Mozingo is an enterprise fund

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Recently it was suggested that I write a column to communicate with citizens on city business. I agree that this forum could be a great opportunity to discuss ongoing initiatives and challenges facing our community. If we’ve learned anything over the last five years, it’s to seek all the facts prior to making assumptions, exchange in respectful discourse, and improve our knowledge on all things that impact our community. I’m excited for the opportunity to play my part and hopefully share in those conversations.

Over the past few years, Mozingo Lake Recreation Park has steadily progressed into a regional tourist destination. While celebrated as our water source and for the quality of recreation it provides, the park now serves as one of the primary economic drivers for the area.

In 2015, the City hired Economic Modeling Specialists International (EMSI) to perform an economic impact study on its importance to the local economy. The report indicated that Mozingo welcomed 467,747 annual visits with 266,616 (57%) of those from outside the region. The guests spent an average of $32.57 per visit in the community. Those figures, coupled with operational spending, equaled a total of $9.6 million in added annual sales to the local economy. That means the approved ½ cent sales tax providing $1 million in revenue toward the park is returned with over nine times that amount in local sales.

The economic impact study was also completed as a baseline prior to the opening of the Watson 9, Boulders Inn & Suites, and Conference Center. So while Mozingo provides improved quality of life to our citizens, I for one am proud to welcome visitors from all over the country who want to embrace our park and spend money locally.

The Conference Center at Mozingo Lake Recreation Park will play a feature role in expanding that community tourism over the next 20 years. Supported by a market feasibility study from 2012, construction of the facility marks the completion of a five-year economic development mission originating from several citizens, former Councilmember Glenn Jonagan, and late Councilmember Jim Fall. They were able to see the vision, support it with research, and motivate staff to make it a reality. With that vision now comes the reality that it represents the single most expensive endeavor in Mozingo’s history. With ongoing fiscal responsibility and support of a voter approved 1/8 cent sales tax, construction began on the nearly $5 million facility in late 2016. In January, 2018 the Conference Center will open to the public to drive weddings, conferences, and corporate events to Maryville. The facility will also look to capture spending leaving the community due to the lack of a destination venue.

With progress and spending such as this, a frequent comment is “Look at all that money being spent at Mozingo! We have city streets in need of repair and that money needs to be spent (fill in the blank).” I’m positive that several citizens reading this right now are beginning to nod their heads, which indicates we have done a poor job of explaining the park’s financing.

Mozingo Lake Recreation Park is financed by the Mozingo Recreation Fund which is considered an Enterprise Fund of the City. An enterprise fund establishes a separate accounting and financial reporting mechanism for services in which a fee is charged in exchange for goods or services. Under enterprise fund accounting, the revenues and expenditures are separated with its own financial statements, rather than comingled with revenues and expenses of all other government activities. In layman’s terms – Mozingo Lake Recreation Park stands alone, much like the Water/Sewer Fund. Mozingo revenues are derived from two primary sources, 1.) User fees for various park amenities and 2.) ½ cent sales tax renewed by voters last April.

The tax is authorized under state statutes and cannot be used for any other purpose. Even if the city desired to utilize these funds for road repairs throughout town, it could not. As an enterprise fund, all Mozingo staff, maintenance expenses, and various park improvements come solely from this fund. The recently approved 1/8 cent sales tax for the construction of the Conference Center is also in the same format.

While it’s natural to desire a shift of funds from park operations to other community needs, it’s necessary to understand the funding mechanisms used for these initiatives and their limitations. While Mozingo’s growth is dynamic, it has a self-contained funding structure that does not compete for scarce resources with city infrastructure.

The Conference Center at Mozingo Lake Recreation Park is positioned to be a significant draw for Maryville, the region, and the State of Missouri. In the next few weeks a grand opening date for the facility will be announced. On behalf of the City Council and staff, we hope to see you there to help us embrace it as a long-term asset for our community.

Greg McDanel is the Maryville City Manager.