Report Prepared by: Christopher Jensen, Director, Parks and Recreation
Title
SUBJECT: 2024-2025 Adopted City Manager’s Budget Report
REPORT IN BRIEF
Director Jensen will provide an update on the City Manager’s Budget Report.
RECOMMENDATION
Information only-no action required
Body
DISCUSSION
On May 20th 2024 City Council held their first public hearing to review the recommended City Managers 24/25 annual budget. Of specific concern to the Recreation & Parks Commission is the Parks & Community Services budget. Increased costs for insurance, workmans compensation, utilities, facility maintenance expenses and minimum wage increases all created a significant shortfall. The department went into budget sessions with a projected $800,000 deficit.
The Department was tasked with eliminating $160,000 worth of the deficit. Staff used a two-pronged approach, cutting expenses and increasing revenues. Expenses were cut primarily by reducing planned special events, part time staffing levels and training and travel allocations. In addition, the $35,000 Boys and Girls Club was reduced by $10,000.
Revenues were increased primarily through initiating field use fees for McNamara and Nannini Soccer Fields. Historically the City has waived official fees associated with field use to support recreational youth soccer programs ran by non-profits. However, that use has extended over the years into more and more field use and even into supporting adult teams use of fields. This is not a sustainable business model. Each soccer club will be provided one free recreational season each spring but will pay for any use outside of that starting July 1st. Field use rates are comparable to Los Banos, Turlock and other municipalities. The projected revenue from this transition is approximated to be over $70,000 annually. Currently each club donates between $6,000 and $12,000 a year to help offset cost of utilities.
Revenues were also projected to be increased by the development of annual sponsorships through local businesses. Sponsorships will include various levels but will be supported by recognition at City owned recreation and community service facilities such as banners in outfields and sponsorships of exhibits at Applegate Zoo.
The remaining budgetary shortfall of approximately $350,000 was proposed to be supported through an increased annual general fund allocation to Parks & Community Services. The initial budget projections suggested a 2% increase in expense to be paid for with the general fund and the revised projection suggests a 12% increase to Parks & Community Services from the General Fund. This will reduce the need to significantly cut anymore programming for the foreseeable future.
In addition, the City Managers budget includes several Park & Recreation facility upgrades. Below is a chart of the proposed Capital Improvements Projects (CIP’s).
City Council hosted two additional public hearings to review the City Managers budget, scheduled June 3rd and June 17th. The budget was adopted on June 17th.