AGENDA #4e
|
TO: |
Roger L. Stancil, Town Manager |
|
FROM: |
Kay Johnson, Finance Director Bill Webster, Interim Director of Parks and Recreation |
|
SUBJECT: |
Budget Amendment for Parks and Recreation Community Center and Aquatic Divisions |
|
DATE: |
March 26, 2007 |
This attached budget ordinance would adjust the FY 2006-07 budget for longer than expected operation of the Community Center.
In June 2006, the Council enacted a budget ordinance that anticipated the closure of the Community Center beginning on October 1, 2006.
In October 2006 Lomax Construction Company, the general contractor for the renovation of the Community Center, informed Town staff that they would not need to take control of the building until January 2, 2007.
Staff completed the task of removing furniture, equipment, and supplies from the building on January 1, 2007. The building was turned over to the contractor on January 2, 2007.
From October 1, 2006 until December 31, 2007, we operated the Chapel Hill Community Center on a regular schedule. The building was open 7 days a week, 12 to 18 hours per day. During that period we paid for staff services and utilities that were not covered in the department’s original budget.
We also anticipate that moving the Community Center summer camp to a school facility will cost about $4,300 more than anticipated due to rental and janitorial fees.
Upon notice of the closure of the building all employees were offered continued employment within the Parks and Recreation Department. However, one employee chose to resign and a second asked for and received permission to take an extended leave of absence. These actions have resulted in about $10,000 in lapsed salary, which have partially offset the increased expenditures.
Although we could not hold classes that required time for planning and marketing, we were able to continue to collect revenues for activities such as lap swimming, gym passes, and the climbing wall. In most areas we experienced significant revenue increases above projected amounts during the three months of extended operation. However, we overestimated pool pass revenues in the FY 2006-07 budget. Most patrons chose to not purchase pool passes due to the anticipated closure. For this reason we have only about $1,000 in additional revenues above originally projected amounts for the October to December 2006 period.
We believe that the unplanned operation of the Center has resulted in the need to amend the Parks and Recreation Department’s budget in the following manner:
|
Increased costs of operating the Community Center Division |
29,500 |
|
Increased costs of operating the Aquatic Division |
17,600 |
|
Offsetting revenues |
-1,000 |
|
|
|
|
Total Recommended Budget Increase |
46,100 |
Funds for the budget increase would come from fund balance.
Staff Recommendation: We recommend that the Council enact the attached budget ordinance that would increase both the Expenditure and Revenue portion of the Parks and Recreation Department’s FY 2006-07 budget to reflect three months of operation of the Chapel Hill community Center beyond the originally anticipated closure date of October 1, 2006 and the continued operation of the Community Center camp.