PHED Committee 2 April 172017

MEMORANDUM

April 132017

TO Planning Housing and Economic Development (PHED) Committee

FROM Marlene MichaelSO~nior Legislative Analyst Jacob Sesker Senior Legislative Analyst ti

SUBJECT Maryland-National Capital Park and Planning Commission FY18 Operating Budget Overview and Park Enterprise Advance Land Acquisition Revolving and Property Management Funds

Those expected for this worksession

Casey Anderson Chair Montgomery County Planning Board

Parks Mike Riley Director of Parks John Nissel Deputy Director of Operations Mitra Pedoeem Deputy Director of Administration Shuchi VeramiddotChief Management Services Division Nancy Steen Budget Manager Department of Parks Jai Cole Natural Resources Manager Park Planning amp Stewardship Division

CAS John Kroll M-NCPPC Corporate Budget Manager

This memorandum provides an overview of the Maryland-National Capital Park and Planning Commission (M-NCPPC) fiscal year 2018 (FY18) budget and addresses the Park Enterprise Advance Land Acquisition Revolving and Property Management Funds On April 24 the Committee will continue its discussion of the M-NCPPC budget focusing on the Administration Special Revenues and Internal Service Funds and any follow-up issues from the first meeting Park Police will be considered separately at a joint PHEDlPublic Safety Committee meeting also on April 17 Also on April 17 the Government Operations and Fiscal Policy (GO) Committee will be considering a proposal for a pilot to provide WiFi in County parks

All page references are to the M-NCPPC Fiscal Year 2018 Proposed Annual Budget Committee Members may wish to bring a copy to the meeting The Planning Board Chairs transmittal letter is

on copy 1-9 Relevant pages from the County Executive Recommended FY18 Operating Budget are attached on copy 10-16 M-NCPPC responses to Council Staff questions on the budget are attached at copy 17 to 33

OVERVIEW OF M-NCPPC BUDGET

The budget for the Maryland-National Capital Park and Planning Commission includes tax supported funds self-supporting funds debt service and reserves The tax-supported funds-the Administration Fund and the Parks Fund-represent the lions share of the operating budgets and of this packet The Commissions FY18 budget request is $1701 million excluding the capital projects fund The appropriation required to support the operating budget is $1614 million While this number is up sharply from the FY17 adopted budget the Capital Projects Fund is also down sharply versus FYI7 meaning that the overall change in both sources and uses of funds is modest

In FYI8 total tax-supported operating budget expenditures including park debt service is $1344 million This represents an increase of $89 million (74) versus the adopted FY17 tax supported budget The Executive recommended a smaller increase in FYI8 For the Administration Fund his recommended budget is $284943 below the Commissions request For the Parks Fund his recommended budget is $4268798 below the Commissions request

Total non-tax supported operating budgets are $168 million up $460753 (28) versus FYI7

The table below summarizes the Commissions operating budget appropriation requests (by fund or fund type)

2

l1-NCPPC Budget Request FYI7 FYI8 Rcc Change

Administration Fund $29814202 $30993571 $1179369

Commissioners Office $1193633 $1176198 ($17435)

Planning Department $19555706 $19628945 $73239

Central Administrative Services $7556907 $7925370 $368463

Non-Departmental $1507956 $2263058 $755102

I

Park Fund $95617494 $103273649 $7656155

Park Operations $85776435 $90839427 $5062992

Non-Departmental $4994090 $6923012 $1928922

Debt Service $4846969 $5511210 $664241

II

Grants $550000 $550000 $0

Admin Fund Future Grants $150000 $150000 $0 Park Fund Future Grants $400000 $400000 $0

III

Self-Supporting Funds $10031147 $9297797 ($733350)

Enterprise Fund $8712147 $9297797 $585650

Property Management $1319000 $0 ($1319000)

IV

Advance Land Acguisition Debt Service Fund $77529 $155550 $78021 Debt Service $77529 $155550 $78021

V

Internal Service Funds $7062280 $11460091 $4397811 Risk Management Fund $3235155 $3359940 $124785 Capital Equipment Fund $3827125 $8100151 $4273026

VI

Special Revenue Funds $5751622 $5634625 ($116997) Park Activities $1843500 $1846425 $2925 Planning Activities $3908122 $3788200 ($119922)

Total Operatin Budet Request $148904274 $161365283 $12461009

VII

SPENDING AFFORDABILITY GUIDELINES

The Countys Charter and Code establish a Spending Affordability process that is tied to the approval of the Aggregate Operating Budget The Aggregate Operating Budget (AOB) excludes enterprise funds the Washington Suburban Sanitary Commission tuition and tuition-related charges and specific grants For the purposes of the AOB resolution and the related Spending Affordability process debt service and retiree health pre-funding are accounted for separately from the agency budgets This can create confusion when comparing the Commissions budget the Executives recommended budget and the Councils Spending Affordability Guidelines and annual AOB resolution of approval

3

M-NCPPC Budget Request vs Count~ Executive Recommended Budget

M-NCPPC FYI7 Adopted FYI8 Request FYI8 CE Rec

A Administration Fund $30464202 $31643571

B Park Fund $96367494 $104023649

C=A+B Total $126831696 $135667220

Tax Supported

FY17 Ado~ted FY 18 Pr020sed FY18 CERec

A Administration Fund $30464202 $31643571

D Less Grants ($150000) ($150000)

E Less Transfer to DRSRF ($50000Ql j$5000001

F=A-(D+E) Subtotal Admin Fund $29814202 $30993571 $30708628

FY17 Adegtgted FY18 Proposed FY18 CE Rec

B Parks Fund $96367494 $104023649

G Less Grants ($400000) ($400000)

H Less Transfer to the CIP ($350000) ($350000)

I=B-(G+H) Subtotal Park Fund $95617494 $103273649 $99004851

FY17 Adopted FY 18 Proposed FY18 CE Rec

J=F+I Total Tax Supported $125431696 $134267220 $129713479

K Less Park Debt Service ($4846969) ($5511210) ($5511210)

L=J-K Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

Aggregate Operating Budget FY17 Adopted FY 18 Proposed FY18 CERec

L Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

M Less OPEB Pre-funding ($18276011 j$2050400) ($2050400)

N=L-M Total for SAGAOB $118757126 $126705610 $122151869

For the upcoming budget year the Council approved an FY18 SAG for M-NCPPC of $1208 million up from $1188 million (excluding debt service and retiree health care prefunding) in the approved FY17 Aggregate Operating Budget The Commission request is $1268 million for SAGAPB purposes or $59 million more than the SAG target amount The Executives recommended aggregate operating budget for the agency is $1222 million (ie the recommended tax-supported budget of $1242 million less $2 million for OPEB) The Spending Affordability Guidelines that the Council adopts in February does not place a limit on the amount that the Council can approve in May but rather creates procedural requirements for agencies that submit budgets that exceed the approved SAG amount

4

COMPENSATION

Compensation for all agencies will be considered by the Government Operations and Fiscal Policy (GO) Committee on April 20 so this issue is touched upon only briefly in this memorandum The FY18 budget as submitted by M-NCPPC includes a compensation marker with a compensation increase of $1975067 the specific amount and form will be determined after union negotiations are completed Other major personnel costs also include a small decrease (-$81476) in OPEB Pay-as-you-Go and preshyfunding a slight increase in health insurance costs (+$55763) an increase in pension costs (+$2120050) and a reclassification marker (+$820301) Total compensation changes equal $4889435 For additional details see copy 3

MAJOR CHANGES IN THE FY18 BUDGET

Significant FY18 changes to the M-NCPPC budget are described in the Chairs cover letter (copy 1 to 9) Changes in compensation are summarized above Non-compensation cost changes include an increase to debt service (+$664241) an increase to Parks-National Pollution Discharge Elimination System (+$549349) assorted operating budget impacts (OBI) of capital projects (+$109541) investment in critical needs (+$1612879) and operating budget major known commitments (+$1010079) Total non-compensation changes as compared to the FY17 budget are $39 million or 31

M-NCPPC PARK FUND

The Montgomery County Parks System includes 418 parks with over 36000 acres ofland M-NCPPC has requested FY18 tax-supported funding of $97762439 excluding grants debt service and reserves This represents a $7 million or 77 percent increase from the FY17 approved budget The Executive recommends $93493641 a reduction of $4268798 from the M-NCPPC request

PARK FUND BUDGET HIGHLIGHTS (Millions) FY17 Approved Budget $907

$978FY18 Request FY18 Executive Recommendation $935

$70 $43

Difference between Approved Budget and R~uest Difference between M-NCPPC Request and Executive Recommendation

CHANGES FROM FY17 TO FY18

Page 179 of the budget summarizes the increases proposed for FY18 Since this page includes debt service (unlike the previous chart) it shows a larger difference between the FY18 proposed budget and the FY17 approved budget because debt service will increase Major changes in the budget include the following

5

Compensation Adjustments (Sal~ and Benefit~ $3492425 Known Operating Commitments $1545438 New Initiatives $1404616 NPDES (Water Quality Protection Fund) $586223 Debt Service $664241 Other Post-Employment Benefits (PA YGO and Pre-funding)

($36788)

TOTAL INCREASES $7656155

Compensation and Benefits will be addressed by the GO Committee and are not discussed here The remaining significant changes are summarized below

Operating Budget Impact of New Parks

Operating Budget Impact (OBI) is the costs associated with operating maintaining and policing new and expanded parks In FYI8 the Department of Parks is requesting $109541 in additional funding for OBI The personnel increases include 19 WY seasonal staff and no full-time WY s

NPDES Mandate

For FYI8 the Department of Parks is requesting an increase of $586223 to its funding for National Pollution Discharge Elimination System (NPDES) bringing the total funding to $3403636 The funding includes $379466 in personnel that is for compensation increases for existing positions under NPDES (283 workyears) and the addition of three full-time career positions (30 WY) to address deficiencies that remain in the Post Construction Storm water Management measure which deals primarily with the retrofit repair and maintenance of stormwater facilities on M-NCPPC parkland For the second year the Department requests the conversion of a term contract position into one full-time career position this year for wildlife management Also included are supplies and materials of $46757 and one-time capital equipment funding of $160000 for two vehicles (for new positions) and a minishyexcavator NPDES costs are usually funded by the Water Quality Protection Fund The Executives budget presents conflicting information as to whether this requested increase in the Water Quality Protection Fund is supported On pages 12-4 (copy 34) and 73-17 (copy 35) of the Executiveshyrecommended budget it is included in the Intergovernmental Revenue for the Park Fund However on page 63-3 (copy 36) the increase to M-NCPPC is shown as $160000 The Committee may want to discuss this with Office ofManagement and Budget (OMB) staff

Known Operating Commitments

The Known Operating Commitments include cost increases such as contractual obligations for known increases based on the consumer price index ($235150) increases associated with legislated minimum wage increases ($32794) increases in telecommunications costs and utilities ($77495) and inflationary increases for supplies and materials ($159204) The Department is reducing costs associated with the one-time FY17 funding for the purchase of body-worn cameras for Park Police ($132000) The debt service on the Internal Service Capital Equipment Fund increases by $617500 based on proposed spending for Information Technology upgrades and vehicle and equipment purchases

6

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

on copy 1-9 Relevant pages from the County Executive Recommended FY18 Operating Budget are attached on copy 10-16 M-NCPPC responses to Council Staff questions on the budget are attached at copy 17 to 33

OVERVIEW OF M-NCPPC BUDGET

The budget for the Maryland-National Capital Park and Planning Commission includes tax supported funds self-supporting funds debt service and reserves The tax-supported funds-the Administration Fund and the Parks Fund-represent the lions share of the operating budgets and of this packet The Commissions FY18 budget request is $1701 million excluding the capital projects fund The appropriation required to support the operating budget is $1614 million While this number is up sharply from the FY17 adopted budget the Capital Projects Fund is also down sharply versus FYI7 meaning that the overall change in both sources and uses of funds is modest

In FYI8 total tax-supported operating budget expenditures including park debt service is $1344 million This represents an increase of $89 million (74) versus the adopted FY17 tax supported budget The Executive recommended a smaller increase in FYI8 For the Administration Fund his recommended budget is $284943 below the Commissions request For the Parks Fund his recommended budget is $4268798 below the Commissions request

Total non-tax supported operating budgets are $168 million up $460753 (28) versus FYI7

The table below summarizes the Commissions operating budget appropriation requests (by fund or fund type)

2

l1-NCPPC Budget Request FYI7 FYI8 Rcc Change

Administration Fund $29814202 $30993571 $1179369

Commissioners Office $1193633 $1176198 ($17435)

Planning Department $19555706 $19628945 $73239

Central Administrative Services $7556907 $7925370 $368463

Non-Departmental $1507956 $2263058 $755102

I

Park Fund $95617494 $103273649 $7656155

Park Operations $85776435 $90839427 $5062992

Non-Departmental $4994090 $6923012 $1928922

Debt Service $4846969 $5511210 $664241

II

Grants $550000 $550000 $0

Admin Fund Future Grants $150000 $150000 $0 Park Fund Future Grants $400000 $400000 $0

III

Self-Supporting Funds $10031147 $9297797 ($733350)

Enterprise Fund $8712147 $9297797 $585650

Property Management $1319000 $0 ($1319000)

IV

Advance Land Acguisition Debt Service Fund $77529 $155550 $78021 Debt Service $77529 $155550 $78021

V

Internal Service Funds $7062280 $11460091 $4397811 Risk Management Fund $3235155 $3359940 $124785 Capital Equipment Fund $3827125 $8100151 $4273026

VI

Special Revenue Funds $5751622 $5634625 ($116997) Park Activities $1843500 $1846425 $2925 Planning Activities $3908122 $3788200 ($119922)

