001posted. >> Okay. All those in favor? >> Okay. Any opposed? Okay. Now, the motion passes. Um it is my pleasure now to um turn the meeting over to Mayor Bridget McAndrew who's going to do this evening's recognizing our own, which is something we do at every board of education meeting recognizing our students. But tonight is very special because they are students that we actually share with the city. So, Mayor McAndrew, >> I um am very excited to be here. Um I think that there was I think somebody had reached out to one of our board members um that there might have been I know that both boards always provide a time for public comment. Um and we usually do that right at the beginning. So, if there is somebody um here from the public that
002wants to address both boards on an issue that's not necessarily on our agenda, um you're welcome to come forward now. Is there any public comment? >> Oh, for our board. >> Okay, got it. Okay. Just wanted to make sure. >> Okay, great. So, um I am excited to be here. Um I uh can't believe it, but um I became mayor in April, so it's my first year leading the mayor's youth advisory council. Um and if any of you doesn't know, it's a collaboration between the city of Clayton and the school district of Clayton. It's designed to encourage high school students to become active in the community by participating in local government and building a great greater capacity for civic participation. And I think we can all agree that more than ever we need all of
003you to go out and become active in your communities now and when you grow grow up. Um so uh generally the program occurs throughout the school year. It's juniors and seniors. Um we meet on a monthly basis and um each of the students have picked a city committee. So that's parks and wreck um the equity commission um the plan commission ARB. Some will come to board of alderman meetings and then some will also go to sustainability meetings. So they'll go to those meetings on a monthly basis which is something we started a few few years ago which I think has been great. Um, and then we're also they'll take tours of city departments um and work on a community project. So, I am going to um go up to the middle of the room and
004I'm going to announce each of your names and you guys are going to get a certificate [Applause] Just [Applause] There's [Applause] Good morning. [Applause] Are you telling [Applause] Gabriel. [Applause] You guys are welcome. Learn how to balance a budget. >> Okay. Congratulations again to all of the students on the Mayor's Youth Advisory Council. Thank you for being here. Um, agenda item three is the Clayton Recreation, Sports, and Wellness Commission, the CRSWC. And I'm going to turn that over to Tony, who is the director of parks and Thank you. Do I have a clicker? >> Great. He'll follow me. All right. Well, again, thank you everybody for coming tonight. For those of you I think I know almost everybody here, but if I don't, my name is Tony Saring. I'm the director of parks and recreation
005for the city of Clayton. So, tonight we're here to talk about the center of Clayton, um what our impact is on the community and our budget for FY26, our proposed budget for FY26, which would start October one. So, um so, first of all, we'll kick right off and who we serve. If you haven't had a chance, I won't go through every single number. Um it is in your packet though, but we currently um have about 8,000 just over 8,000 members and those 8,000 folks swiped in over 239,000 times at the center of Clayton the last um fiscal year. So we're pretty excited. Um we know that number will still grow because we're still in the last month of our fiscal year, but we're pretty excited on on how many members we have coming through our
006doors. Um most of those folks are residents. About 5,000 of the 8,000 people are residents. Um, and really we're also excited that we had um almost 4,200 people who are non-residents uh come to the center of Clayton and pay a daily fee. Um, so they use anything from the pool to the fitness center to the basketball courts um things like that as well. So um we also have 802 high school students the last fiscal year um who used the center of Clayton. They came over 10,000 times, swiped in over 10,000 times during the school year. Um so that's a really great number that we like to see. We want to see the students on our campus and we're glad that they're they're really utilizing our facilities. Um if you don't know, we also do a
007free seventh grade membership uh for school district students and there was um 28 students last year and they swiped into at the center of Clayton about 720 times. So they're not there every single day. They have to make a concerted effort to come over to the center, but we are glad that they do come. And our goal with that is to try to get those folks to convert uh or get their parents to convert to a a youth membership or a family membership um so that they utilize the center and also get them to know the center of Clayton what it's about so that when they are a freshman um they kind of know the ropes, they know where to go for the locker rooms, know where to go for the basketball courts and and
008the fitness equipment as well too. So um we're pretty happy um with our numbers and how they've been growing. Um if you focus on uh the youth, we're proud to say that we had 31 kids that um received over $5,300 in scholarship last year. And then that number we do expect to grow. Uh thank you to Kathleen Gund and Valerie Eagle who spearheaded a scholarship review committee for both the the school district, I'm sorry, for both the parks and rec commission and the CRSWC. And they um we will be expanding that program to allow for uh more students to participate. And also, I know we've been working with the district's communication staff to get the word out about that scholarship program and the new updated uh not regulations uh provisions for that will start on
009October one as well too. So, um we talked about this with both the the center and the city parks and rec staff and the it's the same uh formula that we use for both of those. So again, trying to attract more students, more families um who are in need to that program as well too, which is sponsored by the um Clayton Community Foundation and they were also supportive of us expanding this initiative as well too. So um we're really excited about that. Um we had 162 um high school students come through um for their athletic programs last year. That is only the ones that use the center of Clayton. So it doesn't include soccer or football, things like that, the outdoor sports. It's just the indoor sports. So they as you know they use the
