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File #: BC 19-120    Name: a. Receive a report on the Lakes Resort and Operations Enterprise Fund, Fund 452, FY 2018-19 financial condition; b. Support funding the FY 2018-19 Lakes Resort and Operations Enterprise Fund, Fund 452, deficit of $2,131,440; and c. Provide direction
Type: Budget Committee Status: Agenda Ready
File created: 10/17/2019 In control: Budget Committee
On agenda: 10/24/2019 Final action:
Title: a. Receive a report on the Lakes Resort and Operations Enterprise Fund, Fund 452, FY 2018-19 financial condition; b. Support a General Fund Contribution of $2,131,440 for the FY 2018-19 Lakes Resort and Operations Enterprise Fund, Fund 452, to offset the deficit; and c. Provide direction on preferred funding source.
Attachments: 1. Budget Committee Report, 2. Attachment A - CAO Analysis on Fiscal Status of the Lake Resorts, 3. Attachment B - Lakes Resort & Operations Income Statement for FY 2018-19, 4. Attachment C - Lakes Resort & Operations Budget to Actual FY 2018-19, 5. Attachment D - Lakes Resort & Operations Income Statement Five-Year Comparison
Title
a. Receive a report on the Lakes Resort and Operations Enterprise Fund, Fund 452, FY 2018-19 financial condition;
b. Support a General Fund Contribution of $2,131,440 for the FY 2018-19 Lakes Resort and Operations Enterprise Fund, Fund 452, to offset the deficit; and
c. Provide direction on preferred funding source.
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
a. Receive a report on the Lakes Resort and Operations Enterprise Fund, Fund 452, FY 2018-19 financial condition;
b. Support a General Fund Contribution of $2,131,440 for the FY 2018-19 Lakes Resort and Operations Enterprise Fund, Fund 452, to offset the deficit; and
c. Provide direction on preferred funding source.

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. Staff recommends that the Budget Committee accept this report and support a General Fund Contribution to balance this Fund for Fiscal Year (FY) 2018-19 from either General Fund Contingency (balance of $4,512,868) and Cannabis Assigned Fund Balance (balance of $15.6 million as of June 30, 2018).

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...

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