Total Operatin Budet Request $148904274 $161365283 $12461009

VII

SPENDING AFFORDABILITY GUIDELINES

The Countys Charter and Code establish a Spending Affordability process that is tied to the approval of the Aggregate Operating Budget The Aggregate Operating Budget (AOB) excludes enterprise funds the Washington Suburban Sanitary Commission tuition and tuition-related charges and specific grants For the purposes of the AOB resolution and the related Spending Affordability process debt service and retiree health pre-funding are accounted for separately from the agency budgets This can create confusion when comparing the Commissions budget the Executives recommended budget and the Councils Spending Affordability Guidelines and annual AOB resolution of approval

3

M-NCPPC Budget Request vs Count~ Executive Recommended Budget

M-NCPPC FYI7 Adopted FYI8 Request FYI8 CE Rec

A Administration Fund $30464202 $31643571

B Park Fund $96367494 $104023649

C=A+B Total $126831696 $135667220

Tax Supported

FY17 Ado~ted FY 18 Pr020sed FY18 CERec

A Administration Fund $30464202 $31643571

D Less Grants ($150000) ($150000)

E Less Transfer to DRSRF ($50000Ql j$5000001

F=A-(D+E) Subtotal Admin Fund $29814202 $30993571 $30708628

FY17 Adegtgted FY18 Proposed FY18 CE Rec

B Parks Fund $96367494 $104023649

G Less Grants ($400000) ($400000)

H Less Transfer to the CIP ($350000) ($350000)

I=B-(G+H) Subtotal Park Fund $95617494 $103273649 $99004851

FY17 Adopted FY 18 Proposed FY18 CE Rec

J=F+I Total Tax Supported $125431696 $134267220 $129713479

K Less Park Debt Service ($4846969) ($5511210) ($5511210)

L=J-K Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

Aggregate Operating Budget FY17 Adopted FY 18 Proposed FY18 CERec

L Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

M Less OPEB Pre-funding ($18276011 j$2050400) ($2050400)

N=L-M Total for SAGAOB $118757126 $126705610 $122151869

For the upcoming budget year the Council approved an FY18 SAG for M-NCPPC of $1208 million up from $1188 million (excluding debt service and retiree health care prefunding) in the approved FY17 Aggregate Operating Budget The Commission request is $1268 million for SAGAPB purposes or $59 million more than the SAG target amount The Executives recommended aggregate operating budget for the agency is $1222 million (ie the recommended tax-supported budget of $1242 million less $2 million for OPEB) The Spending Affordability Guidelines that the Council adopts in February does not place a limit on the amount that the Council can approve in May but rather creates procedural requirements for agencies that submit budgets that exceed the approved SAG amount

4

COMPENSATION

Compensation for all agencies will be considered by the Government Operations and Fiscal Policy (GO) Committee on April 20 so this issue is touched upon only briefly in this memorandum The FY18 budget as submitted by M-NCPPC includes a compensation marker with a compensation increase of $1975067 the specific amount and form will be determined after union negotiations are completed Other major personnel costs also include a small decrease (-$81476) in OPEB Pay-as-you-Go and preshyfunding a slight increase in health insurance costs (+$55763) an increase in pension costs (+$2120050) and a reclassification marker (+$820301) Total compensation changes equal $4889435 For additional details see copy 3

MAJOR CHANGES IN THE FY18 BUDGET

Significant FY18 changes to the M-NCPPC budget are described in the Chairs cover letter (copy 1 to 9) Changes in compensation are summarized above Non-compensation cost changes include an increase to debt service (+$664241) an increase to Parks-National Pollution Discharge Elimination System (+$549349) assorted operating budget impacts (OBI) of capital projects (+$109541) investment in critical needs (+$1612879) and operating budget major known commitments (+$1010079) Total non-compensation changes as compared to the FY17 budget are $39 million or 31

M-NCPPC PARK FUND

The Montgomery County Parks System includes 418 parks with over 36000 acres ofland M-NCPPC has requested FY18 tax-supported funding of $97762439 excluding grants debt service and reserves This represents a $7 million or 77 percent increase from the FY17 approved budget The Executive recommends $93493641 a reduction of $4268798 from the M-NCPPC request

PARK FUND BUDGET HIGHLIGHTS (Millions) FY17 Approved Budget $907

$978FY18 Request FY18 Executive Recommendation $935

$70 $43

Difference between Approved Budget and R~uest Difference between M-NCPPC Request and Executive Recommendation

CHANGES FROM FY17 TO FY18

Page 179 of the budget summarizes the increases proposed for FY18 Since this page includes debt service (unlike the previous chart) it shows a larger difference between the FY18 proposed budget and the FY17 approved budget because debt service will increase Major changes in the budget include the following

5

Compensation Adjustments (Sal~ and Benefit~ $3492425 Known Operating Commitments $1545438 New Initiatives $1404616 NPDES (Water Quality Protection Fund) $586223 Debt Service $664241 Other Post-Employment Benefits (PA YGO and Pre-funding)

($36788)

TOTAL INCREASES $7656155

Compensation and Benefits will be addressed by the GO Committee and are not discussed here The remaining significant changes are summarized below

Operating Budget Impact of New Parks

Operating Budget Impact (OBI) is the costs associated with operating maintaining and policing new and expanded parks In FYI8 the Department of Parks is requesting $109541 in additional funding for OBI The personnel increases include 19 WY seasonal staff and no full-time WY s

NPDES Mandate

For FYI8 the Department of Parks is requesting an increase of $586223 to its funding for National Pollution Discharge Elimination System (NPDES) bringing the total funding to $3403636 The funding includes $379466 in personnel that is for compensation increases for existing positions under NPDES (283 workyears) and the addition of three full-time career positions (30 WY) to address deficiencies that remain in the Post Construction Storm water Management measure which deals primarily with the retrofit repair and maintenance of stormwater facilities on M-NCPPC parkland For the second year the Department requests the conversion of a term contract position into one full-time career position this year for wildlife management Also included are supplies and materials of $46757 and one-time capital equipment funding of $160000 for two vehicles (for new positions) and a minishyexcavator NPDES costs are usually funded by the Water Quality Protection Fund The Executives budget presents conflicting information as to whether this requested increase in the Water Quality Protection Fund is supported On pages 12-4 (copy 34) and 73-17 (copy 35) of the Executiveshyrecommended budget it is included in the Intergovernmental Revenue for the Park Fund However on page 63-3 (copy 36) the increase to M-NCPPC is shown as $160000 The Committee may want to discuss this with Office ofManagement and Budget (OMB) staff

Known Operating Commitments

The Known Operating Commitments include cost increases such as contractual obligations for known increases based on the consumer price index ($235150) increases associated with legislated minimum wage increases ($32794) increases in telecommunications costs and utilities ($77495) and inflationary increases for supplies and materials ($159204) The Department is reducing costs associated with the one-time FY17 funding for the purchase of body-worn cameras for Park Police ($132000) The debt service on the Internal Service Capital Equipment Fund increases by $617500 based on proposed spending for Information Technology upgrades and vehicle and equipment purchases

6

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

l1-NCPPC Budget Request FYI7 FYI8 Rcc Change

Administration Fund $29814202 $30993571 $1179369

Commissioners Office $1193633 $1176198 ($17435)

Planning Department $19555706 $19628945 $73239

Central Administrative Services $7556907 $7925370 $368463

Non-Departmental $1507956 $2263058 $755102

I

Park Fund $95617494 $103273649 $7656155

Park Operations $85776435 $90839427 $5062992

Non-Departmental $4994090 $6923012 $1928922

Debt Service $4846969 $5511210 $664241

II

Grants $550000 $550000 $0

Admin Fund Future Grants $150000 $150000 $0 Park Fund Future Grants $400000 $400000 $0

III

Self-Supporting Funds $10031147 $9297797 ($733350)

Enterprise Fund $8712147 $9297797 $585650

Property Management $1319000 $0 ($1319000)

IV

Advance Land Acguisition Debt Service Fund $77529 $155550 $78021 Debt Service $77529 $155550 $78021

V

Internal Service Funds $7062280 $11460091 $4397811 Risk Management Fund $3235155 $3359940 $124785 Capital Equipment Fund $3827125 $8100151 $4273026

VI

Special Revenue Funds $5751622 $5634625 ($116997) Park Activities $1843500 $1846425 $2925 Planning Activities $3908122 $3788200 ($119922)

Total Operatin Budet Request $148904274 $161365283 $12461009

VII

SPENDING AFFORDABILITY GUIDELINES

The Countys Charter and Code establish a Spending Affordability process that is tied to the approval of the Aggregate Operating Budget The Aggregate Operating Budget (AOB) excludes enterprise funds the Washington Suburban Sanitary Commission tuition and tuition-related charges and specific grants For the purposes of the AOB resolution and the related Spending Affordability process debt service and retiree health pre-funding are accounted for separately from the agency budgets This can create confusion when comparing the Commissions budget the Executives recommended budget and the Councils Spending Affordability Guidelines and annual AOB resolution of approval

3

M-NCPPC Budget Request vs Count~ Executive Recommended Budget

M-NCPPC FYI7 Adopted FYI8 Request FYI8 CE Rec

A Administration Fund $30464202 $31643571

B Park Fund $96367494 $104023649

C=A+B Total $126831696 $135667220

Tax Supported

FY17 Ado~ted FY 18 Pr020sed FY18 CERec

A Administration Fund $30464202 $31643571

D Less Grants ($150000) ($150000)

E Less Transfer to DRSRF ($50000Ql j$5000001

F=A-(D+E) Subtotal Admin Fund $29814202 $30993571 $30708628

FY17 Adegtgted FY18 Proposed FY18 CE Rec

B Parks Fund $96367494 $104023649

G Less Grants ($400000) ($400000)

H Less Transfer to the CIP ($350000) ($350000)

I=B-(G+H) Subtotal Park Fund $95617494 $103273649 $99004851

FY17 Adopted FY 18 Proposed FY18 CE Rec

J=F+I Total Tax Supported $125431696 $134267220 $129713479

K Less Park Debt Service ($4846969) ($5511210) ($5511210)

L=J-K Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

Aggregate Operating Budget FY17 Adopted FY 18 Proposed FY18 CERec

L Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

M Less OPEB Pre-funding ($18276011 j$2050400) ($2050400)

N=L-M Total for SAGAOB $118757126 $126705610 $122151869

For the upcoming budget year the Council approved an FY18 SAG for M-NCPPC of $1208 million up from $1188 million (excluding debt service and retiree health care prefunding) in the approved FY17 Aggregate Operating Budget The Commission request is $1268 million for SAGAPB purposes or $59 million more than the SAG target amount The Executives recommended aggregate operating budget for the agency is $1222 million (ie the recommended tax-supported budget of $1242 million less $2 million for OPEB) The Spending Affordability Guidelines that the Council adopts in February does not place a limit on the amount that the Council can approve in May but rather creates procedural requirements for agencies that submit budgets that exceed the approved SAG amount

4

COMPENSATION

Compensation for all agencies will be considered by the Government Operations and Fiscal Policy (GO) Committee on April 20 so this issue is touched upon only briefly in this memorandum The FY18 budget as submitted by M-NCPPC includes a compensation marker with a compensation increase of $1975067 the specific amount and form will be determined after union negotiations are completed Other major personnel costs also include a small decrease (-$81476) in OPEB Pay-as-you-Go and preshyfunding a slight increase in health insurance costs (+$55763) an increase in pension costs (+$2120050) and a reclassification marker (+$820301) Total compensation changes equal $4889435 For additional details see copy 3

MAJOR CHANGES IN THE FY18 BUDGET

Significant FY18 changes to the M-NCPPC budget are described in the Chairs cover letter (copy 1 to 9) Changes in compensation are summarized above Non-compensation cost changes include an increase to debt service (+$664241) an increase to Parks-National Pollution Discharge Elimination System (+$549349) assorted operating budget impacts (OBI) of capital projects (+$109541) investment in critical needs (+$1612879) and operating budget major known commitments (+$1010079) Total non-compensation changes as compared to the FY17 budget are $39 million or 31

M-NCPPC PARK FUND

The Montgomery County Parks System includes 418 parks with over 36000 acres ofland M-NCPPC has requested FY18 tax-supported funding of $97762439 excluding grants debt service and reserves This represents a $7 million or 77 percent increase from the FY17 approved budget The Executive recommends $93493641 a reduction of $4268798 from the M-NCPPC request

PARK FUND BUDGET HIGHLIGHTS (Millions) FY17 Approved Budget $907

$978FY18 Request FY18 Executive Recommendation $935

$70 $43

Difference between Approved Budget and R~uest Difference between M-NCPPC Request and Executive Recommendation

CHANGES FROM FY17 TO FY18

Page 179 of the budget summarizes the increases proposed for FY18 Since this page includes debt service (unlike the previous chart) it shows a larger difference between the FY18 proposed budget and the FY17 approved budget because debt service will increase Major changes in the budget include the following

5

Compensation Adjustments (Sal~ and Benefit~ $3492425 Known Operating Commitments $1545438 New Initiatives $1404616 NPDES (Water Quality Protection Fund) $586223 Debt Service $664241 Other Post-Employment Benefits (PA YGO and Pre-funding)

($36788)

TOTAL INCREASES $7656155

Compensation and Benefits will be addressed by the GO Committee and are not discussed here The remaining significant changes are summarized below

Operating Budget Impact of New Parks

Operating Budget Impact (OBI) is the costs associated with operating maintaining and policing new and expanded parks In FYI8 the Department of Parks is requesting $109541 in additional funding for OBI The personnel increases include 19 WY seasonal staff and no full-time WY s

NPDES Mandate

For FYI8 the Department of Parks is requesting an increase of $586223 to its funding for National Pollution Discharge Elimination System (NPDES) bringing the total funding to $3403636 The funding includes $379466 in personnel that is for compensation increases for existing positions under NPDES (283 workyears) and the addition of three full-time career positions (30 WY) to address deficiencies that remain in the Post Construction Storm water Management measure which deals primarily with the retrofit repair and maintenance of stormwater facilities on M-NCPPC parkland For the second year the Department requests the conversion of a term contract position into one full-time career position this year for wildlife management Also included are supplies and materials of $46757 and one-time capital equipment funding of $160000 for two vehicles (for new positions) and a minishyexcavator NPDES costs are usually funded by the Water Quality Protection Fund The Executives budget presents conflicting information as to whether this requested increase in the Water Quality Protection Fund is supported On pages 12-4 (copy 34) and 73-17 (copy 35) of the Executiveshyrecommended budget it is included in the Intergovernmental Revenue for the Park Fund However on page 63-3 (copy 36) the increase to M-NCPPC is shown as $160000 The Committee may want to discuss this with Office ofManagement and Budget (OMB) staff

