Lopez Swim Center | Summary of Financial Projections, October 2023

Highlights

• A low-interest loan through OPALCO’s Switch It Up program will pay for heat pumps.  A bridge loan/line of credit will be utilized for cash flow during construction to cover donor pledges and State commitments.
• Conservative revenue and expense projections target financial sustainability for the Lopez Swim Center by Year 3, with contingency planning built into the projections.
• A capital and maintenance reserve fund has been seeded with $510,000 (Year 1), grows to $775,000 (Year 10) and $1.89M by Year 20. These funds are earmarked for equipment repair / replacement and are funded from operations.
• A diversified income stream, including memberships and daily/weekly passes, swim lessons, camps, special events, and retail sales, will help ensure the Center’s financial sustainability.
• The Lopez Swim Center will draw upon four user markets, including full-time and part-time residents and their families and friends; residents of neighboring islands; and seasonal visitors.
• The majority of revenue (67%) will be generated by Memberships & Daily Use fees; 45% of this revenue is projected during summer months, when Lopez tourism peaks with 80,000 visitors over a 13-week period according to the SJC Tourism Bureau. Market penetration for full-time Lopezians obtaining annual memberships are conservative and includes discounted memberships between 50-90% for those needing financial assistance. Projections are that annual revenue generated from Lopez full-year and school-year memberships constitute only 37% of the gross income each year.