ANNUAL BUDGET REPORT
FY2022-2023
May 11, 2022
www.mendocoastrec.org 300 S Lincoln Street, Fort Bragg, CA 95437 C.V. STARR COMMUNITY CENTER
2 The C. V. Starr Community Center (CVSCC) FY2022-2023 Annual Budget Report is prepared for the Fort Bragg City Council and Mendocino Coast Recreation & Park District (MCRPD) Board in accordance with the operating agreement between the two associated entities.
The Center is operating in accordance with the approved FY2021-2022 budget. The proposed FY2022- 2023 annual budget has been developed to provide the most realistic forecast possible, given the information available to staff at the time.
Mendocino Coast Recreation and Park District
Board of Directors and Term Expires:
Barbara Burkey, Board Chair – December 2022
Leslie Bates, Board Vice Chair – December 2022
Angela Dominguez, Board Secretary – December 2024
Bob Bushansky, Board Member – December 2022
John Huff, Board Member – December 2024
3 TABLE OF CONTENTS
Budget summary ________________________________________________ 4 Operating Revenues _____________________________________________5 General Admissions ______________________________________________________________5 Rentals ________________________________________________________________________5 Registrations____________________________________________________________________5 Merchandise ____________________________________________________________________5 Miscellaneous___________________________________________________________________5 Operating Expenses______________________________________________6 Wages and Benefits ______________________________________________________________6 Utilities ________________________________________________________________________6 Outreach _______________________________________________________________________6 Maintenance ____________________________________________________________________7 Operations _____________________________________________________________________7 Other Expenses _________________________________________________________________7 Capital Improvements ____________________________________________8 Domestic Hot Water System _______________________________________________________8 Facility Flat Roof Repair ___________________________________________________________8 Women’s Locker Room Flooring ____________________________________________________8 UV System – Leisure and Competition Pool ____________________________________________8 VFD Replacement _______________________________________________________________8 Other Revenues – C.V. Starr Enterprise Fund __________________________ 9 Sales Tax ______________________________________________________________________9 Property Tax ____________________________________________________________________9 Reserves_______________________________________________________________________9 4 BUDGET SUMMARY
5 OPERATING REVENUES
General Admissions
General admission revenue consists of user fees collected through drop-in visits, the sale of memberships and other admissions. With COVID-19 restrictions lifting and both pools now operating with all the features, we are seeing a steady growth in facility attendance. General admissions are expected to bring in $450,493.
Rentals
Rental revenue is collected for private rentals of facilities, such as birthday party room rentals or pool rentals by swim teams. The Mendocino Coast Sea Dragons Swim Team, Fort Bragg High School Swim Team, Mendocino High School Swim Team, and Title Waves Swim Team all rent lanes of the Lap Pool during weekday evenings for practice. The Center is also a popular place to have a Birthday Party.
Rentals are projected to be $50,441.
Registrations
Registration revenue is collected for registered activities, such as enrichment programs or swimming lessons. The Center has found that the community is ready to come back to registered programs. The Center offers as many enrichment programs, such as swim lessons, dance classes, and art classes as staffing allows. Programs fill very quickly once registration is open. Swim lessons have been notorious for filling just minutes after registration opens. Registrations are expected to end the year at $65,995.
Merchandise
Merchandise revenue is collected for the sale of retail items such as goggles, ear plugs, towels, and swim caps. Merchandise sales are expected to end the year at $8,889.
Miscellaneous
Miscellaneous revenue includes items such as vending machine commissions and other revenue that does not fall into any of the previous categories. Miscellaneous revenues are expected to end the year at $3,064.
6 OPERATING EXPENSES
Wages and Benefits
Wages and benefits account for the monetary compensation paid to employees, healthcare benefits, workers compensation insurance, state unemployment insurance, state employment training tax, federal insurance contribution act tax (FICA), and federal Medicare tax. The projected FY2022-2023 wages and benefits are $1,181,014.
MCRPD and CVSCC staff allocate their time following the chart below:
Utilities
Utilities include propane, electricity, water, and sewer service. The proposed FY2022-2023 budget amount for utility expense is expected to be $373,100. The cost of utilities has in some instances doubled in price. Staff and the City are currently working on minimalizing the cost of utilities.
Outreach
Outreach expenditures are for the marketing of the Center, such as advertisements in local publications brochure production, and community sponsorships. The proposed outreach expense for FY2022-2023 is $22,200.
