1. health and fitness

Summit on the Park Business Plan
Period: 2008 - 2012
46000 Summit Parkway
Canton, MI, 48188
Phone: 734-394-5460
Fax: 734-394-5475
Web Site: leisure.canton-mi.org
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Table of Contents
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Executive Summary
History
Organization Overview
Division Action Plan
Division Guiding Principles
Division Objectives
Vision of the Future
Operations
Summit on the Park Identity
Organization Structure
SWOT Analysis
Competition
Marketing
Product Mix
Advertising and Promotions
Target Market Summary
Market Assessment
Demographics
Market Identification
Market Objectives
Market Trends
Financial plan
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10
20
12
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14
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15
16
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Executive Summary
History of Summit on the Park
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Opened in 1996 as an 89,000 square foot recreation and cultural center in the
heart of the Canton Community.
Original construction cost was $13 million and was primarily funded through landfill
royalties, with additional funding coming from a federally sponsored community
development block grants, a State of Michigan Recreation Land Grant, and cable
television royalties.
In 2001 an additional 6,000 square feet was added with the Fitness Center. Also
added was a new Recreation Center entrance and additional locker rooms
bringing the facility to a total of 95,000 square feet. This $2.1 million expansion
was funded through the sale of Bonds and a Clean Michigan Initiative Grant.
The facility includes an Aquatic Center, Fitness Center, Class/Meeting Rooms,
Gymnasium/Indoor Track, Banquet/Conference Center, Full Service Commercial
Kitchen, a Senior Center, Men’s / Women’s /Special Accommodations Lockerrooms, Dance Studios, and a Racquetball court.
Open an average of 110 hours per week and over 5,700 hours per year offering a
variety of membership and daily visit options.
Contract externally for food service in the Banquet and Conference Center.
Canton receives 19% percentage of all food and beverage sales.
Annual debt service of $90,000 through 2017.
Constructed in an area designed to increase property values south of Ford Rd.
Surrounded by 105 acre Heritage Park and Pheasant Run Golf Club.
Organization Overview
As the community center for Canton Township residents, obtaining a sense of place
for the Canton Community is our primary goal. We see it as our main mission to
provide high quality service while maintaining fiscal responsibility for the residents of
Canton. Our basic objectives are driven by following the department mission of
creating community through people, parks, places and programs.
Summit on the Park strives to provide exceptional facilities and services that will
positively impact the local economy and work force, improve the health of our
residents, promote social growth and foster a sense of community. “The Summit” as
it is known in the community, continues to be a place where Canton’s diverse
population can experience a wide variety of leisure activities.
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The Summit serves as the clearing house for Leisure Services, providing space for
recreation classes, programs, and special events. In addition, the Summit serves as
the information source for the department and the primary ticket outlet for the Village
Theatre. The front desk staff, when accounting for all transactions, processed over
$2.75 million in total receipts in 2007. A total of 8,145 memberships were sold in
2007, which is an increase of 520 memberships (7%) compared to 2006. Guests
visited the Summit 432,870 times in 2007 for fitness and recreational purposes. This
is equivalent to 1,216 visits per day.
The fitness center continues to be a busy area within the Summit with a total of
128,656 people counted during hourly participation counts in 2007, which is an
average of 352 guests per day. The fitness center has a variety of equipment for
guests to improve their overall fitness, including 29 pieces of strength equipment, 10
plate loaded pieces of strength equipment and 41 pieces of cardiovascular fitness
equipment. The fitness center also provides an excellent venue for personal training.
A total of 1,552 personal training sessions were conducted in the fitness center in
2007. From open to close, there are always people working out in the fitness center.
Membership and Health/Wellness Summary
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
58,141
52,587
2006
34,239 31,806
2007
7,624 8,145
3,674 4,368
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The gymnasium hosts a variety of activities, including volleyball and basketball
leagues, open gym time, karate, and special events such as The Big Chill and
Halloween Trick or Treat Parade. The 1/16th mile track provides walkers and joggers
with an alternative to treadmills and hosts the Silver Fox Senior Striders walking
program. The gymnasium experiences increased demand during the winter months
due to programming and increased guest usage in the facility.
The Parkview room hosts the Senior Adult Program weekdays and a variety of
meetings and functions on weekends, including baby showers, receptions, staff
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meetings and homeowner association meetings. In 2007 there were over 71,500
senior adult visits to the Senior Center.
Summit Gourmet by Continental has a contract with Canton Township to operate the
Banquet/Conference Center by providing sales, booking, event planning and food
services. Leisure Services receives 19% of sales bookings in the banquet center.
Summit Gourmet by Continental offers an upscale menu but is capable of meeting the
needs for every event. In 2007 Continental served 38,489 meals in the
Banquet/Conference Center.
As the facility enters it’s 12th year of operation, the 2008 budget reflects a 9%
($200,000) increase in operating expenses. This is due to the direct expensing of
facility maintenance which was previously charged to the Administrative and
Community Services budget. Expenses are monitored carefully to ensure that all
resources are utilized efficiently and staff actively seek cost saving opportunities.
