10 Year Financial Projection

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					          HOA #1
10 Year Financial Projection
        2010 - 2019

              Prepared by:

             John Pavlak
           HOA #1 Treasurer

                For the:
 SaddleBrooke HOA #1 Board of Directors
          Board Work Session
             June 23, 2009
                              10-Year Financial Projection

        Outline of Presentation
        • Goals

        • Key Conclusions

        • Base Case
           – Results
           – Methodology
           – Historical Expense Increases
           – Assumptions
        • Review Key Conclusions

        • Next Steps

        • Appendix- Base Case Detailed Spreadsheets


                                                             2
6/30/2009 11:51 AM
                                      10-Year Financial Projection
     Goals:
     • Develop a 10-year financial projection model for the Association
        – One that could be easily updated during the year and at budget time
        – And can allow us to do “what if” analyses as needed
     • Determine whether we can provide adequate 10-year funding for:
        – Operating expenses
        – Replacement Reserve Fund (RFF) expenses
        – Capital Improvement Fund (CIF) expenses
                     • with only Community Service Fees (CSF) and Board Authorized
                       Assessments (BAA) [CCR § 6.6]
                     • That is, without any homeowner-voted Special Assessments
     • Project revenues and expenses based on:
        – External inflation forecasts & corresponding revenue interest rates
        – Historical Association expense data
        – Conservative, realistic assumptions
     • Incorporate Replacement Reserve Fund (RRF) Schedule into the model
     • Provide flexibility, such as variables which can be adjusted year by year
        – e.g., adjust inflation on a year-by-year basis

                                                                                     3
6/30/2009 11:51 AM
                                  10-Year Financial Projection
     Key Conclusions from Projection Model:
     •    We should have sufficient fee income from CSF and BAA to fund:
          – Operating expenses
          – Replacement of capital assets (RRF)
          – Periodic major capital improvements (e.g., Fitness Center expansion)
          – And end up with RRF balance in 10 years of ~ $2,700,000 -$3,000,000
              • That is, inflation-adjusted value of this year’s ~$2,000,000
              • Lowest Replacement Reserve Fund balance occurs in 2011

     •    No need for homeowner-voted special assessments unless we experience
          prolonged significant inflation (e.g. above 4% - 5%)

     •    Should be able to keep year-to-year increases in homeowner fees (combined
          CSF/BAA) to about last year’s increase of $136 or less
          – If we can keep operating expenses close to, or below, the model

     •    Best opportunity for reducing fee increases & providing better financial
          cushion is to reduce and control operating expenses
                                                                                      4
6/30/2009 11:51 AM
                                           10-Year Financial Projection
    $3,500,000
                        RRF Balance-End of Year                                                  $270
                        RRF Balance - 2009 Dollars
    $3,000,000
                        Annual CSF/BAA Increase                                                  $250
                           (Right-hand scale)                                                         A
 R
   $2,500,000                                                                                    $230 n
 R
                                                                                                      n
 F
                                                                                                      u I
                                                                                                 $210 a
   $2,000,000                                                                                           n
 B
                                                                                                      l c
 a
                                                                                                 $190   r
 l
   $1,500,000                                                                                         C e
 a
                                                                                                      S a
 n                                                                                               $170
                                                                                                      F s
 c
   $1,000,000                                                                                         & e
 e
                                                                                                 $150 B
                                                                                                      A
      $500,000                                                                                        A
                                                                                                 $130


               $0                                                                                $110
                 2009   2010   2011     2012    2013   2014   2015   2016   2017   2018   2019

                                                                                                            5
6/30/2009 11:52 AM
                                          10-Year Financial Projection
           Model Set Up:
           •         Expenses calculated on a detailed department-by-department basis,
                     with the following subcategories:
                     –   Wages
                     –   Payroll taxes
                     –   Benefits
                     –   Non-Labor Expenses

           •         Some assumptions were built into model as “fixed”
                     –   e.g., payroll tax %, disclosure/transfer fees

           •         All other assumptions can be independently set year-by-year
                     –   e.g., inflation of 1.9% in 2010, 2.3% in 2010, increase in golf course
                         revenue, improvement in F&B margins, change in benefits costs, etc.

           •         After setting all other assumptions, CSF & BAA increases were
                     adjusted to achieve the desired RRF funding & the RRF balance at
                     the end of 2019
                     –   e.g., keep RRF balance above $2,000,000 in today’s dollars
                                                                                                  6
6/30/2009 11:52 AM
                                      10-Year Financial Projection

                                       Association Expenses
                                  Historical Year-to-Year Increases

                                                                                     Average
                                     ---------- ACTUAL ----------           Budget    Annual
                                     2004 2005 2006 2007 2008                2009    Increase

  Wages                               7.9% -3.3%     8.0% 10.5% -0.3%        3.2%       4.3%

  Benefits                           16.7%   1.0% 13.5% 15.0% -1.2%         22.2%      11.2%

  All Non-Labor Expense              12.5% -5.4% 19.5%       7.2%    9.8%    4.7%       8.0%
  (Excluding Road Repairs)

  CPI Change (Dec-Dec) *              3.2%   2.9%    2.3%    3.7% -0.5%      0.0%       2.3%

   * CPI = Consumer Price Index




                                                                                                7
6/30/2009 11:52 AM
                                   10-Year Financial Projection
  Base Case Assumptions:
  Revenue:
   • HRF – 70 home resales per year
   • Interest earned on 1/3 of operating funds, at forecasted 3 mo. T-bill rates
   • No change in Transfer/Disclosure Fees
   • Other income – Increases at rate of inflation
   • CSF & BAA adjusted to achieve desired RRF funding (by year & in 2019)

  Expenses:
   • Inflation -- 1.9% in 2010, rising to 2.6% in 2014-2019
          – Source: Professional Forecaster’s Survey from Philadelphia Federal Reserve
     • Wage Increases -- Inflation rate plus 0.5%
     • Benefit Cost Increases -- 10% per year
     • Non-Labor Expenses -- Inflation rate plus 2.0%
          – e.g., if inflation is 2.3%, expenses assumed to increase at 4.3% that year

                                                                                         8
6/30/2009 11:52 AM
                                10-Year Financial Projection


      Base Case Assumptions (continued):

      Golf:
      • 2009 Golf Course revenue -- $2,080,000 ($50,000 below budget)
      • 2009 Golf Shop revenue -- $284,000 (budget)
      • Both assumed to increase by 2% a year
      • Golf Shop Cost of Goods – 75% (2009 budget figure is 72%)


      F & B:
      • Sales:
          • 2009 sales of $1,500,000 (budget)
          • 2% sales increase per year

      • Cost of Sales –35% (same as 2009 budget)
      • Labor Cost – 62% of sales (2009 budget is 60.7%)


                                                                        9
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                                      10-Year Financial Projection

       Base Case Assumptions (continued):

       Replacement Reserve Fund (RRF):
       • Expenses based on:
          – All items listed on current Replacement Reserve Fund Schedule
          – In the year currently scheduled
                     • Actual timing may be sooner or later

       • Inflation Rate Revised to Rate Used in the Projection
          – i.e., 1.9% to 2.6% vs. the consistent 3.5% used in the
             Replacement Reserve Fund Schedule

       • Interest rate on RRF – Inflation rate plus 1.5%



                                                                            10
6/30/2009 11:52 AM
                                                      10-Year Financial Projection
      $3,000,000
                                                      Replacement Reserve Fund
                                                    2009-2028 Scheduled Spending
                                                      Current Replacement Cost
                                 Total
      $2,500,000
                                 Golf
                                 All Other
                                 Roads
      $2,000,000




      $1,500,000




      $1,000,000




        $500,000




              $0
                2009   2010   2011   2012   2013   2014   2015   2016   2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027   2028
                                                                                                                                                        11
6/30/2009 11:52 AM
                                    10-Year Financial Projection
       Base Case Assumptions (continued):
       Replacement Reserve Fund (RRF):
       • Expenses based on:
               – All items listed on current Replacement Reserve Fund Schedule
               – In the year currently scheduled
                   • Actual timing may be sooner or later
       • Inflation Rate Revised to Rate Used in the Projection
               – i.e., 1.9% to 2.6% vs. the consistent 3.5% used in the Replacement
                 Reserve Fund Schedule
       • Interest rate on RRF – Inflation plus 1.5%
       Capital Improvement Fund:
       • Fitness Center expansion in 2010 ($425,000)
               – Additional $100,000 in Fitness equipment in 2011
       • No other major capital improvement projects
       • Additional projects of $50,000/year in 2010 to $70,000/year by 2016
       Working Capital Contribution of $40,000 per year
                                                                                      12
6/30/2009 11:52 AM
                                           10-Year Financial Projection
    $3,500,000
                        RRF Balance-End of Year                                                  $270
                        RRF Balance - 2009 Dollars
    $3,000,000
                        Annual CSF/BAA Increase                                                  $250
                           (Right-hand scale)                                                         A
 R
   $2,500,000                                                                                    $230 n
 R
                                                                                                      n
 F
                                                                                                      u I
                                                                                                 $210 a
   $2,000,000                                                                                           n
 B
                                                                                                      l c
 a
                                                                                                 $190   r
 l
   $1,500,000                                                                                         C e
 a
                                                                                                      S a
 n                                                                                               $170
                                                                                                      F s
 c
   $1,000,000                                                                                         & e
 e
                                                                                                 $150 B
                                                                                                      A
      $500,000                                                                                        A
                                                                                                 $130


               $0                                                                                $110
                 2009   2010   2011     2012    2013   2014   2015   2016   2017   2018   2019

                                                                                                        13
6/30/2009 11:52 AM
                                  10-Year Financial Projection
     Key Conclusions from Projection Model:
     •    We should have sufficient fee income from CSF and BAA to fund:
          – Operating expenses
          – Replacement of capital assets (RRF)
          – Periodic major capital improvements (e.g., Fitness Center expansion)
          – And end up with RRF balance in 10 years of ~ $2,700,000 -$3,000,000
              • That is, inflation-adjusted value of this year’s $2,000,000
              • Lowest Replacement Reserve Fund balance occurs in 2011

     •    No need for homeowner-voted special assessments unless we experience
          prolonged significant inflation (e.g. above 4% - 5%)

     •    Should be able to keep year-to-year increases in homeowner fees (combined
          CSF/BAA) to about last year’s increase of $136 or less
          – If we can keep operating expenses close to, or below, the model

