Monday, August 15, 2016

Important news about the Lake Worth Budget, Fiscal Year 2017. News you'll only read about in the Herald:

UPDATE: At the end of this blog post is updated information received today from Juan Ruiz, the City's Leisure Services Director:
Subscribe to the Herald using this link. The next scheduled FY2017 Budget Workshop is Tuesday, August 23rd.
Below are excerpt's from last week's Lake Worth Herald. Very good news and a little not-so-good news (highlights added):

     Burton and Associates, the City's rate consultants presented the Burton models for each of the funds in the budget. The models enable variables to be plugged in and in real time see the effect the variables have on each of the other funds, and the general fund. Eric Van Malssen of Burton Associates explained the fund reserves for operation and maintenance for each fund and presented graphs showing the effects of their recommendations on the reserves.
     Van Malssen explained the proposed rate increases are less than anticipated last year because Lake Worth is experiencing above average growth and this has boosted the revenues for each fund. The water fund has a reserve target of four months operating and maintenance. The recommended rate increase for FY 2017 is 2.75 percent. This is below the 3.5 percent increase anticipated.
     The Local Sewer fund increase is proposed at three percent. The Sanitation fund and the Stormwater fund have received a recommendation of no increase, as has the Electric fund. These funds are in pretty good shape according to the Burton models. The Beach fund is another story.
     Van Massen showed a graph with expenses rising over the next few years and revenues remaining flat, indicating a continued loss in the fund and the fund can't maintain the desired reserves.

[and. . .]

     Leisure Services Director Juan Ruiz was questioned and said it cost's about $90,000 per year to maintain the pool when it is closed. The pool currently costs about three hundred thousand dollars per year with it open as it is. There is a lease on the pool for a swim team that creates about $180,000 annually and the total revenue for the pool is about $210,000, leaving an annual cash flow deficit of nearly $90,000.

[and. . .]

     Director of Sustainability, William Waters reminded the commission an inspector had tagged the [pool] building with a condemnation notice back in 2008. The commission set a six month deadline to look at all options for the pool in an effort to find a way to stop the bleeding of dollars.

Hmmm. Remember the ITN anyone? 

UPDATE: These are numbers just received about the municipal pool:
  • Cost to maintain pool if closed to the public (filled with water) to keep it from cracking = ≈$90–$98,000/year
  • Annual estimated cost to operate pool part-time year round = $300,000
  • Annual revenues ≈$85–$100,000 depending on the weather
  • Pool heaters (2) are broken = $40,000 each to replace
  • Pool lease to the East Coast Aquatics Program = $3,000/month