APEX PARK AND RECREATION DISTRICT, COLORADO 2017 Budget

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1 Budget 2017

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3 APEX PARK AND RECREATION DISTRICT, COLORADO 2017 Budget Report Prepared By Apex Park and Recreation District, Finance Division Available online at Apexprd.org

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5 2017 Budget: Readers Guide The 2017 Budget document is divided into sections listed and explained below: Introductory Section This section contains the transmittal letter, which is the communication from the Executive Director and Finance Director to the Board of Directors of Apex Park and Recreation District. It highlights the 2017 Budget including how it addresses the priorities established by the Board, changes from the prior year and economic trends impacting the District. Budget Summary The Budget summary includes a high-level overview about the District, its structure and budget process. The summary also presents summary tables and graphs of the 2017 budget. Fund Summaries This section explains the fund structure of the District and purpose of the funds. The budget for each fund is presented along with analysis of past financials and current projections. Division/Program Detail This section gives the organizational structure of the District. Each division is summarized with a background and its descriptions of programs. This summary includes performances measurements and goals along with the budget. Capital Project Plan This plan shows the capital project planning for the District and discusses the projects, the funding and any future costs or benefits. Appendices The Appendices contains the breakdown of the property tax levy calculation and the assessment from the counties. In addition, there is resource information with the Fiscal Health Report and a Glossary, which provides definitions of words used throughout the document that may not be familiar to the reader.

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7 TABLE OF CONTENTS INTRODUCTORY SECTION Transmittal Letter 1 BUDGET SUMMARY District Overview 4 What is the District s Fund Structure? 6 What is the Budget Process? 7 What Policies Guide the Budget Process? 8 What is the 2017 Budget? 12 FUND SUMMARIES Fund Summary Overview 17 General Fund 19 Capital Fund 25 Conservation Trust Fund 26 Debt Service Fund 27 Golf Fund 31 DIVISION/PROGRAM DETAIL Overview 36 Administration 37 Racquet Sports and Fitness 40 Recreation Services 42 Community Recreation Center 46 Aquatics 49 Apex Center 52 Golf- Indian Tree 54 CAPITAL PROJECT PLAN Capital project plan 57 APPENDICIES 2017 Budget Appropriation Resolution 62 Tax Levy Assessments 66 Fiscal Health Report 79 Glossary 85

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9 December 12, 2016 Board of Directors Apex Park and Recreation District W. 72nd Avenue Arvada, CO To the Board of Directors, citizens and patrons: We are pleased to submit the 2017 budget of $43,762,910 to the Board, making use of all available funds. We believe we have addressed the operating needs of the District and all the highest priorities. This budget is being submitted in accordance with , Colorado Revised Statutes. Budgeting is not an independent process, as other planning efforts such as strategic planning and capital improvement planning drive budget development. The budget process involves all of management and the Board with monitoring throughout the year as described in the Budget Summary. The annual Budget is one of the most important documents approved by the Board due to its comprehensive nature, including outlining the range of services offered, prioritizing the allocation of government resources and the time invested by both the Board and staff in future planning 2017 Budget The total 2017 operating budget for all appropriated funds is $43,762,910, this large increase is due to the new Bond projects. For operations, the General fund 2017 appropriation is $12,709,139 and the Golf fund $2,012,145. There are some big changes for the 2017 with the new issuance of bonds and the projects approved by the voters in May of Below are the items impacting the 2017 budget. Fund Designation Change The Apex Recreation Center was accounted for in previous years as an enterprise fund, which are funds that account for activities that are often seen in the private sector and are operated in a similar manner as in the private sector. This Apex fund has operated to be self-sufficient but not to cover costs in the matter of accrual accounting covering costs such as depreciation. This fund will be eliminated and the Apex Recreation Center will be a department accounted for in the General fund, the main operating account of the District. Revenue Performance Fees assessed this year were based on market research, program costs and economic factors. The Board approved the admission and activity fees August 2016; all other program fees have been assessed and approved by the Executive Director. The Denver Metro area economy is improving, specifically within the District s boundaries, and housing prices are increasing. The preliminary property tax assessment has increased, which increases the District s tax revenue base. Apex Park and Recreation District Transmittal Letter 1

10 Expenses The 2017 budget there are no major onetime expenses other than capital projects. Inflation for the first half of 2016 is 3% for the metro area so the budget reflects rising costs. The District s Workers Compensation and Property and Liability insurance provider (Colorado Special Districts Property and Liability Pool) has estimated for the District that the Insurance Pool will raise insurance rates 6%. Our health insurance premiums are estimated to increase by 5% for Employee wages have increases with market surveys that were performed that impacted some ranges for January 2017 and there are planned raises for the rest of the staff not impacted by the other changes that will occur in July In addition, there are five proposed new full time positions starting in various times through spring and summer for the General fund and two full time positions for the Golf Fund. Capital Projects With the new debt issuance approved by voters in May 2016 there are six major projects starting in 2016 finishing by 2018 with the bulk of the spending occurring in Also, there are projects funded by Conservation Trust Fund and the Capital fund which include the completion of the Simms Street center and grounds. Funds Bottom Line and Reserves To maintain the District s strong financial position and excellent credit rating while being able to maintain and improve assets, fund balance is important to monitor and maintain enough to weather any future financial crisis. The overall General fund unappropriated/unassigned reserve fund is forecast to be approximately $3,163,946 by year-end Conclusion In closing, we respectfully submit the 2017 budget for the Board of Directors, District employees, and the residents and patrons of the District. Staff spent many hours discussing priorities and options for 2017, and we believe that the 2017 Budget will allow us to continue to operate the District adequately, to our standards and most citizen expectations. Respectfully submitted, Lauri Dannemiller Executive Director Kristin Donald Finance and Human Resources Director 2 Transmittal Letter Apex Park and Recreation District

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12 District Overview In the beautiful location of Jefferson County, the Apex Park and Recreation District ( District ) serves its community by fostering healthy living and play through its recreational services and programs. The District is a quasi-municipal corporation and political subdivision of the State of Colorado. The District has the responsibility of planning, promoting, developing, maintaining, supervising, and administering all recreation facilities and programs necessary to serve the present and future residents of the District. A five-member Board of Directors, elected at large by the voters of the District, governs the District. The Board oversees the Executive Director who oversees the District s operations. The District was incorporated in 1956 and is in the northwestern part of the greater Denver metropolitan area, of the State of Colorado. Specifically, the District's geographic boundaries encompass most of northern Jefferson County and a small portion of Broomfield County, which at one time was part of Jefferson County. With a few exceptions, Sheridan Boulevard on the east, Clear Creek and 52nd Avenue on the south, Highway 93 on the west and the Boulder county line on the north. The District consists of 12 full-time centers and facilities and a number of part-time or seasonal facilities. With a new bond issuance, described later in detail, we will be adding two full time facility while expanding others. The services encompass a broad range of activities, including, youth services, adult and youth sports, senior programs, racquet sports, fitness and wellness, gymnastics, aquatics, outdoor recreation, art, ice-skating, and golf. The District currently services an estimated population of over 122,000. The District s funding comes from property taxes, charges for services, and operating grants and contributions. The District s location has shown economic improvement over the last five years. The average unemployment rate is 3.2%, while the State of Colorado overall is 4.2%. The median age is reducing in the area as young families move in and use the District s facilities. See the table on the following page showing the demographics for the District as estimated for Budget Summary Apex Park and Recreation District

13 Where does the Money Come from? The District is funded mainly by two sources charges for services and property taxes, see the 2017 Budget break down below: Charges for Service- These are the program and admission fees for the programs in the general fund. This category also includes vending and concession revenue. Taxes- The District s Board of Directors levies property taxes. The levy is based on assessed valuations determined by the County Assessors as of January 1, of each year. The levy is normally set December 15 by certification to the County Commissioners to put the tax lien on the individual properties as of Apex Park and Recreation District Budget Summary 5

14 January 1, of the following year. The County Treasurers remit the taxes collected monthly to the District less a 1.5 % collection fee. There are three levies for the District, one for Debt, General and an additional levy split between the General Fund and the Capital fund. Where Does the Money Go? Revenue collected by the District is directed into different funds. These funds help manage District spending by directing the revenue dedicated to specific activities or objectives to a group of related accounts. By maintaining separate funds, the District is able to comply with laws that require certain money to be spent for specific purposes. There is a large increase in capital outlay which is for the construction for the new bond issuance. The 2017 budget breakdown is below: What is the difference in the budget this year? The total 2017 operating budget for all appropriated funds is $43,762,910, an increase of 131% percent from 2016 mainly due to the bond spending. Without this spending, the budget is $18,864,821 which is a decrease of 0.4%. The District s main operating fund, the General fund, will increase to $12,709,139, up 75% percent due to the inclusion of a separate fund that accounted for the District s largest Center (discussed later in detail below in the Fund Structure). The budget maintains adequate reserves in all funds per the District's financial policies and includes approximately $2.1 million in required debt service payments on outstanding general obligation debt. What is the District s Fund Structure? The District has established a comprehensive fund plan for financial accounting in accordance with the provisions of the recommendations of the National Council on Governmental Accounting as outlined in their publication Governmental Accounting, Auditing, and Financial Reporting (GAAFR), which is the standard accounting guide for local governments. 6 Budget Summary Apex Park and Recreation District

15 Governmental Funds Governmental funds are a group of funds that account for activities associated with the District's basic operations. This group of funds uses a modified accrual basis of accounting and focuses on operating revenues and expenditures. General Fund- The General Fund is the main operating fund for the District, which accounts for all general government activity that is not accounted for in other funds. It includes most tax revenues and fund activities traditionally associated with local government. Capital Fund- Capital Fund is used for the acquisition and maintenance of major capital assets other than those financed through special assessment. Conservation Trust Fund -This fund is used to account for lottery proceeds from the State of Colorado that are legally restricted to expenditures for capital improvements or maintenance for recreational purposes. Debt Service Fund- The Debt Service Fund is used for the payment of principle and interest on General Obligation and other long-term debts. The major sources of revenue are property taxes. Proprietary Funds Proprietary funds are a group of funds that account for activities that are often seen in the private sector and are operated in a similar manner as in the private sector. This group of funds uses a full accrual basis of accounting and focuses on net income and capital maintenance. Enterprise Fund- Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs of providing goods and services to the public on a continuing basis be financed or recovered primarily through user charges. The District is moving from having two enterprise funds to one. The Apex fund is now blended into the General fund starting in The remaining enterprise fund is the Golf fund that accounts for Indian Tree Golf course operation. What is the Budget Process? The annual budget process is designed in accordance with state statutes and District policies. The District s fiscal year runs on the regular calendar year and therefore the annual budget timeline and processes illustrated on the following page is implemented January 1 the following year. State law requires the District to certify its property taxes and mill levy with its counties by December 15 and the District s final budget be submitted by January 30 to the Department of Local Affairs. Apex Park and Recreation District Budget Summary 7

16 What Policies Guide the Budget Process? Balanced Budget The District strives to reach a balanced budget while the District policies permits the District to use fund balance as a resource to balance the budget, fund balance should not and cannot be used as a long-term approach to balancing the budget. Planned uses of fund balances should be limited. This provides the District additional time to make the necessary structural changes to bring the budget into alignment on a long-term basis. It is also appropriate to use fund balance when fund balances have increased beyond the reserve requirements due to higher than anticipated revenues. In this circumstance, the use of fund balances will be used for one-time expenditures, not ongoing operating costs. In all circumstances, it is important to retain sufficient undesignated fund balance for unforeseen circumstances. Long-Range Planning The District needs to have the ability to anticipate future challenges in revenue and expense imbalances so that corrective action can be taken before a crisis develops. The District monitors the fund balance of the general fund and forecasts looking at economic indicators. As part of the budgeting process, all capital improvement projects are analyzed to determine if they reduce, maintain, or increase operating and maintenance costs. Asset Inventory and Condition Assessment The District inventories and assesses the condition of all major capital assets. In addition, District Services Department develops systems and processes to assess the condition of the capital assets that they are responsible for maintaining. 8 Budget Summary Apex Park and Recreation District

