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b BAL AR *KING <br /> l� & ASSOCIATES LTD <br /> Recreation Facility Planning and Operation Consultants <br /> Grand Total $1,036,305 $1,211,820 $ 916,825 <br /> Expenditure—Revenue Comparison <br /> Category Community Multi-purpose Ice Arena <br /> Center <br /> Expenditures $1,286,785 $1,039,296 $841,283 <br /> Revenue $1,036,305 $1,211,820 $916,825 <br /> Difference ($250,480) $172,524 $75,542 <br /> Recovery percentage 81% 116% 109% <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 /> Future years: Expenditures — Revenue Comparison: Operation expenditures are expected to <br /> increase by approximately 3% a year through the first 3 to 5 years of operation. Revenue growth <br /> is expected to increase by 4% to 8% 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. <br /> 8 1 P a g e <br />