Division Action Plan
Division guiding principles and division objectives are accomplished through division
actions plans developed for each division of Leisure Services. These plans outline
specific initiatives that will be implemented throughout the year to work toward
division and department goals. A full listing of the Summit division action plan
initiatives can be found in appendix A.
Division Guiding Principles
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Provide a safe, clean and well maintained facility for the community to gather
and participate in fitness-related activities, programs, classes, events and
social opportunities.
Provide excellent, pro-active customer service and accurate information to the
community by serving as the “hub” for Leisure Services.
Enhance and extend the lives of residents through excellent programs, classes
and facility amenities.
Provide state of the art fitness equipment through sound financial management
practices, including cutting edge lease agreements and financing options.
Act as an economic engine in the community/local area by providing
employment opportunities.
Provide opportunities for staff growth and development by clearly defining job
responsibilities, cross-training opportunities and the training necessary to
assume new roles in the department.
Encourage families to gather by providing facility amenities and
programs/classes that will create lifelong opportunities and interests.
Manage risks in the facility through a comprehensive inspection program,
including annual safety inspections and comprehensive staff training.
Utilize the Summit to its maximum operating capacity as frequently as possible.
Demonstrate fiscal responsibility by constantly monitoring expenses and
revenue and develop strategies to reduce the overall subsidy level.
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Division Objectives
The Balanced Scorecard concept is used as a measurement tool for the Leisure
Services Department. The balanced scorecard transforms our strategic plan from a
passive document into and active measurement toll for the organization. It provides a
framework that not only provides performance measurements, but helps planners
identify what should be done and measured.
Typically governments have performed financial measurement of the organization
through the budgeting process. The financial measures, however, are inadequate for
fully guiding and evaluating the journey through the information age that agencies
must make. Therefore, the balanced scorecard is based on collecting measurable
results from the following four perspectives: Customer, Financial, Operational,
Employee.
Vision of the Future
The Summit on the Park can look forward to a promising future, because of our
experienced staff, our careful planning, and the continued support by the Community
and Township Board. The management style is flexible, progressive and energetic.
Enthusiasm of the management as well as the employees and volunteers will greatly
stimulate the envisioned growth.
The goal for the increased revenue from the envisioned growth of membership sales
and facility usage will be used to offset rising fixed costs. Costs for full time wages
and benefits are rising at 6% per year while utilities continue to rise at approximately
10% per year. In partnership with the anticipated growth, it is imperative that strategic
pricing, conservative use of resources, and alternative funding remain at the forefront
of our attention. It is understood that all financial projections may need to be modified
based on availability of Township funds.
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Operations
Summit on the Park’s Identity
The identity of the organization is made clear by its logo, signs, ads, communication
material, furnishings and decoration. The Summit is located at 46000 Summit
Parkway, Canton MI, 48188.
Location
Description
Immediate area
Type of area
Suburban community
Adjacent uses
Residential
Benefits
Central location in the community
Proximity
Customer type
Residents of all demographics
Potential customers
87,000
Competitors
Lifetime Fitness, Curves, Livonia Rec Center, Fitness 19
Accessibility
Close to major streets
Near the intersection of Canton Center and Palmer
Easy entrance / exit
Four entries, three accessible
Visibility
From road
Easy to see, high peaked copper roof
Appeal of exterior
Peaked copper roof, split faced brick, numerous windows
Landscaping
Pond with two fountains
Operating hours
The Community Center is open
Monday – Friday
5:30 am – 11:00 pm
Saturday
6:00 am – 9:00 pm
Sunday
7:00 am – 9:00 pm
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The Organizational Structure
Management and personnel
Department
Director
Park and Facility
Maintenance Manager
Recreation and
Facilities Supervisor
Clerk III (1.5)
Park and Facility
Maintenance
Supervisor
Health/Wellness and
Aquatic Coordinator
Recreation Specialist –
Health/Wellness and
Aquatics
Facilities Coordinator
Maintenance Tech II
(2)
Maintenance Tech III
(1)
Maintenance Tech IV
(4)
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Personnel
The 5-year projection for personnel is expected to show the following:
2008
2009
2010
2011
2012
Total
Maintenance
Headcount
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263,465
272,176
280,341
288,751
297,414
1,402,147
Payroll burden
105,386
108,870
112,136
115,500
118,965
560,859
Total cost
368,851
381,046
392,477
404,252
416,379
1,963,005
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74,680
78,023
81,533
85,219
89,089
408,544
29,872
31,209
32,613
34,087
35,636
163,418
104,552
109,233
114,147
119,306
124,724
571,962
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2
2
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59,758
62,148
64,646
67,257
69,274
323,082
Payroll burden
23,903
24,859
25,858
26,903
27,710
129,233
Total cost
83,661
87,007
90,504
94,159
96,984
452,315
Payroll
Bonuses
Management
Headcount
Payroll
Bonuses
Payroll burden
Total cost
General & Administrative
Headcount
Payroll
Bonuses
Operations
Headcount
Payroll
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3
3
3
105,758
112,104
118,830
125,960
133,517
596,168
Bonuses
Payroll burden
42,303
44,841
47,532
50,384
53,407
238,467
148,061
156,945
166,362
176,343
186,924
834,636
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503,661
524,451
545,350
567,186
589,294
2,729,942
Payroll burden
201,464
209,780
218,140
226,874
235,718
1,091,977
Total personnel cost
705,125
734,231
763,490
794,060
825,012
3,821,918
Total cost
Overall total
Headcount
Payroll
Bonuses
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SWOT analysis
Strengths:
• Community Center – the center primarily provides for the Canton community
• Location - proximity to Heritage Park and Pheasant Run Golf Club
• Cleanliness
• Staff knowledge/service
• Government owned and operated
• Design – spacious and open with natural light
• Diverse Program Offerings – many and varied for all ages and diverse
ethnicities
• No contract required
• Fitness classes included with membership
• Varied and flexible membership options
• Daily visit option
Weaknesses:
• Size (too small) – as the community grows we may need to look into expanding
• Lack and inconvenience of parking- no parking close to the building/have to
shuttle seniors and/or mothers with young children/disabled persons if needed
• Location – not directly off of major highway
• No outdoor pool
• Government owned and operated – people have preconceived notions of
government facilities, not well run and not offering adequate programming
• More outdoor activities around the Summit (tennis courts, outdoor pool, etc.)
