The Villages Golf and Country

Club

2009/2010 Operating and Reserve Budget Presentation

FINAL DRAFT – APRIL 22, 2009

2

The Remaining Schedule

The Club Budget Development Process (what’s remaining)

March 26, 2009 Operating budget recommendations are presented to Finance Committee – including any fee changes

April 2, 2009 Replacement Reserve budgets and Facility Reserve budgets are presented to Finance Committee

April 9, 2009 Complete budget overview is presented to Finance Committee

April 16, 2009 Operating budget, Replacement Reserve budget and Facility Reserve budget are presented to the Board of Directors

April 28, 2009 Board of Directors formally approves and accepts FY10 budget

Club OperatingDraft Budget - FY 09/10

4

Budget workshop with Board of Directors Departmental meetings Line-by-line review of each budget There was a heightened awareness this year to

be as frugal as we could without affecting service levels to obvious extent

Three budget review meetings were conducted with Finance Committee and the Committee approves of the budget with the exception of the golf operation element

Process To Date

5

2009-2010 Fiscal Year Draft Club Budget Summary As it stands today, the operating assessment can

remain flat for the next fiscal year – assuming fee adjustments are made to the golf operation

The history…

YEAR FY 06 FY 07 % CHANGE FY 08 % CHANGE FY 09 % CHANGE FY 10 % CHANGE

OPERATING 158.37 174.23 10.0% 178.72 2.6% 197.71 10.6% 198.18 0.2%

RESERVE-REPLACEMENT 21.38 25.07 17.3% 33.02 31.7% 37.82 14.5% 42.35 12.0%

*RESERVE-FACILITY FUND 20.00 7.00 -65.0% 15.00 114.3% 15.00 0.0% 10.00 -33.3%

TOTAL 199.75 206.30 3.3% 226.74 9.9% 250.53 10.5% 250.53 0.0%

CLUB ASSESSMENT HISTORY

6

The Big Picture Association and the Club

2010 2009 Difference % Change

Association Operating Assessments 7,082,133 7,297,740 215,607 -3.0%

Association Reserve Assessments 4,766,970 4,426,300 (340,670) 7.7%

Total Association 11,849,103 11,724,040 (125,063) 1.1%

Club Operating Assessments 6,031,071 6,017,086 (13,985) 0.2%

Club Reserve Assessments 1,289,113 1,150,938 (138,175) 12.0%

Club Facility Fund Assessments 304,320 456,480 152,160 -33.3%

Total Club 7,624,504 7,624,504 - 0.0%

Total Club & Association 19,473,607 19,348,544 (125,063) 0.6%

CLUB/ ASSOCIATION ASSESSMENT CHANGE SUMMARY

7

2009-2010 Fiscal Year Draft Operating Budget Summary

Decrease in total revenue of $93,600 Pro Shop retail ($18,000) Food and Beverage ($81,500 – 4.7 percent) Advertising ($23,500 – 9.3 percent) – Villager

and Directory Total decrease to expenses of $40,200

Employee benefits up $179,800 Total cost of wages and benefits equals $123,800

Cost of water increased $90,500

8

2009-2010 Fiscal Year Draft Operating Budget Summary

Insurance is flat Repair and Maintenance increased $28,300 (7.1

percent increase) Landscape expenses decreased $240,100 (31.9

percent) – this includes savings from the recent contract renewal and reduced landscape expenses on the golf course

General utilities are down $56,400 – mainly electricity (UCCC-driven)

Cable television expenses increased $21,700 per contract – less than the maximum amount permitted