010center for their primary athletic activities for those indoor sports. Um and we are pleased to host those folks as well too. Um another positive note is last year we had 172 families use the kids center and it was significantly more attended um 3600 hours because we did offer evening kids center hours as part of the family membership. Um again it's free included with your membership. So, we did have a significant boost in our usage of the kids center last year. Um, with that offering as well, um, we had about 566 campers use our the center of Clayton camp programs. That's anything from chess wizards to indoor swimming camp, basketball camp, volleyball camp. Um, we did have a few less participants this year because we did not offer winter break camps because of the way the
011holidays fell. It was right in the middle of the week, so it wasn't really conducive to offer a full week of programming. But um still pretty strong numbers and we're happy with that. Um I'm pleased to say that um everyone who walks through the door with the Center of Clayton membership um has free fitness classes, land fitness, Pilates, yoga, everything is included for free right now. Also water fitness classes. Our land fitness classes have significantly uh increased in participation. Um we have about um we're now offering about 10 programs less than we did um at the start of the pandemic. We have 50 classes a week. So, pre- pandemic we were at about 60. Um, so we're looking to eventually inch up in that direction. Um, we do have uh over 500 different types of
012classes. Um, and uh I'm sorry, there were 500 different people that participated in those classes. Yeah, that would be that would be a lot. 500. Um, yeah, and we're always looking for new programs. So, um, we have added some some different programs that we haven't had before. a mixture of like um kettle bell and cycling and uh eccentrics things like that. So we are growing our participant class and we have um about 60 more participants each week now than we did this time last year. So um the inclusion of of uh fitness programming in the membership has certainly boosted the membership and boosted the participation in the programs as well. Um, as far as personal training, I'm pleased to report that we had over 200 personal training clients uh last year and we are inching
013our way to um as far as revenue goes um a 10-year high in personal training revenue. So, um we have some really really great trainers right now. They're really active. If you see us on Facebook or Instagram, we do Friday trainer tips. Um so, they encourage folks with different workouts. Um and we have some some trainers that have actually expanded their availability because they were so busy um that they couldn't meet the demand of all the clients. So uh we are expanding some of those folks and we have some new hires as well too. So that's an area for us that's really doing well. Um as we talked about earlier, our rentals are also doing well. And just for rentals, we had uh over 21,000 folks come into the center of Clayton specifically just for
014a rental. whether it be an after hours rental, a birthday party, um a basketball practice rental, anything like that. So last year we had quite a few few more people come in our to our facility just for rental purposes, which is nice as well too because it gets them exposed to the facility and you know if they want to come and get a membership, we like that as well too. So um so preparing for FY26. Um so in your packet everybody should have seen um the proposed um fund summary for uh the estimated year end for uh FY25 and then also the proposed budget for FY26. So the adopted budget for uh FY25 had u predicted a total deficit of 660,000. Um we are predicting that we will end at about 509,000. Um yeah that's
015the right slide. Um we uh the operating budget we are doing about um we are doing quite better or quite under budget I guess in that uh we did have four full-time positions this year that were vacant during some part of the year. So that does account for a lot of the personnel savings that we experienced in FY25. In FY26 we have budgeted for all of those full and part-time positions uh to be fully staffed all year long. So that is one of the the main reasons that we were um significantly under our expenses in the operating budget for FY25. And then um as far we will talk a little bit more about this, but as far as capital um requests that fluctuates from year to year based on the projects that we have planned
016and we work with Jim Bernell and his um facility services staff for that and we can talk a little bit in a couple slides about the uh projects that we have that are upcoming. Uh the next slide is really just um our accounting report and we tie that with the audit every year. So just want everybody to look and see that we do tie that with our audit. Um and uh Valerie works with uh John Brazil on that every year as well too as along with the city finance department as well. So capacity um we've talked a little bit over the last couple years. We've really um looked into what is our capacity at the center of Clayton. what do we think the maximum number of people that we can have have a membership or
017be in the facility at one time? And really, it's an industry standard. Um, if you look at how many memberships you're trying to sell, so if we were to look at our facility and every single piece of cardio equipment were to be full, if there were eight people in every single lap lane, if the maximum number of people were at every in the gymnasiums every single time, what is our maximum capacity? So um in the yellow bar you will see what our current capacity is. Um the orange is if we are at 10 times. Now what that means is that the industry help me explain this. Sorry. >> What we're looking at um right now is the industry standard is when you're trying to figure out how many memberships you want to sell or how
018many memberships would kind of you would max out at your fitness facility. You want to try to figure out what Tony said is how many people at one point in time if every inch of our facility was being used, how many people would be in there? And if memory serves, it was around 600 people. And then what you take is you want to be between 10 times that number to 20 times that number. And that's how you figure out how many memberships you want to sell. So what we did is we looked at in units obviously adult, senior, and youth. Those are single people. It's a single unit family. We figured out what our average family size was and I think it was 3.5. So we can figured out how many to be at 10
019times how many units we would need to sell of each category. Um and when we met a few years ago, we decided we wanted to be in between that 10 times and 15 times capacity as our target goal for membership units. So you can see right now we are at a little slightly over 10% capacity. So which I think is is a great number to hit. So we want to kind of strive for that I think right now that 15% capacity. So we would kind of max out at four 4,500 units. That's not members. It's not people. It's units of membership. And that I think when we get to that point then as Valerie said a couple years ago um and Jason you might recall this when we talked about this we were looking at