• Website - Need to entice people to want to join and show them that having a
Summit membership can be life changing. (highlight our fitness and health
opportunities)
• Balancing community time with member and rental time
Opportunities:
• Location –On the civic campus along with the library, administration buildings,
and Heritage Park
• Cross marketing
• Cable TV, publications, databases, web development
• Partnerships
• Sponsorships
• Untapped markets – corporations, non-residents
Threats:
• Competition
• Economy
• Seasonality
• Limited discretionary time
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Competition
1. Lifetime Fitness: Significantly larger fitness center, outdoor pool, indoor/fixed
climbing wall, expanded childcare hours/facilities, cafe, upscale furnishings,
towel service, free locking lockers, open 24 hours and convenient location.
2. Curves, Ladies Workout Express and Fitness 19: Environments created for
specific groups, fast workout, less intensive. Also offered are social/support
groups, appropriate hours for stay at home parents and monthly payment
options.
3. Livonia Community Recreation Center: Offers a climbing wall, children’s play
area, fitness center, aquatic center with a competitive pool.
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Marketing
The Summit on the Park product mix
Facilities
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Summit on the Park
95,000 square foot cultural and recreational center
13,430 square foot Aquatic Center; featuring Lap Pool - 25 yards w/5
lanes, water slide and lazy river
6,000 square foot fitness center
Indoor track – 1/16 mile in length
Full size gymnasium - two basketball courts.
Racquetball court
Steam room
Sauna
Dance studios
Senior Center
Several meeting/conference rooms
Kid’s Corner
Two special accommodations locker rooms
Men’s and women’s aquatic locker room
Men’s and women’s fitness locker room
2,200 sq ft. aerobics studio
Cable studio
Banquet & Conference center
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Health and wellness classes / nutritional counseling
Land and aquatic fitness classes
Swim lessons
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Membership - Flexible, variety of options, reasonable Daily Rates
Personal Training
Parties/ Group Reservations
Kids Corner
Amenities - Locker Rooms etc.
Box Office for Village Theatre
Nutrition counselling
Wellness coaching
Group rentals
New members orientation
Cardio theatre
Vending
Locker rental (select groups)
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Programs
Services
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Products
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Pro Shop with convenience items
Leisure Services Gift Certificates
Advertising and promotion
Distribution methods:
Internal:
• Need to ensure that collateral reaches our target market i.e. distribute
appropriate flyers to targeted groups along with all classes and events.
• Facility cross marketing, bulletin boards etc.
External:
• Broadcast E-Mail. Release communication details via PDF to all members
on an as needed basis.
• Leisure Link. Monthly newsletter sent electronically to all members and email address lists
• Direct Sales to corporations, to include NR, members, part time residents,
senior housing and geographical locations.
• News releases, news advertisements and special event promotion and
coverage.
• Discover, Focus, and other printed material
• Canton Community Television
• Digital sign
• Website
Communication Matrix
• Press releases
• Renew and revise all marketing collateral pieces on a quarterly basis
• Print media advertising
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Public Relations
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Maintain relationships with newspaper media for major event coverage
Distribute printed material to partner businesses
Feature stories to highlight achievements and special community events.
Public Service Announcements (PSA)
Community Relations
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Actively participate with the chamber of commerce
Participate in local events
Create relationships with civic groups and community organizations
Free access to active duty military personnel
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Advertising
• Direct mail to former patrons
• Maintain bulletin boards and other internal communication activities
• Electronic Display’s - free in-house
• Newspaper inserts
Direct Sales
• Exhibit at trade shows - internal and external
• Corporate memberships
Internal Marketing
• Provide customer service training
• Update promotions at monthly staff meetings and solicit staff feedback
regarding consumer information etc.
• Continue employee/volunteer FAM tours
• Utilize customer comment cards for excellent customer service
Quality Service/Stewardship
• Development of customer service training
• Development of sales training
• Solicit member representation on appropriate citizen advisory boards
• FAM tours for staff so they may sell and positively represent our brand
Target Market Summary
The Summit on the Park is primarily intended for use by and for Canton Community
residents. While it is expected that non-residents will use the facility, they are not the
target market and incur increased participation costs so as not to benefit from the tax
subsidy paid by residents.