Outside services increased $47,100 (8.5 percent) Villager printing $20,000, aeration on course $10,000

and payroll processing $10,000

9

FY 10 FY 09 $ Change % Change

CATV $34.22 $33.50 $0.72 2.1

Clubhouse/ Restaurant $21.70 $17.90 $3.80 21.2

Clubhouses $20.62 $19.98 $0.64 3.2

All others $24.04 $32.33 ($8.29) -25.6

Community Activities $18.08 $16.66 $1.42 8.5

G & A $23.53 $22.46 $1.07 4.8

Pools $6.23 $6.33 ($0.10) -1.6

Public Safety $27.82 $27.07 $0.75 2.8

Maint Admin $4.26 $4.01 $0.25 6.2

Golf/ Pro-Shop $17.68 $17.47 $0.21 1.2

Totals $198.18 $197.71 $0.47 0.2

The Main Expense Categories

10

Revenues: FY 10 FY 09 Change Per Cent Assessments 6,031,100 6,017,000 14,100 0.2 Green Fees 1,327,500 1,419,500 (92,000) -6.5 Pro Shop Revenue 314,100 332,600 (18,500) -5.6 Golf Cart Fees 146,700 153,000 (6,300) -4.1 Restaurant Sales 1,655,500 1,737,000 (81,500) -4.7 Rental Income 96,200 100,500 (4,300) -4.3 Advertising 229,500 253,000 (23,500) -9.3 Billable Services 43,500 46,000 (2,500) -5.4 Activities/ Lessons/ Classes 231,400 230,300 1,100 0.5 Other 175,500 175,500 - 0.0

Total Revenues 10,251,000 10,464,400 (213,400) -2.0

Expenses: Wages and Benefits 6,327,000 6,203,200 123,800 2.0 Cost of Sales 1,019,000 1,033,900 (14,900) -1.4 Operating Supplies 324,700 331,500 (6,800) -2.1 Repair & Maint 426,800 398,500 28,300 7.1 Landscape 511,700 751,800 (240,100) -31.9 Water 656,900 566,400 90,500 16.0 Utilities 536,800 593,200 (56,400) -9.5 Cable TV 1,041,300 1,019,600 21,700 2.1 Outside Services/ Consultants 602,700 555,600 47,100 8.5 Insurance 98,200 98,500 (300) -0.3 All Other 258,400 259,100 (700) -0.3 Club Transfers to Association/ HO (1,582,400) (1,550,000) (32,400) 2.1

Total expenses 10,221,100 10,261,300 (40,200) -0.4

Surplus(deficit) 29,900 203,100 (173,200)

New capital purchases (11,800) (36,000) 24,200

Cash Surplus (Deficit) 18,100 167,100 (149,000)

11

Landscape Contract Renewal

ASSOCIATION $433,100

CLUB $237,600

HOMEOWNERS $6,700

TOTAL $677,400

Note: When the savings were applied to the operatingassessment, $40,000 remained that was transferred to the Reserve Fund

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1,915,000 % Association FY 10

YEAR

10.8% 301 Cribari District 206,820 10.0% 302 Montgomery District 191,500 3.0% 303 The Heights District 57,450 8.8% 304 Hermosa District 168,520 8.0% 305 Verano District 153,200 9.1% 306 Del Lago I District 174,265

10.4% 307 Highlands District 199,160 3.7% 308 Glen Arden District 70,855

11.9% 309 Olivas District 227,885 1.5% 310 Fairways District 28,725 4.5% 311 Sonata District 86,175 3.7% 312 Valle Vista District 70,855

85.4% 1,635,410

Homeowners

3.5% Estates 67,025 67,025

Club

1.7% 081 Cribari Center 32,555 0.7% 082 Montgomery Ctr 13,405 0.6% 084 Vineyard Ctr 11,490 0.8% 085 Foothills Ctr 15,320 6.1% 146 Other properties 116,815 0.4% 151 Cribari Pool 7,660 0.1% 161 R.V. Lot 1,915 0.7% 168 Corporation Yard 13,405

11.1% 212,565

100.0% 1,915,000

TRUGREEN ALLOCATION-8445

13

25-Mar-09

Cost Center Item Amount Reason

Cribari Center Stiga Table Tennis Table/ Wheels 1,400 Amenity EnhancementPowermatic Band Saw 1,100 Amenity EnhancementSand-Free Drum Sander 750 Amenity Enhancement

