Park district utilizes BRG for budget efficiencies

Overview

A large community services district (CSD) contacted BRG about conducting a reserve study for approximately 18 parks, a lighting district, and several facilities, including a community recreation building with a gymnasium, tennis courts and an Olympic size swimming pool. (They found us through the Community Association's Institute!) The controller explained how they have been carrying the capital reserve obligations on the CSD's balance sheet as a depreciable item.

Major challenge

While carrying the reserve liability, as a depreciable item on the balance sheet is useful for reporting purposes, it does not lend itself to long range strategic planning. By switching to a reserve fund approach, backed up by a professionally conducted reserve study, the CSD leadership would be able to budget appropriately for the long-term needs of the district. Additionally, with all of the separate facilities, the CSD wanted to see the reserve study organized by geographic location.

Solution

BRG worked with CSD staff to perform an exhaustive on site review of all of the major components the district maintains. With our specialized software, we were able to organize the study so that every park and facility was arranged by location, so the CSD leadership could easily find all of the reserve component data. The CSD's controller was relieved to find our recommendation for the next year's reserve contribution took into account all of the downstream reserve funding requirements. Since BRG worked on the capital side of the budget, the controller could concentrate on the operating side of the budget, saving her time and resources, and causing the general manager to comment later that this one change in budgeting, and hiring BRG was one of his biggest achievements in a long career with the district.