Known Operating Commitments

The Known Operating Commitments include cost increases such as contractual obligations for known increases based on the consumer price index ($235150) increases associated with legislated minimum wage increases ($32794) increases in telecommunications costs and utilities ($77495) and inflationary increases for supplies and materials ($159204) The Department is reducing costs associated with the one-time FY17 funding for the purchase of body-worn cameras for Park Police ($132000) The debt service on the Internal Service Capital Equipment Fund increases by $617500 based on proposed spending for Information Technology upgrades and vehicle and equipment purchases

6

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

M-NCPPC Budget Request vs Count~ Executive Recommended Budget

M-NCPPC FYI7 Adopted FYI8 Request FYI8 CE Rec

A Administration Fund $30464202 $31643571

B Park Fund $96367494 $104023649

C=A+B Total $126831696 $135667220

Tax Supported

FY17 Ado~ted FY 18 Pr020sed FY18 CERec

A Administration Fund $30464202 $31643571

D Less Grants ($150000) ($150000)

E Less Transfer to DRSRF ($50000Ql j$5000001

F=A-(D+E) Subtotal Admin Fund $29814202 $30993571 $30708628

FY17 Adegtgted FY18 Proposed FY18 CE Rec

B Parks Fund $96367494 $104023649

G Less Grants ($400000) ($400000)

H Less Transfer to the CIP ($350000) ($350000)

I=B-(G+H) Subtotal Park Fund $95617494 $103273649 $99004851

FY17 Adopted FY 18 Proposed FY18 CE Rec

J=F+I Total Tax Supported $125431696 $134267220 $129713479

K Less Park Debt Service ($4846969) ($5511210) ($5511210)

L=J-K Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

Aggregate Operating Budget FY17 Adopted FY 18 Proposed FY18 CERec

L Tax Supported (exc1 Debt Service) $120584727 $128756010 $124202269

M Less OPEB Pre-funding ($18276011 j$2050400) ($2050400)

N=L-M Total for SAGAOB $118757126 $126705610 $122151869

For the upcoming budget year the Council approved an FY18 SAG for M-NCPPC of $1208 million up from $1188 million (excluding debt service and retiree health care prefunding) in the approved FY17 Aggregate Operating Budget The Commission request is $1268 million for SAGAPB purposes or $59 million more than the SAG target amount The Executives recommended aggregate operating budget for the agency is $1222 million (ie the recommended tax-supported budget of $1242 million less $2 million for OPEB) The Spending Affordability Guidelines that the Council adopts in February does not place a limit on the amount that the Council can approve in May but rather creates procedural requirements for agencies that submit budgets that exceed the approved SAG amount

4

COMPENSATION

Compensation for all agencies will be considered by the Government Operations and Fiscal Policy (GO) Committee on April 20 so this issue is touched upon only briefly in this memorandum The FY18 budget as submitted by M-NCPPC includes a compensation marker with a compensation increase of $1975067 the specific amount and form will be determined after union negotiations are completed Other major personnel costs also include a small decrease (-$81476) in OPEB Pay-as-you-Go and preshyfunding a slight increase in health insurance costs (+$55763) an increase in pension costs (+$2120050) and a reclassification marker (+$820301) Total compensation changes equal $4889435 For additional details see copy 3

MAJOR CHANGES IN THE FY18 BUDGET

Significant FY18 changes to the M-NCPPC budget are described in the Chairs cover letter (copy 1 to 9) Changes in compensation are summarized above Non-compensation cost changes include an increase to debt service (+$664241) an increase to Parks-National Pollution Discharge Elimination System (+$549349) assorted operating budget impacts (OBI) of capital projects (+$109541) investment in critical needs (+$1612879) and operating budget major known commitments (+$1010079) Total non-compensation changes as compared to the FY17 budget are $39 million or 31

M-NCPPC PARK FUND

The Montgomery County Parks System includes 418 parks with over 36000 acres ofland M-NCPPC has requested FY18 tax-supported funding of $97762439 excluding grants debt service and reserves This represents a $7 million or 77 percent increase from the FY17 approved budget The Executive recommends $93493641 a reduction of $4268798 from the M-NCPPC request

PARK FUND BUDGET HIGHLIGHTS (Millions) FY17 Approved Budget $907

$978FY18 Request FY18 Executive Recommendation $935

$70 $43

Difference between Approved Budget and R~uest Difference between M-NCPPC Request and Executive Recommendation

CHANGES FROM FY17 TO FY18

Page 179 of the budget summarizes the increases proposed for FY18 Since this page includes debt service (unlike the previous chart) it shows a larger difference between the FY18 proposed budget and the FY17 approved budget because debt service will increase Major changes in the budget include the following

5

Compensation Adjustments (Sal~ and Benefit~ $3492425 Known Operating Commitments $1545438 New Initiatives $1404616 NPDES (Water Quality Protection Fund) $586223 Debt Service $664241 Other Post-Employment Benefits (PA YGO and Pre-funding)

($36788)

TOTAL INCREASES $7656155

Compensation and Benefits will be addressed by the GO Committee and are not discussed here The remaining significant changes are summarized below

Operating Budget Impact of New Parks

Operating Budget Impact (OBI) is the costs associated with operating maintaining and policing new and expanded parks In FYI8 the Department of Parks is requesting $109541 in additional funding for OBI The personnel increases include 19 WY seasonal staff and no full-time WY s

NPDES Mandate

For FYI8 the Department of Parks is requesting an increase of $586223 to its funding for National Pollution Discharge Elimination System (NPDES) bringing the total funding to $3403636 The funding includes $379466 in personnel that is for compensation increases for existing positions under NPDES (283 workyears) and the addition of three full-time career positions (30 WY) to address deficiencies that remain in the Post Construction Storm water Management measure which deals primarily with the retrofit repair and maintenance of stormwater facilities on M-NCPPC parkland For the second year the Department requests the conversion of a term contract position into one full-time career position this year for wildlife management Also included are supplies and materials of $46757 and one-time capital equipment funding of $160000 for two vehicles (for new positions) and a minishyexcavator NPDES costs are usually funded by the Water Quality Protection Fund The Executives budget presents conflicting information as to whether this requested increase in the Water Quality Protection Fund is supported On pages 12-4 (copy 34) and 73-17 (copy 35) of the Executiveshyrecommended budget it is included in the Intergovernmental Revenue for the Park Fund However on page 63-3 (copy 36) the increase to M-NCPPC is shown as $160000 The Committee may want to discuss this with Office ofManagement and Budget (OMB) staff

Known Operating Commitments

The Known Operating Commitments include cost increases such as contractual obligations for known increases based on the consumer price index ($235150) increases associated with legislated minimum wage increases ($32794) increases in telecommunications costs and utilities ($77495) and inflationary increases for supplies and materials ($159204) The Department is reducing costs associated with the one-time FY17 funding for the purchase of body-worn cameras for Park Police ($132000) The debt service on the Internal Service Capital Equipment Fund increases by $617500 based on proposed spending for Information Technology upgrades and vehicle and equipment purchases

6

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

COMPENSATION

Compensation for all agencies will be considered by the Government Operations and Fiscal Policy (GO) Committee on April 20 so this issue is touched upon only briefly in this memorandum The FY18 budget as submitted by M-NCPPC includes a compensation marker with a compensation increase of $1975067 the specific amount and form will be determined after union negotiations are completed Other major personnel costs also include a small decrease (-$81476) in OPEB Pay-as-you-Go and preshyfunding a slight increase in health insurance costs (+$55763) an increase in pension costs (+$2120050) and a reclassification marker (+$820301) Total compensation changes equal $4889435 For additional details see copy 3

MAJOR CHANGES IN THE FY18 BUDGET

Significant FY18 changes to the M-NCPPC budget are described in the Chairs cover letter (copy 1 to 9) Changes in compensation are summarized above Non-compensation cost changes include an increase to debt service (+$664241) an increase to Parks-National Pollution Discharge Elimination System (+$549349) assorted operating budget impacts (OBI) of capital projects (+$109541) investment in critical needs (+$1612879) and operating budget major known commitments (+$1010079) Total non-compensation changes as compared to the FY17 budget are $39 million or 31

M-NCPPC PARK FUND

The Montgomery County Parks System includes 418 parks with over 36000 acres ofland M-NCPPC has requested FY18 tax-supported funding of $97762439 excluding grants debt service and reserves This represents a $7 million or 77 percent increase from the FY17 approved budget The Executive recommends $93493641 a reduction of $4268798 from the M-NCPPC request

PARK FUND BUDGET HIGHLIGHTS (Millions) FY17 Approved Budget $907

$978FY18 Request FY18 Executive Recommendation $935

$70 $43

Difference between Approved Budget and R~uest Difference between M-NCPPC Request and Executive Recommendation

CHANGES FROM FY17 TO FY18

Page 179 of the budget summarizes the increases proposed for FY18 Since this page includes debt service (unlike the previous chart) it shows a larger difference between the FY18 proposed budget and the FY17 approved budget because debt service will increase Major changes in the budget include the following

5

Compensation Adjustments (Sal~ and Benefit~ $3492425 Known Operating Commitments $1545438 New Initiatives $1404616 NPDES (Water Quality Protection Fund) $586223 Debt Service $664241 Other Post-Employment Benefits (PA YGO and Pre-funding)

($36788)

TOTAL INCREASES $7656155

Compensation and Benefits will be addressed by the GO Committee and are not discussed here The remaining significant changes are summarized below

Operating Budget Impact of New Parks

Operating Budget Impact (OBI) is the costs associated with operating maintaining and policing new and expanded parks In FYI8 the Department of Parks is requesting $109541 in additional funding for OBI The personnel increases include 19 WY seasonal staff and no full-time WY s

NPDES Mandate

For FYI8 the Department of Parks is requesting an increase of $586223 to its funding for National Pollution Discharge Elimination System (NPDES) bringing the total funding to $3403636 The funding includes $379466 in personnel that is for compensation increases for existing positions under NPDES (283 workyears) and the addition of three full-time career positions (30 WY) to address deficiencies that remain in the Post Construction Storm water Management measure which deals primarily with the retrofit repair and maintenance of stormwater facilities on M-NCPPC parkland For the second year the Department requests the conversion of a term contract position into one full-time career position this year for wildlife management Also included are supplies and materials of $46757 and one-time capital equipment funding of $160000 for two vehicles (for new positions) and a minishyexcavator NPDES costs are usually funded by the Water Quality Protection Fund The Executives budget presents conflicting information as to whether this requested increase in the Water Quality Protection Fund is supported On pages 12-4 (copy 34) and 73-17 (copy 35) of the Executiveshyrecommended budget it is included in the Intergovernmental Revenue for the Park Fund However on page 63-3 (copy 36) the increase to M-NCPPC is shown as $160000 The Committee may want to discuss this with Office ofManagement and Budget (OMB) staff

Known Operating Commitments

The Known Operating Commitments include cost increases such as contractual obligations for known increases based on the consumer price index ($235150) increases associated with legislated minimum wage increases ($32794) increases in telecommunications costs and utilities ($77495) and inflationary increases for supplies and materials ($159204) The Department is reducing costs associated with the one-time FY17 funding for the purchase of body-worn cameras for Park Police ($132000) The debt service on the Internal Service Capital Equipment Fund increases by $617500 based on proposed spending for Information Technology upgrades and vehicle and equipment purchases

6

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

Compensation Adjustments (Sal~ and Benefit~ $3492425 Known Operating Commitments $1545438 New Initiatives $1404616 NPDES (Water Quality Protection Fund) $586223 Debt Service $664241 Other Post-Employment Benefits (PA YGO and Pre-funding)

($36788)

TOTAL INCREASES $7656155

Compensation and Benefits will be addressed by the GO Committee and are not discussed here The remaining significant changes are summarized below

Operating Budget Impact of New Parks

Operating Budget Impact (OBI) is the costs associated with operating maintaining and policing new and expanded parks In FYI8 the Department of Parks is requesting $109541 in additional funding for OBI The personnel increases include 19 WY seasonal staff and no full-time WY s

NPDES Mandate

For FYI8 the Department of Parks is requesting an increase of $586223 to its funding for National Pollution Discharge Elimination System (NPDES) bringing the total funding to $3403636 The funding includes $379466 in personnel that is for compensation increases for existing positions under NPDES (283 workyears) and the addition of three full-time career positions (30 WY) to address deficiencies that remain in the Post Construction Storm water Management measure which deals primarily with the retrofit repair and maintenance of stormwater facilities on M-NCPPC parkland For the second year the Department requests the conversion of a term contract position into one full-time career position this year for wildlife management Also included are supplies and materials of $46757 and one-time capital equipment funding of $160000 for two vehicles (for new positions) and a minishyexcavator NPDES costs are usually funded by the Water Quality Protection Fund The Executives budget presents conflicting information as to whether this requested increase in the Water Quality Protection Fund is supported On pages 12-4 (copy 34) and 73-17 (copy 35) of the Executiveshyrecommended budget it is included in the Intergovernmental Revenue for the Park Fund However on page 63-3 (copy 36) the increase to M-NCPPC is shown as $160000 The Committee may want to discuss this with Office ofManagement and Budget (OMB) staff

Known Operating Commitments

The Known Operating Commitments include cost increases such as contractual obligations for known increases based on the consumer price index ($235150) increases associated with legislated minimum wage increases ($32794) increases in telecommunications costs and utilities ($77495) and inflationary increases for supplies and materials ($159204) The Department is reducing costs associated with the one-time FY17 funding for the purchase of body-worn cameras for Park Police ($132000) The debt service on the Internal Service Capital Equipment Fund increases by $617500 based on proposed spending for Information Technology upgrades and vehicle and equipment purchases

