Title
Receive a financial condition report on Lake Nacimiento Resort and Operations Enterprise Fund, Fund 452, for the period July 2019 through February 2020.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors receive a financial condition report on Lake Nacimiento Resort and Operations Enterprise Fund, Fund 452, for the period July 2019 through February 2020.
SUMMARY:
Staff is presenting a financial condition report of the Lake Enterprise Fund. This is the first report under the new model excluding Lake San Antonio (LSA). Lake Nacimiento is budgeted under Fiscal Year (FY) 2019-20 Adopted Budget, Enterprise Fund 452, Appropriation Unit RMA102. As of February 2020, operating revenue projections were $3,694,512 and estimated operating expenditures were $3,800,254, for an estimated net operating loss for FY 2019/20 of $105,742. RMA worked with Basecamp, a third-party contract management company, to mitigate potential losses before year-end, by exploring new revenue streams by increasing visitors and implementing cost-reduction measures. As of February 2020, RMA was optimistic that efforts made to increase business during March through June would result in the Enterprise Fund not needing a General Fund subsidy this fiscal year for annual operations (Attachment A).
However, on April 1, 2020, as a COVID-19 case was reported in one of the Lake Nacimiento neighborhoods and boaters were coming from distances away to recreate, RMA directed Basecamp to close all operations at the resort. A barricade was placed at the entrance limiting access to essential personnel that remained to monitor the grounds only. The Monterey County Shelter in Place Order, originally issued on March 17, 2020, has been reissued three (3) times (April 3, May 3, and May 26, 2020) with restrictions that have severely impacted the Resort's peak season and revenue. On May 8, 2020, the Lakes were allowed to reopen to the public with limited operations and park entry. The ...
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