17 Revenue Policies The District values a diversified mix of revenue sources to mitigate the risk of volatility. The major source of revenue for the General Fund is property taxes, which comprises over 50 percent of total General Fund revenue. Fees and Charges - The Board approves any changes to the admission and rental fee schedule prior to the budget development. The process includes a careful valuation of the costs for the services to ensure expenditures are covered. Use of One-time Revenues - One-time revenues should be used only for one-time expenditures and not for ongoing expenditures. By definition, one-time revenues cannot be relied on in future budget years. Appropriate uses of one-time revenues include early debt retirement, capital expenditures that will reduce operating costs or address deferred capital needs, information technology projects that will improve efficiency and special projects that will not incur ongoing operating costs. Use of Capital Improvement Fund Revenues - Capital improvement funds are used for the acquisition, repair, or rehabilitation of assets. In addition, there are capital improvement funds that have specific revenue sources dedicated for specific purposes; these include the State Conservation Trust Fund. Expenditure Policies Expenses should always be for District operations and strategic goals. Division heads and the Finance Division monitor expenditures. Debt Capacity, Issuance and Management The Executive Director and the Finance Manager shall evaluate and consider the following factors in analyzing, reviewing and recommending the issuance of obligations before presenting a proposal to the Board: 1. Purpose, feasibility and public benefit of the project 2. Impact on debt ratios generally applied by rating agencies 3. Availability of appropriate revenue stream(s) 4. Requirements for and costs of a vote for approval of the financing 5. Aggregate debt burden upon the District's tax base, including other entities' tax supported debt 6. Analysis of financing and funding alternatives, including available reserves from other District funds 7. Opportunity costs of District resources being deployed on the project 8. If refinancing: the net present value savings, size of issue, absolute dollar savings, and number of years remaining on outstanding obligations Operating Budget Monitoring and Control Department managers have primary responsibility for the control of budgeted expenditures, the collection of budgeted revenues and the delivery of service in accordance with the adopted work plan. Department managers are responsible for identifying significant changes in the work program, spending, or revenue variances. The Finance Division is responsible for monitoring the implementation of the District's adopted annual budget. The Finance Division will review monthly actual expenditure and revenue reports compared to the budgeted amounts. Apex Park and Recreation District Budget Summary 9

18 Basis of Budgeting and Accounting The basis of budgeting and accounting refers to when a transaction or related event is recognized in an agency s budget, or in the operating statement, both of which follow GAAP principles. All governmental funds (including the general, debt service and capital projects funds) use modified accrual as both the basis of budgeting and for accounting/financial reporting. Under the modified accrual system, revenues are recognized in the accounting period in which they become measurable and available. Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The District considers all revenue available if they are collected within 60 days after year-end. Property tax is reported as a receivable and deferred revenue when the levy is certified and as a revenue when due for collection in the subsequent year. An allowance for estimated uncollectible taxes is included in the estimated tax needed to balance the budget. Conversely, GASB Statement 34 requires that accounting and financial reporting include statements reported from a government-wide perspective using a full accrual basis. Expenditures are generally recognized when the associated liability is incurred, with the exception of accumulated unpaid vacation and sick pay and pre-paid expenses, which are recorded on the balance sheet and recognized in the applicable period. The basis of accounting for proprietary funds is full accrual, where revenues are recognized when earned and expenditures when they are incurred. The basis of budgeting for proprietary funds is full accrual with the exceptions of depreciation and amortization. For capital assets and capital purchases, funds are budgeted from a perspective of the actual cash outlay required (cash basis). From the accounting/financial reporting side, these are recorded as capital assets on the balance sheet and depreciated (expensed) over the nominal useful life of the asset, which is expensed. Since depreciation is not budgeted, the budgeting controls are removed for this account only to allow the transactions to occur. Contingency, Emergency and Undesignated Reserves Fund reserves can be restricted or assigned for specific purposes, the remaining amount is considered unrestricted. There are two restricted and one assigned amounts in the 2017 budget for fund balance: Restricted TABOR Reserve- the Colorado State Constitution, Article X, Section 20, requires local governments to establish an emergency reserve to be used for declared emergencies only. The reserve is calculated at 3% of fiscal year spending. Fiscal year spending, excluding bonded debt services, conservation trust and enterprise spending when the enterprise receives less than 10% of its annual revenue in grants from all state and local governments combined. The total restricted for Tabor for 2017 Budget is $428,898. Restricted COP Reserve- the Certificates of Participation issued in 2010, require an average of minimum lease payments of $269,050 to be held in a restricted account. 10 Budget Summary Apex Park and Recreation District

19 Assigned-The newly approved Fiscal Policies requires two months of the General fund s expenditures be assigned for emergencies and in case of any financial hard times. For 2017, the assigned amount is $2,118,190. Unrestricted- This leaves a projected $3,163,946 in unassigned fund balance for the General Fund. Awards and Accomplishments The District was awarded its first Distinguished Budget Award for its 2016 Budget from the Government Finance Officer Association. This 2017 Budget is intended to meet those same standards for the award. Apex Park and Recreation District Budget Summary 11

20 What is the 2017 Budget? The District s 2017 budget is showing an increase in revenue of 15% and increase in expenditures, but without the bond expenditures reduced by 0.4%, this reduction is reduced spending on capital outlay. This savings is going to future needed projects. The major expenditure increase impacting the 2017 is employee expenses, which are described in detail below: Employee expense changes For the 2017 Budget, there are several proposals regarding employee expenses. Several are due to District growth. Others are from a consumer price index increase and a change in Federal labor laws. Below are the changes for full time and part time staff: Full time With the growth of the District there are some needed new positions. Some positions start later with the transition of the bond projects coming on Board. See the table below with the new positions and start date along with the added budgetary costs for 2017 (salary, taxes, pension): General Fund $286,838 with cost savings of $212,454 Total Payroll Cost Department Job Title - Current (wages, taxes and pension) Notes Admin HVAC Technician 91, This will decrease at least $74,000 in expenses for outside contractors to the total expense impact is only $17,000 Apex Center Overnight Hospitality 36, Non-exempt $32,000 manager Aquatics Aquatics Coordinator 44, Non exempt, salary $47,476 with March start Admin System Administrator IT 51, Salary of $60,000 and an April start date Generalist Admin Deputy Director 62, Salary of $110,000 with a July 1 start date Golf Indian Tree Restaurant Full time cook Golf Fund $70,251 with cost savings $43,251 31, Non-exempt-salary $33,000 with March Start date. Part of this expense is offset by part time wages savings. This position replaces three part time staff positions. Golf Assistant Golf professional 38, Non-exempt- STILL BEING DETERMINED FOR PAY for commission for lessons which will generate revenue. We performed a market survey of 50% of our full-time positions and the ones that were not included in the adjustment, just described above. Those that came in higher than their current range, will be adjusted to the new minimum and the same range percentage adjustment for all 12 Budget Summary Apex Park and Recreation District

21 staff within the range. The full-time staff not receiving one of the above range adjustments will receive a 2% Consumer Price Index raise if they are not at their salary cap starting July 1, To address merit, those FTE will also be eligible for a merit raise of 0%-3% depending on performance with department heads allocating all employees in their division to a maximum overall increase of 1.5%, starting July 1, Below are the three wage changes, one of which will affect each full-time employee, and the total additional costs (wages, taxes and pension) for the General and Golf funds. Part time Most increases in part time wages that are not raise related, are tied to increases in revenue except for an increase for part time hours for human resources and additional part time hours for guest services at the Community Recreation Center and Simms Street Center. Part time wages will be adjusted for potential minimum wage requirements. The raise for part time employees will happen in two parts, first the minimum wage will be adjusted to $9.31 an hour and all rates below $11.00 will be adjusted by the same percentage change and will begin January 1, This will change pay ranges for these specific job rates as well. Second, job rates above $11.00 will receive a 3% consumer price index raise up to the job rate maximum starting July 1, Below are the two raise impacts for part time staff and total additional costs (wages and taxes) for the two fund budgets: Apex Park and Recreation District Budget Summary 13

22 Budget summary and predicted fund balance Estimated revenues, expenditures and fund balance for all District funds are on the following schedule. 14 Budget Summary Apex Park and Recreation District

23 2017 Budget Summary Governmental Conservation Debt District General Trust Capital Service Golf Total Estimated Revenues Taxes $ 5,045,935 $ 590,000 $ 742,199 $ 2,066,544 $ - $ 8,444,678 Charges for services 7,957, ,991,879 9,949,587 Intergovernmental 3, ,200 2,100,000-2,545,190 Miscellaneous 92, ,000 2, ,889 Total revenue 13,100, ,320 1,183,399 4,231,544 1,994,008 21,099,344 Budgeted Expenditures Employee expenses 8,136, ,117 98,089 1,119,011 9,476,945 Operating supplies 1,376,084 76,652 75, ,070 2,111,806 Intergovernmental agreement 828, ,708 Purchased services 1,830, ,750 2,042,277 Taxes and fees 229, , ,617 Capital Outlay - 881, ,645 24,800,000-26,623,143 Debt leases and obligations 269, ,045,625 63,619 2,378,294 Miscellaneous 38, ,120 Total expenditures 12,709, ,150 1,139,762 26,943,714 2,012,145 43,762,910 Net operating surplus (loss) 390,934 (367,830) 43,637 (22,712,170) (18,137) (22,663,566) Other Financing Sources , Budget Basis Fund Balance Estimated beginning fund balance 1/1/2017 5,589, , ,610 31,101, ,499 38,001,740 Estimated ending fund balance 12/31/2017 $ 5,980,084 $ 59,309 $ 567,247 $ 8,624,653 $ 342,362 $ 15,338,174 Restricted fund balance 697,948 59, ,247 8,624,653-9,949,157 Assigned 2,118, ,118,190 Unrestricted fund balance $ 3,163,946 $ - $ - $ - $ 342,362 $ 5,389,017 Apex Park and Recreation District Budget Summary 15

24 Fund Summaries

25 Fund Summaries Overview The purpose of fund summaries is to capture and detail the financial condition of each District fund. A fund summary provides information on revenues, expenditures and ending funds available. In addition, it functions as a planning mechanism, as it allows expenditures to be matched to available revenues and/or fund balance. Fund summaries also identify components of funds available and anticipated uses. The summary parts have five columns: one year of actual data (2014), one projection year (2016), one year of the original adopted budget (2016), one for the final budget (2016) and the current budget year (2017). The fund summary is a detailed summary of sources and uses. Sources include revenues, transfers in and decreases in funds available. Uses include expenditures, transfers out and increases of funds available. It is important to note that sources and uses are always balanced because a fund s sources either are expended, become restricted, committed or assigned, or become unrestricted (unreserved or undesignated) funds available. As described in the Budget Summary the District funds can be divided into two categories: governmental funds and proprietary funds. Governmental funds have four funds including the main General fund and there is one proprietary fund. The Apex Recreation Center was accounted for in previous years as an enterprise fund, funds that account for activities that are often seen in the private sector and are operated in a similar manner as in the private sector. Below is the funding structure in 2016: This Apex fund has operated to be self-sufficient but not to cover costs in the matter of accrual accounting covering costs such as depreciation. This fund will be eliminated and the Apex Recreation Center will be a department accounted for in the General fund. The fund description, 2016 estimates and 2016 budget revision is presented. Below is the funding structure for the District going forward: Apex Park and Recreation District Fund Summaries Overview 17

