RecPlex Facts

    COVID-19 Effect on RecPlex Revenue and 2021 Budget Proposal
    Posted on 11/06/2020
    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 
    • 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. 
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