Golf Course Authority

To: NGCA Members From: Charles Whitty, Chairman NGCA Budget Subcommittee Re: Minutes of NGCA Budget Subcommittee of October 18, 2016 Members Present Bernard Caulfield Richard Podurgiel Michael Driscoll Charles Whitty Others Present Mike Svab, Pro Manager Sandra Kuchta, Finance Department Bruce Morse, Superintendent James Homiski, Member’s Club Chairman Whitty called the Budget Subcommittee meeting to order at 11:40 a.m. Sandra Kuchta reported on results through September 30, 2016 and estimated revenues and expenses in October and through years end. Projecting from the last three years figures she estimated revenues in 2016 to be between $1,120,000-$1,134,000 with roughly $64,000 in revenue needed through the end of the year to reach the budgeted revenue figure. Expenses will be higher than budgeted, probably $15,000-$20,000 higher. Course supplies, utilities, repairs, maintenance and overtime in the Pro Shop given the early opening, account for most of the overage. In addition, the Authority has incurred expenses in connection with the ongoing review and analysis on the feasibility of installing a pond and pumping system at the course. Ms. Kuchta worked with Mike Svab and Bruce Morse in preparing expense estimates for the 2017 year. A draft of these estimates was presented and Ms. Kuchta explained the calculations that led to her figures. Among other things, the minimum wage will increase by 50 cents. The estimate used to calculate gas and oil expenses will be reduced by a quarter per the purchasing agent’s suggestion. Utilities were calculated using rates in effect for 2017 and projected use based on past experience. Mr. Morse discussed the need to replace the deck on the Kubota recommending a new deck rather than a re-built one. A new deck can cost between $8,000-8,400 vs. $7,000 for the installation of a re-built deck and installation of other required items. The discussions included budgeting for 2017 and expenditures which may be necessary to reduce expenses long term. Ms. Kuchta budgeted for insurance anticipating a change of carriers resulting in a saving of $12,500 in 2017. It is difficult to predict loss experience and any subsequent increases in the insurance costs. These discussions focused on the cost of water and the capital expenses in developing a pond and pumping system on site. A motion to adjourn the meeting was made at 1:03 p.m. by Mr. Podurgiel, seconded by Mr. Caulfield, and approved unanimously.