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Final VersionFebruary 16, 2007

If your version does not have this slide in green then it isn’t

the final version. Please delete all other copies

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LEROY PARK DISTRICT&

CITY OF LEROY

A Joint Venture for a Community Recreation Facility

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Together they will form a new entity called the

Recreation Center Authority R C A

LeRoy Park District

The Park District is a stand alone taxing body charged with the responsibility of providing recreation services to an area similar to the area served by the LeRoy School District.

City of LeRoy

The City is a stand alone taxing body charged with the responsibility of providing parks and related services to individuals and families residing within the corporate limits.

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RECREATION CENTER AUTHORITY

R C A

• The RCA will build a community recreation center that will be owned 50% by the City of LeRoy and 50% by the LeRoy Park District

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RECREATION CENTER AUTHORITY

R C A• This entity will be made up of a five-member board.

– 2 representatives from the LeRoy Park District Board– 2 representatives from the City of LeRoy (City Council) – 1 member at large

• The board will be responsible for the management of the Recreation Center.

• The board will oversee all day-to-day decisions for the RCA.

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RECREATION CENTER AUTHORITY

R C A

• The Recreation Center Authority will build a $4,350,000 facility on the existing Park District property to include:

• A 6-Lane Competition Size Swimming Pool (Outdoor)• A Diving Well (Outdoor)• A zero depth entry children’s pool (Outdoor)• A 4-Lane Competition Size Indoor Pool• A Jacuzzi• A Gym with an elevated walking track• A Weight/Fitness area & 2 Activity Rooms• An indoor/outdoor concession area

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Washington Street View

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Overhead View (Looking Southeast)

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3D View Floor Plan

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LeRoy Vote YES

• The Purpose Of This Presentation Is To Provide ALL Available Information To Allow The Citizens Of LeRoy To Vote YES With Confidence For The Proposed Sales Tax Referendum On April 17, 2007.

• A Yes Vote Will Allow The Joint-Venture Between The City Of LeRoy And The LeRoy Park District To Build A Community Recreation Center For The Benefit Of The Entire Community.

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Who Will Benefit From The Recreation Center?

• Pool facilities available 12 months of the year.• A gym available for adults on a regular basis.• A weight/fitness area available on a daily basis.• A walking track open to the public.• Classes and programs to utilize the indoor and

outdoor pools and the activity rooms• Child care services

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What Is Wrong With The Existing Structure?

• The existing pool structure was evaluated by the architect (Caius Jennison of Farnsworth). It is his professional opinion that the existing structure is no longer viable. A liner could be installed, significant improvements to the chemical and drainage systems along with the decking, but the cost would be over 80% of the cost of building a new facility.

• With the City becoming a partner, and adding the indoor facilities, the project has now moved in a completely different direction.

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What Will Happen to theExisting Services?

• All services currently provided by the Park District at this location will be rebuilt or relocated. Relocated facilities will be built in City of LeRoy neighborhood parks.

• Outdoor Pool facilities Rebuilt

• Basketball Courts Relocated

• Tennis Courts Relocated

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How Does Increasing Sales Tax Build a Recreation Center?

• The City of LeRoy has authorized a Sales Tax Referendum to increase the sales tax rate in LeRoy from the existing 6.25% to 6.75%.

• This is equal to .5% (1/2 of 1%) increase and according to the State of Illinois this tax will generate approximately $150,000 per year in new funds.

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Sales Tax

Current Sales Tax Structure – 6.25%• 1. 5% Paid to the State of Illinois• 2. 1% Paid to the City of LeRoy• 3. .25% Paid to McLean County

Proposed Sales Tax Structure – 6.75%• 1. 5% Paid to the State of Illinois• 2. 1% Paid to the City of LeRoy• 3. .25% Paid to McLean County• 4. .5%(1/2 of 1%) Paid to City of LeRoy (RCA)

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How Does LeRoy Sales Tax Compare to Other Communities?

• Current LeRoy Rate 6.25%

• Proposed LeRoy Rate 6.75%

• Bloomington Rate 7.50%

• Normal Rate 7.50%

• Champaign Rate 7.75%

• Urbana Rate 7.75%

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Sales Tax (Interstate Impact)

• In 2005, the City received $330,000 in sales tax dollars.

• The estimate is that approximately $98,000 was paid by out-of-town patrons and passers-by.

