WSPR STAFF REPORT - 2022 Budget and Requisition Request

WSPR STAFF REPORT

1767 Island Highway Victoria BC V9B 1JI PH: 250 478-8384 FX: 250 474-8624 www.jdfrecreation.com

RECOMMENDATION:

That the West Shore Parks & Recreation Society Members review and approve the West Shore Parks & Recreation Society 2022 budget and requisition request as presented.

BACKGROUND:

On November 18th, 2021, the West Shore Parks & Recreation Society Board of Directors moved THAT THE DRAFT 2022 WSPR BUDGET AND THE DRAFT 2022-2023 FEES AND CHARGES BE APPROVED AND PRESENTED TO COUNCIL MEMBERS.

Included in this package you will find 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 Comparisons, Capital Summary, Reserve Continuity, Requisition Request and Per Capita Costs, Assessment Totals, Impact to Taxation, Operating Summary and Fees and Charges.

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 2022 West Shore Parks & Recreation Society’s requisition request is for $5,539,381 which is a $270,745 or 5.14% increase over the 2021 approved requisition. The proposed budget includes a request to defer $209,513 of unspent COVID Restart funds from 2021 to 2022 to help offset costs to restart services while we recover from the impact of the COVID pandemic. Not including the deferral of these funds will result in a requisition increase of 9.14%, or an additional 4.00%.

The first review of the 2022 Budget in October included a 4.00% increase for 2022, and at the direction of the Municipal Owners we have added an additional contribution to capital for $60,000. The additional contribution progresses WSPRS towards its goal of obtaining sufficient funding for the maintenance and replacement of existing infrastructure. The transfer to general capital was $347,206 in 2020 and decreased to $237,206 in 2021. For 2022, we’re proposing to increase the transfer to $378,581 which matches the approved 5-Year Financial Plan from 2021.

One of the challenges with preparing the budget for 2022 has been adding back the pool operating costs. In 2021, $690,000 of restart funds were received to offset the cost of operating the pool. Utilizing the unspent COVID restart funds in 2022 helps soften the impact of adding the pool into the budget.

The 2022 budget includes the following:

• Non-discretionary increase in expenses $195,700:
  • Collectively bargained wage increases $112,000
  • Various utility increases $40,000
  • Insurance premium increases $35,000
  • Various service increases $8,700
• Major Repair & Maintenance projects include:
  • Vehicle Replacement $197,000
  • Lower Park High Power Switch $70,000
  • Pool Main Filter $90,000
  • Q Centre Floor LED Lighting $60,000
  • Lacrosse Box Score Clock $14,000
  • Fitness/Changeroom Roof $200,000
• Reserve fund transfers totalling $1,009,500:
  • Fitness Equipment Reserve $20,000 (contribute $80,000 annually)
  • Equipment & Maintenance Reserve $989,500
• Skate Park (if funding secured)
  • Project Cost $1,279,900
  • Canada Community Revitalization Fund of Western Canada Grant $627,151 (application submitted August 2021)
  • Remaining funds to be a combination of donations, fundraising and a financial plan amendment request as per the Operating, Maintenance and Management Agreement, which was discussed at the Owners Meeting on October 26th, 2021.

Total operating changes: net expense increased $270,745. Total capital changes: net expense maintained.

FINANCIAL IMPLICATIONS:

The 2022 budget and requisition request of $5,539,381 is an increase of $270,745 or 5.14% over the approved 2021 budget requisition.

Grant Brown, Administrator