     •    Best opportunity for reducing fee increases & providing better financial
          cushion is to reduce and control operating expenses
                                                                                      14
6/30/2009 11:52 AM
                              10-Year Financial Projection


       Next Steps:
       • Obtain feedback re projection model & base case

       • We can evaluate any alternate cases the Board wants

       • Projection can be updated in the fall w/each version of 2010 budget

       • A copy of the entire Base Case can be put on the web site

       • The next Communicator will include an article describing the
         projection and its key conclusions

       • A locked version of the Excel Workbook can be put on the web so any
         interested resident can run their own hypothetical cases by adjusting
         key variables

                                                                                 15
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                       10-Year Financial Projection




                     Appendix

                                                      16
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                                            10-Year Financial Projection




 The Excel Workbook for the 10 Year Projection consists of the following worksheets:

 Page #

     1       Cover Page

     2       Key Assumptions and Summary of Results (one page)

     3       Other Assumptions (two pages)

     5       A Detailed Summary (three pages)

     8       A Departmental Expense Summary with labor and non-labor expenses for each department (three pages)

     11      A Departmental Expense Worksheet with wage, payroll tax, benefit, and non-labor expense detail for each
                department ( seven pages)




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                                                                                  10-Year Financial Projection
                                                                                               Key Assumptions and Results
                                                                                                              Key Assumptions
                                                                  2009             2010              2011             2012              2013             2014             2015              2016             2017             2018              2019
    1   General Inflation (CPI)                          0.2%         1.9%          2.3%                              2.5%              2.5%             2.6%             2.6%              2.6%             2.6%             2.6%              2.6%
        Cong. Budget Office (CBO) Estimate (3/09)       -0.7%          1.4%          1.2%                             1.2%              1.2%             1.2%             1.9%              1.9%             1.9%             1.9%              1.9%
        Phily Fed Prof. Forecaster's Survey (2/09)       0.2%          1.9%          2.3%                             2.5%              2.5%             2.6%             2.6%              2.6%             2.6%             2.6%
        Used to project Non-Labor Operating Expenses and as base for wage increases.
    2   Community Service Fee (CSF)                             $1,699           $1,834           $1,980            $2,138           $2,309            $2,493           $2,692           $2,907            $3,099           $3,234           $3,369
           Maximum CSF Increase                                 $1,699           $1,834           $1,980            $2,138           $2,309            $2,493           $2,692           $2,907            $3,139           $3,346           $3,492
    3   Board Authorized Assessment (BAA)               $        320               $320              $309             $286              $250             $201             $137               $57               $0               $0                $0
           Maximum BAA                                        $320.75              $321              $327             $334              $342             $350             $359              $368             $377             $386              $396
    4   Combined CSF & BAA                                      $2,019           $2,154           $2,289            $2,424           $2,559            $2,694           $2,829           $2,964            $3,099           $3,234           $3,369
           Amount of increase                                     $136             $135             $135              $135             $135              $135             $135             $135              $135             $135             $135
    5   Wage increase                                                              0.7%              2.4%             2.8%              3.0%             3.0%             3.1%              3.1%             3.1%             3.1%              3.1%
         For 2010+, previous year's CPI Increase plus        0.5%
    6   Increase in Benefits Cost                                                 10.0%            10.0%             10.0%            10.0%            10.0%             10.0%            10.0%            10.0%             10.0%            10.0%
    7   Non-Labor Expenses Cost Increase Above inflation              =            2.0%
    8   Cap Imp. Fund Contribution                           260,300           260,000          150,000            50,000           50,000            60,000           60,000           70,000            70,000           70,000           70,000
           (Contribution based on keeping fund slightly in the black.)


                                                                                                            Summary of Results
                                                             Adjusted
                                                              Budget
                                                              -----------------------------------------------------------------------------------------------------------Projected-------------------------------------------------------------------------------
                                                                  2009             2010              2011              2012              2013              2014            2015           2016              2017              2018              2019
        Total General Revenue                               4,334,200       4,661,500         4,968,100        5,285,900        5,580,800         5,877,000        6,174,100        6,486,800         6,784,100        7,077,700        7,371,100
        General HOA Net                                     1,684,300       1,733,900         1,927,400        2,118,800        2,278,300         2,430,700        2,574,700        2,726,500         2,853,900        2,968,600        3,072,900
        Golf Net                                                9,500          (11,300)          (54,700)       (107,900)         (167,100)        (232,000)        (303,100)         (379,600)        (461,800)        (550,500)         (645,800)
        F & B Net                                           (112,200)         (137,800)        (144,800)        (152,400)         (160,500)        (169,100)        (178,200)         (187,800)        (197,700)        (208,100)         (219,000)
        Operating Net                                       1,581,600       1,584,800         1,727,900        1,858,500        1,950,700         2,029,600        2,093,400        2,159,100         2,194,400        2,210,000        2,208,100
        Working Capital Contribution                           92,600           40,000            40,000           40,000           40,000            40,000           40,000           40,000            40,000           40,000           40,000
        Replacement Reserve Fund
           Contribution                                     1,228,700       1,284,800         1,537,900        1,768,500        1,860,700         1,929,600        1,993,400        2,049,100         2,084,400        2,100,000        2,098,100

           Spending                                         (695,500) (1,471,100) (1,933,700) (1,021,300) (1,545,500) (1,520,700) (3,059,200) (1,256,300) (2,821,800) (1,273,100) (2,744,300)

           Ending Balance                                   1,789,700       1,661,100         1,320,900        2,135,900        2,542,800         3,064,300        2,102,300        2,997,500         2,367,900        3,308,800        2,785,000

        Capital Improvement Fund
           Ending Balance                                    242,600            32,200            33,400           34,700           25,900            27,000           28,100           29,300            30,500           31,800           33,100

                                                                                                                                                                                                                                                               18
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                                            10-Year Financial Projection




 The Excel Workbook for the 10 Year Projection consists of the following worksheets:

 Page #

     1       Cover Page

     2       Key Assumptions and Summary of Results (one page)

     3       Other Assumptions (two pages)

     5       A Detailed Summary (three pages)

     8       A Departmental Expense Summary with labor and non-labor expenses for each department (three pages)

     11      A Departmental Expense Worksheet with wage, payroll tax, benefit, and non-labor expense detail for each
                department ( seven pages)




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                                                                                 10-Year Financial Projection
                                                                                                            Other Assumptions
                                                         (Adjusted)  -------------------------------------------------------------------------------Projected-----------------------------------------------------------------------------------
          REVENUE                                               2009          2010             2011              2012              2013             2014          2015              2016             2017              2018              2019
     1    Home Resales                                                55              70               70              70               70              70               70               70              70               70               70

     2    Assumed that the numbr of transfer fees each year is 10% greater than the number of Home Resale Fees (HRF) due to sales to existing homeowners who do not need to pay HRF,
          The 10% figure is based on historical date of 10% to 20% more transfer fees than HRFs.

     3    Transfer/Disclosure fee is assumed to remain constant

     4    Other Income is assumed to increase at rate of inflation.

          GENERAL EXPENSES
     5        Payroll Taxes are separately calculated for each department based on historical tax rates.

     6        Federal and State Income Taxes are ignored.

     7        2009 Expense Estimates: For purposes of the June 2009 projection, an under budget expense estimate is built into the "Expenses All Non Revenue Dept"
                  line item for 2009 on the Detailed Summary page to adjust for expected under budget expenses. That adjustment is =        $ 85,000 below budget.

              Any department by department adjustment in operating expenses should be made on Departmental Expense Worksheet tab.

          GOLF
     8       Estimated 2009 Course Revenue =               2,080,000       (Budget is $2,130,700)

     9        Golf Course Revenue increase                        2.0%             2.0%             2.0%            2.0%             2.0%            2.0%             2.0%             2.0%            2.0%             2.0%             2.0%

     10       Estimated 2009 Golf Shop Sales =                284,000

     11       Golf Shop Sales Increase                            2.0%             2.0%             2.0%            2.0%             2.0%            2.0%             2.0%             2.0%            2.0%             2.0%             2.0%

     12     Golf Shop Cost of Goods                              75.0%           75.0%            75.0%            75.0%           75.0%            75.0%            75.0%           75.0%            75.0%            75.0%           75.0%
              (2009 budget % is 72%)
          F&B
     12     Estimated 2009 F&B Sales =                     1,500,000       (Budget is $1,500,000)

     14       F & B Sales Increase                                2.0%             2.0%             2.0%            2.0%             2.0%            2.0%             2.0%             2.0%            2.0%             2.0%             2.0%

     15       Cost of Sales %                                    35.0%           35.0%            35.0%            35.0%           35.0%            35.0%            35.0%           35.0%            35.0%            35.0%           35.0%

     16       Labor %                                            62.0%           62.0%            62.0%            62.0%           62.0%            62.0%            62.0%           62.0%            62.0%            62.0%           62.0%

     17   F & B projection based on using Cost of Sales % and Labor Cost %, plus inflationarly increase for all other costs.

     18   WORKING CAPITAL CONTRIBUTION                         92,600           40,000          40,000           40,000           40,000          40,000           40,000           40,000          40,000           40,000           40,000
                                                                                                                                                                                                                                                   20
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                                                                           10-Year Financial Projection


                                                                                                       Other Assumptions
                                                     (Adjusted)  -------------------------------------------------------------------------------Projected-----------------------------------------------------------------------------------
                                                            2009          2010             2011              2012              2013             2014          2015              2016             2017              2018              2019

           REPLACEMENT RESERVE FUND SPENDING
      19   Road Work from Fund-Present Value           (121,800)     (180,700) (327,800)   (139,900)   (343,800)   (342,900)   (663,300)   (153,100)   (226,700)   (267,000)    (56,300)
           Road Work from Fund with Inflation          (121,800)     (184,100) (341,700)   (149,500)   (376,500)   (385,300)   (764,700)   (181,100)   (275,100)   (332,500)    (71,900)
      20   Other Sch. Spending-Present Value           (573,700) (1,263,000) (1,527,200)   (815,900) (1,067,400) (1,010,400) (1,990,200)   (909,000) (2,098,400)   (755,400) (2,091,800)
           All Other Sch. Expenses with Inflation      (573,700) (1,287,000) (1,592,000)   (871,800) (1,169,000) (1,135,400) (2,294,500) (1,075,200) (2,546,700)   (940,600) (2,672,400)
                                  Total                (695,500) (1,471,100) (1,933,700) (1,021,300) (1,545,500) (1,520,700) (3,059,200) (1,256,300) (2,821,800) (1,273,100) (2,744,300)
               Above figures from Replacement Reserve Schedule of 5/29/09.

