Fifteen years on the edge: Hyland Hills Water World.

Hyland Hills Water World, located in Federal Heights, CO, proudly celebrated its 15th anniversary this summer. In 1993 Water World became the largest family water park in North America, with 27 attractions on more than 50 acres including Calypso Cove, containing the biggest interactive water structure in America, and the truly incredible Voyage to the Center of the Earth, a $2 million, 1,600-foot "dark" family tube ride complete with animated dinosaurs and sea monsters. From its humble beginning in 1978, Water World has been and remains on the edge of creativity, technology, unpredictability and, on occasion, controversy.

Water World is owned and operated by Hyland Hills Park and Recreation District. Officially known as "a quasimunicipal corporation and governmental subdivision of the State of Colorado," Hyland Hills was organized in 1955 as the first park and recreation district in Colorado. The main source of revenue in the district's early days of operation came from property taxes with supplements from user fees. By the mid 1970s, more than 50 percent of the budget of Hyland Hills came from property taxes-growth of which was severely limited both by statute and public opinion. If Hyland Hills was to continue to provide quality recreation programs and facilities in the face of increasing inflationary costs, revenues from alternative sources were a necessity.

The board of directors and staff of Hyland Hills began to search for alternative revenue sources that would also provide family-oriented, quality recreation for its residents. With a mixture of imagination and gamblers' optimism, the district proposed constructing a wave pool and water slide on undeveloped property owned by the district in the Town of Federal Heights, a small suburb of Denver. Construction was to be financed from the proceeds of a general obligation bond issue requiring voter approval. After much hard work by area residents, a bond issue in the total amount of $2.75 million was approved, of which $1.3 million went to the construction of an 18,000-square foot wave pool and two 400-foot water slides. The two water slides opened in August of 1979 and the wave pool opened the following summer.

From the outset, Water World was a success. Charging 25 cents each or five for a dollar for a ride down the two water slides, revenues generated in the first month of operation were sufficient to cover expenses. In its first full summer of operation (Water World's season runs from Memorial Day to Labor Day), Water World generated more than $500,000 in gross revenues and a surplus of general operating revenues over expenses of 8195,000. Water World accounted for 17.5 percent of total district expenditures and 28 percent of total district revenues.

Property taxes as a percentage of total revenues had decreased from 54 percent in 1979 to just 25.5 percent in 1980. The plan was working!

Since its beginning in 1979, Water World has generated revenues of more than $40 million dollars. Nearly four million people have been guests at the park. In 1992, Water World reported gross revenues of $4.8 million with general operating expenditures of $2.75 million (exclusive of debt service). This translated to 40 percent of total district revenues and 24 percent of total district expenditures. Property taxes accounted for only 13.5 percent of total district revenues. Water World revenues have been used to subsidize more traditional recreational activities such as youth care programs, senior activities and athletics-programs the district would have much difficulty in offering at an affordable price without such subsidies. If this sounds like the answer to every governmental entity's prayer for the proverbial cash cow--an easy way to subsidize limited budgets--hold that thought as we explore some of those interesting "edges" you may encounter.

Hyland Hills Park and Recreation District owns and operates: an indoor ice arena; a 54-hole miniature golf course; a golf course including 27 regulation holes, two par 3 courses and all the usual amenities; three outdoor pools; 22 parks; three community buildings and numerous sports fields serving a population of over 89,000. The district has a full-time staff of 66 that manage to keep very busy all year long. However, from May to early September, Water World will become the district's number-one priority.

Edge #1: Staffing

In 1993, more than 700 teenagers and young adults were hired to work in the park as cashiers, lifeguards, concessions workers and groundskeepers, making Water World the second largest employer of young people in the state. It is an enormous undertaking for personnel, park management and accounting to recruit suitable staff, process the necessary paperwork, verify information (especially age), make sure that workers compensation insurance is up to date, arrange for training, distribute uniforms and prepare initial schedules-all while the new employees and most of the supervisory staff are still attending school. This process is further complicated by the fact that Water World employees come from a number of separate school districts, each with its own unique summer vacation schedule. Those who have worked with teenagers will also understand the ongoing scheduling problems they present.

Team members 14 and 15 years old will work as groundskeepers. Local and federal laws severely restrict the number of hours worked and the types of activities assigned to this age group and to a lesser degree for teenagers in general. Schedules will have to be carefully scrutinized to ensure that there are no inadvertent labor law violations. Hiring procedures must also ensure proper proof of age, social security registration, parental consent, proper emergency information and so forth. Since the park opens before school vacation starts, time is extremely limited for training and testing, placing further time and energy requirements on an already burdened full-time staff.

Edge #2: Park Opening

At the same time, the park must be prepared for opening. Grass must be fertilized; trees pruned; flowers planted; buildings painted; water lines, pools and flumes cleaned and painted; parking lots restriped; electrical equipment inspected; concession equipment inspected and prepared for use; light bulbs changed; flags cleaned and hung, awnings placed in position; winter damage repaired--the list goes on and on. This can be especially difficult when you consider the unpredictable Colorado weather, where spring storms may dump a foot of snow in late May. In addition, cleaning supplies, foodstuffs, perishable items, cups, spoons, condiments, uniforms, retail shop clothing inventory, repair and replacement parts and a thousand and one other items necessary for the smooth operation of the park must be ordered, received, stocked and distributed.

