|
•
<br /> analysis of revenue and expense data and related factors from similar courses in the Twin
<br /> Cities Metropolitan Area and from sources such as the National Golf Foundation. Selection of
<br /> the final assumptions used in the pro-forma economic analysis was based upon these data
<br /> coupled with the professional experience of the EGCS principals.
<br /> Pro Forma Summary
<br /> Five-Year Pro Forma Summary of Revenues, Expenses and Net Returns 1995 - 1999
<br /> Revenue Items 1995 1996 1997 1998 1999
<br /> 9-Hole Executive Course:
<br /> Rounds per Year 12,750 22,000 25,$00 27,000 29,000
<br /> Greens Fee $8.00 $8.50 $9.00 $9.50 $10.00
<br /> Course Annual Revenue $ 102,000 $187,000 $225,000 . $256,500 $290,000
<br /> Power Car Rentals:
<br /> Annual Revenues $ 1,500 $ 2,380 $ 2,610 $ 2,850 $ 3,100
<br /> Driving Range:
<br /> Annual Revenues 61,039 90,282 . 108,733 125,680 138,544
<br /> Club and Pull Cart Rentals:
<br /> Annual Revenues 6,094 8,480 8,820 9,170 9,616
<br /> Golf Merchandise:
<br /> Annual Revenues 4,219 6,150 6,525 .6,919 7,305
<br /> Food Concessions:
<br /> Annual Revenues 34,453 28,251 48,263 49,463 50,700
<br /> Total Annual Revenues $ 209,305 . $322,543 $399,951 $450,582. $499,265
<br /> Expense Items
<br /> Course and Grounds
<br /> Maintenance:
<br /> Total C & G Expense $ 86,330 $ 99,556 $102,893 $106,345 $109,915
<br /> Course Operations: . .
<br /> Total Course Expense 71,853 82,214 84;791 87,453 90,209
<br /> Driving Range:
<br /> Driving Range Expense 51,000 30,750 32,023 36,068 37,493
<br /> Total All Expenses $ 209.183 $212,520 . $219;707 $229,866 $237,617
<br /> Net Income Summary
<br /> Total Gross Revenues $ 209,305 $322,543 $399,951 $450,582 $499,265
<br /> Net Debt Service 169,583 169,583 169,583 169,583 204,583
<br /> Income After Debt Service 39,722 152,960 230,368 280,999 294,682
<br /> Total Gross Expenses 209,183 212,520 219,707 229,866 237,617
<br /> Net Income(a) (169,461)(b) (59,560)(b) 10,661 51,133 57,065
<br /> (a) Average net income per year over a 20-year period equals$97,950.
<br /> (b) The City will appropriate funds to cover the anticipated shortfall.
<br /> - 7 -
<br />
|