The Oro Valley Mayor, and his fellow lackeys, continue to state on radio shows and at public meetings that the Community Center and associated golf, is now breaking even. As a result of this, many people have been asking me just exactly what the true numbers are.
I had been waiting until the Town published the February financials to respond to these questions. The Town has published the March 2018 financials, but failed to publish the February financials. This oversight was never mentioned by any of the current council, and I doubt that they even realized the omission. When I asked the Town what happened to the February report, their reply was:
“Due to the timing and the workload associated with the budget preparation, it was more efficient to prepare the March financials to get us current than to do both months, especially since the March financials are cumulative.”
Hogwash. This is coming from the award winning Finance Department? This has NEVER been a problem before. How many companies would allow their CFO to omit the publication of a financial statement? How many company shareholders would allow for this excuse? The Town informs me, that if I desire to see the February financials, I will need to submit a public records request.
Below are the cumulative totals for the Community Center Fund (CCF), Contracted services (Troon) and Town Services since we began this debacle in May 2015.
Definitions
Contracted income (Troon) includes: Golf revenues, Member Dues, Tennis Revenues, Food and Beverage, and Merchandise
Contracted expenses include: Personnel, Operations & Maintenance, Equipment leases
Town income includes: Daily Drop-Ins, Member Dues, Recreation Programs, Swim Team/Swim Lessons, Facility Rental Income, and Concession Sales
Town expenses include: Personnel, Operations and Maintenance
Other revenue sources include: Sales Tax, Real Property Rental Income, and General Fund Transfers.
FISCAL YEAR 2014/15 (Only 2 months, May-June 2015)
CCF ended the year with a balance of $1,025,222. This includes a transfer of $1.2 million from the General Fund (with a promise to pay it back at $120,000 per year for 10 years) and $506,710 in sales tax revenues. Troon Contracted Services lost $612,094. The Town’s losses were $31,521. They had promised to spend $810,000 on capital improvements but spent only $37,873.
FISCAL YEAR 2015/16
CCF ended with a balance of $162,152. The Town Council never made the first year’s promised repayment of $120,000 back to the General Fund. Troon Contracted services lost $2,567,970. The Town services lost $7,731. Sales tax revenues were $2,030,750. The Town promised capital improvements of $1,860,500 but spent only $499,774.
FISCAL YEAR 2016/17
CCF ended $97,156 in the red. This year the Council transferred another $350,000 from the General Fund into the CCF in order to make the promised $120,000 payment back into the General Fund, making a net withdrawal of an additional $230,000. Troon Contracted services lost $2,512,938, and the Town’s services lost $127,957. Sales tax revenues were $2,199,466. The Town promised $1,772,500 in capital improvements but spent only $72,414.
75% through FISCAL YEAR 2017/18
CCF is $60,369 in the red. There has been no $120,000 repayment back to the General Fund (yet). Troon Contracted services have lost $1,391,655, and the Town’s services have lost $86,872. Sales tax revenues are $1,713,909. The Town promised capital improvements of $596,000 but have spent only $29,464.
In summary, since we purchased the community center in 2014:
Total Contracted services lost – $7,084,657
Town services lost – $254,081
Promised capital improvements – $5,039,000 Actual capital improvements – $639,525 (this is why they want a bond)
Sales tax revenues – $6,450,835 (so far)