Airway Heights park board hears AHRC revenue shortfall, staffing and marketing analysis

Airway Heights Park Advisory Board members on Nov. 7 heard that the AHRC has missed membership revenue targets and faces modest budget pressures heading into 2025.

Parks & Recreation Director J.C. Kennedy told the board that membership counts fell from 1,057 in September to 1,040 in October and that, as of Oct. 31, the department had realized 86.2% of its projected total revenue goal for 2024. Membership revenue was reported at 81.19% of target, leaving a $31,942.35 shortfall relative to projections. Sales tax revenue for the period was $35,824.25; AHRC cost recovery year‑to‑date was 83.96% and the AHRC general‑fund subsidy year‑to‑date was $290,794.64, which staff noted was $187,767.06 less than the same period in 2023.

Kennedy also presented a staffing analysis showing that the pre‑opening consultant profile had projected three more full‑time positions than the current staffing model includes and that the department has “a significant number of middle managers,” which staff flagged as an efficiency concern. He noted historical wage and subsidy figures and said operating the facility had cost taxpayers $143,570.72 less year‑to‑date than an alternative scenario without the recreation center and that actual subsidy figures so far in 2024 were well below an early consultant projection of $1,130,545.00.

On membership trends, staff (citing data compiled by Mr. Peacock) provided a breakdown of cancellation reasons collected in 2024: moving (168); seasonal (45); child care (4); cost (42); price increase (5); accessibility (22); medical (26); not interested/using (117); other (87); and no reason given (157). Kennedy said September and October were the first months since tracking began in which membership revenue goals were not met.

The board also reviewed a marketing analysis comparing 2023 in‑house and print efforts with work done by Ellis Media in 2024. Marketing expenditures from January through September 2024 totaled $37,603.90 compared with $19,849.64 in the same period in 2023; for April–September (the period Ellis was engaged) 2024 spending was $36,776.48 versus $18,814.29 in 2023. Kennedy said Ellis emphasized the effectiveness of a 50%‑off promotion, but staff flagged that revenue goals were missed in recent months despite higher marketing spending.

Kennedy presented estimated incremental staffing costs to reopen the facility on seven holidays (Martin Luther King Jr. Day, Presidents Day, Memorial Day, Juneteenth, Labor Day, Indigenous Peoples Day and Veterans Day). The total estimated added staffing cost across those seven holidays is $10,398.26; Kennedy said Mr. Tripp requested those expenses be included in the 2025 budget so the facility will reopen on those holidays next year.

Looking ahead to the 2025 budget, Kennedy outlined projected cost‑of‑business increases to absorb: a 2.35% part‑time wage increase (~$16,082), full‑time step increases (~$27,703), a proposed 3.3% cost‑of‑living adjustment (TBD; ~$23,114), and an 8% increase to benefits (~$26,476). He listed health‑plan changes (Asuris +7.3%, Kaiser +8.2%, Willamette +6.9%), and summarized the total cost‑of‑business increases to be absorbed in 2025 as $103,775.

Procedural notes: the board approved the meeting agenda (motion by Don Mitchell, second by Lori Wood) and approved the Oct. 10 meeting minutes (motion by Gregory Webb, second by Lori Wood). The board later approved Resolution PB24‑02 (see separate article).