           Special Operating Expenses
      21      Street Repairs                                       (113,900)     (117,800)     (122,000)      (126,200)     (130,600)    (135,200)                           (140,000)        (144,800)       (149,900)        (155,200)
      22      Erosion Control                                            -       (141,900)       (58,300)      (78,100)           -       (56,400)                                -                -               -                -
              Above figures from Replacement Reserve Schedule 5/29/09. Figures include inflation at 3.5%, the rate used in the schedule.

           CAPITAL IMPROVEMENT FUND SPENDING
      23      Fitness Center                            (25,000)    (425,000)    (100,000)                        -                -               -                -                -               -                -               -
      24      All Other Capital Imp. Expenses           (64,300)     (50,000)     (50,000)                  (50,000)         (60,000)        (60,000)         (60,000)         (70,000)        (70,000)         (70,000)        (70,000)
                                                        (89,300)    (475,000)    (150,000)                  (50,000)         (60,000)        (60,000)         (60,000)         (70,000)        (70,000)         (70,000)        (70,000)
              Assumption after 2011 based on no major Capital Improvement Fund projects.

      25      Interest-Operating Fund                         1.0%             1.5%            2.5%             4.0%             4.0%            4.0%             4.0%             4.7%            4.7%             4.7%             4.7%
                                 CBO 3 Mo. T Bill             0.3%             0.9%            1.8%             4.0%             4.0%            4.0%             4.0%             4.7%            4.7%             4.7%             4.7%
              Operating Fund Interest is calculated on the basis that we earn the assumed interest rate on 1/3 of operating funds.

      26      Interest-Reserve Funds (Inf +1.5%)              1.5%             3.4%            3.8%             4.0%             4.0%            4.1%             4.1%             4.1%            4.1%             4.1%             4.1%
                                 Inflation                    0.2%             1.9%            2.3%             2.5%             2.5%            2.6%             2.6%             2.6%            2.6%             2.6%             2.6%
                                 CBO 10 Yr T Note             2.9%             3.4%            4.0%             5.1%             5.1%            5.1%             5.1%             5.6%            5.6%             5.6%             5.6%

              Interest on the Replacement Reserve Fund and the Capital Improvement Fund is calculated on the average of the beginning and end of year fund balance.




                                                                                                                                                                                                                                               21
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                                            10-Year Financial Projection




 The Excel Workbook for the 10 Year Projection consists of the following worksheets:

 Page #

     1       Cover Page

     2       Key Assumptions and Summary of Results (one page)

     3       Other Assumptions (two pages)

     5       A Detailed Summary (three pages)

     8       A Departmental Expense Summary with labor and non-labor expenses for each department (three pages)

     11      A Departmental Expense Worksheet with wage, payroll tax, benefit, and non-labor expense detail for each
                department ( seven pages)




                                                                                                                       22
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                                                                             10-Year Financial Projection
                                                                                                   Detailed Summary

     Key Assumptions                                                2009            2010            2011            2012            2013            2014            2015            2016            2017            2018             2019

     General inflation                                              0.2%            1.9%            2.3%            2.5%            2.5%            2.6%            2.6%            2.6%            2.6%            2.6%             2.6%
     Wage Increase-Previous Year's Inf. +           0.5%                            0.7%            2.4%            2.8%            3.0%            3.0%            3.1%            3.1%            3.1%            3.1%             3.1%
     Benefit Increase                                                             10.0%           10.0%            10.0%           10.0%           10.0%           10.0%           10.0%           10.0%           10.0%           10.0%
     Non-Labor Expenses-Inflation +                 2.0%                            3.9%            4.3%            4.5%            4.5%            4.6%            4.6%            4.6%            4.6%            4.6%             4.6%
     Number of Lots                                               2,060           2,060           2,060           2,060           2,060           2,060           2,060           2,060           2,060           2,060            2,060

                                                          Budget
     Homeowner Fees                               Actual (Adjusted) ---------------------------------------------------------------------------------Projected-----------------------------------------------------------------------------
                                                   2008       2009            2010             2011             2012             2013              2014         2015             2016             2017             2018              2019

       CSF per Unit                         $       1,574         1,699           1,834           1,980           2,138           2,309           2,493           2,692           2,907           3,099           3,234            3,369
       BAA per Unit                         $         309           320             320             309             286             250             201             137              57             -               -                -
                                            $       1,883 $       2,019 $         2,154 $         2,289 $         2,424 $         2,559 $         2,694 $         2,829 $         2,964 $         3,099 $         3,234 $          3,369
                                             $ Increase = $         136 $           135 $           135 $           135 $           135 $           135 $           135 $           135 $           135 $           135 $            135

       Home Resales                                    58              55              70              70              70              70              70              70              70              70              70               70

     Gen HOA Revenue

       Community Service Fee (CSF)             3,246,400     3,499,900       3,778,000       4,078,800       4,404,300       4,756,500       5,135,600       5,545,500       5,988,400       6,383,900       6,662,000        6,940,100
       BAA                                       636,540       659,200         659,200         636,500         589,200         515,000         414,100         282,200         117,400             -               -                -
       CSF & BAA Total                         3,882,940     4,159,100       4,437,200       4,715,300       4,993,500       5,271,500       5,549,700       5,827,700       6,105,800       6,383,900       6,662,000        6,940,100

       HRF                                       91,300         93,400         128,400         138,600         149,700         161,600         174,500         188,400         203,500         216,900         226,400          235,800
       Interest-Operations                       31,700         13,800          22,200          39,300          66,500          70,200          73,900          77,600          95,600          99,900         104,300          108,600
       Transfer/Disclosure Fees                  19,200         18,200          23,100          23,100          23,100          23,100          23,100          23,100          23,100          23,100          23,100           23,100
       Other Income                              37,300         49,700          50,600          51,800          53,100          54,400          55,800          57,300          58,800          60,300          61,900           63,500
       Total Other                              179,500        175,100         224,300         252,800         292,400         309,300         327,300         346,400         381,000         400,200         415,700          431,000

       Total General Revenue                   4,062,440     4,334,200       4,661,500       4,968,100       5,285,900       5,580,800       5,877,000       6,174,100       6,486,800       6,784,100       7,077,700        7,371,100

     Gen HOA Expenses
       Expenses All Non-Revenue Depts          2,516,000      2,649,900      2,813,700       2,922,900       3,045,100       3,176,300       3,315,700       3,464,200       3,620,300       3,785,400       3,959,200        4,143,000
       Street Repairs & Other Road O.E.              -              -          113,900         117,800         122,000         126,200         130,600         135,200         140,000         144,800         149,900          155,200
       Errosion Control                              -              -              -           141,900          58,300          78,100             -            56,400             -               -               -                -
       Sub-Total                               2,516,000     2,649,900       2,927,600       3,040,700       3,167,100       3,302,500       3,446,300       3,599,400       3,760,300       3,930,200       4,109,100        4,298,200

       General HOA Net                         1,546,440     1,684,300       1,733,900       1,927,400       2,118,800       2,278,300       2,430,700       2,574,700       2,726,500       2,853,900       2,968,600        3,072,900


                                                                                                                                                                                                                                              23
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                                                                          10-Year Financial Projection
                                                                                               Detailed Summary
                                                      Budget
                                              Actual (Adjusted) ---------------------------------------------------------------------------------Projected-----------------------------------------------------------------------------
                                               2008       2009            2010             2011             2012             2013              2014         2015             2016             2017             2018              2019
    Golf Course
      Projected Increase                                                        2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%             2.0%
      Total Green Fees                    1,982,600
      Other Course Revenue                   53,000
      Total Course Revenue                2,035,600      2,080,000       2,121,600       2,164,000       2,207,300       2,251,400       2,296,400       2,342,300       2,389,100       2,436,900       2,485,600        2,535,300
      All Course Expenses                 2,001,600      2,108,800       2,171,800       2,258,000       2,354,500       2,457,800       2,567,800       2,684,600       2,807,800       2,937,600       3,074,700        3,219,400

      Golf Course Net                        34,000         (28,800)        (50,200)        (94,000)      (147,200)       (206,400)       (271,400)       (342,300)       (418,700)       (500,700)       (589,100)        (684,100)

                             Golf Shop Sales Increase                         2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%             2.0%
    Golf Shop                Golf Shop Cost of Goods         75.0%           75.0%           75.0%           75.0%           75.0%           75.0%           75.0%           75.0%           75.0%           75.0%            75.0%
      Sales                                  269,100       284,000         289,700         295,500         301,400         307,400         313,500         319,800         326,200         332,700         339,400          346,200
      Cost of Goods                         200,200        213,000         217,300         221,600         226,100         230,600         235,100         239,900         244,700         249,500         254,600          259,700
      Other Expenses                         66,200         32,700          33,500          34,600          36,000          37,500          39,000          40,700          42,400          44,300          46,200           48,200
      Total Golf Shop Expenses              266,400        245,700         250,800         256,200         262,100         268,100         274,100         280,600         287,100         293,800         300,800          307,900

      Golf Shop Net                            2,700         38,300          38,900          39,300          39,300          39,300          39,400          39,200          39,100          38,900          38,600          38,300

      Golf Net                               36,700           9,500         (11,300)        (54,700)      (107,900)       (167,100)       (232,000)       (303,100)       (379,600)       (461,800)       (550,500)        (645,800)

                             F & B Sales Increase                               2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%            2.0%
                             Cost of Sales %                   35.0%           35.0%           35.0%           35.0%           35.0%           35.0%           35.0%           35.0%           35.0%           35.0%           35.0%
                             Labor %                           62.0%           62.0%           62.0%           62.0%           62.0%           62.0%           62.0%           62.0%           62.0%           62.0%           62.0%

    Food & Beverage
      Sales                               1,442,600      1,500,000       1,530,000       1,560,600       1,591,800       1,623,600       1,656,100       1,689,200       1,723,000       1,757,500       1,792,700        1,828,600

