Memorandum

City of Lawrence

City Manager’s Office

 

DATE:

02/14/2013

TO:

David L. Corliss, City Manager

FROM:

Casey Toomay, Budget Manager

CC:

Cynthia Wagner, Assistant City Manager

Diane Stoddard, Assistant City Manager

Jonathan Douglass, Assistant to the City Manager / City Clerk

RE:

Parks and Recreation Department Budget Summary

 

Per your request, a summary of the 2013 Parks and Recreation Fund Budget is provided below.

 

Background

The City’s Operating and Capital Improvement Budget is made up of fourteen separate budgeted funds.  Each fund, which must be authorized by State budget laws, has a unique set of revenues and expenditures.  One advantage to having separate funds is that it helps ensure resources are spent appropriately.  For instance, revenues generated at the golf course should only be used for golf course expenses.  One disadvantage is that many departments have expenses paid from multiple funds making it difficult to see the entire funding picture.  For instance, the Parks and Recreation Department budget is made up of five different City Funds. 

 

2013 Parks and Recreation Budget

Table 1 summarizes the total budget for Parks and Recreation for 2013.  In addition to these budgeted funds, the City has reserve funds that are sometimes used to fund major capital improvements or major equipment purchases for parks and recreation.  A reserve fund to account for the city’s share of the countywide sales tax is also used for maintenance and debt service payments for parks and recreation facilities. 

 

Table 1.  2013 Parks and Recreation Expenditure Budget – All Budgeted Funds

Fund Name

Budget

General Operating Fund

  $3,272,174

Recreation Fund

 $4,047,866

Special Recreation Fund

 $707,123

Public Parking Fund

 $210,862

Public Golf Course Fund

  $1,102,470

TOTAL ALL FUNDS

 $9,340,495

 

Additional information about each budgeted fund, including descriptions of the major revenue sources and expenditures, can be found below.   

 

General Operating Fund.  Often called the General Fund, this fund is used to account for resources traditionally associated with government which are not required to be accounted for in another fund.  Major revenues include property taxes, franchise fees, sales taxes, traffic fines and court fees, and building permit fees.  Cemetery fees are the only revenues directly related to parks and recreation that are accounted for in this fund.  Parks and Recreation expenditures from the General Fund include staffing, equipment and supplies related to park facility maintenance, recreation facility maintenance, ball diamonds, construction, landscape/ forestry operations, and department administration.

 

Recreation Fund.  This fund is used to account for user fees derived from classes, sports leagues, and recreational and cultural events and the expenditures necessary to staff and operate the recreation programs at the City’s recreation centers and aquatic facilities.    

 

Special Recreation Fund.  This fund is used to account for one-third of the liquor tax received from the State of Kansas.  These funds are used to provide additional resources for recreational and cultural activities, including support for the Lawrence Cultural Arts Commission and scholarships for the Lawrence Arts Center.   

 

Public Parking Fund.  This fund is used to account for the operation of all parking facilities owned by the City. Revenues include meter parking and overtime parking fines, as well as parking pass sales.  In conjunction with public works, the Parks and Recreation Department provides maintenance and landscaping for parking lots, arcades and planters along Massachusetts Streets. 

 

Public Golf Course Fund.  This fund is used to record the activities of Eagle Bend Golf Course.  Revenues include greens fees, as well as concessions and pro shop sales.  The funds are used for expenditures necessary to carry out the operations and maintenance of this municipal golf course.  The debt service payments for the golf course are not paid from this fund.  Instead, this debt is paid from the city’s share of the countywide sales tax. 

 

Sales Tax Reserve Fund.  While not a budgeted fund, the City has a fund to account for some of the city’s share of the countywide sales tax.  Each year, $500,000 is set aside to use for park and recreation facility improvements.  A list of recent improvements paid for from this fund is attached. 

 

Proposed Recreation Center Impact on Budget

The proposed recreation center will have an impact on the Parks and Recreation Budget.  Specifically, the budget in the Recreation Fund will be increased to fund the operations of the new facility by approximately $1,000,000.  However, revenues from the classes, sports leagues, tournaments and other events hosted at the new facility will help fund these increases.  The difference will be paid with proceed from the city’s share of the countywide sales tax.  The debt service payments from the Sales Tax Reserve Fund will also increase.  However, because debt for a number of existing parks and recreation facilities and projects will be paid off soon, the net increase will be small. 

 

There should be no impact from the proposed recreation center to the General Operating Fund, the Public Parking Fund, Special Recreation or Public Golf Course Fund.

 

The infrastructure improvements related to this project will be funded through the issuance of General Obligation debt, which will be paid with existing property taxes.  No increase in the mill levy will be necessary.