Minneapolis Park Board Adopts 2021 Budget

Budget Addresses Revenue Losses due to COVID-19, Protects Park Assets, Maintains Focus on Youth Services

MINNEAPOLIS PARK BOARD ADOPTS 2021 BUDGET THAT ADDRESSES REVENUE LOSSES DUE TO COVID-19, PROTECTS PARK ASSETS AND MAINTAINS FOCUS ON YOUTH SERVICES

At their December 9 meeting, the Board of Commissioners adopted the 2021 Budget for the Minneapolis Park and Recreation Board (MPRB) that addresses the revenue shortfall caused by COVID-19, protects park assets, including physical infrastructure and park amenities, and continues the MPRB’s focus on its most important priority: the youth of the city.

The 2021 Budget was developed using the budget framework adopted by the Board of Commissioners on June 3, 2020. The budget protects the gains that have been made in investing in youth; focuses on racial equity and economic equity; protects capital investment through the 20 Year Neighborhood Park Plan (NPP20); identifies employee engagement to ensure that employee’s voices are heard; and recognizes that program and service levels with corresponding staffing levels will need to be redefined.

“To say 2020 has been challenging is an understatement,” said Superintendent Al Bangoura. “From the COVID-19 pandemic, the killing of George Floyd, peaceful protests and civil unrest, to an economic recession with unemployment levels worse than the great depression, all which contributed to the rise in the number of the most vulnerable of our city experiencing homelessness, many of whom sought temporary refuge on parkland, 2020 has been a year like no other. As it has in other times of crisis and uncertainly, parks and opens spaces have played a critical role in the lives of so many seeking a place to go, to recreate and to gather.”

Bangoura noted that the adopted 2021 budget addresses the financial challenges of 2020 and 2021 and reflects the Park Board’s continued commitment to providing park spaces and important park services to all the community.

Several organizational changes being implemented by Superintendent Bangoura in the fourth quarter of 2020, many based on employee ideas and suggestions, are reflected in the budget. They include: a modified recreation division structure to strengthen the focus on youth programming; realigning resources to create a new community support services department that focuses on safety strategies and provides support, intervention, and de-escalation to community and staff in parks; reallocating resources for grant and donation administration; and combining cross departmental staff who work on data and analytics into one team. The proposed budget also protects the $10.5 million allocation for the 20 Year Neighborhood Park Plan (NPP20) and the use of criteria-based systems and the racial equity lens for budget allocations and decisions. Racial equity work continues to be demonstrated in the Superintendent’s Recommended 2021 Budget in five distinct areas: 2021 department budget goals; neighborhood park capital improvement and rehabilitation funding; regional park capital improvement funding; recreation center funding; and 2021 budget adjustments.

The 2021 Budget was developed under the constraints of the continued impacts of the pandemic and the maximum tax levies authorized by the Minneapolis Board of Estimate and Taxation which did not provide current service level funding for MPRB operations. The recommended budget includes a proposed 1.18 percent property tax levy increase that includes a 1.9 percent property tax increase for the General Fund and a 24.6 percent property tax levy decrease for the final year of the Tree Preservation and Reforestation Levy to respond to emerald ash borer and urban tree canopy loss due to storms.  The recommended budget proposes utilizing the maximum 1.18 percent tax levy approved by the Board of Estimate and Taxation. It is estimated that the proposed 1.18 percent property tax increase will not result in an increase in property taxes for the owner of a median-value $271,000 house due to growth in the tax base.

The 2021 Budget totals $128.7 million, including $85.9 million for the general operating fund, $12.2 million for the enterprise fund, $2.8 million for the special revenue fund and $26.1 million for capital project funding.

This budget protects the MPRB’s commitment to strategic long-term planning. It also protects the 2018-2022 Strategic Directions and Performance Goals adopted by the Board of Commissioners in April 2018 and 2019 respectively. The Strategic Direction guides system-wide operations and initiatives through 2022 through the identification of four priorities: invest in youth; be financially sustainable; protect the environment; and engage communities’ power.

Invest in Youth

The budget protects and moves forward the gains in recreation funding for youth that were made in 2020 prior to COVID-19, by maintaining the same level of funding in 2021 as was made in 2020. There were reductions in all divisional budgets except the youth funding allocated within those divisions.  The budget supports organizational structure changes being implemented by the Superintendent in the fourth quarter of 2020 to deliver meaningful, engaging, cutting edge programming.

