irrigation Systems and Water Conservation $0.5M
• Burrard Marina Upgrades $0.3M
• Pathway Improvements and Parks Green Operations $0.1M

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General Features and Infrastructure $2.9M

Construction & Delivery Stage Projects

• Washroom & Fieldhouses $2.3M
• Park Buildings - Capital Maintenance $0.5M
• Park Buildings – Renovations $0.2M
• Park Fieldhouse Upgrades $0.1M

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Park Buildings $3.1M

Construction & Delivery Stage Projects

• Capital Maintenance & Renovations- Recreation Facilities $4.1M
• West Pt Grey Community Centre - Youth Room Renovations $0.2M
• Kensington Community Centre Community Hall $0.1M

Early Concept, Planning & Design Projects

• Britannia Community Centre $2.6M
• Community Recreation Facilities Upgrades $1.8M
• Renewal of Marpole - Oakridge Community Centre – Design $1.1M
• West End Community Centre Renewal Master Plan $0.5M
• Planning for Renewal of RayCam Community Centre $0.5M

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Recreation Facilities $10.9M

Early Concept, Planning & Design Projects

• Sunset Service Yard Renewal $0.5M

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Service Yards, Vehicles & Equipment $0.5M

• Total in-year 2019 Park Board Expenditure Budget for approval is $63.7M;

supported through carry forward projects and requested approval of new multi-year project budgets totaling $49.9M

• Park Board capital projects focus on continuing to expand and renew parks and open

spaces, as well as renew existing recreation facilities while beginning to plan and commence work on new facilities supporting growth and increased demand.

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2019 Park Board Capital Budget – Key Message

Recommendation

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THAT the Vancouver Park Board approve: A. The 2019 Park Board Operating Budget of $128,124,176 in expenditures and transfers, funded by $61,597,742 in revenues and $66,526,434 of tax- based operating funds, as outlined in this report and in Appendix A; B. The 2019 Park Board Multi-Year Capital Project Budget in the amount of $49,901,250, which consists of $44,126,250 in the Parks and Open Spaces service category as outlined in Appendix B of this report, and $5,775,000 in the Recreation Facilities, Service Yards, Vehicles & Equipment, and Public Art service categories as outlined in Appendix D of this report;

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Recommendation - Final Amended

C. The 2019 Park Board Annual Capital Expenditure Budget in the amount of $63,751,605, which consists of $52,307,252 in the Parks and Open Spaces service category as outlined in Appendix B of this report, and $11,444,353 in the Recreation Facilities, Service Yards, Vehicles & Equipment, and Public Art service categories as outlined in Appendix D of this report; and D. Subject to approval of recommendations A, B and C above, the submission of the Park Board’s 2019 Operating and Capital Budgets to Vancouver City Council for consideration in the approval of the City of Vancouver’s 2019 Operating Budget and 2019 Capital Budget.

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Recommendation - Final Amended

Recommendation - Final Amended (+ E)

• E. FURTHER THAT, based on the information provided by staff in the memo

reporting back on the Horticultural Standards in Vancouver Parks motion approved by the Board on December 3, 2018, the Vancouver Park Board request from Council an additional $610,000 for the 2019 Park Board Operating Budget to enable improvements to service provision to parks, with a focus on horticulture, cleanliness and safety.