The Banquet and Conference Center portion of the facility is operated independently
and targets regional markets.
Market Assessment
With a population growth of more than 420 percent since 1970, Canton Township has
been one of the fastest growing communities in the state of Michigan. Canton is also
becoming an increasingly diverse community. Leisure Services staff must be
sensitive to recreational preferences based on cultural differences. Greater emphasis
will need to be placed on programs and services that enrich all residents in the
community.
Canton, like most communities will continue to grow older. As the older adult
population evolves, their definition of leisure continues to expand, becoming
progressively more active, both in physical and intellectual activities.
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Demographics
Prior to 1960, Canton Township was primarily an agricultural community and had a
population of only 5,313. With a population growth of more than 420 percent since
1970, Canton is now home to over 86,000 people. According to SEMCOG estimates,
Canton’s population is projected to exceed 98,793 by the year 2035.
Understanding the make up of the community is vital to success in the delivery of
services. Leisure Services staff are required to regularly review demographic
information to ensure that the facilities, programs and services provided are of interest
to, and meet the needs of, our residents.
Canton Community Population
Total population
Under 5 years
5 to 9 years
10 to 14 years
15 to 19 years
20 to 24 years
25 to 29 years
30 to 34 years
35 to 39 years
40 to 44 years
45 to 49 years
50 to 54 years
55 to 59 years
60 to 64 years
65 to 69 years
2000 (SEMCOG)
6,715
6,606
5,670
4,982
4,286
5,346
6,938
7,619
6,786
5,945
5,484
3,520
1,938
2005 American
FactFinder %
Estimates
9.40%
9.60%
9.10%
4.60%
4.40%
4.60%
7.80%
10.40%
9.90%
8.00%
7.00%
5.70%
2.60%
2008 SEMCOG
Population based
on % Estimates
8,004
8,173
7,747
3,916
3,746
3,916
6,640
8,854
8,428
6,811
5,959
4,853
2,213
1,385
1.80%
1,532
70 to 74 years
1,193
1.50%
1,277
75 to 79 years
958
1.50%
1,277
80 to 84 years
620
1.40%
1,192
85 years and over
375
0.70%
596
Total
76,366
100.00%
85,134
Source: SEMCOG (total popluation) & American FactFinder (age % estimates)
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Canton - Percentage of Population by Race
Race
White
Black
Asian or Pacific Islander
Hispanic, American
Indian & Other
Total Population
1990 Census
52,374
(91.8%)
1,155
(2.0%)
2,532
(4.4%)
1, 134
(1.43%)
2000 Census
62,846
(82.3%)
3,434
(4.5%)
6,648
(8.7%)
3,438
(4.5%)
2008 Estimated
64,106
(75.3%)
6,470
(7.6%)
12,259
(14.4%)
2,299
(2.7%)
57,040
76,366
85,134
Source: SEMCOG (total population and 1990 & 2000 %) & 2005 American FactFinder (race % estimates)
Target Market ID
(Market segments based on age, gender and experience)
1.
Business Person: Ages 25-45, Male and female. Visit between 5:30 a.m. and
8:00 a.m. two to three times per week.
2.
Stay at home parents: arrive between either; 9 and 11:30 a.m. or 1 and 3
p.m. This market includes parents that stay at home with the children, and
utilize Kids Corner and other programs while they utilize the facility.
3.
Students (16-22): This market will typically visit in the late afternoon/evening.
4.
Senior and Retired adults: generally visit in the early - mid morning into the
afternoon. This market will visit during times when the facility is not as busy.
5.
Single/Married active men and women, business professionals and the stay
at home parents will also be seen in the evening hours from 4:30pm to close.
This time is particularly appealing to these markets and the facility is
relatively busy.
6.
School and Community Groups: Typically Monday thru Friday during day
time hours, or after hour rentals. Also includes certain rehabilitation groups,
field trips and commercial groups.
Target Market Objectives
(Specific initiatives to achieve membership goals)
1. Membership sales during the summer months: Through modifications in our
promotion, price and competitive position within the market, an increase in
sales during the summer months (specifically our one and three month
memberships) is desired.
2. Geographic targeting: Represents looking at markets within a specific
geographic location to create a greater awareness of facilities where there
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seems to be a lesser number of memberships. Utilize GIS mapping to find the
concentration for our target market.
3. Current Members: Continue to cater to the needs, interests and benefits
sought by this captive audience through continued promotion and program
maintenance. Continually survey members to identify needs.
4. Enhance our website to entice people to join.
5. Offer different clubs to join for all ages and demographics (running club,
swimming club, walking club, jogging club)
Market Trends
Canton Leisure Services takes a multi-faceted approach to identify trends that affect
the community. Tools used include: review of community demographics, focus group
input from our Leisure Services Advisory Committee and staff members, attendance
at educational conferences and seminars that address the topic, review of usage
patterns and popularity of program offerings and community input via surveys. Canton
Leisure Services must proactively respond to trends and issues in order to remain a
vital force in shaping Canton’s economic, social and environmental future. There are
several clear trends that may influence future operations and must be analyzed to
determine potential impact.