26 By maintaining separate funds, the District is able to comply with laws that require certain money to be spent for specific purposes. Below is the diagram showing the revenue streams flow into the different funds: 18 Fund Summaries Apex Park and Recreation District

27 General Fund General Fund Summary The General fund is the largest fund and the chief operating fund of Apex Park and Recreation District. It includes all resources not restricted legally to a specific use. There is a large change from the 2016 to the 2017 with the inclusion of the former Enterprise Apex Fund, the fund that accounted for the Apex Center operations, is now included. Budgeted Original Proposed 2017 Actual Estimated Budget Final Budget Proposed Revenues Taxes: Property $ 4,040,423 $ 4,414,447 $ 4,231,600 $ 4,231,600 $ 4,465,952 Ownership 590, , , , ,000 Payment in lieu of taxes 4, ,983 Intergovernmental 9,498 4,132 4,131 4,131 3,990 Charges for services 3,377,073 3,433,684 3,418,191 3,418,191 7,716,031 Merchandise/Concessions/Vending 46,130 48,443 55,465 55, ,677 Donations/Corporate sponsorships 58,723 70,000 36,540 36,540 35,540 Interest 14,835 33,000 10,000 10,000 30,000 Miscellaneous 3,669 4, ,900 Total Revenues 8,146,195 8,623,042 8,260,507 8,260,507 13,100,073 Expenditures General government 2,710,279 3,050,330 2,956,419 2,941,919 3,514,594 Raquet Sports 465, , , , ,158 Recreation services 2,952,628 2,911,724 3,229,203 3,229,203 3,125,268 Community center 498, , , , ,357 Aquatics 786, , , , ,482 Apex Center ,047,280 Total Expenditures 7,413,477 7,722,734 8,004,047 7,989,547 12,709,139 Excess of revenues over expenditures 732, , , , ,934 Other financing sources (uses) Transfers out (612,090) (564,500) (550,000) (564,500) - Total Other financing sources (uses) (612,090) (564,500) (550,000) (564,500) - Net changes in fund balances 120, ,808 (293,540) (293,540) 390,934 Fund balances- January 1 4,286,054 4,406,682 4,130,815 4,406,682 5,589,150 ** Fund balances- December 31 $ 4,406,682 $ 4,742,490 $ 3,837,275 $ 4,113,142 $ 5,980, Budget Resolution APRD passed 2/18/16 Apex fund now part of General Fund ** Apex fund beginning balances added Apex Park and Recreation District General Fund 19

28 General Fund Financial Summary The General fund now includes the Apex enterprise fund. For the sake of comparison Apex information will be added for the trends. Below is the Apex Fund information for previous years that will be combined for the General Fund analysis: Original Proposed Actual Actual Actual Estimated Budget Final Budget Revenues Charges for Services 3,850,754 3,921,800 4,041,734 4,341,871 4,066,640 4,341,871 Corporate Sponsorships 4,987 12,621 1, Miscellaneous (76) 1,371 2,519 4, ,095 Total Revenues 3,855,665 3,935,792 4,045,357 4,345,966 4,066,940 4,345,966 Expenses Personnel Services 2,573,601 2,623,709 2,560,401 2,785,639 2,776,860 2,788,360 Operating Supplies 525, , , , , ,380 Purchased Services 744, , , , , ,137 Fixed Charges 17,909 16,379 9,310 9,563 9,560 9,560 Miscellaneous - 6,154 20, Capital Outlays 145 1,000 2, , ,000 Total Expenses 3,861,611 3,971,250 3,928,040 4,294,814 4,157,937 4,319,437 Other financing sources Transfers in ,500-11,500 Total Other financing sources ,500-11,500 Net Income - Budget Basis (5,946) (35,458) 117,317 62,652 (90,997) 38,029 Budget Resolution APRD for additional appropriation to cover $150,000 emergency cost for repair to Ice Chillers Budget Resolution APRD passed 2/18/16 in creased personnel costs $11,500 and transferred $11,500 from the General Fund Revenue Trends Revenue has steadily increased for the last five years (2016 is estimated). Property taxes are returning to pre-recession levels, and will continue to increase in. Charges for services has increased, which is also a reflection of the improving economy. See the trends illustrated below (**2016 is estimated): 20 Fund Summaries Apex Park and Recreation District

29 Major Revenue Sources The major source of revenue for the fund is charges for services with 61% followed by property tax, which is approximately 39% of the fund revenue for the proposed 2017 budget. The 2017-projected revenue by source is pictured below: Charges for Services These are the program and admission fees for the programs in the general fund. This year there is a large addition with the Apex fund. This category also includes vending and concession revenue. You can see the detail of this revenue Division/Program Detail section starting on page 36. This source moved to number one with the transition of Apex fund to the General fund. Taxes The District s Board of Directors levies property taxes. The levy is based on assessed valuations determined by the County Assessors as of January 1 of each year. The levy is normally set December 15 by certification to the County Commissioners to put the tax lien on the individual properties as of January 1 of the following year. The County Treasurers collect the determined taxes during the ensuing calendar year. The taxes are payable by April, or if in equal installments, at the taxpayer's election, in February and June. Delinquent taxpayers are notified in August and sales of the tax liens on delinquent properties are normally held in November or December. The County Treasurers remit the taxes collected monthly to the District less a 1.5 % collection fee. The annual budget for Property taxes is based on the assessed valuation received from each county and the historical collection rate. There are three levies for the District one for Debt (see Debt fund on page 27), General operating and an additional levy split between the Apex Park and Recreation District General Fund 21

30 General Fund and the Capital fund (see capital fund on page 25). The General fund levies for the last ten years are pictured below with the amount assessed: Show summary of the taxes Year Net Assessed Mill Abates General Tax ,160,085, ,693, ,232,344, ,917, ,278,740, ,021, ,269,442, ,987, ,273,739, ,007, ,229,031, ,861, ,240,912, ,903, ,257,503, ,949, ,266,180, ,984, ,498,692, ,425, ,499,391, ,427,703 Operating grants, donations and contributions The District receives donations and contributions to aid in its mission. The District occasionally receives grants that are for specific expenses, programs or capital expenditures. Other revenue This category includes interest from investments and other miscellaneous revenue. Expenditures Trends Expenditures for the General fund cover the General government, Fitness, Recreation services, Community Center, Aquatic programs and the Apex Center. General government has increased by taking on maintenance cost for the Apex Center since they are no longer a standalone enterprise fund. See spending trends below: 22 Fund Summaries Apex Park and Recreation District

31 Major Expenditures The proposed 2017 budget of the major expenditures for these programs by source are as follows with Employee expenses making up 64% followed by Purchased Services with 14% and operating supplies Agreements at 11%: Employee Expenses The biggest expense for General fund programs is employee expenses with 64% of the total expenditures. This includes salary of both full-time and part-time staff. Benefits are the other portion of these expenditures with insurance and retirement contributions for full time staff. As described in the budget summary on pages 12 to 14, there were different types of wages increases starting in 2016 to July Purchased Services Purchased services, totaling 14% of the fund s expenditures, are for programs that are provided by a third party. This includes professional services, utilities and insurance. Operating Supplies These are supplies purchased for programs and administration functions to help the district work toward its mission being 11% of the fund s expenditures. Intergovernmental agreements These are the expenses for the agreement with the City of Arvada for field maintenance. This expense will be shown in detail in the division sections. The makes up 7% of the General Fund s expenditures. The 2017 budget for the entire IGA is below: Apex Park and Recreation District General Fund 23

32 2017- IGA Budget Site/Division Equip/Labor Maint/Mat. Prof. Serv. Utilities Total Arvada Tennis Center 5, ,478 8,614 Fitness Wellness Center Division Total 5, ,478 8,614 George Meyers Pool 11, ,191 1,851 15,678 Lake Arbor Pool 9,964 1, ,281 13,991 Division Total 21,195 1,436 2,906 4,132 29,669 District Service Center 30,525 3,354-11,675 45,553 Community Recreation Center 7, ,453 Secrest Recreation Center 21,435 2, ,818 Foster Ballfields 6, ,075 Long-Lake Ranch 84,992 21,624 6,104 65, ,473 Lutz Sports Complex 126,728 25,727 6,776 37, ,535 Pioneer Sports Park 29,062 3, ,821 45,672 Ralston Addition 21,034 1,388 1,075 7,434 30,930 Stenger Soccer Park 139,114 33,921 3,961 6, ,976 Youth Memorial 46,802 8, ,092 67,936 Division Total 476,001 97,856 20, , ,415 Total 2017 $ 540,780 $ 103,510 $ 23,747 $ 160,669 $ 828,705 Miscellaneous Small or one-time expenses that do not apply to the above categories. Other fund uses and Sources The District issued Certificates of Participation for $3,645,000 evidencing proportionate interests in base Rental and other revenues under an annually renewable Lease Agreement with UMB Bank, N.A., Trustee and the District dated October 15, These certificates carry interest rates from 2% to 4.5% due semi-annually. The certificates mature beginning in 2011 and continue through The proceeds from these certificates were used to partially fund the construction of an indoor sports facility featuring two indoor turf arenas. The following table illustrates the future payments: December 31 Principal Interest , , , , , , ,000 95, , , ,175, ,125 Total $ 2,780,000 $ 954, Fund Summaries Apex Park and Recreation District

33 Capital Fund Capital Fund Summary This fund is used to account for property tax revenue legally restricted by the qualified electors of the District for maintenance and capital improvement projects to District facilities. This fund will include any operating revenue designated for projects and any intergovernmental or grant funding. The capital tax levy is below for the last ten years: Year Net Assessed Levy Capital Taxes ,160,085, , ,232,344, , ,278,740, , ,269,442, , ,273,739, , ,229,031, , ,240,912, , ,257,503, , ,266,180, , ,498,692, , ,499,391, ,199 The details for the projects for this fund are described in the Capital project Plan, starting on page ##. The major change is the Special Projects Manager s salary is being allocated to the fund since all of the duties are for this fund s and the Conservation s fund projects. The budget summary for the fund is below: Budgeted Original Proposed 2017 Actual Estimated Budget Final Budget Proposed Revenues Property 629, , , , ,199 Intergovernmental Grants 118, , , ,000 Total Revenues 748, ,414 1,178,266 1,178,266 1,183,399 Expenditures Personnel expenses ,117 Operating expenses 11,779 75,000 70,000 70,000 75,000 Capital outlay 1,088, ,525 1,760,000 1,760, ,645 Total Expenditures 1,099, ,525 1,830,000 1,830,000 1,139,762 Excess (deficiency) of revenues over (under) expenditures (351,034) (226,111) (651,734) (651,734) 43,637 Other Financing Sources Transfers in 550, , , ,000 - Total Other Financing 550, , , ,000 - Net changes in fund balances 198, ,889 (101,734) (101,734) 43,637 Fund balances- January , , , ,610 Fund Balances - December , , , , ,247 Apex Park and Recreation District Capital Fund 25

