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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 Carlsbad‹Finalist for Clubhouse of the Year by Golf Inc. Magazine‹‹Finalist 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 Accomplishments‹Golf 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 Brunch‹‹Banquet 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 & Celebration‹‹Community 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 Carlsbad‹Two 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 Carlsbad‹2009 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 month‹‹2009 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 Carlsbad‹In 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