Dear Commissioners,
I have reviewed the financial implications of Ordinance No. 6548 of 2025, which allocates $10 million in bonds for the construction of a parish pickleball facility. Based on the budget, bond structure, and projected revenues, I would like to share a clear breakdown of costs, usage requirements, and investment risks for your consideration.
📊 Total Cost of Operation
Annual Cost (Operations + Debt Service): ≈ $1.55M – $1.62M
Monthly Cost: ≈ $130,000
Daily Cost to Open: ≈ $4,300–$4,500
This means the facility must generate at least $4,300 every day, 365 days per year, to cover operating expenses and debt repayment.
💵 Revenue Model (at $11/player-hour)
Using 19 courts, 10 playable hours per day, and 30 operating days per month:
Break-even Point: ≈ 394 player-hours per day (≈263 actual players if average stay = 1.5 hours).
Court Utilization: ≈ 52% of daily capacity (each court busy ~5.2 hours/day).
This assumes consistent participation every day of the month.
🧾 Estimated Cost Breakdown
Category Annual Monthly Daily
Debt Service $780,000 $65,000 $2,170
Salaries & Benefits $400,000 $33,300 $1,110
Utilities $120,000 $10,000 $333
Insurance $60,000 $5,000 $167
Maintenance & Repairs $75,000 $6,250 $208
Supplies & Equipment $50,000 $4,200 $140
Marketing & Admin $40,000 $3,300 $110
Other/Contingency $25,000 $2,100 $70
Total $1.55M $129,150 $4,308
⚠️ Weaknesses & Risks
High Fixed Costs: Nearly half of all expenses are bond debt service, which must be paid regardless of participation.
Heavy Utilization Requirement: The park must maintain 50%+ daily capacity usage year-round to break even, which is ambitious.
Seasonality & Participation Risks: Bad weather, competing recreational options, or slower adoption could reduce bookings.
Tournament Dependency: Much of the projected revenue depends on frequent large-scale tournaments; if they underperform or are not secured, revenue falls short.
Taxpayer Backstop: Parish documents acknowledge that if revenues do not meet obligations, the Parks & Recreation Fund will be required to cover deficits.
📉 Investment Verdict
From an investment perspective, the project carries significant financial risk. While it may provide recreational and community benefits, the revenue requirements are high, the margin for error is slim, and sustainability depends heavily on optimistic usage and tournament projections.
This resembles more of a public amenity (like a golf course or natatorium) than a self-sustaining enterprise. Without consistent, high-volume participation and tournament activity, the project is unlikely to generate sufficient revenue to fully cover debt and operations without additional taxpayer subsidy.
Conclusion:
Before proceeding, I urge careful consideration of the long-term financial commitments and risks to the Parish. A more conservative feasibility study or phased investment plan could help safeguard public funds while still supporting pickleball growth in our community.
If any of my assumptions or numbers are incorrect, I welcome clarification and guidance. My intention is simply to present a transparent view of the projected costs, revenue requirements, and potential risks, so the people of Caddo Parish—and the decision-makers—can understand both the advantages and the challenges of this project. Providing clear, accurate numbers allows the people of Caddo Parish to make informed decisions, without casting judgment or assigning blame.
I also strongly encourage the Commission to consider presenting a similar detailed analysis, including projected costs and potential revenue, so that all stakeholders can clearly understand the financial implications and make well-informed decisions regarding this project.
Furthermore, if this project is to be presented publicly or during the planned “roadshow” to promote the facility, it is important to include the numbers and math behind the costs and revenue projections. Transparent presentation of these figures will help the public and potential supporters evaluate the project objectively and understand both the risks and benefits.
Thank you for your time and service.
Respectfully,
Shannon Johnston
Entrepreneur, Author, Radio Host
Sound Words
http://www.soundwords.biz
Simply Aquaponics
http://www.simplyaquaponics.biz
Visions and Ventures
http://www.visionsandventures.biz