Mcdonnell talked about this we need strategies to invest it was brought up over the weekend so im not sure what the funding by the way, a track for equipment and more ball 2350e8dz 3 dont take care of the playground but some investments it has been helpful tool perhaps we mind or want to thank lydia and others it is really helpful in getting into the weeds us and very, very proud of this report. Commissioner mcdonnell. Just briefly a appreciate the report and the diligence around the transparent and the commitment to the accountability it calls for it lob helpful goord not only the mechanism the rhythm of wanting to have ongoing updates for the annually is good so have it closer to realtime like you just did you know each of the parks are so quite candidly to see the parks on the Southeast Side of city and kind of want to win that race laughter and so to have again, i dont know the right rhythm not every single meeting but as Capital Planning happens and heres where parks are in the cue that would be helpful in Response Commission were happy to cook with you know we can provide a marrow and a bedandbreakfast package but the annual report comes out once a year but come back in midyear with an update in the next item youll hear an overview of the ballot measure and one of the things weve committed to doing in the ballot measure to lay out what are called metrics and well end upbringing them to the commission in the next year and we will before i applying apply those equality measures to the expenditure report that are tied to the Strategic Plan and those equality metrics call for a little bit of a deeper dive into you know areas in parks where we have been caged so youll see that in a mr. Haney and requirement we have to embrace as part of Revenue Stabilization like this morning that feedback loop came back built into that youll see a lot more of that. I know this is a discussion only item i wanted to add im sorry commissioner bonilla. Oh, i wanted to ask how do we disseminate this report and request feedback from all the park users on this report and commission the report scores are very public but the one the website and the controllers website the board of supervisors will often have a hearing about them so feedback on the scores is absent tricky bylaecause those serious methodology to actually doing the elevations you are staff and the staff r is trained to do them a lot of these feedback loops about the conditions of our parks and that includes 311 and a myriad of feedback mechanisms when things are wrong the report is discussed by the prozac representation and it is out tell you so it gets okay great thats all i wanted to hear and i want to echo commissioner mcdonnell remarks although he didnt want to say it we love you are district but show for love to district 10 and 11 it is starting but have to embrace that i share commissioner mcdonnell concerns that district 10 and 11 the third year of the report theyre showing they need more attendance more love whether through more Community Involvement or engagement be open and focus on those two districts what we can do more in those areas. Thank you, thank you were on item 8 the rec and park budget for fiscal year 20162017 and 20 2017 and 2018. Indulge me as i set up my power point. Good morning, commissioners kate happy new year to you all. Happy new year im here this morning with our initial presentation on the our Budget Development for 20162017 and 2017, 2018 ill start with the summer of mayors budget instructions talk about the interim control amendment and take us to a highlevel of the current fiscal year. The two year outcome was a little bit mixed the Mayors Office it projecting that revenues will remain strong is growth in 75 million in each the next two years, however, the mayor is anticipating that growth and expenditures will steady the growth and revenue as the wage increases all told her the Mayors Office anticipated there will be a 99 mom and dads scombrvd shortfall next year and a cumulative deficit of 200 and 40 million the year after that given those shortfall projects the mayors instructions asked the general fund support in each the next two years in the form 6 ongoing not one time cuts the mayor has issued policy instructions including the guidance that the dptsd should reflect their Strategy Plan priorities and goals the Department Support the modern responsive and engaged government that the departments minimize any Service Impacts from budget reductions we pursue the costs departmental collaborations. So the department is actually in a pretty unique position this year as we prepare our budget sums there is a Charter Amendment spends at the board of supervisors navigate thats where phil and i were at at rules committee to create a general baseline for the department the measure guarantees the department a stable level of general fund support by saying the substance about not drop blow the level the general fund support in the current year furthermore the measure increases the general fund support by 3 million a year fyi for the next 10 years and then the general fund support will grow e. R. Decrease based on the percentage that the overall general fund grows or contracts the department will then be protected if having to make reductions to our general fund support in order to help balance citywide diversities however, 24 protection comes with a cost the Department Must absorb all the revenue changes within its new baseline and all one time expenditures such capital and equipment that that previously funded by the general fund but now be covered within the base bulb in this . Approved placed on the ballot for june at june election so the Mayors Office has instructed to us develop our budget with