6

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

New Initiatives Addressing Deficiencies and Emerging Trends

The FY18 proposed budget includes $1404616 to address what the Department has identified as deficiencies in the work program as well as emerging trends aimed at meeting the needs of the future Included in the funding are new positions listed below The need for each of these requests is described on copy 21-22 Most of these new positions are associated with an improved or enhanced level of service or a new program (some required by legislative or court mandate) rather than a maintenance of existing levels of service Where there is existing staff already performing the function Staff has provided this information in parenthesis

bull 30 seasonal WYs and supplies funding to provide activities and programs that will increase daily use of urban parks

bull 30 seasonal WYs to restore the Departmental internship program bull 1 full-time career position (converted from a term contract position) for a natural resource

specialist to map and update trails data in GIS and on the Department web page bull 2 full-time career staff and 15 seasonal WYs as well as supplies and materials funding for the

creation of a new trails crew to convert unsanctioned trails to sanctioned trails (existing 4 WY s and 15 seasonal WYs)

bull 4 dedicated full-time career staff and supplies and materials funding for a ballfield crew to focus on enhancing and renovating ballfields to provide improved maintenance and quality of turf in local park sites throughout the County (existing 3 dedicated staff plus staff from the Northern and Southern Parks Divisions who perform general park maintenance such as mowing)

bull I full-time career position that is funded as a 5050 split with the Capital Improvements Program (CIP) for a quality assurance officer to support and monitor the design and construction phases of CIP projects

bull 1 full-time career position converting from a part-time career for managing the Weed Warrior Program

bull 2 full-time career positions and supplies and services funding to provide control of non-native invasive plants meadow management and reforestation area maintenance (existing 3 WYs)

bull I dedicated full-time career position split 30170 with the CIP to assist in tracking and reviewing active Americans with Disabilities Act (ADA) projects within the elP and maintenance program and also tracking and updating the status of amenities in the Enterprise Asset Management (EAM) system (existing 3 ADA staff) and

bull 1 full-time career position funded through the Enterprise Fund with part of the cost as a charge back to the Park Fund for a Program Access Outreach Specialist to coordinate inclusion services training and outreach for the Department (existing 2 WY s outreach staff)

Given the Countys fiscal constraints Staff is concerned about the ongoing growth in park staffing and whether the County has the ability to enhance services (even where required by legislation or court mandates) without making offsetting reductions in staffing elsewhere

Additional new positions fully funded by the Enterprise Fund are described under the section of this memorandum addressing the Enterprise Fund below

7

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

COSTS BY DIVISION

After a few years of presenting a program-based budget the Department reverted to presenting cost by Division six years ago Previously the Department indicated they would reconsider this decision once the new Enterprise Resource Planning (ERP) system was operational and they had a full year of data from the new system

Without a program budget the Council is forced to assess costs based on allocations to relatively large divisions and the incremental changes made this year Information presented in this form makes it difficult for the Council to directly assess the impact of increases or decreases in funding on programs

The Division allocation appears below (from pages 248-253 of their budget) In total they are requesting $79 million (79 percent increase) in additional funding and 237 additional workyears (33 percent increase)

8

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

FY17 AND FY18 PARK FUND BUDGET

Approved FY17 FYl8 Request

Change from

FYI7 to FYI8

Change fromFY17 to

FYI 8 Director ofParks ($) $ 1540997 $ 1691035 $ 150038 97

workyears 1270 1280 01 08

Public Aifuirs and Community Partnerships ($) $ 2699010 $2906278 $ 207268 77

workyears 229 237 08 35

Management Services ($) $ 1752965 $ 1884536 $ 131571 75

workyears 1290 1390 1 78

Infunnation Technology and Innovation ($) $ 2345089 $2319436 $ (25653) -11

workyears 87 86 -01 -11

Park Plannit1g and Stewardship ($) $ 4729310 $ 5186457 $ 457147 97

workyears 4270 4730 46 108

Park Development ($) $ 3242259 $ 3395134 $ 152875 47

workyears 2510 2580 07 28

Park Police ($) $ 14160643 $ 14699032 $ 538389 38

workyears 11160 11220 06 05

Horticulture Forestry and Environmental Education ($) $ 9133771 $ 9851020 $ 717249 79

workyears 9240 9720 48 52

Facilities Management ($) $ 11844367 $ 12270870 $ 426503 36 workyears 9830 9860 030 03

Northern Region ($) $ 10238687 $ 10540405 $ 301718 29 workyears 11900 12180 28 24

Southern Regiln ($) $ 13137439 $ 13966954 $ 829515 63 workyears 15870 16330 46 29

Support Services ($) $ 10951898 $ 12128270 $1176372 107 workyears 260 610 35 1346

Non-Departmental (compensation and OPEB) $4994090 $6923012 $1928922 386 Grants $400000 $400000 $0 00 Capital Projects Fmds $350000 $350000 $0 00 Debt Service $4846969 $5511210 $664241 137 Budgetary Reserve (at 3) $2735100 $2944900 $209800 77

Fund Total ($) $99102594 $106--968549 $7865955 79 Fund Total - workyears 70760 73130 2370 33

9

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

IMPROVING OPERATIONS

Each year Staff asks the Department to describe their efforts to increase efficiency over the prior year and also to indicate what actions they have taken to implement the recommendations of their strategic planning effort - Vision 2030 Attached on copy 23-24 are their responses to these questions In summary they have increased their use of technology in the field have developed more efficient inspection routes are using more efficient equipment and finding ways to share equipment are better managing inventories are reusing trees that are taken down and landscaping debris and are employing environmental measures that decrease pesticide and herbicide use and reduce energy consumption Staff believes that the Department should be commended on these impressive initiatives

REDUCTIONS TO MEET THE EXECUTIVE-RECOMMENDED FUNDING LEVEL

The Department of Parks would need to reduce their proposed budget by $43 million to achieve the Executive-recommended level of funding In addition to eliminating the new initiatives this level of reductions would not enable them to maintain the FYI7 level of services or fully fund the known operating commitments listed above Staff asked the Department to indicate what reductions they would make to reach the Executive-recommended funding level They have identified the following reductions grouped in two tiers Tier 1 items they believe are essential needs that are the highest priority for funding Tier 2 items are the lower priorities Through belt-tightening they believe they can address all Tier 2 items and are only requesting that Tier 1 items be restored Additional detail on each ofthese reductions and their impact are provided on copy 20-22

Tier 1 - Essential Needs

Departmental Priority for Restoration Funding Positions Workyears

Tier I-a Activating Urban Parks -Energizing Public Spaces 125000 30

Tier 1-b Improving the quality and playability ofba1lfields 625463 40 40

Tier 1-c Enhancing and expanding the trail system 212269 20 35

Tier I-d OBI (Operating Budget Impact) - Operating and maintaining new and expanded parks

109541

Tier 1-e Contractual increases - sustaining the Departments contractual agreements 235150

Tier 1-f Int1ationary Increases associated with supplies and materials utilities and maintenance equipment

236699

Tier 1-g ADA Assistant - Assisting with ADA compliance 24412 10 03

Tier 1-h Quality Assurance Officer - Oversee design and construction phases of new projects to ensure safety and design compliance

50292 10 05

Tier 1-i Cultivating the Next Generation ofPark Leaders and Workers - internship program

75000 30

Tier 1-j Weed Warrior Program Lead 17045 02

Tier 1-k Resource Analyst - overseeing new project reviews to improve water quality

100583 10 10

Tierl-l Program Access Outreach Specialist - Assisting with ADA compliance for park faciIities and programs

81329 09

SUBTOTAL TIER 1 - Departmental Priority to go on Reconciliation List 1892783 90 164

10

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

Tier 2 - Budget Reductions to Meet the FY18 County Executive Recommendation Funding Positions Workyears

Tier2-a NNIIMeadowslRefurestation Maintenance 193806 20 20 Tier2-b StorrnwaterlBioretention Management - vehicles 100000 Tier 2-c Vohmteer Coordinator Assistant 81112 10 10 Tier 2-d Delay hiring ofessential needs positions 191454 Tier2-e Debt Service on Capital Equipment ISF - delaying financing 513000 Tier 2-f Risk Management Chargeback 100000 Tier2-g Chargeback fur CIO AllocationiCWIT 56096 Tier2-h Prepay FY18 Non-personnel items with savings from FY17 697246 Tier2-i Purchase ofSpecialized Equipment - Mini Excavator 60000

Tier 2-j Remove capital outlay fimding - one time purchase completed in FY17 55000

Tier 2-k Reclassification Marker - defer part ofthe funding to FY19 321541

Tier 2-1 CAS Chargeback - Park Fund Audit - Grants 6760

SUBTOTAL TIER 2 - Adjustments to FY18 Proposed Budget 2376015 30 30

TOTAL OF ALL TIERS - 1 AND 2 4268798 120 194

While Staff believes that the Tier 1 non-recommended reductions are worthy endeavors most represent enhancements in service rather than expenditures necessary to retain the existing level of service The Committee will have to determine whether these enhancements are justified in the context of other tradeoffs that will need to be made during the Councils review of the budget Staff believes Tier I items should be added to the reconciliation list for consideration among other priorities

Staff recommends that the Committee discuss the recommended increase in funding for the maintenance of park ballfields ($625463) The Council had previously expressed an interest in ensuring that park and school fields have comparable maintenance (although there would be different tiers of maintenance within each agency---eg recreational park fields would be maintained at a different level than local park fields and high school fields would be maintained at a different level than elementary school fields) The proposed funding in the FY18 budget would increase the quality of maintenance at school fields while there are still numerous school fields that are not being maintained at anything more than the bare minimum necessary to avoid significant safety hazards

THE PROPERTY MANAGEMENT FUND

The Property Management Fund provides for the oversight management maintenance administration and leasing of parkland and facilities located on parkland (see fiscal summary on page 42 and discussion on pages 245-246) In FY18 rental revenue is proposed to decrease by $7900 or 06 percent due to the end of a parking lease and increase in property vacancies related to historic status Personnel costs will increase by $9778 for compensation increases while supplies and materials will decrease by $15878 due to reductions in contractual maintenance and property services associated with vacant properties

11

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

The funding request is as follows

FYI7 and FYI8 PROPERTY MANAGEMENT FUND FY17 Budgeted (Revenues and Expenditures

$1319000

FY18 Request (Revenues and Expenditures)

$1311100

Change from FY17

to FY18

Change from FY17 to

FY18 $7900 -06

7WY 7WY OWY 0 Note Workyears include chargebacks

THE ENTERPRISE FUND

The Enterprise Fund accounts for various park facilities and services that are entirely or predominantly supported by user fees (See pages 255-277 for a discussion of the Enterprise Fund) Recreational activities include ice rinks indoor tennis event centers boating and camping programs Operating profits are reinvested in new or existing enterprise facilities through the Capital Improvements Program The FY18 budget projects overall Fund revenue over expenditures of over $14 million (see page 48 in the budget) allowing it to allocate $1050000 for transfers to capital improvements and still have over $800000 in net revenues

The proposed expenditures for the Enterprise Fund for FY 18 are as follows

FY17 and FY18 ENTERPRISE FUND EXPENDITURES (after $1300000 transfer out in FY17 and $1050000 in FYI8)

FY17 Budget

FY18 Request

Change from FY17 to FY18

Change from FY17 to FY18

$10012147 $10347797 $335650 34 1193 WY 1267 74 62

Revenues and Losses by Activity

The following chart indicates whether each of the Enterprise Fund activities has generated or is expected to generate a positive return in years The net revenues for ice rinks event centers and park facilities all are calculated after a transfer to the Capital Improvement Program (CIP) (Net revenues prior to the transfer are significantly higher as shown in the last line of the chart below) In FYI8 all Enterprise Fund activities except the Event Centers are expected to operate with net revenues prior to transfers to the CIP Although Ice Rinks are shown below as having negative net revenues there will be a $900000 transfer to the CIP for Ice Rinks improvements

12

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

ENTERPRISE FUND OVER(UNDER EXPENDITURES

Actual FY16

Budgeted FY17

Estimate FY17

Proposed FY18

Change Budget 17 to Proposed 18

GOLF COURSES ($186709) $24000 $53932 $15000 -375

ICE RINKS ($111666) $926374 $803325 ($413047) -1446

INDOOR TENNIS $344908 $406705 $409672 $424365 43

EVENT CENTERS ($105105) ($62762) ($54393) ($14548) 768

PARK FACILITIES $774637 ($625282) $480644 $356414 1570 TOTAL (including transfers to CIP) $716065 $669035 $1693180 $368184 -450 Transfers ($900000 for ice rinks $150000 for Park Facilities in FYI8) $800000 $1300000 $0 $1050000 -192

TOTAL (before transfers to CIP) $1516065 $1969035 $1693180 $1418184 -280

Golf - Golf courses are operated by the Montgomery County Revenue Authority (MCRA) Under the terms of their lease the MCRA is required to make a percentage rent payment when net revenues generated by the golf courses exceed the lease-stated threshold of $51 million for the three courses FY17 is the fourth year they have exceeded the threshold and will be paying approximately $53932 to the Commission The budget for FY18 was prepared before they knew what the rent payment was and appears to underestimate the likely amount and overall net revenue for the Enterprise fund Since the Enterprise Fund is self-sustaining this does not impact the allocation of County tax dollars

Ice Rinks - In FY18 M-NCPPC proposes to install a new refrigeration system for the NHL and Studio Rinks and replace the rink floors This will require a $900000 capital expenditure and loss of revenue for the 25 months the rinks must close for the installations With these costs the rinks will lose $413047 in FY18 after making over $800000 in FY17 (From year to year the revenues of one activity subsidize the losses and capital expenditures of other activities)

Indoor Tennis - Increases in contracts rentals and bookings are projected to result in a a $60196 increase in revenues in FY18 and a 43 increase in net revenues to $424365