Trend 1 – Environmental Stewardship
Individuals are becoming aware of environmental issues and are placing a priority on
the preservation and protection of natural areas. Environmental stewardship is
defined as the maintenance and improvement of our environment for the benefit of
present and future generations. Stewardship requires sound and sensitive
management practices accomplished through the preservation of wetlands,
environmental education, environmentally friendly products and conservation
of utilities.
Trend 2 - Passive Recreation
Canton residents have ranked walking/hiking/nature trails as the number one park
facility need for the community. This was evident in visioning workshops conducted
for the development of the master plan for Patriot Park and from the 2005 Canton
Leisure Services Community Survey. Over 77% of survey respondents ranked trails
as their 1st or 2nd choice for new facilities in the community. A 2nd splash park, dog
park and community gardens also received high rankings as respondent choices. In
order to meet the meet the desired needs of the community, special focus should be
placed on the development of greenways, community gardens, provision of nature
education and a dog park.
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Trend 3 - Health/Wellness
Health and wellness issues are at the fore front because of the increasing number of
unfit residents in Michigan and the economic impact of rising health care costs.
According to a study conducted by David Chenowith, PhD, one in four Michigan
residents is considered obese and at risk for chronic diseases like cancer, diabetes
and cardiovascular disease. Additionally, chronic diseases account for seven of
every ten U.S. deaths and for more than 60% of medical care expenditures. Lack of
physical activity and lack of leisure time are identified obstacles to improving health.
Leisure Services recognizes that the main focus is on prevention, and changing
lifestyles before an individual becomes a statistic. Prevention, outreach and
support are three critical factors believed to positively impact the overall health of the
community. Strategies will include: offering health screenings and a wide variety of
activity classes and health presentations to reach individuals at all fitness levels,
abilities, ages and days and times; inclusion of a health/wellness curriculum or event
in day camps, programs and special events; educate the community to make them
aware of resources that lend support and create opportunities to change health
behavior.
Trend 4 - Demographic, Social, Cultural
Canton has been one of the fastest growing communities in Southeast Michigan as
evidenced by the increase in population from the 2000 census. The Southeast
Michigan Council of Governments (SEMCOG) project that Canton’s population will
exceed 98,000 by 2030. CLS recognizes that it is imperative to understand Canton’s
demographics in order to provide services that are desired and meet the needs of the
community.
Boomers
Baby boomers have reshaped what it means to grow older. Compared with their
parents, boomers are healthier, better educated and living well into their 80’s and
beyond. The increasing lifespan has given boomers the chance to reinvent
themselves and pursue new passions at any age. As a whole, Boomers are more
affluent, tend to be more active than preceding generations and think of themselves
as younger than their parents at the same age. As they age, Boomers are shifting
from activities such as tennis and aerobics to less strenuous ones such as walking,
cycling, tai chi and yoga. Boomers are likely to live much longer and more than likely
boomer retirement will be a mix involving work, leisure and family. Canton Leisure
Services will need to provide a diverse range of health/wellness activities and other
programs at varied times to accommodate schedules and activity levels.
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Millennials
A millennial is anyone born between 1981 and 2000 and there are over 75 million
today. Just as the baby boomers changed society, the sheer numbers of millennials
can do the same. Millennials are technically literate – technology has always been a
part of their lives. They expect instantaneous feedback and gratification. The 2006
Cone Millennial Cause Study cites that tragic world events such as 9/11, coupled with
recent natural disasters have motivated the Millennial Generation to develop a strong
social conscience. Technology has given them a loud and powerful voice.
Millennials have been referred to as the most civic-minded generation since World
War II. The Cone Study suggests that Millennials are the most socially-conscious
consumers to date. Sixty-one percent of survey respondents are currently worried
about the state of the world today and feel personally responsible to make a
difference. Millennials want to live in communities and work for businesses that care
about how it impacts or contributes to society. As millennials become adults, they will
be the next generation of Canton homeowners. Programs and services will need to
be offered that are appealing. Easy access to amenities, location to parks, etc.,
varied communications methods and opportunities to give back to society are
key.
Culture/Heritage
Nationally the population is becoming more ethnically and racially diverse. This is
reflective in Canton where the Asian and African American population has more than
doubled since the 2000 census. Increasing ethnicity provides opportunity to expand
cultural awareness, but also presents a challenge to overcome language and social
barriers. The arts can be utilized to bridge cultural gaps, provide connectivity and
promote cultural awareness and tolerance. Historic preservation will promote the
inclusion of heritage education.
Limited Discretionary Time
Society as a whole is experiencing less discretionary time and in smaller segments.
Programs and services should be offered in more compressed time frames, at “nontraditional” times and with drop-in options.
Outreach
Providing services throughout the community is important to reach the entire
community. A focus should be made to partner with agencies to provide
recreation opportunities in identified at-risk areas, and provide services that
address identified parenting issues such as child abuse, building character, etc.
19
Trend 5 - Technology
As technology continues to evolve and become integrated into our everyday lives,
Canton Leisure Services needs to stay current in order to provide more efficient and
convenient service. Technology should be used for on-line purchases, virtual
tours, on-line support for health/wellness, marketing, enhanced
communication, facility security, and collection and management of data and
assets.
