Finance Committee Meeting

Agenda City of Ocean Shores Finance Committee Meeting Tuesday October 17, 2023 Zoom Meeting 9:00 AM Page Call to Order Financials 1. 2023 Monthly Financial Update  Presented by: Finance Director, Angela Folkers and Assistant Treasurer, Shante Nations Monthly Financial Reports 3 2. Mid-Biennium Budget Modification  Presented by: Finance Director, Angela Folkers 3. 2024 Property Taxes  Presented by: Finance Director, Angela Folkers 4-5 4. Ocean Shores Golf Course Financials - August  Presented by: Mayor, Jon Martin and Finance Director, Angela Folkers 6 5. Lodging Tax Advisory Committee Recommendations  Presented by: Finance Director, Angela Folkers City Administrator Report 6. City Administrator Report  Presented by: City Administrator, Scott Andersen Mayor Report 7. Mayor Report  Presented by: Mayor, Jon Martin Future Meeting Date November 21, 2023 at 1:00 PM Page 1 of 6 Page 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 2 of 6  Mid Biennium Review and Modifica�on Council Discussion: Council Approved Items: 1. Fire Department Exhaust Removal System Retrofit to Air Exchange – $87,764.40 Capital Improvement Fund - approved 6/12/23 2. Capital Facili�es Plan – ($50,000 General Fund) – approved 6/12/23 - $150,000 was budgeted for plan – $100,000 ARPA/$50,000 General Fund – actual cost of $98,864 will be paid with ARPA funds; will remove $50,000 expense from General Fund 3. WREM Grant for fall preven�on program - $2,042 EMS Fund – approved 9/11/23 4. Small and Rural Court Security Matching Program - $4,973 General Fund – approved 9/25/23 Pending Council items: 1. LTAC Awards City Staff Requests: 1. Add permanent Administra�ve Assistant/Records Tech posi�on – currently temporary through 12/31/23 - $106,071 General Fund - Funding will come from other vacant General Fund posi�ons totaling $149,166 (Full-Time IT Tech; Part-Time IT Tech; Permit Tech I) Other: 1. Erosion 2. Lobbyist 2. Mid-Biennium Budget Modification Presented by: Finance Director, Ange... Page 3 of 6  Ocean Shores Golf Course Report Date: 8/31/2023 1 Ocean Shores Golf Club - Balance Sheet Balance Sheet Current Month Prior Month Prior Year-End 8/31/2023 7/31/2023 12/31/2022 Current Assets Cash & Cash Equivalents Operating Cash 150,424 95,382 Petty Cash 8,774 10,163 Accounts Receivable, Net Payroll Receivables 35,505 Inventories Hard Goods 22,742 25,613 Soft Goods 27,605 26,510 Food 3,250 2,674 Total Current Assets 212,795 195,847 Total Assets $212,795 $195,847 Liabilities Accounts Payable (8,330) 20,612 Sales Tax Payable 18,037 9,141 Deferred Revenue (8,703) Gift Card Liability 505 505 Other Current Liab 34,626 19,246 Total Current Liabilities 44,838 40,801 Total Liabilities 44,838 40,801 Member's Equity 86,586 86,586 Current Year Net Income 81,372 68,461 Total Member's Equity 167,958 155,047 Total Liabilities & Member's Equity $212,796 $195,848 Generated on: 10/9/2023 