WSPR STAFF REPORT - 2024 Budget and Requisition Request
Staff report from West Shore Parks & Recreation recommending approval of the 2024 budget and municipal requisition request.
WSPR STAFF REPORT
| TO: | West Shore Parks & Recreation Society Members |
|---|---|
| FROM: | Grant Brown, Administrator |
| DATE: | November 3rd, 2023 |
| SUBJECT: | 2024 Budget and Requisition Request |
RECOMMENDATION:
That the West Shore Parks & Recreation Society Members review and approve the West Shore Parks & Recreation Society 2024 budget and requisition request as presented.
BACKGROUND:
On October 12th, 2023, the West Shore Parks & Recreation Society Board of Directors moved THAT THE DRAFT 2024 WSPRS BUDGET BE PRESENTED TO COUNCIL MEMBERS FOR APPROVAL.
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 and includes the following: Five Year Consolidated Financial Plan, the Budget Comparison, Capital Summary, Reserve Continuity, Converted Assessments, Impact to Taxation, Requisition Request, Operating Summary and the Fees and Charges updates for 2024.
DISCUSSION:
The West Shore Parks & Recreation Society is projecting a $445,487 surplus for the 2023 fiscal year. Operating surpluses contribute to the Society’s general capital reserve and the 2023 contribution ensures a positive reserve balance throughout the enclosed 5-year financial plan. The majority contributor to the positive 2023 financial performance is an increase in program offerings and drop-in session attendance. WSPRS realized a 35% increase in single admissions and a 64% increase in pass sales which resulted in a 73% increase in pass scans as compared to the previous 12-month period. 2023 also saw a 58% increase in the number of swimming lesson participants, a 4% increase in outdoor facility hours rented and a 10% increase in the number of rounds played on the golf course.
The 2024 West Shore Parks & Recreation Society’s requisition request is for $6,049,086 which is a $232,657 or 4.00% increase over the 2023 approved requisition.
The 4.00% requisition increase includes a 2.33% or $135,657 increase to the operating budget and a 1.67% or $97,000 for additional annual capital reserve contribution. The additional contribution progresses the Society closer to achieving its goal of obtaining sufficient funds for the maintenance and replacement of existing infrastructure which had a 2022 appraised value of $111,778,400.
A few considerations with preparing the budget for 2024:
- Collective agreement negotiations: The current collective agreement expires in 2023 and WSPRS is currently 4% behind the region which is set to increase by an additional 3% in 2024, effectively putting WSPRS 7% behind the region on January 1st, 2024, until a new agreement is established.
- Insurance premiums: 10% premium increase is expected due to 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 – 10% expected utility rate increases.
The proposed 2024 – 2028 Financial Plan includes the following:
- Non-discretionary increase in expenses: $163,182:
- Utility increases: $97,277
- Insurance premium increases: $65,905
- In preparation for the upcoming collective agreement negotiations, the 2024 budget includes a wage increase contingency.
- The addition of a new Human Resources Specialist position that will provide additional administrative support at a value of $83,218. This position will coordinate and assist in the recruitment process which will allow supervisory and program staff to focus on delivering high quality programs and services, which will lead to better outcomes for both recruitment and program execution.
- Increased reserve contributions:
- A redirection of the Q Centre subsidy payments which completed at the end of 2023. As indicated in the 2023 – 2027 Financial Plan, these funds will contribute to the general capital reserve in 2024.
- A continued annual $60,000 increase to the capital reserve transfer as approved by the owners in 2021.
- A $20,000 fitness equipment reserve increase based on the value of the recent equipment replacement in 2023.
- A $10,000 school bus replacement reserve increase based on the value of the bus replacement in 2022.
- The establishment of a skatepark capital maintenance reserve which includes a $5,000 annual contribution for major repairs.
- The establishment of an electric car charging station reserve which includes a $2,000 annual contribution for the eventual replacement of the two stations.
