Morgan Hill
– The Centennial Recreation Center is beating financial
projections while the Aquatics Center is bringing in less money
than expected, according to a mid-year financial report on the
city’s recreation department.
Morgan Hill – The Centennial Recreation Center is beating financial projections while the Aquatics Center is bringing in less money than expected, according to a mid-year financial report on the city’s recreation department.
Memberships at the Centennial Recreation Center on Edmundson Avenue, which opened last October, are continuing to rise, surpassing the 1,800 mark by mid January. It’s good news for city officials, who expected 1,350 memberships by that point.
The center offers a workout room, gym, small swimming pool, play area for children and wings for teens and seniors.
Revenues have exceeded expectations while expenditures have dropped, resulting in a projected 81 percent cost recovery this year. The original target was 76 percent.
However, it’s been a difficult year for another costly recreational facility, with fewer people swimming at the outdoor Aquatics Center on Condit Road than in previous years. Loss of swim club rentals has taken a toll this year and fewer season-pass holders last summer led to a drop in concessions and retail sales. The center expects a revenue shortfall of $368,000 for the fiscal year ending June 30.
One reason for this year’s Aquatics Center shortfall was an “overly aggressive” 84 percent cost-recovery goal set at the beginning of the budget cycle, according to the mid-year fiscal update written by recreation staff and presented Wednesday to the Morgan Hill City Council.
To help defray the losses, the Aquatics Center staff has trimmed expenditures by roughly $138,000. That still leaves a $230,000 operational gap to be covered by the Morgan Hill Recreation and Community Services Department’s budget, which comes from taxpayers. Nevertheless, the center would still recover 66 percent of its expenses during the budget cycle, slightly higher than the 65 percent state average for public swimming pools.
Aquatics Center Manager Angela Papp said she’s working on a number of enhancements to bring in more swimmers this summer. The center is revising its rates, establishing discounts for Centennial Recreation Center members, adding another evening for families to enjoy the pools and starting an off-season program to bring students in on field trips. The center will also open
concessions stands during swim lessons in a bid for sales.
Overall, the report shows the Morgan Hill Recreation and Community Services Department expects to end the fiscal year $413,000 under budget, as far as expenditures go. But at the same time the department sees revenues dropping and will need $56,000 in additional tax money if projections hold until the end of the fiscal year. The department started the year with a $5 million budget and expects to recover 65 percent of its costs through programs and services.
While there was no action taken on the informational report, council members weighed in with their thoughts – and they were mostly positive.
“This is all good news,” said Councilman Larry Carr, commending the department for making adjustments through a time of uncertainty and change. “I hope the projections through the end of the year continue … and I hope that more people pay attention to what the focus is, balancing cost-recovery with affordability and community access. Recreation in my mind is about building community.”
Councilman Greg Sellers said the popularity of the Centennial Recreation Center is encouraging but acknowledged he’s concerned with declining interest in the Aquatics Center after two years. But Sellers commended the recreation staff for its forthright report.
“It’s a difficult dilemma,” Sellers said, “to operate a public facility and try to cover costs at 100 percent, which most cities do not even come close to.”
