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Minutes of a Meeting of the <br />North Olmsted Parks and Recreation Commission <br />November 6, 2006 <br />Page Ten <br /> <br />REPORT OF THE RECREATION COMMISSIONER <br /> <br />Financials <br /> <br />Revenues <br /> <br />Mr. DiSalvo stated that the pool will be short in revenue because of the bad start with management <br />issues for the first six months of the year. He said that he knows for a fact that the Recreation <br />Department will not make up the amount stated to be made. Next year should not be a problem. <br /> <br />The ice rink shows low revenue now, but in a typical year, November and December generate money <br />for the rink to meet the budget. <br /> <br />All the other departments are meeting their budgets. <br /> <br />Mr. Barker asked if the pool/rink figures represented the overall picture, or is the Rec going to break <br />even? Mr. DiSalvo said no because, e.g., if the Rec has $20,000 in revenue and there is $20,000 <br />expenses, for some reason it does not wash. If we are budgeted to bring in $1.5M we have to bring in <br />$1.5M. If we’re budgeted to lose $2.5M and lose $2.4M, that wash doesn’t matter, so it’s not a good <br />thing to fall short of our revenue projections. Mr. Barker asked if the change in rates made a <br />difference; Mr. DiSalvo said no, that wasn’t the problem; it was the management problem. Mr. Barker <br />said that, due to management issues, the pool fell to a point. Mr. DiSalvo said yes, to a point. The <br />majority of the issue was because of management. Some decisions were made to take away programs <br />that shouldn’t have been taken away and, as a whole, it was not managed as it should have been. <br /> <br />Mr. Baxter asked how $10,000 less revenue and $10,000 less expenses does not wash? Mr. DiSalvo <br />said he wished he could explain that. He said that the Rec has saved a lot on expenses thinking there <br />would be money ahead, but the Finance Department continues to say that revenues and expenses do <br />not wash each other. They are not together. Mr. Barker said that, thinking from a business standpoint <br />and the way government runs business, it’s different. Mr. Baxter said that then it would give the Rec <br />no incentive to save money on the expenses. Mr. DiSalvo said this is right. The Finance Department <br />says that whatever the budget is, spend it. One year the Rec Department saved $250,000, but it didn’t <br />matter because the Rec fell $15,000 in revenues. Mr. Barker said that perhaps one meeting someone <br />from the Finance Department could come and do some explaining to the Recreation Commission. Mr. <br />DiSalvo said he wished he could explain it better. <br />Page 10 <br /> <br />