      Cost of Sales                         510,500        525,000         535,500         546,200         557,100         568,300         579,600         591,200         603,100         615,100         627,400          640,000
      Labor Costs                           917,000        910,400         948,600         967,600         986,900       1,006,600       1,026,800       1,047,300       1,068,300       1,089,700       1,111,500        1,133,700
      Other Expenses                        166,200        176,800         183,700         191,600         200,200         209,200         218,800         228,900         239,400         250,400         261,900          273,900
                                          1,593,700      1,612,200       1,667,800       1,705,400       1,744,200       1,784,100       1,825,200       1,867,400       1,910,800       1,955,200       2,000,800        2,047,600

      F & B Net                            (151,100)      (112,200)       (137,800)       (144,800)       (152,400)       (160,500)       (169,100)       (178,200)       (187,800)       (197,700)       (208,100)        (219,000)

    Net Before Fund Transfers             1,432,040      1,581,600       1,584,800       1,727,900       1,858,500       1,950,700       2,029,600       2,093,400       2,159,100       2,194,400       2,210,000        2,208,100

    WORKING CAPITAL CONTRIBUTION                             92,600          40,000          40,000          40,000          40,000          40,000          40,000          40,000          40,000          40,000          40,000



                                                                                                                                                                                                                                          24
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                                                        10-Year Financial Projection



                                                                            Detailed Summary
                                      Budget
                                     (Adjusted) ---------------------------------------------------------------------------------Projected-----------------------------------------------------------------------------
                                          2009            2010             2011             2012             2013              2014         2015             2016             2017             2018              2019
   CAPITAL IMPROVEMENT FUND
     Beginning Balance                  69,300          242,600          32,200           33,400          34,700           25,900          27,000          28,100           29,300          30,500           31,800
     Contribution                      260,300          260,000         150,000           50,000          50,000           60,000          60,000          70,000           70,000          70,000           70,000
     Spending
               Fitness Center Exp.     (25,000)        (425,000)       (100,000)             -               -                -               -               -                -               -                -
               Other Cap Imps          (64,300)         (50,000)        (50,000)         (50,000)        (60,000)         (60,000)        (60,000)        (70,000)         (70,000)        (70,000)         (70,000)
               Total                   (89,300)        (475,000)       (150,000)         (50,000)        (60,000)         (60,000)        (60,000)        (70,000)         (70,000)        (70,000)         (70,000)
     Interest                            2,300            4,600           1,200            1,300           1,200            1,100           1,100           1,200            1,200           1,300            1,300
     Ending Balance                    242,600           32,200          33,400           34,700          25,900           27,000          28,100          29,300           30,500          31,800           33,100

   REPLACEMENT RESERVE FUND
     Beginning Balance               1,234,000       1,789,700        1,661,100       1,320,900       2,135,900        2,542,800       3,064,300        2,102,300       2,997,500       2,367,900        3,308,800
     Contribution                    1,228,700       1,284,800        1,537,900       1,768,500       1,860,700        1,929,600       1,993,400        2,049,100       2,084,400       2,100,000        2,098,100
     Spending
                Road Work             (121,800) (184,100)     (341,700)   (149,500)   (376,500)   (385,300)   (764,700)   (181,100)   (275,100)   (332,500)    (71,900)
                Other Projects        (573,700) (1,287,000) (1,592,000)   (871,800) (1,169,000) (1,135,400) (2,294,500) (1,075,200) (2,546,700)   (940,600) (2,672,400)
                Total                 (695,500) (1,471,100) (1,933,700) (1,021,300) (1,545,500) (1,520,700) (3,059,200) (1,256,300) (2,821,800) (1,273,100) (2,744,300)
     Interest                           22,500      57,700      55,600      67,800      91,700     112,600     103,800     102,400     107,800     114,000     122,400
     Ending Balance                  1,789,700 1,661,100 1,320,900 2,135,900 2,542,800 3,064,300 2,102,300 2,997,500 2,367,900 3,308,800                     2,785,000




                                                                                                                                                                                                                          25
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                                            10-Year Financial Projection




 The Excel Workbook for the 10 Year Projection consists of the following worksheets:

 Page #

     1       Cover Page

     2       Key Assumptions and Summary of Results (one page)

     3       Other Assumptions (two pages)

     5       A Detailed Summary (three pages)

     8       A Departmental Expense Summary with labor and non-labor expenses for each department (three pages)

     11      A Departmental Expense Worksheet with wage, payroll tax, benefit, and non-labor expense detail for each
                department ( seven pages)




                                                                                                                       26
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                                                                               10-Year Financial Projection



                                                                                         Departmental Expense Summary
                                                                              Budget
                                Actual       Actual      Actual       Actual (Adjusted) -------------------------------------------------------------------------Projected--------------------------------------------------------------------
                                 2005         2006        2007         2008       2009          2010            2011            2012            2013            2014       2015            2016            2017            2018            2019

   G&A
       Labor Total             529,624      561,285     568,459      563,523       597,370       608,500        629,300        653,400       679,900        707,900        738,100       770,000        803,800       839,700        877,800
       Other Expenses          253,901      285,415     321,982      380,677       422,256       438,700        457,600        478,200       499,700        522,700        546,700       571,800        598,100       625,600        654,400
            Total              783,525      846,700     890,441      944,200     1,019,626     1,047,200      1,086,900      1,131,600     1,179,600      1,230,600      1,284,800     1,341,800      1,401,900     1,465,300      1,532,200
                    % Inc                      8.1%        5.2%         6.0%          8.0%          2.7%           3.8%           4.1%          4.2%           4.3%           4.4%          4.4%           4.5%          4.5%           4.6%
   Common Area
       Labor Total             206,794      205,854     227,148      230,899       255,670       262,600        273,400        285,800       299,500        314,000        329,800       346,600        364,700       384,000        404,700
       Other Expenses           84,648       93,957      87,400      126,439       137,334       142,700        148,800        155,500       162,500        170,000        177,800       186,000        194,600       203,600        213,000
            Total              291,442      299,811     314,548      357,338       393,004       405,300        422,200        441,300       462,000        484,000        507,600       532,600        559,300       587,600        617,700
                    % Inc                      2.9%        4.9%        13.6%         10.0%          3.1%           4.2%           4.5%          4.7%           4.8%           4.9%          4.9%           5.0%          5.1%           5.1%
   Road Repairs
       Street Repairs       (Treated as one of Assumptions in view of new approach to not fund Street Repairs through RRF)

   Facilities Maintenance
       Labor Total             140,648      147,396     158,947      160,476       171,600       175,400        182,000        189,500       197,800        206,600        216,200       226,300        237,100       248,600        260,900
       Other Expenses           77,701      111,670     110,142      150,700       145,904       151,600        158,100        165,200       172,600        180,500        188,800       197,500        206,600       216,100        226,000
            Total              218,349      259,066     269,089      311,176       317,504       327,000        340,100        354,700       370,400        387,100        405,000       423,800        443,700       464,700        486,900
                    % Inc                     18.6%        3.9%        15.6%          2.0%          3.0%           4.0%           4.3%          4.4%           4.5%           4.6%          4.6%           4.7%          4.7%           4.8%
   Janitorial
       Labor Total             126,225      161,011     161,091      182,562       238,340       243,800        253,200        264,000       275,800        288,400        302,100       316,600        332,100       348,700        366,400
       Other Expenses           34,242       47,614      77,764       74,058        77,310        80,300         83,800         87,600        91,500         95,700        100,100       104,700        109,500       114,500        119,800
          Total                160,467      208,625     238,855      256,620       315,650       324,100        337,000        351,600       367,300        384,100        402,200       421,300        441,600       463,200        486,200
                 % Inc                        30.0%       14.5%         7.4%         23.0%          2.7%           4.0%           4.3%          4.5%           4.6%           4.7%          4.7%           4.8%          4.9%           5.0%
   Patrol
       Labor Total             107,185      122,907     145,679      159,916       164,330       165,800        170,100        175,300       181,000        186,800        193,100       199,700        206,500       213,500        220,900
       Other Expenses           19,904       29,811      26,155       37,362        33,712        35,000         36,500         38,100        39,800         41,600         43,500        45,500         47,600        49,800         52,100
          Total                127,089      152,718     171,834      197,278       198,042       200,800        206,600        213,400       220,800        228,400        236,600       245,200        254,100       263,300        273,000
                 % Inc                        20.2%       12.5%        14.8%          0.4%          1.4%           2.9%           3.3%          3.5%           3.4%           3.6%          3.6%           3.6%          3.6%           3.7%
       Sub-Total             1,580,872    1,766,920   1,884,767    2,066,612     2,243,826     2,304,400      2,392,800      2,492,600     2,600,100      2,714,200      2,836,200     2,964,700      3,100,600     3,244,100      3,396,000
                 % Inc                        11.8%        6.7%         9.6%          8.6%          2.7%           3.8%           4.2%          4.3%           4.4%           4.5%          4.5%           4.6%          4.6%           4.7%




                                                                                                                                                                                                                                                  27
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                                                                        10-Year Financial Projection


