STRATEGIC BUSINESS PLAN
The GP-SBP uses the FY 2019-20 Budget as the basis for future projections. The GP-SBP includes estimates of future years for the Sports Complex, based on the Tournament and Local Access Model selected by the Board at its June 28, 2016 meeting. The GP-SBP is limited to operations and development of the 688-acres included in the public-private partnership between the City and Heritage Fields El Toro (Heritage Fields).
The GP-SBP revenues and expenditures are projected by individual line items, which is more accurate than the previously used 3 percent CPI escalation. Program revenues expected from the Sports Complex are increasing toward the 90 percent direct cost recovery goal directed by the Board and Council on October 25, 2016. Interest earning calculations assume a rate of one percent per year, reflecting the low prevailing interest rate environment. The financial projections will continue to be refined and updated as experience is acquired in the operation and maintenance of the Great Park.
Revenues Three categories of funding sources are available to the Great Park: non-recurring revenues, non-recurring funds restricted for capital improvements, and recurring revenues available for operations and maintenance. Non-Recurring revenues are finite resources that include funds received from development agreements with Heritage Fields and public-private ground leases for interim non-park uses that will terminate as the park reaches build-out. Non-recurring funds restricted for capital improvements are Quimby (Park in-lieu fees) previously allocated by the Board and Council. Recurring revenues for operations and maintenance include funds received through programming of activities and facilities within the park and maintenance funding received from the Community Facilities District (CFD) assessments. Expenditures The FY 2019-24 expenditures assume all Sports Complex facilities and 75 acres of landscaped trails in the Upper Bee and Bosque are completed and available for public use at the beginning of the fiscal year. Great Park expenditures fall into two categories: 1) operations and maintenance, and 2) development. Operational and maintenance costs, driven mostly by contract services, include the maintenance and rehabilitation of athletic fields, parking lots, trails, and facilities. These costs are expected to increase in the coming years due to rising California labor costs and operations costs as additional areas of the park are developed. Development costs, excluding Capital Improvement construction costs, are expected to decline over the forecast period as the forecasted areas near completion of the development cycle. FY 2022-23 and FY 2023-24 include projected costs for potential future Western Sector projects and Cultural Terrace development. Annual revenues anticipated over the period of the GP-SBP are found in FY 2019-2024 Orange County Great Park Fund Projections.
FY 2019-21 Proposed Budget
463
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