• Approximately $45,000 (30%) of the projected $150,000 to be generated with the .5% increase in sales tax would come from out-of-town customers.

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Financing

If the referendum passes:

• The City will contribute $150,000 per year to paying the debt to build the new facility.

• The Park District has pledged $100,000 a year in property taxes from their existing revenue base.

Property Taxes

No New Property Taxes

are included to fund either the debt or the operation of this facility.

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DEBT SERVICE

• Project Cost $ 4,350,000• OSLAD Grant ($ 400,000)• Down Payment- City ($ 400,000)• Down Payment-Park D($ 100,000)• Const Buy Downs ($ 150,000)• Gifts-Bequests ($ 100,000)• ------------------------------------------------------• Total to Finance $ 3,200,000• ===============================

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DEBT SERVICE

• Financing $3,200,000 over 20 Years at 5% interest will require annual debt service of

$ 253,422.96

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DEBT SERVICE

• The City would fund $150,000 per year from sales tax.

• The Park District would fund $100,000 per year from existing property taxes.

• This leaves a short fall in debt service on an annual basis of $3,422.96

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DEBT SERVICE

• OTHER OPTIONS – Fundraising– Naming Rights to the facility– Naming Rights to sections of the facility– BroMenn– State Farm– Brand Name Advertising (Pepsi – Pioneer)– Utilities (Ameren & NICOR)– Sports Companies (Wilson – Nike)

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OPERATING THE FACILITY

• Option 1: Private Contract– The facility could be leased to a private

company.

– They would have the responsibility for the day to day operations.

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OPERATING THE FACILITY

• Option 2: Not-For-Profit Contract

– The facility could be leased to a not-for-profit company like a YMCA.

– They would have the responsibility for the day to day operations.

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OPERATING THE FACILITY

• Option 3: In-house (RCA Board) + Staff

– A budget would be established and the RCA Board would run the facility with a paid staff.

– The paid staff would likely be employees of

the City with the RCA having the responsibility to cover all expenses.

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OPERATIONS BUDGET

• Estimated Annual Revenue– Memberships $ 110,000– Adult Leagues $ 6,000– Drop-Ins $ 5,000– Programs $ 69,000– Concessions $ 10,000– Private Leases $ 27,000

– TOTAL REVENUE $ 227,000

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OPERATIONS BUDGET

• Estimated Annual Expenses– Wages $ 111,500– Employee Benefits $ 22,300– Insurance $ 6,700– Utilities $ 46,500– Maintenance & Repair $ 15,000– Chemicals $ 7,500– Legal $ 1,000– Office Expenses $ 4,500– Miscellaneous Exp $ 10,000– TOTAL $ 225,000

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OPERATIONSRevenue & Expense

• Operating Revenue $ 227,000

• Operating Expense $ 225,000

• Operating Profit $ 2,000

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OPERATIONS

• OTHER REVENUE OPTIONS– * Lease with LeRoy Schools– * Lease with BroMenn– * Lease with Champion Fitness– * Renting the Gym space– * Annual Fundraiser– * Corporate Memberships– * Merchandising

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CITY COUNCILWHAT IS THE NEXT STEP?

• Are you ready to go to the voters with the option of increasing the sales tax by .5%?

• This would change the local rate from 6.25% to 6.75%. (With the exception of titled vehicles and equipment) They would not increase from the current rate.

• City Council Approved in November 2006

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PARK DISTRICTWHAT IS THE NEXT STEP?

• Are you ready to pledge $100,000 in annual property taxes to building and operating this facility?

• Are you ready to join forces with the City of LeRoy to build a new recreation center facility?

• Park District Approved in December 2006

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Referendum

• All residents living within the corporate limits of Le Roy will be asked to vote on the following question on April 17, 2007.

• “Shall the City of Le Roy impose a one-half (1/2) of 1% Non-Home Rule Municipal Retailers’ Occupation Tax and Non-Home Rule Municipal Service Occupation Tax (commonly referred to as a municipal sales tax) for expenditure on property tax relief and public infrastructure in accordance with the provisions of Sections 8-11-1.1 through 8-11-1.4 of the Illinois Municipal Code (65 ILCS 5/8-11-1.1 through 65 ILCS 5/8-11-1.4)?”

