Bianca Wright

September 23,2013

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Sports Connection Budget Report

The Community Foundation announced the creation of Sports Connection at an August 30 press conference. In the days after this announcement, tremendous enthusiasm and support for this new facility and its programs have been evidenced. Citizens have written numerous editorials for local newspapers, principals have requested information and tours for students of all ages, and civic and professional organizations have requested speakers on topics related to fitness programs and teen fitness and nutrition. Thus, the initial plan to create excitement about the new opportunities to be made available through Sports Connection has been successfully implemented. Sports Connection is now fully staffed. The director holds weekly staff meetings for lead staff members to share progress toward each of the initiatives requested by the donor of the $5 million to the Community Foundation. The organization chart in Figure 1 shows the lead staff members.

Karen McKay Director Molly Neely Receptionist

Alam Khoo
Program and Events Manager

Bianca Assistant Director

Heath Bradly Facilities Manager

The purpose of this report is to present to the Board of Directors (1) the first-year budget, (2) the detailed fee schedule, (3) two key sponsorships, and (4) recommendations. Budget The Sports Connection budget for July 1, 20-- through June 30, 20-- is printed in full in Appendix A. The ten budget categories, with amounts designated for each category, are itemized. The $2 million budget includes a high of 40 percent being designated for building renovations with the next highest amount at 12.5 percent designated for playing field area upgrades and equipment and furniture purchases. Each budget category is explained thoroughly in the text that follows. Justifications are presented where appropriate with references to the specifications of the grant.

Bianca Wright

September 23,2013

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Building Renovations
Figure 2 lists the individual items for the building renovation category. The largest portion of the entire budget$800,000 or 40 percent of the budgetis devoted to the building renovations required at Sports Connection. It is important to remember that the New Orleans Park and Recreation Center was using space released from the local schools after consolidation. This space included a gymnasium, cafeteria, office suite, several large classrooms, and restrooms.

Building Renovations Painting, repairs, interior construction work Reconfigure to have 2 basketball courts, 1 volleyball court Convert 2 classrooms to aerobic center Convert 2 classrooms and 2 rest rooms to locker rooms Convert 1 classroom to a seminar/conference room Convert section of cafeteria to staff lounge and user lounge Improve handicap access Reconfigure office area Convert remaining cafeteria section to fitness center Reserve for contingencies Subtotal

$ 250,000 150,000 25,000 150,000 25,000 50,000 50,000 10,000 50,000 40,000 800,000

The largest item in this category is $250,000 designated for painting, repairs, and some interior construction. Also, adding two basketball courts and one volleyball court; converting existing classrooms to an aerobic center; and adding locker rooms, a lounge for fitness staff and patrons, and a seminar/conference room are major renovations needed. The addition of the seminar/conference room will open up a wide variety of opportunities for educational programming that will address the needs of varying audiences. The budget also shows a $50,000 expenditure to improve handicap access. Having access for handicapped individuals and other special groups who otherwise might not take advantage of this facility was an important specification made by the anonymous donor.

General Park Upgrade

This category represents a total of $150,000 or 7.5 percent of the total budget. The general park area has not been upgraded since operation began. Through years of use and normal deterioration, it is necessary to budget funds for general park upgrades. Figure 3 taken from the budget shows expenditures for upgrading the playground area to improve present needs and to meet the needs of special groups. Improving lighting and landscaping will enhance the park area as well as allow special activities after dark. Picnic and shelter areas are also in need of updating. Again, new programs can be scheduled using these special areas.

Bianca Wright

September 23,2013

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General Park Upgrade Add walking, jogging, and bike trails Upgrade playground area Improve lighting and landscaping Add picnic and shelter areas Subtotal

30,000 20,000 50,000 50,000 150,000

The interest in fitness for all ages justifies adding walking, jogging, and bike trails. Citizens will now have access to excellent trails for making fitness a lifetime commitment. Also, special programs will be planned using these areas of the park.

