WSPR Staff Report: 2025 Budget and Requisition Request
Report from the WSPR Administrator recommending approval of the 2025 budget and requisition request for the society.
MUNICIPAL OWNERS
WSPR STAFF REPORT
| TO: | West Shore Parks & Recreation Society Members |
| FROM: | Grant Brown, Administrator |
| DATE: | October 21st, 2024 |
| SUBJECT: | 2025 Budget and Requisition Request |
RECOMMENDATION:
That the West Shore Parks & Recreation Society Members review and approve the West Shore Parks & Recreation Society 2025 budget and requisition request as presented.
BACKGROUND:
On October 10th, 2024, the West Shore Parks & Recreation Society Board of Directors moved THAT THE DRAFT 2025 WSPRS BUDGET BE PRESENTED TO COUNCIL MEMBERS FOR APPROVAL.
This package contains the above-noted financial information for the West Shore Parks & Recreation Society. The package has been divided into sections to aid in analysis and includes the following: Five Year Consolidated Financial Plan, Budget Comparison, Capital Summary, 5-Year Capital Plan, Reserve Continuity, Converted Assessments, Impact to Taxation, Requisition Request, Operating Summary and the Fees and Charges updates for 2025.
DISCUSSION:
The West Shore Parks & Recreation Society is projecting a $358,124 surplus for the 2024 fiscal year. Operating surpluses contribute to the Society’s general capital reserve and the 2024 contribution ensures positive capital asset reserve balances throughout the enclosed 5-year financial plan. The major contributors to the positive 2024 financial performance include higher interest income levels from reserve funds and continued performance improvements in program areas, as well as savings due to regular staffing vacancies in some departments.
The 2025 West Shore Parks & Recreation Society’s requisition request is for $6,285,001 which is a $235,915 or 3.90% increase over the 2024 approved requisition. The 2025 requisition request is in line with the Society’s 5-year financial plan as was presented the previous year.
The 3.90% requisition increase includes a 0.26% or $15,915 increase to the operating budget and a 3.64% or $220,000 for an additional annual capital reserve contribution. The additional reserve fund contributions progress the Society closer to achieving its goal of obtaining sufficient funds for the maintenance and replacement of existing infrastructure which had a 2023 appraised value of $118,311,800.
The budget for 2025 includes the following considerations:
- Collectively bargained wage increases: 3%. A 1% wage increase has a value of $89,634 or a 1.40% requisition increase.
- Insurance premiums: A 10% premium increase is expected due to the continuation of a “hard” market where rates are increasing for large-value insured properties. A significant factor for WSPRS is a reduction in providers willing to quote on its insurance needs, resulting in a less competitive market.
- Annual utility rate increases: 5 – 15% expected utility rate increases. Energy conservation upgrades have offset much of this.
The proposed 2025 – 2029 Financial Plan includes the following:
- Non-discretionary increase in expenses: $325,376:
- 3% collectively bargained wage increases: $268,903
- Insurance premium increases: $56,473
- The conversion of two auxiliary positions to regular status to provide greater operational stability and support for programs. This includes the addition of a program assistant in the arenas and special events department, as well as a facility maintenance worker at the Q Centre Arena.
- The addition of 3 new regular positions to further support the services currently offered, as well as the continued performance improvements to services in the proposed 2025 budget. These include a regular part time aquatics programmer, a parks maintenance worker and a systems assistant. These positions will be internally funded by the aforementioned performance improvements for 2024 which project revenues to be $540,041 greater than budgeted and have been included in 2025’s budgeted revenue expectations.
- Increased reserve contributions:
- A continued annual $60,000 increase to the capital reserve transfer as approved by the owners in 2021.
- A $10,000 increase to the fitness equipment reserve based on the value of recent equipment replacements.
- A $10,000 increase to the school bus replacement reserve based on replacement pricing.
- The establishment of a velodrome artificial turf replacement reserve, with an annual contribution of $40,000, to fund the Society’s obligation towards the scheduled replacement in 2030 in partnership with the West Shore Rugby Football Club.