Edge #3: Competition for Leisure Dollars

Even after all these preparations have been made and the park and its staff are ready for opening day, there is much more to be done. The Denver metropolitan area has many top-notch recreational facilities competing for the consumer dollar. The Colorado Rockies, the National League's newest baseball team, has been hugely successful in breaking every major league attendance record with crowds averaging well over 50,000 per game. A number of other major amusement parks, family entertainment centers, movie theaters and countless other attractions are all after limited recreational dollars. In order to remain competitive, Hyland Hills must advertise and promote Water World as aggressively in the media as any comparable privately owned recreational facility.

Edge #4: Marketing

A comprehensive advertising and group sales plan is essential to retail prior customers and encourage visits by new customers. Water World has recently substantially increased its groups sales staff. Group accounts are especially important due to the changeable nature of Colorado weather. A good scheduled group base on less than optimum weather days is absolutely necessary. Media advertising is also of extreme importance. Customer surveys must be utilized to identify potential customers and determine the best means to attract them to the park. Based on this information, radio, television and print media advertising must be prepared, purchased and scheduled. In addition, promotions, sponsorships and effective public relations must be set up and used to supplement and enhance paid advertising.

Edge #5: Mother Nature

But wait! The staff has been trained and hired, the advertising and group sales plans are running smoothly. Time to sit back and enjoy, right? Not exactly. Even the best prepared and managed water park has one thing it cannot control-the weather! Just as cloudless skies and temperatures in the 90's will bring the people in, cloudy skies and rain will keep the park empty. A water park, perhaps more than any other summer recreational attraction, ultimately depends on good weather for its continued success. With a season of only three months, every day closed due to weather is a major loss. Bad weather on weekends and holidays can be especially damaging and result in revenue losses of more than $60,000 per day. The best that can be done is to maximize the good weather day attendance and emphasize large groups that will attend when weather is not the best.

Edge #6: New Technologies and Expansion

A water park, like any other recreational attraction, cannot afford to become stale or predictable. In order to compete with other new and fashionable attractions, it is necessary to add new attractions or remodel old areas at least every two years. Water World undertook both a major renovation and a new attraction this year. Calypso Cove, formerly Surfer's Cove, was substantially remodeled with a Caribbean fishing village theme of bright colors, small fishing boats, additional shade structures and swaying palm trees. The Cove's focal point is a large interactive water structure--a cross between a jungle gym and tree house set in a large pool of water. Levers, valves, lanyards and triggers--all operated by park guests--control the flow of water throughout and around the structure and provide more than 33 water play experiences.

Voyage to the Center of the Earth combines the cutting edge technology of water parks and amusement parks "dark rides" to create a fantastic new adventure for our guests. This 1,600foot totally enclosed family inner-tube fide takes brave explorers on a journey to the newly discovered world below in search of the lost Professor Nigel Woosley. Our adventurers experience the thrilling white-water plunge down the swirling double vortex past the bubbling hot springs. As they travel deeper into the underground world, the adventurers confront a giant sea monster and pass through the prehistoric swamp inhabited by dinosaurs and flying reptiles before having an up close and personal encounter with the king of the underworld, the ferocious Tyrannosaurus Rex. The dinosaurs are all animated and special lighting and sound effects have earned Voyage recognition in USA Today as one of the top five new amusement park attractions in the United States. This distinction is well supported by our guests who wait up to an hour and a half to make the voyage.

Edge #7: Public/Private Competition

Finally, the staff is trained and ready, the park has never looked better, the advertising is rolling, group sales reservations are pouting in and the long-term forecast is for sunny, hot weather for the next three months. Not a care in the world, right? Wrong! The owner of the small family entertainment center located across town has complained to his legislator that your new park is putting him out of business. The legislator introduces a bill in the state legislature to prohibit public ownership of water parks without approval of the county government. Down to the state house you must go, pleading the case for why your water park makes sense, is a creative answer to flat budgets, is overwhelmingly supported by your residents and is an outstanding place for the entire family to recreate together. Sound far-fetched?

That is exactly what has happened in Colorado. Almost every year a bill is introduced to limit the ability of any governmental entity to provide any recreational facility or program that could possibly be offered by the private sector. Any park and recreation district in Colorado must now obtain the approval of the local county commissioners before it can construct, own or operate "any bowling alley, roller skating rink, batting cage, golf course on which the game is played on an artificial surface, or an amusement park which has water recreation as its central theme," unless a rather stringent set of requirements is found to exist by the county commissioners (C.R.S. 32-1-1005(2)(a)).

Edge #8: Satisfaction

Do you still think a water park is the answer to your financial problems? Probably not. Would Hyland Hills do it all over again? Absolutely! Beyond the thousand and one headaches of owning and operating Water World, beyond the risks involved every year with operating a water park in Colorado's unpredictable weather, is the sheer satisfaction of watching our guests enjoy a world-class recreational facility dedicated to safe, affordable family entertainment and providing jobs for more than 700 young men and women who learn responsibility, public service and pride in serf and one's work.

Is a water park the solution for you? If you are ready to work harder and longer than you have ever done for four months out of the year; if you are ready to risk a substantial amount of money on the whims of Mother Nature; if you are ready to bear the criticism and open hostility of those who think government has no business being in the water park business; if you are ready to invest millions in a facility that is only open for three months out of the year; if you are ready and willing to upgrade the park on a regular basis; if you are ready to become employer and parent for hundreds of teenagers every summer; and, if you are ready for some of the most exciting and rewarding times of your life, then a water park might just be for you.