                                                                                    Departmental Expense Summary
                                                                         Budget
                             Actual      Actual      Actual      Actual (Adjusted) ---------------------------------------------------------------------------------Projected--------------------------------------------------------------------------
                              2005        2006        2007        2008       2009          2010            2011            2012            2013            2014          2015         2016            2017            2018            2019
    Activity Center
       Labor Total              -           -           -           -             -              -              -              -              -              -             -              -              -              -              -
       Other Expenses         8,457       9,441       9,499       9,657        10,500         10,900         11,400         11,900         12,400         13,000        13,600         14,200         14,900         15,600         16,300
          Total               8,457       9,441       9,499       9,657        10,500         10,900         11,400         11,900         12,400         13,000        13,600         14,200         14,900         15,600         16,300
                 % Inc                    11.6%        0.6%        1.7%          8.7%           3.8%           4.6%           4.4%           4.2%           4.8%          4.6%           4.4%           4.9%           4.7%           4.5%
    Arts & Crafts
       Labor Total              -           -           -           -             -              -              -              -              -              -             -              -              -              -              -
       Other Expenses        15,961      16,286      19,125      16,981        19,170         19,900         20,800         21,700         22,700         23,700        24,800         25,900         27,100         28,300         29,600
          Total              15,961      16,286      19,125      16,981        19,170         19,900         20,800         21,700         22,700         23,700        24,800         25,900         27,100         28,300         29,600
                    % Inc                  2.0%       17.4%      -11.2%         12.9%           3.8%           4.5%           4.3%           4.6%           4.4%          4.6%           4.4%           4.6%           4.4%           4.6%
    Clubhouse
       Labor Total              -           -           -           -             -              -              -              -             -              -              -              -              -              -              -
       Other Expenses       167,310     183,209     215,415     219,184       230,250        239,200        249,500        260,700       272,400        284,900        298,000        311,700        326,000        341,000        356,700
          Total             167,310     183,209     215,415     219,184       230,250        239,200        249,500        260,700       272,400        284,900        298,000        311,700        326,000        341,000        356,700
                    % Inc                  9.5%       17.6%        1.7%          5.0%           3.9%           4.3%           4.5%          4.5%           4.6%           4.6%           4.6%           4.6%           4.6%           4.6%
    Fitness Center
        Labor Total          30,322      32,512      40,882      41,051        43,170         44,000         45,600         47,300         49,300         51,400        53,600         55,900         58,500         61,100         63,900
        Other Expenses       55,110      40,938      47,962      43,475        52,304         54,300         56,600         59,100         61,800         64,600        67,600         70,700         74,000         77,400         81,000
          Total              85,432      73,450      88,844      84,526        95,474         98,300        102,200        106,400       111,100        116,000        121,200        126,600        132,500        138,500        144,900
                    % Inc                -14.0%       21.0%       -4.9%         13.0%           3.0%           4.0%           4.1%          4.4%           4.4%           4.5%           4.5%           4.7%           4.5%           4.6%
    Pools & Spas
       Labor Total              -           -           -           -             -              -              -              -             -              -              -              -              -              -              -
       Other Expenses        57,610      83,422      87,520     102,885       114,205        118,700        123,800        129,400       135,200        141,400        147,900        154,700        161,800        169,200        177,000
          Total              57,610      83,422      87,520     102,885       114,205        118,700        123,800        129,400       135,200        141,400        147,900        154,700        161,800        169,200        177,000
                    % Inc                 44.8%        4.9%       17.6%         11.0%           3.9%           4.3%           4.5%          4.5%           4.6%           4.6%           4.6%           4.6%           4.6%           4.6%
    Tennis
       Labor Total           21,174      22,132      21,993      22,059        27,330         27,600         28,300         29,200         30,100         31,100        32,100         33,200         34,300         35,400         36,600
       Other Expenses        (9,714)     (9,984)     (1,333)     (5,916)       (5,850)        (5,300)        (5,900)        (6,800)        (7,700)        (8,600)       (9,600)       (10,700)       (11,800)       (12,900)       (14,100)
          Total              11,460      12,148      20,660      16,143        21,480         22,300         22,400         22,400        22,400         22,500         22,500         22,500         22,500         22,500         22,500
                    % Inc                  6.0%       70.1%      -21.9%         33.1%           3.8%           0.4%           0.0%          0.0%           0.4%           0.0%           0.0%           0.0%           0.0%           0.0%
       Sub-Total            346,230     377,956     441,063     449,376       491,079        509,300        530,100        552,500       576,200        601,500        628,000        655,600        684,800        715,100        747,000
                    % Inc                  9.2%       16.7%        1.9%          9.3%           3.7%           4.1%           4.2%          4.3%           4.4%           4.4%           4.4%           4.5%           4.4%           4.5%

    All Non-Revenue Depts 1,927,102    2,144,876   2,325,830   2,515,988    2,734,905      2,813,700      2,922,900      3,045,100     3,176,300      3,315,700      3,464,200      3,620,300      3,785,400      3,959,200     4,143,000
         Year to Year Increase             11.3%        8.4%        8.2%         8.7%           2.9%           3.9%           4.2%          4.3%           4.4%           4.5%           4.5%           4.6%           4.6%          4.6%




                                                                                                                                                                                                                                               28
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                                                                         10-Year Financial Projection



                                                                                     Departmental Expense Summary
                                                                          Budget
                              Actual      Actual      Actual      Actual (Adjusted) ---------------------------------------------------------------------------------Projected--------------------------------------------------------------------------
                               2005        2006        2007        2008       2009          2010            2011            2012            2013            2014          2015         2016            2017            2018            2019
    Golf Maintenance
        Labor Total           719,132     794,159     811,207     794,858      885,170        904,400        938,000        976,700     1,019,200      1,064,400      1,113,200      1,165,100      1,220,300      1,279,200     1,342,000
        Other Expenses        737,376     849,381     877,078     974,469    1,000,040      1,039,000      1,083,700      1,132,500     1,183,500      1,237,900      1,294,800      1,354,400      1,416,700      1,481,900     1,550,100
           Total            1,456,508   1,643,540   1,688,285   1,769,327    1,885,210      1,943,400      2,021,700      2,109,200     2,202,700      2,302,300      2,408,000      2,519,500      2,637,000      2,761,100     2,892,100
                  % Inc                     12.8%        2.7%        4.8%         6.5%           3.1%           4.0%           4.3%          4.4%           4.5%           4.6%           4.6%           4.7%           4.7%          4.7%
    Golf Admin
        Labor Total          189,971     171,249     196,912     179,288       178,111        181,100        187,000        193,800       201,300        209,200        217,700        226,700        236,200        246,200        256,800
        Other Expenses        38,261      47,310      53,721      52,962        45,502         47,300         49,300         51,500        53,800         56,300         58,900         61,600         64,400         67,400         70,500
           Total             228,232     218,559     250,633     232,250       223,613        228,400        236,300        245,300       255,100        265,500        276,600        288,300        300,600        313,600        327,300
                  % Inc                    -4.2%       14.7%       -7.3%         -3.7%           2.1%           3.5%           3.8%          4.0%           4.1%           4.2%           4.2%           4.3%           4.3%           4.4%

        Total Course Exp.   1,684,740   1,862,099   1,938,918   2,001,577    2,108,823      2,171,800      2,258,000      2,354,500     2,457,800      2,567,800      2,684,600      2,807,800      2,937,600      3,074,700     3,219,400

    Golf Shop
        Labor Total           61,569      51,755      61,522      55,973        22,680         23,100         23,800         24,700         25,700         26,700        27,800         28,900         30,200         31,500         32,800
        Other Expenses        10,869      13,341      13,829      10,198        10,002         10,400         10,800         11,300         11,800         12,300        12,900         13,500         14,100         14,700         15,400
            Total             72,438       65,096      75,351      66,171       32,682         33,500         34,600         36,000        37,500         39,000         40,700         42,400         44,300         46,200        48,200
                  % Inc                    -10.1%       15.8%      -12.2%       -50.6%           2.5%           3.3%           4.0%          4.2%           4.0%           4.4%           4.2%           4.5%           4.3%          4.3%
        Golf Sub-Total      1,757,178   1,927,195   2,014,269   2,067,748    2,141,505      2,205,300      2,292,600      2,390,500     2,495,300      2,606,800      2,725,300      2,850,200      2,981,900      3,120,900     3,267,600
                  % Inc                      9.7%        4.5%        2.7%         3.6%           3.0%           4.0%           4.3%          4.4%           4.5%           4.5%           4.6%           4.6%           4.7%          4.7%
    F&B
        Labor Total          620,643     723,291     925,740     916,975       910,400        927,800        959,500        996,100     1,036,500      1,079,100      1,125,100      1,173,700      1,225,300      1,279,900     1,337,900
        Other Expenses       125,851     202,617     203,310     166,199       176,776        183,700        191,600        200,200       209,200        218,800        228,900        239,400        250,400        261,900       273,900
            Total            746,494     925,908    1,129,050   1,083,174    1,087,176      1,111,500      1,151,100      1,196,300     1,245,700      1,297,900      1,354,000      1,413,100      1,475,700      1,541,800     1,611,800
                    % Inc                  24.0%        21.9%       -4.1%         0.4%           2.2%           3.6%           3.9%          4.1%           4.2%           4.3%           4.4%           4.4%           4.5%          4.5%


    Total                   4,430,774   4,997,979   5,469,149   5,666,910    5,963,586      6,130,500      6,366,600      6,631,900     6,917,300      7,220,400      7,543,500      7,883,600      8,243,000      8,621,900     9,022,400




                                                                                                                                                                                                                                                29
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                                            10-Year Financial Projection




 The Excel Workbook for the 10 Year Projection consists of the following worksheets:

 Page #

     1       Cover Page

     2       Key Assumptions and Summary of Results (one page)

     3       Other Assumptions (two pages)

     5       A Detailed Summary (three pages)

     8       A Departmental Expense Summary with labor and non-labor expenses for each department (three pages)

     11      A Departmental Expense Worksheet with wage, payroll tax, benefit, and non-labor expense detail for each
                department ( seven pages)




                                                                                                                       30
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                                                                            10-Year Financial Projection
                                                                                        Departmental Expense Worksheet
                                                                                              Expense Data Entry
                                                                                              Departmental Totals
                                                                                   Budget
                                                                                     ---------------------------------------------------------------------------------Projected---------------------------------------------------------------------------------
                                                                                  (Adjusted)
                                           Key Assumptions                               2009           2010            2011            2012            2013           2014        2015            2016            2017            2018            2019
                                           General Inflation                              0.2%           1.9%           2.3%           2.5%            2.5%           2.6%           2.6%            2.6%           2.6%           2.6%            2.6%
                                           Wage Increase                                                 0.7%           2.4%           2.8%            3.0%           3.0%           3.1%            3.1%           3.1%           3.1%            3.1%
                                           Benefits Increase                                            10.0%          10.0%          10.0%           10.0%          10.0%          10.0%           10.0%          10.0%          10.0%           10.0%

                                                                                  Budget
                                  Actual       Actual          Actual              ---------------------------------------------------------------------------------Projected---------------------------------------------------------------------------------
                                                                         Actual (Adjusted)
 Totals (No Depreciation)          2005         2006            2007      2008        2009            2010            2011            2012           2013            2014        2015            2016            2017           2018            2019
 G&A                            783,525      846,700      890,441       944,200 1,019,626 1,047,200 1,086,900 1,131,600 1,179,600 1,230,600 1,284,800 1,341,800 1,401,900 1,465,300 1,532,200
 Common Area                    291,442      299,811      314,548       357,338   393,004   405,300   422,200   441,300   462,000   484,000   507,600   532,600   559,300   587,600   617,700
 Road Repairs
 Facilities Maintenance         218,349   259,066   269,089   311,176   317,504   327,000   340,100   354,700   370,400   387,100   405,000   423,800   443,700   464,700   486,900
 Janitorial                     160,467   208,625   238,855   256,620   315,650   324,100   337,000   351,600   367,300   384,100   402,200   421,300   441,600   463,200   486,200
 Patrol                         127,089   152,718   171,834   197,278   198,042   200,800   206,600   213,400   220,800   228,400   236,600   245,200   254,100   263,300   273,000
                              1,580,872 1,766,920 1,884,767 2,066,612 2,243,826 2,304,400 2,392,800 2,492,600 2,600,100 2,714,200 2,836,200 2,964,700 3,100,600 3,244,100 3,396,000

