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HomeMy WebLinkAboutCAP 2016-08-08 Item 2A - Budget - 2017-2018 Biennial Budget for Foster Golf CourseCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Community Affairs and Parks Committee FROM: Rick Still, Parks and Recreation Director CC: Mayor Ekberg DATE: July 20, 2016 SUBJECT: Preliminary Review of Foster Golf Links 2017 -18 Budget ISSUE This is the first look at the preliminary 2017 -18 Budget for the Foster Golf Links. BACKGROUND As a part of the revised budget review schedule to allow the City Council more dialogue regarding the budgets, the enterprise funds are going to council committee first. Attached you will find the pages directly related to the 2017 -18 operating budget for Foster Golf Links. DISCUSSION The budget process has included the departments completing the revenue and expenditure line items that they have control over. Then, the Finance Department completed the budget by filling in staff salaries and benefits, the costs from Public Works fleet, indirect cost allocation and public utilities. The budget will be adjusted to balance as revenue and expenditures are reviewed at more in -depth by staff. A few items will be brought to the Community Affairs and Parks Committee meeting on Monday for discussion to help everyone better understand the Foster Golf Links budget: GASB -68, depreciation adjustment, equipment rental replacement and O &M, Surface Water fees, Admission Tax, golf cart replacement program, indirect cost allocation, the 20 -year golf capital improvement plan and Attachment G. ATTACHMENT Foster Golf Links Preliminary 2017 -18 Budget 2 Foster Golf Links Preliminary 2017 -18 Budget, July 25, 2016 DEPARTMENT: Parks & Recreation FUND: Golf Course FUND NUMBER: 411 RESPONSIBLE MANAGER: Rick Still POSITION: Director Description The mission of Foster Golf Links (FGL) is to provide a quality golfing experience for those that live, work, and play in Tukwila. The golf course is operated as an enterprise fund with revenues covering all maintenance, pro shop services, and capital costs. 2015 -2016 Accomplishments ♦ Developed and implemented a Reward's Card Program to acknowledge customer loyalty and strengthen our core customer base. Strategic Goals 3 & 4. PROS Plan Goal 5. ♦ Strengthened our player engagement program by promoting PGA of America's "Get Golf Ready" Program. Strategic Goals 2, 3, & 4. PROS Plan Goals 2, 3, 4, & 5. ♦ Implemented new Junior Golf Program by holding junior camps, private instruction, and participated in the Jr. PGA Golf program. Strategic Goals 2 & 4. PROS Plan Goals 2, 3, 4, & 5. ♦ Expand partnership with restaurant concessionaire to meet the needs of the customers and community and extend agreement for seven years. Strategic Goals 2, 3, & 4. PROS Plan Goals 3 & 4. ♦ Implemented Cart Replacement Plan. Strategic Goal 4. PROS Plan Goals 3 & 5. 2017 -2018 Outcome Goals ♦ Continue with Cart Replacement Plan. Strategic Goal 4. PROS Plan Goals 3 & 5. ♦ Improve operational efficiency and sustainability, and develop maintenance management plan. Strategic Goal 1, 4, &5. PROS Plan Goals 4 & 5. ♦ Continue implementing deep tine aerification program. Strategic Goal 4 & 5. PROS Plan Goals 4 & 5. ♦ Perform capital improvements at the course for playability and sustainability. Strategic Goal 4 & 5. PROS Plan Goals 4 & 5. ♦ Continue to expand our player engagement program to increase access to FGL. Strategic Goals 2, 3, & 4. PROS Plan Goals 2, 3, 4, & 5. 