Trend 6 - The Changing Economy
According to University of Michigan economists hundreds of thousands of jobs,
mostly in manufacturing, have been lost since 2000. State-shared revenue has also
been reduced and a depressed housing market has adversely impacted taxable
values of property. These forces are requiring local municipalities to struggle with
budgets and often require them to find alternative funding sources. The Department
strives to properly maintain aging facilities, absorb rising fixed costs and enhance
services without increasing tax support. Canton Leisure Services needs to continue
to utilize the cost recovery system. Further development of partnerships and
sponsorships and expanded use of volunteers whenever possible will offset
expenses. The strategic use of resources and analytical assessment of proposed
services and capital expenditures will result in increased efficiency. By building
an identity and a reputation through enhanced public awareness and credibility of
services, the Department will ultimately be positioned as a necessity within the
Community.
Trend 7 - Higher Expectations of Service
Many adults today grew up with programmed recreation and continue to expect
services for themselves and their children. According to industry experts, hectic
schedules, family obligations and travel costs have resulted in an increased demand
for more flexible and convenient recreation opportunities. Dissatisfaction with the
economy, their perception of government and the inability to directly reach high
ranking (above local government) elected officials have created frustration. Residents
recognize that Canton officials and departments are accessible. By the nature of our
operation, Leisure Services staff is accessible and often deal with frustrated residents
who often have unreasonable expectations for customer service and unreasonable
demands on our facilities.
To combat this challenge, effective customer service is critical. Staff should
receive regular training on service standards and information and responses should
be provided to customers in a timely manner, facility schedules should be adjusted
in order to balance the need to generate revenue with rentals and community space
and member/drop-in time.
20
Financial plan
The goal for the increased revenue from the envisioned growth of membership sales
and facility usage will be used to offset rising fixed costs. Costs for full time wages
and benefits are rising at 6% per year while utilities continue to rise at approximately
10% per year. In partnership with the anticipated growth, it is imperative that strategic
pricing, conservative use of resources, and alternative funding remain at the forefront
of our attention. It is understood that all financial projections may need to be modified
based on availability of Township funds.
Generated income (sales)
Revenue for the Summit on the Park can be broken into three major
categories: Summit Users, Outside Users, and Reimbursements.
Summit Users include daily drop in users and members. Outside
users include Continental Catering, Rehab Institute of Michigan,
Party Rentals and General Rentals. Reimbursements come from
Cable TV and the General Fund. Below is a three year history of
expenses.
2006
$1,181,692
$ 274,759
$ 446,967
2007
$1,254,551
$ 221,047
$ 460,680
Operating Expenses $3,060,902
$2,423,986
$2,357,134
Operating Net
($520,568)
($420,856)
Summit Users
Outside Users
Reimbursements
2005 *
$1,193,298
$ 975,072
$ 434,073
($458,459)
*Note: In 2005 all Banquet facility transactions were run through the
Summit budget. Beginning in 2006, transactions were transferred to
Continental Catering and only the Summits revenue portion of
banquet transactions are shown in the Summit budget.
The target area for growth is with the Summit Users revenue.
Membership sales have shown steady growth since 2001. The
Summit as averaged 20% increase in membership sales since 2001,
and 9% over the past three years. Through focusing on the several
initiatives listed below, it is anticipated that Summit Users will
21
continue to grow at a rate of 5% per year. Current facility usage
patters show that there is room for growth in usage especially at not
peek times.
Summit Membership Sales History
10,000
8,000
5,575
6,000
4,000
8,145
7,644
6,324
6,510
6,236
3,055
2,000
0
Total Sales
2001
2002
2003
2004
2005
2006
2007
3,055
5,575
6,324
6,236
6,510
7,644
8,145
82%
13%
-1%
4%
17%
7%
% Change
Summit Daily Participation Averages by Area
600
500
400
300
200
100
Gym Daily Average
Aquatic Center Daily Average
D
ec
e
m
m
ov
e
be
r
be
r
er
ob
O
ct
N
Se
pt
e
m
be
r
t
gu
s
Au
Ju
ly
ne
Ju
M
ay
ril
Ap
ch
M
ar
ry
br
ua
Fe
Ja
nu
ar
y
0
Fitness Center Daily Average
22
Summit Operating Capacity by Area
Aquatic Center Oper. Capacity %
D
ec
e
m
m
be
r
be
r
er
ov
e
N
O
ct
m
be
pt
e
Au
Se
Gym Oper. Capacity %
ob
r
t
gu
s
ly
Ju
ne
Ju
M
ay
ril
Ap
ch
M
ar
ry
br
ua
Fe
Ja
nu
ar
y
80%
70%
60%
50%
40%
30%
20%
10%
0%
Fitness Center Oper. Capacity %
Operating Capacity is determined by the following:
Fitness Center
Gym
Aquatic Center
Fire Code Max Capacity
115
575
300
Desired Operating Capacity
70%
81
17%
98
66%
198
Sales Initiatives
1. Membership Sales to target one, three, and six month pass holders. Create an
awareness of savings when purchasing an annual membership.
2. Senior membership sales targeting those 55 and over. Create an awareness
of the matinee package and the benefits of this option.
