Title
Receive Lake Nacimiento Resort and Operations Enterprise Fund Year-End Financial Report for Fiscal Year 2021-22.
Report
RECOMMENDATION:
It is recommended that the Monterey County Parks Committee receive Lake Nacimiento Resort and Operations Enterprise Fund Year-End Financial Report for Fiscal Year 2021-22.
SUMMARY:
Public Works, Facilities and Parks (PWFP) is presenting the Year-End Financial Report for Lake Nacimiento Resort and Operations Enterprise Fund for Fiscal Year (FY) 2021-22. Attachment A provides a comparison of the modified budget to actual revenues and expenses for the year (note depreciation expense is an estimate, as the actual was not available). Lake Nacimiento began the year with a positive net position of $1,903,567 and is estimated to end the year with $2,323,912, a net increase of $420,345. The net position includes restricted funds of $947,012 ($683,379 for Zebra/Quagga Mussel Program and $263,633 for 2018 trailer fire insurance proceeds), net investment in capital assets of $1,011,747, leaving an unrestricted net position of $365,152. The unrestricted net position is intended to provide for unforeseen emergencies and changes in financial conditions.
DISCUSSION:
The Resort at Lake Nacimiento is operated under an agreement with a third-party management company, Vista Recreation (formerly Basecamp). The agreement allows for reimbursement of the operator's expenses that exceed revenues, in addition to a monthly management fee and annual incentive fee. The Management fee for FY 2021-22 is $314,556 and increases annually by the June Consumer Price Index for the San Francisco Area. The annual incentive fee is ten percent (10%) of adjusted net income. The adjusted net income excludes specific costs, such as administrative staff costs, ranger surface patrol, County insurance, depreciation, and capital expenses. The County is responsible for capital expenses such as repairs to infrastructure. The estimated annual incentive fee for FY 2021-2...
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