HomeMy WebLinkAbout2008-12-16; Public Financing Authority; 38; The Crossings at Carlsbad Golf Course Budget 200914
\$ygg/ CARLSBAD PUBLIC FINANCING AUTHORITY - AGENDA BILL
AB#
MTG.
DEPT.
38
12/16/08
FIN
APPROVAL OF THE CROSSINGS AT
CARLSBAD GOLF COURSE BUDGET
AND MUNICIPAL LEASE AGREEMENT
FOR 2009
DEPT. HEAD
CITY ATTY.
CITY MGR.
^ K
~lj^~(JL>-
RECOMMENDED ACTION:
It is recommended the Board of Directors of the Carlsbad Public Financing Authority (Authority)
adopt Resolution No. 48 approving the 2009 Operating and Capital Budget for
The Crossings at Carlsbad Golf Course.
It is recommended the Board of Directors of the Carlsbad Public Financing Authority (CPFA)
adopt Resolution No. 49 approving an amendment to the existing Municipal
Lease Agreement with Textron Financial Corporation for the purchase of golf carts.
ITEM EXPLANATION:
The Authority is the joint powers entity formed by the City of Carlsbad ancf Carlsbad Municipal
Water District to be responsible for the finance, construction, operation and maintenance of The
Crossings at Carlsbad Golf Course (The Crossings) on behalf of the City of Carlsbad, which is
the owner of the property. On May 2, 2006, the Authority retained KemperSports Management,
Inc. (KSM) to manage and operate the golf course and associated improvements. The
Crossings opened to the public August 2007. For the Authority's consideration, KSM has
prepared a 2009 calendar year operating and capital budget for The Crossings. This operating
budget for 2009 is an estimate based on actual operating performance for calendar year 2008
and the experience of KSM with other similar golf courses.
The Crossings has been negatively affected by the slow economy especially in paid rounds and
group golf events which has affected the greens fees revenue. KSM has considered the slow
economy in developing their proposed budget for 2009. The 2009 Budget estimates that The
Crossings will generate operating revenues of approximately $6.4 million which is relatively flat
compared to the 2008 projections. The operating expenses, food and beverage service and
debt service, in addition to setting aside funds for future capital needs, is estimated at $7.3
million or approximately 2.6% more than the 2008 projections primarily due to the Food and
Beverage Program. The annual operating loss is expected to be approximately $918,131. In
addition to the operating expenses, there are the habitat maintenance and monitoring costs
which are estimated at approximately $514,138. The habitat budget and the $918,131 for the
operating loss would need to be funded by the General Fund. In addition, the Crossings also
requires capital projects to continue to improve the health and safety of the golf course as well
DEPARTMENT CONTACT: Lisa Irvine 760-602-2430 lirvin@ci.carlsbad.ca.us
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
D
D
D
CONTINUED TO DATE SPECIFIC D
CONTINUED TO DATE UNKNOWN D
RETURNED TO STAFF D
OTHER - SEE MINUTES D
\
Page 2
as other projects that were not anticipated when the construction budget was developed. The
total amount requested for the capital budget is $197,950.
The following chart summarizes the proposed 2009 budget for The Crossings and compares it
to the 2008 projections.
Projected Revenues
Green Fees
Food and Beverage
Other
Projected Expenses
Cost of Sales
Payroll
Other Expenses
Revenues Less Expenses
Less Capital Reserve
Less Payments on Debt
Net Income/ (Loss) from Operations
Habitat Costs
Capital Project Requests
Net Cash Flow (General Fund Contribution)
Paid Rounds
Average Fee per Paid Round
2009
Budget
$3,200,969
$2,464,205
$718,315
$942,001
$2,600,734
$2,590,866
$249,888
$ 64,019
$1,104,000
($918,131)
$514,138
$197,950
($1,630,219)
50,550
$63.32
2008
Projections
$3,341,626
$2,311,196
$730,339
$922,458
$2,527,280
$2,492,825
$440,598
$68,350
$1,104,000
($731,752)
$582,086
$250,000
($1,563,838)
52,014
$64.24
Difference
($140,657)
$153,009
($12,024)
$19,543
$73,454
$98,041
($190,710)
($4,331)
0
($186,379)
($67,948)
($52,050)
($66,381)
(1,464)
($0.92)
Revenues - The majority of the revenues are generated from golf play rates and the food and
beverage operations. The golf revenue assumes that there will be approximately 50,550 paid
rounds of golf or an average of 4,212 per month. There are no proposed changes to the greens
fees.
PageS
Expenditures - The expenditures include the golf course, carts, pro shop, driving range, food
and beverage, marketing and administrative expenses. In addition, the expenditures include
KSM's management fee and performance incentive fee. The management fee for 2009 is
$157,500 and the incentive fee is estimated at $94,174.
Capital Reserve - 2% of greens fee revenues will be set aside for a capital reserve. The
capital reserve for 2009 is estimated to be approximately $64,019.
Payments on Debt - The Authority issued $18.5 million of tax exempt bonds to help finance
the construction of the golf course. The budget for debt service payments for 2009 is
$1,104,000 which is sufficient to cover the debt service requirements.
Habitat Costs - The development permits on the golf course require the restoration and
maintenance of large areas of habitat for 5 years or as long as it takes the habitat to become
established. It is estimated that the habitat costs may be $5 million over the five year period.
Costs are anticipated to be higher in the initial years and then will decline as the Coastal Sage
Scrub and other native plants and animals are better established. One of the more significant
costs during this time period is water. The mitigation areas require watering until the plants are
well established. Once established and accepted, the habitat created is anticipated to require
no irrigation and a minimal level of monitoring and maintenance. Once the habitat areas are
established, it is expected that the golf course operating revenues would be sufficient to cover
all the costs of operation including habitat maintenance. The proposed 2009 budget assumes
$514,138 for habitat maintenance and monitoring.
2009 Capital Projects - The request is for several projects to help improve the public safety of
the golf course as well as improve the payability and conditions of the course and grounds.
The chart lists the projects requested for 2009.
2009 Capital Improvement Projects
1.
2.
3.
Course Drainage
Add Steps on East Side of Clubhouse
Replant Slopes at Waterfall and Hole 7
TOTAL
$
$
$
$
155,950
12,000
30,000
197,950
MUNICIPAL LEASE AGREEMENT:
On May 22, 2007, the Carlsbad Public Financing Authority adopted Resolution No. 35
approving a municipal lease with Textron Financial for the purchase of a fleet of golf carts from
EzGo Incorporated. The amount of the purchase before taxes was $348,498. During the past
year, there have been cart failures due to battery failure. As a result, KemperSports
Management is recommending that the Carlsbad Public Financing Authority replace the fleet
with a newer model. The cost of the newer replacement fleet is $356,399 which will be
financed over 48 months. With reduced maintenance costs and efficiency savings, the total
cost is expected to be lower than the existing lease. The monthly lease for the new golf cart
fleet is $6,477 which is a savings of $138 per month compared to the current cost to lease and
operate the cart fleet.
Page 4
It is customary in the golf course industry to lease golf carts given the useful life of the carts as
well as the cost. A Municipal Lease Agreement, authorized by the Internal Revenue Code, is a
financing mechanism whereby the lease interest income to the lending institution is tax exempt
allowing the lending institution to offer a more favorable rate.
FISCAL IMPACT:
After paying the debt service and setting aside funding in a capital reserve, the golf course is
projected to have an operating net loss of $918,131 for calendar year 2009. There is $197,950
requested for capital projects and an additional $514,138 for habitat maintenance and
monitoring. The total requested from the General Fund Reserve for the 2009 budget will be
approximately $1,630,219.
The City's Fiscal Year 2008-09 adopted budget included an advance of $900,000 for the 2009
estimated shortfall. Included in the General Fund's Ten Year Financial Forecast is an advance
of approximately $1.45 million to cover the calendar year 2009 projected shortfall for the golf
course. In the Ten Year Financial Forecast, the $1.45 million is split between two fiscal years -
$900,000 in Fiscal Year 2008-09 and $550,000 in Fiscal Year 2009-10. The advance from the
General Fund Reserve does not impact the General Fund day to day operations. In the future,
when the golf course is able, the advance will be returned to the General Fund.
In the golf course business, if demand for golf course services is higher than anticipated, then
corresponding revenues and expenditures may also be higher than anticipated. It is
recommended that the Authority authorize the Executive Director the discretion to approve
additional expenditures above the 2009 Operating Budget if there are additional revenues
generated above the revenue budget to cover the proposed expenditures. For example, if
revenues generated are 105% of the budget, then the Executive Director would have the
discretion to approve additional expenditures up to the amount of the additional revenue
generated. In addition, due to the demand for food and beverage services which are generally
independent from golf course operations, it is recommended that the Authority authorize the
Executive Director the discretion to approve additional expenditures with the 2009 Food and
Beverage Program if there are additional revenues generated above the Food and Beverage
Program revenue budget to cover the proposed additional expenditures. For this purpose, the
Food and Beverage Program will be considered separate from other golf course operations.