Event Center revenues are projected to decrease by $150000 in FY18 or 19 Bookings at Woodlawn Manor have been limited due to increased programming at the Woodlawn Visitors Center Museum and Underground Railroad ($98000 decrease) and new rental restrictions at Rockwood Manor to address community concerns has led to a $40000 decrease in rental revenue

Park Facilities are anticipated to generate over $350000 in net revenue after $150000 in capital expenditures at Little Bennett Campgrounds related to ADA improvements and improvements in the grinder pump and amenities M-NCPPC decided not to move ahead with the significant CIP improvements planned in FY17 due to staff availability in Park Development and Facilities Management to implement the projects

Administration is funded via chargebacks to the other Enterprise activities In FY18 Administration costs are proposed to increase by 35 percent The budget proposes a new full-time position for a

13

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

Program Access Outreach Specialist to provide support by leading efforts in training awareness programs and public outreach Overall workyears decrease from 208 to 158 due to a reduction in seasonalintermittent workyears

THE ADVANCE LAND ACQUISITION REVOLVING FUND (ALARF)

The Advance Land Acquisition Revolving Fund (ALARF) is used to acquire land needed for public purposes including parks roads school sites and other public uses (See pages 300-306 for the discussion of the Advance Land Acquisition Revolving Fund) There is an ALARF project description form (PDF) in the CIP but ALARF is also shown in the operating budget because it is a revolving fund and repayments to the fund need to be held as an operating budget account

The intent is for the agency or department that ultimately builds the project to repay ALARF repayment has not consistently occurred in the past Although the fund is a revolving fund there is frequently a lengthy lapse in time before it is refunded and in some cases repayment does not occur M-NCPPC held on to many millions of dollars in real estate for many years for the Inter-County Connector (ICC) and was ultimately repaid by the State To provide the appropriation authority the budget assumes that the entire fund balance will be spent in FY18 Council approval is still required for each ALARF purchase

Whenever the fund drops inappropriately low M-NCPPC issues new bonds to restore the balance For FY18 they recommend total expenditures of $1950000 in the Debt Service Fund an increase of $76253 or 45 percent and recommend total expenditures in the Revolving Fund of $2854136 or 73 percent less than FY17 Each year the Budget assumes that the total balance in the Revolving Fund will be spent which is rarely the case

frnichaelsonbudget - pamppoperating budgetlty17160418cpdoc

14

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

MONTGOMERY COUNTY PLANNING BOARD THE MARYLAND-NATIONAL CAPITAL PARK AND PLANNING COMMISSION

OFFICE OF HiE CrLmiddotUR

January 132017

The Honorable Isiah Leggett The Honorable Roger Berliner Montgomery County Executive President Montgomery County Council Executive Office Building Stella B Werner Council Office Building 101 Monroe Street 100 Maryland Avenue Rockville MD 20850 Rockville MD 20850

Dear Mr Leggett and Mr Berliner

Pursuant to sect18-1 04 of the Land Use Article of the Annotated Code of Maryland the Montgomery County Planning Board is pleased to transmit the FY18 Proposed Budget for the operations of the Maryland-National Capital Park and Plann ing Commission in Montgomery County This comprehensive document is presented at the budget appropriate departmental and divisional levels including lists of the programs and services provided by each division

Only after the proposed budget had been completed and submitted for Commission approval did we become aware of the budget direction provided to the Countys internal departments and agencies Our budget development and submission calendar did not allow for consideration ofthis information and therefore this document is submitted as proposed

Although we have proposed increases where needed to address critical needs we fully understand the ongoing economic challenges and will work with the Council and Executive to incorporate adjustments as needed

On-going Service Provision

The Commissions primary mission remains unchanged providing clean and safe parks and delivering a timely comprehensive development review program key master plans and other critical planning programs which drive economic development It is our goal to continue to give our customersresidents excellent service We are proud to have been awarded the National Gold Medal Award for excellence in Parks and Recreation Management in 2015 This is the sixth time we have been so recognized by the American Academy for Park and Recreation Administration in partnership with the National Recreation and Park Association

Cognizant of the limited resources available we will continue to work with the County to reach an appropriate balance with service delivery demands The FY18 Proposed Budget focuses on maintaining service levels responding to federalstatelocal mandates and addressing a limited number of critical needs The FY18 Proposed Budget includes increases related to necessary planning studies legislative mandates (which include a phased in increase of the minimum wage) and operating costs of new parks

The FY18 proposed tax-supported operating budgefis $1376 million This is $89 million more than the FY17 adopted budget a 69 percent change reflecting the critical needs requests The total

8787 Georgia Avenue Silver Spring Maryland 20910 Phone 3014954605 Fax 3014951320 vwwmoDtgsmcrTilDrnngbodrcic[g E-hil mcp-chairnlncppc-morg

(I)

The Honorable lsiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 2

proposed budget including Enterprise operations Property Management Park Debt Service and Special Revenue funds is $1604 million an increase of$98 million or 65 percent from the FY17 adopted budget

Summary of FY18 Proposed Operating Budget Expenditures (net reserves ALARF Internal Service Funds and CaEital Projects Funds)

FY17 FY18 $ Adopted Proposed Change Change

Montgomery Funds

Administration (1) $ 30464202 $ 31643571 $ 1179369 39

Park (2) 96367494 104023649 7656155 79

ALA Debt 1865573 1950000 84427 45

Subtotal Tax Supported 128697269 137617220 8919951 69

Enterprise (3) 10012147 10347797 335650 34

Property Management 1319000 1311100 (7900) -06

Special Revenue 5751622 5634625 (116997) -20

Park Debt 4846969 5511210 664241 137

Total Montgomery $150627007 $160421952 $ 9794945 65

(1) Includes transfer to Special Revenue

(2) Includes transfer to Park Debt Service and Capital Projects

(3) Includes transfer to Capital Projects

Although fiscal challenges remain at all levels of government induding the Commission there are several positive indicators For FY18 assessable base is projected to grow at a rate of about 426

percent The Economic and Revenue Update from the Montgomery County Department of Finance released in December 2016 shows a drop in unemployment from 40 percent in October 2015 to 34 percent in October 2016 an increase in resident employment and an estimated 46 percent increase in wage and salary income for 2016 This follows an increase of 48 percent in 2015 and a 64 percent increase in existing home sales after increasing 111 percent in 2015

These positive indicators are welcome after the declines experienced in recent years but at the same time do not mean that the Commission is relieved of fiscal stress Costs continue to grow at higher rates than the revenues that support them Secondly National Pollutant Discharge Elimination System (NPDES) and American with Disabilities Act (ADA) mandates and Operating Budget Impacts (OBI) from previously approved CIP projects impact the base budget Maintenance needs are more expensive to address the longer they are deferred With property tax revenue making up more than 94 percent of operating revenues growth although modest means the Commission must manage its resources carefully to sustain a stable financial position

The following table begins with our FYi adopted budget total and adds each of the elements that make up the proposed General Fund increase totaling 70 percent

iif)

The Honorable lsiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 3

M-NCPPC Summary ofFY18 Proposed Budget Major Changes

Montgomery County General Fund Accounts Administration and Park Funds (excludes property management and reserves)

BudgetAmount Change

FY 17 Adopted Budget $ 126831696

FY18 Major Changes- increase (decrease)

Major Per~Qnnel Cost Changes OPEB Paygo and prefunding (81746)

Health Insurance 55763 Pension (ERS) 2120050

Employee Compensation Marker 1975067 Reclassification Marker 820301

--------~~~=-

Subtotal Major Personnel Changes 4889435 39 Major Non-Personnel Cost Changes

Debt Service 664241 Park- NPDES 549349

OBr 109541 Investment in Critical Needs 1612879

Operating Major Known Commitments ___--=1O10--O7c9_____ Subtotal FY18 Major NonPersonnel Changes 3946089 31

Total Dollar Change for Major Changes ====8=8=3=5=5=2=4= 70

TOTAL FY1B Proposed Budget ===$==1=3=-5=6=6=7=2=2=0==

OVERVIEW OF BUDGET DEVELOPMENT AND ASSUMPTIONS

The Commission is putting forth a budget for FY18 that includes increases for major known commitments and investments in critical needs and seeks to continue to rebuild service levels

The Proposed Budget includes the following major known commitments for personnel costs in FY18

bull Medical insurance and benefit costs bull Full funding of OPEB PayGo and Pre-Funding as determined by the actuarial study bull Full funding of pension contribution as determined by the actuarial study and bull Dollar markers to adjust employee compensationreclassification

In past years the Commission has taken a number of difficult steps to reduce costs in order to enable delivery of services These steps included renegotiating union contracts keeping wages flat from FYll through FY13 implementing retirement incentive plans and redesigning medical and

iii

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 4

pension plans while continuing to ask our employees to share more of the cost We continue to reap the benefits of these actions especially in the health benefits area

As shown in the following table personnel expenses reflect an increase of $489 million

The FY18 Proposed Budget

compensation Summary of Changes in Major Personnel Costs marker Montgomery County Administration Fund and Parl Fund represents the largest cost

FY17 Adolted

FY18 Prolosed

S Change Change

increase OPEB followed by OPEB Paygo amp Prefunding $ 6464146 S 6382400 $ (81746J -13

the increased Pension (ERS) cost for Pension (ERSJ 8298478 10418528 2120050 255

pension Health and Benefit~(1)

Employee Health Benefits 13560274 13616037 55763 04 The net change for

Subtotal Personnel Costs $ 28322898 $ 30416965 $ 2094067 74

total Other Employee Compensationmiddot

Postshy Marker for Changes to Employee Compo 1975067 1975067

Employment Marker for Possible Reclassifications 820301 820301

Benefits Total Major Personnel Costs $ 4889435 (OPES) costs is $81746 a (1) Health and Benefitlt includes med ICdllnlturances (helth den tal vision prescription) long-term d~bility accidental death and

dlom~mberrnenr and Ufe Insurancedecrease of 13 percent Total OPEB funding is $638 million OPEB is shown in Non-Departmental accounts in individual funds rather than being allocated to each department

As determined by the actuary pension costs will increase by 255 percent in FY18 representing a cost of $212 million over the FY17 budget Having decreased by a similar percentage in FY17 this increase is due to an updated actuarial assumption review from this past spring which showed that our retirees are living longer thereby impacting the pension plan Health benefit costs are projected to increase by 04 percent resulting in a minor cost increase of$55763 from the FY17 Budget

As for employee compensation the budget includes a dollar marker of$198 million We are in full contract negotiations with the FOP and are in a wage reopener with MCGEO for FY18 the results of which will be presented for approval at the Joint County Council Meeting in May 2017 Also included is $820 thousand for possible reclassification adjustments based on the multi-year classification study thatis under way

Investing to Meet Critical Equipment Maintenance and Essential Service Needs

Included in the funding levels of the Administration Fund and Park Fund is a funding request of approximately $16 million to address critical maintenance equipment and essential service needs

i1)iv l

I

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 5

Each departments budget sections provide detailed information on how this increased investment is proposed to be used The following is a summary of the requests by department

Essential Nee ds Fund Department Inve stmentAmount Administration Planning $ 73000

Administration Commissioners Office Administration DHRM 63657 Administration Legal 35012 Administration Finance 27944 Administration Internal Audit 8650 Park Parks 1404616

Total $ 1612879

Summary ofFYiS Proposed Budgets for General Fund

The following table provides a comparative summary of the FY18 proposed budget to the FY17 adopted budget for the General Fund Specific changes in each of the departments are explained in full detail in the Department sections of the Budget Book

M-NCPPC

Summary of FY18 Proposed Budget General Fund Accounts

By Fund by Del1artment (excludes reserves

FY17 FY18 $ AdoQted Prol1osed Change Change

Montgomery

I Administration Fund

Commissioners Office S 1193633 $ 1176198 S (17435) -15

Planning Department Operating 19555706 19628945 73239 04

CAS 7556907 7925370 368463 49

I Transfer to Development Review

Grants

500000

150000

500000

150000 00

00

Non-Departmental (1) 1507956 2263058 755102 501

I Subtotal Admin Fund 30464202 31643571 1179369 39 Park Fund

Park Department Operating 85776435 90839427 5062992 59

Transferto Debt Service 4846969 5511210 664241 137

I Transfer to Capital Projects 350000 350000 00

I Grantlt 400000 400000 00

Non-Departmental [1) 4994090 6923012 1928922 386

SUbtotal Park Operating 96367494 104023649 7656155 79

Montgomery Opera ting Subtotal 126831696 135667220 8835524 70

Property Management 1319000 1311100 (7900) -06

I Montgomery General Fund Total $ 128150696 $ 136978320 $ 8827624 69

(1) NonmiddotDepartmental for FY17 Adopted includes 0 PEB prefunding and 0 PEB paygo For FYl8 NonmiddotDepatmental includes 0 PEB prefunding and OPEB paygo and a budget marker for compensation adjustments

I

I

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 6

PROGRAM HIGHLIGHTS

We are committed to a FY18 work program that helps achieve our goal of maintaining Montgomery County as one of the nations best places to live Below are some highlights of the program budget focus in each of the departments A more detailed discussion of department budgets is provided in each Departments section of the Budget Book

Parks Department

The Department of Parks will focus on delivering core services to properly operate maintain and protect our park system

The Commission continues to develop and maintain one of the largest and most diverse park systems in the nation with over 36000 acres in 418 parks Montgomery Parks has balanced the dual roles of providing developed parkland for active and passive recreational opportunities that promote healthy active life styles and serving as stewards and interpreters of Montgomery Countys natural and cultural resources by conserving parkland From playgrounds and sports fields to park benches and trails parks offer opportunities for people of all ages to communicate compete interact learn and grow Proximity to parks has been shown to increase property values

Montgomery Parks seeks to provide quality recreational and educational opportunities through its operation construction development and maintenance of a wide variety of facilities to meet the varied needs and interests of the Countys residents Montgomery Parks Vision 2030 plan prepared together with the Countys Department of Recreation is a comprehensive planning effort to develop long range plans and serves as a guide for future park development and resource protection to better address changing needs and growth forecasts through 2030

