Finance Committee Meeting

Agenda City of Ocean Shores Finance Committee Meeting Tuesday July 18, 2023 Zoom Meeting 1:00 PM Page Call to Order Financials 1. 2023 Monthly Financial Update • Presented by: Finance Director, Angela Folkers and Assistant Treasurer, Shante Nations 2-8 2. Golf Course Financial Update • Presented by: Finance Director, Angela Folkers and Councilmember, Rich Hartman Staffing 9 - 15 3. Fire Department Update • Presented by: Fire Chief, Brian Ritter and Assistant Fire Chief, Michael Mandella Mayor Report Adjourn _________________________________________________________ Public Notice: • Persons requiring auxiliary aids or special arrangements in order to participate in meetings should call 360.940.7498 at least two business days prior to the scheduled meeting. Page 1 of 15  Ocean Shores Golf Course Report Date: 6/30/2023 1 Ocean Shores Golf Club - Balance Sheet Balance Sheet Current Month Prior Month Prior Year-End 6/30/2023 5/31/2023 12/31/2022 Current Assets Cash & Cash Equivalents Operating Cash 100,961 76,532 Petty Cash 10,571 8,571 Accounts Receivable, Net Inventories Total Current Assets 111,532 85,103 Total Assets $111,532 $85,103 Liabilities Accounts Payable 11,363 24,309 Sales Tax Payable 14,229 7,181 Gift Card Liability 505 250 Other Current Liab 8,940 (1,647) Total Current Liabilities 35,037 30,093 Other Long-Term Liabilities (8,701) Total Liabilities 35,037 21,392 Member's Equity 50,000 Current Year Net Income 26,494 63,711 Total Member's Equity 76,494 63,711 Total Liabilities & Member's Equity $111,531 $85,103 Generated on: 7/10/2023 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 2 of 15  Ocean Shores Golf Course Ocean Shores Golf Club Year-to-Date Jun - 2023 % Budget % Jun - 2022 Rounds Rounds 3,317 0 0 0 0 Total Rounds 3,317 0 0 0 0 Sales - Green Fees 42,193 - 137,720 - 0 Sales - 18 Hole - Non-Prime 21,537 - 0 - 0 Sales - Cardholder 38,995 - 0 - 0 Range, Rental & Other Golf Related 9,844 - 25,500 - 0 Cart Fees 21,674 - 0 - 0 Golf Fees Revenue 134,243 - 163,220 - 0 Sales - Soft Goods 9,368 - 24,600 - 0 Sales - Hard Goods 7,148 - 0 - 0 Merchandise Revenue 16,516 - 24,600 - 0 Sales - Food 6,138 - 11,250 - 0 Sales - Beer 0 - 16,875 - 0 Sales - Tobacco 97 - 0 - 0 Food & Beverage Revenue 6,235 - 28,125 - 0 TOTAL REVENUE 156,994 - 215,945 - 0 Expenses COS - Merchandise 1,724 10.4% 13,860 56.3% 0 COS - Food 1,195 19.5% 4,500 40.0% 0 COS - Beer 0 - 6,750 40.0% 0 COS - Other Food & Beverage 133 - 0 - 0 Cost of Sales 3,052 1.9% 25,110 11.6% 0 Gross Margin 153,942 98.1% 190,835 88.4% 0 Salaries & Wages 62,659 39.9% 91,822 42.5% 0 Payroll Taxes 6,565 4.2% 9,002 4.2% 0 Healthcare 598 0.4% 2,328 1.1% 0 Other Employee Benefits 56 0.0% 0 - 0 Total Payroll & Benefits 69,878 44.5% 103,152 47.8% 0 Meals & Entertainment 710 0.5% 0 - 0 Travel 4,766 3.0% 1,200 0.6% 0 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 3 of 15  Report Date: 6/30/2023 r-to-Date Bud Var PY Var 3,317 3,317 3,317 3,317 (95,527) 42,193 21,537 21,537 38,995 38,995 (15,656) 9,844 