South Shore Center - Hear a financial sucking sound?

6/7/11

The June 2nd "Sun Sailor" had a front page article about the Center, the 2010 financial results of Shorewood operating it and about the desire of some to install a very expensive electronic sign.

The council package for the 5/23 council meeting contained a report on Center operations for 2010. Page 3 of this report states that there were $62,370 in revenues for 2010 and hard costs of $77,481. The result: an operating loss of $15,111. Mentioned in the article, but not quantified, are Shorewood "in-kind" costs of operation. The council packet lists these as $16,874.

So, in reality it cost Shorewood taxpayers $31,985 to have the Center open in 2010.

The report shows a projected hard cost loss of $8,000 for 2011. Assuming similar "in-kind" costs in 2011, Shorewood taxpayers will be out $24,874 at the end of 2011. Yes, it's better than 2010, but is it good enough? It's not if the objective is to break-even financially as is supposed to be the case.

Keep in mind that the other "owners" of the Center: Deephaven, Greenwood, Excelsior and Tonka Bay; are not paying a single dollar towards supporting the operating costs. If this fair or sustainable?

Mayor Lizee brought forward an agenda item calling for Shorewood to buy an electronic sign to direct users to the Center. The cost was listed as $21,700. The justification was it's needed because users and potential renters have trouble finding the Center.

See http://windowsmedia.alphameetings.com/LMCCShorewood/052311shorewood.wmv for the recording of the sign discussion at the 58 minute point.

Greenwood, Deephaven, Excelsior, the South Shore Senior Partners and others have donated $9,700 toward the sign. Tonka Bay apparently said they needed to think about it. Lizee and Zerby appear to think little about the additional $12,000 Shorewood would have to pay out in 2012 to install the sign.

Staff recommended this expense be part of the 2012 budget discussion since the money is not in the 2011 budget. This didn't seem to affect Lizee's and Zerby's thinking one bit. To the Insider, this seems just one more example of fiscal recklessness exhibited by Lizee and Zerby who seem not to have met a dollar they didn't want to spend. BTW: these are YOUR dollars.

The sign is supposed to come up again at the 6/13 council meeting where staff is supposed to explain where the $12,000 will come from. Want to bet that the $8,000 2011 deficit will be $20,000 (adding the $12,000 sign) after the 6/13 meeting?

Happy Reading!
The Insider