Playing Field Area Upgrade

Figure 4 shows that upgrading the playing fields costs a total of $250,000 or 12.5 percent of the total budget. To offer the programs outlined in the donors request, the park must have improved lighting and additional bleachers. This will allow recreational and competitive sports in the evenings when citizens are off work. Previously the park had used the baseball and softball fields that existed for the schools. This portion of the budget would allow new layouts for these two sports, including fences added for batting practice and other needed areas for safety. In addition, with the interest in soccer beginning at preschool, appropriate soccer fields can be designed with official measurement for appropriate age levels. With these improvements, the city will be able to sponsor various tournaments, which will result in revenue for Sports Connection and sales revenue for businesses.

Playing Field Area Upgrade Improve lighing Add bleacher sections Improve drainage and hydro-seed to improve turf Add fencing behind batting area and in needed areas Lay out soccer, baseball, and softball fields Subtotal

75,000 25,000 50,000 50,000 50,000 250,000

Swimming Pool and Tennis Court Upgrades

This category calls for $175,000 or 8.75% of the budget to resurface the existing tennis courts, repair fences, and improve lighting. Additionally, the pool deck requires resurfacing and fence repair. Staff members will plan age appropriate swimming and tennis lessons. Again, with improved lighting, citizens can enjoy these sports in the evening, and tournaments can be sponsored, which will result in revenue. Figure 5 shows the itemized list and cost.

Bianca Wright

September 23,2013

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Swimming Pool and Tennis Court Upgrades Resurface tennis courts Repair fence and upgrade area surrounding tennis courts Improve lighting Resurface pool deck Repair fence and upgrade area surrounding pool Subtotal

75,000 25,000 25,000 25,000 25,000 175,000

Driving Range and Practice Putting Green Construction

An added opportunity shown below is the addition of a driving range and putting green. This construction is budgeted at $85,000 or only 4.25 percent of the total budget and is justified by the importance placed on citizens realizing that fitness is for life. The driving range and practice putting green along with educational programming and golf lessons offered by our staff will contribute to the achievement of this goal. Figure 6 itemizes this category.

Driving Range and Practice Putting Green Construction Driving Range Practice putting green Subtotal

40,000 45,000 85,000

Equipment and Furniture

The purchase of equipment and furniture, budgeted at $250,000 or 12.5 percent of the budget, is second only to the cost of the building renovation. However, to operate the high-quality programming that is suggested by the grant specifications, appropriate equipment is needed. Our staff experts have visited fitness centers in several states and have surveyed fitness centers nationwide to determine the best equipment for the needs of Sports Connection. In addition, furniture was not in place for the office, the seminar room, and the staff/volunteer and user lounges. Computers and a copier were purchased for office use. Having member records fully automated will soon offset the cost of the computer. Refer to Figure 7 for details.

Equipment and Furniture Fitness equipment Sports equipment Office furniture and equipment Seminar room furniture and equipment Furniture for staff/volunteer and user lounges Subtotal

100,000 75,000 35,000 15,000 25,000 250,000

Bianca Wright

September 23,2013

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Grand Opening
A well-planned and publicized grand opening was set forth in the specifications of the donor. For this reason, a comprehensive grand opening has been planned and justifies the total expenditure of $40,000. (See Figure 8.) This amount is a low 2 percent of the budget as a result of services donated by a public relations professor at Central University who is very interested in the success of this grant. With our well-trained office staff and computer hardware and software, the center will be able to do the publicity pieces and mass mailings in-house, thus resulting in substantial savings.

Architect and Professional Fees

Bids for architect and engineer costs were advertised according to city guidelines. Darryl Kemp was approved as the architect and C. Rebecca Hunter as the structural engineer. Copies of the bids can be requested from the director of Sports Connection. The architect and professional fees total $50,000 or 2.5% of the total budget. Operational Budget for First Year Based on the agreement with the donor, $150,000 or 5 percent of the $3,000,000 placed in the Community Foundation endowment fund is to be given to Sports Connection each year. This amount is to be used for operating expenses and is provided only if earnings on the endowment are adequate for distribution. Reserve for Contingencies As directed by the city of New Orleans, a reserve of $50,000 or 2.5 percent of the total budget is noted as a line item.

Architect and Professional Fees Operation Budget for First Year (= to 5% of endowment) Reserve for Contingencies Total Budget

50,000 150,000 50,000 $ 1,960,000