020the 10 to 15 uh or 10 to 15 times capacity. So, we thought that when we get to 15, we need to look and see, does our facility seem too crowded? And if it's not, then maybe we're looking at trying to get at 18 20%. Or really evaluating and seeing where we are as we get incrementally closer to that 20%. Because 20% is really, I guess, the average industry standard. Um, but we need to make sure that we're also not overcrowding our facility as well because 10 15 years I would say probably 15 years ago we heard that the facility was too crowded. So we need to be mindful of that as we're pushing forward but still we have believe we have the capacity right now to push forward to get to that 15 times
021number. >> I think it's also >> so these are Oh, I'm sorry. Go ahead. >> I'm sorry. These are you said membership units. Some people high school students don't have a membership, are they captured? >> Correct. So, these are what I would call paying memberships. >> So, the high school, they don't they're not anyone who doesn't have a paying membership is not included in this. >> Correct. Correct. >> So, these are um great numbers to see and important ones to track. I'm wondering um do we have the benefit of any history to look back at on this? Did we ever track the data that way that we look historically on how we've done? >> We have not. Only in the last couple years. Yeah, we only started doing this once we kind of had determined
022that this was one of the Yeah. targets we wanted to hit, >> but we have those numbers. We can create that. >> It would just be interesting to see if there's been much variance in that. So, >> yeah, that's something we can go back and track. >> You have to moderate the formula for capacity based on the number of hours that your center is open based on whatever the baseline is for the formula. >> They don't particularly go by number of hours that you're open. that wasn't something that we saw when we were looking at this. >> I would think that would make a difference. Some gyms are open 24 hours, some gyms are open like 6 a.m. until midnight, >> right? >> So, I would it doesn't surprise me that maybe when you get
023to 15x, that's when you're going to cap out just because of the nature of the hours. >> Sure, we can look into that as well as one of the factors. >> Great. Um well currently right now um we have a total of uh 3124 membership units which is not again the number of people. The number of people as of July 1st that we had that had a membership was 8,09. Um so again we have grown since COVID. So that's really we're we're looking at the rebound since CO and also if you recall um right in the middle of CO is when we did our facility renovation too. So we are preparing um for I guess a much larger expansion of our membership numbers but um that happened. So we're we're plugging on from there as
024well. >> Is there any reason why there's a drop year over year membership? >> It's going up. Sorry. >> Units went up individ uh people in a family membership that's fluctuating. If you look at the residency by type and by uh membership, you'll look that really um residents are still our largest category, but it is followed closely by uh non-residents and corporate as well. These I would say this pie chart on the left that has remained fairly consistent probably over the last 15 years. It's it's about the same percentages for resident, non-resident, corporate. Um and then uh we have adult versus family, senior and youth. Youth is our smallest category. Um and really we're trying to capture those folks who um want to come to the center on evenings and weekends if they're Clayton students
025because right now their membership only is good during the school day and also non-resident students who live or yeah non-resident students who live close by um will want to come as well too. So, we do try to promote those in the summer as well, but really by far and away, um, our adult and our family are the largest categories that we have, too. So, this is going to be hard to see on the screen, but it's in your packet, but we did want to let you know that every year as part of our budgeting process, we are looking at our competition and what they are charging um across the board. We look to see do they charge um you know adults, family, youth, senior. Um you know some of them have much more varied pricing
026scam uh pricing schemes. Some of them might have two senior family or just a two adult family, things like that. But we broke down the the main categories for what they have. So what you'll notice is that the center of Clayton is on the higher end of some of these fees. Um, one of the other, uh, facilities that's fairly close in price range to us is Maryland Heights, which it's a it's a fairly new facility. Um, but, you know, we have a lot nicer facilities than some of these these places. So, I do think we can charge more uh because we have four gymnasiums, we have two pools, not everybody has that. Um, but, you know, I think we just wanted wanted you guys to know that we look at this every single year. We
027want to make sure that in some cases we're not pricing ourselves out of the market. I think with our rate increase last year, um there is a little concern that we may have done that for for non-resident families. Um but again, we're really focusing on those those uh our marketing efforts on what the center has to offer, the value that you get for your membership, all the facilities that you get at our place versus um you know, some other places are while they might be at 247, they don't have a pool or they don't have gymnasiums. Uh that's one of the things that we're going to focus on too. We're really going to go after corporate memberships this year with the understanding that we know many of these facilities that are being built locally have
028a fitness center in them, but they don't have necessarily don't have a swimming pool and they don't have um you know all their classes. They don't have the volume of classes and programs that we have with our membership. They may not have basketball courts. So, we really want to set ourselves apart for what makes us different from some of these other facilities as well too. Um but this will give you an idea of what some of the other places um in and around town. We also try to pick um facilities that are somewhat equitable to ours. We certainly wouldn't pick like pick like a really small facility that doesn't have a pool or a gym or anything like that. So most of these places do have a gymnasium. They do have pools, things like that
029as well. >> Do most of these places also offer free classes? >> Yes. That was really one of the motivations. I know the YMCA has for some time. Um, and uh, this doesn't include any private places. Um, you know, Club Fitness, Planet Fitness, they don't often want to give you their rates or things like that, but they most of those folks include uh, fitness classes with their memberships as well. >> So, Riverchase, those are all private. >> No, Riverchase. Um, actually, everybody on here, Riverchase, Fenton, got all municipal except for the YMCA. Okay. Yeah. Yeah. Okay. Um the next slide will talk about um our membership rates including inflation. So you will see in the the green line was what our membership rates were as of 2008. If you factor in inflation um which is
