Title
Receive and accept the FY 2015-16 Financial Status Report for Parks Enterprise Fund 452.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive and accept the FY 2015-16 Financial Status Report for Parks Enterprise Fund 452.
SUMMARY/DISCUSSION:
Fund 452 is the "Lakes Enterprise Fund" for the Parks Department's resort operations at Lakes Nacimiento and San Antonio. FY 2015-16 revenues (before operating transfers in) are estimated at $3,304,499, an increase from budgeted revenues of $2,590,998. The department is also recognizing a $200,000 transfer from the Agricultural Commissioner that was approved by the Board of Supervisors on December 8, 2015.
Even with the closure of Lake San Antonio, funds have been expended in order to keep the Lake in a caretaker status. The major reasons for the ongoing costs are:
* A full time employee at Lake San Antonio (LSA) along with a part time staff person are needed to keep the property in a caretaker status;
* Mandatory expenses the County must pay whether or not the site is open to the public, such as utilities;
* A regulatory report regarding the landfill on site. The County was supposed to conduct a survey 3 years ago and failed to do so;
* Expenditures required by the Concessionaire (CalParks) as part of the Management Agreement such as insurance on the buildings and vehicles
The inability of the Concessionaire, due to low water levels, to generate a profit at the Lakes Resorts requires the Parks Department to reimburse the Concessionaire for any loss in the operation of the Resort as required by the Management Agreement.
The FY 2015-16 adopted budget projected a net profit at the Resorts of $173,968 operated by the Concessionaire. After accruing further expenses during the fiscal year, it is estimated the Resorts will operate at a loss of $431,194 resulting in a budget shortfall of $605,162. Resort revenue is expected to be a little higher from last fiscal year. Resort...
Click here for full text