2015 Economic Study

THE ECONOMIC IMPACTS OF CARMEL CLAY PARKS & RECREATION

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GREETINGS! As we prepare for the 25th Anniversary of Carmel Clay Parks & Recreation (CCPR), it is fair to say that our nationally accredited and National Gold Medal Award winning park and recreation system has had a significant impact on the quality of life of our residents.

In 2015 alone, CCPR offered nearly 3,800 different programs and classes serving over 109,000 participants. The Monon Community Center on average had over 11,500 members with pass and membership attendance nearly eclipsing 582,000 last year. From a statistically valid survey, we know that 71% of our residents use CCPR’s parks or services at least once a year. Based on these statistics, the impact CCPR has on our community is hard to dispute.

Thanks to a recent analysis conducted by George Mason University, we now have validation of CCPR’s economic impact. Commissioned by the National Recreation and Park Association (NRPA), CCPR was honored to be selected as one of 21 case study locations for this national research study.

The findings of this study, which are summarized in this report, are truly eye opening. This research demonstrates that the benefits of CCPR extend well beyond our role of enhancing quality of life.

TABLE OF CONTENTS 2

About the Study

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The Economic Impact of Carmel Clay Parks & Recreation

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The Economic Impact of the Monon Community Center

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The Economic Impact of Local and Regional Park Agencies

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Carmel Clay Parks & Recreation 2015 Budget Recap

Also provided for your review is a summary of our financial performance in 2015. I am proud to share that we have extended our streak of achieving at least 80% operational cost recovery to five consecutive years. We embarked on over $2.8 million in capital projects in 2015, including exciting new developments in Central Park and necessary repairs and replacements that touched almost every park in our system.

We look forward to working with our community to ensure we remain a positive impact on our residents as we embark on our next 25 years. Thank you for your continued support of Carmel Clay Parks & Recreation.

Sincerely,

Mark Westermeier, CPRP Director of Parks and Recreation

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ABOUT THE STUDY The National Recreation and Park Association (NRPA) commissioned the Center for Regional Analysis at George Mason University to conduct a research study on the economic impact of operations and capital spending by local and regional public park systems in the United States. The results of this study adds to the growing body of evidence that the benefits of parks extend well beyond their role as a public amenity and an enhancement to the quality of life in their communities.

In addition to the national-level study and state-level assessments incorporated into the research, CCPR was selected as one of 21 case study agencies from 17 different states to help illustrate the economic impact of parks and recreation at the local or regional level.

KEY CHARACTERISTICS OF THE RESEARCH INCLUDE THE FOLLOWING: •

The study is focused exclusively on the direct, indirect (business transactions of park agency vendors) and induced (employees spending their earnings) effects local and regional park agencies’ spending have on economic activity.

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These results are a conservative measure of the economic impact of local and regional park agencies. The research does not measure the economic benefits that park systems generate for the environment, health and wellness, increased tourism and property values. Further, estimates of capital spending do not include usual spending appearing in annual budgets for depreciable assets. As a result, these estimates likely underestimate the total value of park system spending and their economic consequences.

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Data analysis tasks employed economic input-out multipliers developed by IMPLAN, Inc. and the U.S. Bureau of Economic Analysis.

The analyses provide estimates of economic activity (output or the value of transactions), value added (equivalent to gross domestic product), labor income (salaries, wages and benefits) and employment (headcount jobs).

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Findings are based on data from the U.S. Census Bureau survey of local government employment and spending data from 1,169 park systems accessed through the PRORAGIS database and/or park system budget data provided from online sources.

Review the full report and learn more about the Economic Impact of Local and Regional Parks at NRPA.org/ParkEconReport

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THE ECONOMIC IMPACT OF CARMEL CLAY PARKS & RECREATION The George Mason University study assessed the economic impact of both the Monon Community Center (MCC) specifically and CCPR in its entirety. Operations and capital spending by CCPR generated over $39.3 million in economic activity and supported 372 jobs within Indiana in 2013.

IN 2013, CARMEL CLAY PARKS & RECREATION: • Directly provided almost $7 million in labor earnings and more than 170 full-time equivalent jobs in 2013.

• Operation spending generated nearly $34 million in total economic activity and supported 334 jobs.

• Spent an estimated $3.2 million on capital programs, leading to about $5.6 million in economic activity and 38 jobs.

