Rec centers lose membership, grow costly as they age

VIRGINIA BEACH

In the kitchen at Bow Creek Community Recreation Center is a 30-year-old microwave with a blue-and-white plastic label taped to its door.

"Out of order forever," it reads.

The warning is a small sign of the times at Virginia Beach's recreation centers, a nearly $20 million-a-year enterprise that has garnered a lot of public attention over the past month.

A divided City Council recently agreed to spend $293,000 on new equipment for the six centers, but not before questioning the operations of the aging buildings and their sagging popularity.

A review of city records by The Virginian-Pilot shows that operating costs at the centers rose 9.42 percent from fiscal year 2003 to 2007. In the same time frame, paid memberships for city residents dropped 10 percent.

"The operating costs have just exploded," Councilwoman Barbara Henley said. "It's not acceptable. I want to know why."

The answer starts in 1986.

City leaders wanted to build a recreation center in Great Neck, but voters refused. The next year, they instead approved a much broader, $32.85 million project to build three centers - Great Neck, Princess Anne and Bayside - and renovate Bow Creek, a one-time golf course clubhouse.

The city set aside 3.8 cents of the real estate tax rate to run, repair and pay off the debt for the four centers. Over time, that dedicated stream of money absorbed the costs of expanding and running the Seatack center and operating the Kempsville site, the oldest of the city centers.

By 1996, the city was using the "referendum money" to run and repair all six centers. With the rise in property values over the ensuing 12 years, the dedicated percentage of the tax rate rose and fell. It now stands at 3.476 cents, which is forecast to generate roughly $19 million in fiscal 2009.

"I don't think we can just say you can spend $20 million a year the way you want," Councilwoman Reba McClanan said. "I am very concerned."

The centers aren't free, although they are among the least expensive in the region. City residents pay less than others, but even people who live in other cities can buy a year's membership for $187, or less than $16 a month. On July 1, that rises to $280 a year, or less than $23.50 a month.

By comparison, private gyms can cost $50 a month.

McClanan said, regardless of the rates, membership drops trouble her because it makes little sense to accept rising costs and shrinking use.

"It's like most losing investments," she added. "Every business person has to make a decision on how much are we going to lose, how much are we going to let the program lose, before we stop."

Cindy Curtis, Virginia Beach's parks and recreation director, said membership is an issue, but officials understand what's behind the numbers.

Curtis said a 16 percent drop in youth memberships from fiscal 2003 to 2007 mirrors the shrinking population of students that the school division has seen.

The 12 percent drop in adult memberships is blamed mostly on competition from private gyms, a tightening economy and shifting interests.

In a twist, the centers are more popular with seniors. Between 2003 and 2007, the number of members 60 or older rose 37 percent, data shows.

"The people that are buying the memberships are using us," said Mary Cole, a recreation department administrator. "There are times of the day and times of the year that you can't get in the door."

Popularity has its costs, too. Six of the city's top 20 electricity users are recreation centers. Security systems installed after 9/11 need to be staffed and maintained. Workers maintain six swimming pools, two bowling alleys and a full preschool program.

All told, budget officials say the operating bill for the budget year that starts July 1 is $12 million.

Debt payments and capital projects add $6.7 million to the cost. Neither line item includes general administrative costs - such as payroll or purchasing - that is budgeted into overall city spending.

The centers' costs are offset by program fees, annual memberships and other money-makers, but Curtis said cash flow pays for only about half of the operating expenses.

An annual membership fee for a Beach adult will rise from $55 to $66 on July 1, and yearly youth memberships will rise from $22 to $27. Future increases are possible, as the city tries to shift revenue costs to program users.

"Without the dedicated referendum-funding stream," Curtis wrote in a recent report to council members, "revenues... could not sustain the facilities and programs at the levels currently enjoyed by our citizens."

The buildings are only going to cost more in coming years, Curtis said. The Kempsville site is 31 years old and Bow Creek is only two years younger. Both need major renovations, and the city plans a study next year to determine if they should be renovated or rebuilt.

A consultant's report shows Seatack needs an estimated $1.5 million expansion to build meeting and workout space, while the other three centers are in better shape because they were built after 1990.

"They are a beast to maintain and renovate," Curtis said. "They are not inexpensive buildings, and they are very heavily utilized."

Council members questioning the centers stop short of saying they should be closed, but several have asked for a more detailed accounting of what public dollars are buying.

The $293,000 recently approved is a window into that. The money will pay for interactive dance systems, climbing walls and pool toys - all aimed at attracting and retaining youths and family members.

"To counter the declining attendance," Cole said on a tour of the Kempsville site last week, "we need to put some, 'Wow, I want to go to the recreation center and do 'X.' If you don't keep up with the trends, the people don't come."

The discussion comes as the city moves forward with plans to build a seventh site, tentatively referred to as a western Bayside community center. Curtis and others meet regularly with a panel of citizens to discuss the project, estimated to cost $30 million.

"You work with the community," Curtis said, "to design a building they want."

Councilman Jim Wood said the push for modern equipment shows that Virginia Beach has a plan to increase us e. He said an analysis is needed to avoid overreacting to a 10 percent drop in memberships.

"A slim decline like that isn't telling us that people want us out of the rec center business," Wood said. "We need to try to do these improvements that staff has recommended and see if that makes us more competitive and more appealing."

Richard Quinn, (757) 222-5119, richard.quinn@pilotonline.com