Finance Committee Agenda and Packet 2020 08 18

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W L'�Tyi' Memorandum s��I.�e Parks & Recreation To: Finance Committee From: Nathan Mosley, Director of Parks, Recreation and Open Space Date: August 18, 2020 Subject: 2020 -2026 Recreation Center Revenue Projections Purpose The purpose of this agenda item is to provide three potential revenue scenarios for consideration and discussion by the Finance Committee. The goal of this discussion is to determine a "most likely" revenue scenario that can serve as the revenue baseline for the Recreation & Senior Center. Background On March 14, 2020, the City closed the Recreation & Senior Center (RSC), the Library, the Museum and Arts Center until further notice. Two days later, on March 16, the Coal Creek Golf Course (CCGC) was closed as well. These closures were made in an effort to reduce community transmission of the virus consistent with state and local requirements and public health guidance. While the Coal Creek Golf Course was able to reopen on April 25, the Louisville Recreation and Senior Center remained closed through June 30, reopening on Wednesday July, 1. Currently the Recreation Center is operating under local, state and federal guidance. This currently includes requiring facial coverings, capacity restrictions and other social distancing measures. The Senior Center remains closed based on guidance from the state. These closures have had significant impacts on revenue and will continue to impact revenue at the Recreation Center due to ongoing operational restrictions and decreases in the amount of guests using the facility. This agenda item material includes three different revenue scenarios. Considerations/assumptions that were used to create the "Most Likely" and "Worst Case" scenarios are included as an attachment to this memo as is an excel spreadsheet which includes a tab with a graphic representation of the three revenue projections as well as a tab with comparisons between the scenarios with cumulative losses over the 6 year period. Each scenario is compared to 2019 actual revenues. The scenarios include: • Best Case (This scenario was presented to finance committee as the baseline revenue projection in July). o This scenario is based on a 50% reduction in membership revenue for the remainder of the year and a 75% reduction in programming revenue for the remainder of the year. There were some slight variations in projections for specific revenue line items that. o This scenario represents a 44% decrease in operational revenues. o The 6 year cumulative decrease in revenue compared to 2019 revenues is $3,458,517. 10