34 Conservation Trust Fund Conservation Trust Fund Summary This fund is used to account for lottery proceeds from the State of Colorado that are legally restricted to expenditures for capital improvements or maintenance for recreational purposes. The projects for this fund our reported to the Colorado Department of Local Affairs following the end of each year. The funding can vary year to year depending on the lottery funding. In 2014 we received a portion of Jefferson County s funds making that year higher and in 2016 we had larger quarterly payment than normal due to higher lottery revenues being distributed. The District makes a conservative guess on the funding for budget purposes which has allowed for unexpected capital projects to easily funded. The details for the projects for this fund are described in the Capital project Plan, starting on page ##. The budget summary for the fund is below: Budgeted Original Proposed 2017 Actual Estimated Budget Final Budget Proposed Revenues Intergovernmental 616, , , , ,000 Interest Total Revenues 616, , , , ,320 Expenditures Operating expenses 22,056 61,000 56,000 61,000 76,652 Capital outlay 915, , , , ,498 Total Expenditures 937, , , , ,150 Excess (deficiency) of revenues over (under) expenditures (321,069) (4,613) (165,200) (4,670) (367,830) Net changes in fund balances (321,069) (4,613) (165,200) (4,670) (367,830) Fund balances- January 1 752, , , , ,139 Fund Balances - December , , , ,082 59,309 **Budget Resolution APRD to increase appropriation for 2015 projects that carried over in to 2016 spending with fund balance and additional revenue to cover 26 Fund Summaries Apex Park and Recreation District

35 Debt Service Fund Debt Service Fund Summary The Debt Service fund accounts for the accumulation of resources and payments of general obligation bond principal and interest from governmental resources. Property taxes are assessed to cover the annual debt service payments for all voter approved General Obligation Debt. This fund accounts for property tax collections for the payment of principal & interest payments, and associated costs for the most recent general obligation bond issue in The annual budget for property taxes is based on the assessed valuation received from each county and the historical collection rate. Other expenditures are budgeted using historical information. On Tuesday evening, May 3, Apex Park and Recreation District announced preliminary results for the mail ballot election. Voters approved the ballot question proposing the renovation and construction of six facilities in various locations around the district. 14,294 voted yes on Issue A and 9,199 voted no passing the bond issue to renew the existing $25 million Apex Center bond for 20 years. Additional funding for the projects comes from the City of Arvada for $3.1million and the rest will be covered by transfers from the General Fund. The District received a Aa2 bond rating from Moody s August The debt tax levy is pictured below for the last ten years with the last bond issuance first and the new bond issuance pictured after: Year Net Assessed Debt Mill Debt Tax Year Net Assessed Debt Mill Debt Tax Jefferson County Series Debt and 2016 new Jefferson County Series Debt Only ,160,085, ,133, , ,232,344, ,214, , ,278,740, ,106, ,269,442, ,093,311 Jefferson County Series Debt Only ,273,739, ,092, , ,229,031, ,091, ,240,912, ,180,284 Broomfield Debt series Only ,257,503, ,174, ,511, , ,266,180, ,120, ,036, , ,498,692, ,116, ,196, , ,499,391, ,049, ,877, , ,088, , ,625, , ,746, , ,497, , ,921, , ,794, , ,195, , Total Debt Levy and tax ,066,544 Apex Park and Recreation District Debt Service Fund 27

36 Debt Service Fund Budget The 2016 original budget is being revised due to the bond issuance approved in May 2016 and offered in September The 2017 Budget is based on the bond schedule for the project expenditures, debt payments and tax estimates based on the District assessments for the mill levy. Budgeted Original Proposed 2017 Actual Estimated Budget Final Budget Proposed Revenues Property Taxes 2,159,510 2,124,928 2,151,498 2,124,928 2,066,544 Interest - 30,000-30,000 65,000 City of Arvada - 1,000,000-1,000,000 2,100,000 Total Revenues 2,159,510 3,154,928 2,151,498 3,154,928 4,231,544 Expenditures Personnel Expenses ,089 Capital Outlay - 100, ,000 24,800,000 Principal 2,010,000 2,100,000 2,100,000 2,100, ,000 Interest and fiscal charges 200, ,951 72, ,951 1,145,625 Debt Issuance costs - 241, ,000 - Total Expenditures 2,210,202 2,745,951 2,172,300 2,745,951 26,943,714 Excess (deficiency) of revenues over (under) expenditures (50,692) 408,977 (20,802) 408,977 (22,712,170) Other financing sources (uses) Proceeds from debt 5,010,000 25,000,000-25,000, ,481 Premium - 5,636,161 5,636,161 Payment to escrow agent (4,969,413) Total Other financing sources (uses) 40,587 30,636,161-30,636, ,481 Net changes in fund balances (10,105) 31,045,138 (20,802) 31,045,138 (22,476,689) Fund balances- January 1 66,309 56,204 45,507 56,204 31,101,342 Fund Balances - December 31 56,204 31,101,342 24,705 31,101,342 8,624,653 ** Budget Resolution APRD to increase appropriation for 2015 projects that carried over in to 2016 spending with additional revenue to cover due to bond issuance Debt Schedule Below is a listing of the current outstanding general obligation bonds and the payments due for The District will be making its final payment on the bonds outstanding, 2015 series; Date Principal Coupon Interest Total Debt Service 6/1/2017 5, /1/ , % 5, , TOTAL 900, , , Fund Summaries Apex Park and Recreation District

37 The schedule for these bonds, 2016 series is: Date Principal Coupon Interest Total Debt Service 12/1/2017 1,100, ,100, /1/ , % 1,100, ,030, /1/ , % 1,082, ,027, /1/ , % 1,063, ,028, /1/ , % 1,034, ,029, /1/2022 1,015, % 1,014, ,029, /1/2023 1,055, % 974, ,029, /1/2024 1,105, % 921, ,026, /1/2025 1,140, % 888, ,028, /1/2026 1,185, % 842, ,027, /1/2027 1,245, % 783, ,028, /1/2028 1,310, % 721, ,031, /1/2029 1,375, % 655, ,030, /1/2030 1,440, % 586, ,026, /1/2031 1,515, % 514, ,029, /1/2032 1,590, % 439, ,029, /1/2033 1,670, % 359, ,029, /1/2034 1,750, % 276, ,026, /1/2035 1,840, % 188, ,028, /1/2036 1,930, % 96, ,026, TOTAL 25,000,000 14,643, ,643, Bond projects The following are the projects approved for this debt issuance (See Capital Plan on page 57 for further discussion): Secrest Center (6820 W. 66th Ave.): Construct 21,521+ sq. ft. replacement recreation center to include small weight room, community/aerobics area teen center, small gym, locker rooms, warm water therapy pool. Swimming pool and inline hockey rink will remain. Fitzmorris Site Center/Pool (Independence St. and W. 62nd Pl.): Construct 8,500+ sq. ft. recreation center, six lane pool to include small weight room, community/aerobics area. Arvada Tennis Center (6430 Miller Street): Renovate eight outdoor courts with post tension surfaces, new lights, fences. Addition of facility with four new indoor courts and controlled access to all areas of the tennis complex. Lutz Sports Complex Improvements (10664 W. 58th Ave.): Construct a new four-field baseball/softball pod complex with lighting, parking, restroom/concession. Apex Center (13150 W. 72nd Ave.) Renovation, Splash Pad Addition: Construct 7,800 sq. ft. outdoor splash pad, renovate aquatics area center pool, renovate indoor playground. Apex Park and Recreation District Debt Service Fund 29

38 Long Lake Ranch Regional Park Improvements (17850 W. 64th Ave.): Construct two new baseball/softball fields, including backstops, to complete the first five-field complex, lighting for all five baseball/softball fields; construct a restroom/concession building. Construct two new synthetic multi-sport turf fields (lacrosse/rugby/football), with parking and lights. 30 Fund Summaries Apex Park and Recreation District

39 Golf Fund Golf Fund summary This enterprise fund accounts for operations of the Indian Tree Golf Course to the public. See specific operations information in the Division Summary section. Golf Fund Financial Summary Budgeted Original Revised 2017 Actual Estimated Budget Final Budget Proposed Revenues Charges for Services 1,946,049 1,935,191 1,961,613 1,961,613 1,991,879 Corporate Sponsorships Miscellaneous 6,802 1, ,129 Total Revenues 1,953,821 1,936,191 1,962,013 1,962,013 1,994,008 Expenses Personnel Services 1,010,989 1,009,220 1,041,493 1,045,493 1,119,011 Operating Supplies 588, , , , ,070 Purchased Services 207, , , , ,750 Fixed Charges 28,028 28,754 31,547 31,547 33,695 Miscellaneous 7, Capital Outlays 4, Total Expenses 1,847,148 1,805,473 1,898,108 1,902,108 1,948,526 Excess of revenues over expenditures 106, ,718 63,905 59,905 45,482 Other financing sources (uses) Capital lease (63,619) (63,619) (63,619) (63,619) (63,619) Transfers in 62,090 4,000-4,000 - Total Other financing sources (uses) (1,529) (59,619) (63,619) (59,619) (63,619) Net Income- Budget basis 105,144 71, (18,137) 2016 Budget Resolution APRD passed 2/18/16 Apex Park and Recreation District Golf Fund 31

40 The Golf fund has been improving but this trend is predicted to discontinue its progress in 2017 with rising costs and a predicted slight revenue reduction. Below is the data from the last four years, 2016 estimates and the predicted 2017-year: Revenue Trends Revenue for the fund is based on charges for services, which includes vending and concessions. Other sources are minimal percentage wise but include corporate sponsorships and other miscellaneous revenue. Over the last five years (**2016 estimated) and the current 2017 budget, revenue has had some declines with replacement of the irrigation system and recent gains see trends below: 32 Fund Summaries Apex Park and Recreation District

41 Expenditures Trends Similar to the General fund employee expenses make up the largest part of expenditures for the fund. Expenditures have steadily decreased and rose slightly in 2016 with a larger increase for See expenditure trend pictured below (**2016 is estimated): The average percentage of each expenditure category for the 2017 budget showed Employee expenses as the major expenditure category with 57% followed by Operating supplies with 30%. As described in the budget summary on pages 12 to 14, there were different types of wages increases starting in 2016 to July 2017 along with two new full time employees for the fund. Apex Park and Recreation District Golf Fund 33

42 Golf Cart Lease Schedule The District has one lease agreement in business-type activities (Golf Fund) for financing the acquisition of golf carts for the Indian Tree Golf Course. This lease agreement qualifies as a capital lease for accounting purposes and is recorded at the present value of the future minimum lease payments as of the inception date. See the scheduled payments for the golf carts lease below: DATE PAYABLE INTEREST INTEREST PAYMENT RATE PAYABLE DUE 5/15/2017 $59, % $3, $63, /15/2018 $61, % $1, $63, TOTAL $121, $5, $127, Fund Summaries Apex Park and Recreation District

43 Department Detail

44 Overview The Division/Program detail section contains all agency budgets and a description of services. The Division and Agency Summaries include goals for the coming year and the resources dedicated to achieve those goals. The Division sections are organized into the following functional areas: Each Division will have a summary of operations and any performance goals or projects. Then the budget information for the Division All the Departments except for Indian Tree Golf course, which is funded by the Golf fund, are funded by the General fund. 36 Division Summaries Apex Park and Recreation District

