The “big picture” is how Matt Cleland, Metroparks Toledo’s chief financial officer/treasurer, describes the work of his department, which is constantly keeping an eye on the present while looking ahead to future budget years.
At the January 26 Metroparks board meeting, Mr. Cleland presented his 2022 financial report, outlining how park finances are directed and explaining the importance of the budget process.
Finances are allotted in accordance with Metroparks’ mission and vision statements.
The mission statement calls for the conservation of resources “by creating, developing, improving, protecting and promoting clean, safe and natural parks and open spaces for the benefit, enjoyment, education and general welfare of the public.”
The vision statement expands on that mission, seeking to be “the beacon for conservation of natural resources, diversity, equity and inclusion and the activation and promotion of spaces that enhance physical and mental health.”
“Our mission and vision statements direct our finances and, of course, Metroparks’ plans,” he said, adding, “The purpose of the financial forecast is to convert those strategic plans into numbers.”
The financial forecast looks at the prior and current years as well as future years. “An important function of the forecast is to make sure money is there for future budgets,” Mr. Cleland explained.
The forecast shows revenues and expenses each year along with a carryover balance at year’s end.
“Metroparks’ money is accounted for in funds, and each fund has a specific purpose,” he said. “Think of funds as buckets of money, each for a particular purpose.”
Those buckets include allocations for law enforcement, education, land acquisition and capital construction. The general fund bucket, which covers general operations, is the “least restricted fund,” and the only one that can transfer money to any other fund, he said.
The general fund accounts for one-third of the budget; the remainder is for capital construction, grants, donations, education and land acquisitions respectively.
Sources of revenue for each fund vary and include property taxes, intergovernmental, fines and forfeitures, service charges, sales, donations and interest income.
“Distribution of revenue changes each year as grant awards vary,” he explained.
Within each fund, money is appropriated in categories. For example, the general fund categories are salaries, fringe benefits, materials and supplies, utilities, contract services, contingencies and capital outlay.
And just as revenues vary each year due to grants, so do distribution of expenses. “Distribution of expenses can change significantly as grants and capital projects vary from year to year,” he said, noting that capital projects are Metroparks’ largest expense.
What happens at year’s end is hopefully the treasurer department’s target fund balances across all accounts. “For the general fund, that is three months’ worth of operating expenses,” Mr. Cleland explained.
“Three months represents 25 percent of the year; therefore the target is 25 percent of annual expenses,” he elaborated. “By maintaining that balance it provides security, maximizes services and shows effective use of taxpayer dollars.”
The fund balance target is critical because it controls the entire forecast and budget process, the treasurer said.
When viewing the current year’s budget, there are two rows of figures–budget and projected budget. The budget column shows how much is available to spend each year and the projected column represents a “best guess” as to how much will be spent, Mr. Cleland explained.
In the course of a normal business, there is always some budget money left, but does that mean it can be spent if under budget? “No,” he said, pointing out the financial forecast anticipates the under budget amount.
As for how the park district did in 2021, the treasurer noted that despite lower property tax collections due to the pandemic, other accounts helped make up the difference.
Fees for rentals and services were up 66 percent. Interest income rose by 13 percent and all other revenue increased 27 percent above projection. “That’s a really good outcome.”
And at the end of the year, the fund balance target of 25 percent was met. “At 27 percent, our fund balance is on target.”
In closing, Mr. Cleland said, “2021 ended as expected and like other pictures of Metroparks, the financial picture is a good one.”
To view the full report, visit metroparkstoledo.com, scroll down to contact and public information and click on publications and reports.
~Jane Maiolo