Public Safety Exit Bar Code Reader 8,500 Improve Security

Grand total 11,750

Last year 36,000

Capital Equipment/Improvements Section

The Villages Golf and Country ClubFY 2009-10

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Club Operating Expense Components - FY 09/10

Club Operating Expense Components

Insurance1%

Outside Services/Contractors

5%

Cable TV9%

Water & Utilities10%

Landscape4%

Repair & Maint4%

Operating Supplies/Cost of Sales

11%

Salaries and Benefits54%

All Other2%

15

Payroll Related Expenses Overall increase of $123,800 or 2 percent Head count reduced by 3 FTEs

Wages and taxes reduced by $55,000 Only two departments increased head count

.5 FTE in GM office (delivery of monthly statements) .5 FTE in Community Activities (AV set ups)

Reductions in overtime pay (F&B and Golf Maintenance)

2.75 percent increase to employee salaries – except F&B – no increases CPI – 3.3 percent Fed COLA 5.8 percent

16

Payroll Related Expenses - Benefits

Increase cost to benefit package of $178,800 – a 20 percent increase Benefit plan renewal equated to roughly 11

percent Dental was budgeted short last year – $35,000 Participant plan mix changed – single to family

Average cost per employee increased from $7,400 to $9,100

Plan was adjusted – deductibles and co-pays were increased – passing $300 to $400 in additional cost back to employee in form of monthly program contribution

THE VILLAGES GOLF & COUNTRY CLUB Full-time equivalent staffing Payroll Comparative Changes

FY 10 FY 09 Budget FY 08 FY 10 Budget:Department Budget Budget Change Actuals FY 08 Actuals

General Services 9.9 9.4 0.5 9.0 0.9

Maintenance Services 18.0 18.0 - 16.8 1.2

Shop Maintenance 2.0 2.0 - 2.0 -

Golf Maintenance 14.2 15.5 (1.3) 15.5 (1.3)

Golf Professional 5.9 6.2 (0.3) 5.5 0.4

Community Activity 4.1 3.6 0.5 3.8 0.3

Club Maintenance 8.4 9.0 (0.6) 8.5 (0.1)

Stables 0.3 0.5 (0.2) 0.3 -

Public Safety 15.3 15.7 (0.4) 16.1 (0.8)

Villager 4.9 5.1 (0.2) 4.7 0.2

Post Office 0.8 0.8 - 0.7 0.1

The Clubhouse 2.9 3.2 (0.3) 2.6 0.3

Food & Beverage 30.9 31.5 (0.6) 32.2 (1.3)

TOTALS 117.5 120.5 (3.0) 117.7 (0.2)

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FY 10 FY 09 % ChangeWages 4,862,800$ 4,908,200$ -0.9Taxes 394,800 404,400 -2.4Benefits 1,069,400 890,600 20.1

6,327,000$ 6,203,200$ 2.0

Total $ Change 123,800$

Fiscal Year Wages Taxes Benefits TotalFY 10 41,400 3,400 9,100 53,900 FY 09 40,700 3,400 7,400 51,500

% Change 1.7% 0.0% 23.0% 4.7%

FY 10 Payroll Costs

Average Pay DataFTE Wages, Taxes, and Benefits

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Food and Beverage Loss of revenue - $81,000 (4.7 percent)

Lower diner count expected Will not jump out to a big start this summer as

we did last summer Total expenses increased by $39,100 (1.7

percent) Wages and Benefits

Salary flat other than F&B Director incentive that was never budgeted

Benefits increased by $62,800 (25 percent) Overtime cut in half No wage adjustments – frozen

20

The Bottom Line – not better…worse

2006 Actual 2007 Actual 2008 Actual 2009 Budget 2009 Forecast 2010 budget

475,132.00$ 604,380.00$ 551,428.00$ 544,877.00$ 544,872.00$ 660,513.00$

F&B Bottom Assessment - Historical Subsidies (Assessments)

0

100000

200000

300000

400000

500000

600000

700000

2006 Actual 2007 Actual 2008 Actual 2009 Budget 2009 Forecast 2010 budget

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Golf Program Revenue BaseFY 10 FY 09 Remarks