- The establishment of a new initiatives reserve, with an annual contribution of $100,000, enabling the Society to fund new capital projects from internal sources, thus reducing the necessity to request further tax funds from the members when infrastructure grants require matching funds.
- Fees and charges increase, effective September 2025.
- Average increases as follows:
- Admissions 4.14%
- Indoor facilities 4.10%
- Arenas 4.10%
- Outdoor facilities 5.06%
- Golf 2.46%
- Average increases as follows:
The 2025 capital plan includes the following projects and funding sources:
| West Shore Parks & Recreation Society | |
|---|---|
| 2025 Capital Budget Requests | 2025 Budget |
| CAPITAL FUNDING | |
| Capital Reserve | (1,784,000) |
| Library Capital Reserve | (70,000) |
| IT Infrastructure Reserve | (50,000) |
| TOTAL FUNDING | $ (1,904,000) |
| MAJOR SITE MAINTENANCE | |
| Pool Boilers | 370,000 |
| HR Offices & Training space (carry forward from 2024) | 100,000 |
| JDF Arena MCP Panel | 100,000 |
| Surveillance Equipment | 80,000 |
| System Server Hosts | 50,000 |
| Pool UV Main | 30,000 |
| Lights Back lit | 25,000 |
| Preventative electrical maintenance | 12,500 |
| Clubhouse Hot Water Tank | 10,000 |
| Double Doors Oak Room | 8,000 |
| Q Centre Water Tanks | 7,500 |
| 793,000 | |
| MAJOR PARKS MAINTENANCE | |
| Roadway Repair | 45,000 |
| Water closet man holes | 20,000 |
| Fencing | 10,000 |
| Curb Painting / replacement | 5,000 |
| 80,000 | |
| FLEET | |
| ZAMBONI (Electric) | 300,000 |
| TORO 4500 (carry forward from 2024) | 138,000 |
| TORO Workman HD (carry forward from 2024) | 52,000 |
| SANDPRO (carry forward from 2024) | 50,000 |
| TORO Triplex | 37,000 |
| TORO Pro Pass (carry forward from 2024) | 26,000 |
| Ice Edger | 8,000 |
| 611,000 | |
| LIBRARY CAPITAL EXPENDITURES | |
| Main Work Traffic Area Flooring Replacement | 70,000 |
| 70,000 | |
| NEW INITIATIVES | |
| Pickleball (carry forward from 2024) | 350,000 |
| 350,000 | |
| TOTAL CAPITAL EXPENDITURES | $ 1,904,000 |
| NET CAPITAL | 0 |
*Note: approved projects not completed in 2024 are noted as carried forward for 2025.
Increase and impact to each municipality:
| 2024 Budget (4.00% Increase) | 2025 Budget (3.90% Increase) | Increase | % Increase | |
|---|---|---|---|---|
| REQUISITIONS | ||||
| Operating | $ (5,102,949) | $ (5,118,864) | $ (15,915) | 0.26% |
| Capital Contribution | (946,137) | (1,166,137) | (220,000) | 3.64% |
| TOTAL REQUISITIONS | (6,049,086) | (6,285,001) | (235,915) | 3.90% |
| REQUISITION REQUEST | ||||
| Colwood | (1,357,564) | (1,403,305) | (45,741) | 3.37% |
| Highlands | (211,580) | (209,563) | 2,017 | -0.95% |
| Langford | (3,276,205) | (3,422,724) | (146,518) | 4.47% |
| Metchosin | (435,092) | (458,620) | (23,528) | 5.41% |
| View Royal | (768,644) | (790,789) | (22,144) | 2.88% |
| $ (6,049,086) | $ (6,285,001) | $ (235,915) | 3.90% |
As per the West Shore Parks, Recreation and Community Services Agreement, which governs the members’ obligations as participants in the WSPRS, the requisition amounts attributed to each member is proportioned based on their converted assessment values as provided by each members’ financial officer on an annual basis.
FINANCIAL IMPLICATIONS:
The 2025 budget and requisition request of $6,285,001 is an increase of $235,915 or 3.90% over the approved 2024 budget requisition.
Grant Brown, Administrator
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