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  • Kevin Elliott

RARA to present budget amendments

The Rochester Avon Recreation Authority (RARA) on Monday, February 26, will present its first quarter budget amendments during a public meeting and presentation to the Rochester Hills City Council.

The presentation is the first since the council insisted on additional financial oversight of the recreational authority in December 2017, when council members were informed RARA depleted its fund balance by more than $600,000 in 2017 in order to build out its new facility at 480 E. Second Street. Those oversights included the development of a three-year budget plan; monthly financial reports from RARA to the city; the requirement of quarterly budget amendments, rather than annual amendments; and a restoration of the authority's fund balance to 20 percent of total operating expenses. The authority's fund balance was about one percent at the end of the 2017 fiscal year.

The proposed amendments to be presented at the city council meeting include decreases in total revenues of about $225,000; $157,000 in operating expenditures; and $133,000 in capital outlay expenditures. The proposed amendments would result in an increase of about $65,000 in fund balance in the first quarter.

The proposed budget amendments were prepared in coordination with the Rochester Hills finance division.

RARA generates about 75 percent of its overall budget through membership fees, programs and facility rentals. About 25 percent of its overall budget comes from tax millages levied in Rochester and Rochester Hills.

The Rochester Hills City Council meeting is 7 p.m. Monday, February 26 at Rochester Hills City Hall, 1000 Rochester Hills Drive.

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