Title
Receive the Laguna Seca Recreation Area (LSRA) Enterprise Fund Year-End Financial Report for Fiscal Year’s (FY) 2023-2024 and 2024-25 and the Budget Comparison for FY 2025-26.
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RECOMMENDATION:
It is recommended that the Parks Commission receive the Laguna Seca Recreation Area (LSRA) Enterprise Fund Year-End Financial Report for Fiscal Year’s (FY) 2023-2024 and 2024-25 and the Budget Comparison for FY 2025-26.
SUMMARY:
Public Works, Facilities and Parks (PWFP) is submitting the Year-End Financial Reports for Fiscal Years 2023-24 and 2024-25, along with a budget comparison that includes the current Fiscal Year 2025-26. The reports reflect major financial impacts from the transition of Laguna Seca’s operations to the new Concessionaire, Friends of Laguna Seca (FLS), under an agreement that took effect in August 2024. This shift significantly changed the structure of revenues and expenditures, and these changes are reflected in the most recent financials and current-year budget.
DISCUSSION:
Laguna Seca Recreation Area (LSRA) transitioned to new operational management under Friends of Laguna Seca (FLS), effective August 1, 2024. Prior to this date, LSRA was managed by A&D Narigi, LLC, under which both revenues and expenditures were directly recorded by the County.
Attachment A presents the year-end results for the most recently completed fiscal years. In Fiscal Year 2023-24, LSRA reported a net operating income of $2.8 million. After accounting for non-operating revenue of $19.5 million and an operating transfer out of $0.4 million, the total net change in position was $21.9 million. A significant portion of the non-operating revenue came from the transfer of capitalized project costs for the Track and Bridge Rehabilitation project from the Governmental Fund to the Enterprise Fund. This transfer increased the LSRA’s net position from $9.2 million at the beginning of the year to $31.1 million at year-end.
In contrast, Fiscal Year 2024-25 included ...
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