2017 -2018 Indicators of Success ♦ Increased rounds of play. ♦ Additional new customers. ♦ Improved satisfaction with equipment. ♦ Better drainage on course, reduced soft spots, and healthier turf. ♦ Increased use of carts on course (not regulated to cart path only) during shoulder months. 3 Foster Golf Links Preliminary 2017 -18 Budget, July 25, 2016 Revenue and Expense Summary Foster. Golf Course Find Reconcilaiton to Financial Statements 2014 2015 2016 2017 2018 2016 -2017 2017 -2018 Networking capital (Fund Balance) Actual Actual Budget Budget Budget '%o Change '%" Change Operating Revenue 7,217,532 6,132,364 5,904,327 5,686,629 5,478,801 -3.69% -3.65% Charges for Services 7,932,071 $ 6,273,982 $ 6,044,296 $ 5,815,367 $ 5,608,889 - 3.79% - 3.55`%, Green Fees, Instruction 961,495 1,021,705 1,065,000 1,095,650 1,145,650 2.88% 4.56% Sales of Merchandise 159,686 150,247 155,000 151,000 151,000 - 2.58% 0.00% Rents and Concessions 282,228 299,547 288,000 306,000 309,000 6.25% 0.98% Total Charges for Services 1,403,410 1,471,499 1,508,000 1,552,650 1,605,650 2.96% 3.41% Miscellaneous Revenue Excise Taxes 3,151 3,927 2,617 3,900 3,900 49.03% 0.00% Investment Earnings 392 952 1,130 1,000 1,000 - 11.50% 0.00% Sale of Capital Assets - (455) - - - 0.00% 0.00% Other Misc Revenue (513) 6,365 - 7,000 7,000 0.00% 0.00% Total Miscellaneous Revenue 3,030 10,789 3,747 11,900 11,900 217.59% 0.00% Transfers In 600,000 300,000 300,000 300,000 300,000 0.00% 0.00% Total Operating Revenue 2,006,440 1,782,288 1,811,747 1,864,550 1,917,550 2.91% 2.84% Operating Expenses Salaries & Wages 698,112 706,164 706,489 720,017 738,149 1.91% 2.52% Personnel Benefits 241,978 225,993 256,075 306,699 328,596 19.77% 7.14% Supplies 194,344 275,840 259,335 203,415 203,415 - 21.56% 0.00% Services 252,795 310,253 297,744 348,351 345,123 17.00% -0.93% Intergov't Services & Taxes 63,051 67,190 66,400 66,400 66,400 0.00% 0.00% Total Operating Expenses 1,450,281 1,585,439 1,586,043 1,644,882 1,681,683 3.71% 2.24% Capital Expenses Capital Outlay 47,967 - 50,000 50,000 50,000 0.00% 0.00% Total Capital Expenses 47,967 - 50,000 50,000 50,000 0.00% 0.00% Indirect cost allocation 197,486 173,909 177,352 180,899 184,517 2.00% 2.00% Total Expenses 1,695,734 1,759,348 1,813,395 1,875,781 1,916,200 3.44% 2.15 " /o Change in Fund Balance 310,705 22,941 (1,648) (11,231) 1,350 581.52% - 112.02% Adjustments to working capital Operatin Prior Period Adjustment (206,154) (596,317) - - - 0.00% 0.00% Networking capital (Fund Balance) 714,539 141,617 139,969 128,738 130,088 - 8.02% 1.05% Reconcilaiton to Financial Statements Networking capital (Fund Balance) 714,539 141,617 139,969 128,738 130,088 Net Investment in Capital Assets 7,217,532 6,132,364 5,904,327 5,686,629 5,478,801 -3.69% -3.65% Total Net Position $ 7,932,071 $ 6,273,982 $ 6,044,296 $ 5,815,367 $ 5,608,889 - 3.79% - 3.55`%, Non -Cash Adjustments to Capital Assets Capital Prior Period Adjustment - 757,473 - - - 0.00% 0.00% Depreciation 298,023 327,238 278,037 267,698 257,828 - 3.72% -3.69% 0 Foster Golf Links Preliminary 2017 -18 Budget, July 25, 2016 Expenditure Detail - Salaries and Benefits Salaries for budgeted positions are based on actual costs for existing positions and include a cost of living adjustment per contract agreements. Foster Golf Course Position Description 2016 FTE 2017 FTE 2017 Budget Salaries Benefits 2018 FTE 2018 