45 Administration Department Overview The Administration Department is to support the mission of the District by facilitating the effective and efficient delivery of services at each of the Department's organizational divisions through assisting with planning and policy development and coordinating administrative functions and systems. Funding is from the general fund. The Department is made of the following divisions: Administration This is the function of the Executive Director and the Board of Directors. The set the mission, strategic plan and ultimately approve the District Budget each year. This also where the General Fund taxes are budgeted and accounted for along with the interest of the District s investments controlled by Finance. Finance The division performs the accounting, finance, budget, risk management and human resource functions for the District. Recently they updated the Districts Payroll/HR system and is working to make all processes paperless. The team has received the Government Finance Officer Association award for excellence in Financial reporting since 1993 and received its first Distinguished Budget Award for the 2016 Budget Book. Marketing The division s goals are to increase awareness, visibility and positive connections in the community. Strategies include developing and enhancing the district s visual and experiential brand; cultivating a deeper and broader media presence; and building new and existing sponsor relationships. In 2017 the district is on the threshold of a dynamic new phase in its history, preparing to launch six voter-approved projects and increase its stature as the premier community recreation provider in the community. A key part of that forward momentum is a repositioned Marketing Division. It is now a strong presence in strategic long-term planning, branding and building greater visibility within and benefit to the community. Technology Services Oversees, manages and maintains the District s computer, networked device and telecommunications systems. This includes project planning, product evaluation, installation, training, troubleshooting and development of internal applications and technical processes. District Services District Services is charged with all District maintenance and all capital projects. Maintaining all the District s facilities and fields to ensure safety, efficiency and that facilities are great place for our citizens and patrons. Apex Park and Recreation District Division Summaries 37

46 Guest Services Guest Services aims to provide quality customer service in the areas of district program registration, facility reservations, pass sales, admissions, and general Apex Center and district information. Guest Services fields a variety of questions and registrations on a daily basis, therefore staff are well versed in all aspects of Apex Park and Recreation District programs and facilities in addition to Apex Center programs and operations where the staff are stationed and report administratively to. Vehicle Maintenance Reporting to the Golf Operations Manager, this division provided general and routine maintenance to these vehicles in a timely and efficient manner, being cost effective and to maintain a safe working condition, which includes annual/semi-annual oil and filter changes, tire rotations, brake service, diagnostics, visual inspections, etc. Currently, the District operates with twenty- eight licensed vehicles at six different locations Performance Measurements and Goals Finance will continue to go for the Government Finance Officer Association s award for Excellence in Financial Reporting and Distinguished Budget. The effort to become paperless will continue to until, 80% of process are electronic. The Employee Handbook and Human Resource Policies will be updated and formally adopted by fall of Technology Services will be implementing either an upgrade or new Recreation Management Software for the District in The entire Administration function is looking to increase efficiency and reduce waste and duplication of efforts. Significant Changes in 2017 Administration added some new roles starting in the second half 2016, and has some funding changes for 2017, with the addition of the Deputy Director of District Services and a reorganization, and the reorganization of Marketing. Technology Services is adding one FTE, the potential introduction, management and implementation of new Recreation Management Software and the implementation of a Help Desk support ticket system. Finance expanded a part time positon accounting technician into a full-time position due to rising volume with District expansion. With the additional funding of the bond the Deputy Director of District Services will be overseeing the projects allowing for a portion of the salary to go to the Debt fund. Also, the Director of Special projects salary will be funded out of the Capital fund since all the time is allocated to those projects. All the Human Resource functions of the new system will be coming online increasing contracted service expenses. 38 Division Summaries Apex Park and Recreation District

47 2017 Budget Summary FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Taxes 4,636,268 4,868,710 5,029,082 4,963,836 5,045,935 Grants 1, Charges for Services 17,078 17,370 18,841 17,500 19,000 Program, League & Assoc Fees , Other Miscellaneous Income 46,337 53,037 42,222 28,000 50,000 Interest 14,835 31,849 25,762 10,000 30,000 Total Revenue 4,716,387 4,971,622 5,130,876 5,019,886 5,145,585 Expenditures Employee Expense 1,540,833 1,366,754 1,523,451 1,568,852 2,014,315 Operating Expenses 364, , , , ,885 Intergovernmental Agreement 44,216 25,223 45,948 48,605 45,554 Total Purchased Services 262, , , , ,070 Total Taxes and Fees 209, , , , ,600 Operating Transfer In/Out 607,283 15, , ,500 - Capital Outlay - 5,455 5, Debt Proceeds 150, , , ,000 Premium/Discount 115, , , ,050 Other Expenses 26,169 23,384 36,011 34,550 38,120 Total Expense 3,321,885 2,495,780 3,600,331 3,561,177 3,514,594 Net Surplus (Deficit) 1,394,502 2,475,842 1,530,545 1,458,709 1,630,991 Apex Park and Recreation District Division Summaries 39

48 Racquet Sports and Fitness Department Overview The Racquet Sports and Fitness Department is funded through the general fund. The department consists of three divisions Racquetball and Fitness Center, Arvada Tennis Center and Therapeutic Recreation. Racquetball and Fitness Center The RFC has eight racquetball/handball courts, cardiovascular and weight equipment, and a group exercise room. We offer one of the most affordable and comprehensive racquetball programs in Colorado. The RFC hosts State Championships and sanctioned tournaments, lessons, shuttles, drop-in play, and wallyball. Arvada Tennis Center The Arvada Tennis Center is an eight-court lighted, outdoor facility (year-round, weather permitting) that offers one of the most comprehensive programs in the Denver metro area. Offerings include: Lessons-youth 3.5 years of age to seniors Recreational/competitive junior teams for new/experienced players Wheelchair tennis Seasonal, permanent court time Free tennis every March Adult leagues in conjunction with North Jeffco Tennis Club USTA sanctioned tournaments Special events Pro-shop/racquet stringing service Therapeutic Recreation The Therapeutic Recreation Department is designed to meet the unique needs of people with disabilities using specialized and inclusive programs. Therapeutic Recreation helps people improve and/or gain new recreation, leisure and social skills that will enhance their quality of life. A variety of programs are offered such as one-on-one individual workouts either in the gym or the pool, Saturday bowling, dinner and lunch outings, game nights, Holiday Musical, MS Hydrotherapy and a variety of other social gatherings. These classes are provided to help with socialization, learning how to spend money, while making new friends and have fun. Besides these specialized TR programs, we also offer inclusion. Inclusion is so anyone with a disability can sign up for any class offered in the district and the TR department will provide an aide or extra instructor to help make the participant and the class successful. Recreating with peers with and without disabilities is beneficial for all. 40 Division Summaries Apex Park and Recreation District

49 Performance Measurements and Goals Due to significant and growing competition from the private fitness sector in the Arvada market, the RFC is hoping to match 2016 revenue amounts basically, weather the storm, and try to attract new patrons to offset the attrition of members that are going elsewhere for a variety of reasons. The ATC is most likely going to lose part of the Spring season due to the tennis center bond project which may impact our usage and revenue in Significant Changes in 2017 The Arvada Tennis Center will be under construction until late The 8 outdoor courts should be finished in late spring while the 4-court indoor center will not be finished until the end of This project is exciting, but will also bring some aches and pains to the tennis program and tennis community as we navigate through the project. The 2017 budget numbers will be very close to the estimated 2016 final numbers. We are looking at limited revenue growth due to several months of down time at the ATC Budget Summary FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Charges for Services 102,462 95, , , ,000 Program, League & Assoc Fees 175, , , , ,200 Merchandise & Concession sales 6,879 6,020 8,100 8,800 8,100 Other Miscellaneous Income 982 1,303 1, Total Revenue 286, , , , ,300 Expenditures Employee Expense 358, , , , ,299 Operating Expenses 47,239 31,845 47,152 48,795 46,325 Intergovernmental Agreement 16,361 4,612 8,518 9,221 8,614 Purchased Services 42,715 35,354 46,115 45,169 46,920 Taxes and Fees Total Expense 465, , , , ,158 Net Surplus (Deficit) (179,368) (123,601) (159,950) (168,234) (187,858) Apex Park and Recreation District Division Summaries 41

50 Recreation Services Department Overview Recreation Services provides services for three facilities and all sports fields. The Department carries out the District s mission through providing recreation programs at the Secrest Center, Apex Field House and Simms Street Center. The Department maintains and organizes sporting events on the District s sports fields. The Department is funded through the General fund. The Department is made of two division sets, REC-FSS and REC-SO, the following is about those divisions and programs: Apex Field House- Rec FSS A world-class facility, built by a collaborative effort, opened in December 2011, this 57,000-sq. foot facility boasts two 30yd x 60yd full size indoor turf fields, a state of the art community conference room, four team changing rooms and a central lobby complete with couches and large T.V. for customer viewing. The building provides wireless internet capability for all customers and spectators. The well-lighted and ventilated fields make a great environment to play sports year-round, no matter the weather. The facility manager along with 4 full time staff members and over forty-part time staffers keep up this a top-notch facility, one that attracts both a youth and adult population. Leagues: Adult Indoor Soccer, Adult Arena Football, Adult Outdoor Soccer, Youth Indoor Soccer, Youth Lacrosse Camps & Clinics: Mighty Mites Youth Soccer, Youth Indoor Soccer Program, Spring and Summer Soccer Camps, Youth Lacrosse clinics, Dual Sport Camps, Youth Bubble Soccer Camp Tournaments: Youth 3v3 Soccer (January), Adult 6v6 Soccer (October), Adult Dodgeball (December) Rental: Fields and Community room are available for hourly rental. Other: Bubble Soccer, birthday party rentals. Apex Simms Street Center- Rec FSS The Apex Simms Street Center was opened in October 2012 and offers a wide range of classes and activities for all ages, from toddlers to seniors. This indoor facility is home to our gymnastic programs, dance programs and the Jan Ekhardt Leisure Arts studio which features many classes in pottery and fused 42 Division Summaries Apex Park and Recreation District

51 glass for the artistic enthusiasts. In May of 2016 the building went through phase three of remodeling with an esthetically more pleasing lobby area with couches and a television, bigger dance studio with viewing area, party room and an expanded pre-tumblers area. If you want to get out and enjoy the great outdoors and love Pickleball this is the place for you. On the South west side of the building Apex Simms Street Center has 24 lighted Pickleball courts that are second to none in the state, along with beautiful xeriscape gardens that surround the courts. 16 courts were built in March of 2015 and to meet the demands of the community the additional 6 were completed in September of Rental: Gymnasium available to rent to private groups and birthday parties, a meeting room and Pickleball courts & Pavilion. Sports- Rec FSS The Youth and Adult sports programs are also managed through the Simms St. Center and include: Adult Softball, Adult Dodgeball, Adult Basketball, Adult Flag Football, Adult Volleyball, Adult Pickleball, Youth Pickleball, Youth Basketball, CARA Volleyball, CARA Track & Cross Country and Youth Flag Football. Classes, Camps & Clinics: Spunky Sportsters, Little Athletes Class, Dinky Dunkers, Itty Bitty Floor Hockey. Tournaments: Volleyball, Softball, Football, Adult Pickleball and Pickleball for Heroes. Secrest Teen Center and Preschool Programs- Rec-SO The Field Maintenance Manager supervises and is responsible for the Secrest Teen and Youth Center and the Creekside Cubs preschool programs at Lake Arbor and Campbell Cottages. It includes classes in Tae Kwan do, Preschool, Summer camps and Teen activities throughout the year. A popular event which might be duplicated in the Aquatics division is the end of Summer Dog Swim. Another Special event is the bike rodeo in the Spring which includes bike safety, bike maneuvers around cones and Safety which includes a free bike helmet for all who attend. This Center will be changing from 2017 to 2018 into a yearround facility and have an indoor therapy pool. These changes are discussed in the Capital Project Plan. Field Recreation and Maintenance- Rec-SO This past year we installed Dug out covers and sunscreens funded by the Apex Foundation, for the Youth Memorial fields. The facility was built in 1983 and for some reason the players were not covered from hot sun and weather conditions. It also included installing concrete floors which helped in daily maintenance. Apex Park and Recreation District Division Summaries 43

