Leisure Services - Budget Hearing Response HandoutMasterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
Jenny Larson, Budget Director
FROM: Marie L. Ware, Leisure Services Manager
SUBJECT: Question During Budget Hearing
DATE: February 28, 2014
INTRODUCTION
Dubuque
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All-American,/
111111,
2007 • 2012 • 2013
The purpose of this memo is to share information related to a question during the
Recreation Division's budget hearing.
BACKGROUND
During the hearing a question was raised that needed follow-up. The essence of his
question was as follows: "In two years you are up 63% in money from $1.3 million to
$1.7 million, up $400,000 in two years for employees. Final numbers are your budget is
63% higher than it was a year ago. Can you talk about that a little bit and shed some
light on that?"
DISCUSSION
As the attached chart shows, the employee expense line item from FY13 to FY15 is
$1,364,210 to $1,752,822. The bottom of the first sheet shows this difference is
accounted for by additions of staff for the marina, the change of our golf pro from a
contracted position to employee, wage increases, increases in IPERS and health
insurance costs, sick leave payout and an increase in hours for assistant golf pro due to
more tournaments. The golf pro was changed to employee status based on
recommendations from a city audit.
The comparison of the two columns, FY13 actual and FY15 recommended budget is not
necessarily an apples -to -apples comparison. As we finish a fiscal year, actuals many
times varies greatly from budget especially the recreation budget. For example, the
weather is a prime factor for how many days the golf course is open and how many
hours. it operates. This changes the employee expense item from what we budgeted to
1
actual conditions. This was true in 2013 when we didn't open the golf course until April
5th yet in 2012 we opened for play on March 13th.
If we did compare apples -to -apples the budget for FY13 employee cost was $1,445,760
to the actual FY13 employee expense shown as $1,364,210. In this same comparison
FY13 budget vs. FY15 recommended budget would be 21% vs. 28.5% shown. The
good news was that in FY13 our actual expenses were lower than our budgeted
expense..
As the chart shows the 63% increase is in the property tax support line. Again with the
comparison of actual to budget it does show 63% increase. The budget for FY13
showed the property tax support at $952,232 whereas our actual ended up at $780,580.
If comparing FY13 budget to FY15 recommended budget there is a drop from 63% to
33.6%. Every year in the Recreation Division we strive.to increase revenues and
control expenditures. We have really had a great staff working hard on innovative
programs and boosting attendance at our facilities. FY13 was a good year for us.
The recommended marina budget has its first full year of impact in the FY15 budget. As
was shared with you and the Council we are in the years to build the business.
Expenses are greater than revenues. Those expenses and revenues are reflected in
the employee, supplies and revenue lines off the recommended budget and thus
increased property tax support by $104,291 in the FY15 recommended budget. Other
changes have resulted from cuts to CDBG funding which moved some youth
recreational programming expense from CDBG funded to property tax funded.
A look back at our self supporting percentage shows that since FY 2005 the Recreation
Division has ranged from a low of 61.6% in FY11 to a high of 75.9% in FY05. The
average is 70.2%. In FY13 as shown, we ended with 67.2%.
ACTION REQUESTED
This memo is for informational purposes only.
MLW:et
attachment
copy Dan Kroger, Recreation Division Manager
2
LEISURE SERVICES - RECREATION DIVISION
FY 2013 to FY2015 Expenditure and Revenue Increases Explained
Expenditures
Employee Expense
Supplies and Services
Machinery and Equipment
Revenue
Operating Revenue
CDBG Funds
Golf Development Fund
Transfer
Debt on Projects paid with
Sales Tax Fund (30%)
Property Tax Support
Percent Self Supporting
Personnel - Authorized FTE
FTE Increase
FY13 Actual
FY14 Amended
FY15 Recommended
Total
Employee Expense
Full-time
Part-time
Seasonal
IPERS
Social Security
Health Insurance
Workers Comp
Sick Leave payout
Total
FY 2012/13 FY 2013/14 FY 2013/14 FY 2014/15
Actual Adopted Amended Recomm'd
1,364,210
977,397
35,167
2,376,774
1,581,117
1,003,324
64,550
2,648,991
1,629,865
1,289,473
92,188
3,011,526
1,752,822
1,172,019
83,900
3,008,741
1,413,263 1,505,187 1,613,607 .1,605,375
130,689 130,994 135,549 131,596
52,242
1,596,194 1,636,181 1,749,156 1,736,971
260 2,247 2,247 15,644
780,580 1,012,810 1,262,370 1,271,770
67.2% 61.8% 58.1% 57.7%
37.73 38.73 41.37 41.65 3.92
FY15 Recommended Budget
Tess FY13 Actual
Dollar Amount Percent Growth
388,612
194,622
48,733
631,967
28.5%
19.9%
138.6%
26.6%
192,112 13.6%
907 0.7%
(52,242) -100.0%
140,777 8.8%
15,384 5916.9%
491,190 62.9%
1.00 fte
2.64 fte
0.28 fte
3.92 fte
Golf Pro moved from contract employee to part-time (+0.94), Secretary (+0.13) & Field Supervisor (-0.07)
Marina (Facilities supervisor +1.00 fte, Marina Cashier/Clerk +0.97 and Dock Worker +0.67)
Asst Golf Pro (+0.78), Pro Shop Attendant (-0.03) Concession Worker (-0.44), & Field Supervisor (-0.03)
188,844 FY13 under spent by $132,159 due to vacancies / FY14 2.5% increase
18,817 FY14 part-time secretary and golf pro moved from contract pro to employee per audit recommendation
84,472 FY14 addition of seasonal Marina staff
19,155 FY14 increase from 8.67% to 8.93.% $2,209 / FY15 no change / increase in fte's
22,773 Social security rate remains at 7.65%, increase due to filling vacant positions and new positions
37,982 FY14 increase from 835 per month to 1,015 $17,129 / FY15 increase from 1,015 to 1,190 $20,853
9,954 FY14 and FY15 based on prior year actuals
5.348 Sick leave payout for three retirees
387,345
Supplies & Services
Marina
Machinery & Equipment
Operating Revenue
Marina
Bunker Hill
Total
Property Tax Support
Growth
234,862 Includes all supplies and services from utilities, consumables, insurance, etc.
48,733 Purchases vary from year to year depending on equipment replacement cycles
114,484 Marina revenue includes fuel sales, slip rental and various consumables from the Marina Shop
83 227 Golf revenue increase each year through raising fees each year to maintain self-supporting course
197,711
62.9% Property tax support for the Recreation Division grew 62.9% from FY13 actual expenditures to the
FY15 recommended budget. During this same period revenue generated by the department
increased by 8.8%. Although revenue growth is strong, the growth in expenditures outpaced
revenues due to the addition of the Port of Dubuque Marina (includes operating expense and 2.64
fte's), vacant positions and related salary savings in FY13, the golf pro shifting from a contract
position to a part-time position and general salary increases and related employee expense.