Financial Sustainability

COVID-19 and the subsequent economic recession have caused great financial impact to the MPRB. During the pandemic and subsequent economic recession, the Board provided the framework and guidance that were key in making budget decisions for the 2021 recommended budget. Due to the economic crisis facing Minneapolis property owners, the property tax levy does not fully support the current service level budget. In order to protect youth investment and environmental initiatives, this budget includes increases in established fees and charges in areas that don’t impact youth; the addition of new fees and charges in areas that don’t impact youth; organizational structure changes implemented in the fourth quarter of 2020; and service reductions within every MPRB division. Position eliminations in the proposed budget focus on current vacancies and the least amount of impact to direct services to Minneapolis residents.

Protect the Environment

The MPRB remains committed to decreasing its carbon footprint, increase usage of electric vehicles and reductions in pesticide usage. The proposed budget continues these efforts by the further reduction of greenhouse gas emissions using priorities and recommendations from the first completed carbon footprint analysis, and the implementation of formal criteria for evaluating new equipment purchases and replacements to reduce fuel consumption, minimize pollution and emissions, and improve operations. The budget also supports the installation of two community gardens focused in areas of greatest need, a diagnostic study of Powderhorn Lake, and enhancing the review of Forestry specifications for private development in the City to ensure that tree preservation techniques are implemented.

Engage Communities’ Power

The MPRB serves the community and people of Minneapolis, so it is paramount to its success that the MPRB builds on the strong and unique connections that Minneapolis communities have to the park system. In 2020, the Board of Commissioners has made two things clear: the desire to rethink policing in parks and the importance to mitigate impacts on the most economically vulnerable of our community. To help achieve these goals, the Superintendent is reallocating existing resources to form a new Community Support Services Department in the fourth quarter of 2020 and his proposed 2021 budget supports this new initiative. This new department includes staff with the skills and talents necessary to support community, staff, and park patrons in challenging situations and complex problems.  Department members will work collaboratively with community members, community partner agencies, park users, stakeholders, staff, and Park Police to help solve park safety problems, complementing our unique approach to community policing of parks. The 2021 recommended budget provides additional resources for this new department through the elimination of one police officer. The budget supports other organizational changes being implemented in 2020 to strengthen the bridge between the MPRB and the community, including stronger alignment of ADA, gender inclusion and racial equity work with human resources to ensure it is imbedded in all of MPRB’s work to recruit, develop and retain staff.

“This year has re-shaped our lives,” said Bangoura. “Our employees have amazed me with their ability to persevere, adjust, transform, innovate and support this organization, doing great work, while executing our mission and maintaining our values. I remain extremely proud of our park system.”

The final budget and related documents are available for viewing at https://www.minneapolisparks.org/budget.

Financial and Service Challenges:

There are multiple financial and services challenges impacting the MPRB:

• The Coronavirus pandemic (COVID-19). The MPRB’s priority is the health and safety of its park visitors and employees. It has enacted necessary changes in service levels to comply with the State of Minnesota executive orders and public health guidelines. In 2020, buildings were closed and programs and events cancelled, resulting in a $1 – 2 million loss in revenue each month. Some programs and activities have been resumed in a modified or virtual manner and some buildings have re-opened for limited public use by youth. Based on current predictions of the length of this pandemic, programs and services may be impacted well into 2021.
• System growth and service levels. The MPRB is experiencing growth in both the regional and neighborhood park systems. As parks and amenities are added to new residential areas that were traditionally non-residential, in support of the City’s growth patterns and other development, improvements and expansion occurs within the system and service delivery models need to be analyzed, adjusted or changed to support the needs of these areas.
• Capital investment needs. The MPRB has many capital needs throughout the system including RiverFirst development and acquisition, reinvesting in operation facilities, underground infrastructure and utilities, Enterprise Fund capital investment, and support for the Land acquisition fund.

• Pesticide free parks analysis. Staff continue working both to reduce the use of landscape pesticide products and introduce organic land management practices on Minneapolis park land. Staff must also continue to comply with the Minnesota Noxious Weed Law which aims to protect the state from ecological and economic impacts created by the introduction and spread of noxious weeds.
• Unsheltered people in parks. In 2020 the MPRB dedicated significant resources to temporary encampments for individuals experiencing homelessness within parks through resolution 2020-267. This included creating a temporary encampment permit that resulted in 15 permitted encampments. During this time staffing resources in Community Outreach, Youth Development, Park Police, Asset Management and Administration were dedicated to this work. The impacts of homelessness are a growing challenge in the park system and Minneapolis.

Other key financial challenges also continue: the impact of the City of Minneapolis $15 minimum wage ordinance, inflationary increases especially in construction costs, and the continued work to stabilize the Enterprise Fund.