the assumption that the Charter Amendment passed that means were exempt from making this one and a half percentage cut to the general fund the savings of about seven hundred plus thousand dollars in the next two fiscal years so this Charter Amendment puts us in a new budget world and changes the way the staff and i track our budget and accountant account for the changes in the budget we prepare to sentiment to the Mayors Office instead of reaching a cut target has been the case in the past we are balancing now to a total enhanced amount of general fund support and this is what this table lace out but before i walk you through the table i encourage you to ask questions as i move through the presentation we want to note from my standpoint what i think the benefits of the proposed Charter Amendment first and foremost this will provide the stability to the department and make us master in our destiny one of the city encounters the next session rec and park will not be required to reduce the general fund subsidy you been to balance the general fund deficit so gone the days of making a millions of or 12 millions of dollars to help the city balanced the General Fund Budget and secondly, the Charter Amendment gives me the department the opportunity to maintain our general Fund Capital Budget antes at 15 million year after year after year a historic amount and the level the will not likely achieve under the general fund so walk through first of all, we start the amount of general fund the department will be guaranteed in the next two fiscal years 67. 2 million next year and 70 plus the year after that the general fund is 64 Million Dollars if you add 3 million to that it is 67 million next year and 70 million in year two right now in the citys Budget System we have 47. 9 million in the base budget in general fund support for next year and 43 plus Million Dollars after that so if you do do basic subtraction that leaves us with over 9 million in general fund expense we can add for next year and 15. 7 million the year after that so we have to as i said cover our costs increases in a a base including the equipment the department proposing to budget at least 15 million in general fund in each the next two fiscal years and we are also proposing an equipment budget of one Million Dollars to achieve those goals we have is allocate approximately 8. 9 million of the available 9. 2 million in 20162017 and 16. Million of the money 2, 3, 420162017 and absorb those Cost Increases and budget corrections in each the next two years that leaves us what a small deficit of 42,000 in 20152016 and a slightly larger surplus in 2017, 2018 please note those figures dont include the Cost Increases in the work orders like heat and power and Workers Compensation and gasoline we will know more about what those costs look like in 46 weeks the bottom line will change so to boil all this did you observe once the department has covered its wage and benefit increases and if you wanted the capital and equipment at at proposed levels largely extended owe expended the resources by the Charter Amendment the 3 million in guaranteed growth in the general fund will not fund substantial increases inform our operating budget in the next two years, however, has we have in the past several years assess the congregate in the earned general fund revenue and the open space fund and be able to apply that growth to increase in our operating bud t budget. Got that and laughter . One more time. The open space portion one more time. We know there is as property tax increases we know there will be ungrowth in the open space fund that is not currently budgeted uhhuh. So the Controllers Office will give us a sense in the next couple of weeks what we anticipate the open space fund to look like in the next fiscal year and the year after that if there as i expect some under budgeted grow in open space revenue we can budget new operating expense against that new revenue. So we can use open space revenue to offset the operation expense. Enhancements. Okay. If we wish you know this a policy conversation new expenditure items we want to add to the budget increase the number the garden apprentices. This is uses for a variety of purposes for some for referred for maintenance but to support. Operation and maintenance for open space so basically what katie is flagging you if look at the hectic 3 bucket of revenue that is general fund, subsidy, open space growth, and earned revenue the general fund bucket is now going to have a baseline and it will grow by 3 million a year and cant fall blow the baseline 3e7b8d against that well absorb our own expenses the other two biscuits will eaten into operation as over budget into operations does that sound accurate katie. Were obviously aware that just as much we plan for increases in revenue and increases in the open space fund just as possible there decreases that can come from those two sources as well. The way the Charter Amendment is structured for the next 10 years baring official budget news for the city the department guaranteed 3 million a year every year an additional growth in the general fund baseline open space yes is the it is fluid certainly over the history of the open space fund and weve seen pretty extraordinary growth. Katie as youre being the director a decrease. Yeah. So, you know, in the great recession. 