Adopted Budget (Final Document)

Membership and Program Services (continued)

Financial Comments Prior to FY 2008-09, the City operated the Centennial Recreation Center, Aquatics Center, and recreation programs as independent divisions. Once combined to operate as one integrated division, the City was able to reduce duplication, leverage resources, and add value to the community membership model. As a result, the annual General Fund investment for these services has been limited for many years. However, the recent Covid-19 pandemic has reduced the number of users paying for services at the Recreation facilities. The Division has drastically reduced expenses to offset some of the revenue lost from lower use. It is anticipated that it will take multiple years for the program to reach past levels of cost recovery. Today, Membership and Program Services is responsible for generating the largest percentage of revenue for Recreation and Community Services and is the General Fund’s third largest source of revenue (behind property and sales tax). This market-driven revenue source is dependent on attracting and retaining members and daily customers. Membership grew significantly each year since the facility was opened through FY 2012-13. The growth rate began to plateau in FY 2013-14 as the facility reached its load limit. When the Covid-19 pandemic hit in March 2020, membership began to see its first decline since opening. While membership still brings in the largest source of revenue for the Recreation and Community Services Division, it has been significantly reduced. While the community begins to rebuild from the pandemic, the focus for FY 2022-23 and FY 2023 -24 will not only be on retaining the existing customer base but will also focus heavily on new member growth and bringing back members who cancelled during the pandemic. Member engagement and well-maintained facilities and equipment will continue to be the cornerstone of this effort. The escalating cost of maintenance and minimum wage are accounted for in this budget. In total, an estimated $3.4 million in revenue will be generated in FY 2022-23 and $3.9 million in FY 2023-24 to support service delivery.

220 PUBLIC SERVICES