3. Non-resident memberships focus on those working in Canton both male and
female.
4. Part-Time residents focus on markets such as students, snowbirds and
teachers.
5. Newcomers to the community
6. Matinee Memberships valid daily from 7am to 4pm. Targeting at home parents
and shift workers who are available to come during specific non-peak hours at
a reduced rate.
23
2008
Summary
Summit
on the
Park
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total
208,672
189,179
164,959
139,740
147,316
139,799
133,047
118,167
125,885
121,410
130,711
155,204
1,774,086
18,875
18,875
18,875
18,875
18,875
18,875
18,875
18,875
18,875
18,875
18,875
18,875
226,500
227,547
208,054
183,834
158,615
166,191
158,674
151,922
137,042
144,760
140,285
149,586
174,079
2,000,586
Revenue
Total sales
Food/Rental Income
Cost of goods sold
Gross profit
Operating expenses
General & Administrative
Bad debts
Losses & thefts
Credit Card Fees
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
14,000
Operating Supplies
693
1,136
5,756
3,758
2,323
4,242
2,861
4,126
3,398
3,325
4,556
3,076
39,250
Dues and licenses
348
348
348
348
348
348
348
348
348
348
348
348
4,175
Utilities
947
34,339
51,961
16,996
42,156
22,527
44,511
33,505
30,378
26,384
32,694
53,601
390,000
20
20
20
20
20
20
20
20
20
20
20
20
240
214,329
Magazines/subscriptions
Maintenance/repairs
20,044
42,038
23,742
11,850
17,703
17,384
12,068
11,478
14,011
12,787
12,369
18,855
Office expenses
417
417
417
417
417
417
417
417
417
417
417
417
5,000
Contracted Services
796
4,623
4,424
2,299
2,448
1,890
701
2,189
1,575
1,531
5,874
28,350
Program Supplies
1,493
1,726
776
673
1,067
2,607
1,430
647
1,143
193
2,294
3,631
17,680
Other
1,378
1,378
1,378
1,378
1,378
1,378
1,378
1,378
1,378
1,378
1,378
1,378
16,541
42
42
42
42
42
42
42
42
42
42
42
42
500
9,376
9,376
9,376
9,376
9,376
9,376
9,376
9,376
9,376
9,376
9,376
9,376
112,516
Salaries and benefits
41,972
41,972
41,972
41,972
41,972
41,972
41,972
41,972
41,972
41,972
41,972
41,972
503,661
Payroll burden
16,789
16,789
16,789
16,789
16,789
16,789
16,789
16,789
16,789
16,789
16,789
16,789
201,464
PT Wages
36,149
67,258
91,567
60,964
62,748
60,554
64,605
72,395
50,859
51,848
24,983
79,654
723,584
Overtime
3,373
3,373
3,373
3,373
3,373
3,373
3,373
3,373
3,373
3,373
3,373
3,373
40,476
PT Fringes
3,615
6,726
9,157
6,096
6,275
6,055
6,461
7,240
5,086
5,185
2,498
7,965
72,358
444
992
3,221
1,353
2,420
5,121
4,960
1,528
2,293
1,076
121
4,142
27,672
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
30,000
144
144
144
144
144
144
144
144
144
144
144
144
1,725
141,706
236,363
268,129
181,514
212,217
198,463
216,311
209,143
186,882
179,898
158,572
254,323
2,443,521
85,840
-28,309
-84,295
-22,899
-46,026
-39,790
-64,389
-72,101
-42,123
-39,613
-8,986
-80,244
-442,935
8,527
8,527
8,527
8,527
8,527
8,527
8,527
8,527
8,527
8,527
8,527
8,527
102,328
77,313
-36,836
-92,822
-31,427
-54,554
-48,317
-72,917
-80,629
-50,650
-48,141
-17,513
-88,771
-545,263
Telephone/fax/mail
Internal Transfers
Personnel
Sales promotion
Advertising/promotion
Internet
Insurance
Liability insurance
Other insurance
Transportation
Travel
Vehicle costs
Total operating
expenses
EBITDA
Depreciation
Net business result
24
Cash in / Cash out per month
year 1
300,000
250,000
200,000
Cash in
150,000
Cash out
100,000
50,000
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sales/month per sales area
year 1
90,000
80,000
70,000
Daily Visit Resident
60,000
Daily Visit Non Resident
Family Resident Membership
50,000
Family Non-Resident Membership
40,000
Individual Non Resident Membership
30,000
Individual Resident Membership
20,000
Other Revenue
10,000
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Sales estimates –
Note: projections use:
5% increase per year in sales per sales area
15% increase per year in sales price for Daily Visits
10% increase per year in sales price for Memberships
6% increase per year in sales price for Other Revenue
2008
2009
2010
2011
2012
Total
Daily Visit
Resident
Adult
11,886
13,867
15,849
18,113
20,700
Child
