Agenda Packets - 1998/04/06 - Laserfiche WebLink

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• • 11) MEMO To: Mr. Chuck Whiting From: John D. Hammerschmidt Subject: Revised Budget and 15 Year forecast Date: April 3, 1998 I have submitted a 15 year budget forecast that gives us a very clear picture of the • Bridges Golf Course finances. We now have a 2 'h year history of revenues and expenses that allow us to have a fair amount of confidence in our forecast.Bruce has been invaluable in helping me arrive at these projections. The assumptions I am making in order for these numbers to have relevance are on pages B and C. Several assumptions that are important to note are: 1) We maintain an average of 45,000 rounds of per year 2) The practice range has an increase of 55% over the next three years(lights and advertising) 3) Any further expenses involving lawsuit issues are either recovered by the lawsuit or funded thru a separate loan. So far all expenses have been paid • thru operating revenues. 4)Maintain an average growth of 4%in revenues and 3% in expenses. Important details of this budget forecast are: 1) Cash End of Year must maintain a$300,000 reserve for the bond. That money is not available until the year 2013. 2)Net Income in 1995, 1996, 1997, has been skewed by expenses incurred by lawsuit in added labor and attorney fees. 3)Page D shows that a 5%drop in revenues will affect Cash End of Year by over$550,000. A) This shows how important it is to both stay better than our current competition and to be concerned about future competition. B)It also makes it evident that we need to explore all opportunities for additional revenues that will positive cash flow. *Lighting the entire golf course * Miniature Golf * Batting Cages *Food and beverage service * Range expansion * Year round lesson facility * 3 hole loop for youth golf . 4)By the year 2014 cash flow will increase by$400,000 per year by having the bond paid off.