Economic Impact of Carmel Clay Parks & Recreation - 2013 OPERATING IMPACTS

CAPTAL SPENDING IMPACTS

TOTAL IMPACTS

Economic Activity (transactions)

$33,761,000

$5,561,000

$39,322,000

Value Added (GDP)

$18,055,000

$2,643,000

$20,698,000

Labor Income (salaries, wages, benefits)

$11,130,000

$2,006,000

$13,136,000

Employment (jobs)

334 jobs

38 jobs

372 jobs

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THE ECONOMIC IMPACTS OF THE MONON COMMUNITY CENTER Operations and capital spending by the MCC alone generated $11.8 million in economic activity and supported 149 jobs within Indiana in 2013. The true significance of this impact is best illustrated when contrasting it to the impact of other case study sites.

Compared to the other community centers included in the study, the MCC is in a league of its own. The MCC’s total economic impact is $9.1 to $10.6 million greater than facilities operated by nationally accredited and recent National Gold Medal Award winning agencies in Henderson, Nevada and Plano, Texas.

CASE SITE - COMMUNITY CENTERS

TOTAL IMPACT

JOBS

Monon Community Center, Carmel, IN

$11,787,441

149

Henderson Multigenerational Center, Henderson, NV

$2,722,958

25

Carpenter Park Recreation Center, Plano, TX

$1,219,950

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The MCC also demonstrates a significant economic punch when matched up to other nationally acclaimed parks or facilities included as case study sites. The MCC’s total economic impact of nearly $11.8 million is comparable to the impact of Atlanta’s BeltLine trail system and Houston’s Memorial Park. Of the 21 case study sites, only City Park in New Orleans and Winton Woods in Hamilton County, Ohio resulted in more than the 149 jobs supported by the MCC.

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CASE SITE - TOP 10 IN TOTAL IMPACT

TOTAL IMPACT

JOBS

City Park, New Orleans, LA

$34,455,114

290

Winton Woods, Hamilton County, OH

$21,840,284

202

South Germantown Park, Montgomery County, MD

$13,974,870

131

Atlanta Beltline, Atlanta, GA

$12,055,339

117

Memorial Park, Houston, TX

$11,963,901

111

Monon Community Center, Carmel, IN

$11,787,441

149

Reid Park Zoo, Tucson, AZ

$6,904,056

65

Fossil Trace Golf Club, Golden, CO

$5,421,492

44

Forest Park, St. Louis, MO

$4,255,194

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Henderson Multigenerational Center, Henderson, NV

$2,722,958

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THE ECONOMIC IMPACTS OF LOCAL AND REGIONAL PARK AGENCIES The findings for CCPR and the MCC are part of a broader research study measuring the economic impact of all local and regional park and recreation agencies in the United States. The operations and capital spending of these agencies generated nearly $140 billion in economic activity and supported almost 1 million jobs in 2013. In the state of Indiana, our local and county park and recreation departments generated nearly $1.4 billion in economic activity and supported 11,322 jobs.

IN 2013, AMERICA’S LOCAL AND REGIONAL PARKS AND RECREATION AGENCIES: America’s local and regional public park agencies generated nearly

• Directly provided more than 356,000 jobs in the United States, equating to nearly $32.3 billion in operations spending.

• Operations spending generated nearly $80 billion in total economic activity, boosted the gross domestic product (GDP) by $38.8 billion, supporting nearly 660,000 jobs.

• Spent an estimated $22.4 billion on capital projects, leading to about $59.7 billion in economic activity and more than 340,000 jobs.

$140 BILLION IN ECONOMIC ACTIVITY and supported almost

1 MILLION JOBS from their operations and capital spending alone in 2013.

Economic Impact of Local and Regional Parks on the U.S. Economy – 2013 OPERATING IMPACTS

CAPTAL SPENDING IMPACTS

TOTAL IMPACTS

Economic Activity (transactions)

$79,972,818,000

$59,655,408,000

$139,628,226,000

Value Added (GDP)

$38,782,352,000

$29,169,189,000

$67,951,541,000

Labor Income (salaries, wages, benefits)

$24,176,431,000

$19,613,750,000

$43,790,181,000

658,478 jobs

340,604 jobs

999,082 jobs

Employment (jobs)

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2015 BUDGET HIGHLIGHTS While not a comprehensive list, the following are some of CCPR’s more notable 2015 capital projects: CENTRAL PARK: • Completed first phase development of the North Campus located along 116th Street, which includes Carmel’s first dog park, picnic shelter, open meadow, parking lot and restroom facility.

