Page 21 - NRH FY20 Approved Budget

including the refurbishing of older parks and playgrounds, is the majority of the expense in this
fund. Declining sales tax revenues coupled with increased upkeep and maintenance of the City’s
32 miles of trails and 802 acres of parks makes it necessary to scrutinize and prioritize
expenditures, including capital project expenditures, from the parks fund to insure its
sustainability into the future. Adopted expenditures from the Parks Development Fund include
capital projects totaling $1,046,000. These projects include the reconstruction of Linda Spurlock
Park, park infrastructure maintenance, resurfacing courts at the tennis center (partially funded
by a grant and a contribution from BISD), and a portion of the cost of creating an area along the
Barfield Trail to commemorate the historic Green Valley Raceway. The Green Valley Raceway
project will be funded through sales tax reserves, a grant from the Barfield Foundation and
donations. Funds were requested to relocate the Common Ground Community Garden.
However, staff does not recommend funding this project. At this point the current site is still
available and some future facility needs have caused staff to question the use of the space at
the Service Center.

The majority of expenditures from this fund pays for the operating costs of the City’s parks, trails
and recreation facilities. The largest expense category is operating costs of our parks and trails
($3,714,558 adopted) followed very closely by operating costs of the NRH Centre and Grand
Hall ($3,191,373 adopted). NRH Centre expenditures include fitness equipment
replacements and other facility repairs and improvements. Due to strong revenue and
conservative expenditures, the Centre continues to be able to fund its operations and capital
costs while still adding to the NRH Centre reserve fund each year.

Aquatic Park Fund

NRH2O was the first municipal water park in the DFW area when it opened in 1995. Since then,
eight new waterparks have opened in addition to private parks and hotels that include water
parks as an attraction mix. The addition of these recreational facilities, ranging from local area
cities opening expanded leisure pools, to the public/private partnerships opening in multiple
th
locations, have offered challenges. In addition, NRH2O is a 4 quarter facility with just 110 days
to make its revenue, and weather has a big impact on attendance and operations.

Over the last five (5) years attendance at NRH2O has averaged 211,000 guests. The summer
of 2018 was the lowest attendance of the past five years with 184,064 in attendance. There were
28 rain days and 12 park suspensions and/or closures that year. This year the park has already
had 18 rain days and 8 suspensions. The highest attendance over the past 5 years came in
2015. That year we only had 4 suspensions. As we develop budgets now and into the future, we
will estimate attendance very conservatively so that we are aligned with revenue and
expenditures.

Even with the weather challenges this year, NRH2O will pay for 99% of its operational
expenses and debt service because of reductions in expenditures and a focus on
increasing revenues. Just prior to the 2019 operating season, NRH2O made the decision to
move to tiered pricing in an effort to maximize revenues. This pricing structure allows
adjusted pricing based on the day one attends the park, and allows guests flexibility in
choosing the date they want to visit the water park. To get the best price, guests must
purchase their tickets on line. In addition,

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