Green fees 1,327,500 1,420,000 No change in fee structure

Golf carts 146,700 153,000 No change in fee strucutre

Pro shop revenue 314,000 333,000

1,788,200 1,906,000

22

Costs shared 65/35 - FY 10 FY 09 Change Per Cent

Golf Maintenance Op 1,838,000 1,796,000 42,000 2.3

Pro Shop Op-Net 163,000 144,000 19,000 13.2

Golf Reserves 250,000 227,000 23,000 10.1

Prior budget deficit -

Total shared costs 2,251,000 2,167,000 84,000 3.9

Costs to golfers -

Pro Shop Op-Net -

Prior budget deficit 150,000 172,000 (22,000) -12.8

Deferred (150,000) (10,000) (140,000) 1400.0

Total cost base 2,251,000 2,329,000 (78,000) (3.3)

Paid by resident golfers 1,003,300 48% 1,085,400 47% (82,100) -7.6Paid by guest golfers 459,700 19% 485,600 21% (25,900) -5.3Paid by assess (35% of 2,251,000)788,000 33% 758,000 33% 30,000 4.0

Monthly assessment 25.89$ 24.90$ 0.99 4.0(788,000/ 2536/ 12)

Golf Program Cost Distribution

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FY 10 FY 09 FY 10 FY 09Green fees: Weekday Weekday Diff Weekend Weekend Diff

Member, regular 18 $22.00 $22.00 $0.00 $22.00 $22.00 $0.00Member, regular 9 $14.00 $14.00 $0.00 $14.00 $14.00 $0.00Member, short 9 $9.00 $9.00 $0.00 $9.00 $9.00 $0.00Guest, regular 18 $52.00 $52.00 $0.00 $60.00 $60.00 $0.00Guest, regular 9 $37.00 $37.00 $0.00 $40.00 $40.00 $0.00Guest, Guest day, regular 18 $32.00 $32.00 $0.00 $32.00 $32.00 $0.00Guest, Team/ Invitational, regular 18 $22.00 $22.00 $0.00 N/ A N/ A $0.00Guest day, regular 9 $15.00 $15.00 $0.00 N/ A N/ A $0.00Guest day, short 9 $9.00 $9.00 $0.00 N/ A N/ A $0.00

Special green fees: Twilight $14.00 $14.00 $0.00 $14.00 $14.00 $0.00 Outside tournaments $50.00 $50.00 $0.00 N/ A N/ A $0.00

Private Club Exchange $50.00 $50.00 $0.00 $50.00 $50.00 $0.00Golf Cart Rentals(Subject to change)

Members $25.00 $25.00 $0.00 $25.00 $25.00 $0.00

Golf Rates and Fees

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Emergency Preparedness Committee

$10,000 in this year’s budget EPC requested $22,000 Resubmitted at $15,000, which was

approved

FY 09 FY 08 Amount Amount Diff

Third Resident Assoc. Fee (Per Month) $55.00 $55.00 $0.00Fourth Party Club Fee (Per Month) $113.37 $113.37 $0.00Stabling Fee (Per Month) $250.00 $250.00 $0.00

R.V. Storage Fees (Per Month): 20 Feet or Less $28.25 $28.25 $0.00 21 to 25 Feet $33.25 $33.25 $0.00 26 to 30 Feet $36.50 $36.50 $0.00 31 Feet or More $40.25 $40.25 $0.00 RV Lot Electricity Connection $10.00 $10.00 $0.00

Guest Rooms (Daily Rate): Single $75.00 $70.00 $5.00 Double $85.00 $80.00 $5.00 (Plus 10% Room Tax)

Facility Use: Deposit (Varies with Facility) Clean-up Charge (Per Hour, 1/2 Hr Min.) $35.00 $35.00 $0.00 Rental Fee (Varies with Facility) Key Purchase Equipment rental

