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American River Messenger

FORPD Mid-Year Budget on Track

Mar 19, 2024 09:49AM ● By Shaunna Boyd

FAIR OAKS, CA (MPG) - The Fair Oaks Recreation and Park District (FORPD) Board of Directors considered updated bylaws at its February meeting for the Fair Oaks Recreation Foundation, a nonprofit fundraising entity that supports recreation, arts and entertainment within the district. The directors also serve as the board members for the foundation but they were advised that it should instead be controlled by a separate entity.

The updated bylaws, if approved, would allow for the dissolution of the foundation and simultaneous transfer of assets to the Fair Oaks Foundation for Leisure and the Arts (FOFLA), an existing nonprofit with a mission similar to that of the Foundation.

Vice-Chair Delinda Tamagni said she wants the Board to review the Fair Oaks Foundation for Leisure and the Arts’ annual financial reports prior to the transfer of assets to see “how their funds are managed.”

Director Darren Mounts agreed and suggested that they should look at a few years of reports “to see those ups and downs, what goes in and out; that way we have at least a benchmark going forward.”

The main charitable actions that would move to the Fair Oaks Foundation for Leisure and the Arts are the administration of various scholarships, and Board Chair Ralph Carhart wondered whether the Fair Oaks Foundation for Leisure and the Arts would legally be able to abandon those scholarships in the future.

Fair Oaks Recreation and Park District Administrator Mike Aho explained that administering those scholarships aligns with the Fair Oaks Foundation for Leisure and the Arts’s mission, and they will also be required to abide by their updated bylaws, which will include directives to administer the scholarships from restricted accounts. And the Fair Oaks Recreation and Park District directors will have up to two seats on the new the Fair Oaks Foundation for Leisure and the Arts Board, so they will maintain a voice in future actions.

Aho said he will get the Fair Oaks Foundation for Leisure and the Arts’ financial documents for the board to review and he requested that the board authorize up to $2,000 for the district’s attorneys to review the foundation’s updated bylaws ahead of the directors’ final vote on this matter at a future meeting.

The directors voted to approve the funding for the legal review of the foundation’s bylaws.

Next, the Measure J Bond Oversight Committee’s (BOC) annual report was presented to the board by Bond Oversight Committee member Kim Sarkovich. She said that the Bond Oversight Committee reviewed Measure J expenditures from last year and found that all were “in compliance with the bond covenants.”

The board also heard a mid-year budget review for the 2023-2024 fiscal year, looking at both expenditures and revenues.

On the expenditures side, $2.27 million was budgeted for salaries and benefits and 56% has been expended so far ($1.29 million).  For services and supplies, $1.49 million was budgeted and 53% has been expended ($790,243). All district expenses are on track for this time of year, with no savings expected.

For revenue, the budget includes $743,229 expected from special assessments from Gum Ranch Park, Fair Oaks Park, Phoenix Fields, and lighting and landscape districts, and 58% has been collected ($429,702). Property taxes are budgeted at $2.25 million and 56% has been collected ($1.26 million). Revenue from use of money and property (which includes interest income, facility rentals, and cell tower leases) was budgeted at $180,000 and 55% has been collected ($100,356). Program revenue was budgeted at $467,870 and 35% has been collected ($161,679), which is in line with the budget projections since most of the district’s major programs and events are offered in the spring and summer.

Board Chair Carhart said the mid-year budget review had “no big surprises,” which is exactly what is wanted in a budget, and the report was officially received and filed. 

The board next considered a change order for services from the district’s architects, WMB, for work related to the Veteran’s Memorial Amphitheatre and the Community Clubhouse.

“Our project obviously has been delayed,” Aho said, and “we continuously need architectural services throughout this process.” Aho said WMB provides valuable services to the district for what has turned out to be a very complex construction project: “They attend the construction meetings. They deal with any issues that come up through inspections that require changes in the design, or the implementation of that design. They’ve been doing an incredible job.”

The change order requested amounts not to exceed $36,000 for the clubhouse and $59,800 for the amphitheatre, for a total request of $95,800 for an 11-month extension for their services. The actual amount will be determined based on billable hours but the total cost will not exceed $95,800.

Aho said that the contingency costs built into the initial contract have already been expended on unanticipated costs that cropped up during project, such as water intrusion issues in the Clubhouse.

The board voted to approve the change order to extend WMB’s services.