The Departments FY18 budget includes increases for

bull Compensation adjustments bull Unfunded Operating Budget Obligations including Operating Budget Impacts from Capital

Improvement Projects bull Known operating commitments bull Debt service on general obligation park bonds capital equipment and Commission-wide

information technology initiatives and bull National Pollutant Discharge Elimination System (NPDES) mandates

In addition the FY18 budget includes funding to address identified deficiencies in our work program as well as emerging trends aimed at meeting the future needs of the department such as

bull Activating Urban Parks bull Cultivating the Next Generation of Park Leaders and Workers bull Enhancing and Expanding the Trail System bull Improving Quality and Playability of Ballfields bull Maximizing Operational Efficiency and Reliability bull Meeting Legislative Mandates bull Enterprise Operations

vi

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 7

Together we have created a highly popular valued and nationally-recognized park system Our entire team remains committed to honoring our core vision to provide an enjoyable accessible safe and green park system that promotes a strong sense of community through shared spaces and experiences and is treasured by the people it serves We will continue to aggressively seek new funding opportunities and to improve work program efficiencies We remain committed to forming viable partnerships and strong relationships with our stakeholders and within our communities

The FY18 budget request will enable us to continue to provide safe clean parks keep our programs and facilities accessible and affordable and maintain the quality of life for which Montgomery County is renowned

Planning Department

The Planning Department continues to deliver its core services to improve the quality of life in Montgomery County by conserving and enhancing both natural and man-made environments for current and future generations Central to this role the Department develops master plans reviews development applications and researches analyzes and presents information to the community and public officials to aid in planning for Montgomery Countys future

In addition to the FY18 work plan that is detailed in the Departments budget section the following critical needs are proposed

o One-Time projects

bull Assessmentresearch for a Future General Plan Update

bull The Missing Middle - Design and Economics Study

bull New Roadway Functional Classification System

bull Integrated Multi-Modal GIS Network

bull Agri-Tourism Study bull University of Marylands National Center for Smart Growth partnershjp for

assistance for the assessmentresearch for a future General Plan Update Bikeways Plan UpdateMonitoring and Makeover Montgomery 4 Conference M-NCPPC 90th Anniversary Celebration

bull Transportation and Design Studies - Gaithersburg East Master Plan bull Traffic Generation from Mixed-Use Development Projects Study

bull T901s and Analyses for Increased Biennial Transportation Monitoring

bull Transportation Analysis Supporting Bicycling Planning (every two years) o On-going project

bull Placernaking Initiatives

vii

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President MontgomelY County Council FY18 Proposed Operating Budget Transmittal January 132017 PageS

Central Administrative Services (CAS)

For FY18 CAS Departments work priorities will center on continuing to meet the needs of the operating departments Critical needs are proposed as follows

bull DHRM o One career position to lead mandatory training and leadership training o One term contract position in HR to address the seasonal workforce workload o Restoration of one workyear in the HR Directors Office

bull Finance Department Increased funding for ERP Support consulting and to move the ERP to Cloud Services

bull Legal Department Restoration of funding for a Case Coordinator bull Office of Internal Audit A part-time seasonal administrative position

Commissioners Office

The role of the Commissioners Office staff is to support the Chair and Planning Board in the performance of their official duties serve as the point of contact for meeting related issues and coordinate prompt responses to issues and inquiries from agencies and the general public This also includes preparing and web posting the Boards meeting agenda producing and preserving records of official Board proceedings and managing correspondence between the Board and other agencies and the public

In addition to known operating commitments the FY18 Proposed Budget for the Commissioners Office includes some minor operating increases

Capital Budget

This transmittal also includes the Capital Budget (the second year ofthe six year Capital Improvements Program (CIP) since the County adopts the CIP every other year) Highlights of this budget can be found within the Department of Parks detail pages

TAX RATES AND LONG-TERM FISCAL SUSTAINABILITY

Beyond meeting the immediate FY18 challenges the Commission continues to strive for long-term fiscal sustainability Property taxes comprise more than 94 percent of operating revenue in the taxshysupported funds The Commission in proposing this budget is requesting a change in the property tax rates for both the Administration and the Park Funds The requested increase in the real property tax rate is 002 cent for the Administration Fund and 015 cent for the Park Fund At this level the total tax rate is still below what it was in FY07

The FY18 Proposed Budget requests a total tax rate for property tax supported funds of745 cents real property and 1863 cents personal property The breakdown by fund is as follows

bull Administration Fund 172 cents real and 430 cents personal bull Park Fund 563 cents real and 1430 cents personal and bull Advanced Land Acquisition Fund 010 cents real and 025 cents personal

viii (b

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 9

At these tax rates the Commission will have sufficient property tax revenues to meet the FY18 proposed expenditures and reserve requirements for the Administration and Park Funds provided the tax increase is approved

IACTUAlFUNDS j ACTUAl I ACTUAl I ACTUAl IACTUAlI ACTUAl I ACTUAL IADOPTEDJADOPTED IPROPOSEDI ACTUAL J ACTUAL FY07 FYOS FY09 FY10 FYll FY12 FY13 FY14 FY1S FY16 FY17 FY18

Administration Fund

Reali 200 I 190 I 190 I 180 I 150 I 170 I 1BO I 180 I 170 I 180 I 170 I 172

personalj 500J 470 I 470 I 4S0j 3BO I 430j 450 I 450 I 425 I 450J 425 I 430

Park Fund

Reali 570 I 580 I 530 I 500 I 450 I 4BO 1 5401 5301 5601 552J 5481 563

Personall 14301 1450 I 1320 I 1250 I 1120 I 1200 I 1350 I 1325 1400 13BO 1370 I 140B

Advance Land Acquisition Fund

RealI 010 010 I 010 I 010 I 010 I 010 I 010 0101 010 I 010 I 010 I 010

Personal 030 I 0301 030 I 030j 030 I 030 J 030 I 025 I 0251 02Sj 025 I 025

Total TaK Rates (Cents)

Real[ 7BO I 7S0 I 730 I 690 I 610 I 660 I 7301 720J 7AOI 7421 7281 745

Personal[ 1960 I 1950 I 1820 I 1730 I 1530 I 1660 I 1830 I 1800 I 1850 I IB5S I 1820 I 1863

MONTGOMERY COUNTY PROPERTY TAX RATES (Cents per $100 of assessed value)

CONCLUSION

The Proposed 2018 Budget is respectfully submitted for your consideration In this document we are proposing a budget that not only moves us forward incrementally but allows us to address several critical needs and previously scaled back parks maintenance We continue to explore potential collaborative efforts across departments and counties in our effort to provide efficient effective quality service while maintaining our fiscal responsibility and commitment to the community we serve

We continue to strive to find new ways to save taxpayer dollars while providing quality service and achieving progress in our many areas offoeus We look forward to working with you and your staffs on this budget Working together we will do everything in our power to ensure that taxpayer dollars are invested wisely in our collective future

Respectfully Submitted ~----~-

clt~--

ca~A~erson Chair

ix

Marylmiddotand-National Capital Park and Planning Commission

I Mission Statement The Maryland-National Capital Park and Planning Commission (M-NCPPC) in Montgomery County manages physical growth and plans communities protects and stewards natural cultural and historical resources and provides leisure and recreational experiences

I Budget Overview The M-NCPPC was established by the General Assembly of Maryland in 1927 As a bi-county agency the Commission is a corporate body of and an agency created by the State ofMaryland The Commission operates in each county through a Planning Board and in Montgomery County a Park Commission Five board members appointed by the County Council serve as the Montgomery County members of the Commission The Planning Board exercises policy oversight to the Commissioners Office the Department of Parks the Planning Department and Central Administrative Services

On January 15 each year M-NCPPC submits to the County Council and the County Executive the M-NCPPC proposed budget for the upcoming fiscal year That document is a statement ofmission and goals justification of resources requested description ofwork items accomplished in the prior fiscal year and a source of important statistical and historical data The M-NCPPC proposed budget can be obtained by contacting the M-NCPPC Budget Office at 3014541731 or visiting the Commissions website at wwwmncppcorg Summary data only are included in this presentation

Tax Supported Funds The M-NCPPC tax supported Operating Budget consists of the Administration Fund the Park Fund and the Advance Land Acquisition (ALA) Debt Service Fund The Administration Fund supports the Commissioners Office the Montgomery County funded portion of the Central Administrative Services (CAS) offices and the Planning Department The Administration Fund is supported by the Regional District Tax which includes Montgomery County less the municipalities ofBamesville Brookeville Gaithersburg Laytonsville Poolesville Rockville and Washington Grove

The Park Fund supports the activities of the Department of Parks and Park Debt Service The Park Fund is supported by the Metropolitan District Tax whose taxing area is identical to the Regional District

The Advance Land Acquisition (ALA) Debt Service Fund supports the payment of debt service on bonds issued to purchase land for a variety ofpublic purposes The Advance Land Acquisition Debt Service Fund has a countywide taxing area

Non-Tax Supported Funds There are three non-tax supported funds within the M-NCPPC that are financed and operated in a manner similar to private enterprise These self-supporting operations are the Enterprise Fund the Property Management Fund and the Special Revenue Fund

Grants are extracted from the tax supported portion of the fund displays and displayed in the Grant Fund The Grant Fund as displayed consists ofgrants from the Park and Administration Funds

Special Revenue Funds are used to account for the proceeds from specific revenue sources that are legally restricted to expenditures for J)ecific purposes The budgets are associated with Planning and Parks operations throughout the Commission

Spending Affordability Guidelines In February 2017 the Council approved FY18 Spending Affordability Guidelines (SAG) of $120800000 for the tax-supported funds of the

MarylandmiddotNational Capital Park and Planning Commission Agency Summaries 12middot1

The Honorable lsiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 3

M-NCPPC Summary ofFY18 Proposed Budget Major Changes

Montgomery County General Fund Accounts Administration and Park Funds (excludes property management and reserves)

BudgetAmount Change

FY 17 Adopted Budget $ 126831696

FY18 Major Changes- increase (decrease)

Major Per~Qnnel Cost Changes OPEB Paygo and prefunding (81746)

Health Insurance 55763 Pension (ERS) 2120050

Employee Compensation Marker 1975067 Reclassification Marker 820301

--------~~~=-

Subtotal Major Personnel Changes 4889435 39 Major Non-Personnel Cost Changes

Debt Service 664241 Park- NPDES 549349

OBr 109541 Investment in Critical Needs 1612879

Operating Major Known Commitments ___--=1O10--O7c9_____ Subtotal FY18 Major NonPersonnel Changes 3946089 31

Total Dollar Change for Major Changes ====8=8=3=5=5=2=4= 70

TOTAL FY1B Proposed Budget ===$==1=3=-5=6=6=7=2=2=0==

OVERVIEW OF BUDGET DEVELOPMENT AND ASSUMPTIONS

The Commission is putting forth a budget for FY18 that includes increases for major known commitments and investments in critical needs and seeks to continue to rebuild service levels

The Proposed Budget includes the following major known commitments for personnel costs in FY18

bull Medical insurance and benefit costs bull Full funding of OPEB PayGo and Pre-Funding as determined by the actuarial study bull Full funding of pension contribution as determined by the actuarial study and bull Dollar markers to adjust employee compensationreclassification

In past years the Commission has taken a number of difficult steps to reduce costs in order to enable delivery of services These steps included renegotiating union contracts keeping wages flat from FYll through FY13 implementing retirement incentive plans and redesigning medical and

iii

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 4

pension plans while continuing to ask our employees to share more of the cost We continue to reap the benefits of these actions especially in the health benefits area

As shown in the following table personnel expenses reflect an increase of $489 million

The FY18 Proposed Budget

compensation Summary of Changes in Major Personnel Costs marker Montgomery County Administration Fund and Parl Fund represents the largest cost

FY17 Adolted

FY18 Prolosed

S Change Change

increase OPEB followed by OPEB Paygo amp Prefunding $ 6464146 S 6382400 $ (81746J -13

the increased Pension (ERS) cost for Pension (ERSJ 8298478 10418528 2120050 255

pension Health and Benefit~(1)

Employee Health Benefits 13560274 13616037 55763 04 The net change for

Subtotal Personnel Costs $ 28322898 $ 30416965 $ 2094067 74

total Other Employee Compensationmiddot

Postshy Marker for Changes to Employee Compo 1975067 1975067

Employment Marker for Possible Reclassifications 820301 820301

Benefits Total Major Personnel Costs $ 4889435 (OPES) costs is $81746 a (1) Health and Benefitlt includes med ICdllnlturances (helth den tal vision prescription) long-term d~bility accidental death and

dlom~mberrnenr and Ufe Insurancedecrease of 13 percent Total OPEB funding is $638 million OPEB is shown in Non-Departmental accounts in individual funds rather than being allocated to each department

As determined by the actuary pension costs will increase by 255 percent in FY18 representing a cost of $212 million over the FY17 budget Having decreased by a similar percentage in FY17 this increase is due to an updated actuarial assumption review from this past spring which showed that our retirees are living longer thereby impacting the pension plan Health benefit costs are projected to increase by 04 percent resulting in a minor cost increase of$55763 from the FY17 Budget

As for employee compensation the budget includes a dollar marker of$198 million We are in full contract negotiations with the FOP and are in a wage reopener with MCGEO for FY18 the results of which will be presented for approval at the Joint County Council Meeting in May 2017 Also included is $820 thousand for possible reclassification adjustments based on the multi-year classification study thatis under way

Investing to Meet Critical Equipment Maintenance and Essential Service Needs

Included in the funding levels of the Administration Fund and Park Fund is a funding request of approximately $16 million to address critical maintenance equipment and essential service needs

i1)iv l

I

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 5

Each departments budget sections provide detailed information on how this increased investment is proposed to be used The following is a summary of the requests by department

Essential Nee ds Fund Department Inve stmentAmount Administration Planning $ 73000