030the next bar which is the yellow bar. That would be what based on the 2008 rates. If you took the annual inflation and adjusted that, that would be what our rates should be or would be if you had the inflation number. Um, and then the the last column, the bar uh the orange column is what our actual rates are. So, they're pretty tracking very close to what the inflation was uh over this what is that 10 year, seven, >> eight year period. Yeah. Yeah. Yeah. So um we were concerned that you know were we uh were our rates too high based on inflation and it looks like they are right on track. So, jumping into the proposed budget, um, just some highlights. The membership this year, we did not do a membership fee increase. We
031did one in FY25 this fiscal year. Um, we are projecting to be a little bit underbudget in those membership categories. Um, but we are planning a 3% growth in membership for FY26. And we also um, we did not have a full year of our membership specialist in the at the CRSWC. we did not have a full year of that person being on board to implement that marketing plan. So we are um implementing that more I would say weekly and the the budget for FY26 would include a full implementation of that marketing plan. So we do think we struggled a little bit this year because we didn't have it have the the plan implemented for all 12 months and we want to make sure and we will make sure that that will happen for FY26. So
032that's why we did have the 3% growth, but we did not include any membership fee increase. But with that 3% growth, that amounts to about $157,000 as well. Um the membership survey, we have not done a membership survey since precoid. So we think it's very important that we included that in the budget this year because we really want to make sure that we're on target with what our members want, that we're hitting the mark with the free fitness classes, the free child care. are those the things that they want or is there something else that we're maybe missing the mark on that we can get some more feedback from those folks as well too. So we felt like that was important to include that in this year's budget. Um again we are increasing our program
033offerings and participation um with with the intent to increase the participation. Um we're adding a minimum of three more fitness classes uh as of right now. We know that we intend to add more throughout the year as well. Um and like we said, we have 60 more participants um in each class or in the classes weekly. So we want to make sure that that grows as well too. So again, making sure that people are experiencing the value for that they're paying for their membership and that they're um taking as many classes as possible and using the services that we're offering as part of their membership package. Um but I will say um our expenses are outpacing our revenue. Um really we're our revenues are up 5% but the expenses are up 10%. Um our largest
034expenses and you'll see that is personnel. So um if we were to make any significant cuts we would be cutting personnel and we would have to cut some of the services as well too. So um we watch that all throughout the year. Um we make sure that uh you know if there are is a chance that um you know we can save any money on any commodities contractual services things like that we are going to do that. um many of our contractual services. We will see if there's um any savings to be had with the district with cooperative purchasing agreements um or even sometimes with other cities. You know, if we're buying, um you know, equipment and we could split it with the city of Brentwood and we could get a better price, we that's
035something that we would consider as well, too. So, um but we always are keeping an eye on that. And then, um really some utility expenses are also forecasted to increase in FY26. Um, in particular, electric and natural gas, I believe both had about 12% projected increases. And when you're talking about a a facility that's over $100,000, uh, 100,000 square feet, um, that will certainly make an impact as well, too. We keep hope hoping for milder winters and milder summers, and that doesn't seem to be happening. So, um, we run our electric a lot. If you've been up in the fitness center, you can attend attest to that and of how folks would like that to be cooler upstairs. So, um you know, but we do adjust those things um where we whenever we can. >>
036You should tell them the heat's good for their muscles. >> Yeah. Yes. Yeah. Just like parking further away from their front door. People don't want to park far away from their front door when they're coming to work out. Yeah. Uh when you look at our revenues, um by far and away our largest source of revenue is annual passes. So, that continues to be a focus of ours. Um program revenue is next. So, um any swim lessons, any camps, anything like that. Um then the contributions, daily passes, and then we do have some miscellaneous revenue as well too from our tenants that we have at the center of Clayton. Um and as I mentioned, as far as expenses go, uh personnel is about 43% of our expenses uh for our budget. And then in contractual services,
037um that is 53% but in the contractual services um the school district person includes the school district personnel because that's a contract and the MPM contract for lifeguards at the center of Clayton. So those although those show up in contractual services about $900,000 of that contractual service is really staffing. It's um the school district's maintenance staff and it's the MPM lifeguard. So, um, again, by far and away, our largest expense really is personnel. And we are very lean on commodities. We really don't buy things unless we have to. Um, and then we also try to do the same thing on our our contractual services as well. And then each year, if you don't know, each year at the end of the year, we do reconcile with MPM uh for lifeguards for any shifts that they
038perhaps missed or um, you know, if the center was closed, like for a snow day, things like that. We'll reconcile that as of September 30th. We reconcile that contract with them and they will um give us any credit that we would need off of our last invoices if there's a a credit to be had. Like I said, if they had missed shifts, if they if we didn't open, things like that. >> Tony, I I think I'm just confused. So, the both city and school district staff work at at work with center, right? >> Work at the center. Yes. >> So, Just the school district district staff is in the operating. >> No. Um in the green section, the personnel expenses, that's all the full-time city staff and part-time city staff that work contractual. >> Correct.
