The Villages Golf and Country Club 2009/2010 Operating and Reserve Budget Presentation FINAL DRAFT – APRIL 22, 2009

2 The Remaining Schedule

Club Operating Draft Budget - FY 09/10

4  Budget workshop with Board of Directors  Departmental meetings  Line-by-line review of each budget  There was a heightened awareness this year to be as frugal as we could without affecting service levels to obvious extent  Three budget review meetings were conducted with Finance Committee and the Committee approves of the budget with the exception of the golf operation element Process To Date

Fiscal Year Draft Club Budget Summary  As it stands today, the operating assessment can remain flat for the next fiscal year – assuming fee adjustments are made to the golf operation  The history…

6 The Big Picture Association and the Club

Fiscal Year Draft Operating Budget Summary  Decrease in total revenue of $93,600 Pro Shop retail ($18,000) Food and Beverage ($81,500 – 4.7 percent) Advertising ($23,500 – 9.3 percent) – Villager and Directory  Total decrease to expenses of $40,200 Employee benefits up $179,800  Total cost of wages and benefits equals $123,800 Cost of water increased $90,500

Fiscal Year Draft Operating Budget Summary  Insurance is flat  Repair and Maintenance increased $28,300 (7.1 percent increase)  Landscape expenses decreased $240,100 (31.9 percent) – this includes savings from the recent contract renewal and reduced landscape expenses on the golf course  General utilities are down $56,400 – mainly electricity (UCCC-driven)  Cable television expenses increased $21,700 per contract – less than the maximum amount permitted  Outside services increased $47,100 (8.5 percent) Villager printing $20,000, aeration on course $10,000 and payroll processing $10,000

9 The Main Expense Categories

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11 Landscape Contract Renewal

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14 Club Operating Expense Components - FY 09/10

15 Payroll Related Expenses  Overall increase of $123,800 or 2 percent  Head count reduced by 3 FTEs Wages and taxes reduced by $55,000  Only two departments increased head count.5 FTE in GM office (delivery of monthly statements).5 FTE in Community Activities (AV set ups)  Reductions in overtime pay (F&B and Golf Maintenance)  2.75 percent increase to employee salaries – except F&B – no increases CPI – 3.3 percent Fed COLA 5.8 percent

16 Payroll Related Expenses - Benefits  Increase cost to benefit package of $178,800 – a 20 percent increase Benefit plan renewal equated to roughly 11 percent Dental was budgeted short last year – $35,000 Participant plan mix changed – single to family  Average cost per employee increased from $7,400 to $9,100 Plan was adjusted – deductibles and co-pays were increased – passing $300 to $400 in additional cost back to employee in form of monthly program contribution

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19 Food and Beverage  Loss of revenue - $81,000 (4.7 percent) Lower diner count expected Will not jump out to a big start this summer as we did last summer  Total expenses increased by $39,100 (1.7 percent) Wages and Benefits  Salary flat other than F&B Director incentive that was never budgeted  Benefits increased by $62,800 (25 percent)  Overtime cut in half  No wage adjustments – frozen

20 The Bottom Line – not better…worse

21 Golf Program Revenue Base

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23 Golf Rates and Fees

24 Emergency Preparedness Committee  $10,000 in this year’s budget  EPC requested $22,000  Resubmitted at $15,000, which was approved

26 Things to Consider  Shortening the swimming season at Cribari and Foothill by weeks saves roughly $5,000 in utility and pool-related expenses  Increasing the assessment late fee from $5 to $10 (which we can) could generate an additional $10,000  Going “electronic only” with the Villager could save $125,000  Billable charges to Association could be increased to reflect staff’s time  Turning off irrigation to first 175 feet of fairway from the tee could save $35,000  Cancelling home delivery of Villager could save $25,000 – news-boxes would be placed around the community  Not using the tent for the July 4 celebration could save $5,000  Restaurant and golf operation could shut down for a day (Mondays for golf and Tuesdays for the restaurant) could save $  Cellular providers are re-interested – could generate $20-50,000 per year

Capital Budget Proposal

28 Process To Date  Budget workshop with Board of Directors  Departmental meetings  Line-by-line review of each schedule

29 Key Points Relating the Reserve Fund  Total spending plan for 2009/2010 is $1,586,600 Golf portion of spending plan is $268,500  2009/2010 ending fund balance is $977,900 Club portion of spending plan is $1,318,100  2009/2010 ending fund balance is $870,100

30 Key Points Relating the Reserve Fund  Total funding (assessment) for consolidated plan equates to $1,289,100  Increase in funding plan from last year’s projection is roughly $140,000 Increase in asphalt and roadway maintenance plan accounts for a $110,000 increase over the $235,000 projected last year – now $343,000

32 Key Points Relating the Reserve Fund  $27,000 ADA improvements to Cribari Center  $126,700 for seven new vehicles - four for maintenance, two for janitorial and one for public safety  $82,000 in improvements to corporation yard building  $60,500 to replace roof on professional buildings  $65,000 for fitness equipment  $50,000 for landscape improvements

33 Key Points Relating the Reserve Fund  $42,000 for outdoor and pool area furniture  $65,000 for chairs for Cribari  $60,000 for Montgomery Center renovations  $60,000 for driving range irrigation replacement  $60,000 for driving range replacement netting  $123,000 in golf course replacement equipment

34 The Reserve Fund in Detail

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38 The Facility Fund in Detail Note: The following projections do not assume that the Capital Project Improvement Plan will be approved. The recommendation: give $5 of the $15 back to offset the burden

39 Facility Fund

40 Facility Fund

41 Facility Fund Current and Prospective Projects

42 How does all this affect the monthly assessment?

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44 The Big Picture Association and the Club