DLCCC Budgeting for Revenue Loss of more than $340,000 Next Year, will Increase Payroll by 2.5%

DETROIT LAKES (KDLM) – The Detroit Lakes Community and Cultural Center has reported a $999,000 loss in revenue over the past year.

A 40% drop in memberships during the pandemic is said to be the cause of the revenue drop.

Peter Jacobson, the CEO of the DLCCC indicated pre-COVID the DLCCC had about 1250 membership contracts (3,500-4,000 members), currently they sit just below 800 contracts.

Jacobson presented his yearly budget to the City on Tuesday, planning to grow revenue during the fiscal year by about 23%, “We’re beginning to budget for growth, but we’re conservative…we budgeted for $300,000 of that lost revenue to come back.”

Despite the lost revenue, Jacobson is still planning to budget a 2.5% payroll increase for staff citing the need for competitive wages and an overall worker shortage. In some instances the DLCCC has had to close the pool because of the lack of available lifeguards, “It has become very very challenging to find lifeguards, there are way more opportunities for kids today – we’ve had to make additional adjustments.”

Ron Zemen, Detroit Lakes Council member and Finance Committee Chair argued during Tuesday’s council meeting that this might not be a great time for a payroll increase, “We’re taking in less revenue and we’re giving raises; in most businesses when your revenues aren’t coming in, most people don’t get raises.”

The DLCCC is budgeting for a total loss of around $344,000 in the coming year and Jacobson says the board is not recommending an increase in membership rates to help offset the loss. The city and Detroit Lakes Public Utilities have allocated nearly $300,000 to help fill the gap and the DLCCC is planning to look for additional business support throughout the community for help.

The Detroit Lakes City Council unanimously approved the DLCCC’s budget, Tuesday.