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Referendum

To support this project simply vote

YES

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Referendum

• The increase in sales tax will not affect any business that sells titled vehicles and/or equipment.

• It will affect any other business that sells items at 6.25%. They will be required to increase their rate to 6.75%.

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Time Line• If the referendum passes, the new rate will be

implemented no later than January 1, 2008.

• A grant will be submitted in May, 2007 to the Dept of Natural Resources requesting $400,000 (maximum) in OSLAD Funds.

• The project will go out for bid as soon as the design work can be completed. (June or July 2007)

• The goal is for the Park District in conjunction with the City and the Township to complete all demolition and dirt work. They will rely on volunteer help. We hope to reduce the bid by $150,000 - $200,000 with this effort.

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THANK YOU

Thank You for taking the time to listen to the Recreation Center Proposal.

Feel free to make any comments or ask any questions.

Are you willing to sign our Campaign Form?

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Committee Structure

Steering Committee

Chair – Frank Lunn

This committee is responsible for all aspects of the referendum drive. The

chairs of all other committees make up the membership of this committee.

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Committee Structure

Blue Ribbon

Chair –

This committee will be made up of committee leaders willing to promote the recreation center throughout the community.

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Committee Structure

Public RelationsChair – Laura Spencer

This committee will be responsible for aspects relating to media, advertising, marketing, websites, television and radio.

This committee will write and develop the overall advertising campaign.

They will also design brochures, fliers, news releases, presentations and billboards.

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Committee Structure

Finance & FundraisingChair – Larry Copes

This committee is responsible for raising funds to promote the referendum. In addition, all expenditures will be authorized and managed by this committee.

This committee will also make contacts soliciting funds to reduce the debt on the building and to subsidize operational expenses.

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Committee Structure

Speakers BureauChair – Jennifer Harms

• This committee will train all speakers and make sure that all audio/visual equipment is delivered and set up for each presentation.

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Committee StructureVoter Registration

Co-Chair – Joe Bandy Co-Chair - B. J. Zeleznik

• This committee will prepare a list of registered voters. • They will also track all confirmed yes votes until the total number of

yes votes exceeds 65% of the average number of voters typically voting in a spring election.

• They will assist with absentee voting as well as the early voting process.

• Finally, they are responsible for arranging transportation to the polling place on Election Day (April 17, 2007)

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Summary List of Committees

Blue Ribbon =

Public Relations = Laura Spencer

Finance & Fundraising = Larry Copes

Speakers Bureau = Jennifer Harms

Voter Registration = Joe Bandy & B J Zeleznik

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REC CENTER DETAIL

• OUTDOOR POOL FACILITY

• 6 LANE OLYMPIC POOL– 5 Feet Deep End – 3.5 Feet Shallow End– 75 Feet Long & 45 Feet Wide– Perimeter Edge – 230 Feet– 3375 Square Feet– 13,500 Cubic Feet (101,000 gallons)

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REC CENTER DETAIL

• OUTDOOR POOL FACILITY

• DIVING WELL– Attached to competitive pool– 30 Feet Wide (Room for 2 Boards/Slides)– 10 Feet Deep (1M Board & platform 10’ high)– 30 Feet Long (Allows for 1/3 Slope to 5’ pool)– 900 Square Feet & Perimeter Edge 90’– 8,000 Cubic Feet (60,000 gallons)

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REC CENTER DETAIL

• OUTDOOR POOL FACILITY

• SPLASH POOL– Zero depth entry concrete dish– Maximum depth 18 inches– Irregular natural form– 1200 Square Feet (30 X 40 area)– Perimeter edge – 140 feet

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REC CENTER DETAIL

• OUTDOOR POOL FACILITY

• ADDITIONAL DECK SPACE– Spectator deck at West side (20 X 75)– Sun deck north of spectator pool (20 X 100)– Sun deck all around splash pool (8 X 140)– Additional Expansion (1000 square feet)

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REC CENTER DETAIL

• INDOOR FACILITIES• Lobby – 800 square feet• Gym – 75 X 115 8700 square feet• Track – Around court 3600 square feet• Fitness Center – 2000 square feet• Activity Room 1 – 1600 square feet• Activity Room 2 – 1600 square feet• Mechanical Areas – 3000 square feet• Interior Pool +Jacuzzi 3200 square feet• Locker Rooms – 2000 square feet• Concession area – • Administration area – 350 square feet