The Villager Newspaper: Display Advertising (Per Inch) $10.00 $10.00 $0.00 Non-Resident Subscription (Per Year) $80.00 $80.00 $0.00 Inserts (Per 1000) $160.00 $160.00 $0.00 Classified Ad/Resident (Minimum) $5.00 $5.00 $0.00 Classified Ad/Non-Resident (Minimum) $10.00 $10.00 $0.00

Golf Cart Fees (Per Month): Golfer's Trail Fee $15.00 $15.00 $0.00 Storage $2.00 $2.00 $0.00 Electricity $7.00 $7.00 $0.00

Green Fees:Member, Regular 18 $22.00 $20.00 $2.00Member, Regular 9 $14.00 $13.25 $0.75Member, Short 9 $9.00 $8.75 $0.25Member, Twilight $14.00 $13.25 $0.75*Guest, Regular 18 $60.00 $49.00 $11.00*Guest, Regular 9 $37.00 $36.00 $1.00*Guest, Short 9 $15.00 $14.75 $0.25*Guest day, Regular 18 $32.00 $30.00 $2.00*Guest Day, Regular 9 $15.00 $15.00 $0.00*Guest Day, Short 9 $9.00 $9.00 $0.00*Guest, Team Play/Invitational, Reg. 18 $22.00 $20.00 $2.00*Outside Tournament $50.00 $48.00 $2.00*Private Club-Reciprocal $50.00 $48.00 $2.00

*Golf Cart Rental: Member $25.00 $25.00 $0.00 Guest $35.00 $35.00 $0.00

Refer to published rates Refer to published rates

The Villages Golf and Country ClubFY 09

Schedule of Fees and Charges

Refer to published rates

26

Things to Consider Shortening the swimming season at Cribari and Foothill by 12-13

weeks saves roughly $5,000 in utility and pool-related expenses Increasing the assessment late fee from $5 to $10 (which we

can) could generate an additional $10,000 Going “electronic only” with the Villager could save $125,000 Billable charges to Association could be increased to reflect

staff’s time Turning off irrigation to first 175 feet of fairway from the tee

could save $35,000 Cancelling home delivery of Villager could save $25,000 – news-

boxes would be placed around the community Not using the tent for the July 4 celebration could save $5,000 Restaurant and golf operation could shut down for a day

(Mondays for golf and Tuesdays for the restaurant) could save $ Cellular providers are re-interested – could generate $20-50,000

per year

Capital Budget Proposal

28

Process To Date Budget workshop with Board of

Directors Departmental meetings Line-by-line review of each schedule

29

Key Points Relating the Reserve Fund Total spending plan for 2009/2010 is

$1,586,600 Golf portion of spending plan is $268,500

2009/2010 ending fund balance is $977,900

Club portion of spending plan is $1,318,100 2009/2010 ending fund balance is $870,100

30

Key Points Relating the Reserve Fund Total funding (assessment) for consolidated

plan equates to $1,289,100 Increase in funding plan from last year’s

projection is roughly $140,000 Increase in asphalt and roadway maintenance plan

accounts for a $110,000 increase over the $235,000 projected last year – now $343,000

32

Key Points Relating the Reserve Fund $27,000 ADA improvements to Cribari Center $126,700 for seven new vehicles - four for

maintenance, two for janitorial and one for public safety

$82,000 in improvements to corporation yard building

$60,500 to replace roof on professional buildings $65,000 for fitness equipment $50,000 for landscape improvements

33

Key Points Relating the Reserve Fund $42,000 for outdoor and pool area furniture $65,000 for chairs for Cribari $60,000 for Montgomery Center renovations $60,000 for driving range irrigation

replacement $60,000 for driving range replacement netting $123,000 in golf course replacement

equipment

34

The Reserve Fund in Detail

35

4/ 13/ 09 Inf factor 5%

Invest factor 3%

1 2 3 4 5 6 7 8 9 10

Location 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Cribari Center 152,400 203,100 260,800 54,700 36,500 79,300 2,700 580,100 81,500 495,100