This will be especially needed if there is more demand for catered events than originally
budgeted.
The lease of the golf carts will result in a monthly lease payment of $6,477 included in the
proposed golf course operating budget. The payment of $6,477 is an increase of $862 over the
current monthly payment. In order to offset this increase, EzGo Incorporated has reduced the
maintenance agreement cost by $450 per month. In addition, the newer carts are more energy
efficient and it is estimated that an additional $550 in savings per month will be realized. The
net of the monthly lease payment and the estimated energy savings is a savings of $138 per
month over the current cost to lease and operate the cart fleet.
Page 5
There is a balloon payment at the end of the 48 month golf cart lease, however, the Authority
will return the golf carts at that time and begin another lease with new carts, so there is no plan
to make the balloon payment.
ENVIRONMENTAL IMPACT:
On June 7, 2000 the Planning Commission adopted Resolution No. 4772 certifying the
Environmental Impact Report for the Carlsbad Municipal Golf Project, and the operation of the
golf course and maintenance and monitoring of habitat areas are within the scope of the EIR.
The operation, repair, maintenance and leasing or minor alterations of existing facilities falls
within the categorical exemption specified in CEQA guidelines Section 15301, Class 1 and has
been determined not to have a significant effect on the environment and exempt from the
provisions of CEQA.
EXHIBITS:
1) Resolution No. 48 approving the 2009 Budget for The Crossings.
2) 2009 Summary Budget for The Crossings.
3) Resolution No. 49 approving an amendment to the existing Municipal Lease
Agreement with Textron Financial Corporation for the purchase of golf carts.
4) Municipal Lease Agreement with Textron Financial Corporation and payment amortization
schedule.
Exhibit 1
1 RESOLUTION NO. 48
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD PUBLIC FINANCING AUTHORITY
3 APPROVING THE 2009 BUDGET FOR THE CROSSINGS
4 AT CARLSBAD.
5
WHEREAS, the Carlsbad Public Financing Authority, hereafter the "Authority",
6
has previously entered into a contract with Kemper Sports Management Incorporated
7
for the operation and maintenance of the Carlsbad City Golf Course, The Crossings at8
Carlsbad Golf Course, hereafter referred to as "The Crossings";
WHEREAS, Kemper Sports Management has developed a proposed 2009
11 Operating and Capital Budget for The Crossings.
12 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
13 Carlsbad Public Financing Authority of the City of Carlsbad, California, as follows:
14 1. That the above recitations are true and correct.
15
2. That the proposed 2009 Operating and Capital Budget for the Crossings is
16
approved as summarized in Exhibit 2.
3. That the Authority does hereby grant the Finance Director, at the direction
19 of the CPFA Executive Director, to provide advances as needed from the General Fund
20 Reserve for anticipated operating losses and capital costs for The Crossings.
21 4. That the CPFA Executive Director at his/her discretion is authorized to
22 approve expenditures above the 2009 Operating Budget if there are sufficient revenues
23
generated above the 2009 Operating Budget to cover these additional expenditures. In
24
addition, if the Food and Beverage Program revenue is higher than the 2009 Food and
25
Beverage Budget, then the CPFA Executive Director is authorized to approve26
27
28
(o
Exhibit 1
1 expenditures within the Food and Beverage Program up to that additional revenue
2 generated over the 2009 Budget estimate.
3 //
4 //
5
6
7
8
9 "
10 //
11 //
12 //
13 //
14 //
15
16
17
18
19 "
20 "
21 //
22 //
23 //
24 //
25 //
26
27
28
7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad
Public Financing Authority held on the 16th day of December, 2008, by the following
vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
-AUDE A LEWIS, Chairman of the Board
ATTEST:
M. WOO6) Secretary '
^
t e /Liy
cretary ' (T
Exhibit 2
The Crossings at Carlsbad
2009 Budget Summary
Revenues
Greens Fees $3,200,969
Food and Beverage $2,464,205
Other $718,315
Total Revenue $6,383,489
Expenditures
Personnel $2,600,734
Maintenance and Operations $3,532,867
Capital Outlay $197,950
Capital Reserve $64,019
Debt Service $1,104,000
Habitat Monitoring $514,138
Total Expenditures $8,013,708
Net Cash Flow ($1,630,219)