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REC CENTER DETAIL

• INDOOR FACILITIES

• Gym– 75 X 115 (One full court with run off)– 8700 square feet– Multi-purpose surface

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REC CENTER DETAIL

• INDOOR FACILITIES

• TRACK– Elevated above the Gym– 3600 square feet– Multi-purpose surface

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REC CENTER DETAIL

• INDOOR FACILITIES

• INDOOR POOL– 32 X 75 (2400 Square Feet)– Depth– Jacuzzi– Men’s locker room 1000 square feet– Women’s locker room 1000 square feet

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REC CENTER DETAIL

• INDOOR FACILITIES

• FITNESS & ACTIVITY AREAS– Fitness Center above Gym– Fitness Center 2000 square feet– 2 Activity Rooms (1600 square feet each)– Concession area with kitchen & seating

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REC CENTER DETAIL

• PROJECT COSTS• Site costs $ 182,000• Outdoor facilities $ 918,000• Building $ 2,700,000• Architect/Engineering $ 280,000• Furniture/Equipment $ 150,000• Contingencies $ 120,000• TOTAL COSTS $ 4,350,000

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REC CENTER DETAIL

• Project Costs – Site Detail $182,000– Demolition $ 40,000– Earthwork $ 30,000– Pavement $ 6,000– Fencing & Gates $ 18,000– Lighting & grounding $ 30,000– Shade Structures $ 15,000– Landscaping $ 15,000– PA System $ 8,000– Pool Heater $ 20,000

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REC CENTER DETAIL

• Project Costs – Outdoor Detail $918,000– 6 Lane Pool $ 303,000– 10’ Diving Well $ 173,000– Splash Pool $ 140,000– Pool Decks $ 56,000– Inflation $ 26,000– Outdoor Contingencies$ 110,000– Design/Bid $ 110,000

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REC CENTER DETAIL

• Project Costs – Building Detail $2,700,000– Indoor Pool & Jacuzzi– Gymnasium– Fitness Center & 2 Activity Rooms– Concession area with Kitchen– Men’s & Women’s Locker Room– Elevated Walking Track– Elevator & Administrative area– Mechanical & Storage

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REC CENTER DETAIL

• OPERATION REVENUE• MEMBERSHIP $ 110,000

– Family $300 X 250 = $75,000

– Couple $250 X 100 = $25,000

– Individual $150 X 50 = $ 7,500

– Student $100 X 25 = $ 2,500

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REC CENTER DETAIL

• OPERATION REVENUE

• ADULT LEAGUES $6,000– $125 Per Team X 48 Teams = $6,000

• DROP-INS $5,000 ($5,040)– Half Day Gym $1.50 X (2X7X48) = $ 1,008– Half Day All $3 (4X7X48) = $ 4,032

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REC CENTER DETAIL

• OPERATION REVENUE

• Program Fees $ 69,000– Activity Rm 1 ($50 X 2 X 7 X 52) = $ 36,400– Activity Rm 2 ($50 X 1 X 7 X 52) = $ 18,200– Swimming = $ 14,400

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REC CENTER DETAIL

• OPERATION REVENUE• Concessions $ 10,000

- Sales $833 per month X 12 = $10,000$10,000 Annual Sales / 48 = $ 208 per week

Private Leases $ 27,000- Public Entities $15,000- Champion Fitness $12,000

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REC CENTER DETAIL

OPERATION EXPENSE Wages: $111,500 Full Time 1 $ 38,500

Executive Director

Part Time $ 55,0006000 Hours @ $9 per hourFacility would be open 5824 (16 Hrs Day)

Seasonal $ 18,0002250 Hours @ $8 per hourFacility would be open 1176 (12 Hrs Day)

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REC CENTER DETAIL

OPERATION EXPENSE Employee Benefits: $ 22,300 Health Insurance $ 9,000 Retirement $ 3,000 FICA $ 8,600 Sub & Associations $ 200 Conferences $ 500 Training & Uniforms $ 1,000

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REC CENTER DETAIL

OPERATION EXPENSE Insurance: $ 6,700 General Liability $ 2,000 Commercial & IM $ 500 Umbrella Liability $ 500 Property $ 2,000 Workers Comp $ 1,500 Unemployment $ 200

