WSPR STAFF REPORT - 2021 Budget and Requisition Request

MUNICIPAL OWNERS

WSPR STAFF REPORT

RECOMMENDATION:

That the West Shore Parks & Recreation Society Members review and approve the West Shore Parks & Recreation Society 2021 budget and requisition request as presented.

BACKGROUND:

On November 25, 2020 the West Shore Parks & Recreation Society Board of Directors moved THAT THE DRAFT 2021 WSPR BUDGET AND THE DRAFT 2021-2022 FEES AND CHARGES BE APPROVED AND PRESENTED TO COUNCIL MEMBERS.

Included in this package you find the above noted financial information for the West Shore Parks & Recreation Society. The package has been divided into sections to aid in analysis: Five-Year Financial Plan 2021 to 2025, 2021 Budget Comparison 2021 to 2020, 2021 Capital Summary, Reserve Continuity, Requisition Request, Assessment Totals, Impact to Taxation, Operating Income and Operating Summary.

The Five-Year Financial Plan layout has been redesigned to provide the same look and feel as the Financial Plan Bylaw completed by each of the municipalities.

DISCUSSION:

The 2021 West Shore Parks & Recreation Society’s requisition request is for $5,268,635, which is a $197,596, or 3.90% increase over the 2020 approved requisition. The proposed budget considers a full year of continued operations with reduced services due to Covid-19.

The proposed budget does not include the costs for re-opening the pool facility in 2021. A separate request from the Covid-19 Safe Restart Grant has been submitted. The total request to re-open the pool facility is $690,636. This request will fund the pool facility’s net operating costs for 2021.

The 2021 budget includes the following:

• Non-discretionary increase in expenses:
  • Collectively bargained wage increases $142,000
  • Various Utility increases $5,303
  • Insurance Premium increases $14,963
  • The estimated increased costs for utilities would have been $30,490 higher for 2021. These estimates have been reduced to meet the reduced facility use expectations due to Covid-19.
• Net Expenditure decreases due to Covid-19:
  • Overall $2,826,776 reduction of operation costs due to Covid-19.
• Net Revenue decreases due to Covid-19:
  • Overall $3,024,372 reduction of budgeted revenue due to Covid-19.
• Major Capital projects include:
  • Vehicle Replacement: $192,000
  • JDF Emergency Generator Service: $39,000
  • Pool Diving Boards: $20,000
  • Pool Main Filter: $135,000
  • Q Centre Heat Exchange: $30,000
  • Q Centre Floor LED Lighting: $45,000
  • Childcare Centre Completion: $2,799,465
  • JDF Arena Floor Replacement Completion: $998,271
  • Recreation Software Replacement Completion: $125,000
  • Skate Park (dependant on grant funding): $1,075,000
• Reserve fund transfers totalling $5,575,736
  • Fitness Equipment Reserve $20,000 (contribute $80,000 annually)
  • Childcare BC New Spaces Grant $2,299,465
  • UBCM Childcare Spaces Grant $500,000
  • Federal Infrastructure Improvement Grant $998,271
  • Community Economic Recovery Infrastructure Grant $1,075,000 (application submitted October 2020)
  • Equipment & Maintenance Reserve $683,000

Total operating changes: Net Expense increased $197,596

Total capital changes: Net Expense maintained

FINANCIAL IMPLICATIONS:

The 2021 budget and requisition request of $5,268,635 is an increase of $197,596 or 3.90% over the approved 2020 budget requisition.

Grant Brown, Administrator