Budget Salaries Benefits Director of Instruction - Golf 1 1 $ 81,744 $ 42,598 1 $ 83,760 $ 45,880 Golf Maintenance Supervisor 1 1 81,744 39,318 1 83,760 42,338 Lead Maintenance Specialist - Golf 1 1 76,800 38,322 1 78,900 41,315 Fleet Technician Golf 1 1 72,480 25,145 1 74,232 27,044 Admin Support Technician - Golf 2 2.5 146,820 71,540 2.5 150,861 77,013 Maintenance Specialist Golf 2.25 2.25 146,389 61,011 2.25 152,596 66,240 Extra Labor 112,000 21,302 112,000 21,302 Overtime 2,040 156 2,040 156 Unemployement - 6,120 - 6,120 Clothing Allowance - 1,187 - 1,187 Department Total 8.25 8.75 $ 720,017 $ 306,699 8.75 $ 738,149 $ 328,596 5 Foster Golf Links Preliminary 2017 -18 Budget, July 25, 2016 Expenditure Detail - Supplies, Services, and Other Supplies include irrigation, fertilizers, etc. for grounds maintenance and small tools. Services include security, utilities, rental of equipment, insurance, repairs & maintenance for course equipment, rental and maintenance charges, and memberships, among others. Intergovernmental includes admission taxes paid to the City. Capital includes upgrades to tees and greens. Foster Golf Course - Operations i 2014 2015 2016 2017 2018 Account Number Purpose Actual Actual Budget Budget Budget Supplies 411.00.576.680.31.00 Supplies - Office & Operating $ 268 $ 2,461 $ - $ 2,400 $ 2,400 411.00.576.680.31.02 Supplies - Grounds Maintenance 26,776 36,401 52,530 40,000 40,000 411.00.576.680.31.03 Supplies - Irrigation 1,896 7,052 7,140 7,000 7,000 411.00.576.680.31.04 Supplies - Fertilizers & Misc. Chemicals 46,900 44,205 42,840 45,000 45,000 411.00.576.680.35.00 Small Tools & Minor Equipment - Tools 3,520 1,951 66,810 4,000 4,000 for course Total Supplies 79,360 92,069 169,320 98,400 98,400 Services 411.00.576.680.41.00 Prof Svcs - Geese control 3,848 10,969 3,672 5,000 5,000 411.00.576.680.42.00 Communication - Phones, alarms and 440 1,563 1,377 1,521 1,521 monitoring 411.00.576.680.43.00 Travel - Meals, mileage, parking for 626 - 765 300 300 professional development travel 411.00.576.680.44.00 Advertising 299 - - - - 411.00.576.680.45.00 Rental - Bottled water, portable toilet 1,708 1,001 2,448 2,448 2,448 rentals, short term rental equipment 411.00.576.680.45.94 Rental - Equipment Replacement Fund 55,689 80,751 87,729 105,616 100,226 411.00.576.680.45.95 Rental - Equipment O & M 38,370 45,203 60,456 50,845 50,610 411.00.576.680.46.00 Insurance - WCIA 16,464 1,217 19,465 - - 411.00.576.680.46.01 Insurance - WCIA - - - 23,971 26,368 411.00.576.800.46.04 Insurance - Flood - 18,538 - - - 411.00.576.680.47.00 Public Utility - Puget Sd Energy - pump 9,017 - 10,200 - - stations, water - course restrms, maintenance shed 411.00.576.680.47.21 Electric - 11,338 - 12,000 12,000 411.00.576.680.47.22 Gas - 604 - 700 700 411.00.576.680.47.25 Water /Sewer - 6,083 - 6,200 6,200 411.00.576.680.47.26 Surface Water - 28,649 - 31,000 31,000 411.00.576.680.47.01 Public Utility - SSWM charges 23,875 - 21,209 - - 411.00.576.680.47.09 Public Utility - Puget Sound Energy, City 7,545 3,727 5,610 4,000 4,000 water -wash bay and maintenance bldg 411.00.576.680.48.00 R &M -Contracted parking lot 12,701 6,636 7,140 10,000 10,000 maintenance, fire alarm test, misc. repairs 411.00.576.680.48.01 R &M - Professional Tree Removal - - - 6,000 6,000 411.00.576.680.48.03 R &M - Pump station and river pump, 9th 821 2,828 2,448 3,000 3,000 fairway pump station 411.00.576.680.49.00 Misc - Memberships, uniform