New London – Despite a profitable June bolstered by agreeable weather and bumper-to-bumper attendance, Ocean Beach Park still posted an overall $116,000 loss for the fiscal season that ended June 30, adding to the city’s growing subsidy tab now exceeding $600,000.

The park, owned by the city but operated by the Sodexo Live! firm for the past 25 years under different names, runs on a three-month fiscal calendar that includes the months of July, August and the following June.

For that period, the park, despite tallying $2.93 million in gross sales and service charges, ended with a $116,000 net loss after $2.72 million in operating expenses and $333,000 in management fees were subtracted.

The city now owes Sodexo’s $618,500, part of a debit accumulated over several years marked by uncooperative weather that kept customers away.

The city is responsible for covering those losses as part of Sodexo’s contractual management fee that compensates the company 10% of gross revenue from the park and a portion of net profits.

The city paid $325,000 last year to cover 2022-23 park losses.

Park Manager David Sugrue, who could not be reached for comment, previously described the beach park’s success as heavily dependent on good weather.

“If it’s a sunny Sunday in mid-June to mid-August, we can do $125,000 to $150,000 in business,” Sugrue told the City Council in May. “If it rains on that same day, we might do $150 in business.”

In June, which included a stretch of warm and sunny weekends, the park recorded net profits of $263,000, compared to the $25,800 loss reported in June 2023.

In a profitable year, left-over park profits are funneled into city coffers. The park has had stretches of profitability, returning roughly $765,000 to the city for years spanning 2012-2016.

The City Council this year approved new entry rate increases of up to $10.

Councilors also in May approved a 28-month contract extension with Sodexo, the shortest since the original 1999 contract was signed.

City officials, including Mayor Michael Passero said they plan to use the next two years to craft and advertise a new request for proposal for possible new park management operators. Sodexo will have the opportunity to vie for the new contract.

The extension agreement, which expires on Sept. 23, 2026, also came with several new conditions, including new financial reporting requirements and capital improvement obligations.

Finance Director David McBride on Thursday said he and Passero plan to meet with Sugrue every month to “dig into” the park’s monthly financials. He predicted those meetings would include frank and specific back-and-forth conversations.

“That will include what kind of events were booked and venues ― weddings, shows and other things ― were booked and what they cost and how well they did revenue-wise,” McBride said. “Maybe there’s markets not being looked at. At the end of the day, the city is on the hook for any losses.”

j.penney@theday.com