General Fund Contribution $1,630,219
Food and Beverage
Revenue $2,464,205
Expenditures $2,054,198
Exhibit 3
1 RESOLUTION NO. 49
2 A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE CARLSBAD PUBLIC FINANCING AUTHORITY
3 APPROVING AN AMENDMENT TO THE EXISTING
4 MUNICIPAL LEASE AGREEMENT WITH TEXTRON
FINANCIAL CORPORATION FOR THE REPLACEMENT
5 AND PURCHASE OF GOLF CARTS.
6
WHEREAS, the Carlsbad Public Financing Authority, hereafter the "Authority",
7
has previously entered into a contract with Kemper Sports Management Incorporated8
g for the operation and maintenance of the Carlsbad City Golf Course Project, The
IQ Crossings at Carlsbad Golf Course, hereafter referred to as the "Project";
11 WHEREAS, the Authority has previously entered into a Municipal Lease
12 Agreement with Textron Financial Corporation for the lease-purchase a fleet of golf
13 carts from EzGo Corporation;
14 WHEREAS, Kemper Sports Management is recommending that the Authority
replace the original fleet with a newer fleet via the existing Municipal Lease Agreement;
16
WHEREAS, the original golf fleet financing schedule will terminate when the
17
original golf fleet is returned to EzGo Corporation;18
19 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
2Q Carlsbad Public Financing Authority of the City of Carlsbad, California, as follows:
21 1. That the above recitations are true and correct.
22 2. That the Board authorizes the addition of the replacement fleet of 90 golf
23 carts be added to the Municipal Lease Agreement with Textron Financial Corporation
24 and the Executive Director of the Authority is authorized to execute said additional
25
financing schedules on behalf of the Authority.
26
3. That the Board authorizes the lease-purchase of the carts for $356,398.80
28 to be paid over a four year period.
JO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad
Public Financing Authority held on the 16th day of December, 2008, by the following
vote to wit:
AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn.
NOES: None.
ABSENT: None.
Chairman of the Board
ATTEST:
LjxLe-ji^ts^L
M. WOOD, Secretary
Exhibit 4
TEXTRON FINANCIAL
Lending help beyond expectations.
SCHEDULE No: 1028441, DATED 11-19-2008 TO THE
MUNICIPAL AGREEMENT, DATED 03-21-2007
1. DESCRIPTION OF THE EQUIPMENT:
SUPPLIER: E-Z-Go Southern California
QUANTITY: 90
DESCRIPTION OF EQUIPMENT: E-Z-GO RXV E
sun canopy, split windshields, message holder, ice chest, battery
fill system, hubcaps, logo and numbers, sand/seed bottles, state of
charge meter
SERIAL NUMBER (IF APPLICABLE):
together with all accessories, attachments, substitutions and accessions.
2. EQUIPMENT LOCATION: 5800 The Crossings Drive, Carlsbad CA 92008,
3. The Rental Payments will be made for the Equipment as follows:
PRINCIPAL INTEREST
DATE DUE COMPONENT COMPONENT
See attached Addendum A
TOTAL RENTAL
PAYMENT DUE
PURCHASE
OPTION
AMOUNT*
4. The terms and provisions of the Municipal Agreement described above (other
than to the extent that they relate solely to other Schedules or Equipment listed on other
Schedules) are hereby incorporated into this Schedule by reference and made a part
hereof.
Carlsbad Public Financing Authority, a
Joint Powers Authority formed between
the City of Carlsbad and the Carlsbad
Municipal Water District
By:
Nam
Title: Exec. Director
Lisa Hildabrand
TEXTRON FINANCIAL CORPORATION
By:
Name: Brent Willing
Title: AVP Operations
APPROVEOAS TO FORM
Assumes all Rental Payments and additional payments due on and prior to that date have been paid.
Schedule to Municipal Agreement
Revision Date: 02/05
3110022167-1028441
pared by: TFC / Textron InfoAnalysis
Payment Amortization Report
isee: Carlsbad Public Financing Authority-Addendum A.
