City of Fort Bragg
Mid-Year Budget FY 2023/24
CV STARR ENTERPRISE FUND
The C.V. Starr Community Center and Sigrid & Harry Spath Aquatic Facility (C.V. Starr Center) represent a comprehensive 43,000-square-foot establishment. This multifaceted facility features an indoor water park, fitness and exercise rooms, weight rooms, and meeting spaces available for community use. The surrounding grounds complement the Center's offerings with amenities such as a dog park, Skateboard Park, and petanque courts. Ownership of the C.V. Starr Center lies with the City, and its operational, maintenance, and capital improvement costs are partially mitigated through restricted sales tax and property tax revenues.
These dedicated funds are specifically allocated to the C.V. Starr Enterprise Fund, ensuring a financial framework to support the ongoing success of the facility.
The city has engaged in a contractual arrangement with the Mendocino Coast Recreation and Parks District (MCRPD) for the day-to-day operation and maintenance of the C.V. Starr Center. However, a significant development occurred in August 2023 when the MCRPD Board issued notice to terminate the operating agreement. The MCRPD allowed for a 6-month transition to facilitate a smooth transition. In response to this change, the CV Starr Ad-Hoc Committee, in collaboration with City Staff, has diligently formulated a comprehensive plan. The C.V. Starr Center has transitioned into City operations in February 2024. This strategic plan ensures the continued provision of services and facilities to the community, aligning with the City's commitment to its residents' well-being and recreational needs.
Revenue from general admissions includes fees collected from drop-in visits, membership sales, and other admissions. The Center faced closures during the COVID-19 pandemic, affecting membership sign-ups and drop-in visits. Safety measures such as
continued mask usage (except in the pool area),
closure of showers to minimize unmasked time,
and capacity restrictions during Open Swim and
Swim Slide Splash sessions contributed to this
revenue shortfall.
Despite these challenges, membership revenue
and general admissions have rebounded,
reaching 61% by the end of the second quarter
since reopening. Additionally, rate increases
approved by the City Council in the second
quarter, effective January 2024, are expected to
generate an estimated $90k in additional revenue. It is gratifying to note that our sales tax figures are in line Audited
FY 2021/22
Actuals
Audited
FY 2022/23
Actuals
Adopted
Budget
Approved Net
Budget
Amendments
Amended
Budget
Pro Rated
Budget as of
12/31/2022
YTD Actual
12/31/2023
Mid-Year
Variance %
Variance
Budget vs.
Actual
Estimated Year
End
Forecast
Surplus/
(Shortfall)
Operating Revenue $ 599,048 $ 596,248 $ - $ 596,248 $ 298,124 $ 363,373 61% $ 65,249 $ 626,746 30,497 Sales Tax 1,211,340 1,175,441 1,199,769 1,199,769 599,885 616,476 51% 16,591 1,199,769 - Property Tax 268,596 305,258 283,127 283,127 141,563 167,899 59% 26,336 283,127 - Other Income 982,537 111,910 40,000 40,000 20,000 2,457 6% (17,543) 40,000 - Total Revenue 2,462,473 2,191,657 2,119,144 - 2,119,144 1,059,572 1,150,205 54% 90,633 2,149,642 30,497 Personnel Costs 826,436 1,168,544 1,439,777 - 1,439,777 719,888 646,116 45% (73,773) 1,312,850 126,927 Operations 267,253 358,038 172,411 - 172,411 86,206 60,616 35% (25,590) 155,231 17,180 Repairs & maintenance 5,451 46,441 60,000 7,247 67,247 33,624 25,514 38% (8,109) 55,000 12,247 Utilities 321,693 365,941 350,000 - 350,000 175,000 187,367 54% 12,367 350,000 - Professional Services 19,900 56,986 35,419 15,000 50,419 25,210 29,825 59% 4,616 67,500 (17,081) Insurance - 60,229 30,208 - 30,208 15,104 13,895 46% (1,209) 30,208 - Depreciation ** - 650,590 - - - - 0% - - -
Total Expenditures 1,440,733 2,706,769 2,087,814 22,247 2,110,061 1,055,031 963,333 46% (91,698) 1,970,788 139,273 Net Revenue/(Expense) $ 1,021,740 $ (515,112) $ 31,330 $ (22,247) $ 9,083 $ 4,542 $ 186,872 2057% $ 182,331 $ 178,854 169,770 Capital Improvements - 5,996 1,678,226 306,176 1,992,402 996,201 166,679 8% (829,522) 405,982 1,586,420
CV STARR ENTERPRISE
1500
1600
1700
1800
1900
Active CVSCC Memberships
Nov-23 Dec-23 Jan-24 Feb-24
City of Fort Bragg
Mid-Year Budget FY 2023/24
with quarterly budget projections, indicating that we are on track to meet our overall budget expectations of $1.2 million.
Property tax funds are typically received in the third quarter of the fiscal year, aligning with our budget planning and contributing to the overall financial well-being of the Center.
Cost cutting Measures
Since assuming management of the Center, the City of Fort Bragg has embarked on several cost-saving initiatives to enhance operational efficiency and drive membership growth. A significant step was the consolidation of fitness class offerings from 70 to 27, ensuring a more financially sustainable program.
Additionally, fitness instructors—excluding those certified in Silver Sneakers—have transitioned from employee status to independent contractors. This move aims to uphold instructional quality while enhancing cost-effectiveness. Plans are in progress to expand class offerings under this revised model.
To further streamline operations, staffing needs were meticulously evaluated across departments, resulting in certain positions transitioning to part-time roles or remaining vacant in Guest Services and Administration.
Moreover, due to staffing shortages, the Center temporarily suspended operations on Sundays, yielding personnel cost savings equivalent to 45% of the personnel budget at mid-year.
Efforts are underway to recruit lifeguards to fill at least five vacant part-time positions, ensuring seamless operations seven days a week, including holidays, and upholding safety standards. In July 2024, eleven fulltime employees will begin receiving City benefits (Dental, Medical, Vision, and CalPERS), with these costs factored into the Fiscal Year 2025 budget development.
A mid-year budget amendment of $24,851 is proposed for IT network upgrades, focusing on monitoring and security, as well as a new Wi-Fi system at the Center. These expenses will be offset by savings in other expense categories such as Operations and Repairs and Maintenance, which are anticipated to end the fiscal year under budget due to cost-saving measures. As we progress through the fiscal year, we remain committed to prudent financial management, ensuring that our budget allocations align with our operational needs and strategic goals.
The CV Starr reserves are expected to reach $2,856,538 by the end of the fiscal year, reflecting a notable increase of $405,982. However, the Center has allocated $2.6 million for Capital Improvement Program (CIP) projects over the next four years, which is anticipated to deplete the reserves. In response, the City is proactively pursuing grants to mitigate these expenses and alleviate the financial burden on the CV Starr reserves.
$645,608
$1,489,006
$2,274,705 $2,450,556
$2,856,538
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
Projections
CV STARR RESERVES