039So, it's all got correct. >> So, wait. Midwest Pool Management makes you do the labor reconciliation. >> No, they do it. They do it, but they provide it. We work with them and they provide it to us every year and they say, "This is how much we should owe them." So, do you pay for the labor up front and that's how you get the credit? >> We pay for the labor at the beginning of each month. Okay. >> Yes. Yeah. Not the whole year's contract up front. We pay it monthly and then on the last month of the year, we don't pay that when and they will do the >> do the reconcil um we do have some earth and capital expenses, equipment replacement and capital expenses that are upcoming. Um, we replace annual cardio
040fitness equipment. That'll be about $40,000. What we do every year if you don't know. Um, some of the pieces that aren't working as great, require a lot of repair. Um, maybe just aren't at their top peak performance, will replace those every year. Um, and Molly has a system. She looks at those. She'll she rotates the equipment around so it gets different use. Because if you don't know, pieces in the middle of the cardio room get more use than the pieces on the edges. She'll move some of those around. so that they try to get equal use, but we do replace those cardio pieces every year. Uh this year we have $40,000 budgeted for that. Um $33,000 is technology projects that the city of Clayton uh provides for us. Um and then this year we're scheduled
041to have the west parking lot striped and sealed. Um we also are working with um Mike for the school district to get the uh security camera system upgrades similar to what the district has just done. So, we're planning on we included that in our budget. And then the other large ticket item that we uh included in our budget this year was for the pool deck for both the competition pool at the and the leisure pool. If you've been in those pools, you know that the the the product that we used when we went over the surface during the renovation. Um it's like an epoxy product. It has not lasted. Um it's wearing away. In some cases, quite candidly, it looks moldy, but it's not. We've tested it multiple times. Jim and his staff have done
042that. Um, so it it's really just wearing away. We think it's just was not a great product. So, we have a a solution for that. And then also to uh repa replace the pool filter media, which is a fancy way of saying to replace the sand that goes through our um our pool uh system that that helps the filter filter out all the dirt and debris. So, um that is due for upgrade this year. Um, I think it's important to note that really, and we talked about this with the finance committee, that the majority of these projects are public facing. They're um there's no um the pool filter media probably helps a little bit with the water quality, but everything that we put in this year's budget really is public facing. Um, some of the
043smaller projects for interior were a renovation of the mind body room, which you might know we took that over probably 20 years ago from the school district when it used to be a health classroom. It still looks like a health classroom. We just happened to do um to do yoga and spinning and that and there. But we are going to renovate that so it looks more like a fitness room. Um, some of the doors in our family locker room have also not held up from the renovation. So Jim has a plan to replace those. But everything else we're doing is public facing and really um for the benefit of the members. So, uh that was really what we focused on as far as Earth and Capital this year. Um there were a couple other things
044that we decided could wait a couple years, scoreboards, things like that that were still functioning fine, but maybe there was a little dent in one of them. We pushed those back and what we do every year is we evaluate our urban capital. We sit down with Jim Bernell and we say, "Okay, this is coming up for replacement this year. Do we think it needs it? should we um try to push it off? Things like that. So, this budget is really a reflection of everything that we felt was public facing um and needed to be done in FY26. >> But having said that, you're not deferring any maintenance. >> No, no, not any >> not public facing. >> Um not anything that is um correct. We are not deferring any maintenance. Correct. >> Deferred. >> We
045deferred a a scoreboard like the scoreboards. They have a useful life, I think, of 10 years. They were up for renew up for replacement in 26 and we said, "Well, they're totally working fine." One of them has a dent on the the grading around the scoreboard. Other than that, they're perfectly functional. We felt like that could wait a year. >> Meeting room, the tables, chairs for the meeting room, we also deferred. >> Yeah, we felt like those could wait. They weren't in dire sit, but there's nothing mechanical that we deferred. >> And how old are major systems like HVAC roof. >> Well, the HVAC system um as uh you might see in a couple slides, we have that replacement and I believe Jim, those are for the gyms, correct? The gymnasium. Yeah, the gymnasium HVAC
046systems um are probably what 20 years we think. >> Yeah. During the renovation, we replaced the units on top of the pools, but we did not replace the units on top of the gym. So that's what we have for FY30, which is when you look in that packet, that was why that year was so much higher. And that u to your question is probably the last and largest major expense that we did defer from the renovation. We tried to get a lot of those done in the renovation. um our tenants. So, Oasis still remains a good partner for us up on the second floor of the center of Clayton. Um you know, they pay us rent, which is about 50 thou just over $51,000 annually. Um and during their off hours, so after 3:30 and
047on the weekends, we can use their room for rental purposes. So, we do try to put some of our smaller rental groups up there to generate some more revenue as well. Um Subway is still a popular choice for um people who visit the center. The high school students are over there. So they, as they said to me yesterday, school's back. I said, oh yes. Um, so yeah. So that's nice. And we get a uh percentage of their sales uh based on $180,000. So we're projecting that to be about $8,000 um this year. And then finally, Clayton Community Foundation um is our last tenant. They have the small offices that are um on the uh over by where the meeting rooms are, kind of underneath the stairs. We carve that little space out for two reasons.