7 Maintenance
Maintenance includes pool chemicals, repair parts, grounds keeping, tools, equipment and other maintenance related supplies and services. Like everything else, the cost pool chemicals are increasing substantially as well as other maintenance related costs. The projected maintenance expense for FY2022-2023 is $191,424.
Operations
Operations account for professional services, engineering services, bank fees, communications, janitorial supplies, insurance, laundry service, office supplies, permits, postage/shipping, program supplies, recruitment, training, and uniforms. Insurances costs are expected to rise 30% in the next fiscal year. In addition, to increase efficiency and streamline our timekeeping and payroll process, staff is working on outsourcing payroll. Staff is also currently in the process of working with the City of Fort Bragg to secure a local bank which will significantly reduce bank fees and offset the costs of the payroll service. Operation expenses for FY2022-2023 is $249,599.
Other Expenses
Other expenses include interest payments, property tax administration, LAFCO, (Local Agency Formation Commission), and COFB administration fee in the amount of $10,000. For FY2022-2023, the projected amount is $15,811.
8 CAPITAL IMPROVEMENTS
The Center currently requires an array of projects to be completed that is expected to cost $458,200.
Listed below are the capital improvements for the FY2022-2023 budget cycle. Following that is the Capital Improvement Schedule through FY2026-2027.
Domestic Hot Water System
The domestic hot water system consists of two domestic hot water boilers and a 500-gallon storage tank. Both boilers have reached their life expectancy and the storage tank is also showing signs of corrosion. The steel tank will be replaced with a stainless-steel tank to avoid this problem in the future.
The new boilers have an internal combustion chamber that should help combat corrosive issues as well. Both these improvements should provide longevity and efficiency. The domestic boilers are expected to be $67,500 each and the stainless-steel water tank $5,000 for a total of $140,000 to repair the system.
Facility Flat Roof Repair
The flat roof of the facility has been having ongoing issues with water beds. Pools of water are collecting under the membrane causing soft spots. Various patch jobs have been done but the location of the leak is unknown and not isolated to one area. The cost is estimated to be $150,000.
Women’s Locker Room Flooring
The women’s locker room floor has been chipping and losing it nonskid texture. The original floors did not have a moisture barrier. The new flooring that will be installed at the end of February will have a coat of moisture sealant applied as well as a colored textured paint to prevent slips. This should hold up longer than the last floor. The cost is expected to be $50,000.
UV System – Leisure and Competition Pool
The UV Systems are responsible for disinfecting the pool water. The UV bulbs kill any unwanted contaminants that it meets. Both the leisure and competition pool UV systems are original with the building and are much more inefficient that the modern models. The replacement parts are becoming scarce for the aging units and before it becomes impossible to find parts, the units need to be replaced. This project is expected to cost $100,000.
VFD Replacement
There are two Variable Frequency Drives (VFD’s). One on the north and one on the south of the facility.
One needs to be upgraded. The cost is expected to be $18,200. 9 OTHER REVENUES – C.V. STARR ENTERPRISE FUND
Sales Tax
The CVSCC receives from the State Board of Equalization a voter approved half-cent sales tax that is held by the City of Fort Bragg in the C.V. Starr Enterprise Fund, per the operating agreement between MCRPD and the City. All proceeds from the sales tax are dedicated to operation, maintenance, and capital improvements at the C.V. Starr Community Center in compliance with the Fort Bragg Municipal Code Chapter 3.11 (Ordinance No. 902, passed 03-06-2012). Sales tax revenues are estimated to end the FY2022-2023 at $1,257,000.
Property Tax
Pursuant to the Property Tax Exchange Agreement between the MCRPD and the City of Fort Bragg, property taxes received from the Mendocino County Tax Collector with 45% of the District’s allocable share being entitled to the City to be used solely for Parks and Recreation purposes with the City (including CVSCC). The property tax revenue is expected to come in at $272,625 for FY2022-2023.
Reserves
Given the proposed FY2022-2023 operating budget, capital improvements and estimated tax revenue, the CVSCC Enterprise Fund is projected to end the year with an unrestricted net position of $1,126,268.
The Funds are separated as follows; Operating Reserve, is 25% of the prior year projected operating expenditures, and the Capital Reserve which absorbs any excess amount above what goes into the Operating Reserve.