C.V. STARR COMMUNITY CENTERC.V. STARR COMMUNITY CENTER
C.V. STARR COMMUNITY CENTER
C.V. STARR COMMUNITY CENTER
Mid-Year BUDGET REPORT
FY2022-2023
March 22, 2023
www.mendocoastrec.orgwww.mendocoastrec.org
www.mendocoastrec.org
www.mendocoastrec.org
300 S Lincoln Street, Fort Bragg, CA 95437300 S Lincoln Street, Fort Bragg, CA 95437 300 S Lincoln Street, Fort Bragg, CA 95437
300 S Lincoln Street, Fort Bragg, CA 95437
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 FY2022-2023 budget. The proposed Mid-Year FY2022-2023 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 2026
Bob Bushansky, Board Vice Chair – December 2026
Kylie Felicich, Board Secretary – December 2026
Angela Dominguez, Board Member – December 2024
John Huff, Board Member – December 2024
TABLE OF CONTENTS
Budget summary 4
Revenues 5
Operating Revenue 5
Other income 5
Expenses 6
Personnel Costs 6
Operations_____________________________________________________________________ 6 Repairs & Maintenance___________________________________________________________ 6 Utilities 6
Professional Services 6
Capital Improvements 7
Domestic Hot Water System 7
UV System – Leisure and Competition Pool 7
VFD Replacement 7
Other Revenues – C.V. Starr Enterprise Fund 8
Sales Tax 8
Property Tax 8
Net Revenue/(Expense) 8
Budget summary
Revenues
Operating Revenue
Operating Revenue consists of three main categories. General admission, Rentals and Registrations.
End of FY 2022-2023 Operating Revenue is estimated at $578,882. Operating Revenue is expected to increase by approximately $179,000 over the last fiscal year. This is Great news, as it means the Center is getting closer to its pre-pandemic levels.
General admission revenue consists of user fees collected through drop-in visits, the sale of memberships and other admissions. As the year moves forward and winter sets in, we are seeing a steady increase in both drop-ins and memberships. We were also able to add two new spin-instructors whose classes are increasingly filling up. Beginning April 7, 2023, the Center will be opening up on Friday’s with limited hours on the gym side. By adding Friday’s, we have also been able to add three more fitness classes. This should help with bringing in more members and make our existing members very happy.
Rental revenue is collected for private rentals of facilities, such as birthday party room rentals and pool rentals. The Mendocino Coast Sea Dragons Swim Team, Fort Bragg High School Swim Team, Mendocino High School Swim Team, and Tidal Waves (Special Olympics) Swim Team all rent lanes in the Lap Pool during weekday evenings for practice. Other schools and clubs, some from out of the area, rent the leisure pool by the hour. The Center is also a popular place to have a Birthday Party.
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 many enrichment programs, such as: swim lessons, dance classes, kayaking in the pool, kids’ night out, and art classes as staffing allows. Programs fill very quickly once registration is open. Swim lessons have been notorious for filling in minutes after registration opens.
Other income
Other income revenue is collected for the sale of retail items such as goggles, ear plugs, towels, and swim caps. Other income also includes items such as vending machine commissions and other miscellaneous revenue. Other Income is expected to end the year at $20,000.
Expenses
Personnel Costs
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 $1,052,351.
Operations
Operations includes all items and services needed for the day-to-day operation and upkeep of the facility. These items include pool supplies and chemicals, janitorial supplies, office supplies, permits, postage/shipping, program supplies, recruitment, training, uniforms, and other miscellaneous costs as needed. Marketing and outreach also fall under this category. Operations are forecasted to end the fiscal year at $236,536. This is a decrease in cost from first anticipated.
Repairs & Maintenance
Repairs and maintenance include: repair parts, ground keeping, small tools, equipment and other maintenance related supplies and services. Repairs and maintenance are expected to be $76,132.
Utilities
Utilities include propane, electricity, telephone, water, and sewer service. The proposed FY2022-2023 budget and mid-year adjustment amount for utility expense is expected to be $373,100. The cost of utilities has in some instances doubled in price.
Professional Services
These expenses include interest payments, consultants, legal fees, property tax administration, LAFCO, (Local Agency Formation Commission), and COFB administration fee. These expenses for the end of FY2022-2023, are estimated at $35,696.
Capital Improvements
The Center currently requires an array of projects to be completed that is expected to cost $259,632. Listed below are the capital improvements for the FY2022-2023 budget cycle. Following that is the Capital Improvement Schedule through FY2025-2026.
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.
UV System – Leisure and Competition Pool
The UV Systems are responsible for disinfecting the pool water. The UV bulbs kill any unwanted contaminants that come in contact with them. Both the leisure and competition pool UV systems were installed with the inception of the facility, roughly 14 years ago. Newer models are far more efficient than the originally installed systems we currently have. The replacement parts are becoming sparce 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 end of the facility. Both desperately need to be upgraded. The VFD’s have been ordered, unfortunately the expected delivery is 20-25 weeks. The cost is $19,632.00.
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.
Net Revenue/(Expense)
Given the proposed Mid-Year FY2022-2023 budget, operating revenues, expenditures, capital improvements and estimated tax revenue, the CV Starr is expected to end the fiscal year with a net revenue of $11,856.00. 66 6
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