Fiscal Year 2013-2015 Special Budget Meeting

HONORABLE MAYOR AND CITY COUNCIL Subject: Proposed FY 13-15 Proposed Policy Budget Date: June?, 2013 Page 16 pools by $1.00 (from $5.00 to $6.00), and a 10-swim pass would increase be increased by $10 (from $40 to $50). While it was mentioned in the May 13 Supplemental Memo that it would be difficult to estimate the number of frequent swimmers that would opt to buy a 30-swim pass, staff has developed a costing with an assumption that half (50%) of the total of those individuals who purchased the 10-swim pass in the past year will opt for the 30-swim pass instead. With that specific assumption in mind, as illustrated in the table below, this will result in an operating loss of $17,888 on an annually basis. This, in turn, will cause the need for a change in the program or that additional funding will need to be identified. Please refer to the below table for detail: 10- *^*No. of Per Swim 30-Swim Revenue @ Passes Pass Pass Pass Revenue @ 30-Swim Passes Sold Rate Rate Rate 10-Swim Pass Pass OPR Proposed Rate for 10-Swim pass 1,193 $5.00 $50.00 $150.00 $59,625 $178,875 ^'¥roposed Rate for 30-Swim pass • 1,193 $4.50 $45.00 $135.00 $53,663 $160,988 Variance 30-Swim Pass vs. 10-Swim Pass 2^85 ($0.50) ($5.00) ($15.00) ($5,963) ($17,888) (1) Values are proposed, based on the initial question in the May 13 Supplemental Memo (2) Total Number of Passes (2,385) represents the number of 10-swim passes sold in the prior year (3) Assumption is that 50% of those who bought the 10 swim pass would opt to purchase a 30 swim pass However, it should be noted that if more than 50% of total individuals who buy 10-swim passes opt for the 30 swim pass, this would decrease the loss of anticipated revenue. As such, staff has calculated that if approximately 53% of the total of those individuals who purchased the 10 -swim pass in the past year opt for the 30-swim pass instead, this in turn, would present a relatively close to cost neutral solution, which the anticipated loss of revenue would be $11.00 in total. Please refer to the below table for detail: <^*No. of 10 30 <^*No. of Per Swim Swim Revenue @ Revenue @ Passes Pass Pass Pass 10 Swim 30 Swim Passes Sold Rate Rate Rate Pass Pass OPR proposed Rate for 10 pass 1,130 $5.00 $50.00 $150.00 $59,625 , $169,466 ^'^Proposed Rate for 30 pass 1,255 $4.50 $45.00 $135.00 $53,663 $169,455 Variance 10 Pass vs. 30 Pass 2385 ($0.50) ($5.00) ($15.00) (-$5,963) ($11.00) Values are proposed, based on the initial question in the May 13 Supplemental Memo Total Number of Passes (2,385) represents the niunber of 10-swim passes sold in the prior year