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REC CENTER DETAIL

OPERATION EXPENSE Maintenance & Repair: $ 15,000 Equipment Repair $ 1,000 Structure Repair $ 1,000 Contract Services $ 500 Equipment $ 8,000 Equipment Rental $ 2,000 Capital Projects $ 2,500

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REC CENTER DETAIL

OPERATION EXPENSE

Utilities: $ 46,500

Ameren (Electric) $ 19,000

NICOR (Gas) $ 22,000

Water/Sewer/Rf $ 2,500

Telephone $ 2,500

Internet $ 500

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REC CENTER DETAIL

OPERATION EXPENSE

Other Expenses: $ 23,000

Office Supplies $ 4,500

(Postage/Advertising/Supplies)

Chemicals $ 7,500

Miscellaneous $11,000

(Vending/Operating Sup/Misc)

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REC CENTER DETAIL

DEBT SERVICE

Alternative 1: Financing $3,100,000 over 20 Years at 5% interest will require annual debt service of $ 248,503.56

Each $100,000 in initial debt reduction will reduce the annual payment by $8,000.

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REC CENTER DETAIL

ALEDO REVENUE FACTS1. Annual Membership Revenue $ 190,7502. Annual Program Revenue $

58,5003. Day Passes $ 4,8504. Corporate Memberships $ 33,0005. Concessions & Rentals $ 5,000

TOTALS $ 292,100* Donations & Endowments $ 52,000

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REC CENTER DETAIL

ALEDO EXPENSE FACTS

1. Adult, Aquatic & Youth Exp $ 62,747

2. Gen Admin Exp $120,493

3. Building Maintenance Exp $ 39,000

Total Like Expenses $ 222,240

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REC CENTER DETAIL

SLIDE CHANGES1. Sales Tax effective date 1/1/082. Operation Expense re-class3. Additional Detail Slides (Ops Exp)4. Aledo Detail Slides5. Debt Service Detail Slides6. Sales Tax Question7. Growing Sales Tax Revenue Stream8. Other Debt Service Capital Sources9. Other Operation Revenue Sources

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REC CENTER DETAIL

• OTHER OPTIONS – DEBT SERVICE– Fundraising

• Our goal would be to raise the minimum of $100,000 to buy down the initial debt. In addition, we would like to create a 501 (c) 3 for donations to the facility. An endowment could be created with the interest pledge to assist with ongoing maintenance of the facility.

– Naming Rights to the facility• For a six figure donation, the facility would be named for the

donor.

– Naming Rights to sections of the facility• For a pre-determined amount, a specific section (ei. indoor

pool) would be named for the donor.

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REC CENTER DETAIL

– OTHER OPTIONS – DEBT SERVICE (Cont)– BroMenn & State Farm

• Options include lump sum donations for naming writes, community support and advertising/marketing.

– Brand Name Advertising (Pepsi – Pioneer)• Options include lump sum donations for

advertising/marketing.

– Utilities (Ameren & NICOR)• The local utility companies have programs designed to

provide financial assistance.

– Sports Companies (Wilson – Nike)• There are numerous advertising/marketing opportunities.

(Especially for (sports/athletic) companies.

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REC CENTER DETAIL

OTHER OPERATION REVENUE OPTIONS– * Lease with LeRoy Schools

• The Le Roy school district could lease gym space to cover overflow practice needs. In addition, they could use the facility for team swimming practices and all types of physical fitness classes. The lease could be an actual cash arrangement or services or a combination.

– * Lease with BroMenn & Champion Fitness• At this point, we know that BroMenn and Champion Fitness

are interested in lease agreements to use dedicated space within the facility to provide services to the patients.

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REC CENTER DETAIL

OPERATION REVENUE OPTIONS (Cont)

– * Renting the Gym space• The gym will be designed so it can be used conventionally as

a gym with options to rent for special community events that require a larger space. This will fill a void in the community and generate some revenue.

– * Annual Fundraiser• The RCA could manage an annual fundraiser to generate

additional revenue. This could be structured like the spring athletic committee fundraiser. Potential for $10,000 to $30,000 in additional revenue.

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REC CENTER DETAIL

OPERATION REVENUE OPTIONS (Cont)– * Corporate Memberships

• Companies like Pioneer, Permabilt (Hundman) may want to purchase a specialty membership for employees and families.

– * Merchandising• A variety of items could be sold at retail.