048one for the CCF offices and the second reason was to prevent people from sneaking into the center of Clayton by cutting to the left and going around that hallway. That has worked. Um, but they pay us um a nominal amount each year, just over $2,100 for use of those rooms as well. So, so all those tenant uh tenant contracts are going going very well. Great. All our great partners to work with. Um so our final last or our last slide our last couple slides um again is just a restatement of the estimated uh fund summary for FY25 and FY26 again with those some of those larger capital expenses. We are looking at a total budgeted proposed budget um deficit of just over $74,000. Um again we will do everything within our power to make that
049less if if we have the opportunity as the year goes along. So um we are we do pay attention to that on a regular basis. If you look at the cost recovery uh the cost recovery um with the the parent contributions for FY25 we're estimating will be at 94%. Um for FY26 we're proposing 89%. um without the parent contributions, our operating fund um is looking at an estimated 85% cost recovery uh for FY25 and 82 propo 82% proposed for FY26 um across all funds. So operating earth and capital um we're estimating FY25 to be at 89% um and FY26 proposed at 85% again without those parent contributions. uh 75% for FY25 and uh 73% proposed for FY26. Um and we we each year um the uh recreation management does put out a state of the
050industry report every year. Um and so it'll just gives you some of the statistics um at the bottom for cost recovery for private uh for-profit places, nonprofit and government. So, um 85% is our goal and that's that's still the goal that we're shooting for annually. Um if you look at um the cost recovery, I'm sorry, the um future year's projections, you will see again we talked a little bit about the um larger capital expenses and really um on the the bottom it shows what we think the deficit projected will be each year. Um this assumes revenue increases of about 5.7% each year including growth and inflation. Um and includes 5% um expenditure operating expenditure escalations each year. Our capital already have an expenditure escalation um each year the way the the spreadsheet is set up.
051So those were already included in the earth and capital numbers. So again, um you'll look at the big jump in FY30 is again for those uh replacement of those air handling units um over the gyms which were not done when we did the renovation. And the next slide we'll show you just kind of um if you look at the uh capital expenses are in orange and the earth expenses are in green. That just kind of gives you uh a summary moving forward of really what is comprising of our uh earth and capital and for the most part um 26 and 30 are those larger product projects next year being the pool deck replacement and the security camera upgrades and then in 30 again the air handling units but the rest of them are uh are
052really earthf earth related. Um when we say earthf every year that's going to include an annual uh cardio equipment bud replacement budget every year is going to include IT um projects and equipment and those go on a schedule as well that's given to us by the city's IT department and then again we have a large capital spreadsheet and most of these are just all the items that were coming up for replacement in these fiscal years. So, like I an example I gave is we have three sets of scoreboards at the center of Clayton for three basketball courts. Um, you know, we we took those out of FY26, but we push them to one in 27, one in 28, one in 29. Um, again, if we get to next year and we think we can last
053longer on some of those, we could push those out as long as they are still functional. We are not going to not replace things that are not functional, but we will look at these and we'll tweak them every year where we have to. Um, if there's things that need to be moved up or moved back, if like I said, if they're working or some things aren't working, then we can look at adjusting those timelines as well. So, this just kind of gives you an idea. Most of our of our replacement coming up in the next several years will be related to different equipment replacement items. >> Do you have an inflation cost assumption in these numbers? >> Yes. >> What is it? >> Uh, two to 3%. We've been on target with some of those.
