8.1. SR 07-18-2016 - Laserfiche WebLink

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MARKET ANALYSIS City of Elk River, MN Feasibility Study * Page 59 Section V – Operations Analysis Operations Analysis The operations analysis represents a conservative approach to estimating expenses and revenues and was completed based on the best information available and a basic understanding of the aquatic project. Fees and charges utilized for this study represent the current fee structure and market value and are subject to review, change, and approval by the City of Elk River. There is no guarantee that the expense and revenue projections outlined in the operations analysis will be met as there are many variables that affect such estimates that either cannot be accurately measured or are subject to change during the actual budgetary process. The revenue and expense projections for 2017 provide an allowance for future operating costs and fees. Expenditures Expenditures have been formulated on the costs that were designated by the consultant to be included in the operating budget for the facility. The figures are based on the size of the aquatic center, the specific components of the facility, and the hours of operation. All expenses were calculated to the high side and the actual cost may be less based on the final design, operational philosophy, and programming considerations adopted by staff. Revenues The revenue projections were formulated from information on the specifics of the project and the demographics of the service area as well as comparing them to national statistics, other similar facilities and the competition for recreation services in the area. Actual figures will vary based on the size and makeup of the components selected during final design, market stratification, philosophy of operation, fees and charges policy, and priority of use. All revenues were calculated conservatively as a result. APPENDIX B