Exhibit 4
11/17/2008 3:29:35 PM
File Name: INFOA.IAD
IT
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Date
1/15/09
2/15/09
3/15/09
4/15/09
5/15/09
6/15/09
7/15/09
8/15/09
9/15/09
10/15/09
11/15/09
12/15/09
2009
1/15/10
2/15/10
3/15/10
4/15/10
5/15/10
6/15/10
7/15/10
8/15/10
9/15/10
10/15/10
11/15/10
12/15/10
2010
1/15/11
2/15/11
3/15/11
4/15/11
5/15/11
6/15/11
7/15/11
8/15/11
9/15/11
10/15/11
11/15/11
12/15/11
Payment
0.00
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
71,250.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
77,727.60
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477,30
6,477.30
6,477.30
6,477.30
6,477.30
Principal
0.00
4,561.39
4,585.91
4,610.55
4,635.34
4,660.25
4.685.30
4,710.48
4,735.80
4,761.26
4,786.85
4,812.58
51,545.70
4,838.45
4,864.45
4,890.60
4,916.89
4,943.31
4,969.88
4,996.60
5,023.45
5,050.46
5,077.60
5,104.89
5,132.33
59,808.92
5,159.92
5,187.65
5,215.54
5,243.57
5,271.75
5,300.09
5,328.58
5,357.22
5,386.01
5,414.96
5,444.07
5,473.33
Interest
0.00
1.915.91
1,891.39
1,866.75
1,841.96
1,817.05
1.792.00
1,766.82
1,741.50
1,716.04
1,690.45
1.664.72
19,704.60
1,638.85
1,612.85
1,586.70
1.560.41
1,533.99
1,507.42
1.480.70
1.453.85
1,426.84
1,399.70
1.372.41
1,344.97
17,918.68
1,317.38
1,289.65
1,261.76
1,233.73
1.205.55
1,177.21
1,148.72
1,120.08
1,091.29
1,062.34
1,033.23
1,003.97
Principal
Balance
356,448.80
351,887.41
347,301.51
342,690.95
338,055.62
333,395.37
328,710.07
323,999.58
319,263.78
314.502.52
309,715.67
304,903.10
300,064.65
295,200.20
290.309.60
285,392.71
280,449.40
275.479.51
270,482.92
265,459.46
260,409.01
255,331.41
250,226.51
245,094.18
239,934.26
234,746.61
229,531.07
224,287.50
219,015.75
213,715.66
208,387.08
203,029.86
197,643.84
192.228.88
186,784.81
181,311.48
Accrued
Interest
0.00
1,915.91
1.891.39
1,866.75
1,841.96
1.817.05
1,792.00
1,766.82
1,741.50
1.716.04
1,690.45
1,664.72
19.704.60
1,638.85
1,612.85
1.586.70
1,560.41
1,533.99
1,507.42
1,480.70
1,453.85
1,426.84
1,399.70
1,372.41
1,344.97
17,918.68
1,317.38
1 ,289.65
1,261.76
1.233.73
1.205.55
1,177.21
1,148.72
1,120.08
1,091.29
1,062.34
1.033.23
1,003.97
Accrued
tnt Bal
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0,00
0.00
0.00
0.00
0.00
Net Balance
356,448.80
351,887.41
347,301.51
342,690.95
338,055.62
333,395.37
328,710.07
323.999.58
319,263.78
314,502.52
309.715.67
304,903.10
300,064.65
295.200.20
290.309.60
285,392.71
280,449.40
275,479.51
270,482.92
265,459.46
260,409.01
255,331.41
250,226.51
245,094.18
239,934.26
234,746.61
229,531.07
224,287.50
219,015.75
213,715.66
208.387.08
203,029.86
197,643.84
192,228.88
186,784.81
181,311.48
Version 7.4b Page 1
pared by: TFC / Textron InfoAnalysis
Payment Amortization Report
see: Carlsbad Public Financing Authority-Addendum A.
Exhibit 4
11/17/2008 3:29:35 PM
File Name: INFOA.IAD
ir
6
>7
;8
19
10
n
12
13
M
»5
»6
47
48
49
Date
2011
1/15/12
2/15/12
3/15/12
4/15/12
5/15/12
6/15/12
7/15/12
8/15/12
9/15/12
10/15/12
11/15/12
12/15/12
2012
1/15/13
2/15/13
2013
Totals:
Payment
77,727.60
6,477.30
6.477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
6,477.30
77,727.60
6,477.30
108,000.00
114.477.30
418.910.40
Principal
63.782.70
5,502.75
5,532.33
5,562.06
5,591.96
5,622.02
5,652.24
5,682.62
5,713.16
5,743.87
5.774.74
5.805.78
5.836.99
68,020.51
5.868.36
107.422.60
113.290.96
356,448.80
Interest
13,944.90
974.55
944.97
915.24
885.34
855.28
825.06
794.68
764.14
733.43
702.56
671.52
640.31
9,707.09
608.94
577.40
1,186.34
62,461.60
Principal
Balance
175,808.73
170.276.40
164,714.33
159,122.37
153,500.36
147,848.12
142,165.50
136.452.34
130,708,47
124,933.73
119,127.95
113,290.96
107,422.60
0.00
Accrued
Interest
13,944.90
974.55
944.97
915.24
885.34
855.28
825.06
794.68
764.14
733.43
702.56
671.52
640.31
9,707.09
608.94
577.40
1,186.34
62,461.60
Accrued
Int Bal
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Net Balance
175,808.73
170.276.40
164,714.33
159,122.37
153,500.36
147,848.12
142.165.50
136,452.34
130,708.47
124,933.73
119,127.95
113,290.96
107.422.60
0.00
/ersion 7.4b Page 2
TEXTRON FINANCIAL
Lending help beyond expectations.