Departmental Initiatives and changes for 2021

The adopted MPRB 2021 Budget includes the following changes and new initiatives recommended by Superintendent Bangoura in October or proposed by commissioners in November and December. For full details, view 2021 budget documents at www.minneapolisparks.org/budget.

• Asset Management – supports the organizational changes being implemented by the Superintendent in the fourth quarter of 2020 including the transfer of two management analyst positions to Strategic Planning and the Data Analytic and Response team; addition of a Horticulture Crewleader position; maintain all filled frontline positions; elimination of one vacant carpenter apprentice position and; reductions in services with the elimination of permit electrician funding, the reduction in seasonal parkkeeper and seasonal mobile equipment operator hours, and the elimination of the seasonal intern position; reduction in overtime hours.
• Athletic Programs, Aquatics, Golf & Ice Arenas – increases in adult league fees based on market rate; continuation of the Phillips Pool use agreement with Minneapolis Public Schools through 2024; increase to overall golf revenues due to the increased rounds played and targeted golf fee increases; and addition of one seasonal parkkeeper for each of the 18-hole courses.
• Communications and Marketing – reduction in part-time hours for the Web Assistant, Communications Assistant, and Graphic Designer positions; slight decreases in other expenditures.
• Community Support Services – supports organizational changes being implemented by the Superintendent in the fourth quarter of 2020 that will establish this new department; also includes enhanced services provided by the elimination of a park police officer and the transfer of that funding to this new department.
• Customer Service – supports organizational changes being implemented by the Superintendent in the fourth quarter of 2020 including realigning existing resources to establish the Program Advancement position; enhancing the Ambassador program utilizing part time staffing and volunteers; and new overhead fee charged to Special Revenue Fund events for the full-time staff that oversee those events. Use and Events Permitting will see a decrease in revenue due to the impact of not utilizing the Minneapolis Police Department support of extra duty shifts required for event execution. It will also implement a new Entrepreneurship Program as an opportunity for small, local vendors to sell their goods in a controlled environment.
• Design and Project Management – elimination of the Design Project Manager and Construction Project Manager positions; slight decrease in other expenditures.
• Deputy Superintendent’s Office – reduction in contractual services.
• Environmental Management – supports transition of Teen Teamworks from the Recreation Division to the Environmental Management Department; reduction in part-time and seasonal hours including the Program Aide, Seasonal Park Maintenance Worker, Naturalist, AIS Educator and Seasonal Mobile Equipment Operator positions; slight reduction in other expenses.
• Finance – elimination of the Financial & Performance Analyst position.
• Forestry – addition of the Forestry Preservation Coordinator position; elimination of the Forestry Outreach Coordinator position; elimination of part-time clerical hours; continuation of the Tree Preservation and & Reforestation Levy for the final year of the eight year plan to address emerald ash borer and replant trees lost in storms .
• Human Resources – supports the organizational changes being implemented by the Superintendent in the fourth quarter of 2020 including the alignment of ADA, inclusion, racial equity and trauma coordination with human resources to ensure it is imbedded in all of the MPRB’s work; elimination of a Human Resources Associate position; reclassification of a manager position to a coordinator position for equity, inclusion and accessibility.
• Information Technology Services – supports the organizational changes being implemented by the Superintendent in the fourth quarter of 2020 including the transfer of the IT Database & GIS Analyst position to the Strategic Planning Department and the Data Analytics and Response team; extends the useful lifecycles of computers; reduces other capital purchases; and uses equipment reserves to improve camera systems and door access at the southside operations center and headquarters buildings.
• Park Police –- supports the organizational changes being implemented by the Superintendent in the fourth quarter of 2020 including the transfer of the Youth Violence Prevention Coordinator to the new Community Support Services Department and elimination of a police officer position to provide additional support to this new department.

• Youth and Recreation Center Programs – supports organizational changes being implemented by the Superintendent in the fourth quarter of 2020 that brings youth programming and recreation centers together to make sure that youth are a primary focus and seamlessly integrated into Youth and Recreation Center Programs; protects youth funding and maintains the 2020 funding levels.
• Strategic Planning – supports the organization changes being implemented by the Superintendent in the fourth quarter of 2020 which establishes the Data Analytics and Response Team by shifting already existing resources from Asset Management and Information Technology Services to the Strategic Planning Department; identifying at least one project or package of projects for the bonding bill to accelerate implementation of resiliency projects for parkland being impacted by climate change; slight decrease in other expenses.
• Superintendent’s Office – supports the organizational being implemented by the Superintendent in the fourth quarter of 2020 including realigning existing resources to establish the Grant and Donation Administrator position.