cleaning, 2,347 1,891 2,244 2,000 2,000 prof dev, WWGCSA mem, WSDA cert. 411.00.576.680.49.01 Misc - - - 255 - - Total Services 173,750 1 220,999 1 225,018 1 264,601 261,373 i Foster Golf Links Preliminary 2017 -18 Budget, July 25, 2016 Expenditure Detail - Supplies, Services, and Other, Continued Foster Golf Course - 'Operations, Con't Intergovernmental 411.00.576.680.54.01 Intergovernmental - Admission Taxes 56,917 60,491 60,000 60,000 60,000 Total Intergovernmental 56,917 60,491 60,000 60,000 60,000 Other 411.00.594.760.63.05 411.00.594.760.64.00 Capital - Tees & Greens Capital - 47,967 - - 50,000 - 50,000 - 50,000 r - Total Other 47,967 - 50,000 50,000 50,000 Total Supplies, Services and Other $ 357,994 1 $ 373,558 $ 504,338 $ 473,001 $ 469,773 7 Foster Golf Links Preliminary 2017 -18 Budget, July 25, 2016 Services for the Pro Shop include supplies for the shop and resale items. Services include annual required testing, advertising, utilities, rental of equipment, repair & maintenance, and memberships, among others. Intergovernmental includes excise tax paid on revenue earned. Foster Golf Course - Pro Shov 59 Ell 2014 2015 2016 2017 2018 Account Number Purpose Actual Actual Budget Budget Budget Supplies 411.00.576.681.31.00 Supplies -Office & Operating $ 4,441 $ 6,102 $ 2,040 $ 6,415 $ 6,415 411.00.576.681.31.01 Supplies - Building 3,384 1,514 4,080 - - 411.00.576.681.31.02 Supplies - Rental 491 1,113 255 500 500 411.00.576.681.31.04 Supplies - Repair 2,133 2,356 2,040 1,500 1,500 411.00.576.681.34.01 Supplies - Pro Shop (Resale) 104,536 109,128 81,600 66,000 66,000 411.00.576.681.34.02 Supplies - Concessions - - - 15,600 15,600 411.00.576.681.34.03 Supplies - Special Order (Resale) - - - 15,000 15,000 411.00.576.681.35.00 Tools /Small Equip - Golf Carts - 63,557 - - - Total Supplies 114,984 183,771 90,015 105,015 105,015 Services 411.00.576.681.41.00 Prof Svcs - SZEN annual support - Online 6,471 5,334 6,120 4,400 4,400 Tee Reservation, Advertising and artwork, Orbit: Webpage 411.00.576.681.42.00 Communication - Phone, cable and alarm 3,285 1,871 3,876 4,150 4,150 monitoring 411.00.576.681.43.00 Travel - Meals, mileage, parking for 176 78 - 200 200 professional development related travel 411.00.576.681.44.00 Advertising - Misc advertising expenses 1,481 8,232 4,080 4,000 4,000 411.00.576.681.45.00 Rental - Special event fleet rental and 3,603 5,816 1,020 5,000 5,000 portable toilet rentals 411.00.576.681.47.00 Public Utility - City Light, Puget Sound 12,701 (27,685) 8,160 (32,000) (32,000) Energy, Sound Security 411.00.576.681.47.21 Electric - 39,360 - 40,000 40,000 411.00.576.681.47.22 Gas - 1,444 - 1,500 1,500 411.00.576.681.48.00 R &M - Cart maintenance and repair, 22,836 22,052 10,200 20,000 20,000 Clubhouse oil separator, building repair & window washing, HVAC maintenance 411.00.576.681.49.00 Misc - Memberships - Nat'l Golf 7,255 9,145 8,670 8,500 8,500 Foundation, PGA, PNGA, UAGA, Cintas mat /laundry svc, professional development, misc. 411.00.576.681.49.01 Misc - Printing of score cards, brochures, 958 - 3,060 3,000 3,000 forms 411.00.576.681.49.08 Misc - PPI credit card fees 20,278 1 23,608 27,540 25,000 25,000 Total Services 79,045 89,254 72,726 83,750 83,750 Other 411.00.576.681.53.00 Intergovernmental - Excise tax 6,134 6,699 6,400 6,400 6,400 Total Other 6,134 6,699 6,400 6,400 6,400 Total Supplies, Services and Other $ 85,179 $ 95,954 $ 79,126 $ 90,150 $ 90,150 59 Ell