INCUMBENCY CERTIFICATE
I certify that I am the duly elected or appointed and acting Secretary/Clerk of Carlsbad
Public Financing Authority, a Joint Powers Authority formed between the City of Carlsbad and
the Carlsbad Municipal Water District, apuh&ji &.<f.fleu organized under the laws of the State
of California, that I have custody of the records of su&h entity and that, as of the date hereof, the
individuals named below are the duly elected or appointed officers of the entity holding the
offices set forth opposite their respective names. I further certify that (i) the signatures set
opposite their respective names and titles are their true and authentic signatures, and (ii) the
officers have the authority on behalf of the entity to enter into Municipal Agreement, dated 03-
21-2007 and all Schedules thereto between Carlsbad Public Financing Authority, a Joint Powers
Authority formed between the City of Carlsbad and the Carlsbad Municipal Water District and
Textron Financial Corporation.
NAME
Lisa Hildabrand
TITLE
Exec. Director
IN WITNESS WHEREOF, I have duly executed this Certificate and affixed the seal of
Carlsbad Public Financing Authority, a Joint Powers Authority formed between the City of
Carlsbad and the Carlsbad Municipal Water District hereto this /jfe" day of/[
200% .
[SEAL]
personTigning the documents)
7592 - Incumbency Certificate
Revision Date: 01/05
3110022167-1028441
S-.l-f
ii
i
803B-G Information Return for Tax-Exempt Qovemmental OMIgattora
+ S«« Mparata Imftuctians.
C«Utt«« «f 0» 1*51* (trite -S wV*ir J! FOE? OOP. aSC few 9538-GC -- —
jltl R«fWrtinQ Authority If Amended Return, cfwcfc fwr« 1
bauet'a name Carlsbad Public Financing Authority
Number vttt stoat lot P O. to* * mat B not defected to ilpeet addr«5*
5800 The Crossings Drive
UMHM^^MM*
956004793
Rtxirtv-Mtr 4 Report number
: 3
f C*j, latin, at past artier, state and 2IP code
Carlsbad, CA 92008
* DattoCoaue
Ntanteaf issue t OJSflPniatM
j
ft Kane and tifle of sAktr •.-« N-sjai reprtrsertJCwe »»K»n fte IRS may cal to mote iriamatsin
11
It
IS
14
IS
It
1?
11
It
20
T«kfta»airAtarAtdlfinr*
I >
te«i> feh+cfc and attach sdhedJa
D
D Meattft and he&pM
D
D
O Cnwttonmem urctudoq s«wage bonds)
D
D
SI Ot*t Oejcftte ^ Municipality
f ofcBgailom we r*Ns « RAMs. cftecA bo« >• O V otfcgatietts are 8AM&. check be>«
»^ in the form of a tros* or mMaHtnmt «*i. chccfc bog
U
11
14
II
D»«criptkin of ObUgrttem. Comptet« for the eniif« ts&t» for tvtnch this form is being fited
(«>frBlW3liim| date »t) stand NMMtpMft
f f M Jt - "MtL/Pf
02/15/2013 $ 356,398.80 0 yean.
IHes o< Prtxaeds of Bond tssu« Ortdudkig underwitBre-discount)
Itn
24
21
2«
fT
9
It
30
usadl for accrued interest .........
issye p<iee of ta«fe issue teu« amou* from kw ?1, column
Procsette ua$d tot fjond c&uance QC&IS IncMkr^ u*ter*ri«-s
Proce«cte ailocarjHj to
used w
to
(add ins ?*
r«e<)ti«ed resiefve at
pitor issue*
prtor &s«jes .
24
T
IT
Nonrefanding proceeds of ttue Issue (subtract ins 29 from ine ?3 and ent^r amount hete^.
