Council hears updated ARC pro forma work as parks staff seek programming to narrow operating gap

Finance staff reminded council that the Aquatics and Recreation Center (ARC) was expected to run operating deficits in its early years and reported a FY27 ARC revenue projection of about $2.2 million against estimated operating expenses of roughly $3.07 million. "We proposed that revenue to be 2,200,000... and now we're looking at 3,066,000 in expenses," finance said during the presentation.

To improve revenue estimates and identify programming that can close the gap, staff recommended hiring a consultant for a pro‑forma and added $50,000 in professional services to the ARC budget. Council members asked for clearer public communications about the ARC shortfall, programming plans, and whether rec-center offerings shifted to the ARC meant the city had actually lost revenue or merely reallocated it; Mayor Pro Tem and staff stressed the figures reflected a shift of users and that better programming is the primary lever to grow recreation fee revenue.