52 Performance Measurements and Goals Each year the Recreation services division has a goal to increase revenue 3-10% in our programs. We want to increase participation, find new ways to serve customers and keep within our allotted budget. We strive to spend out of needs, not wants to be able to be as wise as we can with our purchases. Significant Changes in will see more exciting changes to the Simms Street facility which will include a much-needed gymnasium for our sports programming, a health and fitness exercise room and an expansion to the Leisure Arts studio to include a dry craft area for additional programming enhancements. For the new areas added to Simms, we plan on purchasing equipment needed in early/mid-summer and hope to be starting classes and programs in late Summer of With the bond projects the Lutz fields will be reconstructing 4 new ball fields and Long Lake Ranch will be adding two more fields, which will impact revenues for rentals and leagues Budget Summary REC-FSS FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Grants 2, Program, League & Assoc Fees 1,817,335 1,825,982 1,874,057 1,822,800 2,010,850 Merchandise & Concession sales 28,687 28,991 31,645 36,590 43,600 Other Miscellaneous Income 3,041 (2,616) (2,586) - - Total Revenue 1,851,922 1,852,357 1,903,116 1,859,390 2,054,450 Expenditures Employee Expense 1,129, ,671 1,184,192 1,258,596 1,337,166 Operating Expenses 164, , , , ,610 Purchased Services 214, , , , ,700 Taxes and Fees 1,885 1,748 2,952 1,500 1,920 Total Expense 1,511,294 1,237,123 1,598,857 1,726,195 1,800,396 Net Surplus (Deficit) 340, , , , , Division Summaries Apex Park and Recreation District

53 2017 Budget Summary REC-SO FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Program, League & Assoc Fees 589, , , , ,321 Merchandise & Concession sales 9,749 7,090 7,925 9,235 5,062 Other Miscellaneous Income (51) Total Revenue 599, , , , ,383 Expenditures Employee Expense 500, , , , ,971 Operating Expenses 101,522 80,719 86,825 85,292 99,259 Intergovernmental Agreement 744, , , , ,418 Purchased Services 89,921 57,303 65,933 98,500 80,672 Taxes and Fees 1, ,027 1,225 1,552 Capital Outlay 3, Total Expense 1,441, ,879 1,312,867 1,534,986 1,324,872 Net Surplus (Deficit) (841,842) (461,415) (759,202) (908,825) (815,489) Apex Park and Recreation District Division Summaries 45

54 Community Recreation Center Department Overview The Community Recreation Center has been serving the recreational needs of adults and seniors since Currently hosting over 200 different activities each session, the Center strives to meet the diverse needs of adults age 18 and over, with our daytime focus being adults 50+. While fitness remains our most popular offerings, other activities that are in high demand include line dancing, wellness foot care, day trips, weight room, writing classes, driver s safety, bridge (both classes and drop-in play), choir, Strawberry Brunch, Santa and Bunny breakfasts, resource expos, tap and choral shows, teas and cultural events, and Friday Senior Club. In recent years new activities that have generated good response include hikes, snowshoeing, educational talks, genealogy, ipad and tablet classes, and Parkinson s support group. In 1999, our division secured grant funding from the Scientific & Cultural Facilities District and began the coordination of a free summer family concert series, adding the children s entertainment mornings in In 2016, 2450 people attend these performances hosted at McIlvoy Park. Outside of our activities, our facility serves as a gathering place for such rentals as the Gem & Mineral Club, Arvada Gardeners, HOAs, churches, financial planners, weddings, memorial services, and birthday/anniversary parties, and much more. For the District, we host the dance recitals for the youth program and the therapeutic recreation holiday performance, we also serve as a class location for youth dance and therapeutic recreation art and cooking classes. The vast array of activities is coordinated and supported by five full-time staff and over 40 part-time staff who serve as instructors, evening receptionists, evening /weekend facility attendants and sound technician. Sustaining the staff and Center s activities is an army of over 120 volunteers who serve as front desk receptionists, gift shop workers, weight room attendants, crafters, librarians, special event cooks/decorators/servers, van drivers, trip escorts, custodial assistants, and much more. Each year over 10,000 hours are donated by these volunteers, saving the District staffing dollars, and 46 Division Summaries Apex Park and Recreation District

55 making the Center truly a community center. To better select, place, train, and support our volunteers, in 2015 we began the hour per week position of Volunteer Coordinator. Annually we partner with approximately 100 agencies to support our programs financially and/or to share expertise. Fairway Independent Mortgage came on this year as a new $1500 sponsor, plus we engaged seven other new sponsors. We depend on community partners to fill in the gap between the true cost of providing healthful recreation opportunities and what our tax base and senior/adult population can afford. We design partnerships to benefit the Center/District, our patrons, and the partnering agency. Primary areas we partner on include Slate advertising (Center newsletter), event sponsorship, themed lobby fairs, wellness screenings, educational offerings, and underwriting classes or support groups. Performance Measurements Several of our performance goals included: Increase attendance at special events: Concerts (family and children s) increased from 2,101 in 2015 to 2,450 in 2016 (16.6% increase), Mother s Day Tea increased from 107 in 2015, and sold out at 175 in 2016 (63.5% increase), Strawberry Brunch increased from 128 in 2015 and sold out at 146 (plus an 11-person waiting list) in 2016 (14% increase), and the Bunny Breakfast sold out again this year. Increase sponsorships: as of September we already are $950 over 2015 ending sponsorship dollars, with an additional $250 expected. We added a new expo Final Wishes to attract end of life sponsors and had ten agencies participate. Increasing Friends (individual donors) of the Concert: we had 4 new donors, but lost 2 past donors, moving from 15 individual donors in 2015, to 17 in Total individual donations increased from $840 in 2015, to $1,100 in 2016 (31% increase). Increase revenues in low to no income producing activities: o Foot Care is one of our more popular (100 plus people each month) programs, but was a low revenue generator, while labor intensive. We negotiated with the VNA to have them take over the collection of fees and scheduling, and now they rent the room at a reduced rate. The rent now generates $150 per month, where in the past monthly revenue ranged from $35-80 per month, plus it utilizes a lot less staff time. This began in September 2016, and will continue into next year. o We added two free support groups with a sponsor underwriting the facility cost, Caregivers Support Groups underwritten by Home Instead Senior Care and Parkinson s Partners underwritten by Homewatch CareGivers. o Explore new options to offer in our small computer classroom: we began a few new gadget classes, as well as Beginning Genealogy. We are placing computers on rolling stands to give the room more space flexibility for additional class options. Apex Park and Recreation District Division Summaries 47

56 Significant Changes in 2017 Changes for 2017 include: Upgrading staff salaries and part-time wages to current market rate Adding a year-round 25 hours per week position of Guests Services to assist our volunteers at the front desk and help us go more paperless Replacing the Center s AED and purchasing two additional portable AED s to put on the bus and van 2017 Budget Summary FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Grants 5,290 4,132 4,132 4,132 3,990 Charges for Services 258 1,888 1, ,085 Program, League & Assoc Fees 273, , , , ,925 Merchandise & Concession sales Other Miscellaneous Income 10,530 17,301 17,975 9,420 11,940 Total Revenue 289, , , , ,690 Exepnditures Employee Expense 402, , , , ,238 Operating Expenses 23,406 19,737 31,316 33,668 38,360 Intergovernmental Agreement 8,206 4,526 8,364 9,049 8,454 Purchased Services 63,850 41,261 60,090 67,893 55,230 Taxes and Fees Total Expense 498, , , , ,357 Net Surplus (Deficit) (208,612) (125,413) (234,540) (264,191) (277,667) 48 Division Summaries Apex Park and Recreation District

57 Aquatics Department Overview The Apex Park and Recreation District Aquatics Division is comprised of five facilities. Meyers Pool which is a 50-meter competitive/community venue, Apex Center which is a 23,000-square ft. indoor Water Park, Secrest pool and Lake Arbor pool which are seasonal outdoor pools and the Ralston Creek Splash pad which was built in collaboration with the City of Arvada and is provided at no cost to visitors. This Department if funded by the General fund and the Apex center aquatics is budgeted as part of the Apex center and the Apex fund. The Division s goal is twofold. The first goal is to provide safe, clean, and fun facilities to be used by Arvada residents and the surrounding Denver metropolitan area. The second goal is to provide learning opportunities, for participants of all ages, to develop lifelong water skills for fitness and fun. Our program palate is vast and includes, but is not limited to; Group/private swim lessons, youth and adult competitive swimming programs, spring board diving, scuba, canoe, kayak, water fitness classes, stand-up paddleboard classes, therapeutic recreation programs, open swim sessions and end of season dog swims. We strive to provide activities that engage the young and the young at heart daily. 7 full time employees and approximately 180 temporary /year-round part time employees staff the Division. We are a predominate employer of the youth in the Arvada area providing many young people with their first job. We pride ourselves in mentoring our employees and guiding them to establish strong work ethics, excellent customer care, strong communication skills and leadership abilities. We then challenge our employees to apply these skills to their current position and their future professional careers. Aquatics has seen one of its busiest years with facility admissions and rentals. During the summer months, it was common to have kids in groups every week day in at Apex. Secrest saw an 8% increase in the daily admissions and Meyers pool is trending a 15% increase in facility rentals. All of this come at a high price as it takes a large staff and many man hours to operate our facilities and maintain the high level of safety and program excellence. Below is a snap shot of what it takes to keep us a float! Summary of Part- time hours worked Jan.1 -Sept. 21, 2016 Lifeguard I & II 50, Instructor/Coach 1, SR Guard Total: 59, Apex Park and Recreation District Division Summaries 49

58 Estimated Full and Part-time hours work Jan.1 Dec Lifeguard I & II -72,256 Instructors/Coaches -1,473 SR Guards 11,786 Management Team 15,764 Total 101,579 Performance Measurements and Goals The Aquatic Division performance can be measured by the many accomplishments achieved in Although, it is anticipated that the Division will end the year on target with budget the true measure of our performance comes in the upgrades to facilities and program excellence. Facilities upgrades include a new DE filtration system and easy access stairs at Meyers pool, deck recoating and tube slide re-gel coat at Apex, a new circulation pump at Lake Arbor, a new boiler and upgraded electrical box to the water slide at Secrest. These items along with the newly planned preventative maintenance program, in aquatic mechanical systems, has increased the efficiency of operations and our ability to continue to provide safe, crystal clear and fun pools in addition to the highly utilized Splash Pad, at Ralston Creek Park, with minimal down time. Safety continues to lead our program excellence as our lifeguard staff have exceeded the industry expectations by meeting the Ellis and Associate Lifeguard Standard. Sending guest home safely at the end of the day is what we do but it should never be taken for granted. Without the intensity and high level of training that our lifeguard staff receive during their initial lifeguard training and the required hours of continuing in-service education, completed monthly, the outcome could be very different. Our highest number of rescues are made for children two (2) and under. Program excellence continues with our traditional group swim lesson where revenue holds strong. Lake Arbor led the way this summer with a 4% increase in revenue. Private swim lessons continue to be extremely popular and are trending an 8% increase, in revenue, by year end. This is a trend we do not see wavering in Significant Changes in 2017 In 2016, the Division struggled with recruitment and retention of lifeguard staff, maintaining the lowest number of working guards in our history. To avoid major disruptions of service and or closures, of 50 Division Summaries Apex Park and Recreation District

