“Conservative,” “Likely” and “Best Case” Projections
Show Strong Potential for Excess Revenue
The Southbury Finance Office, working in conjunction with the Edgewood Ad Hoc Task Force, has released an updated, detailed Profit and Loss projection for the proposed Edgewood purchase. The P&L considers three scenarios: Conservative, Likely, and Best-Case, with each showing Edgewood generating excess revenue ranging from $6,600 to nearly $140,000.
- The Conservative model shows that the current combined family membership of the Edgewood and Ballantine pools could drop off by approximately 20% and still return an excess revenue of $6,630.
- The Likely model factors in losing approximately 10% of current memberships yet would return excess revenue of $74,077.
- A Best-Case scenario, which still factors in a 10% drop in memberships but projects increases in day passes and other tennis revenue, estimates over $138,273 in excess revenue.
In any year where excess revenue over $30,000 is generated, 25% would be held in an Edgewood Reserve Fund for ongoing maintenance and repair. The additional 75% would go to a Town Park Reserve Fund for maintaining and enhancing other Southbury Town Parks and Facilities. If the $30,000 threshold is not reached, all excess revenue will remain in the Edgewood Reserve Fund.
Dan Colton, Town Finance Director, noted the significance of additional revenue streams in creating a positive balance sheet for Edgewood.
“Unlike the current Town Pool, which relies solely on revenue generated from aquatics, Edgewood generates revenue from tennis courts, the snack bar, and other amenities, which facilitates positive cash flow,” said Colton. “We wanted even our ‘Best Case’ scenario to be conservative, and in all three cases, even factoring in attrition, Edgewood shows excellent potential for generating excess revenue.”
Currently, the Town Pool at Ballantine Park does not generate enough revenue to cover expenses, costing the Town of Southbury $90,000 annually to operate.
The Town of Southbury has until July 31 to exercise an option to purchase the Edgewood Bath and Tennis Club for $2,000,000. Beginning in 2021, Edgewood would replace the current Town Pool at Ballantine Park, which has reached the end of its lifespan and is estimated to cost $4,100,000 to replace both the pool and adjoining bathhouse to meet ADA compliance standards.
A special referendum has been scheduled for July 16 to approve the Edgewood purchase.
On April 16, the Ad Hoc Task Force formally recommended the purchase of Edgewood to the Board of Selectmen. The purchase has since been endorsed by the Board of Finance, the Strategic Plan Commission, the Planning Commission, and the Parks and Recreation Commission.
The updated P&L document, along with other pertinent documents relating to the Task Force’s work, can be found on the Town website: southbury-ct.org/Edgewood.