Title
Receive the Lakes Resort and Operations Enterprise Fund Biannual Financial Report for the period July 1, 2018 through February 28, 2019.
Report
RECOMMENDATION:
It is recommended that the Parks Commission receive the Lakes Resort and Operations Biannual Financial Report for the period July 1, 2018 through February 28, 2019.
SUMMARY:
The Resource Management Agency (RMA) is providing an 8-month summary of the Lakes Resort and Operations Revenues and Expenses (Attachment A "Lakes Income Statement"), Budget to Current Year Estimate Comparison, with Period 8 Actuals (Attachment B), an Income Statement 5-Year Comparison (Attachment C), and Basecamp (formerly CalParks) Profit and Loss & Summary of County Payments (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 Lakes 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 Lakes 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.
As of February 28, 2019, the Lakes has an operating net loss of $845,543, before interest income, transfers in, and interest on long-term debt. Simply put, under the current Management Agreement with Basecamp (formerly CalParks) managing both Lake Nacimiento and Lake San Antonio, operating costs exceed revenue. In comparison, the two (2) years prior to Parks being managed by RMA (refer to Attachment C), Lakes operations incurred losses of $3,083,389 and $1,476,883. The reoccurring operating losses demonstrates that Lakes current opera...
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