Fort Smith, Sebastian County officials hear report on water park financials

The Parrot Island Waterpark brought good news for the Fort Smith Board of Directors and Sebastian County Quorum Court at Thursday’s (Oct. 29) special study session.

Rick Coleman of American Resort Management (ARM) presented current year financials and the proposed 2016 budget to the government bodies, revealing a year-to-date net operating income of $430,137.

While ARM overestimated 2015 revenues, the resort management team was able to cut enough expenses to keep Parrot Island operating in the black. Actual YTD revenue was $1.532 million against $1.102 million on the expense side.

As of Oct. 13, Coleman said, the water park has $600,759.16 sitting in its bank account. From that total, it will reimburse the city $180,000 in pre-operation expenses and set aside an additional $180,000 in reserve funds ($50,000 for capital improvements and repairs, $130,000 for expansion efforts). This will leave Parrot Island with a $240,000 balance to carry over into the new year.

2016 BUDGET
As for the proposed 2016 budget, Coleman is estimating $1.866 million in revenues against $1.566 million in expenses. Revenues include a projected 5% increase in transient (or daily) ticket sales. Additionally, ARM will raise the price of season passes for individuals from $59 to $79 — the so-called “100 days of fun” package — while a family of four will pay $249 instead of 2015’s introductory rate of $199.

Also, on season passes, there is an additional $59 charge for each family member over the four limit (so a family of five would pay $308, a family of six $367, etc). Transient ticket prices will remain at $15 for persons taller than 48 inches and $10 for persons under 48 inches. Children three and under will continue to get in for free.

As far as the lower revenue projection compared to 2015’s proposed budget, Coleman attributed this adjustment to having one year of actual data to work with and conservatism in allowing for a possible “sophomore slump.” Higher expense estimates are due to an increase in the minimum wage, which goes up 50 cents per hour on January 1, 2016, and could cost the park as much as $34,000 extra.

Coleman also estimated $17,000 on the second year of a landscaping contract and the remainder to pick up any construction since the city and county are no longer contributing to those efforts.

‘TREMENDOUS SUCCESS’
Fort Smith Mayor Sandy Sanders commended ARM for its role in making the water park a success. Sebastian County Judge David Hudson, as lead coordinator on the project, did a victory lap of sorts, calling the financial presentation a “celebration of success.”

“The park is funding itself as an enterprise fund,” he said. “Revenues are offsetting expenses and taking care of ongoing maintenance and expansion. It’s a tremendous success.”
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The history of Ben Geren Regional Park’s aquatics facility has been a bumpy one. The facility was approved by voters as part of an inter-local agreement between the city of Fort Smith and Sebastian County.

The park was sold to voters as an $8 million facility long before it opened around Memorial Day 2015. That figure would balloon to $12 million before construction came to a close. Both government bodies split construction costs, which will not be reimbursed out of park profits.