4. Ocean Shores Golf Course Financials - August Presented by: Mayor, Jon... Page 4 of 6  Ocean Shores Golf Course Report Date: 8/31/2023 Ocean Shores Golf Club Month-to-Date Year-to-Date Aug - 2023 % Budget % Aug - 2022 Bud Var PY Var Aug - 2023 % Budget % Aug - 2022 Bud Var PY Var Rounds Public 1,750 0 0 0 0 1,750 1,750 5,396 0 0 0 0 5,396 5,396 Member 698 0 0 0 0 698 698 2,898 0 0 0 0 2,898 2,898 Total Rounds 2,448 0 0 0 0 2,448 2,448 8,294 0 0 0 0 8,294 8,294 Sales - Green Fees 39,759 - 90,480 - 0 (50,721) 39,759 126,221 - 324,804 - 0 (198,583) 126,221 Sales - 18 Hole - Non-Prime 16,837 - 0 - 0 16,837 16,837 54,486 - 0 - 0 54,486 54,486 Sales - Cardholder 3,003 - 0 - 0 3,003 3,003 45,455 - 0 - 0 45,455 45,455 Range, Rental & Other Golf Related 6,498 - 12,750 - 0 (6,252) 6,498 24,283 - 51,000 - 0 (26,717) 24,283 Cart Fees 15,791 - 0 - 0 15,791 15,791 55,135 - 0 - 0 55,135 55,135 Golf Fees Revenue 81,888 - 103,230 - 0 (21,342) 81,888 305,580 - 375,804 - 0 (70,224) 305,580 Sales - Soft Goods 6,505 - 16,200 - 0 (9,695) 6,505 22,186 - 58,050 - 0 (35,864) 22,186 Sales - Hard Goods 4,982 - 0 - 0 4,982 4,982 17,273 - 0 - 0 17,273 17,273 Merchandise Revenue 11,487 - 16,200 - 0 (4,714) 11,486 39,459 - 58,050 - 0 (18,591) 39,459 Sales - Food 4,524 - 7,500 - 0 (2,976) 4,524 16,210 - 26,625 - 0 (10,415) 16,210 Sales - Beer 723 - 11,250 - 0 (10,527) 723 723 - 39,938 - 0 (39,215) 723 Sales - Wine 180 - 0 - 0 180 180 180 - 0 - 0 180 180 Sales - Tobacco 0 - 0 - 0 0 0 97 - 0 - 0 97 97 Food & Beverage Revenue 5,427 - 18,750 - 0 (13,323) 5,427 17,210 - 66,563 - 0 (49,353) 17,210 TOTAL REVENUE 98,800 - 138,180 - 0 (39,380) 98,800 362,248 - 500,417 - 0 (138,169) 362,248 Expenses COS - Merchandise 7,802 67.9% 6,930 42.8% 0 (872) (7,802) (1,866) (4.7%) 27,720 47.8% 0 29,586 1,866 COS - Food 2,865 63.3% 3,000 40.0% 0 135 (2,865) 7,000 43.2% 10,650 40.0% 0 3,650 (7,000) COS - Beer 875 121.0% 4,500 40.0% 0 3,625 (875) 875 121.0% 15,975 40.0% 0 15,100 (875) COS - Wine 122 68.2% 0 - 0 (122) (122) 122 68.2% 0 - 0 (122) (122) COS - Other Food & Beverage 425 - 0 - 0 (425) (425) 558 - 0 - 0 (558) (558) Cost of Sales 12,089 12.2% 14,430 10.4% 0 2,341 (12,089) 6,689 1.8% 54,345 10.9% 0 47,656 (6,689) Gross Margin 86,711 87.8% 123,750 89.6% 0 (37,039) 86,711 355,559 98.2% 446,072 89.1% 0 (90,513) 355,559 Salaries & Wages 30,716 31.1% 46,596 33.7% 0 15,880 (30,716) 123,882 34.2% 185,014 37.0% 0 61,132 (123,882) Payroll Taxes 3,234 3.3% 4,573 3.3% 0 1,339 (3,234) 12,945 3.6% 18,145 3.6% 0 5,201 (12,945) Healthcare 1,683 1.7% 1,164 0.8% 0 (519) (1,683) 3,417 0.9% 4,656 0.9% 0 1,239 (3,417) Other Employee Benefits 241 0.2% 0 - 0 (241) (241) 399 0.1% 0 - 0 (399) (399) Total Payroll & Benefits 35,874 36.3% 52,333 37.9% 0 16,459 (35,874) 140,643 38.8% 207,815 41.5% 0 67,172 (140,643) Meals & Entertainment 0 - 0 - 0 0 0 710 0.2% 0 - 0 (710) (710) Travel 994 1.0% 600 0.4% 0 (394) (994) 7,207 2.0% 2,400 0.5% 