The Longboat Key Town Commission, which approved a new 1,750-square-foot pro shop and other facilities for the Longboat Key Public Tennis Center last year, is curious if the town-operated facility will make money in the next fiscal year.
Finance Director Tom Kelley reviewed the tennis budget and submitted a comparison of how the island’s center stacks up with nearby county-run facilities, after the Town Commission questioned whether the revenue projections in the preliminary budget were too optimistic based on historical Tennis Center actuals.
Kelley wrote in a memo sent to Town Manager Bruce St. Denis: “The majority of the increased revenue expectations came from the addition of the new teaching court and lesson revenue generated by the new contract-tennis professional. Tennis Center management is confident the projected revenue levels could be achieved but has since reduced the projection to where the Tennis Center is expected to break even but not show a profit. The original revenue forecasted for the contract-tennis professional was $75,000, which has now been reduced to $50,000.”
The finance director said the recommended Tennis Center expenditure budget for fiscal year 2009-10 is higher than fiscal year 2008-09 because of a position that was eliminated in this year’s budget ($50,000) but re-inserted for next year and the cost of a new teaching professional ($40,000). Any additional costs paid for the contracted teaching professional, Kelley said, will be offset by a higher amount of revenues.
Also increasing the tennis budget, Kelley said, are additional costs for lessons, special events and merchandise for resale. Each of these should generate revenues in excess of their respective cost increases.
Kelley wrote: “The Tennis Center budget shows a reduction in the salaries paid to the tennis professionals in an effort to make the operation self-sufficient. The reduction in the tennis professionals’ base salaries may be offset by an adjustment to the lesson-revenue percentage for the tennis professionals to provide the opportunity for them to earn the same amount as previous years by spending more time teaching. The addition of the new teaching court will also provide them with additional court availability to give lessons.”
The following chart provides a breakdown of the actual revenues and expenses for fiscal year 2007-08 and the projected revenues and expenses for the fiscal year 2009-10 budget. To view this chart, please click on the link below.