Executive Summary - 6 year plan and fiscal year budget upda…

Michael Montgomery

Assist. Director University Recreation

Patrick Stanton

Financial Controller

Scott Carlson

Program Coordinator, CPP

Scott Wade

VP University Advancement

3.) FINANCES

Tomlinson Field Improvements Differential Analysis - Effects of Project on Operating Costs

Capital Cost

$ 4,000,000 Year 1-5

Year 6-10

Year 11-15

Year 16-20

Year 21-25

Year 26-30

Revenues

$ 49,436 $ 56,007 $ 53,334 $ 72,329 $ 82,677 $ 83,093

Expenses Event Expenses Maintenance Equipment Turf Renewal Total Expenses Operating Income/(Loss) Utilities

44,492 50,406 48,001 65,096 74,409 74,784 61,335 78,280 99,907 127,510 162,739 207,700 (21,237) (24,619) (28,540) (33,086) (38,356) (44,465) 12,500 13,262 16,310 17,431 21,919 23,426 454,559 482,266 593,096 633,892 797,072 851,897 $ 551,649 $ 599,596 $ 728,774 $ 810,843 $ 1,017,783 $ 1,113,343

$ (502,213) $ (543,589) $ (675,440) $ (738,514) $ (935,106) $ (1,030,250)

Net Present Value $ (2,703,664)

The $4-million cost of the renovation will be funded by the CWU Foundation. Please see Appendix A, “Tomlinson Pro forma 10-4-17,” which displays the estimated financial implications of this project. The project is expected to be funded at $4 million. It is anticipated that the funding will come through a financial arrangement with the CWU Foundation, in the form of a gift to the university as funds are required for construction. It is important to note that CWU accrues no liability in this funding agreement; it involves no re-payment by CWU of the $4 million (e.g. bond or loan payment). Operating revenues are shown annually for the main external billable uses of the facility. The operating expenses shown include event expenses of approximately 90 percent of the revenue associated with the WIAA and GNAC events. The other main operating expenses considered include utilities, which are costs not currently experienced with the current facility. The new field lighting is estimated in this model to cost $10,000 annually and to increase over time. This is the cost associated with six new light poles at $200 each, operating 20 hours per month at the City of Ellensburg commercial rate. Telephone, cable and Internet services will be added as well. There is a possibility of having a contract for light repair, maintenance and replacements with the lighting vendor, as CWU does not have the equipment needed to perform this work. The costs of

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