356,398.80
0
356,398.80
32
31
34
Enter the JWianng wwghted iv« aye maiuftty of th* txandi to be currently refundetl
inter tfte fftnamntj w«»0v«tt »w«age maturity of tfie be»vts. ro be advance r«rurxtet|
tne U4t date on vudtcfi tfus refUKted bonds «i« be caifed . ........
years
srts, issue iftai are to Sse used to made ioar& to ah*
3S fntw rhe amount ofth« st«e uefusne
36« f r*a tie amount of (jnww pr ««**. *fa«tet{» IB te ia*«i*d rt a ^uar artaatl iwesttnefit oanffiict fsee ir*sirudk;(«t
b Em« die (*•»«» rnatuiay <Jait; tif tne ijj^arteecl iwfestnw*'* corxract >» __
37
38
39
40
if !N?
issuer
if dte
i-s 3 loan mad* front fhw proctpiKte of anothw
ana tf»
. dhieck box •*• i_J and
al Hie saa* I*
the nnni« erf
sicepftaiii. cf*cx tc«>• Qs des*<|e<ia[«<t *» issue unite* secticri ?65itij«3sirt)|iXlin (-smai rt
if aie issuer K» eHtec;ed w pay a penalty i« lieu irfartitraqe firtiate s^eck bot ... ........... ^'
if sne S'suer Has idensfigd a mdgg, checfc bon ..... • ............ ...... >>
For Paperwork Reducftoo Act Notice, s«e pag» 2 of the Instruction*
IRS Form 8038-G
it v -i 8038-G :
The Crossings at The Crossings at CarlsbadCarlsbadProposed 2009Proposed 2009Operating & Capital BudgetOperating & Capital BudgetDecember 16, 2008December 16, 2008
The Crossings at CarlsbadThe Crossings at CarlsbadFinalist for Clubhouse of the Year by Golf Inc. MagazineFinalist for Clubhouse of the Year Finalist for Clubhouse of the Year by Golf Inc. Magazineby Golf Inc. Magazine
Top 10 New CoursesTop 10 New Courses
2008 Accomplishments2008 AccomplishmentsGolf Operations`The Crossings Club loyalty program establishes itself with 1,144 members.`Ongoing year round Junior program being maintained.`Created first ever City of Carlsbad Amateur Golf Championship.`Hosted first ever Crossings Club Championship.Golf OperationsGolf Operations``The Crossings Club loyalty program The Crossings Club loyalty program establishes itself with 1,144 establishes itself with 1,144 members.members.``Ongoing year round Junior program Ongoing year round Junior program being maintained.being maintained.``Created first ever City of Carlsbad Created first ever City of Carlsbad Amateur Golf Championship.Amateur Golf Championship.``Hosted first ever Crossings Club Hosted first ever Crossings Club Championship.Championship.
2008 Accomplishments2008 Accomplishments(continued)(continued)Banquet Highlights`34 weddings in 2008.`Have sold 47 weddings to date for 2009.`Hosted wedding show in October (resulted in 2 event bookings).Community Events`Valentines Day Dinner`Easter Brunch`Mother’s Day BrunchBanquet HighlightsBanquet Highlights``34 weddings in 2008.34 weddings in 2008.``Have sold 47 weddings to date for Have sold 47 weddings to date for 2009.2009.``Hosted wedding show in October Hosted wedding show in October (resulted in 2 event bookings).(resulted in 2 event bookings).Community EventsCommunity Events``Valentines Day DinnerValentines Day Dinner``Easter BrunchEaster Brunch``MotherMother’’s Day Brunchs Day Brunch
2008 Accomplishments2008 Accomplishments(continued)(continued)Community Events (cont.)`Wine Tasting Series`Father’s Day BBQ`4thof July BBQ & Family Fun Day`Pumpkin Carving & Halloween Brunch`Thanksgiving Day Brunch`New Year’s Eve Dinner & CelebrationCommunity Events (cont.)Community Events (cont.)``Wine Tasting SeriesWine Tasting Series``FatherFather’’s Day BBQs Day BBQ``44ththof July BBQ & Family Fun Dayof July BBQ & Family Fun Day``Pumpkin Carving & Halloween Pumpkin Carving & Halloween BrunchBrunch``Thanksgiving Day BrunchThanksgiving Day Brunch``New YearNew Year’’s Eve Dinner & Celebrations Eve Dinner & Celebration
The Crossings at CarlsbadThe Crossings at CarlsbadTwo Actions are Requested Tonight:`Approve the 2009 Operating and Capital Budget for the golf course`Approve an amendment to the existing Municipal Lease Agreement for the purchase of golf carts. Two Actions are Requested Two Actions are Requested Tonight:Tonight:``Approve the 2009 Operating and Approve the 2009 Operating and Capital Budget for the golf courseCapital Budget for the golf course``Approve an amendment to the Approve an amendment to the existing Municipal Lease Agreement existing Municipal Lease Agreement for the purchase of golf carts. for the purchase of golf carts.
