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This is not the first time the JCC has
faced budget imbalances, said Sorkin,
who has served as executive director
since 1996.
He pointed out that he was hired in
the wake of a large deficit situation in
1994-95.
"Due to the age of the building and
due to some cost efficiencies of the
past, we needed to spend more money
to get the building operating more
efficiently, to get the systems operating
more efficiently," Sorkin said.
"Together with Federation, we creat-
ed a five-year budget plan shortly after
I arrived in 1996 with the recognition
that the Center would have deficits for
the period between 1996 and 2003.
Federation agreed to support that
deficit during that period of time.
"So having deficits was a planned
concept for what I call the renovation
period."
But this year had many unexpected
expenses, Sorkin said. Because of the
unusually long winter and high cost of
gasoline, energy costs exceeded their
budget by $150,000, he said.
Mechanical equipment, including air
conditioning, needed major repair or
replacement. And, since most of the
equipment at the West Bloomfield
JCC has exceeded its recommended
life, more equipment costs are on the
horizon.
Today, the JCC estimates it costs
$2.5 million to maintain its invest-
ment on its two buildings each year,
counting only utilities, maintenance
and supplies.
Construction delays in many areas
considered revenue-raisers, including
the health club, sports and fitness
wing, and Milk and Honey restaurant,
have hurt the JCC's ability to raise
revenue, Sorkin said. All construction
and renovation projects, originally
scheduled to be done by 2003, should
now be complete by 2006, he said.
A second Federation task force, the
Applebaum Campus Authority, head-
ed by Robert Slatkin, immediate past
president of the United Jewish
Foundation of Metropolitan Detroit,
monitors the renovations.
Community members frequently ask
how the JCC can afford to proceed
with its renovation plans with multi-
million dollar deficits.
However, renovation, technology
improvements and other bricks-and-
mortar and program improvements
designated in advance are funded
through the JCC's $35-million capital
and endowment campaign begun
three years ago. So far, the campaign
has raised $33. million, Sorkin said.
Money donated for capital projects
must be used only for new buildings
or facility improvement. Endowment
funds — $7-$8 million of the cam-
paign — are earmarked for specific
programs.
Neither may be used for general
operating expenses.
In addition, proceeds from the cam-
paign, part of the Federation's
Millennium Campaign for Detroit's
Jewish Future, are not received in one
payment but, depending on the type
of contribution, are spread over three-
five years, Sorkin said.
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Hart anticipates that JCC member-
ship, which has accounted for about
$2 million in revenue for each of the
past five years, will not rise substan-
tially until renovations to the West
Bloomfield Center are complete. In
fact, the inconvenience caused by
ongoing construction may cause mem-
bership numbers to fall slightly. This
year, JCC membership stands at 5,000
billing units, or about 10,000 mem-
bers.
Once renovations are done, Hart
forecasts major increases in building
usage. "Since [Marion and David] .
Handleman Hall has been renovated,
it has been used not 50 times as
much, but 100 times as much," she
said.
At the Sarah and Irving Pitt Child
Development Center, where renova-
tion should be complete by the start of
the school year, enrollment has exceed-
ed expectations.
Although the Federation has
increased its JCC allocation every year
for at least five years, Krugel said no
promises are ever made for the future,
in case Federation's Annual Campaign
comes up short. Starting with the
1997-98 fiscal year and including the
2001-2002 fiscal year, annual
Federation allocations have risen from
$1.65 million to $2.5 million. The
long-term projected budget worked
out by Federation and JCC officials
calls for allocations to begin a gradual
decline in 2002-2003.
Mark Davidoff, the Federation's
chief operating officer and executive
director, is optimistic about the JCC's
ability to pull out of its deficit.
"Together, the Federation and the
Center have projected what we can
assume to be the operating costs for
the next few years," Davidoff said.
"Together, we will work to provide the
necessary funding." LI
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