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<br /> RMSC has made great strides
<br /> RMSC made many changes immediately upon taking over, and they continue to develop the
<br /> management program which is best adapted to the facility. At present, the operations seem to be well in
<br /> hand and the Board is satisfied that great progress has been made. Usage is increased and increasing, and
<br /> expenses are down. Excellent accounting procedures are in place and every dollar and revenue source are
<br /> fully tracked. The management is vigorous in seeking ideas for and developing new programs, and
<br /> welcomes input from all citizens of the County.
<br /> The elements of the present program are described below (Sections II and 111).
<br /> The SportsPlex is a remarkable asset for Orange County
<br /> The SportsPlex provides Orange County with an outstanding sports complex for affordable use by all.
<br /> It is a healthy place for adults and children to spend their recreational hours as well as a tremendous learning
<br /> center. And it is obvious from our statistics that the citizens of Orange County and beyond are enjoying this
<br /> recreational asset. In fact, the SportsPlex is often a hotbed of social activity. For example, in the most
<br /> popular winter skating months (December, January, February), weekend public sessions on the ice rink
<br /> consistently draw large numbers, with as many as 375 skaters enjoying the rink in a single session. On the
<br /> four Saturdays in January, 1997 alone, the SportsPlex hosted more than 2200 public skaters. We have
<br /> documented that with youth hockey, figure skating lessons, public sessions, and private rentals, over 1,000
<br /> people may use the rink on a single Saturday during this period. The numbers in the aquatics center are
<br /> even larger on swim meet days. There are few community-wide events in this area that surpass these
<br /> numbers, week in and week out in season.
<br /> The Board is proud of the numbers we've served so far, and will continue to serve, and of the
<br /> participants we've trained to swim, skate, and exercise.
<br /> The SportsPlex is a good financial deal for Orange County
<br /> While$400,000 is a substantial sum of money, the Board feels that the SportsPlex is a sound financial
<br /> deal for Orange County for many reasons:
<br /> 1) Present management under RMSC has proven that the SportsPlex can more than cover its operating
<br /> expenses. Thus, we know that when the debt is gone and Orange County takes over ownership and
<br /> operation, no government funds will be necessary to keep this fine sports facility operating in the black.
<br /> That is an enviable position.
<br /> 2) Because of the increases in use of the facility we have seen and expect to continue because of
<br /> increased awareness and program expansion, an increasingly large portion of the debt will be paid from
<br /> operating revenues, as originally planned.
<br /> 3)The Orange County contribution to the SportsPlex decreases in value every year. Under the
<br /> present arrangement, the 10-year Orange County contribution to the SportsPlex is fixed at$400,000 per year
<br /> for 10 years. The actual monetary value of this contribution will decrease due to inflation.
<br /> The net contribution of government to the SportsPlex is presently $308,000($400,000 less $92,000).
<br /> At that rate, the total contribution of government to the SportsPlex over the 10-year period would be $3.08
<br /> million. If, for the sake of comparison and discussion only, we assume that inflation at the historically
<br /> low rate of 3% will impact both the $400,000 and property taxes (we of course can't actually know how
<br /> property taxes will evolve), the total net contribution calculates out to be approximately $2.5 million when
<br /> expressed in 1995 dollars. In return for this, Orange County would take ownership of a building that cost
<br /> over$7 million to build, plus the land it sits on.
<br /> 4)Even the full-value contribution is far from out of line. The annual net government contribution
<br /> at the present time($308,000) is less than the$313,000 annual operating budget of the Community Center on
<br /> Elliott Road in Chapel Hill(figures from Jim Baker, Chapel Hill Finance Director). The Community Center
<br /> consists of one pool, some basketball courts, and a climbing wall, i. e., much less than the SportsPlex. The
<br /> Community Center does not pay property tax, and its revenues are far from sufficient to cover the annual
<br /> budget. Total revenue from swimming programs at the Community Center plus the Hargraves Center was
<br /> only $78,000 last year(unfortunately, only the combined figure is available). Thus, the Orange County
<br /> contribution to the SportsPlex is far from out of line with accepted situations elsewhere and with what is
<br /> gained.
<br /> Report to the Orange County Commissioners 5 May,1997 page 6
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