- Fees and charges increase, effective September 2024.
- Average increases as follows:
- Admissions 3.53%
- Indoor facilities 4.43%
- Arenas 4.00%
- Outdoor facilities 4.95%
- Golf 4.59%
- Average increases as follows:
The 2024 capital plan includes the following projects and funding sources:
| CAPITAL FUNDING | 2024 Budget |
|---|---|
| Capital Reserve | (1,419,000) |
| Grant, Community and Member Contributions | (360,000) |
| Library Capital Reserve | (120,000) |
| TOTAL FUNDING | $ (1,899,000) |
| MAJOR SITE MAINTENANCE | |
| Q Centre Chiller | 300,000 |
| HR Offices & Meeting/Training space | 210,000 |
| JDF Arena MCP Panel | 100,000 |
| Q Centre Cooling | 80,000 |
| Q Centre AHU lobby and offices (2 units) | 60,000 |
| Site - HV Electrical maintenance | 45,000 |
| Pool/Reception AHU | 45,000 |
| Pool/Weightroom AHU | 45,000 |
| Preventive electrical maintenance | 40,000 |
| Fieldhouse Deck Posts | 20,000 |
| Q Centre Private Box Carpet | 20,000 |
| Pool Hot Water Storage tank | 7,500 |
| Q Centre Water Tanks | 7,500 |
| Q Center Freezer | 6,000 |
| Subtotal Major Site Maintenance | 986,000 |
| MAJOR PARKS MAINTENANCE | |
| Roadway Repair | 90,000 |
| JDF Lacrosse Box (Board Replacement) | 4,000 |
| Subtotal Major Parks Maintenance | 94,000 |
| FLEET | |
| TORO 4500 | 140,000 |
| SANDPRO | 50,000 |
| TORO WORKMAN HD | 50,000 |
| CHEV 1500 4WDR P/U | 40,000 |
| TORO PRO PASS | 24,000 |
| FORKLIFT 5000LB | 20,000 |
| 2 refurbished golf carts | 15,000 |
| Subtotal Fleet | 339,000 |
| LIBRARY CAPITAL EXPENDITURES | |
| Flooring replacement | 50,000 |
| Meeting room walls and door | 40,000 |
| Wall Carpet Sound Damping | 30,000 |
| Subtotal Library Capital Expenditures | 120,000 |
| NEW INITIATIVES | |
| Pickleball | 360,000 |
| Subtotal New Initiatives | 360,000 |
| TOTAL CAPITAL EXPENDITURES | $ 1,899,000 |
| NET CAPITAL | 0 |
*Note: the pickleball project is subject to securing grant funding which is included in the Grant, Community and Member Contribution value under Capital Funding.
Increase and impact to each municipality:
| REQUISITIONS | 2023 Budget (5.00% Increase) | 2024 Budget (4.00% Increase) | Increase | % Increase |
|---|---|---|---|---|
| Operating | $ (5,162,848) | $ (5,298,505) | $ (135,657) | 2.33% |
| Capital Contribution | (653,581) | (750,581) | (97,000) | 1.67% |
| TOTAL REQUISITIONS | (5,816,429) | (6,049,086) | (232,657) | 4.00% |
| REQUISITION REQUEST | ||||
| Colwood | (1,268,583) | (1,357,564) | (88,982) | 7.01% |
| Highlands | (209,377) | (211,580) | (2,203) | 1.05% |
| Langford | (3,137,471) | (3,276,205) | (138,735) | 4.42% |
| Metchosin | (432,640) | (435,092) | (2,452) | 0.57% |
| View Royal | (768,358) | (768,644) | (286) | 0.04% |
| TOTAL | $ (5,816,429) | $ (6,049,086) | $ (232,657) | 4.00% |
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 2024 budget and requisition request of $6,049,086 is an increase of $232,657 or 4.00% over the approved 2023 budget requisition.
Grant Brown, Administrator
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