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Page 50 of 73 <br /> <br />Following is a summary of the accrued operating Deficits for each option through the first five <br />years of Rec Center operation. <br /> <br />Accrued Operating Deficits through Year Five <br />(With City Administration Allocation but without Capital Reserve Fund Allocation) <br /> <br />Year City Managed Accrued <br />Deficit <br />Hybrid Management <br />Accrued Deficit Variance <br />Year Zero $515,905 $437,255 $78,650 <br />Year One $1,035,587 $709,945 $325,642 <br />Year Two $1,164,034 $804,868 $359,166 <br />Year Three $1,272,687 $892,465 $380,221 <br />Year Four $1,353,860 $969,878 $383,982 <br />Year Five $1,436,084 $1,055,473 $380,612 <br /> <br />Bottom Line <br />After Year Three, the net deficit variance between the two Management Options level off and are <br />roughly equivalent. Although the projections show this variance leveling off, we feel that the <br />potential net operating revenue has a higher upside in the Hybrid Management Model based on <br />continuing updating of programs and enhanced program opportunities. <br /> <br />These P & L Summaries do not include the potential additional operating revenue and expenses for <br />future expansions. These are dealt with at a very high level in the Future Long Term Recreation <br />Center Development and Expansion section of this Report. <br /> <br />The detailed P & L Summary with all revenue and expense categories for both Management <br />options is included in the next nine pages. These P & L Summaries also include the annual <br />growth in both Revenue and Expenses. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />