Title
Receive a report on the Lakes Resort and Operations Enterprise Fund, Fund 452, FY 2018-19 financial condition.
Report
RECOMMENDATION:
It is recommended that the Parks Commission receive a report on the Lakes Resort and Operations Enterprise Fund, Fund 452, FY 2018-19 financial condition.
SUMMARY:
Overall, the Lakes Resort and Operations Enterprise Fund (Fund 452) ended FY 2018-19 with a $2,131,440 deficit as detailed in this report and its attachments. The Budget Committee supported a General Fund Contribution to balance this Fund for Fiscal Year (FY) 2018-19 from Cannabis Tax Assigned Fund Balance (balance of $20.9 million as of October 22, 2019). This recommendation will be brought to the Board of Supervisors on November 19, 2019 for consideration.
The Lakes Enterprise Fund began FY 2018-19 with a negative net position of $3,384,569 and ended with a negative net position of $2,733,381. This reflects a positive change in net position of $651,188 due to a one-time General Fund subsidy of $2,243,149 for the FY 2017-18 deficit. The Board also allocated $250,000 for current year operating capital; however, $108,151 was needed to completely offset the prior year's deficit leaving $141,849 for FY 2018-19 operating capital.
DISCUSSION:
Oversight of the Lakes Resort and Operations was delegated to RMA in July 2016, and the County Parks Department was integrated into the RMA by Board action in December 2016. When the Board of Supervisors approved the RMA to move forward with a limited reopening of Lake San Antonio (LSA) on July 26, 2016, it was done without an augmentation of funds. LSA has remained opened since that date under the Enterprise fund, and at the end of each fiscal year, a General Fund subsidy has been necessary to cover the operating deficit. In the meantime, RMA continues to gain direct experience and knowledge about the Lakes Resort and Operations from hands-on training and research and analysis of facility operations dating back to 19...
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