Title
Receive the Lake Resort and Operations Annual Financial Report for FY 2017-18.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive the Lake Resort and Operations Annual Financial Report for FY 2017-18.
SUMMARY:
The Resource Management Agency (RMA) is providing a year-end summary of revenues and expenses (Attachment A "Income Statement"), Budget to Actual (Attachment B), Statement of Cash Flows (Attachment C), and 5-year Income Statement Comparison (Attachment D). The reports, in conjunction with the written report, provide an overview of the financial health, as well as challenges and successes the Lakes Resort is experiencing.
The Income Statement (IS) separates the Lake's operating activities from its non-operating activities to allow the reader to better understand the profitability of the Lakes. Operating activities directly relate to the Lake's core business functions; which include, camping, lodging, marina, moorage, restaurant, grocery/merchandise store and park admission. The non-operating activities, which are also referred to as investing or financing activities, are functions of the Lakes that do not directly relate to providing goods and/or services.
The FY 2017-18 Operating Net Loss for the Lakes, before interest income, transfers in, and interest on long-term debt, is $1,198,824. This means the costs to operate the Lakes under the current business plan, which includes the Management Agreement with CalParks, exceeded the revenues. In comparison, the prior four (4) years prior to Parks being in RMA (refer to Attachment D), Lakes operations incurred losses ranging from $3,083,389 to $1,476,883. After including the non-operating revenue and expenses, such as, interest income of $4,674, transfers in of $711,240 for the Lake's settlement annual debt service payment, and $198,018 for the interest portion of the long-term debt, the total change in Net Position becomes a negative $680,928. This year's loss is the lowest n...
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