Montgomery Center 128,000 52,300 57,800 - 26,200 29,600 19,300 39,700 33,200 28,000

Pro-Shop 3,800 10,200 3,300 11,600 78,800 3,800 36,300 - 19,200 21,000

Vineyard Center 18,400 30,600 3,300 22,600 900 3,000 13,400 19,800 48,400 3,800

Foothills Center 11,100 45,400 800 - 1,200 - 6,700 11,500 6,700 48,400

Pools 74,200 38,500 300 700 2,100 18,700 3,200 209,900 21,400 82,500

Tennis Courts - - - - 158,900 - - 53,900 - -

Lakes and Ponds - 127,800 800 - - - - 11,500 1,000 -

Perimeter Fences 9,700 - - - - 244,200 - - - -

Gazebo Park 10,000 33,100 27,600 4,600 9,700 5,900 - 14,100 - 2,500

Hill Lands - 5,300 - - - 112,300 - - - -

Landscape 50,000 55,100 57,900 60,800 63,800 67,000 70,400 73,900 77,600 -

Public Safety 50,000 43,800 12,000 11,700 20,400 2,600 30,800 5,400 13,300 34,200

Other Equipment and Vehicles 107,600 99,100 130,500 4,100 17,300 26,000 86,400 95,200 41,600 143,200

Professional Building 77,600 20,900 400 1,700 24,400 1,200 49,000 1,700 15,800 35,000

Corporation Yard 208,700 168,700 29,900 71,800 13,900 7,500 60,400 17,200 154,200 9,300

The Clubhouse 77,400 354,700 142,700 35,000 75,200 37,500 302,200 132,900 112,300 123,100

Signs - 15,900 11,000 11,600 6,100 - - 21,000 - -

Streets 343,000 169,200 224,500 412,600 752,900 72,700 320,300 762,400 138,500 455,700

Golf 264,700 196,400 323,800 227,400 209,500 669,500 46,300 - 90,700 789,200

Totals 1,586,600 1,670,100 1,287,400 930,900 1,497,800 1,380,800 1,047,400 2,050,200 855,400 2,271,000

Est Beginning Balance 1,930,500 1,847,913 1,709,713 2,026,413 2,865,713 3,320,713 4,013,013 5,175,413 5,472,213 7,114,813

Assessments 1,289,113 1,413,000 1,548,900 1,697,900 1,861,400 1,964,700 2,074,000 2,189,600 2,312,000 2,441,500

FF loan payments 159,100 66,300

less expenses (1,586,600) (1,670,100) (1,287,400) (930,900) (1,497,800) (1,380,800) (1,047,400) (2,050,200) (855,400) (2,271,000)

Est net interest 55,800 52,600 55,200 72,300 91,400 108,400 135,800 157,400 186,000 216,000

Est ending Balance 1,847,913 1,709,713 2,026,413 2,865,713 3,320,713 4,013,013 5,175,413 5,472,213 7,114,813 7,501,313

Est annual assessment 42.35$ 46.43$ 50.90$ 55.79$ 61.17$ 64.56$ 68.15$ 71.95$ 75.97$ 80.23$

12.0% 9.6% 9.6% 9.6% 9.6% 5.5% 5.6% 5.6% 5.6% 5.6%

The Villages Golf and Country Club - Consolidated Reserve Fund and Cashflow

Estimated replacement costs at future dollars

36

4/15/09FY 10

Facility ONLY GOLFLocation

Inf factor 5%

1 2 3 4 5 6 7 8 9 10 11 12Location 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Pro-Shop 3,800 10,200 3,300 11,600 78,800 3,800 36,300 - 19,200 21,000 6,200 114,800 Golf 264,700 196,400 323,800 227,400 209,500 669,500 46,300 - 90,700 789,200 2,385,500 261,000

Totals 268,500 206,600 327,100 239,000 288,300 673,300 82,600 - 109,900 810,200 2,391,700 375,800