• Began construction on the West Commons, which will feature a destination playground, splash pad, multiple picnic shelters, restroom facility, parking lot, and extensions to the park’s existing trail network

CAPITAL REPAIRS AND REPLACEMENTS: • Continued replacement of MCC cardiovascular equipment with the purchase of 20 new state-of-the-art treadmills • Replaced MCC gym curtains and wall mats and upgraded basketball backboard control system

2015 CAPITAL BUDGET

$2,808,640 Central Park: 63.1% $1,722,315 Capital Repairs & Replacements: 28.6% $803,344

• Upgraded, audited, and properly programmed the MCC building management system to secure future energy savings • Replaced chlorine feeders for indoor and outdoor pools • Made upgrades to the security camera system in Central Park • Purchased computer hardware compatible with new pass and program management software

Founders Park: 5.7% $161,140 Land Acquisition: 1.2% $34,000 ADA Transition Plan: 0.9% $25,000 West Park: 0.5% $12,841

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FOUNDERS PARK: 2015 OPERATING BUDGET

$11,377,030 Earned Income: $9,658,750 Cost Recovery: 84.9% WHERE IT CAME FROM •

Program Fees: 38.8% $4,760,342

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Membership & Pass Sales: 35.2% $4,327,101

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General Fund: 21.4% $2,624,021

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Food & Beverage Sales: 1.8% $218,558

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Rental Fees: 1.5% $188,797

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Other arned Income: 1.3% $163,951

WHERE IT WENT

• Added sound baffles in Wilfong Pavilion to enhance multipurpose rooms • Installed parking lot lights to better allow for the extended use of Wilfong Pavilion

LAND ACQUISITION: • Secured donation of the 9.8 acre Vera J. Hinshaw Nature Preserve, a beautiful forested area along the Monon Greenway, from the Vera Hinshaw Family Limited Partnership and Windpump, LLC • Negotiated agreement for the future development and donation of 1.98 acres, adjacent to the new nature preserve and to be named Vera J. Hinshaw Park, from Sunrise on the Monon, LLC • Continued negotiations and completed due diligence for the purchase of 5.12 acres from the family of Matilda Haverstick to help facilitate the future extension of the White River Greenway, with closing on property occurring in 2016

AMERICANS WITH DISABILITIES ACT (ADA) TRANSITION PLAN: • Completed an access audit of our properties and facilities to ensure compliance with the Americans with Disabilities Act • Park Board approved a phased plan to remedy deficiencies identified in the audit

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Monon Community Center: 32.8% $3,731,047

WEST PARK:

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Before & After School: 25.2% $2,864,839

• Initiated master planning process to incorporate 45 acres of undeveloped parkland

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Administration & Park Maintenance: 23.1% $2,624,021

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Recreation Programs: 8.6% $973,905

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Summer Camps: 5.9% $674,447

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Marketing: 4.2% $481,322

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Dog Park & Wilfong Pavilion: 0.2% $27,450

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VISION

CARMEL/CLAY BOARD OF PARKS AND RECREATION The Park Board was originally established in August 1991 through an Interlocal Cooperation Agreement between the City of Carmel and Clay Township. A distinct, political subdivision under Indiana law, the Park Board serves as the policy-setting body and fiduciary guardian for Carmel Clay Parks & Recreation. The Park Board consists of nine members appointed by the Mayor (4), Township Trustee (4), and Carmel Clay School Board (1).

2015 Board Members James L. Engledow, President Richard F. Taylor III, Vice President Jenn Kristunas, Treasurer Joshua A. Kirsh, Secretary

Wendy Franklin Kathie Freed James D. Garretson Richard Leirer Linus Rude

SENIOR MANAGEMENT Mark Westermeier, CPRP, Director of Parks & Recreation Michael W. Klitzing, CPRE, Chief Operating Officer Kurtis Baumgartner, CPRP, Monon Community Center Director Michael Allen, Park Maintenance Director Ben Johnson, Extended School Enrichment Director Audrey Kostrzewa, Business Services Director Lindsay Labas, Marketing Director Lynn Russell, Human Resources Director

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We envision an accessible system of vibrant community parks, diverse recreation facilities, sustainable park resources, and engaging recreation programs that contribute to healthy individuals and families, an active and tightly-knit community, a thriving economy, and a high quality of life in the City of Carmel and Clay Township.

MISSION The mission of Carmel Clay Parks & Recreation is to strengthen our community and serve residents through the acquisition, development, and management of highquality, innovative parks and facilities for recreation, preservation, and programming.

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1235 Central Park Drive East, Carmel, IN | 317.848.7275 | InTrac: 711 | carmelclayparks.com