0 (4,807) (7,207) Other Employee Related 0 - 0 - 0 0 0 0 - 1,072 0.2% 0 1,072 0 Total Employee Related 994 1.0% 600 0.4% 0 (394) (994) 7,917 2.2% 3,472 0.7% 0 (4,444) (7,916) R&M - Equipment 28 0.0% 350 0.3% 0 322 (28) 4,883 1.3% 1,400 0.3% 0 (3,483) (4,883) R&M - Building 0 - 1,450 1.0% 0 1,450 0 0 - 5,920 1.2% 0 5,920 0 Sod 0 - 0 - 0 0 0 0 - 225 0.0% 0 225 0 Sand & Gravel 0 - 1,000 0.7% 0 1,000 0 1,829 0.5% 4,913 1.0% 0 3,084 (1,829) Seed & Mulch 0 - 0 - 0 0 0 0 - 500 0.1% 0 500 0 Landscaping 0 - 82 0.1% 0 82 0 0 - 700 0.1% 0 700 0 Gas, Diesel, Oil & Lubricants 1,664 1.7% 2,413 1.7% 0 749 (1,664) 7,707 2.1% 9,570 1.9% 0 1,863 (7,707) Other Maintenance 83 0.1% 636 0.5% 0 553 (83) 184 0.1% 2,547 0.5% 0 2,363 (184) Fertilizers 2,599 2.6% 1,982 1.4% 0 (617) (2,599) 15,247 4.2% 8,882 1.8% 0 (6,365) (15,247) Chemicals 1,601 1.6% 2,761 2.0% 0 1,160 (1,601) 1,962 0.5% 5,729 1.1% 0 3,767 (1,962) Total Repairs & Maintenance 5,975 6.0% 10,674 7.7% 0 4,699 (5,975) 31,812 8.8% 40,386 8.1% 0 8,574 (31,812) Professional Fees 660 0.7% 0 - 0 (660) (660) 3,040 0.8% 661 0.1% 0 (2,379) (3,040) Marketing & Advertising 1,067 1.1% 1,950 1.4% 0 883 (1,067) 2,866 0.8% 9,600 1.9% 0 6,734 (2,866) Computer Related 0 - 460 0.3% 0 460 0 6,498 1.8% 737 0.1% 0 (5,761) (6,498) Dues & Subscriptions 1,504 1.5% 425 0.3% 0 (1,079) (1,504) 1,504 0.4% 1,700 0.3% 0 196 (1,504) Operating Supplies 1,873 1.9% 1,969 1.4% 0 96 (1,873) 9,307 2.6% 12,350 2.5% 0 3,043 (9,307) Postage 51 0.1% 153 0.1% 0 102 (51) 118 0.0% 612 0.1% 0 494 (118) Client Relations 0 - 0 - 0 0 0 420 0.1% 0 - 0 (420) (420) Uniforms 0 - 0 - 0 0 0 98 0.0% 500 0.1% 0 402 (98) Other Operating 0 - 102 0.1% 0 102 0 6 0.0% 408 0.1% 0 402 (6) Merchant Processing Fees 3,030 3.1% 2,630 1.9% 0 (400) (3,030) 4,450 1.2% 9,614 1.9% 0 5,164 (4,450) Bank Fees 40 0.0% 151 0.1% 0 111 (40) 226 0.1% 604 0.1% 0 378 (226) Cash Short / (Over) 2 0.0% 0 - 0 (2) (2) 28 0.0% 0 - 0 (28) (28) Centralized Services 0 - 2,083 1.5% 0 2,083 0 0 - 8,333 1.7% 0 8,333 0 Total Operating Expenses 8,227 8.3% 9,923 7.2% 0 1,696 (8,228) 28,561 7.9% 45,119 9.0% 0 16,558 (28,561) Operating Profit 35,641 36.1% 50,220 36.3% 0 (14,579) 35,641 146,626 40.5% 149,280 29.8% 0 (2,653) 146,627 Electric & Gas 1,761 1.8% 0 - 0 (1,761) (1,761) 4,233 1.2% 0 - 0 (4,233) (4,233) Water 5,401 5.5% 300 0.2% 0 (5,101) (5,401) 12,828 3.5% 1,200 0.2% 0 (11,628) (12,828) Telephone & Internet Connection 3,545 3.6% 425 0.3% 0 (3,120) (3,545) 5,620 1.6% 1,700 0.3% 0 (3,920) (5,620) Other Third-party Services 294 0.3% 210 0.2% 0 (84) (294) 1,233 0.3% 840 0.2% 0 (393) (1,233) Other Utilities 463 0.5% 0 - 0 (463) (463) 810 0.2% 0 - 0 (810) (810) Total Utilities 11,464 11.6% 935 0.7% 0 (10,529) (11,464) 24,724 6.8% 3,740 0.7% 0 (20,985) (24,725) Lease Expense - Short-term & Other 0 - 500 0.4% 0 500 0 1,100 0.3% 1,000 0.2% 0 (100) (1,100) Total Leases 0 - 500 0.4% 0 500 0 1,100 0.3% 1,000 0.2% 0 (100) (1,100) Fixed