To: POATRI Board of Directors From: Merrill Jordan
Subject: Five Year Financial Plan for the Resort Date: April 4, 2009
Overview
As the Board considers the future of the Resort, it becomes clear that we need to understand the cost of reopening and operating the Resort. The Budget & Finance Committee is pleased to submit the attached Five Year Financial Plan showing what the cost to property owners would be to reopen and operate the Resort at a business level similar to what it was prior to closing. The purpose of this analysis is to assist the Board in establishing a process to resolve the future direction of the Resort.
The Plan is comprehensive and considers all related factors including, Rebuilding the Customer Base, Capital Projects, Operating Expenses, Marketing Programs, Resort Staffing, and specific reopening costs. A five year time frame is presented in the Plan to show the type of commitment that is needed from property owners to successfully operate the Resort. It is understood that changes to the Plan may be needed in the future, due to circumstances we cannot predict or through revisions by a Resort manager. However, the BFC has included all available information and references and believes this is an accurate and viable plan for reopening and operating the Resort.
Content of the Five Year Financial Plan
This Five Year Financial Plan includes the following:
1. This Cover Letter which presents the Assumptions and Guidelines used in the Plan.
2. An Executive Financial Summary which provides on one page, the top level summary of the Five Year Plan and the assessment amount needed from each property owner.
3. Supporting schedules with all the formulas used for calculations, and all the detailed Income and Expense line items that roll up into the Executive Summary.
4. A worksheet with four years of historical financial information used in estimating Income and Expenses.
5. Separate schedules (appendices) to explain and support all major items in the Plan.
Assumptions and Guidelines used in the Plan
· This Plan supports rebuilding the Resort business to the level it was prior to closing.
· This Plan reflects the need to rebuild our customer base, due to the Resort being closed.
· This Plan includes Capital Projects that are needed for normal operation and to avoid serious maintenance problems that affect our customers. Many Projects must be completed prior to re-opening, causing a higher assessment amount in the first year of the Plan.
· A Contingency Fund is required to cover variations in income, expenses and capital expenditures because there is no other means to handle emergency situations.
· Capital projects and marketing programs must be performed prior to re-opening, but cannot be started prior to having (assessment) funds available. The first year of the Plan allows for capital and marketing projects for the first nine months, and income generation in the last quarter, based on the Resort reopening October 1, 2010.
I suggest that the next step is to review the alternative courses of action and establish a process to work toward resolving what to do with the Resort.
|
| Home New Owners Operations Board News Policies Events Contact Newsletter Signup
Property Owners Association of Terlingua Ranch, Inc.
BEFORE ACCESSING THIS SITE, PLEASE READ OUR TERMS OF USE >> |