08, 09 and 10 that is because the Controllers Office is conservative they know that people will be affected like the brotherhoods. Theres a lag time too. There is decreases in value that decreases in revenue is realized sometimes later and later yeah. Commissioner harrison yeah. Thank you katie actually, i dont know did we interrupt our presentation. Im certainly not done but definitely a new way of looking at the budget it has taken me a while to get our heads around. Commissioner harrison. So with funds like our earned income at open space dollars i have the flexibility of putting that into capital or into maintenance. I do as the department we could make the decision we want to take some amount of growth in open space and budget that for capital. Budget it for operations. Can that go into an acquisition. Sureality the open space fund as you may know were charter mandated for acquisitions but it is within the department and the commission purview to make the recommendation go to the Mayors Office we spend more on an acquisition if we choose to do so. Thank you commissioner bonilla. Yes. I certainly hope that is not happened but the question is with regards to Charter Amendments i know what the reductions or instructs are youre planning around the passage of the Charter Amendment than what happens from the charter didnt pass are we put in a situation we have to ref down the expenses for the next two years where do we go from there. Commissioners to the twaushth twaushth it will not look terribly different but if whether we had the Charter Amendment not on the table a percent and a half in instruction to be cut we will probably solve for that through revenue so as katie is explaining with the 3 million in the first year were going to have to absorb our expenses not like 3 million to spend so really over budget our operating budget really will not look dissimilar this year regardless over time if i summarize we get our arms around our budget this year and generally might be the 3 strikes of the measure longterm stability and the growing you arguably were still coming out of the decision that you were challenged to support as a commission that can only 09 were some of the worst budget years this will smooth that scenario from happening a really good thing and a planned small credential growth to our general fund subsidy over time well see how that pans out in year one not allow us to make significant investment but the based on grow over a period of time 3 340r7 a lot ofs youve touched on the maintenance and capital the baseline includes what was for 20152016 a very, very healthy be year of support in of general fund capital dollars that is achieved through the citys Capital ImprovementPlan Committee i think your history has shown we have averaged somewhere in the 6 to 10 million of general fund capital through that process in 20152016 the department was supported in the general fund of 21st century Million Dollars of capital and that allows us to do is as we plan for that to have bigger buckets of funding for many of the deferred maintenance needs some are sexy and some not allow bigger buckets and to you know we do grass fields and things like that some are less sexy allows us more erosion issues and other things but all in all this is actually this is a good part of this measure we will be having frankly have a bicker pot of dollars to tackle some of the things and result in some of the issues in the parks scores you saw. Ive heard the grumbling about this Charter Amendment not park equality allocation that this funding will provide how do we address that concern and coordinate an allocation of funds. Through a series of no more than 15 series now a amble language that again calls for us to develop a set of equality metrics which we might end up being one of the first rec and park. Whats the equality metrics. A data point we have were going to be relying on some assistance from them in developing some benchmarks for example, commission you sat ants playground commissioner mcdonnell. Commissioner mcdonnell. And when you were slaement which playgrounds you know scored the highest i were considering how to allocate those dollars looking at the protecting and were looking we dont know but come back to you by way of just so you know what at Charter Amendment says well not going to develop new equality metrics that will guide us develop and bring them to you for approval the plan calls for some of this was in old language in the charter we went throat Strategy Planning conversation by update it every 4 years we have the liberty to amend it between the 5 year circles that will ended up go the board of supervisors for upside down vote theyll support it or say go back and try it again and developing an annual Operations Plan and an annual Capital Expenditure plan that comes to you so we are taking on and embracing a significant amount of planning and reporting and other all of those plans needs to incorporate some of the equality analysis in the planning. Sorry did we take you off your presentation. Absolutely not this is all very important. Lets get back on track. Moving right along so just to remind our budget in the current fiscal year is if we did for a context as we made choices around the changes for the coming two fiscal years in the current year our total budget is one and 78. 7 million a with an and 47 million of that is operations and 31 million funds capital and this budget support nine hundred and 33 budget and funded positions as phil discussions our budget is support by a 3 legged stool the open space at 26 percent and 36 percent of our budget supported through earned revenue and 38 percent is supported there general Fund Subsidies and saving you are digesting subsidy is at a 20year hive of 64 . 2 million this is a particular good year in the baseline. The. speaking chinese. fund continues to grow as you can see just on this slide between last fiscal year and the current year we added 2 about the 1 million in the open space fund the general fund subsidy 14 million more this year than last year and then prior revenue and savings down a li