2,133
2,667
3,200
3,840
4,608
16,449
58,565
68,900
79,235
91,120
104,788
402,609
870
1,044
1,217
1,420
1,657
6,208
4,561
5,473
6,385
7,449
8,691
32,558
Punch Card
Senior
Student
80,415
25
Net sales
78,015
91,951
105,886
121,943
140,445
538,239
78,015
91,951
105,886
121,943
140,445
538,239
Adult
6,818
7,954
9,090
10,389
11,873
46,125
Child
464
696
696
696
696
3,247
10,200
11,700
13,500
15,577
17,973
68,950
387
464
541
631
736
2,759
1,140
1,368
1,596
1,862
2,173
8,140
19,008
22,182
25,424
29,155
33,452
129,221
19,008
22,182
25,424
29,155
33,452
129,221
Cost of goods
Cost of goods %
Gross profit
Daily Visit Non Resident
Punch Card
Senior
Student
Net sales
Cost of goods
Cost of goods %
Gross profit
Family Resident Membership
1 Month
10,625
11,688
12,856
14,142
15,556
64,867
3 Month
64,600
71,060
78,166
85,983
94,581
394,389
6 Month
27,300
30,030
33,033
36,336
39,970
166,669
250,800
275,880
303,468
333,815
367,196
1,531,159
Annual Plus
12,320
13,552
14,907
16,398
18,038
75,215
Monthly Pmt Plan
61,828
68,011
74,812
82,293
90,522
377,466
2,080
2,288
2,517
2,768
3,045
12,699
429,553
472,508
519,759
571,735
628,909
2,622,464
429,553
472,508
519,759
571,735
628,909
2,622,464
Annual
Plus Pmt Plan
Net sales
Cost of goods
Cost of goods %
Gross profit
Family Non-Resident Membership
1 Month
1,190
1,309
1,440
1,584
1,742
7,265
3 Month
1,140
1,254
1,379
1,517
1,669
6,960
4,440
4,884
5,372
5,910
6,501
27,107
6,770
7,447
8,192
9,011
9,912
41,332
6,770
7,447
8,192
9,011
9,912
41,332
6 Month
Annual
Annual Plus
Monthly Pmt Plan
Plus Pmt Plan
Rebates & allowances
Net sales
Cost of goods
Cost of goods %
Gross profit
Individual Non Resident Membership
1 Month
2,300
2,530
2,783
3,061
3,367
14,042
3 Month
7,920
8,712
9,583
10,542
11,596
48,352
6 Month
Annual
2,720
2,992
3,291
3,620
3,982
16,606
12,650
13,915
15,307
16,837
18,521
77,230
25,590
28,149
30,964
34,060
37,466
156,230
Annual Plus
Annual Pmt Plan
Matinee
Plus Pmt Plan
Net sales
Cost of goods
26
Cost of goods %
Gross profit
25,590
28,149
30,964
34,060
37,466
156,230
Individual Resident
Membership
1 Month
29,300
32,230
35,453
38,998
42,898
178,879
3 Month
115,020
126,522
139,174
153,092
168,401
702,209
6 Month
52,020
57,222
62,944
69,239
76,162
317,587
204,325
224,758
247,233
271,957
299,152
1,247,425
1,900
2,090
2,299
2,529
2,782
11,600
57,159
62,875
69,162
76,079
83,686
348,961
110,815
121,897
134,086
147,495
162,244
676,537
1,200
1,320
1,452
1,597
1,757
7,326
571,739
628,913
691,804
760,985
837,083
3,490,524
571,739
628,913
691,804
760,985
837,083
3,490,524
45
50
54
60
66
275
13,877
Annual
Annual Plus
Annual Pmt Plan
Matinee
Plus Pmt Plan
Net sales
Cost of goods
Cost of goods %
Gross profit
Personal Services
Fitness Evaluation
Group PT
Nutrition Consultation
PT 1
2,273
2,500
2,750
3,025
3,328
PT 10
10,262
11,288
12,417
13,659
15,025
62,651
PT 15
23,323
25,655
28,221
31,043
34,147
142,389
PT 3
8,274
9,101
10,012
11,013
12,114
50,514
PT 5
5,963
6,559
7,215
7,937
8,730
36,405
50
55
61
67
73
305
Net sales
50,190
55,209
60,730
66,803
73,483
306,415
Cost of goods
35,133
38,646
42,511
46,762
51,438
214,490
Cost of goods %
70.0%
70.0%
70.0%
70.0%
70.0%
70.0%
Gross profit
15,057
16,563
18,219
20,041
22,045
91,924
Sports Nutrition
Cash in / Cash out quarterly
3 years
3,500,000
3,000,000
2,500,000
2,000,000
Cash in
1,500,000
Cash out
1,000,000
500,000
0
1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
2008
1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
2009
1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
2010
27
Sales/quarter per sales area
3 years
900,000
800,000
Daily Visit Resident
700,000
Daily Visit Non Resident
600,000
Family Resident Membership
500,000
Family Non-Resident Membership
400,000
Individual Non Resident Membership
Individual Resident Membership
300,000
Other Revenue
200,000
100,000
0
1st
qtr.
2nd
qtr.
3rd
qtr.
4th
qtr.
2008
1st
qtr.
2nd
qtr.
3rd
qtr.
4th
qtr.
2009
1st
qtr.
2nd
qtr.
3rd
qtr.
4th
qtr.
2010
Total sales
5 years
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
2008
2009
2010
2011
2012
28