21,674 21,674 (28,977) 134,243 (15,232) 9,368 7,148 7,148 (8,084) 16,516 (5,112) 6,138 (16,875) 0 97 97 (21,890) 6,235 (58,951) 156,994 12,136 (1,724) 3,305 (1,195) 6,750 0 (133) (133) 22,057 (3,053) (36,893) 153,942 29,163 (62,659) 2,437 (6,565) 1,730 (598) (56) (56) 33,275 (69,877) (710) (710) (3,566) (4,766) 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 4 of 15  Year-to-Date Jun - 2023 % Budget % Jun - 2022 Other Employee Related 0 - 1,072 0.5% 0 Total Employee Related 5,476 3.5% 2,272 1.1% 0 R&M - Equipment 4,529 2.9% 700 0.3% 0 R&M - Building 0 - 2,900 1.3% 0 Sod 0 - 225 0.1% 0 Sand & Gravel 1,829 1.2% 2,413 1.1% 0 Seed & Mulch 0 - 500 0.2% 0 Landscaping 0 - 576 0.3% 0 Gas, Diesel, Oil & Lubricants 2,004 1.3% 4,706 2.2% 0 Fertilizers 5,502 3.5% 4,398 2.0% 0 Chemicals 17 0.0% 1,000 0.5% 0 Total Repairs & Maintenance 13,881 8.8% 17,418 8.1% 0 Professional Fees 0 - 661 0.3% 0 Marketing & Advertising 939 0.6% 4,200 1.9% 0 Computer Related 6,088 3.9% 25 0.0% 0 Dues & Subscriptions 0 - 850 0.4% 0 Operating Supplies 4,371 2.8% 8,662 4.0% 0 Postage 14 0.0% 306 0.1% 0 Client Relations 420 0.3% 0 - 0 Uniforms 98 0.1% 500 0.2% 0 Other Operating 6 0.0% 204 0.1% 0 Merchant Processing Fees 1,421 0.9% 4,189 1.9% 0 Bank Fees 30 0.0% 302 0.1% 0 Cash Short / (Over) (69) (0.0%) 0 - 0 Centralized Services 0 - 4,167 1.9% 0 Total Operating Expenses 13,318 8.5% 24,066 11.1% 0 Operating Profit 51,389 32.7% 43,927 20.3% 0 Electric & Gas 1,617 1.0% 0 - 0 Water 2,348 1.5% 600 0.3% 0 Telephone & Internet Connection 1,936 1.2% 850 0.4% 0 Other Third-party Services 644 0.4% 420 0.2% 0 Total Utilities 6,545 4.2% 1,870 0.9% 0 Lease Expense - Short-term & Other 0 - 500 0.2% 0 Total Leases 0 - 500 0.2% 0 Fixed Operating Expenses 6,545 4.2% 2,370 1.1% 0 Gross Operating Profit 44,844 28.6% 41,557 19.2% 0 Fees, Permits, & Licenses 872 0.6% 0 - 0 Base Management Fees 17,405 11.1% 10,833 5.0% 0 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 5 of 15 r-to-Date Bud Var PY Var 1,072 0 (3,203) (5,475) (3,829) (4,529) 2,900 0 225 0 584 (1,829) 500 0 576 0 2,702 (2,004) (1,104) (5,502) 983 (17) 3,537 (13,881) 661 0 3,261 (939) (6,063) (6,088) 850 0 4,291 (4,371) 292 (14) (420) (420) 402 (98) 198 (6) 2,768 (1,421) 272 (30) 69 69 4,167 0 10,748 (13,318) 7,463 51,390 (1,617) (1,617) (1,748) (2,348) (1,086) (1,936) (224) (644) (4,675) (6,545) 500 0 500 0 (4,175) (6,545) 3,288 44,845 (872) (872) (6,572) (17,405) 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 6 of 15  Year-to-Date Jun - 2023 % Budget % Jun - 2022 Other Expenses 18,277 11.6% 10,833 5.0% 0 Net Operating Income 26,567 16.9% 30,724 14.2% 0 NET INCOME 26,567 16.9% 30,724 14.2% 0 EBITDA 26,567 16.9% 30,724 14.2% 0 Generated on: 7/10/2023 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 7 of 15 r-to-Date Bud Var PY Var (7,444) (18,277) (4,156) 26,568 (4,156) 26,568 (4,156) 26,568 2. Golf Course Financial Update Presented by: Finance Director, Angela F... Page 8 of 15  OSFD HIRING STRATEGY 4 FTE’S Authorized for 2023 2 FTE’S Authorized for 