Title
Receive a financial condition report on Lake Nacimiento Resort and Operations Enterprise Fund, Fund 452, for Fiscal Year (FY) 2019-20 and estimates for FY 2020-21.
Report
RECOMMENDATION:
It is recommended that the Parks Commission receive a financial condition report on Lake Nacimiento Resort and Operations Enterprise Fund, Fund 452, for Fiscal Year (FY) 2019-20 and estimates for FY 2020-21.
SUMMARY/DISCUSSION:
The Public Works, Facilities and Parks Department (PWFP), formerly the Resource Management Agency, is providing a financial condition report for the Lake Nacimiento Resort and Operations Enterprise Fund for Fiscal Year (FY) 2019-20 and a forecast for FY 2020-21 using three different operating scenarios. Attachment A provides an overview of the Lakes Operations since the Parks Department was reorganized under the RMA and details both FY 2019-20 actuals and FY 2020-21 forecasts of revenues, expenses, and net position. In summary, Lake Nacimiento FY 2019-20 Resort and Operations ended up in a net negative position of $1,433,912; FY 2020-21 is currently projected to end up in a net negative position of $361,870.
On October 20, 2020, RMA requested the Board of Supervisors approve a General Fund subsidy of $1,433,912 for FY 2019-20, to replace:
$700,000 Zebra/Quagga Mussel Program Restricted Funds used to cover operating costs;
$263,633 2018 Trailer Fire Insurance Proceeds (Restricted Fund) used to cover operating costs; and
$470,279 Lake Nacimiento Resort and Operations Enterprise Fund FY 2019-20 loss.
The Board of Supervisors approved this request and adopted a resolution to authorize and direct the Auditor-Controller to amend the FY 20-21 Adopted Budget to increase appropriations in General Fund, Fund 001, Other Financing Uses, Appropriation Unit CAO017, by $1,433,912, funded by a decrease in General Fund, Fund 001, Contingencies, Appropriation Unit CAO020, which provided a General Fund subsidy of $1,433,912.
PWFP projects FY 2020-21 will experience losses up to $ 361,870, which would require an additional General Fund subsidy. Staff will continue to work with Basecamp to minimize losses throughout the year.
OTHER AGENCY INVOLVEMENT:
RMA consulted the County Administrative Office Budget & Analysis Division on this report.
The Budget Committee voted to support this recommendation on October 7, 2020 and the Board of Supervisors approved it on October 20, 2020.
FINANCING:
The General Fund subsidy of $1,433,912 put the Enterprise Fund in a positive fund balance to begin FY 2020-21. This subsidy provided for the FY 2019-20 loss of $470,279 and funded the restricted fund balance of $963,633. The funding for the $1,433,912 subsidy was provided by the General Fund, Fund 001, Contingencies, Appropriation Unit CAO020, available balance of $2,247,993, reducing it to $814,081.
The Enterprise Fund ended FY 2019-20 with a positive cash balance of $150,312, obviating the need for a temporary, cash flow loan for the fiscal year.
Prepared by: Jessica Cordiero-Martinez, Finance Manager II (831) 755-4824
Approved by: Shawne Ellerbee, Assistant Director of Public Works, Facilities and Parks
Approved by: Randy Ishii, M.S., P.E., P.T.O.E., Public Works, Facilities and Parks Director
Attachments:
Attachment A-Lake Nacimiento Financial Condition Report for Fiscal Years 2019-20 & 2020-21