Title
Receive the Lake Nacimiento Resort and Operations Enterprise Fund Year-End Financial Report for Fiscal Year (FY) 2024-25 and the Budget Comparison for FY 2025-26.
Report
RECOMMENDATION:
It is recommended that the Parks Commission receive the Lake Nacimiento Resort and Operations Enterprise Fund Year-End Financial Report for Fiscal Year (FY) 2024-25 and the Budget Comparison for FY 2025-26.
SUMMARY:
Lake Nacimiento operations in FY 2024-25 remained stable, with revenues below budget due to project delays and reduced visitation, while expenditures were carefully managed under budget. A major capital investment in the lodge renovation was completed, supported by a transfer from the County's Building Improvement and Replacement Fund.
The FY 2025-26 budget reflects increased operating revenues and expenditures, along with the use of Restricted Fund Balance to support several capital projects, resulting in a projected reduction in Net Position.
DISCUSSION:
The Resort at Lake Nacimiento is operated under an agreement with a third-party management company, ExplorUs (formerly Vista Recreation). The agreement allows for reimbursement of the Operator’s expenses that exceed revenues, in addition to a monthly management fee and annual incentive fee of 10 percent of adjusted net income. The management fee for FY 2024-25 is $356,746.
In FY 2024-25, total operating revenues collected at Lake Nacimiento were $4,070,826, which was $679,133 below the adopted budget. This shortfall was primarily due to delays in the lodge renovation project, which limited available accommodations and related revenue. In addition, planned County boat repairs were not completed as anticipated, preventing the expected increase in rental and usage revenue. Lower-than-average water levels also impacted overall visitation and associated revenue streams.
Operating expenditures totaled $4,068,589, coming in approximately $257,509 under the adopted budget. Of the total, $3,866,032 was re...
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