59 facilities, we will implement a new recruitment package and retention plan in Part of the recruitment package includes discounted fees for Lifeguard Training classes and Refer a Friend incentive program for our existing lifeguards. The retention plan will kick off with the Division absorbing the cost of lifeguard annual license renewals, for existing staff. Budget changes for these items will appear in Aquatic Operations training/certificate and staff development lines budget impact: Training/certificates: decrease $6,000 Staff Development: Increase $6,000 In summer 2017, a new splash pad adjacent to the south side of the Apex Center will be opening for its inaugural season. The splash pad will be part of the Apex Center Aquatics area and will appear in the Apex Center -Aquatics general fund budget. This new facility will add to the attraction and excitement of the existing aquatic area providing outdoor fun for toddlers, young children, teens and adults. We anticipate that this new addition will draw larger crowds to the facility and will produce additional revenue through daily admission, group fees and cabana rentals. The additional revenue will appear in the Apex Center General Fund. The new facility will have a slight impact on our lifeguard staff and will require 2 additional lifeguards per shift. This will increase the part time staff hours by 1,680 for the 12 weeks of operations budget additional expense: Chemicals: $3,000 Repair and Maintenance: $2, Budget Summary FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Charges for Services 118, , , , ,300 Program, League & Assoc Fees 282, , , , ,100 Merchandise & Concession sales Other Miscellaneous Income 1,553 5,578 5, Total Revenue 402, , , , ,500 Expenditures Employee Expense 566, , , , ,059 Operating Expenses 69,657 71,412 71,221 82,275 82,200 Intergovernmental Agreement 28,799 16,236 29,063 31,762 29,668 Purchased Services 115,368 98, , , ,555 Taxes and Fees 1,812 1,581 1,542 1,800 - Capital Outlay 4, Total Expense 786, , , , ,482 Net Surplus (Deficit) (384,197) (268,237) (348,171) (409,393) (552,982) Apex Park and Recreation District Division Summaries 51

60 Apex Recreation Center Department Overview The Apex Center is a 168,500-square foot facility and the largest Recreation Center in Colorado. The center houses two ice arenas, three gymnasiums, a 23,000-square foot themed indoor aquatics complex, climbing wall, fitness center, meeting rooms and a host of other fitness and recreational amenities. The ice arena has two NHL regulation size sheets of ice, ten locker rooms, and spectator seating accommodating 800 in the West Rink and 250 in the East Rink. The Apex Center houses a 3400sqft fitness center that is dominated by a 25 natural like looking indoor climbing wall. Cardio and weight equipment surround the climbing wall and is only accessed via our controlled admissions area. There are various types and brands of equipment on hand for all guests to use. We have two gyms, a large gym that can be divided into two smaller basketball courts and one small separate auxiliary gym. Gym activities include basketball, volleyball, Pickleball, as well as they are rented out to the public. The running track is located on the upper level above the gyms. On the upper level, we also have the Edge Wellness Studio where indoor cycling and Pilates reformer classes are held as well as massage. Other amenities of the Apex Center include an indoor adventure playground for kids up to the age of 10, Child-watch service for those guests who stay on site and want to get a work out in without their kids, a café where guests can grab a quick snack on the weekends, three varying sized rooms used for meetings and rentals, and full service locker rooms. The Professional Skater s Association has recognized the Apex Center Ice Arena as an Excellence on Ice Facility in 2014, 2015, and The Apex PRD has been partners with Arvada Hockey for 47 years and is proud to have them offering youth hockey programs in the district. The rinks are also home to Colorado School of Mines, Colorado Christian University, Denver Women s Hockey League, Women s Association of Colorado Hockey, Columbine Figure Skating Club, Alpine Skating Club, Broomball Groups, Speed Skating Groups, various hockey camps, and private rentals. Our goal is to provide a safe, clean and fun facility for all ages. We are a regional center that serves the Arvada community and the surrounding Denver metropolitan area. The Apex Center employs people to maintain, instruct, and provide service to a wide 52 Division Summaries Apex Park and Recreation District

61 variety of users. The Apex Center Department is funded by the General fund (it was and enterprise fund prior to 2017). Performance Measurements and Goals Meet or exceed the overall net for each of my department budgets. Reduce expenses where possible and continue to promote fiscal responsibility in my departments. Work with department managers to quickly turn around invoices through DocuSign so vendors and contractors can get paid quicker. Increase hockey revenue by hosting 2017 Adult Hockey Tournament and new summer programming for youth hockey. Increase Learn to Skate participation, leading to trickle up revenue for Public Skate, hockey, and figure skating programs. Intent to host 2017 PSA Fall Workshop for Skating Instructors Significant Changes in 2017 The Apex Center is moving from its own enterprise fund into the General Fund, also its repairs and maintenance costs are not budget in District Services Division s budget. Major expenditure impact is the salary changes discussed in the Budget Summary on page 12 to Budget Summary FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Grants Charges for Services 2,002,838 1,853,979 2,143,540 2,332,026 2,169,600 Program, League & Assoc Fees 1,858,276 1,700,857 2,015,772 1,828,500 2,033,000 Merchandise & Concession sales 180, , , , ,065 Other Miscellaneous Income 3,623 40,582 39, Operating Transfer In - 11,500 11,500 11,500 - Total Revenue 4,045,357 3,751,733 4,393,205 4,345,966 4,387,165 Expenditures Employee Expense 2,625,948 2,187,965 2,785,639 2,788,360 2,800,680 Operating Expenses 538, , , , ,445 Purchased Services 797, , , , ,380 Taxes and Fees 9,311 7,333 9,563 9,560 8,775 Capital Outlay 2, , , ,500 - Other Expenses 25, Total Expense 3,998,888 3,413,887 4,295,111 4,307,937 4,047,280 Net Surplus (Deficit) 46, ,846 98,094 38, ,885 Revision for the Apex Fund Apex Park and Recreation District Division Summaries 53

62 Golf- Indian Tree Department Overview The mission of Indian Tree Golf Club, as adopted by the District in 1968, is to provide the Arvada community with a quality golfing experience at a safe, attractive and an affordable facility. The operations are funded by the Golf fund. Indian Tree is a Championship golf course with all the golf amenities. Our Championship 18-hole course features larger than normal, undulating greens that challenge golfers of all abilities. The course starting measure is at 5,273 yards, and can be stretched to over 7,000 yards with a course rating of 72.2 and a slope rating of 129. It currently has four sets of tees and can be set up to play seven different courses. We also offer a beginner 9-hole par-3 course of over 1140 yards. Indian Tree has approximately 48,000 rounds of golf played annually on the Championship and Par-3 courses with another 40,000 players uses on the practice facilities. This practice facility has a large teeing area and can handle the longest of hitters. The facility has six target greens as well as a bunker that takes care of both short and long bunker shots. Wrapping up our practice areas is a chipping green, as well as two putting greens and our most favorite practice area is the free pitching target area. The Championship and Par 3 courses host three Ladies Golf Clubs, a Men s Club, a Super Seniors Men s Club, a Par-3 Senior Club and a Junior Golf Club. Indian Tree is host home course to over nine local area girls and boys high school golf teams; we hold several state Junior Associations, Colorado Golf Association, Colorado Women s Golf Association, and the Colorado PGA Associations events. We also serve over 30 businesses and corporate and charity tournaments per year. See trends and 2016 estimation in the following table: 18 Holes 9 Holes Annuals Par3 Total Closed Days Players per day ,975 7,011 3,023 16,192 46, ,171 8,506 3,106 16,832 48, ,121 7,939 2,666 18,133 52, ** 25,151 4,931 2,367 17,064 47, Performance Measurements and Goals Increase 2017 junior golf and adult golf class participation by 2% over 2016 totals. Increase the 2017 restaurant net income by 2% over 2016 budget. Successfully host over twenty-five businesses, charity and corporate golf tournaments; over nine high school s boys and girl s practices, and combine school Invitational. Successfully host a Colorado PGA P.A.T. testing event and a Junior Golf Alliance of Colorado major tournament. 54 Division Summaries Apex Park and Recreation District

63 Increase total golf rounds by 2% or 948 players, weather permitting. Evaluating and adjust the rate structure for special fee programs to remain competitive in the golf market while continuing to support the Golf enterprise fund. Significant Changes in 2017 For the upcoming year, the wages changes are showing the largest impact for the Golf course Budget Summary FY2015 FY2016 FY2016 FY2016 FY2017 DESCRIPTION Actuals to 10/31 Estimated Final Budget Budget Revenues Grants Charges for Services 928, , , , ,179 Program, League & Assoc Fees 452, , , , ,200 Merchandise & Concession sales 566, , , , ,500 Other Miscellaneous Income 4,501 1,000 1, ,129 Operating Transfer In 62,090 4,000 4,000 4,000 - Total Revenue 2,015,911 1,867,400 1,940,191 1,966,013 1,994,008 Expenditures Employee Expense 1,010, ,166 1,009,220 1,045,493 1,119,011 Operating Expenses 588, , , , ,070 Purchased Services 207, , , , ,750 Taxes and Fees 28,028 28,679 28,755 31,547 33,695 Capital Outlay 4, Capital Leases 63,619 63,619 63,619 63,619 63,619 Other Expenses 7, Total Expense 1,910,767 1,664,913 1,869,093 1,965,727 2,012,145 Net Surplus (Deficit) 105, ,487 71, (18,137) Apex Park and Recreation District Division Summaries 55

64 Capital Project Plan

65 Capital Project Plan Capital Project Plan Process Capital Project funds account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including acquisition and construction of facilities and other capital assets. These expenditures are typically one-time large expenditures for the District and not operational spending. The budgets for capital projects involve management staff reviewing the needs, priorities and goals for the District, along with information or submissions from department staff, Board of Directors and citizens. The District then prioritizes the recommendations for capital projects based on the following: Safety - safety issue or compliance with regulations Needs - maintenance and repair needed to continue the level of service Leveraging funds - if funding from other sources is being provided to offset costs of the District Short-term payback - the improvement would generate revenue or decrease expenses Board Initiative or citizen requests - support the strategic plan adopted by the District or contributes to the wider goals of the District. Each project there is examination of operational impact from loss of revenue due to any shut downs to operational costs of a new facility. The recommended projects are then submitted to the Board of Directors along with the proposed budget for further review. The Board reviews the requested capital projects, as well as, the funding recommendations from staff. The Board of Directors will adopt the year s capital plan as a part of the budget adoption process. Bond Projects As described in the Fund Summaries for the Debt Service Fund District has six projects funded mostly by the issuance of general obligation debt. These projects had a longer vetting process than described above with several public meetings and discussed at Board meetings before the ballot question was proposed. Below are the projects with their estimated cost and completions: Secrest Center (6820 W. 66th Ave.): $7,442, completion o Construct 21,521+ sq. ft. replacement recreation center to include small weight room, community/aerobics area teen center, small gym, locker rooms, warm water therapy pool. Swimming pool and inline hockey rink will remain. o This will add revenue with the fitness center and therapeutic pool and will have additional operational costs with the new operations. Apex Park and Recreation District Capital Plan 57

66 Fitzmorris Site Center/Pool (Independence St. and W. 62nd Pl.): $4,895, Completion o Construct 8,500+ sq. ft. recreation center, six lane pool to include small weight room, community/aerobics area. o This will add a new revenue stream and operational expense for the District. This is a brand-new center so there are no construction/shut down costs. Arvada Tennis Center (6430 Miller Street): $5,760, completion o Renovate eight outdoor courts with post tension surfaces, new lights, fences. Addition of facility with four new indoor courts and controlled access to all areas of the tennis complex. o This will add additional revenue and increase revenue during the winter months. There will be additional operational costs with staff. There should be little revenue loss during construction phases. Lutz Sports Complex Improvements (10664 W. 58th Ave.): $4,310, completion o Construct a new four-field baseball/softball pod complex with lighting, parking, restroom/concession. o Depending on timing of construction there may be some losses in revenue. This project does not increase revenue but makes the fields more efficient and enhances our service to our users. Apex Center (13150 W. 72nd Ave.) Renovation, Splash Pad Addition: $1,553, completion o Construct 7,800 sq. ft. outdoor splash pad, renovate aquatics area center pool, renovate indoor playground. o These changes should help with revenues and should not increase operational costs. 58 Capital Plan Apex Park and Recreation District

