Financial strategies for sustaining Carmel Clay Parks & Recreation
Thanks to the community’s significant investment in parks and recreation infrastructure, Carmel Clay Parks & Recreation (CCPR) has achieved much success in providing world-class amenities that improve the quality of life of our residents and visitors. Today, CCPR manages a 692-acre park system with an estimated asset value of over $407 million. To sustain existing assets and provide new amenities for our growing community, continued financial investment into the park system is required.
Achievements and Challenges
CCPR’s financial position must be viewed in several different lights. Due to its successful management practices, CCPR is an undisputed industry leader in achieving high levels of cost recovery in its operations minimizing reliance on tax dollars. CCPR has consistently maintained sufficient reserves to weather unforeseen circumstances in its revenue-generating operations, which was most evident during the height of the COVID-19 pandemic during which no tax subsidies were required for the Monon Community Center or Extended School Enrichment programs.
The City of Carmel has consistently provided additional tax funding necessary to manage expanding amenities in the park system that do not have the ability to generate revenue. This places the department in a sound position to maintain recently renovated parks, made possible in large part by the Clay Township Impact Program, and newer park spaceslike Monon Boulevard and Midtown Plaza, developed by the City of Carmel.
As a result of the $55 million Central Park lease-rental bond originally issued in 2002, Clay Township currently receives a larger share of Local Income Tax (LIT) than it otherwise would receive. Under an agreement between the City of Carmel and Clay Township, this LIT is dedicated to CCPR for capital projects. From 2008 through 2023, CCPR received a cumulative total of $46,893,660 in LIT from the Township, which has been critical to the development of the park system. Once the Central Park Bond is paid off in January 2025, Clay Township will no longer have obligations to provide LIT or any other funding to CCPR.
Looking Toward the Future
CCPR is exploring opportunities to pursue new revenue sources to address future capital needs. A resource development coordinator was recently hired and tasked with building relationships within the community to secure gifts, donations, sponsorships, and grants that supplement the department’s other funding sources. Notably, CCPR received $5 million of grants in 2023, many times more than the department received in its first 32 years of existence. CCPR is also investigating funding mechanisms that may be available to the Park Board, Clay Township, and/or the City of Carmel to bring in new revenue without adversely impacting funding for other services.
Without new funding sources to replace the LIT currently received from Clay Township, CCPR will not have the financial means to make capital repairs and replacements to existing infrastructure, let alone acquire and develop new assets. CCPR understands the importance of routinely renovating and updating revenue- generating amenities like the Monon Community Center and The Waterpark to maintain customer satisfaction that ultimately drives pass sales and revenue. Failure to do so risks creating a downward cycle for the department. Resolving CCPR’s capital funding is a top objective of the Park Board and elected officials to ensure the long-term success of the park system.
If you are interested in contributing to Carmel Clay Parks & Recreation through a sponsorship or donation, please contact Kari Berger, resource development coordinator, at 317.573.4017 or kberger@carmelclayparks.com.
Written By: Michael Klitzing
Michael is the Director of Parks and Recreation at Carmel Clay Parks & Recreation.
