2006 Year-End & 5-Year Summary Report

Prepared by: Joseph DeSimine, Center Director – February 2007

I am forwarding you the annual year-end report summarizing operations

Comparisons are drawn in the areas of:

First, a comparison is drawn between 2006 and 2005 totals

Second, since we are celebrating the 5-year anniversary of the center’s opening, I have indicated the growth experienced in each category since 2002

At a glance the following report will highlight the following occurrences in the past year:

Total Membership rose 1%

Total Revenue increased 15% (Membership rates were increased 8% in 2006)

For the 4th year in a row we realized a significant increase in Rental Revenue, increasing 18%

For the 2nd year in a row we saw significant growth in Programming, up 15%

Expenses increased only 3%

The report will also highlight the following changes occurring since opening in 2002:

Total Membership remained constant, decreasing less than one-half of 1%

Total Revenue increased 89%

Rental Revenue increased over 350%

Programming Revenue increased over 125%

Expenses increased 46% since our 1st year of operation

2006 ended with membership totaling 11,653 individuals

This represents a one year increase of 1% in membership since 2005

This indicates a negligible two tenths of one percent decrease since our year-end total during 2002, our first year of operation

As of December 2006, of the 500 business memberships made available by the township, we had 440 active memberships, compared to 452 in 2005

After a high in our first year, membership dropped slightly over the next two years. This was caused primarily by greater

scrutinizing of membership eligibility by the staff. Since 2004 membership has risen back to the 2002 total.

↓4%

↓1%

↑4%

↑1%

Revenue Variance Since Last Year by Category

Daily Passes up 13.3% Annual Passes up 12.0% Programming up 15.0% Rentals up 21.5% Other up 68.8%

Revenue Variance Since Opening by Category

Daily Passes up 85.1% Annual Passes up 66.9% Programming up 129% Rentals up 375% Other up 99.8%

Total revenue in 2006 was up to over $1.9 million

This represents a 15% increase over 2005 revenues

And an increase of 89% over revenue earned in 2002

↑29%

↑11%

↑15%

↑15%

Rental revenue includes the banquet rooms, birthday party room, gymnasiums, classroom and pools

Rentals accounted for 11% of total revenue in 2006, similar to 2005

Total Rental revenues accounted for $211,000 increasing 18% from 2005

Rental revenues have increased over 350% since our first year of operations

For 2006, we converted the underutilized Arts & Craft room to accommodate Birthday Parties on weekends in an attempt to increase our party capability and meet the demand. This caused an increase in Birthday Party Room revenue of 56% which accounted for $115,000

Gymnasium rentals dropped significantly in ’06, dropping 34% from $40,000 in 2005 to $26,000 in 2006

The Multi-Purpose room revenue was unchanged in 2006 compared to 2005. The room accounted for revenue of $51,000

Pool rentals, which account for a relatively small percentage (8%) of Total Rental revenue, saw a 31% increase in 2006 rising to a total of $15,500

↑120%

↑40%

↑26%

↑18%

2006 Rental Revenue by Type2006 Rental Revenue by Type

2002 2005 2006

Multi-Purpose $13,880 $51,304 $50,988

Party Room $31,565 $73,679 $114,979

Gyms$0.00 $2,626 $3,171

Pools$385 $40,023 $26,396

Class-Room $0.00 $11,770 $15,487

After dropping 6% in 2004, Programming revenue continued to rise in 2006

Programming revenue jumped 21% in ’05 and increased another 15.2% in 2006

We realized $251,926 in Programming revenue in 2006, up over $33,000

As indicated, Programming revenue is our 2nd largest revenue producer accounting for 13% of total revenue

Variance since ‘05 Variance since ‘02 (with 2006 revenue total)

Fitness Class Enrollment up 9.6% ($61K) up 11% Fitness Choice/-time class fee up 15% ($30K) N/AAquatic Exercise Revenue down 25 % ($8.5K) down 63%Swim Lesson Revenue up 10% ($33K) up 200%+Youth Programming up 25% ($7K) up 100%Health & Safety Classes up 11% ($14K) up 400%Arts & Craft Revenue down 45% ($5K) down 34%Personal Training up 40% ($42K) N/ASports Leagues up 29% ($46K) N/ATotal up 15% ($252K) up 129%

AQUATIC PROGRAMMINGFITNESS PROGRAMMINGOTHER PROGRAMMINGTOTAL PROGRAMMING REVENUE↑15%

↑21%↓6%↑75%

2002 2005 2006

Aquatic Exercise $23,228 $11,530 $8,594

Swim Lessons $9,542 $30,232 $33,275

Fitness $54,826 $55,480 $60,806

Arts & Crafts $7,840 $9,521 $5,160

Health & Safety $2,658 $12,906 $14,383

Youth Programs $3,529 $5,472 $6,821

Jan Pass $650 $1,368 $4,855

Fitness Choice $3,147 $26,585 $29,938

Basketball Leagues $4,755 $35,330 $45,725

Personal Training $0 $30,314 $42,371

Totals $110,174 $218,739 $251,926

Total Expenses (not including fringe benefits and insurance) equaled $2.2M

This represents a 3% increase over 2005 (revenue rose 15%)

Salary totals rose 5.5% since last year

Non-salary operating expenses rose by a mere .005%

Revenue equaled $1.9M resulting in a shortfall of approximately $226,000. Without factoring in fringe benefits, this equates to 89% recovery of expenses

Total Expenses with fringe benefits & insurance (projected by finance at $384,289 and $288,206, respectively) equaled $2.86M resulting in a shortfall of $898,000. This equates to 69% recovery of operating expenses.

Gas and electric continues to account for a large amount of expenses, equaling 49% of the total non-wage expenses and 20% of all expenses (including wages).Wages plus Gas & Electric account for 79% of the total expenditures.

Salaries accounted for 59% of total expenses in 2006; compared to 58% the two previous years and 60% in 2002.

Overtime increased 38% due to a change in the Holiday pay policy for community center employees.

↑12%

↑12%

↑3%↑12%

2002 2005 2006

Personnel Services $893,421 $1,230,552 $1,297,850

Materials & Supplies $123,767 $210,689 $237,846

Contractual Services $446,189 $635,753 $631,854

Equipment $34,402 $36,862 $18,208

Total Expenses $1,497,778 $2,113,856 $2,185,758

2006 EXPENSES/REVENUEWITHOUT FRINGE BENEFITS

2006 EXPENSES/REVENUEWITH FRINGE BENEFITS

69%Recovery

OfExpenses

89%Recovery

OfExpenses

Attendance by pass holders increased 13% from the previous year

This increase substantially outpaces the 1% change in the number of total pass holders

Attendance data does not include the thousands of individuals utilizing the facility for youth basketball, basketball leagues, wrestling and swimming events. All of whom enter the facility through the side doors and are not required to check-in

Peak daily usage times have not changed since our opening

At 6am we experience a steady influx, followed by a rush at 9am

Usage drops consistently until about 3pm and reaches it peak between the 5-7pm time period

The fitness center is extremely busy for the first 3 months of the year between the peak usage hours of weekdays, 5:00-8:00pm

The gymnasiums are at maximum capacity from the time youth basketball practice begins in November until it ends in early March for the same time period (weekdays, 5-8pm)

↑1%

↑4%

↑5%

↑13%

As always, if you require any further information or explanations of these reports, please do not hesitate in contacting me at 251.0990.

Thanks,Joe