Title
Receive the Lake Nacimiento Resort and Operations Enterprise Fund Year-End Financial Report for Fiscal Year (FY) 2024-25.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive the Lake Nacimiento Resort and Operations Enterprise Fund Year-End Financial Report for Fiscal Year (FY) 2024-25.
SUMMARY:
Lake Nacimiento operations in FY 2024-25 remained stable, with revenues below budget due to reduced visitation and project delays, 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.
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. The shortfall was primarily driven by increased competition from Lake San Antonio and lower-than-average water levels, both of which reduced overall visitation and related revenue streams. In addition, delays in the lodge renovation project, caused by the late discovery of additional rodent and water intrusion damage that required unplanned repairs, limited available accommodations and further impacted revenue. Planned boat repairs were also delayed due to limited vendor availability and parts shortages, preventing the expected increase in rental and usage revenue.
Operating expenditures totaled $4,068,589, coming in $257,509 under the adopted budget. Of the total, $3,866,032 was related to lake operations, with the remaining $202,557 attributable to depreciation. ExplorUs managed...
Click here for full text