 Activity Center                  8,457        9,441        9,499         9,657       10,500         10,900         11,400         11,900          12,400         13,000         13,600          14,200         14,900         15,600          16,300
 Arts & Crafts                   15,961       16,286       19,125        16,981       19,170         19,900         20,800         21,700          22,700         23,700         24,800          25,900         27,100         28,300          29,600
 Clubhouse                      167,310      183,209      215,415       219,184      230,250        239,200        249,500        260,700         272,400        284,900        298,000         311,700        326,000        341,000         356,700
 Fitness Center                  85,432       73,450       88,844        84,526       95,474         98,300        102,200        106,400         111,100        116,000        121,200         126,600        132,500        138,500         144,900
 Pools & Spas                    57,610       83,422       87,520       102,885      114,205        118,700        123,800        129,400         135,200        141,400        147,900         154,700        161,800        169,200         177,000
 Tennis                          11,460       12,148       20,660        16,143       21,480         22,300         22,400         22,400          22,400         22,500         22,500          22,500         22,500         22,500          22,500
                                346,230      377,956      441,063       449,376      491,079        509,300        530,100        552,500         576,200        601,500        628,000         655,600        684,800        715,100         747,000

           Sub-Total          1,927,102 2,144,876 2,325,830 2,515,988 2,734,905 2,813,700 2,922,900 3,045,100 3,176,300 3,315,700 3,464,200 3,620,300 3,785,400 3,959,200 4,143,000

 Golf Maintenance             1,456,508 1,643,540 1,688,285 1,769,327 1,885,210 1,943,400 2,021,700 2,109,200 2,202,700 2,302,300 2,408,000 2,519,500 2,637,000 2,761,100 2,892,100
 Golf Admin                     228,232   218,559   250,633   232,250   223,613   228,400   236,300   245,300   255,100   265,500   276,600   288,300   300,600   313,600   327,300
 Golf Shop                       72,438    65,096    75,351    66,171    32,682    33,500    34,600    36,000    37,500    39,000    40,700    42,400    44,300    46,200    48,200
                              1,757,178 1,927,195 2,014,269 2,067,748 2,141,505 2,205,300 2,292,600 2,390,500 2,495,300 2,606,800 2,725,300 2,850,200 2,981,900 3,120,900 3,267,600

 F&B                            746,494      925,908 1,129,050 1,083,174 1,087,176 1,111,500 1,151,100 1,196,300 1,245,700 1,297,900 1,354,000 1,413,100 1,475,700 1,541,800 1,611,800

           Total              4,430,774 4,997,979 5,469,149 5,666,910 5,963,586 6,130,500 6,366,600 6,631,900 6,917,300 7,220,400 7,543,500 7,883,600 8,243,000 8,621,900 9,022,400



 Notes: 1. F&B labor costs included for completeness. F&B Projection based on Labor % of sales, not projecting labor costs based on increase of previous year's labor costs.
         2. Data for 2005 from 2009 Final budget file.
         3. Data for 2006 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.
                                                                                                                                                                                                                                                        31
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                                                                          10-Year Financial Projection

                                                                                                             Wages

                                                        Assumed Wage Increase                          0.7%           2.4%            2.8%           3.0%           3.0%           3.1%           3.1%           3.1%           3.1%           3.1%


                                                                               Budget
                                   Actual      Actual       Actual              ---------------------------------------------------------------------------------Projected---------------------------------------------------------------------------------
                                                                       Actual (Adjusted)
                                    2005        2006         2007       2008        2009            2010            2011            2012           2013           2014         2015            2016            2017           2018            2019
  G&A                            451,667     474,517   476,830   464,769   486,380   489,785   501,539   515,583   531,050   546,982   563,938   581,420   599,444   618,027   637,186
  Common Area (Exc. K labor)     158,583     155,589   165,881   172,081   186,060   187,362   191,859   197,231   203,148   209,243   215,729   222,417   229,312   236,420   243,749
  Road Repairs                       -           -         -         -         -
  Facilities Maintenance         110,869     113,042   121,702   126,793   132,690   133,619   136,826   140,657   144,877   149,223   153,849   158,618   163,535   168,605   173,832
  Janitorial                     101,007     132,982   131,965   152,176   181,090   182,358   186,734   191,963   197,722   203,653   209,967   216,476   223,186   230,105   237,238
  Patrol                          96,036     109,849   131,330   144,557   146,550   147,576   151,118   155,349   160,009   164,810   169,919   175,186   180,617   186,216   191,989
             Sub-Total           918,162     985,979 1,027,708 1,060,376 1,132,770 1,140,699 1,168,076 1,200,782 1,236,806 1,273,910 1,313,401 1,354,117 1,396,094 1,439,373 1,483,994

  Activity Center                    -           -            -          -              -              -              -              -              -              -              -              -              -              -              -
  Arts & Crafts                      -           -            -          -              -              -              -              -              -              -              -              -              -              -              -
  Fitness Center                  24,580      26,013       33,159     33,099         34,510         34,752         35,586         36,582         37,679         38,810         40,013         41,253         42,532         43,851         45,210
  Pools & Spas                       -           -            -          -              -              -              -              -              -              -              -              -              -              -              -
  Tennis                          18,973      19,675       19,523     19,860         24,000         24,168         24,748         25,441         26,204         26,990         27,827         28,690         29,579         30,496         31,441
            Sub-Total             43,553      45,688       52,682     52,959         58,510         58,920         60,334         62,023         63,884         65,800         67,840         69,943         72,111         74,347         76,651

  Non-Rev. Dept Sub Total        961,715 1,031,667 1,080,390 1,113,335 1,191,280 1,199,619 1,228,410 1,262,805 1,300,689 1,339,710 1,381,241 1,424,060 1,468,205 1,513,720 1,560,645

  Golf Maintenance               573,862     637,272      640,222    636,262       686,530        691,336        707,928        727,750        749,582        772,070        796,004   820,680   846,121   872,351   899,394
  Golf Admin                     165,726     148,521      169,211    151,745       146,023        147,045        150,574        154,790        159,434        164,217        169,308   174,556   179,968   185,547   191,299
  Golf Shop                       49,207      40,787       47,956     43,954        18,441         18,570         19,016         19,548         20,135         20,739         21,382    22,044    22,728    23,432    24,159
  Golf Total                     788,795     826,580      857,389    831,961       850,994        856,951        877,518        902,088        929,151        957,025        986,693 1,017,281 1,048,816 1,081,330 1,114,851

  Total w/o F&B                1,750,510 1,858,247 1,937,779 1,945,296 2,042,274

  F&B                            493,772     565,215      740,738    724,809       712,810        717,800        735,027        755,608        778,276        801,624        826,474        852,095        878,510        905,744         933,822

  Total                        2,244,282 2,423,462 2,678,517 2,670,105 2,755,084 2,774,370 2,840,954 2,920,501 3,008,116 3,098,360 3,194,409 3,293,436 3,395,532 3,500,794 3,609,318
  Increase (year-to-year):                    8.0%     10.5%      -0.3%     3.2%      0.7%      2.4%      2.8%      3.0%      3.0%      3.1%      3.1%      3.1%      3.1%      3.1%
  Inflation:                                                                0.2%      1.9%      2.3%      2.5%      2.5%      2.6%      2.6%      2.6%      2.6%      2.6%      2.6%

  Notes: 1. F&B labor costs included for completeness. F&B Projection based on Labor % of sales, not projecting labor costs based on increase of previous year's labor costs.
         2. Data for 2005 from 2009 Final budget file.
         3. Data for 2006 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.



                                                                                                                                                                                                                                                   32
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                                                                          10-Year Financial Projection
                                                                                                        Payroll Taxes
                                                                                  Budget
                                      Actual     Actual     Actual              ---------------------------------------------------------------------------------Projected---------------------------------------------------------------------------------
                                                                       Actual (Adjusted)
                                       2005       2006       2007       2008        2009            2010            2011            2012           2013           2014         2015            2016            2017           2018            2019
                           % Wages
  G&A                         7.6%    34,389     35,653     34,525     36,202        36,890         37,224         38,117         39,184         40,360         41,571         42,859         44,188         45,558         46,970         48,426
               % of Wages               7.6%       7.5%       7.2%        7.8%          7.6%
  Common Area                 8.3%    12,613     12,892     13,032     13,339        15,350         15,551         15,924         16,370         16,861         17,367         17,906         18,461         19,033         19,623         20,231
               % of Wages               8.0%       8.3%       7.9%        7.8%          8.3%
  Facilities Maint.           8.2%     8,684      8,856      8,988      9,612        10,850         10,957         11,220         11,534         11,880         12,236         12,616         13,007         13,410         13,826         14,254
               % of Wages                7.8%       7.8%       7.4%      7.6%           8.2%
  Janitorial                  8.2%     8,970     10,176     11,517     12,176        14,970         14,953         15,312         15,741         16,213         16,700         17,217         17,751         18,301         18,869         19,454
               % of Wages                8.9%       7.7%       8.7%      8.0%           8.3%
  Patrol                      9.0%     9,306     10,520     11,593     12,712        13,310         13,282         13,601         13,981         14,401         14,833         15,293         15,767         16,256         16,759         17,279
               % of Wages                9.7%       9.6%       8.8%      8.8%           9.1%
               Sub-Total              73,962     78,097     79,655     84,041        91,370         91,967         94,174         96,811         99,715       102,706        105,890        109,173        112,557        116,047         119,644
               % of Wages              8.06%      7.92%      7.75%      7.93%         8.07%          8.06%          8.06%          8.06%          8.06%         8.06%          8.06%          8.06%          8.06%          8.06%           8.06%