2024 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... Page 9 of 15 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... BOTTOM LINE UP FRONT • Hire the 2 new/additional FF/Medic positions slated for January 2024 NOW • Use the ~ 150K of unspent salaries (20.5 months) from the (1) FF/EMT and (1) FF/Medic we lost in early 2023 • The COST of hiring the 2024 FTE’s now will be ~ 49K • Resulting in an underspent salary budget line item of ~ 62K as shown in the following slides Page 10 of 15 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... HOW IT WORKS MATHEMATICALLY The SAVINGS First • 2023 Salary Underspending • 1 FF/EMT left after working 1.5 months in ‘23 • Pay rate was 6141/mo, or 73,692/yr = 64,481 unspent • 1 FF/Medic left after 2 months in ‘23 • Pay rate was 8585/mo, or 103,020/yr = 85,850 unspent • Total unspent salaries of ~ 150K for 2023 • FD was authorized to hire an ADDITIONAL 2 FTE’s in January ‘23 • Due to a lack of interested and qualified candidates, hiring had been delayed • We now have an eligibility list certified by the Civil Service Commission • Soonest start date estimated to be September 5th • The unspent (18 months) salaries caused by a hiring delay is 114,600 ( assuming September 5 hire date of one FF/PM lateral step 4 and one FF/EMT entry level) • For a combined unspent salary salaries of 264,600 Page 11 of 15 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... COSTS INCURRED • What will it cost to hire the 2 FF/EMT’s slated for 2024 now? • 2 FF/EMT’s would be on payroll for 4 months in ’23 • At a pay rate of step 1 (2 x 6161/month x 4 months = ~49K • Use ~ 49K from the unspent salaries to cover ( i.e., 4 months of pay vs 12 months) Page 12 of 15 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... Hire 2 FTE's Authorized for 2024 Now Unspent Salaries 2023 Overall Budget Impact Unspent Salaries Cost Lost 1 FF/EMT 64400 0 Lost 1 FF/PM 85800 0 Replace FF/PM (lateral step 4) 32800 Replace FF/EMT (lateral step 4) 28450 Open Spot (delayed in hiring) FF/PM Lateral step 4 65600 32850 Open Spot (delayed in hiring) FF/EMT entry level 49000 25000 Total 264800 119100 145700 **OT costs caused by having been short-staffed (384 hours ~23K) 23000 **OT costs having been short-staffed and S/L was cause (~ one-half the sick leave in that period for 11K) 11000 Hire the 2 FTE's authorized for 2024 Now 2 Entry Level FF/EMT's) for 4 months 6141/MO X 4 MO X 2 FTE's 49128 Budget Impact 264800 202228 62572 Page 13 of 15 ** This OT could have been saved had we hired in early 2023 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... ADDITIONAL COSTS REGARDLESS OF WHEN WE HIRE • Our 3-week orientation may necessitate: • Lodging • Meal per-diem • Bunker Gear and other Personal Protective Gear • Portable Radios • Uniforms • Overtime to cover minimum staffing on shift until new FTE’s are “Certified” (approx. 10 shifts each per two medics = ~ 20K) Page 14 of 15  QUESTIONS? 3. Fire Department Update Presented by: Fire Chief, Brian Ritter and Ass... Page 15 of 15