Administration Commissioners Office Administration DHRM 63657 Administration Legal 35012 Administration Finance 27944 Administration Internal Audit 8650 Park Parks 1404616

Total $ 1612879

Summary ofFYiS Proposed Budgets for General Fund

The following table provides a comparative summary of the FY18 proposed budget to the FY17 adopted budget for the General Fund Specific changes in each of the departments are explained in full detail in the Department sections of the Budget Book

M-NCPPC

Summary of FY18 Proposed Budget General Fund Accounts

By Fund by Del1artment (excludes reserves

FY17 FY18 $ AdoQted Prol1osed Change Change

Montgomery

I Administration Fund

Commissioners Office S 1193633 $ 1176198 S (17435) -15

Planning Department Operating 19555706 19628945 73239 04

CAS 7556907 7925370 368463 49

I Transfer to Development Review

Grants

500000

150000

500000

150000 00

00

Non-Departmental (1) 1507956 2263058 755102 501

I Subtotal Admin Fund 30464202 31643571 1179369 39 Park Fund

Park Department Operating 85776435 90839427 5062992 59

Transferto Debt Service 4846969 5511210 664241 137

I Transfer to Capital Projects 350000 350000 00

I Grantlt 400000 400000 00

Non-Departmental [1) 4994090 6923012 1928922 386

SUbtotal Park Operating 96367494 104023649 7656155 79

Montgomery Opera ting Subtotal 126831696 135667220 8835524 70

Property Management 1319000 1311100 (7900) -06

I Montgomery General Fund Total $ 128150696 $ 136978320 $ 8827624 69

(1) NonmiddotDepartmental for FY17 Adopted includes 0 PEB prefunding and 0 PEB paygo For FYl8 NonmiddotDepatmental includes 0 PEB prefunding and OPEB paygo and a budget marker for compensation adjustments

I

I

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 6

PROGRAM HIGHLIGHTS

We are committed to a FY18 work program that helps achieve our goal of maintaining Montgomery County as one of the nations best places to live Below are some highlights of the program budget focus in each of the departments A more detailed discussion of department budgets is provided in each Departments section of the Budget Book

Parks Department

The Department of Parks will focus on delivering core services to properly operate maintain and protect our park system

The Commission continues to develop and maintain one of the largest and most diverse park systems in the nation with over 36000 acres in 418 parks Montgomery Parks has balanced the dual roles of providing developed parkland for active and passive recreational opportunities that promote healthy active life styles and serving as stewards and interpreters of Montgomery Countys natural and cultural resources by conserving parkland From playgrounds and sports fields to park benches and trails parks offer opportunities for people of all ages to communicate compete interact learn and grow Proximity to parks has been shown to increase property values

Montgomery Parks seeks to provide quality recreational and educational opportunities through its operation construction development and maintenance of a wide variety of facilities to meet the varied needs and interests of the Countys residents Montgomery Parks Vision 2030 plan prepared together with the Countys Department of Recreation is a comprehensive planning effort to develop long range plans and serves as a guide for future park development and resource protection to better address changing needs and growth forecasts through 2030

The Departments FY18 budget includes increases for

bull Compensation adjustments bull Unfunded Operating Budget Obligations including Operating Budget Impacts from Capital

Improvement Projects bull Known operating commitments bull Debt service on general obligation park bonds capital equipment and Commission-wide

information technology initiatives and bull National Pollutant Discharge Elimination System (NPDES) mandates

In addition the FY18 budget includes funding to address identified deficiencies in our work program as well as emerging trends aimed at meeting the future needs of the department such as

bull Activating Urban Parks bull Cultivating the Next Generation of Park Leaders and Workers bull Enhancing and Expanding the Trail System bull Improving Quality and Playability of Ballfields bull Maximizing Operational Efficiency and Reliability bull Meeting Legislative Mandates bull Enterprise Operations

vi

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 7

Together we have created a highly popular valued and nationally-recognized park system Our entire team remains committed to honoring our core vision to provide an enjoyable accessible safe and green park system that promotes a strong sense of community through shared spaces and experiences and is treasured by the people it serves We will continue to aggressively seek new funding opportunities and to improve work program efficiencies We remain committed to forming viable partnerships and strong relationships with our stakeholders and within our communities

The FY18 budget request will enable us to continue to provide safe clean parks keep our programs and facilities accessible and affordable and maintain the quality of life for which Montgomery County is renowned

Planning Department

The Planning Department continues to deliver its core services to improve the quality of life in Montgomery County by conserving and enhancing both natural and man-made environments for current and future generations Central to this role the Department develops master plans reviews development applications and researches analyzes and presents information to the community and public officials to aid in planning for Montgomery Countys future

In addition to the FY18 work plan that is detailed in the Departments budget section the following critical needs are proposed

o One-Time projects

bull Assessmentresearch for a Future General Plan Update

bull The Missing Middle - Design and Economics Study

bull New Roadway Functional Classification System

bull Integrated Multi-Modal GIS Network

bull Agri-Tourism Study bull University of Marylands National Center for Smart Growth partnershjp for

assistance for the assessmentresearch for a future General Plan Update Bikeways Plan UpdateMonitoring and Makeover Montgomery 4 Conference M-NCPPC 90th Anniversary Celebration

bull Transportation and Design Studies - Gaithersburg East Master Plan bull Traffic Generation from Mixed-Use Development Projects Study

bull T901s and Analyses for Increased Biennial Transportation Monitoring

bull Transportation Analysis Supporting Bicycling Planning (every two years) o On-going project

bull Placernaking Initiatives

vii

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President MontgomelY County Council FY18 Proposed Operating Budget Transmittal January 132017 PageS

Central Administrative Services (CAS)

For FY18 CAS Departments work priorities will center on continuing to meet the needs of the operating departments Critical needs are proposed as follows

bull DHRM o One career position to lead mandatory training and leadership training o One term contract position in HR to address the seasonal workforce workload o Restoration of one workyear in the HR Directors Office

bull Finance Department Increased funding for ERP Support consulting and to move the ERP to Cloud Services

bull Legal Department Restoration of funding for a Case Coordinator bull Office of Internal Audit A part-time seasonal administrative position

Commissioners Office

The role of the Commissioners Office staff is to support the Chair and Planning Board in the performance of their official duties serve as the point of contact for meeting related issues and coordinate prompt responses to issues and inquiries from agencies and the general public This also includes preparing and web posting the Boards meeting agenda producing and preserving records of official Board proceedings and managing correspondence between the Board and other agencies and the public

In addition to known operating commitments the FY18 Proposed Budget for the Commissioners Office includes some minor operating increases

Capital Budget

This transmittal also includes the Capital Budget (the second year ofthe six year Capital Improvements Program (CIP) since the County adopts the CIP every other year) Highlights of this budget can be found within the Department of Parks detail pages

TAX RATES AND LONG-TERM FISCAL SUSTAINABILITY

Beyond meeting the immediate FY18 challenges the Commission continues to strive for long-term fiscal sustainability Property taxes comprise more than 94 percent of operating revenue in the taxshysupported funds The Commission in proposing this budget is requesting a change in the property tax rates for both the Administration and the Park Funds The requested increase in the real property tax rate is 002 cent for the Administration Fund and 015 cent for the Park Fund At this level the total tax rate is still below what it was in FY07

The FY18 Proposed Budget requests a total tax rate for property tax supported funds of745 cents real property and 1863 cents personal property The breakdown by fund is as follows

bull Administration Fund 172 cents real and 430 cents personal bull Park Fund 563 cents real and 1430 cents personal and bull Advanced Land Acquisition Fund 010 cents real and 025 cents personal

viii (b

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 9

At these tax rates the Commission will have sufficient property tax revenues to meet the FY18 proposed expenditures and reserve requirements for the Administration and Park Funds provided the tax increase is approved

IACTUAlFUNDS j ACTUAl I ACTUAl I ACTUAl IACTUAlI ACTUAl I ACTUAL IADOPTEDJADOPTED IPROPOSEDI ACTUAL J ACTUAL FY07 FYOS FY09 FY10 FYll FY12 FY13 FY14 FY1S FY16 FY17 FY18

Administration Fund

Reali 200 I 190 I 190 I 180 I 150 I 170 I 1BO I 180 I 170 I 180 I 170 I 172

personalj 500J 470 I 470 I 4S0j 3BO I 430j 450 I 450 I 425 I 450J 425 I 430

Park Fund

Reali 570 I 580 I 530 I 500 I 450 I 4BO 1 5401 5301 5601 552J 5481 563

Personall 14301 1450 I 1320 I 1250 I 1120 I 1200 I 1350 I 1325 1400 13BO 1370 I 140B

Advance Land Acquisition Fund

RealI 010 010 I 010 I 010 I 010 I 010 I 010 0101 010 I 010 I 010 I 010

Personal 030 I 0301 030 I 030j 030 I 030 J 030 I 025 I 0251 02Sj 025 I 025

Total TaK Rates (Cents)

Real[ 7BO I 7S0 I 730 I 690 I 610 I 660 I 7301 720J 7AOI 7421 7281 745

Personal[ 1960 I 1950 I 1820 I 1730 I 1530 I 1660 I 1830 I 1800 I 1850 I IB5S I 1820 I 1863

MONTGOMERY COUNTY PROPERTY TAX RATES (Cents per $100 of assessed value)

CONCLUSION

The Proposed 2018 Budget is respectfully submitted for your consideration In this document we are proposing a budget that not only moves us forward incrementally but allows us to address several critical needs and previously scaled back parks maintenance We continue to explore potential collaborative efforts across departments and counties in our effort to provide efficient effective quality service while maintaining our fiscal responsibility and commitment to the community we serve

We continue to strive to find new ways to save taxpayer dollars while providing quality service and achieving progress in our many areas offoeus We look forward to working with you and your staffs on this budget Working together we will do everything in our power to ensure that taxpayer dollars are invested wisely in our collective future

Respectfully Submitted ~----~-

clt~--

ca~A~erson Chair

ix

Marylmiddotand-National Capital Park and Planning Commission

I Mission Statement The Maryland-National Capital Park and Planning Commission (M-NCPPC) in Montgomery County manages physical growth and plans communities protects and stewards natural cultural and historical resources and provides leisure and recreational experiences

I Budget Overview The M-NCPPC was established by the General Assembly of Maryland in 1927 As a bi-county agency the Commission is a corporate body of and an agency created by the State ofMaryland The Commission operates in each county through a Planning Board and in Montgomery County a Park Commission Five board members appointed by the County Council serve as the Montgomery County members of the Commission The Planning Board exercises policy oversight to the Commissioners Office the Department of Parks the Planning Department and Central Administrative Services

On January 15 each year M-NCPPC submits to the County Council and the County Executive the M-NCPPC proposed budget for the upcoming fiscal year That document is a statement ofmission and goals justification of resources requested description ofwork items accomplished in the prior fiscal year and a source of important statistical and historical data The M-NCPPC proposed budget can be obtained by contacting the M-NCPPC Budget Office at 3014541731 or visiting the Commissions website at wwwmncppcorg Summary data only are included in this presentation

Tax Supported Funds The M-NCPPC tax supported Operating Budget consists of the Administration Fund the Park Fund and the Advance Land Acquisition (ALA) Debt Service Fund The Administration Fund supports the Commissioners Office the Montgomery County funded portion of the Central Administrative Services (CAS) offices and the Planning Department The Administration Fund is supported by the Regional District Tax which includes Montgomery County less the municipalities ofBamesville Brookeville Gaithersburg Laytonsville Poolesville Rockville and Washington Grove

The Park Fund supports the activities of the Department of Parks and Park Debt Service The Park Fund is supported by the Metropolitan District Tax whose taxing area is identical to the Regional District

The Advance Land Acquisition (ALA) Debt Service Fund supports the payment of debt service on bonds issued to purchase land for a variety ofpublic purposes The Advance Land Acquisition Debt Service Fund has a countywide taxing area

Non-Tax Supported Funds There are three non-tax supported funds within the M-NCPPC that are financed and operated in a manner similar to private enterprise These self-supporting operations are the Enterprise Fund the Property Management Fund and the Special Revenue Fund

Grants are extracted from the tax supported portion of the fund displays and displayed in the Grant Fund The Grant Fund as displayed consists ofgrants from the Park and Administration Funds

Special Revenue Funds are used to account for the proceeds from specific revenue sources that are legally restricted to expenditures for J)ecific purposes The budgets are associated with Planning and Parks operations throughout the Commission

Spending Affordability Guidelines In February 2017 the Council approved FY18 Spending Affordability Guidelines (SAG) of $120800000 for the tax-supported funds of the

MarylandmiddotNational Capital Park and Planning Commission Agency Summaries 12middot1

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 4

pension plans while continuing to ask our employees to share more of the cost We continue to reap the benefits of these actions especially in the health benefits area

As shown in the following table personnel expenses reflect an increase of $489 million

The FY18 Proposed Budget

compensation Summary of Changes in Major Personnel Costs marker Montgomery County Administration Fund and Parl Fund represents the largest cost

FY17 Adolted

FY18 Prolosed

S Change Change

increase OPEB followed by OPEB Paygo amp Prefunding $ 6464146 S 6382400 $ (81746J -13

the increased Pension (ERS) cost for Pension (ERSJ 8298478 10418528 2120050 255

pension Health and Benefit~(1)

Employee Health Benefits 13560274 13616037 55763 04 The net change for

Subtotal Personnel Costs $ 28322898 $ 30416965 $ 2094067 74

total Other Employee Compensationmiddot

Postshy Marker for Changes to Employee Compo 1975067 1975067

Employment Marker for Possible Reclassifications 820301 820301

Benefits Total Major Personnel Costs $ 4889435 (OPES) costs is $81746 a (1) Health and Benefitlt includes med ICdllnlturances (helth den tal vision prescription) long-term d~bility accidental death and

dlom~mberrnenr and Ufe Insurancedecrease of 13 percent Total OPEB funding is $638 million OPEB is shown in Non-Departmental accounts in individual funds rather than being allocated to each department