  Fitness Center              8.5%     2,087      2,091      2,543       2,646         2,920         2,954          3,025          3,109          3,203          3,299          3,401          3,507          3,615           3,727          3,843
               % of Wages               8.5%       8.0%       7.7%        8.0%          8.5%
  Pools & Spas                           -          -          -          -              -
  Tennis                     11.2%     1,878      1,990      2,012       1,841         2,680         2,707          2,772          2,849          2,935          3,023          3,117          3,213          3,313           3,416          3,521
               % of Wages               9.9%      10.1%      10.3%       9.3%          11.2%
               Sub-Total               3,965      4,081      4,555      4,487         5,600          5,661          5,797          5,959          6,138          6,322          6,518          6,720          6,928           7,143          7,364
               % of Wages                9.1%      8.9%        8.6%      8.5%           9.6%           9.6%           9.6%          9.6%            9.6%           9.6%           9.6%           9.6%           9.6%            9.6%           9.6%
  Non-Rev. Dept Sub Total             77,927     82,178     84,210     88,528        96,970         97,627         99,970       102,770        105,853        109,028        112,408        115,893        119,485        123,189         127,008
          % of Wages                     8.1%       8.0%       7.8%      8.0%           8.1%
  Golf Maintenance      8.2%          46,673     52,308     51,150     50,753        56,440         56,690         58,050         59,675         61,466         63,310         65,272         67,296         69,382         71,533         73,750
  Golf M. % of Wages                     8.1%       8.2%       8.0%      8.0%           8.2%
  Golf Admin            9.5%          14,486     13,546     14,244     13,711        13,834         13,969         14,305         14,705         15,146         15,601         16,084         16,583         17,097         17,627         18,173
            % of Wages                   8.7%       9.1%       8.4%      9.0%           9.5%
  Golf Shop            10.0%           5,219      4,251      4,227      4,014         1,828          1,857          1,902          1,955          2,013          2,074          2,138          2,204          2,273           2,343          2,416
           % of Wages                  10.6%      10.4%        8.8%      9.1%           9.9%
  Golf Subtotal                       66,378     70,105     69,621     68,478        72,102         72,516         74,256         76,335         78,625         80,984         83,495         86,083         88,752         91,503         94,340

  F&B                        12.0%    56,964     68,510     85,557     83,500        85,010         86,136         88,203         90,673         93,393         96,195         99,177       102,251        105,421        108,689         112,059
               % of Wages              11.5%      12.1%      11.6%      11.5%         11.9%          12.0%          12.0%          12.0%          12.0%          12.0%          12.0%         12.0%          12.0%          12.0%           12.0%

  Total                              201,269    220,793    239,388    240,506      254,082        256,279        262,430        269,778        277,871        286,207        295,080        304,227        313,658        323,382         333,406
               % of Wages                9.0%       9.1%       8.9%      9.0%          9.2%           9.2%           9.2%          9.2%            9.2%           9.2%           9.2%           9.2%           9.2%           9.2%            9.2%

  Notes: 1. Projected Payroll Tax rate separately calculated for each department at indicated rate, based on historical payroll tax rate for that department.
         2. F&B labor costs included for completeness. F&B Projection based on Labor % of sales, not projecting labor costs based on increase of previous year's labor costs.
          3. Data for 2005 from 2009 Final budget file.
          4. Data for 2006 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.
                                                                                                                                                                                                                                                   33
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                                                                      10-Year Financial Projection
                                                                                                  Total Benefits
                                      Assumed Benefits Increase                                 10.0%        10.0%           10.0%           10.0%          10.0%       10.0%           10.0%           10.0%           10.0%           10.0%
                                                                          Budget
                            Actual        Actual     Actual                ---------------------------------------------------------------------------------Projected----------------------------------------------------------------------------------
                                                                  Actual (Adjusted)
                             2005          2006       2007         2008        2009            2010            2011            2012           2013           2014         2015            2016            2017           2018            2019
 G&A                        43,568       51,115     57,104        62,552        74,100         81,510         89,661         98,627       108,490        119,339        131,273        144,400        158,840         174,724        192,196
              % of Wages       9.6%       10.8%      12.0%         13.5%         15.2%          16.6%          17.9%          19.1%         20.4%          21.8%          23.3%          24.8%          26.5%           28.3%          30.2%
 Common Area                35,598       37,373     48,235        45,479        54,260         59,686         65,655         72,220        79,442         87,386         96,125        105,737        116,311         127,942        140,736
              % of Wages     22.4%        24.0%      29.1%         26.4%         29.2%          31.9%          34.2%          36.6%         39.1%          41.8%          44.6%          47.5%          50.7%           54.1%          57.7%
 Road Repairs                   -           -          -             -             -

 Facilities Maintenance     21,095       25,498     28,257     24,071          28,060         30,866         33,953         37,348         41,083         45,191         49,710         54,681         60,149          66,164         72,780
              % of Wages     19.0%        22.6%      23.2%      19.0%           21.1%          23.1%          24.8%          26.6%          28.4%          30.3%          32.3%          34.5%          36.8%           39.2%          41.9%
 Janitorial                 16,248       17,853     17,609     18,210          42,280         46,508         51,159         56,275         61,902         68,092         74,902         82,392         90,631          99,694        109,663
              % of Wages     16.1%        13.4%      13.3%      12.0%           23.3%          25.5%          27.4%          29.3%          31.3%          33.4%          35.7%          38.1%          40.6%           43.3%          46.2%
 Patrol                      1,843        2,538      2,756      2,647           4,470          4,917          5,409          5,950          6,545          7,199          7,919          8,711          9,582          10,540         11,594
              % of Wages       1.9%         2.3%       2.1%       1.8%            3.1%           3.3%           3.6%           3.8%           4.1%           4.4%           4.7%           5.0%           5.3%            5.7%           6.0%
              Sub-total    118,352      134,377    153,961    152,959         203,170        223,487        245,836        270,419        297,461        327,207        359,928        395,921        435,513         479,064        526,971
              % of Wages     12.9%        13.6%      15.0%      14.4%           17.9%          19.6%          21.0%          22.5%          24.1%          25.7%          27.4%          29.2%          31.2%           33.3%          35.5%

 Fitness Center              3,655        4,408      5,180         5,306          5,740         6,314          6,945          7,640          8,404          9,244         10,169         11,186         12,304         13,535         14,888
              % of Wages     14.9%        16.9%      15.6%         16.0%          16.6%         18.2%          19.5%          20.9%          22.3%          23.8%          25.4%          27.1%          28.9%          30.9%          32.9%
 Tennis                        323          467        458          358            650            715            787            865            952          1,047          1,152          1,267          1,393          1,533          1,686
              % of Wages      1.7%          2.4%       2.3%         1.8%           2.7%           3.0%           3.2%           3.4%           3.6%           3.9%           4.1%           4.4%           4.7%           5.0%           5.4%
              Sub-total      3,978        4,875      5,638        5,664          6,390          7,029          7,732          8,505          9,356         10,291         11,320         12,452         13,698         15,067         16,574
              % of Wages       9.1%       10.7%      10.7%        10.7%          10.9%          11.9%          12.8%          13.7%          14.6%          15.6%          16.7%          17.8%          19.0%          20.3%          21.6%
 Non-Rev. Dept Sub Total   122,330      139,252    159,599    158,623         209,560        230,516        253,568        278,924        306,817        337,498        371,248        408,373        449,210         494,132        543,545
         % of Wages          12.7%        13.5%      14.8%      14.2%           17.6%          19.2%          20.6%          22.1%          23.6%          25.2%          26.9%          28.7%          30.6%           32.6%          34.8%

 Golf Maintenance           98,597      104,579    119,835    107,843         142,200        156,420        172,062        189,268        208,195        229,015        251,916        277,108        304,818         335,300        368,830
          % of Wages         17.2%        16.4%      18.7%      16.9%           20.7%          22.6%          24.3%          26.0%          27.8%          29.7%          31.6%          33.8%          36.0%           38.4%          41.0%
 Golf Admin                  9,759        9,182     13,457     13,832          18,254         20,079         22,087         24,296         26,726         29,398         32,338         35,572         39,129          43,042         47,346
              % of Wages       5.9%         6.2%       8.0%       9.1%          12.5%          13.7%          14.7%          15.7%          16.8%          17.9%          19.1%          20.4%          21.7%           23.2%          24.7%
 Golf Shop                   7,143        6,717      9,339      8,005           2,411          2,652          2,917          3,209          3,530          3,883          4,271          4,698          5,168           5,685          6,254
              % of Wages     14.5%        16.5%      19.5%      18.2%           13.1%          14.3%          15.3%          16.4%          17.5%          18.7%          20.0%          21.3%          22.7%           24.3%          25.9%
              Sub-Total    115,499      120,478    142,631    129,680         162,865        179,152        197,067        216,774        238,451        262,296        288,526        317,378        349,116         384,028        422,431
              % of Wages     14.6%         14.6%      16.6%        15.6%          19.1%          20.9%          22.5%          24.0%          25.7%          27.4%          29.2%          31.2%          33.3%           35.5%          37.9%
 F&B                        69,907       89,566     99,445    108,666         112,580        123,838        136,222        149,844        164,828        181,311        199,442        219,387        241,325         265,458        292,004
              % of Wages     14.2%        15.8%      13.4%      15.0%           15.8%          17.3%          18.5%          19.8%          21.2%          22.6%          24.1%          25.7%          27.5%           29.3%          31.3%

 Total Benefits            307,736      349,296    401,675    396,969         485,005        533,506        586,856        645,542        710,096        781,106        859,216        945,138 1,039,652 1,143,617 1,257,979
            % of Wages       13.7%        14.4%      15.0%      14.9%           17.6%          19.2%          20.7%          22.1%          23.6%          25.2%          26.9%          28.7%     30.6%     32.7%     34.9%
 Year to Year Increase                    13.5%      15.0%       -1.2%          22.2%          10.0%          10.0%          10.0%          10.0%          10.0%          10.0%          10.0%     10.0%     10.0%     10.0%
 Inflation:                                                                      0.2%           1.9%           2.3%           2.5%           2.5%           2.6%           2.6%           2.6%      2.6%      2.6%      2.6%
 Note: Subtotal page
                                                                                                                                                                                                                                               34
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                                                                         10-Year Financial Projection




                                                                                                  Total Taxes & Benefits
                                                                                   Budget
                                    Actual      Actual      Actual               ---------------------------------------------------------------------------------Projected-------------------------------------------------------------------------------
                                                                        Actual (Adjusted)
                                     2005        2006        2007        2008        2009            2010            2011            2012           2013           2014         2015            2016            2017           2018            2019
   Non-Revenue Departments        200,257     221,430     243,809     247,151       306,530        328,143        353,538        381,694        412,669        446,527        483,656        524,266        568,696        617,321        670,553
           % of Wages               20.8%       21.5%       22.6%       22.2%         25.7%          27.4%          28.8%          30.2%          31.7%          33.3%          35.0%          36.8%          38.7%          40.8%          43.0%

