Hayward Area Recreation and Park District 1099 E Street, Hayward, CA 94541 (510) 881-6700 ADDENDUM DESCRIPTION OF ITEMS ON AGENDA BOARD OF DIRECTORS Monday July 28, 2014 Work Session - 5:30 p.m. Regular Board of Directors Meeting - 7:00 p.m. BOARD OF DIRECTORS AND STAFF PRESENTATIONS IV. Budget Fiscal Year 2013/2014 (Capital Outlay and Finance Committees) A. Board of Directors Committee and Staff Presentations Relative to Year-End Closing of Fiscal Year 2013/2014 Operating and Capital Outlay Budget B. Comments and Actions by the Board of Directors Before a final Fiscal Year 2014/2015 Budget can be adopted the books for the previous fiscal year must be closed and the actual numbers made available. On Friday, July 11, 2014 the Business Department finished closing Fiscal Year 2013/2014. As was the case in 2011, the closing figures resulted in a deficit rather than a surplus. This was almost entirely due to the fact that the District took on a very aggressive capital improvement program and many of the capital projects that were completed or are still in progress have been expensed to 2013/14, but the revenue from sources such as Measure WW, City of Hayward in-lieu fees and Alameda County in-lieu fees will not be collected until the new fiscal year. More detail will be provided in the next agenda item as Staff will recommend that these funds still due be made part of the Fiscal Year 2014/2015 Adopted Budget. On the Operations side, Departmental Expenditures were below projections by $632,153, broken down as follows: the Business Department was under expended by $186,887; Parks was under by $545,096; Recreation was over by $230,183, which was offset by revenue; and Golf was under by $130,353. Total Operations expenses were below projections by $632,153. On the Revenue side, Golf was under projections by $267,921, while Recreation exceeded their projections by $284,030 and Parks exceeded theirs by $209,850. Property taxes received were $1,896,548 higher than anticipated, primarily due to residual payments from the dissolution of redevelopment. All other income was below projections by $226,156. Overall, income from Operations exceeded projections by $1,896,351. This resulted in an overall surplus from Operations of $2,528,504.
Addendum Description of Items on Agenda Monday, July 28, 2014 Page 2. Capital Outlay expenses exceeded projections by $5,802,488 mainly due to the acquisition of the East Bay MUD site, which was $5,627,726, $5,565,980 of which was funded using the newly issued Certificates of Participation. As previously noted, funds for several projects will not be collected until the new fiscal year, which when combined with some additional capital costs resulted in a revenue shortfall for Fiscal Year 2013/14 in the Capital Outlay Budget of $2,769,440. Overall, the end result when Operations and Capital are combined is a net deficit of $240,936. Staff, therefore, recommends that the Board of Directors adopt a resolution accepting the closing figures for the 2013/2014 Fiscal Year and that the deficit be taken from the District s Contingency Reserve, which will then lower the amount of prior year funds being carried forward into the new fiscal year, and further direct Staff to add the additional revenues due to the District for various projects into the new year budget. V. Budget Fiscal Year 2014/2015 (Capital Outlay and Finance Committees) A. Board of Directors Committee and Staff Reports B. Public Hearing C. Comments and Action by the Board of Directors At their regular Board meeting on Monday, May 12, 2014 the Board of Directors adopted a Preliminary Operating Budget in the amount of $28,402,963 and a Preliminary Capital Outlay Budget of $3,804,427. Also approved were a $1,431,222 Contingency Reserve and a $100,000 Turf Replacement Reserve for a total Preliminary Budget of $33,738,612. As previously reported, the books have been closed on the 2013/2014 Fiscal Year and the deficit of $240,936 has decreased the amount of Prior Year Funds Carried Over to the new fiscal year budget to $1,695,239. Staff has the following recommendations to make to the District s Capital Outlay Budget for Fiscal Year 2014/15 prior to Board adoption. The following are projects being carried over from last fiscal year: District Wide Area: Botany Grounds Parcel Acquisition (Theatre and Senior Center Parking Lot): $500,000 in revenue; $500,000 in expenses. Castro Valley Swim Center Renovation: Increase revenue to $1,115,000 and increase expenses to $1,100,000 Corporation Yard Equipment Pad: $10,000 in expenses. District Solar Project: $10,000 in expenses. DOI-1415-2 - 2-7/25/14