Est Beginning Balance 967,600 977,900 1,071,600 1,067,700 1,176,800 1,264,700 992,100 1,340,700 1,815,700 2,228,300 1,980,000 159,600 Assessments 250,000 270,000 291,600 314,900 340,100 367,300 396,700 428,400 462,700 499,700 539,700 582,900 FF loan paymentsless expenses (268,500) (206,600) (327,100) (239,000) (288,300) (673,300) (82,600) - (109,900) (810,200) (2,391,700) (375,800) Est net interest 28,800 30,300 31,600 33,200 36,100 33,400 34,500 46,600 59,800 62,200 31,600 7,900 Est ending Balance 977,900 1,071,600 1,067,700 1,176,800 1,264,700 992,100 1,340,700 1,815,700 2,228,300 1,980,000 159,600 374,600

Est annual assessment 8.22$ 8.87$ 9.58$ 10.35$ 11.18$ 12.07$ 13.04$ 14.08$ 15.20$ 16.42$ 17.73$ 19.15$ 10.2% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%

The Villages Golf and Country Club

Club ReserveConsolidated Cash Flow

Estimated replacement costs at future dollars

37

4/13/09

Invest factor 3%Inf factor 5%

1 2 3 4 5 6 7 8 9 10 11Location 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Cribari Center 152,400 203,100 260,800 54,700 36,500 79,300 2,700 580,100 81,500 495,100 92,800 Montgomery Center 128,000 52,300 57,800 - 26,200 29,600 19,300 39,700 33,200 28,000 46,700

Vineyard Center 18,400 30,600 3,300 22,600 900 3,000 13,400 19,800 48,400 3,800 1,000 Foothills Center 11,100 45,400 800 - 1,200 - 6,700 11,500 6,700 48,400 - Pools 74,200 38,500 300 700 2,100 18,700 3,200 209,900 21,400 82,500 11,600 Tennis Courts - - - - 158,900 - - 53,900 - - - Lakes and Ponds - 127,800 800 - - - - 11,500 1,000 - - Perimeter Fences 9,700 - - - - 244,200 - - - - - Gazebo Park 10,000 33,100 27,600 4,600 9,700 5,900 - 14,100 - 2,500 - Hill Lands - 5,300 - - - 112,300 - - - - - Landscape 50,000 55,100 57,900 60,800 63,800 67,000 70,400 73,900 77,600 - - Public Safety 50,000 43,800 12,000 11,700 20,400 2,600 30,800 5,400 13,300 34,200 75,200 Other Equipment and Vehicles 107,600 99,100 130,500 4,100 17,300 26,000 86,400 95,200 41,600 143,200 59,100 Professional Building 77,600 20,900 400 1,700 24,400 1,200 49,000 1,700 15,800 35,000 70,200 Corporation Yard 208,700 168,700 29,900 71,800 13,900 7,500 60,400 17,200 154,200 9,300 62,200 The Clubhouse 77,400 354,700 142,700 35,000 75,200 37,500 302,200 132,900 112,300 123,100 315,200 Signs - 15,900 11,000 11,600 6,100 - - 21,000 - - - Streets 343,000 169,200 224,500 412,600 752,900 72,700 320,300 762,400 138,500 455,700 633,500

Totals 1,318,100 1,463,500 960,300 691,900 1,209,500 707,500 964,800 2,050,200 745,500 1,460,800 1,367,500

Est Beginning Balance 962,900 870,113 638,213 958,813 1,689,013 2,056,113 3,021,013 3,834,813 3,656,513 4,886,613 5,521,413 Assessments 1,039,113 1,143,000 1,257,300 1,383,000 1,521,300 1,597,400 1,677,300 1,761,200 1,849,300 1,941,800 2,038,900 FF loan payments 159,100 66,300 less expenses (1,318,100) (1,463,500) (960,300) (691,900) (1,209,500) (707,500) (964,800) (2,050,200) (745,500) (1,460,800) (1,367,500) Est net interest 27,100 22,300 23,600 39,100 55,300 75,000 101,300 110,700 126,300 153,800 175,700 Est ending Balance 870,113 638,213 958,813 1,689,013 2,056,113 3,021,013 3,834,813 3,656,513 4,886,613 5,521,413 6,368,513

Est annual assessment 34.15$ 37.56$ 41.32$ 45.45$ 49.99$ 52.49$ 55.12$ 57.87$ 60.77$ 63.81$ 67.00$ 12.5% 10.0% 10.0% 10.0% 10.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

The Villages Golf and Country Club - The Club (golf numbers not included)

Estimated replacement costs at future dollars

38

The Facility Fund in Detail Note: The following projections do not assume that the Capital Project Improvement

Plan will be approved.