   Golf Departments               181,877     190,583     212,252     198,158       234,968        251,668        271,323        293,109        317,077        343,280        372,021        403,461        437,868        475,531        516,770
            % of Wages              23.1%       23.1%       24.8%       23.8%         27.6%          29.4%          30.9%          32.5%          34.1%          35.9%          37.7%          39.7%          41.7%          44.0%          46.4%

   F & B Department               126,871     158,076     185,002     192,166       197,590        209,974        224,425        240,517        258,221        277,506        298,619        321,638        346,746        374,147        404,062
            % of Wages              25.7%       28.0%       25.0%       26.5%         27.7%          29.3%          30.5%          31.8%          33.2%          34.6%          36.1%          37.7%          39.5%          41.3%          43.3%

            Total                 509,005     570,089     641,063     637,475       739,088        789,785        849,286        915,320        987,967 1,067,313 1,154,296 1,249,365 1,353,310 1,466,999 1,591,385
            % of Wages                22.7%       23.5%       23.9%       23.9%         26.8%          28.5%          29.9%          31.3%          32.8%          34.4%          36.1%          37.9%          39.9%          41.9%          44.1%

   Notes: 1. Subtotal page.
          2.. F&B labor costs included for completeness. F&B Projection based on Labor % of sales, not projecting labor costs based on increase of previous year's labor costs.
          2. Data for 2005 from 2009 Final budget file.
          3. Data for 2006 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.




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                                                                         10-Year Financial Projection



                                                                                                 Total Labor Costs
                                                                             Budget
                                  Actual     Actual      Actual               ---------------------------------------------------------------------------------Projected----------------------------------------------------------------------------------
                                                                     Actual (Adjusted)
                                   2005       2006        2007        2008        2009            2010            2011            2012           2013           2014         2015            2016            2017           2018            2019
 G&A                            529,624    561,285     568,459     563,523       597,370        608,500        629,300        653,400        679,900        707,900        738,100        770,000        803,800         839,700        877,800
 Common Area                    206,794    205,854     227,148     230,899       255,670        262,600        273,400        285,800        299,500        314,000        329,800        346,600        364,700         384,000        404,700
 Road Repairs
 Facilities Maintenance         140,648   147,396   158,947   160,476   171,600   175,400   182,000   189,500   197,800   206,600   216,200   226,300   237,100   248,600   260,900
 Janitorial                     126,225   161,011   161,091   182,562   238,340   243,800   253,200   264,000   275,800   288,400   302,100   316,600   332,100   348,700   366,400
 Patrol                         107,185   122,907   145,679   159,916   164,330   165,800   170,100   175,300   181,000   186,800   193,100   199,700   206,500   213,500   220,900
                              1,110,476 1,198,453 1,261,324 1,297,376 1,427,310 1,456,100 1,508,000 1,568,000 1,634,000 1,703,700 1,779,300 1,859,200 1,944,200 2,034,500 2,130,700

 Activity Center
 Arts & Crafts
 Fitness Center                  30,322      32,512     40,882      41,051         43,170         44,000         45,600         47,300         49,300         51,400         53,600         55,900         58,500         61,100         63,900
 Pools & Spas
 Tennis                          21,174      22,132     21,993      22,059         27,330         27,600         28,300         29,200         30,100         31,100         32,100         33,200         34,300         35,400         36,600
           Sub Total             51,496      54,644     62,875      63,110         70,500         71,600         73,900         76,500         79,400         82,500         85,700         89,100         92,800         96,500        100,500

 Golf Maintenance               719,132   794,159   811,207   794,858   885,170   904,400   938,000   976,700 1,019,200 1,064,400 1,113,200 1,165,100 1,220,300 1,279,200 1,342,000
 Golf Admin                     189,971   171,249   196,912   179,288   178,111   181,100   187,000   193,800   201,300   209,200   217,700   226,700   236,200   246,200   256,800
 Golf Shop                       61,569    51,755    61,522    55,973    22,680    23,100    23,800    24,700    25,700    26,700    27,800    28,900    30,200    31,500    32,800
           Golf Total           970,672 1,017,163 1,069,641 1,030,119 1,085,961 1,108,600 1,148,800 1,195,200 1,246,200 1,300,300 1,358,700 1,420,700 1,486,700 1,556,900 1,631,600

 F&B                            620,643    723,291     925,740     916,975       910,400        927,800        959,500        996,100 1,036,500 1,079,100 1,125,100 1,173,700 1,225,300 1,279,900 1,337,900

          Total               2,753,287 2,993,551 3,319,580 3,307,580 3,494,171 3,564,100 3,690,200 3,835,800 3,996,100 4,165,600 4,348,800 4,542,700 4,749,000 4,967,800 5,200,700
 Year to Year Increase                         8.7%       10.9%       -0.4%           5.6%           2.0%           3.5%           3.9%           4.2%           4.2%           4.4%           4.5%           4.5%           4.6%           4.7%
 Inflation                                                                            0.2%           1.9%           2.3%           2.5%           2.5%           2.6%           2.6%           2.6%           2.6%           2.6%           2.6%

 Notes: 1. Subtotal page. All date for 2005 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.
        2. Data for 2005 from 2009 Final budget file.
        3. Data for 2006 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.




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                                                                              10-Year Financial Projection


                                                                                                     Non-Labor Expenses
                     Non-Labor Expenses Cost Increase Above inflation          =            2.0%
                                              Projected Rate of Increase                                   3.9%           4.3%           4.5%           4.5%            4.6%           4.6%           4.6%           4.6%           4.6%           4.6%
                                                                                    Budget
                                     Actual       Actual     Actual                  ---------------------------------------------------------------------------------Projected----------------------------------------------------------------------------------
                                                                           Actual (Adjusted)
 (No Depreciation)                    2005         2006       2007          2008         2009            2010            2011            2012           2013           2014         2015            2016            2017           2018            2019
 G & A (w/o Income Taxes)          253,901      285,415    321,982     380,677         422,256        438,700        457,600         478,200        499,700        522,700        546,700        571,800        598,100        625,600        654,400
 Common Area (Inc K Labor)          84,648       93,957     87,400     126,439         137,334        142,700        148,800         155,500        162,500        170,000        177,800        186,000        194,600        203,600        213,000
 Road Repairs                          -            -          -           -               -
 Facilities Maintenance             77,701      111,670    110,142     150,700         145,904        151,600        158,100         165,200        172,600   180,500   188,800   197,500   206,600   216,100   226,000
 Janitorial (includes K Labor)      34,242       47,614     77,764      74,058          77,310         80,300         83,800          87,600         91,500    95,700   100,100   104,700   109,500   114,500   119,800
 Patrol                             19,904       29,811     26,155      37,362          33,712         35,000         36,500          38,100         39,800    41,600    43,500    45,500    47,600    49,800    52,100
                                   470,396      568,467    623,443     769,236         816,516        848,300        884,800         924,600        966,100 1,010,500 1,056,900 1,105,500 1,156,400 1,209,600 1,265,300

 Activity Center                     8,457        9,441      9,499       9,657          10,500         10,900         11,400          11,900         12,400         13,000         13,600         14,200         14,900         15,600         16,300
 Arts & Crafts                      15,961       16,286     19,125      16,981          19,170         19,900         20,800          21,700         22,700         23,700         24,800         25,900         27,100         28,300         29,600
 Clubhouse                          167,310     183,209    215,415     219,184         230,250        239,200        249,500         260,700        272,400        284,900        298,000        311,700        326,000        341,000        356,700
 Fitness Center                     55,110       40,938     47,962      43,475          52,304         54,300         56,600          59,100         61,800         64,600         67,600         70,700         74,000         77,400         81,000
 Pools & Spas                       57,610       83,422     87,520     102,885         114,205        118,700        123,800         129,400        135,200        141,400        147,900        154,700        161,800        169,200        177,000
 Tennis (includes Billed Costs)     (9,714)      (9,984)    (1,333)     (5,916)         (5,850)        (5,300)        (5,900)         (6,800)        (7,700)        (8,600)        (9,600)       (10,700)       (11,800)       (12,900)       (14,100)
                                   294,734      323,312    378,188     386,266         420,579        437,700        456,200         476,000        496,800        519,000        542,300        566,500        592,000        618,600        646,500

 Golf Maintenance                  737,376      849,381    877,078   974,469 1,000,040 1,039,000 1,083,700 1,132,500 1,183,500 1,237,900 1,294,800 1,354,400 1,416,700 1,481,900 1,550,100
 Golf Admin                         38,261       47,310     53,721    52,962    45,502    47,300    49,300    51,500    53,800    56,300    58,900    61,600    64,400    67,400    70,500
 Golf Shop                          10,869       13,341     13,829    10,198    10,002    10,400    10,800    11,300    11,800    12,300    12,900    13,500    14,100    14,700    15,400
                                   786,506      910,032    944,628 1,037,629 1,055,544 1,096,700 1,143,800 1,195,300 1,249,100 1,306,500 1,366,600 1,429,500 1,495,200 1,564,000 1,636,000

 F&B                               125,851      202,617    203,310     166,199         176,776        183,700        191,600         200,200        209,200        218,800        228,900        239,400        250,400        261,900        273,900

                     Total        1,677,487 2,004,428 2,149,569 2,359,330 2,469,415 2,566,400 2,676,400 2,796,100 2,921,200 3,054,800 3,194,700 3,340,900 3,494,000 3,654,100 3,821,700
 Increase (Year to year)                        19.5%      7.2%      9.8%      4.7%      3.9%      4.3%      4.5%      4.5%      4.6%      4.6%      4.6%      4.6%      4.6%      4.6%
 Inflation                                                                     0.2%      1.9%      2.3%      2.5%      2.5%      2.6%      2.6%      2.6%      2.6%      2.6%      2.6%

 Notes: 1. Non-Labor Expenses assumend to increase at general inflation rate listed above.
        2. Data for 2005 from 2009 Final budget file.
        3. Data for 2006 to 2009 from Controller's workbook 10 Year Financials 2009.0409 which contains 2009 budget date updated with 2008 Actual results.




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Description: 10 Year Financial Projection document sample