Addendum Description of Items on Agenda Monday, July 28, 2014 Page 3. Douglas Morrisson Theatre ADA Upgrade: $173,000 in revenue. Hayward Plunge ADA Upgrade: $250,000 in revenue. Shoreline Interpretive Center Habitat Room Renovation: $75,000 in expenses Sorensdale Kitchen Renovation: Reduce expenses by $531,000 as money had already been encumbered in the 2012/13 Fiscal Year and made part of that year s closing figures, and was expensed in the 2013/14 Fiscal Year. Castro Valley Area: Castro Valley Community Center HVAC Project: $10,000 in revenue. Castro Valley Community Center Kitchen Renovation: $26,000 in revenue. Castro Valley Community Park Walking Path ADA Upgrades: $125,000 in revenue. Castro Valley Community Park Picnic Area Shade Structure: $3,000 in expenses. Earl Warren Park Restroom ADA Upgrade: $69,000 in revenue. Hayward Area: Birchfield Park Shade Structure: $20,000 in revenue; $20,000 in expenses. Birchfield Park Restroom ADA Upgrade: $45,000 in revenue; $8,000 in expenses. Christian Penke Park Pathway: $83,000 in revenue; $3,000 in expenses. Eden Greenway Phase XII Irrigation Renovation: $100,000 in revenue; $100,000 in expenses. Greenwood Park Expansion and Renovation: $1,000,000 in revenue; $1,000,000 in expenses. Stonebrae Restroom Installation: $300,000 in revenue; $280,000 in expenses. Valle Vista Parcel Acquisition: $360,000 in revenue; $345,000 in expenses. Weekes Community Center Pre-K Play Area: $46,000 in revenue. San Lorenzo Area: No changes. Unincorporated Hayward Area: Hampton Road Dog Park: $200,000 in revenue. DOI-1415-2 - 3-7/25/14
Addendum Description of Items on Agenda Monday, July 28, 2014 Page 4. Meek Park Restroom: $45,000 in revenue San Felipe Park Sidewalk: $21,000 in revenue, $12,000 in expenses. The following are new projects staff is proposing to be added to the Budget: District Wide Area: Kennedy Park renovation Plans and Specifications: $760,000 in revenue; $760,000 in expenses. COP proceeds will be the funding source. Castro Valley Area: EBMUD Park site Master Plan: $125,000 in income; $125,000 in expenses. COP proceeds will be the funding source. These recommendations result in an increase to the District s Capital Budget of $5,373,000 in revenue and an increase of $3,820,000 in expenses. The net result is an increase in revenue of $1,553,000, which will balance the current year s budget and provide a Contingency Reserve of $1,440,724. This is almost exactly 5% of the District s Operating Budget, and in compliance with the District s Contingency Reserve Policy. In summary, the Fiscal Year 2014/2015 Operating and Capital Outlay Budget is recommended to be: a. Salaries, Wages & Benefits $19,609,777 b. Services & Supplies 7,305,750 c. Internal Service Fund-Insurance 499,000 d. Equipment and Other Capitalized Items 132,000 e. Other Post Employment Benefit Funding 856,435 f. Synthetic Turf Replacement Reserve 100,000 g. Appropriation for Contingencies 1,440,724 h. Capital Outlay 6,713,488 TOTAL $36,657,174 DOI-1415-2 - 4-7/25/14
Addendum Description of Items on Agenda Monday, July 28, 2014 Page 5. Sources of income to provide for these requirements are: a. Taxes $ 19,816,000 b. Fees, Admissions & Operations 8,251,700 c. Prior Year Funds 1,695,239 d. Capital Outlay Grants and In-Lieu Fees 6,688,000 e. Other 206,235 TOTAL $36,657,174 The State of California has for the last twenty-two (22) years shifted funds from the District to finance public schools, resulting in the loss of over $180 million. This has severely restricted both the District s day-to-day operations and our Capital Outlay Program. Fortunately, outside sources such as Measure WW along with In Lieu Park Dedication Fees and other Grants have allowed us to continue to add and upgrade facilities, but there is still tens of millions of dollars in deferred maintenance and improvements that need funding. This year we again were very fortunate to receive a significant increase in property tax revenue due to the receipt of residual distributions as a result of the dissolution of Redevelopment Agencies and increases to assessed values of property in the District. As has been noted previously, some of this is one-time money and cannot be used for ongoing expenses. The housing market has continued its recovery and upward movement, which will result in tax revenue continuing to grow moving forward, though at a slower pace. This budget continues to emphasize meeting our outstanding legal obligations and maintaining existing parks, recreation facilities, and programs at the highest possible level within existing funding. Staff would now ask that the President read the budget statement and open the public hearing. After the hearing and Board discussion, Staff would recommend that the Board of Directors adopt a resolution approving the Fiscal Year 2014/2015 Budget including Staff s recommended changes. DOI-1415-2 - 5-7/25/14