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Item 5B. 2027 General Fund Budget Discussion

Superintendent's Recommendation:

NO ACTION REQUIRED; THIS ITEM IS FOR INFORMATION AND DISCUSSION.


Prepared By: Shaan Hamilton, Chief Financial Officer

Background:

The Park District is facing multiple challenges in 2027 to align its mission, strategic goals, and core operations with the resources it has available. Park use continues to grow, while operating costs continue to increase. The strategic goal of providing high quality facilities, programs, and natural resources management within current budget parameters has become more difficult as higher inflationary pressures reduce purchasing power. The ability to reallocate funds without decreasing service levels is limited as the Park District has annually reallocated resources within the budget to provide more efficient and effective services within existing funding.

The Park District uses ten operating budgets to manage the Park District’s day-to-day operations:

  • General Fund
  • Scott-Three Rivers Partnership
  • Hyland-Bush-Anderson Lakes Partnership
  • Baker Golf
  • Eagle Lake Golf
  • Glen Lake Golf
  • Parkers Lake Golf
  • Hyland Greens Golf
  • Hyland Hills Ski Area
  • Equipment Internal Services


Building the budget is a collective effort involving the Board of Commissioners, the Superintendent, and staff. Each group plays a specific role in constructing the budget and the strategic decisions that underlie it. The Board of Commissioners is responsible for approval of the budget and the goals and objectives supported by the budget. Staff will be focusing primarily on the General Fund Budget, but many of the issues will impact the other operating budgets as well.

A starting point for building the 2027 budget is an understanding of the larger economic environment and the challenges the District faces related to both revenues and expenditures. To develop a balanced 2027 operating budget, the Park District must use several levers within its decision-making control. These levers are part of a larger list of budget variables that include:

  • Expenditures
    • Personnel – foundational to this variable is the strategic goal of recruiting and retaining the highest quality employees through cost-of-living and merit increases, current labor agreements, and benefits
    • Contracted Services, such as technology maintenance agreements
    • Commodities, such as utilities and fuel costs
    • Other Charges – largely comprised of Internal Service Fund (ISF) charges, Risk Management Fund charges, and credit card fees


  • Revenues
    • Property Tax Levy
    • Park Use Fees
    • State Grants (State lottery-in-lieu-of funding and State/Metropolitan Council Operations & Maintenance funding)


The attached 2027 Budget Discussion presentation provides more background and details related to these budget levers and variables.

Relationship of Board Action to the Budget

The Park District's budget process, as shown in the table below, outlines the steps and board actions that will need to be completed over the next seven months. The table also shows the current status of each step in the process.

Relationship to the System Plan:

The Request for Action supports the following goal(s) of the System Plan:

Goal 2: Parks Matter

by ensuring the Park District's finances are properly managed and planned.

Attachments:

2027 Budget Discussion Presentation - Board Meeting 20260716.pdf

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