Operating Expenses 11,464 11.6% 1,435 1.0% 0 (10,029) (11,464) 25,824 7.1% 4,740 0.9% 0 (21,085) (25,825) Gross Operating Profit 24,177 24.5% 48,785 35.3% 0 (24,608) 24,177 120,802 33.3% 144,540 28.9% 0 (23,738) 120,802 Fees, Permits, & Licenses 330 0.3% 0 - 0 (330) (330) 1,252 0.3% 0 - 0 (1,252) (1,252) Base Management Fees 8,703 8.8% 5,417 3.9% 0 (3,286) (8,703) 34,810 9.6% 21,667 4.3% 0 (13,143) (34,810) Other Expenses 9,033 9.1% 5,417 3.9% 0 (3,616) (9,033) 36,062 10.0% 21,667 4.3% 0 (14,395) (36,062) Net Operating Income 15,144 15.3% 43,368 31.4% 0 (28,224) 15,144 84,740 23.4% 122,873 24.6% 0 (38,133) 84,740 NET INCOME 15,144 15.3% 43,368 31.4% 0 (28,224) 15,144 84,740 23.4% 122,873 24.6% 0 (38,133) 84,740 EBITDA 15,144 15.3% 43,368 31.4% 0 (28,224) 15,144 84,740 23.4% 122,873 24.6% 0 (38,133) 84,740 4. Ocean Shores Golf Course Financials - August Presented by: Mayor, Jon... Page 5 of 6  2024 LTAC Revenue Estimate and Funding Requests 2023 2024 Beginning Fund Balance (Fund 105-Hotel/Motel Tax) $ 817,804 $ 629,811 Estimated Hotel/Motel Tax Revenue (as of 9.25.23) $ 1,400,000 $ 1,300,000 Total estimated funds available $ 2,217,804 $ 1,929,811 Convention Center Requests: CC Debt Payment to 206 Fund $ 50,000 $ - CC Operations $ 808,684 $ 638,954 CC Repairs and Maintenance Reserve $ 400,000 $ 450,000 Total Convention Center Requests $ 1,258,684 $ 1,088,954 Total Remaining $ 959,120 $ 840,857 Other Requests: Razor Clam Festival $ 10,000 $ 10,000 Sand & Sawdust $ 25,000 $ 25,000 Hog Wild $ 5,000 $ 10,000 Round Up Square Inc. $ 19,000 $ - Coastal Interpretive Center $ 150,000 $ 110,000 Grays Harbor Youth Athletics $ 10,000 $ 10,000 Olympic Culinary Loop $ 5,000 $ - Beachcombers Heritage $ 4,500 $ 7,500 VFW $ 5,000 $ - Associated Arts of Ocean Shores $ 33,000 $ 35,000 *applied for $49,000 Ocean Shores Parks and Conservation Foundation $ 35,309 $ - Ocean Shores Marketing Coalition $ - $ 80,000 Bridge League $ - $ 7,500 Too Cool Sportswear $ - $ 25,000 Accent Marketing (Artisan Faire) $ - $ 10,044 City of Ocean Shores (Public Works) $ - $ 5,319 Accent Marketing (Chili Cookoff) $ - $ 12,394 North Beach Community TV (Prowse) $ 2,500 $ - North Beach Independent Media $ 20,000 $ - North Beach Community TV (Johnston) $ 5,000 $ - Total Other Requests $ 329,309 $ 347,757 Total All Requests $ 1,587,993 $ 1,436,711 Projected Ending Fund Balance $ 629,811 $ 493,100 Ending Fund Balance Target (per Resolution No. 826) $ 192,981 Amount Remaining $ 300,119 Applications tabled for re-application of surplus funds: North Beach Community TV (Prowse) $ 2,500 $ 3,500 North Beach Independent Media $ 20,000 $ 20,000 Ocean Shores Lions Club $ - $ 33,624 Sounds for the Shores $ - $ 45,000 Applications not recommended for funding by the Committee: North Beach Community TV (Johnston) $ 5,000 $ 18,000 5. Lodging Tax Advisory Committee Recommendations Presented by: Finance ... Page 6 of 6