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HomeMy WebLinkAboutMemo - Read Before Packet - 02/25/2025 - Memorandum from LeAnn Williams re Southeast Community Center Childcare 1 Recreation Department 215 North Mason 970.221.6655 fcgov.com/recreation MEMORANDUM DATE: February 25, 2025 TO: Mayor and City Councilmembers THRU: Kelly DiMartino, City Manager FROM: LeAnn Williams, Director Recreation RE: Southeast Community Center Childcare ____________________________________________________________________________ Question After State reimbursement and whatever our customers are paying – not counting construction of the building – after all expenses, personnel, equipment, and incoming revenue, what will be the net cost of the childcare facility on an annual basis? Response The Southeast Community Center (SECC) conceptual design indicates a childcare space with two classrooms that will be utilized for Universal Pre-K(UPK), Licensed Funtime Preschool and Funtime summer camp. The following is the breakdown of estimated revenue and expenses. Capital Cost: $2.2M - $2.4M Revenue: UPK, State funded Recreation Fee (collected Fall 2028-Spring 2029 UPK Class 16 $142,474 $83,980 Fall 2028-Spring 2029 Preschool Class 16 $- $179,180 Summer 2029 18 $- $37,800 Total Docusign Envelope ID: 7CF0CC0A-EB8B-4A30-BF38-3737B38F79DE 2 Revenue Assumptions: • The above table assumes 100% capacity and no reduced fee participation. o A breakout of the annual subsidy to the program is below considering varying levels of reduced fee participation. Expense: Early Childhood Teacher 1 A4-1 $87,967 Early Childhood Teacher 1 A4-1 $87,967 Early Childhood Teacher 1 A4-1 $87,967 Early Childhood Teacher 1 A4-1 $87,967 Misc. Expenses (Classroom furniture, PD, Supplies) N/A $50,000 Indirect Cost - Facility O&M (4%) $63,000 Expense Assumptions: • The staffing model mirrors that of NACC that has 2 year-round classrooms utilized by UPK, Licensed Preschool and Funtime summer camp. • There is no indirect management or recreation administration costs calculated into this as this program will be placed under the current management of youth and early learning programs. • The Facility O&M assumes that the childcare wing will account for approximately 4% of the projected O&M for the facility. This was due to the square footage of the space accounting for approximately 4% of the total recreation and shared space. This is a too early estimate but the best we have currently. This number will be refined as the facility is designed. Annual Net Cost: No reduced fee participation: $3,700 10% reduced fee participation: -$26,400 20% reduced fee participation: -$56,500 30% reduced fee participation: -$86,500 40% reduced fee participation: -$116,600 • The assumption was made with max participation in each program. CC: Tyler Marr, Deputy City Manager Dean Klingner, Community Services Director Docusign Envelope ID: 7CF0CC0A-EB8B-4A30-BF38-3737B38F79DE