The recommendation: give $5 of the $15 back to offset the burden

39

Facility Fund

Estimated balance at 06/ 30/ 09 1,299,500$

Fixed commitments and contracts- Fixed payments (300,500) Approved contracts (256,551)

Totals (557,051)

Unallocated balance 742,449$

$1M* cap limitation balance 1,105,467$

Cap limitation assessment balance 363,018$

Maximum allowable assessment 11.93$

Recommendation 10.00$

*2008 Inflation Adjustment 3.2%

*2009 Inflation Adjustment 2.9%

*2010 Inflation Adjustment 4.1%

Facilities Fund Status FY 2009/2010( Exclusive of interest income)

40

Facility Fund

Facility Fund Annual Fixed Expenses

Loan payments to Club Reserve 143,900$ (Done 11/ 10)$ 14 credit to 932 members 156,600$ (Done 06/ 11)

300,500$

41

Facility Fund Current and Prospective

ProjectsFY 09 Current Contracts

Golf Cart Storage Facility 106,551$

Driving Range Fence 150,000$

256,551$

FY 10 Prospective Projects

None Listed

Totals 256,551$

42

How does all this affect the monthly assessment?Club Expense Categories - Tot.Expense Cost perCost Per Member Per Month Dollars UnitGolf Course 538,000 17.68Tennis Courts 10,098 0.33Swimming Pools 189,663 6.23Restaurant 310,132 10.19Clubhouse 350,381 11.51Community Centers 627,546 20.62Post Office 48,986 1.61Villager 231,097 7.59Cable TV 1,041,286 34.22Community Activities 312,826 10.28Public Safety 846,606 27.82Roads/ Other Property 572,276 18.81General/ Admin 952,174 31.29Reserve Replacement 1,289,113 42.35Reserve Facility Fund 304,320 10.00Total

7,624,504 250.53

43

2010 Club Assessment Cost ComponentsTotal Monthly Assessment = $250.53

Tennis Courts Swim Pools Restaurant C lubhouse

Community Centers

Post Offi ce Villager

Community ActivitiesPublic Safety

Roads/Other Property

General/Administrative

Golf Course Reserve Facility FundReserve Replacement

Cable TV

Golf Course - $17.68 Tennis Courts - $.33 Swim Pools - $6.23 Restaurant - $10.19 Clubhouse - $11.51

Community Centers - $20.62 Post Office - $1.61 Villager - $7.59 Cable TV - $34.22 Community Activities - $10.28

Public Safety - $27.82 Roads/Other Property - $18.81 General/Admin - $31.29 Reserve Replacement - $42.35 Reserve Facility Fund - $10.00

44

The Big Picture Association and the Club

2010 2009 Difference % Change

Association Operating Assessments 7,082,133 7,297,740 215,607 -3.0%

Association Reserve Assessments 4,766,970 4,426,300 (340,670) 7.7%

Total Association 11,849,103 11,724,040 (125,063) 1.1%

Club Operating Assessments 6,031,071 6,017,086 (13,985) 0.2%

Club Reserve Assessments 1,289,113 1,150,938 (138,175) 12.0%

Club Facility Fund Assessments 304,320 456,480 152,160 -33.3%

Total Club 7,624,504 7,624,504 - 0.0%

Total Club & Association 19,473,607 19,348,544 (125,063) 0.6%

CLUB/ ASSOCIATION ASSESSMENT CHANGE SUMMARY