As determined by the actuary pension costs will increase by 255 percent in FY18 representing a cost of $212 million over the FY17 budget Having decreased by a similar percentage in FY17 this increase is due to an updated actuarial assumption review from this past spring which showed that our retirees are living longer thereby impacting the pension plan Health benefit costs are projected to increase by 04 percent resulting in a minor cost increase of$55763 from the FY17 Budget

As for employee compensation the budget includes a dollar marker of$198 million We are in full contract negotiations with the FOP and are in a wage reopener with MCGEO for FY18 the results of which will be presented for approval at the Joint County Council Meeting in May 2017 Also included is $820 thousand for possible reclassification adjustments based on the multi-year classification study thatis under way

Investing to Meet Critical Equipment Maintenance and Essential Service Needs

Included in the funding levels of the Administration Fund and Park Fund is a funding request of approximately $16 million to address critical maintenance equipment and essential service needs

i1)iv l

I

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 5

Each departments budget sections provide detailed information on how this increased investment is proposed to be used The following is a summary of the requests by department

Essential Nee ds Fund Department Inve stmentAmount Administration Planning $ 73000

Administration Commissioners Office Administration DHRM 63657 Administration Legal 35012 Administration Finance 27944 Administration Internal Audit 8650 Park Parks 1404616

Total $ 1612879

Summary ofFYiS Proposed Budgets for General Fund

The following table provides a comparative summary of the FY18 proposed budget to the FY17 adopted budget for the General Fund Specific changes in each of the departments are explained in full detail in the Department sections of the Budget Book

M-NCPPC

Summary of FY18 Proposed Budget General Fund Accounts

By Fund by Del1artment (excludes reserves

FY17 FY18 $ AdoQted Prol1osed Change Change

Montgomery

I Administration Fund

Commissioners Office S 1193633 $ 1176198 S (17435) -15

Planning Department Operating 19555706 19628945 73239 04

CAS 7556907 7925370 368463 49

I Transfer to Development Review

Grants

500000

150000

500000

150000 00

00

Non-Departmental (1) 1507956 2263058 755102 501

I Subtotal Admin Fund 30464202 31643571 1179369 39 Park Fund

Park Department Operating 85776435 90839427 5062992 59

Transferto Debt Service 4846969 5511210 664241 137

I Transfer to Capital Projects 350000 350000 00

I Grantlt 400000 400000 00

Non-Departmental [1) 4994090 6923012 1928922 386

SUbtotal Park Operating 96367494 104023649 7656155 79

Montgomery Opera ting Subtotal 126831696 135667220 8835524 70

Property Management 1319000 1311100 (7900) -06

I Montgomery General Fund Total $ 128150696 $ 136978320 $ 8827624 69

(1) NonmiddotDepartmental for FY17 Adopted includes 0 PEB prefunding and 0 PEB paygo For FYl8 NonmiddotDepatmental includes 0 PEB prefunding and OPEB paygo and a budget marker for compensation adjustments

I

I

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 6

PROGRAM HIGHLIGHTS

We are committed to a FY18 work program that helps achieve our goal of maintaining Montgomery County as one of the nations best places to live Below are some highlights of the program budget focus in each of the departments A more detailed discussion of department budgets is provided in each Departments section of the Budget Book

Parks Department

The Department of Parks will focus on delivering core services to properly operate maintain and protect our park system

The Commission continues to develop and maintain one of the largest and most diverse park systems in the nation with over 36000 acres in 418 parks Montgomery Parks has balanced the dual roles of providing developed parkland for active and passive recreational opportunities that promote healthy active life styles and serving as stewards and interpreters of Montgomery Countys natural and cultural resources by conserving parkland From playgrounds and sports fields to park benches and trails parks offer opportunities for people of all ages to communicate compete interact learn and grow Proximity to parks has been shown to increase property values

Montgomery Parks seeks to provide quality recreational and educational opportunities through its operation construction development and maintenance of a wide variety of facilities to meet the varied needs and interests of the Countys residents Montgomery Parks Vision 2030 plan prepared together with the Countys Department of Recreation is a comprehensive planning effort to develop long range plans and serves as a guide for future park development and resource protection to better address changing needs and growth forecasts through 2030

The Departments FY18 budget includes increases for

bull Compensation adjustments bull Unfunded Operating Budget Obligations including Operating Budget Impacts from Capital

Improvement Projects bull Known operating commitments bull Debt service on general obligation park bonds capital equipment and Commission-wide

information technology initiatives and bull National Pollutant Discharge Elimination System (NPDES) mandates

In addition the FY18 budget includes funding to address identified deficiencies in our work program as well as emerging trends aimed at meeting the future needs of the department such as

bull Activating Urban Parks bull Cultivating the Next Generation of Park Leaders and Workers bull Enhancing and Expanding the Trail System bull Improving Quality and Playability of Ballfields bull Maximizing Operational Efficiency and Reliability bull Meeting Legislative Mandates bull Enterprise Operations

vi

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 132017 Page 7

Together we have created a highly popular valued and nationally-recognized park system Our entire team remains committed to honoring our core vision to provide an enjoyable accessible safe and green park system that promotes a strong sense of community through shared spaces and experiences and is treasured by the people it serves We will continue to aggressively seek new funding opportunities and to improve work program efficiencies We remain committed to forming viable partnerships and strong relationships with our stakeholders and within our communities

The FY18 budget request will enable us to continue to provide safe clean parks keep our programs and facilities accessible and affordable and maintain the quality of life for which Montgomery County is renowned

Planning Department

The Planning Department continues to deliver its core services to improve the quality of life in Montgomery County by conserving and enhancing both natural and man-made environments for current and future generations Central to this role the Department develops master plans reviews development applications and researches analyzes and presents information to the community and public officials to aid in planning for Montgomery Countys future

In addition to the FY18 work plan that is detailed in the Departments budget section the following critical needs are proposed

o One-Time projects

bull Assessmentresearch for a Future General Plan Update

bull The Missing Middle - Design and Economics Study

bull New Roadway Functional Classification System

bull Integrated Multi-Modal GIS Network

bull Agri-Tourism Study bull University of Marylands National Center for Smart Growth partnershjp for

assistance for the assessmentresearch for a future General Plan Update Bikeways Plan UpdateMonitoring and Makeover Montgomery 4 Conference M-NCPPC 90th Anniversary Celebration

bull Transportation and Design Studies - Gaithersburg East Master Plan bull Traffic Generation from Mixed-Use Development Projects Study

bull T901s and Analyses for Increased Biennial Transportation Monitoring

bull Transportation Analysis Supporting Bicycling Planning (every two years) o On-going project

bull Placernaking Initiatives

vii

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President MontgomelY County Council FY18 Proposed Operating Budget Transmittal January 132017 PageS

Central Administrative Services (CAS)

For FY18 CAS Departments work priorities will center on continuing to meet the needs of the operating departments Critical needs are proposed as follows

bull DHRM o One career position to lead mandatory training and leadership training o One term contract position in HR to address the seasonal workforce workload o Restoration of one workyear in the HR Directors Office

bull Finance Department Increased funding for ERP Support consulting and to move the ERP to Cloud Services

bull Legal Department Restoration of funding for a Case Coordinator bull Office of Internal Audit A part-time seasonal administrative position

Commissioners Office

The role of the Commissioners Office staff is to support the Chair and Planning Board in the performance of their official duties serve as the point of contact for meeting related issues and coordinate prompt responses to issues and inquiries from agencies and the general public This also includes preparing and web posting the Boards meeting agenda producing and preserving records of official Board proceedings and managing correspondence between the Board and other agencies and the public

In addition to known operating commitments the FY18 Proposed Budget for the Commissioners Office includes some minor operating increases

Capital Budget

This transmittal also includes the Capital Budget (the second year ofthe six year Capital Improvements Program (CIP) since the County adopts the CIP every other year) Highlights of this budget can be found within the Department of Parks detail pages

TAX RATES AND LONG-TERM FISCAL SUSTAINABILITY

Beyond meeting the immediate FY18 challenges the Commission continues to strive for long-term fiscal sustainability Property taxes comprise more than 94 percent of operating revenue in the taxshysupported funds The Commission in proposing this budget is requesting a change in the property tax rates for both the Administration and the Park Funds The requested increase in the real property tax rate is 002 cent for the Administration Fund and 015 cent for the Park Fund At this level the total tax rate is still below what it was in FY07

The FY18 Proposed Budget requests a total tax rate for property tax supported funds of745 cents real property and 1863 cents personal property The breakdown by fund is as follows

bull Administration Fund 172 cents real and 430 cents personal bull Park Fund 563 cents real and 1430 cents personal and bull Advanced Land Acquisition Fund 010 cents real and 025 cents personal

viii (b

The Honorable Isiah Leggett County Executive The Honorable Roger Berliner President Montgomery County Council FY18 Proposed Operating Budget Transmittal January 13 2017 Page 9

At these tax rates the Commission will have sufficient property tax revenues to meet the FY18 proposed expenditures and reserve requirements for the Administration and Park Funds provided the tax increase is approved

IACTUAlFUNDS j ACTUAl I ACTUAl I ACTUAl IACTUAlI ACTUAl I ACTUAL IADOPTEDJADOPTED IPROPOSEDI ACTUAL J ACTUAL FY07 FYOS FY09 FY10 FYll FY12 FY13 FY14 FY1S FY16 FY17 FY18

Administration Fund

Reali 200 I 190 I 190 I 180 I 150 I 170 I 1BO I 180 I 170 I 180 I 170 I 172

personalj 500J 470 I 470 I 4S0j 3BO I 430j 450 I 450 I 425 I 450J 425 I 430

Park Fund

Reali 570 I 580 I 530 I 500 I 450 I 4BO 1 5401 5301 5601 552J 5481 563

Personall 14301 1450 I 1320 I 1250 I 1120 I 1200 I 1350 I 1325 1400 13BO 1370 I 140B

Advance Land Acquisition Fund

RealI 010 010 I 010 I 010 I 010 I 010 I 010 0101 010 I 010 I 010 I 010

Personal 030 I 0301 030 I 030j 030 I 030 J 030 I 025 I 0251 02Sj 025 I 025

Total TaK Rates (Cents)

Real[ 7BO I 7S0 I 730 I 690 I 610 I 660 I 7301 720J 7AOI 7421 7281 745

Personal[ 1960 I 1950 I 1820 I 1730 I 1530 I 1660 I 1830 I 1800 I 1850 I IB5S I 1820 I 1863

MONTGOMERY COUNTY PROPERTY TAX RATES (Cents per $100 of assessed value)

CONCLUSION

The Proposed 2018 Budget is respectfully submitted for your consideration In this document we are proposing a budget that not only moves us forward incrementally but allows us to address several critical needs and previously scaled back parks maintenance We continue to explore potential collaborative efforts across departments and counties in our effort to provide efficient effective quality service while maintaining our fiscal responsibility and commitment to the community we serve

We continue to strive to find new ways to save taxpayer dollars while providing quality service and achieving progress in our many areas offoeus We look forward to working with you and your staffs on this budget Working together we will do everything in our power to ensure that taxpayer dollars are invested wisely in our collective future

Respectfully Submitted ~----~-

clt~--

ca~A~erson Chair

ix

Marylmiddotand-National Capital Park and Planning Commission

I Mission Statement The Maryland-National Capital Park and Planning Commission (M-NCPPC) in Montgomery County manages physical growth and plans communities protects and stewards natural cultural and historical resources and provides leisure and recreational experiences

I Budget Overview The M-NCPPC was established by the General Assembly of Maryland in 1927 As a bi-county agency the Commission is a corporate body of and an agency created by the State ofMaryland The Commission operates in each county through a Planning Board and in Montgomery County a Park Commission Five board members appointed by the County Council serve as the Montgomery County members of the Commission The Planning Board exercises policy oversight to the Commissioners Office the Department of Parks the Planning Department and Central Administrative Services

On January 15 each year M-NCPPC submits to the County Council and the County Executive the M-NCPPC proposed budget for the upcoming fiscal year That document is a statement ofmission and goals justification of resources requested description ofwork items accomplished in the prior fiscal year and a source of important statistical and historical data The M-NCPPC proposed budget can be obtained by contacting the M-NCPPC Budget Office at 3014541731 or visiting the Commissions website at wwwmncppcorg Summary data only are included in this presentation

Tax Supported Funds The M-NCPPC tax supported Operating Budget consists of the Administration Fund the Park Fund and the Advance Land Acquisition (ALA) Debt Service Fund The Administration Fund supports the Commissioners Office the Montgomery County funded portion of the Central Administrative Services (CAS) offices and the Planning Department The Administration Fund is supported by the Regional District Tax which includes Montgomery County less the municipalities ofBamesville Brookeville Gaithersburg Laytonsville Poolesville Rockville and Washington Grove

The Park Fund supports the activities of the Department of Parks and Park Debt Service The Park Fund is supported by the Metropolitan District Tax whose taxing area is identical to the Regional District

The Advance Land Acquisition (ALA) Debt Service Fund supports the payment of debt service on bonds issued to purchase land for a variety ofpublic purposes The Advance Land Acquisition Debt Service Fund has a countywide taxing area

Non-Tax Supported Funds There are three non-tax supported funds within the M-NCPPC that are financed and operated in a manner similar to private enterprise These self-supporting operations are the Enterprise Fund the Property Management Fund and the Special Revenue Fund

Grants are extracted from the tax supported portion of the fund displays and displayed in the Grant Fund The Grant Fund as displayed consists ofgrants from the Park and Administration Funds

Special Revenue Funds are used to account for the proceeds from specific revenue sources that are legally restricted to expenditures for J)ecific purposes The budgets are associated with Planning and Parks operations throughout the Commission

Spending Affordability Guidelines In February 2017 the Council approved FY18 Spending Affordability Guidelines (SAG) of $120800000 for the tax-supported funds of the

MarylandmiddotNational Capital Park and Planning Commission Agency Summaries 12middot1