054Some of them have been more, some of them have been less. So, That is my last slide. If anybody has any other questions, we'd be happy to answer those. >> On the Thank you. >> Um on the two slides up from here with the you know the deficit in orange or the >> you said that you're anticipating 5% increase in revenue as well as 5% increase in expenses. >> Yeah. Earlier in your slides, earlier in your slides, you said it was five and 10. So, I'm wondering what drove your estimation of 5% increase in expenses. >> Oh, this year, >> I heard you. >> I think I think I'm answering the right question. This year, we had a 5% increase in our um revenue projections, but we're in estimating 10% increase in for just for
05526. for the outy years. We did some research and we felt like um 5% was really that was what the research was giving us that you should average 5% inflation for the outy years. But the FY26 was more specific based on actual numbers that we had researched for projects for supplies for things like that. But for an average for the outy years um the number that we saw to use was 5%. >> But you only used two to three here >> for that was for um and capital. Yes. And some of those we updated. Yes, we only used two to 3% for Earth and Capital with the most recent numbers we have, which some of those already have inflationary increases in them. So, for example, if we knew that the scoreboard um we thought was
056going to cost $10,000, when we did the research and found out it was going to be $12,000, we put the $12,000, the newest number in there, and then left it at the 2 to 3% then going forward when originally we would have the escalator had it only at escalated up to about 10,000. Does that make sense? >> Yeah. So it increased 20% but in the forward months years you only put in the two the 3% inflationary increase >> for the thing. Yes. >> In that example >> correct? Yes. >> Okay. >> Any other questions or >> did I answer your question? >> Okay. You had spoken I think previously about a focus on the rental and I think it was 4% in one of the charts you showed us. >> Do you have any idea
057how much you hope it will increase? >> Yes. >> Sorry, wrong page. Oh, the meeting rooms we had in 2%. Is that right? >> Yeah. 2% from where we estimated >> um just the meeting rooms. That was the change in the policy was specifically related to meeting room rentals. >> Yes. Yeah. So that'll only go up%. >> Yeah, we were >> we were conservative for that. Yes. >> Do you have a vacancy rate built into your FTS? >> No. >> Your budget? >> No. >> So the four FT positions that you the four FT positions that you currently have open, which is really the difference between the anticipated spend this year and what the actual spend was. I guess the question is like have you really evaluated whether that's necessary because the the deficit year-over-year
058is close to it's 38%. >> And it would have only been like 7% which is close to your net difference between your expenditures versus your revenues. So I guess the question is I mean there's a lot of businesses now that are looking at kind of resources from a human capital standpoint and doing um more with the same number of people that may not be possible for your scenario if you're paying a lot of overtime instead. But like I guess I guess that's the question is you plan to fill fill those four positions. Do you really need to fill those four positions? >> Um I would say yes and we have already filled all four. So they were just vacant at different times of the year. Um, in the last I would say five or so
059years, we really have um looked at staffing levels and we um have one less maintenance staff person that we had previously and one less uh full-time front desk person that we had recently. So, we have replaced um at least the the the front desk position. We have replaced those with part-time individuals as well too. Yes. So, we are we do look at that. Tony, you mentioned that this year you've been without a marketing person um or a campaign has not been fully activated. >> Correct. >> So, you've got that set up for this coming year. Can you give us some highlights of what that will entail? >> Yes. So, um she is actually very excited to um tackle the corporate campaign. She really wants to get out to um the businesses in the Clayton area
060um you know, recruit corporate memberships as well. She's also been very active on um social media um both Facebook, Instagram um really promoting we have Friday trainer tips like I mentioned um and also promoting um the events the benefits of membership. Did I miss anything else? >> Focus not only on some new campaigns probably do about three or four a year but also really focusing on retention. So making sure that it's it's actually cheaper for us to retain our our members than try to go out and get new members. So, we've got like some member get a member campaigns going on uh in December. We're doing people who've had a membership for a certain am length of time. I don't remember what that is, but they're going to get, you know, a gift. We try
061to do um the classes. I think one of the big reasons that the class partition participation went up is we had kind of like a challenge, a fitness challenge to do to our current members and >> they participated at a certain level and they got they got prize. >> We had a 12 month marketing plan that was set out and hasn't been able to implement because she hasn't been here the whole 12 months. So, she would be implementing those for the months that she hasn't yet gotten to. Yeah. >> Any other questions, comments? >> I'm just wondering about corporate membership, Tony. When the center started in 2000, offices didn't have facilities >> for people who work there. Um, and obviously that's changed considerably. I'm just wondering now I think you mentioned that that positives about
062the center were a swimming pool and basketball which of course those facilities don't have. I'm just wondering anecdotally do you have any sense from corporate members is that really a distinction that would bring someone to the center and I guess my subp part is since Wellbridge has now been gone for a couple years which was pretty popular but is gone. you have any sense that you're having success attracting some of those folks who used to go to Wellbridge? Maybe because their offices didn't have corporate aspects to it. >> To answer your second question first, um I don't have the exact numbers, but I do believe we did get a good bump of members from Wellbridge who actually um had said in particular to Molly Troy, our fitness supervisor, that they didn't realize how nice the
063center was since we did our renovation. They're happy with the extra equipment. So, we did capture some of those folks. I don't know the exact number off the top of my head. Um, I think we have heard from some corporate membership folks. Um, some people don't want to work out in front of people that they work with. Um, which I understand. Um, so I think it's tracking some of those folks. It's tracking um again really focusing on what they if they're just going to take a quick jog on a treadmill and they don't care and they're going to shower and go back to their office, you know, but if they're interested in something besides like a cardio workout. So, do they want swimming? Do they want basketball? Um or do they we have a group
064of guys that rent a basketball court every Friday, I think it is, that come in and their their company works in Clayton, so they just want a court just for themselves. So, really, um I think those things are important to some people. is just finding out who those people are and getting getting to those folks. >> Thank you. >> And again, making sure that they know we're here. I mean, honestly, we still hear from people that say, "I didn't even know the center was here." So, it's again, especially if it's a newer company that's moving to Clayton, maybe from somewhere else, Emerson, I I know that they have a fitness center. But again, if they if they want the pool, if they want a basketball court or if they want to work out on incognito,
065then you know, we're happy to to make sure that they know what benefits that they have over at the center. >> Um, first of all, just out of curiosity, what happened with the babysitting >> the the care the child care after >> last was one of the things we rolled out last year. >> Oh, yeah. No, it had significant was it? Yeah. >> Yeah. Our usage almost doubled just from offering the evening child care. >> Did we get >> Okay. Sorry, I missed it. My bad. >> Yeah, that's okay. No, that's okay. >> It's a good question because >> Yeah, it did almost me. It's okay. our overall child. >> And I will also say I think we are busier than we were before we did there. There were times before we did the renovation
066we would have zero kids or maybe one kiddo and right now we're probably averaging about four to five kids a night and I think that's amazing. >> Yeah, >> that's great. Um, two quick things. One is just for the broader group to consider over time is do we start funding depreciation again? The history of our capital funds has been lumpy, right? I think this past year we I remember the big topic of conversation is do we put this much money into our capital equipment for FY25. This year it will be some not as much. I saw a couple zeros up on the relevant slide. And so if you want to smooth things out for both of our organizations to start funding depreciation, finding a pathway or some sort of a glide path back to that.
