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<br /> <br /> <br />Expenditure – Revenue Comparison <br /> <br />Category Existing Facilities21 New Facility Phase 2 Phase 3 <br />Expenditures $1,203,340 $1,271,622 $1,443,051 $1,691,452 <br />Revenue $823,762 $972,530 $1,236,610 $1,545,030 <br />Difference ($379,578) ($299,092) ($206,441) ($146,422) <br />Recovery percentage 68% 77% 86% 91% <br /> <br /> <br /> <br />This operational pro-forma was completed based on the best information available and a basic <br />understanding of the project. However, there is no guarantee that the expense and revenue <br />projections outlined above will be met as there are many variables that affect such estimates that <br />either cannot be accurately measured or are not consistent in their influence on the budgetary <br />process. <br /> <br /> <br />Future years: Expenditures – Revenue Comparison: Operation expenditures are expected to <br />increase by approximately 4% a year through the first 3 to 5 years of operation. Revenue growth <br />is expected to increase by 5% to 10% a year through the first three years and then level off with <br />only a slight growth (3% or less) the next two years. Expenses for the first year of operation <br />should be slightly lower than projected with the facility being under warranty and new. Revenue <br />growth in the first three years is attributed to increased market penetration and in the remaining <br />years to continued population growth. In most recreation facilities the first three years show <br />tremendous growth from increasing the market share of patrons who use such facilities, but at the <br />end of this time period revenue growth begins to flatten out. It is not uncommon to see the <br />amount of tax support to balance the community center budget increase as the facility ages. <br /> <br /> <br /> <br /> <br /> <br />21 Includes Ice Arena, Activity Center and Lion’s Park facilities <br />APPENDIX C