|
APPROPRIATION COMMITTEE-2017 ATM
<br /> It should be noted that strong irrigation water sales during the extraordinarily dry summer of 2016, although
<br /> partially taken into account during last fall's FY2017 rate-setting, are likely to generate significant operating
<br /> surpluses at the end of this fiscal year, and therefore a higher ending fund balance than the projection shown
<br /> above for the water enterprise fund. Any such increase in retained earnings would again be available for capi-
<br /> tal investment in the FY2019 budget.
<br /> Recreation Enterprise Fund
<br /> Early in 2015, the Recreation Department was reorganized as the Department of Recreation and Community
<br /> Programs (DRCP), resulting in increased costs for operations and programs. The Director of Recreation and
<br /> Community Programs, through the Recreation Committee, continues to set fees with the approval of the
<br /> Board of Selectmen.
<br /> The multi-year budget growth from 2015 has been due to the inauguration of the Lexington Community Cen-
<br /> ter (LexCC). The FY2016 LexCC budget included $383,073 to fund 5.5 full time and seasonable staff to
<br /> plan,manage and deliver community programs along with the supplies needed.
<br /> Recreation Enterprise Fund FY2016 FY2017 FY2018 Dollar cyo
<br /> Actual Approp. Requested Increase Change
<br /> Compensation $1,034.703 $1,190.742 $1,308.669 $117,926 9.9%
<br /> Expenses $1,075,222 $1,335,545 $1,316,445 ($19,100) -1.43%
<br /> Debt Service $100,000 $100,000 $100,000 - 0.0%
<br /> Total Requested in Article 5 $2,210.425 $2,626,287 $2,725,114 $98,827 0.9%
<br /> Indirect Expenses (Transfer to $240,608 $247,826 $254,826 $7,000 2.82%
<br /> General Fund)
<br /> Total $2,451,033 $2,874,113 $2,979.940 $105,827 3.68%
<br /> The operational costs of all programs offered by the DRCP are designed to be revenue-neutral,with charges to
<br /> users matching the program's operating costs. However,to supplement the overall increases in cost of opera-
<br /> tion and programming of the LexCC, the motion includes a transfer of $253,007 in tax levy funds into the
<br /> Recreation Enterprise Fund,which would be appropriated under this article.
<br /> Debt service costs are unchanged at$100,000.
<br /> The major factor for the 3.68% increase over the 2017 budget is the increase in the hourly rate for seasonal
<br /> staff required by state minimum wage increases.
<br /> Sources of revenue include $375,000 from the Recreation Enterprise Fund retained earnings, $1,012,996 from
<br /> user fees for recreation, $454,810 from registration fees for Community Center programs, and $775,000 from
<br /> golf fees at Pine Meadows Golf Course. The revenue from fees is based on projections. Projected revenue
<br /> from golf fees is $25,000 lower than the previous year based on actual usage figures.
<br /> The Recreation Enterprise Fund contributes to the debt service on some recreation capital projects, in particu-
<br /> lar the Lincoln Field restoration project. However, most recreation capital costs are subsidized by the General
<br /> Fund through a combination of within-levy debt, excluded debt, and Community Preservation Act (CPA)
<br /> funding.
<br /> The balance of retained earnings in the Recreation Enterprise Fund at the close of FY2016 was $999,250. A
<br /> withdrawal of$55,000 from this fund is proposed under Article 11 Recreation Capital Projects.
<br /> The Committee recommends approval of this request(9-0).
<br /> 21
<br />
|