067I put that out there. The commission can discuss it and whatever. Um my my question is is it a a stated or unstated objective that we want the membership rates to keep up with inflation? Was that the point of the slide? >> No, I guess the point of the slide was really like we felt we at least were on par with inflation because some people thought that maybe we should be ahead of we kind of heard the question should we be ahead of inflation. Um are we making sure that we are keeping up with it? So I guess that was really the point of our slide. We actually were kind of on track and we didn't even know it. until we really looked into it. Honestly, >> yeah, it I mean I I I totally
068Okay, that makes sense. I just, you know, again, I know when I was on the commission, this was a hot topic. Last time we looked at the rates, you know, how aggressively do you raise the rates or not? Well, you know, it was like $4 or $6 or whatever it was. you know, if we see that expenses are growing by 10% year-over-year, you know, I would just sort of ask the commissioners to think about that when setting the rates for because I know next year will be next spring should be the time that we reconsider the rates. >> Yeah, we've been on an every other year pattern for quite a few years, you know, and if if we need to change that, I'm happy to entertain that from both boards andor the commission. Um but
069yeah, usually um if we're staying on the every other year pattern next spring is look at that. >> Okay. But otherwise, thanks. I mean, this is a great presentation. Thank you. >> Yeah, I just I mean, Tony and Valerie, I just want to say thank you. I think you did a great not only the people that live in Clayton, but the students throughout Clayton. Um, most specifically, I mean, it's startling that 800 students went into the center. Was that really like 10,000 times? >> So, I mean, I feel like it's a great place for the kids. Um, you know, revenue could be greater at the center, but Tony and Steve Hudson have an awesome relationship. So on days when it's too hot or it's rainy, Stephen can call up Tony and say, "Hey, I need
070a softball team or a baseball team to come inside or I need an extra court." So this relationship works because we're all sitting here. So I just, you know, I hope that we all recognize that, yeah, the deficit is going up, but I don't think that there's going to be a whole lot we can do to prevent that. Of course, I'm not advocating that we, you know, it's very crucial to meet every year and of course focus on the budget and have the CRSWC look at the budget, you know, quarterly. That's very important. Um, but I just hope as a group, as both boards, we really evaluate that this is a very important arrangement, not just for the city, but also for the students. So, um, but yeah, I want to thank you. It was
071a great presentation. And, um, I've I've lived here 15 years. I go to the center every week and I don't think that the center of Clayton has ever looked better. It's never looked more vibrant. It's clean. People are happy. People are excited. Um, so I want to thank you Tony and Valerie and your team because the center looks great and I think you guys are doing a great job. >> Like to thank Valerie. She did a lot for the presentation. She puts together a lot of the numbers. And I know Jim Bernell is back there. So we couldn't do it without him. And like you said, Steve Hudson and also my recreation superintendent Mickey Kaufman as well. do. So, it's all part of an welloiled machine. >> And I I'd like to echo some of
072what Bridget said was what I was about to say. Actually, Ben and I just spoke the other day about um of course looking at the budget and these numbers are important, but there are a lot of um benefits to the center for both of us, for the entire community, for our partnership that you we can't measure or quantify, right? So, I think which is I think the point Bridget was trying to make. So I think it's also worth reminding all of us about that and the reason that this partnership was created and that the center was built with both of us in mind is important to to remember and think about too. So thank you. I I wanted you almost said exactly what I was going to say, but I'm just remembering back to when
073the arrangements were made 25 30 years ago and the premise that we were serving collectively sort of our shared constituencies and um I think it continues to do that and the challenges are there with the deficit. It's a it's a certainly a community asset. >> Nina, did you have any questions or comments? >> Um I mean Definitely Clayton students like love the center of Clayton. You guys are doing such a great job. I hear about it like all the time. It seems to be, you know, a very, you know, favorite activity. >> Excellent. Great. That's what we like. >> Well, if there's no other if there are no other comments, I don't think there are. Thank you again very much for the presentation um for all the work you've done putting it together and all
074the work you do every day. >> Thank you. We appreciate your support. >> Thank you. >> Both entities. >> Thank you. >> Thanks so much. >> Um >> Thanks, And Chris, could you please motion to adjourn?