The Crossings at CarlsbadThe Crossings at Carlsbad2009 Proposed Budget`Considered the economic recession`Paid rounds of golf lowered to 50,550 from 52,014 in 2008`No change in fees since opening in August 2007`Incorporates new lease amendment for new golf carts saving approx. $138 per month2009 Proposed Budget2009 Proposed Budget``Considered the economic recessionConsidered the economic recession``Paid rounds of golf lowered to Paid rounds of golf lowered to 50,550 from 52,014 in 200850,550 from 52,014 in 2008``No change in fees since opening in No change in fees since opening in August 2007August 2007``Incorporates new lease amendment Incorporates new lease amendment for new golf carts saving approx. for new golf carts saving approx. $138 per month$138 per month
2009 Budget Summary2009 Budget SummaryDescriptionDescription2009 Proposed2009 Proposed2008 Projections2008 ProjectionsREVENUESREVENUESCourse & GroundsCourse & Grounds$ 3,200,969$ 3,200,969$ 3,341,626$ 3,341,626Food & BeverageFood & BeverageOtherOther2,464,2052,464,205718,315718,3152,311,1962,311,196730,339730,339TOTAL REVENUESTOTAL REVENUES$ 6,383,489$ 6,383,489$ 6,383,161$ 6,383,161TOTAL COST OF SALESTOTAL COST OF SALES942,001942,001922,458922,458TOTAL PAYROLL EXPENSETOTAL PAYROLL EXPENSE2,600,7342,600,7342,527,2802,527,280TOTAL OTHER EXPENSESTOTAL OTHER EXPENSES2,590,8662,590,8662,492,8252,492,825TOTAL EXPENSESTOTAL EXPENSES$ 6,133,601$ 6,133,601$ 5,942,563$ 5,942,563Revenues Less ExpensesRevenues Less Expenses$ 249,888$ 249,888$ 440,598$ 440,598(continued)(continued)
2009 Budget Summary2009 Budget Summary(continued)(continued)DescriptionDescription2009 Proposed2009 Proposed2008 Projections2008 ProjectionsCAPITAL RESERVECAPITAL RESERVE$ 64,019$ 64,019$ 68,350$ 68,350PAYMENT ON DEBTPAYMENT ON DEBT1,104,0001,104,0001,104,0001,104,000NET INCOME/(LOSS) FROMNET INCOME/(LOSS) FROMOPERATIONSOPERATIONS$ (918,131)$ (918,131)$ (731,752)$ (731,752)HABITAT COSTSHABITAT COSTS(514,138)(514,138)(582,086)(582,086)CIP BudgetCIP Budget$(197,950$(197,950$(250,000)$(250,000)NET CASH FLOWNET CASH FLOW$ (1,630,219)$ (1,630,219)$ (1,563,838)$ (1,563,838)PAID ROUNDS PAID ROUNDS ––TOTALTOTAL$ 50,550$ 50,550$ 52,014$ 52,014
The Crossings at CarlsbadThe Crossings at CarlsbadIn addition to golf, there are the trails surrounding the golf course available to the public.If exclude Debt Payment and Habitat costs, the Golf Course operations would be at breakeven.In addition to golf, there are the In addition to golf, there are the trails surrounding the golf course trails surrounding the golf course available to the public.available to the public.If exclude Debt Payment and If exclude Debt Payment and Habitat costs, the Golf Course Habitat costs, the Golf Course operations would be at operations would be at breakeven.breakeven.
2009 CIP Budget2009 CIP BudgetCourse drainage Course drainage $ 155,950 $ 155,950 Add steps on east side of ClubhouseAdd steps on east side of Clubhouse$ 12,000$ 12,000Replant slopes at waterfall and Hole 7Replant slopes at waterfall and Hole 7$ 30,000 $ 30,000 TOTALTOTAL$ 197,950$ 197,950
The Crossings at CarlsbadThe Crossings at Carlsbad1)Approve Resolution No. 48 approving the 2009 Operating and Capital Budget for the Golf Course2)Approve Resolution No. 49 approving an amendment to the existing Municipal Lease Agreement for the purchase of golf carts1)1)Approve Resolution No. 48 Approve Resolution No. 48 approving the 2009 Operating approving the 2009 Operating and Capital Budget for the Golf and Capital Budget for the Golf CourseCourse2)2)Approve Resolution No. 49 Approve Resolution No. 49 approving an amendment to the approving an amendment to the existing Municipal Lease existing Municipal Lease Agreement for the purchase of Agreement for the purchase of golf cartsgolf carts
The Crossings at The Crossings at CarlsbadCarlsbadProposed 2009Proposed 2009Operating & Capital BudgetOperating & Capital BudgetDecember 16, 2008December 16, 2008