By Debra Parkhurst
Recreation Director Amy Hamilton and Finance Director Victor Garofalo presented an analysis of the Recreation Revolving Account that looked back to FY 15 and projected forward to FY 18 during the Selectmen’s Meeting on January 31.
The Recreation Department Revolving Fund is estimated to go into a deficit balance by October or November of 2017, with an estimated negative balance of $62,949 by June 30, 2018.
In order to provide a coherent and comprehensive analysis to the Selectmen, Hamilton and Garafolo presented the revenues, expenditures, and balances of four Recreation Department offerings, including Recreation programs such as soccer, basketball, dance, etc.; Kids’ Club; Summer Adventures camp; and Springs Brook Park. The analysis removed one-time capital expenditures going forward as well as utilization of the Athletic Field Fund.
Several capital expenditures, adding up to $336,000 between July 2014 and the present, were recognized but not used for future projection. Projections going forward included funding for the Youth Center and Program Coordinator positions from the Revolving Account. The on-going Recreation Programs (soccer, dance, gymnastics, etc.) between FY15 and FY 17 were shown as having a consistent level of revenue, expenses, and balances, with some minor variations.
Kids’ Club is fully-enrolled, and that assumption continues to June 2018. Revenue and expenses fluctuate from quarter to quarter, but overall, the balance is consistent and growing. This model included the hiring of part-time staff as well as salary and benefit increases.
Summer Adventures used models from the present to June 2017, based on the prior two years’ average revenues and expenses. One-time expenditures are removed from the analysis, and not included in future estimates. The analysis is difficult because revenue for the camp is collected in one fiscal year, while expenses are paid in the next fiscal year. The fiscal year runs from July to July. Overall, the analysis indicates a positive trend.
Springs Brook Park used a model based on Summer 2016, and while there may be increased revenue for Summer 2017, it is too early to tell. The Recreation Department plans to increase lifeguard hours and salaries. The salary will rise from the previous $11 per hour to between $15 and $19 per hour for 2017. Last year the Department faced difficulties in attracting lifeguards to work at the park, both due to a state-wide shortage and Bedford salaries not being competitive. This contributed to cutting hours and swim programs at the park. The Department is considering offering stipends for life-guard training in order to attract guards for the Park.
Looking from FY 2015 forward, it was evident that in FY15, revenues (and expenditures) were at their highest when the Park was open to non-resident walk-in visitors on a daily basis.Once again,revenues and expenses for spring 2018 were not used because they flow into the FY19 budget.
When the Youth Center, also known as “The Corner” was first established, funding was originally to come from the Town’s general funds. However, the Town had requested that the Revolving Fund pick up half of the funding from year to year to year due to some fiscal issues in the early years. In addition, funds from the Revolving Fund went to purchase equipment and materials used at “The Corner.” “The Corner” is free for John Glenn Middle School students from dismissal to 6 pm, offering games, arts and crafts, activities, and a place “to hang out.” The Recreation Department provides staff, support, and programming.
In order to take pressure off the Recreation Revolving Fund, and to help the Department with their looming deficit issue, the Town Manager recommended to the Selectmen that they eliminate Recreation Revolving Fund support for the Youth Center and further eliminate Recreation Revolving Fund support for a portion of the of the Recreation Program Coordinator position. Funding for these would then come out of the operating budget. The Selectmen voted to support these requests, but felt that this is a short-term fix for what should become a longer-term solution. They agreed that some items, such as taking care of the building or buying furniture for the youth center or playground equipment may need to come in as capital requests, as they do from other departments, and some things may need to come in as school items. In any event, the Selectmen agreed a longer view is necessary. Caroline Fedele, Selectman liaison to the Recreation Commission, said the current model is “no longer working” and “no longer fair,” and it is time to allow the Commission to look at something besides Springs Brook Park.
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