The Village Board to consider increasing the tax levy for 2021 in response to the COVID-19 impact on the RecPlex to assist with the facility’s $2.5 million annual debt service payment.
RecPlex operational facts
- Annual operating budget is about $12 million.
- Annual debt payment is $2.5 million.
- RecPlex is the largest municipally owned recreational facility in the country.
- RecPlex opened to the public in Oct, 2000 (2020 is the 20th anniversary).
- For the entire 20 years, RecPlex has remained self-sufficient on its own revenues (memberships, programming, and rentals). No Village tax dollars have gone toward infrastructure or its operations.
- In order to maintain autonomy from the tax levy, RecPlex built up a $2 million cash reserve.
- RecPlex annually pays approximately $500,000 back to Village for services provided.
RecPlex is a quality of life and economic engine for the region
- The 2019 economic impact or tourism dollars generated for the area was around $7.18 million.
- Serves as a recruitment and marketing tool for businesses locating to the area (corporate fitness program/family services).
- Provider of childcare and therapeutic recreational services.
- Major employer (200+ employees) both professional and entry level, to the workforce.
The impact of COVID-19 on RecPlex
- Mandates closed operations for 10 weeks.
- Mandates restricted use of facility for the past 6 months in terms of occupancy and spectators.
- Mandates limited the ability to recruit new members and encouraged membership cancellations.
- 2020 estimated revenue loss $3.1 million.
- 2021 estimated revenue loss is $1.8 million.
- Despite countless staff hours petitioning assistance, because RecPlex is municipally owned, it did not qualify for any State and Federal relief aid.
2020 proactive Village measures to handle revenue loss
- Staff reduced operating expenses by $1.0 million.
- RecPlex utilized $1.8 million in cash reserves.
- The Village redirected over $1.3 million as an inter-fund loan to cover debt in 2020.
2021 budget proposal
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Expense reductions and salary attrition of $250,000.
- The RecPlex budget to cover all operation costs and debt interest.
- The tax levy will cover $1.5 million of debt principle.
- In addition, RecPlex will place on hold $300,000 capital improvements.
RecPlex utilizing the tax levy
- Even after adding this debt to the tax levy, the Village mil rate will remain below the $5 per thousand threshold.
- RecPlex impact on the Median Residential home of $237,200, will be $119.65 or about an 11% increase.
- Most jurisdictions, recreational facilities are supported by the tax levy.
- The reason the Village opted to municipally own the facility rather than establish a non-profit status was to take advantage of Village debt capacity.
- Because RecPlex is municipally owned, the Village Levy is backing the debt.
- It is difficult to expect the State and Federal Government to assist if locally Pleasant Prairie is unwilling to support this facility during extreme circumstances.
- RecPlex is too significant an asset to the Village, for the Village not to support its continued success.
RecPlex proposed benefits for Pleasant Prairie taxpayers in 2021
- Non-members – free beach access ($45 savings) & 5 guest passes ($55).
- Members – Free parking pass ($30) & 5 guest passes ($55).
- Individual memberships receive a $4 discount each month.
- Senior memberships, for residents 60 and older, receive a $17.33 discount each month.