67 Long Lake Ranch Regional Park Improvements (17850 W. 64th Ave.): $4,285, completion o Construct two new baseball/softball fields, including backstops, to complete the first five-field complex, lighting for all five baseball/softball fields; construct a restroom/concession building. Construct two new synthetic multi-sport turf fields (lacrosse/rugby/football), with parking and lights. o This will create additional revenue and should add minimal operational expenditures. Capital Project Plan Below are the projects with their budgets by funding source, see fund details in the Fund Summary section. The last part of the District contracted a District wide assessment on its building. The results of this assessment will not be available until December so the Conservation Trust fund has a project titled Requests on hold for assessment this is for items indented in the assessment as necessary and needed during Capital Fund Project Description Budget/carry forward 2016 Budget 2017 Projected Balance 523,610 1,183,399 District Special Porject manager Manager Salary - 123, ,117 Community Heroes Park - final phase 632, ,106 Simms Final phase 284, ,539 Contingency N/A 100, ,000 Assigned for future capital items N/A 500, , , ,117 1,639,762 67,247 Apex Park and Recreation District Capital Plan 59

68 Conservation Trust Fund Project Description Budget/carry forward 2016 Budget2017 Projected Balance Fund Balance Budgeted Income 427, ,320 Applemeadows Pk. - site upgrades 40,000 40,000 Campbell Cottage - site amenities repl. swing, playg 31,000 31,000 Lake Arbor - flooring replacement 10,000 10,000 RecTrack upgrade 34,000 86, ,000 Golf Equipment (3 year replacement plan) N/A 150, ,000 Apex-Fitness Cardio equipment N/A 70,000 70,000 Apex- Auto scrubber N/A 8,000 8,000 Apex- pond mediation N/A 10,000 10,000 Apex- Ice Compressors - "Top End Rebuild" N/A 9,500 9,500 Apex- Zamboni Doors - East Rink N/A 4,500 4,500 Aquatics- Chlorine system replacement -Apex N/A 9,000 9,000 Aquatics- Diving Board replacement- Meyers N/A 5,500 5,500 Aquatics- Lane Lines - Meyers & Secrest N/A 6,500 6,500 Aquatics- Backwash trash pump replace, replumb an N/A 5,000 5,000 Aquatics- Secrest pump N/A 5,000 5,000 CRC- Cardio Room upgrades N/A 10,250 10,250 CRC- McCormack Hall Audio-Visual Upgrade N/A 35,000 35,000 Golf- Golf Cart Paths N/A 25,000 25,000 MIS- Equipment Improvements/Replacement N/A 15,000 15,000 RFC-Weight/Cardio Equipment N/A 20,000 20,000 RFC- Ceiling Tiles N/A 5,000 5,000 RFC-Exercise Room Flooring N/A 20,000 20,000 RFC- Flooring replacement N/A 6,000 6,000 FH-Automatic scrubber N/A 5,400 5,400 Requests on hold for assessment N/A 357, ,500 81, , ,150 54, Capital Plan Apex Park and Recreation District

69 Appendices

70 2017 Annual Appropriations Resolution DRAFT PENDING FINAL ASSEMENT APEX PARK AND RECREATION DISTRICT West 72nd Avenue Arvada, Colorado RESOLUTION OF APEX PARK AND RECREATION DISTRICT TO ADOPT BUDGET APRD WHEREAS, the Board of Directors of Apex Park and Recreation District has directed the Executive Director to prepare and submit a proposed 2017 budget to the Board at the proper time; and WHEREAS, the Executive Director has submitted the proposed budget to the Board on or before October 15, 2016, for its consideration; and WHEREAS, upon due and proper notice, published in accordance with law, the budget was open for inspection by the public at a designated place, and a public hearing was held on November 17, 2016, and interested electors were given the opportunity to file or register any objections to the budget; and WHEREAS, the budget has been prepared to comply with all terms, limitations and exemptions, including, but not limited to, enterprise, reserve transfer and expenditure exemptions, under Article X, Section 20 of the Colorado Constitution ( TABOR ) and other laws or obligations which are applicable to or binding upon the District; and WHEREAS, in order to effect a refund of excess property tax and/or other general revenue for the 2017 fiscal year for any of the purposes set forth in TABOR, the Board has determined that a temporary property tax credit and mill levy rate reduction as set forth in the budget should be approved and certified to the County in accordance with the provisions of Section , C.R.S.; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance, as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Apex Park and Recreation District: 62 Appendices Apex Park and Recreation District

71 1. That estimated expenditures for each fund are as follows: General Fund: $ 12,709,139 Conservation Trust Fund: 958,150 Capital Fund: 1,139,762 Debt Service Fund: 26,943,714 Golf Fund: 2,012,145 Total $ 43,762, That estimated revenues are as follows: General Fund: From sources other than general property tax 8,054,138 From general property tax Levy 5,045,935 From prior year fund balance (390,934) Total General Fund $ 12,709,139 Conversation Trust Fund: From District portion of lottery proceeds 590,320 From prior year fund balance 367,830 Total Conservation TrustFund $ 958,150 Capital Fund: From Sources other than General Property Tax 441,200 From General Property Tax Levy 742,199 From prior year fund balance (43,637) Transfer from General Fund - Total Capital Fund 1,139,762 Debt Service Fund: From general property tax Levy 2,066,544 From City of Arvada 2,100,000 From Interest 65,000 Total Debt Service Fund $ 4,231,544 Golf Course Fund From Sources other than General property tax 1,994,008 Total Golf Course Fund $ 1,994,008 Apex Park and Recreation District Appendices 63

72 3. That reserves have been combined as a single reserve fund as set forth in the budget in order to preserve the spending exemption for reserves under TABOR, and all such reserves shall be transferred or expended within any fund as set forth in the budget. 4. That the budget, as submitted, amended and herein summarized by fund, including, but not limited to, any temporary property tax credit and mill levy rate reduction, be, and the same hereby is, approved and adopted as the budget of Apex Park and Recreation District for the 2017 fiscal year. 5. That the budget, as hereby approved and adopted, shall be certified by the Treasurer and President of the District to all appropriate agencies and is made a part of the public records of the District. TO SET MILL LEVIES WHEREAS, the amount of money necessary to balance the budget for general operating expenses is $5,169,902, together with abatements in the amount of $18,249; and WHEREAS, the amount of excess property tax and/or other general revenue necessary to refund in accordance with Section , C.R.S. is $223,022; and WHEREAS, the amount of money necessary to balance the budget for debt service expenses is $2,066,358; and WHEREAS, the 2016 valuation for gross assessment of the District, as certified by the Jefferson County Assessor, is $1,592,736,251 (net $1,499,391,610), $308,456 (net $303,462) for Ex-15, $31,659 for Ex-16 and $32,154,680 (net $26,854,474) by the City and County of Broomfield. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Apex Park and Recreation District: 1. That for the purpose of meeting all general operating and Capital Maintenance & Improvement Fund expenses of the District during the 2017 budget year, there is hereby levied a property tax of mills upon each dollar of the total net valuation for assessment of all taxable property within the District to raise $5,184, That for abatement purposes, there is hereby levied a tax of.012 mills, $18,249 in Jefferson County and mills, $5,122 in City and County of Broomfield upon each dollar of the total net valuation for assessment of all taxable property within the District. 3. That for the purpose of meeting all debt service expenses of the District during the 2017 budget year, there is hereby levied a property tax of mills upon each dollar of the total net valuation for assessment of all taxable property within the District to raise $2,049,668 in Jefferson County. There is hereby levied a property tax of 64 Appendices Apex Park and Recreation District

73 0.613 mills of all taxable property within the District to raise $205 in Jefferson County and $16,671 in the City and County of Broomfield. 4. That for the purpose of effecting a refund of excess property tax and/or other general revenue for the 2017 fiscal year there is hereby established a temporary property tax credit and mill levy rate reduction of.058 mills upon each dollar of the total valuation for assessment of all taxable property within the District to refund $223,022 of such revenue. 5. That the Treasurer and President of the District is hereby authorized and directed to immediately certify to the County Commissioners of Jefferson County, Colorado, the mill levies for the District, and the debt service mill levy only to the City and County of Broomfield, Colorado, as hereinabove determined and set. TO APPROPRIATE SUMS OF MONEY WHEREAS, the Board of Directors of the District has made provision in the budget for revenues in an amount equal to the total proposed expenditures as set forth therein; and WHEREAS, it is not only required by law, but also necessary to appropriate the revenues provided in the budget to and for the purposes described below, as more fully set forth in the budget, including any interfund transfers listed therein, so as not to impair the operations of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Apex Park and Recreation District that the following sums are hereby appropriated from the revenues of each fund, to each fund, for the purposes stated in the budget: General Fund: $ 12,709,139 Conservation Trust Fund: 958,150 Capital Fund: 1,139,762 Debt Service Fund: 26,943,714 Golf Fund: 2,012,145 Total $ 43,762,910 Apex Park and Recreation District Appendices 65

74 Tax Levy Assessment Apex Park and Recreation Property Tax Revenue and Mill Levy Budget History Mill Levy History Net Year Assessed General Capital Debt Abates General Tax Capital Tax Debt Tax Abat Tax Total Jefferson County ,160,085, ,693, ,043 2,133,913 43,441 6,451, ,232,344, ,917, ,010 2,214,023 65,200 6,806, ,278,740, ,021, ,092 2,106,529 68,711 6,834, ,269,442, ,987, ,530 2,093,311 62,473 6,781, ,273,739, ,007, ,049 2,092,754 58,592 6,791, ,229,031, ,861, ,516 2,091,811 72,513 6,640, ,240,912, ,903, ,252 2,180, ,630 6,810, ,257,503, ,949, ,009 2,174,224 72,211 6,826, ,266,180, ,984, ,759 2,120,852 77,087 6,809, ,498,692, ,425, ,853 2,116,568 30,993 7,315, ,499,391, ,427, ,199 2,049,668 18,249 7,237,819 Jefferson County - Debt Only , , Jefferson County - Debt Only , Broomfield- Debt Only ,511, , , ,036, ,977 1,324 46, ,196, ,500 5,704 47, ,877, ,023 2,836 43, ,088, , , ,625, , , ,746, ,187 6,021 38, ,497, ,356 4,589 46, ,921, ,068 1,491 41, ,794, , , ,195, ,671 5,122 21, totals ,427, ,199 2,066,358 23,371 7,259, Appendices Apex Park and Recreation District

75 Certification of Tax Levy- Jefferson County Apex Park and Recreation District Appendices 67

76 68 Appendices Apex Park and Recreation District

77 Certification of Tax Levy- Jefferson County- Debt Only -15 Apex Park and Recreation District Appendices 69

78 70 Appendices Apex Park and Recreation District

79 Certification of Tax Levy- Jefferson County- Debt Only -16 Apex Park and Recreation District Appendices 71

80 72 Appendices Apex Park and Recreation District

81 Certification of Tax Levy- Broomfield County- Debt Only Apex Park and Recreation District Appendices 73

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83 Jefferson County Letter Apex Park and Recreation District Appendices 75

84 Jefferson County Debt Only Letter Appendices Apex Park and Recreation District

85 Jefferson County Debt Only Letter-16 Apex Park and Recreation District Appendices 77